ETHICAL COMPLIANCE REPORT

TECHNO ELEC & ENG CO.

Sector:

Industrials

Industry:

Engineering & Construction

Overall Compliance

questionable

PRIMARY BUSINESS FILTER
Techno Electric & Engineering
compliant
REVENUE RATIO FILTER
4.5%
View Calculations
DEBT RATIO FILTER
0%
View Calculations
LIQUIDITY RATIO FILTER
4.8%
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.

4.5%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{739804000.00}{15770598000.00} \times 100 = 4.50\%

FORMULA

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

Segment	Compliance	Value
Contract Revenue	compliant	₹1,487.15
Sale of power	compliant	₹10.44
Interest Income	non-compliant	₹31.15
Investment Gain	questionable	₹42.83
Other Income	compliant	₹0.70
Other Operating Income	compliant	₹4.79

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}{28336754000.00} \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.

4.8%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{1371862000.00}{28336754000.00} \times 100 = 4.80\%

FORMULA

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