MIRA INFORM REPORT
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Report Date : |
03.05.2007 |
IDENTIFICATION DETAILS
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Name : |
KINETIC
MOTOR COMPANY LIMITED |
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Formerly Known As : |
KINETIC
HONDA MOTOR LIMITED |
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Registered Office : |
Plot No. 2,
Industrial Area No. 1, Pithampur, District. Dhar, Madhya Pradesh- 454 775 |
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Country : |
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Financials (as on) : |
30.09.2005 |
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Date of Incorporation : |
08.02.1984 |
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Com. Reg. No.: |
10-2353 |
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CIN
No.: [Company
Identification No.] |
L35911MP1984PLC002353 |
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TAN No.: [Tax Deduction & Collection Account
No.] |
PNEK00054F/PNEK05172G |
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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 : |
Manufacturer
of Mopeds and Scooters |
RATING
& COMMENTS
|
MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
26-40 |
B |
Unfavourable
& favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average/normal. |
Small |
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Maximum Credit Limit : |
USD
180000 |
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Status : |
Moderate
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Payment Behaviour : |
Slow
and Delayed |
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Litigation : |
Unknown
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Comments : |
Financial
position is moderate. Directors are reported as experienced, respectable and
resourceful industrialists. Their trade relations are fair. Payments are slow
and delayed. The
company can be considered for normal business dealings at usual trade terms
and conditions with slight caution in view of substantial losses. |
LOCATIONS
|
Registered Office : |
Plot No. 2,
Industrial Area No. 1, Pithampur, District. Dhar, Madhya Pradesh- 454 775, |
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E-Mail : |
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Website : |
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Head
Office : |
D 1
Block, Plot No. 18/2 MIDC, Chinchwad, Pune – 411018, |
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Tel.
No.: |
91-20-27476624/27474301-5 |
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Fax
No.: |
91-20-27475842-3 |
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Factory
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Located at Pithampur, District .Dhar (Madhya Pradesh) and at |
DIRECTORS
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Name : |
Mr. A.H. Firodia |
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Designation : |
Chairman |
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Name : |
Air Chief Marshal H. Moolgavkar |
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Designation : |
Director
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Name : |
Mrs. Sulajja Firodia Motwani |
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Designation : |
Director
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Name : |
Mr. S. S. Marathe |
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Designation : |
Director
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Name : |
Mr. Dinesh Munot |
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Designation : |
Director
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Name : |
Mr. M. Venkataiah |
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Designation : |
Director
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Name : |
Mr. R. J. Kabra |
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Designation : |
Director
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Name : |
Mr. A. M. Shirolkar |
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Designation : |
Director (Technical) |
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Name : |
Wu Hsiung Liu |
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Designation : |
Additional Director |
KEY
EXECUTIVES
|
Name
: |
Mr. V. M. Achwal |
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Designation
: |
Company Secretary |
MAJOR
SHAREHOLDERS
|
Names
of Shareholders |
No. of Shares |
Percentage of Holding |
|
Promoters |
9159000 |
60.69 |
|
Persons acting in
Concert |
1383250 |
9.17 |
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Non-Promoters'
Holding |
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Institutional
Investors and Corporate Bodies |
718378 |
4.76 |
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Indian Public |
3531575 |
23.40 |
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Non-Resident
Indians/ Overseas Corporate Bodies |
299097 |
1.98 |
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Total |
15091300 |
100.00 |
BUSINESS
DETAILS
|
Line of Business : |
Manufacturer
of Mopeds and Scooters |
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Products : |
Scooter
- 87112002 |
PRODUCTION
STATUS
|
Particulars |
Unit |
Licensed Capacity |
Installed Capacity |
Actual Production |
|
Motorised two wheelers and three wheelers upto 350 cc engine capacity
and spare parts and accessories upto 20% of value of annual production |
NOS |
600000 |
175000 |
72237 |
GENERAL INFORMATION
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No. of Employees : |
2000 |
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Bankers : |
v
Canara Bank v
State Bank of v
HDFC Bank Limited |
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Facilities : |
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Banking Relations : |
Unknown
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Auditors : |
M/s. A.F. Ferguson & Co. Chartered Accountants Cost Auditors M/s. Dhananjay V. Joshi & Co. Chartered Accountants |
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Associates/Subsidiaries : |
