MIRA
INFORM REPORT
|
Report Date : |
02.02.2007 |
IDENTIFICATION DETAILS
|
Name : |
FOUR SOFT LIMITED |
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Registered Office : |
5 Q1A3 5th Floor
Cyber Tower, Hitec City Madhapur, Hyderabad - 500033, Andhra Pradesh |
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Country
: |
India |
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Financials
(as on) : |
31.03.2006 |
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Date of Incorporation : |
24.12.1999 |
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Com. Reg. No.: |
01-33131 |
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TAN
No.: [Tax
Deduction & Collection Account No.] |
HYDF00177C |
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Legal Form : |
Public limited liability company. Company’s shares
listed on the stock exchages. |
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Line of Business : |
The company is
engaged in development of computer software promoted by technocrat
entrepreneurs for freight and logistic applications |
RATING
& COMMENTS
|
MIRA’s Rating : |
A |
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD
1750000 |
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|
Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well
established company having fine track. Available information indicates high financial responsibility of the
company. Financial position is good. Payments are correct and as per
commitments. The company can be
considered good for any normal business dealings at usual trade term and
conditions. |
LOCATIONS
|
Registered Office / Software
Development Centre : |
5Q1A3 5th Floor Cyber
Tower, Hitec City Madhapur, Hyderabad - 500081, Andhra Pradesh, India |
|
Tel. No.: |
91-40-23100600 /
601 / 603 |
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Fax No.: |
91-40-23100602 |
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E-Mail
: |
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Website
: |
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Area
: |
4000 Sq.fts |
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Head Office : |
H. No. 180, Plot No. 99, Women Co-operative
Society, Road No. 5, Jubilee Hills, Hyderabad - 500 003, Andhra Pradesh,
India. |
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Tel. No.: |
91-40-3554334 |
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Fax No.: |
91-40-3100602 |
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E-Mail : |
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Area
: |
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Branches / Overseas Office : |
Ř
210, Lal Bunglow, 6-3-862 / A &
B, 2nd Floor, Ameerpet, Hyderabad - 500 016, Andhra Pradesh Tel.
No. 91-40-3412471 / 3411068 / 070 / 3100604 Ř
5Q1A3, Cyber Towers, 5th Floor,
Hitec City, Madhapur, Hyderabad - 500 033, Andhra Pradesh Tel. No.
91-40-3100600 / 601 / 603 Fax No.
91-40-3100602 Ř
Q1-A, 35th Floor, Cyber
Towers, Hi-Tec City, Madhapur, Hyderabad - 500 033, Andhra Pradesh Tel. No.
91-40-3100604 Ř
541, Orchard Road, # 19-03, Liat
Towers, Singapore 238881 Tel. No. + 65
8349680 Fax No. + 65
2381780 Ř
C/o. Global Freight Exchange Limited 630, Chiswick High
Road, London W45BG, UK Asia Pac Four Soft Singapore Pte Ltd China Four Soft Logistics Software
(Shanghai) Co. Ltd Four Soft Netherlands B.V. Four Soft Ltd Four Soft UK Limited Four Soft USA
Inc. |
DIRECTORS
|
Name : |
Mr Suresh C Rajpal |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr Palem Srikanth Reddy |
|
Designation : |
Chief Executive Officer and Managing Director |
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|
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|
Name : |
Mr Koh Boon Hwee |
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Designation : |
Independent Director |
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|
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|
Name : |
Mr Douglas Terence Ash |
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Designation : |
Independent Director |
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|
Name : |
Mr Walter Joseph Sousa |
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Designation : |
Independent Director |
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|
|
Name : |
Mr K V Vishnu Raju |
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Designation : |
Independent Director |
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Name : |
Mr M M Pallam Raju |
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Designation : |
Director |
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|
Name : |
Mr P Mangamma |
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Designation : |
Non – Executive Director |
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|
|
|
Name : |
Mr Sarath Naru |
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Designation : |
Independent Director |
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|
|
|
Name : |
Mr Naresh Kumar Patro |
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Designation : |
Company Secretary |
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|
|
|
Name : |
Mr K V Ramakrishna |
|
Designation : |
Independent
and Nominee Director |
KEY EXECUTIVES
|
Name : |
Mr Naresh
Kumar Patro |
|
Designation
: |
Company
Secretary and Compliance Officer |
|
|
|
|
Name : |
Mr Biju
SNair |
|
Designation
: |
Vice
President (Finance and Human Resource) |
BUSINESS
DETAILS
|
Line of Business : |
The company is engaged
in development of computer software promoted by technocrat entrepreneurs for
freight and logistic applications. It also engaged in developing innovative
software products and providing IT consulting services |
|
|
|
GENERAL
INFORMATION
|
Customers : |
Ř
S-net Global, Singapore Ř
Sri Bayana Emas, Malaysia Ř
Roton Vander, Sri Lanka Ř
Fly Jac, India Ř
GF-X, London |
|
|
|
|
No. of Employees : |
583 |
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|
|
|
Bankers : |
Hongkong & Shanghai
Banking Corporation, Panjagutta, Hyderabad - 500 082, Andhra Pradesh |
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Banking
Relations : |
Good |
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|
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Auditors
: |
S R
Batliboi and Company Chartered
Accountants |
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|
|
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Associates : |
Ř
Pramati Ř
Oracle |
CAPITAL
STRUCTURE
Authorised Capital
:
|
No. of Shares |
Type |
Value |
Amount |
|
5,60,77,600 |
Equity shares |
Rs.
5/- each |
Rs.
280.388 Millions |
|
696,120 |
14% redeemable optionally convertible
cumulative preference shares |
Rs
100/- each |
Rs
69.612 Millions |
|
|
Total |
|
Rs 350.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up
Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
3,61,77,649 |
Equity shares |
Rs.
