Kevin Group is one of India's oldest and most influential multinational conglomerates. Founded in 1950 by Ronnie Kevin, the company has expanded…

Kevin Group is one of India's oldest and most influential multinational conglomerates. Founded in 1950 by Ronnie Kevin, the company has expanded across industries and geographies, becoming a globally recognized brand. Kevin Group has built a legacy of innovation, ethical business practices, and global expansion. Kevin Agro Limited (KAL), a part of Kevin Group and a listed entity (in top 1000 listed companies) and based in Mumbai, offers a comprehensive range of products designed to enhance efficiency and quality in agriculture. Their offerings include grain moisture meters, mobile grain cleaners, grain analyzers, and grain graders, which are essential for seed and grain testing, processing, and cleaning. These products serve various clients, including grain procurement organizations, seed companies, warehouses, and milling industries such as rice, dal, and flour mills. KAL boasts a modern manufacturing setup equipped with CAD facilities, CNC machines, and precision machine shops. Their in-house R&D department, approved by the Government of India, focuses on continuous product design and process improvements. This dedication to innovation ensures that KAL remains at the forefront of technological advancements in their fields. Consolidated Financial statements are prepared at the end of financial year complying with legal guidelines (incorporating all subsidiaries) and placed before shareholders for approval. Capital structure of KAL includes Corporate Bonds issued two years back. Maturity period was five years. As on date, external credit rating of the securities issued by KAL has improved, making company eligible for issuing new bonds with lower interest rate which will result in cost savings in the form of reduced costs, optimizing the debt structure and enhancing the financial flexibility for the company. Accordingly, CFO suggested feasibility analysis and engage financial advisors to explore refunding options. The most recent invention of KAL has been the development of AI-Powered Robotic Arms. These machines use cameras and sensors to identify ripe fruits and pluck them gently without damaging them. The three important functions of new invention are: Harvesting & Picking AI arms pick fruits and vegetables based on ripeness.Weeding & Planting - Automate seeding and removing weeds.Sorting & Grading Classify produce based on size, shape, and quality. The new invention will replace the processes which were earlier done by labour supplied by labour contractors in the agriculture field thus reducing the inefficiency and also the overall cost to the Companies (having their own farm fields and engaged in manufacturing) will reduce. The brain of Robotic Arms consists of various made up of electronic control systems and uses various items like Micro-controllers, Embedded Processors, Motor Drivers & Controllers etc. Besides this Motion Planning software (developed in house) will be used for intelligent automation. Stainless Steel required for body parts will be purchased from Steels Kevin Limited (SKL), one of the wholly owned subsidiaries and whose accounts are consolidated with KAL, engaged in manufacturing and export of stainless steel. The total purchase done from SKL was 62 Crores. SKL entered in sale transactions with KAL without getting the approval from any authority (shareholders or Board of directors) and at a price less than market price. However, KAL placed the said transaction before the shareholders at the general meeting and ordinary resolution was also passed by Members. For meeting functional requirements, Real-time inverse kinematics (IK) calculations for precise movement are needed. These will be provided by Novelty Inc. based in USA. The manufacturing of Robotic Arms is wholly dependent on technology provided by Novelty Inc. During the year, KAL exported its product named "UNO" to TVIDIA based in USA. Novelty Inc. is holding company of TVIDIA and exercises significant control over the TVIDIAs management for decision-making. Assessing Officer applied transfer pricing provisions under Sections 92-92F on supply of UNO and issued demand notice considering price of uncontrolled transaction relating to financial year immediately preceding the current year. Later on during the assessment proceedings, AO used the price of uncontrolled transaction during the year of transaction. Management has asked the accounts department to prepare a detailed presentation indicating the calculation of Arm's Length Price in relation to transactions with TVIDIA, GM Accounts knows that there are various methods to calculate the arm length price but has got no idea about which is the most appropriate method and how he should select it. KAL also has stock market investment portfolio. Management decided to diversify its investment portfolio to leverage stock investments for better financial returns and liquidity. After evaluating several stockbrokers based on service quality, brokerage fees, technological support, and advisory services, KAL Ltd. chose ABC Securities Ltd., a reputed brokerage firm (based in Bangalore) known for its AI driven research-based approach and customer service. As expected, portfolio generated good returns and KAL paid brokerage of 10 Lakh + GST @ 18% i.e.1,80,000. Broker raised invoice charging CGST and SGST treating Bangalore as place of supply. KAL made the payment and took ITC for 1,80,000. Audit committee of KAL has been facing pressure from investors and stakeholders to enhance its sustainability performance. The company had previously followed Business Responsibility Reporting (BRR) but found it insufficient in addressing the increasing demand for detailed ESG disclosures. Last Year's BRSR failed to disclose the efforts of the company towards community investments, partnerships, local employment, and social impact initiatives. The following disclosures were made: D1 Company collaborates with international artisans to provide training and access to international markets. D2 Supports government efforts in vaccination drives and disease prevention programs. D3 Participation in renewable energy policy discussions. D4 Adoption of electric vehicles for logistics and employee transport. KAL invested in a CPL franchise by acquiring a controlling stake (70%) in GSB Warriors, an existing team in the Cricket Premier League (CPL). The deal is valued at 2,500 crores, which includes: 1,500 crores for the franchise rights (intangible asset) 500 crores for existing player contracts 500 crores as working capital and other assets Key Investment Considerations 1. Strategic Rationale for Investment High revenue potential from broadcasting rights, sponsorships, ticket sales, and merchandiseCPL's rapid commercial growth and global audienceBrand-building and cross-promotion with KAL's other businesses 2. Investment Structure KAL acquires 60% equity stake in GSB WarriorsThe remaining 40% stays with the previous ownersThe deal is structured through a mix of cash and equity financing.GSB warriors has also leased a stadium and training facility