NSE & BSE / 2022-23 / 15

April 27, 2022

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

Ref: Symbol: PERSISTENT

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

Ref: Scrip Code: 533179

Dear Sir/Madam,

Sub: Audited Financial Statements for the quarter and year ended March 31, 2022

We wish to inform you that the Board of Directors at its meeting held on April 26, 2022, and continued on April 27, 2022, has approved the Audited Financial Statements for the quarter and year ended March 31, 2022.

Accordingly, please find enclosed the following documents:

1. Audited Consolidated Financial Statements for the quarter and year ended March 31, 2022;
1. Audited Unconsolidated Financial Statements for the quarter and year ended March 31, 2022.

Please acknowledge the receipt.

Thanking you,

Yours Sincerely, For Persistent Systems Limited

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 year ended 31 March 2022

To the Members 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') and its associate, as listed in Annexure 1, which comprise the Condensed Consolidated Balance Sheet as at 31 March 2022, the Condensed Interim Consolidated Statement of Profit and Loss (including Other Comprehensive Income) for the quarter and year then ended, the Condensed Consolidated Statement of Cash Flows and the Condensed Consolidated Statement of Changes in Equity for the year ended 31 March 2022, 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 and its associate as at 31 March 2022, and its consolidated profit (including other comprehensive income) for the quarter and year then ended, its consolidated cash flows and the consolidated changes in equity for the year ended 31 March 2022.

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 and its associate 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

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 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 and its associate 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 and its associate, 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 and of its associate.

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 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

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

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

Chartered Accountants

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 and its associate 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 and its associate 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 and its associate 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.

Other Matters

We did not audit the condensed interim financial statements of 22 subsidiaries, whose condensed interim financial statements (before eliminating intercompany balances/transactions) reflect total assets of 5,579.46 million and net assets of 2,075.59 as at 31 March 2022, total revenues of 1,454.59 million and 5,782.68 million for quarter and year ended on that date and net cash inflows amounting to 312.85 million for the year ended 31 March 2022, 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.

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

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.

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

For Walker Chandiok & Co LLP

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

SHASHI TADWALKAR Digitally signed by SHASHI TADWALKAR Date: 2022.04.27 22:39:18 +05'30'

Shashi Tadwalkar Partner Membership No:101797

UDIN:22101797AHXPFB7947

Place: Pune Date: 27 April 2022

Page 4 of 5

Chartered Accountants

Annexure 1

List of entities included

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	PARX Werk AG	Wholly owned subsidiary of PSGG
16	PARX Consulting GmbH	Wholly owned subsidiary of PARX Werk AG
17	Capiot Software Private Limited	Wholly owned subsidiary of PSL
18	Capiot Software Inc. (Capiot US)	Wholly owned subsidiary of PSI
19	Capiot Software Pty Limited	Wholly owned subsidiary of Capiot US
20	Capiot Software Pte Limited	Wholly owned subsidiary of Capiot US
21	Persistent Systems S.R.L.	Wholly owned subsidiary of PSI
22	Software Corporation International (Acquired w.e.f. 5 October 2021)	Wholly owned subsidiary of PSI
23	SCI Fusion360 LLC (Acquired w.e.f. 5 October 2021)	Wholly owned subsidiary of PSI
24	Data Glove IT Solutions Limitada (Acquired w.e.f. March 1, 2022)	Wholly owned subsidiary of PSGG
25	Klisma e-Services Private Limited (Dissolved w.e.f. 10 August 2021)	Associate company of PSL

Page 5 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

CONDENSED INTERIM CONSOLIDATED BALANCE SHEET AS AT MARCH 31, 2022

March 31, 2022 March 31, 2021 In ₹ Million ASSETS Non-current assets Property, plant and equipment 6.1 2,917.67 2,401.40 Capital work in progress 1.071.20 121 81 Right of use assets 6.2 1,358.21 852.58 Goodwill 63 85 94 2,790.22 Other Intangible assets 8,269.63 1,229.50 6.4 16,406.93 4,691,23 Financial assets - Investments $\overline{7}$ 3,877.72 3,621.27 8 3,522.00 - Loans - Other non-current financial assets 9 340 74 160.52 Deferred tax assets (net) 10 1.12272 1.037.57 Other non-current assets 531.61 441.52 11 25,801.72 9,952.11 Current assets Financial assets - Investments 12 6,374.95 4,346.91 - Trade receivables (net) 13 9,484.29 5,708.97 - Cash and cash equivalents 14 2,977.99 2,419.30 - Bank balances other than cash and cash equivalents 15 6,166.59 7,389.70 16 - Loans 16.10 21.79 - Other current financial assets 17 3,214.90 2,516.70 Current tax assets (net) 179.57 188.00 Other current assets 1,952.90 2,083.72 18 28,339.25 26,703.13 54,140.97 36,655.24 TOTAL EQUITY AND LIABILITIES EQUITY 5 764.25 764 25 Equity share capital Other equity 32,917.95 27,192.41 33,682.20 27,956.66 LIABILITIES Non-current liabilities Financial liabilities - Lease liabilities 20 716.17 1,114.29 - Borrowings 19 2,800.79 44.27 - Other financial liabilities 23 2,088.60 245.54 240.94 Provisions 21 6,249.22 1,001.38 Current liabilities Financial liabilities - Lease liabilities 20 342.58 222.00 22 - Trade payables - Dues of micro and small enterprises 30.20 10.30 - Dues of creditors other than micro and small enterprises 4.288.41 2.703.24 Borrowings 1,524.56 1.96 - Other financial liabilities 23 2.173.60 388.21 Other current liabilities 24 1,571.72 1,514.95 25 2,477.79 Provisions 3,949.66 Current tax liabilities (net) 348.72 358.85 14,209.55 7,697,20 54,140.97 36,655.24 TOTAL	Notes	As at	As at

			In ₹ Million





















































$\overline{A}$ Summary of significant accounting policies

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

Persistent Systems Limited Kalra Sandees

For and on behalf of the Board of Directors of

$\left.\begin{array}{l|l} \text{SHASH} & \text{Digitally signed by} \ \text{SHASH TADWALKAR} & \text{SHASH TADWALKAR} \ \text{TADWALKAR} & \text{22:39:43 + 05'30'} \end{array}\right.$

ے
Shashi Tadwalkar
Partner

Membership No.: 101797

Dr. Anand Deshpande
Chairman and Managing
Director DIN: 00005721 Place: Pune
Date : April 27, 2022

Anand Destrpande

Sandeep Kalra (Apr.

Sandeep Kaira
Executive Director and Chief Independent Director
Executive Officer DIN: 00016814 Place: Pune
Date : April 27, 2022

may

Place: Pune
Date : April 27, 2022

DIN: 02506494

2022 19:31 GMT+5.5

Sunil Sapre		Amit Atre
Sunil Sapre (Apr 27, 2022 18:30 GMT+5.5)		Amit Atre (Apr 27, 2022 18:05 GMT+5.5)
	Sunil Sapre Executive Director and Chief Financial Officer	Amit Atre Company Secretary
	DIN: 06475949	Membership No. A20507
Place: Pune Date: April 27, 2022	Place: Pune Date: April 27, 2022	Place: Pune Date: April 27, 2022

CONDENSED INTERIM CONSOLIDATED STATEMENT OF PROFIT AND LOSS FOR THE QUARTER AND YEAR ENDED MARCH 31, 2022

	Notes	For the quarter ended		For the year ended
		March 31, 2022	March 31, 2021	March 31, 2022	March 31, 2021
		In ₹ Million	In ₹ Million	In ₹ Million	In ₹ Million
Income
Revenue from operations (net)	26	16,378.54	11,133.58	57,107.46	41,878,88
Other income	27	420.73	400.36	1,439.55	1,077.72
Total income (A)		16,799.27	11,533.94	58,547.01	42,956.60
Expenses
Employee benefits expense	28.1	10.073.67	6,853.90	34,593.10	25, 157.99
Cost of professionals	28.2	2,139.15	1,543.13	7,974.18	5,563.68
Finance costs (refer note 37)		49.29	15.83	118.35	57.94
Depreciation and amortization expense	6.5	511.35	419.05	1,660.12	1,755.50
Other expenses	29	1,353.98	853.25	4,958.47	4,327.06
Total expenses (B)		14,127.44	9,685.16	49,304.22	36,862.17
Profit before tax (A - B)		2,671.83	1,848.78	9,242.79	6,094.43
Tax expense
Current tax		601.27	495 67	2,322 85	1,774.01
Tax charge/ (credit) in respect of earlier periods/ years		40.87	3.68	42.57	10.58
Deferred tax (credit)/ charge		19.79	(28.16)	(26.49)	(196.93)
Total tax expense		661.93	471 19	2,338.93	1,587.66
Net profit for the period/ year (C)		2,009.90	1,377.59	6,903.86	4,506 77
Other comprehensive income
Items that will not be reclassified to profit and loss (D)
- Remeasurements of the defined benefit liabilities / asset (net of tax)		(93.39)	24.52	(183.87)	10.25
		(93.39)	24 52	(183.87)	10.25
Items that may be reclassified to profit and loss (E)
- Effective portion of cash flow hedge (net of tax)		(64.57)	(53.45)	(97.65)	383.54
- Exchange differences in translating the financial statements of foreign operations		(194.88)	120 35	138.96	(20.07)
		(259.45)	66.90	41 31	363 47
Total other comprehensive income for the period/ year (D) + (E)		(352.84)	91 42	(142.56)	373 72
Total comprehensive income for the period/ year $(C) + (D) + (E)$		1,657.06	1,469,01	6,761.30	4,880.49

Earnings per equity share [Nominal value of share ₹10 (Corresponding period/ Previous year: ₹10)]	30
Basic (In ₹)		26.30	18.03	90.34	58.97
Diluted (In ₹)		26,30	18.03	90.34	58.97
Summary of significant accounting policies	4

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
SHASHI TADWALKAR	Digitally signed by SHASHI TADWALKAR Date: 2022.04.27 22:39:59 + 05'30'		Sandeep Kalra (Apr $\n Zr$	.2022 19:31 GMT+5.5) Anand Deshpande
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: April 27, 2022	Place: Pune Date: April 27, 2022	Place: Pune Date: April 27, 2022
		Sunil Sapre		Amit Atre
		Sunil Sapre (Apr 27, 2022 18:30 GMT+5.5)			Amit Atre (Apr 27, 2022 18:05 GMT+5.5)
				Sunil Sapre Executive Director and Chief Financial Officer	Amit Atre Company Secretary
				DIN: 06475949	Membership No. A20507
Place: Pune Date: April 27, 2022				Place: Pune Date: April 27, 2022	Place: Pune Date: April 27, 2022

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

		For the year ended
		March 31, 2022 In ₹ Million	March 31, 2021 In ₹ Million
Cash flow from operating activities
Profit before tax		9,242.79	6,094.43
Adjustments for:
Interest income		(600.22)	(558.70)
Finance costs		118.35	57 94
Depreciation and amortization expense		1,660.12	1,755.50
Unrealised exchange loss/ (gain) (net)		(25.92)	139.55
Change in foreign currency translation reserve		305.64	(42.32)
Exchange loss / (gain) on derivative contracts		79.38	(169.80)
Exchange loss on translation of foreign currency cash and cash equivalents		1.70	11.50
Bad debts Change in provision for expected credit loss (net)		65.27	90.30
Employee stock compensation expenses		(105.06) 950.23	31.32 290.44
Loss / Impairment of non current investments		148.40	18.53
Remeasurements of the defined benefit liabilities / asset (before tax effects)		(183.87)	10.25
Impairment of loan		$\blacksquare$	23.96
Excess provision in respect of earlier years/period (written back)		(66.00)	(41.79)
Profit on sale/ fair valuation of financial assets designated as FVTPL		(354.30)	(346.74)
Profit on sale of property, plant and equipment (net)		(12.45)	(1.34)
Operating profit before working capital changes		11.224.06	7,363.03
Movements in working capital :
Increase in non-current and current loans		5.69	(40.03)
Increase in other non current assets		(147.89)	(76.81)
Increase in other current financial assets		(869.22)	(104.23)
Decrease in other current assets		146.71	58.26
(Increase)/ Decrease in trade receivables		(3,508.56)	58.49
Increase in trade payables, current liabilities and non current liabilities		2,489.72	757.56
Increase in provisions		1,476.47	924.95
Operating profit after working capital changes		10,816.98	8,941.22
Direct taxes paid (net of refunds)		(2,367,12)	(1,581.97)
Net cash generated from operating activities	(A)	8,449.86	7,359.25
Cash flows from investing activities
Payment towards capital expenditure (including intangible assets, capital advances and capital creditors)		(3,853.97)	(1, 281.04)
Proceeds from sale of property, plant and equipment		46.02	30.02
Acquisition of step-down subsidiary including cash and cash equivalents: ₹61.07 (Previous year ₹ 30.90 million)		(6, 154.02)	(448.47)
Purchase of bonds		(711.90)	(712.18)
Proceeds from sale/ maturity of bonds		499.95	350.53
nvestments in mutual funds		(33, 456, 80)	(24, 591, 91)
Proceeds from sale / maturity of mutual funds		35,762.24	25,068.92
Maturity / (Investments) of bank deposits having original maturity over three months nvestments in deposits with financial institutions		1,121.92 (100.00)	(4, 198.89)
Investment in common / preferred stocks		(123.61)
Loan to ESOP Trust		(3,522.00)
Interest received		71874	366.29
Net cash used in investing activities	(B)	(9,773,43)	(5,416,73)
Cash flows from financing activities
Repayment of long term borrowings		(1.84)	(4.54)
Net proceeds from long term borrowings		4,280.99
Payment of lease liabilities		(350.83)	(319.11)
Specific project related grant received			9.00
Interest paid		(118.38)	(58.01)
Dividends paid		(1,987,05)	(1,069.95)
Net cash generated from /(used in) financing activities	(C)	1,822.89	(1,442.61)

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

	For the year ended
	March 31, 2022	March 31, 2021
	In $\bar{\epsilon}$ Million	In ₹ Million
Net increase in cash and cash equivalents $(A + B + C)$	499.32	499.91
Cash and cash equivalents at the beginning of the period/year	2.419 30	1.899 99
Cash and cash equivalents acquired on acquisition	61.07	30.90
Effect of exchange difference on translation of foreign	(1.70)	(11.50)
currency cash and cash equivalents
Cash and cash equivalents at the end of the period / year	2,977.99	2,419.30

Components of cash and cash equivalents
Cash on hand (refer note 14)	0.24	0.41
Balances with banks
On current accounts # (refer note 14)	2.337.96	1.583.20
On saving accounts (refer note 14)	1.64	1 3 3
On exchange earner's foreign currency accounts (refer note 14)	259.20	208.57
On deposit accounts with original maturity less than three months (refer note 14)		625.79
On Escrow accounts** (refer note 14)	378.95
Cash and cash equivalents	2.977.99	2.419.30

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

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

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

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

Digitally signed by SHASHI Date: 2022.04.27 22:40:15 +05'30'

Membership No : 101797

For and on behalf of the Board of Directors of

Persistent Systems Limited Sandeep Kalra andeep Kalra (Apr∜7, 2022 19:31 GMT+5.5

Anand Deshpande

Dr. Anand Deshpande Chairman and Managir
Director DIN: 00005721

Place: Pune Date: April 27, 2022

	Sandeep Kaira	Praveen Kadle
ng	Executive Director and Chief Executive Officer	Independent Director
	DIN: 02506494	DIN: 00016814
	Place: Pune	Place: Pune
	Date: April 27, 2022	Date: April 27, 2022

male

Sunil Sapre Sunil Sapre (Apr 27, 2022 18:30 GMT+5.5)		Amit Atre Amit Atre (Apr 27, 2022 18:05 GMT+5.5)
	Sunil Sapre Executive Director and Chief Financial Officer	Amit Atre Company Secretary
	DIN: 06475949	Membership No. A20507
Place: Pune Date: April 27, 2022	Place: Pune Date: April 27, 2022	Place: Pune Date: April 27, 2022

Persistent Systems Limited
CONDENSED INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED
MARCH 31, 2022

A. Share capital
(refer note 5)

$ U \cup U $ in the $U$

		$(ln \tau$ Million)
Balance as at April 1, 2021	Changes in equity share capital	Balance as at March 31, 2022
	during the period

764 25		764 25

		(In ₹ Million)
Balance as at April 1, 2020	Changes in equity share capital	Balance as at March 31, 2021
	during the year

764.25	-	764.25

| 2013[10] Systems I Timitel
Condensed Interni Consolidated Statement of Changes in Equity for the Year Ended March 31, 2022
B. Other equity

			reserve
		argared in	urchase
		j S	$\frac{1}{2}$ į
		neral reserve
֖֖֖֖֖֖ׅ֪֪ׅ֪֪ׅ֚֚֚֚֚֚֚֚֚֚֚֚֚֚֚֬֝֝֝֝֝֝֝֝֟֝֬֝֝֬֝֬֝֬֝֬֝֬֝֬֝֬֝֬֝֬֝֬֝֬֝֬	֧֖֖֖֖֖֧֧֧֧֧֧֧֦֧֧֧֧֧֧֧֧֧֧֧֧֧֧֧֧֧֧֧֧֧֧֧֚֚֚֚֚֚֚֚֚֚֚֚֚֚֚֚֚֚֝֝֓֬֝֬֝֓֞֝֬֝֓֬֓֬֝֬֓֬֬֬֬֬֬֬ ֧֢֧֧֪֧֪֧֪֧֪֧֪֧֪֪֧֪֧֪֧֪֪֧֪֧֪֪֪֪֪֪֪֪֪֪֪֪֪֚֝֘

$\frac{(\ln \overline{\epsilon} \text{ Million})}{\text{Total}}$

									In ₹ Million)
Particulars				Reserves and surplus				tems of other comprehensive income	Total
	General reserve	Share options	Gain on bargain	Capital redemption	Special economic zone re-	Retained earnings	Effective portion of cash	Exchange differences
		outstanding reserve	purchase	reserve	investment reserve		flow hedges	on translating the
								financial statements of foreign operations
Balance as at April 1, 2021	4,35653	47070	5731	3575		11,564.42	139.45	56825	27, 192 41
let profit for the period						6,90386			6,90386
other comprehensive income for the period						(183.87)	(9765)	13896	(142.56)
Dividend						(1, 98705)			1,987 05)
Fransfer to general reserve	3,02030					2,743,46
Employee stock compensation expenses		$(276.84)$ 950.23							95023
ther changes during the period	(0.18)	075	049						1.06
Balance at March 31, 2022	17,376.65	1,144.84	5780	3575		13,553.90	41.80	707.21	32,91795
									]n ₹ Million)
Particulars				Reserves and surplus				tems of other comprehensive income	Total
	General reserve	Share options	Gain on bargain	Capital redemption	Special economic zone re-	Retained earnings	Effective portion of cash Exchange differences
		outstanding reserve	purchase	reserve	investment reserve		flow hedges	on translating the
								inancial statements of
								foreign operations
Balance as at April 1, 2020	12,22741	29051	5771	3575	4995	10,08774	(24409)	58832	23,093.30
let profit for the period						4,50677			4,506.77

		.	֧֧֖֖֖֧֧ׅׅ֧֧֧֧֧֧֧֧֧֧֧֧֚֚֚֚֚֚֚֚֚֚֚֚֚֚֚֚֚֚֝֝֝֓֝֬֝֬֝֓֝֬֝֬֝֬֝֬֝֬֝֬֝֬֝֬֝֬֝֬֝֬֝֬֝֬	$\vdots$			$\frac{1}{2}$	financial statements of
Balance as at April 1, 2020	12,22741	290.51	5771	3575	4995		(24409)	58832 foreign operations
vet profit for the period						$\begin{array}{c} 10,087 \ 74 \ 4,506 \ 77 \ 10.25 \end{array}$			23,093,30 4,506,77 4,506,72 (1,069,95)
Other comprehensive income for the year							383.54	(20.07)
"Interim dividend						1,06995)
Transfer to retained earnings					(49.95)	49.95
Transfer to general reserve	1,020.34					(2,02034)
	0878	108.78)
Adjustments towards employees stock options Employee stock compensation expenses		29044							290.44
Other changes during the year		(147)	0.40						(187)
Balance at March 31, 2021	14,35653	470.70	57 31	3575		1,564 42	39.45	568.25	27,192.41

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

For Walker Chandiok & Co LLP
Chartered Accountants
Firm Registration No.: 001076NW500013

SHASHI
SHASHI Shashi Tadwalkar
TADWALKAR 224035-10530

Shashi Tadwalkar
Partner

Membership No.: 101797

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

2022 19:31 GM Sandeep Kalendi, 2022.15 Anand Deshpande

Place: Pune
Date : April 27, 2022 Praveen Kadle
Independent Director Marie DIN: 00016814 Sandeep Kalra
Executive Director and
Chief Executive Officer Place: Pune
Date : April 27, 2022 DIN: 02506494 Dr. Anand Deshpande
Chairman and Managing
Director Place: Pune
Date : April 27, 2022 DIN: 00005721

Membership No A20507 Amit Atre
Company Secretary $\frac{SMIJSGD\ell}{S^{1011}}$ San $\frac{S_{12}D\ell}{S_{2111}}$ and $\frac{S_{21}D\ell}{S_{2111}}$ and $\frac{S_{22}D\ell}{S_{2211}}$ and $\frac{S_{22}D\ell}{S_{2211}}$ and $\frac{S_{22}D\ell}{S_{2211}}$ and $\frac{S_{22}D\ell}{S_{2211}}$ and $\frac{S_{22}D\ell}{S_{2211}}$ DIN: 06475949

Place: Pune
Date : April 27, 2022 Place: Pune
Date : April 27, 2022

$\frac{AnditAfree}{\text{Anti Atree (Apr 27, 2022 18:05 GMT+5.5)}}$

Place: Pune
Date : April 27, 2022

CONDENSED INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED MARCH 31, 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 condensed interim consolidated 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 is created out of the profit in accordance with the provisions of Section 10AA(1)(ii) of the Income tax Act, 1961. The reserve had been entirely 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.

es forming part of condensed interim consolidated financial statements

1 Nature of operations

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 shares of the
Company are listed on Bombay Stock Excha Company offers complete product life cycle services.

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

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

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

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

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. (previously owned by Aepona Holdings Limited) 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 application developers and an Internet of Things service creation platform that allows enterprises to add a service layer (or "business logic") to the basic APIs exposed to by co

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 the

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 including 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 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 has been dissolved w e f. August 10, 2021.

lotes forming part of condensed interim consolidated financial statements

$\overline{\mathbf{2}}$ Basis of preparation

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 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 Group 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 e

Reporting, as prescribed by Section 133 of the Companies Act, 2013 ("the Act") read with Companies (Indian Accounting Standards) Rules, 2015 and guidelines issued by the Securities and
Exchange Board of India (SEBI). These Exchange Board of India (SEBI). These
applicable financial reporting framework.

2.2 Compliance with Ind AS

These condensed interim consolidated financial statements are prepared in accordance with Indian Accounting Standard (Ind AS), the provisions of the Companies Act, 2013 ("the Act") (to the extent notified) and guidelines issued by the Securities and Exchange Board of India (SEBI). The Ind AS are prescribed under Section 133 of the Act read with Rule 3 of the Companies (Indian
Accounting Standards) Rules, 201

2.3 New and amended standards adopted by the Group

The Group has applied the following amendment to Ind AS for the first time in it's annual reporting period commencing 1 April 2021:

-Extension of COVID-19 related concessions - amendments to Ind AS 116

-Interest rate benchmark reform - amendments to Ind AS 109, Financial Instruments, Ind AS 107, Financial Instruments: Disclosures, Ind AS 104, Insurance Contracts and Ind AS 116, Leases. The amendments listed above did not have any impact on the amounts recognised in prior periods and are not expected to significantly affect the current or future periods

2.4 New amendments issued but not effective

The Ministry of Corporate Affairs has vide notification dated 23 March 2022 notified Companies (Indian Accounting Standards) Amendment Rules, 2022 which amends certain accounting standards, and are effective 1 April 2022. These amendments are not expected to have a material impact on the company in the current or future reporting periods and on foreseeable future transactions.

2.5 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 effective from 1 April 2021.

Consequent to above, the Group has changed the classification/presentation of (i) current maturities of long-term borrowings (ii) security deposits, in the current 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 accrued were included in 'other financial liabilities' line item.

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)	March 31, 2021 (Previously Reported)	Increase / (Decrease)	March 31, 2021 (Restated)
Non-current assets
Loans	134.76	(134.76)
Other non-current financial assets	25.76	134.76	160.52
Current assets
Loans	71.26	(49.47)	21.79
Other current financial assets	2.467.23	49.47	2.516.70
Current liabilities
Other financial liabilities	390.17	(1.96)	388.21
Borrowings		1.96	1.96

3 Principles of consolidation

The condensed interim consolidated financial statements of the Parent Company and its subsidiaries ("the Group") for the year ended March 31, 2022 are prepared in accordance with generally accepted accounting principles applicable in India, and the Indian Accounting Standard 110 (Ind AS 110) on 'condensed interim consolidated financial statements', notified by Companies
(Accounting Standards) Rules, 2015, ("

The Parent Company consolidates entities which it owns or controls. The condensed interim consolidated financial statements comprise the financial statements of the company and its subsidiaries as disclosed below. Control exists when the parent company has power over the entity, is exposed or has rights to variable returns from its involvement with the entity; and has the subsidiaries as disclosed be entity's returns. Subsidiaries are consolidated from the date control commences until the date control ceases.

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 s company over its cost is treated as gain on bargain purchase in the financial statements. Goodwill arising on consolidation is not amortized. It is tested for impairment on a periodic basis and written off if found impaired.

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 a

The 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 condensed interim consolidated financial statements
The subsidiary and of condensed interim consolidated financial statements
The subsidiary and associate companies considered in condensed interim consolida

Name of the subsidiary/ associate	Ownership Percentage as at		Country of incorporation
	31 Mar 22	31 Mar 21
Persistent Systems, Inc.	100%	100%	USA
Persistent Systems Pte Ltd.	100%	100%	Singapore
Persistent Systems France SAS	100%	100%	France
Persistent Telecom Solutions Inc.	100%	100%	USA
Persistent Systems Malaysia Sdn. Bhd.	100%	100%	Malaysia
Aepona Group Limited	100%	100%	reland
Aepona Limited	100%	100%	UK
Persistent Systems Lanka (Private) Limited	100%	100%	Sri Lanka
Persistent Systems Mexico, S.A. de C.V.	100%	100%	Mexico
Persistent Systems Israel Ltd.	100%	100%	srael
Persistent Systems Germany GmbH	100%	100%	Germany
PARX Werk AG	100%	100%	Switzerland
PARX Consultina GmbH	100%	100%	Germany
Youperience GmbH	100%	100%	Germany
Youperience Limited	100%	100%	United Kingdom
CAPIOT Software Private Limited (Acquired w.e.f. October 29, 2020)	100%	100%	India
CAPIOT Software Inc. (Acquired w.e.f. November 7, 2020)	100%	100%	USA
CAPIOT Software Pty Limited (Acquired w.e.f. November 7, 2020)	100%	100%	Australia
CAPIOT Software Pte Limited (Acquired w.e.f. November 7, 2020)	100%	100%	Singapore
Persistent Systems S.R.L. (Incorporated on March 23, 2021)	100%	100%	Italy
Software Corporation International (Acquired w e f October 5, 2021)	100%		USA
SCI Fusion360 LLC (Acquired w.e.f October 5, 2021)	100%	$\blacksquare$	USA
Data Glove IT Solutions Limitada (Acquired w.e.f. March 1, 2022)	100%		Costa Rica
Klisma e Services India Pvt. Ltd. (Dissolved w.e.f August 10, 2021)		50%	India

Notes forming part of condensed interim consolidated financial statements

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 reviewed annotation 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 estimat

4.2 Estimation of uncertainties relating to the global health pandemic from COVID-19:

The Group has considered all possible impacts of COVID-19 in the preparation of these financial statements, including but not limited to its assessment of, liquidity and going concern
assumption, recoverable values of its effectiveness of its hedges and impact on the recoverable amount of goodwill. The Group has carried out this assessment based on available internal and external sources of information up to the date of approval of these financial statements and believes that the impact of COVID-19 is not material to these financial statements and expects to recover the carrying amount of its
assets. The impact of COVID-19 on

4.3 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 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 and identification of d 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.

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 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 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

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.

e) Leases

tes forming part of condensed interim consolidated financial statements ##### Summary of significant accounting policies

a) Current versus non-current classification

exercit the state in the state basilied 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 time betwee time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the Group has ascertained its operating cycle as 12 months.

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 the cost of and directly attributable costs of bringing the asset to its working condition for its intended use, cost of are met. Any trade discounts and rebates are deducted in arriving at the purchase price.

Gains or losses arising from disposal of Property, Plant and Equipment are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the statement of profit and loss when the asset is disposed.

c) Intangible assets

Intangible assets including software licenses of enduring nature and contractual rights acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business combination is their fair value at the date of acquisition. Following initial recognition, intanglible assets are carried at cost less accumulated imposition and accumulated impairment
Iosses, if any. Cost compris

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

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.

es forming part of condensed interim consolidated financial statements

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

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 determined separately and such asset component is depreciated over its separate useful life.

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.

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 relative stand-alone price of the lease component and the aggregate stand-alone price of the non-lease components.

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 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 modern the surprise transformation of the method of costs to be incurred by the lessee in dismantling and removing the underlying asset or restoring the underlying asset or restoring the underlying asset or site or or stat

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 de

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 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

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 Group is
reasonably certain to exercise that opti

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 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 associated with these leases are recognized in the statement of profit and loss on a straight line basis.

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 lessee, the contract is classified as a finance lease. All other leases are classified as operating leases. The Group recognises lease payments received under
operating leases as income over the

tes forming part of condensed interim consolidated financial statements

g) Impairment of Non-financial asset

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 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 carryi 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 specific to the asset and risks

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 operati individual asset, an entity identifies the lowest aggregation of assets that general at the goodwill is monitored for internal management purposes. If recoverable amount cannot be determined for an individual asset, an ent recoverable amount. Key assumptions on which management has based its determination of recoverable amount include estimated long term growth rates, weighted average cost of capital and estimated operating margins. Cash flow projections take into account past experience and represent management's best estimate about future developments.

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 parameters (turnover and earnings multiples) did not identify any probable scenarios where the CGU's recoverable amount would fall below its carrying amount.

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 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 are not at fair value through profit or loss, are added to the fair value on initial recognition.

Non-derivative financial instruments

Financial assets

Subsequent measurement

Financial assets at amortized cost

Financial assets that are held within a business model whose objective is to hold assets for collecting contractual cash flows and whose contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding are subsequently measured at amortized cost using the effective interest rate method. The change in measurements are recognized as finance income in the statement of profit and loss.

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

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

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)

Investments in subsidiaries, associates and joint ventures

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

Derivative financial instruments

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.

s forming part of condensed interim consolidated financial statements

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 detectographico under Ind AS 109. A financial aliability (or a part of a financial liability) is derecognized from the Group's Balance Sheet when the obligation specified in the contract is discharged or cancelled or expir as FVOCI, where such cumulative gain or loss is not recycled to statement 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

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 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 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 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 Group 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 valu fair value, the carrying amounts approximate fair value due to the short maturity of these instruments.

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 the comprehensive income (FVTOCI). ECL is th

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

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 obli 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 obli 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 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 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

es forming part of condensed interim consolidated financial statements

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 receives the consideration from the customer before the Group provides services or transfers products to the customer, a contract liability is recognised for the received consideration. If the G

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 Group, 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

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

Provident fund is a defined contribution plan covering eligible employees. The Group and the eligible employees make a monthly contribution to the provident fund maintained by the Regional Provident Fund Commissioner equal to the specified percentage of the 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

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 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

Superannuation is a defined contribution plan covering eligible employees. The contribution to the superannuation fund managed by the insurer is equal to the specified percentage of the basic salary of the eligible employees as per the scheme. The contribution to this scheme is charged to the statement of profit and loss on an accrual basis. There are no other contributions payable other than contribution payable to the respective fund.

Leave encashment

Accumulated leave, which is expected to be utilized within the next twelve months, is treated as short-term employee benefit. The Group measures the expected cost of such absences as the additional amount that it expects to pay as a result of the unused entitlement that has accumulated at the reporting date.

The Group treats accumulated leave expected to be carried forward beyond twelve months, as long-term employee benefit for measurement purposes. Such long-term compensated absences
are provided for based on the actuarial va the statement of profit and loss. Expense on non-accumulating compensated absences is recognized in the period in which the absences occur.

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

Long service awards

es forming part of condensed interim consolidated 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 Group operates. The tax rates and tax laws used to compute the amount are those that are enacted or
substantively enacted, at the repor

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 substanti

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 com 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 s

In the situations where the Group is entitled to a tax holiday under the Income-tax Act, 1961 enacted in India or tax laws prevailing in the respective tax jurisdictions where it operates, no deferred tax (asset or liability) is recognized in respect of temporary differences which reverse during the tax holiday period, to the extent the Group's gross total income is subject to the
deduction during the tax holid originate.

The carrying amount of deferred tax asset is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available against which such deferred tax assets can be realized.

Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred tax assets and deferred tax liabilities relate to the same taxable entity and the same taxation authority.

Deferred tax relating to items recognized outside the statement of profit and loss is recognized in co-relation to the underlying transaction either in other comprehensive income or directly in

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-seament 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 share

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 share

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 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 mo date and adjusted to reflect the current best estimates.

g) 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 rar

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 (equitysettled 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 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 best 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 equit

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 havi

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.

es forming part of condensed interim consolidated financial statements

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 combinations

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 in other comprehensive income and accumulated in equity as capital reserve provided there is dear evidence of the underlying reasons for classifying the business
combination as a bargain purchase.

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

Persistent Systems Limited
Notes forming part of Condensed In

-e.
ed Interim Consolidated Financial Statement∘

5 Equity share capital

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

			(In Million)


No of shares	Amount ₹	No of shares	Amount ₹
76.425	764.25	76.425	764.25

76 425	764.25	76.425	764.25
		The reconciliation of the number of shares outstanding and the amount of share capital is set out below: As at March 31, 2022	As at March 31, 2021

b) Terms / rights attached to equity shares

The Parent 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 Parent
Company declares and pays dividends in Indian rupees

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 bonus shares issued, shares issued for consideration other than cash and shares bought back during the period of five years
immediately preceding the reporting date

	For the period of five years ended March 31.2022 No in Million	For the period of five vears ended March 31, 2021 No in Million
Equity shares bought back	3.575	3.575

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

Name of the shareholder*	As at March 31, 2022		As at March 31, 2021
	No. in million	% Holding	No. in million	% Holding
Dr. Anand Deshpande and Mrs. Sonali Anand Deshpande	22.97	30.06	22.96	30.04
Schemes of HDFC Mutual Fund	3.45	4.5 ⁴	5.37	7.03

* 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

6.1 Property, plant and equipment

	Freehold		Land Buildings ^* Computers	equipments Office	equipment Plant and	improvements	Leasehold Furniture and Vehicles fixtures		Total
Gross block (At cost)
As at April 1, 2021	22191	2,455.09	2,943.59	96 51	416.28	44.29	699.80	724	,884.71
Additions		135	,068.37	536	7039	271	6359		21177
Additions through business combination (refer note 35)			2113	1.35	415		0.48	0.03	27 14 162 18
Disposals			3203	4.24	9021	077	3493
Effect of foreign currency translation from functional currency to reporting currency	(0.29)	(1, 28)	287	140	(0.72)	146	5.24		868
As at March 31, 2022	221.62	2,455.16	4,00393	100.38	1,399.89	4769	734 18	727	8.970.12
Accumulated depreciation
		,183.45	2,289 84	8641	.224.51	3984	65428	4.98	5,483.31
As at April 1, 2021 Charge for the period		99.08	50293	711	55.60	455	4987	0.97	72011
Disposals			30.16	4.24	9005	0.69	3452		159.66
Effect of foreign currency translation from functional currency to reporting currency		(0.55)	531	124	(125)	$\frac{5}{1}$	263		869
As at March 31, 2022		1,28198	2,76792	90.52	1.188.81	45.01	67226	585	6,05245
Net block
As at March 31, 2022	221.62	1,17318	1,236.01	986	211.08	268	61 92	132	291767
As at March 31, 2021	221.91	1,27164	65375	1010	191 T7	445	4552	226	2,401 40

6.1 Property, plant and equipment

			Land Buildings ^® Computers	Office	Plant and		Leasehold Furniture and Vehicles		Total
	Freehold			equipments	equipment	improvements	fixtures
Gross block (At cost)
As at April 1, 2020	22137	2,45204	2,45777	93.20	39941	45.92	69312	724	1,37007
Additions		0.67	55991	617	5641		36.27		65943
Additions through business combination			2732	0.69	0.12		720		3533
Disposals			8029	223	3987	$\frac{5}{3}$	3539		16159
Effect of foreign currency translation from functional currency to reporting currency	0.54	238	(21.12)	(1.32)	0.21	2.18	(1.40)		(18.53)
As at March 31, 2021	221.91	2,455 09	2,943 59	96.51	1,416.28	44.29	699.80	724	7,884.71
Accumulated depreciation
As at April 1, 2020		1,083.58	2,092.05	80.57	,206.20	35.51	64351	4.05	5,145.47
Additions through business combination			2564	0.34	0.05		230		2833
Charge for the year		9910	25853	8.38	5440	5.79	4153	0.93	468 66
Disposals		,	6710	2.02	36.56	2.94	3123		13985
Effect of foreign currency translation from functional currency to reporting currency		0.77	(19.28)	(0.86)	042	148	(183)		(1930)
As at March 31, 2021		118345	2 289 84	86 41	1,224.51	3984	65428	4.98	5,483 31

As at March 31, 2021 Net block	221.91	1,271 64	65375	10.10	19177	445	45.52	2.26	2,401 40
As at March 31, 2020	22137	1,368 46	36572	12.63	193.21	10.41	49.61	្លឹ	2,224.60

" Note: Buildings indude those constructed on leasehold land;
a) Gross block as on March 31, 2022 ₹ 1,455,94 million (Previous +59,64 million)
b) Accumulation depresent may sen ₹ 555,94 million (Previous +59,64 million)

6.2 Right-of-use assets

			(In ₹ Million)
	Leasehold Land	Office premises	Total
Gross block (At cost)
As at April 1, 2021	37.50	1.208 13	1.245 63
Additions during the period		831.31	831.31
Disposals		201.25	201.25
Effect of foreign currency translation of foreign operations		3.56	3.56
from functional currency to reporting currency
As at March 31, 2022	37.50	1,841.75	1,879.25
Accumulated amortisation
As at April 1, 2021	1.18	391.87	393.05
Charge for the period	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
As at March 31, 2021	36.32	816.26	852.58
			(In ₹ Million)
	Leasehold Land	Office premises	Total

Gross block (At cost) As at April 1, 2020	37.50	796.75	834.25
Additions during the period		584.67	584.67
Acquistion		2.52	2.52
Disposals		165.16	165.16
Effect of foreign currency translation of foreign operations		(10.65)	(10.65)
from functional currency to reporting currency
As at March 31, 2021	37 50	1,208.13	1,245.63
Accumulated depreciation
As at April 1, 2020	0.60	266.84	267 44
Acquistion		0.10	0.10
Charge for the year	0.58	250.88	251.46
Disposals		121,83	121.83
Effect of foreign currency translation of foreign operations from functional currency to reporting currency		(4.12)	(4.12)
As at March 31, 2021	1.18	391 87	393.05
Net block
As at March 31, 2021	36,32	816.26	852.58
As at March 31, 2020	36.90	529.91	566.81
6.3 Goodwill
		As at	(In ₹ Million) As at
		March 31, 2022	March 31, 2021
Cost Balance at beginning of period/ year		85.94	88.94
Additional amounts recognised from business combinations (refer note 35)		2.636 81
Effect of foreign currency translation of foreign operations		67.47	(3.00)

2,790.22 85.94

Fried of loneigh carrency to reporting currency
from functional currency to reporting currency
Balance at end of period/ year

6.4 Other Intangible assets

6.4 Other Intangible assets				(In ₹ Million)
	Software	Acquired contractual	Provisional	Total
		rights	intangible assets
Gross block
As at April 1, 2021	2.912.77	5,744 93		8.657.70
Additions	62.65	182.63		245.28
Additions through business combination (refer note 34)		980.16	6,651.74	7,631.90
Disposals	2.44	0.04		2.48
Effect of foreign currency translation from functional currency to reporting currency	58.47	(94.15)	44.56	8.88
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 period	70.76	526.18	54.56	651.50
Disposals	1.78	0.01		1.79
Effect of foreign currency translation from functional currency to reporting currency	58.54	134.47	0.73	193.74
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
As at March 31, 2021	175.97	1.053.53		1.229.50
				(In ₹ Million)
		Software	Acquired contractual	Total
			rights
Gross block
As at April 1, 2020		2.779.57	5.214 42	7.993.99
Additions		185.76	256.64	442.40
Additions through business combination			363.16	363.16
Disposals		2.94		2.94
Effect of foreign currency translation from functional currency to reporting currency		(49.62)	(89.29)	(138.91)
As at March 31, 2021		2,912.77	5,744.93	8,657.70
Accumulated amortization
As at April 1, 2020		2.732.72	3.826.34	6.559.06
Charge for the year		59 74	975 64	1.035 38

Charge for the year
Disposals
Effect of foreign currency translation from functional currency to reporting currency
As at March 31, 2021 $2.89$ $(52.77)$ $2,736.80$ $(110.58)$
4,691.40 $(163.35)$
$(163.35)$
$7,428.20$ Net block
As at March 31, 2021
As at March 31, 2020 $\frac{175.97}{46.85}$ $\frac{1,053,53}{1,388,08}$ $\frac{1,229.50}{1,434.93}$

6.5 Depreciation and amortization

6.5 Depreciation and amortization
				(In ₹ Million)
	For the Quarter Ended		For the year ended
	March 31, 2022	March 31, 2021	March 31, 2022	March 31, 2021
On Property, Plant and Equipment	231.19	124.68	720.11	468.66
On Right of Use assets	77.82	64 26	288.51	251.46
On Other Intangible assets	202.34	230.11	651.50	1,035.38
	511 35	419.05	1.660.12	1.755.50

Non-current financial assets : Investments

	As at March 31, 2022 In ₹ Million	As at March 31, 2021 In ₹ Million
Investments carried under equity accounting method
Unquoted Investments Investments in equity instruments
In associate
Klisma e-Services Private Limited [Holding Nil. (Corresponding period/ Previous year 50%)]#
Nil (Previous year: 0.005 million) shares of ₹10 each, fully paid up		0.05
Less : Writeoff / Impairment		(0.05)

Total investments carried equity accounting method (A)	$\overline{a}$	$\overline{a}$

Investments carried at amortised cost Quoted investments
In bonds [Market value ₹ 2,863.32 million (Previous year ₹ 2,727.32 million)]	2,801.81	2,557.92
Add: Interest accrued on bonds Total investments carried at amortised cost (B)	77.48 2,879.29	72.88 2,630.80

Designated as fair value through profit and loss Quoted investments
- Investments in mutual funds
Fair value of long term mutual funds (refer Note 7a)	836.42 836 42	806 99 806 99

Unquoted investments Investments in Common Stocks / Preferred Stocks
- Others*
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	15 16	14.73
each, fully paid up
Less : Change in fair value of investment	(15.16)	(14.73)

Altizon Systems Private Limited 3,766 equity shares (Corresponding period/ Previous year: 3,766 equity shares) of ₹	6.00	6.00
10 each, fully paid up
	6.00	6.00
Hygenx Inc. 0.25 million (Corresponding period/ Previous year : 0.25 million) Preferred stock of \$	15 16	14.62
0.001 each, fully paid up
Less : Change in fair value of investment	(15.16) ٠	(14.62)

OpsDataStore Inc. Nil (Corresponding period/ Previous year: 0.20 million) Preferred stock of \$ 0.001		14.62
each, fully paid up
Less : Change in fair value of investment		(14.62)

Trunomi Inc. 0.28 million (Corresponding period/ Previous year : 0.28 million) Preferred stock of \$	18.95	18.28
0.0002 each, fully paid up
Ampool Inc.		18.28
Nil (Corresponding period/ Previous year: 0.55 million) Preferred stock of \$ 0.4583
each, fully paid up Add / (less) : Change in fair value of investment		(18.28)

Cazena Inc. ^
Nil (Corresponding period/ Previous year: 0.59 million Common Stock of \$ 0.0001 each), fully paid up		146 22
Add / (less) : Change in fair value of investment
	٠	146.22
Monument Bank	123.61
0.024 million (Previous year: Nil) Stock of GBP 50 each), fully paid up
	142.56	164.50

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 company has written off the entire amount of investment of Rs. 1

Non-current financial assets : Investments (refer note 31) (contd)

	As at March 31, 2022 In ₹ Million	As at March 31, 2021 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 fully paid up)	9.47	9.14
Less : Change in fair value of investment	(9.47)	(9.14)
	$\blacksquare$
Akumina Inc. 0.40 million Preference shares of \$ 0.443 each (Previous year : 1 convertible note of USD 146,429 each, fully paid up)	13.45	12.98
	1345	12.98
- Investments in Convertible Notes Ustvme 1 (Corresponding period/ Previous year: 1) convertible note of USD 250,000 each, fully paid up		18.28
Add / (less) : Change in fair value of investment		(18.28)

Total Investments carried at Fair Value (C)	998 43	990 47
Total investments $(A) + (B) + (C)$	387772	3,621.27
Aggregate amount of impairment in value / change in fair value of investments Aggregate amount of quoted investments Aggregate amount of unquoted investments	39.79 2.879.29 1.038.22	89.72 2,630,80 1.080.19

* Investments, where the Group 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 othe

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

	As at	As at
	March 31, 2022	March 31, 2021
	In ₹ Million	In ₹ Million
Axis mutual fund	471.15	400.50
IDFC mutual fund	365 27	370 31
Sundaram mutual fund	$\blacksquare$	36.18
	836.42	806.99

Persistent Systems Limited
Notes forming part of Condensed Interim Consolidated Financial Statements
8. Non-current financial assets : Loans (refer note 31)

	As at March 31, 2022 In ₹ Million	As at March 31, 2021 In ₹ Million
Carried at amortised cost
Other loans and advances
Unsecured, considered good - Loan to ESOP trust	3.522.00
Unsecured, credit impaired	0.58	23.63
	3.522.58	23.63
Less: Impairment of non-current loans	(0.58)	(23.63)
	3,522.00
	3.522.00

9. Other non-current financial assets (refer note 31)

	As at March 31, 2022 In ₹ Million	As at March 31, 2021 In ₹ Million
Non-current bank balances (refer note 15)	3.19	24.42
Add: Interest accrued but not due on non-current bank deposits (refer note 15)	0.17	1.34
Deposits with banks (Carried at amortised cost)	3.36	25.76
Deposits with financial institutions	430.00	430.00
Add: Interest accrued on deposit with financial institutions	0.98	0.98
Less: Credit impaired (refer note 38)	(430.98)	(430.98)

Unsecured, considered good	100.00
Add: Interest accrued	0.41
	100 41
Security deposits	236.97	134 76
	340.74	160.52

10. Deferred tax asset (net) *

	As at March 31, 2022 In ₹ Million	As at March 31, 2021 In ₹ Million
Deferred tax liabilities
Differences in book values and tax base values of block of property, plant and equipment and intangible assets	89.31
Capital gains	51.11	61.06
Others	7.54	66.47
	147.96	127.53
Deferred tax assets
Provision for leave encashment	224.94	184 65
Provision for long service awards	134 29	117.05
Allowance for expected credit loss	43.27	93.49
Differences in book values and tax base values of block of property, plant and equipment and intangible assets	170.18	63.43
Brought forward and current year losses	99.41	43.77
Tax credits	407.13	435.71
ROU asset and lease liability	31.71	31.74
Provision for shared based payments to employees	48.56	40.28
Others	111 19	154 98
	1.270.68	1,165.10
Deferred tax liabilities after set off
Deferred tax assets after set off	1,122.72	1.037.57

* 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

Other non-current assets

As at	As at
March 31, 2022 In ₹ Million	March 31, 2021 In ₹ Million
104.95	60.54
296.55	296.55
130.11	84 43
531.61	441.52

Current financial assets : Investments (refer note 31)

	As at March 31, 2022	As at March 31, 2021
	In ₹ Million	In $\bar{\tau}$ Million
Designated as fair value through profit and loss - Quoted investments
Investments in mutual funds
Fair value of current mutual funds (refer Note 12a)	4.346.91	6.374.95
	4.346.91	6.374.95
Total carrying amount of investments	4.346.91	6.374.95
Aggregate amount of quoted investments	4,346.91	6.374.95
Aggregate amount of unquoted investments	۰

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

	As at	As at
	March 31, 2022	March 31, 2021
	In ₹ Million	In ₹ Million
Aditya Birla Sun Life Mutual Fund	883.65	1.011 03
Axis Mutual Fund	672.70	824.68
Kotak Mutual Fund	521.63	478.21
Nippon India Mutual Fund (formerly known as Reliance Mutual Fund)	472.88
IDFC Mutual Fund	457.54	911.72
DSP Mutual Fund	443.20	37.38
ICICI Prudential Mutual Fund	399.94	710.33
UTI Mutual Fund	337.68	723.19
SBI Mutual Fund	120.01	166.36
Sundaram mutual fund	37.68
HDFC Mutual Fund		963.10
L&T Mutual Fund		511.71
PGIM India Mutual Fund (formerly known as DHFL Pramerica Mutual Fund)		37.24
	4.346.91	6,374.95

Trade receivables

	As at	As at
	March 31, 2022	March 31, 2021
	In ₹ Million	In ₹ Million
Unsecured, considered good	9,484 29	5.708 97
Unsecured, credit impaired	165.78	271 64
	9,650.07	5,980.61
Less: Allowance for expected credit loss	(165.78)	(271.64)
	9.484.29	5,708.97
	9.484.29	5,708.97

Notes forming part of Condensed Interim Consolidated Financial Statements

Cash and cash equivalents

	As at	As at
	March 31, 2022	March 31, 2021
	In ₹ Million	In ₹ Million
Cash and cash equivalents as presented in cash flow statement
Cash in hand	0.24	0.41
Balances with banks
On current accounts #	2,337 96	1,583.20
On saving accounts	1.64	1.33
On exchange earner's foreign currency accounts	259.20	208.57
On deposit accounts with original maturity less than three months	$\blacksquare$	625.79
On Escrow account**	378.95	$\blacksquare$
	2.977.99	2.419.30

Out of the cash and cash equivalent balance as at March 31, 2022, the Group can utilise ₹ 35,75 Million (Previous year: ₹ 154,39
Million) only towards certain predefined activities specified in the agreement.

