MIRA
INFORM REPORT
|
Report Date : |
23.04.2011 |
IDENTIFICATION DETAILS
|
Name : |
GRINDWELL NORTON LIMITED |
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Registered Office : |
5th Level, |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
31.07.1950 |
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Com. Reg. No.: |
11-008163 |
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CIN No.: [Company
Identification No.] |
L26593MH1950PLC008163 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMG00425F NGPG00974B NGPG00471C |
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PAN No.: [Permanent
Account No.] |
AAACG8725B |
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Legal Form : |
Public Limited Liability Company. The company’s shares are listed on
stock exchange. |
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Line of Business : |
Manufacturer and Exporter of Bonded Abrasives, Coated Abrasive
Products, Super Abrasives, Abrasive Grains and Refractories. |
RATING & COMMENTS
|
MIRA’s Rating : |
A (67) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavorable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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Maximum Credit Limit : |
USD 14290000 |
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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 Saint Gobain group. It is a well established and a
reputed company having fine track. Financial position of the company appears
to be sound. Trade relations are reported as fair. Business is active.
Payments are reported to be regular and as per commitments. The company can
be considered 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 – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
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|
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
|
Registered Office : |
5th Level, |
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Tel. No.: |
91-22-40212121 |
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Fax No.: |
91-22-40212102 |
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E-Mail : |
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Factory 1 : |
Located at: Mora-Nad-Karanja, District Raigad - 400 704, |
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Tel No.: |
91-22-27230021 / 22 / 23 / 24 / 25 / 26 |
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Factory 2 : |
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Tel No.: |
91-80-28471731 / 2 / 3 / 4 / 5 / 7 |
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Fax No.: |
91-80-28471736 |
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Factory 3 : |
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Tel No.: |
91-8574-275731-5 |
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Fax No.: |
91-8574-275736 |
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Factory 4 : |
G-51, Butibori Industrial Area, Village Tembhari, Taluka
Hingna, District |
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Tel No.: |
91-7103-262751 / 2 / 3 |
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Fax No.: |
91-7103-262451 |
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Factory 5 : |
Located at: Bated, District Solan, Himachal Pradesh |
DIRECTORS
As on 29.07.2010
|
Name : |
Mr. J P Floris |
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Designation : |
Director |
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Name : |
Mr. A C. Chakraborty |
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Designation : |
Chairman |
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Name : |
Mr. M. M. Narang |
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Designation : |
Director |
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Name : |
Mr. M A Chupin |
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Designation : |
Director |
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Name : |
Mr. J T Crowe |
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Designation : |
Director |
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Name : |
Mr. O Duval |
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Designation : |
Director |
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Name : |
Mr. P Shah |
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Designation : |
Director |
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Name : |
Mr. P Millot |
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Designation : |
Director |
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Name : |
Mr. B S Raut |
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Designation : |
Director |
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Name : |
Mr. S Salgaocar |
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Designation : |
Director |
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Name : |
Mr. A Y Mahajan |
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Designation : |
Managing Director |
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Name : |
Mr. Ja A J Pereira |
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Designation : |
Alternate Director to Ms. M A Chupin |
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Name : |
Mr. N D Sidhva |
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Designation : |
Director Emeritus |
KEY EXECUTIVES
|
SENIOR MANGEMENT: |
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Name : |
Mr. J A J Pereira |
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Designation : |
Corporate Services |
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Name : |
Mr. K K Prasad |
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Designation : |
Ceramics and Plastics |
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Name : |
Mr. M A Puranik |
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Designation : |
Finance and IT |
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Name : |
Mr. M Ramarathnam |
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Designation : |
Project and EHS |
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Name : |
Mr. H. Bhosale |
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Designation : |
Human Resources |
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Name : |
Mr. N. Sreedhar |
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Designation : |
Abrasives |
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Name : |
Mr. K. Visweswaran |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2010
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
(1) Indian |
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Individuals/ Hindu Undivided Family |
3894030 |
7.03 |
|
Bodies Corporate |
150000 |
0.27 |
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|
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(2) Foreign |
|
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Bodies Corporate |
28414000 |
51.33 |
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(B) Public
Shareholding |
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(1) Institutions |
|
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Mutual Funds / UTI |
3603584 |
6.51 |
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Financial Institutions/ Banks |
12690 |
0.02 |
|
Insurance Companies |
168000 |
0.30 |
|
Foreign Institution Investores |
575668 |
1.04 |
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|
|
|
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(2)
Non-Institutions |
|
|
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Bodies Corporate |
1809119 |
3.27 |
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Individuals |
|
|
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Individual Shareholders holding nominal share capital upto Rs. 0.100
Million |
5630477 |
10.17 |
|
Individual shareholders holding nominal share capital in excess of Rs.
