MIRA
INFORM REPORT
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Report Date : |
06.10.2007 |
IDENTIFICATION DETAILS
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Name : |
SILVERLINE TECHNOLOGIES LIMITED |
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Formerly Known As : |
SILVERLINE
INDUSTRIES LIMITED |
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Registered Office : |
1405/6, Maker Chamber V, Nariman
Point, Mumbai – 400 021, |
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Country : |
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Financials (as on) : |
30.06.2006 |
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Date of Incorporation : |
13.04.1992 |
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Com. Reg. No.: |
66360 |
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CIN No.: [Company
Identification No.] |
U99999MH1992PTC066360 |
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Legal Form : |
It is a public limited liability company. The company's shares are listed on the
Stock Exchanges. |
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Line of Business : |
Development of software products. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 4300000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and reputed software
development company having satisfactory track records. General financial position is
satisfactory. Payments are reported as
slow but correct. Your proposed business dealings of US $ 100000 can be
considered against D/P terms. |
LOCATIONS
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Registered Office : |
1405/6, Maker Chamber V,
Nariman Point, Mumbai – 400 021, |
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Tel. No.: |
91-22-8291950 / 0447 / 0322 |
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Fax No.: |
91-22-8290199 |
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E-Mail : |
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Website : |
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Branches : |
Located at Mumbai Thane Chennai |
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Overseas Office : |
Located at |
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Delivery Centres : |
Located at Mumbai, |
DIRECTORS
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Name : |
Mr. Ravi Subramanian |
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Designation : |
Chairman |
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Name : |
Mr. Krishnakumar Subramanian |
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Designation : |
Vice Chairman |
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Name : |
Mr. K. Kulathu Subramanian |
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Designation : |
Wholetime Director |
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Name : |
Mr. Arjan R. Daswani |
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Designation : |
Director |
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Name : |
Mr. S. V. Mony |
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Designation : |
Director |
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Name : |
Mr. Shankar Iyer |
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Designation : |
Director |
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Name : |
Mr. V. Panchapakesan |
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Designation : |
Director |
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Name : |
Mr. George R. Zoffinger |
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Designation : |
Director |
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Name : |
Mr. Pejavar Murari |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Uday L. Khona |
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Designation : |
Company Secretary |
BUSINESS DETAILS
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Line of Business : |
Development of software products. |
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Products : |
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Exports : |
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Countries : |
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GENERAL INFORMATION
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Customers : |
Ø
Ø
Ford Motor Company Ø
General Motors Ø
Subaru of Ø
Volkswagen of Ø
First Data Ø
J P Morgan Ø
Goldman Sachs Ø
First Ø
ADP Ø
Deutsche Bank Ø
Fidelity Investments Ø
Credit Ø
AMP Society Ø
ANZ Banking Group of Ø
Citibank NA Ø
Commercial Ø
Horwath & Horwath Ø
Jardine Insurance Brokers Limited Ø
Prudential Assurance Company Ø
Prudential Unit Trust Managers of Ø
Sun Alliance Life Limited Ø
Toyota Finance Limited Ø
Westpac Banking Corporation Ø
Merck Ø
Pfizer Ø
Bristol-Myers Squibb Company Ø
Dade Behring Ø
Block Drug Company Ø
Sunquest / Diagnostix.com Ø
International Masters Publishers Ø
Intermountain Health Care Ø
3COM Corporation Ø
Ø
Ø
Cablevision Ø
Lucent Technologies Hewlett Packard |
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No. of Employees : |
900 |
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Bankers : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Deloitte Haskins & Sells Chartered Accountants |
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Associates/Subsidiaries : |
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CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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250000000 |
Equity Shares |
Rs.
10/- each |
Rs.