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

Bank balances other than cash and cash equivalents

	As at	As at
	March 31, 2022	March 31, 2021
	In ₹ Million	In ₹ Million
Deposits with banks*	5.986 55	7.108.47
Add: Interest accrued but not due on deposits with banks	180.46	303.99
Deposits with banks (carried at amortised cost)	6.167.01	7.412.46
Less: Deposits with maturity more than twelve months from the balance sheet date disclosed under other non-current financial assets (refer note 9)	(3.19)	(24.42)
Less: Interest accrued but not due on non-current deposits with banks (refer note 9)	(0.17)	(1.34)
	6.163.65	7,386,70
Balances with banks on unpaid dividend accounts**	2.94	3.00
	6.166.59	7,389.70

* Of the balance, fixed deposits of ₹ 646.58 million (Previous year : ₹ 675.89 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 March 31, 2022 In ₹ Million	As at March 31, 2021 In ₹ Million
Carried at amortised cost
Loan to related parties (Unsecured, credit impaired) (refer note 33)
Klisma e-Services Private Limited		27.43
	ä,	$\frac{27}{43}$
Less: Write off / impairment		(27.43)
	÷,	$\blacksquare$
Loan to others (Unsecured, considered good)
LHS Solution Inc.	22.78	21.90
Interest accrued but not due at amortised cost	1.72	1.72
Less: Impairment	(24.50)	(23.62)
	$\blacksquare$

Other advances	16.10	21.79
	16.10	21.79
17. Other current financial assets

	As at	As at
	March 31, 2022	March 31, 2021
	In ₹ Million	In ₹ Million
Fair value of derivatives designated as hedging instruments Forward contracts receivable	84.59	294.46
Advances to related parties (Unsecured, credit impaired) (refer note 33)
Klisma e-Services Private Limited		0.81
Less: Write off / impairment		(0.81)
	ä,	ä,

Security deposits	÷	49.47
Unbilled revenue	3,130.31	2,172.77
	3,214.90	2,516,70

18 Other current assets
	As at	As at
	March 31, 2022	March 31, 2021
	In ₹ Million	In ₹ Million
Unsecured, considered good
Advances to suppliers
Advances recoverable in cash or kind or for value to be received	1,345 41	815.19
Excess fund balance with Life Insurance Corporation of India	42 19	113.08
Other advances
VAT receivable (net)	371	97 19
Service tax and GST receivable (net) (refer note 34 (a))	561 59	1,058.26
	565 30	1,155.45
	1,952.90	2,083.72

Notes forming part of Condensed Interim Consolidated Financial Statements

19. Non-current financial liabilities : Borrowings

	As at	As at
	March 31, 2022	March 31, 2021
	In ₹ Million	In ₹ Million
Borrowings carried at amortised cost
Term loans
Indian rupee loan from others	5.55	7.39
Interest accrued but not due on term loans	0.08	0.11
Foreign currency loan from others	4.319.72	38.73
	4.325.35	46.23
ess: Current maturity of long-term borrowings transferred to other current financial liabilitiesـ refer note 23)	(1.524.48)	(1.85)
ess: Current maturity of interest accrued but not due on term loan transferred to other current. inancial liabilities (refer note 23)	(0.08)	(0.11)
	(1.524.56)	(1.96)
	2.800.79	44 27

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

Loan I - amounting to ₹ 5.55 million (Corresponding period ₹ 7.41 million / Previous year ₹ 7.39 million) with Interest payable @ 3% per annum repayable in ten equal annual installments over a period of ten years commencing from October 2015.

Loan II - amounting to ₹ 37.54 million (Previous year ₹ 38.73). The interest free Ioan is given under a Covid-19 scheme for medium and small
scale Industries by the Government of Switzerland to a subsidiary company with a

Loan III - amounting to ₹ 4,282.18 million (Previous year:Nil). The Group has provided a Letter of Comfort to the Lendors.
Key terms are as below:

Repayment term	Rs. Million	Interest rate
Loan 1: Repayable over a period of 3 years in equal instalments commencing from November 12021		1,629 53 SOFR + 155 bps
Loan 2: Repayable over a period of 3 years in equal instalments commencing from April 2022		2.652.65 SOFR + 145 bps
	4.282.18

20 Lease liabilities

	As at	As at
	March 31, 2022	March 31, 2021
	In ₹ Million	In ₹ Million
Lease liabilities	1,456 87	938.17
Less: Current portion of lease liabilities	(342.58)	(222.00)
	1,114.29	716.17
Movement of lease liabilities
	For the year ended
	March 31, 2022	March 31, 2021
	In ₹ Million	In ₹ Million
Opening balance	938.17	662 42
Additions	831.31	587.19
Deletions	(42.81)	(43.33)
Add: Interest recognised during the period/ year	84.06	57 53
Less: Payments made	(350.83)	(319.11)
Translation differences	(3.03)	(6.53)
Closing balance	1,456.87	938.17

Non current liabilities : Provisions

	As at	As at
	March 31, 2022	March 31, 2021
	In ₹ Million	In ₹ Million
Provision for employee benefits
- Long service awards	245.54	240 94
	245 54	240 94
22 Trade payables
	As at	As at
	March 31, 2022	March 31, 2021
	In ₹ Million	In ₹ Million
Trade payables
- Dues of micro and small enterprises	10.30	30.20
- Dues of creditors other than micro and small enterprises	4.288.41	2.703.24

4,298.71 2,733.44

Disclosure of payable to vendors as defined under the "Micro, Small and Medium Enterprise Development Act, 2006" is based on the Discipline of payable to ventuos as deined united the limit of the mation of such personalized perseptiment Acc, 2000 is based on the parent Company regarding the status of registration of such vendors under the said Act,

Other current financial liabilities

	As at	As at
	March 31, 2022	March 31, 2021
	In ₹ Million	In ₹ Million
Capital creditors	204.49	237.83
Accrued employee liabilities	144 61	127.50
Unpaid dividend*	2.94	3.00
Other liabilities	8.41	7.96
Payable to selling shareholders (refer note 44)	3.90175	11.92
Less: Non-current portion of Payable to Selling Shareholders	(2.088.60)	$\blacksquare$
	2,173.60	388 21

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

24 Other current liabilities

	As at March 31, 2022 In ₹ Million	As at March 31, 2021 In ₹ Million
Unearned revenue	978.32	966.07
Advance from customers	43.21	93.67
Other payables
- Statutory liabilities	491.79	296.20
- Other liabilities*	58.40	159.01
	1,571.72	1,514 95

*Includes balance of ₹ 35.64 million (Previous year: ₹ 154.16 million ) to be utilised against certain predefined activities specified in the
agreement.

25. Current liabilities : Provisions

	As at March 31, 2022 In ₹ Million	As at March 31, 2021
		In ₹ Million
Provision for employee benefits
- Gratuity	9.96	37.78
- Leave encashment	975.49	815.28
- Long service awards	24.54	17.19
- Other employee benefits	2.939.67	1,607.54
	3,949.66	2,477.79

Revenue from operations (net)

		For the quarter ended		For the year ended
	March 31, 2022 In ₹ Million	March 31, 2021 In ₹ Million	March 31, 2022 In ₹ Million	March 31, 2021 In $\bar{\tau}$ Million
Software services	15.988.45	10.788.82	55,721.12	40.158.83
Software licenses	390.09	344.76	1.386.34	1.720.05
	16,378.54	11.133.58	57,107.46	41,878.88

27. Other income

	For the quarter ended		For the year ended
	March 31, 2022 In ₹ Million	March 31, 2021 In ₹ Million	March 31, 2022 In ₹ Million	March 31, 2021 In $\bar{\tau}$ Million
Interest income
On deposits carried at amortised cost	72.10	111 99	315.69	388.77
On Others	105.27	43.39	284 53	169.93
Foreign exchange gain/ (loss) (net)	120.16	173.77	269 41	33 81
Profit /(Loss) on sale of property, plant and equipment (net)	7.44	(5.75)	12.45	1 34
Net profit on sale/ fair valuation of financial assets designated as FVTPL	58.47	60.60	354 30	346.74
Excess provision in respect of earlier years written back	23.24	12.56	66.00	41.79
Miscellaneous income	34.05	3.80	137 17	95 34
	420.73	400.36	1,439.55	1,077.72

28. Personnel expenses

	For the quarter ended		For the year ended
	March 31, 2022	March 31, 2021	March 31, 2022	March 31, 2021
	In ₹ Million	In ₹ Million	In ₹ Million	In ₹ Million
28.1 Employee benefits expense
Salaries, wages and bonus	8,955 01	6,177.85	31.061.63	22,852.56
Contribution to provident and other funds	644 75	45549	2.059.54	528.58
Staff welfare and benefits	167.73	173.77	521.70	486.41
Share based payments to employees	306 18	46.79	950 23	290 44
	10.073.67	6.853.90	34,593.10	25,157.99
28.2 Cost of professionals	2.139.15	1.543.13	7.974.18	5.563.68
	12,212.82	8.397.03	42,567.28	30,721.67

Other expenses

		For the quarter ended	For the year ended
	March 31, 2022	March 31, 2021	March 31, 2022	March 31, 2021
	In ₹ Million	In ₹ Million	In ₹ Million	In ₹ Million
Travelling and conveyance	117.40	29.60	412.04	173.62
Electricity expenses (net)	18.42	20.24	76.07	82.58
Internet link expenses	15.90	15.24	68.59	70.86
Communication expenses	22.20	12.95	87.05	102.18
Recruitment expenses	127.04	31.63	428.06	135.10
Training and seminars	55.94	8.58	119.58	57.36
Royalty expenses	26.03	41 07	92.54	94.83
Purchase of software licenses	405.08	329.96	1,606.97	1.855 62
Bad debts	65.27	4.78	65.27	90.30
Allowance for expected credit loss (net)	(90.96)	(0.05)	(105.06)	31.32
Rent	26.80	33.68	101.88	140.89
Insurance	13.32	10.52	50.34	40.01
Rates and taxes	30.58	15.11	99.30	87.86
Legal and professional fees	288.06	139.46	828.48	525.40
Repairs and maintenance
- Plant and machinery	46.16	30.82	141.71	113.88
- Buildings	6.78	4.68	20.46	21.63
- Others	7.02	1.74	26.96	18.69
Selling and marketing expenses	2.10	4.04	4.89	10.43
Advertisement, conference and sponsorship fees	13.03	41.57	85.67	140.01
Computer consumables	5.13	1.97	10.55	5 5 4
Auditors' remuneration	4.58	5.47	11.39	11.14
Corporate social responsibility expenditure	45.59	1.89	115.78	204.05
Books, memberships, subscriptions	8.58	4.47	32.90	20.66
Directors' sitting fees	1.28	1.18	7.43	4.84
Directors' commission	4.99	2.36	20.83	10.22
Impairment of loan		(0.13)	$\blacksquare$	23.96
Loss / Impairment of non current investments	(0.04)	(0.10)	148.40	18.53
Miscellaneous expenses	87.70	60 52	400.39	235.55
	1.353.98	853.25	4.958.47	4,327.06

30 Earnings per share

		For the quarter ended		For the year ended
		March 31, 2022	March 31, 2021	March 31, 2022	March 31, 2021
Numerator for Basic and Diluted EPS
Net Profit after tax (In ₹ Million)	(A)	2.009.90	1.377.59	6.903.86	4.506.77
Denominator for Basic EPS
Weighted average number of equity shares	(B)	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
Basic earnings per share of face value of ₹10 each (in ₹)	(A/B)	26.30	18.03	90.34	58.97
Diluted earnings per share of face value of ₹ 10 each (In ₹)	(A/C)	26.30	18.03	90.34	58.97
		For the quarter ended		For the year ended
		March 31, 2022	March 31, 2021	March 31, 2022	March 31, 2021
Number of shares considered as basic weighted average shares outstanding		76.425.000	76.425.000	76.425.000	76.425.000
Add: Effect of dilutive shares
Number of shares considered as weighted average shares and potential shares outstanding		76,425,000	76.425.000	76.425.000	76.425.000

31 Financial assets and liabilities

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

							In ₹ Million
Financial assets/ Financial liabilities		March 31, 2022			March 31, 2021		Fair value
	FVTPL	FVTOCI	Amortised Cost	EVTPL	FVTOCI	Amortised Cost	hierarchy*
Financial Assets:
Investments in equity instruments, preferred stock and convertible	162.01			183.48			Level ₃
notes
Investments in bonds			2,879 29			2,630.80
nvestments in mutual funds	5,183.33			' 181 94			evel 1
Loans			3,538.10			2179
Deposit with banks and financial institutions (net)			6,26742			7,412.46
Cash and cash equivalents (including unpaid dividend)			2,980 93			2,422.30
Trade receivables (net)			9,484 29			5,70897
Foreign exchange forward contracts		8459			294 46		evel ₂
Unbilled revenue			3,130.31			2,17277
Other non current financial assets			236.97			13476
Other current financial assets						49.47
Total Financial Assets	5,345.34	84.59	28.517.31	7.365.42	294.46	20,553.32
Financial Liabilities:
Borrowings (including accrued interest)			4,325 35			46.23
Trade payables			4,29871			2,733,44
Lease liabilities			456.87			938 17
Other financial liabilities (excluding borrowings)			4.262.20			388.21
Total Financial Liabilities			14,343 13			4,106.05

'Fair value hierarchy:

The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable and consists of the following three levels: Level 1 - Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 3 - Inputs are not based on observable market data (unobservable inputs). Fair values are determined in whole or in part using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data. In respect of 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 Level 2 — Inputs are other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

value within that range. The Group recognises such equity instruments at cost, which is considered as appropriate estimate of fair value.

32. 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 are:
a. Banking, Financial Services and Insurance (BFSI)
b. Healthcare & Life Sciences
c. Technology Companies and Emerging Verticals

Particulars			BFSI	Healthcare & Life Sciences	Technology Companies and Emerging Verticals	Total
Revenue	Quarter ended	March 31, 2022	5,321.19	3.371.70	7,685,65	16,378.54
	Quarter ended	March 31, 2021	3,158.04	2.054.64	5,920.90	11.133.58
	Year ended	March 31, 2022	18,063,65	11,842.75	27,201.06	57,107.46
	Year ended	March 31, 2021	12,857 05	8,104.24	20,917.59	41,878.88
dentifiable expense	Quarter ended	March 31, 2022	3,829.03	1,679.52	4,811.92	10,320.47
	Quarter ended	March 31, 2021	1,797.50	945.97	4.057.22	6,800.69
	Year ended	March 31, 2022	11,879.32	5,779.01	17,931.96	35,590.29
	Year ended	March 31, 2021	8,038.67	4,121.77	14,468.19	26,628.63
Seamental result	Quarter ended	March 31, 2022	1,492.16	1,692.18	2,873.73	6,058.07
	Quarter ended	March 31, 2021	1.360 54	1.108.67	1,863 68	4.332.89
	Year ended	March 31, 2022	6,184.33	6,063.74	9,269.10	21.517.17
	Year ended	March 31, 2021	4,818,38	3,982 47	6,449.40	15,250.25
Unallocable expenses	Quarter ended	March 31, 2022				3.806.97
	Quarter ended	March 31, 2021				2,884.47
	Year ended	March 31, 2022				13,713.93
	Year ended	March 31, 2021				10,233.54
Operating income	Quarter ended	March 31, 2022				2.251.10
	Quarter ended	March 31, 2021				1.448.42
	Year ended	March 31, 2022				7.803.24
	Year ended	March 31, 2021				5,016.71
Other income (net of expenses)	Quarter ended	March 31, 2022				420.73
	Quarter ended	March 31, 2021				400.36
	Year ended	March 31, 2022				1,439.55
	Year ended	March 31, 2021				1,077.72
Profit before taxes	Quarter ended	March 31, 2022				2.671.83
	Quarter ended	March 31, 2021				1,848.78
	Year ended	March 31, 2022				9.242.79
	Year ended	March 31, 2021				6.094.43
Tax expense	Quarter ended	March 31, 2022				661.93
	Quarter ended	March 31, 2021				471.19
	Year ended	March 31, 2022				2.338.93
	Year ended	March 31, 2021				1,587.66
Profit after tax	Quarter ended	March 31, 2022				2,009.90
	Quarter ended	March 31, 2021				1,377.59
	Year ended	March 31, 2022				6,903.86
	Year ended	March 31, 2021				4,506.77

						(In ₹ Million)
Particulars			BFSI	Healthcare & Life Sciences	Technology Companies and	Total
					Emerging Verticals

Segmental trade receivables (net)	As at	March 31, 2022	1.816.26	1.949.27	5,718.76	9.484 29
	As at	March 31, 2021	1,355.88	1,363.40	2,989.69	5,708.97
Seamental Unbilled revenue	As at	March 31, 2022	754.63	325.30	2.050.38	3.130.31
	l As at	March 31, 2021	594.57	162.29	1.415.91	2.172.77

Unallocated assets	As at	March 31, 2022				41,526.37
	l As at	March 31, 2021				28.773.50
Unallocated liabilities	l As at	March 31, 2022				54.140.97
	$\Delta$ e at	March 21, 2021				36 655 24

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

Segment information

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

						! Million) (In ₹
Particulars			ndia	North America	Rest of the World	Total
Revenue	Quarter ended	March 31, 2022	3.414.77	24.533.20	(11.569.43)	16.378.54
	Quarter ended	March 31, 2021	928.58	8,632.58	1,572.42	11,133.58
	Year ended	March 31, 2022	6.028.37	44,812.10	6.266.99	57,107.46
	Year ended	March 31, 2021	3.512.59	33.861.61	4.504.68	41.878.88

The revenue from individual customers in excess of ten percent of total revenue of the Group is ₹ 2,291.72 million for the quarter ended March 31, 2022 (Corresponding period: ₹ 2,961.67 million), Rs. 9,271 13 million for the year ended March 31, 2022 (Previous year : ₹ 12,146 55 million).

33 Related party transactions
Refer to 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.

	Notes forming part of Condensed Interim Consolidated Financial Statements
	34 Contingent liabilities		(In ₹ Million)
Sr. No		As at
		March 31, 2022	March 31, 2021
ଟ	Claims against the company not acknowledged as debt*
	Indirect tax matters
	ncipal Commissioner of Service Tax, Pune, for Service tax under import of services on reverse charge basis for the Financial Year 2014-15, the Parent Company has filed an appeal against the order passed Pune with the Hon'ble Central Excise and Service Tax Appellate Tribunal (i) In respect to the order passed by the Learned Prir by Learned Principal Commissioner of Service Tax, (CESTAT) on September 23, 2017	173.78	17378
	protest towards the demand and the same forms part of the GST receivable The Parent Company has paid ₹ 165.58 million under balance.
	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 eligible to claim credit/refund for the amount paid
	protest with interest of ₹ 41.03 million, the Parent Company has filed an application with Directorate General of Foreign Trade us periods amounting to ₹ 255.52 million, which have been refunded under (ii) In respect of export incentives pertaining to previou (DGFT)	29655	296.55
	and based on the consultations with subject matter specialists, the Parent Company believes that its position is most likely be upheld on ultimate resolution Based on the documents filed with relevant authorities
	(iii) Other Pending litigations in respect of Indirect taxes.	1353	2733
2	Income tax demands disputed in appellate proceedings	85502	478.70
ô	Guarantees and Letter of Comfort on behalf of Subsidiaries Guarantees given on behalf of subsidiaries	77078	1,109.08
$\sim$	Letters of comfort on behalf of subsidiary ( USD 60 Million (Previous year: Nil))	4,547 40

lesbeci to tue apove $\bar{1}$ $\frac{D}{2}$ $\frac{1}{2}$ canel years, pelle *The Parent Company, based on independent legal opinions and judgments in favour of the Parent Company in the r
matters is not likely to arise and therefore, no provision is considered necessary in the financial statements

Notes forming part of Condensed Interim Consolidated Financial Statements

35 Business Combination

The acquisition of the following 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%.

a) Update on Purchase price allocation of acquisiton of CAPIOT Group

During previous year ended March 31, 2021, the Group acquired 100% share capital of CAPIOT Software Private Limited, a company based in India, 100% share capital of CAPIOT Software Inc, a company based in USA, along with its wholly owned subsidiaries CAPIOT Software Pty Limited, a company based in Australia and CAPIOT Software Pte Limited, a company based in Singapore.

The acquisition of the said business was accounted for using the acquisition method of accounting on provisional basis availing the exemption under Ind AS 103. Following are the results after conclusion of purchase price allocation exercise:

The fair value amount of consideration paid/payable is ₹ 667.12 million (including deferred purchase consideration of ₹ 208.12 million.)

	(In ₹ Million)
Particulars	Total
Current Assets
Cash and & cash equivalents	30.90
Trade receivables	70.62
Other current assets	17175
Non-current assets
Property, Plant and Equipment	7.00
Deferred tax asset	0.11
Contractual rights	121.16
Goodwill	469.82
Current liabilities
Trade and other payables	119.95
Borrowings	84.29
Net assets	667 12

a) Entities acquisition

Persistent Systems Inc., a wholly owned Subsidiary of the Company acquired Software Corporation International LLC ("SCI") and its affiliate SCI Fusion360 LLC ("Fusion") (together referred to as "SCI Fusion Group"), on October 5, 2021.

SCI brings deep domain consulting capabilities specializing in Payment solutions, integration, and support services for an impressive portfolio of leading US Banks. Additionally, Fusion360 provides application development, maintenance, and support for leading Payment platforms including IBM's Financial Transaction Manager. These acquisitions enhance Persistent's capabilities and will serve as the foundation of a dedicated Payments business unit.

The fair value of amount of consideration is ₹ 3,388.17 million (including deferred purchase consideration of ₹ 792.37 million.)

Purchase price allocation :

Particulars	In ₹ Million
Current Assets
Cash and & cash equivalents	49.01
Trade receivables	201.62
Other current assets	15.81
Other current financial assets	4.55
Non-current assets
Property, Plant and Equipment	6.51
Acquired contratual rights	953.89
Non-compete rights	26.27
Goodwill	2,166.99
Subtotal	3,424.65
Current liabilities
Trade and other payables	36.48
Subtotal	36.48
Net assets taken over	3,388.17

$\Gamma$

Notes forming part of Condensed Interim Consolidated Financial Statements

Revenue of ₹ 560.61 million for the period ended March 31, 2022 is included in the financial statements. The profit included for the period ended March 31, 2022 is ₹ 64 96 million

Had the business combination been effected on April 1, 2021, the revenue for the year ended March 31, 2022 for the Company from the continuing operations would have been ₹ 57,717.07 million and the net profit for the year ended March 31, 2022 would have been ₹ 6,962.44 million.

c) Business acquisitions

a. Shree Infosoft Pvt. Ltd. and Shree Partners LLC

On November 18, 2021 the Parent Company has entered into an Agreement effecting business acquisition of Shree Infosoft Pvt. Ltd., India ('Shree Infosoft') on $(1)$ September 29, 2021 to acquire its customer relations together with the skilled employees and processes.

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

After the acquisition of business, the Group does not hold any equity interest in Shree Infosoft and Shree Partners. The acquisition will strengthen the Group's presence in innovative cloud, infrastructure and solutions in artificial intelligence and machine learning. Its acquisiton will help the Group meet the growing needs of its clients and it also add a new point of presence in NCR, India, additional industry capabilities.

(2) 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.

The fair value of amount of consideration paid/payable recognised on provisional basis is ₹ 491.97 million (including deferred purchase consideration of ₹ 198.45 million.)

(3) Based on provisional purchase price allocation exercise, the Group has recognised the following assets:
Particulars	In ₹ Million
Non-current assets

197

483 27

485.24

*Based on provisional purchase price allocation, the Group has recognised the provisional intangible assets represented by contractual rights amounting to ₹ 245.44 millic and goodwill amounting to ₹ 237 83 million

b. Data Glove Group

Total assets

Property, Plant and Equipment

Provisional intangible assets*

On March 1, 2022 the Group acquired businesses from Data Glove IT Solutions Private Ltd, India, Data Glove Inc., USA and its affiliate entities based out of Australia, $(1)$ UK, Singapore and Costa Rica (together referred to as "Data Glove Group"). The Data Glove Group businesses comprise of Microsoft Cloud Modernization Services Partnership with Gold level competencies in Azure Cloud Platform, Data Center, Application Development and Data Analytics, Application Integration. After the acquisition of business, the Group does not hold any equity interest except in Data Glove IT Solutions Limitada. This acquisition will help the Group enhance its partnership and expand expertise in Azure-based digital transformation, enabling it to capture a larger share of this high growth market. This acquisition also broadens the Group's delivery capabilities with highly skilled talent, establishing a new nearshore delivery center in Costa Rica and expanding its presence in the US and India.
(2) 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 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 1 which provides the Group a period of twelve months from the acquisition date for completing the accounting of purchase price allocation on provisional basis.

The fair value of amount of consideration paid/payable recognised on provisional basis is ₹6,182.36 million (including deferred purchase consideration of ₹2,364.09 milli

(3) Based on provisional purchase price allocation exercise, the Group has recognised the following assets:

Particulars	In ₹ Million
Current Assets
Cash and & cash equivalents	12 06
Trade receivables	19.67
Other current assets	0.08
Other current financial assets	34.30
Non-current assets
Property, Plant and Equipment	5.04
Provisional intangible assets*	6.168.47
Subtotal	6.239.62
Current liabilities
Trade and other pavables	57.25
Subtotal	57 25
Net assets taken over	6.182.37

Notes forming part of Condensed Interim Consolidated Financial Statements

*Based on provisional purchase price allocation, the Group has recognised the provisional intangible assets represented by contractual rights amounting to ₹3,061.98 million and goodwill amounting to ₹ 3,106.49 million.

36 The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the company towards Provident Fund and Gratuity. The Ministry of Labour and Employment has released draft rules for the Code on Social Security, 2020 on November 13, 2020, and has invited suggestions from stakeholders which are under active consideration by the Ministry. The Group will assess the impact and its evaluation once the subject rules are notified and will give appropriate impact in its financial statements in the period in which the Code becomes effective and the related rules to determine the financial impact are published.
37 Finance costs include interest on lease liability of ₹ 84.06 million under finance costs (Previous year ₹ 57.53 million) and notional interest on amounts due to selling shareholders ₹ 15.73 million (Previous year: Nil).
38 The Parent Company has deposits of ₹ 430 million with the financial institutions viz. Infrastructure Leasing & Financial Services Ltd. (IL&FS) and IL&FS Financial Services Ltd. (referred to as "IL&FS Group") as on the balance sheet date. 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 Parent 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 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.

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

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

Digitally signed by SHASHI SHASHI TADWALKAR TADWALKAR Date: 2022.04.27

Shashi Tadwalkar

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

nand Deshpande

Dr. Anand Deshpande Chairman and Managing Director DIN: 00005721

Place: Pune Date: April 27, 2022 Executive Director and Chief Executive Officer DIN: 02506494

Amit Atre

Atre (Apr 27, 2022 18:05 GMT+5.5)

Place: Pune Date: April 27, 2022

Sandeep Kalra

Place: Pune Date: April 27, 2022

Sunil Sapre Sapre (Apr 27, 2022 18:30 GMT+5.5)

Sunil Sapre Executive Director and Chief Financial Officer DIN: 06475949

Place: Pune Date: April 27, 2022

Company Secretary Membership No. A20507

Amit Atre

Place: Pune Date: April 27, 2022

Praveen Kadle Independent Director

DIN: 00016814

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 year ended 31 March 2022

To the Members 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 31 March 2022, the Condensed Interim Statement of Profit and Loss (including Other Comprehensive Income) for the quarter and year then ended, the Condensed Statement of Cash Flow and the Condensed Statement of Changes in Equity for the year ended 31 March 2022, 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, 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 31 March 2022, and its profit (including other comprehensive income) for the quarter and year then ended, its cash flows and the changes in equity for the year ended 31 March 2022.

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

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

Circle, New Delhi, 110001, India

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

Chartered Accountants

Responsibilities of Management and Those Charged with Governance for the 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;
x Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management;

Page 2 of 3

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

Chartered Accountants

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: 2022.04.27 22:27:36 +05'30'

Shashi Tadwalkar Partner

Membership No:101797

UDIN:22101797AHXPFB7947

Place: Pune Date: 27 April 2022

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

	Notes	As at March 31, 2022 In ₹ Million	As at March 31, 2021 In ₹ Million
ASSETS
Non-current assets
Property, plant and equipment	5.1	2.733.61	2,270.24
Capital work in progress		1,071.02	112.33
Right of use assets	5.2	671 63	314 62
Other intangible assets	5.3	780.73	171.65
		5,256.99	2,868.84
Financial assets
- Investments	6	8,734.81	7,779.54
- Loans	7	3,943.68
- Other non current financial assets	8	226.68	77.99
Deferred tax assets (net)	9	266.72 557.98	245 74
Other non-current assets	10	18,986.86	419.73 11,391.84

Current assets Financial assets
- Investments	11	4,346.91	6,374.95
- Trade receivables (net)	12	4,426.84	2,966.26
- Cash and cash equivalents	13	563.67	862.72
- Bank balances other than cash and cash equivalents	14	6,038.02	7,387.00
- Loans	15	÷,
- Other current financial assets	16	3,708.73	2,113.12
Other current assets	17	1,371.26	1,656 93
		20,455.43	21,360.98
TOTAL		39,442.29	32,752.82
EQUITY AND LIABILITIES
EQUITY

Equity share capital Other equity	4	764.25 32.424.60	764 25 26,890.99
		33,188.85	27,655.24

LIABILITIES
Non-current liabilities Financial liabilities
	18	3.70	5.54
Borrowings	19		304 72
- Lease liabilities Provisions	20	611.75 245.54	240.94
		860.99	551.20

Current liabilities
Financial liabilities
- Borrowings - Lease liabilities	18 19	1.93 146.51	1.96 73.82
- Trade payables	21
-Dues of micro enterprises and small enterprises		10.30	30.20
-Dues of creditors other than micro enterprises and small enterprises		844.68	908 20
- Other financial liabilities	22	366.88	395 46
Other current liabilities	23	1,509.04	1,679.01
Provisions	24	2,269 73	1.145.59
Current tax liabilities (net)		243.38	312.14
		5.392.45	4,546.38
TOTAL		39,442.29	32,752.82
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	Persistent Systems Limited
Firm Registration No: 001076N/N500013

Digitally signed by	Sandeep Kalra (Apr $\rlap{\,/}{\mathcal{U}}$ 1, 2022 18:06 GMT+5.5)
SHASHI SHASHI TADWALKAR Anand Destrpande
TADWALKAR Date: 2022.04.27 22:27:57 +05'30"
Shashi Tadwalkar	Dr. Anand Deshpande	Sandeep Kaira	Praveen Kadle
Partner	Chairman and Managing	Executive Director and	ndependent Director
	Director	Chief Executive Officer
Membership No.: 101797	DIN: 00005721	DIN: 02506494	DIN: 00016814
	Place: Pune	Place: Pune	Place: Pune
	Date: April 27, 2022	Date: April 27, 2022	Date: April 27, 2022

SUNIL SAPYE Sunil Sapre (Apr 27, 2022 17:19 GMT+5.5)
	Sunil Sapre	Amit Atre	2022 17:05 GMT+5.5)
	Executive Director and	Company Secretary

DIN: 06475949 Place: Pune
Date : April 27, 2022 Place: Pune
Date : April 27, 2022 Place: Pune
Date : April 27, 2022

Membership No. A20507

Digitally signed by
SHASHI SHASHI
TADWALKA TADWALKAR Date: 2022.04.27 22:28:12 +05'30'

Persistent Systems Limited Statement FOR YEAR ENDED MARCH 31, 2022

		For the year ended
		March 31, 2022	March 31, 2021
		In ₹ Million	In ₹ Million
Cash flows from operating activities
Profit before tax		9,120.61	6,680.20
Adjustments for:
Interest income		(593.58)	(548.82)
Finance cost		68.78	38.21
Dividend income		(53.16)	(131.45)
Depreciation and amortization expense		837.57	566.79
Unrealised exchange loss (net)		26.38	151.02
Exchange loss / (gain) on derivative contracts		79.38	(169.80)
Exchange loss on translation of foreign currency cash and cash equivalents		0.29	23.15
Bad debts		12.12	46.96
Change in provision for expected credit loss (net) Employee stock compensation expenses		(29.97) 739.52	(20.20) 236.33
Remeasurements of the defined benefit liabilities / assets (before tax effects)		(190.82)	15.93
Excess provision in respect of earlier years written back		(15.53)
Profit on sale/ fair valuation of financial assets designated as FVTPL		(338, 78)	(344.43)
(Profit) / loss on sale of Property, Plant and Equipment (net)		(12.31)	8.10
Operating profit before working capital changes		9,650.50	6.551.99
Movements in working capital:
Increase in other non current assets		(40.48)	(78, 73)
(Increase) / Decrease in other non current financial assets		(70.68)	37.02
(Increase) / Decrease in other current financial assets		(1,594.52)	363.88
Decrease/ (Increase) in other current assets		285.67	(171.56)
Increase in trade receivables		(1,470.96)	(312.65)
Increase in trade payables, current liabilities and non current liabilities		273.76	1,059.46
Increase in provisions		1,144 27	613.36
Operating profit after working capital changes		8,177.56	8,062.77
Direct taxes paid (net of refunds)		(2,318.85)	(1,494.81)
Net cash generated from operating activities	(A)	5,858.71	6,567.96
Cash flows from investing activities
Payment towards capital expenditure (including intangible assets, capital advances and capital		(2,728.84)	(707.24)
creditors)
Acquisition assets through business combination		(628.87)
Proceeds from sale of Property, Plant and Equipment		13.19	4.13
Investment in wholly owned subsidiaries		(645.52)	(376.61)
Loan to ESOP trust		(3,522.00)
Purchase of bonds		(711.90)	(712, 18)
Proceeds from sale of bonds Investments in mutual funds		499.95 (33, 456, 80)	350.53 (24.591.91)
Proceeds from sale / maturity of mutual funds		35,762.24	25.068.92
Maturity / (Investments) in bank deposits having original maturity over three months		1,249.81	(4,464,82)
Investment in deposit with financial institutions		(100.00)	$\overline{a}$
Inter corporate deposits given to wholly owned subsidiary		(419.59)
Interest received		709.07	359.89
Dividend received		53.16	131.45
Net cash used in investing activities	(B)	(3,926,10)	(4,937.84)

Cash flows from financing activities
Repayment of long term borrowings		(1.84)	(4.54)
Specific project related grant received			9.00
Payment of lease liabilities		(173.67)	(173.11)
Dividend paid		(1,987.05) (68.81)	(1,069.95) (38.28)
Interest paid	(C)	(2, 231.37)	(1, 276.88)
Net cash used in financing activities

CONDENSED INTERIM CASH FLOW STATEMENT FOR YEAR ENDED MARCH 31, 2022

	For the year ended
	March 31, 2022	March 31, 2021
	In ₹ Million	In ₹ Million
Net (decrease)/ increase in cash and cash equivalents $(A + B + C)$	(298, 76)	353 24
Cash and cash equivalents at the beginning of the year	862.72	532.63
Effect of exchange differences on translation of foreign currency cash and cash equivalents	(0.29)	(23.15)
Cash and cash equivalents at the end of the period/ year	563.67	862.72

Components of cash and cash equivalents
Cash on hand (refer note 13)	0.09	0.10
Balances with banks
On current accounts # (refer note 13)	302 74	360.22
On saving accounts (refer note 13)	1.64	1.33
On deposit account with maturity of less than three months (Refer note 13)		292.50
On exchange earner's foreign currency accounts (refer note 13)	259.20	208.57
Cash and cash equivalents	563.67	862.72

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

Summary of significant accounting policies - Refer note 3

Sunil Sapre

Sunil Sapre (Apr 27, 2022 17:19 GMT+5.5)

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

$\left.\begin{array}{l|l|l} \text{SHASH} & \text{Digitally signed by} \ \text{ThOWALK} & \text{ThOWALK} \ \text{The 2022.04.27} \ \text{AR} & \text{222.28.29 + 05'30'} \end{array}\right.$ Anand Destrpande

Shashi Tadwalkar

Partner

Membership No.: 101797

For and on behalf of the Board of Directors of Persistent Systems Limited Sandee Kalra s 2022 18:06 GMT+5.5) deen Kalra (Anr.

may

Praveen Kadle Independent Director

Place: Pune Date: April 27, 2022

DIN: 00016814

Place: Pune Date: April 27, 2022

Executive Director and

Chief Financial Officer DIN: 06475949

Dr. Anand Deshpande

Chairman and

DIN: 00005721

Sunil Sapre

Managing Director

Place: Pune Date: April 27, 2022

Amit Atre

Sandeep Kalra

DIN: 02506494

Executive Director and

Chief Executive Officer

Amit Atre (Apr 27, 2022 17:05 GMT+5.5) Amit Atre Company Secretary

Place: Pune Date: April 27, 2022 Place: Pune Date: April 27, 2022

Place: Pune Date: April 27, 2022

Membership No. A20507

Persistent Systems Limited
CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY FOR YEAR ENDED MARCH 31, 2022

A. Equity share capital
(Refer note 4)

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

764.25		764.25

(In ₹ Million)

		uu vuunvu
Balance as at April 1, 2020	Changes in equity share capital during the year	Balance as at March 31, 2021

764.25		764.25

Persistent Systems Limited
CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY FOR YEAR ENDED MARCH 31, 2022

B. Other equity

							(In ₹ Million)
Particulars				Reserves and surplus		tems of other comprehensive income	Total
	General reserve	Share options	Capital	Special economic zone re-	Retained earnings	Effective portion of
		outstanding	redemption	investment reserve		cash flow hedges
		reserve	reserve
Balance as at April 1, 2021	14.356 35	471.20	35.75	. .	11.888.23	139.46	26,890.99
Profit for the period					6,858.66		6,858.66
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

							(In ₹ Million)
				Reserves and surplus		ttems of other comprehensive income	Total
Particulars	General reserve	Share options outstanding	Capital redemption	Special economic zone re- investment reserve	Retained earnings	Effective portion of cash flow hedges
		reserve	reserve
Balance as at April 1, 2020	12,227.23	290.51	35.75	49.95	9,861.78	(244.09)	22.221.13
Profit for the period				۰	5,050.86		5,050.86
Other comprehensive income for the year				۰.	15 93	383.55	399.48
Dividend					(1,069,95)		(1,069.95)
Transfer to retained earnings				(49.95)	49.95
Transfer to general reserve	2.020 34			۰	(2,020.34)
Adjustments towards employees stock options	108.78	(108.78)		۰
Employee stock compensation expenses		236.33		-			236.33
Employee stock compensation expenses of subsidiaries		53.14		-			53.14
Balance as at March 31, 2021	14.356.35	471.20	35.75	$\blacksquare$	11.888.23	139.46	26,890.99

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 Anand Deshpande Digitally signed by SHASHI
TADWALKAR SHASHI TADWALKAR Date: 2022.04.27 22:28:46 Shashi Tadwalkar

For and on behalf of the Board of Directors of Persistent Systems Limited Sandeep Kalra $\epsilon$ 2022 18:06 GMT+5 5

Dr. Anand Deshpande Chairman and Managing Director Executive Director and Chief Independent Director
Executive Officer

DIN: 00005721

Praveen Kadle Sandeep Kalra

may

Place: Pune Date: April 27, 2022

Amit Atre (Apr 27, 2022 17:05 GMT+5.5)

Sunil Sapre

Executive Director and
Chief Financial Officer Company Secretary

Membership No. A20507

Date : April 27, 2022

Amit Atre

Place: Pune Date: April 27, 2022

Membership No.: 101797

Partner

Place: Pune Date: April 27, 2022

Sunil Sapre
Sunil Sapre (Apr 27, 2022 17:19 GMT+5.5)

Place: Pune

DIN: 06475949

Place: Pune Date: April 27, 2022

Date: April 27, 2022 Amit Atre

DIN: 02506494 DIN: 00016814 Place: Pune

CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED MARCH 31, 2022

Nature and purpose of reserves

a) General reserve

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) Special Economic Zone re-investment reserve

The Special Economic Zone re-investment reserve is 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 Company for acquiring new plant and machinery for the purpose of its business in accordance with Section 10AA(2) of the Income tax Act, 1961.

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

Nature of operations $\mathbf{1}$

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 year ended March 31, 2022 and authorised for issue on April 27, 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.

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, 2015, and quidelines 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

$2.2$ Compliance with Ind AS

These condensed interm financial statements are prepared in accordance with Indian Accounting Standard (Ind AS), the provisions of the Companies Act, 2013 ("the Act") (to the extent notified) and guidelines issued by the Securities and Exchange Board of India (SEBI). The Ind AS are prescribed under Section 133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and relevant amendment rules issued thereafter

23 New and amended standards adopted by the Company

The Company has applied the following amendment to Ind AS for the first time in it's annual reporting period commencing 1 April 2021:

-Extension of COVID-19 related concessions - amendments to Ind AS 116

-Interest rate benchmark reform - amendments to Ind AS 109. Financial Instruments, Ind AS 107. Financial Instruments: Disclosures, Ind AS 104, Insurance Contracts and Ind AS 116, Leases.

The amendments listed above did not have any impact on the amounts recognised in prior periods and are not expected to significantly affect the current or future periods.

$\mathbf{2.4}$ New amendments issued but not effective

Reclassifications consequent to amendments to Schedule III $2.5$

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

The company 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)	March 31, 2021 (Previously Reported)	Increase / (Decrease)	March 31, 2021 (Restated)
Non-current assets
Loans	52.23	(52.23)	£.
Other non-current financial assets	25.76	52.23	77.99
Current assets
Loans	49.33	(49.33)	高
Other current financial assets	2,063.79	49.33	2.113.12
Current liabilities
Other financial liabilities	397.42	(1.96)	395.46
Borrowings		1.96	1.96

Notes forming part of Condensed Interim Financial Statements

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

$3.1$ 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 li .
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 Management 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 discl to the condensed interm financial statements.

Estimation of uncertainties relating to the global health pandemic from COVID-19: $3.2$

The Company has considered all possible impacts of COVID-19 in the preparation of these condensed interm financial statements, including but not limited to its assessment of, liquidity and going concern assumption, recoverable values of its financial and non-financial assets, impact on revenue recognition owing to changes in cost budgets of fixed price contracts,
impact on leases, impact on effectiveness of its hedges and impact on the recoverable amount of g has carried out this assessment based on available internal and external sources of information up to the date of approval of these financial statements and believes that the impact of COVID-19 is not material to these financial statements and
expects to recover the carrying amount of its assets. The impact of COVID-19 on the condensed interm statements may differ from that estimated as at the date of approval of these condensed interm financial statements owing to the nature and duration of COVID-19.

$3.3$ 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 p 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 progr 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 availabilit 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 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 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 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.

$3.4$ 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

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 o obligations and borrowing costs for long term construction projects if the recognition criteria are met. Any trade discounts and rebates are deducted in arriving at the purchase price.

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 re 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.

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:

Assers	USETUI IIVES
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.

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.

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.

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 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 optio ease.

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 pretax 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 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 - "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. 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 obliga 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 valu 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

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 signifi 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

j) 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

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

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 comprehensive income in the reporting period in which they occur. Remeasurements are not reclassified to profit and loss subsequently.

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 basi other contributions payable other than contribution payable to the respective fund.

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 non-
accumulating 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 Compan 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.

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

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)

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 potential equity shares.

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 exp Company's best estimate of the number of equity instruments that will ultimately vest.

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

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

s) Equity

t) 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.

u) 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.

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.

v 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

Share Capital

	As at March 31, 2022 In ₹ Million	As at March 31, 2021 In ₹ Million
Authorized shares (No. in million)
200 (Previous year:200) equity shares of ₹10 each	2,000.00	2,000.00
	2,000.00	2,000.00
Issued, subscribed and fully paid-up shares (No. in million)
76.43 (Previous year: 76.43) equity shares of ₹10 each	764.25	764.25
Issued, subscribed and fully paid-up share capital	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)
		As at	As at
		March 31, 2022	March 31, 2021
	No of Shares	Amount ₹	No of Shares	Amount ₹
Number of shares at the beginning of the year	76 43	764 25	76.43	764.25
Less: Changes during the year
Number of shares at the end of the year	76.43	764 25	76.43	764.25

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 proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting

The Board of Directors of Persistent Systems Limited, at its meeting held on January 20, 2022, declared an interim dividend of INR 20 per equity share of face value of INR 10 each for the Financial Year 2021-22.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders. However, no such prefrential amounts exist currently.

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

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

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

Name of the shareholder*	As at		As at
	March 31, 2022		March 31, 2021
	No. in million	% Holdina	No. in million	% Holding
Dr. Anand Deshpande and Mrs. Sonali Anand Deshpande	22.97	30.06	22.96	30.04
Schemes of HDFC Mutual Fund	345	4.51	5.37	7.03

* 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.

