MIRA
INFORM REPORT
|
Report Date : |
21.05.2012 |
IDENTIFICATION DETAILS
|
Name : |
LLOYD ELECTRIC AND ENGINEERING
LIMITED |
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|
|
Registered
Office : |
A-146, B and C, RIICO Industrial
Area, Bhiwadi, Alwar– 301 019, Rajasthan |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
10.11.1987 |
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Com. Reg. No.: |
17-012841 |
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Capital Investment
/ Paid-up Capital : |
Rs. 310.067 millions |
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CIN No.: [Company Identification
No.] |
L29120RJ1987PLC012841 |
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Legal Form : |
Public limited liability
company. Company’s shares are listed on the Stock Exchanges. |
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Line of Business
: |
Manufacturers of Condenser and
Evaporator Coils. |
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No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
A (58) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 17281892 |
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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 well established reputed company having fine track
records. Financials 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 normal 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 – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered Office/Factory : |
A-146, B and C, RIICO
Industrial Area, Bhiwadi, Alwar– 301 019, |
|
Tel. No.: |
91-1493-220724/222521/ 221348 |
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Fax No.: |
91-1493-220543 |
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E-Mail : |
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Website : |
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Corporate Office : |
159, Okhala Industrial Estate Phase- II, New Delhi-110 020, |
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Tel. No.: |
91-11-40627200/300 |
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Fax No.: |
91-11-41609909 |
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|
JANKA ENGINEERING S.R.O. Vrazska 143, 153 00 Praha 5
Radotin, Czech Republic |
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Czech Office: |
LUVATA CZECH AND S.R.O. Vrazska 143, 15300 Praha 5 - |
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Tel. No.: |
420- 257- 811129 |
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Fax No.: |
420- 257- 811136 |
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Manufacturing Plant: |
DOMESTIC 1.
A-146, (B&C),
RIICO Industrial Area, Bhiwadi Distt. Alwar, Rajasthan- 301 019 2.
Industrial Area,
Kala-Amb, Trilokpur Road, Sirmour, Nahan, Himachal Pradesh 3.
C-1/1, Industrial
Area, Selakui Dehradun Uttaranchal 4.
Plot No. 24, Sector
2, IIE, Sidcul Pantnagar, Uttarakhand 5.
Plot No. S 21 &
S 22, NON SEZ, Phase III, Sipcot Road, Mugundarayapuram, Ranipet, Vellore
District, Tamilnadu 6. Bahadarabad, Mehdood, Industririal Park, 2 Salempur, SIDCUL, Haridwar, Uttrakhand |
DIRECTORS
AS ON 31.03.2011
|
Name : |
Mr. S.K. Sharma |
|
Designation : |
Director |
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Date of Birth/Age : |
01.10.1944 |
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Qualification and Expertise |
Mr. S.K. Sharma
holds a Master degree in Engineering in Electrical Communication from the Indian Institute of
Science, system. He also
posses vast experience in management, human resources and administrative fields. |
|
Date of Appointment : |
31.01.2005 |
|
Other Director Ship: |
Fedders Lloyd Corporation Limited, Non-Executive and Independent Director |
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Name : |
Mr. A.K. Roy |
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Designation : |
Whole Time Director |
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Date of Birth/Age : |
31.05.1950 |
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Qualification and Expertise |
Mr. A.K. Roy is
a graduate in Mechanical Engineering with specialization in areas of
industrial engineering, sales, marketing and management. Prior to his Appointment as Whole Time Director, Mr. A.K. Roy was associated with the
Company in the capacity of Chief Executive Officer. He posses vast experience
of over 37 years in engineering automobile and consumer durable industry. |
|
Date of Appointment : |
28.04.2007 |
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Name : |
Mr. K. Lall |
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Designation : |
Director |
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Name : |
Mr. Brij Raj Punj |
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Designation : |
Chairman and Managing Director |
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Name : |
Mr. Mukat B Sharma |
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Designation : |
Whole Time Director cum Chief Financial Officer |
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Name : |
Ms. Geeta Ajit Tekchand |
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Designation : |
Director |
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Name : |
Mr. Mahesh Sreenivasan |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Ms. Anita K. Sharma |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.03.2012
|
Category of
Shareholder |
Total No. of Shares |
% of total No.
