MIRA INFORM REPORT

 

 

Report Date :

30.10.2013

 

IDENTIFICATION DETAILS

 

Name :

PRATIBHA SHIPPING COMPANY LIMITED

 

 

Registered Office :

1201/02, Arcadia Building, 12th Floor, NCPA Road, Nariman Point, Mumbai - 400021, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

20.02.1995

 

 

Com. Reg. No.:

11-085742

 

 

Capital Investment / Paid-up Capital :

Rs.19.999 Millions

 

 

CIN No.:

[Company Identification No.]

U35110MH1995PLC085742

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Service Provider of Cargo Shipping.

 

 

No. of Employees :

Information denied by the management

 

 

RATING & COMMENTS

MIRA’s Rating :

Ca (11)

 

RATING

STATUS

PROPOSED CREDIT LINE

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

Limited with full security

 

Maximum Credit Limit :

USD 10200000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Delayed

 

 

Litigation :

Exist

 

 

Comments :

Subject is an established company having moderate track record.

 

Management has failed to file its latest financials of 2012 with the government department.

 

As per indirect sources, we found that the company is passing through financial problems. The financial position of the company has been deteriorating which has eventually resulted in stranding of all the ships operated by the company, resulting in non-payment of salaries to the crew employed by the management.

 

Business is active. Payment terms are delayed.

 

The company can be considered for business dealings on a fully secured trade terms and conditions.

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

INDIAN ECONOMIC OVERVIEW

 

India’s current account deficit or CAD in April-June widened to 4.9 % of gross domestic product. High imports of gold and oil led to a worsening of the traqde deficit, resulting in CAD jumping to $ 21.8 billion to the latest quarter from $ 16.9 billion in the corresponding quarter of the previous financial year. The government aims to bring down CAD to 3.7 % or $ 70 billion, in 2013/14, from 4.8 % or $ 88.2 billion in 2012/13.

 

The finance ministry has started preparations for Budget 2014/15. With general elections scheduled to be held by May next year, there will only be an interim budget. The new government will present the fiscal Budget.

 

The Supreme Court has barred clinical trials for new drugs till a monitoring mechanism is put in place to protect the lives of people on which the drugs are tested.

 

Mumbai has been named the world’s second most honest city according to a survey on 15 cities worldwide by Readers’ Digest magazine. Finnish capital Helsinki bagged the top spot for the world’s most honest city while Lisbon, the capital of Portugal, proved to be the least honest.  The survey put hundreds of people to test in four continents to find out just how honest they were by dropping wallets and seeing how many would be returned.

 

3.7 % Growth of the core sector in August, a seven month high. This takes the overall growth in April-August this year to 2.3 % compared with 6.3 % in the corresponding period next financial year.

 

$19 million Estimated average spending by companies across the globe including India, on social media this year, according to a global study by information technology major Tata Consultancy Services. This will rise to $ 24 million in 2015.

 

Rising inflation, fewer employment avenues and dwindling earnings are taking a toll on the spending capacity in India. Over 72 % respondents from middle and lower middle income families would be forced to slash their Diwali expenditure by 40 % and on average spend nearly 25 % of their monthly salary on Diwali, according to a survey by Assochem.

 

Analysts believe the shutdown of the US government would have limited impact in sectors such as IT or tourism that are dependent on Visa clearances.

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

FITCH

Rating

BBB- (Long Term Rating)

Rating Explanation

This rating indicate that expectations of default risk are currently low. The capacity for payment of financial commitments is considered adequate.

Date

October 2011 – March 2012

 

 

RBI DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

 

 

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

 

 

INFORMATION DENIED

 

Management Non Co-Operative (91-22-22886002)

 

 

LOCATIONS

 

Registered Office :

1201/02, Arcadia Building, 12th Floor, NCPA Road, Nariman Point, Mumbai - 400021, Maharashtra, India

Tel. No.:

91-22-22886002 / 3 / 4 / 22822224 / 5

Fax No.:

91-22-22886001

E-Mail :

pscl@pscl.org

corporate@pscl.org

accounts@pscl.org

chartering@pcls.org

operation@pscl.org 

technical@pscl.org

purchase@pscl.org

vetting@pscl.org

personnel@pscl.org

snp@pscl.org

projects@pscl.org

supprt@pscl.org

cs@pscl.org

Website :

http://www.pscl.org

 

 

DIRECTORS

 

As on: 30.08.2011

 

Name :

Mr. Sunil Anandrao Pawar

Designation :

Managing Director

Address :

501, Laxmi Gopal Co-operative Housing Society, Hatiskar Marg, Prabhadevi, Mumbai-400025, Maharashtra, India

Date of Birth/Age :

28.05.1963

Qualification :

Marine Engineer

Date of Appointment :

11.07.2007

PAN No.:

AADPP7738D

DIN No.:

01195242

Profile :

Mr. Sunil A Pawar is Director of the Company from incorporation of the Company i.e.20.02.1995. Mr. Sunil A Pawar was appointed as Chairman of the Company w.e.f.16.12.2002.Further, Mr. Sunil A Pawar was also appointed as Managing Director of the Company w.e.f.18.12.2002 by the members of Company at their Extra-ordinary General Meeting held on December 18, 2002 and subsequently he was re-appointed as Managing Director of the Company in the Annual General Meeting held on 24th August 2007 for a period of five years w.e.f. 11th July 2007.

