ETHICAL COMPLIANCE REPORT

GRASIM INDUSTRIES

GRASIM INDUSTRIES Logo

Sector:

Basic Materials

Industry:

Building Materials

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.

26.6%

Non Compliant
Questionable
Compliant

CALCULATION

Revenue Ratio:352328500000.001322425800000.00×100=26.60%\textbf{Revenue Ratio:} \\[12pt] \dfrac{352328500000.00}{1322425800000.00} \times 100 = 26.60\%

FORMULA

Revenue Ratio:Unethical SegmentsTotal Revenue×100  ≤  3%\textbf{Revenue Ratio:} \\[12pt] \dfrac{\text{Unethical Segments}}{\text{Total Revenue}} \times 100 \; \leq \; 3\%
SegmentComplianceValue
Manufactured Products & service
compliant
compliant		₹95,610.25
Income From Health Insurance Premium (net)
questionable
questionable		₹14,512.21
Financial Services
non-compliant
non-compliant		₹1,468.80
interest & dividend
non-compliant
non-compliant		₹17,083.61
Fair Value Changes of Financial Services Business
non-compliant
non-compliant		₹845.15
Income on derecognised (assigned) loans
non-compliant
non-compliant		₹58.98
other income
compliant
compliant		₹1,399.48
other
non-compliant
non-compliant		₹1,264.10

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.

32.7%

CALCULATION

Debt Ratio:1351022100000.004125390800000.00×100=32.70%\textbf{Debt Ratio:} \\[12pt] \dfrac{1351022100000.00}{4125390800000.00} \times 100 = 32.70\%

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.

1.1%

CALCULATION

Liquidity Ratio:46493000000.004125390800000.00×100=1.10%\textbf{Liquidity Ratio:} \\[12pt] \dfrac{46493000000.00}{4125390800000.00} \times 100 = 1.10\%

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\%