ETHICAL COMPLIANCE REPORT

DR. REDDY S LABORATORIES

Sector:

Healthcare

Industry:

Drug Manufacturers - Specialty & Generic

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Pharma Company
compliant
REVENUE RATIO FILTER
1.9%
View Calculations
DEBT RATIO FILTER
4.3%
View Calculations
LIQUIDITY RATIO FILTER
4.5%
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.

1.9%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{5427000000.00}{289054000000.00} \times 100 = 1.90\%

FORMULA

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

Segment	Compliance	Value
Global Generics	compliant	₹24,545.30
Psai	compliant	₹2,980.10
Others	compliant	₹391.00
Sale of Spent Chemicals	compliant	₹48.90
Scrap Sales	compliant	₹33.80
Miscellaneous Income, Net	compliant	₹12.00
Other Income	compliant	₹351.60
Interest Income	non-compliant	₹542.70

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.

4.3%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{16523000000.00}{387518000000.00} \times 100 = 4.30\%

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.

4.5%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{17277000000.00}{387518000000.00} \times 100 = 4.50\%

FORMULA

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