Tera Software Ltd. — Interim / Quarterly Report 2021

Nov 11, 2021

8-2-293t82tN1107, Plot No. 1107, Road No. 55, Jubilee Hills, Hyderabad-SO0 033, Telangana, lNDlA.

Date: 1l-ll-2021

BSE Limited	National Stock Exchange of India Limited
P.J. Towers	Exchange Plaza, Bandar Kurla Complex
Dalal Street, Mumbai - 400001	Bandra (E ), Mumbai - 400051
Scrip: 533982	Symbol: TERASOFT

Dear Sir/IVladam,

Sub: Outcome of Board Meetins

The Board of Directors at its meeting held today, i.e. Thursday, l lth November, 2021:

• l. Considered and approved the Un Audited Financial Results of the Company for the Quarter and Half-Year ended 30th September, 2021 alongwith Limited Review Report.
• 1. Intimation of vacation of offrce of the Independent Director Sri SSR Koteswara Rao under Section 167 (I) (b) of the Companies Act, 2013.

In terms of Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, a copy of the said Results and Limited Review Report issued by IWs. Mullapudi & Co., Chartered Accountants, is enclosed herewith.

Kindly take the above information on your record.

Yours faithfully, FOR T9RA SOFTWARE LIMITED

fuo,j

T. GOPI CHAND Vice Chairman & Managing Director DIN:00107886

GIN : 172200TG1994PLC018391

TERA SOFTWARE LIMITED CIN L72200TG1994PLC018391

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

STATEMENT OF STANDALONE UNAUDITED RESULTS FOR THE QUARTER ENDED 30th SEPTEMBER, 2021 $\sim$

				(Rupees in lakhs)
PARTICULARS	for the quarter ended			for the half year ended	for the year
	30.09.2021	30.06.2021	30.09.2020	30.09.2021	30.09.2020	ended 31.03.2021
	Unaudited	Unaudited	Unaudited	Unaudited	Unaudited
1. Income from Operations						Audited
(a) Net Sales /Income from operations (net of
excise duty)	2,705.67	2,390.03	5,309.14	5,095.70
(b) Other operating Income		72.80	206.10	72.80	6,793.01	15,589.06
Total Income from Operations (net)	2,705.67	2,462.83	5,515.24	5,168.50	307.59	483.17
2. Expenses					7,100.60	16,072.23
Purchases
Changes in inventories of finished goods, work-						55.40
in-progress and stock in trade			8.86
Technical & Operation expense	2 138.64	1,899.97	4,327.90	4,036.87	42.32	132.90
Employee benefit expense	310.14	317.66	784.98	627.80	4,992.47	12,389.16
Depreciation & amortisation expense	14.18	14.18	15.30	28.37	1,535.08 31.79	2,178.54
Other Expenses	168.93	72.25	221.44	241.16	369.72	60.46
Total Expenses	2,631.89	2,304.06	5,358.48	4,934.20		575.08
3. Profit/(Loss) from operations before					6,971.38	15,391.54
other income, finance costs and Exceptional
Items $(1-2)$	73.78	158.77	156.76	234.30	129.22
4. Other Income	86.86	77.41	105.43	162.53	178.91	680.69
5. Profit/(Loss) from ordinary activities						321.31
before finance costs but before Exceptional
Items $(3^{\dagger}$ 4)	160.64	236.18	262.19	396.83	308.13	1,002.00
6. Finance costs	266.59	311.48	247.08	578.07	450.95	849.28
7. Profit/(Loss) from ordinary activities
after finance costs but before Exceptional
Items (5 + _6)	(105.95)	(75.30)	15.11	(181.24)	(142.82)	152.72
8. Exceptional Items
9. Profit/(Loss) from ordinary activities
before tax $(7^{\degree}$ -8 )	(105.95)	(75.30)	15.11	(181.24)	(142.82)	152.72
10. Tax expense
1) Current Tax	12.69	0.74	8.87	13.43	8.87	116.83
2) Tax Expenses relating to Earlier years
3) Deferred Tax. 11. Profit/(Loss) from ordinary activities	(11.05)	(5.56)	(5.67)	(16.60)	(39.85)	(48.41)
after tax $(9^{\degree}10)$
12. Extraordinary items (net of tax Rs	(107.59)	(70.48)	11.91	(178.07)	(111.84)	84.30
Lakhs) expense
13. Net Profit/(Loss) before Other
comprehensive income (11 + -12)	(107.59)	(70.48)	11.91	(178.07)	(111.84)	84.30
14. Other Comprehensive Income
Add: (i) Items that will be reclassified to profit or loss
						(97.39)
Less: (ii) Income Tax relating to items that
will be reclassified to profit or loss						(24.51)
13. Net Profit/(Loss) for the period (13 + -
14 )	(107.59)	(70.48)	11.91	$-178.07$	$-111.84$	11.42
14. Paid up Equity Share Capital (Face
Value Rs 10/-1 Reserves (excluding Revaluation Reserve as	1,251.19	1,251.19	1,251.19	1,251.19	1,251.19	1,251.19
per the Balance Sheet of previous accounting
year)
Earning Per equity share (for continuing	9,435.66	9,543.25	9,519.28	9,435.66	9,519.28	9,613.73
operations): $(1)$ Basic
	(0.86)	(0.56)	0.10	(1.42)	(0.89)	0.67
(2) Diluted Earning Per equity share (for discontinued	(0.86)	(0.56)	0.10	(1.42)	(0.89)	0.67
& Continuing operations):
$(1)$ Basic	(0.86)	(0.56)	0.10	(1.42)	(0.89)	0.67
(2) Diluted	(0.86)	(0.56)	0.10	(1.42)	(0.89)	0.67

