ETHICAL COMPLIANCE REPORT

RHI MAGNESITA INDIA

Sector:

Industrials

Industry:

Metal Fabrication

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Refractory Products
compliant
REVENUE RATIO FILTER
0.1%
View Calculations
DEBT RATIO FILTER
7.1%
View Calculations
LIQUIDITY RATIO FILTER
1%
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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.

0.1%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{40786000.00}{37920666000.00} \times 100 = 0.10\%

FORMULA

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

Segment	Compliance	Value
Sale of Products - Industrial Products	compliant	₹2,440.64
Sale of Service	compliant	₹63.46
Sale of Service -total Refractories Management Services	compliant	₹1,230.49
Other Income	compliant	₹6.88
Other Operating Revenues	compliant	₹46.51
Interest Income	non-compliant	₹4.08

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.

7.1%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{3625847000.00}{51155271000.00} \times 100 = 7.10\%

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.

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{532600000.00}{51155271000.00} \times 100 = 1.00\%

FORMULA

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