ETHICAL COMPLIANCE REPORT

GODREJ INDUSTRIES

Sector:

Industrials

Industry:

Conglomerates

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.

5.3%

Non Compliant
Questionable
Compliant

CALCULATION

Revenue Ratio:9684700000.00181447499999.00×100=5.30%\textbf{Revenue Ratio:} \\[12pt] \dfrac{9684700000.00}{181447499999.00} \times 100 = 5.30\%

FORMULA

Revenue Ratio:Unethical SegmentsTotal Revenue×100  ≤  3%\textbf{Revenue Ratio:} \\[12pt] \dfrac{\text{Unethical Segments}}{\text{Total Revenue}} \times 100 \; \leq \; 3\%
SegmentComplianceValue
Animal Feeds
compliant
compliant		₹5,000.08
Veg Oils
compliant
compliant		₹1,652.60
Estate and Property Development
compliant
compliant		₹2,880.71
Dairy
compliant
compliant		₹1,572.38
Crop Protection
compliant
compliant		₹1,219.61
Other operating income
compliant
compliant		₹330.89
finance
questionable
questionable		₹749.25
hospitality
compliant
compliant		₹40.66
other income
compliant
compliant		₹518.01
interest & other
non-compliant
non-compliant		₹219.22
other income
compliant
compliant		₹1,301.02
Chemicals
compliant
compliant		₹2,660.32

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.

46.8%

CALCULATION

Debt Ratio:288074700000.00615482000000.00×100=46.80%\textbf{Debt Ratio:} \\[12pt] \dfrac{288074700000.00}{615482000000.00} \times 100 = 46.80\%

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.

5.7%

CALCULATION

Liquidity Ratio:35096600000.00615482000000.00×100=5.70%\textbf{Liquidity Ratio:} \\[12pt] \dfrac{35096600000.00}{615482000000.00} \times 100 = 5.70\%

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\%