Sonata Software Ltd. — Annual Report 2020

May 11, 2020

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11[th] May, 2020

National Stock Exchange of India Limited Exchange Plaza, Bandra Kurla Complex, Mumbai Kind Attn: Manager, Listing Department Email Id: neaps@nse.co.in Stock Code - SONATSOFTW

BSE Limited P.J. Towers, Dalal Street Mumbai Kind Attn: Manager, Listing Department Email Id: listing.centre@bseindia.com Stock Code - 532221

Dear Sirs,

SUB: Outcome of Board Meeting

REF: Disclosures under Regulation 30 & 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

We write to inform you that at the meeting of the Board of Directors of the Company held today, the Board, inter alia, has-

• a) Considered and adopted Audited financial results (Standalone and Consolidated) for the quarter and financial year ended 31[st] March, 2020. The said results in the prescribed format along with Auditor’s Report are enclosed herewith. A copy of the press release is also enclosed for your reference.

• b) The Independent Auditor’s Report on the Audited Financial Results of the Company (Standalone and Consolidated) for the financial year ended on 31[st] March, 2020 is with unmodified opinion and the declaration is attached.

The meeting commenced at 1.30 p.m. and concluded at 10.00 p.m. Also note that the aforesaid information will be available on our website www.sonata-software.com.

Kindly take the same on record.

Thanking you,

Yours faithfully

For Sonata Software Limited

MANGAL Digitally signed by MANGAL KRISHNARAO KRISHNARAO KULKARNI Date: 2020.05.11 22:08:27 KULKARNI +05'30' Mangal Kulkarni

Company Secretary and Compliance Officer

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Deloitte Haskins & Sells LLP

Chartered Accountants Prestige Trade Tower, Level 19 46, Palace Road, High Grounds Bengaluru - 560 001 Karnataka, India Tel: +91806188 6000 Fax: +91806188 6011

INDEPENDENT AUDITOR’S REPORT ON AUDIT OF ANNUAL STANDALONE FINANCIAL RESULTS AND REVIEW OF QUARTERLY FINANCIAL RESULTS

TO THE BOARD OF DIRECTORS OF SONATA SOFTWARE LIMITED

Opinion and Conclusion

We have (a) audited the Standalone Financial Results for the year ended March 31, 2020 and (b) reviewed the Standalone Financial Results for the quarter ended March 31, 2020 (refer ‘Other Matters’ section below), which were subject to limited review by us, both included in the accompanying “Statement of Standalone Financial Results for the Quarter and Year Ended March 31, 2020” of SONATA SOFTWARE LIMITED (“the Company”), (“the Statement”), being submitted by the Company pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (“the Listing Regulations”).

(a) Opinion on Annual Financial Results

In our opinion and to the best of our information and according to the explanations given to us, the Standalone Financial Results for the year ended March 31, 2020:

• i. is presented in accordance with the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended; and

• ii. gives a true and fair view in conformity with the recognition and measurement principles laid down in the Indian Accounting Standards and other accounting principles generally accepted in India of the net profit and total comprehensive income and other financial information of the Company for the year then ended.

(b) Conclusion on Unaudited Standalone Financial Results for the quarter ended March 31, 2020

With respect to the Standalone Financial Results for the quarter ended March 31, 2020, based on our review conducted as stated in paragraph (b) of Auditor’s Responsibilities section below, nothing has come to our attention that causes us to believe that the Standalone Financial Results for the quarter ended March 31, 2020, prepared in accordance with the recognition and measurement principles laid down in the Indian Accounting Standards and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, including the manner in which it is to be disclosed, or that it contains any material misstatement.

Basis for Opinion on the Audited Standalone Financial Results for the year ended March 31, 2020

We conducted our audit in accordance with the Standards on Auditing (“SAs”) specified under Section 143(10) of the Companies Act, 2013 (“the Act”). Our responsibilities under those Standards are further described in paragraph (a) of Auditor’s Responsibilities section below. 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 Standalone Financial Results for the year ended March 31, 2020 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 ICAI’s Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion.

Regd. Office: lndiabulls Finance Centre, Tower 3, 27 - 32"" Floor, Senapati Bapat Marg. Elphinstone Road (West), Mumbai - 400 013, Maharashtra, India. (LLP Identification No. MB-8737)

Deloitte Haskins & Sells LLP

Management’s Responsibilities for the Statement

This Statement which includes the Standalone Financial Results is the responsibility of the Company’s Board of Directors and has been approved by them for the issuance. The Standalone Financial Results for the year ended March 31, 2020 has been compiled from the related audited standalone financial statements. This responsibility includes the preparation and presentation of the Standalone Financial Results for the quarter and year ended March 31, 2020 that give a true and fair view of the net profit and other comprehensive income and other financial information in accordance with the recognition and measurement principles laid down in the Indian Accounting Standards prescribed under Section 133 of the Act read with relevant rules issued thereunder and other accounting principles generally accepted in India and in compliance with Regulation 33 of the Listing Regulations. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Standalone Financial Results that give a true and fair view and is free from material misstatement, whether due to fraud or error.

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

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

Auditor’s Responsibilities

(a) Audit of the Standalone Financial Results for the year ended March 31, 2020

Our objectives are to obtain reasonable assurance about whether the Standalone Financial Results for the year ended March 31, 2020 as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this Standalone Financial Results.

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

Identify and assess the risks of material misstatement of the Annual Standalone Financial Results, 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.

Deloitte

Haskins & Sells LLP

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Board of Directors.

• Evaluate the appropriateness and reasonableness of disclosures made by the Board of Directors in terms of the requirements specified under Regulation 33 of the Listing Regulations.

• Conclude on the appropriateness of the Board of Directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of the Company 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 Annual Standalone Financial Results, including the disclosures, and whether the Annual Standalone Financial Results represent the underlying transactions and events in a manner that achieves fair presentation.

• Obtain sufficient appropriate audit evidence regarding the Annual Standalone Financial Results of the Company to express an opinion on the Annual Standalone Financial Results.

Materiality is the magnitude of misstatements in the Annual Standalone Financial Results that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the Annual Standalone Financial Results may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the Annual Standalone Financial Results.

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.

(b) Review of the Standalone Financial Results for the quarter ended March 31, 2020

We conducted our review of the Standalone Financial Results for the quarter ended March 31, 2020 in accordance with the Standard on Review Engagements (“SRE”) 2410 ‘Review of Interim Financial Information Performed by the Independent Auditor of the Entity’, issued by the ICAI. A review of interim financial information consists of making inquiries, primarily of the Company’s personnel responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with SAs specified under section 143(10) of the Act and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Deloitte Haskins & Sells LLP

Other Matters

• As stated in Note 2 of the Statement, the figures for the corresponding quarter ended March 31, 2019 are the balancing figures between the annual audited figures for the year then ended and the year to date figures for the 9 months period ended December 31, 2018. We have not issued a separate limited review report on the results and figures for the quarter ended March 31, 2019. Our report on the Statement is not modified in respect of this matter.

