Tera Software Ltd. — Annual Report 2019

May 24, 2019

TERA SOFTWARE LIMITED TERA SOFTWARE LIMITED

8-2-293t82tN1107, Plot No. 1107, Road No. 55, Jubilee Hills, Hyderabad-S00 033, Telangana, INDIA # 8-2-293/82/A/1107, Plot No. 1107, Road No. 55, Jubilee Hills, Hyderabad-500 033, Telangana, INDIA

Date: 24.05.2019 Date: 24.05.2019

To, BSE Limited P.J. Towers Dalal Street, Mumbai - ⁴⁰⁰⁰⁰¹ To, BSE Limited P.J. Tower^s Dalal Street, Mu^mbai - 400001

National Stock Exchange of lndia Limited Exchange Plaz4 Bandra Kurla complex Bandra(E), Mumbai - 40005 I National Stock Ex^change ^of India Limited Ex^change Plaza, Bandra Ku^rl^acompl^ex Bandra(E), Mu^mbai - 400051

Scrip:533982 Scrip: 533982 Symbol: TERASOFT Sy^mbol: TERASOFf

Dear Sir/Tvladam, Dear Sir/Madam,

Sub: Outcome of Board Meeting Sub: Outcome of Board Meeting

The Board of Directors at its meeting held today, i.e. Friday, 24h May, 2Ol9: The Board of Directors at its meeting held tod^ay, i.e. Frid^ay, 24 ¹h May, 2019:

• l. Considered and approved the Annual Audited Financial Results of the Company for the 4ft Quarter and the Year ended 3lst March, 2019. 1. Considered and approved the Annu^al Audited Financial Results of the Company for th^e 4th Quarter and the Year ended 31st March, 2019.
• 1. Appointed lWs. C.V. Reddy K. & Associates, Company Secretaries, Hyderabad as the Secretarial Auditor of the Company for the Financial Year 2019-20 to conduct the Secretarial Audit ofthe Company. 2. Appointed Mi^s. C.V. Reddy K. & Associates, Company Secretaries, Hyderabad as th^e Secretarial Auditor of the Compaⁿy for the Financial Year 2019-20 to conduct th^e Secretarial Audit of the Compaⁿy.
• 1. Appointed IWs. Darapaneni & Company, Chartered Accountants, Hyderabad as the Internal Auditor of the Company for the Financial Year 2019-20 to conduct the Internal Audit ofthe Company. ³. Appointed Mi^s. Darapaneni & Compaⁿy, Chartered Accountants, Hyderabad as th^e Internal Auditor of the Compaⁿy for the Financial Year 2019-20 to conduct the Internal Audit of the Compaⁿy.

In terms of Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, a copy of the said Results and Auditors' Report issued by IWs. Mullapudi & Co., Chartered Accountants, is enclosed herewith. In terms of Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, a copy of the said Results and Auditors' Report issu^ed by Mi^s. Mullapudi & C^o., Chartered Accountants, is enclosed herewith.

The Board Meeting commenced at 8:00 A.M. and concluded at 9:40 A.M. The Board Meeting commenced at 8:00 A.M. ^and concluded at 9:40 A.M.

Kindly take the above information on your record. Kindly take the ab^ov^einformation oⁿyour record.

Yours faithfully, For Tera Sq\$ware Limited ^Yours faithfully,

Gopichand Tummala Vice Chairman & Managing Director Gopichand Tummal^a Vice Chairman & Managing Directo^r

cr N-172200TG 1 994P1C01 839 ¹ CIN-L72200TG1994PLC018391

TERA SOFTWARE LIMITED TERA SOFTWARE LIMITED

8-2-2931821N1107, Plot No. 1107, Road No. 55, Jubilee Hills, Hyderabad-5OO 033, Telangana, INDIA # 8-2-293/82/A/1107, Plot No. 1107, Road No. 55, Jubilee Hills, Hyderabad-!500 033, Telangana, INDIA

