Tera Software Ltd. — Annual Report 2020

Jun 30, 2020

TERA SOFTWARE LIMITED

8-2-293/82/A/1107, Plot No. 1107, Road No. 55, Jubilee Hills, Hyderabad-?OO 033, Telangana, INDIA.

Date: 30.06.2020 To, BSE Limited P.J. Towers Dalal Street, Mumbai - 400001 Scrip: 533982

National Stock Exchange oflndia Limited Exchange Plaza, Bandra Kurla complex Bandra(E), Mumbai - 400051 Symbol: TERASOFT

Dear Sir /Madam,

Sub: Outcome of Board Meeting

The Board of Directors at its meeting held today, i.e. Tuesday, 30th June, 2020:

• 1. Considered and approved the Annual Audited Financial Results of the Company for the 4th Quarter and the Year ended 31st March, 2020.
• 1. Appointed M/s. C.V. Reddy K. & Associates, Company Secretaries, Hyderabad as the Secretarial Auditor of the Company for the Financial Year 2020-21 to conduct the Secretarial Audit of the Company.
• 1. Appointed M/s. Darapaneni & Company, Chartered Accountants, Hyderabad as the Internal Auditor of the Company for the Financial Year 2020-21 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 M/s. Mullapudi & Co., Chartered Accountants, is enclosed herewith.

The Board Meeting commenced at 1:30 P.M. and concluded at 4:00 P.M.

Kindly take the above information on your record.

Yours faithfully, ForT(;J;Limited

Gopichand Tummala l Vice Chairman & Managing Director

TERA SOFTWARE LIMITED # 8-2-293/82/A/1107,

Plot No. 1107, Road No. 55, Jubilee Hills, Hyderabad-500 033, Telangana, INDIA.

Date: 30.06.2020

BSE Limited P.J. Towers Dalal Street, Mumbai - 400001 Scrip: 533982

National Stock Exchange oflndia Limited Exchange Plaza, Bandra Kurla complex Bandra(E), Mumbai - 400051 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, 2020.

It is hereby declared and confirmed that the Statutory Auditors of the Company, M/s 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 31st March, 2020.

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 /001dated25.05.2016.

Vice Chairman & Managing Director

CIN: L72200TG1994PLC018391

MULLAPUDI & Co., CHARTERED ACCOUNTANTS

Flat No 1 A, Rama Apartments, Plot No 84, Srinagar Colony, Hyderabad - 500073

Tel: 040-2373 5095, 94920 63246 E-mail: ca.mullapudi@gmail.com

Independent auditor's report on the standalone quarterly financial results and Year to Date Results of the company pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosures Requirements) Regulation~, 2015

INDEPENDENT AUDITOR'S REPORT ON AUDIT OF STANDALONE FINANCIAL STATEMENTS

TO THE BOARD OF DIRECTORS OF TERA SOFTWARE LIMITED,

Opinion

We have audited the accompanying standalone quarterly financial results of M/ s Tera Software Limited (the company) for the quarter ended 31st March 2020 and the year to date results for the period from 1st April 2020 to 31st March 2020, attached herewith, being submitted by the company pursuant to the requirement of Regulation 33 of the SEBI (listing Obligations and disclosure Requirements ) Regulations 2015 as amended ('Listing Regulations')

In our opinion and to the best of our information and according to the explanations given to us these standalone financial results:

(i) are presented in accordance with the requirements of regulation 33 of the listing regulations in this regard; and

(ii) gives a true and Fair view in conformity with the recognition and measurement principles laid down in the applicable accounting standards, and other accounting principles generally accepted in India, of net profit and other Comprehensive income and other financial information for the quarter ended 31st March 2020 as well as the year to date results for the period from 1st April, 2019 to 31st March, 2020

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013 ("ACT"). Our responsibilities under those Standards are further described in the Auditors Responsibilities for the Audit of the Standalone Financial Results section of our report. We are independent of the company, is in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial Results under the provisions of the Companies Act, 2013 and the rules there under, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we obtained is sufficient and appropriate to provid -lej · or our opinion.

\/ ._\ NV'r q' 00 ~ yderabad ~

Management's Responsibilities for the Standalone Financial Results

These quarterly financial results as well as the year to date Standalone financial results have been prepared on the basis of the irlterim financial statements. The Company's Board of Directors are responsible for the preparation and presentation of these financial results 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 Indian Accounting Standards 34, 'Interim financial reporting' .prescribed under section 133 of the Act read with relevant rules issued there under and other accounting principles generally accepted in India and in compliance with Regulation 33 of the Listing Regulations. The Responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the company and for preventing and deducting 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 accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial results that give a true and Fairview and are free from material misstatements, 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 company's financial reporting process.

