MIRA
INFORM REPORT
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Report Date : |
23.04.2011 |
IDENTIFICATION DETAILS
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Name : |
FOUR SOFT LIMITED |
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Registered Office : |
5 Q1, A3, 5th |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of Incorporation : |
24.12.1999 |
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Com. Reg. No.: |
01-33131 |
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CIN No.: [Company
Identification No.] |
L72200AP1999PLC033131 |
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TAN No.: [Tax Deduction
& Collection Account No.] |
HYDF00177C |
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Legal Form : |
A Public Limited Liability Company. The company's shares are listed on the Stock Exchanges. |
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Line of Business : |
Subject is engaged in development of computer software promoted by technocrat entrepreneurs for freight and logistic applications. It also engaged in developing innovative software products and providing IT consulting services |
RATING & COMMENTS
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MIRA’s Rating : |
Ba (52) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 4100000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established company having fine track. Financial
position of the company appears to be sound. Trade relations are fair.
Business is active. Payments are reported to be regular and as per
commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
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Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
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A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
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Registered Office / Software Development Centre : |
5Q1, A3, 5th |
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Tel. No.: |
91-40-23100600 / 601 / 603 |
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Fax No.: |
91-40-23100602 |
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E-Mail : |
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Website : |
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Area : |
4000 Sq.fts |
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Head Office : |
H. No. 180, Plot No. 99, Women Co-operative Society, Road
No. 5, Jubilee Hills, |
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Tel. No.: |
91-40-3554334 |
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Fax No.: |
91-40-3100602 |
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E-Mail : |
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Area : |
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For investor matters : |
Ms.
Seena Sankar
Company
Secretary and Compliance Officer Secretarial
Department Four Soft Limited 5Q1
A3, 5th Floor, Tel:
91-40-2310 0600, Fax:
91-40-2310 0602 email:
investorinfo@four-soft.com |
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For
queries on Financial statements : |
Mr.
Biju S. Nair Sr.
Vice President (Finance and HR) 5Q1
A3, 5th Floor, Tel:
91-40-2310 0600, Fax:
+91-40-2310 0602 email:
nair.biju@four-soft.com |
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Branches / Overseas Office : |
Ř 210,
Lal Bunglow, 6-3-862 / A & B, 2nd Floor, Ameerpet, Tel. No. 91-40-3412471 / 3411068 / 070 / 3100604
Ř
5Q1A3, Tel. No. 91-40-3100600 / 601 / 603 Fax No. 91-40-3100602
Ř
Q1-A, 35th Floor, Tel. No. 91-40-3100604
Ř
541, Tel. No. + 65 8349680 Fax No. + 65 2381780
Ř C/o. Global Freight Exchange Limited 630, Four Soft Singapore Pte Limited, Tel: +65 6734 5575 Fax: +65 6734 5002 e-mail: sg.sales@four-soft.com Four Soft Logistics Software (Shanghai) Company Limited, No. 22301-448, Pudong Software Park, Guoshoujing Road No. 498, Zhangjiang Hi-Tech Park, Shanghai 201 203 e-mail: sales@four-soft.com Tel: +31 (0) 78 6256 256 Fax: +31 (0) 78 6256 299 e-mail: eu.sales@four-soft.com 5Q1A3, Fax: 91-40 23100602 e-mail: sales@four-soft.com Four Soft UK Limited, Newstead House, Lake View Drive, Sherwood Park, Annesley Nottinghamshire, NG15 0DT England Tel: +44 (0) 870 756 5783 Fax: +44 (0) 162 372 0006 e-mail: uk.sales@uk.four-staff.com
Four Soft USA Inc., Fax: +1 631 752 7829 e-mail: us.sales@four-soft.com |
DIRECTORS
As on : 31.03.2010
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Name : |
Mr. Palem Srikanth Reddy |
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Designation : |
Chairman and Managing Director |
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Name : |
Dr. T.R. Sivaramakrishnan |
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Designation : |
Independent Director |
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Name : |
Mr. Srnivas Prasad |
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Designation : |
Independent Director |
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Name : |
Mr. Mohan Krishna Reddy |
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Designation : |
Independent Director |
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Name : |
Mr. P. Mangmma |
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Designation : |
Non Executive Director |
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Name : |
Mr. Joergen Winther Nielsen |
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Designation : |
Non – Executive Director |
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Name : |
Mr. K V Ramakrishna |
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Designation : |
Independent and
Nominee Director |
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Name : |
