ETHICAL COMPLIANCE REPORT

NEOGEN CHEMICALS

Sector:

Basic Materials

Industry:

Specialty Chemicals

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.

1%

Non Compliant
Questionable
Compliant

CALCULATION

Revenue Ratio:73100000.006981400000.00×100=1.00%\textbf{Revenue Ratio:} \\[12pt] \dfrac{73100000.00}{6981400000.00} \times 100 = 1.00\%

FORMULA

Revenue Ratio:Unethical SegmentsTotal Revenue×100  ≤  3%\textbf{Revenue Ratio:} \\[12pt] \dfrac{\text{Unethical Segments}}{\text{Total Revenue}} \times 100 \; \leq \; 3\%
SegmentComplianceValue
Interest Income
non-compliant
non-compliant		₹7.31
Sale of Products Comprises Manufactured Goods of Chemicals
compliant
compliant		₹632.67
Other Operating Revenue
compliant
compliant		₹58.00
Other non operating Revenue
compliant
compliant		₹0.16

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.

26.9%

CALCULATION

Debt Ratio:3935300000.0014614000000.00×100=26.90%\textbf{Debt Ratio:} \\[12pt] \dfrac{3935300000.00}{14614000000.00} \times 100 = 26.90\%

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.

0.9%

CALCULATION

Liquidity Ratio:124900000.0014614000000.00×100=0.90%\textbf{Liquidity Ratio:} \\[12pt] \dfrac{124900000.00}{14614000000.00} \times 100 = 0.90\%

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\%