NSE & BSE / 2022-23 / 117

October 19, 2022

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

Ref: Symbol: PERSISTENT

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

Ref: Scrip Code: 533179

Dear Sir/Madam,

Sub: Audited Financial Statements for the quarter and half year ended September 30, 2022

We wish to inform you that the Board of Directors at its meeting held on October 19, 2022, has approved the Audited Financial Statements for the quarter and half year ended September 30, 2022.

Accordingly, please find enclosed the following documents:

1. Audited Consolidated Financial Statements for the quarter and half year ended September 30, 2022; and
1. Audited Unconsolidated Financial Statements for the quarter and half year ended September 30, 2022.

Please acknowledge the receipt.

Thanking you,

Yours Sincerely, For Persistent Systems Limited

Amit Murari Atre Digitally signed by Amit Murari Atre Date: 2022.10.19 19:45:48 +05'30'

Amit Atre Company Secretary ICSI Membership No.: A20507

Encl: As above

Walker Chandiok & Co LLP

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

Independent Auditor's Report on the Audit of the Condensed Interim Consolidated Financial Statements for the quarter and half year ended 30 September 2022

To the Board of Directors of Persistent Systems Limited

Opinion

1. We have audited the accompanying condensed interim consolidated financial statements of Persistent Systems Limited ('the Holding Company') and its subsidiaries (the Holding Company and its subsidiaries together referred to as 'the Group'), as listed in Annexure 1, which comprise the Condensed Consolidated Balance Sheet as at 30 September 2022, the Condensed Interim Consolidated Statement of Profit and Loss (including Other Comprehensive Income) for quarter and half year ended on that date, the Condensed Consolidated Statement of Cash Flows and the Condensed Consolidated Statement of Changes in Equity for the half year ended on that date, and a summary of the significant accounting policies and other explanatory information.
1. In our opinion and to the best of our information and according to the explanations given to us and based on the consideration of the reports of the other auditors on separate condensed interim financial statements of the subsidiaries, the aforesaid condensed interim consolidated financial statements give the information required by the Companies Act, 2013 ('the Act') in the manner so required and give a true and fair view in accordance with Indian Accounting Standard 34, Interim Financial Reporting ('Ind AS 34') specified under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015 (as amended), and other generally accepted accounting principles in India, of the consolidated state of affairs of the Group as at 30 September 2022, its consolidated profit (including other comprehensive income) for the quarter and half year ended on that date, its consolidated cash flows and the consolidated changes in equity for the half year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Our responsibilities under those standards are further described in the 'Auditor's Responsibilities for the Audit of the condensed interim consolidated financial statements' section of our report. We are independent of the Group in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India ('ICAI') together with the ethical requirements that are relevant to our audit of the condensed interim consolidated financial statements under the provisions of the Act and the rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained and the audit evidence obtained by the other auditors in terms of their reports referred to in paragraph 11 of the Other Matters section below is sufficient and appropriate to provide a basis for our opinion.

Page 1 of 5

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

Independent Auditor's Report on the Audit of the Condensed Interim Consolidated Financial Statements for the quarter and half year ended 30 September 2022

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

1. The accompanying condensed interim consolidated financial statements have been approved by the Holding Company's Board of Directors. The Holding Company's Board of Directors is responsible for the matters stated in Section 134(5) of the Act with respect to the preparation and presentation of these condensed interim consolidated financial statements that give a true and fair view of the consolidated financial position, consolidated financial performance including other comprehensive income, consolidated cash flows and consolidated changes in equity of the Group in accordance with Ind AS 34 specified under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015 and other generally accepted accounting principles in India. The respective Board of Directors of the companies included in the Group are responsible for maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Group 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 statements that give a true and fair view and are free from material misstatement, whether due to fraud or error, which have been used for the purpose of preparation of the condensed interim consolidated financial statements by the Board of Directors of the Holding Company, as aforesaid.
1. In preparing the condensed interim consolidated financial statements, the respective Board of Directors of the companies included in the Group are responsible for assessing the ability of the Group to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intend to liquidate the Group or to cease operations, or has no realistic alternative but to do so.
1. Those respective Board of Directors are also responsible for overseeing the financial reporting process of the companies included in the Group.

Auditor's Responsibilities for the Audit of the Condensed Interim Consolidated Financial Statements

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

Page 2 of 5

Chartered Accountants

Independent Auditor's Report on the Audit of the Condensed Interim Consolidated Financial Statements for the quarter and half year ended 30 September 2022

x 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 Holding Company has in place an adequate internal financial controls with reference to financial statements and the operating effectiveness of such controls.
x Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
x Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of the Group to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the condensed interim consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group to cease to continue as a going concern.
x Evaluate the overall presentation, structure and content of the condensed interim consolidated financial statements, including the disclosures, and whether the condensed interim consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
x Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the condensed interim consolidated financial statements. We are responsible for the direction, supervision, and performance of the audit of the condensed interim consolidated financial statements of such entities included in the condensed interim consolidated financial statements, of which we are the independent auditors. For the other entities included in the condensed interim consolidated financial statements, which have been audited by the other auditors, such other auditors remain responsible for the direction, supervision and performance of the audits carried out by them. We remain solely responsible for our audit opinion.
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.

This space has been intentionally left blank

Page 3 of 5

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

Persistent Systems Limited Independent Auditor's Report on the Audit of the Condensed Interim Consolidated Financial Statements for the quarter and half year ended 30 September 2022

Other Matters

We did not audit the condensed interim financial statements of twenty nine subsidiaries, whose condensed interim financial statements (before eliminating intercompany balances/transactions) reflect total assets of 12,613.91 million and net assets of 2,992.51 as at 30 September 2022, total revenues of 4,923.57 million and net cash flows amounting to (339.29) million for the half year ended on that date, as considered in the condensed interim consolidated financial statements, whose financial statements have not been audited by us. These financial statements have been audited by other auditors whose reports have been furnished to us by the management and our opinion on the condensed interim consolidated financial statements, in so far as it relates to the amounts and disclosures included in respect of these subsidiaries, is based solely on the reports of the other auditors.

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

For Walker Chandiok & Co LLP

Chartered Accountants Firm's Registration No:001076N/N500013

SHASHI TADWALKAR Digitally signed by SHASHI TADWALKAR Date: 2022.10.19 19:17:47 +05'30'

Shashi Tadwalkar Partner Membership No:101797

UDIN:22101797BAGBOU7660

Place: Pune Date: 19 October 2022

Page 4 of 5

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

Independent Auditor's Report on the Audit of the Condensed Interim Consolidated Financial Statements for the quarter and half year ended 30 September 2022

Annexure 1

List of entities included in condensed interim consolidated financial statements

Sr. No.	Name of Entity	Relationship
1	Persistent Systems Limited (PSL)	Holding Company
2	Persistent Systems, Inc. (PSI)	Wholly owned subsidiary of PSL
3	Persistent Systems Pte Ltd.	Wholly owned subsidiary of PSL
4	Persistent Systems France SAS	Wholly owned subsidiary of PSL
5	Persistent Systems Malaysia Sdn. Bhd.	Wholly owned subsidiary of PSL
6	Persistent Systems Germany GmbH (PSGG)	Wholly owned subsidiary of PSL
7	Persistent Telecom Solutions Inc.	Wholly owned subsidiary of PSI
8	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	Persistent Systems Switzerland AG (Formerly known as PARX Werk AG)	Wholly owned subsidiary of PSGG
16	PARX Consulting GmbH	Wholly owned subsidiary of Persistent
		Systems Switzerland AG
17	Capiot Software Private Limited	Wholly owned subsidiary of PSL
18	Capiot Software Inc. (Capiot US)	Wholly owned subsidiary of PSI
19	Capiot Software Pty Limited	Wholly owned subsidiary of Capiot US
20	Capiot Software Pte Limited	Wholly owned subsidiary of Capiot US
21	Persistent Systems S.R.L.	Wholly owned subsidiary of PSI
22	Software Corporation International	Wholly owned subsidiary of PSI
23	SCI Fusion360 LLC	Wholly owned subsidiary of PSI
24	Data Glove IT Solutions Limitada	Wholly owned subsidiary of PSGG
25	Persistent Systems S.r.l.	Wholly owned subsidiary of PSGG
	(Formed we.f. June 17,2022)
26	MediaAgility Inc.(MAI)	Wholly owned subsidiary of PSI
	(Acquired w.e.f. May 4,2022)
27	MediaAgility Pte. Ltd.	Wholly owned subsidiary of MAI
	(Acquired w.e.f. May 4,2022)
28	MediaAgility UK Ltd.	Wholly owned subsidiary of MAI
	(Acquired w.e.f. May 4,2022)
29	Digitalagility S de RL de CV	Wholly owned subsidiary of MAI
	(Acquired w.e.f. May 4,2022)
30	MediaAgility India Private Limited (Acquired	Wholly owned subsidiary of PSL
31	w.e.f. April 29,2022) PSPL ESOP Management Trust (Controlled	Controlled ESOP Trust
	w.e.f. April 1, 2022)

Page 5 of 5

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

	Notes	As at	As at	As at
		September 30, 2022	September 30, 2021	March 31, 2022
		In ₹ Million	In ₹ Million	In ₹ Million
ASSETS
Non-current assets
Property, plant and equipment	5.1	3,300.14	2,785.17	291767
Capital work in progress		1,164.01	7.57	1,071.20
Right of use assets	5.2	2,138.00	1,054.83	1,358.21
Goodwill	5,3	3,248.07	108 79	2,790.22
Other Intangible assets	5.4	12,963.47	1,192.79	8,269.63
Financial assets		22,813.69	5,149.15	16,406.93
- Investments	6	4,438.64	3,871.73	3,877.72
- Loans	$\overline{7}$		1,880.00	3,522.00
- Other non-current financial assets	8	672.48	225.49	340.74
Deferred tax assets (net)	9	1,265.70	1,065.25	1,122.72
Other non-current assets	10	1,252.42	1,513.36	531.61
		30,442.93	13,704.98	25,801.72
Current assets
Financial assets
- Investments	11	2,086.50	3,144.89	4,346.91
- Trade receivables (net)	12	13,238.51	6,515.21	9,484.29
- Cash and cash equivalents	13	4,407.37	5,176.54	2,977.99
- Bank balances other than cash and cash equivalents	14	4,450 52	6,469.83	6,166.59
- Loans	15 16	٠ 4,536.56	3.214.99
- Other current financial assets Current tax assets (net)		175.28	283.09	3,231.00 179.57
Other current assets	17	2,772.27	1,851.23	1,952.90
		31,667.01	26,655.78	28,339.25
TOTAL		62,109.94	40,360.76	54,140.97

EQUITY AND LIABILITIES
EQUITY
Equity share capital	18	764.25	764 25	764.25
Other equity		34,481.03	30,170.18	32,917.95
		35,245.28	30,934.43	33,682.20
LIABILITIES
Non-current liabilities
Financial liabilities
- Borrowings	19	3,067.10	43.34	2,800.79
- Lease liabilities	20	1,570 47	897 95	1,114.29
- Other financial liabilities Provisions	23 21	2,436.43 354 71	268.22	2,088.60 245.54
		7,428.71	1,209.51	6,249.22

Current liabilities
Financial liabilities
-Borrowings	19	2.274.73	1.85	1,524.56
- Lease liabilities - Trade payables	20 22	606.01	250.96	342.58
- Total outstanding dues of micro and small enterprises		17.21	45.55	10.30
- Total outstanding dues of creditors other than micro and small enterprises		5,818.97	3,434.33	4,288.41
- Other financial liabilities	23	4,357.60	167.82	2,173.60
Other current liabilities	24	2,348.31	1,698.57	1,571.72
Provisions	25	3,554.33	2,278.68	3,949.66
Current tax liabilities (net)		458.79 19,435.95	339.06 8,216.82	348.72 14,209.55

TOTAL		62,109.94	40,360.76	54,140.97
Summary of significant accounting policies	$\overline{4}$
The accompanying notes are an integral part of the condensed interim consolidated financial statements.
As per our report of even date

SHASHI TADWALKAR Digitally signed by SHASHI TADWALKAR Date: 2022.10.19 19:18:39 +05'30'

	Notes		For the quarter ended	For the half year ended		For the year ended
		September 30, 2022	September 30, 2021	September 30, 2022	September 30, 2021	March 31, 2022
		In ₹ Million	In ₹ Million	In ₹ Million	In ₹ Million	In ₹ Million
Income
Revenue from operations (net)	26	20,486 41	13.512.49	39.267.52	25.81175	57.107.46
Other income	27	80.55	324 15	290.33	712.18	1,439,55
Total income (A)		20,566.96	13,836,64	39,557.85	26,523.93	58,547.01
Expenses
Employee benefits expense	28.1	12,371.20	8.092.37	23,477.89	15,416.06	34,593.10
Cost of professionals	28.2	2,638.00	1.999 54	5.240.82	3,803.79	7.974 18
Finance costs (refer note 37)		111.08	20.94	189.91	43.56	118 35
Depreciation and amortization expense	6.5	693 07	370.83	1,338,19	720 92	1.660.12
Other expenses	29	1,797.57	1.176.64	3,536.25	2,332.76	4,958.47
Total expenses (B)		17,610.92	11,660,32	33,783.06	22,317.09	49,304.22
Profit before tax (A B)		2,956.04	2,176.32	5,774.79	4,206.84	9,242.79

Tax expense
Current tax		727.28	538.63	1,420,73	1.085.99	2.322.85
Tax charge in respect of earlier periods/ years		7.31	(3.88)	7.31	(17.61)	42.57
Deferred tax credit		21.31	24.04	30.49	8.45	(26.49)
Total tax expense		755.90	558.79	1,458,53	1,076.83	2,338.93
Net profit for the period/ year (C)		2.200.14	1.617.53	4.316.26	3.130.01	6,903.86
Other comprehensive income
Items that will not be reclassified to profit or loss (D)
- Remeasurements of the defined benefit liabilities / asset		(23.95)	(51.50)	44.36	(132.96)	(248.05)
- Income tax effect on above		5.75	13.13	(10.36)	32.87	64 18
		(18.20)	(38.37)	34.00	(100.09)	(183.87)
Items that may be reclassified to profit or loss (E)
- Effective portion of cash flow hedge		(178.81)	29.55	(462.84)	(97.54)	(130.49)
- Income tax effect on above		45.01	(7.44)	116.49	24.55	32.84
- Exchange differences in translating the financial statements of foreign operations		308.50	(13.58)	464 50	114.73	138.96
		174 70	8.53	118.15	4174	41.31
Total other comprehensive income for the period/year (D) + (E)		156,50	(29.84)	152.15	(58, 35)	(142.56)

Total comprehensive income for the period/year (C) $+$ (D) $+$ (E)		2,356.64	1,587.69	4,468.41	3,071.66	6,761.30
Earnings per equity share [Nominal value of share ₹10 (Previous year: ₹10)]	30

Basic (In ₹)		29.61	21.16	58.15	40.96	90.34
Diluted (In ₹)		28.79	21 16	56.48	40.96	90 34
Summary of significant accounting policies	4

CONDENSED INTERIM CONSOLIDATED STATEMENT OF PROFIT AND LOSS FOR THE QUARTER AND HALF YEAR ENDED SEPTEMBER 30, 2022

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

As per our report of even date

For Walker Chandiok & Co LLP Chartered Accountants Firm Registration No: 001076N/N500013	For and on behalf of the Board of Directors of Persistent Systems Limited	Sandeep Kalra
Digitally signed by SHASHI SHASHI TADWALKAR Date: 2022.10.19 TADWALKAR 19:19:03 +05'30'	Anand Deshpande	Sandeep Kalra (Oct 49, 2022 16:19 GMT+5.5) Digitally signed by Praveen Prayeen Purushottam Purushottam Kadle Date: 2022.10.19 Kadle 17:02:48 + 05'30"
Shashi Tadwalkar Partner	Dr. Anand Deshpande Chairman and Managing Director	Praveen Kadle Sandeep Kara Executive Director and Independent Director Chief Executive Officer
Membership No.: 101797	DIN: 00005721	DIN: 02506494 DIN: 00016814
	Place: Pune Date: October 19, 2022	Place: Pune Place: Pune Date: October 19, 202, Date: October 19, 2022
Sunil Sapre		Amit Atre
	Sunil Sapre (Oct 19, 2022 16:05 GMT+5.5)	Amit Atre (Oct 19, 2022 15:56 GMT+5.5)
	Sunil Sapre Executive Director and Chief Financial Officer	Amit Atre Company Secretary
	DIN: 06475949	Membership No. A20507
Place: Pune Date: October 19, 2022	Place: Pune Date: October 19, 2022	Place: Pune Date: October 19, 2022

CONDENSED INTERIM CONSOLIDATED CASH FLOW STATEMENT FOR THE HALF YEAR ENDED SEPTEMBER 30, 2022

			For the half year ended	For the year ended
		In ₹ Million	September 30, 2022 September 30, 2021 In ₹ Million	March 31, 2022 In ₹ Million
Cash flow from operating activities
Profit before tax		5.774.79	4.206.84	9.242.79
Adjustments for:
nterest income		(222.73)	(254.60)	(600.22)
Finance costs		189.91	43.56	118.35
Depreciation and amortization expense		1,338.19	720.92	1,660.12
Unrealised exchange loss/ (gain) (net)		(10.02)	(18.56)	(25.92)
Change in foreign currency translation reserve		(153.42)	66 62	305.64
Exchange (gain) / loss on derivative contracts		133.98	57.87	79.38
Exchange loss / (gain) on translation of foreign currency cash and cash equivalents		4.56	3.46	1.70
Bad debts				65.27
(Reversal) / Allowance for expected credit loss (net)		31.01	(27.36)	(105.06)
Employee stock compensation expenses		695.81	364.80	950.23
Loss / Impairment of non current investments				148.40
Provision for diminution in value of non-current investments			147.68	$\overline{a}$
Remeasurements of the defined benefit liabilities / asset (before tax effects)		34.00	(132.97)	(183.87)
Excess provision in respect of earlier years written back		(9.35)	(32.55)	(66.00)
Profit on sale/ fair valuation of financial assets designated as FVTPL		(56.18)	(233.58)	(354.30)
Profit on sale of property, plant and equipment (net)		(0.11)	(4.72)	(12.45)
Operating profit before working capital changes		7,750.44	4,907.41	11,224.06
Movements in working capital:				5.69
Decrease / (Increase) in non-current and current loans Increase in other non current assets		1.83	(0.11)	(147.89)
Increase in other current financial assets		(150.40) (1,076.24)	(109.05) (881.19)	(869.22)
(Increase) / Decrease in other current assets		(801.08)	232.49	146.71
Increase in trade receivables		(2,691.07)	(749.25)	(3,508.56)
Increase in trade payables, current liabilities and non current liabilities		2,319.72	1,318.68	2,489.72
		(286.16)	(171.83)	1,476.47
(Decrease) / Increase in provisions Operating profit after working capital changes		5.067.04	4.547.15	10,816.98
Direct taxes paid (net of refunds)		(1, 285, 14)	(1, 150.38)	(2,367,12)
Net cash generated from operating activities (A)		3.781.90	3,396.77	8.449.86

Cash flows from investing activities
Payment towards capital expenditure (including intangible assets, capital advances and capital creditors)		(2,832,38)	(2,325.90)	(3,853.97)
Proceeds from sale of property, plant and equipment		3.19	15.21	46.02
Acquisition of step-down subsidiaries/businesses including cash and cash equivalents: ₹ 642.81 Million (Corresponding period: Nil / Previous year ₹ 61.07 million)		(3,914.07)		(6.154.02)
Purchase of bonds		(62.97)	(562.62)	(711.90)
Proceeds from sale/ maturity of bonds		31 49	239 35	499.95
nvestments in mutual funds		(18,060,60)	(15,686,10)	(33, 456, 80)
Proceeds from sale / maturity of mutual funds		20,366.55 1,580.86	19, 127.50 740.08	35.762.24 1,121.92
Proceeds from maturity of bank deposits having original maturity over three months Investments in deposits with financial institutions		(200.00)		(100.00)
Investment in common / preferred stocks				(123.61)
Loan to ESOP Trust			(1,880.00)	(3, 522.00)
Interest received		288.78	368.05	718.74
(B) Net cash (used in) / generated from investing activities		(2,799.15)	35.57	(9,773,43)

Cash flows from financing activities
Repayment of long term borrowings in Indian rupee Net proceeds from foreign currency long term borrowings		(1.86) 1,018.42	(1.85)	(1.84) 4,280.99
Payment of lease liabilities		(198.70)	(167.57)	(350.83)
Interest paid		(189.99)	(43.67)	(118.38)
Dividends paid		(840.15)	(458.55)	(1,987,05)
Net cash (used in) / generated from financing activities	(C)	(212.28)	(671.64)	1,822.89

		For the half year ended	For the year ended
		September 30, 2022 September 30, 2021	March 31, 2022
	In ₹ Million	In ₹ Million	In ₹ Million
Net increase in cash and cash equivalents $(A + B + C)$	770.47	2,760.70	499 32
Cash and cash equivalents at the beginning of the year	2.977.99	2.419.30	2.419 30
Cash and cash equivalents acquired on acquisition	642.81		61.07
Effect of exchange difference on translation of foreign	(4.56)	(3.46)	(1.70)
currency cash and cash equivalents
Impact of ESOP Trust consolidation	20.66
Cash and cash equivalents at the end of the year	4,407.37	5,176.54	2,977.99
Components of cash and cash equivalents
Cash on hand (refer note 13)	0.29	0.23	0.24
Cheques on hand (refer note 13)		1 34
Balances with banks
On current accounts # (refer note 13)	3,511.39	4,682 35	2,337.96
On saving accounts (refer note 13)	31.74	8.46	1.64
On exchange earner's foreign currency accounts (refer note 13)	456.69	358.60	259 20
On deposit accounts with original maturity less than three months (refer note 13)		125.56
On Escrow accounts** (refer note 13)	407.26		378.95
Cash and cash equivalents	4.407.37	5,176.54	2,977.99

Of the cash and cash equivalent balance as at September 30, 2022, the Group can utilise ₹ 37.42 million (Corresponding period : ₹ 170.21 million, Previous year: ₹ 35.75 million)
only towards certain predefined activitie

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

Summary of significant accounting policies - refer note 4

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

As per our report of even date

Shashi Tadwalkar

Membership No.: 101797

Partner

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

Digitally signed by SHASHI SHASHI TADWALKAR TADWALKAR Date: 2022.10.19

Anand Destrpande

Dr. Anand Deshpande Chairman and Managing Director DIN: 00005721

Place: Pune Date: October 19, 2022 Sandeep Kalra Executive Director and Chief Executive Officer DIN: 02506494

Date: October 19, 2022

Place: Pune

deep Kalra (Oct¹⁶, 2022

Sandeep Kalra

:19 GMT+5.5)

Praveen

Purushottam Kadle

Praveen Kadle

DIN: 00016814

Independent Director

Place: Pune Date: October 19, 2022

.
Digitally signed by
Praveen Purushottam

Praveen Purushottam
Kadle
- Date: 2022.10.19 17:03:16
- +05'30'

Sunil Sapre
Sunil Sapre (Oct 19, 2022 16:05 GMT+5.5) Amit Atre Amit Atre (Oct 19, 2022 15:56 GMT+5.5) Sunil Sapre Amit Atre Executive Director and Chief
Financial Officer Company Secretary DIN: 06475949 Membership No. A20507 Place: Pune Place: Pune Place: Pune Date: October 19, 2022 Date: October 19, 2022

