ETHICAL COMPLIANCE REPORT

KALYANI STEELS

Sector:

Basic Materials

Industry:

Steel

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Steel and Iron
compliant
REVENUE RATIO FILTER
2.3%
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DEBT RATIO FILTER
23.2%
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LIQUIDITY RATIO FILTER
21.4%
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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.

2.3%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{454140000.00}{20063840000.00} \times 100 = 2.30\%

FORMULA

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

Segment	Compliance	Value
Other Operating Revenue	compliant	₹29.89
Rolled Products	compliant	₹15.79
Steel and Iron Products	compliant	₹1,913.88
Interest income	non-compliant	₹44.92
Net Gain on Sale of Investments	questionable	₹0.49
Other Income	compliant	₹1.42

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.

23.2%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{5962360000.00}{25733170000.00} \times 100 = 23.20\%

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.

21.4%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{5500290000.00}{25733170000.00} \times 100 = 21.40\%

FORMULA

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