ETHICAL COMPLIANCE REPORT

RAMCO INDUSTRIES

Sector:

Industrials

Industry:

Building Products & Equipment

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Cement
compliant
REVENUE RATIO FILTER
0.6%
View Calculations
DEBT RATIO FILTER
5.3%
View Calculations
LIQUIDITY RATIO FILTER
1.9%
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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.

0.6%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{88613000.00}{15156241000.00} \times 100 = 0.60\%

FORMULA

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

Segment	Compliance	Value
Building & Textile Products	compliant	₹1,493.70
Other Operating Revenue	compliant	₹7.63
Dividend income	questionable	₹0.05
Interest Income	non-compliant	₹8.81
Other Income	compliant	₹5.44

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.

5.3%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{2415649000.00}{45752022000.00} \times 100 = 5.30\%

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.

1.9%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{870088000.00}{45752022000.00} \times 100 = 1.90\%

FORMULA

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