The board of NASDAQ listed Sify Technologies Ltd has approved the transfer of the company’s "non-telecom" business to a wholly owned subsidiary called Sify Networks Private Limited. The slump sale to the subsidiary is for a consideration of Rs. 450 million. The non-telecom business comprises of: -- ELearning business: involves development of custom e-learning content services, content management etc, delivered as web based training or instructor led training programs. This business has been valued at Rs 306 million, including working capital. -- Software Development Team Associates and Products includes a software and development segment valued at Rs. 4.5 crores, with products for "ITEST, SLEM, BEACON and DMS"; Forum, for forward supply chain management, valued at Rs 65.2 million; HR assets have been valued at Rs. The HR assets have been valued based on cost to maturity method. Cost of development of the Human Capital to be transferred forms the basis and the value of the HR assets is Rs. 38.4 million. It appears that Sify may want to build upon its E-Learning business separately, and separate it from its portals, access and enterprise business. In FY09, Sify reported a Rs.49.19 million or 19.14 % increase in the revenue from their E-learning services. Access and Consumer Business Performance Legal Expenses: Sify's legal expenses increased by Rs. 130.2 million due to a one time payment in connection with the pending litigation with Yahoo. In the annual report filing from Sify, the company has said that revenue from Consumer One services, which include both its Internet Access…
