ETHICAL COMPLIANCE REPORT

BIRLA CORPORATION

Sector:

Basic Materials

Industry:

Building Materials

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Cement
compliant
REVENUE RATIO FILTER
0.5%
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DEBT RATIO FILTER
26.1%
View Calculations
LIQUIDITY RATIO FILTER
1.1%
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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.

0.5%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{464200000.00}{97482900000.00} \times 100 = 0.50\%

FORMULA

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

Segment	Compliance	Value
Other operating revenue	compliant	₹186.24
Other Income	compliant	₹39.15
Cement	compliant	₹9,064.38
Jute	compliant	₹411.48
Others	compliant	₹0.62
interest & other	non-compliant	₹46.42

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.

26.1%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{37697300000.00}{144361700000.00} \times 100 = 26.10\%

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.

1.1%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{1592100000.00}{144361700000.00} \times 100 = 1.10\%

FORMULA

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