5/- each |
Rs
180.888 Millions |
|
|
Less
: Calls in arrears by others |
|
Rs
0.012 Millions |
|
|
Less : Amount recoverable from ESOP
trust [Face value of 1,094,837 equity
shares(pervious year : 1,170,200) allotted to the trust] |
|
Rs
4.388 Millions |
|
|
Total |
|
Rs 176.488 Millions |
FINANCIAL DATA
[all
figures are in Rupees Millions]
ABRIDGED BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
176.488 |
159.300 |
158.700 |
|
|
3] Reserves & Surplus |
532.689 |
261.600 |
230.400 |
|
NETWORTH
|
709.177 |
420.900 |
389.100 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
2.704 |
0.000 |
0.000 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
TOTAL BORROWING
|
2.704 |
0.000 |
0.000 |
|
|
DEFERRED TAX LIABILITIES |
2.291 |
0.000 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
714.172 |
420.900 |
389.100 |
|
|
|
|
|
|
|
APPLICATION OF
FUNDS
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net
Block]
|
64.038 |
51.400 |
21.400 |
|
Capital
work-in-progress
|
0.000 |
00.300 |
0.000 |
|
|
|
|
|
|
|
INVESTMENT
|
141.222 |
90.600 |
08.400 |
|
DEFERREX TAX
ASSETS
|
0.000 |
|
|
|
|
|
|
|
|
|
CURRENT ASSETS,
LOANS & ADVANCES
|
|
|
|
|
|
|
Inventories
|
0.000 |
0.000 |
0.000 |
|
|
Sundry Debtors
|
104.819 |
37.700 |
30.000 |
|
|
Cash & Bank
Balances
|
273.412 |
305.500 |
338.900 |
|
|
Other Current
Assets
|
8.755 |
|
|
|
|
Loans &
Advances
|
233.675 |
12.600 |
12.100 |
Total
Current Assets
|
620.661
|
355.800
|
381.000 |
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current
Liabilities
|
76.333 |
76.300 |
12.600 |
|
|
Provisions
|
35.467 |
01.000 |
09.300 |
Total
Current Liabilities
|
111.800
|
77.300
|
21.900 |
|
Net Current Assets
|
508.861 |
278.500 |
359.100 |
|
|
|
|
|
|
|
MISCELLANEOUS
EXPENSES
|
0.051 |
00.100 |
00.200 |
|
|
|
|
|
|
|
TOTAL
|
714.172 |
420.900 |
389.100 |
|
PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
Sales Turnover
[including other income]
|
244.037 |
171.200 |
142.800 |
|
|
|
|
|
Profit/(Loss)
Before Tax
|
48.878 |
31.800 |
52.100 |
Provision for
Taxation
|
6.980 |
03.500 |
00.900 |
Profit/(Loss)
After Tax
|
41.898 |
28.300 |
51.200 |
|
|
|
|
|
|
Import
Value |
9.223 |
6.241 |
NA |
|
|
|
|
|
Total Expenditure
|
195.159 |
139.400 |
90.700 |
QUARTERLY RESULTS
|
PARTICULAR |
30.06.2006 |
30.09.2006 |
31.12.2006 |
|
Type |
1st
Qtr |
2nd Qtr |
3rd Qtr |
|
Sales Turnover |
94.700 |
135.400 |
114.500 |
|
Other Income |
8.500 |
3.100 |
1.500 |
|
Total Income |
103.200 |
138.500 |
116.000 |
|
Total Expenditure |
63.600 |
98.100 |
106.900 |
|
Operating Profit |
39.600 |
40.400 |
9.100 |
|
Interest |
0.300 |
0.000 |
0.200 |
|
Gross Profit |
39.300 |
40.400 |
8.900 |
|
Depreciation |
3.800 |
3.700 |
5.800 |
|
Tax |
1.800 |
1.600 |
1.600 |
|
Reported PAT |
33.700 |
35.100 |
1.500 |
200606 Quarter 1 --------------- Notes EPS is Basic Status
of Investor Complaints for the quarter ended June 30, 2006 Complaints Pending at
the beginning of the quarter Nil Complaints Received during the quarter 05
Complaints disposed off during the quarter 05 Complaints unresolved at the end
of the quarter Nil 1. The above financial results have been reviewed by the
Audit Committee, considered and approved by the Board of Directors at its
meeting held on July 27, 2006. 2. The results for the quarter ended June 30,
2006 are not comparable with those of the corresponding previous quarters due
to acquisition completed in September 2005, resulting in increased offshore
activity. 3. The Consolidated Financial Statements of Four Soft Ltd (four Soft)
and its wholly owned foreign subsidiaries are prepared in accordance with
Accounting Standard 21 -'Consolidated Financial Statements' issued by the Institute
of Chartered Accountants of India. All significant intra group balances and
intra group transactions have been eliminated. 4. The consolidated results for
the quarter ended June 30, 2006 have been prepared based on the unaudited
financial results of the following subsidiaries: (a) Four Soft LLC, USA, b)
Four Soft BV, The Netherlands and its subsidiaries (Four Soft NL BV, Four Soft
UK Ltd. Four Soft USA Inc. and Four Soft Germany GMBH), (C) Four Soft Singapore
Pte Ltd and (d) Four Soft Malaysia Sdn Bhd. 5. The consolidated results for the
quarter ended June 30, 2006 are not comparable with those of the corresponding
previous quarter due to acquisition of the following step down subsidiaries in
September 2005: (a) Four Soft NL BV, (b) Four Soft UK Ltd. (c) Four Soft USA
Inc. and (d) Four Soft Germany GMDH. 6. Implementation expenses paid to a
subsidiary Company are eliminated on consolidation. 7. Figures for the
corresponding previous periods, have been regrouped / rearranged wherever
necessary.
200609 Quarter 2 --------------- NOTES: Expenditure includes
Staff Cost Rs 54.129 million Traveling Expenditure Rs 9.234 million
Implementation expenditure Rs 22.797 million Other Expenditure Rs 10.442
million Exchange rate (Gain)/Loss Rs 1.525 million EPS is Basic Status of
Investor Complaints for the quarter ended September 30, 2006 Complaints Pending
at the beginning of the quarter Nil Complaints Received during the quarter 04
Complaints disposed off during the quarter 04 Complaints unresolved at the end
of the quarter Nil 1. The above financial results have been reviewed by the
Audit Committee, considered and approved by the Board of Directors at its
meeting held on October 20, 2006. 2. Figures for the corresponding previous
periods, have been regrouped / rearranged wherever necessary.
200612 Quarter 3 --------------- Notes Expenditure includes
Staff Cost Rs 55.553 million Implementation expenses Rs 21.583 million Exchange
Difference loss/ (gain) Rs 10.977 million Other Expenditure Rs 18.827 million
EPS is Basic Status of Investor Complaints for the quarter ended December 31,
2006 Complaints Pending at the beginning of the quarter Nil Complaints Received
during the quarter 11 Complaints disposed off during the quarter 11 Complaints
unresolved at the end of the quarter Nil 1. The above financial results have
been reviewed by the Audit Committee, considered and approved by the Board of
Directors at its meeting held on January 30, 2007. 2. During the current
quarter the Company through its wholly owned subsidiary Four Soft UK Ltd. has
acquired Freight and Shipping products of FWL Technologies, including employees
and customer contracts. 3. During the current quarter the Company has entered
into an agreement to acquire 100% shares of the Denmark based Transaxiom Holding
A/S, a global provider of transportation and logistics solutions. 4. During the
current quarter Four Soft LLC, USA the wholly owned subsidiary of the Company
has been merged with its step down subsidiary Four Soft USA Inc. 5. The segment
reporting under Clause 41 is not applicable as the company has only one primary
segment. 6. Figures for the corresponding previous periods, have been
regrouped/rearranged wherever necessary.
KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity Ratio |
0.00 |
0.00 |
0.00 |
|
Long Term Debt-Equity Ratio |
0.00 |
0.00 |
0.00 |
|
Current Ratio |
5.08 |
7.43 |
15.04 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
2.70 |
3.18 |
5.92 |
|
Inventory |
0.00 |
0.00 |
0.00 |
|
Debtors |
3.07 |
4.71 |
4.80 |
|
Interest Cover Ratio |
82.33 |
80.50 |
522.00 |
|
Operating Profit Margin(%) |
27.85 |
24.97 |
40.06 |
|
Profit Before Interest And Tax Margin(%) |
22.59 |
20.20 |
37.34 |
|
Cash Profit Margin(%) |
24.37 |
22.52 |
39.34 |
|
Adjusted Net Profit Margin(%) |
19.11 |
17.75 |
36.62 |
|
Return On Capital Employed(%) |
8.76 |
7.95 |
22.32 |
|
Return On Net Worth(%) |
7.43 |
6.99 |
21.83 |
STOCK
PRICES
|
Face Value |
Rs. 10/- |
|
High |
Rs. 71.30 |
|
Low |
Rs. 67.25 |
LOCAL
AGENCY FURTHER INFORMATION
INDUSTRY
Software is the main
driver of the Indian IT industry and accounts of more than 50% of the total
revenue. The Indian software industry has become the base of quality software
professionals as India has a pool of low-cost English speaking scientific
manpower. The software industry is growing at compounded growth rate of 52%
since last five years. The Indian software companies have been successful in
building a global image for themselves and are the most preferred vendor in the
US or outsourcing software requirement.
During FY98, Indian
software industry recorded a total revenue of Rs.100.40 billion ($2.4 billion)
at growth rate of more than 59% over FY97. Software export industry again
recorded a higher growth than the domestic software industry. Software export
increased by 67% in FY98 to record a turnover of Rs.65.30 bn whereas domestic
software industry recorded a turnover of Rs.35.10 bn while registering a growth
of 45% in FY98.
USA is India’s main
export partner accounting for 58% of the total software exports followed by
Europe with 21%. In the last couple of years, Japan has started emerging as an
attractive destination for Indian software exports accounting for around 4%.
Over the next few years, software exports to Europe, Australia and Asian
countries are expected to increase significantly. Other markets that are
expected to have good potential are South Africa and Latin America.
STRATEGIC EVENTS
We continue to focus on delivering products and quality services to
our global customers.
