Cigniti Technologies Ltd — Audit Report / Information 2021

Apr 29, 2021

29th April 2021

National Stock Exchange of India Ltd, BSE Limited Exchange Plaza, Bandra Kurla Complex, P.J. Towers, Dalal Street Bandra (East), Mumbai – 400051. Mumbai - 400001. Fax No.26598237/26598238 Fax No.22722037/22723121

Name of Scrip: CIGNITITEC Scrip code: 534758

Dear Sir / Madam,

Sub: Outcome of Board Meeting under regulation 30 read with 33(3)(c) of SEBI (Listing Obligations and Disclosure requirements) regulations, 2015

Further to our intimation dated 19th April 2021, this is to inform the Exchange that the Board of Directors of M/s. Cigniti Technologies Limited at their meeting held today have duly considered and approved the following items of business:

• 1. Audited financial results on consolidated and standalone basis for the quarter and year ended 31.03.2021.(enclosed)
• 1. Audit report for the Quarter and year ended 31.03.2021.(enclosed)
• 1. Notice of 23rd Annual General Meeting to be held virtually on Friday, 4th June 2021.
• 1. Directors report for the financial year 2020-21.
• 1. Recommended a final dividend of Rs.2.50/- per equity share of Rs.10/- each subject to approval of the shareholders of the Company.
• 1. The record date for the purposes of the Annual General Meeting and final dividend is May 28, 2021. The dividend will be paid on June 11, 2021.
• 1. Secretarial Audit report for the financial year 2020-21.
• 1. Dividend Distribution Policy of the Company. The policy shall be available on the website of the Company under the following link: https://www.cigniti.com/investors/policies.

The meeting was commenced at 2.00 P.M. (IST) and concluded at 4.30 P.M.(IST).

This is for the information and records of the Exchange, please.

Thanking you.

Yours Faithfully,

For Cigniti Technologies Limited

A.N.Vasudha Company Secretary Encl: as above

THE SKYVIEW 10 18th Floor, "NORTH LOBBY" Survey No. 83/1, Raidurgam Hyderabad – 500 032, India Tel: +91 40 6141 6000

Independent Auditor's Report on the Quarterly and Year to Date Consolidated Financial Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended

To The Board of Directors of Cigniti Technologies Limited

Report on the Audit of the Consolidated Financial Results

Opinion

We have audited the accompanying statement of consolidated financial results of Cigniti Technologies Limited ("Holding Company") and its subsidiaries (the Holding Company and its subsidiaries together referred to as "the Group") for the quarter and year ended March 31, 2021 ("Statement"), attached herewith, being submitted by the Holding Company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended ("Listing Regulations").

In our opinion and to the best of our information and according to the explanations given to us, the Statement:

i. includes the results of the following entities:

Holding Company

Cigniti Technologies Limited Subsidiaries

• a. Cigniti Technologies Inc., USA
• b. Gallop Solutions Private Limited, India
• c. Cigniti Technologies Canada Inc., Canada
• d. Cigniti Technologies (UK) Limited, UK
• e. Cigniti Technologies (Australia) Pty Ltd., Australia
• ii. are presented in accordance with the requirements of the Listing Regulations in this regard; and
• iii. gives a true and fair view in conformity with the applicable accounting standards, and other accounting principles generally accepted in India, of the consolidated net profit and other comprehensive income and other financial information of the Group for the quarter ended March 31, 2021 and consolidated net profit and other comprehensive loss and other financial information of the Group for the year ended March 31, 2021.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs), as specified under Section 143(10) of the Companies Act, 2013, as amended ("the Act"). Our responsibilities under those Standards are further described in the "Auditor's Responsibilities for the Audit of the Consolidated Financial Results" section of our report. We are independent of the Group in accordance with the 'Code of Ethics' issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our opinion.