• The Statement includes the results for the Quarter ended March 31, 2020 being the balancing figure between audited figures in respect of the full financial year and the published year to date figures up to the third quarter of the current financial year which were subject to limited review by us. Our report on the Statement is not modified in respect of this matter.

For DELOITTE HASKINS & SELLS LLP Chartered Accountants (Firm’s Registration No. 117366W/W-100018)

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Gurvinder Singh Partner (Membership No. 110128)

UDIN: 20110128AAAABA7906

Place: Bengaluru Date: May 11, 2020

SONATA SOFTWARE LIMITED

Registered Office: 208, T.V. Industrial Estate, S.K. Ahire Marg, Worli, Mumbai - 400 030 Corporate Office: 1/4, A.P.S Trust Building, Bull Temple Road, N.R. Colony, Bangalore - 560 019

CIN - L72200MH1994PLC082110

www.sonata-software.com, Tel : +91-080-67781999 Fax : +91-080-26601387, investor@sonata-software.com

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Part I ₹ in lakhs, except per share data
Statement of standalone financial results for the quarter and year ended March 31, 2020
Quarter ended Year ended
Sl No. Particulars March 31, December 31, March 31, March 31, March 31,
2020 2019 2019 2020 2019
(Refer Note 2) (Unaudited) (Refer Note 2) (Audited) (Audited)
1 Revenue from operations 22,178 23,018 21,907 87,684 82,933
2 Other income 5,545 1,223 288 9,713 1,768
3 Total Revenue (1 + 2) 27,723 24,241 22,195 97,397 84,701
4 Expenses
(a) Purchases of Stock-in-Trade 1,560 1,803 1,162 6,352 4,651
(b) Employee benefits expense 12,080 11,898 10,712 46,706 40,466
(c) Finance costs 287 259 - 1,090 8
(d) Depreciation and amortization expense (Refer Note 6) 528 521 160 2,060 613
(e) Other expenses 4,406 3,154 4,003 14,314 15,075
Total expenses 18,861 17,635 16,037 70,522 60,813
5 Profit before exceptional items and tax (3 - 4) 8,862 6,606 6,158 26,875 23,888
6 Exceptional item
- Interest income on income tax refund - - - - 49
7 Profit before tax (5 + 6) 8,862 6,606 6,158 26,875 23,937
8 Tax expense
(1) Current tax 1,030 1,890 1,951 6,001 7,210
(2) Deferred tax (76) (197) (275) (252) (516)
9 Profit for the period (7 - 8) 7,908 4,913 4,482 21,126 17,243
10 Other comprehensive income
1 (a) Items that will not be reclassified to profit or (loss) (618) (52) 66 (846) (22)
(b) Income tax relating to items that will not be reclassified to profit or
(loss) 120 10 (30) 180 6
2 Items that will be reclassified to profit or (loss)
(a) Exchange differences in translating the financial statements of
foreign operations (9) 181 34 34 (99)
(b) Exchange differences on forward cover (1,459) (957) 704 (3,513) 1,721
(c) Income tax relating to items that will be reclassified to
profit or (loss) 205 198 (117) 741 (454)
Total (1,761) (620) 657 (3,404) 1,152
11 Total Comprehensive Income for the period (9 + 10) 6,147 4,293 5,139 17,722 18,395
12 Paid-up equity share capital (Face Value ₹ 1/-) 1,039 1,039 1,039 1,039 1,039
13 Other equity (Refer Note 4) 36,289 52,276 52,276 36,289 52,276
14 Earnings per equity share (of ₹ 1/- each) (Refer Note 5)
(a) Basic 7.61 4.73 4.32 20.33 16.59
(b) Diluted 7.61 4.73 4.31 20.33 16.58
See accompanying notes to the financial results
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SONATA SOFTWARE LIMITED

Registered Office: 208, T.V. Industrial Estate, S.K. Ahire Marg, Worli, Mumbai - 400 030 Corporate Office: 1/4, A.P.S Trust Building, Bull Temple Road, N.R. Colony, Bangalore - 560 019

CIN - L72200MH1994PLC082110

www.sonata-software.com, Tel : +91-080-67781999 Fax : +91-080-26601387, investor@sonata-software.com

( ₹ in lakhs)

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Standalone Balance Sheet
As at As at
Sl No. Particulars
March 31, 2020 March 31, 2019
ASSETS
1 NON-CURRENT ASSETS
(a) Property, Plant and Equipment 1,621 1,711
(b) Right-of-use assets 8,387 -
(c) Capital work-in-progress - 3
(d) Goodwill 282 282
(e) Financial assets
(i) Investments 5,108 5,034
(ii) Other Financial Assets 1,805 1,474
(f) Deferred tax assets (net) 1,998 1,124
(g) Other non-current assets 3,722 2,801
22,923 12,429
2 CURRENT ASSETS
(a) Financial assets
(i) Investments 480 9,899
(ii) Trade receivables 23,009 28,860
(iii) Cash and cash equivalents 13,762 7,174
(iv) Bank balances other than (iii) above 1,856 1,436
(v) Loans 220 245
(vi) Other financial assets 2,095 4,807
(b) Other current assets 890 842
42,312 53,263
TOTAL - ASSETS 65,235 65,692
EQUITY AND LIABILITIES
3 EQUITY
(a) Equity share capital 1,039 1,039
(b) Other equity 36,289 52,276
37,328 53,315
LIABILITIES
4 NON-CURRENT LIABILITIES
(a)Financial liabilities
(i)Other financial liabilities 9,091 914
(b)Other non-current liabilities - 858
9,091 1,772
5 CURRENT LIABILITIES
(a) Financial liabilities
(i) Trade payables
Total outstanding dues of micro enterprises and small enterprises 561 43
Total outstanding dues of creditors other than micro enterprises and small enterprises 7,242 5,117
(ii) Other financial liabilities 3,960 421
(b) Other current liabilities 3,384 1,637
(c) Provisions 1,598 1,228
(d) Current tax liabilities (net) 2,071 2,159
18,816 10,605
TOTAL - EQUITY AND LIABILITIES 65,235 65,692
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The disclosure is an extract of the standalone Balance Sheet as at March 31, 2020 and March 31, 2019 in compliance with Indian Accounting Standards ("Ind AS")

• 1 These quaterly and year ended standalone financial results prepared in accordance with Indian Accounting Standards applicable as per Sec 133 of the Companies Act, 2013 have been reviewed by the Audit Committee and approved by the Board of Directors at their respective meetings held on May 11, 2020.

