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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

Report on the Audit of theStandalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements of SilverlineTechnologies Limited("the Company") which comprise the Balance Sheet as atMarch 31 2021 the statement of Profit and Loss(including Other Comprehensive lncome)thestatement Of Change In Equityand the statement of Cash Flowsfor the year then ended andnotes to the financial statements including a summary of significant accounting policiesand other explanatory information (hereinafter referred to as "Standalone FinancialStatements").

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Companies Act 2013 (the "Act") in the manner so required and give a trueand fair view in conformity with the Indian accounting standards prescribed under section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended ( Ind AS') and other Accounting principles generally accepted in India of thestate of affairs of the Company as at March 31 2021 of its Loss and total comprehensiveincome its changes in equity and its cash flow for the year ended on that date. In ouropinion and to the best of our information and according to the explanations given to usthe aforesaid standalone financial statements give the information required by theCompanies Act 2013 (the "Act") in the manner so required and give a true andfair view in conformity with the Indian accounting standards prescribed under section 133of the Act read with the Companies (Indian Accounting Standards) Rules 2015 as amended ( Ind AS') and other Accounting principles generally accepted in India of the state ofaffairs of the Company as at March 31 2021 of its Loss and total comprehensive incomeits changes in equity and its cash flow for the year ended on that date. Key Audit MattersKey audit matters are those matters that in our professional judgement were of mostsignificance in our audit of the standalone Ind AS financial statements for the year underaudit. We determined that there is no key audit matter to be communicated in our audit.Information Other than the Standalone Financial Statements and Auditor*s Report ThereonThe Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to Board's Report andShareholder's Information but does not include the standalone financial statements andour auditor's report thereon.

Our opinion on the standalone financial statements does not cover the other informationand we do not express any form of assurance conclusion thereon. In connection with ouraudit of the standalone financial statements our responsibility is to read the otherinformation and in doing so consider whether the other information is materiallyinconsistent with the standalone financial statements or our knowledge obtained duringthe course of our audit or otherwise appears to be materially misstated. If based on thework we have performed we conclude that there is a material misstatement of thisotherinformation we are required to communicate the matter to those charges withgovernance as require under SA 720 The Auditor's responsibilities Relating to otherInformation'. We have nothing to report in this regard.

Responsibility of Management and Those Charged with Governance for the StandaloneFinancial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Act with respect to the preparation of these standalone financial statementsthat give a true and fair view of the financial position financial performance and cashflows of the Company in accordance with the accounting principles generally accepted inIndia including the accounting Standards specified under section 133 of the Act. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateimplementation and maintenance of accounting policies; making judgments and estimates thatare reasonable and prudent; and design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error. In preparing the financialstatements management is responsible for assessing the Company's ability to continue as agoing concern disclosing as applicable matters related to going concern and using thegoing concern basis of accounting unless management either intends to liquidate theCompany or to cease operations or has 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 Standalone 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 weexercise professional judgment and maintain professional skepticisnJ throughout the audit.We also:

assess the risks of material misstatement of the financial statements whether due tofraud or error design and perform audit procedures responsive to those risks and obtainaudit evidence that is sufficient and appropriate to provide a basis for our opinion. Therisk of not detecting a material misstatement resulting from fraud is higher than for oneresulting from error as fraud may involve collusion forgery intentional omissionsmisrepresentations or the override of internal control.

dentify 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.

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 alsoprovide those charged with governance with a statement that we have complied with relevantethical requirements regarding independence and to communicate with them allrelationships and other matters that may reasonably be thought to bear on ourindependence and where applicablerelated safeguards. Report on other Legal andRegulatory 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 Act we give in the "Annexure A" a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.

2. As required by sub-section 3 of Section 143 of the Act based on our audit we reportthat:

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 the Cash Flow Statement and the Statement of Change in Equity dealt withby this Report are in agreement with the relevant books of account. d) In our opinion theaforesaid standalone financial statements comply with the Accounting Standards specifiedunder Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014 e)On the basis of the written representations received from the directors of the Company ason 31st March 2021 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2021 from being appointed as a director in terms ofsubsection 2 of Section 164 of the Act. f) With respect to the adequacy of the internalfinancial controls over financial reporting with reference to these standalone financialstatements of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B" to thisreport. g) With respect to the othermatters to be included in the Auditor's Report in accordance with Rule 11 of the Companies(Audit and Auditors) Rules 2014 as amended in our opinion and to the best of ourinformation and according to the explanations given to us:

I. The Company does nothave any pending litigations which wouldimpact itsfinancialposition as at March 31 2021; II. The Company did not have any outstanding long-termcontracts including derivative contracts as at March 31 2021 for which there were anymaterial foreseeable losses; and III. As at March 31 2021 there were no amounts whichwere required to be transferred to the Investor Education and Protection Fund by theCompany.

For JMT & ASSOCIATES
Chartered Accountants
FR No. 104167W
Sd/-
Arun Jain
Partner
M No.043161
UDIN:21043161AAAAKD7564
Date:October 232021

ANNEXURE A TO THE INDEPENDENT AUDITORS' REPORT

(Referred to in paragraph 1 under ‘Report on Other Legal and RegulatoryRequirements' section of our report to the Members of SILVERLINE TECHNOLOGIES LIMITEDofeven date)

(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) The Company has a regular programme of physical verification of its fixed assets bywhich fixed assets are verified in a phased manner over a period of three years. Inaccordance with this programme certain fixed assets were verified during the year and nomaterial discrepancies were noticed on such verification. In our opinion this periodicityof physical verification is reasonable having regard to the size of the Company and thenature of its assets.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company THE Company does not own any immovable propertyhence holding of any title deeds of immovable properties in its name does not arise.

