MIRA INFORM REPORT

Report Date :

05.04.2012

IDENTIFICATION DETAILS

Name :	GOWTHAMI SOLVENT OILS LIMITED (w.e.f. 28.08.2009)
Formerly Known As :	GOWTHAMI SOLVENT OILS PRIVATE LIMITED
Registered Office :	Pydiparru, Post Box No.7, West Godavari District, Tanaku – 534211, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	22.03.1974
Com. Reg. No.:	01-001699
Capital Investment / Paid-up Capital :	Rs.26.400 Millions
CIN No.: [Company Identification No.]	U15140AP1974PLC001699
TAN No.: [Tax Deduction & Collection Account No.]	VPNT00181G
PAN No.: [Permanent Account No.]	AAACT6359A
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Exporters of Solvent Extructed Oils Mill Machinery, Rice Bran Oil, Soyabean Oil, Sunflower Oil and Oil Mill Machinery.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 1600000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered for normal for business dealings at usual 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.

ECGC Country Risk Classification List – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

LOCATIONS

Registered Office :	Pydiparru, Post Box No.7, West Godavari District, Tanaku – 534211, Andhra Pradesh, India
Tel. No.:	91-8819-224992/ 224993
Fax No.:	91-8819-224797
E-Mail :	gowthamisolvent@gowthami.com

DIRECTORS

(AS ON 29.08.2011)

Name :

Mr. Mallina Ramachandrarao

Designation :

Managing Director

Address :

Door No.33-80, Society Building Sajjapuram, Tanuko, West Godavary – 534211, Andhra Pradesh, India

Date of Birth/Age :

09.06.1936

Date of Appointment :

12.07.2003

DIN No.:

00297482

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U80100AP1993PTC016208	GOWTHAMI EDUCATIONAL ACADEMY PRIVATE LIMITED	Director	27/08/1993	27/08/1993	Active	NO
2	U05005AP1994PTC017899	PAMPA AQUA FARMS PRIVATE LIMITED	Director	11/7/1994	11/7/1994	Active	NO
3	U40109AP1999PTC031221	GOWTHAMI BIO-ENERGIES PRIVATE LIMITED	Director	1/4/1999	1/4/1999	Active	NO
4	U15140AP1974PLC001699	GOWTHAMI SOLVENT OILS LIMITED	Managing director	12/7/2003	12/7/2003	Active	NO
5	U40108AP2003PTC042254	GOWTHAMI GREEN ENERGY PRIVATE LIMITED	Director	17/12/2003	17/12/2003	Active	NO
6	U91110MH1971NPL015233	THE SOLVENT EXTRACTORS ASSOCIATION OF INDIA	Director	22/09/2006	22/09/2006	Active	NO
7	U17299AP2010PLC067441	GOWTHAMI SPINTEX (INDIA) LIMITED	Director	7/6/2010	7/6/2010	Active	NO

Name :

Mrs. Bhogavalli Subba Rao

Designation :

Director

Address :

Undrajavaram, Tanuko, West Godavary – 534216, Andhra Pradesh, India

Date of Birth/Age :

15.07.1944

Date of Appointment :

25.08.2006

DIN No.:

0008656

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U15140AP1974PLC001699	GOWTHAMI SOLVENT OILS LIMITED	Director	25/08/2006	25/08/2006	Active	NO
2	U80100AP1993PTC016208	GOWTHAMI EDUCATIONAL ACADEMY PRIVATE LIMITED	Director	25/08/2006	25/08/2006	Active	NO
3	U17299AP2010PLC067441	GOWTHAMI SPINTEX (INDIA) LIMITED	Director	9/3/2010	9/3/2010	Active	NO

Name :

Mr. Mallina Venkataq Rayudu

Designation :

Director

Address :

Door No.23-66-4 Park Street Indiranilayam, Tanuku, West Godavary – 534211, Andhra Pradesh, India

Date of Birth/Age :

07.05.1961

Date of Appointment :

12.07.2003

DIN No.:

00297581

Name :

Mr. Bhogavalli Venkata Satyanarayana Prasad

Designation :

Director

Address :

Door No.8-3-833/277, 2^nd Phase, Kamalapuri Colony, Hyderabad – 500073, Andhra Pradesh, India

Date of Appointment :

30.07.2010

DIN No.:

00017781

Name :

Mr. Bhogavalli Srimanarayana

Designation :

Director

Address :

Door No.230706 Park Road, Sajjapuram, Tanuku, West Godavary – 534211, Andhra Pradesh, India

Date of Birth/Age :

15.03.1957

Date of Appointment :

12.07.2003

DIN No.:

