PCS TECHNOLOGY Share price

VII. COMPANY & MANAGEMENTHISTORY BACKGROUND & PRESENT ACTIVITIES OF THE COMPANYThe Company was incorporated as PCS Data Products Private Limited onApril 22 1981 in the state of Maharashtra. By authority of a specialresolution passed by the Company it adopted a new set of Articles ofAssociation applicable to a public limited company on July 22 1987.The name was also changed to PCS Data Products Limited from that date.Subsequently the Company obtained a fresh certificate of incorporationupon change of its name to PCS Industries Limited effective March 251994.Patni Computer Systems Private Limited had initially promoted theCompany. Subsequent to the setting up of separate group identities forPatni Computers Private Limited and PCS industries Limited the stakeof Patni Computer Systems Private Limited in the Company wastransferred to three private companies that are part of the promotergroup (PCS Cullinet Private Limited PCS Finance Private Limited andAshoka Computer Systems Private Limited). The controlling stake in theCompany currently continues to be held by these three privately heldcompanies which are owned by the promoters and their family members.The natural persons in control of the Company are Mr. Gajendra K.Patni and Mr. Ashok K. Patni.In the year 1989 the Company promoted PCS Data General India Limitedjointly with Patni Computer Systems Private Limited and Data GeneralCorporation of USA. This company commenced manufacture of UNIX-basedmachines in March 1990. Subsequently PCS Data General India Limited wasacquired by PCS industries Limited pursuant to a Scheme ofAmalgamation duly approved by the Mumbai High Court. On 19 March 1996PCS industries Limited issued 1365140 equity shares of Rs. 10 each tothe shareholders of PCS Data General Limited for this acquisition.PCS industries Limited today is a multi-activity multi-operationalorganization in the global computer hardware business space. When theCompany began its operations the world of information technology wasjust emerging it was the promoters' belief at that time that there waspotential of strong growth in this industry.Over the years the Company has established the recognized and respected"PCS" brand in the computer hardware business ranging from high-endservers to networking products desktops and notebooks supportservices for hardware & software network security solutions andintegrated services. The Company is also marketing Banking Software Solutions. It is now poised to enter the Software Development Services IT Enabled Services arenathrough the strategic acquisition route. The management is of theopinion that an acquisition with the correct fit will significantlyboost the Company's total revenues.The Company's state-of-the-art computer hardware manufacturingfacilities at Silvassa is the backbone of its current operations. TheSilvassa plant is a full-fledged ISO 9001:2000 certified manufacturingfacility with a capacity to manufacture a wide range of desktop andnetwork solutions.The Company has established a sales and service network. Thenationwide branch network spreads across 21 locations including 4regional offices. The Company has also established a number of servicelocations and a team of channel partners across the country.The Company's plant at Alandi near Pune city is designed to manufacturehigh quality Copper Clad Laminates with a capacity of 300000 sq.meters per annum. The plant commenced commercial production in February1992. In view of the dumping from Chinese and Far East manufacturersand resultant non-remunerative prices in the domestic market themanagement suspended operations at this plant.In the past the Company also had a separate division which wasregistered with SEBI as a Category I Registrar and Share TransferAgent. As this business does not fit into the Company's profile thebusiness has been discontinued and the registration and license havebeen surrendered to SEBI. All relevant documents and records in respectof this division's erstwhile client companies have been transferred tothe respective new Registrars and Share Transfer Agents of theCompany's former clients.The Company has a presence in the global market through its fully ownedsubsidiary PCS International Limited which is registered in Mauritiusand has located its manufacturing facility at the Jebel Ali Free TradeZone near Dubai city in the United Arab Emirates.The Company offers a suite of banking software solutions withmulti-lingual interface and with electronic mail banking capabilities -a product developed through out-sourced software development support.Maintenance and service contracts in respect of the Company's owninstallations as well as third party installations are an income sourcefor the Company. This income source is projected to grow steadily andto receive an additional boost from the Company's entry into theSoftware Development Services & IT Enabled Services sector through anacquired businessImportant Milestones Year - EventFebruary 1978 - The Company's original promoter Patni Computer SystemsPrivate Limited commences operations in the field of computer software.April 1981 - Patni Computer Systems Private Limited promotes PCS DataProducts Private Limited to manufacture computer hardware - mini andmicro-computers and peripherals.March 1982 - PCS Data Products Private Limited commences manufacture ofmini/ microcomputers and word processor based systems in leasedpremises.September 1986 - Shifting of factory to owned premises en Saki ViharRoad in Mumbai.May 1987 - PCS Data Products Limited and Data General inc. USA.promotes PCS Data General India Limited. The latter companysubsequently establishes a manufacturing plant at NOIDA near Delhi.July 1987 - PCS Data Products Private Limited adopts a new set ofArticles of Association applicable to a public limited company andbecomes PCS Data Products Limited.September 1987 - PCS Data Products Limited makes simultaneous publicissue of equity shares and partly convertible debentures aggregatingRs. 4.72 crores.1987-88 - Activity of Computer Centre to handle issue management anddata processing work commenced. This activity subsequently renamed asRegistrars and Transfer Agents activity.1988-89 - Commences manufacture of personal computers. Micro- andmini-computers gradually phased out.August 1990 - Rights cum public issue of Partly convertible debenturesaggregating Rs. 15.62 crores.February 1992 - Copper Clad Laminates Factory at Alandi in PuneDistrict commences production. Collaboration with AEG Isolier undKunststoff GmbH.February 1993 - Rights issue of equity shares aggregating Rs. 8.28crores.March 1994 - The Company changes its name from PCS Data ProductsLimited to PCS Industries Limited and obtains fresh certificate ofincorporation subsequent to the change in name.March 1996 - The Company sets up a new factory for manufacture ofpersonal computers at Silvassa.March 1996 - Merger of PCS Data General India Limited with PCSIndustries Limited w.e.f. April 1 1994 as per scheme of arrangementsanctioned vide Mumbai High Court Order dated July 20 1995.May 1996 - NOIDA factory discontinues operations and closed. Thisfactory had become part of the Company on merger of the erstwhile PCSData General India Limited with the Company.March 1998 - Annual sales of the Company cross the Rs. 100 crore mark.May 1998 - Preferential allotment of equity shares to Patni ComputerSystems Private Limited by way of conversion of warrants allotted tothem on a preferential basis earlier.November 2000 - Promoter shareholdings reorganized. Company's EquityShares and other investments/ immovable properties held by PatniComputer Systems Private Limited transferred to Ashoka Computer SystemsPrivate Limited PCS Cullinet Private Limited and PCS Finance PrivateLimited. The latter three being holding companies of the promoters andtheir family members. The transfers were as per the Scheme ofReconstruction approved by the Bombay High Court.September 1999 - PCS international Limited a 100% subsidiary of theCompany established in Mauritius with manufacturing branch in JebelAll Free Trade Zone (UAE).March 2001 - Annual sales of the Company cross the Rs. 200 crore mark.November 2001 - Operations of Copper Clad Laminates Factory at Alandiin Pune District temporarily suspended.March 2002 - The Company implements the applicable Corporate Governanceprovisions as applicable.March 2002 - The Company records its first ever loss for the year.May 2002 - The Company surrenders its registration as Registrar &Transfer Agent to SEBI and discontinues the business.