(d) As per the information provided to us the Company's business does not involveinventory and accordingly the requirement of paragraphs 3 (ii) order are not applicableto the company.

( e) According to the information and explanations given to us the Company has grantedany loans secured or unsecured to Companies Firms Limited Liability Partnerships orother parties covered in the register maintained under Section 189 of the Act.Accordingly the provisions of paragraph 3 (iii) (a) (b) and (c) of the Order are notapplicable to the Company.

( f ) In our opinion and according to the information and explanations given to us theCompany has not granted any loans or made any investments or provided any guarantee orsecurity to the parties covered under section 185. Based on our audit procedures performedfor the purpose of reporting the true and fair view of the financial statements andaccording to the information and explanations given by the management the Company hascomplied with the provisions of section 186 of the Act.

The Company has not accepted any deposits from the public during the year.

To the best of our knowledge and as explained the Central Government has notprescribed maintenance of cost records under sub-section 1 of section 148 of the Act. (i)In respect of Statutory dues:

(a) According to the information and explanations given to us and the records of thecompany examined by us the Company is not regular in depositing with the appropriateauthorities undisputed statutory dues including provident fund employees' stateinsurance sales-tax income tax goods and service tax cess and other material statutorydues applicable to it. According to the information and explanations given to usundisputed amounts of Income Tax Liabilities for the financial years 2017-18 and 2018-19amounting to more than Rs.897000/- and other Statutory Dues of Rs.784459/- wereoutstanding for payment at the year end for a period of more than six months from thedate they became payable.

(b) According to the information and explanations given to us and based on the recordsof the Company examined by us there are disputed dues on account of income tax ofRs.15206 Lacs in respect of Assessment Years 2001-02; 2002-03; 2003-04; 2011-12 and2012-13 as on date of our reporting. As informed to us the company has maderepresentation and application before the concerned authorities and where required legalrepresentations are made for adjudication of the said matter. As explained to us thedispute is at different levels and the management is taking all the necessary steps toprotect the interest of the company. In our opinion and according to the information andexplanations given by the management we are of the opinion that the Company has notdefaulted in repayment of dues to a financial institution bank Government or debentureholders as applicable to the company.

Based on our audit procedures performed for the purpose of reporting the true and fairview of the financial statements and according to the information and explanations givenby the management the Company has not raised any money by way of initial public offer orfurther public offer (including debt instruments). The money raised during the year byway of a term loan was applied for the purposes for which it was raised. Based upon theaudit procedures performed for the purpose of reporting the true and fair view of thefinancial statements and according to the information and explanations given by themanagement we report that no fraud on or by the officers and employees of the Company hasbeen noticed or reported during the year.

Based on our audit procedures performed for the purpose of reporting the true and fairview of the financial statements and according to the information and explanations givenby the management the Company has complied with provisions of Section 197 read withSchedule V to the Act.

In our opinion the Company is not a Nidhi Company. Therefore the provisions ofparagraph 3 (xii) of the Order are not applicable to the Company.

Based on our audit procedures performed for the purpose of reporting the true and fairview of the financial statements and according to the information and explanations givenby the management transactions with the related parties are in compliance with theprovisions of section 177 and 188 of the Act where applicable and the details have beendisclosed in the notes to the financial statements as required by the applicableaccounting standards.

According to the information and explanations given to us and on an overall examinationof the balance sheet the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year.

(ii) Based on our audit procedures performed for the purpose of reporting the true andfair view of the financial statements and according to the information and explanationsgiven by the management the Company has not entered into any non-cash transactions withdirectors or persons connected with the directors.

(iii) According to the information and explanations given to us the provisions ofsection 45-IA of the Reserve Bank of India Act 1934 are not applicable to the Company

For JMT & ASSOCIATES
Chartered Accountants
FR No. 104167W
Arun S. Jain
Partner
M No. 043161
UDIN : 21043161AAAAKD7564
Place : Mumbai
Date : October 23 2021

ANNEXURE B TO THE INDEPENDENT AUDITORS' REPORT

(Annexure Referred to in paragraph 2(A)(f) under ‘Report on Other Legal andRegulatory Requirements' section of our report to the Members of SILVERLINE TECHNOLOGIESLIMITEDof even date)

We have audited the internal financial controls over financial reporting of SILVERLINETECHNOLOGIES LIMITED(hereinafter referred to as "the Company") as of March31 2021 in conjunction with our audit of the standalone financial statements of theCompany for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Board of Directors of the Company is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on

Audit of Internal Financial Controls Over Financial Reporting ("the GuidanceNote") issued by the

Institute of Chartered Accountants of India. These responsibilities include the designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the orderly and efficient conduct of its business thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Act.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting of the Company based on our audit. We conducted ouraudit in accordance with the Guidance Note issued by the Institute of CharteredAccountants of India and the Standards on Auditing prescribed under sub-section 10 ofSection 143 of the Act to the extent applicable to an audit of internal financialcontrols both applicable to an audit of Internal Financial Controls and both issued bythe Institute of Chartered Accountants of India. Those Standards and the Guidance Noterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial 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 judgement including the assessment of the risks ofmaterial misstatement of the standalone financial statements whether due to fraud orerror.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the internal financial controls system overfinancial 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 themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the Company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of standalonefinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the Company are being made only in accordance withauthorisations of management and directors of the Company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the Company's assets that could have a material effect on the standalonefinancial 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 JMT & ASSOCIATES
Chartered Accountants
FR No. 104167W
Arun S. Jain
Partner
M No. 043161
UDIN : 21043161AAAAKD7564
Place : Mumbai
Date : October 23 2021

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