00297693

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U15140AP1974PLC001699	GOWTHAMI SOLVENT OILS LIMITED	Director	12/7/2003	12/7/2003	Active	NO
2	U80100AP1993PTC016208	GOWTHAMI EDUCATIONAL ACADEMY PRIVATE LIMITED	Director	12/7/2003	12/7/2003	Active	NO
3	U17299AP2010PLC067441	GOWTHAMI SPINTEX (INDIA) LIMITED	Managing director	1/7/2010	9/3/2010	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 29.08.2011)

Names of Shareholders	No. of Shares
N. Venkatarama Raju	1600
N. Subba Raju	2000
NVSN Anjaneya Raju	2000
Bhogavalli Indira Devi	21088
Bhogavalli Srimanarayana	28016
Mallina Venkataq Rayudu	12440
Mallina Ravikanth	13224
Mallina Ramachandra Rao	22492
Mallina Bhadram	20800
Mallina Satyasree	9992
Bhogavalli Aparna	16000
M S R K Pramod	8152
M. Vishnu (Minor)	3240
Bhogavalli Bapaiah	22746
B. Muthayamma	9875

(AS ON 31.08.2011)

Equity Shares Break – up

Category	Percentage
Bodies corporate	0.02
Directors or relatives of directors	95.00
Other	4.98
Total	100.00

BUSINESS DETAILS

Line of Business :

Exporters of Solvent Extructed Oils Mill Machinery, Rice Bran Oil, Soyabean Oil, Sunflower Oil and Oil Mill Machinery.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Andhra Bank

Tanuku Branch, R. P. Road, Tanuku – 534211, Andhra Pradesh, India

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Working Capital Loans Banks Secured	369.409	229.508
Loans taken for vehicles secured	1.677	2.552
Loans taken for other fixed assets secured	480.084	353.029
Total	851.170	585.089
Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Loans directors unsecured	14.128	13.510
Public deposits unsecured	33.228	12.739
Deposits related parties unsecured	105.657	38.596
Deferred sales tax loan unsecured	0.000	2.689
Total	153.013	67.534

Banking Relations :	--
Auditors :
Name :	M Bhaskara Rao and Company Chartered Accountants
Address :	Hyderabad – 500482, Andhra Pradesh, India
PAN No.:	AADFM4831E
Associates/Subsidiaries :	· Gowthami Bio Energies Private Limited · Gowthami Educational Academy Private Limited

CAPITAL STRUCTURE

(AS ON 29.08.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
398000	Equity Share	Rs.100/- each	Rs.39.800 Million
2000	Preference Shares	Rs.100/- each	Rs.0.200 Million
	Total		Rs.40.000 Millions

Issued Capital :

No. of Shares	Type	Value	Amount
264000	Equity Share	Rs.100/- each	Rs.26.400 Millions
2000	Preference Shares	Rs.100/- each	Rs.0.200 Million
	Total		Rs.26.600 Millions

Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
264000	Equity Share	Rs.100/- each	Rs.26.400 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		26.400	26.400	26.400
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		371.219	281.257	216.893
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		397.619	307.657	243.293
LOAN FUNDS
1] Secured Loans		851.170	585.089	549.228
2] Unsecured Loans		153.013	67.534	42.245
TOTAL BORROWING		1004.183	652.623	591.473
DEFERRED TAX LIABILITIES		68.868	90.121	86.460
TOTAL		1470.670	1050.401	921.226
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		646.207	671.999	637.075
Capital work-in-progress		134.555	3.497	0.000
INVESTMENT		30.000	10.000	10.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	347.201	240.050	128.131
	Sundry Debtors	112.265	109.447	97.739
	Cash & Bank Balances	77.538	12.231	65.274
	Other Current Assets	46.108	34.818	0.000
	Loans & Advances	162.165	31.380	36.327
Total Current Assets		745.277	427.926	327.471
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	41.198	20.804	24.454
	Other Current Liabilities	0.000	0.000	0.000
	Provisions	44.171	42.217	28.866
Total Current Liabilities		85.369	63.021	53.320
Net Current Assets		659.908	364.905	274.151
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1470.670	1050.401	921.226

