11 year old retailer, Subhikha, is on the verge to close down a significant number of stores of its total 1600 stores all across the country. This is happening because of the major cash crunch being faced by the company.
Retail chain which is being promoted by Chennai based R. Subramaniam and Wipro’s promoter Azim Premji, is currently battling for survival. But promoters showing their confidence said, it will definitely not be closed down, but 10% stores are being removed from the kitty, to reduce the load. The promoters also said that it’s not the consequence of any demand reduction, but just the fact that they tried to grew too much, too soon, without substantial backing which created chaos and the current cash crisis.
Company currently has about 15000 employees, the salaries of which has been on hold since October and also the rentals of the stores operated under the name. The company officials say that we have overreached ourselves, by expanding at a rate that we couldn’t handle.
The company has recently touched the turnover of Rs. 2305 crores in 2007-08 which is 7 times of its levels in 2005-06. Company now wants to reduce its cost by shutting down stores, and relocating them nationally to locations where the rentals are low, taking advantage of the falling rentals across the country.
Company currently needs an infusion of about Rs 300 crores, but how they are going to manage that, nobody has an idea. With a net worth of about Rs 250 crores and liabilities of about 750 crores, the future of the company does look dim to everyone but the promoter R. Subramaniam still calls themselves a "Golden Egg Laying Duck" and still is positive on their target of 2300 stores and Rs 4300 crores of turnover, but remarks that they will be an year late for that now.
On receiving the money and fulfilling the gap that they have, he first of all wants to pay the dept and that start on with the fresh operations of the company which are on hold for some time now.
Wishing Subhiksha a speedy recovery, for they dream to be the "Walmart" of India..
A confident ford besides falling sales and their falling share prices looks confident on sailing through this mayhem all alone. On latest reports, Ford lost a massive $5.9 billion in the fourth quarter and about $5.5 billion in cash as sales slumped but still is confident on passing through without the Federal contribution of loans.
Ford reported that it has gone through major losses of $14.6 billion in 2008 with 2009 looking tough to. In its struggle through this, Ford plans to cut 1200 jobs and to borrow $10.1 billion from its existing line of credit.
Ford’s CEO Alan Mullaly has reported a loss of $2.46 per share in the quarter ending December ’08 and also informed about the loss of $1.13 per share in the year before that. Revenue has also been reported to have fallen by 36% from $45.5 billion in 2007.
GM and Chrysler reported to have been granted $13.4 billion and $4 billion loans by the US Treasury Department respectively. Ford also been granted $9 billion by the department, but Ford believes that it can sail through 2009 safely without using it unless unexpected happens. This is so for Ford had a cash reserve of $13.4 billion as of Dec 31 ’08 and also expects to receive the $10.1 billion soon.
Economy stimuli plan, suggested by Obama, which considers the return of $500 to every citizen of America, to stimulate the economy, and to increase the cash flow in the market is the bill which is to be passed first by the American Parliament house. This bill will spread an amount of $825 billion amongst the citizens of America, is expected to increase the money spent by the Americans for the same amount.
This expansive and expensive bill is supposed to be brought down in front of the Parliament house by mid of February, and will clear easily looking at the majority that the Democrats have in the Parliament but considering the new kind of politics that Obama wants to show, he also considers the Republicans to follow the steps and support the bill.
This bill, considering the amount is the single largest bill ever passed by the house which the new President has been working from the very first day since he joined office, to jerk the country out of the 1 year old recession that he inherited from the former President.
The bill will go to the house in mid-February which is casted as the first step towards turning around the sleighing economy while planning for the long-term objectives.
Republicans leaders, which have been India’s friends since quite a long time, democrats are a new step towards indo-us ties. The new American leader being a democrat, open his arms wide towards the country which he sees as the biggest democracy.
