ETHICAL COMPLIANCE REPORT

SAGAR CEMENTS

Sector:

Basic Materials

Industry:

Building Materials

Overall Compliance

non-compliant

PRIMARY BUSINESS FILTER
Cement Manufacturing
compliant
REVENUE RATIO FILTER
1.8%
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DEBT RATIO FILTER
33%
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LIQUIDITY RATIO FILTER
6%
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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.

1.8%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{455000000.00}{25587300000.00} \times 100 = 1.80\%

FORMULA

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

Segment	Compliance	Value
Sale of Cement and Clinker	compliant	₹2,495.58
Sale of Power	compliant	₹2.67
Other Operating Revenue	compliant	₹6.36
Interest income	non-compliant	₹13.61
Net Gain on Sale of Investments	questionable	₹31.89
Other Income	compliant	₹8.62

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.

33%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{14390400000.00}{43562100000.00} \times 100 = 33.00\%

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{2621200000.00}{43562100000.00} \times 100 = 6.00\%

FORMULA

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