ETHICAL COMPLIANCE REPORT

NAVNEET EDUCATION

Sector:

Communication Services

Industry:

Publishing

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Publishing and Stationery.
compliant
REVENUE RATIO FILTER
0.3%
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DEBT RATIO FILTER
14%
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LIQUIDITY RATIO FILTER
1.4%
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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.

0.3%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{53200000.00}{17646800000.00} \times 100 = 0.30\%

FORMULA

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

Segment	Compliance	Value
Interest income	non-compliant	₹1.89
Net Gain on Sale of Investments	questionable	₹3.43
Other Income	compliant	₹8.09
Sale of Publishing & Stationary Products	compliant	₹1,708.56
Sale of services	compliant	₹13.97
Other Income	compliant	₹28.74

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.

14%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{2451100000.00}{17472200000.00} \times 100 = 14.00\%

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.

1.4%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{247100000.00}{17472200000.00} \times 100 = 1.40\%

FORMULA

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