ETHICAL COMPLIANCE REPORT

RITES

Sector:

Industrials

Industry:

Engineering & Construction

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Transport consultancy
compliant
REVENUE RATIO FILTER
2.7%
View Calculations
DEBT RATIO FILTER
0.1%
View Calculations
LIQUIDITY RATIO FILTER
55.5%
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.

2.7%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{682500000.00}{25389700000.00} \times 100 = 2.70\%

FORMULA

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

Segment	Compliance	Value
Consultancy & Other Service	compliant	₹2,443.82
Other Operating Income	compliant	₹9.03
Dividend income	questionable	₹0.01
Interest Income	non-compliant	₹68.24
Other Income	compliant	₹17.87

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.

0.1%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{80000000.00}{56614400000.00} \times 100 = 0.10\%

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.

55.5%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{31413300000.00}{56614400000.00} \times 100 = 55.50\%

FORMULA

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