Building a self-

reliant india

Data Patterns (India) Limited

Annual Report 2021-22
Contents
1 Corporate Snapshot
4 Significant product achievements
6 Chairman’s overview
10 Competitive advantage
12 Our product portfolio
18 What Data Patterns’ employee shareholders feel about
working at a passionate and inspiring company
20 Senior Management Team
22 Management discussion & analysis
29 Director’s Report
46 Financial Statements

Forward-looking statement
In this annual report we are presenting some forward-looking
information to enable investors to comprehend our prospects
and take informed investment decisions. This report and other
statements - written and oral - that we periodically make contain
forward-looking statements that set out anticipated results
based on the management’s plans and assumptions. Wherever
possible, we have tried to identify such statements by using
words such as ‘anticipates’, ‘estimates’, ‘expects’, ‘projects’, ‘intends’,
‘plans’, ‘believes’, and words of similar substance in connection
with any discussion of future performance.
We cannot guarantee that these forward-looking statements
will be realised, although we believe we have been prudent in
our assumptions. The achievement of results is subject to risks,
uncertainties and even inaccurate assumptions.
Should known or unknown risks or uncertainties materialise, or
should underlying assumptions prove inaccurate, actual results
could vary materially from those anticipated, estimated or
projected.
We undertake no obligation to publicly update any forward-
looking statements, whether as a result of new information,
future events or otherwise.
C O R P O R AT E S N A P S H O T

Data Patterns
(India) Limited.
Possessing a rich
experience in Avionics,
Naval systems, COTS
boards and fibre-
optics, among others.
Equipped to develop
‘Made In India’ solutions,
reduce imports and
effectively participate
in the emerging Indian
Defence eco-system.
Making Data Patterns
India’s premium
Defence and Aerospace
electronic solutions
company.
 Data Patterns (India) Limited Annual Report 2021-22 2

Our Our Our

Vision Mission Core Values
§ Be a leading Indian Defence and To build world-class products and § Reliability
Aerospace Company, enabling India’s integrated solutions leveraging
§ Trustworthiness
self-reliance in the Defence sector experience alongside modern
technology to enhance customer § Commitment
§ Establish India’s footprint in the
satisfaction and investor value.
global Defence market § Competence

§ Build a socially conscious business § Passion for excellence

by creating value for our customers,
§ Ownership and accountability
employees and all stakeholders
§ Integrity

Our Our
Background Uniqueness
Our Company was incorporated as Indus Teqsite Private Data Patterns is a leading player in India’s Defence and
Limited on November 11, 1998, at Bangalore, Karnataka, Aerospace industry. The Company is respected for its
as a private limited company under the Companies Act, proprietary capabilities: design to manufacture, testing
1956, pursuant to a certificate of incorporation issued to validation and support for products throughout the
by the Registrar of Companies, Karnataka, at Bangalore. life cycle. Data Patterns is the only Indian company in the
Subsequent to the merger with our erstwhile subsidiary, the Defence and Aerospace sectors to offer complete systems.
name of our Company was changed to Data Patterns (India)
Data Patterns’ core competence covers the entire spectrum
Private Limited and a fresh certificate of incorporation dated
of electronics including Processors, Power, RF and
August 4, 2021 was issued by the Registrar of Companies,
Microwave, Embedded Software and Firmware. This unique
Tamil Nadu. Our Company was converted into a public
capability allows the Company to offer complete solutions,
limited company pursuant to a special resolution passed
an area addressed only by international OEMs.
by our shareholders at the Extraordinary General Meeting
held on August 12, 2021 and the name of our Company was Data Patterns has succeeded in building products in high
changed to Data Patterns (India) Limited. A fresh certificate technology domains such as Radars, Electronic Warfare
of incorporation, consequent upon conversion to a public (EW), Communications, Satellite Systems, Video, Control
limited company, was issued by the Registrar of Companies Systems and Navigation, besides others. It is one of the
on September 13, 2021. Data Patterns (India) Limited few Indian companies offering indigenously developed
subsequently got its equity shares listed on BSE Limited and products catering to the entire spectrum of Defence
National Stock Exchange Limited on December 24, 2021, platforms – space, air, land, and sea. The Company
through an Initial Public Offering. The issue size of the IPO established its quality management system in line with the
was INR 648.22 Crore with INR 300 Crore as fresh allotment demanding standards of AS9100 Rev. D by TUV-SUD, an
of shares and INR 348.22 Crore through an Offer for Sale internationally acclaimed certification.
by the existing shareholders. Primary allotment consisted
of INR 60 Crore of private placement and INR 240 Crore
through the IPO.
3 Corporate Overview Statutory Reports Financial Section

Our Our
Team Work Infrastructure
The Company comprised 888 Data Patterns’ modern manufacturing facility consists of 2,00,000 square feet
employees as on March 31, 2022, factory built on 5.75 acres of land in SIPCOT IT Park, Chennai. It has facilities for
marked by competencies across design, manufacturing, qualification and life cycle support of high reliability
domains. About 211 people had electronic systems used in Aerospace and Defence applications.
been with the Company for more
The facility includes an EMS line, clean rooms, board, box and rack level integration
than a decade as on March 31, 2022.
capability and environmental testing to cater to the requirements of quality and
complex production.
Data Patterns is in the process of upgrading and expanding the current facility, with
a proposed doubling of available floor area and manufacturing capacity, as well as
addition of capability of handling large and heavy equipment, integration of large
radars and mobile electronic warfare systems, satellite integration facility. The new
infrastructure is slated to be ready by September 2022.
Data Patterns is also in the process of acquiring an additional 2.81 acres of adjacent
land for further expansion.

Expansion Existing Facility Enhancement

Our Large Systems Integration Hangar Design & Development Facility
Order Book
Complete Radar Integration Additional Space For Design and

498.0
Development Resources
Electronic Warfare Vehicle Integration Clean Room for Satellite Integration
INR Crore, March 31, 2021 Additional Test Facility Additional EMS Line
Augmented Environmental Test
Infrastructure

476.1
INR Crore, March 31, 2022
Multi Ton material handling

Awards
& Recognition
IESA and NASSCOM Deftronics Award in 2016. TiECON Made in India Award in 2016.

Award by the Society of Indian Aerospace Technologies and Project Leader Award by Project Management Associates
Industries (SIATI) in 2017 for outstanding contribution and for a leadership role in the successful design development
achievements in the Defence and Aerospace sectors and installation of the world’s first 205 MHz Stratosphere
Troposphere Wind Profile Radar in 2018.

Institute of Directors’ Professional Excellence Award in 2019 Alagappa Chettiar College of Technology Distinguished
from the Governor of Tamil Nadu Mr. Banwarilal Purohit. Alumni Award for the year 2020 – 2021, was conferred upon
Mr. S Rangarajan, CMD of Data Patterns (India) Limited by
Mr. R N Ravi, Governor of Tamil Nadu in 2021.
 Data Patterns (India) Limited Annual Report 2021-22 4

Significant product achievements

Second Launch Pad Fire Control Radar

Countdown System Systems Upgrades
§ The Launch Countdown System The Fire Control System for Brahmos Data Patterns upgraded six Tracking
for ISRO (Sriharikota) was designed was designed for the first time in Radars for ISRO with contemporary
and developed for the first time in India by Data Patterns. electronics and software algorithms
India by Data Patterns. that were developed within the
Air Version Launcher for BrahMos
Company.
§ The system has operated without on Sukhoi-30
any downtime for nearly two The Company developed the Air Coastal Surveillance Radar
decades. Version Launcher for the prestigious Data Patterns designed and
BrahMos project on Sukhoi-30. developed a Coastal Surveillance
§ The Launch Pad and Countdown
Radar for ISRO; the nature of the
facilities have been configured with Other Electronic Systems for
projects was the first in India.
indigenously designed electronic BrahMos
solutions. The Company developed Other LLTR Phased Array Radar
Electronic Systems for BrahMos, Data Patterns developed most of
§ More than 95% of the flight
enhancing its respect as dependable the electronics including the phased
systems / components are tested
Indian solutions provider for array antenna of the LLTR Phased
using indigenous test solutions
prestigious national projects. Array Radar.
developed by Data Patterns.
RF Power Transmitters
Data Patterns developed RF Power
Transmitters.
Test equipment
Data Patterns designed and
developed a number of test
equipment for the first time in
India - Sea King ATE, Laser Guided
Bomb Kit Tester, Digital Flight
Control Computer, Generic RF ATE,
Satellite Bus Management System
and Brahmos Missile Checkout
Equipment.
5 Corporate Overview Statutory Reports Financial Section

Electronic Satellites Precision Approach

Warfare Suite Radar
Data Patterns developed a Wide Data Patterns developed its This radar was designed and
Band Fast Scan Receiver Exciter, first Nano satellite (NUSAT) that developed for the first time in
3-Channel Monitoring Receiver, was subsequently deployed; it India comprising the following: T/R
Airborne Direction Finder, V/ demonstrated redundant Defence Modules, Pedestal System, Antenna,
UHF Monitoring Receiver, V/UHF quality as a part of a student satellite Radar Computer, Radar Algorithms,
Search Receiver and Jammer Power programme. Power Supplies, Display Consoles,
Amplifier. Shelter and Chiller as well as
Integrated testing.
Range of indigenous Avionics and
Flight Systems
Data Patterns developed Flight
Control & Actuator Controller for
Nirbhay UAV, Signal processing
unit for Jet Trainer, Flight Control
for RUSTOM UAV, Torpedo Actuator
Controller and Missile Actuator
Controller.
Data Patterns designed the Doppler
Velocity Sensor (DVS) for Helicopters,
which will be flight-tested shortly.

Data Buoy & Tsunami- Avionics Display

Warning System
Data Patterns developed a Data Buoy Data Patterns designed and
and Tsunami-Warning System used developed Smart Standby Display
in the following applications: wind Unit for LCA, Smart Display Unit for
speed and direction, atmospheric IJT, 4 ATI Display Unit for IJT, Foldable
pressure; air temperature, humidity Display for Chetak, etc.
and conductivity; sea surface
Light Utility Helicopter Cockpit
temperature; current speed and
Display
direction and wave parameters;
Data Patterns developed a Smart
water quality parameters and
Cockpit Display and Data Interface
subsurface temperature. The system
Unit.
is equipped with GPS, beacon light
and satellite transceiver as well as
lithium / lead acid battery with a
solar charger.
 Data Patterns (India) Limited Annual Report 2021-22 6

CHAIRMAN’S OVERVIEW

“At Data Patterns,

we are attractively
placed to
capitalise on an
unprecedented
opportunity.”
S. Rangarajan, Chairman and Managing Director
7 Corporate Overview Statutory Reports Financial Section

Overview
I am proud to communicate for This growth in absolute numbers
The Company
the first time with our larger family was also accompanied by
has designed of shareholders following the improved financial hygiene.
complete systems Company’s initial public offer in The Company reported a 400
supported by 2021. bps increase in EBITDA margin
proprietary domain to 46%, the highest in the
India’s defence and space sectors
Company’s existence. The fact
intellectual property are passing through an inflection
that the Company’s gearing
(electronic modules point and your Company is
strengthened from 0.16 to 0.01
attractively placed to capitalize on
and mechanical this unprecedented opportunity.
indicates that the business is
systems), being grown entirely with net
This optimism is reflected in the worth. The increase in interest
complementing profitable growth reported during cover from 11 to 23 is a measure
‘Designed in India’ the last financial year. of our enhanced liquidity. The
with ‘Make in India’. Revenues grew 39% to a record Company reported a cash profit
INR 315 Crore (higher than the of INR 105.65 Crore during the
projected INR 300 Crore); EBITDA year under review, a sizable
growth was higher at 53% while corpus available for reinvestment.
PAT increased 69% to INR 94 Crore, The Company also finished with
the highest in the Company’s INR 117.08 Crore of cash on its
existence. These numbers validate books as on March 31, 2022, a
the robustness of the Company’s robust foundation on which to
business model and capacity to build the business, address wider
deliver a disproportionately higher opportunities and grow faster.
bottom-line growth for increases
in revenue.
 Data Patterns (India) Limited Annual Report 2021-22 8

Inflection point imports and seek a larger proportion of the full potential of their knowledge,
India’s Defence sector is emerging as its defence and space requirements from entrepreneurship and economies.
one of the most attractive sectorial within. As an extension of the Make in
The result is that across the course of the
opportunities in the world - for the size India (Atmanirbhar) priority, the Indian
decade, one may begin to see ‘Designed
and sustainability of the opportunity. government opened Defence equipment
by India. Made in India’ emerging as an
manufacture to Indian players by banning
India was the third largest defence important theme across the country’s
the import of a range of equipment.
equipment spender in the world in 2021; Defence sector.
the country was also the world’s largest The government banned the import
of 101 Defence products; the DRDO Prepared
arms importer. India will continue to be At Data Patterns, we are prepared for this
among the world’s largest spenders on announced the indigenisation of
108 systems and sub-systems. These exciting future.
its defence and space sectors; as the
country’s high economic growth sustains announcements represent the most One, every part that we manufacture is
through the decade and after, there decisive initiatives by any Indian designed within our Company, resulting
could be a larger greater allocation for its government to promote the cause of in an integrated operation that maximises
defence needs. India’s defence sector. value addition.

Besides, India is located in a geo-politically The outcome of these decisions have Two, we are focused on building
sensitive part of the world, sharing been extensive. Even as their implications complete systems, which immediately
borders with China, Pakistan, Bangladesh, are only nascent and their full outcome graduates us into an exclusive league of
Nepal and Myanmar. The northern tip of will perhaps be significantly visible by companies who sit at the national high
the country is one of the world’s most the end of the decade, the first signs table by the virtue of being not merely
militarily sensitive regions, warranting a are already evident. Tender sizes have component manufacturers but complete
growing Defence outlay. A progressive increased and the order books of defence solution providers.
investment in Defence is proving to be product manufacturers are beginning to
grow; defence players have embarked Three, in a rapidly transforming world
an effective deterrent to international where new competencies will be
conflict. In view of this, Defence sector on capital investment programmes; the
sectorial employment base is beginning required, our Company possesses the
spending is not only needed for India but credibility, visibility and liquidity to enter
is being increasingly viewed as necessary to widen.
into business strengthening partnerships
for global peace. We are encouraged that the national with global technology providers. We also
The Indian defence and aerospace leadership continues to emphasise its possess the competence to progressively
segment is anticipated to grow from commitment to indigenization. The absorb these techniques, strengthening
USD 63.7 Billion in 2021 to an estimated Indian Prime Minister has repeatedly our captive knowledge pool.
USD 70 Billion by 2030; the cumulative spoken of the country’s ‘addiction to
imports’, a policy driven need to wean Four, we are a profitable Company with
revenue generation opportunity for the a growing order book and adequate cash
Indian defence sector of USD 306.95 the country off international equipment
and graduate towards the use of world- on our books to weather any unforeseen
Billion between 2021 and 2030 represents order slowdowns. Besides, our cost
one of the largest such opportunities in class indigenous equipment, which
could create a larger eco-system. This structure is lower by the virtue of an
the world. extensive inhouse integration.
eco-system will attract long-term players
Turning inwards and start-ups; we foresee the emergence Five, a large number of our products have
One of the most decisive changes to have of a vibrant innovation invested sector; been validated by DRDO, facilitating their
transpired within India’s defence sector we see more interest drawn into this inclusion in our overall solution.
is the decision of the Indian government space; we see more defence product
Six, when the government insists on
to moderate the import of defence manufacturing companies going
‘proof of design’ in India, we will stand a
equipment and source it increasingly public and strengthening their access
better chance of carving away a superior
from domestic manufacturers instead. to long-term funds; we see the gradual
market share on account of our complete
evolution of India’s Defence sector to
Over the next few years, India will shift the integration from the design stage
the global playing field; we see this
needle: the country intends to moderate forwards.
transition empower Indians to achieve
9 Corporate Overview Statutory Reports Financial Section

Building a stronger company We are focusing on large contracts that I am optimistic that the market for
At Data Patterns, we are not complacent enhance our capacity utilization and systems is opening out to us, graduating
with what we have; we are engaged ensure superior cost amortization. us from components to larger systems
in building a stronger Company with play where we possess rich experience.
We will address large Ministry of Defence
proactive responsiveness to capitalize on orders where it would be possible for us In the past, the Company succeeded
the unfolding sectorial opportunity. to reuse existing designs, shrinking our amidst global competition against the
We will deepen our presence in the area time-to-market. best companies and the time has come
of space and full satellites, catalyzing the to carve out a larger national and global
We expect to derive a larger percentage
country’s priority. presence.
of revenues from manufacturing / repeat
We will continue to focus on the creation contracts rather than development Following the pandemic, which was
of distinctive intellectual property and contracts that usually take longer, marked by supply chain challenges,
build entire systems as a base strategy strengthening our cash flows. there is a greater awareness for national
while exploring multiple market self-sufficiency – especially in the Defence
We will nurture and grow a large eco-
segments. sector - which makes the presence of
system of competencies, making it
Data Patterns more relevant.
We will deepen collaborations with possible for us to respond quickly and
international companies where a competently to customer needs. The Company has designed complete
large part of the proprietary design systems supported by proprietary
We will recruit engineers following a gap
is complemented with outsourced domain intellectual property (electronic
analysis and train them with the objective
design, resulting in lower costs, quick modules and mechanical systems),
to be opportunity ready, which could
turnarounds and superior solutions. complementing ‘Designed in India’ with
empower us to grow around 4x.
We already possess inhouse design ‘Make in India’.
We have been empowered with
capabilities for Automatic Test Equipment The Space Policy provides clarity on the
certifications for DO 254, DO 178, IV&V
(ATE) for certification and testing of country’s medium-term direction; by the
(independent validation and verification
developed/produced equipment; virtue of having invested in this space
for flight certification approval) and
we possess an inhouse EMS line and across the last decade, we are prepared
knowledge of all MIL Standards and
Environmental Testing Facility for easy for the emerging opportunities.
design to meet the standards including
debugging, ease of manufacture, quality
EMI/EMC, Lightning protection, etc. As we grow from this point onwards,
control and delivery; we possess Quality
the revenue lumpiness that was visible
Assurance / Quality Control capabilities We expect that our expanded
in the past could yield to a gradual
with documentation discipline and infrastructure of around 100,000 sq ft,
smoothening.
in-house training. We will continue to equipped to build full systems, will be
design products with DRDO, embracing ready from the second half of the current I am optimistic that the INR 476 Crore
large complex solutions involving digital, financial year. order book as on March 31, 2022 (INR
RF and domain level contributions with 498 Crore on March 31, 2021) could
In view of these realities, we are in the
software with the objective to carve out a be liquidated in the next two years in
right place at the right time with the right
large DRDO wallet share. addition to more orders being addressed,
capabilities.
enhancing value for all the stakeholders
We build systems for all platforms (space,
air, land and sea); we have worked Optimism associated with our Company.
on prominent projects for marquee The Ministry of Defence is showing a
customers and enjoy national respect preference for complete systems and
within our sector. solutions, covering capital acquisitions,
repair and upgrades. India’s Defence
We possess specialization in the sector is evolving from the manual to
electronics segment; we are focusing electronic and digitalized interventions.
on building large equipment inhouse, The quantum of legacy equipment that
capturing the complete value chain. S. Rangarajan
will need to be replaced, coupled with
Chairman and Managing Director
fresh buying, will be vast.
 Data Patterns (India) Limited Annual Report 2021-22 10

C O M P E T I T I V E A D VA N TA G E

At Data Patterns, readiness

comes from a robust
foundation of pioneering
achievements

Data Patterns comprises more Data Patterns is the only Data Patterns is the only
than 450 engineers in the Indian Defence and Aerospace Indian company with design
specialised areas of design and company offering building capabilities covering the
engineering blocks to end systems entire spectrum of electronics,
including processors, power,
RF and microwave, embedded
software and firmware

Data Patterns possesses Data Patterns has a range of Data Patterns is a process-
robust domain knowledge in qualified products available driven company with certified
the areas of radar, electronic for prospective production infrastructure
warfare, communications, contracts
satellite systems, video control
systems, video, control systems
and navigation

Data Patterns’ successful public issue, oversubscribed 119 times, stands testimony to the acceptance of the company
by the public as one of the key players in the design, development and manufacture of Critical Defence Systems in the
private sector
11 Corporate Overview Statutory Reports Financial Section

CORE COMPETENCE

At Data Patterns, readiness

also comes from an
extensive electronics domain
knowledge across platforms

Overview
India accounts for the world’s India Electronics and be tapped as per a 2018 estimate
third largest army, fourth largest Semiconductor Association (IESA), (indicating that the figure has
air force and seventh largest the trade body representing only increased since). There is a
navy. The country is the world’s the Indian electronic system second estimate that is even more
fourth largest Defence spender. design and manufacturing staggering: a probable USD 4-5
Ironically, only around 30% of the space, has envisioned India as a Billion gap in the country’s ability
equipment used by the armed prominent player in the design to supply Defence equipment and
forces is manufactured within and manufacturing of electronics demand.
India. Defence companies the systems by 2025, with electronics
A leading industry expert
world over benefit most from representing the core of every
estimated that the market
India’s rising expenditure to manufactured product.
opportunity for Defence
protect itself.
IESA has tied up with the National electronics in India would be
With an increasing quantum Association of Software & Services around USD 70-72 Billion in a
of Defence equipment being Companies (Nasscom) and decade. This would result in the
digitalised, the electronics Munich-based consultancy Roland development of the next frontier
segment of the Defence sector Berger to estimate the size of the of technology, comprising plasma-
is being seen by many as an electronic opportunities available based rocket technology, stealth
attractive play. The size of this in India’s Defence sector. The result technology and deep technology
‘niche’ system of systems, a web of of the survey was a staggering to address military applications
technologies, has been estimated USD 55 Billion opportunity in
at USD 28.7 Billion. Defence electronics waiting to
 Data Patterns (India) Limited Annual Report 2021-22 12

Our product
portfolio

COTS ATE and Space

Boards Test systems Systems
Built in adherence with open Data Patterns’ longstanding business Data Patterns manufactures a
architecture standards, the Company has comprised the development number of products for space
designs COTS module products that of Automated Test Equipment for applications at its ISRO-approved
are used in rugged applications and critical Aerospace requirements. manufacturing facility in line with
automatic test equipment platforms. customer specifications. These
Projects executed include the
include nano satellite, ground
The open standard form factors following: Avionics Suite Tester,
station, ATE for space systems
comprise cPCI, FMC & XMC, IP, MM, BrahMos Checkout, Digital Flight
and launch pad automation at
PCI, PCMCIA, PMC, VME, VPX and VXI, Control Computer, Go No Go testers,
SDSCSHAR.
etc. The COTS product provides the Power Module Tester, Generic RF
technological capability to develop ATE, Cable Harness Test System, Bus
systems level products around short Management Unit, Count Down
turnaround tenures. Test System, INTU ATE, Redundant
Strap Down INS ATE, Scan Mirror Test,
Strain Data Acquisition System and
Laser Guided Bomb Tester, among
others.

Radio Frequency
and Microwave
Data Patterns has a strong Radio Frequency and Microwave engineering capability.
This comprises engineering talent, forward-looking investments in RF test and
measuring instruments and competence to deploy latest technologies. A growing
need for Radar, Electronic Warfare and Communication domains has empowered
Data Patterns to develop a range of building blocks such as TR Modules, Up and
Down Converters, Power Amplifiers, Transmitters, Filters, Combiners and Dividers.
13 Corporate Overview Statutory Reports Financial Section

Electronic Identify friend Radar and Radar

Warfare or foe sub-systems
Data Patterns developed state- Data Patterns designs and Data Patterns provides a variety of
of-the-art integrated solutions for manufactures a range of STANAG complete Radars and Radar sub-
spectrum monitoring, wide band 4193-compatible products for systems. These comprise Airborne
searching, ECM and ESM, direction airborne and ground applications Central Unit for an Early Warning
finding for airborne and ground (Transponders, Interrogators, Radar, qualified for aircraft LRU
mobile application standard Combined Interrogator & standards, Multifunctional Airborne
products such as VHF/UHF Search Transponders, ‘O’ and ‘I’ Level Testers). Radars, Bird and Drone Detection
Receiver, HF Search Receiver, Radars, Tracking Radars, Phased Array
Monitoring Receiver and Jammers. Antenna Components, Wind Profile
Radar, Doppler Weather Radar and
Coastal Surveillance Radar.

Cockpit and
Rugged displays
Data Patterns offers a range of multi-function rugged LCD displays for rotary and
fixed-wing aircraft. The current range extends from 3” to 20” units. All Avionics
displays offer leading-edge functionality including on-board smart processing
and internal and external sensors support video formats (RS170, Stanag 3350, PAL,
VGA, DVI, ARINC 708 and ARINC 818 standards). The integration of the latest NVIS
technologies and the optical stack-up facilitates high brightness, high contrast
sunlight readable screens with minimised reflection, combined with low power
consumption.
 Data Patterns (India) Limited Annual Report 2021-22 14

Avionic Communication Power supply

systems products equipment
Data Patterns designed, prototyped, Data Patterns designs and Data Patterns manufactures power
qualified and manufactured manufactures standard supply equipment of various ratings
products for airborne applications communication products for most for air, naval, ground and space
in manned and unmanned aircraft. military protocols like MIL-STD- applications. These products are
Data Patterns has delivered the 1553B, ARINC-429, ARINC-708 and implemented in VPX, VME, cPCI
largest number of qualified LRUs RS422. A spread spectrum modem and custom-form factor designs.
designed in India from a single is available for terrestrial and satellite Most products are benchmarked
source. The Company’s products communication requirements. These to demanding MIL-STD-461C and
incorporate the latest techniques products are designed primarily MIL-STD-810D requirements or
from thermal engineering and for on-board interfaces in Avionic the equivalent JSS 55555. Airborne
mechanical ruggedisation with systems and also for Automatic Test versions are designed to meet
obsolescence management and Equipment. MIL-STD-704D. Specific design
long-term support. constraints are handled with
respect to long-time storage life
and suitability for air-cooled or
conduction-cooled applications.

Naval Laser and electro optic Console

systems system
Data Patterns designs and Data Patterns developed and Data Patterns provides system
manufactures a number of naval manufactured a range of electro- level consoles for a number of
products for naval shipyards, optical products for surveillance, programmes.
including Garden Reach Shipbuilders imaging and testing requirements.
& Engineers Ltd. and Mazagon Dock
Limited.
15 Corporate Overview Statutory Reports Financial Section

Fibre Digital IF processors & High speed

optics waveform generators processors
Data Patterns utilises fibre optic Data Patterns provides these Data Patterns has developed a
communication for high speed products through modern high- state-of-the-art line-up of high-
data transfer requirements speed digitisers and digital-to- end processing modules utilising
around protocols like Serial FPDP, analog converters; these are backed fast multi-core processor-based
Aurora, PCI Express and Gigabit by FPGA-based processing that architecture as well as FPGA-based
Ethernet on Fibre Optic Medium. implements baseband tuning and processing engines. These are used
Solutions using DWDM and EDFA high speed I&Q vector generation for Radar Signal Processing, Image
components for high density fiber algorithms. These find application Processing and similar requirements.
optic communication solutions are in real-time signal processing, Processors are available in VPX
implemented. electronic waveform generation, as well as older VME and cPCI
digital tuners and communication architectures.
products.