of Shares |
|
(A) Shareholding
of Promoter and Promoter Group |
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|
3278578 |
10.85 |
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|
8613447 |
28.51 |
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(B) Public
Shareholding |
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|
609385 |
2.02 |
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|
3000 |
0.01 |
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|
3897528 |
12.90 |
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|
1225 |
-- |
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|
|
|
|
|
|
|
|
|
5127792 |
16.97 |
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|
|
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|
6589834 |
21.81 |
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|
1604484 |
5.31 |
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|
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|
9732 |
0.03 |
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|
473255 |
1.57 |
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(C) Shares held
by Custodians and against which Depository Receipts have been issued |
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Public |
792000 |
-- |
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|
|
|
|
Total |
31000260 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
TrustsBUSINESS DETAILS
|
Line of Business : |
Manufacturers of Condenser and
Evaporator Coils. |
||||
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||||
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Products : |
· Heat Exchangers ·
Rail Coach Air Conditioning Units ·
Window / Split Air Conditionor window |
PRODUCTION STATUS AS ON 31.03.2011
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
Condensing and Evaporator Coil Set |
Nos. |
1225000 |
1225000 |
-- |
|
Fan coil units /Cooling Unit |
Nos. |
10000 |
10000 |
-- |
|
All types of air conditioners up to 15 ton
capacity |
Nos. |
603000 |
603000 |
-- |
|
Sheet Metal (for mfg. coil) |
Nos. |
300000 |
300000 |
-- |
|
Parts of air conditioner/cooling |
Nos. |
10000 |
10000 |
-- |
|
Condenser Coil |
Nos. |
-- |
-- |
546424 |
|
Evaporator Coil |
Nos. |
-- |
-- |
350435 |
|
Air conditioners (RMPU/WAC/IDU/ODU) |
Nos. |
-- |
-- |
360389 |
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
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Bankers : |
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Facilities : |
Note: 1. Terms Loans secured
by the creation of first mortgage and charge on all the immovable and movable
assets, present and future of the Company. (subject to the
charge on specified movable assets created/to be created in favour of the
Company’s bankers by way of security for working capital requirements.) 2. The working
capital loans, fund based as well as non fund based are secured by way of
first hypothecation charge on the stocks/book debts, both present and future
and second charge on pari-passu basis on the fixed assets of the Company. 3. As per Board Resolution dated 14.03.2011 the Company has
allotted 400 Nos., 11.25% secured redeemable non-Convertible Debentures @ Rs.
1.000 Million on 14.03.2011 and balance 100 Nos., 11.25% Secured Redeemable
Non-Convertible Debentures @ Rs. 1.000 Million each on 29.03.2011 for a
tenure of 5 Years on private placement basis. The Interest on Debentures is
payable quarterly from the date of allotment @ 11.25% P.A. Debentures will be
redeemed at par in Six Equal half Yearly installments at the end of 30th
Month, 36th Month, 42nd month, 48th month,
54th month and 60th month from the date of allotment
and secured by first ranking pari passu charge
on all fixed assets including the immovable properties together with structures
and appurtenances thereon and there under and movable properties, present and
future. |
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Banking
Relations : |
- |
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Auditors : |
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|
Name : |
Suresh C. Mathur and Company Chartered Accountants |
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Address : |
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Foreign Subsidiary Company: |
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Associates/Subsidiaries : |
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CAPITAL STRUCTURE
AS ON 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
50000000 |
Equity Shares |
Rs.10/- Each |
Rs.500.000 Millions |
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|
|
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Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
31013160 |
Equity Shares |
Rs.10/- Each |
Rs.310.132
Millions |
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|
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Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
31000260 |
Equity Shares |
Rs.10/- Each |
Rs.310.003
Millions |
|
|
Add: Equity shares Forfeited |
|
Rs.0.064
Million |
|
|
Total |
|
Rs.310.067 Millions |
Notes:
1. Out of the above equity shares
a) Include
40,00,000 Equity Shares allotted in the year 2006-07 on conversion of warrants
issued on preferential basis during the year 2005-06
b) Includes
92,00,000 underlying Equity Shares representing 46,00,000 Global Depository
Receipts issued during the year 2005-06.
