Kineco Shares Financial Reports

Kineco Shares

Kineco Limited Consolidated Financial Statements Summary: **General Company Information:** * Kineco Limited is a public limited company incorporated in India on October 10, 1994. * Its registered office is located at plot no. 41 Pilerne Industrial Estate, Pilerne, Bardez - Goa 403511, is a multi-dimensional composite producer having state-of-the-art manufacturing facilities. * Kineco offers a range of composite materials for industries like Aerospace, Defense, Railways, Automotive, Motorsport, Telecommunication, and Chemicals. * Subsidiaries include Kineco Alte Train Technologies Private Limited (89.66% stake) and Kineco Kaman Composites India Private Limited (51% stake). * Indo National Limited, through Helios Strategic Systems Limited, holds a 51% controlling stake in Kineco. * Kineco signed an agreement on October 14, 2021, to form a Joint Venture with Exel Composites Oyj for developing the Indian pultrusion market, approved for issue by the Board of Directors on May 25, 2024. * The financial statements are prepared in Indian Rupees (INR), with all values generally rounded to the nearest lakhs. **Auditor's Report:** * The report covers the consolidated financial statements, including the Balance Sheet as of March 31, 2024, the Statement of Profit and Loss, the Statement of Changes in Equity, and the Statement of Cash Flows for the year then ended. * The auditor's opinion is that the consolidated financial statements give a true and fair view in conformity with Indian Accounting Standards (Ind AS) and other accounting principles generally accepted in India. * The audit was conducted in accordance with Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013. * The auditor relied on the reports of other auditors for the financial statements of two subsidiaries. * The auditor's report mentions qualifications or adverse remarks by auditors in the Companies (Auditor's Report) Order (CARO) report of the associate company, addressing issues such as cash losses, use of short-term funds for long-term purposes, and the ability to meet liabilities. * The report also notes a lack of audit trail features in the accounting software used. * Internal financial controls over financial reporting of the Holding Company and its subsidiary companies, are adequate and were operating effectively as at March 31, 2024. **Financial Statement Highlights (Values are in Lakhs of INR unless otherwise specified):** * **Balance Sheet:** * Total Assets: 26,565.75 (2023: 23,180.38) * Non-current Assets: 8,625.76 (2023: 6,883.7) * Property, Plant & Equipment (PPE): 6,733.21 (2023: 5,658.02) * Current Assets: 17,939.99 (2023: 16,296.68) * Inventories: 3,919.7 (2023: 2,793.38) * Trade Receivables: 8,897.43 (2023: 9,131.68) * Cash and Cash Equivalents: 3,076.3 (2023: 2,165.43) * Total Equity: 5,189.18 (2023: 4,454.04) * Total Liabilities: 21,376.57 (2023: 18,726.34) * Non-current Liabilities: 5,214.8 (2023: 5,305.43) * Current Liabilities: 16,161.77 (2023: 13,420.91) * **Statement of Profit and Loss:** * Revenue from Operations: 17,452.32 (2023: 16,722.23) * Other Income: 567.39 (2023: 216.33) * Total Expenses: 16,908.82 (2023: 17,806.36) * Profit Before Tax: 1,110.89 (2023: -867.8) * Total Tax Expense: 344.01 (2023: -51.85) * Total Profit (Loss) for the Period: 766.88 (2023: -815.95) * Basic and Diluted Earnings per Share from Continuing Operations: 11.74 (2023: -13.62) * **Cash Flow Statement:** * Net cash flows from operating activities: 5,384.69 (2023: -1,380.79) * Net cash flows from investing activities: -1,651.29 (2023: -1,219.91) * Net cash flows from financing activities: -2,924.02 (2023: 1,816.61) * Net Increase in Cash and Cash Equivalents: 910.87 (2023: -790.18) **Key Ratios and Other Information:** * Basic and Diluted Earnings per Share: INR 11.74 (2023: INR -13.62) * Accounting software used did not have a feature of recording audit trail (edit log) facility. * The Company has not proposed, declared, or paid any interim or final dividend during the year. * The Management represents that no funds have been advanced or loaned to any intermediaries with the understanding that they shall lend or invest in other entities ("Ultimate Beneficiaries"). * Similarly, no funds have been received from any person with the understanding that the Company shall lend or invest in other entities ("Ultimate Beneficiaries"). **Accounting Policies:** * The financial statements are prepared in accordance with Ind AS. * Assets and liabilities are classified as current and non-current based on the Group's normal operating cycle. * Property, plant, and equipment are carried at cost less depreciation and impairment. * Inventories are valued at the lower of cost (weighted average) and net realizable value. * Revenue is recognized when control of goods or services is transferred to the customer. * Tax expenses are provided for based on current tax laws and deferred tax is recognized using the balance sheet method. **Contingencies and Commitments:** * Contingent liabilities include claims against the company not acknowledged as debt (817.98 Lakhs) and guarantees given for letters of credit. * Commitments include estimated amounts for contracts remaining to be executed on capital account (52.73 Lakhs). * Capital commitments, details relating to persons referred to in items A, and B in the original document have been provided, with details on remuneration, expenses, and amounts relating to guarantees. * Details of transactions with related parties are disclosed.

