Sonata Software Ltd. — Interim / Quarterly Report 2021

Nov 9, 2020

6th November, 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 Sir/Madam,

Sub: Outcome of Board Meeting

Ref: Disclosure under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

This is to inform you that the Board of Directors at its meeting held today i.e. 6th November, 2020 inter-alia has:-

• a) Considered and adopted Unaudited Financial Results of the Company for quarter and half year ended 30th September, 2020. We hereby enclose a copy of the Unaudited Financial Results (Standalone and Consolidated) for the quarter and half year ended 30th September, 2020 together with the Limited Review Report from Statutory Auditors of the Company. A copy of the press release is also enclosed for your reference.
• b) Declared an Interim Dividend at Rs. 4.00 per share (400 % on par value of Re.1/-) for the financial year 2020-21. The Record date for the purpose of payment of the Interim Dividend will be on Thursday, 19th November, 2020. The Interim Dividend will be paid to the registered shareholders on or after 26th November, 2020 through Electronic mode or by dividend warrants, as applicable.

Pursuant to the amendments introduced in the Income Tax Act, 1961 (Act), vide Finance Act, 2020, w.e.f April 1, 2020, the Company will be required to withhold taxes at the prescribed rates on dividend paid to the shareholders. Hence, the Interim Dividend declared shall be paid after deducting tax at source ('TDS') in accordance with the provisions of the Income Tax Act, 1961.

Communication in this regard has been sent to the shareholders, whose email ID's are registered with the Company and uploaded on the website of the Company under Investor Relations section. The required documents to enable the Company to determine the appropriate TDS rates can be uploaded by the shareholders on the link https://ris.kfintech.com/form15/ on or before 16th November, 2020.

Also note that the aforesaid information is available on the Company's website www.sonata-software.com. For any further queries on Tax on Dividend shareholders are requested to write to Investor@sonata-software.com.

The meeting of the Board of Directors of the Company commenced at 10.45 a.m. and concluded at 3.00 p.m.

Kindly take the same on record.

Thanking you,

Yours faithfully For Sonata Software Limited MANGAL KRISHNARAO KULKARNI Digitally signed by MANGAL KRISHNARAO KULKARNI Date: 2020.11.06 15:13:38 +05'30'

Mangal Kulkarni Company Secretary, Compliance Officer and Head-Legal

Deloitte Haskins & Sells LLP

Chartered Accountants Prestige Trade Tower, Level 19 46, Palace Road, High Grounds Bengaluru - 560 001 Karnataka, India

Tel: +91 80 6188 6000 Fax: +91 80 6188 6011

INDEPENDENT AUDITOR'S REVIEW REPORT ON REVIEW OF INTERIM STANDALONE FINANCIAL RESULTS

TO THE BOARD OF DIRECTORS OF

SONATA SOFTWARE LIMITED

1. We have reviewed the accompanying Statement of Standalone Unaudited Financial Results of SONATA SOFTWARE LIMITED ("the Company"), for the quarter and six months ended September 30, 2020, ("the Statement"), being submitted by the Company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended.

2. This Statement, which is the responsibility of the Company's Management and approved by the Company's Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in the Indian Accounting Standard 34 "Interim Financial Reporting" ("Ind AS 34"), prescribed under Section 133 of the Companies Act, 2013 read with relevant rules issued thereunder and other accounting principles generally accepted in India. Our responsibility is to express a conclusion on the Statement based on our review.

3. We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity', issued by the Institute of Chartered Accountants of India (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 Standards on Auditing specified under section 143(10) of the Companies Act, 2013 and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

4. Based on our review conducted as stated in paragraph 3 above, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with the recognition and measurement principles laid down in the aforesaid Indian Accounting Standard 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.

