Persistent Systems Limited — Interim / Quarterly Report 2019

Jul 25, 2019

NSE & SSE/ 2019-20 / 44

July 25, 2019

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

The Manager, Corporate Services, BSE Limited 14'" Floor, P J Towers, Dalal Street, Mumbai 400001

Ref: Symbol: PERSISTENT

Ref: Scrip Code: 533179

Dear Sir/ Madam,

Sub: Proceedings of the Meeting of the Board of Directors

We wish to inform you that the Board of Directors, at its meeting held on July 24, 2019 and concluded at 1825 HRS (1ST} on July 25, 2019, has taken the following decisions:

• A. Pursuant to Regulation 33 and all other applicable regulations, if any of the SEBI (Listing Obligations and Disclosure Requirements} Regulations, 2015, the Audited Financial Results for the quarter ended June 30, 2019 have been approved. Accordingly, we enclose the following documents:
• 1. Auditors' Report dated July 25, 2019 on the Consolidated Financial Results of the Company for the quarter ended June 30, 2019;
• 1. Consolidated Financial Results of the Company for the quarter ended June 30, 2019;
• 1. Auditors' Report dated June 30, 2019 on the Unconsolidated Financial Results of the Company for the quarter ended June 30, 2019;
• 1. Unconsolidated Financial Results of the Company for the quarter ended June 30, 2019
• B. In the notice of 29th Annual General Meeting (AGM} held on July 24, 2019, the Company had proposed re-appointment of M/s. Deloitte Haskins & Sells LLP, Chartered Accountants ('Deloitte'} as the statutory auditors for a second term of two years from the date of the 29th AGM till the conclusion of 31" AGM of the Company, to be held before September 30, 2021. The Company has received a communication dated July 23, 2019 from Deloitte informing that if their reappointment is approved for abovementioned term of 2 years, and not for 5 years, they will not be able to accept the same. Accordingly, the Board of Directors of the Company has decided to identify a suitable audit firm which would be appointed as the statutory auditors of the Company. In terms of Section 139(10} of the Companies Act, 2013, Deloitte shall continue to be the statutory auditor of the Company until the appointment of new statutory auditors.

