Tuesday, 8 May 2018

DECCAN GOLD MINES LTD. - 512068 - Hutti Civil Appeals - Judgment Of Hon''ble Supreme Court Dated May 8, 2018

Supreme Court has announced its judgement in the Hutti mining Gold belt in the favor of Deccan Gold mines

We are pleased to report that the Hon’ble Supreme Court vide its above noted Judgment has set aside the Order passed by the Kamataka High Court dated April 3. 2012 and has allowed our Civil Appeal.

While a copy of the Judgment has been uploaded on the website of the Company lvmwdeccangoldmines.com) and is also available on the Supreme Court website, it may be noted that the Hon’ble Supreme Court has formed the View that:

(1) The Kamataka High Court erred in allowing the Writ Petition of Hutti Gold Mines Limited (HGML)= a PSU owned by the Government of Kamataka . This Writ Petition “as filed by HGML against the Order dated May 31, 2011 passed by the Central Government.

(2) The decision ofthe Central Government vide its Order dated May 31, 2011 is upheld. This Order had rejected the proposal of the Government of Kamataka for reservation of the Hutti iBIock areas in flavour of HGML by overlooking the Prospecting Licence (PL) applications of our subsidiary, Deccan Exploration Services Private Limited (DESPL)

3) The State of Kamataka is directed to consider the case of DESPL for grant of PL in accordance with the provisions of the Mines 6’; Minerals (Development <32: Regulation) Act, - 1957 as they now stand amended in the year 2015.

Hutti — Maski Belt Projects

Hutti Maski Greenstone belt is one ofthe most important Archaean gold bearing belts in India The Hum—Mask; belt hosts world class Hutti Gold deposit that is being mined by The Hutti Gold Mines Limited DESPL has carried out exploration over an area 851 sq. km in the Hutti Belt, which has resulted in identifying 21 gold bearing blocks. A total of 11 PL applications covering the 21 gold targets have been filed with the Kamataka State Government.



Monday, 7 May 2018

Deccan Gold Update - Hutti Civil Appeals - Pronouncement Of Judgment By The Hon''ble Supreme Court On May 8, 2018 (10.30 Am)

Deccan Gold Update - Hutti Civil Appeals - Pronouncement Of Judgment By The Hon''ble Supreme Court On May 8, 2018 (10.30 Am)

Dear Sirs, Sub: Hutti Civil A peals — P pronouncement of Judgment by Hon’ble SuPreme Court In continuation of our last update of April 23, 2018, we write to intimate that our Lawyers in the matter have informed us that the Judgment will be pronounced by the Hon’ble Supreme Court tomorrow (May 8, 2018) at 10.30 am. The website of the Supreme Court of India also indicates the same. We shall keep the shareholders updated of futher developments in this regard.

Link -https://www.bseindia.com/xml-data/corpfiling/AttachLive/231b0373-e7ec-4621-bd09-027dd05b2b94.pdf

Wednesday, 2 May 2018

DECCAN GOLD MINES LTD - Update On Company''s Operations

1) Ganaiur Gold Proiect — payment of40% acquisition cost to KIADB

We are very pleased to report that as noted in our earlier Update of April 4, 2018, our subsidiary Deccan Exploration Services Private Limited (DESPL) has paid an amount of Rs. 682 crore (inclusive of 10% ofprocessing fee) to Karnataka Industrial Areas Development Board (KJADB). By way ofbackground, it may be noted that KIADB would be facilitating the land acquisition process on behalf of DESPL and had determined the total acquisition cost of 200 acres of land (which includes the ML area of 72 acres) for the proposed mine, processing plant and infrastructure at Ganajur at Rs. 17 crores (approx). Further, KIADB had advised us to remit 40% ofthe tentative cost ofland as advance.

(2) Ganaiur Gold Project — pavment of initial advance to farmers (landowners):

As noted in our earlier Update of April 4, 2018, DESPL has completed the process of payment of initial advance @. Rs, 40,000/— per acre on a pro rata basis to the farmers who ovm land within the Mining Lease (ML) area of 72 acres It may be noted that DESPL has been carrying out its mineral exploration activities on these lands under lease agreement (5) with the land owners which are being renewed annually and has been paying lease rentals to them under those agreement (5), This initial advance amount “ill be adjusted against the final price payable per acre provided that the same is paid within a maximum period of 15 months from the date of the Agreement. Such final price will be determined in accordance with the provisions of Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 and be deposited with KIADB who will facilitate the land acquisition as noted above. We are also happy to report that the farmers (landovmers) have assured us of their support for the development ofthe Ganajur Gold Project and are keen to have their lands acquired for this purpose at the earliest:

Link: https://www.bseindia.com/xml-data/corpfiling/AttachHis/1ad1baeb-c1da-4ca4-bbef-cfcdf155a0c6.pdf

Tuesday, 24 April 2018

Deccan Gold Mines - All That Glitters is Gold

Deccan Gold Mines

 (DGML) is a unique company and an interesting play on gold mining. It is the first and only gold exploration company listed on the BSE, established in 2003 by promoters with deep roots in the exploration and mining sector.
DGML is involved in gold exploration in Karnataka and Andhra Pradesh where the activities have resulted in defining a number of gold prospects spread across these states.
Its ultimate objective is to advance these gold prospects into commercial gold production. DGML has so far explored an area of around 6,574 sq km in Dharwar Shimoga Greenstone belt, Hutti-Maski Greenstone belt, and Mangalur Schist belt in Karnataka.

