NSE & BSE / 2020-21 / 99 January 28, 2021

The Manager, Corporate Services, National Stock Exchange of India Limited Exchange Plaza, Bandra Kurla Complex, Bandra (E), Mumbai 400 051

Ref: Symbol: PERSISTENT

The Manager, Corporate Services, Bombay Stock Exchange Limited 14th Floor, P J Towers, Dalal Street, Mumbai 400 001

Ref: Scrip Code: 533179

Dear Sir/Madam,

Sub: Audited Financial Statements for the quarter and period ended December 31, 2020

We wish to inform you that the Board of Directors at its meeting held on January 27, 2021, and continued on January 28, 2021, has approved the Audited Financial Statements for the quarter and period ended December 31, 2020.

Accordingly, please find enclosed the following documents:

1. Audited Consolidated Financial Statements for the quarter and period ended December 31, 2020;
1. Audited Unconsolidated Financial Statements for the quarter and period ended December 31, 2020.

Please note that, pursuant to our intimation dated January 19, 2021, the Board Meeting will continue on Friday, January 29, 2021 for other agenda items.

Please acknowledge the receipt.

Thanking you,

Yours Sincerely, For Persistent Systems Limited

Amit Atre Company Secretary ICSI Membership No.: A20507

Encl: As above

Walker Chandiok & Co LLP

11th floor, Tower II, One International Center, SB Marg, Prabhadevi (W) Mumbai 400 013 India T +91 22 6626 2699 F +91 22 6626 2601

To the Members of Persistent Systems Limited

Report on the Audit of the Condensed Interim Consolidated Financial Statements

Opinion

1. We have audited the accompanying condensed interim consolidated financial statements of Persistent Systems Limited Holding and its subsidiaries (the Holding Company and its and its associate as listed in Annexure 1 , which comprise the Condensed interim consolidated Balance Sheet as at 31 December 2020, the Condensed interim consolidated Statement of Profit and Loss (including Other Comprehensive Income) for the quarter and nine months ended 31 December 2020, the Condensed interim consolidated Cash Flow Statement and the Condensed interim consolidated Statement of Changes in Equity for the nine months ended 31 December 2020, and a summary of the significant accounting policies and other explanatory information.
1. In our opinion and to the best of our information and according to the explanations given to us and based on the consideration of the reports of the other auditors on separate condensed interim financial statements and on the other financial information of the subsidiaries, the aforesaid condensed interim consolidated financial give a true and fair view in conformity with the accounting principles generally accepted in India, including in accordance with Indian Accounting Standard specified under Section 133 of the Act, of the consolidated state of affairs of the Group and its associate as at 31 December 2020, and its consolidated profit (including other comprehensive income) for the quarter and nine months ended 31 December 2020, its consolidated cash flows and the consolidated changes in equity for the nine months ended 31 December 2020.

Basis for Opinion

Chartered Accountants Offices in Bengaluru, Chandigarh, Chennai, Gurugram, Hyderabad, Kochi, Kolkata, Mumbai, New Delhi, Noida and Pune 3. We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Our responsibilities under those standards are further described in the Audit of the condensed interim consolidated financial statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India condensed interim consolidated financial statements under the provisions of the Act and the rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained and the audit evidence obtained by the other auditors in terms of their reports referred to in paragraph 11 of the Other Matters section below is sufficient and appropriate to provide a basis for our opinion.

Page 1 of 5

on the Audit of the Condensed Interim Consolidated Financial Statements

Responsibilities of Management and Those Charged with Governance for the Condensed Interim Consolidated Financial Statements

1. The accompanying condensed interim consolidated financial statements have been approved by the Holding in Section 134(5) of the Act with respect to the preparation of these condensed interim consolidated financial statements that give a true and fair view of the consolidated state of affairs (consolidated financial position), consolidated profit or loss (consolidated financial performance including other comprehensive income), consolidated changes in equity and consolidated cash flows of the Group including its associate in accordance with the accounting principles generally accepted in India, including in accordance with Ind AS 34 specified under Section 133 of the Act. accuracy of records including financial information considered necessary for the preparation of condensed interim consolidated Ind AS 34 financial statements. Further, in terms of the provisions of the Act, the respective Board of Directors /management of the companies included in the Group and its associate, covered under the Act are responsible for maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the condensed interim consolidated financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error. These condensed interim consolidated financial statements have been used for the purpose of preparation of the condensed interim consolidated financial statements by the Directors of the Holding Company, as aforesaid. Group and its associate or to cease operations, or has no realistic alternative but to do so.
1. In preparing the condensed interim consolidated financial statements, the respective Board of Directors of the companies included in the Group and of its associate are responsible for assessing the ability of the Group and its associate to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the
1. The Board of Directors are also responsible for overseeing the financial reporting process of the companies included in the Group and its associate.

Condensed Interim Consolidated Financial Statements

1. Our objectives are to obtain reasonable assurance about whether the condensed interim consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an guarantee that an audit conducted in accordance with Standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these condensed interim consolidated financial statements.
1. As part of an audit in accordance with Standards on Auditing, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the condensed interim consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Group and its associate have in place an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls.

on the Audit of the Condensed Interim Consolidated Financial Statements

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of the Group and its associate to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our isclosures in the condensed interim consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit conditions may cause the Group and its associate to cease to continue as a going concern.
Evaluate the overall presentation, structure, and content of the condensed interim consolidated financial statements, including the disclosures, and whether the condensed interim consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities within the Group and its associate to express an opinion on the condensed interim consolidated financial statements. We are responsible for the direction, supervision, and performance of the audit of the condensed interim consolidated financial statements of such entities included in the condensed interim consolidated financial statements, of which we are the independent auditors. For the other entities included in the condensed interim consolidated financial statements, which have been audited by the other auditors, such other auditors remain responsible for the direction, supervision and performance of the audits carried out by them. We remain solely responsible for our audit opinion. audited by other auditors whose reports have been furnished to us by the management and our opinion on the
1. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
1. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

Other Matters

We did not audit the condensed interim financial statements of nineteen subsidiaries, whose condensed interim financial statements (before eliminating inter company balances/transactions) 5,080.39 million 1,688.09 million as at 31 December 2020 3,822.13 million and net cash inflows 125.56 million for the nine months ended on that date, as considered in the condensed interim consolidated financial statements. These condensed interim financial statements have been condensed interim consolidated financial statements, in so far as it relates to the amounts and disclosures included in respect of these subsidiaries, is based solely on the reports of the other auditors.

Our opinion above on the condensed interim consolidated financial statements, is not modified in respect of the above matter with respect to our reliance on the work done by and the reports of the other auditors.

The condensed interim consolidated Nil for the nine months ended 31 December 2020, as considered in the condensed interim consolidated financial statements, in respect of one associate, whose financial statements have not been audited by us. These condensed interim financial statements are unaudited and have been furnished to us by the management and our opinion on the condensed interim consolidated financial statements, in so far as it relates to the aforesaid associate is based solely on such unaudited condensed interim financial statements. In our opinion and according to the information and explanations given to us by the management, these condensed interim financial statements are not material to the Group and its associate.

Our opinion above on the condensed interim consolidated financial statements, is not modified in respect of the above matter with respect to our reliance on the financial statements certified by management.

Persistent Systems Limited on the Audit of the Condensed Interim Consolidated Financial Statements

The condensed interim consolidated financial statements for the corresponding quarter and nine months 31 December 2019, included in the accompanying condensed interim consolidated financial statements as comparative financial information, was subject to review by us vide our review report dated 30 January 2020.

Our opinion is not modified in respect of this matter.

For Walker Chandiok & Co LLP

Chartered Accountants Firm Registration No:001076N/N500013

Bharat Shetty Partner Membership No:106815

UDIN:21106815AAAAAL8052

Place: Mumbai Date: 28 January 2021

Persistent Systems Limited on the Audit of the Condensed Interim Consolidated Financial Statements

Annexure 1

List of entities included

Sr. No.	Name of Entity	Relationship
1	Persistent Systems Limited (PSL)	Holding Company
2	Persistent Systems, Inc. (PSI)	Wholly owned subsidiary of PSL
3	Persistent Systems Pte Ltd.	Wholly owned subsidiary of PSL
4	Persistent Systems France SAS	Wholly owned subsidiary of PSL
5	Persistent Systems Malaysia Sdn. Bhd.	Wholly owned subsidiary of PSL
6	Persistent Systems Germany GmbH (PSGG)	Wholly owned subsidiary of PSL
7	Persistent Telecom Solutions Inc.	Wholly owned subsidiary of PSI
8	Valista Limited (VL) (Dissolved w.e.f. 24 June	Wholly owned subsidiary of AGL
	2020)
9	Aepona Group Limited (AGL)	Wholly owned subsidiary of PSI
10	Aepona Limited	Wholly owned subsidiary of AGL
11	Youperience GmbH (YGmbH)	Wholly owned subsidiary of PSGG
12	Youperience Limited	Wholly owned subsidiary of YGmbH
13	Persistent Systems Lanka (Private) Limited	Wholly owned subsidiary of AGL
14	Persistent Systems Mexico, S.A. de C.V.	Wholly owned subsidiary of PSI
15	Persistent Systems Israel Ltd	Wholly owned subsidiary of PSI
16	PARX Werk AG	Wholly owned subsidiary of PSGG
17	PARX Consulting GmbH	Wholly owned subsidiary of PARX Werk AG
18	Capiot Software Private Limited (Acquired w.e.f. October 29, 2020)	Wholly owned subsidiary of PSL
19	Capiot Software Inc. (Capiot US) (Acquired w.e.f. November 7, 2020)	Wholly owned subsidiary of PSI
20	Capiot Software Pty Limited (Acquired w.e.f. November 7, 2020)	Wholly owned subsidiary of Capiot US
21	Capiot Software Pte Limited (Acquired w.e.f. November 7, 2020)	Wholly owned subsidiary of Capiot US
22	Klisma e-Services Private Limited	Associate Company of PSL

This space has been intentionally left blank

Persistent Systems Limited
CONDENSED INTERIM CONSOLIDATED BALANCE SHEET AS AT DECEMBER 31, 2020	Notes	As at	As at	As at
		December 31, 2020	December 31, 2019	March 31, 2020
ASSETS		(Audited)	(Unaudited)	(Audited)
Non-current assets Property, plant and equipment	6.1	2,264.35	2,271.34	2,224.60
Capital work-in-progress Right of use assets Goodwill	6.2 6.3	26.37 914.28 209.04	7.94 602.64 90.92	166.18 566.81 88.94
Other Intangible assets Intangible assets under development	6.4	1,117.43 2.73	1,666.25 93.40	1,434.93 137.20
Financial assets - Investments	7	4,534.20 3,815.63	4,732.49 3,783.59	4,618.66 4,620.97
- Loans - Other non-current financial assets Deferred tax assets (net)	8 9 10	203.22 44.79 1,005.24	158.56 500.18 765.36	200.41 358.93 960.08
Other non-current assets	11	339.20 9,942.28	296.75 10,236.93	331.31 11,090.36
Current assets Financial assets
- Investments - Trade receivables (net) - Cash and cash equivalents	12 13 14	5,629.40 6,237.39 2,029.08	2,309.43 5,511.94 1,458.17	5,164.77 5,921.96 1,899.99
- Other bank balances - Loans	15 16	7,517.82 0.24	5,623.16 2.21	2,672.19 13.71
- Other current financial assets Current tax assets (net) Other current assets	17 18	2,549.90 191.57 1,562.14	2,321.08 77.05 1,669.65	2,068.54 163.93 1,926.24
TOTAL		25,717.54 35,659.82	18,972.69 29,209.62	19,831.33 30,921.69
EQUITY AND LIABILITIES
EQUITY
Equity share capital Other equity	5	764.25 26,649.00	764.25 23,091.49	764.25 23,093.30
LIABILITIES		27,413.25	23,855.74	23,857.55
Financial liabilities
- Lease liabilities - Borrowings Provisions	20 19 21	777.19 47.04 285.72	408.25 8.49 189.65	353.36 46.22 182.79
		1,109.95	606.39	582.37
Financial liabilities - Lease liabilities	20	229.31	305.76	309.06
- Trade payables	22	2,276.67	1,822.41	2,247.09
- Other financial liabilities Other current liabilities	23 24	166.25 2,127.82	92.08 1,181.50	862.34 1,320.13
Provisions Current tax liabilities (net)	25	2,142.60 193.97	1,345.74 -	1,610.99 132.16
TOTAL		7,136.62 35,659.82	4,747.49 29,209.62	6,481.77 30,921.69
Summary of significant accounting policies	4
The accompanying notes are an integral part of the condensed interim consolidated financial statements. As per our report of even date

Chartered Accountants Firm Registration No.: 001076N/N500013		Persistent Systems Limited

Bharat Shetty		Dr. Anand Deshpande
Partner Membership No. :- 106815		Chairman and Managing Director DIN: 00005721	Executive Director and Chief Executive Officer DIN: 06475949	Independent Director DIN: 00016814
		Place: Pune Date : 28 January 2021	Place: New Jersey, USA Date : 28 January 2021	Place: Mumbai Date : 28 January 2021

		Amit Atre
		Company Secretary Membership No. A20507	Executive Director and Chief Financial Officer DIN: 06475949

Place: Mumbai Date : 28 January 2021		Place: Pune Date : 28 January 2021	Place: Mumbai Date : 28 January 2021

Firm Registration No.: 001076N/N500013

	Notes	For the quarter ended		For the nine months ended		For the year ended
		December 31, 2020	December 31, 2019	December 31, 2020	December 31, 2019	March 31, 2020
		In ₹ Million	In ₹ Million	In ₹ Million	In ₹ Million	In ₹ Million
		(Audited)	(Unaudited)	(Audited)	(Unaudited)	(Audited)
Income
Revenue from operations (net)	26	10,753.98	9,227.29	30,745.30	26.394.43	35,658.08
Other income	27	300 12	347.75	677.36	1,030.57	1,323.77
Total income (A)		11,054.10	9,575.04	31,422.66	27,425.00	36,981.85

Expenses
Employee benefits expense	28.1	6,422.18	5,594.47	18,304.09	15,880.43	21.556.40
Cost of professionals	28.2	1,318.68	998.71	4,020.55	2,755.71	3,918.94
Finance costs (refer note 35)		13.75	14.76	42.11	51.64	63.32
Depreciation and amortization expense	6.5	461.05	428.44	1,336.45	1,239.82	1,659.62
Other expenses	29	1,188.34	1,398.91	3,473.81	4,104.41	5,260.15
Total expenses (B)		9,404.00	8,435.29	27,177,01	24,032.01	32,458 43
Profit before tax (A - B)		1,650.10	1,139.75	4,245.65	3,392.99	4,523.42

Tax expense
Current tax		411.41	348.37	1,278.34	988.64	1,354.70
Tax (credit) / charge in respect of earlier period / year		(0.53)	47.34	6.90	45.97	52.55
Deferred tax (credit) / charge		29.98	(135.22)	(168.77)	(206.30)	(286.72)
Total tax expense		440.86	260.49	1,116.47	828.31	1,120.53
Net profit for the period / year (C)		1.209.24	879 26	3.129.18	2.564.68	3.402.89
Other comprehensive income
Items that will not be reclassified to profit and loss (D) - Remeasurements of the defined benefit asset / (liabilities) (net of tax)		(32.22)	(0.77)	(14.27)	(37.17)	(34.80)

		(32.22)	(0.77)	(14.27)	(37.17)	(34.80)
Items that may be reclassified to profit and loss (E)
- Effective portion of cash flow hedge (net of tax)		96.00	(31.11)	436.99	(179.01)	(429.15)
- Exchange differences in translating the financial statements of foreign operations		314 59	(129.22)	(140.42)	(46.81)	323.15
		410.59	(160.33)	296.57	(225.82)	(106.00)
Total other comprehensive income for the period / year (D) + (E)		378.37	(161.10)	282.30	(262.99)	(140.80)

Total comprehensive income for the period / year (C) + (D) + (E)		1.587.61	718.16	3.411.48	2.301.69	3,262.09
Earnings per equity share	30
[Nominal value of share ₹10 (Corresponding period
/ Previous year: ₹10)]
Basic (In ₹) Diluted (In ₹)		15.82 15.82	11.50 11.50	40.94 40.94	33.41 33.41	44.38 44 38
	$\overline{4}$
Summary of significant accounting policies
The accompanying notes are an integral part of the condensed interim consolidated financial statements.
As per our report of even date
For Walker Chandiok & Co LLP		For and on behalf of the Board of Directors of
Chartered Accountants		Persistent Systems Limited
Firm Registration No.: 001076N/N500013
			Sandeen Kalva
Digitally cignod by

Persistent Systems Limited
CONDENSED INTERIM CONSOLIDATED CASH FLOW STATEMENT FOR THE NINE MONTHS ENDED DECEMBER 31, 2020

CONDENSED INTERIM CONSOLIDATED CASH FLOW STATEMENT FOR THE NINE MONTHS ENDED DECEMBER 31, 2020
		For the Nine Months Ended December 31, 2020 (Audited)	December 31, 2019 (Unaudited)	For the year ended March 31, 2020 (Audited)

Adjustments for:		4,245.65	3,392.99	4,523.42
Interest income Finance costs		(403.32) 42.11	(428.00) 51.64	(545.28) 63.32
Dividend income		-	(13.95)	(13.98)
Depreciation and amortization expense		1,336.45 134.12	1,239.82 10.73	1,659.62 (131.29)
Change in foreign currency translation reserve		(18.65)	(32.40)	119.30
		(93.97) 22.80	(84.21) (4.76)	58.51 (46.77)
currency cash and cash equivalents
Bad debts Provision for doubtful receivables (net)		85.52 31.37	- 45.08	- 83.86
Employee stock compensation expenses		243.65	165.34	236.79
Provision for doubtful deposits and advances Provision for diminution in value of investments		24.09 18.63	200.00 -	248.48 -
		(14.27)	(50.47)	(46.14)
		(29.23) 127.23	(4.59) (37.25)	(6.95) (119.02)
Profit on sale of investments (net)		(413.37)	(152.95)	(164.81)
		(7.09) 5,331.72	(0.49) 4,296.53	5.96 5,925.02

Increase in other non current assets		(13.43) (24.41)	14.63 (265.38)	(14.44) (235.30)
Increase in other current financial assets		(191.31)	(439.43)	(232.15)
Increase in trade receivables		555.56 (442.83)	(286.64) (523.54)	(559.10) (894.77)
		793.89	(175.60)	939.04
		634.54 6,643.73	(403.76) 2,216.81	(145.37) 4,782.93
Direct taxes paid (net of refunds)		(1,250.96)	(998.95)	(1,328.27)
	(A)	5,392.77	1,217.86	3,454.66
Payment towards capital expenditure (including intangible assets)		(1,073.33)	(521.85)	(758.39)
Proceeds from sale of property, plant and equipment		62.43	9.99	12.68
		(448.47)	(435.48)	(435.48)
Purchase of bonds		(583.88)	(285.54)	(901.61)
Sale proceeds of non-current investments		172.84 -	382.70 25.22	819.87 25.22
Investments in mutual funds		(17,967.72)	(11,624.39)	(19,456.95)
		18,999.10 (4,387.52)	13,253.13 (1,100.23)	17,670.49 2,108.15
Maturity of deposits with financial institutions		-	250.00	250.00
Interest received Dividends received		239.50 -	497.46 13.95	503.60 13.98
	(B)	(4,987.05)	464.96	(148.44)

Repayment of long term borrowings Payment of lease liabilities		(3.18) (247.11)	(3.21) -	(4.62) (287.70)
Shares bought back		-	(1,677.01)	(1,677.01)
Specific project related grant received		- 9.00	- 3.00	39.14 3.00
Interest paid		(42.23)	(51.72)	(2.09)
		(1.21) -	(229.28) (47.99)	(1,146.38) (154.14)
Dividends paid Tax on dividend paid			(2,006.21)

Persistent Systems Limited
CONDENSED INTERIM CONSOLIDATED CASH FLOW STATEMENT FOR THE NINE MONTHS ENDED DECEMBER 31, 2020
	December 31, 2020	For the Nine Months Ended December 31, 2019	For the year ended March 31, 2020
	120.99	(323.39)	76.42
Cash and cash equivalents acquired on acquisition	1,899.99 30.90	1,739.45 37.35	1,739.45 37.35
Effect of exchange difference on translation of foreign currency cash and cash equivalents	(22.80)	4.76	46.77
	2,029.08	1,458.17	1,899.99

Cash on hand (refer note 14) Balances with banks	0.27	0.26	0.24
On current accounts* (refer note 14) On saving accounts (refer note 14)	1,519.47	1,177.34 10.27 7.26	1,566.06 0.36
On Exchange Earner's Foreign Currency accounts (refer note 14) On deposit accounts with original maturity less than three months (refer note 14)	277.92 221.15	273.03 -	261.86 71.47
	2,029.08	1,458.17	1,899.99
research and development activities specified in the agreement.
Summary of significant accounting policies - refer note 4
The accompanying notes are an integral part of the condensed interim consolidated financial statements.
As per our report of even date

Chartered Accountants	Persistent Systems Limited
Firm Registration No.: 001076N/N500013


Bharat Shetty	Dr. Anand Deshpande
Partner Membership No. :- 106815	Chairman and Managing Director	Executive Director and Chief Executive Officer	Independent Director
	DIN: 00005721	DIN: 06475949	DIN: 00016814
	Place: Pune Date : 28 January 2021	Place: New Jersey, USA Date : 28 January 2021	Place: Mumbai Date : 28 January 2021

	Amit Atre

	Company Secretary Membership No. A20507	Executive Director and Chief Financial Officer DIN: 06475949

CONDENSED INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE NINE MONTHS ENDED DECEMBER 31, 2020

(refer note 5)

during the period	2020

764.25	-	764.25



		2019

791.19	(26.94)	764.25

791.19	(26.94)	764.25

Persistent Systems Limited CONDENSED INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE NINE MONTHS ENDED DECEMBER 31, 2020

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Particulars				Reserves and surplus				Items of other comprehensive income		Total
	Securities premium	General reserve	Share options		Gain on bargain Capital redemption	Special Economic	Retained earnings	Effective portion of	Exchange
			outstanding	purchase	reserve	Zone re-investment		cash flow hedges	differences on
			reserve			reserve			translating the
									financial statements
									of foreign
									operations
Balance as at April 1, 2020		12.227.41	290.51	57.71	35.75	49.95	10.087.74	(244.09)	588.32	23,093.30
Net profit for the period							3,129.18			3,129.18
Other comprehensive income for the period							(14.27)	436.99	(140.42)	282.30
Employee stock compensation expenses			243.65							243.65
Adjustments towards employees stock options			(95.46)							(95.46)
Other changes during the period			(1.98)	(1.99)						(3.97)
Balance at December 31, 2020		12.227.41	436.72	55.72	35.75	49.95	13.202.65	192.90	447.90	26,649.0

Secu rities mium pre		Shar tions e op outs ing rese tand rve	Gain in purc on b arga hase	rese rve	Zone re-i t rese tmen nves rve	Reta ined ings earn	Exch ange ation oper s
	12,22 7.41

Othe preh ensiv e inc for th iod 7) (14.2 99 436. .42) (140 282. 30 r com ome e per - - - - - - Emp loyee k com ation 65 243. 243. 65 stoc pens expe nses - - - - - - - - stme nts t ds e mplo stoc k opt ions 6) (95.4 (95.4 6) owar yees - - - - - - - - Othe r cha duri ng th riod ) (1.98 ) (1.99 (3.97 ) nges e pe - - - - - - - 12,22 7.41 72 436. 2 55.7 5 35.7 5 49.9 2.65 13,20 0 192.9 90 447. 26,6 49.0 - Secu rities mium Shar tions Gain in purc on b Reta ined ings Exch pre e op arga earn ange outs ing rese tand hase Zone re-i t rese tmen rese rve nves rve rve ation oper s 774. 10 10,56 5.95 9 76.2 1 52.7 8.81 0 70.0 7.52 10,65 6 185.0 17 265. 22,6 55.6 1 Net p rofit f or th riod 4.68 2,56 2,56 4.68 e pe - - - - - - - Othe preh ensiv e inc for th iod 7) (37.1 .01) (179 (46.8 1) (262 .99) r com ome e per - - - - - - sfer to ca pital rede mptio 4 26.9 4) (26.9 n res erve - - - - - - - - sition al im on ad optio n of Ind A S 11 6 (ne t of t ) .60) (123 (123 .60) pact axes - - - - - - - - Divid end (229 (229 .28) - - - - - - - n div idend 9) (47.9 (47.9 9) - - - - - - - - Emp loyee stoc k com ation 4 165.3 165.3 4 pens expe nses - - - - - - - - 1) (25.6 stme nts t ds e mplo stoc k opt ions 1 25.6 owar yees - - - - - - - Utilis ed to ward s buy bac k of s hares (refe r not e 5d ) .10) (774 .97) (875 (1,65 0.07 ) - - - - - - - Othe r cha duri ng th riod 4.07 0.59 15.13 19.79 nges e pe - - - - - - 10,59 5.63 61 216. 4 67.8 5 35.7 0 70.0 1.25 11,88 6.05 36 218. 23,0 91.4 9 - Secu rities mium Shar tions Gain in purc on b Reta ined ings Exch pre e op arga earn ange outs ing rese tand hase Zone re-i t rese tmen rese rve nves rve rve ation oper s 774. 10 10,56 5.95 9 76.2 1 52.7 8.81 0 70.0 7.52 10,65 6 185.0 17 265. 22,6 55.6 1 Net p rofit f or th 2.89 3,40 3,40 2.89 e yea r - - - - - - - - Othe preh ensiv e inc for th iod 0) (34.8 .15) (429 15 323. (140 .80) r com ome e per - - - - - - sfer to ca pital rede mptio 4 26.9 4) (26.9 n res erve - - - - - - - - sition al im pact on ad optio n of Ind A S 11 6 (ne t of t ) .60) (123 (123 .60) axes - - - - - - - - ) (1,14 6.38 (1,14 6.38 ) Divid end - - - - - - - - n div idend .14) (154 (154 .14) - - - - - - - - sfer from Spe cial E mic Z re-in vestm ent r 5) (20.0 5 20.0 cono one e eserv - - - - - - - - sfer to ge l rese .89 1,630 ) (1,63 0.89 nera rve - - - - - - - Emp loyee stoc k com ation 79 236. 236. 79 pens expe nses - - - - - - - - ds e mplo k opt ions 1 25.6 1) (25.6 stme nts t stoc owar yees - - - - - - - - Utilis ed to ward s buy bac k of s hares (refe r not e 5d .10) (774 .97) (875 (1,65 0.07 ) - - - - - - - Othe r cha duri ng th 4.96 3.04 5.00 13.00 nges e yea r - - - - - - 12,22 7.41 51 290. 1 57.7 5 35.7 5 49.9 7.74 10,08 .09) (244 32 588. 23,0 93.3 0 - of s ignifi cant untin licies - ref te 4 mary acco g po er no rt of d fina nying note an i nteg ral pa the c onde nsed inte rim c lidate ncial stat nts. acco mpa s are onso eme ort o f eve n dat er ou r rep e Char tered Acc Pers isten t Sys Lim ited ount ants tems Firm Reg istra tion No.: 0010 76N/ N500 013 Bhar at Sh Dr. A nand Des hpan de etty Partn Chai and Mana ging Direc Exec utive Dire ctor and Indep ende nt Di recto er rman r Mem bers hip N 1068 15 DIN: 000 0572 1 Chie f Exe e Off DIN: 000 1681 4 cutiv icer o. :- DIN: 064 7594 9 Place : Pun Place : New Jers ey, U Place : Mu mbai Date : 28 Jan Date : 28 Jan Date : 28 Jan 2021 uary uary uary Amit Atre Com Sec retar Exec utive Dire ctor and Chie f Fin ancia l Offi pany cer Mem bers hip N o. A2 DIN: 064 7594 9 Place : Mu mba i Place : Pun Place : Mu mba i Date : 28 Jan 2021 Date : 28 Jan Date : 28 Jan 2021 uary uary uary	)		Net p rofit f or th riod e pe	- -	12,22 7.41 -	51 290. -	1 57.7 -	5 35.7 -	5 49.9 -	7.74 10,08 9.18 3,12	.09) (244 -	32 588. -	23,0 93.3 0 3,12 9.18
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Persistent Systems Limited CONDENSED INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE NINE MONTHS ENDED DECEMBER 31, 2020 Securities premium is used to record the premium on issue of shares. The reserve is utilised in accordance with the General reserve represents amounts transferred from profit for the year and from Share options outstanding reserve

a) Securities premium

provisions of Section 52 of the Companies Act, 2013.

c) Share options outstanding reserve

Share options outstanding reserve represents the cumulative expense recognized for equity-settled transactions at each reporting date until the employee share options are exercised expired upon which such amount is transferred to General reserve. The excess of the Group's portion of equity of the acquired company over its cost is treated as gain on bargain Capital redemption reserve represents the nominal value of the shares bought back; and is created and utilised in The Special Economic Zone re-investment reserve has been created out of the profit in terms of the provisions of Section 10AA(1)(ii) of the Income tax Act, 1961. The reserve should be utilised by the Group for acquiring new plant

d) Gain on bargain purchase

purchase in the financial statements.

accordance with Section 69 of the Companies Act, 2013.

and machinery for the purpose of its business in accordance with Section 10AA(2) of the Income tax Act, 1961.

