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Grindwell Norton Ltd

BSE Code : 506076 | NSE Symbol : GRINDWELL | ISIN:INE536A01023| SECTOR : Capital Goods-Non Electrical Equipment |

NSE BSE
 
SMC down arrow

1,686.70

-112.20 (-6.24%) Volume 280564

26-Nov-2021 EOD

Prev. Close

1,798.90

Open Price

1,785.00

Bid Price (QTY)

0.00(0)

Offer Price (QTY)

1,686.70(5)

 

Today’s High/Low 1,786.65 - 1,677.60

52 wk High/Low 1,876.50 - 589.00

Key Stats

MARKET CAP (RS CR) 18640.27
P/E 64.48
BOOK VALUE (RS) 125.327547
DIV (%) 190
MARKET LOT 1
EPS (TTM) 26.11
PRICE/BOOK 13.433199965208
DIV YIELD.(%) 0.56
FACE VALUE (RS) 5
DELIVERABLES (%) 53.78
4

News & Announcements

17-Nov-2021

Grindwell Norton Ltd - Grindwell Norton Limited - Updates

03-Nov-2021

Grindwell Norton consolidated net profit rises 11.99% in the September 2021 quarter

03-Nov-2021

Grindwell Norton Ltd - Grindwell Norton Limited - Outcome of Board Meeting

01-Nov-2021

Grindwell Norton Ltd - Grindwell Norton Limited - Loss of Share Certificates

27-Oct-2021

Grindwell Norton to conduct board meeting

13-Oct-2021

Grindwell Norton appoints director

05-Aug-2021

Grindwell Norton director resigns

19-Jul-2021

Grindwell Norton to announce Quarterly Result

Corporate Actions

Bonus
Splits
Dividends
Rights
Capital Structure
Book Closure
Board Meeting
AGM
EGM
 

Financials

Income Statement

Standalone
Consolidated
 

Peers Comparsion

Select Company Name BSE Code NSE Symbol
Carborundum Universal Ltd 513375 CARBORUNIV
Cutfast Abrasive Tools Ltd - Merged 523898 CUTFASTABR
John Oakey & Mohan Ltd 40038
Orient Abrasives Ltd 504879 ORIENTABRA
Unidiam Abrasives Ltd 40199
Valley Abrasives Ltd 513715
Welcast Steels Ltd 504988
Wendt India Ltd 505412 WENDT

Share Holding

Category No. of shares Percentage
Total Foreign 6064465 5.48
Total Institutions 19091796 17.24
Total Govt Holding 0 0.00
Total Non Promoter Corporate Holding 2340115 2.11
Total Promoters 64301772 58.08
Total Public & others 18921852 17.09
Total 110720000 100
  • Total Foreign
  • Total Institutions
  • Total Govt Holding
  • Total Non Promoter Corporate Holding
  • Total Promoters
  • Total Public & others

