ETHICAL COMPLIANCE REPORT

MRF

Sector:

Consumer Cyclical

Industry:

Auto Parts

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Manufacture Tyres
compliant
DEBT RATIO FILTER
7.7%
View Calculations
LIQUIDITY RATIO FILTER
1.3%
View Calculations
REVENUE RATIO FILTER
1%
View Calculations

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

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

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.

1.3%

CALCULATION

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

FORMULA

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

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.

Non Compliant

Questionable

Compliant

CALCULATION

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

FORMULA

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

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