Kaynes Technology India Limited has successfully completed its postal ballot process, with shareholders approving significant leadership changes that will reshape the company's top management structure. The voting results, announced on December 15, 2025, confirm the appointment of a new Managing Director and redesignation of the current leadership.

Voting Results and Shareholder Approval

The e-voting process conducted through National Securities Depository Limited (NSDL) from November 13, 2025, to December 12, 2025, saw overwhelming shareholder support for both proposed resolutions. A total of 1,197 members participated in the remote e-voting process.

New Managing Director Appointment Confirmed

Dr. Muthukumar Narayanaswamy's appointment as Managing Director has been approved for a five-year term from September 24, 2025, to September 23, 2030. With nearly four decades of experience in automotive, rubber, and industrial products sectors, Dr. Narayanaswamy brings extensive expertise in operational excellence and technological transformation to his new role.

Leadership Transition Details

Mr. Ramesh Kunhikannan, the current Managing Director, will transition to the role of Executive Vice Chairman in the category of Whole Time Director. This change will be effective from September 24, 2025, to March 31, 2029, covering his residual term with the company.

Scrutinizer's Report and Compliance

Kalaivani S, Company Secretary (ACS No: 57112), served as the appointed scrutinizer for the postal ballot process. The scrutinizer's report confirmed that all voting procedures were conducted in a fair and transparent manner, adhering to the provisions of the Companies Act, 2013, and SEBI regulations.

The company has filed the voting results and scrutinizer's report with BSE Limited and National Stock Exchange of India Limited, ensuring compliance with Regulation 44 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Strategic Leadership Enhancement

These approved leadership changes reflect Kaynes Technology's strategic initiative to strengthen its management team for future growth in the electronics manufacturing services industry. Dr. Narayanaswamy's extensive background with companies like TTK-LIG Limited, TVS Group, and Cummins Meritor, combined with his Ph.D. in Operations Management, positions the company for enhanced operational excellence.

Mr. Ramesh Kunhikannan, who has been with Kaynes Technology since its incorporation and holds 36 years of experience in strategic planning and business development, will continue contributing to the company's growth in his new executive role. The transition ensures continuity while bringing fresh leadership perspectives to drive the company's expansion in the electronics manufacturing sector.

Kaynes Technology India Limited held a comprehensive business update conference call on December 8, 2025, to address observations raised in a Kotak Institutional Equities report. The management team, led by Executive Vice Chairman Ramesh Kunhikannan and CFO Jairam Sampath, provided detailed clarifications on accounting practices and reaffirmed the company's strong business fundamentals.

Management Response to Key Observations

Iskraemeco Business Performance Clarification

The management corrected several factual inaccuracies in the Kotak report regarding Iskraemeco's performance. Contrary to the report's claim of 28% net margin in H2 FY25, the actual margin was only 9% with revenues of ₹327.00 million and PAT of ₹48.90 million.

The H1 FY25 loss was attributed to significantly lower revenue of ₹85.00 crores, unchanged fixed costs, provisions from due diligence including inventory write-offs, and broader corporate cleanup adjustments.

Goodwill and Intangible Assets Recognition

Kaynes provided detailed explanations of its acquisition accounting practices for Iskraemeco and Sensonic acquisitions in FY25:

The company recognized customer contracts worth ₹115.00 crores as intangible assets under technical know-how, representing design implementation knowledge, hosting, and communication packages for smart metering.

Intangible Assets Capitalization Breakdown

Kaynes clarified the ₹180.00 crores capitalized as technical know-how additions in FY25:

Working Capital and Financial Management

Receivables Management Strategy

The management outlined comprehensive measures to address working capital concerns:

• Smart Meter Receivables: ₹687.00 crores total, including current and non-current portions
• Discount Strategy: Approximately ₹240.00 crores to be discounted off books
• Collection Timeline: Target to maintain collection periods within 90 days
• Supply Chain Finance: Collaboration with foreign banks offering lower interest rates

Borrowing Cost Clarification

Addressing the 17.70% average borrowing cost observation, Kaynes clarified that including bill discounting, the actual interest cost works out to 10.00%, showing improvement from FY24's equivalent calculation of 25.30%.

Business Outlook and Growth Strategy

Revenue Projections and Segment Performance

For FY26, Kaynes projects strong growth across multiple verticals:

OSAT Initiative Progress

The company reported significant milestones in its semiconductor assembly and test operations:

• Client Acquisition: Three major clients - Alpha Omega Semiconductor, Infineon, and Larsen & Toubro
• Commercial Production: First shipments completed, making Kaynes the first in India to ship from this facility
• Funding Status: ₹10.30 billion requirement to be funded through QIP, internal accruals, and government subsidies
• Subsidy Management: Dedicated team established for efficient subsidy documentation and compliance

Governance and Compliance Improvements

Related Party Transaction Disclosure

The management acknowledged an inadvertent omission in related party transaction disclosures in standalone financial statements, which has been rectified. The company is implementing software solutions to ensure comprehensive contra entries for all related party transactions across subsidiaries.

Structural Enhancements

Ramesh Kunhikannan outlined planned improvements:

• Team Expansion: Additional personnel in taxation, finance, and manufacturing
• Leadership Enhancement: Bringing in more senior leadership
• Communication Model: Revisiting and improving stakeholder communication processes
• Internal Controls: Strengthening audit review processes and disclosure checks

Financial Position Update

As of the latest available data, Kaynes Technology's financial metrics show:

The management emphasized that despite the accounting disclosure oversight, there are no underlying governance concerns or business deterioration. The company remains focused on its long-term growth roadmap, with strong momentum in EMS business, OSAT initiatives, and high-end PCB programs positioning India meaningfully in the global semiconductor value chain.