ETHICAL COMPLIANCE REPORT

MAHINDRA HOLIDAYS

Sector:

Consumer Cyclical

Industry:

Resorts & Casinos

Overall Compliance

non-compliant

PRIMARY BUSINESS FILTER
Hospitality
compliant
REVENUE RATIO FILTER
6.6%
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DEBT RATIO FILTER
9%
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LIQUIDITY RATIO FILTER
3%
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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.

6.6%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{1880217000.00}{28423831000.00} \times 100 = 6.60\%

FORMULA

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

Segment	Compliance	Value
Other income	compliant	₹71.82
Income From Resorts : Wine and Liquor	non-compliant	₹61.77
Vacation Ownership & Resorts Income	compliant	₹2,512.28
Miscellaneous income	compliant	₹70.26
Interest Income	non-compliant	₹126.25

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.

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{8840752000.00}{98464396000.00} \times 100 = 9.00\%

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.

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{2919268000.00}{98464396000.00} \times 100 = 3.00\%

FORMULA

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