Persistent Systems Limited — Interim / Quarterly Report 2021

Jul 22, 2021

NSE & BSE / 2021-22 / 59 July 22, 2021

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

Ref: Symbol: PERSISTENT

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

Ref: Scrip Code: 533179

Dear Sir/Madam,

• Sub: Outcome of the Board Meeting held on July 22, 2021 and to be continued on July 23, 2021
• Ref: Our earlier intimations under reference no. NSE & BSE / 2021-22 / 40 dated June 22, 2021 and NSE & BSE / 2021-22 / 51 dated July 13, 2021 ('Intimations')

Further to the above referred Intimations, we wish to inform that, the Board of Directors, at its meeting held through Tele-conferencing on July 22, 2021 and to be continued on July 23, 2021, has inter-alia taken the following decisions:

Approval of the Audited Financial Results for the quarter ended June 30, 2021

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, 2021 have been approved. Accordingly, we enclose the following documents:

• 1. Auditors' Report dated July 22, 2021 on the Consolidated Financial Results of the Company for the quarter ended June 30, 2021;
• 1. Consolidated Financial Results of the Company for the quarter ended June 30, 2021;
• 1. Auditors' Report dated July 22, 2021 on the Unconsolidated Financial Results of the Company for the quarter ended June 30, 2021;
• 1. Unconsolidated Financial Results of the Company for the quarter ended June 30, 2021.

Please note that the discussion on above agenda items was concluded at 2000 Hrs. (IST). Pursuant to our intimation dated July 13, 2021, the Board Meeting will continue for discussing other agenda items on Friday, July 23, 2021.

Please acknowledge the receipt.

Thanking you,

Yours Sincerely, For Persistent Systems Limited

AMIT MURARI ATRE Digitally signed by AMIT MURARI ATRE Date: 2021.07.22 20:01:36 +05'30'

Amit Atre Company Secretary ICSI Membership No.: A20507

Encl: As above

	ment wise Revenue, Results and Capital Employ

					₹ in Million
Sr.		Quarter ended			Year ended
No.	Particulars	June 30, 2021 (Audited)	March 31, 2021 (Audited)	(Audited)	June 30, 2020 March 31, 2021
1	Segment revenue				(Audited)
	- BFSI	3,792.03	3,328.54	3,153.11	12,857.05
	- Healthcare & Life Sciences	2,515.76	2,150.23	1,957.47	8,104.24
	- Technology Companies and Emerging Verticals	5,991.47	5,654.81	4,803.27	20,917.59
	Total		12,299.26 11,133.58		9,913.85 41,878.88
2	Less: Inter segment revenue
3	Net sales/income from operations	12,299.26	11,133.58	9,913.85	41,878.88
4	Segment results i.e. profit/ (loss) before tax, interest and depreciation and amortization
	- BFSI	1,348.25	1,251,66	1,049.05	4,818.38
	- Healthcare & Life Sciences	1,339.38	1,046.96	899.43	3,982.47
	- Technology Companies and Emerging Verticals	1,921.38	1,622.56	1,587.94	6,449.40
	Total	4,609.01	3,921.18		3,536.42 15,250.25
5	Less:
	- Finance costs	22.62	15.83	14.16	57.94
	- Other un-allocable expenses	2,943.90	2,456.93	2,514.09	10,175.60
6	Un-allocable income	388.03	400.36	212.27	1,077.72
7	Profit before tax	2,030.52	1,848.78	1,220,44	6,094.43
8	Segment assets				₹ in Million
	Particulars			As at
		June 30, 2021 (Audited)		June 30, 2020 (Audited)	March 31, 2021 (Audited)
	- BFSI	1,950.63		2,321.16	1,950.45
	- Healthcare & Life Sciences	1,468.70		1,640.69	1,525.69
	- Technology Companies and Emerging Verticals Total allocable segment assets	5,562.93 8,982.26		4,912.97 8,874.82	4,405.60 7,881.74
	Unallocable assets	29,382.67		23,301.52	28,773.50
	Total assets	38,364.93		32,176.34	36,655.24
	Note for segment wise information:
	Operating segments are components of an enterprise for which discrete financial information is available that is evaluated
	regularly by the chief operating decision makers, in deciding how to allocate resources and assessing performance. The Group's
	chief operating decision makers are the Chief Executive Officer and Chairman & Managing Director. Segment wise capital employed
	and the contracted constant controlleration of construction of the contracted construction of the contracted co

