Silverline Technologies Ltd.की ऑडीटर रिपोर्ट

Mar 31, 2025

I have audited the accompanying Standalone Annual Statement of Financial Results of Silverline
Technologies Limited (hereinafter referred to as "the Company") for the quarter and year ended 31st March,
2025, attached herewith, being submitted by the Company pursuant to the requirements of Regulation
33 and Regulation 52(4) read with Regulation 63 of the Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements) Regulations, 2015, as amended (hereinafter referred to as the
"Listing Regulations")

Qualified Opinion

In my opinion and to the best of my information and according to the explanations given to me, except for
the possible effects of the matters described in the Basis for Qualified Opinion section below, the standalone
financial results:

A. are presented in accordance with the requirements of Regulation 33 and Regulation 52(4) read with
Regulation 63 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
("Listing Regulations"); and

B. give a true and fair view, in conformity with the recognition and measurement principles laid down in the
applicable Indian Accounting Standards and other accounting principles generally accepted in India, of
the net profit/loss and other comprehensive income and other financial information of the Company for
the year ended 31st March, 2025.

Basis for Qualified Opinion

I have conducted the audit in accordance with the Standards on Auditing (SAs) specified under section
143(10) of the Companies Act, 2013. I am independent of the Company in accordance with the Code of Ethics
issued by the Institute of Chartered Accountants of India (ICAI) and have fulfilled my ethical responsibilities
in accordance with these requirements. However, my opinion is subject to qualifications due to the following
matters:

The company has unsecured borrowings of for which no interest has been charged. The related
agreements and third-party confirmations are not available for review.

A reconciliation of GST credit receivables with the GST portal is pending. Until this reconciliation is
completed, the accuracy of the input tax credit and the associated liability position may be subject
to change.

Trade payables have not been classified between Micro, Small, and Medium Enterprises (MSME).
This omission may lead to non-compliance with disclosure requirements under the MSMED Act,
2006, impacting regulatory compliance and financial transparency. Further Outstanding balances
with certain suppliers have not been confirmed. Confirmation from counterparty is not available in
case of outstanding receivable.

Certain procedural gaps were observed in documentation and records. Certain sales lacked
supporting documents like E-Way Bills or Delivery Challans, and Goods Inward Reports for purchases
were not provided. Additionally, a Fixed Asset Register was not maintained.

Managements and Board of Directors'' Responsibilities for the Standalone Annual Financial Results

The Statement has been prepared on the basis of the standalone annual financial statements. The Board
of Directors of the Company are responsible for the preparation and presentation of the Statement that
gives a true and fair view of the net profit and other comprehensive income of the Company and other
financial information in accordance with the recognition and measurement principles laid down in IND AS,
prescribed under Section 133 of the Act read with relevant rules issued thereunder and other accounting
principles generally accepted in India and in compliance with Regulation 33 of the Listing Regulations. This
responsibility also includes maintenance of adequate accounting records in accordance with the provisions
of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and
other irregularities; selection and application of appropriate accounting policies; making judgments and
estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation of the Statement that give a true and fair
view and are free from material misstatement, whether due to fraud or error.

In preparing the Statement, the Board of Directors are responsible for assessing the Company''s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to
cease operations, or has no realistic alternative but to do so. The Board of Directors are also responsible for
overseeing the Company''s financial reporting process.

The Board of Directors is responsible for overseeing the Company''s financial reporting process.

Auditor''s Responsibilities for the Audit of the Standalone Annual Financial Results

My objectives are to obtain reasonable assurance about whether the standalone annual financial results
as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s
report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee
that an audit conducted in accordance with SAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of these
standalone annual financial results.

As part of an audit in accordance with SAs, I exercise professional judgment and maintain professional
skepticism throughout the audit. I also:

• Identify and assess the risks of material misstatement of the standalone annual financial results, whether
due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting
a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances. Under Section 143(3) (i) of the Act, I am also responsible

for expressing my opinion through a separate report on the complete set of financial statements on
whether the company has adequate internal financial controls with reference to financial statements in
place and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures in the standalone annual financial results made by the Management
and Board of Directors.

• Conclude on the appropriateness of the Management and Board of Directors use of the going concern
basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt on the appropriateness of this assumption.
If I conclude that a material uncertainty exists, I required to draw attention in my auditor''s report to the
related disclosures in the standalone annual financial results or, if such disclosures are inadequate,
to modify my opinion. My conclusions are based on the audit evidence obtained up to the date of my
auditor''s report. However, future events or conditions may cause the Company to cease to continue as
a going concern.

