Persistent Systems Limited — Regulatory Filings 2021

Apr 29, 2021

NSE & BSE / 2021-22 / 14

April 29, 2021

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

Ref: Symbol: PERSISTENT

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

Ref: Scrip Code: 533179

Dear Sir/Madam,

Sub: Outcome of the Board Meeting held on April 28, 2021 and continued on April 29, 2021

Further to our intimations dated April 16, 2021, we wish to inform that, the Board of Directors, at its meeting held through Tele-conferencing on April 28, 2021 and continued on April 29, 2021, has interalia taken the following decisions:

A. Approval of the Audited Financial Results for the quarter and year ended March 31, 2021

Pursuant to Regulation 33 and all other applicable regulations, if any of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Audited Financial Results for the quarter and year ended March 31, 2021 have been approved. Accordingly, we enclose the following documents:

• 1. Auditors' Report dated April 29, 2021 on the Consolidated Financial Results of the Company for the quarter and year ended March 31, 2021;
• 1. Consolidated Financial Results of the Company for the quarter and year ended March 31, 2021;
• 1. Auditors' Report dated April 29, 2021 on the Unconsolidated Financial Results of the Company for the quarter and year ended March 31, 2021;
• 1. Unconsolidated Financial Results of the Company for the quarter and year ended March 31, 2021.

Pursuant to Regulation 33(3)(d) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, a declaration that the Statutory Auditors of the Company have issued an Audit Report with unmodified opinion on the Audited Financial Results of the Company (Standalone and Consolidated) for the quarter and year ended March 31, 2021 is attached for your ready reference.

B. Final Dividend for the Financial Year 2020-21

The Board has recommended Final Dividend of INR 6 (Six) per Equity Share INR 10 each for Financial Year 2020-21. This Final Dividend is subject to the approval of Members at the ensuing 31st Annual General Meeting which will be held on or before September 30, 2021. The Book Closure for the purpose of payment of Final Dividend for the Financial Year 2020-21 will be determined later.

Please note that the discussion on above agenda items was concluded at 1900 Hrs (IST). Pursuant to our intimation dated April 16, 2021, the Board Meeting will continue for discussing other agenda items on Thursday, April 29, 2021 and Friday, April 30, 2021.

Please acknowledge the receipt.

Thanking you, Yours Sincerely, For Persistent Systems Limited

AMIT MURARI ATRE Digitally signed by AMIT MURARI ATRE Date: 2021.04.29 19:01:29 +05'30'

Amit Atre Company Secretary ICSI Membership No.: A20507

Encl: As above

NSE & BSE / 2021-22 / 15

April 29, 2021

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

Ref: Symbol: PERSISTENT

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

Ref: Scrip Code: 533179

Dear Sir/Madam,

In terms of the provisions of the Regulations 33(3)(d) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (the 'Regulations'), we hereby state that the Statutory Auditors of the Company M/s. Walker Chandiok & Co LLP, Chartered Accountants (Registration No. 001076N/N500013), have issued an Audit Report with unmodified opinion on the Audited Financial Results of the Company (Standalone and Consolidated) for the quarter and year ended March 31, 2021.

Kindly take this declaration on record.

Thanking you,

Yours Sincerely,

For Persistent Systems Limited

Amit Atre Company Secretary ICSI Membership No.: A20507

Encl: As above

							.
Sr.	Particulars			Quarter ended		Year ended
No.			March 31, 2021 (Audited)	Dec 31, 2020 (Audited)	March 31, 2020 (Audited)	March 31, 2021 (Audited)	March 31, 2020 (Audited)
	Income
1	Revenue from operations (net)		11,133.58	10,753.98	9,263.65	41,878.88	35,658.08
2	Other income		400.36	300 12	293.20	1,077.72	1,323 77
3	Total income	$(1+2)$	11,533 94 11,054 10		9,556.85	42,956.60	36,981.85
$\overline{4}$	Expenses
	- Employee benefits expense		6,853.90	6,422.18	5,675.97	25,157.99	21,556.40
	- Cost of professionals		1,543.13	1,318.68	1,163.23	5,563.68	3,918.94
	- Finance costs		15.83	1375	11.68	57.94	63.32
	- Depreciation and amortization expense		419.05	461.05	419.80	1,755.50	1,659 62
	- Other expenses		853.25	1,188.34	1.155 74	4,327.06	5,260 15
	Total Expenses		9,685.16	9,404.00	8,426.42	36,862.17	32,458.43
5	Profit before exceptional items and tax	(3.4)	1,848.78	1,650.10	1.130.43	6,094.43	4,523.42
6	Exceptional items
$\overline{7}$	Profit before tax	$(5-6)$	1,848.78	1,650 10	1,130 43	6,094.43	4,523.42
8	Tax expense
	- Current tax		495.67	411.41	366.06	1,774.01	1,354.70
	- Tax charge / (credit) in respect of earlier years		3.68	(0.53)	6.58	10.58	52.55
	- Deferred tax charge / (credit)		(28.16)	29.98	(80.42)	(196.93)	(286.72)
	Total tax expense		471.19	440.86	292.22	1,587.66	1,120.53
	Profit for the period / year	(78)	1,377.59	1.209.24	838.21	4,506.77	3,402.89
	10 Other comprehensive income
	A. Items that will not be reclassified
	to profit and loss - Remeasurements of the defined benefit liabilities / assets (net of tax)		24.52	(32.22)	2.37	10.25	(34.80)
			24.52	(32.22)	2.37	10.25	(34.80)
	B. Items that may be reclassified to
	profit and loss - Effective portion of cash flow hedge (net of tax)		(53.45)	96.00	(250.14)	383.54	(429.15)
	- Exchange differences in translating the financial statements of foreign operations		120 35	314.59	369.96	(20.07)	323.15
			66.90	410.59	11982	363.47	(106.00)
	Total other comprehensive income for the period / year	$(A+B)$	91.42	378.37	122.19	373.72	(140.80)
11	Total comprehensive income for the period / year (Comprising Profit / (Loss) and Other Comprehensive Income for the period / year)	$(9+10)$	1,469.01	1,587.61	960.40	4,880.49	3,262.09
	12 Paid up equity share capital (Face value of share ₹ 10 each)		764 25	764 25	764.25	764.25	764.25
13 1 14	Other equity excluding revaluation reserves Earnings per equity share in $\bar{\tau}$						23,093.30
	(Face value of share ₹ 10 each) - Basic - Diluted		18.03 18.03	15.82 15.82	10.97 10.97	58.97 58.97	44.38 44 38
	15 Dividend per share (in ₹) (Nominal value per share ₹ 10)
	Interim dividend Final dividend		6.00	14.00	3.00	14.00 6.00	12.00
	Total dividend		6.00	14.00	3.00	20.00	12.00

