ETHICAL COMPLIANCE REPORT

TATA POWER CO

Sector:

Utilities

Industry:

Utilities - Independent Power Producers

Overall Compliance

non-compliant

PRIMARY BUSINESS FILTER
Energy Company
compliant
REVENUE RATIO FILTER
2.6%
View Calculations
DEBT RATIO FILTER
35.5%
View Calculations
LIQUIDITY RATIO FILTER
6.6%
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.

2.6%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{16564400000.00}{632723200000.00} \times 100 = 2.60\%

FORMULA

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

Segment	Compliance	Value
Revenue From Power Supply and Transmission Charges	compliant	₹61,448.90
other income	compliant	₹166.98
Dividend	questionable	₹764.05
Gain/(loss) on Investments	questionable	₹80.00
Interest Income	non-compliant	₹812.39

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.

35.5%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{494798100000.00}{1395534900000.00} \times 100 = 35.50\%

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.

6.6%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{91519100000.00}{1395534900000.00} \times 100 = 6.60\%

FORMULA

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