ETHICAL COMPLIANCE REPORT

IGARASHI MOTORS INDIA

Sector:

Consumer Cyclical

Industry:

Auto Parts

Overall Compliance

compliant

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.

0.2%

Non Compliant
Questionable
Compliant

CALCULATION

Revenue Ratio:12505000.007266682000.00×100=0.20%\textbf{Revenue Ratio:} \\[12pt] \dfrac{12505000.00}{7266682000.00} \times 100 = 0.20\%

FORMULA

Revenue Ratio:Unethical SegmentsTotal Revenue×100  ≤  3%\textbf{Revenue Ratio:} \\[12pt] \dfrac{\text{Unethical Segments}}{\text{Total Revenue}} \times 100 \; \leq \; 3\%
SegmentComplianceValue
Automotive
compliant
compliant		₹581.04
Non-automotive
compliant
compliant		₹144.00
Interest income
non-compliant
non-compliant		₹0.24
Net Gain on Sale of Investments
questionable
questionable		₹1.01
Other Income
compliant
compliant		₹0.37

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.

14.5%

CALCULATION

Debt Ratio:1121883000.007735981000.00×100=14.50%\textbf{Debt Ratio:} \\[12pt] \dfrac{1121883000.00}{7735981000.00} \times 100 = 14.50\%

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.

0.6%

CALCULATION

Liquidity Ratio:45634000.007735981000.00×100=0.60%\textbf{Liquidity Ratio:} \\[12pt] \dfrac{45634000.00}{7735981000.00} \times 100 = 0.60\%

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\%