Saint-Gobain Sekurit India Share price

VI. COMPANY MANAGEMENT AND PROJECTBrief History of the Company and its Business SGSIL was incorporated in1973 as a Private Limited Company under the name Maharashtra SafetyGlass Works Pvt. Ltd. in the Union territory of Delhi. In 1977 theregistered office was shifted to Pune as majority of the automobileunits then were in western India. It was promoted by Mr. A. C. Gulatiand Mr. B. R. Dougall. It was converted into a Public Limited Companyin December 2 1988. Subsequently fresh Certificate of Incorporationwas obtained dated November 12 1992 approving the change of name toMaharashtra Glass and Agro Limited. Subsequently the Company obtained afresh Certificate of Incorporation dated December 29 1998 fromRegistrar of Companies Maharashtra Mumbai approving the change ofname to Sekurit Saint-Gobain India Limited and further obtained a freshCertificate of Incorporation dated November 20 2000 from Registrar ofCompanies Pune approving the change of name to Saint- Gobain SekuritIndia Limited. The objects clause was amended in 1992 to includeobjects of carrying on the activity of solvent extraction. However thesame was deleted in 1999.SGSIL manufactures flat and curved toughened glass and laminated safetyglass which are used in the automobile industry. The toughened safetyglass also finds application in solar equipment manufacturingfurniture industry construction and building industry etc. As a majordiversification SGSIL started its solvent extraction plant (200 TPAcapacity) at Ujhani Uttar Pradesh. This plant was commissioned duringSeptember 1992. In 1995 SGSIL entered into technical and financialcollaboration with SGS which is a leading international manufacturer ofautomotive glass. One of the clauses of the collaboration agreementprovided for concentration on core activity i.e. automotive glass andit was thus decided to hive off the Oil Division. As a result of thisSGSIL hived off its Oil Division during 1995-96.The Central Government amended the Motor Vehicles Act in 1995 such thatw.e.f. April 1 1996 every new vehicle has to have a laminatedwindscreen. Accordingly SGSIL put up a plant to manufacture 400000numbers of laminated safety glass per annum at Chakan in Maharashtra.The plant commenced production on June 1 1996.On December 26 1997 SGS took charge of day to day management of SGSILconsequent to increase in its holding through preferential allotmentfrom 26% to 51%. On March 31 1999 Mr. AtuI Gulati resigned as theManaging Director of the Company. Subsequently Mr. A.C. Gulati Mr.B.R. Dougal and Mr. AtuI Gulati resigned from the directorship of theCompany effective from July 31 1999. Effective April 1 1999. theBoard of Directors appointed Mr. Sanjay Arte as the Managing Directorof the Company. Mr.Sanjay Arte resigned as Managing Director in Sept2000. Mr. Emmanuel Nunes was appointed Managing Director from Sept2000. Mr Nunes relinquished the office of the Managing Director onJanuary 31 2002. Mr Daniel Philibert who was appointed as ManagingDirector from February 27 2002 continues to hold this office as ofdate.After the allotment of shares of Rights Issue which was made on April10 1999 the holding of SGS increased from 51% to 75.11%. On 17thOctober 1999 Grindwell Norton Ltd. has sold its 446300 shares to SGS.Pursuant to the last Rights Issue allotment of 30926661 shares wasmade on 16th August 2000. Thus the shareholding of SGS as on Recorddate is 55813526 shares amounting to 85.77%.On March 31 1999 the accumulated losses of SGSIL exceeded 50% of thepeak net worth of the Company during the immediately preceding fourfinancial years. This made the Company a "Potentially Sick IndustrialCompany" as laid down in Section 23 of the Sick Industrial Companies(Special Provisions) Act 1985 (SICA). Subsequently on October 23 1999SGSIL has filed the requisite Form C with the Board for Industrial andFinancial Reconstruction. As of date the Company continues to be a"Potentially Sick Industrial Company" as laid down in the abovesection.