ETHICAL COMPLIANCE REPORT

STERLITE TECHNOLOGIES

Sector:

Industrials

Industry:

Electrical Equipment & Parts

Overall Compliance

non-compliant

PRIMARY BUSINESS FILTER
Telecom Equipments
compliant
REVENUE RATIO FILTER
0.5%
View Calculations
DEBT RATIO FILTER
38.7%
View Calculations
LIQUIDITY RATIO FILTER
4.8%
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.

0.5%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{270000000.00}{56410000000.00} \times 100 = 0.50\%

FORMULA

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

Segment	Compliance	Value
Interest income	non-compliant	₹9.00
telecom products	compliant	₹3,830.00
Network Integration Projects	compliant	₹1,456.00
IT and ITES related services	compliant	₹298.00
Net Gain on Sale of Investments	questionable	₹18.00
Other Income	compliant	₹30.00

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.

38.7%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{32250000000.00}{83310000000.00} \times 100 = 38.70\%

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.

4.8%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{4030000000.00}{83310000000.00} \times 100 = 4.80\%

FORMULA

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