ETHICAL COMPLIANCE REPORT

TATA STEEL

Sector:

Basic Materials

Industry:

Steel

Overall Compliance

questionable

PRIMARY BUSINESS FILTER
Steel Manufacturer
compliant
REVENUE RATIO FILTER
0.3%
View Calculations
DEBT RATIO FILTER
29.8%
View Calculations
LIQUIDITY RATIO FILTER
3.2%
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.

0.3%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{7645299999.00}{2310074999999.00} \times 100 = 0.30\%

FORMULA

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

Segment	Compliance	Value
Power and Water	compliant	₹1,994.90
Others	compliant	₹9,513.87
export and other incentives	compliant	₹1,874.58
interest	non-compliant	₹470.82
Steel	compliant	₹2,15,787.43
Dividend	questionable	₹293.71
sale of property	compliant	₹960.87
miscellaneous income	compliant	₹111.32

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.

29.8%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{815739200000.00}{2734235000000.00} \times 100 = 29.80\%

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.

3.2%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{86777200000.00}{2734235000000.00} \times 100 = 3.20\%

FORMULA

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