Tera Software Ltd. — Interim / Quarterly Report 2021

Feb 12, 2021

TERA SOFTWARE LIMITED

8-2-293t82tN1107, Plot No. 1107, Road No. 55, Jubilee Hills, Hyderabad-S00 033, Telangana, lNDlA.

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Date: 12-02-202L

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

National Stock Exchange of lndia 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. Friday, 12th Februa ry,202L: 1. Considered and approved the Un Audited Financial Results of the Company for the 3rd Quarter ended 31st December,Z0ZO.
• 1. Appointment of Mr Divakar Atluri as an Independent Director w.e.f. 12th February 202L.
• 1. Appointment of Mr Ch. Mallikarjuna as the Company Secretary & Compliance Officer of the Company w.e.f. 12th Februa ry, Z0Zl.

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 M/s. Mullapudi & co., chartered Accountants, is enclosed herewith.

The.Board Meeting commenced atLZ:30 p.M. and concluded at 4:00 p.M.

Kindly take the above information on your record.

Yours faithfully, For Tera'Software Limited

.\l.5-

Ch. Mallikariuna CompanySecretary Memb.No.47545

GIN : L72200TG1994PLC018391

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 31st DECEMBER, 2020

					Rupees in Lakhs٠
PARTICULARS	3 monthsended	Preceding 3monthsended	Corresponding 3Months ended inthe previous year	Year to datefigures for thecurrent year	Year to datefigures for theprevious year	Figures for thePrevious yearended
				ended	ended
	31.12.2020	30.09.2020	31.12.2019	31.12.2020	31.12.2019	31.03.2020
	Unaudited	Unaudited	Unaudited	Unaudited	Unaudited	Audited
1. Income from Operations
(a) Net Sales /Income from operations (net
of excise duty)	4,002.74	5,309.14	7,087.25	10,795.75	17,672.30	26,411.34
(b) Other operating Income		206.10		307.59	0.01	486.03
Total Income from Operations (net)	4,002.74	5,515.24	7,087.25	11,103.34	17,672.31	26,897.37
2. Expenses
Purchases	0.40		21.40	0.40	270.89	308.23
Changes in inventories of finished goods,
work-in-progress and stock in trade	72.33	8.85	149.82	114.65	512.67	656.55
Technical & Operation expense	3,371.09	4,327.90	5,445.03	8,363.54	12,235.61	19,336.19
Employee benefit expense	312.06	784.98	837.67	1,847.14	2,574.75	3,417.44
Depreciation & amortisation expense	14.49	15.30	16.27	46.28	64.05	80.60
Other Expenses	77.70	221.45	296.08	447.44	887.13	1,486.05
Total Expenses	3,848.07	5,358.48	6,766.27	10,819.45	16,545.10	25,285.06
3. Profit/(Loss) from operations before
other income, finance costs and
Exceptional Items (1-2)	154.67	156.76	320.98	283.89	1,127.21	1,612.31
4. Other Income	74.89	105.43	76.04	253.80	221.64	301.57
5. Profit/(Loss) from ordinary activities
before finance costs but before
Exceptional Items $(3+ 4)$	229.56	262.19	397.02	537.69	1,348.85	1,913.88
6. Finance costs	201.56	247.08	219.37	652.52	685.34	927.38
7. Profit/(Loss) from ordinary activities
after finance costs but before
Exceptional Items $(5+_{-}6)$	28.00	15.11	177.65	(114.83)	663.51	986.50
8. Exceptional Items						$\blacksquare$
9. Profit/(Loss) from ordinary activities
before tax $(7^{\degree} 8)$	28.00	15.11	177.65	(114.83)	663.51	986.50
10. Tax expense
1) Current Tax	0.37	8.87	81.44	9.23	243.00	352.91
2) Tax Expenses relating to Earlier years
3) Deferred Tax	3.94	(5.67)	(38.94)	(35.91)	(14.57)	(18.88)
11. Profit/(Loss) from ordinary
activities after tax $(9^+ 10)$	23.69	11.91	135.15	(88.15)	435.08	652.47
12. Extraordinary items (net of tax Rs
Lakhs)expense		٠
13. Net Profit/(Loss) before Other
comprehensive income $(11+-12)$	23.69	11.91	135.15	(88.15)	435.08	652.47
14. Other Comprehensive Income
Add: (i) Items that will be reclassified to
profit or loss						(23.02)
Less: (ii) Income Tax relating to items
that will be reclassified to profit or loss
						(5.79)
13. Net Profit/(Loss) for the period (13 + -
14)	23.69	11.91	135.15	(88.15)	435.08	635.24
Earning Per equity share (for
continuing operations):
$(1)$ Basic	0.19	0.10	1.08	(0.70)	3.48	5.21
(2) Diluted	0.19	0.10	1.08	(0.70)	3.48	5.21
Earning Per equity share (for
discontinued & Continuing operations):
$(1)$ Basic	0.19	0.10	1.08	(0.70)	3.48	5.21
(2)Diluted	0.19	0.10	1.08	(0, 70)	348	5.21

For Tera Software Limited

VC and Managing Director

TERA SOFTWARE LTMITED .

cIN L72200TG1994PLC018391

#8-2-293182lAlll07,Plot no 1107, Road no 55, Jubiree Hilrs, Hyderabad-33.

