ETHICAL COMPLIANCE REPORT

HEIDELBERGCEMENT (I)

Sector:

Basic Materials

Industry:

Building Materials

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Cement
compliant
REVENUE RATIO FILTER
1.7%
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DEBT RATIO FILTER
4.7%
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LIQUIDITY RATIO FILTER
20.8%
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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.

1.7%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{400100000.00}{24203000000.00} \times 100 = 1.70\%

FORMULA

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

Segment	Compliance	Value
Cement	compliant	₹2,247.37
Clinker	compliant	₹102.31
Sale of Services	compliant	₹8.23
Other Operating Revenue	compliant	₹7.87
Interest Income	non-compliant	₹40.01
Other Income	compliant	₹14.51

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.

4.7%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{1250800000.00}{26611200000.00} \times 100 = 4.70\%

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.

20.8%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{5547600000.00}{26611200000.00} \times 100 = 20.80\%

FORMULA

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