ETHICAL COMPLIANCE REPORT

TIMKEN 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.

1.1%

Non Compliant
Questionable
Compliant

CALCULATION

Revenue Ratio:312810000.0029503060000.00×100=1.10%\textbf{Revenue Ratio:} \\[12pt] \dfrac{312810000.00}{29503060000.00} \times 100 = 1.10\%

FORMULA

Revenue Ratio:Unethical SegmentsTotal Revenue×100  ≤  3%\textbf{Revenue Ratio:} \\[12pt] \dfrac{\text{Unethical Segments}}{\text{Total Revenue}} \times 100 \; \leq \; 3\%
SegmentComplianceValue
Industrial Products
compliant
compliant		₹2,686.88
Sale of Services
compliant
compliant		₹208.83
Export Incentives
compliant
compliant		₹13.83
interest & other
non-compliant
non-compliant		₹31.28
other income
compliant
compliant		₹9.48

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.

0.2%

CALCULATION

Debt Ratio:60430000.0029875000000.00×100=0.20%\textbf{Debt Ratio:} \\[12pt] \dfrac{60430000.00}{29875000000.00} \times 100 = 0.20\%

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.

11.1%

CALCULATION

Liquidity Ratio:3313610000.0029875000000.00×100=11.10%\textbf{Liquidity Ratio:} \\[12pt] \dfrac{3313610000.00}{29875000000.00} \times 100 = 11.10\%

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\%