For Deloitte Haskins and Sells LLP

Chartered Accountants (Firm's Registration No. 117366W/W-100018)

Come

Gurvinder Singh (Partner) (Membership No. 110128) (UDIN: 20110128AAAAFJ6001)

Place: Bengaluru Date: November 06, 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 - 560 004

CIN - L72200MH1994PLC082110

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

Part I ₹ in lakhs, except per share data

Statement of unaudited standalone financial results for the quarter and six months ended September 30, 2020

			Quarter ended		Six months ended		Year ended
Sl No.	Particulars	September 30,2020	June 30,2020	September 30,2019	September 30,2020	September 30,2019	March 31,2020
		(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Audited)
1	Revenue from operations	20,914	18,215	21,611	39,129	42,488	87,684
2	Other income	177	(149)	1,932	28	2,945	9,713
3	Total Revenue (1 + 2)	21,091	18,066	23,543	39,157	45,433	97,397
4	Expenses
	(a) Purchases of Stock-in-Trade	1,603	1,516	1,509	3,119	2,989	6,352
	(b) Employee benefits expense	9,947	9,310	11,607	19,257	22,729	46,706
	(c) Finance costs	244	250	264	494	542	1,090
	(d) Depreciation and amortization expense	476	480	509	956	1,011	2,060
	(e) Other expenses	1,924	1,977	3,453	3,901	6,754	14,314
	Total expenses	14,194	13,533	17,342	27,727	34,025	70,522
5	Profit before tax (3-4)	6,897	4,533	6,201	11,430	11,408	26,875
6	Tax expense
	(1) Current tax	1,832	1,562	1,749	3,394	3,081	6,001
	(2) Deferred tax	(148)	(374)	(138)	(522)	21	(252)
7	Profit for the period (5-6)	5,213	3,345	4,590	8,558	8,306	21,126
8	Other comprehensive income
	1 (a) Items that will not be reclassified to profit or (loss)	336	344	28	680	(176)	(846)
	(b) Income tax relating to items that will not be reclassified
	to profit or (loss)	(81)	(90)	(7)	(171)	51	180
	2 Items that will be reclassified to profit or (loss)
	(a) Exchange differences in translating the financial statements
	of foreign operations	10	13	(15)	23	(139)	34
	(b) Exchange differences on forward cover	1,352	1,060	(1,141)	2,412	(1,097)	(3,513)
	(c) Income tax relating to Items that will be
	reclassified to profit or (loss)	(331)	(281)	315	(612)	338	741
	Total	1,286	1,046	(820)	2,332	(1,023)	(3,404)
9	Total Comprehensive Income for the period (7 + 8)	6,499	4,391	3,770	10,890	7,283	17,722
10	Paid-up equity share capital (Face Value ₹ 1/-)	1,039	1,039	1,039	1,039	1,039	1,039
11	Other equity (Refer Note 6)	36,289	36,289	52,276	36,289	52,276	36,289
12	Earnings per equity share (of ₹ 1/- each) (Refer Note 5)
	(a) Basic	5.02	3.22	4.42	8.24	7.99	20.33
	(b) Diluted	5.02	3.22	4.42	8.24	7.99	20.33
	See accompanying notes to the financial results

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 - 560 004 CIN - L72200MH1994PLC082110

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

	Part II		(₹ in lakhs)
	Standalone Balance Sheet
Sl No.	Particulars	As atSeptember 30, 2020	As atMarch 31, 2020
	ASSETS
	1 NON-CURRENT ASSETS
	(a) Property, Plant and Equipment	1,320	1,621
	(b) Right-of-use assets	7,716	8,387
	(c) Capital work-in-progress	1	-
	(d) Goodwill	282	282
	(e) Financial assets
	(i) Investments	5,138	5,108
	(ii) Other Financial Assets	1,705	1,805
	(f) Deferred tax assets (net)	1,735	1,998
	(g) Other non-current assets	4,266	3,722
		22,163	22,923
	2 CURRENT ASSETS
	(a) Financial assets
	(i) Investments	508	480
	(ii) Trade receivables	9,119	23,009
	(iii) Cash and cash equivalents	34,876	13,762
	(iv) Bank balances other than (iii) above	1,980	1,856
	(v) Loans	150	220
	(vi) Other Financial Assets	1,795	2,095
	(b) Other current assets	1,163	890
		49,591	42,312
	TOTAL - ASSETS	71,754	65,235
	EQUITY AND LIABILITIES
	3 EQUITY(a) Equity Share capital	1,039	1,039
	(b) Other equity	47,102	36,289
		48,141	37,328
	LIABILITIES
	4 NON-CURRENT LIABILITIES
	(a) Other financial liabilities	6,925	7,382
		6,925	7,382
	5 CURRENT LIABILITIES
	(a) Financial liabilities
	(i) Trade payables
	Total outstanding dues of micro enterprises and small enterprises	4	14
	Total outstanding dues of creditors other than micro enterprises	5,361	7,789
	and small enterprises
	(ii) Other financial liabilities	3,543	5,669
	(b) Other current liabilities	2,710	3,384
	(c) Provisions	1,565	1,598
	(d) Current tax liabilities (net)	3,505	2,071
		16,688	20,525