Ms. Kavitha Pakala |
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Designation : |
Company Secretary and Compliance Officer |
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MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2011
|
Category of Shareholder |
No. of Shares |
Percentage of
Holding |
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Shareholding of Promoter and Promoter Group2 |
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Indian |
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Individuals/ Hindu Undivided Family |
9282074 |
23.82 |
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Foreign |
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Individuals (Non-Residents Individuals/Foreign
Individuals) |
1532768 |
3.93 |
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Bodies Corporate |
1596308 |
4.10 |
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Public shareholding |
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Institutions |
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Financial Institutions / Banks |
300 |
0.00 |
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Venture Capital
Funds |
190022 |
0.49 |
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Non-institutions |
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Bodies Corporate |
2838704 |
7.29 |
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Individuals |
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Individuals -i. Individual shareholders holding nominal
share capital up to Rs 0.100 Million |
10919425 |
28.03 |
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ii. Individual shareholders holding nominal share capital in excess of Rs. 0.100
Million |
5385440 |
13.82 |
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Any Other (specify) |
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Non Resident Indians |
7214703 |
1.18 |
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Clearing member |
457919 |
0.04 |
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Trusts |
4239795 |
`1.43 |
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Overseas Corporate Bodies |
2067581 |
5.31 |
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Foreign Nationals |
432344 |
1.11 |
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Total |
38959744 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Subject is engaged in development of computer software promoted by technocrat entrepreneurs for freight and logistic applications. It also engaged in developing innovative software products and providing IT consulting services |
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Products : |
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GENERAL INFORMATION
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No. of Employees : |
583 (Approximately) |
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Bankers : |
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Facilities : |
Secured Loans :
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Banking Relations
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Good |
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Auditors : |
Walkar, Chandiok
and Company Chartered
Accountants |
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Internal
Auditors : |
Laxminiwas Neeth
and Company Chartered
Accountants |
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Related Party : |
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Subsidiaries
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·
Four Soft
BV, The Netherlands
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CAPITAL STRUCTURE
As on : 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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56077600 |
Equity shares |
Rs. 5/- each |
Rs. 280.388 Millions |
|
696120 |
14% redeemable optionally convertible cumulative preference shares |
Rs 100/- each |
Rs 69.612 Millions |
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Total |
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Rs 350.000 Millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
|
38959744 |
Equity shares |
Rs. 5/- each |
Rs 194.798 Millions |
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Less : Calls in arrears by others |
|
Rs0.003 Millions |
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Less : Amount recoverable from ESOP trust [556856 equity shares
(Previous year: 868567), including 217200 bonus shares allotted to the trust] |
|
Rs 0.655 Millions |
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Total |
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Rs 194.140 Millions |
Notes:
Of the above
shares:
a. 4,563,970 (2009:
4,563,970) equity shares of Rs 5 each are allotted as fully paid-up bonus
shares by capitalization of general reserve.
b. 10,452,102
(2009: 10,452,102) equity shares of Rs 5 each, were allotted as fully paid-up
pursuant to a contract without payments being received in cash.
c. 821,875 shares
(2009: 703,882 shares) of Rs 5 each, fully paid-up were issued to employees
(through ESOP trust) pursuant to the employee stock option
scheme.
— Of the above
390,544 (2009: 390,544) shares were issued at Rs 19.65 out of which Rs 14.65
per share were received in the form of employee service.
— Of the above
20,000 (2009: 10,000) shares were issued at Rs 48.45 out of which Rs 43.45 per
share were received in the form of employee service.
— Of the above
326,338 (2009: 303,338) shares were issued at Rs 70.75 out of which Rs 65.75
per share were received in the form of employee service.
— Of the above
84,993 (2009: Nil) shares were issued at Rs 24.65 out of which Rs 19.65 per
share were received in the form of employee service.
