lloyd rock fibres ltd Management discussions

INDUSTRIAL SCENE

Lloyd Rockfibres Limited is engaged in manufacture and supply of Rockwool Insulation products, which are used for industrial application to reduce heat loss and also used in building and construction industry to reduce energy cost. The growth of the insulation industry is dependent on the development of Infrastructure and Power Sectors. Sectors like Power, Oil & Gas & other infrastructure project have been major thrust focus areas of government; hence, these sectors have shown a continuous growing trend. There is potential source of consumption of rockwool and insulation products in power sectors, thereby, making rockwool and insulation industry a real growth sector. With the growth of Infrastructure Sector, there has also been a growth in its allied sectors e.g. Buildings, PEB, Gensets, Pharma, Food Processing etc. These factors taken together along with increased awareness among users to decrease energy consumption have lead to continuous increase in the demand of insulation and rockwool products. This growth trend in rockwool requirement will continue to show a rising trend for next many years.

STRENGTHS

The rockwool sector has lot of potential in today’s time. Presently, the Company is non-operational due to outdated plant and machinery. The Company has its own goodwill, hence, on the basis of the same, your Board shall make all endeavors to upgrade the existing plant and machinery.

THREATS

With present huge demand in insulation industry in the years to come, Indian Rockwool industry is not able to cope up with the increasing pressure of demand and supply. There is still a gap between demand and supply equation for Rockwool with demand exceeding supply continuously fin past and is expected to remain same in future also. There is a possibility of foreign players coming into the market and increasing competition, thereby reducing margins. Presently, there is no employee in the Company and the Company is non-operational. The management is making all efforts to revive the operations of the Company.

COMPANY’S OUTLOOK

It is the Endeavour of the Company to revive the operations of the Company by adopting latest techniques of production, improve product acceptability and cutting / reducing costs wherever possible.

RISK MANAGEMENT

The Risk Management policies of the Company have been implemented to ensure that all the moveable and immoveable assets of the Company are adequately covered and the same are renewed by the Board from time to time. Government policy towards Rockwool Sector has remained unchanged for many years and we do not foresee any immediate changes adversely affecting our position.

INTERNAL CONTROL SYSTEM

The Company has developed an internal control system and procedures to ensure efficient conduct of busi -ness and security of its assets.

FINANCIAL AND OPERATIONAL PERFORMANCE

The financial statements have been prepared in compliance with the requirements of the Companies Act, 2013 and Generally Accepted Accounting Principles in India. Please refer Board of Directors’ Report in this respect.

The Company is engaged in the manufacture and supply of Rockwool Insulation products, which are used for industrial application to reduce heat loss and also used in building and construction industry to reduce energy cost.Howerever the company has not carrying any manufacturing activity since September 2013. Therefore there is only one reportable segment in accordance with the Accounting standard on Segment Reporting (AS-17).

HUMAN RESOURCES

The Company believes that the workers are the backbone of the Company and aims at providing opportunities to all the employees to utilize their full potential and grow in the organization. There was no strike or labour unrest during the last financial year. As on 31.03.2016, there was no employee in the company..

	For and on behalf of the Board of Directors
	Sd/-	Sd/-
Place: New Delhi	Gaurav Punj	Arun Krishna Srivastava
Date: 23.08.2017	Director	Director
	DIN: 00822420	DIN: 00042784
	Address: 10, Prithvi Raj road,	Address: B-54, Sector 47, Noida, 201301
	New Delhi, 110011