ETHICAL COMPLIANCE REPORT

PRATAAP SNACKS

Sector:

Consumer Defensive

Industry:

Packaged Foods

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Packaged Foods
compliant
REVENUE RATIO FILTER
0.5%
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DEBT RATIO FILTER
8%
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LIQUIDITY RATIO FILTER
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.

0.5%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{77606000.00}{16606928000.00} \times 100 = 0.50\%

FORMULA

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

Segment	Compliance	Value
Extruded Namkeen	compliant	₹944.80
Traditional Namkeen	compliant	₹267.04
Potato Chips	compliant	₹375.88
Sweet Snacks	compliant	₹43.68
Others	compliant	₹10.32
Sale of Starch	compliant	₹0.80
Scrap Sales	compliant	₹4.43
Government Grant	compliant	₹4.31
Other Operating Income	compliant	₹1.67
Other Income	non-compliant	₹7.76

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.

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{810941000.00}{10115340000.00} \times 100 = 8.00\%

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{305999000.00}{10115340000.00} \times 100 = 3.00\%

FORMULA

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