Kineco Shares

Financial Report Summary

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.