5.1 Property, plant and equipment									(In ₹ Million)
	Freehold ng an		Buildings* Computers	equipments Office	equipment Plant and	improvements Leasehold	Furniture and fixtures	Vehicles	Total
Gross block (at cost)	20692	2,38773	2,331.29	5784	1,407.04	2079	52732		6,946.17
As at April 1, 2021 Additions		1.35	95288	3.95	7238		61.66	$\frac{73}{9}$ 3	1,092.25
Refer Additions through business combination ( note 33)			1,70	0.08	0.19		ï		1.97
Disposals			11.96	387	90.21		31.14	ı	13718
As at March 31, 2022	206.92	2,389.08	3,273.91	58.00	1,389.40	2079	55784	727	7,903.21
Accumulated depreciation
As at April 1, 2021		1,15749	1,73290	51.75	1,215.65	2019	49297	4.98	4,675.93
Charge for the period		9638	435.14	293	5470	0.60	39.25	0.97	62997
Disposals			11.65	3.87	90.05		3073		136.30
As at March 31, 2022		1,253.87	2,156.39	50.81	1,180.30	2079	501.49	5.95	5,169.60
As at March 31, 2022 Net block	20692	1,135.21	1,117.52	719	209.10		56.35	132	2,733.61
As at March 31, 2021	206.92	1,230.24	598.39	6.09	19139	0.60	34.35	2.26	2,270.24
5.2 Right of use assets									(In ₹ Million)
							Office premises Leasehold land		Total
Gross block (at cost) As at April 1, 2021								3750	480.67
Additions							443 17 495 78		49578

Accumulated depreciation
As at April 1, 2021

Charge for the period

Disposals

As at March 31, 2022

Net block

As at March 31, 2021

As at March 31, 2022

Disposals

$\frac{67162}{31462}$

$\frac{35}{36}$ 32

$\frac{635.89}{278.30}$

$\frac{13068}{845.77}$

37.50

130.68

808.27

166 05
127 79 $\frac{119.70}{174.14}$

$18$
0.58

$\begin{array}{c} 164 & 87 \ 127 & 21 \ 19 & 70 \end{array}$

$\frac{15}{2}$

$172.38$

* Note: Building includes those constructed on leasehold land:
a) Gross block as on March 31, 2022 ₹ 1,455,94 million (Previous year ₹ 1,454,60 million)
b) Depreciation charge for the year ₹ 59.07 million (Previous year ₹

Notes forming part of Condensed Interim Financial Statements

5.1 Property, plant and equipment

.									(In ₹ Million)
	Freehold land	Buildings	Computers	Office equipments	Plant and equipment	Leasehold improvements	Furniture and fixtures	Vehicles	Total
Gross block (at cost)
As at April 1, 2020	206.92	2.387.06	1.851.34	53.58	1.377.38	21.12	521.31	7.24	6.425.95
Additions		0.67	536 13	6.28	55.45	۰	33.50	۰.	632.03
Disposals		$\qquad \qquad \blacksquare$	56.18	2.02	25.79	0.33	27.49	$\blacksquare$	111.81
As at March 31, 2021	206.92	2,387.73	2,331.29	57.84	1,407.04	20.79	527.32	7.24	6,946.17
Accumulated depreciation
As at April 1, 2020	$\blacksquare$	1,061.11	1.548.74	50 93	1,190.54	19.32	502.49	4.05	4,377,18
Charge for the year		96.38	228.33	2.84	50.87	1.12	17.86	0.93	398 33
Disposals		۰	44.17	2.02	25.76	0.25	27.38	۰	99 58
As at March 31, 2021	۰.	1.157.49	1,732.90	51.75	1,215.65	20.19	492.97	4.98	4,675.93
Net block
As at March 31, 2021	206.92	1,230.24	598.39	6.09	191.39	0.60	34.35	2.26	2,270.24
As at March 31, 2020	206.92	1,325.95	302.60	2.65	186.84	1.80	18.82	3.19	2,048.77

Notes forming part of Condensed Interim Financial Statements

5.2 Right of use assets

			(In ₹ Million)
	Office premises	Leasehold land	Total
Gross block (at cost)
As at April 1, 2020	358.91	37.50	396.41
Additions	176.95		176.95
Disposals	92.69		92.69
As at March 31, 2021	443.17	37.50	480.67
Accumulated depreciation
As at April 1, 2020	126.41	0.60	127.01
Charge for the year	111.12	0.58	111.70
Disposals	72.66		72.66
As at March 31, 2021	164.87	1.18	166.05
Net block
As at March 31, 2021	278.30	36.32	314 62
As at March 31, 2020	232.50	36.90	269.40

5.3 Other intangible assets

				(In ₹ Million)
	Software	Acquired contractual	Provisional Intangible	Total
		rights	Assets
Gross block
As at April 1, 2021	925.11	261.74	$\blacksquare$	1,186.85
Additions	61.99			61.99
Addition through business combination (Refer note 33)			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		1,015.20
Charge for the period	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
As at March 31, 2021	171.65			171.65

			(In ₹ Million)
	Software	Acquired contractual	Total
		rights
Gross block
As at April 1, 2020	743 67	26174	1.005.41
Additions	181.44		181.44
As at March 31, 2021	925.11	261.74	1,186.85
Accumulated amortization
As at April 1, 2020	696.70	261.74	958.44
Charge for the year	56.76	$\blacksquare$	56.76
As at March 31, 2021	753.46	261.74	1,015.20
Net block
As at March 31, 2021	171.65		171.65
As at March 31, 2020	46.97		46.97

5.4 Depreciation and amortization expense

			(In ₹ Million)
	For the quarter ended		For the year ended
	March 31, 2022	March 31, 2021	March 31, 2022	March 31, 2021
On Property, plant and equipment	196.57	113.58	629.97	398.33
On Right of use assets	35.62	26.64	127.79	111.70
On Other intangible assets	26.15	15.30	79.81	56.76
	258.34	155.52	837.57	566.79

Notes forming part of Condensed Interim Financial Statements

6. Non-current financial assets : Investments

.	As at March 31, 2022 In ₹ Million	As at March 31, 2021 In ₹ Million
Investments carried at cost
Unquoted investments
Investments in equity instruments - In wholly owned subsidiary companies (Refer note 31) Persistent Systems, Inc.
482 million (Previous year: 402 million) shares of USD 0.10 each, fully paid up	3,048.26	2,478.01
Persistent Systems Pte Ltd. 0.50 million (Previous year: 0.50 million) shares of SGD 1 each, fully paid up	15.50	15.50
Persistent Systems France SAS 1.50 million (Previous year: 1.50 million) shares of EUR 1 each, fully paid up	97.47	97.47
Persistent Systems Malaysia Sdn. Bhd. 5.45 million (Previous year: 5.45 million) shares of MYR 1 each, fully paid up	102.25	102.25
Persistent Systems Germany GmbH 11.6527 million (Previous year: 11.6527 million) shares of EUR 1 each, fully paid up	1,265.91	1,265.91
CAPIOT Software Private Limited 0.1867 million (Previous year: 0.1867) shares of Rs. 10 each, fully paid up	483.71	376,61
- In associates Klisma e-Services Private Limited [Holding Nil (Previous year: 50%)] #
Nil (Previous year : 0,005 million) shares of ₹ 10 each, fully paid up		0.05
Less : Impairment	ä,	(0.05) ٠

Total investments carried at cost (A)	5,013.10	4,335.75
Investments carried at amortised cost Quoted investments
In bonds	2,801.81	2,557.92
[Market value ₹ 2,863 32 million (Previous year ₹2,727 32 million)] Add: Interest accrued on bonds	77.48	72.88
Total investments carried at amortised cost (B)	2,879.29	2,630.80
Designated as fair value through profit and loss
Unquoted investments - Investments in mutual funds
Fair value of long term mutual funds (Refer Note 6 (a))	836.42	806.99
	836.42	806.99
Unquoted investments
-Others*
Altizon Systems Private Limited
3,766 equity shares (Previous year : 3,766 equity shares) of ₹ 10 each, fully paid up	6.00	6.00
	6.00	6.00
Total investments carried at fair value (C)	842 42	81299
Total investments $(A) + (B) + (C)$	8,734.81	7,779 54
Aggregate provision for diminution in value of investments		0.05
Aggregate amount of quoted investments	2,879.29	2,630.80
Aggregate amount of unquoted investments	5,855.52	5,148.79

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.

* 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

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

	As at	As at
	March 31, 2022	March 31, 2021
	In ₹ Million	In ₹ Million
Axis mutual fund	471.15	400.50
IDFC mutual fund	365.27	370.31
Sundaram mutual fund	$\blacksquare$	36.18
	836.42	806.99

7. Non-current financial assets : Loans

	As at	As at
	March 31, 2022	March 31, 2021
	In ₹ Million	In ₹ Million
Carried at amortised cost
Loan to related parties
- Persistent Systems Germany GmbH	420.67
Add: Interest accrued but not due on loan	1.01
	421.68	$\blacksquare$
Other loans and advances
Unsecured, considered good
Loan to ESOP trust	3,522.00
	3,522.00	ш
Unsecured, credit impaired
Inter-corporate deposit	0.58	0.58
Less: Impairment	(0.58)	(0.58)
	٠	$\blacksquare$
	3.943.68

8. Other non-current financial assets

	As at	As at
	March 31, 2022	March 31, 2021
	In ₹ Million	In ₹ Million
Considered good
Carried at amortised cost
Deposits with Bank (refer note 14)*	3.19	24 42
Add: Interest accrued but not due on deposits with Bank (refer note 14)	0.17	1.34
Deposits with banks	3.36	25.76

Deposit with financial institutions	100.00
Add: Interest accrued but not due on deposit with financial institutions	0.41
Deposits with financial institutions	100.41	$\blacksquare$
Security deposits	122.91	52.23
Credit impaired
Deposit with financial institutions	430.00	430.00
Add: Interest accrued but not due on deposit with financial institutions	0.98	0.98
Less: Credit impaired	(430.98)	(430.98)
Deposits with financial institutions

	226.68	77.99

* Out of the balance, fixed deposits of ₹ 3.03 million (Previous year : ₹ 24.09 million) have been earmarked against credit facilities
and bank guarantees availed by the Company

9. Deferred tax assets (net)

	As at	As at
	March 31, 2022	March 31, 2021
	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	87.05	41.87
Capital gains (net)	51.11	61.06
Cash flow hedges	14.06	46.90
	152.22	149.83
Deferred tax assets
Provision for leave encashment	125.68	95.76
Provision for long service awards	67.97	64.97
Allowance for expected credit loss	21.19	28.85
Tax credit	56.61	62.37
Right of use asset and lease liability	30.21	26.36
Others	117.28	117.26
	418.94	395.57
Deferred tax assets (net)	266.72	24574

Other non-current assets

	As at	As at
	March 31, 2022	March 31, 2021
	In ₹ Million	In ₹ Million
Capital advances (unsecured, considered good)	136.52	38.75
Prepayments	124.91	84 43
Balances with government authorities	296.55	296.55
	557.98	41973

Current financial assets : Investments

	As at	As at
	March 31, 2022	March 31, 2021
	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 '11(a)' below)	4.346.91	6.374.95
Total carrying amount of investments	4.346.91	6,374.95
Aggregate amount of quoted investments
Aggregate amount of unquoted investments	4.346.91	6,374.95

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

	As at	As at
	March 31, 2022	March 31, 2021
	In ₹ Million	In ₹ Million
Aditya Birla Sun Life Mutual Fund	883.65	1.011.03
Axis Mutual Fund	672.70	824.68
Kotak Mutual Fund	521.63	478.21
Nippon India Mutual Fund (formeny known as Reliance Mutual Fund)	472.88	۰
IDEC Mutual Fund	457.54	911.72
DSP Mutual Fund	443.20	37.38
ICICI Prudential Mutual Fund	399.94	710.33
UTI Mutual Fund	337.68	723.19
SBI Mutual Fund	120.01	166 36
Sundaram mutual fund	37.68	$\blacksquare$
HDFC Mutual Fund		963.10
L&T Mutual Fund		511.71
PGIM India Mutual Fund (formerly known as DHFL Pramerica Mutual Fund)		37.24
	4.346.91	6,374.95

Notes forming part of Condensed Interim Financial Statements

Trade receivables

	As at	As at
	March 31, 2022	March 31, 2021
	In ₹ Million	In ₹ Million
Unsecured, considered good*	4,426.84	2,966.26
Unsecured, credit impaired	84 21	118.29
	4,511.05	3,084.55
Less : Allowance for expected credit loss	(84.21)	(118.29)
	4.426.84	2,966.26
	4,426.84	2,966.26
*Includes dues from related parties (refer note 31)

13. Cash and cash equivalents

	As at	As at
	March 31, 2022	March 31, 2021
	In ₹ Million	In ₹ Million
Cash and cash equivalents as presented in cash flow statement
Cash on hand	0.09	0.10
Balances with banks
On current accounts#	302.74	360.22
On saving accounts	1.64	1.33
On exchange earner's foreign currency accounts	259.20	208.57
On deposit accounts with original maturity less than three months	$\sim$	292.50
	563.67	862.72

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

14. Bank balances other than cash and cash equivalents

	As at	As at
	March 31, 2022	March 31, 2021
	In ₹ Million	In ₹ Million
Deposits with banks*	5.858.66	7.108.47
Add: Interest accrued but not due on deposits with banks	179.78	301.29
Deposits with banks (carried at amortised cost)	6,038 44	7,409.76
Less: Deposit with maturity more than twelve months from the balance sheet date disclosed under non-current financial assets (refer note 8)	(3.19)	(24.42)
Less: Interest accrued but not due on non-current deposits with banks (refer note 8)	(0.17)	(1, 34)
	6.035.08	7,384.00
Balances with banks on unpaid dividend accounts**	2.94	3.00
	6,038 02	7,387,00

* Out of the balance, fixed deposits of ₹ 644.36 million (Previous year : ₹ 651.80 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
	March 31, 2022	March 31, 2021
	In ₹ Million	In ₹ Million
Carried at amortised cost
Loan to related parties (Refer note 31)
Unsecured, credit impaired
- Klisma e-Services Private Limited	$\blacksquare$	27.43
	$\blacksquare$	27.43
Less: Write off / impairment	$\blacksquare$	(27.43)
	$\blacksquare$

Other current financial assets (refer note 31)

	As at March 31, 2022	As at March 31, 2021
	In ₹ Million	In ₹ Million
Derivative instruments at fair value through OCI
Cash flow hedges
Foreign exchange forward contracts	84.59	294.46
Carried at amortised cost
Advances to related parties (Unsecured, considered good) (refer note 31)
Persistent Systems, Inc.	69.15	18.72
Persistent Systems France SAS	5.49	0.38
Persistent Telecom Solutions Inc.	0.13	0.01
Persistent Systems Malaysia Sdn. Bhd.	0.07	÷.
Persistent Systems Lanka (Private) Limited	0.72	0.02
Aepona Limited	1.16	2.34
PARX Consulting GmbH	0.06
Software Corporation LLC	0.25
Youperience Limited	0.04
Persistent Systems Mexico, S.A. de C.V.	10.01
Youperience GmbH	0.04
Persistent Systems Pte. Ltd.	0.29
Aepona Group Limited	0.08
Persistent Systems Germany GmbH	1.48
PARX Werk AG	1.88
Persistent Systems Israel Ltd.	0.14
	90.99	21.47
Advances to related parties (Unsecured, credit impaired) (refer note 31)
Klisma e-Services Private Limited		0.81
Less: Impairment of current financial assets	$\overline{a}$	(0.81) $\overline{\phantom{a}}$

Other advances (Unsecured, considered good)		21.79
Unbilled revenue	3,533,05	1,726.07
Security deposits	0,10	49 33
	3,708.73	2,113.12
17. Other current assets

			17 Other current assets

	As at	As at
	March 31, 2022	March 31, 2021
	In ₹ Million	In ₹ Million
Advances to suppliers (Unsecured, considered good)
Advances recoverable in cash or kind or for value to be received	277.27	136.47
Prepayments	498.68	251.85
Excess fund balance with Life Insurance Corporation of India	42.19	113.08
Other advances (Unsecured, considered good)
VAT receivable (net)	19.67	23.44
Service tax and GST receivable (net) (refer note 32(a))	533.45	1,132.09
	553.12	1,155.53
	1,371.26	1,656.93

Non-current financial liabilities : Borrowings

	As at	As at
	March 31, 2022	March 31, 2021
	In ₹ Million	In ₹ Million
Unsecured borrowings carried at amortised cost
Term loans
Indian rupee loan from others	5.55	7.39
Interest accrued but not due on term loans	0.08	0.11
	5.63	7.50
Less: Current maturity of long-term borrowings	(1.85)	(1.85)
Less: Current maturity of interest accrued but not due on term loan	(0.08)	(0.11)
	(1.93)	(1.96)
	3.70	5.54

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

Loan amounting to ₹ 5.55 million (Previous year ₹ 7.39 million) with Interest payable @ 3% per annum repayable in ten
equal annual installments over a period of ten years commencing from October 2015.

19. Lease liabilities

	As at	As at
	March 31, 2022	March 31, 2021
	In ₹ Million	In ₹ Million
Lease liabilities	758.26	378.54
Less: Current portion of lease liabilities	(146.51)	(73.82)
	61175	304.72

Movement of lease liabilities

MOVEHIELIL OF JEASE HADHILLES
	For the year ended	For the year ended
	March 31, 2022	March 31, 2021
	In ₹ Million	In ₹ Million
Opening balance	378.54	356.64
Additions	495.78	176.95
Deletions	(10.98)	(20.03)
Add: Interest recognised during the period / year	68.59	38.09
Less: Payments made	(173, 67)	(173.11)
Closing balance	758.26	378.54

Notes forming part of Condensed Interim Financial Statements

20. Non current liabilities : Provisions

	As at	As at
	March 31, 2022	March 31, 2021
	In ₹ Million	In ₹ Million
Provision for employee benefits
- Long service awards	245.54	240.94
	245.54	240.94

21. Trade payables

	As at March 31, 2022 In ₹ Million	As at March 31, 2021 In ₹ Million
Trade payables for goods and services*
-Dues of micro enterprises and small enterprises	10.30	30.20
-Dues of creditors other than micro enterprises and small enterprises	844 68	908.20
	854.98	938.40
.

*Includes dues payable to related parties (refer note 31)

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 Company regarding the status of registration of such vendors u Balance Sheet date. There are no delays in payment made to such suppliers during the period or for any earlier years and accordingly there is no
interest paid or outstanding interest in this regard in respect of payment ma

22. Other current financial liabilities

	As at	As at
	March 31, 2022	March 31, 2021
	In ₹ Million	In ₹ Million
Capital creditors	204.49	237.83
Accrued employee liabilities	119.21	154.58
Unpaid dividend *	2.94	3.00
Other liabilities	8.41	0.05
Payable to Selling Shareholders	31.83	$\sim$
	366.88	395.46

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

23. Other current liabilities

As at	As at
March 31, 2022	March 31, 2021
In ₹ Million	In ₹ Million
258.31 Unearned revenue	260.40
786.98 Advance from customers	1.023.53
Other payables
- Statutory liabilities 413.55	228.03
- Other liabilities* 50.20	167.05
1.509.04	1,679.01

*Includes balance of ₹ 35.64 million (previous year: ₹ 154.16 million) to be utilised against certain predefined activities specified in the agreement.

24. Current liabilities : Provisions

	As at	As at
	March 31, 2022	March 31, 2021
	In ₹ Million	In ₹ Million
Provision for employee benefits
- Leave encashment	499.37	380.49
- Long service awards	24.54	17.19
- Other employee benefits	1.745.82	747.91
	2.269.73	1,145.59

25. Revenue from operations (net) (refer note 31)

	For the quarter ended		For the year ended
	March 31, 2022	March 31, 2021	March 31, 2022	March 31, 2021
	In ₹ Million	In ₹ Million	In ₹ Million	In ₹ Million
Software services	10.243.72	6.750.86	35.406.71	24.270.63
Software licenses	106.38	95.72	348.09	525.45
	10.350.10	6.846.58	35.754.80	24,796.08

26 Other income

	For the quarter ended		For the year ended
	March 31, 2022	March 31, 2021	March 31, 2022	March 31, 2021
	In ₹ Million	In ₹ Million	In ₹ Million	In ₹ Million
Interest income
On deposits carried at amortised cost	80.41	110.71	311.08	381.66
On others	96.44	41.81	282.50	167.16
Dividend income from investments*	53.16	$\sim$	53.16	131.45
Other non-operating income
Foreign exchange gain (net)	72.59	128.53	208.93	67.12
Profit on sale of property, plant and equipment (net)	7.23	1.47	12.31	8.10
Net profit on sale/ fair valuation of financial assets designated as FVTPL	58.41	58.29	338.78	344.43
Excess provision in respect of earlier periods/ years written back	15.53		15.53
Miscellaneous income	7.14	8.94	102.28	76.24
	390.91	349.75	1324.57	1.176.16

*includes dividend received from investment in wholly owned subsidiaries. (Refer note 31)

27. Personnel expenses

	For the quarter ended		For the year ended
	March 31, 2022	March 31, 2021	March 31, 2022	March 31, 2021
	In ₹ Million	In ₹ Million	In ₹ Million	In ₹ Million
27.1 Employee benefits expense
Salaries, wages and bonus	5,876.20	3.644.89	19,766.82	12,806.57
Contribution to provident and other funds	335.50	197.46	1.016 64	666.24
Staff welfare and benefits	109.44	149.52	359.74	384.07
Share based payments to employees	240.20	79.35	739.52	236.33
	6,561.34	4.071.22	21,882.72	14,093.21
27.2 Cost of professionals
- Related parties (refer note 31)	119.31	260.29	649.60	1.323.73
- Others	164.02	204.50	812.31	451 34
	283 33	464.79	1,461.91	1.775.07
	6.844.67	4.536.01	23.344.63	15,868.28

Other expenses*

	For the quarter ended		For the year ended
	March 31, 2022	March 31, 2021	March 31, 2022	March 31, 2021
	In ₹ Million	In ₹ Million	In ₹ Million	In ₹ Million
Travelling and conveyance	36.65	(3.29)	151.53	39.58
Electricity expenses (net)	14.74	16.68	63.74	69.09
Internet link expenses	9.90	9.67	46.09	50.14
Communication expenses	16.35	4.98	60.91	73.17
Recruitment expenses	103.74	13.28	348.05	75.40
Training and seminars	50.69	3.17	99.17	23.97
Purchase of software licenses and support expenses	303.04	180.23	1,066.00	908.00
Bad debts	12.12	3.59	12.12	46.96
Reversal of allowance for expected credit loss (net)	(29.21)	(15.53)	(29.97)	(20.20)
Rent	20.00	18.01	73.22	77.50
Insurance	7.86	7.59	36.29	31.37
Rates and taxes	21.53	8.14	51.14	52.57
Legal and professional fees	61.04	79.26	238.09	196.13
Repairs and maintenance
- Plant and Machinery	40.21	21.97	120.72	94.92
- Buildings	6.43	4.17	19.85	19.26
- Others	5.28	2.82	20.43	15.20
Selling and marketing expenses	272.94	196.37	1.028.63	739.82
Advertisement, conference and sponsorship fees	1.13	0.84	4.23	3.54
Computer consumables	2.80	1.07	5.39	3.14
Auditors' remuneration	3.71	4.65	8.92	9.00
Corporate social responsibility expenditure	45.53	2.02	115.53	163.93
Books, memberships, subscriptions	3.35	2.05	15.76	12.69
Directors' sitting fees	1.28	1.18	7.43	4.84
Directors' commission	4.99	2.36	20.83	10.22
Loss on receivables and investment in associate		$\blacksquare$	28.29
Reversal of provision for receivables and investment in associate			(28.29)
Miscellaneous expenses	14.32	27.35	123.68	118.52
	1.030.42	592.63	3,707.78	2,818.76

Earnings per share

		For the quarter ended		For the year ended
		March 31, 2022	March 31, 2021	March 31, 2022	March 31, 2021
Numerator for Basic and Diluted EPS Net profit after tax (In ₹ Million)	(A)	1.944.85	1,400.72	6,858.66	5,050.86
Denominator for Basic EPS Weighted average number of equity shares	(B)	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
Basic earnings per share of face value of ₹ 10 each (in ₹)	(A/B)	25.45	18.33	89.74	66.09
Dijuted earnings per share of face value of ₹ 10 each (in ₹)	(A/C)	25.45	18.33	89.74	66.09

	For the quarter ended		For the vear ended
	March 31, 2022	March 31, 2021	March 31, 2022	March 31, 2021
Number of shares considered as basic weighted average shares outstanding	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

30 Financial assets and liabilities

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

Financial assets/ Financial liabilities			March 31. 2022				March 31. 2021		Fair value
	Ē	FVTOCI	Amortised Cost	Cost	EVFL	FVTOCI	Amortised Cost	Cost	hierarchy*
Financial Assets:
Investments in subsidiaries and associates				5,013.10				4,33575
Investments in equity instruments	່ອ				6.00				evel 3
Investments in bonds			2,879 29				2,630.80
Investments in mutual funds	5,183.33				7,181.94				Level
Loans			3,943.68				1
Deposit with banks and financial institutions (including interest			6,138.85				7,409.76
accrued but not due on deposits with banks)
Cash and cash equivalents (including unpaid dividend)			566.61				86572
Trade receivables (net)			1,426.84				2,966.26
Forward contracts receivable		84.59				294 46			-evel 2
Unbilled revenue			3,533.05				1,726.07
Other non current financial assets			12291				5223
Other current financial assets			91.09				92.59
Total Financial Assets	5,18933	8459	21,70232	5,013.10	7,18794	294 46	15,743,43	4,33575
Financial Liabilities:

Borrowings (including accrued interest)			563				750
Trade payables			854 98				938 40
Lease liabilities			75826				37854
Other financial liabilities (excluding borrowings)			36688				395.46
Total Financial Liabilities			1,98575				1,719.90

*Fair value hierarchy:

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

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

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

Level 3 — Inputs are not based on observable market data (unobservable in view we we read in which as proces) or indirectly (i.e. derived from prices).
In the transactions in the same instrument nor are the market data, 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 March 31, 2022 and March 31, 2021
are with its related parties with whom the Company generally enters into transac business.

Contingent liabilities

Sr. No	Particulars	As at
		March 31, 2022	March 31, 2021
a)	Claims against the company not acknowledged as debt*
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.	173.78	173.78
	The Company has paid ₹ 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.
	(ii) In respect of export incentives pertaining to previous periods amounting to ₹ 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
	(iii) Other Pending litigations in respect of Indirect taxes	13.53	27.33
$\overline{2}$	Income tax demands disputed in appellate proceedings.	855.02	478.79
b)	Guarantees and Letter of Comfort on behalf of Subsidiaries
	Guarantees given on behalf of subsidiaries	770.78	1,109.08
2	Letters of comfort on behalf of subsidiary (USD 60 Million (Previous year: Nil))	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 provis

Notes forming part of Condensed Interim Financial Statements

33 Business Combination

a. Shree Infosoft Pvt. Ltd
(1) On November 18, 2021 the Company acquired business of implementing and maintaining innovative cloud, infrastructure, data, and AI/ML solutions from Shree Infosft Pvt, Ltd, India ('Shree Infosoft'). After the acquisition of business, the Company does not hold any equity interest in Shree Infosoft. The acquisition will strengthen the Company's presence in innovative cloud, infrastructure and solutions in artificial intelligence and machine learning. Its acquisiton will help the Company meet the growing needs of its clients and it also add a new point of presence in NCR, India, additional industry capabilities.
(2) The acquisition of the said businesses is 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 and liabilities assumed as at the reporting date. The Company has exercised the option available under Ind AS 103, which provides The Company a period of twelve months from the acquisition date for completing the accounting of purchase price allocation on provisional basis.

The fair value of amount of consideration paid/payable recognised on provisional basis is ₹ 108.71 million.

(3) Based on provisional purchase price allocation, the Company has recognised Property, Plant and Equipment amounting to ₹1.97 Million and provisional intangible assets represented by contractual rights amounting to ₹85 Million and goodwill amounting to ₹21.74 Million.

b. Data Glove IT Solutions Private Limited

(1) On March 1, 2022 the Company acquired business from Data Glove IT Solutions Private Ltd. which comprise of Microsoft Cloud Modernization Services Partnership with Gold level competencies in Azure Cloud Platform, Data Center, Application Development and Data Analytics, Application Integration. After the acquisition of business, the Company does not hold any equity interest in Data Glove IT Solutions Private Ltd. This acquisition will help Persistent enhance its partnership and expand expertise in Azure-based digital transformation, enabling us to capture a larger share of this high growth market. This acquisition also broadens the company's delivery capabilities with highly skilled talent, establishing a new nearshore delivery center in Costa Rica and expanding its presence in the US and India.
(2) The acquisition of the said businesses is 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 and liabilities assumed as at the reporting date. The Company has exercised the option available under Ind AS 103, which provides The Company a period of twelve months from the acquisition date for completing the accounting of purchase price allocation on provisional basis.

The fair value of amount of consideration paid/payable recognised on provisional basis is ₹ ₹ 520.16 Million.

(3) Based on provisional purchase price allocation, the Company has recognised provisional intangible assets represented by contractual rights amounting to ₹420.31 Million and goodwill amounting to ₹99.85 Million.

Notes forming part of Condensed Interim Financial Statements

34 The Company has deposits of ₹ 430 million with the financial institutions viz. Infrastructure Leasing & Financial Services Ltd. (IL&FS) and IL&FS Financial Services Ltd. (referred to as "IL&FS Group") as on the balance sheet date. 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&F thereon till the date the deposits had become doubtful of recovery. The Management is hopeful of recovery though with a time lag. The Company continues to monitor developments in the matter and is committed to take steps including legal action that may be necessary to ensure full recovery of the said deposits.
35 The Company has recognized notional interest on lease liability of ₹ 68.59 million (Previous year: ₹ 38.09 million) under finance cost as required by Ind AS 116: Leases.
36 The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the company towards Provident Fund and Gratuity. The Ministry of Labour and Employment has released draft rules for the Code on Social Security, 2020 on November 13, 2020, and has invited suggestions from
stakeholders which are under active consideration by the Ministry. 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.
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 dassification.

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

SHASHI Digitally signed by
TADWALKAR Date: 2022.04.27
TADWALKAR Date: 2022.04.27 Anand Deshpande

Shashi Tadwalkar

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

Dr. Anand Deshpande Chairman and Managing Director DIN: 00005721 Place: Pune Date: April 27, 2022

Executive Director and Chief Executive Officer DIN: 02506494

Sandeen Kalra

Place: Pune

Date: April 27, 2022

Prayeen Kadle Independent Director DIN: 00016814

male

Place: Pune Date: April 27, 2022

Sunil Sapre r 27, 2022 17:19 GMT+5.5) Sapre (Ap)

Amit Atre Amit Atre (Apr 27, 2022 17:05 GMT+5.5)

Sunil Sapre Executive Director and Chief Financial Officer DIN: 06475949

Amit Atre Company Secretary Membership No. A20507

Place: Pune Date: April 27, 2022 Place: Pune Date: April 27, 2022

Place: Pune Date: April 27, 2022

. (Apr 27, 2022 17:04 GMT+5.5)

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

To the Members of Persistent Systems Limited

Report on the Audit of the Consolidated Financial Statements

Opinion

We have audited the accompanying 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'), its associate, as listed in Annexure 1, which comprise the Consolidated Balance Sheet as at 31 March 2022, the Consolidated Statement of Profit and Loss (including Other Comprehensive Income), the Consolidated Cash Flow Statement and the Consolidated Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanations given to us and based on the consideration of the reports of the other auditors on separate financial statements and on the other financial information of the subsidiaries, the aforesaid 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 conformity with the Indian Accounting Standards ('Ind AS') specified under section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules, 2015, and other accounting principles generally accepted in India of the consolidated state of affairs of the Group, its associate, as at 31 March 2022, and their consolidated profit (including other comprehensive income), consolidated cash flows and the consolidated changes in equity for the 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 Consolidated Financial Statements section of our report. We are independent of the Group, its associate 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 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 together with the audit evidence obtained by the other auditors in terms of their reports referred to in paragraph 13 of the Other Matters section below, is sufficient and appropriate to provide a basis for our opinion.

Chartered Accountants

Key Audit Matters

1. Key audit matters are those matters that, in our professional judgment and based on the consideration of the reports of the other auditors on separate financial statements of the subsidiaries, associate, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
1. We have determined the matters described below to be the key audit matters to be communicated in our report.

Sr. No.	Key audit matter	How our audit addressed the key audit matter
1.	Accuracy of revenues and onerous obligations in respect of fixed-price contracts	Our audit work included but was not restricted to the following procedures:
	Refer Notes 4.4(i) notes forming part of the Consolidated Financial Statements. The Company has entered into various fixed price software development contracts, for	x Obtained an understanding of the systems, processes and controls implemented by management for recording and calculating revenue, and the associated unbilled revenue, unearned and deferred revenue balances, and onerous contract obligations.
	which revenue is recognized by the Company using the percentage of completion computed as per the Input method prescribed under Ind AS 115 Revenue from Contracts with Customers. The said revenue recognition accounting policy involves	x Tested the design and operating effectiveness of related manual controls and involved auditor's experts to assess key information technology (IT) controls over:
	exercise of significant judgement by the management and the following factors requiring significant auditor attention:	¾ IT environment in which the business systems operate, including access controls, segregation of duties, program change controls, program development
	x High inherent risk around accuracy of revenue, given the customised and complex nature of these contracts and significant involvement of IT systems.	controls and IT operation controls; and ¾ Testing the IT controls over the completeness and accuracy of cost/efforts and revenue reports generated by the
	x High estimation uncertainty relating to determination of the progress of each contract, costs incurred till date and additional costs required to complete the remaining contract.	system; and ¾ Testing the access and application controls pertaining to allocation of resources and budgeting systems which prevents the unauthorized changes to
	x Identification and determination of onerous contracts and related obligations.	recording of efforts incurred and controls relating to the estimation of contract efforts required to complete the project.
	x Determination of unbilled revenue receivables and unearned revenue related to these contracts as at end of reporting period.	x Selected a sample of contracts and performed a retrospective review of efforts incurred with estimated efforts to identify significant variations and verify whether those variations have been considered in estimating the
	Considering the materiality of the amounts involved, and significant degree of judgement and subjectivity involved in the estimates as mentioned above, we have identified revenue recognition for fixed price contracts and determination of onerous contracts and related provisions, as a key audit matter for the current year audit.	remaining efforts to complete the contract. x Reviewed a sample of contracts with unbilled revenues to identify possible delays in achieving milestones, which require change in estimated efforts to complete the remaining performance obligations.

Chartered Accountants

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

Sr. No.	Key audit matter	How our audit addressed the key audit matter
		x Performed analytical procedures for reasonableness of incurred and estimated efforts.
		x Evaluated management's identification of onerous contracts based on estimates tested as above.
		x Evaluated the appropriateness of disclosures made in the financial statements with respect to revenue recognized during the year as required by applicable Indian Accounting Standards.
2.	Contingent liabilities relating to export incentive litigation	Our audit work included but was not restricted to the following procedures:
	Refer Note 42 – notes forming part of the Consolidated Financial Statements regarding dispute on export incentives scrips awarded to the Group.	x Obtained an understanding of the Company's process and the underlying controls for identification and monitoring of the pending litigations and completeness of such litigations for financial reporting
	The Group in previous years has deposited under protest ₹ 296.55 million with the Directorate General of Foreign Trade pursuant to the Summons received from the Directorate of Revenue Intelligence ('DRI') and have made a corresponding application with the relevant authorities.	x Assessed the appropriateness of the Company's accounting policies relating to provisions and contingent liability disclosure, in accordance with the applicable Indian Accounting Standards
	Further in the previous year, the Group has received Show Cause Notice ('SCN') from DRI, claiming that the Group is not eligible for the benefit under the scheme and if the Group	x Discussed developments during the year in the export incentive matter with the management and obtained opinion from the management's expert.
	has wrongfully claimed such benefits, it will be liable for such consequential penalties.	x Obtained the documents for various correspondences made between the Group and the respective departments.
	The management based their assessment and interpretation of various applicable rules, regulations, practices and precedents, and based on various documents filed with relevant authorities to avail these claims, believes that they have a strong case and the export incentives of ₹ 296.55 million deposited under protest are fully recoverable. Accordingly, the duty paid under protest, has been presented as receivable from government authority and has been correspondingly disclosed under contingent liability.	x Involved auditor's expert to test the management's underlying assumptions in estimating the export incentive benefits and the possible outcome of the matters. This involved assessing the probability of an unfavourable outcome of a given proceeding and the reliability of estimates of related amounts which involved consideration of legal precedence and other rulings and expert opinion obtained by the management. x Assessed adequacy and appropriateness of
	In view of the amounts involved and uncertainty pertaining to the final outcome of the matter requiring significant management judgement in determination of recoverability of the aforesaid balance with respect to the said litigation, this matter is considered as a key audit matter for the current year's audit.	the contingent liability disclosure in Note 42 to determine whether management has presented the facts and circumstances adequately.

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

Our audit work included but was not restricted to

Obtained an understanding of the terms and conditions of the purchase agreement and the consideration transferred to assess the control over the business and the acquisition date, in accordance with Ind AS 103, by understanding and management's external valuation specialist for the valuation of intangibles including the purchase price allocation and assessed the competence, of the gained an understanding of the work done by the of the judgements used to fair value the identifiable assets and liabilities and identifiable intangible assets; Tested the identifiable assets and liabilities which form part of working capital including any adjustment thereof, to assess the reasonableness / appropriateness of the amounts used for purchase price allocation; Involved our auditor's internal valuation experts to assist us in validating the valuation assumptions and methodology considered by the management's expert to allocate the purchase price to identifiable assets and of the recoverable amount of goodwill recorded as on the date of acquisition by evaluating the including the management estimates and judgement; Evaluated the appropriateness and adequacy of disclosures given in the standalone financial statements, including disclosure of significant assumptions and judgements, in accounting

Chartered Accountants

Sr. No.	Key audit matter	How our audit addressed the key audit matter
	We have considered the above business combinations to be a matter of most significance to our current year audit considering the materiality of the amounts involved, complexity involved in valuation, significant judgements and estimates in relation to the accounting as per the requirements of Ind AS 103 including ascertainment of acquisition date, assessment of fair values of assets and liabilities recognised on acquisition, judgement applied in identification and measurement of intangible assets and therefore, it has been identified as a key audit matter for the current year audit.

Information other than the Consolidated Financial Statements and Auditor's Report thereon

The Holding Company's Board of Directors are responsible for the other information. The other information comprises the information included in the Annual Report, but does not include the consolidated financial statements and our auditor's report thereon. The Annual Report is expected to be made available to us after the date of this auditor's report.

Our opinion on the consolidated financial statements does not cover the other information and we will not express any form of assurance conclusion thereon.

In connection with our audit of the consolidated financial statements, our responsibility is to read the other information identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.

When we read the Annual Report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance.

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

The accompanying consolidated financial statements have been approved by the Holding Company's Board of Directors. The Holding Company's Board of Directors are responsible for the matters stated in section 134(5) of the Act with respect to the preparation and presentation of these consolidated financial statements that give a true and fair view of the consolidated financial position, consolidated financial performance including other comprehensive income, consolidated changes in equity and consolidated cash flows of the Group including its associate in accordance with the Ind AS specified under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, and other accounting principles generally accepted in India. The respective Board of Directors of the companies included in the Group and its associate are responsible for maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Group and 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 consolidated financial statements by the Board of Directors of the Holding Company, as aforesaid.

Chartered Accountants

1. In preparing the 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 and of its associate.

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

1. Our objectives are to obtain reasonable assurance about whether the 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 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 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;
x Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act we are also responsible for expressing our opinion on whether the Holding Company has adequate internal financial controls system with reference to financial statements in place and the operating effectiveness of such controls.;
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 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; and
x Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the 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, and its associate, to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the audit of financial statements of such entities included in the financial statements, of which we are the independent auditors. For the other entities included in the 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.

Chartered Accountants

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

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.
1. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Other Matters

We did not audit the financial statements of twenty two subsidiaries, whose financial statements reflect total assets of ₹5,579.46 million and net assets of ₹ 2,075.59 million as at 31 March 2022, total revenues of ₹ 5,782.68 million and net cash inflows amounting to ₹ 312.85 million for the year ended on that date, as considered in the consolidated financial statements. These financial statements have been audited by other auditors whose reports have been furnished to us by the management and our opinion on the consolidated financial statements, in so far as it relates to the amounts and disclosures included in respect of these subsidiaries, and our report in terms of sub-section (3) of section 143 of the Act in so far as it relates to the aforesaid subsidiaries, is based solely on the reports of the other auditors.

Our opinion above on the consolidated financial statements, and our report on other legal and regulatory requirements below, are 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.

Report on Other Legal and Regulatory Requirements

1. As required by section 197(16) of the Act, based on our audit we report that the Holding Company, covered under the Act paid remuneration to their respective directors during the year in accordance with the provisions of and limits laid down under section 197 read with Schedule V to the Act. Further, we report that the provisions of section 197 read with Schedule V to the Act are not applicable to twenty three subsidiary companies, and one associate company covered under the Act since none of such companies is a public company as defined under section 2(71) of the Act.
1. As required by clause (xxi) of paragraph 3 of Companies (Auditor's Report) Order, 2020 ('the Order') issued by the Central Government of India in terms of section 143(11) of the Act based on the consideration of the Order reports issued, of companies included in the consolidated financial statements and covered under the Act we report that there are no qualifications or adverse remarks reported in the respective Order reports of such companies.
1. As required by section 143(3) of the Act, based on our audit and on the consideration of the reports of the other auditors on separate financial statements and other financial information of the subsidiaries, we report, to the extent applicable, that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit of the aforesaid consolidated financial statements;
b) In our opinion, proper books of account as required by law relating to preparation of the aforesaid consolidated financial statements have been kept so far as it appears from our examination of those books and the reports of the other auditors;

Chartered Accountants

c) The consolidated financial statements dealt with by this report are in agreement with the relevant books of account maintained for the purpose of preparation of the consolidated financial statements;
d) In our opinion, the aforesaid consolidated financial statements comply with Ind AS specified under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015;
e) On the basis of the written representations received from the directors of the Holding Company and taken on record by the Board of Directors of the Holding Company, and the reports of the statutory auditors of its subsidiary companies, covered under the Act, none of the directors of the Group companies are disqualified as on 31 March 2022 from being appointed as a director in terms of section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls with reference to financial statements of the Holding Company, and its subsidiary companies, associate company covered under the Act, and the operating effectiveness of such controls, refer to our separate report in 'Annexure A'
g) With respect to the other matters to be included in the Auditor's Report in accordance with rule 11 of the Companies (Audit and Auditors) Rules, 2014 (as amended), 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 report of the other auditors on separate financial statements as also the other financial information of the subsidiaries and associate:
i. The consolidated financial statements disclose the impact of pending litigations on the consolidated financial position of the Group, its associate as detailed in Note 42 to the consolidated financial statements;
ii. The Holding Company and its subsidiary companies did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses as at 31 March 2022;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Holding Company, and its subsidiary companies and associate during the year ended 31 March 2022};
h) The dividend declared or paid during the year ended 31 March 2022 by the Holding Company and its subsidiary companies is in compliance with section 123 of the Act.

For Walker Chandiok & Co LLP Chartered Accountants

Firm's Registration No:001076N/N500013

SHASHI TADWALKAR Digitally signed by SHASHI TADWALKAR Date: 2022.04.27 22:14:05 +05'30'

Shashi Tadwalkar Partner Membership No:101797

UDIN:22101797AHXQAO2838

Place: Pune Date: 27 April 2022

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

Chartered Accountants

Annexure 1

List of entities included

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	PARX Werk AG	Wholly owned subsidiary of PSGG
16	PARX Consulting GmbH	Wholly owned subsidiary of PARX Werk AG
17	Capiot Software Private Limited	Wholly owned subsidiary of PSL
18	Capiot Software Inc. (Capiot US)	Wholly owned subsidiary of PSI
19	Capiot Software Pty Limited	Wholly owned subsidiary of Capiot US
20	Capiot Software Pte Limited	Wholly owned subsidiary of Capiot US
21	Persistent Systems S.R.L.	Wholly owned subsidiary of PSI
22	Software Corporation International	Wholly owned subsidiary of PSI
	(Acquired w.e.f. 5 October 2021)
23	SCI Fusion360 LLC	Wholly owned subsidiary of PSI
	(Acquired w.e.f. 5 October 2021)
24	Data Glove IT Solutions Limitada	Wholly owned subsidiary of PSGG
	(Acquired w.e.f. March 1, 2022)
25	Klisma e-Services Private Limited	Associate company of PSL
	(Dissolved w.e.f. 10 August 2021)

Annexure A to the Independent Auditor's Report of even date to the members of Persistent Systems Limited on the consolidated financial statements for the year ended 31 March 2022

Independent Auditor's Report on the internal financial controls with reference to financial statements under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ('the Act')

In conjunction with our audit of the 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'), and its associate as at and for the year ended 31 March 2022, we have audited the internal financial controls with reference to financial statements of the Holding Company, covered under the Act, as at that date.

Responsibilities of Management and Those Charged with Governance for Internal Financial Controls

The Board of Directors of the Holding Company, covered under the Act, are responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting ('the Guidance Note') issued by the Institute of Chartered Accountants of India (the 'ICAI'). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of the Company's business, including adherence to the Company's policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.

Auditor's Responsibility for the Audit of the Internal Financial Controls with Reference to Financial Statements

1. Our responsibility is to express an opinion on the internal financial controls with reference to financial statements of the Holding Company, as aforesaid, based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India ('ICAI') prescribed under Section 143(10) of the Act, to the extent applicable to an audit of internal financial controls with reference to financial statements, and the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting ('the Guidance Note') issued by the ICAI. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls with reference to financial statements were established and maintained and if such controls operated effectively in all material respects.
1. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls with reference to financial statements and their operating effectiveness. Our audit of internal financial controls with reference to financial statements includes obtaining an understanding of such internal financial controls, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
1. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the internal financial controls with reference to financial statements of the Holding Company, as aforesaid.

Meaning of Internal Financial Controls with Reference to Financial Statements

A company's internal financial controls with reference to financial statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal financial controls with reference to financial statements include those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as

Chartered Accountants

necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls with Reference to Financial Statements

Because of the inherent limitations of internal financial controls with reference to financial statements, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls with reference to financial statements to future periods are subject to the risk that the internal financial controls with reference to financial statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Holding Company, has in all material respects, adequate internal financial controls with reference to financial statements and such controls were operating effectively as at 31 March 2022, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting ('the Guidance Note') issued by the Institute of Chartered Accountants of India (the 'ICAI').

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

Shashi Tadwalkar Partner Membership No:101797

UDIN:22101797AHXQAO2838

Place: Pune Date: 27 April 2022

CONSOLIDATED BALANCE SHEET AS AT MARCH 31, 2022

		Notes	As at	As at
			March 31, 2022	March 31, 2021
	ASSETS		In ₹ Million	In ₹ Million

	Non-current assets Property, plant and equipment	6.1	2,917.67	2,401.40
	Capital work in progress Right of use assets	6.2 6.3	1,071.20 1,358.21	121.81 852.58
	Goodwill	6.4	2,790.22	85.94
	Other Intangible assets	6.5	8,269.63 16,406.93	1,229.50 4,691.23
	Financial assets
	- Investments - Loans	7 8	3,877.72 3,522.00	3,621.27 ÷
	- Other non-current financial assets	9	340.74	160.52
	Deferred tax assets (net) Other non-current assets	10 11	1,122.72 531.61	1,037.57 441.52
			25,801.72	9,952.11
	Current assets
	Financial assets - Investments	12	4.346.91	6,374.95
	Trade receivables (net)	13	9,484.29	5,708.97
	Cash and cash equivalents Bank balances other than cash and cash equivalents	14 15	2,977.99 6,166.59	2,419.30 7,389.70
	- Loans	16	16.10	21.79
	- Other current financial assets Current tax assets (net)	17	3,214.90 179,57	2,516.70 188,00
	Other current assets	18	1,952.90	2,083.72
			28,339.25	26,703.13
	TOTAL		54,140.97	36,655.24
	EQUITY AND LIABILITIES
	EQUITY
	Equity share capital	5	764.25	764 25
	Other equity		32,917.95	27,192.41
			33,682.20	27,956.66
	ЦАВІЦПЕS
	Non current liabilities
	Financial liabilities - Lease liabilities	20	1,114.29	716 17
	- Borrowings	19	2,800.79	44.27
	- Other financial liabilities	23	2,088.60
	Provisions	21	245.54	240.94
			6,249.22	1,001.38
	Current liabilities Financial liabilities
	- Lease liabilities	20	342.58	222.00
	- Trade payables - Dues of micro and small enterprises	22	10.30	30,20
	- Dues of creditors other than micro and small enterprises		4,288.41	2,703.24
	Borrowings - Other financial liabilities	19 23	1,524.56 2,173.60	1.96 388.21
	Other current liabilities	24	1,571.72	1,514.95
	Provisions Current tax liabilities (net)	25	3,949.66 348.72	2,477.79 358.85
			14,209.55	7,697.20
	TOTAL		54,140.97	36,655.24
	Summary of significant accounting policies	4
	The accompanying notes are an integral part of the consolidated financial statements.

