ETHICAL COMPLIANCE REPORT

TORRENT POWER

Sector:

Utilities

Industry:

Utilities - Independent Power Producers

Overall Compliance

non-compliant

PRIMARY BUSINESS FILTER
Energy Company
compliant
REVENUE RATIO FILTER
0.6%
View Calculations
DEBT RATIO FILTER
34.7%
View Calculations
LIQUIDITY RATIO FILTER
1.3%
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.

0.6%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{1667400000.00}{275275300000.00} \times 100 = 0.60\%

FORMULA

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

Segment	Compliance	Value
Revenue From Power Supply	compliant	₹25,696.03
Manufactured Goods	compliant	₹481.72
Revenue From Trading of Rlng	compliant	₹753.16
Other Operating Revenue	compliant	₹252.30
interest	non-compliant	₹166.74
other income	compliant	₹177.58

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.

34.7%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{115850300000.00}{333924800000.00} \times 100 = 34.70\%

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.

1.3%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{4187400000.00}{333924800000.00} \times 100 = 1.30\%

FORMULA

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