ETHICAL COMPLIANCE REPORT

PARAG MILK FOODS.

PARAG MILK FOODS. Logo

Sector:

Consumer Defensive

Industry:

Packaged Foods

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.

0.2%

Non Compliant
Questionable
Compliant

CALCULATION

Revenue Ratio:49750000.0031639090000.00×100=0.20%\textbf{Revenue Ratio:} \\[12pt] \dfrac{49750000.00}{31639090000.00} \times 100 = 0.20\%

FORMULA

Revenue Ratio:Unethical SegmentsTotal Revenue×100  ≤  3%\textbf{Revenue Ratio:} \\[12pt] \dfrac{\text{Unethical Segments}}{\text{Total Revenue}} \times 100 \; \leq \; 3\%
SegmentComplianceValue
milk & Consumer products
compliant
compliant		₹3,077.67
Other Operating Revenue
compliant
compliant		₹61.03
Interest income
non-compliant
non-compliant		₹4.21
Net Gain on Sale of Investments
questionable
questionable		₹0.77
Other Income
compliant
compliant		₹20.23

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.

32.4%

CALCULATION

Debt Ratio:6118390000.0018908860000.00×100=32.40%\textbf{Debt Ratio:} \\[12pt] \dfrac{6118390000.00}{18908860000.00} \times 100 = 32.40\%

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.

1.5%

CALCULATION

Liquidity Ratio:275740000.0018908860000.00×100=1.50%\textbf{Liquidity Ratio:} \\[12pt] \dfrac{275740000.00}{18908860000.00} \times 100 = 1.50\%

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\%