nakshatra infrastructure ltd Management discussions

ANCENT SOFTWARE INTERNATIONAL LIMITED ANNUAL REPORT 2008-2009 MANAGEMENT DISCUSSION AND ANALYSIS Industry Structure and Development: According to a recent NASSCOM study, the Indian IT software service sector continued to grow despite a gloomy global economic scenario marked by soft quarters, job cuts, and reduced It companies profits continued to feel the pressure. NASSCOM study also revealed that the Indian Software industry growing quantitatively as well as qualitatively. There are increased multi-year contracts coming to India. Which reflect confidence in our abilities. Indian vendors are also increasingly beginning to participate in large global bids against worldwide IT majors. Interestingly, IT enabled services and BPO emerged as biggest business opportunities as the segment grew at over 60 percent. Besides cost and bottom line considerations drove organizations in the USA to outsource of their some of their processes and functions to India. This cushioned impact of global economic slowdown in India. Opprtunities, Threats and Outlook: In todays increasingly competitive business environment, companies have become dependent on technology not only to conduct day to day operations, but also as a strategic tool to enable them to re-engineer business processes restructure organizations, and react quickly to competitive, regulatory, and technological changes. According to NASSCOM forecasts, the global IT services market is expected to grow from US$395 Billions in 2000 to US$700 Billions by 2010. Some of the high value segments within IT services re-systems integration, processing services, is outsourcing, packaged software support / installation, and hardware support/installation. The companys outlook for the year ending 31st March, 2010 is the company will make a turn around with the increased greater concrete efforts by increasing the revenues and by diversifying into other businesses. Operational Performance: In 2008-2009, Ancent Software recorded a turnover of Rs. 93.53 Lacs as against Rs. 88.25 Lacs in the previous year. The net Profite for the year was Rs. 6.76 Lacs as against a Profit of Rs. 6.39 Lacs in the previous year. Human Resources and Industrial Relations Your company believes that the quality of its employees is the key to its success. In the long run and is committed to provide necessary human resource development and training opportunities to equip them with skills, which enables them to adopt to contemporary technological advancements. Cautionary Statements: Statements in the Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations may be forward looking statements within the meaning of applicable securities laws and regulations. Actual results would differ materially from those expressed or implied. Important factors that could make a difference to the companys operations include economic conditions effecting demand, supply and price conditions in the domestic or overseas markets in which the company operates, changes in the Govt. Regulations Tax Laws, other Statutes and other incidental factors.