• Evaluate the overall presentation, structure and content of the standalone annual financial results,
including the disclosures, and whether the standalone annual financial results represent the underlying
transactions and events in a manner that achieves fair presentation.

• Obtain sufficient appropriate audit evidence regarding the Statement to express an opinion on the
Statement. Materiality is the magnitude of misstatements in the Statement that, individually or in
aggregate, make it probable that the economic decisions of a reasonably knowledgeable user of the
Statement may be influenced. I consider quantitative materiality and qualitative factors in

i) planning the scope of our audit work and in evaluating the results of our work; and

ii) to evaluate the effect of any identified misstatements in the Statement

• I communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies in internal
control that I identify during my audit.

• I also provide those charged with governance with a statement that I have complied with relevant
ethical requirements regarding independence, and to communicate with them all relationships and
other matters that may reasonably be thought to bear on my independence, and where applicable,
related safeguards.

• I also performed procedures in accordance with the Circular No. CIR/CFD/CMD 1/44/2019 dated
29th March, 2019 issued by the SEBI under Regulation 33(8) of the Listing Regulations to the extent
applicable.

Other Matter(s)

The standalone annual financial results include the results for the quarter ended 31st March, 2025 being the
balancing figure between the audited figures in respect of the full financial year and the published audited
year to date figures up to the third quarter of the current financial year. Our opinion on the Audit of the
Financial Results for the year ended 31st March, 2025 is qualified in respect of this matter.

For, S Parth & Co
Chartered Accountants
Firm Registration Number: 154463W

Date: 16/07/2025 CA Parth Shah

Place: Ahmedabad Proprietor

Membership Number: 198530
UDIN: 25198530BMOFZH8848

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Mar 31, 2024

We have audited the accompanying Standalone Financial Statements of SILVERLINE TECHNOLOGIES LIMITED ("the Company"), which comprise the Balance Sheet as at March 31, 2024, the Statement of Profit & Loss (including Other Comprehensive Income), the Statement of Changes in Equity and Statement of Cash Flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information (hereinafter referred to as "Standalone Financial Statements").

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 (" the Act") in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (In di an Accounting Standards) Rules , 20 15 , as amended, ("Ind AS") and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31,2024, the profit and total comprehensive income, changes in equity and its cash flows for the year ended on that date "except for the effects of the matter described in the Basis for Qualified Opinion section of our report"

Basis of Qualified Opinion

a) Sufficient and appropriate audit evidences with respect to the addition of '' 10,65 Crores to ''Supply Chain Services'' assets under Intelligible Fixed Assets of the Company have not been made available to us.

b) Confirmations of Sundry Debtors, Loans & Advances given and Sundry Creditors (including squired-up accounts during the year) have not made available to us.

c) Cancellation of Company''s registration under Goods & Service Tax Act, 2017 has not been restored back and the possible liabilities of GST on Company''s turnover is not determined and is not provided in the Books of Account.

Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act, and the Rules there under, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on the standalone financial statements.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the finrulcial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Information Other than the Standalone Financial Statements and Auditor''s Report Thereon

The Company''s Board of Directors is responsible for the preparation of the other information. The other information comprises the information included in the Board''s Report including Annexures to Board''s Report, but does not include the standalone financial statements and our auditor''s report thereon.

Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard

Management''s Responsibility for the Standalone Financial Statements

The Company''s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance, total comprehensive income, changes in equity and cash flows of the Company in accordance with the Ind AS and other accounting principles generally accepted in India. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the standalone financial statements, management is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The Board of Directors are responsible for overseeing the Company''s financial reporting process.

Auditor''s Responsibilities for the Audit of the Standalone Financial Statements

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

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also :

• Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls.

• Obtain an understanding of internal financial controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls system in place and the operating effectiveness of such controls.

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

• Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the standalone 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''s However, future events or conditions may cause the Company to cease to continue as a going concern

• Evaluate the overall presentation, structure standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the financial statements.

