southern infosys ltd share price Management discussions

REPORT.

A. INDUSTRY STRUCTURE AND DEV ELOPMENT

The software industry is growing rapidly and your company shall endeavor to use every possible opportunity in its favor. The company is exploring the opportunity in the e-commerce industry as well which is also showing quantum jumps. The Company expects to launch its unique informative cum e- commcrcc site shortly.

B. SEGMENT WISE / PRODUCT WISE PERFORMANCE

The company has only one segment i.e. IT and IT related Services including Hardware supplies.

C. ADEQUACY OF INTERNAL CONTROLS

The Company has a proper and adequate system of internal controls to ensure that all assets are safeguarded and protected against loss from unauthorized use or disposition and that all transactions are authorized, recorded, and reported correctly.

D. HUMAN RESOURCES / INDUSTRIAL RELATIONS

Your Company acknowledges the commitment, competence and dedication of its employees at all level. The company is committed to nurture, enhance and retain best talent through investment in its people to upgrade their technical, domain and leadership capability. To retain leadership position, the company continuously innovates and customizes its Human Resource (HR) strategy to meet changing employee need.

E. OPERATING PERFORMANCE. FUTURE OUTLOOK ETC.

During the year the company has mainly rendered IT related services besides supplies of Hardware and despite the fall in the turnover of the company, your company has made higher profit before Depreciation and Tax of Rs 18.76 Lakhs as compared to Rs 16.77 Lakhs in the preceding financial year. The Board is putting efforts to enhance its operations through expanding viability in other domain.

F. RISK AND CONCERN

The management periodically carries out risk assessment exercises. Risk factors are also discussed in Audit Committee Meetings. However, an economic slowdown can adversely affect the demand- supply equation in the industry. The rapid innovation in technology is always a threat for the industry. The Board is aware of this threat and takes steps continually to advance with the time.