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.

2.2%

Non Compliant
Questionable
Compliant

CALCULATION

Revenue Ratio:8437300000.00386431600000.00×100=2.20%\textbf{Revenue Ratio:} \\[12pt] \dfrac{8437300000.00}{386431600000.00} \times 100 = 2.20\%

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
compliant
compliant		₹31,326.34
Spare Parts
compliant
compliant		₹5,829.83
Dealers Support Services
compliant
compliant		₹75.04
Goodlife Program for Customers
compliant
compliant		₹42.43
Services - Others
compliant
compliant		₹325.39
Duty Drawback and Other Incentives
compliant
compliant		₹36.86
Incentive From State Governments
compliant
compliant		₹44.15
Miscellaneous Income
compliant
compliant		₹108.58
Other Income
compliant
compliant		₹10.81
interest & dividend
non-compliant
non-compliant		₹843.73

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.

1.4%

CALCULATION

Debt Ratio:3634300000.00261527900000.00×100=1.40%\textbf{Debt Ratio:} \\[12pt] \dfrac{3634300000.00}{261527900000.00} \times 100 = 1.40\%

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.

2.7%

CALCULATION

Liquidity Ratio:6964700000.00261527900000.00×100=2.70%\textbf{Liquidity Ratio:} \\[12pt] \dfrac{6964700000.00}{261527900000.00} \times 100 = 2.70\%

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\%