ETHICAL COMPLIANCE REPORT

AARTI INDUSTRIES

Sector:

Basic Materials

Industry:

Specialty Chemicals

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.

0.1%

Non Compliant
Questionable
Compliant

CALCULATION

Revenue Ratio:8030000.006355590000.00×100=0.10%\textbf{Revenue Ratio:} \\[12pt] \dfrac{8030000.00}{6355590000.00} \times 100 = 0.10\%

FORMULA

Revenue Ratio:Unethical SegmentsTotal Revenue×100  ≤  3%\textbf{Revenue Ratio:} \\[12pt] \dfrac{\text{Unethical Segments}}{\text{Total Revenue}} \times 100 \; \leq \; 3\%
SegmentComplianceValue
Speciality Chemicals
compliant
compliant		₹634.72
Other Income
compliant
compliant		₹0.04
interest & other
non-compliant
non-compliant		₹0.80

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.

3.3%

CALCULATION

Debt Ratio:3182960000.0096160000000.00×100=3.30%\textbf{Debt Ratio:} \\[12pt] \dfrac{3182960000.00}{96160000000.00} \times 100 = 3.30\%

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.

0%

CALCULATION

Liquidity Ratio:12510000.0096160000000.00×100=0.00%\textbf{Liquidity Ratio:} \\[12pt] \dfrac{12510000.00}{96160000000.00} \times 100 = 0.00\%

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\%