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India’s biggest drugmaker Sun Pharmaceutical ordered to review accounts

NEW DELHI. India’s biggest drugmaker Sun Pharmaceutical said it has been ordered to undertake a “forensic” audit of its accounts, following whistle-blowers’ claims that sent its shares down sharply.

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The firm said in a statement to financial markets late on Thursday that the Securities and Exchange Board of India (Sebi) has told it to review its financial statements for the last three years.

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The note gave no reason for the audit but it follows whistle-blower complaints on alleged corporate governance lapses that sent its share price tumbling last year, Bloomberg News reported.

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The allegations prompted the firm, controlled by billionaire Dilip Shanghvi, to tweak some of its business contracts to contain the crisis of confidence, according to Bloomberg.

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The claims said that Shanghvi was wringing extra financial benefits from Sun’s operations through related-party transactions. In December he denied wrongdoing.

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The company is “committed to adhering to all applicable legal and statutory requirements”, it said in the filing. Its shares were down 2.35 per cent late Friday morning.

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