Zenith Infotech Ltd Management Discussions

ZENITH INFOTECH LIMITED ANNUAL REPORT 2009-2010 MANAGEMENT DISCUSSION AND ANALYSIS The Companys business comprises of domestic and overseas operations: During the year the overseas operations of the company registered strong growth. Revenues from our overseas operations increased to Rs. 27731 Lacs from Rs. 18372 Lacs during the previous year . This growth was driven by the sales of the companys SAAZ remote management software, Virtual NOC remote management service and the backup and disaster recovery (BDR) product line. Being a software product company, the company sells its products through a vast network of resellers in North America and UK. The companys reseller network grew from approximately 3,000 resellers at the end of 2008-2009 to more than 5,000 resellers at the end of 2009-2010. The number of enterprises using the companys SAAZ product and Virtual NOC service increased from approximately 22,000 at the end of 2008-2009 to over 25,000 customers at the end of 2009-2010. With respect to the companys BDR product, the number of installations increased from approximately 9,000 at the end of 2008-2009 to over 12,000 at the end of 2009-2010. Towards the end of the financial year, the company launched a new product in the backup and disaster recovery segment called ARCA (Advanced Recovery and Continuity Appliance). ARCA is a business continuity product designed for mid-market and enterprise customers as compared to the companys BDR product which is meant for SMB (small and medium business) customers. In the current year the company is launching its SmartStyle Computing line of products targeted towards the upcoming Cloud Computing segment. As of now the product is in trial with over 50 customers and the company anticipates launching this product towards the end of 2010. The Company has good internal control systems, the adequacy of which has been reported by its auditors in their report as required under the Companies (Auditors Report) Order, 2003. The discussion on financial performance of the Company is covered in the Directors Report. The number of people employed as on March 31, 2010 was 764.