About Grindwell Norton Ltd

Grindwell Norton Limited (GNL) is a subsidiary of Compagnie de Saint-Gobain (Saint-Gobain), a transnational group with its headquarters in Paris. Saint-Gobain has reorganized its businesses into two broad areas: Construction or Building related businesses that serve Regional markets and businesses that serve Global markets. The businesses that serve Global markets fall within the High Performance Solutions sector of Saint-Gobain. GNO's businesses are part of the High Performance Solutions sector. Within GNO, the businesses are divided into two major segments: Abrasives and Ceramics & Plastics. The main businesses in GNL segment are Silicon Carbide, High Performance Refractories and Performance Plastics. The Abrasives business has four manufacturing sites: Mora (near Mumbai), Bengaluru, Nagpur and Bated (Himachal Pradesh). All the sites are certified under ISO 9001, ISO 14001 and OHSAS 18001. Saint-Gobain is a major player worldwide in Abrasives. Besides, GNO has a contract manufacturing facility. Silicon Carbide (SiC) is manufactured at GNL's plant located at Tirupati in Andhra Pradesh. SiC is also manufactured by the company's subsidiary, Saint-Gobain Ceramic Materials Bhutan Private Limited, at its plant near Phuentsholing in Bhutan. Both the plants are certified under ISO 9001, ISO 14001 and OHSAS 18001. High Performance Refractories (HPR) has two plants: one is located at Bengaluru and other at Halol, near Vadodara, in Gujarat. Both the plants are certified under ISO 9001, ISO 14001 and OHSAS 18001. The Performance Plastics business produces and markets more than 800 standard and custom-made polymer products through three business segments: Engineered Components (ENC), Fluid Systems (FLS) and Composites (CMP). GNL has a plant for ENC and FLS products situated at Bengaluru. This plant is certified under ISO 9001, ISO 14001, OHSAS 18001 and TS 1694. Originally registered as a private limited company in the early forties, GNL was later converted into a public limited company in 1950. Grindwell Norton is the pioneer in the manufacture of industrial abrasives, by setting up the first grinding-wheel factory. The company has commissioned its first silicon carbide plant in 1972 and the second one in 1979. In the early 1970s, it started manufacturing coated discs (sander discs). The zircona aluminium oxide discs are sold under the Zircon brand. In 1983, a jumbo coated-abrasive plant was commissioned. To indigenise production, a unit for centralised lubricating systems was set up in 1989-90 with technical assistance from Lincoln, Germany. The company commissioned a small super abrasive resin bond wheel plant at Bangalore in Jan.'95. For its forays into industrial and engineered ceramics, it has technical collaborations with the Saint-Gobain group, France and SEPR. The fused cast refractory was set up in Mar.'95. A new plant for manufacturing non-woven abrasives was inaugurated in Mar.'96 at Bangalore. The expansion of the high performance refractories plant was also completed 1998-99. The installed capacity of Abrasive Grains & refractories have been reduced due to the restructuring of Ceramics Business and discontinuation of manufacturing operations of Fused Cast Refractories. The company has sold its Fused Cast Refractories business to M/s SEPR Refractories India Ltd for a consideration of Rs.68.83 Million during the year 2002. The year 2003 was pretty good for the company in respect of refractories business. The volumes and profit were above the projections. This business was certified under ISO 9001:2000, during the year 2003. During the financial year ended 31 March 2014, Grindwell Norton's Abrasives business took the lead in increasing prices, but, in a very competitive market, where suppliers seemed more concerned with maintaining volumes than margins, the improvement in price realization fell significantly short of what was required to offset the cost increases. Under the circumstances, the company's management did well to limit the drop in volumes and margins. During the year, the new Non-woven plant in Bangalore was fully commissioned and the Bonded Abrasives' expansion project at Nagpur, which was slowed down last year, was also completed and commissioned. The company's new High Performance Refractories plant in Halol (Gujarat) stabilized during the year. Production in the grain plant of Grindwell Norton's subsidiary in Bhutan, which was commissioned in 2013, stabilized and the subsidiary started selling Silicon Carbide grains directly to its customers. During the year under review, Grindwell Norton invested Rs.4.31 crore in the equity capital of Saint-Gobain Research India Limited (SGRI). The Scheme of Amalgamation involving the merger of SEPR Refractories India Ltd., Saint-Gobain Crystals & Detectors India Ltd. and Saint-Gobain Sekurit India Ltd. which was approved by the Board of Directors on 19 April 2013, was approved by the shareholders in the Court Convened Meeting held on 27 November 2013, with the requisite majority. However as per SEBI Circular dated 4 February 2013, read with Circular dated 21 May 2013, the requisite majority of public shareholders (other than Promoter and Promoter group) did not approve the Scheme. Consequently, the Scheme of Amalgamation was not acted upon During the financial year ended 31 March 2015, Grindwell Norton's Abrasives business focused on new products and new markets to reverse the drop in volumes in the past two years. The workers' union of Grindwell Norton's Bengaluru plant went on strike for a period of 20 days in November 2015 due to an impasse in the wage negotiations. The management had taken all steps to meet customer requirements during the strike period and there was no major impact on the financial performance of the company due to the strike. Consequent to the approval of the shareholders through postal ballot and e-voting on July 7, 2016, Grindwell Norton issued 5,53,60,000 bonus shares in the ratio of 1:1. The bonus shares were allotted on July 22, 2016. Production of Silicon Carbide at the company's Tirupati plant continued to be affected during the financial year ended 31 March 2017 due to reduced power supply from Andhra Pradesh Gas Power Corporation Limited for much of the year. During the year ended 31 March 2018, the company's Abrasives business unit continued to focus on new products and new markets. The 'Next Level' initiative continued to engage the employees at all levels and there was progress on several dimensions. In Silicon Carbide business, Grindwell Norton's Tirupati plant benefited from improved availability of power in the first half of the year. During the FY2020, the Company signed a Joint Venture Agreement with Shinagawa Refractories Co. Ltd., Japan and incorporated a Private Limited Company, SG Shinagawa Refractories India Private Limited to manufacture tap hole clay for the steel industry. The Company has invested Rs 11.27 crore in SG Shinagawa Refractories India Private Limited and holds 49% of the equity. The project work has started at the Halol (Gujarat) site of the Company. Consequent to the nationwide lockdown announced by the Government of India, the Company's plants and offices were shutdown from March 23, 2020 onwards. This has had a significant adverse impact on the operations of the Company. Since the gradual easing of the lockdown from April 6, 2020, onwards, and in line with the various directives of the Government, the Company's plants have commenced operations in a phased manner. SG Shinagawa Refractories India Private Limited is a Joint Venture between Shinagawa Refractories Co. Ltd., Japan, and Grindwell Norton Limited, set up to manufacture tap hole clay for the steel industry. The project work has concluded at the Halol (Gujarat) site of the Company and commercial production commenced in April 2021.

