ETHICAL COMPLIANCE REPORT

JAIPRAKASH POWER VEN.

Sector:

Utilities

Industry:

Utilities - Independent Power Producers

Overall Compliance

compliant

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.

0.5%

Non Compliant
Questionable
Compliant

CALCULATION

Revenue Ratio:360400000.0071512900000.00×100=0.50%\textbf{Revenue Ratio:} \\[12pt] \dfrac{360400000.00}{71512900000.00} \times 100 = 0.50\%

FORMULA

Revenue Ratio:Unethical SegmentsTotal Revenue×100  ≤  3%\textbf{Revenue Ratio:} \\[12pt] \dfrac{\text{Unethical Segments}}{\text{Total Revenue}} \times 100 \; \leq \; 3\%
SegmentComplianceValue
Electrical Energy
compliant
compliant		₹6,762.78
interest income
non-compliant
non-compliant		₹36.04
other income
compliant
compliant		₹352.47

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.

24.5%

CALCULATION

Debt Ratio:42417900000.00173032700000.00×100=24.50%\textbf{Debt Ratio:} \\[12pt] \dfrac{42417900000.00}{173032700000.00} \times 100 = 24.50\%

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.

5.5%

CALCULATION

Liquidity Ratio:9572400000.00173032700000.00×100=5.50%\textbf{Liquidity Ratio:} \\[12pt] \dfrac{9572400000.00}{173032700000.00} \times 100 = 5.50\%

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\%