SoftTech Engineers Limited — Annual Report 2020

Jul 10, 2020

To, National Stock Exchange of India Limited Bandra-Kurla Complex Bandra (East) Mumbai – 400 051

10th July, 2020

Scrip Code: SOFTTECH

Mr. Pratik Patel

SUBJET: Outcome of Board Meeting held on 10th July, 2020 as per Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements), 2015

Pursuant to regulation 30 and 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we would like to inform that the Board of Directors of the Company at its meeting held Today, i.e. 10th July, 2020 which commenced at 2.00 PM and concluded at 6.30 PM have considered and approved the following:

• 1. The Board of Directors considered and approved Audited financial results and Financial Statements (Standalone and Consolidated) for the half year and financial year ended 31st March, 2020.
• 1. Considering the Pandemic situation and in order to conserve the resources, the Board of Directors have recommended NIL dividend for the Financial Year 2019-20.
• 1. The Board of Directors approved incorporation of a subsidiary Company under section 8 of the Companies Act, 2013 for expenditure under CSR.

1. The Board of Directors considered and considered and approved appointment of Mr. Pratik Patel as Additional Director of the Company with effect from the date of approval of his Director Identification Number (DIN) Reason for change: Appointment Date of appointment: with effect from the date of approval of his Director Identification Number (DIN) Term of appointment: up to the date of the next Annual General Meeting. Disclosure of relationships between directors: None of the Directors are related to

Brief profile:

Mr. Pratik Patel holds bachelor's degree in science stream (BSc. IT) and Master degree in Business Administration (MBA) from Edinburgh Napier University, Edinburgh (UK). He has over 10 years of experience of handling various managerial assignments in the areas of Operations for Software Development Company and Real Estate Business/ Constructions.

1. The Board of Directors considered and considered and approved appointment of Mr. Sundararajan Srinivasan as an Independent Director by change in his designation from Non-executive Director to Non-executive Independent Director of the Company subject to approval of shareholders.

Reason for change: Appointment and change in designation

Date of appointment: 10th July, 2020

Term of appointment: For the term of 5 years

Disclosure of relationships between directors: None of the Directors are related to Mr. Sundararajan Srinivasan

Brief profile:

Mr. Sundararajan Srinivasan holds a Master's degree in Control & Instrumentation from IIT Bombay. He has been developing and leading innovations in India, Asia, Europe, and US over the past 31 years. He has covered a range of technology areas in computing, communication and control. In his early career, he has pioneered indigenous digital power plant control systems for small hydro and bagasse-based cogeneration plants in sugar industry in India. He has led global R&D functions in Philips, NXP and Intel. He has served as Managing Director of Intel Mobile GmbH in Munich for 3 years, while leading development of Mobile platform software. He has been on the Board of SoftTech since 27th August, 2019 as Non-executive Director of the Company.

Kindly take the same on record.

For SoftTech Engineers Limited

AISHWARYA PATWARDHAN COMPANY SECRETARY

Walker Chandiok & Co LLP 16th floor, Tower II, Indiabulls Finance Centre, SB Marg, Prabhadevi (W) Mumbai – 400 013 India T +91 22 6626 2699 F +91 22 6626 2601

Independent Auditor's Report on Standalone Annual 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 SoftTech Engineers Limited

Opinion

• 1. We have audited the accompanying standalone annual financial results ('the Statement') of SoftTech Engineers Limited ('the Company') for the year ended 31 March 2020, 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) ('Listing Regulations'), including relevant circulars issued by the SEBI from time to time.
• 1. In our opinion and to the best of our information and according to the explanations given to us, the Statement:
  • (i) presents financial results in accordance with the requirements of Regulation 33 of the Listing Regulations; and
  • (ii) gives a true and fair view in conformity with the applicable Accounting Standards ('AS') prescribed under Section 133 of the Companies Act, 2013 ('the Act'), read with relevant rules issued thereunder, and other accounting principles generally accepted in India, of the standalone net profit after tax and other financial information of the Company for the year ended 31 March 2020.

Basis for Opinion

1. We conducted our audit in accordance with the Standards on Auditing ('SAs') specified under section 143(10) of the Act. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Statement 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 ('the ICAI') 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.

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Walker Chandiok & Co LLP is registered with limited liability with identification number AAC-2085 and its registered office at L-41 Connaught Circus, New Delhi, 110001, India

Chartered Accountants

Offices in Bengaluru, Chandigarh, Chennai, Gurugram, Hyderabad, Kochi, Kolkata, Mumbai, New Delhi, Noida and Pune

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

Responsibilities of Management and Those Charged with Governance for the Statement

• 1. This Statement has been prepared on the basis of the standalone annual audited financial statements and has been approved by the Company's Board of Directors. The Company's Board of Directors is responsible for the preparation and presentation of the Statement that gives a true and fair view of the net profit and other financial information of the Company in accordance with the accounting principles generally accepted in India, including AS 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 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 gives a true and fair view and is free from material misstatement, whether due to fraud or error.
• 1. In preparing the Statement, the Board of Directors is 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.
• 1. The Board of Directors is also responsible for overseeing the Company's financial reporting process.