Management's Responsibilities for the Consolidated Financial Results

The Statement has been prepared on the basis of the consolidated annual financial statements. The Holding Company's Board of Directors are responsible for the preparation and presentation of the Statement that give a true and fair view of the net profit and other comprehensive income and other financial information of the Group in accordance with the applicable accounting standards prescribed under section 133 of the Act read with relevant rules issued thereunder and other accounting principles generally accepted in India and in compliance with Regulation 33

of the Listing Regulations. The respective boards of directors of the companies included in the Group are responsible for maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Group and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Statement that give a true and fair view and are free from material misstatement, whether due to fraud or error, which have been used for the purpose of preparation of the Statement by the Directors of the Holding Company, as aforesaid.

In preparing the Statement, the respective boards of directors of the companies included in the Group are responsible for assessing the ability of the Group to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the respective boards of Director either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

The respective boards of directors of the companies included in the Group are also responsible for overseeing the financial reporting process of the Group.

Auditor's Responsibilities for the Audit of the Consolidated Financial Results

Our objectives are to obtain reasonable assurance about whether the Statement as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the Statement.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the Statement, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors.
• Conclude on the appropriateness of the Board of Directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of the Group to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the Statement or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the Statement, including the disclosures, and whether the Statement represent the underlying transactions and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial results/financial information of the entities within the Group of which we are the independent auditors and whose financial information we have audited, to express an opinion on the Statement. We are responsible for the direction, supervision and performance of the audit of the financial information of such entities included in the Statement of which we are the independent auditors.

We communicate with those charged with governance of the Holding Company and such other entities included in the Statement of which we are the independent auditors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

We also performed procedures in accordance with the Circular No. CIR/CFD/CMD1/44/2019 dated March 29, 2019 issued by the Securities Exchange Board of India under Regulation 33 (8) of the Listing Regulations, to the extent applicable.

Other Matter

The Statement includes the results for the quarter ended March 31, 2021 being the balancing figures between the audited figures in respect of the full financial year ended March 31, 2021 and the published unaudited year-to-date figures up to the end of the third quarter of the current financial year, which were subjected to a limited review by us, as required under the Listing Regulations.

For S.R. BATLIBOI & ASSOCIATES LLP

Chartered Accountants ICAI Firm Registration Number: 101049W/E300004

per Shankar Srinivasan Partner Membership No.: 213271 UDIN: 21213271AAAABG1464 Place: Hyderabad Date: April 29, 2021

	Statement of Audited Consolidated Financial Results for the quarter and year ended March 31, 2021 Sl. No. Particulars		Quarter ended	Year ended
		March 31, 2021	December 31, 2020	March 31, 2020	March 31, 2021	March 31, 2020
		(Refer note 3)		(Refer note 3)
$\mathbf{1}$	Income	Audited	Unaudited	Audited	Audited	Audited
	Revenue from operations
	Other income (refer note 6)	23,302.31	22,390.19	23,304.35	89,652.69	87,197.21
	Finance income	(33.97)	76.79	465.49	359.95	1,577.89
	Total income	164.72	360.29	198.94	985.32	585.06
$\overline{2}$		23,433.06	22,827.27	23,968.78	90,997.96	89,360.16
	Expenses
	Employee benefits expense Finance costs	13,408.28	13,321.36	13,553.54	52,158.27	51,896.38
		117.64	122.87	199.95	559.19	799.64
	Depreciation and amortisation expense	310.31	311.65	297.88	1,226.92	1,147.81
	Other expenses	6,568.74	5,874.38	6,596.07	22,947.82	22,432.04
	Total expenses	20,404.97	19,630.26	20,647.44	76,892.20	76,275.87
3	Profit before tax (1-2)	3,028.09	3,197.01	3,321.34	14,105.76	13,084.29
$\overline{4}$	Tax expense
	Current tax	715.45	638.30	395.66	3,205.78	971.38
	Taxes for earlier years (refer note 7)				894.65	(47.08)
	Deferred tax credit	(154.35)	(75.90)		(529.17)
	Total tax expense	561.10	562.40	395.66	3,571.26	924.30
5	Net profit for the period (3-4)	2,466.99	2,634.61	2,925.68	10,534.50	12,159.99
6	Items of other comprehensive income
	Other comprehensive income/(loss):
	a) items that will be reclassified to profit or loss	27.98	(101.77)	48.40	(269.39)	(58.45)
	b) items that will not be reclassified to profit or loss (net of tax)	50.72	(51.26)	(55.88)	(40.43)	(161.26)
	Total other comprehensive income/(loss)	78.70	(153.03)	(7.48)	(309.82)	(219.71)
$\overline{7}$	Total comprehensive income for the period (5+6)	2,545.69	2,481.58	2,918.20	10,224.68	11,940.28
8	Paid-up equity share capital (Face value of the share Rs. 10/- each)	2,802.00	2,789.50	2,784.63	2,802.00	2,784.63
9	Other equity				34,432.73	23,939.09
10	Earnings per share (EPS) (of Rs.10/-each) (not annualised) (amount in Rs.)
	Basic EPS	8.82	9.45	10.52	37.77	43.87
	Diluted EPS	8.82	9.39	10.48	37.77	43.69

