ETHICAL COMPLIANCE REPORT

SOMANY CERAMICS

Sector:

Industrials

Industry:

Building Products & Equipment

Overall Compliance

non-compliant

PRIMARY BUSINESS FILTER
Decor solutions
compliant
REVENUE RATIO FILTER
0.3%
View Calculations
DEBT RATIO FILTER
34.1%
View Calculations
LIQUIDITY RATIO FILTER
7.2%
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.

0.3%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{80018000.00}{26023836000.00} \times 100 = 0.30\%

FORMULA

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

Segment	Compliance	Value
Other Operating Revenues	compliant	₹14.03
Interest Income	non-compliant	₹7.37
Net Gain on Sale of Investments	questionable	₹0.63
Other Income	compliant	₹2.88
Other Sales	compliant	₹341.91
Tiles	compliant	₹2,235.42
Sale of services	compliant	₹0.14

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.

34.1%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{3351083000.00}{9837937000.00} \times 100 = 34.10\%

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.

7.2%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{708967000.00}{9837937000.00} \times 100 = 7.20\%

FORMULA

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