		----------
dited)	(Audited)	31, 2021 June 30, 2020 March 31, 2021 (Audited)		By order of Board of Directors of Persistent Systems Limited
16.58		5,561.38 24,796.08	Pune July 22, 2021	Dr. Anand Deshpande Chairman and Managing Director
0.96	1,575.48	6.680.20		"For risks and uncertainties relating to forward-looking statements, please visit our
00.72	1.214.76	5.050.86		website: www.persistent.com"

	the quarter ended June 30, 2021					₹in Million
Sr.	Particulars			Quarter ended		Year ended
٧o.			June 30, 2021 (Audited)	March 31, 2021 (Audited)	June 30, 2020 (Audited)	March 31, 2021 (Audited)
1	Income Revenue from operations (net)		12,299.26	11,133.58	9,913.85	41,878.88
2	Other income		388.03	400.36	212.27	1,077.72
3	Total income			$(1+2)$ 12,687.29 11,533.94 10,126.12 42,956.60
4	Expenses
	- Employee benefits expense		7,323.69	6,853.90	5,785.07	25,157.99
	- Cost of professionals		1,804.25	1,543.13	1,350.47	5,563.68
	- Finance costs		22.62	15.83	14.16	57.94
	- Depreciation and amortization expense		350.09	419.05	435.61	1,755.50
	- Other expenses		1,156.12	853.25	1,320.37	4,327.06
	Total Expenses		10,656.77	9,685.16		8,905.68 36,862.17
5	Profit before exceptional items	$(3-4)$	2,030.52	1,848.78	1,220.44	6,094.43
	and tax
6	Exceptional items
7	Profit before tax	$(5-6)$	2,030.52	1,848.78	1,220.44	6,094,43
8	Tax expense
	- Current tax		547.36	495.67	430.76	1,774.01
	- Tax (credit) / charge in respect of		(13.73)	3.68	8.30	10.58
	earlier years
	- Deferred tax (credit)		(15.59)	(28.16)	(118.70)	(196.93)
	Total tax expense		518.04	471.19	320.36	1,587.66
9	Profit after tax	$(7-8)$	1,512.48	1,377.59	900.08	4,506.77
10	Other comprehensive income
	A. Items that will not be
	reclassified to profit and loss
	- Remeasurements of the defined		(61.72)	24.52	9.24	10.25
	benefit liabilities / assets (net of tax)
			(61.72)	24.52	9.24	10.25
	B. Items that may be reclassified to
	profit and loss
	- Effective portion of cash flow hedge		(95.10)	(53.45)	149.98	383.54
	(net of tax)
	- Exchange differences in translating		128.31	120.35	77.05	(20.07)
	the financial statements of foreign
	operations
			33.21	66.90	227.03	363.47
	Total other comprehensive income	$(A+B)$	(28.51)	91.42	236.27	373.72
	for the period / year
11	Total comprehensive income for the	$(9+10)$	1,483.97	1,469.01	1,136.35	4,880.49
	period / year (Comprising Profit /
	(Loss) and Other Comprehensive
	Income for the period / year)
12	Paid-up equity share capital		764.25	764.25	764.25	764.25
	(Face value of share ₹ 10 each)
13	Other equity excluding revaluation					27,192.41
	reserves
14	Earnings per equity share (in $\bar{z}$ )
	(Face value of share ₹ 10 each)
	- Basic		19.79	18.03	11.78	58.97
	- Diluted		19.79	18.03	11.78	58.97
15	Dividend per share (in $\bar{z}$ )
	(Nominal value per share ₹10)
	- Interim dividend					14.00
	- Final dividend			6.00		6.00
	Total dividend			6.00		20.00
	Audited unconsolidated financial information					₹ in Million
				Quarter ended		Year ended
Sr.	Particulars			June 30, 2021 March 31, 2021 June 30, 2020 March 31, 2021

Persistent

Walker Chandiok & Co LLP

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

to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended)

To the Board of Directors of Persistent Systems Limited

Opinion

• 1. Persistent Systems Limited and its subsidiaries (the Holding Company and its 30 June 2021, attached herewith, being submitted by the Holding Company pursuant to the requirements of Regulation 33 of
• 1. In our opinion and to the best of our information and according to the explanations given to us and based on the consideration of the reports of other auditors on separate audited financial statements of the subsidiaries as referred in para 12 below, the Statement:
• (i) includes the quarterly financial results of the entities listed in Annexure 1;
• (ii) presents financial results in accordance with the requirements of Regulation 33 of the Listing Regulations and
• (iii) prescribed under Sec thereunder, and other accounting principles generally accepted in India, of the consolidated net profit after tax and other comprehensive income and other financial information of the Group and its associate for the quarter ended 30 June 2021