Notes:

• $\mathbf{1}$ The above statement of audited consolidated financial results of Cigniti Technologies Limited ("the Company"), which have been prepared in accordance with the Indian Accounting Standards ('Ind AS') prescribed under Section 133 of the Companies Act, 2013 ("the Act") read with relevant rules issued thereunder, other accounting principles generally accepted in India and guidelines issued by the Securities and Exchange Board of India ("SEBI") were reviewed and recommended by the Audit Committee and thereafter approved at the meeting of the Board of Directors of the Company held on April 29, 2021. The Statutory Auditors have expressed an unmodified audit opinion on the consolidated financial results.
• $\overline{2}$ The consolidated financial results of the Group includes the results of the Company and results of the following wholly owned subsidiaries: $\overline{ }$

Name of the subsidiary
Gallop Solutions Private Limited, India
Cigniti Technologies Inc., USA
Cigniti Technologies (UK) Limited, UK
Cigniti Technologies (Australia) Pty Ltd, Australia
Cigniti Technologies Canada Inc., Canada

• $\overline{3}$ The figures of the quarters ended March are the balancing figures between audited figures in respect of full financial year upto March and the unaudited published year to date figures upto December of each year, being the date of the end of the third quarter of the respective financial years which were subjected to limited review.
• $\overline{4}$ Based on the internal reporting provided to the Chief Operating Decision Maker, the consolidated financial results relates to "Software testing services" as the only reportable primary segment of the Group.
• 5 The Company has allotted 125,000 and 173,750 equity shares of Rs. 10/- each during the quarter and year ended March 31, 2021 respectively, pursuant to exercise of options under employee stock option schemes and got the same listed at BSE & NSE.

$C, V, \nleftrightarrow$ NO₁ ^Hyderaba

Notes continued:

Other income includes 6

Particulars		Year ended
	March 31, 2021 (Refer note 3)	December 31, 2020	March 31, 2020 (Refer note 3)	March 31, 2021	March 31, 2020
Net foreign exchange gain/(loss)	(99.86)	81.59	(169.51)	218.70	(82.62)

Taxes for earlier years represents provision made for demands (including consequential impacts) received during the year ended March 31, 2021 and pertaining to $\overline{7}$ earlier years of Cigniti Technologies Inc., USA, wholly owned subsidiary of the Company.