Page 1 of2

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

Thanking you,

Yours sincerely, For Persistent Systems Limited

$\epsilon$ Amit Atre^-

Company Secretary ICSI Membership Number: ACS 20507

Encl: As above

Persistent Systems Limited

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

Audited consolidated financial results of Persistent Systems Limited

Audited unconsolidated financial information

for the quarter enged June 30, 2019				₹ in Million						₹ in Million
	Sr.		Quarter ended			Year ended				Quarter ended		Year ended
No.	Particulars		June 30, 2019 (Audited)	March 31, 2019 (Audited)	June 30, 2018 (Audited)	March 31, 2019 (Audited)		Particulars	June 30, 2019 (Audited)	March 31, 2019 (Audited)	June 30, 2018 (Audited)	March 31, 2019 (Audited)
	Revenue from operations		8,321.14	8,318.54	8,342.81	33,659.41		Revenue from operations	4,953 95	5,162.71	4,619 91	19,598.67
$\overline{2}$	Other income		300.36	283.96	186 75	876.55		Profit before tax	1,114 73	961 69	1,205.40	4,383.76
$\overline{3}$	Total income	$(1+2)$	8,621.50	8,602.50	8,529.56	34,535.96		Profit after tax	834.39	720.00	923.25	3,150.08
$\overline{4}$	Expenses							Segment wise Revenue, Results and Capital Employed
	- Employee benefits expense		4,916 25	4,859.47	4,618.37	19,249.53		The Group reorganised itself into three business units from April 1, 2018, which form the operating segments for segment reporting. The operating segments are:
	- Cost of professionals		859.82	862.83	844.68	3,490.45		a Technology Services
	- Finance costs		18.50	1.03	0.28	3.05		b. Aliance c. Accelerite (Products)
	- Depreciation and amortization expense		386 17	376.80	400 81	1,572.51						₹ in Million
	- Other expenses		1,343.15	1,389.23	1,479.17	5,357.03	Sr.	Particulars		Quarter ended		Year ended
	Total Expenses		7,523.89	7,489.36	7,343.31	29,672.57	No.		June 30, 2019 (Audited)	March 31, 2019 (Audited)	June 30, 2018 (Audited)	March 31, 2019 (Audited)
	Profit before exceptional items and tax	(3.4)	1,097 61	1,113.14	1,186 25	4,863.39		Segment revenue
	Exceptional items							- Technology Services	5,704.51	5,741.15	5,243.17	22,018.03
$\overline{7}$	Profit before tax	(5.6)	1,097.61	1,113.14	1,186.25	4,863.39		- Alliance	2,312.65	2,061.19	2,690.68	9,759.92
8	Tax expense							- Accelerite (Products) Total	303.98 8,321 14	516 20 8,318.54	408 96 8,342 81	1,881.46 33,659 41
	- Current tax		350.55	298.75 12.52	356.05	1,343.20 88 81		Less: Inter segment revenue 21	$\sim$
	- Tax charge / (credit) in respect of earlier years - Deferred tax charge / (credit)		(77.64)	(42.86)	(43.28)	(85.41)	3	Net sales/income from operations	8,321.14	8,318.54	8,342 81	33,659.41
	Total tax expense		272.91	268 41	312.77	1,346.60		Segment results profit/ (loss) before tax, interest and
	Profit for the period/year from continuing	(78)	824.70	844.73	873.48	3,516.79		depreciation and amortization - Technology Services	2,068.09	2,339.76	1,998.56	8,507.67
	operations							- Alliance	748.61	549.88	860.37	3,298.01
10	Profit / (Loss) for the period/year from							- Accelerite (Products)	10792	304 15	162 27	992 14
	discontinued operations							Total	2,924.62	3,193.79	3,021.20	12,797.82
11	Tax expense of discontinued operations						5 1	Less: - Finance costs	18.50	1.03	0.28	3.05
12	Profit / (Loss) for the period / year from	(10 11)						- Other un-allocable expenses	2,108.87	2,363.58	2,021.42	8,807.93
	discontinued operations (after tax)							6 Un-allocable income	300 36	283 96	186 75	876.55
13	Profit for the period / year	$(9+12)$	824 70	844 73	873.48	3,516.79		Total profit before tax	1,097.61	1,113 14	1,186.25	4,863.39
14	Other comprehensive income										As on	₹ in Million
	A. Items that will not be reclassified to profit and loss							8 Segment assets		June 30, 2019	March 31, 2019	June 30, 2018
	- Remeasurements of the defined benefit liabilities		(26.37)	12 19	(13.05)	(47.15)				(Audited)	(Audited)	(Audited)
	(assets) (net of tax)							- Technology Services		3,836.43	3,547.07	3,657.36
			(26.37)	12 19	(13.05)	(47.15)		- Alliance - Accelerite (Products)		700.25 195.50	1,021.77 354 17	1,618.23 355.04
	B. Items that may be reclassified to profit and loss							Total allocable segment assets		4,732.18	4,923.01	5,630.63
	- Effective portion of cash flow hedge (net of tax)		(23.19)	115.57	(159.13)	168 43		Unallocable assets		22,935.10	23,632.98	22,242.56
	Exchange differences in translating the		(0.63)	(58.42)	151 80	113.82		Total assets		27,667.28	28,555.99	27,873.19
	financial statements of foreign operations							Notes for seament wise information:
			(23.82)	5715	(7.33)	282.25		Operating segments are components of an enterprise for which discrete financial information is available that is evaluated regularly by the chief operating decision makers, in deciding how to allocate resources and assessing performance. The Group's chief operating decision makers are the Chief Executive Officer and the Chairman.
	Total other comprehensive income for the period / year	$(A+B)$	(50.19)	69 34	(20.38)	235 10		Segment wise capital employed Segregation of assets (other than trade receivables), liabilities, depreciation and amortization and other non-cash expenses into various reportable segments have not been presented as
15	Total comprehensive income for the period /	$(13+14)$	774.51	914.07	853 10	3,751.89		the assets are used interchangeably between segments and the Group is of the view that it is not practical to reasonably allocate the other assets, liabilities and other non-cash expenses to individual segments and an ad-hoc allocation will not be meaningful.
	year (Comprising Profit / (Loss) and Other						Notes:	1 The audited condensed consolidated financial statements for the quarter ended June 30, 2019, have been taken on record by the Board of Directors at its meeting concluded on July
	Comprehensive Income for the period / year)							25, 2019 as recommended by the Audit Committee at its meeting held on July 24, 2019. The statutory auditors have expressed an unqualified audit opinion. 2 The Board of Directors, in its meeting held in January 2019, approved the buyback by the Company of its fully paid-up equity shares having face value of ₹ 10 each. The window for
	16 Paid-up equity share capital		764 25	791 19	800 00	791 19		buying the shares opened on February 8, 2019 and the Company has purchased 3,575,000 equity shares between February 2019 and June 2019 and has extinguished these shares after following the due process. The Company has completed the Buyback on June 27, 2019 and the total number of equity shares outstanding as on June 30, 2019 post buyback stands at
	(Face value of share ₹ 10 each)							76,425,000. The Company has completed the extinguishment of 549,887 equity shares on July 3, 2019 which were bought back before June 27, 2019; after following the due process Persistent Systems Germany GmbH, wholly owned subsidiary of Persistent Systems Limited has entered into a Share Purchase Agreement dated June 25, 2019 to acquire 100% share
17	Reserves excluding revaluation reserves					22,655.61		capital of Youperience GmbH, a Salesforce Certified Gold Partner in Germany. As on that date, Youperience GmbH was holding 30% stake in its associate Company - Youperience Limited, United Kingdom. Balance 70% stake in the said associate has also been acquired by Persistent Systems Germany GmbH through Youperience GmbH on June 27, 2019.
18	Earnings per equity share (for continuing							4 Mr. Sanjay Kumar Bhattacharyya resigned as an Independent Director of the Company w. e.f. July 1, 2019.
	operations) in ₹						-5	Effective April 1, 2019, the Group adopted Ind AS 116 "Leases", applied to all applicable lease contracts existing on April 1, 2019 using the modified retrospective method and has taken the cumulative adjustment to retained earnings, on the date of initial application. Accordingly, comparatives for the period / year have not been retrospectively adjusted. On transition,
	- Basic		10.65	10.59	10.92	43.99		the adoption of the new standard resulted in recognition of Right-of-Use assets (ROU) of ₹722 51 million and a lease liability of ₹832 20 million. The cumulative effect of applying the standard resulted in ₹109.69 million being debited to retained earnings, net of taxes. The effect of this adoption is insignificant on the profit for the period and earnings per share.
	- Diluted		10.65	10.59	10.92	43.99		As reported in the previous quarters, Persistent Systems Limited ("the Parent Company") has deposits of ₹430 million with the financial institutions viz. Infrastructure Leasing & Financial Services Ltd. (IL&FS) and IL&FS Financial Services Ltd. (referred to as "IL&FS Group") as on the balance sheet date. The Group has not accrued any interest on these
19	Earnings per equity share (for discontinued operations) in ₹							deposits since April 1, 2018. In view of the uncertainty prevailing with respect to recovery of outstanding balances from IL&FS Group, Management of the Parent Company has provided an additional amount of ₹100.00 million during the quarter ended June 30, 2019, thereby making the total provision to ₹282.50 million for impairment in value of deposits as
	Basic							of June 30, 2019 The provision currently reflects the exposure that may arise given the uncertainty. With the resolution plan in progress, the Management of the Parent Company is hopeful of recovery though with a time lag. The Parent Company continues to monitor developments in the matter and is committed to take steps including legal action that may be
	- Diluted							necessary to ensure full recovery of the said deposits. 7 In the notice of 29th Annual General Meeting (AGM) held on July 24, 2019, the Parent Company had proposed re-appointment of M/s. Deloitte Haskins & Sells LLP, Chartered
20	Earnings per equity share (for discontinued							Accountants ('Deloitte') as the statutory auditors for a second term of two years from the date of the 29th AGM till the conclusion of 31st AGM of the Parent Company, to be held before September 30, 2021. The Parent Company has received a communication dated July 23, 2019 from Deloitte informing that if their reappointment is approved for abovementioned
	and continuing operations) in $\bar{\tau}$							term of 2 years, and not for 5 years, in their view, it will not be in accordance with the law and hence, they will not be able to accept the same. Accordingly, the Board of Directors of the
	- Basic		10.65	10.59	10 92	43.99		Parent Company has decided to identify a suitable audit firm which would be appointed as the statutory auditors of the Parent Company. In terms of Section 139(10) of the Companies Act, 2013, Deloitte shall continue to be the statutory auditor of the Parent Company until the appointment of new statutory auditors.
	- Di uted		10.65	10.59	10.92	43.99				By order of Board of Directors of Persistent Systems Limited
21	Dividend per share (in ₹)
	Interim dividend Final dividend			3		8 3	Pune	July 25, 2019		Dr. Anand Deshpande Chairman and Managing Director		Kiran Umrootkar Director
	Total dividend		$\sim$	з	$\sim$	11
								"For risks and uncertainties relating to forward-looking statements, please visit our website :- www.persistent.com"

