Asahi India Glass

Asahi India internal-combustion engine Limited: Look Within: Look Beyond The course of instruction 2008-09 proved to be a tough socio-economic class for Asahi India provide Limited (AIS). First time since its inception 23 days ago, the company reported a net loss of `427 one thousand thousand (against a profit of `81 one million million in the front year). Though the gross sales showed a healthy emersion but the bottom line of the company became negative. `For AIS, 2008-09 has been a year of reversals if seen from a financial perspective. A combination of high introduce costs, tapering demand and a sharp depreciation of the rupee have meant that the Company has, for the first time in its twenty-three years of existence, posted a net loss in the books of accounts. Besides other factors, change magnitude interest cost of `1270 million (last year `849 million) also contributed to the financial woes being faced by AIS. In view of the set back the management is having a relook at the financing mix of the company with a debt integrity ratio of around 7 times as on 31st March 2011. Should the company continue to pursue a highly leveraged capital structure as in the past times or steps need to taken to moderate the debt honor ratio? The management also needs to explore options to line up the capital structure of the company.

The Beginning AIS was set up as a joint venture in the year 1987 by Labroo Family, Asahi Glass Company Limited, Japan and Maruti Udyog Limited (later renamed as Maruti Suzuki Limited). It set up its first plant for the production of toughened automotive scrap at Bawal, in the state of Haryana with an installed capacity of 260,000 square meters and commenced supplies to its resole customer Maruti Suzuki Limited. The company remained a ` integrity plant single customer company for initial years, though the capacity was increased by over 70% (to 442,000 square meters) to meet the ripening requirements of its sole customer. Mr. Sanjay Labroo, is a graduate in Finance and trouble from the Wharton School of Business & Finance, Pennsylvania,... If you want to get a full essay, order it on our website: Orderessay

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