ETHICAL COMPLIANCE REPORT

HERITAGE FOODS

Sector:

Consumer Defensive

Industry:

Packaged Foods

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Milk & Milk Products
compliant
REVENUE RATIO FILTER
0%
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DEBT RATIO FILTER
7.2%
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LIQUIDITY RATIO FILTER
6.5%
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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{4720000.00}{38058690000.00} \times 100 = 0.00\%

FORMULA

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

Segment	Compliance	Value
Sale of Services	compliant	₹2.39
Milk & Milk Products	compliant	₹3,789.43
Scrap sales	compliant	₹2.08
Interest income	non-compliant	₹0.47
Dividend income	questionable	₹0.00
Other Income	compliant	₹11.49

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.

7.2%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{928230000.00}{12810990000.00} \times 100 = 7.20\%

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.

6.5%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{828300000.00}{12810990000.00} \times 100 = 6.50\%

FORMULA

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