The company said all underlying financials were accurate and insisted there were “no ambiguities or inconsistencies” in goodwill recognition or asset capitalisation. | Photo Credit: istock.com
The clarification comes after the company’s shares plunged about 22.80 per cent in the past five days. On Monday, the shares slipped by 4.55 per cent (as on 10:44 am).
The disclosure has since been rectified and noted for future compliance, said Kaynes’ management. It added that there were no inconsistencies or ambiguities in its books, countering claims made in a recent Kotak Institutional Equities, BNP Paribas and Investec report.
The company said all underlying financials were accurate and insisted there were “no ambiguities or inconsistencies” in goodwill recognition or asset capitalisation.
Kaynes reported FY25 revenue of ₹2,720 crore, up 51 per cent year-on-year, driven by the consolidation of Iskraemeco’s smart metering business. Kaynes acquired Iskraemeco and Sensonic (54 per cent stake) for ₹88.3 crore, recognising ₹114 crore in goodwill. Yet the consolidated balance sheet shows no corresponding rise in goodwill.
The company clarified that these transactions followed Ind-AS 103 accounting standards and that the difference between consideration paid and net assets acquired was netted off to present the financial statements in a “relevant and reliable manner.” Intangible assets of ₹1,150 million from customer contracts, related to smart metering technology, were classified under technical know-how.
The management also countered claims of mismatches between fixed asset additions and cash flow reporting, explaining that the ₹9.5 billion purchase of fixed assets in the cash flow statement includes ₹7.8 billion of PPE, CWIP, and intangibles and ₹1.7 billion on right-of-use assets, net of subsidy adjustments.
Elaborating on the queries around rising receivables and working capital cycles, Kaynes said smart metering receivables, totalling ₹687 crore as of September, include longer-tenure contractual items that will be discounted and reduced. Of this, ₹240 crore is expected to be cleared shortly.
The working capital cycle increase was attributed to typical EMS sector dynamics and long-term capex investments, including OSAT and PCB capacity expansion funded through QIP and subsidies.
The company added that promoter holding remains stable at around 63 per cent, with no dilution planned.
Published on December 8, 2025