Date: October 19, 2022

CONDENSED INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF YEAR ENDED SEPTEMBER 30, 2022

A. Share capital

(refer note 18)

(In ₹ Million)

Balance as at April 1, 2022	during the period	Changes in equity share capital Balance as at September 30, 2022

764.25		764.25

(In ₹ Million)

Balance as at April 1, 2021	during the period	Changes in equity share capital Balance as at September 30, 2021

764.25		764.25

(In ₹ Million)

Balance as at April 1, 2021	Changes in equity share capital during the year	Balance as at March 31, 2022

764.25		764.25

Particulars				Reserves and surplus Capital redemption				ttems of other comprehensive income		(In ₹ Million) Total
	General reserve	Share options outstanding reserve	Gain on bargain	reserve	Retained earnings	Treasury shares	PSL ESOP Trust reserve	Effective portion of cash flow hedges	financial statements of Exchange differences foreign operations on translating the
Balance as at April 1, 2022	17,376.65	1,144.84	5780	35.75			$\mathbf{r}=\mathbf{r}$	41.80	707.21	32,917.95 4,316.26
Items recognised in / from other comprehensive income for the period Profit for the period			$\overline{1}$ $\blacksquare$	$\epsilon$	13,553.90 4,316.26 34.00		$\bar{a}$	(346.35)	464.50
Dividend			$\overline{\phantom{a}}$		(840.68)
Dividend Paid to ESOP trust	$\bullet$	ı	$\overline{1}$ ï	$\epsilon$			23.44 í.			$\begin{array}{r} 152 \ 15 \ 040 \ 68 \ 23 \ 44 \ 685 \ 81 \end{array}$
Employee stock compensation expenses Other changes during the year Shares held by ESOP trust	0.19	695 81 2 2 8	4.24			(2,790.61)	J.			(2,790.61) 6.71
Balance at September 30, 2022	17,37684	1,842.93	62.04	3575	17,063.48	(2,790.61)	23.44	(304.55)	1,171.71	34,481.03
								(In ₹ Million)
Particulars	General reserve	Share options outstanding reserve	Reserves and surp lus Gain on bargain Gain on bargain	Capital redemption reserve	Retained earnings		terns of other comprehensive income! Effective portion of cash Exchange differences on Effective portion of cash Exchange differences on statements of foreign operations	Tota
Balance as at April 1, 202	14,356.53	470.70	57.31	35.75		139.45	568.25
Items recognised in / from other comprehensive income for the period Net profit for the period			$\mathbf{I}$	$\blacksquare$		(72, 99)	114.73
Dividend			ï		11,564.42 3,130.01 (100.09) (458.55)			$\begin{array}{r} 27,192.41 \ 3,130.01 \ (68.35) \ (458.55) \ (458.55) \ 364.80 \end{array}$
Employee stock compensation expenses Other changes during the period		364.86 0.58	(0.70)					(014)
Balance at September 30, 2021	14,356.53	836.06	56.61	35.75	14,135.79	66.46	682.98	30,170.18
Particulars								(In ₹ Million) Tota
	General reserve		Reserves and surplu Gain on bargain	Capital redemption	Retained earnings
		outstanding reserve Share options	purchase	reserve			lterns of other comprehensive income Effective portion of cash [Exchange differences on flow hedges [translating the financial statements of foreign operations
Balance as at April 1, 2027	14,356.53	470.70	57.31	35.75	11,564.42 6,903.86	139.45	568.25	27,19241 6,90386
ttems recognised in / from other comprehensive income for the year Profit for the year			$\blacksquare$ $\blacksquare$	CONTRACTOR	(183.87)	(97, 65)	138.96	(142.56)
Dividend					$(1, 987, 05)$ $(2, 743, 46)$			(1,987,05)
Transfer to general reserve	2,743.46		$\overline{\phantom{a}}$
Employee stock compensation expenses	$\bullet$	95023	$\overline{\phantom{a}}$				$\mathbf{r}=\mathbf{r}$	95023
Adjustments towards employees stock options	(0.18) 27684	(276.84) 0.75	0.49					$\frac{8}{2}$
Other changes during the year Balance at March 31, 2022	376.65	144.84	$\frac{5}{5}$	35.75	13,553.90	41.80	707.21	32,917.95
Summary of significant accounting policies - refer note 4
The accompanying notes are an integral part of the condensed interim	consolidated financial statements.
As per our report of even date					andees	alsa
For Walker Chandlok & Co LLP
Chartered Accountants				For and an delay of sthe Board (CD) Books of 19 GMT+5.5) For sistent Systems Limited (		Praveen
SHASHI TADWALKAR Dagaaliy samed by San Sa Tachwaxar Firm Registration No.: 001076N/N500013				Huand Deshpande		Digitally signed by Praveen Purushottam Kødle Date: 2022.10.19 17:03:48 +05:30 Purushottam Kadle
Shashi Tadwalkar				Dr. Anand Deshpande		Praveen Kadle
Partner				Chairman and Managing Director	Sandeep Kalra Executive Director and Chief Executive Officer	Independent Director
Membership No.: 101797				DIN: 00005721	DIN: 02506494	DIN: 00016814
				Place: Pune	Place: Pune	Place: Pune Date : October 19, 2022
				Date : October 19, 2022	Date: October 19, 2022

$\frac{S\mu nil\;Sapr\mathcal{C}}{s}$ unil Sapre (Oct 19, 2022 16:05 GMT+5.5)

Place: Pune
Date : October 19, 2022

Sund Sapre

Sund Sapre

Envertise One-by and Company Secretary

Diversion Officer Company Secretary

Diversion Contains (S. 2022 Date Lune

Date : Concher 19, 2022 Date : October 19, 2022

Date : Concher 19, 2022 Date : O

Condensed Interim Consolidated Statement of changes in equity for the half year ended September 30, 2022

Nature and purpose of reserves

a) General reserve

General reserve represents amounts transferred from profit/loss for the year and the amounts from Share options outstanding reserve to the extent they relate to exercise / expiry of employee share options. It is a free reserve in terms of section 2 (43) of the Companies Act, 2013.

b) Share options outstanding reserve

Share options outstanding reserve represents the cumulative expense recognized for equity-settled transactions at each reporting date until the employee share options are exercised / expired upon which such amount is transferred to General reserve.

c) Gain on bargain purchase

The excess of the Group's portion of equity of the acquired company over its cost is treated as gain on bargain purchase in the financial statements.

d) Capital redemption reserve

Capital redemption reserve represents the nominal value of the shares bought back; and is created and utilised in accordance with Section 69 of the Companies Act, 2013.

e) Special Economic Zone re-investment reserve

The Special Economic Zone re-investment reserve was created out of the profit in terms of the provisions of Section 10AA(1)(ii) of the Income tax Act, 1961. The reserve has been utilised by the Group for acquiring new plant and machinery for the purpose of its business in accordance with Section 10AA(2) of the Income tax Act, 1961.

f) Cash flow hedge reserve

When a derivative is designated as cashflow hedging instrument, the effective portion of changes in the fair value of derivative is recognised in Other comprehensive income (OCI) and accumulated in cashflow hedge reserve. Cumulative gains or losses previously recognised in cashflow hedge reserve are recognised in the statement of profit and loss in the period in which such transaction occurs / hedging instruments are settled/ cancelled.

g) Foreign currency translation reserve

The foreign exchange differences arising from the translation of financial statements of foreign operations with functional currency other than Indian rupees is recognised in other comprehensive income and is presented under equity in the foreign currency translation reserve. The amount is transferred to retained earnings upon disposal of investment in foreign operation.

h) PSL ESOP Trust reserve and Treasury shares

PSL ESOP Trust reserve and Treasury shares The Group has formed PSPL ESOP Management Trust ("PSL ESOP Trust") for implementation of the schemes that are notified or may be notified from time to time under the plans providing share based payment to its employees.

PSL ESOP Trust is a controlled entity of the Group and shares held by PSL ESOP Trust are treated as treasury shares. Profit / (Loss) on sale of treasury shares and dividend earned on the same by PSL ESOP Trust is recognised in PSL ESOP Trust reserve.

es forming part of consolidated interim consolidated financial statements

Nature of operations $\mathbf{1}$

Persistent Systems Limited (the "Parent 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 product life cycle services.

The Board of Directors approved the consolidated financial statements for the quarter and half year ended September 30, 2022 and authorised for issue on October 19, 2022.

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

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

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

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

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

Aepona Group Limited, an Ireland based wholly owned subsidiary of Persistent Systems, Inc. operates as the holding Company of Aepona 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 and Data and Al

Persistent Systems Lanka (Private) Limited (a Sri Lanka 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 th

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 ar

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, Youperience GmbH and Data Glove IT Solutions Limitada.

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.

Data Glove IT Solutions Limitada (a Costa Rica based wholly owned subsidiary of Persistent Systems Germany GmbH) is a leading Microsoft technology solutions provider in verticals induding Azure, business applications, workplace modernization, and Data and Al

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

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

CAPIOT Software Private Limited (a India based wholly owned subsidiary of Persistent Systems Limited) is engaged in enterprise integration and modernization with expertise in MuleSoft, Red Hat and TIBCO.

CAPIOT Software Inc (a US based wholly owned subsidiary of Persistent Systems Inc) is engaged in enterprise and data integration services across platforms.

CAPIOT Software Pty Limited (a Australia based wholly owned subsidiary of CAPIOT Software Inc) is engaged in enterprise and data integration services across platforms. Further, it has acquired a new
Microsoft business unit

CAPIOT Software Pte Limited (a Singapore based wholly owned subsidiary of CAPIOT Software Inc) is engaged in enterprise and data integration services across platforms.

Persistent Systems SRL is a subsidiary of Persistent Systems Inc. and is incorporated on March 23, 2021.

Software Corporation International (a US based wholly owned subsidiary of Persistent Systems Inc) is specialized in payment solutions, integration, and support services for BFSI clients.

SCI Fusion360 LLC (a US based wholly owned subsidiary of Persistent Systems Inc) provides application development, maintenance, and support for leading payment platforms.

Klisma e-Services Private Limited was engaged in the business of internet, telecommunications, mobile technology and other media enabling electronic commerce. The Company was dissolved w.e.f. August 10.2021.

MediaAgility India Private Limited (an India based wholly owned subsidiary of Persistent Systems Limited) (acquired with effect from April 29, 2022) is engaged in cloud-native application development and
modernization, ana

MediaAgility Inc (a US based wholly owned subsidiary of Persistent Systems Inc) (acquired with effect from May 4, 2022) is cloud transformation services provider with deep expertise building scalable, cloudbased solutions as a Google Cloud Premier Partner

MediaAgility UK Limited (a UK based wholly owned subsidiary of Persistent Systems Inc) (acquired with effect from May 4, 2022) is doud transformation services provider with deep expertise building scalable,
cloud-based sol

MediaAgility S de RL de CV (a Mexico based wholly owned subsidiary of Persistent Systems Inc) (acquired with effect from May 4, 2022) is cloud transformation services provider with deep expertise building
scalable, cloud-b

Media Agility Pte Ltd (a Singapore based wholly owned subsidiary of Persistent Systems Inc) (acquired with effect from May 4, 2022) is cloud transformation services provider with deep expertise building scalable, cloud based solutions as a Google Cloud Premier Partner.

Persistent Systems S.R.L. Romania is incorporated on Jun 17, 2022 and a wholly owned subsidiary of Persistent Systems Germany GmbH.

tes forming part of consolidated interim consolidated financial statements

Basis of preparation $\overline{2}$

$2.1$ Historical cost convention

The condensed interim consolidated 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
The condensed in accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

2.2 New and amended standards adopted by the Group

These condensed interim consolidated financial statements are prepared in accordance with Indian Accounting Standard (Ind AS 34), the provisions of the Companies Act, 2013 ("the Act") (to the extent notified)
and guideline applicable financial reporting framework.

2.3 Reclassifications consequent to amendments to Schedule III

The Ministry of Corporate Affairs amended the Schedule III to the Companies Act, 2013 on 24 March 2021 to increase the transparency and provide additional disclosures to users of financial statements. These
amendments are

Consequent to above, the Group has changed the classification/presentation of (i) current maturities of long-term borrowings (ii) security deposits, of the corresponding period / previous year.

The current maturities of long-term borrowings (including interest accrued) has now been included in the "Current borrowings" line item. Previously, current maturities of long-term borrowings and interest

Further, security deposits (which meet the definition of a financial asset as per Ind AS 32) have been included in 'other financial assets' line item. Previously, these deposits were included in 'loans' line item.

The Group has reclassified comparative amounts to conform with current year presentation as per the requirements of Ind AS 1. The impact of such classifications is summarised below:

Balance Sheet (extract)	September 30, 2021 (Previous v Reported)	Increase / (Decrease)	September 30, 2021 (Restated)
Non-current assets
Loans	2.064 14	(184.14)	1,880.00
Other non-current financial assets	41.35	184.14	225.49
Current assets
Loans	21.99	(21.99)
Other current financial assets	3,193.00	21.99	3.214.99
Current liabilities
Other financial liabilities	169.67	(1.85)	167.82
Borrowings		1.85	1.85

3 Principles of consolidation

The condensed interim consolidated financial statements of the Parent Company and its subsidiaries ("the Group") for the half year ended September 30, 2022 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

The Parent Company consolidates entities which it owns or controls. The consolidated financial statements comprise the financial statements of the company and its subsidiaries as disdosed below. Control
exists when the par commences until the date control ceases.

The condensed interim consolidated financial statements of the Parent 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

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 condensed interim consolidated financial statements. The excess of the Company's portion of equity of the acquired company over its cost is treated as gain on bargain purchase in th

The condensed interim 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 Parent Company's separate financial statements

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

The contract of consolidated interim consolidated financial statements
The subsidiary and associate companies considered in consolidated financial statements are as follows:
The subsidiary and associate companies considere

Name of the subsidiary/ associate		Ownership Percentage as at		Country of
				incorporation
		September 30, 2022 September 30, 2021 March 31, 2022
Persistent Systems, Inc.	100%	100%	100%	USA
Persistent Systems Pte Ltd.	100%	100%	100%	Singapore
Persistent Systems France SAS	100%	100%	100%	France
Persistent Telecom Solutions Inc.	100%	100%	100%	USA
Persistent Systems Malaysia Sdn. Bhd.	100%	100%	100%	Malaysia
Aepona Group Limited	100%	100%	100%	reland
Aepona Limited	100%	100%	100%	UK
Persistent Systems Lanka (Private) Limited	100%	100%	100%	Sri Lanka
Persistent Systems Mexico, S A de C V.	100%	100%	100%	Mexico
Persistent Systems Israel Ltd.	100%	100%	100%	Israel
Persistent Systems Germany GmbH	100%	100%	100%	Germany
Persistent Systems Switzerland AG (formerly known as PARX Werk AG)	100%	100%	100%	Switzerland
PARX Consulting GmbH	100%	100%	100%	Germany
Youperience GmbH	100%	100%	100%	Germany
Youperience Limited	100%	100%	100%	United Kingdom
CAPIOT Software Private Limited (Acquired w.e.f. October 29, 2020)	100%	100%	100%	India
CAPIOT Software Inc. (Acquired w.e.f. November 7, 2020)	100%	100%	100%	USA
CAPIOT Software Pty Limited (Acquired w.e.f. November 7, 2020)	100%	100%	100%	Australia
CAPIOT Software Pte Limited (Acquired w.e.f. November 7, 2020)	100%	100%	100%	Singapore
Persistent Systems S.R.L. (Incorporated on March 23, 2021)	100%	100%	100%	taly
Software Corporation International (Acquired w e f October 5, 2021)	100%		100%	USA
SCI Fusion360 LLC (Acquired w.e.f October 5, 2021)	100%		100%	USA
Data Glove IT Solutions Limitada (Acquired w.e.f. March 1, 2022)	100%		100%	Costa Rica
Klisma e-Services India Pvt. Ltd. (Dissolved w.e.f August 10, 2021)		50%		India
MediaAgility India Private Limited (Acquired w.e.f. April 29, 2022)	100%			India
MediaAgility Inc. (Acquired w.e.f. May 4, 2022)	100%			USA
MediaAgility S de RL de CV (Acquired w e f May 4, 2022)	100%			Mexico
MediaAgility UK Limited (Acquired w.e.f. May 4, 2022)	100%			UK
Media Agility Pte Ltd (Acquired w e f. May 4, 2022)	100%			Singapore
Persistent Systems S.R.L. Romania (Incorporated on Jun 17, 2022)	100%			Romania
PSPL ESOP Management Trust (Refer Note 1)	100%			India

Note 1: Consequent to amendment in the trust deed w.e.f. April 1, 2022, the Group has assessed PSPL ESOP Management Trust to be a controlled entity and accordingly the same has been consolidated w.e.f. April 1, 2022 on a p

otes forming part of consolidated interim consolidated financial statements $\mathbf{A}$

Critical accounting estimates

4.1 Use of estimates

The preparation of the financial statements in conformity with Ind AS requires the Management to make estimates, judgments and assumptions. These estimates, judgments and assumptions affect the
application of accounting po and comparison in the preference of the contentions extending performance and content of the period of the method to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as th

4.2 Critical accounting estimates

a) Revenue recognition

The Group's contracts with customers include promises to transfer multiple products and services to a customer. Revenues from customer contracts are considered for recognition and measurement when the
contract has been app assesses the services promised in a contract and identifies distinct performance obligations in the contract. Identification of distinct performance obligations to determine the deliverables and the ability of the customer to benefit independently from such deliverables, and allocation of transaction price to these distinct performance obligations involves significant judgment.

Revenue from fixed price maintenance type contracts is recognized rateably on a straight-line basis when services are performed through an indefinite number of repetitive acts over a specified period. Revenue from fixed-price maintenance type contract is recognised ratably using a percentage-of-completion method when the pattern of benefits from the services rendered to the customer and the Group's costs to fulfil the contract is not even through the period of the contract because the services are generally discrete in nature and not repetitive. The use of a method to recognise such revenues requires judgment and is

The Group uses the percentage-of-completion method in accounting for its other fixed-price contracts. Use of the percentage-of-completion method requires the Group to estimate the efforts or costs expended
to date as a pro contracts are recorded in the period in which such losses become probable based on the expected contract estimates at the reporting date.

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

b) 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.

c) Business combination

d) Property, plant and equipmen

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 and the sta

e) Leases

Summary of significant accounting policies $4.3$

a) Current versus non-current classification

All assets and liabilities have been classified as current or non-current as per the Group's operating cycle and other criteria set out in the Schedule III of the Companies Act, 2013 (the "Act"). Operating cycle is
The tim

b) Property, Plant and Equipment

Property, Plant and Equipment are stated at cost, less accumulated depreciation and accumulated impairment losses, if any. Capital work-in-progress includes cost of Property, Plant and Equipment that are not ready to be put to use and is stated at cost. The cost comprises the purchase price and directly attributable costs of bringing the asset to its working condition for its intended use, cost of replacing part of the property, plant and equipment, cost of asset retirement obligations and borrowing costs for long term construction projects if the recognition criteria are met. Any trade discounts and rebates are
arriving at the purchase

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

es forming part of consolidated interim consolidated financial statements

c) Intangible assets

Intangible assets induding software licenses of enduring nature and contractual rights acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business
combination is th

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) 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:

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

*For these classes of assets, based on a technical evaluation, the management believes that the useful lives as given above best represent the period over which the management expects to use these assets.

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.

Where cost of a part of the asset ("asset component") is significant to total cost of the asset and useful life of that part is different from the useful life of the remaining asset, useful life of that significant part is

Intangible assets are amortized on a straight-line basis over their estimated useful lives ranging from 3 to 7 years from the day the asset is made available for use

Depreciation methods, useful lives and residual values are reviewed periodically.

e) Borrowing costs

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

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

f) Leases

The Group assesses at the inception of contract whether a contract is or contains a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

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

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

(iii) the Group has the right to direct the use of the asset

Where the Group is a lessee

The Group accounts for each lease component within the contract as a lease separately from non-lease components of the contract and allocates the consideration in the contract to each lease component on
the basis of the re

The Group recognises right-of-use asset representing its right to use the underlying asset for the lease term at the lease commencement date. The cost of the right-of-use asset measured at inception shall
comprise of the a incurred and an estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset or restoring the underlying asset or site on which it is located.

Right-of-use assets are tested for impairment whenever there is any indication that their carrying amounts may not be recoverable. Impairment loss, if any, is recognised in the statement of profit and loss. The Group measures the lease liability at the present value of the lease payments that are not paid at the commencement date of the lease. The lease payments are discounted using the interest rate implicit in the lease, if

es forming part of consolidated interim consolidated financial statements

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

The lease liability is subsequently remeasured by increasing the carrying amount to reflect interest on the lease liability, reducing the carrying amount to reflect the lease payments made and remeasuring the
carrying amou

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

The Group has elected not to apply the requirements of Ind AS 116 to short-term leases of all assets that have a lease term of 12 months or less and leases for which the underlying asset is of low value. The
lease expenses

Group as a lessor

At the inception of the lease, the Group classifies each of its leases as either an operating lease or a finance lease. Whenever the terms of the lease transfer substantially all the risks and rewards of ownership
to the l term on a straight line basis.

g) Impairment of Non-financial assets

The Group asesses at each reporting date, if there is any indication of impairment based on internal/external factors. If any indications exist, the Group estimates the asset's recoverable amount unless the asset
does not

In such cases, the recoverable amount is determined for the Cash Generating Unit (CGU) to which the asset belongs. If the recoverable amount of an asset (or CGU) is estimated to be less than its carrying amount, the carrying amount of the asset (or CGU) is reduced to its recoverable amount. The recoverable amount, the creater of the assets fair value and its value in use, in assessing value in use, in assessing value in us

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 go generate largely independent cash inflows 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 estimat

For the purpose of impairment testing, goodwill acquired in a business combination is allocated to the CGU or groups of CGUs, which benefit from the synergies of the acquisition. The synergy benefits derived from Goodwill are enjoyed interchangeably among segments and the Group is of the view that it is not practical to reasonably allocate the same and an ad-hoc
allocation will not be meaningful.

Based on the testing, no impairment was identified as at March 31, 2022 and 2021 as the recoverable value of the CGUs exceeded the carrying value. An analysis of the calculation's sensitivity to a change in
the key paramet

h) Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

Initial recognition and measure

The Group recognizes financial assets and financial liabilities when it becomes a party to the contractual provisions of the instrument. All financial assets and liabilities are recognized at fair value on initial recognition, except for trade receivables which are initially measured at transaction price. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities, which

The classification of financial assets at initial recognition depends on the financial asset's contractual cash flow characteristics and the Group's business model for managing them. The Group's business model refers to how it manages it's financial assets to generate cash flows. The business model determines whether the cash flows will result from collecting contractual cash flows, selling the financial assets, or both.

Non-derivative financial instruments

Subsequent measurement

Financial assets

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 ce income in the statement of profit and loss.

Financial assets at fair value through other comprehensive income (FVTOCI)

Financial assets at fair value through profit or loss (FVTPL)

s forming part of consolidated interim consolidated financial statements Financial liabilities

Financial liabilities at amortised cost

Financial liabilities at fair value through profit or loss (FVTPL)

Financial liabilities include financial liabilities held for trading and financial liabilities designated upon initial recognition at fair value through profit or loss if the recognition criteria as per Ind AS 109 – "Finan

Investments in subsidiaries, associates and joint ventures

Investment in subsidiaries, associates and joint ventures are carried at cost.

