ETHICAL COMPLIANCE REPORT

VA TECH WABAG

Sector:

Industrials

Industry:

Engineering & Construction

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Water Treatment
compliant
REVENUE RATIO FILTER
1%
View Calculations
DEBT RATIO FILTER
3.3%
View Calculations
LIQUIDITY RATIO FILTER
17.9%
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{342000000.00}{33386000000.00} \times 100 = 1.00\%

FORMULA

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

Segment	Compliance	Value
Operation and maintenance contracts	compliant	₹598.90
Net Gain on Sale of Investments	questionable	₹8.00
Interest Income	non-compliant	₹26.20
Construction contracts	compliant	₹2,677.10
Other Operating Revenue	compliant	₹18.00
Other Income	compliant	₹10.40

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.

3.3%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{1758000000.00}{52673000000.00} \times 100 = 3.30\%

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.

17.9%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{9446000000.00}{52673000000.00} \times 100 = 17.90\%

FORMULA

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