	As per our report of even date
	For Walker Chandiok & Co LLP Chartered Accountants	For and on behalf of the Board of Directors of Persistent Systems Limited
	Firm Registration No: 001076N/N500013
	Digitally signed by		2022 18:05 GMT+5.5)
SHASHI	SHASHI TADWALKAR Anand Deshpande
TADWALKAR Date: 2022.04.27	22:14:52 +05'30'			ዺ
	Shashi Tadwalkar	Dr. Anand Deshpande	Sandeep Kaira	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	Place: Pune	Place: Pune
		Date: April 27, 2022	Date: April 27, 2022	Date: April 27, 2022
	SUnil Sapre Sunil Sapre (Apr 27, 2022 17:19 GMT+5.5)			Amit Atre
				Amit Atre (Apr 27, 2022 17:04 GMT+5.5)
		Sunil Sapre Executive Director and Chief	Amit Atre
		Financial Officer	Company Secretary
		DIN: 06475949	Membership No. A20507
	Place: Pune	Place: Pune	Place: Pune
	Date: April 27, 2022	Date: April 27, 2022	Date: April 27, 2022

CONSOLIDATED STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED MARCH 31, 2022

	Notes	For the year ended
		March 31, 2022	March 31, 2021
		In ₹ Million	In ₹ Million
Income
Revenue from operations (net)	26	57,107.46	41,878.88
Other income	27	1,439.55	1,077.72
Total income (A)		58.547.01	42,956.60
Expenses
Employee benefits expense	28.1	34,593.10	25, 157.99
Cost of professionals	28.2	7,974.18	5.563 68
Finance costs (refer note 48)		118.35	57.94
Depreciation and amortization expense	66	1,660.12	1,755.50
Other expenses	29	4.958.47	4,327.06
Total expenses (B)		49,304.22	36,862 17
Profit before tax (A B)		9,242.79	6,094.43
Tax expense
Current tax		2,322 85	1.774.01
Tax charge in respect of earlier years		42.57	10.58
Deferred tax credit		(26.49)	(196.93)
Total tax expense		2,338.93	1,587.66

Profit for the year (C)		6.903.86	4.506.77
Other comprehensive income
Items that will not be reclassified to profit or loss (D)
- Remeasurements of the defined benefit liabilities / asset (net of tax)		(183.87)	10.25

Items that may be reclassified to profit or loss (E)		(183.87)	10.25
- Effective portion of cash flow hedge (net of tax)		(97.65)	383.54
- Exchange differences in translating the financial statements of foreign operations		138.96
			(20.07)
		4131	363 47
Total other comprehensive income for the year $(D) + (E)$		(142.56)	373.72

Total comprehensive income for the year $(C) + (D) + (E)$		6,761.30	4,880.49
Earnings per equity share	30
[Nominal value of share ₹10 (Previous year: ₹10)]
Basic (In ₹)		90.34	58.97
Diluted (In ₹)		90.34	58 97

Summary of significant accounting policies.	4

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

As per our report of even date

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

$\left.\begin{array}{l|l} \text{SHASH} & \text{Digitally signed by} \ \text{SHASH TADWALKAR} & \text{State: } 2022.04.27 \ \text{TADWALKAR} & \text{22:15:10 + 05'30'} \end{array}\right.$ Anand Deshpande

Shashi Tadwalkar

Partner Membership No.: 101797

Sandeep Kalra
Executive Director and
Chief Executive Officer Dr. Anand Deshpande Chairman and Managing
Director

Sandeep Kalra

2022 18:05 GMT+5.5)

For and on behalf of the Board of Directors of

Persistent Systems Limited

DIN: 00005721

Sandeep Kalra (Apr

Praveen Kadle Independent Director DIN: 02506494 DIN: 00016814

male

Place: Pune

Place: Pune
Date : April 27, 2022 Place: Pune
Date : April 27, 2022

Date : April 27, 2022

Sunil Sapre
Sunil Sapre (Apr 27, 2022 17:19 GMT+5.5) Amit Atre- Amit Atre (Apr 27, 2022 17:04 GMT+5.5) Amit Atre
Company Secretary Sunil Sapre
Executive Director and
Chief Financial Officer DIN: 06475949 Membership No. A20507 Place: Pune Place: Pune Place: Pune Date: April 27, 2022 Date: April 27, 2022 Date: April 27, 2022

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

		For the year ended
		March 31, 2022 In ₹ Million	March 31, 2021 In ₹ Million
Cash flow from operating activities
Profit before tax		9,242.79	6.094.43
Adjustments for:
Interest income		(600.22)	(558, 70)
Finance costs		118.35	57 94
Depreciation and amortization expense		1,660.12	1,755.50
Unrealised exchange loss/ (gain) (net)		(25.92) 305 64	139.55
Change in foreign currency translation reserve Exchange (gain) / loss on derivative contracts		79 38	(42.32) (169.80)
Exchange loss / (gain) on translation of foreign currency cash and cash equivalents		1.70	11.50
Bad debts		65.27	90.30
(Reversal) / Allowance for expected credit loss (net)		(105.06)	31 32
Employee stock compensation expenses		950.23	290.44
Loss / Impairment of non current investments		148 40	18.53
Remeasurements of the defined benefit liabilities / asset (before tax effects)		(183.87)	10.25
Impairment of loan			23.96
Excess provision in respect of earlier years written back		(6600)	(4179)
Profit on sale/ fair valuation of financial assets designated as FVTPL		(354.30)	(346.74)
Profit on sale of property, plant and equipment (net)		(12.45)	(1.34)
Operating profit before working capital changes		11,224.06	7,363.03
Movements in working capital :
Decrease / (Increase) in non-current and current loans		5.69	(40.03)
Increase in other non current assets		(147.89)	(76.81)
Increase in other current financial assets		(869.22)	(104.23)
Decrease / (Increase) in other current assets		146 71	58 26
(Increase)/ Decrease in trade receivables		(3,508.56)	58 49
Increase in trade payables, current liabilities and non current liabilities		2,489.72	757.56
Increase in provisions		1,476.47 10,816.98	924 95 8,941.22
Operating profit after working capital changes Direct taxes paid (net of refunds)		(2,367.12)	(1,581.97)
Net cash generated from operating activities	(A)	8,449.86	7,359.25

Cash flows from investing activities
Payment towards capital expenditure (including intangible assets, capital advances and capital creditors)		(3,853.97)	(1, 281.04)
Proceeds from sale of property, plant and equipment		46.02	30.02
Acquisition of businesses including cash and cash equivalents of ₹61.07 million (Previous year ₹ 30.90 million)		(6, 154.02)	(448.47)
Purchase of bonds		(711.90)	(712.18)
Proceeds from sale/ maturity of bonds Investments in mutual funds		499 95	350 53
Proceeds from sale / maturity of mutual funds		(33, 456, 80) 35,762.24	(24, 591, 91) 25,068.92
Maturity / (Investments) of bank deposits having original maturity over three months		1,121.92	(4, 198.89)
Investments in deposits with financial institutions		(10000)
Investment in common / preferred stocks		(123.61)	$\overline{a}$
Loan to ESOP Trust		(3,522.00)
Interest received		718.74	366.29
Net cash used in investing activities	(B)	(9,773.43)	(5, 416, 73)

Cash flows from financing activities
Repayment of long term borrowings		(1.84)	(4.54)
Net proceeds from long term borrowings		4,280.99
Payment of lease liabilities		(350.83)	(319.11)
Specific project related grant received Interest paid		(118.38)	9.00 (58.01)
Dividends paid		(1,987.05)	(1,069.95)
Net cash generated from / (used in) financing activities	(C)	1,822.89	(1,442.61)

		For the year ended
	March 31, 2022	March 31, 2021
	In ₹ Million	In ₹ Million
Net increase in cash and cash equivalents $(A + B + C)$	499 32	499.91
Cash and cash equivalents at the beginning of the year	2.419.30	1.899.99
Cash and cash equivalents acquired on acquisition	61.07	30.90
Effect of exchange difference on translation of foreign	(1.70)	(11.50)
currency cash and cash equivalents
Cash and cash equivalents at the end of the year	2,977.99	2,419.30
Components of cash and cash equivalents
Cash on hand (refer note 14)	0.24	0.41
Balances with banks
On current accounts # (refer note 14)	2,337.96	1,583.20
On saving accounts (refer note 14)	1.64	1.33
On exchange earner's foreign currency accounts (refer note 14)	259 20	208.57
On deposit accounts with original maturity less than three months (refer note 14)		625.79
On Escrow accounts** (refer note 14)	378 95
Cash and cash equivalents	2 977 99	2,419.30

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

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

Summary of significant accounting policies - refer note 4

The accompanying notes are an integral part of the 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 $\epsilon$ 2022 18:05 GMT+5.5)

SHASHI Digitally signed by
TADWALKAR 2215284257
TADWALKAR 22152840530

Shashi Tadwalkar Partner

Membership No. :- 101797

Dr. Anand Deshpande Chairman and Managing Director DIN: 00005721

Date: April 27, 2022

Place: Pune

Sandeep Kalra

DIN: 02506494

Executive Director and

Chief Executive Officer

Place: Pune Date: April 27, 2022 Date: April 27, 2022

male

Praveen Kadle

DIN: 00016814

Independent Director

	Sunil Sapre		Amit Atre-
	Sunil Sapre (Apr 27, 2022 17:19 GMT+5.5)		Amit Atre (Apr 27, 2022 17:04 GMT+5.5)
		Sunil Sapre Executive Director and Chief Financial Officer	Amit Atre Company Secretary
		DIN: 06475949	Membership No. A20507
Place: Pune Date: April 27, 2022		Place: Pune Date: April 27, 2022	Place: Pune Date: April 27, 2022

Persistent Systems Limited
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED MARCH 31, 2022

A. Share capital

(refer note 5)

(In ₹ Million)

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

764.25	$\blacksquare$	764.25

(In ₹ Million)

Balance as at April 1, 2020	Changes in equity share capital during the year	Balance as at March 31, 2021

764.25	$\blacksquare$	764 25

B Other equity									n < Million)
Particulars				Reserves and surplus				tems of other comprehensive income	Tota
	General reserve	outstanding reserve Share options	Gain on bargain purchase	Capital redemption eserve	Special Economic Zone re- investment reserve	Retained earnings	Effective portion of cash flow hedges	Exchange differences on translating the
								financial statements of
								foreign operations
Bajance as at April 1, 2021	14,356.53	47070	57.31	3575		11,564.42	139.45	568.25	27,192.41
Profit for the period						6,903.86		j	6,903.86
Other comprehensive income for the period						$(183.87)$ $(1,987.05)$	(97.65)	138.96	(142.56)
Dividend									1,987.05)
Transfer to general reserve	2,743.46					2,743.46)
Adjustments towards employees stock options	27684
Employee stock compensation expenses		$(276.84)$ 950.23							950.23
Other changes during the year	(0.18)	0.75	0.49						1.06
Balance at March 31, 2022	17,376 65	144 84	57.80	3575		13,553.90	41.80	707.21	32,91795
									In ₹ Million)
Particulars				Reserves and surplus				tems of other comprehensive income	Total
	ineral reserve ŏ	Share options	Gain on bargain	Capital redemption	Special Economic Zone re-	Retained earnings	Effective portion of	Exchange differences
		outstanding reserve	purchase	reserve	investment reserve		cash flow hedges	on translating the
								financial statements of foreign operations
Balance as at April 1, 2020	12,22741	290.51	57.71	3575	49.95	10,087.74	(244.09)	588.32
Profit for the period						4,506.77		í
Other comprehensive income for the period						10.25	383.54	(20.07)	$\begin{array}{c} 23,093.30 \ 4,506.77 \ 373.72 \end{array}$
Dividend						(1,069.95)			1,069.95)
Transfer to retained earnings					(49.95)	49.95
Transfer to general reserve	2,020.34					(2,020.34)			í
Employee stock compensation expenses		290 44							290 44
Adjustments towards employees stock options	108.78	(108.78)							ł
Other changes during the year		(1.47)	(0.40)						(1.87)
Balance at March 31, 2021	14,356.53	470.70	57.31	35.75		11,564.42	139.45	568.25	27,192.41

The accompanying notes are an integral part of the consolidated financial statements. Summary of significant accounting policies - refer note 4

As per our report of even date

SHASHI
TADWALKAR PORINISIPRODISION
TADWALKAR PORINISIONALIZENSIS
CALLAR PORINISIONALIZENSIS For Walker Chandiok & Co LLP
Chartered Accountants
Firm Registration No.: 001076N/N500013 Membership No : 101797 Shashi Tadwalkar
Partner

Place: Pune
Date : April 27, 2022

Amit Atre
Amit Atre (Apr 27, 2022 17:04 GMT+5.5)

Parsistant Systams Limitat
Consolidated Statement of Changes in Equity for the Year Ended March 31, 2022

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

matter Praveen Kadle
Independent Director Sandeep Kalra
Executive Director and
Chief Executive Officer Dr. Anand Deshpande
Chairman and Managing
Director

Place: Pune
Date : April 27, 2022 DIN: 00016814 DIN: 02506494 DIN: 00005721

Place: Pune
Date : April 27, 2022 Place: Pune
Date : April 27, 2022

$\frac{SUMil\sqrt{GDD'}}{\text{SumB}}$ and $\frac{SMD}{S}$ and $\frac{SMD}{S}$ and $\frac{SMD}{S}$ and $\frac{SMD}{S}$ and $\frac{SMD}{S}$ and $\frac{SMD}{S}$ and $\frac{SMD}{S}$ and $\frac{SMD}{S}$ and $\frac{SMD}{S}$ and $\frac{SMD}{S}$ and $\frac{SMD}{S}$ and $\frac{SMD}{S}$ and $\frac{SMD}{S}$ and Membership No. A20507

Place: Pune
Date : April 27, 2022

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED MARCH 31, 2022

Nature and purpose of reserves

a) General reserve

b) Share options outstanding 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

g) Foreign currency translation reserve

tes forming part of consolidated financial statements

Nature of operations $\blacktriangleleft$

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 Company offers complete product life cycle services.

The Board of Directors approved the consolidated financial statements for the year ended March 31, 2022 and authorised for issue on April 27, 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 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.

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 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.

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 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 with expertise in Microsoft technologies, including Azure, business applications, workplace modernization, and Data and AI.

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.

otes forming part of consolidated financial statements

Basis of preparation $\overline{2}$

$2.1$ Historical cost convention

The 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 employee
stock options and initial given in exchange for goods and services. The accounting policies are consistently applied by the Group during the year 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 consolidated financial statements are prepared in accordance with Indian Accounting Standard (Ind AS), the provisions of the Companies Act, 2013 ('the Act') (to the extent notified) and
guidelines issued by the Secur Rules, 2015 and relevant amendment rules issued thereafter.

2.3 New and amended standards adopted by the Group

The Group has applied the following amendment to Ind AS for the first time in it's annual reporting period commencing 1 April 2021: Extension of COVID-19 related concessions - amendments to Ind AS 116

2.4 New amendments issued but not effective

2.5 Reclassifications consequent to amendments to Schedule III

Consequent to above, the Group has changed the classification/presentation of (i) current maturities of long-term borrowings (ii) security deposits, in the current 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 accrued were incl

.....
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)	March 31, 2021 (Previously Reported)	Increase / (Decrease)	March 31, 2021 (Restated)
Non-current assets
Loans	134.76	(134.76)
Other non-current financial assets	25.76	134.76	160.52
Current assets
Loans	71.26	(49.47)	21.79
Other current financial assets	2.467.23	49.47	2.516.70
Current liabilities
Other financial liabilities	390.17	(1.96)	388.21
Borrowings		1.96	1.96

3 Principles of consolidation

The consolidated financial statements of the Parent Company and its subsidiaries ("the Group") for the year ended March 31, 2022 are prepared in accordance with generally accepted accounting
principles applicable in India,

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 disclosed below. Control exists when the parent company has power over the entity, is exposed or has rights to variative members were inverse that the entity, and has the ability to affect those exturned with the entity. The variative stat

The 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, income and expenses after eliminating intra group balances and intra group transactions except where cost cannot be recovered. The unrealized profits or losses resulting from the intra group balances and intra group transa

The excess of the cost to the Company of its investment in a subsidiary and the Company's portion of equity of subsidiary on the date at which investment in the subsidiary is made, is described as goodwill and recognized separately as an asset in the consolidated financial statements. The excess of the Company's portion of equity of the acquired company over its cost is treated as gain on security and the financial statements. Goodwill arising on consolidation is not amortized. It is tested for impairment on a periodic basis and written off if found impaired.

The consolidated financial statements are prepared using uniform accounting policies for like transactions and other events in similar circumstances and necessary adjustments required for
deviations, if any, are made in th statements

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

Persistent Systems Limited
Notes forming part of consolidated financial statements
The subsidiary and associate companies considered in consolidated financial statements are as follows:

Name of the subsidiary/ associate	Ownership Percentage as at		Country of
			incorporation
	31 Mar 22	31 Mar 21
Persistent Systems, Inc.	100%	100%	USA
Persistent Systems Pte Ltd.	100%	100%	Singapore
Persistent Systems France SAS	100%	100%	France
Persistent Telecom Solutions Inc.	100%	100%	USA
Persistent Systems Malaysia Sdn. Bhd.	100%	100%	Malaysia
Aepona Group Limited	100%	100%	Ireland
Aepona Limited	100%	100%	UK.
Persistent Systems Lanka (Private) Limited	100%	100%	Sri Lanka
Persistent Systems Mexico, S.A. de C.V.	100%	100%	Mexico
Persistent Systems Israel Ltd.	100%	100%	srae
Persistent Systems Germany GmbH	100%	100%	Germany
PARX Werk AG	100%	100%	Switzerland
PARX Consulting GmbH	100%	100%	Germany
Youperience GmbH	100%	100%	Germany
Youperience Limited	100%	100%	United Kingdom
CAPIOT Software Private Limited (Acquired w.e.f. October 29, 2020)	100%	100%	India
CAPIOT Software Inc. (Acquired w.e.f. November 7, 2020)	100%	100%	USA
CAPIOT Software Pty Limited (Acquired w.e.f. November 7, 2020)	100%	100%	Australia
CAPIOT Software Pte Limited (Acquired w e f. November 7, 2020)	100%	100%	Singapore
Persistent Systems S.R.L. (Incorporated on March 23, 2021)	100%	100%	Italy
Software Corporation International (Acquired w e f October 5, 2021)	100%		USA
SCI Fusion360 LLC (Acquired w e f October 5, 2021)	100%		USA
Data Glove IT Solutions Limitada (Acquired w.e.f. March 1, 2022)	100%		Costa Rica
Klisma e Services India Pvt. Ltd. (Dissolved w.e.f August 10, 2021)		50%	India

The share of subsidiaries in the consolidated net assets, consolidated profit or loss and consolidated other comprehensive income is as follows:

Name of the Company	Share in Net assets		Share in Profit or (loss)		Share in Other Comprehensive Income (OCI)		Share in Total Comprehensive Income
	As a % of	Amount	As a % of	Amount	As a % of	Amount	As a % of consolidated	Amount
	consolidated net assets	(₹ million)	consolidated profit	(₹ million)	consolidated OCI	(₹ million)	Total Comprehensive Income	(₹ million)
Parent Company:
Persistent Systems Limited	85 43%	33,188.85	97.04%	6,858.66	102 47%	(288.48)	96.82%	6,570.18
Subsidiaries:
Persistent Systems, Inc.	9.23%	3,586.62	$-0.59%$	(41.42)			$-0.61%$	(41.42)
Persistent Systems Pte. Ltd.	0.08%	32.04	$-0.06%$	(4.24)			$-0.06%$	(4.24)
Persistent Systems France SAS	0.28%	110.09	-1.01%	(71.59)			$-1.05%$	(71.59)
Persistent Telecom Solutions Inc.	0.26%	101.13	1.50%	105.97			1.56%	105.97
Persistent Systems Malaysia Sdn. Bhd.	0.47%	181.95	0.82%	57.64			0.85%	57.64
Aepona Group Limited	0.09%	33.77	0.01%	(0.79)			$-0.01%$	(0.79)
Aepona Limited	$-0.39%$	(149.80)	1.81%	128.13			1.89%	128.13
Persistent Systems Lanka (Private) Limited	0.50%	193.15	1.09%	7673	$-2.47%$	6.96	1.23%	83.69
Persistent Systems Israel Ltd.	0.43%	168.19	0.00%	(0.31)			0.00%	(0.31)
Persistent Systems Mexico, S.A. de C.V.	0.05%	19.50	0.28%	19.83			0.29%	19.83
Persistent Systems Germany GmbH	2.25%	874.22	-4 49%	(317.07)			$-4.67%$	(317.07)
PARX Werk AG	0.52%	203.29	1.79%	126.31			1.86%	126.31
PARX Consulting GmbH	$-0.08%$	(32.44)	0.68%	48.25			0.71%	48.25
Youperience Limited	0.00%	0.51	0.43%	30.11			0.44%	30.11
Youperience GmbH	$-0.24%$	(91.55)	0.05%	3.28			0.05%	3.28
CAPIOT Software Private Limited	0.12%	48.02	$-0.39%$	(27.71)			$-0.41%$	(27.71)
CAPIOT Software Inc.	0.09%	36,60	0.22%	15.77			0.23%	15.77
CAPIOT Software Pty Limited	0.00%	0.78	$-0.06%$	(4.19)			$-0.06%$	(4.19)
CAPIOT Software Pte Limited	$-0.03%$	(10.40)	0.00%	(0.18)			0.00%	(0.18)
Persistent Systems S.R.L.	0.00%	(1.84)	$-0.04%$	(2.70)			$-0.04%$	(2.70)
Software Corporation International	0.55%	213.43	0.86%	60.76			0.90%	60.76
SCI Fusion360 LLC	0.25%	97.44	0.06%	4.20			0.06%	4.20
Data Glove IT Solutions Limitada	0.12%	47.51	0.03%	2.17			0.03%	2.17
Subtotal	100,00%	38,851,05	100,00%	7,067.59	100,00%	(281, 52)	100,00%	6,786.07
Exchange differences on translating the financial statements of foreign operations						138.96		138.96
Consolidation adjustments		(5, 168.85)
Amortization of Intangibles recognized on Business Combination				(342.51)				(342.51)
DTA on items recognised on consolidation				(5.44)				(5.44)
Dividend from subsidiaries				(65.33)				(65.33)
Others				249.55				249.55
Total		33,682,20		6,903.86	100.00%	(142, 56)		6,761,30

otes forming part of consolidated financial statements

$\mathbf{A}$ Critical accounting estimates

4.1 Use of estimates

4.2 Estimation of uncertainties relating to the global health pandemic from COVID-19:

The Group has considered all possible impacts of COVID-19 in the preparation of these financial statements, including but not limited to its assessment of, liquidity and going concern assumption, recoverable values of its these financial statements and believes that the impact of COVID-19 is not material to these financial statements and expects to recover the carrying amount of its assets. The impact of COVID-19
on the financial statements

4.3 Critical accounting estimates

a) Revenue recognition

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 proportion of the total efforts or costs to be expended. Efforts or costs expended to result above the person universal to measure progress towards completion. Provisions for estimated to measur

Further, the Group 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 eport from the customer, the Group is required to use its judgement to ascertain the income from revenue share on the basis of historical trends of
Customer revenue.

b) 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 Group 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

c) Business combination

d) Property, plant and equipment

Property, plant and equipment represent a significant proportion of the asset base of the Group. The charge in respect of depreciation is derived after determining an estimate of an asset's expected
useful life and the exp 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 Ind AS 116 requires lessees to determine the lease term as the non-cancellable penol of a lease adjusted with any option to extend or terminate the lease, it the use of such option to the use of such option to extend or te

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 Group'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 their realisation in cash and cash equivalents. and Based on the nature of products/ services and the time
between the acquisition of

b) Property, Plant and Equipment

es forming part of consolidated financial statements

c) Intangible assets

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

Individual assets whose cost does not exceed ₹ 5,000 are fully depreciated in the year of acquisition.

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

Intangible assets are amortized on a straight-line basis over their estimated useful lives 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.

f) Leases

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 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 plus any initial direct costs incurred and an estimate of costs to be incurred by the lessee in dismanding and removing the underlying asset or restoring the underlying asset or site on which it is

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 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 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 leases

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.

Group as a lessor

At the inception of the lease, the Group dassifies 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 le income over the lease term on a straight line basis.

g) Impairment of Non-financial assets

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 factors including operating identifies the lowest aggregation of assets that 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

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 GGUs exceeded the carrying value. An analysis of the calculation's sensitivity to a change in the key parameters (turnover and earnings multiples) did not identify any probable scenarios where the CGU's recoverable amount would fall below its carrying amount.

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 intial 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

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, o

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 at fair value through profit or loss (FVTPL)

s forming part of consolidated financial statements

Financial liabilitie

Financial liabilities at amortised cost

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

The ancient metallist and the state of caline of the statement of profit and metallist and the statement of profit and loss.
Fair value gains or losses on liabilities designated as FVTPL attributable to changes in own cred

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.

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 The South A 109. A financial lability (or a part of a financial liability) is derecognized from the Group's Balance Sheet when the children has been interested in the contract is discharged or cancelled or expires. On dere cumulative gain or loss is not recycled to statement of profit and 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 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

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 valu value, the carrying amounts approximate fair value due to the short maturity of these instruments.

Impairment of financial assets

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 revenues i on customers contrast to method to the contrast of the contrast the contrast the contrast in a contrast the contrast in a contrast in a contrast in a contrast in the contrast in a contrast in the contrast in the obligations in the contract. The Company allocates the transaction price to each distinct performance obligation based on the relative should be related to the substantial one can be contract. The Company allocates the tra 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 vari consideration is resolved.

s forming part of 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 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 eamed consideration that is conditional.

Contract liabilities

j) Government grants

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

Exchange differences

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

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 valuation using the proj subsequently.

Superannuation

es forming part of consolidated financial statements

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 statement of profit and loss. Expense on non-accumulating compensated absences 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 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.

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

(ii) Allocation of income and direct expenses

(iii) Unallocated items

Unallocated items include general corporate income and expense items which are not allocated to any business segment.

(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)

p) Provisions

...................................... adjusted to reflect the current best estimates.

Notes forming part of consolidated financial statements

q) Contingent liabilities

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

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

u) Dividend

v) Business combinations

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 Group 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 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 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 case

w) Goodwill/ Gain on bargain purchase

Notes forming part of consolidated financial statements

Share capital 5

	As at	As at
	March 31, 2022	March 31, 2021
	In ₹ Million	In ₹ Million
Authorized shares (No. in million)
200 (Previous year: 200) equity shares of ₹10 each	2,000.00	2,000.00
	2,000.00	2,000,00
ssued, subscribed and fully paid-up shares (No. in million)
76.43 (Previous year: 76.43) equity shares of ₹10 each	764.25	764.25
ssued, subscribed and fully paid-up share capital	764.25	764.25

The Group's objective for capital management is to maximise shareholder value, safeguard business continuity and support the growth of the Group.
The Group determines the capital requirement based on annual operating plans

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

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

The recent planet of the number of ondred cutotaming and the amount of ondre cupital is settled on the				(In Million)
	As at		As at
	March 31, 2022		March 31, 2021
	No of shares	Amount ₹	No of shares	Amount ₹
Number of shares at the beginning of the year	76.43	764.25	76.43	764.25
Less: Changes during the period		۰	$\overline{\phantom{0}}$
Number of shares at the end of the year	76.43	764.25	76.43	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

The Board of Directors of Parent Company declared interim dividend of ₹ 20 per share on January 20, 2022 on the face value of ₹ 10 each; for the Financial
Year 2021-22.

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 prefrential amounts exist currently

$\mathbf{c}$ 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
	March 31, 2022	March 31, 2021
	No in Million	No in Million
Equity shares bought back	3.575	3.575

$\mathbf{d}$ Details of shareholders holding more than 5% shares in the Group

Name of the shareholder*	As at March 31, 2022		As at March 31, 2021
	No. in million	% Holding	No. in million	% Holding
Dr. Anand Deshpande and Mrs. Sonali Anand Deshpande	22.97	30.06	22.96	30.04
Schemes of HDFC Mutual Fund	3.45	4.51	5.37	7.03

* 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.

$e)$ Details of shares held by promoters

As at March 31, 2022

Promoter Name	No. of shares	Change during the		No. of shares % of Total Shares % change during
	at the	vear	at the end of		the year
	beginning of		the vear
	the year
Dr. Anand Suresh Deshpande	22.849.840	11,000	22.860,840	29.91%	0.01%
Mrs. Chitra Hemadri Buzruk	469.400	$\blacksquare$	469.400	0.61%
Dr. Mukund Suresh Deshpande	400.025	$\blacksquare$	400.025	0.52%
Mrs. Sonali Anand Deshpande	112,000	$\blacksquare$	112,000	0.15%
Mrs. Sulabha Suresh Deshpande	46.000	(40.000)	6.000	0.01%	$(0.05)$ %
Mr. Arul Anand Deshpande	10,000		10,000	0.01%
Ms. Gavatri Hemadri Buzruk	10,000	$\blacksquare$	10.000	0.01%
Mr Hemadri N Buznik	7.820	$\blacksquare$	7.820	0.01%
Mr. Suresh Purushottam Deshpande	5,000	$\blacksquare$	5.000	0.01%
Mr. Padmakar Govind Khare	880		880	0.00%

Promoter Name	No. of shares	Change during the		No. of shares % of Total Shares % change during
	at the	vear	at the end of		the vear
	beginning of		the year
	the year
Dr. Anand Suresh Deshpande	22.848.840	1.000	22.849.840	29.90%	0.00%
Mrs. Chitra Hemadri Buzruk	469.400	۰.	469.400	0.61%
Dr. Mukund Suresh Deshpande	376.825	23.200	400,025	0.52%	0.03%
Mrs. Sonali Anand Deshpande	112,000	۰.	112,000	0.15%
Mrs. Sulabha Suresh Deshpande	66.000	(20,000)	46.000	0.06%	$(0.03)$ %
Mr. Arul Anand Deshpande		10,000	10,000	0.01%	0.01%
Ms. Gavatri Hemadri Buzruk		10.000	10.000	0.01%	0.01%
Mr. Hemadri N Buzruk	7,820	$\sim$	7.820	0.01%
Mr. Suresh Purushottam Deshpande	5,000	٠	5,000	0.01%
Mr. Padmakar Govind Khare	780	100	880	0.00%	0.00%

6.1 Property, plant and equipment									(In ₹ Million)
	Land Freehold	Buildings	Computers	equipments Office	equipment Plant and	improvements Leasehold	Furniture and Vehicles fixtures		Total
Gross block (At cost)
As at April 1, 2021	22191	2,455 09	2,943.59	9651	41628	44 29	69980	724	7884
Additions		1.35	,068.37	536	7039	271	6359		211.77
Additions through business combinations (refer note 44)			2113	1.35	415	í	048	0.03	27 14
Disposals			3203	4.24	9021	0.77	3493		16218
reporting currency Effect of foreign currency translation from functional currency to	(0.29)	(1.28)	287	1.40	(0.72)	146	524	1	8.68
As at March 31, 2022	221 62	2,455 16	4.00393	10038	1,399.89	4769	734.18	727	8,970 12
Accumulated Depreciation
As at April 1, 2021		1,18345	2,28984	8641	.224.51	3984	65428	498	5,4833
Charge for the year		99.08	50293	711	55 60	4.55	4987	0.97	720 11
Disposals			30 16	4.24	9005	0.69	3452		159.66
reporting currency Effect of foreign currency translation from functional currency to		(0.55)	531	124	(125)	$\frac{5}{1}$	263		869
As at March 31, 2022		1,28198	2,76792	90.52	1.18881	45.01	67226	595	6,05245
Net block
As at March 31, 2022		221 62 1.173 18	1,236.01	986	211.08	268	61.92	132	2,917.67
As at March 31, 2021	$\frac{221.91}{5}$	1,271 64	65375	10.10	19177	445	45.52	226	2,401.40

(This space is intentionally left blank)

Persistent Systems Limited
Notes forming part of consolidated financial statements

b. 1 Property, plant and equipment									(In ₹ Million)
	Land -		Buildings Computers	Office	Plant and	Leasehold	Furniture	Vehicles	Total
	Freehold			equipments	equipment	improvements	and fixtures
Gross block (At cost)
As at April 1, 2020	22137	2,45204	2,457 77	93.20	1.3994'	4592	693 12	724	7,370.07
Additions		0.67	559.91	617	56.41	1	3627		65943
Additions through business combinations			2732	0.69	0.12		720		3533
Disposals			8029	223	3987	3.81	3539		161.59
Effect of foreign currency translation from functional currency to reporting currency	0.54	2.38	(21.12)	(1.32)	0.21	218	(1.40)		(18.53)
As at March 31, 2021	221.91	2,455.09	2,943.59	96.51	1,416.28	44.29	699.80	724	7,884.71
Accumulated Depreciation
As at April 1, 2020		1,08358	2,09205	80.57	1,206.20	3551	643.51	4.05	5,145.47
Additions through business combination			2564	0.34	0.05	$\mathbf{I}$	2.30		2833
Charge for the year		99.10	25853	838	54.40	579	4153	0.93	468 66
Disposals		ï	6710	2.02	3656	2.94	3123		13985
Effect of foreign currency translation from functional currency to reporting currency		0.77	(19.28)	(0.86)	0.42	1.48	(1.83)		(19.30)
As at March 31, 2021		1,183.45	2,289.84	86.41	1,224.51	39.84	65428	4.98	5,483.31
Net block
As at March 31, 2021	221.91	1,271 64	653.75	10.10	191.77	445	45.52	226	2,401.40
As at March 31, 2020	22137	1,368.46	365.72	12.63	193.21	10.41	49.61	319	2,224 60

. . .








; ;









i

a) Gross block as on March 31, 2022 ₹ 1,455.94 million (Previous year ₹ 1,454.60 million)
b) Depreciation charge for the year ₹ 59.07 million (Previous year ₹ 59.04 million)

c) Accumulated depreciation as on March 31, 2022 ₹ 617.14 million (Previous year ₹ 558.07 million)
d) Net book value as on March 31, 2022 ₹ 838.80 million (Previous year ₹ 896.53 million)

(This space is intentionally left blank)

Persistent Systems Limited

Notes forming part of consolidated financial statements

ŀ ś $\frac{1}{2}$ nlant ar $\ddot{\mathbf{t}}$ $610r$

6.2 Capital work in progress					$(ln \bar{z}$ Million)
				As at	As at
				March 31, 2022 March 31, 2021
				In ₹ Million	In ₹ Million
Capital work in progress				1,07120	12181
				1,071.20	121.81
P) ageing schedule 6.2 Capital work in progress (CWI
					(In ₹ Million)
		Amount in CWIP for a period of
	Less than 1 year	1-2 years	2-3 years	More than 3	Total
				years
Projects in progress	1,07120				1,07120
As at March 31, 2022	1,071 20				1,071.20
					(In ₹ Million)
		Amount in CWIP for a period of
	Less than 1 year	1-2 years	2-3 years	More than 3	Total
				years
Projects in progress	117.95	386			121.81
As at March 31, 2021	117.95	86 ෆ			121.81

6.3 Right of use assets

			(In ₹ Million)
	Leasehold Land	Office premises	Total

Gross block (At cost)
As at April 1, 2021	37.50 i.	1,208 13	1,245 63
Additions during the period		83131	831.31
Disposals		201 25	201 25
Effect of foreign currency translation of foreign operations from functional currency to reporting currency		3.56	3.56
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	$\blacksquare$	(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
As at March 31, 2021	36.32	816.26	852.58

			(In ₹ Million)
	Leasehold Land	Office premises	Total
Gross block (At cost)
As at April 1, 2020	37.50	796.75	834.25
Additions during the period		584 67	584 67
Acquistion	$\blacksquare$	2.52	2.52
Disposals		165.16	165 16
Effect of foreign currency translation of foreign operations from functional currency to		(10.65)	(10.65)
reporting currency
As at March 31, 2021	37.50	1,208.13	1,245.63
Accumulated Depreciation
As at April 1, 2020	0.60	266 84	267 44
Charge for the year	0.58	250.88	251 46
Disposals	۰	121.83	121.83
Effect of foreign currency translation of foreign operations from functional currency to reporting currency	$\blacksquare$	(4.02)	(4.02)
As at March 31, 2021	1.18	391.87	393.05
Net block
As at March 31, 2021	36.32	816.26	852.58
As at March 31, 2020	36.90	529.91	566,81
6.4 Goodwill
		$A - 4$	(In ₹ Million) $0 - 1$

	As at	As at
		March 31, 2022 March 31, 2021
Cost
Balance at beginning of year	8594	88.94
Additional amounts recognised from business combinations (refer note 44 a & b)	2.636.81
Effect of foreign currency translation of foreign operations from functional currency to reporting currency	67.47	(3.00)
Balance at end of year	2.790.22	85.94

Persistent Systems Limited
Notes forming part of consolidated financial statements
6.5 Other Intangible assets

				(In ₹ Million)
	Software	Acquired	Provisional	Total
		contractual	intangible assets
		rights
Gross block
As at April 1, 2021	2.912.77	5.744.93		8,657.70
Additions	62 65	182 63		245 28
Additions through business combination (refer note 44)		980 16	6.651.74	7.631.90
Disposals	244	0.04		2.48
Effect of foreign currency translation from functional currency to reporting currency	58.47	(94.15)	44.56	8.88
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 period	70.76	526.18	54.56	651.50
Disposals	1.78	0.01		1.79
Effect of foreign currency translation from functional currency to reporting currency	58.54	134 47	073	19374
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
As at March 31, 2021	175.97	1,053 53		1,229.50

			(In ₹ Million)
	Software	Acquired	Total
		contractual rights
Gross block
As at April 1, 2020	2.779.57	5,214.42	7,993.99
Additions	185.76	256.64	442 40
Additions through business combination		363.16	363 16
Disposals	2.94		2.94
Effect of foreign currency translation from functional currency to reporting currency	(49.62)	(89.29)	(138.91)
As at March 31, 2021	2,912.77	5,744.93	8,657.70
Accumulated Amortization
As at April 1, 2020	2,732.72	3,826 34	6,559.06
Charge for the year	5974	975.64	1.035.38
Disposals	2.89		289
Effect of foreign currency translation from functional currency to reporting currency	(52.77)	(110.58)	(163.35)
As at March 31, 2021	2,736.80	4,691.40	7,428.20
Net block
As at March 31, 2021	175.97	1,053.53	1,229.50
As at March 31, 2020	46.85	1.388.08	1,434.93

6.6 Depreciation and amortization
		(In ₹ Million)
		For the year ended
		March 31, 2022 March 31, 2021
On Property, Plant and Equipment	720.11	468.66
On Right of Use assets	288 51	251.46
On Other Intangible assets	65150	1,035.38
	1,660.12	1,755.50

Non-current financial assets : Investments

	As at March 31, 2022 In ₹ Million	As at March 31, 2021 In ₹ Million
Investments carried under equity accounting method
Unquoted Investments Investments in equity instruments
In associates
Klisma e-Services Private Limited [Holding Nil (Previous year 50%)] # Nil (Previous year: 0.005 million) shares of ₹10 each, fully paid up		0.05
Less: Writeoff / Impairment	$\blacksquare$	(0.05) $\blacksquare$
Total investments carried equity accounting method (A)
Investments carried at amortised cost
Quoted Investments In bonds	2,801.81	2,557.92
[Market value ₹ 2,863.32 million (Previous year ₹ 2,727.32 million)]
Add: Interest accrued on bonds Total investments carried at amortised cost (B)	77.48 2,879.29	72.88 2,630.80
Designated as fair value through profit and loss
Unquoted Investments - Investments in mutual funds
Fair value of long term mutual funds (refer Note 7a)	836.42	806.99
	836,42	806.99
Investments in Common Stocks / Preferred Stocks - Others*
Ciqual Limited [Holding 2 38% (Previous year 2 38%)]
0.04 million (Previous year: 0.04 million) shares of GBP 0.01 each, fully paid up	15.16	1473
Add / (less) : Change in fair value of investment	(15.16)	(14.73)
Altizon Systems Private Limited	6.00	6.00
3,766 equity shares (Previous year : 3,766 equity shares) of ₹ 10 each, fully paid up	6.00	6.00
Hygenx Inc.	15 16	14.62
0.25 million (Previous year: 0.25 million) Preferred stock of \$ 0.001 each, fully paid up
Add / (less) : Change in fair value of investment	(15.16)	(14.62)
	٠	۰
OpsDataStore Inc.		14.62
Nil (Previous year: 0.20 million) Preferred stock of \$0.001 each, fully paid up Add / (less) : Change in fair value of investment		(14.62)

Trunomi Inc. 0.28 million (Previous year: 0.28 million) Preferred stock of \$ 0.0002 each, fully paid	18.95	18 28
up	18.95	18.28

Ampool Inc.		18.28
Nil (Previous year: 0.55 million) Preferred stock of \$0.4583 each, fully paid up Add / (less) : Change in fair value of investment		(18.28)
	Ĭ.	$\sim$
Cazena Inc. ^
Nil (Previous year: 0.59 million Preferred Stock of \$ 0.0001 each), fully paid up		146.22
Monument Bank 0.024 million (Previous year: Nil) Stock of GBP 50 each), fully paid up	123.61
	142.56	164 50

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.

Persistent Systems Limited
Notes forming part of consolidated financial statements
7. Non-current financial assets : Investments (contd)

	As at March 31, 2022 In ₹ Million	As at March 31, 2021 In ₹ Million

DxNow 0.17 million Shares fully paid up (Previous year: 1 convertible note of USD 125,000 each, fully paid up	9.47	9.14
Add / (less) : Change in fair value of investment	(9.47)	(9.14)

Akumina Inc. 0.40 million Preference shares of \$ 0.443 each (Previous year : 1 convertible note of USD 146,429 each, fully paid up)	13.45	12.98
	13.45	12.98
- Investments in Convertible Notes Ustyme Nil (Previous year : 1) convertible note of USD 250,000 each, fully paid up		18.28
Add / (less) : Change in fair value of investment		(18.28)

Total Investments carried at Fair Value (C)	998.43	990.47
Total investments $(A) + (B) + (C)$	3.877.72	3,621.27
Aggregate amount of impairment in value / change in fair value of investments	39.79	89.72
Aggregate amount of quoted investments	2.879.29	2.630.80
Aggregate amount of unguoted investments	1.038.22	1,080.19

* Investments, where the Group 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 othe

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

	As at March 31, 2022	As at March 31, 2021
	In ₹ Million	In ₹ Million
Axis Mutual Fund	471.15	400.50
IDFC Mutual Fund	365.27	370 31
Sundaram Mutual Fund	$\blacksquare$	36 18
	836.42	806.99

Persistent Systems Limited
Notes forming part of consolidated financial statements
8. Non-current financial assets : Loans

o Non current inidiigidi assets . Lodiis

	As at	As at
	March 31, 2022	March 31, 2021
	In ₹ Million	In ₹ Million
Carried at amortised cost
Other loans and advances
Unsecured, considered good - Loan to ESOP trust	3,522.00
Unsecured, credit impaired	0.58	23.63
	3.522.58	23.63
Less: Impairment of non-current loans	(0.58)	(23.63)
	3.522.00
	3.522.00

9. Other non-current financial assets

	As at	As at
	March 31, 2022 In ₹ Million	March 31, 2021 In ₹ Million
Deposits with banks (refer note 15)	3.19	24 42
Add: Interest accrued but not due on bank deposits (refer note 15)	0.17	1.34
Deposits with banks (Carried at amortised cost)	3.36	25.76
Deposits with financial institutions
Unsecured, credit impaired	430.00	430.00
Add: Interest accrued on deposit with financial institutions	0.98	0.98
Less: Credit impaired (refer note 47)	(430.98)	(430.98)

Unsecured, considered good	100.00
Add: Interest accrued	0.41
	100.41
Security deposits	236.97	134.76
and the contract of the contract of the contract of the contract of the contract of the contract of the contract of the contract of the contract of the contract of the contract of the contract of the contract of the contra	340.74	160.52 $\ddotsc$

* Out of the balance, fixed deposits of ₹ 3.03 million (Previous year: ₹ 24.09 million) have been earmarked against credit
facilities and bank guarantees availed by the Group.

10. Deferred tax asset (net) *

	As at	As at
	March 31, 2022	March 31, 2021
	In ₹ Million	In ₹ Million
Deferred tax liabilities
Differences in book values and tax base values of block of property, plant and	89.31
equipment and intangible assets
Capital gains	51.11	61.06
Others	7.54	66.47
	147.96	127.53
Deferred tax assets
Provision for leave encashment	224.94	184.65
Provision for long service awards	134.29	117.05
Allowance for expected credit loss	43.27	93.49
Differences in book values and tax base values of block of property, plant and	170.18	63.43
equipment and intangible assets
Brought forward and current year losses	99.41	43.77
Tax credits	407.13	435.71
ROU asset and lease liability	31.71	31.74
Provision for shared based payments to employees	48.56	40.28
Others	111.19	154.98
	1.270.68	1.165.10
Deferred tax liabilities after set off
Deferred tax assets after set off	1,122.72	1,037.57

* 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

11. Other non-current assets

	As at March 31, 2022 In ₹ Million	As at March 31, 2021 In ₹ Million
Capital advances (Unsecured, considered good)	104.95	60.54
Balances with government authorities (refer note 42)	296.55	296.55
Prepayments	130.11	84 43
	531.61	441 52

Notes forming part of consolidated financial statements

Movement in deferred tax assets (net) during the year ended March 31, 2022

	As at April 1, 2021	Charge/ (Credit) in statement of Profit or loss	Credit/ (Charge) in other comrpehensive income	As at March 31, 2022
Deferred tax liabilities
Differences in book values and tax base values of block of Property, plant and equipment and other intangible assets		89.31		89.31
Capital gains (net)	61.06	(9.95)		51.11
Cash flow hedges	46.90		(32.84)	14.06
Others	19.57	(12.03)		7.54
	127.53	67.33	(32.84)	162.02
Deferred tax assets
Differences in book values and tax base values of block of Property, plant and equipment and other intangible assets	63.43	106.75		170.18
Provision for leave encashment	184.65	40.29		224.94
Provision for long service awards	117.05	17.24		134.29
Allowance for expected credit loss	93.49	(48.51)	$\blacksquare$	44.98
Tax credit	435 71	(28.58)	$\blacksquare$	407.13
Right of use asset and lease liability	31.74	(0.03)	$\blacksquare$	31.71
Others	239.07	32 45		271 52
	1,165.12	119.62	٠	1,284.74
	1,037.59	52.29	32.84	1,122.72

Movement in deferred tax assets (net) during the year ended March 31, 2021

	As at April 1, 2020	Charge/ (Credit) in statement of Profit or loss	Credit/ (Charge) in other comrpehensive income	As at March 31, 2021
Deferred tax liabilities
Differences in book values and tax base values of block of Property, plant and equipment and other intangible assets	120.97	(120.97)
Capital gains (net)	76.67	(15.61)		61.06
Cash flow hedges			46.90	46.90
Others	21.63	(2.06)		19.57
	219.27	(138.64)	46.90	127.53
Deferred tax assets
Differences in book values and tax base values of block of Property, plant and equipment and other intangible assets	91.81	(28.38)		63.43
Provision for leave encashment	127.70	56.95		184.65
Provision for long service awards	83.27	33.78		117.05
Allowance for expected credit loss	62.50	30.99		93.49
Tax credit	328.80	106.91		435 71
Right of use asset and lease liability	37.29	(5.55)		31.74
Cash flow hedges	82.10		(82.10)
Others	365 89	(126.82)		239.07
	1,179.35	67.87	(82.10)	1,165.12

	960.08	(70.77)	(35.20)	1,037.59

Current financial assets : Investments

	As at	As at
	March 31, 2022	March 31, 2021
	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 12a)	4.346.91	6.374.95
	4.346.91	6.374.95
Total carrying amount of investments	4.346.91	6,374.95
Aggregate amount of unquoted investments	4.346.91	6,374 95

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

	As at	As at
	March 31, 2022	March 31, 2021
	In ₹ Million	In ₹ Million
Aditya Birla Sun Life Mutual Fund	88365	1.011 03
Axis Mutual Fund	672.70	824.68
Kotak Mutual Fund	521.63	478.21
Nippon India Mutual Fund (formeny known as Reliance Mutual Fund)	472.88
IDFC Mutual Fund	457.54	911.72
DSP Mutual Fund	443 20	37.38
ICICI Prudential Mutual Fund	399.94	710.33
UTI Mutual Fund	337.68	723.19
SBI Mutual Fund	120.01	166.36
Sundaram mutual fund	37.68
HDFC Mutual Fund		963.10
L&T Mutual Fund		511.71
PGIM India Mutual Fund (formerly known as DHFL Pramerica Mutual Fund)		37.24
	4.346.91	6,374.95

13. Trade receivables

	As at	As at
	March 31, 2022	March 31, 2021
	In ₹ Million	In ₹ Million
Unsecured, considered good	9,484.29	5.708 97
Unsecured, credit impaired	165.78	271 64
	9.650.07	5.980 61
Less : Allowance for expected credit loss	(165.78)	(271.64)
	9,484.29	5,708 97

	9,484.29	5,708.97

Trade receivables Ageing Schedule							In ₹ Million
	Current but not		Outstanding for following periods from due date of payment				Total
	due	Less than 6	$6$ months $-1$	1-2 years	2-3 years	More than 3
		Months	year			years
Jndisputed Trade receivables - considered good	7,316 44	2,066.68	64.91	622	14.56	15.48	9,48429
Jndisputed Trade receivable - credit impaired		24 94	71.10	13.21	40.29	16.24	165.78
As at March 31, 2022	7.316.44	2,091 62	136.01	1943	54.85	31.72	9,650.07
							In ₹ Million
	Current but not		Outstanding for following periods from due date of payment				Total
	due	Less than 6	$6$ months $-1$	1-2 years	23 years	More than 3
		Months	year			years
Indisputed Trade receivables - considered good	3,81533	1,787 43	106.21				5,70897
Jndisputed Trade receivable - credit impaired		5914	5455	74.55	35.53	4787	27164
As at March 31, 2021	3,815.33	1.846.57	160.76	7455	35.53	47.87	5,980.61
		(This space is intentionally left blank)

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Persistent Systems Limited
Notes forming part of consolidated financial statements

Cash and cash equivalents

	As at	As at
	March 31, 2022	March 31, 2021
	In ₹ Million	In ₹ Million
Cash and cash equivalents as presented in cash flow statement
Cash in hand	0.24	0.41
Balances with banks
On current accounts #	2.337.96	1.583 20
On saving accounts	1.64	1.33
On Exchange Earner's Foreign Currency accounts	259 20	208.57
On deposit accounts with original maturity less than three months		62579
On Escrow account**	378.95
	2.977.99	2.419.30

Out of the cash and cash equivalent balance as at March 31, 2022, the Group can utilise ₹ 35,75 Million (Previous
year: ₹ 154,39 Million) only towards certain predefined activities specified in the agreement,

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

Bank balances other than cash and cash equivalents

	As at	As at
	March 31, 2022	March 31, 2021
	In ₹ Million	In ₹ Million
Deposits with banks*	5,986.55	7.108.47
Add: Interest accrued but not due on deposits with banks	180 46	303 99
Deposits with banks (carried at amortised cost)	6.167.01	7,412.46
Less: Deposits with maturity more than twelve months from the balance sheet date disclosed under other non-current financial assets (refer note 9)	(3.19)	(24.42)
Less: Interest accrued but not due on non-current deposits with banks (refer note 9)	(0.17)	(1.34)
	6.163.65	7.386.70
Balances with banks on unpaid dividend accounts**	2.94	3.00
	6.166.59	7,389.70

* Out of the balance, fixed deposits of ₹ 644.36 million (Previous year : ₹ 651.80 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
		March 31, 2022 March 31, 2021
	In ₹ Million	In ₹ Million
Loan to related parties (Unsecured, credit impaired) (refer note 37)
Klisma e Services Private Limited		27.43
	i.	27 43
Less: Write off / Impairment	$\blacksquare$	(27.43)
	ä,

Loan to others (Unsecured, credit impaired) LHS Solution Inc.	22.78	21.90
Interest accrued but not due at amortised cost	1.72	1.72
Less: Impairment	(24.50)	(23.62)


Other advances	16.10	21.79

	16.10	21.79
17. Other current financial assets

	As at	As at
	March 31, 2022 March 31, 2021
	In ₹ Million	In ₹ Million
Derivative instruments at fair value through OCI
Cash flow hedges
Foreign exchange forward contracts	84 59	294 46
Carried at amortised cost
Advances to related parties (Unsecured, credit impaired)
Unsecured, credit impaired		0.81
Less: Write off / Impairment		(0.81)
	ä,	۷

Carried at amortised cost Security deposits		49.47

Unbilled revenue	3,130.31	2,172.77
	3,214.90	2,516.70

18. Other current assets
	As at	As at
		March 31, 2022 March 31, 2021
	In ₹ Million	In ₹ Million
Unsecured, considered good
Advances to suppliers
Advances recoverable in cash or kind or for value to be received	1.345.41	815.19

Excess fund balance with Life Insurance Corporation (refer note 31)	42.19	11308
Other advances
VAT receivable (net)	3.71	97.19
Service tax and GST receivable (net) (refer note 42)	561.59	1,058.26
	565 30	1,155.45

	1,952.90	2,083.72

19. Non-current financial liabilities : Borrowings

	As at	As at
	March 31, 2022	March 31, 2021
	In ₹ Million	In ₹ Million
Borrowings carried at amortised cost
Term loans
Indian rupee loan from others	5.55	7.39
Interest accrued but not due on term loans	0.08	0.11
Foreign currency loan from others	4.319.72	38.73
	4.325.35	46.23
Less: Current maturity of long-term borrowings	(1,524.48)	(1.85)
Less: Current maturity of interest accrued but not due on term loan	(0.08)	(0.11)
	(1.524.56)	(1.96)
	2.800.79	44.27

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

Loan I - amounting to ₹ 5.55 million (Previous year ₹ 7.39 million) with Interest payable @ 3% per annum repayable in ten equal
annual installments over a period of ten years commencing from October 2015.

