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Silverline Technologies Ltd.

BSE: 500389 Sector: IT
NSE: SILVERLINE ISIN Code: INE368A01021
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Silverline Technologies Ltd. (SILVERLINE) - Auditors Report

Company auditors report

TO THE MEMBERS OF SILVERLINE TECHNOLOGIES LIMITED. Reports on theFinancial Statements

We have audited the accompanying financial statements of M/s.SILVERLINE TECHNOLOGIES LIMITED ("the Company") which comprise the Balance Sheetas at 31st March2018 the Statement of Profit & Loss and Cash Flow Statement andstatement of change in the equity for the year then ended and a summary of significantaccounting policies and other explanatory information.

Managements Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the mattersstated in Section 134(5) of the Companies Act 2013 ("the Act") with respect tothe preparation of these financial statements that give a true and fair view of thefinancial position financial and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under section 133 of the Act read with Rule 7 of the Companies includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring and accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair whetherdue to fraud or error.

Auditors' Responsibility

Our responsibility is to express an opinion on these financialstatements based on our audit.

We have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditingspecified under Section 143(10) of the Act. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidenceabout the amounts and the disclosures in the financial statements.

The procedures selected depend on the auditor's judgment includingthe assessment of the risks of material misstatement of the financial statements whetherdue to fraud or error. In making those risk assessments the auditor considers theinternal financial control relevant to the Company's preparation of the financialstatements that give a true and fair view in procedures that are appropriate in thecircumstances but not for the purpose of expressing an opinion on whether the Company hasin place an adequate internal financial controls system over financial reporting and theoperating effectiveness of such controls. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the financial statements.

We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our audit opinion on the financial statements.

Opinion

In our opinion and to the best of our information and according tothe explanations given to us the financial statements give the information required bythe Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India including the Ind AS specified insection 133 of the Act of the state of affairs of the Company as at 31st March2018 andits loss and its cash flows and the change in equity for the year ended on that date.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor's Report) Order 2015("the Order") issued by the Central Government of India in terms of

Section 143(11) of the Act we give in the Annexure a statement onthe matters specified in paragraphs 3 and 4 of the Order.

As required by Section 143(3) of the Act we report that: a. Wehave sought and obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purposes of our audit. b. in our opinionproper books of account as required by law have been kept by the Company so far as itappears from our examination of those books; c. The Balance Sheet the Statement of Profitand Loss and the Cash Flow Statement dealt with by this Report are in agreement with thebooks of account; d. In our opinion the aforesaid financial statements comply with theAccounting Standards specified under section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014. e. On the basis of written representations received fromthe directors as on date new board reconstituted in the EGM of the company held on 3stJuly2018 in place of promoters / Directors who was disqualified under the notificationnotify by the MCA f. With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 inour opinion and to the best of our information and according to the explanations given tous: (i) The Company has in accordance with the generally accepted accounting practicedisclosed the impact of pending litigations on its financial position in its financialstatements.

(ii) The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses under theapplicable law or accounting standards.

For JMT & ASSOCIATES

Chartered Accountants (Registration no.104167W)

Arun S. Jain

Partner M. no: 043161

Place : Mumbai

Dated : 3rd August2018

ANNEXURE TO INDEPENDENT AUDITORS' REPORT

Referred to in the Auditor's Report of even date to the members ofSILVERLINE TECHNOLOGIES LIMITED MUMBAI on the financial statements for the year ended 31st March2018

(i) In respect of its fixed assets: a) The Company has maintainedproper records showing full particulars including quantitative details and situation offixed assets on the basis of available information. b) As explained to us the managementduring the year has physically verified the fixed assets in a phased periodical mannerwhich in our opinion is reasonable having regard to the size of the Company and nature ofits assets. no material discrepancies were noticed on such physical verification. c) Inour opinion the Company has not disposed off substantial part of fixed assets during theyear and the going concern status of the Company is not affected. a) As explained to usthe Company did not have any physical stock during the year under report. b) In ouropinion and according to the information and explanations given to us our comments onmatters specified in clause of the Order are not required. (iii) In respect of loanssecured or unsecured granted by the Company to companies firms or other parties coveredin the register maintained under section 189 of the Companies Act 2013: a) The Companyhas given loans or advances to one such party. in respect of such loans or advances themaximum amount outstanding at any time during the year was Rs 331 Lacs. b) n our opinionand according to the information and explanations given to us the rate of interestwherever applicable andi other terms and conditions of the loans or advances given by theCompany are prima facie not prejudicial to the interest of the Company. no interestcharge during the year under report. c) The loans or advances given by the Company to suchparties are repayable on demand. no interest charge onsuch account during the year.

d) n respect of the said loans or advances and interest thereonthere are no overdue amounts.i iv) in our opinion and according to the information andexplanations given to us the Company has adequate internal control procedurescommensurate with the size of the Company and the nature of its business with regards topurchase of fixed assets and for the sale of services. During the course of our audit wehave not observed any major weaknesses in internal controls. v) The Company has notaccepted any Fixed Deposits from the public other than from director and their relatives.vi) The Central Government has not prescribed maintenance of cost records pursuant tosection 148(1) of the companies Act 2013. Therefore the provision of clause (vi) ofparagraphs 3 of the Order are not applicable to the Company. vii) a) According to theinformation and explanations given to us company has defaulted in depositing theundisputed statutory dues in respect of Professional Tax income tax deducted at Sourceby it . b) As regards the disputed statutory liabilities – Based on therepresentation by the Management we report that there are disputed income tax liabilitiesof Rs. 15206 lakhs in respect of the Assessment Years 2002-03; 2003-04: 2004-05 2011-12and 2012-13 as on date of our reporting. Details of authorities before whom the taxproceedings are pending have not been provided to us and we are also not able to commenton the outcome of income tax proceedings and consequential total income tax liabilitiesThe company has not filed income tax return from assessment year 2013-14 onwards. viii)The company have accumulated losses at the end of the year. ix) According to theinformation and explanation giver to us by the management and based on our examination ofthe record we are of the opinion the Company has not defaulted in repayment of dues ifany to the financial institutions Banks & debenture holders. x) According to theinformation and explanation given to us the Company has not given guarantee in respectloans taken by other companies from Banks and financial institutions . xi) During theyear the Company has not raised any money by way of public issue and the question ofdisclosing the end use of money by the management does not arise. xii) During the courseof our examination of the books and records of the company carried out in accordance withthe generally accepted auditing practices in India and according to the information andexplanations given to us we have neither come across any instance of fraud on or by theCompany noticed or reported during the year nor have we been informed of any such caseby the management.

For JMT & ASSOCIATES

Chartered Accountants (Registration no.104167W)

Arun S. Jain

Partner M. no: 043161

Place : Mumbai

Dated : 3rd August2018