Auditor's Responsibilities for the Audit of the Standalone Financial Results

Our objectives are to obtain reasonable assurance about whether the standalone financial results as a whole are 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 expected to influence the economic decisions of users taken on the basis of these standalone financial results.

As part of an audit in accordance with SAs, we exercise professional j~~im~• professional skepticism throughout the audit. We also: S''v ⁰

yderabad ~

• Identify and assess the· risks of material misstatements of the 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, misrepresentation, or the override of internal control.
• 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 and related, disclosures made by the Board of Directors.
• 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 group and its associates and jointly controlled entities 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 standalone financial results 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 standalone financial results, including the disclosures, and whether the standalone financial results represent the underlying transactions and events in a manner that achieves fair representation.

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.

Partner

M. No: 226476 UDIN: 20226476AAAAA U2065

Place: Hyderabad Date:30.06.2020

TERA SOFTWARE LIMITED CIN L 72200TG 1994PLC018391 #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 2020

Rupees in Lakhs

SI.	PARTICULARS No. -	Quarter ended 31.03.2020 AUDITED	Preceding 31.12.2019 UNAUDITED	Corresponding 3 Months ended Quarter ended in the previous year 31.03.2019 AUDITED	Figures for the year ended 31.03.2020 AUDITED	Figures for the year ended 31.03.2019 AUDITED
	Revenue from operations I	9,225.06	7,087.25	10,771.64	26,897.37	17,644.91
	II. Other Income	79.93	76.04	65.75	301.57	249.80
	m: Total Income (1+11)	9,304.99	7,163.29	10,837.39	27,198.94	17,894.71
	IV Expenses
	Purchases	38.41	37.26	7,023.76	1,576.62	8,868.86
	Changes in inventories	143.88	149.82	(18.98)	656.55	151.54
	Technical & Operation expense	7,099.52	5,429.16	2,007.38	18,067.80	4,071.18
	Employee benefit expense	842.68	837.67	778.33	3,417.44	2,587.75
	Finance costs	242.04	219.37	205.95	927.38	709.30
	Depreciation & amortisation expense	16.55	16.27	64.00	80.60	254.69
	Other Expenses	598.90	296.08	395.02	1,486.04	655.14
	Total expenses (IV)	8,981.98	6,985.63	10,455.46	26,212.43	17,298.46
	Profit/(Loss) before Exceptional Items and
	v Tax (III-IV)	323.01	177.66	381.93	986.51	596.25
	VI Exceptional Items	-	-	-	-	-
	VII Profit/(Loss) before Tax (V-Vl)	323.01	177.66	381.93	986.51	596.25
	VIII Tax expense
	l) Current Tax	109.91	81.44	223.65	352.91	269.15
	2) Tax Expenses relating to Earlier years 3) Deferred Tax	- ( 4.31)	- (38.94)	- (81.99)	- (18.88)	- (40.54)
	IX Profit/Loss for the period from continuing
	operations	217.41	135.16	240.27	652.48	367.64
	Profit/(Loss) from discontinuing operations
	x	-	-	-	-	-
	XI Tax expense of discontuing operations	-	-	-	-	-
	Profit/(Loss) from discontinuing operations
	XII (after tax) (X-XI)	-	-	-	-	-
	XIII Profit/(Loss) for the neriod (IX-XII)	217.41	135.16	240.27	652.48	367.64
	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	(23.02)	-	16.35	(23.02)	16.35
	Less: (ii) Income Tax relating to items that
	will be reclassified to profit or loss		(5.79) -	5.46	(5.79)	5.46
	xv Total Comprehensive Income for the period
	(comprising Profit (Loss) and Other
	comprehensive Income for the period
		200.18	135.16	251.16	635.25	378.53
	Earning Per equity share (for continuing
	XVI operations): (1) Basic		1.74
	(2)Diluted		1.74	1.08 1.92 1.92	5.21	2.94 5.21 2.94
	Earning Per equity share (for discontinued			1.08
	XVI & Continuing operations):
	(l) Basic		1.74	1.08 1.92	5.21	2.94
	(2)Diluted		1.74	1.08 1.92		5.21 2.94
		~ For Ter	y mited are

IVC Ull~Directnr

1~·

TERA SOFTWARE LTD. CIN L 72200TG1994PLC018391 #8-2-293/82/A/1107, Plot no 1107, Road no 55, Jubilee Hills, Hyderabad-33. SEGMENT WISE REVENUE AND RESULTS

