MIRA INFORM REPORT
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Report Date : |
30.01.2007 |
IDENTIFICATION DETAILS
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Name : |
CHOWGULE & COMPANY LIMITED |
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Registered Office : |
Chowgule House, Mormugao Harbour, Goa
403 803, INDIA |
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Country
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India |
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Financials
(as on) : |
31.03.2006 |
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Date of Incorporation : |
24.06.1965 |
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Com. Reg. No.: |
24-41 |
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CIN
No.: [Company
Identification No.] |
U63031GA1965PTC000041 |
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Legal Form : |
Closely held public limited liability company |
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Line of Business : |
Mining,
Beneficiation and Export of Iron Ore, Shipbuilding and Manufacture of
Industrial Salt |
RATING
& COMMENTS
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MIRAs Rating : |
A |
RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
EUR 9000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a part of Chowgule Group,
a well known industrial house of Goa.
Available information indicates high financial responsibility of the
company. Trade relations are
fair. Financial position is good. Payments are correct and as per
commitments. The company can be considered good
for any normal business dealings at usual trade terms and conditions. It can be regarded
as a promising business partner in medium to long run. |
LOCATIONS
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Registered / Corporate Office : |
Chowgule House, Mormugao Harbour, Goa
403 803, INDIA |
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Tel. No.: |
91-832-2521010 / 2521034 / 2513261 /
2513262 / 2513263 / 2513831 / 2513857 / 2306524 |
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Fax No.: |
91-832-2521011 / 2521012 / 2513818 /
2306531 |
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E-Mail : |
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Website : |
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Area
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Owned |
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Factory : |
Shipbuilding
Division
Near Borim Bridge, Loutulim, Goa
403 718, INDIA Beneficiation Plants
Located at Costi Mines, Sirigao Mines
and Tudou Mines Central Workshop
Located at
Khandepur |
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Tel. No.: |
91-832-777010 / 777343 |
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Fax No.: |
91-832-777046 |
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E-Mail : |
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Website : |
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Branches : |
Located at Mumbai,
New Delhi and Bangalore |
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Mines Central Office / Central
Workshop : |
Khandepar Ponda Goa
403401 |
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Tel. No.: |
91-832-2345364 |
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Fax No.: |
91-832-2344390 |
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E-Mail : |
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Website : |
DIRECTORS
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Name : |
Mr. V. D. Chowgule |
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Designation : |
Director |
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Address : |
Chowgule
Bunglow, House No 189-A, Baina, Vasco-Da-Gama, South Goa , Goa 403802 |
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Date of Birth : |
25.08.1915 |
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Date of Appointment : |
24.06.1965 |
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Name : |
Mr. Y. D. Chowgule |
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Designation : |
Director |
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Address : |
Chowgule
Bunglow, Chicalim, Vasco-Da-Gama, South Goa , Goa 403802 |
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Date of Birth : |
11.12.1920 |
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Date of Appointment : |
24.06.1965 |
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Name : |
Mr. Vijay V. Chowgule |
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Designation : |
Managing
Director |
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Address : |
Chowgule
Bunglow, House No 189-A, Baina, Vasco-Da-Gama, South Goa , Goa 403802 |
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Date of Birth : |
22.08.1946 |
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Date of Appointment : |
16.08.1974 |
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Name : |
Mr. Ramesh L. Chowgule |
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Designation : |
Managing
Director |
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Address : |
House No
678, La Citadel Colony, Caranzale Dona Paula, North Goa, Goa 403004 |
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Date of Birth : |
08.06.1942 |
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Date of Appointment : |
01.12.1972 |
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Name : |
Mr. Ashok V. Chowgule |
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Designation : |
Director |
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Address : |
Chowgule
Bunglow, House No 189-A, Baina, Vasco-Da-Gama, South Goa , Goa 403802 |
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Date of Birth : |
25.01.1948 |
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Date of Appointment : |
16.08.1974 |
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Name : |
Mr. Suresh N. Talwar |
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Designation : |
Director |
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Address : |
10,
Shivshanti Bhuvan, 146 Maharshi Karve Road, Churchgate Reclamation, Mumbai
400020, Maharashtra |
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Date of Birth : |
21.11.1937 |
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Date of Appointment : |
27.03.1992 |
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Name : |
Mr. Pradeep P. Mahatme |
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Designation : |
Director |
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Address : |
Opposite
All India Radio, Altinho Panaji, North Goa, Goa - 403001 |
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Date of Birth : |
03.11.1951 |
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Date of Appointment : |
14.02.1989 |
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Name : |
Mr. Suresh S. Chowgule |
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Designation : |
Director |
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Name : |
Mr. Suresh
L Chowgule |
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Designation : |
Director |
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Address : |
Chowgule
Bunglow, House No 189-A, Baina, Vasco-Da-Gama, South Goa , Goa 403802 |
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Date of Birth : |
30.10.1940 |
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Date of Appointment : |
01.12.1972 |
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Name : |
Mr.