Kineco Shares

Kineco Limited Consolidated Financial Statements Summary (Period 01/04/2022 to 31/03/2023) **General Information:** * **Company Name:** Kineco Limited. * **Corporate Identity Number:** U24134GA1994PLC001672. * **Permanent Account Number (PAN):** AABCM8681P. * **Registered Office Address:** PLOT NO 41PILERNE INDUSTRIAL ESTATE PILERNE BARDEZ GOA GOA INDIA - 403511. * **Type of Industry:** Commercial and Industrial. * **Reporting Period:** 01/04/2022 to 31/03/2023 (compared to 01/04/2021 to 31/03/2022). * **Report Type:** Consolidated Financial Statements. * **Presentation Currency:** Indian Rupees (INR) in Lakhs. * **Cash Flow Statement Method:** Indirect Method. **Auditor's Report:** * The report is addressed to the Members of Kineco Limited. * The auditor has audited the consolidated financial statements of Kineco Limited and its subsidiaries and associate company ("the Group"). * **Opinion:** The consolidated financial statements provide a true and fair view in conformity with Indian Accounting Standards (Ind AS) and other accounting principles generally accepted in India. * The audit was conducted in accordance with Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013. * The Board of Directors is responsible for preparing the financial statements. * The auditor's responsibility is to express an opinion on the financial statements based on the audit. * Auditors V.B. Prabhu Verlekar & Co. did not audit the financial statements of two subsidiaries, whose financial statements reflect total assets of Rs. 7,188.28 lakhs as at 31 March 2023, total revenues of Rs. 5,234.89 lakhs and net cash outflows amounting to Rs. 32.95 lakhs for the year ended on that date, and one associate company whose financial statements reflect loss of Rs. 298.64 lakhs as considered in the consolidated Ind AS financial statements. **Key Financial Figures:** * **Equity Share Capital:** ₹626.42 Lakhs (consistent across 31/03/2021, 31/03/2022 and 31/03/2023). * **Revenue from Operations:** ₹16,722.23 Lakhs (2022-23) vs ₹20,165.16 Lakhs (2021-22). * **Loss for the Period:** ₹-815.94 Lakhs (2022-23) vs Profit of ₹686 Lakhs (2021-22). * **Basic Earnings per Share:** ₹-13.62 (2022-23) vs ₹9.93 (2021-22). * **Total Assets:** ₹23,180.38 Lakhs (31/03/2023) vs ₹20,298.36 Lakhs (31/03/2022). * **Total Equity:** ₹4,454.04 Lakhs (31/03/2023) vs ₹5,552.08 Lakhs (31/03/2022). * **Total Liabilities:** ₹18,726.34 Lakhs (31/03/2023) vs ₹14,746.28 Lakhs (31/03/2022). **Financial Ratios:** * **Current Ratio:** 1.21 (2022-23) vs 1.56 (2021-22). Reduction in current ratio due to losses in FY 22-23 in Kineco limited resulting in reduction in current Assets * **Debt Service Coverage Ratio:** 0.93 (2022-23) vs 1.16 (2021-22). Losses in FY 22-23 compared to FY 21-22 in Kineco Limited * **Inventory Turnover Ratio:** 3.51 (2022-23) vs 4.54 (2021-22). Decrease in Revenue of FY 22-23 compare to FY 21-22 in Kineco Limited * **Trade Payable Turnover Ratio:** 2.56 (2022-23) vs 3.68 (2021-22). payments delayed due to delayed receipts from customers * **Net Profit Ratio:** -0.05 (2022-23) vs 0.03 (2021-22). More Losses in FY 22-23 compared to FY 21-22 in Kineco Limited * **Return on Investment:** -0.04 (2022-23) vs 0.03 (2021-22). More Losses in FY 22-23 compared to FY 21-22 in Kineco Limited * **Debt-Equity Ratio:** 3.06 (2022-23) vs 1.9 (2021-22). Equity has reduced due to loss in FY 22-23 and additional debt added in FY 22-23 compared to FY 21-22 * **Trade Receivables Turnover Ratio:** 2.18 (2022-23) vs 3.22 (2021-22). Increase in Debtors as of Mar 23 compared to Mar 22 due to delay in receipts from few customers. * **Net Capital Turnover Ratio:** 5.81 (2022-23) vs 3.95 (2021-22). Reduction in current ratio due to losses in FY 22-23 in Kineco Limited * **Return on Capital Employed:** -0.19 (2022-23) vs 0.11 (2021-22). Losses in FY 22-23 compared to FY 21-22 in