ETHICAL COMPLIANCE REPORT

PRISM JOHNSON

Sector:

Basic Materials

Industry:

Building Materials

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Building Material
compliant
REVENUE RATIO FILTER
0.4%
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DEBT RATIO FILTER
18.8%
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LIQUIDITY RATIO FILTER
7.1%
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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.

0.4%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{270500000.00}{76379400000.00} \times 100 = 0.40\%

FORMULA

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

Segment	Compliance	Value
Scrap Sales	compliant	₹15.87
interest Income	non-compliant	₹24.61
investment gain	questionable	₹2.44
Other Income	compliant	₹7.51
Sale of Services	compliant	₹122.70
Other Operating Revenue	compliant	₹193.33
Building material	compliant	₹7,271.48

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.

18.8%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{13332400000.00}{70894800000.00} \times 100 = 18.80\%

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.

7.1%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{5060200000.00}{70894800000.00} \times 100 = 7.10\%

FORMULA

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