TURNAROUND STORY Forward-Looking Statement
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ANNUAL REPORT IRIS BUSINESS 2019-20 SERVICES LIMITED TURNAROUND STORY Forward-looking statement In this Annual Report we have We cannot guarantee that these disclosed forward-looking information forward-looking statements will be to enable investors to comprehend realized, although we believe we have our prospects and take informed been prudent in our assumptions. The investment decisions. This report achievement of results is subject to and other statements - written and risks, uncertainties and even inaccurate oral - that we periodically make, assumptions should be known contain forward-looking statements or unknown risks or uncertainties that set out anticipated results based materialize, or should underlying on the management’s plans and assumptions prove inaccurate, actual assumptions. We have tried, wherever results could vary materially from those Turnaround story. possible to identify such statements anticipated, estimated or projected. by using words such as ‘anticipates’, We undertake no obligation to ‘estimates’, ‘expects’, ‘projects’, ‘intends’, publicly update any forward-looking ‘plans’, ‘believes’ and words of similar statements, whether as a result of new substance in connection with any When we went into business with a focus on information, future events or otherwise. discussion of future performance. regulatory technologies, we faced a number of challenges. We needed to evangelise the format; we needed to market our capability. Contents It took us effort, time and financial resources to address both. During this period, which Corporate Many of our global clients lasted a number of years, the Company was 4 snapshot 24 are respected regulators required to invest with the perspective of building the business. Timeline Some of the largest Indian 6 26 entities trust IRIS After four years, IRIS achieved break- even and turned around in 2019-20. The IRIS. We thank all our Speaking to reputed partners from insiders Company generated an EBITDA (Earnings 8 across the world 28 Before Interest, Taxes, Depreciation and How we have made Management discussion governance our foundation and analysis Amortization) of C8.25 cr and reported a 9 at IRIS 30 profit after tax of C0.46 cr. Our clients are from Notice all over the world This has validated what we had always 10 37 believed: that the potential of our large CEO Directors’ addressable market would, when coupled 12 Letter 44 Report with our capability, eventually translate into A conversation with Standalone financial an attractive business that would generate 14 Chief Financial Officer 85 statements attractive returns. Our large Consolidated financial 16 addressable market 122 statements Our sustainable 18 competitive advantage How IRIS protected the interest of stakeholders 23 during the Covid-19 pandemic We are pleased to communicate that 2019-20 was a turnaround year. 26 2398 C in Lakhs C in Lakhs C in Lakhs % increase % increase in in revenues, our EBITDA, 2019-20 2019-20 46.20 5157.38 1520 5.87 825.93 BPS increase % RoCE reported in FY in our EBITDA 2019-20 against a negative margin, 2019-20 10.15% in FY 2018-19 . 4096.46 3558.99 (516.18) 90.14 (610.39) 33.06 17-18 18-19 19-20 17-18 18-19 19-20 17-18 18-19 19-20 Revenues EBITDA Profit After Tax 2 IRIS Business Services Limited Annual Report 2019-20 3 IRIS Business Services Limited. Background Promoters Products and services IRIS Business Services Limited IRIS has been promoted by IRIS commenced its journey in commenced business in 2004. Over Swaminathan Subramaniam, regulatory solutions by offering Addressing the regulatory the years, the Company emerged Balachandran Krishnan and XBRL-related services and as a leading global player in the Deepta Rangarajan who possess consultancy to domestic and compliance niche. regulatory technology space. The the experience of six decades and offshore clients. Over time the Company provides solutions in the have been together since 1994. Company segregated its offerings area of compliance, data and analytics They came together to address the into three segments – Collect, with offerings across the information research needs and solve the data Create and Consume - as per A space that is growing rapidly. supply chain and data reporting problems of institutional investors. customer needs. standards (XBRL and JSON, among But very soon they turned to others). Over the past four years, the creating a business around the A space that is becoming the Company has made a successful shift emerging demand for a robust from a services-focused business to a digital reporting framework built on backbone of organizational product-led model. a foundation of data standards. existence. Consume Create Software tools for data Collect Offerings range from A space that assures stakeholders analysis. Plus: a global Software platform for enterprise software to Cloud / repository of normalized regulators to collect pre-validated SAAS to create documents ready financial data culled from of credibility