 

 

Name :

Mr. Madan Anandrao Pawar

Designation :

Whole Time Director

Address :

At post Pawarwad, Phaltan, Satara - 415001, Maharashtra, India

Date of Birth/Age :

10.02.1957

Qualification :

F.Y. BA

Date of Appointment :

21.11.2008

PAN No.:

APNPP9535K

DIN No.:

02313436

 

 

Name :

Mr. Suhas Anandrao Pawar

Designation :

Director

Address :

1194/24, Chintamani Apartments, Ghole Road, Shivajinagar, Pune - 411005, Maharashtra, India

Date of Birth/Age :

10.05.1961

Qualification :

HSC

Date of Appointment :

12.02.2009

PAN No.:

ASOPP2999P

DIN No.:

02479867

 

 

Name :

Mr. Suresh Anandrao Pawar

Designation :

Whole Time Director

Address :

1, Chintamani Apartments, Ghole Road, Shivajinagar, Pune - 411005, Maharashtra, India

Date of Birth/Age :

17.08.1959

Qualification :

B.Com.

Date of Appointment :

26.08.2010

PAN No.:

AEDPP2194R

DIN No.:

01752226

 

 

KEY EXECUTIVES

 

Name :

Mr. Vitthal Maruti Chavan

Designation :

Company Secretary

Address :

304, C Wing, Shivshakti Apartment, Above Sahakari Bhandar, Agar Bazar, Dadar (West) Mumbai - 400028, Maharashtra, India

Date of Birth/Age :

20.08.1984

Date of Appointment :

16.07.2010

PAN No. :

AHVPC3216G

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on: 30.08.2011

 

Names of Shareholders

 

No. of Shares

Pratibha Madan Pawar

 

1

Sunil Anandrao Pawar

 

1099944

Suresh Anandrao Pawar

 

499974

Madan Anandrao Pawar

 

299984

Suhas Anandrao Pawar

 

99995

Nilkanth Balkrishna Vidwans

 

1

Sachin Keshav Chavan

 

1

 

 

 

Total

 

1999900

 

Equity Share Break up (Percentage of Total Equity)

 

As on: 30.08.2011

 

Category

 

Percentage

 

 

 

Directors or relatives of directors

 

100.00

Total

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Service Provider of Cargo Shipping.

 

 

GENERAL INFORMATION

 

Customers :

In the Indian Market

·         Indian Oil Corporation

·         Bharat Petroleum Corporation Limited

·         Hindustan Petroleum Corporation Limited

·         Mangalore Refinery and Petrochemicals Limited

·         Haldia Petrochemicals Limited

·         Reliance Industries Limited

·         ESSAR Oil Limited

 

In the World Market

·         VITOL Energy

·         Iran Petrochemical Commercial Company, Tehran

·         Winsway International Petroleum and Chemicals Limited

·         Glencore - Crude Oil and Oil Products

·         Abu Dhabi National Oil Company

·         Chemoil

·         Hinchest Energy Pte. Limited, Singapore

·         Galana Petroleum

·         Shell global

·         State Trading Corporation – Mauritius

·         Petrosummit

·         Mansel Oil Limited, Bermuda

 

 

No. of Employees :

Information denied by the management

 

 

Bankers :

·         Bank of India, Mid Corporate Branch, Bank of India Building, Mezzanine Floor, 70-80, Mahatma Gandhi Road, Fort, Mumbai - 400001, Maharashtra, India

·         Corporation Bank, Overseas Branch, I Floor, Earnest House, NCPA Marg, Nariman Point, Mumbai – 400 021, Maharashtra, India

 

·         The Saraswat Co-operative Bank Limited, 1st Floor, A Wing, Mittal Court, Mumbai – 400 021, Maharashtra, India

 

·         The Cosmos Co-Operative Bank Limited, Neelkanth Society, 32/34, D L Vaidya Road, Dadar (West), Mumbai- 400028, Maharashtra, India 

·         State Bank of India

·         State Bank of Hyderabad

·         Axis Bank Limited, 209, Atlanta, Ground Floor, Nariman Point,, Mumbai - 400021, Maharashtra, India

·         The Cosmos Co-Operative Bank Limited

·         Yes Bank Limited

 

