ETHICAL COMPLIANCE REPORT

ESAF SMALL FINANCE BANK L

Sector:

Financial Services

Industry:

Banks - Regional

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.

100%

Non Compliant
Questionable
Compliant

CALCULATION

Revenue Ratio:42602520000.0042602520000.00×100=100.00%\textbf{Revenue Ratio:} \\[12pt] \dfrac{42602520000.00}{42602520000.00} \times 100 = 100.00\%

FORMULA

Revenue Ratio:Unethical SegmentsTotal Revenue×100  ≤  3%\textbf{Revenue Ratio:} \\[12pt] \dfrac{\text{Unethical Segments}}{\text{Total Revenue}} \times 100 \; \leq \; 3\%
SegmentComplianceValue
Interest income
non-compliant
non-compliant		₹3,818.43
Other Income
questionable
questionable		₹441.83

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.

12.4%

CALCULATION

Debt Ratio:32225300000.00260868821000.00×100=12.40%\textbf{Debt Ratio:} \\[12pt] \dfrac{32225300000.00}{260868821000.00} \times 100 = 12.40\%

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.

5.5%

CALCULATION

Liquidity Ratio:14229248000.00260868821000.00×100=5.50%\textbf{Liquidity Ratio:} \\[12pt] \dfrac{14229248000.00}{260868821000.00} \times 100 = 5.50\%

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\%