ETHICAL COMPLIANCE REPORT

PREMIER EXPLOSIVES

Sector:

Basic Materials

Industry:

Specialty Chemicals

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Manufacturing of Industrial Explosives and Detonators
compliant
REVENUE RATIO FILTER
0.5%
View Calculations
DEBT RATIO FILTER
13.9%
View Calculations
LIQUIDITY RATIO FILTER
6.6%
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.

0.5%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{12280000.00}{2019454000.00} \times 100 = 0.50\%

FORMULA

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

Segment	Compliance	Value
Sale of Products	compliant	₹174.69
Sale of Traded Goods	compliant	₹1.66
Sale of Services	compliant	₹22.26
Other Income	compliant	₹2.10
Other Operating Revenue	questionable	₹0.51
Other Non-operating Income	questionable	₹0.22
Interest Income	non-compliant	₹0.49

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.

13.9%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{614938000.00}{4419288000.00} \times 100 = 13.90\%

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.

6.6%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{292440000.00}{4419288000.00} \times 100 = 6.60\%

FORMULA

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