• The Board of Directors at their meeting held on April 29, 2021 declared final dividend of Rs. 2.50/- per share on face value of Rs. 10/- each, total aggregating to 8 Rs.700.50 lakhs.
• The Group has considered internal and external information upto the date of approval of these consolidated financial results in assessing the recoverability of assets $\overline{Q}$ including trade receivables, unbilled receivables, goodwill and investments, based on which it expects to recover the carrying amount of these assets. The eventual outcome of impact of the global health pandemic may be different from those estimated as on the date of approval of these consolidated financial results.
• The code of Social Security, 2020 ('Code') relating to employee benefits during employment and post- employment received Presidential assent in September 2020 and $10$ its effective date is yet to be notified. The Company will assess and record the impact of Code, once its effective.
• 11 Consolidated audited statement of cash flows are attached in Annexure - 1B.
• The above consolidated financial results are also available on the stock exchange websites www.bseindia.com and www.nseindia.com and on our website $12$ www.cigniti.com.
• Previous period figures have been regrouped/reclassified wherever necessary to conform to the current period classification. 13

For Cigniti Technologies Limited

C.V. Subramanyam Chairman and Managing Director

Place: Hyderabad Date: April 29, 2021

Annexure-1A

Statement of consolidated assets and liabilities		(Rs. In Lakhs)
Particulars	As at	As at
	March 31, 2021	March 31, 2020
ASSETS	Audited	Audited
Non-current assets
Property, plant and equipment
Intangible assets	1,671.05	1,719.48
Right-to-use asset
Goodwill	2,165.75	2,989.92
Deferred tax asset, net	5,486.22	5,486.22
Financial assets	529.17
Loans
Other non-current financial assets	507.55	515.54
Subtotal - Non-current assets	10,359.74	350.00 11,061.16
Current assets
Financial assets
Investments
Loans	8,046.27	4,889.19
Trade receivables	64.06	64.15
Cash and cash equivalents	15,771.84	16,441.01
Bank balances other than cash and cash equivalents	2,561.22	762.20
Other current financial assets	10,230.40	7,950.37
Current tax assets, net	4,659.04	4,899.94
Other current assets	259.22 1,258.36	262.82
Subtotal - Current assets	42,850.41	1,659.95 36,929.63
Total Assets	53,210.15	47,990.79
EQUITY AND LIABILITIES
Equity
Equity share capital	2,802.00	2,784.63
Other equity	34,432.73	23,939.09
Subtotal - Equity	37,234.73	26,723.72
Liabilities
Non-current liabilities Financial liabilities
Lease obligations
Long term provisions	2,048.56	2,953.48
Subtotal - Non-current liabilities	1,234.54 3,283.10	900.90 3,854.38
Current liabilities
Financial liabilities
Short term borrowings Trade payables	1,611.26	8,377.26
i)total outstanding dues of micro enterprises and smallenterprises
ii) total outstanding dues of creditors other than microenterprises and small enterprises
Lease obligations	6,265.88	6,014.39
Other current financial liabilities	907.82 287.79	816.75
Short term provisions	255.81	139.58 285.13
Current tax liability, net	1,833.64	493.85
Other current liabilities	1,530.12	1,285.73
Subtotal - Current liabilities	12,692.32	17,412.69
Total Equity and Liabilities	53,210.15	47,990.79

$(1,1,2)$

ANOLO Hyderaba $\star$ 0 ີ

CIGNITI TECHNOLOGIES LIMITED

Suite 106,107, MGR Estates, Dwarakapuri Colony, Punjagutta, Hyderabad 500 082, Telangana, India
Ph: +91 (40) 30702255, Fax: +91 (40) 30702299
CIN: L72200TG1998PLC030081

