ETHICAL COMPLIANCE REPORT

AUROBINDO PHARMA

Sector:

Healthcare

Industry:

Drug Manufacturers - Specialty & Generic

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Pharmaceuticals
compliant
REVENUE RATIO FILTER
1%
View Calculations
DEBT RATIO FILTER
14%
View Calculations
LIQUIDITY RATIO FILTER
13.9%
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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.

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{2892900000.00}{295592500000.00} \times 100 = 1.00\%

FORMULA

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

Segment	Compliance	Value
Sale of Pharmaceuticals Products	compliant	₹28,223.30
Job Work Income	compliant	₹481.20
Government Incentive Schemes	compliant	₹276.77
Scrap Sales	compliant	₹20.60
Interest Income	non-compliant	₹289.29
other income	compliant	₹268.09

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.

14%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{63152200000.00}{450715100000.00} \times 100 = 14.00\%

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.

13.9%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{62783000000.00}{450715100000.00} \times 100 = 13.90\%

FORMULA

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