MIRA
INFORM REPORT
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Report Date : |
03.04.2008 |
IDENTIFICATION
DETAILS
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Name : |
DATAMATICS TECHNOLOGIES LIMITED |
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Registered Office : |
117/120 SDF-IV, Seepz, Andheri (East), Mumbai - 400096, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
27.11.1919 |
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Com. Reg. No.: |
045205 |
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CIN No.: [Company
Identification No.] |
L72200MH1919PLC045205 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMD00735A |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are listed on
the Stock Exchange. |
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Line of Business : |
Service provider to the Electronic Publishing, Healthcare,
Tax & Financial Accounting, and Legal Industries. |
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 10377600 |
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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.
Trade relations are fair. Business is active. Payments are reported as
usually correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered/ Branch Office : |
117/120 SDF-IV, Seepz, Andheri (East), Mumbai - 400096, Maharashtra,
India |
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Tel. No.: |
91-22-66975300 |
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Fax No.: |
91-22-28291673 |
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E-Mail : |
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Website : |
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Branch Office : |
USA 80, Blanchard Road,
Burlington, MA 01803 Tel: 1-781-425-5240 Fax:1-781-425-5232
Tel: 1-734-525-4400 Fax: 1-734-525-4455 UK Datamatics Infotech Limited 8 The Square, Stockley Park, Uxbridge, UB11 1FW Tel: 44-208-610 6105 Toll Free: 44-800-635 0050 Fax: 44-208-610 6870 Germany Datamatics Technologies GmbH Nordring 17, 64347 Griesheim Tel: 49-6155–848614 Fax:49-6155–848615 Email ID: info@datamaticstech.de India Crompton House 3, M.G.R. Salai (K.H. Road) Nungambakkam Chennai - 600 034, India Tel: 91-44-3911 3333 Fax: 91-44-3911 3334 Knowledge Centre, Plot No.58, Street No. 17, MIDC, Andheri
(East), Mumbai (Bombay) - 400 093 Tel: 91-22-6753 5555 Fax: 91-22-2834 3669 Suyojit IT Park, Suyojit Commercial Complex Survey No.
804/A-1, Unit No. S1-3 Bombay-Agra Road, Nashik - 422 002, India Tel: 91-253-6457 370 |
DIRECTORS
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Name : |
Mr. Dr. Lalit S. Kanodia |
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Designation : |
Chairman |
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Name : |
Mr. Rahul L Kanodia |
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Designation : |
Vice Chairman |
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Name : |
Mr. Michael Thuleweit |
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Designation : |
Managing Director |
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Name : |
Mrs. Asha L Kanodia |
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Designation : |
Director |
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Name : |
Mr. Shahzaad S. Dalaal |
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Designation : |
Director |
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Name : |
Mr. Radhakrishna K. |
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Designation : |
Saraswat Director |
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Name : |
Mr. Sudhir C. Deshpande |
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Designation : |
Director |
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Name : |
Mr. Uday N. Salunkhe |
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Designation : |
Director |
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Name : |
Mr. Habil L. Khorakiwala |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Rahul L Kanodia |
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Designation : |
Vice Chairman and CEO |
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Name : |
Mr. Vidur Bhigilal |
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Designation : |
Executive Director and Chief Financial Officers |
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Name : |
Mr. Atul Srivastava |
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Designation : |
Senior Vice President and Head |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 30.09.2007)
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Shareholding of
Promoter and Promoter Group |
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Indian |
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Individuals/ Hindu Undivided Family |
65140 |
0.16 |
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Bodies Corporate |
27856300 |
68.41 |
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Relatives of Promoter Director |
47016 |
0.11 |
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Public
Shareholding Institutions |
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Mutual Funds/ Axis |
650000 |
1.60 |
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Financial Institutions/ Banks |
186090 |
0.46 |
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Non -
Institutions |
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Bodies Corporate |
3182801 |
7.82 |
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Individual shareholding nominal share capital up to Rs.0.100 Million |
6318790 |
15.51 |
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Individual shareholding nominal share capital in excess of Rs.0.100
Million |
1880348 |
4.61 |
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Any other
Specify |
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Clearing Members |
158746 |
0.38 |
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Foreign Nationals |
12500 |
0.03 |
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Non Resident Indians Repat |
86616 |
0.25 |
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Non Resident Indians Non Repat |
25490 |
0.06 |
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OCB |
247000 |
0.60 |
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Total |
40716837 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Service provider to the Electronic Publishing, Healthcare,
Tax & Financial Accounting, and Legal Industries. |
GENERAL
INFORMATION
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Bankers : |
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Banking
Relations : |
- |
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Auditors : |
Kanu Doshi and Associates Chartered Accountant Solicitors Crawford Bayley and Company Chartered Accountant |
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Subsidiaries : |