c) In the year
2006-2007 the Company had forfeited 13,300 equity shares due to the non-payment
of allotment money. The Board of Directors had annulled the forfeiture of 400
equity shares on receipt of payment advice by the shareholders and accordingly
400 equity shares had been restored back. Subsequent to the annullification of
forfeiture, the paid-up capital stands increased to Rs.310.003 Millions i.e.
31000260 equity shares of Rs.10/- each fully paid-up.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
310.067 |
310.067 |
310.067 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
4010.406 |
3711.636 |
3404.010 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
4320.473 |
4021.703 |
3714.077 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
3306.470 |
1659.125 |
1536.149 |
|
|
2] Unsecured Loans |
0.000 |
250.000 |
200.000 |
|
|
TOTAL BORROWING |
3306.470 |
1909.125 |
1736.149 |
|
|
DEFERRED TAX LIABILITIES |
105.705 |
77.705 |
45.705 |
|
|
|
|
|
|
|
|
TOTAL |
7732.648 |
6008.533 |
5495.931 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
2178.300 |
1944.662 |
1899.213 |
|
|
Capital work-in-progress |
223.367 |
181.292 |
97.543 |
|
|
|
|
|
|
|
|
INVESTMENT |
838.021 |
766.371 |
197.492 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
2026.820
|
1536.362
|
1275.715
|
|
|
Sundry Debtors |
2185.691
|
1823.585
|
1746.074
|
|
|
Cash & Bank Balances |
603.433
|
173.683
|
324.996
|
|
|
Other Current Assets |
0.000 |
0.000 |
0.000 |
|
|
Loans & Advances |
568.106
|
438.482
|
610.866
|
|
Total
Current Assets |
5384.050
|
3972.112
|
3957.651
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
711.468
|
671.373
|
443.234
|
|
|
Other Current Liabilities |
87.436
|
38.694
|
41.941
|
|
|
Provisions |
168.751
|
219.039
|
218.549
|
|
Total
Current Liabilities |
967.655
|
929.106
|
703.724
|
|
|
Net Current Assets |
4416.395
|
3043.006
|
3253.928
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
76.565 |
73.202 |
47.756 |
|
|
|
|
|
|
|
|
TOTAL |
7732.648 |
6008.533 |
5495.931 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
7822.796 |
6765.163 |
5853.213 |
|
|
|
Other Income |
13.563 |
30.114 |
25.809 |
|
|
|
TOTAL (A) |
7836.359 |
6795.277 |
5879.022 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Materials Cost |
6700.957 |
5873.629 |
5180.191 |
|
|
|
Manufacturing Expenses |
80.763 |
56.500 |
47.986 |
|
|
|
Administrative Expenses |
174.031 |
117.282 |
137.677 |
|
|
|
Selling Expenses |
38.696 |
16.676 |
12.222 |
|
|
|
Misc. Expenditure Written Off |
19.142 |
0.000 |
0.000 |
|
|
|
TOTAL (B) |
7013.589 |
6064.087 |
5378.076 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
822.770 |
731.190 |
500.946 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL EXPENSES (D) |
205.000 |
158.364 |
144.739 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
617.770 |
572.826 |
356.207 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
131.212 |
120.050 |
108.505 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
486.558 |
452.776 |
247.702 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
126.000 |
109.000 |
43.980 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
360.558 |
343.776 |
203.722 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
433.524 |
173.898 |
5.176 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Dividend |
46.500 |
31.000 |
0.000 |
|
|
|
Tax on Proposed Dividend |
7.544 |
5.149 |
0.000 |
|
|
|
Transfer to Debenture Redemption Reserve |
25.000 |
0.000 |
0.000 |
|
|
|
Transfer to General Reserve |
45.000 |
48.000 |
35.000 |
|
|
BALANCE CARRIED
TO THE B/S |
670.390 |
433.525 |
173.898 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
1158.847 |
1013.820 |
44.140 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Condenser Coil |
0.000 |
0.000 |
52122.500 |
|
|
|
Raw Materials |
2137.059 |
1064.093 |
419.975 |
|
|
|
Capital Goods |
92.904 |
1.026 |
10.212 |
|
|
TOTAL IMPORTS |
2229.963 |
1065.119 |