Bland

TERA SOFTWARE LIMITED CIN L72200TG1994PLC018391 48-2-293/82/A/1107, Plot no 1107, Road no 55, Jubilee Hills, Hyderabad-33.
SEGMENT WISE REVENUE AND RESULTS

	(Rupees in Lakhs)
PARTICULARS	for the quarter ended		for the half year ended	for the year ended
	30.09.2021	30.06.2021	30.09.2020	30.09.2021	30.09.2020	31.03.2021
1. Segment Revenue	Unaudited	Unaudited	Unaudited	Unaudited	Unaudited	Audited
a) Integrated Solutions Division
b) Technical Division	287.59	301.50				58.20
c) Projects Division	2,418.08	2,161.33	544.87	589.09	1,148.66	1,699.09
Net sales/Income from operations	2,705.67	2,462.83	4,970.37	4,579.41	5,951.94	14,314.94
2. Segment Results [Profit / (Loss) before			5,515.24	5,168.50	7,100.60	16,072.23
Tax and Interest from each Segment]
a) Integrated Solutions Division
b) Technical Division	38.56	(7.61)		(5.87)		(82.78)
c) Projects Division	277.41	27.65	60.16	66.21	135.03	195.61
Total	315.97	309.78 329.82	272.90	587.19	403.62	1,321.18
Less: i) Interest Expenses	266.59		333.06	647.53	538.65	1,434.01
ii) Un-allocable expenditure (Net)	242.19	311.48 171.05	247.08	578.07	450.95	849.28
Add: Interest and Other Income	86.86	77.41	176.30	413.22	409.43	753.32
Total Profit/(Loss) Before Tax	(105.95)	(75.30)	105.43	162.52	178.91	321.31
Segment Assets			15.11	(181.24)	(142.82)	152.72
Integrated Solutions Division	1,111.15	614.94	674.74
Technical Division	302.57	382.94	1,548.45	1,111.15	674.74	600.75
Projects Division	22,563.01	21,962.85	20,437.90	302.57	1,548.45	725.06
Unallocable	5,519.37	5,995.43	6,163.24	22,563.01 5,519.37	20,437.90	22,787.91
Total	29,496.10	28,956.16	28,824.33	29,496.10	6,163.24	5,713.87
Segment Liabilities					28,824.33	29,827.59
Integrated Solutions Division Technical Division	1,293.82	883.74	800.63	1,293.82	800.63
Projects Division	565.38	839.79	1,260.34	565.38	1,260.34	862.77
Unallocable	8,359.06	9,089.52	9,610.95	8,359.06	9,610.95	808.99
Total	19,277.84	18,143.11	17,152.41	19,277.84	17,152.41	9,821.74
(Segment Assets - Liabilities)	29,496.10	28,956.16	28,824.33	29,496.10	28,824.33	18,334.09 29,827.59
Integrated Solutions Division
Technical Division	(182.67)	(268.80)	(125.89)	(182.67)	(125.89)	(262.02)
Projects Division	(262.81)	(456.85)	288.11	(262.81)	288.11	(83.93)
Unallocable	14,203.95	12,873.33	10,826.95	14,203.95	10,826.95	12,966.17
Total	(13, 758.47)	(12, 147.68)	(10,989.17)	(13,758.47)	(10,989.17)	(12,620.22)
				$\blacksquare$