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CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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39000000 |
Equity Shares |
Rs.10/- each |
Rs.390.000 Millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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20358419 |
Equity Shares |
Rs.10/- each |
Rs.203.584 Millions |
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FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
203.600 |
203.100 |
203.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
2187.200 |
2045.700 |
1866.200 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
2390.800 |
2248.800 |
2069.200 |
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LOAN FUNDS |
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1] Secured Loans |
0.000 |
0.000 |
0.000 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
0.000 |
0.000 |
0.000 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
2390.800 |
2248.800 |
2069.200 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
298.700 |
284.500 |
252.200 |
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Capital work-in-progress |
5.000 |
2.100 |
0.000 |
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INVESTMENT |
1680.200 |
1523.500 |
1450.800 |
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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 |
0.000
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0.000 |
0.000 |
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Sundry Debtors |
418.900
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425.300 |
392.200 |
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Cash & Bank Balances |
66.400
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33.800 |
32.900 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
78.700
|
118.000 |
92.100 |
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Total
Current Assets |
564.000
|
577.100 |
517.200 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
144.000
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66.800 |
77.300 |
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Provisions |
13.100
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71.600 |
81.100 |
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Total
Current Liabilities |
157.100
|
138.400 |
158.400 |
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Net Current Assets |
406.900
|
438.700 |
358.800 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
7.400 |
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TOTAL |
2390.800 |
2248.800 |
2069.200 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
684.200 |
616.300 |
609.700 |
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Other Income |
59.300 |
122.800 |
55.900 |
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Stock Adjustment |
0.000 |
0000 |
(4.700) |
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Total Income |
743.500 |
739.100 |
660.900 |
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Profit/(Loss) Before Tax |
217.800 |
296.100 |
308.600 |
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Provision for Taxation |
10.300 |
8.600 |
5.000 |
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Profit/(Loss) After Tax |
207.500 |
287.500 |
303.600 |
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Expenditures : |
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Power & Fuel Costs |
16.800 |
14.700 |
10.100 |
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Manufacturing Expenses |
89.400 |
86.200 |
63.800 |
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Employee Costs |
278.000 |
226.100 |
170.700 |
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Selling and Administrative Expenses |
93.900 |
77.100 |
75.500 |
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Miscellaneous Expenses |
6.200 |
6.000 |
4.900 |
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Interest and Financial Charge |
1.600 |
1.600 |
2.000 |
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Depreciation & Amortization |
39.800 |
31.300 |
25.300 |
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Other Expenditure |
0.000 |
0.000 |
0.000 |
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Total Expenditure |
525.700 |
443.000 |
352.300 |
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QUARTERLY RESULTS
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PARTICULARS |
30.06.2007 1st
Quarter |
30.09.2007 2nd
Quarter |
31.12.2007 3rd
Quarter |
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Sales Turnover |
127.100 |
134.000 |
159.600 |
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Other Income |
21.600 |
21.600 |
24.700 |
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Total Income |
148.700 |
155.600 |
184.300 |
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Total Expenditure |
119.100 |
120.000 |
134.400 |
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Operating Profit |
29.600 |
35.600 |
49.900 |
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Interests |
0.000 |
0.000 |
0.000 |
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Gross Profit |
29.600 |
35.600 |
49.900 |
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Depreciation |
10.700 |
10.900 |
12.000 |
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Tax |
3.000 |
4.300 |
5.300 |
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Reported PAT |
15.900 |
20.400 |
32.600 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
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PAT / Total
Income |
(%) |
27.91
|
38.90 |
45.94 |
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Net Profit Margin (PBT/Sales) |
(%) |
31.83
|
48.04 |
50.61 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
25.25
|
34.37 |
40.11 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.09
|
0.12 |
0.15 |
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Debt Equity Ratio (Total Liability/Networth) |
|
0.06
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0.06 |
0.08 |
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Current Ratio (Current Asset/Current Liability) |
|
3.59
|
4.17 |
3.26 |
LOCAL AGENCY
FURTHER INFORMATION
BUSINESS:
Subject is a standalone basis; revenues grew from Rs.616.28
million to Rs.684.23 million compared to the previous year with a growth of
11%. The consolidated revenue also grew from Rs.1,392.48 million to Rs.1,486.74
million with a 6.77% growth. The standalone profit after tax was at Rs.207.51
million as compared to Rs.287.54 million. The financial year 2005-06, on
account of sale of the Company's 20% stake in Knowledge works; Global Limited
(KGL) to Cadmus Knowledge works International Limited (Cadmus), The Company
made a profit of Rs.65.88 million. Excluding this, the profit after tax declined
by 6.4%, due to the increase in manpower costs, and the appreciation of the
Rupee.
