ETHICAL COMPLIANCE REPORT

ACC

Sector:

Basic Materials

Industry:

Building Materials

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Cement Company
compliant
REVENUE RATIO FILTER
2.2%
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DEBT RATIO FILTER
0%
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LIQUIDITY RATIO FILTER
8%
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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.

2.2%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{4520900000.00}{205384400000.00} \times 100 = 2.20\%

FORMULA

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

Segment	Compliance	Value
Sale of Cement	compliant	₹16,148.62
Income From Services Rendered	compliant	₹3,390.55
Provision No Longer Required Written Back	compliant	₹34.41
Other Income	compliant	₹385.34
Interest income	non-compliant	₹452.09
Net gain on disposal of Property	compliant	₹96.30
Other non-operating income	compliant	₹31.13

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.

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{0.00}{233856400000.00} \times 100 = 0.00\%

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{18628700000.00}{233856400000.00} \times 100 = 8.00\%

FORMULA

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