Date: 24.05.2019 Date: 24.05.2019

To, BSE Limited P.J. Towers Dalal Street, Mumbai - ⁴⁰⁰⁰⁰¹ To, BSE Limited P.J. Towers Dalal Street, Mumbai - 400001

National Stock Exchange of lndia Limited Exchange Plaz4 Bandra Kurla complex Bandra(E), Mumbai - ⁴⁰⁰⁰⁵¹ National Stock Exchange of India Limited Exchange Plaza, Bandra Kurla complex Bandra(E), Mumbai - 400051

Scrip: 533982 Scrip: 533982

Symbol: TERASOFT Symbol: TERASOFT

Sub: Declaration for the Audit Report with un-modified opinion on Annual Audited IND AS Financial Statements for the Financials Year ended March 31,2019. Sub: Declaration for the Audit Report with on-modified opinion on Annual Audited IND AS Financial Statements for the Financials Year ended March 31, 2019.

It is hereby declared and confirmed that the Statutory Auditors of the Company, IWs Mullapudi & Co, Chartered Accountants, Hyderabad; has issued the Audit neport with unmodified opinion on the Annual Audited IND AS Financial Statements for the year ended 3l't March, 2019. It is hereby declared and confirmed that the Statutory Auditors of the Company, Mis Mullapudi & Co, Chartered Accountants, Hyderabad; has issued the Audit Report with unmodified opinion on the Annual Audited IND AS Financial Statements for the year ended 3 !81 March, 2019.

This declaration is furnished pursuant to Regulation 33(3)(d) of the SEBI (Listing obligations and Disclosure Requirements) Regulations,20l5 as amended by the SEBI (Listing obligations and Disclosure Requirements) (Amendment)Regulations,20l6 vide Notification NRO/GN/2016- ¹⁷/001 dated 25 .05 .2016. This declaration is furnished pursuant to Regulation 33(3)(d) of the SEBI (Listing obligations and Disclosure Requirements) Regulations,2015 as amended by the SEBI (Listing obligations and Disclosure Requirements) (Amendment)Regulations,2016 vide Notification NRO/GN/2016- 17/001 dated 25.05.2016.

Yours faithfully, For Tera Software Limited Yours faithfully, For Tera Software Limited

�

Gopichand Tummala 'Vice Chairman & Managing Director Gopich and Tummala · Vice Chairman & Managing Director

ct N-172200TG1 994P1C01 8391 CIN-L 72200TG 1994PLC018391

TERA SOFTWARE LIMITED FINANCIAL HIGHLIGHTS FOR THE YEAR ENDING 31ST MARCH, 2019

Financial Highlights:

• Turnover increased by 21. 09% from Rs. 14571.74 lakhs to Rs. 17644.91 Lakhs
• EBITDA increased by 29.66% from Rs. Rs. 1203.38 lakhs to Rs. 1560.26 lakhs
• Profit Before Tax (PBT) increased 158.91% from Rs. 230.30 Lakhs to 596.27 Lakhs
• Profit After Tax increased 133. 29% from Rs. 157.6 Lakhs to Rs. 367.66 Lakhs
• EPS has improved and reached to 2.94 this year from 1.26 for the previous year.

MULLAPUDI & CO,, CHARTERED ACCOUNTANTS MULLAPUDI & CO., CHARTERED ACCOUNTANTS

206, Hanuman Mansion, S-3--|.100/8/206, Sri Nagar Colony, Hyderabad - ⁵⁰⁰⁰⁷³ # 206, Hanuman Mansion, 8-3-11 OO/B/206, Sri Nagar Colony, Hyderabad - 500073.

