Persistent Systems Limited — Interim / Quarterly Report 2018

Oct 21, 2018

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PERSISTENT

NSE & BSE / 2018-19 / 67

October 21, 2018

The Manager, Corporate Services, National Stock Exchange of India Limited Exchange Plaza, Bandra Kurla Complex, Bandra (E), Mumbai 400051

The Manager, Corporate Services, BSE Limited 14[th ] Floor, P J Towers, Dalal Street, Mumbai 400001

Ref: Symbol: PERSISTENT

Ref: Scrip Code: 533179

Dear Sir/ Madam,

Sub.: Financial Statements for the quarter and half year ended September 30, 2018

We wish to inform you that the Board of Directors at its meeting held on October 20, 2018 and concluded on October 21, 2018, has approved the Financial Statements for the quarter and half year ended September 30, 2018.

Accordingly, please find enclosed the following documents:

1. Audited Consolidated Financial Statements for the quarter and half year ended September 30, 2018;

2. Audited Unconsolidated Financial Statements for the quarter and half year ended September 30, 2018.

Please acknowledge the receipt.

Thanking you,

Yours faithfully, For Persjstent ystems Limited Amit re Company Secretary Encl: As above

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Persistent Systems Limited, Bhageerath, 402, Senapati Bapat Road, Pune 411016 I Tel : +91 (20) 670 30000 Persistent Systems Inc., 2055, Laurelwood Rd, Suite 210, Santa Clara, CA 95054, USA I Tel : +1 (408) 216 7010 CIN - L72300PN1990PLC056696 I Fax - +91 (20) 6703 0009 I e-mail - info@persistent.com I Website - www.persistent.com

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CONDENSED CONSOLIDATED BALANCE SHEET AS AT SEPTEMBER 30, 2018

Note	s As at As at September 30, 2018 September 30, 2017 Inf Million Inf Million 2,450 98 2,669.23 3.15 29.14 65 20 76.80 2,227.99 2,834.12 243.96 157.51 As at March 31, 2018 Inf Million 2,581.30 7.71 76.61 2.463.54 44.72
ASSETS Non.current assets Property, Plant and Equipment 6.1 Capital work-in-progress Goodwill 6.2 Other Intangible assets 6 3 Intangible assets under development Financial assets - Investments - Loans -Other non-current financial assets Deferred tax assets (net) 10 Other non-current asse!s 11 Current assets Financial assets - Investments 12 • Trade receivables (net) 13 - Cash and cash equivalents 14 • Other bank bnlances 15 - loans 16 • Other current financial assets 17 Current tax assets {net) O!her current assets 18 TOTAL EQUll Y ANO LIABILITIES EQUITY Equity share capital Other equity LIABILITIES Non- current llabilltles Fmancial liabilities • Borrowngs 19 Provisions 20 Deferred tax liabilities {net) 10 Current liabilities Financial liabilities • Trade payables {(dues of micro and small 21 enterprises: Nil (September 30, 2017/March 31, 2018: Nil)] - Other financial liabilities 22 Other curren! liabilities 23 Provisions 24 Current tax hab1!1ties (net) TOTAL Summaryof significant accounting policies
	5,011.28 5,766.80 3,460.35 2,547.30 158.00 133.03 25.40 317.41 647.26 559.51 78.74 56.63 5,173.88 2,881.04 142.73 37.43 642.01 91.57
	9,381.03 9,380,68 8,968.66
	7,382.85 4,810.64 4,778.08 4,838.28 1,060.66 1,754.18 459.40 681.97 8.05 11.59 3,488 97 2,041.38 244.70 191.47 1,973.51 1,398.31 5,916.31 4,847.40 1,343.72 1.070.25 6.63 2,758.25 233.50 1,563.41
	19,416.24 15,727.82 17,739.-7
	28,797.27 25,108.50 BOO.DO BOO.DO 22,029.11 19,457.62 26,708.13 800.00 20,471.99
	22,829.11 20,257.62 21,271.99
	15.18 20.20 181.81 167.96 217.40 16.55 159.75 270.41
	196.99 405.56 446.71
	1,917.52 1,499.03 975.14 487.06 1,257.09 908 93 1,512.13 1,354.36 109.29 195.94 1,673.08 396.33 1,201.02 1,599 49 119.51
	5,771.17 4,445.32 4,989.43
	28,797.27 25,108.50 26,708.1.J

Summary of significant accounting policies

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The accompanying notes are an integral part of the condensed consolidated financial statements.

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A5 per our repor1 of even date
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For Deloitte Haskins & Sells LLP
Place. Pune
Dale Oc10ber 21, 2018
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For and on behalf of the Board of Directors of
Persistent Systems Limited
Executive Director and Company St"cretary
Chief Financial Officer
Place: Pune
Date : October 21. 2018
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CONDENSED CONSOLIDATED STATEMENT OF PROFIT AND LOSS FOR THE QUARTER AND HALF YEAR ENDED SEPTEMBER 30, 2018

Notes	For the quarter ended September 30, 2018 September 30, 2017 In f Million In t Million For the half year ended September 30, 2018 September 30, 2017 In t Million In f Million For the year ended March 31, 2018 Inf Million
Income Revenue from operations (net) Other income Total income (A) Expenses Employee benefits expense Cost of professionals Finance costs Depreciation and amortization expense Other expenses Total expenses (8) Profit before tax (A - B) Tax expense Current tax Tax credit in respect of earlier years Deferred tax charge/ (credit) Total tax expense Net profit for the period/ year (C) Other comprehensive income Items thatwillnot be reclassified to profit and loss (D) - Remcasurements of the defined benefit liabilities/ (asset) (net of tax) Items that may be reclassified to profit and loss (E) ¥ Effective portion of cash now hedge (net of lax) ¥ Exchange differences in translating the financial statements of foreign operations Total other comprehensive income for the period / year (D) + {E) Total comprehensive income for the period/ year (C) + (D) + (E) 25 26 27.1 27.2 6.4 28 Earings per equity share 29 [Nominal value of share ,10 (Corresponding period_I_Previous year:f10)] Basic (In') Diluted (In ') Summaryof significant accounting policies	8,355.57 232.21 7,612.52 336.34 16,698.38 418.96 14,892.67 704.25 30,337.03 1,191.01
	8,587.78 4,862.36 877.05 1.07 398.58 1,179.93 7,948.86 4,668.13 809.27 0.16 379.44 977.30 17,117.34 9,480.73 1,721.73 1.35 799.39 2,659.10 15,596.92 9,044.63 1,538.40 0.33 771.35 2,108.25 31,528.04 18,316.46 3,180.63 0.79 1,584.87 4,152.68
	7,318.99 6,834.30 14,662.30 13,462.96 27,235.43
	1,268.79 422.37 2.90 (37.89) 387.38 1,114.56 350.67 0.01 (62.35) 288.33 2,455.04 778.42 2.90 (81.17) 700.15 2,133.96 628.56 (12.24) (59.48) 556.84 4,292.61 1,203.99 (71.19) (71.07)
	(12.79) (139.16) 185.91 33.96 915.37 11.02 11.02 14.21 (92.32) 50.42 (27.69) 798.54 10.33 10.33 (25.84) (298.29) 337.71 13.58 1,768.47 21.94 21.94 56.74 (159.10) 72.09 (30.27) 1,546.85 19.71 19.71 106.88 (191.81) 77.70 (7.23) 3,223.65 40.39 40.39

The accompanying notes are an integral part of the condensed consolidated financial statements.

As per our report of even date

For Deloitte Haskins & Sells LLP ICAI Firm registration no.117366W/W�100018 Chartered Accountants

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Place: Pune Date : October 21, 2018

For and on behalf of the Board of Directors of Persistent Systems Limited � i' ·-L,.... � �v,vv��- Dr. Anand Deshpande � Kiran Umrootkar Chairman and Managing Director "" .t / ' Sunil Sapre Am Executive Director and Company Secretary J/, Chief Financial Officer Place: Pune Date : October 21, 2018

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Persistent Systems limited
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CONSOLIDATED CASH FLOW STATEMENT FOR THE HALF YEAR ENDED SEPTEMBER 30, 2018

	For the half year end September 30, 201B Septem InfMillion	ed ber 30, 2017 In ? Million For the year ended March 31, 2018 Int Million
Cash flow from operating activities Profit before tax Adjustments for: Interest income Finance costs Dividend income Depreciation and amortization expense Amortization of lease premium Unrealised exchange loss/ (gain) (net) Change in foreign currency translation reserve Exchange loss/ (gain) on derivative contracts Exchange (gain)/ loss on translation of foreign currency cash and cast1 equivalents Donations in kind Bad debts Provision for doubtful receivables (net) Employee stock compensation expenses Provision for diminution in value of non current investments Remeasurements of the defined benefit liabilities/ (asset) (before tax effects) Excess provision in respect of earlier years written (back)I_off Advances written back {Gain)/ loss on fair valuation of assets designated as at FVTPL (Profit)/ loss on safe of investments (net) (Profit) / loss on sale of fixed assets (net) Operating profit before working capital changes Movements in working capital (Increase)/ Decrease in non-current and current loans (Increase)/ Decrease in other non current assets (Increase)/ Decrease in other current financial assets (Increase)/ Decrease in other current assets (Increase)/ Decrease in trade receivables Increase/ (Decrease) in trade payables and current liabilities Increase/ (Decrease) in provisions Operating profit after working capital changes Direct taxes paid (net of refunds) Net cash generated from_I(used in) operating activities Cash flows from Investing activities Payment towards capital expenditure (including intangible assets) Proceeds from sale of fixed assets Acquisition of step-down subsidiary net of cash of W.35 million (Previous period_I_year� 169.22 million) Purchase of bonds Purchase of non-current investments Investments in mutual funds Proceeds from sale/ maturity of mutual funds Investments in bank deposits having original maturity over three months Maturity of bank deposits having original maturity over three months Investments in deposit wth financial institutions Maturity of deposit with financial institutions Inter corporate deposits refunded Non current loans (made)I_refunded Interest received Dividends received Net cash generated from_I{used in) investing activities Cash flows from financing activities (Repayment of) long term borrowngs Specific project related grant received Interest paid Dividends paid Tax on dividend paid Net cash generated fromI{used in) financing activities (A) (B) (C )	2,455.04 (132.58) 1.35 (83.88) 799.39 0.29 (47.84) 75.86 128.96 11.99 70.28 (26.34) (38.20) (20.07) 115.69 (213.57) (1.51)	2,133.96 (71.18) 0.33 (87.38) 771.35 0.29 (130.77) 51.36 24.35 (49.85) 0.16 40.22 (22.92) 3.80 16.10 81.69 0.21 (23.75) 15.12 (129.53) (1.13) 4,292.61 (161.54) 0.79 (171.25) 1,584.87 0.58 (123.74) (28.46) 76.73 (100.66) 0.16 183.97 (151.38) 3.80 26.96 148.47 (18.19) (23.76) 18.92 (186.84) (2.40)
	3,094.86	2,622.43 5,369.64
	(2.57) (14.17) (557.23) (410.10) 67.16 351.24 (65.30)	3.51 4.82 20.39 (531.20) 197.01 (135.62) (14.89) 2,166.45 (562.26) 1,604.19 (1.31) (3.42) 72.03 (696.30) 157.17 305.93 222.03 5,425.77 (1,213.84) 4,211.93
	2,463.89 (790.38) 1,673.51
	(186.16) 1.94 (148.15) (529.89) (144.96) (11,581.81) 10,369.76 (1,650.12) 2,112.51 (300.00) 150.35 (14.12) 173.23 83.88	(415.18) 1.25 (359.07) (413.98) (6,243.54) 6,261.66 (17.73) (5.35) 14.85 0.10 21.58 87.38 (654.56) 3.12 (408.35) (595.43) (15,502.22) 14,290.26 (326.06) 42.26 (595.35) 0.18 101.00 171.25
	(1,663.54)	(1,068.03) (3,473.90)
	(3.22) 4.50 (2.12) (239.10) (20.18)	(3.22) (1.13) (239.80) (48.86) (4.58) (1.54) (799.79) (150.23)
	(260.12)	(293.01) (956.14)

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Persistent Systems Limited CONSOLIDATED CASH FLOW STATEMENT FOR THE HALF YEAR ENDED SEPTEMBER 30, 2018

For the half year ended September 30, 2018 September 30, 2017 Inf Million Inf Million (250.15) 243.15 1,345.13 1,462.58 (11.99) 49.85 1,082.99 1,755.58 0.25 0.13 5.33 927.77 1,521.29 20.20 0.76 127.13 232.00 For the year ended March 31, 2018 Inf Million (218.11) 1,462.58 100.66 1,345.13 0.23 1,196.91 0.75 145.83

Net increase/ (decrease) in cash and cash equivalents (A+ B + C} Cash and cash equivalents at the beginning of the period/ year Effect of exchange difference on translation of foreign currency cash and cash equivalents Cash and cash equivalents at the end of the periodIyear Components of cash and cash equivalents Cash on hand (Refer note 14) Cheques on hand (Refer note 14) Balances with banks On current accounts# (Refer note 14) On saving accounts (Refer note 14) On Exchange Earer's Foreign Currency accounts (Refer note 14) On unpaid dividend accounts' (Refer note 15)

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Cash and cash equivalents

Out of the cash and cash equivalent balance as at September 30, 2018, the Group can utilise 't 2.98 million only towards research and development activities specified in the loan/ grant agreement. There were no such restrictions for utilisation of the cash and cash equivalent balance as at September 30, 2017 and March 31, 2018.

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

Summary of significant accounting policies - Refer note 4

The accompanying notes are an integral part of the condensed consolidated financial statements.

As per our report of even date

For Deloitte Haskins & Selfs LLP !CAI Firm registration no.117366W/W-100018 Chartered Accountants

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Place: Pune Date : October 21, 2018

For and on behalf of the Board of Directors of Persistent Systems Limited

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Dr. Anand Deshpande
Chairman and Managing Director
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Sunil Sapre
Executive Director and
Chief Financial Officer
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Amit A
Com� ny Secretary
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Place: Pune Date : October 21, 2018

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Persistent Systems Limited
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CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF YEAR ENDED SEPTEMBER 30, 2018

A. Share capital

(Refer note 5)

(In f Million)	(In f Million)	(In f Million)
Balance as at April 1, 2018	Changes in equity share capital during theperiod	Balance as at September 30, 2018
800.00	~~-~~	800.00
(Inf Million)
Balance as at April 1, 2017	Changes in equity share capital during theperiod	Balance as at September 30, 2017
800.00	~~-~~	800.00
(In f Million)
Balance as at April 1, 2017	Changes in equity share capital during theyear	Balance as at March 31, 2018
800.00	~~-~~	800.00

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CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF YEAR ENDED SEPTEMBER 30, 2018 B.Othetequlty

B.Othetequlty
							(In? Mlll!on}
Particulars	Securities premium General reserve		ResNves and surplus Shnre optlons outstanding Gain om bargain purchase Retained earnings			E	Items of other comprehenslVI income Exchange diference: ffective portion ofI on translating the cash flow hedges financial statements of foreign operations		Total
			Shnre optlons outstanding				ffective portion of cash flow hedges
Balance as atAprll 1, 2018 Net pro!1tlor the period Other comprehens1ve 1ncome forthe penod D1v1dend Tax on dividend Translerto general reserve Employee stock compensation expenses AdJvstments towards employees stoc� options Add1t1cn on busmess combmat1on (refer note 35) Other changes during theperiod	1.336.70	9 306.27 7.54	90.52 (7.54)	26.39 0.25 48.58	9 544,13 1.754.89 (25.84) (240.00) (20.18)		1s.s3 (298.29)	I 1s1.Js 1 337.71	20,471.99 1.754.89 13.58 (240.00) (20.18) 0.25 48,58
Bal.nce as at September30_ 2018	1 _336.70	9 _313.81	8 2.98	75.2J	11,013_�(0 _		~~�~~	489.06	! _i:Jl_29.1
							(n? Mllllo�l
Partlculars			Reserves and su	rplus			Items or other comprehensive lncq_!e		Tota!
	Securities premium	Gelcral	Share options outstanding	Gain om bargain purchase	Reta!ned eamings	E	ffective portion of cash flowhedges	Exchalge differences I on translating the f!nancial s!atements of foreign oper.it!ons
Balance as at April1,2017 Net prof1tforthe period Other comprehensive income for the period D1v1dend Tax on d1v1dend Transfer to genera! reserve Employetstockcompensat1on expenses Adjustments towards employees stock options Other chan!es duringtheperiod	1336.70	7.837.-0 31.60	187 12 3 80 (31.60)	24.25 3.20	8.525.07 �.577.12 56.74 (240,00) (48.86)		205.,4 (159.10)1	I 73.ss 72.09	18,192.63 1,577.12 (30.27) (240.00) (48.85) 3.60 3.20
Balance as at September30,2017	1,336.70	7,869.00	**159.3 2 **	27.45	9 ~~_~~870.07		49,34	145.74	! 19,457.62

			**/lnt Mllllor **	**/lnt Mllllor **	**/lnt Mllllor **	**/lnt Mllllor **	**/lnt Mllllor **	**/lnt Mllllor **
Particulars	Securities premium General		Reserves .nd su	rpus Gain om bargain purchase Retalned eam!ngs		!�(_Qtt�r c_o!Pr�'elsJ_e_nc2� Effectiv, portion of cash flow hedges Exchange diterences on translatlng the financial statements of foreign operations		Total
			Share options outstanding
B.lance asatApril1,2017 NPtproMfor the year Othercomprehens1ve 1ncome for the year D1v1dend Tax on dividend Transfer to general reserve Employee stock compensation expenses AdJustments towrds employees stock options Other chanes during theyear	1,336.70	7,837.40 1 358,47 100.40	187.12 3.80 (100.40)	24.25 2.14	8,525.07 3.230.88 106.88 (800.00) (150.23) (1,368.47)	208.44 (191,8",)	73.65 77.70	18,192.63 3,230.88 (7.23) (800.00) (150.23) 3,80 2.14
**Balance atMarch 31. 2018 **	1 i336.70	9.306. 27	90.52	26.39	9_544.13	16.63	151.35I	2o�gJ,99

S[ummar] r_g[f ] __ !;ig_r,_1fi_c: r:i[t] ��-c:_9:�r,!1_i:i_g ohc1es • Refer note 4

The accompanying notes are an integral part of the condensed consolidated financ1a! statements.

