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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K/A
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report: May 30, 2000
TELTRAN INTERNATIONAL GROUP, LTD.
--------------------------------------------------------------------------------
(Exact name of Registrant as specified in charter)
Delaware 0-25641 11-3172507
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(State or Other (Commission File No.) (IRS Employer
Jurisdiction of Identification No.)
Incorporation)
One Penn Plaza, Suite 4632, New York, New York 10119
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (212) 643-1283
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<PAGE>
Item 7 of the current report on Form 8-K, filed March 29, 2000 is hereby
amended to read in its entirety as follows:
Item 7. Financial Statements, Pro-Forma Information and Exhibits
(a) Financial Statements of Business Acquired
-----------------------------------------
Reference is made to index included with the Financial Statements
attached.
(b) Pro Forma Financial Information
-------------------------------
Reference is made to index included with the Financial Statements
attached.
(c) Exhibits
--------
10.23 Agreement for Sale and Purchase of Part of the Business of The Web
Factory Limited dated as of among The Web Factory Limited, Castlegate 133
Limited, Teltran International Group, Ltd. and Datatec Limited dated
March 15, 2000.
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---' 0396331
10 08 9.9
Cempony ttegiscrsilon 1%0. 03096331
THE WEB ,FAC'TORY LIMITED
Report and financial Staccmcnts 31 March 1999
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Dull & Taruehe
Calamnla Geolm
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10-08-99
D6 Wi , THE WED FACTORY LIMITED
.:.
REPORT AND FINANCIAL STATUNENTS 1999
CONTENTS page
Ofem and proresstenef lidviscrs !
djttttory' Ifport
Stataneat oldfroctor,c' reaponsipilitirs 3
Auditors' report e
Profit and loss account . s
BalI0G1 sheet 6
Notes to l11* ~eco~nts 7
<PAGE>
03096331
10-08-99
THE WED FACTORY UNILTE
O
TOWN
RF;YORT AND FItv \NCIAL STA?FvIFaN-rS 1999
OFFICERS AND PROFESSIONAL ADVISERS
D11tEC!`03iS
A Harvey .
Mrs P Morris
S ! Griffiihs
2 f'aerimrs. (appoinico 1
Dcccmbcr 1998)
J Ivloneanana IpDDOinced l
peCmba 1998)
J lomsrs (rappoinevd 1 !'~emCar 1998)
SECRETARY
A ! larvcy
REGISTERED OFFICE
APY Building .
$pfidWC11 Road
Piuisbvuae Industrisl fault Eass
No,.cW is
Sta.tt-or0rhllc
ST3 : RG
wtrDrrciRS
~cb:m do 1'ouchc
Chnered Accountants
Columbia Centre
Murkce SW a%
Braetd,ch
6erk~Alrc
RCY12 IPA
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RECEIVED DATE - 03l06 17:30100 FROM
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10 0 8 9 9
THE WEB FACTORY LIMITED
Ti~c_hE
DIRECTORS' RE-PORT
T7ro dlreuors preb:nt 1ficir annual rcpon and the audited
tirtinei'I ttrtamants for the year crrd.:d 71 Match 1999.
ACTIYITJItS The principal sctirity of the cornDanY in roe y.er
Under n.;cw ..a. that vf prooisivn of crrmrnvnisanon solvlivns
and fOlZw3rc authority.
REYIEW OF DEVELOPMENTS AND FUTURE PROSPECTS The results for the
ycar end fiaaneial pasilion of the Company ere v ahar..n in the
annex,-4 fir.:rociel statements. The directors trm;.in ofuimistie
spout the Company's future prospects.
DIVIDENDS Tfv dividends will = diLtriDulcd (or lht; ycnr ended 31
March 1199 (1998 -nil).
Y EAR 2000
7TJt eireetots of the company recognise the significanct: of
this iuut, and believe the) have taken tuffickni mseaares to
mitigate All sitaiflcant risk. the Costs of whle)f arc not
eepeded to be leatcrial.
