Kotak Institutional Equities has raised concerns over inconsistencies in related-party disclosures made by Kaynes Technologies and its subsidiaries, highlighting mismatches in inter-company transactions and year-end balances.
According to Kotak’s review, disclosures made by Iskraemeco, a subsidiary, do not align with those reported by Kaynes Technology and Kaynes Electronics Manufacturing for FY2025.
Key discrepancies highlighted
1. Purchases not matched
Iskraemeco’s related-party filings report purchases of Rs 1.8 billion from Kaynes Electronics Manufacturing in FY2025. However, these purchases do not appear in the related-party disclosures of Kaynes Electronics Manufacturing itself.
2. Year-end balances not mirrored
Iskraemeco has disclosed:
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Payables: Rs 3.2 billion to Kaynes Technology and Rs 1.8 billion to Kaynes Electronics Manufacturing
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Receivables: Rs 1.9 billion from Kaynes Technology
Kotak notes that these figures are absent from the related-party disclosures of the two Kaynes entities, despite being reflected in Iskraemeco’s statements.
3. Large overdue receivables
Iskraemeco’s filings show that almost all current receivables are due from the parent. Notably, Rs 458 million of these receivables have remained outstanding for over a year, raising concerns about collection timelines and financial reporting clarity.
What the discrepancies indicate
Kotak points to a material mismatch between disclosures across the group, signalling potential issues in accounting consistency, reconciliation of inter-company transactions, and transparency in reporting.