As per our report of even date

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Pl.ice. Pune
Date October 21, 2018
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For and on behalf or the Board of Directors of
Persistent Systems Limited
�
�,J_J
Dr Anand Deshpande )�� KlranUmroot kac
Dmtoc
/�
-
C��:=f= Sun!! �.1pre Amit Atre
Executive Director and Ch1efFmanc1al Off,ce• CompanySecrj!p,ri . /'"''
Place Pvne
Date Octcbe 1 2018 z
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Persisfent Systems Limited
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Notes forming part of condensed consolidated financial statements

1. Nature of operations

Persistent Systems Limited (the "Company" or "PSL") is a public Company domiciled in India and incorporated under the provisions of the Companies Act, 1956 (the "Act"). 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.

Akshat Corporation (d.b.a. RGen Solutions) based in USA, a wholly owned subsidiary of PSI, is engaged in development, delivery and maintenance of IT software 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 Group Limited, (an Ireland based wholly owned subsidiary of 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 Things service creation platform that allows enterprises to add a service layer (or "business logic") to the basic APls exposed to by connected devices, and to expose and monetize these APls.

Valista Limited (an Ireland based wholly owned subsidiary of Aepona Group 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 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.

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., is working on implementation of platforms and related IT services for the healthcare industry.

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Persistent Systems Limited
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Notes forming part of condensed consolidated financial statements

2. Basis of preparation

The financial statements of the Group have been prepared on an accrual basis and under the historical cost convention except for certain financial instruments, equity settled employee stock options and initial recognition of assets acquired under business combinations which have been measured at fair value. Historical cost is generally based on the fair value of the consideration given in exchange for goods and services. The accounting policies are consistently applied by the Group 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 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 Companies Act, 2013.

3. Principles of consolidation

The consolidated financial statements of the Company and its subsidiaries ("the Group") for the quarter and half year ended September 30, 2018 are prepared in accordance with generally accepted accounting principles applicable in India, and the Indian Accounting Standard 110 (Ind AS 110) on 'Consolidated Financial Statements', notified by Companies (Accounting Standards) Rules, 2015, ("Indian Accounting Standards") by and to the extent possible in the same format as that adopted by the Company for its separate financial statements.

The Company consolidates entities which it owns or controls. The consolidated financial statements comprise the financial statements of the company, its subsidiaries as disclosed below. Control exists when the parent has power over the entity, is exposed or has rights to variable returns from its involvement with the entity; and has the ability to affect those returns by using its power over the entity. Power is demonstrated through existing rights that give the ability to direct relevant activities, those which significantly affect the entity's returns. Subsidiaries are consolidated from the date control commences until the date control ceases.

The financial statements of the Company and its subsidiary companies have been combined on line by line basis by adding together the book values of like items of assets and liabilities, income and expenses after eliminating intra group balances and intra group transactions except where cost cannot be recovered. The unrealized profits or losses resulting from the intra group transactions and balances have been eliminated.

The consolidated financial statements include the share of profit / loss of associate companies, which are accounted for under the 'Equity method'. The share of profit/ loss of the associate company has been adjusted to the cost of investment in the associate, as per the 'Equity method'. An associate is an enterprise in which the investor has significant influence and which is neither a subsidiary nor a joint venture.

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The excess of the cost to the Company of its investment in a subsidiary and the Company's portion of equity of subsidiary on the date at which investment in the subsidiary is made, is described as goodwill and recognized separately as an asset in the consolidated financial statements. The excess of the Company's portion of equity of the subsidiary over the cost of investment in the subsidiary is treated as gain on bargain purchase in the consolidated financial statements. Goodwill is tested for impairment on a periodic basis and written off if found impaired.

The consolidated financial statements are prepared using uniform accounting policies for like transactions and other events in similar circumstances and necessary adjustments required for deviations, if any, are made in the consolidated financial statements. The consolidated financial statements are presented in the same manner as the Company's separate financial statements.

The financial statements of the subsidiary companies used in the consolidation are drawn up to the same reporting date as of the Company.

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Persistent Systems Limited
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Notes forming part of condensed consolidated financial statements

The subsidiary companies considered in consolidated financial statements are as follows:

Name of the subsidiary Persistent Systems, Inc. Persistent Systems Pte Ltd. Persistent Systems France SAS Persistent Telecom Solutions Inc. - -	Ownership Percentage as at September September March 31, 30, 2018 30,2017 2018 100% 100% 100%	Ownership Percentage as at September September March 31, 30, 2018 30,2017 2018 100% 100% 100%	Ownership Percentage as at September September March 31, 30, 2018 30,2017 2018 100% 100% 100%	Ownership Percentage as at September September March 31, 30, 2018 30,2017 2018 100% 100% 100%	Country of incorporation USA
	100%		100%	100%	Singapore
	100% 100%		100%	100% 100%	France USA
			100%
Persistent Systems Malaysia Sdn. Bhd.	100%		100%	100%	Malaysia
Akshat Corporation (d.b.a. RGen Solutions) * Aepona Holdings Limited	100% 100% 100% 100%		100% 100% 100% 100%	100% 100% 100% 100% ·-	USA - Ireland Ireland UK
Aepona Group Limited Aepona Limited
Valista Limited Persistent Systems Lanka (Private) Limited - --- Persistent Systems Mexico, S.A. de C.V. Persistent Systems Israel Ltd.	100% 100% 100% 100%		100% 100% 100% 100%	100% 100% 100% 100%	Ireland Sri Lanka Mexico Israel
Persistent Systems Germany GmbH	100%		100%	100%	Germany
PARXWerk AG	100%		100%	100%	Switzerland
PARX Consulting GmbH ·--- Herald Technologies Inc** -·-	100% ·- 100%		100% -	100% -	Germany USA

• Refer note 32.

** Refer note 35.

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Notes forming part of condensed consolidated financial statements

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4. Summary of significant accounting policies

(a) Use of estimates

The preparation of the condensed 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 / year. Although these estimates are based on the management's 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.

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 of-completion 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.

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.

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. Property, plant and equipment

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 asset's expected useful life and the expected residual value at the 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 value-in-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 projections take into account past experience and represent management's best estimate about future developments.

vi. Provisions

Provisions are determined based on the best estimate 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.

vii. Internally generated Intangible assets

During the period/year, the management continued to assess the recoverability of the Group's internally generated intangible 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 the these intangible assets as recoverable.

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Notes forming part of condensed consolidated financial statements

(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 book value 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 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

Business combinations are accounted for using the acquisition method under the provisions of Ind AS 103 - Business Combinations.

The cost of an acquisition is measured at the fair value of the assets acquired and liabilities incurred or assumed on the date of acquisition, which is the date on which control is transferred to the Group. The cost of acquisition also includes the fair value of contingent consideration, if any. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair value on the date of acquisition.

Transaction costs that the Group incurs in connection with a business combinations are expensed as incurred.

(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.

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Notes forming part of condensed consolidated financial statements

(f) Depreciation and amortization

Depreciation on Property, Plant and Equipment is provided using the Straight Line Method ('SLM') over the useful lives of 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* Ofice equipments	3 years 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 ears

*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 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 commencing 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 profit or 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)

Financial assets that are held within a business model whose objective is achieved both by collecting contractual cash flows and selling the financial assets and the assets' contractual cash flows represent solely payments of principal and 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 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.

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Notes forming part of condensed consolidated financial statements

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 - "Financial Instruments" relating 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 profit or loss or when a hedged transaction is no longer expected to occur.

Oerecognition

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 derecognition of a financial asset in its entirety, the difference between the asset's carrying amount and the sum of 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 profit or loss.

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 profit or 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 as 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 at FVTPL.

Oerecognition

The Group derecognises financial liabilities when the Group's obligations are discharged, cancelled or have expired. The difference between the carrying amount of the financial liability derecognised and the consideration paid and payable is recognised in profit or loss.

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Notes forming part of condensed consolidated financial statements

(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 asset's recoverable amount.

Recoverable amount of intangible 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.

An impairment loss is recognized wherever the carrying amount of an asset exceeds 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.

(i) Borrowing costs

Borrowing cost includes interest, 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.

(j) Leases

Where the Group is a lessee

Leases, where the lessor effectively retains substantially all the risks and benefits of ownership of the leased item, are classified as operating leases.

Operating lease payments are recognized as an expense in the statement of profit and loss as per the terms of the lease agreements.

(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

Effective April 1, 2018, the Group adopted Ind AS 115 "Revenue from Contracts with Customers" using the cumulative catch-up transition method, applied to contracts that were not completed as of April 1, 2018. In accordance with the cumulative catch-up transition method, the previous period's/ year's amounts have not been retrospectively adjusted. The following is a summary of new and/or revised significant accounting policies related to revenue recognition. The effect on adoption of Ind AS 115 was insignificant.

The Group 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 thereis no uncertainty as to measurement or collectability of consideration, is recognized as per the percentage-of-completion m�JhQd. When there

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Notes forming part of condensed consolidated financial statements

is uncertainly as to measurement or ultimate colleclability, revenue recognition is postponed until such uncertainty is resolved.

Revenue from licenses where the customer obtains a "right to use" the licenses is recognized at the time the license is made available to the customer. Revenue from licenses where the customer obtains a "right to access" is recognized over the access period.

The Group has applied the principles under Ind AS 115 to account for revenues from these performance obligations.

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 royalty 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 Service Tax, value added taxes (VAT) on behalf of the government and, therefore, these are not economic benefits flowing to the Group. Hence, they are excluded from revenue.

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(ii) Interest

Interest income is recognized on a time proportion basis taking into account the carrying amount and the effective interest rate. Interest income is included under the head 'Other income' in the statement of profit and loss.

(iii) Dividend

Dividend income is recognized when the Group's right to receive dividend is established. Dividend income is included under the head 'Other income' in the statement of profit and loss.

(I) Government grants

Government grants are recognised 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.

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Notes forming part of condensed consolidated financial statements

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Translation of foreign operations

The Group presents the 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 Group 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 Group has no obligation, other than the contribution payable to the provident fund.

(ii) Gratuity

Gratuity is a defined benefit obligation plan operated by the Group for its employees covered under Group 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 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 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 for twelve months after the reporting date.

(v) Long service awards

Long service awards are other long term benefits to all eligible employees, as per Group's policy. 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

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Notes forming part of condensed consolidated financial statements

carrying amounts. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the reporting date.

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 profiU 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. Deferred tax assets are recognized only to the extent that sufficient future taxable income will be available against which such deferred tax assets can be realized.

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 which reverse during the tax holiday period, to the extent the Group's gross total income is subject 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 I 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 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 profit and loss and shown as "MAT Credit Entitlement." The Group reviews the "MAT credit entitlement" asset at each 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

The Group's operations predominantly relate to 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 are regularly reviewed by the Group's Chief Operating Decision Maker are identified as operating segments.

(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 financial statements of the Group as a whole.

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Notes forming part of condensed 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 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. Further, the weighted average number of equity shares used in computing the basic earnings per share is reduced by the shares held by PSPL ESOP Management Trust at the balance sheet date, which were obtained by subscription to the shares from finance provided by the Group.

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 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 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.

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(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 - "Share Based Payments", the 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 vesting period has expired and the Group's best estimate of the number of equity instruments that will ultimately vest.

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.

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Persistent Systems Limited
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Notes forming part of condensed consolidated financial statements

5. Share capital

Share capital
	As at As at As at September 30, September 30, March 31, 2018 2018 2017 IniMillion IniMillion IniMillion
Authorized shares (No. in million) 200 (Previous period /Previous year: 200) equity shares of� 10 each Issued, subscribed and fully paid-up shares (No. in million) 80 (Previous period /Previous year: 80) equity shares of� 10 each Issued, subscribed and fully paid-up share capital	2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00
	800.00 800.00 800.00
	800.00 800.00 800.00

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)	Million)
	As	at			As at	As at
	September	30,	2018	September 30, 2017		March	31,	2018
	No. of	Amount		No. of	Amount	No. of	Amount
	shares			shares		shares
Number of shares at the beginning	80.00		800.00	80.00	800.00	80.00		800.00
of theperiod/year
Number of shares at the end of	80.00		800.00	80.00	800.00	80.00		800.00
**theperiod/ year **

b) Terms / rights attached to equity shares

The Group 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 Group declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

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

	For the period of	For the period of	For the period of
	five years ended	five years ended	five years ended
	September 30, 2018	September 30, 2017	March 31, 2018
	No in Million	No in Million	No in Million
Equity shares allotted on March 12, 2015 as	40.00	40.00	40.00
fully paid bonus shares by capitalization of
securitiespremium � 400.00 million

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Notes forming part of condensed consolidated financial statements

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

Name of the shareholder*	As at	As at	As at	As at	As at
	September 30, 2018		September 30, 2017		March 31,	2018
	No. in	%	No. in	%	No. in	%
	Million	Holding	million	Holding	million	Holding
Dr. Anand Deshpande jointly with	22.93	28.66	22.93	28.66	22.93	28.66
Mrs. Sonali Anand Deshpande
Saif Advisors Mauritius	1.30	1.62	4.27	5.33	3.70	4.62
Limited

• The shareholding information is based on legal ownership of shares and has been extracted from the records of the Group including register of shareholders / members.

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Notes forming part of condensed consolidated financial statements

6.1 Property, Plant and Equipment

6.1 Propery, Plant and Equipment
			Int Million
Gross block (At cost) As at April 1, 2018 Additions Additions through business combination (refer note 35) Disposals Effect of foreign currency translation from functional currency to reporting currency As at September 30, 2018 Depreciation and impairment As at April 1, 2018 Charge for the period Additions through business combination (refer note 35) Disposals Effect of foreign currency translation from functional currency to reporting currency As at September 30, 2018 Net block As at September 30. 2018 As at March 31, 2018	Land. Freehold Buildings• 221.03 2.450.18 0.07 0.51 2.46	Com	puters Office Plant and Leasehold Furniture and Vehicles Total equipments Equipment improvements fixtures 2.392.46 86.63 1.408.62 94.84 665.41 4.73 7.323.90 70.93 2.35 11.23 5.98 2.34 92.90 0.09 0.03 0.12 30.67 1.73 12.94 0.47 45.81 50.98 3.68 1.70 3.29 14.74 77.36
	221.54 2,452.71		2.483.79 90.93 1,408.61 98.13 685.69 7.07 7,448.47 2.078.80 62.14 1.097.81 69.78 544.39 4.42 4.742.60 112.09 4.88 45.09 4.16 26.59 0.24 242.58 0.02 0.01 0.03 30.53 1.44 12.94 0.47 45.38 44.24 1.77 0.77 1.69 8.49 57.66
	885.26 49.53 0.70
	935.49		2,204.62 67.35 1,130.73 75.63 579.01 4.66 4.997.49
	221.54 1,517.22		279.17 23.58 277.88 22.50 106.68 2.41 **2.450.98 **
	221.03 1 564.92 Land. Freehold Buildings"	Com	313.66 24.49 310.81 25.06 121.02 0.31 2,581.30 (In? Million)
			puters Office Plant and Leasehold Furniture and Vehicles Total equipments Equipment improvements fixtures
Gross block {At cost) As at April 1. 2017 Additions Additions through business combination Disposals Effect of foreign currency translation from functional currency to reporting currency As at September 30, 2017 Depreciation and impairment As at April 1. 2017 Additions through business combination Charge for the period Disposals Effect of foreign currency translation from functional currency to reporing currency As at September 30, 2017 Net block As at September 30, 2017	219.02 2.420.77 11.16 1.34 6.01		2,233.17 76.43 1.373.11 86.38 622.64 4.73 7.036.25 74.68 5.61 26.37 1.26 18.72 137.80 16.83 1.01 3.15 13.20 34.19 44.29 0.84 4.72 49.85 17.86 (0.78) (2.54) 4.39 (2.84) 23.44
	220.36 2,437.94 784.92 49.08 1.43		2,298.25 81.43 1,395.37 92.03 651.72 4.73 7,181.83 1.863.38 52.41 1.026.57 55.86 480.54 4.21 4.267.89 9.95 0.44 2.28 5.94 18.61 131.11 4.50 47.90 3.90 26.19 0.11 262.79 44.28 0.73 4.72 49.73 14.98 (0.34) (1.97) 3.55 (4.61) 13.04
	835.43		1,975.14 56.28 1,070.06 63.31 508.06 4.32 4,512.60
	220.36 1,602.51		323.11 25.15 325.31 28.72 143.66 0.41 2,669.23

.. Note: Building includes those constructed on leasehold land:

a) Gross block as on September 30. 2018 ? 1,454.1 O million (Corresponding period f 1,434.63 million/ Previous year f 1,454.10 million)

b) Depreciation charge for the period f 29.55 million (Corresponding period, 29.17 million/ Previous year, 58.45 million)

c) Accumulated depreciation as on September 30, 2018, 410.60 mtmon (Corresponding period, 351.77 million I Previous year, 381.05 million)

d) Net book value as on September 30, 2018 f 1,043.50 million (Corresponding period, 1,082.86 million/ Previous year� 1,073.05 million)