Auditor's Responsibilities for the Audit of the Statement

• 1. 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 Standards on Auditing, specified under section 143(10) of the Act, 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 this Statement.
• 1. As part of an audit in accordance with the Standards on Auditing, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
  • x 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.
  • x 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 in place adequate internal financial controls with reference to financial statements and the operating effectiveness of such controls.

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

• x Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the management.
• x Conclude on the appropriateness of the management's 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 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 Company to cease to continue as a going concern.
• x 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.
• 1. 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.
• 1. 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

1. The Statement includes the financial results for the half year ended 31 March 2020, being the balancing figures between the audited figures in respect of the full financial year and the published unaudited year-to-date figures for the half year ended 30 September 2019, which were subject to limited review by us.

For Walker Chandiok & Co LLP

Chartered Accountants Firm Registration No.: 001076N/N500013

BHARAT KOCHU SHETTY

Digitally signed by BHARAT KOCHU SHETTY Date: 2020.07.10 18:12:45 +05'30'

Bharat Shetty Partner Membership No:106815

UDIN No:20106815AAAABX5284

Place: Mumbai Date: 10 July 2020 SoftTech Engineers Limited CIN: L30107PN1996PLC016718, Website: www.softtech-engr.com Registered Office: The Pentagon, Unit No. 5A, Near Satara Road Telephone Exchange, Shahu College Road, Parvati, Pune - 411009, Maharashtra.

Statement of Standalone Financial Results for the year ended 31 March 2020

						Amount in ₹
Sr.	Particulars		Half-year ended			Year ended
no.		31 March 2020	30 September	31 March 2019	31 March 2020	31 March 2019
		(Unudited)	2019	(Unudited)	(Audited)	(Audited)
		(refer note 4	(Unaudited)	(refer note 4
		below)		below)
1	Income
	(a) Revenue from operations	309,422,004	270,048,192	331,518,315	579,470,196	627,554,789
	(b) Other income	6,069,282	3,473,506	3,910,214	9,542,788	8,013,525
	Total income	315,491,286	273,521,698	335,428,529	589,012,984	635,568,314
2	Expenses
	(a) Purchases of stock-in-trade	34,975,107	27,215,252	30,422,870	62,190,359	49,229,196
	(b) Employee benefits expense	54,952,757	55,950,066	48,956,210	110,902,823	98,329,133
	(c) Finance costs	9,799,552	7,121,966	8,086,374	16,921,518	16,837,085
	(d) Depreciation and amortisation expense	18,596,859	18,597,818	20,386,992	37,194,677	40,419,359
	(e) Professional fees for technical consultants	73,586,815	81,000,520	116,585,772	154,587,335	223,798,699
	(f) Other expenses	50,643,722	48,023,753	49,489,707	98,667,475	97,709,217
	Total expenses	242,554,812	237,909,375	273,927,925	480,464,187	526,322,689
3	Profit before tax (1 - 2)	72,936,474	35,612,323	61,500,604	108,548,797	109,245,625
4	Tax expense
	Current tax	21,139,152	11,860,848	19,680,000	33,000,000	35,280,000
	Deferred tax charge/(credit)	(173,779)	(1,342,845)	(1,572,008)	(1,516,624)	(3,969,167)
5	Net profit for the period/year (3 - 4)	51,971,101	25,094,320	43,392,612	77,065,421	77,934,792
6	Paid-up equity share capital	94,224,760	94,224,760	94,224,760	94,224,760	94,224,760
	(Face value per share, ₹10 each)
7	Reserves (excluding revaluation reserves ₹ Nil)	-	-	-	589,073,567	517,308,252
8	Earnings per share (of ₹10 each)
	(not annualised):
	(a) Basic	5.52	2.66	4.61	8.18	8.50
	(b) Diluted	5.48	2.65	4.57	8.12	8.44

