ETHICAL COMPLIANCE REPORT

TVS MOTOR COMPANY

Sector:

Consumer Cyclical

Industry:

Auto Manufacturers

Overall Compliance

non-compliant

PRIMARY BUSINESS FILTER
Automobile Company
compliant
REVENUE RATIO FILTER
13.2%
View Calculations
DEBT RATIO FILTER
59.9%
View Calculations
LIQUIDITY RATIO FILTER
5.7%
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.

13.2%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{51963600000.00}{392505600000.00} \times 100 = 13.20\%

FORMULA

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

Segment	Compliance	Value
Sale of Products	compliant	₹32,956.91
Sale of Services	compliant	₹77.47
Interest Income of Financial Enterprise	non-compliant	₹5,111.07
Other non-operating income	compliant	₹20.53
Interest & dividend	non-compliant	₹85.29
other income	compliant	₹999.29

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.

59.9%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{252866200000.00}{422204600000.00} \times 100 = 59.90\%

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.

5.7%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{24257300000.00}{422204600000.00} \times 100 = 5.70\%

FORMULA

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