ETHICAL COMPLIANCE REPORT

HINDUSTAN CONSTRUCTION CO

Sector:

Industrials

Industry:

Engineering & Construction

Overall Compliance

questionable

PRIMARY BUSINESS FILTER
Construction Services
compliant
DEBT RATIO FILTER
23.3%
View Calculations
LIQUIDITY RATIO FILTER
5.7%
View Calculations
REVENUE RATIO FILTER
4.4%
View Calculations

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.

23.3%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{21084700000.00}{90593800000.00} \times 100 = 23.30\%

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.

5.7%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{5131200000.00}{90593800000.00} \times 100 = 5.70\%

FORMULA

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

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.

4.4%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{3132600000.00}{71393700000.00} \times 100 = 4.40\%

FORMULA

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

Segment	Compliance	Value
Construction Revenue	compliant	₹6,623.91
Interest Income	non-compliant	₹37.39
Investment Gain	questionable	₹275.87
Other Operating Revenue	compliant	₹100.71
Other Income	compliant	₹101.49