SoftTech Engineers Limited Statement of Standalone Assets and Liabilities

			Amount in ₹
Sr.		As at	As at
	Particulars	31 March 2020	31 March 2019
no.		(Audited)	(Audited)
	A Equity and liabilities
1	Shareholders' funds
	(a) Share capital	94,224,760	94,224,760
	(b) Reserves and surplus	589,073,567	517,308,252
		683,298,327	611,533,012
2	Share application money pending allotment	220,980	-
3	Non-current liabilities
	(a) Long-term borrowings	167,233,425	56,734,747
	(b) Other long-term liabilities	50,000	50,000
	(c) Long-term provisions	8,870,092	6,463,991
		176,153,517	63,248,738
4	Current liabilities
	(a) Short-term borrowings	108,630,172	70,692,697
	(b) Trade payables
	Total outstanding dues of micro enterprises and small enterprises	1,096,604	224,112
	Total outstanding dues of creditors other than micro enterprises and small enterprises	19,918,014	16,522,300
	(c) Other current liabilities	90,084,612	89,472,920
	(d) Short-term provisions	9,391,121	3,020,672
		229,120,523	179,932,701
	Total	1,088,793,347	854,714,451
	B Assets
1	Non-current assets
	(a) Property, plant and equipment	9,137,325	10,865,912
	(b) Intangible assets	100,176,541	77,377,080
	(c) Intangible assets under development	60,577,178	51,078,849
	(d) Non-current investments	17,432,080	5,872,374
	(e) Deferred tax assets (net)	13,119,791	11,603,167
	(f) Long-term loans and advances	30,945,663	19,251,651
	(g) Other non-current assets	96,738,365	81,670,934
		328,126,943	257,719,967
2	Current assets
	(a) Current investments	85,220,553	108,965,141
	(b) Trade receivables	359,860,947	188,227,694
	(c) Cash and bank balances	1,215,898	12,944,533
	(d) Short-term loans and advances	6,738,172	14,039,657
	(e) Other current assets	307,630,834	272,817,459
		760,666,404	596,994,484
	Total	1,088,793,347	854,714,451

Registered Office: The Pentagon, Unit No. 5A, Near Satara Road Telephone Exchange, Shahu College Road, Parvati, Pune - 411009, Maharashtra.

CIN: L30107PN1996PLC016718, Website: www.softtech-engr.com

Standalone Cash Flow Statement

			Amount in ₹
Particulars		Year ended31 March 2020	Year ended31 March 2019
		(Audited)	(Audited)
Cash flow from operating activities
Profit before tax		108,548,797	109,245,625
Adjustments for:
Depreciation and amortisation expense		37,194,677	40,419,359
Loss on sale of equipment		-	39,190
Unrealised gain on foreign currency transactions and translations (net)		(325,838)	(575,486)
Employees' stock option compensation		379,762	1,094,253
Finance costs		16,773,138	16,066,188
Bad debts and advances written off		6,156,131	12,023,608
(Reversal of)/provision for doubtful debts		(1,197,174)	597,239
Dividend income		(2,015,388)	(1,987,818)
Interest income on deposits		(5,375,990)	(3,458,773)
Operating profit before working capital changes		160,138,115	173,463,385
Changes in working capital:
Increase/(decrease) in trade payables, liabilities and provisions		31,232,457	(74,722,038)
(Increase)/decrease in trade receivables		(176,266,372)	17,754,065
Increase in loans and advances and other assets		(47,609,902)	(31,377,009)
Cash (used in)/generated from operations		(32,505,702)	85,118,403
Direct taxes paid (net)		(19,048,985)	(44,192,579)
Net cash (used in)/ generated from operating activities	(A)	(51,554,687)	40,925,824
Cash flow from investing activities
Purchase of property, plant and equipment		(67,763,880)	(54,941,230)
(including intangible assets and intangible assets under development)
Investments in subsidiary companies		(11,559,706)	(5,492,574)
Purchase of mutual fund units		(110,000,000)	(108,965,141)
Proceeds from sale of mutual fund units		133,744,588	-
Fixed deposits including balances in escrow account placed		(12,727,472)	(26,047,376)
Interest received		1,035,297	2,444,457
Dividend received		2,015,388	1,987,818
Net cash used in investing activities	(B)	(65,255,785)	(191,014,046)
Cash flow from financing activities
Proceeds from shares issued (net of share issue expenses)		-	164,213,143
Share application money pending allotment		220,980	-
Repayment of long-term borrowings		(36,004,543)	(55,537,733)
Proceeds from long-term borrowings		121,500,000	36,918,000
Dividend paid (including dividend distribution tax paid)		(5,659,069)	(5,689,556)
Proceeds from short-term borrowings (net)		37,937,474	25,617,022
Interest paid		(13,941,836)	(15,184,171)
Net cash generated from financing activities	(C)	104,053,006	150,336,705
Net (decrease)/ increase in cash and cash equivalents	(A+B+C)	(12,757,466)	248,483
Cash and cash equivalents at the beginning of the year		12,929,887	12,681,404
Cash and cash equivalents at the end of the year		172,421	12,929,887
Cash and cash equivalents comprise of :
Cash on hand		5,794	5,120
Balances with banks (in current accounts)		166,627	12,924,767
		172,421	12,929,887

Notes:

• 1 The financial results are prepared in accordance with the Accounting Standards prescribed under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 (as amended) and other recognised accounting practices and policies, as applicable.
• 2 The above results were reviewed by the Audit Committee and were thereafter approved by the Board of Directors at their respective meetings held on 10 July 2020. There are no qualifications in the audit report issued for the year ended 31 March 2020.
• 3 The Company operates in a single reportable business segment, which is business consulting and software implementation and related support activities. Further, the Company operates primarily in India and there is no other significant geographical segment. Accordingly, no segment information has been submitted as a part of these financial results.
• 4 Figures for the half year ended 31 March 2020 and 31 March 2019 as reported in these financial results, are the balancing figures between audited figures in respect of the full financial years and the published/reviewed half-yearly financial results up to 30 September 2019 and 30 September 2018.
• 5 The Company had made an initial public offering (IPO) of 2,371,200 equity shares of face value ₹ 10 each fully paid up for cash at a price of ₹ 80 per equity share (including share premium of ₹ 70 per equity share) aggregating to ₹ 189,696,000. The aforementioned equity shares were allotted on 9 May 2018. The equity shares of the Company got listed on NSE on 11 May 2018.

The proceeds from IPO were ₹ 189,696,000 and IPO related expenses were ₹ 25,482,857. The utilisation of the net proceeds are as follows:

			(₹ in lakhs)
	Planned as per	Utilisation up to	Balance as at
	Prospectus	31 March 2020	31 March 2020
Product development and enhancement costs	662.40	662.40	-
Funding of the domestic and international product penetration and marketingcosts	598.12	598.12	-
Repayment/pre-payment of certain unsecured borrowings availed by theCompany	203.47	203.47	-
General corporate purposes (excluding transaction costs of IPO)	178.15	178.15	-
	1,642.14	1,642.14	-

6 Estimation uncertainty relating to the global health pandemic - COVID-19

In assessing the recoverability of receivables including unbilled receivables, the Company has considered internal and external information up to the date of these financial statements including economic forecasts. The majority of the customers of the Company are municipal corporations and based on the current indicators of future economic conditions, the Company expects to recover the carrying amount of these assets. The impact of the global health pandemic may be different from the estimate as at the date of these financial results and the Company will closely monitor any material changes to future economic conditions and respond accordingly.

For and on behalf of the Board of Directors

VIJAY SHANTISWARUP GUPTA

Digitally signed by VIJAY SHANTISWARUP GUPTA Date: 2020.07.10 16:01:38 +05'30'

Pune Vijay Gupta

10 July 2020 Managing Director

Walker Chandiok & Co LLP 16th floor, Tower II, Indiabulls Finance Centre, SB Marg, Prabhadevi (W) Mumbai – 400 013 India T +91 22 6626 2699 F +91 22 6626 2601

Independent Auditor's Report on Consolidated Annual 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 SoftTech Engineers Limited

Opinion

• 1. We have audited the accompanying consolidated annual financial results ('the Statement') of SoftTech Engineers Limited ('the Holding Company') and its subsidiaries (the Holding Company and its subsidiaries together referred to as 'the Group') for the year ended 31 March 2020, 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) ('Listing Regulations'), including relevant circulars issued by the SEBI from time to time.
• 1. In our opinion and to the best of our information and according to the explanations given to us, the Statement:
  • (i) includes the annual financial results of the following entities;

SoftTech Engineers Inc., SoftTech Finland OY, SoftTech Government Solutions Inc.

• (ii) presents financial results in accordance with the requirements of Regulation 33 of the Listing Regulations, and;
• (iii) gives a true and fair view in conformity with the applicable Accounting Standards ('AS') prescribed under Section 133 of the Companies Act, 2013 ('the Act'). read with relevant rules issued thereunder, and other accounting principles generally accepted in India, of the consolidated net profit after tax and other financial information of the Group, for the year ended 31 March 2020.

Basis for Opinion

1. We conducted our audit in accordance with the Standards on Auditing ('SAs') specified under section 143(10) of the Act. Our responsibilities under those standards are further described in the' Auditor's Responsibilities for the Audit of the Statement ' 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 ('the ICAI') 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.

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Chartered Accountants

Offices in Bengaluru, Chandigarh, Chennai, Gurugram, Hyderabad, Kochi, Kolkata, Mumbai, New Delhi, Noida and Pune

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

Responsibilities of Management and Those Charged with Governance for the Statement

• 1. The Statement, which is the responsibility of the Holding Company's management and has been approved by the Holding Company's Board of Directors, has been prepared on the basis of the consolidated annual audited financial statements. The Holding Company's Board of Directors is responsible for the preparation and presentation of the Statement that gives a true and fair view of the consolidated net profit after tax and other financial information of the Group in accordance with the accounting principles generally accepted in India, including the AS 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 Holding Company's Board of Directors is also responsible for ensuring accuracy of records including financial information considered necessary for the preparation of the Statement. Further, in terms of the provisions of the Act, the respective Board of Directors of the companies included in the Group, covered under the Act, 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 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 financial results, that give a true and fair view and are free from material misstatement, whether due to fraud or error. These financial results have been used for the purpose of preparation of the Statement by the Directors of the Holding Company, as aforesaid.
• 1. In preparing the Statement, the respective Board 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 Board of Directors/ management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.
• 1. The respective Board of Directors/ management of the companies included in the Group, are responsible for overseeing the financial reporting process of the companies included in the Group.

