ETHICAL COMPLIANCE REPORT

HINDALCO INDUSTRIES

Sector:

Basic Materials

Industry:

Aluminum

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Aluminium and Copper Manufacturer
compliant
REVENUE RATIO FILTER
0.5%
View Calculations
DEBT RATIO FILTER
23.5%
View Calculations
LIQUIDITY RATIO FILTER
6.2%
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.

0.5%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{10950000000.00}{2175670000000.00} \times 100 = 0.50\%

FORMULA

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

Segment	Compliance	Value
Dividend Income	questionable	₹309.00
interest income	non-compliant	₹786.00
tax benefits & scrap sales	compliant	₹1,155.00
Others	compliant	₹510.00
Sales of Copper products and precious metals	compliant	₹2,11,541.00
sale of Di ammonium phosphate	compliant	₹1,889.00
freight and insurance	compliant	₹1,377.00

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.

23.5%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{545010000000.00}{2319070000000.00} \times 100 = 23.50\%

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.

6.2%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{144370000000.00}{2319070000000.00} \times 100 = 6.20\%

FORMULA

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