ETHICAL COMPLIANCE REPORT

MAHINDRA LIFESPACE DEVLTD

Sector:

Real Estate

Industry:

Real Estate - Development

Overall Compliance

non-compliant

PRIMARY BUSINESS FILTER
Real Estate
compliant
REVENUE RATIO FILTER
69.9%
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DEBT RATIO FILTER
17.5%
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LIQUIDITY RATIO FILTER
2%
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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.

69.9%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{687001000.00}{983064000.00} \times 100 = 69.90\%

FORMULA

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

Segment	Compliance	Value
Interest Income	non-compliant	₹19.91
investment gain	questionable	₹48.79
Miscellaneous Income	compliant	₹10.92
Projects, Project Management & Development	compliant	₹1.13
Operating of Commercial Complexes	compliant	₹4.44
Revenue from Projects	compliant	₹13.12

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.

17.5%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{8677231000.00}{49630500000.00} \times 100 = 17.50\%

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{976581000.00}{49630500000.00} \times 100 = 2.00\%

FORMULA

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