ETHICAL COMPLIANCE REPORT

KIRLOSKAR OIL ENG

Sector:

Industrials

Industry:

Specialty Industrial Machinery

Overall Compliance

non-compliant

PRIMARY BUSINESS FILTER
Industrial Machinery
compliant
REVENUE RATIO FILTER
9.9%
View Calculations
DEBT RATIO FILTER
49.8%
View Calculations
LIQUIDITY RATIO FILTER
6.1%
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.

9.9%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{5850300000.00}{59269600000.00} \times 100 = 9.90\%

FORMULA

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

Segment	Compliance	Value
Sale of Machines & Spares	compliant	₹5,276.64
Financial Services	non-compliant	₹564.55
Other Operating Revenue	compliant	₹57.13
Other income	compliant	₹8.16
Interest & other	non-compliant	₹20.48

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.

49.8%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{41246800000.00}{82778700000.00} \times 100 = 49.80\%

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.

6.1%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{5047500000.00}{82778700000.00} \times 100 = 6.10\%

FORMULA

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