Multi-parametric exploration techniques such as remote sensing studies, regional and detailed geological mapping, regional and detailed geochemical and geophysical exploration, topographic survey, various methods of drilling and multi-element chemical analysis were adopted in undertaking the exploration work, as per international standards.

India is a country rich in mineral resources. A major portion of the country is composed of Precambrian rocks which have hosted major gold discoveries worldwide. There were over a hundred gold mining centres in the early part of last century.
Despite having some of the best potential ground for gold mineralisation, India’s annual primary gold mine output has reduced significantly to below 5 tonne. India has suffered in developing its gold mining potential due to lack of adequate exploration expenditure, nationalistic policies of the previous governments and a non-investor friendly mineral policy.
The government is looking to revive mineral exploration and mining sector through foreign and Indian private investment and planned introduction of liberalised internationally compatible mining policies.
DGML with some of the best gold prospects in the country is geologically similar to areas that have been home to major world gold discoveries, playing a leading role in its revival.

Sunday, 3 December 2017

Intense Technologies BSE: 532326 (CMP 83.55)

Intense Technologies Ltd was established in 1990, CK Shastri is the promoter of the company. It is a publicly owned enterprise software products company headquartered in Hyderabad, India. It offers enterprise agility through the intelligent Enterprise Customer Communication Management, intelligent Enterprise Information Management and intelligent Enterprise Content Management Suites.
Since their inception, they have laid a supreme emphasis on attracting and retaining the brightest of talent - be it solutions architecture, software development, technical support or marketing. Their people work in close knit teams and comprise of both specialists and multiplexers, motivated by a simple methodology –get the work done. Moreover, they do aim at going beyond tasks and roles when they build their teams, with the final focus always being on the customer and the delivery of innovation.
Their enterprise agility Suites are best-fit for a wide range of applications across a number of verticals and proven to solve mission-critical enterprise challenges. SOA-driven, they are highly scalable, typically require no additional investments in the form of IT infrastructure or manpower and backed by a compelling value proposition.
Their flagship enterprise agility offering, the iECCM Suite is a comprehensive, end-to-end, enterprise customer communications solution best fit for ETL (Extraction, Transformation and Loading), Enterprise Application Integration, Communication Design, Output Management and Self-care applications. Chosen for enterprise-wide customer communications by more than 75% of India’s Telecom Operators, the iECCM Suite enables enterprises to use their obligatory customer documents (such as bills, statements, receipts, invoices, etc.) for delivering customer-focused Agile Customer Experiences.
Their process and knowledge agility offering, the iECM Suite is a robust solution for generic Document Management and Process Automation and has emerging applications such as Information Rights Management, Customer Application Forms Management, Service Provisioning Workflow Automation and Non-voice Customer Response management. The iECM Suite’s ability to establish electronic offices and digital knowledge repositories means that it can usher in metric-driven automation into any enterprise process, across any vertical, be it Telecom, Banking, Insurance, Manufacturing or so on!
The company is having domain expertise in :
  • Telecom
  • Banking & Finance
  •  Insurance
Solutions provided by the company:
  • iECCM Suite
  • iEIM Suite with Digital   Dashboard
Its flagship enterprise agility solution is the iECCM (intelligent Enterprise Customer Communication Management) Suite, an end-to-end process-unifying customer communications solution that helps enterprises turn their obligatory customer communications (and any other customer documents) into highly personalized, cross-sell and up-sell messaging enriched Agile Customer Experiences ,the iECCM Suite has a compelling value proposition and can (while significantly reducing costs) enhance customer service levels and speeds, compress time to market and transform enterprise customer communications into a strategic brand building competitive advantage.
  • Arab National Bank
  • Commercial Bank of Kuwait
  • First Gulf
  • GE Money
  • Bajaj Allianz
  • ICICI Prudential
  • Bharti Axa
  • Honda
  • Pepsico etc.
Why buy then?
 In the initial part of the report we have touched upon 5 reasons to buy, we will explain them one by one.
  1. New age product
  2. Large opportunity size
  3. Revenue visibility
  4. Low valuation
  5. Some telling signs that is difficult to ignore.
  1. New age product:
  • In a time when customer acquisition and retention is becoming one of the largest challenges and money drain for global corporations, UniServe provides end-to-end automation of customer on boarding for 50% faster turnaround and 40% reduction in customer acquisition costs.
  • Old large corporations ( Think SBI, LIC, BSNL) are under major threat to hold on to their customers and provide them a better service experience and running helter-skelter to find a solution for the same, this product we believe comes as a digital boon.
