SecUR Credentials FY24 Auditor Report with 16 Qualifications

Date: May 27, 2026

1. Director's Receivable Balance

Type: Disclaimer of Opinion
Details: Unverified debit balance of ₹205.09 lakhs in director's ledger account without supporting documentation. Management states it represents payments made to director for company expenses.
Management View: Director submitted working of payments; company reviewing details but incomplete due to staff shortage.

2. Unbilled Revenue

Type: Disclaimer of Opinion
Details: No invoices raised for unbilled revenue; compliance with Ind AS 115 could not be verified.
Management View: No material impact as delayed billing is routine; collating details for record.

3. Interest Not Collected on Loans/Advances

Type: Qualified Opinion
Details: Company did not collect interest on loans advanced and advances outstanding as of March 31, 2024.
Management View: No material impact as advances to suppliers are routine business process.

4. Statutory Dues Reconciliation

Type: Disclaimer of Opinion
Details: Reconciliation of statutory dues could not be verified due to lack of relevant details.
Management View: No material impact as it is a reconciliation item.

5. Property Acquisition Advance

Type: Qualified Opinion
Details: Advance payment of ₹599.70 lakhs for immovable property pending for many years without acquisition.
Management View: Acquisition pending due to non-payment of balance; process underway based on fund availability.

6. Expected Credit Loss Provision

Type: Adverse Opinion
Details: No ECL provision on advances given, resulting in inconsistency with Accounting Policies and non-compliance with Ind AS 109.
Management View: Advances are fully recoverable; ECL policy followed only on debtors.

7. Documentation and Confirmations

Type: Disclaimer of Opinion
Details: Lack of documentation for major expenditures and absence of third-party confirmations for trade payables, receivables, advances, and unsecured loans.
Management View: Unable to provide due to staff shortage.

8. Creditor Amount Booked as Income

Type: Qualified Opinion
Details: ₹331.26 lakhs due against property purchase booked as income instead of sundry creditors.
Management View: Amount not payable; written off after no confirmation received from creditor.

9. MSME/Non-MSME Bifurcation

Type: Disclaimer of Opinion
Details: No bifurcation of MSME and Non-MSME debtors/creditors, non-compliance with Schedule III.
Management View: Unable to provide due to staff shortage.

10. SEBI Interim Order and Varanium Cloud Transactions

Type: Disclaimer of Opinion
Details: SEBI interim order regarding alleged fictitious transactions involving Varanium Cloud Ltd and director Harshvardhan Samble. Sales of ₹235.76 lakhs reversed via credit notes due to project cancellation without supporting evidence.
Management View: Invoice cancelled after stopping work due to non-receipt of 100% advance payment.

11. HDFC Bank Borrowing Repayment

Type: Disclaimer of Opinion
Details: Borrowing repayment not verified due to lack of no due certificate, bank statements, or records.
Management View: Unable to provide due to staff shortage.

12. Business Promotion Expenses

Type: Disclaimer of Opinion
Details: Credit card business promotion expenses not verified due to missing statements and records.
Management View: Unable to provide due to staff shortage.

13. Shareholding Disclosure

Type: Disclaimer of Opinion
Details: Non-disclosure of shareholding of equity shareholders holding more than 5% and promoters, non-compliance with Schedule III.
Management View: No impact on P&L; will ensure future compliance.

14. Related Party Disclosures

Type: Qualified Opinion
Details: Comprehensive list of related parties, transactions, and balances not prepared or disclosed per Ind AS 24.
Management View: Unable to provide due to staff shortage.

15. Gratuity Liability

Type: Qualified Opinion
Details: No actuarial valuation report for defined benefit gratuity plan, non-compliance with Ind AS 19.
Management View: Unable to obtain valuation due to staff shortage.

16. Contingent Liabilities Disclosure

Type: Disclaimer of Opinion
Details: Lack of documentation for disputed statutory dues and bank guarantee commitments, preventing proper disclosure per Ind AS 37.
Management View: Unable to provide due to staff shortage.

The company is subject to an SEBI interim order regarding alleged fictitious transactions involving Varanium Cloud Ltd.
Former director Rahul Belwalkar has challenged the SEBI order in the Bombay High Court.
Management repeatedly cites staff shortages as the reason for inability to provide documentation and complete reconciliations.