Loan II - amounting to ₹ 37.54 million (Previous year ₹ 38.73 million). The interest free loan is given under a Covid-19 scheme for
medium and small scale Industries by the Government of Switzerland to a subsidiary compan years from March 2020

Loan III - amounting to ₹4,282.18 million (Previous year:Nil). The Parent Company has provided a Letter of Comfort to the Lendors.
Key terms of loan are as below:

Repayment terms	Rs. Million	Interest rate
Loan 1: Repayable over a period of 3 years in equal instalments commencing from		1.629 53 SOFR + 155 bps
November 2021
Loan 2: Repayable over a period of 3 years in equal instalments commencing from April 2022		2.652.65 SOFR + 145 bps
	4.282.18

Non-current financial liabilities : Lease liabilities (refer note 36)

	As at	As at
	March 31, 2022	March 31, 2021
	In ₹ Million	In ₹ Million
Lease liabilities	1.456.87	938.17
Less: Current portion of lease liabilities	(342.58)	(222.00)
	1.114.29	716.17
Movement of lease liabilities
	For the year ended
	March 31, 2022	March 31, 2021
	In ₹ Million	In ₹ Million
Opening balance	938.17	662 42
Additions	831.31	587.19
Deletions	(42.81)	(43.33)
Add: Interest recognised during the year	84.06	57.53
Less: Payments made	(350.83)	(319.11)
Translation differences	(3.03)	(6.53)
Closing balance	1,456.87	938.17

Non current liabilities : Provisions

	As at	As at
	March 31. 2022	March 31, 2021
	In ₹ Million	In ₹ Million
Provision for employee benefits
- Long service awards	245.54	240.94
	245.54	240.94

22 Trade payables

	As at March 31, 2022 In ₹ Million	As at March 31, 2021 In ₹ Million
Trade pavables
- Dues of small enterprises and micro enterprises	10.30	30.20
- Dues of creditors other than small enterprises and micro enterprises	4.288 41	2.703.24
	4 298 71	273344

Disclosure of payable to vendors as defined under the "Micro, Small and Medium Enterprise Development Act, 2006" is based on Disclosure of payable to vendors as defined under the "Micro, Small and Medium Enterprise Development Act, 2006" is based on information available with the Parent Company regarding the status of registration of such vendor

hedule Trade payables ageing scl					In ₹ Million
	Less than 1 year	Outstanding for following periods from due date of payment 1-2 years	2-3 years	More than 3 years	Total
licro enterprises and small Total outstanding dues of m enterprises	10.30				10.30
Total outstanding dues of creditors other than micro prises enterprises and small enter	3,93750	30379	1451	32.61	4,28841
As at March 31, 2022	3,94780	30379	14.51	32.61	4,298.71
					In ₹ Million
	Less than 1 year	Outstanding for following periods from due date of payment 1-2 years	2-3 years	More than 3	Total
Total outstanding dues of micro enterprises and small enterprises	30.20			years	30.20
Total outstanding dues of creditors other than micro prises enterprises and small enter	255262	115.72	68	2791	2,70324
As at March 31, 2021	2,582.82	115.72	ဝီ ၁		27.91 2,733.44

23. Other current financial liabilities

	As at	As at
	March 31, 2022	March 31, 2021
	In ₹ Million	In ₹ Million
Capital creditors	204.49	237.83
Accrued employee liabilities	144.61	127.50
Unpaid dividend*	2.94	3.00
Other liabilities	8.41	7.96
Payable to selling shareholders (refer note 44)	3.901.75	11.92
Less: Non-current portion of Payable to Selling Shareholders	(2.088.60)	٠
	1.813.15	11.92
	2.173.60	388 21

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

24 Other current liabilities

	As at	As at
	March 31, 2022	March 31, 2021
	In ₹ Million	In ₹ Million
Unearned revenue	978.32	966.07
Advance from customers	43.21	93.67
Other pavables
- Statutory liabilities	491.79	296.20
- Other liabilities*	58.40	159.01
	1,571.72	1,514.95

*Includes balance of ₹ 35.64 million (Previous year: ₹ 154.16 million ) to be utilised against certain predefined activities specified
in the agreement.

25. Current liabilities : Provisions

	As at	As at
	March 31, 2022	March 31, 2021
	In ₹ Million	In ₹ Million
Provision for employee benefits
Gratuity (refer note 31)	9.96	37.78
- Leave encashment	975.49	815.28
- Long service awards	24.54	17.19
- Other employee benefits	2.939.67	1,607.54
	3.949.66	2,477.79

Notes forming part of consolidated financial statements

Revenue from operations (net)

		For the year ended
	March 31, 2022 In ₹ Million	March 31, 2021 In ₹ Million
Software services	55,721 12	40,158.83
Software licenses	1.386.34	1,720.05
	57,107.46	41,878.88

The table below presents disaggregated revenues from contracts with customers by segments, geography and type. The Group believes that this disaggregation best depicts how the nature, amount, timing and uncertainty of revenues and cash flows are affected by industry, market and other economic factors

	For the year ended March 31, 2022 In ₹ Million	For the year ended March 31, 2021 In ₹ Million

Revenue by industry segments
BFSI	18.063.65	12.857 05
Healthcare & Life Sciences	11.842.75	8.104.24
Technology Companies and Emerging Verticals	27,201.06	20.917.59
Total	57,107.46	41,878.88
Geographical disclosure
India	6,028 37	3,512.59
North America	44.812.10	33.861 61
Rest of the World	6.266.99	4.504.68
Total	57.107.46	41.878.88
Customers' Industry wise disclosure
IP Led	6.754.69	18,986.36
Offshore	32,062.36	15.925.78
Onsite	18,290.41	6,96674
Total	57,107.46	41,878.88

The remaining performance obligation disclosure provides the aggregate amount of the transaction price yet to be recognized as at the end of the reporting period and an explanation as to when the Company expects to recognize these
amounts in revenue. Applying the practical expedient as given in Ind AS 115, the Company has not disclos remaining performance obligation-related disclosures for contracts where the revenue recognized corresponds directly with the value to the customer of the entity's performance completed to date, typically those contracts where invoicing is
on time and material and unit of work-based contracts. Remaining performance obligation estimates a change and are affected by several factors, including terminations, changes in the scope of contracts, periodic revalidations, adjustment for revenue that has not materialized and adjustments for currency.

While disclosing the aggregate amount of transaction price yet to be recognised as revenue towards unsatisfied (or
partially) satisfied performance obligations, along with the broad time band for the expected time to recog revenues, the Group has applied the practical expedient in Ind AS 115. Accordingly, the Group has not disclosed the aggregate transaction price allocated to unsatisfied (or partially satisfied) performance obligations which pertain to contracts where revenue recognised corresponds to the value transferred to customer typically involving material, outcome based and event based contracts.

During the year, ₹ 2,172.77 million (Previous Year: ₹ 1,991.99 million) of opening unbilled revenue (contract assets) has been reclassified to trade receivables upon billing to customers on completion of milestones.

During the year, the Company recognised revenue of ₹ 937.81 million (Previous Year: ₹ 799.81 million) arising from opening unearned revenue (contract liabilities).

In respect of the contracts wherein the transaction price is in the form of revenue share, the estimated revenue for the customer is considered based on the historical trends and management's judgement with respect to customer business. The estimated revenue from these contracts included in the total revenue for the year is ₹ 622.86 million (Previous Year: ₹ 923.81 million).

Persistent Systems Limited
Notes forming part of consolidated financial statements
27. Other income

	For the year ended
	March 31, 2022 In ₹ Million	March 31, 2021 In ₹ Million
Interest income
On deposits carried at amortised cost	315.69	388.77
On Others	284.53	169.93
Other non operating income
Foreign exchange gain (net)	269.41	33.81
Profit on sale of property, plant and equipment (net)	12.45	1.34
Net profit on sale/ fair valuation of financial assets designated as FVTPL	354.30	346.74
Excess provision in respect of earlier years written back	66.00	41.79
Miscellaneous income	137 17	95.34
	1.439 55	1.077.72

28. Personnel expenses

	For the year ended
	March 31, 2022 In ₹ Million	March 31, 2021 n ₹ Million
28.1 Employee benefits expense
Salaries, wages and bonus	31,061 63	22.852.56
Contribution to provident and other funds (refer note 31)	2.059.54	1,528.58
Staff welfare and benefits	521.70	486.41
Share based payments to employees (refer note 35)	950.23	290 44
	34,593.10	25,157.99
28.2 Cost of professionals	7.974.18	5.563.68
	AS 567.98	30 791 67

Other expenses

		For the year ended
	March 31, 2022	March 31, 2021
	In ₹ Million	In ₹ Million
Travelling and conveyance	41204	173 62
Electricity expenses (net)	76.07	82.58
Internet link expenses	68.59	70.86
Communication expenses	87.05	102.18
Recruitment expenses	428.06	135.10
Training and seminars	119.58	57.36
Royalty expenses	92.54	94.83
Purchase of software licenses	1,606.97	1,855 62
Bad debts	65.27	90.30
(Reversal) / Allowance for expected credit loss (net)	(105.06)	31.32
Rent (refer note 36)	10188	140 89
Insurance	50.34	40.01
Rates and taxes	99.30	87.86
Legal and professional fees	828.48	525 40
Repairs and maintenance
- Plant and Machinery	141.71	113.88
- Buildings	20.46	21.63
- Others	26.96	18.69
Selling and marketing expenses	4.89	10.43
Advertisement, conference and sponsorship fees	85.67	140.01
Computer consumables	10.55	5.54
Auditors' remuneration (refer note 39)	11.39	11.14
Corporate social responsibility expenditure (refer note 43)	115.78	204 05
Books, memberships, subscriptions	32.90	20.66
Directors' sitting fees	7.43	4.84
Directors' commission	20.83	10.22
Impairment of loan		23.96
Loss / Impairment of non current investments	148.40	18.53
Miscellaneous expenses	400.39	235.55
	4,958.47	4,327.06

Earnings per share

		For the year ended
		March 31, 2022	March 31, 2021
Numerator for Basic and Diluted EPS Net Profit after tax (In ₹ Million)	(A)	6,903.86	4.506.77

Denominator for Basic EPS
Weighted average number of equity shares	(B)	76,425,000	76.425.000
Denominator for Diluted EPS
Number of equity shares	(C)	76,425,000	76,425,000

Basic Earnings per share of face value of ₹ 10 each (In ₹)	(A/B)	90.34	58.97
Diluted Earnings per share of face value of ₹10 each (In ₹)	(AVC)	90.34	58.97

		For the year ended
		March 31, 2022	March 31, 2021
Number of shares considered as basic weighted average shares outstanding		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

Notes forming part of consolidated financial statements

31. Defined benefits (Gratuity) :

Persistent Systems Limited and Persistent Systems Lanka (Private) Limited have defined benefit (gratuity) plans. Each Function of these companies is eligible for gratuity on completion of minimum five years of service at 15 days basic
salary (last drawn basic salary) for each completed year of service. The scheme is funded with an insuran

The following tables summarize the components of net benefit expense recognized in the statement of profit and loss
and the funded status and amounts recognized in the Balance Sheet for the respective plans.

In ₹ Million

Statement of profit and loss

Net employee benefit expense (recognized in statement of profit and loss)

		For the year ended
	March 31.	March 31.
	2022	2021
Current service cost	156.08	170.19
Interest cost on benefit obligation	63.81	58.49
Expected return on plan assets	(74.30)	(70.85)
Other		(29.52)
Net benefit expense	145 59	128.31
Net actuarial loss / (gain) recognized in the year	231.16	(17.68)

Due to Demographic assumptions	166.40	9.46
Due to Financial assumptions	(60.45)	13.85
Due to Experience assumptions	125.21	(40.99)
Net actuarial loss / (gain) recognized in the year	231.16	(17.68)

Balance sheet

Changes in the fair value of plan assets (recognized in the Balance Sheet) are as follows:

		In ₹ Million
	For the year ended
	March 31. 2022	March 31. 2021
Opening fair value of plan assets	1.050 79	985.61
Expected return	74.30	70.85
Adjustment to expected return	(14.29)	(10.85)
Contribution by employer	330 32	117.99
Benefits paid	(215.11)	(11281)
Closing fair value of plan assets	1,226.01	1,050.79

Changes in the present value of the defined benefit obligation (recognized in Balance Sheet) are as follows:

		In ₹ Million
		For the vear ended
	March 31.	March 31.
	2022	2021
Opening defined benefit obligation	975.49	877.48
I Interest cost	63.81	58.49
Current service cost	156.08	170.19
Benefits paid	(215.11)	(112.81)
Actuarial losses on obligation	231.16	(17.68)
IExchange difference	(17.65)	(0.18)
Closing defined benefit obligation	1.193.78	975.49

Benefit asset / (liability)

Dellett good!! (Hapity)
		In ₹ Million
		As at
	March 31,	March 31.
	2022	2021
Fair value of plan assets	1,226.01	1.050.79
Less: Defined benefit obligations	(1, 183.82)	(937.71)
Plan asset / (liability) for Persistent Systems Limited	42.19	113.08
Gratuity liability for Persistent Systems Lanka (Private) Limited	(9.96)	(37.78)

Notes forming part of consolidated financial statements The principal assumptions used in determining gratuity for the Group's plans are shown below:

		As at
	March 31.	March 31.
	2022	2021
Discount rate	7.07%	6.70%
Mortality	IALM (2012-14) Ult.	IALM (2012-14) UIt.
Attrition rate	IPS: 0 to 1 : 17%	IPS: 0 to 1 : 17%
	IPS: 1 to 3 : 15%	IPS: 1 to 3 : 14%
	IPS: 3 to 4 : 10%	IPS: 3 to 4 : 10%
	IPS: 4 to 5 : 5%	PS: 4 to 7 : 5%
	IPS: 5 to 7 : 6%	IPS: 7 to 10 : 3%
	IPS: 7 to 10 : 4%	PS:10 to 47:1%
	PS:10 to 50 : 2%
I Increment rate	6.00%	5.50%

The major categories of plan assets as a percentage of the fair value of total plan assets:

		As at
	March 31. 2022	March 31. 2021
Investments with insurer including accrued interest	100%	00%

Persistent Systems Lanka (Private) Limited
		As at
	March 31.	March 31.
	2022	2021
Discount rate	16 37%	8.55%
Increment rate	7.00%	6.00%

The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

The significant actuarial assumptions for the determination of the defined benefit obligations are discount rate and expected compensation increase. The sensitivity analysis below have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant

As at March 31, 2022, every percentage point increase / decrease in discount rate will change the defined benefit obligation (gratuity) obligation to approximately ₹ 1,089.07 million / ₹ 1,324.31 million (previous year: ₹ 822.41 million / ₹ 1,082 38 million) respectively

As at March 31, 2021, every percentage point increase / decrease in compensation levels will change the the defined benefit obligation (gratuity) obligation to approximately ₹ 1,255.79 million / ₹ 1,143.41 million (previous year: ₹ 998.72 million / ₹ 899.72

Amounts for the current and previous year are as follows:

.		In ₹ Million
		As at
	March 31. 2022	March 31. 2021
IPlan assets	1.226 01	1.050.79
Defined benefit obligation	(1, 183.82)	(937 71)
Plan asset for Persistent Systems Limited	42.19	113.08
Gratuity liability for Persistent Systems Lanka (Private) Limited	(9.96)	(37.78)

Maturity Profiles of defined benefit obligations are as follows:

			(In ₹ Million)
		As at
	March 31,		March 31,
	2022		2021
Within 1 year		7642	36.45
1 2 years		78.28	32.19
2-3 years		82.94	33.66
34 years		84.86	36.11
4-5 years		86.09	36 29
5-10 years		484 24	222.48

Superannuation Fund

The Group contributed ₹ 57.63 million and ₹ 43.55 million to superannuation fund during the years ended March 31, 2022 and March 31, 2021 respectively and the same is recognised in the Statement of profit and loss under the head employee benefit expenses.

Defined contribution plan - Provident Fund

The Parent Company has certain defined contribution plans. Contributions are made to provident fund for its employees @ 12% of Basic salary as per regulation. The contributions are made to registered provident fund administered by the Government of India. The obligation of the Parent Company is limited to the amount contributed and it has no further contractual nor any constructive obligation. The expense recognised during the period towards
defined contribution plan (provident fund) is ₹ 827.57 million (Previous year - ₹ 404.90 million).

Notes forming part of consolidated financial statements

32 (a) Financial assets and liabilities

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

							In ₹ Million
Financial assets/Financial liabilities		March 31, 2022			March 31, 2021		Fair value
	FVTPL	FVTOCI	Amortised Cost	FVTPL	FVTOCI	Amortised Cost	hierarchy*
Financial Assets:
Investments in equity instruments, preferred stock and convertible	162.01			183.48			Level 3
notes
Investments in bonds			2,87929			2,630 80
Investments in mutual funds	5,183.33			7,18194			eve
Loans			3,538 10			2179
Deposit with banks and financial institutions (net)			6,26742			7,412.46
Cash and cash equivalents (including unpaid dividend)			2,980.93			2,422 30
Trade receivables (net)			9,484.29			5,70897
Foreign exchange forward contracts		8459			294 46		evel ₂
Unbilled revenue			3,130.31			2,172.77
Other non current financial assets			23697			13476
Other current financial assets			ï			49.47
Total Financial Assets	5,345.34	84.59	28,517.31	7,365.42	294.46	20.553.32
Financial Liabilities:
Borrowings (including accrued interest)			4,32535			46.23
Trade payables			4,29871			2,733.44
Lease liabilities			1,45687			938.17
Other financial liabilities (excluding borrowings)			4,262.20			388.21
Total Financial Liabilities			14,343 13			4,106.05

'Fair value hierarchy:

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

Level 3 — Inputs are not based on observable market data (unobservable inputs). Fair values are determined in whole or in part using a valuation model based on assumptions that are neither
supported by prices from observab

Notes forming part of consolidated financial statements

32 (b) Financial risk management

Financial risk factors and risk management objectives

The Group's activities expose it to a variety of financial risks market risk, credit risk and Iquidity risk. The Group's focus is to foresse the unpredictability of financial markets and seek to minimize potential adverse exposures

Market risk

The Group operates globally with its operations spread across various geographies and consequently the Group is exposed to foreign exchange risk. Around 80% to 90% of the Group's
foreign currency exposure is in USD. The Gr

The following table analyses unhedged foreign currency risk from financial instruments as at March 31, 2022:

21965 35 93 1525 471 77 35 82 န္မ 119 37680 1783 ₽R 19.19 77927 32354 ຮີ Cash and cash equivalents and bank balances Trade and other pavables	P	b b			In ₹ Million
				ther currencies	otal
					847 49 413 12

				10.47	56.10

The following table analyses unhedged foreign currency risk from financial instruments as at March 31, 2021:

					In ₹ Million
	ຮິ	€ ⊟	န္မ	ther c	Total
3es rade	18763	12175	29184	13042
Cash and cash equivalents and bank balances	33971	2810	1305		731 64 396 18 13 61
Other financial assets	0.29	0.26	758	$1532$ 548
Trade and other payables	13506	466	3574	1.50	18696

Notes forming part of consolidated financial statements

Foreign currency sensitivity analysis

For the year ended March 31, 2022 and March 31, 2021, every percentage point depreciation in the exchange rate between the Indian rupee and foreign currencies, would
affect the Group's profit before tax margin (PBT) by app

Derivative financial instruments

The Group holds derivative foreign currency forward contracts to mitigate the risk of changes in exchange rates on foreign currency exposures. These derivative financial instruments are
valued based on quoted prices for si

The following table gives details in respect of outstanding foreign currency forward contracts:

		As at March 31, 2022			As at March 31. 2021
	. oreign currency	Average rate	$\bar{\epsilon}$ (million)	Foreign currency Average ₹ (million)
	mullion			million	rate
Derivatives designated as cash flow hedges
Forward contracts
OSD	17500	1774	13,605.02	13500		77 11 10,410 34

The foreign exchange forward contracts mature within a maximum period of twelve months. The table below analyses the derivative financial instruments into relevant maturity groupings
based on the remaining period as of the

		As at March 31, 2022			As at March 31, 2021
	Foreign currency	Average rate	$\overline{\epsilon}$ (million)	Foreign currency Average ₹ (million)
	(million)			million)	rate
INot later than 3 months	41.00	77.00	3,15691	31.00	7848	2,432.98
ater than 3 months and not later than 6 months	45.00	717	3,47271	3450	7708	2,659.11
ater than 6 months and not later than 9 months	4500	7823	3,520.48	3450	76.63	2,643.64
ater than 9 months and not later than 12 months	44.00	852	3,454 92	3500	76.42	2,674.61
Total	75.00		3,605 02	135.00		10,41034

Notes forming part of consolidated financial statements

Credit risk

Credit risk refers to the risk of default on its obligation by the counter party resulting in a financial loss. The maximum exposure to the readit risk at the reporting date is primarly from trade
receivedes amounting to 9

business

On account of adoption of Ind AS 109, the Group uses expected credit loss model to assess the impairment loss. The Group uses a provisioning policy approved by the Board of Directors to
compute the expected credit loss all customers. Credit risk is perceived mainly in case of receivables overdue for more than 90 days. The following table gives details of risk concentration in respect of percentage of receivables overdue for
more than 90 days:

In₹ Million

		As at
		March 31, 2022 March 31, 2021
Receivables overdue for more than 90 days (₹	42700	966.82
Total receivables (gross) (₹ million) $m = 100$ and $m = 10$	9.650 07	5,980.61
Overdue for more than 90 days as a % of total	44%	162%
receivables

* Out of this amount, ₹ 271 64 million (March 31, 2021: ₹ 271 64 million) have been provided for

In ₹ Million

Ae at

Ageing of trade receivables

		i
	March 31, 2022	March 31, 2021
Within the credit period	731644	3815.33
1 to 30 days past due	149972	89730
31 to 60 days past due	19435	21123
61 to 90 days past due	21256	89.93
91 to 120 days past due	68.03	1724
121 and above past due	35897	949.58
ess: Expected credit loss	16578	(27164)
Net trade receivables	9.484.29	5,70897

Movement in expected credit loss allowance

In ₹ Million

		i
	March 31, 2022	March 31, 2021
Opening balance	27164	242 13
Movement in expected credit loss allowance	105.06	3132
Translation differences	(080)	(181)
Closing balance	16578	271.64

Credit risk on cash and cash equivalents is limited as the Group generally invests in deposits with banks and financial institutions with high credit ratings. Investments primarily include
investment in debts mutual funds,

Liquidity risk

The Groups principal sources of liquidity are cash and cash equivalents and the cash flow that is generated from operations. The investment of surplus funds is governed by the Group's
Aveostment, no licy of the Board of Di

The table below provides details regarding the contractual maturities of significant financial liabilities:

				In ₹ Million
			As at
		March 31, 2022	March 31, 2021
		ess than 1 year More than 1 year Less than 1 year More than 1 year
Borrowings (including accrued interest)	52456	2,80079	196	44.27
Trade payables and deferred payment liabilities	1,298.71		2,733.44
Lease Liabilities	34258	11429	222.00	16.17
Other financial liabilities (excluding borrowings)	64904	2,08860	8821

32 (c) Derivative instruments and un-hedged foreign currency exposures

(i) Forward contracts outstanding at the end of the year:

The community contracts of the community at the change of the year.
		(In ₹ Million)
	As at	As at
	March 31, 2022	March 31, 2021
Forward contracts to sell USD: Hedging of expected receivables of USD	13.605.02	10.410.34
175 Million (Previous vear USD 135 Million)

(ii) Details of un-hedged foreign currency exposures at the end of the year:

		March 31, 2022			March 31, 2021
	In $\bar{\tau}$ million	Foreign currency (In million)	Conversion rate (₹)	In ₹ million	Foreign currency (In million)	Conversion rate (3)
Bank balances	1.64	JPY 263	0.62	1 3 3	JPY 2.02	0.66
	323.54	USD 4.27	75.77	339 71	USD 4.65	73 11
	35.82	GBP 0.36	99.50	13.05	GBP 0.13	100.69
	1.04	CAD 0.02	52.00	8.81	CAD 0.15	58.02
	1783	EUR 0.21	84 90	28.10	EUR 0.33	85 78
	20.89	AUD 0.37	56.46	2.41	AUD 0.04	55.67
	12.36	ZAR 2.37	5.22	2.77	ZAR 0.56	4 9 4

Trade and other payables	19.19	USD 0.25	75.79	135.06	USD 1.85	73.11
	15.25	GBP 0.15	99.43	35.74	GBP 0.35	100.69
	11.19	EUR 0.13	84.13	14 66	EUR 0.17	85 78
	0.31	SGD 0.01	55.98	0.08	SGD 0.002	54.40
	0.29	ZAR 0.06	5 2 2	0 15	ZAR 0.03	4 9 4
	6.82	CAD 0.11	60.52	081	CAD 0.01	58.02
	1.23	AUD 0.02	56 72	0.03	AUD 0.001	55.67
	182	JPY 2.92	0.62	043	JPY 0.65	0.66
Trade receivables	376.80	EUR 4.48	84 13	121 75	EUR 1.42	85.78
	779.27	USD 10.28	75.79	187.63	USD 2.56	73.11
	471 77	GBP 4.74	99.43	291.84	GBP 2.90	100.69
	23.73	CAD 0.39	60.52	40 66	CAD 0.70	58.02
	110 41	AUD 1.95	56 72	52 27	AUD 0.94	55.67
	45.72	CHF 0.56	81.93	5.04	CHF 0.06	77.46
	26.88	ZAR 5.15	5.22	29.74	ZAR 6.02	4 9 4
	5.95	SGD 0.11	55.98	2.71	SGD 0.05	54.40
	1.08	BRL 0.07	15.89
	5.88	MYR 0.33	18.03

33. Income taxes

The reconciliation of estimated income tax expense at Indian statutory income tax
rate to income tax expense reported in statement of profit and loss is as follows:

		For the year ended
	March 31, 2022	March 31, 2021
	In ₹ Million	In ₹ Million
Profit before tax	9.242.79	6.094.43
Enacted tax rate in India	25.17%	25.17%
Computed tax expense at enacted tax rate	2,326.23	1.533.85
Effect of exempt income	(123.07)	(90.04)
Effect of non-deductible expenses	37.27	40 25
Effect of concessions (R&D allowance)	5.76	(144.67)
Effect of concessions (Tax holidays)	(17.80)	(9.69)
Effect of unused tax losses not recognised as deferred tax assets	2.46	1.70
Effect of previously unrecognised deferred tax assets now recognised		(8.54)
Effect of different tax rates of subsidiaries operating in other jurisdictions	51.36	7.65
Effect of different tax rates for different heads of income	(5.69)	(2.06)
Short Tax Provision of earlier years (net)	42.58	11.28
Reversal of Deferred tax asset created in earlier years	1593	73 38
Others	3.90	174 55
Income tax expense	2,338.93	1,587.66

34 Seament information

Operating segments are components of an enterprise for which discrete financial information is avalable that is evaluated regularly by the chief operating decision makers, in deciding how to
allocate resources and assessin

The operating segments of the Group are:

a. Banking, Financial Services and Insurance (BFSI)

b. Healthcare & Life Sciences
c. Technology Companies and Emerging Verticals

Particulars			BFS	Healthcare & Life Sciences	Technology Companies and Emerging Verticals	Total

Revenue
	Year ended Year ended	March 31, 2022 March 31, 2021	18,063.65 12,857.05	11,842.75 8,104.24	27,201.06 20.917.59	57,107.46 41.878.88

Identifiable expense
	Year ended	March 31, 2022	11.879.32	5.779.01	17,931.96	35,590.29
	Year ended	March 31, 2021	8,038.67	4,121.77	14,468.19	26,628.63
Segmental result
	Year ended	March 31, 2022	6,184.33	6.063.74	9.269.10	21.517.17
	Year ended	March 31, 2021	4,818.38	3,982.47	6,449.40	15,250.25
Unallocable expenses
	Year ended	March 31, 2022				13,713.93
	Year ended	March 31, 2021				10,233.54

Operating income
	Year ended	March 31, 2022				7.803.24
	Year ended	March 31, 2021				5.016.71
Other income (net of expenses)
	Year ended	March 31, 2022				1.439.55
	Year ended	March 31, 2021				1.077.72
Profit before taxes
	Year ended	March 31, 2022				9.24279
	Year ended	March 31, 2021				6.094 43
Tax expense
	Year ended	March 31, 2022				2.338.93
	Year ended	March 31, 2021				1,587.66
Profit after tax
	Year ended	March 31, 2022				6,903.86
	Year ended	March 31, 2021				4,506.77

						(In ₹ Million)
Particulars			BFS	Healthcare & Life Sciences	Technology Companies and	Total
					Emerging Verticals
Segmental trade receivables (net)
	As at	March 31, 2022	1,816.26	1.949.27	5,718.76	9,484.29
	As at	March 31, 2021	1,355.88	1.363.40	2.989.69	5.708.97

Segmental Unbilled revenue
	As at	March 31, 2022	754.63	325.30	2,050.38	3,130.31
	As at	March 31, 2021	594.57	162.29	1,415.91	2.172.77

Unallocated assets
	As at	March 31, 2022	۰.	۰	٠	41,526.37
	As at	March 31, 2021	۰	۰	$\overline{\phantom{a}}$	28,773.50

Unallocated liabilities
	As at	March 31, 2022			$\overline{\phantom{a}}$	54,140 97
	As at	March 31, 2021				36,655.24

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

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.

						$ln ₹$ Million)
Particulars			India	North America	Rest of the World	Total
Revenue
	IYear ended	March 31, 2022	6.028.37	44.812.10	6.266.99	57.107.46
	Year ended	March 31, 2021	3.512.59	33.861.61	4.504.68	41.878.88

The revenue from individual customers in excess of ten percent of total revenue of the Group is ₹ 9,271.13 Million for the year ended March 31, 2022 (Previous year : ₹ 12,146.55 Million).

35 Employees stock option plans (ESOP)

Certain information in this note relating to number of shares, options and per share/option price has been disclosed in full and is not rounded off.

a) Details of Employee stock option plans

The Group has framed various share-based payment schemes for its employees. The details of various equity-settled employee stock option plan
('ESOP') schemes adopted by the Board of Directors are as follows:

ESOP scheme	No. of options granted #	Date of adoption	Initial	Exercise period
		by the Board/Members	Grant date
Scheme I	4.560.500	11 Dec 99	11 Dec 99
Scheme II	753,200	23 Apr 04	23 Apr 04	10 Years
Scheme III	2.533.300	23 Apr 04	23 Apr 04
Scheme ^IV	6.958.250	23 Apr 06	23 Apr 06	10 Years
Scheme V	1.890.525	23 Apr 06	23 Apr 06
Scheme VI	1.216.250	31 Oct 06	31-Oct-06	10 Years
Scheme VII	1.784,975	30 Apr 07	30 Apr 07	10 Years
Scheme VIII	42,000	24-Jul-07	24-Jul-07	3 Years
Scheme IX	1.374.462	29 Jun 09	29 Jun-09	10 Years
Scheme X	3.062.272	10 Jun 10	29 Oct 10	2 3 Years
Scheme XI ^**	1.614.200	26 Jul-14	3 Nov 14	4 5 Years
Scheme XII ***	67,300	4-Feb-16	8 Apr 16	2.5 Months
Scheme XIII	4.913,338	27 Jul-17	1 Aug 19	4-5 Years
Scheme XIV	80,000	27 Jul-17	1 May 19	5 Years

Adjusted for bonus issue of shares.
*No contractual life is defined in the scheme.

**The options under Scheme XI, which is a performance based ESOP scheme will vest after 2-3 years in proportion of credit points earned by the employees every quarter based on performance. The maximum options which can be granted under this scheme are 2,000,000.

***The options under Scheme XII, ESOP scheme would vest after 1 year. The maximum options which are granted under this scheme are 50 per
employee.

The vesting period and conditions of the above ESOP schemes is as follows:

All the above ESOP schemes have service condition (other than Grant 1 of scheme XI which Is based on performance criteria), which require the
employee to complete a specified period of service, as a vesting condition. The

(i) Scheme I to V, VII, VIII, X and XIV

Service period from the		% of Options vesting
date of grant	Scheme I to V & X	Scheme VII	Scheme VIII	Scheme XIV
12 Months	10%	20%	25%	0.00%
24 Months	30%	40%	50%	33.33%
36 Months	60%	60%	75%	66.66%
48 Months	100%	80%	100%	100%
60 Months	NA	100%	NA	NA
(ii) Scheme VI
Service period from the date of grant		% of Options vesting
18 Months		30%
Every quarter thereafter		5%

(iii) Scheme IX
Service period from the date of grant		% of Options vesting
	30-60 Months varying from employee to employee	100%
(iv) Scheme XI
Service period from the		% of Options vesting
date of grant	Grant 1	Grant 2	Grant 3
12 Months	Based on credit points earned	25%	40%
24 Months	which varies from employee to	50%	30%
36 Months	employee	75%	30%
48 Months	NA	100%	NA
60 Months	NA	NA	NA.
(v) Scheme XII:
Service period from the date of grant		% of Options vesting
1 year		100%
(vi) Scheme XIII:
Service period from the		% of Options vesting
date of grant	Grant 1	Grant 2	Grant 3
12 Months	25%	40%	33%
24 Months	50%	30%	67%
36 Months	75%	30%	100%
48 Months	100%	NA	NA
60 Months	NA	NA	NA

b) Details of activity of the ESOP schemes

Movement for the year ended March 31, 2021 and March 31, 2022:

ESOP Scheme	Particulars	Year Ended	Outstanding at the beginning of the Year	Granted during the Year	Forfeited during the Year	Exercised during the Year	Outstanding at the end of the Year	Exercisable at the end of the Year
Scheme I	Number of Options	31-Mar 21	17	$\blacksquare$	$\overline{4}$		13	13
	Weighted Average Price	31 Mar 21	4.42		4.58		4 37	4.37
	Number of Options	31 Mar 22	13		13
	Weighted Average Price	31 Mar 22	4.37		4.37
Scheme II	Number of Options	31 Mar 21	$\overline{a}$	ä,
	Weighted Average Price	31 Mar 21
	Number of Options	31 Mar 22
Scheme III	Weighted Average Price Number of Options	31-Mar 22 31 Mar 21	147,835	٠		20,473	127,362	127,362
	Weighted Average Price	31 Mar 21	31.94			30.22	32.07	32.07
	Number of Options	31 Mar 22	127,362			19,103	108,259	108,259
	Weighted Average Price	31 Mar 22	32.07			33.69	3178	31.78
Scheme IV	Number of Options	31-Mar 21	406,348			80,050	326,298	326,298
	Weighted Average Price	31 Mar 21	53.07			46.70	54.83	54.83
	Number of Options	31 Mar 22	326,298			80,000	246,298	246,298
	Weighted Average Price	31-Mar-22	54 83			55.16	54.72	54.72
Scheme V	Number of Options	31 Mar 21	60,332			8,641	51,691	51,691
	Weighted Average Price	31 Mar 21	27 58			28.99	27.22	27 22
	Number of Options	31 Mar 22	51,691			1,810	49,881	49,881
	Weighted Average Price	31 Mar 22	27 22	$\blacksquare$	$\blacksquare$	44 14	26.61	26.61
Scheme VI	Number of Options	31-Mar-21		$\overline{a}$
	Weighted Average Price Number of Options	31 Mar 21 31 Mar 22
	Weighted Average Price	31 Mar 22
Scheme VII	Number of Options	31 Mar 21	6,961			3,620	3,341	3,201
	Weighted Average Price	31 Mar 21	58.18			56.83	59.65	61.12
	Number of Options	31 Mar 22	3,341			3,200	141	141
	Weighted Average Price	31-Mar-22	59.65			61.12	26.29	26.29
Scheme VIII	Number of Options	31 Mar 21
	Weighted Average Price	31 Mar 21
	Number of Options	31 Mar 22
	Weighted Average Price	31 Mar 22
Scheme IX	Number of Options	31-Mar 21	135,920	$\blacksquare$		6,216	129,704	129,704
	Weighted Average Price Number of Options	31 Mar 21 31 Mar 22	54.74 129,704			54.74 13,993	54 74 115,711	54.74 115,711
	Weighted Average Price	31 Mar 22	54 74			54 74	54 74	54.74
Scheme X	Number of Options	31 Mar 21	125,062		92,955	32,107
	Weighted Average Price	31 Mar 21	188.75		183 38	204 30
	Number of Options	31-Mar-22
	Weighted Average Price	31 Mar 22
Scheme XI	Number of Options	31-Mar 21	570,000	295,000	300,000	119,000	446,000	6,000
	Weighted Average Price	31 Mar 21	10.00	10.00	10.00	10.00	10.00	10.00
	Number of Options	31-Mar 22	446,000	257,200	23,700	167,750	511,750	28,725
	Weighted Average Price	31 Mar 22	10.00 $\blacksquare$	10.00 $\blacksquare$	10.00 ä,	10.00	10.00	10.00
Scheme XII	Number of Options Weighted Average Price	31 Mar 21 31 Mar 21
	Number of Options	31 Mar 22
	Weighted Average Price	31 Mar 22			$\overline{\phantom{a}}$
Scheme XIII	Number of Options	31 Mar 21	920,000	1,947,500	$\blacksquare$	121,275	2,746,225	98,850
	Weighted Average Price	31 Mar 21	451.65	1,008.29		442 47	846.80	442.47
	Number of Options	31-Mar 22	2,746,225	1,990,838	923,803	433,136	3,380,124	226,045
	Weighted Average Price	31 Mar 22	846 80	3,116.67	1,679.25	727.30	1,971.52	892.30
Scheme XIV	Number of Options	31 Mar 21	80,000		40,000		40,000	10,000
	Weighted Average Price	31 Mar 21	540 82		540 82		540 82	540.82
	Number of Options Weighted Average Price	31-Mar-22	40,000 540.82		40,000 540 82
Total	Number of Options	31 Mar 22 31-Mar-21	2,452,475	2,242,500	432,959	391,382	3,870,634	753,119
	Number of Options	31 Mar 22	3,870,634	2,248,038	987,516	718,992	4,412,164	775,060

The weighted average share price for the period over which stock options were exercised was ₹ 3,682.54 (previous year ₹ 1,131.43).

Notes forming part of consolidated financial statements

c) Details of exercise price for stock options outstanding at the end of the year

	Range of exercise		As at March 31, 2022	As at March 31, 2021
Scheme	price	No. of Options outstanding*	Weighted average remaining	No. of Options outstanding	Weighted average remaining
Scheme I	$2.04 - 9.57$		Note (i)	13	Note (i)
Scheme II	12.96 - 48.21
Scheme III	12 96 - 48 21	108,259	Note (i)	127,362	Note (i)
Scheme IV	$22.23 - 61.12$	246,298	1.73	326,298	2.39
Scheme V	22 23 - 44 14	49,881	Note (i)	51,691	Note (i)
Scheme VI	22 23 - 30 67
Scheme VII	$24.17 - 61.12$	141	0.52	3.341	2.73
Scheme VIII	48 21 - 48 21
Scheme IX	54.74 - 54.74	115.711	1.24	129.704	2 2 4
Scheme X	157 58 - 279 70
Scheme XI	10	511.750	4.58	446,000	2 2 5
Scheme XII	10
Scheme XIII	442 47 - 3801 78	3,380,124	3.86	2,746,225	5.59
Scheme XIV	540 82 - 540 82			40.000	3.08

Note (i) No contractual life is defined in the scheme.

d) Effect of the employee share-based payment plans on the statement of profit and loss and on its financial position

Compensation expense arising from equity-settled employee share-based payment plans for the year ended March 31, 2022 amounted to ₹ 950.23 million (Previous year ₹
290.44 million). The liability for employee stock options

e) Weighted average exercise prices and weighted average fair values of options

The Binomial tree and Black-Scholes valuation models have been used for computing the weighted average fair value of the stock options granted during the financial year 2021- $22:$

		March 31, 2022	March 31, 2021
Particulars	RSU	ESOP	RSU	ESOP
	Scheme XI	Scheme XIII	Scheme XI	Scheme XIII
Weighted average share price ₹	3819.71	3670.90	948.4	118297
Weighted Exercise Price ₹	10	310782	10	1008
Weighted Average Fair Value ₹	3615.75	938.25	838.75	424.39
Expected Volatility	24 42	24.5	317	29.09
Life of the options granted ** (Vesting and exercise period)	$3 - 4$ vrs	$3 - 4$ yrs	4 yrs	4 yrs
Dividend Yield	200.00%	200.00%	2.00%	2.00%
Average risk free interest rate	4.98%	4.48%	5.56%	5.49%

** Life of option varies as per graded vesting period for different class of options granted.

The inputs to the model include the share price at date of grant, exercise price, expected dolatility, expected dividends, expected term and the risk-free rate of interest. Expected
volatility during the expected term of t modelled based on historical movements in the market prices of the publicly traded equity shares during a larger period to smoothen the fluctuations

Notes forming part of consolidated financial statements

36 Leases

The table below provides details regarding the contractual maturities of lease liabilities on an undiscounted basis:

	As at	As at
		March 31, 2022 March 31, 2021
	In $\bar{\tau}$ Million	n ₹ Million
- Less than one year	394.01	222.00
- One to five years	1.142.15	623.21
- More than five years	89.10	164.13

The Group does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet the obligations related to lease liabilities as and when they fall due.

Rental expense recorded for short-term leases was ₹ 101.88 million for the year ended March 31, 2022 (Previous year ₹140.89 million).

The Group has has recognized interest on lease liabilities of ₹84.06 million under finance costs (Previous year ₹57.53 million).

The aggregate depreciation on ROU assets has been included under depreciation and amortisation expense in the Statement of Profit and Loss.