Basis for Opinion

1. of the Act. Our responsibilities under those standards are further described in the Audit of the Statement section of our report. We are independent of the Group and its associate, in together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act, and the rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence obtained by us and that obtained by the other auditors in terms of their reports referred to in paragraph 12 of the Other Matter section below, is sufficient and appropriate to provide a basis for our opinion.

Page 1 of 5

Circle, New Delhi, 110001, India

Chartered Accountants

Persistent Systems Limited to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended)

Responsibilities of Management and Those Charged with Governance for the Statement

• 1. the Holding Company's Board of Directors, has been prepared on the basis of the consolidated quarterly audite presentation of the Statement that gives a true and fair view of the consolidated net profit or loss after tax and other comprehensive income, and other financial information of the Group including its associate accordance with the accounting principles generally accepted in India, including the Ind AS prescribed under section 133 of the Act, read with relevant rules issued thereunder and other accounting principles generally accepted in Directors is also responsible for ensuring accuracy of records including financial information considered necessary for the preparation of the Statement. Further, in terms of the provisions of the Act, the respective Board of Directors of the companies included in the Group and its associate, are responsible for maintenance of adequate accounting records in accordance with the provisions of the Act, for safeguarding of the assets of the Group, and its associate, and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively, for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial results, that give a true and fair view and are free from material misstatement, whether due to fraud or error. These financial results have been used for the purpose of preparation of the Statement by the Directors of the Holding Company, as aforesaid.
• 1. In preparing the Statement, the respective Board of Directors of the companies included in the Group and of its associate, are responsible for assessing the ability of the Group and of its associate to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting, unless the respective Board of Directors either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.
• 1. The respective Board of Directors of the companies included in the Group and of its associate,are responsible for overseeing the financial reporting process of the companies included in the Group and of its associate.

dit of the Statement

• 1. Our objectives are to obtain reasonable assurance about whether the Statement as a whole is free from Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with Standards on Auditing, specified under section 143(10) of the Act, will always detect a material misstatement, when it exists. Misstatements can arise from fraud or error, and are considered material if, individually, or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this Statement.
• 1. As part of an audit in accordance with the Standards on Auditing, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the Statement, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Page 2 of 5

Chartered Accountants

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

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

to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended)

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the management.
• accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of the Group and its associates, to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our continue as a going concern.
• Evaluate the overall presentation, structure and content of the Statement, including the disclosures, and whether the Statement represents the underlying transactions and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial statements of the entities within the Group, and its associates, to express an opinion on the Statement. We are responsible for the direction, supervision and performance of the audit of financial information of such entities included in the Statement, of which we are the independent auditors. For the other entities included in the Statement, which have been audited by the other auditors, such other auditors remain responsible for the direction, supervision and performance of the audits carried out by them. We remain solely responsible for our audit opinion.
• 1. We communicate with those charged with governance of the Holding Company and such other entities included in the Statement, of which we are the independent auditors, regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
• 1. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
• 1. We also performed procedures in accordance with SEBI Circular CIR/CFD/CMD1/44/2019 dated 29 March 2019, issued by the SEBI under Regulation 33 (8) of the Listing Regulations, to the extent applicable.

Other Matter(s)

1. We did not audit the annual financial statements of Nineteen subsidiaries included in the Statement, whose total revenues of 126.40 Million, statements have been audited by other auditors whose audit reports have been furnished to us by the management, and our opinion in so far as it relates to the amounts and disclosures included in respect of these subsidiaries is based solely on the audit reports of such other auditors, and the procedures performed by us as stated in paragraph 3 above.

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

Page 3 of 5

Chartered Accountants

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

to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended)

1. quarter ended 30 June 2021, in respect of one associate, based on their annual financial statements, which have not been audited by their auditors. These financial statements have been furnished to far as it relates to the amounts and disclosures included in respect of aforesaid 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, these financial statements are not material to the Group.

Our opinion is not modified in respect of this matters with respect to our reliance on the financial statements certified by the Board of Directors.

