ETHICAL COMPLIANCE REPORT

MRF

MRF Logo

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.

1%

Non Compliant
Questionable
Compliant

CALCULATION

Revenue Ratio:2642300000.00254860500000.00×100=1.00%\textbf{Revenue Ratio:} \\[12pt] \dfrac{2642300000.00}{254860500000.00} \times 100 = 1.00\%

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 Tyres
compliant
compliant		₹24,979.17
Sale of services
compliant
compliant		₹31.64
Scrap Sales
compliant
compliant		₹151.12
Subsidy From State Government
compliant
compliant		₹7.28
Other Income
compliant
compliant		₹52.61
Interest & other
non-compliant
non-compliant		₹264.23

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.

7.7%

CALCULATION

Debt Ratio:20751200000.00268494300000.00×100=7.70%\textbf{Debt Ratio:} \\[12pt] \dfrac{20751200000.00}{268494300000.00} \times 100 = 7.70\%

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.

1.3%

CALCULATION

Liquidity Ratio:3453800000.00268494300000.00×100=1.30%\textbf{Liquidity Ratio:} \\[12pt] \dfrac{3453800000.00}{268494300000.00} \times 100 = 1.30\%

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\%