ETHICAL COMPLIANCE REPORT

THE INDIAN HOTELS CO.

Sector:

Consumer Cyclical

Industry:

Lodging

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Hospitality
compliant
REVENUE RATIO FILTER
2.3%
View Calculations
DEBT RATIO FILTER
1.8%
View Calculations
LIQUIDITY RATIO FILTER
10%
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.

2.3%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{1606600000.00}{69516700000.00} \times 100 = 2.30\%

FORMULA

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

Segment	Compliance	Value
Shop Rentals	compliant	₹48.89
Membership Fees	compliant	₹206.41
Management and Operating Fees	compliant	₹470.47
Other Operating Income	compliant	₹264.54
Rooms, Restaurants and Banquets Income	compliant	₹5,778.44
Profit on Sale of Current Investment and Others	questionable	₹52.66
Interest Income	non-compliant	₹108.00
Other Income	compliant	₹22.26

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.

1.8%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{2604900000.00}{148558300000.00} \times 100 = 1.80\%

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.

10%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{14855000000.00}{148558300000.00} \times 100 = 10.00\%

FORMULA

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