ETHICAL COMPLIANCE REPORT

ITC

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Sector:

Consumer Defensive

Industry:

Tobacco

Overall Compliance

non-compliant

non-compliant

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.

48.2%

Non Compliant
Questionable
Compliant

CALCULATION

Revenue Ratio:357914100000.00743026600000.00×100=48.20%\textbf{Revenue Ratio:} \\[12pt] \dfrac{357914100000.00}{743026600000.00} \times 100 = 48.20\%

FORMULA

Revenue Ratio:Unethical SegmentsTotal Revenue×100  ≤  3%\textbf{Revenue Ratio:} \\[12pt] \dfrac{\text{Unethical Segments}}{\text{Total Revenue}} \times 100 \; \leq \; 3\%
SegmentComplianceValue
Cigarettes
non-compliant
non-compliant		₹30,596.59
Unmanufactured Tobacco
non-compliant
non-compliant		₹2,612.06
Sale of Services
compliant
compliant		₹2,980.10
other products
compliant
compliant		₹33,916.54
Government grants
compliant
compliant		₹659.09
interest income
non-compliant
non-compliant		₹1,592.41
dividend
questionable
questionable		₹990.35
Other non-operating income
compliant
compliant		₹955.52

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.

0%

CALCULATION

Debt Ratio:32800000.008732760000000.00×100=0.00%\textbf{Debt Ratio:} \\[12pt] \dfrac{32800000.00}{8732760000000.00} \times 100 = 0.00\%

FORMULA

Debt Ratio:Interest Bearing DebtTotal Assets×100  ≤  30%\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.

0.7%

CALCULATION

Liquidity Ratio:62176900000.008732760000000.00×100=0.70%\textbf{Liquidity Ratio:} \\[12pt] \dfrac{62176900000.00}{8732760000000.00} \times 100 = 0.70\%

FORMULA

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