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Persistent Systems Limited
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Notes forming part of condensed consolidated financial statements

6.1 Property, Plant and Equipment

Gross block (At cost) As at April 1. 2017 Additions Additions through business combina Disposals Effect of foreign currency translation currency to reporing currency As at March 31, 2018 Depreciation and impairment As at April 1, 2017 Charge for the year Additions through business combina Disposals Effect of foreign currency translation currency to reporting currency As at March31,2018 Net block As at March 31, 2018		(Inf Million) Land - Buildings Computers 6tticeequipments Plant and Leasehold Furnitureand Vehicles Total Freehold Equipment improvements fixtures 219.02 2.420.77 2.233.17 76.43 1,373.11 86.38 622.64 4.73 7,036.25 20.40 189.10 9.97 57.89 1.73 26.66 305.75 16.83 1.01 3.15 13.20 34.19 90.67 1.05 27.00 0.58 119.30 2.01 9.01 44.03 0.27 1.47 6.73 3.49 67.01 221.03 2,450.18 2,392.46 86.63 1,408.62 94.84 665.41 4.73 7,323.90
	tion from functional tion from functional
		784.92 1,863.38 52.41 1,026.57 55.86 480.54 4.21 4,267.89 98.12 254.08 10.09 94.63 7.85 55.95 0.21 520.93 9.95 0.44 2.28 5.94 18.61 90.41 0.94 26.64 0.59 118.58 2.22 41.80 0.14 0.97 6.07 2.55 53.75 885.26 2,078.80 62.14 1,097.81 69.78 544.39 4.42 4,742.60
		221.03 1,564.92 313.66 24.49 310.81 25.06 121.02 0.31 2,581.30

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Notes forming part of condensed consolidated financial statements

6.2. Goodwill

	September 30, 2018 In fMillion September 30, 2017 In, Million March 31, 2018 Inf Million
Cost Balance at beginning of period/ year Additional amounts recognised from business combinations occurring during the period/year Effect of foreign currency exchange differences Balance at end of period/ year 6.3. Other Intangible assets	76.61 8.59 76.23 0.77 (0.20) 76.23 0.77 (0.39)
	85.20 Software 2,422.24 40.83 173.19 2,636.26 2,076.02 130.85 158.07 2,364.94 76.80 Acquired contractual ri his 3,983.87 39.61 425.41 4,448.89 1,866.55 425.96 199.71 2,492.22 76.61 Inf Million Total 6,406.11 80.44 598.60 7,085.15 3,942.57 556.81 357.78 4,857.16
Gross block As at Apri! 1, 2018 Additions Effect of foreign currency translation from functional currency to reporting currency As at September 30, 2018 Amortization and Impairment As at April 1, 2018 Charge to, the period Effect of foreign currency translation from functional currency to reporting currency AsatSeptember 30, 2018 Net block As at September 30, 2018 As at March 31, 2018
	271.32 346.22 1,956.67 2,117.32 2,227.99 2,463.54
	(InfMillion)
	Software 2,385.43 11.81 17.48 2,414.72 1,724.63 172.96 15.67 Acquired contractual 2,980.69 317.56 481.05 27.39 3,806.69 1,126.44 335.60 11.99 Total 5,366.12 329.37 481.05 44.87 6,221.41 2,851.07 508.56 27.66
As al April 1. 2017 Additions Additions through business combination Disposals Effect of foreign currency translation from functional currency to reporing currency As al September 30, 2017 Amortization and impaim,ent As atApri! 1, 2017 Charge for the period Effect of foreign currency translation from functional currency to reporting currency As at September 30, 2017 Net block As at September 30, 2017
	1,913.26 1,474.03 3,387.29
	Software Acquired contractual
As at April 1, 2017 Additions Additions through business combination Effect of foreign curency translation from functional currency to reporting currency As at March 31, 2018 Amorization and impairment As at April 1, 2017 Charge for the year Effect of foreign currency translation from functional currency to reporting currency As at March 31, 2018 Net block As at March 31, 2018 As at March 31, 2017 6.4. Depreciation and amortization	2,385.43 20.11 16.70 2,422.24 1,724.63 334.64 16.75 2,980.69 493.75 489.16 20.27 3,983.87 1,126.44 729.30 10.81 5,366.12 513.86 489.16 36.97 6,406.11 2,851.07 1.063.94 27.56
	2,076.02 346.22 660.80 1,866.55 2,117.32 1,854.25 3,942.57 2,463.54 2,515.05
On Property, Plant and Equipment On other intangible assets

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Notes forming part of condensed consolidated financial statements

1. Non-current financial assets: lnveslments (refer note 30)

	As at As at September 30, 2018 September 30, 2017 InfMillion Inf Million As" March 31,2018 InfMillion
Investments carried under equity accounting method Unquoted Investments Investments in equity instruments In associates Khsma e·Serccs Private l.1mrted {Ho!dmg 50% (Corresponding penod / Prevous year 50%)) O 005 m1lhon (Corresponding period/ Previous year· O 005 m1!1ion) shares of� 10 each, fuy paid up Less . Impairment of non-current unquoted investments Total investments carried equity accounting method (A) Investments carried at amortised cost Quoted Investments In bonds {Market value t 1,695 36 million (Corwspondmg pe11od � 994 85 m1llion/ Pie\�Ous year t 1,139 71 million)) Add· !nteres\ accrued on bonds Total investments carried at amortised cost (B) Designated as fair value through profit and loss Quoted Investments • Investments in mutual funds Foir value of long term mutual funds (Refer Note 7a) Unquoted Investments • Others• Ciqua! limi1ed !Holding 2.38% (Corresponding period_I_Pre\OUS year 2.38%)1 0.04 rrlhon {Conesponding period_I_Previous yem: 0 04 million) shnres of GBP 0.01 each, fully pmd up Less lmpai,ment ol non·currell! onquoted investmen1s A!tizon Systems Pnv.te Limited 3,766 equity shares {Corresponding pe11od_I_Previous yea1 3.766 equty shares) of� 10 each. fully paid up • Investments in preferred stock Hygenxlnc. 0 25 rrlhon (Correspondmg period_I_Previous year O 25 million) Preferred stock of SO 001 each fully paid up less· Impairment of non-current unquoted investrnenls Trunom1!nc. 0.28 million (Corresponding period_I_Previous year· 0 28 million) Preferred stock of SO 002 each. fully paid up Jocata Corporation 0.006 million (Corresponding period/ Previous year O 006 million) Preferred stock of S 0.001 each, fully paid up OpsOataStore Inc. 0 20 million (Corresponding period/ Previous year O 20 million) Preferred stock of$ 0 001 each, fully paid up Ampoo! Inc 0.55 million (Correspondmg period I Previous year : 0 55 million) Preferred stock of S 0.4583 each, fully paid up Cazena Inc 0.35 mi:hon (Corresponding penod I PrC\OUs year: Nil) Preferred stock of S 0.0001 each, fully paid up - Investments in Convertible Notes DxNow 1 (Coresponding perod_I_Previous year: 1) convertible note of USD 125,000 each, fully paid up less . Impairment of non.curent unquoted investments Ustyme 1 (Corresponding pcnod I Previous year: 1) convertible note of USD 250,000 each, fully paid up less: Impairment of non-current unquoted 1nvcstmcnts Akumina lnc 1 (Corresponding period I Previous year: 1) r.onvert1ble note of USD 146,429 each, fu!!y paid up Total Investments carried at Fair Value (C) Total Investments (Al+ (BJ+ (C) Aggregate amount of impairment in value of investments Aggregate amount of quoted investments Aggregate amount of unquoted Investments • Investments, where the Group docs not have join.con\fol Of sigrnf1cant influence includmg srtuations temporary, are classified as "investments 111 others"	0.05 (0.05) 0.05 (0.05) 0.05 (0.05)
	1,642 36 931 02 1,112 47
	1,500 88 1,500.88 14 40 (14 40) 1,479 58 1,479.58 13 02 (1302) 1,657.49 ~~·~~-� 13.49 (13.49)
	600 6.00 6.00 -�- •_.o_o s.oo 14 50 18 12 18.12 14.50 1812 144.96 13 07 13 03 16 33 16.29 16 33 16 29 1307 13 03 16 33 16.29
	213.82 75.13 61.90
	9.06 (9.06) 18.12 (18.12) 10.61 8.17 8.15 (8 17) (8.15) 16.33 16.29 (16.33) (16.29) 9.57 9.5
	10.61 9.57 9.54
	1,731.31 1,570.28 1,734.93
	3,460.35 56 13 3,229.92 28656 2,547.30 2,881.04 21.24 51.01 2,456.60 2.803.60 111 94 128 45 where such Joint-control Of s1gnif1cant mfluencc IS intended to be

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Notes forming part of condensed consolidated financial statements

7 a) Details of fair value of investment in long term Mutual Funds (Quoted)

	As at September 30, 2018 In� Million As at September 30, 2017 As at March 31, 2018 In� Million In� Million
ICICI Prudential Mutual Fund Kotak Mutual Fund HDFC Mutual Fund Aditya Birla Sun Life Mutual Fund UTI Mutual Fund SBI Mutual Fund Reliance Mutual Fund IDFC Mutual Fund DHFL Pramerica Mutual Fund DSP Mutual Fund	518.22 278.50 195.28 181.02 151.21 61.37 54.89 30.22 30.17 593.68 664.16 179.14 214.02 157.21 191.64 104.56 157.98 57.58 89.43 117.34 177.65 52.53 53.81 217.54 108.80
	1,500.88 1,479.58 1,657.49

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Notes forming part of condensed consolidated financial statements

1. Non-current financial assets : Loans (refer note 30)

8. Non-current financial assets : Loans (refer note 30)
		As at As at September 30, 2018 September 30, 2017 Inf Million Inf Million As at March 31, 2018 Inf Million
Carried at amortised cost Security deposits Unsecured, cormdered good Unserred, conS!deied doubtfu Less lmpa11ment of non-current loans loanloothers (Unsecurnd, consideredgoo) Loans Other loans and advances Inter corporate deposits Unsecwed. considered good Unsecured. considered doubtful less Impairment of non·current loans 9. Other non current financial assets		13964 13295 13849
		008
		158.00 133.03 142.73
		As at As at September 30, 2018 September 30, 2017 As at March 31, 2018
Non.curient bank balances (Refe1 note 15) Add lntewst accmed but not due on non·current bank deposits Non-current deposits with banks (Carried at amortised cost) Oeposrts vr.th fmanaal mst1tut10ns Add Interest accrued but not due on deposit \',1\h fmanaal 1nst1tut1ons Non-current deposits with financial institutions (Carried at amortised cost) 10. Deferred tax asseU liability (nel) •		30000 35 00
		25.40 317.41 37.43
		As at As at Septembr 30, 2018 September 30, 2017 Inf Million Inf" Million 239 59 217 40 65 58 11052 4 45 2611 Asal March 31, 2018 In ?Million 246 10 10863 11 52
Deferred tax liabilities Differences m book values and tax base values of bock of Property, Plant and Equipment and intangible assets Capital gains Others Deferre tax assets Provision for !eave encashment P1ov1s1on for !omJ service awards P1ov1sion for doubtful debts Prov11on for gratwty Differences in book values and tax base values of bock of Property, Plant and Equipment and mtang,be assets(overseas) Brought forward and currnnt pe11od /year losses Taxcrndrts Others Deferred tax liabilities after set off Deferred tax assets after set off
		309.62 354.03 366.25
		139 03 14416 101 82 12914 35 79 92 73 2 61 13899 19532 56 22 17 90 29383 9563 18859 2126 120.38 9693 41.81 11712 41 12 281.37 3912
		956.88 696.14 737.85
		217.40 647.26 559.51 270.41 642.01

' Deferred tax assets and deferred !ax hatxht1es have been offset whe1eve1 the Group has a legally enforceable ught to set off current tax assets against current tax hab1trt1es and where the deferred tax assets and deferred tax hab1t/Ues relate to mcome taxes leVJed by the same taxation authonty In all other cases the same have been separately disclosed 11. Ott�r non-current assets

	As al As at Asal September 30, 2018 September 30, 2017 March 31, 2018 InfMillion Inf Million Inf Million 0 30 27 00 78 74 56.33 64 57
Capital advances (Unsecured. considered good) Advances recoverable in cash or kmd or for value to be received
	78.74 56.63 91.57

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Notes forming part of condensed consolidated financial statements

12. Current financial assets: Investments

	As at September 30, 2018 In� Million As at September 30, 2017 In� Million As at March 31, 2018 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) Total carrying amount of investments Aggregate amount of quoted investments Aggregate amount of unquoted investments	7,382.85 7,382.85 4,810.64 4,810.64 5,916.31 5,916.31
	7,382.85 7,382.85 4,810.64 4,810.64 5,916.31 5,916.31

12 a) Details of fair value of current investment in mutual funds (Quoted)

As at September 30, 2018 In� Million As at September 30, 2017 In� Million As at March 31, 2018 In� Million	As at September 30, 2018 In� Million As at September 30, 2017 In� Million As at March 31, 2018 In� Million
UTI Mutual Fund Aditya Birla Sun Life Mutual Fund Axis Mutual Fund L&T Mutual Fund IDFC Mutual Fund ICICI Prudential Mutual Fund DHFL Pramerica Mutual Fund SBI Mutual Fund DSP Mutual Fund Kotak Mutual Fund HDFC Mutual Fund Tata Mutual Fund Sundaram Mutual Fund Reliance Mutual Fund	1,126.57 1.010.65 1,001.39 1.000.34 674.28 516.11 470.23 411.45 258.04 230.88 228.86 228.79 225.26 707.17 487.52 492.11 278.84 352.93 220.04 366.90 271.32 509.87 605.29 518.65 823.08 845.88 743.70 749.22 349.34 275.33 441.64 50.24 50.39 300.42 174.66 817.81 104.15 190.45
	7,382.85 4,810.64 5,916.31

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Notes forming part of condensed consolidated financial statements 13, Trade receivables (refer note 30)

	Asat September 30, 2018 In l Million As at As at September 30, 2017 March 31, 2018 In l Million Inf Million
Outstanding for a period exceeding six months from the date they are due for payment Unsecured, conside1ed good Unsecured, considered doubtful Less : Al!o;-nce for credit loss Others Unsecured, considered good Unsecured, considered doubtful Less : Al!ovrcmce for c1edit loss 14. Cash and cash equivalents (refer note 30)	0.98 117.58 11.78 23.12 265.60 146.97
	118.56 (117.58) 0.98 4,777.10 277.38 170.09 (265.60) (146.97) 11.78 23.12 4,826.50 4,824.28 6.66
	4,777.10 4,833.16 4,824.28 (6.66)
	4,777.10 4,778.08 4,826.50 4,824.28 4,838.26 4,847.40
	As at September 30, 2018 In l Million 0.25 5.33 927.77 20.20 127.13 1,080.68 As at As at September 30, 2017 March 31, 2018 Inf Million Inf Million 0.13 0.23 1,521.29 1,196.91 0.76 0.75 232.00 145.83 1,754.18 1,343.72
Cash and cash equivalents as presented in cash flow statement Cash in hand Cheques on hand Balances Wth banks On current accounts • On saving accounts On Exchange Earnei's Foreign Currency accounts

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·out of the cash and cash equivalent balance as at September 30, 2018, the Group can utilise� 2.98 million only tow-ards research and development activities specified in the loan I giant agreement. There we,e no such resliictions for utilisation of the cash and cash equivalent balance as at September 30, 2017 and Maich 31, 2018.

