ETHICAL COMPLIANCE REPORT

PARADEEP PHOSPHATES

Sector:

Basic Materials

Industry:

Agricultural Inputs

Overall Compliance

non-compliant

PRIMARY BUSINESS FILTER
Manufacturer of Non-urea Fertilizers
compliant
REVENUE RATIO FILTER
0.1%
View Calculations
DEBT RATIO FILTER
41.3%
View Calculations
LIQUIDITY RATIO FILTER
1.2%
View Calculations

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.

0.1%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{62586000.00}{116439549000.00} \times 100 = 0.10\%

FORMULA

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

Segment	Compliance	Value
Sale of Chemical Products	compliant	₹5,643.31
Subsidy From the Government	compliant	₹5,919.75
Scrap Sales	compliant	₹12.06
Interest Income	non-compliant	₹6.26
Other Income	compliant	₹62.58

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.

41.3%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{39943754000.00}{96611253000.00} \times 100 = 41.30\%

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.

1.2%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{1180236000.00}{96611253000.00} \times 100 = 1.20\%

FORMULA

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