ETHICAL COMPLIANCE REPORT

PANAMA PETROCHEM

Sector:

Energy

Industry:

Oil & Gas Refining & Marketing

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.

0.2%

Non Compliant
Questionable
Compliant

CALCULATION

Revenue Ratio:57000000.0023712200000.00×100=0.20%\textbf{Revenue Ratio:} \\[12pt] \dfrac{57000000.00}{23712200000.00} \times 100 = 0.20\%

FORMULA

Revenue Ratio:Unethical SegmentsTotal Revenue×100  ≤  3%\textbf{Revenue Ratio:} \\[12pt] \dfrac{\text{Unethical Segments}}{\text{Total Revenue}} \times 100 \; \leq \; 3\%
SegmentComplianceValue
Petroleum specialities
compliant
compliant		₹2,356.74
Interest Income
non-compliant
non-compliant		₹4.80
Net Gain on Sale of Investments
questionable
questionable		₹0.90
Other Income
compliant
compliant		₹8.78

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.

1.8%

CALCULATION

Debt Ratio:254900000.0014093700000.00×100=1.80%\textbf{Debt Ratio:} \\[12pt] \dfrac{254900000.00}{14093700000.00} \times 100 = 1.80\%

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.

9.4%

CALCULATION

Liquidity Ratio:1331700000.0014093700000.00×100=9.40%\textbf{Liquidity Ratio:} \\[12pt] \dfrac{1331700000.00}{14093700000.00} \times 100 = 9.40\%

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\%