ETHICAL COMPLIANCE REPORT

KILITCH DRUGS INDIA

Sector:

Healthcare

Industry:

Drug Manufacturers - Specialty & Generic

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Pharmaceuticals
compliant
REVENUE RATIO FILTER
1.1%
View Calculations
DEBT RATIO FILTER
13.2%
View Calculations
LIQUIDITY RATIO FILTER
8.2%
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.

1.1%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{18084000.00}{1588514000.00} \times 100 = 1.10\%

FORMULA

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

Segment	Compliance	Value
Other Operating Revenue	compliant	₹0.77
Pharmaceuticals Products	compliant	₹153.61
Interest income	non-compliant	₹0.41
Net Gain on Sale of Investments	questionable	₹1.40
Other Income	compliant	₹2.67

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.

13.2%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{316465000.00}{2400616000.00} \times 100 = 13.20\%

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.

8.2%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{196426000.00}{2400616000.00} \times 100 = 8.20\%

FORMULA

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