SoftTech Engineers Limited — Annual Report 2021

Jun 25, 2021

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

25[th] June, 2021

Scrip Code: SOFTTECH

SUBJET: Outcome of Board Meeting held on 25[th] June, 2021 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. 25[th] June, 2021 which commenced at 2.00 PM and concluded at 5.00 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 31[st] March, 2021.

2. The Board of Directors approved incorporation of a wholly owned subsidiary Company to carry AmpliNXT program launched by the Company which is for incubation and acceleration of startups.

3. The Board of Directors considered and approved appointment of Mr. Kamal Agrawal as CFO(Chief Financial Officer) of the Company with effect from 28[th] June, 2021

Details of appointment:

Date of appointment: with effect from 28[th] June, 2021

Brief profile: Mr. Kamal Agrawal is having a vast experience in Finance, Accounts, Audit, and Compliance of more than two decades. He has worked extensively in industry pertaining to Steel, Cement, IT & ITES, IT Infrastructure, Mass Housing both in India and Overseas. Qualification-wise he has done, CA, CS, CWA & DipIFRS and has been rank holder throughout his career.

1. The Board of Directors approved to increase investment limit in SoftTech Engineers Inc. subsidiary based in USA upto US$ 2,000,000(Two Million USD) in one or more tranches by way of equity, loan or such other mode as may be decided by the Management subject to applicable laws.

Kindly take the same on record.

For SoftTech Engineers Limited

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AISHWARYA PATWARDHAN COMPANY SECRETARY

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Walker Chandiok & Co LLP 3rd floor, Unit No. 309 to 312, West Wing, Nyati Unitree Nagar Road, Yerwada, Pune - 411006 Maharashtra, India T +91 20 6744 8888 F +91 20 6744 8899

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 2021 , 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.

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

3. (i) presents financial results in accordance with the requirements of Regulation 33 of the Listing Regulations, and;

4. (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 2021.

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.

Emphasis of Matter

1. We draw attention to Note 5 to the accompanying results, which describes the effects of uncertainties relating to ‘COVID-19’ pandemic outbreak on the Company’s operations and management’s evaluation of its impact on the accompanying results as at 31 March 2021, the extent of which is significantly dependent on future developments as they evolve. Our conclusion is not modified in respect of this matter.

Page 1 of 3

Chartered Accountants

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

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

SoftTech Engineers Limited

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

2. 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.

3. 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.

2. 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:

3. 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.

4. 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.

5. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the management.

Page 2 of 3

Chartered Accountants

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

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

SoftTech Engineers Limited

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)

• 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.

• 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

1. The Statement includes the financial results for the half year ended 31 March 2021, 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 2020, which were subject to limited review by us.

For Walker Chandiok & Co LLP Chartered Accountants Firm Registration No:001076N/N500013

Digitally signed by SHASHI SHASHI TADWALKAR TADWALKAR Date: 2021.06.25 16:26:46 +05'30'

Shashi Tadwalkar Partner Membership No:101797

UDIN:21101797AAAABG1402

Place: Pune Date: 25 June 2021

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Chartered Accountants

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

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

SoftTech Engineers Limited

Registered Office: SoftTech Towers, 1-Baner, Opp. Royal Enfield Showroom, Baner Road, Pune-411045