52552.687 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
11.63 |
11.09 |
6.57 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
31.12.2011 |
31.03.2012 |
|
|
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Net Sales |
2524.050 |
1745.280 |
1873.140 |
2888.120 |
|
Total Expenditure |
2273.950 |
1569.540 |
1696.410 |
2572.300 |
|
PBIDT (Excl OI) |
250.100 |
175.740 |
176.730 |
315.820 |
|
Other Income |
0.000 |
0.000 |
0.000 |
0.000 |
|
Operating Profit |
250.100 |
175.740 |
176.730 |
315.820 |
|
Interest |
74.410 |
62.280 |
72.320 |
76.060 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
175.690 |
113.460 |
104.410 |
239.760 |
|
Depreciation |
39.290 |
39.440 |
39.440 |
68.980 |
|
Profit Before Tax |
136.400 |
74.020 |
64.970 |
170.780 |
|
Tax |
27.280 |
14.810 |
12.990 |
34.160 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
109.120 |
59.210 |
51.970 |
136.630 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
109.120 |
59.210 |
51.970 |
136.630 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
4.60
|
5.06
|
3.47
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
6.22
|
6.69
|
4.23
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
6.43
|
7.65
|
4.23
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.11
|
0.11
|
0.07
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.99
|
0.72
|
0.66
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
5.56
|
4.28
|
5.62
|
LOCAL AGENCY FURTHER INFORMATION
|
Check List by
Info Agents |
Available in
Report (Yes / No) |
|
1) Year of Establishment |
Yes |
|
2) Locality of the firm |
Yes |
|
3) Constitutions of the firm |
Yes |
|
4) Premises details |
No |
|
5) Type of Business |
Yes |
|
6) Line of Business |
Yes |
|
7) Promoter's background |
-- |
|
8) No. of employees |
No |
|
9) Name of person contacted |
No |
|
10) Designation of contact person |
No |
|
11) Turnover of firm for last three years |
Yes |
|
12) Profitability for last three years |
Yes |
|
13) Reasons for variation <> 20% |
-- |
|
14) Estimation for coming financial year |
No |
|
15) Capital in the business |
Yes |
|
16) Details of sister concerns |
Yes |
|
17) Major suppliers |
No |
|
18) Major customers |
No |
|
19) Payments terms |
No |
|
20) Export / Import details (if
applicable) |
-- |
|
21) Market information |
-- |
|
22) Litigations that the firm / promoter
involved in |
-- |
|
23) Banking Details |
Yes |
|
24) Banking facility details |
Yes |
|
25) Conduct of the banking account |
-- |
|
26) Buyer visit details |
-- |
|
27) Financials, if provided |
Yes |
|
28) Incorporation details, if applicable |
Yes |
|
29) Last accounts filed at ROC |
Yes |
|
30) Major Shareholders, if available |
No |
COMPANY HISTORY:
Incorporated on 10 Nov.'87, subject became public in 1994. It
was promoted by Ashok Punj and Maya Rani Punj. The company is engaged in the
manufacture of condenser coils and evaporator coils. The products of the
company are used as original equipment in window, package, automotive and split
air conditioners. The company has entered into an agreement with its group
company Fedders Lloyd Corporation for offtake of 40% of its production. It also
supplies to OEMs such as Shriram Industrial Enterprises, Sandaw Vikas, Air
Command and to Indian Railways. The company came out with a public issue in
Oct.'94 at a premium of Rs.20/- to part-finance the expansion and modernisation
projects, increasing the capacity from 25,000 pa to 1,25,000 pa. Company has
received anticipated demand from countries like UAE,
PERFORMANCE
HIGHLIGHTS
On the Standalone basis, during the year, the total income
of the Company stood at Rs. 7836.36 Million as against Rs. 6795.28 Million, up
by 15.32%. The Profit before Interest and Depreciation recorded for the year
was Rs. 822.77 Million as against Rs. 731.19 Million in the preceding year,
recording an increase of 12.52%. The Profit after Tax grew by a modest 4.88% to
Rs. 360.56 Million as against Rs. 343.78 Million in the preceding year.
