Dilemma of Asian Bags Essay

Asia report dishful has since 1990 ope stationd as a manufacturer of plastic crew cut bags supplying them on a contract-manufacturing base of operations to well-known supermarket chains, fast-food outlets, pharmacies and department stores. Lately, Asia makeup pop exports customized plastic political machinerier bags to Marks n Spencer and Boots Pharmacy in the United Kingdom.During the Asian pecuniary crisis, Asia Paper Bag had difficulties in meeting its bound add repayment, and had to reconstitute the term loan last year. The term loan was restructured by way of a debt moratorium of 24 months on the principal and an character reference of the maturity period from five age to eight years.Currently, Asia Paper Bags turn over is about Rs 3million per month with an average net profit margin of 7%. Lately, with the increase in institution cover prices, crude(a) materials for plastic bag merchandise have increase by over 5% to USD1,200 per ton. Asia Paper Bags capacity ut ilization is still busted at unless 40%, later it expanded rapidly pre-crisis. Asia Paper Bag Sdn Bhd s resultion capacity increased from 200,000tonnes per annum to 350,000tonnes per annum during the pre-crisis period. This was when the company borrowed a term loan of Rs. 10 million to finance the machinery. The raw materials, PE resins, are purchased mainly from Singapore and Thailand, whilst only 15% is sourced domestically.Q.1 List the qualitative risks of Asia Paper Bag relation to bank lending .Q.2 List and explain the appropriate financial ratios to analyze the financial performance (profitability) of Asia Paper Bag Sdn Bhd (Malay equivalent of incorporated).Q.3 State the motives for employ ratio abridgment as a credit evaluation tool.EQUITY inquiryMr. Prashant Gupta is interested in investing in equity shares of Infosys and Hamdard. Infosys Technologies Ltd. (NASDAQ INFY) which was started in 1981 by septette people with US$ 250. Today, it is a globular leader in th e next generation of IT and consulting with revenues of over US$ 4 billion. It offers cover argument and technology consulting, application services, systems integration, product engineering, custom software development, maintenance, re-engineering, independent examen and validation services, IT infrastructure services and business process outsourcing. Hamdard (Wakf) Laboratories, India is a notable pharmaceutical company in India known for its Unani and Ayurvedic products.It is the worlds largest manufacturer of Unani medicinesSome of its more famous products include Safi, Sharbat Rooh Afza, Cinkara, Roghan Badam Shirin and Pachnol. It is associated with Hamdard Foundation, India. Being conservative in nature, he wants to determine the risk associated with investments. In specific terms, he wants to seek entropy related to both levered and unlevered beta of these companies. He approaches Nitin Shah, a financial consultant to do the needful. Nitin has collected the relevant in formation tiny below Number(i) Monthly returns on equity shares of Infosys and Hamdard for a period of 2 years (w.e.f. October 2006 to September 2008) along with portfolio of S&P CNX NIFTY. (ii) Return on 364-days treasury bills issued by Government of India for the period 2007-08 is 5.15 per penny per annum and 0.419 per month. This rate is to be used as a proxy for risk-free rate of return. (iii) Debt-equity ratio (based on the average of 2004 to 2008) is 1.6 per cent for Wipro and 31.4 per cent for Dabur. (iv) Corporate tax is 35 per cent.Q. 1 Compute the Beta and read it for Prashant. Examine different circumstances with analysis of data. __________________________________________________________________SUBJECT RISK UNDERWRITING AND CLAIMS(A) Mr. Wilson has a car which is 12 years old. The Market nourish of which is Rs. 1.00 Lacs. However, Mr. Wilson wishes to insure this car for Rs. 5 lacs due(p) to his sentiments attached to it.(B) Mr. Mathew purchased a Money stand Po licy from M/s. Supreme brio amends for a amount apprised of Rs. 2.00 Lacs for 15 years. The survivalBenefit later 5 years accrues 25% of Sum Insured. A bonus was accumulated to the maturity.Q.1 discuss as a Motor Insurance Underwriter, how you would react to this? Q.2 Calculate the sum collectable at the maturity of the Policy.