Cigniti Technologies Ltd — Interim / Quarterly Report 2021

Jan 28, 2021

28th January 2021

National Stock Exchange of India Ltd, Exchange Plaza, Bandra Kurla Complex, Bandra (East), Mumbai - 400051. Fax No.26598237/26598238

BSE Limited P.J. Towers, Dalal Street Mumbai - 400001. Fax No.22722037/22723121

Scrip code: 534758

Name of Scrip: CIGNITITEC

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

With reference to the subject cited, this is to inform the Exchange that at the meeting of the Board of Directors of M/s. Cigniti Technologies Limited held on Thursday, 28th January, 2021 at 2.00 P.M. at the corporate office of the company situated at 9th Floor, Atria Building, "The V" (Ascendas) Plot No#17, Software Units Layout, Madhapur, Hyderabad - 500081 Telangana, India the following were duly considered and approved by the Board:

• 1. Un-Audited financial results on consolidated and standalone basis for the quarter & nine months ended 31.12.2020.(enclosed)
• 1. Limited Review report for the Quarter ended 31.12.2020.(enclosed)
• 1. The Board of Directors have noted that the Nomination & Remuneration Committee in its meeting held on 28th January 2021 have allotted 1,25,000 equity shares pursuant to exercise of Employee Stock Options and granted 2,75,000 options to Mr. Ganesh Ramamoorthy, Chief Revenue officer of Cigniti Technologies Inc; USA a wholly owned subsidiary of the Company.
• 1. Opening of Wholly owned Subsidiary Company in Singapore and Czech Republic.

The above meeting was commenced at 2.00 P.M. (IST) and concluded at 4.10 P.M. (IST).

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

Hyderaba

Thanking you.

Yours Faithfully, For Cigniti Technologies Limited

Nagabasud A.N.Vasudha

Company Secretary

Cigniti Technologies Ltd. Registered Office Suite 106 & 107, MGR Estates, Dwarakapuri Colony, Panjagutta, Hyderabad 500 082, Telangana, India Corporate Office

6th Floor, ORION Block, The V (Ascendas), Plot #17, Software Units Layout Madhapur, Hyderabad 500 081, Telangana, India CIN: L72200TG1998PLC30081 0+91 (40) 2335 3808 0+91 (40) 3070 2299 USA

433 E Las Colinas Blvd, #1240 Irving, TX 75039 2 972.756.0622 972.767.0948/0644

CIGNITI TECHNOLOGIES LIMITED

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

CIN: L72200TG1998PLC030081

							(Rs. In Lakhs)
	Statement of Unaudited Consolidated Financial Results for the quarter and nine month period ended December 31, 2020
Sl. No. Particulars		Ouarter ended			Nine month ended		Year ended
		December 31, 2020	September 30, 2020	December 31, 2019	December 31, 2020	December 31, 2019	March 31, 2020
		Unaudited	Unaudited	Unaudited	Unaudited	Unaudited	Audited
$\mathbf{1}$	Income
	Revenue from operations	22,390.19	22,119.91	21,674.89	66,350.38	63,892.86	87,197.21
	Other income (refer note 5)	76.79	83.57	370.18	393.92	1,112.40	1,577.89
	Finance income	360.29	209.30	193.50	820.60	386.12	585.06
	Total income	22,827.27	22,412.78	22,238.57	67,564.90	65,391.38	89,360.16
$\overline{2}$	Expenses
	Employee benefits expense	13,321.37	12,323.11	12,888.57	38,749.99	38,342.84	51,896.38
	Finance costs	122.87	156.72	201.17	441.55	599.69	799.64
	Depreciation and amortisation expense	311.64	303.22	278.24	916.61	849.93	1,147.81
	Other expenses	5,874.38	5,375.96	5,923.94	16,379.08	15,835.97	22,432.04
	Total expenses	19,630.26	18,159.01	19,291.92	56,487.23	55,628.43	76,275.87
3	Profit before tax (1-2)	3,197.01	4,253.77	2,946.65	11,077.67	9,762.95	13,084.29
$\overline{4}$	Tax expense
	Current tax	638.30	1,000.12	181.87	2,490.32	575.72	971.38
	Taxes for earlier years (refer note 6)		894.65	(47.08)	894.65	(47.08)	(47.08)
	Deferred tax credit	(75.90)	(163.30)		(374.82)
	Total tax expense	562.40	1,731.47	134.79	3,010.15	528.64	924.30
5	Net profit for the period (3-4)	2,634.61	2,522.30	2,811.86	8,067.52	9,234.31	12,159.99
6	Items of other comprehensive income
	Other comprehensive income/(loss):
	a) items that will be reclassified to profit or loss	(101.77)	(50.33)	(63.85)	(297.37)	(106.85)	(58.45)
	b) items that will not be reclassified to profit or loss	(51.26)	(91.11)	(44.47)	(91.15)	(105.38)	(161.26)
	Total other comprehensive income/(loss)	(153.03)	(141.44)	(108.32)	(388.52)	(212.23)	(219.71)
$\overline{7}$	Total comprehensive income for the period (5+6)	2,481.58	2,380.86	2,703.54	7,679.00	9,022.08	11,940.28
8	Paid-up equity share capital	2,789.50	2,785.75	2,771.43	2,789.50	2,771.43	2,784.63
	(Face value of the share Rs. 10/-each)
9	Other equity						23,939.09
10	Earnings per share (EPS) (of Rs.10/- each) (not annualised)
	(amount in Rs.)
	Basic EPS	9.45	9.06	10.15	28.96	33.36	43.87
	Diluted EPS	9.39	9.01	10.06	28.80	33.08	43.69
	See accompanying notes to the consolidated financial results.