On Consolidation basis, the Total income of the Group stood
at Rs. 10158.39 Million as against Rs. 8190.56 Million, up by 24%. The Profit
after tax was Rs. 375.70 Million as against Rs. 338.07 Million, recording a
growth of 11.11%.
The Company is the only one among its peer group, to have
multiple geographical diverse manufacturing locations which enables it to
compete successfully on a regional basis.
During the year the Company continued to strengthen its brand
equity through innovation, quality products and appropriate business promotion
steps. During the year under review, the Company has set-up state of art
manufacturing facility at Ranipet, Tamil Nadu and at Haridwar, Uttarakhand.
This is in addition to the facility set-up at Pantnagar, Uttarakhand last year.
The new facility at Ranipet, has been strategically located to cater to the
demand of the Southern India and for export market. The said facility which has
commenced commercial production in February, 2011, is engaged in the
manufacture of room air-conditioners, Window as well as Spilt. The another
plant at Haridwar, Uttarakhand is being set-up for catering to the demand of
the packaged Airconditioning units RMPU for Railway applications, Metro and Commercial
Refrigeration units like Air-chillers , air cooled condenser, cooling tower and
heat exchanger coils. The plant at Haridwar, would commence commercial
production in the current year.
SUBSIDIARY
COMPANIES
Pursuant to Accounting Standard AS-21 issued by ICAI,
Consolidated Financial Statements presented by the Company includes the
financial information of subsidiary companies. The Central Government vide
Notification no. 2/2011 dated 8th February, 2011 granted general exemption to
Companies from dispensing with the requirement of attaching the accounts of the
subsidiary companies, subject to certain conditions. As the Company has
complied with all the conditions, the annual accounts and other documents of
the subsidiary companies are not attached with the Balance Sheet of the
Company. The Annual Accounts of the subsidiary companies are open for
inspection by any member/ investor and also available on the website of the
Company- www.lloydengg.com. The Company will make the documents/ details
available, upon request by any member of the Company or its subsidiaries
interested in obtaining the same.
The performance of the subsidiary companies are given below:
a) Lloyd Coils Europe s.r.o.
(LCE) is engaged in the manufacture of coils and has its manufacturing
facility in Prague, Czech Republic . The Operations of LCE during the last
fiscal year have been strongly influenced by the market turnaround observed in
Europe after years of recession. Total sales for the company increased by 50%
from previous year and reached Euro 27.5 Million. The market demand boosted by
more than 20% in the HVAC and R industry in Europe. Exceptional increase came
from Russia and decent recovery has been experienced in large West-European
countries – Germany, France and U.K. Among the segments, large growth came from
commercial air-conditioning, especially on roof-tops which had become more
popular in Europe.
During the year, the company made an additional investment of Euro 1.2
Million (Rs. 71.65 Million) towards capital contribution of Lloyd Coils Europe
s.r.o. and extended shareholders loan of Euro 1.5 Million (Rs. 94.44 Million).
b) Janka Engineering s.r.o.
(Janka): In 2009, the Company acquired ‘Janka’, a 139 year old brand in
Czech Republic. The year 2010-11 was the first full year for Janka Engineering
s.r.o., a wholly owned subsidiary of the Company under the new ownership. Janka
is engaged in the manufacture of air handling units, industrial fans and is
having state-of-art manufacturing facility in Prague , Czech republic . The
year under review was full of uncertainty as the subsidiary had to face many
challenges due to continuing unfavorable conditions in the Czech and Slovak
construction industry, which effected the performance of Janka, particularly
the intake of new orders. The subsidiary reported sales of Euro 11.2 Million
during the year under review. The profitability of the subsidiary was
negatively impacted by bad debts for one of the largest customers that had to
be written off due to the customers bankruptcy and unhealthy markets
conditions. However, by the end of the fiscal year, the Company developed new
products like Tram Ac units for Prague tramways and is expected to show
improvements.
