ETHICAL COMPLIANCE REPORT

ADANI ENTERPRISES

Sector:

Energy

Industry:

Thermal Coal

Overall Compliance

non-compliant

non-compliant

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.

1.1%

Non Compliant
Questionable
Compliant

CALCULATION

Revenue Ratio:10474000000.00982815000000.00×100=1.10%\textbf{Revenue Ratio:} \\[12pt] \dfrac{10474000000.00}{982815000000.00} \times 100 = 1.10\%

FORMULA

Revenue Ratio:Unethical SegmentsTotal Revenue×100  ≤  3%\textbf{Revenue Ratio:} \\[12pt] \dfrac{\text{Unethical Segments}}{\text{Total Revenue}} \times 100 \; \leq \; 3\%
SegmentComplianceValue
interest income
non-compliant
non-compliant		₹1,047.40
other income
compliant
compliant		₹813.13
Other Operating Revenue
compliant
compliant		₹104.82
Sale of Goods
compliant
compliant		₹75,259.91
Sale of Services
compliant
compliant		₹21,056.24

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.

31.2%

CALCULATION

Debt Ratio:501238800000.001607318500000.00×100=31.20%\textbf{Debt Ratio:} \\[12pt] \dfrac{501238800000.00}{1607318500000.00} \times 100 = 31.20\%

FORMULA

Debt Ratio:Interest Bearing DebtTotal Assets×100  ≤  30%\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.

4.4%

CALCULATION

Liquidity Ratio:70684800000.001607318500000.00×100=4.40%\textbf{Liquidity Ratio:} \\[12pt] \dfrac{70684800000.00}{1607318500000.00} \times 100 = 4.40\%

FORMULA

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