Tera Software Ltd. — Interim / Quarterly Report 2022

Feb 14, 2022

TERA SOFTWARE LIMITED

• 8-2-2931821N1107, Plot No. 1107, Road No. 55, Jubilee Hills, Hyderabad-S0O 033, Telangana, lNDlA.

Date: 14-02-2022

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, Monday, l4th February,2022:

l. Considered and approved the Un - Audited Standalone Financial Results of the Company for the Quarter ended 3lst December,20Zl along with Limited Review Report.

'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 lWs. Mullapudi & Co., Chartered Accountants, is enclosed herewith.

Kindly take the above information on your record.

Yours faithfully, For TEBr\$. SOF'TWARE LIMITED &/

T. GOPI CHAI\ID 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 31ST DECEMBER, 2021

	(Rupees in lakhs)
		Quarter ended		Nine months ended		Year ended
PARTICULARS	31.12.2021	30.09.2021	31.12.2020	31.12.2021	31.12.2020	31.03.2021
	Unaudited	Unaudited	Unaudited	Unaudited	Unaudited	Audited
1. Income from Operations
(a) Net Sales /Income from operations (net of excise duty)
	3,783.36	2,705.67	4,002.74	8,879.06	10,795.75	15,589.06
(b) Other operating Income	8.45			81.25	307.59	483.17
Total Income from Operations (net)	3,791.81	2,705.67	4,002.74	8,960.31	11,103.34	16,072.23
2. Expenses
Purchases			0.40		0.40	55.40
Changes in inventories of finished goods, work-
in-progress and stock in trade			72.33		114.65	132.90
Technical & Operation expense	3,110.60	2,138.64	3,371.10	7,147.47	8,363.54	12,389.16
Employee benefit expense	385.16	310.14	312.05	1,012.97	1,847.14	2,178.54
Depreciation & amortisation expense	12.42	14.18	14.49	40.78	46.28	60.46
Other Expenses	38.55	168.93	77.70	279.70	447.44	575.08
Total Expenses	3,546.73	2,631.89	3,848.07	8,480.92	10,819.45	15,391.54
3. Profit/(Loss) from operations before
other income, finance costs and Exceptional
Items $(1-2)$	245.08	73.78	154.67	479.39	283.89	680.69
4. Other Income	78.69	86.86	74.89	241.21	253.80	321.31
5. Profit/(Loss) from ordinary activities
before finance costs but before Exceptional
Items $(3^{\dagger}$ 4)	323.77	160.64	229.56	720.60	537.69	1,002.00
6. Finance costs	283.41	266.59	201.56	861.47	652.52	849.28
7. Profit/(Loss) from ordinary activities
after finance costs but before Exceptional
Items $(5^{\dagger}$ 6)	40.36	(105.95)	28.00	(140.87)	(114.83)	152.72
8. Exceptional Items						٠
9. Profit/(Loss) from ordinary activities
before tax $(7^{\dagger}$ _8)	40.36	(105.95)	28.00	(140.87)	(114.83)	152.72
10. Tax expense
1) Current Tax	18.42	12.69	0.37	31.86	9.23	116.83
2) Tax Expenses relating to Earlier years
3) Deferred Tax	(7.18)	(11.05)	3.94	(23.78)	(35.91)	(48.41)
11. Profit/(Loss) from ordinary activities
after tax (9 + _10)	29.12	(107.59)	23.69	(148.95)	(88.15)	84.30
12. Extraordinary items (net of tax Rs
expense Lakhs)
13. Net Profit/(Loss) before Other
	29.12	(107.59)	23.69	(148.95)	(88.15)	84.30
comprehensive income (11 + -12) 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 + -					$\blacksquare$
14)	29.12	(107.59)
14. Paid up Equity Share Capital (Face			23.69	(148.95)	(88.15)	11.42
Value Rs 10/-)
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)
	9,464.78	9,435.66	9,542.96	9,464.78	9,542.96	9,613.73
Earning Per equity share (for continuing
operations):
(1) Basic	0.23	(0.86)	0.19	(1.19)	(0.70)	0.67
(2) Diluted	0.23	(0.86)	0.19	(1.19)	(0.70)	0.67
Earning Per equity share (for discontinued
& Continuing operations):
$(1)$ Basic.	0.23	(0.86)	0.19	(1.19)	(0.70)	0.67
(2) Diluted	0.23	(0.86)	0.19	(119)	(0.70)	0.67

