ETHICAL COMPLIANCE REPORT

CEAT

Sector:

Consumer Cyclical

Industry:

Auto Parts

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Tires & Rubber
compliant
REVENUE RATIO FILTER
0%
View Calculations
DEBT RATIO FILTER
16.3%
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.

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{6000000.00}{119632100000.00} \times 100 = 0.00\%

FORMULA

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

Segment	Compliance	Value
Automotive Tyres and Others	compliant	₹11,775.67
Other Operating Revenue	compliant	₹161.77
Royalty Income	compliant	₹6.04
interest Income	non-compliant	₹0.60
Gain on disposal of investments	compliant	₹0.29
Other Income	compliant	₹18.84

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.

16.3%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{16289000000.00}{99945000000.00} \times 100 = 16.30\%

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{590800000.00}{99945000000.00} \times 100 = 0.60\%

FORMULA

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