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ETHICAL COMPLIANCE REPORT

BHEL

Sector:

Industrials

Industry:

Specialty Industrial Machinery

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Electrical Goods Manufacturing
compliant
REVENUE RATIO FILTER
2%
View Calculations
DEBT RATIO FILTER
14.9%
View Calculations
LIQUIDITY RATIO FILTER
10.4%
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.

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{4937800000.00}{244388600000.00} \times 100 = 2.00\%

FORMULA

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

Segment	Compliance	Value
Freight & Insurance	compliant	₹163.78
Export Incentives	compliant	₹10.20
Insurance Claims	compliant	₹28.83
Others	compliant	₹138.78
Other Income	compliant	₹52.49
Interest Income	non-compliant	₹493.78
Revenue From Construction and Project Related Activity	compliant	₹15,888.42
Recoveries From Suppliers	compliant	₹220.12
Scrap Sales	compliant	₹249.20
Liabilities Written Back	compliant	₹161.16
Sale of Product & Other Services	compliant	₹7,032.10

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.

14.9%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{88080000000.00}{590055000000.00} \times 100 = 14.90\%

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.

10.4%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{61574700000.00}{590055000000.00} \times 100 = 10.40\%

FORMULA

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