Dear Shareholders,
 
 It is indeed a pleasure to stand before you to present a concise
 summary on the performance of your Company for the Financial Year
 2011-2012.
 
 For the year ended 31.03.2012, Accentia recorded revenues ofRs 26,081
 laklis over Bs 33,124 lakhs recorded last year, a decline of 21.26%.
 Net profit decreased from Bs 7,534 lakhs last year to Rs 2,306 lakhs
 this fiscal. EPS is Rs 15.76 against Bs 51.50 last year. I would like
 to briefly dwell upon the activities of your Company during the last
 financial year.
 
 Although we have achieved a lower than previous year''s financial
 numbers, our Company has put a firm step on the technology- cum-service
 platform offering by releasing one of the most comprehensive and stable
 Software as a Service (SaaS) platform for the US healthcare market. The
 highly scalable SaaS platform will pave way for a sustainable and
 steady growth for our business in the coming quarters.
 
 After the transformation period, our Company is presently going through
 a consolidation phase with our SaaS offering in the US market. As you
 would recollect, the healthcare domain in the United States of
 America''s has been going through a transformation in the last couple of
 years due to some major policy changes. There has been many significant
 changes in the technology and processes being used in the healthcare
 industry due to the introduction of the new healthcare policy by the
 Obama administration. The US Senate passed a historic Healthcare Bill
 in 201 Othat is set to eliminate gross inefficiencies in the system
 which was leading to wastage of billions of dollars. The new bill is
 totally changing the way documentation and healthcare receivables cycle
 management has been conducted over the past 3 to 4 decades. A major
 mandatory requirement as per the new Obama Healthcare Bill is the usage
 of an Electronic Medical Becords (EMB) suite to capture and record
 patients'' demographical, clinical and all other related data into a
 database, which can be accessed anytime for future reference and
 analysis. Obama administration has set apart more than US$ 80 billion
 to offer as monetary incentives of up to US$ 44,000 per physician,
 payable to all physicians who adopt EMB software which is certified by
 the ONC-ATCB (Office of the National Coordinator-Authorised Testing and
 Certification Body).
 
 Accentia''s all inclusive SaaS platform combining Practice Management
 System (instaPMS), Electronic Medical Becords (instaEMBj, Electronic
 Prescription Module (insta eBx), Electronic lab Order (insta elab),
 Electronic Billing Module [instaBiiling, including EDI) and realtime
 integration with electronic clearinghouses, Patient Portal etc, was
 first launched in 2011 and thereafter our Company has put contin uous
 efforts in improving the mobility and security of the platform. At
 present instaSaaS, our SaaS platform is one of the most feature rich,
 fully mobile, 100% HIPAA compliant, highly scalable platforms that can
 handle upto a million providers at a time.
 
 On the 28th of July 2011, our first EMB offering for physicians got
 certified by ON C - ATCB in the US. It has been a very successful
 one-year period since that day, with the Company launching 8 different
 product offerings in 22 conventions attended in the past one year. In
 March 2012, our company launched ChiroPad, the first EMB solution for
 Chiropractic discipline on iPad. Thereafter, we have successfully
 launched iMediPad, the EMB on iPadforlnetrnal Medicine and Cardiology
 specialties. Our core development team is currently focussed on the
 release of another 16 disciplines on our SaaS platform in the coming 6
 months.
 
 Our Company has invested considerable amount of funds in the
 development and continued improvements ofPMS, EMB and SaaS paltform
 thathclped us transform to a technology cum service provider from a
 pureplay global BPO service provider. On any scale, this is a
 creditable achievement in the most competitive market place and I would
 like to take this opportunity to thank each member of our team who has
 been working selflessly over the past 2 years with single focus and
 dedication to make us the best and biggest global SaaS player over next
 few years.
 
 At present our focus is to acquire as many clients as possible on our
 SaaS platform before May 2014, the deadline for healthcare providers to
 migrate to EMB regime and claim the ABBA incentive from US Government.
 In order to conserve funds to meet the fund requirements for further
 development on 16 disciplines and aggressive marketing of SaaS, the
 Directors felt it is desirable not to recommend dividend on equity
 shares for the financial year.
 
 During the financial year, MrG. K. Misra resigned from the Board of
 Accentia Technologies due to his pre-occupation. I extend my sincere
 thanks to Mr Misra for his valuable contributions duringhis tenure.
 
 Let me take this opportunity to thank all the shareholders for their
 continued faith in the Company and the understanding they have shown
 during the last couple of years during the transformation and
 consolidation phases. I look forward to your continued patronage and
 support to take our Company to be the n umber one globally in our
 domain over the next few years.
 
 Pradeep Viswambharan
 
 Managing Director & Chief Executive Officer