				Corresponding	Rupees m Year to date	a . L kh s Year to date
			Preceding		3 Months ended figures for the figures for the
		Quarter ended	Quarter ended	in the previous	current year	previous year
	SI. PARTICULARS			year	ended	ended
No.				31.03.2019	31.03.2020	31.03.2019
		31.03.2020 AUDITED	31.12.2019 UNAUDITED	AUDITED	AUDITED	AUDITED
	Segment Revenue
	1 • a) Integrated Solutions Division		8.48 144.42	6,974.58	1,811.20	8,13,1.84
	;. b) Technical-Division	615.32	608.03	644.43	2,422.45	2,602.50
	c) Projects Division	8,601.26	6,334.80	3,152.63	22,663.72	6,910.57
	Net sales/Income from operations	9,225.06	7,087.25	10,771.64	26,897.37	17,644.91
	Segment Results [Profit I (Loss) before Tax
	and Interest from each Segment] 2
	a) Integrated Solutions Division	(110.43)	146.11	413.64	263.89	91.30
	b) Technical Division	75.30	72.67	71.97	291.27	300.42
	c) Projects Division	862.52	407.34	510.68	2,066.75	1,778.48
	Total	827.39	626.12	996.29	2,621.91	2,170.20
	Less: i) Interest Expenses	242.04	219.37	205.95	927.38	709.30
	ii) Un-allocable expenditure (Net)	342.27	305.13	474.16	1,009.59	1,114.45
	Add: Interest and Other Income	79.93	76.04	65.75	301.57	249.80
	Total Profit/(Loss) Before Tax	323.01	177.66	381.93	986.51	596.25
	Segment Assets
	Integrated Solutions Division	265.44	375.34	1,519.11	265.44	1,519.11
	Technical Division	1,099.68	999.27	780.76	1,099.68	780.76
	Projects Division	15,544.41	15,613.83	11,419.97	15,544.41	11,419.97
	Unallocable	6,201.29	6,023.17	5,453.94	6,201.29	5,453.94
	Total	23,110.82	23,0ll.61	19,173.78	23,ll0.82	19,173.78
	Segment Liabilities
	Integrated Solutions Division	481.28	527.27	789.45	481.28	789.45
	Technical Division	1,094.17	928.61	559.06	1,094.17	559.06
	Projects Division	6,405.24	5,051.48	2,156.60	6,405.24	2,156.60
	Unallocable	15,130.13	16,504.25	15,668.67	15,130.13	15,668.67
	Total	23,110.82	23,011.61	19,173.78	23,110.82	19,173.78
	(Segment Assets - Liabilities)
	Integrated Solutions Division	(215.84)	(151.93)	729.66	(215.84)	729.66
	Technical Division Projects Division	9,139.17	5.51 70.66 10,562.35	221.70 9,263.37	5.51 9,139.17	221.70 9,263.37
	Unallocable	(8,928.84)	(10,481.08)	(10,214.73)	(8,928.84)	(10,214.73)
	Total	-	~ -	-	-

VC and Manusdnr! f)i~f'r'''"

STATEMENT OF ASSETS AND LIABILITIES

Particulars	Audited 3 lst March 2020		Audited 31st March 2019
I.ASSETS
1. Non-current assets
(i) Property, Plant & Equipment	3,117.10		3,170.43
(ii) Financial Assets
(a) Other financial assets	223.73		300.87
(iii) Other non current assets	306.72		294.38
(iv) Deferred tax Asset (net)	259.71	3,907.26	235.03	4;000.11
2. Current assets
(i) Inventories	406.89		1,063.44
(ii) Financial Assets
(a) Trade receivables	23,782.64		13,564.53
(b) Cash and Cash Equivalents	1,586.05		1,306.71
( c) Other financial assets	56.87		22.22
(iii) Other current assets	1,714.15	27,546.60	940.48	16,897.38
Total		31,453.86		20,898.09
II EQUITY AND LIABILITIES
A Equity
(a) Equity Share Capital	1,251.19		1,251.19
(b) Other Equity	9,631.12	10,882.31	8,995.86	10,247.05
B Liabilities
t. Non-current liabilities
(i) Financial liabilities
(a) Long-term borrowings	151.81		102.37
(iii) Long-term provisions	177.22	329.03	126.17	228.54
2. Current liabilities
(i) Financial liabilities
(a) Short-term borrowings	2,795.95		4,954.23
(b) Trade payables
Total Outstanding dues to Micro enterprises and small
enterprises	492.20		238.78
Total Outstanding dues to creditors other than Micro
enterprises and small enterprises	15,911.34		4,557.37
(c) Other financial liabilities	119.26		167.47
(ii) Other current liabilities	761.15		352.99
(iii) Short-term provisions	162.62	20,242.52	151.66	10,422.50
Total		31,453.86		20,898.09

. . 2 This statement is as per regulation 33 of the SEBI (Listing obligationsand disclosure Requirements) Regulations, 2015. These approved by the Board of Directors of the Company at the meeting held on 30th June 2020

l The above financial results for the quarter and year ended 31st March 2020 have been reviewed by the Audit Committee and were

• 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 Boardoflndia ("SEBI").

Date: 30th June 2020