Persistent Systems Limited — Audit Report / Information 2022

Apr 27, 2022

NSE & BSE / 2022-23 / 08

April 27, 2022

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: Outcome of the Board Meeting held on April 26, 2022, and continued on April 27, 2022

Pursuant to our intimation dated April 4, 2022, we wish to inform you that, the Board of Directors, at its meeting held on April 26, 2022, and continued on April 27, 2022, has inter-alia taken the following decisions:

A. Approval of the Audited Financial Results for the quarter and year ended March 31, 2022

Pursuant to Regulation 33 and all other applicable regulations, if any of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Audited Financial Results for the quarter and year ended March 31, 2022, have been approved. Accordingly, we enclose the following documents:

• 1. Auditors' Report dated April 27, 2022, on the Consolidated Financial Results of the Company for the quarter and year ended March 31, 2022.
• 1. Consolidated Financial Results of the Company for the quarter and year ended March 31, 2022;
• 1. Auditors' Report dated April 27, 2022, on the Unconsolidated Financial Results of the Company for the quarter and year ended March 31, 2022.
• 1. Unconsolidated Financial Results of the Company for the quarter and year ended March 31, 2022.

Pursuant to Regulation 33(3)(d) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, a declaration that the Statutory Auditors of the Company have issued an Audit Report with an unmodified opinion on the Audited Financial Results of the Company (Standalone and Consolidated) for the quarter and year ended March 31, 2021, is attached for your ready reference.

B. Final Dividend for the Financial Year 2020-21

The Board has recommended a Final Dividend of INR 11 (Eleven) per Equity Share of INR 10 each for Financial Year 2021-22. This Final Dividend is subject to the approval of Members at the ensuing 32 nd Annual General Meeting which will be held on or before September 30, 2022. The Book Closure for the purpose of payment of the Final Dividend for the Financial Year 2021-22 will be determined later.

Please note that the discussion on the above agenda items was concluded on April 27, 2022, at 1715 Hrs. (IST)

Please acknowledge the receipt.

Thanking you, Yours Sincerely, For Persistent Systems Limited

AMIT MURARI ATRE Digitally signed by AMIT MURARI ATRE Date: 2022.04.27 17:23:13 +05'30'

Amit Atre Company Secretary ICSI Membership No.: A20507

Encl: As above

Walker Chandiok & Co LLP

3rd floor, Unit No. 309 to 312, West Wing, Nyati Unitree Nagar Road, Yerwada, Pune - 411006 Maharashtra, India T +91 20 6744 8888 F +91 20 6744 8899

Consolidated Annual Financial Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended)

To the Board of Directors of Persistent Systems Limited

Opinion

• 1. We have audited the accompanying consolidated annual Persistent Systems Limited and its subsidiaries (the Holding Company and its and its associate for the quarter and year ended 31 March 2022, attached herewith, being submitted by the Holding Company pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended) .
• 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 other auditors on separate audited financial statements of the subsidiaries, associate, as referred to in paragraph 12 below, the Statement:
• (i) includes the annual financial results of the entities listed in Annexure 1;
• (ii) presents financial results in accordance with the requirements of Regulation 33 of the Listing Regulations,; and
• (iii) gives a true and fair view in conformity with the applicable Indian Accounting Standards prescribed under section 133 of the read with the Companies (Indian Accounting Standards) Rules, 2015, and other accounting principles generally accepted in India, of the consolidated net profit after tax and other comprehensive income and other financial information of the Group and its associate for the quarter and year ended 31 March 2022.

Basis for Opinion

1. 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 Audit of the Statement section of our report. We are independent of the Group and its associate, in the together with the ethical requirements that are relevant to our audit of the financial results 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 obtained by us together with the audit evidence obtained by the other auditors in terms of their reports referred to in paragraph 12 of the Other Matter section below, is sufficient and appropriate to provide a basis for our opinion.

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Offices in Bengaluru, Chandigarh, Chennai, Gurugram, Hyderabad, Kochi, Kolkata, Mumbai, New Delhi, Noida and Pune

Chartered Accountants

Persistent Systems Limited Consolidated Annual Financial Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended)

Responsibilities of Management and Those Charged with Governance for the Statement

• 1. has been approved by the Holding Company's Board of Directors, has been prepared on the basis of the consolidated annual financial statements. and presentation of the Statement that gives a true and fair view of the consolidated net profit and other comprehensive income, and other financial information of the Group including its associate in accordance with the Ind AS prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015 and other accounting principles generally accepted in India and in compliance with Regulation 33 of the Listing Regulations. ensuring accuracy of records including financial information considered necessary for the preparation of the Statement. Further, in terms of the provisions of the Act, the respective Board of Directors of the companies included in the Group and its associate, are responsible for maintenance of adequate accounting records in accordance with the provisions of the Act, for safeguarding of the assets of the Group, and its associate, 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 financial results, that give a true and fair view and are free from material misstatement, whether due to fraud or error. These financial results have been used for the purpose of preparation of the Statement by the Directors of the Holding Company, as aforesaid.
• 1. In preparing the Statement, 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 , to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting, unless the respective Board of Directors either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.
• 1. The respective Board of Directors of the companies included in the Group and of its associate, are responsible for overseeing the financial reporting process of the companies included in the Group and of its associate.
• 1. Our objectives are to obtain reasonable assurance about whether the Statement as a whole is free from opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with Standards on Auditing specified under section 143(10) of the Act 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 this Statement.
• 1. As part of an audit in accordance with the Standards on Auditing specified under section 143(10) of the Act, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the Statement, 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.

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Chartered Accountants

Persistent Systems Limited Consolidated Annual Financial Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended)

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3) (i) of the Act, we are also responsible for expressing our opinion on whether the Holding Company has adequate internal financial controls system with reference to financial statements in place 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 the management.
• ing concern basis of accounting and, 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 Statement or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the Statement, including the disclosures, and whether the Statement represents the underlying transactions and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial statements of the entities within the Group, and its associate, to express an opinion on the Statement. We are responsible for the direction, supervision and performance of the audit of financial information of such entities included in the Statement, of which we are the independent auditors. For the other entities included in the Statement, 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.
• 1. We communicate with those charged with governance of the Holding Company and such other entities included in the Statement, of which we are the independent auditors, 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.
• 1. We also performed procedures in accordance with SEBI Circular CIR/CFD/CMD1/44/2019 dated 29 March 2019, issued by the SEBI under Regulation 33 (8) of the Listing Regulations, to the extent applicable.

Other Matters

We did not audit the annual financial statements of twenty two subsidiaries included in the Statement,whose 5,579.46 million as at 31 March 2022, total revenues of 5,782.68 million, total net profit 167.06 million, total comprehensive income of 119.92 milion, 312.85 million for the year ended on that date, as considered in the Statement. These financial statements have been audited by other auditors whose audit reports have been furnished to us by the management, and our opinion in so far as it relates to the amounts and disclosures included in respect of these subsidiaries is based solely on the audit reports of such other auditors, and the procedures performed by us as stated in paragraph 3 above.

Our opinion is not modified in respect of this matter with respect to our reliance on the work done by and the reports of the other auditors.

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Chartered Accountants

Offices in Bengaluru, Chandigarh, Chennai, Gurugram, Hyderabad, Kochi, Kolkata, Mumbai, New Delhi, Noida and Pune

Persistent Systems Limited Consolidated Annual Financial Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended)

1. The Statement includes the consolidated financial results for the quarter ended 31 March 2022 being the balancing figures between the audited consolidated figures in respect of the full financial year and the published audited year-to-date consolidated figures up to the third quarter of the current financial year, which were subject to audit by us.

