MIRA
INFORM REPORT
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Report Date : |
02.03.2007 |
IDENTIFICATION
DETAILS
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Name : |
3I INFOTECH LIMITED |
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Registered Office : |
Tower 5, 3rd to 6th Floors, International
Infotech Park, Vashi-400703, Navi Mumbai-400703, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
11.10.1993 |
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Com. Reg. No.: |
11-74411 |
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CIN No.: [Company
Identification No.] |
L67120MH1993PLC074411 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMI02122B |
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PAN No.: [Permanent
Account No.] |
AAACI5205Q |
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Legal Form : |
Public Limited Liability Company. The Company’s shares are listed on
Stock Exchanges. |
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Line of Business : |
Provides Technology Solutions |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 14750000 |
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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 and reputed company having fine track.
The company is progressing well. Directors are reported as experienced and respectable
businessmen. Trade relations are reported as fair. Business is active.
Payments are usually correct and as per commitments. Fundamentals are strong and healthy. The company can be considered normal for business dealings at usual
trade terms and conditions. The company can be regarded as a promising business partner in a
medium to long-run. |
LOCATIONS
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Registered Office : |
Tower 5, 3rd to 6th Floors, International Infotech
Park, Vashi-400703, Navi Mumbai-400703, Maharashtra, India |
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Tel. No.: |
91-22-67928090 |
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Fax No.: |
91-22-67928094 |
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E-Mail : |
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Website : |
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Corporate Office : |
Akruti Centre Point, 6th
Floor, M.I.D.C Central Road, Next to Marol Telephone Exchange, Andheri
(East), Mumbai - 400 093, India |
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Tel. No.: |
91-22-39145700 |
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Fax No.: |
91-22-39145520 |
DIRECTORS
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Name : |
Hoshang N. Sinor, |
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Designation : |
Chairman |
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Name : |
Samir Kumar Mitter |
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Designation : |
Director |
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Name : |
Bruce Kogut |
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Designation : |
Director |
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Name : |
Madhabi Puri Buch |
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Designation : |
Director |
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Name : |
S. Santhanakrishnan |
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Designation : |
Director |
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Name : |
Suresh Kumar |
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Designation : |
Director |
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Name : |
V. Srinivasan |
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Designation : |
Managing Director & CEO |
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Name : |
Hariharan Padmanabhan |
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Designation : |
Deputy Managing Director |
KEY EXECUTIVES
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Name : |
Mr. Shivanand R. Shettigar |
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Designation : |
Compliance Officer and Company Secretary |
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Name : |
Amar Chintopanth |
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Designation : |
Chief Financial Officer |
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Name : |
Anirudh Prabhakaran |
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Designation : |
COO - South Asia |
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Name : |
Arvind Joshi |
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COO - United States |
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Name : |
Chandrashekar M. S. |
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Designation : |
CEO - Datacons Private. Limited. (100% subsidiary of 3i Infotech) |
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Name : |
Debneel Mukherjee |
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Designation : |
President - Asia Pacific |
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Name : |
Kalpesh Desai |
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Designation : |
COO - Europe, Middle East & Africa |
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Name : |
M. B. Battliwala |
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Designation : |
Senior General Manager |
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Name : |
Suheim Sheikh |
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Designation : |
MD - SDG Software Technologies Limited. (100% subsidiary of 3i Infotech) |
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Name : |
Padmanabhan Iyer |
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Designation : |
Senior General Manager |
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Name : |
Debasis Pal |
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Designation : |
General Manager |
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Name : |
Jagannath Rao |
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Designation : |
General Manager |
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Name : |
K. N. Madhava |
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Designation : |
General Manager |
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Name : |
Manoj Mandavgane |
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Designation : |
General Manager |
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Name : |
P. V. Sreenath |
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Designation : |
General Manager |
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Name : |
Rakesh Doshi |
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Designation : |
Senior Vice President - Europe, Middle East & Africa |
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Name : |
Ramakrishnan V. |
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Designation : |
General Manager |
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Name : |
Ravi Jagannathan |
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Designation : |
COO - United Kingdom |
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Name : |
Sanjeev Saxena |
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Designation : |
General Manager |
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Name : |
Shridhar Kane |
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Designation : |
General Manager |
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Name : |
Shivaprakash |
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Designation : |
Senior Vice President - United States |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Promoter’s
Holding |
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Promoters |
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Indian Promoters |
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ICICI Bank Limited |
9145238 |
17.24 |
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WITECO A/c ICICI Strategic Investments Fund |
19518095 |
36.80 |
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Foreign
Promoters |
-- |
-- |
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Persons acting in concert |
-- |
-- |
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Sub Total |
