MIRA INFORM REPORT

 

Report Date :

29.06.2012

 

IDENTIFICATION DETAILS

 

Name :

KINETIC ENGINEERING LIMITED

 

 

Registered Office :

D-1 Block, Plot No.18/2, MIDC, Chinchwad, Pune-411019, Maharashtra

 

 

Country :

India 

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

08.10.1970

 

 

Com. Reg. No.:

11-14819

 

 

Capital Investment / Paid-up Capital :

Rs.319.630 Millions

 

 

CIN No.:

[Company Identification No.]

L35912MH1970PLC014819

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

PNEK05173A

 

 

Legal Form :

A Public Limited Liability Company. The Company’s Shares are Listed on The Stock Exchanges.

 

 

Line of Business :

Manufacturer of Scooter, Motor Cycles and Mopeds.

 

 

No. of Employees :

Information denied by the management.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (31)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 2300000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is associated with the Firodia Group of Industries. It is a well established company having moderate track records. There appears some accumulated losses in the records of the company during the year 2011. The company has incurred loss during this year.

 

However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct.

 

The company can be considered normal for business dealings with some cautions.

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

INFORMATION DECLINED BY

 

Name :

Mr. Shripad Desai

Designation :

Manager

Contact No.:

91-9860248007

Date :

28.06.2012

 

 

LOCATIONS

 

Registered Office/ Factory :

Kinetic Innovation Park, D-1 Block, Plot No.18/2, MIDC, Chinchwad, Pune-411019, Maharashtra, India 

Tel. No.:

91-20-66142049 / 27474301 - 5

Fax No.:

91-20-66142088 / 89 / 27475 842 - 3

E-Mail :

kel.mktg@globalnet.ems.vsnl.net.in,

bharat@kineticindia.com,

jane@kineticindia.com

vinay.shirode@kineticindia.com

Website :

http://www.kineticindia.com

Area :

10000 Sq. ft.

Location :

Owned

 

 

Factory :

Daund Road, Ahmednagar-414001, Maharashtra, India

 

 

DIRECTORS

 

As on 31.03.2011

 

Name :

Mr. Arun H. Firodia

Designation :

Chairman

 

 

Name :

Mr. Ajinkya A. Firodia

Designation :

Managing director

 

 

Name :

Dr. N. A. Kalyani

Designation :

Director

 

 

Name :

Mr. S. C. Shah

Designation :

Director

 

 

Name :

Dr. K. H. Sancheti

Designation :

Director

 

 

Name :

Mr. S. R. Sanghi

Designation :

Director

 

 

Name :

Mr. S. R. Kotecha

Designation :

Director

 

 

Name :

Mrs. Sulajja Firodia Motwani

Designation :

Director

 

 

Name :

Mr. Ashish Kumar

Designation :

Director

 

 

Name :

Mr. Santosh Senapati

Designation :

Director

 

 

KEY EXECUTIVES

 

Name :

Mr. Anil Kale

Designation :

Company Secretary

 

 

Name :

Mr. Shripad Desai

Designation :

Manager

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 31.03.2012

 

Category of Shareholder

Total No. of Shares

Total Shareholding as a % of total No. of Shares

(A) Shareholding of Promoter and Promoter Group

 

 

http://www.bseindia.com/images/clear.gif(1) Indian

 

 

http://www.bseindia.com/images/clear.gifBodies Corporate

1,631,651

15.73

http://www.bseindia.com/images/clear.gifAny Others (Specify)

4,242,025

40.90

http://www.bseindia.com/images/clear.gifDirectors/Promoters & their Relatives & Friends

4,242,025

40.90

http://www.bseindia.com/images/clear.gifSub Total

5,873,676

56.63

http://www.bseindia.com/images/clear.gif(2) Foreign

 

 

http://www.bseindia.com/images/clear.gifIndividuals (Non-Residents Individuals / Foreign Individuals)

90,000

0.87

http://www.bseindia.com/images/clear.gifSub Total

90,000

0.87

Total shareholding of Promoter and Promoter Group (A)

5,963,676

57.50

(B) Public Shareholding

 

 

http://www.bseindia.com/images/clear.gif(1) Institutions

 

 

http://www.bseindia.com/images/clear.gifMutual Funds / UTI

700

0.01

http://www.bseindia.com/images/clear.gifFinancial Institutions / Banks

1,585

0.02

http://www.bseindia.com/images/clear.gifInsurance Companies

140,454

1.35

http://www.bseindia.com/images/clear.gifSub Total

142,739

1.38

http://www.bseindia.com/images/clear.gif(2) Non-Institutions

 

 

http://www.bseindia.com/images/clear.gifBodies Corporate

880,892

8.49

http://www.bseindia.com/images/clear.gifIndividuals

 

