MIRA
INFORM REPORT
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Report Date : |
05.04.2007 |
IDENTIFICATION
DETAILS
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Name : |
KINETIC ENGINEERING LIMITED |
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Registered Office : |
D-1 Block, Plot No.18/2, MIDC, Chinchwad, Pune – 411 019, Maharastra |
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Country : |
India |
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Financials (as on) : |
30.09.2005 |
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Date of Incorporation : |
08.10.1970 |
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Com. Reg. No.: |
14819 |
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CIN No.: [Company
Identification No.] |
L35912MH1970PLC014819 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
PNEK05173A |
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Legal Form : |
A public limited liability company. The Company’s shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturing and Marketing of Motorised Two Wheelers and Three Wheelers upto 350 cc engine capacity, CTV Sets and Colour Monitors. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 400000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established manufacturers of two-wheelers. Trade
relations are fair. Profit margin is under severe pressure. Payments are
usually correct and as per commitments. Nothing adverse can be considered normal for business dealings at
usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
D-1 Block, Plot No.18/2, MIDC, Chinchwad, Pune – 411 019, Maharastra, India |
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Tel. No.: |
91-20-27474301 - 5 |
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Fax No.: |
91-20-27475 842 - 3 |
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E-Mail : |
kel.mktg@globalnet.ems.vsnl.net.in, bharat@kineticindia.com, jane@kineticindia.com |
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Website : |
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Factory 1 : |
D1 Block, Plot No. 18/2, Chinchwad, Pune – 411 019, Maharashtra, India |
DIRECTORS
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Name : |
Mr. A. H. Firodia |
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Designation : |
Chairman |
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Name : |
Dr. N. A. Kalyani |
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Designation : |
Director |
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Name : |
Mr. S. C. Shah |
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Designation : |
Director |
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Name : |
Dr. K. H. Sancheti |
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Designation : |
Director |
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Name : |
Mr. S. R. Sanghi |
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Designation : |
Director |
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Name : |
Mr. S. R. Kotecha |
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Designation : |
Director |
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Name : |
Mr. M. K. Khera |
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Designation : |
Joint Managing Director |
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Name : |
Mrs. Sulajja Firodia Motwani |
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Designation : |
Joint Managing Director |
KEY EXECUTIVES
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Name : |
Mr. R. Ramkumar |
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Designation : |
Dy. General Manager & Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Promoters |
1293511 |
31.83 |
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Persons who may be acting in concert |
717149 |
17.65 |
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Mutual funds and UTI |
1800 |
0.04 |
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Private Bodies Corporate |
186936 |
4.60 |
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Indian Public |
1680641 |
41.36 |
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NRIs/ocbs |
13748 |
0.34 |
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TOTAL |
40,63,670 |
100 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing and Marketing of Motorised Two Wheelers and Three Wheelers upto 350 cc engine capacity, CTV Sets and Colour Monitors. |
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Products : |
The Generic Names of Principal Products/Services of the company are :
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PRODUCTION STATUS
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Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
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Motorised Two Wheelers and Three Wheelers up to 350 cc Engine Capacity |
Nos. |
400000 |
313000 |
100240 |
GENERAL
INFORMATION
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No. of Employees : |
About 1800 |
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Bankers : |
v State Bank of India v State Bank of Indore v ICICI Bank Limited v Punjab National Bank v Bank of Baroda v IDBI Bank Limited v Canara Bank |
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Facilities : |
Secured Loans
(Rs. In millions) :
Unsecured Loans
:
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
P. G. Bhagwat Chartered Accountants Pune, Maharashtra, India Cost
Auditors
Dhananjay V. Joshi & Company Cost Accountants Pune, Maharashtra, India |
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Associates/Subsidiaries : |
ASSOCIATES v Kinetic Fincap Limited v Kinetic Capital Finance Limited v Kinetic Lease & Finance Limited v Kinetic Transportation Products Limited v Kinetic Communications Limited v Kinetic Infotech Private Limited v Jaya Hind Sciaky Limited Subsidiaries v Kinetic Motor Company Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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14500000 |
Equity Shares |
Rs.10/- each |
Rs.145.000 millions |
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500000 |
Unclassified Shares |
Rs.10/- each |
Rs.5.000 millions |
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Total |
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Rs.150.000
millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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4063670 |
Equity Shares |
Rs.10/- each |
Rs.40.636
millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
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30.09.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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40.636 |
40.636 |
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2] Share Application Money |
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0.000 |
0.000 |
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3] Reserves & Surplus |
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60.866 |
660.886 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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101.502 |
701.522 |
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LOAN FUNDS |
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1] Secured Loans |
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1049.659 |
1176.551 |
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2] Unsecured Loans |
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547.258 |
867.925 |
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TOTAL BORROWING |
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1596.917 |
2044.476 |
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DEFERRED TAX LIABILITIES |
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0.000 |
0.000 |
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TOTAL |
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1698.419 |
2745.998 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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791.727 |
1009.127 |
