ETHICAL COMPLIANCE REPORT

NELCO

Sector:

Technology

Industry:

Communication Equipment

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Communication & Networking
compliant
REVENUE RATIO FILTER
0.2%
View Calculations
DEBT RATIO FILTER
11.8%
View Calculations
LIQUIDITY RATIO FILTER
7.9%
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.

0.2%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{6900000.00}{3226600000.00} \times 100 = 0.20\%

FORMULA

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

Segment	Compliance	Value
Sale of satellite communication equipment	compliant	₹44.97
Sale of satellite communication services	compliant	₹222.43
Equipment rental services	compliant	₹12.32
Installation and other services	compliant	₹40.49
Scrap sales	compliant	₹0.09
Interest income	non-compliant	₹0.06
Net Gain on Sale of Investments	questionable	₹0.63
Other Income	compliant	₹1.67

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.

11.8%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{332200000.00}{2819600000.00} \times 100 = 11.80\%

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.

7.9%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{223200000.00}{2819600000.00} \times 100 = 7.90\%

FORMULA

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