ETHICAL COMPLIANCE REPORT

NITIN SPINNERS

Sector:

Consumer Cyclical

Industry:

Textile Manufacturing

Overall Compliance

non-compliant

PRIMARY BUSINESS FILTER
Textile
compliant
REVENUE RATIO FILTER
0%
View Calculations
DEBT RATIO FILTER
49.3%
View Calculations
LIQUIDITY RATIO FILTER
0%
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.

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{12627000.00}{29078986000.00} \times 100 = 0.00\%

FORMULA

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

Segment	Compliance	Value
Sale of Yarn	compliant	₹1,995.52
Sale of Fabric	compliant	₹716.34
Sale of Other Products	compliant	₹169.21
Sale of Services	compliant	₹0.04
Foreign Exchange Fluctuation	compliant	₹24.54
Interest income	non-compliant	₹1.26
Other Income	compliant	₹0.99

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.

49.3%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{13391087000.00}{27166526000.00} \times 100 = 49.30\%

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.

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{4054000.00}{27166526000.00} \times 100 = 0.00\%

FORMULA

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