The cash flow hedge reserve represents the cumulative effective portion of gains or losses arising on changes in fair value of hedging instruments entered into towards highly probable transactions. Such gains or losses are subsequently recognised in the statement of profit and loss in the period in which the said transaction occurs hedging instruments are cancelled. The foreign exchange differences arising from the translation of financial statements of foreign operations with functional currency other than Indian rupees is recognised in other comprehensive income and is presented under equity in the foreign currency translation reserve. The amount is transferred to retained earnings upon disposal of

investment in foreign operation.

Notes forming part of Condensed Interim Consolidated Financial Statements

1. Nature of operations

Parent Company Company domiciled in India and incorporated under the provisions of the Companies Act, 1956. The shares of the Company are listed on Bombay Stock Exchange and National Stock Exchange. The Company is a global Company specializing in software products, services and technology innovation. The Company offers complete product life cycle services.

Persistent Systems, Inc. (PSI) based in the USA, a wholly owned subsidiary of PSL, is engaged in software product, services and technology innovation.

Persistent Systems Pte. Ltd. (PS Pte.) based in Singapore, a wholly owned subsidiary of PSL, is engaged in software development, professional and marketing services.

Persistent Systems France SAS (PSFS) based in France, a wholly owned subsidiary of PSL, is engaged in software products, services and technology innovation.

Persistent Telecom Solutions Inc. (PTSI) based in the USA, a wholly owned subsidiary of Persistent Systems Inc., is engaged in software products, services and technology innovation in telecom and Product Lifecycle Management domains.

Persistent Systems Malaysia Sdn. Bhd. (PSM) based in Malaysia, a wholly owned subsidiary of PSL, is engaged in software products and services.

Aepona Holdings Limited (an Ireland based wholly owned subsidiary of Persistent Systems Inc.) operates as the holding Company of Aepona Group Limited.

Aepona Holdings Limited has been dissolved with effect from October 24, 2019. Persistent Systems, Inc., its holding Company, took over all the assets and liabilities of Aepona Holdings Limited on the date of dissolution.

Aepona Group Limited, an Ireland based wholly owned subsidiary of Persistent Systems, Inc. (previously owned by Aepona Holdings Limited) operates as the holding Company of Aepona Limited and Valista Limited.

Aepona Limited (a UK based wholly owned subsidiary of Aepona Group Limited) is engaged in the business of a telecommunication API gateway for defining, exposing, controlling and monetizing telecom services to partners and application developers and an Internet of Thin

Valista Limited has been dissolved with effect from June 24, 2020. Aepona Group Limited, its holding Company, took over all the assets and liabilities of Valista Limited on the date of dissolution.

Persistent Systems Lanka (Private) Limited (Formerly known as Aepona Software (Private) Limited) (a Sri Lanka based wholly owned subsidiary of Valista Limited) has adopted indirect sales model, with services revenue being billed to Aepona Limited. Sale of services are then contracted between Aepona Limited and customers.

Persistent Systems Mexico, S.A. de C.V (a Mexico based wholly owned subsidiary of Persistent Systems Inc.) has adopted indirect sales model, with services revenue being billed to Persistent Systems Inc. Sale of services are then contracted between Persistent Systems Inc. and customers.

Persistent Systems Israel Ltd. (an Israel based wholly owned subsidiary of Persistent Systems Inc.) has adopted indirect sales model, with services revenue being billed to Persistent Systems Inc. Sale of services are then contracted between Persistent Systems Inc. and customers.

Persistent Systems Germany GmbH (wholly owned subsidiary of Persistent Systems Limited) operates as the holding Company of PARX Werk AG. The Company is specializing in software development.

PARX Werk AG (a Switzerland based wholly owned subsidiary of Persistent Systems Germany GmbH) is engaged in the business of software products, services and technology innovation in the digital practice.

PARX Consulting GmbH (a Germany based wholly owned subsidiary of PARX Werk AG) is engaged in the business of software products, services and technology innovation in the digital practice.

Herald Technologies Inc. (HTI), based in the USA a wholly owned subsidiary of Persistent Systems Inc., was working on implementation of platforms and related IT services for the healthcare industry.

Herald Technologies Inc. has been dissolved with effect from June 24, 2019. Persistent Systems, Inc., its holding Company, took over all the assets and liabilities of Herald Technologies, Inc. on the date of dissolution.

Youperience GmbH (a Germany based wholly owned subsidiary of Persistent Systems Germany GmbH) is engaged in Salesforce related implementation services.

Youperience Limited (a United Kingdom based wholly owned subsidiary of Youperience GmbH) is engaged in Salesforce related implementation services.

Name of the subsidiary/associate		Ownership Percentage as at		Country of
	December 31, 2020	December 31, 2019	March 31. 2020	incorporation
Persistent Systems, Inc.	100%	100%	100%	USA
Persistent Systems Pte Ltd.	100%	100%	100%	Singapore
Persistent Systems France SAS	100%	100%	100%	France
Persistent Telecom Solutions Inc.	100%	100%	100%	USA
Persistent Systems Malaysia Sdn. Bhd.	100%	100%	100%	Malaysia
Aepona Holdings Limited (Dissolved with effect from October 24, 2019)		100%	$\overline{\phantom{a}}$	Ireland
Aepona Group Limited	100%	100%	100%	Ireland
Aepona Limited	100%	100%	100%	UK
Valista Limited (Dissolved with effect from June 24, 2020)		100%	100%	Ireland
Persistent Systems Lanka (Private) Limited	100%	100%	100%	Sri Lanka
Persistent Systems Mexico, S.A. de C.V.	100%	100%	100%	Mexico
Persistent Systems Israel Ltd.	100%	100%	100%	Israel
Persistent Systems Germany GmbH	100%	100%	100%	Germany
PARX Werk AG	100%	100%	100%	Switzerland
PARX Consulting GmbH	100%	100%	100%	Germany
Youperience GmbH	100%	100%	100%	Germany
Youperience Limited	100%	100%	100%	United Kingdom
CAPIOT Software Private Limited (Acquired w e f. October 29, 2020)	100%			India
CAPIOT Software Inc. (Acquired w.e.f. November 7, 2020)	100%			USA
CAPIOT Software Pty Limited (Acquired w.e.f. November 7, 2020)	100%		$\overline{a}$	Australia
CAPIOT Software Pte Limited (Acquired w.e.f. November 7, 2020)	100%			Singapore
Klisma e-Services India Pvt Ltd. (in liquidation)	50%	50%	50%	India

Notes forming part of Condensed Interim Consolidated Financial Statements

4. Summary of significant accounting policies

(a) Use of estimates

The preparation of the condensed interim consolidated financial statements in conformity with Ind AS requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenue, expenses, assets and liabilities and disclosure of contingent liabilities at the end of period best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

Estimation of uncertainties relating to the global health pandemic, COVID-19:

The Group has evaluated likely impact of COVID - 19 on the overall business of the Group. The Group as at the date of the approval of these condensed interim consolidated financial statements, has used various available sources of information to analyse the carrying amount of its financial assets and exposures. The impact of COVID - condensed interim consolidated financial statements may differ from the estimate as on the date of the approval of the condensed interim consolidated financial statements.

Expected credit loss:

The Group has considered the current and anticipated future economic conditions relating to the industries the Group deals with and the countries where it operates. In calculating expected credit loss, the Group has also considered related credit information for its customers to estimate the probability of default in future and has taken into account estimates of possible effect from the pandemic, COVID -19 using the forward looking approach prescribed by Ind AS 109.

Impact on hedged and unhedged foreign currency exposure:

Based on its assessment, the Group believes that the probability of occurrence of its forecasted transaction are not likely to be impacted by COVID - 19. Hence, the Group continues to believe that there is no foreseeable impact the effectiveness of its cash flow hedges due to this global pandemic.

Carrying value of financial instruments:

uncertainties arising out of COVID 19. These financial assets are mainly investments in liquid securities and no material permanent decline in their carrying value are expected.

Impact on revenue:

The Group continues to re-evaluate the probable revenues from customers in various verticals to assess any possible drops in revenue from any of these verticals due to the economic stress caused by COVID - 19. Accordingly, it is of the opinion that the customers could re-prioritise their discretionary spend in immediate future to conserve resources.

The impact assessment of COVID - 19 is a continuing process given the uncertainties associated with its nature and duration. The Group has considered the same to the extent known currently and has taken steps to measure the cost budgets required to complete its performance obligations in respect of fixed price contracts and incorporated the impact of likely delays and costs in meeting its obligations.

Critical accounting estimates

i. Revenue recognition

The Group uses the percentage-of-completion method in accounting for its fixed-price contracts. Use of the percentage-ofcompletion method requires the Group to estimate the efforts or costs expended to date as a proportion of the total efforts or costs to be expended. Efforts or costs expended have been used to measure progress towards completion. Provisions for estimated losses, if any, on uncompleted contracts are recorded in the period in which such losses become probable based on the expected contract estimates at the reporting date.

Further, the Group uses significant judgement while determining the transaction price allocated to performance obligations using the expected cost plus margin approach.

In respect of the contracts where the transaction price is payable as revenue share at pre-defined percentage of customer revenue and bearing in mind, the time gap between the close of the accounting period and availability of the revenue report from the customer, the Group is required to use its judgement to ascertain the income from royalty on the basis of historical trends of customer revenue.

ii. Income taxes

The Group's two major tax jurisdictions are India and the United States, though the Group also files tax returns in other overseas jurisdictions. Significant judgements are involved in determining the provision for income taxes.

Notes forming part of Condensed Interim Consolidated Financial Statements

iii. Intangible assets and contingent consideration in business combinations

Business combinations are accounted for using Ind AS 103, Business Combinations. Ind AS 103 requires the identifiable intangible assets and contingent consideration to be fair valued in order to ascertain the net fair value of identifiable assets, liabilities and contingent liabilities of the acquiree. Significant estimates are required to be made in determining the value of contingent consideration and intangible assets. These valuations are conducted by independent valuation experts.

iv. Estimates related to useful life of property, plant and equipment and intangible assets

Property, Plant and Equipment represent a significant proportion of the asset base of the Group. The charge in respect of depreciation is derived after determining an estimate of an ass end of its life. The useful lives and residual values of Group's assets are determined by management at the time the asset is acquired and reviewed periodically. The lives are based on historical experience with similar assets as well as anticipation of future events, which may impact their life, such as changes in technology.

v. Impairment of Goodwill

Goodwill is tested for impairment on an annual basis and whenever there is an indication that the recoverable amount of a cash generating unit is less than its carrying amount based on a number of factors including operating results, business plans, future cash flows and economic conditions. The recoverable amount of cash generating units is determined based on higher of valuein-use and fair value less cost to sell. The goodwill impairment test is performed at the level of the cash-generating unit or groups of cash-generating units which are benefiting from the synergies of the acquisition and which represents the lowest level at which goodwill is monitored for internal management purposes. Market related information and estimates are used to determine the recoverable amount. Key assumptions on which management has based its determination of recoverable amount include estimated long term growth rates, weighted average cost of capital and estimated operating margins. Cash flow

vi. Provisions

Provisions are determined based on the best estimate of the amount required to settle the obligation at the reporting date. If the effect of time value of money is material, provisions are discounted using a current pre-tax rate that reflects the risks specific to the liability. These estimates are reviewed at each balance sheet date and adjusted to reflect the current best estimates of the amount required.

vii. Internally generated Intangible assets

During the period / year, the management assets including those under development. Based on the current revenue generated from these lines of business, expected future revenue and the basis of amortization followed, the management considers the carrying value of these intangible assets as recoverable

viii. Leases

Ind AS 116 requires lessees to determine the lease term as the non-cancellable period of a lease adjusted with any option to extend or terminate the lease, if the use of such option is reasonably certain. The Group makes an assessment on the expected lease term on a lease-by-lease basis and thereby assesses whether it is reasonably certain that any options to extend or terminate the contract will be exercised. In evaluating the lease term, the Group considers factors such as any significant leasehold improvements undertaken over the lease term, costs relating to the termination of the lease and the importance of the underlying asset to the Group operations taking into account the location of the underlying asset and the availability of suitable alternatives. The lease term in future periods is reassessed to ensure that the lease term reflects the current economic circumstances. After considering current and future economic conditions, the Group has concluded that no changes are required to lease periods relating to the existing lease contracts.

(b) Property, Plant and Equipment

Property, Plant and Equipment are stated at cost, less accumulated depreciation and accumulated impairment losses, if any. The cost comprises the purchase price and directly attributable costs of bringing the asset to its working condition for its intended use. Any trade discounts and rebates are deducted in arriving at the purchase price. Capital work-in-progress includes cost of Property, Plant and Equipment that are not ready to be put to use.

Subsequent expenditure related to an item of Property, Plant and Equipment is added to its original cost only if it is probable that future economic benefits associated with the item will flow to the Group. All other expenses on existing Property, Plant and Equipment, including day-to-day repair and maintenance expenditure and cost of replacing parts, are charged to the statement of profit and loss for the period during which such expenses are incurred.

Gains or losses arising from disposal of Property, Plant and Equipment are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the statement of profit and loss when the asset is disposed.

(c) Intangible assets

Intangible assets including software licenses of enduring nature and contractual rights acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less accumulated amortization and accumulated impairment losses, if any. Cost comprises the purchase price and any directly attributable cost of bringing the

Notes forming part of Condensed Interim Consolidated Financial Statements

asset to its working condition for its intended use.

Gains or losses arising from disposal of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the statement of profit and loss when the asset is disposed.

Research and development cost

Research costs are expensed as incurred. Development expenditure incurred on an individual project is recognized as an intangible asset when the Group can demonstrate:

technical feasibility of completing the intangible asset so that it will be available for use or sale;
its intention to complete the asset;
its ability to use or sell the asset;
how the asset will generate probable future economic benefits;
the availability of adequate resources to complete the development and to use or sell the asset; and
the ability to measure reliably the expenditure attributable to the intangible asset during development.

Such development expenditure, until capitalization, is reflected as intangible assets under development.

Following the initial recognition, internally generated intangible assets are carried at cost less accumulated amortization and accumulated impairment losses, if any. Amortization of internally generated intangible asset begins when the development is complete and the asset is available for use.

(d) Business combinations

The acquisition method of accounting is used to account for all business combinations, regardless of whether equity instruments or other assets are acquired. The consideration transferred for the acquisition of a subsidiary comprises the

Fair values of the assets transferred;
Liabilities incurred to the former owners of the acquired business;
Equity interests issued by the Group; and
Fair value of any asset or liability resulting from a contingent consideration arrangement.

Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are, with limited exceptions, measured initially at their fair values at the acquisition date. The Group recognizes any non-controlling interest in the acquired entity on an acquisition-by-acquisition basis either at fair value or at the non-

Acquisition-related costs are expensed as incurred.

The excess of the:

Consideration transferred;
Amount of any non-controlling interest in the acquired entity, and
Acquisition-date fair value of any previous equity interest in the acquired entity

over the fair value of the net identifiable assets acquired is recorded as goodwill. If those amounts are less than the fair value of the net identifiable assets of the business acquired, the difference is recognized in other comprehensive income and accumulated in equity as capital reserve provided there is clear evidence of the underlying reasons for classifying the business combination as a bargain purchase. In other cases, the bargain purchase is recognized directly in equity as capital reserve.

(e) Goodwill/ Gain on bargain purchase

Goodwill represents the cost of business acquisition in excess of the Group's interest in the net fair value of identifiable assets, liabilities and contingent liabilities of the acquiree. When the net fair value of the identifiable assets, liabilities and contingent liabilities acquired exceeds the cost of business acquisition, a gain is recognized in the other comprehensive income as gain on bargain purchase. Goodwill is measured at cost less accumulated impairment losses.

(f) Depreciation and amortization

Depreciation on Property, Plant and Equipment assets estimated by the management.

The management estimates the useful lives for the Property, Plant and Equipment as follows:

Assets	Useful lives
Buildings*	25 years
Computers	3 years
Computers - Servers and networks*	3 years
Office equipments	5 years
Plant and equipment*	5 years
Plant and equipment (Windmill)*	20 years
Plant and equipment (Solar Energy System)*	10 years
Furniture and fixtures*	5 years
Vehicles*	5 years

Notes forming part of Condensed Interim Consolidated Financial Statements

*For these classes of assets, based on internal assessment and independent technical evaluation carried out by external valuers the management believes that the useful lives as given above best represent the period over which the management expects to use these assets. Hence the useful lives of these assets are different from the useful lives as prescribed under Part C of Schedule II of the Companies Act 2013.

5,000 are fully depreciated in the period / year of acquisition.

Leasehold improvements are amortized over the period of lease or useful life, whichever is lower.

Intangible assets are amortized on a straight-line basis over their estimated useful lives ranging from 3 to 6 years from the day the asset is made available for use.

(g) Financial instruments

i) Financial assets

Initial recognition and measurement

Financial assets are initially measured at fair value. Transaction costs that are directly attributable to the acquisition of financial assets (other than financial assets at fair value through profit or loss) are added to the fair value of the financial assets on initial recognition. Transaction costs directly attributable to the acquisition of financial assets at fair value through profit or loss are recognised immediately in the statement of profit and loss.

Subsequent measurement

For the purpose of subsequent measurement, financial assets are classified as: - Financial assets at amortized cost

Financial assets that are held within a business model whose objective is to hold assets for collecting contractual cash flows and whose contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding are subsequently measured at amortized cost using the effective interest rate method. The change in measurements are recognized as finance income in the statement of profit and loss. - Financial assets at fair value through other comprehensive income (FVTOCI)

recognized in other comprehensive income. - Financial assets at fair value through profit or loss (FVTPL)

Any financial asset which does not meet the criteria for categorization as financial assets at amortized cost or as FVTOCI, is classified as financial asset at FVTPL. Financial assets except derivative contracts included within the FVTPL category

are subsequently measured at fair value with all changes recognized in the statement of profit and loss. - Forward exchange contracts not intended for trading or speculation purposes, classified as derivative financial instruments

As per the accounting principles laid down in Ind AS 109 ting to cash flow hedges, derivative financial instruments which qualify for cash flow hedge accounting are fair valued at balance sheet date and the effective portion of the resultant loss / (gain) is debited / (credited) to the hedge reserve under other comprehensive income and the ineffective portion is recognized to the statement of profit and loss. Derivative financial instruments are carried as forward contract receivable when the fair value is positive and as forward contract payable when the fair value is negative.

Changes in the fair value of derivative instruments that do not qualify for hedge accounting are recognized in the statement of profit and loss as they arise.

Hedge accounting is discontinued when the hedging instrument expires or is sold, or terminated, or exercised, or no longer qualifies for hedge accounting. Any cumulative gain or loss on the hedging instrument recognized under other comprehensive income is transferred to the statement of profit and loss when the forecasted transaction occurs or affects the statement of profit and loss or when a hedged transaction is no longer expected to occur.

Derecognition

The Group derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party.

On derecognitio consideration received and receivable and the cumulative gain or loss that had been recognised in other comprehensive income, and accumulated in equity, if any is recognised in the statement of profit and loss.

Notes forming part of Condensed Interim Consolidated Financial Statements

ii) Financial liabilities

Initial recognition and measurement

Financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the issue of financial liabilities (other than financial liabilities at fair value through profit or loss) are deducted from the fair value of the financial liabilities on initial recognition. Transaction costs directly attributable to the issue of financial liabilities at fair value through profit or loss are recognised immediately in the statement of profit and loss.

Subsequent measurement

For the purpose of subsequent measurement, financial liabilities are classified as: - Financial liabilities at amortized cost

Financial liabilities such as loans and borrowings are subsequently measured at amortized cost using the effective interest rate method. The change in measurements are recognized as finance costs in the statement of profit and loss. - Financial liabilities at fair value through profit or loss (FVTPL)

Financial liabilities include financial liabilities held for trading and financial liabilities designated upon initial recognition at fair value through profit or loss if the recognition criteria as per Ind AS 109 are satisfied. Gains or losses on liabilities held for trading are recognized in statement of profit and loss. Fair value gains or losses on liabilities designated as FVTPL attributable to changes in own credit risk are recognized in other comprehensive income. All other changes in fair value of liabilities designated as FVTPL are recognized in the statement of profit and loss. The Group has not designated any financial liability as FVTPL.

Derecognition

difference between the carrying amount of the financial liability derecognized and the consideration paid and payable is recognized in the statement of profit and loss.

(h) Impairment

i) Financial assets

The Group applies Expected Credit Loss (ECL) model for measurement and recognition of impairment loss on financial assets measured at amortized cost and financial assets that are debts instruments and are measured at fair value through other comprehensive income (FVTOCI). ECL is the difference between contractual cash flows that are due and the cash flows that the Group expects to receive, discounted at the original effective interest rate.

For trade receivables, the Group recognizes impairment loss allowance based on lifetime ECL at each reporting date, right from its initial recognition. For other financial assets, the Group determines whether there has been a significant increase in the credit risk since initial recognition. If credit risk has not increased significantly, 12 month ECL is used to provide for impairment loss. However, if credit risk has increased significantly, lifetime ECL is used.

ii) Non-financial assets

The carrying amounts of Property, Plant and Equipment and Goodwill are reviewed at each balance sheet date or whenever there is any indication of impairment based on internal/external factors. If any indications exist, the Group estimates the a recoverable amount.

In such cases, the recoverable amount is determined for the Cash Generating Unit (CGU) to which the asset belongs. If the recoverable amount of an asset (or CGU) is estimated to be less than its carrying amount, the carrying amount of the asset (or CGU) is reduced to its recoverable amount. The recoverable amount is the greater of the asset's fair value and its value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and risks specific to the asset.

An impairment loss is recognised in the statement of profit and loss.

Recoverable amount of intangible assets under development that is not yet available for use is estimated at least at each financial period / year end even if there is no indication that the asset is impaired.

(i) Borrowing costs

Borrowing cost includes interest and amortization of ancillary costs incurred in connection with the arrangement of borrowings.

Borrowing costs directly attributable to the acquisition, construction or development of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective asset. All other borrowing costs are expensed in the period / year they occur.

Notes forming part of Condensed Interim Consolidated Financial Statements

(j) Leases

mises. The Group assesses whether a contract contains a lease, at inception of a contract. 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.

To assess whether a contract conveys the right to control the use of an identified asset, the Group assesses whether: (i) the contract involves the use of an identified asset

(ii) the Group has substantially all of the economic benefits from use of the asset through the period of the lease and (iii) the Group has the right to direct the use of the asset

Where the Group is a lessee

The Group accounts for each lease component within the contract as a lease separately from non-lease components of the contract and allocates the consideration in the contract to each lease component on the basis of the relative stand-alone price of the lease component and the aggregate stand-alone price of the non-lease components.

The Group recognises right-of-use asset representing its right to use the underlying asset for the lease term at the lease commencement date. The cost of the right-of-use asset measured at inception shall comprise of the amount of the initial measurement of the lease liability adjusted for any lease payments made at or before the commencement date less any lease incentives received, plus any initial direct costs incurred and an estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset or restoring the underlying asset or site on which it is located.

The right-of-use assets is subsequently measured at cost less any accumulated depreciation, accumulated impairment losses, if any and adjusted for any remeasurement of the lease liability. The right-of-use assets is depreciated using the straight-line method from the commencement date over the shorter of lease term or useful life of right-of-use asset. The estimated useful lives of right-of use assets are determined on the same basis as those of Property, Plant and Equipment.

Right-of-use assets are tested for impairment whenever there is any indication that their carrying amounts may not be recoverable. Impairment loss, if any, is recognised in the statement of profit and loss.

The Group measures the lease liability at the present value of the lease payments that are not paid at the commencement date of the lease. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined. If that rate cannot be readily determined, the Group uses incremental borrowing rate.

The lease payments shall include fixed payments, variable lease payments based on an index or rate, residual value guarantees, exercise price of a purchase option where the Group is reasonably certain to exercise that option and payments of penalties for terminating the lease, if the lease term reflects the lessee exercising an option to terminate the lease.

The lease liability is subsequently remeasured by increasing the carrying amount to reflect interest on the lease liability, reducing the carrying amount to reflect the lease payments made and remeasuring the carrying amount to reflect any reassessment or lease modifications or to reflect revised in-substance fixed lease payments.

When the lease liability is remeasured, the corresponding adjustment is reflected in the right-of-use asset, or statement of profit and loss if the right-of-use asset is already reduced to zero.

The Group has elected not to apply the requirements of Ind AS 116 to short-term leases of all assets that have a lease term of 12 months or less and leases for which the underlying asset is of low value. The lease expenses associated with these leases are recognized in the statement of profit and loss on a straight line basis.

Group as a lessor

At the inception of the lease the Group classifies each of its leases as either an operating lease or a finance lease. The Group recognises lease payments received under operating leases as income over the lease term.

(k) Revenue recognition

Revenue is measured at the fair value of the consideration received or receivable taking into account the amount of any trade discounts and volume rebates allowed by the Group. Revenue is recognized to the extent it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognized:

(i) Income from sale of software services and products

The Group derives revenues primarily from IT services comprising of software development and related services and from the licensing of software products.

Arrangements with customers for software related services are either on a time-and-material or a fixed-price basis.

Revenue on time-and-material contracts are recognized as and when the related services are performed. Revenue from fixedprice contracts, where the performance obligations are satisfied over time and where there is no uncertainty as to measurement or collectability of consideration, is recognized as per the percentage-of-completion method. When there is uncertainty as to measurement or ultimate collectability, revenue recognition is postponed until such uncertainty is resolved.

Notes forming part of Condensed Interim Consolidated Financial Statements

Revenue from licenses where the customer ob period.

. When support services are provided in conjunction with the licensing arrangement and the license and the support services have been identified as two separate performance obligations, the transaction price for such contracts are allocated to each performance obligation of the contract based on their relative standalone selling prices. Maintenance revenue is recognized proportionately over the period in which the services are rendered.

Revenue from revenue share is recognized in accordance with the terms of the relevant agreements.

The Group accounts for volume discounts and pricing incentives to customers as a reduction of revenue based on the proportionate allocation of the discounts amount to each of the underlying performance obligation that corresponds to the progress by the customer towards earning the discount. Also, when the level of discount varies with increases in levels of revenue transactions, the Group recognizes the liability based on its estimate of the customer's future purchases. If it is probable that the criteria for the discount will not be met, or if the amount thereof cannot be estimated reliably, then discount is not recognized until the payment is probable and the amount can be estimated reliably. The Group recognizes changes in the estimated amount of obligations for discounts in the period in which the change occurs.

Unbilled revenue represents revenue recognized in relation to work done until the balance sheet date for which billing has not taken place.

Unearned revenue represents the billing in respect of contracts for which the revenue is not recognized.

The Group collects Goods and Services Tax, on behalf of the government and, therefore, these are not economic benefits flowing to the Group. Hence, they are excluded from revenue.

(ii) Interest

Interest income is recognized on a time proportion basis taking into account the carrying amount and the effective interest rate.

(iii) Dividend

Dividend income is recognized whe

(l) Government grants

Government grants are recognized at fair value when there is reasonable assurance that the Group will comply with the conditions attaching to them and the grants will be received. Grants related to purchase of assets are treated as deferred income and allocated to income statement over the useful lives of the related assets while grants related to expenses are deducted in reporting the related expenses in the income statement.

(m) Foreign currency translation

Foreign currency transactions and balances

Initial recognition

Foreign currency transactions are recorded in the respective functional currencies of the entities in the Group, by applying to the foreign currency amount the exchange rate between the functional currency of each individual entity and the foreign currency at the date of the transaction.

Conversion

Foreign currency monetary items are reported using the exchange rate prevailing at the reporting date. Non-monetary items, which are measured in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction. Non-monetary items which are carried at fair value or other similar valuation denominated in a foreign currency are reported using the exchange rates at the date when the values were determined.

Exchange differences

Exchange differences arising on conversion / settlement of foreign currency monetary items and on foreign currency liabilities relating to Property, Plant and Equipment acquisition are recognized as income or expenses in the period / year in which they arise.

Notes forming part of Condensed Interim Consolidated Financial Statements

Translation of foreign operations

The Group presents the condensed interim consolidated financial statements in INR which is the functional currency of the Parent Company.

The assets and liabilities of a foreign operation are translated into the reporting currency (INR) at the exchange rate prevailing at the reporting date. Their statement of profit and loss are translated at exchange rates prevailing at the dates of transactions or weighted average rates, where such rates approximate the exchange rate at the date of transaction. The exchange differences arising on translation are accumulated in the foreign currency translation reserve under other comprehensive income. On disposal of a foreign operation, the accumulated foreign currency translation reserve relating to that foreign operation is recognized in the statement of profit and loss.

(n) Retirement and other employee benefits

(i) Provident fund

Provident fund is a defined contribution plan covering eligible employees. The Parent Company and the eligible employees make a monthly contribution to the provident fund maintained by the Regional Provident Fund Commissioner equal to the specified percentage of the basic salary of the eligible employees as per the scheme. The contributions to the provident fund are charged to the statement of profit and loss for the period / year when the contributions are due. The Parent Company has no obligation, other than the contribution payable to the provident fund.

(ii) Gratuity

Gratuity is a defined benefit obligation plan operated by Persistent Systems Limited and Persistent Systems Lanka (Private) e cost of providing benefit under gratuity plan is determined on the basis of actuarial valuation using the projected unit credit method at the reporting date and are charged to the statement of profit and loss, except for the remeasurements, comprising of actuarial gains and losses which are recognized in full in the statement of other comprehensive income in the reporting period in which they occur. Remeasurements are not reclassified to the statement of profit and loss subsequently.

(iii) Superannuation

Superannuation is a defined contribution plan covering eligible employees of the Parent Company. The contribution to the superannuation fund managed by the insurer is equal to the specified percentage of the basic salary of the eligible employees as per the scheme. The contribution to this scheme is charged to the statement of profit and loss on an accrual basis. There are no other contributions payable other than contribution payable to the respective fund.

(iv) Leave encashment

Accumulated leave, which is expected to be utilized within the next twelve months, is treated as short-term employee benefit. The Group measures the expected cost of such absences as the additional amount that it expects to pay as a result of the unused entitlement that has accumulated at the reporting date.

The Group treats accumulated leave expected to be carried forward beyond twelve months, as long-term employee benefit for measurement purposes. Such long-term compensated absences are provided for based on the actuarial valuation using the projected unit credit method at the reporting date. Remeasurements, comprising of actuarial gains and losses are recognized in full in the statement of profit and loss. Expense on non-accumulating compensated absences is recognized in the period in which the absences occur.

The Group presents the entire leave encashment liability as a current liability in the balance sheet, since it does not have an unconditional right to defer its settlement beyond twelve months after the reporting date.

(v) Long service awards

The cost of providing benefit under long service awards scheme is determined on the basis of actuarial valuation using the projected unit credit method at the reporting date. Remeasurements, comprising of actuarial gains and losses are recognized in full in the statement of profit and loss.

(o) Income taxes

Tax expense comprises of current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income Tax Act, 1961 enacted in India and tax laws prevailing in the respective tax jurisdictions where the Group operates. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date. Current income tax relating to items recognized directly in equity is recognized in equity and not in statement of profit and loss.

Deferred income taxes reflect the impact of temporary differences between tax base of assets and liabilities and their carrying amounts. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the reporting date.

Notes forming part of Condensed Interim Consolidated Financial Statements

Deferred tax liabilities are recognized for all taxable temporary differences, except deferred tax liability arising from initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and, affects neither accounting nor taxable profit/ loss at the time of transaction. Deferred tax assets are recognized for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses, except deferred tax assets arising from initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and, affects neither accounting nor taxable profit/ loss at the time of transaction.

In the situations where the Group is entitled to a tax holiday under the Income-tax Act, 1961 enacted in India or tax laws prevailing in the respective tax jurisdictions where it operates, no deferred tax (asset or liability) is recognized in respect of temporary differences w deduction during the tax holiday period. Deferred tax in respect of temporary differences which reverse after the tax holiday period is recognized in the period / year in which the temporary differences originate.

The carrying amount of deferred tax asset is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available against which such deferred tax assets can be realized.

Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred tax assets and deferred tax liabilities relate to the same taxable entity and the same taxation authority.

Deferred tax relating to items recognized outside the statement of profit and loss is recognized in co-relation to the underlying transaction either in other comprehensive income or directly in equity.

Minimum alternate tax (MAT) paid in a period / year is charged to the statement of profit and loss as current tax. MAT credit available is recognized as an asset only to the extent that there is convincing evidence that the Group will pay normal income tax during the period, i.e., the period for which MAT credit is allowed to be carried forward. In the period / year in which the Group recognizes MAT credit as an asset in accordance with the Guidance Note on Accounting for Credit Available in respect of Minimum Alternative Tax under the Income-tax Act, 1961, the said asset is created by way of credit to the statement of ch reporting date and writes down the asset to the extent the Group does not have convincing evidence that it will pay normal tax during the specified period.

(p) Segment reporting

(i) Identification of segment

providing software products, services and technology innovation covering full life cycle of product to its customers.

The components of the Group that engage in business activities from which they earn revenue and incur expenses, whose operating results a

(ii) Allocation of income and direct expenses

Income and direct expenses allocable to segments are classified based on items that are individually identifiable to that segment such as salaries, project related travel expenses etc. The remainder is considered as un-allocable expense and is charged against the total income.

(iii) Unallocated items

Unallocated items include general corporate income and expense items which are not allocated to any business segment.

Segregation of assets, liabilities, depreciation and amortization and other non-cash expenses into various reportable segments have not been presented except for trade receivables as these items are used interchangeably between segments and the Group is of the view that it is not practical to reasonably allocate these items to individual segments and an ad-hoc allocation will not be meaningful.

(iv) Inter-segment transfers

There are no inter-segments transactions.

(v) Segment accounting policies

The Group prepares its segment information in conformity with accounting policies adopted for preparing and presenting the condensed interim consolidated financial statements of the Group as a whole.

Notes forming part of Condensed Interim Consolidated Financial Statements

(q) Earnings per share (EPS)

Basic earnings per share are calculated by dividing the net profit for the period / year attributable to equity shareholders by the weighted average number of equity shares outstanding during the period / year. The weighted average number of equity shares outstanding during the reporting period / year is adjusted for events such as bonus issue, bonus element in a rights issue, share split, and reverse share split (consolidation of shares), if any occurred during the reporting period/ year, that have changed the number of equity shares outstanding, without a corresponding change in resources.

For the purpose of calculating diluted earnings per share, the net profit for the period / year attributable to the equity shareholders and the weighted average number of equity shares outstanding during the period / year, are adjusted for the effects of all dilutive potential equity shares.

The number of shares and potential dilutive equity shares are adjusted retrospectively for all periods presented for any bonus shares issues including for changes effected prior to the approval of the condensed interim consolidated financial statements by the Board of Directors.

(r) Provisions

A provision is recognized when the Group has a present obligation as a result of past event; it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are determined based on the best estimate of the amount required to settle the obligation at the reporting date. If the effect of time value of money is material, provisions are discounted using a current pre-tax rate that reflects the risks specific to the liability. These estimates are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

(s) Contingent liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Group or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably.

(t) Cash and cash equivalents

Cash and cash equivalents in the cash flow statement comprises of cash at bank, cash in hand and short term deposits with an original maturity period of three months or less.

(u) Employee stock compensation expenses

Employees of the Group receive remuneration in the form of share based payment transactions, whereby employees render services as consideration for equity instruments granted (equity-settled transactions).

In accordance with Ind AS 102 e cost of equity-settled transactions is determined by the fair value of the options at the date of the grant and recognized as employee compensation cost over the vesting period. The cumulative expense recognized for equity-settled transactions at each reporting date until the vesting date reflects the extent to which the

The expense or credit recognized in the statement of profit and loss for a period / year represents the movement in cumulative expense recognized as at the beginning and end of that period / year and is recognized in employee benefits expense. In case of the employee stock option schemes having a graded vesting schedule, each vesting tranche having different vesting period has been considered as a separate option grant and accounted for accordingly.

Where the terms of an equity-settled transaction award are modified, the minimum expense recognized is the expense as if the terms had not been modified, if the original terms of the award are met. An additional expense is recognized for any modification that increases the total fair value of the share-based payment transaction or is otherwise beneficial to the employee as measured at the date of modification.

The employee stock option expenses in respect of the employees of the subsidiaries are charged to the respective subsidiary. (This space is intentionally left blank)

Notes forming part of Condensed Interim Consolidated Financial Statements

5. Share capital

	As at December 31, 2020 In Million	As at December 31, 2019 In Million	As at March 31, 2020 In Million
Authorized shares (No. in million)
200 (Corresponding period/ Previous year: 200) equity shares of 10 each	2,000.00	2,000.00	2,000.00
	2,000.00	2,000.00	2,000.00
Issued, subscribed and fully paid-up shares (No. in million)
76.43 (Corresponding period/ Previous year: 76.43 equity shares of 10 each) equity shares of 10 each	764.25	764.25	764.25
Issued, subscribed and fully paid-up share capital	764.25	764.25	764.25

a) Reconciliation of the shares outstanding at the beginning and at the end of the period/ year

The reconciliation of the number of shares outstanding and the amount of share capital is set out below:

	As at			As at	As at
		December 31, 2020		December 31, 2019	March 31, 2020
	No. of shares	Amount	No. of shares	Amount	No. of shares	Amount
Number of shares at the beginning of the period / year	76.43	764.25	79.12	791.19	79.12	791.19
Less: Shares bought back	-	-	2.69	26.94	2.69	26.94
Number of shares at the end of the period / year	76.43	764.25	76.43	764.25	76.43	764.25

(In Million)

b) Terms / rights attached to equity shares

10 per share. Each holder of equity shares is entitled to one vote per share. The Group declares and pays dividends in Indian rupees.

The Parent Company declares and pays dividends in Indian rupees. The Finance Act, 2020 in India has repealed Dividend Distribution Tax (DDT). The Companies are now required to pay/ distribute dividend after deducting applicable taxes. The remittance of dividends outside India is governed by Indian law on foreign exchange and is also subject to withholding tax at applicable rates as per Finance Act, 2020.

In the event of liquidation of the Parent Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

c) Aggregate number of bonus shares issued, shares issued for consideration other than cash and shares bought back during the period of five years immediately preceding the reporting date

			(Nos.in Million)
	For the period of five years ended December 31, 2020 No in Million	For the period of five years ended December 31, 2019 No in Million	For the period of five years ended March 31, 2020 No in Million
Equity shares allotted on March 12, 2015	-	40.00	40.00
as fully paid bonus shares by capitalization
of securities premium 400.00 million
Equity shares bought back	3.575	3.575	3.575

Notes forming part of Condensed Interim Consolidated Financial Statements

d) Buyback of Equity Shares of the Parent Company:

The Board of Directors, at its meeting in January 2019, had approved the buyback of the Parent Company -up persons who are in control of the Parent Company

The buyback was offered to all eligible equity shareholders of the Parent Company (other than the Promoters, the Promoter Group and Persons in Control of the Group) under the open market route through the stock exchanges. The buyback of equity shares through the stock exchange commenced on February 8, 2019 and was completed on June 27, 2019. During this buyback period the Parent Company had purchased and extinguished a total of 3,575,000 equity shares from the stock 3/- per equity share comprising 4.47% of the pre buyback paid-up equity share capital of the Parent Company costs). The Parent Company funded the buyback from utilization of its securities premium and free reserves. The total number of equity shares outstanding as on date post buyback stands at 76,425,000.

e) Details of shareholders holding more than 5% shares in the Group

Name of the shareholder*		As at December 31, 2020		As at December 31, 2019	As at March 31, 2020
	No. in million	% Holding	No. in million	% Holding	No. in million	% Holding
Dr. Anand Deshpande jointly with Mrs. Sonali Anand Deshpande	22.96	30.04	22.95	30.04	22.95	30.04
Schemes of HDFC Mutual Fund	6.03	7.89	5.65	7.40	6.53	8.54

including register of shareholders / members.

	La nd -		Co ute mp rs	uip nts eq me	Eq uip nt me	im ts pr ov em en	Fu itu d rn re an

As A il 1 20 20 at pr ,	22 1.3 7	4 2, 45 2.0	2, 45 7.7 7	93 .20	1, 39 9.4 1	45 .92	69 3.1 2	4 7.2	37 0.0 7, 7
Ad dit ion s	-	7 0.5	32 6.3 2	6.5 2	.10 33	-	.48 42	-	40 8.9 9
Dis ls po sa	-	-	47 .28	-	.42 20	0.3 3	0.8 7	-	68 .90
Eff t o f fo rei tra lat ion fro fun cti al ec gn cu rre nc y ns m on to ort ing cu rre nc y rep cu rre nc y	1.2 2	5.4 9	( 9.6 0)	( 0.0 4)	0.6 3	2.9 9	( 0.5 5)	-	0.1 4
As at D be r 3 1, 20 20 ec em	9 22 2.5	0 2, 45 8.1	2, 72 7.2 1	99 .68	1, 41 2.7 2	48 .58	73 4.1 8	4 7.2	7, 71 0.3 0

As at A il 1 20 20 pr ,	-	8 1, 08 3.5	5 2, 09 2.0	80 .57	1, 20 6.2 0	35 .51	64 3.5 1	5 4.0	5, 14 5.4 7
Ch e f the rio d arg or pe	-	.65 74	8 18 4.1	2.5 7	.32 45	4.4 7	.09 32	0 0.7	34 3.9 8
Dis ls po sa	-	-	35 .33	-	.38 20	0.2 5	0.7 6	-	56 .72
Eff f fo rei lat ion fro fun cti al t o tra ec gn cu rre nc y ns m on to ort ing cu rre nc y rep cu rre nc y	-	1.8 2	9.8 0	( 0.0 4)	0.4 4	2.1 4	( 0.9 4)	-	13 .22
As D be r 3 1, 20 20 at ec em	-	1, 16 0.0 5	2, 25 0.7 0	83 .10	1, 23 1.5 8	41 .87	67 3.9 0	4.7 5	44 5.9 5, 5

As at D be r 3 20 20	9 22 2.5	5 29 8.0	47 6.5 1	16 .58	18 1.1 4	6.7 1	.28 60	9 2.4	26 4.3 5
1, ec em As M h 3 1, 20 20 at arc	22 1.3 7	1, 6 1, 36 8.4	36 2 5.7	12 .63	19 3.2 1	10 .41	.61 49	9 3.1	2, 2, 22 4.6 0

	La nd -		Co ute mp rs		Eq uip nt me	im nts pro ve me	Fu rni tur nd e a

As at Ap ril 1 , 20 19	.47 220	.72 2,4 47	2,4 41 .59	89 .63	1,4 08 .24	.23 94	.87 679	4 8.4	7,3 90 .19
Ad diti ons	-	0.3 0	229 .05	0.4 1	26 .33	-	8.6 2	-	264 .71
Ad diti th h b usi bin atio ons rou g nes s c om n	-	-	5.2 3	-	0.0 6	-	-	-	5.2 9
Dis als pos	-	-	292 .67	0.0 3	12. 46	.29 45	7.0 3	-	357 .48
Eff ect of for eig tra nsl atio n fr n c urr enc y om fun ctio nal to ort ing cu rre ncy rep cu rre ncy	0.4 5	1.9 4	35 .54	0.8 8	( 17. 40 )	0.0 1	( 8.7 7)	-	12. 65
As at De be r 3 1, 2 019 cem	.92 220	.96 2,4 49	2,4 18. 74	90 .89	1,4 04 .77	.95 48	.69 672	4 8.4	7,3 15. 36

As Ap ril 1 , 20 19 at	-	.41 983	2,1 60 .36	70 .13	1,1 66 .93	.58 76	.31 597	3 4.2	5,0 58 .95
Ad diti th h b usi bin atio ons rou g nes s c om n	-	-	1.6 9	-	0.0 6	-	-	-	1.7 5
Ch e fo r th erio d arg e p	-	.27 74	162 .39	6.3 5	54 .93	4.9 0	.39 33	0 0.8	337 .03
Dis als pos	-	-	29 1.9 0	0.0 3	12. 13	.29 45	6.9 0	-	356 .25
Eff of for eig nsl atio n fr ect tra n c urr enc y om	-	0.6 7	4.1 8	0.7 8	( 7.0 4)	0.5 7	3.3 8	-	2.5 4
fun ctio nal to ort ing cu rre ncy rep cu rre ncy As at De be r 3 1, 2 019 cem	-	.35 1,0 58	2,0 36 .72	77. 23	1,2 02 .75	76 36.	.18 627	3 5.0	5,0 44 .02

As at De be r 3 019	.92 220	.61 91	382 .02	13. 66	202 .02	19 12.	.51 45	1 3.4	71.
1, 2 cem As at M h 3 1, 2 019 arc	.47 220	1,3 .31 1,4 64	28 1.2 3	19. 50	24 1.3 1	65 17.	82. 56	1 4.2	2,2 34 2,3 31. 24

	La nd -		Co ute mp rs				Fu rni tur nd e a
				uip nts eq me	Eq uip nt me	im nts pro ve me

As at ril 1, 20 19	7 22 0.4	2 2, 44 7.7	9 2, 44 1.5	.63 89	1, 40 8.2 4	94 .23	67 9.8 7	4 8.4	7, 39 0.1 9
Ap Ad dit ion s	-	0 0.3	1 29 4.1	0 0.4	.38 14	-	9.9 1	-	31 9.1 0
Ad dit ion s t hro h b ine mb ina tio ug us ss co n	-	-	3 5.2	-	0.0 6	-	-	-	5.2 9
Dis ls po sa	-	-	0 32 8.8	3 0.0	.10 25	46 .43	7.4 5	0 1.2	40 9.0 1
Eff f fo rei lat ion fro fun ctio l cu t o tra ec gn cu rre nc ns m na rre ncy y ing to ort rep cu rre ncy	0.9	4.0	45	3.2	1.8	( 1.8	10		64 .50
As at M h 3 1, 20 20 arc	7 22 1.3	4 2, 45 2.0	7 2, 45 7.7	.20 93	1, 39 9.4 1	45 .92	69 3.1 2	4 7.2	7, 37 0.0 7

As at Ap ril 1, 20 19		98 3.4 1	2, 16 0.3	70	1, 16 6.9	76	59 7.3	4.2	5, 05 8.9 5
Ad dit ion s t hro h b ine mb ina tio ug us ss co n Ch e f the	-	- .93 98	9 1.6 2 23 4.7	- 6 8.1	0.0 6 .02 59	- 6.6 2	- .88 44	- 2 1.0	1.7 5 45 3.3 5
arg or ye ar Dis ls sa	-		0 32 8.8	3 0.0	.78 20	46 .43	7.3 0	0 1.2	40 4.5 4
po Eff t o f fo rei tra lat ion fro fun ctio l cu ec gn cu rre nc y ns m na rre ncy to ort ing rep cu rre ncy	- -	- 1.2 4	.08 24	1 2.3	0.9 7	( 1.2 6)	8.6 2	-	35 .96
As at M h 3 1, 20 20 arc	-	8 1, 08 3.5	5 2, 09 2.0	.57 80	1, 20 6.2 0	35 .51	64 3.5 1	5 4.0	5, 14 5.4 7


As at M h 3 20 20 arc	7 22 1.3	6 36 8.4	2 36 5.7	.63 12	19 3.2 1	10 .41	.61 49	9 3.1	22 4.6 0
1, M h 3 1, 20 19 at arc	22 0.4 7	1, 1 1, 46 4.3	3 28 1.2	.50 19	24 1.3 1	17 .65	.56 82	1 4.2	2, 2, 33 1.2 4
As
		( Th is s pa	is i nte nti ce on	ft b k) ally le lan







						0 2 .64 0 3	8)	.79	-



						6 .13 3 -	.58	1 3

Persistent Systems Limited





As at April 1, 2020	37.50	796.75	834.25
Additions during the period	-	566.88	566.88
Acquistion Disposals	- -	2.52 165.16	2.52 165.16
Effect of foreign currency translation of foreign operations from functional currency to reporting currency	-	9.84	9.84
As at December 31, 2020	37.50	1,210.83	1,248.33

As at April 1, 2020	0.60	266.84	267.44
Acquisition Charge for the period	- 0.44	0.08 186.76	0.08 187.20
Disposals Effect of foreign currency translation of foreign operations	- -	121.98 1.31	121.98 1.31
from functional currency to reporting currency
As at December 31, 2020	1.04	333.01	334.05
As at December 31, 2020
As at March 31, 2020	36.46 36.90	877.82 529.91	914.28 566.81



As at April 1, 2019	-	-	-
Additions (Transitional impact on adoption of Ind AS 116) Additions during the period	37.50 -	722.51 32.62	760.01 32.62
Disposals	-	9.35	9.35
Effect of foreign currency translation of foreign operations from functional currency to reporting currency	-	13.97	13.97
As at December 31, 2019	37.50	759.75	797.25

As at April 1, 2019 Charge for the period	- 0.45	- 194.05	- 194.50
Disposals Effect of foreign currency translation of foreign operations	- -	1.08 1.19	1.08 1.19
from functional currency to reporting currency
As at December 31, 2019	0.45	194.16	194.61

As at December 31, 2019	37.05	565.59	602.64

Persistent Systems Limited



As at April 1, 2019 Additions (Transitional impact on adoption of Ind AS 116)	- 37.50	- 722.51	- 760.01
Additions during the year	-	77.80	77.80
Disposals Effect of foreign currency translation of foreign operations	- -	9.35 5.79	9.35 5.79
from functional currency to reporting currency As at March 31, 2020	37.50	796.75	834.25

As at April 1, 2019	-	-	-
Charge for the year	0.60	260.73	261.33
Disposals Effect of foreign currency translation of foreign operations	- -	1.12 7.23	1.12 7.23
from functional currency to reporting currency As at March 31, 2020	0.60	266.84	267.44

As at March 31, 2020	36.90	529.91	566.81


	As at December 31, 2020	As at December 31, 2019	As at March 31, 2020
Cost
	88.94	81.24	81.24
Additional amounts recognised from business combinations Effect of foreign currency translation of foreign operations	128.07 (7.97)	6.77 2.91	- 7.70
from functional currency to reporting currency
	209.04	90.92	88.94



		rights
As at April 1, 2020 Additions	2,779.57 161.48	5,214.42 254.12	7,993.99 415.60
Additions through business combination (refer note 37)	-	251.77	251.77
Effect of foreign currency translation of foreign operations from functional currency to reporting currency	(52.53)	(83.41)	(135.94)
As at December 31, 2020	2,888.52	5,636.90	8,525.42

As at April 1, 2020	2,732.72 43.94	3,826.34 805.27	6,559.06 849.21
Charge for the period

	88.94	81.24	81.24
Additional amounts recognised from business combinations	128.07	6.77	-
Effect of foreign currency translation of foreign operations
from functional currency to reporting currency

Effect of foreign currency translation of foreign operations
from functional currency to reporting currency









	88.94	81.24	81.24
Additional amounts recognised from business combinations	128.07	6.77	-
Effect of foreign currency translation of foreign operations
from functional currency to reporting currency
	209.04	90.92	88.94





		rights

As at April 1, 2020	2,779.57	5,214.42	7,993.99
Additions	161.48	254.12	415.60
Additions through business combination (refer note 37)	-	251.77	251.77
Effect of foreign currency translation of foreign operations	(52.53)	(83.41)	(135.94)
from functional currency to reporting currency
As at December 31, 2020	2,888.52	5,636.90	8,525.42

As at April 1, 2020	2,732.72	3,826.34	6,559.06
Charge for the period	43.94	805.27	849.21
Effect of foreign currency translation of foreign operations	(53.15)	52.87	(0.28)
from functional currency to reporting currency

As at December 31, 2020	2,723.51	4,684.48	7,407.99

As at December 31, 2020	165.01	952.42	1,117.43
As at March 31, 2020	46.85	1,388.08	1,434.93

		(This space is intentionally left blank)

Persistent Systems Limited


		rights
As at April 1, 2019 Additions	2,575.58 22.67	4,208.58 97.75	6,784.16 120.42
Additions through business combination Effect of foreign currency translation of foreign operations	- 64.66	525.63 85.82	525.63 150.48
from functional currency to reporting currency
As at December 31, 2019	2,662.91	4,917.78	7,580.69

As at April 1, 2019 Charge for the period	2,479.52 68.49	2,709.23 639.80	5,188.75 708.29
Effect of foreign currency translation of foreign operations from functional currency to reporting currency	59.25	(41.85)	17.40
As at December 31, 2019	2,607.26	3,307.18	5,914.44

As at December 31, 2019 As at March 31, 2019	55.65 96.06	1,610.60 1,499.35	1,666.25 1,595.41

		rights

As at April 1, 2019 Additions	2,575.58 30.88	4,208.58 97.75	6,784.16 128.63
Additions through business combination Effect of foreign currency translation of foreign operations	- 173.11	527.31 380.78	527.31 553.89
from functional currency to reporting currency
As at March 31, 2020	2,779.57	5,214.42	7,993.99

As at April 1, 2019 Charge for the year	2,479.52 80.84	2,709.23 864.10	5,188.75 944.94
Effect of foreign currency translation of foreign operations from functional currency to reporting currency	172.36	253.01	425.37
As at March 31, 2020	2,732.72	3,826.34	6,559.06

As at March 31, 2020 As at March 31, 2019	46.85 96.06	1,388.08 1,499.35	1,434.93 1,595.41

		For the quarter ended	For the nine months ended		For the year ended
On Property, Plant and Equipment	December 31, 2020 119.40	December 31, 2019 111.06	December 31, 2020 343.98	December 31, 2019 337.03	March 31, 2020 453.35
On Right of use assets	65.15	66.73	187.20	194.50 708.29	261.33 944.94
On Other Intangible assets	276.50	250.65	805.27

from functional currency to reporting currency

				For the year ended




461.05	428.44	1,336.45	1,239.82	1,659.62

Persistent Systems Limited


	As at December 31, 2020	As at December 31, 2019	As at March 31, 2020
Investments carried under equity accounting method
Unquoted Investments Investments in equity instruments

	0.05	0.05	0.05
Less : Impairment of non-current unquoted investments	(0.05)	(0.05)	(0.05)
	-	-	-
	-	-	-
Investments carried at amortised cost Quoted Investments
In bonds	2,593.95	1,989.37	2,171.52
Add: Interest accrued on bonds	87.33 2,681.28	75.04 2,064.41	68.69 2,240.21

Quoted Investments
Fair value of long term mutual funds (refer Note 7a)	953.26 953.26	1,524.30 1,524.30	2,174.51 2,174.51
Unquoted Investments
- Others*

0.01 each, fully paid up Less : Impairment of non-current unquoted investments	14.98 (14.98)	14.37 (14.37)	14.36 (14.36)
Altizon Systems Private Limited	- 6.00	- 6.00	- 6.00

	6.00	6.00	6.00
Hygenx, Inc. of \$ 0.001 each, fully paid up	14.61	14.28	15.13
Less : Impairment of non-current unquoted investments	(14.61) -	(14.28) -	(15.13) -
OpsDataStore, Inc.	14.61	14.28	15.13
of \$ 0.001 each, fully paid up Less : Impairment of non-current unquoted investments	(14.61)	(14.28)	(15.13)
Trunomi, Inc.	- 18.27	- 17.84	- 18.92
of \$ 0.002 each, fully paid up
Ampool, Inc.	18.27	17.84	18.92
of \$ 0.4583 each, fully paid up Less : Impairment of non-current unquoted investments	(18.27)	-	-
	-	17.84	18.92
Cazena, Inc. 0.59 million Common Stock of \$ 0.0001 each (Corresponding period: 0.35 million	146.12	142.75	151.33
\$ 0.0001 each) , fully paid up

