ETHICAL COMPLIANCE REPORT

RELIANCE POWER.

RELIANCE POWER. Logo

Sector:

Utilities

Industry:

Utilities - Independent Power Producers

Overall Compliance

non-compliant

non-compliant

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.

42.9%

CALCULATION

Debt Ratio:187658300000.00437602600000.00×100=42.90%\textbf{Debt Ratio:} \\[12pt] \dfrac{187658300000.00}{437602600000.00} \times 100 = 42.90\%

FORMULA

Debt Ratio:Interest Bearing DebtTotal Assets×100  ≤  30%\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.

2.1%

CALCULATION

Liquidity Ratio:9176000000.00437602600000.00×100=2.10%\textbf{Liquidity Ratio:} \\[12pt] \dfrac{9176000000.00}{437602600000.00} \times 100 = 2.10\%

FORMULA

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

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.

8.5%

Non Compliant
Questionable
Compliant

CALCULATION

Revenue Ratio:6901200000.0081450100000.00×100=8.50%\textbf{Revenue Ratio:} \\[12pt] \dfrac{6901200000.00}{81450100000.00} \times 100 = 8.50\%

FORMULA

Revenue Ratio:Unethical SegmentsTotal Revenue×100  ≤  3%\textbf{Revenue Ratio:} \\[12pt] \dfrac{\text{Unethical Segments}}{\text{Total Revenue}} \times 100 \; \leq \; 3\%
SegmentComplianceValue
interest income
non-compliant
non-compliant		₹69.11
Investment gain
questionable
questionable		₹621.01
Other income
compliant
compliant		₹28.44
Sale of Energy
compliant
compliant		₹7,426.45