The National Company Law Tribunal (NCLT) has approved the composite scheme of arrangement involving Sun Pharmaceutical Industries. The scheme includes the amalgamation of wholly-owned subsidiaries with Sun Pharma and the reclassification of the company’s general reserve to retained earnings. This restructuring is effective from April 1, 2023, as the appointed date. The approval was communicated on October 8, 2025.
Amalgamation and Reclassification
Sun Pharmaceutical Industries has received approval from the National Company Law Tribunal (NCLT) for its composite scheme of arrangement. This scheme involves two key components:
- Amalgamation of wholly-owned subsidiary companies with Sun Pharmaceutical Industries.
- Reclassification of the company’s general reserve to retained earnings.
Subsidiary Companies Involved
The amalgamation includes the following wholly-owned subsidiaries:
- Sun Pharmaceutical Medicare Limited
- Green Eco Development Centre Limited
- Faststone Mercantile Company Private Limited
- Realstone Multitrade Private Limited
- Skisen Labs Private Limited
Effective Date and Financial Impact
The scheme is effective from April 1, 2023. While the announcement does not give specific financial implications of the amalgamation, it is expected to streamline operations and improve financial management. The reclassification of general reserve to retained earnings will change the structure of equity.
Financial Overview of the Companies (2024)
The document provides a snapshot of financials for the year 2024 for both the parent company Sun Pharmaceutical Industries and its subsidiaries. Here’s a look:
Sun Pharmaceutical Medicare Limited
- Total income: Rs.3,415.1 million
- Operating profit: Rs.118.4 million
- Accumulated losses: Rs. 3,835.3 million
Green Eco Development Centre Limited
- Total income: NIL
- Loss: Rs. 0.05 million
- Accumulated losses: Rs. 5.8 million
Faststone Mercantile Company Private Limited
- Total income: Rs. 0.1 million
- Operating profit: NIL
- Reserves: Rs. 3.3 million
Realstone Multitrade Private Limited
- Total income: Rs. 0.1 million
- Operating profit: NIL
- Reserves: Rs. 2.2 million
Skisen Labs Private Limited
- Total income: NIL
- Operating profit: NIL
- Accumulated losses: Rs. 164.2 million
Sun Pharmaceutical Industries Limited
- Standalone revenue: Rs. 202,751.7 million
- Consolidated revenue: Rs. 484,968.5 million
- Standalone net profit: Rs.28,581.8 million
- Consolidated net profit: Rs. 96,484.4 million
- Standalone Other equity: Rs.212,929.3 million
- Consolidated Other equity: Rs. 553,059.1 million
Source: BSE