Cargomate International B.V Acquisition
Your company acquired CargoMate Interntional B.V, a dutch company. The
acquired company in engaged in delivering products and services to large
European Freight Forwarding Customers. The acquisition has been in a
combination of cash 87.5% (Rs. 64.00 millions) and stocks 12.5% (Rs. 9.800
millions). The Company has revenues of Rs. 78.400 millions per annum with a
profit after tax of Rs. 33.600 millions. The company has strength of 14
employees. The stocks of Four Soft limited will be issued and allotted for
consideration other than cash, subject to members approval and necessary
statutory approvals.
AWARDS AND RECOGNITIONS
The company has received various awards and certification during the year
:
* Received the Best IT SME award from HYSEA for 2004.
* Finalist for the ICICI Emerging India Awards 2005 for SME
Companies.
* Received the 'Award of Excellence' from Global Institute of Logistics,
USA as the world's first web centric enterprise application for Transportation
and Logistics Companies.
Company products 4S eTrans and 4S eLog are Sun. Microsystems Inc,
Application Verification Kit Certified for Enterprises.
Four Soft B.V
Netherlands
On acquisition of CargoMate International B.V, the company was converted
as 100% subsidiary and has created a market presence in Europe with large
customer base. This will position Four soft in cross selling its top line
products to the existing customers of its subsidiary with improvised
technological advantage and delivery capabilities.
For the period 30-09-2004 upto 31-03-2005 revenues stood at
0.78 million (Rs.41.558 millions) and net profit of 0.16 million
(Rs.8.536 millions).
GROWTH
Four-Soft is a technology company that develops innovative software
products, and provides IT consultancy services to the logistics and supply
chain management marketplace using advanced web technologies that were earlier
not possible with conventional technology of legacy and client-server systems.
Your company is presently employing more than 300 employees with an increase of
more than 100 % over the previous year. Professionals with excellent track
record form the core management team. Besides several years of experience, they
have academic degrees from reputed institutions in India such as IIT's, IIMs,
RECs, Chartered Accountants etc.
Sales & Marketing
The company would be pleased to know that they are slowly
maturing into a complete Product and Solutions company with more than 100
Customers globally and implementation in over 25 countries. The company now
operates with its own office in India, USA, The Netherlands, Singapore, China
& Malaysia. We are exploring several vertical diversification opportunities
to position as an End-to-End ERP solution provider for this industry. This year
has added 8 to 10 new organic customers and about 90 customers through
acquisitions.
Expansion
The company is geared for further growth of both organic and inorganic
nature. New space is being added within Cyber Towers - where the company is
head quartered - to take the total area occupied to 16,000 Sq Ft. Company owns
nearly 8000 Sq Ft of the above area. Your company has invested in several tools
that help in creating more robust products.
Internally, company has invested in Project Management, Payroll, Sales
Force and HR solutions to better the efficiency of employees and for more
metrics driven management. ISO 9001:2000 has been diligently implemented and is
being religiously followed with continuous improvements for better
efficiency.
Future plan of
action
The company's focus is now moving the existing products from execution level to
Decision Making Model level. Future benefits are expected to flow in from
initiatives undertaken in coming years
Overview
The financial statements have been prepared in compliance with the
requirements of the Companies Act' 1956, and Generally Accepted Accounting
Principles (GAAP) in India. The Management of Four Soft accepts responsibility
for the integrity and objectivity of these financial statements, as well as for
the integrity and objectivity of these financials statements, as well as for
various estimates and judgements used therein. The estimates and judgements
relating to the financial statements have been made on a prudent and reasonable
basis, in order that the financial statements reflect in a true and fair manner
the form and substance of transactions, and reasonably present the company's
state of affairs and profits for the year.
Product Division
A B2B e-commerce solutions for logistics, transportation,
freight forwarding and distribution industries.
It Consulting
Division
Software development (On-site and Off-shore) and IT
consulting and placement services
Its' product range includes the following :
Ř
4S e-supply - It is the perfect web
based solution to deliver the synergy and visibility at part level across the
entire supply chain. It can be used as an
integrated solution covering the whole supply chain management. It can also be deployed independently as 4 S
e-Log for the logistics and distribution management and e-Trans fort the
freight management.
It has the following two modules :
Ř
4S e-Trans is a multi modal freight
management system. It is a complete B2B
enterprise application and handles all operational, customer relations,
financial, marketing and sales information needs of air, ocean and trucking.
Ř
4S e-Log is a complete Logistic
Management System. It meets the needs
of any type of logistics management in the supply chain-for distribution or
manufacturing processes.
Ř
Inbound Processing
Ř
Outbound Processing
Ř
Warehousing
Ř
Accounting
Services
IT Consulting and Software Development Services
It provides complete software development services
Software
Development Services
- On-Site
Development
- Off-Shore
Development
IT
Consulting Services
- Placement
Consultancy
- Project
Consultancy
Domain
Expertise
- Transportation
- Logistics
- Freight Forwarding
- Financial
Services
- Warehouse
Management
- Supply-Chain
Management
AS
PER WEBSITE
COMPANY OVERVIEW
Four
Soft Limited (NSE: "FOURSOFT" BSE: 532521) an Enterprise Solutions
Company that develops innovative software products, and provides IT consultancy
services for the logistics and supply chain management marketplace. Promoted and
invested by technocrat entrepreneurs from all parts of the world. Our
state-of-the-art software development center is based in the HITEC city of
Hyderabad, India. Our sales and support offices are located across Asia,
Europe, and North America.
Four Soft's
e-Supply suite is fully web-centric enterprise operating system specifically
designed to fulfill both the operating and financial information needs of
companies involved in executing the activities of the Supply Chain - order
processing, warehousing and distribution from multiple locations, and
management of multi-modal transportation services and service providers. With a
combined 200 man years of efforts spent in development of 4S product, this
depth of knowledge gives Four Soft the expertise to maintain a competitive
organization and ability to respond to technology advancements and changes in
markets.
Over 500+
dedicated, and highly skilled IT professionals provide solutions and products
for Logistics, Freight Forwarding, Transportation, Distribution and Supply
Chain Process Management. Four Soft's Offshore Development center services
clients across the Globe. The offshore presence enables us to deliver
significant cost benefits to customers in terms of resources as well as
infrastructure.
Four Soft is a
listed company on the National Stock Exchange (NSE) and The Stock Exchange,
Mumbai (BSE). UTI Venture Capital Fund, Reliance Capital, GIC and Kotak are
amongst the largest financial institutions that have invested in the company.
MISSION
Four Soft's
value proposition is to deliver rapidly deployable, cost effective, web-native,
and enterprise-level operating systems that support the dramatic productivity
gains and the potential for expanded service offerings.
Four Soft's
success is governed by two factors: successful marketing of the advantages and
benefits of the Four Soft Supply Chain and logistics technology applications, and
successful realization of those advantages and benefits by Four Soft clients.
The guiding principles behind this success are: honoring and exceeding customer
expectations from the quality of the applications and the deployment process.
BVQi
BVQi auditors
have recommended Foursoft for ISO 9001:2000 certification based on audits
conducted during 25-26th Feb, 2004. The scope of audit is as follows: DESIGN,
DEVELOP, CUSTOMISE, IMPLEMENT AND MAINTAIN ENTERPRISE SOLUTIONS IN
TRANSPORTATION, LOGISTICS AND SUPPLY CHAIN MANAGEMENT BASED ON ADVANCED WEB
TECHNOLOGIES FOR WORLDWIDE CUSTOMERS.
This is a
milestone in our endeavor to meet increasing expectations of our stakeholders -
customers, investors, business partners, suppliers, statutory bodies and
employees. We are committed to compliance as well as continuous improvement in
quality process across our organisation.
GLOBAL INSTITUTE OF LOGISTICS - GIL
4SOFT Helping the Supply Chain
Four Soft's web-centric supply chain tool has been
recognised.
