ETHICAL COMPLIANCE REPORT

HINDUSTAN ZINC

Sector:

Basic Materials

Industry:

Other Industrial Metals & Mining

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Zinc Manufacturer
compliant
REVENUE RATIO FILTER
2.9%
View Calculations
DEBT RATIO FILTER
24.9%
View Calculations
LIQUIDITY RATIO FILTER
0.5%
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.

2.9%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{8630000000.00}{300060000000.00} \times 100 = 2.90\%

FORMULA

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

Segment	Compliance	Value
Income From Wind Energy	compliant	₹156.00
Sale of Scrap and Residuals	compliant	₹482.00
Export Incentives	compliant	₹198.00
foreign currency transaction & government grant	compliant	₹211.00
Interest Income & dividend	non-compliant	₹863.00
Zinc, Lead, Silver	compliant	₹27,926.00
other income	compliant	₹170.00

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.

24.9%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{84560000000.00}{338950000000.00} \times 100 = 24.90\%

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.

0.5%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{1750000000.00}{338950000000.00} \times 100 = 0.50\%

FORMULA

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