Derivative financial instruments

The Group uses derivatives for economic hedging purposes. At the inception of hedging relationship, the Group documents the hedging relationship between the hedging instrument and hedged item including whether the changes in cash flows of the hedging instruments are expected to offset the changes in cash flows of the hedged items. The Group documents its objective and strategy for undertaking its hedging transactions.

Derivatives are initially recognised at fair value on the date a derivative contract is entered and are subsequently re-measured at fair value at each reporting date.

For cash flow hedges that qualify for hedge accounting, the effective portion of fair value of derivatives are recognised in cash flow hedging reserve within equity.

Gains or losses relating to the ineffective portion is immediately recognised in profit or loss.

Amounts accumulated in equity are reclassified to profit or loss in the period when the hedged item affects profit and loss or hedged future cash flows are no longer expected to occur.

Derivatives which do not qualify for hedge accounting are accounted as fair value through profit or loss.

Derecognition

The Group derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers the financial asset and the transfer qualifies for derecognition under Ind AS The Supervisory and absent when the University of the Comparable of the Comparable of the Comparable of the Comparable in the Comparable of the Comparable in the Comparable of expires. On derecognition of a financial asset of profit and loss.

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

Financial guarantee contracts

Financial guarantee contracts issued by the Group are those contracts that require a payment to be made to reimburse the holder for a loss it incurrs because the specified debtor fails to make a payment when
due in accorda of the quarantee. Subsequently, the liability is measured at the higher of the amount of loss allowance determined as per impairment requirements of Ind AS 109 and the amount recognised less cumulative amortisation.

Fair value of financial instruments

In determining the fair value of its financial instruments, the Group uses a variety of methods and assumptions that are based on market conditions and risks existing at each reporting date. The methods used
to determine f

For equity instruments of unlisted companies, in limited circumstances, insufficient more recent information is available to measure fair value, or if there are a wide range of possible fair value measurements and cost represents the best estimate of fair value within that range. The Group recognises such equity instruments at cost, which is considered as appropriate estimate of fair value.

Impairment of 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 are due and the cash flows that are due and the cash flows t

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 bee increased significantly, lifetime ECL is used.

i) Revenue recognition

Revenues from customer contracts are considered for recognition and measurement when the contract has been approved by the parties to the contract. the parties to the contract are committed to perform Hevenues from customer contracts are consideration and measurement when the contract has been approved by the partners of the contracts are consideration the contracts are consideration the contract is legally enforceable. penalties. The Company includes variable consideration as part of transaction price when there is a basis to reasonably estimate the amount of the variable consideration and when it is probable that a significant reversal

s forming part of consolidated interim consolidated financial statements

Income from software services and products

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

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

Revenue 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.

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

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

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

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

Interest

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

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.

Contract balances Contract assets

A contract asset is the right to consideration in exchange for services or products tranferred to the customer. If the Group provides services or transfers products to the customer before the customer pays consideration or before the payment is due, a contract asset is recognised for the earned consideration that is conditional

Contract liabilities

A contract liability is the obligation to provide services or transfer products to a customer for which the Group has received consideration (or an amount of consideration is due) from the consideration. If the
Group recei

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.

k) Foreign currency translation

Foreign currency transactions and balances

Initial recognition

Foreign currency transactions are recorded in the functional currency of the entities, 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 converted 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 Group presents the financial statements in INR which is the functional currency of the Group.

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

Retirement and other employee benefits

Provident fund

. . . . . . . . . . . . . . . . . . . year when the contributions are due. The Group has no obligation, other than the contribution payable to the provident fund.

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 recogn

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 resp

s forming part of consolidated interim consolidated financial staten

ccumulated 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 va Expense on non-accumulating compensated absences is recognized in the period in which the absences occur.

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

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.

m) 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. rent 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.

In the situations where the Group is entitled to a tax holiday under the Income-lax Act, 1961 enacted in India or tax laws prevailing in the respective tax jurisdictions where it operates, no deferred tax (asset or
Iiabili

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 rela

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.

n) 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 and unbilled revenue as these items are used interchangeably among 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 for preparing and presenting the financial statements of the Group as a whole.

o) Earnings per share (EPS)

Basic earnings per share are calculated by dividing the net profit for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the 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.

For the purpose of calculating diluted earnings per share, the net profit for the year attributable to the equity shareholders and the weighted average number of equity shares outstanding during the 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.

p) 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 estimates.

s forming part of consolidated interim consolidated financial statements

q) 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

r) 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.

s) Share based payments

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).

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 w

At the end of each reporting period, the entity revises its estimates of the number of options that are expected to vest best on the non-market vesting and service conditions. It recognises the impact of the
revisions to t

The expense or credit recognized in the statement of profit and loss for the period represents the movement in cumulative expense recognized as at the beginning and end of that period and is recognized in employee benefits expense with a corresponding increase in stock options outstanding reserve in equity. 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.

t) Equity

Ordinary shares are classified as equity share capital. Incremental costs directly attributable to the issuance of new ordinary shares, share options and buyback are recognized as a deduction from equity, net of any tax effects

u) Dividend

Final dividend on shares are recorded as a liability on the date of approval by the shareholders and interim dividends are recorded as a liability on the date of declaration by the Board of Directors.

v) Business combination

The acquisition method of accounting is used to account for all business combinations, regardless of whether equity instruments or other assets are acquired. The acquisition cost is measured as the aggregate of the consideration transferred and the amount of any non-controlling interest in the acquiree at fair value.

Acquisition-related costs are expensed as incurred

The excess of the:

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

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

w) 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
id initial recognition. Goodwill is measured at cost less accumulated impairment losses.

5.1 Property, plant and equipment
									(In ₹ Million)
	Land	Buildings	Computers	Office	Plant and	Leasehold	Furniture and Vehicles		Total
	Freehold			equipments	equipment	improvements	fixtures
Gross block (At cost)
As at April 1, 2022	221 62	2,455 16	4,00393	10038	.399.89	4769	734 18	727	8,970.12
Additions			426 59	483	248 40	1111	14780		83873
Additions on business combinations (refer note 34)			3050	2.69		4.40	602		4361
Disposals			3952	0.35	1.76	3.73	374		49 10
to reporting currency Effect of foreign currency translation from functional currency	(0.83)	(372)	23.73	3.08	(0.88)	$\frac{8}{18}$	10.08		33.27
As at September 30, 2022	22079	2.451.44	4.44523	110.63	1,645 65	6128	894.34	727	9,836 63

Accumulated Depreciation
As at April 1, 2022		1,28198	2,76792	9052	1,18881	4501	67226	595	6,05245
Additions on business combinations (refer note 34)			2101	232		4.18	447		3198
Charge for the period		49 60	34962	2.27	3967	1.02	2338	0.47	46603
Disposals			37 22	0.31	1.76	3.55	307		45.91
to reporting currency Effect of foreign currency translation from functional currency		(1.63)	1952	2.91	(0.06)	130	9.90		3194
As at September 30, 2022		1,32995	3,12085	97 71	1,226 66	4796	706.94	642	6,53649

As at September 30, 2022 Net block	22079	1,121 49	1,32438	12.92	418.99	13.32	18740	0.85	3,300 14

(This space is intentionally left blank)

Persistent Systems Limited
Notes forming part of Condensed Interim Consolidated Financial Statements

5.2 Right-of-use assets

	Leasehold Land	Office premises	(In ₹ Million) Total
Gross block (At cost)
As at April 1, 2022	37.50	1,841.75	1,879.25
Additions during the period	94.47	933.49	1,027.96
Disposals
Effect of foreign currency translation of foreign operations from functional currency to reporting currency		(78.48)	(78.48)
As at September 30, 2022	131.97	2,696.76	2,828.73

Accumulated Depreciation As at April 1, 2022	1.76	519.28	521.04
Charge for the period	0.71	210.93	211.64
Disposals	$\overline{a}$
Effect of foreign currency translation of foreign operations from functional currency to reporting currency		(41.95)	(41.95)
As at September 30, 2022	2.47	688.26	690.73
Net block
As at September 30, 2022	129.50	2,008.50	2,138.00

			(In ₹ Million)
	Leasehold Land	Office premises	Total
Gross block (At cost)
As at April 1, 2021 Additions during the period	37.50	1,208.13 332.50	1,245.63 332.50
Disposals	$\ddot{\phantom{a}}$	148.96	148.96
Effect of foreign currency translation of foreign operations from functional currency to		7.58	7.58
As at September 30, 2021	37.50	1,399.25	1,436.75
Accumulated Depreciation
As at April 1, 2021 Charge for the period	1.18 0.29	391.87 135.12	393.05 135.41
Disposals	$\blacksquare$	148.96	148.96
Effect of foreign currency translation of foreign operations from functional currency to		2.42	2.42
As at September 30, 2021	1.47	380.45	381.92
Net block
As at September 30, 2021	36.03	1,018.80	1,054.83
			(In ₹ Million)
	Leasehold Land	Office premises	Total
Gross block (At cost)
As at April 1, 2021	37.50	1,208.13 831 31	1,245.63 831.31
Additions during the year Disposals	ä,	201.25	201 25
Effect of foreign currency translation of foreign operations from functional currency to	ä,	3.56	3.56
reporting currency As at March 31, 2022	37.50	1,841.75	1,879.25

Accumulated Depreciation As at April 1, 2021	1.18	391.87	393.05
Charge for the year	0.58	287.93	288.51
Disposals		158.44	158.44
Effect of foreign currency translation of foreign operations from functional currency to reporting currency		(2.08)	(2.08)
As at March 31, 2022	1.76	519.28	521.04
Net block
As at March 31, 2022	35.74	1,322.47	1,358.21
5.3 Goodwill
			(In ₹ Million)
	As at	As at September 30, 2022 September 30, 2021	As at March 31, 2022
Cost
Balance at beginning of period/year	2,790 22	85 94	85.94
		21.53	2,636.81
Additions on business combinations
Addition on purchase price allocation of business combination (refer note 34)	259.50
Effect of foreign currency translation of foreign operations from functional currency to reporting currency	198,35	1,32	67 47

				(In ₹ Million)
	Software	Acquired contractual rights	Provisional intangible assets	Total
Gross block
As at April 1, 2022	3,031 45	6,813.53	6,696.30	16,541.28
Additions	80.83			80.83
Additions on business combinations (refer note 34)	10.58		4,688.95	4,699.53
Disposals	390.70			390.70
Reclassification on purchase price allocation of business combination (refer note 34)		216.06	(475.56)	(259.50)
Adjustment due to change in purchase consideration			(12.15)	(12.15)
Effect of foreign currency translation from functional currency to reporting currency	123.08	394.57	775.02	1,292.67
As at September 30, 2022	2,855,24	7,424.16	11,672.56	21,951.96
Accumulated Amortization
As at April 1, 2022	2.864 32	5,352.04	55.29	8,271 65
Charge for the period	44.62	446.10	169.80	660.52
Additions on business combinations (refer note 34)	9.45			9.45
Disposals	390.70			390.70
Reclassification on purchase price allocation of business combination		18.12	(18.12)
Effect of foreign currency translation from functional currency to reporting currency	123.16	313.31	1.10	437.57
As at September 30, 2022	2,650,85	6,129.57	208.07	8.988.49

Net block
As at September 30, 2022	204 39	1.294 59	11,464.49	12,963.47
				(In ₹ Million)
		Software	Acquired	Total
			contractual rights
Gross block
As at April 1, 2021		2.91277	5,744.93	8,657.70
Additions		37.64	180.25	217.89
Effect of foreign currency translation from functional currency to reporting currency		17.51	79.94	97.45
As at September 30, 2021		2.967.92	6.005.12	8,973.04
Accumulated Amortization
As at April 1, 2021		2.736.80	4.691.40	7.428.20
Charge for the period		33.85	250.15	284.00
Effect of foreign currency translation from functional currency to reporting currency		17.53	50.52	68.05
As at September 30, 2021		2,788,18	4,992.07	7,780,25
Net block
As at September 30, 2021		179,74	1,013.05	1,192,79

				(In ₹ Million)
	Software	Acquired contractual rights	Provisional intangible assets	Total
Gross block
As at April 1, 2021	2.91277	5,744.93		8,657.70
Additions	62.65	182.63		245.28
Additions through business combination	ä,	980.16	6.651.74	7.631.90
Disposals	2.44	0.04		2.48
Effect of foreign currency translation from functional	58.47	(94.15)	44.56	8.88
currency to reporting currency
As at March 31, 2022	3,031.45	6,813.53	6,696.30	16,541.28
Accumulated Amortization
As at April 1, 2021	2,736.80	4.691.40		7,428 20
Charge for the year	70.76	526.18	54.56	651.50
Disposals	1.78	0.01		1.79
Effect of foreign currency translation from functional	58.54	134 47	0.73	193 74
currency to reporting currency
As at March 31, 2022	2,864.32	5,352.04	55.29	8,271.65
Net block
As at March 31, 2022	167 13	1,461.49	6,641.01	8,269.63

5.5 Depreciation and amortization

					(In ₹ Million)
	For the Quarter Ended		For the half year ended		For the year ended
			September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021		March 31, 2022
On Property, Plant and Equipment	243.95	168.12	466.03	301.51	720 11
On Right of Use assets	116.91	67.91	211.64	135.41	288.51
On Other Intangible assets	332.21	134.80	660.52	284.00	651.50
	693.07	370.83	1.338.19	720.92	1,660.12

Persistent Systems Limited
Notes forming part of Condensed Interim Consolidated Financial Statements

Non-current financial assets : Investments

	As at	As at	As at
	In ₹ Million	September 30, 2022 September 30, 2021 In ₹ Million	March 31, 2022 In ₹ Million
Investments carried under equity accounting method
Unquoted Investments
Investments in equity instruments In associates
Klisma e-Services Private Limited [Holding Nil (Corresponding period: / Previous year: Nil)] #
Nil (Corresponding period/ Previous year: Nil) shares of ₹10 each, fully paid up
Less: Writeoff / Impairment
Total investments carried equity accounting method (A)
Investments carried at amortised cost
Quoted Investments
In bonds	2.830 72	2.898.99	2,801.81
[Market value ₹ 2,827.66 million (Corresponding period: ₹ 2,909.38 million /Previous year ₹ 2,863 32 million)]
Add: Interest accrued on bonds	114 35 2,945.07	123.49 3,022.48	77.48 2,879.29
Total investments carried at amortised cost (B)
Designated as fair value through profit and loss
Unquoted Investments
- Investments in mutual funds Fair value of long term mutual funds (refer Note 6a)	1,320.11	796.05	836.42
	1,320.11	796.05	836.42

Others* Investments in Common Stocks / Preferred Stocks
Ciqual Limited [Holding 2.38% (Corresponding period/ Previous year 2.38%)]
0.04 million (Corresponding period/ Previous year: 0.04 million) shares of GBP 0.01 each, fully paid up	15.34	14.77	15.16
Less : Change in fair value of investment	(15.34)	(14.77)	(15.16)
	٠	٠	$\sim$
Altizon Systems Private Limited	6.00	6.00	6.00
3,766 equity shares (Corresponding period/ Previous year : 3,766 equity shares) of ₹
10 each, fully paid up
	6.00	6.00	6.00
Hygenx Inc.	16.27	14.85	15 16
0.25 million (Corresponding period/ Previous year: 0.25 million) Preferred stock of \$ 0.001 each, fully paid up
Less : Change in fair value of investment	(16.27)	(14.85)	(15.16)

Trunomi Inc.	20 34	18.56	18.95
0.28 million (Corresponding period/ Previous year: 0.28 million) Preferred stock of \$
0.0002 each, fully paid up
	20 34	18.56	18.95

Ampool Inc. Nil (Corresponding period: 0.55 million / Previous year : Nil) Preferred stock of \$		18.56
0 4583 each, fully paid up
Less : Change in fair value of investment		(15.73)
	$\overline{a}$	2.83
Cazena Inc. ^
Nil (Corresponding period: 0.59 million / Previous year: Nil) Common Stock of \$
0.0001 each), fully paid up Less : Change in fair value of investment

Monument Bank	132.68		123.61
0.024 million (Corresponding period : Nil / Previous year: 0.024 million) Stock of GBP
50 each), fully paid up
	153.02	21.39	142.56

Klisma e-Services Private Limited ('Klisma'), an Associate of the Company has been dissolved w.e.f. August 10, 2021 vide dissolution order
passed by the Hon'ble National Company Law Tribunal, Mumbai Bench.

^ Cazena Inc. has been acquired by another corporation. Accordingly, based on the communication received from Cazena Inc. regarding the
realisable value, the Group had written off the entire amount of investment of Rs. 148

Persistent Systems Limited
Notes forming part of Condensed Interim Consolidated Financial Statements
6. Non-current financial assets : Investments (continued)

	As at	As at September 30, 2022 September 30, 2021	As at March 31, 2022
	In ₹ Million	In ₹ Million	In ₹ Million
DxNow 0.17 million Preferred Shares fully paid up (Corresponding period: 1 convertible note of USD 125,000 each, fully paid up/ / Previous year: 0.17 million Preferred Shares	10.17	9.28	9.47
fully paid up) Less : Change in fair value of investment	(10.17)	(9.28)	(9.47)
		٠	٠
Akumina Inc. 0.40 million Preference shares of \$ 0.443 each (Corresponding period: 1 convertible note of USD 146,429 each / Previous year : 0.40 million Preference shares of \$ 0.443 each)	14.44	13.18	13.45
	14.44	13.18	13.45
- Investments in Convertible Notes Ustyme Nil (Corresponding period: 1/ Previous year: Nil) convertible note of USD 250,000 each, fully paid up		18.56
Less : Change in fair value of investment		(5.93)
		12.63
Total Investments carried at Fair Value (C)	1,493.57	849.25	998.43
Total investments $(A) + (B) + (C)$	4,438.64	3,871.73	3,877.72
Aggregate amount of impairment in value / change in fair value of investments Aggregate amount of quoted investments	41.78 2.945.07	60.56 3.022.48	39.79 2,879.29
Aggregate amount of unquoted investments	1,535 35	909.81	1.038.22

* Investments, where the Group did not have joint-control or significant influence including situations where such joint-control or significant influence
was intended to be temporary, were classified as "investments in oth

6 (a) Details of fair value of investment in long term mutual funds

	As at	As at	As at
	September 30, 2022	September 30, 2021	March 31, 2021
	In ₹ Million	In ₹ Million	In ₹ Million
IDFC Mutual Fund	844 75	359.00	365.27
Axis Mutual Fund	475.36	437.05	471.15
	1.320.11	796.05	836 42

Notes forming part of Condensed Interim Consolidated Financial Statements

Non-current financial assets : Loans

	As at	As at	As at
		September 30, 2022 September 30, 2021	March 31, 2022
	In ₹ Million	In $\bar{\tau}$ Million	In ₹ Million
Carried at amortised cost
Other loans and advances
Unsecured, considered good - Loan to ESOP trust		1.880.00	3.522.00
Unsecured, credit impaired	0.58	0.58	0.58
	0.58	1.880.58	3.522.58
Less: Impairment allowance	(0.58)	(0.58)	(0.58)
		.880.00	3,522.00

Other non-current financial assets

	As at	As at	As at
		September 30, 2022 September 30, 2021	March 31, 2022
	In ₹ Million	In ₹ Million	In ₹ Million
Considered good
Carried at amortised cost
Deposits with banks (refer note 14)*	28.89	41.26	3.19
Add: Interest accrued but not due on bank deposits	0.06	0.09	0.17
(refer note 14)
Deposits with banks	28.95	41.35	3.36
Deposit with financial institutions	300.00		100.00
Add: Interest accrued but not due on deposit with financial institutions	7.00		0.41
Deposits with financial institutions	307.00	$\blacksquare$	100.41
Security deposits	336.53	184.14	236.97
Credit impaired
Deposit with financial institutions	430.00	430.00	430.00
Add: Interest accrued but not due on deposit with financial institutions	0.98	0.98	0.98
Less: Credit impaired	(430.98)	(430.98)	(430.98)
Deposits with financial institutions	۰	٠

* Out of the balance, fixed deposits of ₹ 28.34 million (Corresponding period : ₹ 2.09 million/ Previous year : ₹ 3.03 million) have been earmarked
against credit facilities and bank guarantees availed by the Company.