Navigation Software and

system application products
Data Patterns designed and Data Patterns developed standard
manufactured Fibre Optic Gyrobased software solutions for the
inertial measurement units for automation of test equipment
underwater applications with all application development (DP-
algorithms, including Kalman filters CUTE), software development and
and co-ordinate transformations. debugging in multi-processor
environment (DP-CHRONO).
 Data Patterns (India) Limited Annual Report 2021-22 16

Some of our
products that
redefine self-reliance
in India C-Band Doppler
Weather Radar

Monopulse X-Band Doppler Wind Profile

RF Seeker Weather Radar Radar
17 Corporate Overview Statutory Reports Financial Section

Software Defined Radar Warning

Radio - Next Gen Receiver - Next Gen

Radar For COMINT Defence

Airborne Platforms - Next Gen Satellites
 Data Patterns (India) Limited Annual Report 2021-22 18

What Data Patterns’ employee

shareholders feel about
working at a passionate and
inspiring company

“Data Patterns provides talent with “I have been with Data Patterns from “Data Patterns emphasises gender
opportunity from different parts of 1995 and took a break in 1998 on equality. There is no gender
India and not only metro cities. The account of my pregnancy. When I bias here; a number of women
Company is an equal opportunity re-joined after a year, I was offered occupy senior positions. We are
provider to succeed in a cutting- the same designation and respect. I given opportunities based on
edge domain in modern India.” have seen this company grow from our performance. Unlike other
20 to more than 600 employees. I organisaitons, female employees
Karthick R,
head a team of 162 members (earlier directly go for pitch meetings
Senior Manager, Human Resource
only six).” to demonstrate products or for
Development
preliminary discussions with
A.P Soorimala,
prospective clients.”
General Manager - Production
Andal N,
Deputy General Manager - Quality
Assurance and Control

“My favourite memories of Data “I am a cancer survivor, had two “One of the most professionally
Patterns are of successful product surgeries for colon cancer two years satisfying things about working
launches. Four years ago, we ago and I am proud to say that Data at Data Patterns is that we are our
launched a nano satellite and were Patterns gave me a lot of support in own competition. With the success
eagerly waiting and checking at the terms of leave and insurance. When of every product launch, we break
power station. Then it generated I was cleared by the doctor, I had to our previous record in terms of
the first response. We were elated work for two weeks wearing a belt, performance and quality. If one is
beyond imagination.” but following that my recovery was a fresher wanting to do something
quick as I was at a place I loved.” different and not a regular 9-to-5 job,
Ramesh M,
then this is the place for that person!”
Manager Technology Chitra,
AGM - ADM & Staff welfare Mariappan S,
Manager Technology
19 Corporate Overview Statutory Reports Financial Section

“I was once suffering from health I am privileged to be a part of “At Data Patterns, we do not just take
issues and since I was away from the wealth creation process and a customer’s brief and deliver. We
home and without my family, I it has shown that long-term suggest superior solutions that can
was compelled to take leave for a commitment and hard work pay potentially take the client’s interests
few days. When I returned, the MD off. The IPO process has shown the ahead.”
enquired about my absence. I told real market value of our work in the
Kuppu Swamy G,
him about how alone I felt without defence and aerospace product
Vice President, Business Development
my family. He said: ‘Why would you development. The IPO process
say that you are alone? We are there motivated us to perform beyond
for you. If you face any problem we market expectations and scale our
are here to help you. Always!” organization further.
Kingshuk Mitra, K V Muni Prasad,
Manager, Technology Assistant General Manager-Technology

I was uplifted by the shares that “Data Patterns is a completely “When I was expecting a baby, I
were given to me. It’s always nice transparent organisation with no was on a four month maternity
to be appreciated financially! Since politics. This encourages us to always leave but felt that I needed more
I’ve joined the company in 2003, it do what is good for the Company time. I approached my Director for
has been an adventure as well as a and customers. Something that I am extended leave; she agreed without
learning experience. Data Patterns proud of is when I was in charge of hesitation. To this date, when I
provides abundant opportunity. I feel the Precision Approach Radar from convey this to my friends, my eyes
so fortunate to work for a company scratch. We completed trials without moist. Through such instances,
that encourages its employees to any costs to our customers. What Data Patterns has established an
keep addressing new goals and really stood out was our superiority emotional attachment with its
gives them the support and tools to over our American competitors. employees. The Company is not
do so. We were awarded the project for merely respected; it is loved.”
delivering at a much lower cost.”
Senthil Kumar J, Jayanthi Devarajan,
Associate General Manager Cdr (Retd) Ramesh V N, Manager, HR Development
Technology General Manager, Programs

Healthy organizations are good for “As soon as I joined this company “I have been 19 years with Data
business, good for employees and in May 2008, I was assigned a major Patterns only due to the trust,
good for society. We are privileged project. The best thing about this motivation, guidance and freedom.”
and honoured to be a part of a great organisation is that if you give your
S. Raja,
organization. best then rewards arrive your way in
Senior Manager (Supply chain
a similar fashion.”
G.Soundara Pandiyan, management)
Senior Manager - Projects Jagannathan J,
Sr. Manager - Projects
 Data Patterns (India) Limited Annual Report 2021-22 20

Senior
Management
Team
Mr. S. Rangarajan, Chairman and Managing Director

A Masters from IITM, fueled by a burning forums and think tanks for policy
desire to become a technocrat led making in the Industry.
him to found Data Patterns in 1985. A
recipient of many awards instituted by
the Govt and industry, he is a sought
after member of CII, FICCI and IDAT, to
name a few, and is involved in several

Mrs. Rekha Murty Rangarajan, Whole-time Director

A Masters in Advance Applied Director by Heading Human Resource

Psychology from Madras University. Development, Administration, Process
With a very significant industry Engineering, Special Projects and Facility
experience and being a Promoter since Maintenance.
its inception, it was but natural that
she became an integral part in the
growth of Data Patterns as a Whole-time

Mr. Desingurajan P, Chief Technology Officer

An outstanding Electronics Engineer currently heads & oversees complete

and a rational thinker with a keen design, development and validation of
sense of analytical skills came aboard Data Patterns’ entire range of products.
Data Patterns in 1990 to fulfill his
dream of working in Core Electronics.
Desingurajan has spearheaded Product
Development for the last 30 years and

Mr. Vijay Ananth K, Chief Operating Officer and Whole time Director

A Postgraduate in Software with him to take charge of first the entire

immense knowledge spreading Software Development Team with
across all Operating Systems joined additional responsibility of Information
Data Patterns in 1998 with a passion Technology. With his focus on project
to make a difference in Core System delivery, he became the natural choice
Software. His dynamic leadership to head operations.
and out-of-the-box thinking soon led
21 Corporate Overview Statutory Reports Financial Section

Mr. Thomas Mathuram, Chief Marketing Officer

A Post Graduate from IIT Madras, his joining in 2000, he is responsible for all
role is strategic with an eclectic mix the bids and proposals submitted by
of technological solution enabling the company to ensure Data Patterns’
facets which range from nurturing presence in all relevant enquiries and
technical concepts to meet customer enhance market share.
specifications. A custodian of the
company’s marketing collaterals since

Mr. V. Venkata Subramanian, Chief Financial Officer

An experienced practising Chartered he is an able book keeper of the

Accountant (CA) joined Data Patterns in Company’s Finance, Accounts, Statutory
2000 to build the Accounts and Treasury Compliances and Treasury operations.
Department. With his sincerity, wisdom
and a sharp focus on Compliances,
current Accounting Standards and
a strong rapport with many banks,

Wg Cdr R. Soundararajan, Senior Vice President, Sales & Marketing

A BE (Hons) degree from the (then) at BEL. With his vast experience and
Madras University and an M.Tech from Wisdom he heads the Marketing
IIT- Kharagpur. Has been with Data and Sales Division and is primarily
Patterns with over 20 years. He has responsible for it’s presence in The
served in IAF, DRDO and BEL, including Market.
heading International, Domestic and
System Marketing as General Manager

Mr. G. Kuppu Swamy, Vice-President, Business Development

A sales professional with a rich Patterns loyalist. He is responsible for All

experience in marketing & sales in the India sales/business development with
Electronics domain, prior to joining Data a focus on DRDO.
Patterns in 2003. A born salesman and
a multi-linguist, he is an asset to the
company and can talk for hours before
he turns a hesitant customer into a Data

Mrs. R. Nandaki Devi, Deputy General Manager, Quality Assurance and Control

A BTech (ECE) with Advanced Diplomas Quality Assurance Team from scratch. As
in Software Quality Assurance, CSQA the Management’s representative, she
(Certified Software Quality Analyst) & has spearheaded the gamut of Quality
CSTM (Certified Software Test Manager), Process Certifications.
lead auditor for ISO9000 certified by
TQMI joined Data Patterns in 2001 and
has been instrumental in building the
 Data Patterns (India) Limited Annual Report 2021-22 22

Management
discussion & analysis

Global economic review increase in global oil and commodity highest since 2011, especially in the
The COVID-19 crisis continued to impact prices that aggravated supply side advanced economies, catalysed by a run
the first quarter of FY 2021-22 with the constraints. up in commodity prices. Some emerging
delta variant playing havoc, impacting the and developing economies were
Despite all the above factors, the global
global economy. While the delta variant positioned to withdraw policy support to
economy grew at 6.1% in 2021 compared
reasonably settled in the second quarter, contain inflation even as the economic
to a de-growth of 3.1% in 2020 (Source:
emergence of the Omicron variant in recovery was still incomplete.
IMF April 2022 report). This improvement
the third quarter created confusion. This was largely due to increased vaccination The global economy is projected to grow
year also saw a significant supply side rollout the world over and a revival in at a modest 2.6% in 2022 following the
constraint, resulting in an inflationary economic activity based on catch-up Russia-Ukraine crisis. A higher interest
pressure. consumption. rate environment could affect emerging
During the beginning of CY22, when markets and developing economies with
The global economy was affected by
the situation had just started stabilizing, large foreign currency borrowings and
a shortage of semiconductor chips,
we were again back to uncertainty with external financing needs in 2022.
prohibitive freight rates and shortage
the Russia-Ukrain crisis that started in of containers/aircrafts in 2021, affecting
February 2022. Multiple sanctions were economic recovery. Inflation was at its
imposed on Russia, leading to a sharp

Regional growth (%) 2021 2020

World output 6.1 (3.1)
Advanced economies 5.0 (4.9)
Emerging and developing economies 6.3 (2.4)
(Source: IMF, World Bank, UNCTAD)
23 Corporate Overview Statutory Reports Financial Section

Indian economic overview Indian economic reforms and be about INR 5 Trillion. Besides, the
During the year under review, macro Budget 2022-23 provisions government’s production linked
headwinds of the new Covid variant, The Budget 2022-23 seeks to lay the incentives (PLI)–led capex should
along with inflation, impacted the Indian foundation of the Indian economy over generate an incremental INR 1.4 Trillion
economy. However, the Indian economy the ‘Amrit Kaal’ period of the next 25 years in sectors like consumer durables,
reported an attractive recovery in FY leading to 100 years of independence in pharmaceuticals and automobiles.
2021-22, its GDP rebounding from a 2047. The government is emphasizing Indian defence & aerospace
de-growth of 7.3% in FY 2020-21 to a the role of PM Gati Shakti, Inclusive segment review
growth of 8.7% in FY 2021-22. By the close Development, Productivity Enhancement India’s defence and aerospace
of FY 2021-22, India was among the six & Investment, Sunrise Opportunities, manufacturing market was valued at INR
largest global economies, its economic Energy Transition and Climate Action, as 85,000 Crore in 2021 and is expected to
growth rate was the fastest among well as Financing of Investments. reach INR 1 Lakh Crore by 2022 (Sourcing:
major economies (Say China).There were Economic Times), driven by a substantial
The capital expenditure target of the
positive features of the Indian economy demand for modern infrastructure and
Indian government expanded by 35.4%
during the year under review. government focus. Due to these factors,
from INR 5.54 Lakh Crore to INR 7.50 Lakh
India attracted the highest annual FDI Crore. The effective capital expenditure for Indian defence and aerospace segment
inflow of USD 83.57 Billion in FY 2021- FY 2022-23 is seen at INR 10.7 Lakh Crore. is expected to reach USD 70 Billion
22, a validation of global investing An outlay of INR 5.25 Lakh Crore was by 2030.The Indian defence market
confidence in India’s growth story. made to the Ministry of Defence, which is represents accessible cumulative revenue
The Government of India has been 13.31% of the total budget outlay. Under generation opportunity of $306.95
strengthening its focus on ‘Atmanirbhar the Atma Nirbhar Bharat campaign, the Billion between 2021 and 2030. India
Bharat’ and reducing dependence on Defence sector has been recognized has the second largest armed forces in
imports, especially in sectors like defence. among the core areas to boost ‘Make the world, accounting for 3.7% of the
in India’. In a major push towards Atma global military spending, making it the
The Government enhanced FDI limit in
Nirbhar Bharat in the military sector, third highest military spender in the
the Defence sector up to 74% through
the Prime Minister Narendra Modi-led world. The expenditure on the defence
the automatic route for companies
government is going to shelve a number sector constituted 15.5% of the Central
seeking new defence industrial license
of defence import projects being Government’s budget and nearly 2.1% of
and up to 100% by the government
acquired through the buy (global) route. India’s GDP for FY 2020-21. With a growing
route wherever it is likely to result in
demand from the defence sector, the
access to modern technology. The Indian This initiative from the government
government identified it as one of the
government launched a four-year INR comes at a time when the centre is
core areas to boost ‘Atmanirbhar Bharat’ or
6 Lakh Crore asset monetisation plan coming up with the new defence
‘Self-reliant India’.
(roads and highways, pipelines, power production and export promotion
transmission lines, telecom towers, policy, which will lay down the way for The transformation of India’s defence
railways station re-development, private strengthening defence production within sector from being a net-importer to
trains, tracks, goods sheds, dedicated the country and help in export to friendly self-reliance is expected to revolutionize
freight corridor, railways stadiums, countries. the sector’s global positioning. India is
airports, projects in major ports, coal among the top 25 defence products
Outlook
mining projects, mineral mining blocks, exporting nations, according to the
The Indian economy is expected to be
national stadia, redevelopment of Stockholm International Peace Research
one of the fastest growing economies
colonies and hospitality assets). Institute 2020 report. The government
in the world. The country is projected
has set a target of INR 35,000 Crore export
In 2021, India was the largest recipient of to grow by 8% in FY 2022-23, buoyed
in aerospace and defence good services
global remittances. The country received by tailwinds of consistent agricultural
by 2024-25 to promote the export of
USD 87 Billion during 2021, with the US performance, flattening the COVID-19
defence items and make India part of
being the largest source (20%). India’s infection curve, increase in government
the global defence supply chain. The
foreign exchange reserves stood at an spending, favourable reforms and an
government aims to ensure transparency,
all-time high of USD 642.45 Billion as on efficient roll-out of the vaccine leading to
predictability and ease of doing business
September 3, 2021, crossing USD 600 a revival in economic activity.
by creating a strong ecosystem and
Billion in foreign exchange reserves for
Across the next three years, capital supportive government policies. Towards
the first time.
expenditure in core sectors - cement, this end, the government undertook
metal, oil refining and power - should initiatives to de-license, de-regulate,
 Data Patterns (India) Limited Annual Report 2021-22 24

promote export and liberalise foreign Government initiatives year’s allocation, registering among the
investment. India has exported to more § Defence Acquisition Council (DAC) sharpest increases in defence budget in
than 75 countries through collaborative boosted the ‘Make in India’ initiative by recent years.
efforts and, due to this, defence exports according Acceptance of Necessity (AoN) § In the Union Budget FY 2022-23, the
enhanced by 334% in the last five years. to capital acquisition proposals worth Government has set aside 25% of the
The Indian government has set the INR 7,965 Crore (USD 1.07 Billion) for the defence R&D budget for start-ups and
defence production target at USD 25.00 modernisation and operational needs of private entities in the FY 2022-23.
Billion by 2025. In order to achieve armed forces.
§ Under the Union Budget FY 2022-23,
this target, modernization is required § The Government dedicated the seven 68% of the capital procurement budget
with a focus on cost, time and quality. defence public sector undertakings will be earmarked for the domestic
The Government is looking at all three (PSUs) created through the restructuring industry in 2022-23, an increase from 58%
aspects. The Indian aerospace & defence of the Ordnance Factory Board (OFB) to in the previous budget
segment is witnessing a strong push improve functional autonomy, efficiency,
from the government to promote SMEs, § The Government aims to set up an
growth potential and innovation in the
public sector undertakings and start-ups. independent nodal umbrella body
defence sector.
This is expected to benefit the domestic for meeting wide-ranging testing and
industry in the areas of design, innovation § The Government formulated the certification requirements.
and manufacturing, which is crucial for ‘Defence Production and Export
§ The capital budget allocation for
the country’s economic growth. As per Promotion Policy 2020’ to offer impetus
DRDO has increased by 5.3% from INR
data released by the Department for to self-reliance in defence manufacturing
11,375 Crore to INR 11,981.81 Crore
Promotion of Industry and Internal Trade under the ‘Atma Nirbhar Bharat’ scheme.
that is expected to catalyze the efforts
(DPIIT), foreign direct investment (FDI) § The government released Defence of indigenous research & development
equity inflow in the defence sector stood Acquisition Procedure 2020 (DAP) projects.
at USD 10.15 Million between April 2000 to transform India into a global
and June 2021. (Source: IBEF, Business § The Government has set up a provision
manufacturing hub with a focus on
Standard, Financial Express) for formation of Special Purpose Vehicle
indigenously designed, developed, and
(SPV) for the design, development &
Outlook manufactured weapon systems. The
production of major defence equipment
The Indian government is concentrating DAP 2020 offset guidelines were revised
that will ensure concurrent engineering
on innovative solutions to strengthen to incentivise the discharge of offsets
and production in faster timelines.
the country’s defence and security with a preference to Indian defence
through ‘Innovations for Defence equipment manufacturing companies to § The Department of Space has been
Excellence (iDEX)’, which has offered manufacture complete defence products allocated INR 13,700 Crore in Budget
a platform for start-ups to tie up with (over components or sub-parts). 2022, which is more than INR 1000
the defence establishments and create Crore compared to last year’s budgetary
§ The country’s Ministry of Defence
new technologies and products in announcements.
prepared a list of 209 items (Positive
the next five years. iDEX has gained Indigenisation List) for which there would § In the defence sector, the Strategic
attraction by the start-up community as be an embargo on the import beyond the Partnership (SP) model envisaged the
they look forward to participate in the timeline indicated against them, a wide establishment of long-term strategic
Defence India Start-up Challenge (DISC) opportunity to the sector to manufacture partnerships with defence manufacturing
programme. these items. companies in India through a transparent
The Defence Ministry aims to achieve and competitive process, wherein
§ The Government allowed 100%
70% self-reliance in weaponry by 2027, they would tie up with global Original
foreign direct investment in the Indian
offering ample opportunities for industry Equipment Manufacturers (OEMs) to seek
Defence sector, 79% under the automatic
players. The Government has introduced technology transfers to set up domestic
route and beyond that through the
Green Channel Status Policy (GCS) to manufacturing infrastructure and supply
government route
promote and encourage private sector chains. (Source: Economic Times, Financial
investments in defence production, § Under the Union Budget FY 2022-23, Express, IBEF, Business Standard)
encouraging the importance of private the defence sector was allocated INR 5.25
sector in defence production. (Source: Lakh Crore compared to INR 4.78 Lakh
IBEF) Crore, growing 10% over the previous
25 Corporate Overview Statutory Reports Financial Section

Big numbers

2.1
% of GDP spent on
15
% share in global arms
5.25
INR Trillion, Union
19
% increase in defence
defence (FY 2021-22) import Budget allocation to capital expenditure (FY
the defence sector (FY 2021-22)
2022-23)

Budgetary allocation for the Ministry of Defence

FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23
(Budgetary
estimate)
Defence services (Revenue) 2,23,240.83 2,24,351.76 2,38,717.09 2,39,743.71
Capital outlay 1,11,092 1,34,304.92 1,38,850.90 1,52,369.61
Defence pensions 1,17,810 1,28,065.88 1,16,878 1,19,696
Source: Ministry of Finance. All figures in INR Crore

Global rocket propulsion market size (USD Billion)

2020 4.9

2026 8.1

(Sources: Expert market research.com)

Military expenditure as a % of GDP

Year 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011
India 2.1% 2.4% 2.38% 2.51% 2.51% 2.41% 2.5% 2.47% 2.54% 2.65%
USA 3.5% 3.2% 3.1% 3.1% 3.2% 3.2% 3.4% 3.8% 4.2% 4.5%
Russia 4.1% 3.87% 3.72% 4.23% 5.45% 4.86% 4.10% 3.84% 3.68% 3.42%
World 2.08% 2.20% 2.17% 2.19% 2.23% 2.26% 2.26% 2.31% 2.38% 2.42%
Sources: (Times of India, Macro trends, Statista, World Bank, Aviation pros.com, Orfonline. org)

Growth drivers § India has set up dedicated defence and start-ups to deliver equipment and
§ India is comprehensively reversing the corridors in various States to utilize components to the army
trend of over-reliance on imports through and enhance the existing defence
§ Launch of draft SPACE COM policy and
indigenous capacity building. The country manufacturing eco-system in these
the government’s permission related
has outlined a detailed policy roadmap, regions. These corridors will become the
to the entry of the private sector in the
supported by concentrated ground growth drivers of the defence industrial
development of satellites and launch
actions to boost domestic production in base in the country
vehicles
the defence and aerospace sector. This § The Ministry of Defence removed
§ India expects to enhance its share in
indigenous capacity building is expected limitations on procurement norms,
the global space economy from less than
to enhance the growth of the Indian making it easier for Indian companies
2% at the moment to 10%.
defence sector
 Data Patterns (India) Limited Annual Report 2021-22 26

§ ISRO’s announcement to provide ~70% Indian defence electronics of most platforms used by the Indian
mandate of all upcoming space missions market review Armed Forces. Accordingly, platform
to private players over five years The Indian defence electronics market recapitalisation programmes across all
size was pegged at $1.88 Billion in 2021 three forces such as new combat aircraft
§ The global space industry attracted
and is anticipated to reach $ 6.99 Billion acquisition, submarine building and T-72
investments of $ 17 Billion in 2021
by 2030. The market grew at a CAGR of replacement will be key contributors to
growing from $9 Billion in 2020. Space
4.5% between 2016 and 2020. future market valuation of this product
investment accounted for 3% of total
segment. Currently, over 60% of the
global venture capital flows. The defence electronics segment will electronic components used in Indian
§ The Indian space sector could ride see extensive indigenization over the defence equipment are supplied by
the global space industry, projected to next decade. From both manufacturing foreign OEM. However, with the recent
generate $1 Trillion revenues by 2040 and quality stand points, Indian defence increased impetus on indigenization,
electronics are becoming increasingly future contracts will see a greater
§ Increased use of space launch vehicles
embedded into global defence supply proportion of defence electronics being
for satellites and testing applications,
chains. Currently, electronic components sourced locally. The cumulative market
inception of space tourism and
made in India are used in Israel, USA opportunity for the defence electronics
development of satellite internet system
and European combat aircraft. Defence segment is expected to be approximately
electronics make up 25-35% the cost $ 39 Billion.

8000
1880.51 1880.51 2577.19 3443.15 3460.15 4333.64 5233.47 4525.81 4705.35 6829.99
7000
6000
5000
in $ Million

4000
3000
2000
1000
0
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Defence Electronics (Source: Frost & Sullivan)

Company overview SWOT Analysis § Certified manufacturing infrastructure

Data Patterns (‘Data Patterns’ or the fulfilling international benchmarks
Strengths
‘Company) is a market leader in Weakness
§ Robust domain capability in Radars,
indigenously developed electronic
Electronic Warfare, Communication § The order inflows are skewed in nature.
systems in the Defence and Aerospace
systems, Avionics & Satellite Systems
domain of India. The Company’s major § Extensive gestation development
strength is its 30-year legacy of creating § All product development contracts
high reliability products through its broad competencies under one roof
manufacturing capabilities in this domain. Opportunities
§ 100% in-house design and
Data Patterns has fabricated various § India spends over INR 1 Trillion annually
manufacturing capability
electronic systems for a large pedigree on defence capex, increasing gradually
of customers at the back of its captive § Scalable business; potential to build
§ There is a growing participation from
manufacturing facility. The company complete systems
the private sector in the defence supply
is recognized by its customers for its § Vast number of products designed in chain on account of government policies
potential to deliver complex programs in India for all platforms (land, air and sea) like Defence offset programme, Make in
short turnaround times.
27 Corporate Overview Statutory Reports Financial Section

India initiatives and policy changes in the Crore of additional capital through private financial year under review. Depreciation
Defence Procurement Procedure placement (INR 60 Crore) and through on tangible assets increased by 17% from
IPO (INR 240 Crore). The increase is also INR 5.49 Crore in FY 2020-21 to INR 6.41
§ Strong export potential
due to a reduction in debt. Return on Crore in FY 2021-22 owing to an increase
Threats capital employed, a measurement of in fixed assets during the year.
returns derived from every rupee invested
§ Competition from smaller suppliers Working capital management
in the business, decreased by 17 basis
with less knowledge of the concerns Current assets of the Company increased
points from 41% in FY 2020-21 to 24% in
involved by 99% from INR 261 Crore as on March
FY 2021-22 due to an increase in capital
§ Delays in the commercialisation of employed on the basis of equity infusion 31, 2021 to INR 520 Crore as on March
product development on account of through private placement and IPO. 31, 2022, mainly due to the deposits
tedious and time-consuming approval created out of the IPO proceeds pending
The net worth of the Company increased utilisation and owing to the growing scale
process
by 176% from INR 208 Crore as on March of business. The current and quick ratios
§ Global competition 31, 2021 to INR 575 Crore as on March of the Company stood at 5.02 and 3.87,
§ Possible delays in key government 31, 2022 owing to private placement, respectively at the close of FY 2021-22
programmes in space and defence IPO and increase in retained earnings. compared to 3.64 and 2.62, respectively at
sectors on account of fiscal constraints The Company’s equity share capital the close of FY 2020-21.
comprised 5,18,86,650 equity shares
Financial overview of INR 2 each as on March 31, 2022 as Inventories including raw materials,
against 16,99,790 equity shares of INR 10 work-in-progress and finished goods
Analysis of the profit and loss
each as on March 31, 2021. The change among others increased by 62% from
statement
was due to the split of shares of INR 10 INR 74 Crore as on March 31, 2021 to INR
Revenues: Revenues from operations 120 Crore as on March 31, 2022, owing
each to shares of INR 2 each; allotment of
reported a 39% growth from INR 224 to a growing scale of business and also
1:4 bonus in August 2021 and 10:1 bonus
Crore in FY 2020-21 to INR 311 Crore in FY due to the advance procurement of
in September 2021 and shares allotted
2021-22. Other income of the Company material to mitigate the semi-conductor
through private placement and during
reported a 52% growth and accounted for shortage. Accordingly, the inventory cycle
the IPO.
a 1.26% share of the Company’s revenues, days increased from 397 days of turnover
reflecting the Company’s dependence on Long-term debt of the Company equivalent in FY 2020-21 to 410 days of
its core business operations. decreased by 93% to INR 0.73 Crore as on turnover equivalent in FY 2021-22.
March 31, 2022 as against INR 9.77 Crore
Expenses: Total expenses increased by Growing business volumes resulted in an
as on March 31, 2021 mainly due to a
23% from INR 152 Crore in FY 2020- increase of 27% in trade receivables from
repayment of long term borrowings out
21 to INR 187 Crore due to increased INR 156 Crore as on March 31, 2021 to
of the IPO proceeds.
scale of operations. Raw material costs, INR 198 Crore as on March 31, 2022. Since
accounting for a 28% share of the The finance costs of the Company 100% of the receivables are considered
Company’s revenues increased by 22% decreased by 24% from INR 14.5 Crore in good and realizable, no provision has
from INR 70 Crore in FY 2020-21 to INR 86 FY 2020-21 to INR 11 Crore in FY 2021-22 been made. Debtor turnover cycle came
Crore in FY 2021-22 owing to an increase due to a better realisation of receivables down to 208 days of turnover equivalent
in the operational scale. Employee and consequently reduced use of bank in FY 2021-22 from 221 days in FY 2020-
expenses, accounting for a 20% share of facilities. The Company’s net debt / equity 21.
the Company’s revenues, increased by ratio stood at a comfortable 0.01 at the
29% from INR 48 Crore in FY 2020-21 to close of FY 2021-22 (0.16 at the close of Cash and bank balances of the Company
INR 62 Crore in FY 2021-22. FY 2020-21). Debt-equity ratio has always increased from INR 9 Crore as on March
been less than 1.0 for the Company. 31, 2021 to INR 177 Crore as on March 31,
Analysis of the Balance Sheet 2022 mainly due to IPO proceeds.
Sources of funds Applications of funds
Loans and advances made by the
The capital employed by the Company Fixed assets (gross) of the Company Company increased by 8% from INR 23
increased 164% from INR 217.70 Crore as increased by 95% from INR 33 Crore as Crore as on March 31, 2021 to INR 25
on March 31, 2021 to INR 575.24 Crore on March 31, 2021 to INR 65 Crore as on Crore on account of increased prepaid
as on March 31, 2022 owing to fresh March 31, 2022 due to the additional expenses and advances payable to
equity infusion through the initial public plant, machinery and computers suppliers.
offering. The Company raised INR 300 purchased and capitalised during the
 Data Patterns (India) Limited Annual Report 2021-22 28

Margins
The EBITDA margin of the Company improved from 42% in FY 2020-21 to 47%, resulting in a similar 500 bps increase in the net profit
margin. Increase in EBITDA margin was due to the increased scale of operations and better gross margin in a few projects executed
during FY 2021-22.

