Ramco Systems Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Mar 2021

1.The above financial results of Ramco Systems Limited, India (the Company) were reviewed by the Audit Committee and approved by the Board of Directors in its meeting held on May 25 2021. The Standalone Financial Results are prepared in accordance with the Indian Accounting Standards (Ind AS) as prescribed under Section 133 of the Companies Act 2013 read with the relevant rules issued thereunder. The Statutory Auditors have carried out an audit of the Standalone results of the Company for the year ended March 31 2021 and have issued an unmodified audit opinion.



2. Employee benefits expense includes cost towards the proportionate fair value of the stock options granted to various employees amortised over the graded vesting period (ESOP Cost). During the quarter there is a reversal of ESOP Cost amounting to Rs.1.59 Mln. ( reversal of Rs.6.00 Mln.).



Employee benefits expense for the year includes reversal of ESOP Cost amounting to Rs.4.14 Mln. (cost Rs.9.18 Mln.).



3. Other expenses for the quarter includes bad debts provision for doubtful debts and advances of Rs.17.13 Mln. (Rs.2.97 Mln.).



Other expenses for the year includes bad debts provision for doubtful debts and advances of Rs.93.54 Mln. (Rs.19.86 Mln.).



4. Other expenses for the quarter also includes foreign exchange fluctuation loss of Rs.0.29 Mln. (gain of Rs.32.57 Mln.) as against gain of Rs.36.85 Mln.

during the previous quarter.



Other expenses for the year also includes foreign exchange fluctuation gain of Rs.52.38 Mln. (gain of Rs.126.67 Mln.)



5. During the quarter the Company had allotted a total of 40149 equity shares of Rs.10 each under the Employees Stock Option Schemes (ESOS) of the Company. Further 1345 equity shares of Rs.10 each were allotted under ESOS after the end of the quarter. Accordingly the paid up capital of the Company increased to Rs.307.51 Mln. from Rs.307.09 Mln. as at December 31 2020.



6. During the quarter the Company has repaid borrowings to the extent of Rs.117.50 Mln. (borrowed Rs.109.58 Mln.). The borrowings as at March 31 2021 stood at Nil. (as at March 31 2020 stood at Rs.962.50 Mln.).



7. Deferred tax for the quarter includes Rs.17.83 Mln. (Rs.319.74 Mln.) and for the year includes Rs.118.05 Mln. (Rs.319.74 Mln.) towards provision for MAT credit created by the utilization of foreign WHT for the discharge of MAT liability which is denied by virtue of insertion of proviso to sub section 2A of section 115JAA. The Company had filed a Writ petition challenging the said proviso in the Honourable High Court of Madras. The Company will continue to make provision for such MAT credit availed, until disposal of the case.



8. The Government of India had enacted The Code on Wages 2019 The Industrial Relations Code 2020 The Occupational Safety, Health & Working Conditions Code 2020 and The Social Security Code 2020 subsuming various existing labour and industrial laws but the effective date is yet to be notified.

The impact of the legislative changes if any will be assessed and recognised post notification of relevant provisions.



9. Estimation of uncertainties relating to the Global Pandemic (COVID-19):

The outbreak of Novel Coronavirus (COVID19) continues to progress and evolve. Therefore, it is challenging now, to predict the full extent and duration of its business and economic impact. The Company has, based on information available, taken into account the possible impact of COVID-19, including on the carrying amounts of financial and non-financial assets and as per the current assessment of the Company, there is no material impact in respect of these in the preparation of the financial statements. However, the impact of COVID-19 on the Company’s financial statements may differ from that estimated as at the date of approval of these financial statements and the Company will continue to monitor the uncertainties caused by COVID-19 to

assess the impact on our future economic conditions.



10. The Company has only one operating segment viz Software Solutions and Services.



11. Figures for the previous period(s) have been regrouped restated wherever necessary to make them comparable with the figures for the current period(s). Figures for the quarter ended March 31 2021 and 2020 are the balancing figures between audited figures in respective full financial years and

published year to date figures up to the third quarter of the respective financial years.