 

Facilities :

(Rs. In Millions)

Secured Loan

As on

31.03.2011

As on

31.03.2010

Rupee term loans banks secured

(A) 2625.176

2741.911

Interest accrued due other debt secured

(B) 2.482

6.075

 

 

 

Total

2627.658

2747.986

 

Note:

(A) (Secured by mortgage of a specific ships and lien of Fixed Deposit)

(B) Interest Accrued and due on term loans

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

L V Srinivasan and Associates

Chartered Accountants

Address :

Building No. 38 Flat No. 106, Kripanilaya Co-Operative Society Limited, Tilak Nagar , Chembur, Mumbai – 400089, Maharashtra, India 

PAN No.:

AAOPS6603F

 

 

Fellow Subsidiary Company :

·         Pratibha Logistics (S) Pte. Limited

 

 

Subsidiary Company :

·         Pratibha Marine Private Limited

CIN No.: U35110MH1996PTC099344

 

·         Pratibha Logistics Private Limited

CIN No.: U63013MH2007PTC171848

 

·         Pratibha Offshore Private Limited

CIN No.: U61200MH2008PTC182874

 

·         Pratibha Oil and Natural Gas Private Limited

CIN No.: U11102MH2008PTC183901

 

·         Chandrabhaga Sugar Private Limited

CIN No.: U15425MH2008PTC183032

 

 

CAPITAL STRUCTURE

 

As on: 31.03.2011

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

25000000

Equity Shares

Rs.10/- each

Rs.250.000 millions

 

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

1999900

Equity Shares

Rs.10/- each

Rs.19.999 millions

 

 

 

 

 


 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2011

31.03.2010

31.03.2009

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

19.999

19.999

19.999

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

2550.542

2519.615

1969.493

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

2570.541

2539.614

1989.492

LOAN FUNDS

 

 

 

1] Secured Loans

2627.658

2747.986

3071.910

2] Unsecured Loans

0.000

0.000

0.000

TOTAL BORROWING

2627.658

2747.986

3071.910

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

5198.199

5287.600

5061.402

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

4652.366

4320.885

4677.300

Capital work-in-progress

0.000

100.576

0.000

 

 

 

 

INVESTMENT

174.944

174.944

174.924

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

99.746
40.807

68.406

 

Sundry Debtors

164.869
158.584

234.023

 

Cash & Bank Balances

164.203
283.066

217.480

 

Other Current Assets

7.298
6.564

11.716

 

Loans & Advances

768.989
627.602

442.185

Total Current Assets

1205.105
1116.623

973.810

Less : CURRENT LIABILITIES & PROVISIONS

 
 

 

 

Sundry Creditors

616.607
219.350

450.550

 

Other Current Liabilities

192.349
193.229

305.080

 

Provisions

25.260
12.849

9.002

Total Current Liabilities

834.216
425.428

764.632

Net Current Assets

370.889
691.195

209.178

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

5198.199

5287.600

5061.402

 

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

 

31.03.2011

 

SALES

 

 

 

 

 

Income

 

 

1911.077

 

 

Other Income

 

 

26.304

 

 

TOTAL                                     (A)

 

 

1937.381

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Consumption materials changes inventories

 

 

104.968

 

 

Manufacturing service costs

 

 

611.479

 

 

Contract cost

 

 

29.838

 

 

Employee related expenses

 

 

298.803

 

 

Administrative selling other expenses

 

 

90.676

 

 

TOTAL                                     (B)

 

 

1135.764

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

 

 

801.617

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

 

 

216.256

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

 

 

585.361

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

 

 

529.175

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

 

 

56.186

 

 

 

 

 

Less

TAX                                                                  (H)

 

 

20.580

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

 

 

35.606

 

 

 

 

 

Less

TRANSFERRED TO TONNAGE TAX RESERVE

 

 

11.200

 

 

 

 

 

 

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

 

 

1636.700

 

 

 

 

 

 

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

 

 

3.500

 

 

Proposed Dividend

 

 

4.000

 

 

Tax on Proposed Dividend

 

 

0.700

 

BALANCE CARRIED TO THE B/S

 

 

1652.800

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

 

 

320.200

 

TOTAL EARNINGS

 

 

320.200

 

 

 

 

 

 

Earnings Per Share (Rs.)