1. Other bank balances (refer note 30)

As at September 30, 2018 Inf Million As at As at September 30, 2017 March 31, 2018 lnfMillion Inf Million

On deposit account with original maturity more than twlve months • Add: Interest accrued but not due on deposits \'Alh banks Deposits v.ith banks (Carried at amortised cost) Less: Deposits Wth maturity more than twelve months f,om the balance sheet date disclosed under other non-current financial assets (refer note 9) Less: Interest accrued but not due on non-current deposits v.ith banks (refer note 9) Balances \°dlh banks On unpaid dividend accounts"

476.97 5.52 482.49 (24.99) (0.41) 457.09 2.31 459.40 574.57 940.47 107.68 130.11 682.25 1,070.58 (1.53) (1.53) (0.15) (0.21) 680.57 1,068.84 1.40 1.41 681.97 1,070.25

• Out of the balance, fixed deposits off 86.31 million (Corresponding period: f 62.24 million I Previous year � 63.78 rnil!ion) have been earmarked against bank guarantees availed by the Group

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

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Notes forming part of condensed consolidated financial statements 16. Current financial assets: Loans (refer note 30)

	As at September 30, 2018 Inf Million As at As at September 30, 2017 March 31, 2018 Inf Million Inf Million
Carried at amortised cost Loan to related parties {Unsecured, considered doubtful) Klisma e-Services Pnvate limited less: Impairment of current loans loan to others (Unsecured, considered good) LHS Solution lnc. Security deposits Unsecured, considr,red good 17. Other current financial assets {refer note 30)	27.43 27.43 (27.43) 27.43 27.43 27.43 27.43 (27.43) (27.43)
	8.05 8.05 8.05 As at September 30, 2018 Inf Million 7.34 6.63 7.34 6.63 11.59 6.63 As at As at September 30, 2017 March 31, 2018 Inf Million Inf Million
Fair value of derivatives designated and effective as hedging instruments Forard contracts receivable Advances to suppliers Unsecured, considered good Unsecured, considered doubtful Less: Impairment of current financial assets Deposit wth financial institutions (refer note 38) Add: Interest accrued but not due on deposit with financial institutions Deposits \Mth financial ins\1\utions (Carried at amorised cost) Unbilled revenue	0.81 (0.81} 1,180.00 52.24 145.15 42.75 0.81 0.81 (0.81} (0.81} 140.35 995.35 4.74 20.65
	1,232.24 2,256.73 145.09 1,016.00 1,751.14 1,699.50
	3,488.97 As at September 30, 2018 Inf Million 2,041.38 2,758.25 As at As at September 30, 2017 March 31, 2018 Inf Million Inf Million
18. Other current assets
Advances to suppliers (Unsecured, considered good) Advances recoverable in cash or kind or for value lo be received Other advances (Unsecured, considered good) VAT receivable (net) Service tax and GST receivable (net) (Refer note 36)	712.94 118.86 1,141.71 1,260.57 538.40 561.68 52.13 74.42 807.78 927.31 859.91 1,001.73
	1,973.51 1,398.31 1,563.41

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Notes forming part of condensed consolidated financial statements

1. Non-current financial llabllitles: Borrowings {refer note 30)

Term loans Indian rupee loan from others Interest accrued but not due on term loans less: Current maturity of long-term borrowings transferred to other current financial liabHities (Refer note 22) Less: Cunent maturity of interest accrued but not due on term loan transfeired to other current financial liab!l1ties (Refer note 22)	Aat September 30, 2018 17.91 0.01 17.92 (2 73) (0.01) A at A at September 30, 2017 March 31, 2018 22.49 21.13 0.73 0.78 23.22 21.91 (2.13) (4 58) (0.29) (0.78)

The term loans f1om Government departments have the following terms and condil1ons:

Loan I - amounting to:?' 6 82 m1lllon (Corresponding period� 9 55 mi1l1on/ Previous year� 8 19 m1lhon) with 1n!erest payable@ 2% per annum guaranteed by a bank guarantee by the Company and 1epayable In ten equal semi annual installments over o pefiod of five years commencing from March 2016. Loan H- amounting to, 11 09 milllon (Corresponding period l! 12 94 m1l!ion/ Previous year, 12 94 m1lllon) with Interest payable@ 3% pe1 annum repayable 111 ten equal annual installments over a period of ten years commencing from September 2015

1. Non current liabilities : Provisions

			A at September 30, 2018 Aat A at September 30, 2017 March 31, 2018
-G · L 21. Trade p	ratwty ong service awards ayables (refer note 30)		46.08 15.74 16.38
Trade paya 22. Other c	bles for goods and se1vices urrent financial liabilities {refer note 30		Aat September 30, 2018 In, Million A at September 30, 2018 Inf Million 39.20 2 73 0.01 385.56 2.31 0.74 544.59 A at As at September 30, 2017 March 31, 2018 In, Million tn, Million A at A at September 30, 2017 March 31, 2018 Inf Million Inf Million 19.13 32.36 2.73 4.58 0.29 0 78 407.67 357.02 1.40 1.41 0.92 0.18 54.92
		)
Capital cred Current mat Current mat Accrued em Unpaid divid Other habillt Payable to s Fair value o Forwar	itors urity of long•term bo1row1ngs (refer note urity of interest on tong-term borrowings ( ployee liab11i1ies end' ies elling shareholders f derivatives designated and effective d contracts payable	19) refer note 19) as hedging instruments
			975.14 487.06 396.33

• Unpaid diV!dend is credited to Investor Education and Protection Fund as and v.then due

23.0ther current liabilities

23.0ther current liabilities
	A at	A at	A at
	September 30, 2018	September 30, 2017	March 31, 2018
	In, Million	In, Million	In, Million
Unearned revenue	869.46	689.26	921.10
Advance from customers	25.04	13.87	25.38
Other payables
- Statutory llab1litles	353.76	200.87	251.49
-Other liabiltlles'

• Includes grant of l! 4 50 m11!ion received during the half year ended September 30, 2018, from 810\echnology Industry Research Assistance Council (B!RAC) putsuant to an agreement dated March 12, 2018 The amount together wrth add1t1onal grants to be received over 3 years from B!RAC and Group's share as prescribed 1n the agreement is to be spent as per the said agreement

1. Current liabilities : Provisions

	A at A at A at September 30, 2018 September 30, 2017 March 31, 2018 Inf Million In, Million Inf Million
Provision for employee benefits · Gratuity - leave encashment · Long servce awards · Other employee benefrts	0 78 (39 76) (44.77) 533.79 466.16 468.73 28.65 28.47 22.31

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Notes forming part of condensed consolidated financial statements

1. Revenue from operations (net)

	For the quarter ended September 30, 2018 Inf Million For the half year ended September 30, 201 B Inf Million September 30, 2017 Inf Million For the year ended March 31, 2016
Software serices Software licenses	8,092.94 15,767.14 14,411.52 481.15
26. Other income
	For the quarter ended September 30, 2018 September 30, 2017 Inf Million Inf Million For the half year ended September 30, 2018 September 30, 2017 Inf Million Inf Million For the year ended March 31, 2018 Inf Million
Interest income On financial assets carried at amortised cost On others Foreign exchange gain (net) Profit on sale of fixed assets (net) Dividend income from investments Proft on sale of investments (net} Net gain/(!oss} arising on financial assets designated as at FVPL Excess provision in respect of earlier period / years written back Advances written back Miscellaneous income	5.80 11.01 56.25 24.44 35.67 202.69 1.17 1.08 43.17 41.32 61.73 0.58 14.68 38.17 1.26 (0.21) 3.22 20.35 23.11 112.23 48.07 56.30 387.14 1.51 1.13 83.88 87.38 213.57 129.53 (115.69) (15.12) 20.07 (0.21) 23.75 47.87 113.67 586.31 2.40 171.25 186.84 (18.92) 18.19 23.76

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27. Personnel expenses

	For the quarter ended September 30, 2018 September 30, 2017 Inf Million Inf Million For the half year ended September 30, 2018 September 30, 2017 Inf Million Inf Million For the year ended March 31, 2018 Inf Million
27.1 Employee benefits expense Salaries, wages and bonus Contribution to provident and other funds Gratuity expenses Defined contribution to other funds Staf welfare and benefits Employee stock compensation expenses 27 .2 Cost of professionals	4,549.56 4,419.18 96.46 89.18 37.67 44.23 51.96 12.09 126.71 103.45 877.05 809.27 8,860.25 8,535.06 186.58 178.71 79.68 82.09 102.92 39.59 251.30 205.38 1,721.73 1,538.40 17,190.37 346.56 167.78 158.08 449.87 3,180.63
	5,739.41 5,477.40 11,202.46 10,563.03 21,497.09

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Notes forming part of condensed consolidated financial statements

1. Other expenses

Travelling and conveyance Electricity expenses (net) Internet link expenses Communication expenses Recruitment expenses Training and seminars Royally expenses Purchase of software licenses and support expenses Bad debts Provision for doubtful receivables/ (provision for doubtful receivables written back) (net) Rent Insurance Rates and taxes Legal and professional fees Repairs and maintenance - Plant and Machinery - Buildings - Others Selling and marketmg expenses Advertisement, conference and sponsorship fees Discount allowed Computer consumables Auditors' remuneration Donations Books, memberships, subscriptions Directors' sitting fees Directors' commission Impairment of non current investments Miscellaneous expenses		For the quarter ended September30, 2018 September 30,2017 Int Million In { Million 242.38 183.39 27.61 20.58 18.95 13.22 27.23 33.23 20.29 19.49 5.59 3.14 13.45 23.95 320.03 232.65 30.35 1.54 (23.73) 4.62 119.15 118.73 6.35 6.87 12.91 35.08 159.00 81.00 26.02 26.83 7.44 5.80 4.44 3.98 (4.98) 22.35 28.58 13.87 26.70 12.74 1.41 0.79 3.58 3.44 18.71 17. 18 22.21 17.28 1.02 1.17 3.61 2.40 16.10 61.63 55.88 For the half year ended For the year ended September30, 2018 September30, 2017 March 31, 2018 In { Million Int Million Inf Million 505.77 448.50 867.92 58.Q3 51.13 104.49 39.50 31.25 66.46 53.14 71.44 119.86 41.20 49.43 83.43 13.02 7.28 24.25 28.23 34.36 60.46 861.71 494.56 933.39 70.28 40.22 183.97 (26.34) (22.92) (151.38) 237.47 226.42 448.52 11.26 13.45 24.05 29.64 66.28 115.42 319.72 217.08 500.35 58.68 56.11 116.18 17.84 13.15 27.89 11.21 9.57 20.77 28.81 22.35 36.09 44.76 36.41 116.51 39.76 24.52 11.78 3.83 2.20 7.67 7.99 6.94 14.62 36.69 38.19 78.10 39.18 34.37 73.27 2.60 2.25 3.90 7.01 4.37 9.74 16.10 26.96 118.11 113.24 228.01
		1,179.93 977.30 2,659.10 2,108.25 4,152.68

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Notes forming part of condensed consolidated financial statements 29. Earnings per share

For the quarter ended September 30, 2018 September 30, 2017 For the half year ended September 30, 2018 September 30, 2017 For the year ended March 31, 2018	For the quarter ended September 30, 2018 September 30, 2017 For the half year ended September 30, 2018 September 30, 2017 For the year ended March 31, 2018
Numerator for Basic and Diluted EPS Net Profit after tax (In_t_Million) Denominator for Basic EPS Weighted average number of equity shares Denominator for Diluted EPS (A) (B) Number of equity shares (C) Basic Earnings per share of face value off 10 each (Inf) (A8) Diluted Earnings per share of face value off 10 each (Inf) (AC) 881.41 826.23 80,000,000 80,000,000 80,000,000 80,000,000 11.02 10.33 11.02 10.33 1,754.89 1,577.12 80,000,000 80,000,000 80,000,000 80,000,000 21.94 19.71 21.94 19.71 3,230.88 80,000,000 80,000,000 40.39 40.39
	For the quarer ended September 30, 2018 September 30, 2017 80,000,000 80,000,000 For the half year ended September 30, 2018 September 30, 2017 80,000,000 80,000,000 For the year ended March 31, 2018 80,000,000
Number of shares considered as basic weighted average shares outstanding Number of shares considered as weighted average shares and potential shares outstanding
	80,000,000 80,000,000 80,000,000 80,000,000 80,000,000

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Notes forming part of condensed consolidated financial statements

30. Financial assets and liabilities

The carrying values and fair values of financial instruments by categories are as follows:

		"'' ....... v ..	"'' ....... v ..	"'' ....... v ..	"'' ....... v ..	"'' ....... v ..	"'' ....... v ..
Financial assets/ financial liabilities	Basis of measurement	As at September 30, 2018		As at September 30, 2017		As at March 31, 2018			Fair value hierarchy
		Carrvina value	Fair value	Carrvina value	Fair value	Carrinq value	Fair value
Assets: Investments in associates Investments in equity instruments and preferred stock Investments in bonds* Investments in mutual funds Loans Deposit with banks and financial institutions Cash and cash equivalents (including unpaid dividend) Trade receivables (net) Unbilled revenue Forward contracts receivable	Equity accounting Fair value Amortised cost Fair value Amortised cost Amortised cost Amortised cost Amortised cost Amortised cost Fair value	230.43 1.729.04 8.883.73 166.05 1.714.73 1.082.99 4.778.08 2.256.73	230.43 1.695.36 8.883.73 166.05 1,714.73 1,082.99 4,778.08 2,256.73	90.70 977.02 6.290.22 144.62 1,143.07 1,755.58 4.838.28 1.751.14 145.15	90.70 994.85 6.290.22 144.62 1.143.07 1.755.58 4.838.28 1.751.14 145.15	77.44 1.146.11 7.573.80 149.36 2.122.27 1.345.13 4,847.40 1.699.50 42.75	- 77.4 1.139.7 7.573.80 149.36 2,122.27 1.345.13 4.847.40 1.699.50 42.7	4 1 5	Level 3 Level 1 Level 2
Total		20,841.78	20,808.10	17,135.78	17,153.61	19,003.76	18,997.36
Liabilities: Borrowings (including accrued interest) Trade payables Other financial liabilities (excluding borrowings) Forward contractspayable	Amorised cost Amortised cost Amortised cost Fair value	17.92 1.917.52 427.81 544.59	17.92 1.917.52 427.81 544.59	23.22 1.499.03 484.04	23.22 1.499.03 484.04	21.91 1,673.08 390.97	21.91 1,673.08 390.97 -		Level 2
Total		2,907.84	2,907.84	2,006.29	2,006.29	2,085.96	2,085.96

• Fair value includes interest accrued.

Fair value hierarchy:

The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable and consists of the following three levels:

Level 1 - Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 - Inputs are other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3 - Inputs are not based on observable market data (unobservable inputs). Fair values are determined in whole or in part using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data.

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IMffltlft ~~Notes forming part of condensed~~ ffi !ffiiltffi consolidated flnanclal i.talements

31. Segment lnfonnatlon

Operating segments are component!. ot an cnterpnse lor .,. heh d,sc.re!e !mano.a! tnfom1ahon � ava,lat�e th.it rs evaluated regularly by the d11ef operatmg decision maker, in deciding how to a&ocate resources and assessing performance. lhe Group's chief opernl:ng decismn ma ker ,s the CEO and Managing 011ec!Of

Tiie Group reorgarnsed itself tn\o three bus1r1ess units from Aprd 1, 2018, v,hch form the operaling segments for segment reporting TI'l<!opcraling segmcn!sare

a. Technology Services b.Alfance c Ac.celente(P1oducts)

Accord�lgly, the conespond1ng figuies for the earlier reporting pcnods are rcsla!ed HI knc >Wh the above rco1gan,zat1on

Accord�lgly, the cnespond1ng figuies for the earlier reporting pcnods are rcsla!ed HI knc >Wh the above rco1gan,zat1on	Accord�lgly, the cnespond1ng figuies for the earlier reporting pcnods are rcsla!ed HI knc >Wh the above rco1gan,zat1on	Accord�lgly, the cnespond1ng figuies for the earlier reporting pcnods are rcsla!ed HI knc >Wh the above rco1gan,zat1on	Accord�lgly, the cnespond1ng figuies for the earlier reporting pcnods are rcsla!ed HI knc >Wh the above rco1gan,zat1on	Accord�lgly, the cnespond1ng figuies for the earlier reporting pcnods are rcsla!ed HI knc >Wh the above rco1gan,zat1on	Accord�lgly, the cnespond1ng figuies for the earlier reporting pcnods are rcsla!ed HI knc >Wh the above rco1gan,zat1on
lnfMiHIOn
Particulars		Technology Services	Alliance	Accelerite (Products)	Total
Revenue ldent,fiah!eexense Segmentolresut > + UnaHocblc cxenscs Operahng ncome 01hc1 income (ncl of exenses) P1oft beforeta>:es fax expense Profit afte11ax	Qua1terended Quarlerended Ha!fYear<>nded lfa!fYear ended Year ended OWrtereled Quarter ended Hat!Year ended Half Year ended Year ended Sep-30·7018 Sep-30·2017 Sep-30-2018 Sep·30·2017 Mar-31·2018 Sep·30·2018 Sep·30-/017 Sep·30·2018 Sep-30-2017 Mnr-31-2018 Ouaite1 ended Sep·30·2018 Quarter ended Sep·30·2017 Hall Year coded Sep,30·?018 Half Year ended Sep-30·2017 y�"�==""= � �" -J�="�"� l Quarter ended Quarter ended Ha!IYearended Hall Year ended Year ended Quarter ended Ouarte1ended lfalfYear ended Half Year ended Yeaiended Qua,tcr ended Qurtcr ended HallYcarendt' Half Year ended Year ended Quarter ended Quarter ended Hal1Yearended Ha!fYearended Yea1ended Quarter ended Uuarter ended Half Year ended Ha1fYe,1rended Year ended Quartcr el'led Year ended Quarter ended l!a!fYeMende<.I Yearertded Sep·30·2018 Sep.30.2017 Sep·30·2018 Sep·30·2017 Mar-31-2018 Sep·30·2018 Sep<J0.2017 Sep·30,2018 Sep·30·2017 Mar·31·2018 Scp-30-7018 Sep·30·2017 Sep·30·2018 Sep 30·2017 t.far-31·2018 Sep-30·2018 Sep·30-?017 Sep<l0-2018 Sep-30-2017 Mar·31·2018 Sep·30·2018 Sep·30·2017 Sep·30·2016 Sep·30·2017 Mar-31-2018 Sep·30·2018 Sep·30·2018 Sep.:so.2011 Scp·30·2017 Mar-31·2018	5,436 54 4,915 64 10,679 71 9,466.95 19,371.11 3.4018. 3.09784 6.64645 5.98575 11,96293 ?.034.70 1,823 00 4.033 26 3,481.20 - ''='�'·'='-	7.46694 2,081 76 5.15762 4,205.64 8.725 06 1,64044 1,424 67 3,47075 2.849 62 6,025.17 876 50 657 09 1,686 87 U56 02 �· =�"-	452.09 614.92 861.05 1.220.06 2,240.86 21029 33169 45698 68273 1,186.57 241 60 283 03 404 07 537.35 - �'=' �'="'+	8,355.57 7,612.52 16,69838 14,692.67 30,337.03 5,252 57 4,849.40 10.57-.18 9,518 10 19,174.67 3,103.00 2,763.12 6.124 20 5,374.57 '�'�"�'=°'- 2,06642 1,984.90 4.068 12 3.94486 8,06076 1,036.58 77822 2.0:!6.08 1,42971 3,101.60 23221 336.34 41896 704.25 1,191 01 1,26879 1,11456 2,455.04 2.13396 4,292.61 38738 288.33 70015 556.84 1,061.73 681.41 876 23 1,75489 1,577.12 3,230.88

