ETHICAL COMPLIANCE REPORT

DCM SHRIRAM

DCM SHRIRAM Logo

Sector:

Basic Materials

Industry:

Specialty Chemicals

Overall Compliance

non-compliant

non-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.

0.7%

Non Compliant
Questionable
Compliant

CALCULATION

Revenue Ratio:763900000.00115298300000.00×100=0.70%\textbf{Revenue Ratio:} \\[12pt] \dfrac{763900000.00}{115298300000.00} \times 100 = 0.70\%

FORMULA

Revenue Ratio:Unethical SegmentsTotal Revenue×100    3%\textbf{Revenue Ratio:} \\[12pt] \dfrac{\text{Unethical Segments}}{\text{Total Revenue}} \times 100 \; \leq \; 3\%
SegmentComplianceValue
Industrial Products
compliant
compliant
₹11,373.93
Other operating revenue
compliant
compliant
₹57.36
other income
compliant
compliant
₹22.15
interest & other
non-compliant
non-compliant
₹76.39

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.

100%

CALCULATION

Debt Ratio:20826300000.0020826300000.00×100=100.00%\textbf{Debt Ratio:} \\[12pt] \dfrac{20826300000.00}{20826300000.00} \times 100 = 100.00\%

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.

32.3%

CALCULATION

Liquidity Ratio:6722200000.0020826300000.00×100=32.30%\textbf{Liquidity Ratio:} \\[12pt] \dfrac{6722200000.00}{20826300000.00} \times 100 = 32.30\%

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\%