 

http://www.bseindia.com/images/clear.gifIndividual shareholders holding nominal share capital up to Rs.0.100 Million

1,121,261

10.81

http://www.bseindia.com/images/clear.gifIndividual shareholders holding nominal share capital in excess of Rs.0.100 Million

670,482

6.46

http://www.bseindia.com/images/clear.gifAny Others (Specify)

1,592,918

15.36

http://www.bseindia.com/images/clear.gifClearing Members

1,304

0.01

http://www.bseindia.com/images/clear.gifOverseas Corporate Bodies

1,554,381

14.99

http://www.bseindia.com/images/clear.gifNon Resident Indians

36,965

0.36

http://www.bseindia.com/images/clear.gifTrusts

268

-

http://www.bseindia.com/images/clear.gifSub Total

4,265,553

41.13

Total Public shareholding (B)

4,408,292

42.50

Total (A)+(B)

10,371,968

100.00

(C) Shares held by Custodians and against which Depository Receipts have been issued

-

-

http://www.bseindia.com/images/clear.gif(1) Promoter and Promoter Group

-

-

http://www.bseindia.com/images/clear.gif(2) Public

-

-

http://www.bseindia.com/images/clear.gifSub Total

-

-

Total (A)+(B)+(C)

10,371,968

-

 

 

SHAREHOLDING OF SECURITIES (INCLUDING SHARES, WARRANTS, CONVERTIBLE SECURITIES) OF PERSONS BELONGING TO THE CATEGORY “PROMOTER AND PROMOTER GROUP”

 

Sl.
No.

Name of the Shareholder

Details of Shares held

 

 

No. of Shares held

As a % of
grand total
(A)+(B)+(C)

 

 

 

 

1

 Ajinkya Holdings Private Limited

49,018

0.47

2

 Microage Instruments Private Limited

1,582,633

15.26

3

 Arun Hastimal Firodia

764,351

7.37

4

 Arun Hastimal Firodia

176,472

1.70

5

 Arun Hastimal Firodia

107,549

1.04

6

 Jayashree Arun Firodia

2,820,982

27.20

7

 Jayashree Arun Firodia

344,006

3.32

8

 Ajinkya Arun Firodia

28,049

0.27

9

 Sulajja Manish Firodia Motwani

616

0.01

10

 Kimaya Ravindra Kelkar

90,000

0.87

 

 Total

5,963,676

57.50

 

 

SHAREHOLDING OF SECURITIES (INCLUDING SHARES, WARRANTS, CONVERTIBLE SECURITIES) OF PERSONS BELONGING TO THE CATEGORY “PUBLIC” AND HOLDING MORE THAN 1% OF THE TOTAL NUMBER OF SHARES

 

Sl.
No.

Name of the Shareholder

Details of Shares held

 

 

No. of Shares held

As a % of
grand total
(A)+(B)+(C)

 

 

 

 

1

 Pinebridge Asia Partners II L.P.

1,195,562

11.53

2

 Reliance Capital Limited

715,000

6.89

3

 Harsha Hitesh Jhaveri

270,000

2.60

4

 American International Assurance Co Bermuda

0

0.00

5

 American International Assurance Co Bermuda

137,950

1.33

6

 AIA Singapore Private Limited

220,719

2.13

 

 Total

2,539,231

24.48

 

 

SHAREHOLDING OF SECURITIES (INCLUDING SHARES, WARRANTS, CONVERTIBLE SECURITIES) OF PERSONS (TOGETHER WITH PAC) BELONGING TO THE CATEGORY “PUBLIC” AND HOLDING MORE THAN 5% OF THE TOTAL NUMBER OF SHARES OF THE COMPANY

 

Sl.
No.

Name of the Shareholder

Details of Shares held

 

 

No. of Shares held

As a % of
grand total
(A)+(B)+(C)

 

 

 

 

1

 Pinebridge Asia Partners II LP

1,195,562

11.53

2

 Reliance Capital Limited

715,000

6.89

3

 American International Assurance Company Limited

0

0.00

 

 Total

1,910,562

18.42

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Scooter, Motor Cycles and Mopeds.

 

 

Products :

PRODUCT DESCRIPTION

ITEM CODE

Auto Components

87.08

 

PRODUCTION STATUS [AS ON 31.03.2011]

 

Particulars

Unit

Actual Production

Steering Arm / Slip Yoke

Nos.

49344

Gear Box / Shaft Drive

Nos.

707299

I C Engines

Nos.

7424

Variators

Nos.

174962

 

NOTE: * The installed capacity being of a generic nature is interchangeable between Auto component product groups and as such individual product group capacities cannot be ascertained.

