ETHICAL COMPLIANCE REPORT

RADICO KHAITAN

Sector:

Consumer Defensive

Industry:

Beverages - Wineries & Distilleries

Overall Compliance

non-compliant

PRIMARY BUSINESS FILTER
Liquor Company
non-compliant
REVENUE RATIO FILTER
100%
View Calculations
DEBT RATIO FILTER
18%
View Calculations
LIQUIDITY RATIO FILTER
2.5%
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.

100%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{154909787000.00}{154927494000.00} \times 100 = 100.00\%

FORMULA

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

Segment	Compliance	Value
Alcohol and other alcoholic products	non-compliant	₹15,376.73
Other Income	compliant	₹1.77
interest & other	non-compliant	₹7.10
Scrap sales & Cattle feed	non-compliant	₹103.54
Jaivik Khad	non-compliant	₹3.62

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.

18%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{7370905000.00}{40949834000.00} \times 100 = 18.00\%

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.

2.5%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{1006187000.00}{40949834000.00} \times 100 = 2.50\%

FORMULA

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