Course Code: BSL306 Course Title: Direct Tax Laws and International

Taxation

Course Instructor: Dr. Jamal Abdul Nasir Ansari

Academic Task No.: 01 Academic Task Title: Assessment of Total Income of Company
Sun Pharma Industries

Date of Allotment: 12/08/2022 Date of submission: 31/08/2022

Student’s Roll no: RQ3E44A16 Student’s Reg. no: 12001809

Evaluation Parameters:

Learning Outcomes: Through this assignment, I got to learn about tax structure and tax liability
under normal and 115 JB MAT regime.

Declaration:

I declare that this Assignment is my individual work. I have not copied it from any other student’s work
or from any other source except where due acknowledgement is made explicitly in the text, nor has any
part been written for me by any other person.

Student’s Signature: NAINPREET.

Evaluator’s comments:-

Evaluator’s Signature and Date:

Marks Obtained: _______________ Max. Marks: _____________

General Observations Suggestions for Improvement Best part of assignment

Page 1 of 12
 ACKNOWLEDGEMENT

I would like to express my special thanks and gratitude to Dr. Jamal Abdul Nasir
Ansari for their able guidance and support in completing my assignment. This
assignment has helped me a lot regarding taxation of the company.

I have learnt how to find out tax liability of the company by various methods and
which amount is to be taken as tax liability of the company.

Page 2 of 12
 COMPANY PROFILE
Sun Pharmaceutical Industries Limited (d/b/a Sun Pharma)
is an Indian multinational pharmaceutical company
headquartered in Mumbai, Maharashtra, that manufactures
and sells pharmaceutical formulations and active
pharmaceutical ingredients (APIs) in more than 100
countries across the globe. It is the largest pharmaceutical
company in India and the fourth largest specialty generic
pharmaceutical company in the world, with a total revenue
of over US$4.5 billion as of June 2021. The products cater
to a vast range of therapeutic segments covering
psychiatry, anti-infectives, neurology, cardiology,
orthopaedic, diabetology, gastroenterology,
ophthalmology, nephrology, urology, dermatology,
gynaecology, respiratory, oncology, dental and nutritional.
Its API products include Absorica, Acamprosate Calcium, Alendronate Sodium, Amifostine
trihydrate, Budensonide and Carvedilol.

With global revenues of more than US$ 4.5 billion, Sun Pharmaceutical Industries Ltd. (Sun
Pharma) is the fourth-largest specialty generic pharmaceutical firm in the world. With the help
of more than 40 production facilities, we supply more than 100 nations with high-quality,
reasonably priced medications that are dependable among patients and medical experts.

Sun Pharmaceuticals was founded by Dilip Shanghvi in 1983 in Vapi, Gujarat, with five
products to treat psychiatry ailments. Cardiology products were introduced in 1987 followed
by gastroenterology products in 1989. Today it is ranked number one by prescriptions with
nine different specialties of doctors in India and a market leader in cardiology,
gastroenterology, ortho, diabetology, dermatology, urology, vitamins, minerals, and nutrients.

The 2014 acquisition of Ranbaxy made Sun Pharma the largest pharma company in India, the
largest Indian pharma company in the US, and the 4th largest specialty generic company
globally.

Over 72% of Sun Pharma sales are from markets outside India, primarily in the United States.
The US is the single largest market, accounting for about 30% of the company's turnover; in
all, formulations or finished dosage forms, account for 93% of the turnover. Manufacturing is
across 44 global locations in India, the US, Asia, Africa, Australia and Europe. In the United
States, the company markets a large basket of generics, with a strong pipeline awaiting
approval from the U.S. Food and Drug Administration (FDA).

Sun Pharma was listed on the stock exchange in 1994 in an issue oversubscribed 55 times. The
founding family continues to hold a majority stake in the company.

Page 3 of 12
 VISION & MISSION

Dabur’s vision is to satisfy the health and well-being of all its customers. Dabur would achieve
its vision by offering high quality natural products that will improve the customer’s health and
personal care. In doing so, the mission is maximizing the value offered to the shareholder.

USP: Bringing Healthcare at affordable prices for India Masses.

PRINCIPLES

• Ownership
• Passion for Winning
• People Development
• Consumer Focus
• Team Work
• Innovation
• Integrity

BOARD OF DIRECTORS

Name Designation

A K Jain Executive Vice President & Co. Secretary

Aditya Burman Director

Ajay Dua Director

Ajit Mohan Sharan Director

Amit Burman Chairman

Ankush Jain Chief Financial Officer

Falguni Sanjay Nayar Director

Mohit Burman Vice Chairman

Mohit Malhotra WholeTime Director & CEO

Mukesh Butani Director

P D Narang Whole Time Director

Page 4 of 12
P N Vijay Director

R C Bhargava Director

S Narayan Director

Saket Burman Director

Type Public

Traded as • BSE: 524715

• NSE: SUNPHARMA
• BSE SENSEX Constituent
• NSE NIFTY 50 Constituent

ISIN INE044A01036

Industry Pharmaceuticals

Founded 1983; 39 years ago

Founder Dilip Shanghvi

Headquarters Mumbai

India

Area served Worldwide

Key people Dilip Shanghvi (MD)

Products • Pharmaceuticals
• Branded generic drugs
• over-the-counter drugs
• Speciality drugs
• OTCs
• APIs
• ARVs

Revenue ₹39,576
crore (US$5.0 billion) (2022)

Page 5 of 12
Operating income ₹4,481
crore (US$560 million) (2022)

Net income ₹3,405

crore (US$430 million) (2022)

Total assets ₹69,799

crore (US$8.7 billion) (2022)

Total equity ₹48,011

crore (US$6.0 billion) (2022)

Number of 37,000+ (2021)

employees

Website sunpharma.com

Page 6 of 12
COMPUTATION OF TAX LIABILITY FOR A-Y 2022-23
Profit & Loss Statement: -

Page 7 of 12
Page 8 of 12
Page 9 of 12
 COMPUTATION OF REGULAR TAX LIABILITY

Regular tax @30% of Total income 49,631.7

(approx..49632)
Add: education Cess: (4%) on 49,632 1,985.2
Tax liability 51617.2

COMPUTATION OF BOOK PROFIT

Particulars Rs Rs
Net profit as p/l account 18,57,000

Add: positive adjustments

Depreciation 5,40,000
Provision for Bad debts 34,000
Provision for unascertained liabilities 25,870
Loss of Subsidiary company 45,000
Interest for late filing of ITR 3,400
Proposed dividend and CDT 65,490
Provision of Income Tax 45,000 7,58,760
Less: Negative adjustments/Statutory deduction

Deferred Tax (22,000)

Income of AOP (43,600)
Dividend from Indian Companies (exempt) (95,750)
Depreciation(excl.dep. on a/c of revaluation) (2,00,000)
Brought forward loss or unabsorbed deb. Whichever is (6,000) 3,67,350
lower(as per book of accounts)
Book Profit 2248410

Page 10 of 12
 COMPUTATION OF MAT LIABILITY

MAT Liability= MAT @18.5% of Book Profit Rs. 2248410 4,15,956

Educ. Cess 4% on 415956 16,638
MAT liability 4,32,594

TAX LIABILITY

Whichever tax liability is higher from regular tax or Minimum Alternate Tax (MAT) will the
tax payable/ liability of the company.
According to the above calculations our tax payable from Normal profit method is 51,617.2,
whereas from Book profit method (MAT) is 4,32,594.

So, the tax payable or liability of the company is 4,32,594 (Book profit method MAT) as it
is higher.

(The data taken here are imaginary)

Page 11 of 12
THANKYOU SIR

Page 12 of 12