 

 

17.80

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2010

31.03.2009

 

SALES

 

 

 

 

 

Income from Operations

 

2949.436

2829.876

 

 

Other Income

 

50.836

21.988

 

 

Profit on Sale of Assets

 

0.000

0.000

 

 

TOTAL                                     (A)

 

3000.272

2851.864

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Operating Expenses

 

1261.543

1173.905

 

 

Administrative and Other Expenses

 

132.618

129.804

 

 

Drydock Expenses

 

254.799

0.000

 

 

TOTAL                                     (B)

 

1648.960

1303.709

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

 

1351.312

1548.155

 

 

 

 

 

Less

INTEREST ON TERM LOANS                            (D)

 

278.645

308.605

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

 

1072.667

1239.550

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

 

519.694

472.792

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

 

552.973

766.758

 

 

 

 

 

Less

TAX                                                                  (H)

 

8.169

4.323

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

 

544.804

762.435

 

 

 

 

 

Add

PRIOR PERIOD ADJUSTMENT

 

9.998

0.000

 

 

 

 

 

Less

TRANSFERRED TO TONNAGE TAX RESERVE

 

110.594

153.351

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

 

1251.641

723.480

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

 

54.480

76.243

 

 

Proposed Dividend on Equity Shares

 

4.000

4.000

 

 

Tax on Dividend

 

0.680

0.680

 

BALANCE CARRIED TO THE B/S

 

1636.689

1251.641

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

723.500

750.900

 

 

 

 

 

 

Earnings Per Share (Rs.)

 

272.42

381.24

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2011

31.03.2010

31.03.2009

PAT / Total Income

(%)

1.84
18.16

26.73

 

 

 
 

 

Net Profit Margin

(PBT/Sales)

(%)

2.94
18.75

27.10

 

 

 
 

 

Return on Total Assets

(PBT/Total Assets}

(%)

0.96
10.17

13.57

 

 

 
 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.02
0.22

0.39

 

 

 
 

 

Debt Equity Ratio

(Total Debt/Networth)

 

1.02
1.08

1.54

 

 

 
 

 

Current Ratio

(Current Asset/Current Liability)

 

1.44
2.62

1.27

 

 

LOCAL AGENCY FURTHER INFORMATION

 

CURRENT MATURITIES OF LONG-TERM DEBT DETAILS – NOT AVAILABLE

 

Sr. No.

Check List by Info Agents

Available in Report (Yes / No)

1]

Year of Establishment

Yes

2]

Locality of the firm

Yes

3]

Constitutions of the firm

Yes

4]

Premises details

No

5]

Type of Business

Yes

6]

Line of Business

Yes

7]

Promoter's background

Yes

8]

No. of employees

No

9]

Name of person contacted

No

10]

Designation of contact person            

No

11]

Turnover of firm for last three years

Yes

12]

Profitability for last three years

Yes

13]

Reasons for variation <> 20%

--

14]

Estimation for coming financial year

No

15]

Capital in the business

Yes

16]

Details of sister concerns

Yes

17]

Major suppliers

No

18]

Major customers

Yes

19]

Payments terms

No

20]

Export / Import details (if applicable)

No

21]

Market information

--

22]

Litigations that the firm / promoter involved in

Yes

23]

Banking Details

Yes

24]

Banking facility details

Yes

25]

Conduct of the banking account

--

26]

Buyer visit details

--

27]

Financials, if provided

Yes

28]

Incorporation details, if applicable

Yes

29]

Last accounts filed at ROC

No

30]

Major Shareholders, if available

Yes

31]

Date of Birth of Proprietor/Partner/Director, if available

Yes

32]

PAN of Proprietor/Partner/Director, if available

Yes

33]

Voter ID No of Proprietor/Partner/Director, if available

No

34]

External Agency Rating, if available

Yes

 

 

LITIGATION DETAILS

                                                                     Bench:- Bombay

 

Lodging No:-

CPL/703/2013

Failing Date:-

10/10/2013

 

Petitioner:-

MARS PETROCHEM PVT LTD

Respondent:-

PRATIBHA SHIPPING COMPANY LTD

Petn.Adv:-

MR. SAHIL MAHAJAN

District:-

MUMBAI

 

Bench:-

SINGLE

Category:-

COMPANY PETITION U/SEC 433,434,439 COMPANIES ACT

Status:-

Pre-Admission

Stage:-

 

Last Date:-

17/10/2013

 

Last Coram:-

REGISTRAR(OS)/ PROTHONOTARY AND SR. MASTER

 

 

Act:-

Companies Act & Rules 1956

Under Section :-

433 434

NOTE

 

The Registered Office of the company has been shifted from Nariman Point, Mumbai – 400 021, Maharashtra, India to the present address w.e.f. 28.08.2006.

 

 

FINANCIAL PERFORMANCE:

 

In the financial year ended March 31, 2011, the Company recorded a total income of Rs. 1937.300 Millions (Previous year Rs. 3000.200 Millions) and profit before tax of Rs. 56.100 Millions (Previous year Rs. 552.900 Millions). The profit after tax of the Company during the year was Rs. 35.600 Millions against Rs.5548 Millions for the previous year.

