ETHICAL COMPLIANCE REPORT

KNR CONSTRU.

Sector:

Industrials

Industry:

Engineering & Construction

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Construction
compliant
REVENUE RATIO FILTER
2.6%
View Calculations
DEBT RATIO FILTER
21.7%
View Calculations
LIQUIDITY RATIO FILTER
7.1%
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.

2.6%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{1209968000.00}{45741773000.00} \times 100 = 2.60\%

FORMULA

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

Segment	Compliance	Value
Income From Contracts & Services	compliant	₹4,020.67
Construction Income	compliant	₹43.15
Other Operating Income	compliant	₹365.67
Investment Gain	questionable	₹2.06
Interest Income	non-compliant	₹118.94
Other Income	compliant	₹23.69

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.

21.7%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{12582206000.00}{58037875000.00} \times 100 = 21.70\%

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.

7.1%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{4108922000.00}{58037875000.00} \times 100 = 7.10\%

FORMULA

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