SecUR Credentials Reports Q3 Financial Results: Net Loss Reported While Limited Review Notes Inventory and Tax Compliance Issues
Secur Credentials Limited has released its standalone unaudited financial results for the quarter ended September 30, 2024. The company's performance highlights include a reported net loss during the period, alongside several observations detailed in the associated limited review report concerning inventory, statutory dues, and expense provisions.The financials provide snapshots of the company’s operational status as of the end of Q3 FY2024 against the previous financial year data.
Financial Performance Summary (Quarter Ended September 30, 2024)
Based on the standalone results, Secur Credentials recorded a loss for the quarter. Key income and expense figures include:| Particulars | As on 30.09.2024 | As on 31.03.2024 |
|---|---|---|
| Revenue from Operations | 75.0 | 52 |
| Other Income | Ta.50 | 0 |
| Total Income | 107 | 50 |
| Total Expenses | 2,065 | 3,e77i |
| Profit/(Loss) before tax (V-VI) | (132.99) | (382.61) |
| Profit/(Loss) for the period from continuing operations | (132.99) | (515.60) |
Balance Sheet Snapshot
The company’s balance sheet shows a mix of non-current assets, current assets, equity, and liabilities as of September 30, 2024.| Asset/Liability Category | As on 30.09.2024 | As on 31.03.2024 |
|---|---|---|
| Non-Current Assets (Sub Total) | 161,476 | 1,687.67 |
| Current Assets (Sub Total) | 5,255.60 | 6,721095 |
| TOTAL ASSETS | 687,036 | 7,858.66 |
| Equity Share Capital | 210,528 | 210,628 |
| Other Equity | (3%.57) | 155,02 |
| Total Equity | 3,729.71 | 22,530 |
| Non-Current Liabilities (Sub Total) | 1,564.20 | 181,927 |
| Current Liabilities (Sub Total) | 687,036 | N/A |
| TOTAL EQUITY AND LIABILITIES | 403.70 | 7,898.67 |
Observations from Limited Review Report and Financial Notes
The limited review report contains several points regarding internal controls and financial compliance that are important for investors:- Inventory Status: Inventory disclosed in the financial statements was not found to exist during physical verification conducted during the current period, which suggests a possible overstatement of inventory in prior periods.
- Statutory Compliance Gaps: The review noted several deficiencies regarding statutory and accounting compliance, including:
* Unpaid statutory dues outstanding as per opening balances on September 30, 2024.
* Non-recognition of provision for gratuity, which is noted as non-compliance with Ind AS 19—Employee Benefits.
* Lack of actuarial valuation for the gratuity liability.
* Failure to make Expected Credit Loss (ECL) provision required under Ind AS 109.
- Management Transactions: The review highlighted that a loan amounting to 152.12 Lakhs granted to a Director is in contravention of Section 185 of the Companies Act, 2013.
- Disclosures and Assets: Current maturities of long-term borrowings were not disclosed due to non-availability of repayment schedules.
- Bookkeeping Issues: The review also noted that Goods and Services Tax (GST) returns reconciliation statements and supporting records were unavailable for the auditors.
The company's unaudited standalone financial results are available on its website, as per regulatory requirements.
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