1. Summary Information
|
|
|
Country |
India |
|
Company Name |
GRINDWELL NORTON
LIMITED |
Principal Name 1 |
Mr. M. M. Narang |
|
Status |
Good |
Principal Name 2 |
Mr. J P Floris |
|
|
|
Registration # |
11-008163 |
|
Street Address |
5th
Level, Leela Business Park, Andheri- Kurla Road, Marol, Andheri East,
Mumbai-400059, Maharashtra, India |
||
|
Established Date |
31.07.1950 |
SIC Code |
-- |
|
Telephone# |
91-22-40212121 |
Business Style 1 |
Manufacturer |
|
Fax # |
91-22-40212102 |
Business Style 2 |
Exporter |
|
Homepage |
-- |
Product Name 1 |
Bonded Abrasives |
|
# of employees |
-- |
Product Name 2 |
Coated Abrasive Products |
|
Paid up capital |
Rs.
276800000/- |
Product Name 3 |
Super Abrasives |
|
Shareholders |
Promoter and Promoter Group – 58.63% Public Shareholding – 41.37 % |
Banking |
Central Bank of
India |
|
Public Limited Corp. |
YES |
Business Period |
61 Years |
|
IPO |
YES |
International Ins. |
--- |
|
Public |
YES |
Rating |
A
(67) |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
Associates |
USA |
ABC Superabrasives |
-- |
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2011 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
2,169,392,000 |
Current Liabilities |
1,848,763,000 |
|
Inventories |
1,247,930,000 |
Long-term Liabilities |
-- |
|
Fixed Assets |
1,868,377,000 |
Other Liabilities |
90,778,000 |
|
Deferred Assets |
000 |
Total Liabilities |
1,939,541,000 |
|
Invest& other Assets |
695,731,000 |
Retained Earnings |
3,765,089,000 |
|
|
|
Net Worth |
4,041,889,000 |
|
Total Assets |
5,981,430,000 |
Total Liab. & Equity |
5,981,430,000 |
|
Total Assets (Previous Year) |
5,279,154,000 |
|
|
|
P/L Statement as of |
31.03.2011 |
(Unit: Indian Rs.) |
|
|
Sales |
7,807,431,000 |
Net Profit |
856,286,000 |
|
Sales(Previous yr) |
274,165,000 |
Net Profit(Prev.yr) |
875,057,000 |
MIRA
INFORM REPORT
|
Report Date : |
26.07.2011 |
IDENTIFICATION DETAILS
|
Name : |
GRINDWELL NORTON LIMITED |
|
|
|
|
Registered Office : |
5th Level, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.03.2011 |
|
|
|
|
Date of Incorporation : |
31.07.1950 |
|
|
|
|
Com. Reg. No.: |
11-008163 |
|
|
|
|
Capital Investment
/ Paid-up Capital : |
Rs.276.800 Millions |
|
|
|
|
CIN No.: [Company
Identification No.] |
L26593MH1950PLC008163 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
MUMG00425F NGPG00974B NGPG00471C |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AAACG8725B |
|
|
|
|
Legal Form : |
Public Limited Liability Company. The company’s shares are listed on
stock exchange. |
|
|
|
|
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 |
|
|
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 |
|
Maximum Credit Limit : |
USD 16170000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
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) |
|
|
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 : |
5th Level, |
|
Tel. No.: |
91-22-40212121 |
|
Fax No.: |
91-22-40212102 |
|
E-Mail : |
|
|
|
|
|
Factory 1 : |
Located at: Mora-Nad-Karanja, District Raigad - 400 704, |
|
Tel No.: |
91-22-27230021 / 22 / 23 / 24 / 25 / 26 |
|
|
|
|
Factory 2 : |
|
|
Tel No.: |
91-80-28471731 / 2 / 3 / 4 / 5 / 7 |
|
Fax No.: |
91-80-28471736 |
|
|
|
|
Factory 3 : |
|
|
Tel No.: |
91-8574-275731-5 |
|
Fax No.: |
91-8574-275736 |
|
|
|
|
Factory 4 : |
G-51, Butibori Industrial Area, Village Tembhari, Taluka
Hingna, District |
|
Tel No.: |
91-7103-262751 / 2 / 3 |
|
Fax No.: |
91-7103-262451 |
|
|
|
|
Factory 5 : |
Located at: Bated, District Solan, Himachal Pradesh |
DIRECTORS
As on 29.07.2010
|
Name : |
Mr. J P Floris |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. A C. Chakraborty |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. M. M. Narang |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. M A Chupin |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. J T Crowe |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. P Shah |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. P Millot |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. S Salgaocar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. A Y Mahajan |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. Ja A J Pereira |
|
Designation : |
Alternate Director to Ms. M A Chupin |
|
|
|
|
Name : |
Mr. N D Sidhva |
|
Designation : |
Director Emeritus |
KEY EXECUTIVES
|
SENIOR MANGEMENT: |
|
|
Name : |
Mr. J A J Pereira |
|
Designation : |
Corporate Services |
