SecUR Credentials Limited reported a standalone net loss of ₹804.13 lakh for FY25, significantly widening from a loss of ₹245.50 lakh in FY24, as revenue from operations collapsed to ₹55.25 lakh from ₹2,812.89 lakh in the prior year. The deterioration in financial performance is compounded by a qualified audit opinion from statutory auditors JPMD & Associates, who cited critical deficiencies in documentation, unverified receivables, and regulatory scrutiny regarding past transactions.

The Board of Directors approved the audited financial results for Q4FY25 and FY25 on August 05, 2026, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Board also approved the notice for the 24th Annual General Meeting (AGM) to be held via Video Conferencing/Other Audio Visual Means (VC/OAVM) and appointed Ms. Prachi Bansal as the scrutinizer for remote e-voting. Additionally, the Board approved shifting the company’s registered office within Maharashtra to Raikar Chambers, Govandi East, effective August 05, 2026.

Financial Performance

Revenue from operations plummeted to ₹59.14 lakh in Q4FY25 compared to ₹407.34 lakh in Q4FY24, while other income dropped sharply to ₹5.35 lakh from ₹435.67 lakh. Total income for the quarter stood at ₹64.49 lakh against total expenses of ₹137.05 lakh, resulting in a pre-tax loss of ₹72.56 lakh. For the full year, total expenses reached ₹885.40 lakh, driven primarily by employee benefits of ₹177.14 lakh, finance costs of ₹155.97 lakh, and other expenses of ₹317.86 lakh.

Cash and cash equivalents at the end of FY25 stood at ₹206.74 lakh, down from ₹273.36 lakh in FY24. Total assets decreased to ₹6,590.77 lakh from ₹7,663.14 lakh, while total equity declined to ₹3,461.18 lakh from ₹4,265.30 lakh.

Basis for Qualified Opinion

JPMD & Associates, the statutory auditors, issued a qualified opinion due to multiple material uncertainties. Key issues include:

• Director’s Ledger: A debit balance of ₹116.12 lakh in the director’s ledger account lacks supporting invoices or vouchers, raising questions about recoverability and compliance with Ind AS 37.
• Unbilled Revenue: No invoices have been raised for unbilled revenue balances, preventing verification under Ind AS 115.
• SEBI Interim Order: The company received an interim order from SEBI regarding alleged fictitious transactions involving Varanium Cloud Ltd. and its director Harshvardhan Samble. Sales reversed via credit notes amounting to an undisclosed value were attributed to project cancellations, but no correspondence beyond a representation letter was provided.
• Missing Documentation: The auditors could not verify statutory dues, major expenditures, or third-party confirmations for trade payables and receivables. Additionally, no Expected Credit Loss provision was made on advances, violating Ind AS 109.
• Long-standing Advances: An advance payment of ₹559.70 lakh for acquiring immovable property remains outstanding since previous years without any acquisition having taken place.

Management stated that the financial impact of these qualifications cannot be reasonably quantified at this stage due to pending reconciliations and missing documents. The auditors confirmed that sufficient appropriate evidence was unavailable to determine the consequential impact on the financial statements.

SecUR Credentials Limited has submitted a revised limited review report for its unaudited standalone financial results for the quarter ended December 31, 2024 (Q3FY25), correcting an inadvertent error in the previously filed document. While the underlying financial figures remain unchanged, the revised disclosure from statutory auditors JPMD & Associates reveals significant governance and compliance deficiencies, including unverified inventory balances, outstanding statutory dues, and a prohibited loan extended to a company director.

The company reported a net loss of ₹215.97 Lakhs for Q3FY25, widening from a net profit of ₹41.44 Lakhs in the same quarter last year. Revenue from operations turned negative at ₹(87.49) Lakhs, compared to ₹704.26 Lakhs in Q3FY24. For the nine months ended December 31, 2024, the company posted a cumulative net loss of ₹731.57 Lakhs against a net profit of ₹467.27 Lakhs in the corresponding period of FY24. The Board of Directors approved these results on May 04, 2026.

Key Financial Metrics

Critical Compliance Gaps

JPMD & Associates, the statutory auditors, raised multiple emphasis-of-matter points indicating severe internal control weaknesses. The auditors noted that inventory disclosed in the financial statements was not found during physical verification, suggesting a possible overstatement of prior period assets. Furthermore, GST returns, reconciliation statements, and supporting records were not made available, preventing verification of GST-related balances and statutory compliance.

Significant regulatory violations were also identified. The company granted a loan of ₹127.34 Lakhs to a director, which contravenes Section 185 of the Companies Act, 2013. Additionally, statutory dues outstanding as per opening balances remained unpaid as of December 31, 2024. The auditors also highlighted that Provident Fund (PF) and Employees' State Insurance (ESIC) challans and returns were not produced for verification, leaving the accuracy of related statutory dues unconfirmed.

Accounting Non-Compliances

The review report detailed several departures from Indian Accounting Standards (Ind AS). The company failed to recognize gratuity provisions or obtain actuarial valuations as required under Ind AS 19 – Employee Benefits. Expected Credit Loss (ECL) provisions mandated by Ind AS 109 were also not made. Moreover, current maturities of long-term borrowings were not disclosed due to the non-availability of repayment schedules. Deferred Tax Assets were not recognized due to uncertainty regarding future taxable profits, in line with Ind AS 12. Trade receivables and payables were accepted based on management certification without independent balance confirmations.

What the Numbers Show

The divergence between the negative revenue from operations and the substantial expense base highlights operational distress. With revenue collapsing to negative territory while employee benefits and finance costs remained elevated at ₹32.24 Lakhs and ₹52.19 Lakhs respectively in Q3FY25, the company’s core business model appears unsustainable without immediate intervention. The inability of auditors to verify basic statutory dues and inventory existence raises serious questions about the reliability of the reported asset base and liquidity position.