ETHICAL COMPLIANCE REPORT

LUX INDUSTRIES

Sector:

Consumer Cyclical

Industry:

Apparel Manufacturing

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Textiles
compliant
REVENUE RATIO FILTER
0.6%
View Calculations
DEBT RATIO FILTER
8.6%
View Calculations
LIQUIDITY RATIO FILTER
2.4%
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.

0.6%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{138900000.00}{23452900000.00} \times 100 = 0.60\%

FORMULA

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

Segment	Compliance	Value
Textiles Products	compliant	₹2,314.02
Other Income	compliant	₹7.11
Sale of Services	compliant	₹0.34
Investment Gain	questionable	₹2.10
Interest Income	non-compliant	₹11.79
Other Operating Income	compliant	₹9.93

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

\textbf{Debt Ratio:} \\[12pt] \dfrac{1887500000.00}{21893500000.00} \times 100 = 8.60\%

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.

2.4%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{526700000.00}{21893500000.00} \times 100 = 2.40\%

FORMULA

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