Jaywant Y Chowgule |
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Designation : |
Director |
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Address : |
House No
272-A, Chowgule Bunglow, Chicalim, South Goa, Goa- 403711 |
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Date of Birth : |
28.02.1958 |
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Date of Appointment : |
24.09.2004 |
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Name : |
Mr Umaji V
Chowgule |
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Designation : |
Director |
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Address : |
Chowgule
Compound, Airport Road, Chicalim, South Goa, Goa - 403711 |
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Date of Birth : |
27.12.1953 |
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Date of Appointment : |
25.08.2005 |
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Name : |
Mr Rama B
Bilguche |
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Designation : |
Company
Secretary |
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Address : |
A-1, Ankur
Mother Teresa Colony, Near Mes College, Zuari Nagar Sancoale, South Goa, Goa
- 403726 |
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Date of Birth : |
09.07.1951 |
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Date of Appointment : |
24.05.2001 |
KEY EXECUTIVES
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Name : |
Mr Rama B
Bilguche |
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Designation
: |
Company
Secretary |
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Address
: |
A-1,
Ankur Mother Teresa Colony, Near Mes College, Zuari Nagar Sancoale, South
Goa, Goa - 403726 |
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Date
of Birth : |
09.07.1951 |
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Date
of Appointment : |
24.05.2001 |
MAJOR
SHAREHOLDERS
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Names of Shareholders |
No.
of Shares |
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Mr. V. D. Chowgule |
151626 |
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Mr. Y. D. Chowgule |
6454 |
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Mr. Suresh Chowgule |
62046 |
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Mr. Vijay V. Chowgule |
28930 |
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Mr. Ashok V. Chowgule |
67256 |
|
Dolphin Extrusions Private Limited |
1400098 |
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Dolphin Mining Private Limited |
1197578 |
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Dolphin Ore Extractions Private
Limited |
1626446 |
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BUSINESS
DETAILS
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Line of Business : |
Mining,
Beneficiation and Export of Iron Ore, Shipbuilding and Manufacture of
Industrial Salt |
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Products : |
Ψ
Iron Ψ
Engineering Work Contract Ψ
Income from Barge & Machinery
Operation |
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Exports to : |
China, Germany,
Japan and South East Asia |
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GENERAL
INFORMATION
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No. of Employees : |
3,000 persons
(includes contract labourers) |
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Bankers : |
Ψ
State Bank of India, Vasco Da Gama,
Goa, India Ψ
State Bank of India, Pune |
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Facilities
: |
Ψ
State Bank of India, Vasco Da Gama,
Goa Term Loan : Rs. 379.557 millions Term Loan : Rs. 327.523 millions Ψ
State Bank of India, Pune Term Loan : Rs. 93.061 millions Cash Credit : Rs.
183.222 millions Ψ
Financial Institution Cash Credit : Rs.
19.028 millions |
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Banking
Relations : |
Good |
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Auditors : |
S. B. Billimoria & Company Chartered Accountants |
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Address: |
Maker Chambers, 2nd
Floor, R Kamani Road, Ballard Estate, Mumbai 400001, India |
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Tel. No.: |
91-22-22625001 |
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Fax No.: |
91-22-22613361 |
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E-Mail: |
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Associates : |
˜
Chowgule Steamships Limited ˜
Chowgule Industries Limited ˜
Mandovi Pellets Limited Mormugao, Goa 403803 ˜
Keltech Energies Limited ˜
Arlem Breweries Limited ˜
Chowgule & Company (Salt) Limited Mormugao, Goa- 403803 ˜
Chowgule & Company (Shipbuilding)
Limited Mormugao,
Goa- 403803 ˜
Kolhapur Oxygen & Acetylene
Private Limited ˜
Chowgule Brothers Private Limited ˜
Minas E Minerals De Goa Private
Limited ˜
Chowgule Real Estate &
Construction Company Private Limited ˜
Chowgule Brothers ˜
Chowgule and Company Private Limited.
Mining Division ˜
Chowgule and Company Private Limited.
Crane Division ˜
Chowgule and Company Private Limited.
Mandovi and Pellets Division ˜
Chowgule Koster India Construction
Chemicals private Limited (CKICCPL) ˜
Chowgule and Company Private Limited.
