ETHICAL COMPLIANCE REPORT

KCP

Sector:

Basic Materials

Industry:

Building Materials

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Cement & Others
compliant
REVENUE RATIO FILTER
2.2%
View Calculations
DEBT RATIO FILTER
16.9%
View Calculations
LIQUIDITY RATIO FILTER
32.4%
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.

2.2%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{629600000.00}{29097400000.00} \times 100 = 2.20\%

FORMULA

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

Segment	Compliance	Value
Cement	compliant	₹1,581.76
Sugar	compliant	₹1,141.15
Engineering Equipments	compliant	₹65.73
Engineering Job works	compliant	₹14.84
Hospitality services	compliant	₹36.84
Interest income	non-compliant	₹60.87
Net Gain on Sale of Investments	questionable	₹2.09
Scrap Sales	compliant	₹6.46

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.

16.9%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{4776900000.00}{28286500000.00} \times 100 = 16.90\%

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.

32.4%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{9156600000.00}{28286500000.00} \times 100 = 32.40\%

FORMULA

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