ETHICAL COMPLIANCE REPORT

SUNDARAM FINANCE HOLD

Sector:

Industrials

Industry:

Specialty Business Services

Overall Compliance

questionable

questionable

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.

97.8%

Non Compliant
Questionable
Compliant

CALCULATION

Revenue Ratio:2906804000.002971732000.00×100=97.80%\textbf{Revenue Ratio:} \\[12pt] \dfrac{2906804000.00}{2971732000.00} \times 100 = 97.80\%

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		₹2.32
Net Gain on Sale of Investments
questionable
questionable		₹17.70
Net gain on fair value changes
questionable
questionable		₹38.38
Gain on derecognition of financial instrument
questionable
questionable		₹172.19
Interest income
non-compliant
non-compliant		₹0.15
Other Income
compliant
compliant		₹5.70
Support Services
questionable
questionable		₹59.94
Learning Income
compliant
compliant		₹0.79

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.

0.4%

CALCULATION

Debt Ratio:179050000.0049478254000.00×100=0.40%\textbf{Debt Ratio:} \\[12pt] \dfrac{179050000.00}{49478254000.00} \times 100 = 0.40\%

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.

3.7%

CALCULATION

Liquidity Ratio:1825645000.0049478254000.00×100=3.70%\textbf{Liquidity Ratio:} \\[12pt] \dfrac{1825645000.00}{49478254000.00} \times 100 = 3.70\%

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\%