ETHICAL COMPLIANCE REPORT

SUDARSHAN CHEMICAL INDS L

Sector:

Basic Materials

Industry:

Specialty Chemicals

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Organic and Inorganic Pigments
compliant
REVENUE RATIO FILTER
0.5%
View Calculations
DEBT RATIO FILTER
18.7%
View Calculations
LIQUIDITY RATIO FILTER
2.4%
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{127790000.00}{25558630000.00} \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	₹4.06
Net Gain on Sale of Investments	questionable	₹8.72
Sale of services	compliant	₹2.73
Other Operating Revenue	compliant	₹24.46
Sale of engineering equipments & Pigments	compliant	₹2,511.58
Other Income	compliant	₹4.31

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.

18.7%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{4409300000.00}{23550320000.00} \times 100 = 18.70\%

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.

2.4%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{559050000.00}{23550320000.00} \times 100 = 2.40\%

FORMULA

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