ETHICAL COMPLIANCE REPORT

GVK POW. & INFRA.

GVK POW. & INFRA. Logo

Sector:

Utilities

Industry:

Utilities - Independent Power Producers

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.

6.5%

Non Compliant
Questionable
Compliant

CALCULATION

Revenue Ratio:749900000.0011551300000.00×100=6.50%\textbf{Revenue Ratio:} \\[12pt] \dfrac{749900000.00}{11551300000.00} \times 100 = 6.50\%

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		₹52.01
Other Income
questionable
questionable		₹22.98
Revenue From Operations
compliant
compliant		₹1,080.14

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.

88.3%

CALCULATION

Debt Ratio:45991400000.0052076400000.00×100=88.30%\textbf{Debt Ratio:} \\[12pt] \dfrac{45991400000.00}{52076400000.00} \times 100 = 88.30\%

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.

15.4%

CALCULATION

Liquidity Ratio:8013400000.0052076400000.00×100=15.40%\textbf{Liquidity Ratio:} \\[12pt] \dfrac{8013400000.00}{52076400000.00} \times 100 = 15.40\%

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\%