For Walker Chandiok & Co LLP

Chartered Accountants Firm Registration No:001076N/N500013

Shashi Tadwalkar Partner Membership No:101797

UDIN:22101797AHXLJT3530

Place: Pune Date: 27 April 2022

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Chartered Accountants

Annexure 1

List of entities included in the Statement

Sr No	Name of Entity	Nature of 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	Aepona Group Limited (AGL)	Wholly owned subsidiary of PSI
9	Aepona Limited	Wholly owned subsidiary of AGL
10	Youperience GmbH (YGmbH)	Wholly owned subsidiary of PSGG
11	Youperience Limited	Wholly owned subsidiary of YGmbH
12	Persistent Systems Lanka (Private) Limited	Wholly owned subsidiary of AGL
13	Persistent Systems Mexico, S.A. de C.V.	Wholly owned subsidiary of PSI
14	Persistent Systems Israel Ltd	Wholly owned subsidiary of PSI
15	PARX Werk AG	Wholly owned subsidiary of PSGG
16	PARX Consulting GmbH	Wholly owned subsidiary of PARX Werk AG
17	Capiot Software Private Limited	Wholly owned subsidiary of PSL
18	Capiot Software Inc. (Capiot US)	Wholly owned subsidiary of PSI
19	Capiot Software Pty Limited	Wholly owned subsidiary of Capiot US
20	Capiot Software Pte Limited	Wholly owned subsidiary of Capiot US
21	Persistent Systems S.R.L.	Wholly owned subsidiary of PSI
22	Software Corporation International (Acquired w.e.f. 5 October 2021)	Wholly owned subsidiary of PSI
23	SCI Fusion360 LLC (Acquired w.e.f. 5 October 2021)	Wholly owned subsidiary of PSI
24	Data Glove IT Solutions Limitada (Acquired w.e.f. March 1, 2022)	Wholly owned subsidiary of PSGG
25	Klisma e-Services Private Limited (Dissolved w.e.f. 10 August 2021)	Associate company of PSL

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Offices in Bengaluru, Chandigarh, Chennai, Gurugram, Hyderabad, Kochi, Kolkata, Mumbai, New Delhi, Noida and Pune

Chartered Accountants

$\operatorname{Persistent}$ Systems Limited

Registered Office : Bhageerath, 402, Senapati Bapat Road, Pune 411016, India
Ph. No. +91(20)67030000; Fax +91(20)67030009; Email : info@persistent.com, 'www.persistent.com'. CIN L72300PN1990PLC056696

Audited consolidated financial results of Persistent Systems Limited for the quarter and year ended March 31, 2022

		in ₹ Million
Sr.	Particulars			Quarter ended		Year ended
No.			March 31, 2022	December 31, 2021	March 31, 2021	March 31, 2022	March 31, 2021
	Income
$\mathbf{1}$	Revenue from operations (net)		16,378.54	14,917.17	11,133.58	57,107.46	41,878.88
$\overline{2}$	Other income		420.73	306.64	400.36	1,439.55	1,077.72
3	Total income	$(1+2)$	16,799.27	15,223.81	11,533.94	58,547.01	42,956.60
4	Expenses
	- Employee benefits expense		10,073.67	9,103.37	6,853.90	34,593.10	25,157.99
	- Cost of professionals		2,139.15	2,031.24	1,543.13	7,974.18	5,563.68
	- Finance costs		49.29	25.50	15.83	118.35	57.94
	- Depreciation and amortization expense		511.35	427.85	419.05	1,660.12	1,755.50
	- Other expenses Total Expenses		1,353.98 14,127.44	1,271.73 12,859.69	853.25 9,685.16	4,958.47 49,304.22	4,327.06 36,862.17
5	Profit before exceptional items and tax	$(3-4)$	2,671.83	2,364.12	1,848.78	9,242.79	6,094.43
6	Exceptional items
7	Profit before tax	$(5-6)$	2,671.83	2,364.12	1.848.78	9,242.79	6.094.43
8	Tax expense
	- Current tax		601.27	635.59	495.67	2,322.85	1,774.01
	- Tax charge in respect of earlier years /		40.87	19.31	3.68	42.57	10.58
	periods
	- Deferred tax charge / (credit)		19.79	(54.73)	(28.16)	(26.49)	(196.93)
	Total tax expense		661.93	600.17	471.19	2,338.93	1,587.66
9	Profit for the period / year	$(7-8)$	2,009.90	1,763.95	1,377.59	6,903.86	4,506.77
10	Other comprehensive income
	A. Items that will not be reclassified to profit
	and loss
	- Remeasurements of the defined benefit		(93.39)	9.61	24.52	(183.87)	10.25
	liabilities / assets (net of tax)
			(93.39)	9.61	24.52	(183.87)	10.25
	B. Items that may be reclassified to profit and loss
	- Effective portion of cash flow hedge (net of		(64.57)	39.91	(53.45)	(97.65)	383.54
	tax)
	- Exchange differences in translating the		(194.88)	219.11	120.35	138.96	(20.07)
	financial statements of foreign operations
			(259.45)	259.02	66.90	41.31	363.47
	Total other comprehensive income for the	$(A+B)$	(352.84)	268.63	91.42	(142.56)	373.72
11	period / year Total comprehensive income for the period /	$(9+10)$	1,657.06	2.032.58	1,469.01	6,761.30	4,880.49
	year (Comprising Profit/(Loss) and Other
	Comprehensive Income for the period / year)
12	Paid-up equity share capital		764.25	764.25	764.25	764.25	764.25
	(Face value of share ₹10 each)
13	Other equity excluding revaluation reserves						27,192.41
14	Earnings per equity share in ₹ (Nominal value
	of share ₹10 each)
	- Basic		26.30	23.08	18.03	90.34	58.97
15	- Diluted Dividend per share (in $\bar{x}$ ) (Nominal value per		26.30	23.08	18.03	90.34	58.97
	share ₹ 10)
	Interim dividend			20.00		20.00	14.00
	Final dividend		11.00		6.00	11.00	6.00
	Total dividend		11.00	20.00	6.00	31.00	20.00

