ETHICAL COMPLIANCE REPORT

ELECON ENG. CO.

Sector:

Industrials

Industry:

Specialty Industrial Machinery

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Manufacturing
compliant
REVENUE RATIO FILTER
1%
View Calculations
DEBT RATIO FILTER
0%
View Calculations
LIQUIDITY RATIO FILTER
12.4%
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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{206500000.00}{19814800000.00} \times 100 = 1.00\%

FORMULA

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

Segment	Compliance	Value
Transmission Equipment Material Handling Equipment &	compliant	₹1,857.41
Erection, commissioning and service charges	compliant	₹26.53
others	compliant	₹22.59
Other Operating Revenues	compliant	₹30.89
Interest Income	non-compliant	₹18.70
investment gain	questionable	₹1.95
other income	compliant	₹23.41

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}{21240000000.00} \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.

12.4%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{2633100000.00}{21240000000.00} \times 100 = 12.40\%

FORMULA

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