ETHICAL COMPLIANCE REPORT

NEULAND LAB.

Sector:

Healthcare

Industry:

Drug Manufacturers - Specialty & Generic

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Pharmaceuticals
compliant
REVENUE RATIO FILTER
0.5%
View Calculations
DEBT RATIO FILTER
4.5%
View Calculations
LIQUIDITY RATIO FILTER
6.4%
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.

0.5%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{82268000.00}{15711248000.00} \times 100 = 0.50\%

FORMULA

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

Segment	Compliance	Value
Sale of Impurities	compliant	₹1.32
Sale of Scrap	compliant	₹17.55
Export Incentives	compliant	₹24.06
Other Income	compliant	₹4.32
Sale of Pharmaceuticals Products	compliant	₹1,447.48
Job Work Income	compliant	₹68.19
Interest Income	non-compliant	₹8.23

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.

4.5%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{825070000.00}{18325610000.00} \times 100 = 4.50\%

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.

6.4%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{1167900000.00}{18325610000.00} \times 100 = 6.40\%

FORMULA

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