Audited consolidated statement of assets and liabilities

		in ₹ Million
Particulars	As at	As at
	March 31,	March 31,
	2022	2021
ASSETS
Non-current assets
Property, plant and equipment	2,917.67	2,401.40
Capital work-in-progress	1,071.20	121.81
Right- of- use assets	1,358.21	852.58
Goodwill	2,790.22	85.94
Other intangible assets	8,269.63	1,229.50
Financial assets
- Investments	3,877.72	3,621.27
- Loans	3,522.00
-Other non-current financial assets	340.74	160.52
Deferred tax assets (net)	1,122.72	1,037.57
Other non-current assets	531.61	441.52
Total non-current assets	25,801.72	9,952.11
Current assets
Financial assets
- Investments	4,346.91	6,374.95
- Trade receivables (net)	9,484.29	5,708.97
- Cash and cash equivalents	2,977.99	2,419.30
	6,166.59	7,389.70
- Bank balances other than cash and cash equivalents - Loans	16.10	21.79
- Other current financial assets	3,214.90	2,516.70
Current tax assets (net)	179.57	188.00
Other current assets	1,952.90	2,083.72
Total current assets	28,339.25	26,703.13
TOTAL ASSETS	54,140.97	36,655.24
EQUITY AND LIABILITIES
Equity
Equity share capital	764.25	764.25
Other equity	32,917.95	27,192.41
Total Equity	33,682.20	27,956.66
Liabilities
Non-current liabilities
Financial liabilities		716.17
- Lease liabilities	1,114.29	44.27
- Borrowings - Other financial liabilities	2,800.79 2,088.60
Provisions Total Non- current liabilities	245.54 6,249.22	240.94 1,001.38
Current liabilities
Financial liabilities
- Lease liabilities	342.58	222.00
- Trade payables
- Dues of micro and small enterprises	10.30	30.20
- Dues of creditors other than micro and small enterprises	4,288.41	2,703.24
-Borrowings - Other financial liabilities	1,524.56 2,173.60	1.96 388.21
Other current liabilities	1,571.72	1,514.95
Provisions	3,949.66	2,477.79
	348.72	358.85
Current tax liabilities (net) Total current liabilities	14,209.55	7,697.20
TOTAL EQUITY AND LIABILITIES	54,140.97	36,655.24

Audited unconsolidated financial information

					in $\bar{\tau}$ Million
Particulars	Ouarter ended			Year ended
	March 31, 2022	December 31, 2021 March 31, 2021 March 31, 2022 March 31, 2021
Revenue from operations (net)	10.350.10	9.286.51	6.846.58	35.754.80	24.796.08
Profit before tax	2,590.34	2.241.50	1.900.96	9.120.61	6.680.20
Profit after tax	1,944.85	.728.91	.400.72	6,858.66	5,050.86

Segment wise Revenue, Results and Capital Employed

The operating segments are:

a. Banking, Financial Services and Insurance (BFSI)

b. Healthcare & Life Sciences

c. Technology Companies and Emerging Verticals

						in ₹ Million
Sr.	Particulars		Quarter ended		Year ended
No.		March 31, 2022	December 31, 2021 March 31, 2021		March 31, 2022	March 31, 2021
1	Segment revenue
	- BFSI	5,321.19	4,808.48	3,158.04	18,063.65	12,857.05
	- Healthcare & Life Sciences	3,371.70	3,086.34	2,054.64	11,842.75	8,104.24
	- Technology Companies and	7.685.65	7,022.35	5,920.90	27,201.06	20.917.59
	Emerging Verticals
	Total	16,378.54	14,917.17	11,133.58	57,107.46	41,878.88
2 3	Less: Inter segment revenue Net sales/income from operations					41.878.88
$\overline{4}$	Segment results i.e. profit/ (loss) before tax,	16,378.54	14,917.17	11,133.58	57,107.46
	interest and depreciation and amortization
	- BFSI	1,492.16	1,778.95	1,360.54	6,184.33	4,818.38
	- Healthcare & Life Sciences	1,692.18	1,569.97	1,108.67	6,063.74	3,982.47
	- Technology Companies and	2,873.73	2,446.53	1,863.68	9,269.10	6,449.40
	Total	6,058.07	5,795.45	4,332.89	21,517.17	15,250.25
5	Less:
	- Finance costs	49.29	25.50	15.83	118.35	57.94
	- Other un-allocable expenses	3,757.68	3,712.47	2,868.64	13,595.58	10,175.60
6	Un-allocable income	420.73	306.64	400.36	1,439.55	1,077.72
7	Profit before tax	2,671.83	2,364.12	1,848.78	9,242.79	6,094.43
8	Segment assets					in ₹ Million
					As on March 31, 2022	March 31, 2021
	$-$ BESI				2,570.89	1,950.45
	- Healthcare & Life Sciences				2,274.57	1,525.69
	- Technology Companies and Emerging Verticals Total allocable segment assets				7,769.14 12,614.60	4,405.60 7,881.74
	Unallocable assets				41,526.37	28,773.50
	Total assets				54,140.97	36,655.24

Note for segment wise information:

Operating segments are components of an enterprise for which discrete financial information is available that is evaluated regularly by the chief Sperating decision makers, in deciding how to allocate resources and assessing performance. The Group's chief operating decision makers are the
Chief Executive Officer and Chairman & Managing Director.

Segment wise capital employed

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

Persistent Systems Limited

CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2022

March 31, 2022 March 31, 2021 In ₹ Million In ₹ Million Cash flow from operating activities Profit before tax 9,242 79 6,094.43 Adjustments for: Interest income (600.22) (558, 70) Finance costs 118.35 57 94 1.660.12 1.755.50 Depreciation and amortization expense Unrealised exchange loss/ (gain) (net) (25.92) 139.55 Change in foreign currency translation reserve 305.64 (42.32) Exchange loss / (gain) on derivative contracts 79.38 (169.80) Exchange loss on translation of foreign currency cash and cash equivalents 1.70 11.50 Bad debts 65.27 90.30 Change in provision for expected credit loss (net) (105.06) 31 32 Employee stock compensation expenses 290.44 950.23 18.53 Loss / Impairment of non current investments 148.40 Remeasurements of the defined benefit liabilities / asset (before tax effects) (183.87) 10.25 23.96 Impairment of loan Excess provision in respect of earlier years/period (written back) (66.00) (41.79) Profit on sale/ fair valuation of financial assets designated as FVTPL (354.30) (346.74) Profit on sale of property, plant and equipment (net) (12.45) (1.34) 11,224.06 7,363.03 Operating profit before working capital changes Movements in working capital : 5.69 Decrease / (Increase) in non-current and current loans (40.03) (147.89) Increase in other non current assets (76.81) (104.23) Increase in other current financial assets (869.22) 146.71 58.26 Decrease / (Increase) in other current assets 58.49 Decrease / (Increase) in trade receivables (3,508.56) 757.56 Increase in trade payables, current liabilities and non current liabilities 2,489.72 1.476 47 924 95 Increase in provisions 10,816.98 8,941.22 Operating profit after working capital changes Direct taxes paid (net of refunds) (1,581.97) (2,367.12) 7,359.25 Net cash generated from operating activities (A) 8,449.86 Cash flows from investing activities (1, 281.04) Payment towards capital expenditure (including intangible assets, capital advances and capital creditors) (3,853.97) Proceeds from sale of property, plant and equipment 46.02 30.02 Acquisition of step-down subsidiary including cash and cash equivalents: ₹61.07 (Previous (6, 154.02) (448.47) year ₹ 30 90 million) Purchase of bonds (712.18) (711.90) 499.95 350.53 Proceeds from sale/ maturity of bonds (24, 591.91) Investments in mutual funds (33, 456, 80) Proceeds from sale / maturity of mutual funds 35,762.24 25,068.92 Maturity / (Investments) of bank deposits 1.121.92 (4.198.89) Investments in deposits with financial institutions (100.00) ٠ Investment in common / preferred stocks (123.61) Loan to ESOP Trust (3,522.00) 718.74 366 29 Interest received Net cash used in investing activities (B) (9.773.43) (5,416,73) Cash flows from financing activities Repayment of long term borrowings (1.84) (4.54) Net proceeds from long term borrowings 4.280.99 (350.83) (319.11) Payment of lease liabilities Specific project related grant received 9.00 Interest paid (118.38) (58.01) (1,069.95) Dividends paid (1,987.05) Net cash generated from /(used in) financing activities (C) 1,822 89 (1,442.61)		For the year ended

