ETHICAL COMPLIANCE REPORT

BEML

Sector:

Industrials

Industry:

Conglomerates

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Mining and Construction Equipments
compliant
REVENUE RATIO FILTER
0.1%
View Calculations
DEBT RATIO FILTER
1.1%
View Calculations
LIQUIDITY RATIO FILTER
16.3%
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.

0.1%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{25424000.00}{40965623000.00} \times 100 = 0.10\%

FORMULA

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

Segment	Compliance	Value
Defence Products	compliant	₹554.16
Earth Moving Equipment	compliant	₹813.22
Rail & Metro Products	compliant	₹1,481.47
Spare Parts	compliant	₹838.21
Sales of Service	compliant	₹278.33
Other Operating Income	compliant	₹88.95
Interest Income	non-compliant	₹2.54
Other Income	compliant	₹39.70

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.

1.1%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{605610000.00}{54453488000.00} \times 100 = 1.10\%

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.

16.3%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{8863800000.00}{54453488000.00} \times 100 = 16.30\%

FORMULA

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