0.100 Million |
10293402 |
18.59 |
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Any Other – NRI |
149142 |
0.27 |
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Trusts |
659888 |
1.19 |
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|
|
|
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Total |
55360000 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer and Exporter of Bonded Abrasives, Coated Abrasive
Products, Super Abrasives, Abrasive Grains and Refractories. |
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Products : |
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PRODUCTION STATUS
As
on 31.03.2010
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Bonded Abrasives |
Tons |
17503.60 |
12956.75 |
|
Coated Abrasives |
Sqm. In Million |
5.40 |
3.55 |
|
Abrasive Grains |
Tons |
18000.00 |
14057.95 |
|
Refractories |
Tons |
1600.00 |
2315.08 |
* Includes products manufactured by manual
processing which has no Installed Capacity.
GENERAL INFORMATION
|
Bankers : |
·
Central Bank of ·
Corporation Bank ·
ICICI Bank Limited ·
State Bank of |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Kalyaniwalla and Mistry Chartered Accountant |
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Holding Company : |
Compagnie de Saint-Gobain |
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Subsidiary Company: |
Saint-Gobain Ceramic Materials Bhutan Private Limited |
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Associates: |
·
ABC Superabrasives, ·
Certainteed Corporation, ·
Kure-Norton Company Limited, ·
Norton Abrasive Pty Limited ·
PT Saint – Gobain Norton Hamplas, ·
PT Saint- Gobain Winter Diamas, ·
Saint-Gobain PAM ( ·
Saint Gobain Abrasives Limited ·
L.M Van Moppes Diamond Tools Private Limited ·
Saint-Gobain ·
Saint-Gobain Abrasifs, France ·
Saint-Gobain Abrasives International Trading ( ·
Saint-Gobain Barasive Inc, ·
Saint-Gobain Abrasive (Aust) Pty Limited ·
Saint-Gobain Abrasive ( ·
Saint-Gobain ·
Saint-Gobain ·
Saint-Gobain Abrasives GMBH (CORA) ·
Saint-Gobain Abrasives International Trading (HK)
Limited ·
Saint- Gobain Abrasives ·
Saint-Gobain Abrasives P. Z.O.O ·
Saint-Giobain Abrasives ( ·
Saint-Gobain Abrasives ·
Saint-Gobain Abrasives Limited, ·
Saint-Gobain Abrasive ·
Saint-Gobain Abrasive SPZ ·
Saint-Gobain Abrasive (Pty) Limited, ·
Saint – ·
Saint-Gobain Abrasive S.P.A (Micromold) ·
Saint-Gobain Abrasive S.P.A (Ral-sud) ·
Saint-Gobain Abrasive Ltda. ·
Saint-Gobain Abrasive SA, ·
Saint-Gobain Abrasive SA, ·
Saint-Gobain Abrasive ·
Saint-Gobain Advanced Materilas ( ·
Saint-Gobain Cera Mat ( ·
Saint-Gobain Ceramic Materials AS, ·
Saint-Gobain Ceramic ·
Saint-Gobain Ceramic Industries, S.A ·
Saint-Gobain Crystals and Detectors India Limited ·
Saint-Gobain Diamantwerkzeuge GMBH and Company ·
Saint-Gobain ·
Saint-Gobain Performance plastics, ·
Saint-Gobain Performance Plastics, ·
Saint-Gobain High Performance ·
Saint-gobain Advanced Material (M) SDN BHD ·
Saint- Gobain Glass India Limited ·
Saint-Gobain Industrial ·
Saint-Gobain Ceramics Inc, ·
Saint-Giobain Industrtiekeramik Dusseldorf GMBH ·
Saint-Gobain Materials ·
Saint-Gobain Materials ·
Saint-Gobain Sekurit India Limited ·
Saint-Gobain Seva Engineering India Limited ·
Saint-Gobain Seva, France ·
Saint-Gobain Universal Superabrasives, Inc ·
Saint-Gobain Weber ( ·
Savio Refractories ·
SEPR Refractories India Limited ·
SEPR, France ·
SG Performance Plastics ·
SG Performance Plastics Korea, Company Limited ·
SG Performance PlasticsPampus GMBH ·
SG Performance Plastics ·
SG Performance Plastics, ·
SG Performance Plastics, ·
SG Performance Plastics, Chaineux, Belduim ·
SG Performance Plastics, ·
SG Performance Plastics, ·
SG Performance ·
SG Performance Plastics, ·
SG Performance Plastics, ·