Persistent Systems Limited


	As at	As at	As at
	December 31, 2020	December 31, 2019	March 31, 2020



DxNow	9.13	8.92	9.46
each, fully paid up
Less : Impairment of non-current unquoted investments	(9.13)	(8.92)	(9.46)
	-	-	-
Ustyme	18.27	17.84	18.92
each, fully paid up
Less : Impairment of non-current unquoted investments	(18.27)	(17.84)	(18.92)
	-	-	-
Akumina, Inc.	10.70	10.45	11.08
each, fully paid up
	10.70	10.45	11.08
	1,134.350	1,719.18	2,380.76
	3,815.63	3,783.59	4,620.97

	89.92 3,634.54	69.74 3,588.71	73.05 4,414.72
* Investments, where the Group does not have joint-control or significant influence including situations where such joint-control or significant influence is	271.01	264.62	279.30

	As t a De be 3 1, 2 0 2 0 ce m r	As t a De be 3 1, 2 0 1 9 ce m r	As a Ma h 3 1, 2 0 2 0 rc

Ax is Mu tua l Fu d n	4 9 8. 6 4	5 3 5. 7 1	8 9 8. 9 3
I D F C Mu l Fu d tua n	4 1 8. 8 7	3 1 9. 7 5	6 3 0. 0 6
U T I Mu tua l Fu d n	-	1 0 3. 7 8	1 0 5. 7 3
Ko ta k Mu tua l Fu d n	-	1 3 9. 0 4	1 0 5. 8 6
Su da Mu l Fu d tua n ram n	3 5. 8 4	3 2. 4 7	3 3. 1 5
I C I C I Pr de t ia l Mu tua l Fu d n n u	-	1 3 8. 7 5	1 4 1. 3 8
D S P Mu l Fu d tua n	-	3 4. 4 0	3 0 0 5.
P G I M In d ia Mu tua l Fu d ( for ly kn D H F L Pr ica Mu tua l Fu d ) n me r ow n a s am er n	-	3 4. 3 7	3 5. 0 3
A d i ty B ir la Su L i fe Mu tua l Fu d a n n	-	8 1. 2 0	8 2. 6 5
S B I Mu l Fu d tua n	-	6 9. 8 2	1. 0 6 7
H D F C Mu tua l Fu d n	-	3 5. 0 1	3 5. 6 6
	9 5 3. 2 6	1, 5 2 4. 3 0	2, 1 7 4. 5 1
( T h is is in ten sp ac e	t ion l ly le f t b lan k ) a

Persistent Systems Limited


	As at December 31, 2020	As at December 31, 2019	As at March 31, 2020

Carried at amortised cost Security deposits
Unsecured, considered good	203.22 203.22	158.56 158.56	176.13 176.13

Loan to others (Unsecured, considered good) Loan to LHS Solutions, Inc.	-	-	24.28
Less: Impairment	- -	- -	- 24.28

Unsecured, considered good - Deposits Unsecured, credit impaired	-	-	-
	0.58 0.58	0.58 0.58	0.58 0.58
Less: Impairment of non-current loans	(0.58) -	(0.58) -	(0.58) -
	203.22	158.56	200.41

	As at	As at	As at
	December 31, 2020	December 31, 2019	March 31, 2020
Non-current bank balances (refer note 15) Add: Interest accrued but not due on non-current bank deposits	43.92	444.81	344.55
(refer note 15)	0.87 44.79	6.89 451.70	14.38 358.93
Deposits with financial institutions	430.00	430.00	430.00
Add: Interest accrued on deposit with financial institutions	0.98	0.98	0.98
Less: Credit impaired (refer note 34)	(430.98) -	(382.50) 48.48	(430.98) -
	44.79	500.18	358.93


	As at	As at	As at

Loan to others (Unsecured, considered good)


	-	-	24.28





	-	-	-






Non-current bank balances (refer note 15)	43.92	444.81	344.55
Add: Interest accrued but not due on non-current bank deposits
(refer note 15)	0.87	6.89	14.38




	-	48.48	-
	44.79	500.18	358.93


	As at	As at	As at
	December 31, 2020	December 31, 2019	March 31, 2020


Differences in book values and tax base values of block of Property, Plant and Equipment and intangible assets	-	137.13	120.96
Capital gains	69.83	73.40	76.67
Others	75.17	9.76	21.63

	-	-	-





Non-current bank balances (refer note 15)	43.92	444.81	344.55
Add: Interest accrued but not due on non-current bank deposits
(refer note 15)	0.87	6.89	14.38



	-	48.48	-
	44.79	500.18	358.93


	As at	As at	As at
	December 31, 2020	December 31, 2019	March 31, 2020


Differences in book values and tax base values of block of Property, Plant and	-	137.13	120.96
Equipment and intangible assets
Capital gains Others	69.83 75.17	73.40 9.76	76.67 21.63
	145.00	220.29	219.26

Provision for leave encashment	176.23	130.67	127.70
Provision for long service awards	103.61	106.98	83.27
Provision for doubtful debts	96.46	95.29	62.50
Provision for gratuity	2.77	2.61	2.86
Differences in book values and tax base values of block of Property, Plant and Equipment and intangible assets	104.40	86.89	91.81
	66.32	69.51	112.94
Tax credits	294.40	285.52	328.80
Difference in Book values and tax base values of ROU asset and Lease liability	33.71	40.94	37.29
Others	272.34	167.24	332.17
	1,150.24	985.65	1,179.34

	- 1,005.24	- 765.36	- 960.08

* Deferred tax assets and deferred tax liabilities have been offset wherever the Group has a legally enforceable right to set off current tax assets against current tax liabilities and where the deferred tax assets and deferred tax liabilities other cases the same have been separately disclosed.	relate to income taxes	levied by the same	taxation authority. In all
11. Other non-current assets

	As at December 31, 2020	As at December 31, 2019	As at March 31, 2020
Capital advances (Unsecured, considered good)	10.62	-	27.14
Balances with government authorities (refer note 33)	296.55	296.55	296.55
Advances recoverable in cash or kind or for value to be received	32.03	0.20	7.62


(This space is intentionally left blank)
	339.20	296.75	331.31

Capital advances (Unsecured, considered good)	10.62	-	27.14
Balances with government authorities (refer note 33)	296.55	296.55	296.55
Advances recoverable in cash or kind or for value to be received	32.03	0.20	7.62

	As at	As at	As at
	December 31, 2020	December 31, 2019	March 31, 2020
	In ₹ Million	In ₹ Million	In ₹ Million
Designated as fair value through profit and loss
- Quoted investments
Investments in mutual funds
Fair value of current mutual funds (refer Note 12a)	5.629.40	2.309.43	5,164.77
	5,629.40	2,309.43	5,164.77
Total carrying amount of investments	5,629.40	2.309.43	5,164.77
Aggregate amount of quoted investments Aggregate amount of unguoted investments	5,629.40	2,309.43 $\blacksquare$	5,164.77

	As t a De be 3 1, 2 0 2 0 ce m r	As t a De be 3 1, 2 0 1 9 ce m r	As a Ma h 3 1, 2 0 2 0 rc

Qu te d inv tm ts o es en -
Fa ir v lue f c l fu ds ( fe No 1 2a ) t m tua te a o urr en u n re r	6 2 9. 4 0 5,	2, 3 0 9. 4 3	1 6 4. 5, 7 7
	5, 6 2 9. 4 0	2, 3 0 9. 4 3	5, 1 6 4. 7 7

	5, 6 2 9. 4 0	2, 3 0 9. 4 3	5, 1 6 4. 7 7
	5, 6 2 9. 4 0	2, 3 0 9. 4 3	5, 1 6 4. 7 7
	-	-	-

	As t a	As t a	As a
	De be 3 1, 2 0 2 0 ce m r	De be 3 1, 2 0 1 9 ce m r	Ma h 3 1, 2 0 2 0 rc
C C I I I Pr de t ia l Mu tua l Fu d u n n	8 1 5 7. 4	1. 0 3 4 5	9 0. 0 4 5
A d i ty B ir la Su L i fe Mu tua l Fu d a n n	7 4 7. 6 3	4 3 2. 2 9	9 7 3. 0 4
Ax is Mu l Fu d tua n	6 9 6. 5 4	2 0 8. 2 8	3 9 6. 0 2
U T I Mu tua l Fu d n	6 8 6. 8 3	1 2 0. 3 9	8 0 9. 4 6
Ko ta k Mu tua l Fu d n I D F C Mu l Fu d tua n	6 8 5. 1 7 3 8 2. 3 6	1 7 4. 4 8 4 2 9. 6 5	4 2 1. 5 1 6 4 0. 7 8
C H D F Mu tua l Fu d n	8 2 2. 8 8	1 8 3. 6	1 8 5. 8 8
D S P Mu tua l Fu d n	6 5. 1 6	-	-
S B I Mu l Fu d tua n	1 6 5. 1 0	-	-
& L T Mu tua l Fu d n P G I M In d ia Mu tua l Fu d ( fo ly kn D H F L Pr ica Mu tua l Fu d ) n rm er ow n a s am er n	4 8 3. 4 0 3 6. 9 2	2 4 7. 9 3 -	7 3 4. 9 0 -
N ip In d ia Mu l Fu d ( fo ly kn Re l ian Mu l Fu d ) tua tua p on n rm er ow n a s ce n	-	6 1. 7 3	6 2. 6 8
	5, 6 2 9. 4 0	2, 3 0 9. 4 3	5, 1 6 4. 7 7
( T h is is in ten t ion l sp ac e a	ly le f t b lan k )		5

Persistent Systems Limited



	As at

		As at	As at
	December 31, 2020	December 31, 2019	March 31, 2020
Unsecured, considered good	6,237.39	5,511.94	5,921.96
Unsecured, credit impaired	270.46	203.55	242.13
	6,507.85	5,715.49	6,164.09
Less : Allowance for credit loss	(270.46)	(203.55)	(242.13)
	6,237.39	5,511.94	5,921.96
	6,237.39	5,511.94	5,921.96


	As at	As at	As at
	December 31, 2020	December 31, 2019	March 31, 2020


Cash in hand	0.27	0.26	0.24
Cheques on hand	-	0.28	-
Balances with banks

Persistent Systems Limited









	6,237.39	5,511.94	5,921.96

	6,237.39	5,511.94	5,921.96


	As at	As at	As at
	December 31, 2020	December 31, 2019	March 31, 2020


Cash in hand Cheques on hand	0.27 -	0.26 0.28	0.24 -
Balances with banks
On current accounts *	1,519.47	1,177.34	1,566.06
On saving accounts	10.27	7.26	0.36
On Exchange Earner's Foreign Currency accounts	277.92	273.03	261.86
On deposit accounts with original maturity less than three months	221.15	-	71.47
	2,029.08	1,458.17	1,899.99

	As at	As at	As at
	December 31, 2020	December 31, 2019	March 31, 2020

Deposits with banks*	7,297.10	5,889.25	2,909.58
Add: Interest accrued but not due on deposits with banks	262.67	183.19	117.49
Deposits with banks (carried at amortised cost)	7,559.77	6,072.44	3,027.07
Less: Deposits with maturity more than twelve months from the balance sheet date disclosed under other non-current financial assets (refer note 9)	(43.92)	(444.81)	(344.55)
Less: Interest accrued but not due on non-current deposits with banks (refer note 9)	(0.87)	(6.89)	(14.38)

Deposits with banks*	7,297.10	5,889.25	2,909.58
Add: Interest accrued but not due on deposits with banks	262.67	183.19	117.49
Deposits with banks (carried at amortised cost) Less: Deposits with maturity more than twelve months from the balance sheet date disclosed under other non-current financial assets (refer note 9)	7,559.77 (43.92)	6,072.44 (444.81)	3,027.07 (344.55)
Less: Interest accrued but not due on non-current deposits with banks (refer note 9)	(0.87)	(6.89)	(14.38)

Balances with banks on unpaid dividend accounts** - Earmarked balances with banks	7,514.98 2.84	5,620.74 2.42	2,668.14 4.05

against credit facilities and bank guarantees availed by the Parent Company.

** The Group can utilize these balances only towards settlement of the respective unpaid dividend.

Persistent Systems Limited


	As at	As at	As at
	December 31, 2020	December 31, 2019	March 31, 2020
Carried at amortised cost			-
Unsecured, considered good - Deposits Long term	-	-	-
Klisma e-Services Private Limited	27.43 27.43	27.43 27.43	27.43 27.43
Less: Impairment of current loans	(27.43)	(27.43)	(27.43)
Loan to others (Unsecured, considered good)	-	-	-
Loan to LHS Solutions, Inc.	21.90	-	-
Interest accrued but not due at amortised cost Less: Impairment	1.72 (23.62)	- -	- -
	-	-	-
Security deposits
Unsecured, considered good - Deposits Long term	0.24 0.24	2.21 2.21	13.71 13.71



	As at	As at	As at
	December 31, 2020	December 31, 2019	March 31, 2020

Forward contracts receivable	290.05	45.26	-

Unsecured, credit impaired	0.81	0.81	0.81
Less: Impairment of current financial assets	(0.81)	(0.81)	(0.81)

Carried at amortised cost			-

Unsecured, considered good - Deposits Long term	-	-	-
Klisma e-Services Private Limited	27.43	27.43	27.43
	27.43	27.43	27.43

	-	-	-
Loan to others (Unsecured, considered good)
Loan to LHS Solutions, Inc.	21.90	-	-


	-	-	-

Security deposits

Unsecured, considered good - Deposits Long term	0.24	2.21	13.71
	0.24	2.21	13.71





Forward contracts receivable	290.05	45.26	-

Unsecured, credit impaired	0.81	0.81	0.81
Less: Impairment of current financial assets	(0.81)	(0.81)	(0.81)
	-	-	-

Deposits with financial institutions	-	-	-

Add: Interest accrued but not due on deposits with financial institutions	-	-	-
Less: Allowance for expected credit loss	-		-
Deposits with financial institutions (Carried at amortised cost)	-	-	-

Other advances	20.87	-	-

Unbilled revenue	2,238.98	2,275.82	2,068.54
	2,549.90	2,321.08	2,068.54


18. Other current assets
	As at	As at	As at
	December 31, 2020	December 31, 2019	March 31, 2020



Advances recoverable in cash or kind or for value to be received	528.70	713.85	907.69

Excess fund balance with Life Insurance Corporation	68.08	103.85	128.54


Other advances (Unsecured, considered good)
(net)	-	13.16	31.50
	965.36	838.79	858.51
Service tax and GST receivable (net) (refer note 33)	965.36	851.95	890.01


	1,562.14	1,669.65	1,926.24




965.36	851.95	890.01
1,562.14	1,669.65	1,926.24

Persistent Systems Limited


	As at	As at	As at
	December 31, 2020	December 31, 2019	March 31, 2020
Unsecured Borrowings carried at amortised cost Term loans
Indian rupee loan from others	8.75	13.34	11.93
Interest accrued but not due on term loans Foreign currency loan from others	0.06 41.50	0.09 -	0.18 39.14
	50.31	13.43	51.25
Less: Current maturity of long-term borrowings transferred to other current financial liabilities (refer note 23)	(3.21)	(4.85)	(4.85)
Less: Current maturity of interest accrued but not due on term loan transferred to other current financial liabilities (refer note 23)	(0.06)	(0.09)	(0.18)
	(3.27)	(4.94)	(5.03)
	47.04	8.49	46.22
The term loans from Government departments have the following terms and conditions:
Loan I - amounting to 1.34 million (Corresponding period 4.10 million Previous year 2.69	million) with interest payable	@ 2% per annum has	been guaranteed by a
bank guarantee by the Group and is repayable in ten equal semi annual installments over a period of five years commencing from September 2016.
Loan II - amounting to 7.41 million (Corresponding period 9.24 million Previous year 9.24 annual installments over a period of ten years commencing from October 2015.	million) with Interest payable	@ 3% per annum	repayable in ten equal
Loan III - amounting to 41.50 million (Corresponding period Nil Previous year 39.14 million). and small scale Industries by the Government of Switzerland to a subsidiary company with a repayment period of five years from March 2020.	The interest free loan is	given under a Covid-19	scheme for medium

	As at December 31, 2020	As at December 31, 2019	As at March 31, 2020

Lease liabilities Less: Current portion of lease liabilities (refer note 23)	1,006.50 (229.31)	714.01 (305.76)	662.42 (309.06)
	777.19	408.25	353.36



	For the Nine Months Ended December 31, 2020	December 31, 2019	For the year ended March 31, 2020

note 23)	(3.21)	(4.85)	(4.85)
Less: Current maturity of interest accrued but not due on term loan transferred to other current financial liabilities (refer note 23)	(0.06)	(0.09)	(0.18)
	(3.27)	(4.94)	(5.03)
	47.04	8.49	46.22
The term loans from Government departments have the following terms and conditions:
bank guarantee by the Group and is repayable in ten equal semi annual installments over a period of five years commencing from September 2016.
annual installments over a period of ten years commencing from October 2015.
and small scale Industries by the Government of Switzerland to a subsidiary company with a repayment period of five years from March 2020.





	777.19	408.25	353.36

	For the Nine Months Ended		For the year ended
	December 31, 2020	December 31, 2019	March 31, 2020

Opening balance	662.42	-	-
Additions (Transitional impact on adoption of Ind AS 116)	-	888.90	811.10
Additions	566.88	-	77.80
Deletions	(56.77)	-	-
	41.62	48.29	61.22
Translation difference	39.46
Less: Payments made	247.11 1,006.50	223.18 714.01	287.70 662.42

	As at	As at	As at
	December 31, 2020	December 31, 2019	March 31, 2020

Provision for employee benefits
		-	-
- Gratuity	45.05
- Long service awards	240.67 285.72	189.65 189.65	182.79 182.79

Provision for employee benefits
- Gratuity	45.05	-	-
- Long service awards	240.67	189.65	182.79
	285.72	189.65	182.79

Persistent Systems Limited



	As at	As at	As at
	December 31, 2020	December 31, 2019	March 31, 2020

Trade payables for goods and services	2,276.67	1,822.41	2,247.09


Disclosure of payable to vendors as defined under the "Micro, Small and Medium Enterprise	2,276.67 Development Act, 2006" is based	1,822.41 on the information available	2,247.09 with the Parent
Company regarding the status of registration of such vendors under the said Act, as per the	intimation received from them	on requests made by the	Parent Company.
There are no overdue principal amounts interest payable amounts for delayed payments to	such vendors at the Balance	Sheet date. There are no	delays in payment
made to such suppliers during the period or for any earlier periods years and accordingly	there is no interest paid or	outstanding interest in this	regard in respect of



	As at	As at	As at
	December 31, 2020	December 31, 2019	March 31, 2020

Capital creditors	5.11	17.90	36.24
Current maturity of long-term borrowings (refer note 19)	3.21	4.85	4.85
Current maturity of interest on long-term borrowings (refer note 19)	0.06	0.09	0.18

Persistent Systems Limited




Trade payables for goods and services	2,276.67	1,822.41	2,247.09
	2,276.67	1,822.41	2,247.09

	As at	As at	As at
	December 31, 2020	December 31, 2019	March 31, 2020
Capital creditors	5.11	17.90	36.24
Current maturity of long-term borrowings (refer note 19)	3.21	4.85	4.85
Current maturity of interest on long-term borrowings (refer note 19)	0.06	0.09	0.18
Accrued employee liabilities	143.12	66.82	421.17
Unpaid dividend* Other liabilities	2.84 -	2.42 -	4.05 7.96
Payable to selling shareholders	11.91

Forward contracts payable	-	-	387.89
	166.25	92.08	862.34
* Unpaid dividend is transferred to Investor Education and Protection Fund as and when due.


	As at	As at	As at
	December 31, 2020	December 31, 2019	March 31, 2020

Unearned revenue	1,035.62	893.94	887.20
Advance from customers	796.20	-	264.82
Other payables - Statutory liabilities	264.09	285.86	157.19
- Other liabilities	31.91	1.70	10.92
	2,127.82	1,181.50	1,320.13

	As at	As at	As at
	December 31, 2020	December 31, 2019	March 31, 2020

Provision for employee benefits
- Gratuity	0.87	-	20.41
- Leave encashment - Long service awards - Short term provisions	777.12 22.86	629.69 18.65	638.05 21.35


- Other employee benefits	1,341.75 2,142.60	697.40 1,345.74	931.18 1,610.99

	166.25	92.08	862.34
* Unpaid dividend is transferred to Investor Education and Protection Fund as and when due.





Other payables








Provision for employee benefits
- Gratuity	0.87	-	20.41
- Leave encashment	777.12	629.69	638.05
- Long service awards - Short term provisions	22.86	18.65	21.35
- Other employee benefits	1,341.75 2,142.60	697.40 1,345.74	931.18 1,610.99






2,142.60	1,345.74	1,610.99

Persistent Systems Limited




	For the quarter ended		For the nine months ended		For the year ended
	December 31, 2020	December 31, 2019	December 31, 2020	December 31, 2019	March 31, 2020

Software services	9,826.41	8,937.96	29,370.01	25,381.93	34,494.34
Software licenses	927.57	289.33	1,375.29	1,012.50	1,163.74
	10,753.98	9,227.29	30,745.30	26,394.43	35,658.08
27. Other income

	For the quarter ended December 31, 2020	December 31, 2019	For the nine months ended December 31, 2020	December 31, 2019	For the year ended March 31, 2020

Persistent Systems Limited



		For the quarter ended	For the nine months ended		For the year ended

Software services	9,826.41	8,937.96	29,370.01	25,381.93	34,494.34
Software licenses	927.57	289.33	1,375.29	1,012.50	1,163.74
	10,753.98	9,227.29	30,745.30	26,394.43	35,658.08
27. Other income
		For the quarter ended	For the nine months ended		For the year ended
	December 31, 2020	December 31, 2019	December 31, 2020	December 31, 2019	March 31, 2020

Interest income
On deposits carried at amortised cost On Others	101.06 45.40	104.41 44.07	276.78 126.54	302.83 125.17	389.59 155.69
	(1.74)	102.10	(139.96)	319.85	364.35
Profit on sale of Property, Plant and Equipment (net)	3.44	(0.01)	7.09	0.49	-
Dividend income from investments	-	-	-	13.95	13.98
Profit on sale of investments (net)	35.81 46.96	8.78 57.72	413.37 (127.23)	152.95 37.25	164.81 119.02

	22.66	(0.01)	29.23	4.59	6.95
written back Miscellaneous income	46.53	30.69	91.54	73.49	109.38
	300.12	347.75	677.36	1,030.57	1,323.77


		For the quarter ended	For the nine months ended		For the year ended
	December 31, 2020	December 31, 2019	December 31, 2020	December 31, 2019	March 31, 2020

Salaries, wages and bonus	6,314.37	5,457.67	17,162.44	14,914.50	19,594.62
Contribution to provident and other funds	(142.86)	(77.19)	585.36	398.98	1,199.20
Staff welfare and benefits Share based payments to employees	114.26 136.41	142.01 71.98	312.64 243.65	401.61 165.34	525.79 236.79
	6,422.18	5,594.47	18,304.09	15,880.43	21,556.40
	1,318.68	998.71	4,020.55	2,755.71	3,918.94
	7,740.86	6,593.18	22,324.64	18,636.14	25,475.34

	For the quarter ended	For the nine months ended		For the year ended







6,422.18	5,594.47	18,304.09	15,880.43	21,556.40
1,318.68	998.71	4,020.55	2,755.71	3,918.94
7,740.86	6,593.18	22,324.64	18,636.14	25,475.34

29. Other expenses

Persistent Systems Limited


29. Other expenses
	For the quarter ended		For the nine months ended		For the year ended
	December 31, 2020	December 31, 2019	December 31, 2020	December 31, 2019	March 31, 2020

Travelling and conveyance	29.22	214.62	144.02	718.64	936.86
Electricity expenses (net)	21.61	30.18	62.34	90.38	114.94
Internet link expenses	18.23	11.09	55.62	47.81	73.30
Communication expenses Recruitment expenses	23.23 56.89	25.58 23.86	89.23 103.47	76.88 94.04	105.72 128.80
Training and seminars	30.52	13.56	48.78	23.67	34.63
Royalty expenses	14.40	16.33	53.76	51.32	76.82
Purchase of software licenses	576.96	540.75	1,525.66	1,391.43	1,724.51
Bad debts	85.52	-	85.52	-	-
Provision for doubtful receivables (net)	(74.25)	15.35	31.37	45.08	83.86
Rent Insurance	34.94 9.63	32.73 8.06	107.21 29.49	97.56 23.47	135.25 34.49
Rates and taxes	24.71	17.19	72.75	65.15	88.07
Legal and professional fees	138.14	134.25	379.43	447.07	517.13

Repairs and maintenance	31.16	32.09	83.06	93.23	123.04
- Plant and Machinery			16.95	21.04	24.10
- Buildings	4.80	8.25
- Others	2.01	4.67	16.95	14.62	21.60
Selling and marketing expenses	1.79	7.51	6.39	10.31	7.85
Advertisement, conference and sponsorship fees Discount allowed	63.04 -	59.37 107.27	98.44	153.77 107.27	191.01 -
Computer consumables	1.75	1.89	3.57	5.73	7.01
Auditors' remuneration	4.35	2.27	12.18	12.35	18.89
Donations (refer note 32A)	35.16	18.84	202.16	56.65	86.35
Books, memberships, subscriptions	4.98	7.22	16.19	27.31	38.05
Loss on sale of Property, Plant and Equipment	-	-		-	5.96
Directors' sitting fees	1.00	1.18	3.66	4.70	6.58
Directors' commission	2.36	3.60	7.86	11.25	14.85
Provision for doubtful deposits and advances Impairment of non current investments	24.09 (0.11)	50.00 -	24.09 18.63	200.00 -	248.48 -
Miscellaneous expenses	22.21	11.20	175.03	213.68	412.00

30. Earnings per share

Persistent Systems Limited

30. Earnings per share
			For the quarter ended	For the nine months ended		For the year ended
		December 31, 2020	December 31, 2019	December 31, 2020	December 31, 2019	March 31, 2020

			879.26	3,129.18	2,564.68	3,402.89
	(A)	1,209.24

Weighted average number of equity shares	(B)	76,425,000	76,425,000	76,425,000	76,770,600

Number of equity shares	(C)	76,425,000	76,425,000	76,425,000	76,770,600
						76,684,672 76,684,672
		15.82	11.50	40.94	33.41

		15.82	11.50	40.94	33.41

		December 31, 2020	For the quarter ended December 31, 2019	For the nine months ended December 31, 2020	December 31, 2019	44.38 44.38 For the year ended March 31, 2020
Number of shares considered as basic weighted average shares		76,425,000	76,425,000	76,425,000	76,770,600	76,684,672
outstanding						-
Add: Effect of dilutive issues of stock options		- 76,425,000	- 76,425,000	- 76,425,000	- 76,770,600	76,684,672