The consolidated profit after tax was at Rs.130.74 million
compared to Rs.140.80 million excluding the profit on the sale of the joint
venture with KGL to Cadmus. Moreover, the appreciation of the Rupee had a
negative, impact of Rs.9.20 million on the top line as well as the bottom line.
It is envisaged that further negative impact will be felt in the ensuing
quarters due to the appreciation of the Rupee.
The Company continued to focus on top customers in its three primary lines of
business vim back office processing, content management and consulting services
in the non-voice BPO segment. The initiative to move to a new facility at
Chennai has helped the Company to balance the production between Mumbai and
Chennai and the same was received well by the customers.
EXPANSION
PLAN:
The Company has acquired 18,400 sq. ft. of property at Nashik and is planning
for the purchase of another 20,000 sq. ft. approx. within the same premises at
Nashik. The infrastructure development at the acquired property at Nashik is in
progress. The facility is expected to commence production by mid o August 2007.
The Company is also in the process of identifying land for a campus at Nashik.
The production facility centre at Nashik will offer significant cost advantages
to the Company. The Company expects a reduction in per employee cost and lower
attrition rate in Nashik as compared to facilities in the metros.
INVESTMENT
IN OVERSEAS SUBSIDIARIES:
The Company has business transactions across the Globe and has subsidiaries in
the US –Subject, UK Datamatics Technologies UK Limited, and in Germany
Datamatics Technologies GmbH. The Company has made investments worth
Rs.630,648,850/- and also extended loans of Rs.12,169,542/- to these
subsidiaries. The year under review, the Company infused additional capital of
USD 1,500,000 in Datamatics Technologies Inc.
This year the Company performed better in its UK operations by increasing its
revenues from Rs.15.52 million to Rs.116.62 million with a growth of 651%.
Efforts to turnaround the Company's U.S. and German operations are still in
progress and good growth is expected going forward.
RECOGNITIONS AND CERTIFICATIONS:
The Company has received the following awards and certification during
the year 2005-2006:
- IMC Ramkrishna Bajaj National Quality Award
2006:
The Company has won the prestigious Ramkrishna Bajaj National Quality Award
[RBNQA] for 2006 in the Service Category from amongst 300 companies and after
multiple levels of evaluation by trained examiners. The RBNQA is one of India's
most prestigious quality and business excellence awards and was instituted by
the Indian Merchants' Chamber (IMC) in 1995. Modelled on the Malcolm Baldrige
National Quality Award in the US, it is awarded to companies that demonstrate
outstanding customer orientation and quality management systems.
Consistent with the principles of continuous improvement, the award's criteria
have been revised and improved every year. The IMC follows a rigorous
evaluation procedure while selecting winners. The IMC Ramkrishna Bajaj National
Quality Award aims to:
·
Promote quality awareness and practices among Indian
businesses.
·
Recognize quality achievements of Indian companies.
·
Publicize successful quality strategies and programs.
This is the first time a BPO organization has won this award. The Company
intends to use the scoring criteria of the IMC RBNQA to benchmark itself with
the best in the industry globally. Customer delight and continual improvements
have always been driving factors propelling the Company to strive incessantly
towards perfection in the spheres of their business. Being bestowed with this
award is a public recognition of our sincere efforts.
- Lifetime Achievement Award:
Dr. Lalit S. Kanodia, the Chairman of the Company, has been honored with a
Lifetime Achievement Award by the ITM Group of Institutions as part of its
Enterprise Scions Awards for Entrepreneurship Excellence.
- Other Awards:
(i) Ranked in the top 50 best-managed outsourcing vendors for the second
consecutive year by 'The Black Book of Outsourcing'.