• 2 The figures for the quarter ended March 31, 2020 and March 31, 2019, are balancing figures arrived based on audited results of the full financial year and published year to date unaudited figures for nine months ended December 31, 2019 and December 31, 2018 respectively. The statutory auditors have performed a limited review on the results for the quarter ended March 31, 2020.

• 3 The Company also publishes consolidated financial results in addition to standalone financial results. In accordance with Ind AS 108 Operating Segments, the Company has disclosed the segment information in the consolidated financial results.

• 4 The other equity with respect to quarter and nine months represents balance as per the audited Balance Sheet of the previous year as required by SEBI (Listing and Other Disclosure Requirements) Regulations, 2015

• 5 EPS for quarterly periods is not annualised. 6 Effective April 1, 2019, the Company adopted Ind AS 116 "Leases", applied to all lease contracts existing on April 1, 2019 using the modified retrospective method and has recognised Right of use (ROU) asset measured at the present value of the remaining lease payments discounted using incremental borrowing rate with corresponding lease liability, on the date of initial application.

• 7 The management has considered the possible effects of the pandemic relating to COVID-19 on the carrying amounts of receivables and goodwill as at March 31, 2020. The assumptions in making the estimates relating to the uncertainties as at the Balance sheet date in relation to recoverable amounts of these assets, the management has considered the global economic conditions prevailing at the date of approval of these financial results and has used internal and external sources of Information including credit reports to the extent determined by it. The eventual outcome of impact of the global health pandemic may be different from those estimated as on the date of approval of these financial results.

• 8 On 20th September 2019, the Government of India, vide the Taxation Laws (Amendment) Ordinance 2019, inserted Section 115BAA in the Income Tax Act, 1961, which provides domestic companies an option to pay Corporate Tax at reduced rate effective 01 April 2019, subject to certain conditions. The Company has completed it's evaluation and has opted to pay tax at the reduced rate.

• 9 As the year-to-date figures are taken from the source and rounded off to the nearest digits, the quarter figures in this results added up to the figures reported in the previous quarters might not always add up to the year-to-date figures reported in this results.

Standalone Cash Flow Statement

	(₹ in Lakhs)
Particulars	March 31, 2020 March 31, 2019 For the year ended
A. CASH FLOW FROM OPERATING ACTIVITIES Net profit before tax Adjustments for : Depreciation and amortization expense Finance costs Provision for doubtful trade receivables Provisions/ liabilities no longer required written back Interest from unwinding of rent deposits discounted Interest from fixed deposits/margin money with banks Interest from inter-corporate deposits Interest on Income-tax refund Interest income from rent sub lease Dividend income from current investments Dividend income from long-term investments in subsidiaries Net (gain) / loss on sale of fixed assets / scrapped Net (gain) / loss on valuation of current investments Excess of carrying costs over fair value of current investments Discounting of lease deposits debited to rent Expenses on employee stock based compensation Exchange (gain)/loss on revaluation of investments Net unrealized foreign exchange (gain) / loss Operating profit before changes in operating assets and liabilities Adjustments for : Decrease/(increase) in trade receivables Decrease/(increase) in other financial assets-current Decrease/(increase) in other financial assets non-current Decrease/(increase) in other non-current assets Decrease/(increase) in other current assets (Decrease)/increase in other financial liabilities non-current (Decrease)/increase in trade payables (Decrease)/increase in other financial liabilities (Decrease)/increase in other current liabilities (Decrease)/increase in other non-current liabilities (Decrease)/increase in provisions Net cash flow from / (used in) operating activities before taxes Inccome taxes paid, net of refunds Net cash flow from / (used in) operating activities (A) B. CASH FLOW FROM INVESTING ACTIVITIES Payments for Property, Plant and equipment Proceeds from disposal of Property, Plant and equipment Cash outflow on acquisition of subsidiary Purchase of investments Proceeds from sale of current investments Bank balances not considered as Cash and cash equivalents Interest received Dividend received from subsidiary Inter corporate deposit to subsidiary (net) Net cash flow from / (used in) investing activities (B) C. CASH FLOW FROM FINANCING ACTIVITIES Payment on lease liabilities Dividends paid on equity shares Dividend taxes paid on equity shares Proceeds received from issue of equity shares Finance costs paid Net cash flow from / (used in) financing activities (C) Net increase/(decrease) in Cash and cash equivalents (A+B+C) Opening Cash and cash equivalents Exchange difference on translation of foreign currency Cash and cash equivalents Closing Cash and cash equivalents Cash and cash equivalents at the end of the year comprises: In current accounts In EEFC accounts In demand deposit accounts	26,875 23,937 2,060 613 1,081 2 (90) 75 (57) (10) (23) (17) (432) (290) (75) (107) - (49) (36) - - (236) (5,506) (337) 1 15 (487) (637) 220 - - (13) 58 57 (72) 43 (790) (1,819) 22,727 21,227 7,889 (9,325) 510 (472) 14 (220) (64) 34 (48) (328) (16) - 2,864 (576) 17 48 901 304 - 85 370 238 35,164 11,015 (7,000) (7,303) 28,164 3,712 (756) (642) 3 1 (1) (1,323) (24,400) (42,204) 34,087 50,250 (420) (496) 522 394 5,506 337 25 (245) 14,566 6,072 (1,759) - (29,303) (11,804) (4,975) (2,470) - 1 (41) (2) (36,078) (14,275) 6,652 (4,491) 7,174 11,627 (64) 38 13,762 7,174 - - 2,095 2,165 8,543 89 3,124 4,920 13,762 7,174

FOR AND ON BEHALF OF THE BOARD OF DIRECTORS

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Place: Bengaluru Date: May 11, 2020

