ETHICAL COMPLIANCE REPORT

PATANJALI FOODS

Sector:

Consumer Defensive

Industry:

Packaged Foods

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Food Products
compliant
REVENUE RATIO FILTER
0.6%
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DEBT RATIO FILTER
7.9%
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LIQUIDITY RATIO FILTER
6.3%
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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{2058458000.00}{319616250000.00} \times 100 = 0.60\%

FORMULA

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

Segment	Compliance	Value
Sale of Agro Food Products	compliant	₹31,603.69
Other Operating Revenue	compliant	₹101.63
Processing Charges Received	compliant	₹16.04
Other Income	compliant	₹34.42
Investment Gain	questionable	₹84.31
Other Income	non-compliant	₹121.53

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.

7.9%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{10475361000.00}{132620725000.00} \times 100 = 7.90\%

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.

6.3%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{8335805000.00}{132620725000.00} \times 100 = 6.30\%

FORMULA

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