(ii) Ranked 1st globally amongst publishing, editorial and print service
providers by 'The Black Book of Outsourcing'.
(iii) Ranked 3rd globally amongst global document process outsourcing
providers by 'The Black Book of Outsourcing'.
QUALITY:
Certifications:
The Company upgraded itself from BS7799 to IS027001:2005 certification - for
information security. The ISO 27001 standard provides a framework for
information security processes and business continuity management. This
certification extends to their US locations also, thereby bringing all the
Indian and USA offices under the umbrella of information security.
Quality
Initiatives:
- Metrics:
To efficiently and effectively measure the performance of various departments
and functions, the Company initiated a Metrics process by defining the metrics
for each department in consultation with the departmental heads in the
organization. The key driver of this exercise is to capture the Voice of the
customer be it internal or external. The metrics covers four broad areas i.e.
velocity, quality, cost efficiency and productivity for each department. This initiative
shall go a long way in bringing objectivity to the Voice of customer aligning
the Company's vision with the departmental objectives and enabling the
finalization of KRAs too.
- Six Sigma:
The Company has also launched a Six Sigma initiative. Training sessions were
held in batches and attended by almost all the employees of the Company. Each
department has to identify one project for Six Signia and with the help of
experienced and trained Black Belts, work towards Six Sigma improvement on the
project. This is aimed at providing an objective and structured methodology for
carrying out improvements standardized across the organization for continuous
improvement of the processes and to provide the grass root employees to think
of improvements and empower them to implement their thoughts and ideas. This
will also help channelise the key focus areas of the organization into
improvement projects and yield bottom line benefit for the organization.
Human
Resources Management:
The global manpower strength of the Company including its
subsidiaries in the USA, UK and Germany as on March 31, 2007 was 1,476.
MANAGEMENT
DISCUSSION AND ANALYSIS:
ndustry Structure and Developments
Global:
Globally, while the US and UK remain the dominant markets for IT-ITES exports,
revenues from newer markets are growing rapidly.
India:
According to NASSCOM, the premier trade body and 'voice' of the IT software and
service industry in India, the Indian IT industry has grown its revenues ten
fold in the past decade, from USD 4.8 billion in FY 1997-98 to USD 47.8 billion
in FY 2006-07.The industry will achieve its ambitious target of USD 60 billion
in exports in 2010. The last decade is a testament to the growing impact of the
Indian IT industry on the global and local economies. The industry is perfectly
poised to tap new opportunities in the offshoring and domestic segments for
greater wealth and IP creation for the country. Contribution to GDP is
estimated to be 5.4% up from 4.8% last year. Service and software exports are
contributing USD 31.3 billion and beating forecast to register a 32.6% growth.
The total size of the Indian domestic market is expected to cross USD 15.9
billion in FY 2006-07, a growth of 21% over FY 2005-06.
The Employment sector of Indian IT-ITES industry is expected to exceed 1.6
million in FY 2007, up from 1.29 million last year. The industry in
collaboration with the government and other stakeholders has initiated several
initiatives to further enhance availability and access to suitable talent for
the IT-ITES industry in India.
- The NAC
(NASSCOM Assessment of Competence) has been nationally rolled out in
November 2006, after a successful pilot. This is being taken to a number
of States in 2007.
- A
comprehensive skill assessment and certification program for entry-level
talent and executives (low-middle level management) is underway.
- An image
enhancement program to build greater awareness about the career
opportunities in this segment is underway.
- NASSCOM has
been working with the academia across the country under its IT Workforce
development initiative to encourage and facilitate greater industry
interaction.
- NASSCOM has
signed MoUs with UGC and AICTE to take these initiatives forward.
- NASSCOM has
suggested the concept of experimenting with adapting the Special Economic
Zone concept (deregulation and removal of restrictions) for education, and
create Special Education Zones. The long-term steps that are needed
include much higher government investment in education, major education
reform and better compensation and research grants for
teachers/researchers.
- NASSCOM has
proposed the setting up of a chain of finishing schools for IT
professionals to make them more employable with a simple 3-4 month
training on honing of technical skills and imparting soft skills training,
helping bridge the manpower supply-demand gap by at least 30-40 percent.
It has been proposed that such finishing schools be set up by the IITs and
National Institutes of Technology.