Chartered Accountants 706, 'B' Wing, 7'h Floor ICC Trade Tower Senapati Bapat Road Pune-411 016 Maharashtra, India

Te!: +91 20 6624 4600 Fax: +91 20 6624 4605

INDEPENDENT AUDITORS' REPORT ON AUDIT OF CONSOLIDATED FINANCIAL RESULTS

TO THE BOARD OF DIRECTORS OF PERSISTENT SYSTEMS LIMITED

• 1. We have audited the accompanying Statement of interim Consolidated Financial Results of PERSISTENT SYSTEMS LIMITED ("the Parent") and its subsidiaries (the Parent and its subsidiaries together referred to as "the Group") and its associate, for the quarter ended 30 June 2019 (''the Statement"), being submitted by the Parent pursuant to the requirement of Regulation 33 of the SEBI (.Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended.
• 1. This Statement, which is the responsibility of the Parent's Management and is approved by the Parent's Board of Directors, has been compiled from the related interim condensed consolidated financial statements prepared in accordance with the recognition and measurement principles laid down in the Indian Accounting Standard 34 "Interim Financial Reporting" (Ind AS 34), prescribed under Section 133 of the Companies Act, 2013 read with relevant rules issued thereunder and other accounting principles generally accepted in India. Our responsibility is to express an opinion on the Statement based on our audit.
• 1. We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Companies Act, 2013. Those Standards require that we comply with ethical requirements and plan and perform the .audit to obtain reasonable assurance about whether the Statement is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the Statement. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the Statement, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Parent's preparation and fair presentation of the Statement in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the Parent's internal financial control with reference to the Statement. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the significant accounting estimates made by the Management, as well as evaluating the overall presentation of the Statement.

