Dear Shareholders,
 
 I am happy to present before you a brief note on the accomplishments of
 your Company on yet another successful year.
 
 For the year ended 31.03.2011, Accentia recorded revenues of Rs 33,124
 lakhs over Rs 26,572 lakhs recorded last year, a growth of 24.66%. Net
 profit increased from Rs 72.53 lakhs last year to Rs 75.35 lakhs this
 fiscal. EPS is Rs 51.50 against Rs 53.79 last year.
 
 I would like to briefly dwell upon the activities of your Company
 during the last financial year.
 
 Our company is presently going through a transformation phase for good.
 In the largest market place that Accentia serves, the United States of
 America, there has been a significant shift 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 2010
 that 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 Records (EMR) 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 EMR software which is certified by
 the ONC-ATCB (Office of the National Coordinator – Authorised Testing
 and Certification Body).
 
 Even though the management realised that these drastic changes in
 Accentia''s core area of operation would affect the normal operations
 and would have an impact on the revenues and profitability of the
 Company in the short run, we were quick to understand that there is a
 huge opportunity that was waiting to be exploited, if we can change our
 functioning to adapt to the new requirements in the healthcare industry
 in the US. Accordingly we decided to go all out on a war footing basis
 to develop our own EMR software rather than depend on third party
 offerings; get the software certified at the earliest and market the
 same all over the US. Further, we realised that the adoption of EMR
 based clinical practice is opening up avenues for an integrated
 end-to-end SaaS model (Software as a Service) of service delivery;
 hence, we quickly ventured into that too. Accentia''s seamlessly
 integrated SaaS delivery model will function as a one-stop shop for a
 clinical provider that will manage all their healthcare documentation
 needs, receivables management needs, performance tracking and
 reporting.
 
 On the 28th of July 2011, our first EMR offering for physicians got
 certified by ONC – ATCB in the US. We have also recently introduced our
 SaaS offering to clients which was well received by the industry, and
 our software teams in different locations are working on adding
 additional disciplines in the EMR software which will soon be
 introduced in the US market. In the back end delivery centres, the
 employees are going through retraining in the use of EMR software and
 SaaS offerings. We are also working on increasing the productivity per
 employee, leading to significant increase in the profitability of the
 Company.
 
 Due to these developments in the last financial year, Accentia has
 invested large amount of funds in the development of EMR software and
 SaaS model, marketing of the same in the US and retraining of the
 workforce across all its delivery centres. Due to the need to conserve
 funds to meet the requirements of the new business model, the Directors
 felt it is desirable not to recommend dividend on equity shares for the
 financial year.
 
 During the financial year, none of the Directors have resigned from the
 Board of the Company. I am happy to inform you that Mr Kezer Kharawala,
 an eminent lawyer, has join the Director Board as an Additional
 Independent Director. I am sure with his vast experience he will be
 able to add significant value to the Board and the Company.
 
 I should mention here that the employees of the Company in the
 different units in India and abroad have been very supportive and
 understanding during this transition phase. Without their dedication
 and hard work, the Company could not have adapted to the new
 requirements in this short time, and I take this opportunity to thank
 all the employees of the Company.
 
 I also take this opportunity to thank all the shareholders for their
 continued faith in the Company and the understanding they have shown
 during the past year of transformation. I am sure that with your
 support and faith in the management, we can scale new heights together.
 
 Pradeep Viswambharan
 
 Managing Director & Chief Executive Officer