DIKECTORS AND THEIR INTERCSTS
The beneficial intertats of the tlilaetors hetdine oflf:ce during
she year b she Luuea shag spiral of the eernparfy .ere as
follows;
0.4;16.y who-" Wf 1 Op eoc4
31 March I April
1999 1191
too. V
A MN~rr 9d 135
Mrs a hloais sro us
s 1 Grifruhi
90 0s
E FanW an _ _
. ~ trt.~ne,.~a~
1 James .
y. ~ No alreaas bald any disetosaDle intcrosta it: any other group
companies during the year.
RESE,&IaCtl AND Ds'vFLOPMEhtY
Th. company unctensl:rs en on-golhg programme of research end
deoclppment activities in the, areas of
G01ptVVrtIGatieq,tpl~Jliatli RItdfO~ire authority.
ouatrvRs
Deloitte At Tnuche were appointed aid auditors during the year.
'flrey hove capressed (heir rrplippJte>;S to continue in otnce
aaa a naatot:ot, t<, rnppeint them witl ec proposed at tTfo
fvrftlconiklg Annual General Meeting,
App<'or*d br d of Dircaots
raov
and slaue0 0 ' f of tlsa 8oyd
r
A Harvey Sewewy
,
i; II
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03096331
10-08-99
THE WEB FACTORY
LIMITED
STATEMENT OF DIRECTORS' RESPOVSIBILITIEN
Company few requires the directors to prepare financial
statements for cash r1weirl year which give a true and fair
view of tbc sfa:o of,a=ss of tic cocapany as at the t:n4 Or"
llnaoolal reef and of clue pfolit or loss of the company for
that period. In j.-eparint these fihaneial sd1etnt-nts. the
direetoa arc inquired to a select suitable netounting policies
and then apply them eoaAlatduly; is mate judgements and
estimates that are reaaonoblc and ptudonu
is prepare the ,flhanelat statements on the gnltfg eoneem
bsals unIes4 It Is Inappropriate to prestnnc that the
company will continue in wsineis.
The directors ate tctparnsible for keeping proper accounting
records vh:eh discrme with reasonable seetwicy at any
,' time the furartciel position of thtr eomilliany and to
enable ahem to rnsurc that the financial atateatints comply With
the Compapita Act 1935. Thcy lure also respontblti far
sa(eguarding the asset: of the company and hence rot taking
reasonable steps far the prevention and detection of fraud
and other lrregularitics
3
<PAGE>
-" 03096331
10-08-99
- - -
rxwns 6 Twsft
~ehtaaonr naor.os
of ice etH~s
. , . ............................., Contra _. W rr~s -ee tyu sseu5
Mevle:t Street tcIecao~a orjV, r
aoye 472W'
0-aetncr
#VON Wt AG:7 t f
AUDITORS' REPORT TO THE MEMBERS OF
THE WES FACTORY LIMITED
We have teditac; the financial statemenu on posts 5 l0 1l which have
boon prepared under tire accoontiaa pfelieiat sex out ao page 7.
Respective >retpewtibili6cs ofdlreelVrf atad auditors
Its described on rsage 7 thto. compayrt directors are<<sponaible
for the preperariotl of tinttrte(i( ii4atements. ihit
our crspontlbptSe to form an independent opinion, based on ow
au01L on loose sratrattau and to rcpors our e9ifrien ro you.
Basic -4rp9iaiop.
We conducted oar nudit In accordance wltrt ,pVnicina Standards
iiSVed by the Auditing PtsCtioes Hoard. M
amt includes cxaminalron, 0n s test batty, of evidence telwtal to
the, atAOants end dtxleautes In the finarteu) statetnenb, II ail*
inlaudes an assrumeet of IAa 5ignirkmt cs;imala an3 judgements. made
by the. dlrattus is she preparation of the iutaneial tast:men>s; end
of whether the aecounl4,g policies arc >,pptvptialtt to Rte
comyany'a circuenslaficca, consistently applied and adequately
dlsaoted.
