ETHICAL COMPLIANCE REPORT

NMDC STEEL

Sector:

Basic Materials

Industry:

Steel

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.

1.3%

Non Compliant
Questionable
Compliant

CALCULATION

Revenue Ratio:413800000.0031682800000.00×100=1.30%\textbf{Revenue Ratio:} \\[12pt] \dfrac{413800000.00}{31682800000.00} \times 100 = 1.30\%

FORMULA

Revenue Ratio:Unethical SegmentsTotal Revenue×100  ≤  3%\textbf{Revenue Ratio:} \\[12pt] \dfrac{\text{Unethical Segments}}{\text{Total Revenue}} \times 100 \; \leq \; 3\%
SegmentComplianceValue
Steel Products
compliant
compliant		₹3,048.99
Other Income
compliant
compliant		₹77.91
Interest Income
non-compliant
non-compliant		₹41.38

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.

22.6%

CALCULATION

Debt Ratio:66517700000.00293683200000.00×100=22.60%\textbf{Debt Ratio:} \\[12pt] \dfrac{66517700000.00}{293683200000.00} \times 100 = 22.60\%

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.

2.5%

CALCULATION

Liquidity Ratio:7213200000.00293683200000.00×100=2.50%\textbf{Liquidity Ratio:} \\[12pt] \dfrac{7213200000.00}{293683200000.00} \times 100 = 2.50\%

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\%