MIRA
INFORM REPORT
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Report Date : |
07.06.2008 |
IDENTIFICATION
DETAILS
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Name : |
GOWTHAMI STEELS LIMITED |
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Registered Office : |
3-28, Opposite Steel City Bus Depot, Kurmannapalerm, Visakhapatnam – 530046,
Andhra Pradesh |
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Country : |
India |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
24.10.1994 |
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Com. Reg. No.: |
01-18613 |
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CIN No.: [Company
Identification No.] |
U27107AP1994PLC018613 |
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IEC No.: |
2699000116 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
VPNG00558F |
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PAN No.: [Permanent
Account No.] |
AAACG8092M |
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Legal Form : |
A closely held Public Limited Liability Company |
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Line of Business : |
Manufacturer of different sizes of MS Wire,
and Trading Steel Products, Re-Bars, and other Steel Wires. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 170000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
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Comments : |
Mr. Prabhakar, Finance Manager assured to provide with latest
financials and business details. He failed to provide so far due to heavy
pressure of work. Subject is a well –
established company having satisfactory track records. Trade relations are fair. Financial position is satisfactory. Payments
are usually correct and as per commitments. . Nothing adverse reported. The company can be considered normal for business dealings at usual
trade terms and conditions. |
INFORMATION PARTED
BY
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Name : |
Mr. V K Prabhakar |
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Designation : |
Finance Manager |
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Contact No.: |
91-9912227746 |
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Date : |
07.06.2008 |
LOCATIONS
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Registered Office : |
3-28, Opposite Steel City Bus Depot, Kurmannapalerm, Visakhapatnam –
530046, Andhra Pradesh, India |
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Tel. No.: |
91-891-258-7279 / 7379 |
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Mobile No.: |
91-9912955999/ 9912227746 |
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Fax No.: |
91-891-2587179 |
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E-Mail : |
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Website : |
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Location : |
Owned |
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Branch Office : |
Visakhapatnam: “Gowtami House” Mobile No.: 91-99492
38744 Vijayawada: Bharathi Nagar Mobile No.:-
91-98499-86741 Hyderabad:
Mig – 7-1-344 Kerala: Karthika, Chennai: New # 31, Gill Nagar
Extn. Bangalore:
13, Malavalli Orissa: Near Telephone Bhavan Faridabad: Plot No. 239 & 244 |
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Factory 1: |
S. No. 2/4, Aganampudi, Visakhapatnam – 530 046, Andhra
Pradesh, India |
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Tel. No.: |
91-891-2587279 /
379 / 479 / 489 |
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Mobile No.: |
91-9949238744 |
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E-Mail : |
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Location : |
Owned |
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Factory 2: |
S. No. 2/4, Aganampudi, Visakhapatnam- 530 046, Andhra
Pradesh, India |
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Tel. No.: |
91-891-2587 489 & 99492 38743 |
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Trading Division : |
“Gowtami House” Kurmannapalem, Opposite Steel City Bus Depot, Visakhapatnam- 530 046, Andhra Pradesh, India |
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Tel No.: |
91-891-2587 279/379/479 & 99492 38744 |
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C & F Division : |
Indian Oil Corporation, Bahadurpalli, R R District, 62/1-A, Opposite, Satyam Technology Centre, Hyderabad- 530 05, Andhra Pradesh, India |
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Tel No.: |
91-40-2309 1133/1144 |
DIRECTORS
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Name : |
Mr. G Mohan Rao |
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Designation : |
Managing Director. |
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Address : |
D No. 4-76,
Kurmannapalem , Visakhapatnam – 530 046, Andhra Pradesh, India |
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Date Of Birth/Age : |
01.08.1971 |
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Date Of Appointment
: |
22.09.1997 |
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Qualifications : |
B. Tech |
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Experience: |
15 years |
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Name : |
Mr. G S Murali Krishna |
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Designation : |
Executive Director. |
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Address : |
D No. 4-27/1, Kurmannapalem, Visakhapatnam- 530 046, Andhra Pradesh, India |