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Capital work-in-progress |
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1.302 |
61.032 |
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INVESTMENT |
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399.227 |
625.851 |
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DEFERREX TAX ASSETS |
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70.955 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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469.766 |
681.856 |
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Sundry Debtors |
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560.936 |
838.628 |
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Cash & Bank Balances |
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3.646 |
10.481 |
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Other Current Assets |
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0.055 |
0.908 |
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Loans & Advances |
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255.662 |
234.595 |
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Total
Current Assets |
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1290.065 |
1766.468 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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849.519 |
736.168 |
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Provisions |
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5.338 |
4.039 |
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Total
Current Liabilities |
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854.857 |
740.207 |
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Net Current Assets |
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435.208 |
1026.261 |
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MISCELLANEOUS EXPENSES |
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0.000 |
23.727 |
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TOTAL |
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1698.419 |
2745.998 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
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30.09.2005 |
31.03.2004 |
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Sales Turnover |
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1980.913 |
2066.636 |
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Other Income |
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197.959 |
18.575 |
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Total Income |
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2178.872 |
2085.211 |
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Profit/(Loss) Before Tax |
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(618.810) |
(613.434) |
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Provision for Taxation |
|
69.192 |
96.750 |
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Profit/(Loss) After Tax |
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(549.618) |
(516.684) |
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Earnings in Foreign Currency : |
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Export Earnings |
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409.104 |
132.363 |
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Other Earnings |
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23.556 |
5.637 |
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Total Earnings |
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432.660 |
138.000 |
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Imports : |
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Raw Materials |
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-- |
18.068 |
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Stores & Spares |
|
62.906 |
43.326 |
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Capital Goods |
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0.915 |
0.018 |
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Total Imports |
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63.821 |
61.412 |
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Expenditures : |
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Raw Material Consumed |
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1413.043 |
1519.629 |
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Diminution in the value of investment |
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177.379 |
183.188 |
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Interest |
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209.209 |
183.188 |
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Depreciation & Amortization |
|
190.125 |
141.505 |
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Other Expenditure |
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833.729 |
957.226 |
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Total Expenditure |
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2823.485 |
2801.548 |
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QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
30.12.2005 (1st
Qtr.) |
31.03.2006 (2nd
Qtr.) |
30.06.2006 (3rd
Qtr.) |
30.09.2006 (4th
Qtr.) |
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Sales Turnover |
313.600 |
292.400 |
201.900 |
362.400 |
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Other Income |
5.700 |
18.700 |
32.500 |
5.900 |
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Total Income |
319.300 |
311.100 |
234.400 |
368.300 |
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Total Expenditure |
380.400 |
415.100 |
306.100 |
372.900 |
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Operating Profit |
(61.100) |
(104.000) |
(71.700) |
(4.600) |
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Interest |
26.300 |
28.700 |
29.400 |
40.600 |
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Gross Profit |
(87.400) |
(132.700) |
(101.100) |
(45.200) |
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Depreciation |
28.000 |
27.700 |
29.200 |
29.800 |
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Tax |
0.700 |
01.000 |
00.800 |
00.600 |
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Reported PAT |
(116.100) |
(161.400) |
(131.100) |
(75.600) |
200512 Quarter 1
Notes
Other Income Includes Profit on Sale of Assets Rs 1.90
million Other Income Rs 3.80 million Expenditure Includes (Increase) / Decrease
in Stock in Trade Rs (9.80) million Consumption of Raw Materials Rs 259.60 million
Staff Cost Rs 55.00 million Other Expenditure Rs 75.60 million Depreciation
indicates Depreciation & Amortisation Tax indicate Provision for Fringe
Benefit Tax EPS is Basic and Diluted Status of Investor Complaints for the
quarter ended December 31, 2005 Complaints Pending at the beginning of the
quarter Nil Complaints Received during the quarter 01 Complaints disposed off
during the quarter 01 Complaints unresolved at the end of the quarter Nil 1.
The above results have been reviewed by the auditors and taken on record by the
Board of Directors of the Company at their meeting held on January 30, 2006. 2.
The Company has allotted following securities on November 29, 2005: i) To
Reliance Capital Limited: a) 0.715 million equity share of Rs 10 each at a
price of Rs 178 per share amounting to Rs 127.30 million. b) 15 million
redeemable preference share of Rs 10 each amounting to Rs 150.00 million. c) 6
lacs convertible warrants @ Rs 178 with a right to subscribe to one equity
share of Rs 10 each. ii) To Ambit Corporate Finance Private Limited: a) 50,500
equity share of Rs 10 each at a price of Rs 178 per share amounting to Rs 9.00
million. b) 0.1 million convertible warrants @ Rs 178 with a right to subscribe
to one equity share of Rs 10 each. iii) To Micro Age Instruments Private
Limited (MAIPL) 0.9 million convertible warrants @ Rs 178 with a right to
subscribe to one equity share of Rs 10 each. MAIPL has exercised the option in
respect of 0.230 millions equity shares of Rs 10 each at a price of Rs 178 per
share amounting to Rs 40.90 million.