As at D mb er 3 1, 2 020 As at D mb er 3 1, 2 019 As at M h 3 1, 2 020 ece ece arc ets : s in uity ins refe rred ck a nd tible Fai lue .09 181 .09 181 .88 194 .88 194 .25 206 .25 206 Lev el 3 stm ent trum ent sto tes eq s, p con ver no r va s in bo nds * Am orti sed 28 2,6 81. 74 2,8 11. 41 2,0 64. 2,0 51. 21 2,2 40. 2,2 36. 81 stm ent st 77 co s in l fu nds Fai lue 66 6,5 82. 66 6,5 82. 73 3,8 33. 73 3,8 33. 28 7,3 39. 28 7,3 39. Lev el 1 stm ent tua mu r va Am orti sed st .46 203 .46 203 .77 160 .77 160 .12 214 214 .12 ns co it w ith ban ks a nd fina ncia l ins titu tion s (n et) Am orti sed st 77 7,5 59. 77 7,5 59. 92 6,1 20. 92 6,1 20. 07 3,0 27. 3,0 27. 07 co and sh iva lent s (i nclu din id d ivid end ) Am orti sed st 92 2,0 31. 92 2,0 31. 59 1,4 60. 59 1,4 60. 04 1,9 04. 1,9 04. 04 ca equ g u npa co eiv abl (ne t) Am orti sed st 39 6,2 37. 39 6,2 37. 94 5,5 11. 94 5,5 11. 96 5,9 21. 5,9 21. 96 rec es co dva Am orti sed st 87 20. 87 20. nce s co - - - - illed Am orti sed st 98 2,2 38. 98 2,2 38. 82 2,2 75. 82 2,2 75. 54 2,0 68. 2,0 68. 54 rev enu e co rd c ont ts r iva ble Fai lue .05 290 .05 290 26 45. 26 45. Lev el 2 rac ece s r va - - 28, 027 .47 28, 157 .93 .32 21, 668 .68 21, 655 .47 22, 921 22, 918 .07 ings (in clud ing d in st) Am orti sed 31 50. 31 50. 43 13. 43 13. 25 51. 51. 25 tere st acc rue co abl Am orti sed 67 2,2 76. 67 2,2 76. 86 1,8 22. 86 1,8 22. 09 2,2 47. 2,2 47. 09 st pay es co liab ilitie Am orti sed 50 1,0 06. 50 1,0 06. .01 714 .01 714 .42 662 662 .42 st se s co ina ncia l lia bilit ies (ex clud ing bor ings ) Am orti sed st .98 162 .98 162 14 87. 14 87. .42 469 469 .42 row co rd c ont ts p ble Fai lue 387 .89 Lev el 2 rac aya r va - - - - 3,4 96. 46 3,4 96. 46 44 2,6 37. 44 2,6 37. 07 3,8 18. 3,8 18. 07 val incl ude s in tere st a ued ue ccr fai re f f th e fo lue hie hy is b d o n in put s to luat ion tec hniq tha t ar sed to air val tha t ar ithe r ob vab le o obs abl nd sist llow ing thre e le vel r va rarc ase va ues e u me asu ue e e ser r un erv e a con s o s: el 1 Inp uts ote d p rice s (u nad jus ted ) in tive rke ts f or i den tica l as set r lia bilit ies are qu ac ma s o — le f (i.e ) or (i.e d fr ). el 2 Inp uts oth er t han ote d p rice s in clud ed with in L l 1 t hat ob vab or t he et o r lia bilit ithe r di tly pri ind irec tly . de rive pri are qu eve are ser ass y, e rec . as ces om ces — el 3 Inp uts not bas ed obs abl rke t dat (un obs abl inp uts ). Fai val det ine d in wh ole in t usin val uat ion del bas ed ptio tha t neit her ted by pric from obs abl are on erv e ma a erv e r ues are erm or par g a mo on ass um ns are sup por es erv e — t m ark et t tion s in the ins trum ent e th bas ed ilab le m ark et d ata ren ran sac sa me no r ar ey on ava (Th is s e is int ent ion ally lef t bl ank ) pac	pos sh de er A wa row de er f wa air
	Ass Inve Inve Inve Loa De Ca Tra Oth Unb For Bor Tra Lea Oth For * F The Lev Lev Lev

	c. Technology Companies and Emerging Verticals

					(In ₹ Million)
Particulars		BFSI	Healthcare & Life Sciences	Technology Companies and Emerging Verticals	Total

Revenue
	Quarter ended December 31, 2020	3,158.04	2,054.64	5,541.30	10,753.98
	Quarter ended December 31, 2019	2,812.66	1,741.05	4,673.58	9,227.29
	Nine months ende December 31, 2020	9.528.51	5,954.01	15,262.78	30,745.30
	Nine months ende December 31, 2019	7,618.43	4,942.37	13,833.63	26,394.43
	Year ended March 31, 2020	10,506.77	6,719.15	18,432.16	35,658.08
Identifiable expense
	Quarter ended December 31, 2020	1.797 50	945.97	4.057.21	6.800.69
	Quarter ended December 31, 2019	1,898.56	955.14	3,108.75	5,962.45
	Nine months ende December 31, 2020	5,961.79	3,018.50	10,435.94	19,416.23
	Nine months ende December 31, 2019	5,069.12	2,827.93	8,987.08	16,884.13
	Year ended March 31, 2020	6,908.62	3,818.97	12,013.97	22,741.56
Segmental result
	Quarter ended December 31, 2020	1.360.54	1.108.67	1.484.09	3.953.29
	December 31, 2019 Quarter ended	914.10	785.91	1,564.83	3,264.84
	Nine months ende December 31, 2020	3,566.72	2.935.51	4.826.84	11,329.07
	Nine months ende December 31, 2019	2,549.31	2,114.44	4,846.55	9,510.30
	Year ended March 31, 2020	3,598.15	2,900.18	6,418.19	12,916.52

Unallocable expenses	Quarter ended December 31, 2020				2,603.31
	Quarter ended December 31, 2019				2,472.84
	Nine months ende December 31, 2020				7,760.78
	Nine months ende December 31, 2019				7,147.88
	Year ended March 31, 2020				9,716.87

Operating income	Quarter ended December 31, 2020				1.349.98
	Quarter ended December 31, 2019				792.00
	Nine months ende December 31, 2020				3,568.29
	Nine months ende December 31, 2019				2,362.42
	March 31, 2020 Year ended				3.199.65

Other income (net of expenses)
	Quarter ended December 31, 2020				300.12
	Quarter ended December 31, 2019 Nine months ende December 31, 2020				347.75 677.36
	Nine months ende December 31, 2019				1,030.57
	Year ended March 31, 2020				1,323.77

Profit before taxes
	Quarter ended December 31, 2020				1,650.10
	Quarter ended December 31, 2019				1.139.75
	Nine months ende December 31, 2020 Nine months ende December 31, 2019				4,245.65 3,392.99
	Year ended March 31, 2020				4,523.42

Tax expense
	Quarter ended December 31, 2020				440.86
	Quarter ended December 31, 2019				260.49
	Nine months ende December 31, 2020 Nine months ende December 31, 2019				1,116.47 828.31
	March 31, 2020 Year ended				1,120.53

Profit after tax
	Quarter ended December 31, 2020				1.209.24
	Quarter ended December 31, 2019				879.26
	Nine months ende December 31, 2020				3,129.18
	Nine months ende December 31, 2019				2,564.68
	Year ended March 31, 2020				3.402.89

						(in ₹ Million)
Particulars			BFSI	Healthcare & Life Sciences	Technology Companies and Emerging Verticals	Total
Segmental trade receivables (net)
	As at	December 31, 2020	1.330.60	1,352.39	3,554.40	6,237.39
	As at	December 31, 2019	1.580.27	1.167.63	2.764.04	5.511.94
	As at	March 31, 2020	1,818.41	1,340.70	2.762.85	5.921.96
Seamental Unbilled revenue
	As at	December 31, 2020	316.63	120.71	1,801.64	2,238.98
	As at	December 31, 2019	313.22	208.01	1,754.59	2,275.82
	As at	March 31, 2020	409.33	273,90	1,385.31	2.068.54
Unallocated assets
	As at	December 31, 2020	۰	۰	٠	27,183.45
	As at	December 31, 2019	$\blacksquare$	۰	$\sim$	21,421.86
	As at	March 31, 2020		۰	$\overline{\phantom{a}}$	22,931.19
Unallocated liabilities
	As at	December 31, 2020	۰	٠	$\overline{\phantom{a}}$	35,659.82
	As at	December 31, 2019		۰	۰	29,209.62
	Ae of	March 31, 2020		. .		30.921.69

					- (in ₹ Million)
Particulars		India	North America	Rest of the World	Total
Revenue
	December 31, 2020 Quarter ended	928.58	8,632.58	1.192.82	10,753.98
	December 31, 2019 Quarter ended	678.06	7.322.14	1.227.09	9.227.29
	Nine months ende December 31, 2020	2.524.23	24.960.33	3.260.74	30.745.30
	Nine months ende December 31, 2019	.830.80	21.381.92	3.181.71	26.394.43
	14---- 24 2020 $N = - - - - - - - -$	0.05700	30.004.45	1.400001	25.050.00

Name of the related party and nature of relationship Sale of software services Entity over which a key management personnel has significant influence Deazzle Services Private Limited Total					(In ₹ Million)
		For the quarter ended	For the nine months ended		For the year ended
	December 31.	December 31.	December 31.	December 31.	March 31,
	2020	2019	2020	2019	2020


		1.07		5.97	7.47
		1.07		5.97	7.47

Legal and professional fees Entity over which a key management personnel has
significant influence
Azure Associates, LLC		1.83		12.38	10.63
Total		1.83		12.38	10.63
Donation given Entity over which a key management personnel has
significant influence
Persistent Foundation
	35.00	18.80	140.00	56.40	79 21

32A. (i) Significant related party transactions (excluding transactions with Key Management personnel and their relative

(ii) Significant outstanding balances @				$(n ∓$ Million)
	Name of the related party and nature of relationship		As at
		December 31.	December 31.	March 31,
		2020	2019	2020
Trade receivables	Entity over which a key management personnel has
	significant influence
	Deazzle Services Private Limited		0.51
	Total		0.51
Trade payables	Entity over which a key management personnel has
	significant influence
	Azure Associates, LLC
	Total
Advances given	Associate
	Klisma e-Services Private Limited @	0.81	0.81	0.81
	Total	0.81	0.81	0.81
Investments	Associate
	Klisma e-Services Private Limited @	0.05	0.05	0.05
	Total	0.05	0.05	0.05
Loans given	Associate
	Klisma e Services Private Limited @	2743	27.43	27.43
	Total	27 43	27 43	27.43

Notes forming part of Condensed Interim Consolidated Financial Statements

33. Contingent liabilities

Parent Company the Commissioner of Service Tax on December 19, 2016 for nonbasis, excluding interest and penalty if applicable. The issue relates to the professional and technical services rendered by overseas subsidiaries on behalf of the Parent Company to its overseas customers for the period 2011-12 to 2014-15.

Post representations made by the Parent Company, the Learned Principal Commissioner of Service Tax, Pune, adjudicated the aforesaid showthe period of limitation and as a result of that, the said demand now covers financial year 2014-15. The Parent Company has filed an appeal agains Excise and Service Tax Appellate Tribunal (CESTAT) on September 23, 2017.

The Group, based on independent legal opinion obtained in respect of issues related to this matter, believes that the liability is not likely to arise and therefore, no provision is considered necessary in the condensed interim consolidated financial statements. If the appeal filed as mentioned above results in a demand, there will be no impact on the profitability as the Group will be eligible to claim credit/refund for the amount paid.

The GST department filed an appeal on October 11, 2017 with appellate authorities against the Order passed by Learned Principal Commissioner of Service Tax, Pune. Though the GST department acknowledged the ground of revenue neutrality, the said appeal mainly questions non-application of extended period of limitation. The Parent Company filed reply to this appeal on December 18, 2017.

Considering the view of the Service Tax Authorities, based on legal advice and due prudence, the Company deposited, an 2017, under protest. This ba receivable. The disputed demand curren and forms part of the aforementioned GST receivable balance.

As on December 31 01.49 million and in respect of indirect taxes amount to 5.94 million (excluding the show cause notice received from Commissioner of Service Tax on advice obtained and judgments in favour of the Parent Company at the first appellate authority in the earlier years, management does not expect any outflow in respect of these litigations.

In respect of export incentives pertaining to previous periods protest with interest of Rs 41.03 million, the Parent Company filed an application before the relevant authorities. Further, the Parent Company has also submitted a follow up communication, in this regard, with DGFT. Also, the Parent Company had submitted representation with the industry association (NASSCOM) to ensure continued applicability of the said incentives to the eligible information technology companies. We understand from NASSCOM that they have also taken up the matter ds e the relevant authorities. The Parent Company is awaiting an opportunity of being heard on its application pending before DGFT and believes that the export incentives will be finally granted to the Parent Company. Accordingly, no provision has been considered in the financial statements in this regard.

In respect of the show cause notice dated 30th September 2020, received by the Parent Company on 9th October, 2020, on this matter from the Directorate of Revenue Intelligence (DRI), in which the authorities have raised certain additional matters with applicable penalties, the Parent Company, based on initial consultations with subject matter specialists/experts believes that its position will likely be upheld on ultimate resolution and hence, no provision has been considered in the financial statements in this regard.

Persistent Systems Limited has given a performance guarantee up to \$ 10 million to HSBC Bank USA in respect of payment obligations under the Receivables Purchase agreement entered into by Persistent Systems, Inc. with HSBC Bank, USA (Corresponding period / Previous year: \$10 million). Persistent Systems Limited has also given performance guarantee up to \$ 5 million to Citibank USA (Corresponding period / Previous year: \$ 5 million) in respect of working capital facilities for Persistent Systems, Inc. and \$ 0.17 million to Sun Life Assurance Company of Canada for timely payment of rent instalments and damages, in respect of office leased to Persistent Systems, Inc.

Persistent Systems, Inc. has given commercial guarantee of 30 million Euros (Corresponding period / Previous year: 30 Million euros) to Tech Data Europe GmbH on behalf of Persistent Systems France S.A.S. For the said guarantee, Persistent Systems, Inc. has charged guarantee fees of 0.25% of the guarantee amount.

Persistent Systems, Inc. has also given a performance guarantee of up to \$ 3 million (Corresponding period / Previous year: \$ 3 million) to United States Cellular Corporation (USCC) Services & its affiliates towards trade payable of Aepona Limited.

Notes forming part of Condensed Interim Consolidated Financial Statements

1. The Parent Company date. These were due for maturity from January 2019 to June 2019. In view of the uncertainty prevailing with respect to recovery of outstanding balances from IL&FS Group, Management of the Parent Company has fully provided for these deposits along with interest accrued thereon till the date the deposits had become doubtful of recovery. The Management is hopeful of recovery though with a time lag. The Parent Company continues to monitor developments in the matter and is committed to take steps including legal action that may be necessary to ensure full recovery of the said deposits.
1. Effective April 1, 2019, the Group has adopted Ind AS 116, Leases; and has recognized interest expense of 41.62 48.29 million / Previous year: .22 million).
1. The condensed interim consolidated financial statements share information or as otherwise stated.

37. Business combination

i) Acquired contractual r

On May 12, 2020, the Company has entered into an agreement with a customer wherein it has acquired a business division together with the skilled employees and has also entered into a service agreement with the same customer for a period of five years. The Company did not have/nor does it hold any equity interest in the aforementioned customer before or after Business Combinations.

A. Consideration for the transaction

The following table summarizes the acquisition date fair value of major components of the agreed consideration:

Particulars	Amount (in INR million)
Cash	136.10
Employee benefit liabilities assumed	42.66
Total Consideration	178.76

B. Identifiable assets acquired and liabilities assumed The acquisition of the said business is accounted for using the acquisition method of accounting. However, the Company did not perform a complete exercise of purchase price allocation pending fair valuation of assets and liabilities assumed as at the reporting date. As a result, the Company has exercised the option of using the exemption available under Ind AS 103, which provides the Company a period of twelve months from the acquisition date for completing the accounting of under Acquired contractual rights disclosed in Note 5.2 on provisional basis.

C. Developments based on subsequent events

In December 2020, the Customer has entered into a definitive contract to sell the aforesaid business, which resulted in reevaluation of business already acquired by the Company. The Company has entered into a revised agreement with the customer to restructure terms and conditions or the original acquisition agreement effective from January 1, 2021 or the notification by Actifio to Persistent of the closing of the acquisition of Actifio by a Third Party, whichever is later. The revised agreement will result in loss of control for the Company over the business acquired earlier. Such loss of control over the acquired business is effective January 01, 2021 or the notification by Actifio to Persistent of the closing of the acquisition of Actifio by a Third Party, whichever is later and as a result these financial statements do not include any adjustments arising from such revised agreement.

Particulars	CAPIOT Software Private Limited	CAPIOT Software Inc.	Total
Current Assets
Cash and & cash equivalents	20.00	10.90	30.90
Trade receivables	48.52	22.10	70.62
Other current assets	127.10	64 36	191.46
Non-current assets
Property, Plant and Equipment	6.26	0.74	7.00
Deferred tax asset	0.11		0.11
Contractual rights	193 11	14.76	207.87
Intellectual Property Rights	5 34		5.34
Tradename	5.27	1.19	6.46
Non-compete rights	29.81	2.30	32.11
Current liabilities
Trade and other payables	123.90	25 28	149.18
Borrowings	34.38	49.91	84 29
Net assets	277.24	41.16	318.40

Particulars	Amount in र million
Consideration paid/ payable in cash	448.47
Less: cash and cash equivalent balances acquired	(30.90
	417.57

Notes forming part of Condensed Interim Consolidated Financial Statements

1. The condensed interim financial statements for the quarter and nine months December 31, 2019, included in the interim consolidated financial statements as comparative financial information, were subjected to review by Statutory auditors. Partner Chairman and Executive Director and
1. Corresponding period / Previous year figures have been regrouped where necessary to conform with the current period

For Walker Chandiok & Co LLP For and on behalf of the Board of Directors of Chartered Accountants Persistent Systems Limited Firm Registration No.: 001076N/N500013

Membership No.: 106815 DIN: 00005721 DIN: 06475949

DIN: 00016814 DIN: 06475949

Bharat Shetty Dr. Anand Deshpande Sandeep Kalra Managing Director Chief Executive Officer

Place: Pune Place: New Jersey, USA Date: January 28, 2021 Date: January 28, 2021

Praveen Kadle Sunil Sapre Independent Director Executive Director and Chief Financial Officer

Place: Mumbai Place: Mumbai Date: January 28, 2021 Date: January 28, 2021

Amit Atre Company Secretary Membership No. A20507

Place: Mumbai Place: Pune Date: January 28, 2021 Date: January 28, 2021

Walker Chandiok & Co LLP 11th floor, Tower II, One International Center, SB Marg, Prabhadevi (W) Mumbai 400 013 India T +91 22 6626 2699 F +91 22 6626 2601

To the Members of Persistent Systems Limited

Report on the Audit of the Condensed Interim Standalone Financial Statements

Opinion

1. We have audited the accompanying condensed interim standalone financial statements of Persistent Systems Limited Condensed Interim Balance Sheet as at 31 December 2020, the Condensed Interim Statement of Profit and Loss (including Other Comprehensive Income) for the quarter and nine months ended 31 December 2020, the Condensed Interim Cash Flow Statement and the Condensed Interim Statement of Changes in Equity for the and nine months ended 31 December 2020, and a summary of the significant accounting policies and other explanatory information.
1. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid condensed interim standalone financial statements give the information required by the Companies Act, 2013 generally accepted in India including in accordance with Indian Accounting Standard 34, Interim Financial specified under section 133 of the Act, of the state of affairs (financial position) of the Company as at 31 December 2020, and its profit (financial performance including other comprehensive income) for the quarter and nine months ended 31 December 2020, its cash flows and the changes in equity for the nine months ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing specified under section 143(10) of the Act. Our responsibilities under those standards are further described in the Audit of the condensed interim standalone financial statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India r audit of the condensed interim standalone financial statements under the provisions of the Act and the rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Page 1 of 3

Walker Chandiok & Co LLP is registered with limited liability with identification number AAC-2085 and its registered office at L-41 Connaught Circus, New Delhi, 110001, India

Chartered Accountants

on the Audit of the Condensed Interim Standalone Financial Statements

Responsibilities of Management and Those Charged with Governance for the condensed interim Standalone Financial Statements

1. The Board of Directors. The Section 134(5) of the Act with respect to the preparation of these condensed interim standalone financial statements that give a true and fair view of the state of affairs (financial position), profit (financial performance including other comprehensive income), changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India including in accordance with Ind AS 34 specified under section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the condensed interim standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
1. In preparing the condensed interim standalone financial statements, management is responsible for assessing concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
6.

condensed interim standalone financial statements

1. Our objectives are to obtain reasonable assurance about whether the condensed interim standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an sonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these condensed interim standalone financial statements.
1. As part of an audit in accordance with Standards on Auditing, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the condensed interim standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

on the Audit of the Condensed Interim Standalone Financial Statements

based on the audit evidence obtained, whether a material uncertainty exists related to events or conclude that a material uncertainty exists, we are required t related disclosures in the condensed interim standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the continue as a going concern.
Evaluate the overall presentation, structure and content of the condensed interim standalone financial statements, including the disclosures, and whether the condensed interim standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
1. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. Other Matter

The condensed interim standalone financial statements for the corresponding quarter and nine months ended 31 December 2019, included in the accompanying condensed interim standalone financial statements as comparative financial information, was subject to review by us vide our review report dated 30 January 2020. Our opinion is not modified in respect of this matter.

For Walker Chandiok & Co LLP

Chartered Accountants Firm Registration No:001076N/N500013

Bharat Shetty Partner Membership No:106815

UDIN:21106815AAAAAK9273

Place: Mumbai Date: 28 January 2021

- Investments - Loans - Other non current financial assets	Notes 5.1 5.2 5.3	As at December 31, 2020 (Audited)	As at December 31, 2019
Persistent Systems Limited CONDENSED INTERIM BALANCE SHEET AS AT DECEMBER 31, 2020 ASSETS Non-current assets Property, Plant and Equipment Capital work-in-progress Right of Use assets Other Intangible assets Intangible assets under development Financial assets Deferred tax assets (net) Other non-current assets

				As at
			(Unaudited)	March 31, 2020 (Audited)

		2,115.34 18.24 320.86	2,098.41 4.49 263.92	2,048.77 48.27 269.40
		162.72 2.73 2,619.89	50.78 107.08 2,524.68	46.97 137.20 2,550.61
	6 7	7,976.29 143.79	7,553.85 123.57	8,379.86 123.57
	8 9 10	44.79 259.82 324.33	500.18 250.29 334.04	358.93 317.35 329.39
Current assets		11,368.91	11,286.61	12,059.71
Financial assets - Investments - Trade receivables (net)	11 12	5,629.40 2,844.01	2,309.43 2,973.90	5,164.77 2,883.09
- Cash and cash equivalents - Other bank balances - Loans	13 14 15	573.91 7,327.31 0.10	437.67 5,588.51 0.10	532.63 2,405.32 4.76
- Other current financial assets Other current assets	16 17	2,070.84 1,377.94 19,823.51	2,136.77 1,263.19 14,709.57	2,080.07 1,485.37 14,556.01
TOTAL		31,192.42	25,996.18	26,615.72
EQUITY AND LIABILITIES EQUITY
Equity share capital Other equity	4	764.25 26,446.35	764.25 22,142.71	764.25 22,221.13
LIABILITIES		27,210.60	22,906.96	22,985.38
Financial liabilities
- Lease liabilities - Borrowings Provisions	20 18 19	305.89 5.54 240.67	212.07 8.49 189.65	191.26 7.08 182.79
		552.10	410.21	381.13
Financial liabilities - Lease liabilities	20	82.04	182.69	165.38
- Trade payables for goods and services million)]	21	836.66	854.36	972.49
- Other financial liabilities Other current liabilities	22 23	134.57 1,126.99	101.31 1,004.16	549.73 851.02
Provisions Current tax liabilities (net)	24	1,077.67 171.79 3,429.72	509.44 27.05 2,679.01	590.38 120.21 3,249.21
TOTAL		31,192.42	25,996.18	26,615.72
Summary of significant accounting policies The accompanying notes are an integral part of the condensed interim financial statements.	3
As per our report of even date
Chartered Accountants Firm Registration No.: 001076N/N500013		Persistent Systems Limited


Bharat Shetty Partner		Dr. Anand Deshpande Chairman and Managing Director	Executive Director and Chief Executive Officer	Independent Director
Membership No.: 106815		DIN: 00005721	DIN: 06475949	DIN: 00016814
		Place: Pune Date : January 28, 2021	Place: New Jersey, USA Date : January 28, 2021	Place: Mumbai Date : January 28, 2021

		Amit Atre Company Secretary	Executive Director and Chief
		Membership No. A20507	Financial Officer DIN: 06475949
Place: Mumbai Date : January 28, 2021		Place: Pune Date : January 28, 2021	Place: Mumbai Date : January 28, 2021

Persistent Systems Limited

CONDENSED INTERIM STATEMENT OF PROFIT AND LOSS FOR THE QUARTER AND NINE MONTHS ENDED DECEMBER 31, 2020	Notes	For the quarter ended		For the nine months ended		For the year ended
		December 31, 2020 In Million	December 31, 2019 In Million	December 31, 2020 In Million	December 31, 2019 In Million	March 31, 2020 In Million
Income Revenue from operations (net)	25	(Audited) 6,426.34	(Unaudited) 5,448.79	(Audited) 17,949.50	(Unaudited) 15,419.83	(Audited) 21,081.22
Other income Total income (A)	26	325.43 6,751.77	409.73 5,858.52	826.41 18,775.91	1,275.72 16,695.55	1,599.04 22,680.26
Expenses Employee benefits expense	27.1	3,699.64	2,905.94	10,021.99	8,084.80	11,029.06
Cost of professionals Finance costs (refer note 34)	27.2	448.82 8.41	462.30 10.69	1,310.28 27.00	1,430.74 34.80	1,825.37 44.51
Depreciation and amortization expense Other expenses Total expenses (B)	5.4 28	140.40 845.03 5,142.30	139.95 1,132.88 4,651.76	411.27 2,226.13 13,996.67	418.66 3,061.70 13,030.70	555.12 3,897.14 17,351.20
Profit before tax (A - B)		1,609.47	1,206.76	4,779.24	3,664.85	5,329.06
Tax expense Current tax		375.82	324.83	1,215.82	925.60	1,297.91
Tax charge / (credit) in respect of earlier periods / years Deferred tax credit Total tax expense		- (25.38) 350.44	(1.60) (16.03) 307.20	2.74 (89.46) 1,129.10	(1.60) (61.56) 862.44	(1.60) (44.48) 1,251.83
Net profit for the period / year (C)		1,259.03	899.56	3,650.14	2,802.41	4,077.23
Other comprehensive income
Items that will not be reclassified to profit and loss (D)
- Remeasurements of the defined benefit asset / (liabilities) (net of tax)		(32.89)	0.25	(8.63)	(33.55)	(30.46)
Items that may be reclassified to profit and loss (E) - Effective portion of cash flow hedge (net of tax)		(32.89) 96.00	0.25 (31.11)	(8.63) 436.99	(33.55) (179.01)	(30.46) (429.15)
		96.00	(31.11)	436.99	(179.01)	(429.15)
Total other comprehensive income for the period / year (D) + (E)		63.11	(30.86)	428.36	(212.56)	(459.61)
Total comprehensive income for the period / year (C) + (D) + (E)		1,322.14	868.70	4,078.50	2,589.85	3,617.62
Earnings per equity share [Nominal value of share 10 (Corresponding period/	29
previous year: 10)] Basic (In )		16.47	11.77	47.76	36.50	53.17
Diluted (In )		16.47	11.77	47.76	36.50	53.17
Summary of significant accounting policies The accompanying notes are an integral part of the condensed interim financial statements.	3
As per our report of even date
For Walker Chandiok & Co LLP Chartered Accountants		For and on behalf of the Board of Directors of Persistent Systems Limited
Firm Registration No.: 001076N/N500013

Bharat Shetty		Dr. Anand Deshpande		Sandeep Kalra		Praveen Kadle
Partner		Chairman and Managing Director		Executive Director and Chief Executive Officer		Independent Director
Membership No.: 106815		DIN: 00005721 Place: Pune		DIN: 06475949 Place: New Jersey, USA		DIN: 00016814 Place: Mumbai
		Date : January 28, 2021		Date : January 28, 2021		Date : January 28, 2021
		Amit Atre		Sunil Sapre
		Company Secretary Membership No. A20507		Executive Director and Chief Financial Officer
				DIN: 06475949

Independent Director

Persistent Systems Limited CONDENSED INTERIM CASH FLOW STATEMENT FOR THE NINE MONTHS ENDED DECEMBER 31, 2020






