1. SIGNIFICANT ACCOUNTING POLICIES:

i. ACCOUNTING CONCEPTS:

The Company follows the Mercantile System of Accounting and recognises Income and Expenditure on Accrual Basis. The Accounts are brpared on historical cost basis as a going concern. Accounting policies not referred to otherwise are consistent with Generally Accepted Accounting Principles.

ii. FIXED ASSETS:

Fixed Assets are stated at cost less debrciation.

iii. DEbrCIATION:

Debrciation on Fixed Assets is charged in the account on written down value method at the rates specified in the new Companies Act, 2013.

iv. INVESTMENTS:

Long Term Investments are stated at cost. Provision for diminution in the value of long term investments is not made as there is no decline in the value of the investments.

v. INVETORIES:

Shares that are deposited with Bombay Stock Exchange and Share stock (Own Trading) are valued at Cost.

vi. BROKERAGE EARNED:

Brokerage earned is accounted on the basis of transaction done during the accounting year irrespective of whether the same are settled during the year or not. Brokerage earned is shown as net i.e. after deduction of Brokerage paid.

vii. RETIREMENT BENEFITS:

No provision for future liabilities made in respect of gratuity, leave encashment, etc.

2. Balances of Sundry Debtors, Sundry Creditors and payables, deposits, loans & advances given or taken from the parties, are subject to confirmation.

3. As Company being share and stock broking and Investment Company additional information as required under part II of Schedule - VI of Companies Act, 2013, is irrelevant and not applicable.

4. Number of Employees of the Company in respect of or entitled to receive Emolument in the aggregate of Rs. 12, 00,000/- or more per annum or Rs. 1,00,000/- or more per month employed for part of the year: ONE

5. As there is no remuneration paid in excess of the minimum limit as specified under section 349 of the Companies Act, 1956 to the Managerial Persons, calculation of net profit under the said section 349 is not required.

7. CONTINGENT LIABILITY NOT ASCERTAINED:

In the opinion of management there are no contingent liabilities for the year.

8. In the opinion of the management, Current Assets, Deposits, Loans and advances have value equal to the amounts shown in the Balance Sheet. The provision for debrciation and all the liabilities is not in excess of the amount reasonably necessary.

9. The foreign currency rate fluctuation balance as on 31/03/2015 of Rs. 53,56,593/- is credited to the Profit & Loss Account is in accordance with AS 11(Revised) The Effects of Changes in Foreign Exchange Rates.

10. During the year The Company has debited to Profit and Loss A/c. as Bad debts of Rs. 1,07,00,000/-.

11. During the year, the company has made payments of ESIC for the period April - June 2014.

12. Service tax liability for the year is still partly unpaid.

13. Rate of Interest on ICD given to Supama Financial Services, RSM Exim and Oasis Heights Developers LLP is charged @ 12% P.A.

14. Segment Reporting

The Company is engaged in two business segments, one is to provide brokerage services to its clients in the capital markets within India from which revenue is Rs. 89,76,550/- and other is trading of shares from which loss is Rs. (1,09,774/-)

15. Principal of Consolidation:

a) The consolidated financial statements relate to KBS India Limited, the holding company and its foreign subsidiary. The consolidation of accounts of the company with its subsidiary has been brpared in accordance with the Accounting Standard (AS) 21 'Consolidated financial Statements' taking into considerations the stipulations mentioned in Accounting Standard (AS) 11 'The Effects of Changes in Foreign Exchange Rates'. The financial statements of the parent and its Foreign Subsidiary are combined on a line by line basis and intra group balances, intra group transactions and unrealized profits or losses are fully eliminated.

b) Foreign Currency Translation Gain of Rs. 53,56,593/- is been added to the Profit & Loss Account.

c) As it is a 100% Foreign Subsidiary the Minority Interest is NIL

16. Previous year's figures have been regrouped wherever necessary to confirm the classification adopted in the current year.

FOR GOPAL RAO & ASSOCIATES

CHARTERED ACCOUNTANTS

Firm Registration No. 127055W

N. G. Rao

Proprietor

Membership No. 33665

For and on behalf of the Board of Directors

Tushar Shah Chairman & Managing Director

Ketan Shah Director

Chandrakant Lodaya Chief Financial Officer

Place : Mumbai,

Date : 22nd May, 2015