AXISCADES TECH Share price

IT&T was formed in 1990 by professionals from the IT industry tocarry on the business of third party computer maintenance. Thepromoters began the Company with a capital of Rs.96 000. As onMay 2000 IT&T has over 270 employees serving a customer base ofmultinational and Indian companies.The company was incorporated as I.T. and T. Enterprises PrivateLtd. on August 24 1990. Subsequently it became a deemedpublic company under section 43A with effect from 1st July 1996.Later on with effect from 7th January 1998 it was renamed asIT&T Limited and was converted into a Public Limited company bySpecial Resolution passed on 24th April 2000.In the initial years the company was instrumental in managingBusiness on contract basis for several large IT companies likeDCM Data Products ICIM (an RPG Group company) ElectronicsState Punjab Limited (ESPL) and Motorola. The serviceslaunches trainings for IT sales and technical staff andmarketing channel development. The gave both these companiesand the management team of IT&T a deeper understanding of theevolving IT market in India.Software Business :In 1993 IT&T started its Software Development Business. Itdeveloped various commercial applications for clients includingDCM Benneton Continental Float Glass Ltd. Surya Roshni Ltd.Dabur India Ltd. JK Corp Ltd. JK Udaipur Udyog Ltd. OrissaSynthetics Ltd. National Dairy Development Board (Fruit andVegetables) etc. Over the years IT&T has been usingtechnologies/Software like Digital's VMS Embedded Cobol DECForms RDB Sybase Oracle 6 7.x Oracle 8i Developer 2000SQL Server Visual Basic and C++IT&T has evolved its business model over the last few years fromcore software development migration and maintenance to WebEnabling Software. In July 1999 Mr. Rohitasava ChandExecutive Chairman and Promoter of IIS Infotech Ltd. joinedIT&T as its Executive Chairman. Mr. Chand has since helped toreposition the software business of IT&T by focussing onemerging Internet technologies and web enabled Services.Mr. Rohitasava Chand brings with him over 30 years of experiencein the Software Development Business. This has provided newimpetus to the company's Software Business which has beenreflected in the growth of profits for the Financial Year endingMarch 2000 whereby the Profit after tax has increased to Rs 356lakhs from Rs 43 lakhs in the previous year IT&T believes ithas moved up the `Value Chain' in the Information Technologyindustry. The company has established an in-house SoftwareTechnology Park (STP) for the purpose of addressinginternational opportunities in the e-transition business. Thisfacility in New Delhi is being upgraded to a much largerfacility in Noida and would ensure the company tax-free profitsfrom its export activities for the next nine years.The Company now plans to invest in new emergingtechnologies-Internet and IT-Enabled Services. IT&T plans toembark upon an initiative to position itself as an Internetcentric company. This would involve setting up offices inUnited States of America by the Company.IT&T has embarked upon an initiative to leverage its knowledgeand experience in Systems Integration and Networking Services toservice the growing e commerce market and is focussing on thefollowing 3 areas for growth and profits :i) E-transition IT-development of product and technology for ecommerceii) Netmanage IT-Web Enabled Technology Support Centresiii) Smartsource IT - Creating and managing B2B E-market placefor Information Technology Product and ServicesIT Infrastructure Management :In 1992 the Systems Integration business of IT&T came intoexistence and began with the marketing of IT solutions tocustomers using products like Digital VAX's. This was followedby marketing and servicing of PC based networks in 1993. Insubsequent years IT&T established relationships with CompaqIBM BAY Networks AMP Microsoft Oracle 3 COM Bharti BTamongst others. This helped the company to emerge as one of theprominent player in the systems and network (LAN/WAN)integration business.In 1996 IT&T announced a wider set of IT services termed asFacilities Management Services to various clients including CocaCola Castrol Ranbaxy Laboratories Ltd. etc.In the last 4 years IT&T has focussed on developing theFacilities Management & Out-Sourced Services for the Indiancustomers by studying their requirements and introducing themgradually to the advantages of `Managed Services'. IT&T hasbeen ranked as India's No.2 third party maintenance and supportservices company in 1999 by Computer World (Source : ComputerWorld July 1999).At present IT&T provides services to customer out of its 15branches and 50 support locations which are spread across thecountry. IT&T is selectively engaged in the Networking andSystems Integration business. With this strategy IT&Tcontinues to service the entire IT Infrastructure Managementneeds of its customers. IT&T's plan of increasing its capitalbase is expected to improve its growth and position in theindustry.IT&T has shown a revenue of Rs 2060.64 lakhs for the year endingMarch 31 2000 and a Profit after Tax of Rs.356 lakhs for thesame period. This has resulted in an increase of PAT by 728%over the previous year. This has been on account of more than84% of the profits coming from the Software Business of thecompany.Capital History :The company issued equity shares at par of Rs.10/- eachaggregating to 100 9300 40600 5000 100000 and 250000 as on01-09-1990 30-03-1991 01-04-1993 31-03-1996 27-3-1997 and04-05-2000 respectively. A bonus issue of 80000 shares was madeon 31-03-1999. The company also issued 317000 shares of Rs.10/-each at a premium of Rs.17.30 on 28-07-1999.The company has recently issued 4214400 equity shares by wayof bonus shares to its existing shareholders on 28th of April2000 in the ratio of 16 shares for every 5 shares held.Further on 5th July 2000 the Company issued 3660 shares ofRs.5/- each to employees at par. On 19th July 2000 the Companyissued 30300 shares of Rs.5/- each at a premium of Rs.76 eachto NRIs.The company had taken a term loan of Rs.29.10 lakhs as on31.3.2000 from Canara Bank for construction of its building atNOIDA.