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SecUR Credentials Ltd.

BSE: 535027 Sector: Others
NSE: SECURCRED ISIN Code: INE195Y01010
BSE 05:30 | 01 Jan SecUR Credentials Ltd
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SecUR Credentials Ltd. (SECURCRED) - Auditors Report

Company auditors report

To the Members of SecUR Credentials Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the financial statements of SecUR Credentials Limited ("theCompany") which comprise the balance sheet as at 31st March 2021 and the statementof profit and loss and statement of cash flows for the year then ended and notes to thefinancial statements including a summary of significant accounting policies and otherexplanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by theCompanies Act 2013 in the manner so required and subject to notes to accounts formingpart of the financial statements give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at March 31 2021 and its profit/loss and its cash flows for the year ended on thatdate.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountantsof India together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Companies Act 2013 and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters:

Key audit matters (‘KAM') are those matters that in our professional judgmentwere of most significance in our audit of the financial statements of the current period.These matters were addressed in the context of our audit of the financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters.

In our opinion and to the best of our information and according to the explanationsgiven to us the financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India; of the state of the affairs of the company as at31st March 2021 and its profits and cash flows for the year ended on thatdate.

Responsibilities of Management and Those Charged with Governance for the FinancialStatements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the accounting Standards specified undersection 133 of the Act. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding of theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

In preparing the financial statements the Board of Directors is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessthe Board of Directors either intends to liquidate the Company or to cease operations orhas no realistic alternative but to do so.

In preparing the financial statements the Board of Directors is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessthe Board of Directors either intends to liquidate the Company or to cease operations orhas no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional scepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143(3)(i) of theCompanies Act 2013 we are also responsible for expressing our opinion on whether thecompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls

Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.

Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

Evaluate the overall presentation structure and content of the financial statementsincluding the disclosures and whether the financial statements represent the underlyingtransactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Companies Act 2013 we give in the "Annexure A" a statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable.

2. As required by Section 143(3) of the Act we report that:

a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit. b) In ouropinion proper books of account as required by law have been kept by the Company so faras it appears from our examination of those books c) The Balance Sheet the Statement ofProfit and Loss and the Cash Flow Statement dealt with by this Report are in agreementwith the books of account. d) In our opinion the aforesaid financial statements complywith the Accounting Standards specified under Section 133 of the Act read with Rule 7 ofthe Companies (Accounts) Rules 2014. e) On the basis of the written representationsreceived from the directors as on 31st March 2021 taken on record by the Board ofDirectors none of the directors is disqualified as on 31st March 2021 from beingappointed as a director in terms of Section 164(2) of the Act. f) With respect to theadequacy of the internal financial controls over financial reporting of the Company andthe operating effectiveness of such controls refer to our separate Report in"Annexure B". g) With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the

Companies (Audit and Auditors) Rules 2014 in our opinion and to the best of ourinformation and according to the explanations given to us:

i The Company does not have any pending litigations which would impact its financialposition ii The Company did not have any long-term contracts including derivativecontracts for which there were any material foreseeable losses. iii There has been nodelay in transferring amounts required to be transferred to the Investor Education andProtection Fund by the Company.

For S. D. Mehta & Co.
Chartered Accountants
(Firm's Registration No. 137193W)
Dharit S. Mehta
Place: Ahmedabad Partner
Date: 23rd Nov 2021 (Membership No. 157873)
UDIN: 21157873AAAAJE6158

ANNEXURE A TO THE INDEPENDENT AUDITOR'S REPORT

(1) According the information representations given to us and verification by us theCompany is maintaining proper records showing full particulars quantitative details andsituations of fixed assets.

As explained to us the management at reasonable interval has physically verified allthe fixed assets which in our opinion is reasonable having regard to the size of Company.The Company has also formulated a regular programme of physical verification of its fixedAssets by which physical verification of assets is carried out by the auditors.

(2) The Company is in the business of providing services and does not have any physicalInventories Reporting under clause 3(ii) of the order is not applicable to the company.

(3) According to the information and representations the company has not grantedLoans secured or unsecured to companies firms LLP's or other parties covered in theregister maintained under Section 189 of the Companies Act 2013. (4) According to theinformation and representation the company has compiled with provision of sections 185& 186 of the act in respect of grant of loans & making investment & providingguarantees and securities as applicable.

(5) According to the information the Company has not accepted any deposit attractingthe provision of section 73 to 76 of Companies Act 2013 or against the directives ofReserve Bank of India.

