ETHICAL COMPLIANCE REPORT

TCNS CLOTHING CO.

Sector:

Consumer Cyclical

Industry:

Apparel Manufacturing

Overall Compliance

non-compliant

non-compliant

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

Revenue Ratio:87270000.0012175980000.00×100=0.90%\textbf{Revenue Ratio:} \\[12pt] \dfrac{87270000.00}{12175980000.00} \times 100 = 0.90\%

FORMULA

Revenue Ratio:Unethical SegmentsTotal Revenue×100  ≤  3%\textbf{Revenue Ratio:} \\[12pt] \dfrac{\text{Unethical Segments}}{\text{Total Revenue}} \times 100 \; \leq \; 3\%
SegmentComplianceValue
Duty Drawback and Export Scheme License
compliant
compliant		₹0.54
Sale of Apparels
compliant
compliant		₹1,201.05
Net Gain on Write Back of Lease Liability
compliant
compliant		₹7.28
Other Income
non-compliant
non-compliant		₹8.73

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.

47.2%

CALCULATION

Debt Ratio:6070050000.0012846690000.00×100=47.20%\textbf{Debt Ratio:} \\[12pt] \dfrac{6070050000.00}{12846690000.00} \times 100 = 47.20\%

FORMULA

Debt Ratio:Interest Bearing DebtTotal Assets×100  ≤  30%\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

Liquidity Ratio:19330000.0012846690000.00×100=0.20%\textbf{Liquidity Ratio:} \\[12pt] \dfrac{19330000.00}{12846690000.00} \times 100 = 0.20\%

FORMULA

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