INTRODUCTION Asashi is largest integrated glass company in india

Products: Automotive saftey glass

Float Glass

Architectural Processed Glass.

Market /Customer Maruti Udyog ltd

TELCO

Mahindra and Mahindra, DCM Toyota

General motors and Daewo Motor, Hundai ,Ford and HM

Asahi India Glass Limited

Achievements Obtained ECE’s ‘E’ mark Certification

ISO 9002 Certification from TUV Bayern Sachsen Germany

QS 9000 Certification from TUV Bayern Sachsen Germany

ISO 14001 Certification from TUV Bayern Sachsen Germany for Environment mgmt

“Best Indian Company in glass and Ceramics Category”

Corporate Super Brand During 2006-07

Prestigious Deming application Prize 2007 by Union of Japanese scientist and Engineers(JUSE)

Asahi India Glass Limited

Shareholding patterns:

Category % shareholding

1 Promoter's Group

• Labroo Family & Associate 21.87

• Maruti Suzuki Ltd 11.11

• Asahi Glass Co ltd 22.19

2 Non Promoters shareholding

• Institution 8.55

• Non institution 32.26

Asahi India Glass Limited

Announcement: 1988-90 First Dividend Declared

1997-98 Issue of Bonus Share Ratio 1:1 with 45% Dividend

2001-02 Bonus Issue Ratio 1:1 with 55% Dividend

2002-03 Share Split of 10 face value into 10 equity of 1 face value to increase liquidity

2004-05 Bonus share of equit Share In the Ratio 1:1

2004-05 Paid 250 % Dividend and 100 % Interim Dividend

Asahi India Glass Limited

Solution 1.

'Financial Structure' The specific mixture of long–term debt and equity that a company uses to finance its operations.

This Company did not maintain ideal Debt Equity Ratio .

Company Focused on Leveraged Financing.

Cost of Debt is (Kd) is Higher than respective Industry requirement.

The total borrowing of the Company has grown 16.23% during 2008-09 from Rs.1,39,143 lakhs to Rs.1,61,730 lakhs.However, it must be stated here that of the total loan figure in 2008-09, Rs. 19,507 lakhs are on account of foreign exchange fluctuations.

In other words, this is not an actual increase in cash borrowings but a ‘book entry’ to account for the depreciation in the exchange rate of the Indian Rupee to the Us Dollar.

Global Financial Crisis is one of major Reason.

Asahi India Glass Limited

Industry Debt equity ratio was 1.77

AIGL Debt Equity Ratio was 8.53 it means capital structure of AIGL Includes 85% debt and only 15 % is Equity portion.

Deprecation Of Rupees Plays an important for Net Loss In books of accounts in year 2008-09

Asahi India Glass Limited

Solution 2

The Company uses foreign currency forward contracts to hedge its risks associated with foreign currency fluctuations relating to firm commitments.

Transactions in foreign currencies are recorded at the exchange rates prevailing on the date of transactions.

Foreign Currency Monetary Item Translation Difference Account' in the financial statements and amortised over the balance period of such long term asset/liability

Asahi India Glass Limited

Transactions outstanding at the year end are translated at exchange rates prevailing at the year end and the profit/loss so determined is recognised in the Profit and Loss Account except for long term foreign currency monetary items in respect of which the Company has exercised the option.

Exchange rate 48.92 rs / Dollar

Real cost of foreign currency loan 49.50 million

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