ETHICAL COMPLIANCE REPORT

GMM PFAUDLER

Sector:

Industrials

Industry:

Specialty Industrial Machinery

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Industrial Machinery
compliant
REVENUE RATIO FILTER
0.4%
View Calculations
DEBT RATIO FILTER
22.6%
View Calculations
LIQUIDITY RATIO FILTER
10.9%
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.

0.4%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{137600000.00}{34665100000.00} \times 100 = 0.40\%

FORMULA

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

Segment	Compliance	Value
Revenue From Systems	compliant	₹3,424.56
Other Operating Revenue	compliant	₹21.92
Interest income	non-compliant	₹2.16
Net Gain on Sale of Investments	questionable	₹11.60
Other Income	compliant	₹6.27

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.

22.6%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{7120200000.00}{31569100000.00} \times 100 = 22.60\%

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.

10.9%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{3435700000.00}{31569100000.00} \times 100 = 10.90\%

FORMULA

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