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	1564.356	1264.443	1407.515
		Other Income	29.974	33.256	27.554
		TOTAL (A)	1594.330	1297.699	1435.069
Less	EXPENSES
		Consumption Materials Changed Inventories	1186.155	952.171
		Manufacturing Services Costs	134.429	108.778
		Employee related Expenses	45.386	32.588	1275.617
		Administrative, Selling and Others Expenses	21.202	13.748
		Prior Period Items	0.000	(5.485)
		TOTAL (B)	1387.172	1101.800	1275.617
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		207.158	195.899	159.452
Less	FINANCIAL EXPENSES (D)		70.135	58.333	62.373
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		137.023	137.566	97.079
Less/ Add	DEPRECIATION/ AMORTISATION (F)		41.266	41.685	40.938
	PROFIT BEFORE TAX (E-F) (G)		95.757	95.881	56.141
Less	TAX (H)		(1.876)	19.162	10.012
	PROFIT AFTER TAX (G-H) (I)		97.633	76.719	46.129
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		84.248	34.884	11.110
Less	APPROPRIATIONS
		Transfer to General Reserve		15.000	10.000
		Proposed Dividend	27.671	10.560	10.560
		Tax on Dividend		1.795	1.795
	BALANCE CARRIED TO THE B/S		154.210	84.248	34.884
	EARNINGS IN FOREIGN CURRENCY		58.394	126.875	NA
	IMPORTS
		Stores & Spares	1.059	0.222	NA
		Capital Goods	0.000	14.803	NA
	TOTAL IMPORTS		1.059	15.025	NA
	Earnings Per Share (Rs.)		369.82	290.60	174.73

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	6.12	5.91	3.21
Net Profit Margin (PBT/Sales)	(%)	6.12	7.58	3.99
Return on Total Assets (PBT/Total Assets}	(%)	6.88	8.72	5.82
Return on Investment (ROI) (PBT/Networth)		0.24	0.31	0.23
Debt Equity Ratio (Total Liability/Networth)		2.74	2.33	2.65
Current Ratio (Current Asset/Current Liability)		8.73	6.79	6.14

LOCAL AGENCY FURTHER INFORMATION

REVIEW OF OPERATIONS:

A. SPINNING DIVISION:

The Spinning Division has achieved good results. The Division has achieved a turnover of Rs.772.600 Millions.

B. SOLVENT, POWER & REFINERY DIVISIONS:

Because of low milling activity due to State Govt. Policy on procurement of paddy during the financial year, there was steep fall in production of Rice Bran and Rice Husk. As such there is a dip in production and income of the above divisions.

PROSPECTS FOR CURRENT YEAR:

The Plants are running satisfactorily. It is expected that the plants will run to 100% capacity utilization. The production can be reasonably expected to be fully sold out. All efforts are being made to improve sales realization and control costs. During the current year the new spinning unit under construction at Mortha village is expected to go into commercial production.

CONTINGENT LIABILITIES

a) Liability in respect of Income Tax matters under dispute not provided for Rs.0.459 Million (Previous Year Rs.0.459 Million).

b) Liability in respect of Central Excise duty on the clearances of Rice Bran Fatty Acid and Acid Oils during the period from March, 08 to January, 10 not provided for Rs.23.119 Millions as it is stayed. (Previous Year Rs.22.473 Millions)

FORM 8:

Corporate identity number of the company	U15140AP1974PLC001699
Name of the company	GOWTHAMI SOLVENT OILS LIMITED
Address of the registered office or of the principal place of business in India of the company	Pydiparru, Post Box No.7,Tanuku, West Godavari District, Andhra Pradesh, India gowthamisolvent@gowthami.com
This form is for	Modification of charge
Charge identification number of the modified	90262283
Type of charge	Book debts Movable property (not being pledge)
Particular of charge holder	Andhra Bank Tanuku Branch, R. P. Road, Tanuku – 534211, Andhra Pradesh, India bmelr554@andhrabank.co.in
Nature of description of the instrument creating or modifying the charge	Composite Agreement
Date of instrument Creating the charge	16/05/2011
Amount secured by the charge	Rs.440.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest OCC: Finer Rate of interest at Base Rate + 2.75% per annum i.e., 12.25% presently Terms of Repayment Repayable on demand Margin PC: 10.00% on RM, WIP, FGs OCC: 25.00% on raw material, semi finished and finished goods, 25.00% on book debts ILC/FLC - 15.00% on cash margin BG - 10.00% on cash margin and for disputed liabilities 100.00% margin Extent and Operation of the charge Charge operates full on securities.
Short particulars of the property charged	Hypothecation of Raw Material, Semi Finished, Finished goods, Book Debts and Receivables of the Company both present and future for (Solvent Division) Hypothecation of Raw Material, Semi Finished, Finished goods, Stores, Spares, Book Debts and Receivables of the Company both present and future for (Textiles Division)
Particulars of the present modification	OCC (Solvent Division) - Rs.70.000 Millions OCC (Textile Division) - Rs.250.000 Millions ILC/FLC (DA/DP) - Rs.60.000 Millions Bank Guarantee (Inland) - Rs.60.000 Millions Total amount secured by the Charge is Rs.440.000 Millions (Details of the limits is shown in Composite Agreement)

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Furniture and Fixture

· Office Equipment

· Vehicles

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.51.05
UK Pound	1	Rs.81.09
Euro	1	Rs.67.39

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		48

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.