Daily Excelsior...Business

Enron shares
tumble further

NEW YORK, Nov 30: Enron Corporation shares tumbled to an all-time low of 36 cents yesterday .....more

Tatas to get out of HPL
at convenient time

KOLKATA, Nov 30: West Bengirupam Sen said today that the Tatas would be allowed to exit from .....more

Aggregate deposit of SBI in
AP rises to Rs 373 crores

ITANAGAR, Nov 30: The aggregate deposit of the State Bank of India (SBI) in Arunachal Pradesh....more

Equities fluctuate within
a narrow margin

CHENNAI, Nov 30: On a day of thin trading, equities fluctuated within a narrow margin and finished....more

Sugar remains weak

NAVI MUMBAI, Nov 30: Sugar prices were generally weak on subdued demand coupled with thin ........more

MSIL collaborates
with Asian
Electronics

BANGALORE, Nov 30: Karnataka-owned Mysore Sales International Limited (MSIL), a pioneer in.........more

Enron shares tumble further

NEW YORK, Nov 30: Enron Corporation shares tumbled to an all-time low of 36 cents yesterday amid reports that federal prosecutors were wanting to monitor Securities and Exchange Commission’s investigations into accounting fraud at once high-flying energy firm.

Enron shares, which plunged 85 per cent on Wednesday, fell another 40 per cent in New York to 36 cents at yesterday’s close amid specualtion the energy giant is likely headed for the biggest bankruptcy in US history.

Enron stock’s spectacular plunge, from about 60 dollars a share early in the year to 36 cents on Thursday, has attracted the interest of officials in New York and Texas, including the US attorneys’ offices in Manhattan and Houston, the Wall Street Journal reported quoting knowledgeable person.

The company said it may not make a previously-announced dividend payment as part of an action announced wednesday to "preserve value in its core energy businesses" amid financial restatements due to improper accounting and a failed merger with Crosstown Rival Dynergy Inc.

Meanwhile, Enron Europe, the London-based subsidiary of the energy giant, has gone into administration — receiving protection from creditors under British law comparable to Chapter 11 bankruptcy in the United States.

"Pricewaterhousecoopers has been appointed administrator to Enron Europe," a company official told AFP.

Analysts expect the company to file soon for bankruptcy protection in US courts, since the loss of investment grade status has made some 3.9 billion dollars of debt come due immediately.

The failed merger with rival dynergy "really points to bankruptcy as being imminent," said Edward Jones analyst Brian Youngberg. Texaco, with 35.9 billion in assets until it filed for bankruptcy in 1987, has held the record since then.

The sudden deep financial troubles of Enron sent ripples of concern across Asia, damaging investments in Japan and potentially undermining businesses in South Korea and Australia, Wall Street Journal said.

Enron’s presence in South Korea appears to be nearing an end. According to officials at SK Corp, Enron plans to sell its 50 per cent stake in joint venture energy distribution firm SK-Enron Co.

SK-Enron was formed in 1999, and controls about 25 per cent of South Korea’s natural-gas market, according to the firm’s web site.

Pressure elsewhere in the region was felt primarily in the financial markets. In Tokyo, the value of money management funds Nikko Asset Management Co, UFJ Partners Asset Management Co, Japan Investment Trust Management Co. and Sumisei Global Investment Trust Management Co, fell due to their exposure to Enron debt, which amouted to about 40 billion yen (324.9 million dollars). Enron news also a parked volatility in the copper and US dollar market, the journal reported quoting traders. (PTI)

Tatas to get out of HPL at convenient time

KOLKATA, Nov 30: West Bengirupam Sen said today that the Tatas would be allowed to exit from Haldia Petrochemicals Limited (HPL) at a mutually convenient time, but denied Reliance industries have been invited to pick up stake in the company.

"As far as my information goes, we are not talking with RIL, at least for a stake in HPL. We have not spoken to them (RIL) in this connection," Sen told reporters here.

It was reported in a section of the press that West Bengal Government might invite RIL to pick up a stake in the Rs 5700 crore company if The Chatterjee Group (TCH) failed to bring in the promised additional Rs 107 crore towards their equity by December 13.

Chief Minister Buddhadev Bhattacharjee, however, refused to comment on the matter.

"I will not say yes or no whether the Government is in talks with RIL," Bhattacharjee told reporters at the State secretariat.

Sen said, "Tatas have told us that the project does not gel with their core competence and we have agreed to allow them to exit at a mutually convenient time."

The exit of the Tatas would come at such a time that it would not have any adverse impact on the fate of the company. "The separation will be done at the State Government’s convenience," he said.

