ETHICAL COMPLIANCE REPORT

ORIENT ELECTRIC

Sector:

Consumer Cyclical

Industry:

Furnishings, Fixtures & Appliances

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Electrical Components
compliant
REVENUE RATIO FILTER
0.3%
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DEBT RATIO FILTER
1.4%
View Calculations
LIQUIDITY RATIO FILTER
4.6%
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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.

0.3%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{79000000.00}{28276600000.00} \times 100 = 0.30\%

FORMULA

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

Segment	Compliance	Value
Electrical Components	compliant	₹2,771.88
Sale of Scrap	compliant	₹36.91
Export Incentives	compliant	₹3.33
Interest income	non-compliant	₹7.41
Net Gain on Sale of Investments	questionable	₹0.49
Other Income	compliant	₹7.64

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.

1.4%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{208700000.00}{14509900000.00} \times 100 = 1.40\%

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.

4.6%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{663300000.00}{14509900000.00} \times 100 = 4.60\%

FORMULA

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