ETHICAL COMPLIANCE REPORT

VARDHMAN SPC STEEL

Sector:

Basic Materials

Industry:

Steel

Overall Compliance

compliant

compliant

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:36644000.0016911828000.00×100=0.20%\textbf{Revenue Ratio:} \\[12pt] \dfrac{36644000.00}{16911828000.00} \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
Iron & Steel Products
compliant
compliant		₹1,649.99
Other Operating Revenue
compliant
compliant		₹11.37
Investment Gain
questionable
questionable		₹2.18
Interest Income
non-compliant
non-compliant		₹1.49
Other Income
compliant
compliant		₹26.16

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.

8%

CALCULATION

Debt Ratio:829405000.0010396689000.00×100=8.00%\textbf{Debt Ratio:} \\[12pt] \dfrac{829405000.00}{10396689000.00} \times 100 = 8.00\%

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.

0.7%

CALCULATION

Liquidity Ratio:77605000.0010396689000.00×100=0.70%\textbf{Liquidity Ratio:} \\[12pt] \dfrac{77605000.00}{10396689000.00} \times 100 = 0.70\%

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\%