Note Co�ts related to research and development am u1c�ided under tdent1!,ah!e e�Jenscs for !he purpose of segment reportmg

(lofM1Uion)	(lofM1Uion)	(lofM1Uion)	(lofM1Uion)	(lofM1Uion)	(lofM1Uion)
Particulars f + Segmentaltrade rece,vablcs Unallocated assets	- Acnt As at Asa< Sep·30·2016 Sep<l0·2017 Mar-31·2018 Sep·30·2018 Sep·30·2017 Mar-31-2018	Technology Services 1 3,42615 3,641.26 3,675.96	Alliance - 1,10009 66779 74027	Acee le rite {Products) +- - 2!124 529 21 43117	Total -- 4.778.08 4.838.26 4,847.40 24,019.19 20.270 22 21.86073

Segregation of assets {other than trade ieceivables), liab�rties. depieciatwn and amort12;,tmn and other non·cash emenses n\to vanous re11ortable segments lmve not been prcser.led as the asse!s are used interchangeably between segments and !he Group ,s of the view thal ii is no! practical IO reasonably aliOc.:i!e the O!her assets, fiabijitics and olhcr 11on·cash e;penses tou1d,v.(!ualsegmcnts andan ad·hoc aH(){'.ilhonw,1l11o!be me;irn glul

Geographical Information

The fo!lowtng table shows the d1slnbut10n of the Group's conso�da!ed sales by geog1aphical ma1ket 1egardless of from where the serw::es were rendered

Geographical Information The fo!lwtng table shows the d1slnbu1n of the Group's cons�da!ed sales by geog1aphical ma1ket 1egardless of from where th serw:es were renered	Geographical Information The fo!lwtng table shows the d1slnbu1n of the Group's cons�da!ed sales by geog1aphical ma1ket 1egardless of from where th serw:es were renered	Geographical Information The fo!lwtng table shows the d1slnbu1n of the Group's cons�da!ed sales by geog1aphical ma1ket 1egardless of from where th serw:es were renered	Geographical Information The fo!lwtng table shows the d1slnbu1n of the Group's cons�da!ed sales by geog1aphical ma1ket 1egardless of from where th serw:es were renered	Geographical Information The fo!lwtng table shows the d1slnbu1n of the Group's cons�da!ed sales by geog1aphical ma1ket 1egardless of from where th serw:es were renered	Geographical Information The fo!lwtng table shows the d1slnbu1n of the Group's cons�da!ed sales by geog1aphical ma1ket 1egardless of from where th serw:es were renered
lnfM1Hion
Pariculars		India	North America	Res! of the World	Total
Revcre	Quarter ended Quarter ended Hall Year ended Half Year ended Year ended Sep·30·2018 Sep·30·?017 Sep.30.2018 Sep·30-2017 MM·31·20!8	609.97 42898 1,118.52 8!467 1,910.67	6.89531 6,344 63 1:1,f7.61 12.!71 45 25.336.90	85029 83891 2,03225 1,46655 3.069 46	8,35557 7.61252 16,69838 14,89267 30.337.03
TI' revenue from a smgle cuslomer in excess of ten pe1cen\ of \olal revenue of Lhe Group ,�� 2,140 72 m.tl,on for lhe quarter ended Septernher 30. 2018 {correspond:ng

pellOd , 1.975 18 mtll10n). Rs 4.129 67 m1�ion ror the hall ye�r ended September 30. 2018 (conespond,r.J penod , 4,005 82 million}. (previous year . t 7,652 92 m1R10n)

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Notes forming part of condensed consolidated financial statements

32. On July 02, 2015, the Company, through its wholly owned subsidiary Persistent Systems Inc., acquired the entire equity capital of US based Akshat Corporation (d.b.a. RGen Solutions in USA). In addition to the upfront purchase consideration, the stock purchase agreement for additional consideration, contingent upon certain conditions being met in future years. The additional contingent consideration payable to the selling shareholders is subject to a maximum amount of USO 3.75 million. The fair value of the contingent consideration is estimated to be Nil as on the date of acquisition. The contingent consideration would be recorded, as and when the contingency is resolved and the consideration is payable.

33. Persistent Systems Inc. (a wholly owned subsidiary of Persistent Systems Limited) acquired Digital Content Management Solution product from the US based Akumina Inc. on November 9, 2015. In addition to the upfront purchase consideration, the asset purchase agreement provides for additional consideration, contingent upon certain conditions being met in future years. The additional contingent consideration payable to Akumina Inc., is subject to maximum amount of USO 5.00 million. The fair value of the contingent consideration is estimated to be Nil as on the date of acquisition. The contingent consideration would be recorded, as and when the contingency is resolved and the consideration is payable.

34. Persistent Telecom Solutions Inc. (a wholly owned subsidiary of Persistent Systems Inc.) acquired a cloud platform open source software from Citrix on February 28, 2016. In addition to the upfront purchase consideration, the asset purchase agreement provides for additional consideration, contingent upon certain conditions being met in future years. The fair value of the contingent consideration is estimated to be Nil as on the date of acquisition. The contingent consideration would be recorded, as and when the contingency is resolved and the consideration is payable.

35.

• a) On August 24, 2018, Persistent Systems Inc. (a wholly owned subsidiary of Persistent Systems Limited) acquired the entire equity capital of a USA based Company Herald technologies Inc. (referred to as 'Herald'). The Company acquired 100% voting equity interest in Herald through share purchase agreement.

The acquisition would strengthen Persistent's IP led offerings in the healthcare domain and create a number of cross­ sell opportunities

• b) The amount of consideration is �148.50 million which is paid/ payable in cash.

The fair value of assets acquired and liabilities assumed as on the date of acquisition are as follows:

� in Million	� in Million
Particulars	Total
Current Assets
Cash and & cash equivalents	0.35
Non-current assets
Propery, Plant and Equipment	0.08
Intangible assets under development	148.67
Current liabilities
Trade and other payables -----	0.35
Net assets ---·-	148.75 --

The gain on bargain purchase arising on acquisition is � 0.25 million.

• c) Net cash outflow on acquisition of subsidiaries

Net cash outflow on acquisition of subsidiaries
Particulars		Amount in � million
Consideration paid/ payable in cash		148.50
Less: cash and cash equivalent balances acquired		(0.35)
----- ---- - -	~~-~~ ~~. �·-~~ - ------�-

• d) Revenue of Herald is Nil. The loss included is� 12.64.

Had the business combination been effected on April 1, 2018, there would have been no change in the revenue and the profit after tax for the half year ended September 30, 2018 for the Group.

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·
,Persistent Systems Limited .
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Notes forming part of condensed consolidated financial statements

36. Persistent Systems Limited ("the Holding Company") had received a show cause notice from Commissioner of Service Tax on December 19, 2016 for non-payment of service tax of f 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 Holding Company to its overseas customers for the period 201112 to 2014-15.

Post representations made by the Holding 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 z 165.51 million based on the period of limitation and as a result of that, the said demand now covers financial year 2014-15. The Holding Company has filed an appeal against the order passed by Learned Principal Commissioner of Service Tax, Pune with the Hon'ble Central Excise and Service Tax Appellate Tribunal (CESTAT) on September 23, 2017.

The Holding 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 financial statements. If the appeal filed as mentioned above results in a demand, there will be no impact on the profitability as the Holding Company will be eligible to claim credit/refund for the amount paid.

The GST department has 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 has acknowledged the ground of revenue neutrality, the said appeal mainly questions non-application of extended period of limitation. The Holding Company has 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 Holding Company has deposited, an amount of z 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.

As on September 30, 2018, the pending litigations in respect of direct taxes amount to f 227 .12 million and in respect of indirect taxes amount to z 30.40 million (excluding the show cause received from Commissioner of Service Tax on May 29, 2017 of z 165.51 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.

37. Persistent Systems Inc., subsidiary of Persistent Systems Limited, has given a guarantee of €10.00 million to Tech Data Europe GmbH & its Affiliates towards trade payable of Persistent Systems Inc & its Affiliates.

38. As of September 30, 2018, Persistent Systems Limited ("the Holding Company") had deposits of Rs. 430.00 million with the financial institutions (refer note 17) viz. Infrastructure Leasing & Financial Services Ltd. (IL&FS) and IL&FS Financial Services Ltd. (referred to as "IL&FS Group"). These are due for maturity from January 2019 to June 2019. In August 2018, credit rating agency - ICRA, has significantly downgraded the IL& FS Group's rating and subsequently it is noted that the Government of India and various regulators have intervened in the matter. As of September 30, 2018, there have been no defaults in payment of interest on the aforesaid deposits. Accordingly, the management of the Holding Company believes that there is no immediate need to recognize any impairment on the above deposits as of September 30, 2018. The Holding Company will continue to monitor the developments in this matter for the purpose of determining the financial reporting impact, if any.

1. Previous period's/ year's figures have been regrouped where necessary to conform to current period's classification for segment disclosure.

2. The financial statements are presented in z million and decimal thereof except for per share information or as otherwise stated.

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LLP

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Persistent Systems Limited , · CONDENSED BALANCE SHEET AS AT SEPTEMBER 30, 2018	Persistent Systems Limited , · CONDENSED BALANCE SHEET AS AT SEPTEMBER 30, 2018
	Notes	As at As at September 30, 2018 September 30, 2017 In t Million In f Million As at March 31, 2018 Inf Million
ASSETS Non-cur Property, Capital w Other Int Intangibl Financial - Inve - Loa -Othe Deferred Other no Current Financial - Inve - Tra - Cas - Oth - Loa - Oth Other cur TOTAL EQUITY EQUITY Equity sh Other eq LIABILIT Non- cv, Financ:a! - E>rr Prevision Deferred Current l Finarscial - Trad enter Previ - Oth Other cur Provision Current t TOTAL Surr.m:ry	rent assets Plant and Equipment ork-in-progress angible assets e assets under development assets stments ns r non current financial assets tax assets (net) n-current assets assets assets stments de receivables h and cash equivalents er bank balances ns er current financial assets rent assets AND LIABILITIES are capital uity IES nnt liabilities liabilities owings s tax liabilities (net) iabilities liabilities e payables [(dues of micro and small prises Nil (Corresponding period/ ous year: N!l)J er financial liabilities rent liabilities s ax liabilities (net) of significant accounting policies 5.1 5.2 10 11 12 13 14 15 16 17 18 19 9 20 21 22 23	2,198.64 3.07 116.06 25.12 2,383.36 14.15 161.25 0 67 2,323.88 7.32 117.48 7 44
		2,342.89 5,931.17 830.60 25.40 246.71 78.74 9,455.51 2,559.43 5,157.85 1,094.61 317.41 54.10 9,183.40 2,456.12 5,504.85 945.81 37.43 31.68 64.00 9,039.89
		7,382.85 3,052.74 265.90 284.60 5.96 2,903.23 1,656.64 15,551.92 4,810.64 4,261.68 465.55 674.47 3.87 990.46 1,264.34 12,471.01 5,916.31 3,425.07 30�;.27 876.62 4.47 1,847 70 1,374.62 13,750.06
		BOO.OD 20,968.17 800.00 18,575.31 800.00 19,732.04
		21,768.17 19,375.31 20,532.04
		15.18 135.73 20.20 145.75 9.69 16.55 143.37
		150.91 175.64 159.92
		1,165.65 667.25 714.07 471.29 70.09 867.22 272.17 449.07 421.61 93.39 716 73 290.86 562.83 428.03 99.54
		3,088.35 2,103.46 2,097.99
		25,007.43 21,654.41 22,789.95

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The accompanying notes are an integral part of the condensed financial statements.

As per our report of even date

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For Deloitte Haskins & Sells LLP
ICAI Firm registration no. 117366W/W-100018
'"'"'"' k,,.,,,�
M n _r 11p no. 038019
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Place. Pune Date : October 21, 2018

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For and on behalf of the Board of Directors of
Persistent Systems Limited
Dr. Anand Deshpande
Chairman and Managing Director
Sunil Sapre �r�� Ami tre
Executive D1rectrn and Company Secretary
Chief Financial Officer
Place: Pune
Date October 21, 2018
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Persistent Systems Limited
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CONDENSED STATEMENT OF PROFIT AND LOSS FOR THE QUARTER AND HALF YEAR ENDED SEPTEMBER 30, 2018

Notes		For the quarter ended September 30, 2018 September 30, 2017 Inf Million Inf Million	For the half year ended September 30, 2018 September 30, 2017 Inf Million Inf Million For the year ended March 31, 2018 Inf Million
Income Revenue from operations (net) 24 Other income 25 Total income (A) Expenses Employee benefits expense 26.1 Cost of professionals 26.2 Finance costs Depreciation and amortization expense 5.3 Other expenses 27 Total expenses (8) Profit before tax (AMB) Tax expense Current tax Tax credit in respect of earlier years Deferred tax charge I (credit) Total tax expense Net profit for the period / year (C) Other comprehensive income Items thatwillnot be reclassified to profit and loss (D) - Remeasurements of the defined benefit liabilities / (asset) (net of tax) Items that may be reclassified to profit and loss (E) - Effective portion of cash now hedge (net of tax) Total other comprehensive income for the period/ year (D) + (E) Total comprehensive income for the period / year (C) + (D) + (E) Earings per equity share 28 [Nominal value of sharef10(Corresponding period/ previous year:f10)] Basic (In') Diluted (Inf) Summaryof significant accounting policies 3		4,936.30 4,374.91 369.39 365.50	9,556.21 8,647.35 564.21 741.45 17,327.49 1,276.82
		5,305.69 4,740.41	10,120.42 9,388.80 18,604.31
		2,318.34 2,239.02 556.74 566.98 0.16 0.16 113.89 134.12 1,010.33 640. 19	4,579.13 4,384.49 1,062.92 1,159.38 0.27 0.33 231.08 286.81 1,735.39 1,367.06 8,740.66 2,133.03 0.62 537.81 2,640.03
		3,999.46 3,580.47 1,306.23 1,159.94 405.70 330.73 3.71 !34.89)	7,608.79 7,198.07 2,511.63 2,190.73 746.50 592.36 (54.94) (16 87) 14,052.15 4,552.16 1,175.90 (3.99) (40 92)
		409.41 295.84	691.56 575.49 1,130.99
		(12.56) 12.93	(25.47) 60.09 104.97
		(12.56) 12.93	(25.47) 60.09 104.97
		(139. 16) (92.32)	(298.29) (159.10) (191.81)
		(139.16) (92.32)	(298.29) (159.10) (191.81)
		(151.72) (79.39)	(323.76) (99.01) (86.84)
		745.10 784.71 11.21 10.80 11.21 10.80	1,496.31 1,516.23 22.75 20.19 22.75 20.19 3,334.33 42.76 42 76

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The accompanying notes are an integral part of the condensed financial statements

As per our report of even date

For Deloitte Haskins & Sells LLP

!CAI Firm registration no. 117366W/W-100018 Chartered Accountants

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Place: Pune Date : October 21, 2018

For and on behalf of the Board of Directors of Persistent Systems Limited

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�
Or. Anand Deshpande
Chairman and Managing Director Director
/ l
//
Sunil Sapre Amit Atre
Executive Director and Compaz,. Secretary
Chief Financial Officer
Place: Pune
Date October 21, 2018
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Persistent Systems Limited
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CASH FLOW STATEMENT FOR THE HALF YEAR ENDED SEPTEMBER 30, 2018

	Cash flows from operating activities Profit before tax Adjustments for· Interest income Finance cost Dividend income Depreciation and amortization expense Amortization of lease premium Unrealised exchange loss/ (gain) (net) Exchange (gain) /loss on derivative contracts Exchange (gain) / loss on translation of foreign currency cash and cash equivalents Donations in kind Bad debts Provision for doubtful debts {net)/ (Provision for doubtful debts witten back) (net) Employee stock compensation expenses Remeasurements of the defined benefit liabilities/ (asset) (before tax effects) Advances vitten back (Gain) / loss on fair valuation of assets designated as at FVTPL (Profit) on sale of investments (net) (Profit) on sale of fixed assets (net) Operating profit before working capital changes Movements in working capital (Increase)/ Decrease in non·current and current loans (Increase)/ Decrease in other non current assets (Increase)/ Decrease in other current financial assets (Increase)/ Decrease in other current assets (Increase)/ Decrease in trade receivables Increase / (Decrease) in trade payables and current liabilities Increase / (Decrease) in provisions Operating profit after working capital changes Direct taxes paid (net of refunds) Net cash generated from operating activities Cash flows from investing activities Payment towards capital expenditure (including intangible assets) Proceeds from sale of fixed assets Purchase of bonds Investments in mutual funds Proceeds from sale/ maturity of mutual funds Investments in bank deposits having original maturity over three months Maturity of bank deposits having original maturity over three months (including Investments in deposit Vth financial institutions Maturity of deposit with financial institutions Inter corporate deposits (made) / refunded Interest received Dividend received Net cash generated from / (used in) investing activities Cash flows from financing activities (Repayment of) long term borrowings Specific project related grant received Dividend paid Tax on dividend paid Interest paid Net cash generated from / (used in) financing activities (A) (B)	For the half year ended For the year ended September 30, 2018 September 30, 2017 March 31, 2018 Int Million Int Million _Int_Million 2,511.63 2,190.73 4,552.16 (140.36) (84.43) (191.60) 0.27 0.33 0.62 (295.38) (111.13) (259.73) 231.08 286.81 537.81 0.29 0.29 0.58 (46.28) (165.30) (177.50) 128.96 24.35 76.73 8.97 (56.48) (111.75) 0.16 0.16 23.55 36.19 157.62 (13.84) (37.20) (146.42) 2.23 2.23 (37.83) 91.90 146.57 (17.56) (17.56) 115.69 15.12 18.92 (213.57) (129.53) (186.84) (1.28) (1.13) (2.47) 2,271.90 2,045.35 4,399.53 (17.46) 1.24 0.70 (14.74) 6.72 (3 18) (882.04) (67.85) (156.58) (282.02) (743.13) (853.41) 403.30 673.29 1,477.87 431.88 (60.82) (92.85) 35.62 (96.37) (92.3:l) 1,946.44 1,758.43 4,679.75 (763.59) (536.49) (1,119.68) 1,182.85 1,221.94 3,560.07 (126.15) (97.73) (232.81) 1.28 1.25 2.94 (529.89) (413.98) (595.43) (11,581.81) (6,243.54) (15,502.22) 10,369.76 6,261.66 14,290.26 (747.80) (17.73) (225.12) 1,192.48 14.85 42.26 (300.00) (5.35) (595.35) 150.35 133.64 (616.48) (429.37) 189.45 36.43 124.91 295.38 111.13 259.73 (953.31) (969.49) (2,860.20) (3.22) (3.22) (4.58) 4.50 (239.10) (239.80) (799.79) (20.18) (48.86) (150.23) (1.04) (1.13) (1.37) (259.04) (293.01) (955.97)

