Asia Paper Bag has since 1990 operated as a maker of plastic bearer bags providing them on a contract-manufacturing footing to well-known supermarket ironss. fast-food mercantile establishments. pharmaceuticss and section shops. Recently. Asia Paper Bag exports customized plastic bearer bags to Marks n Spencer and Boots Pharmacy in the United Kingdom.
During the Asiatic fiscal crisis. Asia Paper Bag had troubles in run intoing its term loan refund. and had to reconstitute the term loan last twelvemonth. The term loan was restructured by manner of a debt moratorium of 24 months on the principal and an extension of the adulthood period from five old ages to eight old ages.
Presently. Asia Paper Bag‘s turnover is about Rs 3million per month with an mean net net income border of 7 % . Recently. with the addition in universe oil monetary values. natural stuffs for plastic bag production have increased by over 5 % to USD1. 200 per ton. Asia Paper Bag’s capacity use is still low at merely 40 % . after it expanded quickly pre-crisis. Asia Paper Bag Sdn Bhd ‘s production 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 natural stuffs. PE resins. are purchased chiefly from Singapore and Thailand. whilst merely 15 % is sourced domestically.
Q. 1 List the qualitative hazards of Asia Paper Bag relation to bank loaning.
Q. 2 List and explicate the appropriate fiscal ratios to analyse the fiscal public presentation ( profitableness ) of Asia Paper Bag Sdn Bhd ( Malay equivalent of incorporated ) .
Q. 3 State the motivations for utilizing ratio analysis as a recognition rating tool.
Mr. Prashant Gupta is interested in puting in equity portions of Infosys and Hamdard. Infosys Technologies Ltd. ( NASDAQ: INFY ) which was started in 1981 by seven people with US $ 250. Today. it is a planetary leader in the “next generation” of IT and confer withing with grosss of over US $ 4 billion. It offers span concern and engineering consulting. application services. systems integrating. merchandise technology. usage package development. care. re-engineering. independent testing and proof services. IT substructure services and concern procedure outsourcing. Hamdard ( Wakf ) Laboratories. India is a celebrated pharmaceutical company in India known for its Unani and Ayurvedic merchandises.
It is the world’s largest maker of Unani medicinesSome of its more celebrated merchandises include Safi. Sharbat Rooh Afza. Cinkara. Roghan Badam Shirin and Pachnol. It is associated with Hamdard Foundation. India. Bing conservative in nature. he wants to find the hazard associated with investings. In specific footings. he wants to seek informations related to both levered and unlevered beta of these companies. He approaches Nitin Shah. a fiscal adviser to make the needful. Nitin has collected the relevant information detailed below: Number
( I ) Monthly returns on equity portions of Infosys and Hamdard for a period of 2 old ages ( w. e. f. October 2006 to September 2008 ) along with portfolio of S & A ; P CNX NIFTY. ( two ) Return on 364-days exchequer measures issued by Government of India for the period 2007-08 is 5. 15 per cent per annum and 0. 419 per month. This rate is to be used as a placeholder for riskless rate of return. ( three ) Debt-equity ratio ( based on the norm of 2004 to 2008 ) is 1. 6 per cent for Wipro and 31. 4 per cent for Dabur. ( four ) Corporate revenue enhancement is 35 per cent.
Q. 1 Compute the Beta and construe it for Prashant. Examine different fortunes with analysis of informations. __________________________________________________________________
SUBJECT – RISK UNDERWRITING AND CLAIMS
( A ) Mr. Wilson has a auto which is 12 old ages old. The Market value of which is Rs. 1. 00 Lacs. However. Mr. Wilson wishes to see this auto for Rs. 5 lacs due to his sentiments attached to it.
( B ) Mr. Mathew purchased a ‘Money Back Policy’ from M/s. Supreme Life Insurance’ for a Sum Assured of Rs. 2. 00 Lacs for 15 old ages. The survival Benefit after 5 old ages accrues @ 25 % of Sum Insured. A fillip was accumulated to the adulthood.
Q. 1 Discuss as a Motor Insurance Underwriter. how you would respond to this? Q. 2 Calculate the amount collectible at the adulthood of the Policy.