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The debt crisis in Dubai is having a cascading effect on the company’s risk profile
Credit rating agency CRISIL has downgraded Global Aviation Services Pvt Ltd’s Rs20-crore bank facilities to ‘P3’ from ‘P3+’ after the company lost an online station cargo service contract from its top customer, Emirates. The outlook remains ‘negative’.
CRISIL has also downgraded Global Airport & Ground Services Pvt Ltd’s proposed Rs10 crore long-term bank loan facility to ‘BBB-’ from ‘BBB/Stable’.
The company has lost two of its top customers Emirates and Finnair over the last six months, both of which contributed 80% to its total cargo commission income in 2008-09.
According to company officials, the debt crisis in Dubai has affected the company’s business. Emirates is owned by the Investment Corp of Dubai, which is controlled by the Dubai government.
Global Aviation Services is a part of the Global Group which provides services in airline ticketing, ground handling, logistics, foreign exchange, legal assistance, revenue accounting, interline negotiations, cargo and courier consolidation, road-feeder services, and publicity through its associate companies.
Mukesh Ambani has received an inaugural Dean's Medal from the University of Pennsylvania School of Engineering and Applied Science
Reliance Industries Ltd's chairman and managing director Mukesh Ambani has been awarded the Dean's Medal from the University of Pennsylvania for his visionary leadership in the application of engineering and technology for the betterment of mankind.
Commenting on the inaugural medal, Eduardo Glandt, dean of the School of Engineering and Applied Science, University of Pennsylvania, said, "Mukesh Ambani embodies what the engineering profession can contribute to a country, as someone who seeks to apply technology for the betterment of society."
In his acceptance speech, Mukesh Ambani said, “It (the medal) recognises the collective achievement of the Reliance family and the creativity of over 25,000 engineers in Reliance. I dedicate this medal to the indomitable spirit of our founder chairman, Dhirubhai Ambani and each and every member of the Reliance family."
Mr Ambani is currently steering Reliance's development of a pan-India retail network, a transformational initiative connecting rural and urban India. He was also instrumental in the formation of Reliance Infocomm Ltd, one of the largest information and communications initiatives in the world.
Among Mr Ambani's numerous honours are the 2007 US-India Business Council 'Global Vision' award for leadership; the 2006 ‘ET Business Leader of the Year’ Award by the Economic Times and the first NDTV Profit ‘Global Indian Leader Award’ in 2006.
Mr Ambani was the co-chair of the World Economic Forum in Davos in 2006 and received the 2004 World Communication Award as the ‘Most Influential Person’ in Telecommunications by Total Telecom.
In 2008, Mukesh Ambani was elected vice chairman of the executive committee of the World Business Council for Sustainable Development.
In India, he is a member of the Prime Minister's Council on Trade and Industry and of the Board of Governors of the National Council of Applied Economic Research. He is also Chairman of the Board of Governors of the Indian Institute of Management, Bangalore, and a member of the Indo-US CEO’s Forum, the International Advisory Board of Citigroup, the International Advisory Board of the National Board of Kuwait, and the Advisory Council for Stanford University's Graduate School of Business, among other appointments.
Indian markets declined, despite positive trends in global bourses
The Sensex ended the day at 17,540, declining 75 points from the previous day’s close, while the Nifty closed at 5,245, down 18 points, despite positive global cues.
We had said that the market would end the day at a low and it did so. Currently, there is simply no momentum in the trend. Buyers have turned more cautious. Next week if the Nifty takes support at 5,200, the uptrend may continue or else it will go down a little bit and then bounce back with vigour.
During the day, NTPC rose 1% after the power ministry reportedly asked the petroleum ministry to place a proposal before the empowered group of ministers to allot 12 million standard cubic metres per day (mscmd) of gas from the KG-D6 block to State-run NTPC at $2.34 per million metric British thermal units (mmBtu).
Eicher Motors rose 1%, after the company’s total sales spurted 202.81% to 2,265 units in December 2009 over December 2008.
Transgene Biotek was up 3% after the company signed a pact with Dr Reddy’s Laboratories to manufacture a drug named Orlistat which is used for treating obesity.
AXIS IT&T shot up 10% on reports that the company would consider and approve the rights issue of equity shares on 12 January 2010.
As per reports, prime minister Manmohan Singh said that the economy is expected to grow at 7% this year and may soon return to a sustained high growth path of 9%-10%. Mr Singh pledged that his administration would work to address key constraints in the infrastructure and the agriculture sectors as these were priorities for the government. During trading hours, finance minister Pranab Mukherjee said that the economy could grow at 7.75% in the current fiscal year to end-March.
According to data released by the government, the food price index rose 18.22% in the 12 months to 26 December 2009, lower than an annual rise of 19.83% in the previous week.
According to reports, the government may introduce legislation in the budget session of Parliament to make necessary Constitutional amendments and facilitate the launch of the Goods & Services Tax (GST) although the rollout of this comprehensive indirect tax reform from the scheduled date of 1 April 2010 seems unlikely.
Meanwhile, the government will reportedly allow companies to adjust the fringe benefit tax (FBT) paid by them against the advance tax due in the March 2010 quarter, reducing the hazard of claiming a refund and slightly improving profits at a time of rising costs.
HSBC’s Emerging Markets Index climbed to 56.1 in the December-ended quarter from 55.3 in the third quarter, with measures for manufacturing and services output in the period expanding at their fastest pace in eight quarters.
HSBC said that the pace of the recovery appeared to be easing, as the gain in the index was “considerably weaker” than the 4.6-point advance registered in the third quarter. The index is calculated on 19 manufacturing- and service-sector purchasing manager indexes across 14 countries.
During the day, Asia’s key benchmark indices in China, Japan, South Korea, Hong Kong, Singapore, Indonesia and Taiwan rose by between 0.10%-1.09%.
South Korea’s central bank kept its interest rate unchanged at a record low of 2% for 11 months in a row amid a growing conflict with a government opposed to early monetary tightening.
On Thursday, 7 January 2009, the Dow Jones Industrial Average rose 33.18 points while the S&P 500 was up 4.55 points. However, the Nasdaq Composite was down 1.04 points.
As per US media reports, the labour department reported jobless claims last week had risen by just 1,000 to 434,000, which is less than expected. Continuing claims came in at 4.80 million, lesser than expectations of 4.98 million.
In premarket trading, the Dow was trading six points higher.