ETHICAL COMPLIANCE REPORT

SHANTHI GEARS

Sector:

Industrials

Industry:

Specialty Industrial Machinery

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Gears and Gearboxes.
compliant
DEBT RATIO FILTER
0%
View Calculations
LIQUIDITY RATIO FILTER
2.3%
View Calculations
REVENUE RATIO FILTER
2.2%
View Calculations

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.

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{0.00}{4428000000.00} \times 100 = 0.00\%

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.

2.3%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{100100000.00}{4428000000.00} \times 100 = 2.30\%

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.

2.2%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{122800000.00}{5571100000.00} \times 100 = 2.20\%

FORMULA

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

Segment	Compliance	Value
Other Operating Revenue	compliant	₹8.42
Sale of AutoMobile Parts	compliant	₹527.63
Interest income	non-compliant	₹8.79
Net Gain on Sale of Investments	questionable	₹3.49
Other Income	compliant	₹8.78