			Annexure-1B
Consolidated statement of cash flows			(Rs. In Lakhs)
		Year ended	Year ended
		March 31, 2021	March 31, 2020
Cash flow from operating activities		Audited	Audited
Profit before tax
Adjustment to reconcile profit before tax to net cash flows:		14,105.76	13,084.29
Depreciation and amortisation expense
Interest income on bank deposits		1,226.92	1,147.81
Income on fair valuation of mutual funds		(536.53)	(439.47)
Interest income on income tax refund		(431.45)	(145.59)
		(17.34)
Interest expense, other borrowing cost and factoring charges		559.19	799.64
Unrealised foreign exchange loss/ (gain), net Share based payment expense		7.78	(0.81)
Provision for / (recoveries of) doubtful trade receivables, net		156.84	305.55
Liabilities no longer required written back, net		21.02	(260.65)
Bad debts written off		(92.98)	(254.46)
Operating profit before working capital changes		38.12	5.19
Movements in working capital		15,037.33	14,241.50
Increase in trade payables		344.47
Increase/ (decrease) in financial liabilities		133.26	600.20
Increase/ (decrease) in other liabilities		244.39	(69.58)
Increase/ (decrease) in provisions		263.89	(39.19) (16.31)
Decrease/ (increase) in trade receivables		602.25	(3,815.74)
Decrease/ (increase) in financial asset		207.64	(1, 446.95)
Decrease/ (increase) in other assets		401.59	(389.08)
Decrease/ (increase) in loans		8.08	(53.46)
Cash generated from operations		17,242.90	9,011.39
Income taxes paid (net of refunds)		(2,757.04)	(351.00)
Net cash generated from operating activities	(A)	14,485.86	8,660.39
Cash flows used in investing activities
Purchase of property, plant and equipment		(318.47)	(701.65)
Investments in mutual funds and debentures		(10, 535.98)	(4,743.60)
Redemption of mutual funds and debentures		7,810.35
Investment in bank deposits		(6, 148.52)	(10,959.15)
Redemption of bank deposits		4,218.49	2,672.10
Interest received Net cash used in investing activities		587.13	114.87
	(B)	(4,387.00)	(13, 617.43)
Cash flows used in financing activities
Proceeds from exercise of employee stock options		129.50	64.20
Payment towards lease obligation		(815.65)	(1,096.37)
Interest, other borrowing cost and factoring charges paid		(578.30)	(395.23)
Bill discounting with bank, net		(169.19)	169.19
Net cash used in financing activities	(C)	(1, 433.64)	(1, 258.21)
Net increase/ (decrease) in cash and cash equivalents	$(A+B+C)$	8,665.22	(6,215.25)
Exchange differences on translation of foreign currency balances		(269.39)	(58.45)
Cash and cash equivalents at the beginning of the year		(7, 445.87)	(1, 172.17)
Cash and cash equivalents at the end of the year		949.96	(7, 445.87)
Components of cash and cash equivalents
Balances with banks
-On current accounts		2,561.15	716.27
-Remittance in transit			45.88
Cash on hand		0.07	0.05
Cash credit facility Total cash and cash equivalents		(1,611.26)	(8,208.07)
		949.96	(7, 445.87)

$C, V. f w$

THE SKYVIEW 10 18th Floor, "NORTH LOBBY" Survey No. 83/1, Raidurgam Hyderabad – 500 032, India Tel: +91 40 6141 6000

Independent Auditor's Report on the Quarterly and Year to Date Audited Standalone Financial Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended

To The Board of Directors of Cigniti Technologies Limited

Report on the Audit of the Standalone Financial Results

Opinion

We have audited the accompanying statement of standalone financial results of Cigniti Technologies Limited (the "Company") for the quarter and year ended March 31, 2021 ("Statement"), attached herewith, being submitted by the Company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (the "Listing Regulations").

In our opinion and to the best of our information and according to the explanations given to us, the Statement:

• i. is presented in accordance with the requirements of the Listing Regulations in this regard; and
• ii. gives a true and fair view in conformity with the applicable accounting standards and other accounting principles generally accepted in India, of the net profit and other comprehensive income and other financial information of the Company for the quarter ended March 31, 2021 and net profit and other comprehensive loss and other financial information of the Company for the year ended March 31, 2021.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013, as amended ("the Act"). Our responsibilities under those Standards are further described in the "Auditor's Responsibilities for the Audit of the Standalone Financial Results" section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our opinion.