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

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

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

Report on Other Legal and Regulatory Requirements

1. As required by section 143(3) of the Act, we further report that:

a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;

b) In our opinion proper books of account as required by law have been kept by the Company so far as appears from our examination of those books;

c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, Statement of Changes in Equity and the Statement of Cash Flows dealt with by this Report are in agreement with the relevant books of account;

d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;

e) On the basis of written representations as on March 31,2024, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2024, from being appointed as a director in terms of Section 164(2) of the Act;

f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in Annexure-B to this report;

g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 1 I of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:

i. The Company does not have any pending litigations which would impact its financial position; as such the question of commenting on disclosing impact of any such litigation in its Standalone Financial Statements does not arise;

ii. The Company did not have any long-term contracts including derivative contracts; as such the question of commenting on any material foreseeable losses thereon does not arise.

iii. There was no amount due to be transferred to the Investor Education and Protection Fund by the Company during the year ended March 31, 2024.

iv. a) The management has represented that, to the best of it''s knowledge and belief, other

than as disclosed in the notes to the accounts, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall:

• directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries")

• or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;

b) The management has represented, that, to the best of it''s knowledge and belief, other than as disclosed in the notes to the accounts, no funds have been received by the company from any person(s) or entity(ies), including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and the circumstances, nothing has come to their notice that has caused them to believe that the representations under sub-clause a) and b) contain any material mis-statement.

v. The Company has not declared or paid any dividend during the year and therefore provisions of Section 127 of the Act are not applicable.

vi. Based on our examination which included test checks, the company has used accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software. Further, during the course of our audit we did not come across any instance of audit trail feature being tampered with.

As proviso to Rule 3(1) of the Companies Accounts Rule 2014 is applicable from April 1, 2023, reporting under Rule I l(g) of the Companies (Audit and Auditors) Rules 2014 on preservation of audit trail as per the statutory requirements for record retention is not applicable for the financial year ended March 31, 2024.

h) With respect to the other matters to be included in the Auditor''s Report in accordance with the requirements of section 197(16) of the Act, as amended, in our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by the Company to its directors during the year is in accordance with the provisions of section 197 of the Act.

2. As required by the Companies (Auditor''s Report) Order, 2020 ("the Order") issued by the Central Government in terms of Section 143(11) of the Act, we give in "Annexure B" a statement on the matters specified in paragraphs 3 and 4 of the Order.

For JMT & ASSOCIATES

Chartered Accountants FRN No. 104167W Arun S Jain Partner M No.043161 UDIN: 24043161BKFEQD2677

Place: Mumbai

Date : 31st , May, 2024

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Jun 30, 2011

We have audited the attached Balance sheet of Silverline Technologies Ltd as at 30th June 2011, the Profit and Loss Account and the Cash Flow Statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the company's management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining on a test basis, evidence supporting the amounts and disclosures in the financial statement. An audit also includes assessing the accounting principles used and significant estimates made by the management as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

As required by the Companies (Auditor's Report) Order 2003, issued by the Department of Company Affairs on 12th June 2003 and as amended under Notification at 25th November 2004 in terms of sub-section (4A) of section 227 of the Companies Act, 1956, we enclose in the annexure a statement on the matters specified in paragraph 4 and 5 of the said Order.

Further to the comments contained in the annexure mentioned in Para 3 above, we state the following:

a. We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purposes of our audit,

b. In our opinion, proper books of account as required by law have been kept by the company so far as appears from our examination of the books of accounts.

c. The Balance sheet and Profit and Loss Account dealt with by this report are in agreement with the books of account,

d. In our opinion, the Balance sheet and Profit and loss account dealt with by this report comply with the accounting

standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 subject to

Not provisioning of deferred tax liability under AS-22 relating to impairment of assets particularly debtors under AS-28 and AS-15 relating to non provision of retirement benefits

e. On the basis of written representations received from the directors, as on 30th June 2011, and taken on record by the Board of Directors, we report that none of the directors are disqualified as on 30th June 2011 from being appointed as a director in terms of clause (g) of sub-section (I) of section 274 of the Companies Act, 1956.

f. In our opinion and to the best of our information and according to the explanation given to us, the said accounts read together with the qualification in para

(d) above give a true and fair view with respect to the following

a) In the case of Balance Sheet, of the state of affairs of the company as at 30th June 2011,

b) In the case of the Profit and Loss account of the Profit for the year ended on that date.

c) In the case of the Cash Flow Statement, of the cash flow for the year ended on that date.

i) a) The Company has maintained proper records, showing full particulars including quantitative details and situation of fixed assets.

b) Most of the fixed assets of the company have been physically verified.

c) None of the fixed assets have been revalued during the year.

ii) a) There is no physical stock.

b) As the company does not have any stock, question of physical verification does not arise.

c) As no stock has been held by the company clause does not apply.

iii) The Company has maintained register under section 301 but not updated the register.