TOTAL - EQUITY AND LIABILITIES 71,754 65,235

The disclosure is an extract of the unaudited standalone Balance Sheet as at September 30, 2020 and audited as at March 31, 2020 in compliance with Indian Accounting Standards ("Ind AS")

	Standalone Cash Flow Statement
		Six months ended
Sl No.	Particulars	September 30,2020	September 30,2019
	1 A. CASH FLOW FROM OPERATING ACTIVITIES
	Net profit before tax	11,430	11,408
	Operating profit before working capital changes	23,955	10,855
	Net cash (used in)/ generated by operating activities	21,642	11,471
	2 B. CASH FLOW FROM INVESTING ACTIVITIES	200	7,569
	3 C. CASH FLOW FROM FINANCING ACTIVITIES	(678)	(11,428)
	Net increase/(decrease) in cash and cash equivalents(A+B+C)	21,164	7,612
	Opening cash and cash equivalents	13,762	7,174
	Exchange difference on translation of foreign currency cash and cash equivalents	(50)	57
	Closing cash and cash equivalents	34,876	14,843

The disclosure is an extract of the unaudited standalone cash flow statement for the six months ended September 30, 2020 and September 30, 2019 in compliance with Ind AS 34 Interim financial reporting .

Notes

1 These quarterly and six months ended unaudited 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 November 6, 2020.

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

3 4 Other Income includes the following : Based on the financial performance of the Company, the Board at its meeting held today, approved an interim dividend of ₹ 4.00 /- per share.

		Quarter ended	Six months ended	Year ended
Particulars	September 30,	June 30,	September 30,	September 30,	September 30,	March 31,
	2020	2020	2019	2020	2019	2020
	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Audited)
i) Interest Income	198	137	213	336	336	566
ii) Dividend from subsidiary	-	-	338	-	338	5,506
iii) Net gain on current investments	9	16	79	24	289	267
iv) Net foreign exchange gain/(loss)	(197)	(328)	1,279	(526)	1,879	3,217
v) Other non-operating income	167	26	23	194	103	157
Total	177	(149)	1,932	28	2,945	9,713

5 EPS for quarterly and half-yearly periods are not annualised.

6 Balances for the quarter ended September 30, 2020, June 30, 2020 and September 30, 2019 represents balance as per the audited balance sheet for the year ended March 31, 2020 and March 31, 2019 respectively as required by SEBI (Listing and other disclosure requirements) regulations , 2015.

7 8 The management has considered the possible effects that may result from COVID-19 in the preparation of these standalone financial results including the recoverability of carrying amounts of financial and non-financial assets. In developing the assumptions relating to the recoverability 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. As the quarter and year-to-date figures are taken from the source and rounded to the nearest digits, the quarter figures in this results added up to the figures reported for the previous quarters might not always add up to the year-to-date figures reported in this results.

FOR AND ON BEHALF OF THE BOARD OF DIRECTORS

SRIKAR PALEM REDDY Digitally signed by SRIKAR PALEM REDDY Date: 2020.11.06 15:12:49 +05'30'

Date: November 6, 2020 MANAGING DIRECTOR & CHIEF EXECUTIVE OFFICER

Deloitte Haskins & Sells LLP

Chartered Accountants Prestige Trade Tower, Level 19 46, Palace Road, High Grounds Bengaluru - 560 001 Karnataka, India

Tel: +91 80 6188 6000 Fax: +91 80 6188 6011

INDEPENDENT AUDITOR'S REVIEW REPORT ON REVIEW OF INTERIM CONSOLIDATED FINANCIAL RESULTS

TO THE BOARD OF DIRECTORS OF

SONATA SOFTWARE LIMITED

1. We have reviewed the accompanying Statement of Consolidated Unaudited Financial Results of SONATA SOFTWARE LIMITED ("the Parent") and its subsidiaries (the Parent and its subsidiaries together referred to as "the Group"), for the quarter and six months ended September 30, 2020 ("the Statement") being submitted by the Parent pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended.