Following a detailed
correlated research and selection process into the provision of software
solutions to the transport and logistics industry, the Awards Committee at the
Global Institute of Logistics (GIL) has designated FourSoft as the recipient of
it’s “Award of Excellence” accreditation. The comprehensive study
conducted by the research department of the Institute over the last year draws
for a significant part on a quality-ranking system based on responses provided
by concerned parties within the global logistics sector. The research
department of the Institute has been conducting a comprehensive study into the
provision and application of software solutions in the logistics sector over
the last year and this has led to the Institute’s recognition of FourSoft. The
Institute, in its research of supply chain management software, specifically
looked at the standards applied by those in the information technology sector
that are contributing to the development and advancement of logistics and best
practice in the sector and accordingly marks FourSoft as leading the way in
logistics applications.
One of the
outcomes of the study sees FourSoft emerge as the unequivocal choice of the
Awards Committee for conferring of its “Award of Excellence”, for its fully
web-based software for supply chain management. FourSoft’s e-Supply is the
first fully web-centric integrated enterprise application product which offers
an end-to-end total solution, which created the first B2B, supply chain
management services product in the world. E-Supply is the first software suite
to meet the global demand for a fully web-based product that works seamlessly
from one end of the supply chain to the other.
About FourSoft
FourSoft is a supply chain and logistics solutions provider. The central tenant
of this technology company is to build enterprise solutions in supply chain
process management. The company develops innovative software products, and
provides IT consultancy services to the logistics and supply chain management
marketplace. The company’s flagship product, e-Supply, is the world’s first
fully web-based operating system and enterprise application to provide seamless
execution across the operating and informational needs of a company's supply
chain. The product links order processing, warehousing & distribution from
multiple locations, and management of multi-modal transportation service
providers through its suite of software. Started by a Stanford graduate, Palem
Srikanth, its investors and employees have strong backgrounds in transportation
operations, logistics management, finance and information technology from many
parts of the world including USA, Europe, Singapore and India. Its Board of
Directors includes Koh Boon Hwee, chairman of Singapore Airlines, Douglas Ash,
chairman, Global Freight Exchange (GF-X) and Suresh Rajpal, Technova Global’s
CEO. Their software development centre is based in the City of Hyderabad,
India, with sales and support offices in Asia, Europe, and North America.
The current IPO
is facilitating the raising of funds to finance the expansion of FourSoft’s
existing facilities, set up international marketing network, target
acquisitions and meet product development expenses.
Lead analyst at
the Institute Siobhan Kelly explaining the Institute’s decision said:
‘The Global 3RD party logistics industry is eager for information, our
analysis shows that Today's supply chain management efforts demand real time
information. It is one of the most vital tools that lowers costs through
efficient execution of logistics services while keeping inventory levels to a
minimum. Logistics providers need interactive visibility to improve inventory
flows. To achieve this, they must be able to communicate and share information
with their supply chain partners in real time. An internet based solution
provides the operating platform and tools necessary to manage inventory
programmes.
Because
FourSoft’s platform is a web-centric inventory management system, its customers
have total flexibility and can add or close facilities to meet their demands
and all that is required is little more than internet access. FourSoft’s
solutions improve the speed of movement of goods through the transportation and
logistics network, and improve the accuracy of information by automating the
exchange of data between participants in the supply chain.’
Commenting on
the award Palem Srikanth Reddy, Managing Director of Four Soft said:
“ 4S has invested over 150 man years and 1 million lines of code, in
each of the products, on advanced web technology of J2EE. The recognition for
our efforts is visible through our customers and consequent financial success
of the company. However, this award from Global Institute of Logistics, is
perhaps the single biggest recognition of the efforts, technology, products and
future of 4S. We are extremely proud to be associated with GIL and thank them
for this award”.
HYSEA
Hyderabad,
February 25, 2005 -- "Four Soft has bagged the Best IT SME award for the
year 2003-04 announced by Hyderabad software Exporters Association (HYSEA). The
award was conferred by the honourable chief minister of Andhra Pradesh, Dr Shri
Y. S. Rajashekar Reddy, on the 13th Annual Awards function of HYSEA on 25th
February 2005."
NATIONAL SOFTWARE TESTING LABS - NSTL
Four Soft's e-Trans Product is Certified as
"NSTL Tested"
Performance tests using 1000 concurrent users show that the
product can handle the load
Four Soft Pvt.
Ltd. has received the approval to use the prestigious "NSTL Tested"
logo for the performance of its e-Trans application. The "NSTL
Tested" logo is awarded by NSTL, Inc., an independent testing facility
based in Philadelphia, USA, to those products that meet its stringent
standards. The testing was performed by NSTL's affiliate in India, NSTL(India).
The "NSTL Tested" logo carries an unmatched credibility and
demonstrated the technical excellence of the Four Soft Product.
The Four Soft
product was tested using 1000 concurrent virtual user. The testing demonstrated
that the product was able to handle the load and perform gracefully under those
conditions. The exact performance report can be obtained by contacting NSTL or
NSTL(India). The Performance reports show the response times for executing
various transactions under the load of 1000 concurrent users.
Four Soft can
be proud of its technical achievements. Our testing standards are high and any
product that can meet those standards has cause to celebrate.
A plaque commemorating the award of the "NSTL
Tested" logo was presented to Four Soft.
GKP Reddi
Authorized Signatory
NSTL (India)
SUN
4S products certified as "Java Powered for
the Enterprise" by SUN
We are pleased to announce that our core products - eTrans,
eLog and EP have successfully completed Sun Microsystems' Java(TM) Application
Verification for the Enterprise (Java AVK Enterprise) program and are now
certified as " Java Powered for the Enterprise ". The date of certification
for each product being :
Core eTrans : 26-Apr-2005
Core eLog & eTrans EGL : 17-May-2005
Core EP : 8-Sep-2005"
The "Java
Powered for the Enterprise" program tests the portability of enterprise
applications across different implementations of the enterprise Java platform,
also known as Java 2 Enterprise Edition, (J2EE(TM)). The Java-verification
authenticates 4S products' compatibility with all J2EE technologies and
platforms, and confirms that 4S products are true 'Write Once, Run Anywhere'
Java applications.
The support for
a wide range of operating systems, J2EE compatible application servers and
option to run against any RDBMS, enables 4S customers to use their existing IT
infrastructure and in-house technical expertise to deploy and manage a
world-class software application. This gives customers the added level of
assurance that their application will deploy on any Java platform and can work
in mixed mode application server environments.
For more details on the above, please visit
http://java.sun.com/j2ee/verified/directory.html
TECHNOLOGY
The
e-Supply application suites utilize leading edge technologies that support
real-time, online, thin client applications based on the advanced web
technology platform of J2EE. This provides our clients a scalable, flexible,
and interoperable solution with high performance. This technology reduces
implementation time, minimizes total cost of ownership, and supports rapid and
simple customization and enhancement.
All applications are 100% web-centric, and built on J2EE
specifications using HTML/ DHTML/CSS, Java Beans, Java Server Pages, Enterprise
Java Beans, and servlets. Configuration and installation specific options are
handled through XML and are stored in the database. The applications are open
platform and not restricted to O/S, database, or hardware choices.
Currently
supported environments include Windows NT/2000, Sun Solaris, IBM AIX, SCO UNIX,
and Linux operating platforms. Currently supported relational databases include
Oracle 9i-Release 2, MS SQL Server, and DB2. The applications work on all
application servers, including BEA Weblogic, IBM Websphere, Oracle 9iAS, Sun
iPlanet, and Pramati. As a thin client technology, user interfaces are
exclusively through a web browser. The National Software Testing Laboratory
(NSTL) has tested the e-Supply products for performance on 1,000 concurrent
users.
ARCHITECTURE
The e-Supply applications
are designed on a 3-tier architecture, in place of the traditional 2-tier
client-server architecture. 3-tier architecture allows greater flexibility,
scalability and availability: the products have been designed to be adaptive to
new business demands faster without down time. This new technology
substantially reduces implementation cost, as the solutions are platform
independent and there is no additional software installation on user machine.
As both internal and external users will be accessing the
same database through their web-browser, the data/time lag that has plagued
many systems is eliminated.