Key ratios
Particulars FY 2020-21 FY 2021-22
EBITDA/turnover (%) 42 47
EBITDA/net interest ratio 6.52 13.19
Return on equity (%) 26.72 16.36
Book value per share (INR 1223.26 110.72
Earnings per share (INR) 11.90 19.48
Debtors turnover (days) 221 208
Inventory turnover (days) 397 410
Interest coverage ratio (x) 6.14 12.59
Current ratio (x) 3.64 5.02
Debt-equity ratio (x) 0.16 0.01
Operating profit margin (%) 40 45
Net profit margin (%) 25 30

Internal control systems and their adequacy Cautionary statement

The internal control and risk management system is This statement made in this section describes the Company’s
organized and employed accordingly with the principles objectives, projections, expectation and estimations which may
and criteria set up in the corporate governance code be ‘forward looking statements’ within the meaning of applicable
of the organisation. It is an inherent part of the general securities laws and regulations. Forward– looking statements are
organisational structure of the Company and Group and based on certain assumptions and expectations of future events. The
involves various persons to coordinate among each other Company cannot guarantee that these assumptions and expectations
to complete their respective duties. The Board of Directors are accurate or will be realised by the Company. Actual result could
provides various guidelines to directors and management, differ materially from those expressed in the statement or implied
monitoring and support committees. The control and due to the influence of external factors which are beyond the control
risk committee and the head of the audit department are of the Company. The Company assumes no responsibility to publicly
supervised by the board appointed statutory auditors. amend, modify or revise any forward looking statements on the basis
of any subsequent development, information or events.
29 Corporate Overview Statutory Reports Financial Section

Directors’ Report
Dear Shareholders,

Your Directors present herewith the 24th Annual Report along with the Audited Financial Statements of your Company for the Financial
Year ended 31st March, 2022.

1. FINANCIAL PERFORMANCE:
The audited financial statements of the Company as on 31st March, 2022 are prepared in accordance with the relevant applicable IND AS
and Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“Listing Regulations”) and provisions
of the Companies Act, 2013 (“Act”). The summarized financial highlights are depicted below:

Particulars For the year ended For the year ended

31st March 2022 31st March 2021
I. Revenue from Operations 310.85 223.95
II. Other Income 3.96 2.60
III. Total Income 314.81 226.55
IV. Expenses:
a) Cost of materials consumed 91.59 62.97
b) Changes in inventories of finished goods, work in progress and stock-in-trade (5.52) 7.44
c) Employee benefits expenses 62.35 48.42
d) Finance cost 10.99 14.50
e) Depreciation / Amortization 6.63 5.57
f) Other expenses 21.39 13.13
Total Expenses 187.43 152.03
V. Profit before tax 127.38 74.52
VI. Tax expense:
a) Income Tax 32.93 18.91
b) Tax pertaining to earlier years 1.36 -
c) Deferred Tax (0.88) 0.05
VII. Profit(Loss)for the period 93.97 55.56
VIII. Other Comprehensive Income
Re-measurement Gain / (Loss) on Defined Benefit Obligations (1.54) (1.28)
Income tax on above 0.39 0.32
Other Comprehensive Income/(Loss) for the year (1.15) (0.96)
IX. Total Comprehensive Income for the year 92.82 54.60
X. Earnings per equity share of Rs 2 each fully paid
Basic and diluted (In INR) 19.48 11.90

2. PERFORMANCE HIGHLIGHTS: growth during the year. Radar and Electronic warfare products
The key aspects of your Company’s performance during the contributed to Rs. 152 Cr revenue. Your Company successfully
financial year 2021-22 are as follows: completed the Factory Acceptance Test of Data Patterns
developed first Precision Approach Radar in FY 2021-22.
a) Revenue:
b) Operating and administrative expenses
Total revenue of your Company for FY 2021-22 stood at INR 314.81
Crores as against INR 226.55 Crores for FY 2020-21 marking an Operating and administrative expenses (comprising of cost of
increase of 38.9%. Your Company achieved this revenue growth material consumed, employee cost and other administrative
despite the supply chain challenges due to Covid pandemic. expenses) during FY 2021-22 were INR 169.81 Crores, an increase
of 28.7% over the previous year figure of INR 131.96 Crores. The
This revenue growth was contributed by increase in Order inflow percentage of Operating and administrative expenses to total
of both development and production orders and timely execution revenue recorded a decrease of 4.3%, from 58.2% in FY 2020-21
of the same. Revenue from all product categories showed a good to 53.9% in FY 2021-22 contributing to better Operating Margin.
 Data Patterns (India) Limited Annual Report 2021-22 30

c) Depreciation and amortization expenses machinery. Overall project cost is estimated at around Rs. 70
Depreciation and amortization expenses during FY 2021-22 to Rs. 80 Cr. The building construction was started in June
were INR 6.63 Crores, an increase of 19% over the previous years 2021 and is expected to be completed by Q3 of the current
figure of INR 5.57 Crores, mainly on account of addition to Plant & financial year (2022-23). Required plant and equipment are
machinery and computers. being bought on need basis and the project is expected to
be completed before end of FY 2022-23.
d) Finance costs
c. Your Company is now a net zero debt company.
Finance costs reduced by 24.2% in FY 2021-22 (INR 10.99 Crores
as against Rs. 14.50 Crores in FY 2020-21), mainly due to reduced d. 100th unit of Radar Processor was supplied to a foreign
borrowing on account of better working capital management. All customer in March 2022.
the loans were repaid out of IPO proceeds and your Company is
net zero debt Company now. 7. FIXED DEPOSITS:
During the year under review, your Company has not accepted
3. DIVIDEND: any fixed deposits within the meaning of Section 73 of the
The Board of Directors of your Company, after considering Companies Act, 2013, read with rules made there under.
the relevant circumstances holistically, has recommended a
dividend of INR 3.50 per equity share of Rs. 2 each fully paid as 8. SUBSIDIARY COMPANIES AND ITS FINANCIAL
final dividend for the year under review. The dividend, if approved PERFORMANCE:
by the members in the ensuring Annual General Meeting, will be Your Company has no subsidiaries.
paid as per the provisions of the Companies Act 2013.
9. FINANCIAL STATEMENTS
4. COVID-19 PANDEMIC: In accordance with the Ministry of Corporate Affairs (“MCA”)
The global economy was badly impacted by second wave of circular dated January 13, 2021 read with circulars dated April 08,
Covid 19 in the first quarter of the financial year 2021-22. While 2020, April 13, 2020 and May 5, 2020, the Annual Report 2020-
the Delta variant was reasonably settling down in the second 21 containing complete Balance Sheet, Statement of Profit &
quarter, emergence of Omicron variant in the third quarter threw Loss, other statements and notes thereto, including financial
sudden restrictions on mobility and slow down in the economic statements, Directors’ Report is being sent only via email to all
activities. The year 2021-22 was characterized by never before shareholders who have provided their email address(es).
high inflation. Semi conductor shortage and availability of
The Annual Report along with the Financial Statements are also
transports for bringing the material remained a big challenge.
available on the website of the Company and can be accessed at
Your Company managed the situation well and achieved the
http://www. datapatternsindia.com.
targets in FY 2021-22.
10. DIRECTORS AND KEY MANAGERIAL PERSONNEL:
5. MATERIAL CHANGES AND COMMITMENTS:
Mr. Mathew Cyriac was appointed as a Nominee Director
There are no material changes, which have occurred between the
representing M/S. Florintree Capital Partners LLP in June 2021.
end of financial year of the company and the date of this report.
Mr. S. Ramakrishnan, Mr. Prasad R. Menon, Ms. Sabitha Rao and
6. KEY DEVELOPMENTS: Dr. VVR Sastry were appointed as independent directors of the
a. Year 2021-22 was a historical year for your Company. Equity Company on September 10, 2021 to hold office for a period of
shares of your Company got listed in leading Indian Stock 5 years.
Exchanges on 24th December, 2021 through an Initial Public Mr. Vijay Ananth K, Chief Operating Officer of the Company was
Offer. Entire process of IPO was successfully completed in less inducted into the Board as Additional Director on 08th February,
than 5 months. Total issue size was Rs. 648.22 Cr. Company 2022 and his term of appointment was regularized as Executive,
raised Rs. 300 Cr from out of Private Placement of shares (Rs. Whole-time Director in the Extra-ordinary general meeting held
60 Cr) and IPO (Rs. 240 Cr). Rs. 348.22 Cr was offer for sale on 06th May, 2022.
by the existing Shareholders. The funds raised through the
process are earmarked for specific purposes as declared in Ms. Manvi Bhasin was appointed as Company Secretary cum
the offer documents. Compliance Officer in July 2021 and Mr. V Venkata Subramanian,
GM-Finance of the Company was appointed as Chief Financial
The subscription was open between December 14, 2021 and Officer of the Company in September, 2021.
December 16, 2021. The IPO was subscribed 119.6 times. The
issue was priced at Rs. 585 per equity share of Rs. 2 each. Directors retiring by rotation
Your Directors were overwhelmed with the kind of market Pursuant to the requirements of the Companies Act, 2013, Mr. S.
response to the Company’s IPO and would like to place on Rangarajan (DIN: 00643456) and Ms. Rekha Murthy Rangarajan
record their sincere thanks to all the subscribers for reposing (DIN: 00647472) retires by rotation at the ensuing Annual General
trust and confidence in Data Patterns. Meeting and being eligible, offer themselves for reappointment.
b. Your Company decided to augment its production and The Board recommends the appointment/reappointment of
testing infrastructure by adding another 1 lac sq.ft of building above Directors for your approval.
and the required manufacturing and testing equipment &
31 Corporate Overview Statutory Reports Financial Section

Brief details of Directors proposed to be appointed/re-appointed For the financial year 2021-22 the Independent Directors held
as required under Regulation 36 of the SEBI Listing Regulations a meeting on August 01, 2022 without the attendance of Non-
are provided as part of the Notice of Annual General Meeting. Independent Directors and members of the Management.
The Independent Directors reviewed the performance of Non-
Independent Directors and their Meeting Independent Directors and the Board as a whole; taking into
Your Company has appointed 4 Independent Directors effective account the views of Executive Directors and Non-Executive
from September 10, 2021. Your Company has received annual Directors, assessed the quality, quantity and timeliness of flow
declarations from all the Independent Directors of the Company of information between the Company Management and the
confirming that they meet with the criteria of Independence Board that is necessary for the Board to effectively and reasonably
provided in Section 149(6) of the Companies Act, 2013 and perform their duties.
Regulations 16(1)(b) & 25 of the SEBI (Listing Obligations and
During the year under review the Non- Executive Directors
Disclosure Requirements) Regulations, 2015 and there has been
received the sitting fees from the Company for attending the
no change in the circumstances, which may affect their status as
Board and Committee Meetings. The amount received by the
Independent Director during the year.
Non- Executive Directors is as follows:

S. No. Name of the Director Category of Director Sitting fees received during
F.Y. 2021-22 (INR)
1. Mr. Mathew Cyriac Nominee Director 6,05,000
2. Mr. S. Ramakrishnan Independent Director 6,05,000
3. Mr. Prasad R. Menon Independent Director 6,05,000
4. Ms. Sabitha Rao Independent Director 6,08,000
5. Dr. VVR Sastry Independent Director 6,05,000

11. DIRECTORS’ RESPONSIBILITY STATEMENT: 12. BOARD EVALUATION:

Pursuant to clause (c) of sub-section (3) read with sub-section (5) As the Independent Directors were appointed in September 2021
of Section 134 of the Companies Act, 2013, the Board of Directors, and since one year has not passed since their appointment, the
to the best of their knowledge and ability, confirm that: Company is yet to evaluate the performance of the Independent
Directors.
a) in the preparation of the annual financial statement, the
applicable accounting standards have been followed along
13. POLICY ON DIRECTORS’ APPOINTMENT AND
with proper explanation relating to material departures, if
REMUNERATION:
any;
The Company’s policy on directors’ appointment and
b) such accounting policies have been selected and applied remuneration and other matters provided in Section 178(3)
consistently and judgement and estimates have been made of the Act is available on the website of the Company at www.
that are reasonable and prudent so as to give a true and fair datapatternsindia.com.
view of the state of affairs of the Company as at 31st March,
2022 and of the loss of the Company for the year ended on 14. INTERNAL FINANCIAL CONTROL (IFC) SYSTEM
that date; AND THEIR ADEQUACY:
c) proper and sufficient care has been taken for the maintenance According to Companies Act, the term Internal Financial
of adequate accounting records in accordance with the Control (IFC) means the policies and procedures adopted by
provisions of the Companies Act, 2013 for safeguarding the the Companies for ensuring the orderly and efficient conduct
assets of the Company and for preventing and detecting of its business including adherence to Company’s policies
fraud and other irregularities; safeguarding of its assets, prevention and detection of errors and
frauds, completeness and accuracy of its accounting records and
d) the annual financial statement have been prepared on a
timely preparation of reliable financial statements.
going concern basis;
The Directors are responsible for laying down internal financial
e) proper internal financial controls were in place and that
controls to be followed by the company and that such internal
the financial controls were adequate and were operating
financial controls are adequate and were operating effectively. As
effectively;
per Section 134(5) (e) of the Companies Act, 2013, the Director’s
f) proper system to ensure compliance with the provisions of Responsibility Statement shall state the same.
all applicable laws including the compliance of applicable
Your Company has put in place the required internal control
Secretarial Standards were in place and were adequate and
systems and processes commensurate with its size and scale of
operating effectively.
operations. During the year under review your Company carried
out a separate audit on IFC, in addition to the internal audit.
 Data Patterns (India) Limited Annual Report 2021-22 32

The IFC auditors independently evaluated the adequacy and Cost Auditors:
adherence of IFC and certified the same. Your Company has appointed CMA G. Sundaresan for Cost
The Audit Committee of the Board of Directors regularly reviews Audit to conduct audit of cost records of the Company for the
execution of Audit Plan, the adequacy and effectiveness of Internal year ended 31st March, 2022. The Company has maintained the
audit systems, and monitors implementation of internal audit cost accounts and records in accordance with Section 148 of the
recommendations including those relating to strengthening of Companies Act, 2013 and Rule 8 of the Companies (Accounts)
company’s risk management policies and systems. Rules, 2014.

Secretarial Auditor:
15. RISK MANAGEMENT:
Pursuant to the provisions of Section 204 of the Companies
Your Company is now within top 1,000 listed entities based on
Act, 2013 and the rules made there under, CS A Mohan Kumar,
the market capitalization as on 31st March 2022.
Practising Company Secretary, had been appointed to undertake
Company’s Risk Management Framework is designed to help the Secretarial Audit of the Company. The Secretarial Audit
the organization, which meet its objective through alignment Report for financial year 2021-22 is forming part of this report as
of operating controls to the mission and vision of the Group. Annexure – A.
The Board of Directors of the Company has formed a risk
management committee to frame, implement and monitor 19. AWARDS, CERTIFICATIONS AND
the risk management plan for the Company. The committee is ACCREDITATIONS:
responsible for formulating relevant Risk Management Policy for Your Company continues to be certified under AS9100 and ISMS
identifying risks, assessment of its impact in Company’s business, having successfully completed the surveillance audits.
required action plan for mitigating the risks and ensuring its
effectiveness. The audit committee has additional oversight in the 20. CORPORATE GOVERNANCE:
area of financial risks and controls.
Your Company has complied with the requirements of
The Risk Management Framework, institutionalized, strives to Securities and Exchange Board of India (Listing Obligations and
ensure a holistic, mutually exclusive and collectively exhaustive Disclosure Requirements) Regulations, 2015 regarding Corporate
allocation of risks by identifying risks relating to key areas such Governance. A report on the Corporate Governance practices,
as operational, regulatory, business and commercial, financial, a Certificate from practicing Company Secretary regarding
people, cyber security, etc. Using this framework we aim to compliance of mandatory requirements thereof are given as an
achieve key business objectives, both in the long term and short annexure to this report. In compliance with Corporate Governance
term, while maintaining a competitive advantage. requirements as per the Listing Regulations, your Company has
formulated and implemented a Code of Business Conduct and
16. BUSINESS RESPONSIBILITY REPORT: Ethics for all Board members and senior management personnel
The Business Responsibility Report for the year ended 31st of the Company, who have affirmed the compliance thereto.
March, 2022 as stipulated under Regulation 34 of the SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015 is 21. MANAGEMENT DISCUSSION AND ANALYSIS:
posted at Company’s website www.datapatterns.co.in A detailed report on the Management discussion and Analysis is
provided as a separate section in the Annual Report
17. RELATED PARTY TRANSACTIONS:
All the related party transactions entered into during the financial 22. SUSTAINABILITY & CORPORATE SOCIAL
year were on an arm’s length basis and were in the ordinary RESPONSIBILITY (S & CSR):
course of business. None of the transactions with related parties The Company has constituted Corporate Social Responsibility
fall under the scope of Section 188(1) of the Companies Act, 2013 (“CSR”) Committee as per Section 135 of Companies Act 2013 and
(the “Act”). Accordingly, the disclosure of related party transactions also formulated its CSR Policy in alignment with Schedule VII of
as required under Section 134(3)(h) of the Act in the prescribed the Companies Act, 2013. The said CSR Policy is also available on
Form AOC-2 is not applicable to the Company and hence does the website of the Company i.e. https://www.datapatternsindia.
not form part of this report. com/.

18. AUDITORS: Our CSR Philosophy:

Statutory Auditors: Community Engagement and Development:

R.G.N. Price & Co, (FRN No:002785S) Chartered Accountant firm, We approach community care with the same zeal and efficiency
was re-appointed as the auditors of the company in the 21st as we approach our business. We make strategic long-term
Annual General Meeting to hold the office for the period of 5 investments which yield life-long positive change to the
consecutive years i.e. from the Financial Year 2019-20 to 2022-23 communities around us. We have a committed implementation
till the conclusion of the 25th Annual General Meeting. team to carefully choose and craft initiatives in alignment with
current and future needs of the nation.
33 Corporate Overview Statutory Reports Financial Section

We believe in positive relationships that are built with constructive ➢ Company ensures that the manufacturing operations are
engagement which enhances the economic, social and cultural conducted in the manner whereby optimum utilisation and
wellbeing of individuals and regions connected to our activities. maximum possible savings of energy is achieved.
We continuously engage in dialogues, consultation, coordination
➢ No Specific investment has been made in reduction in
and cooperation with community members to improve our
energy consumption. However, the Company is planning to
sustainability performance and reduce business risks.
install solar power system in the financial year 2022-23.

23. DISCLOSURES: ➢ As the impact of measures taken for conservation and

optimum utilisation of energy are not quantitative, its impact on
A. NUMBER OF BOARD MEETINGS:
cost cannot be stated accurately.
During the Financial Year 2021-22, the Board of Directors have met
for 13 times i.e., on 05.04.2021, 31.05.2021, 04.06.2021, 21.06.2021, ➢ Foreign Exchange Earnings- 37.75 Crores
16.07.2021, 11.08.2021, 12.08.2021, 02.09.2021, 03.09.2021, ➢ Foreign Exchange Outgo – 98.65 Crores
15.09.2021, 29.10.2021, 16.11.2021 and 08.02.2022.
H. PARTICULARS OF EMPLOYEES
B. COMMITTEES OF BOARD:
The information required under Section 197 of the Companies
Details of various committees constituted by the Board of Act, 2013 read with rule 5(1) of the Companies (Appointment and
Directors, as per the provisions of the SEBI (Listing Obligations and Remuneration of Managerial Personnel) Rules, 2014 are provided
Disclosure Requirements) Regulations, 2015 and the Companies in separate annexure forming part of this Report as Annexure – B.
Act, 2013, are given in the Secretarial Auditor Report and forms The statement containing particulars of employees as required
part of this report. under Section 197 of the Companies Act, 2013 read with rule 5(2)
of the Companies (Appointment and Remuneration of Managerial
C. ANNUAL RETURN:
Personnel) Rules, 2014, will be provided upon request. In terms of
The Annual Return of the Company as on 31st March, Section 136 of the Companies Act, 2013, the Report and Accounts
2021 is available on the website of the Company at www. are being sent to the Members and others entitled thereto,
datapatternsindia.com excluding the information on employees’ particulars which is
available for inspection by the members at the Registered Office
D. VIGIL MECHANISM / WHISTLE BLOWER POLICY:
of the Company during business hours on working days of the
Pursuant to the provisions of Section 177 of the Companies Company. If any member is interested in obtaining a copy thereof,
Act, 2013 read with Rule 7(1) of Companies (Meeting of Board such Member may write to the Company Secretary in this regard.
and its Powers) Rules, 2014, the Company has established the
Vigil Mechanism for the genuine concerns and grievances of its I. PREVENTION OF SEXUAL HARASSMENT AT WORKPLACE:
Directors and Employees and also nominated Mrs. Rekha Murthy As per the requirement of the provisions of the sexual harassment
Rangarajan, Whole Time Director of the Company, to play the of women at workplace (Prevention, Prohibition & Redressal)
role of Grievances Officer for the purpose of vigil mechanism to Act, 2013 read with rules made thereunder, our Company has
whom other Directors and Employees may report their concerns, constituted Internal Complaints Committees at various locations
in terms of Rule 7(3) of Companies (Meeting of Board and its as per requirement of the Act which are responsible for redressal
Powers) Rules, 2014. There were no complaints/grievances of complaints relating to sexual harassment against woman
received during the financial year under consideration. at workplace. During the year under review, there were no
The said mechanism is also placed at the website of the Company complaints pertaining to sexual harassment against women.
i.e., https://www.datapatternsindia.com/.
J. OTHER DISCLOSURES AND REPORTING
E. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS: Your Directors state that no disclosure or reporting is required
The Company has complied with the provisions of Section 186 in respect of the following items as there were no transactions
of Companies Act, 2013 in relation to Loans, Investments & pertaining to these items during the year under review:
Guarantees given by the Company during the Financial Year 1. Details relating to deposits covered under Chapter V of the
under review. Act
F. SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE 2. Issue of equity shares with differential rights as to dividend,
REGULATORS OR COURTS OR TRIBUNALS IMPACTING THE voting or otherwise.
GOING CONCERN STATUS OF THE COMPANY:
3. Issue of shares (including sweat equity shares) to employees
There are no significant and material orders passed by the of the Company under ESOP or any other scheme.
Regulators or Courts or Tribunals which would impact the going
concern status and the Company’s future operations. 4. Neither the Managing Director nor the Whole-time
Director of the Company has received any remuneration or
G. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, commission from any of its subsidiaries.
FOREIGN EXCHANGE EARNINGS AND OUTGO:
K. POLICIES
The information on conservation of energy, technology
absorption and foreign exchange earnings and outgo stipulated During the year under review, the Board of Directors of the
under Section 134(3)(m) of the Companies Act, 2013 read with Company has formulated/reviewed changes in Sustainability
Rule 8 of and Corporate Social Responsibility policy; Nomination and
 Data Patterns (India) Limited Annual Report 2021-22 34

Remuneration Policy of Directors, Key Managerial Personnel of Government of India and other State Governments, Banks,
and Other Employees; Related Party Transaction Policy; Vigil financial institutions, Company’s Auditors, and all stakeholders.
Mechanism / Whistle Blower Policy; Code of Conduct for Board The Directors would also like to express great appreciation for the
of Directors and Senior Management of the Company; and Code commitment and contribution of its employees.
of internal procedures and conduct for regulating, monitoring
Your Directors wish to place on record their sincere appreciation
and reporting of Trading by Insiders to comply with the recent
for the dedicated efforts and consistent contribution made by the
amendments in the Companies Act, 2013 and SEBI Regulations.
employees at all levels and all others, to ensure that the Company
Accordingly, the updated policies are uploaded on website of the
continues to grow and excel, despite the disturbances caused due
Company at www.datapatternsindia.com.
to second and third wave of Covid pandemic.
L. INSURANCE Your Directors also wants to place their special thanks to the entire
Your Company has taken appropriate insurance for all assets as per team of professionals like, Merchant Bankers, Auditors, Lawyers,
general industry practice. Company Secretaries, Stock Exchanges, Regulators and all other
professionals involved in the process of listing of Company’s shares.
25. ACKNOWLEDGEMENT: The Directors also wish to place their thanks to all the investors for
Your Directors place on record their appreciation for assistance and posing confidence in the Company and investing in its shares.
co-operation received from various Ministries and Department

For Data Patterns (India) Limited

Date: 02.08.2022 Srinivasagopalan Rangarajan Rekha Murthy Rangarajan
Place: Chennai Chairman and Managing Director Whole-time Director
DIN: 00643456 DIN: 00647472
35 Corporate Overview Statutory Reports Financial Section

Annexure - A to the Directors’ Report

Form No. MR-3
SECRETARIAL AUDIT REPORT
FOR THE FINANCIAL YEAR ENDED MARCH 31, 2022
[Pursuant to section 204 (1) of the Companies Act, 2013 and Rule No.9 of the Companies
(Appointment and Remuneration Personnel) Rules, 2014] and Regulation 24A of SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015

To,
The Members,
M/s. Data Patterns (India) Limited.

I have conducted the Secretarial Audit of the Compliances portal, the form is not getting uploaded. As per the reply
with regards to applicable statutory provisions and the given by the Company’s management, the Company has
adherence to good corporate practices followed by M/s. Data taken immediate actions and have filed the complaint vide
Patterns (India) Limited [Formerly known as Indus Teqsite ticket no. SR2365225 with RoC Chennai, as well as MCA
Private Limited] (hereinafter called “the Company”) bearing e-governance.
Corporate Identification Number L72200TN1998PLC061236.
4. The Board of Directors of the Company has approved
Secretarial Audit was conducted in a manner that provided us a
proposed final dividend for the FY 2020-2021; the Company
reasonable basis for evaluating the corporate conducts/statutory
has complied the provisions except transferring the amount
compliances and expressing my opinion thereon.
of dividend to separate bank account for payment of
Based on my verification of M/s. Data Patterns (India) Limited’s dividend with Shareholders.
books, papers, minute books, forms and returns filed and other
5. The appointment of Mr. Vijay Ananth as Additional Director
records maintained by the Company and also the information
of the Company has not been communicated to the Stock
provided by the Company, its officers, agents and authorized
Exchanges immediately after the Board meeting in which
representatives during the conduct of secretarial audit, I hereby
he was appointed. However, this was intimated to the
report that in my opinion, the Company has, during the audit
Exchanges vide the Corporate Governance Report filed by
period covering the financial year ended on March 31, 2022,
the Company for quarter ended 31st March, 2022.
complied with the statutory provisions listed hereunder and also
that the Company has proper Board-processes and compliance- I have examined the books, papers, minute books, forms and
mechanism in place to the extent, in the manner and subject to returns filed and other records maintained by the Company for
the reporting made hereinafter: the financial year ended on March 31, 2022 (“Review period”)
according to the provisions of:
1. The Company has appointed Independent Directors into
the Board of the Company w.e.f. 10th September, 2021. (i) The Companies Act, 2013 (the Act) and the rules made
As per the Company, for the period ending 31-3-2022, the thereunder;
Company has held an Independent Directors meeting on 1st
(ii) The Foreign Exchange Management Act, 1999 and the rules
August 2022. This meeting ought to have been conducted
and regulations made thereunder to the extent of Foreign
before 31-3-2022; however, since the company’s shares were
Direct Investment, Overseas Direct Investment and External
listed only in December 2021, the Company could not hold
Commercial Borrowings;
the Independent Directors meeting before 31-3-2022 and
has held it on 1st August 2022. The Company informs that (iii) The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and
it will hold an Independent Directors’ meeting for the year the rules made thereunder;
ending 31st March, 2023, separately on or before 31.3.2023. (iv) The Depositories Act, 1996 and the Regulations and Bye-
2. The Company has not filed Form MGT-14 for Board resolution laws framed thereunder;
approving the issue of shares through private placement (v) The following Regulations and Guidelines prescribed under
and for Board resolution approving to borrow from Axis the Securities and Exchange Board of India Act, 1992 (‘SEBI
Bank Limited till the date of signing this report. As per the Act’):-
Management, the Company is taking steps to file the same
at the earliest. a) The Securities and Exchange Board of India (Substantial
Acquisition of Shares and Takeovers) Regulations,
3. We note that the Company has been taking steps to file 2011-During the financial year under review, there were
CRA-4 with RoC but due to some technical issues on MCA no acquisition of shares and hence not applicable;
 Data Patterns (India) Limited Annual Report 2021-22 36

b) The Securities and Exchange Board of India (Prohibition I have also examined compliance with the applicable clauses of
of Insider Trading) Regulations, 2015; the following:
c) The Securities and Exchange Board of India (Issue of (i) Secretarial Standards issued by The Institute of Company
Capital and Disclosure Requirements) Regulations, Secretaries of India.
2018;
(ii) The Listing Agreements entered into by the Company with
d) The Securities and Exchange Board of India (Share Based BSE Limited (BSE) and National Stock Exchange of India
Employee Benefits and Sweat Equity) Regulations, 2021; Limited(NSE).
Not applicable to the Company during the financial
I further report that the applicable financial laws, such as Direct
year under review;
and Indirect Tax Laws, have not been reviewed under my audit as
e) The Securities and Exchange Board of India (Depositories the same falls under the review of statutory auditor and by other
and Participants) Regulations, 2021; designated professionals.
f) The Securities and Exchange Board of India (Issue and During the period under review, the Company has complied
Listing of Non-convertible Securities) Regulations, 2021 with the provisions of the Act, Rules, Regulations, Guidelines,
- During the financial year under review the Company Standards, etc. mentioned as above.
has not issued any Non-convertible securities and
I further report that:
hence not applicable;
a) The Board of Directors of the Company is duly constituted
g) The Securities and Exchange Board of India (Registrars
with proper balance of Executive Directors, Non-Executive
to an Issue and Share Transfer Agents) Regulations,
Directors and Independent Directors. The changes in the
1993regarding the Companies Act and dealing with
composition of the Board of Directors that took place during
client- The Company is not registered as transferor to
the period under review were carried out in compliance with
issue and Share Transfer Agent during the financial year
the provisions of the Act.
under review and hence not applicable;
b) Adequate Notice is given to all Directors to Schedule the
h) The Securities and Exchange Board of India (Delisting of
Board Meetings, agenda and detailed notes on agenda were
Equity Shares) Regulations, 2021- Not applicable during
sent in advance, and a system exists for seeking and obtaining
the financial year under review as the Company has not
further information and clarifications on the agenda items
delisted its equity shares from any stock exchange;
before the meeting and for meaningful participation at the
i) Securities and Exchange Board of India (Issue and Listing meeting.
of Non- Convertible and Redeemable Preference Shares)
c) All decisions were carried through where there were no
Regulations, 2013- Not applicable during the financial
dissenting members of the Board.
year under review as the Company has not issued any
Non- Convertible and Redeemable Preference Shares I further report that there are adequate systems and process in
from any stock exchange; the Company commensurate with the size and operations of the
Company to monitor and ensure compliance with applicable
a) The Securities and Exchange Board of India
Laws, rules, regulations and guidelines.
(Buyback of Securities) Regulations, 2018- The
Company has not bought back any of its securities I note that the Company has disclosed in their Corporate
during the financial year under review and hence Governance Report filed for the quarter ended 31.03.2022 that
not applicable; and there was no performance evaluation of Independent Directors.
As per the Company, the Independent Directors were appointed
b) The Securities and Exchange Board of India
on 10th September, 2021 and as they have not completed a
(Listing Obligations and Disclosure Requirements)
full year since their appointment as Independent Director, the
Regulations 2015.
Company has not carried out their performance evaluation.
c) The Laws as applicable specifically to the Company
I further report that during the audit period, the following major
are as under:
transactions were identified: -
(i) Factories Act, 1948 and The Tamil Nadu
1. On 05.04.2021, the promoters of the Company Mr. S.
Factories Rules, 1950;
Rangarajan and Ms. Rekha Murthy Rangarajan transferred
(ii) Information Technology Act, 2000 and 38,325 shares and 46,745 shares respectively to the
Information Technology Amendment Act, employees of the company.
2008;
2. The National Company Law Tribunal approved the
(iii) European Chemicals Agency and its amalgamation of the company (Formerly known as M/s.
regulations; Indus Teqsite Private Limited) with M/s Data Patterns(India)
Private Limited vide its order dated 13thApril 2021.
(iv) International Traffic in Arms Regulations (ITAR);
3. The board of directors in its meeting dated 31.05.2021,
(v) Restriction of Hazardous Substance Directive
approved the Shareholder’s Agreement and executed the
of the European Union.
37 Corporate Overview Statutory Reports Financial Section

same between the Company, Florintree Capital Partners LLP d.i. Ms. Sabitha Rao(DIN: 06908122)
and the promoters of the Company-Mr. S. Rangarajan and
d.ii. Mr. SastryVenkata Rama Vadlamani (DIN: 00027875)
Ms. Rekha Murthy Rangarajan.
d.iii. Mr. SowmyanRamakrishnan (DIN: 00005090)
4. On 04.06.2021, the board took note of the transfer of 3,33,887
shares made between the existing investor Oman India Joint d.iv. Mr. Prasad Raghava Menon (DIN: 00005078).
Investment Fund (OIJF) and Florintree Capital Partners LLP.
11. The company was converted from Private Limited into a
5. Mr. Mathew Cyriac was appointed as the Nominee Director Public Limited Company by the special resolution passed at
by the Board of Directors of the company with effect from the Extraordinary General Meeting held on 01stSeptember
04thJune 2021. 2021.

