ETHICAL COMPLIANCE REPORT

JK TYRE & INDUSTRIES

Sector:

Consumer Cyclical

Industry:

Auto Parts

Overall Compliance

questionable

PRIMARY BUSINESS FILTER
Tyres & Rubber Products
compliant
REVENUE RATIO FILTER
4.4%
View Calculations
DEBT RATIO FILTER
31.7%
View Calculations
LIQUIDITY RATIO FILTER
5.5%
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.

4.4%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{6796500000.00}{155563100000.00} \times 100 = 4.40\%

FORMULA

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

Segment	Compliance	Value
Other Income	compliant	₹7.24
Tyres, Tubes & Flaps	compliant	₹14,649.72
Other goods	compliant	₹139.50
interest & other	non-compliant	₹679.65
Sale of service	compliant	₹80.20

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.

31.7%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{44734300000.00}{140944900000.00} \times 100 = 31.70\%

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.

5.5%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{7695100000.00}{140944900000.00} \times 100 = 5.50\%

FORMULA

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