	For the nine months ended December 31, 2020	December 31, 2019	For the year ended March 31, 2020
	In Million (Audited)	In Million (Unaudited)	In Million (Audited)
Cash flows from operating activities
Profit before tax Adjustments for:	4,779.24	3,664.85	5,329.06
Interest income	(396.30)	(408.28)	(525.76)
Finance cost Dividend income	27.00 (131.45)	34.80 (272.26)	44.51 (410.72)
Depreciation and amortization expense	411.27	418.66	555.12
Unrealised exchange loss / (gain) (net) Exchange (gain) / loss on derivative contracts	137.03 (93.97)	(16.83) (84.21)	(128.86) 58.51
Exchange loss / (gain) on translation of foreign currency cash and cash equivalents	18.98	(11.86)	(46.82)
Bad debts	43.37	-	-
Provision for doubtful debts (net)	(4.67)	27.88	47.31
Provision for doubtful deposits Employee stock compensation expenses	- 156.98	200.00 39.30	248.48 60.01
Remeasurements of the defined benefit liabilities / asset (before tax effects) Loss / (gain) on fair valuation of mutual funds	(8.63) 127.23	(46.85) (37.25)	(41.80) (119.02)
Profit on sale of investments (net)	(413.37)	(152.95)	(164.81)
Profit on sale of Property, Plant and Equipment (net) Operating profit before working capital changes	(6.63) 4,646.08	(0.94) 3,354.06	- 4,905.21
Movements in working capital :
Decrease / (Increase) in non-current and current loans Increase in other non current assets	19.97 (11.46)	(0.63) (267.75)	(5.29) (261.04)
Decrease / (Increase) in other current financial assets	384.48	(311.38)	(246.75)
Decrease / (Increase) in other current assets Increase in trade receivables	107.43 (122.77)	(19.75) (806.44)	(241.93) (373.81)
Increase in trade payables, current liabilities and non current liabilities	174.93	532.36	209.81
Increase / (Decrease) in provisions Operating profit after working capital changes	545.17 5,743.83	(123.48) 2,356.99	(49.40) 3,936.80
Direct taxes paid (net of refunds)	(1,166.98)	(936.58)	(1,217.69)
Net cash generated from operating activities (A)	4,576.85	1,420.41	2,719.11
Cash flows from investing activities
Payment towards capital expenditure (including intangible assets) Proceeds from sale of Property, Plant and Equipment	(512.56) 38.89	(333.80) 1.07	(483.57) 4.08
Investment in wholly owned subsidiaries Purchase of bonds	(376.61) (583.88)	(474.00) (285.54)	(474.00) (901.61)
Proceeds from sale of bonds	172.84	382.70	819.87
Investments in mutual funds Proceeds from sale / maturity of mutual funds	(17,967.72) 18,999.10	(11,624.39) 13,253.13	(19,456.95) 17,670.49
(Investments)/ maturity in bank deposits Maturity of deposit with financial institutions	(4,463.44) -	(1,074.97) 250.00	2,044.25 250.00
Inter corporate deposits (made) / refunded	(35.38)	-	-
Interest received Dividend received	232.04 131.45	202.48 272.26	484.68 410.72
Net cash (used in) / generated from investing activities (B)	(4,365.27)	568.94	367.96
Cash flows from financing activities
Repayment of long term borrowings	(3.18)	(3.21)	(4.62)
Payment of lease liabilities Shares bought back	(128.81) -	(139.29) (1,677.01)	(188.37) (1,677.01)
Specific project related grant received Dividend paid	9.00 (1.21)	3.00 (229.28)	3.00 (1,144.60)
Tax on dividend paid	-	(47.99)	(154.14)
Interest paid Net cash used in financing activities (C )	(27.12) (151.32)	(34.88) (2,128.66)	(0.64) (3,166.38)

CONDENSED INTERIM CASH FLOW STATEMENT FOR THE NINE MONTHS ENDED DECEMBER 31, 2020

Persistent Systems Limited
CONDENSED INTERIM CASH FLOW STATEMENT FOR THE NINE MONTHS ENDED DECEMBER 31, 2020
		December 31, 2020	For the nine months ended December 31, 2019	For the year ended March 31, 2020
		(Audited)	(Unaudited)	(Audited)
		532.63	60.26 (139.31) 565.12	(79.31) 565.12
Effect of exchange differences on translation of foreign currency cash and cash equivalents		(18.98)	11.86	46.82
		573.91	437.67	532.63
Cash on hand (refer note 13)		0.05	0.12	0.15
Balances with banks On current accounts # (refer note 13)		188.17	157.26	198.79
On saving accounts (refer note 13) On Exchange Earner's Foreign Currency accounts (refer note 13)		10.27 277.92	7.26 273.03	0.36 261.86
On deposit account with maturity of less than three months (refer note 13)		97.50 573.91	- 437.67	71.47 532.63

6.62 Million) only towards research and development activities specified in the agreement.

Summary of significant accounting policies - Refer note 3
The accompanying notes are an integral part of the condensed interim financial statements.
As per our report of even date

Chartered Accountants Firm Registration No.: 001076N/N500013	Persistent Systems Limited



Bharat Shetty	Dr. Anand Deshpande
Partner		Chairman and Managing Director	Executive Director and Chief Executive Officer	Independent Director
Membership No.: 106815	DIN: 00005721		DIN: 06475949	DIN: 00016814
	Place: Pune Date : January 28, 2021		Place: New Jersey, USA Date : January 28, 2021	Place: Mumbai Date : January 28, 2021

	Amit Atre
	Company Secretary		Executive Director and Chief Financial Officer
	Membership No. A20507		DIN: 06475949
Place: Mumbai	Place: Pune Date : January 28, 2021		Place: Mumbai

Summary of significant accounting policies - Refer note 3

CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY FOR THE NINE MONTHS ENDED DECEMBER 31, 2020

(Refer note 4)

	the period

764.25	-	764.25

791.19	(26.94)	764.25

791.19	(26.94)	764.25

							comprehensive income
	Securities premium reserve		Share options outstanding reserve	redemption reserve	Zone re-investment reserve	Retained earnings	hedges
	-	12,227.23	290.51	35.75	49.95	9,861.78	(244.09)	22,221.13
Net profit for the period	-	-	-	-	-	3,650.14	-	3,650.14
Other comprehensive income for the period	-	-	-	-	-	(8.63)	436.99	428.36
Employee stock compensation expenses	-	-	156.98	-	-	-	-	156.98
Employee stock compensation expenses of subsidiaries	-	-	85.20	-	-	-	-	85.20
Adjustments towards employees stock options	-	-	(95.46)	-	-	-	-	(95.46)

Persistent Systems Limited CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY FOR THE NINE MONTHS ENDED DECEMBER 31, 2020









B. Other equity

							comprehensive
							income

	Securities premium		Share options outstanding	redemption reserve	Zone re-investment reserve	Retained earnings
	reserve		reserve				hedges
	-	12,227.23	290.51	35.75	49.95	9,861.78	(244.09)	22,221.13
Net profit for the period	-	-	-	-	-	3,650.14	-	3,650.14
Other comprehensive income for the period	-	-	-	-	-	(8.63)	436.99	428.36
Employee stock compensation expenses	-	-	156.98	-	-	-	-	156.98
Employee stock compensation expenses of subsidiaries	-	-	85.20	-	-	-	-	85.20
Adjustments towards employees stock options	-	-	(95.46)	-	-	-	-	(95.46)
	-	12,227.23	437.23	35.75	49.95	13,503.29	192.90	26,446.35


							comprehensive
							income
	Securities premium		Share options outstanding
	reserve		reserve	redemption reserve	Zone re-investment reserve	Retained earnings	hedges
	774.10	10,570.73	76.29	8.81	70.00	9,735.72	185.06	21,420.71
Net profit for the period	-	-	-	-	-	2,802.41	-	2,802.41
Other comprehensive income for the period	-	-	-	-	-	(33.55)	(179.01)	(212.56)
Dividend	-	-	-	-	-	(229.28)	-	(229.28)
Tax on dividend	-	-	-	-	-	(47.99)	-	(47.99)
Transfer to capital redemption reserve	-	-	-	26.94	-	(26.94)	-	-
Transitional impact on adoption of Ind AS 116	-	-	-	-	-	(106.44)	-	(106.44)
Employee stock compensation expenses	-	-	39.30	-	-	-	-	39.30
Employee stock compensation expenses of subsidiaries	-	-	126.63	-	-	-	-	126.63
Adjustments towards employees stock options	-	25.61	(25.61)	-	-	-	-	-
Utilised towards buy back of shares (refer note 4d)	(774.10)	-	-	-	-	(875.97)	-	(1,650.07)
	-	10,596.34	216.61	35.75	70.00	11,217.96	6.05	22,142.71



							comprehensive
							income

	Securities premium reserve		Share options outstanding reserve	redemption reserve	Zone re-investment reserve	Retained earnings	hedges

	-	10,596.34	216.61	35.75	70.00	11,217.96	6.05	22,142.71


							comprehensive
							income
	Securities premium		Share options outstanding
				redemption reserve	Zone re-investment reserve	Retained earnings
	reserve		reserve				hedges
	774.10	10,570.73	76.29	8.81	70.00	9,735.72	185.06	21,420.71
Net profit for the year	-	-	-	-	-	4,077.23	-	4,077.23
Other comprehensive income for the year Dividend	-	-	-	-	-	(30.46)	(429.15)	(459.61)
Tax on dividend	- -	- -	- -	- -	- -	(1,146.38) (154.14)	- -	(1,146.38) (154.14)
Transfer to capital redemption reserve	-	-	-	26.94	-	(26.94)	-	-
Transitional impact on adoption of Ind AS 116	-	-	-	-	-	(106.44)	-	(106.44)
Transfer to Special Economic Zone re-investment reserve	-	-	-	-	(20.05)	20.05	-	-
Transfer to general reserve	-	1,630.89	-	-	-	(1,630.89)	-	-
Employee stock compensation expenses	-	-	60.01	-	-	-	-	60.01
Employee stock compensation expenses of subsidiaries	-	-	179.82	-	-	-	-	179.82
Adjustments towards employees stock options	-	25.61	(25.61)	-	-	-	-	-
Utilised towards buy back of shares (refer note 4d)	(774.10)	-	-	-	-	(875.97)	-	(1,650.07)
	-	12,227.23	290.51	35.75	49.95	9,861.78	(244.09)	22,221.13

Summary of significant accounting policies - Refer note 3
The accompanying notes are an integral part of the condensed interim financial statements.

As per our report of even date

Chartered Accountants			Persistent Systems Limited

Firm Registration No.: 001076N/N500013 Bharat Shetty Dr. Anand Deshpande Partner Chairman and Managing Director Independent Director Membership No.: 106815 DIN: 00005721 DIN: 00016814 Place: Pune Place: New Jersey, USA Place: Mumbai Date : January 28, 2021 Date : January 28, 2021 Date : January 28, 2021 Amit Atre Company Secretary Executive Director Membership No. A20507 and Chief Financial Officer DIN: 06475949 Place: Pune Place: Pune Place: Mumbai Date : January 28, 2021 Date : January 28, 2021 Date : January 28, 2021 Executive Director and Chief Executive Officer DIN: 06475949

CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY FOR THE NINE MONTHS ENDED DECEMBER 31, 2020

a) Securities premium

the provisions of Section 52 of the Companies Act, 2013.

Securities premium is used to record the premium on issue of shares. The reserve is utilised in accordance with General reserve represents amounts transferred from profit for the period year and from Share options outstanding reserve on exercise expiry of employee share options. It is a free reserve in terms of section 2 (43) of the Companies Act, 2013.

c) Share options outstanding reserve

in accordance with Section 69 of the Companies Act, 2013.

The Special Economic Zone re-investment reserve has been created out of the profit in terms of the provisions of Section 10AA(1)(ii) of the Income tax Act, 1961. The reserve should be utilised by the Company for acquiring new plant and machinery for the purpose of its business in accordance with Section 10AA(2) of the Income tax Act, 1961. The cash flow hedge reserve represents the cumulative effective portion of gains or losses arising on changes in fair value of hedging instruments entered into towards highly probable transactions. Such gains or losses are subsequently recognised in the statement of profit and loss in the period in which the said transaction occurs

hedging instruments are cancelled.

Notes forming part of Condensed Interim Financial Statements

1. Nature of operations

of the Companies Act, 1956. The shares of the Company are listed on Bombay Stock Exchange and National Stock Exchange. The Company is a global company specializing in software products, services and technology innovation. The Company offers complete product life cycle services.

2. Basis of preparation

The condensed interim financial statements of the Company have been prepared on an accrual basis and under the historical cost convention except for certain financial instruments and equity settled employee stock options which have been measured at fair value. Historical cost is generally based on the fair value of consideration given in exchange of goods and services. The accounting policies are consistently applied by the Company during the period and are consistent with those used in corresponding period / previous year except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

Statement of compliance

These condensed interim financial statements have been prepared in accordance with Ind AS 34, Interim Financial Reporting, as notified under the Companies (Indian Accounting Standards) Rules, 2015 read with Section 133 of the

3. Summary of significant accounting policies

(a) Use of estimates

The preparation of the condensed interim financial statements in conformity with Ind AS requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenue, expenses, assets and liabilities and knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

Estimation of uncertainties relating to the global health pandemic, COVID-19:

the date of the approval of these financials, has used various available sources of information to analyse the carrying statements may differ from the estimate as on the date of the approval of the condensed interim financial statements.

Expected credit loss:

The Company has considered the current and anticipated future economic conditions relating to industries the Company deals with and the countries where it operates. In calculating expected credit loss, the Company has also considered related credit information for its customers to estimate the probability of default in future and has taken into account estimates of possible effect from the pandemic, COVID -19 using the forward looking approach prescribed by Ind AS 109.

Impact on hedged and unhedged foreign currency exposure:

Based on its assessment, the Company believes that the probability of occurrence of its forecasted transactions are not effectiveness of its cash flow hedges due to this global pandemic.

Carrying value of financial instruments:

permanent decline in their carrying value are expected.

Impact on revenue:

The Company continues to re-evaluate the probable revenues from customers in various verticals to assess any possible opinion of the Company that the customers could re-prioritise their discretionary spend in the immediate future to conserve resources.

duration. The Company has considered the same to the extent known currently and has taken steps to measure the cost budgets required to complete its performance obligations in respect of fixed price contracts and incorporated the impact of likely delays and costs in meeting its obligations.

Notes forming part of Condensed Interim Financial Statements

Critical accounting estimates

i. Revenue recognition

The Company uses the percentage-of-completion method in accounting for its fixed-price contracts. Use of the percentageof-completion method requires the Company to estimate the efforts or costs expended to date as a proportion of the total efforts or costs to be expended. Efforts or costs expended have been used to measure progress towards completion. Provisions for estimated losses, if any, on uncompleted contracts are recorded in the period in which such losses become probable based on the expected contract estimates at the reporting date.

Further, the Company uses significant judgement while determining the transaction price allocated to performance obligations using the expected cost plus margin approach.

In respect of the contracts where the transaction price is payable as revenue share at pre-defined percentage of customer revenue and bearing in mind, the time gap between the close of the accounting period and availability of the revenue report from the customer, the Company is required to use its judgement to ascertain the income from revenue share on the basis of historical trends of customer revenue.

ii. Income taxes

The Company's major tax jurisdiction is India, though the Company also files tax returns in other overseas jurisdictions. Significant judgements are involved in determining the provision for income taxes.

iii. Property, Plant and Equipment

Property, Plant and Equipment represent a significant proportion of the asset base of the Company. The charge in respect the end of its life. The useful lives and residual values of Company's assets are determined by management at the time the asset is acquired and reviewed periodically. The lives are based on historical experience with similar assets as well as anticipation of future events, which may impact their life, such as changes in technology.

iv. Provisions

v. Leases

Ind AS 116 requires lessees to determine the lease term as the non-cancellable period of a lease adjusted with any option to extend or terminate the lease, if the use of such option is reasonably certain. The Company makes an assessment on the expected lease term on a lease-by-lease basis and thereby assesses whether it is reasonably certain that any options to extend or terminate the contract will be exercised. In evaluating the lease term, the Company considers factors such as any significant leasehold improvements undertaken over the lease term, costs relating to the termination of the lease and the the availability of suitable alternatives. The lease term in future periods is reassessed to ensure that the lease term reflects the current economic circumstances. After considering current and future economic conditions, the Company has concluded that no changes are required to lease periods relating to the existing lease contracts.

(b) Property, Plant and Equipment

Subsequent expenditure related to an item of Property, Plant and Equipment is added to its original cost only if it is probable that future economic benefits associated with the item will flow to the Company. All other expenses on existing Property, Plant and Equipment, including day-to-day repair and maintenance expenditure and cost of replacing parts, are charged to the statement of profit and loss for the period during which such expenses are incurred.

Notes forming part of Condensed Interim Financial Statements

(c) Intangible assets

Research and development cost

Research costs are expensed as incurred. Development expenditure incurred on an individual project is recognized as an intangible asset when the Company can demonstrate:

technical feasibility of completing the intangible asset so that it will be available for use or sale;
its intention to complete the asset;
its ability to use or sell the asset;
how the asset will generate probable future economic benefits;
the availability of adequate resources to complete the development and to use or sell the asset; and
the ability to measure reliably the expenditure attributable to the intangible asset during development.

Such development expenditure, until capitalization, is reflected as intangible assets under development.

(d) Depreciation and amortization

the assets estimated by the management.

The management estimates the useful lives for the Property, Plant and Equipment as follows:

Assets	Useful lives
Buildings*	25 years
Computers	3 years
Computers - Servers and networks*	3 years
Office equipments	5 years
Plant and equipment*	5 years
Plant and equipment (Windmill)*	20 years
Plant and equipment (Solar Energy System)*	10 years
Furniture and fixtures*	5 years
Vehicles*	5 years

*For these classes of assets, based on internal assessment and independent technical evaluation carried out by external valuers, the management believes that the useful lives as given above best represent the period over which the management expects to use these assets. Hence the useful lives of these assets are different from the useful lives as prescribed under Part C of Schedule II of the Companies Act 2013.

Individual assets whose cost does not exceed 5,000 are fully depreciated in the period / year of acquisition.

Leasehold improvements are amortized over the period of lease or useful life, whichever is lower.

Intangible assets are amortized on a straight-line basis over their estimated useful lives ranging from 3 to 6 years from the day the asset is made available for use.

(e) Financial instruments

i) Financial assets

Initial recognition and measurement

Notes forming part of Condensed Interim Financial Statements

Subsequent measurement

For the purpose of subsequent measurement, financial assets are classified as: - Financial assets at amortized cost

Financial assets that are held within a business model whose objective is achieved both by collecting contractual cash interest on the principal amount outstanding are subsequently measured at fair value. Fair value movements are recognized in other comprehensive income. - Financial assets at fair value through profit or loss (FVTPL)

Any financial asset which does not meet the criteria for categorization as financial asset at amortized cost or as FVTOCI, is classified as financial asset at FVTPL. Financial assets except derivative contracts included within the FVTPL category are subsequently measured at fair value with all changes recognized in the statement of profit and loss. - Derivatives and hedging contracts not intended for trading or speculation purposes, classified as derivative

financial instruments

derivative financial instruments which qualify for cash flow hedge accounting are fair valued at balance sheet date and the effective portion of the resultant loss / (gain) is debited / (credited) to the hedge reserve under other comprehensive income and the ineffective portion is recognized to the statement of profit and loss. Derivative financial instruments are carried as forward contract receivable when the fair value is positive and as forward contract payable when the fair value is negative.

Changes in the fair value of derivative instruments that do not qualify for hedge accounting are recognized in the statement of profit and loss as they arise.

Hedge accounting is discontinued when the hedging instrument expires or is sold, or terminated, or exercised, or no longer qualifies for hedge accounting. Any cumulative gain or loss on the hedging instrument recognized under other comprehensive income under other comprehensive income is transferred to the statement of profit and loss when the forecasted transaction occurs or affects the statement of profit and loss or when a hedged transaction is no longer expected to occur.

Derecognition

The Company derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party.

the consideration received and receivable and the cumulative gain or loss that had been recognised in other comprehensive income and accumulated in equity, if any, is recognised in the statement of profit and loss.

ii) Financial liabilities

Initial recognition and measurement

Financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to issue of financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are deducted from the fair value of the financial liabilities on initial recognition. Transaction costs directly attributable to the issue of financial liabilities at fair value through profit or loss are recognised immediately in the statement of profit and loss.

Subsequent measurement

For the purpose of subsequent measurement, financial liabilities are classified as:

Notes forming part of Condensed Interim Financial Statements

- Financial liabilities at amortized cost

Financial liabilities include financial liabilities held for trading and financial liabilities designated upon initial recognition at fair value through profit or loss if the recognition crit Gains or losses on liabilities held for trading are recognized in statement of profit and loss. Fair value gains or losses on liabilities designated as FVTPL attributable to changes in own credit risk are recognized in other comprehensive income. All other changes in fair value of liabilities designated as FVTPL are recognized in the statement of profit and loss. The Company has not designated any financial liability at FVTPL.

Derecognition

expired. The difference between the carrying amount of the financial liability derecognised and the consideration paid and payable is recognised in the statement of profit and loss.

iii) Impairment

i) Financial assets

The Company applies Expected Credit Loss (ECL) model for measurement and recognition of impairment loss on financial assets measured at amortized cost and financial assets that are debts instruments and are measured at fair value through other comprehensive income (FVTOCI). ECL is the difference between contractual cash flows that are due and the cash flows that the Company expects to receive, discounted at the original effective interest rate.

For trade receivables, the Company recognizes impairment loss allowance based on lifetime ECL at each reporting date, right from its initial recognition. For other financial assets, the Company determines whether there has been a significant increase in the credit risk since initial recognition. If credit risk has not increased significantly, 12 month ECL is used to provide for impairment loss. However, if credit risk has increased significantly, lifetime ECL is used.

ii) Non-financial assets

The carrying amounts of Property, Plant and Equipment are reviewed at each balance sheet date or whenever there is any recoverable amount unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the Cash Generating Unit (CGU) to which the asset belongs. If the recoverable amount of an asset (or CGU) is estimated to be less than its carrying amount, the carrying amount of the asset (or CGU) is reduced to its recoverable amount. The recoverable amount is the greater of the asset's fair value and its value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and risks specific to the asset. An impairment loss is recognised in the statement of profit and loss.

Recoverable amount of intangible assets under development that is not yet available for use is estimated at least at each financial period end even if there is no indication that the asset is impaired.

(f) Borrowing costs

Borrowing cost includes interest and amortization of ancillary costs incurred in connection with the arrangement of borrowings.

(g) Leases

a contract contains a lease, at inception of a contract. 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.

To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether:

(i) the contract involves the use of an identified asset

(ii) the Company has substantially all of the economic benefits from use of the asset through the period of the lease and (iii) the Company has the right to direct the use of the asset

Notes forming part of Condensed Interim Financial Statements

Where the Company is a lessee

The Company accounts for each lease component within the contract as a lease separately from non-lease components of the contract and allocates the consideration in the contract to each lease component on the basis of the relative stand-alone price of the lease component and the aggregate stand-alone price of the non-lease components.

The Company recognises right-of-use asset representing its right to use the underlying asset for the lease term at the lease commencement date. The cost of the right-of-use asset measured at inception shall comprise of the amount of the initial measurement of the lease liability adjusted for any lease payments made at or before the commencement date less any lease incentives received, plus any initial direct costs incurred and an estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset or restoring the underlying asset or site on which it is located.

The Company measures the lease liability at the present value of the lease payments that are not paid at the commencement date of the lease. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined. If that rate cannot be readily determined, the Company uses incremental borrowing rate.

The lease payments shall include fixed payments, variable lease payments based on an index or rate, residual value guarantees, exercise price of a purchase option where the Company is reasonably certain to exercise that option and payments of penalties for terminating the lease, if the lease term reflects the lessee exercising an option to terminate the lease.

When the lease liability is remeasured, the corresponding adjustment is reflected in the right-of-use asset, or statement of profit and loss if the right-of-use asset is already reduced to zero.

The Company has elected not to apply the requirements of Ind AS 116 to short-term leases of all assets that have a lease term of 12 months or less and leases for which the underlying asset is of low value. The lease expenses associated with these leases are recognized in the statement of profit and loss on a straight line basis.

Company as a lessor

At the inception of the lease, the Company classifies each of its leases as either an operating lease or a finance lease. The Company recognises lease payments received under operating leases as income over the lease term on a straight line basis.

(h) Revenue recognition

Revenue is measured at the fair value of the consideration received or receivable taking into account the amount of any trade discounts and volume rebates allowed by the Company. Revenue is recognized to the extent it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognized:

(i) Income from sale of software services and products

The company derives revenues primarily from IT services comprising of software development and related services and from the licensing of software products.

Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration expected to receive in exchange for those products or services. Arrangements with customers for software related services are either on a time-and-material or a fixed-price basis.

Revenue on time-and-material contracts are recognized as and when the related services are performed. Revenue from fixed-price contracts, where the performance obligations are satisfied over time and where there is no uncertainty as to measurement or collectability of consideration, is recognized as per the percentage-of-completion method. When there is uncertainty as to measurement or ultimate collectability, revenue recognition is postponed until such uncertainty is resolved.

Notes forming part of Condensed Interim Financial Statements

the access period.

When support services are provided in conjunction with the licensing arrangement and the license and the support services have been identified as two separate performance obligations, the transaction price for such contracts are allocated to each performance obligation of the contract based on their relative standalone selling prices. Maintenance revenue is recognized proportionately over the period in which the services are rendered.

Revenue from revenue share is recognized in accordance with the terms of the relevant agreements.

The company accounts for volume discounts and pricing incentives to customers as a reduction of revenue based on the proportionate allocation of the discounts amount to each of the underlying performance obligation that corresponds to the progress by the customer towards earning the discount. Also, when the level of discount varies with increases in levels of revenue transactions, the Company recognizes the liability based on its estimate of the customer's future purchases. If it is probable that the criteria for the discount will not be met, or if the amount thereof cannot be estimated reliably, then discount is not recognized until the payment is probable and the amount can be estimated reliably. The company recognizes changes in the estimated amount of obligations for discounts in the period in which the change occurs.

Unbilled revenue represents revenue recognized in relation to work done until the balance sheet date for which billing has not taken place.

Unearned revenue represents the billing in respect of contracts for which the revenue is not recognized.

The Company collects Goods and Services Tax on behalf of the government and, therefore, these are not economic benefits flowing to the Company. Hence, they are excluded from revenue.

(ii) Interest

Interest income is recognized on a time proportion basis taking into account the carrying amount and the effective interest

(iii) Dividend

(i) Government grants

Government grants are recognized at fair value when there is reasonable assurance that the Company will comply with the conditions attaching to them and the grants will be received. Grants related to purchase of assets are treated as deferred income and allocated to income statement over the useful lives of the related assets while grants related to expenses are deducted in reporting the related expenses in the income statement.

(j) Foreign currency translation

Foreign currency transactions and balances

Initial recognition

Foreign currency transactions are recorded in the functional currency of the Company, by applying to the foreign currency amount the exchange rate between the functional currency and the foreign currency at the date of the transaction.

Conversion

Exchange differences

Notes forming part of Condensed Interim Financial Statements

Translation of foreign operations

The Company presents the condensed interim financial statements in INR which is the functional currency of the Company.

The assets and liabilities of a foreign operation are translated into the reporting currency (INR) at the exchange rate prevailing at the reporting date.

(k) Retirement and other employee benefits

(i) Provident fund

Provident fund is a defined contribution plan covering eligible employees. The Company and the eligible employees make a monthly contribution to the provident fund maintained by the Regional Provident Fund Commissioner equal to the specified percentage of the basic salary of the eligible employees as per the scheme. The contributions to the provident fund are charged to the statement of profit and loss for the period / year when the contributions are due. The Company has no obligation, other than the contribution payable to the provident fund.

(ii) Gratuity

Gratuity is a defined benefit obligation plan operated by the Company for its employees covered under Company Gratuity Scheme. The cost of providing benefit under gratuity plan is determined on the basis of actuarial valuation using the projected unit credit method at the reporting date and are charged to the statement of profit and loss, except for the remeasurements, comprising of actuarial gains and losses which are recognized in full in the statement of other comprehensive income in the reporting period in which they occur. Remeasurements are not reclassified to the statement of profit and loss subsequently.

(iii) Superannuation

Superannuation is a defined contribution plan covering eligible employees. The contribution to the superannuation fund managed by the insurer is equal to the specified percentage of the basic salary of the eligible employees as per the scheme. The contribution to this scheme is charged to the statement of profit and loss on an accrual basis. There are no other contributions payable other than contribution payable to the respective fund.

(iv) Leave encashment

Accumulated leave, which is expected to be utilized within the next twelve months, is treated as short-term employee benefit. The Company measures the expected cost of such absences as the additional amount that it expects to pay as a result of the unused entitlement that has accumulated at the reporting date.

The Company treats accumulated leave expected to be carried forward beyond twelve months, as long-term employee benefit for measurement purposes. Such long-term compensated absences are provided for based on the actuarial valuation using the projected unit credit method at the reporting date. Remeasurements, comprising of actuarial gains and losses are recognized in full in the statement of profit and loss. Expense on non-accumulating compensated absences is recognized in the period in which the absences occur.

