ETHICAL COMPLIANCE REPORT

MAHINDRA & MAHINDRA

MAHINDRA & MAHINDRA Logo

Sector:

Consumer Cyclical

Industry:

Auto Manufacturers

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.

11.7%

Non Compliant
Questionable
Compliant

CALCULATION

Revenue Ratio:164925200000.001412546900000.00×100=11.70%\textbf{Revenue Ratio:} \\[12pt] \dfrac{164925200000.00}{1412546900000.00} \times 100 = 11.70\%

FORMULA

Revenue Ratio:Unethical SegmentsTotal Revenue×100  ≤  3%\textbf{Revenue Ratio:} \\[12pt] \dfrac{\text{Unethical Segments}}{\text{Total Revenue}} \times 100 \; \leq \; 3\%
SegmentComplianceValue
From Others
compliant
compliant		₹1,361.12
From financial services
non-compliant
non-compliant		₹14,587.20
Gain on change in ownership
compliant
compliant		₹748.33
Interest income from associates and joint ventures
non-compliant
non-compliant		₹50.64
Dividend income
questionable
questionable		₹1,080.70
Interest Income
non-compliant
non-compliant		₹773.98
Other Income
compliant
compliant		₹321.74
Sale of Automobiles & service
compliant
compliant		₹1,22,330.98

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.

43.7%

CALCULATION

Debt Ratio:1032032300000.002363007300000.00×100=43.70%\textbf{Debt Ratio:} \\[12pt] \dfrac{1032032300000.00}{2363007300000.00} \times 100 = 43.70\%

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.

5.1%

CALCULATION

Liquidity Ratio:120627500000.002363007300000.00×100=5.10%\textbf{Liquidity Ratio:} \\[12pt] \dfrac{120627500000.00}{2363007300000.00} \times 100 = 5.10\%

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\%