ETHICAL COMPLIANCE REPORT

VODAFONE IDEA

Sector:

Communication Services

Industry:

Telecom Services

Overall Compliance

non-compliant

PRIMARY BUSINESS FILTER
Telecommunication Company
compliant
REVENUE RATIO FILTER
0.7%
View Calculations
DEBT RATIO FILTER
112.2%
View Calculations
LIQUIDITY RATIO FILTER
0.3%
View Calculations

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.

0.7%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{3113000000.00}{424885000000.00} \times 100 = 0.70\%

FORMULA

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

Segment	Compliance	Value
Revenue From Telecommunication Services	compliant	₹42,133.90
Liabilities No Longer Required Written Back	compliant	₹17.50
Miscellaneous Receipts	compliant	₹17.10
Sale of Trading Goods	compliant	₹8.70
Gain on Mutual Funds	questionable	₹29.00
Interest Income	non-compliant	₹247.10
Others	non-compliant	₹35.20

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.

112.2%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{2076298000000.00}{1849977000000.00} \times 100 = 112.20\%

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.

0.3%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{5362000000.00}{1849977000000.00} \times 100 = 0.30\%

FORMULA

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