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Accentia Technologies Ltd.

BSE: 531897 Sector: IT
NSE: N.A. ISIN Code: INE122B01012
BSE 05:30 | 01 Jan Accentia Technologies Ltd
NSE 05:30 | 01 Jan Accentia Technologies Ltd

Accentia Technologies Ltd. (ACCENTIATECH) - Chairman Speech

Company chairman speech


Dear Shareholders

I am happy to present before you a brief note on the affairs of your Company for thefinancial year 2013-2014.

For the year ended 31.03.2014 Accentia recorded revenues of Rs 11262 lakhs over Rs31137 lakhs recorded last year. Loss for the year is Rs 2507 lakhs over the last yearprofit of Rs 2925 lakhs. EPS is Rs (15) against Rs 18 of last year.

The fortunes of Accentia underwent a drastic transformation after the announcement ofthe new healthcare policy by US President Obama in 2009. The new bill is totally changingthe way documentation and healthcare receivables cycle management has been conducted overthe past four decades. A major mandatory requirement as per the Obama Healthcare Bill isthe usage of an Electronic Medical Records (EMR) suite to capture and recordpatients’ demographical clinical and all other related data into a database. HenceAccentia management decided to act proactively and develop its own EMR software and marketthe same all over the US.

The EMR software development work was undertaken by different teams and our softwarecalled Instakare was certified by the US government appointed agency ONC-ATCB in July2011. After this we also launched Software As A Service (SaaS) platform for the EMRsoftware wherein Accentia will offer the entire suite of healthcare receivablesmanagement services for a physician or a clinic on a single seamless platform.

Based on these changes happening in the marketplace the Board of Directors had taken astrategic decision to focus on Enterprise Products market in the healthcare arena therebyshifting from the earlier Business to Customer (B to C) model to Business to Business (Bto B) model and also to enter niche areas in the field of education. Since this was atotal deviation from the business model followed in the last 16 years in the healthcarebusiness a strategy was formed by which we will focus on White Labelled Software Productsfor Practice Management System(PMS) Electronic Medical Records(EMR) Receivables CycleManagement(RCM) Code Scrubbing Discrete Reportable Transcription(DRT) etc.; and PlatformAs A Service(PaaS) in which our platform will be leased out to Companies for managingtheir clients with nil or minimal start up cost. The target clients will be softwareintegrators vendors of various hardware products document management and receivablesmanagement companies. Further in the education field we have also developed a safety cumtracking device called Safecomm which is a GSM phone with GPS facility which can begiven to children elders and also women when they are on the move. This device has beentested and approved by the central government agency Centre for Development of AdvancedComputing(C-DAC) and with this certification we are expecting a host of purchase ordersfrom the central and various state governments as well.

During the past couple of years the revenues have dropped due to the steady migrationof medical transcription work to EMR software and we have drastically reduced the manpower strength due to the reduction in the medical transcription work. At the same timethe profitability of the Company was affected due to the development of the EMR softwareand SaaS platform and the full fledged marketing efforts that we have undertaken in theUS. But this is purely temporary in nature and the coming year onwards the company shouldsee a steady growth both in revenues and profitability. But the need of the hour isinfusion of working capital to fuel the marketing efforts and also to support the handholding of new physicians in the SaaS platform.

Due to the need to conserve funds to meet the requirements of the new business modelthe Directors felt it is desirable not to recommend dividend on equity shares for thefinancial year.

During the financial year Mr. Kezer Abbas Kharawala and Mr Sreedhar Mukund Parande hadresigned from the Board of Directors with effect from 31st March 2014. I would like toplace on record my sincere gratitude and appreciation for their contributions to theCompany during their tenure. I am happy to inform you that Dr Kumarasami Balasubramani aneducation sector expert with vast experience and proven track record in implementingmanaged services in education sector Mr Bobichen Jacob Thomas a corporate relationsspecialist in the healthcare domain and Ms Sudeepa Nagasampagi renowned expert with vastecperience in vocational skill training have joined the Board of Directors as IndependentDirectors. I am sure these eminent personalities with their vast experiences will be ableto add significant value to the Board and the Company. The undersigned has taken over asManaging Director from Mr. Pradeep Viswambharan who will continue as a WholetimeDirector.

I would like to appeal to all our shareholders to please support the management duringthis phase of turbulence in the market place and I am sure your faith in the company willbe rewarded in the next couple of years. I take this opportunity to thank all theshareholders for their continued faith in the Company and the understanding they haveshown during the past two years of transformation. I am sure that with your support andfaith in the management we can scale new heights together.

Sooraj C.K.

Managing Director