ETHICAL COMPLIANCE REPORT

AARTI PHARMALABS

Sector:

Healthcare

Industry:

Drug Manufacturers - Specialty & Generic

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Pharmaceuticals
compliant
REVENUE RATIO FILTER
0.3%
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DEBT RATIO FILTER
13.6%
View Calculations
LIQUIDITY RATIO FILTER
0.3%
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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.

0.3%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{71469000.00}{21251937000.00} \times 100 = 0.30\%

FORMULA

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

Segment	Compliance	Value
Sale of services	compliant	₹9.28
Other Income	compliant	₹2.97
Net Gain on Sale of Investments	questionable	₹0.05
Pharmaceutical Products	compliant	₹2,076.72
Interest Income	non-compliant	₹7.10
Other Operating Revenue	compliant	₹29.07

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.

13.6%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{3963523000.00}{29064051000.00} \times 100 = 13.60\%

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.

0.3%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{86456000.00}{29064051000.00} \times 100 = 0.30\%

FORMULA

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