US president praised India on their shared belief in democracy, liberty, pluralism, and religious tolerance, ahead of observance of Indian Republic Day. He said that India has shared a lot of things with America, may it be the fight against terrorism, or any endeavor towards building a better world. He also praised India on standing shoulder to shoulder to provide benefits to the whole world, may it be the scientists solving environmental problems together, doctors inventing new medicines, engineers advancing our societies, entrepreneurs generating prosperity, our educators laying foundations for the better younger generation or the governments working towards the peace, prosperity and stability around the globe.
Obama stated that, “Indians should know that they have no better friend and partner than the people of the United States” and reinstating the above statement he said, “It is our shared values that form the bedrock of a robust relationship across peoples and governments”. He then said that, these values and ideals are the pillars which enable us to meet any challenge, whatsoever.
On conclusion of his speech, he wished the Prime Minister of India a speedy recovery who has undergone a heart bypass surgery on Saturday.
America under the new leader seems a lot promising to the outer world, with especially those who are not in real good terms with the world’s strongest nation. Countries which are so lined up are North Korea, Iran, and others. Some of the world leaders which have come forward are the Cuban revolutionary leader “Fidel Castro” who said to have liked the new American leader and many such stories to explore.
Where North Korea and Iran seems to have open up with ideas towards the defusing the nuclear-tinged tensions amongst the nations, but what they are going to demand from America in return, nobody is clear about any such anticipation. Though America is still suspicious about the Iran’s nuclear program, Iranian president’s threat about Israel, and Tehran’s support to terrorists in Iraq, pulls a shadow on what they are actually saying on the face.
Although the stand of America towards the Mid-east tensions with all their new promises, Iran still believes, nothing much is really going to change.
High tensions which still prevails in the Israel, Palestine, Jordan, and Hamas region, America’s stand on Syria’s indication that it wants no further quarrels with Washington, may take a major upturn. For Syria’s control over few if the nations in the above said region, may play a major role in restoring peace there.
But a doubts just confronts at times that, it just the fear of the super power, or really something fruitful that they see within the America’s new leader which has made them come with open arms towards the nation even before a completion of him being in office for a week. Can it be just a self-interest that they believe they can lure the new diplomat to fall into, only the time will tell?
Obama has declared to come out with a stringent plan to reverse the economic slide and to strengthen the fallen dollar. His plans mainly mentioned a $1 trillion bailout plan to help reverse the current situation.
Quoting his concern over the loss of 2.6 million jobs last year which was the highest since World War II, manufacturing which is at 28-year low. He also mentioned that is this continues then the unemployment could reach upto levels of 10% which is very high and considering 1 out of every 10 homes wouldn’t have a earning hand, he would do anything to stop that to happen.
Obama’s plans stands at injecting $1 trillion over this year which will help economy, and fulfill pledges. And also mentioned that a second plan would be suggested even before the first one is complete on the intermediate outcomes of the first and anything and everything will be done to help and retain the levels.
Four missiles were launched by unmanned aircraft which struck two places in Pakistan in the wee hours on Friday, January the 23th, 2009. These missile attacks were primarily targeted on the terrorist destinations near the Pakistan-Afghan border and Waziristan, a place in Pakistan.
3 missiles have been attacked at a single location on the Pakistan-Afghan border in village Zharki near north-Waziristan. This place is believed to be the major location for the Al-Qaeda militants including “Osama Bin Laden”. The missiles in this location destroyed 2 buildings, killing about 10 people out of which at least 5 are believed to be the foreign militants.
Hours later, another missile struck a building in the South-Waziristan, killing 8 people and completely destroying a building.
US have not yet acknowledged firing the missiles, which are believed to be fired from a location in Afghanistan under the control of the US. Although, Pakistan publicly protests against these attacks that often kills its own civilians, but secretly seems to agree with the tactics and might also have been providing information on the targets.
These missile attacks are going on since August last year and about 30 missile strikes have been reported to have attacked the similar locations in Pakistan with the primary focus on the terrorist clusters in existence there. US officials with these missile attacks have killed several top al-Qaida operatives, and is denying the terrorist network a long-held safe haven.
No one knows till when are these attacks are going to continue, and whether they will be able to restore peace in the world or will actually fan the fire which already has a lot of nations burning under it.
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