 

 

GENERAL INFORMATION

 

Customers:

·         Tata

·         Force Motors

·         Carraro

·         Cagiva

·         Tomos

·         Husqvama

 

 

No. of Employees :

Information denied by the management.

 

 

Bankers :
  • State Bank of India
  • State Bank of Indore
  • ICICI Bank Limited
  • Punjab National Bank
  • Bank of Baroda
  • IDBI Bank Limited
  • Canara Bank
  • HDFC Bank, Chinchwad, Pune, Maharashtra, India

 

 

Facilities :

SECURED LOAN

As on 31.03.2011

[Rs. in Millions]

As on 31.03.2010

[Rs. in Millions]

Debentures

 

 

75,00,000 - 11.50% Non Convertible Debentures of Rs. 100 each

150.000

171.922

[Rs. 80.00 (Rs. 77.08) per Debenture have been redeemed] [Repayable within one year Rs. 150.000 Millions (Rs. 121.922 Millions)] Interest accrued and due on above

4.075

3.343

From Banks

 

 

Cash Credit

9.633

0.000

From Others

 

 

Term Loan from Others

79.187

80.000

[Repayable within one year Rs. 79.187 Millions (NIL)] Interest accrued and due on above

0.000

0.801

TOTAL

242.895

256.066

 

NOTE:

 

1. Non Convertible Debentures are secured by a first pari-passu charge on Immoveable properties of the Company both present and future and are also secured by first pari - passu charge on moveable fixed assets. In addition to above, first and exclusive charge on the receivables from Tata Motors Limited, second charge by way of hypothecation on the current assets of the Company (both present and future, tangible and intangible) and pledge of 45,79,500 shares held in Kinetic Motor Company Limited. Debentures are redeemable in 15 quarterly installments starting from 31st December, 2007. Debenture redemption premium @ 12.73% is payable on non happening of certain events stipulated in the Debenture subscription agreement. In the event of waiver of debenture redemption premium, rate of interest would be revised at GOISEC yield plus a spread of 4.25%.

 

2. Cash Credit from bank is secured by hypothecation of Stock and Debtors (excluding Tata Motors Limited) and pari – passu second charge on factory land and building at Ahemednagar.

 

3. Term Loan from others is secured by a first pari-passu mortgage and charge on all immoveable properties of the Company both present and future and are also secured by first pari-passu charge on moveable fixed assets. In addition to above second pari passu charge on the current assets of the Company both present and future.

 

 

 

UNSECURED LOAN

As on 31.03.2011

[Rs. in Millions]

As on 31.03.2010

[Rs. in Millions]

Interest Free Sales Tax Loan

 

 

From Government of Maharashtra through SICOM [Including Rs. 2.173 Millions (Rs. 1.144 Millions) due in next 12 months]

17.470

17.501

Short Term Loan

 

 

Others

7.873

7.967

Interest accrued and due on above

0.093

0.094

Other Loans

 

 

Foreign Currency Convertible Bonds *

817.200

829.440

From Others

[Including Rs. Nil (NIL) due in next 12 months]

153.958

160.940

From Directors

32.075

32.417

From Banks

47.585

0.000

TOTAL

1076.254

1048.359

 

NOTE:

 

* Optionally Convertible into Equity Shares upto 5th Feb 2013

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

P.G. Bhagwat

Chartered Accountants

Address :

Pune, Maharashtra, India

 

 

Related Parties :

·         Kinetic Motor Company Limited

·         Athena Financial Services Limited

·         Jaya Hind Sciaky Limited

·         Kinetic Communications Limited

·         Kinetic Marketing and Services Limited

·         Ajinkya Holdings Private Limited

·         Micro Age Instruments Private Limited

·         Ajinkya Auto Fab Limited

·         Kinetic Hundai Elevator and Movement Technologies Private Limited

·         Chrysalis Castings Private Limited

·         Chrysalis Financial Services Private Limited

·         Ravindra Software Private Limited

·         JHS Taigene Electrical Company Private Limited

·         Ducati Energia Private Limited

 

 

CAPITAL STRUCTURE

 

As on 31.03.2011

 

Authorised Capital :

No. of Shares

Type

Value

Amount

19360202

Equity Shares

Rs.10/- each

Rs.193.602 Millions

15000000

Redeemable Non Convertible Non Cumulative Preferences Shares

Rs.10/- each

Rs.150.000 Millions

1507400

Optionally Convertible Cumulative Preference Shares

Rs.156/- each

Rs.235.154 Millions

320500

Redeemable Cumulative Preference Shares

Rs.156/- each

Rs.49.998 Millions

1923080

Compulsorily Convertible Cumulative Preference

Shares

Rs.156/- each

Rs.300.000 Millions

524560

Unclassified Shares

Rs.10/- each

Rs.5.246 Millions

 

