ETHICAL COMPLIANCE REPORT

HINDUSTAN OIL EXPLORATION

Sector:

Energy

Industry:

Oil & Gas E&P

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.

1.5%

Non Compliant
Questionable
Compliant

CALCULATION

Revenue Ratio:114692000.007678127000.00×100=1.50%\textbf{Revenue Ratio:} \\[12pt] \dfrac{114692000.00}{7678127000.00} \times 100 = 1.50\%

FORMULA

Revenue Ratio:Unethical SegmentsTotal Revenue×100  ≤  3%\textbf{Revenue Ratio:} \\[12pt] \dfrac{\text{Unethical Segments}}{\text{Total Revenue}} \times 100 \; \leq \; 3\%
SegmentComplianceValue
Investment Gain
questionable
questionable		₹2.72
Other Income
compliant
compliant		₹7.21
Sale of Crude Oil / Condensate
compliant
compliant		₹232.40
Interest Income
non-compliant
non-compliant		₹8.75
Vessel Hire Charges
compliant
compliant		₹171.98
Sale of Natural Gas
compliant
compliant		₹344.76

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.

8.9%

CALCULATION

Debt Ratio:1740795000.0019514520000.00×100=8.90%\textbf{Debt Ratio:} \\[12pt] \dfrac{1740795000.00}{19514520000.00} \times 100 = 8.90\%

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.

4.4%

CALCULATION

Liquidity Ratio:856886000.0019514520000.00×100=4.40%\textbf{Liquidity Ratio:} \\[12pt] \dfrac{856886000.00}{19514520000.00} \times 100 = 4.40\%

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\%