P SRIKAR REDDY MANAGING DIRECTOR & CHIEF EXECUTIVE OFFICER

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W i t h r e s p e c t t o t h e C o n s o l i d a t e d F i n a n c i a l R e s u l t s f o r t h e q u a r t e r e n d e d M a r c h 3 1 , 2 0 2 0 , b a s e d o n o u r r e v i e w c o n d u c t e d a n d p r o c e d u r e s p e r f o r m e d a s s t a t e d i n p a r a g r a p h ( b ) o f A u d i t o r ’ s R e s p o n s i b i l i t i e s s e c t i o n b e l o w , n o t h i n g h a s c o m e t o o u r a t t e n t i o n t h a t c a u s e s u s t o b e l i e v e t h a t t h e C o n s o l i d a t e d F i n a n c i a l R e s u l t s f o r t h e q u a r t e r e n d e d M a r c h 3 1 , 2 0 2 0 , p r e p a r e d i n a c c o r d a n c e w i t h t h e r e c o g n i t i o n a n d m e a s u r e m e n t p r i n c i p l e s l a i d d o w n i n t h e I n d i a n A c c o u n t i n g S t a n d a r d s a n d o t h e r a c c o u n t i n g p r i n c i p l e s g e n e r a l l y a c c e p t e d i n I n d i a , h a s n o t d i s c l o s e d t h e i n f o r m a t i o n r e q u i r e d t o b e d i s c l o s e d i n t e r m s o f R e g u l a t i o n 3 3 o f t h e S E B I ( L i s t i n g O b l i g a t i o n s a n d D i s c l o s u r e R e q u i r e m e n t s ) R e g u l a t i o n s , 2 0 1 5 , a s a m e n d e d , i n c l u d i n g t h e m a n n e r i n w h i c h i t i s t o b e d i s c l o s e d , o r t h a t i t c o n t a i n s a n y m a t e r i a l m i s s t a t e m e n t . B a s i s f o r O p i n i o n o n t h e A u d i t e d C o n s o l i d a t e d F i n a n c i a l R e s u l t s f o r t h e y e a r e n d e d M a r c h 3 1 , 2 0 2 0 W e c o n d u c t e d o u r a u d i t i n a c c o r d a n c e w i t h t h e S t a n d a r d s o n A u d i t i n g ( “ S A s ” ) s p e c i f i e d u n d e r S e c t i o n 1 4 3 ( 1 0 ) o f t h e C o m p a n i e s A c t , 2 0 1 3 ( “ t h e A c t ” ) . O u r r e s p o n s i b i l i t i e s u n d e r t h o s e S t a n d a r d s a r e f u r t h e r d e s c r i b e d i n p a r a g r a p h ( a ) o f A u d i t o r ’ s R e s p o n s i b i l i t i e s s e c t i o n b e l o w . W e a r e i n d e p e n d e n t o f t h e G r o u p i n a c c o r d a n c e w i t h t h e C o d e o f E t h i c s i s s u e d b y t h e I n s t i t u t e o f C h a r t e r e d A c c o u n t a n t s o f I n d i a ( “ I C A I ” ) t o g e t h e r w i t h t h e e t h i c a l r e q u i r e m e n t s t h a t a r e r e l e v a n t t o o u r a u d i t o f t h e C o n s o l i d a t e d F i n a n c i a l R e s u l t s f o r t h e y e a r e n d e d M a r c h 3 1 , 2 0 2 0 u n d e r t h e p r o v i s i o n s o f t h e A c t a n d t h e R u l e s t h e r e u n d e r , a n d w e h a v e f u l f i l l e d o u r o t h e r e t h i c a l r e s p o n s i b i l i t i e s i n a c c o r d a n c e w i t h t h e s e r e q u i r e m e n t s a n d t h e I C A I ’ s C o d e o f E t h i c s . W e b e l i e v e t h a t t h e a u d i t e v i d e n c e o b t a i n e d b y u s i s s u f f i c i e n t a n d a p p r o p r i a t e t o p r o v i d e a b a s i s f o r o u r a u d i t o p i n i o n . M a n a g e m e n t ’ s R e s p o n s i b i l i t i e s f o r t h e S t a t e m e n t T h i s S t a t e m e n t , w h i c h i n c l u d e s t h e C o n s o l i d a t e d F i n a n c i a l R e s u l t s i s t h e r e s p o n s i b i l i t y o f t h e P a r e n t ’ s B o a r d o f D i r e c t o r s a n d h a s b e e n a p p r o v e d b y t h e m f o r t h e i s s u a n c e . T h e C o n s o l i d a t e d F i n a n c i a l R e s u l t s f o r t h e y e a r e n d e d M a r c h 3 1 , 2 0 2 0 , h a s b e e n c o m p i l e d f r o m t h e r e l a t e d a u d i t e d c o n s o l i d a t e d f i n a n c i a l s t a t e m e n t s . T h i s r e s p o n s i b i l i t y i n c l u d e s t h e p r e p a r a t i o n a n d p r e s e n t a t i o n o f t h e C o n s o l i d a t e d F i n a n c i a l R e s u l t s f o r t h e q u a r t e r a n d y e a r e n d e d M a r c h 3 1 , 2 0 2 0 t h a t g i v e a t r u e a n d f a i r v i e w o f t h e c o n s o l i d a t e d n e t p r o f i t a n d c o n s o l i d a t e d o t h e r c o m p r e h e n s i v e i n c o m e a n d o t h e r f i n a n c i a l i n f o r m a t i o n o f t h e G r o u p i n a c c o r d a n c e w i t h t h e r e c o g n i t i o n a n d m e a s u r e m e n t p r i n c i p l e s l a i d d o w n i n t h e I n d i a n A c c o u n t i n g S t a n d a r d s , p r e s c r i b e d u n d e r S e c t i o n 1 3 3 o f t h e A c t , r e a d w i t h r e l e v a n t r u l e s i s s u e d t h e r e u n d e r a n d o t h e r a c c o u n t i n g p r i n c i p l e s g e n e r a l l y a c c e p t e d i n I n d i a a n d i n c o m p l i a n c e w i t h R e g u l a t i o n 3 3 o f t h e L i s t i n g R e g u l a t i o n s . T h e r e s p e c t i v e B o a r d o f D i r e c t o r s o f t h e c o m p a n i e s i n c l u d e d i n t h e G r o u p a r e r e s p o n s i b l e f o r m a i n t e n a n c e o f a d e q u a t e a c c o u n t i n g r e c o r d s i n a c c o r d a n c e w i t h t h e p r o v i s i o n s o f t h e A c t f o r s a f e g u a r d i n g t h e a s s e t s o f t h e G r o u p a n d f o r p r e v e n t i n g a n d d e t e c t i n g f r a u d s a n d o t h e r i r r e g u l a r i t i e s ; s e l e c t i o n a n d a p p l i c a t i o n o f a p p r o p r i a t e a c c o u n t i n g p o l i c i e s ; m a k i n g j u d g m e n t s a n d e s t i m a t e s t h a t a r e r e a s o n a b l e a n d p r u d e n t ; a n d t h e d e s i g n , i m p l e m e n t a t i o n a n d m a i n t e n a n c e o f a d e q u a t e i n t e r n a l f i n a n c i a l c o n t r o l s , t h a t w e r e o p e r a t i n g e f f e c t i v e l y f o r e n s u r i n g t h e a c c u r a c y a n d c o m p l e t e n e s s o f t h e a c c o u n t i n g r e c o r d s , r e l e v a n t t o t h e p r e p a r a t i o n a n d p r e s e n t a t i o n o f t h e r e s p e c t i v e f i n a n c i a l r e s u l t s t h a t g i v e a t r u e a n d f a i r v i e w a n d a r e f r e e f r o m m a t e r i a l m i s s t a t e m e n t , w h e t h e r d u e t o f r a u d o r e r r o r , w h i c h h a v e b e e n u s e d f o r t h e p u r p o s e o f p r e p a r a t i o n o f t h i s C o n s o l i d a t e d F i n a n c i a l R e s u l t s b y t h e D i r e c t o r s o f t h e P a r e n t , a s a f o r e s a i d .