 

The prevalent sluggish international and domestic freight market has impacted the revenue and profitability of the Company. Further, due to drop in freight market internationally, local oil companies in comparison to same have sought considerable reduction on domestic/costal charter rates. The newly acquired vessel, MT Pratibha Bheema has undergone major repairs immediately after her acquisition; therefore MT Pratibha Bheema was not in operation in most part of the financial year 2010-11. The Directors believe that freight market will revive by end of this year and the Company will maintain the path of progress in the coming years.

 

 

INDUSTRY OUTLOOK

 

The shipping is a global industry and its prospects are closely tied to the level of economic activity in the world. The shipping market is cyclical in nature. Freight rates and earnings of the shipping companies are primarily a function of demand and supply in the markets. While demand drivers are a function of trade growth and geographical balance of trade, the supply drivers are a function of new ship building orders as well as scrapping of existing tonnage. Due to depressed market, the new delivery schedules of many vessels are delayed or cancelled. A little boost to the economy will push up demand for the tonnage and there will be recovery in the freight market. The Directors believe that freight market will revive by end of this year.

 

 

CONTINGENT LIABILITIES

 

Guarantees given by Banks, counter guaranteed by the Company aggregating to Rs.1.254 Millions (Previous Year Rs. 1.212 Millions)

 

Guarantees of Rs. 990.000 Millions (Previous Year Rs. 790.000 Millions) given to Banks by the Company for securing loan availed by M/s. Pratibha Logistics Private Limited a wholly owned subsidiary of the Company.

 

Municipal Property Tax liability Rs. 12.148 Millions in respect of office premise as per the provisional invoices issued by the Society, however the matter is sub judice with Mumbai high court

 

 

AS PER WEBSITE DETAILS

 

News

 

TWO DIRECTORS OF PRATIBHA SHIPPING FIRM HELD IN PUNE

 

March 7, 2013

 

A city police team arrested two directors of Mumbai-based Pratibha Shipping Company Limited, which owns the ill-fated MT Pratibha Cauvery vessel.

 

The ship was grounded off Elliots Beach here last October after it was caught in cyclone Nilam.

 

Six crew members who attempted to escape from the ship drowned.

 

Police sources said Madan Anand Rao Pawar (55) and Suresh Anand Rao Pawar (53), both residents of Shivaji Nagar in Pune, were arrested in Pune on Tuesday on charges of negligence, causing the death of the sailors.

 

Shastri Nagar police registered case under Section 174 (Police to inquire and report on suicide, etc) of CrPC, which was altered to Section 304 (ii) (culpable homicide not amounting to murder) of IPC and started a probe.

 

ROUGH SEA

 

The incident took place on October 31, 2012 when the rough sea and gusty winds due to the cyclone, made the ship run adrift even though its captain tried to take the vessel out to the deep sea.

 

Out of the 37 crew on board, 25 members tried to escape the rough seas on rescue boats.

 

While three abandoned the efforts and went back to the ship, 17 were rescued by fishermen, but one succumbed on the way to a city hospital. Five others who went missing in the sea drowned and their bodies were washed ashore.

 

On November 26, 2012, two employees of Sea World Shipping and Logistics Private Limited, the agency who dealt with the vessel, were arrested for failing to provide necessary assistance to the sailors who were stranded in the ship without supplies for over two weeks before the cyclone.

 

 

PRATIBHA SHIPPING, AN ALBATROSS AROUND MARINE DEPT’S NECK

 

March 24, 2013: 

 

Gautam Chatterjee has two major tasks to complete before the onset of monsoon. The building that houses his office — headquarters of the country’s maritime administration — has been declared unsafe. He has to find another place in Mumbai city to accommodate around 200 people in the next two months.

 

Second, he will have to find a way out to remove five oil tankers held up for more than three months off the country’s coasts, both east and west. These ships, virtually abandoned by their bankrupt owners, could drift and potentially cause a disaster during heavy rain and bad weather.

 

GOING GETS TOUGH

 

As for the first challenge, Chatterjee, Director General of Shipping, appears to be half way through — he has short-listed a few premises. The problem is that he can pay only Government approved rent, which is much lower than the inflated rates of the city’s real estate lobby. But he is confident of shifting the office before the rains hit Mumbai.

 

The second challenge is tougher. The oil tankers, anchored 10-20 nautical miles off the coast of Mumbai, Goa, Chennai and Vizag, are owned by the Mumbai-based Pratibha Shipping. These vessels cannot sail as they lost their insurance cover and statutory licences, including seaworthiness certificate, as their owner failed to honour his financial and other commitments.

 

Some aggrieved parties have got court orders to arrest two of the vessels, but it may take time to sell or auction them. Apart from these five, the company has four more vessels. One of the tankers, MV Pratibha Cauvery, was in the news following the death of six sailors, who jumped out of the vessel when it was hit by cyclone off Tamil Nadu coast last October, and the subsequent arrest of two of the company’s directors earlier this month. The Cauvery is now berthed at Chennai port.