Persistent Systems Limited

CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2022

	For the year ended
	March 31, 2022	March 31, 2021
	In ₹ Million	In ₹ Million
Net increase in cash and cash equivalents $(A + B + C)$	499.32	499 91
Cash and cash equivalents at the beginning of the period/year	2.419.30	1.899.99
Cash and cash equivalents acquired on acquisition	61.07	30.90
Effect of exchange difference on translation of foreign	(1.70)	(11.50)
currency cash and cash equivalents
Cash and cash equivalents at the end of the period / year	2,977.99	2,419.30
Components of cash and cash equivalents
Cash on hand	0.24	0.41
Balances with banks
On current accounts #	2.337.96	1.583.20
On saving accounts	1.64	1 3 3
On exchange earner's foreign currency accounts	259.20	208.57
On deposit accounts with original maturity less than three months		62579
On Escrow accounts**	378.95
Cash and cash equivalents	2.977.99	2,419.30

Out of the cash and cash equivalent balance as at March 31, 2022, the Group can utilise ₹ 35.75 Million (Previous year: ₹ 154.39 Million) only towards certain
predefined activities specified in the agreement.

** The balance maintained in Escrow account will be released to selling shareholders on meeting specific conditions.

Notes:

• 1 The audited condensed interim consolidated financial statements for the quarter and year ended March 31, 2022, have been taken on record by the Board of Directors at its meeting held on April 27, 2022 as recommended by the Audit Committee at its meeting held on April 26, 2022. The statutory auditors have expressed an unqualified audit opinion. The information presented above is extracted from the audited condensed interim consolidated financial statements.
• 2 The above consolidated financial results have been prepared from the condensed interim consolidated financial statements, which are prepared in accordance with Indian Accounting Standards ("Ind AS"), the provisions of the Companies Act, 2013 ("the Companies Act"), as applicable and guidelines issued by the Securities and Exchange Board of India ("SEBI"). The Ind AS are prescribed under Section 133 of the Companies Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and amendments issued thereafter. All amounts included in the consolidated financial results (including notes) are reported in millions of Indian rupees ( in ₹ millions) except share and per share data, unless otherwise stated.
• 3 The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the company towards Provident Fund and Gratuity. The Ministry of Labour and Employment has released draft rules for the Code on Social Security, 2020 on November 13, 2020, and has invited suggestions from stakeholders which are under active consideration by the Ministry. The Group will assess the impact and its evaluation once the subject rules are notified and will give appropriate impact in its financial statements in the period in which the Code becomes effective and the related rules to determine the financial impact are published.
• 4 The Board of Directors at its meeting held in January 2022 approved the payment of an Interim Dividend of ₹20 per Equity Share of ₹10 each for FY 2021-22. Accordingly, in February 2022, ₹1,528.50 million were paid towards the same.
• 5 The Board of Directors at its meeting held on April 27, 2022, recommended a Final Dividend of ₹11 per Equity Share of ₹10 each for FY 2021-22. This Final Dividend is subject to the approval of the Members at the ensuing 32nd Annual General Meeting which will be held on or before September 30, 2022
• 6 On March 1, 2022, the Group along with it's subsidiary completed the business acquisition of Data Glove IT Solutions Private Limited, and its subsidiaries and affiliate entities in India, USA, Australia, UK, Canada, Singapore and Costa Rica.

7 The investors are requested to visit the following website of the Company and Stock Exchanges for further details:

*Company's website: https://www.persistent.com/investors · BSE Ltd: www.bseindia.com · National Stock Exchange of India Ltd.: www.nseindia.com

By order of Board of Directors of Persistent Systems Limited Anand Deshpande

Pune Date: April 27, 2022 Dr. Anand Deshpande Chairman and Managing Director

"For risks and uncertainties relating to forward-looking statements, please visit our website :- www.persistent.com

Walker Chandiok & Co LLP

3rd floor, Unit No. 309 to 312, West Wing, Nyati Unitree Nagar Road, Yerwada, Pune - 411006 Maharashtra, India T +91 20 6744 8888 F +91 20 6744 8899

Standalone Annual Financial Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended)

To the Board of Directors of Persistent Systems Limited

Opinion

• 1. We have audited the accompanying standalone annual Persistent Systems Limited for the quarter and year ended 31 March 2022, attached herewith, being submitted by the Company pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended) .
• 1. In our opinion and to the best of our information and according to the explanations given to us, the Statement:
• (i) presents financial results in accordance with the requirements of Regulation 33 of the Listing Regulations, and
• (ii) gives a true and fair view in conformity with the specified under section 133 of the Companies Act read with the Companies (Indian Accounting Standards) Rules, 2015, and other accounting principles generally accepted in India, of the standalone net profit after tax and other comprehensive income and other financial information of the Company for the quarter and year ended 31 March 2022.

Basis for Opinion

1. 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 Responsibilities for the Audit of the Statement section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Char the financial results 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 obtained by us, is sufficient and appropriate to provide a basis for our opinion.

Page 1 of 3

Offices in Bengaluru, Chandigarh, Chennai, Gurugram, Hyderabad, Kochi, Kolkata, Mumbai, New Delhi, Noida and Pune

Chartered Accountants

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

Responsibilities of Management and Those Charged with Governance for the Statement

• 1. This Statement has been prepared on the basis of the standalone annual financial statements and has been approved by the Company's Board of Directors is responsible for the preparation and presentation of the Statement that gives a true and fair view of the net profit and other comprehensive income and other financial information of the Company in accordance with the Ind AS specified under section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules, 2015 and other accounting principles generally accepted in India, and in compliance with Regulation 33 of the Listing Regulations. 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 Statement that gives a true and fair view and is free from material misstatement, whether due to fraud or error.
• 1. In preparing the Statement, the Board of Directors is 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 Company or to cease operations, or has no realistic alternative but to do so.
• 1. The Board of Directors is also
• 1. Our objectives are to obtain reasonable assurance about whether the Statement as a whole is free from opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with Standards on Auditing, specified under section 143(10) of the Act, 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 this Statement.
• 1. As part of an audit in accordance with the Standards on Auditing, specified under section 143(10) of the Act, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the Statement, 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. Under section 143(3) (i) of the Act, we are also responsible for expressing our opinion on whether the Company has in place an adequate internal financial controls with reference to financial statements 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 the management.

Page 2 of 3

Chartered Accountants

Persistent Systems Limited Standalone Annual Financial Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended)

• Conclude on the appropriateness of the management s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related going concern. If we conclude that a material uncertainty exists, we are required to draw attention Statement or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the Statement, including the disclosures, and whether the Statement represents the underlying transactions and events in a manner that achieves fair presentation. Obtain sufficient appropriate audit evidence regarding the financial information of the Company to express an opinion on the Statement.
• 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 Matter

1. The Statement includes the financial results for the quarter ended 31 March 2022, being the balancing figures between the audited figures in respect of the full financial year and the published audited year-to-date figures up to the third quarter of the current financial year, which were subject to audit by us.