Threats,
Risks and Concerns:
The greatest challenge facing the Indian IT/ITES services sector is the
shortage of a skilled workforce. It is estimated that the country will face a
shortage of 500,000 knowledge workers by 2010. Increased competitive pressures
are driving costs higher, resulting in a multiplier effect on the profits of
companies in this sector. Competition from other developing countries like
China, which have a pool of knowledge workers, is increasing. Large
multinationals are using India's base of knowledge workers to set up back
office operations in India and are positioning themselves as full service
players with the Indian cost advantage.
Moreover, Service Tax, at 12.5% tax is now also being levied
on leased and rented premises, amongst other items, and becomes another dampener
for BPO companies. Further, the Government of India has finally decided to
extend Minimum Alternative Tax (MAT) to IT and ITES companies, which were so
far exempted.
The major concern going forward is lack of any announcement regarding
continuation of tax incentives (as part of the Software Technology Parks in
India (STPI) scheme), and it is particularly disappointing at a time when other
countries are going all-out to provide a host of inducements. This may lead to
both Indian companies and MNCs to relocate a growing portion of their
incremental growth to other countries.
It is also felt that urban infrastructure in India also needs to be improved as
off shoring companies deal with various shortcomings.
The management of the Company is hopeful that these challenges faced by the
industry, shall be addressed jointly by the industry, government and other
stakeholders through both short and long term solutions.
Risk
Assessment:
The Company has implemented a comprehensive Enterprise Risk
Management Policy, which aims at assessing and controlling risk through a
clearly defined framework. This framework is largely based on the
recommendations of the Committee of Sponsoring Organizations of the Treadway
Commission (COSO).
Foreign Exchange Fluctuation:
The appreciation of the Indian Rupee against the US Dollar
has impacted and will further impact the Company's profitability and operating
results in FY 2007-08.The Company seeks to reduce the effect of the exchange
rate fluctuations on the operating results by purchasing foreign exchange
forward contracts to cover a portion of outstanding accounts receivable and by
inserting appropriate clauses in its contracts to protect against sharp
currency fluctuations.
Quality:
The Company has successfully upgraded itself from BS7799 to ISO 27001:2005
certification - for information security. This certification includes the US
locations, bringing all the Indian and US offices under the umbrella of
Information Security. The implementation of a single certificate was brought
about by training the US staff on the security requirements through detailed
training sessions followed by documenting all processes and finally changing
the systems, platforms, controls to ensure that all locations have uniform systems.
The identical processes and procedures ensures ease of understanding and
implementation globally, and a secure global workflow.
The Company has also launched a Metrics and Six Sigma initiative. The key
driver in these initiatives is to capture the Voice of the Customer, both
internal and external, and to achieve quantum improvements in execution using
this structured methodology.
The Process Reengineering team led by a core team of professionals comprising
of a mix of business process analysts, technology experts as well as domain
experts drive the culture of 'continuous improvement' The mandate of this team
is to 'automate' and 'continuously innovate' bringing change to foster process
efficiency and growth. To this effect, significant investment of resources,
time and money are deployed.
The Company has won the prestigious Ramkrishna Bajaj National Quality Award
[RBNQA] for 2006 in the Service Category from amongst 300 companies and after
multiple levels of evaluation by trained examiners. The RBNQA is one of India's
most prestigious quality and business excellence awards and was instituted by
the Indian Merchants' Chamber (IMC) in 1995. Modelled on the Malcolm Baldrige
National Quality Award from 'he US, it is awarded to companies that demonstrate
outstanding customer orientation and quality management systems. The evaluation
criteria for this award include Leadership, Strategic Planning, Customer and
Market Focus, Measurement, Analysis, and Knowledge Management, Human Resource
Focus, Process Management, and Business Results.
Expansion in Tier II City:
The acquisition of property at Nashik for the next production facility shall be
a proactive move to combat spiraling real estate costs, capacity constraints,
high attrition rates, wage inflation and talent shortage in metros. The
infrastructure development at the acquired property at Nashik is in progress.
Your Company is also in the process of identifying land for a campus at
Nashik.
Financial
Performance Consolidated:
Revenues from the Back office processing division stood at Rs.640.89 million,
thereby contributing to 43.11% to the overall revenue on a consolidated basis.
They continue to be the first choice for back office processing for US
accounting firms and multinationals as they are able to leverage on their
quality work, while significantly reducing their current costs. In addition,
outsourcing helps the clients to avoid the pressure of managing internal staff
and more importantly convert fixed costs into variable costs.
