ETHICAL COMPLIANCE REPORT

ACTION CONST EQUIP

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Sector:

Industrials

Industry:

Farm & Heavy Construction Machinery

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.

0.8%

Non Compliant
Questionable
Compliant

CALCULATION

Revenue Ratio:398500000.0047838700000.00×100=0.80%\textbf{Revenue Ratio:} \\[12pt] \dfrac{398500000.00}{47838700000.00} \times 100 = 0.80\%

FORMULA

Revenue Ratio:Unethical SegmentsTotal Revenue×100  ≤  3%\textbf{Revenue Ratio:} \\[12pt] \dfrac{\text{Unethical Segments}}{\text{Total Revenue}} \times 100 \; \leq \; 3\%
SegmentComplianceValue
interest & other
non-compliant
non-compliant		₹39.85
Life Science and Other Chemicals
compliant
compliant		₹4,682.96
Export Incentives
compliant
compliant		₹42.72
other income
compliant
compliant		₹18.34

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.

10.7%

CALCULATION

Debt Ratio:2318500000.0021692100000.00×100=10.70%\textbf{Debt Ratio:} \\[12pt] \dfrac{2318500000.00}{21692100000.00} \times 100 = 10.70\%

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.

3.3%

CALCULATION

Liquidity Ratio:723000000.0021692100000.00×100=3.30%\textbf{Liquidity Ratio:} \\[12pt] \dfrac{723000000.00}{21692100000.00} \times 100 = 3.30\%

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\%