The financial statements for the past years also do not exhibit a healthy picture. The company has incurred losses for most of the past years. PAT for FY00 is jus Rs0.6mn, which is too small a size for tapping the primary market. However, reason for this disposal has not been stated in the prospectus. Two out of the three promoters of the company, Mr. Hari Mohan Sharma and Mr. H. K. Najundaswamy have no experience in the field of software.
Investors can safely avoid the issue.
Background Datanet Systems Ltd was incorporated in March 1995 as a public limited company with the name Datanet Corporation Limited. Subsequently, the name of the company was changed to reflect the activities of the company clearly in technologies of Workflow Automation Systems and Computer Telephony Integration, which are parts of the Information Technology Industry. The company has its own development centre at Bangalore. It is an existing company with over 5 years in the IT Sector in the area like Workflow Automation and Computer Telephony Integration. The company has been promoted by Dr A Prabhakar, Mr Hari Mohan Sharma and Mr H K Nanjunda Swamy.