Financial Results for the quarter ended December 31, 2024
Awaiting price reaction for this filing.
SecUR Credentials Ltd, India's first background screening company listed on NSE Emerge, reported a net loss of Rs. 215.97 Lakhs for Q3 FY25, a dramatic reversal from a profit of Rs. 41.44 Lakhs in Q3 FY24. Revenue from operations turned negative at Rs. 87.49 Lakhs compared to Rs. 704.26 Lakhs in the same quarter last year. For the nine months ended December 2024, the company posted a loss of Rs. 731.57 Lakhs versus a profit of Rs. 467.27 Lakhs in the prior year period. The statutory auditors raised multiple red flags including inventory overstatement in prior periods, loan of Rs. 127.34 Lakhs to a Director in violation of Section 185 of Companies Act, non-compliance with gratuity accounting (Ind AS 19), missing GST/PF/ESIC records, and unmade ECL provisions. Statutory dues remain unpaid as of December 31, 2024.
The stock shows severe deterioration with mounting losses and multiple auditor red flags indicating poor internal controls and governance issues. The loan to a director and various non-compliances may attract regulatory scrutiny and pose going concern risks given cumulative losses.