ETHICAL COMPLIANCE REPORT

HCL TECHNOLOGIES

Sector:

Technology

Industry:

Information Technology Services

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Tech Company
compliant
REVENUE RATIO FILTER
1.1%
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DEBT RATIO FILTER
0%
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LIQUIDITY RATIO FILTER
20.2%
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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.

1.1%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{12730000000.00}{1114080000000.00} \times 100 = 1.10\%

FORMULA

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

Segment	Compliance	Value
R&D	compliant	₹17,581.00
It and Business Services	compliant	₹81,148.00
other income	compliant	₹222.00
interest income	non-compliant	₹1,273.00
HCL software	compliant	₹11,184.00

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.

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{62600000.00}{997770000000.00} \times 100 = 0.00\%

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.

20.2%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{201500000000.00}{997770000000.00} \times 100 = 20.20\%

FORMULA

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