ETHICAL COMPLIANCE REPORT

PENNAR INDUSTRIES

Sector:

Industrials

Industry:

Specialty Industrial Machinery

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Engineering products
compliant
REVENUE RATIO FILTER
0.2%
View Calculations
DEBT RATIO FILTER
26.2%
View Calculations
LIQUIDITY RATIO FILTER
6.4%
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{65200000.00}{32632700000.00} \times 100 = 0.20\%

FORMULA

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

Segment	Compliance	Value
Other Income	compliant	₹30.17
Engineering products	compliant	₹2,938.92
Sale of Services	compliant	₹100.71
Interest Income	non-compliant	₹4.19
Export Incentive	compliant	₹2.63
Revenue from contracts	compliant	₹81.29
Scrap Sales	compliant	₹103.03
Investment Gain	questionable	₹2.33

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.

26.2%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{7751200000.00}{29541900000.00} \times 100 = 26.20\%

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.

6.4%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{1895400000.00}{29541900000.00} \times 100 = 6.40\%

FORMULA

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