ETHICAL COMPLIANCE REPORT

SANGAM (INDIA)

Sector:

Consumer Cyclical

Industry:

Textile Manufacturing

Overall Compliance

non-compliant

PRIMARY BUSINESS FILTER
Textiles
compliant
REVENUE RATIO FILTER
0.3%
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DEBT RATIO FILTER
39%
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LIQUIDITY RATIO FILTER
1%
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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.

0.3%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{80500000.00}{26408400000.00} \times 100 = 0.30\%

FORMULA

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

Segment	Compliance	Value
Other Operating Revenue	compliant	₹77.75
Interest Income	non-compliant	₹5.07
Investment Gain	questionable	₹2.98
Other Income	compliant	₹4.74
Textile Products	compliant	₹2,457.71
Sale of Services	compliant	₹92.59

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.

39%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{10650200000.00}{27289300000.00} \times 100 = 39.00\%

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{282700000.00}{27289300000.00} \times 100 = 1.00\%

FORMULA

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