ETHICAL COMPLIANCE REPORT

HINDUSTAN OIL EXPLORATION

Sector:

Energy

Industry:

Oil & Gas E&P

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Exploration & Production
compliant
REVENUE RATIO FILTER
1.5%
View Calculations
DEBT RATIO FILTER
8.9%
View Calculations
LIQUIDITY RATIO FILTER
4.4%
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.

1.5%

Non Compliant

Questionable

Compliant

CALCULATION

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

FORMULA

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

Segment	Compliance	Value
Investment Gain	questionable	₹2.72
Other Income	compliant	₹7.21
Sale of Crude Oil / Condensate	compliant	₹232.40
Interest Income	non-compliant	₹8.75
Vessel Hire Charges	compliant	₹171.98
Sale of Natural Gas	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

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

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.

4.4%

CALCULATION

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

FORMULA

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