Revenues from the related software services division stood
at Rs.173.68 million and contributed to 11.68% of the revenues on a
consolidated basis. This division provides document management and workflow
services to their customers. Services under this division are rendered as
comprehensive solutions based on the requirements of the Company's respective
software partners like FileNet, Hummingbird and their end clients.
The Net Block of Assets increased to Rs.329.23 million in the current year as
against Rs.321.59 million in the previous year as the company continued to
invest in infrastructure. The Investments increased by Rs.89 million to
Rs.1,049.04 million in the current year.
The Sundry Debtors decreased to Rs.461.17 million in the current year as
against Rs.474.99 million in the previous year as continuous efforts were made
with customers to reduce the collection time of invoices.
The Net Current Assets increased to Rs.191.89 million in the current year as
against Rs.187.65 million in the previous year.
Overseas Subsidiaries:
A significant development this year is the turnaround in our UK operations,
which is extremely encouraging. The Company aims to replicate the same in its
US and German operations. Currently, 84% of the revenues are generated from US
operations, 12% from Europe and 2% from the rest of the world. The Company
shall endeavor to have a larger share of revenues coming in from the European
operations in FY 2008.
Amalgamation - Going Forward
Strategy:
The Board of The Company has given its approval to consider the
amalgamation with Datamatics Limited, its group company engaged in IT services.
This move shall position the Company as a one stop-shop for end-to-end
solutions spanning consulting, technology architecture and business process
management, including both IT and ITeS services. Both companies shall gain
advantage from the fact that both companies target customers in the same
verticals i.e. banking, financial services and insurance, telecom, publishing,
manufacturing and semi-government organizations.
Cross selling of their service lines to the world's top publishers, who are
also a part of their client base, will be an essential part of their agenda
going forward along with providing world class services and focused sales and
marketing efforts. The Company's focus for the year ahead is three pronged:
strengthening relationships with clients, building on the growth of the last
year and containing costs.
Website
details
Profile:
Subject is a premier provider of business process
outsourcing (“BPO”) and knowledge processing outsourcing (“KPO”) solutions.
They specialize in: Accounting, Claims, Payroll, Tax Services, Legal BPO,
Content Management, Abstracting and Indexing, Document and Work flow
Management, Data Warehousing, and Business Intelligence Solutions.
Founded in 1975, the Company has grown at a dramatic pace
under the able guidance of its Founder and Chairman, Dr. Lalit Kanodia,
who is widely acknowledged as the founder of the Indian IT industry. Subject is
one of the few publicly listed BPO companies, with shares traded on the Bombay
Stock Exchange and the National Stock Exchange of India. They are regarded as
one of India's leading Information Technology and BPO services organizations.
Headquartered in Mumbai but having offices across the world,
the Company delivers reliable services to a host of international clients,
including six of the top 25 Fortune 500 companies. Subject is three decades of
proud commitment to helping organizations manage large projects has resulted in
long lasting client-relationships, and our client-base continues to grow
monthly. In an effort to reinforce their commitment to their clients,
Datamatics’ has obtained ISO 9001-2000 and BS-7799 quality and security certifications, and
the Company’s consulting services practice is CMM Level 5 certified by the
Software Engineering Institute.
The subject business approach employs a dual emphasis on
“skill”, denoting a technical and managerial competency, and “scale”, which
reflects the ability to create a high volume world class processing capability.
They strive hard to provide sound business solutions, simplify processes, and
ultimately deliver cost advantages and added value to each of their clients.
Dr. L.
S. Kanodia, Chairman
Dr. L. S. Kanodia, Chairman of Datamatics, is credited with
being the father and architect of the Indian Software Industry. He is the only
software professional to feature in the Dataquest "Hall of Fame"
along with Rajiv Gandhi, India's former Prime Minister. Dataquest's citation
honoring Dr. L. S. Kanodia says, in part:
The
Pioneer
At MIT, prior to completing his doctorate from the same
institute, Dr. Kanodia was a member of the team that developed and designed the
first two multi-user operating systems (CTSS and MULTICS), which were
precursors to UNIX. His pioneering streak continued and, in 1967, Dr. Kanodia
founded and headed Tata Consultancy Services (1967). History was created again
when the Doctor founded Datamatics in 1975.