Management's Responsibilities for the Standalone Financial Results

The Statement has been prepared on the basis of the standalone annual financial statements. The Board of Directors of the Company are responsible for the preparation and presentation of the Statement that gives a true and fair view of the net profit and other comprehensive income of the Company and other financial information in accordance with the applicable accounting standards prescribed under Section 133 of the Act read with relevant rules issued thereunder and other accounting principles generally accepted in India and in compliance with Regulation 33 of the Listing Regulations. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Statement that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the Statement, the Board of Directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The Board of Directors are also responsible for overseeing the Company's financial reporting process.

Auditor's Responsibilities for the Audit of the Standalone Financial Results

Our objectives are to obtain reasonable assurance about whether the Statement as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the Statement.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the Statement, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors.
• Conclude on the appropriateness of the Board of Directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial results or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the Statement, including the disclosures, and whether the Statement represents the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

Other Matter

The Statement includes the results for the quarter ended March 31, 2021 being the balancing figure between the audited figures in respect of the full financial year ended March 31, 2021 and the published unaudited year-to-date figures up to the third quarter of the current financial year, which were subjected to a limited review by us, as required under the Listing Regulations.

For S.R. BATLIBOI & ASSOCIATES LLP

Chartered Accountants ICAI Firm Registration Number: 101049W/E300004

per Shankar Srinivasan Partner Membership No.: 213271 UDIN: 21213271AAAABE6791 Place: Hyderabad Date: April 29, 2021

	Sl. No. Particulars	Ouarter ended				Statement of Audited Standalone Financial Results for the quarter and year ended March 31, 2021 Year ended
		March 31, 2021 (Refer note 2)	December 31, 2020	March 31, 2020 (Refer note 2)	March 31, 2021	March 31, 2020
		Audited	Unaudited	Audited	Audited	Audited
$\mathbf{1}$	Income
	Revenue from operations	8,464.75	7,868.68	7,865.06	31,106.90	30,033.44
	Other income (refer note 5)	(57.07)	86.13	487.45	283.10	1,356.04
	Finance income	164.72	360.29	198.94	985.32	585.00
	Total income	8,572.40	8,315.10	8,551.45	32,375.32	31,974.48
$\overline{2}$	Expenses
	Employee benefits expense	5,802.70	5,643.99	5,175.30	21,349.89	19,255.22
	Finance costs	88.92	89.47	111.33	379.35	418.36
	Depreciation and amortisation expense	255.26	257.69	244.70	1,007.92	951.97
	Other expenses	1,047.22	876.84	1,319.85	3,673.12	4,860.02
	Total expenses	7,194.10	6,867.99	6,851.18	26,410.28	25,485.57
3	Profit before tax (1-2)	1,378.30	1,447.11	1,700.27	5,965.04	6,488.91
$\overline{4}$	Tax expense
	Current tax	239.81	245.76	121.05	1,050.19	523.44
	Deferred tax credit	(154.35)	(75.90)		(529.17)
	Total tax expense	85.46	169.86	121.05	521.02	523.44
5	Net profit for the period (3-4)	1,292.84	1,277.25	1,579.22	5,444.02	5,965.47
6	Items of other comprehensive income
	Other comprehensive income/ (loss) - items that will not be reclassified to profit or loss (net of tax)	50.72	(51.26)	(55.88)	(40.43)	(161.26)
	Total other comprehensive income/(loss)	50.72	(51.26)	(55.88)	(40.43)	(161.26)
7	Total comprehensive income for the period $(5+6)$	1,343.56	1,225.99	1,523.34	5,403.59	5,804.21
8	Paid-up equity share capital (Face value of the share Rs. 10/-each)	2,802.00	2,789.50	2,784.63	2,802.00	2,784.63
9	Other equity				32,255.54	26,582.99
10	Earnings per share (EPS) (of Rs.10/-each) (not annualised) (amount in Rs.)
	Basic EPS	4.62	4.58	5.68	19.52	21.52
	Diluted EPS	4.62	4.55	5.66	19.52	21.44

