ALLDIGI TECH Share price

Allsec Technologies Limited (`Allsec' or the `Company') wasincorporated on August 24 1998 as a limited company under theCompanies Act 1956. The Company is engaged in the business ofproviding IT enabled services. The services provided by the Companyinclude data verification processing of orders received throughtelephone calls telemarketing monitoring quality of calls of othercall centers customer services and HR and payroll processing fordomestic companies. The Company has also invested in a wholly ownedsubsidiary in USA for the purpose of carrying out marketing activitiesfor the CompanyThe Company was incorporated on August 24 1998 under the CompaniesAct 1956 and was issued Certificate for Commencement of Business onOctober 16 1998. The registration number assigned to the Company onincorporation is 18-41033 of 1998.Main Objects of the Company1. To design develop market and implement computer software packagesfor clients in India and abroad and to acquire the necessary equipments- hardware and software and related know-how locally or from overseas.2. To offer and undertake professional services in India and abroad inthe areas of management computer and information technology andcommunication services database services internet and intranetservices including consultancy system study and analysis recruitmenttraining placements information processing maintenance and ail otherservices arising out of technological advancements in these areas.3. To buy sell market lease or deal in all manner computer hardwaresoftware peripherals communication equipments computer accessoriestraining materials components spare parts and other electronic itemsin India and abroad including internet and intranet systemssatellites and the like and such other products arising out oftechnological advancements in these areas.4. To engage in research and development activities relating tomanagement computer and information technology areas. Changes in Memorandum of AssociationThe main objects clause and the objects incidental or ancillary to themain objects of our Memorandum of Association enable us to undertakeour existing activities and the activities for which the funds arebeing raised through this Issue.Since our incorporation the following changes have been made to ourMemorandum of Association (MOA):Date of shareholder approval ChangesEGM dated March 20 2000 Increase in authorized share capital and amendment to MOAEGM dated August 31 2000 Increase in authorized share capital and amendment to MOAEGM dated April 3 2002 Increase in authorized share capital and amendment to MOAEGM dated January 142005 Increase in authorized share capital and amendment to MOAThe details of the capital raised by the Company are given in thesection titled "Capita! Structure" on page 18 of this Red HerringProspectus.History and Major EventsThe chronology of events since the Company was incorporated in August24 1998 is as follows:Year Key Events Milestones and AchievementsAugust 1998 Incorporation of the CompanyFebruary - July 2000 Setting up of 100 seat facility at R. A. Puram Chennai.September 2000 First round of venture capital funding from IDBISeptember 2000 Incorporation of Allsectech Inc. our 100% owned subsidiary in USANovember 2000 Contracted with our first clientJanuary 2001 Commercial outsourcing operation started at R. A. Puram facilityFebruary 2001 Entered into outsourcing contract with CompuCreditMarch 2001 onwards Started operation for CompuCredit processesAugust 2001 Setting up of TNPL FacilityOctober 2001 onwards Commencement of processes in TNPL FacilityMarch 2002 Second round of fundingMarch - August 2002 Expansion of R. A. Puram facility from 100 seats to 150 seats completed and facility was operational immediatelyApril 2002 Setting up of 400 seats at Velachery Chennai.September 2002 onwards Commencement of quality assurance pilot process for a Fortune 100 PC manufacturing companyJanuary 2003 Ramp up of quality assurance ProcessJanuary 2003 Received ISO 9001:2000 certificationNovember 2003 Strategic alliance with CompuCreditDecember 2003 HR payroll processing for a global IT consulting company IndiaMarch 2004 First technical support process startedJanuary 2005 Revised strategic agreement with CompuCredit.Shareholder AgreementsThe Company along with our Promoters (Mr. A. Saravanan and Mr. R.Jagadish) Euronet LLC (El) and Kotak Mahindra Venture Capital Fund(KMVCF through its trustee Kotak Mahindra Private Equity TrusteeLimited) entered into a Subscription Cum Shareholders Agreement (SSA)on April 8 2002. Pursuant to this SSA 55000 Equity Shares and1332250 Cumulative Convertible Preference Shares (CCPS) were allottedto El and KMVCF for a total subscription amount of Rs. 134875000 (intwo equal tranches). The SSA governs the rights and obligations of theparties inter alia prescribing the basis for conversion of the CCPSconditions precedent representations and warranties creation of aManagement Stock Option Plan (MSOP) procurement of term debtfacilities pre-emptive rights of El and KMVCF (including a Right ofFirst Refusal Tag Along Rights Drag Along Rights and buybackoptions) rights to nominate Directors on the Board and certainCommittees corporate actions requiring the affirmative vote of El andKMVCF and other operational issues. The aforesaid provisions of thisSSA will no longer be valid and shall automatically terminate upon thecompletion of this Issue.