ETHICAL COMPLIANCE REPORT

CUMMINS 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.

1.8%

Non Compliant
Questionable
Compliant

CALCULATION

Revenue Ratio:1728800000.0093260700000.00×100=1.80%\textbf{Revenue Ratio:} \\[12pt] \dfrac{1728800000.00}{93260700000.00} \times 100 = 1.80\%

FORMULA

Revenue Ratio:Unethical SegmentsTotal Revenue×100  ≤  3%\textbf{Revenue Ratio:} \\[12pt] \dfrac{\text{Unethical Segments}}{\text{Total Revenue}} \times 100 \; \leq \; 3\%
SegmentComplianceValue
Other operating revenue
compliant
compliant		₹140.21
interest & dividend
non-compliant
non-compliant		₹172.88
Others
compliant
compliant		₹152.99
Sale of Products & service
compliant
compliant		₹8,859.99

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.

1.1%

CALCULATION

Debt Ratio:1000000000.0089705100000.00×100=1.10%\textbf{Debt Ratio:} \\[12pt] \dfrac{1000000000.00}{89705100000.00} \times 100 = 1.10\%

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.

16.9%

CALCULATION

Liquidity Ratio:15127800000.0089705100000.00×100=16.90%\textbf{Liquidity Ratio:} \\[12pt] \dfrac{15127800000.00}{89705100000.00} \times 100 = 16.90\%

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\%