We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion.

Regd. Office: lndiabul!s Finance Centre, Tower 3, 27'" - ³²nd Floor, Senapati Bapat Marg, Elphinstone Road (West), Mumbai 400 013, Maharashtra, India. (LLP Identification No. MB-8737)

• 1. In our opinion and to the best of our information and according to the explanations given to us, and based on the consideration of the reports of the other auditors on separate financial statements of subsidiaries, associate referred to in paragraph 5 below, the Statement:
• (i) includes the results of the following entities:
• •Persistent Systems, Inc.
• •Persistent Systems Pte Limited
• •Persistent Systems France SAS
• •Persistent Telecom Solutions Inc.
• •Persistent Systems Malaysia Sdn. Bhd.
• •Aepona Holdings Limited

• •Parx Werk AG

• •Aepona Group Limited

• •Aepona Limited
• •Valista Limited
• • Persistent Systems Lanka (Private) Limited
• • Persistent Systems Mexico, S.A. de c.v.
• •Persistent Systems Israel Ltd.
• •Persistent Systems Germany GmbH
• •PARX Consulting GmbH
• (ii) is presented in accordance with the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended; and
• (iii) gives a true and fair view in conformity with the recognition and measurement principles laid down in the aforesaid Accounting Standard and other accounting principles generally accepted in India of the consolidated net profit and total comprehensive income and other financial information of the Group for the quarter ended 30 June 2019.
• 1. We did not audit the interim financial statements of 14 (fourteen) subsidiaries included in the consolidated financial results, whose interim financial statements reflect total assets of Rs. 4,893.21 Million, net total assets of Rs 2,101.98 Million as at 30 June 2019, total revenues of Rs. 1,170.26 Million, total net profit after tax of Rs. 228.36 Million and total comprehensive income of Rs. 248.99 Million for the quarter ended 30 June 2019, as considered in the statement. These financial statements have been audited by other auditors whose reports have been furnished to us by the Management and our opinion on the statement, in so far as it relates to the amounts and disclosures included in respect of these subsidiaries is based solely on the reports of the other auditors and the procedures performed by us as stated in para 3 above.
• The consolidated financial results also includes the Group's share of profit/Closs) after tax of Rs. Nil and total comprehensive income/(loss) of Rs. Nil for the quarter ended 30 June 2019, as considered in the statement, in respect of 1 (one) associate whose financial statements have not been audited by us. These financial statements are unaudited and have been furnished to us by the Management and our opinion on the Statement, in so far as it relates to the amounts and disclosures included in respect of this associate is based solely on such unaudited financial statements. In our opinion and according to the information and explanations given to us by the Management, this financial statements are not material to the Group.

Our opinion on the Statement is not modified in respect of the above matters with respect to our reliance on the financial statements certified by the Management.

For DELOITTE HASKINS & SELLS LLP

Chartered Accountants (Firm's Registration No. 117366W/W-100018)

H , M. Joshi

/ Partner (Me�b ship No. 038019) (UDIN - 190 8019AAAACA9282)

Place: Pune Date: 25 July 2019

Persistent Systems Limited

Regd. Office : Bhagestath, 402. Senapati Bapat Read. Pure 411016. India
Ph. No. +91 (20)6703.0000: Fax +91 (20)6703.0009: Email : info@persistent.com. 'www.persistent.com'. C N L72300PN1990PLC056696