28663333 |
54.04 |
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Non Promoters Holding |
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Institutional Investors |
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Mutual Funds/UTI |
1229369 |
2.32 |
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Banks, Financial Institutions, Insurance Companies (Central/State Government
Institutions/ Non-government Institutions) |
3776200 |
7.12 |
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FIIs |
1833566 |
3.46 |
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Sub Total |
6839135 |
12.89 |
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Others |
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Private Corporate Bodies |
3806162 |
7.18 |
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Indian Public |
11001747 |
20.74 |
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Non Resident Indians/ Overseas Corporate Bodies (NRIs/OCBs) |
427210 |
0.81 |
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Any Other |
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Foreign Banks |
2304268 |
4.34 |
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Foreign Nationals |
3000 |
0.01 |
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Sub Total |
17542387 |
33.07 |
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Grand Total |
53044855 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Provides Technology Solutions |
GENERAL
INFORMATION
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Customers : |
v Hong
Leong Bank v Deutche
Bank v GSK v Liberty
Insurance v Prudential v Al
Ansari v ICICI
Bank v ICICI
Lombard v IDBI
Bank v Pidilite v National
Starch and Chemical v Pioneer v Polymers v AIG v Standard
Chartered v HP
Invent |
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Facilities : |
Secured Loans : (Rs. In
Millions)
Unsecured Loans
:
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
Lodha & Company Chartered Accountants |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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100000000 |
Equity Shares |
Rs.10/- each |
Rs.1000.000 millions |
|
300000000 |
Cumulative Preference Shares |
Rs.5/- each |
Rs.1500.000 millions |
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Total |
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Rs.2500.000
millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
|
53044855 |
Equity Shares |
Rs.10/- each |
Rs.530.450
millions |
|
200000000 |
6.35% Cumulative Preference Shares |
Rs.5/- each |
Rs.1000.000
millions |
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Total |
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Rs.1530.450 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
1530.450 |
1810.030 |
1809.800 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
2191.740 |
299.140 |
290.600 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
3722.190 |
2109.170 |
2100.400 |
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LOAN FUNDS |
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1] Secured Loans |
563.480 |
596.190 |
624.200 |
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2] Unsecured Loans |
2590.290 |
822.370 |
316.700 |
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TOTAL BORROWING |
3153.770 |
1418.560 |
940.900 |
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DEFERRED TAX LIABILITIES |
8.490 |
0.200 |
0.000 |
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TOTAL |
6884.450 |
3527.930 |
3041.300 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
2071.360 |
1651.450 |
1232.600 |
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Capital work-in-progress |
22.460 |
79.110 |
56.800 |
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INVESTMENT |
1009.410 |
866.480 |
958.400 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
0.340 |
0.340 |
8.900 |
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Sundry Debtors |
1083.510 |
575.890 |
543.600 |
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Cash & Bank Balances |
2494.590 |
93.680 |
104.000 |
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Other Current Assets |
587.160 |
411.020 |
0.000 |
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Loans & Advances |
527.100 |
595.110 |
707.600 |
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Total
Current Assets |
4692.700 |
1676.040 |
1364.100 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
657.980 |
619.330 |
509.900 |
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Provisions |
253.500 |
134.810 |
71.100 |
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Total
Current Liabilities |
911.480 |
754.140 |
581.000 |
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Net Current Assets |
3781.220 |
921.900 |
783.100 |
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MISCELLANEOUS EXPENSES |
0.000 |
8.990 |
10.400 |
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TOTAL |
6884.450 |
3527.930 |
3041.300 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
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Sales Turnover |
2760.340 |
2070.280 |
1926.000 |
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Other Income |
59.020 |
34.900 |
177.700 |
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Total Income |
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|
2103.700 |
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Profit/(Loss) Before Tax |
410.030 |
198.720 |
75.600 |
|
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Provision for Taxation |
17.900 |
22.660 |
(43.400) |
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Profit/(Loss) After Tax |
392.130 |
176.060 |
119.000 |
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Expenditures : |
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Cost of Goods Sold |
1444.490 |
1270.470 |
NA |
|
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Manufacturing Expenses |
NA |
NA |
804.300 |
|
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Administrative Expenses |
661.660 |
359.010 |
311.700 |
|
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Salaries, Wages, Bonus, etc. |
NA |
NA |
644.600 |
|
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Interest |
66.410 |
106.910 |
75.200 |
|
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Power & Fuel |
NA |
NA |
21.100 |
|
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Depreciation & Amortization |
236.770 |
170.070 |
233.600 |
|
|
Other Expenditure |
NA |
NA |
59.900 |
|
Total Expenditure |
2409.330 |
1906.460 |
2150.400 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2006 |
30.09.2006 |
31.12.2006 |
|
Sales Turnover |
782.3 |
801.2 |
785.5 |
|
Other Income |
40.7 |
40.5 |
445.4 |
|
Total Income |
823.0 |
841.7 |
1230.9 |
|
Total Expenditure |
584.1 |
587.6 |
784.2 |
|
Operating Profit |
238.9 |
254.1 |
446.7 |
|
Interest |
26.6 |
37.9 |
52.9 |
|
Gross Profit |
212.3 |
216.2 |
393.8 |
|
Depreciation |
74.1 |
74.7 |
35.2 |
|
Tax |
2.4 |
2.4 |
2.8 |
|
Reported PAT |
122.2 |
137.7 |
367.8 |
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 Nil Complaints disposed off during the quarter Nil
Complaints unresolved at the end of the quarter Nil 1. The above results have
been taken on record by the Board of Directors at its meeting held on July 20,
2006. 2. During the quarter ended, the Company issued 117,260 shares pursuant
to exercise of stock options. 3. During the quarter the Company acquired all
the shares in Datacons Private Limited from the existing shareholders of
Datacons Private Limited. The consolidated results of operations for the
quarter include the results of operations of Datacons Private Limited from the
date of acquiring of controlling interest in that Company. 4. During the
quarter the Parent Company acquired 100% shares of 3i Infotech (UK) Limited
from one of its subsidiary company. 5. Pursuant to revision in Accounting
Standard-15' Employee Benefits' and the transitional provisions therein, the
Parent Company has adjusted its General Reserves by Rs 34.50 million (net of
deferred tax of Rs 17.51 million) in order to give effect to the increase in
liability relating to gratuity and leave encashment up to March 31, 2006. 6.
