ETHICAL COMPLIANCE REPORT

CHOLAMANDALAM IN & FIN CO

Sector:

Financial Services

Industry:

Credit Services

Overall Compliance

non-compliant

non-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.

98.6%

Non Compliant
Questionable
Compliant

CALCULATION

Revenue Ratio:191396200000.00194198700000.00×100=98.60%\textbf{Revenue Ratio:} \\[12pt] \dfrac{191396200000.00}{194198700000.00} \times 100 = 98.60\%

FORMULA

Revenue Ratio:Unethical SegmentsTotal Revenue×100  ≤  3%\textbf{Revenue Ratio:} \\[12pt] \dfrac{\text{Unethical Segments}}{\text{Total Revenue}} \times 100 \; \leq \; 3\%
SegmentComplianceValue
Other Income
compliant
compliant		₹280.25
Total Revenue From Operations
non-compliant
non-compliant		₹19,139.62

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.

16.7%

CALCULATION

Debt Ratio:261510200000.001566864100000.00×100=16.70%\textbf{Debt Ratio:} \\[12pt] \dfrac{261510200000.00}{1566864100000.00} \times 100 = 16.70\%

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.

2.8%

CALCULATION

Liquidity Ratio:43937300000.001566864100000.00×100=2.80%\textbf{Liquidity Ratio:} \\[12pt] \dfrac{43937300000.00}{1566864100000.00} \times 100 = 2.80\%

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\%