ETHICAL COMPLIANCE REPORT

SAPPHIRE FOODS INDIA

Sector:

Consumer Cyclical

Industry:

Restaurants

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Restaurants
compliant
REVENUE RATIO FILTER
0.9%
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DEBT RATIO FILTER
1%
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LIQUIDITY RATIO FILTER
5.9%
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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.

0.9%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{227290000.00}{26249410000.00} \times 100 = 0.90\%

FORMULA

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

Segment	Compliance	Value
Scrap Sales & Others	compliant	₹2.74
Other Income	compliant	₹7.93
Fair Value Gain on Financial Instruments at Fair Value Through Profit or Loss	questionable	₹3.20
Interest Income	non-compliant	₹19.53
Alliance Income	compliant	₹1.78
Restaurant Sales	compliant	₹2,587.96
Sale to Airport Dealers / Franchisees	compliant	₹1.80

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{276220000.00}{28400810000.00} \times 100 = 1.00\%

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.

5.9%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{1675750000.00}{28400810000.00} \times 100 = 5.90\%

FORMULA

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