Particulars	As at March 31, 2021 (Audited)	As at March 31, 2020 (Audited)
ASSETS
Non-current assets
Property, Plant and Equipment	2,401 40	2,224 60
Capital work in progress	12181	166 18
Right of use assets	852.58	566.81
Goodwill	85.94	88.94
Other Intangible assets	1,229.50	1,434.93
Intangible assets under development		137 20
Financial assets
- Investments	3,621.27	4,620.97
- Loans	134.76	176 13
- Other non-current financial assets	25 76	358.93
Deferred tax assets (net)	1,037.57	960.08
Other non-current assets	441.52	331.31
Total non-current assets	9,952.11	11,066.08
Current assets
Financial assets
- Investments	6,374.95	5,164.77
- Trade receivables (net)	5,708.97	5,921 96
- Cash and cash equivalents	2,419.30	1,899.99
- Other bank balances	7.389.70	2,672.19
- Loans	71 26	1371
- Other current financial assets	2,467.23	2,068.54
Current tax assets (net)	188.00	163.93
Other current assets	2,083 72	1,950 52
Total current assets	26,703.13	19,855.61
TOTAL ASSETS	36,655.24	30,921.69
EQUITY AND LIABILITIES
Equity
Equity share capital	764 25	764 25
Other equity	27,192.41	23,093.30
Total Equity	27,956.66	23,857.55
Liabilities
Non-current liabilities
Financial liabilities
- Lease liabilities	716.17	353 36
- Borrowings	44.27	46.22
Provisions	240.94	182.79
Total Non - current liabilities	1,001 38	582.37
Current liabilities
Financial liabilities
- Lease liabilities	222.00	309.06
- Trade payables	2,733.44	2,247.09
- Other financial liabilities	390.17	862 34
Other current liabilities	1,514.95	1,320.13
Provisions	2,477.79	1,610.99
Current tax liabilities (net)	358.85	132 16
Total current liabilities TOTAL EQUITY AND LIABILITIES	7,697.20	6,481.77 30,921.69
	36,655.24

		udited unconsolidated financial information

		₹ in Million
Segment assets	As at
	March 31, 2021 (Audited)	March 31, 2020 (Audited)
- BFSI	1,950.45	2,227.74
- Healthcare & Life Sciences	1,525.69	1,614 60
- Technology Companies and Emerging Verticals	4,405.60	4,148.16
Total allocable segment assets	7.881 74	7,990.50
Unallocable assets	28,773.50	22,931.19
Total assets	36,655 24	30.921.69

