ETHICAL COMPLIANCE REPORT

KITEX GARMENTS

Sector:

Consumer Cyclical

Industry:

Apparel Manufacturing

Overall Compliance

non-compliant

non-compliant

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.

2.3%

Non Compliant
Questionable
Compliant

CALCULATION

Revenue Ratio:142499000.006311668000.00×100=2.30%\textbf{Revenue Ratio:} \\[12pt] \dfrac{142499000.00}{6311668000.00} \times 100 = 2.30\%

FORMULA

Revenue Ratio:Unethical SegmentsTotal Revenue×100  ≤  3%\textbf{Revenue Ratio:} \\[12pt] \dfrac{\text{Unethical Segments}}{\text{Total Revenue}} \times 100 \; \leq \; 3\%
SegmentComplianceValue
Other Operating Revenue
compliant
compliant		₹40.26
Sale of Products
compliant
compliant		₹576.65
Other Income
questionable
questionable		₹12.71
Interest income
non-compliant
non-compliant		₹1.54

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.

35.4%

CALCULATION

Debt Ratio:6811967000.0019251197000.00×100=35.40%\textbf{Debt Ratio:} \\[12pt] \dfrac{6811967000.00}{19251197000.00} \times 100 = 35.40\%

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.

3.6%

CALCULATION

Liquidity Ratio:692342000.0019251197000.00×100=3.60%\textbf{Liquidity Ratio:} \\[12pt] \dfrac{692342000.00}{19251197000.00} \times 100 = 3.60\%

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\%