Notes: $\overline{1}$

The above statement of audited standalone financial results of Cigniti Technologies Limited ("the Company"), which have been prepared in accordance with the Indian Accounting Standards ('Ind AS') prescribed under Section 133 of the Companies Act, 2013 ("the Act") read with relevant rules issued thereunder, other accounting principles generally accepted in India and guidelines the Audit Committee and thereafter approved at the meeting of the Board of Directors of the Company held on April 29, 2021. The Statutory Auditor have expressed an unmodified audit opinion on the standalone financial results.

$\overline{2}$ The figures of the quarters ended March are the balancing figures between audited figures in respect of full financial year upto March and the unaudited published year to date figures upto December of each year, being the date of the end of the third quarter of the respective financial years which were subjected to limited review.

3 Based on the internal reporting provided to the Chief Operating Decision Maker, the standalone financial results relates to "Software testing services" as the only reportable primary segment of the Company.

The Company has allotted 125,000 and 173,750 equity shares of Rs. 10/- each during the quarter and year ended March 31, 2021 respectively, pursuant to exercise of $\overline{4}$ options under employee stock option schemes and got the same listed at BSE $\&$ NSE.

5 Other income includes:

Particulars	Ouarter ended			Year ended
	March 31, 2021	December 31, 2020	March 31, 2020	March 31, 2021	March 31, 2020
Net foreign exchange gain/(loss)	(57.07)	86.13	(76.93)	283.10	115.92

The Board of Directors at their meeting held on April 29, 2021 declared final dividend of Rs. 2.50/- per share on face value of Rs. 10/- each, total aggregating to $6\overline{6}$ Rs.700.50 lakhs.

The Company has considered internal and external information upto the date of approval of these standalone financial results in assessing the recoverability of assets $\overline{7}$ including trade receivables, unbilled receivables and investments, based on which it expects to recover the carrying amount of these assets. The eventual outcome of impact of the global health pandemic may be different from those estimated as on the date of approval of these standalone financial results.

$C_vV, F_v$ JOLO Hyderaba ٠

Notes continued:

• The code of Social Security, 2020 ('Code') relating to employee benefits during employment and post-employment received Presidential assent in September 2020 and its effective date is yet to be notified. The Company will a 8
• $\overline{9}$ Standalone audited statement of cash flows are attached in Annexure - 2B.
• The above standalone financial results are also available on the stock exchange websites www.bseindia.com and www.nseindia.com and on the Company's website 10 www.cigniti.com.
• Previous period figures have been regrouped/reclassified wherever necessary to conform to the current period classification. $11\,$

For Cigniti Technologies Ltd

NOLO Hyderaba C.V. Subramanyam Chairman and Managing Director

Place: Hyderabad Date: April 29, 2021

$\epsilon^2$

$\mathbf{A}$

Annexure - 2A

Statement of standalone assets and liabilities		(Rs. In Lakhs)
Particulars	As at	As at
	March 31, 2021	March 31, 2020
	Audited	Audited
ASSETS
Non-current assets
Property, plant and equipment	1,553.22	1,569.59
Intangible assets
Right-to-use asset	2,001.61	2,678.90
Deferred tax asset, net	529.17
Financial assets
Investments	6,941.31	6,941.31
Loans	507.55	515.54
Other non-current financial assets		350.00
Subtotal - Non-current assets	11,532.86	12,055.34
Current assets
Financial assets
Investments	8,046.27	4,889.19
Loans	0.84	0.84
Trade receivables	8,672.70	7,432.00
Cash and cash equivalents	1,513.85	365.17
Bank balances other than cash and cash equivalents	10,230.40	7,950.37
Other current financial assets	3,262.63	4,316.10
Current tax assets, net	255.16	258.68
Other current assets	1,028.51	1,471.69
Subtotal - Current assets	33,010.36	26,684.04
Total Assets	44,543.22	38,739.38
EQUITY AND LIABILITIES
Equity
Equity share capital	2,802.00	2,784.63
Other equity	32,255.54	26,582.99
Subtotal - Equity	35,057.54	29,367.62
Liabilities
Non-current liabilities
Financial liabilities
Lease obligations	2,027.36	2,771.50
Long term provisions	1,234.54	900.90
Subtotal - Non-current liabilities	3,261.90	3,672.40
Current liabilities
Financial liabilities
Short term borrowings	1,611.26	1,336.37
Trade payables
i)total outstanding dues of micro enterprises and small enterprises
ii) total outstanding dues of creditors other than micro enterprises and small enterprises	1,074.81	1,061.49
Lease obligations	744.67	664.81
Other current financial liabilities	2,332.40	2,220.16
Short term provisions Other current liabilities	131.62	115.63
Subtotal - Current liabilities	329.02 6,223.78	300.90
Total Equity and Liabilities	44,543.22	5,699.36 38,739.38

