KBS Limited Reports Audit Qualifications and Q2 FY2026 Results

KBS India , a Mumbai-based company, has submitted statements detailing the impact of audit qualifications for the quarter and half-year ended September 30, 2025. The company's financial results reveal a mixed picture, with notable concerns raised by auditors regarding certain financial practices.

Audit Qualifications

The auditors have identified two key qualifications in their report:

Outstanding Amounts from Subsidiary: The company has outstanding amounts of Rs. 16.65 crore in long-term loans and Rs. 8.02 lakh in current account balances receivable from KBS Capital Management Singapore Pte Ltd, a subsidiary that has been closed down. No provision has been made for these amounts, resulting in an overstatement of profit and reserves.
Gratuity Liability: KBS Limited has not provided for gratuity liability as required by IndAS 19. The impact of this non-provision remains unquantified due to the absence of an actuarial valuation.

Financial Performance

Despite these qualifications, KBS Limited reported the following financial results for Q2 FY2026:

Metric	Amount
Turnover	Rs. 115.77 lakh
Net Profit After Tax	Rs. 6.06 lakh
Earnings Per Share	Rs. 0.01

Management Response

The management of KBS Limited has stated that they are awaiting confirmation from the Reserve Bank of India (RBI) regarding the amounts related to the Singapore subsidiary. They have also acknowledged the issue concerning gratuity liability and indicated that it is being addressed.

Regulatory Compliance

In compliance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, KBS Limited has published its unaudited financial results in newspapers. The results were published in Business Standard and Pratahkal on November 10, 2025.

Investor Considerations

While the company has reported a profit, investors may need to consider the potential impact of the audit qualifications on the company's financial position. The unresolved issues regarding the closed subsidiary and the non-provision of gratuity liability may affect the accuracy of the reported financial figures.

KBS Limited's board of directors, led by Managing Director Tushar Suresh Shah, approved these results in a meeting held on November 7, 2025.

As the company works to address these audit qualifications, stakeholders will likely keep a close watch on future communications from KBS Limited regarding the resolution of these financial matters.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+2.65%	0.0%	-3.96%	-67.45%	-79.54%	-40.31%

KBS India Limited, a company listed on the Bombay Stock Exchange, has reported a turnaround in its financial performance for the quarter ended September 30, 2025. The company's board approved the un-audited financial results in a meeting held on November 7, 2025.

Financial Highlights

Metric	Q2 FY26	Q2 FY25	Change
Net Profit/(Loss)	₹5.12	(₹6.30)	Improved
Revenue from Operations	₹84.27	₹80.52	+4.66%
Total Income	₹96.23	-	-
Total Expenses	₹89.39	-	-
Basic EPS	₹0.01	(₹0.01)	Improved

All financial figures in lakhs, except EPS

KBS India Limited has shown a notable improvement in its financial performance, turning a net loss from the previous year into a profit. The company reported a net profit of ₹5.12 lakh for the quarter ended September 30, 2025, compared to a net loss of ₹6.30 lakh in the same period last year.

Revenue from operations saw a modest increase of 4.66%, rising to ₹84.27 lakh from ₹80.52 lakh year-over-year. The total income for the quarter stood at ₹96.23 lakh, while total expenses were reported at ₹89.39 lakh.

The company's earnings per share (EPS) also improved, moving from a loss of ₹0.01 per share in the previous year to a profit of ₹0.01 per share in the current quarter.

Auditor Concerns

Despite the improved financial performance, the auditors have highlighted two key concerns in their report:

Unprovided gratuity liability: The auditors noted that the company has not made provisions for gratuity liabilities.
Outstanding loans and balances: The auditors pointed out significant outstanding amounts related to KBS Capital Management Singapore:
- Loans amounting to ₹16.65 crore
- Current account balance of ₹8.02 lakh

It's important to note that KBS Capital Management Singapore has been struck off, and no provisions have been made for these outstanding amounts.

Corporate Disclosure

As per the LODR (Listing Obligations and Disclosure Requirements) data, the company's board meeting to approve these results was held on November 7, 2025. The meeting commenced at 2:00 PM and concluded at 3:15 PM.

Investors and stakeholders should consider both the improved financial performance and the auditors' concerns when evaluating the company's overall financial health and future prospects.