Tel: 040-237 4 2536,94920 63246 E-mail : mul lapudivr@rediffmai l. com Tel: 040-2374 2536, 94920 63246 E-mail: mullapudiv^r@rediffmail.co^m

Auditor's Report on Quarterly Financial Results and Year to Date Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obtigations and Disclosure Requirements) Regulations, 2015, as amended Auditor's Report on Quarterly Financial Results and Year to Date Results of the Company Pursuant to the Regulation 33 of the SEBI {Listing Obligations and Disclosur^e Requirements) Regulations, 2015, as amended

To To

The Board of Directors of Tera Software Limited The Board of Directors of Tera Software Limited

We have audited the accompanying statement of quarterly Standalone lnd AS financial results of Tera Software Limited for the quarter ended 31"t March 2019 and the year to date results for the period 01"t April 2018 to 31't March 2019, attached herewith, being submitted by the company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. These quarterly financial results as well as the year to date financial results have been prepared on the basis of the interim financial statements, which are the responsibility of the company's management. Our responsibility is to express an opinion on these financial results based on our audit of such interim financial statements, which have been prepared in accordance with the recognition and measurement principles laid down in lndian Accounting Standard 34 (lnd AS 34) for lnterim Financial Reporting, prescribed, under Section 133 of the Companies Act, 2013 read with relevant rules issued thereunder; or by the lnstitute of Chartered Accountants of lndia, as applicable and other accounting principles generally accepted in lndia. We have audited the accompanying statement of quarterly Standalone Ind AS financial result^{s o}f Tera Software Limited for the quarter ended 31st March 2019 and the year to date results fo^{r t}he period 01st April 2018 to 31st March 2019, attached herewith, being submitted by th^{e c}ompany pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. These quarterly financial results as well as th^e year to date financial results have been prepared on the basis of the interim financial ^statements, which are the responsibility of the company's management. Our responsibility is t^{o e}xpress an opinion on these financial results based on our audit of such interim financial ^statements, which have been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34 (Ind AS 34) for Interim Financial Reporting, prescribed, under Section 133 of the Companies Act, 2013 read with relevant rule^s issued thereunder; or by the Institute of Chartered Accountants of India, as applicable and othe^{r a}ccounting principles generally accepted in India.

We conducted our audit in accordance with the auditing standards generally accepted in lndia. Ttiose standards require that we plan and perform the audit to obtain reasonable assurance about whether the lnd AS financial results are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts disclosed as Standalone lnd AS financial results. An audit also includes assessing the accounting principles used and significant estimates made by management. We believe that our audit provides a reasonable basis for our opinion. We conducted our audit in accordance with the auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assuranc^e about whether the Ind AS financial results are free of material misstatement. An audit includes ^examining, on a test basis, evidence supporting the amounts disclosed as Standalone Ind AS financial results. An audit also includes assessing the accounting principles used and significan^{t e}stimates made by management. We believe that our audit provides a reasonable basis for ou^{r o}pinion.

ln our opinion and to the best of our information and according to the explanation given to us these quarterly Standalone lnd AS flnancial results as well as the year to date results; In our opinion and to the best of our information and according to the explanation given to u^{s t}hese quarterly Standalone Ind AS financial results as well as the year to date results;

• i) are presented in accordance with the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 in this regard; and ⁱ) are presented in accordance with the requirements of Regulation 33 of the SEB^I (Listing Obligations and Disclosure Requirements) Regulations, 2015 in thi^{s r}egard; and
• ii) give a true and fair view of the net profit and other financial information for the quarter ended 31't March 2019 as well as the year to date results for the period from 1"tApril2018 to 31"tMarch 2019. ⁱi) give a true and fair view of the net profit and other financial information for th^e quarter ended 31st March 2019 as well as the year to date results for the period ^from 1st April 2018 to 31st March 2019.

For Mullapudi & Co., Chartered Accountants Regn. No:0067075 na pivaram Apparao 4 Place: Hyderabad Partner Membership No: 226476

Date: 24.05.2019 Date: 24.05.2019 Place: Hyderabad

121334LTC01933T

8-2-293/82/A/1107, Plot no 1107, Road no 55, Jubilee Hills, Hyderabad-33.

