ETHICAL COMPLIANCE REPORT

PITTI ENGINEERING

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.

0.2%

Non Compliant
Questionable
Compliant

CALCULATION

Revenue Ratio:26769000.0012570058000.00×100=0.20%\textbf{Revenue Ratio:} \\[12pt] \dfrac{26769000.00}{12570058000.00} \times 100 = 0.20\%

FORMULA

Revenue Ratio:Unethical SegmentsTotal Revenue×100  ≤  3%\textbf{Revenue Ratio:} \\[12pt] \dfrac{\text{Unethical Segments}}{\text{Total Revenue}} \times 100 \; \leq \; 3\%
SegmentComplianceValue
Investment Gain
questionable
questionable		₹0.00
Other Income
compliant
compliant		₹45.53
Interest Income
non-compliant
non-compliant		₹2.68
Metal components
compliant
compliant		₹1,199.25
Sale of Services
compliant
compliant		₹9.54

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.

40.4%

CALCULATION

Debt Ratio:5366863000.0013299858000.00×100=40.40%\textbf{Debt Ratio:} \\[12pt] \dfrac{5366863000.00}{13299858000.00} \times 100 = 40.40\%

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.

8.2%

CALCULATION

Liquidity Ratio:1094588000.0013299858000.00×100=8.20%\textbf{Liquidity Ratio:} \\[12pt] \dfrac{1094588000.00}{13299858000.00} \times 100 = 8.20\%

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\%