ETHICAL COMPLIANCE REPORT

SARDA ENERGY & MIN

Sector:

Basic Materials

Industry:

Steel

Overall Compliance

questionable

questionable

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.

4.1%

Non Compliant
Questionable
Compliant

CALCULATION

Revenue Ratio:1671300000.0040523000000.00×100=4.10%\textbf{Revenue Ratio:} \\[12pt] \dfrac{1671300000.00}{40523000000.00} \times 100 = 4.10\%

FORMULA

Revenue Ratio:Unethical SegmentsTotal Revenue×100  ≤  3%\textbf{Revenue Ratio:} \\[12pt] \dfrac{\text{Unethical Segments}}{\text{Total Revenue}} \times 100 \; \leq \; 3\%
SegmentComplianceValue
steel, ferro alloys and power
compliant
compliant		₹3,868.13
Interest Income
non-compliant
non-compliant		₹83.09
Investment Gain
questionable
questionable		₹84.04
Other Income
compliant
compliant		₹17.04

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.

22.8%

CALCULATION

Debt Ratio:13662400000.0060018500000.00×100=22.80%\textbf{Debt Ratio:} \\[12pt] \dfrac{13662400000.00}{60018500000.00} \times 100 = 22.80\%

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.

12.8%

CALCULATION

Liquidity Ratio:7676900000.0060018500000.00×100=12.80%\textbf{Liquidity Ratio:} \\[12pt] \dfrac{7676900000.00}{60018500000.00} \times 100 = 12.80\%

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\%