ETHICAL COMPLIANCE REPORT

AKZO NOBEL INDIA

Sector:

Basic Materials

Industry:

Specialty Chemicals

Overall Compliance

questionable

PRIMARY BUSINESS FILTER
Manufactures Paints
compliant
REVENUE RATIO FILTER
3.7%
View Calculations
DEBT RATIO FILTER
0%
View Calculations
LIQUIDITY RATIO FILTER
41.1%
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.

3.7%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{2240000000.00}{60971800000.00} \times 100 = 3.70\%

FORMULA

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

Segment	Compliance	Value
Other Operating Revenue	compliant	₹24.27
Interest Income	non-compliant	₹224.00
Sale of Services	compliant	₹67.36
Paints	compliant	₹5,779.83
Sale of scrap	compliant	₹1.40
Export Incentive	compliant	₹0.32

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}{51934900000.00} \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.

41.1%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{21344900000.00}{51934900000.00} \times 100 = 41.10\%

FORMULA

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