ETHICAL COMPLIANCE REPORT

LG BALAKRISHNAN & BROS

Sector:

Consumer Cyclical

Industry:

Auto Parts

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Transmission, Metal Forming and Others
compliant
REVENUE RATIO FILTER
1.8%
View Calculations
DEBT RATIO FILTER
4.4%
View Calculations
LIQUIDITY RATIO FILTER
16.1%
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.

1.8%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{43258600000.00}{2395471900000.00} \times 100 = 1.80\%

FORMULA

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

Segment	Compliance	Value
Transmission	compliant	₹1,72,916.34
Metal Forming	compliant	₹46,272.08
Sale of services	compliant	₹311.20
Other Operating Revenue	compliant	₹15,104.97
Interest income	non-compliant	₹4,276.02
Dividend income	questionable	₹49.84
Other Income	compliant	₹616.74

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.

4.4%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{994864000.00}{22366618000.00} \times 100 = 4.40\%

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.

16.1%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{3600436000.00}{22366618000.00} \times 100 = 16.10\%

FORMULA

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