Total

 

Rs.934.001 Millions

 

Issued Capital :

No. of Shares

Type

Value

Amount

10371968

Equity Shares

Rs.10/- each

Rs.103.720 Millions

15000000

Redeemable Non Convertible Non Cumulative Preferences Shares

Rs.10/- each

Rs.150.000 Millions

102000

Optionally Convertible Cumulative Preference Shares

Rs.156/- each

Rs.15.912 Millions

320500

Redeemable Cumulative Preference Shares

Rs.156/- each

Rs.49.998 Millions

 

Total

 

Rs.319.630 Millions

 

 

Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

10371968

Equity Shares

Rs.10/- each

Rs.103.720 Millions

15000000

Redeemable Non Convertible Non Cumulative Preferences Shares

Rs.10/- each

Rs.150.000 Millions

102000

Optionally Convertible Cumulative Preference Shares

Rs.156/- each

Rs.15.912 Millions

320500

Redeemable Cumulative Preference Shares

Rs.156/- each

Rs.49.998 Millions

 

Total

 

Rs.319.630 Millions

 

NOTE:

 

1. Out of above Equity shares 18,85,450 (18,85,450) Equity Shares allotted as fully paid up Bonus Shares on Capitalization of the General Reserve.

 

2. Out of above Equity Shares 36,700 (36,700) Equity Shares allotted under Employee Stock Option Scheme.

 

3. Redeemable Non Convertible Non Cumulative Preference Shares have been agreed to be redeemable on 31.12.2011. Redemption premium @ 14.00 % p.a. is payable at the time of redemption

 

4. Each Optionally Convertible Cumulative Preference Share (OCCPS ) is convertible into one fully paid up equity share of the face value of Rs. 10/- each at a premium of Rs. 146/- per share within 18 months from the date of allotment (i.e. 30.12.2006 w.r.t. 36,923 shares; and 11.1.2007 w.r.t. 65,077 shares) at the option of the allottee. The OCCPS shall carry a preferential right to be paid a fixed rate of dividend @ 1% p.a. due and payable on the date of their conversion into equity shares or such other date(s) as may be acceptable to allottee. If any OCCPS is not converted into equity shares, such unconverted preference shares shall carry preferential right to be paid a fixed rate of dividend @ 8.50% p.a. due and payable on the date of their redemption or such other date(s) as may be acceptable to the allottee and will be redemeed any time after expiry of a period of 5 years from the date of allotment at the option of the Company subject to necessary consent and approval. The option to convert has lapsed.

 

5. Redeemable Cumulative Preference Shares shall be redeemed at the option of the Company at any time after the expiry of a period of 5 years from the date of allotment i.e. 30.12.2006, subject to necessary consent or approval. They will carry a preferential right to be paid a fixed rate of dividend @ 8.50% p.a. due and payable on the date of their redemption or other date(s) as may be acceptable to the allottee.

 

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

319.630

319.630

606.244

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

647.101

695.387

479.235

4] (Accumulated Losses)

(383.299)

(258.936)

(269.367)

NETWORTH

583.432

756.081

816.112

LOAN FUNDS

 

 

 

1] Secured Loans

242.895

256.066

712.354

2] Unsecured Loans

1076.254

1048.359

1075.141

TOTAL BORROWING

1319.149

1304.425

1787.495

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

1902.581

2060.506

2603.607

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

985.590

989.711

1200.527

Capital work-in-progress

51.458

45.517

158.936

 

 

 

 

INVESTMENT

666.495

768.200

882.219

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
181.702
148.168

141.617

 

Sundry Debtors
266.850
206.075

216.390

 

Cash & Bank Balances
44.505
182.162

230.678

 

Other Current Assets
0.020
0.020

0.020

 

Loans & Advances
211.366
237.044

258.862

Total Current Assets
704.443
773.469

847.567

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
305.434
281.898

310.224

 

Other Current Liabilities
147.240
190.394

141.539

 

Provisions
52.731
44.099

42.017

Total Current Liabilities
505.405
516.391

493.780

Net Current Assets
199.038
257.078

353.787

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

8.138

 

 

 

 

TOTAL

1902.581

2060.506

2603.607

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2011

31.03.2010

31.03.2009

 

SALES

 

 

 

 

 

Income

909.265

490.569

645.682

 

 

Other Income

71.522

156.668

185.848

 

 

Profit on Sale of Assets

29.162

166.072

37.245

 

 

TOTAL                                     (A)

1009.949

813.309

868.775

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Material

600.761

375.902

484.740

 

 

Other Expenses

386.380

281.287

397.915

 

 

Voluntary Retirement Scheme Expenses written off

0.000

16.545

47.163

 