iv) In our opinion, and according to the information and explanations given to us, the company has adequate internal control procedures commensurate with the size of the company and the nature of its business with regards to purchase of fixed assets and for the sale of goods.

v) All particulars required for contract/ arrangements

a) Referred to Sec 301of the Companies Act of 1956, have been entered.

b) No any transaction entered in pursuance of contracts during the year

vi) The Company has not accepted any Fixed Deposits from the public during the year and therefore, the question of compliance with the directives issued by the Reserve Bank of India and the provisions of section 58A and 58AA or any other relevant provisions of the Companies Act, 1956 and the rules framed there under does not arise.

vii) In our opinion, the Company does not have an adequate Internal Audit System commensurate with its size and nature of its business. However the company is in the process of appointing an internal auditor for the ensuing financial year.

viii) The Central Government has not prescribed the maintenance of cost accounting records by the company under section 209(1)(d) of the Act for any of its product.

ix) According to the information and explanations given to us, the company is reasonably regular in payment of Provident fund and ESI; however there have been delays. TDS has not been deducted during the year and the effect there on is not quantified. . Hence we are unable to determine the undisputed amounts outstanding beyond six months. We have obtained management representation that there are no undisputed amounts payable in respect of Wealth tax, Sales tax, Customs duty & Excise duty outstanding as at 30th June 2011 for a period exceeding 6 months from the day they became payable. In the absence of information we are unable to check Service tax calculation, remittances and filing of returns. Also we unable to comment on the outcome of any proceedings of enquiries / adjudications pending before statutory authorities like Ministries, Income tax tribunals etc to the extent we are not informed of the same.

x) Based on the management representation we report that

there is a disputed amount of Rs 64 Crores payable in respect of Income Tax as at 30th June 2011. The status of earlier assessments has not been updated and we are also not able to comment on the outcome of Income Tax proceedings. Also the current year tax returns have not been filed and paid.

xi) At the end of the financial year, the accumulated losses of the Company are not more than 50% of its Net Worth. However, our calculation does not take into account the effect of qualifications in the audit report. The company has not incurred cash losses during this year and in the immediately preceding previous year.

xii) The company has not defaulted in repayment of dues to a financial institution or bank or debenture holders.

xiii) No loans or advances have been granted by the Company against pledge of Shares and Debentures and other securities.

xiv) The Company is not a chit fund or a nidhi mutual benefit fund/society.

xv) The Company is not dealing in or trading in Shares, Securities, Debentures and other instruments.

xvi) According to the information and explanation given to us, the Company has not given any Corporate Guarantee during the year.

xvii) The Company has not received any Term Loan during the year and therefore the question of application for the purpose for which they were obtained does not arise.

xviii)According to the information and explanations give to us and on an overall examination of the balance sheet of the company, we report that no funds raised on short-term basis have been used for long-term investment.

xix) During the year the Company has not made any preferential allotment to parties and companies covered in the register maintained under Section 301 of the companies act, 1956.

xx) The Company has not issued any debentures during the year and therefore the question of creation of security or charge does not arise.

xxi) During the year, the Company has not raised any money by way of public issue and the question of disclosing the end use of money by the management does not arise.

xxii) According to the information and explanations give to us, no fraud on or by the Company was noticed or reported during the course of our audit.

For CNGSN & ASSOCIATES Chartered Accountants

C N GANGADARAN Partner

Chennai, 29th February 2012 Memb.No.11205 F.R.No.004915S

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Jun 30, 2010

We have audited the attached Balance sheet of Silverline Technologies Ltd as at 30th June 2010, the Profit and Loss Account and the Cash Flow Statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the companys management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining on a test basis, evidence supporting the amounts and disclosures in the financial statement. An audit also includes assessing the accounting principles used and significant estimates made by the management as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

As required by the Companies (Auditors Report) Order 2003, issued by the Department of Company Affairs on 12th June 2003 and as amended under Notification dt 25th November 2004 in terms of sub-section (4A) of section 227 of the Companies Act, 1956, we enclose in the annexure a statement on the matters specified in paragraph 4 and 5 of the said Order.

