Sun Pharmaceutical Industry

(a) Why are Sun Pharma's shareholders unhappy despite the company's strong performance over the years?

(b) What was the issue with the transaction with Atlas? Isn't that sufficient disclosure for the shareholders?

(c) When should a company make disclosures voluntarily, if at all, as opposed to disclosures mandated by law or regulation and what are the trade-offs?

(d) What was the issues with the AML transaction?

(e) Shanghvi says he routed the sales through AML to create a more tax efficient structure and plays his role as CEO for the best of the company. In your opinion, which one is more important, ability or integrity of the CEO?

(f) The share price and P/E ratio both dropped precipitously towards the end of 2018 when the corporate governance issues came out. Investors should expect the disclosures in future to improve and have a positive impact on profits which in turn should cause the share price to improve. Why has the reverse happened?

(g) The Board of Sun Pharma has set up a corporate governance and ethics committee to review the standards of governance. Do you think it will help the company regain trust?

(h) Did Sun Pharma have a strong board of directors?

(i) What should the board have done in relation to the AML and Atlas transactions?

(j) What should SEBI do? Should it accept their consent pleas?