Sr. No.	Particulars		Quinter ended			Year ended
			June 30, 2019 (Audited)	March 31, 2019 (audited)	June 30, 2018 (Audited)	March 31, 2019 (Audited)
ĩ	Revenue from operations		8.321.14	8,315.54	8,342.83	33.659.41
$\overline{2}$	Other income		300.36	283,96	186.75	876.55
3	Total income	$(1+2)$	8.621.50	8,602.50	8,529.56	34,535.96
$\ddot{\phantom{1}}$	Expenses
	- Employee benefits expense		4,916.25	4,859.47	4,618.37	19,249.53
	- Cost of professionals		859.82	862.83	844.68	3,400.45
	- Finance costs		18.50	1.03	0.28	3.05
	- Depreciation and amortization expense		386.17	376.80	400.81	1,372.51
	- Other expenses		1,343,15	1,389.23	1,479.37	5,357.03
	Total Expenses		7,523.89	7,489.36	7,343.31	29.672.57
5	Profit before exceptional items and tax	$(3-4)$	1,097.61	1,113.14	1.186.25	4,863.39
6	Exceptional items
7	Profit before tax	$(5-6)$	1,097.61	1,113.14	1,1\$6.25	4,863.39
8	Tax expense
	- Current tax		350.55	298.75	356.05	1.343.20
	- Tax charge / (credit) in respect of earlier years		٠	12.52	ø	88.81
	- Deferred tax charge / (credit)		(77.64)	(42.86)	(4.3.28)	(85.41)
	Total tax expense		272.93	268.41	312.77	1,346.60
9	Profit for the period/year from continuing operations	$(7-8)$	824.70	\$44.73	873.48	3,516.79
10	Profit/ {Loss} for the period/year from discontinued operations		¥.	$\overline{a}$	٠
11	Tax expense of discontinued operations			٠	٠
12	Profit/ (Loss) for the period/ year from discontinued operations (after tax)	${10-11}$	s,	s	u
13	Profit for the period/year	$(9+12)$	\$24.70	S44.73	873.43	3,516.79
14	Other comprehensive income
	A. Items that will not be reclassified to profit and loss
	- Remeasurements of the defined benefit habilities / (assets) (net of fax)		(26.37)	12.19	(13.03)	(47.15)
			(26.37)	12.19	(13.05)	(47.15)
	B. Items that may be reclassified to profit and loss
	Effective portion of rash flow hedge (net of tax)		(23.19)	115.57	(159.13)	168.43
	- Exchange differences in translating the financial statements of foreign operations		(0.63)	(58.42)	151.80	113,82
			(23.82)	57.15	(7.33)	282.25
	Total other comprehensive income for the period/year	${A+B}$	(50.19)	69.34	(20.38)	235.10
15	Total comprehensive income for the period/year (Comprising Profit/ (Loss) and Other Comprehensive Income for the period / year)	$(13+14)$	774.51	914.07	853.10	3,751.89
16	Paid-up equity share capital (Face value of share 3.10 each)		764.25	791.19	\$00.00	791.19
17	Reserves excluding revaluation reserves					22.655.61
18	Earnings per equity share (for continuing operations) in ?
	- Basic		10.65	10.59	10.92	43.99
	- Diluted		10,65	10,59	10.92	43,99
14	Earnings per equity share (for discontinued operations) in ?
	- Basic				×
	- Diluted		٠		٠
20	Earnings per equity share (for discontinued and continuing operations)
	in₹
	- Basic		10.65	10.59	10.92	43.99
	- Diluted		10,65	10.59	10.92	43.99
	Dividend per share (in ₹)
21
	Interim dividend Final dividend			n. 3	r.	8 3

And ited consolidated financial mentre of Persistent Sustains Limited for the ouverter anded June 20, 2010

s.

Persistent Systems Limited

Page1 of 3

Sharanno

Audited unconsolidated financial information

Particulars		Ouarter ended
	Tune 30, 2019 (Audited)	March 31, 2019 (Audited)	June 30, 2018 (Audited)	March 31, 2019 (Audited)
Revenue from operations	4.953.95	5.162.71	4.619.91	19,598.67
Profit before tox	1.114.73	961.69	1,205.40	4.383.76
Profit after tax	834.39	720.00	921.25	3,150.08

Segment wise Revenue, Results and Capital Employed

The Group morganised itself into three business units from April 1, 2018, which form the operating segments for segment reporting.

The operating segments are:

a. Tochnology Services

b. Alliance

c. Accelerite (Products)

Sr. No.	Particulars		Year ended
		June 30, 2019 (Audited)	March 31, 2019 (Audited)	June 30, 2018 {Audited}	March 31, 2019 (Audited)
1	Segment rovenue
	- Technology Services	5,704.51	5,741.15	5,243.17	22.018.03
	- Alliance	2,312.65	2,061.19	2.690.68	9,759.92
	- Accelerite (Freducts)	303.98	516.20	408.95	1,883.46
	Total	8,321.14	8,318.54	8,342.81	33,659.41
$\overline{\mathbf{2}}$	Less: Inter segment revenue
3	Net sales/income from operations	8,321.14	8,318.54	8,342.81	33,659.41
4	Segment results profit/ (loss) before tax, interest and depreciation and
	lamortization
	- Technology Services	2.068.09	2,339.76	1.998.56	8,507,67
	- Alliance	748,61	549.88	\$60.37	3,298.01
	- Accelerar (Products)	107.92	304.13	152.27	992,14
	Total	2,924.62	3,193.79	3,021.20	12,797.82
5	Less.
	- Finance costs	18.50	1.03	0.28	3.05
	- Other un-allocable expenses	2,108.87	2,363.58	2,021,42	8,807.93
ø.	Un-allocable income	300.36	283.96	186.75	876,55
	Total profit before tax	1,097.61	1,113.14	1,186.25	4,863.39

Segment assets [Trade receivables [net]]
	Ason
	June 30, 2019 (Audited)	March 31, 2019 (Audited)	June 30, 2018 (Audited)
- Technology Services	3,836,43	3.547.07	3,657,35
- Alliance	700.25	1.021.77	1,618.23
- Accelerite (Products)	195.50	354.17	355.04
Total allocable segment assets	4,732.18	4.923.01	5,630.63
Unallocable assets	22,935.10	23,632.98	22.242.56
Total assets	27,667.28	28,555.99	27,873.19

Note for segment wise information:

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

Segment wise capital employed

segment mess enter the than tade receivables), liabilities, depretation and amortization and other non-tash expenses into various reportable segments have not been presented as the assets (other than the economical segment individual segments and an ad-hoc allocation will not be meaningful.