 

Expenses Capitalizes

(5.508)

(0.735)

(12.924)

 

 

TOTAL                                     (B)

981.633

672.999

916.894

 

 

 

 

 

Less

PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

28.316

140.310

(48.119)

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

57.786

58.878

174.638

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                (E)

(29.470)

81.432

(222.757)

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

79.859

57.971

90.590

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX (E-F)                (G)

(109.329)

23.461

(313.347)

 

 

 

 

 

Less

TAX                                                                  (H)

0.000

0.000

(66.275)

 

 

 

 

 

 

PROFIT / (LOSS) AFTER TAX (G-H)                  (I)

(109.329)

23.461

(379.622)

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

(1189.470)

(1212.931)

(974.435)

 

 

 

 

 

Add

DEDUCT FROM UNCOMMITTED RESERVES

915.499

930.534

943.563

 

 

 

 

 

 

EXCHANGE GAIN OF PREVIOUS YEAR ADJUSTED AGAINST FIXED ASSETS

0.000

0.000

(3.503)

 

 

 

 

 

 

PROFIT OF MERGED DIVISION FROM APPOINTED DATE

0.000

0.000

144.629

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

(383.300)

(258.936)

(269.368)

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export of Goods [FOB]

158.279

58.635

213.098

 

 

Other Charges

7.465

1.453

7.443

 

TOTAL EARNINGS

165.744

60.088

220.541

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Capital Goods

34.772

68.408

104.186

 

 

Component and Others

58.466

20.663

17.479

 

TOTAL IMPORTS

93.238

89.071

121.665

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

(12.66)

0.72

(70.46)

 

QUARTERLY RESULTS

 

PARTICULARS

 

30.06.2011

30.09.2011

31.12.2011

31.03.2012

Type

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

Net Sales

237.000

220.000

180.600

208.400

Total Expenditure

239.300

233.300

198.600

242.400

PBIDT (Excl OI)

(2.300)

(13.300)

(18.000)

(34.000)

Other Income

4.600

3.800

13.500

10.100

Operating Profit

2.300

(9.500)

(4.500)

(23.900)

Interest

17.700

22.500

22.200

15.9000

Exceptional Items

0.000

(16.000)

5.700

139.600

PBDT

(15.400)

(48.000)

(21.000)

99.800

Depreciation

19.800

22.100

21.700

21.000

Profit Before Tax

(35.200)

(70.000)

(42.800)

78.700

Profit After Tax

(35.200)

(70.000)

(42.800)

78.700

Net Profit

(35.200)

(70.000)

(42.800)

78.700

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2011

31.03.2010

31.03.2009

PAT / Total Income

(%)
(10.83)

2.88

(43.70)

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
(12.02)

4.78

(48.53)

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
(6.47)

1.33

(15.30)

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
(0.19)

0.03

(0.38)

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
3.13

2.41

2.79

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
1.39

1.50

1.72

 

 

LOCAL AGENCY FURTHER INFORMATION

 

DETAILS OF SUNDRY CREDITORS:

 

Particulars

 

31.03.2011

(Rs. in millions)

31.03.2010

(Rs. in millions)

31.03.2009

(Rs. in millions)

Sundry Creditors

305.434
281.898

310.224

 

 

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

Yes

5) Type of Business

Yes

6) Line of Business

Yes

7) Promoter’s background

No

8) No. of employees

No

9) Name of person contacted

Yes

10) Designation of contact person

Yes

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

Yes

19) Payments terms

No

20) Export / Import details (if applicable)

No

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

 

FINANCIAL HIGHLIGHTS:

 

For the Financial Year, the net income from operations was Rs.911.700 Millions, while the net loss after tax was Rs.109.100 Millions.

 

The results for the current financial year are not strictly comparable with the results for the preceding financial year, as the current financial year is a period of 12 months, while the preceding financial year was a period of 9 months.

 

The company has crossed a gross revenue of Rs.900.000 Millions for the financial year 2010 – 2011. As you may be aware, the company entered the field of auto-components few years ago, after totally restructuring its operations from manufacture of two- wheelers to manufacture of various automotive components, and assemblies; and hence this marks a landmark in the company’s continued vision to become a substantially large player in the auto- omponent field.

 

 

2010-11

[12 Months]

2009-10

[9 Months]

 

Net Sales and Income from Operations

Rs. 911.700 millions

Rs. 492.000 millions

Increase in operating income

Material Cost

67%

78%

Substantial decrease in material

cost as a percent of sales

Employment cost

19%

24%

Decrease in employment cost as

a percent of sales

 

Due to the same, the company has registered a EBITDA of Rs. 28.400 Millions during the said period. The Company has registered a net loss of Rs. 109.100 Millions; largely due to the high depreciation costs (Rs. 79.900 Millions) incurred on basis of capex initiatives for new programs.

