ETHICAL COMPLIANCE REPORT

VST TILLERS TRACTORS

Sector:

Industrials

Industry:

Farm & Heavy Construction Machinery

Overall Compliance

non-compliant

PRIMARY BUSINESS FILTER
Power Tillers
compliant
REVENUE RATIO FILTER
5.3%
View Calculations
DEBT RATIO FILTER
0%
View Calculations
LIQUIDITY RATIO FILTER
4%
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.

5.3%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{541853000.00}{10286307000.00} \times 100 = 5.30\%

FORMULA

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

Segment	Compliance	Value
Power Tillers	compliant	₹955.81
Sale of Services	compliant	₹7.30
Other Operating Revenue	compliant	₹4.93
Interest Income	non-compliant	₹2.18
Investment Gain	questionable	₹52.00
Other Income	compliant	₹6.40

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}{11668447000.00} \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{467335000.00}{11668447000.00} \times 100 = 4.00\%

FORMULA

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