SecurCredentials Reports ₹712.78L Loss for FY25 Amid Audit Concerns
SecurCredentials Limited reported a net loss of ₹712.78 lakhs for FY25, reversing from a profit of ₹777.86 lakhs in FY24. Revenue from operations decreased to ₹2,812.80 lakhs from ₹5,001.33 lakhs. The company faces regulatory compliance issues, with its securities suspended due to non-payment of Annual Listing Fees and failure to file required compliances for about two years. Auditors highlighted concerns including director receivables, unbilled revenue issues, and property advance discrepancies. SEBI is investigating alleged fictitious transactions involving Varanium Cloud Ltd. Management acknowledged non-compliances and stated efforts to regularize filings and strengthen compliance processes.
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SecurCredentials Limited has reported a net loss of ₹712.78 lakhs for the financial year ended March 31, 2025, a significant reversal from the net profit of ₹777.86 lakhs recorded in the previous fiscal year. The background screening company, listed on NSE Emerge, announced these results following a board meeting.
Financial Performance Overview
The company's operational performance declined during FY25. Revenue from operations decreased to ₹2,812.80 lakhs from ₹5,001.33 lakhs in the previous year. Total revenue, including other income, fell to ₹3,386.55 lakhs from ₹5,135.44 lakhs in FY24.
| Financial Metric | FY25 (₹ Lakhs) | FY24 (₹ Lakhs) |
|---|---|---|
| Revenue from Operations | 2,812.80 | 5,001.33 |
| Total Revenue | 3,386.55 | 5,135.44 |
| Total Expenses | 4,069.99 | 4,079.88 |
| Profit/(Loss) Before Tax | (683.44) | 1,055.56 |
| Net Profit/(Loss) | (712.78) | 777.86 |
Auditor Qualifications and Concerns
The statutory auditors, M/s. S.D. Mehta & Co., Chartered Accountants, issued a qualified opinion on the financial results, highlighting 12 significant areas of concern. Key issues include:
Director Receivables
A debit balance of ₹205.09 lakhs exists in the director's ledger account, representing amounts receivable from the director. The management indicated these payments were for expenses incurred on behalf of the company, but supporting documentation was not provided.
Unbilled Revenue Issues
No invoices have been raised by the company for the balance outstanding under unbilled revenue in the Statement of Profit and Loss, and the balance remains unchanged till the date of the audit report.
Property Advance
The company had made an advance payment of ₹599.70 lakhs for acquiring immovable property, standing as opening balance for many years, but no acquisition has been made against this advance.
Regulatory Compliance Issues
SecurCredentials' securities are currently suspended due to penal reasons, including non-payment of Annual Listing Fees (ALF). The company has not filed its quarterly, half-yearly, and annual compliances as required under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, for approximately two years.
| Compliance Issue | Status |
|---|---|
| Annual Listing Fees | Non-payment |
| Quarterly Filings | Pending for ~2 years |
| Half-yearly Filings | Pending for ~2 years |
| Annual Compliances | Pending for ~2 years |
| Securities Status | Under suspension |
SEBI Investigation and Related Matters
The company has received an interim order from SEBI regarding certain transactions alleged as fictitious, involving Varanium Cloud Ltd and its director Harshvardhan Samble. The erstwhile director Shri Rahul Belwalkar has challenged this order in the Bombay High Court. Credit notes worth ₹235.76 lakhs were issued to Varanium Cloud Ltd, reversing sales made in the earlier financial year due to project cancellation.
Management Response
The management acknowledged the non-compliances and stated they are making efforts to regularize all pending filings and ensure compliance with applicable SEBI (LODR) Regulations. The company assured that necessary systems and processes are being strengthened to ensure timely compliance going forward.
Promoter group shareholdings have been down to zero since March 2022, and KMP shareholdings are frozen as per SEBI orders. The management is in the process of strengthening internal controls to ensure strict compliance in the future.
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