(6) According to the information the Company has not maintained Cost Records asspecified by Central Government u/s 148(1) of the Companies Act 2013 as it's notapplicable to the company.

(7) a) In respect of statutory dues according to the records and information givendues in respect of Provident Fund Employees State Insurance Income Tax Sales TaxService Tax Customs Duty Excise Duty Value Added tax Goods and Service Tax Cess andany other statutory dues have been delayed in deposited with appropriate authorities andthere are undisputed amounts outstanding as on 31.03.2021 for a period of more than sixmonths from the date they became payable are as under;

Nature Outstanding for more than 6 months
PF 3210305
ESIC 1560629
Prof Tax 2413577
TDS - Others 7505247
TDS - Salary 5665162
Servcie Tax 1170752
Interest on Dividend Tax 75380
GST 26085149
Total 47686201

b) According to the information and explanation given to us undisputed / disputedamount payable in respect of Income Tax Wealth tax Sales tax Service Tax Customs DutyExcise Duty & cess as on 31.03.2021 is as follow:-

Nature of Dues Amount (In Rs.) Period to which the amount relates Forum where dispute is pending
TDS Rs.1826330/- 2010-2019 Income Tax Authorities

(8) According to the information and explanation given the company hasdelayed/defaulted in repayment of dues to financial institution banks government or duestowards debenture holders. (Refer to Note No :- 29)

Sr. No. Bank Name Nature of Loan
1 State Bank of India CC/GECL
2 Bank of Baroda CC
3 HDFC Bank Vehicle Loan
4 Jain sons Finlease Ltd Working Capital
5 Aditya Birla Finance Ltd Working Capital
6 Arohan Financial Services Ltd Working Capital

The Company has obtained borrowings from banks for which they availed moratorium forrepayment of principal & Interest as per the RBI guidelines. As per the RBInotification No. DOR No.BP.BC.71/21.04.048/2019-20" dated May 23 2020: LendingInstitution are permitted at their discretion to convert the accumulated interest forthe deferment period up to August 312020 into a funded interest term loan(FITL) whichshall be repayable not later than march 31 2021.

(9) According to information given the company has not raised any money through furtherpublic offer. In our opinion and according to the information and explanations given tous the money raised by way of term loan has been applied for the purpose for which it wasobtained.

(10) There was no case of fraud reported by or against the company during the year.

(11) In our opinion and according to the information and explanations given to us theCompany has paid/provided managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the Act.

(12) The Company is not a Nidhi Company.

(13) According to the information and explanations all the transactions with relatedparties are in compliance with section 177 and 188 of the Companies Act 2013 and havebeen disclosed in financial statements as required by accounting standards.

(14) The Company has not made any preferential allotment of shares or private placementof share or convertible debentures.

(15) As per the information and verification the Company has not entered into any noncash transaction with the directors or person connected with him as mentioned in section192 of the Companies Act 2013.

(16) The Company is not required to register u/s 45-IA of Reserve Bank of India Act1934 as financing is not the main business of the company.

For S. D. Mehta & Co.
Chartered Accountants
(Firm's Registration No. 137193W)
Dharit S. Mehta
Place: Ahmedabad Partner
Date: 23rd Nov 2021 (Membership No. 157873)
UDIN: 21157873AAAAJE6158

ANNEXURE B TO THE INDEPENDENT AUDITOR'S REPORT

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of SECURCREDENTIALS LIMITED ("the Company") as of March 31 2021 in conjunction withour audit of the standalone financial statements of the Company for the year ended on thatdate.

Management's Responsibility for Internal Financial Controls

The Company's Management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessthe safeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation of reliablefinancial information as required under the Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the internal financial controls overfinancial reporting of the Company based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") issued by the Institute of Chartered Accountantsof India and the Standards on Auditing prescribed under Section 143(10) of the CompaniesAct 2013 to the extent applicable to an audit of internal financial controls. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of Standalone financial statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that

(1) Pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) Provide reasonable assurance that transactions are recorded as necessary to permitpreparation of Standalone financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance with authorizations of management and directors of the company; and

(3) Provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 31 2021 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.

For S. D. Mehta & Co.
Chartered Accountants
(Firm's Registration No. 137193W)
Dharit S. Mehta
Place: Ahmedabad Partner
Date: 23rd Nov 2021 (Membership No. 157873)
UDIN: 21157873AAAAJE6158

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