 

Of the other three tankers, two are at a Chinese yard and the third at a dry dock in Bahrain. The Chinese shipyard refused to allow these vessels to sail out until the repair dues were settled by the company.

 

Pratibha Shipping, owned by A.N. Pawar and family, has been in financial trouble for quite sometime now. The company has not been paying salaries regularly for more than a year. But no one shed a tear till the company’s vessels were held up, as shipping industry has been facing prolonged recession.

 

HUGE DEBT

 

It is understandable for a company in financial trouble to borrow as much as possible. But the case of Pratibha is unbelievable. A Mercantile Marine Department official said in the case of some ships, the company had borrowed several times the value of the ships, most of which are over 30 years old. It is learnt that against one or more ships, the company borrowed as much as Rs 1000.000 Millions, although the value could be a fourth of that. How the lenders agreed to such a high leverage is anybody’s guess.

 

Details of the bank loans could not be obtained. However, it is learnt that co-operative banks have the maximum exposure to Pratibha Shipping.

 

As on March 2011, the company had outstanding term loans of over Rs.2700.000 Millions from banks such as Cosmos Co-operative Bank, Saraswat Bank, Axis Bank, State Bank of India and Corporation Bank, according to data available with a rating agency, which had suspended its rating recently.

 

Pratibha’s Chairman and Managing Director Sunil Pawar still thinks he can revive the company if he gets support from the Government and oil companies.

 

“Several families depend on us, we cannot let them down. But we are not getting any support from the oil companies. In other countries, Government supports shipping lines in trouble, here we don’t have anything like that,” said Pawar.

 

PREPARING FOR EMERGENCY

 

For Chatterjee, who took over as head of maritime administration in mid-October, Pratibha was one of the first major cases to deal with. In January, when he was told that the company’s entire fleet of nine tankers was stranded in India and abroad, the priority was to bring the crew back home safely. The crew on the ship that was in the Chinese yard reportedly had a harrowing time with cold weather and poor supply of provisions on board. Getting them back to India was a Herculean task, said an official of National Union of Seafarers of India, which took the lead in rescuing the stranded seamen.

 

With the support of seafarers’ union, Chatterjee won the first round of the battle, though he had to spend many a sleepless night. The second round is to remove the ships before the monsoon. The memories of the scare that the abandoned ships MV Wisdom and MV Pavit created when they ran aground Mumbai’s Juhu beach in 2011, still haunts the Mercantile Marine Department (MMD).

 

If the stranded Pratibha ships are left unattended, they will be a threat to coastal safety and headache to the maritime administrator. Chatterjee is trying to persuade the owners to move out the ships. But it may not be easy. On Friday, he summoned them to ascertain their plans. Apparently, they have promised to come out with a concrete plan next week.

 

Another worry for him is that MMD is not fully equipped to handle a disaster. It did not even have an emergency towing vessel. The Shipping Ministry is understood to have sanctioned two such vessels, but the department is yet to get the funds.

 

Despite all the limitations, Chatterjee is confident that he would be able to accomplish his tasks before the monsoon.

 

 

I SURVIVED ON ROTTEN FOOD FOR WEEKS ON STRANDED SHIP

 

January 03, 2013

 

Pune: 30-year-old son returned home after being stuck on a stranded vessel for over two testing months. Mangesh Palkar worked as a second engineer on the Pratibha Indrayani ship that had to anchor in the Arabian Sea, barely 35 nautical miles from Mumbai.

Palkar and one of his colleagues were relieved following their medical condition. According to Palkar, the vessel was asked to anchor because the company - Pratibha Shipping Company - had violated the Det Norske Veritas rule. Narrating the ordeal, he said, "We were returning from Mundra in Gujarat. On October 29 we reached near Mumbai, but were not allowed to sail any further. We were clueless about the restriction, and soon a month had passed. We were later informed that the ship was arrested."

 

He added that a sense of fear prevailed on board, and everyone was scared with no sign of their return back to the shore. "I survived on rotten food, as the perishable and frozen food had started decaying. I and my other colleagues had lost our sleep and had become weak due to lack of proper food and water. Besides, the fuel stock too was getting over, and there was a fear of a blackout," said.

 

Palkar was overjoyed when he saw a Tuck boat coming towards the ship. "I somehow knew that soon I'd be out of here. The boat brought us to the coast on December 31, and I am glad to be with my loved ones in the New Year," he exclaimed. Palkar, who was hired by the company in June last year on a four-month contract, alleged that despite going through all the suffering, the company didn't even pay him his salary.

 

"The reason that was given to me was that the company is suffering losses." Palkar said the condition of 33 other employees, who are still stranded on the ship, was no different. Palkar's mother Madhumati said that the family had been calling the shipping company every single day to enquire about Palkar's well being, and had even travelled to Mumbai to meet the owners, but to no avail.