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Date of Birth/Age : |
15.08.1969 |
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Date of Appointment : |
20.03.2000 |
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Qualifications : |
B. Tech |
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Experience: |
16 years |
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Name : |
Mrs. Gannamani
Srivani |
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Designation : |
Director |
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Address : |
F No. 504, Vietla Towers, Peda Waltair, Visakhapatnam-530 017, Andhra
Pradesh, India |
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Date of Birth/Age : |
18.07.1975 |
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Date of Appointment : |
30.09.2004 |
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Qualifications : |
M. Com |
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Experience: |
10 years |
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Name : |
Mrs. G.Vijayalakshmi |
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Designation : |
Director |
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Address : |
Door No. 31/10/1, Kurmannapalem, Visakhapatnam – 530 046, Andhra
Pradesh, India |
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Date of Birth/Age : |
02.12.1972 |
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Date of Appointment : |
30.09.2004 |
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Qualifications : |
M Com |
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Experience: |
10 years |
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Directorship in other companies: |
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Name of the company: |
Gowtami Steel Products Private Limited |
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CIN of the company: |
U27105AP1995PTC022086 |
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Designation: |
Director |
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E-mail: |
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PAN No.: |
ACYPG7404Q |
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Tel No.: |
91-22-891-2587479 |
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Name : |
Mr. G Rama Krishna rao |
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Designation : |
Director |
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Address : |
Plot No. 161, Sector V M V P Colony, Visakhapatnam– 530 046, Andhra Pradesh,
India |
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Date of Birth/Age : |
15.12.1966 |
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Date of Appointment : |
01.10.2004 |
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Name : |
Mr. Surendra Apparao Devarapalli |
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Designation : |
Director |
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Address : |
11-23 Undrajavaram, Andhra Pradesh, India |
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Date of Birth/Age : |
02.09.1958 |
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Date of Appointment : |
01.10.2004 |
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Name : |
Mr. K Srinavasa Rao |
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Designation : |
Director |
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Address : |
6-3-609/145, Flat No. 204 Aashyana Aprtments, Ananda Nagar Colony,.
Khairatabad , Hyderabad, Andhra Pradesh, India |
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Date of Birth/Age : |
30.07.1968 |
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Date of Appointment : |
01.10.2004 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders (as on 31.03.2006) |
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No. of Shares |
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Mr. G S Murali Krishna |
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463000 |
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Mr. G Mohan Rao |
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752842 |
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Mr. G S Vani |
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233360 |
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Mr. G Vijaya Lakshmi |
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274300 |
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Mr. K Kameswara |
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15000 |
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Mr. K Subba Rao |
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5000 |
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Mrs. Godavarthi Surya Rao |
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7800 |
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Mr. D Appa Rao |
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19960 |
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Mr. D Subhash Chandra |
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19960 |
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Mr. E Bharathi |
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19960 |
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Mr. Kumar Raja |
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9980 |
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Mr. K V J Varma |
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5190 |
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Mr. K Srinivasa Rao |
