The Directors present the 41st Annual Report on the business and
operations of Kinetic Engineering Limited and the Audited Financial
Accounts for the financial year ended 31st March, 2012.
During Financial Year 2011-12, the total revenue was Rs. 101.93 crore,
while the net loss after tax was Rs. 6.93 crore.
During Financial Year 2011-12, the materials cost reduced from 66.07 %
to 64.68 % over the last year and the operating cash profit improved
from (294) lac to 154 lac.
In financial Year 2011-12 the company also registered an EBITDA of Rs.
During the Financial Year 2011-12 there was a marginal reduction of the
revenue from operations - Rs. 83.07 crore in FY 2011-12 against Rs.
90.93 crore in FY 2010-11. This reduction has been due to a few
temporary reasons - mainly due to the reduction in demand from Mahindra
Two Wheelers Limited, as well as from the Tata Motors. The demand from
both these customers is expected to normalise and increase in the
As you may be aware, your 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- component field.
Research & Development
Research and development is viewed as crucial for development of the
Company. These activities add in expanding and upgrading the product
portfolio and improving the offerings to the customers.
Conservation of energy
Some of the measures for conservation of energy undertaken during the
period under review were:
1. By continuous monitoring, Unity Power factor is maintained through
out year, saving Rs.42 lacks as an Incentive in electricity bills.
2. Studied the peak and lowest demand of compressed air for different
shops and accordingly compressor run pattern decided and implemented
results in saving of electrical power of Rs.3.5 lacks per year.
3. Mercury and sodium street lights replaced by modern CFL of low
4. Thyrister control AC drive for heaters installed for sursulf salt
bath furnace maintaining temperature at 565 degree Celsius constantly
results in saving of Rs.63000/- per year.
5. Compressed air pipe of nylon braded is replaced with PU tube
fittings in Gear box assembly line and Aluminum machine shop.
6. CFL spiral lamps fitted in office area replacing 40 watt tube
7. In Aluminum line energy efficient tube fittings installed,
replacing 250 watt mercury lamps. Saving Rs. 2 Lacks per year.
8. For paint baking and bond rising tank water heating thermopac
operates during load period instead of continuous. Savings Rs.1.5
lacks per year.
9. Compressed air measurement carried out for all machines in
10. About 3500 liters of oil is extracted from drained coolant per
11. Compressed air leakages from the welded joints in pipe line
12. Fire hydrant line 3 inches under ground water leakage arrested by
replacing with new line, save about 5 lacks liters of water per year.
The above measures have resulted in significant saving in energy cost.
Foreign exchange earnings and outgo
The information on foreign exchange earnings and outgo is contained in
Point No. 10 & 11 in Notes to the Accounts. Directors responsibility
Pursuant to Section 217(2AA) of the Companies Act, 1956, the Directors
1. In preparation of the accounts for the period under review, the
Company has followed the applicable accounting standards
2. Appropriate accounting policies have been selected and applied
consistently and the judgments and estimates made are reasonable and
prudent so as to give a true and fair view of the state of affairs of
the company as on 31st March, 2012.and of the profit of the company for
the year ended on that date.
3. Proper and sufficient care has been taken for the maintenance of
adequate accounting records in accordance with the provisions of the
Companies Act, 1956 for safeguarding the assets of the company and for
preventing and detecting fraud and other irregularities
4. The annual accounts for the period under review have been prepared
on a ''going concern'' basis Corporate governance
Pursuant to Clause 49 of the Listing Agreement with Stock Exchanges, a
report on Corporate Governance with certificate of the Auditors of your
company on Compliance with the conditions of Corporate Governance is
given as annexure to the Directors'' report.
During the period under review fixed deposits amounting to Rs.0.10 lac
were repaid on maturity. The balance as on 31.3.2012 standing in the
fixed deposit account was Rs.0.75 lac.
In accordance with the provisions of the Companies Act, 1956 as well as
the Articles of Association of the Company, Dr. N. A. Kalyani, Mr. S.
R. Kotecha & Mrs. Sulajja Firodia Motwani, directors, retire at the
ensuing Annual General Meeting, and are eligible for re-appointment.
The directors Mr. Arun H. Firodia, Mr. Ajinkya A. Firodia & Mrs.
Sulajja Firodia Motwani are related to each other.
Mr. Jinendra H. Munot was appointed as an Additional Director by the
Board, and holds office as such director until the ensuing Annual
General Meeting. The Company has received a notice u/s 257 of the
Companies Act, 1956, proposing the candidature of Mr. Jinendra H. Munot
as a director of the Company.
Mrs. Sulajja Firodia Motwani and Mr. Arun H. Firodia were appointed as
Vice - Chairperson and Chairman by the Board of Directors in their
meetings respectively held on 9th December 2011 and 30th May 2012.
Members are requested to approve their appointment.
The auditors M/s P. G. Bhagwat, Chartered Accountants, hold office
until the ensuing Annual General Meeting, and have furnished a
certificate in terms of Sec. 224(1) of the Companies Act, 1956, about
Particulars of Employees as required under Section 217 (2A) of the
Companies Act, 1956 read with Companies (Particulars of Employees)
Rules, 1975 form part of this report. However, as per the provisions of
Section 219(1)(b)(IV) of the Companies Act, 1956, the report and the
accounts are being sent to the shareholders of the company, excluding
the statement of particulars of employees under Section 217(2A) of the
Companies Act. Any shareholder interested in obtaining a copy of the
said statement may write to the Company at the Registered Office of the
The directors express their sincere thanks to Reliance Capital Limited,
Clearwater Capital Partners India Limited, banks, suppliers and
stakeholders for the support extended to the Company and also wish to
place on record their appreciation of the dedicated services rendered
by the employees of the Company.
For and on behalf of the Board of Directors
A. H. Firodia
Pune : 30th May, 2012
Regd. Off. :
D1Block, Plot No.18/2, MIDC, Chinchwad, Pune - 411019.