 

BUSINESS OVERVIEW:

 

During the year, the company continues to consolidate its position as a specialized manufacturer of high technology components and assemblies with a focus on Power Train Components and assemblies. This year there has been a good progress in the ramp-up of existing production programs and development of new programs.

 

As a result, there has been substantial growth in company’s sales revenues. This has been largely led by:

 

·         Commencement and ramp up of mass volume production for gear sets for Tata Nano, the lowest priced car in the world. The supply of Gear-sets for Tata Nano which had commenced last year, saw a significant rampup this year.. The Company has set up a world class manufacturing facility with the best in class equipments to manufacture high quality components in large volumes. The Company is well positioned to grow production in line with the anticipated increased production of Tata Nano and, we expect this program to grow further in the coming years.

 

·         Ramp up of supply of key power-train components and assemblies for different scooter models of Mahindra Two Wheelers Limited (MTWL), a company in which Kinetic Motor Company Limited, an entity promoted by the Company and where it holds a substantial equity, holds a 20% equity stake. The company supplies various engine and transmission assemblies to MTWL, one of India’s fastest growing forces in the Indian 2 wheeler field. Start up for programmes for transmission components for Mahindra Farm Equipment Sector (FES), the world’s largest producer of tractors.

 

·         Start up for programmes for Mahindra Auto Sector, one of country’s largest and fastest growing automobile Companies

 

·         Start up of relationship with Enfield, one of country’s premium manufacturer of top end motorcycles by supplying painted parts to the company.

 

As a result of the above, KINETIC’s revenues have increased from Rs.491.900 Millions in the financial year 2009-10 (9 months) to Rs.911.700 Millions in the financial year 2010-11 (12 months).

 

Continued growth in the Indian automotive industry gives the confidence to the Directors that the Company would continue to see revenue increase from existing programs, though at a pace lower than the last year. The company remains diversified in its product category and customer base.

 

In addition, the company has made significant progress on development of prestigious new contracts, namely: complete Gear box assembly development for Mahindra Navistar and Piaggio.

 

These new programs have been under development and testing during 2010-11 and they are now nearing completion. Being large and complex programmes, company expects them to start in the coming financial year and gain momentum in the 3rd quarter of the year, to be productionised during 2011-12, Further, the Company continues to add more parts from its existing customers including Mahindra and Mahindra, Carraro, Tata Motors as well as Tomos SPA. Once the new programs are in full production and based on projections given by their customers, company is confident of further increasing its revenues.

 

With a quality system set up in tune with the requirements of ISO 9001, and with ISO/TS 16949:2002 certification, the Company plans to leverage its skills in domestic as well as international market, by further striving for total customer satisfaction through relationship building and providing superior products and technological solutions to its customers. In the coming years, the Company will focus on strengthening its technological base and customer relationships to establish its position as a leading Power train components and assemblies specialist. The Company would also like adopt best manufacturing practices and has appointed the TPM club of India to embark upon the journey of TPM to meet its objectives of zero breakdowns, quality improvements, efficiency maximization and cost savings.

 

FINANCE OVERVIEW:

 

After achieving a significant reduction in debt in the preceding year, the Company has been successful in obtaining working capital limits of Rs.100.000 Millions, from Saraswat Co-operative Bank Limited.

 

INDUSTRY OVERVIEW:

 

The Indian auto component industry is one of India's high growth industries with good future prospects owing to the expected growth in the Indian auto industry as well as cost competitiveness of Indian manufacturing from a global supply point of view. From a low-key supplier providing components to the domestic market alone, India has emerged as one of the key auto components centres in Asia and is today seen as a favorite destination of global auto majors. India is now a supplier of a range of high-value and critical automobile components to global auto makers such as General Motors, Toyota, Ford and Volkswagen, amongst others.

 

As per an Automotive Component Manufacturers Association of India (ACMA) report, the turnover of the auto component industry was estimated at over US$ 26 billion in 2010-11, a CAGR of 21 per cent since 2004-05.

 

FUTURE OUTLOOK:

 

The global automotive industry is witnessing tremendous and unprecedented changes these days. This industry is slowly and gradually shifting towards Asian countries, mainly because of saturation of automobile industry in the western world. The principal driving markets for Asian automotive industry are China, India and ASEAN nations. SIAM (society of Indian Automobile manufacturers) have forecasted a 18 – 21% growth for Light Commercial Vehicles, a 16 – 18% growth for Passenger Cars, a 12 – 14% growth for Utility vehicles and a 10 – 12% growth for heavy Commercial vehicles in 2011 – 2012 over the previous year. The 2 wheeler industry continue to grow at a large pace.