STATEMENT OF FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED 31ST MARCH 2019

					Rupees in Lakhs
				Corresponding 3	Year to date	Year to date
		Quarter ended	Preceding	Months ended in	figures for the	figures for the
SI.	PARTICULARS		Quarter ended	the previous	current year	previous year
No.				year	ended	ended
		31-Mar-19	31-Dec-18	31-Mar-18	31-Mar-19	31-Mar-18
		AUDITED	UNAUDITED	AUDITED	AUDITED	AUDITED
-1	Revenue from operations	10,771.63	1,996.70	5,667.41	17,644.91	14,571.74
Ш	Other Income	65.75	62.17	60.54	249.80	223.29
Ш	Total Income (I+II)	10,837.38	2,058.87	5,727.95	17,894.71	14,795.03
IV	Expenses
	Cost of Materials consumed
	Purchases of Stock-in-Trade	7,315.32	548.97	3,964.04	9,232.71	7,764.80
	Changes in inventories	(18.98)	(219.72)	(366.64)	151.54	(602.72)
	Technical & Operation expense	1,716.02	744.65	910.30	3,709.38	3,487.37
	Employee benefit expense	778.33	657.06	621.36	2,587.75	2,571.21
	Finance costs Depreciation & amortisation expense	205.95 64.00	179.18 62.69	152.19	709.30	718.89 254.19
	Other Expenses	394.81	35.32	63.45 201.60	254.69 653.07	370.99
	Total expenses (IV)	10,455.45	2,008.15	5,546.30	17,298.44	14,564.73
$\vee$	Profit/(Loss) before Exceptional Items and Tax (III-IV)	381.93		181.65		230.30
VI	Exceptional Items		50.72		596.27
VII	Profit/(Loss) before Tax (V-VI)	381.93	50.72	181.65	596.27	230.30
	VIII Tax expense
	1) Current Tax	223.65	27.61	54.70	269.15	89.13
	2) Tax Expenses relating to Earlier years					(12.00)
	3) Deferred Tax	(81.99)	(13.40)	12.13	(40.54)	(4.43)
IX	Profit/Loss for the period from continuing operations
		240.27	36.51	114.82	367.66	157.60
X	Profit/(Loss) from discontinuing operations
XI	Tax expense of discontuing operations
	Profit/(Loss) from discontinuing operations (after tax) (X-
XII	(IXI
XIII	Profit/(Loss) for the period (IX-XII)	240.27	36.51	114.82	367.66	157.60
XIV	Other Comprehensive Income
	A (i) Items that will not be reclassified to profit or loss
	(ii) Income Tax relating to items that will not be
	reclassified to profit or loss
	Add: B (i) Items that will be reclassified to profit or loss	16.35
	Less: (ii) Income Tax relating to items that will be				16.35
	reclassified to profit or loss	5.46			5.46
	XV Total Comprehensive Income for the period (comprising
	Profit (Loss) and Other comprehensive Income for the
	period	251.16	36.51	114.82	378.55	157.60
	Earning Per equity share (for continuing operations):
XVI
	$(1)$ Basic	1.92	0.29	0.92	2.94	1.26
	(2) Diluted	1.92	0.29	0.92	2.94	1.26
	Earning Per equity share (for discontinued & Continuing
	XVII operations):
	(1) Basic	1.92	0.29	0.92	2.94	1.26
	(2) Diluted	1.92	0.29	0.92	2.94	1.26

Bland

TERA SOFTWARE LTD. CIN L72200TG1994PLC018391 #8-2-293/82/A/1107, Plot no 1107, Road no 55, Jubilee Hills, Hyderabad-33. SEGMENT WISE REVENUE AND RESULTS