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CASH FLOW STATEMENT FOR THE HALF YEAR ENOED SEPTEMBER 30 2018

Persistent Systems Limited CASH FLOW STATEMENT FOR THE HALF YEAR ENOED SEPTEMBER 30 2018
Net (decrease)/ increase in cash and cash equivalents (A+ 8 + C) Cash and cash equivalents at the beginning of the period/ year Effect of exchange differences on translation of foreign currency cash and cash equivalents Cash and cash equivalents at the end of the period/ year Components of cash and cash equivalents Cash on hand (refer note 13) Balances with banks On current accounts# (refer note 13) On saving accounts (refer note 13) On Exchange Earner's Foreign Currency accounts (refer note 13) On unpaid dividend accounts• (refer note 14) Cheques on hand (refer note13) Cash and cash equivalents	For the half year ended September 30, 2018 September 30, 2017 Inf Million (29.50) 306.68 (8.97) Inf Million (40.56) 451.03 56.48 For the year ended March 31, 2018 Inf Million (256.10) 451.03 111.75
	0.13 124.79 11.63 127.13 2.31 2.22 0.13 241.08 0.76 223.58 1.40 0.11 158.58 0.75 145.83 1.41
	268.21 466.95 306.68

Out of the cash and cash equivalent balance as at September 30, 2018, the Company can utilise � 2.98 million only towards research and development activities specified in the loan /grant agreement. There were no such restrictions for utilisation of the cash and cash equivalent balance as at September 30, 2017 and March 31, 2018.

• The Company can ulHizc these balances only towards settlement of the respective unpaid dividend.

Summary of significant accounting policies - Refer note 3

The accompanying notes are an integral part of the condensed financial statements

As per our report of even date

For Deloitte Haskins & Sells LLP !CAI Firm registration no.117366W/W-100018 Chartered Accountants

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Place: Pune Date :October 21,2018

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For and on behalf of the Board of Directors of
Persistent Systems Limited
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Dr. Anand Deshpande
Chairman and Managing Director
Sunil Sapre Amit Atre
Execulive Director and Company Se etary
Chief Financial Officer
Place: Pune
Date : October 21, 2018
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Persistent Systems Limited
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CONDENSED STATEMENT OF CHANGES IN EQUITY FOR THE HALF YEAR ENDED SEPTEMBER 30, 2018

A. Equity share capital (Refer note 4) (Inf Million)	A. Equity share capital (Refer note 4) (Inf Million)	A. Equity share capital (Refer note 4) (Inf Million)
Balance as at April 1, 2018	Changes in equity share capital during theperiod	Balance as at September 30, 2018
800.00	~~-~~	800.00
(In f Million)
Balance as at April 1, 2017	Changes in equity share capital during theperiod	Balance as at September 30, 2017
800.00	~~-~~	800.00
(Inf Million)
Balance as at April 1, 2017	Changes in equity share capital during theyear	Balance as at March 31, 2018
800.00	~~-~~	800.00

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Persistent Systems Limited
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CONDENSED STATEMENT OF CHANGES IN EQUITY FOR THE HALF YEAR ENDED SEPTEMBER 30, 2018

B. Other equity

B. Other equity
					(In� Million)
Particulars	Rcse,es and surglus				Items of other com�rehensive income		Total
	Securities premium reserve	General reserve	Share options outstanding reserve	Retained earnings	Effe of	ctive portion cash flow hedges
Balance as at April 1, 2018 Net profit for the period Other comprehensive income for the period Dividend Tax on dividend Adjustments towards employees stock options	1,336.70	9,296.47 7.54	90.52 (7.54)	8,991.72 1,820.07 (25.47) (240.00) (20.18)		16.63 (298.29)	19,732.04 1,820.07 (323.76) (240.00) (20.18)
Balance as at September 30,2018	1,336.70	9,304.01	82.98	10,526.14		(281.66)	20,968.17

(In� Million}

								(In� Million}
Particulars			Resetes and surglus			Items of other com�rehensive income		Total
	Securities premium reserve	Gener	al reserve	Share options outstanding reserve	Retained earnings	Effe o	ctive portion f cash flow hedges
Balance as at April 1, 2017 Net profit for the period Other comprehensive income for the period Dividend Tax on dividend Employee stock compensation expenses Employee stock compensation expenses of subsidiaries Adjustments towards emplovees stock options	1,336.70		7,827.60 31.60	187.12 2.23 1.57 (31.60)	7,784.28 1,615.24 60.09 (240.00) (48.86)		208.44 (159.10)	17,344.14 1,615.24 (99.01) (240.00) (48.86) 2.23 1.57
Balance as at September 30,2017	1,336.70		7,859.20	159.32	9,170.75		49.34	18,575.31
							(Inf Million}
Particulars			Reserves and sur[:lus			Items of other com�rehensive income		Total
	Securities premium reserve	Gener	al reserve	Share options outstanding resere	Retained earnings	Effe o	ctive portion f cash flow hedges
Balance as at April 1, 2017 Net profit for the year Other comprehensive income for the year Dividend Tax on dividend Transfer to general reserve Employee stock compensation expenses Employee stock compensation expenses of subsidiaries Adjustments towards employees stock options	1,336.70		7,827.60 1,368.47 100.40	187.12 2.23 1.57 (100.40) 7,784.28 3,421.17 104.97 (800.00) (150.23) (1,368.47)			208.44 (191.81)	17,344.14 3,421.17 (86.84) (800.00) (150.23) 2.23 1.57
Balance at March 31,2018	1,336.70		9,296.47	90.52 8,991.72			16.63	19,732.04

						(Inf Million}
					Items of other
		Reserves	and sur[:lus		com�rehensive
Particulars					income	Total
	Securities premium reserve	General reserve	Share options outstanding resere	Retained earnings	Effective portion of cash flow hedges
Balance as at April 1, 2017	1,336.70	7,827.60	187.12	7,784.28	208.44	17,344.14
Net profit for the year				3,421.17		3,421.17
Other comprehensive income for the year				104.97	(191.81)	(86.84)
Dividend				(800.00)		(800.00)
Tax on dividend				(150.23)		(150.23)
Transfer to general reserve		1,368.47		(1,368.47)
Employee stock compensation expenses			2.23			2.23
Employee stock compensation expenses of subsidiaries			1.57			1.57
Adjustments towards employees stock options		100.40	(100.40)
Balance at March 31,2018	1,336.70	9,296.47	90.52	8,991.72	16.63	19,732.04

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Summary of significant accounting policies - Refer note 3

The accompanying notes are an integral part of the condensed financial statements

As per our report of even date

For Deloitte Haskins & Sells LLP ICAI Firm registration no. 117366W/W-100018 Chartered Accountants Place: Pune Date : October 21, 2018

For and on behalf of the Board of Directors of Persistent Systems Limited

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Chairman and Managing Director Director
Sunil Sapre AmitAtr
Executive Director and
Chief Financial Officer
Place: Pune
Date : October 21, 2018
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Persistent Systems Limited
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Notes forming part of condensed financial statements

1. Nature of operations

Persistent Systems Limited (the "Company") is a public Company domiciled in India and incorporated under the provisions of the Companies Act, 1956 (the "Act"). 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 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 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 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 Companies Act, 2013.

3. Summary of significant accounting policies

(a) Use of estimates

The preparation of the condensed 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. Although these estimates are based on the management's 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.

Critical accounting estimates

i. Revenue recognition

The Company uses the percentage-of-completion method in accounting for its fixed-price contracts. Use of the percentage-of-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.

ii. Income taxes

The Company's major tax jurisdictions 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 of depreciation is derived after determining an estimate of an asset's expected useful life and the expected residual value at 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

Provisions are determined based on the best estimate 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.

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Persistent Systems Limited
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Notes forming part of condensed financial statements

(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 book value 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.

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 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 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.

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) Depreciation and amortization

Depreciation on Property, Plant and Equipment is provided using the Straight Line Method ('SLM') over the useful lives of 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*	§YE�i:�

*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 year of acquisition.

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Persistent Systems Limited
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Notes forming part of condensed financial statements

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 commencing from the day the asset is made available for use.

(e) 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 profit or 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)

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Financial assets that are held within a business model whose objective is achieved both by collecting contractual cash flows and selling the financial assets and the assets' contractual cash flows represent solely payments of principal and 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.

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 - "Financial Instruments" relating 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 under other comprehensive income is transferred to the statement of profit and loss when the forecasted transaction occurs or affects profit or 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.

On derecognition of a financial asset in its entirety, the difference between the asset's carrying amount and the sum of 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 profit or loss.

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Persistent Systems Limited
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Notes forming part of condensed financial statements

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 profit or 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 as at fair value through profit or loss if the recognition criteria as per Ind AS 109 - "Financial Instruments" 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 Company has not designated any financial liability as at FVTPL.

Derecognition

The Company derecognises financial liabilities when the Company's obligations are discharged, cancelled or have expired. The difference between the carrying amount of the financial liability derecognised and the consideration paid and payable is recognised in profit or 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 indication of impairment based on internal/external factors. If any indications exist, the Company estimates the asset's recoverable amount.

Recoverable amount of intangible 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.

An impairment loss is recognized wherever the carrying amount of an asset exceeds 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.

(f) Borrowing costs

Borrowing cost includes interest, 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.

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(g) Leases

Where the Company is a lessee

Leases, where the lessor effectively retains substantially all the risks and benefits of ownership of the leased item, are classified as operating leases.

Operating lease payments are recognized as an expense in the statement of profit and loss as per the terms of the lease agreements.

(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

Effective April 1, 2018, the Company adopted Ind AS 115 "Revenue from Contracts with Customers" using the cumulative catch-up transition method, applied to contracts that were not completed as of April 1, 2018. In accordance with the cumulative catch-up transition method, the previous period's/ year's amounts have not been retrospectively adjusted. The following is a summary of new and/or revised significant accounting policies related to revenue recognition. The effect on adoption of Ind AS 115 was insignificant.

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.

Revenue from licenses where the customer obtains a "right to use" the licenses is recognized at the time the license is made available to the customer. Revenue from licenses where the customer obtains a "right to access" is recognized over the access period.

The company has applied the principles under Ind AS 115 to account for revenues from these performance obligations.

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 royalty 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 Service Tax, value added taxes (VAT) 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 rate. Interest income is included under the head 'Other income' in the statement of profit and loss.

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Notes forming part of condensed financial statements

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(iii) Dividend

Dividend income is recognized when the Company's right to receive dividend is established. Dividend income is included under the head 'Other income' in the statement of profit and loss.

(i) Government grants

Government grants are recognised 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

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 in which they arise.

Translation of foreign operations

The Company presents the 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 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 basis. There are no other contributions payable other than contribution payable to the respective fund.

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Notes forming part of condensed financial statements

(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 for twelve months after the reporting date.

(v) Long service awards

Long service awards are other long term benefits to all eligible employees, as per Company's policy. 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.

(I) 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.

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.

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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 profiU 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. Deferred tax assets are recognized only to the extent that sufficient future taxable income will be available against which such deferred tax assets can be realized.

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 temporary differences which reverse during the tax holiday period, to the extent the Company's gross total income is subject 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.

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 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 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 to the statement of profit and loss and shown as "MAT Credit Entitlement." The Company reviews the "MAT credit entitlement" asset at each reporting date and writes down the asset to the extent the Company does not have convincing evidence that it will pay normal tax during the specified period.

(m) Segment reporting

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 statements which are presented together

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Notes forming part of condensed financial statements

with the unconsolidated financial statements.

(n) Earnings per share (EPS)

Basic earnings per share are calculated by dividing the net profit for the period I 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. Further, the weighted average number of equity shares used in computing the basic earnings per share is reduced by the shares held by PSPL ESOP Management Trust at the balance sheet date, which were obtained by subscription to the shares from finance provided by the Company.

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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 I 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 financial statements by the Board of Directors.

(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 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.

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(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).

In accordance with Ind AS 102 - "Share Based Payments", the 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 vesting period has expired and the Company's best estimate of the number of equity instruments that will ultimately vest.

The expense or credit recognized in the statement of profit and loss for a period I 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.

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Notes forming part of condensed financial statements

4. Share capital

- --- ------ Authorized shares (No. in million) 200 (Previous period/ year: 200) equity shares of_z_ 10 each Issued, subscribed and fully paid-up shares (No. in million) 80 (Previous period/ year: 80) equity shares of_z_10 each Issued, subscribed and fully paid-up share capital	As at September 30, 2018 InzMillion As at September 30, 2017 InzMillion As at March 31, 2018 InzMillion - --- -------- 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 800.00 800.00 800.00 800.00 800.00 800.00

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:

	The reconciliation of the number of shares outstanding and the amount of share capital is set out below:
	(In Million)
	at September 30, 2018 No. of shares Amount As at September 30, 2017 No. of shares Amount As at March 31, 2018 No. of shares **Amount **
	Number of shares at the beginning of theperiod /year Number of shares at the end of the 80.00 800.00 80.00 800.00 80.00 800.00 80.00 800.00 80.00 800.00 80.00 800.00

b) Terms/ rights attached to equity shares

The Company has only one class of equity shares having a par value of z10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

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	For the period of	For the period of
		five years ended	five years ended	five years ended
		September 30, 2018	September 30, 2017	March 3.1, 2018
		No inMillion	No inMillion	No inMillion
Equity shares allotted on March 12, 2015		40.00	40.00	40.00
as fully paid bonus shares by capitalization
of securities	_z_400.00 million
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Notes forming part of condensed financial statements

d) Details of shareholders holding more than 5% shares in the Company

Name of the shareholder*		As at	As	at	As at
	September 30, 2018		September 30, 2017		March 31,	2018
	No. in	% Holding	No. in	% Holding	No. in	%
	million		million		million	Holding
Dr. Anand Deshpande	22.93	28.66	22.93	28.66	22.93	28.66
jointly with Mrs. Sonali
Anand Deshpande
Saif Advisors Mauritius	1.30	1.62	4.27	5.33	3.70	4.62
Limited

• The shareholding information is based on legal ownership of shares and has been extracted from the records of the Company including register of shareholders I members.