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
194.140 |
193.544 |
193.091 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Equity Share Warrants |
0.000 |
0.000 |
14.280 |
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4] Stock options outstanding |
3.594 |
5.835 |
8.752 |
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5] Reserves & Surplus |
817.379 |
813.649 |
774.001 |
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6] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH
|
1015.113 |
1013.028 |
990.124 |
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LOAN FUNDS |
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1] Secured Loans |
30.294 |
135.000 |
135.955 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING
|
30.294 |
135.000 |
135.955 |
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DEFERRED TAX LIABILITIES |
3.690 |
2.057 |
5.340 |
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TOTAL
|
1049.097 |
1150.085 |
1131.419 |
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APPLICATION OF FUNDS
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FIXED ASSETS [Net Block]
|
55.108 |
69.624 |
91.544 |
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Capital work-in-progress
|
0.000 |
0.000 |
0.125 |
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INVESTMENT
|
1156.347 |
1033.492 |
912.511 |
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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 |
0.000 |
0.000 |
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Sundry Debtors
|
81.211 |
151.957 |
242.561 |
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Cash & Bank Balances
|
21.015 |
17.092 |
18.964 |
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Other Current Assets
|
0.917 |
7.321 |
8.295 |
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Loans & Advances
|
32.486 |
37.839 |
79.456 |
Total Current Assets
|
135.629
|
214.209
|
349.276
|
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Less : CURRENT LIABILITIES & PROVISIONS
|
|
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Current Liabilities
|
291.162 |
160.321 |
214.584 |
|
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Provisions
|
6.825 |
6.919 |
7.453 |
Total Current Liabilities
|
297.987
|
167.240
|
222.037
|
|
Net Current Assets
|
(162.358) |
46.969 |
127.239 |
|
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MISCELLANEOUS EXPENSES
|
0.000 |
0.000 |
0.000 |
|
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TOTAL
|
1049.097 |
1150.085 |
1131.419 |
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PROFIT & LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SALES |
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Revenue from software services and products |
325.797 |
365.373 |
371.355 |
|
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Other Income |
5.727 |
25.587 |
8.971 |
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TOTAL (A) |
331.524 |
390.960 |
380.326 |
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Less |
EXPENSES |
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Personnel Expenses |
196.627 |
212.092 |
146.299 |
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Operation and other expenses |
85.500 |
119.122 |
188.236 |
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TOTAL (B) |
282.127 |
331.214 |
334.535 |
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
49.397 |
59.746 |
45.791 |
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Less |
FINANCIAL
EXPENSES (D) |
15.811 |
16.940 |
11.829 |
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PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
33.586 |
42.806 |
33.962 |
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Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
14.708 |
22.415 |
25.277 |
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PROFIT BEFORE
TAX (E-F) (G) |
18.878 |
20.391 |
8.685 |
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Less |
TAX (I) |
7.341 |
0.729 |
5.108 |
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PROFIT AFTER TAX
(G-I) (J) |
11.537 |
19.662 |
3.577 |
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Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
153.492 |
133.830 |
NA |
|
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|
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|
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|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
0.000 |
0.000 |
NA |
|
|
|
Dividend |
9.742 |
0.000 |
NA |
|
|
|
Tax on Dividend |
1.655 |
0.000 |
NA |
|
|
BALANCE CARRIED
TO THE B/S |
153.631 |
153.492 |
NA |
|
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EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
License Fees |
5.264 |
0.000 |
NA |
|
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|
Annual From Services |
15.841 |
15.221 |
NA |
|
|
|
Revenue from Services |
225.240 |
257.771 |
NA |
|
|
|
Sale of Third Party License |
0.834 |
4.698 |
NA |
|
|
TOTAL EARNINGS |
247.179 |
277.690 |
NA |
|
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|
|
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IMPORTS |
|
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|
|
|
|
|
C.I.F Basis |