Grindwell Norton Ltd Chairman Speech

Grindwell Norton Ltd Company History

Grindwell Norton Limited (GNL) is a subsidiary of Compagnie de Saint-Gobain (Saint-Gobain), a transnational group with its headquarters in Paris. Saint-Gobain has reorganized its businesses into two broad areas: Construction or Building related businesses that serve Regional markets and businesses that serve Global markets. The businesses that serve Global markets fall within the High Performance Solutions sector of Saint-Gobain. GNO's businesses are part of the High Performance Solutions sector. Within GNO, the businesses are divided into two major segments: Abrasives and Ceramics & Plastics. The main businesses in GNL segment are Silicon Carbide, High Performance Refractories and Performance Plastics. The Abrasives business has four manufacturing sites: Mora (near Mumbai), Bengaluru, Nagpur and Bated (Himachal Pradesh). All the sites are certified under ISO 9001, ISO 14001 and OHSAS 18001. Saint-Gobain is a major player worldwide in Abrasives. Besides, GNO has a contract manufacturing facility. Silicon Carbide (SiC) is manufactured at GNL's plant located at Tirupati in Andhra Pradesh. SiC is also manufactured by the company's subsidiary, Saint-Gobain Ceramic Materials Bhutan Private Limited, at its plant near Phuentsholing in Bhutan. Both the plants are certified under ISO 9001, ISO 14001 and OHSAS 18001. High Performance Refractories (HPR) has two plants: one is located at Bengaluru and other at Halol, near Vadodara, in Gujarat. Both the plants are certified under ISO 9001, ISO 14001 and OHSAS 18001. The Performance Plastics business produces and markets more than 800 standard and custom-made polymer products through three business segments: Engineered Components (ENC), Fluid Systems (FLS) and Composites (CMP). GNL has a plant for ENC and FLS products situated at Bengaluru. This plant is certified under ISO 9001, ISO 14001, OHSAS 18001 and TS 1694. Originally registered as a private limited company in the early forties, GNL was later converted into a public limited company in 1950. Grindwell Norton is the pioneer in the manufacture of industrial abrasives, by setting up the first grinding-wheel factory. The company has commissioned its first silicon carbide plant in 1972 and the second one in 1979. In the early 1970s, it started manufacturing coated discs (sander discs). The zircona aluminium oxide discs are sold under the Zircon brand. In 1983, a jumbo coated-abrasive plant was commissioned. To indigenise production, a unit for centralised lubricating systems was set up in 1989-90 with technical assistance from Lincoln, Germany. The company commissioned a small super abrasive resin bond wheel plant at Bangalore in Jan.'95. For its forays into industrial and engineered ceramics, it has technical collaborations with the Saint-Gobain group, France and SEPR. The fused cast refractory was set up in Mar.'95. A new plant for manufacturing non-woven abrasives was inaugurated in Mar.'96 at Bangalore. The expansion of the high performance refractories plant was also completed 1998-99. The installed capacity of Abrasive Grains & refractories have been reduced due to the restructuring of Ceramics Business and discontinuation of manufacturing operations of Fused Cast Refractories. The company has sold its Fused Cast Refractories business to M/s SEPR Refractories India Ltd for a consideration of Rs.68.83 Million during the year 2002. The year 2003 was pretty good for the company in respect of refractories business. The volumes and profit were above the projections. This business was certified under ISO 9001:2000, during the year 2003. During the financial year ended 31 March 2014, Grindwell Norton's Abrasives business took the lead in increasing prices, but, in a very competitive market, where suppliers seemed more concerned with maintaining volumes than margins, the improvement in price realization fell significantly short of what was required to offset the cost increases. Under the circumstances, the company's management did well to limit the drop in volumes and margins. During the year, the new Non-woven plant in Bangalore was fully commissioned and the Bonded Abrasives' expansion project at Nagpur, which was slowed down last year, was also completed and commissioned. The company's new High Performance Refractories plant in Halol (Gujarat) stabilized during the year. Production in the grain plant of Grindwell Norton's subsidiary in Bhutan, which was commissioned in 2013, stabilized and the subsidiary started selling Silicon Carbide grains directly to its customers. During the year under review, Grindwell Norton invested Rs.4.31 crore in the equity capital of Saint-Gobain Research India Limited (SGRI). The Scheme of Amalgamation involving the merger of SEPR Refractories India Ltd., Saint-Gobain Crystals & Detectors India Ltd. and Saint-Gobain Sekurit India Ltd. which was approved by the Board of Directors on 19 April 2013, was approved by the shareholders in the Court Convened Meeting held on 27 November 2013, with the requisite majority. However as per SEBI Circular dated 4 February 2013, read with Circular dated 21 May 2013, the requisite majority of public shareholders (other than Promoter and Promoter group) did not approve the Scheme. Consequently, the Scheme of Amalgamation was not acted upon During the financial year ended 31 March 2015, Grindwell Norton's Abrasives business focused on new products and new markets to reverse the drop in volumes in the past two years. The workers' union of Grindwell Norton's Bengaluru plant went on strike for a period of 20 days in November 2015 due to an impasse in the wage negotiations. The management had taken all steps to meet customer requirements during the strike period and there was no major impact on the financial performance of the company due to the strike. Consequent to the approval of the shareholders through postal ballot and e-voting on July 7, 2016, Grindwell Norton issued 5,53,60,000 bonus shares in the ratio of 1:1. The bonus shares were allotted on July 22, 2016. Production of Silicon Carbide at the company's Tirupati plant continued to be affected during the financial year ended 31 March 2017 due to reduced power supply from Andhra Pradesh Gas Power Corporation Limited for much of the year. During the year ended 31 March 2018, the company's Abrasives business unit continued to focus on new products and new markets. The 'Next Level' initiative continued to engage the employees at all levels and there was progress on several dimensions. In Silicon Carbide business, Grindwell Norton's Tirupati plant benefited from improved availability of power in the first half of the year. During the FY2020, the Company signed a Joint Venture Agreement with Shinagawa Refractories Co. Ltd., Japan and incorporated a Private Limited Company, SG Shinagawa Refractories India Private Limited to manufacture tap hole clay for the steel industry. The Company has invested Rs 11.27 crore in SG Shinagawa Refractories India Private Limited and holds 49% of the equity. The project work has started at the Halol (Gujarat) site of the Company. Consequent to the nationwide lockdown announced by the Government of India, the Company's plants and offices were shutdown from March 23, 2020 onwards. This has had a significant adverse impact on the operations of the Company. Since the gradual easing of the lockdown from April 6, 2020, onwards, and in line with the various directives of the Government, the Company's plants have commenced operations in a phased manner. SG Shinagawa Refractories India Private Limited is a Joint Venture between Shinagawa Refractories Co. Ltd., Japan, and Grindwell Norton Limited, set up to manufacture tap hole clay for the steel industry. The project work has concluded at the Halol (Gujarat) site of the Company and commercial production commenced in April 2021.