Notes:

The above unaudited consolidated financial results of Cigniti Technologies Limited ('the Company') were reviewed and recommended by the Audit Committee and thereafter approved at the meeting of the Board of Directors of the Company held on January 28, 2021. The Statutory Auditors have carried out a limited review on the unaudited consolidated financial results and issued dified report thereor

2 The consolidated financial results of the Group includes the results of the Company and its following subsidiaries:

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

3 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.

$\frac{4}{3}$ The Company has allotted 37,500 equity shares of Rs. 10/- each during the quarter ended December 31, 2020, pursuant to exercise of options under employee stock option schemes and got the same listed at BSE & NSE.

Other income includes
Particulars	Ouarter ended			Nine month ended	Year ended
	2020December 37	September 30, 2020	December 31, 2019	December 31, 2020	December 31, 2019	March 31, 2020
INet exchange gain/(loss)	81.59	14.39	183.51	318.56	86.89	(82.62)

$\overline{6}$ Taxes for earlier vears repre nts provision made for demands (including consequential impacts) received during the nine month period ended December 31, 2020 and pertaining to earlier years of Cigniti Technologies Inc., USA, wholly owned subsidiary of the Company.

The Group has considered internal and external information upto the date of approval of these consolidated financial results in assessing the recoverability of assets 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 its effective date is yet to be notified. The Company will a $,$ 8 $,$

9 The above consolidated financial results are also available on the stock exchange websites www.bseindia.com and www.nseindia.com and the Company's website www.cigniti.com.

10 Previous period figures have been regrouped/reclassified wherever necessary to conform to the current period classification.

For Cigniti Technologies Limited

C.V. Subramanyam Chairman and Managing Director

Place: Hyderabad Date: January 28, 2021

S.R. BATLIBOI & ASSOCIATES LLP

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

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

Review Report to The Board of Directors Cigniti Technologies Limited

• 1. We have reviewed the accompanying statement of unaudited consolidated financial results of Cigniti Technologies Limited (the "Holding Company") and its subsidiaries (the Holding Company and its subsidiaries together referred to as the "Group"), for the quarter and nine month period ended December 31, 2020 (the "Statement") attached herewith, being submitted by the Holding Company pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (the "Listing Regulations").
• This Statement, which is the responsibility of the Holding Company's Management and approved by 2. the Holding Company's Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34, (Ind AS 34) "Interim Financial Reporting" prescribed under Section 133 of the Companies Act, 2013 as amended, read with relevant rules issued thereunder and other accounting principles generally accepted in India. Our responsibility is to express a conclusion on the Statement based on our review.
• 1. We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Institute of Chartered Accountants of India. This standard requires that we plan and perform the review to obtain moderate assurance as to whether the Statement is free of material misstatement. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