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Notes forming part of condensed financial statements

5.1 Property, Plant and Equipment

Gross block (At cost) As at April 1, 2018 Additions Disposals As at September 30, 2018 Depreciation and impairment As at April 1, 2018 Charge for the period Disposals As at September 30, 2018 Net block As at September 30, 2018 As at March 31, 2018	Freehold land Buildings Computers Ofice Plant and Leasehold Furniture and Vehicles equipments equipment improvement fixtures* 206.92 2,386.97 1,632.30 53.48 1,377.70 21.12 511.29 4.73 0.07 48.32 0.56 10.21 2.09 2.34 30.39 1.05 12.94 0.47	(In� Million)
		Total 6,194.51 63.59 44.85
	206.92 2,387.04 1,650.23 52.99 1,374.97 21.12 512.91 7.07 868.36 1,395.62 47.67 1,080.85 15.43 458.28 4.42 48.26 83.18 1.66 41.99 1.38 12.12 0.24 30.39 1.05 12.94 0.47	6,213.25 3,870.63 188.83 44.85
	916.62 1,448.41 48.28 1,109.90 16.81 469.93 4.66	4,014.61
	206.92 1,470.42 201.82 4.71 265.07 4.31 42.98 2.41	2,198.64
	206.92 1,518.61 236.68 5.81 296.85 5.69 53.01 **0.31 **	2,323.88
		(In� Million)
	Freehold land Buildings Computers Ofice Plant and Leasehold Furniture and Vehicles equipments equipment improvements fixtures*	Total
Gross block (At cost) As at April 1, 2017 Additions Disposals As at September 30, 2017 Depreciation and impairment As at April 1, 2017 Charge for the period Disposals As at September 30, 2017 Net block As at September 30, 2017	206.92 2,366.57 1,565.38 52.09 1,358.96 21.12 500.10 4.73 11.16 61.96 1.74 14.76 6.96 44.29 0.84 4.72	6.075.87 96.58 49.85
	206.92 2,377.73 1,583.05 52.99 1,369.00 21.12 507.06 4.73	6,122.60
	772.59 1,290.21 44.84 1.018.03 12.67 432.22 4.21 47.93 104.45 1.89 45.35 1.38 13.09 0.11 44.28 0.73 4.72	3,574.77 214.20 49.73
	820.52 1,350.38 46.00 1,058.66 14.05 445.31 4.32	3,739.24
	206.92 1,557.21 232.67 6.99 310.34 7.07 61.75 0.41	2,383.36

• Note: Building includes those constructed on leasehold land:

a) Gross block as on September 30, 2018 � 1,454.1 O million (Corresponding period � 1,434.63 million/ Previous year� 1.454.10 million)

b) Depreciation charge for the period � 29.55 million (Corresponding period � 29.17 million/ Previous year� 58.45 million)

c) Accumulated depreciation as on September 30, 2018 { 410.60 million (Corresponding period� 351.77 million/ Previous year� 381.05 million)

d) Net book value as on September 30, 2018 � 1,043.50 million (Corresponding period� 1.082.86 million/ Previous year� 1,073.05 million)

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Persistent �ystems Limited
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Notes forming part of condensed financial statements

5.1 Property, Plant and Equipment

5.1 Property, Plant and Equipment
	(Inf Million)
	Freehold land Buildings Computers Office Plant and Leasehold Furniture and Vehicles Total equipments equipment improvements fixtures 206.92 2,366.57 1,565.38 52.09 1,358.96 21.12 500.10 4.73 6.075.87 20.40 156.27 2.44 45.74 11.77 236.62 89.35 1.05 27.00 0.58 117.98
Gross block (At cost) As at April 1. 2017 Additions Disposals As at March 31, 2018 Depreciation and impairment As at April 1, 2017 Charge for the year Disposals As at March 31, 2018 Net block As at March 31, 2018 As at March 31, 2017
	206.92 2,386.97 1,632.30 53.48 1,377.70 21.12 511.29 4.73 6,194.51
	772.59 1,290.21 44.84 1,018.03 12.67 432.22 4.21 3,574.77 95.77 194.76 3.77 89.46 2.76 26.64 0.21 413.37 89.35 0.94 26.64 0.58 117.51
	868.36 1,395.62 47.67 1,080.85 15.43 458.28 4.42 3,870.63
	206.92 1,518.61 236.68 5.81 296.85 5.69 53.01 0.31 2,323.88
	206.92 1,593.98 275.17 7.25 340.93 8.45 67.88 0.52 2,501.10

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Notes forming part of condensed financial statements

5.2 Other Intangible assets

5.2 Other Intangible assets
	(In fMillion)
	Software Acquired contractual rights Total
Gross block As at April 1, 2018 Additions As at September 30, 2018 Amortization and impairment As at April 1, 2018 Charge for the period As at September 30, 2018 Net block As at September 30, 2018 As at March 31, 2018	660.92 40.83 261.74 922.66 40.83
	701.75 261.74 963.49
	543.44 42.25 261.74 805.18 42.25
	585.69 261.74 847.43
	116.06 116.06
	117.48 117.48

	(In, Million)
	Software Acquired contractual Total
As at April 1, 2017 Additions As at September 30, 2017 Amortization and impairment As at April 1, 2017 Charge for the period As at September 30, 2017 Net block As at September 30, 2017	641.04 261.74 11.82 652.86 261.74 902.78 11.82 914.60
	431.42 249.32 60.19 12.42 680.74 72.61
	491.61 261.74 753.35
	161.25 161.25
	(In, Million)
	Softare Acquired contractual Total
As at April 1, 2017 Additions As at March 31, 2018 Amortization and impairment As at April 1, 2017 Charge for the year As at March 31, 2018 Net block As at March 31, 2018 As at March 31, 2017	641.04 261.74 902.78
	431.42 112.02 249.32 12.42 680.74 124.44
	543.44 261.74 805.18
	117.48 117.48
	209.62 12.42 222.04

5.3 Depreciation and amortization

5.3 Depreciation and amorization
	(Inf Million)
	For the quarer ended September 30, 2018 September 30, 2017 For the half year ended September 30, 2018 September 30, 2017 For the year ended March 31, 2018
On Property, Plant and Equipment On other intangible assets	91.90 105.26 21.99 28.86 188.83 214.20 42.25 72.61 413.37 124.44
	113.89 134.12 231.08 286.81 537.81

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Persistent Systems Limited
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Notes fanning part of condensed financial statements

1. Non-current financial assets : Investments (refer note 29)

	As at As at September 30, 2018 September 30, 2017 In , Million In , Million As at March 31, 2018 Inf Million
Investments carried at cost Unquoted investments Investmentsinequity instruments - In wholly owned subsidiary companies Persistent Systems, Inc. (Refer note 30) 402 million (Corresponding period/ Previous year : 402 million) shares of USO 0.1 O each, fully paid up Persistent Systems Pte Ltd. 0.50 million (Corresponding period/ Previous year: 0.50 million) shares of SGD 1 each, fully paid up Persistent Systems France SAS 1.50 million (Corresponding period/ Previous year: 1.50 million) shares of EUR 1 each, fully paid up Persistent Systems Malaysia Sdn. Bhd. 5.45 million (Corresponding period/Previous year: 5.45 million) shares of MYR 1 each, fully paid up Persistent Systems Germany GmbH 0.025 million (Corresponding period/ Previous year: 0.025 mi1!1on) shares of EUR 1 each, fu!!y paid up -In associates Klisma e-Services Private Limited {Holding 50% (Corresponding period/Previous year: 50% )j 0.005 million (Corresponding period_I_Previous year 0.005 million) shares of � 10 each, fully paid up Less : Impairment Total investments carried at cost (A) Investments carried at amortised cost Quoted Investments In bonds (Market value� 1,695.36 minion (Corresponding period_t_994.85 million/ Previous year� 1,139.71 million)] Add: Interest accrued on bonds Total investments carried at amorised cost {B) Designated as fair value through profit and loss Quoted Investments - Investments in mutual funds Fair value of long term mutual funds (Refer Note 6a) Unquoted Investments -Others Altizon Systems Private Limited 3,766 equity shares (Corresponding period / Previous year 3,766 equity shares) off 10 each, fully paid up Total investments carried at fair value (C) Total investments(A)+ (B) + (C)* Aggregate provision for diminution in value of investments Aggregate amount of quoted investments Aggregate amount of unquoted investments	2,478.01 2,478.01 2,478.01 2,478.01 15.50 15.50 15.50 15.50 97.47 97.47 2,478.01 2,478.01 15.50 15.50 97.47
	97.47 97.47 97.47
	102.25 102_25 102.25
	102.25 102.25 102.25
	2.02 2.02 2.02
	2.02 2.02 2.02
	0.05 0.05 (0.05) (0.05) 0.05 (0.05)
	2,695.25 2,695.25 1,642.36 931.02 1,500.88 1,479.58 2,695.25 1,112.47 1,657.49
	1,500.88 1,479.58 1,657.49
	6.00 6.00 6.00 6.00 6.00 6,00
	1,506.88 1,485.58 1,663.49
	5,931.17 5,157.85 0.05 0.05 3,229.92 2,456.60 2,701.30 2,701.30 5,504.85 0.05 2,803.60 2,701.30

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• 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"

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Notes forming part of condensed financial statements

6 a) Details of fair value of investment in long term Mutual Funds (Quoted)

	As at	As at	As at
	September 30, 2018	September 30, 2017	March 31, 2018
	In� Million	In�Million	In� Million
ICICI Prudential Mutual Fund	518.22	593.68	664.16
Kotak Mutual Fund	278.50	179.14	214.02
HDFC Mutual Fund	195.28	157.21	191.64
Aditya Birla Sun Life Mutual Fund	181.02	104.56	157.98
UTI Mutual Fund	151.21	57.58	89.43
SBI Mutual Fund	61.37	117.34	177.65
Reliance Mutual Fund	54.89	52.53	53.81
DHFL Pramerica Mutual Fund	30.22
DSP Mutual Fund	30.17
IDFC Mutual Fund		217.54	108.80
	1,500.88	1,479.58	1,657.49

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Notes forming part of condensed financial statements

7. Non-current financial assets: Loans (refer note 29)

Carried at amortised cost Loan to related paries Unsecured, considered good • Persistent Systems, Inc • Persistent Systems Germany GmbH Add: Interest accrued but not due on loan Security deposit Unsecured, considered good Unsecured, considered doubtful Less: Impairment Other loans and advances Inter corporate deposits Unsecured, considered good Unsecured, considered doubtful Less: Impairment 8. Other non-current financial assets (refer note 29)		As at September 30, 2018 In r Million As at September 30, 2017 In r Million As at March 31, 2018 In r Million
		713.54 4.91 320.12 654.21 5.41 130.34 686.84 13.35
		718.45 979.74 830.53
		112.15 114.79 2.19 115.28 2.19
		112.15 116.98 2.19 117.47 2.19
		112.15 114.79 115.28
		0.58 0.08 0.58 0.58
		0.58 (0.58) 0.66 (0 58) 0.58 (0.58)
		0.08
		830.60 1,094.61 945.81
		As at September 30, 2018 In r Million 24.99 0.41 As at September 30, 2017 Inf Million 1.53 0.15 As at March 31, 2018 Inf Million 1.53 0.21
Non-current bank balances (Refer note 14) Add: Interest accrued but not due on non-current bank deposits Non-current deposits with banks (Carried at amortised cost) Deposit with financial institutions Add: Interest accrued but not due on deposit with financial institutions Non-current deposits with financial institutions {Carried at amortised cost) 9. Deferred tax assets (net)
		25.40 1.68 1.74
		300.00 35.00
		25.40 317.41 37.43

		As at September 30, 2018 In r Million As at September 30, 2017 Inf Million As at March 31, 2018 Inf Million
Deferred tax liabilities Differences in book values and tax base values of block of Property, Plant and Equipment and other intangible assets Capital gains (net) Others Deferred tax assets Provision for leave encast1ment Provision for long service awards Provision for doubtful debts Tax credit Others Deferred tax (liabilities) J assets (net)		48.04 65.58 77.42 110.51 26.11 63.50 117.36 8.80
		113.62 214.04 189.66
		64.98 57.44 24.09 62.53 151.29 56.28 60.29 65.58 22.20 54.35 57.34 27.75 73.17 8.73
		360.33 204.35 221.34
		246.71 (9.69) 31.68
10. Other non current assets
		As at September 30, 2018 Inf Million As at September 30, 2017 Inf Million As at March 31, 2018 Inf Million
Advances recoverable in cash or kind or for value to be received		78.74 54.10 64.00
		78.74 54.10 64.00

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Notes forming part of condensed financial statements

1. Current financial assets: Investments (refer note 29)

11. Current financial assets: Investments (refer note 29)
	As at September 30, 2018 IntMillion As at As at September 30, 2017 March 31, 2018 Inf Million Inf Million
Designated as fair value through profit and loss - Quoted investments Investments in mutual funds Fair value of current mutual funds (Refer Note 11a} Total carrying amount of investments Aggregate amount of quoted investments	7,382.85 4,810.64 5,916.31
	7,382.85 4,810.64 5,916.31
	7,382.85 4,810.64 5,916.31
	7,382.85 4,810.64 5,916.31

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Notes forming part of condensed financial statements

11 a) Details of fair value of current investment in mutual funds (Quoted)

	As at September 30, 2018 In� Million As at September 30, 2017 In� Million As at March 31, 2018 In� Million
UT! Mutual Fund Aditya Birla Sun Life Mutual Fund Axis Mutual Fund L& T Mutual Fund IDFC Mutual Fund ICICI Prudential Mutual Fund DHFL Pramerica Mutual Fund SB! Mutual Fund DSP Mutual Fund Kotak Mutual Fund HDFC Mutual Fund Tata Mutual Fund Sundaram Mutual Fund Reliance Mutual Fund	1,126.57 1,010.65 1,001.39 1,000.34 674.28 516.11 470.23 411.45 258.04 230.88 228.86 228.79 225.26 707.17 487.52 492.11 278.84 352.93 220.04 366.90 271.32 509.87 605.29 518.65 823.08 845.88 743.70 749.22 349.34 275.33 441.64 50.24 50.39 300.42 174.66 817.81 104.15 190.45
	7,382.85 4,810.64 5,916.31

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Notes forming part of condensed financial statements

12. Trade receivables (refer note 29)

	As at September 30, 2018 Inf Million 0.97 68.94 As at As at September 30, 2017 March 31, 2018 Inf Million Inf Million 9.60 14.52 186.37 80.20
Outstanding for a period exceeding six months from the date they are due for payment Unsecured, considered good Unsecured, considered doubtful Less : Allowance for credit loss Others Unsecured, considered good Unsecured, considered doubtful Less . Allowance for credit loss
	69.91 (68.94) 195.97 94.72 (186.37) (80 20)
	0.97 9.60 14.52
	3,051.77 4,252.08 3,410.55 3.13
	3,051.77 4,255.21 3,410.55 3.13
	3,051.77 4,252.08 3,410.55
	3,052.74 4,261.68 3,425.07

1. Cash and cash equivalents (refer note 29)

	As at September 30, 2018 Inf Million As at As at September 30, 2017 March 31, 2018 Inf Million Inf Million
Cash and cash equivalents as presented in cash flow statement Cash on hand Balances with banks On current accounts* On saving accounts On Exchange Earer's Foreign Currency accounts Cheques on hand	0.13 124.79 11.63 127.13 2.22 0.13 0.11 241.08 158.58 0.76 0.75 223.58 145.83
	265.90 465.55 305.27

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"Out of the cash and cash equivalent balance as at September 30, 2018, the Company can utilise� 2.98 million only towards research and developrnent activities specified in the loan /grant agreement. There were no such restrictions for utilisation of the cash and cash equivalent balance as at September 30, 2017 and March 31, 2018.

14. Other bank balances (refer note 29)

14. Other bank balances(refer note 29)
	As at September 30, 2018 Inf Million 302.36 5.33 As at As at September 30, 2017 March 31, 2018 Inf Million Inf Million 567.07 747.03 107.68 129.92
Short term bank deposits· Add; Interest accrued but not due on deposits with banks 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) Less: Interest accrued but not due on non-current deposits with banks (Refer note 8) Balances with banks On unpaid dividend accounts*"
	307.69 (24.99) (0.41) 674.75 876.95 (1.53) (1.53) (0.15) (0.21)
	282.29 673.07 875.21
	2.31 1.40 1.41
	284.60 674.47 876.62

� Out of the balance, fixed deposits of� 86.31 million (Corresponding period � 62.24 million / Previous year ;?' 63.78 million) have been earmarked against bank guarantees availed by the Company .

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

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Notes forming part of condensed financial statements

1. Current financial assets : Loans {refer note 29)

Carried at amorised cost Loan to related parties Unsecured, considered doubtful - Klisma e-Services Private Limited Less: Impairment Security deposits Unsecured, considered good	As at September 30, 2018 Inf Million 27.43 As at As at September 30, 2017 March 31, 2018 Inf Million Inf Million 27.43 27.43
	27.43 (27.43) 27.43 27.43 (27.43) (27.43)
	5.96 3.87 4.47
	5.96 3.87 4.47

16. Other current financial assets {refer note 29)

Fair value of derivatives designated and effective as hedging instruments Forard contracts receivable Advances to related paries (Unsecured, considered good) Persistent Systems, Inc. Persistent Systems Pte Ltd. Persistent Systems France SAS Persistent Systems Malaysia Sdn. Bhd. Persistent Systems Lanka (Private) Limited Persistent Systems Israel Ltd. Persistent Systems Mexico, S.A. de CV Akshat Corporation Persistent Systems GermanyGmbH Advances to related paries (Unsecured, considered doubtful} Ktisma C·Services Private Limited Less: Impairment of current financial assets Deposit with financial institutions (refer note 32) Add: Interest accrued but not due on deposit with financial institutions Current deposits with financial institutions (Carried at amortised cost) Unbilled revenue 17. Other current assets	As at September 30, 2018 Inf Million 58.00 0.02 4.15 0.04 2.06 0.15 0.51 0.10 As at September 30, 2017 Inf Million 145.15 64.47 2.84 1.68 0.02 0.24 0.11 0.74	As at March 31, 2018 Inf Million 42.75 67.27 0.15 3.34 0.29 1.95 0.03 0.40 0.05
	65.03 70.10	73.48
	0.81 (0.81) 0.81 (0.81)	0.81 (0.81)
	1,180.00 52.24 140.35 4.74	995.35 20.65
	1,232.24 145.09	1,016.00
	1,605.96 630.12	715.47
	2,903.23 990.46	1,847.70
	As at September 30, 2018 Inf Million As at September 30, 2017 Inf Million	As at March 31, 2018 Inf Million
Advances to suppliers (Unsecured, considered good} Advances recoverable in cash or kind or for value to be received Other advances (Unsecured, considered good) VAT receivable (net) Service tax and GST receivable {net) {refer note 31)	436.22 38.97 1,181.45 404.69 52.13 807.52	360.47 47.09 967.06
	1,220.42 859.65	1,014.15
	1,656.64 1,264.34	1,374.62

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Notes forming part of condensed financial statements

1. Non-current financial liabilities : Borrowings (refer note 29)

	As at September 30, 2018 Inf Million 17.91 0.01 As at As at September 30, 2017 March 31, 2018 Inf Million Inf Million 22.49 21.13 0.73 0.78
Unsecured Borrowings carried at amortised cost Term loans Indian rupee loan from others Interest accrued but not due on term loans Less: Current maturity of long�term borrowings transferred to other current financial liabililies (Refer note 21) Less: Current maturity of interest accrued but not due on term loan transferred to other current financial liabilities (Refer note 21)
	17.92 (2.73) (0.01) 23.22 21.91 (2.73) (4.58) (0.29) (0.78)
	(2.74) (3.02) (5.36)
	15.18 20.20 16.55

The term loans from Government departments have the following terms and conditions:

Loan I - amounting to< 6.82 million (Corresponding period � 9.55 million/ Previous year� 8.19 million) with interest payable @ 2% per annum guaranteed by a bank guarantee by the Company and repayable in ten equal semi annual installments over a period of five years commencing from March 2016.

