According to the brokerage, Iskraemeco reported purchases of Rs 180 crore from Kaynes Electronics Manufacturing that were not reflected in Kaynes Electronics Manufacturing's own related-party disclosures. It also disclosed year-end payables of Rs 320 crore to Kaynes Technology and Rs 180 crore to Kaynes Electronics Manufacturing, along with receivables of Rs 190 crore from Kaynes Technology. These balances were also missing from the parent companies' disclosures. Nearly all of Iskraemeco's receivables were from Kaynes Technology, including Rs 45.8 crore outstanding for more than a year.
The broker also highlighted concerns around goodwill recognition in the Iskraemeco acquisition, a rise in contingent liabilities to Rs 520 crore and a high average borrowing cost of 17.7% for FY2025. It noted that Kaynes capitalised Rs 1.8 billion as technical know-how, including designs and prototypes, during the year.
In a detailed clarification, Kaynes Technologies said the concerns were largely due to disclosure omissions in its standalone financial statements, which have since been rectified. It said the related-party balances and transactions were eliminated at the consolidated level in line with Indian Accounting Standards, but were inadvertently not reported in the standalone accounts. On goodwill, the company said intangible assets related to customer contracts under Ind AS 103 were recognised and netted off against goodwill, and are evaluated annually. It added that contingent liabilities rose mainly due to performance guarantees and corporate guarantees issued to subsidiaries following the Iskraemeco acquisition. Kaynes also defended its borrowing-cost calculations, stating that the effective rate including bill discounting was 10%.
The company maintained that all transactions were part of the overall financial statements and that it has noted the lapses for future compliance.
Kaynes Technology is an end-to-end, IoT-enabled integrated electronics manufacturer offering services across the Electronics System and Design Manufacturing (ESDM) spectrum.
The company posted a strong performance in Q2 FY26. Consolidated net profit jumped 102% year-on-year to Rs 121.4 crore, while revenue rose 58% to Rs 906.2 crore. The order book increased to Rs 8,099.4 crore as of 30 September 2025, compared with Rs 5,422.8 crore a year earlier.
Powered by Capital Market - Live News
Beware of fraudulent tips, unauthenticated news and advice on stock market.
At BOB Capital, your account security is our topmost priority. Beware of receiving fraudulent communications, unauthenticated trading tips and unsolicited calls on trading in stocks from unverified sources, received through Whatsapp, Telegram, SMS, Calls, etc and take an informed decision before investing.
What should you do if you receive a trading tip over phone or SMS?
Report unsolicited messages to the Stock Exchange on +91 8291833676 or on designated email id i.e. feedbk_invg@nse.co.in. Please visit here to understand better.
Please visit CVC website at pledge.cvc.nic.in and take "Integrity Pledge" to be an active part of the "Satark Bharat, Samriddh Bharat" (Vigilant India, Prosperous India).
Filing complaints on SCORES - Easy & quick: a. Register on SCORES portal scores.sebi.gov.in/ b. Mandatory details for filing complaints on SCORES are i. Name, PAN, Address, Mobile Number, E-mail ID. c. Benefits: i. Effective communication ii. Speedy redressal of the grievances.
Valued Customer,
BOB Capital Markets Limited (BOBCaps) is firmly committed to the safety of your wealth. We would like to bring to your notice certain precautions that you certainly must take against potential tele-fraudsters/ unscrupulous and unregistered portfolio managers:
ALWAYS AVOID
We would like to caution you against such fraudulent calls and SMSes and urge you to be alert. Follow the golden rule:
Do not share your Login Credentials or Passwords with anybody
BOBCaps employees / representatives never ask for your password.
Certain tele-fraudsters / unscrupulous and unregistered portfolio managers call customers or SMS them on the pretext of providing investment tips and lure them to invest through their bogus firms by promising huge profits.
Such deceitful callers ask the customer to share his/her login credentials with passwords to allow trading in their accounts, assuring huge returns.
Often trades done in the customer’s accounts are far from the best interest of the customers. Holdings of customers are often sold and with the funds, trades are then placed in illiquid securities at unrealistic prices.
At times, the holdings of customers are sold at prices detrimental to the customer. The so-called “portfolio manager” assures profits, which naturally does not materialize. Customers are deceived into providing access to their trading accounts, thereby allowing such fraudsters access to funds and securities available to execute trades, injurious to the customer’s interest.
In our continuous effort to keep you safeguard from the market related frauds and increase awareness while conducting trades, we request you to go through the Press Release issued by the NSE and would request you to ensure that you do not engage with the individuals and entities mentioned below: