ETHICAL COMPLIANCE REPORT

THE INDIA CEMENTS

Sector:

Basic Materials

Industry:

Building Materials

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Cement
compliant
REVENUE RATIO FILTER
0.5%
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DEBT RATIO FILTER
24.9%
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LIQUIDITY RATIO FILTER
0.1%
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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.

0.5%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{265596000.00}{49967565000.00} \times 100 = 0.50\%

FORMULA

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

Segment	Compliance	Value
Sale of Cement	compliant	₹4,784.12
Other Operating Revenue	compliant	₹158.31
Interest Income	non-compliant	₹10.00
Investment Gain	questionable	₹16.56
Other Income	compliant	₹27.76

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.

24.9%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{26012334000.00}{104451541000.00} \times 100 = 24.90\%

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.

0.1%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{135607000.00}{104451541000.00} \times 100 = 0.10\%

FORMULA

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