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

Statement of Standalone Financial Results for the year ended 31 March 2021

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Amount in ₹
Sr. Particulars Half-year ended Year ended
no. 31 March 2021 30 September 31 March 2020 31 March 2021 31 March 2020
(Unudited) 2020 (Unudited) (Audited) (Audited)
(refer note 4 (Unaudited) (refer note 4
below) below)
1 Income
(a) Revenue from operations 222,493,636 193,242,001 309,422,004 415,735,637 579,470,196
(b) Other income 6,644,123 3,318,962 6,069,282 9,963,085 9,542,788
Total income 229,137,759 196,560,963 315,491,286 425,698,722 589,012,984
2 Expenses
(a) Purchases of software products 32,129,387 15,408,489 34,975,107 47,537,876 62,190,359
(b) Employee benefits expense 52,214,371 48,023,109 54,952,757 100,237,480 110,902,823
(c) Finance costs 12,327,338 11,429,362 9,799,552 23,756,700 16,921,518
(d) Depreciation and amortisation expense 27,336,085 21,627,970 18,596,859 48,964,055 37,194,677
(e) Professional fees for technical consultants 61,243,386 32,016,949 73,586,815 93,260,335 160,475,335
(f) Other expenses 28,960,349 28,155,688 50,643,722 57,116,037 92,779,475
Total expenses 214,210,917 156,661,567 242,554,812 370,872,484 480,464,187
3 Profit before tax (1 - 2) 14,926,842 39,899,396 72,936,474 54,826,238 108,548,797
4 Tax expense
Current tax 1,455,000 11,545,000 21,139,152 13,000,000 33,000,000
Deferred tax charge/(credit) 3,209,270 (665,466) (173,779) 2,543,804 (1,516,624)
5 Net profit for the period/year (3 - 4) 10,262,571 29,019,862 51,971,101 39,282,434 77,065,421
6 Paid-up equity share capital 94,666,720 94,666,720 94,224,760 94,666,720 94,224,760
(Face value per share, ₹10 each)
7 Reserves (excluding revaluation reserves ₹ Nil) - - - 628,296,641 589,073,567
8 Earnings per share (of ₹10 each)
(not annualised):
(a) Basic 1.08 3.07 5.52 4.15 8.18
(b) Diluted 1.08 3.06 5.48 4.14 8.12
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SoftTech Engineers Limited

Statement of Standalone Assets and Liabilities

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Amount in ₹
As at As at
Sr.
Particulars 31 March 2021 31 March 2020
no.
(Audited) (Audited)
A Equity and liabilities
1 Shareholders’ funds
(a) Share capital 94,666,720 94,224,760
(b) Reserves and surplus 628,296,641 589,073,567
722,963,361 683,298,327
2 Share application money pending allotment - 220,980
3 Non-current liabilities
(a) Long-term borrowings 196,472,232 167,233,425
(b) Other long-term liabilities 1,310,590 50,000
(c) Long-term provisions 11,057,858 8,870,092
208,840,680 176,153,517
4 Current liabilities
(a) Short-term borrowings 105,740,175 108,630,172
(b) Trade payables
Trade Payables - outstanding dues to micro enterprises and small enterprises 687,697 1,096,604
Trade Payables - outstanding dues to other than micro enterprises and small enterprises 91,970,359 58,840,565
(c) Other current liabilities 49,858,480 51,162,061
(d) Short-term provisions 5,666,839 9,391,121
253,923,550 229,120,523
Total 1,185,727,591 1,088,793,347
B Assets
1 Non-current assets
(a) Property, plant and equipment 41,274,839 9,137,325
(b) Intangible assets 158,507,601 100,176,541
(c) Intangible assets under development 30,810,039 60,577,178
(d) Non-current investments 30,193,335 17,432,080
(e) Deferred tax assets (net) 10,575,987 13,119,791
(f) Long-term loans and advances 47,196,926 30,945,663
(g) Other non-current assets 90,093,300 96,738,365
408,652,027 328,126,943
2 Current assets
(a) Current investments 49,866,746 85,220,553
(b) Trade receivables 333,676,604 359,860,947
(c) Cash and bank balances 1,078,092 1,215,898
(d) Short-term loans and advances 10,371,124 6,738,172
(e) Other current assets 382,082,998 307,630,834
777,075,564 760,666,404
Total 1,185,727,591 1,088,793,347
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SoftTech Engineers Limited

Registered Office: SoftTech Towers, 1-Baner, Opp. Royal Enfield Showroom, Baner Road, Pune-411045

