ETHICAL COMPLIANCE REPORT

WELSPUN CORP

Sector:

Basic Materials

Industry:

Steel

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Iron & Steel Products
compliant
REVENUE RATIO FILTER
0.7%
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DEBT RATIO FILTER
16.1%
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LIQUIDITY RATIO FILTER
9%
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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.

0.7%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{1296700000.00}{175820600000.00} \times 100 = 0.70\%

FORMULA

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

Segment	Compliance	Value
Steel Products	compliant	₹16,756.25
Sale of Services	compliant	₹139.36
Other Operating Revenue	compliant	₹443.99
Interest Income	non-compliant	₹95.09
Investment Gain	questionable	₹34.58
Other Income	compliant	₹112.79

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.

16.1%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{19078700000.00}{118502300000.00} \times 100 = 16.10\%

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.

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{10717600000.00}{118502300000.00} \times 100 = 9.00\%

FORMULA

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