Auto Division |
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Subsidiaries : |
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˜
Aurangabad Breweries Limited |
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Memberships : |
˜
Confederation of Indian Industry |
CAPITAL
STRUCTURE
Authorised Capital
:
|
No. of Shares |
Type |
Value |
Amount |
|
5499580 |
Equity Shares |
Rs.10/-
each |
Rs.54.996
millions |
|
50042 |
6% Irredeemable Cumulative Preference
Shares |
Rs.100/-
each |
Rs.5.004
millions |
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Issued, Subscribed & Paid-up
Capital :
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No. of Shares |
Type |
Value |
Amount |
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5004200 |
Equity Shares |
Rs.10/- each |
Rs.
50.042 millions |
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FINANCIAL DATA
[all
figures are in Rupees Millions]
ABRIDGED BALANCE SHEET
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SOURCES OF FUNDS |
31.03.2004 |
31.03.2003 |
31.03.2002 |
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SHAREHOLDERS
FUNDS |
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1]
Share Capital |
50.042 |
50.042 |
50.042 |
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2]
Reserves & Surplus |
2463.098 |
2107.189 |
2077.932 |
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NETWORTH |
2513.140 |
2157.231 |
2127.974 |
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LOAN
FUNDS |
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1]
Secured Loans |
295.311 |
439.658 |
778.476 |
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2]
Unsecured Loans |
209.128 |
296.954 |
365.776 |
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TOTAL BORROWING |
504.439 |
736.612 |
1144.252 |
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Deferred
Tax Liability |
17.370 |
29.715 |
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TOTAL
|
3034.949 |
2923.558 |
3272.226 |
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APPLICATION
OF FUNDS |
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FIXED
ASSETS [Net Block] |
1009.045 |
1060.042 |
1191.484 |
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Capital
Work in Progress |
87.770 |
81.128 |
61.175 |
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INVESTMENTS |
1065.244 |
1013.019 |
1003.919 |
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CURRENT
ASSETS, LOANS & ADVANCES |
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Inventories |
467.909 |
416.377 |
434.730 |
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Sundry
Debtors |
244.138 |
278.364 |
429.150 |
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Cash
& Bank Balances |
20.986 |
22.976 |
169.641 |
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Other
Current Assets |
0.000 |
0.000 |
0.000 |
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Loans
& Advances |
1038.733 |
848.399 |
664.892 |
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Total Current
Assets |
1771.766 |
1566.116 |
1698.413 |
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Less
: |
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Current
Liabilities |
799.858 |
725.482 |
585.449 |
|
Provisions |
101.915 |
76.398 |
104.781 |
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Total Current Liabilities |
901.773 |
801.880 |
690.230 |
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Net Current Assets |
869.993 |
764.236 |
1008.183 |
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MISCELLANEOUS
EXPENSES |
2.897 |
5.133 |
7.465 |
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TOTAL
|
3034.949 |
2923.558 |
3272.226 |
PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
31.03.2004 |
31.03.2003 |
31.03.2002 |
Sales Turnover
[including other income]
|
2953.139 |
2338.877 |
2436.304 |
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Profit/(Loss)
Before Tax
|
617.892 |
186.022 |
120.402 |
Provision for
Taxation
|
156.070 |
21.519 |
39.161 |
Profit/(Loss)
After Tax
|
461.822 |
164.503 |
81.241 |
|
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Export Value
|
2379.645 |
1827.719 |
34.332 |
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Import Value
|
14.749 |
-- |
NA |
KEY RATIOS
|
PARTICULARS |
|
31.03.2004 |
31.03.2003 |
31.03.2002 |
PAT / Total Income
|
(%)
|
15.638
|
7.033 |
3.334 |
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Net Profit Margin
(PBT/Sales) |
(%) |
22.296
|
8.932 |
4.942 |
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Return on Total
Assets
(PBT/Total Assets} |
(%) |
15.707
|
5.000 |
3.044 |
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Return on
Investment (ROI)
(PBT/Networth) |
|
0.245
|
0.073 |
0.056 |
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Debt Equity Ratio
(Total Liability/Networth) |
|
0.566
|
0.720 |
0.862 |
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Current Ratio
(Current Asset/Current Liability) |
|
1.964
|
1.953 |
2.460 |
LOCAL
AGENCY FURTHER INFORMATION
History
The company was originally established in the year 1941 as a
Trading Company.
It is the main
company of the Chowgule Group.
Subject exports Iron
Ore
SHIP
BUILDING DIVISION
The company's Shipyard developed at Loutolim, Goa has
facilities to build different types of ships upto 100 metres L X 16 metres W.