2500.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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249850000 |
Equity Shares |
Rs. 10/-
each |
Rs. 2498.500
Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
30.06.2006 |
30.06.2005 |
30.06.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
2498.500 |
2498.500 |
2498.500 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
[1409.500] |
[1591.600] |
[1508.000] |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
1089.000 |
906.900 |
990.500 |
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LOAN FUNDS |
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1] Secured Loans |
201.300 |
642.500 |
607.300 |
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2] Unsecured Loans |
48.100 |
48.100 |
45.500 |
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TOTAL BORROWING |
249.400 |
690.600 |
652.800 |
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DEFERRED TAX LIABILITIES |
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TOTAL |
1338.400 |
1597.500 |
1643.300 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
394.700 |
681.400 |
725.400 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
820.000 |
820.000 |
820.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
0.000
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0.000 |
0.000 |
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Sundry Debtors |
22.400
|
16.700 |
30.200 |
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Cash & Bank Balances |
18.200
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18.200 |
18.200 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
314.700
|
295.000 |
287.800 |
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Total
Current Assets |
355.300
|
329.900 |
336.200 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
231.200
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234.300 |
234.300 |
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Provisions |
6.200
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6.300 |
11.800 |
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Total
Current Liabilities |
237.400
|
240.600 |
246.100 |
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Net Current Assets |
117.900
|
89.300 |
90.100 |
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MISCELLANEOUS EXPENSES |
5.800 |
6.800 |
7.800 |
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TOTAL |
1338.400 |
1597.500 |
1643.300 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
30.06.2006 |
30.06.2005 |
30.06.2004 |
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Sales Turnover |
25.500 |
19.300 |
137.300 |
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Other Income |
382.500 |
0.300 |
0.200 |
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Total Income |
408.000 |
19.600 |
137.500 |
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Profit/(Loss) Before Tax |
327.100 |
[83.600] |
[616.200] |
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Provision for Taxation |
0.000 |
0.000 |
0.000 |
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Profit/(Loss) After Tax |
327.100 |
[83.600] |
[616.200] |
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Expenditures : |
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Power
& Fuel Cost |
0.800 |
2.200 |
4.000 |
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Other
Manufacturing Expenses |
9.600 |
3.200 |
16.500 |
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Employee
Cost |
4.800 |
5.300 |
54.700 |
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Selling
and Administration Expenses |
17.200 |
9.000 |
22.800 |
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Miscellaneous
Expenses |
1.600 |
1.600 |
542.200 |
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Interest
& Financial Charges |
3.000 |
37.800 |
35.200 |
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Depreciation
|
43.900 |
44.100 |
78.300 |
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Total Expenditure |
80.900 |
103.200 |
753.700 |
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SUMMARISED RESULTS
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PARTICULARS |
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30.06.2007 |
|
Type |
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Full
Year |
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Sales
Turnover |
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726.600 |
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Other
Income |
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|
233.100 |
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Total
Income |
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959.700 |
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Total
Expenditure |
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583.800 |
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Operating
Profit |
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|
375.900 |
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Interest |
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|
5.900 |
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Gross
Profit |
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|
370.000 |
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Depreciation |
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|
48.300 |
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Tax |
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|
6.600 |
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Reported
PAT |
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|
315.100 |
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Dividend
(%) |
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|
0.000 |
KEY RATIOS
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PARTICULARS |
30.06.2006 |
30.06.2005 |
30.06.2004 |
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Debt-Equity
Ratio |
0.47 |
0.71 |
0.86 |
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Long
Term Debt-Equity Ratio |
0.34 |
0.58 |
0.67 |
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Current
Ratio |
0.94 |
0.90 |
0.85 |
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TURNOVER
RATIOS |
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Fixed
Assets |
0.02 |
0.02 |
0.09 |
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Inventory |
0.00 |
0.00 |
0.00 |
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Debtors |
1.30 |
0.82 |
8.75 |
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Interest
Cover Ratio |
[4.47] |
[1.21] |
[1.48] |
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Operating
Profit Margin(%) |
119.61 |
[8.81] |
19.16 |
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Profit
Before Interest And Tax Margin(%) |
[52.55] |
[237.31] |
[37.87] |
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Cash
Profit Margin(%) |
107.84 |
[204.66] |
[6.48] |
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Adjusted
Net Profit Margin(%) |
[64.31] |
[433.16] |
[63.51] |
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Return
On Capital Employed(%) |
[0.18] |
0.00 |
0.00 |
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Return
On Net Worth(%) |
[0.24] |
0.00 |
0.00 |
LOCAL AGENCY FURTHER INFORMATION
History
Silverline Technologies, previously known as Silverline
Industries, is an international software development and integration services
firm, with over 1,800 software professionals world-wide.
Silverline provides a comprehensive set of eBusiness consulting and IT
services, including strategic consulting, creative design, technology
integration and implementation, as well as management and maintenance of
Internet and legacy applications.
Silverline focuses primarily on Global 2000 clients in key industry sectors,
such as automotive/discrete manufacturing, financial services,
healthcare/insurance, technology and telecommunications. The Company also has
extensive experience in technologies such as mobile and wireless applications,
ePayments and enterprise information portals, as well as in business processes
such as customer relationship management (CRM), eProcurement and online
marketplaces, channel management and employee enablement.