Persistent Systems Limited

Page2 of 3

W.

Notes

• 1. The audited condensed consolidated financial statements for the quarter ended June 30, 2019, have been taken on record by the Board of Directors at its meeting concluded on July 25, 2019 as recommended by the Audit Committee at its meeting held on July 24, 2019. The statutory auditors have expressed an unqualified audit opinion.
• 2 The Board of Directors, in its meeting held in January 2019, approved the buyback by the Company of its fully paid-up equity shares having face value of 3 10 each. The window for buying the shares opened on February 8, 2019 and the Company has purchased 3,575,000 equity shares between February 2019 and June 2019 and has extinguished these shares after following the due process. The Company has completed the Buyback on June 27, 2019 and the total number of equity shares outstanding as on June 30, 2019 post buyback stands at 76,425,000
• The Company has completed the extinguishemnt of 549,887 equity shares on July 3, 2019 which were bought back before june 27, 2019 after following the due process,
• 3 Porsistent Systems Germany GmbH, wholly owned subsidiary of Persistent Systems Limited has entered into a Share Purchase Agreement dated lune 25, 2019 to acquire 100%. share capital of Youperience GmbH, a Salesforce Certified Gold Partner in Germany. As on that date, Youperience GmbH was holding 30% stake in its associate Company -Youpertence Limited, United Kingdom, Balance 70% stake in the said associate has also been acquired by Persistent Systems Germany GmbH through Youpertence GmbH on June 27, 2019.
• 4 Mr. Sanjay Kumar Bhattacharyya resigned as an Independent Director of the Company w.e.f. July 1, 2019.
• 5 Effective April 1, 2019, the Group adopted Ind AS 116 "Leases", applied to all applicable lease contracts existing on April 1, 2019 using the modified retrespective method and has taken the cumulative adjustment to retained earnings, on the date of initial application. Accordingly, comparatives for the period / year have not been retrospectively adjusted. On transition, the adoption of the new standard resulted in recognition of Right-of-Use asset (ROU) of § 722.51 million and a lease liability of § 832,20 million. The cumulative effect of applying the standard resulted in ₹ 109.69 million being debited to retained carnings, not of taxes. The effect of this adoption is insignificant on the profit for the period and earnings per share
• 6 As reported in the previous quarters. Persistent Systems Limited ("the Parent Company") has deposits of 8.430 million with the financial institutions viz. Infrastructure Leasing & Financial Services Ltd. (IL&FS) and IL&FS Financial Services Ltd. (referred to as "IL&FS Group") as on the balance sheet date. The Group has not accrued any interest on these deposits since April 1, 2018. In view of the uncertainty prevailing with respect to recovery of outstanding balances from IL&ES Group, Management of the Parent Company has provided an additional amount of ₹100.00 million during the quarter ended June 30, 2019, thereby making the tetal provision to ₹282.50 million for impairment in value of deposits as of June 30, 2019. The provision currently reflects the exposure that may arise given the uncertainty. With the resolution plan in progress, the Management of the Parent Company is horeful of recovery though with a time lag. The Parent Company continues to monitor developments in the matter and is committed to take steps including legal action that may be necessary to ensure full recovery of the said deposits.
• 7 In the notice of 29th Annual General Meeting (AGM) held on July 24, 2019, the Parent Company had proposed re-appointment of M/s. Deloite Haskins & Solls LLP, Chartered Accountants ('Deloitte') as the statutory auditors for a second term of two years from the date of the 29th AGM till the conclusion of 31st AGM of the Parent Company, to be held before September 30, 2021. The Parent Company has received a communication dated July 23, 2019 from Deloitte informing that if their reappointment is approved for abovementioned term of 2 years, and not for 5 years, in their view, it will not be in accordance with the law and hence, they will not be able to accept the same. Accordingly, the Board of Directors of the Parent Company has decided to identify a suitable audit firm which would be appointed as the statutory auditors of the Parent Company, in terms of Section 139(10) of the Companies Act, 2013, Deloitte shall continue to be the statutory auditor of the Pagent Company until the appointment of new statutory auditors.

$\frac{1}{2}$ аV.

