ETHICAL COMPLIANCE REPORT

SHRIRAM FINANCE

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.

100.1%

Non Compliant
Questionable
Compliant

CALCULATION

Revenue Ratio:364464600000.00364464600000.00×100=100.10%\textbf{Revenue Ratio:} \\[12pt] \dfrac{364464600000.00}{364464600000.00} \times 100 = 100.10\%

FORMULA

Revenue Ratio:Unethical SegmentsTotal Revenue×100  ≤  3%\textbf{Revenue Ratio:} \\[12pt] \dfrac{\text{Unethical Segments}}{\text{Total Revenue}} \times 100 \; \leq \; 3\%
SegmentComplianceValue
Total Revenue From Operations
non-compliant
non-compliant		₹36,412.99
Other Income
non-compliant
non-compliant		₹33.47

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.

59.1%

CALCULATION

Debt Ratio:1466031200000.002482659400000.00×100=59.10%\textbf{Debt Ratio:} \\[12pt] \dfrac{1466031200000.00}{2482659400000.00} \times 100 = 59.10\%

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.

4.5%

CALCULATION

Liquidity Ratio:111728000000.002482659400000.00×100=4.50%\textbf{Liquidity Ratio:} \\[12pt] \dfrac{111728000000.00}{2482659400000.00} \times 100 = 4.50\%

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\%