ETHICAL COMPLIANCE REPORT

RSWM

Sector:

Consumer Cyclical

Industry:

Textile Manufacturing

Overall Compliance

non-compliant

PRIMARY BUSINESS FILTER
Textile
compliant
REVENUE RATIO FILTER
0.3%
View Calculations
DEBT RATIO FILTER
51%
View Calculations
LIQUIDITY RATIO FILTER
0.2%
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.

0.3%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{116871000.00}{40942653000.00} \times 100 = 0.30\%

FORMULA

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

Segment	Compliance	Value
Textile Products	compliant	₹3,930.95
Sale of services	compliant	₹34.72
Sale of Waste	compliant	₹59.11
Export Benefits/incentives	compliant	₹33.10
Interest income	non-compliant	₹10.30
Dividend income	questionable	₹1.39
Other Income	compliant	₹24.70

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.

51%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{18844025000.00}{36937382000.00} \times 100 = 51.00\%

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.

0.2%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{78947000.00}{36937382000.00} \times 100 = 0.20\%

FORMULA

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