Auditor's Responsibilities for the Audit of the Statement

• 1. 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 Standards on Auditing, specified under section 143(10) of the Act, 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 this Statement.
• 1. As part of an audit in accordance with the Standards on Auditing, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
  • x 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.

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

• x 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 Holding Company has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such controls.
• x Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the management.
• x Conclude on the appropriateness of management's 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.
• x 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.
• x Obtain sufficient appropriate audit evidence regarding the financial results/ financial information/ financial statements of the entities within the Group, to express an opinion on the Statement. We are responsible for the direction, supervision and performance of the audit of financial information of such entities included in the Statement, of which we are the independent auditors. For the other entities included in the Statement, which have been audited by the other auditors, such other auditors remain responsible for the direction, supervision and performance of the audits carried out by them. We remain solely responsible for our audit opinion.
• 1. We communicate with those charged with governance of the Holding Company, 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.
• 1. 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.
• 1. We also performed procedures in accordance with SEBI Circular CIR/CFD/CMD1/44/2019 dated 29 March 2019, issued by the SEBI under Regulation 33 (8) of the Listing Regulations, to the extent applicable.

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

Other Matter

1. The Statement includes the annual financial information of three subsidiaries, which have not been reviewed/audited, whose annual financial information (before intercompany elimination) reflect total assets of ₹ 13,575,092 as at 31 March 2020, total revenues of ₹ Nil, total net loss after tax of ₹ 12,135,438 and cash flow (net) of ₹ 355,406 for the year then ended, as considered in the Statement. These financial information have been furnished to us by the Holding Company's management. Our opinion, in so far as it relates to the amounts and disclosures included in respect of aforesaid subsidiaries is based solely on such unaudited financial information. In our opinion, and according to the information and explanations given to us by the management, these financial information/ financial results are not material to the Group.

Our opinion is not modified in respect of this matter with respect to our reliance on the financial information/ results certified by the Board of Directors.

1. The Statement includes the consolidated financial results for the half year ended 31 March 2020, being the balancing figures between the audited consolidated figures in respect of the full financial year and the published unaudited year-to-date consolidated figures up to the half year of the current financial year, which were subject to limited review by us.

For Walker Chandiok & Co LLP

Chartered Accountants Firm Registration No:001076N/N500013

BHARAT KOCHU SHETTY

Digitally signed by BHARAT KOCHU SHETTY Date: 2020.07.10 18:13:53 +05'30'

Bharat Shetty Partner Membership No:106815

UDIN No:20106815AAAABY7409

Place: Mumbai Date: 10 July 2020 SoftTech Engineers Limited CIN: L30107PN1996PLC016718, Website: www.softtech-engr.com Registered Office: The Pentagon, Unit No. 5A, Near Satara Road Telephone Exchange, Shahu College Road, Parvati, Pune - 411009, Maharashtra.