6. The members at the Extraordinary General Meeting held on 12. The issue of bonus shares to its shareholders in ratio 1:10 was
12thJuly 2021, approved the following: approved by the shareholders in the extraordinary general
meeting held on 03rdSeptember 2021 and the board
a. Amendment in the Memorandum and Article of
allotted the same.
Association with respect to Name clause. Pursuant
to NCLT’s order approving the amalgamation, the 13. The board of directors in their meeting held on 03rdSeptember
members approved change in the name of the 2021, appointed Mr. SrinivasagopalanRangarajan (DIN:
company from Indus Teqsite Private Limited to “Data 00643456), as Chairman and Managing Director of the
Patterns (India) Private Limited”. company.

b. Amendment in the Memorandum and Article 14. Mr. V Venkata Subramanian, the existing General Manager of
of Association with respect to re-classification of Finance was appointed as the Chief Financial Officer of the
authorised share capital and to increase in authorized company with effect from 03rdSeptember 2021.
share capital.
15. The shareholders accorded approval in the extraordinary
c. Amendment in the Memorandum of Association with general meeting held on 15thSeptember 2021, to raise
respect to Object Clause where the objects of Data capital through initial public offer.
Pattern are incorporated after the amalgamation.
16. The board of directors considered and approved the private
d. Amendment in the Articles of Association pursuant to placement of equity shares on 29thOctober 2021 and the
the execution of shareholder’s agreement. same was allotted by the board on 03.11.2021 and 24.11.2021
through circular resolution.
7. On 16.07.2021, the board took note of the transfer of 1,11,295
shares made between the investor Florintree Capital Partners 17. Subsequent to IPO, the Company got listed on stock
LLP to the employees and others of the Company. exchanges i.e; NSE and BSE w.e.f 24.12.2021.

8. The Board of Directors appointed Ms. Manvi Bhasin as 18. The board appointed Mr. Vijay Ananth (DIN: 09398784) as an
the Company Secretary of the company with effect from additional director on 08th February 2022.
19thJuly, 2021.
19. The Composition of the Board of Directors of the Company
9. The board approved to initiate initial public offering (IPO) of as on March 31, 2022 is given in “Annexure B”.
the Company, including by way of Offer for Sale on 16thJuly
20. During the Financial Year, the board constituted various
2021.
committees as per the Companies Act, 2013 and SEBI
10. The following were approved by the members in the Annual Regulations such as Audit Committee, Stakeholder
General Meeting held on 12thAugust 2021: Relationship Committee, Nomination and Remuneration
Committee and Corporate Social Responsibility Committee.
a. Approval for issue of Bonus Shares to the shareholders
The Composition of Committees of the Company as on
(first bonus issue) in the ratio of 4:1.
March 31, 2022 is given in “Annexure C”.
b. Sub-division of share capital into smaller amounts i.e.,
from the existing face value of Rs.10 each to face value
For Mohan Kumar & Associates
of Re. 2/- each
c. Declaration of dividend at the rate of 20% of Profit After Sd/-
Tax i.e. Rs.65.30 per equity share of Rs.10 each fully paid- A. Mohan Kumar
up of the Company Practicing Company Secretary
d. Appointment of the following Independent Director Membership Number: FCS 4347
for a term of five years with effect from 10thSeptember, Place: Chennai. Certificate of Practice Number: 19145
2021. Date:02.08.2022 UDIN: F004347D000718203

This Report is to be read with my testimony of even date which is annexed as Annexure A and forms an integral part of this report.
 Data Patterns (India) Limited Annual Report 2021-22 38

Annexure A

To,
The Members,
M/s. Data Patterns (India) Limited.

My report of even date is to be read along with this letter.

1. Maintenance of Secretarial record is the responsibility of the management of the Company. My responsibility is to express an
opinion on these secretarial records based on my audit.
2. I have followed the audit practices and process as were appropriate to obtain reasonable assurance about the correctness of the
contents of the Secretarial records. The verification was done on test basis to ensure that correct facts are reflected in Secretarial
records. I believe that the process and practices, I have followed provide a reasonable basis for my opinion.
3. I have not verified the correctness and appropriateness of financial records and Books of Accounts of the Company.
4. Wherever required, I have obtained the Management representation about the Compliance of laws, rules and regulations and
happening of events etc.
5. The Compliance of the provisions of corporate and other applicable laws, rules, regulations, standards is the responsibility of
management. My examination was limited to the verification of procedure on test basis.
6. The Secretarial Audit report is neither an assurance as to the future viability of the Company nor of the efficacy or effectiveness with
which the management has conducted the affairs of the Company.

For Mohan Kumar & Associates

Sd/-
A. Mohan Kumar
Practicing Company Secretary
Membership Number: FCS 4347
Place: Chennai. Certificate of Practice Number: 19145
Date:02.08.2022 UDIN: F004347D000718203

Annexure B

Composition of Board of Directors as on March 31, 2022:

S No. Name Designation Date of Appointment Date of
at Current Designation Appointment
1. Mr. SRINIVASAGOPALAN RANGARAJAN Chairman and Managing Director 14.09.2020 11-11-1998
2. Ms. REKHA MURTHY RANGARAJAN Whole-time Director 14.09.2020 11-11-1998
3. Mr. VIJAY ANANTH K Whole-time Director 06-05-2022 08-02-2022
4. Mr. SOWMYAN RAMAKRISHNAN Independent Director 10-09-2021 10-09-2021
5. Mr. PRASAD RAGHAVA MENON Independent Director 10-09-2021 10-09-2021
6. Ms. SABITHA RAO Independent Director 10-09-2021 10-09-2021
7. Mr. SASTRY VENKATA RAMA VADLAMANI Independent Director 10-09-2021 10-09-2021
8. Mr. MATHEW CYRIAC Nominee Director 04-06-2021 04-06-2021

Key Managerial Personnel:

S No. Name Designation Date of Appointment Date of
Cessation
1. Ms. MANVI BHASIN Company Secretary 19/07/2021 -
2. Mr. VENKATACHALAM VENKATA CFO 03/09/2021 -
SUBRAMANIAN
39 Corporate Overview Statutory Reports Financial Section

Annexure C
Composition of Committees of Board as on March 31, 2022:
1. Audit Committee:
S No. Name Designation Position held in
the Committee
1. Mr. SOWMYANRAMAKRISHNAN Non-Executive - Independent Director Chairman
2. Mr. PRASAD RAGHAVAMENON Non-Executive - Independent Director Member
3. Ms. SABITHA RAO Non-Executive - Independent Director Member
4. Mr. VADLAMANIVENKATA RAMA SASTRY Non-Executive - Independent Director Member

2. Nomination and Remuneration Committee:

S No. Name Designation Position held in
the Committee
1. Mr. PRASAD RAGHAVAMENON Non-Executive - Independent Director Chairman
2. Ms. SABITHA RAO Non-Executive - Independent Director Member
3. Mr. MATHEW CYRIAC Non-Executive - Nominee Director Member

3. Stakeholders Relationship Committee:

S No. Name Designation Position held in
the Committee
1. Mr. MATHEW CYRIAC Non-Executive - Nominee Director Chairperson
2. Mr. SOWMYANRAMA KRISHNAN Non-Executive - Independent Director Member
3. Mr. VADLAMANIVENKATA RAMA SASTRY Non-Executive - Independent Director Member
4. Mr. SRINIVASAGOPALAN RANGARAJAN Chairman and Managing Director Member

4. Corporate Social Responsibility Committee:

S No. Name Designation Position held in
the Committee
1. Ms. SABITHA RAO Non-Executive - Independent Director Chairperson
2. Mr. MATHEW CYRIAC Non-Executive - Nominee Director Member
3. Ms. REKHA MURTHY RANGARAJAN Whole-time Director (Executive Director) Member
 Data Patterns (India) Limited Annual Report 2021-22 40

Annexure - B to the Directors’ Report

Information pursuant to section 197 of the Companies Act, 2013 read with rule 5(1) of the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014

i. Ratio of managerial remuneration to median remuneration

a. Ratio of remuneration of individual directors to the median remuneration of the employees of the Company

Name of the Directors Ratio

Srinivasagopalan Rangarajan 18.29:1
Rekha Murthy Rangarajan 12.63:1
Vijay Ananth K 15.27:1

b. Ratio of remuneration of individual KMPs to the median re-muneration of the employees of the Company
Name of the KMP Ratio
Venkatachalam Venkata Subramanian CFO 8.96:1
Manvi Bhasin 1.35:1

ii. Percentage increase in the Median Remuneration of The ratio of the remuneration of the Company in F Y 2021-22 was 31.89%
iii. No of employees of on the rolls of the Company as at the end of the financial year was 662
iv. The average annual increase in the salaries of employees other than the managerial personnel for FY 202021 was 26.93% and that
of Managerial Remuneration was 10.28%.
v. The Company affirms remuneration is as per the Remuneration Policy of the Company.
41 Corporate Overview Statutory Reports Financial Section

Annexure - C to the Directors’ Report

CORPORATE GOVERNANCE COMPLIANCE CERTIFICATE

To
The Members,
Data Patterns (India) Limited.

I have examined the compliance of conditions of Corporate Governance by Data Patterns (India) Limited [CIN: L72200TN1998PLC061236]
(hereinafter referred to as ‘the Company’), for the year ended March 31, 2022 as stipulated in SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 (‘Listing Regulations’) as referred to in Regulation 15(2) of the Listing Regulations.
The compliance of conditions of Corporate Governance is the responsibility of the Management. My examination was limited to
procedures and implementation thereof, adopted by the Company for ensuring the compliance of the conditions of the Corporate
Governance. It is neither an audit nor an expression of opinion on the financial statements of the Company.
I further state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or effectiveness
with which the Management has conducted the affairs of the Company.
In my opinion and to the best of my information and according to the explanations given to me, I certify that the Company has complied
with the conditions of Corporate Governance as stipulated in the above-mentioned Listing Regulations, as applicable except as stated
below:
1. The Company has appointed Independent Directors into the Board of the Company w.e.f. 10th September, 2021. As per the
Company, for the period ending 31-3-2022, the Com-pany has held an Independent Directors meeting on 1st August 2022. This
meeting ought to have been conducted before 31-3-2022; however, since the company’s shares were listed only in December
2021, the Company could not hold the Independent Directors meeting before 31-3-2022 and has held it on 01st August, 2022.
2. Mr. Vijay Ananth was appointed as the Additional Director of the Company in its Board Meeting held on 08.02.2022. However,
intimation of his appointment has not been com-municated to the stock exchanges within 24 hours of the Board Meeting. As per
the Company, this was intimated to the Exchanges vide the Corporate Governance Report filed by the Company for quarter ended
31st March, 2022.
3. The Company is yet to comply with the performance evaluation of Independent Directors since the Independent Directors were
appointed on 10th September, 2021 and one year has not passed after their appointment. The fact is disclosed to the stock
exchange in the Corporate Governance report for the quarter 31.03.2022.

For Mohan Kumar & Associates

Sd/-
A. Mohan Kumar
Practicing Company Secretary
Membership Number: FCS 4347
Place: Chennai. Certificate of Practice Number: 19145
Date:02.08.2022 UDIN: F004347D000718271
 Data Patterns (India) Limited Annual Report 2021-22 42

Annexure - D to the Directors’ Report

ANNUAL REPORT ON CSR ACTIVITES TO BE INCLUDED IN THE BOARD’S REPORT FOR FINANCIAL YEAR COMMENCING ON OR
AFTER 1ST DAY OF APRIL, 2021
1. Brief outline on CSR Policy of the Company: The Company has framed Corporate Social Responsibility (CSR) Policy which
encompasses its philosophy and guides its sustained efforts for undertaking and supporting socially useful programs for the welfare
& sustainable development of the society.
2. Composition of CSR Committee:

S No. Name of the Director Designation/Nature of Number of CSR Number of CSR

Directorship Committee Meetings held Committee Meeting
during the year attended during the year
1 Sabitha Rao Chairperson 02 01
2 Rekha Murthy Rangarajan Member 02 02
3 Mathew Cyriac Member 02 01
2. Composition of Company’s CSR committee, its CSR Policy and CSR projects approved by the Board during the financial year 2021-22
are disclosed on the website of the company- www.datapatternsindia. Com
3. Impact assessment of CSR projects carried out in pursuance of sub-rule (3) of rule 8 of the Companies (Corporate Social responsibility
Policy) Rules, 2014, if applicable - The rule is not applicable to your Company.
4. Details of the amount available for set off in pursuance of sub-rule (3) of rule 7 of the Companies (Corporate Social responsibility
Policy) Rules, 2014 and amount required for set off for the financial year, if any-

Financial Year INR in crores

Profit Before Tax for F.Y. 2020-2021 74.53
Profit Before Tax for F.Y. 2019-2020 28.43
Profit Before Tax for F.Y. 2018-2019 10.36
Total profit for 3 financial years 113.32
Average Net Profit 37.77
CSR Amount for F.Y. 2021-2022 (2% of average net profits 0.76
Amount spent during FY 2021-22 0.76
Balance amount yet to be spent NIL
5. Average net profit of the Company as per section 135(5)- Rs. 37.77
6. (a) Two percent of average net profit of the Company as per Section 135(5)- Rs. 0.76 Cr
(b) Surplus arising out of the CSR projects or programmes or activities of the previous financial years- NIL
(c) Amount required to be set off for the financial year, if any- NIL
(d) Total CSR obligation for the financial year (7a+7b- 7c)- Rs. 0.76 Cr
7. (a) CSR amount spent or unspent for the financial year: Rs. 0.76 Cr
(b)

Total Amount Spent Amount Unspent (in Rs.)

for the Financial Year. Total Amount transferred to Unspent Amount transferred to any fund specified under
(in Rs.) CSR Account as per section 135(6). Schedule VII as per second proviso to section
135(5).
0.76 Cr NIL

(c) Details of CSR amount spent against ongoing projects for the financial year:
(1) (2) (3) (4) (5) (6) (7) (8)
S. Name Item from the Local Project Amount Mode of Mode of
No. of the list of activities area duration spent for implementation implementation
Project in Schedule VII (Yes/No) the project – Direct (Yes/No) – Through
to the Act (in Rs.) implementing agency.
NIL
43 Corporate Overview Statutory Reports Financial Section

(d) Amount spent in Administrative Overheads: NIL

(e) Amount spent on Impact Assessment, if applicable: NIL
(f ) Total amount spent for the Financial Year (8b+8c+8d+8e): Rs. 0.76 cr
• Excess amount for set off, if any
S No. Particular Amount (in Rs.)
(i) Two percent of average net profit of the company as per section 135(5) 0.76 cr
(ii) Total amount spent for the Financial Year 0.76 cr
(iii) Excess amount spent for the financial year [(ii)-(i)] NIL
(iv) Surplus arising out of the CSR projects or programmes or activities of the previous NA
financial years, if any
(v) Amount available for set off in succeeding financial years[(iii)-(iv)] NA

8. (a) Details of Unspent CSR amount for the preceding three financial years:
S. Preceding Amount Amount Amount transferred to any fund Amount remaining
No. Financial transferred spent in the specified under Schedule VII as per to be spent in
Year to Unspent reporting section 135(6), if any. succeeding financial
CSR Account Financial years. (in Rs.)
Name of Amount Date of
under section Year (in Rs.).
the Fund (in Rs). transfer
135 (6) (in Rs.)
NIL

(b) Details of CSR amount spent in the financial year for ongoing projects of the preceding financial year(s):
(1) (2) (3) (4) (5) (6) (7) (8)
S. Project Name of Financial Year Project Total Amount spent Cumulative amount
No. ID. the Project in which the duration amount on the project spent at the end of
project was allocated in the reporting reporting Financial
commenced for the Financial Year Year. (in Rs.)
project (in (in Rs)
Rs.)
NIL
9. In case of creation or acquisition of capital asset, furnish the details relating to the asset so created or acquiredthrough CSR spent in
the financial year (asset-wise details). NIL
(a) Date of creation or acquisition of the capital asset(s)
(b) Amount of CSR spent for creation or acquisition of capital asset
(c) Details of the entity or public authority or beneficiary under whose name such capital asset is registered, their address etc
(d) Provide details of the capital asset(s) created or acquired (including complete address and location of the capital asset)
10. Specify the reason(s), if the company has failed to spend two per cent of the average net profit as per section 135(5) – Not applicable
 Data Patterns (India) Limited Annual Report 2021-22 44

Annexure - E to the Directors’ Report

CEO and CFO Compliance Certificate

We, S. Rangarajan, Chairman and Managing Director and V Venkata Subramanian, Chief Financial Officer certify that:
A) We have reviewed the Financial Statements including the cash flow statement for the year ended 31st March, 2022 and to the best
of our knowledge and belief:
i) these statements do not contain any materially untrue statement or omit any material fact or contain statements that might
be misleading;
ii) these statements together present a true and fair view of the Company’s affairs and are in compliance with existing accounting
standards, applicable laws and regulations.
B) To the best of our knowledge and belief, no transactions entered into by the Company during the year ended 31st March, 2022
were fraudulent, illegal or violative of the Company’s code of conduct.
C) We accept responsibility for establishing and maintaining internal controls for financial reporting and we have evaluated the
effectiveness of internal control systems of the Company pertaining to financial reporting. Deficiencies in the design or operation
of such internal controls, if any, of which we are aware have been disclosed to the auditors and the Audit Committee and steps have
been taken to rectify these deficiencies.
D) 1) There has not been any significant change in internal control over financial reporting during the year under reference;
2) There has not been any significant change in accounting policies during the year requiring disclosure in the notes to the
financial statement; and
3) We are not aware of any instance, during the relevant reporting period of significant fraud with involvement therein of the
management or any employee having a significant role in the Company’s internal control system over financial reporting.

Chennai Srinivasagopalan Rangarajan V. Venkata Suramanian

23rd May, 2022 Chairman and Managing Director CFO
45 Corporate Overview Statutory Reports Financial Section

Annexure - F to the Directors’ Report

CERTIFICATE OF NON-DISQUALIFICATION
OF DIRECTORS
(Pursuant to Regulation 34(3) and Schedule V Para C clause (10)(i) of the
SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015)

To
The Members,
Data Patterns (India) Limited,
Plot No.H9, Fourth Main Road, SIPCOT IT,
Siruseri, Chennai – 603103.

I have examined the relevant registers, records, forms, returns and disclosures received from the Directors of Data Patterns (India) Limited,
having CIN: L72200TN1998PLC061236 and having registered office Plot No.H9, Fourth Main Road, SIPCOT IT, Siruseri, Chennai – 603103.
(hereinafter referred to as ‘the Company’), produced before me by the Company for the purpose of issuing this Certificate, in accordance
with Regulation 34(3) read with Schedule V Para-C Sub clause 10(i) of the Securities Exchange Board of India (Listing Obligations and
Disclosure Requirements) Regulations, 2015.
In my opinion and to the best of my information and according to the verifications
(including Directors Identification Number (DIN) status at the portal www.mca.gov.in) as considered necessary and explanations
furnished to me by the Company & its officers,
I hereby certify that none of the Directors on the Board of the Company as stated below for the Financial Year ending on 31st March,
2022 have been debarred or disqualified from being appointed or continuing as Directors of companies by the Securities and Exchange
Board of India and Ministry of Corporate Affairs.

S No. Name of Director DIN Date of appointment at Original Date of

current designation appointment in Company
1. Mr. PRASAD RAGHAVA MENON 00005078 10-09-2021 10-09-2021
2. Mr. SOWMYAN RAMAKRISHNAN 00005090 10-09-2021 10-09-2021
3. Mr. SASTRY VENKATA RAMA VADLAMANI 00027875 10-09-2021 10-09-2021
4. Mr. SRINIVASAGOPALAN RANGARAJAN 00643456 14-09-2020 11-11-1998
5. Mr. MURTHY RANGARAJAN REKHA 00647472 14-09-2020 11-11-1998
6. Mr. MATHEW CYRIAC 01903606 04-06-2021 04-06-2021
7. Mrs. SABITHA RAO 06908122 10-09-2021 10-09-2021
8. Mr. VIJAY ANANTH 09398784 06-05-2022 08-02-2022
Ensuring the eligibility of for the appointment / continuity of every Director on the Board is the responsibility of the management of
the Company. My responsibility is to express an opinion on these based on my verification. This certificate is neither an assurance as to
the future viability of the Company nor of the efficiency or effectiveness with which the management has conducted the affairs of the
Company.

For Mohan Kumar & Associates

Sd/-
A. Mohan Kumar
Practicing Company Secretary
Membership Number: FCS 4347
Place: Chennai. Certificate of Practice Number: 19145
Date:02.08.2022 UDIN: F004347D000718335
 Data Patterns (India) Limited Annual Report 2021-22 46

Independent Auditor’s Report

TO
THE MEMBERS OF
DATA PATTERNS (INDIA) LIMITED

Report on the Audit of the Financial Statements state of affairs of the Company as at March 31, 2022 and its profit,
total comprehensive income, changes in equity and its cash flows
Opinion for the year ended on that date.
We have audited the accompanying financial statements of Data
Patterns (India) Limited (the “Company”), which comprise the Basis for Opinion
Balance Sheet as at March 31, 2022, the Statement of Profit and We conducted our audit of the financial statements in accordance
Loss (including Other Comprehensive Income), the Statement with the Standards on Auditing (“SA”s) specified under section
of Changes in Equity and the Statement of Cash Flows for the 143(10) of the Act. Our responsibilities under those Standards
year ended on that date and a summary of significant accounting are further described in the Auditor’s Responsibilities for the
policies and other explanatory information (hereinafter referred Audit of the Financial Statements section of our report. We are
to as the “financial statements”). independent of the Company in accordance with the Code of
In our opinion and to the best of our information and according Ethics issued by the Institute of Chartered Accountants of India
to the explanations given to us, the aforesaid financial statements (“ICAI”) together with the ethical requirements that are relevant
give the information required by the Companies Act, 2013 (the to our audit of the financial statements under the provisions of
“Act”) in the manner so required and give a true and fair view the Act and the Rules made thereunder, and we have fulfilled
in conformity with the Indian Accounting Standards prescribed our other ethical responsibilities in accordance with these
under section 133 of the Act read with the Companies (Indian requirements and the ICAI’s Code of Ethics. We believe that the
Accounting Standards) Rules, 2015, as amended, (“Ind AS”) and audit evidence obtained by us is sufficient and appropriate to
other accounting principles generally accepted in India, of the provide a basis for our audit opinion on the financial statements.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements
of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming
our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to
be the key audit matters to be communicated in our report.