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

1. The Statement 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
• 1. Based on our review conducted and procedures performed as stated in paragraph 3 above and based on the consideration of the review reports of other auditors referred to in paragraph 6 and 7 below, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in

S.R. BATLIBOI & ASSOCIATES LLP

Chartered Accountants

accordance with recognition and measurement principles laid down in the aforesaid Indian Accounting Standards ('Ind AS') specified under Section 133 of the Companies Act, 2013, as amended, read with relevant rules issued thereunder and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of the Listing Regulations, including the manner in which it is to be disclosed, or that it contains any material misstatement.

1. The accompanying statement includes the unaudited interim financial results and other financial information, in respect of four subsidiaries, whose unaudited interim financial results include total revenues of Rs. 3,162.01 lakhs and Rs. 9,052.52 lakhs, total net profit after tax of Rs. 293.49 lakhs and Rs. 278.26 lakhs, total comprehensive income of Rs. 293.49 lakhs and Rs. 278.26 lakhs, for the quarter and nine month period ended December 31, 2020 respectively, as considered in the Statement which have been reviewed by their respective independent auditors.

The independent auditor's reports on interim financial results of these entities have been furnished to us by the Management and our conclusion on the Statement, in so far as it relates to the amounts and disclosures in respect of these subsidiaries is based solely on the report of such auditors and procedures performed by us as stated in paragraph 3 above.

1. Certain of these subsidiaries are located outside India whose financial results and other financial information have been prepared in accordance with accounting principles generally accepted in their respective countries and which have been reviewed by other auditors under generally accepted auditing standards applicable in their respective countries. The Holding Company's management has converted the financial results of such subsidiaries located outside India from accounting principles generally accepted in their respective countries to accounting principles generally accepted in India. We have reviewed these conversion adjustments made by the Holding Company's management. Our conclusion in so far as it relates to the balances and affairs of such subsidiaries located outside India is based on the report of other auditors and the conversion adjustments prepared by the management of the Holding Company and reviewed by us.

Our conclusion on the Statement in respect of matters stated in para 6 and 7 above is not modified with respect to our reliance on the work done and the reports of the other auditors.

For S.R. BATLIBOI & ASSOCIATES LLP Chartered Accountants ICAI Firm Registration Number: 101049W/E300004

per Shankar Srinivasan Partner Membership No.: 213271 UDIN:21213271AAAAAH5457 Place: Hyderabad Date: January 28, 2021

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

$(De, In, I0)$

	Sl. No. Particulars		Ouarter ended		Nine months ended		Year ended
		December 31, 2020	September 30, 2020	December 31, 2019	December 31, 2020	December 31, 2019	March 31, 2020
		Unaudited	Unaudited	Unaudited	Unaudited	Unaudited	Audited
$\mathbf{1}$	Income
	Revenue from operations	7,868.68	7,474.05	7,468.75	22,642.15	22,168.38	30,033.44
	Other income (refer note 4)	86.13	94.18	279.28	340.17	868.59	1,356.04
	Finance income	360.29	209.31	193.50	820.60	386.06	585.00
	Total income	8,315.10	7,777.54	7.941.53	23,802.92	23,423.03	31,974.48
$\overline{2}$	Expenses
	Employee benefits expense	5,643.99	4,843.80	4,830.90	15,547.19	14,079.92	19,255.22
	Finance costs	89.47	105.51	103.29	290.43	307.03	418.36
	Depreciation and amortisation expense	257.69	248.91	231.54	752.66	707.27	951.97
	Other expenses	876.84	762.36	1,089.38	2,625.90	3,540.17	4,860.02
	Total expenses	6,867.99	5,960.58	6,255.11	19,216.18	18,634.39	25,485.57
3	Profit before tax (1-2)	1,447.11	1,816.96	1,686.42	4,586.74	4,788.64	6,488.91
$\boldsymbol{A}$	Tax expense
	Current tax	245.76	326.59	153.72	810.38	402.39	523.44
	Deferred tax credit	(75.90)	(163.30)		(374.82)
	Total tax expense	169.86	163.29	153.72	435.56	402.39	523.44
5	Net profit for the period (3-4)	1,277.25	1,653.67	1,532.70	4,151.18	4,386.25	5,965.47
6	Items of other comprehensive income
	Other comprehensive income/ (loss) - items that will not bereclassified to profit or loss (net of tax)	(51.26)	(91.11)	(42.47)	(91.15)	(105.38)	(161.26)
	Total other comprehensive income/(loss)	(51.26)	(91.11)	(42.47)	(91.15)	(105.38)	(161.26)
7	Total comprehensive income for the period (5+6)	1,225.99	1,562.56	1,490.23	4,060.03	4,280.87	5,804.21
8	Paid-up equity share capital(Face value of the share Rs. 10/-each)	2,789.50	2,785.75	2.771.43	2,789.50	2,771.43	2,784.63
9	Other equity						26,582.99
10	Earnings per share (EPS) (of Rs.10/- each) (not annualised)(amount in Rs.)
	Basic EPS	4.58	5.94	5.53	14.90	15.84	21.52
	Diluted EPS	4.55	5.91	5.49	14.82	15.71	21.44