SG Performance Plastics, ·
SG Performance Plastics, ·
SG Performance Plastics, Garden ·
SG Performance Plastics ( ·
SG Advanced Ceramics (Shanghi) Company Limited ·
Saint-Gobain
Tech Fab Hongfa ( ·
SG Performance Plastics KK, Japan ·
Universal Superabrasives, ·
Saint-Gobain Abrasives (Sea) Pte. Limited ·
Saint-Gobain Abrasives, ·
Saint-Gobain Abrasives ·
Saint-Gobain Ceramic Materilas ( ·
Saint-Gobain Technical Fabrics, S.A ·
Saint-Gobain Ceramic Materials (Liyanguange)
Company Limited, ·
Saint-Gobain Gelva, BV ·
Saint-Gobain Vibros S.A |
|
|
|
|
Fellow Subsidiaries : |
·
Saint-Gobain Abrasives Inc., ·
Societe de Participations Financiers et |
CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
56000000 |
Equity Shares |
Rs. 5/- each |
Rs.280.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
55360000 |
Equity Shares |
Rs. 5/- each |
Rs.276.800
Millions |
Notes:
Of the above Equity Shares:
a)
280000 Equity Shares of Rs.
5/- each were allotted as fully paid pursuant to a contract without payment
being received in cash.
b)
46911440 Equity Shares of
Rs. 5/- each were allotted as fully paid Bonus Shares by capitalising Share
Premium, Profits and Reserves.
c)
14817760 Equity Shares of
Rs. 5/- each are held by Saint-Gobain Abrasives Inc, 13596240 Equity Shares of
Rs. 5/- each are held by Societe de Participations Finanieres et Industriellers
(Formerly Saint-Gobain Promotion et Participations internationales) and 150000
Equity Shares of Rs. 5/- each are held by Saint-Gobain Glass India Limited, the
subsidiaries of Compagnie de Saint-Gobain, the ultimate holding company.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.12.2008 |
31.12.2007 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
276.800 |
276.800 |
276.800 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
3296.501 |
2810.836 |
2521.510 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
3573.301 |
3087.636 |
2798.310 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
0.000 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
22.680 |
|
|
TOTAL BORROWING |
0.000 |
0.000 |
22.680 |
|
|
DEFERRED TAX LIABILITIES |
80.837 |
43.667 |
38.580 |
|
|
TOTAL |
3654.138 |
3131.303 |
2859.570 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
1823.390 |
1577.763 |
1367.830 |
|
|
Capital work-in-progress |
68.224 |
234.920 |
223.870 |
|
|
|
|
|
|
|
|
INVESTMENT |
501.298 |
627.197 |
780.100 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
935.501
|
1008.409
|
702.070 |
|
|
Sundry Debtors |
849.877
|
707.049
|
824.540 |
|
|
Cash & Bank Balances |
819.599
|
165.178
|
215.570 |
|
|
Other Current Assets |
2.473
|
2.047
|
1.330 |
|
|
Loans & Advances |
278.792
|
226.966
|
239.230 |
|
Total
Current Assets |
2886.242
|
2109.649 |
1982.740 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
576.271
|
415.279 |
|
|
|
Current Liabilities |
561.365
|
577.528 |
1034.620 |
|
|
Provisions |
487.380
|
425.419 |
460.350 |
|
Total
Current Liabilities |
1625.016
|
1418.226 |
1494.970 |
|
|
Net Current Assets |
1261.226
|
691.423 |
487.770 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
3654.138 |
3131.303 |
2859.570 |
|
PROFIT
& LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.12.2008 |
31.12.2007 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
7023.609 |
5021.164 |
4408.280 |
|
|
|
Other Income |
243.139 |
221.445 |
215.660 |
|
|
|
TOTAL (A) |
7266.748 |
5242.609 |
4623.940 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Raw Material Consumed |
2503.414 |
1893.778 |
1578.250 |
|
|
|
Purchase Trading Goods |
524.008 |
377.125 |
312.110 |
|
|
|
Manufacturing Administration and selling
Expenses |
2745.769 |
2185.129 |
1930.510 |
|
|
|
Debts and Advances (Written Back) Provided
(Net) |
0.103 |
(5.438) |
6.830 |
|
|
|
