ETHICAL COMPLIANCE REPORT

JK LAKSHMI CEMENT

Sector:

Basic Materials

Industry:

Building Materials

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Manufactures Cement and Related Products
compliant
REVENUE RATIO FILTER
1%
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DEBT RATIO FILTER
26.5%
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LIQUIDITY RATIO FILTER
3.5%
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{689000000.00}{68574000000.00} \times 100 = 1.00\%

FORMULA

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

Segment	Compliance	Value
Sale of Products - Cement	compliant	₹6,236.71
Sale of Products -clinker and Value Added Products (vap)	compliant	₹551.27
Other Operating Revenues	compliant	₹0.49
Other income	compliant	₹0.03
interest Income	non-compliant	₹68.90

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.

26.5%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{20248900000.00}{76500400000.00} \times 100 = 26.50\%

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.

3.5%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{2672500000.00}{76500400000.00} \times 100 = 3.50\%

FORMULA

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