Softech Infinium Solutions Ltd Management Discussions

PURSUANT TO CLAUSE 49 OF LISTING AGREEMENT:

• Industry structure and developments: Software industry is facing recession & slow down worldwide.

• Opportunities and Threats: The overall threat of recession everywhere in one way, created opportunity to the company as our overhead cost compared to larger corporation is lower and Global buyers are now, looking for new avenues to cut down the cost. This through open the now opportunities to the company.

• Segment-wise or product-wise performance: Software, as an exclusive business has down trend as a result of recession this year.

• Outlook; Prospects for forthcoming years is encouraging with expectations on corrective measures and industry friendly announcements by the Govt.

• Risks and concerns: Falling value of Indian currency compared to US $ and enlarging gap between availability and requirement of manpower as a result of large scale migration.

• Internal control systems and their adequacy: Adequate commensurate with the size and level of operations.

• Discussion on financial performance with respect to operational performance: The trend of current year is expected to continue the following year and however, there are expectations of growth in forthcoming years.

• Material developments in Human Resources / Industrial Relations front, including number of people employed: In spite of recession and business slow down, the cost of manpower remains high on expectation of recovery.