Increase/(Decrease) in Finished Goods |
90.032 |
(144.804) |
(151.060) |
|
|
|
TOTAL (B) |
5863.326 |
4305.790 |
3676.640 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1403.422 |
936.819 |
947.300 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
2.548 |
6.055 |
2.910 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1400.874 |
930.764 |
944.390 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
177.858 |
139.608 |
121.810 |
|
|
|
|
|
|
|
|
|
Add |
Exceptional Item |
77.211 |
0.000 |
(770.000) |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
1300.227 |
791.156 |
1592.580 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
425.170 |
241.102 |
257.500 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
875.057 |
550.054 |
1335.080 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
350.000 |
250.002 |
NA |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
337.729 |
190.982 |
|
|
|
|
Dividend |
332.160 |
221.440 |
|
|
|
|
Tax on Dividend |
55.168 |
37.634 |
|
|
|
BALANCE CARRIED
TO THE B/S |
500.000 |
350.000 |
NA |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of goods on FOB basis |
776.415 |
676.259 |
|
|
|
|
Freight on Exports |
5.950 |
6.221 |
|
|
|
|
Insurance on Exports |
0.200 |
0.600 |
|
|
|
|
Commission |
2.468 |
9.108 |
|
|
|
|
Export of Services |
49.201 |
23.480 |
|
|
|
|
Other Income |
11.711 |
13.056 |
|
|
|
TOTAL EARNINGS |
845.945 |
728.724 |
NA |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
1675.872 |
1381.819 |
1016.370 |
|
|
|
Spares Parts |
5.751 |
5.096 |
3.740 |
|
|
|
Capital Goods |
61.942 |
39.567 |
46.660 |
|
|
|
Others |
34.360 |
35.326 |
89.630 |
|
|
TOTAL IMPORTS |
1777.925 |
1461.808 |
1156.400 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
15.81 |
9.94 |
10.21 |
|
QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Sales Turnover |
17686.100 |
1840.100 |
1917.100 |
|
Total Expenditure |
1498.400 |
1595.200 |
1655.100 |
|
PBIDT (Excl
OI) |
287.700 |
244.900 |
262.000 |
|
Other Income |
55.000 |
61.600 |
79.800 |
|
Operating
Profit |
342.700 |
306.500 |
341.800 |
|
Interest |
0.000 |
0.200 |
0.500 |
|
Exceptional
Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
342.700 |
306.300 |
341.300 |
|
Depreciation |
40.300 |
39.700 |
41.200 |
|
Profit
Before Tax |
302.400 |
266.600 |
300.100 |
|
Tax |
96.200 |
84.500 |
95.300 |
|
Reported PAT |
206.200 |
182.100 |
204.800 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
206.200 |
182.100 |
204.800 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.12.2008 |
31.12.2007 |
|
PAT / Total Income |
(%) |
12.04
|
10.49
|
28.87 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
18.51
|
15.76
|
36.13 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
27.61
|
21.46
|
47.53 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.36
|
0.26
|
0.57 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.45
|
0.46
|
0.54 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.78
|
1.49
|
1.33 |
LOCAL AGENCY FURTHER INFORMATION
OPERATIONS
The sharp deceleration of the economy witnessed in the last quarter of
2008 continued in the first half of 2009. The economy started reviving from the
middle of the year and industrial growth, in particular, accelerated from the
last quarter of 2009. In line with this, the Company’s sales witnessed a strong
recovery in the second half of 2009 and surged in the first quarter of 2010.
Consequently, on an annualized basis, net sales increased by 11.9%. Partly
because of this and partly because of higher price realization and lower costs
(especially, energy costs and expenses), there was a significant increase in
the Company’s operating profit (23% higher than 2008 on an annualized basis)
and margin (16.4% on annualized basis compared to 14.4% in 2008).