200603 Quarter 2
Notes
Other Income Includes Profit on Sale of Assets Rs 17.50 million Other Income Rs 1.20 million Expenditure Includes (Increase) / Decrease in Stock in Trade Rs 47.400 million Consumption of Raw Materials Rs 199.000 million Staff Cost Rs 72.900 million Other Expenditure Rs 75.800 million Depreciation indicates Depreciation & Amortisation Tax indicate Provision for Fringe Benefit Tax EPS is Basic and Diluted Status of Investor Complaints for the quarter ended March 31, 2006 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 01 Complaints disposed off during the quarter 01 Complaints unresolved at the end of the quarter Nil 1. The above results have been reviewed by the auditors and taken on record by the Board of Directors of the Company at their meeting held on May 6, 2006. 2. During the quarter ended March 31, 2006. Company has announced Voluntary Retirement Scheme for its employees at Ahmednagar plant, 190 employees have opted for the Scheme in the above period, Company has made payments to them as per the scheme and the total liability thereon is written off over a period of 3 years.
200606 Quarter 3
Notes
Depreciation indicates Depreciation & Amortisation Tax
indicate Provision for Fringe Benefit Tax EPS is Basic and Diluted Status of
Investor Complaints for the quarter ended June 30, 2006 Complaints Pending at
the beginning of the quarter Nil Complaints Received during the quarter 01
Complaints disposed off during the quarter 01 Complaints unresolved at the end
of the quarter Nil 1. The above results have been reviewed by the auditors and
taken on record by the Board of Directors of the Company at their meeting held
on July 29, 2006. 2. During the quarter ended June 30, 2006, Company has
extended Voluntary Retirement Scheme Period for its employees at Ahmednagar
plant. Additional 113 employee have opted for the Scheme in the above period.
Company has made payments to them as per the scheme and the total liability
thereon is being written off over a period of 3 years. 3. In view of Revised
As-15Employee Benefits applicable with effect from April 01, 2006, the Company
has charged its accounting policy in respect of Leave Encashment and has
recognised the accrued liability thereon of Rs 6.20 million in the above
period.
200609 Quarter 4
Notes:
1. The above results have been reviewed by the Auditors and taken on record by the Board of Directors of the Company at their meeting held on 30th October, 2006. 2. During the quarter ended 30th September, 2006, the Company has extended Voluntary Retirement Scheme Period for its employees at Ahmednagar plant, Additional 5 employees have opted for the Scheme in the above period. The Company has made payments to them as per the scheme and the total liability thereon is being written off over a period of 3 years. 3. During the quarter ended 30th September, 2006, the Company has allotted 750000 Optionally Convertible Warrants of Rs.156/-each with a right to subscribe to one equity share of Rs.10/-each to Clearwater Capital Partners (Cyprus) Limited 4. During the quarter ended 30th September, 2006 the Company has received 2 investor complaints which have been duly attended to. No investor complaint is lying unresolved as at 30th September, 2006. 5. The Current accounting year has been extended to the 15 months period ending on 31st December, 2006.
KEY RATIOS
|
PARTICULARS |
30.09.2005 |
31.03.2004 |
31.03.2003 |
|
Debt-Equity Ratio |
4.53 |
1.71 |
1.43 |
|
Long Term Debt-Equity Ratio |
2.59 |
0.86 |
0.86 |
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Current Ratio |
0.99 |
1.26 |
1.48 |
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TURNOVER RATIOS |
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Fixed Assets |
0.59 |
1.14 |
1.65 |
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Inventory |
2.58 |
4.38 |
6.92 |
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Debtors |
2.13 |
2.29 |
3.27 |
|
Interest Cover Ratio |
(2.52) |
0.94 |
1.79 |
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Operating Profit Margin(%) |
(15.77) |
11.21 |
10.42 |
|
Profit Before Interest And Tax Margin(%) |
(24.30) |
6.02 |
7.09 |
|
Cash Profit Margin(%) |
(22.32) |
5.04 |
5.34 |
|
Adjusted Net Profit Margin(%) |
(30.84) |
(0.15) |
2.02 |
|
Return On Capital Employed(%) |
(16.35) |
5.14 |
8.63 |
|
Return On Net Worth(%) |
(114.25) |
(0.34) |
5.81 |
STOCK PRICES
|
Face Value |
Rs.10.00/- |
|
High |
Rs.(0.01) |
|
Low |
Rs.(0.01) |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
Subject was incorporated on 8th October, 1970 at Pune in
Maharashtra having Company Registration Number 14819.
Promoted by N K Firodia and H K Firodia, subject was incorporated as a
private limited company in October 1970. It became a public limited company
with effect from 1st October, 1975.