The Company presents the entire leave encashment liability as a current liability in the balance sheet, since it does not have an unconditional right to defer its settlement beyond twelve months after the reporting date.

(v) Long service awards

benefit under long service awards scheme is determined on the basis of actuarial valuation using the projected unit credit method at the reporting date. Remeasurements, comprising of actuarial gains and losses are recognized in full in the statement of profit and loss.

(l) Income taxes

Tax expense comprises of current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income Tax Act, 1961 enacted in India and tax laws prevailing in the respective tax jurisdictions where the Company operates. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date. Current income tax relating to items recognized directly in equity is recognized in equity and not in statement of profit and loss.

Notes forming part of Condensed Interim Financial Statements

In the situations where the Company is entitled to a tax holiday under the Income-tax Act, 1961 enacted in India or tax laws prevailing in the respective tax jurisdictions where it operates, no deferred tax (asset or liability) is recognized in respect of to the deduction during the tax holiday period. Deferred tax in respect of temporary differences which reverse after the tax holiday period is recognized in the period / year in which the temporary differences originate.

Minimum alternate tax (MAT) paid in a period / year is charged to the statement of profit and loss as current tax. MAT credit available is recognized as an asset only to the extent that there is convincing evidence that the Company will pay normal income tax during the period, i.e., the period for which MAT credit is allowed to be carried forward. In the period / year in which the Company recognizes MAT credit as an asset in accordance with the Guidance Note on Accounting for Credit Available in respect of Minimum Alternative Tax under the Income-tax Act, 1961, the said asset is created by way of credit evidence that it will pay normal tax during the specified period.

(m) Segment reporting

has disclosed segment information only on the basis of consolidated financial statements which are presented together with the unconsolidated financial statements.

(n) Earnings per share (EPS)

Basic earnings per share are calculated by dividing the net profit for the period / year attributable to equity shareholders by the weighted average number of equity shares outstanding during the period / year. The weighted average number of equity shares outstanding during the reporting period is adjusted for events such as bonus issue, bonus element in a rights issue, share split, and reverse share split (consolidation of shares), if any occurred during the reporting period, that have changed the number of equity shares outstanding, without a corresponding change in resources.

(o) Provisions

A provision is recognized when the Company has a present obligation as a result of past event; it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are determined based on the best estimate of the amount required to settle the obligation at the reporting date. If the effect of time value of money is material, provisions are discounted using a current pre-tax rate that reflects the risks specific to the liability. These estimates are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

Notes forming part of Condensed Interim Financial Statements

(p) Contingent liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably.

(q) Cash and cash equivalents

Cash and cash equivalents in the cash flow statement comprises of cash at bank, cash in hand and short term deposits with an original maturity period of three months or less.

(r) Employee stock compensation expenses

Employees of the Company receive remuneration in the form of share based payment transactions, whereby employees render services as consideration for equity instruments granted (equity-settled transactions).

value of the options at the date of the grant and recognized as employee compensation cost over the vesting period. The cumulative expense recognized for equity-settled transactions at each reporting date until the vesting date reflects the extent ultimately vest.

Where the terms of an equity-settled transaction award are modified, the minimum expense recognized is the expense as if the terms had not been modified, if the original terms of the award are met. An additional expense is recognized for any modification that increases the total fair value of the share-based payment transaction, or is otherwise beneficial to the employee as measured at the date of modification.

The employee stock option expenses in respect of the employees of the subsidiaries are charged to the respective subsidiary.

Notes forming part of Condensed Interim Financial Statements

4. Share capital

			As at December 31, 2020		As at December 31, 2019	As at March 31, 2020
			In Million	In	Million	In Million
	Authorized shares (No. in million)
equity shares of	200 (Corresponding period/ Previous year: 200) 10 each			2,000.00	2,000.00	2,000.00
				2,000.00	2,000.00	2,000.00
in million)	Issued, subscribed and fully paid-up shares (No.
equity shares of each	76.43 (Corresponding period/ Previous year: 76.43 10 each) equity shares of	10		764.25	764.25	764.25
capital	Issued, subscribed and fully paid-up share			764.25	764.25	764.25
	Reconciliation of the shares outstanding at the beginning and at the end of the period/ year The reconciliation of the number of shares outstanding and the amount of share capital is set out below:					(In Million)
	As at		As at			As at
		December 31, 2020		December 31, 2019		March 31, 2020
	No. of shares	Amount	No. of shares	Amount	No. of shares	Amount
Number of shares a the beginning of the period/year	76.43	764.25	79.12	791.19	79.12	791.19
Less: Shares bought back	-	-	2.69	26.94	2.69	26.94
Number of	76.43	764.25	76.43	764.25	76.43	764.25

a) Reconciliation of the shares outstanding at the beginning and at the end of the period/ year

The reconciliation of the number of shares outstanding and the amount of share capital is set out below: (In Million) As at As at As at December 31, 2020 December 31, 2019 March 31, 2020 76.43 764.25 79.12 791.19 79.12 - - 2.69 26.94 2.69




	Number of shares a						791.19
	the beginning of the
	period/year
	Less: Shares						26.94
	bought back
	Number of	76.43	764.25	76.43	764.25	76.43	764.25
	end of the
shares at the	period/ year

b) Terms / rights attached to equity shares

The Company has only one class of equity shares having a par value of 10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees.

The Company declares and pays dividends in Indian rupees. The Finance Act, 2020 in India has repealed Dividend Distribution Tax (DDT). The Companies are now required to pay/ distribute dividend after deducting applicable taxes. The remittance of dividends outside India is governed by Indian law on foreign exchange and is also subject to withholding tax at applicable rates as per Finance Act, 2020.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

c) Aggregate number of bonus shares issued, shares issued for consideration other than cash and shares bought back during the period of five years immediately preceding the reporting date

	For the period of five years ended December 31, 2020 No in Million	For the period of five years ended December 31, 2019 No in Million	For the period of five years ended March 31, 2020 No in Million
Equity shares allotted on March 12, 2015	-	40.00	40.00
as fully paid bonus shares by capitalization
of securities premium 400.00 million
Equity shares bought back	3.575	3.575	3.575

Notes forming part of Condensed Interim Financial Statements

d) Buyback of Equity Shares of the Company: shares of the face value of 10 each from its shareholders/beneficial owners excluding promoters, promoter group and not exceeding ).

The buyback was offered to all eligible equity shareholders of the Company (other than the Promoters, the Promoter Group and Persons in Control of the Company) under the open market route through the stock exchanges. The buyback of equity shares through the stock exchange commenced on February 8, 2019 and was completed on June 27, 2019. During this buyback period the Company had purchased and extinguished a total of 3,575,000 equity shares from the stock exchange at an average buy back price of 628.93/- per equity share comprising 4.47% of the pre buyback paid-up equity share capital of the Company. The buyback resulted in a cash outflow of 2,248.42 million (excluding transaction costs). The Company funded the buyback from utilization of its securities premium and free reserves. The total number of equity shares outstanding as on date, post buyback stands at 76,425,000. e) Details of shareholders holding more than 5% shares in the Company

Name of the shareholder*		As at December 31, 2020		As at December 31, 2019	As at March 31, 2020
	No. in million	% Holding	No. in million	% Holding	No. in million	% Holding
Dr. Anand Deshpande jointly with Mrs. Sonali Anand Deshpande	22.96	30.04	22.95	30.04	22.95	30.04
Schemes of HDFC Mutual Fund	6.03	7.88	5.65	7.40	6.53	8.54

	Co ute mp rs	ipm ent equ s

As at A pril 1, 2 020 .92 206 06 2,3 87. 34 1,8 51. 58 53. 38 1,3 77. 21. 12 .31 521 4 7.2 6,4 25. 95 Add ition 7 0.5 .32 292 5.9 4 21 32. 51 32. 363 .55 s - - - Dis als 45 38. 42 20. 0.3 3 0.8 7 60. 07 pos - - - - As at D mb er 3 1, 2 020 .92 206 63 2,3 87. 21 2,1 05. 52 59. 17 1,3 89. 20. 79 .95 552 4 7.2 6,7 29. 43 ece As at A pril 1, 2 020 11 1,0 61. 4 1,54 8.7 93 50. 54 1,1 90. 19. 32 .49 502 5 4.0 4,3 77. 18 - Cha for 61 72. .50 157 2.1 32 38. 0.9 2 53 12. 0 0.7 284 the riod 7 .75 rge pe - Dis als 51 26. 32 20. 0.2 5 0.7 6 47. 84 pos - - - - As at D mb er 3 1, 2 020 72 1,1 33. 73 1,6 79. 10 53. 54 1,2 08. 19. 99 .26 514 5 4.7 4,6 14. 09 ece - As at D mb er 3 1, 2 020 .92 206 91 1,2 53. .48 425 6.4 2 .63 180 0.8 0 69 38. 9 2.4 2,1 15. 34 ece As at M h 3 1, 2 020 .92 206 95 1,3 25. .60 302 2.6 5 .84 186 1.8 0 82 18. 9 3.1 2,0 48. 77 arc As at A pril 1, 2 020 .91 358 50 37. 396 .41 Add ition .55 156 156 .55 s - Dis als 04 55. 55. 04 pos - As at D mb er 3 1, 2 020 .42 460 50 37. 497 .92 ece As at A pril 1, 2 020 .41 126 0 0.6 127 .01 Cha for 62 84. 0.4 85. 06 the riod 4 rge pe Dis als 01 35. 35. 01 pos - As at D mb er 3 1, 2 020 .02 176 4 1.0 177 .06 ece As at D mb er 3 1, 2 020 284 .40 36. 46 320 .86 ece As at M h 3 1, 2 020 232 .50 36. 90 269 .40 arc As at A pril 1, 2 019 - - - Add ition s (T sitio nal imp act ado ptio f In d A S 1 16) .91 358 358 .91 ran on n o - As at D mb er 3 1, 2 019 .91 358 358 .91 ece - As at A pril 1, 2 019 - - - Cha for 99 94. 94. 99 the riod rge pe - As at D mb er 3 1, 2 019 99 94. 94. 99 ece - As at D mb er 3 1, 2 019 263 .92 263 .92 ece -											ipm ent equ s	ipm ent equ	imp ent rov em s	Fur nitu nd re a




	Com				Fur nitu nd
	put ers	ipm ent equ s	ipm ent equ	imp ent rov em s	re a

2,38 7.00

ition 0.30 .92 201 0.40 6 25.5 8.40 236 .58 s - - - ls 0 51.3 0.03 9 11.4 2.55 65.3 osa - - - - at D mb er 3 1, 2 019 .92 206 7.30 2,38 5.55 1,83 9 53.5 1 1,39 0.1 12 21. .94 520 8.44 6,42 ece 964 .75 0.02 1,46 77 48. 8 1,14 4.3 8 17.8 .47 482 3 4.2 4,12 - for the iod 3 72.4 .98 123 1.71 9 51.5 1.08 2 16.7 0.79 268 rge per - ls 18 51. 0.03 9 11.4 2.54 65.2 osa - - - - at D mb er 3 1, 2 019 7.18 1,03 2.82 1,53 5 50.4 4.48 1,18 6 18.9 .65 496 5.02 4,32 ece - at D mb er 3 1, 2 019 .92 206 0.12 1,35 .73 302 3.14 .63 205 6 2.1 9 24.2 3.42 2,09 8.4 1 ece at M h 3 1, 2 019 .92 206 2.25 1,42 .91 224 5 4.4 .66 231 3.24 2 32.6 1 4.2 2,13 arc Com Fur nitu nd put ers re a ipm ent ipm ent imp ent equ s equ rov em s 206 .92 2,38 7.00 3 1,68 4.9 2 53.2 6.04 1,37 12 21. .09 515 8.44 6,25 ition 0.06 .42 248 0.39 9 25.2 9.06 283 s - - - ls 1 82.0 0.03 5 23.9 2.84 1.20 110 osa - - - at M h 3 1, 2 020 .92 206 7.06 2,38 1.34 1,85 8 53.5 7.38 1,37 12 21. .31 521 7.24 6,42 arc 964 .75 0.02 1,46 77 48. 8 1,14 4.3 8 17.8 .47 482 3 4.2 4,12 - for the 6 96.3 .46 170 2.19 0 66.3 1.44 6 22.8 1.02 360 rge yea r - ls 4 81.7 0.03 14 20. 2.84 1.20 105 osa - - - at M h 3 1, 2 020 1.11 1,06 8.74 1,54 3 50.9 0.54 1,19 2 19.3 .49 502 5 4.0 4,37 arc - at M h 3 1, 2 020 .92 206 5.95 1,32 .60 302 2.65 .84 186 1.80 2 18.8 3.19 2,04 arc at M h 3 1, 2 019 .92 206 2.25 1,42 .91 224 5 4.4 .66 231 3.24 2 32.6 1 4.2 2,13 arc - - - s (T of I S 1 16) ition ition al im t on ad opt ion nd A 358 .91 37.5 0 396 .41 rans pac at M h 3 1, 2 020 .91 358 0 37.5 396 .41 arc - - - for the 126 .41 0.60 127 .01 rge yea r at M h 3 1, 2 020 .41 126 0.60 127 .01 arc at M h 3 1, 2 020 232 .50 36.9 0 269 arc	Add Disp As Cha Disp As As As Add Disp As Cha Disp As As As Add As Cha As As						206 .92	2,38 7.00	3 1,68 4.9	2 53.2	6.04 1,37	12 21.	.09 515 8.44	6,25 2.76

3.97 2.50 .30 4 5.56 0.26 2.76 .22 .03 5.95 2.50 .63 .95 7.18 8.77 0.26 .40														7

			(ILL A MILLION)
		Office premises Leasehold land	Total
Office premises
Gross block (At cost)
As at April 1, 2019	$\overline{a}$
Additions (Transitional impact on adoption of Ind AS 116)	358.91	37.50	396.41
As at March 31, 2020	358.91	37.50	396.41
Accumulated depreciation
As at April 1, 2019	$\overline{a}$
Charge for the year	126.41	0.60	127.01
As at March 31, 2020	126.41	0.60	127.01
Net block
As at March 31, 2020	232.50	36.90	269.40

Persistent Systems Limited

















		rights


	743.67	261.74	1,005.41
Additions	157.21	-	157.21
As at December 31, 2020	900.88	261.74	1,162.62


Charge for the period	696.70 41.46	261.74 -	958.44 41.46
As at December 31, 2020	738.16	261.74	999.90


As at December 31, 2020	162.72	-	162.72
As at March 31, 2020	46.97	-	46.97




		rights


Additions	713.08 22.29	261.74 -	974.82 22.29
As at December 31, 2019	735.37	261.74	997.11


	629.22	261.74	890.96

Charge for the period	55.37	-	55.37
As at December 31, 2019	684.59	261.74	946.33

		rights















	713.08	261.74	974.82
Additions	22.29	-	22.29
As at December 31, 2019	735.37	261.74	997.11

	629.22	261.74	890.96
Charge for the period	55.37	-	55.37
As at December 31, 2019	684.59	261.74	946.33

As at December 31, 2019	50.78	-	50.78
As at March 31, 2019	83.86	-	83.86


		rights


Additions	713.08 30.59	261.74 -	974.82 30.59
As at March 31, 2020	743.67	261.74	1,005.41


	629.22	261.74	890.96
Charge for the year	67.48	-	67.48
As at March 31, 2020	696.70	261.74	958.44

As at March 31, 2020	46.97	-	46.97
As at March 31, 2019	83.86	-	83.86


		For the quarter ended	For the nine months ended		For the year ended
		December 31, 2019	December 31, 2020	December 31, 2019	March 31, 2020
	December 31, 2020			268.30	360.63
On Property, Plant and Equipment	99.40	90.87	284.75
On Other intangible assets	14.66	17.64	41.46	55.37	67.48
On Right of use assets	26.34	31.44	85.06	94.99	127.01
	140.40	139.95	411.27	418.66	555.12

				For the year ended




140.40	139.95	411.27	418.66	555.12

Persistent Systems Limited

	As at	As at	As at
	December 31, 2020	December 31, 2019	March 31, 2020
Investments carried at cost Unquoted investments Investments in equity instruments
Persistent Systems, Inc.
up	2,478.01	2,478.01	2,478.01
Persistent Systems Pte Ltd.	2,478.01 15.50	2,478.01 15.50	2,478.01 15.50
up	15.50	15.50	15.50
Persistent Systems France SAS up	97.47	97.47	97.47
	97.47	97.47	97.47
Persistent Systems Malaysia Sdn. Bhd.	102.25	102.25	102.25
up	102.25	102.25	102.25
Persistent Systems Germany GmbH	1,265.91	1,265.91	1,265.91
EUR 1 each, fully paid up	1,265.91	1,265.91	1,265.91
C Software Private Limited	376.61	-	-
(refer note 35)	376.61	-	-
-In associates
	0.05	0.05	0.05
up Less : Impairment	(0.05)	(0.05)	(0.05)
	-	-	-
	4,335.75	3,959.14	3,959.14
Investments carried at amortised cost Quoted Investments In bonds	2,593.95	1,989.37	2,171.52
2,236.81 million)]
Add: Interest accrued on bonds	87.33 2,681.28	75.04 2,064.41	68.69 2,240.21

Quoted Investments
Fair value of long term mutual funds (Refer Note 6a)	953.26 953.26	1,524.30 1,524.30	2,174.51 2,174.51
Unquoted Investments
-Others* Altizon Systems Private Limited
fully paid up	6.00	6.00	6.00
	6.00 959.26	6.00 1,530.30	6.00 2,180.51
	7,976.29	7,553.85	8,379.86

	0.05 3,634.54 4,341.80	0.05 3,588.71 3,965.19	0.05 4,414.72 3,965.19
* Investments, where the Company does not have joint-control or significant influence including	situations where such	joint-control or significant	influence is
intended to be temporary, are classified as "investments in others"

	As at De mb 31 20 20 ce er ,	As at De mb 31 20 19 ce er ,	As at Ma rch 31 20 20 ,
Ax is M utu al F und	49 8.6 4	53 5.7 1	89 8.9 3
IDF C M utu al F und	41 8.7 8	31 9.7 5	63 0.0 6
UT I M utu al F und	-	103 .78	105 .73
Ko tak M al F und utu	-	139 .04	105 .86
Su nda M al F und utu ram	35 .84	32 .47	33 .15
ICI CI Pru de ntia l M utu al F und	-	138 .75	14 1.3 8
DS P M utu al F und	-	34 .40	35 .00
PG ( for ) IM Ind ia M utu al F und rly kno DH FL Pra rica M utu al F und me wn as me	-	34 .37 81 .20	35 .03 82 .65
Su ife Ad itya Bi rla n L Mu tua l F und SB I M utu al F und	-	69 .82	71 .06
HD FC M utu al F und	- -	35 .01	35 .66
	95 3.2 6	1, 524 .30	2, 174 .51

Persistent Systems Limited


	As at December 31, 2020	As at December 31, 2019	As at March 31, 2020

Carried at amortised cost Security deposit
Unsecured, considered good	108.12 108.12	123.57 123.57	123.57 123.57
Inter corporate deposits
Unsecured, considered good (refer note 31)	35.00	-	-
Unsecured, credit impaired	0.58 35.58	0.58 0.58	0.58 0.58
Less: Impairment Add: Interest accrued but not due on Inter corporate deposits	(0.58) 0.67	(0.58) -	(0.58) -
	35.67	-	-
	143.79	123.57	123.57

	As at	As at	As at
	December 31, 2020	December 31, 2019	March 31, 2020
Non-current bank balances (Refer note 14) Add: Interest accrued but not due on non-current bank deposits	43.92 0.87	444.81 6.89	344.55 14.38
Non-current deposits with banks (Carried at amortised cost)	44.79	451.70	358.93
Deposit with financial institutions	430.00	430.00	430.00
Add: Interest accrued but not due on deposit with financial institutions Less: Credit impaired	0.98 (430.98)	0.98 (382.50)	0.98 (430.98)
Non-current deposits with financial institutions (Carried at amortised cost)	-	48.48	-
	44.79	500.18	358.93

	As at December 31, 2020	As at December 31, 2019	As at March 31, 2020

Differences in book values and tax base values of block of Property, plant and equipment and other intangible assets	-	23.44	24.30
Capital gains (net)	69.83	73.40	76.67
	64.87	2.03	12.58
Others

	As at	As at	As a
	December 31, 2020	December 31, 2019	March 31, 2020
	In ₹ Million	In ₹ Million	In ₹ Millior
Non-current bank balances (Refer note 14)	43.92	444.81	344.55
Add: Interest accrued but not due on non-current bank deposits	0.87	6.89	14.38
Non-current deposits with banks (Carried at amortised cost)	44.79	451.70	358.93
Deposit with financial institutions	430.00	430.00	430.00
Add: Interest accrued but not due on deposit with financial institutions	0.98	0.98	0.98
Less: Credit impaired	(430.98)	(382.50)	(430.98
Non-current deposits with financial institutions (Carried at amortised cost)		48.48
	44.79	500.18	358.93

		0.58
		(0.58)
		- -












		358.93


		As at
December 31, 2020	December 31, 2019	March 31, 2020

		24.30
		76.67
		12.58
		113.55

87.87	60.48	47.15
66.33	47.73	51.38
32.39	30.01	33.45
59.92	72.54	67.69
		31.86
		-
		199.37
394.52	349.16	430.90

		317.35

As at	As at	As at
December 31, 2020	December 31, 2019	March 31, 2020
		27.14
		5.70
296.55	296.55	296.55
	334.04	329.39
324.33

(This space is intentionally left blank)
	35.58 0.67 35.67 44.79 As at - 69.83 64.87 134.70 27.98 2.78 117.25 259.82 10.62 17.16	0.58 (0.58) (0.58) - - 500.18 As at 23.44 73.40 2.03 98.87 33.33 - 105.07 250.29 - 37.49

324.33	334.04	329.39

Persistent Systems Limited


	As at	As at	As at
	December 31, 2020	December 31, 2019	March 31, 2020

- Quoted investments

Fair value of current mutual funds (Refer Note 11a)	5,629.40 5,629.40	2,309.43 2,309.43	5,164.77 5,164.77

	5,629.40	2,309.43	5,164.77
	5,629.40	2,309.43	5,164.77
	-	-	-

	As at De ber 31 , 20 20 cem	As at De ber 31 , 20 19 cem	As at Ma rch 31 , 20 20
ICI CI Pru den tial Mu tua l Fu nd	857 .41	45 1.0 3	940 .50
Ad itya Bi rla Su n L ife Mu tua l Fu nd	747 .63	432 .29	973 .04
Ax is M al F und utu	696 .54	208 .28	396 .02
UT I M utu al F und	686 .83	120 .39	809 .46
Kot ak Mu l Fu nd tua	685 .17	174 .48	42 1.5 1
IDF C M utu al F und	382 .36	429 .65	640 .78
FC HD Mu tua l Fu nd	822 .88	183 .65	185 .88
DS P M utu al F und	65. 16	-	-
SB I M utu al F und	165 .10	-	-
L&T Mu tua l Fu nd	483 .40	247 .93	734 .90
DH FL Pra rica Mu tua l Fu nd me Ind ia M utu al F und for kno Re lian Mu tua l Fu	36. 92	- 61. 73	- 62. 68
Nip ( rly nd) pon me wn as ce	- 5,6 29. 40	2,3 09. 43	5,1 64. 77

Persistent Systems Limited



	As at December 31, 2020	As at December 31, 2019	As at March 31, 2020
Unsecured, considered good Unsecured, credit impaired	2,844.01 128.70	2,973.90 119.25	2,883.09 132.91
	2,972.71	3,093.15	3,016.00
Less : Allowance for credit loss	(128.70) 2,844.01	(119.25) 2,973.90	(132.91) 2,883.09
	2,844.01	2,973.90	2,883.09
*includes dues from related parties (refer note 31)

	As at	As at	As at
	December 31, 2020	December 31, 2019	March 31, 2020
Cash on hand	0.05	0.12	0.15
Balances with banks
On current accounts# On saving accounts	188.17 10.27	157.26 7.26	198.79 0.36
On Exchange Earner's Foreign Currency accounts	277.92	273.03	261.86
On deposit accounts with original maturity less than three months	97.50 573.91	- 437.67	71.47 532.63
# Out of the cash and cash equivalent balance as at December 31, 2020, the Company can	utilise 0.25 Million	(Corresponding period : 5.16	Million Previous


	As at	As at	As at
	December 31, 2020	December 31, 2019	March 31, 2020
Deposits with banks*	7,107.09	5,762.87	2,643.65
	262.17	274.92	116.55

Add: Interest accrued but not due on deposits with banks Deposits with banks (Carried at amortised cost)	7,369.26	6,037.79	2,760.20
Less: Deposit with maturity more than twelve months from the Balance Sheet date disclosed under non-current financial assets (Refer note 8)	(43.92)	(444.81)	(344.55)

	As at	As at	As at
	December 31, 2020	December 31, 2019	March 31. 2020
	In ₹ Million	In ₹ Million	In ₹ Million
Cash and cash equivalents as presented in cash flow statement
Cash on hand	0.05	0.12	0.15
Balances with banks
On current accounts#	188.17	157.26	198.79
On saving accounts	10.27	7.26	0.36
On Exchange Earner's Foreign Currency accounts	277.92	273.03	261.86
On deposit accounts with original maturity less than three months	97.50		71.47
	573.91	437.67	532.63

Unsecured, credit impaired*	2,844.01	2,973.90	2,883.09
	128.70	119.25	132.91


	2,844.01	2,973.90	2,883.09
	2,844.01	2,973.90	2,883.09











	573.91	437.67	532.63

	As at	As at	As at
	December 31, 2020	December 31, 2019	March 31, 2020



Deposits with banks*	7,107.09	5,762.87	2,643.65
Add: Interest accrued but not due on deposits with banks	262.17	274.92	116.55
Deposits with banks (Carried at amortised cost) Less: Deposit with maturity more than twelve months from the Balance Sheet date disclosed under non-current financial assets (Refer note 8)	7,369.26 (43.92)	6,037.79 (444.81)	2,760.20 (344.55)
Less: Interest accrued but not due on non-current deposits with banks (Refer note 8)	(0.87)	(6.89)	(14.38)
	7,324.47	5,586.09	2,401.27
Balances with banks on unpaid dividend accounts**	2.84	2.42	4.05
	7,327.31	5,588.51	2,405.32
* Out of the balance, fixed deposits of 673.71 million (Corresponding period : 1,838.75 million credit facilities and bank guarantees availed by the Company.	Previous year : 71.10	million) have been	earmarked against
** The Company can utilize these balances only towards settlement of the respective unpaid dividend.