Nil |
0.286 |
NA |
|
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TOTAL IMPORTS |
Nil
|
0.286 |
NA |
|
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|
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|
Earnings Per Share
(Rs.) |
0.30 |
0.51 |
-- |
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QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Sales Turnover |
68.950 |
58.740 |
62.980 |
|
Total Expenditure |
82.990 |
79.760) |
79.790 |
|
PBIDT (Excl
OI) |
(14.040) |
(21.020) |
(16.810) |
|
Other Income |
1.170 |
0.520 |
0.390 |
|
Operating
Profit |
(12.870) |
(20.500) |
(16.420) |
|
Interest |
0.090 |
0.360 |
0.038 |
|
Exceptional
Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
(12.960) |
(20.860) |
(16.800) |
|
Depreciation |
2.640 |
2.460 |
2.500 |
|
Profit
Before Tax |
(15.600) |
(23.320) |
(19.300) |
|
Tax |
(3.670) |
(7.270) |
(6.450) |
|
Reported PAT |
(11.930) |
(16.050) |
(12.850) |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
(11.930) |
(16.050) |
(12.850) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
3.47
|
5.02 |
0.94 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
5.79
|
5.58 |
2.33 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
9.89
|
5.83 |
1.97 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.01
|
0.02 |
0.00 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.32
|
0.29 |
0.36 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.45
|
1.28 |
1.57 |
LOCAL AGENCY FURTHER INFORMATION
BUSINESS PERFORMANCE
Result of
Operations
During the year, the global economic slowdown had impact on the Company's
revenues as customers have deferred the decision to make investments in IT
systems. However this provides opportunity for the Company in the year 2010-11
as the customers are likely to release the IT budgets withheld last year as the
economy is showing sign of improvement. The global logistics industry, market
dynamics and the environment in which their business operates has started
improving significantly towards the end of year and is likely to benefit us in
the next financial year. In current financial year all their flagship products
such as 4S eTrans, 4S eLog, 4S Visilog, 4S Visilog Plus and 4S iShipping have
been implemented successfully across numerous customers in multiple global
locations. With the global economy showing signs of coming out of the
recessionary phase, they believe this is the right time to strengthen our sales
and marketing engine and take up an aggressive product and services roll out.
Accordingly the Company has made significant investment by appointing global
sales team in last quarter of the year and will continue investing
significantly in products.
Revenues
Total income in financial year 2009-10 is Rs. 331.52 Million
(Previous year Rs.390.96 Million) and Rs. 1381.21- Million as per the
Consolidated Accounts (previous Year Rs 2094.38 Million). Operating Profit
(EBITDA) is at Rs. 49.39 Million (previous year Rs. 59.75 Million) and
Rs.134.06 Million as per Consolidated Accounts (previous year Rs. 713.77
Million). Profit after tax is Rs. 11.54 Million or 3.48% of total income
(Previous Year Rs. 19.66 Million or 6.02% of total income) and Rs. 76.65
Million or 5.55% as per the Consolidated Accounts (Previous Year Rs. 447.24
Million or 21.09% of total income) During the year the Company increased its
client base across the globe. The
Company continues to grow towards becoming the Industry leader in this
domain, leveraging the excellence in technology, domain and processes and
continue to get more than 80% of revenues from existing customers. The Company
has incurred capital expenditure of Rs. 0.87 Million for infrastructure and
facilities. The Company has incurred Rs. 80.59 Million on R and D expenses for
the year 2009-10 as against Rs 59.61 Million during the year 2008-09. They were
also able to close many deals in India during this year and India is now
emerging as a potential market which will be untapped for the Company in the
years to come. To capitalize on the opportunities that are opening up in the
domestic market, we are investing in new marketing initiatives, strengthening
IT capability and expanding our research division.
SUBSIDIARIES:
They have four subsidiaries; Four Soft B.V., Netherlands, Four Soft
Singapore Pte Limited Four Soft Malaysia Sdn Bhd, Four Soft Nordic A/S, Denmark
and six step-down subsidiaries Four Soft Netherlands B.V., Four Soft UK
Limited. Four Soft USA Inc., Four Soft Japan KK, Four Soft (HK) Limited and
Four Soft Australia Pty Limited.
The summary of the key financials of all the four subsidiaries is
mentioned below:
Four Soft B.V Netherlands
During the year 2009-10, Four Soft B.V. has made a consolidated net
loss after tax of € 0.48 Million (2008-09 profit of € 5.94 Million) on revenue
of € 12.78 Million (2008-09 € 22.21 Million).
Four Soft Nordic
A/S.
In January 2007, the Company acquired Transaxiom Holding A/S and
after the name of the Company was changed to Four Soft Holding A/S. Four Soft
Holding A/S merged with Four Soft Nordic A/S on the date of acquisition. Four
Soft Nordic A/S generated revenues of DKK 43,56 Million, with a net profit of
DKK 6.41 Million.
Four Soft
Singapore Pte Limited
In May 2005 the Company acquired Comex Frontier Pte Limited.