In January 1972, the company started producing the Luna brand of Mopeds
designed and developed indigenously, at its plant at Chinchwad, near Pune. In
1984, along with Honda Motor Company, Japan, the company promoted Kinetic Honda
Motors to manufacture scooters based on the latest technology sourced from
Honda Motor Company. In 1998 it raised its stake in Kinetic Honda Motor Limited
(KHML) to 70 per cent as per the agreement signed with Honda Motor Company,
thereby making it a subsidiary. The company also promoted three joint-venture
finance companies, namely 20th Century Kinetic Finance, Integrated
Kinetic Finance and Kinetic Capital
Finance.
In 1992, the company indigenously developed a unique colour television
set based on digital technology. The company has developed micro-processor
decks which, when interfaced, would enable a TV to function as a home
computer-cum-hi-fi-stereo. In 1995, the company introduced Kinetic Merlin
TV-Komtutor, which has three calculators – simple, scientific and function –
built into it.
It introduced the 73cc Pride in 1994. At present it produces four models
– Luna, Spark, Safari and Pride. It produces auto components commercially. During
1996-97, KEL launched a new version of Pride -- Pride FX, K4-100 – a four
stroke step through motorcycle and a new look Safari which has been renamed as
Safari – V2.
The company has embarked upon a project to manufacture a car (500cc)
priced at Rs. 0.125 million. Production commenced in 1997-98. A separate
company, Kinetic Transportation Products Limited. (KTPL), has been formed to
deal with elevators, escalators and auto parking garage in collaboration with
Hyundai Elevator Co. Limited, South Korea. The business related to electronics
is being spun off in to another separate company, Kinetic Communications
Limited.
During the year 1999-2000, the company has received Export Excellence
Award from Engineering Export Promotion Council consecutively for the third
time. Also the company’s Koregaon Bhima factory has been awarded the “Lowest
Accident Frequency Rate Award” for the year 1998 by the National Safety
Council.
Kinetic Challenger Motorcycle was introduced during the year 2000-2001.
The special features of this Motorcycle lean burn engine technology for fuel
efficiency, resonator induction for excellent pick up and low levels of noise
etc. Two new models Kinetic V2-80 and Luna Super 70 with higher fuel efficiency
were also introduced during the year.
To increase their sales and to improve their profit conditions the
company is planning to introduce new products in the near future.
Industry structure and development, sectoral and product-wise
performance
Two-wheelers
Two-wheelers continue to be popular mode of transport in India due to
affordability, high fuel efficiency and convenience, accounting for 80% of all
vehicle sales in the country, with an estimated market size of 6.6 million two
wheelers annually
The two-wheeler market has grown at a compounded annual rate of 12% for
last five years
Motorcycles account for 80% of the two-wheeler industry off take, with
scooters and mopeds accounting for 15% and 5% market share respectively. In
2004-05, motorcycles, scooters and mopeds recorded growths of 20.2%, 4.7% and
5.5% respectively
The motorcycles market can be further segmented as:
v
Entry level - These are basic, no frills motorcycles (typically with
100cc, 4 stroke engines) at lowest price, accounting for 35% of the motorcycles
segment
v
Deluxe or executive -These are motorcycles with 100-125cc, 4 stroke
engines, good styling and user-friendly features priced a little higher than
entry-level motorcycles, accounting for 54% of the motorcycles market
v
Premium-these are motorcycles with 150cc (or higher) engines for
improved performance, styling and features, priced at a premium to the entry
level or executive motorcycles. They represent 10% of total motorcycles off
take respectively
Company's performance
Two-wheelers
During the 18 months period ended 30th September, 2005 ('period under
review'), the Company produced 60761 nos. two wheelers as against 87060 nos. in
the previous year ended 31st March, 2004 ('previous year'). During the period
under review, Company sold 77509 nos. as against sale of 86788 nos. in the
previous year.
The Company is a new entrant into the highly competitive motorcycle
segment. In face of intense competition from well established players, the
Company has not yet been able to garner large sales volumes of its newly
launched motorcycles.
Lower sales coupled with higher expenses in marketing of new models and
increased cost of inputs such as raw materials have led to continuation of
losses for the Company. In order to maintain competitiveness, the Company had
to absorb increases in cost of inputs. These factors have resulted into net
loss of Rs. 550 millions for the period under review.
The Company has decided to adopt a new strategy for motorcycles which
would focus on lowered advertising spends, increased rural penetration and
newer products. The Company will also continue to grow exports of motorcycles
and mopeds, building on the good response received from overseas markets.
Auto components
Kinetic Engineering already has expertise, skilled manpower and well
equipped facilities for manufacturing of auto components. A new strategic
business unit Kinetic Auto Systems has been created with a view to
leverage in house strengths and capitalize on the good growth opportunities in
this area. During the period under review, the Company sourced and accepted
orders for manufacturing of auto components from domestic companies as well as
from abroad, including well known Fortune 500 companies.
The Company's revenue from auto-component business during the period
under review was Rs. 330 millions. Based on inherent strengths and good
response in this business unit, the Company expects to clock excellent growth
in this business in the coming years.