Loan II - amounting to< 11.09 million (Corresponding period� 12.94 million/ Previous year< 12.94 million) with Interest payable @3% per annum repayable in ten equal annual installments over a period of ten years commencing from September 2015.

19. Non current liabilities : Provisions

	As at As at September 30, 2018 September 30, 2017 In f Million In , Million As al March 31, 2018 Inf Million
Provision for employee benefits - Long serice awards	135.73 145.75 143.37
	135.73 145.75 143.37

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Notes forming part of condensed financial statements

20. Trade payables (refer note 29)

	As at September 30, 2018 Inf Million As at As at September 30, 2017 March 31, 2018 Inf Million Inf Million
Trade payables for goods and seivices (refer note 30) 21. other current financial liabilities (refer note 29)	1,165.65 1,165.65 867.22 716.73 867.22 716.73
Current maturity of long term-borrowings (refer note 18) Current maturity of interest on long-term borrowings (refer note18) Accrued employee liabilities Unpaid dividend • Other liabilities Fair value of derivatives designated and effective as hedging instruments Forward contracts payable Advance from related parties (Unsecured, considered good) Persistent Systems Pie Ltd Persistent Systems Germany GmbH Aepona Limited Persistent Telecom Solutions Inc. As at September 30, 2018 Inf Million 2.73 0.01 72.58 2.31 0.74 544.59 0.01 0.30 19.62 19.93 667.25 As at As at September 30, 2017 March 31, 2018 Inf Million Inf Million 19.13 2.73 4.58 0.29 0.78 67.34 71.42 1.40 1.41 0.92 0.18 0.01 0.03 0.44 180.32 179.69 180.36 180.13 272.17 290.86
	19.93 180.36 180.13
	667.25 272.17 290.86

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

22. Other current liabilities

	As at September 30, 2018 Inf Million As at As at September 30, 2017 March 31, 2018 Inf Million Inf Million
Unearned revenue Advance from customers Other payables - Statutory liabilities - Other liabilities•	178.51 299.46 228.30 7.80 135.90 137.56 169.78 241.10 138.95 181.13 4.44 3.04
	714.07 449.07

• Includes grant of � 4.50 million received during the half year ended September 30, 2018, from Biotechnology Industry Research Assistance Council (BIRAC) pursuant to an agreement dated March 12, 2018. The amount together with additional grants to be received over 3 years from BIRAC and Company's share as prescribed in the agreement is to be spent as per the said agreement.

23. Current liabilities : Provisions

Provision for employee benefits - Gratuity - Leave encashment - Long seivice awards - Other employee benefits		As at As at As al September 30, 2018 September 30, 2017 March 31, 2018 Inf Million Inf Million Inf Million
		28.25 (40.65) (45.92) 185.96 162.62 157.04 28.65 28.47 22.31 228.43 271.17 294.60

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Notes forming part of condensed financial statements

24. Revenue from operations (net) (refer note 30)

	For the quarter ended September 30, 2018 September 30, 2017 Int Million Inf Million For the half year ended September 30, 2018 September 30, 2017 Inf Million Inf Million For the year ended March 31, 2018 InfMillion
Software services Software licenses	4,827.52 4,306.15 108.78 68.76 9,370.20 8,488.64 186.01 158.71 17,065.63 261.86
	4,936.30 4,374.91 9,556.21 8,647.35 17,327.49

25. Other income

25. Other income
	For the quarer ended September 30, 2018 September 30, 2017 Inf Million Inf Million 4.89 10.97 60.57 33.45 2.76 206.17 0.81 1.08 213.43 65.07 61.73 0.58 14.68 38.17 10.52 10.01 369.39 365.50 For the half year ended September 30, 2018 September 30, 2017 Inf Million Inf Million 18.39 23.02 121.97 61.41 4.83 397.73 1.28 1.13 295.38 111.13 213.57 129.53 (115.69) (15.12) 17.56 24.48 15.06 564.21 741.45 For the year ended March 31, 2018 Inf Million 47.12 144.48 596.02 2.47 259.73 186.84 (18.92) 17.56 41.52 1,276.82
Interest income On financial assets carried al amortised cost On others Foreign exchange gain (net) Profit on sale of fixed assets (net) Dividend income from investments Profit on sale of investments (net) Net gain/(loss) arising on financial assets designated as at FVTPL Excess provision in respect of earlier periods/ years written back Advances written back Miscellaneous income

26. Personnel expenses

	For the quarer ended September 30, 2018 September 30, 2017 Inf Million Inf Million 2,090.35 2,020.49 81.63 75.13 36.46 43.26 10.45 10.36 99.45 89.78 For the half year ended September 30, 2018 September 30, 2017 Inf Million Inf Million 4,126.15 3,954.54 157.44 150.29 77.26 80.14 20.58 20.90 197.70 176.39 2.23 For the year ended March 31, 2018 Inf Million 7,863.97 304.60 163.94 41.26 364.66 2.23
26.1 Employee benefits expense Salaries, wages and bonus Contribution to provident and other funds Gratuity expenses Defined contribution to other funds Staff welfare and benefits Employee stock compensation expenses 26.2 Cost of professionals - Related parties (refer note 30) -Others
	2,318.34 2,239.02 482.37 512.84 74.37 54.14 4,579.13 4,384.49 908.68 1,041.84 154.24 117.54 8,740.66 1,894.75 238.28
	556.74 566.98 2,875.08 2,806.00 1,062.92 1,159.38 5,642.05 5,543.87 2,133.03 10 873.69

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Notes forming part of condensed financial statements

1. Other expenses

	For the quarter ended September 30, 2018 September 30, 2017 In l Million In l Million For the half year ended September 30,2018 September30,2017 March 31, 2018 InlMillion InlMillion InlMillion
Travelling and conveyance Electricity expenses (net) Internet link expenses Communication expenses Recruitment expenses Training and seminars Purchase of software licenses and support expenses Bad debts Provision for doubtful debts/ (provision for doubtful debts written back) (net) Rent Insurance Rates and taxes Legal and professional fees Repairs and maintenance � Plant and Machinery - Buildings -Others Selling and marketing expenses Advertisement, conference and sponsorship fees Computer consumables Auditors' remuneration Donations Books, memberships, subscriptions Directors' silting fees Directors' commission Miscellaneous expenses	87.05 81.48 22.41 16.50 12.96 9.28 18.17 21.11 13.70 5.19 2.48 1.24 201.43 102.20 4.03 1.55 (2.22) (7.15) 61.65 61.04 4.52 4.85 6.36 28.31 61.39 54.62 22.52 24.19 7.09 5.48 4.20 3.86 417.31 164.36 2.39 1.48 0.92 0.56 1.98 1.78 18.71 17.18 5.12 3.29 1.02 1.17 3.61 2.40 31.53 34.22 176.85 166.74 321.25 47.96 41.84 85.54 27.18 22.70 46.24 37.18 48.19 75.90 26.04 19.50 27.11 4.63 3.58 11.52 335.49 250.81 484.07 23.55 36.19 157.62 (13.84) (37.20) (146.42) 122.53 122.24 242.75 8.62 9.69 18.01 12.89 50.62 77.78 116.71 105.02 207.86 51.00 50.65 104.73 16.84 12.28 26.28 10.55 9.22 20.09 596.88 321.14 614.69 6.75 7.09 14.71 2.93 1.68 5.63 3.74 3.74 8.07 36.69 38.21 78.02 9.38 6.86 14.77 2.60 2.25 3.90 7.01 4.37 9.74 65.23 69.65 130.17
	1,010.33 640.19 1,735.39 1,367.06 2,640.03

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Notes fonning part of condensed financial statements

28. Earnings per share

For the quarter ended September 30, 2018 September 30, 2017 For the half year ended September 30, 2018 September 30, 2017 For the year ended March 31, 2018	For the quarter ended September 30, 2018 September 30, 2017 For the half year ended September 30, 2018 September 30, 2017 For the year ended March 31, 2018
Numerator for Basic and Diluted EPS Net Profit after tax (In � Million) Denominator for Basic EPS Weighted average number of equity shares Denominator for Diluted EPS Number of equity shares Basic Earnings per share of face value of f 1 O each (In t} Diluted Earnings per share of face value off 10 each (In') (A) (B) (C) (NB) (NC) 896.82 864.10 80,000,000 80,000,000 80,000,000 80,000,000 11.21 10.80 11.21 10.80 1,820.07 1,615.24 80,000,000 80,000,000 80,000,000 80,000,000 22.75 20.19 22.75 20.19 3,421.17 80,000,000 80,000,000 42.76 42.76
	For the quarter ended September 30,2018 September 30,2017 For the half year ended September 30,2018 September 30,2017 For the year ended March 31,2018
Number of shares considered as basic weighted average shares outstanding Number of shares considered as weighted average shares and potential shares outstanding	80,000,000 80,000,000 80,000,000 80,000,000 80,000,000
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Notes forming part of condensed financial statements

29. Financial assets and liabilities

The carrying values and fair values of financial instruments by categories are as follows:

The carrying values and fair values of	financial instruments by categories are as follows:	financial instruments by categories are as follows:	financial instruments by categories are as follows:	financial instruments by categories are as follows:	financial instruments by categories are as follows:	financial instruments by categories are as follows:	financial instruments by categories are as follows:	financial instruments by categories are as follows:
	j_r' millionl
Financial assets/ financial liabiliti	es	Basis of measurement	As at September 30, 2018 Carryingvalue Fair value		As at September 30, 2017 Carryingvalue Fair value		As at March 31, 2018 Carryingvalue Fair valu		e	Fair value hierarchy
Assets: Investments in subsidiaries and associates Investments in equity instruments Investments in bonds· Investments in mutual funds Loans Deposit with banks and financial institutions Cash and cash equivalents (including unpaid dividend) Trade receivables Forward contracts receivable Unbilled revenue Other current financial assets		Cost Fair value Amorised cost Fair value Amortised cost Amortised cost Amorised cost Amortised cost Fair value Amortised cost Amortised cost	2,695.25 6.00 1,729.04 8,883.73 836.56 1,539.93 268.21 3.052.74 - 1.605.96 65.03	2,695.25 6.00 1,695.36 8,883.73 836.56 1,539.93 268.21 3,052.74 - 1,605.96 65.03	2,695.25 6.00 977.02 6,290.22 1,098.48 1,135.57 466.95 4,261.68 145.15 630.12 70.10	2,695.25 6.00 994.85 6,290.22 1,098.48 1,135.57 466.95 4,261.68 145.15 630.12 70.10	2.695.25 6.00 1,146.11 7,573.80 950.28 1.928.64 306.68 3.425.07 42.75 715.47 73.48	2,695.25 6.00 1,139.71 7,573.80 950.28 1,928.64 306.68 3,425.07 42.75 715.47 73.48		Level 3 Level 1 Level 2
Total			20,682.45	20,648.77	17,776.54	17,794.37	18,863.53	18,857.13
Liabilities: Borrowings (including accrued interest) Trade payables and deferred payment liabilities Other financial liabilities (excluding borrowings) Forward contractspayable		Amortised cost Amortised cost Amortised cost Fair value	17.92 1,165.65 119.92 544.59	17.92 1,165.65 119.92 544.59	23.22 867.22 269.15 -	23.22 867.22 269.15 -	21.91 716.73 285.50 -	21.91 716.73 285.50 -		Level 2
Total			1,848.08	1,848.08	1,159.59	1,159.59	1,024.14	1,024.14

• Fair value includes interest accrued.

Fair value hierarchy:

The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable and consists of the following three levels:

Level 1 - Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 - Inputs are other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3 - Inputs are not based on observable market data (unobservable inputs). Fair values are determined in whole or in part using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data.

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Notes forming part of condensed financial statements

30. (i) Significant related party transactions	(In fMillion)	(In fMillion)	(In fMillion)	(In fMillion)
	Name of the related party and nature of relationship	For the quarter ended September 30, September 30, 2018 2017 1,348.54 1,023.66 1,348.54 1,023.66 378.22 434.62 378.22 434.62		For the half year ended For the year ended September 30, September 30, March 31, 2018 2017 2018 2,593.06 1,941.02 4,199.30 2,593.06 1,941.02 4,199.30 721.24 851.55 1,595.83 721.24 851.55 1,595.83 15.50 15.48 15.50 15.48 2.23 8.28 2.23 8.28 566.99 312.84 604.01 566.99 312.64 604.01 617.25 617.27 617.25 617.27 0.78 1.85 0.78 1.85 3.05 2.66 3.05 2.66 1.07 17.24 1.07 17.24 133.64 187.90 133.64 187.90
Sale of software services	Subsidiaries Persistent Systems,lnc.
	Total
Cost of professionals {excluding reimbursement of expenses)	Subsidiaries Persistent Systems,Inc.
	Total
Reimbursement of expenses	Subsidiaries Persistent Systems,Inc
	Total	0.37 0.37 400.87 400.87	156.06 156.06	2.23 2.23 566.99 566.99
Purchase of Software	Subsidiaries Persistent Systems,Inc.
	Total
Selling and marketing expenses	Subsidiaries Pe,sistent Systems,Inc
	Total
Loans given	Subsidiaries Persistent Systems, Inc Persistent Systems GermanyGmbH
	Total
Commission received on corporate guarantee	Subsidiaries Persistent Systems,Inc	0.25 **0.25 **		0.78 0.78 3.05 3.05 1.07 1.07 133.64 133.64
	Total
Travelling and conveyance	Subsidiaries Persistent Systems,Inc.	1.76 1.76
	Total
Interest income	Subsidiaries Persistent Systems, Inc.
	Total
Repayment of lntercorporate deposits#	Subsidiaries Persistent Systems,Inc.
	Total
#These transactions are disclosed al the exchange rate (ii) Significant outstanding balances	s prevailing on the date of transaction. (Inf Million)
	Name of the related party and nature of relationship	As at > - -�----- September 30, September 30, 2018 2017 500.25 1,461.83 500.25 1,461.83 555.72 363.03 555.72 363.03 58.00 58.00 2,478.01 2,478.01 2.478.01 2,478.01 320.12 713.54 654.21 713.54 974.33 March 31, 2018 877.07 877.07 286.94 286.94 67.27 67.27 2,478.01 2,478.01 130.34 686.84 817.18
Trade receivables	Subsidiaries Persistent Systems,Inc.
	Total
Trade payables	Subsidiaries Persistent Systems,Inc.
	Total
Advances given (excluding interest accrued)	Subsidiary Persistent Systems,Inc.
	Total
Investments	Subsidiaries Persistent Systems, Inc. {including share application money pending allotment)
	Total
Loans given	Subsidiary Persistent Systems, Inc. Persistent Systems GermanyGmbH	713.54 713.54
	Total

#These transactions are disclosed al the exchange rates	prevailing on the date of transaction.
(ii) Significant outstanding balances						(Inf Million)
	As at Name of the related party and nature of relationship > - -�----- September 30, September 30, March 31,
		2018			2017	2018
Trade receivables	Subsidiaries
	Persistent Systems,Inc.		500.25		1,461.83	877.07
	Total		500.25		1,461.83	877.07
Trade payables	Subsidiaries
	Persistent Systems,Inc.		555.72		363.03	286.94
	Total		555.72		363.03	286.94
Advances given (excluding interest accrued)	Subsidiary
	Persistent Systems,Inc.		58.00			67.27
	Total		58.00			67.27
Investments	Subsidiaries
	Persistent Systems, Inc. {including share application	2,478.01			2,478.01	2,478.01
	money pending allotment)
	Total	2.478.01			2,478.01	2,478.01
Loans given	Subsidiary
	Persistent Systems, Inc.				320.12	130.34
	Persistent Systems GermanyGmbH		713.54		654.21	686.84
	Total		713.54		974.33	817.18

(iii) Guarantee given on behalf of subsidiary

Persistent Systems Ltd has given a guarantee of$ 15.170,000 on behalf of Persistent Systems Inc. (Previous period: S 170.000 / previous year: S 15,170,000)

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Persistent Systems Limited · · . "· . · .'·:. ., ."
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Notes forming part of condensed financial statements

31. Persistent Systems Limited ("the Company") had received a show cause notice from the Commissioner of Service Tax on 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 �165.51 million based on the period of limitation and as a result of that, the said demand now'CtWer-s-fifttffie�al·ye&··2.fH4A5:+hB'Geffipany has filed an appeal against the order passed by Learned Principal Commissioner of Service Tax, Pune with the Hon'ble Central Excise 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 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 has 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 has acknowledged the ground of revenue neutrality, the said appeal mainly questions non-application of extended period of limitation. The Company has 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 has 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.

As on September 30, 2018, the pending litigations in respect of direct taxes amount to � 227.12 million and in respect of indirect taxes amount to� 30.42 million (excluding the show cause received from Commissioner of Service Tax on May 29, 2017 of� 165.51 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.

32. As of September 30, 2018, the Company had deposits of Rs. 430.00 million with the financial institutions (refer Schedule 16) viz. Infrastructure Leasing & Financial Services Ltd. (IL&FS) and IL&FS Financial Services Ltd. (referred to as "IL&FS Group"). These are due for maturity from January 2019 to June 2019. In August 2018, credit rating agency - ICRA, has significantly downgraded the IL& FS Group's rating and subsequently it is noted that the Government of India and various regulators have intervened in the matter. As of September 30, 2018, there have been no defaults in payment of interest on the aforesaid deposits. Accordingly, the management of the Company believes that there is no immediate need to recognize any impairment on the above deposits as of September 30, 2018. The Company will continue to monitor the developments in this matter for the purpose of determining the financial reporting impact, if any.

33. The financial statements are presented in � million and decimal thereof except for per share information or as otherwise stated.

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LLP

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