Deferred tax asset (net) *

	As at	As at	As at
		September 30, 2022 September 30, 2021	March 31, 2022
	In ₹ Million	In ₹ Million	In ₹ Million
Deferred tax liabilities
Differences in book values and tax base values of block of property, plant and equipment and intangible assets	77.06	118.41	89.31
Capital gains	33.91	37.93	51.11
Provision for shared based payments to employees		0.15
Others	30.74	42.99	7.54
	141.71	199.48	147.96
Deferred tax assets
Provision for leave encashment	246.50	192.68	224.94
Provision for long service awards	217.68	121.71	134.29
Allowance for expected credit loss	48.93	67.82	43.27
Differences in book values and tax base values of block of property, plant and equipment and intangible assets	225.24	89.16	170.18
Brought forward and current year losses	132.83	62.44	99 41
Tax credits	213.09	450.03	407.13
ROU asset and lease liability	36.72	34.10	31.71
Provision for shared based payments to employees	44.36	63.28	48.56
Others	242.06	183.51	111.19
	1,407.41	1,264 73	1,270.68
Deferred tax liabilities after set off
Deferred tax assets after set off	1,265.70	1,065.25	1,122.72

* Deferred tax assets and deferred tax liabilities have been offset wherever the Group has a legally enforceable right to set off current tax assets
against current tax liabilities and where the deferred tax assets and def

10. Other non-current assets

	As at	As at	As at
		September 30, 2022 September 30, 2021	March 31, 2022
	In ₹ Million	In ₹ Million	In ₹ Million
Capital advances (Unsecured, considered good)	674.20	1.023 33	104.95
Balances with government authorities	296 55	296.55	296.55
Prepayments	281.67	193.48	130.11
	1.252.42	1.513.36	531 61

Current financial assets : Investments

	As at	As at	As at
		September 30, 2022 September 30, 2021	March 31, 2022
	In ₹ Million	In ₹ Million	In ₹ Million
Designated as fair value through profit and loss
- Unquoted investments
Investments in mutual funds
Fair value of current mutual funds (refer Note 11a)	2.086 50	3.144.89	4.346 91
Total carrving amount of investments	2.086.50	3.144.89	4,346,91
Aggregate amount of unguoted investments	2.086 50	3.144.89	4,346,91

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

	As at	As at	As at
	September 30, 2022 September 30, 2021		March 31, 2022
	In ₹ Million	In ₹ Million	In ₹ Million
Aditya Birla Sun Life Mutual Fund	795 61	866.55	883 65
Axis Mutual Fund	65478	346 21	67270
UTI Mutual Fund	431.08	144 65	337.68
IDFC Mutual Fund	194 59	345 98	457 54
DSP Mutual Fund	10.44	50.22	443 20
Nippon India Mutual Fund (formerly known as Reliance Mutual Fund)	$\blacksquare$	50.09	472.88
Tata Mutual Fund		201.85
HDFC Mutual Fund		119.99
L&T Mutual Fund		40.00
Kotak Mutual Fund		453.70	521 63
ICICI Prudential Mutual Fund		276.40	399 94
SBI Mutual Fund		191.27	120.01
Sundaram Mutual Fund		57.98	37.68
	2.086.50	3.144.89	4.346.91

12. Trade receivables

	As at	As at	As at
		September 30, 2022 September 30, 2021	March 31, 2022
	In ₹ Million	In ₹ Million	In ₹ Million
Unsecured, considered good	13.238.51	6.515.21	9.484.29
Unsecured, credit impaired	205.65	244 30	165.78
	13,444.16	6,759.51	9,650.07
Less: Allowance for expected credit loss	(205.65)	(244, 30)	(165, 78)
	13,238.51	6,515.21	9,484.29

Notes forming part of Condensed Interim Consolidated Financial Statements

13. Cash and cash equivalents

	As at	As at	As at
	September 30, 2022	September 30, 2021	March 31, 2022
	In ₹ Million	In ₹ Million	In ₹ Million
Cash and cash equivalents as presented in cash flow statement
Cash in hand	0.29	0.23	0.24
Cheques on hand		1.34
Balances with banks
On current accounts #	3.511.39	4.682.35	2.337.96
On saving accounts	31.74	8.46	1.64
On exchange earner's foreign currency accounts	456.69	358.60	259.20
On deposit accounts with original maturity less than three months		125 56	$\blacksquare$
On escrow account**	407.26		378.95
	4,407.37	5,176.54	2,977.99

Of the cash and cash equivalent balance as at September 30, 2022, the Group can utilise ₹ 37.42 million (Corresponding period : ₹ 170.21 million,
Previous year: ₹ 35.75 million) only towards certain predefined activitie

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

14. Bank balances other than cash and cash equivalents

	As at September 30, 2022	As at September 30, 2021	As at March 31, 2022
	In ₹ Million	In ₹ Million	In ₹ Million
Deposits with banks*	4.405.69	6.368.39	5.986.55
Add: Interest accrued but not due on deposits with banks	70.95	139.90	18046
Deposits with banks (carried at amortised cost)	4.476.64	6,508.29	6.167.01
Less: Deposits with maturity more than twelve months from the balance sheet date disclosed under other non-current financial assets (refer note 8)	(28.89)	(41, 26)	(3, 19)
Less: Interest accrued but not due on non-current deposits with banks (refer note 8)	(0.06)	(0.09)	(0.17)
	4.447.69	6.466.94	6,163.65
Balances with banks on unpaid dividend accounts**	2.83	2.89	2.94
	4.450.52	6.469.83	6,166.59

* Out of the balance, fixed deposits of ₹ 624.57 million (Corresponding period: ₹ 644.49 million/ Previous year : ₹ 644.36 million) have been
earmarked against credit facilities and bank guarantees availed by the Group

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

Current financial assets : Loans

	As at	As at	As at
	September 30, 2022 September 30, 2021		March 31, 2022
	In ₹ Million	In ₹ Million	In ₹ Million
Loan to others (Unsecured, credit impaired)
LHS Solution Inc.	24.50	22.25	22.78
Interest accrued but not due at amortised cost	1.80	1.75	1.72
Less: Impairment	(26.30)	(24.00)	(24.50)
	$\blacksquare$

16. Other current financial assets

	As at	As at	As at
	September 30, 2022 September 30, 2021		March 31, 2022
	In ₹ Million	In $\bar{\tau}$ Million	In ₹ Million
Derivative instruments at fair value through OCI
Cash flow hedges
Foreign exchange forward contracts	۰.	139.04	84.59
Other receivables	16.10	16.09	16.10
Security deposits	$\blacksquare$	5.90	$\blacksquare$
Unbilled revenue	4.520 46	3.053.96	3,130.31
	4,536.56	3,214.99	3,231.00

	As at	As at	As at
	September 30, 2022	September 30, 2021	March 31, 2022
	In ₹ Million	In ₹ Million	In ₹ Million
Unsecured, considered good
Advances to suppliers
Advances recoverable in cash or kind or for value to be received	728.08	900.76	846.73
Prepayments	1.179.51	-	498.68
Excess fund balance with Life Insurance Corporation	98.95	1.82	42.19
Other advances
VAT receivable (net)	25 39	11.94	3.71
Service tax and GST receivable (net)	740.34	936.71	561.59
	76573	948.65	565.30
	2.772.27	1.851.23	1.952.90

Notes forming part of Condensed Interim Consolidated Financial Statements

18 Share capital

	As at In ₹ Million	As at September 30, 2022 September 30, 2021 In ₹ Million	As at March 31, 2022 In ₹ Million
Authorized shares (No. in million)
200 (Corresponding period/ Previous year: 200) equity shares of ₹ 10 each	2,000.00	2,000.00	2,000.00
	2.000.00	2.000.00	2,000.00
Issued, subscribed and fully paid-up shares (No. in million)
76.43 (Corresponding period/ Previous year: 76.43) equity shares of ₹10 each	764.25	764.25	764.25
Issued, subscribed and fully paid-up share capital	764.25	764.25	764.25

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

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

						(In Million)
	As at			As at	As at
	September 30, 2022			September 30, 2021	March 31, 2021
	No of shares	Amount ₹	No of shares	Amount ₹	No of shares	Amount ₹
Number of shares at the beginning of the period/year	76.425	764.25	76 425	764 25	76.425	764.25
Less: Changes during the period	$\overline{\phantom{a}}$
Number of shares at the end of the period/year	76.425	764.25	76 4 25	764.25	76 425	764.25

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 prop

In the event of liquidation of the Parent Company, the holders of equity shares will be entitled to receive remaining assets of the Parent Company, after distribution of all preferential
amounts. The distribution will be i

c) Aggregate number of shares bought back during the period of five years immediately preceding the reporting date

	For the period of five years ended	For the period of five years ended	For the period of five years ended
	September 30, 2022	September 30, 2021	March 31, 2022
	No in Million	No in Million	No in Million
Equity shares bought back	3.575	3.575	3.575

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

Name of the shareholder*	As at September 30, 2022			As at September 30, 2021		As at March 31, 2022
	No. in Million	% Holdina	No. in Million	% Holdina	No. in Million	% Holdina
Dr. Anand Deshpande and Mrs. Sonali Anand Deshpande	22.97	30.06	22.96	30.04	22.97	30.06
Schemes of Kotak Mutual Fund	3.82	5.00		$\sim$	3.69	482
Schemes of HDFC Mutual Fund	2.47	3.23	4.42	5.78	3.45	4.51

* 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.

Non-current financial liabilities : Borrowings

	As at	As at	As at
	September 30, 2022 September 30, 2021		March 31, 2022
	In ₹ Million	In ₹ Million	In ₹ Million
Borrowings carried at amortised cost
Unsecured term loans
Indian rupee loan from others	3.69	5.54	5.55
Interest accrued but not due on above loan	۰		0.08
Foreign currency loan from bank	5.338.14	39.65	4.319.72
	5.341.83	45.19	4.325.35
Less: Current maturity of long term borrowings	(2.27473)	(1.85)	(1,524.48)
Less: Current maturity of interest accrued but not due on term loan			(0.08)
	(2.274.73)	(1.85)	(1,524.56)
	3.067.10	43.34	2.800.79

Indian rupee Ioan from Government department ₹ 3.69 million (Corresponding period ₹ 5.54 million / Previous year ₹ 5.55 million) at 3% p.a. in ten equal annual
installments over a period of ten years commencing from Octo

Foreign currency Ioan from Government of Switzerland to a subsidiary company ₹ 34.57 million (Corresponding period ₹ 39.65 million) / Previous year ₹ 37.54
million). The interest free Ioan is given under a Covid-19 scheme

Foreign currency Ioan ₹ 5,303.57 million (Corresponding period: Nil / Previous year: ₹ 4,282.18 million). The Parent Company has provided the Letters of
Comfort to the Lender.
Key terms of Ioan are as below:

Repayment terms	Rs. Million	Interest rate
Loan 1: Repayable over a period of 3 years in equal instalments commencing from November 2021		1,412 33 SOFR + 155 bps
Loan 2: Repayable over a period of 3 years in equal instalments commencing from April 2022		2,372 71 SOFR + 145 bps
Loan 2: Repayable over a period of 3 years in equal instalments commencing from May 2022		1.518.53 SOFR + 145 bps
	5.303.57

Non-current financial liabilities : Lease liabilities

	As at	As at	As at
		September 30, 2022 September 30, 2021	March 31, 2022
	In ₹ Million	In ₹ Million	In ₹ Million
Lease liabilities	2.176.48	1.148.91	1,456.87
Less: Current portion of lease liabilities	(606.01)	(250.96)	(342.58)
	1,570 47	897.95	1,114.29
Movement of lease liabilities
	For the half year ended		For the year ended
		September 30, 2022 September 30, 2021	March 31, 2022
	In ₹ Million	In ₹ Million	In ₹ Million
Opening balance	1.456.87	938.17	938.17

Additions	933.49	332.50	831.31
Deletions			(42.81)
Add: Interest recognised during the period/year	55.09	43.50	84.06
Less: Payments made during the period/year	(198, 70)	(167.57)	(350.83)
Translation differences	(70.27)	2.31	(3.03)

	As at	As at	As at
		September 30, 2022 September 30, 2021	March 31, 2022
	In ₹ Million	In ₹ Million	In ₹ Million
Provision for employee benefits
- Gratuity	25.60	15.63	٠
- Long service awards	329.11	252.59	245.54
	354.71	268.22	245.54

22. Trade payables

Non current liabilities : Provisions

	As at September 30, 2022 September 30, 2021 In ₹ Million	As at In ₹ Million	As at March 31, 2022 In ₹ Million
Trade pavables
- Total outstanding dues of small enterprises and micro enterprises	17.21	45.55	10.30
- Total outstanding dues of creditors other than small enterprises and micro enterprises	5.818.97	3.434 33	4.288.41
	5.836.18	3.479.88	4,298.71

Disclosure of payable to vendors as defined under the 'Micro, Small and Medium Enterprise Development Act, 2006" is based on the information available with Discussion of payabre of ventures and about the window summation in Christmas Payabre Discussion of Payabre Discussion of such vendors under the said Act, as per the infimition received from them on requests made by the Pa

Other current financial liabilities

	As at	As at	As at
	September 30, 2022	September 30, 2021	March 31, 2022
	In ₹ Million	In ₹ Million	In ₹ Million
Capital creditors	168.91	28.72	204.49
Accrued employee liabilities	565.83	124.55	144.61
Unpaid dividend*	3.36	2.89	2.94
Other liabilities	21.26	$\blacksquare$	8.41
Payable to selling shareholders	5.522.43	11.66	3,901.75
Less: Non-current portion of Pavable to Selling Shareholders	(2.436.43)		(2,088.60)
	3,086,00	11.66	1,813,15
Derivative instruments at fair value through OC
Cash flow hedges
Foreign exchange forward contracts	512.24
	4,357.60	167.82	2,173,60

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

24 Other current liabilities

	As at	As at	As at

		September 30, 2022 September 30, 2021	March 31, 2022
	In ₹ Million	In ₹ Million	In ₹ Million
Unearned revenue	1,425.10	807.26	978.32
Advance from customers	36.17	252.73	43.21
Other payables
- Statutory liabilities	823.08	458.73	491.79
- Other liabilities*	63.96	179.85	58.40
	2.348.31	1.698.57	1,571.72

"Includes balance of ₹ 37.30 million (Corresponding period : ₹ 170.21 million / Previous year: ₹ 35.64 million ) to be utilised against certain predefined activities
specified in the agreement.

25. Current liabilities : Provisions

	As at	As at	As at
		September 30, 2022 September 30, 2021	March 31, 2022
	In ₹ Million	In ₹ Million	In ₹ Million
Provision for employee benefits
- Gratuitv	0.08	13.02	9.96
- Leave encashment	1,069.11	854 48	975.49
- Long service awards	34.56	20.97	24.54
- Other employee benefits	2.450 58	1.390.21	2,939 67
	3.554.33	2.278.68	3,949.66

26. Revenue from operations (net)

		For the quarter ended September 30, 2022 September 30, 2021		For the half year ended September 30, 2022 September 30, 2021

	In ₹ Million	In ₹ Million	In ₹ Million	In ₹ Million	In ₹ Million
Software services	19,565 38	13,146.78	37.719.53	25.122.72	55.721.12
Software licenses	921.03	365.71	1.547.99	689.03	1.386.34
	20,486.41	13,512.49	39,267.52	25,811.75	57,107.46

27 Other income

	For the quarter ended		For the half year ended		For the year ended
	September 30, 2022 September 30, 2021		September 30, 2022 September 30, 2021		March 31, 2022
	In ₹ Million	In ₹ Million	In ₹ Million	In ₹ Million	In ₹ Million
nterest income
On deposits carried at amortised cost	34.64	77.97	127.29	151.30	315.69
On Others	73.81	56.61	95.44	103.30	284.53
Other non operating income
Foreign exchange (loss) / gain (net)	(91.32)	10.33	(49.52)	119.36	269.41
(Loss) / Profit on sale of property, plant and equipment (net)	1.32	4.69	0.11	4.72	12.45
Net profit on sale/ fair valuation of financial assets designated as FVTPL	37.49	124.89	56 18	233.58	354.30
Excess provision in respect of earlier period/years written back	5.67	21.82	9.35	32.55	66.00
Miscellaneous income	18.94	27.84	51 48	67.37	137.17
	80.55	324.15	290.33	712.18	1.439.55

28. Personnel expenses

	For the quarter ended		For the half year ended		For the year ended
	September 30, 2022 September 30, 2021		September 30, 2022 September 30, 2021		March 31, 2022
	In ₹ Million	In ₹ Million	In ₹ Million	In ₹ Million	In ₹ Million
28.1 Employee benefits expense
Salaries, wages and bonus	11.101.90	7.31747	20.947.33	13.840.16	31.061.63
Contribution to provident and other funds	715.30	473.69	1.440.18	974.16	2.059.54
Staff welfare and benefits	191.65	112.30	394.57	236.94	521.70
Share based payments to employees	362.35	188.91	695.81	364 80	950.23
	12.371.20	8.092.37	23,477,89	15,416.06	34,593.10
28.2 Cost of professionals	2.638.00	1.999.54	5.240.82	3.803.79	7.974 18
	15.009.20	10.091.91	28.718.71	19.219.85	42,567.28

Other expenses

		For the quarter ended		For the half year ended	For the year ended
			September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021		March 31, 2022
	In ₹ Million	In ₹ Million	n ₹ Million	In ₹ Million	In ₹ Million
Travelling and conveyance	282.36	61.12	582.59	179.70	412.04
Electricity expenses (net)	30.82	21 25	55.16	34.93	76.07
Internet link expenses	3.49	16.50	38.16	35.28	68.59
Communication expenses	20.33	19.04	46.72	4276	87.05
Recruitment expenses	102.64	113.09	229.82	187.61	428.06
Training and seminars	34.59	18.33	71.20	35.74	119.58
Royalty expenses	17.25	26.46	32.80	39.09	92.54
Purchase of software licenses	575.99	397 56	1.207.70	802.06	1.606.97
Bad debts			٠		65.27
(Reversal) / Allowance for expected credit loss (net)	35.49	(6.67)	31.01	(27.36)	(105.06)
Rent	45.40	28.76	73.35	51.23	101.88
Insurance	15.63	10.91	30.01	23.25	50.34
Rates and taxes	33.71	22.57	64 97	45.12	99 30
Legal and professional fees	304.90	190.96	516.19	328.80	828.48
Repairs and maintenance
- Plant and Machinery	29.55	30.81	64.20	59.46	141 71
Buildings	11.05	5.21	19.26	9.81	20.46
- Others	8.03	6.96	14.09	13.73	26.96
Selling and marketing expenses	2.04	2.49	335	4.05	4.89
Advertisement, conference and sponsorship fees	51.07	18.08	91.03	32 11	85.67
Computer consumables	6.02	1.43	7.31	3.76	10.55
Auditors' remuneration	3.15	473	7.21	9.53	11.39
Corporate social responsibility expenditure	31.36	20 10	50.40	55.10	115.78
Books, memberships, subscriptions	24.80	12.69	36.94	16.15	32.90
Directors' sitting fees	1.47	1.77	4.15	4.05	7.43
Directors' commission	7.56	4 3 8	15.22	11.44	20.83
Debit balances written off		2.27		2.27
Loss / Impairment of non current investments		74 15		14768	148.40
Miscellaneous expenses	118,87	71.69	243.41	185.41	400.39
	1.797.57	1,176.64	3.536.25	2.332.76	4,958.47

30. Earnings per share

		əv. ∟anımıys per snare

			For the quarter ended	For the half year ended		For the year ended
			September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021			March 31, 2022
Numerator for Basic and Diluted EPS
Net Profit after tax (In ₹ Million)	(A)	2.200 14	1.617.53	4.316.26	3.130.01	6.903 86
Denominator for Basic EPS
Weighted average number of equity shares	(B)	74,296,833	76,425,000	74,220,038	76,425,000	76,425,000
Denominator for Diluted EPS
Number of equity shares	(C)	76,425,000	76,425,000	76,425,000	76,425,000	76,425,000
Basic Earnings per share of face value of ₹ 10 each (In ₹)	(A/B)	29.61	21.16	58.15	40.96	90.34
Diluted Earnings per share of face value of ₹10 each (In ₹)	(A/C)	28.79	21.16	56.48	40.96	90.34
			For the quarter ended	For the half year ended		For the year ended
			September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021			March 31, 2022
Number of shares considered as basic weighted average shares outstanding		76,425,000	76,425,000	76,425,000	76,425,000	76,425,000
Less: Weighted average number of treasury shares*		2,128,167		2,204,962
Number of shares considered as weighted average shares and potential shares outstanding		74,296,833	76,425,000	74,220,038	76,425,000	76,425,000

* Consequent to amendment in the trust deed w.e.f. April 1, 2022, the Group has assessed PSPL ESOP Management Trust to be a controlled entity and accordingly the same has been
consolidated w.e.f. April 1, 2022 on a prospec

31. Segment 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 assessi

The operating segments of the Group are:
a. Banking, Financial Services and Insurance (BFSI)
b. Healthcare & Life Sciences
c. Software, Hi-Tech and Emerging Industries

Particulars			BFS	Healthcare & Life Sciences	Software, Hi-Tech and	Total
					Emerging Industries

Revenue	Quarter ended	September 30, 2022	6.636.10	3.862.55	9.987.76	20.486.41
	Quarter ended	September 30, 2021	4.141.95	2,868,95	6,501,59	13.512.49
	Half Year ended	September 30, 2022	12.980.54	7,583.09	18,703.89	39.267.52
	Half Year ended	September 30, 2021	7,933.98	5,384.71	12,493.06	25,811.75
	Year ended	March 31, 2022	18,063.65	11,842.75	27,201.06	57,107.46
dentifiable expense
	Quarter ended	September 30, 2022	4,308.46	1,931,74	6,620.16	12,860,36
	Quarter ended	September 30, 2021	2,576.98	1,406.74	4,474.13	8,457.85
	Half Year ended	September 30, 2022	8,383,62	3,822.01	13,037,57	25,243,20
	Half Year ended	September 30, 2021	5,020,76	2,583.12	8,544.22	16,148,10
	Year ended	March 31, 2022	11,879.32	5,779.01	17,931,96	35,590,29
Seamental result
	Quarter ended	September 30, 2022	2.327.64	1,930.81	3,367,60	7,626,05
	Quarter ended	September 30, 2021	1,564.97	1,462.21	2.027.46	5,054.64
	Half Year ended	September 30, 2022	4,596.92	3,761.08	5,666,32	14,024.32
	Half Year ended	September 30, 2021	2,913,22	2,801.59	3.948.84	9,663,65
	Year ended	March 31, 2022	6,184,33	6,063,74	9.269.10	21,517.17
Unallocable expenses
	Quarter ended	September 30, 2022				4.750.56
	Quarter ended	September 30, 2021				3.202.47
	Half Year ended	September 30, 2022				8,539.86
	Half Year ended Year ended	September 30, 2021 March 31, 2022				6,168,99 13,713,93

Operating income
	Quarter ended	September 30, 2022				2.875.49
	Quarter ended	September 30, 2021				1,852.17
	Half Year ended Half Year ended	September 30, 2022 September 30, 2021				5.484.46 3.494.66
	Year ended	March 31, 2022				7,803,24
Other income (net of expenses)
	Quarter ended	September 30, 2022				80.55
	Quarter ended	September 30, 2021				324.15
	Half Year ended	September 30, 2022				290.33
	Half Year ended	September 30, 2021				712.18
	Year ended	March 31, 2022				1.439,55
Profit before taxes
	Quarter ended	September 30, 2022				2,956.04
	Quarter ended	September 30, 2021				2,176.32
	Half Year ended	September 30, 2022				5,774.79
	Half Year ended	September 30, 2021				4,206,84
	Year ended	March 31, 2022				9,242.79
Tax expense
	Quarter ended	September 30, 2022				755.90
	Quarter ended	September 30, 2021				558.79
	Half Year ended	September 30, 2022				1,458.53
	Half Year ended Year ended	September 30, 2021 March 31, 2022				1,076,83 2.338.93
Profit after tax
	Quarter ended	September 30, 2022				2.200.14
	Quarter ended	September 30, 2021				1,617.53
	Half Year ended	September 30, 2022				4,316.26
	Half Year ended	September 30, 2021				3,130,01
	Year ended	March 31, 2022				6,903.86

						(In ₹ Million)
Particulars			BFSI	Healthcare & Life Sciences	Software, Hi-Tech and Emerging Industries	Total
Segmental trade receivables (net)
	As at	September 30, 2022	2.915.88	2,622.71	7.699.92	13,238.51
	As at	September 30, 2021	1.165.94	1.643.47	3,705.80	6,515.21
	As at	March 31, 2022	1,816.26	1,949.27	5,718.76	9.484.29
Segmental Unbilled revenue
	As at	September 30, 2022	1,507.15	540.74	2.472.57	4,520.46
	As at	September 30, 2021	1,205,09	355,38	1,493.49	3,053.96
	As at	March 31, 2022	754.63	325.30	2,050,38	3,130,31
Unallocated assets
	As at	September 30, 2022				44,350.97
	As at	September 30, 2021				30,791.59
	As at	March 31, 2022	٠	٠	٠	41,526,37
Unallocated liabilities
	As at	September 30, 2022				62,109.94
	As at	September 30, 2021				40,360,76
	As at	March 31, 2022				54,140.97

Segregation of assets (other than trade receivables and unbilled reverue), liabilities, depectation and amortization and other non-cash expenses into various reportable segments have not been
presented as the assets are us

Geographical Information
The following table shows the distribution of the Group's consolidated sales by geographical market regardless of from where the services were rendered.