S. No. Key Audit Matter Auditor’s Response

1 Revenue recognition from contracts with customers as Our audit procedures, among others included the following:
per Ind AS 115:
• We reviewed the Company’s revenue recognition policy
Refer Note 1 (Accounting policy) and Note 23 to financial to ensure whether it is in compliance with Ind AS 115.
statements
• We understood the nature of goods sold / services
During the year ended March 31, 2022, the Company has rendered to the customers, assessed the design and
recognised revenue of Rs. 310.85 crores with respect to sale tested the operating effectiveness of internal controls
of goods and services. related to revenue recognition.
The Company recognizes revenue based on the terms of • We performed the following tests for a sample of
the contract with customers. Terms of sales arrangements transactions pertaining to sale of goods or services during
with various customers including incoterms determine the year
the timing of transfer of control and require judgment in
a. Tested supporting documentation including sales
determining timing of revenue recognition.
invoices, customer contracts/sales orders, shipping
Due to the judgement relating to determination of point of documents and other related records.
time in satisfaction of performance obligations, this matter
b. Verified the terms of the contract and confirmed
is considered as Key Audit Matter.
whether the performance obligations stipulated
under the contract are the same as identified by the
company.
47 Corporate Overview Statutory Reports Financial Section

S. No. Key Audit Matter Auditor’s Response

c. Verified whether the amount of revenue recognized
is based on the transaction price identified to the
performance obligation satisfied as per the contract.
d. Verified whether the recognition of revenue is
in accordance with the incoterms / when the
conditions for revenue recognitions are satisfied.
e. Verified whether the performance obligation is
satisfied at a point in time or over a period of time as
per the terms of the contract.
f. Tested the supporting documentation for significant
value of sale transactions recorded during the period
closer to the year end to ensure revenue recognition
criteria is met as per Ind AS 115.
g. Assessed the relevant disclosures made in the
financial statements.
2 Impairment of Trade Receivables: Our audit procedures, among others included the following:
Refer Note 1 (Accounting policy) and Note 6 to financial • We assessed the design and tested the operating
statements effectiveness of internal controls related to the processes
in place for recoverability of customer dues.
Trade receivables as at 31st March 2022 is Rs 198.31 crores
which constitutes around 28% of the total assets of the • We reviewed the trade receivables and evaluated the
company. basis for management’s conclusion regarding the
recoverability of the same based on the evidence
Significant portion of balances outstanding under trade
supporting the completion of performance obligation
receivables are from Government customers / Public sector
and the reasons for the delays in recovery.
undertakings.
• We have also obtained the status of long pending
Considering the nature of the product and services,
receivables based on communications with the
detailed procedures involved in acceptance of the same by
customers and subsequent collections (if any).
customers may take substantial time and therefore assessing
the recoverability of trade receivables involves significant • We assessed the relevant disclosures made in the financial
amounts of judgement. Hence, we have considered this as statements.
a Key Audit Matter.
3 Inventory Valuation: Our audit procedures, among others included the following:
Refer Note 1 (Accounting policy) and Note 5 to financial • We assessed the design and tested the operating
statements effectiveness of internal controls related to Inventory
management.
Inventories held as at 31st March 2022 is Rs 119.77 crores
which constitutes around 17% of the total assets of the • We assessed whether the policy and frequency of physical
company. verification of inventory implemented by the Company is
reasonable and adequate.
Considering the nature of the inventories, its valuation
involves significant management judgement in • We observed the physical verification of inventory as part
identification and allocation of cost of conversion to work of yearend audit procedure and applied roll back / roll
in progress and finished goods, identification of obsolete forward procedure to validate the yearend balance.
inventories and hence we considered this to be a Key Audit
• We checked the valuation of material cost of inventories
Matter.
at the yearend on a sample basis to ensure whether the
same is in line with the accounting policy adopted by the
company.
• We verified the methodology of allocation and absorption
of conversion cost on the closing inventory and ensured
its reasonableness.
• We tested the operating effectiveness of internal controls
related to identification and provisioning / write off of
obsolete inventories.
• We assessed the relevant disclosures made in the financial
statements.
 Data Patterns (India) Limited Annual Report 2021-22 48

Information Other than the Financial Statements auditor’s report that includes our opinion. Reasonable assurance
and Auditor’s Report Thereon is a high level of assurance but is not a guarantee that an audit
The Company’s Board of Directors is responsible for the other conducted in accordance with SAs will always detect a material
information. The other information comprises the information misstatement when it exists. Misstatements can arise from fraud
included in the Board’s Report including Annexures to Board’s or error and are considered material if, individually or in the
Report but does not include the financial statements and our aggregate, they could reasonably be expected to influence the
auditor’s report thereon. economic decisions of users taken on the basis of these financial
statements.
Our opinion on the financial statements does not cover the
other information and we do not express any form of assurance As part of an audit in accordance with SAs, we exercise professional
conclusion thereon. judgment and maintain professional scepticism throughout the
audit. We also:
In connection with our audit of the financial statements, our
responsibility is to read the other information and, in doing so, • Identify and assess the risks of material misstatement of the
consider whether the other information is materially inconsistent financial statements, whether due to fraud or error, design
with the financial statements, or our knowledge obtained during and perform audit procedures responsive to those risks, and
the course of our audit or otherwise appears to be materially obtain audit evidence that is sufficient and appropriate to
misstated. provide a basis for our opinion. The risk of not detecting a
material misstatement resulting from fraud is higher than
If, based on the work we have performed, we conclude that for one resulting from error, as fraud may involve collusion,
there is a material misstatement of this other information, we forgery, intentional omissions, misrepresentations, or the
are required to report that fact. We have nothing to report in this override of internal control.
regard.
• Obtain an understanding of internal financial control
Management’s Responsibilities for the Financial relevant to the audit in order to design audit procedures that
Statements are appropriate in the circumstances. Under section 143(3)(i)
of the Act, we are also responsible for expressing our opinion
The Company’s Board of Directors is responsible for the matters
on whether the Company has adequate internal financial
stated in section 134(5) of the Act with respect to the preparation
controls system in place and the operating effectiveness of
of these financial statements that give a true and fair view of
such controls.
the financial position, financial performance, including other
comprehensive income, changes in equity and cash flows of the • Evaluate the appropriateness of accounting policies used
Company in accordance with the Ind AS and other accounting and the reasonableness of accounting estimates and related
principles generally accepted in India. This responsibility also disclosures made by the management.
includes maintenance of adequate accounting records in
• Conclude on the appropriateness of management’s use of
accordance with the provisions of the Act for safeguarding the
the going concern basis of accounting and, based on the
assets of the Company and for preventing and detecting frauds
audit evidence obtained, whether a material uncertainty
and other irregularities; selection and application of appropriate
exists related to events or conditions that may cast
accounting policies; making judgments and estimates that
significant doubt on the Company’s ability to continue as
are reasonable and prudent; and design, implementation and
a going concern. If we conclude that a material uncertainty
maintenance of adequate internal financial controls, that were
exists, we are required to draw attention in our auditor’s
operating effectively for ensuring the accuracy and completeness
report to the related disclosures in the financial statements
of the accounting records, relevant to the preparation and
or, if such disclosures are inadequate, to modify our opinion.
presentation of the financial statements that give a true and fair
Our conclusions are based on the audit evidence obtained
view and are free from material misstatement, whether due to
up to the date of our auditor’s report. However, future events
fraud or error.
or conditions may cause the Company to cease to continue
In preparing the financial statements, Management is responsible as a going concern.
for assessing the Company’s ability to continue as a going concern,
• Evaluate the overall presentation, structure and content
disclosing, as applicable, matters related to going concern and
of the financial statements, including the disclosures, and
using the going concern basis of accounting unless management
whether the financial statements represent the underlying
either intends to liquidate the Company or to cease operations, or
transactions and events in a manner that achieves fair
has no realistic alternative but to do so.
presentation.
The Board of Directors is also responsible for overseeing the
We communicate with those charged with governance regarding,
Company’s financial reporting process.
among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant
Auditor’s Responsibilities for the Audit of the deficiencies in internal control that we identify during our audit.
Financial Statements
Our objectives are to obtain reasonable assurance about whether We also provide those charged with governance with a statement
the financial statements as a whole are free from material that we have complied with relevant ethical requirements
misstatement, whether due to fraud or error, and to issue an regarding independence, and to communicate with them all
49 Corporate Overview Statutory Reports Financial Section

relationships and other matters that may reasonably be thought information and according to the explanations given to
to bear on our independence, and where applicable, related us:
safeguards.
i. The Company has disclosed the impact of
From the matters communicated with those charged with pending litigations on its financial position in its
governance, we determine those matters that were of most financial statements - Refer note no 32 to financial
significance in the audit of the financial statements of the current statements.
period and are therefore the key audit matters. We describe these
ii. The Company has certain long-term contracts for
matters in our auditor’s report unless law or regulation precludes
which there are no material foreseeable losses. The
public disclosure about the matter or when, in extremely rare
Company did not have any derivative contracts.
circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences iii. There has been no delay in transferring amounts,
of doing so would reasonably be expected to outweigh the required to be transferred, to the Investor Education
public interest benefits of such communication. and Protection Fund by the Company.
iv. (a) The Management has represented that, to
Report on Other Legal and Regulatory Requirements
the best of its knowledge and belief, no funds
1. As required by Section 143(3) of the Act, based on our audit (which are material either individually or in the
we report that: aggregate) have been advanced or loaned
a) We have sought and obtained all the information and or invested (either from borrowed funds or
explanations which to the best of our knowledge and share premium or any other sources or kind
belief were necessary for the purposes of our audit. of funds) by the Company to or in any other
person or entity, including foreign entity
b) In our opinion, proper books of account as required by (“Intermediaries”), with the understanding,
law have been kept by the Company so far as it appears whether recorded in writing or otherwise,
from our examination of those books. that the Intermediary shall, whether, directly
c) The Balance Sheet, the Statement of Profit and Loss or indirectly lend or invest in other persons or
including Other Comprehensive Income, Statement entities identified in any manner whatsoever
of Changes in Equity and the Statement of Cash Flows by or on behalf of the Company (“Ultimate
dealt with by this Report are in agreement with the Beneficiaries”) or provide any guarantee,
books of account. security or the like on behalf of the Ultimate
Beneficiaries;
d) In our opinion, the aforesaid financial statements
comply with the Ind AS specified under Section 133 of (b) The Management has represented, that, to
the Act. the best of its knowledge and belief, no funds
(which are material either individually or in
e) On the basis of the written representations received the aggregate) have been received by the
from the directors, taken on record by the Board of Company from any person or entity, including
Directors, none of the directors is disqualified as on foreign entity (“Funding Parties”), with the
March 31, 2022, from being appointed as a director in understanding, whether recorded in writing
terms of Section 164(2) of the Act. or otherwise, that the Company shall, whether,
f) With respect to the adequacy of the internal financial directly or indirectly, lend or invest in other
controls over financial reporting of the Company and persons or entities identified in any manner
the operating effectiveness of such controls, refer to our whatsoever by or on behalf of the Funding
separate Report in “Annexure A”. Our report expresses Party (“Ultimate Beneficiaries”) or provide any
an unmodified opinion on the adequacy and operating guarantee, security or the like on behalf of the
effectiveness of the Company’s internal financial Ultimate Beneficiaries;
controls over financial reporting. (c) Based on the audit procedures that have been
g) With respect to the other matters to be included in the considered reasonable and appropriate in
Auditor’s Report in accordance with the requirements the circumstances, nothing has come to our
of section 197(16) of the Act, as amended: notice that has caused us to believe that the
representations under sub-clause (i) and (ii)
In our opinion and to the best of our information
of Rule 11(e), as provided under (a) and (b)
and according to the explanations given to us, the
above, contain any material misstatement.
remuneration paid by the Company to its directors
during the year is in accordance with the provisions of v. (a) Attention is drawn to note 46 (c) to the
section 197 of the Act. Financial Statements regarding declaration of
proposed final dividend for the previous year
h) With respect to the other matters to be included
FY 2020-21. In respect of the said dividend
in the Auditor’s Report in accordance with Rule 11
paid during the year by the company, except
of the Companies (Audit and Auditors) Rules, 2014,
for not transferring amount of dividend
as amended, in our opinion and to the best of our
 Data Patterns (India) Limited Annual Report 2021-22 50

to separate bank account, the payment of statement on the matters specified in paragraphs 3 and 4 of
dividend is in accordance with Section 123 of the Order.
the Act.
(b) The Board of Directors of the Company have
proposed final dividend for the year which is For R.G.N. Price & Co.
subject to the approval of the members at the Chartered Accountants
ensuing Annual General Meeting. The amount FR No. 002785S
of dividend proposed is in accordance with
section 123 of the Act, as applicable K. Venkatakrishnan
2. As required by the Companies (Auditor’s Report) Order, 2020 Partner
(the “Order”) issued by the Central Government in terms Place: Chennai Membership No.208591
of Section 143(11) of the Act, we give in “Annexure B” a Date: May 23, 2022 UDIN: 22208591AKBVKM4811
51 Corporate Overview Statutory Reports Financial Section

ANNEXURE “A” TO THE INDEPENDENT AUDITOR’S REPORT

(Referred to in paragraph 1(f ) under ‘Report on Other Legal and Regulatory Requirements sec-
tion of our report to the Members of Data Patterns (India) Limited of even date)

Report on the Internal Financial Controls Over the financial statements, whether due to fraud or error.
Financial Reporting under Clause (i) of sub-section We believe that the audit evidence we have obtained, is sufficient
3 of Section 143 of the Companies Act, 2013 (the and appropriate to provide a basis for our audit opinion on the
“Act”) Company’s internal financial controls system over financial
We have audited the internal financial controls over financial reporting.
reporting of Data Patterns (India) Limited (the “Company”) as
of March 31, 2022 in conjunction with our audit of the financial Meaning of Internal Financial Controls Over
statements of the Company for the year ended on that date. Financial Reporting
A company's internal financial control over financial reporting is a
Management’s Responsibility for Internal Financial process designed to provide reasonable assurance regarding the
Controls reliability of financial reporting and the preparation of financial
The Management of the Company is responsible for establishing statements for external purposes in accordance with generally
and maintaining internal financial controls based on the internal accepted accounting principles. A company's internal financial
control over financial reporting criteria established by the control over financial reporting includes those policies and
Company considering the essential components of internal procedures that (1) pertain to the maintenance of records that,
control stated in the Guidance Note on Audit of Internal Financial in reasonable detail, accurately and fairly reflect the transactions
Controls Over Financial Reporting issued by the Institute of and dispositions of the assets of the company; (2) provide
Chartered Accountants of India (the “ICAI”). These responsibilities reasonable assurance that transactions are recorded as necessary
include the design, implementation and maintenance of to permit preparation of financial statements in accordance
adequate internal financial controls that were operating effectively with generally accepted accounting principles, and that receipts
for ensuring the orderly and efficient conduct of its business, and expenditures of the company are being made only in
including adherence to company’s policies, the safeguarding of accordance with authorisations of management and directors
its assets, the prevention and detection of frauds and errors, the of the company; and (3) provide reasonable assurance regarding
accuracy and completeness of the accounting records, and the prevention or timely detection of unauthorised acquisition, use,
timely preparation of reliable financial information, as required or disposition of the company's assets that could have a material
under the Act. effect on the financial statements.

Auditor’s Responsibility Inherent Limitations of Internal Financial Controls

Our responsibility is to express an opinion on the Company's Over Financial Reporting
internal financial controls over financial reporting of the Company Because of the inherent limitations of internal financial controls
based on our audit. We conducted our audit in accordance with over financial reporting, including the possibility of collusion
the Guidance Note on Audit of Internal Financial Controls Over or improper management override of controls, material
Financial Reporting (the “Guidance Note”) issued by the ICAI and misstatements due to error or fraud may occur and not be
the Standards on Auditing prescribed under Section 143(10) of detected. Also, projections of any evaluation of the internal
the Companies Act, 2013, to the extent applicable to an audit financial controls over financial reporting to future periods are
of internal financial controls. Those Standards and the Guidance subject to the risk that the internal financial control over financial
Note require that we comply with ethical requirements and plan reporting may become inadequate because of changes in
and perform the audit to obtain reasonable assurance about conditions, or that the degree of compliance with the policies or
whether adequate internal financial controls over financial procedures may deteriorate.
reporting was established and maintained and if such controls
operated effectively in all material respects. Opinion
Our audit involves performing procedures to obtain audit In our opinion, to the best of our information and according to
evidence about the adequacy of the internal financial controls the explanations given to us, the Company has, in all material
system over financial reporting and their operating effectiveness. respects, an adequate internal financial controls system over
Our audit of internal financial controls over financial reporting financial reporting and such internal financial controls over
included obtaining an understanding of internal financial financial reporting were operating effectively as at March 31, 2022,
controls over financial reporting, assessing the risk that a material based on the criteria for internal financial control over financial
weakness exists, and testing and evaluating the design and reporting established by the Company considering the essential
operating effectiveness of internal control based on the assessed components of internal control stated in the Guidance Note
risk. The procedures selected depend on the auditor’s judgement, on Audit of Internal Financial Controls Over Financial Reporting
including the assessment of the risks of material misstatement of issued by the ICAI.
 Data Patterns (India) Limited Annual Report 2021-22 52

ANNEXURE ‘B’ TO THE INDEPENDENT AUDITOR’S REPORT

(Referred to in paragraph 2 under ‘Report on Other Legal and Regulatory Requirements’ section
of our report to the Members of Data Patterns (India) Limited of even date)

To the best of our information and according to the explanations (d) The Company has not revalued any of its Property, Plant
provided to us by the Company and the books of account and and Equipment and intangible assets during the year.
records examined by us in the normal course of audit, we state
(e) No proceedings have been initiated during the year or
that:
are pending against the Company as at March 31, 2022
i. In respect of the Company’s Property, Plant and Equipment for holding any benami property under the Benami
and Intangible Assets: Transactions (Prohibition) Act, 1988 (as amended in
2016) and rules made thereunder.
(a) (i) The Company has maintained proper records
showing full particulars, including quantitative ii. (a) Physical verification of inventories has been conducted
details and situation of Property, Plant and at reasonable intervals by the Management. In
Equipment. our opinion, the frequency of such verification is
reasonable, and procedures and coverage as followed
(ii) The Company has maintained proper records
by management were appropriate. No discrepancies
showing full particulars of intangible assets.
were noticed on verification between the physical
(b) The Company has adopted a policy of physically stocks and the book records that were 10% or more in
verifying its fixed assets every year which in our opinion the aggregate for each class of inventory.
is reasonable having regard to the size of the Company
(b) According to the information and explanations given to
and nature of its business. During the year, fixed assets
us and on the basis of our examination of the records
have been physically verified by the Management and
of the Company, the Company has been sanctioned
according to the information and explanation given
working capital limits in excess of five crore rupees, in
to us, there are no discrepancies noticed on such
aggregate, from banks on the basis of security of current
verification.
assets. Details of differences between quarterly returns
(c) According to the information and explanations given to or statements filed by the Company with such banks
us and on the basis of our examination, we report that, and the books of account on the respective dates are
the company does not have any immovable property given below.
in its name. In respect of leasehold land, the lease
agreement is in the name of the Company, where the
Company is the lessee.

(Amount in Rs Crores)
Particulars Amount as per Amount as per Reported excess /
books of account returns submitted (shortage)
to Banks #
A B C=B-A
Trade Receivables:
As at 30th June 2021 151.07 155.53 4.46
As at 30th September 2021 134.51 135.16 0.65
As at 31st December 2021 119.28 122.65 3.37
Trade Payables:
As at 30th June 2021 (3.25) * 3.01 6.26
As at 30th September 2021 (2.95) * 0.92 3.87
As at 31st December 2021 (0.10) * 2.84 2.94
Inventories:
As at 30th September 2021 86.81 83.89 (2.92)
As at 31st December 2021 106.51 102.47 (4.04)
* Represents debit balances in vendor ledgers (net)
# We were informed that the Company has not submitted its quarterly stock statements for the quarter ended 31 March 2022 as
on the date of this report.
Refer Note no 46(J) to the financial statements for reasons for excess / shortage as mentioned in the table above
53 Corporate Overview Statutory Reports Financial Section

iii. According to the information and explanations given to been made and maintained. We have however, not made
us, and the records of the Company examined by us, the a detailed examination of the cost records with a view to
Company has not made any investments in, companies, determine whether they are accurate or complete.
firms, Limited Liability Partnerships, and granted unsecured
vii. In respect of statutory dues:
loans to other parties, during the year, and hence reporting
under this clause 3(iii) of the Order is not applicable. (a) In our opinion, the Company has generally been regular
in depositing undisputed statutory dues, including
iv. The Company has not granted any loans, secured or
Goods and Services tax, Provident Fund, Employees’
unsecured to companies, firms, limited liability partnerships
State Insurance, Income Tax, duty of Custom, and other
or other parties covered in the register maintained under
statutory dues applicable to it with the appropriate
section 189 of the Companies Act, 2013.
authorities.
v. According to the information and explanations given to
There were no undisputed amounts payable in respect
us, and the records of the Company examined by us, the
of Goods and Service tax, Provident Fund, Employees’
Company has not accepted any deposit or amounts which
State Insurance, Income Tax, Sales Tax, Service Tax, duty
are deemed to be deposits. Hence, reporting under clause
of Custom, duty of Excise, Value Added Tax, Cess and
3(v) of the Order is not applicable.
other material statutory dues in arrears as at March 31,
vi. We have broadly reviewed the cost records maintained by 2022 for a period of more than six months from the date
the Company pursuant to the Companies (Cost Records and they became payable.
Audit) Rules, 2014 prescribed by the Central Government
(b) Details of statutory dues referred to in sub-clause (a)
under section 148 (1) of Companies Act, 2013 and are of the
above which have not been deposited as on March 31,
opinion that prima facie the prescribed cost records have
2022 on account of disputes are given below:

Nature of the statute Nature of Dues Period Amount (Rs Lakhs) Forum where dispute is
pending
Income Tax Act Income Tax AY 2018-19 131.21 Commissioner of Income Tax
& AY 2019-20 (Appeals)
Central Sales Tax Act Central Sales Tax FY 2002-03 63.84 Sales Tax Appellate Tribunal,
Tamilnadu
Finance Act, 1994 Income Tax FY 2007-08 to 47.55 Commissioner (Appeals),
FY 2011-12 Service Tax
TN VAT Act Value Added Tax FY 2008-09, 27.76 Appellate Deputy
FY 2012-13 & Commissioner of State Taxes,
FY 2013-14 Chennai
TN VAT Act Value Added Tax FY 2014-15 14.82 Commercial Tax Officer,
Chennai

viii. According to the information and explanations given to us and on the basis of our examination of the records of the Company,
there were no transactions relating to previously unrecorded income that have been surrendered or disclosed as income during
the year in the tax assessments under the Income Tax Act, 1961.
ix. (a) According to the information and explanations given to us and on the basis of our examination of the records of the Company,
the company has not defaulted in repayment of loans or other borrowings or in the payment of interest thereon to any lender
except few delays in payments as given below;

Nature of borrowing Name of lender Amount not paid Whether principal No. of days delay
including debt securities on due date (Rs or interest
Lakhs)
Term Loan HDFC Bank 6.98 Principal 2
Auto Loan HDFC Bank 2.26 Principal 10
Auto Loan HDFC Bank 0.59 Interest 10
 Data Patterns (India) Limited Annual Report 2021-22 54

(b) According to the information and explanations given to complaints during the year and hence reporting under
us and on the basis of our examination of the records clause 3(xi)(c) of the Order is not applicable.
of the Company, the Company has not been declared
xii. The Company is not a Nidhi Company and hence reporting
wilful defaulter by any bank or financial institution or
under clause (xii) of the Order is not applicable.
government or any government authority.
xiii. In our opinion, the Company is in compliance with Section
(c) According to the information and explanations given to
177 and 188 of the Companies Act, 2013 with respect to
us and on the basis of our examination of the records
applicable transactions with the related parties and the
of the Company, the term loans were applied for the
details of related party transactions have been disclosed
purpose for which they were raised.
in the financial statements as required by the applicable
(d) According to the information and explanations given accounting standards.
to us and on an overall examination of the financial
xiv. (a) In our opinion, the Company has an adequate internal
statements of the Company, funds raised on short-term
audit system commensurate with the size and the
basis have, prima facie, not been used during the year
nature of its business.
for long-term purposes by the Company.
(b) We have considered, the internal audit reports for the
(e) According to the information and explanations given to
year under audit, issued to the Company during the
us and on the basis of our examination of the records
year and till date, in determining the nature, timing and
of the Company, the Company does not have any
extent of our audit procedures.
subsidiaries, joint ventures or associate companies and
hence reporting under clause 3(ix) (e) and (f ) of the xv. In our opinion and according to the information and
Order is not applicable explanations given to us, the Company has not entered
into any non-cash transactions with its directors or persons
x. (a) In our opinion and according to information and
connected with its directors. and hence provisions of section
explanations given by the management and audit
192 of the Companies Act, 2013 are not applicable to the
procedures performed by us, monies raised by the
Company.
Company by way of initial public offer (“IPO”) were
applied for the purpose for which they were raised, xvi. (a) In our opinion, the Company is not required to be
though idle /surplus funds from IPO which were not registered under section 45-IA of the Reserve Bank of
required for immediate utilization have been gainfully India Act, 1934. Hence, reporting under clause 3(xvi)(a),
invested in deposits with monitoring agency. The (b) and (c) of the Order is not applicable.
unutilized funds from IPO and private placement of
(b) In our opinion, there is no core investment company
shares through pre- IPO amounting to Rs 154.88 crores
within the Group (as defined in the Core Investment
were available under fixed deposits and bank balances
Companies (Reserve Bank) Directions, 2016) and
with monitoring agency as at 31st March 2022.
accordingly reporting under clause 3(xvi)(d) of the
(b) According to the information and explanations given Order is not applicable.
by the management and audit procedures performed
xvii. The Company has not incurred cash losses during the
by us, the Company has complied with provisions of
financial year covered by our audit and the immediately
section 42 of the Companies Act, 2013 in respect of the
preceding financial year.
private placement of shares during the year. According
to the information and explanations given by the xviii. There has been no resignation of the statutory auditors of
management, we report that the amounts raised, have the Company during the year. Accordingly, reporting under
been used for the purposes for which the funds were clause 3(xviii) of the Order is not applicable.
raised as explained in x(a) above. xix. On the basis of the financial ratios, ageing and expected dates
xi. (a) Based on examination of the books and records of of realisation of financial assets and payment of financial
the Company and according to the information and liabilities, other information accompanying the financial
explanations given to us, no fraud by the Company and statements and our knowledge of the Board of Directors
no material fraud on the Company has been noticed or and Management plans and based on our examination of
reported during the year. the evidence supporting the assumptions, nothing has
come to our attention, which causes us to believe that
(b) According to the information and explanations given
any material uncertainty exists as on the date of the audit
to us, no report under sub-section (12) of section 143
report indicating that Company is not capable of meeting its
of the Act has been filed in Form ADT-4 as prescribed
liabilities existing at the date of balance sheet as and when
under rule 13 of Companies (Audit and Auditors) Rules,
they fall due within a period of one year from the balance
2014 with the Central Government, during the year and
sheet date. We, however, state that this is not an assurance as
upto the date of this report.
to the future viability of the Company. We further state that
(c) According to the information and explanations given to our reporting is based on the facts up to the date of the audit
us, the Company has not received any whistle blower report and we neither give any guarantee nor any assurance
55 Corporate Overview Statutory Reports Financial Section

that all liabilities falling due within a period of one year from in Schedule VII to the Companies Act in compliance with
the balance sheet date, will get discharged by the Company second proviso to sub-section (5) of Section 135 of the said
as and when they fall due. Act. Accordingly, reporting under clause 3(xx)(a) of the Order
is not applicable for the year.
xx. In our opinion and according to the information and
explanations given to us, there are no unspent amounts xxi. The company is not required to prepare consolidated
towards Corporate Social Responsibility (CSR) on other than financial statements and hence reporting under this clause
ongoing projects requiring a transfer to a Fund specified is not applicable
 Data Patterns (India) Limited Annual Report 2021-22 56

Balance Sheet
(All figures are in INR Crores unless specifically stated otherwise)

Particulars Note No As at As at
31st March 2022 31st March 2021
ASSETS
Non-current assets
(a) Property, Plant and Equipment 2 44.16 29.21
(b) Capital Work in Progress 2 17.30 -
(c) Intangible Assets 2 1.35 0.56
(d) Right of Use Assets 3 1.97 3.44
(e) Other Financial Assets 4 117.79 34.07
(f ) Deferred Tax Assets (Net) 15 0.76 -
(g) Other non- current assets 3.49 -
186.82 67.28
Current assets
(a) Inventories 5 119.77 73.74
(b) Financial Assets
(i) Trade receivables 6 198.31 155.94
(ii) Cash and cash equivalents 7 177.08 8.80
(iii) Other Financial Assets 8 8.86 5.09
(c) Other current assets 9 15.83 17.75
519.85 261.32
TOTAL 706.67 328.60
EQUITY AND LIABILITIES
Equity
(a) Share capital 10 10.38 1.70
(b) Other Equity 11 564.13 206.23
574.51 207.93
Non-current liabilities
(a) Financial Liabilities
(i) Borrowings 12 0.73 9.77
(ii) Lease Liabilities 13 1.11 2.43
(b) Provisions 14 11.16 8.52
(c) Deferred Tax Liability (Net) 15 - 0.87
(d) Other Non Current liabilities 16 15.70 27.37
28.70 48.96
Current liabilities
(a) Financial Liabilities
(i) Borrowings 17 6.04 23.46
(ii) Lease Liabilities 13 1.32 1.51
(iii) Trade payables
(a) Total outstanding dues of micro and small enterprises 18 3.72 0.24
(b) Total outstanding dues of creditors other than micro and small 34.43 11.76
enterprises
(iv) Other Financial Liabilities 19 22.07 4.01
(b) Other current liabilities 20 22.68 24.64
(c) Provisions 21 0.72 0.96
(d) Current tax Liabilities 22 12.48 5.13
103.46 71.71
TOTAL 706.67 328.60
Summary of Significant accounting policies 1

The accompanying notes are an integral part of the financial statements

For and on behalf of the Board This is the Balance Sheet referred to in our report of even date
For R.G.N. Price & Co.,
Chartered Accountants
FR No.002785S
Srinivasagopalan Rangarajan Rekha Murthy Rangarajan K Venkatakrishnan
Director Director Partner
DIN : 00643456 DIN : 00647472 M.No. 208591
Venkata Subramanian Venkatachalam Manvi Bhasin
Place: Chennai Chennai Chief Financial Officer Company Secretary
Date: 23rd May 2022 M No: 49883
57 Corporate Overview Statutory Reports Financial Section

Statement of profit and loss

(All figures are in INR Crores unless specifically stated otherwise)

Particulars Note No For the year ended For the year ended
31st March 2022 31st March 2021
I. Revenue from Contract with Customers 23 310.85 223.95
II. Other Income 24 3.96 2.60
III. Total Income 314.81 226.55
IV. Expenses:
a) Cost of materials consumed 25 91.59 62.97
b) Changes in inventories of finished goods, work in progress and
26 (5.52) 7.44
stock-in-trade
c) Employee benefits expenses 27 62.35 48.42
d) Finance cost 28 10.99 14.50
e) Depreciation / Amortization 29 6.63 5.57
f) Other expenses 30 21.39 13.13
Total Expenses 187.43 152.03
V. Profit before tax 127.38 74.52
VI. Tax expense:
a) Income Tax 32.93 18.91
b) Tax pertaining to earlier years 1.36 -
c) Deferred Tax (0.88) 0.05
VII. Profit(Loss)for the period 93.97 55.56
VIII. Other Comprehensive Income
Other Comprehensive Income not to be reclassified to Statement of Profit
and Loss
in subsequent periods:
Re-measurement Gain / (Loss) on Defined Benefit Obligations (1.54) (1.28)
Income tax on above 0.39 0.32
Other Comprehensive Income/(Loss) for the year (1.15) (0.96)
IX. Total Comprehensive Income for the year 92.82 54.60
X. Earnings per equity share of Rs 2 each fully paid
Basic and diluted (In INR) 34 19.48 11.90