Nil |
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Holding Company |
Kinetic Engineering Limited |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
62000000 |
Equity
Shares |
Rs. 10/- Each |
Rs.620.0000 Millions |
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
48575050 |
Equity
Shares |
Rs. 10/- Each |
Rs. 485.750 Millions |
FINANCIAL
DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
30.09.2005 (18th Month) |
31.03.2004 |
31.03.2003 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
150.913 |
150.913 |
150.900 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
99.569 |
355.926 |
569.300 |
|
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4] (Accumulated Losses) |
(203.709) |
0.000 |
0.000 |
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NETWORTH |
46.773 |
506.839 |
720.200 |
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LOAN FUNDS |
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1] Secured Loans |
383.111 |
551.906 |
565.600 |
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2] Unsecured Loans |
165.272 |
50.000 |
120.000 |
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TOTAL BORROWING |
548.383 |
601.906 |
685.600 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
595.156 |
1108.745 |
1405.800 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
568.450 |
483.015 |
506.900 |
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Capital work-in-progress |
1.971 |
21.781 |
3.800 |
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INVESTMENT |
0.900 |
31.960 |
14.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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|
|
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Inventories |
245.937
|
410.692 |
660.600 |
|
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Sundry Debtors |
355.894
|
329.840 |
392.600 |
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|
Cash & Bank Balances |
2.446
|
2.927 |
12.400 |
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Other Current Assets |
7.863
|
3.137 |
0.000 |
|
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Loans & Advances |
145.937
|
387.917 |
375.600 |
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Total Current Assets |
758.077
|
1134.513 |
1441.200 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
710.104
|
533.426 |
527.700 |
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Provisions |
24.138
|
29.098 |
32.400 |
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Total Current Liabilities |
734.242
|
562.524 |
560.100 |
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Net Current Assets |
23.835
|
571.989 |
881.100 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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|
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TOTAL |
595.156 |
1108.745 |
1405.800 |
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PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
30.09.2005 (18th Month) |
31.03.2004 |
31.03.2003 |
|
Sales Turnover [including other income] |
2167.635 |
2030.381 |
3347.200 |
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Profit/(Loss)
Before Tax |
(461.461) |
(278.776) |
14.900 |
|
Provision
for Taxation |
1.750 |
64.000 |
1.600 |
|
Profit/(Loss)
After Tax |
(463.211) |
(214.776) |
13.300 |
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|
|
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Export
Value |
4.873 |
18.256 |
NA |
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Import
Value |
21.372 |
93.007 |
NA |
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Total
Expenditure |
2153.635 |
2028.351 |
3345.100 |
SUMMARISED
RESULTS
|
PARTICULARS |
|
|
30.09.2006 (Full year) |
|
Sales Turnover |
|
|
1317.100 |
|
Other Income |
|
|
32.400 |
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Total Income |
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|
1349.500 |
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Total Expenditure |
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|
1724.600 |
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Operating Profit |
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|
(375.100) |
|
Interest |
|
|
57.200 |
|
Gross Profit |
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|
(432.300) |
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Depreciation |
|
|
63.300 |
|
Tax |
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|
(4.200) |
|
Reported PAT |
|
|
(491.400) |
|
Dividend (%) |
|
|
0.000 |
KEY
RATIOS
|
PARTICULARS |
30.09.2005 (18th Month) |
31.03.2004 |
31.03.2003 |
|
Debt
Equity Ratio |
2.08 |
1.05 |
0.85 |
|
Long
Term Debt Equity Ratio |
0.59 |
0.57 |
0.46 |
|
Current
Ratio |
0.90 |
1.48 |
1.56 |
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TURNOVER
RATIOS |
|
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Fixed
Assets |
1.35 |
2.14 |
3.08 |
|
Inventory
|
4.78 |
4.24 |
5.11 |
|
Debtors |
4.58 |
6.29 |
7.19 |
|
Interest
Cover Ratio |
(5.35) |
(3.27) |
1.26 |
|
Operating
Profit Margin (%) |
(12.26) |
(6.79) |
4.23 |
|
Profit
Before Interest and Tax Margin (%) |
(16.51) |
(9.39) |
2.24 |
|
Cash
Profit Margin (%) |
(15.29) |
(6.79) |
2.41 |
|
Adjusted
Net Profit Margin (%) |
(19.54) |
(9.39) |
0.42 |
|
Return
on Capital Employed (%) |
0.00 |
(16.97) |
5.42 |
|
Return on Net Worth (%) |
0.00 |
(34.77) |
1.86 |
STOCK PRICES
|
Face
Value |
Rs.10/- |
|
High |
Rs.32.00 |
|
Low |
Rs.31.25 |
LOCAL AGENCY FURTHER INFORMATION
History
Established in 1984 by the Firodias of
Kinetic Engineering -- the leading manufacturers of mopeds -- Kinetic Motor
Company Ltd, formerly known as Kinetic Honda Motor has a technical and
financial collaboration with the world leaders in automobiles, Honda Motor
Company,
Sales of its sleek 100-cc version of the Honda 90-cc scooter, an
international best-seller, was restricted by its high price. The company
entered into an agreement with The Indian Oil Corporation (IOC), whereby, IOC
is to manufacture Kinetic Honda Genuine 2T oil and market it through its
outlets all over
The company got the status of a government-recognised Export House, in
1995-96.