Silverline delivers its services through a global network of software
development centers. At the heart of the network are core offshore centers in
Chennai,
Silverline Technologies, Inc., a subsidiary of Silverline Technologies Limited
announced on 20th Sep. 2002 that it has received an offer from Cognizant
Technology Solutions US Corporation to acquire certain assets of a business
unit of Silverline Technologies Inc. that provides information technology
services to a fortune 100 financial services company.
This business unit was acquired as part of the acquisition of SeraNova, Inc.,
an eBusiness consulting services company that was acquired by Silverline in
March 2001.
Cognizant's proposal is non-binding and is subject to, among other things,
satisfactory completion of due diligence, negotiation and execution of mutually
satisfactory definitive agreements and the approval of Cognizant's Board of
Directors. The proposed transaction is part of Silverline's overall financial
restructuring plan.
Earlier, Silverline Technologies appointed Dr.Nirmal Jain as the new Vice
Chairman and CEO for the company. The company also announced the reconstitution
of the board wherein Dr. Nirmal Jain and Mr. Prem Rajani have been added while
replacing Mr.Kulathu Subramanian, Mr.S.V Mony, Mr.George Zoffinger and
Mr.Shankar Iyer. This announcement is in line with its earlier decision to
shift operational management function to
Silverline plans an expansion program to address emerging opportunities in the
areas of IT Software Solutions and Information Technology Enabled Services. New
initiatives in the areas of Business Process Outsourcing (BPO), Enterprise
Solutions among others are planned in the immediate future through Business
Combinations, Joint Ventures, strategic alliances etc with established players
in the international arena.
Silverline had made a public offering in the
Silverline was the first Indian software services company to use its American
Depository Receipt (ADR) issue proceeds for a high-value acquisition in the
Silverline has a technical alliance partnership with BEA for e-business
infrastructure. The company has also tied up with Siebel Systems, a leading
provider of eBusiness applications and software, as a consulting and
implementation partner. Clarify, a Nortel Networks company is a consulting
partner of Silverline for services in customer relationship and virtual
Internet marketplaces. Silverline is also a developer partner of Sun
Microsystems.
In line with company's business expansion plan in US, the company had issued
45,00,000 ADRs for acquisition of CTC Corp and its subsidiaries.
The company had raised its Authorised Share Capital by Rs.250 Millions during
the year 2002.Also the paid up Equity of the company has been increased by
Rs.222 Millions and as a result of this increase in Paid up Equity, the total
Paid up Equity stood at Rs.1078.500 Millions at the end of financial year 2002.
BUSINESS
The company is engaged in development of software products.
Subject is a software services firm, has a wide array of
activities including software projects, services and products, education and
training and distribution of software products.
The company is increasingly concentrating on complete
lifecycle projects and projects in areas including web based applications, CRM,
e-Commerce, application development, etc.
It is also concentrating on increasing the off-shore mix.
The company has entered into an alliance with Siebel
Systems, the world's largest supplier of web based CRM software, as an
implementation partner and with Platinum Technology, a leader in enterprise
infrastructure software.
The company's business include the following :
The company does on-site consultancy as well as offshore
software development projects. It does projects in the areas of :
e-Business : The
company focuses on web-enabling of the company’s existing legacy systems. It
also develops custom internet software solutions and internet-based components
which can be integrated with the clients existing software applications.
Customer
Relationship Management : The company is a Certified Siebel
Consulting Partner in the
Application
Development : The company develops new application for its clients
according to the client’s need in a vertical domain as per the technology
chosen by the client. The company uses a lot of reusable software components to
save time / cost during development and deployment of any software application.
Application
Migration and Maintenance : The company helps its clients to
migrate existing software applications from older platforms to newer ones. A
large portion of the company’s business comes from this segment.
It also includes the following products :
HOST
(Hotel Open System Technology) a software solution for front offices
of hotels. The package is installed at Taj group, Hyatt, Ashoka, Centaur etc.
Knowledge
master : This package generates question papers to test a target
audience and provide online evaluations.
Silverline
Manufacturing : is a
manufacturing planning system.
The company's training division called Silverline Institute
of Software Technology (SIST) has branches in Thane near Mumbai and Chennai.
