Secur Credentials Limited Announces Key Board Decisions Amid Qualified Audit Opinion

Secur Credentials Limited Announces Key Board Decisions Amid Qualified Audit Opinion​

Secur Credentials Limited, a publicly traded entity, has reported the outcomes of its recent Board meeting, which included approving annual results and making significant operational changes. However, the company's standalone financial results for the quarter and financial year ended March 31, 2025, received a qualified opinion from JPMD & Associates.

The board approved the audited financial results for the Fourth Quarter and Financial Year ending March 31, 2025. The Board also reviewed and endorsed the Director's Report for the Financial Year 2024-25 and considered the Notice for the company’s 24th Annual General Meeting (AGM), which is scheduled to be held through Video Conferencing or other Audio Visual Means (VC/OAVM).

One of the key operational decisions approved by the Board was the shifting of the registered office. The company will move its registered office from the current address in Mumbai, Goregaon East, effective August 5, 2026, to a new location at Raikar chambers officer no. 605, 6th Floor Govandi East, Suburban, Deonar Kurla Mumbai 400088.

In addition, the Board approved the appointment of Ms. Prachi Bansal (CoP: 23670), a Practicing Company Secretary, to serve as Scrutinizer for conducting the Remote e-voting process during the AGM.

Financial Performance and Key Statements​

The company’s standalone financial results showed varied figures across the reported periods. Total Income for the quarter ended March 31, 2025, stood at Rs. 64.49 Lakhs, while total income for the full financial year ending March 2024 was recorded at Rs. 3,386.55 Lakhs. The company reported a net loss of (Rs. 72.56) Lakhs for the quarter and (Rs. 245.50) Lakhs for the full financial year in continuing operations.

A summary of key financial data and metrics for the periods ending March 31, 2025, is provided below:

Basis for Qualified Opinion​

JPMD & Associates issued a qualified opinion on the standalone financial results. The auditors noted several areas that required attention due to insufficient documentation or pending reconciliations, which resulted in the qualification.

The qualifications included:

• Director’s Ledger Account: The financial statements show a debit balance of Rs. 116.12 Lakhs in the director's ledger account (an amount receivable from the director). Management stated this pertains to expenses incurred on behalf of the company, but supporting documentation such as invoices or vouchers was absent, leading to uncertainty regarding the existence and recoverability of the balance.
• Unbilled Revenue: The balance recorded under 'Unbilled Revenue' could not be verified as no invoices had been raised by the company up to the report issuance date.
• Advances and Loans: No interest was collected on loans advanced, and proper documentation for reconciliation of statutory dues could not be made due to lack of required details.
• Asset Acquisition: An opening balance advance payment of Rs. 559.70 lakhs existed for the purpose of acquiring immovable property; however, no acquisition has been recorded against this advance.
• Credit Loss Provision: Expected Credit Loss Provision was not provided on advances given by the company, noted as an inconsistency in accounting policies and non-compliance with Ind AS 109.
• Third-Party Confirmations: The audit was limited by the lack of third-party confirmations for trade payables, trade receivables, parties to whom advances were made, and parties from whom unsecured loans had been taken.

The auditors also mentioned specific transactions:

• A transaction with Varanium Cloud Ltd., involving credit notes issued and sales reversed due to a cancellation of an ongoing project, is currently subject to legal and regulatory proceedings, as noted in the audit report.
• Regarding a borrowing repayment from Bank of Baroda, the company did not provide a 'No due certificate' to verify the closure of the borrowing.

The management acknowledged that they are working to obtain the requisite records and supporting documents to make appropriate accounting adjustments upon completion of verification processes related to these qualifications.