ETHICAL COMPLIANCE REPORT

SUN PHARMA ADV.RES.CO.LTD

Sector:

Healthcare

Industry:

Drug Manufacturers - Specialty & Generic

Overall Compliance

non-compliant

PRIMARY BUSINESS FILTER
Pharmaceuticals
compliant
REVENUE RATIO FILTER
27.3%
View Calculations
DEBT RATIO FILTER
9.1%
View Calculations
LIQUIDITY RATIO FILTER
30.2%
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.

27.3%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{286564000.00}{1050146000.00} \times 100 = 27.30\%

FORMULA

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

Segment	Compliance	Value
Sale of Services - Licence Fees / Royalty on Technology / R&d Services	compliant	₹75.55
Other Income	compliant	₹0.81
interest & other	non-compliant	₹28.66

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.

9.1%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{470000000.00}{5150400000.00} \times 100 = 9.10\%

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.

30.2%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{1553295000.00}{5150400000.00} \times 100 = 30.20\%

FORMULA

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