For Walker Chandiok & Co LLP Chartered Accountants Firm Registration No:001076N/N500013

Shashi Tadwalkar Partner Membership No:101797

UDIN:22101797AHXKUS8065

Place: Pune Date: 27 April 2022

Page 3 of 3

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

Offices in Bengaluru, Chandigarh, Chennai, Gurugram, Hyderabad, Kochi, Kolkata, Mumbai, New Delhi, Noida and Pune

Chartered Accountants

Persistent Systems Limited

Registered Office : Bhageerath, 402, Senapati Bapat Road, Pune 411016, India
Ph. No. +91(20)67030000; Fax +91(20)67030009; Email : info@persistent.com, 'www.persistent.com'. CIN L72300PN1990PLC056696

Audited unconsolidated financial results of Persistent Systems Limited for the quarter and year ended March 31, 2022

Sr. No.	Particulars			Quarter ended			(In ₹ Million) Year ended
			March 31, 2022	December 31, 2021	March 31, 2021	March 31, 2022	March 31, 2021
	Income
1	Revenue from operations (net)		10,350.10	9,286.51	6,846.58	35,754.80	24,796.08
$\overline{2}$	Other income		390.91	307.33	349.75	1,324.57	1,176.16
3	Total income	$(1+2)$	10,741.01	9,593.84	7.196.33	37,079.37	25,972.24
$\overline{4}$	Expenses
							14,093.21
	- Employee benefits expense		6,561.34 283.33	5,770.02 368.66	4,071.22 464.79	21,882.72 1,461.91	1,775.07
	- Cost of professionals - Finance costs		17.24	15.85	11.21	68.78	38.21
	- Depreciation and amortization expense		258.34	218.73	155.52	837.57	566.79
	- Other expenses		1,030.42	979.08	592.63	3,707.78	2,818.76
	Total expenses		8,150.67	7,352.34	5,295.37	27,958.76	19,292.04
5	Profit before exceptional items and tax	$(3-4)$	2,590.34	2,241.50	1,900.96	9,120.61	6,680.20
6	Exceptional items
7	Profit before tax	$(5-6)$	2,590.34	2,241.50	1,900.96	9,120.61	6,680.20
8	Tax expense
	- Current tax		595.80	584.76	468.18	2,236.61	1,684.00
	- Tax charge in respect of earlier years		13.48	$\overline{a}$		13.48	2.74
	- Deferred tax charge / (credit)		36.21	(72.17)	32.06	11.86	(57.40)
	Total tax expense		645.49	512.59	500.24	2,261.95	1,629.34
9	Profit for the period / year	$(7-8)$	1,944.85	1,728.91	1,400.72	6,858.66	5,050.86
10	Other comprehensive income
	A. Items that will not be reclassified to profit and loss
	Remeasurements of the defined benefit asset / liabilities		(98.21)	5.16	24.56	(190.82)	15.93
	(net of tax)
			(98.21)	5.16	24.56	(190.82)	15.93
	B. Items that may be reclassified to profit and loss
	Effective portion of cash flow hedge (net of tax)		(64.57)	39.91	(53.44)	(97.66)	383.55
			(64.57)	39.91	(53.44)	(97.66)	383.55
	Total other comprehensive income for the period / year	$(A+B)$	(162.78)	45.07	(28.88)	(288.48)	399.48
11	Total comprehensive income for the period / year	$(9+10)$	1,782.07	1,773.98	1,371.84	6,570.18	5,450.34
	(Comprising Profit/ (Loss) and Other Comprehensive
	Income for the period/year)
12	Paid-up equity share capital		764.25	764.25	764.25	764.25	764.25
	(Face value of share ₹ 10 each)
13	Other equity excluding revaluation reserves						26,890.99
14	Earnings per equity share in $\bar{\tau}$ (Nominal value of share $\bar{\tau}$ 10
	each)
	- Basic		25.45	22.62	18.33	89.74	66.09
	- Diluted		25.45	22.62	18.33	89.74	66.09
15	Dividend per share (in ₹) (Nominal value of share ₹ 10
	each)
	Interim dividend			20.00		20.00	14.00
	Final dividend		11.00		6.00	11.00	6.00
	Total dividend		11.00	20.00	6.00	31.00	20.00

Audited unconsolidated statement of assets and liabilities

(In ₹ Million)
Particulars	As on March 31, 2022	As on March 31, 2021
ASSETS
Non-current assets
Property, plant and equipment	2,733.61	2,270.24
Capital work-in-progress	1,071.02	112.33
Right of use assets	671.63	314.62
Other intangible assets	780.73	171.65
Financial assets
- Investments	8,734.81	7,779.54
- Loans	3,943.68
-Other non-current financial assets	226.68	77.99
Deferred tax assets (net)	266.72	245.74
Other non-current assets	557.98	419.73
Total non-current assets	18,986.86	11,391.84
Current assets
Financial assets
- Investments	4,346.91	6,374.95
- Trade receivables (net)	4,426.84	2,966.26
- Cash and cash equivalents	563.67	862.72
- Bank balances other than cash and cash equivalents	6,038.02	7,387.00
- Loans
- Other current financial assets	3,708.73	2,113.12
Other current assets	1,371.26	1,656.93
Total current assets	20,455.43	21,360.98
TOTAL ASSETS	39,442.29	32,752.82
EQUITY AND LIABILITIES
Equity
Equity share capital	764.25	764.25
Other equity	32,424.60	26,890.99
Total Equity	33,188.85	27,655.24
Liabilities
Non-current liabilities
Financial liabilities
- Borrowings	3.70	5.54
- Lease liabilities	611.75	304.72
Provisions	245.54	240.94
Total Non-current liabilities	860.99	551.20
Current liabilities
Financial liabilities
- Borrowings	1.93	1.96
- Lease liabilities	146.51	73.82
- Trade payables
-Dues of small enterprises and micro enterprises	10.30	30.20
-Dues of creditors other than small enterprises and micro enterprises	844.68	908.20
- Other financial liabilities	366.88	395.46
Other current liabilities	1,509.04	1,679.01
Provisions Current tax liabilities (net)	2,269.73	1,145.59
Total current liabilities	243.38 5,392.45	312.14 4,546.38
TOTAL EQUITY AND LIABILITIES	39,442.29	32,752.82

Audited unconsolidated cashflow statement

	$(In ₹$ Million)