Opportunities, Threats, Risks and Concerns
Motorcycle industry in India is very competitive and dominated by
well-established players. Increasing market penetration in this segment
requires higher amount of sustainability, financial support and consolidation
of resources. Though the motorcycle market is expected to grow at compounded
annual growth rate of 12% upto 2009, the competition is also intensifying
leading to difficulties for small players to grow. Mopeds segment appears to
have stabilized at current levels and retains a value proposition as a low-cost
basic transport product with load carrying utility; but may not clock high
growth or contribute large volumes.
Auto-component is a promising opportunity for the Company as they can
harness existing infrastructure and resources effectively. India's auto-component
manufacturing industry enjoys significant global labour advantages on account
of availability of a vast pool of skilled labour and qualified engineers with
knowledge of English language at comparatively lower cost. Internationally
renowned consultants such as McKinsey & Company estimate that India's
exports of auto components can grow to $20 billion.
The Company has appointed a firm of international repute to advise on
auto-component business. The Company already has rich experience in
auto-component business from the stage of designing to manufacturing and the
in-house facilities and skilled manpower. In view of these inherent strengths,
auto-component manufacturing business would help the Company to turn around and
become a profitable business.
Business outlook and overview
Two-wheelers
The Company has recently added motorcycles to its business portfolio and
invested substantial resources for establishing manufacturing facilities, developing
and marketing new motorcycles over the last few years. However, it has not been
able to generate significant sales volumes in the highly competitive market and
the Company has reported net loss for last three years. As stated earlier, the
Company has decided to adopt a new strategy for motorcycles which would focus
on lowered advertising spends, increased rural penetration and newer products.
The Company will also continue to grow exports of motorcycles and mopeds,
building on the good response received from overseas markets.
The company is in
trade terms with :
v
B.G. Auto Engineers Private Limited
v
D.J. Engineering
v
Electra
v
Good Good Manufactures
v
Imanes Private Limited
v
Indu Plastics
v
Manak Moti Forgings Private Limited
v
Myco Industries
v
Millenium Tools
v
New Swan Enterprises
v
Premier Seals (India) Private Limited
v
Sai I`nterprises
v
Shape-n-Size Casting Private Limited
v
Aqua Mech Engineers
v
National Indosonic
The company has achieved the distinction of receiving the Export
Excellence Award for the fifth time from Engineering Export Promotion Council.
Subject has exported 7005 vehicles during the year for a turnover of Rs.
129.700 millions against 3916 vehicles for a turnover of Rs. 75.100 millions
during the previous year. Subject opened new markets in Australia, Benin,
Congo, Cyprus, Kenya, Korea, Mauritius, Mozambique, Nigeria, Paraguay and
Yugoslavia. Subject has launched in the export market new vehicles such as
Boss, GF-125, Nova and Zing.
FIXED ASSETS
The company’s fixed assets of important value include Leasehold Land,
Freehold Land, Buildings, Plant & Machinery, Electrical Installation &
Fittings, Dies, Jigs & Fixtures, Furniture, Fixture & Office Equipments
and Vehicles.
Website Details :
Subject has become synonymous with pioneering activities, in the Indian
automobile industry. Subject pioneered the concept of personalized
transportation in India, with the launch of Kinetic Luna, in 1972. Since then,
the brand Kinetic Luna has become generic with mopeds.
Subject also takes the credit of revolutionizing the scooter industry in
India. It was the first to introduce a gearless scooter with advanced features
like TLAD suspension, auto choke, auto fuel cork, etc thus offering convenience
and comfort to the earlier hassled scooter customer.
Subject now has the distinction of being India’s only two-wheeler
company to offer a full range of vehicles which range right from mopeds,
step-thrus, scooterettes, scooters to motorcycles.
Milestones
1964 Foundry and Plant of
Jayhind Industries set up.
1970 Kinetic Engineering
Limited, incorporated for the purpose of manufacturing 2 wheelers.
1974 Jayahind Sciaky, set up in
collaboration with Sciaky Intertechnique S.A. of Switzerland.
1980 Kinetic group
joins hands with Twentieth Century Finance Corp. And Integrated Finance
Limited to float Joint Venture
Finance companies to finance Kinetic 2 wheelers
1981
ZF Steering Gear India Limited Launched. (Subject enters into
collaboration with Zahnradfabrik
Friedchshafen A.G. of West Germany).
1984 Kinetic Group enters into
collaboration with Honda Motor Company of Japan and a new
company Kinetic
Honda Motor Limited is born.
1996
Kinetic group takes over Integrated Kinetic Fincap Finance Limited and
the company is
renamed as
Kinetic Lease and Finance Limited
1996 Subject collaborates with
Hyundai Corporation of South Korea to form a new company –
Kinetic Transportation Products
Limited - to manufacture elevators, escalators and Auto
parking
systems with the latest state of the
art VVVF technology.
