ETHICAL COMPLIANCE REPORT

GREAVES COTTON.

Sector:

Industrials

Industry:

Specialty Industrial Machinery

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Engines and Power Solutions
compliant
REVENUE RATIO FILTER
1.9%
View Calculations
DEBT RATIO FILTER
2%
View Calculations
LIQUIDITY RATIO FILTER
12.7%
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.

1.9%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{519400000.00}{26979500000.00} \times 100 = 1.90\%

FORMULA

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

Segment	Compliance	Value
Sale of Sells Engines and Power Solutions	compliant	₹2,548.20
Sale of services	compliant	₹37.66
Other Operating Revenue	compliant	₹47.33
Interest income	non-compliant	₹44.58
Net Gain on Sale of Investments	questionable	₹7.36
Other Income	compliant	₹12.82

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{493400000.00}{24643900000.00} \times 100 = 2.00\%

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.

12.7%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{3141500000.00}{24643900000.00} \times 100 = 12.70\%

FORMULA

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