ETHICAL COMPLIANCE REPORT

JAIN IRRIGATION SYSTEMS

Sector:

Industrials

Industry:

Farm & Heavy Construction Machinery

Overall Compliance

non-compliant

PRIMARY BUSINESS FILTER
Agriculture, piping and infrastructure
compliant
REVENUE RATIO FILTER
0.1%
View Calculations
DEBT RATIO FILTER
35.1%
View Calculations
LIQUIDITY RATIO FILTER
1%
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.

0.1%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{461900000.00}{615201900000.00} \times 100 = 0.10\%

FORMULA

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

Segment	Compliance	Value
Hi-tech Agri Input Products	compliant	₹20,046.00
Plastic Division	compliant	₹23,617.00
Agro Processing Division	compliant	₹17,473.00
Other Business Division	compliant	₹338.00
Other Income	non-compliant	₹46.19

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.

35.1%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{393283400000.00}{1119767300000.00} \times 100 = 35.10\%

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{10785300000.00}{1119767300000.00} \times 100 = 1.00\%

FORMULA

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