The accompanying notes are an integral part of the financial statements

For and on behalf of the Board This is the Statement of Profit and Loss referred to in our report of even date
For R.G.N. Price & Co.,
Chartered Accountants
FR No.002785S
Srinivasagopalan Rangarajan Rekha Murthy Rangarajan K Venkatakrishnan
Director Director Partner
DIN : 00643456 DIN : 00647472 M.No. 208591
Venkata Subramanian Venkatachalam Manvi Bhasin
Place: Chennai Chennai Chief Financial Officer Company Secretary
Date: 23rd May 2022 M No: 49883
 Data Patterns (India) Limited Annual Report 2021-22 58

Cash Flow Statement

(All figures are in INR Crores unless specifically stated otherwise)

Particulars For the year ended For the year ended

31st March 2022 31st March 2021
A. Cash Flow From Operating Activities
Net Profit before tax 127.38 74.52
Adjustments for :
Add : Depreciation 6.63 5.57
Add : Interest And Finance Charges 10.99 14.50
Less: Profit on sale of assets - (0.12)
Less: Interest Income (3.98) (2.22)
Operating Profit Before Working Capital Changes 141.02 92.24
Adjustments For Working Capital Movements :
(Increase)/Decrease in Inventories (46.02) 5.68
(Increase)/Decrease in Receivables (42.37) (40.30)
(Increase)/Decrease in Other Financial Assets (3.89) (0.49)
(Increase)/Decrease in Other Current Assets (1.57) (2.50)
Increase/(Decrease) in Trade Payables 26.15 (5.27)
Increase/(Decrease) in Other Financial Liabilities 18.06 (3.30)
Increase/(Decrease) in Other Current Liabilities (1.96) 2.17
Increase/(Decrease) in Non Current Liabilities (11.67) 13.04
Increase/(Decrease) in Provisions 0.87 1.08
Cash Generated From Operations 78.61 62.35
Direct Taxes Paid (28.36) (18.98)
Net Cash flow From Operating Activities (A) 50.25 43.38
B. Cash Flow From Investing Activities
Purchase Of Property, Plant and Equipment (PPE) including Capital work in Progress (38.20) (5.69)
Proceeds from sale of PPE - 0.72
Interest Income on Deposits 3.98 2.22
Margin Money Deposits (Placed)/Redeemed (83.61) 11.50
Net Cash flow From Investing Activities (B) (117.83) 8.76
C. Cash Flow From Financing Activities
Interest/Finance Charges on Borrowings (8.87) (14.50)
Proceeds From/(Repayment of )Long Term Borrowings (Net) (9.04) 9.22
Proceeds From/(Repayment of )Short Term Borrowings (Net) (17.42) (37.16)
Dividend Paid (11.10) (0.35)
Lease Liability payment (1.82) (2.08)
Proceeds from issue of equity shares through Initial public offer (IPO) (Refer Note no 43) 300.00 -
IPO issue expenses (Refer Note no 43) (15.89) -
Net Cash flow From Financing Activities (C) 235.86 (44.86)
Net Increase in Cash & Cash Equivalents (A+B+C) 168.28 7.29
Cash & Cash Equivalent At The Beginnining Of The Year (Refer Note 7) 8.80 1.51
Cash & Cash Equivalent At The End Of The Year (Refer Note 7) 177.08 8.80
Net Increase/(Decrease) in Cash & Cash Equivalents 168.28 7.29

The accompanying notes are an integral part of the financial statements

For and on behalf of the Board This is the Statement of Cash flow referred to in our report of even date
For R.G.N. Price & Co.,
Chartered Accountants
FR No.002785S
Srinivasagopalan Rangarajan Rekha Murthy Rangarajan K Venkatakrishnan
Director Director Partner
DIN : 00643456 DIN : 00647472 M.No. 208591
Venkata Subramanian Venkatachalam Manvi Bhasin
Place: Chennai Chennai Chief Financial Officer Company Secretary
Date: 23rd May 2022 M No: 49883
59 Corporate Overview Statutory Reports Financial Section

Statement of Changes in Equity

(All figures are in INR Crores unless specifically stated otherwise)
a) Equity Share Capital
Particulars Amount
Balance as at 01st April 2020 1.70
Changes due to prior period errors -
Restated balance as at 01st April 2020 1.70
Changes during the period -
Balance as at 31st March 2021 1.70

Particulars Amount
Balance as at 01st April 2021 1.70
Changes due to prior period errors -
Restated balance as at 01st April 2021 1.70
Issue of Bonus shares (Refer Note no 10) 7.65
Issue of shares through IPO (Refer Note no 43) 1.03
Balance as at 31st March 2022 10.38

b) Other Equity
Particulars Reserves and Surplus Items of Other
Comprehensive
Income
Capital Securities General Surplus in Remeasurement Total
Reserve Premium Reserve Statement of Defined Other
of Profit Benefit Plan Equity
and Loss
Balance as at 01st April 2020 0.30 33.49 9.16 109.07 (0.04) 151.98
Changes in accounting policy or prior period errors - - - - - -
Restated balance as at 01st April 2020 - - - - - -
Profit for the year - - - 55.56 - 55.56
Dividend paid - - - (0.35) - (0.35)
Remeasurement of Defined Benefit Plan (Net) for the - - - - (0.96) (0.96)
year
Balance as at 01st April 2021 0.30 33.49 9.16 164.28 (1.00) 206.23
Changes in accounting policy or prior period errors - - - - - -
Restated balance as at 01st April 2021 - - - - - -
Profit for the year - - - 93.97 - 93.97
Dividend paid - - - (11.10) - (11.10)
Remeasurement of Defined Benefit Plan (Net) for the - - - - (1.15) (1.15)
year
Issue of Bonus shares (Refer Note no 10) - - (7.65) - - (7.65)
Premium received on issue of equity shares through - 298.97 - - - 298.97
IPO (Refer Note no 43)
Issue expenses on IPO (Refer Note no 43) net of taxes - (15.14) - - - (15.14)
Balance as at 31st March 2022 0.30 317.32 1.51 247.15 (2.15) 564.13

The accompanying notes are an integral part of the financial statements

For and on behalf of the Board This is the Statement of changes in equity referred to in our report of even date
For R.G.N. Price & Co.,
Chartered Accountants
FR No.002785S
Srinivasagopalan Rangarajan Rekha Murthy Rangarajan K Venkatakrishnan
Director Director Partner
DIN : 00643456 DIN : 00647472 M.No. 208591
Venkata Subramanian Venkatachalam Manvi Bhasin
Place: Chennai Chennai Chief Financial Officer Company Secretary
Date: 23rd May 2022 M No: 49883
 Data Patterns (India) Limited Annual Report 2021-22 60

Notes to Financial Statement for the year ended 31st March, 2022
(All figures are in INR Crores unless specifically stated otherwise)

A. Company Overview:
Data Patterns (India) Limited (formerly known as Indus Teqsite Private Limited )“(The company”) is a manufacturer of electronic boards
and systems. The company was incorporated on 11th November 1998 with its registered office at Plot No.H9, Fourth main road, Sipcot
IT Park, Siruseri TN 603103.

1. Significant Accounting Policies

1.1 Approval of Financial statements:
The Ind AS financial statements have been approved for issue by the Board of Directors on 23rd May 2022

1.2 Basis of Preparation and Compliance:

The Financial Statements have been prepared and presented under the historical cost convention, on the accrual basis of
accounting except for certain financial assets and financial liabilities that are measured at fair values at the end of each reporting
period, as stated in the accounting policies set out below. The financial statements are prepared on a going concern basis using the
accrual concept except for the cash flow information. The accounting policies have been applied consistently over all the periods
presented in these financial statements.
Historical cost is generally based on fair value of the consideration given in exchange for goods and services.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market
participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation
technique. In estimating the fair value of an asset or a liability, the Company takes in to account the characteristics of the assets or
liability if market participants would take those characteristics into the account when pricing the asset or liability at the measurement
date.
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to
measure fair value, maximizing the use of relevant observable inputs and minimising the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value
hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole.
· Level 1 - Quoted (unadjusted) market prices in active markets for identical assets and liabilities
· Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or
indirectly observable
· Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable
For assets and liabilities that are recognized in the financial statements on a recurring basis, the Company determines whether
transfers have occurred between levels in the hierarchy by re-assessing categorization (based on the lowest level input that is
significant to the fair value measurement at a whole) at the end of each reporting period.
For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature,
characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

1.3 Functional and Presentation Currency:

These Financial Statements are presented in Indian Rupees (INR) which is the functional currency of the company and the currency
of the primary economic environment in which the company operates.

1.4 Current & non-current classification:

An asset or liability is classified as current if it satisfies any of the following conditions:
a) the asset/liability is expected to be realised/ settled in the Company’s normal operating cycle;
b) the asset is intended for sale or consumption;
c) the asset/liability is held primarily for the purpose of trading;
d) the asset/liability is expected to be realized/ settled within twelve months after the reporting period;
e) the asset is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve
months after the reporting period;
61 Corporate Overview Statutory Reports Financial Section

Notes to Financial Statement for the year ended 31st March, 2022
(All figures are in INR Crores unless specifically stated otherwise)

f) In the case of a liability, the Company does not have an unconditional right to defer settlement of the liability for at least twelve
months after the reporting period.
All other assets and liabilities are classified as non-current.
For the purpose of current/non-current classification of assets and liabilities, the Company has ascertained its normal operating
cycle as twelve months. This is based on the nature of services and the time between the acquisition of assets for processing and
their realization in cash and cash equivalents.
Deferred tax assets and liabilities are classified as non-current assets and liabilities.

1.5. Property, Plant and Equipment (PPE):

i. PPE are tangible items that:
a) are held for use in the supply of services or for administrative purposes and
b) are expected to be used during more than one period.
ii. The cost of an item of PPE is recognised as an asset if, and only if:
a) it is probable that future economic benefit associated with the item will flow to the entity; and
b) the cost of the items can be measured reliably.
iii. For transition to IndAS framework, the Company has elected to continue with the carrying value of all of its PPE recognised as
of April 1, 2018 (transition date) measured as per the previous IGAAP, as its deemed cost as on the transition date.
iv. PPE are stated at cost less accumulated depreciation and accumulated impairment loss if any. The initial cost of PPE comprises
its purchase price, including import duties and non-refundable purchase taxes, and any directly attributable costs of bringing
an asset to working condition and location for its intended use, including relevant borrowing costs and any expected costs
of decommissioning. Expenditure incurred after the PPE have been put into operation, such as repairs and maintenance, are
charged to the Statement of Profit and Loss in the period in which such costs are incurred. Any gain or loss on disposal of an
item of PPE is recognized in the statement of Profit and Loss.
If significant parts of an item of PPE have different useful lives, then they are accounted for as separate items (major components)
of PPE. Material items such as spare parts, stand-by equipment and service equipment are classified as PPE when they meet the
definition of PPE as specified in para no Ind AS 16 – Property, Plant and Equipment.
An item of tangible or intangible asset is de-recognised upon disposal or when no future economic benefits are expected to
arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item is determined as the
difference between the sale proceeds and the carrying amount of the asset , if any and is recognised in the Statement of Profit
and Loss.
Capital work in progress and Capital advance:
Cost of assets not ready for intended use, as on the Balance Sheet date, is shown as capital work in progress. Advance given
towards acquisition of PPE outstanding at each Balance Sheet date is disclosed as Other Non-Current Asset.
Depreciation:
Depreciation on each part of an item of PPE is provided using the Straight-Line Method based on the useful life of the asset
leaving a residual value not exceeding 5%, as provided in Schedule II of the Companies Act, 2013 and is charged to the
Statement of Profit and Loss.
Depreciation on addition is provided on a pro-rata basis from the month of installation / acquisition of an asset. Depreciation
on deductions/ disposals is provided on a pro-rata basis up to the month of deduction / disposal. Leasehold improvements are
amortized over the period of the lease.
The useful lives, residual values of each part of an item of PPE and the depreciation methods are reviewed at the end of each
financial year. If any of these expectations differ from previous estimates, such change is accounted for as a change in an
accounting estimate.

1.6. Non Current assets held for sale

The company classifies an item of PPE as a non current asset held for sale if its carrying amount will be recovered principally through
a sale transaction rather than through continuing use. Non current assets held for sale are measured at their carrying value / fair
value less cost to be incurred for its disposal. An item of non current asset held for sale is not subject to any depreciation during the
period it is held for sale.
 Data Patterns (India) Limited Annual Report 2021-22 62

Notes to Financial Statement for the year ended 31st March, 2022
(All figures are in INR Crores unless specifically stated otherwise)

1.7. Intangible assets

Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortization and
accumulated impairment loss if any. Amortization is recognised on a straight-line basis over their estimated useful lives. The
estimated useful lives are reviewed annually , and the effect of any change in the estimate is accounted for on a prospective
basis. Internally generated intangible assets are stated at cost that can be measured reliably during the development phase and
capitalized when it is probable that future economic benefits that are attributable to the assets will flow to the Company.
Intangible assets identified to have infinite economic useful lives are tested for an annual impairment exercise and any impairment
loss identified is recognized in the statement of profit and loss.

1.8. Impairment of non current Assets

At the end of each reporting period, the company reviews the carrying amounts of assets to determine whether there is any
indication that those assets have suffered an impairment loss. Assets that have an indefinite useful life, for example goodwill, are
not subject to amortization and are tested for impairment. An impairment loss is recognized whenever the carrying amount of an
asset or its cash generating unit (CGU) exceeds its recoverable amount. The recoverable amount of an asset is the greater of its fair
value less cost to sell and value in use. To calculate value in use, the estimated future cash flows are discounted to their present value
using a pre-tax discount rate that reflects current market rates and the risk specific to the asset. Fair value less cost to sell is the best
estimate of the amount obtainable from the sale of an asset in an arm’s length transaction between knowledgeable, willing parties,
less the cost of disposal.
Impairment losses, if any, are recognized in the Statement of Profit and Loss and included in depreciation and amortization expense.
Impairment losses are reversed in the Statement of Profit and Loss only to the extent that the asset’s carrying amount does not
exceed the carrying amount that would have been determined if no impairment loss had previously been recognized annually and
whenever there is an indication that the asset may be impaired.

1.9. Inventories:
Raw materials and other inventories are valued at lower of cost and net realizable value. However, materials and other items held
for use in production of inventories are not written down below cost if the finished goods in which they will be incorporated are
expected to be sold at or above cost.Net realizable value represents the estimated selling price of inventories less all estimated costs
of completion and costs necessary to make the sale.
The method of determination of cost of various categories of inventories is as follows:
a. Raw material, Stores and spares – Specific identification method.
b. Finished goods and Work-in-process – Cost of production which comprises of direct material costs, direct wages and applicable
overheads.
Cost of inventory comprises all costs of purchase, duties, taxes (other than those subsequently recoverable from tax authorities)
and all other costs incurred in bringing the inventory to their present location and condition. Cost of finished goods and work-in-
progress includes the cost of raw materials, packing materials, an appropriate share of fixed and variable production overheads and
other costs incurred in bringing the inventories to their present location and condition’.
Goods in transit are recognized at cost.

1.10.Financial instruments:
Financial assets:
a) Initial recognition:
Initial Recognition
All financial assets are initially recognized at fair value. Transaction costs that are directly attributable to the acquisition or issue
of financial assets, which are not at fair value through profit or loss, are adjusted to the fair value on initial recognition.
Subsequent Measurement
Financial Asset measured at Amortised Cost (AC)
A financial asset is measured at amortised cost if it is held within a business model whose objective is to hold the asset in order
to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that
are solely payments of principal and interest on the principal amount outstanding. After initial measurement, such financial
assets are subsequently measured at amortised cost using the effective interest rate (EIR) method.
63 Corporate Overview Statutory Reports Financial Section

Notes to Financial Statement for the year ended 31st March, 2022
(All figures are in INR Crores unless specifically stated otherwise)

Financial assets at fair value through other comprehensive income: (FVTOCI)

Financial assets are subsequently measured at fair value through other comprehensive income if these financial assets are held
within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and
the contractual terms of financial asset give rise on specified dates to cash flows that are solely payments of principal and the
interest on the principal outstanding.
Financial assets at Fair Value Through Profit or Loss: (FVTPL)
Any financial asset not subsequently measured at amortized cost or at fair value through other comprehensive income, is
subsequently measured at fair value through profit or loss. Financial assets falling in this category are measured at fair value
and all changes are recognized in the Statement of Profit and Loss.
b) Impairment of financial assets:
Financial assets, other than those recognized at FVTPL, are assessed for indicators of impairment at the end of each reporting
period. In case of trade receivables, the Company has adopted a modified approach, whereby possible loss on account of
customer defaults are determined on a case to case basis for provisioning at the balance sheet date.
De-recognition of financial assets:
The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire or it
transfers the ownership of the financial asset.
Financial liabilities:
a) Initial recognition:
All financial liabilities are initially recognised at the value of respective contractual obligations. Financial liabilities that
are not held-for-trading and are not designated as at FVTPL are measured at amortized cost at the end of subsequent
accounting periods. The carrying amounts of financial liabilities that are subsequently measured at amortized cost are
determined based on the effective interest method. Interest expense that is not capitalized as part of costs of an asset is
included in the ‘Finance costs’ line item.
b) Classification as debt or equity:
Debt and equity instruments issued by the Company are classified as either financial liabilities or as equity in accordance
with the substance of the contractual arrangements and the definition of a financial liability or an equity instrument.
c) Equity instruments:
An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its
liabilities. Equity instruments issued by a Company are recognised at the proceeds received, net of direct issue costs.
d) De-recognition:
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires.

1.11. Offsetting of Financial Instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet when the Company has a
legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis, or realize the asset and
settle the liability simultaneously.

1.12. Revenue Recognition:

Revenue from Contract with Customers
Revenue recognition underlines the value of goods or services transferred to a customer that reflects the consideration
commensurate with the value of goods and services so exchanged.
Sale of Goods
Revenue from contracts with customers is recognised when control of the goods are transferred to the customer at an amount
that reflects the consideration entitled in exchange for those goods Generally, control is transferred upon shipment of goods to
the customer or when the goods are made available to the customer, provided transfer of title to the customer occurs and the
Company has not retained any significant risks of ownership or future obligations with respect to the goods shipped.
The revenue is measured based on the transaction price, which is the consideration, adjusted for discounts if any, as specified in the
contract with the customer. Revenue is disclosed net of taxes collected from customers.
 Data Patterns (India) Limited Annual Report 2021-22 64

Notes to Financial Statement for the year ended 31st March, 2022
(All figures are in INR Crores unless specifically stated otherwise)

Sale of Services
The company recognizes revenue when performance obligation as promised is satisfied with a transaction price and where there is
no uncertainty as to the measurement or collectability of the consideration. Revenue from sale of services is recognized when the
related obligations are fulfilled.
Other Income
Dividend
Dividend income from investments is recognized when the right to receive the same is established.
Interest Income
Interest income from a financial asset is recognized when it is probable that the economic benefits will flow to the company and the
amount of income can be measured reliably. Interest income is accrued on a time proportion basis, taking into account the amount
outstanding and effective interest rate.

1.13. Employee Benefits:

(a) Short term employee benefits:
Un-discounted short-term employee benefits expected to be paid in exchange for the services rendered by the employees
are recognised as expense during the period when the employees render service. Corresponding liabilities are presented as
Current Employee Benefit Obligations in the balance Sheet.
(b) Post-employment benefits:
(i) Defined Contribution Plans: Contribution to Defined Contribution Schemes towards retirement benefits in the form of
Provident fund is recognised as expense in the Statement of Profit and Loss during the period in which the employee
renders related service.
(ii) Defined Benefit Plans:
Annual contributions are made to the approved Gratuity Funds as permitted by Indian Law. The liability for future gratuity
benefits is accounted for based on actuarial valuation, as at the balance sheet date, determined every year using the
Projected Unit Credit method.
Re-measurements comprising of actuarial gains / losses the effect of the asset ceiling, excluding amounts included in net
interest on the net defined benefit liability and the return on plan assets (excluding amounts included in net interest on
the net defined benefit liability), are immediately recognised in the balance sheet with a corresponding debit or Credit in
to retained earnings through other comprehensive income in the period in which they occur.
The following components of the net defined benefit obligation are recognized as an expense in the statement of profit
and loss:
- Service costs comprising current service costs, past-service costs and
- Net interest expense or income.
(c) Other Long-term Employee Benefits:
Entitlement to privilege leave is recognised when it accrues to the employees. Privilege leave can be accumulated subject
to restriction as mentioned in the leave policy. The Company determines the liability for such accumulated leave using the
Projected Unit Credit Method with actuarial valuation being carried out at each Balance Sheet date.

1.14. Borrowing Costs:

Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds. Borrowing
cost also includes exchange differences to the extent regarded as an adjustment to the borrowing costs. Borrowing costs directly
attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get
ready for its intended use or sale are capitalised as part of the cost of the asset. Capitalisation of Borrowing Costs is suspended and
charged to the statement of profit and loss during extended periods when active development activity on the qualifying assets is
interrupted. All other borrowing costs are expensed in the period they occur.
65 Corporate Overview Statutory Reports Financial Section

Notes to Financial Statement for the year ended 31st March, 2022
(All figures are in INR Crores unless specifically stated otherwise)

1.15. Foreign Currency Transactions:

a) Initial Recognition:
On initial recognition, transactions in foreign currencies entered into by the Company are recorded in the functional currency
(i.e. Indian Rupees), by applying to the foreign currency amount, the spot exchange rate. Exchange differences arising on
foreign exchange transactions settled during the year are recognized in the Statement of Profit and Loss.
b) Measurement of foreign currency items at the reporting date:
Foreign currency monetary items of the Company are translated at the closing exchange rates. Non-monetary items that are
measured at historical cost in a foreign currency are translated using the exchange rate at the date of the transaction.
c) Recognition of exchange difference:
Exchange differences on monetary items are recognized in profit or loss in the period in which they arise except for exchange
differences on transactions entered into in order to hedge certain foreign currency risks, which are recognised in Other
comprehensive income and later to statement of profit and loss.

1.16. Provisions and Contingent Liabilities:

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable
that the Company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The
amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of
the reporting period, taking into account the risks and uncertainties surrounding the obligation.
When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present
value of those cash flows (when the effect of the time value of money is material). When some or all of the economic benefits
required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually
certain that reimbursement will be received and the amount of the receivable can be measured reliably.
Contingent liability is disclosed in case of:
a) a present obligation arising from past events, when it is not probable that an outflow of resources will be required to settle the
obligation; and
b) a present obligation arising from past events, when no reliable estimate is possible.
c) a possible obligation arising from past events, unless the possibility of out flow of resources is remote.
Contingent assets are neither recognised nor disclosed except when realisation of income is virtually certain, related asset is
recognised. Provisions, contingent liabilities and contingent assets are reviewed at each Balance Sheet date.

1.17. Leases:
The Company assesses at contract inception whether a contract is, or contains, a lease, if the contract conveys the right to control
the use of an identified asset for a period of time in exchange for consideration.
a) Company as lessee:
The Company applies a single recognition and measurement approach for all leases, except for short-term leases and leases of
low value assets. The Company recognizes lease liabilities to make lease payments and right-of-use assets (ROU) representing
the right to use the underlying assets, during the lease period.

b) Right-of-use assets:
The Company recognizes right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is
available for use). Right-of-use asset is measured at the fair value of future lease payments discounted by the incremental cost
of borrowing less any accumulated depreciation and impairment losses. The corresponding lease liability carried is adjusted
for any re-measurement as at the date of the Balance sheet. A Right-of-use asset is depreciated on a straight-line basis over the
shorter of the lease term and the estimated useful lives of the assets. The right-of-use asset is also subject to impairment.
c) Lease Liabilities:
At the commencement date of the lease, the Company recognises lease liabilities measured at the present value of lease
payments to be made over the lease term. In calculating the present value of lease payments, the Company uses its
incremental borrowing rate. After the commencement date, the amount of lease liabilities is increased to reflect the accretion
of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there
 Data Patterns (India) Limited Annual Report 2021-22 66

Notes to Financial Statement for the year ended 31st March, 2022
(All figures are in INR Crores unless specifically stated otherwise)

is a modification, a change in the lease term, a change in the lease payments or a change in the assessment of an option to
purchase the underlying asset. Lease liabilities and Right -of-use assets have been presented appropriately in the balance
sheet.
d) Short-term leases and leases of low-value assets:
The Company applies the short-term lease recognition exemption to its short-term leases of Land and Buildings (i.e., those
leases that have a lease term of 12 months or less from the commencement date). Lease payments on short term leases are
recognized as expense as and when incurred.
e) Company as Lessor:
Leases in which the Company does not transfer substantially all the risks and rewards incidental to ownership of an asset are
classified as operating leases. Rental income arising is accounted for on a straight-line basis over the lease terms.

1.18. Taxes on Income:

Taxes on income comprise of current and deferred taxes.
a) Current tax
Current tax is the amount of income taxes payable in respect of taxable profit for the period. Current tax is measured using tax
rates and tax laws enacted during the reporting period together with any adjustment to taxes payable in respect of previous
years.
b) Deferred tax
Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the financial
statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally
recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary
differences to the extent that it is probable that taxable profits will be available against which those deductible temporary
differences and tax losses can be utilized. Such deferred tax assets and liabilities are not recognized if the temporary difference
arises from the initial recognition (other than in a business combination) of assets and liabilities in a transaction that affects
neither the taxable profit nor the accounting profit. Deferred tax assets include unused tax credits.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is
no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax
liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the
asset realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting
period. Deferred tax relating to items recognised outside the Statement of Profit and Loss is recognised outside Statement of
Profit and Loss (either in other comprehensive income or in equity). Deferred tax items are recognised in correlation to the
underlying transaction either in Other Comprehensive Income or directly in equity.
c) Current and deferred tax for the year
Current and deferred tax are recognized in profit or loss, except when they relate to items that are recognized in other
comprehensive income or directly in equity, in which case, the current and deferred tax are also recognized in other
comprehensive income or directly in equity respectively

1.19. Events after reporting date

Where events occurring after the Balance Sheet date provide evidence of conditions that existed at the end of the reporting period,
the impact of such events is adjusted within the financial statements. Otherwise, events after the Balance Sheet date of material size
or nature are only disclosed.

1.20. Segment Reporting:

Operating segments are those components of the business whose operating results are regularly reviewed by the chief operating
decision maker (CODM) in the Company to make decisions for performance assessment and resource allocation. Accordingly, the
company has identified the manufacture and sale of goods and services in defence electronics as the only segment in which the
company operates.
67 Corporate Overview Statutory Reports Financial Section

Notes to Financial Statement for the year ended 31st March, 2022
(All figures are in INR Crores unless specifically stated otherwise)

1.21. Earnings per Share (EPS):

Basic earnings per share is calculated by dividing the net profit after tax for the year attributable to the equity shareholders of the
Company by weighted average number of equities shares issued during the period. Diluted EPS is determined by adjusting the
profit or loss attributable to equity shareholders and the weighted average number of equity shares outstanding for the effects of
all dilutive potential equity shares.

1.22. Cash Flow Statement:

Cash flows are reported using the indirect method, whereby profit / (loss) before tax is adjusted for the effects of transactions of
non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing
and financing activities of the Company are based on classification made in a manner considered most appropriate to Company’s
business.