|
|
|
|
Name : |
Mr. K K Prasad |
|
Designation : |
Ceramics and Plastics |
|
|
|
|
Name : |
Mr. M A Puranik |
|
Designation : |
Finance and IT |
|
|
|
|
Name : |
Mr. M Ramarathnam |
|
Designation : |
Project and EHS |
|
|
|
|
Name : |
Mr. N. Sreedhar |
|
Designation : |
Abrasives |
|
|
|
|
Name : |
Mr. K. Visweswaran |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2011
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
(1) Indian |
|
|
|
Individuals/ Hindu Undivided Family |
3894030 |
7.03 |
|
Bodies Corporate |
150000 |
0.27 |
|
|
|
|
|
(2) Foreign |
|
|
|
Bodies Corporate |
28414000 |
51.33 |
|
|
|
|
|
(B) Public
Shareholding |
|
|
|
(1) Institutions |
|
|
|
Mutual Funds / UTI |
3621184 |
6.54 |
|
Financial Institutions/ Banks |
13800 |
0.02 |
|
Insurance Companies |
168000 |
0.30 |
|
Foreign Institution Investors |
1012030 |
1.83 |
|
|
|
|
|
(2)
Non-Institutions |
|
|
|
Bodies Corporate |
1731325 |
3.13 |
|
|
|
|
|
Individuals |
|
|
|
Individual Shareholders holding nominal share capital upto Rs. 0.100
Million |
5306516 |
9.59 |
|
Individual shareholders holding nominal share capital in excess of Rs.
0.100 Million |
10244609 |
18.51 |
|
Any Other – NRI |
144618 |
0.26 |
|
Trusts |
659888 |
1.19 |
|
|
|
|
|
Total |
55360000 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer and Exporter of Bonded Abrasives, Coated Abrasive Products,
Super Abrasives, Abrasive Grains and Refractories. |
||||||||
|
|
|
||||||||
|
Products : |
|
PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Bonded Abrasives |
Tons |
18427.00 |
13956.19 |
|
Coated Abrasives |
Sqm. In Million |
5.98 |
3.74 |
|
Abrasive Grains |
Tons |
18000.00 |
13166.32 |
|
Refractories |
Tons |
1600.00 |
3085.69* |
|
Others |
|
|
|
* 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 |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Kalyaniwalla and Mistry Chartered Accountant |
|
|
|
|
Holding Company : |
Compagnie de Saint-Gobain |
|
|
|
|
Subsidiary Company: |
Saint-Gobain Ceramic Materials Bhutan Private Limited |
|
|
|
|
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-Gobain 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 31.03.2011
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 Society de Participations Finanieres et Industriellers
(Formerly Saint-Gobain Promotion et Participations internationals) and 150000
Equity Shares of Rs. 5/- each are held by Saint-Gobain Glass India Limited, the
subsidiaries of Companies de Saint-Gobain, the ultimate holding company.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.12.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
276.800 |
276.800 |
276.800 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
3765.089 |
3296.501 |
2810.836 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
4041.889 |
3573.301 |
3087.636 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
0.000 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
0.000 |
0.000 |
0.000 |
|
|
DEFERRED TAX LIABILITIES |
90.778 |
80.837 |
43.667 |
|
|
|
|
|
|
|
|
TOTAL |
4132.667 |
3654.138 |
3131.303 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
1868.377 |
1823.390 |
1577.763 |
|
|
Capital work-in-progress |
159.614 |
68.224 |
234.920 |
|
|
INVESTMENT |
536.117 |
501.298 |
627.197 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1247.930
|
935.501
|
1008.409
|
|
|
Sundry Debtors |
920.273
|
849.877
|
707.049
|
|
|
Cash & Bank Balances |
936.898
|
819.599
|
165.178
|
|
|
Other Current Assets |
2.533
|
2.473
|
2.047
|
|
|
Loans & Advances |
309.688
|
278.792
|
226.966
|
|
Total
Current Assets |
3417.322
|
2886.242
|
2109.649 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
588.001
|
576.271
|
415.279 |
|
|
Current Liabilities |
722.978
|
561.365
|
577.528 |
|
|
Provisions |
537.784
|
487.380
|
425.419 |
|
Total
Current Liabilities |
1848.763
|
1625.016
|
1418.226 |
|
|
Net Current Assets |
1568.559
|
1261.226
|
691.423 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
4132.667 |
3654.138 |
3131.303 |
|
PROFIT
& LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.12.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
7807.431 |
7023.609 |
5021.164 |
|
|
|
Other Income |
274.165 |
243.139 |
221.445 |
|
|
|
TOTAL (A) |
8081.596 |
7266.748 |
5242.609 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Raw Material Consumed |
3024.954 |
2503.414 |
1893.778 |
|
|
|
Purchase Trading Goods |
676.317 |
524.008 |
377.125 |
|
|
|
