ETHICAL COMPLIANCE REPORT

JAI CORP

Sector:

Basic Materials

Industry:

Specialty Chemicals

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
manufacturing
compliant
REVENUE RATIO FILTER
1.9%
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DEBT RATIO FILTER
0%
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LIQUIDITY RATIO FILTER
0.6%
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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.

1.9%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{95603000.00}{4997490000.00} \times 100 = 1.90\%

FORMULA

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

Segment	Compliance	Value
Plastic Processing	compliant	₹457.58
Steel	compliant	₹0.26
Real Estate Projects	compliant	₹5.22
Interest income	non-compliant	₹4.27
Net Gain on Sale of Investments	questionable	₹5.29
Other Income	compliant	₹27.13

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{0.00}{15534302000.00} \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.

0.6%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{89707000.00}{15534302000.00} \times 100 = 0.60\%

FORMULA

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