						(In ₹ Million)
Particulars			India	North America	Rest of the World	Total
Revenue
	Quarter ended	September 30, 2022	2,367.21	16,103.91	2.015.29	20.486.41
	Quarter ended	September 30, 2021	1,414.05	10.571.17	1.527.27	13.512.49
	Half Year ended	September 30, 2022	4,496.82	30,824.57	3.946.13	39.267.52
	Half Year ended	September 30, 2021	2.613.60	20.278.90	2.919.25	25.811.75
	Wear anded	March 31, 3832	6039.37	44.912.10 L	e hee oo	57.107.48

The revenue from individual customers in excess of ten percent of total revenue of the Group is ₹ 3,991.74 Million for the half year ended September 30, 2022 (Corresponding period:₹ 2,281,27

32 (a) Financial assets and liabilities

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

										In ₹ Million
Financial assets/ Financial liabilities		September 30, 2022			September 30, 2021			March 31, 2022		Fair value
	Ē	FVTOC	Amortised Cost	FVTPL	FVTOC	Amortised Cost	Ē	FVTOC	Amortised Cost	hierarchv*
inancial Assets:
Investments in equity instruments, preferred stock and	17346			40.57			16201			Level ₃
convertible notes
nvestments in bonds			2,945.07			3,02248			2,879.29
nvestments in mutual funds	3,406.61			3,940.94			5,183.33			eve
Loans						2,086 13			3,538.10
Deposit with banks and financial institutions (net)			4,783.64			5,508 29			6,26742
Cash and cash equivalents (including unpaid dividend)			4,410.20			5,17943			2,980.93
Trade receivables (net)			13,238.51			6,515.21			9,48429
Foreign exchange forward contracts					139.04			8459		evel ₂
Unbilled revenue			4,520 46			3,05396			3,130.31
Other non current financial assets			336.53			18414			23697
Other current financial assets						590
Total Financial Assets	3,580.07		30,23441	3,98151	139.04	26,555 54	5,345.34	8459	28,517.31

Financial Liabilities:
Borrowings (including accrued interest)			5,34183			45 19			1,32535
Trade payables			5,836 18			3,479.88			1,29871
Lease liabilities			2,176.48			1,14891			1,45687
Other financial liabilities (excluding borrowings)			6,28179			16782			1,262 20
Foreign exchange forward contracts		51224
Total Financial Liabilities		512 24	19,636.28			4,841.80			$14,343$ $13$

*Fair value hierarchy:
The fair value hierarchy is based on inputs to valuation technicals that are used to the obervable or unobservable and consists of the following three levels:
Level 1 — inputs are quoted prices inclu

32 b) Related party transactions

. Control of the Group's annual financial statements for the ended March 31, 2022 for the full names and other details of the
Group's related parties.

The Parent Company's significant related party transactions during the period ended and outstanding balances as at September 30, 2022, September 30, 2021 and March 31, 2022 are with its subsidiaries with whom the Parent Co

	33 Contingent liabilities			(In ₹ Million)
Sr No		September 30, 2022	September 30, 2021 As at	March 31, 2022
ଟ	Claims against the company not acknowledged as debt* Indirect tax matters
	(i) In respect to the order passed by the Learned Principal Commissioner of Service Tax, Pune, for Service tax under import of The Parent Company has paid ₹ 165.58 million under protest towards the demand and the same forms part of the GST receivable services on reverse charge basis for the Financial Year 2014-15, the Parent Company has filed an appeal against the order passed If the appeal filed as mentioned above results in a demand, there will be no impact on the profitability as the Parent Company will be by Learned Principal Commissioner of Service Tax, Pune with the Hon'ble Central Excise and Service Tax Appellate Tribunal eligible to claim credit/refund for the amount paid (CESTAT) on September 23, 2017 balance.	17378	17378	17378
	nas filed an application with Directorate General of Foreign Trade Based on the documents filed with relevant authorities and based on the consultations with subject matter specialists, the Parent (ii) In respect of export incentives pertaining to previous periods amounting to ₹ 255.52 million, which have been refunded under Company believes that its position is most likely be upheld on ultimate resolution. protest with interest of ₹ 41.03 million, the Parent Company (DGFT)	296.55	296.55	296.55
	(iii) Other Pending litigations in respect of Indirect taxes.	785	35 ₁₃	13.53
ฺี	Income tax demands disputed in appellate proceedings	1,023.34	463.61	85502
$\sim$ Ξ	Letters of comfort on behalf of subsidiary ( USD 65 Million (Corresponding period : Nil / Previous year : USD 60 Million) ) Guarantees and Letter of Comfort on behalf of Subsidiaries Guarantees given on behalf of subsidiaries	3,452.82 5,28775	4,000.81	3,522 19 4,547 40

*The Parent Company, based on independent legal opinions and judgments in favour of the Parent Company in the earlier years, believes that the liabilities with respect to the above matters is not likely to arise
and theref

Persistent Systems Limited
Notes forming part of Condensed Interim Consolidated Financial Statements

Notes forming part of consolidated financial statements

$34$ Business Combinations

The acquisition of the businesses is accounted for using the acquisition method of accounting under Ind AS 103 Business Combinations.

In case of acquistions, the Goodwill is comprised of expected synergy benefit from combining operations and value of assembled work force which do not qualify for separate recognition.

Deferred purchase consideration in form of Earnouts is payable upon achievement of revenue and gross margin thresholds as specified in the agreements. The estimated range of outcome of payment of the same is assumed at 90%.

Entities acquisition

On April 29, 2022, the Parent Company acquired MediaAgility India Private Limited.
Further, on May 4, 2022, Persistent Systems Inc. USA, a wholly-owned subsidiary of the Parent Company, completed the acquisition of MediaAg the UK, Mexico, and Singapore. The acquired companies have been together referred to as "Media Agility" in the notes elsewhere.

The acquisition of the said businesses is accounted for using the acquisition method of accounting under Ind AS 103. The Group is in the process of performing the complete exercise of purchase price allocation of assets and liabilities assumed as at the reporting date. The Group has exercised the option available under Ind AS 103, which provides the Group a period of twelve months from the acquisition date for completing the accounting of purchase price allocation on provisional basis.

MediaAgility is a global cloud transformation services provider with deep expertise building scalable, cloud-based solutions as a Google Cloud Premier Partner. The Company
provides cloud-native application development and

The fair value of amount of consideration is ₹ 5,534.75 million (including deferred purchase consideration of ₹ 1,168.18 million.)

Purchase price allocation :

Particulars	In ₹ Million
Current Assets
Cash and & cash equivalents	622.66
Other Bank Balances	20.15
Trade receivables	1.062.23
Other current assets	18.29
Other current financial assets	313.91
Current Tax Assets (net)	18.15
Non-current assets
Property, Plant and Equipment	11.63
Other non current assets	100.72
I oans	1.83
Deferred Tax Assets	10.39
Provisional intangible assets*	4,688,95
Subtotal	6,868.91
Current liabilities
Trade and other payables	1.037.75
Borrowings	14.73
Other current liabilities	235.29
Provisions	26.43
Non current liabilities
Provisions	19.96
Subtotal	1,334.16
Net assets taken over	5,534.75

*Based on provisional purchase price allocation, the Group has recognised the provisional intangible assets represented by contractual rights amounting to ₹ 1,941.88 million and goodwill amounting to ₹ 2,747.07 million.

Revenue of ₹ 1,098.89 million for the period ended September 30, 2022 is included in the financial statements. The profit included for the period ended September 30, 2022 is ₹ 227.17 million.

Purchase price allocation of business acquisitions of Shree Partners India Private Limited and Shree Partners LLC b.

On November 18, 2021 the Persistent Systems Limited (PSL) had entered into an Agreement effecting business acquisition of Shree Infosoft Pvt. Ltd., India ('Shree Infosoft') on September 29, 2021 to acquire its customer relations together with the skilled employees and processes.

Along with this transaction, Persistent Systems Inc. (PSI), the wholly owned subsidiary of the Parent company, had entered into an Agreement effecting business acquisition of
Shree Partners LLC, USA, ("Shree Partners")

After the acquisition of business, the Group did not hold any equity interest in Shree Infosoft and Shree Partners.

The acquisition was accounted for using the acquisition method of accounting on provisional basis availing the exemption under Ind AS 103. During the period, the purchase price allocation was completed and the purchase is allocated to assets acquired and liabilities assumed based on fair values at the date of acquisition as follows:

The fair value amount of consideration paid/payable is ₹472.73 million (including deferred purchase consideration of ₹189.86 million)

Particulars	In $\bar{\tau}$ Million
Purchase consideration	472.73
Allocated to:
Property, plant and equipment	1.97
Acquired Contractual Rights	211.26
Goodwill	259.50

Notes forming part of consolidated financial statements

The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the company towards Provident Fund and 35 Gratuity. The Ministry of Labour and Employment has released draft rules for the Code on Social Security, 2020 on November 13, 2020, and has invited suggestions from stakeholders which are under active consideration by the Ministry. The Group will assess the impact and its evaluation once the subject rules are notified and will give appropriate impact in its financial statements in the period in which the Code becomes effective and the related rules to determine the financial impact are published.
The Parent Company has deposits of ₹ 430 million with the financial institutions viz. Infrastructure Leasing & Financial Services Ltd. (IL&FS) and IL&FS 36 Financial Services Ltd. (referred to as "L&FS Group") as on the balance sheet date. These were due for maturity from January 2019 to June 2019. In view
of the uncertainty prevailing with respect to recovery of outstanding these deposits, along with interest accrued thereon till the date the deposits had become doubtful of recovery. The Management is hopeful of recovery though with a time lag. The Parent Company continues to monitor developments in the matter and is committed to take steps including legal action that may be necessary to ensure full recovery of the said deposits
$37$ Finance costs include interest on lease liability of ₹ 55.09 million under finance costs (Corresponding period: ₹ 43.67 million / Previous year ₹ 84.06 million) and notional interest on amounts due to selling shareholders ₹ 31.46 million (Corresponding period: Nil / Previous year: ₹ 15.73 million).
The financial statements are presented in ₹ million and decimal thereof except for per share information or as otherwise stated. 38
39 Previous year's figures have been regrouped where necessary to conform to current year's classification.

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

Digitally signed by SHASHI SHASHI TADWALKAR TADWALKAR Date: 2022.10.19

Shashi Tadwalkar

Partner Membership No.: 101797 For and on behalf of the Board of Directors of Persistent Systems Limited

rndees K

Anand Deshpande

Dr. Anand Deshpande Chairman and Managing Director DIN: 00005721

Place: Pune Date: October 19, 2022

Executive Director and

Chief Financial Officer DIN: 06475949

Sunil Sapre

Sandeep Kalra Executive Director and Chief Executive Officer DIN: 02506494

Place: Pune Date: October 19, 2022

Independent Director

Digitally signed by
Praveen Purushottam

Kadle
Date: 2022.10.19 17:04:36

Prayeen

Kadle

Purushottam

Praveen Kadle

DIN: 00016814

Sunil Sapre unil Sapre (Oct 19, 2022 16:05 GMT+5.5)

Amit Atre

Amit Atre (Oct 19, 2022 15:56 GMT+5.5) Amit Atre Company Secretary

Membership No. A20507

Place: Pune Date: October 19, 2022

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

Independent Auditor's Report on the Audit of the Condensed Interim Standalone Financial Statements for the quarter and half year ended 30 September 2022

To the Board of Directors of Persistent Systems Limited

Opinion

1. We have audited the accompanying condensed interim standalone financial statements of Persistent Systems Limited ('the Company'), which comprise the Condensed Balance Sheet as at 30 September 2022, the Condensed Interim Statement of Profit and Loss (including Other Comprehensive Income) for the quarter and half year ended 30 September 2022, the Condensed Statement of Cash Flows and the Condensed Statement of Changes in Equity for the half year ended on that date, and a summary of the significant accounting policies and other explanatory information (hereinafter referred to as the "condensed interim standalone financial statements").
1. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid condensed interim standalone financial statements give the information required by the Companies Act, 2013 ('Act') in the manner so required and give a true and fair view in accordance with Indian Accounting Standard 34, Interim Financial Reporting ('Ind AS 34') specified under section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules, 2015 (as amended) and other generally accepted accounting principles in India, of the state of affairs of the Company as at 30 September 2022, its profit (including other comprehensive income) for the quarter and half year ended on the date, its cash flows and the changes in equity for the half year ended on that date.

Basis for Opinion

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

Page 1 of 3

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

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

1. The accompanying condensed interim standalone financial statements have been approved by the Company's Board of Directors. The Company's Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation and presentation of these condensed interim standalone financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows, and changes in equity of the Company in accordance with the accounting principles generally accepted in India, in accordance with Ind AS 34 specified under section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules, 2015 (as amended). This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the condensed interim financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
1. In preparing the condensed interim standalone financial statements, the Board of Directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
1. Those Board of Directors is also responsible for overseeing the Company's financial reporting process.

Auditor's Responsibilities for the Audit of the Condensed Interim Standalone Financial Statements

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

Page 2 of 3

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

Persistent Systems Limited Independent Auditor's Report on the Audit of the Condensed Interim Standalone Financial Statements for the quarter and half year ended 30 September 2022

x Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management;
x Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the condensed interim standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern;
x Evaluate the overall presentation, structure and content of the condensed interim standalone financial statements, including the disclosures, and whether the condensed interim standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
1. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
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's Registration No:001076N/N500013

SHASHI TADWALKAR Digitally signed by SHASHI TADWALKAR Date: 2022.10.19 18:19:17 +05'30'

Shashi Tadwalkar Partner Membership No:101797

UDIN:22101797BAGBAV4067

Place: Pune Date: 19 October 2022

Page 3 of 3

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

Chartered Accountants

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

	Notes	As at	As at	As at
		September 30, 2022 In ₹ Million	September 30, 2021 In ₹ Million	March 31, 2022 In ₹ Million
ASSETS
Non-current assets
Property, plant and equipment Capital work in progress	4.1	3,088.17 1,149.55	2.601.22 7.15	2.733.61 1,071.02
Right of use assets	4.2	1,521.92	556.78	671.63
Goodwill	4.3	54 39	$\blacksquare$	$\blacksquare$
Other intangible assets	4.4	724.12 6,538.15	176.27 3,341.42	780.73 5,256.99
Financial assets
- Investments - Loans	5 6	11,461.95 3,753.83	8,165.99 1,880.00	8.734.81 3,943.68
- Other non current financial assets	$\scriptstyle{7}$	570.96	3,118.65	226.68
Deferred tax assets (net)	8	455.47	222.47	266.72
Other non-current assets	9	1,252.42 24,032.78	1,417.97 18,146.50	557.98 18,986.86

Current assets
Financial assets - Investments	10	2,086.50	3,144.87	4,346.91
- Trade receivables (net)	11	7,061.01	3,383.92	4,426.84
- Cash and cash equivalents - Bank balances other than cash and cash equivalents	12 13	1,218.27 4,360.79	638.75 6,308.38	563.67 6,038.02
- Loans	14
- Other current financial assets Other current assets	15 16	3,448.32 1,991.70	2,762.01 1.535 35	3,724.83 1,371.26
		20,166.59	17,773.28	20,471.53

TOTAL		44,199.37	35,919.78	39,458.39
EQUITY AND LIABILITIES
EQUITY
Equity share capital	17	764.25	764.25	764.25
Other equity		35,464.92	29.811.43	32,424 60
		36,229.17	30,575.68	33,188.85
LIABILITIES
Non current liabilities Financial liabilities
- Borrowings	18	1.84	3.69	3.70
- Lease liabilities Provisions	19 20	1,118.98 329.11	518.87 252.59	611.75 245 54
		1,449.93	775.15	860.99
Current liabilities
Financial liabilities - Borrowings	18	1.85	1.85	1.93
- Lease liabilities	19	422.82	11283	146.51
- Trade payables	21
-total outstanding dues of micro enterprises and small enterprises -total outstanding dues of creditors other than micro enterprises and small enterprises		17.21 1,069.20	45.55 856.59	10.30 844.68
- Other financial liabilities	22	820.85	166.12	382.98
Other current liabilities Provisions	23 24	2,103.72 1,826.77	1,961.69 1,168.02	1,509.04 2,269.73
Current tax liabilities (net)		257.85	256.30	243.38
		6,520.27	4,568.95	5,408.55
TOTAL		44,199.37	35,919.78	39,458.39
Summary of significant accounting policies	3
The accompanying notes are an integral part of the condensed interim financial statements.
As per our report of even date
For Walker Chandiok & Co LLP		For and on behalf of the Board of Directors of
Chartered Accountants Firm Registration No.: 001076N/N500013		Persistent Systems Limited	Sandeep Kalra
Digitally signed by SHASHI SHASHI TADWALKAR
TADWALKAR Date: 2022.10.19		Anand Iestrpande		Praveen Digitally signed by Praveen Purushottam Kadle Purushottam Date: 2022.10.19 17:11:22 $+05'30'$ Kadle
Shashi Tadwalkar Partner		Dr. Anand Deshpande Chairman and Managing Director	Sandeep Kaira Executive Director and Chief Executive Officer	Praveen Kadle Independent Director
Membership No: 101797		DIN: 00005721	DIN: 02506494	DIN: 00016814
		Place: Pune Date: October 19, 2022	Place: Pune Date: October 19, 2022	Place: Pune Date: October 19, 2022

Sunil Sapre Sunil Sapre (Oct 19, 2022 16:07 GMT+5.5)			Amit Atre Amit Atre (Oct 19, 2022 15:57 GMT+5.5)
		Sunil Sapre Executive Director and Chief Financial Officer	Amit Atre Company Secretary

DIN: 06475949

Place: Pune
Date : October 19, 2022

Membership No. A20507

Place: Pune
Date : October 19, 2022

	Notes	For the quarter ended		For the half year ended		For the year ended
		September 30, 2022	September 30, 2021	September 30, 2022	September 30, 2021	March 31, 2022
		In ₹ Million	In ₹ Million	In ₹ Million	In ₹ Million	In ₹ Million
Income
Revenue from operations (net)	25	12,247.66	8,469.85	23,268.42	16,118.19	35,754.80
Other income Total income (A)	26	107.16 12,354.82	281.65 8,751.50	344 93 23,613.35	626.33 16,744.52	1,324.57 37,079.37

Expenses
Employee benefits expense	27.1	7,758.59	5,109.82	14,713.87	9,551.36	21,882.72
Cost of professionals	27.2	601.74	47267	1,029.45	809.92	1,461.91
Finance costs (refer note 36) Depreciation and amortization expense	4.5	29.32 332.24	17.19 19779	49.18 616.77	35.69 360.50	68.78 837.57
Other expenses	28	1,300.35	875.13	2,560.54	1,698.28	3,707.78
Total expenses (B)		10,022.24	6,672,60	18,969.81	12,455.75	27,958.76

Profit before tax (A - B)		2,332.58	2,078.90	4,643.54	4,288.77	9,120.61
Tax expense Current tax		603.72	518.83	1,215.96	1,056.05	2,236.61
Tax charge in respect of earlier years						13.48
Deferred tax (credit)/ charge		(22.19)	36.12	(72.26)	47.82	11.86
Total tax expense		581.53	554.95	1,143.70	1,103.87	2,261.95
		1,751.05	1,523.95	3,499.84	3,184.90	6,858.66
Profit for the period / year (C)
Other comprehensive income
Items that will not be reclassified to profit or loss (D)
Remeasurements of the defined benefit liabilities / asset - Income tax effect on above		(24.24)	(52.60) 13.13	39 78	(130.64) 32.87	(255.00)
		5.75 (18.49)	(39.47)	(10.36) 29.42	(97.77)	64.18 (190.82)
Items that will be reclassified to profit or loss (E)
- Effective portion of cash flow hedge		(178.81)	29.55	(462.84)	(97.55)	(130.50)
- Income tax effect on above		45.01	(7.44)	116 49	24.55	32.84
		(133.80)	22.11	(346.35)	(73.00)	(97.66)
Total other comprehensive income for the period / year (D) + (E)		(152.29)	(17.36)	(316.93)	(170.77)	(288.48)
Total comprehensive income for the period / year $(C) + (D) + (E)$		1,598.76	1,506.59	3,182.91	3,014,13	6,570.18
[Nominal value of share ₹10 (Corresponding period / Previous year: ₹10)] Basic (In ₹)	29	22.91	19.94	45.79	41.67	89.74
Diluted (In ₹)		22.91	19.94	45.79	41.67	89.74
Summary of significant accounting policies	3
The accompanying notes are an integral part of the condensed interim financial statements.
As per our report of even date
For Walker Chandiok & Co LLP				For and on behalf of the Board of Directors of
Chartered Accountants				سر Pe rsistent Systems Limite
Firm Registration No.: 001076N/N500013				andeep Sandeep Kalra (Oct ²⁹ , 2022 17:01 GMT+5.5)	raera
Digitally signed by						Digitally signed by
SHASHI SHASHI TADWALKAR				Anand Deshpande		Praveen Praveen Purushottam
TADWALKAR Date: 2022.10.19						Purushottam Kadle Date: 2022.10.19 Kadle
Shashi Tadwakar				Dr. Anand Deshpande	Sandeep Kaira	17:11:53 +05'30' Praveen Kadle
Partner				Chairman and Managing Director	Executive Director and Chief Executive Officer	Independent Director
Membership No: 101797				DIN: 00005721	DIN: 02506494	DIN: 00016814
				Place: Pune Date: October 19, 2022	Place: Pune Date: October 19, 2022 Date: October 19, 2022	Place: Pune

Sunil Sapre				Amit Atre-
	Sunil Sapre (Oct 19, 2022 16:07 GMT+5.5)			Amit Atre (Oct 19, 2022 15:57 GMT+5.5)	Amit Atre
				Sunil Sapre Executive Director and	Company Secretary
				Chief Financial Officer
				DIN: 06475949	Membership No. A20507

Place: Pune Date: October 19, 2022				Place: Pune Date: October 19, 2022	Place: Pune Date: October 19, 2022

Persistent Systems Limited
CONDENSED INTERIM CASH FLOW STATEMENT FOR THE HALF YEAR ENDED SEPTEMBER 30, 2022

			For the half year ended	For the year ended
			September 30, 2022 September 30, 2021	March 31, 2022
		In ₹ Million	In ₹ Million	In ₹ Million
Cash flows from operating activities
Profit before tax		4.643.54	4,288.77	9.120.61
Adiustments for: Interest income		(324.75)	(251.23)	(593, 58)
Finance cost		49.18	35.69	68.78
Dividend income				(53.16)
Depreciation and amortization expense		616.77	360.50	837 57
Unrealised exchange (gain) / loss (net)		(127.12)	30.66	26.38
Exchange loss on derivative contracts		133,98	57.87	79.38
Exchange (gain) / loss on translation of foreign currency cash and cash equivalents		11.23	(3.59)	0.29
Bad debts				12.12
Change in provision for expected credit loss (net)		11.61	(475)	(29.97)
Employee stock compensation expenses		562.24	277.34	739.52
Remeasurements of the defined benefit liabilities / assets (before tax effects)		39.78	(64.89)	(190.82)
Excess provision in respect of earlier years written back		(0.95)		(15, 53)
Profit on sale/ fair valuation of financial assets designated as FVTPL		(51.41)	(218.20)	(338, 78)
Profit on sale of Property, Plant and Equipment (net)		(1.16)	(4.72)	(12.31)
Operating profit before working capital changes		5,562.94	4,503.45	9,650.50
Movements in working capital:
Increase in other non current assets		(156.75)	(16.99)	(40.48)
Increase in other non current financial assets		(112.84)	(13.63)	(70.68)
Decrease / (Increase) in other current financial assets		327.78	(765.82)	(1,594,52)
(Increase) / Decrease in other current assets		(646.53)	120.82	285.67
Increase in trade receivables		(2,447,62)	(440.16)	(1,470.96)
Increase in trade payables, current liabilities and non current liabilities		1,683.43	566.79	273 76
(Decrease) / Increase in provisions		(358.44) 3,851 97	34.08 3,988.54	1,144.27 8,177.56
Operating profit after working capital changes Direct taxes paid (net of refunds)		(1, 211.85)	(1, 144, 77)	(2,318,85)
Net cash generated from operating activities	(A)	2,640.12	2,843.77	5,858.71

Cash flows from investing activities
Payment towards capital expenditure (including intangible assets, capital advances and capital creditors)		(2,471,28)	(2,027,12)	(2,728.84)
Acquisition of assets through business combination				(628.87)
Proceeds from sale of Property, Plant and Equipment		1.25	5.05	13.19
Share application money paid			(2,969,60)
Investment in wholly owned subsidiaries		(2.652.93)		(645, 52)
Recovery / (Disbursement) of Loan from / to ESOP trust		172.00	(1,880.00)	(3,522.00)
Purchase of bonds		(62.97)	(562.62)	(711.90)
Proceeds from sale of bonds		31.49	239 35	499 95
Investments in mutual funds		(18,060,60)	(15,686,10)	(33, 456, 80)
Proceeds from sale / maturity of mutual funds		20,366.55	19,127.50	35.762.24
Proceeds from maturity of bank deposits having original maturity over three months		1,542,42	900,50	1,249.81
Investment in deposit with financial institutions		(200.00)		(100.00)
Inter corporate deposits given to a wholly owned subsidiary				(419.59)
Interest received		385.23	363.04	709.07
Dividend received				53.16
Net cash used in investing activities	(B)	(948.84)	(2,490,00)	(3,926,10)
Cash flows from financing activities
Repayment of long term borrowings		(1.86)	(1.85)	(1.84)
Payment of lease liabilities		(133.65)	(85.13)	(173.67)
Dividend paid		(840.68)	(458.55)	(1,987.05)
Interest paid		(49.26)	(35.80)	(68.81)
Net cash used in financing activities	(C)	(1,025,45)	(581.33)	(2, 231, 37)

CONDENSED INTERIM CASH FLOW STATEMENT FOR THE HALF YEAR ENDED SEPTEMBER 30, 2022

	For the half year ended		For the year ended
	September 30, 2022 September 30, 2021		March 31, 2022
	In ₹ Million	In ₹ Million	In ₹ Million
Net (decrease)/ increase in cash and cash equivalents $(A + B + C)$	66583	(227.56)	(298, 76)
Cash and cash equivalents at the beginning of the year	563.67	862.72	862.72
Effect of exchange differences on translation of foreign currency cash and cash equivalents	(11.23)	359	(0.29)
Cash and cash equivalents at the end of the period/ year	1,218,27	638.75	563.67
Components of cash and cash equivalents
Cash on hand (refer note 12)	0.10	0.07	0.09
Balances with banks
On current accounts # (refer note 12)	729.74	271.62	302.74
On saving accounts (refer note 12)	31 74	846	1.64
On exchange earner's foreign currency accounts (refer note 12)	456.69	358.60	259.20
Cash and cash equivalents	1,218,27	638.75	563.67

Of the cash and cash equivalent balance as at September 30, 2022, the Company can utilise ₹ 37.42 million (Corresponding period: ₹ 170.21 million, Previous year: ₹ 35.75 million) only towards certain predefined activities specified in the agreement.

