ETHICAL COMPLIANCE REPORT

HINDUSTAN AERONAUTICS

Sector:

Industrials

Industry:

Aerospace & Defense

Overall Compliance

non-compliant

PRIMARY BUSINESS FILTER
Aeronautics and Defense
compliant
REVENUE RATIO FILTER
5.1%
View Calculations
DEBT RATIO FILTER
0%
View Calculations
LIQUIDITY RATIO FILTER
33.8%
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.

5.1%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{16344300000.00}{322776800000.00} \times 100 = 5.10\%

FORMULA

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

Segment	Compliance	Value
Repair & Overhaul and Other Services	compliant	₹14,282.49
Other Non-Operating Income	compliant	₹262.17
Interest Income	non-compliant	₹1,634.43
Other Income	compliant	₹2,219.18
Finished Goods & spare parts	compliant	₹13,879.41

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.

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{0.00}{780951800000.00} \times 100 = 0.00\%

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.

33.8%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{264316100000.00}{780951800000.00} \times 100 = 33.80\%

FORMULA

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