ETHICAL COMPLIANCE REPORT

ARVIND

Sector:

Consumer Cyclical

Industry:

Textile Manufacturing

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Textile Company
compliant
REVENUE RATIO FILTER
0%
View Calculations
DEBT RATIO FILTER
18.3%
View Calculations
LIQUIDITY RATIO FILTER
1%
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.

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{30700000.00}{77785800000.00} \times 100 = 0.00\%

FORMULA

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

Segment	Compliance	Value
Other Income	compliant	₹37.76
Advanced Material	compliant	₹1,425.04
Sale of Textiles	compliant	₹5,775.42
Others	compliant	₹537.29
Interest income on financial assets measured at amortized cost	non-compliant	₹3.07

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.

18.3%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{13253800000.00}{72603700000.00} \times 100 = 18.30\%

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.

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{758100000.00}{72603700000.00} \times 100 = 1.00\%

FORMULA

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