PRODUCTS
Four Soft's 4S
eSupply SP (Service Provider) and 4S eSupply EP (Enterprise) application suites
are installed and operating in nearly a dozen sites around the world. eSupply
is the first fully web-centric enterprise operating system specifically
designed to fulfill both the operating and financial information needs of
companies involved in executing the activities of the Supply Chain - order
processing, warehousing and distribution from multiple locations, and
management of multi-modal transportation services and service providers.
Our products provide companies with a
distinct competitive advantage by sharply reducing the cost of acquisition and
ownership of technologies needed to decrease time to market, unlock the
business value of the logistics process, and deliver relevant information to
those who need it when they need it throughout the supply chain. Because 4S
eSupply uses the power of leading edge Internet technology, companies can
quickly and affordably realize the full potential of their information and
technology assets by aligning external supply chain systems with evolving
business objectives.
SERVICES
The customers
may expect lower pricing while increasing your accessibility and service - this
drives companies to continuously enhance the performance of their supply
chains. Product life cycles are becoming increasingly shorter and the
difference between competing products is smaller than ever. One means of
surviving in such a tough competitive climate is to more closely collaborate
with partners in the supply chain to streamline business processes, transcend
traditional boundaries, and enhance mutual customer benefits. Our applications
offer advanced workflow tools to enable a company to mesh industry best practices
with specific distribution model requirements and to meet the exact needs of
your supply chain network - even as it changes.
How can we help
your company meet this challenge? Our services objectives are to rapidly
deliver and deploy cost effective and Internet-based enterprise-level operating
systems specifically designed for executing all aspects a global supply chain -
regardless of what market or supply chain events your company must manage.
While delivering our integrated software products to our customers, we also
provide consulting, customization, implementation, and training services.
PARTNERS
Four Soft is a
technology company that develops innovative software products, and provides IT
consultancy services to the logistics and supply chain management marketplace.
Our investors, and employees have strong backgrounds in transportation
operations, logistics management, finance, and information technology from many
parts of the world including USA, Europe, Singapore, and India. Our
State-of-the-Art software development center is based in the HITEC city of
Hyderabad, India, with sales and support offices located in Asia, Europe, and
North America.
CUSTOMERS
At
Four Soft, we consider our customers as one of our most important assets, and
our goal is to exceed their expectations as an on going process on product
quality, customer service, and support. Customers are critical to our long-term
success, and we are continually seeking new and creative ways to build and
enhance our relationships with them.
There are
over 38,000 users of our software globally, here are some of them.....
PRESS RELEASES - 2005
About
Four Soft Ltd
4S is an
enterprise solutions company, providing innovative software products,
exclusively for transportation, logistics and supply-chain management market
place and also offers IT consultancy services. It is the market leader in the
transportation and logistics segment with a large international client base
including majority of the top twenty Transportation & Logistics companies
of the world. It has its software development centre in HITEC city of
Hyderabad, India with products developed on three-tier web architecture. The
Company has large customers including Eagle Global Logistics (EGL), DHL, Kuehne
& Nagle, Schenkers, CH Robinson Europe, Panasonic Logistics, UTi, Frans
Maas Europe, S-Net Freight, W.T. Limited and Frank-Lin Distilleries. Additional
information about Four Soft is available at http://www.four-soft.com.
For further information contact:
Biju.S.Nair - +91 9885106057
nair.biju@four-soft.com
Four Soft Limited
Chavneet Arora - +91 9820165470
chavneet@adfactorspr.com
Adfactors PR
Four Soft targets $500 million global logistics
software industry; to launch new products in 18 months
New products 4S-3Plex and 4S-eCustoms to cover vital industry gaps
Hyderabad,
October 14, 2005 -- Four Soft Limited (4S) (NSE: "FOURSOFT" BSE:
532521), a leading provider of transportation, logistics and supply-chain
process management software solutions to large enterprises, announced its
strategy to target the $ 500 million global logistics software industry. 4S
plans to launch a host of new products in the next 18 months. To further this
endeavour, the company announced the commencement of development of two new
products – 4S-3Plex and 4S-eCustoms.
4S-3Plex will
bring together various logistics players in the industry to collaborate on a
single open platform. The platform will primarily enable regional and mid-sized
forwarders, agents and transportation companies to work seamlessly to provide
the full visibility of the entire chain to their end customers.
4S-eCustoms is
a product that will accelerate the import and export clearance of cargo in
major geographic locations. Customs clearance of major countries will be
available in one web based system having the capability to handle the
operations, automate interaction with various government customs agencies and
ensure compliance. 4S-eCustoms will operate both in standalone mode and as an
integrated module with 4S eTrans product.
4S had recently
acquired DCS Transportation and Logistics Solutions division, a UK
headquartered Transport & Logistics Software solutions major, with
operations in UK, The Netherlands, US, France & Germany. The acquisition
established 4S as the market leader with large international client base
including majority of the top twenty Transportation & Logistics companies
of the world.
Speaking on the
new initiatives, Mr. Srikanth Palem, CEO & MD, Four Soft Ltd. said,
"The demand of high supply chain visibility, fast turnaround time and
increasing pressure on costs by the end customers is forcing the various
regional and mid-sized players in the T & L industry to collaborate among
themselves and speed-up interaction with governmental agencies like customs.
4S-3Plex and 4S-eCustoms are designed to address these evolving needs and will
help 4S stay ahead of the market."
"Four Soft
has become the leader in logistics applications by continuously expanding our
product portfolio and enhancing our existing products to offer technologically
advanced, end-to-end solutions and will continue to do so. The close fit of
these products with our current range of products will help us in completing
the portfolio and cover the new evolving gaps in the industry." he added.
On the
occasion, Mr. Koh Boon Hwee, member of the Board of Four Soft said, "With
their domain expertise and technological strength, Four Soft is well positioned
to anticipate and understand the evolving needs of this domain and create products
that will help the logistics players improve productivity."
"These
products come at the right time when 4S is positioned for consolidation and
future growth. We believe they will add value to the long term growth of the
Company and help sustain leadership position in the T&L vertical
worldwide" said Mr. Walter J Sousa, and member of the Board of Four Soft.
About Four Soft Ltd
4S is an enterprise solutions company, providing innovative software products,
exclusively for transportation, logistics and supply-chain management market
place and also offers IT consultancy services. The global operations of the
company are based out of India, UK, The Netherlands, Singapore and USA. It has
its software development centre in HITEC city of Hyderabad, India with products
developed on three-tier web architecture. The Company has large customers
including EGL Global Logistics, DHL, Kuehne & Nagle, Schenkers, CH Robinson
Europe, Panasonic Logistics, UTi, Frans Maas Europe, S-Net Freight, W.T.
Limited and Frank-Lin Distilleries. Additional information about Four Soft is
available at http://www.four-soft.com
For further information contact:
Rakesh Kumar M - +91 9885106057
rakeshkumar.m@four-soft.com
Four Soft Limited
Chavneet Arora - +91 9820165470
chavneet@adfactorspr.com
Adfactors PR
Four Soft acquires DCS to become the world's
largest transportation & logistics software product company
Cumulative business volume of 4S to jump to the range of US$ 28 million
Mumbai,
September 5, 2005 -- Four Soft Limited (4S) (NSE: "FOURSOFT" BSE:
532521), a leading provider of transportation, logistics and supply-chain
process management software solutions to large enterprises, has entered into a
Share Purchase Agreement (SPA), through its wholly owned subsidiary Four Soft
BV, Netherlands to acquire 100% shares of DCS Transportation and Logistics
Solutions division, a UK headquartered Transport & Logistics Software
solutions major, with operations in UK, The Netherlands, US, France &
Germany.
Under the terms
of the agreement, which was approved by the companies' boards of directors, the
cumulative purchase consideration will be approximately US$ 19 million. ICICI
Bank UK has part funded the transaction through debt funding.
The acquisition
of DCS gives 4S the size and reach of a global player and for all existing and
potential customers a local partner to cater to their needs with strong local
teams. This acquisition establishes 4S as the market leader with large
international client base including majority of the top twenty Transportation
& Logistics companies of the world.