Kineco Limited **Key Accounting Policies:** * **Compliance:** The financial statements comply with Indian Accounting Standards (Ind AS). * **Preparation:** The statements are prepared on a going concern basis under the historical cost convention. * **Consolidation:** The group's financial statements are consolidated on a line-by-line basis, eliminating intra-group balances. * **Functional Currency:** The financial statements are presented in Indian Rupees (INR). * **Use of Estimates:** The preparation of financial statements requires management to make estimates and judgments. * **Property, Plant, and Equipment:** Carried at cost less accumulated depreciation and impairment losses. Depreciation is provided on a straight-line basis. * **Intangible Assets:** Stated at cost less accumulated amortization and impairment losses. * **Inventories:** Valued at the lower of cost (weighted average basis) and net realizable value. * **Revenue Recognition:** Revenue is recognized when control over goods or services is transferred to the customer. * **Taxes on Income:** Current and deferred tax are included in the determination of net profit or loss. * **Financial instruments** Financial assets and liabilities are recognised when the Group becomes a party to the contractual provisions of the instruments. Financial assets and financial liabilities are initially measured at transaction values and where such values are different from the fair value, at fair value. * **Leases:** Rentals payable towards leases of land are charged to the Statement of Profit and Loss on a straight-line basis over the lease period. Right-of-use assets are depreciated using the straight-line method. **Subsidiaries and Joint Ventures:** * **Kineco Alte Train Technologies Private Limited:** Kineco Limited holds 89.66% stake. * **Kineco Kaman Composites India Private Limited:** Kineco Limited holds 51.00% stake. * Joint Venture with Exel Composites Oyj to develop the Indian pultrusion market. * **Kineco Exel Composites India Private Limited**: Discontinued share of losses as the share of losses has exceeded the investment in the associate company. **Other Key Information:** * The company has complied with the number of layers prescribed under clause (87) of section 2 of the Companies Act, 2013 read with Companies (Restriction on number of Layers) Rules, 2017. * Impact of recent accounting pronouncements has been assessed. * Details of foreign currency exposures are provided. * Corporate Social Responsibility (CSR) expenditure details are disclosed as per Section 135 of the Companies Act, 2013. * Foreign Currency Exposures: disclosed but not hedged * Trade receivables are subject to confirmation, reconciliation, and adjustments. * The consolidated financial statements were approved by the Board of Directors on May 17, 2023. * The group does not have any transactions with struck-off companies. * The group has complied with the number of layers prescribed under the companies act. **Contingent Liabilities:** * Claims against the company not acknowledged as debt: ₹817.98 Lakhs. * Guarantees: ₹1,835.68 Lakhs. **Other Notes:** * Remeasurements of defined benefit plans impacted other comprehensive income. * Details of related party transactions are provided. * Earnings per share is computed by dividing profit/loss after tax by the weighted average number of equity shares. * There were no material adjustments to prior period items. * There were no changes in accounting policies. * The notes to the financial statements include detailed breakdowns of various balance sheet and income statement items, along with explanations of accounting policies and other relevant information. This summary provides a consolidated overview of Kineco Limited's financial performance and position for the period of 01/04/2022 to 31/03/2023, as reflected in the consolidated financial statements.

