Some related-party transactions not disclosed inadvertently: Kaynes Tech

The company, however, said that these transactions were not required to be disclosed under the consolidated accounting standards as per the Indian Accounting Standards

Mysore-headquartered Kaynes Technologies on Friday said it had “inadvertently not disclosed” some related-party transactions in its standalone financial statements.

 

The company, however, said these transactions were not required to be disclosed under the consolidated accounting standards, according to the Indian Accounting Standards.

 

Earlier this week, Kotak Institutional Equities flagged, in a report, the inconsistencies in the company’s related-party transactions, an ambiguous accounting treatment of goodwill or reserve adjustments under acquisitions. It also included sharp additions to intangibles for technical know-how, among other issues.

 

“We have observed inconsistencies in the disclosures made by the standalone entity and various subsidiaries on inter-company related transactions for the year and in year-end balances,” Kotak Institutional Equities said in its report.

 

 

The related party transactions flagged by Kotak Institutional Equities include the purchase of ₹180 crore from Kaynes Electronics Manufacturing in 2024-25, year-end payables of ₹320 crore to Kaynes Technology, and receivables of ₹190 crore from the company.

 

Kaynes Technologies, one of the 10 companies setting up a new semiconductor unit in India under the India Semiconductor Mission, had in July announced plans to open a new electronics manufacturing facility in Bhopal for an investment of ₹352 crore.

 

The plant's commercial production is expected to start in 2026, with nearly 1,000 jobs for highly-skilled workers likely to be created.

 

At the Bhopal plant, Kaynes is expected to make products in automotive, aerospace, defence, medical, industrial, internet-of-things, and outer space. It would be using new surface-mount-technology and high precision electronic assembly lines.