ETHICAL COMPLIANCE REPORT

ENGINEERS INDIA

Sector:

Industrials

Industry:

Engineering & Construction

Overall Compliance

questionable

PRIMARY BUSINESS FILTER
Engineering Consultancy
compliant
REVENUE RATIO FILTER
3.8%
View Calculations
DEBT RATIO FILTER
0.7%
View Calculations
LIQUIDITY RATIO FILTER
28.9%
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.

3.8%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{1262555000.00}{34944955000.00} \times 100 = 3.80\%

FORMULA

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

Segment	Compliance	Value
Consultancy and Engineering Services	compliant	₹1,463.22
Other Operating Revenue	compliant	₹1.08
Turnkey Projects	compliant	₹1,865.84
Other Income	compliant	₹38.10
Dividend Income	questionable	₹54.65
Interest Income	non-compliant	₹71.61

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.

0.7%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{330163000.00}{47418712000.00} \times 100 = 0.70\%

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.

28.9%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{13713080000.00}{47418712000.00} \times 100 = 28.90\%

FORMULA

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