Tera Software Ltd. — Interim / Quarterly Report 2020

Apr 7, 2021

TERA SOFTWARE LIMITED

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

Date: 18-02-2021

To

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

Symbot: TERASOF,T

Dear Sir/Ivfadam,

sub: .clarification forrdeficiency in submission of euick Results for the euarter and year

Ref: continue reminder emails from NSE and in continuation to our reply dt.0s-0g-2020

with reference to the above cited subje:t, I. deficiency in hereby inform and clarifiing you for the submitted Quick Results ro. tt e quu.t"r-ua year ended 3l-03-2020as follows:

Your remark 1: Financial results submitted is not as per format prescribed by sEBI:

clarification: Please note that some head of the accounts are dffirent with the sEBI f#;irin nomenclature and io othe, aeviations ore in the submitted euick

Your remark 2: Statement of Cash Flow not submitted:

clarilication: Due 1o il hury to upload the Quick Results with in half-an hourfrom the conclusion of the Board Meeting the CashJlow statement is not attached.

we' assure you in future such type of mistakes shall not be repeated. please mistakes consider the above and resolve the mattei with this reply.

Please find attached the revised Results, once again for your kind perusal.

Kindly take the above information on your record.

Thanking You,

Yours faithfully, For TERA SOFTWARE LIMITED

Company Secretary & Compliance CH. MALf,TKTRMA

Telangana INDIA

Date: 05.08.2020

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

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

Dear Sir/Madam,

Sub: Revised Financial Results for the quarter and year ended 31.03.2020

Apropos to your mail seeking clarification on the Financial Results for the Quarter and Year ended 31.03 .2020. We hereby submit the revised Financial Results as directed by you.

Kindly take the above information on your record.

Yours faithfully,

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, 2()19 ·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 compaJ1.y, 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 provi~ · or our opinion.

µ s cf0o - yderabad ~* n -!:: .-,,o1,,,, # 'ered Acco-S

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 iriterim 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~N~~ professional skepticism throughout the audit. We also: ~'v 0

.-. ,,_,,. a ~ yd era bad ;*

• 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: 20226476AAAAAU2065

Place: Hyderabad Date:30.06.2020

TERA SOFTWARE LIMITED CIN L72200TG1994PLC018391

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

STATEMENT OF STNDALONE UNAUDITED I AUDITED RESULTS FOR THE QUARTER AND 3 MONTHS ENDED 31.03.2020

				Rupees in Lakhs
PARTICULARS	Quarter ended	PrecedingQuarterended	Corresponding3 Months endedin the previousvear	Figures forthe yearended	Figures forthe yearended
	31.03.2020	31.12.2019	31.03.2019	31.03.2020	31.03.2019
	AUDITED	UNAUDITED	AUDITED	AUDITED	AUDITED
1. Income from operations
(a) Net Sales I Income from operations (net of excise
duty)	9,225.06	7,087.25	10,771.64	26,89737	17,644.91
(b) Other Operating Income	-	-	-	-	-
Total Income from Operations (Net)	9,225.06	7,087.25	10,771.64	26,897.37	17,644.91
2. 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
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	8,739.94	6,766.26	10,249.51	25,285.05	16,589.16
3. Profit I (Loss) from Operations before other
income, finance costs and exceptional items (1-2)
	485.12	320.99	522.13	1,612.32	1,055.75
4. Other Income	79.93	76.04	65.75	301.57	249.80
5. Profit I (Loss) from ordinary activities before
finance costs and exceptional items (3+/-4)
	565.05	397 03	587.88	1,913.89	1,305.55
6. Finance costs	242.04	219.37	205.95	927.38	709.30
7. Profit I (Loss) from ordinary activities after
finance costs but before exceptional items (5+/-6)
	323.01	177.66	381.93	986.51	596.25
8. Exceptional Items	-	-	-	-	-
9. Profit I (Loss) from ordinary activities before	323.01	177.66	381.93		596.25
Tax (7+/-8)10. Tax expense				986.51
1) Current Tax	109.91	81.44	223.65	352.91	269.15
2) Deferred Tax	(4.31)	(38.94)	(81.99)	(18.88)	(40.54)
11. Net Profit/Loss from ordinary activities after
tax (9+/-10)	217.41	135.16	240.27	652.48	367.64
12. Extrordinary items (net of tax Expense
lakhs)
13. Net Profit/(Loss) for the period (ll+/-12)	-217.41	-135.16	-240.27	-652.48	-367.64
14. Other Comprehensive Income
(a) Items that will not be reclassified to profit or
(ii)loss
Income Tax relating to items that will 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
15. Net Profit/(Loss) for the period (13+/-14)	200.18	135.16	251.16	635.25	378.53
Earning Per equity share (for continuing
operations):
(I) Basic	1.74	1.08	1.92	5.21	2.94
(2)Diluted	1.74	1.08	1.92	5.21	2.94
Earning Per equity share (foi; discontinued &
Continuing operations):
(I) Basic	1.74	1.08	1.92	5.21	2.94
(2)Diluted	1.74	1.08	1.92	5.21	2.94