(renamed as Four Soft Singapore Pte Limitde). The Company generated revenues of
SG$ 0.93 Million, with gross profit of SG$ 0.35 Million and a net loss of SG$
0.02 Million. Their business in Far East has remained at the same level,
primarily due to the macro-economic developments. However we anticipate good
traction in emerging markets such as Japan and China in the coming years. They
have initiated entering into these markets by direct and channel partner
models. Acquisition of Comex Frontier and further developments in far east has
let to their entry in the Japanese Market which has huge potential to grow in
the future.
Four Soft Malaysia
Sdn Bhd
In May 2005, the Company acquired MY Comex Sdn. Bhd. (renamed as
Four Soft Malaysia Sdn Bhd). The Company generated revenues of RM 0.11 Million,
with a net profit of RM 0.03 Million.
INDUSTRY SOLUTIONS
Presently, the Company offers solutions in the areas of Freight
forwarding industry, 3PLs and Service providers, Customs brokerage, Contract
and Warehousing Logistics, and for Liners, NVOCCS and Agencies. Products in
Freight forwarding industry include 4S eTrans, 4S Visilog iLogistics, Shipper
Logistics, and 4S eTrans SME and that for Contract and 3PL warehousing
providers include 4S eLog. In addition, 4s iShipping targets the Liners market,
4S eCustoms targets the customs brokers & shippers and 4S Visilog Plus
which represents the 4S Shipper Logistics targets the shippers and
manufacturers for their logistics. The Company also offers IT- Services
including Consulting, Software Development and System Integration and
Implementation in the domain of Logistics related IT. The Company had re-branded the product 4S ePOMS
to 4S Visilog as a more suitable name for the functionality it provides, namely
order management and track and trace, and it being the visibility layer in our
product range. Similarly 4S Visilog has been renamed as 4S Visilog Plus as a
more appropriate name for its wide encompassing feature set of visibility,
order management, freight management, warehouse management etc.
Overview
The financial statements have been prepared in compliance with the
requirements of the Companies Act 1956, and Generally Accepted Accounting
Principles (GAAP) in India. The Management of Four Soft accepts responsibility
for the integrity and objectivity of these financial statements, as well as for
various estimates and judgments used therein. The estimates and judgments
relating to the financial statements have been made on a prudent and reasonable
basis, in order that the financial statements reflect in a true and fair manner
the form and substance of transactions, and reasonably present the Company's
state of affairs and profits for the year. The following discussion may include
forward looking statements
which may involve risks and uncertainties, including but not limited
to the risks inherent to Company's growth strategy, dependency on certain clients,
dependency on availability of qualified technical personnel and other factors
discussed in this report.
Industry Structure
and Developments
Four Soft is an enterprise applications and product Company that operates
in the SCM (Supply Chain Management) market space. Four Soft has its suite of
products for Transportation, Logistics, Freight Forwarding, Customs, Shipping,
Non-Vessel Operating Common Carrier (NVOCC), 3PL and 4PL companies. The target
customers in 'Transportation and Logistics' vertical include service providers;
and for 'Supply Chain Execution / Distribution' vertical, the target market
includes shippers / manufacturing and 4PL companies. These are execution and
mission critical applications for the customers. Our product portfolio enhances
efficiency, provides visibility and integration across operations and also to
other third party software and systems. The Company's product development
centre (India Technology Centre) and Global Delivery centre are located at
Hyderabad with sales and support offices in UK, Netherlands, Denmark, USA,
Singapore, Australia and Japan. Four Soft continues to be a global leader in
Supply Chain Execution Software Solutions for Transportation, Freight
forwarding and Logistics domain. Transport and logistics industry is growing at
a faster pace 12-18% globally and more important the future of this industry is
heavily dependant upon the efficient delivery and visibility which requires
more than current investment in IT. This applies to all the manufacturing
industries specifically to Pharmaceutical, Automobile and Retail industry. The
industry will soon be called IT driven supply chain companies which means
opportunities for IT products and services companies across the globe.
Business Segments
and Industry
Outlook
Business Segments
Four Soft offers custom developed software solutions apart from
product licenses. The prime growth area in business is software solutions for
the transportation and logistics domain. The Software Products offered by Four
Soft are 4S eTrans, 4S eLog, 4S iLogistics, 4S Visilogplus, 4S iShipping, 4S
visilog, and 4S eCustoms. Four Soft offers the above products in license
hosting as well as in SAS models to cater to wide range of clients.
