ETHICAL COMPLIANCE REPORT

SHILPA MEDICARE

Sector:

Healthcare

Industry:

Drug Manufacturers - Specialty & Generic

Overall Compliance

questionable

PRIMARY BUSINESS FILTER
Pharmaceuticals
compliant
REVENUE RATIO FILTER
0.1%
View Calculations
DEBT RATIO FILTER
30.2%
View Calculations
LIQUIDITY RATIO FILTER
1%
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.

0.1%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{13841000.00}{11597736000.00} \times 100 = 0.10\%

FORMULA

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

Segment	Compliance	Value
Pharmaceutical Products	compliant	₹931.57
Export Incentives/Sale of license	compliant	₹0.77
Energy sales	compliant	₹3.00
Interest Income	non-compliant	₹1.38
Product development & License fees	compliant	₹216.27
Other Income	compliant	₹6.79

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.

30.2%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{9355872000.00}{30932046000.00} \times 100 = 30.20\%

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.

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{304355000.00}{30932046000.00} \times 100 = 1.00\%

FORMULA

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