Statement of Impact ofAudit Qualifications in the Auditors Report for the Financial year 2023-24
Awaiting price reaction for this filing.
SecUR Credentials Ltd filed a statement disclosing 16 audit qualifications for FY 2023-24, including multiple Disclaimer of Opinion, Qualified Opinion, and one Adverse Opinion. The company reported a net loss of Rs. 712.78 Lakhs on total income of Rs. 843.01 Lakhs, with total assets of Rs. 7,898.67 Lakhs. Key issues include an unrecovered Rs. 205.09 Lakhs debit balance in a director's account without supporting invoices, a Rs. 599.70 Lakhs advance for property acquisition pending for years, and Rs. 331.26 Lakhs in sundry creditors wrongly booked as income. The auditors also flagged a SEBI interim order regarding alleged fictitious transactions with Varanium Cloud Ltd, involving sales reversals of Rs. 235.76 Lakhs. Extensive documentation gaps were cited across statutory dues, bank records, receivables, payables, and actuarial reports, severely limiting audit verification. Management repeatedly attributed failures to staff shortages.
The severity and number of audit qualifications — including an adverse opinion on ECL provisioning and multiple disclaimers — signal material weaknesses in internal controls, governance, and financial reporting integrity. The pending SEBI order on alleged fictitious transactions adds regulatory risk. Investors should be extremely cautious.