(i) Religare Technova IT Services Limited (now merged with Religare Technologies Limited) has received an order, passed by Service Tax department, Ludhiana dated December 4, 2009 under Section 73 of the Finance Act, 1994 wherein a demand of Rs. 5,40,824/- has been raised on the Company.

The Company had filed an appeal before the Commissioner of Central Excise (Appeals) - II, Chandigarh against the said order. The commissioner had confirmed the order against which appeal was filed to CESTAT where the order was given in favour for the company and sent back on remand. The proceedings are pending before the assessing officer for regular assessment.

(ii) Appeal has been filed to the Commissioner (Appeal) of Value Added Tax, Kolkata in respect of VAT Demand for Financial Year 2008- 09 amounting to Rs. 10,74,026/-. The proceedings are still pending before Commissioner (Appeal) of Value Added Tax, Kolkata.

(iii) The Income Tax Assessment of Religare Technova IT Services Limited (now merged with Religare Technologies Limited) for the assessment year 2008-09 has been completed by the Deputy Commissioner of Income Tax, Circle-VII, Ludhiana under section 143(3) of the Act vide order dated December 24, 2010. Consequential to certain disallowances made in the assessment order, a demand of Rs. 35,451,530/- has been raised on the Company. The AO has also initiated penalty proceedings under section 271(1) (c) of Act against the Company.

The Company has filed an appeal with Commissioner of Income Tax (Appeals), II, Ludhiana against the said assessmen order. In reply to the notice for initiation of penalty proceedings, the Company has filed a letter with the AO requesting to keep the penalty proceedings in abeyance till the disposal of Appeal filed before CIT(A). (iv) Religare Technova IT Services Limited (now merged with Religare Technologies Limited) ("the Company") has received order dated March 30, 2011 passed by Assessing officer u/s 201(1)/201(1A) of the Act for financial year 2008-09, wherein demand amounting to Rs. 20,05,580/- has been raised on the Company on account of TDS not deducted/TDS deducted but not paid by the Company. The said demand was primarily on account of mismatch in the online database of tax department with the returns/ challans filed by the Company.

The company has filed correction statement and status of liability as on 31 march 2012 is Rs. 136,741/-. The Company has also preferred an appeal against the same to CIT(A)-XXX and the same is pending for disposal.

(v) The Income tax assessment of Religare Technova Business Intellect Limited (now merged with Religare Technologies Limited) for assessment year 2008-09 was completed by the Assistant Commissioner of Income Tax, Circle-15 (1), New Delhi under section 143(3) of the Act vide assessment order dated December 31, 2010. Pursuant to the additions made in the said assessment order, the returned loss of the subject assessment year has been reduced from Rs. 79,47,388/- to Rs. 12,38,895/-. The AO has also initiated penalty proceedings under section 271(1) (c) of the Act against the Company.

The Company has filed an appeal with Commissioner of Income Tax (Appeals), XVIII, New Delhi against the said assessment order. In reply to the notice for initiation of penalty proceedings, the Company has filed a letter with the AO requesting to keep the penalty proceedings in abeyance till the disposal of Appeal filed before CIT(A).

(vi) The company has received a show cause notice dated 03 Feb 2012 from Service tax department on account of disallowance of CENVAT credit in relation to company's premises for which late registration was taken. The amount involve in such show cause notice is Rs. 37,56,456/- including interest.

The company has filled a suitable reply against such notice as the late intimation filed for few company's premises is a procedural gap only and management expects a favourable order on reply against such notice.

(vii) HealthFore Technologies Limited (formerly Religare Technologies Limited) received a notice dated 16th May, 2011 from Presiding Officer, Industrial Tribunal, New Court Complex, Ludhiana regarding a complaint filed by Mr. Rajesh Bansal disputing his termination and claiming an amount of Rs. 3,85,000/-. Further a notice dated 30th September, 2011 was received from the Controlling Authority under Payment of Gratuity Act, 1972 and Assistant Labour Commissioner (Central), KendriyaSadan, Sector 9-A, Chandigarh with respect to an application filed by Mr. Rajesh Bansal regarding non-payment of alleged full gratuity payable to him. The matters are currently pending.

1. SEGMENT REPORTING: Business Segment:

(i) The business segment has been considered as the primary segment.

(ii) The company's primary business segments are reflected based on principal business activities, the nature of service, the differing risks and returns.

(iii) The Company's primary business comprises of three segment viz., 'IT Services' , 'Knowledge Services' and 'Healthcare Services'.

(iv) Segment revenue, results, assets and liabilities include amounts identifiable to each segments allocated on reasonable basis.

(v) The accounting policies adopted for segment reporting are in line with the accounting policies adopted for preparation of financial information as stated in (2) above.

Geographical Segment:

As the company is primarily operating in one Geographic segment "Within India" hence no separate information for Geographic segment wise disclosure is required.

2. OTHER NOTES

(i) In view of accumulated losses, no provision for income tax is considered necessary.

(ii) The Company has unabsorbed depreciation and carry forward losses under the Income Tax Act 1961. Accordingly, keeping in view absence of virtual certainty, deferred tax assets have not been recognised.

(iii) Taking into account management's assessment of growth of business, the accounts of the company have been prepared on a "Going Concern" basis even though, the net worth of the Company has substantially eroded due to accumulated losses.

(iv) During the financial year, the balances which were lying with the creditors and old outstanding cheque having outstanding more than 3 years have been written back.

(v) The cost of Intangible assets and Intangible assets under development includes the cost of Manpower, Interest on borrowing, proportationate amount of common facilities and other miscellaneous cost. During the financial year, Rs. 11,96,70,307/- has been added to Intangible assets under development.

(vi) The Shareholders of the Company had approved the HealthFore Employee Stock Option Scheme - 2013 ("Scheme") on September 13, 2013. However, till date no Stock Options have been granted by the Company under the Scheme

3. PREVIOUS YEAR FIGURES

Figures of the Previous Year have been regrouped, rearranged and reclassified to conform to the current year classification