ETHICAL COMPLIANCE REPORT

KDDL

Sector:

Consumer Cyclical

Industry:

Luxury Goods

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Watch Components
compliant
REVENUE RATIO FILTER
1.4%
View Calculations
DEBT RATIO FILTER
6.4%
View Calculations
LIQUIDITY RATIO FILTER
32.3%
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.

1.4%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{203648000.00}{14197689000.00} \times 100 = 1.40\%

FORMULA

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

Segment	Compliance	Value
Watch and watch accessories	compliant	₹993.03
Precision and watch components	compliant	₹352.38
Sale of Services	compliant	₹17.29
Others	compliant	₹15.00
Investment Gain	questionable	₹0.23
Other Income	compliant	₹8.38
Interest Income	non-compliant	₹20.13
Other Operating Income	compliant	₹8.95
Export Incentives	compliant	₹4.38

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.

6.4%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{1045191000.00}{16415272000.00} \times 100 = 6.40\%

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.

32.3%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{5297693000.00}{16415272000.00} \times 100 = 32.30\%

FORMULA

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