ABRASIVES
The period started with very weak demand conditions. But, the second
half of 2009 witnessed a strong and sustained recovery in domestic demand,
which continued in the first quarter of 2010. Consequently, on an annualized
basis, sales increased by 7.8%. Partly due to this as also on account of higher
price levels and lower costs, profits and profitability increased
significantly.
CERAMICS AND
PLASTICS
With business conditions improving as the year progressed and lower costs,
the Silicon Carbide business had an excellent year in terms of sales and
profits. While the High Performance Refractories business had a difficult year,
the Performance Plastics business saw a strong recovery in the latter part of
the year. The “wheeling charges” matter is still pending before the Honorable
Supreme Court. Based on an internal review of this long pending matter and on
legal advice, the provision of Rs. 77.211 millions has been reversed during the
period and is shown as an exceptional item in the financial statements.
FUTURE PROSPECTS
The strong growth of the economy witnessed in the last few months is
likely to be sustained. The Company is well placed to benefit from this growth.
The Company’s priorities have shifted from costs and cash to volumes
(penetrating new markets while strengthening position in existing markets).
ENVIRONMENT,
ENERGY CONSERVATION, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO
The Company is committed to ensure a clean and green, pollution free environment
as well as a healthy and safe work place at all plant locations and work sites.
In January 2010, the new Abrasives plant in Himachal Pradesh having been
certified under Integrated Management System (ISO and OHSAS), all the plants of
the Company are certified under ISO 14001:2004 as well as OHSAS 18001:1999.
These Certifications are in recognition of the sustained efforts of the Company
in improving the Environment, Health and Safety at all its work sites. As
required by the Companies (Disclosure of Particulars in the Report of Board of
Directors) Rules, 1988, the relevant information pertaining to conservation of
energy, technology absorption and foreign exchange earnings and outgo as
required in the prescribed format is annexed (Annexure A) and forms part of
this Report.
DIRECTORS
Mr. R. K. Bilimoria and Mrs. D. S. Variava resigned as Directors of the
Company with effect from 5th June, 2009.
Mr. Bharat S. Raut, Director of the Company, will step down at the
conclusion of the forthcoming Annual General Meeting as he has opted not to
seek re-election due to personal reasons. The Board has resolved not to fill
the vacancy so caused at this time. The Board of Directors places on record its
deep appreciation of the valuable services and contribution made by Mr.
Bilimoria, Mrs. Variava and Mr. Raut during their tenure. Mr. M. M. Narang was
appointed as an additional director, with effect from 24th February, 2010. Mr.
Narang holds office upto the date of the forthcoming 60th Annual General
Meeting of the Company. As required under Section 257 of the Companies Act,
1956, the Company has received notice in writing from Members proposing the
candidature of Mr. Narang as Director of the Company. In accordance with the
requirements of the Companies Act, 1956 and Articles of Association of the
Company, Mr. A. C. Chakraborthi and Mr. J. T. Crowe retire by rotation and
being eligible, offer themselves for reappointment as Directors of the Company.
GENERAL REVIEW
Grindwell Norton Limited (GNO) is one of the subsidiaries of Compagnie
de Saint-Gobain (Saint-Gobain), a transnational Group, with its headquarters in
1. Abrasives
2. Ceramics and Plastics
BUSINESS ENVIRONMENT
After a dismal start in 2009 which saw contraction in several sectors,
the Indian economy rallied as the year progressed and witnessed sustained
growth in the second half of 2009 which strengthened further in 2010. The
Manufacturing (especially auto) and Mining sectors led economic growth in
2009-10. Looking ahead, improved demand conditions and a revival in investments
should sustain growth. Inflation remains the main concern.
- ABRASIVES SEGMENT REVIEW
The major sectors of activities within the Abrasives segment are Bonded
Abrasives (including Thin Wheels), Coated Abrasives (including Non-Woven) and
Super Abrasives.