Kinetic Motor exports to countries like
The company has received All India Award for the year 1998-99 in the category
of "Highest Exporter, Exporter for Export with continuous Excellence - Non
SSI". This is the eight time the company has received such recognition at
Regional/National level.
The company is planning to upgrade its present product range,develop new
vehicle models using latest technology etc. During the year 2000-2001 the
company has introduced an economy scooter Model 'Kinetic Ax' and 'Marvel
Cx'.The 'Marvel Cx' has an imported technology from Honda Motor Company
MANAGEMENT DISCUSSION & ANALYSIS REPORT
Indian Two-Wheeler Industry
During the year 2004-05, 6.6 million Two-wheelers were sold in
Company's Performance
Last year, the Company decided to take a long-term view and undertake numerous
initiatives which would strengthen the company's offerings and position for the
next several years, rather than focusing on short-term objectives which would
distract resources. These initiatives include
carrying out key technological and cosmetic upgrades to several important
current brands - launch of Kinetic 4S (i.e. upgradation of company's popular
scooter Zoom with a new 4 stroke technology which would offer very high
mileage), introduction of Kine' (an important upgrade to the Scooterette Zing80
that would strengthen their presence in the growing small capacity scooters
segment) and launch of Nova 135.
Important revamp of the company's distribution network which has
involved setting up over 40 new dealerships in every important market across
the country at attractive locations with beautiful interiors, sound management
and state of the art workshop facilities. This is critical with a view to
improve overall customer experience at Kinetic dealerships.
Significant re-branding exercise involving creation of a new brand identity
comprising a new logo that appears on all products, dealerships and other
insignia and the launch of an exciting new corporate website to signal a new
Kinetic to the market.
Expansion of international network with new distributors appointed in several
emerging markets, with a view to increase global presence in view of higher
global acceptance of Indian two wheelers.
Preparation for launch of the Italiano series of scooters in terms of design
and productionizing.
Reduction of excess inventory.
While these initiatives were being carried out, it was considered prudent to
defer huge investments in marketing and promotional expenses. Absence from
mainstream advertising, combined with two months of reduced sale due to
activity of phasing out of previous models and replacing them with new upgrades
while ensuring that excess inventory did not accumulate has led to a drop in
sales and correspondingly, in income. During the 18 month period ended 30th
September, 2005 (`period under review'), the Company produced 72.237 nos.
Two-wheelers as against 75.726 nos. in the previous year ending 31st March,
2004 ('previous year'). During the period under review, Company sold 79.972
nos. as against sale of 81.189 nos. in the previous year. In order to maintain
brand presence, the Company has absorbed the increase in cost of inputs and
applied aggressive pricing strategies. Such short term factors have resulted in
loss for the year under review. However, the new products, new branding and
revamped distribution network are expected to be valuable to the Company in the
coming years.
Restructuring
The Company had accumulated losses of Rs. 203.7 Millions at the end of the
financial year ended 30th September, 2005. The Company has already initiated
steps for restructuring including entering into negotiations with financial
investors for infusion of fresh funds for improving net worth, dialogues for
debt restructuring and increased moratorium etc. Subsequent to the Balance
Sheet date, the Company issued on 21st November, 2005 on Preferential basis
14,18,000 Equity shares of Rs.10/- each at price of Rs. 705.200 per share to
Bennett Coleman and Company Limited.
Opportunities, threats, risks and concerns
The
market for automatic scooters has been showing continued growth and they
believe that currently, good opportunity exists for creating new segments
within the automatic scooters market by introducing differentiated products.
Along with growth in segment size, competition is also increasing. Kinetic's
long presence in modern scooter market, expertise in designing and production
and strong brand equity would help in quicker acceptance of their new launches.
Kinetic would also be aiming to play a stronger role in global markets,
especially with the new Italiano series scooters in their fold.
