SAKSOFT Share price

History and Background:Saksoft Limited was incorporated on November 24 1999 as `Sak InfotechLtd.' under the Companies Act 1956 and obtained certificate ofcommencement of business on 17th January 2000. The name was changed toSaksoft Limited on September 30 2002 and fresh certificate ofIncorporation was received consequent to the change in name.The Registered Office of the Company was transferred from NCT of NewDelhi to Chennai Tamil Nadu on October 11 2004 vide a freshcertificate of registration from the Order of the Company Law Boardunder Section 16(3) of the Companies Act 1956 and is situated at `SriRam Nivas' 38 V.K. Iyer Road Mandaveli Chennai - 600 028. Thecorporate office and the whole time directors are based in Chennai andhence for operational convenience the registered office has beenchanged from Delhi to Chennai.The company was promoted with the objective of providing IT solutionsfor business problems in the banking financial and insurance sectors.The company has its corporate office and main development center atChennai (`Sri Ram Nivas' #38 V K Iyer Road Mandaveli Chennai 600028India).The deployment of the internal accruals is as below:Sr.No. Investment Description Amount (Rs. Lakhs)1. HDFC Cash Management Fund 72.912. Deutsche Insta Cash Plus - Daily Dividend 104.113. FT India Monthly Income Plan 96.994. Templeton MIP - Half-yearly Dividend 98.655. Grindlays Floating Rate Fund 100.056. Cash & Bank balances 282.67 TOTAL 755.382. Incase of shortfall in issue proceeds the same will be met out ofinternal accruals. Pending any use of the net proceeds of the IPO thecompany will invest the funds in high quality interest bearing liquidinstruments including deposits with banks.History and Background:Saksoft Limited was incorporated on November 24 1999 as `Sak InfotechLtd.' under the Companies Act 1956 and obtained certificate ofcommencement of business on 17th January 2000. The name was changed toSaksoft Limited on September 30 2002 and fresh certificate ofIncorporation was received consequent to the change in name.The Registered Office of the Company was transferred from NCT of NewDelhi to Chennai Tamil Nadu on October 11 2004 vide a freshcertificate of registration from the Order of the Company Law Boardunder Section 16(3) of the Companies Act 1956 and is situated at `SriRam Nivas' 38 V.K. Iyer Road Mandaveli Chennai - 600 028. Thecorporate office and the whole time directors are based in Chennai andhence for operational convenience the registered office has beenchanged from Delhi to Chennai.The company was promoted with the objective of providing IT solutionsfor business problems in the banking financial and insurance sectors.The company has its corporate office and main development center atChennai (`Sri Ram Nivas' #38 VK Iyer Road Mandaveli Chennai 600028India).Though there are several software vendors some of whom provide ITservices to the banking industry the company felt that a focus ondomain knowledge and understanding business problems was lacking. Mostsoftware vendors were focused on IT solutions from the technologyperspective. The company planned to set up a group of people withbanking operations knowledge who would guide and help the technicalteam to build IT solutions for business problems from an end userperspective. This group of people would comprise the "BusinessConsulting Group" or BCG and this was considered a differentiator inthe market. The company set its vision to be a significant player inthe financial services IT outsourcing market with a portfolio ofservices tools and products.The company took on lease rental a space of 16000 sq.ft across 3 floorsin Sri Ram Nivas 38 V.K Iyer Rd. Mandaveli Chennai 600028. It beganoperations in April 2000 by building the complete interiors on the 3rdfloor (6000 sq.ft.). In the year 2001 it built interiors for the 2ndfloor and partly for the mezzanine floor. By the year 2004 the entirespace plus additionally lease rented space (2000 sq.ft) in the samepremises were completely furnished.The company established its second development center at NOIDA in March2004. The NOIDA software development center located at B 35-36 sector80 Phase 2 NOIDA 201305 (U.P.) was taken on lease in January 2004.The floor area of the building taken on lease is 33000 sq. ft.comprising ground floor and two upper floors of which the ground floorof 11000 sq. ft. area was furnished in March 2004. The objective ofestablishing a second development center in NOIDA was to take advantageof the relatively easier availability of trained personnel in NOIDA andalso to provide a continuity of business plan for the company's majorcustomers from a second location. The NOIDA facility will provide thecompany with the necessary contiguous space to grow its manpower andinfrastructure in the coming years.The lease details are as below:Landlord name and address Leased space Lease Lease in sq.ft Rental Deposit Chennai Noida Rs. Per sq.ft.Alamelu Subramaniam 12100 15.60 10 months' 223rd Seaward Road Rent Valmiki Nagar Chennai 41 S.Venkataraman 4014 15.60 10 months' 22 3rd Seaward Road Rent Valmiki NagarChennai 41 Sakserve Pvt Ltd 2388 15.00 10 months' 38 VK Iyer Road Rent Mandaveli Chennai 600028* Sak Industries Ltd 33000 10.00 Nil Chandiwala Estate Maa Anand Mai MargKalkajiNew Delhi 110019** Total 18502 33000Landlord name and address Lease Remarks Period Alamelu Subramaniam 9 years from Unrelated Party223rd Seaward Road February 2000Valmiki Nagar Chennai 41 S.Venkataraman 9 years from Unrelated Party223rd Seaward Road February 2000Valmiki NagarChennai 41 Sakserve Pvt Ltd Renewable every Related Party38 VK Iyer Road 11 Months.Mandaveli Last renewal fromChennai 600028* September 2004 Sak Industries Ltd 3 years from Related PartyChandiwala Estate January 2004Maa Anand Mai MargKalkajiNew Delhi 110019** * Sakserve Pvt Ltd is an associate company of the promoters. SakIndustries Ltd is one of the promoters of Saksoft Limited.** It may also be noted that no lease deposit has been paid to SakIndustries Ltd for the 33000 sq.ft. of space leased at Noida.After building the initial development team and doing internationalbusiness development the company began providing services on a regularbasis by October 2000. Slowly the company made inroads and beganoffering services to several customers in Singapore. The firstlarge-scale order was from Morgan Stanley UK for a credit card MISapplication.The company started its Singapore Subsidiary (Sak Software Pte) inAugust 2000 to manage operations in Singapore and Asia Pacific. Itopened a branch office in London in June 2001 to manage business fromthe U K market and established a subsidiary in Germany in January 2003.The company acquired the business and assets of Synertech Inc. basedat Boulder USA in January 2001 and renamed it as Saksoft Inc. Theacquisition of Synertech gave the company a foothold in USA and abusiness base to leverage. The company shifted its US headquarters toNew York and closed the Boulder office permanently in January 2003 foroperational ease and logistical simplicity. From slightly differentnames (Sak Infotech in India Sak Software Pte in Singapore and SaksoftInc in USA) used between the company and its subsidiaries 'Saksoft'was adopted as the uniform name and identity across all operations inSeptember 2002.In September 2002 the company acquired the business assets of Neem TreeTechnologies Private Limited (Neem Tree Technologies) Chennai alongwith all personnel associated with the business. Neem Tree had a productsuite (Neem Tree EBT suite) for the corporate banking space thatincluded treasury and money market operations. This acquisition enabledthe company to acquire a customer base which included State Bank ofIndia Central Bank of India Oman International Bank and Andhra Bankamong others. Using the business credentials and product suite thecompany acquired Punjab National Bank as a customer and sold severalupgrades and enhancements to the existing customer base. Thisacquisition helped the company understand the complexities of managingand integrating operations in an M&A scenario.