Shareholders loan of Euro 0.15 Million (Rs. 8.92 Million) was also extended
to its wholly owned subsidiary ,Janka
Engineering s.r.o. during the year.
c) Lloyd Electric FZE, had not commenced operations since the date of
its establishment due to the non-feasibility of the warehouse location, as the target
customer base were centered in and around Dubai. In view there of the Company
during the year applied for voluntary de-registration and cancellation of
license of Lloyd Electric FZE with Ras Al rd Khaimah, Free Trade Zone
Authority. The RAK Authority de-registred Lloyd Electric FZE effective 23 May,
2011, pursuant to which Lloyd Electric FZE ceased to be the subsidiary of the
Company.
MANAGEMENT DISCUSSION
AND ANALYSIS
The world economy is gradually
coming out of the downturn. The robust growth in India and China has provided
an impetus to the ongoing recovery of the world economy. The state of the
economies of many developed countries continue to be a cause of concern with
the Euro zone being the most vulnerable as global rating agencies continue to
downgrade the sovereign debt rating of many countries in this region. As
regards the US economy, though it is showing incipient signs of recovery, the
high unemployment levels continue to defy solution. Thus the developing
economies are now emerging as the major drivers of global economic growth.
During 2011, the Indian economy
saw acceleration in the pace of its growth due to a rebound in rural income
with increase in agricultural production and a good industrial and service
sector growth. With strong demand, robust consumption, savings and investment
rates set to continue in 2012, the GDP growth projection for 2011-2012 is in
excess of 8%. While the growth outlook remains strong, in the near term, there
are a number of challenges facing their economy such as high levels of
inflation particularly in food prices, a widening trade deficit, deceleration
in corporate spending and hardening of global energy prices. Concerted and
coordinated monetary, fiscal and policy measures are required to tackle these
challenges head on. Despite these challenges, in the medium to long term, India
has many positive factors in its favour to strengthen its emergence as a global
economic powerhouse.
INDUSTRY STRUCTURE AND DEVELOPMENTS
The Indian room air conditioning
industry got off to a very promising start in 2010. In 2010-11, the estimated
total market size for air conditioning in India was around Rs. 131 Billion. Out
of this, the market for room air conditioners comprise of Rs. 70 Billion, while
the market for central plants, packaged/ ducted systems was about Rs.
61Billion. Due to the increase in consumer spending, the market for room air
conditioning continues to grow rapidly. The current penetration level of air
conditioners in India is a mere 3% and according to industry estimates, the
penetration is expected to double over the next 5 years. This presents
significant opportunities to the players in the room air conditioning business.
Another significant factor was the
continuing trend towards energy –efficiency with consumers increasingly
upgrading to higher Star-rated products. Consciousness of more energy efficient
products (such as inverter Ac's and Stabilizer Free Ac's) and those that use
environment friendly refrigerants is also gaining ground.
The Green Building concept gained
popularity in many countries. Despite green technology higher cost consumers
are increasingly basing their purchase decision on products which are
environment friendly and their ability to reduce energy cost and carbon foot
prints. This enhanced environmental consciousness among the consumers is
compelling Companies and industries to be more responsible Corporate citizens
and forced to invest in new technologies and Research and Developments.
INTRODUCTION
Lloyd Electric is leading manufacturer
of heat exchanger coils serving the Heating, Ventilation, Air-conditioning and
Refrigeration (HVAC and R) Industry. The Company is an original equipment
manufacturer (OEM) supplier to AC manufacturers in India. The Company also
provides customized AC solutions for institutional clients like railways and
defense. Lloyd has further expanded into the transport segment and has
developed new models for the same.
