ETHICAL COMPLIANCE REPORT

BHARAT ELECTRONICS

Sector:

Industrials

Industry:

Aerospace & Defense

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.

1.1%

Non Compliant
Questionable
Compliant

CALCULATION

Revenue Ratio:2315400000.00155997200000.00×100=1.10%\textbf{Revenue Ratio:} \\[12pt] \dfrac{2315400000.00}{155997200000.00} \times 100 = 1.10\%

FORMULA

Revenue Ratio:Unethical SegmentsTotal Revenue×100  ≤  3%\textbf{Revenue Ratio:} \\[12pt] \dfrac{\text{Unethical Segments}}{\text{Total Revenue}} \times 100 \; \leq \; 3\%
SegmentComplianceValue
Revenue From Operations
compliant
compliant		₹15,368.18
Other Income(interest)
non-compliant
non-compliant		₹231.54

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.

0.2%

CALCULATION

Debt Ratio:625100000.00395266800000.00×100=0.20%\textbf{Debt Ratio:} \\[12pt] \dfrac{625100000.00}{395266800000.00} \times 100 = 0.20\%

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.

28%

CALCULATION

Liquidity Ratio:110565900000.00395266800000.00×100=28.00%\textbf{Liquidity Ratio:} \\[12pt] \dfrac{110565900000.00}{395266800000.00} \times 100 = 28.00\%

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\%