Outlook
They have received encouraging market feedback for their new four stroke
scooter Kinetic 4S and Scooterett Kine'. Both have been well received in the
market. The Company is preparing to begin launch of the Italiano series of
scooters during the current year and these scooters have the potential to
completely change the gearless scooters segment. As explained earlier, several
new world-class dealerships were opened in important cities such as Pune,
Fixed
assets
v
Land (freehold and leasehold)
v
Buildings
v
Plant, machinery
v
Equipment
v
Furniture, fixtures
v
Office equipments
v
Vehicles
As
per website Details:
Kinetic Motor Company Limited is part of
the Kinetic group of companies, a leading manufacturer of two wheelers in
Kinetic Motor began in 1984 as a Joint
Venture with Honda Motor of
Kinetic Motor manufactures a wide range of
scooters at different price and power points. All scooters come with modern
styling, and comfort, convenience features like self start, variomatic
transmission, high mileage, auto choke, auto fuel cock.
Kinetic Zx Zoom:
Zx Zoom is a modern scooter with a 110 cc
engine and a mileage of 50+ on the road. It has a centrally mounted engine for
improved stability, wide and soft seats and an impressive pick up of 0 - 50 km
in just 8 seconds. The scooter is available in two variants, Kinetic AX and
Kinetic DX with 100 cc engines, and prices starting at Rs. 32,000. This model
is exported worldwide under "Honda" brand name.
Kinetic Style:
Kinetic Style is a powerful scooterette
with a 4 bhp, 75 cc engine. It features stylish millennium design, wide seats
and zippy engine.
Kinetic Marvel:
Marvel is a 110 cc full size family
scooter, ideal for urban commuting. It features large comfortable seats,
outstanding mileage, international styling. It is the most luxurious scooter in
Kinetic Motor is nearing completion on two
new important models - a four stroke scooter titled Nova with breakthrough
design and best in class performance; and a 65 cc scooterette titled Zing,
custom designed and priced affordably for college going students.
The company, incorporated in 1970, has a
state of the art manufacturing facility - at Pithampur, near
Kinetic Motor has a technical collaboration
with Honda Motors of
Kinetic Motor Company launches cool
new scooterette Kine in Ahmedabad. Attractive exchange schemes on offer
Ahmedabad, August
12th, 2005
Leading scooter manufacturer Kinetic Motor Company today launched an exciting gearless scooterette in Ahmedabad - Kine. Conceptualized as "the small Kinetic", Kine brings together cool looks, high comfort & convenience and power packed performance in a lightweight and easy to handle package, along with a reduced price tag of Rs. 26,650* It is the ideal two wheeler for students, executives and others looking for a value-for-money two wheeler that does not compromise on any aspect. The Kine was launched at hands of Ms. Sulajja Firodia Motwani, Jt. Managing Director of Kinetic at 'Spice Auto', the companys swanky new dealership on satellite road". Ms. Motwani also announced exciting special exchange schemes exclusively for Ahmedabad.
The cute Kine offers a host of customer benefits:
- Style: The essential
intelligent Kine design is further enhanced by
- Performance: Kines 72cc, 4.2
bhp engine provides quick acceleration as well as easy double seat riding
and load carrying
- Easy riding: Kine scores
high on convenience by way of electric start and gearless transmission and
being lightweight, it is easy to ride and handle
- Utility: special features
like mobile chargepoint, puncture resistant tyres, cola can holder, large
underseat storage area and spacious footboard enhance the Kines utility
- Affordability The Kine is
well-priced compared to other gearless scooters and gives high mileage of
55-60 kmpl
Launching the new
exciting scooter, Ms. Sulajja Firodia Motwani, Jt. Managing Director of Kinetic
said," Its a matter of pride and joy for us to offer the Kine to the
intelligent Ahmedabad consumer. With my new dealership and new Scooterette, I
hope to charm the residents here! Gujarath is the most important market in the
country for this segment, and they have worked hard to tailor-make the Kine to
ensure a perfect fit. I hope the small Kinetic will be appreciated here.
The Kine is priced very attractively at Rs. 26.650. It was launched at
the companys new world class dealership Spice Auto on
To make the purchase even sweeter, Kinetic Motor Company is offering a very
special "exchange offer" for all new buyers of Ahmedabad a whopping
3000 Rs. extra in exchange value for all those exchanging their old vehicles
for brand new Kinetic machines such as Nova 135, Kine and Zoom. The Nova 135 is
a great mix of comfort, convenience, performance, utility and economy with
Since 1974, Kinetic group is a leading manufacturer of two wheelers in
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 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.41.18 |
|
|
1 |
Rs.82.02 |
|
Euro |
1 |
Rs.56.07 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
4 |
|
--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 |
YES |
|
TOTAL |
|
40 |
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 |