ETHICAL COMPLIANCE REPORT

HONDA I POWER PRODUCT

Sector:

Industrials

Industry:

Specialty Industrial Machinery

Overall Compliance

questionable

PRIMARY BUSINESS FILTER
Auto Parts
compliant
REVENUE RATIO FILTER
3.2%
View Calculations
DEBT RATIO FILTER
0%
View Calculations
LIQUIDITY RATIO FILTER
54.5%
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.

3.2%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{329000000.00}{10231000000.00} \times 100 = 3.20\%

FORMULA

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

Segment	Compliance	Value
portable gensets, water pumps, general purpose engines,	compliant	₹936.00
Spares and components	compliant	₹32.11
Other Operating Revenue	compliant	₹13.57
Interest income	non-compliant	₹32.90
Other Income	compliant	₹8.52

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{4700000.00}{9919300000.00} \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.

54.5%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{5408000000.00}{9919300000.00} \times 100 = 54.50\%

FORMULA

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