SecUR Credentials Limited has released its unaudited standalone financial results for the quarter ended June 30, 2024, reporting a sharp decline in operational performance. The company, listed on NSE Emerge, recorded revenue from operations of ₹4.52 Lakh for Q1FY25, significantly lower than ₹1,000.59 Lakh reported in the corresponding quarter of the previous year. Total income stood at ₹5.10 Lakh, while total expenses amounted to ₹387.71 Lakh, resulting in a net loss of ₹382.61 Lakh for the quarter.

The financial results, approved by the Board of Directors on April 17, 2026, reveal challenging operational conditions. Employee benefits expense for the quarter was ₹84.07 Lakh, finance costs at ₹53.59 Lakh, and depreciation and amortization expenses at ₹69.93 Lakh. Other expenses accounted for ₹180.12 Lakh during the period. The company's paid-up equity share capital remained unchanged at ₹4,106.28 Lakh with a face value of ₹10 per share.

Financial Performance Comparison

Compliance and Audit Observations

JPMD & Associates, Chartered Accountants, conducted the limited review of the unaudited financial results and raised several significant concerns. The auditors noted that inventory disclosed in the financial statements was not found to exist during physical verification, indicating a possible overstatement of inventory in prior periods. Additionally, the company's website was not active as of the review date, preventing verification of statutory compliance regarding disclosure requirements.

The auditors highlighted that Goods and Services Tax (GST) returns, reconciliation statements, and supporting records were not made available for review. Similarly, Provident Fund and Employees' State Insurance challans, returns, and reconciliation statements were not produced for verification. Statutory dues outstanding as per opening balances remain unpaid as of June 30, 2024.

Key Non-Compliance Issues

The limited review report identified multiple areas of non-compliance with accounting standards and regulatory requirements:

• Provision for gratuity has not been recognized in the financial statements, which is not in compliance with Ind AS 19 – Employee Benefits
• The company has not obtained an actuarial valuation for gratuity liability as required under Ind AS 19
• A loan amounting to ₹116.11 Lakhs has been granted to a director, contravening Section 185 of the Companies Act, 2013
• Current maturities of long-term borrowings have not been disclosed due to non-availability of repayment schedules
• Expected Credit Loss (ECL) provision has not been made as required per Ind AS 109
• Deferred Tax Assets on carried forward losses have not been recognized due to uncertainty regarding future taxable profits

Trade receivables and trade payables have been considered as certified by management without independent balance confirmations. The company has also not recognized Deferred Tax Assets on carried forward losses in accordance with Ind AS 12 requirements, citing uncertainty regarding the availability of future taxable profits.