$(1, 1)$ VOLC TER Hyderaba

Annexure - 2B

Hyderaba

Standalone statement of cash flows			(Rs. In Lakhs)
		Year ended	Year ended
		March 31, 2021	March 31, 2020
		Audited	Audited
Cash flow from operating activities Profit before tax
Adjustment to reconcile profit before tax to net cash flows:		5,965.04	6,488.91
Depreciation on property, plant and equipment
Interest income		1,007.92	951.97
Income on fair valuation of mutual funds		(536.53)	(439.41)
Interest expense and other borrowing cost		(431.45)	(145.59)
Unrealised foreign exchange (gain)/ loss, net		379.35	418.36
Share based payment expense			(60.44)
Provision for/(recoveries of) doubtful trade receivables, net		156.84	303.32
Bad debts written off		91.67 13.61	(108.24)
Operating profit before working capital changes		6,646.45
Movements in working capital			7,408.88
Increase in trade payables		13.31	93.52
Increase in other liabilities		28.12	218.46
Increase/ (decrease) in provisions		309.20	(11.59)
(Increase)/decrease in trade receivables		(1,345.98)	3,572.04
Decrease/(increase) in other assets		443.18	(371.23)
Decrease/(increase) in loans		7.99	(53.27)
Deacrease/ (increase) in other financial assets		1,020.21	(1,056.40)
Increase in other financial liabilities		78.19	81.92
Cash generated from operations		7,200.67	9,882.33
Income taxes paid (net of refunds)		(1,046.67)	(582.30)
Net cash generated from operating activities	(A)	6,154.00	9,300.03
Cash flows used in investing activities
Purchase of property, plant and equipment
Investments in mutual funds and debentures		(280.21)	(555.65)
Redemption of mutual funds and debentures		(10, 535.98)	(4,743.60)
Investment in bank deposits		7,810.35
Redemption of bank deposits		(6, 148.52)	(10, 959.15)
Interest received		4,218.49	2,668.69
Net cash used in investing activities		569.79	114.80
	(B)	(4,366.08)	(13, 474.91)
Cash flows used in financing activities
Proceeds from exercise of employee stock options		129.50	64.20
Interest paid		(21.17)	(23.06)
Payment towards lease obligation		(1,022.46)	(951.24)
Net cash used in financing activities	(C)	(914.13)	(910.10)
Net increase/ (decrease) in cash and cash equivalents	$(A+B+C)$
Cash and cash equivalents at the beginning of the year		873.79 (971.20)	(5,084.98)
Cash and cash equivalents at the end of the year		(97.41)	4,113.78 (971.20)
Components of cash and cash equivalents
Balances with banks
-On current accounts		1,513.79	319.24
-Remittance in transit			45.88
Cash on hand Cash credit from banks		0.06	0.05
Total cash and cash equivalents		(1,611.26)	(1,336.37)
		(97.41)	(971.20)
			OLOG