ETHICAL COMPLIANCE REPORT

IPCA LABORATORIES

Sector:

Healthcare

Industry:

Drug Manufacturers - Specialty & Generic

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Pharma Company
compliant
REVENUE RATIO FILTER
1.5%
View Calculations
DEBT RATIO FILTER
12.5%
View Calculations
LIQUIDITY RATIO FILTER
2.7%
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.

1.5%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{1176400000.00}{78298100000.00} \times 100 = 1.50\%

FORMULA

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

Segment	Compliance	Value
Pharma Products	compliant	₹7,464.21
Sale of Services	compliant	₹158.20
Other Operating Revenue	compliant	₹82.63
Other Income	compliant	₹7.13
Interest Income	non-compliant	₹117.64

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.

12.5%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{13875000000.00}{111012800000.00} \times 100 = 12.50\%

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.

2.7%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{2968400000.00}{111012800000.00} \times 100 = 2.70\%

FORMULA

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