We ptfurnod and rerf<rrrwae our audit too 1e to obtsln alt the
information end exPlisnations -hier we cpntiderrd nmcete,yy in order
ur poytda us .viltt tvlTfeJcnt cvidenee to aive rwoaable aa6unrn:e
met Inc ManeW swrmarrts arc tree iroe>> tnaterlal missdlement,
whether caused by thautt or rather irMylaripr or error. In tortnirg
our optrlon we also evaluated the overact adaquael- at the
prmsenutlon of information in the financial
WtcmfnV.
r
Opiatoq
in eVr opinion the: 8nlrttial etetemenV give a true trtd fair vitw
of the state of the company's ailsln a 31 MrtCh 6999 and of its loco
Ccr lhc yew than ended end have been properly prepared in accordance
with the C.fmpvlkt Act 1945.
Chanered /tccountantr ind Rs jltfered Auditor
Z'1 ~,.1~ l~g y
<PAGE>
10-08-99
HE WEB FACTORY LIMITCD
-.
TKWN
U
PROFIT AND LOSS ACCOW4T
' Year seeded 31 March 1!>99
sc4cp
monlVs
vnaed
31 htars4
1999 1991
Note t i
TuW,Npvga 7 2,6311.4311.0;7,a69
Cost of sates (1.709.097)(609.1)
Gryesyrofit 1as9,l3s4.44,749
Distribution costs - (x,3291
Administrative expenses (1.T773N4)(Td9.213)
OpE1twTINC LOSS o
Uas,olc)oaa.99s)
tntorayt eccct,oaDlc s,;s9 1.6gs
Inatsat payable end similar ehnrges 5 (25.120)(7,517)
L055 V(V ORDINARY ACt1VITtES
BEFORE TAXATION (767.781), (73d.a?7)
Tats on less on ordinary acd,oicica _
LOSS ON ORDINARY ACTIVMF.5
AFTER TAXATION I- OR THE
FINANCIAL YLAR i367,71tt)(35x,83'7)
1lsralDad Iris b*oug%c lorxare
(94~,9P4)(SE9.16T)
Rentneo loss carrlco W;wrar0
(!,321.715)(9a3,99a)
All amounts dor;.ro from <Onti,,~;na, oct;..itive. 71,erv aye no
roeotnlawd mina or loses fa the current financial rear or p1CGC01ng
financial Ixr~iod tuher than as rtated above and eeeord;ngly no
sVtamant of tool recog,ntsod galeu and lesser is pemaes.ccd.
i
3
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10-08-99
D ttH& Tr1E WEB PACTORY
IAWTED
BALANCE SHEET
31 Marsh 1999'
Note 1999
!9'91
- (pound)
<TABLE>
<S> <C>
FIXED SETS
Tanslblaa>,sets 6 16"21 205.072
- CURRENT ASSETS
Stocb 7 12,151 30.816
Dabtors B 812402 590.137
t.= at 08 n1 toils tr banal2.172 . . 300.9:3
........... az~,vzt
911.924
CREDITORS: amounts faltlDs due
witbiaencyerr 9 (1,17~,.Ili)(632,'559)
Id>tT CliRi~ErT ~l.Irt,l3tLiTtE5~S5(pound)TS ;297.393)
56,937
TOTAt_AoSIrTS OM; CURAZNT
LIABILITIES _I28.77Z)(26.1.0091
COMt717'Q1%S= amanntc ratting dug
stler snot= shoo 'One yeso 10 f.90D.000)(93,000)
[1.02E.7?2)' (660.991)
CAPITAL JIND RESCAV E$
o Cal led up share capital ! 1 4911 c jai
Sham A ~oa Account ium 282,422o ?82.822
(1.~I1.773)(943.991)
EQUITY $MAR(pound)1iO:.DERSY FUNDS (1,028.771)(60,991)
w
-O,,x fa,,,,,,,ctsl yat~:mencs ~.~ ~pprore0 Dr the hoard o1
Cirectors on ,~3~i.~ 1999.
s1ptd W1 peR317 ef tile Baird of 0iraeaeaz,
P TJorria ~~
m,,,s sw
DireCtor '
</TABLE>
<PAGE>
10-08-99
THE WED FACTORY LifflITED
NOTES TO T11E ACCOUNTS Year ended 31 h12reD 1999
J, IMFOIlA1wTIr1N REGARDING DIRECTORS AND CRII'LOY8:C5
Seen
:.J months
end*d
31 Mare
099 199e
t s
Dlnecort' emelumenls
Rcmuncraclon 16:,9261 Z 1.118
1949 199<;
]Vo_ Pto.
