ETHICAL COMPLIANCE REPORT

SWARAJ ENGINES

Sector:

Consumer Cyclical

Industry:

Auto Parts

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Manufactures Engines
compliant
REVENUE RATIO FILTER
1.1%
View Calculations
DEBT RATIO FILTER
0.2%
View Calculations
LIQUIDITY RATIO FILTER
31.6%
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.

1.1%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{151811000.00}{14345890000.00} \times 100 = 1.10\%

FORMULA

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

Segment	Compliance	Value
Interest income	non-compliant	₹13.12
Net Gain on Sale of Investments	questionable	₹2.06
Other Income	compliant	₹0.17
Scrap & Others	compliant	₹6.50
Engines	compliant	₹1,379.53
Spares	compliant	₹33.21
Sale of services	compliant	₹0.00

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.

0.2%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{12200000.00}{5567927000.00} \times 100 = 0.20\%

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.

31.6%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{1756852000.00}{5567927000.00} \times 100 = 31.60\%

FORMULA

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