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

Shashi Tadwalkar Partner Membership No:101797

UDIN:21101797AAAABT4332

Place: Pune Date: 22 July 2021

Page 4 of 5

Chartered Accountants

to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended)

Annexure 1

List of entities included in the Statement

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

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

Registered Office : Bhageerath, 402, Senapati Bapat Road, Pune 411016, India

Ph. No. +91(20)67030000; Fax +91(20)67030009; Email : info@persistent.com, 'www.persistent.com'. CIN L72300PN1990PLC056696

Audited consolidated financial results of Persistent Systems Limited for the quarter ended June 30, 2021

						in Million
Sr.	Particulars			Quarter ended		Year ended
No.			June 30, 2021 (Audited)	March 31, 2021 (Audited)	June 30, 2020 (Audited)	March 31, 2021 (Audited)
	Income
1	Revenue from operations (net)		12,299.26	11,133.58	9,913.85	41,878.88
2	Other income		388.03	400.36	212.27	1,077.72
3	Total income	(1+2)	12,687.29	11,533.94	10,126.12	42,956.60
4	Expenses
	- Employee benefits expense		7,323.69	6,853.90	5,785.07	25,157.99
	- Cost of professionals		1,804.25	1,543.13	1,350.47	5,563.68
	- Finance costs		22.62	15.83	14.16	57.94
	- Depreciation and amortization expense		350.09	419.05	435.61	1,755.50
	- Other expenses		1,156.12	853.25	1,320.37	4,327.06
	Total Expenses		10,656.77	9,685.16	8,905.68	36,862.17
5	Profit before exceptional items and tax	(3-4)	2,030.52	1,848.78	1,220.44	6,094.43
6	Exceptional items		-	-	-	-
7	Profit before tax	(5-6)	2,030.52	1,848.78	1,220.44	6,094.43
8	Tax expense
	- Current tax		547.36	495.67	430.76	1,774.01
	- Tax charge / (credit) in respect of earlier		(13.73)	3.68	8.30	10.58
	- Deferred tax charge / (credit)		(15.59)	(28.16)	(118.70)	(196.93)
			518.04
	Total tax expense			471.19	320.36	1,587.66
9	Profit for the period / year	(7-8)	1,512.48	1,377.59	900.08	4,506.77
	10 Other comprehensive income
	A. Items that will not be reclassified to profit and loss
	- Remeasurements of the defined benefit liabilities / assets (net of tax)		(61.72)	24.52	9.24	10.25
			(61.72)	24.52	9.24	10.25
	B. Items that may be reclassified to profit and loss
	- Effective portion of cash flow hedge (net of tax)		(95.10)	(53.45)	149.98	383.54
	- Exchange differences in translating the financial statements of foreign operations		128.31	120.35	77.05	(20.07)
			33.21	66.90	227.03	363.47
	Total other comprehensive income for the period / year	(A+B)	(28.51)	91.42	236.27	373.72
	11 Total comprehensive income for the period / year (Comprising Profit / (Loss) and Other	(9+10)	1,483.97	1,469.01	1,136.35	4,880.49
	Comprehensive Income for the period / year)
12	Paid-up equity share capital (Face value of share 10 each)		764.25	764.25	764.25	764.25
13	Other equity excluding revaluation reserves					27,192.41
	14 Earnings per equity share in (Face value of share 10 each)
	- Basic		19.79	18.03	11.78	58.97
	- Diluted		19.79	18.03	11.78	58.97
	15 Dividend per share (in ) (Nominal value per share 10)
	Interim dividend Final dividend		- -	- 6.00	- -	14.00 6.00
	Total dividend		-	6.00	-	20.00

Audited unconsolidated financial information

				in Million
Particulars		Year ended
	June 30, 2021 (Audited)	March 31, 2021 (Audited)	June 30, 2020 (Audited)	March 31, 2021 (Audited)
Revenue from operations (net)	7,648.34	6,846.58	5,561.38	24,796.08
Profit before tax	2,209.87	1,900.96	1,575.48	6,680.20
Profit after tax	1,660.95	1,400.72	1,214.76	5,050.86

Segment wise Revenue, Results and Capital Employed

Considering the focus on industry verticals, the Group has decided to reorganize its operating segments from April 1, 2020.