1997 Kinetic group take over
Twentieth Century Kinetic Finance and the company is now renamed
as Kinetic
Fincap Limited
1998 History is created as Subject
acquires major stakes in Kinetic Honda Motors Limited
1998 Kinetic Communications
Limited set up in technology & license agreement with Daewoo
Electronics
Limited of South Korea, for manufacturing trading and marketing of Colour
Monitors for
PC's.
1999 Kinetic Motor Company
Limited is formally incorporated.
2000 Subject begins building
product portfolio and over the next few years, makes a strong entry
into every
segment of the motorcycles industry
2001 Subject strikes alliance
with Korean two wheeler maker Hyosung Motors which over the next
few years brings
to India revolutionary motorcycles such as the four valve engined GF, the
super sportsbike
Comet and the cruiser Aquila
2002 Subject launches 4-stroke
scooter Nova which goes on to win scooter of the year awards from
ICICI bank -
Overdrive, from Business Standard Motoring and also the Design excellence
award in
automobile design from National Institute of Design - Businessworld
2004
Subject strikes alliance with Italjet Moto Spa from Italy, acquires
production lines and
complete
distribution rights to seven bestselling scooter designs, chalks out a plan to
revamp
the two wheeler segment in India
2005 Subject enters auto
component industry for manufacture of engineering components and tool
engineering for
domestic as well as international companies
The Subject Group of companies is a leading player in the automotive
industry in India. Kinetic Group, founded in 1974, has sold over 6 million
vehicles in India. It has a history of innovation and pioneering and has
introduced several new concepts that have revolutionized the two wheeler
industry. Subject brought the concept of personalized transport to India with
the launch of the moped Luna in 1974. In 1984, it brought to the Indian
customers the first-ever gearless scooter which has come to symbolize comfort,
convenience and universal appeal. It has also brought to India new technologies
such as four valve engines, electric start on scooters and motorcycles, v- twin
engines, USD forks etc. It is the only company to offer top-end world class
bikes Comet and Aquila to Indian bike enthusiasts.
The group has an international technical collaborations with Hyosung
Motors of Korea It has three state of the art manufacturing facilities at
Koregaon Bhima, Ahmednagar and Pithampur; and a nationwide network of nearly
450 dealers and over 1,000 service centers. The company exports vehicles to
developed countries like USA, Canada, Latin America, Europe, Africa, Middle
East and South Asia and has won several excellence awards for exports on state
and national level.
Current popular brand names include Luna, Nova 135, Zing, Velocity,
Boss, Aquila, Comet. The company is preparing to launch some very exciting
Italian designs over the next two years.
Awards
Subject has won several awards
on many fronts. Some of these are:
v Scooter
of the Year award 2002 for Kinetic Nova from ICICI Bank - Overdrive
v Scooter
of the Year award 2002 for Kinetic Nova from Business Standard Motoring
v Import
bike of the Year award 2005 for Kinetic Comet from Business Standard Motoring
v 14
export excellence awards on state and national level, including the prestigious
national trophy for top export performance
v FICCI
award for empowerment of physically challenged
v The
NCPEDP-Shell Helen Keller Award 2004 under the category of Companies /
organizations / institutions for supporting equal rights and gainful employment
for persons with disabilities’
v “Hall
of Pride” award for their Chairman Mr. Arun Firodia by Overdrive in association
with CII, ACMA and SIAM for lifetime contribution to automotive industry
v Society
Young Achiever’s Award for Business for the year 2002 for Ms. Sulajja Firodia MoTwani,
Kinetic Joint MD
v 2003
award for excellence as a top woman CEO from the Institute of Marketing and
Management for Ms. Sulajja Firodia Motwani, Kinetic Joint MD
v Young
Super Achiever Award by Business Today for year 2003 for Ms. Sulajja Firodia
MoTwani, Kinetic Joint MD
v Ms.
Sulajja Firodia MoTwani, Kinetic Joint MD has been selected by the World
Economic Forum as a “Global Leader of Tomorrow”
v Chairman
Mr. Arun Firodia is recipient of the ‘Pimpri Chinchwad Bhushan” award for 2002
by Annasaheb Maghar Social Service Foundation for his contribution towards
industrial, social, education and labor welfare
v Chairman
Mr. Arun Firodia awarded the ‘Nagar Road Industries Association - Life Time
Achievement Award” for year 2002 - 2003 for his outstanding contributions to
the automobile industry
v Chairman
Mr. Arun Firodia Awarded Lifetime Achievement Award by Indira Group of
Institutes in January 2005
v
Chairman Mr. Arun Firodia has been awarded the Udyog Ratna
Award by Pune Municipal Corporation for their contributions to civic society.
v
v Subject
has achieved what nobody else has before! And that too twice - so when you ride
a kinetic, you ride a Guinness World Record holder
Kardungla Pass - the highest motorable road in the world.
Kinetic scooter has set its mark where no other two wheeler
has done so. It has reached the highest motorable road in the world - the
Kardungla Pass (near Leh).
