ETHICAL COMPLIANCE REPORT

NAVA

Sector:

Industrials

Industry:

Conglomerates

Overall Compliance

compliant

compliant

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.

2.4%

Non Compliant
Questionable
Compliant

CALCULATION

Revenue Ratio:944931000.0039550284000.00×100=2.40%\textbf{Revenue Ratio:} \\[12pt] \dfrac{944931000.00}{39550284000.00} \times 100 = 2.40\%

FORMULA

Revenue Ratio:Unethical SegmentsTotal Revenue×100  ≤  3%\textbf{Revenue Ratio:} \\[12pt] \dfrac{\text{Unethical Segments}}{\text{Total Revenue}} \times 100 \; \leq \; 3\%
SegmentComplianceValue
Ferro alloys, Power, Coal
compliant
compliant		₹3,801.96
Other Operating Revenue
compliant
compliant		₹16.16
Investment gain
questionable
questionable		₹25.86
Interest Income
non-compliant
non-compliant		₹68.63
other income
compliant
compliant		₹42.42

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.

4.2%

CALCULATION

Debt Ratio:4086053000.0096980973000.00×100=4.20%\textbf{Debt Ratio:} \\[12pt] \dfrac{4086053000.00}{96980973000.00} \times 100 = 4.20\%

FORMULA

Debt Ratio:Interest Bearing DebtTotal Assets×100  ≤  30%\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.

3.2%

CALCULATION

Liquidity Ratio:3069545000.0096980973000.00×100=3.20%\textbf{Liquidity Ratio:} \\[12pt] \dfrac{3069545000.00}{96980973000.00} \times 100 = 3.20\%

FORMULA

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