Silverline Technologies Limited has resubmitted its financial results for the quarter and half year ended September 30, 2025, following regulatory queries from BSE regarding discrepancies between XBRL and PDF filings. The company's Managing Director and CFO Yakinkumar Bansilal Joshi responded to the exchange's concerns about mismatched data in earnings per share calculations and cash flow statements.

Regulatory Compliance Issues

BSE identified two primary discrepancies in the original submission. The exchange flagged incorrect figures for earnings per share related to discontinued operations in the XBRL filing and noted mismatches between reporting data in XBRL files compared to PDF submissions for the quarter ended September 2025. The company acknowledged these issues stemmed from clerical and typographical errors in both formats.

Financial Performance Highlights

The corrected financial results reveal strong operational performance for the reporting period. Revenue from operations reached ₹10,007.38 lakhs in Q2FY26, compared to ₹69.70 lakhs in the corresponding quarter of the previous year. For the half year ended September 30, 2025, total income stood at ₹20,016.06 lakhs against ₹145.37 lakhs in the previous year.

Audit Qualifications and Concerns

The statutory auditor S Parth & Co issued a qualified opinion on the financial results, highlighting several significant concerns. The audit report identifies five major areas requiring attention, including inadequate supporting documentation for sales and purchase transactions, absence of a fixed assets register, and unconfirmed trade receivables and payables.

Key audit qualifications include:

• Lack of satisfactory supporting documents for completeness of transactions pertaining to sales, purchases, and inventory valuation
• Missing fixed assets register affecting verification of depreciation and deferred tax calculations
• Unsecured loans without proper agreements or interest charges
• Unconfirmed trade payables without MSME classification compliance
• Trade receivables outstanding without debtor confirmations

Balance Sheet Position

The company's balance sheet as of September 30, 2025, shows total assets of ₹24,520.40 lakhs compared to ₹16,256.27 lakhs as of March 31, 2025. Trade receivables increased significantly to ₹10,888.35 lakhs from ₹3,842.11 lakhs, while trade payables rose to ₹5,434.33 lakhs from ₹260.06 lakhs.

Management Response

Management has acknowledged the auditor's observations and committed to improving internal control systems, documentation processes, and statutory compliances. The company stated that corrective actions including obtaining confirmations, preparing a fixed assets register, formalizing loan agreements, and strengthening financial record-keeping have been initiated and will be completed in a time-bound manner.

Silverline Technologies Limited has announced significant progress in the development and launch timeline of its proprietary AI-enabled web platform, 'Silver AI,' marking a strategic shift towards product-led technology capabilities.

Platform Development and Launch Timeline

The company has reached key milestones in bringing its AI platform to market. Following successful completion of internal testing and validation cycles, Silverline Technologies is preparing for a phased rollout approach.

About Silver AI Platform

Silver AI represents a comprehensive AI-native solution designed to enhance productivity and workflow assistance. The platform features an intuitive, conversational interface that supports both individual and organizational users across various productivity tasks.

Key Platform Characteristics:

• Web-based architecture enabling rapid adoption without specialized hardware requirements
• AI-native design focused on intelligent chat and productivity features
• Made-in-India product development approach
• Browser-integrated functionality for seamless user experience

Strategic Business Implications

The Silver AI launch represents a fundamental shift in Silverline Technologies' business model and market positioning. The company is transitioning from its traditional services-led approach toward AI-enabled product offerings, which supports enhanced scalability and recurring revenue opportunities.

Strategic Benefits:

• Transition to product-led growth model from services-based revenue
• Enhanced positioning in high-growth AI and digital transformation segments
• Alignment with favorable policy environment for AI and cloud infrastructure in India
• Long-term scalability through recurring revenue potential

Market Opportunity and Positioning

The beta rollout strategy enables structured user feedback collection and feature refinement ahead of full commercial deployment. This approach allows the company to optimize the platform based on real user interactions and requirements before the broader market launch.

The initiative positions Silverline Technologies to participate in the expanding AI and digital transformation market segments, supported by India's growing focus on AI development and cloud infrastructure advancement. The company believes Silver AI strengthens its positioning in next-generation technologies and enhances its long-term growth narrative.