The Company's US Subsidiary has received an arbitration award against it
amounting to USD 2.03 million in respect of a claim pursued by a customer. This
award has been received on July 14, 2006, which is under scrutiny. The legal
expenses, towards defending this claim is approximately USD 2 million. No
provision has been made in the accounts with respect to this in the current
quarter since the Company has insurance cover against claims & legal
expenses.
200609 Quarter 2
Notes
Expenditure Includes Cost of Revenue Rs 353.84 million selling, general
and admin. Expenses Rs 233.72 million Tax Includes Provision for Current Tax
(including Fringe Benefit Tax) Rs 2.40 million Deferred Taxes Rs 1.45 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 Nil Complaints disposed off during the quarter Nil
Complaints unresolved at the end of the quarter Nil 1. The above results have
been taken on record by the Board of Directors at its meeting held on October
19, 2006. 2. During the quarter ended, the Company issued 162,725 shares
pursuant to exercise of stock options. 3. During the quarter the Company
acquired 100% shares of G4 Software Technologies (India) Limited and 50.50%
shares of Delta Services (India) Private Limited. 3i Consulting Inc. (100%
subsidiary of the Company) acquired 100% shares of Edge Technologies Inc. The
consolidated results of operations for the quarter include the results of
operations of these companies. 4. Pursuant to revision in Accounting Standard -
15 'Employee Benefits' and the transitional provisions therein, the Company has
adjusted its General Reserves by Rs 34.50 million net of deferred tax of Rs
17.51 million in order to give effect to the increase in liability relating to
gratuity and leave encashment upto March 31, 2006. 5. As reported in the last
quarter, the Company's US Subsidiary had received an arbitration award against
it amounting to USD 2.03 million in respect of a claim pursued by a customer.
The subsidiary has preferred an appeal against the order. The management of the
subsidiary company is confident of recovery of the said amount from the
insurance company if the appeal fails. However, as a prudent practice, the
Company has provided one third of the total claim including legal expenses in
the current quarter. 6. During the quarter, the Company has initiated the
process of merger of its wholly owned subsidiaries viz. SDG Software
Technologies Limited and Datacons Private Limited with itself and the same is
in progress. 7. The Company has subsequent to the quarter end issued 1.50%
Foreign Currency Convertible Bonds (FCCB) aggregating to Ç15 million , at par
equivalent to Rs 884.55 million. 8. Dr Ashok Jhunjhunwala has been appointed as
an Additional Director at the Board Meeting. 9. Mr Bruce Kogut, Director, has
been appointed as a Member of the Audit Committee at the Board Meeting.
10.Items exceeding 10% of the total expenditure: (Rs. in Million) Staff cost -
249.82 Outsourced services & boughtout items - 117.68
200612 Quarter 3
Notes
Expenditure Includes Cost of Revenue Rs 364.15 million Selling, general
& admin. Expenses Rs 253.08 million Software Development Cost Rs 166.95
million Tax Includes Provision for Current Tax (including Fringe Benefit Tax)
Rs 2.80 million Deferred Taxes Rs (12.05) million Depreciation Includes
Depreciation Rs 35.15 million Depreciation written back due to change in
accounting policy Rs (88.81) 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 Nil Complaints disposed
off during the quarter Nil Complaints unresolved at the end of the quarter Nil
1. The above audited accounts have been approved by the Board of Directors at
their meeting held on January 17, 2007. 2. During the quarter, the Company
concluded an offering of Foreign Currency Convertible Bonds of Euro 15 million.