FINANCIAL HIGHLIGHTS
On Standalone basis, the Total Income of the Company for the year ended March 31, 2011 grew by 15.32% to Rs. 7836.36 Million as against Rs. 6795.28 Million in FY 2009-10 and Profit before tax grew by a modest 4.88% to Rs. 360.56 Million as against Rs. 343.78 Million in the previous year. On the Consolidation basis, the Total income grew by 24% and crossed 10 Billion mark, thereby achieving a milestone in the history of the Company. On the consolidation basis, the Total income stood at Rs. 10148.76 Million as against Rs. 8171.29 Million during the previous year and Profit before tax grew by 11% to Rs. 375.70 Million as a against Rs. 338.07 Million during the previous year.
ECONOMIC SCENARIO AND OUTLOOK
Given today's environmental concerns and the mounting pressure to develop more energy- and resource-efficient products, Micro Channel Heat Exchangers (MCHEs) are steadily gaining ground over traditional fin and tube coils. Being all Aluminium brazed fin construction , they result in the improvement of cost of production by around 10% and require around 30% less refrigerant, paving way for lighter, more compact products. As per the industry estimates, over the next five years, the market share of MCHEs is expected to rise from 3% to 40%. This embarks another step towards growth strategy.
To meet with the growing demand for the energy efficient heat exchangers for HVAC and R industry, the company has expanded its existing Air conditioning manufacturing facility at Pantnagar, Uttarakhand. The expansion represents investment in imported machinery and equipment for the manufacture of Micro Channel Condenser Coils, a latest technology in the field of heat exchangers to meet with the growing demand for energy efficient heat exchangers for room air conditioning which are now being used in Room Air conditioners.
All the Micro Channel Heat Exchangers are passed through rigorous test of Helium Leak detector to detect even the minutest leakages in coils and thus maintain highest level of Quality Standards.
During the year, a Psychometric Test Lab was set-up at Pantnagar plant to test Aicronditioners upto 5 tonne capacity. The test lab is also used to test and balance products with new refrigerant like R-410 and R-290 which are environment friendly. With its inhouse test lab in place, the Company is able to offer immediate solution to potential OEM customers as per their specific technical requirement. This has helped in achieving the performance of the products in a narrow band of tolerance thereby adhering to the Bureau of Energy Efficient (BEE) standards and improving reliability.
The Company, considering the growth in room air conditioning segment has planned its capacity expansion to cater to the increased demand from existing as well as new OEM customers. In view of the same, Company has set-up air conditioning manufacturing facility at at Ranipet, Dist. Vellore, Tamil Nadu. The Ranipet facility has been strategically located to cater to the demand of the Southern part of the country and for the export market. The plant had commenced commercial production in February, 2011.
During the year, there was considerable intake of orders from Railways for the supply of roof mounted packaged
units (RMPU's) for LHB rail coaches. Based on the requirements of Indian Railways, the Company has developed 10 TR. HVAC system to be used in New double decker coaches being built at RCF. This product which meets with the international standards had been cleared by the RDSO. An additional Rail coach Factory at Rae Bareli in UP is being set up as a leading coach manufacturing unit of rated capacity of 1000 coaches per annum. This would increase the demand of the RMPU units for LHB type coaches. In addition, the Company has developed HVAC units for Metro and CLW cab cooling units. Considering the demand from the Transport Air conditioning segment, the Company has set-up a state of art manufacturing facility at Haridwar, Uttarakhand for the manufacture of packaged Air Conditioning units for Railway application; Metro and Defence units; commercial refrigerations units viz. Air Chillers, Air-cooled condenser; and Heat exchangers. The Haridwar plant would commence the commercial production during the current financial year.
During the year under review, on the Coil front, the Company has strengthen its foothold in the transport airconditioning segment. The Company has commenced production of 15.87mm coils specially used in Dry Coolers for process and power industry.
Taking cognizance of customer preferences, the Company had developed energy efficient models of room airconditioners, which meet with BEE norms. The Company has also enhanced its efforts on promoting star-rated products, with majority of variants being in the 3/5 star categories.
