ETHICAL COMPLIANCE REPORT

VEDANT FASHIONS

Sector:

Consumer Cyclical

Industry:

Apparel Manufacturing

Overall Compliance

questionable

questionable

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.

4.4%

Non Compliant
Questionable
Compliant

CALCULATION

Revenue Ratio:634260000.0014372030000.00×100=4.40%\textbf{Revenue Ratio:} \\[12pt] \dfrac{634260000.00}{14372030000.00} \times 100 = 4.40\%

FORMULA

Revenue Ratio:Unethical SegmentsTotal Revenue×100  ≤  3%\textbf{Revenue Ratio:} \\[12pt] \dfrac{\text{Unethical Segments}}{\text{Total Revenue}} \times 100 \; \leq \; 3\%
SegmentComplianceValue
Other operating revenue
compliant
compliant		₹2.13
other income
compliant
compliant		₹6.25
interest & other
non-compliant
non-compliant		₹63.43
Apparels & Accessories
compliant
compliant		₹1,365.41

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.

17.7%

CALCULATION

Debt Ratio:4444190000.0025087560000.00×100=17.70%\textbf{Debt Ratio:} \\[12pt] \dfrac{4444190000.00}{25087560000.00} \times 100 = 17.70\%

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.

0.9%

CALCULATION

Liquidity Ratio:217100000.0025087560000.00×100=0.90%\textbf{Liquidity Ratio:} \\[12pt] \dfrac{217100000.00}{25087560000.00} \times 100 = 0.90\%

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\%