ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Changed Fortunes

Hansavivek DEMPO STEAMSHIPS is expanding its fleet. It has acquired two bulk carriers of 33,133 DWT, each, at a cost of US $ 30 million, Both the vessels are second-hand, having been built in Japan in 1978. the company has also sighed an agreement for purchase of two vessel of 27,000 DWT, each, with Hindustan Shipyard to meet pari passu obligations against the acquisition of two foreign vessels. It is also looking around for handy-sized bulk carriers and expects to acquire the balance tonnage of 80,000 DWT to complete the first phase of expansion programme. The company has obtained bridge loans in foreign exchange, aggregating US S 27 million, from SBI for payment pf 90 per cent of the cost of new acquisitions. It has applied to the government for permission to raise Euro Dollar loan of US $ 27 million to liquidate the bridge loans. With a change in the fortunes of the ship ping industry, Dempo has turned out impressive working results for 1979-80 and announced a 20 per cent dividend. Freight and charter-hire earnings have gone up from Rs 11.60 crore to Rs 19.43 crore, and have yielded a gross profit of Rs 6.70 crore against Rs 1.70 crore in the previous year. After depreciation, ther is a net profit of Rs 4.53 crore, compared to a net loss of Rs 53 lakh previously. The dividend is covered 3.87 times. The directors state that the company was victim of international fraud along with two other foreign shipowners in the non- receipt of freight of US $ 1.296,608 from the charterers, Robina Shipping, Singapore. Steps were taken by the solicitors in Bombay and London with the consignee's solicitors and an agreement was arrived at. Meanwhile, as agreed, part freight of US $ 545,fe72 has been received from the consignee. The matter of whether or not the freight is payable by the consignee will be referred to the Commercial Court, London. The company is entitled to receive unpaid freight of US S 266,330 from the consignee, in addition to demurrage/despatch settlement.

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