| Textual Information(1) |
1. The Standalone financial results (the Statement) of SecureKloud Technologies Limited (the Company) for the period ended June 30, 2026, have been reviewed by the Audit Committee and approved by the Board of Directors of the Company at its meeting held on August 10, 2026. The statutory auditors K Gopal Rao & Co., Chartered Accountants, have expressed an unmodified opinion on the standalone financial results for the three months ended June 30, 2026. 2. The Company operates in a single segment, i.e., Information and Technology Services and hence, does not have any additional disclosures to be made under Ind AS 108 - Operating Segments. 3. The Statement has been prepared in accordance with the Indian Accounting Standards (Ind AS) as prescribed under Section 133 of the Companies Act, 2013 (the Act) read with relevant rules issued thereunder and in terms of Regulation 33 of SEBI (Listing Obligation and Disclosure requirements) Regulations, 2015. 4. In accordance with the directions of the Hon'ble Securities Appellate Tribunal (SAT), the Company remitted a sum of noo lakhs on March 27, 2026 towards penalty, pursuant to the SEBI order bearing reference WTM/AB/CFID_3/22165/22-23 dated December 2022, read with Recovery Proceedings No. 8711 of 2025. Further, pursuant to attachment proceedings initiated by SEBI vide Ref. No. 15222 of 2026 dated March 10, 2026, the Company recognized a provision amounting to U42.01 lakhs towards interest and recovery costs during the current quarter. The said amount was subsequently discharged on May 07, 2026. and the said recovery proceedings stand fully discharged and the matter has been settled. 5. Pursuant to the order of the Securities and Exchange Board of India (SEBI'') dated December 16, 2022, a monetary penalty of Rs. 300 lacs was imposed on Mr Suresh Venkatachari, the Company's Promoter, Chairman and Chief Executive Officer, in connection with alleged violations of the applicable provisions of the SEBI Act and the SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003. Consequent to the aforesaid order, SEBI initiated recovery proceedings and issued Recovery Certificate No. 8710 of 2025 for recovery of the penalty and interest thereon. Mr Suresh Venkatachari has remitted ~ 300 lacs towards the penalty amount pursuant to the said recovery. The applicable interest thereon remains outstanding and is yet to be remitted. 6. Pursuant to attachment proceedings initiated by the Securities and Exchange Board of India (''SEBI'') for recovery of the penalty arising from the order of the Securities Appellate Tribunal (SAT'') dated March 6, 2026, certain equity shares held by the promoter, Mr RS Ramani, were sold by SEBI during the quarter ended June 30, 2026, and the proceeds thereof were appropriated towards settlement of the penalty. Consequently, the promoter's shareholding in the Company reduced from 1.39% to 1.23%. The Company has assessed the impact of the aforesaid sale and confirms that this has no material impact on the Company's financial or operational performance and does not result in any change in the management or control of the Company. 7. The Company continues to face constraints in meeting its operational expenses and discharging its current liabilities. As of June 30, 2026, the Company's current liabilities exceeded its total assets by ~ 1,551.23 lakhs. Further, the Company may be exposed to liabilities arising from legal and regulatory proceedings initiated by various statutory authorities including the Central Board of Direct Taxes (CBDl) and the Central Board of Indirect Taxes and Customs (CBIC). These conditions, individually and collectively indicate the existence of a material uncertainty that may cast significant doubt on the Company's ability to continue as a going concern. However, the promoters have undertaken to provide the necessary financial support to enable the Company to meet its obligations as and when they fall due. Further, the management had identified the three quarters of the financial year 2026-27 as a critical assessment period to evaluate the Company's operational and financial turnaround. In the event that the Company does not achieve the expected improvement during this period, the management will reassess the appropriateness of the going concern assumption, including the need to prepare the financial statements on a liquidation basis. Considering the above factors, the continued financial support from the promoters, and the expected improvement in the operational performance, which has been demonstrated during the quarter under review, the management believes that the Company will be able to generate adequate cash flows to discharge its liabilities in the normal course of business. Accordingly, the accompanying financial statements have been prepared on a going-concern basis, which the management considers appropriate. 8. Pursuant to the order passed by the Securities and Exchange Board of India ('SEBI'') on July 31, 2026, in exercise of the powers conferred under Sections 11(1), 11(4), 11(4A), llB(l) and 11B(2) read with Section 19 of the SEBI Act, 1992, SEBI has prohibited and restrained Mr. Suresh Venkatachari and Mr R. 5. Ramani, Promoters of the Company from accessing the securities market and from buying, selling or otherwise dealing in securities, including units of mutual funds, directly or indirectly, or being associated with the securities market in any manner whatsoever for a period of two years from the date of the order. In addition, they have been imposed a monetary penalty of ~ 10 lacs each. The aforesaid directions of SEBI are applicable to the respective individuals and do not restrict the Company from accessing or participating in the securities market whatsoever. The Board has assessed the impact of the aforesaid order and does not expect the order to have any material adverse impact on its operations or financial performance of the Company. 9.Exceptional items comprise the following (~ in lakhs): Quarter ended Particulars June 30, March 31, 2026 2026 Interest on Penalty and Recovery costs payable to SEBI 142.01 142.01 Amount Receivable from SecureKloud Technoloqies, Inc written off 2608.08 2608.17 Innvestments in SecureKloud Technoloqies, Inc written off 10.112.19 10,112.19 Provision made for Bad and Doubtful Debts 17.13 Total 17.13 142.01 12,720.37 12,862.37 10. Contingent liabilities (Rs.in lakhs) Particulars 30-06-2026 31-03-2026 Disputed statutory dues - Goods and Services Tax 134.07 134.07 - Income Tax 312.59 312.59 The contingent liabilities disclosed above relate to matters pending before various appellate authorities pertaining to various financial years. Based on an assessment of the merits of these cases, management is of the view that the ultimate outcome is unlikely to have a material adverse impact on the Company's financial position. The timing and extent of any potential cash outflows, if any, are presently not ascertainable and will depend upon the final decisions or judgments of the respective authorities. 10. The Figures for the Corresponding Previous period figures have been restated / regrouped wherever necessary to make them comparable. 11. The aforesaid financial results are also available on the Company's website www.securekloud.com |