ETHICAL COMPLIANCE REPORT

SHARDA MOTOR INDS

Sector:

Consumer Cyclical

Industry:

Auto Parts

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Automotive Components
compliant
REVENUE RATIO FILTER
1.8%
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DEBT RATIO FILTER
0%
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LIQUIDITY RATIO FILTER
16.3%
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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.

1.8%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{518478000.00}{28971168000.00} \times 100 = 1.80\%

FORMULA

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

Segment	Compliance	Value
Sale of Services	compliant	₹5.80
Other Income	compliant	₹36.01
Other Operating Revenue	compliant	₹26.89
Investment Gain	questionable	₹20.74
Interest Income	non-compliant	₹31.11
Automotive Components	compliant	₹2,776.57

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.

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{0.00}{16278460000.00} \times 100 = 0.00\%

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.

16.3%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{2646400000.00}{16278460000.00} \times 100 = 16.30\%

FORMULA

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