ETHICAL COMPLIANCE REPORT

VARDHMAN TEXTILES

Sector:

Consumer Cyclical

Industry:

Textile Manufacturing

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Textiles
compliant
REVENUE RATIO FILTER
2.2%
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DEBT RATIO FILTER
15%
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LIQUIDITY RATIO FILTER
2.7%
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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.

2.2%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{2068700000.00}{99907600000.00} \times 100 = 2.20\%

FORMULA

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

Segment	Compliance	Value
Textile Products	compliant	₹9,312.41
Sale of Services	compliant	₹7.79
Other Operating Revenue	compliant	₹184.48
Others	compliant	₹160.14
Interest Income	non-compliant	₹53.69
Investment Gain	questionable	₹153.18
Other Income	compliant	₹119.07

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%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{17919300000.00}{119807900000.00} \times 100 = 15.00\%

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.

2.7%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{3293700000.00}{119807900000.00} \times 100 = 2.70\%

FORMULA

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