PRODUCT AND PLANTS
Bonded Abrasives, most commonly in the form of wheels but also in other
shapes such as segment, sticks etc., are used for various applications ranging
from polishing or lapping to removing high quantities of materials. Bonded
Abrasives are used in precision applications such as lapping, honing,
super-finishing, race grinding, thread grinding, fluting, OD grinding, ID
grinding, surface grinding etc. They are also used in rough applications such
as snagging, cutting-off, burr removal, weld preparation etc. Bonded Abrasives
are used by a very large number of users. The variety is very high. GNO makes
over 15000 different products in a year. Super Abrasives are made of diamond
(synthetic or natural) or cubic boron nitride and are used in precision
applications. Coated Abrasives products are engineering composites comprising
of a backing, bond system and abrasive grains and are designed for material
removal and surface generation. Coated Abrasives products are available in
various shapes like discs, belts, rolls etc. to suit a wide gamut of
applications. Being a large manufacturer of coated abrasives in the country,
GNO offers the widest range of indigenously made products – right from
conventional coated abrasives (fiber discs, rolls, belts, specialties, etc.) to
Non Woven abrasives. Apart from bringing to the Indian market, high end
products imported from various Saint-Gobain affiliate companies around the
world, GNO has also been at the forefront in introducing technologically
advanced indigenous products. The Abrasives business has four manufacturing
sites: Mora, near Mumbai,
INDUSTRY
The industry currently has two major players, one of which is GNO. GNO has
a leadership position in several product-market segments. Apart from the major
players in the market, there are a few medium sized players and many small,
local players. Besides, imports from
ABRASIVES –
DEVELOPMENT AND OUTLOOK
Saint-Gobain is the undisputed world leader in Bonded Abrasives and Coated
Abrasives. Leadership is based on a strong product portfolio, a strong R and D
set-up with projects in both basic and applied areas and global reach, with
plants and marketing/sales organizations all over the world. GNO benefits by
being a part of such an organization, in terms of access to all developments in
products and process technology, sourcing of products and developing exports.
In the first half of 2009, there was a contraction in demand as a number of
important end-users cut back production. Recovery (led by auto) saw significant
improvement in demand conditions and sales during the second half of 2009; this
further strengthened in the first quarter of 2010. Profits and profitability
saw an increase as price realization improved and costs declined (energy costs
and expenses). GNO is putting in concerted efforts to make its manufacturing
plants world class. Apart from the on-going initiatives on cost reduction,
service improvement and productivity enhancement, systematic efforts have been
made to improve safety standards and plant operating conditions (including
ergonomics and environmental conditions). Looking ahead, the current situation
is much better than last year. Indications are that demand for much of 2010-11
will remain strong with increasing consumption in domestic markets and export
markets slowly reviving through the course of the year. Higher inflation (led
by energy costs which had declined in 2009) will, however, put pressure on
margins. The competitive situation will become tougher. GNO will focus on
strengthening its position in existing markets and penetrating new markets.
2. CERAMICS and
PLASTICS SEGMENT
The major businesses in this segment are:
(i) Silicon Carbide
(ii) High Performance
Refractories
GNO also converts and sells a range of Performance Plastics Products.
(i) SILICON
CARBIDE
Product and Plant
Silicon Carbide grains are used primarily as raw material in the
manufacture of abrasives, refractories and for stone polishing. Silicon Carbide
is manufactured at Tirupati in Andhra Pradesh. The Tirupati Plant is certified
under ISO 9001:2000, ISO 14001:2008 and OHSAS 18001:1999.
Industry
In the domestic market there are three major players (including GNO) of
Silicon Carbide. GNO is the market leader. This market is also catered to by
imports, mainly from
Development and
Outlook
The business is expected to see improved demand conditions driven by
increased growth in the Steel and Crucible industry. With the demand picking up
in the domestic market and the export market limping back to normalcy from the
economic slow down in 2008 and the first half of 2009, silicon carbide volumes
should witness growth in 2010-11. GNO will focus on volumes and on increasing
market share. Increase in the costs of raw petroleum coke and electricity will
put pressure on margins. GNO’s subsidiary in
(ii) HIGH
PERFORMANCE REFRACTORIES (HPR)
Product and Plant
Refractories are used for processing ferrous and nonferrous metals and
as kiln furniture to fire ceramic wares. They are also used as filtering media.