STATEMENT OF ASSETS AND LIABILITIES

	(Rupees in Lakhs)
Particulars	Unudited 30th September 2021		Audited 31st March 2021
I. ASSETS
1. Non-current assets
(i) Property, Plant & Equipment
(ii) Financial Assets	3,024.08		3,052.45
(a) Other financial assets
(iii) Other non current assets	245.51		251.61
(iv) Deferred tax Asset (net)	628.87		589.41
	349.23		332.62
2. Current assets		4,247.69		4,226.09
(i) Inventories
(ii) Financial Assets	273.99		273.99
(a) Trade receivables
(b) Cash and Cash Equivalents	19,737.39		19,716.89
(c) Other financial assets	1,095.48		1,377.36
(iii) Other current assets	2,455.18		2,723.34
	2,001.66		1,526.54
		25,563.70		25,618.12
Total		29,811.39		29,844.21

(Spand

Particulars		Unudited		Audited
	30th September 2021		3lst March 2021
lil EqUITYAND TIABIIITIES
A Equity
(a) Equity Share Capital	t,257.t9
(b) Other Equity	9,435.66		L,25L.t9
			9,613.73
tiabilities		10,686.85		10,864,92
1. Non-current liabilities
(i) Financial liabilities
(a) Long-term borrowings
(iii) Long-term provisions	391.3s		348.88
	175.38		161.53
2. Current liabilities		565.73		510.41
(i) Financial liabilities
(a) Short-term borrowings
(b) Trade payables	6,0t7.33		5,112.58
Total Outstanding dues to Micro enterprises and small
toial Outstanding dues to creditors other than Micro	322.2L		3s3.77
	8,788.79		LO,279.9t
(c) oiher financi.i rirriiiti",	L,992.64		1,402.40
(ii) Other current liabilities	L,362.2s		t,201.3L
(iii) Short-term provisions	74.59		118.91
		18,557.81		18.468.88 I
Total		29,811.39		29,W4.2t

Notes:

1 the The Board above of financial Directors results for the quarter ended 30TH SEPTEMBE& 202! havebeen reviewed by the Audit committee and were approved by ofthe company at the meeting herd on 11TH NOvEM BER,2ozl

• 2 Thisstatementisasperregulation33ofthesEBl(ListingobligationsanddisclosureRequirements)Regulations,20j.s.Thesefinancialsresults of the company were prepared in accordance with the Indian Accounting standards prescribed unier Iection 133 of the companies Act, 2013 ["the act") read with relevant rules issued there under ("lnd AS") and oiher accounting principles generally acceprted in India and guidelines issued by the Securities and Exchange Boardoflndia ("SEBI).
• ³Bank guarantee invoked by "Andhra Pradesh state Fibernet limited" ofRs.4.2B crores. The said action was challenged by the company before i:: ilJ;::Iil'r::*:,1X'1":fi::X*?:.t"":T;Amaravathi,which is pending. Based on the regar opinioi, given by the counser, thu **p"ny
• 4 Orders Issued by GST Department: Best Pradesh for Judgment assessment orders under section 62 have been passed by the GST Department _ Andhra the period Rs June 2020 to February 2021 for non filing of GSTR-3B returns and raised a demand of Rs 3.6 crores including interest of of '0733 crores' A reply has been filed with the department by the company requesting for extension of time for filing the returns and payment Taxes' taxes Tirupathi till the huge arrears due from APSFL are realized. Appeals filed on zz.to.zoztbefore Appellate Deputy commissioner, commercial against orders passed by GST department for the period from Honourable High fune 2020 to February zozt asper the orders passed by the court ofAndhra Pradesh' The company received Best GST Department fudgment assessment orders under section 62 have been passed by the crores including - Andhra Pradesh for the period March 2o2t to May 20zl for non filing of GSTR-3B returns and raised a demand of Rs L.22 interest of Rs .0482 crores, the company will file appeals aganist the same on or before 3L.12.202L.
• 5 claimed orders Issued by Appellate Deputy commissioner (cr), Tirupathi: The order restricts tre input availed by the company to 75yo of the input treating the serviie being executed as a works contract instead of the suppry and services contracts separately (ApsFL projectJ. demand of Rs'21'45'089/- ^A proceedings has been raised by the department including a penalty of Rs.4,29,018. The company deciiei to challenge the before the Appellate Tribunal and appeal was filed on 05.10.202r iefore Apver Appeallate Tribunal, visakhapatnam. ⁶
• claimed orders Issued by Deputy commissioner (cr) Guntur Division: The orders restricts the input availed by the company to 7so/oof the input Project)' treating A demand the work bbing executed as a works contract instead of the supply and services contracts separately (Ap civil suppries Tribunal and of Rs'6,96,7 46/ - has been raised by the department. The comp_any decided to challenge the above order before the Appellate appeal was filed on 05,1.0.2021 before APVAT Appeallate Tribunal, visakhapatnam.
• 7 Thecompanyhastonsideredpossibleeffectsthatmayresultfromcovid-lginpreparationofthesefinancialresultsincludingrecoverab,ityof approval its assets' of In developing the assumptions relating to future uncertainities in the economic conditions due to covid-19 it hag at the date of these results considered releveant internal and external sources of information "nJ assets are recoverable' .rp..,r1rrat the carrying amount of these The impact of covid -L9 may be different from that estimated as at the date or rip.or"t ofthese financial results.
• B corresponding quarter/year to date/Year figures heve been re-grouped current period. /re-classified wherever necessary to confirm to the classification ofthe