Summary of significant accounting policies - Refer note 3

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

As per our report of even date

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

Digitally signed by SHASHI SHASHI TADWALKAR TADWALKAR Date: 2022.10.19

Shashi Tadwalkar Partner

Membership No.: 101797

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

Sandeep Kalra

Anand Destrpande

Dr. Anand Deshpande Chairman and Managing Director DIN: 00005721 Place: Pune

Sandeep Kalra Executive Director and Chief Executive Officer DIN: 02506494 Place: Pune

Date: October 19, 2022

Sunil Sapre Sunil Sapre (Oct 19, 2022 16:07 GMT+5.5)

Sunil Sapre
Executive Director and
Chief Financial Officer
DIN: 06475949

Place: Pune Date: October 19, 2022

Amit Atre (Oct 19, 2022 15:57 GMT+5.5) Amit Atre Company Secretary

Membership No. A20507

Place: Pune Date: October 19, 2022

Place: Pune Date: October 19, 2022 Praveen
Purushottam Kadle
Purushottam Kadle
1930: 105300
1932-00301 Praveen Kadle

Independent Director

DIN: 00016814

Place: Pune Date: October 19, 2022

Amit Atre

Persistent Systems Limited
CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY FOR HALF YEAR ENDED SEPTEMBER 30, 2022

A. Equity share capital
(Refer note 17)

		(In ₹ Million)
Balance as at April 1, 2022	Changes in equity share capital during the period	Balance as at September 30, 2022

764.25		764.25
		(In ₹ Million)
Balance as at April 1, 2021	Changes in equity share capital during the period	Balance as at September 30, 2021

764.25	۰	764.25
		(In ₹ Million)
Balance as at April 1, 2021	Changes in equity share capital during the year	Balance as at March 31, 2022

764 25		764.25

CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY FOR HALF YEAR ENDED SEPTEMBER 30, 2022

B. Other equity

						$(ln ₹$ Million)
Particulars		Reserves and surplus	tems of other comprehensive income	Total
	General reserve	Share options outstanding reserve	Capital redemption reserve	Retained earnings	Effective portion of cash flow hedges
Balance as at April 1, 2022	17,376.65	1.144.84	35.75	13.825.56	41.80	32,424.60
Profit for the period				3,499.84		3.499.84
Items recognised in / from other comprehensive income for the period				29.42	(346.35)	(316.93)
Dividend				(840.68)		(840.68)
Employee stock compensation expenses		562.24				562.24
Employee stock compensation expenses of subsidiaries		135.85				135.85
Balance as at September 30, 2022	17.376.65	1.842.93	35.75	16.514.14	(304.55)	35,464.92

		Reserves and surplus	tems of other comprehensive income
Particulars	General reserve	Share options outstanding reserve	Capital redemption reserve	Retained earnings	Effective portion of cash flow hedges	Total
Balance as at April 1, 2021	14.356.35	471.20	35.75	11.888.23	139.46	26.890.99
Net profit for the period				3.184.90		3.184.90
Items recognised in / from other comprehensive income for
the period		-		(97.77)	(73.00)	(170.77)
Dividend				(458, 55)	$\overline{\phantom{0}}$	(458.55)
Employee stock compensation expenses		277.34			-	277.34
Employee stock compensation expenses of subsidiaries		87.52				87.52
Balance as at September 30, 2021	14.356.35	836.06	35.75	14 516 81	66.46	29.811.43

		Reserves and surplus	Items of other comprehensive income	Total
Particulars	General reserve	Share options outstanding reserve	Capital redemption reserve	Retained earnings	Effective portion of cash flow hedges
Balance as at April 1, 2021	14.356 35	471.20	35.75	11.888.23	139.46	26,890.99
Profit for the year				6.858.66		6,858,66
tems recognised in / from other comprehensive income for the period				(190, 82)	(97, 66)	(288, 48)
Dividend				(1.987.05)		(1.987.05)
Transfer to general reserve	2.743.46			(2,743.46)
Adjustments towards employees stock options	276.84	(276.84)
Employee stock compensation expenses		739.52				739.52
Employee stock compensation expenses of subsidiaries		210.96				210.96
Balance as at March 31, 2022	17,376.65	1,144.84	35 75	13,825.56	41.80	32.424.60

Summary of significant accounting policies - Refer note 3

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

As per our report of even date

For Walker Chandiok & Co LLP Chartered Accountants

Firm Registration No: 001076N/N500013

$\left.\begin{array}{l|l} \text{SHASH} & \text{Digitally signed by} \ \text{SHASH} & \text{SHASH} & \text{TADWALKAR} \ \text{TADWALKAR} & \text{Pate: } 2022.10.19 \ \text{TABWALKAR} & \text{18:23:43 +05'30'} \end{array}\right.$ Shashi Tadwalkar

Partner

Membership No.: 101797

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

Kalra Sandeep . ndeep Kalra (Oct.

Executive Director and Chief
Executive Officer

Anand Destrpande

Dr. Anand Deshpande Chairman and Managing Director

DIN: 00005721

Place: Pune Date: October 19, 2022

Independent Director

Praveen Kadle

DIN: 00016814

Praveen
Purushottam Kadle
Purushottam Kadle
19530'
19530'

(In ₹ Million)

SUNIL SADYB
Sunil Sapre (Oct 19, 2022 16:07 GMT+5.5)

Sunil Sapre

Executive Director and Chief Financial Officer DIN: 06475949

Place: Pune Date: October 19, 2022 Amit Atre Amit Atre (Oct 19, 2022 15:57 GMT+5.5)

Amit Atre Company Secretary

Sandeep Kalra

DIN: 02506494

Membership No. A20507

Place: Pune Date: October 19, 2022

CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY FOR HALF YEAR ENDED SEPTEMBER 30, 2022

Nature and purpose of reserves

a) General reserve

General reserve represents amounts transferred from profit/ loss for the year and the amounts from Share options outstanding reserve to the extent they relate to exercise/ expiry of employee share options. It is a free reserve in terms of section 2 (43) of the Companies Act, 2013.

b) Share options outstanding reserve

Share options outstanding reserve represents the cumulative expense recognized for equity-settled transactions at each reporting date until the employee share options are exercised/ expired on which such amount is transferred to General reserve.

c) Capital redemption reserve

Capital redemption reserve represents the nominal value of the shares bought back and is created and utilised in accordance with Section 69 of the Companies Act, 2013.

d) Retained earnings

This reserve represents undistributed accumulated earnings of the Company as on the balance sheet date.

e) Cash flow hedge reserve

When a derivative is designated as cashflow hedging instrument the effective portion of changes in the fair value of derivative is recognised in Other comprehensive income (OCI) and accumulated in cashflow hedge reserve.

Cumulative gains or losses previously recognised in cashflow hedge reserve are recognised in the statement of profit and loss in the period in which such transaction occurs/ hedging instruments are settled/ cancelled.

Notes forming part of Condensed Interim Financial Statements

$\mathbf{1}$ 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 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.

The Board of Directors approved the condensed interim financial statements for the half year ended September 30, 2022 and authorised for issue on October 19, 2022.

$\overline{2}$ Basis of preparation

Historical cost convention and Indian Accounting Standards $2.1$

The condensed interim financial statements of the Company have been prepared on an accrual basis and under the historical cost convention except for certain financial instruments and equity settled employee stock options which have been measured at fair value. Historical cost is generally based on the fair value of consideration given in exchange of goods and services. The accounting policies are consistently applied by the Company during the period and are consistent with those used in 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.

$2.2$ Compliance with Ind AS

These condensed interim financial statements are prepared in accordance with Indian Accounting Standard (Ind AS) 34 Interim Financial Reporting, as prescribed by Section 133 of the Companies Act 2013 ("the Act") read with Companies (Indian Accounting Standards) Rules, 2021 and guidelines issued by the Securities and Exchange Board of India (SEBI). These condensed interim financial statements do not include all the information required for a complete set of financial statements under the applicable financial reporting framework.

23 New amendments issued but not effective

Ministry of Corporate Affairs ("MCA") notifies new standard or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. During half year ended September 30, 2022, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.

Reclassifications consequent to amendments to Schedule III $2.4$

The Ministry of Corporate Affairs amended the Schedule III to the Companies Act, 2013 on March 24, 2021 to increase the transparency and provide additional disclosures to users of financial statements. These amendments are effective from April 1, 2021.

Consequent to above, the Company has changed the classification/ presentation of (i) current maturities of long-term borrowings (ii) security deposits, in the corresponding previous period.

The Company has reclassified comparative amounts to conform with current period presentation as per the requirements of Ind AS 1. The impact of such classifications is summarised below:

Balance Sheet (extract)	September 30,2021 Increase/ September 30,2021 (Previously Reported) (Decrease)		(Restated)
Non-current assets
Loans	1.987.70	(107.70)	1,880.00
Other non-current financial assets	3.010.95	107.70	3,118.65
Current assets
Loans	6.00	(6.00)
Other current financial assets	2.756.01	6.00	2.762.01
Current Liabilities
Other financial liabilities	167.97	(1.85)	166.12
Borrowings		1.85	1.85

Notes forming part of Condensed Interim Financial Statements

$\overline{\mathbf{3}}$ Significant accounting policies

$3.1$ Use of estimates

The preparation of the condensed interm financial statements in conformity with Ind AS requires the Management to make estimates, judgments and assumptions. These estimates, judgments and assumptions affect the application of accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the period. The application of accounting policies that require critical accounting estimates involving complex and subjective judgments and the use of assumptions in these financial statements have been disclosed appropriately. Accounting estimates could change from period to
period. Actual results could differ from those estimates. Appropriate changes in estimates are made as the M .
becomes aware of changes in circumstances surrounding the estimates. Changes in estimates are reflected in the condensed interm financial statements in the period in which changes are made and, if material, their effects are disclosed in the notes to the condensed interm financial statements.

3.2 Critical accounting estimates

a) Revenue recognition

The Company's contracts with customers include promises to transfer multiple products and services to a customer. Revenues from customer contracts are considered for recognition and measurement when the contract has been approved by the parties to the contract, the parties to the contract are committed to perform their respective obligations under the contract, and the contract is legally enforceable. The Company assesses the services promised in a contract and identifies distinct performance obligations in the contract. Identification of distinct performance obligations to determine the deliverables and the ability of the customer to benefit independently from such deliverables, and allocation of transaction price to these distinct performance obligations involves significant judgment.

Revenue from fixed price maintenance type contracts is recognized rateably on a straight-line basis when services are performed through an indefinite number of repetitive acts over a specified period. Revenue from fixed-price maintenance type contracts is recognised rateably using a percentage-of-completion method when the pattern of benefits from the services rendered to the customer and the Company's costs to fulfil the contract is not even through the period of the contract because the services are generally discrete in nature and not repetitive. The use of a method to recognise such revenues requires judgment and is based on the promises in the contract and nature of the deliverables.

The Company uses the percentage-of-completion method in accounting for its other 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.

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

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

Notes forming part of Condensed Interim Financial Statements

b) Income taxes

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

Management evaluates if the deferred tax assets will be realised in future considering the historical taxable income, scheduled reversals of deferred tax liabilities, projected future taxable income and tax-planning strategies. While the Management believes that the Company will realise the deferred tax assets, the amount of deferred tax asset realisable, could be reduced in the near term if estimates of future taxable income during the carry forward period are reduced.

c) Business combination

Business combinations are accounted for using Ind AS 103, Business Combinations, which requires the the acquirer to recognise the identifiable intangible assets and contingent consideration at fair value. Estimates are required to be made in determining the value of contingent consideration, value of option arrangements and intangible assets. These valuations are conducted by external valuation experts. These measurements are based on information available at the acquisition date and are based on expectations and assumptions that have been deemed reasonable by the Management.

d) 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.

e) Leases

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

3.3 Summary of significant accounting policies

a) Current versus non-current classification

All assets and liabilities have been classified as current or non-current as per the Company's operating cycle and other criteria set out in the Schedule III of the Companies Act, 2013 (the "Act"). Operating cycle is the time between the acquisition of resources / assets for processing and their realisation in cash and cash equivalents. Based on the nature of products/ services and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months.

b) Property, Plant and Equipment

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

Notes forming part of Condensed Interim Financial Statements

c) Intangible assets

Intangible assets including software licenses of enduring nature and contractual rights acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business combination is their fair value at the date of acquisition. 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.

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:

osciui lives
25 years
3 years
3 years
5 years
5 years
20 years
10 years
5 years
5 years

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

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

Depreciation methods, useful lives and residual values are reviewed periodically

e) Borrowing costs

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

Notes forming part of Condensed Interim Financial Statements

f) Leases

The Company assesses at the inception of contract whether a contract is or contains a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration

To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether: (i) the contract involves the use of an identified asset
(ii) the Company has substantially all of the economic benefits from use of the asset through the period of the lease and

(iii) the Company has the right to direct the use of the asset

Where the Company is a lessee

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

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

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

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

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

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

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

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

Company as a lessor

At the inception of the lease, the Company classifies each of its leases as either an operating lease or a finance lease. Whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee, the contract is classified as a finance lease. All other leases are classified as operating leases. The Company recognises lease payments received under operating leases as income over the lease term on a straight line basis.

Notes forming part of Condensed Interim Financial Statements

g) Impairment of Non-financial assets

The Company asesses at each reporting date, if there is any indication of impairment based on internal/ external factors. If any indications exist, the Company estimates the asset's recoverable amount unless the asset does not generate cash flows that are largely independent of those from other assets.

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

h) Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

Initial recognition and measurement

The Company recognizes financial assets and financial liabilities when it becomes a party to the contractual provisions of the instrument. All financial assets and liabilities are recognized at fair value on initial recognition, except for trade receivables which are initially measured at transaction price. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities, which are not at fair value through profit or loss, are added to the fair value on initial recognition.

The classification of financial assets at initial recognition depends on the financial asset's contractual cash flow characteristics and the Company's business model for managing them. The Company's business model refers to how it manages it's financial assets to generate cash flows. The business model determines whether the cash flows will result from collecting contractual cash flows, selling the financial assets, or both.

Non-derivative financial instruments Subsequent measurement

Financial assets

Financial assets at amortized cost

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 asset at amortized cost or at 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.

Financial liabilities

Financial liabilities at amortised cost

Financial liabilities are subsequently carried at amortized cost using the effective interest method, except for contingent consideration recognized in a business combination which is subsequently measured at fair value through profit or loss. For trade and other payables maturing within one year from the Balance Sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.

Financial liabilities at fair value through profit or loss (FVTPL)

Financial liabilities indude financial liabilities held for trading and financial liabilities designated upon initial recognition at fair value through profit or loss if the recognition criteria as per Ind AS 109 - "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 FVTPL.

Investments in subsidiaries, associates and joint ventures

Investment in subsidiaries, associates and joint ventures are carried at cost.

Notes forming part of Condensed Interim Financial Statements

Derivative financial instruments

The Company uses derivatives for economic hedging purposes. At the inception of hedging relationship, the Company documents the hedging relationship between the hedging instrument and hedged item including whether the changes in cash flows of the hedging instruments are expected to offset the changes in cash flows of the hedged items. The Company documents its objective and strategy for undertaking its hedging transactions.

Derivatives are initially recognised at fair value on the date a derivative contract is entered and are subsequently remeasured at fair value at each reporting date.

For cash flow hedges that qualify for hedge accounting, the effective portion of fair value of derivatives are recognised in cash flow hedging reserve within equity.

Gains or losses relating to the ineffective portion is immediately recognised in profit or loss.

Amounts accumulated in equity are reclassified to profit or loss in the period when the hedged item affects profit and loss or hedged future cash flows are no longer expected to occur.

Derivatives which do not qualify for hedge accounting are accounted as fair value through profit or loss.

Derecognition

The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers the financial asset and the transfer qualifies for derecognition under Ind AS 109. A financial liability (or a part of a financial liability) is derecognized from the Company's Balance Sheet when the obligation specified in the contract is discharged or cancelled or expires. 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, except in case of equity instruments classified as FVOCI, where such cumulative gain or loss is not recycled to statement of profit and loss.

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

Financial quarantee contracts

Financial guarantee contracts issued by the Company are those contracts that require a payment to be made to reimburse the holder for a loss it incurrs because the specified debtor fails to make a payment when due in accordance with the terms of a debt instrument. Financial guarantee contracts are recognised initially as a liability at fair value, adjusted for transaction costs that are directly attributable to the issuance of the guarantee. Subsequently, the liability is measured at the higher of the amount of loss allowance determined as per impairment requirements of Ind AS 109 and the amount recognised less cumulative amortisation.

Fair value of financial instruments

In determining the fair value of its financial instruments, the Company uses a variety of methods and assumptions that are based on market conditions and risks existing at each reporting date. The methods used to determine fair value include discounted cash flow analysis, available quoted market prices, dealer quotes

For equity instruments of unlisted companies, in limited circumstances, insufficient more recent information is available to measure fair value, or if there are a wide range of possible fair value measurements and cost represents the best estimate of fair value within that range. The Company recognises such equity instruments at cost, which is considered as appropriate estimate of fair value.

All methods of assessing fair value result in general approximation of value, and such value may never actually be realized. Refer to the table on financial instruments by category below for the disclosure on carrying value and fair value of financial assets and liabilities. For financial assets and liabilities maturing within one year from the Balance Sheet date and which are not carried at fair value, the carrying amounts approximate fair value due to the short maturity of these instruments.

Impairment of 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.

Notes forming part of Condensed Interim Financial Statements

i) Revenue recognition

Revenues from customer contracts are considered for recognition and measurement when the contract has been approved by the parties to the contract, the parties to the contract are committed to perform their respective obligations under the contract, and the contract is legally enforceable. Revenue is recognized upon transfer of control of promised products or services ("performance obligations") to customers in an amount that reflects the consideration the Company has received or expects to receive in exchange for these products or services ("transaction price"). When there is uncertainty as to collectability, revenue recognition is postponed until such uncertainty is resolved. The Company assesses the services promised in a contract and identifies distinct performance obligations in the contract. The Company allocates the transaction price to each distinct performance obligation based on the relative standalone selling price. The price that is regularly charged for an item when sold separately is the best evidence of its standalone selling price. In the absence of such evidence, the primary method used to estimate standalone selling price is the expected cost plus a margin, under which the Company estimates the cost of satisfying the performance obligation and then adds an appropriate margin based on similar services. The Company's contracts may include variable consideration including rebates, volume discounts and penalties. The Company includes variable consideration as part of transaction price when there is a basis to reasonably estimate the amount of the variable consideration and when it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved.

Income from software services and products

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

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.

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

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

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

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

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

Interest

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

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.

Contract balances

Contract assets

A contract asset is the right to consideration in exchange for services or products tranferred to the customer. If the Company provides services or transfers products to the customer before the customer pays consideration or before the payment is due, a contract asset is recognised for the earned consideration that is conditional.

Contract liabilities

A contract liability is the obligation to provide services or transfer products to a customer for which the Company has received consideration (or an amount of consideration is due) from the total consideration. If the Company receives the consideration from the customer before the Company provides services or transfers products to the customer, a contract liability is recognised for the received consideration that is conditional.

Notes forming part of Condensed Interim Financial Statements

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.

k) Foreign currency translation

Foreign currency transactions and balances

Initial recognition

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

Conversion

Exchange differences

Translation of foreign operations

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

I) Retirement and other employee benefits

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 eligible salary of the entitled employees as per the scheme. The contributions to the provident fund are charged to the statement of profit and loss for the year when the contributions are due. The Company has no obligation, other than the contribution payable to the provident fund.

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

Superannuation

Leave encashment

The expected cost of accumulating leave encashment is determined by actuarial valuation performed by an independent actuary at each Balance Sheet date using projected unit credit method on the additional amount expected to be paid / availed as a result of the unused entitlement that has accumulated at the Balance Sheet date. Expense on nonaccumulating leave encashment is recognized in the period in which the absences occur.

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.

Notes forming part of Condensed Interim Financial Statements

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

n) 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 in consolidated financial statements which are presented together with the standalone financial statements.

o) Earnings per share (EPS)

p) Provisions

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

q) 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.

Notes forming part of Condensed Interim Financial Statements

r) 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.

s) Share based payments

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).

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.

At the end of each reporting period, the entity revises its estimates of the number of options that are expected to vest based on the non-market vesting and service conditions. It recognises the impact of the revisions to the original estimates, if any, in profit or loss with a corresponding adjustment to equity.

The expense or credit recognized in the statement of profit and loss for the year represents the movement in cumulative expense recognized as at the beginning and end of that year and is recognized in employee benefits expense with a corresponding increase in stock options outstanding reserve in equity. 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.

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

t) Equity

u) Dividend

Final dividend on shares are recorded as a liability on the date of approval by the shareholders and interim dividends are recorded as a liability on the date of declaration by the Company's Board of Directors.

v) Business Combination

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

Acquisition-related costs are expensed as incurred.

The excess of the:

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

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

w) Goodwill / Gain on bargain purchase

Goodwill represents the cost of business acquisition in excess of the Company'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. Subsequent to initial recognition, Goodwill is measured at cost less accumulated impairment losses.