EXPORT MARKET
On the product export front, the Company offers products such as coils and room airconditioners. These products which compete with global brands, enjoy a good reputation in the Middle East market and African market. During the year, Company has developed Windows and Splits Ac's ranging from 18000 to 24000 BTU with reciprocating compressor for export market. The Company is also in the phase of development of new products
SUBSIDIARIES:
Operations of the Lloyd Coils Europe s.r.o., the wholly owned subsidiary of the Company during the last fiscal year have been strongly influenced by the market turnaround observed in Europe after the months of recession. Total sales for the subsidiary increased by 50% from previous year and reached Euro 27.5 Million. In July, the company has returned to the four-shift, 24x7 working schedule, which has been exited just a year before due to the recession. Thanks to all the actions taken in operations to grow the production volume, subsidiary has managed the sharp demand increase smoothly with reasonable lead time and on time delivery results. During the last fiscal year subsidiary continued the development of Al-Al coils with objective to start serial deliveries of this product by end of Q1 2012.
After the year of depression the last fiscal year was again a year of growth. Though, not in every European country and not in every industry. Construction industry has not fully recovered yet and especially public investments are still very restricted. However, after the first signs of demand recovery coming from several European countries, many companies finally released their holds on new capital expenditures, which consequently caused sudden sharp increase of orders. Improvement of demand from traditional customers has combined with spot business obtained by many OEMs from more distant markets, making thus the need for immediate capacity increase even more. The market demand boosted by more than 20% in the HVAC and refrigeration industry. Exceptional increase came from Russia, decent recovery has been experienced in large West-European countries – Germany, France and UK. Central Europe followed the trend but the growth rates were rather on the lower side, while Southern Europe and particularly Spain has not shown any improvement. Among the segment, there was a considerable growth in commercial air-conditioning, especially on roof-tops which became more popular in Europe. The growth in refrigeration was not so significant also because the impact of the previous recession had not been so devastating in this segment. Despite the fiscal issues experienced by virtually all european governments, the overall economic situation went through decent recovery during last year, which was far better than predicted. Major driver was apparently Germany where companies effectively utilized the period of recession and came back stronger than ever before. Depressive situation however continues in Spain and Greece where domestic demand dropped down to bottom and unemployment rate reaches monstrous
figures.
For Janka Engineering s.r.o., wholly owned subsidiary of the Company, which was acquired in 2009, the year represented the first full year under the new ownership. Janka had to face many challenges due to continuing unfavourable conditions in the Czech and Slovak construction industry. Sales for the year reached Euro 11.2 Million. Air handling units (AHU) product had suffered the most due to market decline. However, the Company has witnessed growth in the Industrial cooling products (ICL) coming from nuclear power plant in Slovakia. Large project of nuclear power plant renovation has been executed in Slovakia and Janka was the single supplier for the cooling units there. Similar project is being scheduled for nuclear power plant also in Czech Republic.
The subsidiary has also started to develop a new range of Tram AC units designed for the Prague tramways. Internal resources from the Group have been used for this project as well as co-operation with local companies on development of the best AC loop design. Another project which started at the end of the fiscal year was development of underceiling unit for Czech as well as East-European markets. The best of internal Janka knowledge was utilized on this development. New product was introduced to the public in June 2011.
Room Air conditioner penetration in India is approx 3% which is very low compared to other countries like China, Malaysia, Korea, Taiwan etc. It is expected to grow up to 5% by 2015.
The market is evolving at a rapid pace, there are several factors favoring the Indian Air conditioner market growth. Changing lifestyles, rise in disposable incomes and the ease of availability will aid this growth.
Air Conditioners markets are expected to grow though there would be change in the mix of volume and price input cost will continue to remain high, with the added challenges of volatility. The competitive environment is also expected to remain intense. The Company's strategy and focus remains consistent to robustly defend and strengthen leadership positions, and concurrently lead market development of categories and channels of future.
FIXED ASSETS:
·
·
Temporary Construction
·
Buildings
·
Plant and Machinery
·
Office Equipments
·
Vehicles
·
Furniture and Fixture
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.54.87 |
|
|
1 |
Rs.86.46 |
|
Euro |
1 |
Rs.69.48 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
58 |
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 |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.