ETHICAL COMPLIANCE REPORT

UPL

Sector:

Basic Materials

Industry:

Agricultural Inputs

Overall Compliance

non-compliant

PRIMARY BUSINESS FILTER
Chemical Manufacturing Company
compliant
REVENUE RATIO FILTER
1%
View Calculations
DEBT RATIO FILTER
32.5%
View Calculations
LIQUIDITY RATIO FILTER
6.9%
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.

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{4490000000.00}{435810000000.00} \times 100 = 1.00\%

FORMULA

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

Segment	Compliance	Value
Crop protection	compliant	₹36,567.00
Other Income	compliant	₹34.00
Interest Income	non-compliant	₹449.00
Seeds business	compliant	₹4,224.00
Non-Agro	compliant	₹2,305.00
other segment	compliant	₹2.00

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.

32.5%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{284380000000.00}{875460000000.00} \times 100 = 32.50\%

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.

6.9%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{60360000000.00}{875460000000.00} \times 100 = 6.90\%

FORMULA

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