ETHICAL COMPLIANCE REPORT

ISGEC HEAVY ENG

Sector:

Industrials

Industry:

Specialty Industrial Machinery

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Industrial Machinery
compliant
DEBT RATIO FILTER
10%
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LIQUIDITY RATIO FILTER
2.4%
View Calculations
REVENUE RATIO FILTER
0.2%
View Calculations

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%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{7872445000.00}{78351722000.00} \times 100 = 10.00\%

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.

2.4%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{1918697000.00}{78351722000.00} \times 100 = 2.40\%

FORMULA

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

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.

0.2%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{102333000.00}{62554684000.00} \times 100 = 0.20\%

FORMULA

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

Segment	Compliance	Value
Manufacturing of Machinery & Equipment	compliant	₹5,636.89
Engineering, Procurement and Construction	compliant	₹530.10
Other Operating Revenue	compliant	₹52.34
Other Income	compliant	₹25.90
Interest Income	non-compliant	₹6.21
Net Gain on Sale of Investments	questionable	₹4.02