 

"There was no money left with Mangesh, and we had to top-up his phone so that we could be in touch with him," she said.  Despite repeated attempts, Sunil Pawar, owner of Pratibha Shipping Company, remained unavailable for comments.

 

 

DGS, UNION, SHIP OWNER MEET TO RESOLVE PRATIBHA SHIPPING ISSUE

 

Monday, January 07, 2013

 

Non- payment of wages and repatriation of seafarers of Pratibha Shipping a priority

 

A high level meeting under the Chairmanship of

 

Mr. Gautam Chatterjee, Director General of Shipping was convened to discuss regarding the issue of ships owned by Pratibha Shipping. Mr. Sunil Pawar, Managing Director and his team from Pratibha Shipping and other stakeholders from Maritime Administration, officials from Port authorities, Immigration, Senior Police Officials from Yellow Gate Police Station and representatives from the Department of Indian Coast Guard were present in the meeting.

 

“NUSI and MUI strongly indicated that our prime concern is the safety and repatriation of all the seafarers. The entire balance of wages for the pending months should be received by the seafarers which is due from Pratibha Shipping”, NUSI related stated.

 

“As responsible unions and for the well being of seafarers, it was also stressed by NUSI and MUI that together we will financially assist in the repatriation of seafarers and in supply of good quality provisions onboard”, the release futher stated.

 

“All this is the responsibility of Pratibha Shipping and since they are not able to fulfill the same, it was appreciated that NUSI and MUI have agreed to provide assistance to seafarers of Pratibha Shipping. The remaining five ships have been dealt on priority. It was also discussed that since Pratibha Shipping is a memberline of Indian National Shipowners Association (INSA), it is necessary that INSA should also provide assistance by bearing the bunker charges”, the release added.

 

 Seafarers were represented by Mr. S.S. Khan, General Secretary, Mr. Sudhakar Dhuri, Asst. Secretary and Capt. D.H. Sawant, Advisor from the Maritime Union of India (MUI) and Mr. Abdulgani Y. Serang, General Secretary-cum-Treasurer, Mr. Maruti D. Rethrekar, Vice President and Mr. Shantaram Dhamapurkar, Organising Secretary from National Union of Seafarers of India (NUSI).

 

In a detailed release the Directorate General of Shipping has highlighted the issues faced by Pratibha Shipping Company Limited, Mumbai, its stranded crew members and actions being taken.

 

Pratibha Shipping Company Limited, Mumbai is incorporated under the provisions of Indian Company Act, 1956. This company is owning and managing 9 oil tankers which are registered by the Principal Officer, Mercantile Marine Department, Mumbai. These vessels are manned by Indian Crew as per the safe manning level prescribed by the Directorate General of Shipping, Mumbai. Reportedly, all these vessels are trading on the Coast of India engaged in the carriage of oil in bulk as cargo.

 

For the past couple of months, the financial position of the company has been deteriorating which has eventually resulted in the stranding of all the 9 ships presently reported to be either in ports or at anchorage or at the shipyards in Indian waters and overseas. All vessels’ statutory and mandatory certificates have expired.

 

The present poor financial health of the company has resulted in creating hardships for the crew on board these ships. The crew has been engaged by the ship owner under the provision of the Merchant Shipping Act, 1958 and the applicable Collective Bargaining Agreement (CBA) with the recognized Unions by the ship owner. The crew of these vessels has requested the owners to repatriate them to their hometown as their contractual agreement with the owners in most of the cases have come to an end or repatriation long is overdue. The owners also have failed to settle the account of wages of the crew as required by the applicable contract of employment and the applicable CBA.

 

Out of 9 ships which the company owns, 3 of them are overseas in the shipyards undergoing dry-dock repairs or completed such repairs. Remaining 6 ships are presently in Indian Waters awaiting instructions from the owners for commercial operations or decommissioning.

 

Considering the fact and the circumstance, the Directorate General of Shipping and its allied offices extended all possible assistance to the stranded crew in Indian waters and Overseas. A brief list is as under;

 

Motor Tanker (M.T.) Pratibha Koyna is at Bahrain, entire 34 crew was repatriated by Indian Mission at Government of India’s cost which is to be recovered from the ship owner. The vessel is under arrest for non-payment of dues.

 

M.T. Pratibha Chandrabhaga/ Narmada- These vessels are stranded in Chinese shipyard, the Directorate has requested the Indian mission to invoke section 161 of Merchant Shipping Act, 1958 for early repatriation of 13 trainee crew on board. Because of strict Chinese Regulations and non-payment of dues by the owner to the shipyard, the process of repatriation is getting delayed.