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T h e r e s p e c t i v e B o a r d o f D i r e c t o r s o f t h e c o m p a n i e s i n c l u d e d i n t h e G r o u p a r e r e s p o n s i b l e f o r o v e r s e e i n g t h e f i n a n c i a l r e p o r t i n g p r o c e s s o f t h e G r o u p . A u d i t o r ’ s R e s p o n s i b i l i t i e s ( a ) A u d i t o f t h e C o n s o l i d a t e d F i n a n c i a l R e s u l t s f o r t h e y e a r e n d e d M a r c h 3 1 , 2 0 2 0 O u r o b j e c t i v e s a r e t o o b t a i n r e a s o n a b l e a s s u r a n c e a b o u t w h e t h e r t h e C o n s o l i d a t e d F i n a n c i a l R e s u l t s f o r t h e y e a r e n d e d M a r c h 3 1 , 2 0 2 0 a s a w h o l e a r e f r e e f r o m m a t e r i a l m i s s t a t e m e n t , w h e t h e r d u e t o f r a u d o r e r r o r , a n d t o i s s u e a n a u d i t o r ’ s r e p o r t t h a t i n c l u d e s o u r o p i n i o n . R e a s o n a b l e a s s u r a n c e i s a h i g h l e v e l o f a s s u r a n c e , b u t i s n o t a g u a r a n t e e t h a t a n a u d i t c o n d u c t e d i n a c c o r d a n c e w i t h S A s w i l l a l w a y s d e t e c t a m a t e r i a l m i s s t a t e m e n t w h e n i t e x i s t s . M i s s t a t e m e n t s c a n a r i s e f r o m f r a u d o r e r r o r a n d a r e c o n s i d e r e d m a t e r i a l i f , i n d i v i d u a l l y o r i n t h e a g g r e g a t e , t h e y c o u l d r e a s o n a b l y b e e x p e c t e d t o i n f l u e n c e t h e e c o n o m i c d e c i s i o n s o f u s e r s t a k e n o n t h e b a s i s o f t h i s C o n s o l i d a t e d F i n a n c i a l R e s u l t s . A s p a r t o f a n a u d i t i n a c c o r d a n c e w i t h S A s , w e e x e r c i s e p r o f e s s i o n a l j u d g m e n t a n d m a i n t a i n p r o f e s s i o n a l s k e p t i c i s m t h r o u g h o u t t h e a u d i t . W e a l s o : • I d e n t i f y a n d a s s e s s t h e r i s k s o f m a t e r i a l m i s s t a t e m e n t o f t h e A n n u a l C o n s o l i d a t e d F i n a n c i a l R e s u l t s , w h e t h e r d u e t o f r a u d o r e r r o r , d e s i g n a n d p e r f o r m a u d i t p r o c e d u r e s r e s p o n s i v e t o t h o s e r i s k s , a n d o b t a i n a u d i t e v i d e n c e t h a t i s s u f f i c i e n t a n d a p p r o p r i a t e t o p r o v i d e a b a s i s f o r o u r o p i n i o n . T h e r i s k o f n o t d e t e c t i n g a m a t e r i a l m i s s t a t e m e n t r e s u l t i n g f r o m f r a u d i s h i g h e r t h a n f o r o n e r e s u l t i n g f r o m e r r o r , a s f r a u d m a y i n v o l v e c o l l u s i o n , f o r g e r y , i n t e n t i o n a l o m i s s i o n s , m i s r e p r e s e n t a t i o n s , o r t h e o v e r r i d e o f i n t e r n a l c o n t r o l . • O b t a i n a n u n d e r s t a n d i n g o f i n t e r n a l c o n t r o l r e l e v a n t t o t h e a u d i t i n o r d e r t o d e s i g n a u d i t p r o c e d u r e s t h a t a r e a p p r o p r i a t e i n t h e c i r c u m s t a n c e s , b u t n o t f o r t h e p u r p o s e o f e x p r e s s i n g a n o p i n i o n o n t h e e f f e c t i v e n e s s o f s u c h c o n t r o l s . • E v a l u a t e t h e a p p r o p r i a t e n e s s o f a c c o u n t i n g p o l i c i e s u s e d a n d t h e r e a s o n a b l e n e s s o f a c c o u n t i n g e s t i m a t e s m a d e b y t h e B o a r d o f D i r e c t o r s . • E v a l u a t e t h e a p p r o p r i a t e n e s s a n d r e a s o n a b l e n e s s o f d i s c l o s u r e s m a d e b y t h e B o a r d o f D i r e c t o r s i n t e r m s o f t h e r e q u i r e m e n t s s p e c i f i e d u n d e r R e g u l a t i o n 3 3 o f t h e L i s t i n g R e g u l a t i o n s . • C o n c l u d e o n t h e a p p r o p r i a t e n e s s o f t h e B o a r d o f D i r e c t o r s ’ u s e o f t h e g o i n g c o n c e r n b a s i s o f a c c o u n t i n g a n d , b a s e d o n t h e a u d i t e v i d e n c e o b t a i n e d , w h e t h e r a m a t e r i a l u n c e r t a i n t y e x i s t s r e l a t e d t o e v e n t s o r c o n d i t i o n s t h a t m a y c a s t s i g n i f i c a n t d o u b t o n t h e a b i l i t y o f t h e G r o u p t o c o n t i n u e a s a g o i n g c o n c e r n . I f w e c o n c l u d e t h a t a m a t e r i a l u n c e r t a i n t y e x i s t s , w e a r e r e q u i r e d t o d r a w a t t e n t i o n i n o u r a u d i t o r ’ s r e p o r t t o t h e r e l a t e d d i s c l o s u r e s i n t h e C o n s o l i d a t e d F i n a n c i a l R e s u l t s o r , i f s u c h d i s c l o s u r e s a r e i n a d e q u a t e , t o m o d i f y o u r o p i n i o n . O u r c o n c l u s i o n s a r e b a s e d o n t h e a u d i t e v i d e n c e o b t a i n e d u p t o t h e d a t e o f o u r a u d i t o r ’ s r e p o r t . H o w e v e r , f u t u r e e v e n t s o r c o n d i t i o n s m a y c a u s e t h e G r o u p t o c e a s e t o c o n t i n u e a s a g o i n g c o n c e r n .