Longest Running
Kinetic scooter has achieved the feat of 1001 hours of continuous endurance running.
The earlier record was for 500 hours held by a Yamaha motorcycle.
Subject products have also achieved other astonishing feats
To demonstrate the excellent engineering behind their
design, Subject products have twice accomplished the feat of successfully
racing against the popular train “Deccan Queen” on the Pune - Mumbai route.
Flagged off from the Pune Station in the presence of press journalists, the
Police Commissioner and the enthusiastic and supporting public, three Luna
vehicles raced against the Deccan Queen and in a record feat reaching Dadar
station at Mumbai 15 minutes ahead of the train.
Kinetic Scooters cross Sahara Desert
In an effort to prove its engineeering, Kinetic scooters, in 1995, passed the
endurance test by crossing the Sahara Desert. Riden by the eminent auto
journalist and now the editor of the popular auto magazine Overdrive, it
crossed the complete desert area and successfully proved its endurance and
ruggedness under very hostile circumstances.
Kashmir to Kanyakumari endurance cum mileage Rally on
Kinetic Nova
12 STATES. 14 DAYS. 3960 KMS. Zero Breakdowns. Zero
punctures
Yet the most impressive figure in Kinetic Nova Mission K2K was 65.8 KMPL
The Kinetic Nova did a rally from Kashmir to Kanyakumari.
And it did so in style. Come heat, come chill, come mud, come hill.. there was
no stopping the Nova. And at an amazing fuel efficiency of 65.8 kmpl across a
distance of nearly 4,000 kms
Indian rider makes a world-record by traveling the 5 highest
motorable passes in the world in under 20 hours on his Kinetic Laser
Khardungla to Pang on Kinetic Laser
Mr. Ajay Sharma is the world’s first person to traverse all
the 5 passes (Khardungla, Warila, Changla. Marsimikla, Tanglangla) (627 kms) in
just 19 hours and 30 minutes on his Kinetic LASER, thus entering into the Limca
Book of World Record for his exceptional expedition. The details of his
expedition is given below:
Ajay Sharma started his expedition on 27 July 04 at 02.30am
from Leh.
v
First he went to Khardungla pass, which is the world's
second highest pass, and reached there at 03.50 am
v
Next he reached Warila pass at 07.05am then headed towards
Changla pass reaching there at 09.05 am
v
After crossing the highest motorable road in the world, Ajay
reached Marsimikla pass at 13.50pm (due to unavoidable circumstances, Ajay had
to delay his travel). Marsimikla pass was the toughest part of the ride as
there is no road for 40 km, only sand and gravel. This pass is hard to conquer
alone but he achieved it in any case.
After taking some picture of world's highest pass Ajay went to Tanglangla pass
reached there at 20.15pm
Finally, he headed towards his last destination, which is
Pang at 22.00pm
In total, Ajay Sharma covered a total destination of 627km in 19hours and 30
minutes
Ajay Sharma, an engineer has immense passion for motorbike racing. During this
long ride, Ajay never had any breathing problem nor high altitude sickness.
According to Ajay, “My bike, Kinetic Laser, has behaved like a true friend who
helps in need. My friends call me wind talker but I think I am mountain tamer
that is why I am world's first and still the only person who is able to
traverse all 5 passes in one day(19.30hr). Kinetic Laser is wonderful bike to
ride and has a good combination of power handling and style. I can easily ride
90kph and above in mountains with the Laser.”
His next trip was to the office of Limca Books of Record in
Gurgaon. He informed them that he was interested in going on an expedition from
Khardungla to Pang - the world’s highest passes. He also discussed the plan
with them. They provided him with a logbook, in which he was asked to record
each and every detail, by the minute of his expedition.
He set off on his expedition on July 27, 2004. He met either
an army officer or a police personnel at each pass to authenticate and verify
this expedition. When he reached his final destination - the pass called Pang,
he had discovered that he covered a distance of 627 km in a record time of
nineteen and half hours.
On his return, he handed over the Logbook with all the
details to the authorities of the Limca Books of Record. The authorized
personnel from the Limca Books of Record further verified his claim of having
covered this distance in a record time with the army officers and police
personnel who he had met after crossing every pass.
He has sent a mail to The Guinness Books of Record informing
them about this expedition, but they are yet to revert.
Delhi to London on a Kinetic
From battling blizzards to surviving a collision on the
autobahn, an adventurous 59-year old former Major General, actually rides his
steed, a Kinetic Scooter, westwards for an arduous 9000 km journey from Delhi
to London.
“My aim was to inspire senior citizens and convey to them
that age and retirement should not bar the spirit of adventure, and they also
could undertake physically permissible adventures as senior citizens,” says
Retired Major General RK Jain with a glint in his eyes. Jain was 59-years old
then, and had three grandchildren, when he undertook a solo scooter ride across
two continents and ten countries from Delhi to London, a decade ago.
