ETHICAL COMPLIANCE REPORT

POWER MECH PROJECTS.

Sector:

Industrials

Industry:

Engineering & Construction

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Construction & Engineering
compliant
REVENUE RATIO FILTER
0.5%
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DEBT RATIO FILTER
11%
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LIQUIDITY RATIO FILTER
13.5%
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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.

0.5%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{211900000.00}{42344000000.00} \times 100 = 0.50\%

FORMULA

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

Segment	Compliance	Value
Income From Contracts and Services	compliant	₹4,205.80
Interest Income	non-compliant	₹21.02
Crane Hire Charges Received	compliant	₹0.85
Investment Gain	questionable	₹0.17
Other Income	compliant	₹6.56

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%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{3917500000.00}{35666200000.00} \times 100 = 11.00\%

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.

13.5%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{4798300000.00}{35666200000.00} \times 100 = 13.50\%

FORMULA

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