ETHICAL COMPLIANCE REPORT

TATA MOTORS

Sector:

Consumer Cyclical

Industry:

Auto Manufacturers

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Automobile Company
compliant
REVENUE RATIO FILTER
1.4%
View Calculations
DEBT RATIO FILTER
26.6%
View Calculations
LIQUIDITY RATIO FILTER
12.4%
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.

1.4%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{64767700000.00}{4473664599998.00} \times 100 = 1.40\%

FORMULA

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

Segment	Compliance	Value
other income	compliant	₹3,304.83
Other Operating Revenue	compliant	₹2,943.65
Interest Income	non-compliant	₹2,645.09
vehicle	compliant	₹3,75,685.51
spare parts	compliant	₹36,273.87
Miscellaneous products	compliant	₹15,008.28
finance revenue	non-compliant	₹3,831.68
service & other	compliant	₹7,673.55

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.

26.6%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{985000900000.00}{3706639600000.00} \times 100 = 26.60\%

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.

12.4%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{458066900000.00}{3706639600000.00} \times 100 = 12.40\%

FORMULA

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