and governance. submissions from those they to be filed with regulators regulate filings, if available publicly The Company has been one of the specialized solution providers in this space for years. Presence Positioning Listing IRIS is headquartered in Mumbai, IRIS is not a KPO, BPO or an IT The Company is listed on the SME India. The Company operates its services Company. We offer segment of the Bombay Stock Attractive player for today. international business through Software as a Service (SAAS), Data Exchange (Scrip code: 540735). subsidiaries in Italy, US and as a Services (DAAS) and software Strong proxy for the future. Singapore. The Company has products. customers in 35 countries across four continents. Order Employee Promoters’ book strength stake D 59.18 crore 341 38.78% 31st March 2020 31st March 2020 31st March 2020 4 IRIS Business Services Limited Annual Report 2019-20 5 Edgar Online contracts ICERS built on iFile CFDS built on iFile for RBI adopts iFile Pilot iFile Taxonomy for XBRL, Deloitte awards iXBRL iFile 2nd phase for RBI IRIS to convert historical for BSE BSE / NSE, SEBI replaces for Capital Adequacy implementation for JSE, SA and JSE developed conversion contract for filings of US companies EDIFAR with CFDS Returns South Africa with Deloitte. Full iFile UK into XBRL implementation for JSE. iFile in Macedonia in iDeal implemented in partnership with ERS of iFile in UAE for ESCA Canara Bank and several Ireland Mutual Funds Won XBRL conversion mandate for US SEC filings 2005 2006 2007 2008 2009 2010 2011 2012 Timeline 2013 2014 2015 2016 2017 2018 2019 iFile live at Saudi iFile goes live in iFile goes live at MCI FATCA reporting Vice President of India IRIS Carbon enters South IRIS is selected as part of a consortium for the RBI CIMS Arabia’s Tadawul Stock Singapore at ACRA. (Saudi Arabia), DBD solution launched for inaugurates SAI Portal Africa to help enterprises project Exchange (Thailand) and Bank BFSI segment built by IRIS meet the CIPC mandate iDeal gets its 100th IRIS awarded a contract to build a reporting and of Mauritius. iFile SaaS Carbon: Enterprise customer Early customers for IRIS selected as GSP, The Central Bank of analytics platform for the Capital Market Authority, Oman model launched for SaaS product CARBON in US, Italy launches GST solution Jordan awards a collection Work begins on DCP, CBRD, Mauritius IRIS Carbon enters the European market for the ESMA development begins markets platform project to IRIS Data Analytics Platform iFile enters Malaysia, mandate, wins first customer iDeal wins first iFile implementation Jordan, another win in iFile selected to as iFile goes live in Qatar international client, begins in Kuwait CMA South Africa a Company reporting AfrAsia Bank platform for Ministry of iFile 3rd phase for RBI iDeal e-audit solution Commerce and Industry, awarded to IRIS launched in Turkey Qatar 6 IRIS Business Services Limited Annual Report 2019-20 7 How we have made governance our foundation at IRIS At IRIS, it would be easy to state that we are in the business of software products; we are principally in the business of trust. We believe that trust is the underlying element why regulators seek to share some of their privileged IRIS. We thank all our reputed information with us, why employees trust their careers to us, why investors provide us risk capital, why partners from across the world… financial partners provide debt and why communities support us. They help us to win and execute key engagements Board of Directors Communication Audit and At IRIS, we believe that our strategic We believe in transparent compliance-driven direction is largely influenced by communication with our At IRIS, we have adopted an audit- our Board of Directors. We have stakeholders. We regularly driven and compliance-driven Accounting firms placed a premium on our Board communicate with key investors approach, enhancing the credibility composition, which comprises and major updates are posted on of our reported numbers. Deloitte KPMG PWC E&Y Grant Thornton professionals with domain the SEBI website and on the stock knowledge. These individuals exchanges for enhanced level of have enriched our values, transparency. IT firms experience, multi-sectoral business understanding and strategic insight. Crimson Logic Singapore EOH, South Africa FAPCO, Kuwait FIT, Turkey Formis, Malaysia HCL Infosystems HP IBM Infosys LTI MNS, Mauritius NVision, Russia Tata Consultancy Tech Mahindra Eco-system Business needs Process-driven Services Wipro At IRIS, we address the needs of Our products and services are used At IRIS, we believe that growth all our stakeholders – employees, by regulators and listed entities can be best derived through vendors, customers, community, across the world. We ensure timely investments in processes and shareholders and the government updation of the offerings and systems, especially information Pride-enhancing clientele – in a sustainable way. We provide highest level quality to ensure technology, secured through value that makes it possible error-free output for our customers.