		For the year ended
Particulars		March 31, 2021 In ₹ Million	March 31, 2020 In ₹ Million
Cash flow from operating activities
Profit before tax Adjustments for:		6,094.43	4,523.42
Interest income		(558.70)	(545.28)
Finance costs		57.94	63.32
Dividend income			(13.98)
Depreciation and amortization expense		1,755.50	1,659.62
Unrealised exchange loss / (gain) (net)		139.55	(131.29)
Change in foreign currency translation reserve Exchange (gain) / loss on derivative contracts		(42.32) (169.80)	119.30 58.51
Exchange loss / (gain) on translation of foreign		11.50	(46.77)
currency cash and cash equivalents
Bad debts		90.30
Provision for expected credit loss (net)		31.32	83 86
Employee stock compensation expenses		290.44	236.79
Provision for doubtful deposits and advances Impairment of loan		23.96	248.48
Provision for diminution in value of investment		18.53
Remeasurements of the defined benefit liabilities / asset (before tax effects)		10.25	(46.14)
Excess provision in respect of earlier years (written back)		(41.79)	(6.95)
Loss / (Gain) on fair valuation of assets designated at FVTPL		131.39	(119.02)
Profit on sale of investments (net)		(478.13)	(164.81)
(Profit) / Loss on sale of Property, plant and equipment (net) Operating profit before working capital changes		(1.34) 7,363.03	5.96 5,925.02
Movements in working capital:
(Increase) / Decrease in non-current and current loans		(40.03)	(14.44)
Increase in other non current assets		(76.81)	(235 30)
Increase in other current financial assets		(104.23)	(232.15)
Decrease / (Increase) in other current assets		58.26	(559.10)
Decrease / (Increase) in trade receivables		58.49	(894.77)
Decrease in trade payables, current liabilities and non current liabilities Increase / (Decrease) in provisions		757.56 924.95	1,000 26 (145.37)
Operating profit after working capital changes		8.941.22	4,844.15
Direct taxes paid (net of refunds)		(1,581.97)	(1,328.27)
Net cash generated from operating activities	(A)	7,359.25	3,515.88
Cash flows from investing activities
Payment towards capital expenditure (including intangible assets) Proceeds from sale of property, plant and equipment		(1, 281.04) 30.02	(758.39) 12.68
Acquisition of step-down subsidiary including cash and cash equivalents of		(448.47)	(435.48)
₹ 30.90 million (Previous year: ₹ 37.35 million)
Purchase of bonds		(712.18)	(901.61)
Proceeds from sale/ maturity of bonds		350.53	819.87
Proceeds from sale of non-current investments			25.22
Investments in mutual funds Proceeds from sale / maturity of mutual funds		(24, 591.91) 25,068 92	(19, 456.95) 17,670 49
(Investments) / maturity of bank deposits having original maturity over		(4, 198.89)	2,108.15
three months
Maturity of deposits with financial institutions			250.00
Interest received		366.29	503.60
Dividends received			13.98
Net cash (used in) investing activities Cash flows from financing activities (used in)	(B)	(5,416.73)	(148.44)
Repayment of long term borrowings		(4.54)	(4.62)
Payment of lease liabilities		(319.11)	(287.70)
Shares bought back			(1,677.01)
Loan received as a part of COVID-19 relief measures			39.14
Specific project related grant received		9.00	3.00
Interest paid Dividends paid		(58.01) (1,069.95)	(63.31) (1, 146.38)
Tax on dividend paid			(154.14)
Net cash (used in) financing activities	(C)	(1, 442.61)	(3, 291.02)
Net in cash and cash equivalents $(A + B + C)$		499.91	76.42
Cash and cash equivalents at the beginning of the year		1,899.99	1,739 45
Cash and cash equivalents acquired on acquisition		30.90	37.35
Effect of exchange difference on translation of foreign		(11.50)	46.77
currency cash and cash equivalents
Cash and cash equivalents at the end of the year		2,419.30	1,899 99
Components of cash and cash equivalents
Cash on hand		0.41	0.24
Balances with banks
On current accounts # On saving accounts		1,583.20	1,566.06 0.36
On Exchange Earner's Foreign Currency accounts		1.33 208.57	261 86
On deposit accounts with original maturity less than three months		625.79	71.47
Net Increase in Cash and cash equivalents		2,419.30	1,899 99

Particulars	March 31, 2021 (Audited)	Dec 31, 2020 (Audited)	March 31, 2020 (Audited)	March 31, 2021 (Audited)	March 31, 2020 (Audited)
Revenue from operations (net)	6.846 58	6.426 34	5.661.39	24.796.08	21,081.22
Profit before tax	1,900.96	1.609.47	864.21 ،ن	6,680.20	5,329.06
Profit after tax	1.400 72	1.259.03	1.274 82	5,050 86	4,077.23

						.
Sr.			Quarter ended		Year ended
No.	Particulars	March 31, 2021 (Audited)	Dec 31, 2020 (Audited)	March 31, 2020 (Audited)	March 31, 2021 (Audited)	March 31, 2020 (Audited)
1	Segment revenue
	- BFSI	3,328.54	3,158.04	2,888.34	12,857.05	10,506.77
	- Healthcare & Life Sciences	2,150.23	2.054.64	1,776.78	8,104.24	6,719.15
	- Technology Companies and Emerging	5,654.81	5,541.30	4,598.53	20,917.59	18,432.16
	Verticals
	Total	11,133.58	10,753.98	9,263.65	41,878.88	35,658.08
2	Less: Inter segment revenue
3	Net sales/income from operations	11,133.58	10,753.98	9,263.65	41,878.88	35,658.08
4	Segment results i e. profit/ (loss) before tax,
	interest and depreciation and amortization
	- BFSI	1,251.66	1,360.54	1.048.84	4,818 38	3,598.15
	- Healthcare & Life Sciences	1,046.96	1,108.67	785 74	3,982.47	2,900.18
	- Technology Companies and	1,622.56	1,484.09	1,571.64	6,449 40	6,418.19
	Emerging Verticals
	Total	3,921.18	3,953.30	3,406.22	15,250 25	12,916.52
5	Less:
	- Finance costs	1583	13.75	11.68	57.94	63.32
	- Other un-allocable expenses	2,456.93	2,589.56	2,557.31	10,175.60	9,653.55
6	Un-allocable income	400 36	300 12	293 20	1,077.72	1,323.77
7	Profit before tax	1,848.78	1,650.10	1,130.43	6,094.43	4,523.42

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

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

To the Board of Directors of Persistent Systems Limited

Opinion

• 1. Systems Limited and its subsidiaries (the Holding Company and its subsidiaries being submitted by the Holding Company pursuant to the requirements of Regulation 33 of the SEBI including relevant circulars issued by the SEBI from time to time.
• 1. In our opinion and to the best of our information and according to the explanations given to us and based on the consideration of the reports of other auditors on separate audited financial statements of the subsidiaries as referred to in paragraph 12 below, the Statement:
• (i) includes the annual financial results of the entities listed in Annexure 1;
• (ii) presents financial results in accordance with the requirements of Regulation 33 of the Listing Regulations and
• (iii) thereunder, and other accounting principles generally accepted in India, of the consolidated net profit after tax and other comprehensive income and other financial information of the Group and its associates, for the year ended 31 March 2021.

