ETHICAL COMPLIANCE REPORT

S. P. APPARELS

Sector:

Consumer Cyclical

Industry:

Apparel Manufacturing

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Apparel & Accessories
compliant
REVENUE RATIO FILTER
1.4%
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DEBT RATIO FILTER
15.6%
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LIQUIDITY RATIO FILTER
6.9%
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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.

1.4%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{149060000.00}{11036720000.00} \times 100 = 1.40\%

FORMULA

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

Segment	Compliance	Value
Textile Products	compliant	₹1,026.50
Sales of Service	compliant	₹4.96
Other Operating Revenue	compliant	₹55.90
Interest Income	non-compliant	₹4.19
Investment Gain	questionable	₹10.72
Other Income	compliant	₹1.41

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.

15.6%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{1778450000.00}{11416410000.00} \times 100 = 15.60\%

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.

6.9%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{792530000.00}{11416410000.00} \times 100 = 6.90\%

FORMULA

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