ETHICAL COMPLIANCE REPORT

RAINBOW CHILDRENS MED

Sector:

Healthcare

Industry:

Medical Care Facilities

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Hospitals & Diagnostic Centres
compliant
REVENUE RATIO FILTER
2.5%
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DEBT RATIO FILTER
0%
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LIQUIDITY RATIO FILTER
0.5%
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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

\textbf{Revenue Ratio:} \\[12pt] \dfrac{338680000.00}{13339640000.00} \times 100 = 2.50\%

FORMULA

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

Segment	Compliance	Value
Hospital Services	compliant	₹1,130.06
Pharmacy Sales	compliant	₹130.11
Medical Service Fee	compliant	₹25.52
Other Operating Revenues	compliant	₹11.21
interest & other	non-compliant	₹33.87
other income	compliant	₹3.20

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.

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{0.00}{21703980000.00} \times 100 = 0.00\%

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.

0.5%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{101260000.00}{21703980000.00} \times 100 = 0.50\%

FORMULA

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