ETHICAL COMPLIANCE REPORT

ESAB INDIA

Sector:

Industrials

Industry:

Tools & Accessories

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Welding and Cutting Products
compliant
REVENUE RATIO FILTER
0.1%
View Calculations
DEBT RATIO FILTER
0%
View Calculations
LIQUIDITY RATIO FILTER
15.9%
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.

0.1%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{18300000.00}{12498100000.00} \times 100 = 0.10\%

FORMULA

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

Segment	Compliance	Value
Scrap Sales & Export Benefits	compliant	₹4.54
Engineering, Support and Consulting Services	compliant	₹69.21
Management Service to Related Party	compliant	₹3.50
investment gain	questionable	₹0.62
Interest Income	non-compliant	₹1.21
Welding and Cutting Products	compliant	₹1,166.07
Other Income	compliant	₹4.66

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}{5509900000.00} \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.

15.9%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{877800000.00}{5509900000.00} \times 100 = 15.90\%

FORMULA

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