ETHICAL COMPLIANCE REPORT

RELIANCE INFRASTRUCTU

Sector:

Utilities

Industry:

Utilities - Independent Power Producers

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Infrastructure Construction
compliant
REVENUE RATIO FILTER
0.9%
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DEBT RATIO FILTER
16.3%
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LIQUIDITY RATIO FILTER
3.5%
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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.

0.9%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{1996300000.00}{220659400000.00} \times 100 = 0.90\%

FORMULA

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

Segment	Compliance	Value
Other Operating Revenue	compliant	₹354.55
Engineering and Construction Business	compliant	₹8.99
Infrastructure Business	compliant	₹1,647.26
Interest Income	non-compliant	₹195.86
Power and Transmission Charges	compliant	₹19,602.78
sale of Investments	questionable	₹3.77
other income	compliant	₹252.73

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.

16.3%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{96710400000.00}{591808900000.00} \times 100 = 16.30\%

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.

3.5%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{20812700000.00}{591808900000.00} \times 100 = 3.50\%

FORMULA

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