i-flex solutions limited CONSOLIDATED BALANCE SHEET AS AT SEPTEMBER 30, 2005 (All amounts in thousands of Indian rupees, unless otherwise stated)

Transcription

1 CONSOLIDATED BALANCE SHEET AS AT SEPTEMBER 30, 2005 September 30, 2005 March 31, 2005 SOURCES OF FUNDS SHAREHOLDERS' FUNDS Share capital 379, ,398 Reserves and surplus 11,846,836 11,078,505 UNSECURED LOANS 20,436 - DEFERRED TAX LIABILITY ,246,932 11,453,312 APPLICATION OF FUNDS FIXED ASSETS Cost 3,486,006 3,095,872 Less: Accumulated depreciation and amortisation 1,079, ,253 Net book value 2,406,334 2,215,619 Capital work-in-progress and advances 390,842 85,618 2,797,176 2,301,237 INVESTMENTS 59,954 60,905 DEFERRED TAX ASSET 9,802 - CURRENT ASSETS, LOANS AND ADVANCES Sundry debtors 4,465,051 3,790,998 Cash and bank balances 5,622,603 6,634,799 Other current assets 197, ,064 Loans and advances 1,905,889 1,153,934 12,191,484 11,754,795 Less: CURRENT LIABILITIES AND PROVISIONS Current liabilities 2,751,547 2,196,319 Provisions 59, ,306 2,811,484 2,663,625 NET CURRENT ASSETS 9,380,000 9,091,170 12,246,932 11,453,312

2 CONSOLIDATED STATEMENT OF PROFIT AND LOSS FOR THE SIX MONTHS PERIOD ENDED SEPTEMEBRE 30,2005 Three months Three months Six months Six months period ended period ended period ended period ended Septemeber 30,2005 Septemeber 30,2004 Septemeber 30,2005 Septemeber 30,2004 REVENUES 3,497,406 2,557,906 6,236,925 4,799,662 Cost of revenues (1,996,864) (1,409,875) (3,668,848) (2,555,633) GROSS PROFIT 1,500,542 1,148,031 2,568,077 2,244,029 Selling and marketing expenses (554,647) (316,322) (986,693) (658,953) General and administrative expenses (416,525) (268,485) (806,183) (507,556) Depreciation and amortisation (101,564) (73,866) (204,882) (129,626) INCOME FROM OPERATIONS 427, , , ,894 Reversal of dimunition in value of investment, net 5,528-5,528 - Loss on sale/conversion of investment (4,785) - (4,785) - Profit/(loss) on sale/conversion of investment ,804 Profit on equity investment 2, Interest income 72,325 67, , ,243 Other income/(expense) 30,388 (19,069) 6,184 4,567 INCOME BEFORE PROVISION FOR INCOME TAXES 533, , ,988 1,099,508 Provision for income taxes (150,690) (120,733) (190,300) (267,666) NET INCOME FOR THE PERIOD BRFORE PRIOR 383, , , ,842 Prior period item, net of taxes of Rs. 8,681(Refer note 10 (39,549) of schedule 17) NET INCOME 383, , , ,842 Earnings per share of Rs 5/- each (in Rs.) Basic Diluted Weighted average number of shares used in computing earnings per share Basic 75,202,807 74,764,303 75,066,219 74,755,302 Diluted 77,106,697 76,966,421 76,970,109 76,957,420

3 CONSOLIDATED STATEMENT OF CASH FLOW FOR THE PERIOD ENDED SEPTEMBER 30, 2005 Six months Period ended September 30, 2005 Six months period ended September 30, 2004 Cash flows from operating activities Income before provision for income taxes 724,988 1,099,508 Adjustments to reconcile income before provision for income taxes to cash provided by operating activities : Depreciation and amortisation 204, ,626 Profit/(Loss) on retirement/sale of fixed assets, net (125) 5,505 Share of associate profit (927) - (Profit)/Loss on sale/conversion of investments 4,785 (16,804) Reversal of provision for dimunition in value of investments (5,528) - Interest income (146,815) (130,243) Effect of exchange difference on cash and bank balances (6,034) (41,858) Finance charge on leased assets 1, Provision for doubtful debts (2,327) - 49,035 (52,917) 774,023 1,046,591 Changes in assets and liabilities Increase in sundry debtors and unbilled debtors (679,160) (824,011) Increase in loans and advances (611,878) (192,832) Increase in current liabilities and provisions 478,868 (812,169) 832,567 (184,276) Cash from operating activities (38,146) 862,315 Receipt of refund of previous assessment years - 10,539 Payment of domestic and foreign income taxes (418,699) (241,696) Net cash from operating activities (456,844) 631,158 Cash flows from investing activities Additions to fixed assets including capital work in progress (568,435) (212,584) Acquisition of Customer Contract from Trigyn Technologies Limited - (167,876) Acquisition of IPR from Capital Markets Company (38,555) - Investment in Castek Inc (36,200) Proceeds from sale of fixed assets 4,495 2,012 Bank fixed deposits having maturity of more than 90 days matured during the period 3,592,208 2,410,139 Bank fixed deposits having maturity of more than 90 days booked during the period (3,316,996) (3,997,447) Proceeds from sale of Investment in ESS 2,621 - Proceeds from maturity of JM High Liquidity Fund - 266,804 Interest received 128,148 87,642 Net cash (used in) investing activities (232,714) (1,611,310) Cash flows from financing activities Issue of Shares Against ESOP Scheme 273,208 8,626 Advance against equity shares to be issued under ESOP Scheme 1,075 3,114 Repayment of loan from ESPS Trust 65,000 22,000 Advance towards grant of options to IBM - 5,367 Advance towards grant of warrants to GE 40,441 - Payment of dividend and tax thereon (428,207) (295,167) Payment of lease obligations (5,465) (5,894) Net cash provided by financing activities (53,948) (261,954) Effect of exchange difference on cash and bank balances 6,034 41,858 Net decrease in cash and cash equivalents (737,472) (1,200,248) Cash and cash equivalents at beginning of the period 2,373,497 2,908,513 Cash and cash equivalents at end of the period (Note 1) 1,636,025 1,708,265