Basis for Opinion

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

Page 1 of 5

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

Chartered Accountants

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

Responsibilities of Management and Those Charged with Governance for the Statement

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

it of the Statement

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

Page 2 of 5

Chartered Accountants

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

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

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the management.
• based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of the Group and its associates, to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our o modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our to continue as a going concern.
• Evaluate the overall presentation, structure and content of the Statement, including the disclosures, and whether the Statement represents the underlying transactions and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial statements of the entities within the Group, and its associates, to express an opinion on the Statement. We are responsible for the direction, supervision and performance of the audit of financial information of such entities included in the Statement, of which we are the independent auditors. For the other entities included in the Statement, which have been audited by the other auditors, such other auditors remain responsible for the direction, supervision and performance of the audits carried out by them. We remain solely responsible for our audit opinion.
• 1. We communicate with those charged with governance of the Holding Company and such other entities included in the Statement, of which we are the independent auditors, regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
• 1. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
• 1. We also performed procedures in accordance with SEBI Circular CIR/CFD/CMD1/44/2019 dated 29 March 2019, issued by the SEBI under Regulation 33 (8) of the Listing Regulations, to the extent applicable.

Other Matter(s)

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

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

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

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

Chartered Accountants

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

1. statements, which have not been audited by their auditors. These financial statements have been furnished to included in respect of aforesaid associates, is based solely on such unaudited financial statements. In our opinion, and according to the information and explanations given to us by the management, these financial statements.

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

1. The Statement includes the consolidated financial results for the quarter ended 31 March 2021, 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 Registration No:001076N/N500013

Shashi Tadwalkar Partner Membership No:101797

UDIN:21101797AAAAAU3480

Place: Pune Date: 29 April 2021

Page 4 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

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

Annexure 1

List of entities included in the Statement

Sr. No.	Name of Entity	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	Valista Limited (VL) (Dissolved w.e.f. 24 June 2020)	Wholly owned subsidiary of AGL
9	Aepona Group Limited (AGL)	Wholly owned subsidiary of PSI
10	Aepona Limited	Wholly owned subsidiary of AGL
11	Youperience GmbH (YGmbH)	Wholly owned subsidiary of PSGG
12	Youperience Limited	Wholly owned subsidiary of YGmbH
13	Persistent Systems Lanka (Private) Limited	Wholly owned subsidiary of AGL
14	Persistent Systems Mexico, S.A. de C.V.	Wholly owned subsidiary of PSI
15	Persistent Systems Israel Ltd	Wholly owned subsidiary of PSI
16	PARX Werk AG	Wholly owned subsidiary of PSGG
17	PARX Consulting GmbH	Wholly owned subsidiary of PARX Werk AG
18	Capiot Software Private Limited (Acquired w.e.f. October 29, 2020)	Wholly owned subsidiary of PSL
19	Capiot Software Inc. (Capiot US) (Acquired w.e.f. November 7, 2020)	Wholly owned subsidiary of PSI
20	Capiot Software Pty Limited (Acquired w.e.f. November 7, 2020)	Wholly owned subsidiary of Capiot US
21	Capiot Software Pte Limited (Acquired w.e.f. November 7, 2020)	Wholly owned subsidiary of Capiot US
22	Persistent Systems SRL (incorporated on March 23, 2021)	Wholly owned subsidiary of PSI
23	Klisma e-Services Private Limited	Associate Company of PSL

This space has been intentionally left blank

Page 5 of 5

Audited consolidated financial results of Persistent Systems Limited for the quarter and year ended March 31, 2021

