ETHICAL COMPLIANCE REPORT

SMS PHARMACEUTICALS.

Sector:

Healthcare

Industry:

Drug Manufacturers - General

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Health Care
compliant
REVENUE RATIO FILTER
0.4%
View Calculations
DEBT RATIO FILTER
27.2%
View Calculations
LIQUIDITY RATIO FILTER
3.5%
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.

0.4%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{26182000.00}{5250720000.00} \times 100 = 0.40\%

FORMULA

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

Segment	Compliance	Value
Export Incentives	compliant	₹4.86
Revenue From Sales	compliant	₹507.19
Revenue From Services	compliant	₹7.83
Net Gain on Foreign Exchange 257.95	compliant	₹2.58
)miscellaneous Income	questionable	₹2.06
Interest Income	non-compliant	₹0.56

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.

27.2%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{2807705000.00}{10340926000.00} \times 100 = 27.20\%

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.

3.5%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{362025000.00}{10340926000.00} \times 100 = 3.50\%

FORMULA

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