  • Intense is slated to launch modified second version of UniServe, UniServe-next this quarter itself. UniServe NXT helps enterprises build business agility with an objective to enhance customer experience by digitalizing customer centric business processes. This innovative platform radically reduces the application development and deployment timelines to seamlessly transform existing eco system to cater to customer expectations based on federated architecture. The biggest benefit of this is, it can be used with company’s old hardware and software ensembles which radically reduce cost and time of implementing the new process. This is quite unique in the domain.
  1. Large opportunity size
Despite this key focus on customer experience, many enterprises engage their customers via isolated, disconnected channels. Across Telecommunications, Banking, Insurance and Financial Services industries, digital transformation of Customer Experience has become a key competitive differentiator and a CEO-level area of focus. Gartner too in its recent publication has underscored the importance of transforming customer experience and states that improving technology stacks within the customer interfacing layers of business is at or near the top of the list of investment opportunities for both private and public-sector enterprises.
  • The global digital transformation market is expected to reach $369.22 billion by 2020 from $150.70 Billion in 2015, at a CAGR of 19.6%
  • Global customer experience management market alone to grow at 17% CAGR from $3.77 billion in 2014 to $8.39 billion in 2019
    (Taken from Annual Report)
So, to conclude the focus towards customer experience and the sheer size of opportunity numbers leaves Intense a company of a tiny size (180 cr mcap) with an enormous headspace to grow if they can get their acts together and can remain ahead in the value curve.
  1. Revenue visibility:
  • In June 2016 Intense was awarded a multiyear contract of around INR 175 cores by one of the large telecom player of India, which gives fare visibility of revenue for near future. This is quite large if one compares it TTM revenue of only 49 cr. This looks like a onetime large order, while regular orders would keep coming in.
  • Apart from this Intense has recently signed their first ever first ever contract in North America with their largest privately held wireless provider. The engagement entails deployment and support of UniServe platform to assist the client’s enterprise business in governance & risk, reports and analytics domains for an undisclosed deal amount.
  • Intense has also got into a multiyear deal with world’s second largest telecom player based in Europe (Read Vodafone) with their UniServe product again for a undisclosed deal amount.
  • A media and communications company, projected to be the largest in its class across the globe, with an investment of more than $20 billion, has chosen UniSer ve platform for customer engagement
So, overall, Intense has a robust order book at hand now, and this should help them to bring stability in their numbers. Also, this should allow us even more breathing space to deploy some R&D and Sales and marketing budget to stay ahead of the curve, which is a prerequisite in this business.
  1. Low valuation:
The largest player in the business is SalesForce with market cap of $52 billion and yearly revenue of around $6 billion. So, one can safely conclude that for this kind of business market provides high valuations and almost 9x to sales in this case. On that math Intense valuation too come near to 540 cr, while it is only around 180 cr now. We understand fully that Intense is no match to Salesforce and this is a lame comparison, but this somewhere goes on to say, if things go well, Intense too can command big valuations.
Also, given the one large order (whose deal value is known) almost equals it market cap, again indicating comfortable valuations.
  1. Some telling signs that is difficult to ignore
Small company, big dominance:
  • Intense serve customers in 30+ countries across 4 continents, with a 70% market share in telecom domain in India (Telecom had been their area of focus, now they are getting into banking, insurance, travel etc.)
  • Intense processes 25 billion USD worth of client revenue data, help onboard 1 million customers daily, and have a 500 million customer base across clients
  • Big client base comprising of names like Reliance Jio Bharti Airtel, Idea Cellular, Aircel, Omantel, Etisalat,Robi, ICICI Prudential Life Insurance, GE Money, Bharti AXA Life Insurance, Government of India-Income Tax Dept., and many more
Valued by the people | corporate who knows better than us
  • Reliance Jio launched with e-KYC done by Intense guys
  • The first banking client Intense roped in is the largest private bank in India
  • World’s second largest telecom player relies on UniServe
Identified and awarded by prestigious international institutions
  • UniServe NXT platform has been recognized as the best of Future IT (Emerging technologies) by world renowned iCMG architecture awards panel for 2016
  • Intense got mentioned in prestigious Gartner and Forrester magic quadrant wave report for customer communications management this year.
  • Intense has also received the Da Vinci TT100 Business Innovation Award. It is South Africa’s longest running most prestigious innovation award supported by Dept. of Science and Technology
When it comes to complex software product like this, we can count on experience of such large corporate CTOs or business bodies to understand and choose the better product. To our mind this hints Intense’s superiority of product, pricing, sales ability to a large extent.
A small cohesive team with interests directly aligned with minority stake holders
  • Intense boasts of very low attrition rate, which is far below industry standards
  • The current core team has been together since the inception, which means working together for as long as 17 years!
  • The CEO Jayant Dwarkanath owns 6% of the company; so the better he perform the richer he gets, along with us 😉