ETHICAL COMPLIANCE REPORT

VST INDUSTRIES

Sector:

Consumer Defensive

Industry:

Tobacco

Overall Compliance

non-compliant

PRIMARY BUSINESS FILTER
Tobacco and Tobacco Products
non-compliant
REVENUE RATIO FILTER
97.8%
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DEBT RATIO FILTER
0%
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LIQUIDITY RATIO FILTER
2%
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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.

97.8%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{18749412000.00}{19170998000.00} \times 100 = 97.80\%

FORMULA

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

Segment	Compliance	Value
Cigarettes	non-compliant	₹1,391.86
Unmanufactured Tobacco	non-compliant	₹442.37
Other Operating Revenue	compliant	₹3.27
Interest income	non-compliant	₹12.97
Net Gain on Sale of Investments	questionable	₹27.74
Other Income	compliant	₹38.89

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.

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{0.00}{17200900000.00} \times 100 = 0.00\%

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.

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{351554000.00}{17200900000.00} \times 100 = 2.00\%

FORMULA

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