Disclosure Context

KBS India Limited (Scrip Code: 530357) submitted a statement on the impact of audit qualifications to the BSE Limited on 06th November 2026. This submission is in reference to their earlier announcement dated 06th November 2026 regarding the "Outcome of Board Meeting and Submission of Un-Audited Standalone Financial Results for the Quarter & Half-Year ended on 30th September 2026."

Financial Impact Statement

The company provided a table comparing audited figures (before adjusting for qualifications) with adjusted figures (after adjusting for qualifications) for the quarter and half-year ended 30th September 2026. All values are reported in Indian Rupees lakhs.

| Particulars | Audited Figures (Before Adjustments) | Adjusted Figures (After Adjustments) |

| Turnover/Total Income | 341.71 | 341.71 |

| Total Expenditure | 329.48 | Not Provided |

| Net Profit/(Loss) after Tax | Not Provided | 329.48 |

| Earnings per Share (in Rs.) | 8.76 / 0.01 | 8.76 / 0.01 |

| Total Assets | 3891.24 | 3891.24 |

| Total Liabilities | 126.28 | 126.28 |

| Net Worth | 3764.96 | 3764.96 |

Notably, no adjustments were made to any financial line items despite the audit qualifications.

Audit Qualification Details

Qualification 1: Long-term Loan and Current Account Receivable

  • Details: A long-term loan amounting to ₹16,65,40,533 (₹16.65 crore) and a current account outstanding balance of ₹8,02,444 are receivable from KBS Capital Management Singapore Pte Ltd (erstwhile subsidiary of the company). The company has been informed that this entity has been closed down. No provision has been made for these amounts in the financial statements for the period ended 30th September 2026.
  • Impact: This has resulted in an overstatement of profit and accumulated reserves & surplus.
  • Type: Qualified Opinion
  • Frequency: Repetitive
  • Management View: "The observation made by the auditor for said note is discussed and management will look forward it."
  • Auditor Comments: Confirmed the qualification details and impact.

Qualification 2: Gratuity Liability

  • Details: Gratuity liability of employees is not provided for as required by Ind AS 19 on "Employee Benefits". The impact is not quantified due to the absence of actuarial valuation/management estimate.
  • Type: Qualified Opinion
  • Frequency: Repetitive
  • Management View: "The observation made by the auditor for Employees Gratuity liability is correct and Company board of directors have considered this issue and are in process of resolving the same as soon as possible."
  • Auditor Comments: Confirmed the qualification details.