Through Dr. Kanodia's visionary zeal, Datamatics is, today,
ranked by NASSCOM as the 12th largest BPO Company. With several innovations to
its credit, Datamatics had the distinction of establishing the first satellite
link from India to the USA (AT&T Bell Labs) in 1989 and boasts having
initiated the "off-shore software factory" concept.
The company has executed over 1100 projects in 58 countries
for some of the world's largest organizations, including five of the top ten
Fortune 500 companies. Today, its employee strength is over 1600, across the
continents.
Recognition
Dr. Kanodia is instrumental in making India a global IT
superpower. The Government of India elicits his support in shaping the IT and
Telecom policies of the country. Today, Dr. Kanodia is the driving force behind
the Maharashtra IT Task Force.
He is also the Chairman (Western Chapter) of the Electronic
and Computer Software Export Promotion Council (ESC) that functions under the
aegis of the Ministry of Information Technology, Government of India. An
Executive Member of NASSCOM, Dr. Kanodia has also been an Executive Committee
Member of the Federation of Indian Chambers of Commerce and Industry (FICCI)
where industry captains confer the future, and Past President of the Management
Consultant's Association of India. Dr. Kanodia is also on the Board of
Directors of several large conglomerates.
In recognition of his many contributions, Dr. Kanodia has
been personally felicitated by the Prime Minister of India (1999), the State
Government of Maharashtra (Sept. 2000), and the U.S. $170 billion Itochu
Corporation, among others.
Additionally, Dr. Kanodia authors papers that contribute to
the economic development of India, and the Government of Chile has designated
him as the Honorary Consul General of Chile in India. As always, he remains a
visionary at heart.
Milestones:
1975
The Incorporation of Datamatics.
1983
Pioneered India’s first offshore software factory by setting
up a Dedicated Offshore Center for Wang Labs, USA.
1989
First company to establish a satellite link from its
software development center in India to AT&T Bell Labs, USA.
1992
First Electronic Publishing Company in India.
1995
Chairman, Dr. LS Kanodia, inducted into the Dataquest Hall
of Fame... and remains the only software professional to be thus honored.
1997
First in India and second in the world to obtain an ISO 9002
certification in Electronic Publishing.
1998
First company in the world to guarantee a 99.997% accuracy
level in data capture.
1999
Prime Minister of India confers the ESC “Most Innovative Software
Product Award” upon Datamatics Technologies.
2000
First Indian Technology Company to acquire controlling stake
in a US listed data management company (Saztec International).
2003
First Indian company to scale up a dedicated facility into a
Joint Venture in the BPO space via acquisition of CorPay for providing
customized outsourcing solutions for payables processing and other Finance
and Accounting functions.
2004
First Indian non-voice third party BPO Company to get listed
on BSE and NSE.
2006
Selected as Rising Star at 'The Global Outsourcing 100' 2006
Outsourcing World Summit.
2006
Among Top 50 best managed outsourcing vendors by 'The Black
Book of Outsourcing'.
2007
Winner of the IMC Ramkrishna Bajaj National Quality Award
2006.
2007
Ranked Third globally among global document process
outsourcing providers by 'The Black Book of Outsourcing'.
2007
Winner of International Asia Pacific Quality Award. Becomes
first and only Indian company to win the award in Services category, beating
competition from hundreds of companies across the services spectrum in
countries such as the US, Japan, Australia, Russia, Canada...
Management:
Rahul
L Kanodia - Vice Chairman and CEO
After his graduation in Finance and Accounts from Mumbai’s H
R College, Rahul L Kanodia completed his second degree from the Babson College
USA, with a specialisation in Management Information Systems. Further, Rahul is
an MBA from Columbia University, (an Ivy League University), New York, USA,
with a major in Business Strategy and Marketing and a minor in Mergers and
Acquisitions and Turnaround Management.
Rahul first worked with Datamatics as a trainee systems
programmer; and later as a consultant at the UN. At the age of twenty-five he
established Datamatics America in 1992, in New York and was appointed Managing
Director of Datamatics Limited in 1996.
While conceptualising and implementing growth strategies,
and forging strategic alliances with Fortune 500 companies, Rahul initiated
organisational restructuring and financial re-engineering for supporting rapid
growth. These initiatives provided the platform for Datamatics to establish
operations in USA and Europe.