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4990 |
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Mr. J Srinivada Rao |
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4990 |
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Mr. N Satyanarayana |
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4990 |
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Mr. J Suri Subba Rao |
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4990 |
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Mr. N Krishna |
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4990 |
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Mr. K Pattabharamayya |
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8000 |
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Mr. K L Narasamba |
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2000 |
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Mr. D Krishna Prasad |
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100000 |
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Mr. Kuma Maheshwar Rao |
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150000 |
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Mr. K Srinivasa Rao |
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100000 |
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Mr. B Visweswara Rao |
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70000 |
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Mr. B Krishna Kumari |
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80000 |
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Mrs. G Srihari Devi |
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2500 |
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Mr. G Bhanumathi |
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4000 |
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Mr. G Veera Raghavulu |
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11398 |
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Mrs. Radha Sai Sudha |
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5000 |
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Mr. K Ramesh |
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100000 |
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Others |
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15800 |
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Total |
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2500000 |
(As on 31.03.2006):-
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Category |
Percentage |
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Directors or relative of directors |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of different sizes of MS Wire,
and Trading Steel Products, Re-Bars, and other Steel Wires. |
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Products : |
· Steel Wires · CO2 Wires · GI Wires · HC Wires · MS Wires · Fine Wires |
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Terms : |
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Selling : |
L/C, Cash and Credit (30-60 days) |
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Purchasing : |
L/C, Cash, Credit (30-60 days) |
GENERAL
INFORMATION
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Customers : |
· Wholesalers · End Users · Retailers |
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No. of Employees : |
152 |
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Bankers : |
· State Bank of India BHPV Branch, Visakhapatnam-530001, Andhra Pradesh, India |
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Facilities : |
Credit Limit of Rs.75.000 Millions |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
G P Associates Chartered Accountants |
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Address : |
9-29-17/C, Flat No. 402, Seeta Lakshmi Towers, Balaji Nagar,
Visakhapatnam – 530 003, Andhra Pradesh, India |
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Tel No.: |
91-891-2532805/ 2551743 |
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Fax no.: |
91-891/2534598 |
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Associates/Subsidiaries : |
Gowtami Steel
Products Private Limited {CIN: U27105AP1995PTC022086} S No.2/4, Aganampudi, Visakhapatanam – 530046, India (Trading of Steel wires) Gowtami
Constructions Private Limited S No.2/4, Aganampudi, Visakhapatanam – 530046, India (Construction of Apartments |
CAPITAL STRUCTURE
(As on 31.03.2007)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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7000000 |
Equity Shares |
Rs. 10/- each |
Rs. 70.000 millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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|
4984430 |
Equity Shares |
Rs. 10/- each |
Rs.49.844
millions |
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FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
65.000 |
49.844 |
26.946 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
13.803 |
14.607 |
14.144 |
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4] (Accumulated Losses) |
(0.188) |
(0.188) |
0.000 |
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NETWORTH |
78.615 |
64.263 |
41.090 |
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LOAN FUNDS |
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1] Secured Loans |
143.587 |
155.330 |
124.977 |
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2] Unsecured Loans |
32.625 |
2.948 |
5.158 |
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TOTAL BORROWING |
176.212 |