 

M.T. Pratibha Cauvery – after its refloatation at Chennai was directed by D.G. Shipping under the provision of section 411 of the Merchant Shipping Act, 1958, to berth in Chennai Port to carry-out temporary repairs for 2 days. The vessel is still in Chennai Port occupying a commercial berth without paying its port dues to the Port.

 

M.T. Pratibha Tapi/ Indrayani – the D.G. Shipping and Coast Guard have intervened in providing medical assistance to the ailing crew on board on account of food poisoning. These two vessels are anchored about 30 Nautical miles off Mumbai.

 

M.T. Pratibha Bheema - the D.G. Shipping and Coast Guard has intervened and provided medical assistance to the 2nd Engineer who has been repatriated to his home town in Kerala on medical grounds. This vessel is anchored off Goa Port.

 

M.T. Pratibha Warna - the D.G. Shipping has requested owner to disembark the master on compensate ground. The vessel is anchored off Chennai Port.

 

In view of the continuing deteriorating conditions of all vessels, inhabitable conditions on board, non-payment of wages to the crew, delay in repatriation, arrest of few vessels for non-payment of dues, enforcement of Maritime Lien by the creditors and poor physical and mental health of crew on board etc., the Director General of Shipping convened an emergency meeting with all the stakeholders today (i.e. 03/01/2013). The stakeholders includes the ship owner, the Indian Coast Guard, concerned Port, seafarers Unions, Ship Owner’s Association, Local Police , registrar of its ships etc., to take stock of the situation and find amicable solution to this problem. A brief of the outcome of the meeting is given below;

 

The owners confirmed repatriation of 17 crew of M.T. P. Chandrabhaga/ Narmada from China within 7 days. Skelton crew as per DGS minimum manning scale shall be placed on board these two ships by NUSI (seafarers union) and owners. The cost of repatriation and placement of the crew shall be borne by the NUSI. Supplies for the crew shall be made by the owners. Both vessels are being sold by the owner.

 

Owners have confirmed repatriation of entire 50 crew of M.T. P. Tapi / Indrayani from Mumbai anchorage latest by 05/01/2013. Skelton crew as per DGS minimum manning scale shall be placed on board these two ships by NUSI and owners. The logistic support shall be given by the owners for repatriation and placement of the crew. Supplies for the crew shall be made by the NUSI. M.T. P. Tapi is going for scrap whereas M.T.P. Indrayani is awaiting lifting of arrest order.

 

Owners have confirmed repatriation of entire 27 crew of M.T. P. Warna from Chennai anchorage latest by 10/01/2013. Skelton crew as per DGS minimum manning scale shall be placed on board this ship by the owners. The logistic support shall be given by the owners for repatriation and placement of the crew. Supplies including bunkers for the crew shall be made by the owners. The vessel is being sent for scrapping.

 

Owners have confirmed repatriation of entire 57 crew of M.T. P. Neera/Bhema from Vishakhapatnam /Goa anchorages latest by 10/01/2013 respectively. Skelton crew as per DGS minimum manning scale shall be placed on board these two ships by the owners either from existing crew or shall send a substitute as the case may be. The logistic support shall be given by the owners for their repatriation and placement of substituted crew. Supplies for the crew shall be made by the owner. After renewal of ship’s statutory certification, the owners proposes to reactivate the commercial operations of these two ships.

 

Owners propose to scrap M.T. P. Cauvery which is at present lying alongside berth of Chennai Port after completion of execution of Madras High court orders.

 

The owners propose to settle the outstanding wages of the crew through the sale proceeds of the vessels being scarped.

 

As per the request of the owners representative, Shri Sunil Pawar, Managing Director of the company, the seafarers’ union NUSI (for crew) and MUI (for officers) have come forward to assist the owners for next 30 days as an interim arrangement. The expenditure incurred by the unions shall be reimbersued to the unions by the ship owner through the sale proceeds of the vessels being scrapped.

 

The Directorate is closely monitoring the situation through the DG CommCentre, Indian Missions overseas and Indian Coast Guard including Local Administrations as the case may be. A review meeting on the execution of action plan given by the owner is being convened by the Director General of shipping early next week.


CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                              None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                          None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                          None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 


 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.46

UK Pound

1

Rs.98.99

Euro

1

Rs.84.72

 

 

INFORMATION DETAILS

 

Information Gathered by :

SVA

 

 

Report Prepared by :

VRN

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

2

PAID-UP CAPITAL

1~10

2

OPERATING SCALE

1~10

1

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

1

--PROFITABILIRY

1~10

1

--LIQUIDITY

1~10

1

--LEVERAGE

1~10

1

--RESERVES

1~10

1

--CREDIT LINES

1~10

1

--MARGINS

-5~5

-

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

YES

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

NO

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

 

 

 

TOTAL

 

11

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 


 

RATING EXPLANATIONS

 

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

                                       New Business

 

--

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.