Average number of pargop: cmploycd
Dircaors
10 6
I1Qmlnutnlion
PrCdtlciwn ~4 25
i !
17 42
Stsff cola durint Ihc yCar (inavdini aircclon)
Water wd saterlrr LZ99 888458.80?
Social security eons 119x127~ 44.115
1,4191.310713,617
.-r ....r~r~r
A. OYGtVSTIfrG LOSS'
Seoria
MCnlba
eadcd
51 M>,rip
1999 1998
if
Opcntla` leis is aRer cRar81n8o
Nsre of plm end n.aehinery i~917 o17.761
I Iitc of motor veAlclvs '7y,030 33,093
Oepreeiuion -ovnetl assets 1:5.1:0 31,399
/lvdilora' ramVfwaov..........................1.1,000 71,J6Z
Foreign e><cAanQS diQsrsncs= - i.~t4
Operating !exerts - Land alld buildings 0,816 18,095
Openuin-. lenset-oLhera~-;cts 19i,Sld BA,660
I
<PAGE>
10-08-99
p& THC 1VEI>: FACT'nRY
l.tR11TED
iw>r
Toopbe
------
V
-------------------
140TES TO THlr ACCOUNTS
Year cadcd 31 Mach 1999
5. ttvTEREST PAYABLE AND 5t.'6nLr1R CHAnCES
ScYri
mvntVa
eltdld
31
11sML
1999
n9e
f
s
.--' Bank loom, ooardrslb and ether loans 23,1TO 7,317
m mr
. rANclaLe rlxeo ASSf.TS
FIKlurss mind Computer
COMP941ff
G<<IaggOardworQ software
'i"oul
t t = s
' co,,
At 1 April 1998 43,010 3ozaas - SaS,s95
Addition& 11,133 50.643 20.17)att,Tti9
A, 31 M011711 199'9 E0.7673f3,72a 70,177 434,664
Accumutalad dcprccirlfOM
w t April 19" 4.0131.36,110 - 140,523
Charge for the ycs.o 9.470110.317 5.833 123,220
At 31 Marts 1999 11,4812a7,127 5.411 2dd,411
Nei book value
we 31 March 1999 47,290los,601 14,740 169,621
At 31 Moocn 1998 33.997166.075 - 205,072
T. STOCKS
1999
1598
C . 1
Finished floods I? 431
10-E16
'Work-In.peoarcu -
20.000
12,451
30.816
s. DEBTORS
1999
197>i
t i
Tr3de debtors 37`,"a 516.129
Amounh vxcd by fdlo , mb3iCisry undrnakinos61.136
Other debtors
Pnparmertls ao0 aeaucd ine-ime 137,652$1,760
a12r102520.127
a
1
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10-08-99
MiA.L aii ssoym '. ..~ s- r,.y ,~aa
v
DOM& T1lF W>rB FACTORY LlM1TEr)
NOTES ?O THE ACCOUNTS
Year oodad 31 March 1999
9. CREDTT01tS: AMOUNTS FALLING DUE WITHIN ONE YEAR
199s
f s
Dank loser: and ov;rdraAs 30s,72A 211,277
Trade ctsditorr 571 A34 796.101
Amounts aortd t0 trouD un4cnakin6s
It,1x9 Ia,609
Patent company 26296
Other
Other tuxes tend social security 57,33291,052 .
OVfcr creditors 1.102
Accruals and deferttd income 1e3.793 13E3aE
t.ac,sla a3
~ta9
10. C;Re.nITORS: Ai`IOU,ITS BALLING DUE AFTEQ,'-TOFG 711A.-'S ONE
YEA.R
t9>!9 t99a
s
sank loans - 7L5,000
Amounts ewes' to parent Company 904.000 . 900,000
909900 923.9m
11. CALLED LP SNARE CAP1'TA1.
1999
199x!
