ETHICAL COMPLIANCE REPORT

PRAJ INDUSTRIES

Sector:

Industrials

Industry:

Engineering & Construction

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Production of Ethanol
compliant
REVENUE RATIO FILTER
1.2%
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DEBT RATIO FILTER
0%
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LIQUIDITY RATIO FILTER
7.3%
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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.

1.2%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{428080000.00}{35097774000.00} \times 100 = 1.20\%

FORMULA

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

Segment	Compliance	Value
Sale of Bioenergy , Water & Others	compliant	₹3,065.44
Sale of services	compliant	₹352.00
Other Operating Revenue	compliant	₹48.84
interest Income	non-compliant	₹16.35
investment gain	questionable	₹26.46
other income	compliant	₹0.69

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.

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{0.00}{28954415000.00} \times 100 = 0.00\%

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.

7.3%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{2127060000.00}{28954415000.00} \times 100 = 7.30\%

FORMULA

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