ETHICAL COMPLIANCE REPORT

HBL POWER SYSTEMS.

Sector:

Industrials

Industry:

Electrical Equipment & Parts

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Batteries Solutions
compliant
REVENUE RATIO FILTER
0.3%
View Calculations
DEBT RATIO FILTER
3.6%
View Calculations
LIQUIDITY RATIO FILTER
14.2%
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.

0.3%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{63368000.00}{22512630000.00} \times 100 = 0.30\%

FORMULA

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

Segment	Compliance	Value
Sale of Products - Batteries and Power Solutions	compliant	₹1,871.17
Sale of Traded Goods - Batteries and Power Solutions	compliant	₹0.21
Interest Income	non-compliant	₹6.34
Sale of Services	compliant	₹350.07
Other Operating Revenue - Sale of Scrap	compliant	₹11.90
Other Income	compliant	₹11.57

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.

3.6%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{593236000.00}{16540960000.00} \times 100 = 3.60\%

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.

14.2%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{2349481000.00}{16540960000.00} \times 100 = 14.20\%

FORMULA

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