 

The company is manufacturing components and assemblies to all the above segments, in addition to non-auto segments such as tractors, recreational products and other construction requiring equipment. Its customer base includes many major Indian players like Force Motors, TATA motors, Mahindra and Mahindra as well as various export customers from Europe and USA and hence is slated to make complete use of this opportunity.

 

The company has a large infrastructure and a diversified rich technical experience that it can utilize to capture this growth trend of the auto industry.

 

Thus, the outlook of the company is promising with continuous growth in terms of value and volume. In the coming years, the Company will focus on further strengthening its technological base and customer relationships to establish its position as a leading Power train components and assemblies specialist.

 

AWARDS AND RECOGNITIONS:

 

The company has received the prestigious Regional Award as “Star Performers in Product Group Trophy” in the category of Large Enterprises by EEPC India (Engineering Export Promotion Council). This award recognizes the company’s efforts in successfully increasing exports from India and has come due to the increased volume, ability to meet stringent quality parameters, and on time delivery and other performance related parameters.

 

CONTINGENT LIABILITIES:

 

Particulars

 

31.03.2011

(Rs. in millions)

31.03.2010

(Rs. in millions)

Income Tax matter under appeal, approx

10.592

10.592

Sales Tax matter under appeal

46.523

32.852

Excise Duty in dispute

40.578

40.578

Octroi Duty in dispute (High court Order received in Company's favour but the case is in appeal before Supreme Court hence shown in Contingent Liability.)

33.574

33.574

ESIC liability in dispute

0.126

0.126

Municipal Property Tax in dispute

22.322

20.496

Service Tax in dispute

6.502

6.502

Labour Cases

1.306

1.684

Custom Duty

0.682

0.682

General Surety Bond executed in favour of Excise Dept for JHS Taigene Electrical Company Private Limited

30.000

30.000

Total

192.205

177.086

 

NOTE: Income Tax matter under appeal, Rs.10.592 Millions (Previous period Rs. 10.592 Millions) is excluding Rs. 82.115 Millions (Rs. 82.115 Millions) in respect of which favourable decision has been given by the Income Tax Appellate Tribunal, Pune on similar grounds in an earlier assessment year.

 

FIXED ASSETS:

 

  • Land
  • Leasehold Land
  • Dies Jigs and Fixtures
  • Freehold Land
  • Building
  • Plant and Machinery
  • Furniture and Fixtures
  • Computer
  • Computer Software
  • Office Equipments
  • Electrical Installations
  • Vehicles
  • Technical Know-how

 

STATEMENT OF STANDALONE AUDITED FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED ON 31ST MARCH, 2012

 

Rs. in Millions

PARTICULAR

IMMEDIATELY PRECEDING QUARTER ENDED

QUARTER ENDED

CURRENT ACCOUNTING YEAR ENDED

 

31.12.2011

31.03.2012

31.03.2012

 

UNAUDITED

UNAUDITED

AUDITED

 

(3 MONTHS)

(3 MONTHS)

(12 MONTHS)

 

 

 

 

(a) Net Sales / Income from operations

173.400

208.400

830.700

(b) Other Operating Income

0.000

0.000

0.000

Total Income

173.400

208.400

830.700

Expenditure

 

 

 

Cost of material consumed

119.000

129.200

539.000

Purchases of stock in trade

0.000

0.000

0.000

Changes in inventories of finished goods, work in progress and stock in trade

(8.700)

(6.500)

(1.600)

Employee benefits expenses

45.500

46.200

185.300

Depreciation and amortization expenses

21.700

21.000

84.700

Other expenses

42.800

60.500

193.600

Total

220.200

263.500

1000.900

Profit from operations before other income, interest and exceptional Items

(46.800)

(55.100)

(170.200)

Other income

13.500

10.100

34.700

Profit before interest and exceptional Items

(33.300)

(45.000)

(135.500)

Interest

22.300

15.900

77.900

Profit after Interest but before Exceptional Items

(55.600)

(60.900)

(213.400)

Exceptional Items

 

 

 

Profit / (loss) on sale of assets

0.000

153.900

153.900

Unrealized exchange fluctuation (loss) / gain

12.900

(14.300)

(9.900)

Profit (+)/Loss(-) from Oridinary Activities before tax

(42.800)

78.700

(69.300)

Tax expense

0.000

0.000

0.000

Net Profit (+)/Loss(-) from Ordinary Activities after tax

(42.800)

78.700

(69.300)

Extraordinary items

0.000

0.000

0.000

Net Profit (+) / Loss (-) for the year period

(42.800)

78.700

(69.300)

Paid up equity share capital (Face value of Rs.10/- per share)

