ETHICAL COMPLIANCE REPORT

LUMAX INDUSTRIES

Sector:

Consumer Cyclical

Industry:

Auto Parts

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Auto Parts
compliant
REVENUE RATIO FILTER
0.1%
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DEBT RATIO FILTER
23%
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LIQUIDITY RATIO FILTER
1.8%
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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.

0.1%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{21207000.00}{26479842000.00} \times 100 = 0.10\%

FORMULA

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

Segment	Compliance	Value
Other Income	compliant	₹9.27
Moulds, tools and dies	compliant	₹77.30
Auto Parts	compliant	₹2,543.73
Dividend Income	questionable	₹1.21
Sale of Services	compliant	₹9.97
Other Operating Revenue	compliant	₹5.60
Interest Income	non-compliant	₹0.92

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.

23%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{5970025000.00}{26009984000.00} \times 100 = 23.00\%

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.

1.8%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{465157000.00}{26009984000.00} \times 100 = 1.80\%

FORMULA

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