SEGMENT WISE REVENUE AND RESULTS

					in Lakhs
		3 months	Preceding 3months	Corresponding 3Months ended in	Year to date	Year to date
					figures for the	figures for the	Figures for the
sl.	PARTICULARS	ended	ended	the previous year	current year	previous year	Previous year
No.					ended	ended	ended
		31.12-2020	30.09.2020	31.12.2019	31.12.2020	31.12.2019	3r.03.2020
		Unaudited	Unaudited	Unaudited	Unaudited	Unaudited	Audited
	Segment Revenue
	a) lntegrated Solutions Division	0.45		6.21	0.45	361.09	361.09
	b) Technical Division	270.76	544.87	608.03	r,419.42	1,807.r3	2,422.45
	c) Proiects Division	3,731.53	4,970.37	6,473.01	9,683.47	15,504.09	24,n3.83
	\et sales/Income liom operations	4.002.74	5,515.24	7,087.25	I,10J.34	17.672.31	26,897.37
	Segment Results [Profit / (Loss) before
	Tax and Interest from each Segment]
2
	a) Integrated Solutions Division	(71.47		(20.02	(71.47	72.48	(73.77)
	b) Technical Division	29.73	60.1 6	72.6',1	164.76	215.97	291.27
	c) Projects Division	315.31	272.90	574.35	718.93	1,509.05	2,408.23
	Total	273.57	333.06	627.00	atz.2z	1.797.50	2,625.73
	Less: i) Interest Expenses	201.56	247 .08	219.37	652.s2	685.34	927 ,38
	ii) Un-allocable expenditure (Net)	I 18.90	176.30	306.02	528.33	670.29	1,013.42
	Add: lnterest and Other Income	74.89	105.43	76.04	253.80	221.64	301.s7
	Iota! Profit/(Loss) Before Tax	28.00	15.1 I	177.65	I r4.E3	663.51	986.50
	Segment Assets
	Integrated Solutions Division	I19.05	246.43	354.7s	119.05	354.ts	253.81
	Technical Division	787.40	1,506.91	999.27	787.40	999.27	1,099.68
	Projects Division	18,542.88	14,969.31	15,634.42	I 8,542.88	15,634.42	15,556.04
	Unallocable	5.470.08	s,529.37	6,023.17	5,470.08	6,023.t7	6,201.29
	l'otal	24,919.41	22,252.02	23,011.61	24,919.41	23,011.61	23,n0.82
	Segment Liabilities
	lntegrated Solutions Division	4t4.98	423.00	527.t4	414.98	527.14	481.28
	Technical Division	995.13	1,218.80	928.61	995.13	928.6t	1,094.t7
	Projects Division	7,174.6'7	4,214.48	5,0s7.99	7,t7 4.67	5,057.99	6,405.24
	Unallocable	t6,334.63	16,395.74	16,497.87	16,334.63	16,497.87	1 5,1 30.1 3
	Iotal	24,919.41	22,252.02	2J,01l.6l	24,919.41	23,011.61	23,110.82
	(Segment Assets - Liabilities)
	lntegrated Solutions Division	(295.93)	(176.s7"	(172.39"	(29s.e3)	(r72.39)	(227.47
	Technical Division	(207.73)	288.1 I	70.66	(207;t3)	70.66	s.5l
	Projects DiviSion	t1,368.21	10,754.83	t0,576.43	I1,368.21	10,576.43	9,150.80
	Unallocable	(10,864.55)	(r0,866.371	(10,474.70'	(10,864.55)	/10,474.70\	(8,928.84
	Total

Notes:

IThe above financial results for the quarter e nded 3l st December 2020 have been reviewed by the Audit Committee and were approved by the Board of Directors of the company at the meeting held on I 2th February 2021

2This statement is as per legulation 33 ofthe SEBI (Listing obligationsand disclosure Requirements) Regulations, 2015. These financials results ofthe company were prepared in accordance with the Indian Accounting Standards prescribed under section 133 ofthe companies Act,20l3 ("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,).

3ln view of non'realisation of bills from AP Fiber Grid project for operation and maintenance work being executed by the company, the Company is recognising the revenue only to the extenet of cost incurred for the project till the termination notice received from Client

4Bank guarantee invoked by "Andhra Pradesh state Fibernet limited" ofRs.4.28 crores. The said action was challenged by the company before the division bench ofAndhra Pradesh High Court, Amaravathi, which is pending. Based on the legal opinion given by the counsel, the company has not made any provision in its books ofaccounts.