2. This Statement, which is the responsibility of the Parent's Management and approved by the Parent's Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in the Indian Accounting Standard 34 "Interim Financial Reporting" ("Ind AS 34"), prescribed under Section 133 of the Companies Act, 2013 read with relevant rules issued thereunder and other accounting principles generally accepted in India. Our responsibility is to express a conclusion on the Statement based on our review.

3. We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity", issued by the Institute of Chartered Accountants of India (ICAI). A review of interim financial information consists of making inquiries, primarily of Parent'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 Standards on Auditing specified under Section 143(10) of the Companies Act, 2013 and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

4. The Statement includes the results of the Parent and subsidiaries as given in the Annexure of this report.

5. Based on our review conducted and procedures performed as stated in paragraph 3 above, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with the recognition and measurement principles laid down in the aforesaid Indian Accounting Standard 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.

For Deloitte Haskins and Sells LLP

Chartered Accountants (Firm's Registration No. No. 117366W/W-100018)

Gurvinder Singh

Partner (Membership No. 110128) (UDIN: 20110128AAAAFK4009)

Place: Bengaluru Date: November 06, 2020

Deloitte Haskins & Sells LLP

Annexure to the Auditor's Report:

List of Subsidiaries:

• 1. Sonata Information Technology Limited
• 1. Sonata Software Solutions Limited
• 1. Sonata Software North America Inc.
• 1. Interactive Business Information Systems Inc.
• 1. Sonata Software FZ LLC
• 1. Sonata Software (Qatar) LLC
• 1. Sonata Europe Limited
• 1. Sonata Software GmbH
• 1. Scalable Data Systems Pty Ltd
• 1. Sopris Systems LLC
• 1. GAPbuster China Co. Ltd
• 1. GAPbuster Europe Limited
• 1. GAPbuster Inc.
• 1. Gapbuster Limited
• 1. GAPbuster Worldwide Malaysia Sdn Bhd
• 1. GAPbuster worldwide Pty Limited
• 1. Kabushiki Kaisha GAPbuster Japan

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 - 560 004

CIN - L72200MH1994PLC082110

Part I ₹ in lakhs, except per share data www.sonata-software.com, Tel : +91-080-67781999 Fax : +91-080-26601387, investor@sonata-software.com