The company has strategic
alliances with the following
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Ø
Actuate |
Ø
Aether |
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Ø
AIT |
Ø
BEA |
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Ø
Concur |
Ø
Corechange |
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Ø
Crosswords |
Ø
Clarify |
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Ø
Dharma |
Ø
Epicentric |
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Ø
Firepond |
Ø
Information Builders |
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Ø
Intel |
Ø
Microsoft |
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Ø
Oblix |
Ø
Pivotal |
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Ø
Plumtree |
Ø
SEEC |
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Ø
SIEBEL |
Ø
Sun Microsystems |
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Ø
See Beyond |
Ø
Versata |
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Ø
Vignette |
Ø
Webmethods |
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Ø
Netscape |
Ø
Novell |
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Ø
SCO |
Ø
Quest |
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Ø
Arrow Electronics |
Ø
Agilent Technologies |
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Ø
Philippine Long Distance Telecom
Company |
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Subject has been accredited with
ISO 9001 Certification.
The company's fixed assets of
important value include freehold & leasehold land, buildings, office
premises, computer equipments, furniture & fixtures, office equipments,
electrical fittings and motor vehicles.
As Per Website
Profile
Silverline is a global BPO and IT
Consulting Company that started in 1992 in
- IT Development & Systems Integration
- Technical Support
- Customer Care
- Back-office Shared Services
- Market Entry Services
- Animation and Media Services
Silverline situates their operations in
Management
Vern Sheppard, SVP Technical Service
Management
Bharat Hansraj, SVP Business Service
Management
Ashwani Narula, SVP, IT Systems
Integration
Anil Suri, Corporate Financial Controller,
Michael Bergman, Legal Counsel
V Venkatraghavan, Vice President - Finance &
Company Secretary
Press
Release
Silverline equity shareholders to
approve Scheme of Arrangement
07/08/2007
Silverline Technologies Ltd has
informed BSE that pursuant to the Order made by the High Court of Judicature at
Bombay, a meeting of the equity shareholders of the Company will be held on
August 11, 2007, for the purpose of considering and if thought fit, approving,
with or without modification the arrangement embodied in the Scheme of
Arrangement between the Company and Silverline Animation Technologies Ltd and
their respective shareholders.
Silverline has informed BSE that an
Extra Ordinary General Meeting will be held
06/08/2007
Silverline Technologies Ltd has
informed BSE that an Extra Ordinary General Meeting (EGM) of the Members of the
Company will be held on August 11, 2007, inter alia, to issue, offer and allot,
in domestic / international offering any securities including Global Depository
Receipts and / or American Depository Receipts convertible at the option of the
Company and / or any instrument representing convertible securities such as
foreign currency convertible bonds Foreign Currency, (FCCBs), convertible into
equity shares / preference shares ("Securities"), to be subscribed by
Foreign investors / institutions and / or corporate bodies, mutual funds,
banks, insurance Companies, trusts and / or individual whether or not such
person / entities / investors are Member of the Company, whether in Indian
currency such issue and allotment shall be made at such time or times in one or
more tranche or tranches, at par or at such price or prices and on such terms and
conditions as the Board may, in its absolute discretion thinks fit, in
consultation with the Lead Managers, underwriters, Advisors or other
intermediaries; provided however that the amount to be raised through issue of
securities not exceeding US$ 30 Million, subject to necessary provisions &
approvals.
Silverline Technologies Ltd has
reviewed the business and other matter in the agenda.
17/07/2007
Silverline Technologies Ltd has
informed BSE that the Board of Directors of the Company at its meeting held on
July 17, 2007, has reviewed the business and other matter in the agenda. Due to
paucity of time the Board of Directors decided that they would meet on July 20,
2007 to take on record all the matter as per the Agenda.
The Board also has taken note of the
Company becoming debt free
20/07/2007
Silverline Technologies Ltd has
informed BSE that the Board of Directors of the Company at its meeting held on
July 20, 2007, inter alia, have considered the following: 1. The Board noted
the first time turn around performance of the company for the year 2006-07. 2.
The Board also has taken note of the Company becoming debt free. 3. The Board
also has taken note of the on-going capital reduction and demerger exercise for
which the company has got the in-principle clearance of the exchange and the
company has proceeded further with the filing of demerger and capital reduction
petition with the honorable high court of Mumbai for which the Court Convened
EGM is scheduled to be held on August 11, 2007. 4. The Board also approved
rising of money through FCCB for the purpose of corporate structuring and
further business strengthening in terms of acquisitions and broad basing of
working capital needs. 5. The Board was informed about the proposed acquisition
targets for which the board has taken note and requested Mr. Ravi Subramanian
to engage due diligence agencies and negotiate and inform the board about the
progress. 6. The company has short listed 3 companies for the purpose of
acquisitions in
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject are
derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals have
been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.39.49 |
|
|
1 |
Rs.80.41 |
|
Euro |
1 |
Rs.55.76 |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|