With 220 metres length of slipway with open space on both the sides of the
rails, the yard can accommodate the construction of four vessels at a time.
With the fully equipped machine and structural shops, the
yard manufactures the required ship components and equipments.
The yard has pioneered full construction of the ocean -going
vessels such as Ore carrying barges ,
Grab and Suction Dredgers, Deep Sea Fishing Trawlers, Off-Shore drilling Rigs,
Tugs, Pontoons, Launches, Hopper Barges and Coastal Vessels.
The Loutolim Shipyard holds an International Ship Repair
Licence and takes up the sea -going vessels for repairs.
THE
MINING DIVISION
The
Mines
The company's Goa based mines, marvels of integration,
mechanization and innovation, have been for over four and half decades
exporting high grade iron ore and pellets to Japan, Eastern Europe and China.
Subject were the first to export iron ore to Japan and Eastern Europe from Goa.
Riding high on the back of the progressive export market, their run-of-mine
production today exceeds five million tonnes per annum.
The company also maintains a fleet of self-propelled barges
to transport ore from river side loading points near the mines to Mormugao
Harbour. Uptopping vessels were introduced for mid-stream loading.
Mechanized Iron Ore
Mines
Iron ore Beneficiation Plant at Tudou.
THE
BENEFICIATION PLANTS
The company has three Beneficiation Plants with State-of-the
-Art Beneficiation Technology located at Costi Mines, Sirigao Mines and Tudou
Mines to transform low grade iron ore to high grade iron ore. The
Beneficiation Plants at Costi and
Sirigao Mines, designed by Lurgi-Chemie, West Germany with imported equipment
from Voest Alpine, Austria supply 2 m .tonnes per annum of high grade iron ore
concentrate. The Third Beneficiation Plant at Tudou has a beneficiation
technology with far greater value addition capability. This plant, transforms
low grade iron-ore contents of 34-40% Fe into high grade iron ore of plus 67%
Fe with a capacity to produce 0.5 million tonnes of high grade concentrate per
annum entirely for export.
GEOLOGY
AND MINERAL EXPLORATION
The company has a Geology and Mineral Exploration as a
creditable adjunct to the Mining Division to prove reserves, prepare and update
Geological data and to explore minerals like limestone, bauxite and manganese
besides iron ore.
Analythical & Testing Laboratory for Quality control
QUALITY
CONTROL
This quality conscious department provides the back-up to
geological investigations, assists in mine planning and R & D, and monitors
the various stages of the production and export processes.
ANALYTICAL
SERVICE AND TESTING FACILITY
The company has sophisticated testing laboratories, staffed
with professionals in mineral and material technology, material selection and
testing procedures. These staffers are on the various panels of the Indian
Standards Institution and the International Standards Organisation.
A section of Central Workshop
CENTRAL
WORKSHOP
The company has a Central Workshop at Khandepar. This unique
indispensable centrally located workshop with ISO 9002 Certificate undertakes
major overhauls, repairs and engine overhauls of mining equipment. It also
reconditions undercarriages including heavy components.
Transfer vessel in operation
TRANSHIPMENT
The company's 33,000 DWT transfer vessel MARATHA DEEP, has a
system of mechanised loading with belt conveyors to accelerate transhipment
operations. Maratha Deep feeds vessels at a speed of 20,000 m. tonnes per
day-necessary for the mammoth bulk carriers used today.
EXPORTS
The company is committed to enhancing the country's foreign
exchange reserves. State-of-the-art hi-tech mining equipment and a modernised
maritime fleet enables the export unit to meet iron ore contracts worth
millions of tonnes every year.
For the year ended 31st March, 2002, production
of iron ore was 1.770 million tons (2.001 million tons in the previous
year). Exports of 2.772 million tons
realising Rs. 1673.6 millions (previous year 2.543 million tons realising Rs.
1441.3 millions). 100% Export Oriented
plant at Tudou produced 0.377 million tons and exported 0.396 million tons of
processed fines realising Rs. 286.6 millions (previous year production 0.408
million tons, exported 0.436 tons realising Rs. 287.0 millions).
Sale in the domestic market was Rs. 49.9 millions (Rs. 94.1
millions in previous year).
Due to recession in Japan, iron ore prices fell 2.40% for
fines and 5% for lumps.
The shipbuilding division delivered 5 vessels at Rs. 257.589
millions.
Untopping activity fetched Rs. 11.083 millions (Rs. 19.363
millions previous year).
During the year under report, the company invested in 0.535
million 12% Redeemable non-cumulative preference shares of Rs. 100 each in
Aurangabad Breweries Limited, a subsidiary of the company.
