ETHICAL COMPLIANCE REPORT

ZYDUS LIFESCIENCES

Sector:

Healthcare

Industry:

Drug Manufacturers - Specialty & Generic

Overall Compliance

compliant

compliant

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.

1.3%

Non Compliant
Questionable
Compliant

CALCULATION

Revenue Ratio:2666000000.00198315000000.00×100=1.30%\textbf{Revenue Ratio:} \\[12pt] \dfrac{2666000000.00}{198315000000.00} \times 100 = 1.30\%

FORMULA

Revenue Ratio:Unethical SegmentsTotal Revenue×100  ≤  3%\textbf{Revenue Ratio:} \\[12pt] \dfrac{\text{Unethical Segments}}{\text{Total Revenue}} \times 100 \; \leq \; 3\%
SegmentComplianceValue
Other operating revenue
compliant
compliant		₹525.90
interest & dividend
non-compliant
non-compliant		₹266.60
Pharmaceuticals
compliant
compliant		₹19,021.50
Others
compliant
compliant		₹17.50

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.

0%

CALCULATION

Debt Ratio:105000000.00292808000000.00×100=0.00%\textbf{Debt Ratio:} \\[12pt] \dfrac{105000000.00}{292808000000.00} \times 100 = 0.00\%

FORMULA

Debt Ratio:Interest Bearing DebtTotal Assets×100  ≤  30%\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.

3.8%

CALCULATION

Liquidity Ratio:11051000000.00292808000000.00×100=3.80%\textbf{Liquidity Ratio:} \\[12pt] \dfrac{11051000000.00}{292808000000.00} \times 100 = 3.80\%

FORMULA

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