ETHICAL COMPLIANCE REPORT

JSW STEEL

Sector:

Basic Materials

Industry:

Steel

Overall Compliance

non-compliant

PRIMARY BUSINESS FILTER
Steel Manufacturer
compliant
REVENUE RATIO FILTER
0.5%
View Calculations
DEBT RATIO FILTER
37.5%
View Calculations
LIQUIDITY RATIO FILTER
5.4%
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.

0.5%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{9100000000.00}{1760090000000.00} \times 100 = 0.50\%

FORMULA

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

Segment	Compliance	Value
steel products	compliant	₹1,72,588.00
Other operating revenues	compliant	₹2,418.00
Interest Income	non-compliant	₹796.00
dividend	questionable	₹21.00
Miscellaneous income	compliant	₹93.00
other gain	questionable	₹93.00

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.

37.5%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{855750000000.00}{2281980000000.00} \times 100 = 37.50\%

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.

5.4%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{123480000000.00}{2281980000000.00} \times 100 = 5.40\%

FORMULA

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