For Tera Software Limited

VC and Managing Director

$\overline{\phantom{a}}$

TERA SOFTWARE LIMITED 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)
	Quarter ended			Nine months ended		Year ended
PARTICULARS	31.12.2021	30.09.2021	31.12.2020	31.12.2021	31.12.2020	31.03.2021
	Unaudited	Unaudited	Unaudited	Unaudited	Unaudited	Audited
1. Segment Revenue
a) Integrated Solutions Division			0.45		0.45	58.20
b) Technical Division	1,014.58	287.59	270.76	1,603.67	1,419.42	1,699.09
c) Projects Division	2,777.23	2,418.08	3,731.53	7,356.64	9,683.47	14,314.94
Net sales/Income from operations	3,791.81	2,705.67	4,002.74	8,960.31	11,103.34	16,072.23
2. Segment Results [Profit / (Loss) before Tax and Interest from each Segment]
a) Integrated Solutions Division	(1.35)		(71.47)	(7.22)	(71.47)	(82.78)
b) Technical Division	98.53	20.85	29.73	164.74	164.76	195.61
c) Projects Division	267.33	277.41	315.31	854.52	718.93	1,321.18
Total	364.51	298.26	273.57	1,012.04	812.22	1,434.01
Less: i) Interest Expenses	283.41	266.59	201.56	861.47	652.52	849.28
ii) Un-allocable expenditure (Net)	119.44	242.18	118.90	532.65	528.33	753.32
Add: Interest and Other Income	78.69	86.86	74.89	241.21	253.80	321.31
Total Profit/(Loss) Before Tax	40.35	(123.65)	28.00	(140.87)	(114.83)	152.72
Segment Assets
Integrated Solutions Division	613.21	1,111.15	571.83	613.21	571.83	600.75
Technical Division	961.55	302.57	828.95	961.55	828.95	725.06
Projects Division	20,394.11	22,563.00	21,516.24	20,394.11	21,516.24	22,787.91
Unallocable	5,703.72	5,519.38	6,104.36	5,703.72	6,104.36	5,713.88
Total	27,672.59	29,496.10	29,021.38	27,672.59	29,021.38	29,827.60
Segment Liabilities
Integrated Solutions Division Technical Division	806.47	1,293.82	792.07	806.47	792.07	862.77
Projects Division	1,014.74	565.38	1,036.67	1,014.74	1,036.67	808.99
Unallocable	7,200.45	8,359.06	10,052.60	7,200.45	10,052.60	9,818.02
Total	18,650.93	19,277.84	17,140.04	18,650.93	17,140.04	18,337.82
(Segment Assets - Liabilities)	27,672.59	29,496.10	29,021.38	27,672.59	29,021.38	29,827.60
Integrated Solutions Division	(193.26)
Technical Division	(53.19)	(182.67) (262.81)	(220.24)	(193.26)	(220.24)	(262.02)
Projects Division	13,193.66	14,203.94	(207.72) 11,463.64	(53.19)	(207.72)	(83.93)
Unallocable	(12, 947.21)	(13,758.46)	(11, 035.68)	13,193.66 (12, 947.21)	11,463.64 (11, 035.68)	12,969.89
Total						(12, 623.94)

Notes:

1 The above financial results for the quarter ended 31ST DECEMBER, 2021 have been reviewed by the Audit Committee and were approved by the Board of Directors of the Company at the meeting held on 14TH FEBRUARY, 2022

