ETHICAL COMPLIANCE REPORT

VARUN BEVERAGES

Sector:

Consumer Defensive

Industry:

Beverages - Non-Alcoholic

Overall Compliance

non-compliant

non-compliant

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.

35.8%

CALCULATION

Debt Ratio:54313100000.00151871830000.00×100=35.80%\textbf{Debt Ratio:} \\[12pt] \dfrac{54313100000.00}{151871830000.00} \times 100 = 35.80\%

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.

3%

CALCULATION

Liquidity Ratio:4598620000.00151871830000.00×100=3.00%\textbf{Liquidity Ratio:} \\[12pt] \dfrac{4598620000.00}{151871830000.00} \times 100 = 3.00\%

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\%

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.

0.2%

Non Compliant
Questionable
Compliant

CALCULATION

Revenue Ratio:388490000.00134294070000.00×100=0.20%\textbf{Revenue Ratio:} \\[12pt] \dfrac{388490000.00}{134294070000.00} \times 100 = 0.20\%

FORMULA

Revenue Ratio:Unethical SegmentsTotal Revenue×100  ≤  3%\textbf{Revenue Ratio:} \\[12pt] \dfrac{\text{Unethical Segments}}{\text{Total Revenue}} \times 100 \; \leq \; 3\%
SegmentComplianceValue
Revenue From Operations
compliant
compliant		₹13,390.56
Other Income(interest)
non-compliant
non-compliant		₹38.85