ETHICAL COMPLIANCE REPORT

KESORAM INDUSTRIES

Sector:

Basic Materials

Industry:

Building Materials

Overall Compliance

non-compliant

PRIMARY BUSINESS FILTER
Cement, Rayon & Chemicals.
compliant
REVENUE RATIO FILTER
0.5%
View Calculations
DEBT RATIO FILTER
67.2%
View Calculations
LIQUIDITY RATIO FILTER
5.5%
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.

0.5%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{206400000.00}{40314800000.00} \times 100 = 0.50\%

FORMULA

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

Segment	Compliance	Value
Cement	compliant	₹3,736.10
Rayon, Transparent Paper and chemicals	compliant	₹246.32
Interest income	non-compliant	₹20.62
Net Gain on Sale of Investments	questionable	₹0.02
Other Income	compliant	₹28.42

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.

67.2%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{22673000000.00}{33761200000.00} \times 100 = 67.20\%

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.

5.5%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{1840000000.00}{33761200000.00} \times 100 = 5.50\%

FORMULA

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