GNO manufactures mostly silicon carbide refractories. The plant is located at
Industry
The main customers are the Ceramic industry, Metallurgy – non-ferrous
(Copper and Aluminium), foundry and iron and steel, Energy and Heat treatment,
Wear resistant and Body Armor. In the domestic market there are two major
manufacturers (including GNO) for silicon carbide and mullite refractories. The
key requirements for success in the industry are technology and consistency in
quality. Manufacturing is relatively capital intensive. This, and technology,
are the barriers to entry. Development and Outlook In 2009, the business was
able to retain sales volume at 2008 level despite lower sales in the first
half. Metallurgy and Wear Resistant Applications (WRT)
business has seen growth and the trend is likely to continue. The
Ceramic and Energy markets were affected due to the economic slow down; these
sectors seem to have bottomed out and initial signs of revival are visible. New
business development partially compensated the effect of the slow down. In
2010, investments in power and metallurgical industries will be driving the
growth in Metallurgy and WRT market segments. Stabilized or slightly improved
situation in Ceramic and Energy sectors will provide stable sales.
FINANCIAL:
GNO’s financial management has always been governed by prudent policies,
based on conservative principles. Currently, GNO is a debt-free Company. GNO’s
foreign currency exposure on account of imports and exports has been appropriately
covered. GNO has well defined and structured treasury operations, with emphasis
on security.
OVERALL
PERFORMANCE
For the fifteen months period ended 31st March, 2010, GNO net sales have
increased by over 11.9% on an annualised basis. With price realization
improving and costs declining (led by energy costs and expenses) in the period
under review, operating profit increased by 23% on an annualized basis.
UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER ENDED 31.12.2010
|
Particulars |
Quarter Ended 31.12.2010 |
Nine months ended 31.12.2010 |
|
Income |
|
|
|
a) Net Sales / Income from Operations |
1917.100 |
6643.300 |
|
b) Other Operating Income |
0.000 |
0.000 |
|
Total Operating Income |
1917.100 |
6643.300 |
|
Expenditure |
|
|
|
(a) (Increase)/decrease in Stock in Trade |
(85.500) |
(203.300) |
|
(b) Consumption of Raw Materials |
759.100 |
2184.200 |
|
(c) Purchase of traded goods |
164.900 |
475.900 |
|
(d) Employees Cost |
202.700 |
618.100 |
|
Power and Fuel |
139.700 |
411.900 |
|
(e) Depreciation |
41.200 |
121.200 |
|
(f) Other Expenditure |
474.200 |
1261.900 |
|
Total Expenditure |
1696.300 |
4869.900 |
|
Profit / (Loss) From Operations before other Income Interest & Exceptional Items |
220.800 |
673.400 |
|
Other Income |
79.800 |
196.400 |
|
Profit/(Loss) before Interest and Exceptional items |
300.600 |
869.800 |
|
Interest |
0.500 |
0.700 |
|
Profit / (Loss) after interest before Exceptional items |
300.100 |
869.100 |
|
Exceptional Items |
0.000 |
0.000 |
|
Profit / (Loss) From
Ordinary activities before Tax |
300.100 |
869.100 |
|
Tax Expenses |
96.300 |
276.100 |
|
Net Profit/(Loss) From Ordinary activities after Tax |
204.800 |
693.000 |
|
Extraordinary Items |
0.000 |
0.000 |
|
Net Profit/(Loss) for the period |
204.800 |
693.000 |
|
Paid Up Equity Share Capital ( Face Value of the share Rs.10/- each ) |
276.800 |
276.800 |
|
Reserves (Excluding Revaluation Reserves) |
|
|
|
Public Shareholding |
|
|
|
After Extraordinary Items |
|
|
|
-Basic |
3.70 |
10.71 |
|
-Diluted |
3.70 |
10.71 |
|
Average of Public Share Holding |
|
|
|
- Number of Shares |
22901970 |
22901970 |
|
- Percentage of shareholding |
41.37% |
41.37% |
|
Promoters and Promoter group share holding |
|
|
|
b) Non-encumbered |
|
|
|
- Number of Shares |
32458030 |
32458030 |
|
- Percentage of Share (as a % of the total shareholding of promoter and promoter group) |
100% |
100% |
|
- Percentage of Share (as a % of the total share capital of the company) |
58.63% |
58.63% |
*Exceptional item Rs.77.200 million pertains to the reversal of disputed
power liability
Note :
Ř
The above financial results were reviewed by the
audit committee after a limited review by the statutory auditors of the company
and the board of directors approved the same at their meeting held on
25.01.2011
Ř
The company has not received any complaints during
the quarter.