Further to the comments contained in the annexure mentioned in Para 3 above, we state the following:

a. We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purposes of our audit,

b. In our opinion, proper books of account as required by law have been kept by the company so far as appears from our examination of the books of accounts.

c. The Balance sheet and Profit and Loss Account dealt with by this report are in agreement with the books of account,

d. On the basis of written representations received from the directors, as on 30th June 2010, and taken on record by the Board of Directors, we report that none of the directors are disqualified as on 30th June 2010 from being appointed as a director in terms of clause (g) of sub-section (I) of section 274 of the Companies Act, 1956.

e. In our opinion and to the best of our information and according to the explanation given to us, the said accounts give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view are in conformity with the accounting principles generally accepted in India:

a) In the case of Balance Sheet, of the state of affairs of the company as at 30th June 2010,

b) In the case of the Profit and Loss account of the Profit for the year ended on that date.

c) In the case of the Cash Flow Statement, of the cash flow for the year ended on that date.

Annexure referred to in paragraph 3 of the report of even date of the Auditors to the Members of Silverline Techonologies Limited on the accounts for the year ended 30th June 2010.

i) a) The Company has maintained proper records, showing full particulars including quantitative details and situation of fixed assets.

b) Most of the fixed assets of the company have been physically verified.

c) None of the fixed assets have been revalued during the year.

ii) a) There is no physical stock.

b) As the company does not have any stock, question of physical verification does not arise.

c) As no stock has been held by the company clause does not apply.

iii) The Company has maintained register under section 301 but not updated the register.

iv) In our opinion, and according to the information and explanations given to us, the company has adequate internal control procedures commensurate with the size of the company and the nature of its business with regards to purchase of fixed assets and for the sale of goods.

v) All particulars required for contract/ arrangements

a) Referred to Sec 301 of the Companies Act of 1956, have been entered.

b) All transactions made in pursuance of such contracts / arrangements have been made at prices which are reasonable having regard to the prevailing market prices at the relevant rates.

vi) The Company has not accepted any Fixed Deposits from the public during the year and therefore, the question of compliance with the directives issued by the Reserve Bank of India and the provisions of section 58A and 58AA or any other relevant provisions of the Companies Act, 1956 and the rules framed there under does not arise.

vii) In our opinion, the Company have an adequate Internal Audit System commensurate with its size and nature of its business. However the company is in the process of appointing an internal auditor for the ensuing financial year.

viii) The Central Government has not prescribed the maintenance of cost accounting records by the company under section 209(1) (d) of the Act for any of its product.

ix) According to the information and explanations given to us, the company is reasonably regular in payment of Provident fund and ESI; however there have been delays. TDS has not been deducted during the year and the effect there on is not quantified.

Hence we are unable to determine the undisputed amounts outstanding beyond six months. We have obtained management representation that there are no undisputed amounts payable in respect of Wealth tax, Sales tax, Customs duty & Excise duty outstanding as at 30th June 2010 for a period exceeding 6 months from the day they became payable. In the absence of information we are unable to check Service tax calculation, remittances and filing of returns. Also we unable to comment on the outcome of any proceedings of enquiries / adjudications pending before statutory authorities like Ministries, Income tax tribunals etc to the extent we are not informed of the same.

x) Based on the management representation we report that there is a disputed amount of Rs 64 Crores payable in respect of Income Tax as at 30th June 2010. The status of earlier assessments has not been updated and we are also not able to comment on the outcome of Income Tax proceedings.

xi) At the end of the financial year, the accumulated losses of the Company are not more than 50% of its Net Worth. The company has not incurred cash losses during this year and in the immediately preceding previous year.

xii) The company has not defaulted in repayment of dues to a financial institution or bank or debenture holders.

xiii) No loans or advances have been granted by the Company against pledge of Shares and Debentures and other securities.

xiv) The Company is not a chit fund or a nidhi mutual benefit fund/society.

xv) The Company is not dealing in or trading in Shares, Securities, Debentures and other instruments.

xvi) According to the information and explanation given to us, the Company has not given any Corporate Guarantee during the year.

xvii) The Company has not received any Term Loan during the year and therefore the question of application for the purpose for which they were obtained does not arise.

xviii) According to the information and explanations give to us and on an overall examination of the balance sheet of the company, we report that no funds raised on short-term basis have been used for long-term investment.

xix) During the year the Company has not made any preferential allotment to parties and companies covered in the register maintained under Section 301 of the companies act, 1956.

xx) The Company has not issued any debentures during the year and therefore the question of creation of security or charge does not arise.

xxi) During the year, the Company has not raised any money by way of public issue and the question of disclosing the end use of money by the management does not arise.

xxii) According to the information and explanations give to us, no fraud on or by the Company was noticed or reported during the course of our audit.

For M/s CNGSN & ASSOCIATES

Chartered Accountants

Place : Chennai C. N. Gangadharan

Date : 29th January 2011 Partner

Memb.No.11205