ETHICAL COMPLIANCE REPORT

FINOLEX INDUSTRIES

Sector:

Industrials

Industry:

Building Products & Equipment

Overall Compliance

questionable

PRIMARY BUSINESS FILTER
Pipes Manufacturer
compliant
DEBT RATIO FILTER
5.4%
View Calculations
LIQUIDITY RATIO FILTER
0.4%
View Calculations
REVENUE RATIO FILTER
3.7%
View Calculations

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.

5.4%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{3819500000.00}{70578500000.00} \times 100 = 5.40\%

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.

0.4%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{316500000.00}{70578500000.00} \times 100 = 0.40\%

FORMULA

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

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.

3.7%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{1680100000.00}{44973800000.00} \times 100 = 3.70\%

FORMULA

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

Segment	Compliance	Value
sale of pipes and fittings and PVC resin	compliant	₹4,274.10
Other Operating Income	compliant	₹43.33
Interest Income	non-compliant	₹33.92
Investment Gain	questionable	₹134.09
Other Income	compliant	₹11.94