ETHICAL COMPLIANCE REPORT

EICHER MOTORS

Sector:

Consumer Cyclical

Industry:

Auto Manufacturers

Overall Compliance

non-compliant

PRIMARY BUSINESS FILTER
Automobile Company
compliant
REVENUE RATIO FILTER
5.6%
View Calculations
DEBT RATIO FILTER
1.2%
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.

5.6%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{9900100000.00}{175214400000.00} \times 100 = 5.60\%

FORMULA

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

Segment	Compliance	Value
Two Wheelers	compliant	₹14,027.56
Spare Parts and Other Components	compliant	₹1,172.87
Other Operating Revenue	compliant	₹301.76
Others	compliant	₹85.86
Interest & other	non-compliant	₹990.01
Accessories and Other Allied Products	compliant	₹943.38

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.

1.2%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{2755800000.00}{231279300000.00} \times 100 = 1.20\%

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{1463100000.00}{231279300000.00} \times 100 = 0.60\%

FORMULA

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