ETHICAL COMPLIANCE REPORT

GODREJ CONSUMER PRODUCTS

Sector:

Consumer Defensive

Industry:

Household & Personal Products

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Consumer Discretionary
compliant
REVENUE RATIO FILTER
1.7%
View Calculations
DEBT RATIO FILTER
17.1%
View Calculations
LIQUIDITY RATIO FILTER
3%
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.

1.7%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{2461000000.00}{143650600000.00} \times 100 = 1.70\%

FORMULA

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

Segment	Compliance	Value
Personal Care	compliant	₹8,472.84
export incentive, GST refunds, scrap sales	compliant	₹122.05
Home Care	compliant	₹5,501.22
Others	compliant	₹22.85
interest	non-compliant	₹246.10

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.

17.1%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{31546400000.00}{184958900000.00} \times 100 = 17.10\%

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.

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{5469400000.00}{184958900000.00} \times 100 = 3.00\%

FORMULA

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