ETHICAL COMPLIANCE REPORT

RASHTRIYA CHEMICALS & FER

Sector:

Basic Materials

Industry:

Agricultural Inputs

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Chemical
compliant
REVENUE RATIO FILTER
0.4%
View Calculations
DEBT RATIO FILTER
23.4%
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.

0.4%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{624600000.00}{171979100000.00} \times 100 = 0.40\%

FORMULA

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

Segment	Compliance	Value
Other Income	compliant	₹154.14
Investment Gain	questionable	₹11.29
Other Operating Revenues	compliant	₹10,557.03
Subsidy on Urea & Complex Fertilizers	compliant	₹2,130.00
Interest Income	non-compliant	₹51.17
Sale of Fertilizer	compliant	₹2,585.63
Industrial Products	compliant	₹1,708.65

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.

23.4%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{26832500000.00}{114557200000.00} \times 100 = 23.40\%

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.

3.1%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{3529400000.00}{114557200000.00} \times 100 = 3.10\%

FORMULA

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