158.278 |
130.135 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.965 |
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TOTAL |
254.827 |
222.541 |
172.190 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
132.173 |
33.232 |
34.834 |
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Capital work-in-progress |
0.000 |
57.523 |
7.023 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
|
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Inventories |
74.499
|
60.232 |
115.624
|
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Sundry Debtors |
70.233
|
61.250 |
49.964
|
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Cash & Bank Balances |
3.572
|
8.734 |
10.390
|
|
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Other Current Assets |
0.000
|
0.000 |
0.000
|
|
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Loans & Advances |
41.595
|
95.784 |
43.655
|
|
Total
Current Assets |
189.899
|
226.000 |
219.633
|
|
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Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
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Current Liabilities |
67.095
|
94.214
|
89.300
|
|
|
Provisions |
0.150
|
0.000
|
0.000
|
|
Total
Current Liabilities |
67.245
|
94.214 |
89.300
|
|
|
Net Current Assets |
122.654
|
131.786 |
130.333
|
|
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
254.827 |
222.541 |
172.190 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
|
Sales Turnover |
931.487 |
1005.456 |
923.568 |
|
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Other Income |
17.175 |
21.855 |
43.592 |
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Total Income |
948.662 |
1027.311 |
967.088 |
|
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Profit/(Loss) Before Tax |
1.243 |
0.485 |
7.666 |
|
|
Provision for Taxation |
0.150 |
0.023 |
2.536 |
|
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Profit/(Loss) After Tax |
1.093 |
0.462 |
5.130 |
|
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Expenditures : |
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Raw Material Consumed |
834.551 |
942.248 |
829.088 |
|
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Salaries, Wages, Bonus, etc. |
22.024 |
18.621 |
3.860 |
|
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Managerial Remuneration |
21.221 |
8.158 |
1.020 |
|
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Payment to Auditors |
0.000 |
0.000 |
0.085 |
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Interest |
31.775 |
17.859 |
12.246 |
|
|
Insurance Expenses |
30.124 |
0.000 |
1.464 |
|
|
Power & Fuel |
0.000 |
0.000 |
2.657 |
|
|
Depreciation & Amortization |
7.724 |
4.904 |
3.841 |
|
|
Other Expenditure |
0.000 |
35.036 |
105.231 |
|
Total Expenditure |
947.419 |
1026.826 |
959.492 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
PAT / Total Income |
(%) |
0.11
|
0.04 |
0.53
|
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Net Profit Margin (PBT/Sales) |
(%) |
0.13
|
0.05 |
0.83
|
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Return on Total Assets (PBT/Total Assets} |
(%) |
0.38
|
0.19 |
2.93
|
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Return on Investment (ROI) (PBT/Networth) |
|
0.01
|
0.01 |
0.19
|
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|
Debt Equity Ratio (Total Liability/Networth) |
|
3.10
|
3.93 |
5.34
|
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Current Ratio (Current Asset/Current Liability) |
|
2.82
|
2.40 |
2.46
|
LOCAL AGENCY
FURTHER INFORMATION
FORM 8:-
|
Corporation identity number or foreign company registrations number of
the company |
U27107AP1994PLC018613 |
|
Name of the company |
GOWTHAMI STEELS LIMITED |
|
Address |
3-28, Steel City Bus Depot, Kurmannapalem, Visakhapatnam,
Andhra Pradesh, India |
|
This Form is for |
Modification of Charge |
|
Type of Charges |
· Immovable Property · Book Debts |
|
Particular of the charge holder
|
State Bank of India BHPV Branch, Visakhapatnam- 560 001,
Andhra Pradesh, India E-mail: udanga_dsc@rediffmail.com |
|
Nature or description of the instrument creating charge |
· Supplemental agreement of hypothecation of goods and assets for increase in the overall limit · Supplemental agreement of loan for increase in the overall limit · Letter regarding the grant of individual limits within the overall limit. |
|
Date of the instrument creating charge |
12.10.2006 |
|
Amount Secure by the charge |
Rs. 217.500 millions |
|
Brief of the principal terms and conditions and extent and operation
of the charge |
Rate
of Interest : Cash credit -13.50% Terms
of repayment: Term Loan repayable of Rs. 67.500 millions
in Twenty quarterly installment commencing from June 2007 Margin: Raw Materials 30% Stock in process-30% Finished goods -30% Book Debts / receivables (cover period 30
days) -40% |
|
Short particulars of the Property charged |
All the existing securities be and are
hereby extended to the enhanced / revised limits also. |
|
Particulars of the present modification |
The present limits are enhanced in the
following manner: · Cash credit from 60.000 millions to 75.000 millions · Term Loan from 25.000 millions to 67.500 millions · Letter of credit from 24.000 to 50.000 · Bank guarantee for an extent of 25.000 millions · SLC limit of 12.500 remains the same. |
WEBSITE DETAILS:
Industrial
Customers manufacturing Wire nails, Welded Wire mesh, Welding electrodes,
Stitching wires, Galvanized Wires, Binding wires, J-Bolts etc., and Individual
consumers of concrete reinforcement.
