ETHICAL COMPLIANCE REPORT

LEMON TREE HOTELS

Sector:

Consumer Cyclical

Industry:

Lodging

Overall Compliance

non-compliant

PRIMARY BUSINESS FILTER
Hospitality
compliant
REVENUE RATIO FILTER
1.3%
View Calculations
DEBT RATIO FILTER
46.8%
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.

1.3%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{139446000.00}{10767620000.00} \times 100 = 1.30\%

FORMULA

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

Segment	Compliance	Value
Banquet Rentals	compliant	₹7.35
Other Service	compliant	₹58.43
Other Operating Income	compliant	₹58.46
Other Income	compliant	₹5.64
Telephone and Telex	compliant	₹0.06
Room Rental	compliant	₹814.11
Food and Beverage	compliant	₹118.77
Liquor and wine	non-compliant	₹13.94

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.

46.8%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{18891167000.00}{40330443000.00} \times 100 = 46.80\%

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{537444000.00}{40330443000.00} \times 100 = 1.30\%

FORMULA

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