ETHICAL COMPLIANCE REPORT

RAM RATNA WIRES

Sector:

Industrials

Industry:

Electrical Equipment & Parts

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Electrical Components
compliant
REVENUE RATIO FILTER
0.3%
View Calculations
DEBT RATIO FILTER
23.9%
View Calculations
LIQUIDITY RATIO FILTER
3.1%
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.

0.3%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{86231000.00}{29982534000.00} \times 100 = 0.30\%

FORMULA

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

Segment	Compliance	Value
Electrical Components	compliant	₹2,976.10
Other Operating Revenue	compliant	₹7.14
Interest income	non-compliant	₹4.89
Net Gain on Sale of Investments	questionable	₹3.74
Other Income	compliant	₹6.38

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.

23.9%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{2275950000.00}{9534975000.00} \times 100 = 23.90\%

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.

3.1%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{291331000.00}{9534975000.00} \times 100 = 3.10\%

FORMULA

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