BSEKBS India LtdHighNegative
Announced Tue, 11 Nov · 19:18 IST

Statement of Impact of Auditors Qualification.

Regulatory & Legal View source PDF

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▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.

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Awaiting price reaction for this filing.

AI summary

KBS India Ltd has filed the regulatory statement on auditor qualifications for its September 2025 quarter results. The auditor issued a qualified opinion on two repetitive issues: (1) An unrecovered loan of about Rs. 16.65 crore plus a current account balance of Rs. 8.02 lakh due from KBS Capital Management Singapore Pte Ltd, a former subsidiary that has since been shut down — no provision has been made, which the auditor says overstates profit and reserves; and (2) non-provision of employee gratuity liability as required by IndAS 19. Management says it is awaiting RBI confirmation before writing off the Singapore loan and is working to resolve the gratuity issue. For the quarter, the company reported total income of Rs. 115.77 lakhs, a net profit of Rs. 6.06 lakhs, and a net worth of Rs. 3,432.55 lakhs.

Likely market impact

Investors should note that profits and net worth may be overstated because roughly Rs. 16.65 crore owed by a defunct overseas subsidiary has not been provided for, and the issue is recurring. Any negative RBI or recovery outcome could materially hit book value, while resolution of either qualification could be a positive trigger.