ETHICAL COMPLIANCE REPORT

GODAWARI POW & ISP

Sector:

Basic Materials

Industry:

Steel

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Iron and Steel
compliant
REVENUE RATIO FILTER
1.5%
View Calculations
DEBT RATIO FILTER
0.9%
View Calculations
LIQUIDITY RATIO FILTER
15.7%
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.

1.5%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{841603000.00}{55532831000.00} \times 100 = 1.50\%

FORMULA

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

Segment	Compliance	Value
Manufacturing Goods and By-products	compliant	₹5,264.10
Electricity	compliant	₹27.52
Traded Goods	compliant	₹147.76
Others	compliant	₹8.90
Sale of Services	compliant	₹7.08
Interest Income	non-compliant	₹75.34
Other Income	compliant	₹13.77
Investment Gain	questionable	₹8.82

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.

0.9%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{516270000.00}{55452404000.00} \times 100 = 0.90\%

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.

15.7%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{8704423000.00}{55452404000.00} \times 100 = 15.70\%

FORMULA

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