ETHICAL COMPLIANCE REPORT

BHARAT FORGE

Sector:

Consumer Cyclical

Industry:

Auto Parts

Overall Compliance

non-compliant

PRIMARY BUSINESS FILTER
Electrical Goods Manufacturing
compliant
REVENUE RATIO FILTER
1.1%
View Calculations
DEBT RATIO FILTER
38.9%
View Calculations
LIQUIDITY RATIO FILTER
8.7%
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.

1.1%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{1810410000.00}{159094950000.00} \times 100 = 1.10\%

FORMULA

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

Segment	Compliance	Value
Sale of Industrial Products	compliant	₹14,823.01
Tooling Income	compliant	₹88.69
Job Work Charges	compliant	₹127.67
Manufacturing Scrap	compliant	₹3.57
Government Grants - Export Incentives	compliant	₹514.37
Sale of Electricity/rec - Windmills	compliant	₹120.32
Other Income	compliant	₹4.44
Other	compliant	₹46.38
interest & other	non-compliant	₹181.04

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.

38.9%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{75220750000.00}{193491180000.00} \times 100 = 38.90\%

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.

8.7%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{16899220000.00}{193491180000.00} \times 100 = 8.70\%

FORMULA

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