ETHICAL COMPLIANCE REPORT

JSW ENERGY

Sector:

Utilities

Industry:

Utilities - Independent Power Producers

Overall Compliance

questionable

questionable

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.

3.2%

Non Compliant
Questionable
Compliant

CALCULATION

Revenue Ratio:3875600000.00119413400000.00×100=3.20%\textbf{Revenue Ratio:} \\[12pt] \dfrac{3875600000.00}{119413400000.00} \times 100 = 3.20\%

FORMULA

Revenue Ratio:Unethical SegmentsTotal Revenue×100  ≤  3%\textbf{Revenue Ratio:} \\[12pt] \dfrac{\text{Unethical Segments}}{\text{Total Revenue}} \times 100 \; \leq \; 3\%
SegmentComplianceValue
Income From energy
compliant
compliant		₹11,421.70
Income from service concession arrangement
compliant
compliant		₹4.30
interest & dividend
non-compliant
non-compliant		₹387.56
Others
compliant
compliant		₹127.78

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.

53.8%

CALCULATION

Debt Ratio:313266100000.00582691000000.00×100=53.80%\textbf{Debt Ratio:} \\[12pt] \dfrac{313266100000.00}{582691000000.00} \times 100 = 53.80\%

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.

7.2%

CALCULATION

Liquidity Ratio:42066000000.00582691000000.00×100=7.20%\textbf{Liquidity Ratio:} \\[12pt] \dfrac{42066000000.00}{582691000000.00} \times 100 = 7.20\%

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\%