Speaking on the
acquisition, Mr. Srikanth Palem, CEO & MD, Four Soft Ltd. said, "4S
offers the next generation technologies and products with a strong development
centre in India. DCS has excellent domain knowledge and established customer
base for existing products. This acquisition presents the combined customer
base a reliable migration path forward and global support for a comprehensive
range of products and services in Transportation and Logistics."
"The
combined customer base will expand from 120+ to 250+ and the range of products
will encompass the complete Transportation & Logistics domain catering to
30,000+ users spread across 75 countries," he added.
On the
occasion, Mr. Stephen Yapp CEO of DCS Transport and Logistics Solutions Ltd.
said, "all industry indicators point to the inevitable movement towards
comprehensive solutions on advanced technologies for this industry which has
been recognized by DCS as well in its product roadmap. This acquisition will
aide to speed up this process with 4S benefiting from the large visibility and
customer base that DCS enjoys in this industry today and we believe there is
strong win-win for our shareholders, customers, partners and employees."
Mr.Kalpesh
Kikani, Head Corporate Banking / ICICI Bank representative stated, "ICICI
is happy to be a part of the transaction and getting associated with Four Soft.
ICICI Bank UK has been involved in similar transactions and helped Indian
corporates to acquire companies globally." The entire debt funding of the
transaction has been provided by ICICI Bank UK.
Ernst and Young was transaction advisers for the above
transaction.
About
Four Soft Ltd
4S is an
enterprise solutions company, providing innovative software products, exclusively
for transportation, logistics and supply-chain management market place and also
offers IT consultancy services. It has its software development centre in HITEC
city of Hyderabad, India with products developed on three-tier web
architecture. The Company has large customers including EGL Global Logistics,
Panasonic Logistics, Frans Maas Europe, CH Robinson Europe, S-Net Freight, W.T.
Limited, Frank-Lin Distilleries and Century Logistics Berhad. Additional
information about Four Soft is available at http://www.four-soft.com
DCS
Transport and Logistics Ltd
DCS Transport
and Logistics solutions is a leading provider of software and services to the
logistics industry - an industry which continues to experience unprecedented change.
DCSi.Logistics provides a total solution for all aspects of logistics and
freight forwarding by combining its core modules with add-ons such as mobile
communications, digital document imaging, voice enhanced applications and
on-board computing. DCS Transport & Logistics Solutions is part of the DCS
Group (LSE: DCS), an International IT Solutions Company. Additional information
on DCS can be obtained from http://www.dcstrans.com.
For further information contact:
Krishna RSR - +91 98495 61250
krishna.rsr@four-soft.com
Four Soft Limited
Chavneet Arora - +91 9820165470
chavneet@adfactorspr.com
Adfactors PR
NASSCOM
Four
Soft is a member of National Association of Software and Services Companies,
the premier trade body and the chamber of commerce of the IT software and
services industry in India. NASSCOM is a truly global trade body with around
850 members, of which nearly 150 are global companies from the US, UK, EU,
Japan and China. NASSCOM's member companies are in the business of software
development, software services, and IT-enabled/BPO services.
Aims and Objectives
The primary
objective of NASSCOM is to act as a catalyst for the growth of the software
driven IT industry in India. Other goals include facilitation of trade and
business in software and services, encouragement and advancement of research,
propagation of education and employment, enabling the growth of the Indian
economy and provide compelling business benefits to global economies by global
sourcing. NASSCOM also endeavors to leverage IT and narrow the digital divide
in India and enable her citizens to enjoy the benefits of IT.
NASSCOM is achieving its objectives by following a seven
fold strategy:
- Partner
the Government of India and State Governments in formulating IT policies
and legislation. Partner with global stakeholders for promoting the
industry in global markets.
- Strive for
a thought leadership position and deliver world-class research and
strategic inputs for the industry and its stakeholders.
- Encourage
members to uphold world class quality standards. · Strive to uphold
Intellectual Property Rights of its members.
- Strengthen
the brand equity of India as a premier global sourcing destination
- Expand the
quantity and quality of the talent pool in India
- Continuous
engagement with all member companies and stakeholders to devise strategies
to achieve shared aspirations for the industry and the country.
About HYSEA
The Hyderabad
Software Exporters Association (HYSEA) is an registered apex body representing
the software industry in Andhra Pradesh under the Andhra Pradesh Public
Societies Registration Act. HYSEA aims to promote co-operation and good
business practices among the members by representing and resolving issues and
problems affecting the business interests of the member companies. The current
membership of the Association is 210.
Vision of HYSEA
To position
Andhra Pradesh as the leading intellectual capital of the world, by nurturing
entrepreneurship, research and innovation, to achieve global excellence in IT
products and services.
A Brief History
HYSEA was
started in 1991, by 15 individuals. These individuals were CEO's of software
companies who saw the potential of IT and how it could change the face of our
economy and state. And it began trekking the path determined to help the
nascent industry in Hyderabad, find its feet and spread its wings across the
world. Like most great ideas, its beginning was humble. Helping software
companies overcome their teething problems by providing them with guidance and
support. HYSEA’s over the years has expanded to playing a pivotal role in
helping the government formulate appropriate policies and extending help in the
creation of simpler and more effective procedures needed for the growth of the
industry.
HYSEA - First Decade of Service
Decennial celebrations
of Hyderabad Software Exporters Association held on October 12, 2001 were
marked by nostalgia and a sense of achievement. At the national level, NASSCOM
started its activities in December 1988, and the Software Technology Parks of
India, Hyderabad (STPI-H), was set up in 1991. The year saw the wave of
liberalization, and deregulations, which had far-reaching effect on the Indian
economy. Equally, the end of 1992 brought about far-reaching changes in the
STPI, and STPI-H started functioning as an independent local unit with a
Governing Board. Against the backdrop of turbulence caused by structural
changes in the economy, and in particular keeping in view the greater focus on
IT, the need for the creation of an organization representing the interests of
the STPI-H registered companies was felt. The success story of HYSEA can be
traced back to that eventful day on August 28, 1991 when representatives of 15
fledglings STPI (H) registered companies met and decided to start the
association. Until 1996, membership of the association was less than twenty.
Today HYSEA has on its rolls about 210 companies including such industrial
giants as Microsoft, Oracle, G.E.Capital, T.C.S, Infosys, Satyam Computers etc.
NASSCOM, the sole representative of Software Industry and Services, in the
country has a membership of 752. There is no other state level association
working for the development of software industry. This is the unique feature of
HYSEA. As early as 1995, HYSEA requested the setting up of Center for Software
Excellence, Institute for Information Technology and International airport at
Hyderabad. HYSEA formed S.I.G. (Special Interest Group), which prepared a Draft
Information Technology Policy for the Government of Andhra Pradesh, leading to
the issue of Government orders on the incentives for I.T. training institutes
and publicized its observations in the newspapers for the benefit of the
students and their parents. HYSEA collaborated in the implementation of the
'Olive Project' and in the creation of OLIVE database with STPI, and the
Government of A.P., for U.S. Consulate, Chennai. Due to the efforts of HYSEA,
the Government set up a Consultative Committee, under the department of
Information Technology and Communications (I.T.C.) to speed up implementation
of the incentives announced by it. President and Secretary of HYSEA represent
the association in the committee and on number of occasions their contribution
to the deliberations of the committee were acknowledged and appreciated by the
Department. Another major worthy achievement of HYSEA, which many of its
members and most of the representatives of the industry are not aware of, is to
get HITEC City area of Madhapur declared as “Notified Area” What has been
achieved is now part of history. HYSEA has a very ambitious agenda and a clear
road map for the future. Construction of HYSEA office building, Cyber Park,
HYSEA ‘Techno Township’ are in the program. Software Industry in A.P. now has
an organization built, tried and tested. The credit for building such an
organization goes to the pioneers of the industry and the earlier office
bearers of the association.