Notes forming part of Condensed Interim Financial Statements

4.1 Property, plant and equipment

Office Leasehold Vehicles Land- Buildings* Computers Plant and Furniture and Freehold fixtures equipments equipment improvements	Total

Gross block (at cost)
As at April 1, 2022 58.00 557.84 7.27 206.92 2,389.08 3.273.91 1,389.40 20.79	7.903.21
376.38 Additions 4.66 247.42 146.71	775.17
Disposals 35.09 1.76 1.41 $\blacksquare$	38.26
62.66 703.14 7.27 206.92 2,389.08 3,615.20 1,635.06 2079 As at September 30, 2022	8,640.12
Accumulated depreciation
As at April 1, 2022 1.253.87 2.156.39 50.81 1,180,30 20.79 501.49 5.95 $\blacksquare$	5.169.60
Charge for the period 48.32 309.40 1.52 39.14 21.67 0.47	420.52
1.41 Disposals 35.00 1.76	38.17
52.33 6.42 1,302.19 2,430.79 1,217.68 20.79 521.75 As at September 30, 2022 $\blacksquare$	5,551.95
Net block
1,086.89 206.92 1,184.41 10.33 417.38 181.39 0.85 As at September 30, 2022	3,088.17
4.2 Right of use assets
	(In ₹ Million)
Office premises Leasehold land	Total
Gross block (at cost)
As at April 1, 2022 808.27 37.50	845.77
Additions 869.98 94.47	964 45
As at September 30, 2022 1,678.25 131.97	1.810.22
Accumulated depreciation
As at April 1, 2022 172.38 1.76	174.14
Charge for the period 113.47 0.69	114.16
As at September 30, 2022 285.85 2.45	288.30
Net block
129.52 As at September 30, 2022 1,392.40	1,521.92

* Note: Building includes those constructed on leasehold land:
a) Gross block as on September 30, 2022 ₹ 1,455.94 million (Corresponding period ₹ 1,455.94 million / Previous year ₹ 1,455.94 million)

b) Depreciation charge for the year ₹ 29.62 million (Corresponding period ₹ 29.61 million / Previous year ₹ 59,07 million)

c) Accumulated depreciation as on September 30, 2022 ₹ 646.76 million (Corresponding period ₹ 587.68 million / Previous year ₹ 617.14 million)

d) Net block value as on September 30, 2022 ₹ 809.18 million (Corresponding period ₹ 868.26 million / Previous year ₹ 838.80 million)

Notes forming part of Condensed Interim Financial Statements

4.1 Property, plant and equipment

									(In ₹ Million)
	Land- Freehold		Buildings Computers	Office equipments	Plant and equipment	Leasehold improvements	Furniture and fixtures	Vehicles	Total
Gross block (at cost)
As at April 1, 2021	206.92	2,387.73	2,331.29	57.84	1,407.04	20.79	527.32	7.24	6,946.17
Additions		1.34	511.51	3.19	57.10		25.18	$\blacksquare$	598.32
Disposals	$\blacksquare$	$\overline{\phantom{a}}$	0.58	$\blacksquare$	68.21		4.94	$\blacksquare$	73.73
As at September 30, 2021	206.92	2,389.07	2,842.22	61.03	1,395.93	20.79	547.56	7.24	7,470.76
Accumulated depreciation
As at April 1, 2021		1,157.49	1,732.90	51.75	1,215.65	20.19	492 97	4.98	4,675.93
Charge for the period		48.31	181.35	1.39	23.67	0.40	1143	0.47	267.02
Disposals		٠	0.42	$\blacksquare$	68.05		4.94	$\blacksquare$	73.41
As at September 30, 2021	$\blacksquare$	1,205.80	1,913.83	53.14	1,171.27	20.59	499.46	5.45	4,869.54
Net block
As at September 30, 2021	206.92	1,183.27	928.39	7.89	224.66	0.20	48.10	1.79	2,601.22
4.2 Right of use assets
									(In ₹ Million)
							Office premises	Leasehold land	Total

	.
Gross block (at cost)
As at April 1, 2021	443 17	37.50	480.67
Additions	302.65	٠	302.65
Disposals	110.28	$\blacksquare$	110.28
As at September 30, 2021	635.54	37.50	673.04
Accumulated depreciation
As at April 1, 2021	164.87	1.18	166.05
Charge for the period	60.20	0.29	60.49
Disposals	110.28	٠	110.28
As at September 30, 2021	114.79	1.47	116.26
Net block
As at September 30, 2021	520.75	36.03	556.78

4.1 Property, plant and equipment

									$(ln ₹$ Million)
	Land- Freehold	Buildings	Computers	Office equipments	Plant and equipment	Leasehold improvements	Furniture and fixtures	Vehicles	Total
Gross block (at cost)
As at April 1, 2021	206.92	2.387.73	2.331.29	57.84	.407.04	20.79	527.32	7.24	6.946.17
Additions	$\overline{\phantom{0}}$	1.35	952.88	3.95	72.38	$\blacksquare$	61.66	0.03	1.092.25
Additions through business combinatio	$\overline{\phantom{a}}$	۰	1.70	0.08	0.19	$\overline{\phantom{a}}$		$\overline{\phantom{0}}$	1.97
Disposals	$\overline{\phantom{a}}$	$\overline{\phantom{a}}$	11.96	3.87	90.21	$\blacksquare$	31.14	$\sim$	137.18
As at March 31, 2022	206.92	2.389.08	3.273.91	58.00	1.389.40	20.79	557.84	7.27	7,903.21
Accumulated depreciation
As at April 1, 2021	$\sim$	1.157.49	1.732.90	51.75	1,215,65	20.19	492.97	4.98	4.675.93
Charge for the year	$\blacksquare$	96.38	435.14	2.93	54.70	0.60	39.25	0.97	629.97
Disposals		۰	11.65	3.87	90.05	٠	30.73	$\blacksquare$	136 30
As at March 31, 2022	۰.	1,253.87	2,156.39	50.81	1,180.30	20.79	501.49	5.95	5,169.60
Net block
As at March 31, 2022	206.92	1,135,21	1,117,52	7.19	209.10	٠	56.35	1.32	2,733.61

Notes forming part of Condensed Interim Financial Statements

4.2 Right of use assets

			(In ₹ Million)
	Office premises	Leasehold land	Total
Gross block (at cost)
As at April 1, 2021	443.17	37.50	480.67
Additions	495.78	۰.	495.78
Disposals	130.68		130.68
As at March 31, 2022	808.27	37.50	845.77
Accumulated depreciation
As at April 1, 2021	164.87	1.18	166.05
Charge for the year	127.21	0.58	127.79
Disposals	119.70		119.70
As at March 31, 2022	172.38	1.76	174.14
Net block
As at March 31, 2022	635.89	35.74	671.63

4.3 Goodwill

	As at	As at	As at
	September 30, 2022	September 30, 2021	March 31, 2022
	In $\bar{\tau}$ Million	In ₹ Million	In ₹ Million
Balance at beginning of year
Addition on purchase price allocation of	54 39
business combination (refer note 34)
Balance at end of period/ year	54.39

4.4 Other intangible assets

				(In ₹ Million)
	Software	Acquired contractual	Provisional Intangible	Total
		rights	Assets
Gross block
As at April 1, 2022	987.10	261.74	626.90	1,875.74
Additions	79.87			79.87
Reclassification on purchase price allocation		52.35	(106.74)	(54.39)
of business combination (refer note 34)
Disposals	390.70			390.70
As at September 30, 2022	676.27	314.09	520.16	1,510.52
Accumulated amortization
As at April 1, 2022	821.98	261 74	11.29	1,095.01
Charge for the period	43.46	8.52	30.11	82.09
Reclassification on purchase price allocation		6.19	(6.19)
of business combination
Disposals	390.70			390.70
As at September 30, 2022	474.74	276 45	35.21	786.40
Net block
As at September 30, 2022	201.53	37.64	484.95	724.12

			(In ₹ Million)
	Software	Acquired contractual	Total
		rights
Gross block
As at April 1, 2021	925 11	261.74	1,186.85
Additions	37.61	$\blacksquare$	37 61
As at September 30, 2021	962.72	261.74	1,224.46
Accumulated amortization
As at April 1, 2021	753.46	261.74	1,015.20
Charge for the period	32.99	$\blacksquare$	32.99
As at September 30, 2021	786.45	261.74	1,048.19
Net block
As at September 30, 2021	176 27		176.27

				(In ₹ Million)
	Software	Acquired contractual	Provisional Intangible	Total
		rights	Assets
Gross block
As at April 1, 2021	925.11	261.74	$\overline{\phantom{0}}$	1,186.85
Additions	61.99	-		61.99
Additions on business combination	$\overline{\phantom{0}}$		626,90	626.90
As at March 31, 2022	987.10	261.74	626.90	1,875.74
Accumulated amortization
As at April 1, 2021	753.46	261.74	н.	1,015,20
Charge for the year	68.52		11.29	79.81
As at March 31, 2022	821.98	261.74	11.29	1,095.01
Net block
As at March 31, 2022	165.12		615 61	780 73

4.5 Depreciation and amortization expense

.
					(In ₹ Million)
	For the quarter ended		For the Half year ended		For the Year ended
	September 30, 2022	September 30, 2021	September 30, 2022	September 30, 2021	March 31, 2022
On Property, plant and equipment	220.16	150.19	420.52	267.02	629.97
On Right of use assets	69.73	31.31	114.16	60.49	127.79
On Other intangible assets	42.35	16.29	82.09	32.99	79.81
	332.24	197.79	616.77	360.50	837.57

Non-current financial assets : Investments

	As at September 30, 2022 In ₹ Million	As at September 30, 2021 In ₹ Million	As at March 31, 2022 In ₹ Million
Investments carried at cost Unquoted investments Investments in equity instruments - In wholly owned subsidiary companies (Refer note 31)
Persistent Systems, Inc. 702 million (Corresponding period: 402 million, Previous year: 482 million) shares of USD 0.10 each, fully paid up	4,729.74	2,478.01	3,048.26
Persistent Systems Pte Ltd. 0.50 million (Corresponding period/ Previous year: 0.50 million) shares of SGD 1 each, fully paid up	15.50	15.50	15.50
Persistent Systems France SAS 1.50 million (Corresponding period/ Previous year: 1.50 million) shares of EUR 1 each, fully paid up	97.47	97.47	97.47
Persistent Systems Malaysia Sdn. Bhd. 5.45 million (Corresponding period/ Previous year: 5.45 million) shares of MYR 1 each, fully paid up	102.25	102.25	102.25
Persistent Systems Germany GmbH 11.65 million (Corresponding period/ Previous year: 11.65 million) shares of EUR 1 each, fully paid up	1,265,91	1,265.91	1,265.91
CAPIOT Software Private Limited 0.19 million (Corresponding period 0.19 / Previous year: 0.19) shares of Rs. 10 each, fully paid up	483.71	382 31	483.71
Media Agility India Private Limited 3.21 million (Corresponding period Nil / Previous year: Nil ) shares of Rs. 10 each, fully paid up.	971.45
Total investments carried at cost (A)	7,666 03	4,341.45	5,013.10
Investments carried at amortised cost Quoted investments
In bonds [Market value ₹ 2,827.66 million (Corresponding period: ₹ 3,082.55 million /Previous year ₹ 2,863 32 million)]	2.830.72	2.898.99	2.801.81
Add: Interest accrued on bonds Total investments carried at amortised cost (B)	114 35 2.945.07	123.49 3,022.48	77.48 2.879.29
Designated as fair value through profit and loss
Unquoted investments
- Investments in mutual funds Fair value of long term mutual funds (Refer Note 5 (a))	844 85	796.06	836.42
	844 85	796.06	836.42
- Others*
Altizon Systems Private Limited 3,766 equity shares (Corresponding period/ Previous year: 3,766 equity shares) of ₹ 10 each, fully paid up	6.00	6.00	6.00
	6.00	6.00	6.00
Total investments carried at fair value (C)	850.85	802 06	842.42
Total investments $(A) + (B) + (C)$	11,461.95	8,165.99	8,734.81
Aggregate provision for diminution in value of investments
Aggregate amount of quoted investments Aggregate amount of unquoted investments	2.945.07 8,516.88	3.022.48 5,143.51	2.879.29 5,855.52

* 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 ot

Notes forming part of Condensed Interim Financial Statements

5 (a) Details of fair value of investment in long term mutual funds (unquoted)

As at	As at	As at
September 30, 2022	September 30, 2021	March 31, 2022
In ₹ Million	In ₹ Million	In ₹ Million
475.35	437.05	471.15
369.50	359.01	365.27
844 85	796.06	836 42

6. Non-current financial assets : Loans

	As at	As at	As at
	September 30, 2022	September 30, 2021	March 31, 2022
	In ₹ Million	In ₹ Million	In ₹ Million
Carried at amortised cost
Loan to related parties
- Persistent Systems Germany GmbH	396.91		420.67
Add: Interest accrued but not due on loan	6.92		1.01
	403.83		421.68
Other loans and advances
Unsecured, considered good
Loan to ESOP trust	3,350,00	1,880,00	3,522,00
	3,350.00	1,880.00	3,522.00
Unsecured, credit impaired
Inter corporate deposit	0.58	0.58	0.58
Less: Impairment	(0.58)	(0.58)	(0.58)
	٠
	3.753.83	1.880.00	3.943.68

7. Other non-current financial assets

	As at	As at	As at
	September 30, 2022	September 30, 2021	March 31, 2022
	In ₹ Million	In ₹ Million	In ₹ Million
Considered good
Carried at amortised cost
Deposits with Bank (refer note 13)*	28.89	41.26	3.19
Add: Interest accrued but not due on deposits with Bank (refer note 13)	0.30	0.09	0.17
	29.19	41.35	3.36
Deposit with financial institutions	300.00		100.00
Add: Interest accrued but not due on deposit with financial institutions	6.02		0.41
	306.02	٠.	100.41
Security deposits	235 75	107.70	122 91
Considered good (A)	570.96	149.05	226.68
Credit impaired
Deposit with financial institutions	430.00	430.00	430.00
Add: Interest accrued but not due on deposit with financial institutions	0.98	0.98	0.98
Less: Credit impaired	(430.98)	(430.98)	(430.98)
Credit impaired (B)
Investment in Persistent Systems Inc. (shares pending allotment)		2,969.60
Total (A+B)	570.96	3,118.65	226 68

* Out of the balance, fixed deposits of ₹ 28,34 million (Corresponding period : ₹ 2,09 million/ Previous year : ₹ 3,03 million) have been earmarked against
credit facilities and bank guarantees availed by the Company

8. Deferred tax assets (net)

	As at	As at	As at
	September 30, 2022	September 30, 2021	March 31, 2022
	In ₹ Million	In ₹ Million	In ₹ Million
Deferred tax liabilities
Differences in book values and tax base values of block of property, plant and equipment and other intangible assets	73.21	118.41	87.05
Capital gains (net)	33.91	37.93	51.11
Cash flow hedges			14.06
	107.12	156.34	152 22
Deferred tax assets
Provision for leave encashment	133.76	101.60	125 68
Provision for long service awards	91.53	68.85	67.97
Allowance for expected credit loss	23.93	27.65	21.19
Tax credit	56.59	56.61	56.61
Right of use asset and lease liability	37.07	29.18	30.21
Cash flow hedges	102.43	٠
Others	117.28	94.92	117.28
	562.59	378.81	418.94
Deferred tax assets (net)	455.47	222.47	266.72

Other non-current assets

	As at	As at	As at
	September 30, 2022	September 30, 2021	March 31, 2022
	In $\bar{\tau}$ Million	In ₹ Million	In ₹ Million
Capital advances (unsecured, considered good)	674.20	1.023.36	136.52
Prepayments	281.67	98.06	124.91
Balances with government authorities (refer note 32 (a))	296.55	296.55	296.55
	1,252.42	1.417.97	557.98

10. Current financial assets : Investments

	As at	As at	As at
	September 30, 2022	September 30, 2021
			March 31, 2022
	In ₹ Million	In $\bar{\tau}$ Million	In ₹ Million
Designated as fair value through profit and loss
- Unquoted investments
Investments in mutual funds
Fair value of current mutual funds (refer note '10(a)' below)	2.086 50	3.144.87	4.346.91

Total carrying amount of investments	2,086.50	3,144 87	4,346.91

Aggregate amount of quoted investments
Aggregate amount of unguoted investments	2,086.50	3,144.87	4,346.91

10(a) Details of fair value of current investment in mutual funds (unquoted)

	As at	As at	As at
	September 30, 2022	September 30, 2021	March 31, 2022
	In ₹ Million	In ₹ Million	In ₹ Million
Aditya Bina Sun Life Mutual Fund	795.61	866.55	883.65
Axis Mutual Fund	654.78	346.21	672.70
UTI Mutual Fund	431.08	144.65	337.68
IDEC Mutual Fund	194 59	345 98	457.54
DSP Mutual Fund	10.44	50.22	443.20
HDFC Mutual Fund		119.99
L&T Mutual Fund	$\blacksquare$	40.00
Kotak Mutual Fund		453.70	521.63
ICICI Prudential Mutual Fund		276.40	399.94
SBI Mutual Fund		191.27	120.01
Nippon India Mutual Fund (formerly known as Reliance Mutual Fund)	$\blacksquare$	50.07	472.88
Sundaram mutual fund		57.98	37.68
Tata Mutual Fund		201.85
	2.086.50	3.144.87	4.346.91

Notes forming part of Condensed Interim Financial Statements

11 Trade receivables

	As at	As at	As at
	September 30, 2022	September 30, 2021	March 31, 2022
	In ₹ Million	In ₹ Million	In ₹ Million
Unsecured, considered good	7.061.01	3.383.92	4,426.84
Unsecured, credit impaired	95.08	109.87	84.21
	7.156.09	3.493.79	4,511.05
Less: Allowance for expected credit loss	(95.08)	(109.87)	(84.21)
	7.061.01	3,383.92	4.426.84

	7.061.01	3,383.92	4,426.84

12. Cash and cash equivalents

	As at	As at	As at
	September 30, 2022	September 30, 2021	March 31, 2022
	In ₹ Million	In ₹ Million	In ₹ Million
Cash and cash equivalents as presented in cash flow statement
Cash on hand	0.10	0.07	0.09
Balances with banks
On current accounts#	729.74	271.62	302.74
On saving accounts	31.74	8.46	1.64
On exchange earner's foreign currency accounts	456.69	358.60	259.20
	1.218.27	638.75	563 67

Of the cash and cash equivalent balance as at September 30, 2022, the Company can utilise ₹ 37.42 million (Corresponding period : ₹ 170.21 million, Previous year: ₹ 35.75
million) only towards certain predefined activi

13. Bank balances other than cash and cash equivalents

	As at	As at	As at
	September 30, 2022	September 30, 2021	March 31, 2022
	In ₹ Million	In ₹ Million	In ₹ Million
Deposits with banks*	4.316.24	6.207.97	5,858.66
Add: Interest accrued but not due on deposits with banks	70.91	138.87	179.78
Deposits with banks (carried at amortised cost)	4,387 15	6,346.84	6,038.44
Less: Deposit with maturity more than twelve months from the balance sheet date disclosed under non-current financial assets (refer note 7)	(28.89)	(41.26)	(3.19)
Less: Interest accrued but not due on non-current deposits with banks (refer note 7)	(0.30)	(0.09)	(0.17)
	4,357.96	6,305.49	6,035.08
Balances with banks on unpaid dividend accounts**	2.83	2.89	2.94
	4.360.79	6,308.38	6.038.02

* Out of the balance, fixed deposits of ₹ 624.57 million (Corresponding period: ₹ 644.49 million/ Previous year : ₹ 644.36 million) have been earmarked against credit facilities
and bank guarantees availed by the Company

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

Current financial assets : Loans

	As at	As at	As at
	September 30, 2022	September 30, 2021	March 31, 2022
	In ₹ Million	In ₹ Million	In ₹ Million
Carried at amortised cost
Loan to related parties
Unsecured, credit impaired
- Klisma e-Services Private Limited #	$\sim$
	$\overline{a}$
Less: Write off / impairment

Klisma e-Services Private Limited ('Klisma'), an Associate Company of the Company has been dissolved w.e.f. August 10, 2021 vide dissolution order passed by the Hon'ble
National Company Law Tribunal, Mumbai Bench, Conse

15. Other current financial assets

	As at	As at	As at
	September 30, 2022	September 30, 2021	March 31, 2022
	In ₹ Million	In ₹ Million	In ₹ Million
Derivative instruments at fair value through OCI
Cash flow hedges
Foreign exchange forward contracts		139.04	84.59
Carried at amortised cost
Advances to related parties (Unsecured, considered good)
Persistent Systems, Inc.	5.35		69.15
Persistent Systems France SAS	0.68	0.50	5.49
Persistent Telecom Solutions Inc.	0.14	0.12	0.13
Persistent Systems Malaysia Sdn, Bhd.	0.07	0.07	0.07
Persistent Systems Lanka (Private) Limited	0.20	0.15	0.72
Aepona Limited	6.28	3.86	1.16
Aepona Group Limited	0.04	0.04	0.08
PARX Consulting GmbH	0.06	0.06	0.06
Software Corporation LLC.			0.25
Youperience Limited	0.04	0.04	0.04
Persistent Systems Mexico, S.A. de C.V.	0.82	0.08	10.01
Youperience GmbH	0.04	0.04	0.04
Persistent Systems Pte, Ltd.	0.39	0.10	0.29
Persistent Systems Germany GmbH	0.50	0.01	1.48
Persistent Systems Switzerland AG (Formerly known as PARX Werk AG)	0.09	0.09	1.88
Persistent Systems srae Ltd.			0.14
	14.70	5.16	90.99
Unbilled revenue	3,417.42	2,595.72	3.533.05
Security deposits	0.10	6.00	0.10
Other receivables (Unsecured, considered good)	16.10	16.09	16.10
	3,448.32	2,762.01	3,724.83

16. Other current assets

September 30, 2022 In ₹ Million	September 30, 2021	March 31, 2022

	In ₹ Million	In ₹ Million

365.38	98.24	277.27
797.65	481.45	498.68
98.95	1.82	42.19

25.39	28.40	19.67
704.33	925.44	533.45
729.72	953.84	553.12
1,991.70	1,535.35	1,371.26

Notes forming part of Condensed Interim Financial Statements

17. Share Capital

	As at	As at	As at
	September 30, 2022 September 30, 2021		March 31, 2022
	In ₹ Million	In ₹ Million	In ₹ Million
Authorized shares (No. in million)
200 (Corresponding period/ Previous year: 200) equity shares of ₹10
each	2.000.00	2.000.00	2,000.00
	2,000.00	2,000.00	2,000.00
ssued, subscribed and fully paid up shares (No in million)
76.43 (Corresponding period/ Previous year: 76.43) equity shares of ₹10 each	764.25	764.25	764.25
ssued, subscribed and fully paid up share capital	764.25	764.25	764.25

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

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

					(In Million)


No of Shares	Amount ₹	No of Shares	Amount ₹	No of Shares	Amount ₹
76.43		76.43	764.25	76.43	764.25
			٠
76.43	764 25	76.43	764.25	76.43	764 25
		As at September 30, 2022 764.25		As at September 30, 2021	As at March 31, 2022

b) Terms / rights attached to equity shares

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

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 t

c) Aggregate number of shares bought back during the period of five years immediately preceding the reporting date

	For the period of five years ended	For the period of For the period of five years ended five years ended
	September 30, 2022 September 30, 2021 No in Million	No in Million	March 31, 2022 No in Million
Equity shares bought back	3.575	3.575	3.575