Grindwell Norton Ltd Directors Reports

Dear Members,

Your Directors are pleased to present the 71st Annual Report of the Company along with the audited financial statements for the year ended March 31, 2021.

FINANCIAL HIGHLIGHTS

Standalone

Consolidated

2020-21 2019-20 2020-21 2019-20
Sale of Products (Gross) 1493.32 1429.16 1498.76 1456.56
Service & Other Operating Income 139.58 123.19 139.15 123.01
Revenue from Operations 1632.90 1552.35 1637.92 1579.57
Operating Profit 322.88 243.65 320.69 247.10
Interest 3.24 4.28 3.42 4.47
Profit before share of profit/(loss) from Join Venture 319.64 239.37 317.27 242.63
Share of profit/(loss) in Joint Venture - - (0.07) 0.01
Provision for Tax 77.56 56.42 79.46 58.74
Profit for the year 242.07 182.95 237.74 183.89
Other Comprehensive Income (Net) 19.59 (14.64) 19.59 (14.64)
Total Comprehensive Income for the year 261.66 168.31 257.33 169.25
Less: Share of Minority Interest - - 1.44 (1.37)
Total Comprehensive Income attributable to owners 261.66 168.31 258.78 167.88

DIVIDEND

Your Directors are pleased to recommend for approval of the Members a dividend of ` 9.50/- per equity share of face value of

` 5/- each for the financial year ended March 31, 2021. The dividend on equity shares, if approved by the Members, would involve a cash outflow of` 105.18 crores, as against the cash outflow of ` 83.04 crores in the previous year.

TRANSFER TO RESERVES

Your Directors do not propose to transfer any amount to the reserves.

OPERATIONS

In the backdrop of once-in-a-century global pandemic crisis, India's GDP for the financial year 2020-21 likely to end with a contraction of between 7.5% to 8% compared to a modest growth rate of 4% in 2019-20. The severe, nation-wide lockdown imposed to control the spread of COVID-19 had a huge and adverse impact on lives and livelihoods, especially during the April-June quarter, which witnessed a 24.4% contraction of GDP. As the economy opened up, growth recovered, moderately at first, but the revival gathered strength in the second half. The Industrial activity followed a similar pattern. After a massive contraction of 35.6% in the April-June quarter, the Index of Industrial Production (IIP), witnessed positive growth in the second half. The industrial recovery was fairly widespread. Despite this, the financial year has seen the IIP contracting by about 8.6%. Against this backdrop, your Company's performance was creditable with consolidated revenue from operations and operating profit increasing by 3.7% and 29.8%, respectively. The significant increase in profits coupled with tight control over working capital resulted in your Company adding significantly to its cash balance.

Abrasives

The year began in the midst of a complete and severe lockdown. Economic activity came to a near-standstill with markets being closed and all movement being stopped. Operations were adversely impacted and the business made a loss in the April-June quarter. From the end of the first quarter, however, the easing of supply side restrictions and pent-up demand spurred a revival in growth. The revival started first with large accounts in Auto and Steel before extending to other sectors and channels like Paint,

Construction and the SMEs. Consumer sentiment continued to improve and domestic demand was robust before and during the festive season and even in the months that followed. Meanwhile, the business gained market share and significantly increased exports. Consequently, overall sales increased by 0.9% over the previous year. With input costs being stable for much of the year, expenses being under control and prices holding firm, the operating margin saw a small improvement and the operating profit increased by 5%. During the year, the business commenced construction of a new Coated Maker.

Ceramics and Plastics

The severe lockdown at the start of the year adversely impacted the operations and results of all the businesses in this segment. The revival commenced in June and was sustained over the subsequent quarters. The Silicon Carbide business witnessed a decline in sales and profits. This was partly due to weak demand (domestic and exports) in the first half and partly due to supply constraints. The operations of your Company's subsidiary in Bhutan were severely impacted by restrictions imposed by the Government to control COVID-19 and, as a result, there was a substantial decline in production. During the year, your Company made a further investment in the equity capital of APGPCL which entitled it to receive additional electricity. This enabled increased production at the Tirupati plant. The Performance Refractory business maintained its sales mainly due to the increased demand from the end user industry. Despite sales being flat, there was a substantial increase in the operating profit on account of lower raw material costs for much of the year and the significant increase in plant efficiencies. The Performance Plastics business had an excellent year with a significant increase in sales (domestic and, in particular, exports) and operating profit. This was mainly due to the outstanding results of the Life Sciences segment. As the year progressed demand from passenger cars and the construction sector also improved resulting in higher sales of bearings and composites. Overall on a consolidated basis, the sales and operating profit of the Ceramics & Plastics segment increased by 5.8% and 63.8% respectively.

