HQ Team
January 31, 2023: Syngene’s operations in the Indian city of Hyderabad have been transferred to another wholly-armed arm of the company with effect from April 1, 2023, for a value of INR 4 billion, according to a BSE filing.
The consideration received from the slump sale will be at most INR 4,000 million. Revenue from Hyderabad operations amounts to INR 1,579 million or 6.1% of the total income from operations of the company during the fiscal year ended March 2022.
The net worth of Hyderabad operations amounts to INR 1,687 Million or 5.1% of the company’s total net worth for the fiscal year ended March 2022. The transfer agreement was inked on January 30, 2023.
A slump sale for income tax purposes would be one where an undertaking is sold without considering the individual values of the assets or liabilities contained within the undertaking. The gain or loss resulting from a slump sale shall be a capital gain or loss under the Income Tax Act.
Net worth
Capital gains arising on slump sales are calculated as the difference between the sale consideration and the net worth of the undertaking. Net worth is deemed to be the cost of acquisition and improvement for section 48 and section 49 of the Act.
Syngene Scientific Solutions Limited is a wholly-owned subsidiary of the company which acquired the Hyderabad operations was incorporated on August 10, 2022, as a contract research services company.
The transaction is carried out on book value according to the methodology defined under the Income Tax Act. According to the filing, the Audit Committee and Board of Directors have approved the transaction.
Drug discovery
Syngene Scientific Solutions has a roadmap to evolve as a premium destination for cutting-edge drug discovery research, mainly focusing on Integrated Drug Discovery (IDD).
As a part of this roadmap, it is planned to undertake all research-related activities in Syngene Scientific. The slump sale of the Hyderabad operations to Sygene Scientific will be a step towards establishing it as a centre of excellence in drug discovery.
The company aims to create a connected and integrated approach towards multiple facets of the drug discovery process. Syngene International is an integrated contract research, development and manufacturing organization providing scientific services – from early discovery to commercial supply.
Syngene Scientific Solutions Limited is a public company classified as a non-government company and registered at the Registrar of Companies, Bangalore.