Ř
Previous periods figures have been recast wherever
necessary.
SEGMENT WISE
REVENUE , RESULTS AND CAPITAL EMPLOYED
|
Particulars |
Quarter Ended 31.12.2010 |
Nine months ended 31.12.2010 |
|
Segment Revenue |
|
|
|
A] Abrasives |
1323.100 |
3826.500 |
|
B] Ceramics and Plastics |
580.300 |
1682.800 |
|
C] Others |
53.200 |
135.300 |
|
Total |
1956.600 |
5644.600 |
|
Less : inter segment revenue |
39.500 |
101.300 |
|
Net sales |
1917.100 |
5543.300 |
|
|
|
|
|
Segment results |
|
|
|
A] Abrasives |
197.600 |
615.800 |
|
B] Ceramics and Plastics |
82.000 |
244.000 |
|
C] Others |
11.100 |
24.000 |
|
Total |
290.700 |
883.800 |
|
Add: exceptional item* |
0.000 |
0.000 |
|
Less : Interest |
0.500 |
0.700 |
|
Less : other unallocable (income) / Expenditure (net) |
(9.900) |
14.000 |
|
|
|
|
|
Profit before tax |
300.100 |
869.100 |
|
|
|
|
|
Capital Employed |
|
|
|
(Segment assets less segment liabilities) |
|
|
|
A] Abrasives |
2223.600 |
2223.600 |
|
B] Ceramics and Plastics |
762.800 |
762.800 |
|
C] Others |
17.800 |
17.800 |
|
D] unallocated |
1120.200 |
1120.200 |
|
Total capital employed in segments. |
4124.400 |
4124.400 |
Contingent Liabilities not provided for in respect of:
|
Particulars |
31.03.2010 Rs. In Millions |
|
a. Excise Duty demands/ show cause notice
pending with the appropriate authorities and disputed by the company |
32.060 |
|
b. Sales Tax demand pending with the
Commissionerate/ High Court and disputed by the company |
24.104 |
|
c. Customes duty demands pending with
Appellate Tribunal and Disputed by the company |
0.000 |
|
d. Claims against the company under the
Labour Laws for disputed cases |
2.644 |
|
e. Demand raised by A.P Transco on surplus
units allocated, disputed by the
company and subjuice in High Court |
48.472 |
|
f. Guarantees given by Banks, of which Rs.
22.313 Millions (Previous year – Rs 33.967 Millions) is counter guaranteed by
the company |
22.313 |
|
g. Guarantees given on behalf of Subsidiary company |
83.908 |
|
h. Letters of Credit issued by banks on behalf
of the company |
1.983 |
|
i. Non-Agricultural Land Cess |
3.597 |
|
j. Other Claims against the Company not
acknowledged as debts |
4.824 |
FIXED ASSETS:
·
·
·
Building
·
Plant and Machinery
·
Computers
·
Furniture, Fixture and
Office Equipments
·
Vehicles
·
Computer Software
·
Goowill
·
Technical Know-how
·
Trade Marks
AS PER WEBSITE
Profile
Subject came into being when a technical collaboration in 1967 between
Grindwell and the then world leader in abrasives – Norton Company, USA, grew
into a financial collaboration in 1971. In 1990, Saint-Gobain acquired Norton
Company,
Today, GNO is
Headquartered in Mumbai, GNO has six
manufacturing locations (Mora near Mumbai,
In October’2006, GNO had the honor of featuring in Forbes Asia’s “Best Under a
Billion” list. It was one of just 23 Indian companies listed among the top 200
companies, with sales of under a billion dollars, in the Asia-Pacific Region,.
Mumbai Plant
GNO remains committed to the pursuit of
becoming a world-class company with world-class products and processes. It
strongly emphasis cutting-edge technology, restless innovation, customer
service and operational freedom. With the distinct advantage of being a part of
the Saint-Gobain and Norton family, GNO has access to the best of products and
technology, enabling us to provide tomorrow’s products to customers today.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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.44.30 |
|
|
1 |
Rs.72.92 |
|
Euro |
1 |
Rs.64.69 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--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 |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
67 |
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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.