Manufacturing Administration and selling
Expenses |
3125.607 |
2745.769 |
2185.129 |
|
|
|
Debts and Advances (Written Back) Provided
(Net) |
4.751 |
0.103 |
(5.438) |
|
|
|
Increase/(Decrease) in Finished Goods |
(172.927) |
90.032 |
(144.804) |
|
|
|
TOTAL (B) |
6658.702 |
5863.326 |
4305.790 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1422.894 |
1403.422 |
936.819 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
2.823 |
2.548 |
6.055 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1420.071 |
1400.874 |
930.764 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
163.185 |
177.858 |
139.608 |
|
|
|
|
|
|
|
|
|
Add |
EXCEPTIONAL ITEM |
0.000 |
77.211 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
1256.886 |
1300.227 |
791.156 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
400.600 |
425.170 |
241.102 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
856.286 |
875.057 |
550.054 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
500.000 |
350.000 |
250.002 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
370.242 |
337.729 |
190.982 |
|
|
|
Dividend |
332.160 |
332.160 |
221.440 |
|
|
|
Tax on Dividend |
370.242 |
55.168 |
37.634 |
|
|
BALANCE CARRIED
TO THE B/S |
600.000 |
500.000 |
350.000 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of goods on FOB basis |
710.764 |
776.415 |
676.259 |
|
|
|
Freight on Exports |
7.176 |
5.950 |
6.221 |
|
|
|
Insurance on Exports |
0.005 |
0.200 |
0.600 |
|
|
|
Commission |
1.885 |
2.468 |
9.108 |
|
|
|
Export of Services |
80.468 |
49.201 |
23.480 |
|
|
|
Other Income |
22.910 |
11.711 |
13.056 |
|
|
TOTAL EARNINGS |
823.208 |
845.945 |
728.724 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
|
1675.872 |
1381.819 |
|
|
|
Spares Parts |
NA |
5.751 |
5.096 |
|
|
|
Capital Goods |
|
61.942 |
39.567 |
|
|
|
Others |
|
34.360 |
35.326 |
|
|
TOTAL IMPORTS |
NA
|
1777.925 |
1461.808 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
15.47 |
15.81 |
9.94 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.12.2008 |
|
PAT / Total Income |
(%) |
10.59 |
12.04
|
10.49
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
16.09 |
18.51
|
15.76
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
23.77 |
27.61
|
21.46
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.31 |
0.36
|
0.26
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.45 |
0.45
|
0.46
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.84 |
1.78
|
1.49
|
LOCAL AGENCY FURTHER INFORMATION
OPERATIONS
The year was an excellent one for the Company with net sales and profit before
tax increasing by a record 39% and by 29% respectively on an annualized basis.
The record increase in sales was partly due to the sustained growth of the
economy, partly due to re-stocking and partly due to gains in market share.
Margins in all businesses were under pressure as severe cost pushes could only
be partially offset by price increases.
ABRASIVES :
The Abrasives business registered an all-time high growth of 41% over the
previous period (on an annualized basis). This was mainly due to increase in
domestic demand (as most of the end user industries witnessed strong growth),
higher sales of new products and in new markets and gains in market share.
Higher volume and higher prices (increases effected from time to time) helped
the business post a 16% growth in the Operating Profit over the previous
15-month period (45% growth on an annualized basis).
CERAMICS AND
PLASTICS :
Significant growth in Steel, Crucible and Metallurgical markets and
improved availability of silicon carbide crude from the Company’s subsidiary in
Bhutan helped the Silicon Carbide business to grow in volumes by more than 40%.
Steep increase in power cost adversely affected the profitability of the business.
The High Performance Refractories business and the Performance Plastics
business also registered strong growth with the introduction of new products
and with the penetration of new markets even as business with the existing
customers grew
FUTURE PROSPECTS :
The Indian economy is expected to witness sustained growth in 2011-12,
though industrial growth may be moderate. The rise in input prices and
inflation, in general, are the main concerns. The Company is well positioned to
benefit from growth. With record volume growth in 2010-11, in some businesses,
capacities have become a constraint. The Company will step up its capital
expenditure plans in the current year.