The bonds have been listed on the Singapore Stock Exchange. 3. During the
quarter, the Company issued 97,040 shares pursuant to exercise of stock
options. 4. During the quarter, the Group acquired 51% shares of E-Enable
Technologies Private Limited & all the shares of Rhyme Systems Holdings
Limited and Stex Software Private.Limited. The Group also acquired the business
of Genesis Imaging & Allied Technologies Private Limited. The consolidated
results of operations for the quarter include the results of operations of thes
companies. 5. During the quarter, the following overseas subsidiaries were
incorporated. 3i Infotech Holdings Private Limited, Mauritius; and 3i Infotech
Saudi Arabia LLC 6. Exceptional items comprise of re-instatement in value and
transfer of investment in / of a subsidiary - Rs 1250.00 million, Software
development costs / Software development meant for sale capitalized in earlier
years written off (due to change in accounting policy) Rs 1210.27 million,
reversal of deferred tax liability Rs 250.11 million and amount on account of
settlement of an arbitration / claims 169.78 million. 7. As reported earlier,
the Company's US Subsidiary had received an arbitration award against it
amounting to USD 2.03 million in respect of a claim pursued by a customer. This
Claim and the corresponding legal expenses have been fully provided and
disclosed as an exceptional item. 8. Due to what is stated in note (4) and (6))
above, the results for the current quarter/period are not comparable with the
results of the previous quarter/period. 9. The Company has filed merger scheme
with Bombay High Court for merging its subsidiaries SDG Software Technologies
Limited and Datacons Private Limited, effective April 01, 2006 and May 10, 2006
respectively. 10. Items exceeding 10% of the total expenditure: (Rs. in
Millions) Staff cost-224.95 Out sourced services & bought out items-139.73
KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity Ratio |
7.800 |
5.600 |
3.400 |
|
Long Term Debt-Equity Ratio |
7.300 |
4.900 |
2.600 |
|
Current Ratio |
27.800 |
17.600 |
15.800 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
10.100 |
9.800 |
11.500 |
|
Inventory |
78865.700 |
4500.700 |
2874.600 |
|
Debtors |
33.300 |
37.000 |
41.900 |
|
Interest Cover Ratio |
54.900 |
27.800 |
20.100 |
|
Operating Profit Margin(%) |
267.400 |
231.900 |
199.600 |
|
Profit Before Interest And Tax Margin(%) |
181.600 |
149.700 |
78.300 |
|
Cash Profit Margin(%) |
227.800 |
167.200 |
183.100 |
|
Adjusted Net Profit Margin(%) |
142.000 |
85.000 |
61.800 |
|
Return On Capital Employed(%) |
96.500 |
94.600 |
54.000 |
|
Return On Net Worth(%) |
183.400 |
133.100 |
65.400 |
STOCK PRICES
|
Face Value |
Rs.10.00/- |
|
High |
Rs.255.60/- |
|
Low |
Rs.250.00/- |
LOCAL AGENCY
FURTHER INFORMATION
Consolidated
financials of the Company and its subsidiaries:
The Company recorded a significant growth in its consolidated performance.
The total income grew to Rs.4240.47 million, registering a growth of 45% over
the previous year's revenue of Rs.2920.35 million. The gross margins moved from
43.3% of revenue in the previous year to 44.6% of revenue in the current year.
The profit before interest, depreciation and taxation (PBDIT) improved by 81%
to Rs.919.97 million in the current year compared to Rs.508.73 million in the
previous year. Consequently, PBDIT margins moved from 17.4% of revenue in the
previous year to 21.7% of revenue in the current year. The Company has posted a
consolidated profit after tax of Rs.576.64 million for the current year,
whereas it was Rs.321.14 million in the previous year, thereby recording a
growth of 79.56% in profit after tax. Basic EPS for the year has grown to
Rs.9.51, whereas it was Rs.6.89 in the previous year.
Financials of the
Company on a standalone basis:
The Profit & Loss Account of the Company shows a profit after
taxation of Rs.392.13 million. The disposable profit is Rs.519.38 million,
taking into account the balance of Rs.187.89 million brought forward from the
previous year, subject to adjustments pertaining to that year. It was decided
to transfer Rs.30.00 million to the reserves, out of the current profit.
BUSINESS OVERVIEW
Over the last few years, the Company has transformed itself from a pure
IT services company into a strong and dynamic IT solution provider offering a
strategic mix of business critical IT products and services. Further, the
Company is a very focussed player in the Banking, Financial Services and
Insurance (BFSI) segment deriving more than 75% of revenue from this segment.
The Company has a comprehensive range of IT products for Banking, Insurance,
Capital Markets and an Enterprise Resource Planning (ERP) product for certain
other verticals. Thus, the Company has put itself into a unique position in the
Indian Software Industry in terms of the number of software products, which
most of the other software companies cannot boast of. The Company has also put
in place technology service capabilities to cater to most of the technology
service needs of its customers. The Company's broad strategy is as under:
v
To have a business mix of 1:1 between IT products and IT services.
v
Product businesses to be driven predominantly by the Company's own
Intellectual Property Rights (IPRs).
v
Services businesses to be driven by value added services in the software
development, consulting, IT infrastructure and Systems Integration.
v
Products and System Integration to drive the penetration strategy on
which services will build. Independent services opportunities to be pursued
only in niche areas and niche geographies.
v
To pursue organic and inorganic growth.
