ETHICAL COMPLIANCE REPORT

GUJ STATE FERT & CHEM

Sector:

Basic Materials

Industry:

Agricultural Inputs

Overall Compliance

questionable

PRIMARY BUSINESS FILTER
Fertilizers & Agro Chemicals
compliant
REVENUE RATIO FILTER
3.2%
View Calculations
DEBT RATIO FILTER
0%
View Calculations
LIQUIDITY RATIO FILTER
15.3%
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.

3.2%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{3033812000.00}{95315367000.00} \times 100 = 3.20\%

FORMULA

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

Segment	Compliance	Value
Sale of Chemicals & Agro Products	compliant	₹9,138.74
Other Operating Income	compliant	₹7.10
Sale of Service	compliant	₹8.80
Dividend income	questionable	₹146.54
Interest Income	non-compliant	₹156.85
Other Income	compliant	₹73.51

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.

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{25045000.00}{150506900000.00} \times 100 = 0.00\%

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.

15.3%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{23029652000.00}{150506900000.00} \times 100 = 15.30\%

FORMULA

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