ETHICAL COMPLIANCE REPORT

ERIS LIFESCIENCES

Sector:

Healthcare

Industry:

Drug Manufacturers - Specialty & Generic

Overall Compliance

non-compliant

PRIMARY BUSINESS FILTER
Pharmaceuticals
compliant
REVENUE RATIO FILTER
0.8%
View Calculations
DEBT RATIO FILTER
38.8%
View Calculations
LIQUIDITY RATIO FILTER
19.9%
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.

0.8%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{163860000.00}{20329580000.00} \times 100 = 0.80\%

FORMULA

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

Segment	Compliance	Value
Other Operating Revenues	compliant	₹17.85
Other Income	compliant	₹7.43
Pharmaceutical Products	compliant	₹1,991.30
Investment Gain	questionable	₹9.38
Interest Income	non-compliant	₹7.01

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.

38.8%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{27352670000.00}{70488370000.00} \times 100 = 38.80\%

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.

19.9%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{14006300000.00}{70488370000.00} \times 100 = 19.90\%

FORMULA

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