	Statement of unaudited consolidated financial results for the quarter and six months ended September 30, 2020
			Quarter ended		Six months ended		Year ended
Sl No.	Particulars	September 30,2020	June 30,2020	September 30,2019	September 30,2020	September 30,2019	March 31,2020
		(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Audited)
	Revenue from operations	80,377
12	Other income	244	95,244313	70,3072,084	175,621557	157,7703,762	374,3265,840
3	Total Revenue (1 + 2)	80,621	95,557	72,391	176,178	161,532	380,166
	Expenses
4	(a) Purchases of Stock-in-Trade	50,731	66,541	38,064	117,272	93,647	241,579
	(b) Employee benefits expense	14,922	14,311	16,178	29,233	32,323	66,031
	(c) Finance costs	378	343	352	721	733	1,518
	(d) Depreciation and amortization expense	1,005	1,021	920	2,026	1,816	3,654
	(e) Other expenses	5,996	6,584	7,015	12,580	13,789	29,435
	Total expenses	73,032	88,800	62,529	161,832	142,308	342,217
5	Profit before tax (3-4)	7,589	6,757	9,862	14,346	19,224	37,949
6	Tax expense
	(1) Current tax	2,553	2,751	3,173	5,304	5,659	10,603
	(2) Deferred tax	(684)	(986)	(535)	(1,670)	(364)	(347)
7	Profit for the period (5-6)	5,720	4,992	7,224	10,712	13,929	27,693
8	Other comprehensive income
	1 (a) Items that will not be reclassified to profit or (loss)	303	317	44	620	(149)	(865)
	(b) Income tax relating to items that will not be reclassified
	to profit or (loss)	(73)	(84)	(12)	(157)	43	232
	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	1,320	(1,220)	31	100	(429)	323
	(b) Exchange differences on forward cover	2,378	868	(1,182)	3,246	(1,130)	(3,511)
	(c) Income tax relating to Items that will be
	reclassified to profit or (loss)	(942)	94	323	(848)	425	854
	Total	2,986	(25)	(796)	2,961	(1,240)	(2,967)
9	Total Comprehensive Income for the period (7 + 8)	8,706	4,967	6,428	13,673	12,689	24,726
	Of the Total Comprehensive Income above, total comprehensive income
	attributable to:
	Owners of the parent	8,706	4,967	6,428	13,673	12,689	24,726
		8,706	4,967	6,428	13,673	12,689	24,726
	Of the Total Comprehensive Income above, Profit for the period
	attributable to:
	Owners of the parent	5,720	4,992	7,224	10,712	13,929	27,693
		5,720	4,992	7,224	10,712	13,929	27,693
	Of the Total Comprehensive Income above, Other Comprehensive Income
	for the period attributable to:Owners of the parent	2,986	(25)	(796)	2,961	(1,240)	(2,967)
		2,986	(25)	(796)	2,961	(1,240)	(2,967)
10	Paid-up equity share capital (Face Value ₹ 1/-)	1,039	1,039	1,039	1,039	1,039	1,039
11	Other equity (Refer Note 7)	65,928	65,928	75,787	65,928	75,787	65,928
12	Earnings per equity share (of ₹ 1/- each) (Refer Note 6)
	(a) Basic	5.505.50	4.804.80	6.956.95	10.3110.31	13.4113.40	26.6626.66
	(b) DilutedSee accompanying notes to the consolidated financial results

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 - 560 004

CIN - L72200MH1994PLC082110

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

Part II			(₹ in lakhs)
	Consolidated Balance Sheet
Sl No.	Particulars	As atSeptember 30, 2020	As atMarch 31, 2020
	ASSETS
1	NON-CURRENT ASSETS
	(a) Property, Plant and Equipment	1,806	2,130
	(b) Right-of-use assets	9,205	9,729
	(c) Capital work-in-progress	2	-
	(d) Goodwill	17,480	15,578
	(e) Other intangible assets	5,180	2,377
	(f) Financial assets
	(i) Investments	1,000	873
	(ii) Other Financial Assets	3,573	3,655
	(g) Deferred tax assets (net)	2,251	2,439
	(h) Other non-current assets	8,366	5,906
	Total	48,863	42,687
2	CURRENT ASSETS
	(a) Financial assets
	(i) Investments	1,512	480
	(ii) Trade receivables	60,685	70,000
	(iii) Cash and cash equivalents	60,885	37,220
	(iv) Bank balances other than (iii) above	3,296	2,424
	(v) Other Financial Assets	3,069	4,326
	(b) Other current assetsTotal current assets	5,585135,032	4,509118,959
	TOTAL ASSETS	183,895	161,646
	EQUITY AND LIABILITIES
3	EQUITY
	(a) Equity Share capital	1,039	1,039
	(b) Other equity	79,526	65,928
	Total	80,565	66,967
	LIABILITIES
4	NON-CURRENT LIABILITIES
	Financial liabilities
	Other Financial Liabilities	10,667	10,676
		10,667	10,676
5	CURRENT LIABILITIES
	(a) Financial liabilities
	(i) Borrowings	14,401	8,600
	(ii) Trade payables	57,497	56,186
	(iii) Other Financial Liabilities(b) Other current liabilities	3,8587,775	6,4986,833
	(c) Provisions	2,813	2,293
	(d) Current tax liabilities (net)	6,319	3,593
	Total current liabilities	92,663	84,003
	TOTAL EQUITY AND LIABILITIES	183,895	161,646