IT Services and Others

The captive IT development centre (INDEC) and the Projects business had a good year. The IT services segment witnessed an increase in revenue and profits in 2020-21.

COVID-19

COVID-19 pandemic had a disastrous impact globally and India was no exception to this. During these unprecedented times, your

Company attached the highest priority to ensuring the safety, security and well-being of its employees and took various measures in this regard, including facilitating work-from-home for all its office staff, creating the necessary infrastructure and changes in operations at its plants and supporting employees and their families in dealing with COVID-19. At the same time, your Company also took various steps to support its channel partners, it's base of small vendors and sub-contractors and also vulnerable sections of society.

SUBSIDIARY COMPANY/JOINT VENTURE/ASSOCIATE

The Company has one subsidiary in Bhutan, Saint-Gobain Ceramic Materials Bhutan Private Limited. In terms of sub-regulation (1) (c) of Regulation 16 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("Listing Regulations"), it is not a material subsidiary. The operations of your Company's subsidiary in Bhutan was severely affected due to restrictions imposed for containing the spread of COVID-19.

SG Shinagawa Refractories India Private Limited is a Joint Venture between Shinagawa Refractories Co. Ltd., Japan, and Grindwell Norton Limited, set up to manufacture tap hole clay for the steel industry. The project work has concluded at the Halol (Gujarat) site of your Company and commercial production commenced in April 2021.

In accordance with Section 129 (3) of the Companies Act, 2013 ("Act") and Rule 5 of the Companies (Accounts) Rules, 2014 and relevant Accounting Standards ("AS"), the Company has prepared consolidated financialstatements (incorporating the financial results of the subsidiary company and Joint Venture), which forms part of the Annual Report. A statement in Form AOC-1 containing salient features of the financial statements of the subsidiary company and Joint Venture are also included in the Annual Report. In accordance with the provisions of Section 136(1) of the Act, the Annual Report of the Company, containing therein the standalone and consolidated financial statements and audited financial statements of the subsidiary have been placed on the website of the

Company, www.grindwellnorton.co.in.

FUTURE PROSPECTS

At the time of writing, the second wave of COVID-19 is spreading rapidly throughout India. The severity of the spread may force the government to re-impose stricter virus management controls. Having said this, the ground reality is very differentfrom the previous year and industrial activity is continuing in most parts of the country. Thus, while the second wave will have an adverse impact in the first quarter, demand is expected to revive as and when this wave subsides. As such, while your Company's management will prioritize the safety and well-being of your Company's employees and all its associates, it will also focus on servicing its customers, on growth led by new products and new markets (especially, export markets) and on ensuring the margins are maintained, by increasing prices and improving operating efficiencies to offset the recent escalation in commodity and industrial input prices.

Besides, its large cash balance will enable your Company to progress its capital expenditure programme aimed at building capacities and capabilities. While the outlook for the very short term is uncertain, your Directors and the Company's management have immense confidence in your Company's future.

MATERIAL CHANGES AND COMMITMENTS AFTER THE END OF THE FINANCIAL YEAR

There have been no material changes or commitments, affecting the financialposition of the Company, which have occurred between the end of the financial year and the date of the Report.

PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS

The particulars of loans, guarantees andinvestmentshavebeendisclosedinthefinancial . statements

HUMAN RESOURCES

Confronted with a global pandemic and consequent lockdowns, your Company and its employees had to quickly adapt to a very uncertain and fast-changing environment. The employees went out of their way to support their colleagues as also the Company.

At all times, they showed a high degree of professional commitment and often went beyond the call of duty to keep operations running and to meet the needs of its customers. In this unique year, GNO's employees have been exceptional in every respect. Your Directors place on record their appreciation for the huge contribution made by all its employees in this difficult . More generally, employee relations were cordial and productive at all sites of your Company. At the end of the financial were 2006 employees.

The Company follows the best practices in hiring and on-boarding of employees. The Company adopts a fair and transparent performance evaluation process. In order to improve organizational efficiency and levels, employees participate in various training programmes and complete mandatory e-learning courses.

Your Company is committed to create and sustain a positive workplace environment, free from discrimination and harassment of any nature. The Company believes that all employees have a right to be treated with respect and dignity and has zero tolerance towards violations of its Code of Conduct, in general, and its sexual harassment policy, in particular. The Company has constituted an Internal Complaints Committee ("ICC") under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. During the year, no complaint under the sexual harassment policy has been received by the Company.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO AND

ENVIRONMENT

The information on conservation of energy, technology absorption and foreign exchange earnings and outgo stipulated under

Section 134(3)(m) of the Act and read with Rule 8 of the Companies (Accounts) Rules, 2014, is set out in the Annexure 1 of this Report.

Your Company is committed to ensure a clean and green, pollution-free environment as well as a safe and healthy workplace at all plant locations and work sites. Your Company strictly abides by the Saint-Gobain Group's Environment, Health and Safety Charter and the policies and procedures framed under it. All the plants of your Company are certified under ISO 9001, ISO OHSAS 18001. These certifications and various awards are recognition of the efforts made and results achieved by your Company in improving the Environment, Health and Safety at all its work sites.