Notes:

The above unaudited standalone financial results of Cigniti Technologies Limited ('the Company') were reviewed and recommended by the Audit Committee and thereafter approved at the meeting of the Board of Directors of the $\overline{1}$ unmodified report thereon.

$\overline{2}$ 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.

3 The Company has allotted 37,500 equity shares of Rs. 10/- each during the quarter ended December 31, 2020, pursuant to exercise of options under employee stock option schemes and got the same listed at BSE & NSE.

$\overline{4}$	Other income includes

Particulars	Quarter ended			Nine months ended		Year ended
	31, 2020December.	September 30, 2020	December 31, 2019	December 31, 2020	March 31, 2020
Net foreign exchange gain/(loss)	86.13	94.18	220.99	340.17	192.85	115.92

5 The Company has considered internal and external information upto the date of approval of these standalone financial results in assessing the recoverability of assets 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.

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 6 notified. The Company will assess and record the impact of Code, once it becomes effective.

$\overline{7}$ 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 www.cigniti.com.

Previous period figures have been regrouped/reclassified wherever necessary to conform to the current period classification. 8

For Cigniti Technologies Ltd

C.V. Subramanyam

Chairman and Managing Director

Place: Hyderabad Date: January 28, 2021

S.R. BATLIBOL& ASSOCIATES LLP

Chartered Accountants

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

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

Review Report to The Board of Directors Cigniti Technologies Limited

• $\overline{1}$ . We have reviewed the accompanying statement of unaudited standalone financial results of Cigniti Technologies Limited (the "Company") for the quarter and nine month period ended December 31, 2020 (the "Statement") attached herewith, being submitted by the Company pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (the "Listing Regulations").
• $2.$ This Statement, which is the responsibility of the Company's Management and approved by the Company's Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34, (Ind AS 34) "Interim Financial Reporting" prescribed under Section 133 of the Companies Act, 2013 as amended, read with relevant rules issued thereunder and other accounting principles generally accepted in India. Our responsibility is to express a conclusion on the Statement based on our review.
• $31$ We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Institute of Chartered Accountants of India. This standard requires that we plan and perform the review to obtain moderate assurance as to whether the Statement is free of material misstatement. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
• $4.$ Based on our review conducted as above, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with the recognition and measurement principles laid down in the aforesaid Indian Accounting Standards ('Ind AS') specified under Section 133 of the Companies Act, 2013 as amended, read with relevant rules issued thereunder and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of the Listing Regulations, including the manner in which it is to be disclosed, or that it contains any material misstatement.

For S.R. BATLIBOI & ASSOCIATES LLP Chartered Accountants ICAI Firm Registration Number: 101049W/E300004

$\Omega$

per Shankar Srinivasan Partner Membership No.: 213271 UDIN:21213271AAAAAI9480 Place: Hyderabad Date: January 28, 2021