ETHICAL COMPLIANCE REPORT

ABB INDIA

Sector:

Industrials

Industry:

Specialty Industrial Machinery

Overall Compliance

compliant

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.

1.7%

Non Compliant
Questionable
Compliant

CALCULATION

Revenue Ratio:1794700000.0087470000000.00×100=1.70%\textbf{Revenue Ratio:} \\[12pt] \dfrac{1794700000.00}{87470000000.00} \times 100 = 1.70\%

FORMULA

Revenue Ratio:Unethical SegmentsTotal Revenue×100  ≤  3%\textbf{Revenue Ratio:} \\[12pt] \dfrac{\text{Unethical Segments}}{\text{Total Revenue}} \times 100 \; \leq \; 3\%
SegmentComplianceValue
Revenue From Operations
compliant
compliant		₹8,567.53
Other Income(interest)
non-compliant
non-compliant		₹179.47

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.

0.4%

CALCULATION

Debt Ratio:489800000.00110011900000.00×100=0.40%\textbf{Debt Ratio:} \\[12pt] \dfrac{489800000.00}{110011900000.00} \times 100 = 0.40\%

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.

45.4%

CALCULATION

Liquidity Ratio:49894200000.00110011900000.00×100=45.40%\textbf{Liquidity Ratio:} \\[12pt] \dfrac{49894200000.00}{110011900000.00} \times 100 = 45.40\%

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\%