ETHICAL COMPLIANCE REPORT

BALKRISHNA IND.

Sector:

Consumer Cyclical

Industry:

Auto Parts

Overall Compliance

questionable

PRIMARY BUSINESS FILTER
Tyres Manufacturer
compliant
REVENUE RATIO FILTER
4.6%
View Calculations
DEBT RATIO FILTER
22.6%
View Calculations
LIQUIDITY RATIO FILTER
0.6%
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.

4.6%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{4492200000.00}{98180900000.00} \times 100 = 4.60\%

FORMULA

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

Segment	Compliance	Value
Sale of Tyres	compliant	₹9,304.37
Export Incentives	compliant	₹28.58
Scrap Sales	compliant	₹34.62
Others	compliant	₹1.30
Other Income	questionable	₹193.11
Interest & other	non-compliant	₹256.11

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.

22.6%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{30954300000.00}{136845400000.00} \times 100 = 22.60\%

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.

0.6%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{800000000.00}{136845400000.00} \times 100 = 0.60\%

FORMULA

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