Statement of Consolidated Financial Results for the year ended 31 March 2020

	Amount in ₹
Sr.	Particulars		Half-year ended		Year ended
no.		31 March 2020	30 September	31 March 2019	31 March 2020	31 March 2019
		(Unaudited)	2019	(Unudited)	(Audited)	(Audited)
		(refer note 4	(Unaudited)	(refer note 4
		below)		below)
1	Income
	(a) Revenue from operations	309,422,004	270,048,192	331,518,315	579,470,196	627,554,789
	(b) Other income	6,239,094	3,430,153	3,773,700	9,669,247	7,877,011
	Total income	315,661,098	273,478,345	335,292,015	589,139,443	635,431,800
2	Expenses
	(a) Purchases of stock-in-trade	34,975,107	27,215,252	30,422,870	62,190,359	49,229,196
	(b) Employee benefits expense	54,958,392	56,688,864	50,625,897	111,647,256	99,998,820
	(c) Finance costs	9,799,552	7,121,966	8,086,374	16,921,518	16,837,085
	(d) Depreciation and amortisation expense	18,596,859	18,597,818	20,386,992	37,194,677	40,419,359
	(e) Professional fees for technical consultants	79,057,794	81,000,520	116,585,772	160,058,314	223,798,699
	(f) Other expenses	46,973,449	57,740,509	51,371,407	104,713,958	99,590,917
	Total expenses	244,361,153	248,364,929	277,479,312	492,726,082	529,874,076
3	Profit before tax (1 - 2)	71,299,945	25,113,416	57,812,703	96,413,361	105,557,724
4	Tax expense
	Current tax	21,139,152	11,860,848	19,680,000	33,000,000	35,280,000
	Deferred tax credit	(173,779)	(1,342,845)	(1,572,008)	(1,516,624)	(3,969,167)
5	Net profit for the period/year (3 - 4)	50,334,572	14,595,413	39,704,711	64,929,985	74,246,891
6	Net profit/(loss) attributable to:
	- Equity Shareholders of the Company	50,287,026	14,621,474	39,718,693	64,908,500	74,260,873
	- Minority Interest	47,546	(26,061)	(13,982)	21,485	(13,982)
7	Paid-up equity share capital	94,224,760	94,224,760	94,224,760	94,224,760	94,224,760
	(Face value per share, ₹10 each)
8	Reserves (excluding revaluation reserves ₹ Nil)	-	-	-	573,242,727	513,634,333
9	Earnings per share (of ₹10 each)
	(not annualised):
	(a) Basic	5.34	1.55	4.33	6.89	8.10
	(b) Diluted	5.30	1.54	4.30	6.84	8.04

SoftTech Engineers Limited Statement of Consolidated Assets and Liabilities

			Amount in ₹
		As at	As at
Sr.	Particulars	31 March 2020	31 March 2019
no.
		(Audited)	(Audited)
	A Equity and liabilities
1	Shareholders' funds
	(a) Share capital	94,224,760	94,224,760
	(b) Reserves and surplus	573,242,727	513,634,333
		667,467,487	607,859,093
2	Share application money pending allotment	220,980	-
3	Minority interest	74,166	34,137
4	Non-current liabilities
	(a) Long-term borrowings	167,233,425	56,734,747
	(b) Other long-term liabilities	50,000	50,000
	(c) Long-term provisions	8,870,092	6,463,991
		176,153,517	63,248,738
4	Current liabilities
	(a) Short-term borrowings	108,630,172	70,692,697
	(b) Trade payables
	Total outstanding dues of micro enterprises and small enterprises	1,096,604	224,112
	Total outstanding dues of creditors other than micro enterprises and small enterprises	19,983,923	17,368,021
	(c) Other current liabilities	90,072,595	87,733,859
	(d) Short-term provisions	9,391,121	3,020,672
		229,174,415	179,039,361
	Total	1,073,090,565	850,181,329
	B Assets
1	Non-current assets
	(a) Property, plant and equipment	9,137,325	10,865,912
	(b) Intangible assets	100,176,541	77,377,080
	(c) Intangible assets under development	60,577,178	51,078,849
	(d) Non-current investments	379,800	379,800
	(e) Deferred tax assets (net)	13,119,791	11,603,167
	(f) Long-term loans and advances	30,896,539	19,251,651
	(g) Other non-current assets	96,738,365	81,670,934
		311,025,539	252,227,393
2	Current assets
	(a) Current investments	85,220,553	108,965,141
	(b) Trade receivables	359,860,947	188,227,694
	(c) Cash and bank balances	2,510,865	13,884,093
	(d) Short-term loans and advances	6,841,827	14,059,549
	(e) Other current assets	307,630,834	272,817,459
		762,065,026	597,953,936
	Total	1,073,090,565	850,181,329

SoftTech Engineers Limited CIN: L30107PN1996PLC016718, Website: www.softtech-engr.com Registered Office: The Pentagon, Unit No. 5A, Near Satara Road Telephone Exchange, Shahu College Road, Parvati, Pune - 411009, Maharashtra.

