ETHICAL COMPLIANCE REPORT

SKF INDIA

Sector:

Industrials

Industry:

Tools & Accessories

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.

1.6%

Non Compliant
Questionable
Compliant

CALCULATION

Revenue Ratio:751100000.0046641400000.00×100=1.60%\textbf{Revenue Ratio:} \\[12pt] \dfrac{751100000.00}{46641400000.00} \times 100 = 1.60\%

FORMULA

Revenue Ratio:Unethical SegmentsTotal Revenue×100  ≤  3%\textbf{Revenue Ratio:} \\[12pt] \dfrac{\text{Unethical Segments}}{\text{Total Revenue}} \times 100 \; \leq \; 3\%
SegmentComplianceValue
components of Lubrication Systems
compliant
compliant		₹4,381.04
Sale of Services
compliant
compliant		₹106.69
Other Operating Revenues
compliant
compliant		₹82.40
interest Income
non-compliant
non-compliant		₹75.11
other income
compliant
compliant		₹18.90

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.

0%

CALCULATION

Debt Ratio:0.0036514000000.00×100=0.00%\textbf{Debt Ratio:} \\[12pt] \dfrac{0.00}{36514000000.00} \times 100 = 0.00\%

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.

33.5%

CALCULATION

Liquidity Ratio:12221100000.0036514000000.00×100=33.50%\textbf{Liquidity Ratio:} \\[12pt] \dfrac{12221100000.00}{36514000000.00} \times 100 = 33.50\%

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\%