Freight Forwarding Solutions
Built on the cutting edge technology of J2EE, Spring and SOA
architecture, 4s eTrans is a multi-modal, web-centric application for
transportation companies - designed to give operational and financial control
of global and domestic freight movements, from order to cash.
• 4S eTrans is offered for Large, Medium and Small customers and
provides real time data visibility and improved operational profitability. The
SME version provides solutions for small and medium enterprises.
• 4s iLogistics built on IBM iSeries, provide solutions for Freight
and logistics business of global organizations.
• 4s visilog offers Track and Trace functionality to service
providers who in turn could also be using other applications in this domain.
Opportunities
Primary focus on
Organic Growth
Four Soft has grown over years by a combination of organic and
inorganic strategies. The Company has successfully integrated all its global
operations and also sailed through the turbulent global economic environment in
the last twelve months and survived emerged to become the most efficient
organization with proven delivery capability. This has set the stage for the
management to frame the strategies with main focus on organic growth
Diversifying into BPO services within the supply chain
segment
The Company plans to foray into Business Process Outsourcing (BPO)
space through a blend of organic and inorganic route to offer services like
freight settlement reports, customer service and transaction entry to global freight
forwarding companies etc by leveraging the existing domain knowledge and
customer base. The Company believes that being a product service provider, it has an advantage of understanding the business better and
has the potential to start BPO services within the existing customers.
Strengthen presence into new geographies through
Focus on SCM and shipper logistics
FSL is planning to expand presence into new geographies and focus on
shipper logistics vertical and SCM market through Ware Housing Management
Solution (WMS) companies, with an objective to exploit potential business
synergies.
Strategic alliance with top industry players to achieve
operational efficiency
Four Soft has brought top players of the logistics industry on a
single platform to form a strategic forum – FFIFA
(Freight Forwarding Industry & Four Soft Alliance) with players
like DHL, Geodis Wilson, CEVA, Agility and others. This would provide a forum
for the exchange of ideas where the resultant "industry best
practices" will save the industry time and costs in the execution of its
duty to its customers. Four-Soft in conjunction with FFIFA members has
developed an emission calculator, eMission, which provides
detailed data of emissions, allows transport and logistics companies to
document and report the emission of co2 and other green-house gases directly to
the transport customers, and helps in the preparation of environmental,
reports. Revenues have grown consistently over the years and the Company has a
track record of having profits every year since inception. As a result of focus
on continued development of products, Four Soft has acquired reputed customers,
different geographies, various regional products and management bandwidth across
geographies through acquisitions. The Company integrated all acquired companies
to become a stable global business before initiating its organic growth. They
offer a whole breadth of new generation and new technology applications to our
existing and new customers, which in turn contributes to the organic growth.
Market Opportunity
Four Soft in the recent past has established its web centric or next
generation product portfolios in such a way that these products are available
on licensing, hosting and SaaS models. This has opened up a wide range of
market space for the Company in terms of attracting stock markets, media and
large enterprises in the supply chain .Translogistics 3PL companies will become
the IT supply chain drivers of the future and hence their survival itself is
dependant on the investment in technology or IT products and technology is
necessary to bring additional market space for Four Soft. Manufacturing
companies across the globe spend a large percentage of its expenditure in
managing supply chain either directly or through 4 PL companies. Four Soft
having its supply chain products Visilog and Visilog+ has proved that there are
the products that enterprises look for to manage their supply chain at reduced
costs. With the multiple acquisitions Four Soft has made in the recent years,
the product portfolio has extended horizontally. The Company has already
adopted a well planned M and A strategy to strengthen its software solutions
for transport and logistics industry by acquiring companies across the globe
with Fortune 500 logistics and transportation clients, deep domain expertise
and global presence and experienced management. Four Soft has adopted a strong
integration strategy of retaining the top management and key employees of the
acquired companies and off-shoring the billable work to India in order to save
high onsite costs along with focus on transition from legac system to next generation system. Today it
offers software solutions for Transportation, Logistics, 3PL/ 4PL providers, Distributions,
solutions for Freight forwarding industry, Customs brokerage, Contract
Logistics, Shipper Logistics and Services. It also has offerings built on
latest internet technologies, using J2EE, which in turn positions Four Soft as
the best in the industry thereby providing an opportunity for product offerings
in this domain. With the growing complexity of operations in this domain, it is
extremely important to get the real-time visibility in the supply chain
execution and ensure that information moves seamlessly across the supply chain,
including internal systems and multiple external systems. Tracking and tracing
the consignment is of great business interest to each of the business partner
in the supply chain right from consignor to consignee including the service
providers in the middle. Powerful transaction applications that would increase
operational efficiency added with the capability to offer visibility and track
and trace has good market potential in this domain and our applications
typically target to offer this value proposition to the target market segments.