Related Party Disclosures $37$

Names of related parties and related party relationship $(i)$

Associate	Klisma e-Services Private Limited

Key management personnel	Dr. Anand Deshpande, Chairman and Managing Director
	Mr. Christopher O'Connor, Chief Executive Officer and Director (resigned wef August 9, 2020)

	Mr Sandeep Kalra, Executive Director and Chief Executive Officer (Executive Director and President was appointed as the Chief Executive Officer
	('CEO') of the Company with effect from October 23, 2020)
	Mr. Sunil Sapre, Executive Director and Chief Financial Officer
	Mr Amit Atre, Company Secretary
	Mr. Sudhir Kulkarni, Director, Persistent Systems, Inc., USA
	(resigned as Director of Persistent Systems, Inc (wholly owned subsidiary) w.e.f. April 19, 2019)
	Mr. Azlin Ghazali, Director, Persistent Systems Malaysia Sdn. Bhd.
	Mr. John Ryan, Director, Persistent Systems Malaysia Sdn. Bhd.
	Ms. Audrey Reutens, Director, Persistent Systems Malaysia Sdn. Bhd.
	Mr. Arnaud Pierrel, Director General, Persistent Systems France SAS
	Mr. Steven Ward, Director, Youperience Limited, United Kingdom
	Mr. Bruno Orsier, Director, Persistent Systems France SAS
	Mr. Thomas Klein, Director, Persistent Systems, Inc., USA
	Ms. Roshini Bakshi, Independent Director
	Mr. Pradeep Bhargava, Independent Director
	Mr. Sanjay Bhattacharya, Independent Director
	(resigned as an Independent Director of the Company w.e.f. July 1, 2019) Dr. Anant Jhingran, Director, Persistent Systems, Inc., USA
	Mr. Thomas Kendra, Independent Director
	Mr. Prakash Telang, Independent Director
	(Retired wef July 24, 2020)
	Mr. Kiran Umrootkar, Independent Director
	(Retired wef July 24, 2020)
	Mr. Deepak Phatak, Independent Director
	Ms. Avani Davda (Appointed wef December 21, 2021) Mr. Guy Eiferman, Independent Director
	Mr. Silvio Galfetti, Director, Parx Werk AG, Switzerland
	Mr. Steffen Drilich, Director, Youperience GmbH, Germany
	Mr. Daniel Seiler, Director, PARX Werk AG
	Mr. Beat Kach, Director, PARX Werk AG
	Mr. Simon Nicholas Liyod Jenkins, Director, Youperience Limited
	Mr. Brijesh Chandel, Director, Youperience Limited
	Dr. R Venkateswaran, Director, Persistent Systems (Lanka) Private Limited
	Mr. Kolitha Ratwatte, Director, Persistent Systems (Lanka) Private Limited
	Mr. Narasinha (Avadhoot) Upadhye, Director, Aepona Group Limited
	Mr. Guadalupe Torres, Director, Persistent Systems Mexico, S.A. de C.V.
	Mr. Hitesh Salla, Director, Capiot Software Private Limited Mr. Ashish Kapoor, Director, Capiot Software Private Limited
	Mr. Sameer Bendre, Director, Capiot Software Private Limited
	Mr. Sameer Dixit, Director, Capiot Software Private Limited
	Mr. Sachin Dewasthalee, Director, Capiot Software Pty Ltd, Australia
	Mr. Vaudeva Anumukonda, Director, Capiot Software Inc
	Mr. Ashish Kapoor, Director, Capiot Software PTE Ltd
	Mr. Abhilash Mohan, Director, Capiot Software Pty Ltd, Australia
	Mr. D. Keith Sides Manager, Software Corporation International LLC, USA
	Mr. Eric Massenburg, Manager, Fusion360 LLC, USA
Relatives of Key management personnel	Mr. Suresh Deshpande
	(Father of the Chairman and Managing Director)
	Mrs. Sulabha Deshpande
	(Mother of the Chairman and Managing Director)
	Mrs. Sonali Anand Deshpande
	(Wife of the Chairman and Managing Director)
	Dr. Mukund Deshpande \$
	(Brother of the Chairman and Managing Director)
	Mrs. Chitra Buzruk \$
	(Sister of the Chairman and Managing Director)
	Mr. Aru Deshpande ** (Son of the Chairman and Managing Director)

37 (ii) Related party transactions

			(In ₹ Million)
	Name of the related party and nature of relationship	For the year ended
		March 31, 2022	March 31, 2021
Donation given	Entity over which a key management personnel has significant influence Persistent Foundation	115.36	140.00
		115 36	140.00
Remuneration #	Key Management Personne
(Salaries, bonus and contribution	Dr. Anand Deshpande	31.94	26.26
to other funds)	Mr. Christopher O'Connor		158.50
	Mr. Sunil Sapre (including value of perquisites for stock options exercised ₹	90.21	46.42
	73.25 million during the year (Previous year: ₹ 31.72 million)
	Mr. Amit Atre (including value of perquisites for stock options exercised ₹ 3.19 million during the year (Previous year: Nil)	7.17	3.40
	Sudhir Kulkarni
	Mr. Sandeep Kalra (including value of perquisites for stock options exercised	468.68	110.53
	₹ 361.06 million during the year (Previous year: ₹ 45.84 million)
	Mr. Azin Ghazai	11.87	10.33
	Ms Audrey Reutens	6.45	5.38
	Mr. Arnaud Pierrel	15.50	14.66
	Mr. Bruno Orsier	11.94	11.36
	Mr. Thomas Klein (including value of perquisites for stock options exercised ₹ 31 99 million during the year (Previous year: Nil)	79.40	44.87
	Mr. Steffen Drilich Mr. Steven Ward	16.35 19.66	17.89 22.94

	Mr. Simon Nicholas Lloyd Jenkins	18.51	22.57
	Mr Narasinha (Avadhoot) Upadhye (including value of perquisites for stock options exercised ₹ 8.17 million during the year (Previous year: ₹ 0.33 million)	12.36	3.70
	Mr. Silvio Galfetti	11.17	3.09
	Mr. Daniel Seiler	20.76	29.33
	Mr. Kolitha Ratwatte (Resigned with effect from Sep 30, 2021)	3.42	6.88
	Mr. Hitesh Salla, Director	20 17	2.46
	Mr Ashish Kapoor	16.08	2.46
	Mr. Vasudeva Anumukonda (joined with effect from November 7, 2020)	34.83	6.37
	Mr. Abhilash Mohan (joined with effect from November 7, 2020)	13.33	3.09
	Mr. Sameer Bendre (including value of perquisites for stock options exercised ₹ 36.23 million (Previous year: ₹ 0.19 million)	46.89	11.07
	Mr. D. Keith Sides	4.58
	Mr. Eric Massenburg, Manager	6.31
	Mr. Brijesh Chandel (appointed in FY 21-22)	23.17
	Mr. Beat Kaech (appointed in FY 21-22)	17.95
	Mr. Guadalupe Torres	13.00	10.62
	Mr. Sachin Dewasthalee (Joined with effect from May 2020) (including value of perquisites for stock options exercised ₹ 17.24 million during the year (Previous year: Nil)	26.56	8.03
	Dr. R Venkateswaran (including value of perquisites for stock options exercised ₹ 34.86 million during the year (Previous year: ₹ 5.68 million)	43.26	12.70
	Mr. Sameer Dixit (including value of perquisites for stock options exercised ₹ 17.19 million during the year (Previous year: ₹ 0.81 million)	25.49	8.12
	Independent directors:
	Ms. Roshini Bakshi	4.08	2.09
	Mr. Pradeep Bhargava	4.33	2.26
	Dr. Anant Jhingran	3.53	1.83
	Mr. Thomas Kendra	3.63	1.69
	Mr. Prakash Telang	$\blacksquare$	0.74
	Mr. Kiran Umrootkar		0.74
	Mr. Praveen Kadle	4.19
	Mr. Guy Eiferman	381	2.08
	Dr. Deepak Phatak	3.88	1.81
	Ms. Avani Davda Relatives of Key Management Personnel	0.79
	Dr. Mukund Deshpande (including value of perquisites for stock options exercised ₹ 2.87 million during the year 2020-21) \$		2.87
	Mr Arul Deshpande ** Total	3.88 1,149.13	0.03
	Key Management Personne		619.17
Dividend paid	Dr. Anand Deshpande	457.22	319.90
			0.06
	Mr. Sunil Sapre	1.04
	Mr Sandeep Kalra	1.77	0.56
	Mr. Amit Atre	0.03
	Independent directors:
	Pradeep Bhargava	0.24	0.18
	Roshini Bakshi		0.07
	Relatives of Key Management Personne
	Mr. Suresh Deshpande	0.10	0.07
	Mrs. Chitra Buzruk	9.39	6.57
	Dr. Mukund Deshpande	8.00	5.60
	Mrs. Sonali Anand Deshpande	2.24	1.57
	Mrs. Sulabha Suresh Deshpande	0.12	0.64
	Mr. Arul Deshpande	0.20	0.14
	Total	480.35	335.36

Notes forming part of consolidated financial statements

(iii) Outstanding balances

	Name of the related party and nature of relationship		As at
		March 31. 2022	March 31. 2021
Advances given	Associate
	Klisma e-Services Private Limited @		0.81
	Total		0.81
Investments	lAssociate
	Klisma e-Services Private Limited @		0.05
	Total		0.05
Loans given	Associate
	Klisma e Services Private Limited @	۰	27 43
	Total		27.43

Guarantees and letters of comfort
i. Guarantees outstanding as at March 31,2022: Rs. 3,522.19 Million (March 31, 2021: Rs. 3,901.81 Million).
ii. Letters of letters of comfort of USD 60 Million: Rs. 4,547.40 Million (Mar

Notes:

......
\$ Dr. Mukund Deshpande and Mrs. Chitra Buzruk and have resigned w.e.f. Apr 28, 2020 and May 29, 2020 respectively
# The remuneration to the key managerial personnel does not include the provisions made for gratuity, determined on an actuarial basis for the Company/Group as a whole

** Mr. Arul Deshpande has joined with effect from March 8, 2021

The key managerial personnel though appointed during the year, their remuneration for the financials year ended March 31, 2022 and March 31, 2021 has
been disclosed for the entire financial year.

@ 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. These balances

Notes forming part of consolidated financial statements

38 Capital and other commitments

	As at
	March 31, 2022	March 31, 2021
	In ₹ Million	In $\bar{\tau}$ Million
Capital commitments
Estimated amount of contracts remaining to be executed on capital account and not provided for	158.66	223.81
Other commitments
Forward contracts	13.605.02	10.410.34

For commitments relating to lease agreements, please refer note 36.

39 Auditors' remuneration

		For the year ended
	March 31, 2022 March 31, 2021
	In $\bar{\tau}$ Million	In $\bar{\tau}$ Million
As auditor:
- Audit fee	10.35	9.73
In other capacity:
- Other services	0.84	1.21
Reimbursement of expenses	0.20	0.20
	11.39	11.14

40

Research and development expenditure
The particulars of expenditure incurred on in-house research and development are as follows:

					For the year ended
				March 31, 2022	March 31, 2021
				In ₹ Million	In $\bar{\tau}$ Million
Capital
Revenue				230.51	641 42
				230.51	641.42
Net dividend remitted in foreign exchange					In ₹ Million
Particulars	Period to which dividend	No. of non- resident	No. of equity shares held on which dividend was due	For the year ended
	relates	shareholders	(in million)	March 31, 2022	March 31, 2021
Interim dividend	2021-22	5	0.37	5.95	4.11
Final dividend	2020-21	3	0.37	176

	Notes forming part of consolidated financial statements Persistent Systems Limited
	42 Contingent liabilities		$(ln \bar{z}$ Million)
Sr No		As at March 31, 2022	March 31, 2021
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 services on reverse charge basis for the Financial Year 2014-15, the Parent 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	17378	17378
	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 The Parent Company has paid ₹ 165.58 million under protest towards the demand and the same forms part of the GST receivable eligible to claim credit/refund for the amount paid balance.
	and based on the consultations with subject matter specialists, the Parent is periods amounting to ₹ 255.52 million, which have been refunded under protest with interest of ₹ 41.03 million, the Parent Company has filed an application with Directorate General of Foreign Trade Id on ultimate resolution (ii) In respect of export incentives pertaining to previou Based on the documents filed with relevant authorities Company believes that its position is most likely be uphe (DGFT)	29655	29655
	(iii) Other Pending litigations in respect of Indirect taxes.	13.53	2733
$\mathbf{\tilde{c}}$	ច្ឆ Income tax demands disputed in appellate proceedir	85502	47870
$\mathbf{\Omega}$ ଢ	Letters of comfort on behalf of subsidiary (USD 60 Million (Previous year: Nil)) Guarantees and Letter of Comfort on behalf of Subsidiaries Guarantees given on behalf of subsidiaries	77078 4,547 40	1,109.08
	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 therefore, no provision is considered necessary in the financial statements. *The Parent Company, based on independent legal opinions and

Notes forming part of consolidated financial statements

43 Details of Corporate Social Responsibility expenditure

			(In ₹ Million)
		March 31, 2022	March 31, 2021
	a) Gross amount required to be spent by the Company during the year b) Amount of Expenditure incurred	110.24	94.49
	(i) Construction/acquisition of any asset
	(ii) On purposes other than (i) above	115 53	150.00
d)	c) Shortfall at the end of year Total of previous year shortfall e) Reason for shortfall
	Nature of CSR Activity	Donation given to the following entities: a Persistent Foundation b. Help Age India c. Wildlife Research and Conservation Society	Donation given to Persistent foundation and PM Care fund
	g) Details of related party transactions Donation given to Persistent Foundation h) Deails of provision made for liability incurred by entering into a contractual obligation	115 36	140.00

Notes forming part of consolidated financial statements

44 Business Combinations

The acquisition of the following 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.

Update on Purchase price allocation of acquisiton of CAPIOT Group $a)$

$(ln \n{F}$ Million)

The acquisition of the said business was accounted for using the acquisition method of accounting on provisional basis availing the exemption under Ind AS 103.

Following are the results after conclusion of purchase price allocation exercise:

The fair value amount of consideration paid/payable is ₹ 667.12 million (including deferred purchase consideration of ₹ 208.12 million.)

Particulars	Total
Current Assets
Cash and & cash equivalents	30.90
Trade receivables	70.62
Other current assets	171.75
Non-current assets
Property, Plant and Equipment	7.00
Deferred tax asset	0.11
Contractual rights	121.16
Goodwill	469.82
Current liabilities
Trade and other payables	119.95
Borrowings	84 29
Net assets	667 12

Entities acquisition b)

Persistent Systems Inc., a wholly owned Subsidiary of the Company acquired Software Corporation International LLC ("SCI") and its affiliate SCI Fusion360 LLC
("Fusion") (together referred to as "SCI Fusion Group"), on Octo

SCI brings deep domain consulting capabilities specializing in Payment solutions, integration, and support services for an impressive portfolio of leading US Banks. Additionally, Fusion360 provides application development, maintenance, and support for leading Payment platforms including IBM's Financial Transaction Manager.
These acquisitions enhance Persistent's capabilities and will

The fair value of amount of consideration is ₹ 3.388.17 million (including deferred purchase consideration of ₹ 792.37 million.)

Purchase price allocation :

Particulars	In ₹ Million
Current Assets
Cash and & cash equivalents	49.01
Trade receivables	201.62
Other current assets	15.81
Other current financial assets	4.55
Non-current assets
Property, Plant and Equipment	6.51
Acquired contratual rights	953.89
Non-compete rights	26.27
Goodwill	2,166.99
Subtotal	3,424.65
Current liabilities
Trade and other payables	36.48
Subtotal	36.48
Net assets taken over	3,388.17

Revenue of ₹ 560.61 million for the period ended March 31, 2022 is included in the financial statements. The profit included for the period ended March 31, 2022 is ₹ 64 96 million

Notes forming part of consolidated financial statements

c) Business acquisitions
a. Shree Infosoft Pvt. Ltd. and Shree Partners LLC

(1) On November 18, 2021 the Parent Company has 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., the wholly owned subsidiary of the Parent company, has entered i

Shree Partners LLC, USA, ("Shree Partners").

After the acquisition of business, the Group does not hold any equity interest in Shree Infosoft and Shree Partners. The acquisition will strengthen the Group's presence in innovative doud, infrastructure and solutions in artificial intelligence and machine learning. Its acquisiton will help the Group meet the growing needs of its clients and it also add a new point of presence in NCR, India, additional industry capabilities.

The fair value of amount of consideration paid/payable recognised on provisional basis is ₹ 485.24 million (including deferred purchase consideration of ₹ 198.45 million.).

(3) Based on provisional purchase price allocation exercise, the Group has recognised the following assets:

Particulars	In ₹ Million
Non-current assets
Property, Plant and Equipment	1.97
Provisional intangible assets*	483.27
Total assets	485 24

*Based on provisional purchase price allocation, the Group has recognised the provisional intangible assets represented by contractual rights amounting to ₹ 245.44 million and goodwill amounting to ₹ 237 83 million

b Data Glove Group

(1) On March 1, 2022 the Group acquired businesses from Data Glove IT Solutions Private Ltd, India, Data Glove Inc., USA and its affiliate entities based out of Australia, UK, Singapore
and Costa Rica (together referred to competencies in Azure Cloud Platform, Data Center, Application Development and Data Analytics, Application Integration, After the acquisition of business, the Group does not hold
any equity interest except in Data Glove IT transformation, enabling it to capture a larger share of this high growth market. This acquisition also broadens the Group's delivery capabilities with highly skilled talent, establishing a new nearshore delivery center in Costa Rica and expanding its presence in the US and India.
(2) 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.

The fair value of amount of consideration paid/payable recognised on provisional basis is ₹6,182.37 million (including deferred purchase consideration of ₹2,364.09 million.)

(3) Based on provisional purchase price allocation exercise, the Group has recognised the following assets:

Particulars	In ₹ Million
Current Assets
Cash and & cash equivalents	12.06
Trade receivables	19.67
Other current assets	0.08
Other current financial assets	34 30
Non-current assets
Property, Plant and Equipment	5.04
Provisional intangible assets*	6,168.47
Subtotal	6,239.62
Current liabilities
Trade and other payables	57.25
Subtotal	57 25
Net assets taken over	6,182.37

*Based on provisional purchase price allocation, the Group has recognised the provisional intangible assets represented by contractual rights amounting to ₹ 3,061.98 million and goodwill amounting to ₹ 3,106.49 million.

45 Ratio Analysis and its elements
Ratio	Denomination	Numerator	Denominator	March 31, 2022	March 31, 2021		% change Reason for variance (If more than $25\%$ )
(a) Current ratio	Number	Current Assets	Current Liabities	$\frac{99}{5}$	347	42 65%	Refer Note 1
b) Debt Equity ratio		Debt	Shareholder's Equity	1284%	017%	12 68%
(c) Debt Service Coverage ratio	Number	Earnings available for debt service**	Debt service within a year	605	332196	9982%	Refer Note 2
(d) Return on Equity ratio		Net Profit after tax	Average Shareholder's Equity	22.68%	1738%	530%
(e) Trade Receivables tumover ratio	Number	Revenue from operations	Average Trade receivables	592	732	1909%
f) Trade payables tumover ratio	Vumber	Cost of professionals and other expenses + non-cash Average Trade payables adjustments		298	349	1437%
(g) Net capital tumover ratio	Number	Revenue from operations	Working capital	404	220	8342%	Refer Note 3
(h) Net profit ratio		Net Profit after tax	Turnover	1209%	1076%	133%
i) Return on Capital employed		Profit before interest and tax	Average capital employed	2836%	2370%	4.66%
(j) Return on investment	వ	Income generated from treasury investments	Average invested funds in treasury investments	5.90%	5.19%	072%

"Earnings available for debt service = Profit Before Tax + Finance cost + Depreciation & Amortization - Other income - Lease payments

Note 1: Increase in current liabilities towards payable to selling shareholders has resulted into decrease in the ratio.

Note 2: Borrowings made during the year to fund the acquisitions have resulted into decrease in the ratio.

Note 3: Revenue growth during the year has resulted in improvement in ratio.

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 46 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 47 Financial Services Ltd. (referred to as "IL&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.
Finance costs include interest on lease liability of ₹ 84.06 million under finance costs (Previous year ₹ 57.53 million) and notional interest on amounts due 48 to selling shareholders ₹ 15 73 million (Previous year: Nil).
The financial statements are presented in ₹ million and decimal thereof except for per share information or as otherwise stated. 49
50 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 Anand Deshpande
SHASHI TADWALKAR SHASHI TADWALKAR Date: 2022.04.27

Shashi Tadwalkar

Partner Membership No.: - 101797 Dr. Anand Deshpande Chairman and Managing Director DIN: 00005721

Persistent Systems Limited

For and on behalf of the Board of Directors of

Sandeep Kalra

Place: Pune Date: April 27, 2022 Chief Executive Officer DIN: 02506494

Executive Director and

Sandeep Kalra

Place: Pune Date: April 27, 2022 Place: Pune Date: April 27, 2022

Independent Director

mara

Praveen Kadle

DIN: 00016814

Sunil Sapre il Sapre (Apr 27, 2022 17:19 GMT+5.5) Amit Atre it Atre (Apr 27, 2022 17:04 GMT+5.5)

Sunil Sapre Executive Director and Chief Financial Officer DIN: 06475949

Place: Pune

Date: April 27, 2022

Membership No. A20507 Place: Pune

Company Secretary

Amit Atre

Date: April 27, 2022

Place: Pune Date: April 27, 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

To the Members of Persistent Systems Limited

Report on the Audit of the Standalone Financial Statements

Opinion

1. We have audited the accompanying standalone financial statements of Persistent Systems Limited ('the Company'), which comprise the Balance Sheet as at 31 March 2022, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Cash Flow and the Statement of Changes in Equity for the year then ended, 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, the aforesaid standalone 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 conformity with the Indian Accounting Standards ('Ind AS') specified under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015 and other accounting principles generally accepted in India, of the state of affairs of the Company as at 31 March 2022, and its profit (including other comprehensive income), its cash flows and the changes in equity for the 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 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 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.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Chartered Accountants

We have determined the matters described below to be the key audit matters to be communicated in our report.

Sr. No	Key audit matter	How our audit addressed the key audit matter
1.	Accuracy of revenues and onerous	Our audit work included but was not restricted
	obligations in respect of fixed-price contracts	to the following procedures:
	Refer Notes 3.4 (i) notes forming part of the Standalone Financial Statements. The Company has entered into various fixed-price software development contracts, for which revenue is recognized by the Company using the percentage of completion computed as per the Input method prescribed under Ind AS	x Obtained an understanding of the systems, processes and controls implemented by management for recording and calculating revenue, and the associated unbilled revenue, unearned and deferred revenue balances, and onerous contract obligations.
	115 Revenue from Contracts with Customers. The said revenue recognition accounting policy involves exercise of significant judgement by the management and the following factors requiring significant auditor attention:	x Tested the design and operating effectiveness of related manual controls and involved auditor's experts to assess key information technology (IT) controls over:
	x High inherent risk around accuracy of revenue, given the customised and complex nature of these contracts and significant involvement of IT systems. x High estimation uncertainty relating to	¾ IT environment in which the business systems operate, including access controls, segregation of duties, program change controls, program development controls and IT operation controls; and
	determination of the progress of each contract, costs incurred till date and additional costs required to complete the remaining contract.	¾ Testing the IT controls over the completeness and accuracy of cost/efforts and revenue reports generated by the system; and
x Determination of recognition for fixed year audit.	x Identification and determination of onerous contracts and related obligations. unbilled revenue receivables and unearned revenue related to these contracts as at end of reporting period. Considering the materiality of the amounts involved, and significant degree of judgement and subjectivity involved in the estimates as mentioned above, we have identified revenue price contracts and determination of onerous contracts and related provisions, as a key audit matter for the current	¾ Testing the access and application controls pertaining to allocation of resources and budgeting systems which prevents the unauthorized changes to recording of efforts incurred and controls relating to the estimation of contract efforts required to complete the project. x Selected a sample of contracts and performed a retrospective review of efforts incurred with estimated efforts to identify significant variations and verify whether those variations have been considered in estimating the remaining efforts to complete the contract.
		x Reviewed a sample of contracts with unbilled revenues to identify possible delays in achieving milestones, which require change in estimated efforts to complete the remaining performance obligations.

Chartered Accountants

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

Persistent Systems Limited
Independent Auditor's Report on the Audit of the Standalone Financial Statements

Sr. No	Key audit matter	How our audit addressed the key audit matter
		x Performed analytical procedures for reasonableness of incurred and estimated efforts.
		x Evaluated management's identification of onerous contracts based on estimates tested as above.
		Evaluated the appropriateness of disclosures made in the financial statements with respect to revenue recognized during the year as required by applicable Indian Accounting Standards.
2.	Contingent liabilities relating to export incentive litigation	Our audit work included but was not restricted to the following procedures:
	Refer Note 36 – notes forming part of the Standalone Financial Statements regarding dispute on export incentives scrips awarded to the Company The Company in previous years has deposited under protest ₹ 296.55 million with the	x Obtained an understanding of the Company's process and the underlying controls for identification and monitoring of the pending litigations and completeness of such litigations for financial reporting
	Directorate General of Foreign Trade pursuant to the summons received from the Directorate of Revenue Intelligence ('DRI') and have made a corresponding application with the relevant authorities.	x Assessed the appropriateness of the Company's accounting policies relating to provisions and contingent liability disclosure, in accordance with the applicable Indian Accounting Standards
	The Company has received Show Cause Notice ('SCN') from DRI in the previous years, claiming that the Company is not eligible for the benefit under the scheme and if the Company has wrongfully claimed such benefits, it will be liable for such consequential penalties.	x Discussed developments during the year in the export incentive matter with the management and obtained opinion from the management's expert.
	The management based on their assessment and interpretation of various applicable rules, regulations, practices and precedents, and based	x Obtained the documents for various correspondences made between the Company and the respective departments.
	on various documents filed with relevant authorities to avail these claims, believes that they have a strong case and the export incentives of ₹ 296.55 million deposited under protest are fully recoverable. Accordingly, the duty paid under protest, has been presented as receivable from government authority and has been correspondingly disclosed under contingent liability.	x Involved auditor's expert to test the management's underlying assumptions in estimating the export incentive benefits and the possible outcome of the matters. This involved assessing the probability of an unfavourable outcome of a given proceeding and the reliability of estimates of related amounts which involved consideration of legal precedence and other rulings and expert opinion obtained
	In view of the amounts involved and uncertainty pertaining to the final outcome of the matter requiring significant management judgement in determination of recoverability of the aforesaid balance with respect to the said litigation, this matter has been considered as a key audit matter for the current year's audit.	by the management. x Assessed adequacy and appropriateness of the contingent liability disclosure in Note 36 to determine whether management has presented the facts and circumstances adequately.

Chartered Accountants

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

Information other than the Financial Statements and Auditor's Report thereon

The Company's Board of Directors are responsible for the other information. The other information comprises the information included in the Annual Report, but does not include the standalone financial statements and our auditor's report thereon. The Annual Report is expected to be made available to us after the date of this auditor's report.

Our opinion on the standalone financial statements does not cover the other information and we will not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statements, our responsibility is to read the other information identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.

When we read the Annual Report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance.

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

1. The accompanying standalone financial statements have been approved by the Company's Board of Directors. The Company's Board of Directors are responsible for the matters stated in section 134(5) of the Act with respect to the preparation and presentation of these standalone financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, changes in equity and cash flows of the Company in accordance with the Ind AS specified under section 133 of the Act and other accounting principles generally accepted in India. 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 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 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 intend to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
1. Those Board of Directors are also responsible for overseeing the Company's financial reporting process.

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

Our objectives are to obtain reasonable assurance about whether the 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 financial statements.

Chartered Accountants

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. Under section 143(3)(i) of the Act we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls system with reference to financial statements in place 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 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 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 financial statements, including the disclosures, and whether the 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/financial statements of the Company to express an opinion on the financial statements.
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.
1. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

As required by section 197(16) of the Act based on our audit, we report that the Company has paid remuneration to its directors during the year in accordance with the provisions of and limits laid down under section 197 read with Schedule V to the Act.

Chartered Accountants

1. As required by the Companies (Auditor's Report) Order, 2020 ('the Order') issued by the Central Government of India in terms of section 143(11) of the Act we give in the Annexure 'A', a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
1. Further to our comments in Annexure A, as required by section 143(3) of the Act based on our audit, we report, to the extent applicable, that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit of the accompanying standalone financial statements;
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
c) The standalone financial statements dealt with by this report are in agreement with the books of account;
d) In our opinion, the aforesaid standalone financial statements comply with Ind AS specified under section 133 of the Act;
e) On the basis of the written representations received from the directors and taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2022 from being appointed as a director in terms of section 164(2) of the Act;
f) With respect to the adequacy of the internal financial controls with reference to financial statements of the Company as on 31 March 2022 and the operating effectiveness of such controls, refer to our separate Report in Annexure B wherein we have expressed an unmodified opinion; and
g) With respect to the other matters to be included in the Auditor's Report in accordance with rule 11 of the Companies (Audit and Auditors) Rules, 2014 (as amended), in our opinion and to the best of our information and according to the explanations given to us:
- i. the Company, as detailed in note 36 to the standalone financial statements, has disclosed the impact of pending litigations on its financial position as at 31 March 2022;
- ii. the Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses as at 31 March 2022;
- iii. there has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company during the year ended 31 March 2022;
- iv. (a)….The management has represented that, to the best of its knowledge and belief, no funds ……..have been advanced or loaned or invested (either from borrowed funds or securities ……..premium or any other sources or kind of funds) by the Company to or in any person(s) or ……..entity(ies), including foreign entities ('the intermediaries'), with the understanding, whether ……..recorded in writing or otherwise, that the intermediary shall, whether, directly or indirectly ……..lend or invest in other persons or entities identified in any manner whatsoever by or on ……..behalf of the Company ('the Ultimate Beneficiaries') or provide any guarantee, security or ……..the like on behalf the Ultimate Beneficiaries;
- (b) The management has represented that, to the best of its knowledge and belief, no funds have been received by the Company from any person(s) or entity(ies), including foreign entities ('the Funding Parties'), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ('Ultimate Beneficiaries') or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and

Chartered Accountants

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

(c) Based on such audit procedures performed as considered reasonable and appropriate in the circumstances, nothing has come to our attention that causes us to believe that the management representations under sub-clauses (a) and (b) above contain any material misstatement.
V. The dividend declared and paid during the year ended 31 March 2022 by the Company is in compliance with section 123 of the Act.

For Walker Chandiok & Co LLP

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

SHASHI TADWALKAR Digitally signed by SHASHI TADWALKAR Date: 2022.04.27 21:46:20 +05'30'

Shashi Tadwalkar Partner Membership No:101797

UDIN:22101797AHXPOD1460

Place: Pune Date: 27 April 2022

Chartered Accountants

Annexure A referred to in Paragraph 14 of the Independent Auditor's Report of even date to the members of Persistent Systems Limited on the standalone financial statements for the year ended 31 March 2022

In terms of the information and explanations sought by us and given by the Company and the books of account and records examined by us in the normal course of audit, and to the best of our knowledge and belief, we report that:

(i) (a) (A) The Company has maintained proper records showing full particulars, including quantitative details and situation of property, plant and equipment and right of use assets.
(B) The Company has maintained proper records showing full particulars of intangible assets.
(b) The Company has a regular program of physical verification of its property, plant and equipment, right of use assets under which the assets are physically verified in a phased manner over a period of three years, which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. In accordance with this program, certain property, plant and equipment, right of use assets were verified during the year and no material discrepancies were noticed on such verification.
(c) The title deeds of all the immovable properties held by the Company (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee) are held in the name of the Company.
(d) The Company has not revalued its Property, Plant and Equipment and Right of Use assets or intangible assets during the year.
(e) No proceedings have been initiated or are pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder. Accordingly, reporting under clause 3(i)(e) of the Order is not applicable to the Company.
(ii) (a) The Company does not hold any inventory. Accordingly, reporting under clause 3(ii) of the Order is not applicable to the Company.
(b) The Company has not been sanctioned working capital limits by banks or financial institutions on the basis of security of current assets during any point of time of the year. Accordingly, reporting under clause 3(ii)(b) of the Order is not applicable to the Company.
(iii) (a) The Company has provided loans or advances in the nature of loans, guarantee to two companies and one other Party. The details of the same are given below:

Particulars	Guarantees ₹ million	Loans ₹ million
Aggregate amount provided during the year - Subsidiary - Others	-	420.67 3,522.00
Balance outstanding as at balance sheet date - Subsidiary - Others	770.78 -	420.67 3,522.00

(b) The investments made, guarantees provided, security given and terms and conditions of the grant of all loans and advances in the nature of loans and guarantees provided are not, prima facie, prejudicial to the Company's interest.

Chartered Accountants

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

(c) In respect of loans and advances in the nature of loans granted by the Company, the schedule of repayment of principal and payment of interest has been stipulated and the repayments/receipts of principal and interest are regular.
(d) There is no overdue amount in respect of loans or advances in the nature of loans granted to such companies, firms, LLPs or other parties.
(e) The Company has granted loans or advances in the nature of loans which had fallen due during the year and was/were repaid on or before the due date. Further, no fresh loans were granted to any party to settle the overdue loans/advances in nature of loan.
(f) The Company has not granted any loans or advances in the nature of loans, which are repayable on demand or without specifying any terms or period of repayment.
(iv) In our opinion, and according to the information and explanations given to us, the Company has complied with the provisions of sections 185 and 186 of the Act in respect of loans, investments, guarantees and security, as applicable.
(v) The Company has not accepted any deposits or there is no amount which has been considered as deemed deposit within the meaning of sections 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules, 2014 (as amended). Accordingly, reporting under clause 3(v) of the Order is not applicable to the Company.
(vi) The Central Government has not specified maintenance of cost records under sub-section (1) of section 148 of the Act, in respect of Company's products/business activity. Accordingly, reporting under clause 3(vi) of the Order is not applicable.

vii) (a) In our opinion, and according to the information and explanations given to us, undisputed statutory dues including goods and services tax, provident fund, employees' state insurance, income-tax, sales-tax, service tax, duty of customs, duty of excise, value added tax, cess and other material statutory dues, as applicable, have generally been regularly deposited with the appropriate authorities by the Company, though there have been slight delays in a few cases. Further, no undisputed amounts payable in respect thereof were outstanding at the year-end for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us, there are no statutory dues referred in sub-clause (a) which have not been deposited with the appropriate authorities on account of any dispute except for the following:

Name of the statute	Nature of dues	Gross Amount (₹ Million)	Amount paid under Protest (₹Million)	Period to which the amount relates	Forum where dispute is pending
The Income Tax Act, 1961	Income tax	12.52	-	2008-09	Honourable High Court
The Income Tax Act, 1961	Income tax	28.69	-	2009-10	Honourable High Court
The Income Tax Act, 1961	Income tax	19.06	-	2010-11	Honourable High Court
The Income Tax Act, 1961	Income tax	11.68	-	2012-13	Honourable High Court

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

Name of the statute	Nature of dues	Gross Amount (₹ Million)	Amount paid under Protest (₹Million)	Period to which the amount relates	Forum where dispute is pending
The Income Tax Act, 1961	Income tax	21.84	25.20	2013-14	Honourable High Court
The Income Tax Act, 1961	Income tax	6.73	-	2013-14	Assessing officer (AO)
The Income Tax Act, 1961	Income tax	32.83	32.83	2014-15	Honourable High Court
The Income Tax Act, 1961	Income tax	9.31	9.31	2014-15	Assessing officer (AO)
The Income Tax Act, 1961	Income tax	7.02	1.5	2015-16	Honourable High Court
The Income Tax Act, 1961	Income tax	19.42	-	2015-16	Assessing officer (AO)
The Income Tax Act, 1961	Income tax	277.22	-	2017-18	Commissioner (Appeals)
The Income Tax Act, 1961	Income tax	379.74	-	2018-19	Commissioner (Appeals)
Maharashtra Value added Tax Act, 2002	Sales Tax	6.6	6.6	2005-06, 2006- 07, 2007-08, 2008-09, and 2014-15	Customs, Excise and Service Tax Appellate Tribunal
Maharashtra Value added Tax Act, 2002	Sales Tax	6.8	6.8	2010-11, 2013- 14 and 2016-17	Joint Commissioner (Appeals) - VAT
The Customs Act, 1962	Export incentive	296.55	296.55	2015-16, 2016- 17 and 2017-18	Directorate of Revenue Intelligence
The Finance Act, 1994	Service tax	173.78	165.58	2014-15	Central Excise and Service Tax Appellate Tribunal

(viii) According to the information and explanations given to us, no transactions were surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (43 of 1961) which have not been recorded in the books of accounts.
(ix) (a) According to the information and explanations given to us, the Company has not defaulted in repayment of its loans or borrowings or in the payment of interest thereon to any lender.
(b) According to the information and explanations given to us including representation received from the management of the Company, and on the basis of our audit procedures, we report that the Company has not been declared a willful defaulter by any bank or financial institution or other lender.

Chartered Accountants

(c) In our opinion and according to the information and explanations given to us, money raised by way of term loans were applied for the purposes for which these were obtained.
(d) In our opinion and according to the information and explanations given to us, and on an overall examination of the financial statements of the Company, funds raised by the Company on short term basis have not been utilised for long term purposes.
(e) According to the information and explanations given to us and on an overall examination of the financial statements of the Company, the Company has not taken any funds from any entity or person on account of or to meet the obligations of its subsidiaries.
(f) According to the information and explanations given to us, the Company has not raised any loans during the year on the pledge of securities held in its subsidiaries.
(x) (a) The Company has not raised any money by way of initial public offer or further public offer (including debt instruments), during the year. Accordingly, reporting under clause 3(x)(a) of the Order is not applicable to the Company.
(b) According to the information and explanations given to us, the Company has not made any preferential allotment or private placement of shares or (fully, partially or optionally) convertible debentures during the year. Accordingly, reporting under clause 3(x)(b) of the Order is not applicable to the Company.
(xi) (a) To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company or on the Company has been noticed or reported during the period covered by our audit.
(b) No report under section 143(12) of the Act has been filed with the Central Government for the period covered by our audit.
(c) According to the information and explanations given to us including the representation made to us by the management of the Company, there are no whistle-blower complaints received by the Company during the year.
(xii) The Company is not a Nidhi Company and the Nidhi Rules, 2014 are not applicable to it. Accordingly, reporting under clause 3(xii) of the Order is not applicable to the Company.
(xiii) In our opinion and according to the information and explanations given to us, all transactions entered into by the Company with the related parties are in compliance with sections 177 and 188 of the Act, where applicable. Further, the details of such related party transactions have been disclosed in the standalone financial statements, as required under Related Party Disclosures specified in Companies (Indian Accounting Standards) Rules 2015 as prescribed under section 133 of the Act.
(xiv) (a) In our opinion and according to the information and explanations given to us, the Company has an internal audit system as required under section 138 of the Act which is commensurate with the size and nature of its business.
(b) We have considered the reports issued by the Internal Auditors of the Company till date for the period under audit.
(xv) According to the information and explanation given to us, the Company has not entered into any noncash transactions with its directors or persons connected with them and accordingly, provisions of section 192 of the Act are not applicable to the Company.

Chartered Accountants

(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, reporting under clause 3(xvi) of the Order is not applicable to the Company.
(xvii) The Company has not incurred any cash loss in the current as well as the immediately preceding financial year.
(xviii) There has been no resignation of the statutory auditors during the year. Accordingly, reporting under clause 3(xviii) of the Order is not applicable to the Company.
(xix) According to the information and explanations given to us and on the basis of the financial ratios, ageing and expected dates of realisation of financial assets and payment of financial liabilities, other information accompanying the standalone financial statements, our knowledge of the plans of the Board of Directors and management, we are of the opinion that no material uncertainty exists as on the date of the audit report that Company is capable of meeting its liabilities existing at the date of balance sheet as and when they fall due within a period of one year from the balance sheet date. We, however, state that this is not an assurance as to the future viability of the company. We further state that our reporting is based on the facts up to the date of the audit report and we neither give any guarantee nor any assurance that all liabilities falling due within a period of one year from the balance sheet date, will get discharged by the company as and when they fall due.
(xx) According to the information and explanations given to us, the Company does not have any unspent amount in respect of any ongoing or other than ongoing project as at the expiry of the financial year. Accordingly, reporting under clause 3(xx) of the Order is not applicable to the Company.
(xxi) The reporting under clause (xxi) is not applicable in respect of audit of standalone financial statements of the Company. Accordingly, no comment has been included in respect of said clause under this report.

For Walker Chandiok & Co LLP Chartered Accountants

Firm's Registration No:001076N/N500013

SHASHI TADWALKAR Digitally signed by SHASHI TADWALKAR Date: 2022.04.27 21:46:51 +05'30'

Shashi Tadwalkar Partner Membership No:101797

UDIN:22101797AHXPOD1460

Place: Pune Date: 27 April 2022

Chartered Accountants

Annexure B to the Independent Auditor's Report of even date to the members of Persistent Systems Limited on the standalone financial statements for the year ended 31 March 2022

Independent Auditor's Report on the internal financial controls with reference to financial statements under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ('the Act')

In conjunction with our audit of the standalone financial statements of Persistent Systems Limited ('the Company') as at and for the year ended 31 March 2022, we have audited the internal financial controls with reference to financial statements of the Company as at that date.

Responsibilities of Management and Those Charged with Governance for Internal Financial Controls

The Company's Board of Directors is responsible for establishing and maintaining internal financial controls based on internal financial controls with reference to financial statements criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accounts of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of the Company's business, including adherence to the Company's policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the act.

Auditor's Responsibility for the Audit of the Internal Financial Controls with Reference to Financial Statements

1. Our responsibility is to express an opinion on the Company's internal financial controls with reference to financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India ('ICAI') prescribed under Section 143(10) of the Act, to the extent applicable to an audit of internal financial controls with reference to financial statements, and the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting ('the Guidance Note') issued by the ICAI. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls with reference to financial statements were established and maintained and if such controls operated effectively in all material respects.
1. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls with reference to financial statements and their operating effectiveness. Our audit of internal financial controls with reference to financial statements includes obtaining an understanding of such internal financial controls, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
1. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company's internal financial controls with reference to financial statements.

Meaning of Internal Financial Controls with Reference to Financial Statements

A company's internal financial controls with reference to financial statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal financial controls with reference to financial statements include those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as

Chartered Accountants

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

Annexure B (Contd)

Inherent Limitations of Internal Financial Controls with Reference to Financial Statements

Because of the inherent limitations of internal financial controls with reference to financial statements, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls with reference to financial statements to future periods are subject to the risk that the internal financial controls with reference to financial statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion, the Company has, in all material respects, adequate internal financial controls with reference to financial statements and such controls were operating effectively as at 31 March 2022, based on internal financial controls with reference to financial statements criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India.

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

SHASHI TADWALKAR Digitally signed by SHASHI TADWALKAR Date: 2022.04.27 21:47:08 +05'30'

Shashi Tadwalkar Partner Membership No:101797

UDIN:22101797AHXPOD1460

Place: Pune Date: 27 April 2022

Chartered Accountants

	Notes	As at	As at
		March 31, 2022	March 31, 2021
		In ₹ Million	In ₹ Million
ASSETS
Non-current assets
Property, Plant and Equipment	5.1	2,733.61	2,270.24
Capital work in progress	5.2	1,071.02	112.33
Right of Use assets	5.3	671 63	314.62
Other Intangible assets	5.4	780.73 5,256.99	171.65 2,868.84
Financial assets
- Investments	6	8,734.81	7.779.54
- Loans	$\overline{7}$	3,943.68	$\overline{a}$
- Other non-current financial assets	8	226.68	77.99
Deferred tax assets (net)	9	266.72	245.74
Other non-current assets	10	557.98	419.73
		18,986.86	11,391,84
Current assets
Financial assets
- Investments	11	4,346.91	6,374.95
- Trade receivables (net)	12	4,426.84	2,966.26
- Cash and cash equivalents	13	563.67	862.72
- Bank balances other than cash and cash equivalents	14	6,038.02	7,387.00
- Loans	15	ä,
- Other current financial assets	16	3,708.73	2,113.12
Other current assets	17	1,371.26	1,656.93
		20,455.43	21,360.98
TOTAL		39,442.29	32,752.82
EQUITY AND LIABILITIES
EQUITY
Equity share capital	4	764.25	764.25
Other equity		32,424.60	26,890.99
		33,188.85	27,655.24
LIABILITIES
Non-current liabilities
Financial liabilities
- Borrowings	18	3.70	5.54
- Lease liabilities	19	61175	304.72
Provisions	20	245.54	240.94
		860.99	551 20
Current liabilities
Financial liabilities
- Borrowings	18	1.93	1.96
- Lease liabilities	19	146.51	73.82
Trade payables	21
Dues of micro enterprises and small enterprises		10.30	30.20
Dues of creditors other than micro enterprises and small enterprises		844.68	908.20
- Other financial liabilities Other current liabilities	22 23	366.88	395.46
Provisions	24	1,509.04 2,269.73	1,679.01 1,145.59

Current tax liabilities (net)		243.38 5,392.45	312.14 4,546.38

TOTAL		39,442.29	32,752.82
Summary of significant accounting policies	3

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

As per our report of even date

Shashi Tadwalkar
Partner

Membership No.: 101797

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

SHASHI Digitally signed
TADWAL TADWALKAR
KAR 20220427 Anden Determined Response
KAR 21:4725+0530

Sandeep Kalra . 2022 18:07 GMT+5.5) Sandeep Kalra (Apr⊉

DIN: 00005721

Dr. Anand Deshpande Sandeep Kalra
Chairman and Managing Executive Director and
Director Chief Executive Officer

Persistent Systems Limited

For and on behalf of the Board of Directors of

male Praveen Kadle
Independent Director DIN: 02506494

DIN: 00016814

Place: Pune
Date : April 27, 2022

Place: Pune Place: Pune
Date : April 27, 2022 Date: April 27, 2022

Sunil Sapre		Amit Atre
Sunil Sapre (Apr 27, 2022 17:18 GMT+5.5)	Sunil Sapre Executive Director and Chief Financial Officer	Amit Atre (Apr 27, 2022 16:56 GMT+5.5) Amit Atre Company Secretary
	DIN: 06475949	Membership No. A20507
Place: Pune Date: April 27, 2022	Place: Pune Date: April 27, 2022	Place: Pune Date: April 27, 2022

Persistent Systems Limited
STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED MARCH 31, 2022

	Notes	For the year ended
		March 31, 2022	March 31, 2021
		In ₹ Million	In ₹ Million
Income
Revenue from operations (net)	25	35.754.80	24,796.08
Other income	26	1,324.57	1,176,16
Total income (A)		37,079.37	25,972.24
Expenses
Employee benefits expense	27.1	21,882.72	14,093.21
Cost of professionals	27.2	1,461.91	1,775.07
Finance costs (refer note 33)		68.78	38.21
Depreciation and amortization expense	5.5	837.57	566.79
Other expenses	28	3,707.78	2,818.76
Total expenses (B)		27,958.76	19.292.04
Profit before tax (A B)		9,120.61	6,680.20
Tax expense Current tax
		2,236,61	1,684.00
Tax charge in respect of earlier years		1348	2.74
Deferred tax charge / (credit)		11.86	(57.40)
Total tax expense (refer note 31)		2,261.95	1,629.34
Profit for the year (C)		6.858.66	5,050.86
Other comprehensive income Items that will not be reclassified to profit or loss (D)
- Remeasurements of the defined benefit liabilities / asset (net of tax)		(190.82)	15.93
		(190.82)	15.93
Items that will be reclassified to profit or loss (E)
- Effective portion of cash flow hedge (net of tax)		(97.66)	383.55
		(97.66)	383.55
Total other comprehensive income for the year $(D) + (E)$		(288, 48)	399.48
Total comprehensive income for the year $(C) + (D) + (E)$		6,570.18	5,450.34

Earnings per equity share [Nominal value of share ₹10 (Previous year: ₹10)]	29
Basic (In ₹)		89.74	66.09
Diluted (In ₹)		89.74	66.09
Summary of significant accounting policies	3
The accompanying notes are an integral part of the financial statements.
As ner our renort of even date

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

JI IMJHI Digitally signed
TADWA TADWARER Anand Deschpande
LKAR 213786-0030

Shashi Tadwalkar Partner

Membership No: 101797

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

Sandeep Kalra (Apr⊉ 2022 18:07 GMT+5.5

male

Praveen Kadle

DIN: 00016814

Independent Director

Dr. Anand Deshpande Sandeep Kalra Chairman and Managing Director DIN: 00005721

Place: Pune Date: April 27, 2022 Executive Director and Chief Executive Officer DIN: 02506494 Place: Pune

Place: Pune Date: April 27, 2022 Date: April 27, 2022

Sunil Sapre Amit Atre Sunil Sapre (Apr 27, 2022 17:18 GMT+5.5) Amit Atre (Apr 27, 2022 16:56 GMT+5.5) Sunil Sapre
Executive Director and Amit Atre Company Secretary Chief Financial Officer DIN: 06475949 Membership No. A20507 Place: Pune Place: Pune Place: Pune Date: April 27, 2022 Date: April 27, 2022 Date: April 27, 2022

Persistent Systems Limited
CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2022

		For the year ended
		March 31, 2022	March 31, 2021
		In ₹ Million	In ₹ Million
Cash flows from operating activities
Profit before tax		9,120.61	6,680.20
Adiustments for:
Interest income		(593.58)	(548.82)
Finance cost		68.78	38.21
Dividend income		(53.16)	(131.45)
Depreciation and amortization expense		837 57	566.79
Unrealised exchange loss (net)		26.38	151.02
Exchange loss / (gain) on derivative contracts		79.38	(169.80)
Exchange loss on translation of foreign currency cash and cash equivalents		0.29	23.15
Bad debts		12.12	46.96
Change in provision for expected credit loss (net) Employee stock compensation expenses		(29.97) 739.52	(20.20) 236 33
Remeasurements of the defined benefit liabilities / assets (before tax effects)		(190.82)	15.93
Excess provision in respect of earlier years written back		(15.53)	$\blacksquare$
Profit on sale/ fair valuation of financial assets designated as FVTPL		(338.78)	(344.43)
(Profit) / loss on sale of Property, Plant and Equipment (net)		(12.31)	8.10
Operating profit before working capital changes		9.650.50	6,551.99
Movements in working capital :
Increase In other non current assets		(40.48)	(78.73)
(Increase) / Decrease in other non current financial assets		(70.68)	37.02
(Increase) / Decrease in other current financial assets		(1,594,52)	363.88
Decrease / (Increase) in other current assets		285.67	(171.56)
Increase in trade receivables		(1,470.96)	(312.65)
Increase in trade payables, current liabilities and non current liabilities		273.76	1,059.46
Increase in provisions		1.144.27	613.36
Operating profit after working capital changes		8,177.56	8.062.77
Direct taxes paid (net of refunds)		(2,318.85)	(1,494.81)
Net cash generated from operating activities	(A)	5,858.71	6,567.96
Cash flows from investing activities
Payment towards capital expenditure (including intangible assets, capital advances and capital creditors)		(2,728.84)	(707.24)
Acquisition assets through business combination		(628.87)
Proceeds from sale of Property, Plant and Equipment		13 19	4.13
Loan to ESOP trust		(3,522,00)
Investment in wholly owned subsidiaries		(645.52)	(376.61)
Purchase of bonds		(711.90)	(712.18)
Proceeds from sale of bonds		499.95	350.53
Investments in mutual funds		(33, 456, 80)	(24, 591, 91)
Proceeds from sale / maturity of mutual funds		35,762.24	25,068.92
Maturity / (Investments) in bank deposits having original maturity over three months		1,249.81	(4,464,82)
Investment in deposit with financial institutions		(100.00)	÷,
Inter corporate deposits given to wholly owned subsidiary Interest received		(419.59) 709.07	359.89

Dividend received		53.16 (3,926.10)	131.45
Net cash used in investing activities	(B)		(4,937,84)
Cash flows from financing activities
Repayment of long term borrowings		(1.84)	(4.54)
Specific project related grant received			9.00
Payment of lease liabilities		(173.67)	(173.11)
Dividend paid		(1,987.05)	(1,069.95)
Interest paid		(68.81)	(38.28)
Net cash used in financing activities	(C)	(2, 231.37)	(1, 276.88)

CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2022

	For the year ended
	March 31, 2022	March 31, 2021
	In ₹ Million	In ₹ Million
Net (decrease)/ increase in cash and cash equivalents $(A + B + C)$	(298, 76)	353.24
Cash and cash equivalents at the beginning of the year	862.72	532.63
Effect of exchange differences on translation of foreign currency cash and cash equivalents	(0.29)	(23.15)
Cash and cash equivalents at the end of the year	563.67	862.72
Components of cash and cash equivalents
Cash on hand (refer note 13)	0.09	0.10
Balances with banks
On current accounts # (refer note 13)	302.74	360.22
On saving accounts (refer note 13)	1.64	1.33
On deposit account with maturity of less than three months (Refer note 13)	$\blacksquare$	292.50
On Exchange Earner's Foreign Currency accounts (refer note 13)	259.20	208.57
Cash and cash equivalents	563.67	862.72

Of the cash and cash equivalent balance as at March 31, 2022, the Company can utilise ₹ 35.75 million (Previous year: ₹ 154.39 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 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

SHASHI TADWALKAR Date: 2022.04.27

Digitally signed by
SHASHI TADWALKAR Anand Deshpande

male Praveen Kadle

DIN: 00016814

Place: Pune Date: April 27, 2022

Independent Director

Shashi Tadwalkar Partner

Membership No.: 101797

Chairman and Managing Director DIN: 00005721 Place: Pune

Sunil Sapre

Financial Officer

Date: April 27, 2022

Dr. Anand Deshpande

Place: Pune Date: April 27, 2022 Date: April 27, 2022

Amit Atre

Sandeep Kalra Executive Director and

DIN: 02506494

Chief Executive Officer

Sunil Sapre Sunil Sapre (Apr 27, 2022 17:18 GMT+5.5)

Place: Pune Date: April 27, 2022

Amit Atre

DIN: 06475949 Membership No. A20507 Place: Pune

Executive Director and Chief Company Secretary

Place: Pune Date: April 27, 2022

Amit Atre (Apr 27, 2022 16:56 GMT+5.5)

Persistent Systems Limited
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED MARCH 31, 2022

A. Equity share capital
(Refer note 4)

$ U \cap C \subset U \cap C \rightarrow 1$		(In ₹ Million)
Balance as at April 1, 2021	Changes in equity share capital during the year	Balance as at March 31, 2022

764.25	$\blacksquare$	764 25

(In ₹ Million)

Balance as at April 1, 2020	Changes in equity share capital during the year	Balance as at March 31, 2021

764.25	$\sim$	764.25

Persistent Systems Limited
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED MARCH 31, 2022

B. Other equity

							(In ₹ Million)
Particulars			Items of other comprehensive income	Total
	General reserve	Share options	Capital	Special Economic Zone	Retained earnings	Effective portion of
		outstanding	redemption	re-investment reserve		cash flow hedges
		reserve	reserve
Balance as at April 1, 2021	14,356,35	471.20	35.75	$\sim$	11,888,23	139.46	26,890.99
Profit for the year			۰	۰	6.858.66		6.858.66
Other comprehensive income for the year					(190.82)	(9766)	(288.48)
Dividend					(1,987.05)		(1,987.05)
Transfer to general reserve	2.743.46			۰	(2.743.46)
Adjustments towards employees stock options	276.84	(276.84)
Employee stock compensation expenses		739.52	$\overline{\phantom{a}}$	٠			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	$\sim$	13.825.56	41.80	32,424.60

							(In ₹ Million)
Particulars			tems of other comprehensive income	Total
	General reserve	Share options	Capital	Special Economic Zone	Retained earnings	Effective portion of
		outstanding reserve	redemption reserve	re-investment reserve		cash flow hedges
Balance as at April 1, 2020	12.227.23	290.51	35.75	49.95	9.861.78	(244.09)	22,221.13
Profit for the vear				۰	5,050.86		5.050.86
Other comprehensive income for the year					15.93	383.55	399.48
Dividend			$\sim$	٠	(1,069.95)		(1,069.95)
Transfer to retained earnings				(49.95)	49.95
Transfer to general reserve	2.020 34		$\sim$	-	(2.020.34)
Adjustments towards employees stock options	108.78	(108.78)
Employee stock compensation expenses		236.33		٠			236.33
Employee stock compensation expenses of subsidiaries		53.14		۰			53.14
Balance at March 31, 2021	14.356.35	471.20	35.75	. .	11.888.23	139.46	26,890.99

Summary of significant accounting policies - Refer note 3

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

As per our report of even date

For Walker Chandiok & Co LLP Chartered Accountants
Firm Registration No.: 001025NAb302013pande Digitally signed by
SHASHI TADWALKAR SHASHI TADWALKAR Date: 2022.04.27 Shashi Tadwalkar

Partner

Membership No.: 101797

For and on behalf of the Board of Directors of Persistent Systems Limited Sandeep Kalra ي

. 2022 18:07 GMT+5.5)

Sandeep Kalra (Apr $\not!!!!!/$

Director

SUNII SADYE
Sunil Sapre (Apr 27, 2022 17:18 GMT+5.5)

DIN: 00005721

Sunil Sapre

DIN: 06475949

Place: Pune
Date : April 27, 2022

Dr. Anand Deshpande Chairman and Managing may

Praveen Kadle
Independent Director

DIN: 00016814

Place: Pune
Date : April 27, 2022

Amit Atre

DIN: 02506494

Amit Atre (Apr 27, 2022 16:56 GMT+5.5) Amit Atre Executive Director and
Chief Financial Officer Company Secretary Membership No. A20507

Sandeep Kalra
Executive Director and
Chief Executive Officer

Place: Pune
Date : April 27, 2022

Place: Pune
Date : April 27, 2022 Place: Pune
Date : April 27, 2022

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED MARCH 31, 2022

Nature and purpose of reserves

a) General reserve

General reserve represents amounts transferred from profit for the year and from Share options outstanding reserve on 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) Special Economic Zone re-investment reserve

e) Cash flow hedge reserve

Notes forming part of financial statements

Nature of operations $\mathbf{1}$

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. Company offers complete product life cycle services.

