ETHICAL COMPLIANCE REPORT

HINDUSTAN FOODS

Sector:

Consumer Defensive

Industry:

Packaged Foods

Overall Compliance

non-compliant

non-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.

0.1%

Non Compliant
Questionable
Compliant

CALCULATION

Revenue Ratio:23965000.0027618799000.00×100=0.10%\textbf{Revenue Ratio:} \\[12pt] \dfrac{23965000.00}{27618799000.00} \times 100 = 0.10\%

FORMULA

Revenue Ratio:Unethical SegmentsTotal Revenue×100  ≤  3%\textbf{Revenue Ratio:} \\[12pt] \dfrac{\text{Unethical Segments}}{\text{Total Revenue}} \times 100 \; \leq \; 3\%
SegmentComplianceValue
Sale of Products
compliant
compliant		₹2,710.76
Sale of Services
compliant
compliant		₹34.45
Interest Income
non-compliant
non-compliant		₹2.40
Other Operating Revenue
compliant
compliant		₹9.51
Other Income
compliant
compliant		₹4.77

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.

35.6%

CALCULATION

Debt Ratio:6859264000.0019252469000.00×100=35.60%\textbf{Debt Ratio:} \\[12pt] \dfrac{6859264000.00}{19252469000.00} \times 100 = 35.60\%

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.

2.6%

CALCULATION

Liquidity Ratio:492891000.0019252469000.00×100=2.60%\textbf{Liquidity Ratio:} \\[12pt] \dfrac{492891000.00}{19252469000.00} \times 100 = 2.60\%

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\%