ETHICAL COMPLIANCE REPORT

NHPC

NHPC Logo

Sector:

Utilities

Industry:

Utilities - Renewable

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.

15.5%

Non Compliant
Questionable
Compliant

CALCULATION

Revenue Ratio:17025600000.00111345000000.00×100=15.50%\textbf{Revenue Ratio:} \\[12pt] \dfrac{17025600000.00}{111345000000.00} \times 100 = 15.50\%

FORMULA

Revenue Ratio:Unethical SegmentsTotal Revenue×100  ≤  3%\textbf{Revenue Ratio:} \\[12pt] \dfrac{\text{Unethical Segments}}{\text{Total Revenue}} \times 100 \; \leq \; 3\%
SegmentComplianceValue
Advance Against Depreciation -written Back During the Year
compliant
compliant		₹54.76
Performance Based Incentive
compliant
compliant		₹791.83
Income From Finance Lease
questionable
questionable		₹804.33
Income From Operating Lease
compliant
compliant		₹332.22
Revenue From Project Management/ Consultancy Works
compliant
compliant		₹6.85
Power Trading
compliant
compliant		₹11.52
incentive
compliant
compliant		₹3.41
interest & other
non-compliant
non-compliant		₹376.27
interest & dividend
non-compliant
non-compliant		₹521.96
other
compliant
compliant		₹839.79
Sale of Power
compliant
compliant		₹7,391.56

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.

31.5%

CALCULATION

Debt Ratio:293817300000.00932954900000.00×100=31.50%\textbf{Debt Ratio:} \\[12pt] \dfrac{293817300000.00}{932954900000.00} \times 100 = 31.50\%

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.

3.9%

CALCULATION

Liquidity Ratio:36223800000.00932954900000.00×100=3.90%\textbf{Liquidity Ratio:} \\[12pt] \dfrac{36223800000.00}{932954900000.00} \times 100 = 3.90\%

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\%