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

Standalone Cash Flow Statement

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Amount in ₹
Particulars Year ended Year ended
31 March 2021 31 March 2020
(Audited) (Audited)
Cash flow from operating activities
Profit before tax 54,826,238 108,548,797
Adjustments for:
Depreciation and Amortisation Expense 48,964,055 37,194,677
-
Unrealised gain on foreign currency transactions and translations (net) (113,895)
Employees' stock option compensation 161,620 (325,838)
Finance costs 23,501,433 379,762
Bad debts and advances written off 3,689,400 16,773,138
(Reversal of)/Provision for doubtful debts (1,931,702) 6,156,131
Loss on Sale of Equipment 435,495 (1,197,174)
Dividend income (2,146,193) (2,015,388)
Interest income on deposits (5,096,248) (5,375,990)
Operating profit before working capital changes 122,290,203 160,138,115
Changes in working capital:
Increase in trade payables, liabilities and provisions 15,376,350 31,232,456
Decrease/(increase) in trade receivables 24,540,540 (176,266,372)
Increase in loans and advances and other assets (77,953,355) (47,609,902)
Cash (used in)/generated from operations 84,253,738 (32,505,703)
Direct taxes paid (net) (31,953,394) (19,048,985)
Net cash (used in)/ generated from operating activities (A) 52,300,344 (51,554,688)
Cash flow from investing activities
Purchase of property, plant and equipment (104,420,379) (67,763,880)
(including intangible assets and intangible assets under development)
Investments in subsidiary companies (12,761,255) (11,559,706)
Purchase of mutual fund units - (110,000,000)
Proceeds from sale of mutual fund units 35,353,807 133,744,588
Fixed deposits including balances in escrow account placed 3,358,523 (12,727,472)
Interest received 7,414,537 1,035,297
Dividend received 2,146,193 2,015,388
Net cash used in investing activities (B) (68,908,574) (65,255,785)
Cash flow from financing activities
Share application money pending allotment - 220,980
Repayment of long-term borrowings (10,801,322) (36,004,543)
Proceeds from long-term borrowings 53,261,428 121,500,000
-
Dividend paid (including dividend distribution tax paid) (5,659,068)
Proceeds from short-term borrowings (net) (2,889,997) 37,937,474
Interest paid (22,063,193) (13,941,836)
Net cash generated from financing activities (C) 17,506,916 104,053,007
Net (decrease)/ increase in cash and cash equivalents (A+B+C) 898,686 (12,757,466)
Cash and cash equivalents at the beginning of the year 172,421 12,929,887
Cash and cash equivalents at the end of the year 1,071,107 172,421
Cash and cash equivalents comprise of :
Cash on hand 30,794 5,794
Balances with banks (in current accounts) 1,040,313 166,627
1,071,107 172,421
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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 25 June 2021. There are no qualifications in the audit report issued for the year ended 31 March 2021.

• 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 2021 and 31 March 2020 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 2020 and 30 September 2019.

• 5 Estimation uncertainty relating to the global health pandemic - COVID-19 In March 2020, the World Health Organisations declared Covid-19 a global pandemic. Consequent to this, Government of India declared a nations wide lockdown, which has impacted normal business operations of the Company. In preparation of these financial results, the Company has taken into consideration internal and external sources of information to assess possible impacts of the pandemic, including but not limited to assessment of liquidity, assessment of recoverable and carrying value of certain assets such as property, plant and equipment, intangible assets, impact on revenues and receivables including unbilled revenue. Majority of customer base of the company are governmental authorities and due to delay in sanctioning new proposals, revenue from operations represents the declining trend post imposition of lockdown. The impact of Covid-19 pandemic on the overall economic environment being uncertain may affect the underlying assumptions and estimates used to prepare Company’s financial results, which may differ from impact considered as the date of approval of these financial results. Based on current indicators, the company has sufficient liquidity and it expects to recover the carrying value of its assets as stated in Statement of assets and liabilities. The Company has resumed its business activities from June 2020, in line with the guidelines issued by the Government authorities and has taken steps to strengthen its liquidity position and initiated cost restructuring exercise. The Company will continue to monitor any material changes to future economic conditions.

