ETHICAL COMPLIANCE REPORT

HFCL

HFCL Logo

Sector:

Technology

Industry:

Communication Equipment

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.

1.3%

Non Compliant
Questionable
Compliant

CALCULATION

Revenue Ratio:581000000.0045656400000.00×100=1.30%\textbf{Revenue Ratio:} \\[12pt] \dfrac{581000000.00}{45656400000.00} \times 100 = 1.30\%

FORMULA

Revenue Ratio:Unethical SegmentsTotal Revenue×100  ≤  3%\textbf{Revenue Ratio:} \\[12pt] \dfrac{\text{Unethical Segments}}{\text{Total Revenue}} \times 100 \; \leq \; 3\%
SegmentComplianceValue
Telecom Equipments
compliant
compliant		₹4,457.62
Other Operating Income
compliant
compliant		₹7.43
Interest Income
non-compliant
non-compliant		₹58.10
Other Income
compliant
compliant		₹42.49

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.

15.1%

CALCULATION

Debt Ratio:9772600000.0064868300000.00×100=15.10%\textbf{Debt Ratio:} \\[12pt] \dfrac{9772600000.00}{64868300000.00} \times 100 = 15.10\%

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.

5.2%

CALCULATION

Liquidity Ratio:3363500000.0064868300000.00×100=5.20%\textbf{Liquidity Ratio:} \\[12pt] \dfrac{3363500000.00}{64868300000.00} \times 100 = 5.20\%

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\%