ETHICAL COMPLIANCE REPORT

VMART RETAIL

Sector:

Consumer Cyclical

Industry:

Department Stores

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Retail Chain
compliant
REVENUE RATIO FILTER
0.1%
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DEBT RATIO FILTER
3.9%
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LIQUIDITY RATIO FILTER
1%
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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.

0.1%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{33700000.00}{28065500000.00} \times 100 = 0.10\%

FORMULA

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

Segment	Compliance	Value
Sale of Traded Goods	compliant	₹2,711.31
Sales of Service	compliant	₹69.53
Other Operating Revenue	compliant	₹4.76
Interest Income	non-compliant	₹3.25
Net Gain on Sale of Investments	questionable	₹0.12
Other Income	compliant	₹17.58

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.

3.9%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{1100000000.00}{28453300000.00} \times 100 = 3.90\%

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.

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{272300000.00}{28453300000.00} \times 100 = 1.00\%

FORMULA

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