ETHICAL COMPLIANCE REPORT

MM FORGINGS

Sector:

Industrials

Industry:

Metal Fabrication

Overall Compliance

non-compliant

non-compliant

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%

Non Compliant
Questionable
Compliant

CALCULATION

Revenue Ratio:153873000.0015848576000.00×100=1.00%\textbf{Revenue Ratio:} \\[12pt] \dfrac{153873000.00}{15848576000.00} \times 100 = 1.00\%

FORMULA

Revenue Ratio:Unethical SegmentsTotal Revenue×100  ≤  3%\textbf{Revenue Ratio:} \\[12pt] \dfrac{\text{Unethical Segments}}{\text{Total Revenue}} \times 100 \; \leq \; 3\%
SegmentComplianceValue
Steel Forgings
compliant
compliant		₹1,547.12
Other Operating Revenue
compliant
compliant		₹15.95
Interest income
non-compliant
non-compliant		₹0.24
Dividend income
questionable
questionable		₹15.15
Other Income
compliant
compliant		₹6.40

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.

41.2%

CALCULATION

Debt Ratio:8105966000.0019679548000.00×100=41.20%\textbf{Debt Ratio:} \\[12pt] \dfrac{8105966000.00}{19679548000.00} \times 100 = 41.20\%

FORMULA

Debt Ratio:Interest Bearing DebtTotal Assets×100  ≤  30%\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.

10.7%

CALCULATION

Liquidity Ratio:2098333000.0019679548000.00×100=10.70%\textbf{Liquidity Ratio:} \\[12pt] \dfrac{2098333000.00}{19679548000.00} \times 100 = 10.70\%

FORMULA

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