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F o r D E L O I T T E H A S K I N S & S E L L S L L P
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P l a c e : B e n g a l u r u D a t e : M a y 1 1 , 2 0 2 0

SONATA SOFTWARE LIMITED

Registered Office: 208, T.V. Industrial Estate, S.K. Ahire Marg, Worli, Mumbai - 400 030 Corporate Office: 1/4, A.P.S Trust Building, Bull Temple Road, N.R. Colony, Bangalore - 560 019

CIN - L72200MH1994PLC082110

www.sonata-software.com, Tel : +91-080-67781999 Fax : +91-080-26601387, investor@sonata-software.com

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Part I ₹ in lakhs, except per share data
Statement of consolidated financial results for the quarter and year ended March 31, 2020
Quarter ended Year ended
Sl No. Particulars March 31, December 31, March 31, March 31, March 31,
2020 2019 2019 2020 2019
(Refer Note 6) (Unaudited) (Refer Note 6) (Audited) (Audited)
1 Revenue from operations 92,868 123,688 83,555 374,326 296,090
2 Other income 1,218 859 749 5,840 2,725
3 Total Revenue (1 + 2) 94,086 124,547 84,304 380,166 298,815
4 Expenses
(a) Purchases of Stock-in-Trade 58,895 89,037 51,572 241,579 178,036
(b) Employee benefits expense 17,011 16,697 15,251 66,031 56,886
(c) Finance costs 355 430 71 1,518 339
(d) Depreciation and amortization expense (Refer Note 5) 923 913 401 3,654 1,274
(e) Other expenses 8,659 6,987 7,890 29,435 27,607
Total expenses 85,843 114,064 75,185 342,217 264,142
5 Profit before exceptional items and tax (3 - 4) 8,243 10,483 9,119 37,949 34,673
6 Exceptional item
- Interest income on income tax refund - - 91 - 276
7 Profit before tax (5 + 6) 8,243 10,483 9,210 37,949 34,949
8 Tax expense
(1) Current tax 2,181 2,763 3,170 10,603 11,045
(2) Deferred tax (117) 134 (495) (347) (984)
9 Profit for the period (7 - 8) 6,179 7,586 6,535 27,693 24,888
10 Other comprehensive income
1 (a) Items that will not be reclassified to profit or (loss) (674) (42) 76 (865) (22)
(b) Income tax relating to items that will not be reclassified
to profit or (loss) 179 10 (22) 232 11
2 Items that will be reclassified to profit or (loss)
(a) Exchange differences in translating the financial statements
of foreign operations and on goodwill reinstatement (72) 824 285 323 (76)
(b) Exchange differences on forward cover (1,416) (965) 909 (3,511) 1,665
(c) Income tax relating to Items that will be
reclassified to profit or (loss) 382 46 (201) 854 (348)
Total (1,601) (127) 1,047 (2,967) 1,230
11 Total Comprehensive Income for the period (9 + 10) 4,578 7,459 7,582 24,726 26,118
Of the Total Comprehensive Income above, total comprehensive income
attributable to:
4,578 7,459 7,582 24,726 26,156
Non - controlling interest - - - - (38)
4,578 7,459 7,582 24,726 26,118
Of the Total Comprehensive Income above, Profit for the period
attributable to:
Owners of the parent 6,179 7,586 6,535 27,693 24,926
Non - controlling interest - - - - (38)
6,179 7,586 6,535 27,693 24,888
Of the Total Comprehensive Income above, Other Comprehensive Income
for the period attributable to:
Owners of the parent (1,601) (127) 1,047 (2,967) 1,230
Non - controlling interest - - - - -
(1,601) (127) 1,047 (2,967) 1,230
12 Paid-up equity share capital (Face Value ₹ 1/-) 1,039 1,039 1,039 1,039 1,039
13 Other equity (Refer Note 4) 65,928 75,787 75,787 65,928 75,787
14 Earnings per equity share (of ₹ 1/- each) (Refer Note 3)
(a) Basic 5.95 7.30 6.29 26.66 23.99
(b) Diluted 5.95 7.30 6.29 26.66 23.97
See accompanying notes to the consolidated financial results
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SONATA SOFTWARE LIMITED

Registered Office: 208, T.V. Industrial Estate, S.K. Ahire Marg, Worli, Mumbai - 400 030 Corporate Office: 1/4, A.P.S Trust Building, Bull Temple Road, N.R. Colony, Bangalore - 560 019

CIN - L72200MH1994PLC082110

www.sonata-software.com, Tel : +91-080-67781999 Fax : +91-080-26601387, investor@sonata-software.com

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Part II (₹ in lakhs)
Consolidated Balance Sheet
As at As at
Sl No. Particulars
March 31, 2020 March 31, 2019
ASSETS
1 NON-CURRENT ASSETS
(a) Property, Plant and Equipment 2,130 2,203
(b) Right-of-use assets 9,729 -
(c) Capital work-in-progress - 55
(d) Goodwill 15,578 14,519
(e) Other intangible assets 2,377 3,220
(f) Financial assets
(i) Investments 873 621
(ii) Other Financial Assets 3,655 1,912
(g) Deferred tax assets (net) 2,439 1,190
(h) Other non-current assets 5,906 4,412
Total 42,687 28,132
2 CURRENT ASSETS
(a) Financial assets
(i) Investments 480 14,015
(ii) Trade receivables 70,000 81,111
(iii) Cash and cash equivalents 37,220 17,432
(iv) Bank balances other than (iii) above 2,424 2,489
(v) Other Financial Assets 4,326 6,854
(b) Other current assets 4,509 2,775
Total current assets 118,959 124,676
TOTAL ASSETS 161,646 152,808
EQUITY AND LIABILITIES
3 EQUITY
(a) Equity Share capital 1,039 1,039
(b) Other equity 65,928 75,787
Total 66,967 76,826
LIABILITIES
4 NON-CURRENT LIABILITIES
(a) Financial liabilities
Other Financial Liabilities 12,785 3,284
(b) Other non-current liabilities - 1,066
12,785 4,350
5
(a) Financial liabilities
(i) Borrowings 8,600 1,562
(ii) Trade payables 56,186 58,733
(iii) Other Financial Liabilities 4,389 388
(b) Other current liabilities 6,833 4,842
(c) Provisions 2,293 1,850
(d) Current tax liabilities (net) 3,593 4,257
Total current liabilities 81,894 71,632
TOTAL EQUITY AND LIABILITIES 161,646 152,808
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The disclosure is an extract of the consolidated Balance Sheet as at March 31, 2020 and March 31, 2019 in compliance with Indian Accounting Standards ("Ind AS")

