ETHICAL COMPLIANCE REPORT

RAMA STEEL TUBES

Sector:

Basic Materials

Industry:

Steel

Overall Compliance

compliant

compliant

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.

0.1%

Non Compliant
Questionable
Compliant

CALCULATION

Revenue Ratio:15330000.0010508295000.00×100=0.10%\textbf{Revenue Ratio:} \\[12pt] \dfrac{15330000.00}{10508295000.00} \times 100 = 0.10\%

FORMULA

Revenue Ratio:Unethical SegmentsTotal Revenue×100  ≤  3%\textbf{Revenue Ratio:} \\[12pt] \dfrac{\text{Unethical Segments}}{\text{Total Revenue}} \times 100 \; \leq \; 3\%
SegmentComplianceValue
Dividend income
questionable
questionable		₹0.00
Other Income
compliant
compliant		₹2.79
Pipes & Tubes
compliant
compliant		₹1,039.05
Other Operating Revenue
compliant
compliant		₹7.45
Interest Income
non-compliant
non-compliant		₹1.53

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.

19.7%

CALCULATION

Debt Ratio:1443499000.007343630000.00×100=19.70%\textbf{Debt Ratio:} \\[12pt] \dfrac{1443499000.00}{7343630000.00} \times 100 = 19.70\%

FORMULA

Debt Ratio:Interest Bearing DebtTotal Assets×100  ≤  30%\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.

2.4%

CALCULATION

Liquidity Ratio:174055000.007343630000.00×100=2.40%\textbf{Liquidity Ratio:} \\[12pt] \dfrac{174055000.00}{7343630000.00} \times 100 = 2.40\%

FORMULA

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