ETHICAL COMPLIANCE REPORT

NATCO PHARMA.

NATCO PHARMA. Logo

Sector:

Healthcare

Industry:

Drug Manufacturers - Specialty & Generic

Overall Compliance

compliant

compliant

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.

2.5%

Non Compliant
Questionable
Compliant

CALCULATION

Revenue Ratio:1017000000.0041269000000.00×100=2.50%\textbf{Revenue Ratio:} \\[12pt] \dfrac{1017000000.00}{41269000000.00} \times 100 = 2.50\%

FORMULA

Revenue Ratio:Unethical SegmentsTotal Revenue×100  ≤  3%\textbf{Revenue Ratio:} \\[12pt] \dfrac{\text{Unethical Segments}}{\text{Total Revenue}} \times 100 \; \leq \; 3\%
SegmentComplianceValue
Sale of Services
compliant
compliant		₹353.30
Sale of Products - Pharma
compliant
compliant		₹3,624.60
Interest Income
non-compliant
non-compliant		₹101.00
Job Work Income
compliant
compliant		₹0.90
Other Operating Revenues
compliant
compliant		₹20.00
Investment Gain
questionable
questionable		₹0.70
Other Income
compliant
compliant		₹26.40

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.

5.3%

CALCULATION

Debt Ratio:3632000000.0069063000000.00×100=5.30%\textbf{Debt Ratio:} \\[12pt] \dfrac{3632000000.00}{69063000000.00} \times 100 = 5.30\%

FORMULA

Debt Ratio:Interest Bearing DebtTotal Assets×100  ≤  30%\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.

13.8%

CALCULATION

Liquidity Ratio:9529000000.0069063000000.00×100=13.80%\textbf{Liquidity Ratio:} \\[12pt] \dfrac{9529000000.00}{69063000000.00} \times 100 = 13.80\%

FORMULA

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