ETHICAL COMPLIANCE REPORT

ASIAN PAINTS

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Sector:

Basic Materials

Industry:

Specialty Chemicals

Overall Compliance

compliant

compliant

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.

0.5%

Non Compliant
Questionable
Compliant

CALCULATION

Revenue Ratio:1699300000.00361826900000.00×100=0.50%\textbf{Revenue Ratio:} \\[12pt] \dfrac{1699300000.00}{361826900000.00} \times 100 = 0.50\%

FORMULA

Revenue Ratio:Unethical SegmentsTotal Revenue×100  ≤  3%\textbf{Revenue Ratio:} \\[12pt] \dfrac{\text{Unethical Segments}}{\text{Total Revenue}} \times 100 \; \leq \; 3\%
SegmentComplianceValue
incentive
compliant
compliant		₹112.61
Other Income
compliant
compliant		₹518.03
Paints, décor and related products
compliant
compliant		₹35,248.88
Painting, décor and related services
compliant
compliant		₹133.24
interest
non-compliant
non-compliant		₹169.93

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.

3.7%

CALCULATION

Debt Ratio:11071400000.00299240900000.00×100=3.70%\textbf{Debt Ratio:} \\[12pt] \dfrac{11071400000.00}{299240900000.00} \times 100 = 3.70\%

FORMULA

Debt Ratio:Interest Bearing DebtTotal Assets×100  ≤  30%\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.

3.6%

CALCULATION

Liquidity Ratio:10840100000.00299240900000.00×100=3.60%\textbf{Liquidity Ratio:} \\[12pt] \dfrac{10840100000.00}{299240900000.00} \times 100 = 3.60\%

FORMULA

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