Hypersoft Technologies Ltd Management Discussions

HYPERSOFT TECHNOLOGIES LIMITED ANNUAL REPORT 2008-2009 MANAGEMENT DISCUSSION AND ANALYSIS Industry Structure and developments: In respect to global slowdown our major customer base has been affected. However the Company has been working on new product lines and has launched two new products in this year namely, software for Insurance Brokers product and Know your Customer on-line digital record management product. These products have shown good acceptance in the market and sales activity are picking up. Opportunities and threats: The Company is a major player in back office accounting solution for stock broking and commodities broking operations in India. The markets are growing and our market share is steadily increasing and the flagship product have gained widespread acceptance in the market. Any downturn in the markets would cause some slowdown in sales volumes, but not significantly. Segment wise or product-wise performance: The Company now operates in one major segment, which is software products, both our own as well as from our Partners. This year we are expanding into the services segment which will reflect in the next year accounts. Outlook: The market for software products is growing and the Company is poised to take advantage of the market developments. In addition to product design and development, the Company also provides services like legacy maintenance, offshore development and implementation services and support services from India. Risks and concerns: There is some pressure on profitability due to large legacy losses of the Company which are being slowly depleted. Internal control systems and their adequacy: The Company has adequate internal controls commensurate with its activity and size of operations. Discussion on financial performance with respect to operational performance: During the year under review, your Company made a Turnover of Rs. 119.27 Lacs as against Rs. 163.13 Lacs and incurred a loss of Rs. 20.62 Lacs as against a loss of Rs.7.66 Lacs for the previous year. Material Development in Human Resources/Industrial relations: There are no significant developments in human resources and number of people employed. However all our efforts were made to retain the talent and improve the productivity.