ETHICAL COMPLIANCE REPORT

TATA CONSUMER PRODUCT

Sector:

Consumer Defensive

Industry:

Packaged Foods

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Food and Beverages
compliant
REVENUE RATIO FILTER
1.3%
View Calculations
DEBT RATIO FILTER
10.5%
View Calculations
LIQUIDITY RATIO FILTER
8.8%
View Calculations

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.

1.3%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{2062900000.00}{154514699999.00} \times 100 = 1.30\%

FORMULA

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

Segment	Compliance	Value
Revenue From Sale of Goods	compliant	₹15,092.77
Sale of Services	compliant	₹5.74
Royalty Income	compliant	₹40.79
Government Incentive	compliant	₹22.33
Miscellaneous Receipts	compliant	₹44.22
Other Non Operating Income	compliant	₹39.33
Interest Income & Dividend	non-compliant	₹206.29

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.

10.5%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{29538500000.00}{280209400000.00} \times 100 = 10.50\%

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.

8.8%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{24544900000.00}{280209400000.00} \times 100 = 8.80\%

FORMULA

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