Consolidated Cash Flow Statement

	(₹ in Lakhs)
Particulars	March 31, 2020 March 31, 2019 For the year ended
A. CASH FLOW FROM OPERATING ACTIVITIES: Net profit before tax Adjustments for : Depreciation and amortization expense Finance costs Provision for doubtful trade receivables Provision/ liabilities no longer required written back Unwinding of rent deposits discounted Interest from fixed deposits/margin money with banks Interest income on income tax refund Dividend income from current investments (Gain) / loss on sale of fixed assets / scrapped Net (gain) on valuation of current investments Discounting of lease deposits debited to rent Expenses on employee stock based compensation Unrealized foreign exchange gain (net) Operating profit before working capital changes Adjustments for: Decrease/(Increase) in trade receivables Decrease/(increase) in other financial assets non-current Decrease/(increase) in other financial assets-current Decrease/(increase) in other non-current assets Decrease/(increase) in other current assets (Decrease)/Increase in trade payables (Decrease)/increase in other financial liabilities non-current (Decrease)/increase in other financial liabilities (Decrease)/increase in other current liabilities (Decrease)/increase in other non-current liabilities (Decrease)/increase in provisions Cash generated from operations Direct taxes/advance tax paid (net) Net cash flow from operating activities (A) B. CASH FLOW FROM INVESTING ACTIVITIES Purchase of fixed assets, including intangible assets, capital work-in-progress and capital advances Proceeds from sale of fixed assets Purchase of current investments Purchase of non-current investments Payment towards acquisition of business Proceeds from sale of investments Bank balances not considered as Cash and cash equivalents Interest received Net cash flow used in investing activities (B) C. CASH FLOW FROM FINANCING ACTIVITIES Payment on lease liabilities Proceeds/(repayment) from/(of) short-term borrowings (net) Dividend paid on equity shares Dividend taxes paid on equity shares Proceeds received from issue of equity shares Finance costs Net cash flow used in financing activities (C) Net increase/(decrease) in cash and cash equivalents (A+B+C) Opening cash and cash equivalents Exchange difference on translation of foreign currency cash and cash equivalents Closing Cash and cash equivalents Cash and cash equivalents at the end of the year comprises: Cash on hand Balances with banks In Current accounts In EEFC accounts In demand deposit accounts	37,949 34,949 3,654 1,274 1,491 304 871 226 (167) (651) (25) (19) (850) (483) - (276) - (387) 2 20 (541) (832) 60 (20) 58 57 (2,683) (2,612) 39,819 31,550 13,680 (39,867) (1,717) 224 236 (353) (56) 121 (1,730) 869 (2,268) 14,797 281 (63) (1) - 1,181 480 - 41 443 249 49,868 8,048 (12,893) (8,668) 36,975 (620) (847) (803) 3 18 (88,447) (118,603) (246) (553) - (3,826) 102,511 125,581 65 (1,160) 868 480 13,907 1,134 (2,389) - 7,039 (1,953) (29,304) (11,804) (6,107) (2,539) - 1 (340) (309) (31,101) (16,604) 19,781 (16,090) 17,432 33,406 7 116 37,220 17,432 1 1 6,366 6,295 8,979 304 21,874 10,832 37,220 17,432

NotNotes:

• 1 These quaterly and year ended consolidated financials results prepared in accordance with Indian accounting standards applicable as per Sec 133 of the Companies Act, 2013 read with Rule 3 of the Companies (Indian Accounting Standards) Rules 2015 and amendments thereafter have been reviewed by the Audit Committee and approved by the Board of Directors at their respective meetings held on May 11, 2020.

• 2 Audited consolidated financial results include financial results of subsidiaries i.e, Sonata Information Technology Limited, Sonata Software North America Inc., Interactive Business Information Systems Inc. (IBIS), Sonata Software GmbH, Sonata Europe Limited, Sonata Software FZ-LLC , Sonata Software (Qatar) LLC, Scalable Data Systems Pty Ltd , Sopris Systems LLC. and Sonata Software Solutions Ltd(w.e.f February 24, 2020).

• 3 EPS for quarterly periods is not annualised.

• 4 The other equity with respect to quarter represents balance as per the audited Balance Sheet of the previous year as required by SEBI (Listing and Other Disclosure Requirements) Regulations, 2015.

• 5 Effective April 1, 2019, the Group adopted Ind AS 116 "Leases", applied to all lease contracts existing on April 1, 2019 using the modified retrospective method and has recognised Right of use (ROU) asset measured at the present value of the remaining lease payments discounted using incremental borrowing rate with corresponding lease liability, on the date of initial application.

• 6 The figures for the quarter ended March 31, 2020 and March 31, 2019, are balancing figures arrived based on audited results of the full financial year and published year to date unaudited figures for nine months ended December 31, 2019 and December 31, 2018 respectively. The statutory auditors have performed a limited review on the results for the quarter ended March 31, 2020.

• 7 Sonata Europe Limited, a wholly-owned subsidiary of Sonata Software Limited, signed definitive agreements with the Shareholders of GAPbuster Ltd, a UK registered Company to acquire 100% stake in GAPbuster on March 4, 2020 for an investment of USD 4.8 million (net of working capital) including USD 0.5 million which is deferred consideration payable on the expiry of one year. The acquisition was completed on April 20, 2020.

• 8 The management has considered the possible effects of the pandemic relating to COVID-19 on the carrying amounts of receivables, goodwill and intangible assets as at March 31, 2020. The assumptions in making the estimates relating to the uncertainties as at the Balance sheet date in relation to recoverable amounts of these assets, the management has considered the global economic conditions prevailing at the date of approval of these financial results and has used internal and external sources of Information including credit reports. The eventual outcome of impact of the global health pandemic may be different from those estimated as on the date of approval of these financial results.

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9 The consolidated segment wise revenue and results are as follows : (₹ in lakhs)
Particulars Quarter ended Year ended
March 31, December 31, March 31, March 31, March 31,
2020 2019 2019 2020 2019
(Refer Note 6) (Unaudited) (Refer Note 6) (Audited) (Audited)
1. Segment revenue
a. India 59,160 79,589 51,762 223,491 179,441
b. Other than India 34,084 44,594 32,307 152,997 119,020
Total 93,244 124,183 84,069 376,488 298,461
Less : Inter segment revenue (376) (495) (514) (2,162) (2,371)
Revenue from operations 92,868 123,688 83,555 374,326 296,090
2. Segment results
Profit before tax and interest
a. India 2,120 1,942 1,503 7,166 4,862
b. Other than India 6,265 8,668 6,607 30,673 27,560
Total 8,385 10,610 8,110 37,839 32,422
Less: Finance costs (355) (430) (71) (1,518) (339)
Add: Unallocable income net of unallocable expenditure 213 303 1,080 1,628 2,590
3. Profit before tax and exceptional item 8,243 10,483 9,119 37,949 34,673
Exceptional item
- Interest Income on income tax refund - - 91 - 276
4. Profit before tax 8,243 10,483 9,210 37,949 34,949
(₹ in lakhs)
Particulars March 31, December 31, March 31,
2020 2019 2019
5. Segment assets
a. India 63,425 71,183 50,377
b. Other than India 74,779 81,018 82,795
c. Unallocable 23,442 21,473 19,636
Total Assets 161,646 173,674 152,808
6. Segment liabilities
a. India 52,474 62,905 52,854
b. Other than India 30,010 26,012 17,302
c. Unallocable 12,195 4,189 5,826
Total Liabilities 94,679 93,106 75,982
FOR AND ON BEHALF OF THE BOARD OF DIRECTORS
Place : Bengaluru P SRIKAR REDDY
Date : May 11, 2020 MANAGING DIRECTOR
& CHIEF EXECUTIVE OFFICER
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Sonata Software - Consolidated FY 19-20 PAT at ₹ 277 Crores; 11% YoY growth Bengaluru, May 11, 2020