PARTICULARS OF EMPLOYEES

Disclosures pertaining to remuneration and other details as required under Section 197 of the Act read with Rule 5 of the Companies

(Appointment and Remuneration of Managerial Personnel) Rules, 2014 is annexed as Annexure 2(A) to this Report.

The Statement containing names of top ten employees in terms of remuneration drawn and the particulars of employees as required under Section 197(12) of the Act read with Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, is provided in Annexure 2(B) forming part of this Report. The Annual Report including the aforementioned information is available on the website of the Company, www.grindwellnorton.co.in.

PUBLIC DEPOSITS

The Company has not accepted any public deposits and, as such, no amount on account of principal or interest on public deposits were outstanding as on the date of the balance sheet.

DIRECTORS AND KEY MANAGERIAL PERSONNEL

In accordance with the Act and the Articles of Association of the Company, Mr. Sreedhar Natarajan (Director Identification No. 08320482), Non-Executive, retires by rotation and, being eligible, has offered himself for re-appointment. The Board of Directors recommends the re-appointment of Mr. Sreedhar Natarajan. A resolution seeking shareholders' approval for his re-appointment along with other required details forms part of the Notice.

Mr. Keki Elavia, Dr. Archana Hingorani and Mr. Subodh Nadkarni have submitted declarations that each of them meets the criteria of independence as provided in Section 149 (6) of the Act and Regulation 16(1) and 25 (8) of the Listing Regulations. There has been no change in circumstances affecting their status as Independent, Non-Executive Directors of the Company during the year. They have also completed the registration with the Independent Directors Databank and requisite disclosures have been received from them in this regard.

The disclosures required pursuant to Regulation 36 of the Listing Regulations, Clause 1.2.5 of the Secretarial Standard on General Meetings are given in the Notice of AGM, forming part of the Annual Report and Schedule V of the Listing Regulations are given in the Corporate Governance Report, forming part of the Annual Report. The attention of the Members is also invited to the relevant items in the Notice of the AGM.

Pursuant to Section 203 of the Act, the Key Managerial Personnel of the Company are: Mr. B. Santhanam, Managing Director, Mr. Krishna Prasad, Executive Alternate Director to Ms. Isabelle Hoepfner, Non-Executive Director with effect from May 20, 2020, Mr. Deepak Chindarkar, Chief Financial Officer and Mr. K. Visweswaran, Company Secretary.

None of the Directors or Key Managerial Personnel has any pecuniary relationships or transactions with the Company, other than salaries, commission, sitting fees and reimbursement of expenses incurred by them for the purpose of attending meetings of the Company.

FAMILIARISATION PROGRAMME FOR INDEPENDENT DIRECTORS

The purpose of the programme is aimed to familiarise the Independent Directors with the Company, the nature of the industry in which the Company operates and the business model of the Company. The details of the familiarisation programme imparted to the Independent Directors are available on the Company's website at www.grindwellnorton.co.in/investor-informaton. The Independent

Directors are regularly briefed with respect to the developments that are taking place in the Company and its operations.

NUMBER OF MEETINGS OF THE BOARD

The Board meets at regular intervals to review the Company's businesses and to discuss strategy and plans. A tentative annual calendar of meetings is circulated to the Directors in advance to enable them to plan their schedule and to ensure effective participation.

During the year, six board meetings were held and one meeting of Independent Directors was also held. The maximum interval between the board meetings did not exceed the period prescribed under the Act and the Listing Regulations.

COMMITTEES OF THE BOARD

During the year, in accordance with the Act and Regulation 18 to 21 of the Listing Regulations, the Board has constituted or reconstituted its Committees. Currently, the Board has the following Committees:

? Audit Committee

? Nomination and Remuneration Committee

? Stakeholders Relationship Committee

? Corporate Social Responsibility Committee

? Risk Management Committee

Details of the Committees, their constitution, meetings and other details are provided in the Corporate Governance Report.

DIRECTORS' RESPONSIBILITY STATEMENT

To the best of their knowledge and belief and according to the information and explanations obtained, your Directors make the following statements in terms of Section 134 of the Act:

i. that in the preparation of the annual financial statements for the financial year ended on March 31, 2021, the applicable accounting standards have been followed along with proper explanations relating to material departures, if any;

ii. that such accounting policies have been selected and applied consistently and judgments and estimates have been made, that are reasonable and prudent, so as to give a true and fair view of the state of affairs of the Company at the end of the financial year on March 31, 2021, and of the profit of the Company for the year ended on that date;

iii. that proper and sufficient care has been taken for the maintenance of provisions of the Companies Act, 2013, for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

iv. that the annual financial statements have been prepared on a ‘going concern' basis;

v. that proper internal financial controlsare financialcontrols are adequateplace and are operating thatsuchinternal

With reference to the point number (v), the Board believes that the Company has sound Internal Financial Controls ("IFC") commensurate with the nature and size of its business. However, business is dynamic and the IFCs are not static, and evolve over time as the business, technology and fraud environment changes in response to competition, industry practices, legislation, regulation and current economic conditions. There will, therefore, be gaps in the IFC as the business evolves. The Company has a process in place to continuously identify such gaps and implement newer and/or improved controls wherever the effect of such gaps would have a material effect on the Company's operations.