Place: Hyderabad

For Tera ^S

Date : 1Ith November, 2021 Vice Chairman & Managing Director DIN:00107886

TERA SOFTWARE LIMITED

CASH FLOW STATEMENT FOR THE HALF YEAR ENDED 30.09.2021.

			in Lakh
A. Cash flow from operating activities
Net Profit / [LossJ before tax as per profit & Loss Statement
Adiustrnents for:	(L81.24)	152.72	(1.42.82)
Depreciation and amortisation
Sundry Credit Balances Written Back	28.37	60.46	31.79
Interest Income		482.98 (7t2.34)	307.41,
Bad Debts Written Off	[28.1s]		(71.01)
Finance Cost	(s7B.o;)	L72.41, (84e.28)	136.78
Sundry Balances Written back		(3.7L)	[4s0.es)
Interest on MSME		(23.44)
Changes in Assets and Liabilities
Trade receivables	[20.s0)	[3,056.89J	580.12
Other Financial Assets and Other Assets	6.10	4,254.2t	2,007.53
Other Non Current Assets	[3e.46)	145.70	L67.43
Other Current Assets	(206.e6)	(240.79)	(67e.07)
Inventories		1.32.90	42.32
Trade Payables	(1,522.68)	(5,41,8.02)	(5,030.39)
Long Term Provisions Other Current Liabilities	13.85	[1s.68)	29.57
Short Term Provisions	L60.94	440.76	535.83
Other Financial Liabilities	(44.32)	(43.7L)	Ie.e0]
Cash generated from operations
Income tax paid	[1,821.88) (73.44)	(3,473.991
Net cash flow from operating activities (A)		(2L4.21)
B. Cash flow from investing activities
Property, Plant & Equipment
Interest Income
Net cash flow from Investing activities [B)
C. Cash flow from financing activities
Short Term Barrowings[Net)	904.75	2,3L6.63
Long Term Borrowings	42.47	1.97.07
Interest Paid
Net cash flow from Financing activities [C) Net increase in Cash and cash equivalents (A+B+C)
Opening balance of Cash and cash equivalents	-281.88	(208.6e)	119.33
ing balance of Cash.and cash	1.,377.36	1,586.05	1,596.05
Components of Cash and Cash nquivatents
Cash and cheques on Hand
Balances with Banks	13.78	15.36	25.40
-0n CurrentAacounts	33.49
-On DepositAccounts	1,048.2L	76.22 L,285.78	L14.28
Cash and cash Equivalent asper Note 7			L,565.70

Place: Hyderabad Date : 11th November 2021

For Tera So\$rgre Limited

@/"a(

T. Gopichand Vice Chairman & Managing Director DIN:00107886

MULLAPUDI & Co., CHARTERED ACCOUNTANTS

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

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

LIMITED REVIEW REPORT

Limited Review Report on Unaudited Quarterly Financial Results Under Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

To the Board of Directors of Tera Software Limited

We have reviewed the accompanying statement of unaudited standalone financial resultsofM/sTERA SOFTWARE LIMITED, for the Quarter and Half year ended 30th September 2021 being submitted by theCompany pursuant to the requirements of regulation 33 of the SEBI(Listing Obligations and Disclosure Requirements) Regulation, 2015 (as amended) including relevant circulars issued by the SEBI from time to time.

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

We conducted our review of the Statement in accordance with the Standard on Review Engagement (SRE) 2410, Review of Interim Financial Information performed by the Independent Auditor of the Entity, issued by the Institute of Chartered Accountants of India. A review of interim financial information consists of making inquiries, primarily of persons 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 the Standards on Auditing 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.

Based on our review conducted as 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 Ind AS 34, prescribed under Section 133 of the Act, 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.

Place: Hyderabad Date: 11.11.2021

For Mullapudi& Co., Chartered Accountants PUDI FRN.006707S Hyderabad B. Krishna Sivaram Adaparae Partner

M. No: 226476 UDIN: 21226476AAAAFK7288