ETHICAL COMPLIANCE REPORT

HAPPY FORGINGS

Sector:

Industrials

Industry:

Metal Fabrication

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
machine components
compliant
REVENUE RATIO FILTER
0.7%
View Calculations
DEBT RATIO FILTER
10.8%
View Calculations
LIQUIDITY RATIO FILTER
8.9%
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.

0.7%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{101939000.00}{13715907000.00} \times 100 = 0.70\%

FORMULA

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

Segment	Compliance	Value
Interest Income	non-compliant	₹7.65
investment gain	questionable	₹2.54
other income	compliant	₹3.16
machine components	compliant	₹1,229.27
Die design and preparation charges	compliant	₹13.81
Sale of manufacturing scrap	compliant	₹101.64
Government Grants	compliant	₹13.51

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.

10.8%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{1430074000.00}{13261680000.00} \times 100 = 10.80\%

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.

8.9%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{1174696000.00}{13261680000.00} \times 100 = 8.90\%

FORMULA

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