The Board of Directors approved the financial statements for the year ended March 31, 2022 and authorised for issue on April 27, 2022.

$\overline{2}$ Basis of preparation

$2.1$ Historical cost convention

The financial statements of the Company have been prepared on an accrual basis and under the historical cost convention except for certain financial instruments and contingent consideration in business combination, 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 year and are 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 financial statements are prepared in accordance with Indian Accounting Standard (Ind AS), the provisions of the Companies Act, 2013 ("the Act") (to the extent notified) and guidelines issued by the Securities and Exchange Board of India (SEBI). The Ind AS are prescribed under Section 133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and relevant amendment rules issued thereafter.

$23$ New and amended standards adopted by the Company

The Company has applied the following amendment to Ind AS for the first time in it's annual reporting period commencing 1 April 2021:

-Extension of COVID-19 related concessions amendments to Ind AS 116
-Interest rate benchmark reform amendments to Ind AS 109, Financial Instruments, Ind AS 107, Financial
Instruments: Disclosures, Ind AS 104, Insurance Contracts and Ind AS 116, Leases.

The amendments listed above did not have any impact on the amounts recognised in prior periods and are not expected to significantly affect the current or future periods

$2.4$ New amendments issued but not effective

$2.5$ Reclassifications consequent to amendments to Schedule III

Consequent to above, the company has changed the classification/presentation of (i) current maturities of long-term
borrowings (ii) security deposits, in the current 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 accrued were included in 'other financial liabilities' line item.

The company 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)	March 31, 2021 (Previously Reported)	Increase / (Decrease)	March 31, 2021 (Restated)
Non-current assets
Loans	52.23	(52.23)
Other non-current financial assets	25.76	52.23	77.99
Current assets
Loans	49.33	(49.33)
Other current financial assets	2.063.79	49.33	2.113.12
Current liabilities
Other financial liabilities	397.42	(1.96)	395.46
Borrowings		1.96	1.96

Notes forming part of financial statements

Significant accounting policies $\overline{\mathbf{3}}$
$3.1$ 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 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 Management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which changes are made and, if material, their effects are disclosed in the notes to the financial statements.

$3.2$ Estimation of uncertainties relating to the global health pandemic from COVID-19:

The Company has considered all possible impacts of COVID-19 in the preparation of these financial statements, including but not limited to its assessment of, liquidity and going concern assumption, recoverable values of its financial and nonfinancial assets, impact on revenue recognition owing to changes in cost budgets of fixed price contracts, impact on
leases, impact on effectiveness of its hedges and impact on the recoverable amount of goodwill. The Compa carried out this assessment based on available internal and external sources of information up to the date of approval of these financial statements and believes that the impact of COVID-19 is not material to these financial statements and
expects to recover the carrying amount of its assets. The impact of COVID-19 on the financial statements that estimated as at the date of approval of these financial statements owing to the nature and duration of COVID-19.

$3.3$ Critical accounting estimates

a) Revenue recognition

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 Company's costs to fulfil the contract is not even through the per 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 financial statements

b) 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 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.

Summary of significant accounting policies $3.4$

a) Current versus non-current classification

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 deducted in arriving at the purchase price.

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 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.

d) Depreciation and amortization

Depreciation on Property, Plant and Equipment is provided using the Straight Line Method ('SLM') over the useful lives of the assets estimated by the management.

The management estimates the useful lives for the Property, Plant and Equipment as follows:

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

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 asset. All other borrowing costs are expensed in the period in which they occur.

Notes forming part of financial statements

f) Leases

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

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

Where the Company is a lessee

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 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.

Company as a lessor

Notes forming part of financial statements

g) Impairment of Non-financial 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

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 at fair value through profit or loss (FVTPL)

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 - "Financial Instruments" are satisfied. Gains or losses on liabilities held for trading are recognized in statement of profit and loss

Investments in subsidiaries, associates and joint ventures

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

Notes forming part of financial statements

Derivative financial instruments

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 s 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 pavable is recognised in statement of profit or loss.

Financial guarantee contracts

Fair value of financial instruments

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.

Notes forming part of financial statements

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 t 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.

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 includin 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 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.

Notes forming part of financial statements

Contract balances

Contract assets

Contract liabilities

j) Government grants

k) Foreign currency translation

Foreign currency transactions and balances

Initial recognition

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

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 comprehensive income in the reporting period in which they occur. Remeasurements are not reclassified to profit and loss subsequently.

Superannuation

Notes forming part of financial statements

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 accumulating leave encashment is recognized in the period in which the absences occur.

Long service awards

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) Seament reporting

Notes forming part of financial statements

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 righ 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.

p) Provisions

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.

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

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 equitysettled transactions at each reporting date until the vesting date reflects the extent to which the vesting period has expired and the Company's best estimate of the number of equity instruments that will ultimately vest.

The expense or credit recognized in the statement of profit and loss for 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 optio 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.

Notes forming part of financial statements

s) Equity

t) Dividend

u) 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 conside transferred and the amount of any non-controlling interest in the acquiree at fair value.

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 reas business combination as a bargain purchase. In other cases, the bargain purchase is recognized directly in equity as capital reserve.

v 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 impairment losses.

Notes forming part of financial statements

4. Share Capital

	As at	As at
	March 31, 2022	March 31, 2021
	In ₹ Million	In ₹ Million

Authorized shares (No. in million)
200 (Previous year:200) equity shares of ₹10 each	2,000.00	2,000.00
	2.000.00	2,000.00
Issued, subscribed and fully paid-up shares (No. in million)
76.43 (Previous year: 76.43) equity shares of ₹10 each	764.25	764.25
Issued, subscribed and fully paid up share capital	764.25	764.25

The Company's objective for capital management is to maximise shareholder value, safeguard business continuity and support the growth of the Company. The Company determines the capital requirement based on annual operating plans and longterm and other strategic investment plans. The funding requirements are met through equity, borrowings and operating cash flows generated. The Company is not subject to any externally imposed capital requirements.

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)
	As at March 31, 2022		As at March 31, 2021

	No of Shares	Amount ₹	No of Shares	Amount ₹
Number of shares at the beginning of the year	76.43	764.25	76.43	764.25
Less: Changes during the year	$\overline{\phantom{a}}$			$\overline{\phantom{a}}$
Number of shares at the end of the year	76.43	764.25	76.43	764.25

b) Terms / rights attached to equity shares

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

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

Notes forming part of financial statements

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

Name of the shareholder*	As at March 31, 2022		As at March 31, 2021
	No. in million	% Holdina	No. in million	% Holding
Dr. Anand Deshpande and Mrs. Sonali Anand Deshpande	22.97	30.06	22.96	30.04
Schemes of HDFC Mutual Fund	3.45	4.51	5.37	7.03

* 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.

e) Details of shares held by promoters

As at March 31, 2022

Promoter Name	No. of shares at the beginning of the year	Change during the year	the end of the year	No. of shares at % of Total Shares % change during	the year
Dr. Anand Suresh Deshpande	22.849.840	11.000	22.860.840	29.91%	0.01%
Mrs. Chitra Hemadri Buzruk	469,400	$\blacksquare$	469.400	0.61%
Dr. Mukund Suresh Deshpande	400.025	н.	400.025	0.52%
Mrs. Sonali Anand Deshpande	112.000		112.000	0.15%
Mrs. Sulabha Suresh Deshpande	46.000	(40.000)	6.000	0.01%	$(0.05)$ %
Mr. Arul Anand Deshpande	10.000		10.000	0.01%
Ms. Gavatri Hemadri Buzruk	10,000	$\blacksquare$	10.000	0.01%
Mr. Hemadri N Buzruk	7,820	$\blacksquare$	7.820	0.01%
Mr. Suresh Purushottam Deshpande	5.000		5.000	0.01%
Mr. Padmakar Govind Khare	880		880	$0.00\%$

As at March 31, 2021

Promoter Name	No. of shares at the beainning of the vear	Change during the vear	the end of the year	No. of shares at % of Total Shares % change during	the year
Dr. Anand Suresh Deshpande	22.848.840	1.000	22.849.840	29.90%	0.00%
Mrs. Chitra Hemadri Buzruk	469.400		469.400	0.61%
Dr. Mukund Suresh Deshpande	376.825	23.200	400.025	0.52%	0.03%
Mrs. Sonali Anand Deshpande	112.000		112.000	0.15%
Mrs. Sulabha Suresh Deshpande	66,000	(20.000)	46,000	0.06%	$(0.03)$ %
Mr. Arul Anand Deshpande	$\blacksquare$	10.000	10.000	0 0 1 %	0.01%
Ms. Gavatri Hemadri Buzruk	$\overline{\phantom{0}}$	10.000	10.000	0.01%	0.01%
Mr. Hemadri N Buzruk	7.820		7.820	0.01%
Mr. Suresh Purushottam Deshpande	5.000		5.000	0.01%
Mr. Padmakar Govind Khare	780	100	880	$0.00\%$	0.00%

	Office	CONTRACTOR 2019
	Buildings* Computers

	reehold	i

5.1 Property, plant and equipmer

									(In ₹ Million)
	Freehold land		Buildings* Computers	equipments Office	equipment Plant and	improvements Leasehold	Furniture and fixtures	Vehicles	Total

Gross block (at cost)
As at April 1, 2021	20692	2,38773	2,33129	5784	1,407 04	2079	527 32 61 66		6,946.17
Additions		1.35	95288 170	$\begin{array}{c} 3.95 \ 0.08 \end{array}$	72.38	i,		$724$ 0.03	1,092.25
(Refer Additions through business combination note 39)						$\ddot{\phantom{a}}$		J.	1.97
Disposals			11.96	3.87	90.21	$\blacksquare$	31.14	$\blacksquare$	137.18
As at March 31, 2022	206.92	2,389.08	3,273.91	58.00	1,389.40	2079	55784	$\frac{7}{27}$	7,903.21
Accumulated depreciation
As at April 1, 2021			1,732.90		1,215.65	20.19	49297		4,675.93
Charge for the year		1, 15749 96 38	435.14	5175 293	5470	0.60	39.25	$498$ 0 97	629.97
Disposals			1165	3.87	90.05	×	3073		13630
As at March 31, 2022		1,253.87	2,156.39	50.81	1,180.30	2079	50149	5.95	5,169.60
As at March 31, 2022 Net block	206.92	1,135.21	1,117.52	$\frac{1}{2}$	209.10		56.35	132	2,733.61
As at March 31, 2021	206.92	1,230.24	598.39	6.09	191.39	0.60	34.35	2.26	2,270.24
									(In ₹ Million)
	Freehold		Buildings* Computers	Office	Plant and	Leasehold	Furniture and	Vehicles	Total
	land			equipments	equipment	improvements	fixtures
Gross block (at cost) As at April 1, 2020	20692	2,387.06	1,851.34	53.58	37738	21.12		724	6,42595
Additions		0.67	536 13	6.28	5545		521 31 33 50		63203
Disposals			56 18	2.02	2579	0.33	2749		11181
As at March 31, 2021	206.92	2,38773	2,331.29	5784	1,407.04	2079	527.32	$\overline{724}$	6,946.7
Accumulated depreciation As at April 1, 2020		1,061.11	1,548.74	5093	1,190.54	1932	502.49	4.05	4,377 18
Charge for the year		9638	22833	284	5087		1786	0.93	398.33
Disposals			44.17	2.02	2576	$1 12$ 0 25	2738		99.58
As at March 31, 2021		1,15749	1,732.90	5175	1,215.65	2019	49297	4.98	4,67593
Net block
As at March 31, 2021	20692	1,230.24	598.39	6.09	191.39	0.60	34.35	2.26	2,27024
As at March 31, 2020	206.92	1,325.95	302.60	2.65	18684	1.80	18.82	3.19	2,04877

* Note: Building includes those constructed on leasehold land:
a) Gross block as on March 31, 2022 ₹ 1,455.94 million (Previous year ₹ 1,454.60 million)
b) Depreciation charge for the year ₹ 59.07 million (Previous year

5.2 Capital work in progress

ssalñoid in viones ze					(In ₹ Million)
				As at	As at
					March 31, 2022 March 31, 2021
					In ₹ Million In ₹ Million
Capital work in progress				1,07102	112.33
				1,07102	112.33

schedule Capital work in progress ageing
					(In ₹ Million)
			Amount in capital work in progress for a period of
	Less than 1 year	1-2 years	2-3 years	More than 3	Total
				years

Projects in progress	$\frac{1,07102}{2}$				$\frac{107102}{2}$
As at March 31, 2022	1,071 02				1,071.02

		Amount in capital work in progress for a period of
	-ess than 1 year	1-2 years	2-3 years	More than 3	Total
				years
rojects in progress	108.47	386			$\frac{112.33}{2}$
As at March 31, 2021	108.47	3.86			112.33

Notes forming part of financial statements

5.3 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		495.78
Disposals	130.68	$\blacksquare$	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	$\blacksquare$	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
As at March 31, 2021	278.30	36.32	314.62

			(In ₹ Million)
		Office premises Leasehold land	Total
Gross block (at cost)
As at April 1, 2020	358.91	37.50	396.41
Additions	176 95		176.95
Disposals	92.69	$\blacksquare$	92.69
As at March 31, 2021	443.17	37.50	480.67
Accumulated depreciation
As at April 1, 2020	126.41	0.60	127.01
Charge for the year	111 12	0.58	111.70
Disposals	72.66		72.66
As at March 31, 2021	164.87	1.18	166.05
Net block
As at March 31, 2021	278.30	36.32	314.62
As at March 31, 2020	232.50	36.90	269.40

5.4 Other Intangible assets

				(In ₹ Million)
	Software	Acquired contractual rights	Provisional Intangible Assets	Total
Gross block
As at April 1, 2021	925.11	261.74		1,186.85
Additions	61.99			61.99
Additions through business combination (Refer note 39)			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		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	$\blacksquare$	615.61	780.73
As at March 31, 2021	171.65			171.65

			(In ₹ Million)
	Software	Acquired contractual rights	Total
Gross block
As at April 1, 2020	743.67	261.74	1,005.41
Additions	181.44		181.44
As at March 31, 2021	925.11	261.74	1,186.85
Accumulated Amortization
As at April 1, 2020	696.70	261.74	958 44
Charge for the year	56.76	$\blacksquare$	56.76
As at March 31, 2021	753.46	261.74	1,015.20
Net block
As at March 31, 2021	171.65	$\blacksquare$	171.65
As at March 31, 2020	46.97	٠	46.97

5.5 Depreciation and amortization expense

		(In ₹ Million)
	For the year ended
		March 31, 2022 March 31, 2021
On Property, plant and equipment	629.97	398.33
On Right of use assets	127.79	111.70
On Other intangible assets	79.81	56.76
	837.57	566.79

Notes forming part of financial statements

Non-current financial assets : Investments

	As at March 31, 2022 In ₹ Million	As at March 31, 2021 In ₹ Million
Investments carried at cost
Unquoted investments
Investments in equity instruments - In wholly owned subsidiary companies (Refer note 34)
Persistent Systems, Inc.
482 million (Previous year: 402 million) shares of USD 0.10 each, fully paid up	3.048.26	2.478.01
Persistent Systems Pte Ltd.
0.50 million (Previous year: 0.50 million) shares of SGD 1 each, fully paid up	15.50	15.50
Persistent Systems France SAS
1.50 million (Previous year: 1.50 million) shares of EUR 1 each, fully paid up	97.47	97.47
Persistent Systems Malaysia Sdn. Bhd.
5.45 million (Previous year: 5.45 million) shares of MYR 1 each, fully paid up	102.25	102 25
Persistent Systems Germany GmbH
11.6527 million (Previous year: 11.6527 million) shares of EUR 1 each, fully paid up	1,265.91	1.265.91
CAPIOT Software Private Limited
0.1867 million (Previous year: 0.1867) shares of Rs. 10 each, fully paid up	483.71	376.61
-In associates
Klisma e-Services Private Limited [Holding Nil (Previous year: 50%)]#
Nil (Previous year : 0.005 million) shares of ₹ 10 each, fully paid up Less : Impairment		0.05
		(0.05)
Total investments carried at cost (A)	5,013.10	4,335.75
Investments carried at amortised cost
Quoted Investments
In bonds	2,801.81	2.557.92
[Market value ₹ 2,863.32 million (Previous year ₹2,727.32 million)] Add: Interest accrued on bonds	7748	72.88
Total investments carried at amortised cost (B)	2,879.29	2,630.80
Designated as fair value through profit and loss
Unquoted Investments
- Investments in mutual funds
Fair value of long term mutual funds (Refer Note 6 (a))	836.42 836 42	806 99 806 99
-Others*
Altizon Systems Private Limited
3,766 equity shares (Previous year : 3,766 equity shares) of ₹ 10 each, fully paid up	6.00 6.00	6.00 6.00

Total investments carried at fair value (C)	842.42	81299
Total investments $(A) + (B) + (C)$	8,734.81	7,779.54

Aggregate provision for diminution in value of investments Aggregate amount of quoted investments	2,879.29	0.05 2,630.80
Aggregate amount of unquoted investments	5.855.52	5.148.79

* 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

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

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

	As at	As at
	March 31, 2022	March 31, 2021
	In ₹ Million	In ₹ Million
Axis Mutual Fund	471.15	400,50
IDFC Mutual Fund	365 27	370.31
Sundaram Mutual Fund	$\blacksquare$	36.18
	836.42	806.99

7. Non-current financial assets : Loans

	As at	As at
	March 31, 2022	March 31, 2021
	In ₹ Million	In ₹ Million
Carried at amortised cost
Loan to related parties (Refer note 34)
Unsecured, considered good
- Persistent Systems Germany GmbH	420.67
Add: Interest accrued but not due on loan	1.01
	421.68
Other loans and advances
Unsecured, considered good
Loan to ESOP trust	3,522.00
	3,522.00	$\blacksquare$
Unsecured, credit impaired
Inter-corporate deposit	0.58	0.58
Less: Impairment	(0.58)	(0.58)
	٠	۰
	3.943.68

8. Other non-current financial assets

	As at March 31, 2022 In ₹ Million	As at March 31, 2021 In ₹ Million
Considered good
Carried at amortised cost
Deposits with Bank (refer note 14)*	3.19	24.42
Add: Interest accrued but not due on deposits with Bank (refer note 14)	0.17	1.34
Deposits with banks	3.36	25.76
Deposit with financial institutions	100.00
Add: Interest accrued but not due on deposit with financial institutions	0.41
Deposits with financial institutions	100.41	$\blacksquare$
Security deposits	122.91	52 23
Credit impaired
Deposit with financial institutions	430.00	430.00
Add: Interest accrued but not due on deposit with financial institutions	0.98	0.98
Less: Credit impaired	(430.98)	(430.98)
Deposits with financial institutions
	226.68	77.99

* Out of the balance, fixed deposits of ₹ 3.03 million (Previous year: ₹ 24.09 million) have been earmarked against credit facilities and bank guarantees availed by the Company.

9. Deferred tax assets (net)

	As at	As at
	March 31, 2022	March 31, 2021
	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	87.05	41.87
Capital gains (net)	51.11	61.06
Cash flow hedges	14.06	46.90
	152.22	149.83
Deferred tax assets
Provision for leave encashment	125.68	95.76
Provision for long service awards	67.97	64.97
Allowance for expected credit loss	21.19	28.85
Tax credit	56.61	62.37
Right of use asset and lease liability	30.21	26 36
Others	117.28	117 26
	418.94	395.57
Deferred tax assets (net)	266.72	245.74

Movement in deferred tax assets (net) during the year ended March 31, 2022

MOVEMENt in deferred tax assets (flet) during the year ended march 31, 2022				In ₹ Million
	As at April 1, 2021	Charge/ (Credit) Profit or loss	Credit/ (Charge) in in statement of other comrpehensive income	As at March 31, 2022
Deferred tax liabilities
Differences in book values and tax base values of block of Property, plant and equipment and other intangible assets	41.87	45.18		87.05
Capital gains (net)	61.06	(9.95)		51.11
Cash flow hedges	46,90		(32.84)	14.06
	149.83	35.23	(32.84)	152.22
Deferred tax assets
Provision for leave encashment	95.76	(29.92)		125 68
Provision for long service awards	64.97	(3.00)		67.97
Allowance for expected credit loss	28.85	7.66		21.19
Tax credit	62.37	5.76		56.61
Right of use asset and lease liability	26,36	(3.85)		30.21
Others	117.26	(0.02)	$\blacksquare$	117.28
	395 57	(23.37)	$\blacksquare$	418.94
	245 74	11.86	(32.84)	266 72

Movement in deferred tax assets (net) during the year ended March 31, 2021

				In ₹ Million
	As at April 1, 2020	Charge/ (Credit) Profit or loss	Credit/ (Charge) in in statement of other comrpehensive income	As at March 31, 2021
Deferred tax liabilities
Differences in book values and tax base values of block of Property, plant and equipment and other intangible assets	24.30	17.57		41.87
Capital gains (net)	76.67	(15.61)		61.06
Cash flow hedges			46.90	46.90
	100.97	1.96	46.90	149.83
Deferred tax assets
Provision for leave encashment	47.15	(48.61)		95.76
Provision for long service awards	51.38	(13.59)		64.97
Allowance for expected credit loss	33,45	4.60		28.85
Tax credit	67.69	5.32		62.37
Right of use asset and lease liability	31,86	5.50		26.36
Cash flow hedges	82.11		82.11
Others	104.68	(12.58)		117 26
	418.32	(59, 36)	82 11	395 57
	317 35	(57.40)	129.01	245 74

10. Other non current assets

	As at	As at
	March 31, 2022	March 31, 2021
	In ₹ Million	In ₹ Million
Capital advances (Unsecured, considered good)	136.52	38.75
Prepayments	124.91	84.43
Balances with government authorities (refer note 36)	296.55	296 55
	557.98	419.73

11. Current financial assets : Investments

	As at	As at
	March 31, 2022	March 31, 2021
	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 'a' below)	4,346.91	6,374 95
Total carrying amount of investments	4.346.91	6,374.95
		ype text here
Aggregate amount of quoted investments
Aggregate amount of unquoted investments	4 3 4 6 9 1	6.374.95

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

	As at	As at
	March 31, 2022	March 31, 2021
	In ₹ Million	In ₹ Million
Aditya Birla Sun Life Mutual Fund	883.65	1.011.03
Axis Mutual Fund	672.70	824 68
Kotak Mutual Fund	521.63	478 21
Nippon India Mutual Fund (formerly known as Reliance Mutual Fund)	472.88
IDFC Mutual Fund	457.54	911.72
DSP Mutual Fund	443.20	37.38
ICICI Prudential Mutual Fund	399.94	710.33
UTI Mutual Fund	337.68	723 19
SBI Mutual Fund	120.01	166 36
Sundaram mutual fund	37.68
HDFC Mutual Fund		963 10
L&T Mutual Fund		51171
PGIM India Mutual Fund (formerly known as DHFL Pramerica Mutual Fund)		37.24
	4,346.91	6,374.95

Notes forming part of financial statements Persistent Systems Limited
12. Trade receivables
						As at	As at
						March 31, 2022	March 31, 2021
						In ₹ Million	In ₹ Million
Unsecured, considered good*						4,42684	2,966.26
Unsecured, credit impaired						84.21	118.29
						4,511 05	3,084.55
Less : Allowance for expected credit loss						(84 21)	(118.29)
						4,42684	2,966.26

						4,426.84	2,966.26
*Includes dues from related parties (refer note 34)
Trade receivables Ageing Schedule							In ₹ Million
	Curent but not		Outstanding for following periods from due date of payment				Total
	due	Less than 6	$6$ months $-1$	1-2 years	23 years	More than 3 years
		Months	vear
Undisputed Trade Receivables - considered good	3,06474	1,258.20	40.27	51.06	597	660	4,42684
Undisputed Trade receivable - credit impaired		28.16	587	6.60	11.14	32.44	84.21
As At March 31, 2022	3,064.74 II	1,286.36	46.14	57 66	1711	39.04	4,511.05

	Curent but not		Outstanding for following periods from due date of payment				Total
	due	Less than 6	$6$ months $-1$	12 years	23 years	More than 3 years
		Months	year
Undisputed Trade Receivables - considered good	2,35635	238.68	12725	19674	40.27	697	2,966.26
Undisputed Trade receivable - credit impaired		2430	11.62	38.83	2079	2275	118.29
As At March 31, 2021	2,356.35	262.98	138.87	235.57	61.06	29.72	3,084.55

Notes forming part of financial statements

13. Cash and cash equivalents

	As at	As at
	March 31, 2022	March 31, 2021
	In ₹ Million	In ₹ Million
Cash and cash equivalents as presented in cash flow statement
Cash on hand	0.09	0.10
Balances with banks
On current accounts#	302.74	360.22
On saving accounts	1.64	1.33
On Exchange Earner's Foreign Currency accounts	259.20	208.57
On Deposit accounts with original maturity less than three months	$\blacksquare$	292.50
	563 67	862.72

Of the cash and cash equivalent balance as at March 31, 2022, the Company can utilise ₹ 35,75 million (Previous year: ₹ 154,39 million) only
towards certain predefined activities specified in the agreement.

14. Bank balances other than cash and cash equivalents

	As at	As at
	March 31, 2022	March 31, 2021
	In ₹ Million	In ₹ Million
Deposits with banks*	5.858.66	7.108.47
Add: Interest accrued but not due on deposits with banks	179.78	301.29
Deposits with banks (carried at amortised cost)	6.038.44	7.409.76
Less: Deposit with maturity more than twelve months from the Balance Sheet date disclosed under non-current financial assets (refer note 8)	(3.19)	(24.42)
Less: Interest accrued but not due on non-current deposits with banks (refer note 8)	(0.17)	(1.34)
	6.035.08	7,384.00
Balances with banks on unpaid dividend accounts**	2.94	3.00
	6,038.02	7,387.00

* Out of the balance, fixed deposits of ₹ 644.36 million (Previous year : ₹ 651.80 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.

15 Current financial assets : Loans

	As at	As at
	March 31, 2022	March 31, 2021
	In ₹ Million	In ₹ Million
Carried at amortised cost
Loan to related parties (Refer note 34)
Unsecured, credit impaired
- Klisma e-Services Private Limited	$\blacksquare$	27.43
	$\blacksquare$	27.43
Less: Write off / impairment		(27.43)

Persistent Systems Limited
Notes forming part of financial statements
16. Other current financial assets

	As at	As at
	March 31, 2022	March 31, 2021
	In ₹ Million	In ₹ Million
Derivative instruments at fair value through OCI Cash flow hedges
Foreign exchange forward contracts	84.59	294.46

Carried at amortised cost
Advances to related parties (Unsecured, considered good) (refer note 34)
Persistent Systems, Inc.	69.15	1872
Persistent Systems France SAS	5.49	0.38
Persistent Telecom Solutions Inc.	0.13	0.01
Persistent Systems Malaysia Sdn. Bhd.	0.07	$\sim$
Persistent Systems Lanka (Private) Limited	0.72	0.02
Aepona Limited	1.16	2.34
PARX Consulting GmbH	0.06
Software Corporation LLC.	0.25
Youperience Limited	0.04
Persistent Systems Mexico, S.A. de C.V.	10.01
Youperience GmbH	0.04
Persistent Systems Pte. Ltd.	0.29
Aepona Group Limited Persistent Systems Germany GmbH	0.08 1.48
PARX Werk AG	1.88
Persistent Systems Israel Ltd.	0.14
	90.99	21,47

Advances to related parties (Unsecured, credit impaired) (refer note 34)
Klisma e-Services Private Limited	Ē.	0.81
Less: Impairment of current financial assets	$\blacksquare$	(0.81)
	ä,
Other advances (Unsecured, considered good)		21.79
Unbilled revenue	3.533.05	1.726.07
Security deposits	0.10	49 33
	3,708.73	2,113.12

17. Other current assets
	$A = 24$	$A = 2†$

	As at	As at
	March 31, 2022	March 31, 2021
	In ₹ Million	In ₹ Million
Advances to suppliers (Unsecured, considered good)
Advances recoverable in cash or kind or for value to be received	277.27	136.47
Prepayments	498.68	251.85
Excess fund balance with Life Insurance Corporation (Refer Note 30)	42.19	113.08
Other advances (Unsecured, considered good)
VAT receivable (net)	19.67	23.44
Service tax and GST receivable (net) (refer note 36)	533.45	1.132.09
	553.12	1,155.53
	1.371.26	1.656.93

18. Non-current financial liabilities : Borrowings

	As at	As at
	March 31, 2022	March 31, 2021
	In ₹ Million	In ₹ Million
Unsecured Borrowings carried at amortised cost
Term loans
Indian rupee loan from others	5.55	7.39
Interest accrued but not due on term loans	0.08	0.11
	5.63	7.50
Less: Current maturity of long-term borrowings	(1.85)	(1.85)
Less: Current maturity of interest accrued but not due on term loan	(0.08)	(0.11)
	(1.93)	(1.96)
	3.70	5.54

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

Loan amounting to ₹ 5,55 million (Previous year ₹ 7,39 million) with Interest payable @ 3% per annum repayable in
ten equal annual installments over a period of ten years commencing from October 2015.

19. Lease liabilities

As at As at
March 31, 2022 March 31, 2021
In ₹ Million In ₹ Million
Lease liabilities 758.26 378.54
Less: Current portion of lease liabilities (146.51) (73.82)
304.72 611.75

		For the year ended
	March 31, 2022	March 31, 2021
	In $\bar{\tau}$ Million	In ₹ Million
Opening balance	378 54	356.64
Additions	495.78	176.95
Deletions	(10.98)	(20.03)
Add: Interest recognised during the year	68.59	38.09
Less: Payments made	(173.67)	(173.11)
Closing balance	758.26	378.54

20. Non current liabilities : Provisions

	As at	As at
	March 31, 2022	March 31, 2021
	In ₹ Million	In ₹ Million
Provision for employee benefits
- Long service awards	245 54	240.94
	245 54	240 94

21. Trade payables

	As at	As at
	March 31, 2022 March 31, 2021
	In ₹ Million	In ₹ Million
Trade payables for goods and services*
-Dues of micro enterprises and small enterprises	10.30	30.20
-Dues of creditors other than micro enterprises and small enterprises	844.68	908.20
	854.98	938.40
*Includes dues payable to related parties (refer note 34)

Trade payables Ageing Schedule

	Not Due Outstanding for following periods from due date of payment					Total
		Less than 1 year	1 2 vears	2-3 vears	More than 3
					vears
Total outstanding dues of micro enterprises and small enterprises	10 30	-	-	-		10.30
Total outstanding dues of creditors other than micro enterprises and small enterprises	567.29	193.01	14 51	32 61	37 26	844.68
As At March 31, 2022	577.59	193.01	14.51	32.61	37.26	854.98

	Not Due Outstanding for following periods from due date of payment				Total
		Less than 1 year	1-2 vears	2-3 vears	More than 3
					vears
Total outstanding dues of micro enterprises and small enterprises	30.20	$\overline{\phantom{a}}$	$\sim$	$\overline{\phantom{a}}$		30.20
Total outstanding dues of creditors other than micro enterprises and small enterprises	342.17	513.44	17.51	7.51	27.57	908.20
As At March 31, 2021	372.37	513.44	17.51	7.51	27.57	938.40

22 Other current financial liabilities

	As at	As at
	March 31, 2022	March 31, 2021
	In ₹ Million	In ₹ Million
Capital creditors	204.49	237.83
Accrued employee liabilities	119 21	154.58
Unpaid dividend *	2.94	3.00
Other liabilities	841	0.05
Pavable to selling shareholders	31.83	$\blacksquare$
	366.88	395.46
* Unpaid dividend is credited to Investor Education and Protection Fund as and when due

23. Other current liabilities

	As at	As at
	March 31, 2022	March 31, 2021
	In ₹ Million	In ₹ Million
Unearned revenue	258 31	260.40
Advance from customers	786.98	1.023.53
Other payables
- Statutory liabilities	413.55	228.03
- Other liabilities*	50.20	167.05
	1,509.04	1,679 01

*Includes balance of ₹ 35.64 million (previous year: ₹ 154.16 million) to be utilised against certain predefined activities specified in the agreement

Current liabilities : Provisions

	As at	As at
	March 31, 2022	March 31, 2021
	In ₹ Million	In ₹ Million
Provision for employee benefits
- Leave encashment	499.37	380.49
- Long service awards	24.54	17.19
- Other employee benefits	1.74582	747.91
	2 2 6 9 7 3	1,145.59

Notes forming part of financial statements

Revenue from operations (net)

		For the year ended
	March 31, 2022	March 31, 2021
	In ₹ Million	In ₹ Million
Software services	35,406.71	24.270.63
Software licenses	348.09	525.45
	35,754.80	24,796.08

The table below presents disaggregated revenues from contracts with customers by segments, geography and type. The Company believes that this disaggregation best depicts how the nature, amount, timing and uncertainty of our revenues and cash flows are affected by industry, market and other economic factors.

	For the year ended
	March 31, 2022	March 31, 2021
	In ₹ Million	In ₹ Million
Revenue by industry segments
Banking, Financial Services and Insurance (BFSI)	6.679.72	4.070.00
Healthcare & Life Sciences	4,977 71	3,525.00
Technology Companies and Emerging Verticals	24,097.37	17,201.08
Total	35,754.80	24,796.08
Geographical disclosure
India	6,030.59	3,392.01
North America	26,349.69	19,844,83
Rest of the World	3.374 52	1,559.24
Total	35,754.80	24,796.08
Onsite / offshore / IP Led
IP Led	1.234.78	1,447.06
Offshore	33,518.96	22,597 95
Onsite	1.001.06	751.07
Total	35,754.80	24.796.08

During the year, ₹1,726,07 million (Previous year ₹1,856.43 million) of opening unbilled revenue (contract asset) has been reclassified to trade receivables upon billing to customers on completion of milestones. In addition to that, Nil (Previous year ₹
113.49 million) has been reversed in to revenue from operations in current year.

During the year, the Company recognised revenue of ₹ 242.33 million (Previous year ₹ 105.56 million ) arising from opening
unearned revenue (contract liability).

In respect of the contracts wherein the transaction price is in the form of revenue share, the estimated revenue for the customer is
considered based on the historical trends and management judgement with respect to custom from these contracts included in the total revenue for the year is ₹ 211.87 million (Previous year ₹ 209.30 million).

Other income

		For the year ended
	March 31, 2022	March 31, 2021
	In ₹ Million	In $\bar{\tau}$ Million
Interest income
On deposits carried at amortised cost	311.08	381.66
On Others	282 50	167.16
Dividend income from investments*	53 16	131.45
Other non-operating income
Foreign exchange gain (net)	208.93	67 12
Profit on sale of Property, plant and equipment (net)	12.31	8.10
Net profit on sale/ fair valuation of financial assets designated as FVTPL	338.78	344.43
Excess provision in respect of earlier years written back	15.53
Miscellaneous income	102.28	76.24
	1.324.57	1.176.16

*includes dividend received from investment in wholly owned subsidiaries. (Refer note 34)

27. Personnel expenses

	For the year ended
	March 31, 2022	March 31, 2021
	In ₹ Million	In ₹ Million
27.1 Employee benefits expense
Salaries, wages and bonus	19.766.82	12.806.57
Contribution to provident and other funds (refer note 30)	1.016 64	666.24
Staff welfare and benefits	359.74	384.07
Share based payments to employees (refer note 35)	739.52	236 33
	21,882.72	14.093.21
27.2 Cost of professionals
- Related parties (refer note 34)	649.60	1.323.73
- Others	812.31	451.34
	1.461.91	1.775.07
	23.344.63	15.868.28

Other expenses*

		For the year ended
	March 31, 2022	March 31, 2021
	In ₹ Million	In ₹ Million
Travelling and conveyance	151.53	39.58
Electricity expenses (net)	63.74	69.09
nternet link expenses	46.09	50.14
Communication expenses	60.91	73.17
Recruitment expenses	348.05	75.40
Training and seminars	99.17	23.97
Purchase of software licenses and support expenses	1.066.00	908.00
Bad debts	12.12	46.96
Reversal of allowance for expected credit loss (net)	(29.97)	(20.20)
Rent (refer note 33)	73.22	77.50
Insurance	36.29	31.37
Rates and taxes	51 14	52.57
Legal and professional fees	238.09	196.13
Repairs and maintenance
- Plant and Machinery	120.72	94.92
- Buildings	19.85	19.26
- Others	20.43	15.20
Selling and marketing expenses (refer note 34(ii))	1.028.63	739.82
Advertisement, conference and sponsorship fees	4.23	3.54
Computer consumables	5.39	3.14
Auditors' remuneration (refer note 41)	8.92	9,00
Corporate social responsibility expenditure (refer note 38)	115.53	163.93
Books, memberships, subscriptions	15.76	12.69
Directors' sitting fees	743	4 8 4
Directors' commission	20.83	10.22
Loss on receivables and investment in associate	28.29
Reversal of provision for receivables and investment in associate	(28.29)
Miscellaneous expenses	123.68	118.52
	3,707.78	2,818.76
* Includes expenses incurred with related parties (refer note 34)

29. Earnings per share

		For the year ended
		March 31, 2022	March 31, 2021
Numerator for Basic and Diluted EPS
Net Profit after tax (In ₹ Million)	(A)	6,858.66	5.050 86
Denominator for Basic EPS
Weighted average number of equity shares	(B)	76,425,000	76,425,000
Denominator for Diluted EPS
Number of equity shares	(C)	76.425.000	76.425.000
Basic Earnings per share of face value of ₹ 10 each (In ₹)	(A/B)	89.74	66.09
Diluted Earnings per share of face value of ₹ 10 each (In ₹)	(A/C)	89.74	66.09

	For the year ended
	March 31, 2022	March 31, 2021
Number of shares considered as basic weighted average shares outstanding	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

Notes forming part of financial statements

30. Gratuity plan:

The Company has a defined benefit gratuity plan. Each employee is eligible for gratuity on completion of minimum five years of service at 15
days basic salary (last drawn basic salary) for each completed year of service. T form of a qualifying insurance policy.

The following tables summarize the components of net benefit expense recognized in the statement of profit and loss and the funded status
and amounts recognized in the Balance Sheet for the respective plans.

Statement of profit and loss

Net employee benefit expense (recognized in statement of profit and loss)

		(In ₹ Million)
	For the year ended
	March 31,	March 31.
	2022	2021
Current service cost	152.60	167.38
Interest cost on benefit obligation	61.61	56.48
Expected return on plan assets	(74.30)	(70.85)
Others		(0.02)
Net benefit expense	139 91	152 99
Net actuarial loss/ (gain) recognized in the year	240.70	(32.79)
Due to Demographic assumptions	166.40	$\blacksquare$
Due to Financial assumptions	(45.27)	8.98
Due to Experience assumptions	119.57	(41.77)

Balance sheet

Changes in the fair value of plan assets (recognized in the Balance Sheet) are as follows:

		(In ₹ Million)
	For the year ended
	March 31.	March 31.
	2022	2021
Opening fair value of plan assets	1.050.79	985 61
Expected return on plan assets	74.30	70.85
Adjustment to expected return	(14.29)	(10.85)
Contribution by employer	324.01	116.03
Benefits paid	(208.81)	(110.85)
Closing fair value of plan assets	1.226.00	1,050.79

Changes in the present value of the defined benefit obligation (recognized in Balance Sheet) are as follows:

		(In ₹ Million)
		For the year ended
	March 31.	March 31.
	2022	2021
Opening defined benefit obligation	937.71	857.07
Interest cost	61.61	56.48
Current service cost	152.60	167.38
Benefits paid	(208.81)	(110.85)
Actuarial (gain) / losses on obligation	240.70	(32.37)
Closing defined benefit obligation	1,183.81	937.71

Benefit asset/ (liability)

		$(In ₹$ Million)
	As at
	March 31,	March 31,
	2022	2021
Fair value of plan assets	1.226.00	1.050.79
(Less): Defined benefit obligations	(1.183.81)	(937.71)
Plan asset / (liability)	42.19	113.08

The major categories of plan assets as a percentage of the fair value of total plan assets:

	As at
	March 31,	March 31
	2022	2021
Investments with insurer including accrued interest	100%	100%

Notes forming part of financial statements

The principal assumptions used in determining gratuity for the Company's plans are shown below:

		As at
	March 31,	March 31,
	2022	2021
Discount rate	7.07%	6.70%
Mortality		ALM (2012-14) UIt. IALM (2012-14) UIt.

Attrition rate	IPS: 0 to 1 : 17%	PS: 0 to 1 : 17%
	IPS: 1 to 3 : 15%	PS: 1 to 3 : 14%
	IPS: 3 to 4 : 10%	PS: 3 to 4 : 10%
	IPS: 4 to 5 : 5%	PS: 4 to 7 : 5%
	IPS: 5 to 7 : 6%	PS: 7 to 10 : 3%
	IPS: 7 to 10 : 4%	PS:10 to 47:1%
	PS:10 to 50 : 2%
Increment rate	6.00%	5.50%

The significant actuarial assumptions for the determination of the defined benefit obligations are discount rate and increase in compensation levels. The sensitivity analysis below have been determined based on reasonably possible changes of the respective assumptions occurring
at the end of the reporting period, while holding all other assumptions constant.

Every percentage point increase / decrease in discount rate will change the gratuity benefit obligation to approximately ₹1,076.57 million / ₹ 1,309.28 million (previous year: ₹ 820.0 million / ₹ 1,080.10 million) respectively.

Every percentage point increase / decrease in rate of increase in compensation levels will change the gratuity benefit obligation to approximately ₹ 1,240.68 million / ₹ 1,103.98 million (previous year: ₹ 996.40 million / ₹ 887.40 million) respectively.

Amounts for the current and previous year are as follows:

As at March 31, March 31. 2021 2022
	$(In ₹$ Million)



Plan assets 1.226.00	1.050.79
Defined benefit obligation (1, 183.81)	(937.71)
Surplus 42.19	113.08
Experience adjustments on plan liabilities - loss/ (gain) 240.70	(32.37)

Maturity Profile of defined benefit obligations:

		(In ₹ Million)
	As at
	March 31.	March 31.
	2022	2021
Within 1 year	75.81	36.45
1-2 years	77.63	32.91
2-3 years	82.24	33.66
34 years	84 11	36.11
4-5 years	85.27	36.29
5-10 years	473.56	222.48

Superannuation Fund

The Company contributed ₹ 57.63 million and ₹ 43.55 million to superannuation fund during the years ended March 31, 2022 and March 31, 2022 and March 31, 2022 and March 31, 2022 and March 31,

Defined contribution plan - Provident Fund

The Company has certain defined contribution plans. Contributions are made to provident fund for employees @ 12% of Basic salary as per regulation. The contributions are made to registered provident fund administered by the government. The obligation of the company is
Iimited to the amount contributed and it has no further contractual nor any constructive towards defined contribution plan (provident fund) is ₹ 827.57 million (Previous year - ₹ 484.36 million).

Notes forming part of financial statements

31. Income taxes

The reconciliation of estimated income tax expense at Indian statutory income tax rate to income tax
expense reported in statement of profit and loss is as follows:

	For the year ended
	March 31, 2022	March 31, 2021
	In $\bar{\tau}$ million	In $\bar{\tau}$ million
Profit before tax	9.120.61	6.680.20
Enacted tax rate in India	25.17%	25.17%
Computed tax expense at enacted tax rate	2.295 48	1.681.27
Effect of exempt income	(59.18)	(90.04)
Effect of non-deductible expenses	32 97	30.01
Effect of concessions (R&D allowance)	5.76	5.32
Tax charge in respect of earlier years	13.48	2,74
Effect of different tax rates for different heads of income	(5.69)	(2.06)
Others	(20.87)	2.10
Income tax expense	2.261 95	1.629.34

32 Financial assets and liabilities

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

Financial assets/ Financial liabilities			March 31, 2022				March 31, 2021		Fair value
	FVTPL	FYTOCI	Amortised Cost	Cost	FVTP.	FVTOCI	Amortised Cost	Cost	hierarchy*
Financial Assets:
nvestments in subsidiaries and associates				5,013.10				4,33575
nvestments in equity instruments	6.00				6.00				evel 3
Investments in bonds			2,879.29				2,630.80
Investments in mutual funds	5,183.33				7,181.94				Level1
Loans			3,943.68				$\ddot{\phantom{0}}$
Deposit with banks and financial institutions (including interest			6,13885				7,409.76
accrued but not due on deposits with banks)
Cash and cash equivalents (including unpaid dividend)			566.61				86572
Trade receivables (net)			,426.84				2,966.26
Forward contracts receivable		8459				294.46	ľ		$-$ evel $2$
Unbilled revenue			3,533.05				,726.07
Other non current financial assets			12291				52.23
Other current financial assets			9109				9259
Total Financial Assets	5,18933	8459	21,702 32	5,013.10	7,18794	294 46	15,743 43	4,33575
Financial Liabilities:
Borrowings (including accrued interest)			563				750
Trade payables			854 98
Lease liabilities			758 26				938 40 378 54
Other financial liabilities (excluding borrowings)			366.88				395 46
Total Financial Liabilities			98575				1,719.90

*Fair value hierarchy:

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

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

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

Notes forming part of financial statements

Financial risk management

Financial risk factors and risk management objectives

The Company's activities expose it to a variety of financial risks: market risk, credit isk and lauidity risk. The Company's focus is to foresee the unpredictability of financial markets and seek to minimize potential adve mitigate risk exposures

Market risk

The Company operates globally with its operations spead across various geographies and consequently the Company is exposed to foreign exchange risk. Around 70% to 90% of the Company's foreign currency exposure is in USD. T

The following table analyses unhedged foreign currency risk from financial instruments as of March 31, 2022.

