ETHICAL COMPLIANCE REPORT

INDIGO PAINTS

Sector:

Basic Materials

Industry:

Specialty Chemicals

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Manufactures Paint
compliant
REVENUE RATIO FILTER
1%
View Calculations
DEBT RATIO FILTER
0.2%
View Calculations
LIQUIDITY RATIO FILTER
2.6%
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.

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{129639000.00}{13203022000.00} \times 100 = 1.00\%

FORMULA

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

Segment	Compliance	Value
Interest income	non-compliant	₹0.19
Sale of Paints & service	compliant	₹1,300.38
Other Operating Revenue	compliant	₹5.70
Net Gain on Sale of Investments	questionable	₹12.78
Other Income	compliant	₹1.25

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.

0.2%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{30807000.00}{12704269000.00} \times 100 = 0.20\%

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.

2.6%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{329317000.00}{12704269000.00} \times 100 = 2.60\%

FORMULA

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