It is a great privilege for the Directors to present the Twenty Third Annual Report of the Company along with Audited Annual accounts for the financial year 2013-14.

A. Performance of the Company

The healthcare segment in the US is compelled to shift from conventional Medical Transcription to Electronic Medical Records (EMR). Though the reforms open up tremendous opportunities for growth, the above mentioned transition has temporarily affected the productivity. However,the Company is carrying out the operational activities of the Company in a better manner.

B. Financials of the Company

The financial highlights of the Company are given below:

Financial Results (Stand Alone)                           Rs. in lakhs

Particulars                               For the year    For the year
                                                 ended           ended
                                            31.03.2014      31.03.2013

Total Income                                     3,915          18,236

Less: Total Expenditure                          5,538          16,404

Profit Before Tax                               -1,622           1,832

Less: Provision of tax                             -59             609

Profit after Tax                                -1,562           1,223

Financial Results (Consolidated)                          Rs. in lakhs

Particulars                               For the year    For the year
                                                 ended           ended
                                            31.03.2014      31.03.2013

Total Income                                    11,262          31,136

Less: Total Expenditure                         13,649          27,473

Profit before Tax                               -2,386           3,664

Less: Provision of tax                            -125             739

Profit after Tax                                -2,507           2,925

C. Dividend

In view of the need to conserve funds for plough back, the Directors feel it is desirable not to recommend any dividend on equity shares for the financial year.

D. Share Capital

As on date of this report the Authorized capital of the Company is Rs. 25,00,00,000/-(Rupees Twenty Five Crore only) divided into 2,50,00,000 equity shares of Rs. 10/- each. The total issued, subscribed and paid up capital of the Company as on the date of the report is Rs. 170,245,700/- (Rupees Seventeen Crores Two Lacs Forty Five Thousand Seven Hundred Only) divided into 17024570 equity shares of Rs. 10/- each.

E. Constitution of the Board

The Board of Directors is duly constituted and the present structure is as follows:

Name of Directors             Designation                Date of
                                                         Appointment

1. Sooraj C. K.               Managing Director          22.03.2006

3. Dr K. Balasubramani Independent Director 20.10.2014

4. Bobichen Jacob Thomas Independent Director 20.10.2014

5. Sudeepa Nagasampagi Independent Director 20.10.2014

During this year, Directors Mr. Kezer Abbas Kharawala and Mr Sreedhar Mukund Parande had resigned from the Board with effect from 31st March, 2014.

F. Fixed Deposits

Your company has not accepted any public deposits within the meaning of provisions of section 58A of the Companies act, 1956 read with the Companies (Acceptance of Deposit) Rules, 1975 and as such no amount of principal or interest are outstanding as on the balance sheet date.

G. Management Discussion and Analysis

The Management Discussion and Analysis including the result of operations of the Company for the year under review, as required under Clause 49 of the listing agreement with the stock exchange is appended to this report.

H. Corporate Governance

Your directors affirm their commitments to the corporate governance standards prescribed by the Securities and Exchange Board of India (SEBI). A report on the Corporate Governance with Management Discussions and Analysis as required under Clause 49 of the listing Agreement forms part of this report.

The requisite certificate from the Auditors of the Company confirming compliance with conditions under aforesaid Clause 49 is attached to this report.

I. Auditors

M/s. DMKH & Co, Chartered Accountants, Mumbai, the Statutory Auditors of the Company retires at the conclusion of the ensuing Annual General Meeting and is eligible for re- appointment. The Company has received confirmation from the Auditors that their re- appointment will be within the limits prescribed under section 224(1B) of the Companies Act, 1956. The necessary resolution is being placed before the shareholders for approval.

J. Auditor's Report

The report of the Auditors of the Company and notes to the accounts are self explanatory and therefore do not call for any further comments and may be treated as adequate compliance of Section 217(3) of the Companies Act, 1956.

K. Directors' Responsibility Statement:

Pursuant to Section 217(2AA) of the Companies Act, 1956, it is hereby confirmed:

1. that in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;

2. that the directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of the financial year and of the profit or loss of the company for that period;

3. that the directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities;

4. that the directors had prepared the annual accounts on a going concern basis.

L. Particulars Of Employees

During the period under review, no employee of the Company has received remuneration at a rate, which, in the aggregate was more than Rs. 5,00,000/- or more per month or Rs. 60,00,000/- or more per annum and hence there was no requirement of a statement under sub section (2A) of the Section 217 of the Companies Act, 1956 read with Companies (Particulars of Employees) Rules, 1975.

M. Conservation Of Energy

Your Company's operations do not involve large scale use of energy. The disclosure of particulars under this head is not applicable as your Company operates in the Service sector. Although your Company is not a large scale energy user, it acknowledges the concept of conservation of energy.

N. Foreign Exchange Earnings & Outgo

The foreign exchange earnings of the Company for the year is Rs. 3,905 lakhs as against Rs. 12,624 lakhs of the previous year and the foreign exchange outgo of the Company for the year is Rs. 615 Lakhs as against Rs. 3,301 of the previous year.

O. Corporate Social Responsibility

Your Company is known not only for its commitment towards its clients but also for its commitment to the society. Social commitment is becoming a part of Accentia culture.

Through the charitable foundation, Accentia Candle Light Charitable Trust, Accentia and its stakeholders contribute a part of their earnings, acquired knowledge, and efforts for the good of the underprivileged. Firmly anchored in our corporate values, it is reflected in our daily activities.

Accentia's current initiatives focus on facilitating underprivileged children's education, healthcare, and support for palliative care for children under the age of 18. Accentia also helps various terminally ill patients with healthcare and medical facilities and extends its support to various organizations who reach out these underprivileged people.

P. Subsidiary Companies

Accentia is having 8 number of subsidiaries, namely;

1. Thunga Software Private Limited

2. Accentia Oak Technologies Pvt Ltd

3. Accentia Education Services Pvt Ltd

4. GSR Physicians Billing Services Inc.

5. GSR System Inc.

6. Denmed Inc.

7. Oak Technologies Inc.

8. Accentia Technologies FZE

In terms of the general exemption given by the Ministry of Corporate Affairs, Government of India (MCA) through General Circular No. 2/2011 and Press Note 3/2011, the Board of Directors has accorded their consent to the Company not to attach the specified particulars of its Subsidiary Companies with the balance sheet of the Holding Company.

Q. Acknowledgement

Your Directors place on record their gratitude to the Central and State Governments, and the Company's Bankers for their assistance, co-operation and encouragement they have extended to the Company.

Your Directors would like to place on record their deep sense of appreciation and thanks to Shareholders, investors, customer, vendors and employees for their valuable trust in the company's performance and for their support and encouragement, enabling the company to venture in to various upcoming projects and spread its wings globally.

                                         By and on behalf of the Board
                                         Accentia Technologies Limited

Sooraj C. K.                                      Pradeep Viswambharan
Managing Director                                   Wholetime Director