The disclosure is an extract of the unaudited consolidated Balance Sheet as at September 30, 2020 and audited as at March 31, 2020 in compliance with Indian Accounting Standards ("Ind AS")

Consolidated Cash Flow Statement
		Six months ended
Sl No.	Particulars	September 30,2020	September 30,2019
1	A. CASH FLOW FROM OPERATING ACTIVITIES
	Net profit before tax	14,346	19,224
	Operating profit before working capital changes	17,501	18,750
	Net cash (used in)/ generated by operating activities	25,317	7,139
2	B. CASH FLOW FROM INVESTING ACTIVITIES	(6,511)	11,400
3	C. CASH FLOW FROM FINANCING ACTIVITIES	4,739	(13,009)
	Net increase/(decrease) in cash and cash equivalents(A+B+C)	23,545	5,530
	Opening cash and cash equivalents	37,221	17,432
	Exchange difference on translation of foreign currency cash and cash equivalents	119	45
	Closing cash and cash equivalents	60,885	23,007

The disclosure is an extract of the unaudited consolidated cash flow statement for the six months ended September 30, 2020 and September 30, 2019 in compliance with Ind AS 34 Interim financial reporting .

Notes : Notes: 100,000.00

• 1 These quarterly and six months ended unaudited consolidated financials 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 November 6, 2020.
• 2 Unaudited consolidated financial results include financial results of subsidiaries i.e, Sonata Information Technology Limited, Sonata Software North America Inc. (SSNA), 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, Sonata Software Solutions Limited, GAPbuster China Co. Ltd, GAPbuster Europe Limited, GAPbuster Inc., Gapbuster Limited, GAPbuster Worldwide Malaysia Sdn Bhd, GAPbuster worldwide Pty Limited, and Kabushiki Kaisha GAPbuster Japan.
• 3 Based on the financial performance of the Company, the Board at its meeting held today, approved an interim dividend of ₹ 4.00/- per share.
• 4 Sonata Europe Limited, a wholly-owned subsidiary of Sonata Software Limited has acquired 100% stake in GAPbuster Ltd, a UK registered Company on April 20,2020 for an investment of USD 4.8 million (approximately ₹ 3,632 lakhs) (net of working capital) including USD 0.5 million (approximately ₹ 378 lakhs) which is deferred consideration payable on the completion of one year.
• 5 The management has considered the possible effects that may result from COVID-19 in the preparation of these consolidated financial results including the recoverability of carrying amounts of financial and non-financial assets. In developing the assumptions relating to the recoverability 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.
• 6 EPS for quarterly and half-yearly periods are not annualised.
• 7 Balances for the quarter ended September 30, 2020, June 30, 2020 and September 30, 2019 represents balance as per the audited balance sheet for the year ended March 31, 2020 and March 31, 2019 respectively as required by SEBI (Listing and other disclosure requirements) regulations , 2015.
• 8 As the quarter and year-to-date figures are taken from the source and rounded to the nearest digits, the quarter figures in this statement added up to the figures reported for the previous quarters might not always add up to the year-to-date figures reported in this results.
• 9 (₹ in lakhs) The consolidated segment wise revenue and results are as follows :

Particulars	Quarter ended			Six months ended	Year ended
	September 30,	June 30,	September 30,	September 30,	September 30,	March 31,
	2020	2020	2019	2020	2019	2020
	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Audited)
1. Segment revenue
a. India	43,561	53,367	35,831	96,928	84,742	223,491
b. Other than India	37,596	42,333	35,360	79,929	74,319	152,997
Total	81,157	95,700	71,191	176,857	159,061	376,488
Less : Inter segment revenue	(780)	(456)	(884)	(1,236)	(1,291)	(2,162)
Revenue from operations	80,377	95,244	70,307	175,621	157,770	374,326
2. Segment results
Profit before tax and interest
a. India	1,394	1,399	1,430	2,795	3,094	7,166
b. Other than India	5,989	5,234	8,324	11,221	15,750	30,673
Total	7,383	6,633	9,754	14,016	18,844	37,839
Less: Finance costs	(378)	(343)	(352)	(721)	(733)	(1,518)
Add: Unallocable income net of unallocable expenditure	584	467	460	1,051	1,113	1,628
3. Profit before tax	7,589	6,757	9,862	14,346	19,224	37,949