		Year ended	$\overline{a}$
		March 31, 2022	March 31, 2021
Cash flows from operating activities
Profit before tax		9,120.61	6,680.20
Adjustments for:
Interest income		(593.58)	(548.82)
Finance cost		68.78	38.21
Dividend income		(53.16)	(131.45)
Depreciation and amortization expense		837.57	566.79
Unrealised exchange loss (net)		26.38	151.02
Exchange loss / (gain) on derivative contracts		79.38	(169.80)
Exchange loss on translation of foreign currency cash and cash equivalents		0.29	23.15
Bad debts		12.12	46.96
Change in provision for expected credit loss (net)		(29.97)	(20.20)
Employee stock compensation expenses		739.52	236.33
Remeasurements of the defined benefit liabilities / asset (before tax effects)		(190.82)	15.93
Excess provision in respect of earlier years written back		(15.53)
Profit on sale/ fair valuation of financial assets designated as FVTPL		(338.78)	(344.43)
(Profit) / loss on sale of Property, Plant and Equipment (net)		(12.31)	8.10
Operating profit before working capital changes		9,650.50	6,551.99
Movements in working capital:
Increase in other non current assets		(40.48)	(78.73)
(Increase) / Decrease in other non current financial assets		(70.68)	37.02
(Increase) / Decrease in other current financial assets		(1,594.52)	363.88
Decrease/ (Increase) in other current assets		285.67	(171.56)
Increase in trade receivables		(1,470.96)	(312.65)
Increase in trade payables, current liabilities and non current liabilities		273.76	1,059.46
Increase in provisions		1,144.27	613.36
Operating profit after working capital changes		8,177.56	8,062.77
Direct taxes paid (net of refunds)		(2,318.85)	(1,494.81)
Net cash generated from operating activities	(A)	5,858.71	6,567.96
Cash flows from investing activities Payment towards capital expenditure (including intangible assets, capital advances and capital creditors)		(2,728.84)	(707.24)
Acquisition assets through business combination Proceeds from sale of Property, Plant and Equipment		(628.87) 13.19	4.13
Investment in wholly owned subsidiaries		(645.52)	(376.61)
Loan to ESOP trust		(3,522.00)
Purchase of bonds		(711.90)
			(712.18)
Proceeds from sale of bonds		499.95	350.53 (24, 591.91)
Investments in mutual funds Proceeds from sale / maturity of mutual funds		(33, 456.80) 35,762.24	25,068.92
Maturity / (Investments) in bank deposits having original maturity over three months		1,249.81	(4,464.82)
Investment in deposit with financial institutions		(100.00)
Inter corporate deposits given to wholly owned subsidiary		(419.59)
Interest received		709.07	359.89
Dividend received		53.16	131.45
Net cash used in investing activities	(B)	(3,926.10)	(4,937.84)
Cash flows from financing activities
Repayment of long term borrowings		(1.84)	(4.54)
Specific project related grant received			9.00
Payment of lease liabilities		(173.67)	(173.11)
Dividend paid		(1,987.05)	(1,069.95)
Interest paid		(68.81)	(38.28)
Net cash used in financing activities	(C)	(2,231.37)	(1,276.88)
Net (decrease)/ increase in cash and cash equivalents $(A + B + C)$		(298.76)	353.24
Cash and cash equivalents at the beginning of the year		862.72	532.63
Effect of exchange differences on translation of foreign currency cash and cash equivalents		(0.29)	(23.15)
Cash and cash equivalents at the end of the period/ year		563.67	862.72
Components of cash and cash equivalents
Cash on hand		0.09	0.10
Balances with banks
On current accounts #		302.74	360.22
On saving accounts		1.64	1.33
On deposit account with maturity of less than three months			292.50
On exchange earner's foreign currency accounts		259.20	208.57
Cash and cash equivalents		563.67	862.72

Of the cash and cash equivalent balance as at March 31, 2022, the Company can utilise $\bar{\ell}$ 35.75 million (Previous year: $\bar{\ell}$ 154.39 million) only towards certain predefined activities specified in the agreement.

Notes:

• $\mathbf{1}$ The audited condensed interim unconsolidated financial statements for the quarter and year ended March 31, 2022, have been taken on record by the Board of Directors at its meeting held on April 27, 2022 as recommended by the Audit Committee at its meeting held on April 26, 2022. The statutory auditors have expressed an unqualified audit opinion. The information presented above is extracted from the audited condensed interim unconsolidated financial statements.
• $\overline{2}$ The above unconsolidated financial results have been prepared from the condensed interim unconsolidated financial statements, which are prepared in accordance with Indian Accounting Standards ("Ind AS"), the provisions of the Companies Act, 2013 ("the Companies Act"), as applicable and guidelines issued by the Securities and Exchange Board of India ("SEBI"). The Ind AS are prescribed under Section 133 of the Companies Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and amendments issued thereafter. All amounts included in the unconsolidated financial results (including notes) are reported in millions of Indian rupees (in₹millions) except share and per share data, unless otherwise stated.
• The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the company towards Provident Fund and Gratuity. The Ministry of 3 Labour and Employment has released draft rules for the Code on Social Security, 2020 on November 13, 2020, and has invited suggestions from stakeholders which are under active consideration by the Ministry. The Company will assess the impact and its evaluation once the subject rules are notified and will give appropriate impact in its financial statements in the period in which, the Code becomes effective and the related rules to determine the financial impact are published.
• The Board of Directors at its meeting held in January 2022 approved the payment of an Interim Dividend of ₹ 20 per Equity Share of ₹ 10 each for FY 2021-22. Accordingly, in February $\overline{4}$ 2022, ₹1,528.50 million were paid towards the same.
• The Board of Directors at its meeting held on April 27, 2022, recommended a Final Dividend of ₹11 per Equity Share of ₹10 each for FY 2021-22. This Final Dividend is subject to the 5 approval of the Members at the ensuing 32nd Annual General Meeting which will be held on or before September 30, 2022.
• On March 1, 2022, the Company along with it's subsidiary completed the business acquisition of Data Glove IT Solutions Private Limited, and its subsidiaries and affiliate entities in India, USA, Australia, UK, Canada, Singapore and Costa Rica.
• $\overline{7}$ In accordance with para 4 of Notified Indian Accounting Standard 108 (Ind AS-108) "Operating Segments", the Company has disclosed segment information only on the basis of consolidated financial results.
• The investors are requested to visit the following website of the Company and Stock Exchanges for further details: • Company's website: https://www.persistent.com/investors
• · BSE Ltd: www.bseindia.com
• · National Stock Exchange of India Ltd.: www.nseindia.com

By order of Board of Directors of Persistent Systems Limited

Anand Deshpande

Pune Date: April 27, 2022 Dr. Anand Deshpande Chairman and Managing Director

'For risks and uncertainties relating to forward-looking statements, please visit our website :- www.persistent.com'

NSE & BSE / 2022-23 / 09

April 27, 2022

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,

In terms of the provisions of the Regulations 33(3)(d) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (the 'Regulations'), we hereby state that the Statutory Auditors of the Company M/s. Walker Chandiok & Co LLP, Chartered Accountants (Registration No. 001076N/N500013), have issued an Audit Report with an unmodified opinion on the Audited Financial Results of the Company (Standalone and Consolidated) for the quarter and year ended March 31, 2022.

Kindly take this declaration on record.

Thanking you,

Yours Sincerely,

For Persistent Systems Limited

AMIT Digitally signed MURARI MURARI ATRE

Amit Atre Company Secretary ICSI Membership No.: A20507

The operating segments are:

a. Banking, Financial Services and Insurance (BFSI)