a. Banking, Financial Services and Insurance (BFSI)

b. Healthcare & Life Sciences

c. Technology Companies and Emerging Verticals

					in Million
Sr.	Particulars		Quarter ended		Year ended
No.		June 30, 2021	March 31, 2021	June 30, 2020	June 30, 2021
		(Audited)	(Audited)	(Audited)	(Audited)
1	Segment revenue
	- BFSI	3,792.03	3,328.54	3,153.11	12,857.05
	- Healthcare & Life Sciences	2,515.76	2,150.23	1,957.47	8,104.24
	- Technology Companies and	5,991.47	5,654.81	4,803.27	20,917.59
	Emerging Verticals
	Total	12,299.26	11,133.58	9,913.85	41,878.88
2	Less: Inter segment revenue	-	-	-	-
3	Net sales/income from operations	12,299.26	11,133.58	9,913.85	41,878.88
4	Segment results i.e. profit/ (loss) before tax,
	interest and depreciation and amortization
	- BFSI	1,348.25	1,251.66	1,049.05	4,818.38
	- Healthcare & Life Sciences	1,339.38	1,046.96	899.43	3,982.47
	- Technology Companies and	1,921.38	1,622.56	1,587.94	6,449.40
	Total	4,609.01	3,921.18	3,536.42	15,250.25
5	Less:
	- Finance costs	22.62	15.83	14.16	57.94
	- Other un-allocable expenses Un-allocable income	2,943.90 388.03	2,456.93	2,514.09	10,175.60
6 7	Profit before tax	2,030.52	400.36 1,848.78	212.27 1,220.44	1,077.72 6,094.43
8	Segment assets				in Million
				As on
			June 30, 2021	June 30, 2020	March 31, 2021
			(Audited)	(Audited)	(Audited)

- BFSI	1,950.63	2,321.16	1,950.45
- Healthcare & Life Sciences	1,468.70	1,640.69	1,525.69
- Technology Companies and Emerging Verticals	5,562.93	4,912.97	4,405.60
Total allocable segment assets	8,982.26	8,874.82	7,881.74
Unallocable assets	29,382.67	23,301.52	28,773.50
Total assets	38,364.93	32,176.34	36,655.24

Note for segment wise information:

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

Segment wise capital employed

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

Notes:

• 1 The audited condensed consolidated financial statements for the quarter ended June 30, 2021, have been taken on record by the Board of Directors at its meeting concluded on July 22, 2021 as recommended by the Audit Committee at its meeting held on July 20, 2021. The statutory auditors have expressed an unqualified audit opinion. The information presented above is extracted from the audited condensed interim consolidated financial statements.
• 2 The above consolidated financial results have been prepared from the condensed interim consolidated financial statements, which are prepared in accordance with Indian Accounting Standards ("Ind AS"), the provisions of the Companies Act, 2013 ("the Companies Act"), as applicable and guidelines issued by the Securities and Exchange Board of India ("SEBI"). The Ind AS are prescribed under Section 133 of the Companies Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and amendments issued thereafter. All amounts included in the consolidated financial results (including notes) are reported in millions of Indian rupees ( in millions) except share and per share data, unless otherwise stated.
• 3 The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the company towards Provident Fund and Gratuity. The Ministry of Labour and Employment has released draft rules for the Code on Social Security, 2020 on November 13, 2020, and has invited suggestions from stakeholders which are under active consideration by the Ministry. The Company will assess the impact and its evaluation once the subject rules are notified and will give appropriate impact in its financial statements in the period in which, the Code becomes effective and the related rules to determine the financial impact are published.
• 4 The investors are requested to visit the following website of the Company and Stock Exchanges for further details:

By order of Board of Directors of Persistent Systems Limited

Pune Dr. Anand Deshpande Date : July 22, 2021 Chairman and Managing Director

Walker Chandiok & Co LLP

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

Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended)

To the Board of Directors of Persistent Systems Limited

Opinion

• 1. Persistent Systems Limited for the quarter ended 30 June 2021 being submitted by the Company pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure the SEBI from time to time.
• 1. In our opinion and to the best of our information and according to the explanations given to us, the Statement:
• (i) is presented in accordance with the requirements of Regulation 33 of the Listing Regulations, read with SEBI Circular CIR/CFD/FAC/62/2016 dated 5 July 2016 and
• (ii) gives a true and fair view in conformity with the recognition and measurement principles laid down in the th relevant rules issued thereunder and other accounting principles generally accepted in India of the unconsolidated net profit after tax (including other comprehensive income) and other financial information of the Company for the quarter ended 30 June 2021.

Basis for Opinion

1. those standards are further described in the section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India the provisions of the Act and the rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence obtained by us, is sufficient and appropriate to provide a basis for our opinion.

