Growth Rate during Explicit Period,g 18.0%

Growth Rate after Explicit Period,g 5.00%

WACC 12.66%

Tax Rate, t 34%

PARTICULARS 0 1 2 3

Earnings before Tax 14,720.53

ADD: Interest 1,366.74

EBIT 16087.27

EBIT*(1-t) 10617.60 12528.77 14783.94 17445.05

Depreciation 3,202.47 3,202.47 3,202.47 3,202.47

Capex 735.71 0 0 0

Changes in NWC -11,356.82 3666.21 4326.13 5104.83

FCFF 24,441.18 12,065.02 13,660.28 15,542.69

Terminal Value

PV of FCFF 10708.77 10761.74 10868.26

Firm Value (₹ in Million) 244170.20

Equity Value (₹ in Million) 270461.82

As at 31

March 2014

As at 31

December 2012

Tangible Fixed Assets 30,204.69 28,566.87

Intangible Fixed Assets 20,608.58 21,510.69

Total Current Assets 70,356.72 1,00,123.33

Current assetsAs at 31

March 2014

As at 31

December 2012 Year 1 Year 2

Current investments 18.95 20.48

Inventories 27606.81 27313.54

Trade receivables 20698.98 20367.84 24034.0512 28360.18

Cash and bank balances 15496.7 46004.45

Short-term loans and advances 4709.75 4595.32 3666.2112 4326.129

Other current assets 1825.53 1821.7

Total 70356.72 100123.33

Changes in Current assets due to change in Trade Receivables

4 5 6

20585.16 24290.49 25505.02

3,202.47 3,202.47 3,202.47

0 0 0

6023.70 7107.97 2329.83

17,763.93 20,384.99 26,377.65

344134.64

11025.14 200806.29

Year 3 Year 4 Year 5 Year 6

33465.01289 39488.71521 46596.68395 48926.52

5104.832475 6023.70232 7107.968738 2329.834

Changes in Current assets due to change in Trade Receivables

Number of Shares of Sun Pharma (As on 31st March,

2013)1035581955

Average Share Price (As on 31st December, 2012) 365.436

Value of Sun Pharma 3.78439E+11

Value of Ranbaxy 270461819875.16

As per our calculation 0.71

As per the Merger 0.80