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By:

Naresh Kamath

5 November 2024 at 5:30:38 am

Indian Tourists Need a Reputation Reset

India has long taken pride in the philosophy of ‘Atithi Devo Bhava’ - the belief that guests deserve warmth, respect and dignity. It is an idea deeply woven into the country’s cultural imagination, often been projected as a defining Indian value. As millions of Indians travel overseas every year, the conduct of a small but highly visible section of Indian tourists is increasingly shaping how India itself is perceived abroad. The issue is not about a single incident or a handful of viral...

Indian Tourists Need a Reputation Reset

India has long taken pride in the philosophy of ‘Atithi Devo Bhava’ - the belief that guests deserve warmth, respect and dignity. It is an idea deeply woven into the country’s cultural imagination, often been projected as a defining Indian value. As millions of Indians travel overseas every year, the conduct of a small but highly visible section of Indian tourists is increasingly shaping how India itself is perceived abroad. The issue is not about a single incident or a handful of viral videos but a pattern that is drawing notice from hotels, tourism operators and local authorities across the world. The debate gained fresh momentum after reports emerged of a Swiss hotel issuing a notice specifically addressed to Indian guests. The advisory reportedly requested guests not to pack food from breakfast buffets for later consumption and reminded them to maintain silence in corridors and balconies. Hotels routinely issue guidelines. But when a particular nationality becomes the subject of a specific advisory, it inevitably raises larger questions about perception. “It is a sorry state of affairs. Indians, especially in groups, are displaying atrocious behaviour. This was anyway bound to happen,” says Subhash Motwani, founder of Namaste Tourism. Embarrassing Incidents Whether the notice was justified is another separate matter. The question is why such perceptions are emerging in the first place. Recent months have seen several incidents involving Indian tourists gain traction on social media. One widely circulated video showed travellers performing garba on an airport tarmac in Vietnam. Garba is among India’s most vibrant cultural traditions and a source of immense pride for millions. Yet airports are highly regulated spaces where safety protocols and discipline take precedence over celebration. The incident became symbolic of a larger problem. The rise of social media has encouraged some travellers to treat foreign destinations as stages for content creation. Public dancing, loud celebrations, disruptive behaviour and attention-seeking stunts may generate views and engagement online, but they can also leave lasting impressions on locals and fellow tourists. India is hardly the first country to confront such a challenge. During the 1950s and 1960s, American tourists acquired a reputation for arrogance abroad, giving rise to the phrase “Ugly American.” Britain spent decades dealing with the international embarrassment caused by football hooliganism. China faced similar concerns as outbound tourism surged during the early years of the twenty-first century. A nation’s image is shaped not just by its economic achievements and diplomatic influence but also by the behaviour of its citizens overseas. India today finds itself in a similar situation. Indian tourists are now among the most visible traveller groups across Europe, Southeast Asia and the Middle East. This is, in many ways, a remarkable success story. However, with visibility comes responsibility. Hospitality professionals across destinations frequently point to recurring concerns. Excessive noise, queue-jumping, disregard for local regulations, overcrowding hotel rooms and attempts to bypass established rules through jugaad are among the complaints often cited. Collectively, repeated experiences can create lasting perceptions. The most revealing aspect of the debate is that Indian travellers often display exemplary discipline in countries known for strict law enforcement. In destinations such as Singapore, the UAE, Qatar and Saudi Arabia, compliance with rules is generally high. Complaints tend to emerge more frequently in places perceived as relaxed or lenient. That suggests the challenge is not one of awareness. Most travellers understand the rules perfectly well. The problem is often a mindset that rules can be negotiated when consequences appear unlikely. Changing that mindset is far more important than introducing additional regulations or issuing fresh advisories. Every interaction at an airport, hotel, restaurant, tourist attraction or public transport system contributes to how a country is viewed. These everyday encounters often shape perceptions more powerfully than government campaigns or tourism advertisements. As India stakes its claim to a larger role in the world, its citizens must recognise that national prestige is shaped not only by economic achievements and diplomatic successes, but also by everyday behaviour abroad. The overwhelming majority of Indian tourists travel responsibly and leave behind positive impressions. Their conduct rarely becomes news because courtesy seldom goes viral. Yet a handful of highly visible incidents can overshadow thousands of positive experiences. The challenge is to encourage responsible travel and a greater awareness that behaviour abroad carries consequences beyond the individual. The conduct of Indian citizens overseas should reflect the confidence and values of a nation seeking not merely recognition but enduring respect. (The writer is a senior journalist based in Mumbai. Views personal.)

What a Company's Balance Sheet Doesn't Tell You

The strongest-looking balance sheets can sometimes conceal the greatest risks.

AI generated image
AI generated image

Imagine a person named Bharath who wants to buy a house. He visits a bank and tells the bank that he earns Rs 1 lakh per month and has savings of Rs 10 lakh. On paper, Bharath appears financially strong.


However, Bharath forgets to mention that he is involved in a court case where he may have to pay Rs 20 lakh in damages. He has also guaranteed a friend's loan of Rs 15 lakh, and if the friend fails to repay, Bharath will be responsible. Suddenly, Bharath's financial position looks very different.


This simple example explains what often happens in the corporate world. Many large companies report healthy profits and strong balance sheets, but certain risks remain hidden in the notes to accounts rather than appearing directly in the financial statements. As chartered accountants, we call these hidden exposures the "ghosts" in the balance sheet.


One common example is contingent liabilities. Suppose Bharath receives a notice from the Income Tax Department claiming additional tax of Rs 5 lakh. Bharath disagrees and challenges the demand in court. Since the outcome is uncertain, he does not record it as a liability today. Instead, he merely discloses it.


Companies follow the same accounting principles. A company may be facing tax disputes worth hundreds or even thousands of crores, but these amounts may appear only in the notes to accounts. Investors who look only at profits may miss these important risks.


Another area of concern is related-party transactions. Assume Bharath owns a shop and frequently buys goods from his brother's company. If he pays a higher-than-market price to help his brother earn more profits, his own business suffers.


Similarly, some companies enter into transactions with promoter-owned entities, subsidiaries, or group companies. While many such transactions are legitimate, excessive dealings can sometimes raise questions about transparency and whether shareholder interests are being protected.


A third hidden risk involves guarantees and commitments. Imagine Bharath signs as a guarantor for his cousin's bank loan. Today, Bharath owes nothing. However, if the cousin defaults, Bharath must repay the entire loan.


Many large companies provide guarantees for subsidiaries, joint ventures, or group entities. These guarantees may not appear as debt on the balance sheet, yet they can become major liabilities in the future.


Investors should also be cautious about complex group structures. Suppose Bharath owns five small businesses. One business is profitable, while the other four are making losses. If someone only looks at the profitable business, they may believe Bharath is financially secure.


Similarly, large corporations often operate through multiple subsidiaries and associate companies. Losses, borrowings, or financial difficulties in one entity can eventually affect the entire group.


This is why smart investors do not stop at the profit and loss account. They read the notes to accounts, examine contingent liabilities, review related-party transactions, and study auditor observations.


The lesson is simple: if you were lending money to Bharath, you would want to know not only what he owns but also what risks he may face in the future. The same principle applies when investing in companies.


A balance sheet can show strength, but the real story often lies in the fine print. The hidden risks may not be visible today, yet they can significantly affect a company's future. For investors, identifying these "ghosts" before they emerge is one of the most important steps toward making informed and responsible investment decisions.

 

(The writer is a Chartered Accountant based in Thane. Views personal.)


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