ETHICAL COMPLIANCE REPORT

KRBL

Sector:

Consumer Defensive

Industry:

Packaged Foods

Overall Compliance

compliant

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.

1.5%

Non Compliant
Questionable
Compliant

CALCULATION

Revenue Ratio:835200000.0054816500000.00×100=1.50%\textbf{Revenue Ratio:} \\[12pt] \dfrac{835200000.00}{54816500000.00} \times 100 = 1.50\%

FORMULA

Revenue Ratio:Unethical SegmentsTotal Revenue×100    3%\textbf{Revenue Ratio:} \\[12pt] \dfrac{\text{Unethical Segments}}{\text{Total Revenue}} \times 100 \; \leq \; 3\%
SegmentComplianceValue
Sale of Product - Packaged Foods & Meats
compliant
compliant
₹5,262.50
Sale of Electricity
compliant
compliant
₹102.04
Interest Income
non-compliant
non-compliant
₹36.97
Other Operating Revenue
compliant
compliant
₹20.15
Investment Gain
questionable
questionable
₹46.55
Other Income
compliant
compliant
₹13.44

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.

8.6%

CALCULATION

Debt Ratio:5070500000.0059270300000.00×100=8.60%\textbf{Debt Ratio:} \\[12pt] \dfrac{5070500000.00}{59270300000.00} \times 100 = 8.60\%

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.

0.5%

CALCULATION

Liquidity Ratio:302000000.0059270300000.00×100=0.50%\textbf{Liquidity Ratio:} \\[12pt] \dfrac{302000000.00}{59270300000.00} \times 100 = 0.50\%

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\%