	Audited consolidated financial results of Persistent Systems Limited for the quarter and year ended March 31, 2021
Sr.						in Million Year ended
Particulars No.			March 31, 2021	Quarter ended December 31, March 31, 2020 March 31, 2021			March 31, 2020
			(Audited)	2020 (Audited)	(Audited)	(Audited)	(Audited)
	Income
1 2	Revenue from operations (net) Other income		11,133.58 400.36	10,753.98 300.12	9,263.65 293.20	41,878.88 1,077.72	35,658.08 1,323.77
3 4	Total income Expenses	(1+2)	11,533.94	11,054.10	9,556.85	42,956.60	36,981.85
	- Employee benefits expense		6,853.90	6,422.18	5,675.97	25,157.99	21,556.40
	- Cost of professionals - Finance costs		1,543.13 15.83	1,318.68 13.75	1,163.23 11.68	5,563.68 57.94	3,918.94 63.32
	- Depreciation and amortization expense		419.05	461.05	419.80	1,755.50	1,659.62
	- Other expenses Total Expenses		853.25 9,685.16	1,188.34 9,404.00	1,155.74 8,426.42	4,327.06 36,862.17	5,260.15 32,458.43
5	Profit before exceptional items and tax	(3-4)	1,848.78	1,650.10	1,130.43	6,094.43	4,523.42
6 7	Exceptional items Profit before tax	(5-6)	- 1,848.78	- 1,650.10	- 1,130.43	- 6,094.43	- 4,523.42
8	Tax expense
	- Current tax - Tax charge / (credit) in respect of earlier		495.67 3.68	411.41 (0.53)	366.06 6.58	1,774.01 10.58	1,354.70 52.55
	- Deferred tax charge / (credit)		(28.16)	29.98	(80.42)	(196.93)	(286.72)
9	Total tax expense Profit for the period / year	(7-8)	471.19 1,377.59	440.86 1,209.24	292.22 838.21	1,587.66 4,506.77	1,120.53 3,402.89
10	Other comprehensive income
	A. Items that will not be reclassified to profit and loss
	- Remeasurements of the defined benefit		24.52	(32.22)	2.37	10.25	(34.80)
	liabilities / assets (net of tax)		24.52	(32.22)	2.37	10.25	(34.80)
	B. Items that may be reclassified to profit and
	loss - Effective portion of cash flow hedge (net of		(53.45)	96.00	(250.14)	383.54	(429.15)
	tax)
	- Exchange differences in translating the financial statements of foreign operations		120.35	314.59	369.96	(20.07)	323.15
			66.90	410.59	119.82	363.47	(106.00)
	Total other comprehensive income for the	(A+B)	91.42	378.37	122.19	373.72	(140.80)
11	period / year Total comprehensive income for the period /	(9+10)	1,469.01	1,587.61	960.40	4,880.49	3,262.09
	year (Comprising Profit / (Loss) and Other
12	Comprehensive Income for the period / year) Paid-up equity share capital		764.25	764.25	764.25	764.25	764.25
	(Face value of share 10 each)
13 14	Other equity excluding revaluation reserves Earnings per equity share in (Face value of						23,093.30
	share 10 each)
	- Basic - Diluted		18.03 18.03	15.82 15.82	10.97 10.97	58.97 58.97	44.38 44.38
15	Dividend per share (in ) (Nominal value per
	share 10)
	Interim dividend Final dividend		- 6.00	14.00 -	3.00 -	14.00 6.00	12.00 -
	Total dividend		6.00	14.00	3.00	20.00	12.00

Audited consolidated statement of assets and liabilities

	in Million
Particulars	As at	As at
	March 31, 2021	March 31, 2020
	(Audited)	(Audited)
ASSETS
Non-current assets
Property, Plant and Equipment	2,401.40	2,224.60
Capital work-in-progress	121.81	166.18
Right- of- use assets	852.58	566.81
Goodwill	85.94	88.94
Other Intangible assets	1,229.50	1,434.93
Intangible assets under development	-	137.20
Financial assets
- Investments	3,621.27	4,620.97
- Loans	134.76	176.13
-Other non-current financial assets	25.76	358.93
Deferred tax assets (net)	1,037.57	960.08
Other non-current assets	441.52	331.31
Total non-current assets	9,952.11	11,066.08
Current assets
Financial assets
- Investments	6,374.95	5,164.77
- Trade receivables (net)	5,708.97	5,921.96
- Cash and cash equivalents	2,419.30	1,899.99
- Other bank balances	7,389.70	2,672.19
- Loans	71.26	13.71
- Other current financial assets	2,467.23	2,068.54
Current tax assets (net)	188.00	163.93
Other current assets	2,083.72	1,950.52
Total current assets	26,703.13	19,855.61
TOTAL ASSETS	36,655.24	30,921.69
EQUITY AND LIABILITIES
Equity
Equity share capital	764.25	764.25
Other equity	27,192.41	23,093.30
Total Equity	27,956.66	23,857.55
Liabilities
Non- current liabilities
Financial liabilities
- Lease liabilities	716.17	353.36
- Borrowings	44.27	46.22
Provisions	240.94	182.79
Total Non- current liabilities	1,001.38	582.37
Current liabilities
Financial liabilities
- Lease liabilities	222.00	309.06
- Trade payables	2,733.44	2,247.09
- Other financial liabilities	390.17	862.34
Other current liabilities	1,514.95	1,320.13
Provisions	2,477.79	1,610.99
Current tax liabilities (net)	358.85	132.16
	7,697.20	6,481.77
Total current liabilities
TOTAL EQUITY AND LIABILITIES	36,655.24	30,921.69

	Audited unconsolidated financial information
Particulars		Quarter ended			Year ended
	March 31, 2021 (Audited)	December 31, 2020 (Audited)	March 31, 2020 (Audited)	March 31, 2021 (Audited)	in Million March 31, 2020 (Audited)
Revenue from operations (net)	6,846.58	6,426.34	5,661.39	24,796.08	21,081.22
Profit before tax	1,900.96	1,609.47	1,664.21	6,680.20	5,329.06

