ETHICAL COMPLIANCE REPORT

NTPC

Sector:

Utilities

Industry:

Utilities - Regulated Electric

Overall Compliance

non-compliant

PRIMARY BUSINESS FILTER
Energy Company
compliant
REVENUE RATIO FILTER
1.2%
View Calculations
DEBT RATIO FILTER
48.9%
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.

1.2%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{22406200000.00}{1812673500000.00} \times 100 = 1.20\%

FORMULA

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

Segment	Compliance	Value
Energy Sales	compliant	₹1,76,439.96
Consultancy	compliant	₹169.46
Rent	compliant	₹19.58
Comission	compliant	₹12.71
interest	non-compliant	₹2,240.62
Other operating revenues	compliant	₹266.00
Other non-operating income	compliant	₹2,119.02

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.

48.9%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{2350403000000.00}{4801965700000.00} \times 100 = 48.90\%

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{68473400000.00}{4801965700000.00} \times 100 = 1.40\%

FORMULA

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