ETHICAL COMPLIANCE REPORT

JOHNSON CONTROLS HITACHI

Sector:

Consumer Cyclical

Industry:

Furnishings, Fixtures & Appliances

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Consumer Electronics
compliant
REVENUE RATIO FILTER
0%
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DEBT RATIO FILTER
0%
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LIQUIDITY RATIO FILTER
4.3%
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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{6800000.00}{19288300000.00} \times 100 = 0.00\%

FORMULA

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

Segment	Compliance	Value
Consumer Electronics	compliant	₹1,758.23
Other Operating Revenue	compliant	₹19.77
Interest Income	non-compliant	₹0.68
Sale of Services	compliant	₹140.70
Other Income	compliant	₹9.45

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}{16572200000.00} \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.

4.3%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{719300000.00}{16572200000.00} \times 100 = 4.30\%

FORMULA

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