ETHICAL COMPLIANCE REPORT

ASHOK LEYLAND

Sector:

Industrials

Industry:

Farm & Heavy Construction Machinery

Overall Compliance

non-compliant

PRIMARY BUSINESS FILTER
Automobile Company
compliant
REVENUE RATIO FILTER
10.8%
View Calculations
DEBT RATIO FILTER
60%
View Calculations
LIQUIDITY RATIO FILTER
10.5%
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.

10.8%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{49606000000.00}{466831100000.00} \times 100 = 10.80\%

FORMULA

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

Segment	Compliance	Value
Commercial Vehicles & spare parts	compliant	₹39,328.05
Job Work Income	compliant	₹2,194.11
interest & other	non-compliant	₹4,960.60
Scrap Sales & other	compliant	₹200.35

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.

60%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{405643400000.00}{676599540000.00} \times 100 = 60.00\%

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.

10.5%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{70800500000.00}{676599540000.00} \times 100 = 10.50\%

FORMULA

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