HYderabad
Software Exporters Association
CHANGES
TO SHARE CAPITAL
During
the year under review the company has acquired companies in Singapore & Malaysia
(Cash and stock deal) and a major acquisition of US$ 22.00 million in UK (cash
deal). To finance the said acquisitions and part fund its working capital
requirements, the company has made a private placement to
Kotak
SEAF Fund (Managed by Kotak Mahindra Bank) and allotted shares towards purchase
consideration to shareholders of companies acquired. During the year the
paid-capital of the company was increased from Rs. 159.299 Millions to Rs.
180.876 Millions by conversion of 2,400 partly paid to fully paid equity shares
and fresh allotment of 43,12,855 equity shares on preferential basis.
This
includes:
i.
Allotment
of 39,49,447 equity shares of Rs. 5 each at a premium of Rs. 58.30 per shares
to India Growth Scheme of Kotak SEAF India Fund on preferential basis,
ii.
ii.
Allotment 1,46,52 equity shares of Rs. 5/-each at a premium of Rs. 58.30 per
share to GMKH Automation BV, Netherlands against acquiring the entire business
of M/s.Cargomate International B.V for consideration other than cash basis,
iii.
Allotment
of 2,16,884 equity shares of Rs. 5./- each at a premium of Rs. 58.30 per share
to Skyvest International Ltd, Singapore against acquiring entire business of
M/s. Comex Frontier Pte. Ltd, Singapore for consideration other than cash
basis.
During
the year under review, the Authorized Share Capital of the company was also
increased from Rs. 25 Millions to Rs. 35 Millions.
BUSINESS PERFORMANCE
i. Result of Operations
During
the financial year 2005-2006, Company achieved strong business growth, and was
successful in delivering high value to customers. During the year under
review company acquired UK Major
Transport & Logistics, division of UK listed Company and Comex Frontier
Pte.Ltd, Singapore. Company continuous to grow both organically and
inorganically and shall continue the same in future also.
ii. Revenues
Total
income in financial year 2005-06 is Rs. 244.04 Millions (Previous year Rs.
171.17 Millions) and Rs. 942.18 Millions as per the Consolidated Accounts
(previous Year Rs. 212.52 Millions).
Operating
Profit at Rs. 60.45 Millions (previous year Rs. 39.35 Millions) and Rs. 127.55
Millions as per Consolidated Accounts (previous year Rs.59.96 millions) Profit
after tax is Rs. 41.89 Millions or 17.17% of total income (Rs. 53.86 Millions
or 5.70% of total income as per Consolidated Accounts) and for the Previous
year Rs. 28.26 Millions amounting to 16.51 % of total income (Rs. 41.46
millions or 19.14% of total income as per Consolidated Accounts).
With the
acquisitions of UK Major Transportation and Logistics Solutions Company and
Comex Frontier, company became the
market leader with large international client base including majority of the
top largest Transportation & Logistics companies of the world, with
increased product offerings to the clients and increased clients base across
the globe. company continues to grow
towards becoming the Industry leader in this domain, leveraging its excellence
in technology, domain and processes.
Europe
has increased to be the major contributor to consolidated revenues for the year
ended March 31, 2006 with nearly 64% of total consolidated revenues. North
America, Asia and India contributing 32%, 3.5%, 0.05% respectively.
Company
continue to get 80% of revenues from existing customers. Company added 5 new
clients during the year and 220 customers through acquisition of companies,
that included some of the Fortune 1000 companies, including some Logistics and
Transportation majors.
Company
continue adding space with 15,000 sq.f.t additional space at Cyber Towers,
Madhapur, Hyderabad office. The total space available space now stands at
33,000 sq.ft. The company has incurred capital expenditure of Rs. 20.21 million
for infrastructure & facilities, Rs. 265 million towards acquisition and
overseas office set-up. The company has incurred Rs. 28.30 million on R&D
expenses (Rs. 15.50 million previous year).
iii.
Liquidity
The
Company has raised Rs. 451.80 Million (approx.) as debt through its Subsidiary
in Netherlands towards acquisition of UK Major T&L division. company continues to generate cash from
operations and been able to manage working capital requirements and had cash
equivalents of Rs. 382.80 Million as on March 31, 2006. These funds have been
invested in fixed deposits and liquid mutual funds.
ACQUISITIONS
During
the year, the Company made the following international strategic acquisitions
towards attaining its goals of being global leader in logistic companies
i.
Acquisition of DCS Transport & Logistics, a division of DCS Pic Group: Company through its Wholly Owned Subsidiary
Four Soft B V in Netherlands acquired DCS Transport and Logistics, a Division
of DCS Group Pic. a UK headquartered Transport & Logistics Software
solutions with operations in UK, Netherlands, France, Germany and USA, for
approximately Rs 850 million in all cash deal. The size of cumulative business
volumes of the operations is approximately Rs 1200-1250 million.
DCS
T&L division was an established global player with strong presence in the
European with almost 20% market share. The acquisition of DCS gives Four Soft
the size of a global player and for all existing and potential customers a
local partner to cater to their needs with strong local teams.
This
acquisition establishes Four Soft as the market leader with large international
client base including majority of the top twenty Transportation & Logistics
companies of the world.
ii.
Acquisition of Comex Frontier
Company
acquired Comex Frontier Pte Ltd, a Singapore based Software Solutions provider
and MY Comex Sdn Bhd, a Malaysian eCommerce solutions provider for Logistics.
This
acquisition takes Four Soft a step closer to its long term objective of
providing seamless enterprise solutions or the highly distributed Supply Chain
Execution Domain. The synergy of similarity in technology, domain expertise and
strong customer relationships combined with Four Soft's technological prowess
and proven delivery capability ensures that the high quality solution reaches
the customers in quick time. This acquisition enables Four Soft consolidate its
operations in Asia Pac through increased
reach
into new markets of Japan and China and also penetrate new verticals like
distribution.
SUBSIDIARIES
Company
has four subsidiaries; Four Soft LLC, USA, Four Soft B.V Netherlands, Four Soft
Singapore Pte Ltd. and Four Soft Malaysia Sdn Bhd. and four step down
subsidiaries Four Soft Netherlands B.V, NL Four Soft UK Ltd., UK, Four Soft
Germany GmBH, Germany, Four Soft USA Inc. USA.
i.
Four Soft LLC, USA
Four Soft
LLC, was incorporated as a 100% wholly owned subsidiary in 2001, to address
implementation projects for US customers. The company has generated revenues of
Rs. 14.31 million, with a net loss of Rs. 0.92 million.
In
September' 2005, H.B.UIrich Inc. was acquired and renamed as Four Soft USA
Inc., during the year the company serviced 57 clients and generated revenues of
Rs. 99..50 million, with a net toss of Rs. 8.30 million. There are 41 employees
working in both the US entities.
ii.
Four Soft B.V Netherlands
In
September' 2004, the company acquired CargoMate international B.V and the same
was renamed as Four Soft B.V The company generated revenues of Rs. 58.00
million, with a net loss of Rs. 15.00 million, for the year 31 st March, 2006.
The company has serviced 40 clients and has 12 employees working from
Netherlands.
During
the year, the company acquired the DCS T&L division with four entities for
a 100% cash consideration of US$ 19.00 million, the acquisition was part
financed through debt funding of GBP 5.72 million from leading Indian bank,
based of UK.
The
Company along with all its step down subsidiaries Four Soft UK Ltd., Four Soft
Netherlands B.V Four Soft Germany GmBH and Four Soft USA Inc., for the seven
months period have generated revenues of US$ 11.61 million and Net Profit of
US$ 0.76. There are a total of 175 customers serviced by the subsidiaries and
180 associates working from UK, NL, Germany and USA.
iii.
Four Soft Singapore Pte. Ltd
In May1
2005 the company acquired Comex Frontier Pte Ltd. (renamed as Four Soft Singapore
Pte Ltd.) The company has serviced 42 customers and has 23 employees working
from Singapore. The Company generated revenues of SG$ 1.65 million, with a net
loss of SG$ 1.62 million. The company is expected to break even in next 12
months period.
iv. Four
Soft Malaysia Sdn Bhd
In May
2005, the company acquired MY Comex Sdn. Bhd. (renamed as Four Soft
Malaysia Sdn Bhd.). The company generated revenues of RM 0.38 million, with a
net loss of RM 0.09 million. The Cornpany is expected to break even in next 12
months period.
