Outcome
Awaiting price reaction for this filing.
Silverline Technologies reported a sharp turnaround for FY25. Total revenue surged to Rs. 3,370.91 lakhs from just Rs. 172.21 lakhs in FY24. The company swung to a profit of Rs. 44.76 lakhs (EPS Rs. 0.029) compared to a loss of Rs. 42.70 lakhs last year. However, the statutory auditor (M/s S Parth & Co) issued a Qualified Opinion flagging issues like unsecured borrowings without interest documentation, pending GST credit reconciliation, non-classification of MSME payables, missing E-Way Bills and Delivery Challans, unconfirmed receivable balances, and absence of a Fixed Asset Register. Cash flow from operations was deeply negative at Rs. (9,386.68) lakhs. The Board also appointed a new Internal Auditor and Secretarial Auditor for FY26 onward.
While the headline numbers show strong revenue growth and a return to profitability, the qualified audit opinion and serious control/documentation lapses raise governance red flags. The deeply negative operating cash flow suggests the reported profit is not backed by real cash generation, which may concern investors. Shareholders should weigh the operational turnaround against these quality-of-earnings and compliance concerns.