DIRECTORS' APPOINTMENT AND REMUNERATION

The Nomination and Remuneration Committee has laid down the criteria for Directors' appointment and remuneration. These are set out in the Nomination and Remuneration Policy which is annexed as Annexure 3 to this Report and is also available on the Company's website at www.grindwellnorton.co.in.

ANNUAL EVALUATION OF PERFORMANCE BY THE BOARD

The Board of Directors, on the recommendation of the Nomination and Remuneration Committee has adopted a framework for performance evaluation of the Board, its committees, individual directors, and the chairperson through a survey questionnaire. The survey questionnaire broadly covers various aspects of Board functioning, the composition of Board and its committees, culture, execution and performance of specific duties, obligations and governance. The evaluation parameters are based on the execution of specificduties, quality, deliberation at the meeting, independence of judgement, decision making, the contribution of Directors at the meetings and functioning of the Committees.

The performance of the Board, its committees, individual directors, and chairperson were reviewed by the Nomination and Remuneration Committee and the Board. The Independent Directors evaluated the performance of Non-Independent Directors, Chairperson, and the Board, as a whole. The Board of Directors evaluated the performance of the Independent Directors, their fulfillment of independence criteria in terms of the Act and Listing Regulations, and independence from the management. The

Director being evaluated did not participate in the evaluation process.

RELATED PARTY TRANSACTIONS

All related party transactions entered during the financial year were in the ordinary course of business and on an arm's length

During the year, no material related party transactions were entered by your Company.

Prior approval of the Audit Committee is obtained for all related party transactions. The Audit Committee monitors, on a quarterly basis, the related party transactions entered vis--vis the related party transactions approved by the Audit Committee.

The policy on related party transactions, as approved by the Board, is available on the website of the Company, www.grindwellnorton.co.in. There are no transactions that are required to be reported in Form AOC-2.

The details of the transactions with related parties pursuant to Ind AS-24 are provided in the accompanying financial statements

CORPORATE SOCIAL RESPONSIBILITY ("CSR")

It is your Company's belief that its primary goal is to serve the needs of its customers and, in the process of doing so, to generate employment, livelihood and income for all its stakeholders (suppliers, vendors, service providers, employees, lenders, shareholders etc.) and, at the same time, to contribute to the revenues of the Government. Further, it is your Company's belief that by pursuing its primary goal and by ensuring that its business practices meet the highest standards of corporate governance and ethics, it best fulfills its obligations and responsibility to society. Against the backdrop of this belief, your Company is committed to implementing the agenda set out in its CSR policy. The CSR policy and initiatives were undertaken during the year, in the format prescribed under the Companies (Corporate Social Responsibility Policy) Rules, 2014, as amended, are set out in Annexure 4 to this Report. In accordance with Section 135 of the Act, a Corporate Social Responsibility Committee of the Board, having an Independent Chair, has been constituted to monitor the CSR policy and programs. The amount spent on eligible CSR activity for the financial 2020-21 was around 2.13% of the average profit of the Company during the immediately preceding three financial years.

RISK MANAGEMENT POLICY AND INTERNAL FINANCIAL CONTROLS

Your Company recognises that managing risk is an integral part of good management practice and an essential element of good corporate governance. It aims to have a common, formalized, and systematic approach for managing risk and implementing a risk management process across the Company. The intent of the policy is to ensure the effective communication and management of risk across all risk categories. The Company has identified elements of risk, which may threaten the existence and financialposition of the Company, which are set out in the Management Discussion and Analysis Report.

The Company's Internal Financial Control systems are commensurate with the nature of its business, financial statements, and the size and complexity of its operations. These are routinely tested and certified by the Statutory as well as Significant audit observations and follow-up actions thereon are reported to theAudit Committee.

WHISTLE BLOWER POLICY AND VIGIL MECHANISM

Your Company has adopted and disseminated its Whistle Blower Policy to provide a secure environment and encourage employees and others to report unethical, unlawful or improper practices, acts or activities including a leak or suspected the leak of Unpublished

Price Sensitive Information and to prohibit any adverse personnel action against those who report such practices, acts or activities, in good faith.

The Whistle Blower Policy is available on the website of the Company, www.grindwellnorton.co.in.

AUDITORS a. Statutory Auditors

M/s. Price Waterhouse Chartered Accountants LLP (Firm Registration No. 012754N/N500016) were appointed as Statutory

Auditors of your Company at the 67th AGM of the Company held on July 26, 2017 till the conclusion of the 72nd AGM of the

Company to be held in the year 2022. The Statutory Auditors have confirmed they are not disqualified from continuing as Auditors of the Company

b. Cost Auditor

In accordance with Section 148 of the Act and Rules framed thereunder, the cost audit records are maintained by the Company in respect of the products which are required to be audited. Your Directors, on the recommendation of the Audit Committee, appointed M/s. Rao, Murthy & Associates, Cost Accountants (Firm Registration No. 000065), to conduct the audit of the cost records maintained by the Company for the financial year ending March 31, 2022. M/s. Rao, Murthy & Associates, Cost Accountants, have under Section 139(1) of the ActandtheRulesframedthereunderfurnished certificateof their eligibility and consent for the appointment.

