ETHICAL COMPLIANCE REPORT

VARROC ENGINEERING.

Sector:

Consumer Cyclical

Industry:

Auto Parts

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Auto Parts & Equipment
compliant
REVENUE RATIO FILTER
0.1%
View Calculations
DEBT RATIO FILTER
26.5%
View Calculations
LIQUIDITY RATIO FILTER
2.9%
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.

0.1%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{93520000.00}{75940740000.00} \times 100 = 0.10\%

FORMULA

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

Segment	Compliance	Value
Electrical & Automotive Lighting Auto Parts	compliant	₹7,349.90
Other Operating Income	compliant	₹202.04
Investment Gain	questionable	₹1.88
Other Income	compliant	₹32.79
Interest Income	non-compliant	₹7.48

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.

26.5%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{12093780000.00}{45604730000.00} \times 100 = 26.50\%

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.

2.9%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{1302920000.00}{45604730000.00} \times 100 = 2.90\%

FORMULA

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