STANDALONE
FINANCIAL RESULTS FOR THREE MONTHS ENDED DECEMBER 31, 2010
(Rs. In millions)
|
Particulars |
Three Months Ended 31.12.2010 (Unaudited) |
Nine Months Ended 31.03.210 (Unaudited) |
|
(a) Net Sales/ Income from
operation |
6894.700 |
8403.300 |
|
(b) Other Operating Income |
0.000 |
0.000 |
|
Total Income |
6894.700 |
8403.300 |
|
2. Expenditure |
|
|
|
a. Employees Cost |
6141.900 |
1767.580 |
|
b. Depreciation |
264.400 |
760.800 |
|
c. Exchange difference loss/(gain) |
(15.100) |
(2.300) |
|
f. Other Expenditure |
2157.000 |
6549.900 |
|
g. Total |
8548.200 |
24988.800 |
|
3. Profit(+)/ Loss(-) from Operations before other Income Interest and
Exceptional Item(1-2) |
102.300 |
182.400 |
|
4. Other Income-Foreign Exchange Fluctuation-Gain/(Loss) |
(1551.200) |
(5739.400) |
|
6. Interest |
(9.400) |
83.700 |
|
7. Profit(+)/ Loss(-) after Interest but before Exceptional Item (5-6) |
(1560.600 |
(5823.100) |
|
8. Exceptional Items |
0.000 |
0.000 |
|
9. Profit(+)/
Loss (-) from ordinary activities
before Tax (7-8) |
(1560.600) |
(5823.100) |
|
10. Tax Expenses |
(367.400) |
(1739.100) |
|
11. Net Profit(+)/ Loss (-) from ordinary activities after Tax (9-10) |
(1193.200) |
(4084.000) |
|
12. Extraordinary Items |
0.000 |
0.000 |
|
13. Net Profit (+)/ Loss(-) for the period (11-12) |
(1193.200) |
(4084.000) |
|
14. Paid Up Equity Share Capital (Face Value of Rs.10 Per Share) |
0000 |
0.000 |
|
15. Reserves excluding Revaluation Reserves as per Balance Sheet of
Previous Accounting Year |
0.000 |
0.000 |
|
16. Earning per Share (EPS) |
|
|
|
a) Basic and diluted EPS before extraordinary items for the period,
for the year to date and for the previous year (not annualised) |
(0.31) |
(1.06) |
|
b) Basic and diluted EPS after extraordinary items for the period,for
the year to date and for the previous year (not annualised) |
(0.31) |
(1.06) |
|
17. Public Shareholding |
|
|
|
Number of Shares |
0.000 |
26557094 |
|
% of Share holding |
0.000 |
68.17 |
|
18. Promoters and promoter group Shareholding |
|
|
|
a) Pledged/Encumbered |
|
|
|
- Number of shares |
0.000 |
2150000 |
|
- Percentage of shares (as a % of the total
shareholding of promoter and promoter
group) |
0.000 |
17.34 |
|
- Percentage of shares (as a
% of the total share capital of the
company) |
0.000 |
5.52 |
|
b) Non-encumbered |
|
|
|
- Number of shares |
0.000 |
10252650 |
|
- Percentage of shares (as a % of the total
shareholding of promoter and
promoter group) |
0.000 |
82.66 |
|
- Percentage of shares (as a
% of the total share capital of the
company) |
0.000 |
26.32 |
FIXED ASSETS
- Computer
- Office Equipment
- Furniture and Fittings
- Building
- Lease Hold Improvements
- Intangibles - Software
WEBSITE
DETAILS
PROFILE:
Four Soft is the world's largest transportation and logistics software
products company providing innovative and integrated enterprise solutions
ensuring customer satisfaction. Founded in 1999, Four Soft software engineers
are providing solutions to enterprises across the SCM market place. Four Soft
is head quartered in
The Four Soft portfolio of products comprises logistics software
solutions for freight forwarders, NVOCCs, customs brokers, container freight
stations, ships agents, warehouses, cartage, trucking and 3PL / 4PL companies.