In accordance with the provisions of Section 148(3) of the Act read with Rule 14 of the Companies (Audit and Auditors) Rules, 2014, the remuneration payable to the Cost Auditor as recommended by the Audit Committee and approved by the

Board of Directors have to be ratified by the Members of the Company. Accordingly, an appropriate resolution forms part of the Notice convening the AGM. The Board of Directors seeks your support in approving the proposed remuneration of ` 2,00,000/- (Rupees two lakhs only) plus taxes and out of pocket expenses at actuals payable to the Cost Auditor for the financialyear ending March 31, 2022. M/s. Rao, Murthy & Associates, Cost Accountants, have vast experience in the field of cost audit and have conducted the audit of the cost records of the Company for the past several years.

c. Secretarial Auditor

In accordance with Section 204 of the Act and Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Company had appointed M/s. Parikh & Associates, Company Secretaries, to undertake the Secretarial

Audit of the Company for the financialyear ended March 31, 2021. The Secretarial Audit Report for the financial year ended March 31, 2021, in Form No. MR-3 is set out in Annexure 6 of this Report.

The Board has also appointed M/s. Parikh & Associates, Company Secretaries as Secretarial Auditor to conduct Secretarial Audit of the Company for the financial year 2021-22.

Comments on Auditors' Report

There are no qualifications, reservations or adverse remarks or disclaimers made by M/s. Price Waterhouse Chartered Accountants LLP, Statutory Auditors, in their Auditors' Report and by M/s. Parikh & Associates, Secretarial Auditor, in their Secretarial Audit Report.

The Auditors have not reported any incident of fraud to the Audit Committee of the Company in the year under review.

ANNUAL RETURN

Pursuant to Section 92(3) read with Section 134(3)(a) of the Act, the Annual Return as on March 31, 2021 is available on the

Company's website, www.grindwellnorton.co.in.

DISCLOSURE REQUIREMENTS

As per Listing Regulations, the Corporate Governance Report with the Auditors' Certificate thereon, and the Management Discussion and Analysis Report are attached, which forms part of this Report.

As per Regulation 34 of the Listing Regulations, a Business Responsibility Report is attached and is a part of this Annual Report. The Dividend Distribution Policy of the Company as required under the Listing Regulations was adopted to set out the parameters and the circumstances that will be taken into account by the Board of Directors in determining the distribution of dividend to its shareholders. The policy is annexed as Annexure 5 of this Report and is also available on the Company's website, www.grindwellnorton.co.in.

Your Company has devised proper systems to ensure compliance with the provisions of all applicable Secretarial Standards issued by The Institute of Company Secretaries of India and that such systems are adequate and operating effectively.

SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNALS orders passed by the regulators or courts or tribunals impacting the going concern Therehavebeennosignificant status of the Company's operations in the future.

ACKNOWLEDGEMENTS

Your Directors take this opportunity to acknowledge, with sincere gratitude, the support of its esteemed customers, the strength it derives from its association with Compagnie de Saint-Gobain and its subsidiaries, the continued support and co-operation from its employees, Bankers and the loyalty of the large family of the Company's Dealers, Suppliers and valued Shareholders.

For and on behalf of the Board of Directors
KEKI ELAVIA B. SANTHANAM
Chairman Managing Director
Mumbai, May 7, 2021

   

Grindwell Norton Ltd Company Background

Keki M ElaviaB Santhanam
Incorporation Year1950
Registered OfficeLeela Business Park 5th level,Andheri-Kurla Rd Andheri(East)
Mumbai,Maharashtra-400059
Telephone91-22-40212121,Managing Director
Fax91-22-40212102
Company SecretaryK Visweswaran
AuditorPrice Waterhouse Chartered Accountants LLP
Face Value5
Market Lot1
ListingBSE,MSEI ,NSE,
RegistrarTSR Darashaw Consultants P Ltd
C-101 1st Floor ,247 Park Vikhroli W ,Lal Bahadur Marg ,Mumbai - 400 083

Grindwell Norton Ltd Company Management

Director NameDirector DesignationYear
K VisweswaranCompany Secretary2021
Keki M ElaviaChairman & Independent Directo2021
Laurent GuillotDirector2021
Sreedhar NatarajanDirector2021
Archana Niranjan HingoraniIndependent Director2021
SUBODH SATCHITANAND NADKARNIIndependent Director2021
Laurent TellierDirector2021
B SanthanamManaging Director2021
Isabelle Delphine HoepfnerDirector2021
Krishna Kumar PrasadAlternate Director2021
A Y MahajanDirector2021

Grindwell Norton Ltd Listing Information

Listing Information
BSE_500
BSE_CG
CNX500
BSESMALLCA
BSEALLCAP
INDUSTRIAL
SML250
MSL400
NFTYMSC400
NFTYSC250
NF500M5025

Grindwell Norton Ltd Finished Product

Product NameUnit Installed
Capacity
Production
Quantity
Sales
Quantity
Sales
Value
Abrasive NA 000910.8703
Ceramics NA 000468.998
Service Income NA 000110.7793
Others NA 00049.2925
Other Operating Revenues NA 00012.4142
Abrasive Grains Ton0000
Other Goods NA 0000
Refractories Ton0000
Bonded Abrasives Ton0000
Coated Abrasive Products SqM0000

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