ETHICAL COMPLIANCE REPORT

RAMKRISHNA FORGINGS

Sector:

Industrials

Industry:

Tools & Accessories

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.

0.3%

Non Compliant
Questionable
Compliant

CALCULATION

Revenue Ratio:136507000.0039838041000.00×100=0.30%\textbf{Revenue Ratio:} \\[12pt] \dfrac{136507000.00}{39838041000.00} \times 100 = 0.30\%

FORMULA

Revenue Ratio:Unethical SegmentsTotal Revenue×100  ≤  3%\textbf{Revenue Ratio:} \\[12pt] \dfrac{\text{Unethical Segments}}{\text{Total Revenue}} \times 100 \; \leq \; 3\%
SegmentComplianceValue
Forged Components
compliant
compliant		₹3,323.34
Sale of services
compliant
compliant		₹631.54
Interest Income
non-compliant
non-compliant		₹13.65
Other income
compliant
compliant		₹15.27

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.

21.1%

CALCULATION

Debt Ratio:11183655000.0053080296000.00×100=21.10%\textbf{Debt Ratio:} \\[12pt] \dfrac{11183655000.00}{53080296000.00} \times 100 = 21.10\%

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.

19.3%

CALCULATION

Liquidity Ratio:10230665000.0053080296000.00×100=19.30%\textbf{Liquidity Ratio:} \\[12pt] \dfrac{10230665000.00}{53080296000.00} \times 100 = 19.30\%

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\%