West Bengal Government and TCG hold 43 per cent each in the debt-ridden HPL while the balance 14 per cent is with the Tatas. The talks are on to rope in Indian Oil Corporation as the fourth partner in the project. (PTI)

Aggregate deposit of SBI in AP rises to Rs 373 crores

ITANAGAR, Nov 30: The aggregate deposit of the State Bank of India (SBI) in Arunachal Pradesh has gone up to Rs 373 crores, registering a growth of 15.3 per cent in the year ending October 31 last, according to SBI Regional Manager Dilip Sarma.

Talking to newsmen here yesterday, Mr Sarma said the aggregate lending during the period was only Rs 67 crore.

The credit deposit ratio in Arunachal Pradesh is around 22 per cent. The reason for it is the weak capacity to absorb credit. Several measures were being initiated to strengthen the capacity to undertake commercially viable activities, Mr Sarma said.

Special thrust was being given by the bank to increase lending to individuals in the personal segment for purchase of vehicles, consumer durables and construction of houses. An impediment to housing loans is the absence of the transfer of property act in the state. The Government is in the final stages of implementing this act, he said.

The region’s jurisdiction covers nine districts of Arunachal Pradesh and the two districts of north Lakhimpur and Dhemaji in Assam. SBI has 36 branches, 12 of which conducts Government transactions. Mr Sarma said SBI is actively considering the proposal to set up a branch in Gerukamukh to cater to the needs of the NHPC.

He said special emphasis was also being given to agricultural lending and farm mechanization.

A bulk of SBI’s credit dispensed is towards various poverty alleviation programmes. We are strongly encouraging finance of activities taken up by the self-help groups under the centrally sponsored scheme with particular emphasis on women, he said.

The Sate Bank’s share of banking business in Aruanchal Pradesh is approximately 62 per cent, he said.

He said about 30 per cent creditors had defaulted in repaying the loan.

Mr Sarma said with a view to increasing customer convenience and comfort in banking business, SBI is renovating and refurbishing bank branches.

We are fully computerizing our banking activities in Itanagar branch. There is a plan to fully computerise branches in the district headquarters,too. The focus of technology upgradation is to provide quick and qualitatively superior customer service. Automatic tellor machine would be set up in Itanagar, he said. (UNI)

Equities fluctuate within a narrow margin

CHENNAI, Nov 30: On a day of thin trading, equities fluctuated within a narrow margin and finished with small losses on the Madras stock market today.

The MSE index remained unchanged at its previous day’s close of 4779.95 points.

Electropoly shed Rs 2 to Rs 115. Vikram Soft, which opened higher at Rs 10, moved down to touch Rs 7, before concluding the day at Rs 8 against yesterday’s close of Rs 8.25. Both G.V.Films (Rs 9) and India Cements Capital (Rs 12.50) were at their previous levels. (PTI)

Sugar remains weak

NAVI MUMBAI, Nov 30: Sugar prices were generally weak on subdued demand coupled with thin trading as the markets remained partly closed at the wholesale sugar market here today, a leading trader said.

However, prices of small grade continued to trade steady at Rs 1410-1450 for the third day today on demand-supply balance while that of medium grade traded at Rs 1460-1512 as against the previous figure of Rs 1455-1513.

Ex-factory (Nakka) prices of small grade fell to Rs 1390-1402 compared to yesterday’s price of Rs 1395-1410 while that of medium grade traded low at Rs 1428-1475 compared to yesterday’s 1433-1475.

Following were the rates in rupees per quintal: small grade 1,410/1,450, medium grade 1,460/1,512 ex-factory (nakka) small grade 1,390/1,402 medium grade 1,428/1,475. (UNI)

MSIL collaborates with Asian Electronics

BANGALORE, Nov 30: Karnataka-owned Mysore Sales International Limited (MSIL), a pioneer in the field of marketing of various products and services, entered into a tie-up with Asian Electronics Limited to promote the sale of the later’s energy efficient E" tube lights which was formally launched here today.

An MSIL release said that with a massive rural electrification programme underway in the country and constraints on the availability of power over demand, the energy saving E" tube light would be the best option. For every one lakh conventional tubes that were replaced by Asian e" tubes, the energy cost saved would be around Rs 4.1 crores per year, assuming these lights were burned on an average of ten hours and the power tariff at Rs 4.50 per kwh.

There was a need to create an awareness among the public regarding the benefits of large scale use of energy efficient tube lights and the imperative to save energy, the release added. (UNI)