1.23. Use of estimates:

The preparation of financial statements in conformity with IndAS requires management to make judgments, estimates and
assumptions that affect the application of the accounting policies and the reported amounts of assets and liabilities, the disclosure
of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses
during the year. Actual results could differ from those estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. The effect of change in an accounting estimate is
recognized prospectively by including it in profit or loss in (a) the period of the change if the change affects only that period; or (b)
the period of the change and future periods, if the change affects both.
However, the change in an accounting estimate that gives rise to changes in assets and liabilitiesis recognized by adjusting the
carrying amount of the related asset, liability in the period of the change.
Key estimates and judgements
Key assumption concerning the future and other key sources of estimation uncertainty at the end of the reporting period that may
have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year
is as given below.
a. Useful life of Property, Plant and Equipments
The Company reviews the estimated useful lives of Property, plant and equipment at the end of each reporting period. During
the current year, there has been no change in useful life considered for the assets.
b. Actuarial valuation
The determination of Company’s liability towards defined benefit obligation to employees is made through independent
actuarial valuation including determination of amounts to be recognised in the Statement of Profit and Loss and in Other
Comprehensive Income. Such valuation depend upon assumptions determined after taking into account inflation, seniority,
promotion and other relevant factors such as supply and demand factors in the employment market. Information about such
valuation is provided in the Notes to the financial statements.
c. Claims, Provisions and Contingent Liabilities
The Company has ongoing litigations with income tax and regulatory authorities. Where an outflow of funds is believed to be
probable and a reliable estimate of the outcome of the dispute can be made based on management’s assessment of specific
circumstances of each dispute and relevant external advice, management provides for its best estimate of the liability. Such
issues are by nature complex and can take number of years to resolve and can involve estimation uncertainty. Information
about such litigations is provided in the Notes to the financial statements.
d. Impairment of Financial assets
The impairment provisions for Financial Assets are based on assumptions about risk of default and expected cash loss rates.
The Company uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on
Company’s past history, existing market conditions as well as forward looking estimates at the end of each reporting period.
Notes to Financial Statement for the year ended 31st March, 2022
(All figures are in INR Crores unless specifically stated otherwise)

NOTE NO 2
Particulars Property Plant and Equipment Intangible
Assets
Leasehold Buildings Plant & Air Computer Electrical Furniture Office Vehicles Total Software
Land Machinery Conditioning Fixtures & Fittings Equipments
Systems
Gross Block
As at April 1 2020 1.31 10.69 14.13 1.23 0.46 0.57 0.77 0.43 1.15 30.75 0.23
Additions - - 1.24 0.03 3.64 0.13 0.02 0.14 - 5.20 0.49
Deletions (0.60) - - - - - - - - (0.60) -
As at March 31 2021 0.71 10.69 15.38 1.26 4.11 0.70 0.79 0.57 1.15 35.35 0.73
As at April 1 2021 0.71 10.69 15.38 1.26 4.11 0.70 0.79 0.57 1.15 35.35 0.73
Additions - 0.11 14.52 0.07 2.87 0.02 0.11 0.87 1.34 19.90 1.00
Deletions - - - - - - - - - - -
As at March 31 2022 0.71 10.80 29.89 1.33 6.98 0.72 0.90 1.44 2.49 55.25 1.72
Accumulated Depreciation / Amortization
As at April 1 2020 0.02 0.51 1.60 0.23 0.10 0.07 0.09 0.09 0.22 2.93 0.07
Additions 0.01 0.51 1.61 0.23 0.46 0.07 0.09 0.10 0.13 3.20 0.09
Deletions - -
As at March 31 2021 0.03 1.02 3.21 0.46 0.56 0.14 0.18 0.19 0.35 6.14 0.16
As at April 1 2021 0.03 1.02 3.21 0.46 0.56 0.14 0.18 0.19 0.35 6.14 0.16
Additions 0.01 0.51 1.99 0.23 1.67 0.08 0.09 0.13 0.23 4.94 0.21
Deletions - -
As at March 31 2022 0.04 1.53 5.20 0.69 2.23 0.21 0.28 0.32 0.58 11.08 0.37
Net Carrying Value as on 31 March 2022 0.67 9.27 24.69 0.64 4.74 0.51 0.64 1.14 1.90 44.16 1.35
Net Carrying Value as on 31 March 2021 0.68 9.67 12.16 0.80 3.55 0.56 0.61 0.38 0.80 29.21 0.56
Assets pledged as security
Fixed assets of the company carry pari-passu charge in favour of the multiple bankers, as security for working capital and term loan facilities availed.
Capital-Work-in Progress (CWIP) Aging Schedule

CWIP Amount in CWIP for a period of As at 31st

Data Patterns (India) Limited Annual Report 2021-22

Less than 1 1-2 years 2-3 years More than 3 March 2022
year years
Projects in progress 17.30 - - - 17.30
68
69 Corporate Overview Statutory Reports Financial Section

Notes to Financial Statement for the year ended 31st March, 2022
(All figures are in INR Crores unless specifically stated otherwise)

Note 3 - Right of Use Assets

Particulars Buildings Furniture Vehicles Total
Gross Block
As at April 1 2020 6.98 0.28 0.80 8.06
Additions - - 0.10 0.10
Deletions (1.58) - (0.16) -1.74
As at March 31 2021 5.40 0.28 0.74 6.42
As at April 1 2021 5.40 0.28 0.74 6.42
Additions - - - -
Deletions - - - -
As at March 31 2022 5.40 0.28 0.74 6.42
Accumulated Amortization
As at April 1, 2020 2.07 0.07 0.31 2.45
For the Year 1.90 0.07 0.30 2.27
Deletions (1.58) - (0.16) (1.74)
As at March 31, 2021 2.39 0.13 0.45 2.98
As at April 1, 2021 2.39 0.13 0.45 2.98
For the Year 1.22 0.07 0.18 1.47
Deletions - - - -
As at March 31, 2022 3.61 0.20 0.63 4.45
Net Carrying Value as on 31 March 2022 1.79 0.08 0.11 1.97
Net Carrying Value as on 31 March 2021 3.01 0.15 0.29 3.44

NOTE NO 4 OTHER FINANCIAL ASSETS

(At Amortized Cost)

Particulars As at As at
31st March 2022 31st March 2021
Security Deposits 1.52 1.41
Margin Money Deposits held with banks 116.27 32.66
Total 117.79 34.07
Margin money deposits represent security held by bank for the bank guarantees of Rs. 150.21 crores (March 31, 2021: Rs. 131.59 crores )
issued by the bankers on behalf of the Company

NOTE NO 5 INVENTORY
Particulars As at As at
31st March 2022 31st March 2021
Raw Materials 82.97 42.48
Work-in-progress 20.24 17.18
Finished goods 16.55 14.08
Total 119.77 73.74

NOTE NO 6 TRADE RECEIVABLES

Particulars As at As at
31st March 2022 31st March 2021
Unsecured:
Considered Good 198.31 155.94
Total 198.31 155.94
There are no trade or other receivable are due from directors or other officers of the Company either severally or jointly with any other
person. nor any trade or other receivable are due from firms or private companies respectively in which any director is a partner, a
director or a member
Refer Note 46(A) for disclosure related to aging of Trade receivables
 Data Patterns (India) Limited Annual Report 2021-22 70

Notes to Financial Statement for the year ended 31st March, 2022
(All figures are in INR Crores unless specifically stated otherwise)

NOTE NO 7 CASH & CASH EQUIVALENTS

Particulars As at As at
31st March 2022 31st March 2021
Balance with Banks
- In Current Account and EEFC accounts 6.78 8.79
- In monitoring agency account # 4.88 -
- IPO expenses account* 15.40 -
Deposits with monitoring agency for amount received for IPO with original maturity of
150.00 -
less than 3 months #
Cash in Hand 0.02 0.01
* The balance is earmarked towards payment of IPO expenses (Refer Note no 43)
# The amount represents unutilized IPO proceeds (Refer Note no 43)
Total 177.08 8.80

NOTE NO 8 OTHER FINANCIAL ASSETS

(At Amortized Cost)

Particulars As at As at
31st March 2022 31st March 2021
Security Deposits 2.94 0.15
Advances to Employees 0.40 0.44
Interest accrued but not due 5.53 3.60
Other advances - 0.18
Other Receivables - 0.72
Total 8.86 5.09

NOTE NO 9 OTHER NON CURRENT ASSETS

Particulars As at As at
31st March 2022 31st March 2021
Capital Advances 3.49 -
Total 3.49 -

Particulars As at As at
31st March 2022 31st March 2021
Balance With Government Authorities 2.46 4.00
Prepaid Expenses 4.40 7.00
Advance to Suppliers 8.96 6.75
Total 15.83 17.75
71 Corporate Overview Statutory Reports Financial Section

Notes to Financial Statement for the year ended 31st March, 2022
(All figures are in INR Crores unless specifically stated otherwise)

NOTE NO 10 EQUITY SHARE CAPITAL

10(a) Details of Share Capital outstanding at the beginning and end of reporting period

Particulars As at As at
31st March 2022 31st March 2021
Authorised
7,87,50,000 Equity shares of Rs.2 each (Previous year- 20,00,000 Equity shares of Rs.10
15.75 2.00
each)
5,75,000 9% Redeemable Optionally Convertible Cumulative Preference Shares of Rs
- 5.75
100 each
15.75 7.75
Issued, Subscribed and Fully Paid up
5,18,86,650 Equity shares of Rs.2 each (Previous year- 16,99,790 Equity shares of Rs.10
10.38 1.70
each)
10.38 1.70
10(b) - Reconciliation of number of equity shares and amount outstanding at the beginning and at the end of the reporting period

Particulars As at As at
31st March 2022 31st March 2021
Number of shares outstanding at the beginning of the period 16,99,790 16,99,790
Add: Issue of shares on account of sub division of nominal value of equity shares from
67,99,160 -
Rs 10 per share to Rs 2 per share
Add: Issue of bonus shares 3,82,45,275 -
Add: Issue of shares through IPO -Refer Note no 43 51,42,425 -
Number of shares outstanding at the end of the period 5,18,86,650 16,99,790
The Company has one class of equity shares having a par value of Rs.2 per share. Each shareholder is eligible for one vote per share held.
The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting,
except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the
Company after distribution of all preferential amounts, in proportion to their shareholding.

Sub division of nominal value of equity shares:

The shareholders of the company vide its Annual General meeting held on 12th August 2021 have approved the Sub Division of nominal
value of equity shares with Face value of Rs 10 each to Face value of Rs 2 each. Pursuant to the above resolution, the existing no of equity
shares of 16,99,790 with nominal value of Rs 10 each sub-divided to 84,98,950 shares with nominal value of Rs 2 each.

Bonus issue of equity shares:

“*The shareholders of the company vide its Annual General meeting held on 12th August 2021 have approved the Issue of Bonus shares
in the ratio of 1:4 (i.e 4 fully paid up equity share for every 1 equity share held)
The shareholders of the company vide its extra ordinary general meeting held on 03rd September 2021 have approved the Issue of
Bonus shares in the ratio of 10:1 (i.e 1 fully paid up equity share for every 10 equity share held)”
Pursuant to the above resolutions, the Company issued and alloted 3,82,45,275 bonus equity shares of 2/-each to its shareholders by
capitalising General reserves amounting to Rs 7.65 crores.
The shareholders of the company vide its extra ordinary general meeting held on 03rd September 2021 have approved the issue of
Bonus shares in the ratio of 10:1 (i.e 1 fully paid up equity share for every 10 equity share held)
 Data Patterns (India) Limited Annual Report 2021-22 72

Notes to Financial Statement for the year ended 31st March, 2022
(All figures are in INR Crores unless specifically stated otherwise)

10(c) - Details of shareholding more than 5% held as at reporting date

Particulars As at 31st March 2022

No of shares %
Mr. S. Rangarajan 1,27,65,315 24.60%
Mrs. Rekha Rangarajan 1,05,78,323 20.39%
Florintree Capital Partners LLP 59,96,622 11.56%

Particulars As at 31st March 2021

No of shares %
Mr. S. Rangarajan 5,73,966 33.77%
Mrs. Rekha Rangarajan 3,79,703 29.59%
Oman India Joint Investment Fund 3,33,887 19.64%
10(d) Shareholding of Promoters
No of shares
Promoter name As at As at
31st March 2022 31st March 2021
Mr. S. Rangarajan 1,27,65,315 5,73,966
Mrs. Rekha Rangarajan 1,05,78,323 3,79,703

% to Total no of shares
Promoter name As at As at
31st March 2022 31st March 2021
Mr. S. Rangarajan 24.60% 33.77%
Mrs. Rekha Rangarajan 20.39% 29.59%
Note on % of Change during the period:
During the year ended 31st March 2022, shareholding of Mr S Rangarajan and Mrs Rekha Rangarajan has come down by 9.17% and
9.20% respectively due to transfer of shares and shares offered under Offer for sale during IPO.

NOTE NO 11 OTHER EQUITY

Particulars As at As at
31st March 2022 31st March 2021
Capital Reserve
Opening Balance 0.30 0.30
Additions during the year - -
Deletions during the year - -
Closing Balance 0.30 0.30
Securities Premium:
Opening Balance 33.49 33.49
Add: Premium received on issue of equity shares through IPO (Refer Note no 43) 298.97 -
Less: Issue expenses on IPO (Refer Note no 43) net of taxes* (15.14) -
Closing Balance 317.32 33.49
*The Company has exercised the option to adjust the share issue expenses with the
balance available in Securities premium account as per Section 52 of the Companies
act 2013
General Reserve:
Opening Balance 9.16 9.16
Additions during the year -
Less: Utilization towards issue of bonus shares (Refer Note no 10) (7.65) -
Closing Balance 1.51 9.16
73 Corporate Overview Statutory Reports Financial Section

Notes to Financial Statement for the year ended 31st March, 2022
(All figures are in INR Crores unless specifically stated otherwise)

Particulars As at As at
31st March 2022 31st March 2021
Surplus in Statement of Profit and Loss
Opening Balance 164.28 109.07
Add: Profit after Tax 93.97 55.56
Less: Dividend paid (11.10) (0.35)
Closing Balance 247.15 164.28
Other Comprehensive Income:
Opening Balance (1.00) (0.04)
Additions during the year (1.15) (0.96)
Deletions during the year - -
Closing Balance (2.15) (1.00)
Total 564.13 206.23
Nature and purpose of reserves
Capital Reserve: The above capital reserve represents the difference between the net assets acquired and the carrying value of investment
in the wholly owned subsidiary on merger.
General Reserve: Represents appropriation from one component of equity to another, not being an item of Other Comprehensive
Income.
Securities Premium: Represents the premium on issue of equity shares.
Surplus in Statement of Profit and Loss: Represents retained earnings to the extent not appropriated to the general reserve or distributed
otherwise.
Items of Other Comprehensive Income
i) Re-measurement of Net Defined Benefit Plan: Differences between the interest income on plan assets and the return actually achieved,
and any changes in the liabilities over the year due to changes in actuarial assumptions or experience adjustments within the plans, are
recognised in other comprehensive income.

NOTE NO 12 BORROWINGS
Particulars As at As at
31st March 2022 31st March 2021
Secured
From Banks 0.48 9.37
From Others 0.24 0.40
Total 0.73 9.77
Term loan from State Bank of India (SBI)
State Bank of India has sanctioned Guaranteed Emergency Credit Line (GECL) of Rs 5.04 crores to the company during March 2021.The
loan is secured by a pari-passu charge over the primary and collateral securities along with other lenders under the Multiple Banking
Arrangement. The Loan is repayable in 36 monthly installments after 12 months of moratorium and interest rate for the loan is 0.75%
above the EBLR, maximum interest rate being 9.25%. Effective rate at the time sanctioning the loan is 7.40%. The loan was repaid entirely
during the Fnancial year 2021-22
Term loan from Housing Development Finance Corporation (HDFC) Bank
HDFC sanctioned a term loan of Rs. 36 crores during the Financial year 2020-21. The loan was repayable in 5 years with an initial fixed
assets of the Company with the other banks as primary security and pari-passu charge on the land and building at H-9. SIPCOT IT Park,
Siruseri, Chennai – 603103, personal guarantee of the directors.The company had drawn upto Rs 11 crores out of the sanctioned limit.
The loan was repaid entirely during the Financial year 2021-22
 Data Patterns (India) Limited Annual Report 2021-22 74

Notes to Financial Statement for the year ended 31st March, 2022
(All figures are in INR Crores unless specifically stated otherwise)

Auto Premium Term Loan from HDFC Bank

HDFC sanctioned a auto premium term loan of Rs. 0.99 crore during the Financial year 2021 22. The loan is repayable in 39 monthly
installments.Interest rate for the loan is 7.20%.The term loan is secured by exclusive charge on the vehicle purchased by the company
as mentioned in the loan schedule.
The company does not have any borrowings from banks and financial institutions which have not been used for the specific purpose
for which it was taken as at March 31, 2022.

NOTE NO 13 LEASE LIABILITIES

Particulars As at As at
31st March 2022 31st March 2021
Non Current 1.11 2.43
Total 1.11 2.43

Particulars As at As at
31st March 2022 31st March 2021
Current 1.32 1.51
Total 1.32 1.51

NOTE NO 14 NON CURRENT PROVISIONS

Particulars As at As at
31st March 2022 31st March 2021
Provision for Gratuity 9.40 7.59
Provision for Compensated absences 1.76 0.93
Total 11.16 8.52

NOTE NO 15 DEFERRED TAX LIABILITY/ (ASSET)

Particulars As at As at
31st March 2022 31st March 2021
A. Deferred Tax Liabilities:
Property Plant and Equipment 2.92 2.64
Right of Use Assets 0.50 0.87
Total Deferred Tax Liabilities (A) 3.41 3.51
B. Deferred Tax Assets:
Expenditure allowable only on payment basis 2.80 1.65
Lease Liabilities 0.61 0.99
Share Issue expenses 0.75 -
Total Deferred Tax Assets (B) 4.17 2.65
Deferred Tax Liability /(Asset) / (Net) (A-B) (0.76) 0.87

Particulars As at As at
31st March 2022 31st March 2021
Opening Balance 0.87 0.82
Recognized in Profit and loss statement (0.88) 0.05
Recognized in Other comprehensive Income -
Recognized in Equity (0.75)
Closing Balance (0.76) 0.87
75 Corporate Overview Statutory Reports Financial Section

Notes to Financial Statement for the year ended 31st March, 2022
(All figures are in INR Crores unless specifically stated otherwise)

NOTE NO 16 NON CURRENT LIABILITIES

Particulars As at As at
31st March 2022 31st March 2021
Contract Liabilities 15.70 27.37
Total 15.70 27.37

NOTE NO 17 BORROWINGS
Particulars As at As at
31st March 2022 31st March 2021
Secured Loans repayable on demand from Banks
(i) Cash credit/ working capital demand loans 5.62 21.30
Unsecured Loans
From Banks - 0.29
From Directors - 0.51
From Others - 0.58
Current Maturities of Long term Debts 0.42 0.78
Total 6.04 23.46
Working capital facility represents facilities availed from Banks secured by charge on book debts and inventory and first charge on
entire assets of the company both present and future. The credit facility is also personally guaranteed by two promoter directors of the
company

NOTE NO 18 TRADE PAYABLES

Particulars As at As at
31st March 2022 31st March 2021
Trade Payables
- Total outstanding dues of Micro and Small Enterprises 3.72 0.24
- Total outstanding dues of creditors other than Micro and Small Enterprises 34.43 11.76
Total 38.15 12.00
The Company has certain dues to Suppliers registered under Micro, Small and Medium Enterprises Development Act 2006 (MSMED
Act).
The information required to be disclosed under Micro Small & Medium Enterprises Development Act, 2006 (The MSMED Act) has been
determined to the extent such parties have been identified on the basis of information received from such parties and available with
the Company.
The disclosure pursuant to said MSMED Act are as follows :

Particulars As at As at
31st March 2022 31st March 2021
(i) The amounts remaining unpaid to suppliers as at the end of the year
Principal 3.72 0.24
Interest - -
(ii) The amount of interest paid to the buyer in terms of Section 16 of the MSMED Act
- 0.12
2006
The amount of the payments made to suppliers beyond the appointed day during
- -
each accounting year
(iii) The amount of interest due and payable for the period of delay in making
payment (which have been paid but beyond the appointed day during the year) - -
but without adding the interest specified under MSMED Act 2006.
 Data Patterns (India) Limited Annual Report 2021-22 76

Notes to Financial Statement for the year ended 31st March, 2022
(All figures are in INR Crores unless specifically stated otherwise)

Particulars As at As at
31st March 2022 31st March 2021
(iv) The amount of interest accrued and remaining unpaid at the end of each
- -
accounting year.
(v) The amount of further interest remaining due and payable even in the succeeding
years until such dates when the interest due above are actually paid to the small
- -
enterprise, for the purpose of disallowance as a deductible expenditure under
Section 23 of the MSMED Act, 2006
Refer Note 46(B) for disclosure related to aging of Trade payables

NOTE NO 19 OTHER FINANCIAL LIABILITIES

Particulars As at As at
31st March 2022 31st March 2021
Payable to employees 3.93 3.33
Expenses Payable 0.79 0.68
Payable towards share issue expenses 13.93 -
Capital Creditors 3.42 -
Total 22.07 4.01

NOTE NO 20 OTHER CURRENT LIABILITIES

Particulars As at As at
31st March 2022 31st March 2021
Contract Liabilities 20.84 19.13
Statutory Dues 1.84 5.51
Total 22.68 24.64

NOTE NO 21 CURRENT PROVISIONS

Particulars As at As at
31st March 2022 31st March 2021
Provision for Gratuity 0.50 0.59
Provision for Compensated absences 0.22 0.13
Provision for Corporate social responsibility - 0.24
Total 0.72 0.96

NOTE NO 22 CURRENT TAX LIABILITIES

Particulars As at As at
31st March 2022 31st March 2021
Provision for Income tax (Net off Advance tax and TDS) 12.48 5.13
Total 12.48 5.13
77 Corporate Overview Statutory Reports Financial Section

Notes to Financial Statement for the year ended 31st March, 2022
(All figures are in INR Crores unless specifically stated otherwise)

NOTE NO 23 REVENUE FROM CONTRACT WITH CUSTOMERS

Particulars For the Year ended For the Year ended
31st March 2022 31st March 2021
Sale of products 285.02 196.16
Sale of Services 25.83 27.79
Total 310.85 223.95

NOTE NO 24 OTHER INCOME

Particulars For the Year ended For the Year ended
31st March 2022 31st March 2021
Interest Income from Banks deposits 3.92 2.17
Interest Income from Other deposits 0.04 0.05
Foreign Exchange Gain (Net) - 0.26
Reversal of excess amortization on leasehold land - 0.12
Total 3.96 2.60

NOTE NO 25 COST OF MATERIALS CONSUMED

Particulars For the Year ended For the Year ended
31st March 2022 31st March 2021
Opening Stock of Raw materials 42.48 40.72
Add: Purchases 132.09 64.73
Less: Closing Stock of Raw materials 82.97 42.48
Consumption of Raw Materials 91.59 62.97

NOTE NO 26 CHANGES IN INVENTORIES OF FINISHED GOODS, WORK IN PROGRESS AND STOCK-IN-

TRADE
Particulars For the Year ended For the Year ended
31st March 2022 31st March 2021
A.Increase/(Decrease)in Inventories
A. Opening Stock
Work-in-progress 17.18 15.77
Finished Stocks 14.08 22.93
31.27 38.70
B. Closing Stock
Work-in-progress 20.24 17.18
Finished Stocks 16.55 14.08
36.79 31.26
Change in Stock (A -B) (5.52) 7.44
Changes in inventories of finished goods, work in progress and Stock-in- trade (5.52) 7.44
 Data Patterns (India) Limited Annual Report 2021-22 78

Notes to Financial Statement for the year ended 31st March, 2022
(All figures are in INR Crores unless specifically stated otherwise)

NOTE NO 27 EMPLOYEE BENEFIT EXPENSE

Particulars For the Year ended For the Year ended
31st March 2022 31st March 2021
Salaries and wages 54.05 41.91
Directors' Remuneration 1.92 1.26
Company's Contribution to Provident and other funds 3.88 2.90
Staff welfare expenses 2.50 2.35
Total 62.35 48.42
Refer Note no 39 with respect to related party disclosures for payment to Key managerial personnel

NOTE NO 28 FINANCE COST

Particulars For the Year ended For the Year ended
31st March 2022 31st March 2021
Interest on Borrowings 3.69 8.61
Other Borrowing cost 5.18 5.14
Interest on Lease Liability 0.30 0.45
Interest on Income tax 1.82 0.30
Total 10.99 14.50

NOTE NO 29 DEPRECIATION / AMORTIZATION

Particulars For the Year ended For the Year ended
31st March 2022 31st March 2021
Depreciation on PPE / Amortization of Intangible assets 5.16 3.30
Amortization of Right of Use Assets 1.47 2.27
Total 6.63 5.57

NOTE NO 30 OTHER EXPENSES

Particulars For the Year ended For the Year ended
31st March 2022 31st March 2021
Power and Fuel 2.51 2.37
Rent 0.20 0.39
Repairs and Maintenance 1.41 1.77
Rates and Taxes 0.91 0.79
Insurance 0.41 0.33
Travelling Expenses 2.32 1.44
Printing and Stationery 0.33 0.20
Communication Expenses 0.28 0.28
Freight, Packing and Forwarding 0.36 0.17
Subscription 0.01 0.01
Housekeeping and security charges 1.03 0.77
Legal and Professional Expenses 5.22 2.58
Auditor's remuneration (Refer note below) 0.18 0.12
Foreign Exchange Loss (Net) 1.70 -
Business Promotion Expenses 1.85 0.33
Bad Debts- written off 1.28 1.00
Advance written off 0.21 -
Corporate social responsibility cost 0.76 0.29
Miscellaneous Expenses 0.42 0.29
Total 21.39 13.13
79 Corporate Overview Statutory Reports Financial Section

Notes to Financial Statement for the year ended 31st March, 2022
(All figures are in INR Crores unless specifically stated otherwise)

Particulars For the Year ended For the Year ended

31st March 2022 31st March 2021
Auditor's remuneration*
As statutory audit fee 0.15 0.12
As Limited review fee 0.03 -
Reimbursement of expenses - -
Other Certifications - -
0.18 0.12
* Net of Rs 0.53 crore incurred during the year ended March 31,2022 towards IPO.

Note No 31 Income tax and Deferred tax

Income tax recognized in statement of Profit and loss

Particulars For the Year ended For the Year ended

31st March 2022 31st March 2021
Income tax expense
Current period 32.93 18.91
Changes in estimates related to prior years 1.36 -
Deferred tax expense
Origination and reversal of temporary differences (0.88) 0.05
Income tax expense 33.41 18.95
Income tax recognized in Other comprehensive Income

Particulars For the Year ended For the Year ended

31st March 2022 31st March 2021
Income tax expense
Remeasurement of the net defined benefit liability/(asset) (0.39) (0.32)
Deferred tax expense
Origination and reversal of temporary differences - -
Income tax expense (0.39) (0.32)
Reconciliation of estimated income tax to income tax expense

Particulars For the Year ended For the Year ended

31st March 2022 31st March 2021
Profit before tax as shown in the Statement of Profit and Loss 127.38 74.52
Enacted Income tax rate in India 25.168% 25.168%
Computed expected tax expenses 32.06 18.76
Effect of :
Depreciation allowance / disallowance under IT Act (0.26) 0.01
Adjustments for IND AS 116 (0.01) 0.05
Expenses allowable on payment basis 0.67 (0.02)
Expenses that are not deductible in determining taxable profit 0.66 0.34
Income not chargable to tax/ expenses not deductible 0.00 0.00
Deductions allowed under Income tax act (0.18) (0.22)
Tax effect on items recognized in OCI (0.39) (0.32)
Income tax expense 32.54 18.59
Recognised in Profit and loss account 32.93 18.91
Recognized in Other comprehensive Income (0.39) (0.32)
32.54 18.59
 Data Patterns (India) Limited Annual Report 2021-22 80

Notes to Financial Statement for the year ended 31st March, 2022
(All figures are in INR Crores unless specifically stated otherwise)

Note No 32 Contingent Liabilities and commitments

Particulars As at As at
31st March 2022 31st March 2021
Contingent liabilities:
Disputed Demands under Appeals
i) Sales Tax 1.21 1.21
ii) Service Tax 0.48 0.48
iii) Income Tax 1.38 1.38
Sales tax and service tax demands disputed by the Company and appeals filed against these disputed demands are pending before
respective appellate authorities. Outflows, if any, arising out of these claims would depend on the outcome of the decision of the
appellate authorities and the Company’s rights for future appeals.
Uncertainity over Income tax treatment
The Company has on-going disputes with Income Tax Authorities against demands arising on completion of assessment proceedings
under Income Tax Act, 1961. The Company has evaluated the above pending disputes and expects that its position will likely be upheld
on ultimate resolution and these will not have a material adverse effect on the Company’s financial position and results of operations.
Bank Guarantees

Particulars As at As at
31st March 2022 31st March 2021
Bank Guarantees given 150.21 131.59
B Commitments

Particulars As at As at
31st March 2022 31st March 2021
Estimated amount of contracts remaining to be executed on capital contracts and not 13.31 30.68
provided for

Note No 33 Employee benefit plans

a) Defined contribution plans
The Company makes Provident fund contributions to defined contribution plans for qualifying employees. Under this scheme, the
Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The contributions payable by
the Company to these plans are at the rates specified in the rules of the schemes.