Consolidated Cash Flow Statement for the year ended 31 March 2020

			Amount in ₹
Particulars		Year ended	Year ended
		31 March 2020	31 March 2019
		(Audited)	(Audited)
Cash flow from operating activities
Profit before tax		96,413,361	105,557,724
Adjustments for:
Depreciation and amortisation expense		37,194,677	40,419,359
Loss on sale of equipment		-	39,190
Unrealised gain on foreign currency transactions and translations (net)		(448,259)	(438,972)
Employees' stock option compensation		379,762	1,094,253
Finance costs		16,773,138	16,066,188
Bad debts and advances written off		6,156,131	12,023,608
(Reversal of)/provision for doubtful debts		(1,197,174)	597,239
Dividend income		(2,015,388)	(1,987,818)
Interest income on deposits		(5,375,990)	(3,458,773)
Operating profit before working capital changes		147,880,258	169,911,998
Changes in working capital:
Increase/(decrease) in trade payables, liabilities and provisions		32,589,915	(75,751,892)
(Increase)/decrease in trade receivables		(176,266,372)	17,754,065
Increase in loans and advances and other assets		(47,928,025)	(31,396,901)
Cash (used in)/generated from operations		(43,724,224)	80,517,270
Direct taxes paid (net)		(19,048,984)	(44,192,579)
Net cash (used in)/ generated from operating activities	(A)	(62,773,208)	36,324,691
Cash flow from investing activities
Purchase of property, plant and equipment		(67,763,880)	(54,941,230)
(including intangible assets and intangible assets under development)
Purchase of mutual fund units		(110,000,000)	(108,965,141)
Proceeds from sale of mutual fund units		133,744,588	-
Fixed deposits (including balances in escrow account) placed		(12,727,472)	(26,047,376)
Interest received		1,035,297	2,444,457
Dividend received
		2,015,388	1,987,818
Net cash used in investing activities	(B)	(53,696,079)	(185,521,472)
Cash flow from financing activities
Proceeds from shares issued (net of Share issue expenses)		-	164,213,143
Proceeds from shares issued to minority interest		14,222	48,119
Share application money pending allotment		220,980	-
Repayment of long-term borrowings		(36,004,543)	(55,537,733)
Proceeds from long-term borrowings		121,500,000	36,918,000
Dividend paid (including dividend distribution tax paid)		(5,659,069)	(5,689,556)
Proceeds from short-term borrowings (net)		37,937,474	25,617,022
Interest paid		(13,941,836)	(15,184,171)
Net cash generated from financing activities	(C)	104,067,228	150,384,824
Net (decrease) / increase in cash and cash equivalents	(A+B+C)	(12,402,059)	1,188,043
Cash and cash equivalents at the beginning of the year		13,869,447	12,681,404
Cash and cash equivalents at the end of the year		1,467,388	13,869,447
Cash and cash equivalents comprise of :
Cash on hand		5,794	12,037
Balances with banks (in current accounts)		1,461,594	13,857,410
		1,467,388	13,869,447

SoftTech Engineers Limited Statement of Consolidated Assets and Liabilities

			Amount in ₹
		As at	As at
Sr.	Particulars	31 March 2020	31 March 2019
no.
		(Audited)	(Audited)
	A Equity and liabilities
1	Shareholders' funds
	(a) Share capital	94,224,760	94,224,760
	(b) Reserves and surplus	573,242,727	513,634,333
		667,467,487	607,859,093
2	Share application money pending allotment	220,980	-
3	Minority interest	74,166	34,137
4	Non-current liabilities
	(a) Long-term borrowings	167,233,425	56,734,747
	(b) Other long-term liabilities	50,000	50,000
	(c) Long-term provisions	8,870,092	6,463,991
		176,153,517	63,248,738
4	Current liabilities
	(a) Short-term borrowings	108,630,172	70,692,697
	(b) Trade payables
	Total outstanding dues of micro enterprises and small enterprises	1,096,604	224,112
	Total outstanding dues of creditors other than micro enterprises and small enterprises	19,983,923	17,368,021
	(c) Other current liabilities	90,072,595	87,733,859
	(d) Short-term provisions	9,391,121	3,020,672
		229,174,415	179,039,361
	Total	1,073,090,565	850,181,329
	B Assets
1	Non-current assets
	(a) Property, plant and equipment	9,137,325	10,865,912
	(b) Intangible assets	100,176,541	77,377,080
	(c) Intangible assets under development	60,577,178	51,078,849
	(d) Non-current investments	379,800	379,800
	(e) Deferred tax assets (net)	13,119,791	11,603,167
	(f) Long-term loans and advances	30,896,539	19,251,651
	(g) Other non-current assets	96,738,365	81,670,934
		311,025,539	252,227,393
2	Current assets
	(a) Current investments	85,220,553	108,965,141
	(b) Trade receivables	359,860,947	188,227,694
	(c) Cash and bank balances	2,510,865	13,884,093
	(d) Short-term loans and advances	6,841,827	14,059,549
	(e) Other current assets	307,630,834	272,817,459
		762,065,026	597,953,936
	Total	1,073,090,565	850,181,329

Notes:

• 1 The financial results are prepared in accordance with the Accounting Standards prescribed under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 (as amended) and other recognised accounting practices and policies, as applicable.
• 2 The above results were reviewed by the Audit Committee and were thereafter approved by the Board of Directors at their respective meetings held on 10 July 2020. There are no qualifications in the audit report issued for the year ended 31 March 2020.
• 3 The Group operates in a single reportable business segment, which is business consulting and software implementation and related support activities. Further, the Group operates primarily in India and there is no other significant geographical segment. Accordingly, no segment information has been submitted as a part of these financial results.
• 4 Figures for the half year ended 31 March 2020 and 31 March 2019 as reported in these financial results, are the balancing figures between audited figures in respect of the full financial years and the published/reviewed half-yearly financial results up to 30 September 2019 and 30 September 2018.
• 5 The Company had made an initial public offering (IPO) of 2,371,200 equity shares of face value ₹ 10 each fully paid up for cash at a price of ₹ 80 per equity share (including share premium of ₹ 70 per equity share) aggregating to ₹ 189,696,000. The aforementioned equity shares were allotted on 9 May 2018. The equity shares of the Company got listed on NSE on 11 May 2018.