For Tera S

VC an

• 5 Bank Balance Attac-hement from Government of AP: The commercial taxes Department of Andhra pradesh has given an attachment notice to the Bank of Maharashtra to hold and remit an amount of Rs.73,36,942l- to the Govt. from the cash credit account of the company due to commercial tax department for the Period March -May 2020 based on GSTRI forms filed for the above months.
• 6!r$.t1 Issued by GST Department: Best Judgment assessment orders under section 62 have been passed by the GST Department Andhra Pradesh for the period March to Nove mber 2020 for non filing of GSTR-3B returns and raised a demand of Rs.3.l3 crores including interest of Rs'9' 18 lakhs' A reply has been filed with the department by the company requesting for extension of time for filing the retums and payment of taxes till the huge arrears due from ApSFL are realized.
• 7orders Issued by Appellate Deputy commissioner (cr), Tirupathi: The order restricts the input availed by the compan y to 7so/o of the input claimed treating the service being executed as a work contract instead of the supply and services contracts separately (APSFL Project)' A demand of Rs'21,45,089/- has been raised by the department including a penalty of Rs.4,29,01g. The company plans to challenge the proceedings before the Appellate Tribunal.
• 8orders Issued by Deputy commissioner (cr) Guntur Division: The orders reskicts the input availed by the company to 75% of the input claimed treating the work being executed as a works contract instead of the supply and services conhacts separately (Ap civil supplies Project)' A demand of Rs'6,96,7 461- has been raised by the department, The company we are told plans to challenge the above order before the Appellate Tribunal.
• 9The Company has considered possible effects that may result from covid-I9 in preparation ofthese financial results including receverability of its assets. In developing the assumptions relating to future uncertainities in thl eceonomic conditions due to Covid-19 it has, at the date of approval of these results considered releveant internal and external sources of information and expects that the carrying amount of these assets are recoverable' The impact of Covid -l 9 my be different from that estimated as at the date ofappioval ofthese financial results.
• I0 Corresponding quarter/year to dateA(ear figures heve been re-grouped /re-classified wherever necessary to confirm to the classification of the current period,

For Tera So

Place: Hyderabad Date: l2th February 2021 Vice Chairman & Managing DIN: 00107886

MULLAPUDI & Co., CH.ARTER ED ACCOU NTANTS

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

Tel: 040-2373 5095, 9492A 63246 E"mail: ca.mullapudi@gmail.com

TIMITED REVIEW REPORT

Limited Review Report on stondolone ltnaudited Quarterty Financiar Resurts ttnder Reguration 33 ol the sEBt (Listing obtigations ond Discrosure Requirements) Regurations, 20rs,

To the Boord of Directors ol Tera Softwore Limited

we have reviewed the accompanying statement of unaudited standalone financial SOFTWARE [lMlrED' for the quarter results of M/s TERA and nine months ended 31.1 Decemb er 2o2oand the year results for the period 01 April to date 2o2o to31 Decembe r 2o2o,being submitted by the company pursuant the requirements of regulation to Regulation'2o15 33of the SEBI (Listing obigations and Discrosure Requirements) (as amended) including relevant circulars issued by the sEBr from time to time.

This Directors' statement' has been which prepared is the responsibility of the company's Management and approved by the Board of in accordance with the recognition and measurement principres in lndian Accounting standard raid down 34, lnterim Financiat of the companies Act' 2013 ('the reporting (,lnd AS 34'), prescribed under section 133 Act'), and other accountin! principtes generaly accepted responsibility is to express in rndia. our aconcrusion on the statement br;";;; our review.

we conducted our review of the statement (sRE) 2410' Review in accordance with the standard on Review Engagement of lnterim Financial tnformation performed issued by'the by the rndependent Auditor of the Entity, lnstitute of chartered Accountants of lndia. A review of interim financial consists of making information inquiries' primarily of persons responsibre applying analytical and other for financiar and accounting matters, and review procedures. A review is substantiafly conducted in accordance with ress in scope than an audit the standards on Auditing specified under section 143(10) of the Act, and ;T::1,il1[ffi:::".:?:::::]:::,11''^i:::T".: that we wourd become aware of arr significant ;:;;,*il;

#ryq #s

MULLAPUDI & Co., CHARTERED ACCOUNTANTS

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

Tel: 040-2373 5095, 94924 ffi246 E-mail: ca.mullapudi@gmail.com

Based on our review conducted as above, nothing has come to our attention that causes us to believe that the accompanying statemenf prepared in accordance with the recognition and measurement principles laid down in lnd As 34, prescrlbed under section 133 of the Act, and other accounting . principles generally accepted in lndia, has not disclosed the information required to be disclosed in terms of Regulation 33 of the sEBl (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: L2.02.2O21

lCAl Ms.No.2264t6 UDIN: 21226475AMA8O5908 for Mullapudi& Co Chartered q}.' \o #9