ETHICAL COMPLIANCE REPORT

INDIA NIPPON ELECT

Sector:

Consumer Cyclical

Industry:

Auto Parts

Overall Compliance

questionable

PRIMARY BUSINESS FILTER
Ignition Systems
compliant
REVENUE RATIO FILTER
3%
View Calculations
DEBT RATIO FILTER
0.4%
View Calculations
LIQUIDITY RATIO FILTER
2.3%
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.

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{225800000.00}{7489500000.00} \times 100 = 3.00\%

FORMULA

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

Segment	Compliance	Value
Sale of Electronic manufacture and sale of Ignition Systems	compliant	₹716.70
Other Operating Revenue	compliant	₹7.38
Interest income	non-compliant	₹1.79
Net Gain on Sale of Investments	questionable	₹20.79
Other Income	compliant	₹2.29

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.

0.4%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{29400000.00}{8370300000.00} \times 100 = 0.40\%

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.

2.3%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{189100000.00}{8370300000.00} \times 100 = 2.30\%

FORMULA

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