Datamatics Global Services Share price

BRIEF HISTORY OF THE COMPANYThe Company promoted by Dr. Lalit S. Kanodia and Mrs. Asha L. Kanodiawas incorporated on November 3 1987 as Interface Software ResourcesPrivate Limited to provide computer and electronic data processinglinked services. In 1989 Latasha Lonicera Linium Lusitania andLigure promoted by Dr. Lalit S. Kanodia acquired shares in theCompany. The name of the Company was changed to Datamatics TechnologiesPrivate Limited on December 18 1992 to carry out informationtechnology enabled services mainly in the area of electronicpublishing. On January 14 1999 the Company became a deemed publiccompany pursuant to the provisions of section 43A of the CompaniesAct. Pursuant to a resolution of its members dated December 27 1999the Company became a public company. By a certificate dated January 132000 the name of the Company was changed from Datamatics TechnologiesPrivate Limited to Datamatics Technologies Limited. The Company hasover the years developed competencies in the business processoutsourcing segment and has moved up the value chain by providing asuite of services including content management back office processingand related software services in the fields of workflowapplication/solutions data warehousing data management datamigration/consolidation to its customers worldwide. The Company offersend-to-end solutions catering to diverse industries.Highlights:l The Company made a modest beginning by setting up facilities inSEEPZ Mumbai. Today the Company operates out of 30419 sq. ft inSEEPZ (registered as a SEZ) as well as approximately 40000 sq. ft. inMIDC Andheri Mumbai. The Company has also leased property admeasuring2666 sq. ft. in Chennai to augment its facilities. Both the propertiesin MIDC and Chennai are registered with the Software Technology Park ofIndia. The lease agreements pertaining to the properties of the Companysituated at 110 and 118-120 SDF IV SEEPZ Andheri (E) have expired.The Company has submitted renewed lease agreements pertaining to theseproperties for adjudication before the stamp authorities and isawaiting adjudication of the same. Upon receipt of stamped leaseagreements from the stamp authorities the Company proposes to executerenewed lease deeds. The two lease agreements pertaining to theproperties at 101/2 and 101/3 Kanaksri Nagar Cathedral Road Chennaiexpired on December 2 2003 and February 6 2004 respectively. TheCompany has sought an extension of these leases. The Company proposesto shift its operations in Chennai for which a leasehold property10000 sq.ft. has been identified. As mentioned in the section ?Objectof the Issue? at page 27 the Company proposes to fund the deposit forthis property out of the proceeds of the Fresh Issue.l Boshu Information Systems Private Limited a company operating inSEEPZ was acquired and became a subsidiary of the company in January1998. Subsequently its name was changed to Datamatics SoftworldPrivate Limited (DSPL) on July 31 1998. Being in the same businessthe management decided to amalgamate DSPL with the Company. The HighCourt of Judicature at Mumbai passed the order for merger of DSPL withthe Company with retrospective effect from April 1 1998. As per thescheme sanctioned the amalgamation has been accounted for on the?pooling of interest method? as prescribed by the Accounting Standard14 issued by the Institute of Chartered Accountants of India.Accordingly the assets and liabilities of the erstwhile DSPL have beentaken over at their book value as specified in the scheme ofamalgamation. Prior to the amalgamation DSPL was a wholly ownedsubsidiary of the Company. Consequently at the time of theamalgamation the shares of DSPL were cancelled and no new shares wereissued by the Company.l As a strategic investment the Company acquired a 5% stake in SaztecInternational Inc. in 1996. In 2000 the Company increased its staketo over 40% which has been since increased to 100% in November 2003.l In July 2000 the Company established a subsidiary called DatamaticsInfosolutions Limited to further enhance the export of informationtechnology enables services. SEEPZ Mumbai allotted DatamaticsInfosolutions Limited about 16000 sq.ft. of office space for theseactivities.l In June 2001 the Company established a subsidiary called DatamaticsTechnologies Inc. (USA) as a marketing and customer relationship arm.l In 2002 the Company established a subsidiary in Germany calledDatamatics Technologies GmbH as a marketing and customer relationshiparm.l In July 2003 the Company formed a joint venture with CadmusCommunications Corporation called KnowledgeWorks Global Limited toprovide a full range of content processing content management andrelated services to scientific technical and medical journalpublishers and other organizations around the world. CadmusKnowledgeWorks International Limited (a subsidiary of CadmusCommunications Corporation) owns 80% in the joint venture while theCompany holds 20% of the same.l In 2003 the Company purchased 100% stake in CorPay Solutions Inc.an accounts payable processing company in the US.