ETHICAL COMPLIANCE REPORT

ESCORTS KUBOTA

Sector:

Industrials

Industry:

Farm & Heavy Construction Machinery

Overall Compliance

questionable

PRIMARY BUSINESS FILTER
engineering conglomerates
compliant
REVENUE RATIO FILTER
4%
View Calculations
DEBT RATIO FILTER
0%
View Calculations
LIQUIDITY RATIO FILTER
10.5%
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.

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{3728800000.00}{92482100000.00} \times 100 = 4.00\%

FORMULA

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

Segment	Compliance	Value
Agri machinery products	compliant	₹6,180.90
Construction equipments	compliant	₹1,709.65
Sale of Services	compliant	₹950.41
Unallocated	compliant	₹8.66
Interest Income	non-compliant	₹372.88
other income	compliant	₹25.71

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{42000000.00}{112669100000.00} \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.

10.5%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{11790000000.00}{112669100000.00} \times 100 = 10.50\%

FORMULA

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