ETHICAL COMPLIANCE REPORT

TECH MAHINDRA

Sector:

Technology

Industry:

Information Technology Services

Overall Compliance

non-compliant

PRIMARY BUSINESS FILTER
Tech Services
compliant
REVENUE RATIO FILTER
52.5%
View Calculations
DEBT RATIO FILTER
3.5%
View Calculations
LIQUIDITY RATIO FILTER
10.9%
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.

52.5%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{277943000000.00}{529124000000.00} \times 100 = 52.50\%

FORMULA

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

Segment	Compliance	Value
Manufacturing	compliant	₹9,225.50
Technology	compliant	₹5,574.10
Retail, Transport and Logistics	compliant	₹4,233.90
Financial Services	non-compliant	₹8,321.10
Communications and Media & Entertainment	questionable	₹19,167.20
interest income	non-compliant	₹306.00
other income	compliant	₹610.90
Other	compliant	₹5,473.70

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.

3.5%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{15310000000.00}{434236000000.00} \times 100 = 3.50\%

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.

10.9%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{47355000000.00}{434236000000.00} \times 100 = 10.90\%

FORMULA

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