By following the above strategy, during the year 2005-06, the Company
achieved a significant growth in each of its business segments and each of its
geographies as under:
BUSINESS SEGMENTS
Products:
'roduct segment comprising of following product lines contributed 46% of
the revenue for the year 2005-06.
Banking Banking products contributed 15% of the revenue for the year
2005-06. The Company with its rich domain expertise in the banking and
financial services sector, has a proven track record in delivering optimised
value propositions to customers in this space across the globe.
KASTLE"", secure banking solutions suite of the Company,
comprises an extensive range of enterprise banking products that cater to the
varied operations and departments of banks and other financial services
organizations. This gives customers a cost-effective option to go for multiple
solutions that can be integrated with each other, from a single vendor. The
KASTLE product suite consists of various modules apart from KASTLE Core Banking
such as Treasury, Asset Liability Management, Risk Management, Universal
Lending, Factoring, Anti Money Laundering and Wealth Management.
Insurance:
Insurance products contributed 18% of the revenue for the year 2005-06.
The PREMIA™ insurance management solutions suite is designed to proficiently
perform all the functions of an insurance company such as underwriting/policy
administration, claims management, reinsurance and accounting. This suite
comprises PREMIA Property and Casualty, PREMIA Health, PREMIA Life, PREMIA
General Insurance, PREMIA Takaful, PREMIA Broker and PREMIA Collaborator. The
suite covers various business classes such as property, general liability,
workers compensation, commercial auto, business owners policy, marine cargo,
personal auto, homeowners, health liabilities and related areas. The offerings
in this suite are used by some of the most recognized names in the global
insurance industry. The Company's long association with these established
organizations has benefited it in improvising its insurance management
solutions.
Capital Market Products:
Capital Market products comprise of iBOSS™ and AWACS™. With the
acquisition of SDG Software Technologies Private Limited, the Company entered
the field of Capital Market. The products acquired from SDG Software
Technologies Private Limited, iBOSS and AWACS have been well accepted in Middle
East market apart from existing clients in India and Singapore.
iBOSS is a comprehensive solutions suite for stockbrokers and traders,
giving them absolute control over the entire trading process from order to
settlement. It cost-efficiently streamlines and integrates all the operations
spanning front office, risk management and back-office.
AWACS - Advanced Warning And Control System - handles all the critical elements
of the surveillance process and provides a robust monitoring and warning
mechanism. It is designed to protect the integrity of capital markets from
fraud, manipulation and abusive practices and to foster open, competitive and
financially sound markets. Its astounding set of features and functions ensure
strict market vigilance and quick access to historical information, which is
essential to the user in decision-making.
AMLOCK™
During this fiscal year, the Company successfully launched AMLOCK, an
Anti Money Laundering and Fraud Detection Software. AMLOCK cuts across various
segments in the financial sector including Insurance, Banking and Capital
Market intermediaries.
Enterprise Solutions:
In Frost & Sullivan's recent report on "India Mid-Market ERP
Software", the Company has been considered as the Indian ERP solution
provider with the highest market share in India. It may also be mentioned that
the Company has been ranked amongst the top 5 Indian companies in Application
Software and in the Mid-Market ERP Software. The Company has achieved this
milestone within 3 years of entering the software product space. Enterprise
Solutions contributed 13% of the revenue for the year 2005-06.
ORION™ Enterprise, which is an ERP II solutions offering, is meticulously
structured to also meet clients' future needs in different processes ranging up
to Supply Chain Management (SCM), e-Procurement, e-Business and Customer
Relationship Management (CRM) applications.
ORION™ Advantage series, a pre-configured ERP solutions suite, is
specially designed for SMEs to save costs, time and resources from day one, in
order to deliver maximum Returns on Investment (ROI). Capitalizing on the
experience of almost a decade in serving different industries, the Company
presently has developed ORION Advantage packages, designed to match the
specific requirements of industries viz.
Pharmaceuticals, Chemicals, IT Distribution and Auto-ancillary.
ORION™ Xroadz™ - a premier integrated ERM solution that not only enables
to improve relationships using secure, multi-channel and unprecedented level of
interfaces, with the customers, suppliers, business partners and employees but
also assures enhanced measurable returns from each of these relationships. The
solution also helps in getting the best possible returns from investment in
back-end systems by extending its functions across Relationship Management,
Knowledge Management, SCM and e-Business.
Information Management:
Veda™ is an advanced Information Management software covering three key
information management areas - aggregation, organization and retrieval. Veda™
uses Semantic technologies to understand and integrate information, which is
available in different formats, structures and schemes and often stored in
multiple repositories.
IT Services:
The Company has a wide range of IT services offering. Services business
of the Company comprises of the following:
v
Customised Solution and maintainance
v
Enterprise Application Integration
v
System Integration
v
Managed Services
v
Business Process Outsourcing
v
e-Governance
IT Services business contributed 54% of the revenue for the year
2005-06.