Segment wise Revenue, Results and Capital Employed

	Revenue from operations (net)	6,846.58	6,426.34	5,661.39	24,796.08	21,081.22
	Profit before tax	1,900.96	1,609.47	1,664.21	6,680.20	5,329.06
	Profit after tax	1,400.72	1,259.03	1,274.82	5,050.86	4,077.23
	Segment wise Revenue, Results and Capital Employed
	Considering the focus on industry verticals, the Group has decided to reorganize its operating segments from April 1, 2020. The figures for the corresponding periods / year have been appropriately reclassified in line with the current period's / year's classification.
	a. Banking, Financial Services and Insurance (BFSI)
	b. Healthcare & Life Sciences
	c. Technology Companies and Emerging Verticals
						in Million
Sr.	Particulars		Quarter ended		Year ended
No.		March 31, 2021	December 31,	March 31, 2020	March 31, 2021	March 31, 2020
		(Audited)	2020 (Audited)	(Audited)	(Audited)	(Audited)
1	Segment revenue
	- BFSI	3,328.54	3,158.04	2,888.34	12,857.05	10,506.77
	- Healthcare & Life Sciences	2,150.23	2,054.64	1,776.78	8,104.24	6,719.15
	- Technology Companies and Emerging Verticals	5,654.81	5,541.30	4,598.53	20,917.59	18,432.16
	Total	11,133.58	10,753.98	9,263.65	41,878.88	35,658.08
2	Less: Inter segment revenue	-	-	-	-	-
3	Net sales/income from operations	11,133.58	10,753.98	9,263.65	41,878.88	35,658.08
4	Segment results i.e. profit/ (loss) before tax,
	interest and depreciation and amortization
	- BFSI	1,251.66	1,360.54	1,048.84	4,818.38	3,598.15
	- Healthcare & Life Sciences	1,046.96	1,108.67	785.74	3,982.47	2,900.18
	- Technology Companies and	1,622.56	1,484.09	1,571.64	6,449.40	6,418.19
	Total	3,921.18	3,953.30	3,406.22	15,250.25	12,916.52
5	Less:
	- Finance costs	15.83	13.75	11.68	57.94	63.32
	- Other un-allocable expenses	2,456.93	2,589.57	2,557.31	10,175.60	9,653.55
6	Un-allocable income	400.36	300.12	293.20	1,077.72	1,323.77
7	Profit before tax	1,848.78	1,650.10	1,130.43	6,094.43	4,523.42
8	Segment assets
						As on
					March 31, 2021	March 31, 2020
					(Audited)	(Audited)
	- BFSI				1,950.45	2,227.74
	- Healthcare & Life Sciences				1,525.69	1,614.60
	- Technology Companies and Emerging Verticals				4,405.60	4,148.16
	Total allocable segment assets				7,881.74	7,990.50
					28,773.50 36,655.24	22,931.19 30,921.69
	Unallocable assets Total assets

8	Segment assets
			As on
		March 31, 2021 (Audited)	March 31, 2020 (Audited)
	- BFSI	1,950.45	2,227.74
	- Healthcare & Life Sciences	1,525.69	1,614.60
	- Technology Companies and Emerging Verticals	4,405.60	4,148.16
	Unallocable assets	28,773.50	22,931.19

Note for segment wise information:

Segment wise capital employed

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 and liabilities are used interchangeably among segments and the Group is of the view that it is not practical to reasonably allocate the other assets, liabilities and other non-cash expenses to individual segments and an ad-hoc allocation will not be meaningful.

Notes:

• 1 The audited condensed consolidated financial statements for the quarter and year ended March 31, 2021, have been approved by the Board of Directors at its meeting held on April 29, 2021, and as recommended by the Audit Committee at its meeting held on April 28, 2021. The statutory auditors have expressed an unqualified audit opinion. The information presented above is extracted from the audited condensed consolidated financial statements. The Board of Directors at its meeting held in January 2021 had approved payment of Interim Dividend of 14 per Equity Share of 10 each for FY 2020- 21. Accordingly, during February 2021, 985,238,750 (after Tax Deducted at Source) were paid towards the above Dividend and 84,711,250 towards Tax
• 2 Deducted at Source.
• 3 Dividend is subject to the approval of Members at the ensuing 31st Annual General Meeting which will be held on or before September 30, 2021.
• 4 Persistent Systems Inc., USA, the wholly owned subsidiary of the Company formed Persistent Systems S.r.l., Italy on March 23, 2021.
• 5 April 29, 2021 Chairman and Managing Director The Board of Directors at its meeting held on April 29, 2021, recommended Final Dividend of 6 per share for the Financial Year 2020-21. This Final The Group has considered the possible effects that may result from COVID-19 in the preparation of these condensed consolidated financial statements including the recoverability of carrying amounts of financial and non financial assets. In developing the assumptions relating to the possible future uncertainties in the global economic conditions because of COVID-19, the Group has, at the date of approval of these condensed consolidated financial statements, used internal and external sources of information including internal credit evaluation report and related information and economic forecasts and expects that the carrying amount of these assets will be recovered. The impact of COVID-19 on the Group's condensed interim consolidated financial statements may differ from that estimated as at the date of approval of these condensed consolidated financial statements. The code on Social security, 2020 (applicable to Companies incorpoarated in India) relating to employee benefits has been approved by the Parliament and has also been published in Official Gazette of India. However, the date on which it comes into effect has not been notified and the rules are yet to be framed. Group will complete its evaluation and will give appropriate impact in its financial results in the period in which, the Code becomes effective
• 6 and the related rules are published.
• 7 The investors are requested to visit the following website of the Company and Stock Exchanges for further details:

