ETHICAL COMPLIANCE REPORT

JTEKT INDIA

Sector:

Consumer Cyclical

Industry:

Auto Parts

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Auto Parts
compliant
REVENUE RATIO FILTER
0.2%
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DEBT RATIO FILTER
8.6%
View Calculations
LIQUIDITY RATIO FILTER
5.9%
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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.

0.2%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{44293000.00}{22569796000.00} \times 100 = 0.20\%

FORMULA

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

Segment	Compliance	Value
Steering Product	compliant	₹2,129.08
Drive Line Product	compliant	₹98.02
Sale of services	compliant	₹0.97
Scrap Sale	compliant	₹15.44
Export Incentives	compliant	₹1.98
Interest income	non-compliant	₹4.43
Other Income	compliant	₹7.06

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.

8.6%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{1095936000.00}{12747638000.00} \times 100 = 8.60\%

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.

5.9%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{753645000.00}{12747638000.00} \times 100 = 5.90\%

FORMULA

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