• 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 Boardof India ("SEBI").
• 3 Bank guarantee invoked by "Andhra Pradesh State Fibernet limited" of Rs.4.28 Crores. The said action was challenged by the company before the division bench of Andhra 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 of accounts.
• 4 Orders Issued by GST Department: Best Judgment assessment orders under section 62 have been passed by the GST Department Andhra Pradesh for the period June 2020 to February 2021 for non filing of GSTR-3B returns and raised a demand of Rs 3.6 Crores including interest of Rs .0733 Crores. A reply has been filed with the department by the company requesting for extension of time for filing the returns and payment of taxes till the huge arrears due from APSFL are realized. Appeals filed on 27.10.2021 before Appellate Deputy Commissioner, Commercial Taxes, Tirupathi against orders passed by GST department for the period from June 2020 to February 2021 as per the orders passed by the Honourable High Court of Andhra Pradesh. The Company received Best Judgment assessment orders under section 62 have been passed by the GST Department - Andhra Pradesh for the period March 2021 to May 2021 for non filing of GSTR-3B returns and raised a demand of Rs 1.22 Crores including interest of Rs .0482 Crores, the company will file appeals aganist the same on or before 28.02.2022.

are Limited For Tera So VC and Managing Director

• ⁵0rders Issued by Appellate Deputy commissioner (CT), Tirupathir The order restricts the input availed bySre company ta zs%of the input claimed treating the service being executed as a works contract instead of the sJppty and seryices contracts separately (ApsFL project). A demand of Rs'21,45,089/- has been raised by the department including a penalty oi -*.i,zs,org. rhe company filed an appeal on 05.10.2021 to challenge the proceedings before the ApvAT Appeallate Tribunal, visakirapatnam.
• ⁵Orders Issued by Deputy commissioner (cT) Guntur Division: The orders restricts 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 serviies contracB separately (Ap civil supplies project). A demand of k.6,96,746/- has been raised by the deparhrenL The companyfiled an appeal on 0S .lo.zo2tio chattenge th" proceedings before the AFVAT Appeallate Tribunal, Visaliihapatnam
• ⁷The Company has considered possible effects that may result from Covid-l9 in preparation of these financial results including recoverability of its assets' In developing the assumptions relatiirg to future uncertainities in the economic conditions due to Covid:lg it has, at the date of approval ofthese results considered releveant internal and external sources ofinformation and expects that the carrying amount ofthese assets are recoverable. Th9 impact ofCovid '19 may be different from that estimated as atthe date ofapprlvd ofthese financial results.
• ⁸Corresponding quartEr/year to date/Year figures heve been re-grouped /re-ctassified wherever necessary to confirm to the classification ofthe 'current period.

Place: Hyderabad Date : 14th February, 2022

il t 6ry4q.- "i/ \?- tY t 1 ---l u.t I lrn r\ /c, \*)"--z*l

ForTera S

Vlce Chalrman & Managing Dlrector DIN:00107886

MULLAPUDI & Co., CHARTERED ACCOUNTANTS

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

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

TIMITED REVIEW REPORT

Limited Review Report on Stondalone Ltnaudited Quarterly Financiol Results tJnder Regulation 33 olthe sEBl (Listing obligations and Disclosure Requirements) Regutations, 2075.

To the Board of Directors of Tera Soltware Limited

We have reviewed the accompanying statement of unaudited standalone financial results of M/s TERA SOFTWARE LIMITED, for the quarter ended 31st December 2O2L and the yearto date results forthe period ⁰¹April 2021to 31't Decemb er 2021, being submitted by the Company 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 lndian Accounting Standard 34, lnterim Financial reporting ('lnd AS 34'), prescribed under Section 133 of the Companies Act, 2013 ('the Act'), and other accounting principles generally accepted in lndia. Our responsibility is to issue a report on the Statement based on our review.

We conducted our review of the Statement in accordance with the Standard on Review Engagement (SRE) 241.0, Review of lnterim Financial lnformation performed by the lndependent Auditor of the Entity, issued by the lnstitute of Chartered Accountants of lndia. A review of interim financial information consists of making inguiries, primarily of persons responsible ior financial and Lccounting matters, and applying andlytical 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 lnd AS 34, prescribed 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 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.

for Mullapudi& Co Chartered Accounta FRN.00g7zs ,Xll-tt. B.Krish6{ Sivarari Partner lCAl Ms.No.226476 ^uD tN.Z22z6 \16 Acfrafo I oQ o #ryQ * I Hvrro"-r-- l: #g

Place: Hyderabad Date: t4.02.2022