ETHICAL COMPLIANCE REPORT

GUJARAT ALKALIES & CHEM

Sector:

Basic Materials

Industry:

Chemicals

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Chemicals
compliant
REVENUE RATIO FILTER
2%
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DEBT RATIO FILTER
6.8%
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LIQUIDITY RATIO FILTER
2%
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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{782802000.00}{38966989000.00} \times 100 = 2.00\%

FORMULA

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

Segment	Compliance	Value
Chemicals	compliant	₹3,688.98
Sale of power	compliant	₹13.79
Interest Income	non-compliant	₹29.64
Other Operating Revenue	compliant	₹103.86
Investment Gain	questionable	₹48.64
Other Income	compliant	₹11.78

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.

6.8%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{5434300000.00}{80233908000.00} \times 100 = 6.80\%

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.

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{1617644000.00}{80233908000.00} \times 100 = 2.00\%

FORMULA

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