ETHICAL COMPLIANCE REPORT

PARAS DEF AND SPCE TECH L

Sector:

Industrials

Industry:

Aerospace & Defense

Overall Compliance

questionable

PRIMARY BUSINESS FILTER
Defence and space engineering products
questionable
DEBT RATIO FILTER
10.1%
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LIQUIDITY RATIO FILTER
1%
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REVENUE RATIO FILTER
99.9%
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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.

10.1%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{646076000.00}{6397285000.00} \times 100 = 10.10\%

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.

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{64106000.00}{6397285000.00} \times 100 = 1.00\%

FORMULA

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

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.

99.9%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{2614903000.00}{2617699000.00} \times 100 = 99.90\%

FORMULA

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

Segment	Compliance	Value
Investment Gain	questionable	₹4.76
Defence Engineering	questionable	₹184.11
Optics and Optronic Systems	questionable	₹69.39
Other Income	compliant	₹0.28
Interest Income	non-compliant	₹3.23