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
healthier and safer work place at all plant locations and work sites. 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 Environment, Health and Safety at all its sites.
DIRECTORS
In accordance with the requirements of the Companies Act, 1956 and the
Articles of Association of the Company, Ms. Marie-Armelle Chupin, Mr.
Jean-Pierre Floris and Mr. Patrick Millot retire by rotation and, being
eligible, offer themselves for re-appointment as Directors of the Company.
GENERAL REVIEW
Subject (GNO) is one of the subsidiaries of Companies de Saint-Gobain
(Saint-Gobain), a transnational Group, with its headquarters in Paris and with
sales of € 40.12 billion in 2010. Saint-Gobain’s businesses fall into five
broad sectors of activity: Construction Products, Flat Glass, Packaging, Building
Distribution and High Performance Materials. GNO’s businesses are a part of the
High Performance Materials sector of activity. In GNO, the businesses are
divided into two Segments :
1. Abrasives
2. Ceramics and Plastics
BUSINESS
ENVIRONMENT
The year saw demand buoyancy and sustained growth in most sectors of the
economy. Re-stocking also contributed to the demand and volume growth in
2010-11. Recent months have seen a moderation of growth in certain sectors;
this is partly due to the high base effect. Looking ahead, while overall
economic growth is expected to be sustained, some sectors may witness a
slowdown in the first half of 2011-12. The main concern is inflation, in
general, and the continuous rise in input prices, in particular.
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,
cuttingoff, 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 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, GNO offers the widest range of indigenously
made products – conventional Coated Abrasives (fiber discs, rolls, belts,
specialties, etc.) and Non-Woven abrasives. GNO also brings the Indian market,
certain special products imported from various Saint-Gobain affiliate companies
around the world. GNO has always been at the forefront in introducing
technologically advanced indigenous products. The Abrasives business has four
manufacturing sites: Mora (near Mumbai), Bangalore, Nagpur and Bated in
Himachal Pradesh. All the sites are certified under ISO 9001:2000, ISO
14001:2004 and OHSAS 18001:1999.
INDUSTRY
The Abrasives 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 China are present in many
categories, particularly, at the low end. Some of the players from Europe and
Japan have marketing networks to service mainly the precision grinding market.
In the case of Coated Abrasives, some international players have set up
conversion facilities. Also power tool makers are now focusing on developing
their accessories business which includes Thin Wheels and some Coated
Abrasives. The market, over a period of time, has become price sensitive. Key
success factors are quality,
DEVELOPMENT AND
OUTLOOK
Saint-Gobain is the world leader in 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 from being a part of such an
organization, in terms of access to all developments in products and process
technology, sourcing of products and development of exports.
The year witnessed buoyant domestic demand (as many end-users, led by
Auto, registered double-digit growth) resulting in significant increase in volumes.
Besides market growth, a part of the volume increase was on account of
re-stocking. Export markets remained subdued. Several new products were
introduced during the year even as inroads were made into new markets. Overall,
sales grew by 41% over the previous period (on an annualized basis). Besides
volume increases on account of market growth, higher prices and gains in market
share contributed to the record increase in sales. The other defining feature
of the year was the high inflation led by the rise in input prices (raw
materials and energy, in particular) and the resultant, pressure on margins.
The business succeeded in improving price realization during the year; this
partially offset the impact of the high cost increases.
During the year, the Abrasives business launched a major initiative
called “The Next Level” aimed at building a Customer-Centric organization which
will strive to provide Innovative Solutions, Consistent Quality and
Best-in-Class Service. Besides, GNO (along with other Group companies) has
taken steps to implement a World Class Manufacturing programmer across all its
sites. In addition, systematic efforts have been made to improve safety
standards and plant operating conditions. Looking ahead, even though there may
be a slowdown in some sectors in the early part of the year, overall, the
economy should see sustained growth. Besides growing volumes, the business will
focus on increasing prices to combat rising costs. Implementing major capacity
expansion programmers will be a priority.
OVERALL
PERFORMANCE :
For the year ended 31st March 2011, GNO sales have increased by over 39%
on an annualized basis. Despite a significant increase in volumes and improved
price realization, margins came under pressure in most businesses and, hence,
the increase in operating profit was 28% on an annualized basis.
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. 44.41 |
|
|
1 |
Rs. 72.49 |
|
Euro |
1 |
Rs. 63.86 |
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 |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.