iq infotech ltd Management discussions

IQ INFOTECH LIMITED ANNUAL REPORT 2010-2011 MANAGEMENT DISCUSSION AND ANALYSIS I. Industry Structure and Development The company is now focusing into three main areas namely Defence Electronics, Industrial Electronics and LED Lightings/Digital Display Systems and other major areas. All these three areas have got tremendous potential in terms of market schemes. Hence the company will focus in these areas in the next 2-3 years. Since the company was involved in Automotive Electronics for a long time the company is also looking out at newer potential areas in this segment. II. Segment wise Performance: The company is concentrating on Indian PSUs who are the blue chip companies of India to-day. III. Industrial Segment: With reference to the Industrial segment the company was in a position to bag good orders through tender process and the company is established as one of the reliable vendors in this sector. LED Lighting is one of the fast growing sectors. Many lighting majors like WIPRO are sourcing LED Lights from your Company. Hence, the Company can expect very large orders. The Company will also continue to concentrate in Defence sector as this segment is being opened for private industries. IV. Threats and concerns : The areas in which the company is working have a number of competitors and the only way the company can bag orders is through their pricing structure and also quality of its products. Hence, the company is focusing on value engineering and also upgrading the technology to appraise these two threats and concerns. V. Out look opportunities: As mentioned above, there is tremendous opportunity in the area of Digital Display Systems as well as Automotive Electronics in which the company has the required expertise. The company hopes to strengthen its R & D activities and also modernize the company in these areas so that the company can bag large volume orders. The modernization will be in terms of upgrading existing facilities and also add more equipment in order to achieve the desired development and manufacturing activities. INTERNAL CONTROL AND ITS ADEQUACY The Management reporting system adopted by the company at different levels for different activities is considered adequate and enables to take corrective action by the management through regular review meetings. The companys systems and processes in all areas are regularly reviewed by the internal auditors. Management regularly reviews the internal audit reports and corrective actions are initiated to further strengthen the control. FINANCIAL AND OPERATIONAL PERFORMANCE Higher productivity, aggressive cost curtailment together with debt restructuring has been key areas to improve the operational performance. The sale prices are adjusted wherever required to match cost with the revenue. HUMAN RESOURCES The industrial relations have been harmonious. By order of the Board of Directors Place: Bangalore Dr. K R Srinivasan Date : 03rd September, 2011 Chairman and Managing Director