ETHICAL COMPLIANCE REPORT

EIH ASSOCIATED HOTELS

Sector:

Consumer Cyclical

Industry:

Lodging

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Hospitability
compliant
REVENUE RATIO FILTER
2.6%
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DEBT RATIO FILTER
0.7%
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LIQUIDITY RATIO FILTER
7.1%
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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.

2.6%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{105050000.00}{3978900000.00} \times 100 = 2.60\%

FORMULA

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

Segment	Compliance	Value
Interest income	non-compliant	₹1.31
Net Gain on Sale of Investments	questionable	₹9.20
Other Income	compliant	₹2.60
Room Income	compliant	₹253.45
Food and beverage	compliant	₹113.78
Other services	compliant	₹17.57

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.

0.7%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{40415000.00}{5634590000.00} \times 100 = 0.70\%

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.

7.1%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{397420000.00}{5634590000.00} \times 100 = 7.10\%

FORMULA

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