_ : ~1vNOriSrd ! !
1,1100,tX10 erdin0ry (hires of IOp each 1I10,00D'100.000
Called up. allotted and fully paid
I,t110 orGlner7 ahmca of I Op oath ,
161
IL OPERATING LEASE COMMITMENTS
At 31 Mares 1999 the company w= comtnweV to msl;lng the
tblto.,.ins epcratin5 liase paY%,cnes in the
o fellewinb year-
Land 199A
Land and Land and
Du:Wlngs Other 8ui14iap Otter
L i ! i
!.eases which atpirc:
within one Yew
Within 2 to 3 yeas 51.700 - 42.360 19 910
After 5 ycats 17,500 - 13.500 160.359
64.700 191.319 56_060
1912f4
ID
<PAGE>
10-08-99
THF Wye vACTORY LIMITED
YAWN
NOTES TO THE ACCOUNTS Year coded 31 March 1999
13_ ULTIMATE PARFUTCOMPANY
The immed:a%u ...d viumate pvar~r and coArrollin= party of T'Ae Web Factory
Urttited 17 ':aotstee Llrnited. a company inoorporotal to South Alrlcs, The
aceounu of Dasalee Llmited may b* obtained rrom PO 00:4 76724,Wer%dywaod
2144, South Africa.
16. RCLATED PAan' DISCLOSURES
Relationship Kagarc or traasacdooaLaval ar Ralaaee a1 .
traast,ctletu 31 Martr1 1999
(pound) f
Debtors
Portrnt lotorcornpony "dins 166.339 16,16o(
Fellow group subsidiaries Interearnpany tracing
70.071 30,972
Cre0lcors
Parent IetereemDany trading - (~Lg ~.,~9) .
fellow group sutosldiaftaa IDtercornpany erealnS
13.703 CIS.29=)
Parcns Lose - (900.000)
<PAGE>
NOTES TO UNAUDITED PRO FORMA
COMBINED FINANCIAL STATEMENTS
The unaudited pro forma combined statement of operations for Teltran
International Group, Ltd And Subsidiaries consists of actual operating results
for the year ended December 31, 1999 for Teltran and unaudited year ended
December 31, 1999 for the Web Factory Ltd.
On March 15, 2000, Teltran's newly formed United Kingdom subsidiary, Teltran Web
Factory, Ltd. acquired all the assets of the network business conducted by the
Web Factory Ltd., a U.K. affiliate of Datatec Limited, a South African
Corporation. The acquisition included financial software, customer contracts and
network/computer assets for a purchase price of approximately $4,800,000
(approximately 3,000,000 pounds).
The Company made a payment of approximately $1,200,000 at the closing of
purchase and an additional $1,200,000 April 30, 2000. Additional payments of
approximately $1,200,000 are due August 31, 2000 and December 31, 2000.
Pro forma adjustments giving effect to the acquisition in the unaudited pro
forma combined financial statements reflect the following:
a. To record the acquisition of the Web Factory, Ltd. at approximately
$5,000,000 (representing 3,000,000 pounds with conversion at current
rate to be between $4,800,000 and $5,000,000-based upon $1.62
conversion rate).
b. To record allocated expenses of approximately 35% of the Web Factory's
expenses for general and administrative as shown at March 31, 1999.
Since the network division (which Teltran acquired) does not show any
general and administrative expense in its separate financial statements
(unaudited) at December 31, 1999, we believe that the allocation of
general and administration expenses based on sales show a fairer
picture of the pro forma costs to operate the network division that
Teltran acquired.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of
1934, the Registrant has duly caused this amendment to be signed on its behalf
by the undersigned hereunto duly authorized.
Dated: May 30, 2000
TELTRAN INTERNATIONAL GROUP, LTD
(Registrant)
By: /s/ Byron Lerner
------------------------------
Byron Lerner, President
