ETHICAL COMPLIANCE REPORT

RAILTEL CORP OF IND

Sector:

Communication Services

Industry:

Telecom Services

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Telecom
compliant
REVENUE RATIO FILTER
1.7%
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DEBT RATIO FILTER
0.3%
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LIQUIDITY RATIO FILTER
12%
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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.

1.7%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{444100000.00}{26241200000.00} \times 100 = 1.70\%

FORMULA

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

Segment	Compliance	Value
Railways Project Works	compliant	₹266.25
Other Projects	compliant	₹1,036.13
Telecom Services	compliant	₹1,265.44
Interest Income	non-compliant	₹40.51
Investment Gain	questionable	₹3.90
Other Income	compliant	₹11.89

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.

0.3%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{102600000.00}{40495800000.00} \times 100 = 0.30\%

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.

12%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{4851500000.00}{40495800000.00} \times 100 = 12.00\%

FORMULA

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