By order of Board of Directors of Persistent Systems Limited

Tran Limmotkar

Dr. Anand Deshnande Chairman and Managing Director

Director

Pone July 25, 2019

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

Persistent Systems Limited

Deloitte Chartered Accountants Haskins & Sells LLP

706, '8' Wing, 7'" Floor ICC Trade Tower Senapati Bapat Road Pune-411 016 Maharashtra, India

Tel: +91 20 6624 4600 Fax: +91 20 6624 4605

INDEPENDENT AUDITOR'S REPORT ON AUDIT OF INTERIM STANDALONE FINANCIAL RESULTS

TO THE BOARD OF DIRECTORS OF PERSISTENT SYSTEMS LIMITED

• 1. We have audited the accompanying Statement of interim Standalone Financial Results of PERSISTENT SYSTEMS LIMITED ("the Company"), for the quarter ended 30 June 2019 ("the Statement"), being submitted by the Company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended.
• 1. This Statement, which is the responsibility of the Company's Management and approved by the Board of Directors, has been compiled from the related audited interim condensed standalone financial statements which has been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34 "Interim Financial Reporting" ("Ind AS 34"), prescribed under Section 133 of the Companies Act, 2013 read with relevant rules issued thereunder and other accounting principles generally accepted in India. Our responsibility is to express an opinion on the Statement based on our audit.
• 1. We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Companies Act, 2013. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the Statement is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the Statement. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the Statement, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company's preparation and fair presentation of the Statement in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the Company's internal financial control with reference to the Statement. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the significant accounting estimates made by the Management, as well as evaluating the overall presentation of the Statement.

We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion.

' �v., ' ' . ' '

• 1. In our opinion and to the best of our information and according to the explanations given to us, the Statement:
• a. is presented in accordance with the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended; and
• b. gives a true and fair view in conformity with the recognition and measurement principles laid down in the aforesaid Indian Accounting Standard and other accounting principles generally accepted in India of the net profit, total comprehensive income and other financial information of the Company for the quarter ended 30 June 2019.

For DELOITTE HASKINS & SELLS LLP

Chartered Accountants (Firm's Registration No. 117366W/W-100018)

jt.:,� Josh; ,/ Partner (Membership No. 038019) (UDIN - 19038019AAAABZ9118)

Place: Pune Date: 25 July 2019

Persistent Sysk:ms U:mi!ed

Regd. Office: Bhageerath, 402. Senapati Ba pat Road, Pune 411()16, lndw

Ph. No. +91 (20)67030000; Fax +91 (20)67030009; Email : info@persistf.'nl.com, 'www.p€'rsistent.com·. Cl:\i L72300PN1990PLC056696

Audited unconsolidati.'d financial resulls of Persistent Systems Limited for the quarter ended June 30, 2019

						in� M1ll10n
Sr. No.	Particulars			Quarter ended		Yi.'ar ended
			Jun<' 30, 2019 {Audited)	March 31, 2019 (Audited)	June 30, 2018 (Audited)	March 31. 2019 (Auditt'd)
	RevenuP from operat,ons		4,953.95	5,162.71	4,619.91	19,598 67
2	Other income		307.05	255.57	194.82	1,037.90
3	Total income	(1+2)	5,261.00	5,418.28	4,814.73	20,636.57
	Expenses
	- Employ('{' benefits expense		2,499.35	2,468.52	2,260.79	9.491.23
	-Cost of professionals		490.02	549.06	506.18	2,195.21
	- Fm,mce costs		12.45	0.12	0.11	0.51
	- Deprec1at1on and <1mortiut1on expi.'nse		137.31	114.29	117.19	458.84
	, Other expenses		1.007.14	1,324.60	725.06	4,107.02
	Total Expenses		4,146.27	4,456.59	3,609.33	16,:b'"':2.81
5	Profil before exceptional items and tax	{3-4)	1,114.73	961.69	1,205.40	4,383.76
6	Exceptional items
7	Profit before tax	(5-6)	1,114.73	961.69	1,205.40	4�"!83.76
	Tax expense
	-Current tax		338.19	301.66	340.SIJ	1,283.16
	- Tax charge/ (credit} 1n respect of earlier yeMs			15.91		65.00
	- Deferred tdX -h,irge / (credit)		(57.85)	(75.SS)	(58.65)	(114.48)
	To!a! tax expense		280.34	241.69	282.15	1,2.>3.68
9	Profit for the period/ year from continuing operations	{7-8)	834.39	720.00	92.',.25	3,150.08
10	Profit/ (Loss) for the period/ year from discontinued operations
11	Tax expense of discontinued operations
12	Profit/ (Loss) for !he period/ year from discontinued operations (after tax)	{10-11)
13	Profit for the period/ year	(9+12)	834.39	720.00	923.25	3,150.08
14	Other comprehensive income
	A. Items that w(ll not be reclassified to profit and loss
	- Remeasurem!.'nts of thr ddined benefit liabil:l1es / {assets) {net of tax}		(15.30)	4.29	(12.91)	(49.SJi
			(25.30)	4.29	(12.91)	(49.83)
	B. Items that may be redassified to profit and Joss
	- Effrctive portion of cash flow lwdge (net of tax}		(23.19)	115.57	(159.13)	16S43
			(2."l.19)	115.57	{159.13)	168.43
	Tota! other comprehensive income for the period/ year	(A+B)	(48.49)	119.86	(172.04)	118.60
15	Total compreh,:-nsive income for the period/ year (Comprising Profit (Loss) and Other Comprehensive Income for the period)	(13+14)	785.90	839.86	751.21	3,2!>8.68
16	Paid-up equ1 ty share capital		764.25	791.19	800.00	791.19
	(Facp value of sh Me Z 10 each)
17	Reserves excluding revaluation rrserves					21,420.71
18	Earnings per eq\1ity share (for continuing operations) in� · Basic		10.i7	9.03	11.54	39.40
	-01lut€'d		10.77	9.03	11.54	39.40
19	Earnings per equity share (for discontinued opera!ions) in<'
	· B,isic
	-Diluted
20	Earnings per equity share (for discontinued operations and continuing operations) in<'
	-Basic		10.77	9.03	11.54	39_.10
	-DilutE'd		10.77	9.03	11.54	39.40
21	Dividend per share (in<')
	Interim dividend
/	Final dividend
	Total di,:idend					11

