ETHICAL COMPLIANCE REPORT

CHAMBAL FERTILIZERS

Sector:

Basic Materials

Industry:

Agricultural Inputs

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Urea Production
compliant
REVENUE RATIO FILTER
1%
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DEBT RATIO FILTER
16.1%
View Calculations
LIQUIDITY RATIO FILTER
1.2%
View Calculations

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.

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{1868000000.00}{182155100000.00} \times 100 = 1.00\%

FORMULA

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

Segment	Compliance	Value
Manufactured Fertilizers	compliant	₹12,722.65
Traded Fertilizers	compliant	₹5,224.98
Others (spillage)	compliant	₹18.78
Other Income	compliant	₹62.30
interest & other	questionable	₹186.80

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.

16.1%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{18535500000.00}{115089700000.00} \times 100 = 16.10\%

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.

1.2%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{1328900000.00}{115089700000.00} \times 100 = 1.20\%

FORMULA

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