ETHICAL COMPLIANCE REPORT

POWER GRID CORP..

Sector:

Utilities

Industry:

Utilities - Regulated Electric

Overall Compliance

questionable

PRIMARY BUSINESS FILTER
Electric Power Transmission Company
compliant
REVENUE RATIO FILTER
3.6%
View Calculations
DEBT RATIO FILTER
49.2%
View Calculations
LIQUIDITY RATIO FILTER
3%
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.

3.6%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{16763500000.00}{470007300000.00} \times 100 = 3.60\%

FORMULA

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

Segment	Compliance	Value
Transmission Charges	compliant	₹42,827.68
Telecom Business	compliant	₹822.27
Consultancy Project Management and Supervision	compliant	₹552.80
Others	compliant	₹674.79
Interest Income	non-compliant	₹559.74
Interest on Differential Provisional and Final Tariff	non-compliant	₹965.56
dividend	questionable	₹151.05
other income	compliant	₹446.84

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.

49.2%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{1234486200000.00}{2508905200000.00} \times 100 = 49.20\%

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.

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{74951200000.00}{2508905200000.00} \times 100 = 3.00\%

FORMULA

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