SecUR Credentials Limited, India's first listed background screening company on NSE Emerge, reported a significant deterioration in its standalone financial performance for the quarter ended December 31, 2024. The company posted a net loss of ₹215.97 Lacs for Q3 FY25, compared to a net profit of ₹41.44 Lacs in Q3 FY24, reflecting a sharp year-on-year reversal. The unaudited standalone financial results were reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on May 04, 2026.

Quarterly Financial Performance

The company's revenue from operations turned negative at ₹(87.49) Lacs in Q3 FY25, a stark contrast to ₹704.26 Lacs recorded in Q3 FY24 and ₹79.07 Lacs in Q2 FY25. Other income for the quarter stood at ₹1.50 Lacs, down from ₹83.89 Lacs in Q3 FY24, resulting in total income of ₹(85.99) Lacs against ₹788.15 Lacs in the year-ago period. The following table summarises the key financial metrics across periods:

Expense Breakdown for Q3 FY25

Total expenses for Q3 FY25 stood at ₹129.98 Lacs. The key components of expenditure during the quarter are presented below:

Nine-Month and Full-Year Comparison

For the nine months ended December 31, 2024, the company reported a net loss of ₹731.57 Lacs, compared to a net profit of ₹467.27 Lacs for the nine months ended December 31, 2023. Revenue from operations for the nine-month period stood at ₹(3.90) Lacs against ₹2,405.55 Lacs in the prior year period. For the full year ended March 2024, the company had reported a net loss of ₹245.50 Lacs on revenue from operations of ₹2,812.89 Lacs. The paid-up equity share capital remained unchanged at ₹4,106.28 Lacs across all reported periods, with a face value of ₹10 per share.

Auditor Qualifications and Compliance Concerns

The statutory auditors, JPMD & Associates (Registration No. 133085W), conducted a limited review of the unaudited standalone financial results pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. While the auditors did not express a modified opinion, they highlighted several significant matters in the notes forming part of the limited review report:

• Director Loan: The company granted a loan of ₹127.34 Lakhs to a Director, which the auditors noted is in contravention of Section 185 of the Companies Act, 2013.
• Inventory Discrepancy: Inventory disclosed in the financial statements was not found to exist during physical verification, indicating a possible overstatement in prior periods; the impact has not been quantified.
• Gratuity Non-Compliance: Provision for gratuity has not been recognised, and no actuarial valuation has been obtained, which is not in compliance with Ind AS 19 – Employee Benefits.
• GST Records Unavailable: GST returns, reconciliation statements, and supporting records were not made available for verification, preventing confirmation of GST-related balances and statutory compliance.
• ECL Provision Not Made: Expected Credit Loss provision as required under Ind AS 109 has not been made.
• PF and ESIC Records: Provident Fund and ESIC challans, returns, and reconciliation statements were not produced for verification.
• Deferred Tax Assets: In the absence of reasonable certainty regarding future taxable profits, the company has not recognised Deferred Tax Assets on carried forward losses, in accordance with Ind AS 12.
• Statutory Dues: Statutory dues outstanding as per opening balances remain unpaid as on December 31, 2024.
• Website Non-Compliance: The company's website was not active as on the date of the limited review, preventing verification of statutory disclosure requirements.
• Trade Receivables and Payables: These are subject to confirmation and have been considered as certified by management, with no independent balance confirmations received.
• Current Maturities of Borrowings: Current maturities of long-term borrowings have not been disclosed due to non-availability of repayment schedules.

Summary

SecUR Credentials reported a net loss of ₹215.97 Lacs in Q3 FY25, reversing a profit of ₹41.44 Lacs in Q3 FY24, with revenue from operations turning negative at ₹(87.49) Lacs. The nine-month net loss widened to ₹731.57 Lacs against a profit of ₹467.27 Lacs in the comparable prior year period. The auditors flagged multiple compliance and disclosure concerns, including a director loan of ₹127.34 Lakhs in contravention of the Companies Act, inventory discrepancies, and non-recognition of gratuity provisions, among others.

