ETHICAL COMPLIANCE REPORT

AARTI DRUGS.

Sector:

Healthcare

Industry:

Drug Manufacturers - Specialty & Generic

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Pharmaceuticals
compliant
REVENUE RATIO FILTER
0.1%
View Calculations
DEBT RATIO FILTER
23.1%
View Calculations
LIQUIDITY RATIO FILTER
0.4%
View Calculations

Revenue Ratio

The sum of revenue from questionable and non-compliant sources should not exceed 3% of the total revenue. This ensures that the company has tolerable reliance on unethical sources of revenue.

0.1%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{24966000.00}{25326066000.00} \times 100 = 0.10\%

FORMULA

\textbf{Revenue Ratio:} \\[12pt] \dfrac{\text{Unethical Segments}}{\text{Total Revenue}} \times 100 \; \leq \; 3\%

Segment	Compliance	Value
Pharmaceutical Products	compliant	₹2,508.87
Other Operating Revenue	compliant	₹19.71
Interest Income	non-compliant	₹2.50
Dividend income	questionable	₹0.00
Miscellaneous Income	compliant	₹1.53

Debt Ratio

The interest bearing debt should not exceed 31% of the total assets. This is to ensure that the company is not paying a significant portion of its assets as interest.

23.1%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{5624165000.00}{24323580000.00} \times 100 = 23.10\%

FORMULA

\textbf{Debt Ratio:} \\[12pt] \dfrac{\text{Interest Bearing Debt}}{\text{Total Assets}} \times 100 \; \leq \; 30\%

Liquidity Ratio

The total liquid assets should not exceed 90% of the total assets. This is to ensure that trading this stock does not become similar to trading a currency.

0.4%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{94315000.00}{24323580000.00} \times 100 = 0.40\%

FORMULA

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{\text{Total Liquid Assets}}{\text{Total Assets}} \times 100 \; \leq \; 90\%