					In ₹ million)
	ິ	EUR	မ္မီ	Other currencies	Total
Trade receivables	84203		27542	51512	1,69735
balances Cash and cash equivalents and ban	316.09	64 78 17 83	3582	35 93 126 25	40567
nvestments	3,653.08	,106.31
Other financial assets (including loans and interest accrued)	93.22	429.06	3.98	7.10	1,885.64 533.36
Trade and other payables	3752	11.20	2078	765	87 15 781 19
Other liabilities	78199
ged foreign currency risk from financial instruments as of March 31, 2021. The following table analyses unhedg
					In $\bar{\epsilon}$ million)

					֧֚֝֝֝֬֝֬֝֝֬֝֬֝֬֝֝֬֝֬֝֬֝֬֝֬֝֬֝֬֝֬֝֟֝֬֝֬֝֬֝֬
	ຮິ	g	န္မ	Other currencies
rade receivables	$131.51$ $314.92$	112.91	268.36 1305	8752	$\begin{array}{r} \underline{\text{Total}} \[-2.0ex] \underline{\text{500.30}} \[-2.0ex] \underline{\text{349.31}} \[-2.0ex] \underline{\text{4452.34}} \[-2.0ex] \underline{\text{4523.24}} \[-2.0ex] \underline{\text{754}} \[-2.0ex] \underline{\text{754}} \[-2.0ex] \underline{\text{754}} \[-2.0ex] \underline{\text{754}} \[-2.0ex] \underline{\text{754}} \[-2.0ex] \underline{\text{874}} \[-2.0ex] \underline{\text{754}} \[-2.0ex] \underline{\text{754}}$
bank Cash and cash equivalents and		6.02
nvestments	93902	46083
bans and interest accrued Other financial assets (including		0.26	758	$1539$ $12338$
Trade and other payables	234 12 324 19	14 0 0 57	44 12	2 37 2 82
Other liabilities			0.58

Foreign currency sensitivity analysis

For the year ended March 31, 2021 and March 11, 2021 every percentage point depreciation / appreciation in the exchange rate between the Indian rupee and foreign currencies on foreign currency exposure would affect the Com

Derivative financial instruments

The Company holds derivative foreign currency forward contracts to mingate the risk of change rates on foreign currency exposures. These derivative financial instruments are valued based on quoted prices for similar
highly

The following table gives details in respect of outstanding foreign currency forward contracts:

		As at March 31, 2022
	oreign currency Average rate million)		$\overline{m}$ illion)	Foreign currency Average rate million)	llllon)
Jerivatives designated as cash flow hedges
Forward contrac
J	75.00	7774	3,605 02	13500	77 11 10,410 34

		As at March 31, 2022			As at March 31, 2021
	oreign currency (million)	Average rate	$\bar{\epsilon}$ (million)	Foreign currency Average rate (million)		₹ (million)
lot later than 3 months	41,00	77.00	3,156.91	31.00	7848	2,43298
ater than 3 months and not later than 6 months	45,00	77.17	3,4727	3450	77 08	2,6591
ater than 6 months and not later than 9 months	45.00	7823	3,520.48	34.50	76.63	2,643.64
ater than 9 months and not later than 12 months	44.00	78.52	3,454.92	35.00	76.42	2,674.61
Tota	17500		3,60502	135.00		10,410.34

Notes forming part of financial statements

Credit risk

Credit risk refers to the risk of default on its collgation by the counterparty resulting in a financial loss. The maximum exposure to the credit risk at the reporting date is primarly from trade receivables amounting to

Credit risk is perceived mainly in case of receivables overdue for more than 90 days. The following table gives details of risk concentration in respect of percentage of receivables overdue for more than 90 days:

		AS at
		March 31, 2022 March 31, 2021
Receivables overdue for more than 90 days (₹ million)*	25182	215.02
Total receivables (gross) (₹ million)	4.511.05	1,084.55
Overdue for more than 90 days as a % of total receivables	5.6%	7.0%

* Out of this amount, ₹ 84.21 million (March 31, 2021: ₹ 118.29 million) have been provided for.

Ageing of trade receivables

		As at
	March 31, 2022	March 31, 2021
Within the credit period	3,064.74	2,35635
1 to 30 days past due	806.90	21040
31 to 60 days past due	236.10	219.92
61 to 90 days past due	151.49	82.86
91 to 120 days past due	5216	36.02
121 and above past due	199.66	179.00
Less: Expected credit loss	(84.21)	118.29)
Net trade receivables	4,42684	2,96626

Movement in expected credit loss allowance

		(In ₹ million)
		As at
		March 31, 2022 March 31, 2021
Jpening balance	118.29	13291
Movement in expected credit loss allowance	(29.97)	(20, 20)
Translation differences	(4.11)	558
Closing balance	34.21	11829

Credit risk on cash and cash equivalents is limited as the Company generally invests in deposits with banks and finantial restings, investment primarly include investment in debts mutual funds, quoted bonds.

j		ĺ	otes forming part of financial statements
---	--	---	-------------------------------------------

Liquidity risk

The Company's principal sources of liquidity are cash and cash equivalents and the is generated from operations. The Company has no outstanding bank borrowings. The investment of surplus funds is governed by the
Company's

The table below provides details regarding the contractual maturities of significant financial liabilities:

				In ₹ million)
		As at
		March 31, 2022		March 31, 2021
	Less than 1 year	. I year lore than	Less than 1 year	More than 1 year
ng accrued interest) uncluall Borrowings	1.93	370	1.96	554
Trade payables and deferred	854.98		938.40
Lease liabilities	146.51	61175	7382	30472
borrowings) Other financial liabilities (exclu	366.88		39546

32. (b) Derivative instruments and un-hedged foreign currency exposures

(i) Forward contracts outstanding at the end of the year:

		$(ln ₹$ Million)
	As at	As at
	March 31, 2022 March 31, 2021
Forward contracts to sell USD: Hedging of expected receivables of USD 175 Million (Previous year USD	13.605.02	10.410.34
135 Million)

(ii) Details of un-hedged foreign currency exposures at the end of the year:

Conversion rate (₹)		March 31, 2021
	In₹ million	Foreign currency (In million)	Conversion rate (₹)
0.62	1.33	JPY 2.01	0.66
75.79	314 92	USD 4.31	73.11
99.43	13.05	GBP 0.13	100.69
60.52	8.81	CAD 0.15	58.02
84 13	6.02	EUR 0.07	85.78
56 72	2.41	AUD 0.04	55.67
5.22	2.77	ZAR 0.56	4 9 4
75.79	2,939 02	USD 40.20	73.11
55.98	27.20	SGD 0.50	54.40
84 13	1,128.01	EUR 13.15	85.78
18.03	96.19	MYR 5.45	17.65
55.98	0.10	SGD 0.002	54.40
75.79	234 12	USD 3.2	73 11
99.43	44.12	GBP 0.44	100.69
60.52	0.81	CAD 0.01	58.02
84 13	14.01	EUR 0.16	85.78
56.72	0.03	AUD 0.001	55.67
	0.85	CHF 0.01	77.46
5.22	0.15	ZAR 0.03	4.94
0.62 18.03	0.43	JPY 0.65	0.66
75.79	0.29	USD 0.004	73.11
99.43	7.58	GBP 0.08	100.69
84 13	0.26	EUR 0.01	85.78
	0.01	MXN 0.002	3.56
18.03	0.16	MYR 0.01	17.65
60.52	1.46	CAD 0.03	58.02
0.62	0.04	JPY 0.07	0.66
23.90	0.71	LS 0.03	21.89
81 93	÷,		÷,
56.72	3.97	AUD 0.07	55.67
0.26	3.04	LKR 8.3	0.37
55.98
L.	282	SGD 0.05	54.40
75.79	324 19	USD 4.43	73 11
ä,	0.58	GBP 0.01	100.69
	0.57	EUR 0.01	85.78
75.79	131.51	USD 1.79	73.11
84 13	112.91	EUR 1.32	85.78
99.43	268.36	GBP 2.67	100.69
			55.67
			54.40
			4.94
			58.02 77.46

	56 72 55.98 5.22 84.13	53.35 2.71 29 74 0.21 1.51 $\bar{z}$	AUD 0.96 SGD 0.05 ZAR 6.02 CAD 0.004 CHF 0.02 $\overline{a}$

Notes forming part of financial statements

33 Leases

The table below provides details regarding the contractual maturities of lease liabilities on an undiscounted basis:

	As at	As at
	March 31, 2022	March 31, 2021
	In ₹ Million	In ₹ Million
- Less than one year	212.09	108.09
- One to five years	71284	358.48
- More than five years	$\sim$	1737

The company does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet the obligations related to lease liabilities as and when they fall due.

Rental expense recorded for short-term leases was ₹ 73.22 million for the year ended March 31,2022 (Previous year ₹77.50 million).

The company has adopted Ind AS 116, Leases; and has recognized notional interest on lease liability of ₹ 68.59 million under finance costs for year ended
March 31, 2022 (Previous year ₹ 38.09 Million).

The aggregate depreciation on ROU assets has been included under depreciation and amortisation expense in the Statement of Profit and Loss. (Refer
note 5.6)

Notes forming part of financial statements

34. Related party disclosures

(i) Names of related parties and related party relationship

Subsidiaries	i. Persistent Systems, Inc., USA (Wholly owned subsidiary)
(Refer note 3 of consolidated financial statement for list of subsidiaries and ownership %)	Persistent Systems Pte Ltd., Singapore ii. (Wholly owned subsidiary)
	Persistent Systems France SAS, France iii. (Wholly owned subsidiary)
	iv Persistent Systems Malaysia Sdn. Bhd., Malaysia (Wholly owned subsidiary)
	Persistent Systems Germany GmbH, Germany v. (Wholly owned subsidiary)
	vi. CAPIOT Software Private Limited, India (Wholly owned subsidiary)
	vii Persistent Telecom Solutions Inc., USA (Wholly owned subsidiary of Persistent Systems, Inc.) viii. CAPIOT Software Inc., USA
	(Wholly owned subsidiary of Persistent Systems, Inc.)
	ix. CAPIOT Software Pty Limited, Australia (Wholly owned subsidiary of CAPIOT Software Inc.)
	x. CAPIOT Software Pte Limited, Singapore
	(Wholly owned subsidiary of CAPIOT Software Inc.)
	xi. Persistent Systems S.R.L., Italy
	(Wholly owned subsidiary of Persistent Systems, Inc.)
	xii Aepona Group Limited, Ireland (Wholly owned subsidiary of Persistent Systems, Inc.)
	xiii Aepona Limited, UK
	(Wholly owned subsidiary of Aepona Group Limited)
	xiv Valista Limited
	(Wholly owned subsidiary of Aepona Group Limited) (Dissolved with effect from June 24, 2020)
	xv. Persistent Systems Lanka (Private) Limited (Formeny known as Aepona Software (Private) Limited), Sri Lanka
	(Wholly owned subsidiary of Aepona Group Limited)
	xvi. Persistent Systems Mexico, S A de C V, Mexico
	(Wholly owned subsidiary of Persistent Systems Inc.) xvii Persistent Systems Israel Ltd., Israel
	(Wholly owned subsidiary of Persistent Systems Inc.)
	xviii. PARX Werk AG, Switzerland
	(Wholly owned subsidiary of Persistent Systems Germany GmbH)
	xix, PARX Consulting GmbH, Germany
	(Wholly owned subsidiary of PARX Werk AG) xx. Youperience GmbH, Germany
	(Wholly owned subsidiary of Persistent Systems Germany GmbH)
	xxi Youperience Limited, UK
	(Wholly owned subsidiary of Youperience GmbH)
	xxii. Software Corporation International LLC, USA (Wholly owned subsidiary of Persistent Systems Inc.)
	xxiii. Fusion 360 LLC., USA
	(Wholly owned subsidiary of Persistent Systems Inc.)
	xxiv, Data Glove IT Solutions Limitada, Costa Rica
	(Wholly owned subsidiary of Persistent Systems Germany GmbH)

Notes forming part of financial statements

Related party disclosures

Related parties with whom transactions have taken place
Associate	Klisma e-Services Private Limited i.
	(Dissolved with effect from August 10, 2021)
Key management personne	Dr. Anand Deshpande, Chairman and Managing Director i.
	Mr. Christopher O' Connor (Resigned wef 9 August 2020) @ ii.
	Mr Sandeep Kalra, Executive Director and Chief Executive Officer * iii.
	iv Mr. Sunil Sapre, Executive Director and Chief Financial Officer
	Mr. Amit Atre, Company Secretary v.
	vi Ms Roshini Bakshi, Independent Director
	vii Mr. Pradeep Bhargava, Independent Director
	viii Dr. Anant Jhingran, Independent Director
	Mr. Thomas Kendra, Non executive non independent director ix.
	x. Mr. Prakash Telang, Independent Director (Retired wef July 24, 2020)
	xi. Mr. Kiran Umrootkar, Independent Director (Retired wef July 24, 2020)
	xii Mr. Guy Eiferman, Independent Director
	xiii. Dr. Deepak Phatak, Independent Director
	xiv. Ms. Avani Davda, Independent Director (Appointed wef December 21, 2021)
Relatives of Key management personnel	Mr. Suresh Deshpande i.
	(Father of the Chairman and Managing Director)
	ii Mrs Sulabha Deshpande
	(Mother of the Chairman and Managing Director)
	iii Mrs. Sonali Anand Deshpande
	(Wife of the Chairman and Managing Director)
	iv Dr. Mukund Deshpande \$
	(Brother of the Chairman and Managing Director)
	v Mrs Chitra Buzruk \$
	(Sister of the Chairman and Managing Director)
	vi. Mr. Arul Deshpande**
	(Son of the Chairman and Managing Director)
Members of Promoter Group	i. Rama Purushottam Foundation
Entities over which a key management	i Persistent Foundation
personne has significant influence

(ii) Related party transactions

			(In ₹ Million)
	Name of the related party and nature of relationship	For the year ended
		March 31, 2022	March 31, 2021
Sale of software services	Subsidiaries
	Persistent Systems, Inc.	12,314.10	8.456.81
	Persistent Systems Malaysia Sdn. Bhd.	87 33	97.44
	Persistent Systems Pte Ltd
	Persistent Systems France SAS	68.19	43.97
	Persistent Telecom Solutions Inc.	193.44	166.69
	Persistent Systems Germany GmbH	47 81	42.26
	Aepona Limited	7.72	12.52
	PARX Werk AG	3.26	2.88
	PARX Consulting GmbH	0.83	$\blacksquare$
	Youperience Limited	0.71	48.67
	CAPIOT Software Private Limited	14.91	73.10
	CAPIOT Software Pty Limited	6,80
	Software Corporation International LLC.	13.59

	Total	12,758.69	8,944.34
Recovery of cost of assets	Subsidiaries
	Persistent Systems, Inc.		18.93
	Total	ä,	18.93
Investment in wholly owned subsidiary	Subsidiaries
	Persistent Systems, Inc.	570.25
	CAPIOT Software Private Limited	107.10	376.61
	Total	677.35	376.61
Payment of liability on behalf of	Subsidiaries
	Persistent Systems, Inc.		42 42
	Total	$\overline{a}$	42 42
Interest income	Subsidiaries
	CAPIOT Software Private Limited	L.	1.45
	Persistent Systems Germany GmbH	1.01
	Total	1.01	1.45
Dividend Income	Subsidiaries
	Persistent Systems Pte Ltd		70.33
	Persistent Systems Malaysia Sdn. Bhd.	53 16	61.12
	Total	53.16	131.45
Cost of professionals	Subsidiaries
	Persistent Systems, Inc.	318.81	1,011.10
	Persistent Systems France SAS	26,58	36.72
	Persistent Systems Malaysia Sdn. Bhd.	146.97	98.36
	Persistent Telecom Solutions Inc.	62.68	41.19
	Aepona Limited	20.08	26.00
	Persistent Systems Lanka (Private) Limited	52.23	54.50
	Persistent Systems Mexico, S.A. de C.V.	0.16	34.03
	Persistent Systems Germany GmbH	10.24
	PARX Consulting GmbH	0.47
	Parx Werk AG	0.22	3.62
	Persistent Systems Pte Ltd	7.36	4.40
	Youperience GmbH		0.56
	Youperience Limited	3.81	9.15
	CAPIOT Software Private Limited		4.10
	Total	649.61	1,323.73
Purchase of Software	Subsidiary
	Persistent Systems, Inc.	23.30	52.21
	Persistent Telecom Solutions Inc.		4.10
	Total	23.30	56.31
Selling and marketing expenses	Subsidiaries
	Persistent Systems, Inc.	1,023.73	737 83
	Persistent Systems Pte Ltd	4.90	1.99
	Total	1,028.63	739.82
Commission received on corporate	Subsidiary
guarantee
	Persistent Systems, Inc.	3.09	2.61
	Total	3.09	2.61

Notes forming part of financial statements

(ii) Related party transactions

	Name of the related party and nature of relationship	For the year ended	(In ₹ Million)
		March 31, 2022	March 31, 2021
Remuneration #	Key Management Personnel
(Salaries, bonus and contribution to PF)	Dr. Anand Deshpande	31.94	26.26
	Mr. Christopher O'Connor@	Ĭ.	0.71
	Mr. Sunil Sapre (including value of perquisites for stock options	90 21	46 42
	exercised ₹73.25 million during the year 2021-22 (Previous year: ₹ 31.72 million)
	Mr. Amit Atre (including value of perquisites for stock options exercised ₹ 3.19 million during the year 2021-22 (Previous year: Nil)	7.17	3.40
	Mr Sandeep Kalra*	2.90	1.21
	Independent directors:
	Ms. Roshini Bakshi	4.08	2.09
	Mr. Pradeep Bhargava	4 3 3	2.26
	Dr. Anant Jhingran	3.53	1.83
	Mr. Thomas Kendra	3.63	1.69
	Mr. Prakash Telang	$\ddot{\phantom{a}}$	0.74
	Mr. Kiran Umrootkan		0.74
	Mr. Praveen Kadle	4.19	2.08
	Mr. Guy Eiferman	3.81	1.79
	Dr. Deepak Phatak	3.88	1.81
	Ms. Avani Davda***	0.79
	Relatives of Key Management Personnel
	Dr. Mukund Deshpande (including value of perquisites for stock options		2.87
	exercised nil during the year (₹ ₹ 2.87 million during the year 2020-21) \$
	Mr. Arul Deshpande **	0.26	0.03
	Total	160.72	95 93
Dividend paid	Key Management Personnel
	Dr. Anand Deshpande	457.22	319.90
	Mr. Sunil Sapre	1.04	0.06
	Mr Sandeep Kalra	177	0.56
	Mr Amit Atre	0.03
	Independent directors:
	Mr. Pradeep Bhargava Ms. Roshini Bakshi	0.24 Ĭ.	0.18 0.07
	Relatives of Key Management Personnel
	Mr. Suresh Deshpande	0.10	0.07
	Mrs. Chitra Buzruk \$	9.39	6.57
	Dr. Mukund Deshpande \$	8.00	5.60
	Mrs. Sonali Anand Deshpande	2 2 4	1.57
	Mrs. Sulabha Suresh Deshpande	0.12	0.64
	Mr. Arul Deshpande **	0.20	0.14
	Total	480 35	335 36
Employee stock compensation	Subsidiaries
	Persistent Systems Inc.	210 96	53.14
	Total	210.96	53.14
Donation given	Entity over which a key management personnel has significant influence
	Persistent Foundation	115.36	140,00
		115.36	140.00

Notes

ਾ•ਾ•਼ਤ
* Mr. Sandeep Kalra, Executive Director and Unit President was appointed as the Chief Executive Officer ('CEO') of the Company with effect from October 23,
2020. Amount of remuneration represents remuneration pai

@ Amount of remuneration for Mr. Christopher O' Connor represents remuneration paid through Persistent Systems Limited only. He has resigned wef August 9,
2020.

\$ Dr. Mukund Deshpande and Mrs. Chitra Buzruk and have resigned w.e.f. Apr 28, 2020 and May 29, 2020 respectively.

** Mr. Arul Deshpande has joined with effect from March 8, 2021. Amount of remuneration represents remuneration paid through Persistent Systems Limited only.

***Ms. Avani Davda has joined with effect from December 21, 2021

The remuneration to the key managerial personnel does not inducle the provisions made for gratuity, long service awards and leave benefits, as they are determined on an actuarial basis for the Company as a whole.

(iii) Outstanding balances

			(In ₹ Million)
	Name of the related party and nature of relationship	March 31, 2022	As at March 31, 2021
Advances given	Subsidiaries
	Persistent Systems, Inc.	69.15	18.72
	Persistent Systems France SAS	5.49	0.38
	Persistent Telecom Solutions Inc.	0.13	0.01
	Persistent Systems Israel Ltd.	0.14
	Persistent Systems Lanka (Private) Limited	0.72	0.02
	Persistent Systems Malaysia Sdn. Bhd	0.07
	Persistent Systems México, S A de C V	10.01
	Persistent Systems Germany GmbH	1.48
	PARX Consulting GmbH	0.06
	PARX Werk AG	1.88
	Youperience GmbH	0.04
	Youperience Limited	0.04
	Persistent Systems Pte. Ltd.	0.29
	Aepona Group Limited	0.08
	Aepona Limited	1.16	2.34
	Software Corporation International LLC.	0.25	$\blacksquare$
	Associate
	Klisma e Services Private Limited @		0.81
	Total	90.99	22.28
Advances received inclusive of Advances	Subsidiaries
from customers	PARX Werk AG		0.17
	Aepona Limited		1.64
	Persistent Systems Israel Ltd.		1.28
	CAPIOT Software Private Limited		15.00
	Persistent Systems France SAS		3.57
	Persistent Systems, Inc.	749.40	976.15
Trade payables	Subsidiaries	749.40	99781
	Persistent Systems, Inc.		165.68
	Persistent Systems Malaysia Sdn. Bhd.	7.18	22.21
	Persistent Telecom Solutions Inc.	18 33	3.41
	Persistent Systems Pte Ltd		2.83
	Aepona Limited	3.89	8.77
	Youperience GmbH	$\blacksquare$	0.05
	Youperience Limited	1.64	1.30
	Persistent Systems Mexico, S A, de C V.	٠	3.39
	PARX Werk AG		0.60
	PARX Consulting GmbH	0.01
	Total	31.05	208 24
Trade receivables	Subsidiaries
	Persistent Systems France SAS	8.58
	Persistent Systems, Inc.	70.63
	Persistent Telecom Solutions Inc.	34.73	36.37
	Persistent Systems Malaysia Sdn. Bhd.	26.58	26.41
	Persistent Systems Germany GmbH	16.18	6.43
	PARX Consulting GmbH	0.92	18.82
	Persistent Systems Mexico, S.A. de C.V.	0.08	$\blacksquare$
	Youperience Limited	0.63
	Persistent Systems Lanka (Private) Limited	0.07	3.67
	Total	158.40	91.70
Unbilled Receivable	Subsidiaries
	Persistent Systems, Inc.	2,086.35	712 44
	Persistent Telecom Solutions Inc.	50.28	14.00
	Persistent Systems Malaysia Sdn. Bhd. Aepona Limited	4.81 0.62	10.09 0.60
	Persistent Systems Germany GmbH	10.47	14.04
	Persistent Systems France SAS	14.35	13.17
	Youperience Limited	$\sim$	6.43
	PARX Consulting GmbH	0.01
	PARX Werk AG	3.01
	CAPIOT Software Private Ltd.		73.10
	Total	2,169.90	843 87
Loans given	Subsidiaries
	Persistent Systems Germany GmbH	420.67
	Associate
	Klisma e Services Private Limited @		27.43
	Total	420.67	27 43
Interest accrued on loan given	Subsidiary
	Persistent Systems Germany GmbH	1.01
		1.01	$\blacksquare$

(iii) Outstanding balances

			(In ₹ Million)
	Name of the related party and nature of relationship		As at
		March 31, 2022	March 31, 2021
Investments	Subsidiaries
	Persistent Systems, Inc.	3.048.26	2,478.01
	Persistent Systems Pte Ltd	15.50	15.50
	Persistent Systems France SAS	97.47	97.47
	Persistent Systems Malaysia Sdn, Bhd.	102.25	102.25
	Persistent Systems Germany GmbH	1,265 91	1,265.91
	CAPIOT Software Private Ltd.	483.71	376.61
	Associates
	Klisma eService Private Limited @		0.05
	Total	5,013,10	4,335.80

@ 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. These balances

(iv) Guarantees and letters of comfort given on behalf of subsidiary
i. Guarantees outstanding as at March 31, 2022: Rs. 770.78 Million (March 31, 2021: Rs. 1,109.08 Million).
ii. Letters of comfort of USD 60 Million: Rs.

Notes forming part of financial statements

35. Employees stock option plans (ESOP)

Certain information in this note relating to number of shares, options and per share/option price has been disclosed in full and is not rounded off.

a) Details of Employee stock option plans

.
The Company has framed various share based payment schemes for its employees. The details of various equity-settled employee stock option plan ('ESOP') schemes adopted by the Board of Directors are as follows:

ESOP scheme	No. of options granted #	Date of adoption	Initial	Exercise period
		by the Board/Members	Grant date
Scheme I	4.560.500	11 Dec 99	11 Dec 99	$\star$
Scheme II	753.200	23 Apr 04	23 Apr 04	10 Years
Scheme III	2.533.300	23 Apr 04	23 Apr 04	$\pmb{\ast}$
Scheme IV	6.958.250	23 Apr 06	23 Apr 06	10 Years
Scheme V	1.890.525	23 Apr 06	23 Apr 06	$\star$
Scheme VI	1.216.250	31-Oct-06	31-Oct-06	10 Years
Scheme VII	1.784.975	30 Apr 07	30 Apr 07	10 Years
Scheme VIII	42.000	24-Jul-07	24 Jul-07	3 Years
Scheme IX	1.374.462	29 Jun 09	29 Jun 09	10 Years
Scheme X	3.062.272	10 Jun 10	29 Oct 10	2 3 Years
Scheme XI ^**	1.614.200	26-Jul-14	03-Nov-14	4-5 Years
Scheme XII ***	67.300	04 Feb 16	08 Apr 16	2.5 Months
Scheme XIII	4.913.338	27-Jul-17	01 Aug 19	4-5 Years
Scheme XIV	80,000	27-Jul-17	01 May 19	3 Years
# Adjusted for bonus issue of shares.

*No contractual life is defined in the scheme.

**The options under Scheme XI, which is a performance based ESOP scheme will vest after 2-3 years in proportion of credit points earned by the
employees every quarter based on performance. The maximum options which can be

*** The options under Scheme XII, ESOP scheme would vest after 1 year. The maximum options which are granted under this scheme are 50 per employee.

The vesting period and conditions of the above ESOP schemes is as follows:

All the above ESOP schemes have service condition (other than scheme XI which Is based on performance criteria), which require the employee to complete a specified period of service, as a vesting condition. The vesting pattern of various schemes has been provided below:

Service period from the		% of Options vesting
date of grant	Scheme I to V & X	Scheme VII	Scheme VIII	Scheme XIV
12 Months	10%	20%	25%	0.00%
24 Months	30%	40%	50%	33.33%
36 Months	60%	60%	75%	66.66%
48 Months	100%	80%	100%	100%
60 Months	NA	100%	NA	NA
(ii) Scheme VI
Service period from the date of grant		% of Options vesting
18 Months		30%
Every quarter thereafter		5%
(iii) Scheme IX
Service period from the date of grant		% of Options vesting
	30-60 Months varying from employee to employee	100%
(iv) Scheme X
Service period from the		% of Options vesting
date of grant	Grant 1	Grant 2	Grant 3
12 Months	Based on credit points earned	25%	40%
24 Months	which varies from employee to	50%	30%
36 Months	employee	75%	30%
48 Months	NA	100%	NA
	NA	NA	NA
60 Months
(v) Scheme XII:
Service period from the date of grant		% of Options vesting
1 year		100%
(v) Scheme XIII:
Service period from the		% of Options vesting
date of grant	Grant 1	Grant 2	Grant 3
12 Months	25%	40%	33%
24 Months	50%	30%	67%
36 Months	75%	30%	100%
48 Months	100%	NA.	NA.
60 Months	NA	NA	NA.

Notes forming part of financial statements

b) Details of activity of the ESOP schemes

Movement for the year ended March 31, 2021 and March 31, 2022:

ESOP Scheme	Particulars	Year Ended	Outstanding at the beginning of the Year	Granted during the Year	Forfeited during the Year	Exercised during the Year	Outstanding at the end of the Year	Exercisable at the end of the Year
Scheme I	Number of Options	31-Mar-21	17		4		13	13
	Weighted Average Price	31 Mar 21	4.42		4.58		4.37	4.37
	Number of Options	31 Mar 22	13		13
	Weighted Average Price	31-Mar-22	4.37		4.37	٠	×.
Scheme II	Number of Options	31-Mar-21	÷.		ä,
	Weighted Average Price	31-Mar 21
	Number of Options	31 Mar 22
	Weighted Average Price	31 Mar 22
Scheme III	Number of Options	31-Mar-21	147,835	ä,		20,473	127,362	127,362
	Weighted Average Price	31 Mar 21	31 94			30.22	32.07	32.07
	Number of Options	31 Mar 22	127,362			19,103	108,259	108,259
	Weighted Average Price	31-Mar-22	32.07			33 69	31.78	31.78
Scheme IV	Number of Options	31 Mar 21	406,348	$\overline{a}$		80,050	326,298	326,298
	Weighted Average Price	31 Mar 21	53.07			46 70	54.83	54.83
	Number of Options	31-Mar-22 31 Mar 22	326,298 54.83			80,000 55.16	246,298 54 72	246,298 54 72
Scheme V	Weighted Average Price Number of Options	31-Mar-21	60,332			8,641	51,691	51,691
	Weighted Average Price	31-Mar 21	27.58			28.99	27.22	27.22
	Number of Options	31 Mar 22	51,691			1,810	49,881	49,881
	Weighted Average Price	31 Mar 22	27 22			44 14	26.61	26.61
Scheme VI	Number of Options	31 Mar 21
	Weighted Average Price	31 Mar 21
	Number of Options	31 Mar 22
	Weighted Average Price	31-Mar 22	ä
Scheme VII	Number of Options	31-Mar 21	6,961			3,620	3,341	3,201
	Weighted Average Price	31 Mar 21	58.18			56.83	59.65	61.12
	Number of Options	31 Mar 22	3,341			3,200	141	141
	Weighted Average Price	31 Mar 22	59.65			61.12	26.29	26.29
Scheme VIII	Number of Options Weighted Average Price	31-Mar-21 31 Mar 21
	Number of Options	31 Mar 22
	Weighted Average Price	31 Mar 22		÷	٠
Scheme IX	Number of Options	31 Mar 21	135,920			6,216	129,704	129,704
	Weighted Average Price	31-Mar-21	54.74			54.74	54 74	54.74
	Number of Options	31 Mar 22	129,704			13,993	115,711	115,711
	Weighted Average Price	31 Mar 22	54 74			54 74	54 74	54.74
Scheme X	Number of Options	31 Mar 21	125,062		92,955	32,107
	Weighted Average Price	31-Mar-21	188.75		183.38	204.30
	Number of Options	31-Mar-22
	Weighted Average Price	31 Mar 22
Scheme XI	Number of Options	31-Mar-21	570,000	295,000	300,000	119,000	446,000	6,000
	Weighted Average Price	31-Mar-21	10.00	10.00	10.00	10.00	10.00	10.00
	Number of Options Weighted Average Price	31 Mar 22 31 Mar 22	446,000 10.00	257,200 10.00	23,700 10.00	167,750 10.00	511,750 10.00	28,725 10.00
Scheme XII	Number of Options	31-Mar-21	$\overline{\phantom{a}}$	$\overline{a}$	$\overline{a}$	$\sim$
	Weighted Average Price	31-Mar-21
	Number of Options	31 Mar 22
	Weighted Average Price	31-Mar-22			٠
Scheme XIII	Number of Options	31-Mar-21	920,000	1,947,500	ä,	121,275	2,746,225	98,850
	Weighted Average Price	31-Mar-21	451.65	1,008.29		442.47	846.80	442.47
	Number of Options	31 Mar 22	2,746,225	1,990,838	923,803	433,136	3,380,124	226,045
	Weighted Average Price	31 Mar 22	846 80	3,116.67	1,679.25	727 30	1,971.52	892 30
Scheme XIV	Number of Options	31-Mar-21	80,000		40,000		40,000	10.000
	Weighted Average Price	31-Mar-21	540.82		540.82	Ĭ.	540.82	540.82
	Number of Options	31-Mar-22	40,000		40,000
Total	Weighted Average Price Number of Options	31-Mar-22 31-Mar-21	540.82 2,452,475	2,242,500	540.82 432,959	391,382	3,870,634	753,119
	Number of Options	31-Mar-22	3,870,634	2,248,038	987,516	718,992	4,412,164	775,060

The weighted average share price for the period over which stock options were exercised was ₹ 3682.54 (previous year ₹ 1131.43).

Notes forming part of financial statements

c) Details of exercise price for stock options outstanding at the end of the year

			As at March 31, 2022		As at March 31, 2021
Scheme	Range of exercise price	No. of Options outstanding*	Weighted average remaining	No. of Options outstanding	Weighted average remaining
Scheme	$2.04 - 9.57$		Note (i)	13	Note (i)
Scheme II	$12.96 - 48.21$
Scheme III	12 96 - 48 21	108,259	Note (i)	127,362	Note (i)
Scheme IV	$22.23 - 61.12$	246,298	1.73	326,298	2,39
Scheme V	$22.23 - 44.14$	49,881	Note (i)	51,691	Note (i)
Scheme VI	$22.23 - 30.67$
Scheme VII	$24.17 - 61.12$	141	0.52	3,341	2.73
Scheme VIII	48 21 - 48 21
Scheme IX	54 74 - 54 74	115,711	1.24	129,704	2.24
Scheme X	157 58 - 279 70
Scheme XI	10	511.750	4.58	446,000	2.25
Scheme XII	10
Scheme XIII	442 47 - 3801 78	3,380,124	3.86	2.746.225	5.59
Scheme XIV	540.82 - 540.82			40,000	3.08

Note (i) No contractual life is defined in the scheme.

d) Effect of the employee share-based payment plans on the statement of profit and loss and on its financial position

Compensation expense arising from equity-settled employee share-based payment plans for the year ended March 31, 2022 amounted to ₹ 739.52 million (Previous year ₹
236.33 million). The liability for employee stock options

e) Weighted average exercise prices and weighted average fair values of options

The Binomial tree and Black-Scholes valuation models have been used for computing the weighted average fair value of the stock options granted during the financial year 2021- $22:$

		March 31, 2022		March 31, 2021
Particulars	RSU	ESOP	RSU	ESOP
	Scheme X	Scheme XIII	Scheme XI	Scheme XIII
Weighted average share price $ $ (Rs.)	3819.71	3670.90	948.4	1182.97
Weighted Exercise Price (Rs.)	10	3107.82	10	1008
Weighted Average Fair Value $ $ (Rs.)	3615.75	938.25	838.75	424 39
Expected Volatility	24 42	245	31.7	29.09
Life of the options granted **			4 yrs	4 yrs
(Vesting and exercise period)	$3 - 4$ yrs	$3 - 4$ yrs
Dividend Yield	200.00%	200.00%	2.00%	2.00%
Average risk free interest rate	4.98%	4 4 8%	5.56%	5.49%

** Life of option varies as per graded vesting period for different class of options granted.

The inputs to the model include the share price at date of grant, exercise price, expected volatility, expected dividends, expected term and the risk-free rate of interest, Expected volatility during the expected term of t

Notes forming part of financial statements

Contingent liabilities

Sr _No	Particulars	As at
		March 31, 2022	March 31, 2021
କ	debt* Claims against the company not acknowledged as 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 rear 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) services on reverse charge basis for the Financial on September 23, 2017	17378	173.78
	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 towards the demand and the same forms part of the GST receivable balance. The Company has paid ₹ 165.58 million under protest to claim credit/refund for the amount paid
	ious periods amounting to ₹ 255.52 million, which have been refunded under (ii) In respect of export incentives pertaining to previ	296.55	296.55
	Based on the documents filed with relevant authorities and based on the consultations with subject matter specialists, the Company protest with interest of ₹ 41.03 million, the Company has filed an application with Directorate General of Foreign Trade (DGFT). believes that its position is most likely be upheld on ultimate resolution.
	(iii) Other Pending litigations in respect of Indirect taxes.	13.53	2733
$\mathbf{\Omega}$	Income tax demands disputed in appellate proceedings.	85502	47870
ଢ	sidiaries Guarantees and Letter of Comfort on behalf of Sub
	Guarantees given on behalf of subsidiaries	77078	1,109.08
$\mathbf{\Omega}$	*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 Letters of comfort on behalf of subsidiary (USD 60 Million (Previous year: Nil)) to arise and therefore, no provision is considered necessary in the financial statements.	4,547 40
	37 Capital and other commitments
			$(ln \xi$ Million)
		As at

For commitments relating to lease agreements, please refer note 33.

Estimated amount of contracts remaining to be executed on capital account and not provided for

Capital commitments

Other commitments Forward contracts

4103

158.66

March 31, 2021

March 31, 2022

10,41034

13,605.02

Notes forming part of financial statements

38. Details of Corporate Social Responsibility expenditure

			(In ₹ Million)
		For the year ended
		March 31, 2022	March 31, 2021
	a) Gross amount required to be spent by the Company during the year	110.24	94.49
	b) Amount of Expenditure incurred
	(i) Construction/acquisition of any asset
	(ii) On purposes other than (i) above	115.53	150.00
	c) Shortfall at the end of year
	f) Total of previous year shortfall
	e) Reason for shortfall
	g) Nature of CSR Activity	Donation given to the following entities: a. Persistent Foundation b. Help Age India c. Wildlife Research and Conservation Society	Donation given to Persistent foundation and PM Care fund
f)	Details of related party transactions Donation given to Persistent Foundation	115.36	140.00
	h) Deails of provision made for liability incurred by entering into a contractual obligation

39. Business Combination a Shree Infosoft Pvt. Ltd

(1) On November 18, 2021 the Company acquired business of implementing and maintaining innovative cloud, infrastructure, data, and AIML solutions from Shree Infosft Pvt. Ltd, India ('Shree Infosoft'). After the acquisition of business, the Company does not hold any equity interest in Shree Infosoft. The acquisition will strengthen the Company's presence
in innovative cloud, infrastructure and s add a new point of presence in NCR, India, additional industry capabilities.
(2) The acquisition of the said businesses is 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 and liabilities assumed as at the reporting date. The Company has exercised the option available under Ind AS 103, which provides The Company a period of twelve months from the acquisition date for completing the accounting of purchase price allocation on provisional basis.

The fair value of amount of consideration paid/payable recognised on provisional basis is ₹ 108.71 million.

(3) Based on provisional purchase price allocation, the Company has recognised Property, Plant and Equipment amounting to ₹197 Million and provisional intangible assets represented by contractual rights amounting to ₹85 Million and goodwill amounting to ₹21.74 Million.

b. Data Glove IT Solutions Private Limited

(1) On March 1, 2022 the Company acquired business from Data Glove IT Solutions Private Ltd, which comprise of Microsoft Cloud Modernization Services Partnership with Gold level competencies in Azure Cloud Platform, Data Center, Application Development and Data Analytics, Application Integration. After the acquisition of business, the Company does not hold any equity interest in Data Glove IT Solutions Private Ltd. This acquisition will help Persistent enhance its partnership and expand expertise in Azure-based digital
transformation, enabling us to capture a l establishing a new nearshore delivery center in Costa Rica and expanding its presence in the US and India.
(2) The acquisition of the said businesses is 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 and liabilities assumed as at the reporting date. The Company has exercised the option available under Ind AS 103, which provides The Company a period of twelve months from the acquisition date for completing the accounting of purchase price allocation on provisional basis.

The fair value of amount of consideration paid/payable recognised on provisional basis is ₹ ₹ 520.16 Million.

(3) Based on provisional purchase price allocation, the Company has recognised provisional intangible assets represented by contractual rights amounting to ₹ 420.31 Million and goodwill amounting to ₹99.85 Million.

Ratio	Denomination	Numerator	Denominator	March 31, 2022	March 31, 2021	% change	Reason for variance
							If more than 25%)
(a) Current Ratio	Number	Current Assets	Current Liabilties	379	4.70	1936%
(b) Debt-Equity Ratio	$\aleph$	Debt	Shareholder's Equity	0.02%	0.03%	0.01%
(c) Debt Service Coverage Ratio	Number	Earnings available for debt service	Current debt liability	4,509.01	3,116.86	44.67% Note 1
(d) Return on Equity Ratio		Profit after tax ĕ	Average Shareholder's Equity	2255%	1995%	2,60%
(e) Trade Receivables turnover ratio	Number	Revenue from operations	Average Trade receivables	9.67	848
(f) Trade payables turnover ratio	Vumber	Cost of Professionals+other expenses+Other non cash adjustments	Average Trade payables	5.73	4.73	14 09% 21 23%
(g) Net capital turnover ratio	Number	Revenue from operations	Working Capital	237	1,47	60.96% Note 2
(h) Net profit ratio	$\delta$	Profit after tax 흦	Revenue	19.18%	2037%	119%
(i) Return on Capital employed	$\%$	Profit before Interest and taxes	Average capital employed	30.20%	2652%	3 68%
(j) Return on investment	$\aleph$	Income generated from treasury investments	Average invested funds in treasury investments	590%	516%	074%
(a) Details of Loans given
							In ₹ Million
Name of Party		Rate of Interest	Purpose		Term	March 31, 2022	March 31, 2021
Persistent Systems Germany GmbH	3 months Euro In	terbank Offered Rate plus 300 basis points.	Loan granted for working capital requirements and to fund acquisition opportunities		36 Months	420.67
Klisma e-Service Private Limited		$12%$ PA	Loan was granted for meeting business requirements.		12 Months		2743
(b) Details of gurantees given on behalf of subsidiaries							In ₹ Million
		Name of Subsidiary		As at March 31, 2022 \$ Million	TOIllion	As at March 31, 2021 \$ Million	T Million
		Persistent Systems Inc.		10.17	770.78	$15 - 17$	1,149.73

Notes forming part of financial statements

Auditors' remuneration

	For the year ended
March 31, 2022	March 31, 2021
n ₹ Million	In ₹ Million

8.50	7.58

0.30	1.22
0.12	0.20
8.92	9.00

43. Research and development expenditure

The particulars of expenditure incurred on in-house research and development are as follows:

		For the year ended
	March 31, 2022	March 31, 2021
	In ₹ Million	In ₹ Million
Capital
Revenue	136.72	196.72
	136 72	196.72

44. Details of dues to micro and small enterprises as defined under MSMED Act, 2006

There are no defaults and overdue amounts payable to suppliers, who have intimated about their status as Micro and Small Enterprises as per the provisions of
Micro, Small and Medium Enterprises Development Act, 2006 (M

45. Net dividend remitted in foreign exchange

					In ₹ Million
Particulars	Period to which dividend relates	No. of non-resident shareholders	No of equity shares held on which dividend was due	For the year ended
			(in million)	March 31, 2022	March 31, 2021
Interim dividend	2021 22		0.37	5.95	4.11
Final dividend	2020 21	٠	0.37	1.76

Notes forming part of financial statements

The Company has deposits of ₹ 430 million with the financial institutions viz. Infrastructure Leasing & Financial Services Ltd. (IL&FS) and IL&FS Financial Services Ltd. (referred to as "IL&FS Group") as on the balance sheet date. These were due for maturity from January 2019 to June 2019. In view of the discussions and the spectrum of the covery 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 The Company continues to monitor developments in the matter and is committed to take steps including legal action that may be necessary to ensure full recovery of the said deposits.
The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the company towards Provident Fund and Gratuity. The Ministry of Labour and Employment has released draft rules for the Code on Social Security, 2020 on November 13, 2020, and has invited suggestions from stakeholders which are under active consideration by the Ministry. The Company will assess the impact and its evaluation once the subject rules are notified and will give appropriate impact in its financia the financial impact are published.
The financial statements are presented in ₹ Million and decimal thereof except for per share information or as otherwise stated.
Previous year's figures have been regrouped where necessary to conform with the current year's classification.

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

SHASHI

Membership No.: 101797

Shashi Tadwalkar

Partner

Digitally signed by
SHASHI TADWALKAR Anand Destrpande TADWALKAR Date: 2022.04.27

Dr. Anand Deshpande Chairman and Managing

Director

DIN: 00005721

Persistent Systems Limited

may Praveen Kadle Sandeep Kalra Executive Director and Independent Director Chief Executive Officer DIN: 02506494 DIN: 00016814

Place: Pune Place: Pune Date: April 27, 2022

For and on behalf of the Board of Directors of

Sandsep

Place: Pune Date: April 27, 2022 Date: April 27, 2022

Sunil Sapre

inil Sapre (Apr 27, 2022 17:18 GMT+5.5)

Sunil Sapre Executive Director and Chief Financial Officer DIN: 06475949

Amit Atre Company Secretary

Amit Atre

Place: Pune Date: April 27, 2022

Place: Pune Date: April 27, 2022 Place: Pune Date: April 27, 2022

Membership No. A20507

Amit Atre (Apr 27, 2022 16:56 GMT+5.5)

Kalra

AI assistant

Persistent Systems Limited — Interim / Quarterly Report 2022

60826_rns_2022-04-27_c3761fe4-c809-43e3-b74c-7b786c9e5013.pdf

Ref: Symbol: PERSISTENT

Sub: Audited Financial Statements for the quarter and year ended March 31, 2022

Independent Auditor's Report on the Audit of the Condensed Interim Consolidated Financial Statements for the quarter and year ended 31 March 2022

To the Members of Persistent Systems Limited

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

Other Matters

For Walker Chandiok & Co LLP

UDIN:22101797AHXPFB7947

Annexure 1

List of entities included

As per our report of even date

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

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

es forming part of condensed interim consolidated financial statements

1 Nature of operations

lotes forming part of condensed interim consolidated financial statements

2.1 Historical cost convention

2.2 Compliance with Ind AS

2.3 New and amended standards adopted by the Group

2.4 New amendments issued but not effective

2.5 Reclassifications consequent to amendments to Schedule III

3 Principles of consolidation

Notes forming part of condensed interim consolidated financial statements

Critical accounting estimates

4.1 Use of estimates

4.2 Estimation of uncertainties relating to the global health pandemic from COVID-19:

4.3 Critical accounting estimates

a) Revenue recognition

b) Income taxes

c) Business combination

e) Leases

b) Property, Plant and Equipment

c) Intangible assets

d) Depreciation and amortization

e) Borrowing costs

f) Leases

Where the Group is a lessee

Group as a lessor

tes forming part of condensed interim consolidated financial statements

h) Financial instruments

Initial recognition and measurement

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)

Financial liabilities

Financial liabilities at amortised cost

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

Investments in subsidiaries, associates and joint ventures

Derivative financial instruments

s forming part of condensed interim consolidated financial statements

Derecognition

Financial guarantee contracts

Fair value of financial instruments

Impairment of financial assets

i) Revenue recognition

Income from software services and products

Interest

Dividend

Contract balances Contract assets

es forming part of condensed interim consolidated financial statements

Contract liabilities

i) Government grants

k) Foreign currency translation

Foreign currency transactions and balances

Initial recognition

Conversion

Exchange differences

Persistent Systems Limited Interim / Quarterly Report 2022

Persistent Systems Limited
Notes forming part of Condensed In

c) Aggregate number of bonus shares issued, shares issued for consideration other than cash and shares bought back during the period of five years
immediately preceding the reporting date

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,

Out of the cash and cash equivalent balance as at March 31, 2022, the Group can utilise ₹ 35,75 Million (Previous year: ₹ 154,39
Million) only towards certain predefined activities specified in the agreement.

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

A. Equity share capital
(Refer note 4)