ETHICAL COMPLIANCE REPORT

SONA BLW PRECISION FRGS L

Sector:

Consumer Cyclical

Industry:

Auto Parts

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
automotive technology
compliant
REVENUE RATIO FILTER
0.7%
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DEBT RATIO FILTER
6%
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LIQUIDITY RATIO FILTER
7.1%
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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.

0.7%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{239480000.00}{32089739999.00} \times 100 = 0.70\%

FORMULA

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

Segment	Compliance	Value
Foreign Exchange Gain	compliant	₹0.01
Scrap Sale	compliant	₹68.47
Export Incentive	compliant	₹29.46
Royalty Income	compliant	₹0.15
Others	compliant	₹4.62
Sale of Auto Parts	compliant	₹3,081.95
Other Income	compliant	₹0.38
interest & other	non-compliant	₹23.95

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{2330590000.00}{38649130000.00} \times 100 = 6.00\%

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.

7.1%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{2741640000.00}{38649130000.00} \times 100 = 7.10\%

FORMULA

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