For and on behalf of the Board of Directors

VIJAY Digitally signed by VIJAY SHANTISWARUP SHANTISWA GUPTA Date: 2021.06.25 RUP GUPTA 15:46:30 +05'30'

Pune

25 June 2021

Vijay Gupta

Managing Director

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Walker Chandiok & Co LLP 3rd floor, Unit No. 309 to 312, West Wing, Nyati Unitree Nagar Road, Yerwada, Pune - 411006 Maharashtra, India T +91 20 6744 8888 F +91 20 6744 8899

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 2021, 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.

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

3. (i) includes the annual financial results of the following entities; SoftTech Engineers Inc., SoftTech Finland OY, SoftTech Government Solutions Inc

4. (ii) presents financial results in accordance with the requirements of Regulation 33 of the Listing Regulations, and;

5. (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 2021.

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.

Page 1 of 4

Chartered Accountants

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

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

SoftTech Engineers Limited 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)

Emphasis of Matter

1. We draw attention to Note 5 to the accompanying results, which describes the effects of uncertainties relating to ‘COVID-19’ pandemic outbreak on the Company’s operations and management’s evaluation of its impact on the accompanying results as at 31 March 2021, the extent of which is significantly dependent on future developments as they evolve. Our conclusion is not modified in respect of this matter.

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.

2. 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.

3. 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.

2. 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:

3. 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.

Page 2 of 4

Chartered Accountants

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

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

SoftTech Engineers Limited 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)

• 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.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the management.

• 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.

• 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.

• 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.

• 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.

• 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 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.

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 ₹ 26,913,169 as at 31 March 2021, total revenues of ₹ Nil, total net loss after tax of ₹ 11,911,180 and cash flow (net) of ₹ 1,418,384 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.

Page 3 of 4

Chartered Accountants

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

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

SoftTech Engineers Limited 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)

1. The Statement includes the consolidated financial results for the half year ended 31 March 2021, 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

Digitally signed by SHASHI SHASHI TADWALKAR TADWALKAR Date: 2021.06.25 16:27:41 +05'30'

Shashi Tadwalkar Partner Membership No:101797

UDIN:21101797AAAABH2692

Place: Pune Date: 25 June 2021

Page 4 of 4

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

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

SoftTech Engineers Limited

Registered Office: SoftTech Towers, 1-Baner, Opp. Royal Enfield Showroom, Baner Road, Pune-411045

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

Statement of Consolidated Financial Results for the Year Ended 31 March 2021

Amount in ₹

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Sr. Particulars Half-Year ended Year ended
no. 31 March 2021 30 September 31 March 2020 31 March 2021 31 March 2020
(Unaudited) 2020 (Unudited) (Audited) (Audited)
(refer note 4 (Unaudited) (refer note 4
below) below)
1 Income
(a) Revenue from Operations 222,493,636 193,242,001 309,422,004 415,735,637 579,470,196
(b) Other Income 6,743,972 3,232,125 6,239,094 9,976,097 9,669,247
Total Income 229,237,608 196,474,126 315,661,098 425,711,734 589,139,443
2 Expenses
(a) Purchases of software products 32,129,387 15,408,489 34,975,107 47,537,876 62,190,359
(b) Employee benefits expense 57,664,756 50,860,392 54,958,392 108,525,148 111,647,256
(c) Finance costs 12,327,338 11,429,362 9,799,552 23,756,700 16,921,518
(d) Depreciation and amortisation expense 27,336,085 21,627,970 18,596,859 48,964,055 37,194,677
(e) Professional fees for technical consultants 64,340,981 29,587,163 79,057,794 93,928,144 165,946,314
(f) Other expenses 27,380,486 32,858,148 46,973,449 60,238,634 98,825,958
Total Expenses 221,179,033 161,771,524 244,361,153 382,950,557 492,726,082
3 Profit before tax (1 - 2) 8,058,575 34,702,602 71,299,945 42,761,177 96,413,361
4 Tax expense
Current tax 1,455,000 11,545,000 21,139,152 13,000,000 33,000,000
Deferred tax charge / (credit) 3,209,270 (665,466) (173,779) 2,543,804 (1,516,624)
5 Net profit for the period/year (3 - 4) 3,394,305 23,823,068 50,334,572 27,217,373 64,929,985
6 Net profit/(loss) attributable to:
- Equity Shareholders of the Company 3,396,209 23,856,387 50,287,026 27,252,596 64,908,500
- Minority Interest (1,904) (33,319) 47,546 (35,223) 21,485
7 Paid-up equity share capital 94,666,720 94,666,720 94,224,760 94,666,720 94,224,760
(Face value per share, ₹10 each)
8 Reserves (excluding revaluation reserves ₹ Nil) - - - 600,435,963 573,242,727
9 Earnings per share (of ₹10 each)
(not annualised):
(a) Basic 0.36 2.52 5.34 2.88 6.89
(b) Diluted 0.36 2.52 5.30 2.87 6.84
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SoftTech Engineers Limited

