This paper is an extension of a paper that suggested Grounded Ontology (GO) as a new methodology of ontology engineering. It adds an example of application of first two stages of GO Methodology to create an initial (seed) ontology to a summarized discussion from another paper on Grounded Ontology (GO) Methodology. Its efficacy in deriving entities and their relationships directly from the data along with ontologization is illustrated through a step-by-step example. The GO Methodology proposes that ‘a domain ontology developed using text-coding technique contributes in conceptualizing and representing state-of-the-art as given by published research in a particular domain.’ The motivation behind GO Methodology is to make the state-of-the art available to the researchers of a particular domain and help them come to common understanding through an ontology. Ontology developer are given a leading role by the existing ontology engineering methods. This has led to a general observation regarding dominating influence of personal perspective of ontology developer and/or expert on the resultant ontology. However, if coding of data is done such that entities and their relationships are directly obtained from and are closely linked to the text of the published research, the resultant ontology stands a better chance of being unbiased. Therefore, a new methodology (Grounded Ontology - GO) was proposed for deriving an ontology directly from text of published research. Such and ontology will not only help in bringing forth the research already done by other but can also help in highlighting areas where new research efforts are needed.