					Rupees in Lakhs
				Corresponding 3	Year to date	Year to date
	PARTICULARS	Quarter ended	Preceding	Months ended in	figures for the	figures for the
SI.			Quarter ended	the previous	current year	previous year
No.				year	ended	ended
		31-Mar-19	31-Dec-18	31-Mar-18	31-Mar-19	31-Mar-18
		AUDITED	UNAUDITED	AUDITED	AUDITED	AUDITED
$\mathbf{1}$	Segment Revenue
	a) Integrated Solutions Division	6,974.58	95.77	4,600.34	8,131.84	8,221.93
	b) Technical Division	644.43 3,152.62	618.63	622.66	2,602.50	2,636.08
	c) Projects Division		1,282.30	444.41	6,910.57	3,713.73
	Net sales/Income from operations	10,771.63	1,996.70	5,667.41	17,644.91	14,571.74
	Segment Results [Profit / (Loss) before Tax and Interest
$\overline{2}$	from each Segment]
	a) Integrated Solutions Division	277.49 71.97	23.73	2.82	79.63	995.42
	b) Technical Division c) Projects Division	646.83	55.55 213.50	58.03 500.56	300.42 1,592.50	279.74 122.09
	Total	996.29	292.78
				561.41	1,972.55	1,397.25
	Less: i) Interest Expenses	205.95	179.18	152.19	709.30	718.89
	ii) Un-allocable expenditure (Net) Add: Interest and Other Income	474.16 65.75	125.05 62.17	288.11 60.54	916.78 249.80	671.35 223.29
	Total Profit/(Loss) Before Tax	381.93	50.72	181.65	596.27	230.30
	Segment Assets
	Integrated Solutions Division	1,519.11	877.77	605.80	1,519.11	1,551.94
	Technical Division	780.76	717.35	765.70	780.76	765.70
	Projects Division	11,419.97	9,682.02	11,044.44	11,419.97	10,098.31
	Unallocable	5,453.94	5,188.26	4,739.89	5,453.94	4,739.88
	Total	19,173.78	16,465.40	17,155.83	19,173.78	17,155.83
	Segment Liabilities
	Integrated Solutions Division	677.89	373.66	652.28	677.89	652.28
	Technical Division	559.06	810.86	758.69	559.06	758.69
	Projects Division	2,256.91	804.43	882.58	2,256.91	882.58
	Unallocable	15,679.92	14,476.45	14,862.28	15,679.92	14,862.28
	Total	19,173.78	16,465.40	17,155.83	19,173.78	17,155.83
	(Segment Assets - Liabilities)
	Integrated Solutions Division	841.22	504.11	(46.48)	841.22	899.66
	Technical Division	221.70 9,163.06	(93.51)	7.01	221.70	7.01
	Projects Division Unallocable	(10, 225.98)	8,877.59	10,161.86 (10, 122.39)	9,163.06 (10, 225.98)	9,215.73 (10, 122.40)
			(9, 288.19)
	Total			٠	$\overline{\phantom{a}}$

