ETHICAL COMPLIANCE REPORT

HPL ELECTRIC & POWER

Sector:

Industrials

Industry:

Electrical Equipment & Parts

Overall Compliance

non-compliant

PRIMARY BUSINESS FILTER
Electrical Equipment Manufacturer
compliant
REVENUE RATIO FILTER
0.3%
View Calculations
DEBT RATIO FILTER
33.2%
View Calculations
LIQUIDITY RATIO FILTER
3.1%
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.

0.3%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{42336000.00}{14650917000.00} \times 100 = 0.30\%

FORMULA

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

Segment	Compliance	Value
Interest Income	non-compliant	₹3.86
Other Income	questionable	₹0.37
Consumer, Industrial & Services	compliant	₹608.28
Metering, Systems & Services	compliant	₹852.58

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.

33.2%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{6230063000.00}{18741521000.00} \times 100 = 33.20\%

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.

3.1%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{589249000.00}{18741521000.00} \times 100 = 3.10\%

FORMULA

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