Exhibit 2
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Unaudited Financial Results (Provisional) for Silverline Technologies Limited
for the quarter ended December 31, 2001 in Indian Rupees.
SILVERLINE TECHNOLOGIES LTD
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Regd Office : 1405 Maker Chamber V, Nariman Point, Mumbai 400 021 (Rs. In Lacs)
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Unaudited financial results (Provisional) for the quarter ended December 31 , 2001
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Quarter ended Nine months ended Year ended
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31.12.2001 31.12.2000 31.12.2001 31.12.2000 31.03.2001
(Audited)
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1 Net sales 4,044.63 7,491.50 14,027.13 21,167.06 27,271.81
2 Other income 107.94 800.34 956.28 3,059.71 3,663.98
3 Total income 4,152.57 8,291.84 14,983.41 24,226.77 30,935.79
4 Staff cost 608.81 802.41 2,074.78 2,113.11 2,829.14
5 Software development expenses 1,622.19 3,097.37 6,022.60 8,555.96 11,267.47
6 Other expenditure 406.00 604.56 1,600.63 1,821.63 2,271.49
7 Total expenditure 2,637.00 4,504.34 9,698.01 12,490.70 16,368.10
8 Operating profits (PBDIT) 1,515.57 3,787.50 5,285.40 11,736.07 14,567.69
9 Finance charges 38.25 23.99 87.48 85.10 95.77
10 Depreciation 300.07 260.61 877.76 744.17 1,025.40
11 Profit before tax 1,177.25 3,502.90 4,320.16 10,906.80 13,446.52
12 Provision for taxation - - 65.00 300.00
13 Net Profit after tax 1,177.25 3,502.90 4,320.16 14,409.70 13,146.52
14 Paid-up equity share capital 8,565.49 7,320.00 8,565.49 7,320.00 8,565.49
15 Reserves excluding revaluation reserves 111,380.03
16 Earnings per share (EPS) in Rs .- Basic 1.37 5.07 5.04 15.68 18.22
- Diluted 1.37 4.79 5.04 14.81 15.35
Segment wise Revenue and Results (unaudited)
(Rs. In Lacs)
Particulars Quarter Ended Nine Months ended
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31.12.2001 31.12.2001
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Segment Revenue of Project and Services
E-Business Solutions 3,739.17 13,216.66
Main Frame 97.71 431.69
E-payments and CRM 159.49 159.49
Training and others 48.26 219.28
Total 4,044.63 14,027.13
Less : Inter Segment Revenue - -
Net Sales from Operations 4,044.63 14,027.13
Segment Profit/(loss) of Project and Services
E-Business Solutions 1,080.01 3,428.79
Main Frame 40.71 171.69
E-payments and CRM 13.49 9.49
Training and others (26.65) (158.62)
Total 1,107.56 3,451.35
Add:
Other Income including Interest / net of finance charges 69.69 868.81
Profit Before Tax 1,177.25 4,320.16
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Notes:-
1 The above results have been approved and taken on record by the Board
of Directors at their meeting held on January 31, 2002.
2 Other income includes Exchange loss from operations of Rs.12.57 lacs for
the quarter (exchange gain during the corresponding quarter of the
previous year Rs.187.04 lacs) due to fluctuations in exchange rates.
3 In terms of Guideline for Preferential Allotment of shares issued
by SEBI on August 4, 1994 (the said guideline) the company in
January 2000, made a preferential allotment of 2 million warrants
to "Silverline Group of Companies Employee Welfare Trust" (the trust),
giving an option to apply for equity shares, on a one to one basis,
at a price of Rs. 365 per share
The company had advanced a sum of Rs. 7,30,00,000 to the trust which
was paid to the company as application money by the trust, being 10%
contribution towards the warrants.
In view of the depressed capital markets and industry conditions, options
on the warrants could not be exercised by the trust within the time limit
specified by SEBI in the said guidelines. The company, at the request of
the trust, has approached SEBI seeking an extension upto July 11, 2002 for
the trust to exercise its option on the said warrants.
4 In line with the amendment to the listing agreement as directed by SEBI,
the company has adopted the Accounting Standard No 22 on Accounting for
Taxes on Income effective 1st April, 2001. The deferred tax liability
for the period April to December 2001 is estimated to be Rs. 1.87 lacs.
The appropriate accounting treatment for the deferred tax provision will
be carried out at the year end i.e. 31st March, 2002
5 As the fixed assets and services are used interchangeably between the
business segments, it is not practical to classify the total assets and
liabilities amongst the business segments.
6 The above financial presentation is in compliance with the disclosure
requirements of SEBI/Stock Exchanges. The company restates and reports
its financials separately to comply with US GAAP provisions
On behalf of the Board of Directors
for Silverline Technologies Ltd.
Place : Mumbai Krishnakumar Subramanian
Date : January 31, 2002. Vice Chairman