Persistent Systems Limited

Page 1 of

Notes:

• 1 The audited condensed financial statements for the quarter ended June 30, 2019, have been taken on record by the Board of Directors at its meeting concluded on July 25, 2019 as recommended by the Audit Committee at its meeting held on July 24, 2019. The statutory auditors have expressed an unqualified audit opinion.
• 2 The Board of Directors, in its meeting held in January 2019, approved the buyback by the Company of its fully paid-up equity shares having face value of ₹ 10 each. The window for buying the shares opened on February 8, 2019 and the Company has purchased 3,575,000 equity shares between February 2019 and June 2019 and has extinguished these shares after following the due process. The Company has completed the Buyback on June 27, 2019 and the total number of equity shares outstanding as on June 30, 2019 post buyback stands at 76 425 000
• The Company has completed the extinguishemnt of 549.887 equity shares on july 3, 2019 which were bought back before june 27, 2019; after following the due process.
• 3 The Company's wholly owned subsidiary in Germany viz., Persistent Systems Germany GmbH has acquired 100% share capital of Youperience GmbH, a Salesforce Certified Gold Partner in Cermany. As on that date, Youperience GmbH was holding 30% stake in its associate Company - Youperience Limited, United Kingdom. Balance 70% stake in the said associate has also been acquired by Persistent Systems Germany GmbH through Youperience GmbH on June 27, 2019.
• 4 Mr. Sanjay Kumar Bhattacharyya resigned as an Independent Director of the Company w.e.f. July 1, 2019.
• 5 Effective April 1, 2019, the Company adopted Ind AS 116 "Leases", applied to all applicable lease contracts existing on April 1, 2019 using the modified retrospective method and has taken the cumulative adjustment to retained earnings, on the date of initial application. Accordingly, comparatives for the period / year have not been retrospectively adjusted. On transition, the adoption of the new standard resulted in recognition of Right-of-Use asset (ROU) of ₹ 358.91 million and a lease liability of ₹ 451.45 million. The cumulative effect of applying the standard resulted in ₹92.54 million being debited to retained earnings, net of taxes. The effect of this adoption is insignificant on the profit for the period and earnings per share
• 6 As reported in the previous quarters, the Company has deposits of ₹ 430 million with the financial institutions viz. Infrastructure Leasing & Financial Services Ltd. (IL&FS) and IL&FS Financial Services Ltd, (referred to as "IL&FS Group") as on the balance sheet date. The Company has not accrued any interest on these deposits since April 1, 2018. In view of the uncertainty prevailing with respect to recovery of outstanding balances from IL&FS Group, Management of the Company has provided an additional amount of ₹100.00 million during the quarter ended June 30, 2019, thereby making the total provision to < 282.50 million for impairment in value of deposits as of June 30, 2019. The provision currently reflects the exposure that may arise given the uncertainty. With the resolution plan in progress, the Management of the Parent Company is hopeful of recovery though with a time lag. The Company continues to monitor developments in the matter and is committed to take steps including legal action that may be necessary to ensure full recovery of the said deposits.
• 7 In the notice of 29th Annual General Meeting (AGM) held on July 24, 2019, the Company had proposed re-appointment of M/s. Deloitte Haskins & Sells LLP, Chartered Accountants ('Deloitte') as the statutory auditors for a second term of two years from the date of the 29th ACM till the conclusion of 31st ACM of the Company, to be held before September 30, 2021. The Company has received a communication dated July 23, 2019 from Deloitte informing that if their reappointment is approved for abovementioned term of 2 years, and not for 5 years, in their view, it will not be in accordance with the law and hence, they will not be able to accept the same. Accordingly, the Board of Directors of the Company has decided to identify a suitable audit firm which would be appointed as the statutory auditors of the Company. In terms of Section 139(10) of the Companies Act, 2013, Deloitte shall continue to be the statutory auditor of the Company until the appointment of new statutory auditors.

Pune July 25, 2019

By order of Board of Directors of Persistent Systems Limited

Umroofkar

Director

Dr. Anand Deshpande Chairman and Managing Director

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

40504466