ETHICAL COMPLIANCE REPORT

ELGI EQUIPMENTS

Sector:

Industrials

Industry:

Specialty Industrial Machinery

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Automotive Equipments
compliant
REVENUE RATIO FILTER
1.3%
View Calculations
DEBT RATIO FILTER
19.9%
View Calculations
LIQUIDITY RATIO FILTER
27.5%
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.

1.3%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{430620000.00}{32727540000.00} \times 100 = 1.30\%

FORMULA

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

Segment	Compliance	Value
Air Compressors & Automotive equipments	compliant	₹2,992.37
Sale of Services	compliant	₹209.98
Other Operating Revenues	compliant	₹15.42
interest & other	non-compliant	₹43.06
other income	compliant	₹11.93

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.

19.9%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{5604620000.00}{28209260000.00} \times 100 = 19.90\%

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.

27.5%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{7744950000.00}{28209260000.00} \times 100 = 27.50\%

FORMULA

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