ETHICAL COMPLIANCE REPORT

BIRLASOFT

Sector:

Technology

Industry:

Information Technology Services

Overall Compliance

non-compliant

PRIMARY BUSINESS FILTER
IT Services
compliant
REVENUE RATIO FILTER
21.9%
View Calculations
DEBT RATIO FILTER
0%
View Calculations
LIQUIDITY RATIO FILTER
10.8%
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.

21.9%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{11786400000.00}{53816510000.00} \times 100 = 21.90\%

FORMULA

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

Segment	Compliance	Value
Interest Income	non-compliant	₹75.69
Other Income	compliant	₹27.82
Manufacturing	compliant	₹2,174.49
BFSI	non-compliant	₹1,102.95
Energy and Utilities	compliant	₹754.49
Life Sciences	compliant	₹1,246.22

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.

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{0.00}{39256490000.00} \times 100 = 0.00\%

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.

10.8%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{4249380000.00}{39256490000.00} \times 100 = 10.80\%

FORMULA

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