Financial Daily from THE HINDU group of publications
Tuesday, Jul 06, 2004

Cross Currency

Group Sites

Info-Tech - Software
Corporate - Corporate Disputes

Polaris files counter claim against Indonesian bank — Arbitration proceedings to begin soon

Our Bureau

Chennai , July 5

ARBITRATION proceedings on the commercial dispute between Polaris Software Lab Ltd and Bank Artha Graha, Indonesia, is likely to proceed in the second half of 2004.

Pending the outcome of the case, the management is not able to estimate the financial effect of the contingency, says Polaris' 2003-04 annual report.

Following a commercial dispute, Bank Artha Graha failed to pay the monies due to Polaris under a contract and terminated the contract prematurely in November 2002. This dispute is now under arbitration at Singapore's International Arbitration Centre. Polaris filed the counter claim against the Bank Artha Graha, and is relying on the testimony of experts in the arbitration proceedings.

Polaris' management believes that the company can successfully resist the claim, the report says.

It may be recalled that in December 2002, the Indonesian Police jailed Mr Arun Jain, Chairman and CEO of Polaris, and a company official, based on a complaint filed by Bank Artha Graha. They were released after the Government of India intervened.

In a case related to the US-based firm Data Inc, Polaris said that it was contesting the case.

It believes that the allegations of Data Inc are without merit and have been proved by various orders of the court so far.

On a suit filed by ex-employees - Mr Harpal Dugal and Mr Suren Khirwadkar - against Polaris for wrongful termination of their services and publication of defamatory material,

Polaris said that since the case was in the preliminary stages, it is not possible for it to predict the case's outcome.

Invests Rs 18 cr in subsidiaries

POLARIS Software Lab Ltd had invested about Rs 18 crore in its subsidiaries and associate companies in fiscal ended March 31, 2004.

This includes an investment of Rs 9.95 crore in Optimus Outsourcing Company Ltd - a business process outsourcing firm - and Rs 4 crore in Polaris Retail InfoTech Ltd. In Empower Works Ltd, an associate company, Polaris invested Rs 2.90 crore during 2003-04, says the annual report of the company.

During 2003-04, Polaris made an additional investment of Rs 48.02 crore on fixed assets. This includes investments of Rs 24.68 crore towards development of "Intellect" suite of products for the banking sector, the report says.

As on March 31, 2004, Polaris' equity ownership in Empower Works Ltd was 49 per cent.

Empower, which provides human relations suite of software solutions and products, had accumulated losses of Rs 1.31 crore (as on March 31, 2004).

This was due to initial/start-up stage of operations and the company is expected to generate profits in the near future.

NMS Works, in which Polaris holds 45 per cent, reported an accumulated loss of Rs 93 lakh (as on March 31, 2004).

More Stories on : Software | Corporate Disputes

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Tata Tele surrenders excess spectrum

BSNL to recruit recovery agents
Nokia customises handset for Airtel
VSNL reaches pact with FLAG on access charges
MosChip raises Rs 11.7 cr
Polaris files counter claim against Indonesian bank — Arbitration proceedings to begin soon
Jataayu, MontaVista tie up
IIIT-H graduates bag job offers
NIIT Tech to raise headcount by 800
ACI to relocate notebook unit from UK to Gujarat
Intoto tool for SMEs
Logged out
IT.Com 2004 to focus on investments, jobs
Midas Comm gets $10-m funding from Argonaut
Showcasing Indian ITES skills to Silicon Valley investors

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2004, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line