b. Healthcare & Life Sciences

c. Technology Companies and Emerging Verticals

	in Million
				Quarter ended		Year ended
Sr. No.	Particulars				March 31, 2022 Dec 31, 2021 March 31, 2021	March 31, 2022	March 31, 2021
	Income
	1 Revenue from operations (net)			16,378.54 14,917.17	11,133.58	57,107.46	41,878.88
	2 Other income		420.73	306.64	400.36	1,439.55	1,077.72
	3 Total income				(1+2) 16,799.27 15,223.81 11,533.94	58,547.01	42,956.60
	4 Expenses
	- Employee benefits expense		10,073.67	9,103.37	6,853.90	34,593.10	25,157.99
	- Cost of professionals		2,139.15	2,031.24	1,543.13	7,974.18	5,563.68
	- Finance costs		49.29	25.50	15.83	118.35	57.94
	- Depreciation and amortization expense - Other expenses		511.35 1,353.98	427.85 1,271.73	419.05 853.25	1,660.12 4,958.47	1,755.50 4,327.06
	Total expenses		14,127.44 12,859.69		9,685.16	49,304.22	36,862.17
	5 Profit before exceptional items and tax	(3-4)		2,671.83 2,364.12	1,848.78	9,242.79	6,094.43
	6 Exceptional items		-	-	-	-	-
	7 Profit before tax	(5-6)		2,671.83 2,364.12	1,848.78	9,242.79	6,094.43
	8 Tax expense
	- Current tax - Tax charge in respect of earlier years / periods		601.27 40.87	635.59 19.31	495.67 3.68	2,322.85 42.57	1,774.01 10.58
	- Deferred tax charge / (credit)		19.79	(54.73)	(28.16)	(26.49)	(196.93)
	Total tax expense		661.93	600.17	471.19	2,338.93	1,587.66
	9 Profit for the period / year 10 Other comprehensive income	(7-8)		2,009.90 1,763.95	1,377.59	6,903.86	4,506.77
	A. Items that will not be reclassified
	to profit and loss
	- Remeasurements of the defined benefit liabilities / assets (net of tax)		(93.39)	9.61	24.52	(183.87)	10.25
			(93.39)	9.61	24.52	(183.87)	10.25
	B. Items that may be reclassified to profit and loss
	- Effective portion of cash flow hedge (net of tax)		(64.57)	39.91	(53.45)	(97.65)	383.54
	- Exchange differences in translating the financial statements of foreign operations		(194.88)	219.11	120.35	138.96	(20.07)
			(259.45)	259.02	66.90	41.31	363.47
	Total other comprehensive income for the period / year	(A+B)	(352.84)	268.63	91.42	(142.56)	373.72
	11 Total comprehensive income for the period / year (Comprising Profit / (Loss) and Other Comprehensive Income for the period / year)		(9+10) 1,657.06 2,032.58 1,469.01			6,761.30	4,880.49
	12 Paid-up equity share capital (Face value of share 10 each)		764.25	764.25	764.25	764.25	764.25
	13 Other equity excluding revaluation reserves 14 Earnings per equity share in (Nominal value of share 10 each)						27,192.41
	- Basic - Diluted		26.30 26.30	23.08 23.08	18.03 18.03	90.34 90.34	58.97 58.97
	15 Dividend per share in (Nominal value per share 10)
	- Interim dividend		-	20.00	-	20.00	14.00
	- Final dividend		11.00	-	6.00	11.00	6.00
	Total dividend		11.00	20.00	6.00	31.00	20.00

Persistent Systems Limited

Registered Office : Bhageerath, 402, Senapati Bapat Road, Pune 411016, India Ph. No. +91(20)67030000; Fax +91(20)67030009; Email : info@persistent.com, 'www.persistent.com'. CIN L72300PN1990PLC056696

Audited consolidated financial results of Persistent Systems Limited for the quarter and year ended March 31, 2022

Audited unconsolidated financial information

					in Million
		Quarter ended			Year ended
Particulars			March 31, 2022 Dec 31, 2021 March 31, 2021	March 31, 2022	March 31, 2021
Revenue from operations (net) Profit before tax Profit after tax	10,350.10 2,590.34 1,944.85	9,286.51 2,241.50 1,728.91	6,846.58 1,900.96 1,400.72	35,754.80 9,120.61 6,858.66	24,796.08 6,680.20 5,050.86

Segment wise Revenue, Results and Capital Employed

Particulars	As at March 31, 2022	As at As at March 31, 2020 March 31, 2021 (Audited)
ASSETS
Non-current assets
Property, plant and equipment	2,917.67	2,401.40
Capital work-in-progress	1,071.20	121.81
Right- of- use assets	1,358.21	852.58
Goodwill	2,790.22	85.94
Other intangible assets Financial assets	8,269.63	1,229.50
- Investments	3,877.72	3,621.27
- Loans	3,522.00	-
- Other non-current financial assets	340.74	160.52
Deferred tax assets (net)	1,122.72	1,037.57
Other non-current assets	531.61	441.52
Total non-current assets	25,801.72	9,952.11
Current assets
Financial assets
- Investments	4,346.91	6,374.95
- Trade receivables (net)	9,484.29	5,708.97
- Cash and cash equivalents	2,977.99	2,419.30
- Bank balances other than cash and equivalents - Loans	6,166.59 16.10	7,389.70 21.79
- Other current financial assets	3,214.90	2,516.70
Current tax assets (net)	179.57	188.00
Other current assets	1,952.90	2,083.72
Total current assets	28,339.25	26,703.13
TOTAL ASSETS	54,140.97	36,655.24
EQUITY AND LIABILITIES
Equity
Equity share capital	764.25	764.25
Other equity	32,917.95	27,192.41
Total Equity	33,682.20	27,956.66
Liabilities
Non- current liabilities
Financial liabilities
- Lease liabilities	1,114.29	716.17
- Borrowings	2,800.79	44.27
- Other financial liabilities	2,088.60	-
Provisions Total non-current liabilities	245.54 6,249.22	240.94 1,001.38
Current liabilities
Financial liabilities
- Lease liabilities	342.58	222.00
- Trade payables
- Dues of micro and small enterprises	10.30	30.20
- Due of creditors other than micro and small enterprises	4,288.41	2,703.24
- Borrowings	1,524.56	1.96
- Other financial liabilities	2,173.60	388.21
Other current liabilities	1,571.72	1,514.95
Provisions	3,949.66	2,477.79
Current tax liabilities (net)	348.72	358.85
Total current liabilities TOTAL EQUITY AND LIABILITIES	14,209.55 54,140.97	7,697.20 36,655.24

	in Million
Sr.			Quarter ended			Year ended
No.	Particulars		March 31, 2022 Dec 31, 2021 March 31, 2021		March 31, 2022	March 31, 2021
	1 Segment revenue
	- BFSI	5,321.19	4,808.48	3,158.04	18,063.65	12,857.05
	- Healthcare & Life Sciences	3,371.70	3,086.34	2,054.64	11,842.75	8,104.24
	- Technology Companies and Emerging	7,685.65	7,022.35	5,920.90	27,201.06	20,917.59
	Verticals
	Total		16,378.54 14,917.17 11,133.58		57,107.46	41,878.88
	2 Less: Inter segment revenue	-	-	-	-	-
	3 Net sales/income from operations	16,378.54	14,917.17	11,133.58	57,107.46	41,878.88
	4 Segment results i.e. profit/ (loss) before tax,
	interest and depreciation and amortization
	- BFSI	1,492.16	1,778.95	1,360.54	6,184.33	4,818.38
	- Healthcare & Life Sciences	1,692.18	1,569.97	1,108.67	6,063.74	3,982.47
	- Technology Companies and	2,873.73	2,446.53	1,863.68	9,269.10	6,449.40
	Emerging Verticals
	Total	6,058.07	5,795.45	4,332.89	21,517.17	15,250.25
	5 Less:
	- Finance costs	49.29	25.50	15.83	118.35	57.94
	- Other un-allocable expenses	3,757.68	3,712.47	2,868.64	13,595.58	10,175.60
	6 Un-allocable income	420.73	306.64	400.36	1,439.55	1,077.72
	7 Profit before tax	2,671.83	2,364.12	1,848.78	9,242.79	6,094.43

Audited consolidated statement of assets and liabilities

By order of Board of Directors of Persistent Systems Limited

Dr. Anand Deshpande Chairman and Managing Director

Pune April 27, 2022

"For risks and uncertainties relating to forward-looking statements, please visit our website :- www.persistent.com"

Note for segment wise information:

Operating segments are components of an enterprise for which discrete financial information is available that is evaluated regularly by the chief operating decision makers, in deciding how to allocate resources and assessing performance. The Group's chief operating decision makers are the Chief Executive Officer and Chairman & Managing Director.