Particulars For the Year ended For the Year ended

31st March 2022 31st March 2021
Contribution to provident fund recognised in statement of profit and loss 2.77 1.91
b) Defined benefit plans
Gratuity liability has been provided based on the actuarial valuation carried out at the year end.
The company has a gratuity scheme in respect of which company’s contribution is funded through an approved trust fund.
The details of actuarial valuation in respect of Gratuity is furnished hereunder:
81 Corporate Overview Statutory Reports Financial Section

Notes to Financial Statement for the year ended 31st March, 2022
(All figures are in INR Crores unless specifically stated otherwise)

As at As at
31st March 2022 31st March 2021
i) Change in Defined Benefit Obligation (DBO) during the year:
Present value DBO at the beginning of the year 8.58 6.58
Service cost 0.23 0.46
Interest cost 0.68 0.45
Remeasurement(gain)/loss -
Actuarial (gain)/loss arising from experience financial and demographic adjustments 1.51 1.26
Benefits paid (0.47) (0.17)
Present value DBO at the end of the year 10.54 8.58
ii) Change in fair value of plan assets during the year:
Fair value of plan assets as at beginning of the year 0.40 0.17
Expected return on planned assets - -
Contributions 0.71 0.40
Benefits paid (0.47) (0.17)
Re-measurement gain/(loss) - -
Fair value of plan asset at the end of the year 0.64 0.40
iii) Amount recognised in the balance sheet
Present value DBO at the end of the year 10.54 8.58
Fair value of the plan assets at the end of the year 0.64 0.40
(Liability) / Asset recognised in the Balance sheet - net (9.90) (8.18)
iv) Components of employer expenses:
Current service cost 0.23 0.46
Interest cost/ (income) on net defined benefit obligation 0.67 0.44
Expense recognised in Statement of Profit t and Loss 0.90 0.90
v) Re-measurement on the net defined benefit obligation
Return on plan assets (excluding interest income) - (0.01)
Actuarial loss arising from changes in financial assumptions 0.01 0.01
Actuarial loss arising from changes in experience adjustments 1.53 1.26
Actuarial (Gains)/losses arising from changes in demographic assumptions
Re-measurements recognised in other comprehensive income 1.54 1.28
ASSUMPTIONS
The principal assumptions used for the purposes of the actuarial valuations are given below:

Particulars As at As at
31st March 2022 31st March 2021
Discount rate 7.3% 6.82%
Expected rate of return 7.3% 6.82%
Expected salary increment 7.0% 5.00%
Attrition rate
a.) For service 4 years and below 14.0% 5.00%
b.) For service 5 years and above 3.0%
Indian Assured Lives Mortality (2006-08)
Mortality table used
Ultimate
 Data Patterns (India) Limited Annual Report 2021-22 82

Notes to Financial Statement for the year ended 31st March, 2022
(All figures are in INR Crores unless specifically stated otherwise)

Sensitivity analysis - DBO at the end of the year

Particulars As at As at
31st March 2022 31st March 2021
i Discount -1% (1.16) (0.62)
ii Discount +1% 0.97 0.71
iii Escalation -1% 0.73 0.39
iv Escalation +1% (0.77) (0.55)
v Mortality x 95% - -
vi Mortality x 105% - -
vii Attrition -1% (0.14) (0.12)
viii Attrition +1% 0.12 0.13
ix Rs.1,000,000 Benefit Ceiling - -
x No Benefit Ceiling - -

Particulars As at As at
31st March 2022 31st March 2021
Weighted average duration of DBO ( in years) 10 10
Expected cash flows
1 Expected employer contribution in the next year
2 Expected benefit payments
Year 1 1.20 0.59
Year 2 0.62 0.96
Year 3 0.49 0.95
Year 4 1.00 0.61
Year 5 0.67 1.33
Beyond 5 years 23.82 12.58
The Company is exposed to various risks in providing gratuity benefit which are as follows:
(a) Interest Rate Risk: The plan exposes the Company to the risk of fall in interest rates. A fall in interest rates will result in an increase
in the ultimate cost of providing above benefit and will thus result in an increase in the value of the liability (as shown in financial
statements).”
(b) Investment Risk: The probability or likelihood of occurrence of losses relative to the expected return on any particular investment.
(c) Salary Escalation Risk: The present value of the defined benefit plan is calculated with the assumption of salary increase rate of plan
participants in future, based on past experience. Deviation in the rate of increase of salary in future for plan participants from the
rate of increase in salary used to determine the present value of obligation will have a bearing on the plan’s liability.
(d) Demographic Risk: The Company has used certain mortality and attrition assumptions in valuation of the liability. The Company is
exposed to the risk of actual experience turning out adverse compared to the assumptions.

Note No 34 Earnings per share

For the Year ended For the Year ended
31st March 2022 31st March 2021
Profit after taxation (Rs in Crores) 93.97 55.56
Weighted average number of equity shares outstanding during the period (Refer Note
4,82,43,718 4,67,44,225
below)
Basic and diluted earnings per share- ( Face value – Rs.2/- per share ) (In INR) 19.48 11.90
Note:
*The shareholders of the company vide its Annual General meeting held on 12th August 2021 have approved the following
a) Sub Division of nominal value of equity shares with Face value of Rs 10 each to Face value of Rs 2 each
b) Issue of Bonus shares in the ratio of 1:4 (i.e 4 fully paid up equity share for every 1 equity share held)
83 Corporate Overview Statutory Reports Financial Section

Notes to Financial Statement for the year ended 31st March, 2022
(All figures are in INR Crores unless specifically stated otherwise)

The shareholders of the company vide its extra ordinary general meeting held on 03rd September 2021 have approved the issue of
bonus shares in the ratio of 10:1 (i.e 1 fully paid up equity share for every 10 equity share held)
The Basic and Diluted Earnings per share have been calculated considering the above changes in the number of shares for all the prior
periods reported.

Note No 35 Details on unhedged foreign currency exposures

Particulars Currency As at As at
31st March 2022 31st March 2021
Amount receivable in foreign currency - Exports USD 0.23 0.15
GBP 0.03 0.02
Amount payable in foreign currency - Imports USD 0.35 0.12
EUR 0.01 -
GBP - -

Note No 36 Segment Reporting

The Chief Operating Decision Maker (CODM) has considered manufacture ,sale and service of defence electronics as the single segment
of operation.
A. Information about geographical areas
Net sales to customers by geographic area for the year ended is listed below

Particulars For the Year ended For the Year ended

31st March 2022 31st March 2021
(a) India 273.10 181.57
(b) Outside India 37.75 42.38
310.85 223.95
The company does not own any non current assets outside India
B. Information about major customers
Customers individually accounting for more than 10% of the revenues of the company for the relevant period ended is listed below

Particulars For the Year ended For the Year ended

31st March 2022 31st March 2021
No of customers 3 3
% of Revenue from above customers to total revenue from operations 45.5% 48.7%

Note No 37 Capital Management

The Company’s capital management is intended to create value for shareholders by facilitating the meeting of long-term and short-term
goals of the Company. The funding requirements are met through internal accruals, long-term and short-term borrowings.
The Company manages its capital to ensure that it will be able to continue as going concern while maximizing the return to stakeholders
through the optimisation of the debt and equity balance. The following table summarizes the capital of the Company:

Particulars As at As at
31st March 2022 31st March 2021
Total equity 574.51 207.93
Non Current Borrowings 0.73 9.77
Current Borrowings 6.04 23.46
Total Debt 6.76 33.23
Total Capital (Equity + Debt) 581.27 241.16
Equity as a % of total capital 99 86
Debt as a % of total capital 1 14

 Data Patterns (India) Limited Annual Report 2021-22 84

Notes to Financial Statement for the year ended 31st March, 2022
(All figures are in INR Crores unless specifically stated otherwise)

Note No 38 Financial instruments

Categories of financial instruments

Particulars As at As at
31st March 2022 31st March 2021
A. Financial assets
Measured at Fair value through profit or loss (FVTPL): - -
Measured at Fair value through Other comprehensive Income (FVTOCI): - -
Measured at Amortised cost:
Security Deposits 4.46 1.56
Margin Money Deposits 116.27 32.66
Trade Receivables 198.31 155.94
Cash and Cash Equivalents 177.08 8.80
Advances to Employees 0.40 0.44
Interest accrued but not due 5.53 3.60
Other advances - 0.18
Other Receivables - 0.72
502.05 203.91
B. Financial liabilities
Measured at Amortised cost
Borrowings 6.76 33.23
Trade Payables 38.15 12.00
Other Financial Liabilities 22.07 4.01
Lease Liabilities 2.43 3.95
69.42 53.19
The total carrying values of the above financial assets and liabilties are equal to their fair values as at their respective reporting date.
Financial risk management objectives
The Company is broadly exposed to credit risk, liquidity risk and market risk (fluctuations in exchange rates and price risk) as a result of
financial instruments.
Board of Directors have the overall responsibility for the establishment, monitoring and supervision of the Company’s Risk Management
framework.
The Company has an established Risk Management Policy that outlines risk management structure and provides a comprehensive frame
work for identification, evaluation, prioritization, treatment of various risks associated with different areas of finance and operations
Credit Risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to financial
loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its investing activities,
including deposits with banks and financial institutions and other financial instruments.
Significant amount of trade receivables are due from Government /Government Departments and Public sector undertakings (PSU)
consequent to which the Company does not have a credit risk associated with such receivables.The impairment of trade receivables is
based on modified expected credit loss model. The maximum exposure to credit risk at the reporting date is the carrying value of each
class of financial assets disclosed in Note 38
The cash and cash equivalents and margin money deposits are held with banks. The Company has not incurred any losses on account
of default from banks on deposits.
Liquidity Risk
Liquidity Risk is the risk that the company could encounter if it faces difficulty in meeting the obligations associated with financial
liabilities by delivering cash and other financial asset or the risk that the Company will face difficulty in raising financial resources required
to fullfil its commitments. The company’s exposure to liquidity risk is very minimal as it has a prudent liquidity risk management process
in place which ensures maintaining adequate cash and marketable securities to pay its liabilities when they are due. To ensure continuity
of funding, the Company has access to shortterm bank facilities in the nature of bank overdraft facility, cash credit facility and short-term
borrowings to fund its ongoing working capital requirements and growth needs when necessary.
85 Corporate Overview Statutory Reports Financial Section

Notes to Financial Statement for the year ended 31st March, 2022
(All figures are in INR Crores unless specifically stated otherwise)

The table below analyses the company's financial liabilities based on their contractual maturities. The amounts disclosed are contractual
undiscounted cash flows.
As at 31st March 2022

Nature Less than 1 year 1- 2 Years More than 2 Years

Current Borrowings 5.62 - -
Non Current Borrowings 0.42 0.45 0.28
Trade Payables 38.15 - -
Other Financial Liabilities 22.07 - -
Lease Liabilities 1.32 1.03 0.08
As at 31st March 2021

Nature Less than 1 year 1- 2 Years More than 2 Years

Current Borrowings 22.68 - -
Non Current Borrowings 0.78 3.06 6.71
Trade Payables 12.00 - -
Financial Liabilities (Other than Lease Liabilities) 4.01 - -
Lease Liabilities 1.51 1.34 1.10
Market Risk
Market risk is the risk that changes in market prices such as foreign exchange rates, interest rates will affect the company’s income or the
value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures
within acceptable parameters, while optimizing the return. The company’s activities expose it to the financial risks of changes in foreign
exchange rates and interest rate movements (refer to notes below on currency risk and interest risk).
Currency Risk
The company is exposed to foreign exchange risk arising from foreign currency transactions primarily relating to purchases and sales
made in foreign currencies such as US Dollar, Euro etc. Foreign exchange risk arises from existing and future commercial transactions and
recognised assets and liabilities denominated in a currency that is not the company’s functional currency (INR).
The company’s exposure to foreign currency risk in respect of major currencies is given below :

Particulars Currency As at As at
31st March 2022 31st March 2021
Amount receivable in foreign currency - Exports USD 0.23 0.15
GBP 0.03 0.02
Amount payable in foreign currency - Imports USD 0.35 0.12
EUR 0.01 -
GBP - -

Note No 39 Related Party Disclosure

i) The list of related parties as identified by the management for disclosure as under
A) Key management personnel
Mr. Srinivasagopalan Rangarajan (Managing Director)
Ms. Rekha Murthy Rangarajan (Whole Time Director)
Mr Vijay Ananth (Chief Operating Officer and Chief Information Security Officer till 07th February 2022 and additional director w.e.f
08th Feb,2022)
Mr Venkata Subramanian Venkatachalam (Chief Financial Officer w.e.f 03rd September 2021)
Ms. Manvi Bhasin (Company Secretary and Compliance Officer w.e.f 19th July 2021)
B) Relatives of Key management personnel
Mrs. Vasundara Keshava Murthy
Related Party Transactions
The Company has identified all related parties and details of transactions are given below
The following transactions were carried out with the Related Parties.
 Data Patterns (India) Limited Annual Report 2021-22 86

Notes to Financial Statement for the year ended 31st March, 2022
(All figures are in INR Crores unless specifically stated otherwise)

Particulars For the Year ended For the Year ended

31st March 2022 31st March 2021
Key Management Personnel (KMP)
Remuneration to Key Management Personnel 2.43 1.26
Loans repaid 0.52 17.77
Loans received - -
Interest on loan 0.01 2.89
Dividend paid 7.00 0.24
Outstanding Balance of Loan - 0.51
Relative of Key Management Personnel (KMP)
Dividend 0.18 0.01

Note No 40 Additional disclosures under IndAS 115

Reconciliation of the revenue from contract with customers with the amounts disclosed in
the segment information:
As the company operates in a single segment, reconciliation between segment revenue and revenue from contract with customers is
not applicable
Reconciling the amount of revenue recognized in the Statement of Profit and Loss with the contracted price:
For the year ended
Particulars 31st March 2022 31st March 2021
Revenue as per Contracted Price 310.85 223.95
Less: Discounts - -
Revenue as per Statement of Profit and Loss account 310.85 223.95
Timing of Revenue Recognition
For the year ended
Particulars 31st March 2022 31st March 2021
Revenue recognized at a point in time 310.85 223.95
Revenue recognized over a period of time - -
Total 310.85 223.95
Recognition of contract liabilities
As at
Particulars 31st March 2022 31st March 2021
Contract liabilities at the beginning of the period 46.50 33.10
Add: Consideration received during the year as advance 27.20 38.04
Less : Revenue recognised during the period (37.16) (24.64)
Contract liabilities at the end of the period 36.54 46.50
87 Corporate Overview Statutory Reports Financial Section

Notes to Financial Statement for the year ended 31st March, 2022
(All figures are in INR Crores unless specifically stated otherwise)

Note No 41 Leases Disclosure:

The Company has lease contracts for Buildings, furniture and Vehicles used for Administrative purpose. . The Company applies the
exemption available for ‘short-term leases wherever applicable.
Set out below are the carrying amounts of the lease liabilities included under financial liabilities and the movements during the period

Particulars Year ended Year ended

31st March 2022 31st March 2021
Opening Balance 3.95 5.93
Add: Recognized / (deleted) during the year - 0.10
Add:Accretion of Interest 0.30 0.45
less: Lease Payments (1.82) (2.54)
Closing Balance 2.43 3.95
On the above
Current 1.32 1.51
Non Current 1.11 2.43

Maturity Analysis of Lease liability Less than one year 1-5 Years
As at 31st March 2022 1.32 1.11
As at 31st March 2021 1.51 2.43
Amount recognized in the statement of Profit and Loss during the year:

Particulars Year ended Year ended

31st March 2022 31st March 2021
Depreciation on right -of use assets 1.47 2.27
Interest expenses on Lease liability 0.30 0.45
Expenses relating to short -term leases 0.20 0.39
Expenses related to low value assets - -
Total 1.98 3.13

Note No 42 Corporate Social responsibility:

Particulars Year ended Year ended
31st March 2022 31st March 2021
Gross amount required to be spent by the company during the year/ period 0.76 0.29
Amount spent 0.76 0.05
Shortfall at the end of the year - 0.24
Total of previous years shortfall - 0.24
Reason for shortfall -
Nature of CSR activities: Promoting Education, setting up homes for
senior citizens, Contribution to PM CARES
fund.
Details of related party transactions, e.g.,contribution to a trust controlled by the - -
company in relation to CSR expenditure as per relevant Accounting Standard
Where a provision is made with respect to a liability incurred by entering into a - -
contractual obligation, the movements in the provision

 Data Patterns (India) Limited Annual Report 2021-22 88

Notes to Financial Statement for the year ended 31st March, 2022
(All figures are in INR Crores unless specifically stated otherwise)

Note No 43 Issue of shares:

Issue of equity shares through IPO:
The Company has completed Initial public Offering (IPO) of its equity shares, comprising a fresh issue of 51,42,425 equity shares (including
Pre IPO placement of 10,39,861 equity shares) and offer for sale of 59,52,550 equity shares by the existing selling shareholders at an offer
price of Rs. 585 per equity share (Rs 577 for Pre IPO placement) . Pursuant to the IPO, the equity shares were allotted on December 22,
2021 and listed on the BSE Limited and National Stock Exchange of India Limited on December 24, 2021.
IPO expenses:
The total IPO expenses incurred INR 42.56 crores (on provisional basis) (inclusive of taxes) have been proportionately allocated between
the selling shareholders and the company. The Company’s share of expenses (net of tax of INR 0.75 crore) of INR 15.14 crores has been
adjusted against securities premium account.
Utilisation of proceeds from IPO and pre-IPO placement
The details of utilization of proceeds from IPO and pre-IPO placement, net of IPO expenses are as follows:

Particulars Total Utilized Upto Un-utilized Upto

31st March 2022 31st March 2022
Prepayment or repayment of outstanding borrowings availed by our 60.08 60.08 -
Company
Working capital requirements 95.19 - 95.19
Upgradation and expansion of existing facility 59.84 17.39 42.45
General Corporate purposes 66.31 49.07 17.24
281.42 126.54 154.88
Unutilised IPO Proceeds as at March 31, 2022 are available as
a) Fixed Deposits with monitoring agency amounting to INR 150 crores
b) Bank balances in monitoring agency account amounting to INR 4.88 crores (Refer Note 7)

Note No 44 Impact on account of COVID 19:

In view of the Government of India’s Order under the Disaster Management Act, 2005 to implement complete lock down in all parts of
India with effect from 25th March 2020 to contain spread of COVID-19 virus and partial lockdown during FY 2021-22, the operations of
the Company were shut down. Though this has impacted the normal operations of the Company by way of interruption in production,
supply chain disruption and unavailability of personnel, there has been no material impact on the financial performance of the Company
for the quarter and year ended 31st March 2022.
The extent of the impact of COVID-19 on the future operational and finance performance will depend on certain developments
including the duration and spread of the outbreak, the future impact on employees and vendors, all of which are uncertain and cannot
be predicted. As the impact of COVID-19, if any, on the future operational and financial performance of the company may be different
from management estimates in this regard, the company will continue to closely monitor any changes as they emerge.

Note No 45 Ratios as required under Schedule III of Companies Act, 2013

a) Current Ratio

Particulars 31st March 2022 31st March 2021

Current Assets as at 519.85 261.32
Current Liabilities as at 103.46 71.71
Ratio 5.02 3.64
% Change from Previous Period / Year 37.88%
Reason for Variance more than 25%
Due to unutilized IPO proceeds held as fixed deposits (maturity less than or equal to 90 days) as at
31st March 2022
89 Corporate Overview Statutory Reports Financial Section

Notes to Financial Statement for the year ended 31st March, 2022
(All figures are in INR Crores unless specifically stated otherwise)

b) Debt Equity Ratio

Particulars 31st March 2022 31st March 2021

Total Debt as at 6.76 33.23
Total Equity as at 574.51 207.93
Ratio 0.01 0.16
% Change from Previous Year -92.63%
Reason for Variance more than 25%
Due to repayment of Short term and long term borrowings and increase in equity on account of IPO
c) Debt Service Coverage Ratio

Particulars 31st March 2022 31st March 2021

Profit before Tax for the year 127.38 74.52
Add : Depreciation & Amortisation for the year 6.63 5.57
Add : Finance Cost for the year 10.99 14.50
Earnings available for Debt Service for the year 145.00 94.59
Interest Cost on Borrowings for the year 1.04 0.23
Principal Repayments for the year 16.37 0.11
Total 17.41 0.34
Ratio 8.33 278.21
% Change from Previous Year -97.01%
Reason for Variance more than 25%
Due to preclosure of Long term borrowings.
d) Return on Equity / Return on Investment Ratio

Particulars 31st March 2022 31st March 2021

Profit after Tax for the year 93.97 55.56
Total Equity as at 574.51 207.93
Ratio 16.36% 26.72%
% Change from the Previous Year -38.79%
Reason for Variance more than 25%
Due to increase in equity on account of IPO.
e) Inventory Turnover Ratio

Particulars 31st March 2022 31st March 2021

Cost of Materials Consumed + Changes in Inventory for the year 86.07 70.41
Average Inventory 96.76 76.58
Ratio 0.89 0.92
% Change from the Previous Year -3.24%
f) Trade Receivables Turnover Ratio

Particulars 31st March 2022 31st March 2021

Revenue from Operations for the year 310.85 223.95
Average Trade Receivables 177.12 135.78
Ratio 1.75 1.65
% Change from the Previous Year 6.41%
 Data Patterns (India) Limited Annual Report 2021-22 90

Notes to Financial Statement for the year ended 31st March, 2022
(All figures are in INR Crores unless specifically stated otherwise)

g) Trade Payables Turnover Ratio

Particulars 31st March 2022 31st March 2021

Purchases for the year/ 132.09 64.73
Average Trade Payables 25.07 14.63
Ratio 5.27 4.42
% Change from the Previous Year 19.08%
h) Net Capital Turnover Ratio

Particulars 31st March 2022 31st March 2021

Revenue from Operations for the year 310.85 223.95
Net Working Capital as at* 244.93 203.49
Ratio 1.27 1.10
% Change from the Previous Year 15.32%
*(Current assets - Cash and Cash equivalents) - (Current Liabilities - Short term borowings)
i) Net Profit Ratio

Particulars 31st March 2022 31st March 2021

Profit after Tax for the year 93.97 55.56
Revenue from Operation for the year 310.85 223.95
Ratio 30.23% 24.81%
% Change from the Previous Year 21.85%
j) Return on Capital Employed

Particulars 31st March 2022 31st March 2021

Earnings before Interest & Tax for the year 138.38 89.02
Total Equity + Debt as at 575.24 217.70
Ratio 24.06% 40.89%
% Change from the Previous Year -41.17%
Reason for Variance more than 25%
Due to increase in equity on account of IPO.
91 Corporate Overview Statutory Reports Financial Section

Notes to Financial Statement for the year ended 31st March, 2022
(All figures are in INR Crores unless specifically stated otherwise)

Note No 46 Additional Disclosures

A Aging of Trade Receivables
As at 31st March 2022
Particulars Outstanding for following periods from the date of invoice Total
Less than 6 6 months -1 1-2 Years 2-3 years More than 3
months year years
(i) Undisputed Trade receivables – 158.37 20.45 9.45 2.11 7.92 198.30
considered good
(ii) Undisputed Trade Receivables – which - - - -
have significant increase in credit risk
(iii) Undisputed Trade Receivables – credit - - - -
impaired
(iv) Disputed Trade Receivables– - - - -
considered good
(v) Disputed Trade Receivables – which - - - -
have significant increase in credit risk
(vi) Disputed Trade Receivables – credit - - - -
impaired
As at 31st March 2021
Particulars Outstanding for following periods from the date of invoice Total
Less than 6 6 months -1 1-2 Years 2-3 years More than 3
months year years
(i) Undisputed Trade receivables – 106.52 7.83 14.29 25.00 2.29 155.94
considered good
(ii) Undisputed Trade Receivables – which - - - -
have significant increase in credit risk
(iii) Undisputed Trade Receivables – credit - - - -
impaired
(iv) Disputed Trade Receivables– - - - -
considered good
(v) Disputed Trade Receivables – which - - - -
have significant increase in credit risk
(vi) Disputed Trade Receivables – credit - - - -
impaired
B Aging of Trade Payables
As at 31st March 2022
Particulars Outstanding for following periods from the date of invoice Total
Less than 1 1-2 Years 2-3 years More than 3
year years
(i) MSME 3.72 - - - 3.72
(ii) Others 33.81 - - 0.61 34.42
(iii) Disputed dues – MSME - - - - -
(iv) Disputed dues - Others - - - - -
As at 31st March 2021
Particulars Outstanding for following periods from the date of invoice Total
Less than 1 1-2 Years 2-3 years More than 3
year years
(i) MSME 0.24 - - - 0.24
(ii) Others 11.14 0.04 - 0.59 11.76
(iii) Disputed dues – MSME - - - - -
(iv) Disputed dues - Others - - - - -

 Data Patterns (India) Limited Annual Report 2021-22 92

Notes to Financial Statement for the year ended 31st March, 2022
(All figures are in INR Crores unless specifically stated otherwise)

C The Company has paid final dividend of Rs 11.9 crores for the FY 2020-21 during August 2021 upon receipt of approval from
members in the Annual General meeting.
The Board of Directors have recommended a dividend of Rs 3.50 /- per share on equity shares of Rs 2/- each for the Financial Year
2021-22 subject to approval of Members at the Annual General Meeting.
D The company has not been declared as a wilful defaulter by any bank or financial institution or other lenders as defined under the
guidelines on wilful defaulters issued by the Reserve Bank of India.
E The company has not transacted with other companies struck off under section 248 of the Companies Act, 2013 or section 560 of
Companies Act, 1956.
F The Company does not have Investments in other companies and hence compliance with the number of layers prescribed under
clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017 does not apply.
G The company applied to National Company Law Tribunal (NCLT) on 11th December 2019 for merging the activities of its wholly
owned subsidiary Data Patterns India Private Limited through a scheme of amalgamation and the same was approved by National
Company Law Tribunal, Chennai Bench vide its order dated 13th April 2021.
As per the order received from NCLT, the appointed date for the scheme of merger was 01.04.2018. The order from NCLT was filed
with the Ministry of Corporate affairs on 08th May 2021.
The above scheme was given effect in preparation and presentation of the financial statements of the last year (FY 2020-21) in
accordance with the scheme of arrangement and the accounting standards.
H "“No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or
kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”) with the
understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on
behalf of the Company (Ultimate Beneficiaries).
The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether,
directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company (“Ultimate Beneficiaries”)
or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.”"
I There are no proceedings initiated or pending against the company for holding any benami property under the Benami Transactions
(Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.
J The Company has borrowings from banks or financial institutions on the basis of security of current assets held during the financial
year. The quarterly returns or statements of current assets filed by the Company with banks or financial institutions are in agreement
with the books of accounts except as disclosed as under:
Amount in INR crores

Particulars Amount as Amount as per Difference Remarks

per Books Returns submitted
of Account to Banks
Trade Receivables A B C = A-B
As at 30th June 2021 151.07 155.53 (4.46) Difference is due to TDS and TCS under Income
As at 30th September 2021 134.51 135.16 (0.65) Tax, netting off of debtors and creditors balances,
As at 31st December 2021 119.28 122.65 (3.37) and Liquidated Damages not considered in the
returns submitted to Banks.
Trade Payables
As at 30th June 2021 (3.25)* 3.01 (6.26) Difference is due to advances paid to suppliers
As at 30th September 2021 (2.95)* 0.92 (3.87) not considered in the returns submitted to Banks
As at 31st December 2021 (0.1)* 2.84 (2.94)
Inventories
As at 30th September 2021 86.81 83.89 2.92 Differences in conversion cost considered in the
As at 31st December 2021 106.51 102.47 4.04 returns submitted to the banks as compared to
the conversion cost considered at the time of
quarterly closure of books of account.
“*Represents debit balances in vendor ledgers (net)
Note: The Company has not submitted its quarterly stock statements for the quarter ended 31 March 2022 as on the date of
approval of financial statements by the Board of Directors.”
93 Corporate Overview Statutory Reports Financial Section

Notes to Financial Statement for the year ended 31st March, 2022
(All figures are in INR Crores unless specifically stated otherwise)

K There are no charges / satisfaction yet to be registered with ROC beyond the statutory period as prescribed under the Companies
Act, 2013.
L The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
M The Company does not have any transactions, which are not recorded in the books of account, that has been surrendered or
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other
relevant provisions of the Income Tax Act, 1961)

For and on behalf of the Board For R.G.N. Price & Co.,
Chartered Accountants
FR No.002785S
Srinivasagopalan Rangarajan Rekha Murthy Rangarajan K Venkatakrishnan
Director Director Partner
DIN : 00643456 DIN : 00647472 M.No. 208591
Venkata Subramanian Venkatachalam Manvi Bhasin
Place: Chennai Chennai Chief Financial Officer Company Secretary
Date: 23rd May 2022 M No: 49883
 Data Patterns (India) Limited Annual Report 2021-22 94

Notes
95 Corporate Overview Statutory Reports Financial Section

Notes
 Data Patterns (India) Limited Annual Report 2021-22 96

Notes
Data Patterns (India) Limited
Plot H9, 4th Main Road,
SIPCOT IT Park, Siruseri,
Off Rajiv Gandhi Salai (OMR),
Chennai - 603 103. INDIA.
www.datapatternsindia.com