				(₹ in lakhs)
Particulars	September 30,2020	June 30,2020	March 31,2020	September 30,2019
5. Segment assets
a. India	74,581	88,290	63,425	53,421
b. Other than India	80,375	84,219	74,779	76,137
c. Unallocable	28,939	27,110	23,442	21,394
Total Assets	183,895	199,619	161,646	150,952
6. Segment liabilities
a. India	52,173	78,433	52,474	39,854
b. Other than India	30,433	31,332	30,010	26,028
c. Unallocable	20,726	16,747	12,195	4,802
Total Liabilities	103,332	126,512	94,679	70,684
7. Capital Employed	80,565	73,107	66,967	80,268

FOR AND ON BEHALF OF THE BOARD OF DIRECTORS

SRIKAR PALEM REDDY

Digitally signed by SRIKAR PALEM REDDY Date: 2020.11.06 15:12:16

+05'30'

& CHIEF EXECUTIVE OFFICER

Place : Bengaluru P SRIKAR REDDY Date : November 6, 2020 MANAGING DIRECTOR

Sonata Software - Consolidated Q2 FY20-21 PAT at ₹ 57.2 Crores; 15% QoQ growth, declares interim dividend of ₹ 4 per share

Bengaluru, November 06, 2020

Sonata Software, a global IT services and technology solutions company, today reported its unaudited financial results for its 2nd quarter and six months ended 30th September, 2020.

								₹ in Crores
Description	For the Quarter ended					For the half year ended
	30-Sep-20	30-Jun-20	30-Sep-19	QoQ	YoY	30-Sep-20	30-Sep-19	YoY
Revenues
International IT Services	288.1	275.8	312.6	4%	-8%	563.9	617.1	-9%
Domestic- Products & Services	523.5	681.3	399.1	-23%	31%	1,204.7	973.2	24%
Consolidated	803.8	952.4	703.1	-16%	14%	1,756.2	1,577.7	11%
EBITDA
International IT Services	70.4	64.7	89.5	9%	-21%	135.0	173.9	-22%
Domestic- Products & Services	19.6	16.9	22.5	16%	-13%	36.5	44.9	-19%
Consolidated	89.7	81.2	111.4	10%	-19%	170.9	217.7	-22%
PAT
International IT Services	43.6	38.3	56.1	14%	-22%	81.9	109.5	-25%
Domestic- Products & Services	13.6	11.6	16.1	17%	-15%	25.2	29.8	-15%
Consolidated	57.2	49.9	72.2	15%	-21%	107.1	139.3	-23%

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

These last two quarters have been unprecedented in the speed of evolution of events and the impact it has had on businesses globally. We as an organization have acted with great resilience and have strengthened systems and processes to operate effectively across all our business functions. As mentioned, our overall strategy of creating digital enterprises by creating platform through our unique PlatformationTM methodology is more relevant in the current context with more digitization and automation. The results this quarter reflect a successful response and execution of strategy aimed to grow with existing clients and add new clients. With a clear visibility in the immediate future, we are now focused on investing for long term growth in talent, IP and competency development.

Performance Highlights for the quarter:

• Consolidated:

• Revenues at ₹ 803.8 Crores
• EBITDA at ₹ 89.7 Crores : growth of 10% QoQ
• PAT at ₹ 57.2 Crores : growth of 15% QoQ
• Cash and cash equivalents (net of borrowings) ₹ 508 Crores

• International IT Services:

• Revenues at ₹ 288.1 crores; growth of 4% QoQ
• EBITDA at ₹ 70.4 Crores : growth of 9% QoQ
• PAT at ₹ 43.6 Crores : growth of 14% QoQ
• Addition of 10 new customers

• Domestic Products & Services :

• Revenues at ₹ 523.5 crores
• EBITDA at ₹ 19.6 Crores; growth of 16% QoQ
• PAT at ₹ 13.6 Crores : growth of 17% QoQ

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 560004, India Tel: +91 80 67781999 nandita.v@sonata-software.com