Four Soft currently has 300 customers with 50,000 plus users in across 120
countries.
Leveraging the world-class product delivery capabilities, technological talent,
domain expertise and strategic partnerships with major vendors and growing
client base, Four Soft has become a key player in the global IT SCM market.
Four Soft has consistently demonstrated its commitment to developing
cost-effective, quality applications by adhering to strict time-lines. This has
enabled Four Soft to work with some of the Fortune 200 / 500 / 1000 companies
as their technology “Partner of Choice” on a continuous basis.
News Release :
Four Soft Signs
Significant Contract with Vantec Corporation
To implement 4S eLog® warehouse management solution across its locations
April 06th, 2011, Hyderabad: Four Soft (4S) (NSE: "FOURSOFT", BSE: 532521), a global leader offering software solutions for transportation and logistics, announced today that Vantec Corporation in Japan has selected 4S eLog® to automate the management of its warehousing facilities located across multiple locations. The contract was executed through FOURSOFT K.K., Japan a subsidiary of Four Soft Limited, India. Vantec Corporation is a leading Japan based organization offering integrated logistics solutions to its customers globally. There are 6 Japanese and 18 Global Companies in the group. It has over 40 operating networks globally. The organization is continuously seeking improvements by expanding its overseas business and upgrading their integrated logistics services.
Tetsuo Kamatsu, IT
Director, Vantec Corporation, said,
“We are very pleased to announce our association with Four
Soft as a leading solution provider of warehouse management solution to Vantec
Corporation. After a thorough selection process to match the best fit for our
growing business requirements, we felt that the WMS solution from Four Soft was
the best strategic match as it had the required expertise, flexibility and had
been clearly positioned to act as a control tower to simplify the management of
most complex warehouse operations that our organization undertakes across its
multiple locations”.
Rajshekhar Roy,
CEO,Four Soft, said,
“We are delighted to mark a new beginning and establish our
association in Japan with the signing of Vantec deal for our advanced and
integrated Warehouse Management Solution, 4S eLog®. This engagement with Vantec
helps strengthen our presence in Japan. Furthermore Our Pipeline for sales in
Japan is strong and we are looking at some significant deal closures in this
quarter and the next.”
Rakesh Kumar
Munigala, VP & MD - Singapore and Japan, Four Soft Limited, said,
“We are excited to implement our advanced warehouse
management solution (WMS) across multiple locations in Japan. This opportunity
provides us the gateway to grow our business presence with Vantec in the
Japanese Market. The WMS solution from Four Soft has the ability to integrate
business operations and improve growing business complexities of Vantec and its
customers.”
4S eLog® built on J2EE platform, covers all aspects of
warehouse management including multiple sites and multiple clients being
managed from within a single environment. 4S eLog® has full RF capabilities and
offers web visibility to clients, their customers and their suppliers. With
optional automated inbound and outbound processing and workflow management, 4S
eLog® helps manufacturing, distribution and 3PL companies move their products
with greater efficiency through their warehouse facilities to their customers’
locations.
About Four Soft
Limited
Four Soft is a public listed and CMMI level 5 certified
company which provides innovative software solutions, IT consultancy and BPO services
exclusively for the logistics and supply-chain management market place. It is
the market leader in the transportation and logistics segment with a large
international client base including the majority of the top logistics &
transportation companies in the world. With regional offices strategically
located worldwide, it supports customers including DHL, DB Schenker, UTI and
Geodis Wilson. Additional information about Four Soft is available at www.four-soft.com
Four Soft offers a full suite of web-native products across
the logistics supply chain. This includes 4S eTrans® for freight forwarding and
logistics, 4S eLog® for extended warehouse management, 4S Visilog® & 4S
VisiLog plus® for track & trace, visibility and supply-chain management, 4S
eCustoms® for customs brokerage, 4S iShipping® for shipping line execution, 4S
eConnect® for business-to-business connectivity and 4S Infotips for informed
decision making.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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. 44.30 |
|
|
1 |
Rs. 72.92 |
|
Euro |
1 |
Rs. 64.69 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
No |
|
--AFFILIATION |
YES/NO |
Yes |
|
--LISTED |
YES/NO |
Yes |
|
--OTHER MERIT FACTORS |
YES/NO |
Yes |
|
TOTAL |
|
52 |
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 |
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 |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.