ETHICAL COMPLIANCE REPORT

MUTHOOT FINANCE

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Sector:

Financial Services

Industry:

Credit Services

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.

100%

Non Compliant
Questionable
Compliant

CALCULATION

Revenue Ratio:22854900000.0022854900000.00×100=100.00%\textbf{Revenue Ratio:} \\[12pt] \dfrac{22854900000.00}{22854900000.00} \times 100 = 100.00\%

FORMULA

Revenue Ratio:Unethical SegmentsTotal Revenue×100  ≤  3%\textbf{Revenue Ratio:} \\[12pt] \dfrac{\text{Unethical Segments}}{\text{Total Revenue}} \times 100 \; \leq \; 3\%
SegmentComplianceValue
Interest income
non-compliant
non-compliant		₹1,984.91
Other Income
questionable
questionable		₹300.59

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.

8.7%

CALCULATION

Debt Ratio:83593690000.00964694200000.00×100=8.70%\textbf{Debt Ratio:} \\[12pt] \dfrac{83593690000.00}{964694200000.00} \times 100 = 8.70\%

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.

1.6%

CALCULATION

Liquidity Ratio:15787270000.00964694200000.00×100=1.60%\textbf{Liquidity Ratio:} \\[12pt] \dfrac{15787270000.00}{964694200000.00} \times 100 = 1.60\%

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\%