ETHICAL COMPLIANCE REPORT

NMDC.

NMDC. Logo

Sector:

Basic Materials

Industry:

Steel

Overall Compliance

questionable

questionable

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.

4.6%

Non Compliant
Questionable
Compliant

CALCULATION

Revenue Ratio:10341000000.00226787300000.00×100=4.60%\textbf{Revenue Ratio:} \\[12pt] \dfrac{10341000000.00}{226787300000.00} \times 100 = 4.60\%

FORMULA

Revenue Ratio:Unethical SegmentsTotal Revenue×100  ≤  3%\textbf{Revenue Ratio:} \\[12pt] \dfrac{\text{Unethical Segments}}{\text{Total Revenue}} \times 100 \; \leq \; 3\%
SegmentComplianceValue
Iron Ore
compliant
compliant		₹21,307.85
Interest Income
non-compliant
non-compliant		₹1,033.88
Dividend Income
questionable
questionable		₹0.22
Other Income
compliant
compliant		₹336.78

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.

9.4%

CALCULATION

Debt Ratio:33565400000.00356610300000.00×100=9.40%\textbf{Debt Ratio:} \\[12pt] \dfrac{33565400000.00}{356610300000.00} \times 100 = 9.40\%

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.

34.7%

CALCULATION

Liquidity Ratio:123685400000.00356610300000.00×100=34.70%\textbf{Liquidity Ratio:} \\[12pt] \dfrac{123685400000.00}{356610300000.00} \times 100 = 34.70\%

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\%