ETHICAL COMPLIANCE REPORT

THE RAMCO CEMENTS

THE RAMCO CEMENTS Logo

Sector:

Basic Materials

Industry:

Building Materials

Overall Compliance

questionable

questionable

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.

0.2%

Non Compliant
Questionable
Compliant

CALCULATION

Revenue Ratio:177300000.0094127900000.00×100=0.20%\textbf{Revenue Ratio:} \\[12pt] \dfrac{177300000.00}{94127900000.00} \times 100 = 0.20\%

FORMULA

Revenue Ratio:Unethical SegmentsTotal Revenue×100  ≤  3%\textbf{Revenue Ratio:} \\[12pt] \dfrac{\text{Unethical Segments}}{\text{Total Revenue}} \times 100 \; \leq \; 3\%
SegmentComplianceValue
Cement & windmill power
compliant
compliant		₹9,373.87
Other Income
compliant
compliant		₹21.19
interest & other
non-compliant
non-compliant		₹17.73

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.

30.2%

CALCULATION

Debt Ratio:49168200000.00162727300000.00×100=30.20%\textbf{Debt Ratio:} \\[12pt] \dfrac{49168200000.00}{162727300000.00} \times 100 = 30.20\%

FORMULA

Debt Ratio:Interest Bearing DebtTotal Assets×100  ≤  30%\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.

0.8%

CALCULATION

Liquidity Ratio:1369100000.00162727300000.00×100=0.80%\textbf{Liquidity Ratio:} \\[12pt] \dfrac{1369100000.00}{162727300000.00} \times 100 = 0.80\%

FORMULA

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