ETHICAL COMPLIANCE REPORT

ALKEM LABORATORIES.

Sector:

Healthcare

Industry:

Drug Manufacturers - Specialty & Generic

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Pharma Company
compliant
REVENUE RATIO FILTER
1.3%
View Calculations
DEBT RATIO FILTER
9.1%
View Calculations
LIQUIDITY RATIO FILTER
11.1%
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.

1.3%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{1626500000.00}{107968400000.00} \times 100 = 1.30\%

FORMULA

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

Segment	Compliance	Value
Export Incentives	compliant	₹17.26
Sale of Pharmaceuticals Products	compliant	₹10,453.96
Job Work Income	compliant	₹58.07
Scrap Sales	compliant	₹18.33
Budgetary Support Benefit Under Gst	compliant	₹83.72
Miscellaneous Income	compliant	₹2.85
Other Income	non-compliant	₹162.65

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.

9.1%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{14184100000.00}{155749000000.00} \times 100 = 9.10\%

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.

11.1%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{17283400000.00}{155749000000.00} \times 100 = 11.10\%

FORMULA

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