ETHICAL COMPLIANCE REPORT

WELSPUN LIVING

Sector:

Consumer Cyclical

Industry:

Textile Manufacturing

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Home textile
compliant
REVENUE RATIO FILTER
0.6%
View Calculations
DEBT RATIO FILTER
26.4%
View Calculations
LIQUIDITY RATIO FILTER
2.7%
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.

0.6%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{554800000.00}{98250700000.00} \times 100 = 0.60\%

FORMULA

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

Segment	Compliance	Value
Home textile	compliant	₹8,603.72
Power & Steam	compliant	₹16.87
Other Operating Income	compliant	₹1,058.65
Interest Income	non-compliant	₹47.89
Investment Gain	questionable	₹7.59
Other Income	compliant	₹90.35

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.

26.4%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{25205100000.00}{95500400000.00} \times 100 = 26.40\%

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.

2.7%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{2548100000.00}{95500400000.00} \times 100 = 2.70\%

FORMULA

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