By order of Board of Directors of Persistent Systems Limited

Pune Dr. Anand Deshpande

Persistent Systems Limited CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2021
		For the year ended March 31, 2021	March 31, 2020
Cash flow from operating activities Profit before tax		6,094.43	4,523.42
Adjustments for:
Interest income Finance costs		(558.70) 57.94	(545.28) 63.32
Dividend income		-	(13.98)
Depreciation and amortization expense		1,755.50	1,659.62
Unrealised exchange loss / (gain) (net)		139.55	(131.29)
Change in foreign currency translation reserve Exchange (gain) / loss on derivative contracts		(42.32) (169.80)	119.30 58.51
Exchange loss / (gain) on translation of foreign currency cash and cash equivalents		11.50	(46.77)
Bad debts		90.30	-
Provision for expected credit loss Employee stock compensation expenses		31.32 290.44	83.86 236.79
Provision for doubtful deposits and advances		-	248.48
Impairment of loan		23.96	-
Provision for diminution in value of investments Remeasurements of the defined benefit liabilities / asset (before tax effects)		18.53 10.25	- (46.14)
Excess provision in respect of earlier periods / years (written back)		(41.79)	(6.95)
Loss / (Gain) on fair valuation of assets designated at FVTPL		131.39	(119.02)
Profit on sale of investments (net)		(478.13)	(164.81)
(Profit) / Loss on sale of Property, plant and equipment (net) Operating profit before working capital changes		(1.34) 7,363.03	5.96 5,925.02
Movements in working capital :
(Increase) / Decrease in non-current and current loans		(40.03)	(14.44)
Increase in other non current assets		(76.81)	(235.30)
Increase in other current financial assets Decrease / (Increase) in other current assets		(104.23) 58.26	(232.15) (559.10)
Decrease / (Increase) in trade receivables		58.49	(894.77)
Decrease in trade payables, current liabilities and non current liabilities		757.56	1,000.26
Increase / (Decrease) in provisions		924.95	(145.37)
Operating profit after working capital changes Direct taxes paid (net of refunds)		8,941.22 (1,581.97)	4,844.15 (1,328.27)
Net cash generated from operating activities	(A)	7,359.25	3,515.88
Cash flows from investing activities
Payment towards capital expenditure (including intangible assets) Proceeds from sale of property, plant and equipment		(1,281.04) 30.02	(758.39) 12.68
		(448.47)	(435.48)
Purchase of bonds Proceeds from sale/ maturity of bonds		(712.18) 350.53	(901.61) 819.87
Proceeds from sale of non-current investments		-	25.22
Investments in mutual funds		(24,591.91)	(19,456.95)
Proceeds from sale / maturity of mutual funds (Investments) / maturity of bank deposits having original maturity over three months		25,068.92 (4,198.89)	17,670.49 2,108.15
Maturity of deposits with financial institutions		-	250.00
Interest received		366.29	503.60
Dividends received		-	13.98
Net cash (used in)/ generated from investing activities	(B)	(5,416.73)	(148.44)
Cash flows from financing activities
Repayment of long term borrowings		(4.54)	(4.62)
Payment of lease liabilities Shares bought back		(319.11) -	(287.70) (1,677.01)
Loan received as a part of COVID-19 relief measures		-	39.14
Specific project related grant received		9.00	3.00
Interest paid		(58.01)	(63.31)
Dividends paid		(1,069.95)	(1,146.38)
Tax on dividend paid	(C )	- (1,442.61)	(154.14)
Net cash (used in) financing activities			(3,291.02)

Persistent Systems Limited
CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2021
	For the year ended
	March 31, 2021	March 31, 2020
Net (decrease) / increase in cash and cash equivalents (A + B + C)	499.91	76.42
Cash and cash equivalents at the beginning of the year	1,899.99	1,739.45
Cash and cash equivalents acquired on acquisition	30.90	37.35
Effect of exchange difference on translation of foreign	(11.50)	46.77
currency cash and cash equivalents
Cash and cash equivalents at the end of the year	2,419.30	1,899.99
Components of cash and cash equivalents
	0.41	0.24
Cash on hand
Balances with banks
On current accounts #	1,583.20	1,566.06
On saving accounts	1.33	0.36
On Exchange Earner's Foreign Currency accounts	208.57	261.86
On deposit accounts with original maturity less than three months Cash and cash equivalents	625.79 2,419.30	71.47 1,899.99

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

Unconsolidated Annual Financial Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended)

To the Board of Directors of Persistent Systems Limited

Opinion

• 1. We have audited the accompanying unconsolidated annual Persistent Systems Limited for the year ended 31 March 2021, attached herewith, being submitted by the Company pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended , including relevant circulars issued by the SEBI from time to time.
• 1. In our opinion and to the best of our information and according to the explanations given to us, the Statement:
• (i) presents financial results in accordance with the requirements of Regulation 33 of the Listing Regulations, and
• (ii) gives a true and fair view in conformity with the prescribed under Section 133 of the Companies Act read with relevant rules issued thereunder, and other accounting principles generally accepted in India, of the unconsolidated net profit after tax and other comprehensive income and other financial information of the Company for the year ended 31 March 2021

Basis for Opinion

1. 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 Responsibilities for the Audit of the Statement 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 the financial statements under the provisions of the Act and the rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence obtained by us, is sufficient and appropriate to provide a basis for our opinion.