Subject was established in the year 1994 under flagship of Sri
G.Ananda Rao, the CMD. The main activity has been manufacturing of Gauge Wires
and marketing of Wire rod coils and other steel products in
Visakhapatnam. The initial capacity of the unit was 10,000 MT. Over
the years, it has shown substantial improvement, and increased its capacity to
24,000 MT., rendering quality services to its customers. With the proposed
installation of the new machinery the installed capacity of the unit will be
36000 MT’s p.a. Presently the company is being efficiently managed by its
Managing Director G.Mohan Rao.Currently, subject is proposing to expand its
business by manufacture of H.C.Wire, G.I.Wire, CO2 Wire, P.C. Wire and Fine
Wires.
The
company sources it’s raw material both for trading and for in-house consumption
from the steel gigantics Viz.,
Rastriya Ispat Nigam Limited, Steel Authority of India Limited, Tata Iron and
Steel Compnay Limited., in various grades, quality and chemical composition
etc.,
The group has a long presence in the steel sector dating way back to
1990. The varied experience in this sector ranges from C and F services,
manufacturing and marketing Steel wires and steel products. The company
has developed profound knowledge of the intricacies in the steel sector.
The company has unique distinction in the process of acting as an
authorised consignment agent for RINL during the period 1990–997 in the name
and style of M/s. G.S.N. Murthy and Co., Visakhapatnam. During this
period various steel products were handled on an average of 15,000 tons per
month. It had taken up consignment assignment of RINL as Consignment Agent in
the name and style of M/s Anand Transport was handled at Bhubaneshwar during
the period 1997.
Subject has established a marketing network covering the entire south
India. The company has four branch offices and dealers throughout the
four states of south India. In Andhra Pradesh the company has offices in
Visakhapatnam, Hyderabad and Vijayawada. The entire marketing process is
thoroughly streamlined with the best operating and marketing practices.
Most of the processes are computerized resulting in efficient and prompt
services to the customers and suppliers. A highly competent team of
personnel specialized in cross-functional activities, is strategically
positioned to provide good support and service to the stakeholder of the organization.
All this has enabled the company in achieving a near 100% growth rate in the
year 2001 – 2002.
The company pursues an aggressive marketing strategy that has resulted
in a strong presence in the market and has enabled the company to achieve a
dominant market share and its 100 percent targets. The company group is also
actively engaged in transport and handling contracts.
Management Team:-
G.Mohan
Rao ::
Managing
Director
Shri G.Mohan Rao, (36-years),
the present Managing Director is a Mechanical Engineer, looking after General
Administration, Financial, Technical, Manufacturing and Marketing aspects of
the company besides being a core decision maker. He is he key a person
with noble thoughts always looks forward to develop the Company. On account of
his valuable efforts, subject has been awarded with the prestigious CFA
contract with IOCL with his vulnerable efforts. He has proved himself a
successful second-generation entrepreneur.
G.S.Murali
Krishna :
Executive
Director
Sri
G.Muralikrishna (38 years), the Executive Director of the Company. He is the
Mechanical Engineer by qualification and started his career in 1995 by joining his
father. The strength of the company is the main support and guidance of Sri
G.Ananda Rao who has diversified successfully into trading of various steel
rods and manufacturing of M.S.Wires of different gauge.
G.Vani
:
Director
of the Company
Smt.
G.Vani (31-years) the Director of the Company, is a Post graduate in marketing
is looking after the transactions of marketing of steel products.
G.Vijayalakshmi :
Director of the Company
Smt.
G.Vijayalakshmi, (34-years) the Director of the Company is a Post Graduate
in Finance is looking after the day-to-day financial transactions by being a
hand-in-glow to Sri G.Mohan Rao.
Trading:
· W R C
· Rebars
· Channels
· Rounds
· M.S.Bars
· Oil Rods
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 records 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 records 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.42.79 |
|
UK Pound |
1 |
Rs.83.77 |
|
Euro |
1 |
Rs.66.71 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
--- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--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 |
|
TOTAL |
|
49 |
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 |
Unfavourable & favourable factors carry similar weight in credit
consideration. 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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|