ETHICAL COMPLIANCE REPORT

HINDUSTAN UNILEVER.

Sector:

Consumer Defensive

Industry:

Household & Personal Products

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Fmcg
compliant
REVENUE RATIO FILTER
0.9%
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DEBT RATIO FILTER
0%
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LIQUIDITY RATIO FILTER
9.6%
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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.

0.9%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{5460000000.00}{627070000000.00} \times 100 = 0.90\%

FORMULA

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

Segment	Compliance	Value
Home Care	compliant	₹21,882.00
Beauty & Personal Care	compliant	₹22,448.00
Foods & Refreshment	compliant	₹15,291.00
Others	compliant	₹2,275.00
interest	non-compliant	₹546.00
other income	compliant	₹265.00

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{130000000.00}{784990000000.00} \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.

9.6%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{75590000000.00}{784990000000.00} \times 100 = 9.60\%

FORMULA

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