Production of ore
during the year 2003-04 was 32.64 lacs
tons as compared to 27.13 lac tons.
It has been
accredited with ISO 9002 Certification
ARCHITECT OF GOA'S INDUSTRIAL DEVELOPMENT
Established
in 1941, Chowgule and Co. Private Limited is the parent Company of Chowgule
Group of Companies.
The
Company laid the foundation of industry in Goa and made pioneering contribution
to its development.
The Company shipped 1,500 tonnes of manganese ore to Czechoslavakia in 1947.
And in 1950, a shipment of 9,000 tonnes of iron ore to Japan, opened new
economic vistas not only for the Company, but also for Goa.
In 1951, adopting a unique combination of practical, down-to-earth approach and
a 'vision', the Company wrote a new theory of success. A theory best
exemplified by the 'Chowgule Formula' - a historic agreement signed by the
Company with the Japanese steel industry.
The arrangement was unique. The Japanese would loan out equipment, men, and
money to mechanize their mines. And the Company would repay the loan through
the cost of the ore exported to Japan.
A
brilliant strategy that boosted the volume of iron ore exports from Goa. And
the beginning of a saga of success.
The saga continues even today.
NOTHING SUCCEEDS LIKE INNOVATION
The
mechanization of mines was soon followed by modernization of the transport
system that carried the ore and loaded it onto the ships for export.
Slow and inadequate country craft was traditionally used for transporting iron
ore through the inland waterways up to the sea port. The Company ordered
self-propelling barges from Japan, speeding up delivery time and cutting costs.
Naturally, these barges needed maintenance. So, a repair yard was built.
What next? Moving over from repairing barges, the yard started building barges.
With its own expertise. Before long, the yard was putting out different kinds
of vessels onto internationals waters. The Chowgule vision shone through again.
IF THE SHIP CAN'T COME TO PORT, WHY NOT TAKE THE PORT TO THE SHIP?
The
ore was loaded onto a ship in a particular way. The traditional way. That is
loading a ship partly alongside the port, due to 'low draft'. And the rest,
mid-stream, by winch-loading. Only to delay the dispatch of a vessel.
So in 1969, the Company introduced the 'uptopping' by a Transhipper - an
ocean-going vessel equipped with conveyor belts and cranes that drew alongside
a ship mid-stream and loaded the ore onto the ship.
Dispatch of vessels was now quicker. Yet again the Company showed the rest of
the shipping fraternity the way.
LIBERATION FOR THE GOAN IRON ORE INDUSTRY WITH HELP FROM JAPAN
Innovation
in some areas soon revealed flaws in the rest of the system. As the volume of
exports grew, it soon became evident that the ore-handling facilities at
Mormugao Port were highly inadequate. Bottlenecks were slowing down the speed
of dispatch and increasing freight charges and demurrage.
Taking the initiative yet again, the Company solicited Japan's help. And a
completely mechanized, all-weather ore-handling plant was installed at Berth
no. 6 at Mormugao Port.
Designed to work around the clock, the plant at once liberated the Goan Iron
Ore industry. Saving time and money. And making it more internationally
competitive in world markets. And also set the pace for a bigger Mechanical
Ore-Handling Plant, now in operation.
MEETING NEW CHALLENGES
In
order to increase productivity, the steel industry needed iron ore in the form
of pellets.
The Company set up the first 0.5 million tonnes capacity Pelletization Plant in
the country in 1964. The first of its kind East of Suez and only the 3rd of its
kind in the world. Promoted by the Company, a 1.8 million tonnes capacity plant
followed in 1979.
The plant benefited India's exports, setting an upswing trend for the country's
foreign exchange earnings.
GROWING NATIONWIDE, VIA THE WORLD
In 1961, an event brought euphoria and a changed economic situation - the liberation of Goa to become part of India. This called for a bigger playing field for the industry in Goa. For the prudent Chowgules, it was time for the progressive diversification into a range of critical activities in the core sector of India's industry. Diversification linked to the needs of a fast developing nation. Thus becoming a part of the industrial canvass nationwide, the Chowgules grew. With their Industrial Salt Project in Gujarat; Explosives plants in Karnataka, Maharastra and Madya Pradesh; Oxygen and Acetylene Plant in Maharastra and a Brewery in Maharastra. This progression to the national industrial main-stream was beginning of the surge that placed the Chowgule Group securely on the Industrial map of the world.
redit 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%)
FOREIGN
EXCHANGE RATES
|
Currency |
Unit
|
Indian
Rupees |
|
US Dollar |
1 |
Rs.43.73 |
|
UK Pound |
1 |
Rs.78.86 |
|
Euro |
1 |
Rs.53.82 |