infoquest software exports ltd Management discussions

INFO QUEST SOFTWARE EXPORTS LIMITED ANNUAL REPORT 2007-2008 MANAGEMENT DISCUSSION AND ANALYSIS Industry structure and developments:- Software Industry is a regularly flourishing and growing segment of Indian industry both in terms of production and in terms of export. ,However, the Company could not able to generate any revenue because of its product failure. Also, the ongoing downfall of Indian rupee has seen many such companies facing operational deficit. The company decided to venture into hospitality business including giving vehicles on lease. Outlook: The outlook of hospitality and Software industries continues to remain positive basically for the fact that the gap between demand and supply of expert and efficient manpower and cost effective product continue to exist. The company belongs to Information Technology industry, which offers software packages but resources crunch have blocked everything for the company, Your Directors are trying their best -to cope up with the situation and put the company back on its rails to pursue objectives of the company profitably. The new business segment of vehicles on hire and lease started paying. The Board hope that the company will make a break through in this regard. Opportunities and Threats, Risks and Concern: Opportunities will continue to exist with the increase in competition & with the principle of economy of scale. The good opportunities are there both in domestic and international markets. The company is exposed to risks from change in policy of similar companies which are major buyers of the companys product, further increase in input costs, higher levies; changes in government Policies/ laws of land, etc. may affect the profitability of the Company. Segment - wise or product - wise performance. Presently the company belongs the product segment called software development and Hospitalities Business. -The Board will continue the business activities of Hospitalities and prefer to- confine in the said segment only. Internal control system and its adequacy. The company has adequate internal control procedures in commensuration with its size and nature of business at all desired levels. Discussion on financial performance with respect to operational performance. Operational efficiency of your company has continuously been affected adversely due to combination of factors technology obsolescence attrition of Knowledge resources and lark of finahcial resources. Restructuring of investment portfolio too got a grinding halt due to resources constraints. However, true and fair valuation to the current investment, your Directors have recorded and accounted for the diminution in the securities held by your company, which has resulted into losses for the four years in running. To withstand and wither Competition, Your Company requires integrated upgrading of overall existing infrastructure, which only would result into enhancing core competence and operational strength . Your Directors are working on the same lines and are hopeful of coming out of this locked.up situation, however, there are apparent giant resources blocks in fiance, business and infrastructure before your Directors.