Statement of Consolidated Assets and Liabilities

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Amount in ₹
As at As at
Sr.
Particulars 31 March 2021 31 March 2020
no.
(Audited) (Audited)
A Equity and liabilities
1 Shareholders’ funds
(a) Share capital 94,666,720 94,224,760
(b) Reserves and surplus 600,435,963 573,242,727
695,102,683 667,467,487
2 Share application money pending allotment - 220,980
3 Minority interest 27,305 74,166
4 Non-current liabilities
(a) Long-term borrowings 196,472,232 167,233,425
(b) Other long-term liabilities 1,310,590 50,000
(c) Long-term provisions 11,057,858 8,870,092
208,840,680 176,153,517
4 Current liabilities
(a) Short-term borrowings 105,740,176 108,630,172
(b) Trade payables:
Total outstanding dues of micro enterprises and small enterprises 687,697 1,096,604
Total outstanding dues of creditors other than micro enterprises and small enterprises 92,340,286 58,894,457
(c) Other current liabilities 50,062,562 51,162,061
(d) Short-term provisions 5,666,839 9,391,121
254,497,560 229,174,415
Total 1,158,468,228 1,073,090,565
B Assets
1 Non-current assets
(a) Property, plant and equipment 41,274,839 9,137,325
(b) Intangible assets 158,507,601 100,176,541
(c) Intangible assets under development 30,810,034 60,577,178
(d) Non-current investments 379,800 379,800
(e) Deferred tax assets (net) 10,575,987 13,119,791
(f) Long-term loans and advances 47,037,753 30,896,539
(g) Other non-current assets 90,093,300 96,738,365
378,679,314 311,025,539
2 Current assets
(a) Current investments 49,866,746 85,220,553
(b) Trade receivables 333,676,604 359,860,947
(c) Cash and bank balances 3,791,442 2,510,865
(d) Short-term loans and advances 10,371,124 6,841,827
(e) Other current assets 382,082,998 307,630,834
779,788,914 762,065,026
Total 1,158,468,228 1,073,090,565
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SoftTech Engineers Limited

Registered Office: SoftTech Towers, 1-Baner, Opp. Royal Enfield Showroom, Baner Road, Pune-411045

