Southern Infosys Ltd Management Discussions

REPORT FORMS PART OF THE ANNUAL REPORT.

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-commerce site shortly.

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

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.

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.

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 13.33 Lakhs as compared to Rs 18.77 Lakhs in the preceding financial year. The Board is putting efforts to enhance its operations through expanding viability in another domain.

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.