Vidur
Bhogilal - Chief Financial Officer
Vidur Bhogilal has been Chief Financial Officer and
Executive Director, Subject since May 12, 2005, prior to which he acted as CFO
and Director from 2001-2005. In this capacity, Vidur played a key role in
Datamatics’ US acquisitions; including privatizing a NASDAQ listed company and
overseeing the successful merger and integration of Datamatics’ three U.S.
subsidiaries into one company.
From 1999-2001, Vidur worked as Datamatics’ AGM, Business
Development, where he was actively involved in setting up joint ventures with
U.S. multinationals and headed the Mergers and Acquisitions division. During
this time, the Company executed the first acquisition by an Indian ITES company
of a listed U.S. corporation under Vidur’s guidance.
Before joining Datamatics, Vidur worked for international
organizations such as JM Morgan Stanley and Arthur Anderson, amongst others.
Vidur received his B.Com. From Sydenham College of Commerce
and Economics, Mumbai and an LL.B from Government Law College, Mumbai. He is a
member of the Institute of Chartered Accountants of India (ACA) and the
Institute of Cost and Works Accountants of India (AICWA). He also holds a
degree of Certified Public Accountants (CPA) from the American Institute of
Certified Public Accountants, Delaware.
A rank holder and a gold medallist in his academic
endeavors, Vidur brings rich experience in the fields of Accounts, Finance,
Human Resources, Administration, and Legal.
Michael
Thuleweit - Managing Director, Datamatics Technologies GMBH
A Computer Science diploma holder, Mr. Thuleweit has 20
years of experience in the IT industry with more than 13 years of management
expertise. He joined Datamatics GmBH in 1997. Mr. Thuleweit has a strong
background in technology as well as sales and marketing and is well versed in
C/S concepts, B2B based on mainframes, C programming, SQL Database technologies
and Project Management skills. Prior to joining Datamatics, Mr. Thuleweit
worked with firms such as Danet and Nixdorf Computer AG. He also worked at
Software AG for 7 years in the capacity of Vice President Technology Alliances
where he was responsible for the external development and business relationship
of Software AG.
Atul
Srivastava - Senior Vice President and Head, Corporate HRD
Atul has done his Masters in Social Works from Delhi School
of Social Works in 1976 and Bachelor in Social Works from Jamia School of
Social Works, New Delhi, in 1973. Atul has 30 years of experience in the areas
of Human Resources Management. He has worked with companies like Hindustan
Organic Chemicals, Pawan Hans Helicopters Limited and Siemens Information
Systems Limited. His last assignment was with Capgemini Consulting (India)
Private Limited as Director - People Relationship Management.
News:
Datamatics
Technologies wins the IMC RBNQA for 2006 (Feb 5, 2007)
Datamatics Technologies Limited (DTL) (NSE:
"DATAMATICS", BSE: 532528), India 's leading non-voice BPO service
provider has been awarded the IMC Ramkrishna Bajaj National Quality Award
(RBNQA) for 2006 in the Service category.
The RBNQA is one of India's most prestigious quality and
business excellence awards and was instituted by the Indian Merchants' Ch amber
(IMC) in 1995. Modelled 100% on the Malcolm Baldrige National Quality Award
from the US, it is awarded to companies that demonstrate outstanding customer
orientation and quality management systems.
Consistent with the principles of continuous improvement,
the award's criteria have been revised and improved every year. The IMC follows
a rigorous evaluation procedure while selecting the winners. The IMC Ramkrishna
Bajaj National Quality Award aims to:
- Promote
quality awareness and practices among Indian businesses
- Recognize
quality achievements of Indian companies
- Publicize
successful quality strategies and programs
Acknowledging the award Mr. Manish Modi , MD and CEO of DTL
said, "Our implementation journey of this model began two years ago when we
decided that we would use the scoring criteria of the IMC RBNQA to benchmark
ourselves with the best in the industry globally. Customer delight and
continual improvements have always been driving factors propelling us to strive
incessantly towards perfection in the spheres of our business. Being bestowed
with this award is a public recognition of our sincere efforts."
Datamatics Technologies has won this award in close
succession to the recent recognition attained as the #3 global document process
outsourcing (DPO) providers in Brown-Wilson Group's prestigious annual survey
of outsourcing service providers & achieving SAS 70 Certification.
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.39.98 |
|
UK Pound |
1 |
Rs.79.09 |
|
Euro |
1 |
Rs.62.25 |
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 |
8 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--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 |
NO |
|
--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
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. |
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 |
|