GEOGRAPHIES
The Company has its business presence in about 45 countries. The
business operations of the Company are grouped under four different
geographies. While the Company is consistently exploring newer markets, the
existing major geographies are:
v
South Asia contributing 40% of the revenue.
v
Europe, Middle East & Africa contributing 25% of the revenue.
v
Asia Pacific contributing 7% of the revenue and
v
North America contributing 28% of the revenue.
FUTURE OUTLOOK
As indicated earlier, the Company has created a unique range of products
for the BFSI vertical and ERP. The Company's major products have multilingual
and multi currency capabilities. The Company has also diversified well in terms
of geographic presence. The Company aims to enhance its existing products,
expand the range of product offerings and increase product reach globally, by
continuous investment in enhancing the functionality of the products and also
by acquiring new products in BFSI segment to complement or bridge gap, if any,
in its offering to suit the market requirements. Similarly, the Company would
continue to expand its range of service offerings in order to increase business
from the existing clients and acquire new clients. To achieve this, the Company
would continue to invest in R&D capabilities, particularly with a view to
designing software engineering tools that enhance the ability to execute large,
end-to-end projects and develop software solutions that address clients'
changing needs. This would enhance the product innovation and mitigate the risk
of dependence on a few existing products. In addition to this, the Company
would also assess cross-selling opportunities to its existing customer base on
a continuous basis.
Apart from organic growth, acquisitions have been a crucial part of the
Company's growth strategy. The Company intends to evaluate on a case-by-case
basis, potential merger and acquisition targets that offer an opportunity to
expand business, capabilities or geographical reach and have manageable
integration risks. It has been the endeavour of the Company to spread its
operations globally as a risk mitigation measure.
The Company is aware of the importance of branding in the modern world.
Efforts are continuously on for developing and enhancing recognition of
Company's brands, to enhance the visibility and strengthen the recognition in
the global IT solutions industry.
The technology alliances for systems integration and joint product
development with leading local as well as global technology companies are being
strengthened which would assist in sales and delivery.
They believe that these measures would enable the Company to have a
robust growth in future.
ACQUISITIONS
During the year, the Company acquired SDG Software Technologies Private
Limited, a Hyderabad based software products company, having presence in the
products space catering to the banking and capital market industry. 3i Infotech
Inc., USA, a wholly owned subsidiary of the Company acquired FormulaWare Inc.,
a US-based software company which provides a robust Enterprise Resource
Planning (ERP) solution for the process manufacturing industry. 3i Infotech
Inc. has also acquired Innovative Business Solutions Inc., a US based IT
consulting company.
The name of Innovative Business Solutions Inc. was later changed to 3i
Infotech Consulting Inc. The businesses of these three companies have been
synergized with that of the Company to maximize the benefit arising out of the
acquisitions.
SUBSIDIARY
COMPANIES
Being a global IT company, the Company needs to be present across the
globe either through its subsidiaries or branch offices, depending upon
business plans and regulatory issues. To this end, the Company has incorporated
and acquired a number of subsidiaries in different countries.
During the year, the Company acquired SDG Software Technologies Private
Limited, which has a wholly owned subsidiary, SDG Software Technologies Pte.
Limited. 3i Infotech Inc., the wholly owned subsidiary of the Company in USA,
acquired Innovative Business Solutions Inc. and FormulaWare Inc. during the
year. Further, 3i Infotech (UK) Limited and 3i Infotech (Thailand) Limited were
incorporated as wholly owned subsidiaries of 3i Infotech Inc and 3i Infotech
Pte Limited., respectively.
The operations of 3i Infotech Pty Limited, Australia and Semantik
Solutions GmbH, Germany were merged with 3i Infotech Inc. and the Company
respectively. Both these subsidiaries are in the process of being wound up.
With the above, the Company has nine wholly owned subsidiaries in
aggregate, viz. 3i Infotech Inc., USA, 3i Infotech Pte. Limited, Singapore, 3i
Infotech SON BHD, Malaysia, 3i Infotech (UK) Limited, UK, 3i Infotech (Thailand)
Limited, Thailand, SDG Software Technologies Limited, India, SDG Software
Technologies Pte. Limited, Singapore, 3i Infotech Consulting Inc., USA
(formerly known as Innovative Business Solutions Inc.) and FormulaWare Inc.,
USA.
As per section 212 of the Companies Act, 1956, the Company is required
to attach the Directors' Report, Balance Sheet and Profit and Loss Account of
the subsidiaries to its Balance Sheet. The Company has made necessary
application to Central Government, which has the power to grant exemption from
this requirement, as the Company presents the audited consolidated accounts of
the Company and its subsidiaries in this Annual Report. The Directors believe
that the audited consolidated accounts, present a full and fair picture of the
state of affairs and financial conditions of the Company and its subsidiaries,
as is done globally. Accordingly, the Annual Report of the Company does not
contain separate financial statements of these subsidiaries, but contains
audited consolidated financial statements of the Company and its subsidiaries.
However, a statement of the Company's interest in the subsidiaries and a
summary of the financials of the subsidairies is given alongwith the
consolidated accounts. The annual accounts of the subsidiaries along with the
related information will be made available to the Members.
seeking such information at any point of time. The annual accounts of
the subsidiaries are also available for inspection during business hours at the
Registered Offices of the subsidiaries.
