ETHICAL COMPLIANCE REPORT

JAYASWAL NECO INDUSTR

Sector:

Basic Materials

Industry:

Steel

Overall Compliance

non-compliant

non-compliant

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

Revenue Ratio:74485000.0059422064000.00×100=0.10%\textbf{Revenue Ratio:} \\[12pt] \dfrac{74485000.00}{59422064000.00} \times 100 = 0.10\%

FORMULA

Revenue Ratio:Unethical SegmentsTotal Revenue×100  ≤  3%\textbf{Revenue Ratio:} \\[12pt] \dfrac{\text{Unethical Segments}}{\text{Total Revenue}} \times 100 \; \leq \; 3\%
SegmentComplianceValue
Iron and Steel Castings & Others
compliant
compliant		₹5,923.76
Interest Income
non-compliant
non-compliant		₹7.44
Investment Gain
questionable
questionable		₹0.01
Other Income
compliant
compliant		₹11.00

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.

52.5%

CALCULATION

Debt Ratio:32051093000.0061004817000.00×100=52.50%\textbf{Debt Ratio:} \\[12pt] \dfrac{32051093000.00}{61004817000.00} \times 100 = 52.50\%

FORMULA

Debt Ratio:Interest Bearing DebtTotal Assets×100  ≤  30%\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.

2.3%

CALCULATION

Liquidity Ratio:1401237000.0061004817000.00×100=2.30%\textbf{Liquidity Ratio:} \\[12pt] \dfrac{1401237000.00}{61004817000.00} \times 100 = 2.30\%

FORMULA

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