ETHICAL COMPLIANCE REPORT

NESTLE INDIA

Sector:

Consumer Defensive

Industry:

Packaged Foods

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Foods Segment
compliant
REVENUE RATIO FILTER
0.6%
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DEBT RATIO FILTER
0.3%
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LIQUIDITY RATIO FILTER
7.4%
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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.

0.6%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{1479600000.00}{245418500000.00} \times 100 = 0.60\%

FORMULA

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

Segment	Compliance	Value
Milk Products and Nutrition	compliant	₹9,868.72
Prepared Dishes and Cooking Aids	compliant	₹7,391.44
Powdered and Liquid Beverages	compliant	₹3,020.65
Confectionery	compliant	₹3,994.67
Other Operating Revenue	compliant	₹118.41
Interest Income	non-compliant	₹147.96

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{311400000.00}{105230600000.00} \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.

7.4%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{7788500000.00}{105230600000.00} \times 100 = 7.40\%

FORMULA

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