Innovation Software Exports Ltd Management Discussions.

a. Industry structure and Developments.

The Indian economy is trying to sustain its growth and its visible improvement creates investor confidence. With the specialization in the computer industry, the company needs to develop, nurture and recruit the workforce of the company so as to suit the standards.

b. Opportunities and Threats

Your Company intends to benefit from this steady growth in the outsourcing opportunities and has taken the necessary initiatives in this direction. Recruitment cum training drive has been initiated and required up gradation in the existing infrastructure is also being taken up. Your Company plans a modest beginning subsequently moving up the value chain thereby increasing the margins.

c. Segment- wise or product-wise performance

Your Company operates only in one segment; hence there are no separate segments to be reported.

d. Outlook

Apart from expanding the facilities to meet the requirements of the existing as well as new customers, your company has also identified various areas which will drive the companys growth plans. Some of the key growth drivers are domain expertise, enhancement of service portfolio to clients, tap new geographies, strengthening marketing teams and inorganic initiatives.

e. Risks and concerns

The main risks causing concern to the IT industry and your company as well are Economic slowdown, ability to attract and retain talent, withdrawal of Tax Benefits, currency Exchange risks, etc.

f. Internal control systems and their adequacy

The Company is trying to develop the internal Control systems suitable to the business which it envisages to start.

g. Discussion on financial performance with respect to operational performance

Company is trying to improve operational performance with respect to increase financial performance to meet the demand & quality.

h. Material developments in Human Resources/Industrial Relations front, including number of people employed.

The Company has identified certain new projects for which it may require adequate human sources. It may find the suitable system for HR and Industrial relations for the proposed business.