ETHICAL COMPLIANCE REPORT

3M INDIA

Sector:

Industrials

Industry:

Conglomerates

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Multinational Conglomerate
compliant
REVENUE RATIO FILTER
1.6%
View Calculations
DEBT RATIO FILTER
0%
View Calculations
LIQUIDITY RATIO FILTER
41.8%
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.

1.6%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{666997000.00}{42676533000.00} \times 100 = 1.60\%

FORMULA

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

Segment	Compliance	Value
Safety & Industrial	compliant	₹1,333.29
Transportation & Electronics	compliant	₹1,649.41
Health Care	compliant	₹760.93
Consumer	compliant	₹427.96
Others	compliant	₹17.78
interest income	non-compliant	₹66.70
other income	compliant	₹11.59

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}{32482236000.00} \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.

41.8%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{13578434000.00}{32482236000.00} \times 100 = 41.80\%

FORMULA

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