AWARDS AND
ACCOLADES
The efforts of the Company were appreciated globally and as a result,
the Company has won several awards during the previous year. The Company won
Growth Strategy Leadership Award for India ERP Software for SMB at the prestigious
Frost & Sullivan Technology Awards 2005 event, held in Mumbai, India. The
award recognizes companies that demonstrate an exceptional growth strategy in
the Information & Communications Technology (ICT) industry. The Company had
also won the 2005 Service Provider of the Year award at the 9th Annual Asia
Insurance Awards held in the Ritz Carlton Millenia, Singapore on September 26,
2005. This is an award to encourage and salute excellence in the insurance
industry. The award recognizes the Company's pioneering work, contribution and
commitment to the Insurance industry worldwide.
For the second successive year, the Company received the prestigious
"Partner Excellence Award for the Independent Software Vendor (ISV)
category" from Oracle Corporation. The Company has also been awarded the
Dubai Quality Appreciation Programme Award by the Dubai Quality Appreciation
Programme (DQAP) for its excellent business practices, growth strategy and
service to its customers and stakeholders.
Company’s fixed assets include Goodwill, Software Products, Land,
Buildings, Plant and Machinery, Computers, Furniture and Fixtures, Office
Equipments and Vehicles.
Website Details :
Profile
Subject is a global Information Technology company which provides
technology solutions to over 500 customers in more than 45 countries across 5
continents, spanning a range of verticals - Banking, Insurance, Manufacturing,
Contracting, Retail & Distribution and Government.
Subject offers a comprehensive range of software and IT
solutions, including packaged applications for the Banking, Financial Services
& Insurance (BFSI), Manufacturing, Contracting, and Retail &
Distribution industries. In addition, it offers a broad range of software
services such as Custom Software Development, IT Consulting, IS and IT Security
Consulting, Enterprise Application Integration (EAI), and specialized services
such as Product Re-engineering, Compliance Consultancy, Application
Rehabilitation and e-Governance, among others.
The Company's quality certifications include SEI CMMI Level
5 for its Software business and ISO 9001:2000 for its Infrastructure Services
and Business Process Outsourcing (BPO) operations.
The Company's Global Delivery Model provides for the best
resources to be drawn from its vast talent pool across the globe to offer
optimal solutions.
Their list of customers worldwide includes Prudential
Assurance, Finansa, AIG, Emirates Bank, RAK Bank, Hong Leong Bank, SBI Factors,
Oriental Insurance Company Limited, The National Health Insurance Fund,
Solidarity Islamic Insurance & Assurance Co., Commercial America Insurance
Company, National Takaful Insurance, Hirsch International Corporation, Pidilite
Industries among others.
The Company was promoted by the NYSE-listed ICICI Bank,
India's largest private sector bank.
Subject integrates its products and services to create
customized solutions to allow you to undertake technology-based business
transformation that allows reorganization in line with today's dynamic digital
business environment.
The Company offers the following range of enterprise
services and solutions to meet varying customer requirements:
Solutions
v Insurance
v Banking
v Capital
Market
v Mutual
Funds
v Enterprise
Resource Planning
v E-Governance
Products
Premia – Insurance Mangagement
Kastle –Secure Banking Solutions
AMLOCK – Anti Money Laundering and Fraud Detection
iBOSS – Integrated Broker Office Solutions Suite
AWACS – Stock Exchange Surveillance
MFund – Mutual Funds
Orion – Enterprise Resource Planning
XroadZ – Enterprise Relationship Management (ERM)
Veda – Recruitment Automation Solution
Data Scan Online – Document Content Management System
Services
v Managed
IT Services
v IT
Outsourcing
v Custom
Software Development
v Product
Re-engineering
v Application
Rehabilitation
v Compliance
Consulting
v Packaged
Application Implementation
v Enterprise
Application Integration (EAI)
v E-Governance
v Business
Process Outsourcing
v R&T
and Fund Accounting
v Data
Warehousing and Business Intelligence
They cater to customers though their global locations:
India (Corporate Office)
Asia Pacific
Europe, Middle East and Africa
United States of America
United Kingdom
Customers
Subject builds enduring relationships with its customers.
They serve over 500 customers across the globe, which demonstrates their
capabilities and quality of their products and services.
Some of their customers include:
v Hong
Leong Bank
v Deutche
Bank
v GSK
v Liberty
Insurance
v Prudential
v Al
Ansari
v ICICI
Bank
v ICICI
Lombard
v IDBI
Bank
v Pidilite
v National
Starch and Chemical
v Pioneer
v Polymers
v AIG
v Standard
Chartered
v HP
Invent
Partners
They combine products/technologies from global technology
leaders and combine them with their best-of-breed professional services to
create and rapidly deploy customized solutions for the unique requirements.