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

Consolidated Cash Flow Statement for the year ended 31 March 2021

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Amount in ₹
Particulars Year ended Year ended
31 March 2021 31 March 2020
(Audited) (Audited)
Cash flow from operating activities
Profit before tax 42,761,177 96,413,361
Adjustments for:
Depreciation and amortisation expense 48,964,055 37,194,677
Loss on sale of equipment 435,495 -
Unrealised gain on foreign currency transactions and translations (net) (113,895) (448,259)
Employees' stock option compensation 161,620 379,762
Finance costs 23,501,433 16,773,138
Bad debts and advances written off 3,689,400 6,156,131
(Reversal of)/provision for doubtful debts (1,931,702) (1,197,174)
Dividend income (2,146,193) (2,015,388)
Interest income on deposits (5,096,248) (5,375,990)
Operating profit before working capital changes 110,225,142 147,880,258
Changes in working capital:
Increase/(decrease) in trade payables, liabilities and provisions 15,896,467 32,589,915
(Increase)/decrease in trade receivables 24,540,540 (176,266,372)
Increase in loans and advances and other assets (77,751,344) (47,928,025)
Cash (used in)/generated from operations 72,910,805 (43,724,224)
Direct taxes paid (net) (31,953,394) (19,048,984)
Net cash (used in)/ generated from operating activities (A) 40,957,411 (62,773,208)
Cash flow from investing activities
Purchase of property, plant and equipment (104,420,370) (67,763,880)
(including intangible assets and intangible assets under development)
Purchase of mutual fund units - (110,000,000)
Proceeds from sale of mutual fund units 35,353,858 133,744,588
Fixed deposits (including balances in escrow account) placed 3,358,523 (12,727,472)
Interest received 7,414,537 1,035,297
Dividend received 2,146,193 2,015,388
Net cash used in investing activities (B) (56,147,259) (53,696,079)
Cash flow from financing activities
Proceeds from shares issued to minority interest - 14,222
Share application money pending allotment - 220,980
Repayment of long-term borrowings (10,801,322) (36,004,543)
Proceeds from long-term borrowings 53,261,428 121,500,000
Dividend paid (including dividend distribution tax paid) - (5,659,069)
Proceeds from short-term borrowings (net) (2,889,996) 37,937,474
Interest paid (22,063,193) (13,941,836)
Net cash generated from financing activities (C) 17,506,917 104,067,228
Net (decrease) / increase in cash and cash equivalents (A+B+C) 2,317,069 (12,402,059)
Cash and cash equivalents at the beginning of the year 1,467,388 13,869,447
Cash and cash equivalents at the end of the year 3,784,457 1,467,388
Cash and cash equivalents comprise of :
Cash on hand 30,794 5,794
Balances with banks (in current accounts) 3,753,663 1,461,594
3,784,457 1,467,388
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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 25 June 2021. There are no qualifications in the audit report issued for the year ended 31 March 2021.

• 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 2021 and 31 March 2020 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 2020 and 30 September 2019.

• 5 Estimation uncertainty relating to the global health pandemic - COVID-19

In March 2020, the World Health Organisations declared Covid-19 a global pandemic. Consequent to this, Government of India declared a nations wide lockdown, which has impacted normal business operations of the Company. In preparation of these financial results, the Company has taken into consideration internal and external sources of information to assess possible impacts of the pandemic, including but not limited to assessment of liquidity, assessment of recoverable and carrying value of certain assets such as property, plant and equipment, intangible assets, impact on revenues and receivables including unbilled revenue. Majority of customer base of the company are governmental authorities and due to delay in sanctioning new proposals, revenue from operations represents the declining trend post imposition of lockdown. The impact of Covid-19 pandemic on the overall economic environment being uncertain may affect the underlying assumptions and estimates used to prepare Company’s financial results, which may differ from impact considered as the date of approval of these financial results. Based on current indicators, the company has sufficient liquidity and it expects to recover the carrying value of its assets as stated in Statement of assets and liabilities. The Company has resumed its business activities from June 2020, in line with the guidelines issued by the Government authorities and has taken steps to strengthen its liquidity position and initiated cost restructuring exercise. The Company will continue to monitor any material changes to future economic conditions.

For and on behalf of the Board of Directors SoftTech Engineers Limited

Place : Pune Date : 25 June 2021

VIJAY Digitally signed by VIJAY SHANTISWARU SHANTISWARUP GUPTA Date: 2021.06.25 P GUPTA 15:45:02 +05'30' Vijay Gupta Managing Director

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Date: 25.06.2021

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(2)(a) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended

Pursuant to Regulation 33(2)(a) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended), we hereby declare and confirm that the financial results do not contain any false or misleading statement or figures and do not omit any material fact which may make the statements or figures contained therein misleading.

We request you to take above information on your record.

Thanking You,

For SoftTech Engineers Limited

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Vijay Gupta

Chairman and Managing Director

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Date: 25.06.2021

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 half year and Financial year ended 31[st] March, 2021.

We request you to take above information on your record.

Thanking You,

For SoftTech Engineers Limited

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Vijay Gupta

Chairman and Managing Director

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