ETHICAL COMPLIANCE REPORT

RAIN INDUSTRIES

Sector:

Basic Materials

Industry:

Chemicals

Overall Compliance

non-compliant

PRIMARY BUSINESS FILTER
Vertically Integrated Producer of Carbon, Cement and Advanced Materials Products
compliant
REVENUE RATIO FILTER
0.6%
View Calculations
DEBT RATIO FILTER
43.4%
View Calculations
LIQUIDITY RATIO FILTER
10%
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.

0.6%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{1051330000.00}{211161300000.00} \times 100 = 0.60\%

FORMULA

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

Segment	Compliance	Value
Sale of Carbon, Cement and Advanced Materials Products	compliant	₹20,904.26
Job Work Income	compliant	₹1.94
Scrap Sales	compliant	₹2.20
Rental Income	compliant	₹21.44
Insurance Claims	compliant	₹21.95
Dock Revenue	compliant	₹20.31
Others	compliant	₹38.90
Other Income	questionable	₹105.13

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.

43.4%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{86901770000.00}{200088940000.00} \times 100 = 43.40\%

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.

10%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{20084930000.00}{200088940000.00} \times 100 = 10.00\%

FORMULA

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