ETHICAL COMPLIANCE REPORT

NLC INDIA

Sector:

Utilities

Industry:

Utilities - Regulated Electric

Overall Compliance

questionable

PRIMARY BUSINESS FILTER
Lignite Mining and Generation of Power
compliant
REVENUE RATIO FILTER
3.9%
View Calculations
DEBT RATIO FILTER
40.7%
View Calculations
LIQUIDITY RATIO FILTER
1.4%
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.

3.9%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{5445300000.00}{139464400000.00} \times 100 = 3.90\%

FORMULA

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

Segment	Compliance	Value
Sale of Power	compliant	₹10,444.64
Sale of Light	compliant	₹648.68
Sale of Coal	compliant	₹1,757.58
Sale of Fly Ash & Other By-products	compliant	₹148.13
Other Income	compliant	₹402.88
Interest Income	non-compliant	₹544.53

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.

40.7%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{223794500000.00}{549418100000.00} \times 100 = 40.70\%

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.

1.4%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{7455900000.00}{549418100000.00} \times 100 = 1.40\%

FORMULA

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