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

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

Chartered Accountants

Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended)

Statement

• 1. This Statement has been prepared on the basis of the interim Standalone financial Statements. and fair view of the net profit/loss and other comprehensive income and other financial information in accordance with the recognition and measurement principles laid down in Ind AS 34 prescribed under Section 133 of the Act read with relevant rules issued thereunder and other accounting principles generally accepted in India and in compliance with Regulation 33 of the Listing Regulations including SEBI Circular. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Statement that give a true and fair view and are free from material misstatement, whether due to fraud or error.
• 1. continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
• 1. The Board of Directors are also
• 1. Our objectives are to obtain reasonable assurance about whether the Statement as a whole is free from material misstatement, w opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this Statement.
• 1. As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the Statement, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Management.

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Chartered Accountants

Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended)

• Conclude on the appropriateness of the Management use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or If we conclude that a m report to the related disclosures in the financial results or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtaine report. However, future events or conditions may cause the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the statement, including the disclosures, and whether the statement represent the underlying transactions and events in a manner that achieves fair presentation.
• 1. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
• 1. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

For Walker Chandiok & Co LLP

Chartered Accountants Firm Registration No:001076N/N500013

Shashi Tadwalkar Partner Membership No:101797

UDIN:21101797AAAABS2293

Place: Pune Date: 22 July 2021

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Chartered Accountants

						(In ₹ Million)
Sr. No.	Particulars	Quarter ended			Year ended
			June 30, 2021 (Audited)	March 31, 2021 (Audited)	June 30, 2020 (Audited)	March 31, 2021 (Audited)
	Income
1	Revenue from operations (net)		7,648.34	6,846.58	5,561.38	24,796.08
$\overline{2}$	Other income		344.68	349.75	293.76	1.176.16
3	Total income	$(1+2)$	7,993.02	7,196.33	5,855.14	25,972.24
$\overline{4}$	Expenses
	- Employee benefits expense		4,441.54	4,071.22	3,057.26	14.093.21
	- Cost of professionals		337.25	464.79	377.70	1,775.07
	- Finance costs		18.50	11.21	8.79	38.21
	- Depreciation and amortization expense		162.71	155.52	131.81	566.79
	- Other expenses		823.15	592.63	704.10	2,818.76
	Total Expenses		5,783.15	5,295.37	4,279.66	19,292.04
5	Profit before exceptional items and tax	$(3-4)$	2,209.87	1,900.96	1,575.48	6,680.20
6	Exceptional items
7	Profit before tax	$(5-6)$	2,209.87	1,900.96	1,575.48	6,680.20
8	Tax expense
	- Current tax		537.22	468.18	409.97	1.684.00
	- Tax charge / (credit) in respect of earlier years			ä,	2.74	2.74
	- Deferred tax charge / (credit)		11.70	32.06	(51.99)	(57.40)
	Total tax expense		548.92	500.24	360.72	1,629.34
9	Profit for the period / year	$(7-8)$	1,660.95	1,400.72	1,214.76	5.050.86
10	Other comprehensive income
	A. Items that will not be reclassified to profit and loss
	Remeasurements of the defined benefit asset / liabilities (net of tax)		(58.30)	24.56	17.73	15.93
			(58.30)	24.56	17.73	15.93
	B. Items that may be reclassified to profit and loss
	Effective portion of cash flow hedge (net of tax)		(95.11)	(53.44)	149.98	383.55
			(95.11)	(53.44)	149.98	383.55
	Total other comprehensive income for the period / year	$(A+B)$	(153.41)	(28.88)	167.71	399.48
11	Total comprehensive income for the period / year (Comprising Profit (Loss) and Other Comprehensive Income for the period)	$(9+10)$	1,507.54	1,371.84	1,382.47	5,450.34
12	Paid-up equity share capital		764.25	764.25	764.25	764.25
	(Face value of share ₹10 each)
13	Other equity excluding revaluation reserves					26,890.99
14	Earnings per equity share in ₹ (Face value of share ₹ 10 each)
	- Basic		21.73	18.33	15.89	66.09
	- Diluted		21.73	18.33	15.89	66.09
15	Dividend per share (in ₹) (Nominal value of share ₹ 10 each)
	Interim dividend					14.00
	Final dividend			6.00		6.00
	Total dividend		$\overline{a}$	6.00	$\overline{a}$	20.00