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

Name of the shareholder*	As at		As at		As at
	September 30, 2022		September 30, 2021		March 31, 2022
	No. in million	% Holdina	No. in million	% Holdina	No. in million	% Holdina
Dr. Anand Deshpande and Mrs. Sonali Anand Deshpande	22.97	30.06	22.96	30.04	22.97	30.06
Schemes of Kotak Equity Fund	3.82	5.00	3.35	4.38	3.69	4.82
Schemes of HDFC Mutual Fund	2.47	3.23	4.42	5.78	3.45	4.51

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

Notes forming part of Condensed Interim Financial Statements

18. Non-current financial liabilities : Borrowings

	As at	As at	As at
	September 30, 2022	September 30, 2021	March 31, 2022
	In ₹ Million	In ₹ Million	In ₹ Million
Unsecured borrowings carried at amortised cost
Term loans
Indian rupee loan from others	3.69	5.54	5.55
Interest accrued but not due on term loans			0.08
	3.69	5.54	5.63
Less: Current maturity of long-term borrowings	(1, 85)	(1, 85)	(1, 85)
Less: Current maturity of interest accrued but not due on term loan			(0.08)
	(1.85)	(1.85)	(1.93)
	1.9A	3.60	3. ZO

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

Loan amounting to ₹ 3,69 million (Corresponding period ₹ 5,54 million / Previous year ₹ 5,55 million) with Interest payable @ 3% per annum
repayable in ten equal annual installments over a period of ten years commencing f

19. Lease liabilities

Movement of lease liabilities

	As at	As at	As at
	September 30, 2022	September 30, 2021	March 31, 2022
	In ₹ Million	In ₹ Million	In ₹ Million
Lease liabilities	1.541.80	63170	758.26
Less: Current portion of lease liabilities	(422.82)	(112.83)	(146.51)
	1.118.98	518.87	611.75

For the half year ended For the year ended September 30, 2022 September 30, 2021 March 31, 2022 In ₹ Million In ₹ Million In ₹ Million Opening balance 758.26 378.54 378.54 Additions
Deletions 495.78
(10.98)
68.59 302.65 Add: Interest recognised during the period / year 47.21 35.64 $(133.65)$
1,541.80 $\frac{(85.13)}{631.70}$ $\frac{(173.67)}{758.26}$ Less: Payments made during the period / year Closing balance

Notes forming part of Condensed Interim Financial Statements

20. Non current liabilities : Provisions

	As at	As at	As at
	September 30, 2022	September 30, 2021	March 31, 2022
	In ₹ Million	In ₹ Million	In ₹ Million
Provision for employee benefits
- Long service awards	329.11	252.59	245.54
	329.11	252.59	245.54
21 Trade payables

	As at September 30, 2022 In ₹ Million	As at September 30, 2021 In ₹ Million	As at March 31, 2022 In ₹ Million
Trade pavables for goods and services*
total outstanding dues of micro enterprises and small enterprises	17.21	45.55	10.30
-total outstanding dues of creditors other than micro enterprises and small enterprises	1.069.20	856.59	844 68
	1.086.41	90214	854 QR

* Disclosure of payable to vendors as defined under the "Micro, Small and Medium Enterprise Development Act, 2006" is based on the information available with the TUISCOISURE OF PAYADIE TO Vendors as defined under the wird o, Small and wedium Enterprise Development Act, 2000 is Dased on the information available with the SC company regarding the status of registration of such vendor

∸

22. Other current financial liabilities

	As at	As at	As at
	September 30, 2022	September 30, 2021	March 31, 2022
	In ₹ Million	In ₹ Million	In ₹ Million
Capital creditors	168.91	28.72	204.49
Accrued employee liabilities	84.65	119.88	119.21
Unpaid dividend *	2.83	2.89	2.94
Other liabilities	3 1 5	8.41	8.41
Payable to selling shareholders	4793		4793
Derivative instruments at fair value through OCI
Cash flow hedges
Foreign exchange forward contracts	512.24
Advance from related parties (Unsecured, considered good)
Persistent Systems, Inc.	۰	5.08
Persistent Systems Israel Ltd.	1.14	1.14
	1.14	6.22	$\blacksquare$
	820 85	166.12	382.98

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

23. Other current liabilities

	As at	As at	As at
	September 30, 2022	September 30, 2021	March 31, 2022
	In ₹ Million	In ₹ Million	In ₹ Million
Unearned revenue	298.77	231.77	258.31
Advance from customers	1.078.67	1.170.12	78698
Other payables
- Statutory liabilities	663.21	382 58	413 55
- Other liabilities*	63.07	177.22	50 20
	2.103.72	1,961.69	1.509.04

*Includes balance of ₹37.30 million (Corresponding period : ₹170.21 million, Previous year: ₹35.64 million) to be utilised against certain predefined activities specified in the agreement

24 Current liabilities : Provisions

	As at September 30, 2022 In ₹ Million	As at September 30, 2021 In ₹ Million	As at March 31, 2022 In ₹ Million
Provision for employee benefits
- Leave encashment	531.48	403.68	499.37
- Long service awards	34.57	20.97	24.54
- Other employee benefits	1.260.72	743.37	1,745.82
	1,826.77	1,168.02	2,269.73

25. Revenue from operations (net)

	For the quarter ended		For the half year ended	For the year ended
	September 30, 2022	September 30, 2021	September 30, 2022	September 30, 2021	March 31, 2022
	In ₹ Million	In ₹ Million	In ₹ Million	In ₹ Million	In ₹ Million
Software services	12,106.91	8.389.11	23,028.07	15,954.07	35,406.71
Software licenses	140.75	80.74	240.35	164.12	348.09
	12.247.66	8.469.85	23.268.42	16.118.19	35.754.80

Other income

	For the quarter ended		For the half year ended		For the year ended
	September 30, 2022	September 30, 2021	September 30, 2022	September 30, 2021	March 31, 2022
	In ₹ Million	In ₹ Million	In ₹ Million	In ₹ Million	In ₹ Million
Interest income
On deposits carried at amortised cost	56.44	76.93	123.58	148.64	311.08
On Loan given to ESOP Trust	50.01		100.69		91.89
On others	51.08	56.61	100.48	102.59	190.61
Dividend income from investments*					53.16
Other non-operating income
Foreign exchange (loss) / gain (net)	(95.06)	9.22	(63.34)	91.43	208.93
Profit on sale of property, plant and equipment (net)	1.03	4.69	1.16	4.72	12.31
Net profit on sale/ fair valuation of financial assets designated as FVTPL	31.49	109.51	51.41	218.20	338.78
Excess provision in respect of earlier periods/ years written back			0.95		15.53
Miscellaneous income	12.17	24.69	30.00	60.75	102.28
	107.16	281.65	344.93	626.33	1,324.57

*includes dividend received from investment in wholly owned subsidiaries.

27 Personnel expenses

	For the quarter ended		For the half year ended		For the year ended
	September 30, 2022	September 30, 2021	September 30, 2022	September 30, 2021	March 31, 2022
	In ₹ Million	In ₹ Million	In ₹ Million	In ₹ Million	In ₹ Million
27.1 Employee benefits expense
Salaries, wages and bonus	6,952.33	4.638.98	13.152.17	8.628.67	19,766.82
Contribution to provident and other funds	362.46	250.18	700.99	477.01	1.016.64
Staff welfare and benefits	147.59	73.39	298.47	168.34	359.74
Share based payments to employees	296.21	147.27	562.24	277 34	739.52
	7.758.59	5.109.82	14.713.87	9.551.36	21,882.72
27.2 Cost of professionals
Related parties	372.62	209.24	606.81	356.03	649.60
- Others	229.12	263.43	422.64	453.89	812.31
	601.74	472.67	1.029.45	809.92	1.461.91
	8.360.33	5.582.49	15.743.32	10.361.28	23,344.63

Other expenses*

	For the quarter ended		For the half year ended		For the year ended
	September 30, 2022	September 30, 2021	September 30, 2022	September 30, 2021	March 31, 2022
	In ₹ Million	In ₹ Million	In ₹ Million	In ₹ Million	In ₹ Million
Travelling and conveyance	113.90	34 95	264.52	75.80	151.53
Electricity expenses (net)	26.68	17.77	46.51	29.25	63.74
Internet link expenses	(2.86)	11.59	25.55	25.16	46.09
Communication expenses	13.73	14 37	33.35	28.40	60.91
Recruitment expenses	64.68	98.01	157.24	153.44	348.05
Training and seminars	30.19	16.91	62.92	28.10	99.17
Purchase of software licenses and support expenses	433.81	204.82	809.18	481.53	1.066.00
Bad debts	٠				12.12
Reversal of allowance for expected credit loss (net)	15.90	1.62	11.61	(4.75)	(29.97)
Rent	33.71	19.19	51.40	34.82	73.22
Insurance	7.40	8.90	16.36	19.56	36.29
Rates and taxes	13.36	10.22	22.52	17.63	51.14
Legal and professional fees	65.73	66 70	152.11	123.62	238.09
Repairs and maintenance
- Plant and Machinery	22.01	26.27	50.03	49.21	120.72
- Buildings	11.03	5.15	19.21	9.75	19.85
- Others	5.13	4 4 4	10.33	9.84	20.43
Selling and marketing expenses	346.53	270.93	656.94	476.15	1,028.63
Fees for sales enablement services		$\blacksquare$
Advertisement, conference and sponsorship fees	5.49	0.47	6.70	1.46	4.23
Computer consumables	4.02	0.84	4.25	2.38	5.39
Auditors' remuneration	1.25	1.16	2.80	2.21	8.92
Corporate social responsibility expenditure	35.00	20.00	50.00	55.00	115 53
Books, memberships, subscriptions	(0.84)	8.04	1.27	9.64	15.76
Directors' sitting fees	1.47	1.77	4.15	4.05	7.43
Directors' commission	7.56	4.38	15.22	11.44	20.83
Loss on receivables and investment in associate		28.29		28.29	28.29
Reversal of provision for receivables and investment in associate		(28.29)		(28.29)	(28.29)
Miscellaneous expenses	45.47	26.63	86.37	54 59	123.68
	1.300.35	875 13	2.560.54	1,698.28	3,707.78

Persistent Systems Limited
Notes forming part of Condensed Interim Financial Statements 29. Earnings per share

			For the quarter ended	For the half year ended		For the year ended
		September 30, 2022	September 30, 2021	September 30, 2022	September 30, 2021	March 31, 2022
Numerator for Basic and Diluted EPS Net profit after tax (In ₹ Million)	(A)	1.751.05	1.523.95	3.499.84	3.184.90	6,858.66
Denominator for Basic EPS Weighted average number of equity shares	(B)	76.425.000	76.425.000	76.425.000	76.425.000	76,425,000
Denominator for Diluted EPS Number of equity shares	(C)	76.425.000	76.425.000	76.425.000	76.425.000	76,425,000
Basic earnings per share of face value of ₹ 10 each (in ₹)	(A/B)	22.91	19.94	45.79	41.67	89.74
Diluted earnings per share of face value of ₹ 10 each (in ₹)	(A/C)	22.91	19.94	45.79	41.67	89.74

	For the quarter ended		For the half vear ended	For the vear ended
	September 30, 2022	September 30, 2021	September 30, 2022	September 30, 2021	March 31, 2022
Number of shares considered as basic weighted average shares outstanding	76.425,000	76.425.000	76.425.000	76.425,000	76.425,000
Add: Effect of dilutive issues of stock options
Number of shares considered as weighted average shares and potential shares outstanding	76.425.000	76.425.000	76.425.000	76.425.000	76.425.000

Parsistent Systems Limited
Notes forming part of Condensed Interim Financial Statements

Financial assets and liabilities

$\ln$ ₹ Million Fair value
hierarchy*

Level 3

Level 1

Level 2

Financial assets/Financial liabilities Financial Assets:			September 30, 2022				September 30, 2021
	FVTPL	FVTOC	Amortised Cost	Cost	FVTPL	FVTOCI	Amortised Cost	Cost

Investments in subsidiaries and associates				666.03				4,341 45
Investments in equity instruments	6.00				6.00
Investments in bonds			2,945.07				3,02248
Investments in mutual funds	2,93136				3,940.93
Loans			3,753.83				1,880.00
Deposit with banks and financial institutions (including interest			1,693.17				5,346.84
accrued but not due on deposits with banks)
Cash and cash equivalents (including unpaid dividend)			22110				641 64
Trade receivables (net)			1,061.01				3,383.92
Forward contracts receivable						13904
Unbilled revenue			3,41742				2,59572
Other non current financial assets			23575				10770
Other non-current financial assets (share application money paid)								2,969.60
Other current financial assets			30.90				2725
Total Financial Assets	2,937 36		23,358.25	7,666.03	3,946.93	139.04	18,005.55	7,311 05
Financial Liabilities:
Borrowings (including accrued interest)			3.69				5.54
Trade payables			086.41				902.14
Lease liabilities			54180				63170
Forward contracts payables		512 24
Other financial liabilities (excluding borrowings)			308.61				166 12
Total Financial Liabilities		512.24	2,940.51				705,50
					In ₹ Million
			March 31 2022		Fair value

Deposit with banks and financial institutions (including interest Cash and cash equivalents (including unpaid dividend) Financial assets/ Financial liabilities accrued but not due on deposits with banks) Investments in subsidiaries and associates Investments in equity instruments Investments in mutual funds Trade receivables (net) Investments in bonds Financial Assets: -oans	6.00 5,183.33 FVTPL	March 31, 2022 EVTOC	Amortised Cost	Cost	Fair value hierarchy ^*



				5,013.10
					Level 3
			2,879.29
					Level ^-
			3,943.68
			6,138.85

			566.61
			4,426.84
Forward contracts receivable		8459			Level 2
Share application money pending allotment
Unbilled revenue			3,533.05
Other non current financial assets			12291
Other current financial assets			10719
Total Financial Assets	5,189.33	84.59	21,718 42	5,013.10
Financial Liabilities:
Borrowings (including accrued interest)			5.63
Trade payables			85498
Lease liabilities			75826
Other financial liabilities (excluding borrowings)			38298
Total Financial Liabilities			2,00185

*Fair value hierarchy:

The farvalue interactly is based on imputs to valuation techniques that at usead to interact the fare or becompled or unobservable and consists of the following three levels.
Level 1 — Inputs are quoted prices (unotion in

Notes forming part of Condensed Interim Financial Statements

31 Related Party Transactions

Refer to the Company's annual financial statements for the ended March 31, 2022 for the full names and other details of the Company's related parties. The Company's significant related party transactions during the period ended and outstanding balances as at September 30, 2022, September 30, 2021 and March 31,
2022 are with its related parties with whom the Company gener

During the period, the Company has subscribed to the shares of Persistent Systems, Inc. amounting to ₹ 1,681.48 million (Corresponding period: Nil / previous year: ₹ 570.25 million).

The Company acquired 100% share capital of Media Agility India Private Limited, a company based in India, with effect from April 29, 2022. (Refer note 6)

32. Contingent liabilities

				In ₹ Million
Sr No	Particulars		As at
			September 30, 2022 September 30, 2021	March 31, 2022
a)	Claims against the company not acknowledged as debt*
$\mathbf{1}$	Indirect tax matters
	(i) In respect to the order passed by the Learned Principal Commissioner of Service Tax, Pune, for Service tax under import of services on reverse charge basis for the Financial Year 2014-15, the 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 Company has paid $\bar{\tau}$ 165.58 million under protest towards the demand and the same forms part of the GST receivable balance. 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.	173.78	17378	173.78
	(ii) In respect of export incentives pertaining to previous periods amounting to $\bar{\tau}$ 255.52 million, which have been refunded under protest with interest of $\bar{\tau}$ 41.03 million, the Company has filed an application with Directorate General of Foreign Trade (DGFT). Based on the documents filed with relevant authorities and based on the consultations with subject matter specialists, the Company believes that its position is most likely be upheld on ultimate resolution.	296.55	296 55	296.55
	(iii) Other Pending litigations in respect of Indirect taxes.	7.85	28.13	13.53
2	Income tax demands disputed in appellate proceedings.	1,023.34	463.61	855.02
b)	Guarantees and Letter of Comfort on behalf of Subsidiaries
	Guarantees given on behalf of subsidiaries	827.33	1.127.59	770.78
2	Letters of comfort on behalf of subsidiary (USD 65 Million (Corresponding period: Nil, Previous year : USD 60 Million) )	5.287.75		4.547.40

* The Company, based on independent legal opinions and judgments in favour of the Company in the earlier years, believes that the liabilities with respect to the above matters is not likely to arise and therefore, no provision is considered necessary in the financial statements.

Notes forming part of Condensed Interim Financial Statements

33 During the year ended March 31, 2022, the Company had acquired businesses from Data Glove IT Solutions Private Limited.

The acquisition of the said business was accounted for using the acquisition method of accounting under Ind AS 103. The Company is in the process of performing the complete
exercise of purchase price allocation of assets a provides the Company a period of twelve months from the acquisition date for completing the accounting of purchase price allocation on provisional basis.

34 During the previous year ended March 31, 2022, the Company had entered into an agreement effecting business acquisition of Shree Infosoft Private Limited, India on November 18, 2021. The acquisition was accounted for using the acquisition method of accounting on provisional basis availing the exemption under Ind AS 103.
During the period, the purchase price allocation was completed and the purchase is allocated to assets acquired and labilities assumed based on fair values at the date of acquisition as follows:

The fair value amount of consideration paid is $\bar{\tau}$ 108.71 million. Purchase Price Allocation:

Particulars	In ₹ Million
Purchase consideration	108.71
Allocated to:
Property, plant and equipment	1.97
Acquired Contractual Rights	52.35
Goodwill	54 39

35 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 "L&FS Group") as on the balance sheet date. These were due for maturity from January 2019 to June 2019. In view of the uncertainty prevailing with respect to recovery of outstanding balances from IL&FS Group, Management of the Company has fully provided for these deposits along with interest accrued thereon till the date the deposits had
become doubtful of recovery. The Management is hopef take steps including legal action that may be necessary to ensure full recovery of the said deposits.
36 The Company has recognized notional interest on lease liability of ₹ 47.21 million (Corresponding period: ₹ 35.64 million/ Previous year: ₹ 68.59 million) under finance cost as required by Ind AS 116: Leases

37 The condensed interim financial statements are presented in ₹ Million and decimal thereof except for per share information or as otherwise stated.

38 Previous period's / year's figures have been regrouped where necessary to conform with the current year's classification.

For Walker Chandiok & Co LLP	For and on behalf of the Board of Directors of
Chartered Accountants	Persistent Systems Limited
Firm Registration No: 001076N/N500013
Digitally signed by SHASHI SHASHI TADWALKAR Date: 2022.10.19 18:24:53 TADWALKAR $+05'30'$ Shashi Tadwalkar Partner Membership No: 101797	Anand Lexhpande Dr. Anand Deshpande Chairman and Managing Director DIN: 00005721	Sandeep Kalra (Oct 49, 2022 17:01 GMT+5.5) Sandeep Kalra Executive Director and Chief Executive Officer DIN: 02506494	Digitally signed by Praveen Praveen Purushottam Purushottam Kadle Date: 2022.10.19 17:13:22 Kadle $+05'30'$ Praveen Kadle Independent Director DIN: 00016814
	Place: Pune Date: October 19, 2022 Sunil Sapre Sunil Sapre (Oct 19, 2022 16:07 GMT+5.5)	Place: Pune Date: October 19, 2022	Place: Pune Date: October 19, 2022
	Sunil Sapre Executive Director and Chief Financial Officer DIN: 06475949	Amit Atre Amit Atre (Oct 19, 2022 15:57 GMT+5.5) Amit Atre Company Secretary Membership No. A20507
Place: Pune Date: October 19, 2022	Place: Pune Date: October 19, 2022	Place: Pune Date: October 19, 2022

AI assistant

Persistent Systems Limited — Interim / Quarterly Report 2022

60826_rns_2022-10-19_7040675f-91b3-4b1b-87c8-ac8f2aae3ce3.pdf

Ref: Symbol: PERSISTENT

Ref: Scrip Code: 533179

Sub: Audited Financial Statements for the quarter and half year ended September 30, 2022

Independent Auditor's Report on the Audit of the Condensed Interim Consolidated Financial Statements for the quarter and half year ended 30 September 2022

Opinion

Basis for Opinion

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

Auditor's Responsibilities for the Audit of the Condensed Interim Consolidated Financial Statements

Persistent Systems Limited Independent Auditor's Report on the Audit of the Condensed Interim Consolidated Financial Statements for the quarter and half year ended 30 September 2022

Other Matters

UDIN:22101797BAGBOU7660

Annexure 1

Of the cash and cash equivalent balance as at September 30, 2022, the Group can utilise ₹ 37.42 million (Corresponding period : ₹ 170.21 million, Previous year: ₹ 35.75 million)only towards certain predefined activitie

CONDENSED INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF YEAR ENDED SEPTEMBER 30, 2022

(In ₹ Million)

Nature and purpose of reserves

a) General reserve

b) Share options outstanding reserve

c) Gain on bargain purchase

d) Capital redemption reserve

e) Special Economic Zone re-investment reserve

f) Cash flow hedge reserve

g) Foreign currency translation reserve

h) PSL ESOP Trust reserve and Treasury shares

es forming part of consolidated interim consolidated financial statements

Nature of operations $\mathbf{1}$

$2.1$ Historical cost convention

2.2 New and amended standards adopted by the Group

2.3 Reclassifications consequent to amendments to Schedule III

3 Principles of consolidation

otes forming part of consolidated interim consolidated financial statements $\mathbf{A}$

4.1 Use of estimates

4.2 Critical accounting estimates

a) Revenue recognition

b) Income taxes

c) Business combination

d) Property, plant and equipmen

e) Leases

Summary of significant accounting policies $4.3$

a) Current versus non-current classification

b) Property, Plant and Equipment

es forming part of consolidated interim consolidated financial statements

c) Intangible assets

d) Depreciation and amortization

e) Borrowing costs

f) Leases

Where the Group is a lessee

es forming part of consolidated interim consolidated financial statements

Group as a lessor

g) Impairment of Non-financial assets

h) Financial instruments

Initial recognition and measure

Non-derivative financial instruments

Financial assets

Financial assets at amortized cost

Financial assets at fair value through other comprehensive income (FVTOCI)

Financial assets at fair value through profit or loss (FVTPL)

s forming part of consolidated interim consolidated financial statements Financial liabilities

Financial liabilities at fair value through profit or loss (FVTPL)

Investments in subsidiaries, associates and joint ventures

Derivative financial instruments

Derecognition

Financial guarantee contracts

Fair value of financial instruments

Impairment of financial assets

i) Revenue recognition

s forming part of consolidated interim consolidated financial statements

Income from software services and products

Interest

Dividend

Contract balances Contract assets

Contract liabilities

i) Government grants

k) Foreign currency translation

Initial recognition

Conversion

Exchange differences

Persistent Systems Limited Interim / Quarterly Report 2022

Of the cash and cash equivalent balance as at September 30, 2022, the Group can utilise ₹ 37.42 million (Corresponding period : ₹ 170.21 million, Previous year: ₹ 35.75 million)
only towards certain predefined activitie

Klisma e-Services Private Limited ('Klisma'), an Associate of the Company has been dissolved w.e.f. August 10, 2021 vide dissolution order
passed by the Hon'ble National Company Law Tribunal, Mumbai Bench.

Of the cash and cash equivalent balance as at September 30, 2022, the Group can utilise ₹ 37.42 million (Corresponding period : ₹ 170.21 million,
Previous year: ₹ 35.75 million) only towards certain predefined activitie

Place: Pune
Date : October 19, 2022

A. Equity share capital
(Refer note 17)