INDUSTRY
SOLUTIONS
At
present the company offers solutions in the areas of Freight forwarding
industry, Customs brokerage, Contract Logistics, Shipper Logistics and
Services. Products in Freight forwarding industry includes eTrans, iLogistics,
eSupply and eTrans SME. Services include Consulting, Software Development and
System Integration & Implementation.
The
Financial Reports of all the subsidiaries of the Company viz. Four Soft LLC,
USA, Four Soft B.V Netherlands, Four Soft Singapore Pte Ltd, Four Soft Malasia
Sdn Bhd have been attached to this report as required under section 212 of the
Companies Act, 1956
Secured Loans
Finance Lease Obligation (secured by underlying leased
assets) 31.03.2006 – Rs 2.704 Millions
Fixed Assets
- Computer
- Office
Equipment
- Furniture
and Fittings
- Building
- Lease Hold
Improvements
- Intangibles
- Software
Investments
a.
Pursuant to the terms and conditions of the amended share purchase agreement
for acquisition of 100% shares of Four Soft B.V. The Netherlands (formerly
known as CargoMate B.V), the Company has paid an additional purchase
consideration of Rs. 3.710 Millions to GMKH Automation (the seller). The
carrying value of the Company's investment in Four Soft B.V, is adjusted to the
extent to such additional consideration.
b. In May
2005, the Company had entered into a Share Purchase Agreement with Skyvest
International Limited, Singapore for purchase of 100% outstanding shares of
Comex Frontier Pte Ltd., Singapore (renamed as Four Soft Singapore Pte Ltd.)
and MyComex Sdn. Bhd., Malaysia (renamed as Four Soft Malaysia Sdn. Bhd) in
consideration not exceeding of SG $ 2,100,000, beside, the price protection as
stated below. Further, while the fixed purchase consideration of SG$ 2,100,000
has been duly accounted for, the differential price, if any, will be determined
and accounted based on the average revenues of the
acquired
entities over a period of 36 months ending March 31, 2007.
In
respect of purchase consideration payable in the form of equity shares of the
Company and where the actual issue price, determined in accordance with the
relevant guidelines issued by the Securities and Exchange Board of India
("the SEBI"), is higher or lower than Rs. 42, the price protection,
offered up to maximum of Rs. 8 per share shall be paid in cash. No liability
has been recorded for such price protection as the actual liability, if any
would be determined only at the time of issue of shares as on October 2006 and
October 2007, as per the terms of share purchase agreement.
c. The
Company has acquired 100% outstanding shares of Four Soft B.V. (Formerly known
as "CargoMate B.V, The Netherlands) and Four Soft Singapore respectively
(Formerly known as Comex Frontier Pte. Ltd, Singapore) for an amount of
Rs.83.501 Millions and Rs. 56.976 Millions respectively. As at March 31, 2006
the net worth of these acquired entities are substantially
SOLUTIONS
4S provides cutting
edge solutions, both readymade (Products) and tailor-made (Services) for the
supply chain industry. 4S uses the power of leading edge internet technology so
companies can quickly and affordably realize the full power and potential of
their operations. With over 300 customers across 120 countries and 50,000
users, 4S is one of the top solution providers in the supply chain domain. 4S
has over 10 development centers worldwide to aid the delivery of global
solutions with a regional flavor. Added advantage with 4S is the presence of
strong domain skill set in major regions of the world like North America, EU &
Asia.
Products
4S products are used by over 300 customers worldwide who also include 10 among
the top 20 freight forwarders worldwide for their core operations. 4S gives you
a range of ready made solutions from a shipper's to a service provider's
perspective.
Services
No two companies follow the same processes especially in the supply chain
industry. Realizing this, 4S provides custom made solutions for companies as
per their regional or global requirements- through strong domain and regional
expertise.
CUSTOMERS
At Four Soft,
customers are considered as one of the most important assets, and the goal is
to exceed their expectations as an on going process on product quality,
customer service, and support. Customers are critical to our long-term success,
and company is continually seeking new and creative ways to build and enhance
our relationships with them.
FACT
SHEETS
Four Soft Limited
(FSL) was established, by Mr. Palem Srikanth, with an objective to build the
enterprise software/IT solutions in supply chain process management using
advanced web technologies. FSL's unit at HITEC City, Hyderabad is registered as
100% Export Oriented Unit under Software Technology Park scheme of the Govt. of
India. FSL was converted into a Public Limited Company in April 2003.
While focusing on the development of software products for Supply-Chain Process
Management, FSL offers software development and consultancy services in the
same field of Supply Chain Process Management in the global marketplace.
Founded
Four soft was founded in 1999 by Mr. Srikanth Palem, a Graduate from Stanford
University.
Incorporation
Four Soft was initially incorporated as Four Soft Private Ltd., in December,
1999 at Hyderabad in the State of Andhra Pradesh (India).
Employees
FSL presently employs over 950+ personnel at various locations in India and
abroad.
Corporate Headquarters
Four Soft Limited
5Q1A3, Cyber Towers, Hitech City, Madhapur, Hyderabad –
500033, India
Tel. no – 91-40-23100600/601
Fax No – 91-40-23100602
E-mail : investorinfo@four-sodt.com
Financial
Performance
The consolidated
operating revenues are at Rs. 947.70 Million for FY06 compared to Rs. 216.40
million for FY05. The Gross Profits stood at Rs. 129.60 Million for FY06
compared to Rs. 59.20 Million for FY05. FSL is a consistent profit and dividend
paying company since inception. The net profit grew from Rs. 41.50 million in
FY05 to Rs. 63.10 million for FY06. The Earnings per Share (EPS) of the Company
stood at Rs. 1.90 for FY06 compared to Rs. 1.35 for FY05. As at 31/03/2006,
networth of FSL is Rs 751.00 million.
Investor Relations Department
5Q1A3, Cyber Towers, Hitech City, Madhapur, Hyderabad – 500033, India
Tel : 91-40-23100600/601
Fax : 91-40-23100602
e-mail : investorinfo@four-soft.com
Four Soft Limited
(NSE: "FOURSOFT" BSE: 532521) is an Enterprise Solutions Company that
develops innovative software products, and provides IT consultancy services for
the logistics and supply chain management marketplace. It is promoted by
technocrat entrepreneurs from different parts of the world. Company’s
state-of-the-art software development centers are located in different
geographical locations:
- Australia
: Sydney
- England
: Nottingham, Leeds & Liverpool
- India
: Hyderabad & Pune
- Scandinavia
: Denmark
- Singapore
: Singapore
- The
Netherlands : Dordrecht
- USA
: New York
Our Hyderabad
development centre is spread over 60,000 sft and accommodates approximately 600
employees. Our sales and support offices are located across Asia, Australia,
Europe, and North America.
Company has a team of
highly skilled IT professionals providing solutions and products for Logistics,
Freight Forwarding, Transportation, Distribution and Supply Chain Process
Management. Four Soft's Offshore Development center services clients across the
Globe. The offshore presence enables us to deliver significant cost benefits to
customers in terms of resources as well as infrastructure.
Four Soft is a listed
company on the National Stock Exchange (NSE) and The Stock Exchange, Mumbai
(BSE). Kotak India Growth Fund and UTI Venture Capital Fund are amongst the
large financial institutions that have invested in the company.
CMT REPORT [Corruption,
Money laundering & Terrorism]
The Public Notice
information has been collected from various sources including but not limited
to: The Courts, India Prisons Service, Interpol, etc.
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.44.14 |
|
UK Pound |
1 |
Rs.
86.79 |
|
Euro |
1 |
Rs.
57.44 |
SCORE
& RATING EXPLANATIONS
|
SCORE
FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
63 |
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major
sections of this report. The assessed factors and their relative weights (as
indicated through %) are as follows:
Financial condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history (10%) Market
trend (10%) Operational
size (10%)
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/normal. |
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 |