ETHICAL COMPLIANCE REPORT

GARDEN REACH SHIP&ENG

Sector:

Industrials

Industry:

Aerospace & Defense

Overall Compliance

non-compliant

PRIMARY BUSINESS FILTER
Ship Building
compliant
REVENUE RATIO FILTER
7.4%
View Calculations
DEBT RATIO FILTER
0.5%
View Calculations
LIQUIDITY RATIO FILTER
36.3%
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.

7.4%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{2894677000.00}{38922642000.00} \times 100 = 7.40\%

FORMULA

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

Segment	Compliance	Value
Contract revenue	compliant	₹3,192.75
Sale of products	compliant	₹334.94
Misc. Project	compliant	₹0.17
Ship Repairs	compliant	₹46.73
Project assistance	compliant	₹13.87
Other Operating Income	compliant	₹4.18
Interest Income	non-compliant	₹271.35
Investment Gain	questionable	₹18.11
Other Income	compliant	₹10.15

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.

0.5%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{555848000.00}{102519091000.00} \times 100 = 0.50\%

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.

36.3%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{37203384000.00}{102519091000.00} \times 100 = 36.30\%

FORMULA

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