Kineco Shares

Financial Report Summary

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.