ETHICAL COMPLIANCE REPORT

ITC

Sector:

Consumer Defensive

Industry:

Tobacco

Overall Compliance

non-compliant

PRIMARY BUSINESS FILTER
Fmcg
compliant
REVENUE RATIO FILTER
48.2%
View Calculations
DEBT RATIO FILTER
0%
View Calculations
LIQUIDITY RATIO FILTER
0.7%
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.

48.2%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{357914100000.00}{743026600000.00} \times 100 = 48.20\%

FORMULA

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

Segment	Compliance	Value
Cigarettes	non-compliant	₹30,596.59
Unmanufactured Tobacco	non-compliant	₹2,612.06
Sale of Services	compliant	₹2,980.10
other products	compliant	₹33,916.54
Government grants	compliant	₹659.09
interest income	non-compliant	₹1,592.41
dividend	questionable	₹990.35
Other non-operating income	compliant	₹955.52

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.

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{32800000.00}{8732760000000.00} \times 100 = 0.00\%

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.

0.7%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{62176900000.00}{8732760000000.00} \times 100 = 0.70\%

FORMULA

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