The proceeds from IPO were ₹ 189,696,000 and IPO related expenses were ₹ 25,482,857. The utilisation of the net proceeds are as follows:

			(₹ in lakhs)
	Planned as perProspectus	Utilisation up to31 March 2020	Balance as atMarch 31, 2020
Product development and enhancement costs	662.40	662.40	-
Funding of the domestic and international product penetration andmarketing costs	598.12	598.12	-
Repayment/Pre-payment of certain unsecured borrowings availedby the Company	203.47	203.47	-
General corporate purposes (excluding transaction costs of IPO)	178.15	178.15	-
	1,642.14	1,642.14	-

6 Estimation uncertainty relating to the global health pandemic - COVID-19

In assessing the recoverability of receivables including unbilled receivables, the Group has considered internal and external information up to the date of these financial statements including economic forecasts. The majority of the customers of the Group are municipal corporations and based on the current indicators of future economic conditions, the Group expects to recover the carrying amount of these assets. The impact of the global health pandemic may be different from the estimate as at the date of these financial statements and the Group will closely monitor any material changes to future economic conditions and respond accordingly.

For and on behalf of the Board of Directors

VIJAY SHANTISWARUP GUPTA

Digitally signed by VIJAY SHANTISWARUP GUPTA Date: 2020.07.10 16:05:03 +05'30'

Pune Vijay Gupta 10 July 2020 Managing Director

Date: 10th July, 2020

To, National Stock Exchange of India Limited Bandra-Kurla Complex Bandra (East) Mumbai – 400 051

Dear Sir/ Madam,

Scrip Code: SOFTTECH

Subject: Declaration Pursuant to Regulation 33(3)(d) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended

Pursuant to Regulation 33(3)(d) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended), we hereby declare and confirm that the Statutory auditors of the Company, M/s. Walker Chandiok & Co LLP, Chartered Accountants have issued the Audit Report with unmodified opinion, in respect of Financial Results of the Company for the financial year ended 31st March, 2020.

We request you to take above information on your record.

Thanking You,

For SoftTech Engineers Limited

Vijay Gupta Chairman and Managing Director

Name of listed entity	SoftTech Engineers Limited
Mode of Fund Raising	Initial Public Offer(IPO)
Date of Raising Funds	9th May, 2018
Amount Raised	Rs. 1896.96 Lakh
Report filed for Half year ended	31st March,2020
Monitoring Agency	NA
Monitoring Agency Name, if applicable	NA
Is there a Deviation / Variation in use of funds raised	No
If yes, whether the same is pursuant to change in terms of a
contract or objects, which was approved by the shareholders	NA
If Yes, Date of shareholder Approval	NA
Explanation for the Deviation / Variation	NA
Comments of the Audit Committee after review	Noted
Comments of the auditors, if any	No
If yes, whether the same is pursuant to change in terms of a
contract or objects, which was approved by the shareholders	No
If Yes, Date of shareholder Approval	NA
Explanation for the Deviation / Variation	NA

Statement of Deviation / Variation in utilization of funds raised

Objects for which funds have been raised and where there has been a deviation, in the following table

The proceeds from IPO were ₹ 189,696,000 and IPO related expenses were ₹ 25,482,857. The utilization of the net proceeds are as follows:

						(Rs. In lakhs)
Original Object	ModifiedObject, ifany	OriginalAllocation	Modifiedallocation,if any	FundsUtilized(Rs.)	Amount ofDeviation/Variation for thequarteraccording toapplicable object	Remarks if any
Productdevelopment andenhancement costs	NA	662.40	NA	662.40	Nil	-
Funding of thedomestic andinternationalproduct penetrationand -marketing costs	NA	598.12	NA	598.12	Nil	-
Repayment/Prepayment of certainunsecuredborrowings availedby the Company	NA	203.47	NA	203.47	Nil	-
General corporatepurposes and IPOrelated expenses(excluding	NA	178.15	NA	178.15	Nil	-

Original Object	ModifiedObject, ifany	OriginalAllocation	Modifiedallocation,if any	FundsUtilized(Rs.)	Amount ofDeviation/Variation for thequarteraccording toapplicable object	Remarks if any
transaction costs of
IPO)
Total		1642.14		1642.14

Vijay Gupta Managing Director