Jain’s remarkable 33-day journey was made on 98 cc Kinetic
with no back up or support team. He has an amusing tale to narrate about his
choice of the scooter. As he was preparing to set off on his adventure, he
approached a number of companies for sponsorship. When the Bajaj Group rejected
his request for sponsorship, a friend’s daughter introduced him to the Firodia
Group, the manufacturers of Kinetic, who agreed to sponsor his trip. However,
in the trial run itself from Delhi to Nepal, Jain met with a terrible accident.
He was riding his Kinetic at night, when the high-beam light of an oncoming
truck blinded him temporarily. He couldn’t see a big stone lying on the road
and collided with it. He was so seriously injured that his knucklebones were
visible long after the treatment, and he couldn’t bend his fingers for quite
some time. “It was fortunate that Bajaj refused to sponsor me,” said Jain while
recounting the accident. “If Bajaj had agreed, I wouldn’t have been able to
operate the clutch. The Kinetic doesn’t have a clutch”.
In spite of terrible accident, the ardent adventurer was raring to go just
three months later, on October 14,1993, filmstar Rajesh Khanna flagged Jain off
from the National Stadium, New Delhi, Jain traveled through India, Pakistan,
Iran, Turkey, Bulgaria, Romania, Hungary, Austria, Germany, France and finally
reached Great Britain. His trusted scooter ditched him only twice. Once, in the
heart of rural Pakistan, when the potholes in the roads which were just too big
for the small wheeled Kinetic, forced him to take his scooter on a train for a
short distance, and once again in Turkey, when he rode into a blizzard and the
heavy snowfall reduced the visibility to zero. He then carried his scooter on a
bus. His adventurous journey came to an end in London on November 16, where his
daughter Arti, who lives in Glebe Avenue, Harrow, received him.
Other Kinetic Group Companies
Kinetic Two Wheelers
The flagship Kinetic company. Experience the
best of two wheelers in India.
Kinetic Auto Components
World class auto components indigenously
researched and produced.
Kinetic Elevators and Escalators
Kinetic are India partners of Hyundai Elevator
Company Limited, Korea's pioneering manufacturers of escalators &
elevators.
Kinetic Communications
Their mission is to offer value added
engineering services combining domain knowledge and technology expertise on
CAD/CAM/CAE platforms.
Jaihind Sciaky
Founded in 1974 in collaboration with
SCIAKY, they are the largest manufacturers of Resistance Welding Machines and
controls in India..
News
Release
Kinetic Engineering receives Business world- FICCI’s Corporate
Citizen II award for corporate social responsibility
New Delhi, 6th March, 2006
Renowned engineering and two-wheeler manufacturing company Kinetic
Engineering received the Businessworld-FICCI Corporate Citizen II award as a
recognition of the company’s corporate social responsibility work. Subject’s
founder and chairman Mr. Arun Firodia received the award at the hands of
Ashwani Kumar, Minister of State for Industry. The award is instituted by
FICCI’s socio-economic development foundation (FICCI-SEDF) in conjunction with
leading business magazine Business world.
Kinetic Engineering runs and supports numerous social responsibility
initiatives, sustained over decades. Most notably, Subject runs a project
called " Dreamland” (Swapnabhoomi) in Parbhani District of Maharashtra
where a cluster of 150 villages have been adopted and are given inputs for
sanitation, literacy, vocational guidance, water conservation, irrigation,
women's upliftment, village industries etc. These villages aspire to be called
' ideal ' villages.
In addition, Subject runs a special program for rehabilitation of
leprosy afflicted persons. by way of curing, caring, training and providing
gainful rehabilitation. The program has been sustained for over 15 years, which
is indicative of the company’s commitment and focused approach to the cause of
empowerment and rehabilitation of leprosy patients.
Kinetic Group Chairman, Mr. Arun Firodia said,” It is indeed an honor to
have their work recognized by way of this very prestigious award. Their welfare
programs were initiated a long time before CSR became a buzzword, and have been
sustained for over 25 years which shows their commitment to being a good
corporate citizen.”
Previously, Subject’s CSR initiatives have been recognized by way of the
“FICCI award for empowerment of physically challenged” at the hands of Hon’ble
President of India, Dr. A. P. J. Abdul Kalam and the NCPEDP-Shell Helen Keller
Award 2004 at the hands of Finance Minister Mr. Chindabaram.
Kinetic Engineering is a pioneering company in two wheelers and other
engineering activities. Today, Kinetic Group manufactures and sells an entire
range of two wheelers from motorcycles, scooters to mopeds via three state of
the art manufacturing plants, a full scale research and design center and a
nationwide distribution network comprising 450 dealers and over 1000 service
centers across India. The group is a leading exporter of vehicles across the
globe including the USA, Europe, Latin America, Asia, Africa and Australia and
has won several exports excellence awards.
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
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.43.15 |
|
UK Pound |
1 |
Rs.85.22 |
|
Euro |
1 |
Rs.57.63 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
-- |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
43 |
|
TOTAL |
|
|
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 |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems comparatively
below average/normal. |
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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|