ETHICAL COMPLIANCE REPORT

RATTANINDIA POWER

Sector:

Utilities

Industry:

Utilities - Renewable

Overall Compliance

non-compliant

PRIMARY BUSINESS FILTER
Power Generation
compliant
REVENUE RATIO FILTER
7.1%
View Calculations
DEBT RATIO FILTER
37%
View Calculations
LIQUIDITY RATIO FILTER
4.8%
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.

7.1%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{2626743000.00}{36691595000.00} \times 100 = 7.10\%

FORMULA

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

Segment	Compliance	Value
Other Income	compliant	₹146.97
Revenue From Operation of Power Plant	compliant	₹2,513.09
Income From Embedded Lease of Power Plant	compliant	₹746.43
Interest Income	non-compliant	₹262.67

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.

37%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{35375512000.00}{95656609000.00} \times 100 = 37.00\%

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.

4.8%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{4616621000.00}{95656609000.00} \times 100 = 4.80\%

FORMULA

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