YC•rtl

TERA SOFTWARE LTD. CIN L 72200TG 1994PLC018391 #8-2-293/82/A/1107, Plot no 1107, Road no 55, .Iubilee Hills, Hyderabad-33. SEGMENT WISE REVENUE AND RES UL TS

				Runees inLakhs
				Corresponding	Year to date	Year to date
		3 Months	Preceding3	3 Months ended figures for the figures for the
SI.		ended	Months ended	in the previous	current year	previous year
No.	PARTICULARS			year	ended	ended
		31.03.2020	31.12.2019	31.03.2019	31.03.2020	31.03.2019
		AUDITED	UNAUDITED	AUDITED	AUDITED	AUDITED
1	Segment Revenue
	a) Integrated Solutions Division	8.48	144.42	6,974.58	1,811.20	8,131.84
	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
2	Interest from each Segment)
	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	23,011.61	19,173.78	23,110.82	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	5.51	70.66	221.70	5.51	221.70
	Projects Division	9, 139.17	10,562.35	9,263.37	9,139.17	9,263.37
	Unallocable	(8,928.84)	(10,481.08)	(10,214.73)	(8,928.84)	(10,214.73)
	Total	-	~	-	-	-

STATEMENT OF ASSETS AND LIABILITIES

Particulars		Audited31st March 2020		Audited
	I			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	4,000.71
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
1. 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

Notes:

1 The above financial results for the quarter and year ended 3 lst March 2020 have been reviewed by the Audit Committee and were approved by the Board of Directors of the Company at the meeting held on 30th June 2020

• 2 This statement is as per regulation 33 of the SEBI (Listing obligationsand disclosure Requirements) Regulations, 2015. These 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").
• 3 Corresponding quarter/Year figures heve been re-grouped /re-classified wherever necessary to confirm to the classification of the current period. · •
• 4 In view of the Non -receipt of approvals for AP Fiber Grid Operational and maintenance work from the principals for the work executed by the company, billing to APSFL has not been made and the cost incurred is reflected under unbilled work for the quarter. ::::::: ....

Place: Hyderabad Date: 30th June ~020

TERA SOFTWARE LIMITED STNDALONE STATEMENT OF CASH FLOWS

		(R upees m . L kh) a
Particulars	For the year ended For the year ended31.03.2020	31.03.2019
	Audited	Audited
A. Cash flow from operating activities
Net Profit before tax as per Profit & Loss Statement	986.51	596.27
Adjustments to reconcileprofit before tax to net cash flow:
Depreciationand amortisation	80.60	254.69
Sundry Credit Balances Written Back	394.27	281.64
Interest Income	(107.63)	(57.49)
Bad Debts Written Off	863.26	201.05
Finance Cost	(927.38)	(709.30)
in Assets and LiabilitiesChanges
Trade receivables	(4,131.15)	(2,126.95)
Other Financial Assets and Other Assets	(6,907.73)	(84.89)
Other Non Current Assts	(12.34)	(224.64)
Other Current Assets	(773.67)	73.49
Inventories	656.55	151.54
Trade Payables	11,213.12	1,344.47
Long Term Provisions	51.05	0.69
Long Term Borrowings	49.44	(4.59)
Other Current Liabilities	408.16	(422.64)
Short Term Provisions	10.96	(90.23)
Other Financial Liabilities	(48.21)	28.74
Cash generated from operations	1,805.81	(788.15)
Income tax paid	(375.95)	(274.61)
Net cash flow from operating activities (A)	1,429.86	(1,062.76)
B. Cash flow from investingactivities
Property, Plant & Equipment	(27.27)	(11.10)
Interest Income	107.63	57.49
Net cash flow from Investing activities(B)	80.36	46.39
C. Cash flow from financing activities
Short Term Barrowings(Net)	(2,158.28)	645.40
Interest Paid	927.38	709.30
Net cash flow from Financing activities (C)	(1,230.90)	1,354.70
Net increase in Cash and cash equivalents (A+B+C)	279.32	338.33
Opening balance of Cash and cash equivalents	1,306.73	968.40
Closing balance of Cash and cash equivalents	1,586.05	1,306.73
Components of Cash and Cash Equivalents
Cash and cheques on Hand	12.57	1.06
Balances with Banks
-On Current Accounts	56.54	386.66
-On Deposit Accounts	1,516.94	919.01
Cash and cash Equivalent as per Note 16	1,586.050	1,306.73