Sonata Software, a global IT services and technology solutions company, today reported its audited financial results for its 4[th] quarter and year ended 31[st] March 2020.

		in₹Crores
Description Revenues International IT Services Domestic- Products & Services Consolidated	31-Mar-20 31-Dec-19 QoQ 31-Mar-19 YoY 325.5 329.8 -1% 304.1 7% 607.0 912.0 -33% 536.6 13% 928.7 1,236.9 -25% 835.5 11% For the Quarter ended	For the Year ended
		31-Mar-20 31-Mar-19 YoY 1,272.3 1,120.5 14% 2,492.2 1,862.8 34% 3,743.3 2,960.9 26%
EBITDA International IT Services Domestic- Products & Services Consolidated*	72.3 91.6 -21% 75.8 -5% 23.2 27.0 -14% 21.2 9% 95.2* 118.3 -19% 96.8 -2%	337.8 292.0 16% 95.1 75.1 27% 431.2* 365.6 18%
PAT International IT Services Domestic- Products & Services Consolidated*	45.2 57.8 -22% 52.5 -14% 16.6 18.1 -8% 12.9 29% 61.8* 75.9 -19% 65.4 -5%	212.5 203.0 5% 64.4 46.3 39% 276.9* 249.3 11%
* The company has madeprovisionfor PF investment(IL&FS) of ₹ 12.7 crores during thequarter and ₹ 23.2 croresfor theyear.

Speaking on the results Mr. Srikar Reddy, Managing Director & CEO of the Company said:

“These last few weeks have been unprecedented in the speed of evolution of events and the impact it has had on businesses globally. Our immediate focus was obviously to ensure the employee safety and organise ourselves to deliver services remotely globally with work from home measures implemented effectively. We have been able to move 100% of our work force to work remotely/ from home globally and been able to create and implement processes to deliver different kinds of services to our clients extremely effectively without any disruption and in some cases with more productivity. All this would have not been possible without the commitment of all Sonatians and their effort in this is highly commendable. We took care of the immediate short-term responses effectively, we also have now drawn up plans to create and execute plans for growth. While our overall strategy of creating digital enterprises by creating platform through our unique Platformation[TM] methodology is more relevant in the new normal with more digitisation, automation and contactless operations.

A couple of industry verticals we were focussed on like travel and retail have been affected but we are glad to report that the acquisitions we made last year Sopris and Scalable have created opportunities in industries like utilities and commodity and Agri based businesses.

GBW our latest acquisition is in the customer experience space (CX) is another large emerging opportunity in the digital transformation pace.

www.sonata-software.com

Sonata Software Limited

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While we will be affected in the short term due to the impact of the COVID-19 we believe our long term business model and strategy and the investments we have made and continue to make in IP creation will stand us in good stead to take advantage of the opportunities that will definitely emerge when the crises ends.“

Performance Highlights for the quarter:

• Consolidated:

• Revenues at ₹ 928.7 crores;

• EBITDA at ₹ 95.2 crores*;

• PAT at ₹ 61.8 crores*;

• Cash and equivalents of approximately ₹ 311 Crores (net of borrowings).

• International IT Services:

• Revenues at ₹ 325.5 crores;

• EBITDA at ₹ 72.3 crores*;

• PAT at ₹ 45.2 crores*;

• Addition of 6 new customers.

• Domestic Products & Services:

• Revenues at ₹ 607 crores;

• EBITDA at ₹ 23.2 crores;

• PAT at ₹ 16.6 crores;

* The company has made a provision for PF investment (IL&FS) of ₹ 12.7 crore during the quarter.

About Sonata Software

Sonata is a global technology company, that enables successful platform based digital transformation initiatives for enterprises, to create businesses that are connected, open, intelligent and scalable. Sonata’s Platformation™ methodology brings together industry expertise, platform technology excellence, design thinking-led innovation and strategic engagement models to deliver sustained long term value to customers. A trusted partner of world leaders in the Retail, Manufacturing & Distribution, Travel and Software industries, Sonata’s solution portfolio includes its own digital platform such as Brick & Click Retail Platform©, Modern Distribution Platform©, Rezopia Digital Travel Platform©, RAPID DevOps Platform©, Kartopia E-commerce Platform© , Halosys Mobility Platform©, and Commodity CTRM Platform©, best-in-class capabilities on ISV digital technology platforms such as Microsoft Dynamics 365, Microsoft Azure, SAP Hybris, Cloud Engineering and Managed Services, as well as new digital applications like IoT, Artificial Intelligence, Machine Learning, Robotic Process Automation, Chatbots, Block Chain and Cyber Security. Sonata’s people and systems are nurtured to bring together the depth of thought leadership, customer commitment and execution excellence to make a difference to business with technology. For further information, please contact:

Nandita Venkatesh Sonata Software Limited CIN- L72200MH1994PLC082110 A.P.S. Trust Building, Bull Temple Road, N.R. Colony Bangalore 560019, India Tel: +91 80 67781999 nandita.v@sonata-software.com

www.sonata-software.com

Sonata Software Limited

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11[th] May, 2020

National Stock Exchange of India Limited Exchange Plaza, Bandra Kurla Complex, Mumbai Kind Attn: Manager, Listing Department Email Id: neaps@nse.co.in Stock Code ‐ SONATSOFTW

BSE Limited P.J. Towers, Dalal Street Mumbai Kind Attn: Manager, Listing Department Email Id: listing.centre@bseindia.com Stock Code ‐ 532221

Dear Sirs,

SUB: Declaration on Independent Audit Reports with unmodified opinion pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

This is to confirm that Deloitte Haskins & Sells, LLP, (FRN ‐117366W), Statutory Auditors of the Company, have issued Independent Audit Reports with unmodified opinion on the Standalone and Consolidated Audited financial results for the quarter and financial year ended March 31, 2020.

This declaration is provided pursuant to Regulation 33 (3) (d) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Kindly take the same on record.

Thanking you,

For Sonata Software Limited

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Jagannathan C N Chief Financial Officer

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