ETHICAL COMPLIANCE REPORT

STAR CEMENT

Sector:

Basic Materials

Industry:

Building Materials

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Cement
compliant
REVENUE RATIO FILTER
0.7%
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DEBT RATIO FILTER
3.6%
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LIQUIDITY RATIO FILTER
2.7%
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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{200243000.00}{29371322000.00} \times 100 = 0.70\%

FORMULA

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

Segment	Compliance	Value
Clinker	compliant	₹20.06
Cement	compliant	₹2,857.33
Power Sale	compliant	₹1.30
Others	compliant	₹9.18
Other Operating Income	compliant	₹0.31
Incentives and subsidies	compliant	₹16.65
Scrap	compliant	₹5.84
Investment Gain	questionable	₹0.12
Interest Income	non-compliant	₹19.91
Other Income	compliant	₹6.44

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.

3.6%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{1298290000.00}{36023729000.00} \times 100 = 3.60\%

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.

2.7%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{973417000.00}{36023729000.00} \times 100 = 2.70\%

FORMULA

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