Persistent Systems Limited




	As at December 31, 2020	As at December 31, 2019	As at March 31, 2020

Carried at amortised cost
Unsecured, credit impaired
- Klisma e-Services Private Limited	27.43	27.43	27.43
	27.43	27.43	27.43

Less: Impairment	(27.43)	(27.43)	(27.43)
Security deposits	-	-	-
Unsecured, considered good	0.10	0.10	4.76
	0.10	0.10	4.76
	0.10	0.10	4.76


	As at	As at	As at
	December 31, 2020	December 31, 2019	March 31, 2020

Forward contracts receivable	290.05	45.26	-

Persistent Systems, Inc.	6.15	178.34	63.08
Persistent Systems Pte Ltd.	-	2.37	-
Persistent Systems France SAS Persistent Telecom Solutions Inc.	0.38 0.01	0.49 4.63	6.71 3.05

Unsecured, considered good	0.10	0.10	4.76
	0.10	0.10	4.76















Persistent Systems Malaysia Sdn. Bhd.	-	3.11	0.15
Persistent Systems Lanka (Private) Limited	0.02	2.67	2.67
Aepona Limited	1.48	0.10	-
PARX Consulting GmbH	-	-	0.04
Persistent Systems Israel Ltd.	-	0.75	1.05
Persistent Systems Mexico, S.A. de C.V	-	1.12	1.12
	-	-	0.05
PARX Werk AG	- -	- -	- 1.79
Persistent Systems Germany GmbH	-	0.61	0.31
	8.04	194.19	80.02


Klisma e-Services Private Limited	0.81	0.81	0.81
Less: Impairment of current financial assets	(0.81)	(0.81)	(0.81)
	-	-	-
Other advances	20.87	-	-

Unbilled revenue	1,751.88	1,897.32	2,000.05
	2,070.84	2,136.77	2,080.07
17. Other current assets

	As at	As at	As at
	December 31, 2020	December 31, 2019	March 31, 2020

Advances recoverable in cash or kind or for value to be received	294.45	279.04	460.97
Excess fund balance with Life Insurance Corporation	68.08	103.85	128.54
Other advances (Unsecured, considered good)
VAT receivable (net)	-	3.84	31.50
Service tax and GST receivable (net) (refer note 32)	1,015.41	876.46	864.36
	1,015.41	880.30	895.86

	1,377.94	1,263.19	1,485.37

VAT receivable (net)	-	3.84	31.50
Service tax and GST receivable (net) (refer note 32)	1,015.41	876.46	864.36
	1,015.41	880.30	895.86
	1,377.94	1,263.19	1,485.37

Persistent Systems Limited


	As at December 31, 2020	As at December 31, 2019	As at March 31, 2020
Unsecured Borrowings carried at amortised cost
Term loans Indian rupee loan from others	8.75	13.34	11.93
Interest accrued but not due on term loans	0.06	0.09	0.18
	8.81	13.43	12.11
Less: Current maturity of long-term borrowings transferred to other current financial liabilities (Refer note 22)	(3.21)	(4.85)	(4.85)
Less: Current maturity of interest accrued but not due on term loan transferred to other current financial liabilities (Refer note 22)	(0.06)	(0.09)	(0.18)
	(3.27)	(4.94)	(5.03)
	5.54	8.49	7.08
The term loans from Government departments have the following terms and conditions:
Loan I - amounting to 1.34 million (Corresponding Period: 4.10 million Previous been guaranteed by a bank guarantee by the Company and is repayable in ten equal from March 2016.	year 2.69 million) semi annual instalments	with interest payable @ over a period of five	2% per annum has years commencing
Loan II - amounting to million (Corresponding Period: 9.24 million Previous repayable in ten equal annual instalments over a period of ten years commencing from September 2015.	year 9.24 million)	with Interest payable	@ 3% per annum

		As at	As at
	As at December 31, 2020	December 31, 2019	March 31, 2020
Provision for employee benefits
- Long service awards	240.67 240.67	189.65 189.65	182.79 182.79

	As at	As at	As at


Provision for employee benefits
- Long service awards	240.67	189.65	182.79
	240.67	189.65	182.79

Persistent Systems Limited



	As at December 31, 2020	As at December 31, 2019	As at March 31, 2020
Lease liabilities	387.93	394.76	356.64
Less: Current portion of lease liabilities	(82.04) 305.89	(182.69) 212.07	(165.38) 191.26

			For the year ended
	For the nine months ended December 31, 2020	December 31, 2019	March 31, 2020
Opening balance	356.64	-	-
Additions (Transitional impact on adoption of Ind AS 116) Additions	- 156.55	501.15 -	501.15 -
Deletions	(23.23) 26.78	- 32.90	- 43.86
Less: Payments made	(128.81)	(139.29)	(188.37)
	387.93	394.76	356.64

	As at December 31, 2020	As at December 31, 2019	As at March 31, 2020

Trade payables for goods and services*	836.66	854.36	972.49
*Includes dues payables to related parties (refer note 31)	836.66	854.36	972.49
Disclosure of payable to vendors as defined under the "Micro, Small and Medium available with the Company regarding the status of registration of such vendors made by the Company. There are no overdue principal amounts interest payable date. There are no delays in payment made to such suppliers during the period or	Enterprise Development under the said Act, as per the amounts for delayed payments for any earlier periods years	Act, 2006" is based intimation received from to such vendors at and accordingly there	on the information them on requests the Balance Sheet is no interest paid

Trade payables for goods and services*	836.66	854.36	972.49


	836.66	854.36	972.49
*Includes dues payables to related parties (refer note 31)

	As at	As at	As at
	December 31, 2020	December 31, 2019	March 31, 2020

Capital creditors	19.96	17.90	36.23
Current maturity of long term-borrowings (refer note 18)	3.21	4.85	4.85
Current maturity of interest on long-term borrowings (refer note18)	0.06	0.09	0.18

Accrued employee liabilities	108.50	76.05	105.64
Unpaid dividend *	2.84	2.42	4.05
Other liabilities	-	-	4.40


Forward contracts payable	-	-	387.89


Persistent Systems Pte Ltd	-	-	2.77
PARX Werk AG	-	-	2.55
Aepona Limited	-	-	1.17
	-	-	6.49

	134.57	101.31	549.73



* Unpaid dividend is credited to Investor Education and Protection Fund as and when due.



	As at	As at	As at
	December 31, 2020	December 31, 2019	March 31, 2020

Unearned revenue	268.31	141.42	135.88
Advance from customers (refer note 31)	608.19	672.4	558.34
Other payables
- Statutory liabilities	228.98	180.01	146.89
- Other liabilities	21.51	10.33	9.91
	1,126.99	1,004.16	851.02



	As at	As at	As at
	December 31, 2020	December 31, 2019	March 31, 2020

Provision for employee benefits
- Leave encashment	349.12	240.31	187.35
- Long service awards	22.86	11.13	21.35
- Other employee benefits	705.69 1,077.67	258.00 509.44	381.68 590.38

	As at	As at	As at
	December 31, 2020	December 31, 2019	March 31, 2020

Unearned revenue	268.31	141.42	135.88
Advance from customers (refer note 31)	608.19	672.4	558.34
Other payables
- Statutory liabilities	228.98	180.01	146.89
- Other liabilities	21.51	10.33	9.91
	1,126.99	1,004.16	851.02

Provision for employee benefits

- Long service awards	22.86	11.13	21.35
- Other employee benefits	705.69	258.00	381.68
	1,077.67	509.44	590.38

Persistent Systems Limited



		For the quarter ended	For the nine months ended		For the year ended
	December 31, 2020	December 31, 2019	December 31, 2020	December 31, 2019	March 31, 2020

Software services Software licenses	6,124.95 301.39	5,324.95 123.84	17,519.77 429.73	15,151.10 268.73	20,775.56 305.66
	6,426.34	5,448.79	17,949.50	15,419.83	21,081.22

26. Other income

		For the quarter ended	For the nine months ended		For the year ended

Persistent Systems Limited


		For the quarter ended	For the nine months ended		For the year ended


					305.66
	6,426.34	5,448.79	17,949.50	268.73 15,419.83	21,081.22

26. Other income
		For the quarter ended	For the nine months ended		For the year ended
	December 31, 2020	December 31, 2019	December 31, 2020	December 31, 2019	March 31, 2020

Interest income
On deposits carried at amortised cost On others	99.68 45.05	100.65 42.22	270.95 125.35	289.08 119.20	373.29 152.47
	22.03	107.79	(61.41)	334.93	274.26
Profit on sale of Property, Plant and Equipment (net)	3.38	-	6.63	0.94	-
Dividend income from investments*	36.89	64.43	131.45	272.26	410.72
Profit on sale of investments (net)	35.81	8.78	413.37	152.95	164.81
designated at FVTPL	46.96	57.72	(127.23)	37.25	119.02
Miscellaneous income	35.63	28.14	67.30	69.11	104.47
	325.43	409.73	826.41	1,275.72	1,599.04
*Includes dividends received from investments in wholly owned subsidiaries (refer note 31)

		For the quarter ended	For the nine months ended		For the year ended
	December 31, 2020	December 31, 2019	December 31, 2020	December 31, 2019	March 31, 2020

Salaries, wages and bonus	3,350.79	2,623.30	9,161.68	7,503.80	10,178.10
Contribution to provident and other funds	177.48	164.15	468.78	235.17	372.96
Staff welfare and benefits	87.40	101.94	234.55	306.53	417.99
Share based payments to employees	83.97 3,699.64	16.55 2,905.94	156.98 10,021.99	39.30 8,084.80	60.01 11,029.06

- Related parties (refer note 31)	327.56	378.18	1,063.44	1,232.13	1,565.67
- Others	121.26	84.12	246.84	198.61	259.70
	448.82	462.30	1,310.28	1,430.74	1,825.37

Interest income


	22.03	107.79	(61.41)	334.93	274.26
Profit on sale of Property, Plant and
Equipment (net)


designated at FVTPL

	325.43	409.73	826.41	1,275.72	1,599.04

*Includes dividends received from investments in wholly owned subsidiaries (refer note 31)
		For the quarter ended	For the nine months ended		For the year ended



Salaries, wages and bonus	3,350.79	2,623.30	9,161.68	7,503.80	10,178.10
Contribution to provident and other funds	177.48	164.15	468.78	235.17	372.96
Staff welfare and benefits	87.40	101.94	234.55	306.53	417.99
Share based payments to employees	83.97	16.55	156.98	39.30	60.01
	3,699.64	2,905.94	10,021.99	8,084.80	11,029.06

- Related parties (refer note 31)	327.56	378.18	1,063.44	1,232.13	1,565.67
- Others	121.26	84.12	246.84	198.61	259.70
	448.82	462.30	1,310.28	1,430.74	1,825.37
	4,148.46	3,368.24	11,332.27	9,515.54	12,854.43

28. Other expenses*

Persistent Systems Limited








28. Other expenses*

	For the quarter ended December 31, 2020	December 31, 2019	For the nine months ended December 31, 2020	December 31, 2019	For the year ended March 31, 2020

Travelling and conveyance	8.13	79.94	42.87	249.25	338.29
Electricity expenses (net)	19.16	25.30	52.41	76.73	97.02
Internet link expenses Communication expenses	12.86 15.56	4.29 16.17	40.47 68.19	30.81 52.04	48.83 72.52
Recruitment expenses	41.69	15.48	62.12	48.70	69.43
Training and seminars	8.23	10.41	20.80	16.31	22.82
Purchase of software licenses and support expenses	354.02	348.39	727.77	680.01	852.77
Bad debts	43.37	-	43.37	-	-
Provision for doubtful debts (net) Rent	(52.23) 17.17	(2.02) 14.34	(4.67) 59.49	27.88 45.35	47.31 68.33
Insurance	7.83	6.66	23.78	18.94	25.91
Rates and taxes	15.79	7.95	44.43	34.39	49.17
Legal and professional fees	38.28	28.92	116.87	133.97	187.49
Repairs and maintenance
- Plant and Machinery - Buildings	27.58 4.39	27.36 5.51	72.95 15.09	84.11 17.69	109.12 21.32
- Others	(1.13)	4.06	12.38	13.55	18.21
Selling and marketing expenses	210.96	176.29	543.45	517.29	660.03
Fees for sales enablement services	-	231.02	-	584.50	627.90
Advertisement, conference and sponsorship fees	1.16	11.34	2.70	15.59	23.02
Computer consumables	1.31	1.17	2.07	3.70	4.47
Auditor's remuneration Donations	1.11 35.00	1.16 18.81	4.35 161.91	6.64 56.41	10.26 86.11
Books, memberships, subscriptions	3.99	4.23	10.64	15.82	22.42
	-	50.00	-	200.00	248.48
Provision for doubtful deposits (refer note 33)	-	-	-	-	5.50
Loss on sale of Property, Plant and Equipment (net)	1.00	1.18	3.66	4.70	6.58
Directors' sitting fees		3.60	7.86	11.25	14.85
Directors' commission	2.36
Miscellaneous expenses	27.44 845.03	41.32 1,132.88	91.17 2,226.13	116.07 3,061.70	158.98 3,897.14

29. Earnings per share

Persistent Systems Limited


29. Earnings per share
			For the quarter ended		For the nine months ended	For the year ended
		December 31, 2020	December 31, 2019	December 31, 2020	December 31, 2019	March 31, 2020

			899.56	3,650.14	2,802.41	4,077.23
	(A)	1,259.03

Weighted average number of equity shares	(B)	76,425,000	76,425,000	76,425,000	76,770,600	76,684,672

Number of equity shares	(C)	76,425,000	76,425,000	76,425,000	76,770,600	76,684,672
		16.47	11.77	47.76	36.50	53.17
		16.47	11.77	47.76	36.50	53.17


		December 31, 2020	For the quarter ended December 31, 2019	December 31, 2020	For the nine months ended December 31, 2019	For the year ended March 31, 2020
Number of shares considered as basic weighted average shares outstanding		76,425,000	76,425,000	76,425,000	76,770,600	76,684,672
Add: Effect of dilutive issues of stock options		-	-	-	-	-
outstanding		76,425,000	76,425,000	76,425,000	76,770,600	76,684,672

	For the quarter ended		For the nine months ended



76,425,000	76,425,000	76,425,000	76,770,600	76,684,672


		As at De	r 3 1, 202 0	As at De	r 3 1, 20 19	As at M	1, 202 0
As set
Inv est
Inv est
Inv est
Inv Loa
De pos acc
Ca sh
Tra de
Fo rwa
Un bill
Oth er



Bo rro
Lea
Tra de
Oth
Fo rwa
Lev m o
	( Thi s s	is i ntio nal nte pa ce	ly left bla nk)

31 (i) Significant related party transactions (excluding transactions with Key Management personnel and their relatives)
--------------------------------------------------------------------------------------------------------------------------

						(in ₹ Million)
	Name of the related party and nature of relationship		For the quarter ended		For the nine months ended	For the year ended
		December 31, 2020	December 31, 2019	December 31. 2020	December 31. 2019	March 31, 2020
Sale of software services	Subsidiaries
	Persistent Systems, Inc.	2.132.54	1.799.17	6,118.54	5.017.60	6.917.59
	Other subsidiaries	114.64	99.90	315.47	292.60	379.68

	Entity over which a key management personnel has significant influence
	Deazzle Services Private Limited				4.90	7.47
	Total	2,247.18	1,899.07	6,434.01	5,315.10	7,304.74

Fees for sales & marketing services	Subsidiaries
	Persistent Systems, Inc.					20.77
	Total	ä,		ä,	×	20.77
Cost of professionals (excluding reimbursement of expenses)	Subsidiaries Persistent Systems, Inc.	233.35	272.68	806.41	918.98	1,175.54
	Other subsidiaries	94.21	103.26	257.03	310.91	390.13
	Total	327.56	375.94	1,063.44	853.95	1,565.67
Legal and professional fees	Subsidiaries
	Other subsidiaries				ä,	0.34
	Entity over which a key management personnel has
	significant influence
	Azure Associates, LLC		1.83		12.38	10.63
	Total	$\cdot$	1.83	$\bullet$	12.38	10.97
Recovery of cost of assets	Subsidiaries
	Persistent Systems, Inc.					17.29
Purchase of Software	Total Subsidiaries	٠	$\cdot$	÷	÷,	17.29
	Persistent Systems, Inc.	49.36	9.99	50.08	15.07	17.94
	Other subsidiaries	0.55		3.81		3.54
	Total	49.91	9.99	53.89	15.07	21.48
Selling and marketing expenses	Subsidiaries
	Persistent Systems, Inc.	210.25	756.53	542.74	1,074.59	627.44
	Other subsidiaries	0.71	3.55	0.71	25.82	31.00
	Total	210,96	760,08	543.45	1,100.41	658.44
Fees for sales enablement services	Subsidiaries	í.	÷.
	Persistent Systems, Inc. Other subsidiaries				353.48	614.52 13.38
	Total	ä,	٠	٠	353.48	627.90
Commission received on corporate	Subsidiaries
quarantee	Persistent Systems, Inc.	0.45	0.45	2.18	2.32	2.80
	Total	0.45	0.45	2.18	2.32	2.80
Dividend income	Subsidiaries
	Persistent Systems Pte Ltd	36.89	64.43	70.33 61.12	128.26 133.99	180.37 220.31
	Persistent Systems Malaysia Sdn. Bhd. Total	36.89	64.43	131.45	262.25	400.68
Reimbursement of expenses received	Subsidiaries
	Persistent Systems, Inc.		ä,	0.71	$\blacksquare$	19.44
	Other subsidiaries					0.03
	Total	÷,	÷,	0.71	$\bar{\phantom{a}}$	19.47
Travelling and conveyance	Subsidiaries
	Persistent Systems, Inc. Other subsidiaries		1.03		1.76	1.08 0.46
	Total	ä,	1.03	$\overline{\phantom{a}}$	1.76	1.54
Interest income	Subsidiaries
	Persistent Systems, Inc.		÷.		J.
	Other subsidiaries	0.67		0.67	L.
	Total	0.67	$\bullet$	0.67	٠	$\sim$
Investment in wholly owned subsidiary	Subsidiaries
(including Shares pending allotment)	Persistent Systems Germany GmbH CAPIOT Software Private Limited	J. 376.61	٠	376.61	474.00	552.72
	Total	376.61	$\blacksquare$	376.61	474.00	552.72
Payment of liability on behalf of	Subsidiaries
	Persistent Systems, Inc.			42.42		67.60
	Total	÷,	٠	42.42	$\bar{\phantom{a}}$	67.60
Employee stock compensation	Subsidiaries
	Persistent Systems, Inc.			34.48		179.82
	Total		÷,	34.48	ä,	179.82
Donation given	Entity over which a key management personnel has
	significant influence
	Persistent Foundation	35.00 35,00	18.80 18,80	140.00 140.00	56.40 56,40	79.21 79.21

December 31, 2020 December 31, 2019 Trade receivables Subsidiaries	March 31, 2020 216.89 128.11


57.75 Persistent Systems, Inc. 222.62
Other subsidiaries 112.97 31.19

Entity over which a key management personnel has significant influence
Deazzie Services Private Limited 1.50
170.72 255.31 Total	345.00
Trade payables Subsidiaries
Persistent Systems, Inc. 131.49 343.37	244.13
Other subsidiaries 56.49 62.77	205.86
Entity over which a key management personnel has
significant influence
Azure Associates, LLC 1.77
Total 187.98 407.91	449.99
Advances given Subsidiaries
Persistent Systems, Inc. 127 71 6 15	63.08
Other subsidiaries 1.89 25.90	16.94
Associate
Kisma e-Services Private Limited @ 0.81 0.81	0.81
Total 8.85 154.42	80.83
Subsidiaries Advances received inclusive of Advances
Persistent Systems, Inc. 507.93 from customers 358,67	400.81
Other subsidiaries	6.49
507.93 358.67	407.30
Unbilled Receivable Subsidiaries
Persistent Systems, Inc. 583.62 896.97	950.65
Other subsidiaries 77.26 44.25	42.28
941.22 660.88	992.93
nvestments Subsidiaries
Persistent Systems, Inc. 2.478.01 2.478.01	2.478.01
Other subsidiaries 1.857.74 1,481.13	1,481.13
Associate
Kisma e Services Private Limited @ 0.05 0.05	0.05
Total 4.335.80 3.959.19	3.959.19
Subsidiaries Loans given
CAPIOT Software Private Limited 35,67	٠
Associate
Klisma e-Services Private Limited @ 27.43 27.43	27.43
Total 63.10 27.43	27.43

Notes forming part of Condensed Interim Financial Statements

32. Contingent liabilities

December 19, 2016 for non-payment of service tax of 452.15 million under import of services on reverse charge basis, excluding interest and penalty, if applicable. The issue relates to the professional and technical services rendered by overseas subsidiaries on behalf of the Company to its overseas customers for the period 2011-12 to 2014-15.

Post representations made by the Company, the Learned Principal Commissioner of Service Tax, Pune, adjudicated the aforesaid show-cause notice and issued an order on May 29, 2017, reducing the demand to 173.78 million based on the period of limitation and as a result of that, the said demand now covers financial year 2014-15. The Company has filed an and Service Tax Appellate Tribunal (CESTAT) on September 23, 2017.

The Company, based on independent legal opinion obtained in respect of issues related to this matter, believes that the liability is not likely to arise and therefore, no provision is considered necessary in the condensed interim financial statements. If the appeal filed as mentioned above results in a demand, there will be no impact on the profitability as the Company will be eligible to claim credit/refund for the amount paid.

The GST department filed an appeal on October 11, 2017 with appellate authorities against the Order passed by Learned Principal Commissioner of Service Tax, Pune. Though the GST department acknowledged the ground of revenue neutrality, the said appeal mainly questions non-application of extended period of limitation. The Company filed reply to this appeal on December 18, 2017.

Considering the view of the Service Tax Authorities, based on legal advice and due prudence, the Company deposited, an amount of 647.36 million towards service tax in respect of the above matter, for the period from April 01, 2014 to June 30, 2017, under protest. This balance, post adjustment of service tax liability of 17.76 million for the month of June 2017 (i.e. net amount of 629.60 million) was considered as transitional credit under GST Regime and recorded accordingly as GST receivable. The disputed demand currently stands at 173.78 million towards which 165.58 million was paid under protest and forms part of the aforementioned GST receivable balance.

As on December 31, 2020, the pending litigations in respect of direct taxes amount to 201.49 million and in respect of indirect taxes amount to 25.94 million (excluding the show cause notice received from Commissioner of Service Tax on May 29, 2017 of 173.78 million under import of services on reverse charge basis as mentioned above). Based on the advice obtained and judgments in favour of the Company at the first appellate authority in the earlier years, management does not expect any outflow in respect of these litigations.

In respect of export incentives pertaining to previous periods amounting to 255.52 million, which have been refunded under protest with interest of 41.03 million, the Company filed an application before the relevant authorities. Further, the Company has also submitted a follow up communication, in this regard, with DGFT. Also, the Company had submitted representation with the industry association (NASSCOM) to ensure continued applicability of the said incentives to the eligible information technology companies. We understand from NASSCOM that they have also taken up the matter with concerned authorities. Additionally, accrued export incentives amounting to 113.49 million pertaining to earlier periods is is awaiting an opportunity of being heard on its application pending before DGFT and believes that the export incentives will be finally granted to the Company. Accordingly, no provision has been considered in the financial statements in this regard.

In respect of the show cause notice dated 30th September 2020, received by the Company on 9th October, 2020, on this matter from the Directorate of Revenue Intelligence (DRI), in which the authorities have raised certain additional matters with applicable penalties, the Company, based on initial consultations with subject matter specialists/experts believes that its position will likely be upheld on ultimate resolution and hence, no provision has been considered in the financial statements in this regard.

Persistent Systems Limited has given a performance guarantee up to \$ 10 million to HSBC Bank USA in respect of payment obligations under the Receivables Purchase agreement entered into by Persistent Systems Inc with HSBC Bank, USA (Corresponding period/ Previous year: \$10 million). Persistent Systems Limited. has also given performance guarantee up to \$ 5 million to Citibank USA (Corresponding period / Previous year: \$ 5 million) in respect of working capital facilities for Persistent Systems Inc. and \$ 0.17 million to Sun Life Assurance Company of Canada (Corresponding period / Previous year: \$ 0.17 million) for timely payment of rent instalments and damages, in respect of office leased to Persistent Systems Inc.

Notes forming part of Condensed Interim Financial Statements

The Company has deposits of 430 million with the financial institutions viz. Infrastructure Leasing & Financial Services Ltd. (IL&FS) and IL&FS Financial Services Ltd. (referred to as G on the balance sheet date. These were due for maturity from January 2019 to June 2019. In view of the uncertainty prevailing with respect to recovery of outstanding balances from IL&FS Group, Management of the Company has fully provided for these deposits along with interest accrued thereon till the date the deposits had become doubtful of recovery. The Management is hopeful of recovery though with a time lag. The Company continues to monitor developments in the matter and is committed to take steps including legal action that may be necessary to ensure full recovery of the said deposits. from October 29, 2020. Particulars In Million
Effective April 1, 2019, the Company has adopted Ind AS 116, Leases; and has recognized interest on lease liability of 26.78 million (corresponding period: 32.90 million/ previous year: 43.86 million) under finance cost.
The Company acquired 100% share capital of C Software Private Limited, a company based in India, with effect
The amount of consideration paid is 376.61 million. The fair value of assets acquired and liabilities assumed as on the date of acquisition are as follows:

outstanding balances from IL&FS Group, Management of the Company has fully provided for these deposits along with recovery though with a time lag. The Company continues to monitor developments in the matter and is committed to take Effective April 1, 2019, the Company has adopted Ind AS 116, Leases; and has recognized interest on lease liability of

Software Private Limited, a company based in India, with effect

Particulars	Amount in
	million
Consideration paid/ payable in cash	376.61
Less: cash and cash equivalent balances acquired	(20.00)
	356.61

1. The condensed interim financial statements are presented in million and decimal thereof except for per share information or as otherwise stated.
1. The condensed interim financial statements for the quarter and period ended December 31 2019, included in the interim unconsolidated financial statements as comparative financial information, were subjected to review by Statutory auditors.

Notes forming part of Condensed Interim Financial Statements

classification.

For Walker Chandiok & Co LLP For and on behalf of the Board of Directors of Chartered Accountants Persistent Systems Limited Firm Registration No.: 001076N/N500013

Membership No.: 106815 DIN: 00005721 DIN: 06475949

Place: Pune Place: New Jersey, USA

Bharat Shetty Dr. Anand Deshpande Sandeep Kalra Partner Chairman and Executive Director and Chief Managing Director Executive Officer

Date: January 28, 2021 Date: January 28, 2021

Pra Independent Director

DIN:

Place: Mumbai

Sunil Sapre Executive Director and Chief Financial Officer DIN: 06475949

Place: Mumbai Date: January 28, 2021 Date: January 28, 2021

Amit Atre Company Secretary Membership No. A20507

Place: Mumbai Place: Pune Date: January 28, 2021 Date: January 28, 2021

AI assistant

Persistent Systems Limited — Audit Report / Information 2021

60826_rns_2021-01-28_90d36ef4-ad4b-4bcc-ba84-611c19e82aca.pdf

Ref: Symbol: PERSISTENT

Sub: Audited Financial Statements for the quarter and period ended December 31, 2020

To the Members of Persistent Systems Limited

Report on the Audit of the Condensed Interim Consolidated Financial Statements

Basis for Opinion

on the Audit of the Condensed Interim Consolidated Financial Statements

Responsibilities of Management and Those Charged with Governance for the Condensed Interim Consolidated Financial Statements

Condensed Interim Consolidated Financial Statements

on the Audit of the Condensed Interim Consolidated Financial Statements

Other Matters

Persistent Systems Limited on the Audit of the Condensed Interim Consolidated Financial Statements

For Walker Chandiok & Co LLP

UDIN:21106815AAAAAL8052

Persistent Systems Limited on the Audit of the Condensed Interim Consolidated Financial Statements

Annexure 1

List of entities included

Firm Registration No.: 001076N/N500013

a) Securities premium

c) Share options outstanding reserve

d) Gain on bargain purchase

Notes forming part of Condensed Interim Consolidated Financial Statements

1. Nature of operations

Notes forming part of Condensed Interim Consolidated Financial Statements

4. Summary of significant accounting policies

(a) Use of estimates

Estimation of uncertainties relating to the global health pandemic, COVID-19:

Expected credit loss:

Impact on hedged and unhedged foreign currency exposure:

Carrying value of financial instruments:

Impact on revenue:

Critical accounting estimates

i. Revenue recognition

ii. Income taxes

Notes forming part of Condensed Interim Consolidated Financial Statements

iii. Intangible assets and contingent consideration in business combinations

iv. Estimates related to useful life of property, plant and equipment and intangible assets

v. Impairment of Goodwill

vi. Provisions

vii. Internally generated Intangible assets

viii. Leases

(b) Property, Plant and Equipment

(c) Intangible assets

Notes forming part of Condensed Interim Consolidated Financial Statements

Research and development cost

(d) Business combinations

(e) Goodwill/ Gain on bargain purchase

(f) Depreciation and amortization

Notes forming part of Condensed Interim Consolidated Financial Statements

(g) Financial instruments

i) Financial assets

Initial recognition and measurement

Subsequent measurement

recognized in other comprehensive income. - Financial assets at fair value through profit or loss (FVTPL)

are subsequently measured at fair value with all changes recognized in the statement of profit and loss. - Forward exchange contracts not intended for trading or speculation purposes, classified as derivative financial instruments

Derecognition

Notes forming part of Condensed Interim Consolidated Financial Statements

ii) Financial liabilities

Initial recognition and measurement

Subsequent measurement

Derecognition

(h) Impairment

i) Financial assets

ii) Non-financial assets

(i) Borrowing costs

Notes forming part of Condensed Interim Consolidated Financial Statements

(j) Leases

Where the Group is a lessee

Group as a lessor

(k) Revenue recognition

(i) Income from sale of software services and products

Notes forming part of Condensed Interim Consolidated Financial Statements

(ii) Interest

(iii) Dividend

(l) Government grants

(m) Foreign currency translation

Foreign currency transactions and balances

Initial recognition

Persistent Systems Limited Audit Report / Information 2021