Secur Credentials reviewer says inventory was not found

Secur Credentials Limited reported Rs 13.64 crore of inventory at 30 September 2026, but its reviewer said the inventory disclosed in the accounts was not found during physical verification and that any prior-period overstatement had not been quantified. The note accompanied a Rs 1.92 crore quarterly loss and several record-verification limitations.

What did Secur Credentials find in its inventory review?

The reviewer said Secur Credentials’ disclosed inventory “does not found to exist” during physical verification conducted in the current period. Secur Credentials reported inventories of Rs 13.64 crore at both 30 September 2026 and 31 March 2026, meaning the balance-sheet amount was unchanged over the six-month period despite the verification finding.

The reviewer said the finding indicated a possible overstatement of inventory in prior periods, but did not quantify the financial effect. The note does not identify an inventory category, report an adjustment to the Rs 13.64 crore balance, or state that Secur Credentials had written down inventory in its September 2026 financial results.

The limited review report was dated 12 November 2026 and stated that it was narrower in scope than an audit. The reviewer said it had relied on management assumptions and explanations for the matters in the notes, and said its review conclusion was not modified in respect of those matters.

Which statutory records could Secur Credentials not provide?

Secur Credentials did not provide Goods and Services Tax, or GST, returns, reconciliation statements and supporting records to the reviewer. The reviewer therefore said it could not verify the correctness and completeness of GST-related balances and statutory compliance for the quarter ended 30 September 2026.

Provident Fund, or PF, and Employees’ State Insurance, or ESIC, challans, returns and reconciliation statements were also not produced for verification. The reviewer said it could not comment on the accuracy and completeness of those statutory dues and related compliance, while noting that statutory dues in the opening balances remained unpaid at 30 September 2026.

The filing does not quantify the unpaid statutory dues. It reports total current liabilities of Rs 19.31 crore at 30 September 2026, compared with Rs 19.36 crore at 31 March 2026, but does not separately identify the GST, PF or ESIC amounts within that total.

Secur Credentials’ website had not been updated as of the limited-review date, according to the notes. The reviewer consequently could not verify compliance with requirements covering website disclosure and periodic updates of information and policies.

Were Secur Credentials’ customer and supplier balances confirmed?

No independent confirmations were received for Secur Credentials’ trade receivables and trade payables during the limited review. The reviewer said both balances remained subject to confirmation and were considered on the basis of management certification.

Trade receivables fell to Rs 23.12 crore at 30 September 2026 from Rs 24.57 crore at 31 March 2026, while trade payables were unchanged at Rs 5.39 crore on both dates. The balance-sheet movement does not change the reviewer’s finding that no independent confirmations were received for the closing balances.

The reviewer also said current maturities of long-term borrowings were not disclosed because repayment schedules were unavailable, resulting in non-compliance with applicable disclosure requirements. Secur Credentials reported non-current borrowings of Rs 6.64 crore and current borrowings of Rs 9.88 crore at 30 September 2026, against Rs 6.78 crore and Rs 9.94 crore respectively at 31 March 2026.

The half-year cash-flow statement showed a Rs 13.86 lakh reduction in long-term borrowings and a Rs 5.82 lakh reduction in short-term borrowings for the six months ended 30 September 2026. The filing does not provide repayment schedules that would establish how much long-term debt was due within the next reporting period.

What accounting provisions did Secur Credentials not make?

Secur Credentials did not recognise a gratuity provision, which the reviewer said was not compliant with Indian Accounting Standard 19, or Ind AS 19, on employee benefits. The company had also not obtained the actuarial valuation required under Ind AS 19, so the gratuity liability, if any, was neither recognised nor adequately disclosed.

Secur Credentials also did not make an Expected Credit Loss, or ECL, provision required under Ind AS 109. This note relates to the Rs 23.12 crore trade-receivables balance at 30 September 2026, although the filing does not estimate the required ECL charge or its effect on the reported loss.

The notes also refer to a lack of reasonable certainty over future taxable profits in the context of Ind AS 12 on income taxes. The balance sheet nevertheless reports deferred-tax assets of Rs 47.59 lakh at both 30 September 2026 and 31 March 2026, with no quantified adjustment disclosed in the filing.

Non-current provisions were Rs 42.29 lakh at 30 September 2026, up from Rs 31.56 lakh at 31 March 2026. That line does not identify its components, so it does not establish that a gratuity obligation has been recognised.

How did Secur Credentials’ September 2026 results change?

Secur Credentials reported revenue from operations of Rs 13.25 lakh for the quarter ended 30 September 2026, down from Rs 13.65 lakh in the June 2026 quarter and Rs 14.05 lakh a year earlier. Total expenses declined to Rs 74.65 lakh from Rs 75.41 lakh sequentially, but remained above quarterly revenue.

The quarterly net loss widened to Rs 1.92 crore from Rs 61.76 lakh in the June 2026 quarter, as Secur Credentials reported Rs 1.30 crore of exceptional items in September. The filing does not describe those exceptional items, so it does not link them to the inventory finding or another issue in the review notes.

For the half year ended 30 September 2026, revenue was Rs 26.90 lakh, compared with Rs 27.25 lakh in the corresponding prior-year half year. Net loss was Rs 2.53 crore versus Rs 1.27 crore, while depreciation and amortisation was Rs 1.17 crore against Rs 1.18 crore in the prior-year period.

The half-year cash-flow statement reported net cash generated by operating activities of Rs 39.01 lakh, compared with net cash used in operating activities of Rs 34.16 lakh for the year ended 31 March 2026. Cash and cash equivalents were Rs 24,000 on the 30 September 2026 balance sheet, compared with Rs 78,000 at 31 March 2026.

Conclusion

The limited-review notes place a Rs 13.64 crore reported inventory balance alongside a physical-verification finding that the disclosed inventory was not found. The filing also records unavailable GST, PF and ESIC records, unconfirmed trade balances, unrecognised ECL and gratuity provisions, and incomplete borrowing-maturity disclosure, without quantifying the effect of several matters.

Secur Credentials’ board approved on 12 November 2026 an application to BSE Limited for revocation of the suspension of trading in its equity shares, after considering pending compliances and outstanding payments. The next disclosures to watch are the company’s regularisation of those matters and any quantified correction to inventory, statutory dues, receivables provisioning or gratuity liability.