SecUR Credentials Limited, India's first background screening company listed on NSE Emerge, has reported its unaudited standalone financial results for the quarter and half year ended September 30, 2024, disclosing a sharp decline in revenue and a widening net loss compared to the corresponding period of the previous year. The results were reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on May 04, 2026, and have been subjected to a limited review by statutory auditors JPMD & Associates, Chartered Accountants.

Quarterly Financial Performance

The company's revenue from operations declined steeply to ₹79.07 Lakhs in the quarter ended September 30, 2024 (Q2FY25), compared to ₹700.70 Lakhs in the quarter ended September 30, 2023 (Q2FY24). Other income stood at ₹18.59 Lakhs in Q2FY25 versus ₹40.67 Lakhs in Q2FY24, bringing total income to ₹97.66 Lakhs against ₹741.37 Lakhs in the year-ago quarter. Total expenses for Q2FY25 were ₹230.65 Lakhs, resulting in a net loss of ₹132.99 Lakhs, compared to a net profit of ₹324.76 Lakhs in Q2FY24. The following table presents the key financial metrics across comparable periods:

Half Year and Full Year Comparison

For the half year ended September 30, 2024, revenue from operations stood at ₹83.59 Lakhs compared to ₹1,701.29 Lakhs in the half year ended September 30, 2023. Total income for H1FY25 was ₹102.76 Lakhs against ₹1,755.39 Lakhs in H1FY24. The net loss for H1FY25 widened to ₹515.60 Lakhs, compared to a net profit of ₹425.84 Lakhs in H1FY24. For the full year ended March 31, 2024, the company had reported total income of ₹3,386.55 Lakhs and a net loss of ₹245.50 Lakhs.

Balance Sheet Position

As on September 30, 2024, the company's total assets stood at ₹6,821.62 Lakhs, down from ₹7,898.66 Lakhs as on March 31, 2024. Total equity declined to ₹3,708.92 Lakhs from ₹4,265.30 Lakhs, reflecting the accumulated losses during the period. Cash and cash equivalents fell sharply to ₹1.79 Lakhs from ₹80.49 Lakhs. The paid-up equity share capital remained unchanged at ₹4,106.28 Lakhs (face value of ₹10 each) across all reported periods.

Auditor Observations and Compliance Concerns

The limited review report issued by JPMD & Associates highlighted several significant observations and qualifications. The auditors noted multiple instances of non-compliance and unverified balances, which are summarised below:

• Director Loan: The company has granted a loan of ₹152.12 Lakhs to a Director, which is stated to be in contravention of Section 185 of the Companies Act, 2013.
• Gratuity Provision: Provision for gratuity has not been recognised in the financial statements, and no actuarial valuation has been obtained, which is not in compliance with Ind AS 19 – Employee Benefits.
• Expected Credit Loss (ECL): ECL provision has not been made as required under Ind AS 109.
• Deferred Tax Assets: In the absence of reasonable certainty regarding future taxable profits, the company has not recognised Deferred Tax Assets on carried forward losses, in accordance with Ind AS 12.
• Inventory: Inventory disclosed was not found to exist during physical verification, indicating a possible overstatement in prior periods; the impact has not been quantified.
• GST Records: GST returns, reconciliation statements, and supporting records were not made available for verification.
• PF and ESIC Records: Provident Fund and ESIC challans, returns, and reconciliation statements were not produced for verification.
• Company Website: The company's website was not active as on the date of the limited review, preventing verification of statutory disclosure compliance.
• Statutory Dues: Statutory dues outstanding as per opening balances remain unpaid as on September 30, 2024.
• Current Maturities of Borrowings: Current maturities of long-term borrowings have not been disclosed due to non-availability of repayment schedules.
• Trade Receivables and Payables: These are subject to confirmation and have been considered as certified by management, with no independent balance confirmations received.

The auditors stated that their opinion is not modified in respect of the matters highlighted under the Emphasis of Matters section, having relied upon assumptions and explanations provided by management.