ETHICAL COMPLIANCE REPORT

KEWAL KIRAN CLOTHING

Sector:

Consumer Cyclical

Industry:

Apparel Manufacturing

Overall Compliance

questionable

PRIMARY BUSINESS FILTER
Readymade Garments
compliant
REVENUE RATIO FILTER
4%
View Calculations
DEBT RATIO FILTER
0.3%
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LIQUIDITY RATIO FILTER
26.2%
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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{355548000.00}{8973725000.00} \times 100 = 4.00\%

FORMULA

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

Segment	Compliance	Value
Sales of Apparel and Lifestyle Accessories/products	compliant	₹855.17
Other Operating Revenue	compliant	₹5.33
Investment Gain	questionable	₹32.15
Interest Income	non-compliant	₹3.40
Other Income	compliant	₹1.32

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.

0.3%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{24781000.00}{8372267000.00} \times 100 = 0.30\%

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.

26.2%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{2191559000.00}{8372267000.00} \times 100 = 26.20\%

FORMULA

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