Kineco Shares

KINECO LIMITED Consolidated Financial Statements for the period 01/04/2021 to 31/03/2022. **General Information About Company** * **Name & Identification:** KINECO LIMITED, a public limited company (CIN: U24134GA1994PLC001672), is a multi-dimensional composite producer with manufacturing facilities in Goa, India. * **Address:** Registered office and works are located at plot no.41 - Pilerne Industrial Estate, Pilerne, Bardez - Goa 403511. * **Industry & Scope:** Offers a spectrum of composites for Aerospace, Defense, Railways, Automotive, Motorsport, Telecommunication & Chemical Industries. * **Subsidiaries:** Includes Kineco Alte Train Technologies Private Limited (89.66% stake) and Kineco Kaman Composites India Private Limited (51% stake). * **Parent Company:** Indo National Limited is the ultimate holding company via its subsidiary Helios Strategic Systems Limited. * **Reporting Period:** Covers consolidated financial statements from April 1, 2021, to March 31, 2022. * **Impact of COVID-19:** The company operations were impacted due to the Coronavirus disease (COVID-19) pandemic in India in 2020. The management has considered the possible effects that may result from the pandemic on the company's operations during the year, particularly in the first 15 days of the year and also subsequently thereafter, including the impact on carrying amount of receivables, inventories and the company's ability to fulfill existing loan obligations and sourcing of materials. Based on the current indicators of future economic conditions, the management expects to recover the carrying amount of these assets and that there would be sufficient cash flows for repayment of loans. However, the management continues to closely monitor any material changes to future economic conditions. * **Approval:** The consolidated financial statements are approved for issue by the Board of Directors on June 18, 2021. **Auditor's Report** * **Auditor:** V.B. PRABHU VERLEKAR & CO, Chartered Accountants. * **Opinion:** The consolidated financial statements provide a true and fair view in conformity with Indian Accounting Standards (Ind AS) and accounting principles generally accepted in India. * **Basis for Opinion:** The audit was conducted in accordance with Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013. Sufficient and appropriate audit evidence was obtained to provide a basis for the opinion. * **Responsibilities:** Management is responsible for the preparation of the consolidated financial statements. Auditor is responsible for expressing an opinion on the consolidated financial statements based on the audit. Auditor is also responsible for reporting on the internal financial controls system. * **Other Matters:** The auditor did not audit the financial statements of two subsidiaries and one joint venture company; the opinion on the consolidated financial statements, insofar as it relates to the amounts and disclosures included in respect of these entities, is based solely on the report of other auditors. * **Internal Financial Controls:** The parent and its subsidiary companies have, in all material respects, an adequate internal financial controls system over financial reporting. **Key Financial Data (Values in Lakhs of INR Unless Otherwise Specified)** * **Balance Sheet (as of March 31, 2022):** * Total Assets: 20,298.35 * Total Equity: 5,552.08 * Total Liabilities: 14,746.27 * **Statement of Profit and Loss (for the year ended March 31, 2022):** * Revenue from Operations: 20,191.19 * Total Income: 20,925.89 * Total Expenses: 19,771.08 * Profit Before Tax: 1,154.81 * Total Tax Expense: 468.81 * Total Profit: 686 * Profit Attributable to Owners of Parent: 275.47 * Basic Earnings Per Share: 9.93 * **Cash Flow Statement (Indirect Method):** * Net cash flows from operating activities: 2,958.87 * Net cash flows from investing activities: (82.87) * Net cash flows from financing activities: (2,710.22) * Cash and cash equivalents at end of period: 4,017.05 **Key Accounting Policies** * **Compliance:** Prepared in accordance with Indian Accounting Standards (Ind AS). * **Basis of Preparation:** Going concern basis, historical cost convention, accrual method. * **Consolidation:** Line-by-line consolidation of Group companies, elimination of intra-group balances and transactions. * **Functional & Presentation Currency:** Indian Rupees (INR). * **Estimates & Judgments:** Financial statement preparation requires management to make estimates