They have forged strategic partnerships with global industry-leading
organizations.
v Symantec
v Hp
Invent
v Redhat
v Oracle
v IBM
v Cisco
v Juniper
v Microsoft
v Nexus
News
Release
3i
Infotech, Oracle Launch Technology CoE for Insurance in Chennai
IT News Online - December 12,
2006 - 3i Infotech, a provider of IT solutions, has partnered with
Oracle to develop a Technology Center of Excellence for Insurance in Chennai.
The partnership gives 3i Infotech access to Oracle's network of partners in the
region as well as the ability to take advantage of Oracle's solutions.
The solutions developed at this center will be powered by
Oracle E-Business Suite, Oracle Database and Fusion Middleware technologies,
and targeted at the Europe, Middle East and Africa (EMEA) regions where 3i
Infotech is a leading provider of insurance solutions.
3i Infotech, a certified partner in the Oracle
PartnerNetwork, said that through this partnership, the companies would
endeavor to empower insurers by offering architecture-based technological tools
featuring Oracle E-Business Suite combined with 3i Infotech's Insurance
Solution, PREMIA. The development work being undertaken at the technology
center of excellence is aimed at helping customers in the insurance industry
better address strategic business challenges.
Hari Padmanabhan, Dy. Managing Director, 3i Infotech, said,
"This initiative highlights 3i Infotech's commitment to provide compelling
technology solutions with significant value-add to regional insurance
businesses. Through their relationship with Oracle they will gain access to
Oracle's extensive network of partners in the region as well as take advantage
of Oracle's innovative solutions."
"Through the Technology Center of Excellence for
Insurance they can complement their joint regional campaigns and provide their
growing customer base with unmatched global delivery capabilities," added
Padmanabhan.
3i Infotech has also recently been selected by Oracle to the
International ISV Program in EMEA. At the launch of the 'Technology Center of
Excellence for Insurance', the company demonstrated the integration of PREMIA
with Oracle E-Business Suite, built using Oracle BPEL (Business Process
Execution Language) Process Manager, a member of the Oracle Fusion Middleware
family of products.
"The insurance industry is a highly-regulated sector
therefore needs compliant, auditable systems, which are transparent and
secure," said Harry Stehrenberger, Vice President, Oracle Financial
Services, EMEA. "With Oracle E-Business Suite and 3i Infotech's PREMIA
they will provide customers a proof of concept which can be implemented in a
fully scalable manner."
"They will work closely with 3i Infotech's dedicated
team using a Service Oriented Architecture approach to build on their
end-to-end workflow-driven solutions," added Stehrenberger.
3i Infotech's PREMIA, has been widely deployed at over 100
sites worldwide including AIG, Liverpool Victoria, Liberty Mutual, Dryden
Mutual and Hallmark Insurance. The company's solutions, deployed on Oracle
Database 10g, are available in the most robust, scalable and secure environment
and can be implemented on a wide range of operating systems, providing
flexibility for IT investments.
3i
Infotech to Acquire UK based Rhyme Systems
3i Infotech Limited on October 20, 2006 has announced the
signing of an agreement to acquire UK based asset management software Company,
Rhyme Systems.
Close on the heels of the Liverpool Victoria Insurance
client win, the strategic acquisition of Rhyme Systems would complement the
Company's foray into UK’s lucrative BFSI market. Rhyme Systems, a profitable
Company with revenue of over 15 million pounds (equivalent to 28 million US
dollars) has eight of the top eleven UK private wealth asset management
Companies as its clients. Some of the prestigious clients are Brewin Dolphin,
Coutts RBS, Jupiter, M&G, Barclays and LCH Clearnet. Rhyme has two products
for the asset management industry, namely, rhymeSIGHT & Quasar and three
products for broking industry namely, Altimis, Fiscal and Arrow. These products
enable asset, fund and private wealth managers to achieve optimum performance
through market leading software solutions.
These products operate in the manufacturing and operations
elements of the asset management process, including portfolio management,
investment administration, clearing, settlement, order management and
accounting. This acquisition will be EPS accretive to the Company's
shareholders.
Commenting on the results and acquisition of Rhyme Systems,
Mr. V Srinivasan, Managing Director & CEO, of the Company said, "This
has been an exciting quarter for 3i Infotech both in terms of growth in revenue
as well as expansion of their solution offerings with acquisition of G4
technologies and Rhyme Systems" He further added, "The Rhyme Systems
acquisition is a move to further consolidate their position as a strong BFSI
player. They, as a solution provider, constantly evaluate their BFSI offering
vis-à-vis market demands and grow their business by filling the gaps in their
range of products and solutions. As is evident from the Company’s growth over
the past years, they are now well poised to be amongst the most aggressive and
fast growing Companies globally."
The Company has also announced the following:
v The
Company won the Asia Insurance Industry Award to Service Provider of the year
the second consecutive year.
v The
Company has also won the Frost & Sullivan Product Innovation Insurance
software award 2006.
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.44.49 |
|
UK Pound |
1 |
Rs.85.71 |
|
Euro |
1 |
Rs.58.53 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
9 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
|
69 |
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 EXPLANATIONS
|
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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|