ETHICAL COMPLIANCE REPORT

CERA SANITARYWARE

Sector:

Industrials

Industry:

Building Products & Equipment

Overall Compliance

questionable

PRIMARY BUSINESS FILTER
Ceramics
compliant
REVENUE RATIO FILTER
3.1%
View Calculations
DEBT RATIO FILTER
1.1%
View Calculations
LIQUIDITY RATIO FILTER
2%
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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.

3.1%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{595049000.00}{19389167000.00} \times 100 = 3.10\%

FORMULA

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

Segment	Compliance	Value
building Products	compliant	₹1,865.81
Sale of Services	compliant	₹0.67
Other Operating Revenue	compliant	₹12.92
interest Income	non-compliant	₹4.41
investment gain	questionable	₹51.99
other income	questionable	₹3.11

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.

1.1%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{204613000.00}{18455253000.00} \times 100 = 1.10\%

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.

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{371971000.00}{18455253000.00} \times 100 = 2.00\%

FORMULA

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