ETHICAL COMPLIANCE REPORT

MMTC

MMTC Logo

Sector:

Industrials

Industry:

Conglomerates

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.

75.7%

Non Compliant
Questionable
Compliant

CALCULATION

Revenue Ratio:1547200000.002043300000.00×100=75.70%\textbf{Revenue Ratio:} \\[12pt] \dfrac{1547200000.00}{2043300000.00} \times 100 = 75.70\%

FORMULA

Revenue Ratio:Unethical SegmentsTotal Revenue×100  ≤  3%\textbf{Revenue Ratio:} \\[12pt] \dfrac{\text{Unethical Segments}}{\text{Total Revenue}} \times 100 \; \leq \; 3\%
SegmentComplianceValue
Sale of Products
compliant
compliant		₹5.13
Others
compliant
compliant		₹0.21
Interest Income
non-compliant
non-compliant		₹151.09
Dividend income
questionable
questionable		₹3.63
Other Income
compliant
compliant		₹44.27

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.

4.2%

CALCULATION

Debt Ratio:1531200000.0036866800000.00×100=4.20%\textbf{Debt Ratio:} \\[12pt] \dfrac{1531200000.00}{36866800000.00} \times 100 = 4.20\%

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.

36%

CALCULATION

Liquidity Ratio:13278000000.0036866800000.00×100=36.00%\textbf{Liquidity Ratio:} \\[12pt] \dfrac{13278000000.00}{36866800000.00} \times 100 = 36.00\%

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\%