WEP SOLUTIONS Share price

The Company was incorporated on 01.03.1995 as a public limitedcompany in the name and style of Datanet Corporation Limited inNew Delhi and has a development centre at Bangalore. Theregistered office was shifted from New Delhi to Bangalore (Stateof Karnataka) and Company was issued new registration no. 25617from Registrar of Companies. State of Karnataka on 18.08.1999being certificate of registration of the order of Courtconfirming transfer of the registered office from one state toanother.The name of the Company was changed to Datanet Systems Limitedto reflect the activities of the company clearly in technologiesof Workflow Automation Systems and Computer TelephonyIntegration which are part of the Information TechnologyIndustry and fresh certificate of incorporation consequent onchange of name was issued by ROC on 03.03.2000. The Company isengaged in these activities since inception and object clausewas not modified to include any new Business activity. The namewas changed from DATANET CORPORATION LTD. to DATANET SYSTEMSLTD. as the word "Corporation" is general in nature and the word"Systems" focuses company''s business activities.The company was promoted by Dr. A. Prabhakar Mr. Hari MohanSharma and Mr. H.K. Nanjunda Swamy. Currently Datanet hasabout 64 professionals of whom 50 are graduates and postgraduates in electronics telecommunications and computerscience.Datanet is focused on developing technologies and solutions for`the conduct of commercial transactions on communicationnetworks''. Towards this Datanet has specialised in twotechnologies viz. (I) Business Process Automation Software(BPAS) (ii) Computer Telephony Integration (CTI). To furtherstrengthen this the company has developed expertise indeveloping smart card based solutions for the banking sector andPublic Key infrastructure(PKI) based security systems.Presently the Company is continuously developing BPAS theirproprietary business process automation platform. Using thisplatform they have been developing over the last four years andcontinue to develop a wide range solutions for the bankingsector. They have acquired good understanding of workflowmanagement based application development banking relatedbusiness processes and their interaction computerising themusing workflow management principles incorporated in BPAS and aninsight into the Indian banking systems. The Company believesthat their best competency will be in these technologies.During the last 3 years the company has executed variousprojects and sales to its main customers like Department ofPosts (Rs. 144 lakhs) The Federal Bank Ltd (Rs. 52 lakhs)Vysya Bank Ltd. (Rs. 49 lakhs) Syndicate Bank (Rs.11 lakhs) Sir M. Visvesvaraya Co-operative Bank Ltd.( Rs. 85 lakhs) andBank of Baroda for various products like total branchautomation any branch banking cash management system telewebbanking telebanking.From Bank of Baroda the company got its first order of Rs. 138Lakhs in 1999-2000 for supply and commissioning of ABB (AnyBranch Banking) Telebanking web-banking and Smart cards at 11branches and 1 hub; and CMS (Cash Management System) in 30locationsSubsequently the company got an order of Rs. 176 Lakhs for CMSin 49 locations and an order for Rs. 75 lakhs for ABBTele-banking and Web-banking in 26 locations and 1 hub. Theseorders are currently being executed by the company. However anamount of Rs.170 Lakhs has been booked as income against theseorders upto 31/3/2000.Company was also engaged in the activities of installationcommissioning and network design of spread spectrum wirelessdata communication network in 2.4 GHz band since 1996 under itsWireless Division. Major customer of this division was NationalInformatics Centre (NIC). This division has been disposed offto Harita Infoserve Limited (HISL) a TVS Group Company on agoing concern basis with effect from 5/11/1999 vide agreementdated 24/12/1999 at a total consideration of Rs.12868314/=(inclusive of sale of commercial rights for Rs.60 lakhs and Rs.40 lakhs for non-compete fee and Rs. 2868314/= book value ofthe net assets taken over). The entire consideration has beenrealised as on date. As per the other terms of the agreementall staff of the said division were absorbed with the transfereeCompany. Datanet will provide the technical support andconsultancy to HISL upto end of 2002 and shall be entitled toshare the profit after tax of this division at 50% of PAT inyear 2000 25% of PAT in year 2001 and 20% of PAT in year 2002.However the Company continued to carry on the operations ofthis division on behalf of Harita Infoserve Ltd. upto 31.03.2000to complete the projects in hand. HISL vide its letter dated24.12.1999 agreed to indemnify the Company against all thesetransaction.The company''s current project is for the expansion of existingactivities and augmentation of working capital and no newproducts are being planned. As per the appraisal of Bank ofIndia the major income in the future is expected to come fromthe Banking Sector only. The banking industry has largepotential for absorbing computerisation automation and other ITrelated activities. The company is aiming for only a smallportion of this growing business. Over the period the companyhas built up clientele in the banking sector in the long runthe company will also consider entering into other financial andbusiness process automation sectors using its establishedstrengths and clientele.Further the company has raised funds to the extent of Rs.478.17 Lakhs in February and March 2000 by allotment of sharesto promoters directors friends and relatives and utilised thefunds mainly to clear loans and towards working capitalrequirements. The details are as follows: (Rs.Lakhs)Sl. Particulars AmountNo.1 Repayment of Term Loans 93.432. Repayment of H. P. Loans 4.233. Normal Capital Expenditure 7.124. ESOP Trust 75.005. Repayment of Bank Loan 101.716. Margin for L/C & Bank Guarantees 114.617 Working Capital & Surplus 82.07 Total 478.17The company''s main software BPAS (Business Process AutomationSoftware) is copyrighted in the names of Mr. Dr. A PrabhakarMr. G. H. Vishweswara and Mr. M. K. Seshadri. The companyproposes to apply for the copyright of its other products in duecourse.The company has applied for registration of its brandnames/trade marks "BPRO": "Healthflow" "Tele server" "Bankflow" and "Datanet" in the year 1996. The registrationcertificate is yet to be received.The company has not entered into any software licensingagreements for the software products developed by it. Since theprojects undertaken by the company involve computerisation ofcrucial areas of business for large clients like banks anyfailure in the system of the client would be detrimental totheir operations. However the company has taken sufficientsteps to ensure that the company''s products are fail safe likeredundancy in system architecture capable back-up andintelligent disaster recovery software fall back operationalprocedures and software design techniques and site support bythe trained resident engineers.SUBSIDIARY COMPANYDatanet has no Subsidiary.