ETHICAL COMPLIANCE REPORT

ARVIND FASHIONS

Sector:

Consumer Cyclical

Industry:

Apparel Manufacturing

Overall Compliance

compliant

compliant

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.

0.1%

Non Compliant
Questionable
Compliant

CALCULATION

Revenue Ratio:30700000.0042991500000.00×100=0.10%\textbf{Revenue Ratio:} \\[12pt] \dfrac{30700000.00}{42991500000.00} \times 100 = 0.10\%

FORMULA

Revenue Ratio:Unethical SegmentsTotal Revenue×100  ≤  3%\textbf{Revenue Ratio:} \\[12pt] \dfrac{\text{Unethical Segments}}{\text{Total Revenue}} \times 100 \; \leq \; 3\%
SegmentComplianceValue
interest Income
non-compliant
non-compliant		₹3.07
Branded Apparels and accessories
compliant
compliant		₹4,259.12
other income
compliant
compliant		₹36.96

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.

12.9%

CALCULATION

Debt Ratio:4660900000.0036069700000.00×100=12.90%\textbf{Debt Ratio:} \\[12pt] \dfrac{4660900000.00}{36069700000.00} \times 100 = 12.90\%

FORMULA

Debt Ratio:Interest Bearing DebtTotal Assets×100  ≤  30%\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.

4.7%

CALCULATION

Liquidity Ratio:1679800000.0036069700000.00×100=4.70%\textbf{Liquidity Ratio:} \\[12pt] \dfrac{1679800000.00}{36069700000.00} \times 100 = 4.70\%

FORMULA

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