103.700

103.700

190.100

Reserves excluding revaluation reserves as per balance sheet of previous accounting year

--

--

--

Earnings per share (EPS)

 

 

 

 (a) Basic and diluted EPS before Extraordinary items

for the period, for the year to date and for the

previous year (not to be annualised)

(6.65)

4.92

(9.35)

(a) Basic and diluted EPS before Extraordinary items

for the period, for the year to date and for the

previous year (not to be annualised)

(6.65)

4.92

(9.35)

Public shareholding

 

 

 

          Number of shares

4408432

4408292

4408292

          Percentage of shareholding

42.50

42.50

42.50

 

 

 

 

Promoters and Promoters group Shareholding-

 

 

 

a) Pledged /Encumbered

 

 

 

Number of shares

612000

0.000

0.000

Percentage of shares (as a % of total shareholding of the promoter and promoter group)

10.26

0.000

0.000

Percentage of shares (as a % of total share capital of the company)

5.90

0.000

0.000

 

 

 

 

b) Non  Encumbered

 

 

 

Number of shares

5351536

5963676

5963676

Percentage of shares (as a % of total shareholding of the promoter and promoter group)

89.74

100.000

100.000

Percentage of shares (as a % of total share capital of the company)

51.60

57.50

57.50

 

STANDALONE STATEMENT OF ASSETS AND LIABILITIES

 

Particular

As on 31.03.2012

[Rs. in Millions]

EQUITY AND LIABILITIES

 

SHAREHOLDERS FUND

 

Share capital

319.600

Reserves and surplus

190.100

Money received against share warrants

0.000

Total

509.700

 

 

NON-CURRENT LIABILITIES

 

Long-term borrowings

1240.600

Deferred tax liabilities (Net)

0.000

Other long-term liabilities

67.000

Long-term provisions

46.800

Total

1354.400

 

 

CURRENT LIABILITIES

 

Short-term borrowings

190.600

Trade payables

240.200

Other current liabilities

162.000

Short-term provisions

13.500

Total

606.300

 

 

TOTAL CURRENT LIABILITIES

2470.500

 

 

ASSETS

 

NON-CURRENT ASSETS

 

Fixed assets

998.800

Non-current investment

763.100

Deferred tax assets

0.000

Long-term loans and advances

94.300

Other non-current assets

0.000

Total

1856.200

 

 

Foreign currency monetary item translation differences account

18.800

 

 

CURRENT ASSETS

 

Current investment

0.200

Inventories

197.900

Trade receivables

304.300

Cash and cash equivalents

17.500

Short-term loans and advances

75.200

Other current assets

0.400

Total

595.500

 

 

TOTAL CURRENT ASSETS

2470.500

 

NOTE: # Includes Rs.935.000 Millions of FCCBs, with respect to which there is an in-principle consent from FCCB holders for extension of its date of repayment form February, 2013 to February, 2014 and as such, the same are classified as long term borrowings.

 

NOTE:

 

1.       The above results are reviewed and recommend by the Audit Committee and taken on record and approved by the board of directors in its meeting held on 31st May, 2012.

 

2.       Pursuant to the notification dated December 29, 2011 issued by the Ministry of Corporate affairs amending the Accounting Standard 11 the company has exercised the option as per Para46A inserted in the Standard for long term monetary liabilities. Consequently, on long term Monetary Liability, exchange differences loss of Rs.18.800 millions is carried forward in the foreign exchange monetary item Translation Differences Accounts as on March 31, 2012 and will be amortized over the balance period o the monetary liability. As a result of above change, exchange differences gain amounting to Rs.7.300 Millions for the quarter ended 31st March, 2012 (Rs.16.600 Millions loss for the quarter ended 31st December, 2011) has not been credited/charged to profit and loss account during respective periods resulting in increase/reduction of loss by corresponding amounts. Due to this change, figures of previous periods are not comparable.

 

3.       The figures of the last quarter are balancing figures between the audited figures in respect of the full financial year and the published year to date figures upto the third quarter of the respective financial year.

 

4.       Figures for the previous have been regrouped/rearranged, wherever necessary to conform to current period’s classification.

 

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.56.92

UK Pound

1

Rs.88.90

Euro

1

Rs.71.25

 

 

INFORMATION DETAILS

 

Information Gathered by :

SBA

 

 

Report Prepared by :

TPT


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

3

PAID-UP CAPITAL

1~10

4

OPERATING SCALE

1~10

4

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

4

--PROFITABILIRY

1~10

3

--LIQUIDITY

1~10

3

--LEVERAGE

1~10

3

--RESERVES

1~10

4

--CREDIT LINES

1~10

3

--MARGINS

-5~5

-

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

NO

--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

YES

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

31

 

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

-

NB

                                       New Business

-

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.