ETHICAL COMPLIANCE REPORT

GHCL

GHCL Logo

Sector:

Basic Materials

Industry:

Chemicals

Overall Compliance

compliant

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.

2.3%

Non Compliant
Questionable
Compliant

CALCULATION

Revenue Ratio:767200000.0032712200000.00×100=2.30%\textbf{Revenue Ratio:} \\[12pt] \dfrac{767200000.00}{32712200000.00} \times 100 = 2.30\%

FORMULA

Revenue Ratio:Unethical SegmentsTotal Revenue×100  ≤  3%\textbf{Revenue Ratio:} \\[12pt] \dfrac{\text{Unethical Segments}}{\text{Total Revenue}} \times 100 \; \leq \; 3\%
SegmentComplianceValue
Interest income
non-compliant
non-compliant		₹33.50
Soda Ash & consumer products
compliant
compliant		₹3,176.40
Investment Gain
questionable
questionable		₹43.22
Other Income
compliant
compliant		₹18.10

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.

2.4%

CALCULATION

Debt Ratio:1017100000.0041853900000.00×100=2.40%\textbf{Debt Ratio:} \\[12pt] \dfrac{1017100000.00}{41853900000.00} \times 100 = 2.40\%

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.

10.7%

CALCULATION

Liquidity Ratio:4459000000.0041853900000.00×100=10.70%\textbf{Liquidity Ratio:} \\[12pt] \dfrac{4459000000.00}{41853900000.00} \times 100 = 10.70\%

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\%