ETHICAL COMPLIANCE REPORT

INDIAN HUME PIPE CO..

Sector:

Industrials

Industry:

Engineering & Construction

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Pipe Manufacturing
compliant
REVENUE RATIO FILTER
0.3%
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DEBT RATIO FILTER
24%
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LIQUIDITY RATIO FILTER
2%
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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.

0.3%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{41355000.00}{13972440000.00} \times 100 = 0.30\%

FORMULA

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

Segment	Compliance	Value
Other Operating Revenue	compliant	₹5.76
Interest Income	non-compliant	₹4.07
pipes	compliant	₹162.70
Construction revenue	compliant	₹1,109.48
Operations and maintenance income	compliant	₹64.92
Revenue from land development	compliant	₹45.77
Dividend Income *	questionable	₹0.07
Other Income	compliant	₹4.48

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%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{4996729000.00}{20809789000.00} \times 100 = 24.00\%

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.

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{423681000.00}{20809789000.00} \times 100 = 2.00\%

FORMULA

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