4 Note (1): Cash in hand 1,559 1,308 Funds in transit 38,964 51,629 Balances with scheduled banks: -Current accounts in foreign currency 113, ,273 -Deposit accounts 3,618,760 3,826,762 -Deposit amount of unutilised IPO funds 798, ,432 -Margin money deposit 1, ,388 -Other current accounts 249,875 97,582 -Unclaimed dividend amount 2,589 3,016 -Funds in Transit Balances with non-scheduled banks: -Current accounts in foreign currency 1, Current accounts of foreign subsidiaries 795, ,342 Total Cash and bank balances 5,622,603 6,176,202 Less: Bank deposits having maturity of more than 90 days (3,983,989) (4,464,921) Unclaimed dividend accounts (2,589) (3,016) 1,636,025 1,708,265

5 SEGMENT INFORMATION Business segments are defined as components of an enterprise about which separate financial information is available. This information is reviewed and evaluated regularly by the management, in deciding how to allocate resources and in assessing the performance. The Group is organised geographically and by business segment. For management purposes the Group is primarily organised on a worldwide basis into three business segments: a) Product licenses and related activities ('Products') and b) IT solutions and consulting services ('Services') c) Knowledge Processing Services ('KPO-Services') The business segments are the basis on which the Group reports its primary operational information to management. Product licenses and related activities segment deals with banking software products like the FLEXCUBE suite of products, Reveleus, Microbanker and Daybreak which cater to needs of corporate, retail and investment banking as well as treasury operations and datawarehousingrequirements. The related activities include enhancements, implementation and maintenance activities. IT solutions and consulting services comprise of bespoke software development, provision of computer software solutions and related consulting services arising from such activities. This segment is further sub-divided in the following subsegments i.e. Business intelligence, Customer relationship management, Brokerage, e-commerce, Internet services and IT and Business consulting. The activities of the joint venture are disclosed as a separate segment. Six months period ended September 30, 2005 Particulars Products IT Solutions KPO - Services Joint ventures Corporate Eliminations Total Revenues External revenue 2,896,403 3,239,599 95,819 5, ,236,925 Inter-segment revenue (911) - Total revenue 2,897,314 3,239,599 95,819 5,104 - (911) 6,236,925 Cost of revenues (1,286,122) (2,298,556) (84,170) (3,668,848) Gross profit 1,611, ,043 11,649 5,104 - (911) 2,568,077 Selling and marketing expenses (770,765) (182,370) (33,558) (986,693) General and administrative expenses (150,012) (144,270) (61,548) (4,722) (445,631) - (806,183) Depreciation and amortisation (68,220) (67,125) (9,482) (1,004) (59,051) - (204,882) Inter segment expense (911) Income from operations 622, ,278 (92,939) (1,533) (504,682) - 570,319 Profit / (Loss) on investment 1,670 Interest income 146,815 Other income Income before provision for income taxes 6, ,988 Provision for income taxes Net Income before Prior Period Items (190,300) 534,688 Prior Period Item Net of Taxes (39,549) Net income 495,139 Six months period ended September 30, 2004 Particulars Products IT Solutions Joint ventures Corporate Eliminations Total Revenues External revenue 2,546,404 2,250,870 2,675 - (287) 4,799,662 Inter-segment revenue (287) - Total revenue 2,546,691 2,250,870 2,675 - (574) 4,799,662 Cost of Revenues (900,328) (1,655,305) (2,555,633) Gross profit 1,646, ,565 2,675 - (574) 2,244,029 Selling and marketing expenses (543,498) (115,455) (658,953) General and administrative expenses (116,134) (105,493) (2,813) (283,116) (507,556) Depreciation and amortisation (50,576) (68,916) (1,536) (8,598) - (129,626) Inter segment expense - - (287) Income from operations 936, ,701 (1,961) (291,714) (287) 947,894 Profit on sale/conversion of investment 16,804 Interest income 130,243 Other income Income before provision for income taxes 4,567 1,099,508 Provision for income taxes (267,666) Net income 831,842 Segment revenue and expense: Revenue is generated through licensing of software products as well as by providing software solutions to the customers including consulting services and knowledge process outsourcing services.the expenses which are not directly attributable to a business segment are shown as corporate expenses. Geographical segments The following table shows the distribution of the group's consolidated sales by geographical market : Six months Six months Period ended Period ended Regions Sept 30,2005 % Sept 30,2004 % United States of America 3,149,120 50% 2,521,381 52% Asia Pacific 951,343 15% 712,898 15% Europe 1,158,774 19% 800,816 17% Middle East and Africa 877,091 14% 681,621 14% Latin America and Carribean 100,597 2% 82,946 2% 6,236, % 4,799, %