and assumptions. Key sources include useful lives of assets, valuation of deferred tax assets, actuarial valuation, and provisions for contingent liabilities. * **Property, Plant & Equipment:** Carried at acquisition cost less accumulated depreciation and impairment losses. Depreciation is calculated using the straight-line method. * **Intangible Assets:** Stated at cost less accumulated amortisation and impairment losses. Computer software licenses are amortised over their estimated useful life on a straight line basis. * **Impairment:** Reviewed at each Balance Sheet date. An impairment loss is recognised if the carrying amount of these assets exceeds their recoverable amount. * **Leases:** The group recognizes Right of Use (ROU) assets and lease liabilities for most of its leases. * **Inventories:** Valued at the lower of cost (weighted average basis) and net realisable value. * **Cash Flows:** Reported using the indirect method. * **Provisions, Contingent Liabilities & Assets:** Provisions are recognized when the company has a present obligation and outflow is probable. * **Revenue Recognition:** Based on consideration specified in a contract with a customer, revenue is recognized when control over a product or service is transferred to customer. **Additional Key Notes & Disclosures** * **Contingent Liabilities:** Bank guarantees, letters of credit, corporate guarantees on behalf of a joint venture. * **Commitments:** Estimated amount of contracts remaining to be executed on capital account. * **Related Party Transactions:** Names of related parties and their relationships, details of specific transactions, and outstanding balances. * **Financial Instruments:** Details of financial assets and liabilities, measurement at amortized cost or fair value, and related gains/losses. * **Borrowings:** Details on secured and unsecured borrowings, interest rates, and repayment terms. Working Capital Term Loans from Banks are Secured by hypothecation of stocks of Raw Material, Stock in Process, Finished goods, Consumables and book-debts and all other current assets. Secured by mortgage of land and building and movable assets at plot no. 34, 35, 36, 41, 42, 43 and 61A. * **Earnings Per Share:** Method of computation and basic/diluted earnings per share amounts. * **Government Grants:** Government grants are recognized where there is reasonable assurance that the grant will be received and the Group will comply with the conditions attached to them. * **Statement of Changes in Equity:** Details of changes in equity share capital, reserves, and retained earnings. * **Financial Ratios:** Analysis of key financial ratios, including current ratio, debt service coverage ratio, inventory turnover ratio, trade payable turnover ratio, net profit ratio, return on investment, debt-equity ratio, and trade receivables turnover ratio. * **Significant Investments and JV’s:** Details of the company’s investments in subsidiaries, including Kineco Alte Train Technologies Private Limited and Kineco Kaman Composites India Private Limited, and establishment of a Joint Venture * **Impact of COVID-19:** Management expects to recover the carrying amount of assets (receivables, inventories) and that there would be sufficient cash flows for repayment of loans. * **Recent Pronouncements:** Impact of new or amended accounting standards (Ind AS) notified by MCA. * **Employee Benefits:** Discussion of employee benefit plans including defined contribution and defined benefit plans, including actuarial valuation methods and assumptions. * **Inventories:** Valuation at lower of cost and net realisable value. * **Disclosure of Notes on Equity Share Capital Explanatory:** The Company has issued 8,00,000 1% Cumulative Optionally Convertible Preference Shares of Rs. 100/- each * **Subsequent Events:** Subsequent to year end on May 17, 2022 & May 23, 2022 the Group has filed revised return for statement of current assets given as security against the borrowings from banks. Basis the revised returns filed there are no material discrepancies between the books of account and the returns submitted to bank. * **Commitments and contingent liabilities: ** details of guarantees, pending litigations and disputed revenue * **Segment reporting is not applicable** This summary provides a detailed yet concise representation of the financial statements of KINECO LIMITED for the specified period, encapsulating its financial performance, position, and key accounting policies.