JK Tyre & Industries Limited
Preview the depth — unlock the full forensic study.
You're reading the free Overview. The full Landscape study, the Lenses, governance and quality scans unlock with Pro — across 5,000 Indian companies.
Briefing
JK Tyre & Industries Limited — the brief
Forensic posture: Material flags. JK Tyre's auditor gave it a clean bill of health with no flags, but the company has a complex web of related-party dealings (₹2,300 Cr across 49 parties) centred on a soon-to-merge subsidiary, plus ₹440 Cr in contingent tax and litigation liabilities (8.8% of net worth); the underlying financials are solid but the inter-group plumbing and pending merger need watching.
Auditor’s report (CARO 2020)
Auditor’s assessment Clean. Auditor: S S Kothari Mehta & Co. LLP. Opinion: Unqualified. Fiscal year FY24-25.
Related-party transactions
Assessment Notable. Disclosed volume of ₹2,300 Cr across 49 related parties. Fiscal year FY24-25.
- Large advances to subsidiary CIL rising sharply: Advances to Cavendish Industries Ltd. increased from ₹180.63 Cr to ₹287.58 Cr (59% jump YoY) with an additional ₹10.82 Cr to newly-acquired subsidiary TREEL-S; total subsidiary advances at ₹298.40 Cr representing a material intra-group expo
- ~99% of subsidiary purchases concentrated in one entity (CIL): Purchases of goods from subsidiaries totalled ₹1,003.27 Cr, of which ₹1,001.67 Cr (>99%) were from Cavendish Industries Ltd. alone, creating significant supply-chain concentration risk within the group; notably a merger scheme with CIL (app
- Material trade receivables outstanding from associates CHT/VPL/WTI: Year-end trade receivables from associates (CHT ₹231.80 Cr, VPL ₹211.64 Cr, WTI ₹99.31 Cr) totalling ₹310.95 Cr represent a large credit exposure to overseas related parties, broadly stable versus prior year ₹329.87 Cr.
- Pending merger with key subsidiary CIL warrants monitoring: The Board approved amalgamation of Cavendish Industries Ltd. (the single largest RPT counterparty, accounting for ~₹1,001 Cr in purchases and ₹288 Cr in advances) with appointed date 1 April 2025, pending NCLT/regulatory approvals; until co
Contingent liabilities
Assessment Concerning. Total disclosed: ₹440 Cr (8.8% of net worth). Fiscal year FY24-25.
- Excise and Customs duty demands under appeal
- Other claims not accepted and not provided for
- CCI penalty for alleged Competition Act contravention; matter remanded by NCLAT; CCI appeal pending at Supreme Court
“Advances to CIL-287.58, TREEL-S – 10.82, HASETRI – 12.63 — 298.40”
What retail misses·The merger of Cavendish Industries Ltd.—the company's dominant raw-material supplier and largest inter-group counterparty—was approved by the Board for 1 April 2025 and is pending NCLT clearance; until now, this supply dependency and the ₹288 Cr intra-group lending show up only in the contingent liabilities and related-party tables, not in mainstream news flow.
Strengths noted in disclosures: The auditor's report is entirely clean — zero high, material, or minor flags — indicating disclosure completeness and no going-concern worries. · Earnings quality scores at 80/100 ('Excellent') with strong cash-to-profit alignment, low manipulation risk, and Piotroski fundamentals at 7/8, showing the reported ₹385 Cr net profit is backed by real cash generation. · Contingent liabilities at 8.8% of net worth are manageable if appeals go the company's way; most items are under appellate review rather than imminent court judgments.
Forensic signal
From the company's own filingsStrong: Valuation · Weak: 52-Week · Yield