ETHICAL COMPLIANCE REPORT

MEGHMANI ORGANICS

Sector:

Basic Materials

Industry:

Agricultural Inputs

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Agrochemicals
compliant
REVENUE RATIO FILTER
0.7%
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DEBT RATIO FILTER
27.5%
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LIQUIDITY RATIO FILTER
0.7%
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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.

0.7%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{118311000.00}{16039638000.00} \times 100 = 0.70\%

FORMULA

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

Segment	Compliance	Value
Pigments	compliant	₹440.49
Agro Chemicals	compliant	₹1,066.71
Others	compliant	₹41.25
Other Operating Revenue	compliant	₹17.83
Interest Income	non-compliant	₹0.76
Dividend	questionable	₹11.07
Other Income	compliant	₹25.85

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.

27.5%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{8349411000.00}{30401408000.00} \times 100 = 27.50\%

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.

0.7%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{202605000.00}{30401408000.00} \times 100 = 0.70\%

FORMULA

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