ETHICAL COMPLIANCE REPORT

GARWARE TECH FIBRES

Sector:

Consumer Cyclical

Industry:

Textile Manufacturing

Overall Compliance

questionable

questionable

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.

3.2%

Non Compliant
Questionable
Compliant

CALCULATION

Revenue Ratio:431901000.0013688007000.00×100=3.20%\textbf{Revenue Ratio:} \\[12pt] \dfrac{431901000.00}{13688007000.00} \times 100 = 3.20\%

FORMULA

Revenue Ratio:Unethical SegmentsTotal Revenue×100  ≤  3%\textbf{Revenue Ratio:} \\[12pt] \dfrac{\text{Unethical Segments}}{\text{Total Revenue}} \times 100 \; \leq \; 3\%
SegmentComplianceValue
Sale of Textiles
compliant
compliant		₹1,308.44
Other Operating Revenue
compliant
compliant		₹17.17
Investment Gain
questionable
questionable		₹38.91
Interest Income
non-compliant
non-compliant		₹4.28

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.

6.7%

CALCULATION

Debt Ratio:1188052000.0017709981000.00×100=6.70%\textbf{Debt Ratio:} \\[12pt] \dfrac{1188052000.00}{17709981000.00} \times 100 = 6.70\%

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.

9.8%

CALCULATION

Liquidity Ratio:1737398000.0017709981000.00×100=9.80%\textbf{Liquidity Ratio:} \\[12pt] \dfrac{1737398000.00}{17709981000.00} \times 100 = 9.80\%

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\%