ETHICAL COMPLIANCE REPORT

SONATA SOFTWARE

Sector:

Technology

Industry:

Information Technology Services

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
IT Services
compliant
REVENUE RATIO FILTER
0.7%
View Calculations
DEBT RATIO FILTER
13.1%
View Calculations
LIQUIDITY RATIO FILTER
16.8%
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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.

0.7%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{581600000.00}{87386100000.00} \times 100 = 0.70\%

FORMULA

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

Segment	Compliance	Value
Sale of Software/hardware Products and Licenses	compliant	₹6,129.44
Software Services	compliant	₹2,480.51
Other Operating Revenue	compliant	₹3.11
interest Income	non-compliant	₹58.16
other income	compliant	₹67.39

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.

13.1%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{6734000000.00}{51491200000.00} \times 100 = 13.10\%

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.

16.8%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{8649700000.00}{51491200000.00} \times 100 = 16.80\%

FORMULA

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