ETHICAL COMPLIANCE REPORT

HERO MOTOCORP

HERO MOTOCORP Logo

Sector:

Consumer Cyclical

Industry:

Auto Manufacturers

Overall Compliance

compliant

compliant

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.

0.2%

Non Compliant
Questionable
Compliant

CALCULATION

Revenue Ratio:710000000.00409230000000.00×100=0.20%\textbf{Revenue Ratio:} \\[12pt] \dfrac{710000000.00}{409230000000.00} \times 100 = 0.20\%

FORMULA

Revenue Ratio:Unethical SegmentsTotal Revenue×100  ≤  3%\textbf{Revenue Ratio:} \\[12pt] \dfrac{\text{Unethical Segments}}{\text{Total Revenue}} \times 100 \; \leq \; 3\%
SegmentComplianceValue
Two Wheelers
non-compliant
non-compliant		₹71.00
Spare Parts
compliant
compliant		₹40,852.00

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.

1.6%

CALCULATION

Debt Ratio:4570000000.00283900000000.00×100=1.60%\textbf{Debt Ratio:} \\[12pt] \dfrac{4570000000.00}{283900000000.00} \times 100 = 1.60\%

FORMULA

Debt Ratio:Interest Bearing DebtTotal Assets×100  ≤  30%\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.

2%

CALCULATION

Liquidity Ratio:5740000000.00283900000000.00×100=2.00%\textbf{Liquidity Ratio:} \\[12pt] \dfrac{5740000000.00}{283900000000.00} \times 100 = 2.00\%

FORMULA

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