ETHICAL COMPLIANCE REPORT

SUMITOMO CHEM INDIA

Sector:

Basic Materials

Industry:

Agricultural Inputs

Overall Compliance

questionable

PRIMARY BUSINESS FILTER
Chemical Manufacturing
compliant
REVENUE RATIO FILTER
3.1%
View Calculations
DEBT RATIO FILTER
0%
View Calculations
LIQUIDITY RATIO FILTER
5.5%
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.

3.1%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{921290000.00}{29396160000.00} \times 100 = 3.10\%

FORMULA

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

Segment	Compliance	Value
Sale of Services	compliant	₹0.08
agro Chemicals	compliant	₹2,817.69
Other Operating Revenue	compliant	₹26.18
Other Income	compliant	₹3.54
Interest Income	non-compliant	₹92.13

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.

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{5060000.00}{33132680000.00} \times 100 = 0.00\%

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.

5.5%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{1833240000.00}{33132680000.00} \times 100 = 5.50\%

FORMULA

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