ETHICAL COMPLIANCE REPORT

HEG

Sector:

Industrials

Industry:

Electrical Equipment & Parts

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Industrial Goods
compliant
REVENUE RATIO FILTER
2.1%
View Calculations
DEBT RATIO FILTER
10.9%
View Calculations
LIQUIDITY RATIO FILTER
7.2%
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.

2.1%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{537040000.00}{25365734000.00} \times 100 = 2.10\%

FORMULA

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

Segment	Compliance	Value
Graphite Electrodes	compliant	₹2,347.61
Power	compliant	₹32.21
Rec Sales	compliant	₹1.63
Export Incentives	compliant	₹13.46
Interest Income	non-compliant	₹43.20
investment gain	questionable	₹10.50
other income	compliant	₹87.97

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.

10.9%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{6193781000.00}{57013700000.00} \times 100 = 10.90\%

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.

7.2%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{4102354000.00}{57013700000.00} \times 100 = 7.20\%

FORMULA

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