Segment wise capital employed

8 - BFSI 2,570.89 1,950.45 - Healthcare & Life Sciences 2,274.57 1,525.69 - Technology Companies and Emerging Verticals 7,769.14 4,405.60 Total allocable segment assets 12,614.60 7,881.74 Unallocable assets 41,526.37 28,773.50 Total assets 54,140.97 36,655.24 Segment assets in Million As at March 31, 2022 March 31, 2021 Particulars

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

AUDITED CONSOLIDATED CASH FLOW STATEMENT

Notes :

• 1 The audited condensed interim consolidated financial statements for the quarter and year ended March 31, 2022, have been taken on record by the Board of Directors at its meeting held on April 27, 2022 as recommended by the Audit Committee at its meeting held on April 26, 2022. The statutory auditors have expressed an unqualified audit opinion. The information presented above is extracted from the audited condensed interim consolidated financial statements.
• 2 The above consolidated financial results have been prepared from the condensed interim consolidated financial statements, which are prepared in accordance with Indian Accounting Standards ("Ind AS"), the provisions of the Companies Act, 2013 ("the Companies Act"), as applicable and guidelines issued by the Securities and Exchange Board of India ("SEBI"). The Ind AS are prescribed under Section 133 of the Companies Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and amendments issued thereafter. All amounts included in the consolidated financial results (including notes) are reported in millions of Indian rupees ( in ? million) except share and per share data, unless otherwise stated.
• 3 The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the company towards Provident Fund and Gratuity. The Ministry of Labour and Employment has released draft rules for the Code on Social Security, 2020 on November 13, 2020, and has invited suggestions from stakeholders which are under active consideration by the Ministry. The Group will assess the impact and its evaluation once the subject rules are notified and will give appropriate impact in its financial statements in the period in which, the Code becomes effective and the related rules to determine the financial impact are published.
• 4 The Board of Directors at its meeting held in January 2022 approved the payment of an Interim Dividend of ? 20 per Equity Share of ? 10 each for FY 2021-22. Accordingly, in February 2022, ? 1,528.50 million were paid towards the same.
• 5 The Board of Directors at its meeting held on April 27, 2022, recommended a Final Dividend of ? 11 per Equity Share of ? 10 each for FY 2021-22. This Final Dividend is subject to the approval of the Members at the ensuing 32nd Annual General Meeting which will be held on or before September 30, 2022.

6 On March 1, 2022, the Group along with it's subsidiary completed the business acquisition of Data Glove IT Solutions Private Limited, and its subsidiaries and affiliate entities in India, USA, Australia, UK, Canada, Singapore and Costa Rica.

• 7 The investors are requested to visit the following website of the Company and Stock Exchanges for further details: • Company's website: https://www.persistent.com/investors
• BSE Ltd: www.bseindia.com
• National Stock Exchange of India Ltd.: www.nseindia.com

in Million

	For the year ended	in Million
Particulars
		March 31, 2022	March 31, 2021
Cash flow from operating activities
Profit before tax		9,242.79	6,094.43
Adjustments for:
Interest income		(600.22)	(558.70)
Finance costs		118.35	57.94
Depreciation and amortization expense		1,660.12	1,755.50
Unrealised exchange loss/ (gain) (net)		(25.92)	139.55
Change in foreign currency translation reserve		305.64	(42.32)
Exchange (gain) / loss on derivative contracts Exchange loss on translation of foreign currency cash and cash equivalents 1.70		79.38 11.50	(169.80)
Bad debts		65.27	90.30
(Reversal) / Allowance for expected credit loss (net)		(105.06)	31.32
Employee stock compensation expenses		950.23	290.44
Loss / Impairment of non current investments		148.40	18.53
Remeasurements of the defined benefit liabilities / asset (before tax effects)		(183.87)	10.25
Impairment of loan		-	23.96
Excess provision in respect of earlier years (written back)		(66.00)	(41.79)
Profit on sale/ fair valuation of financial assets designated as FVTPL Profit on sale of property, plant and equipment (net)		(354.30) (12.45)	(346.74) (1.34)
Operating profit before working capital changes		11,224.06	7,363.03
Movements in working capital :
Decrease / (Increase) in non-current and current loans		5.69	(40.03)
Increase in other non current assets		(147.89)	(76.81)
Increase in other current financial assets		(869.22)	(104.23)
Decrease / (Increase) in other current assets		146.71	58.26
(Increase) / Decrease in trade receivables		(3,508.56)	58.49
Increase in trade payables, current liabilities and non current liabilities		2,489.72	757.56
Increase in provisions Operating profit after working capital changes		1,476.47 10,816.98	924.95 8,941.22
Direct taxes paid (net of refunds)		(2,367.12)	(1,581.97)
Net cash generated from operating activities	(A)	8,449.86	7,359.25
Cash flows from investing activities
Payment towards capital expenditure (including intangible assets,		(3,853.97)	(1,281.04)
capital advances and capital creditors)
Proceeds from sale of property, plant and equipment Acquisition of step-down subsidiary including cash and cash equivalents :		46.02 (6,154.02)	30.02 (448.47)
61.07 million (Previous year : 30.90 million)
Purchase of bonds		(711.90)	(712.18)
Proceeds from sale/ maturity of bonds		499.95	350.53
Investments in mutual funds		(33,456.80)	(24,591.91)
Proceeds from sale / maturity of mutual funds		35,762.24	25,068.92
Maturity / (Investments) of bank deposits having original maturity over three months		1,121.92	(4,198.89)
Investments in deposits with financial institutions Investment in common / preferred stocks		(100.00) (123.61)	- -
Loan to ESOP Trust		(3,522.00)	-
Interest received		718.74	366.29
Net cash used in investing activities	(B)	(9,773.43)	(5,416.73)
Cash flows from financing activities
Repayment of long term borrowings		(1.84)	(4.54)
Net proceeds from long term borrowings		4,280.99	-
Payment of lease liabilities		(350.83)	(319.11)
Specific project related grant received Interest paid		- (118.38)	9.00 (58.01)
Dividends paid		(1,987.05)	(1,069.95)
Net cash generated from /(used in) financing activities	(C)	1,822.89	(1,442.61)
Net increase in cash and cash equivalents (A + B + C)		499.32	499.91
Cash and cash equivalents at the beginning of the year		2,419.30	1,899.99
Cash and cash equivalents acquired on acquisition		61.07	30.90
Effect of exchange difference on translation of foreign		(1.70)	(11.50)
currency cash and cash equivalents
Cash and cash equivalents at the end of the year		2,977.99	2,419.30
Components of cash and cash equivalents Cash on hand		0.24	0.41
Balances with banks
On current accounts #		2,337.96	1,583.20
On saving accounts		1.64	1.33
On exchange earner's foreign currency accounts		259.20	208.57
On deposit accounts with original maturity less than three months		-	625.79
On Escrow accounts**		378.95	-
Cash and cash equivalents		2,977.99	2,419.30

Out of the cash and cash equivalent balance as at March 31, 2022, the Group can utilise 35.75 Million (Previous year: 154.39 Million) only towards certain predefined activities specified in the agreement.

** The balance maintained in Escrow account will be released to selling shareholders on meeting specific conditions.