Bland

STATEMENT OF ASSETS AND LIABILITIES

				Rupees In lakh
Particulars Particulars	Audited Audited 31st March 2019		Audited Audited 31st March 2018
I.ASSETS lt. AssETs	31st March 2019			31st March 2018
1. Non-current assets 11. Non-current a.r"t
(i) PronertV, Plant & Equipment (i) Property, Plant & Equipment	3,170.43		3,414.02
(ii) Financial Assets (ii) rinanciat nssets	3,170.43		3,414.02
(a) Other financial assets (a) Other finani'al assets	300.87		223.95
(iii) other non current assets (iii) Other non current assets	300.87 294.38		223.95 69.74
(iv) Deferred tax Asset (net) (iv) Deferred tax Asset (net)	294.38 235.03		69.74 199.95
	235.03	4,000.71	199.9s	3,907.66
2. Current assets 2. Current assets		4,OOO.7r		3,907.66
(i) Inventories (i) lnventories	1,063.44 L,O63.44		1,214.98
(ii) Financial Assets (ii) Financial Assets			1,2t4.98
(a) Trade receivables (a) Trade receivables	13,564.53 13,564.53		11,638.63
(b) Cash and Cash Equivalents (b) Cash and Cash Equivalents	1,306.73 1,306.73		11,638.63 968.40
(c) other financial assets (c) Other financial assets	22.22 22.22		968.40 14.24 14.24
(iii) Other current assets (iii) Other current assets	842.31 842.37		915.80 915.80
Total		16,799.23 t6,7ss.Bl		14,752.05 14,752.05 I
totat		20,799.94 20,799.94		18,659.71 18,659.71
II EQUITY AND LIABILITIES
A Equity Equity
(a) Equity Share Capital (a) Equity Share Capital	1,251.19		1,251.19
(b) Other Equity (b) Other Equity	1,251.L9 8,995.88		t,257.79 8,617.32
	&99s.88	10,247.07	8,617.32	9,868.51
B Liabilities Liabilities		10,247.07		9,868.51
1. Non-current liabilities 1. Non-current liabilitles
(i) Financial liabilities (i) Financial liabilities
(a) Long-term borrowings (a) [ong-term borrowings	102.37 LO2.37		106.96
(ii) Other long term liabilities (ii) Other long term tiabilities	-		106.96 -
(iii) Long-term provisions (iii) Long-term provisions	126.17 t26.t7		125.48
(iv) Deferred tax liabilities (net) (iv) Deferred tax liabilities (net)	-		125.48 -
		228.54 228.54		232.44
2. Current liabilities 2. Current liabiliti€s				232.44
(i) Financial liabilities (i) Financial liabilities
(a) Short-term borrowings (a) Short-term borrowings	4,954.23 4,954.23		4,308.83 4,308.83
(b) Trade payables (b) Trade payables
Total Outstanding dues to Micro enterprises and small Total Outstanding dues to Micro enterprises and small
enterprises enterprises	238.78 238.78		-
Total Outstanding dues to creditors other than Micro Total Outstanding dues to creditors other than Micro
enterprises and small enterprises enterprises and small enterprises	4,557.37		3,170.04
(c) Other financial liabilities (c) Other financial liabilities	4,557.37 167.47 L67.47		3,770.04 138.73
(ii) Other current liabilities (ii) Other current liabilities	254.82 2s4.82		138.73 699.27
(iii) Short-term provisions (iii) Short-term provisions	151.66 151.66		699.27 241.89
		10,324.33 10,324.33	24t.89	8,558.76
Total Total		20,799.94 20,799.94		&ss8.76 18,659.71 18,659.71

Notes: Notes:

• ¹The audi'ted financial results for the quarter and year ended 31st March 2019 have been reviewed by the Audit committee and were approved by the Board of Directors of the Company at the meeting held on 24th May 2019 1 The audited financial results for the quarter and year ended 31st March 2019 have been reviewed by the Audit Committee and were approved by the Board of Directors of the Company at the meeting held on 24th May 2019
• ²This statement is as per regulation 33 of the sEBl (Listing obligationsand disclosure Requirements) Regulations, 2015. These audited financials results of the company were prepared in accordance with the lndian Accounting standards prescribed under section 133 of the companies Act, 2013 (,the act") read with relevant rules issued there under ("lnd As") and other accounting principles generally acceprted in lndia and guidelines issued by the Securities and Exchange Boarclof lndia (,,SEBl,). 2 This statement is as per regulation 33 of the SEBI (Listing obligationsand disclosure Requirements) Regulations, 2015. These audited financials results of the Company were prepared in accordance with the Indian Accounting Standards prescribed under section 133 of the Companies Act, 2013 ("the act") read with relevant rules issued there under ("Ind AS") and other accounting principles generally acceprted in India and guidelines issued by the Securities and Exchange Boardof India ("SEBI").
• ²corresponding quarter/year figures heve been re-grouped /re-classified wherever necessary to confirm to the classification of the current period. 2 Corresponding quarter/year figures heve been re-grouped /re-classified wherever necessary to confirm to the classification of the current period.

Fo<T,,�•••

Date : 24th May 2019 Vice Chairman & Managing Director T. Gopichand Vice Chairman & Managing Director DIN : 00107886

Place: Hyderabad Place: Hyderabad Date : 24th May 2019