Page 1 of 3

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

Chartered Accountants

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

Persistent Systems Limited Unconsolidated Annual Financial Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended)

Responsibilities of Management and Those Charged with Governance for the Statement

• 1. This Statement has been prepared on the basis of the standalone annual audited financial statements and has been approved by the Company's Board of Directors Directors is responsible for the preparation and presentation of the Statement that gives a true and fair view of the net profit/loss and other comprehensive income and other financial information of the Company in accordance with the accounting principles generally accepted in India, including Ind AS prescribed under Section 133 of the Act, read with relevant rules issued thereunder and other accounting principles generally accepted in India, and in compliance with Regulation 33 of the Listing Regulations. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Statement that gives a true and fair view and is free from material misstatement, whether due to fraud or error.
• 1. In preparing the Statement, the Board of Directors is 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. The Board of Directors is
• 1. Our objectives are to obtain reasonable assurance about whether the Statement as a whole is free 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, specified under section 143(10) of the Act, will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this Statement.
• 1. As part of an audit in accordance with the Standards on Auditing, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the Statement, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• 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 in place adequate internal financial controls with reference to financial statements and the operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the management.

Page 2 of 3

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

Chartered Accountants

Persistent Systems Limited Unconsolidated Annual Financial Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended)

• Conclude on the appropriateness of the management s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists continue as a going concern. If we conclude that a material uncertainty exists, we are required e related disclosures in the Statement or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit may cause the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the Statement, including the disclosures, and whether the Statement represents 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.

Other Matter

1. The Statement includes the financial results for the quarter ended 31 March 2021, being the balancing figures between the audited figures in respect of the full financial year and the published audited year-to-date 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 Registration No:001076N/N500013

Shashi Tadwalkar Partner Membership No:101797

UDIN:21101797AAAAAT8357

Place: Pune Date: 29 April 2021

Page 3 of 3

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

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

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

Audited unconsolidated financial results of Persistent Systems Limited for the quarter and year ended March 31, 2021

							(In Million)
Sr. No.	Particulars		Quarter ended	Year ended
			March 31, 2021 (Audited)	December 31, 2020 (Audited)	March 31, 2020 (Audited)	March 31, 2021 (Audited)	March 31, 2020 (Audited)
	Income
1	Revenue from operations (net)		6,846.58	6,426.34	5,661.39	24,796.08	21,081.22
2	Other income		349.75	325.43	323.32	1,176.16	1,599.04
3	Total income	(1+2)	7,196.33	6,751.77	5,984.71	25,972.24	22,680.26
4	Expenses
	- Employee benefits expense		4,071.22	3,699.64	2,944.26	14,093.21	11,029.06
	- Cost of professionals		464.79	448.82	394.63	1,775.07	1,825.37
	- Finance costs		11.21	8.41	9.71	38.21	44.51
	- Depreciation and amortization expense		155.52	140.40	136.46	566.79	555.12
	- Other expenses		592.63	845.03	835.44	2,818.76	3,897.14
	Total Expenses		5,295.37	5,142.30	4,320.50	19,292.04	17,351.20
5	Profit before exceptional items and tax	(3-4)	1,900.96	1,609.47	1,664.21	6,680.20	5,329.06
6	Exceptional items		-	-	-	-	-
7	Profit before tax	(5-6)	1,900.96	1,609.47	1,664.21	6,680.20	5,329.06
8	Tax expense
	- Current tax		468.18	375.82	372.31	1,684.00	1,297.91
	- Tax charge / (credit) in respect of earlier years		-	-	-	2.74	(1.60)
	- Deferred tax charge / (credit)		32.06	(25.38)	17.08	(57.40)	(44.48)
	Total tax expense		500.24	350.44	389.39	1,629.34	1,251.83
9	Profit for the period / year	(7-8)	1,400.72	1,259.03	1,274.82	5,050.86	4,077.23
10	Other comprehensive income
	A. Items that will not be reclassified to profit and loss
	- Remeasurements of the defined benefit asset / liabilities		24.56	(32.89)	3.09	15.93	(30.46)
	(net of tax)
			24.56	(32.89)	3.09	15.93	(30.46)
	B. Items that may be reclassified to profit and loss
	- Effective portion of cash flow hedge (net of tax)		(53.44)	96.00	(250.14)	383.55	(429.15)
			(53.44)	96.00	(250.14)	383.55	(429.15)
	Total other comprehensive income for the period / year	(A+B)	(28.88)	63.11	(247.05)	399.48	(459.61)
11	Total comprehensive income for the period / year (Comprising Profit (Loss) and Other Comprehensive	(9+10)	1,371.84	1,322.14	1,027.77	5,450.34	3,617.62
	Income for the period)
12	Paid-up equity share capital (Face value of share 10 each)		764.25	764.25	764.25	764.25	764.25
13	Other equity excluding revaluation reserves						22,221.13
14	Earnings per equity share in (Face value of share 10
	each)
	- Basic		18.33	16.47	16.68	66.09	53.17
	- Diluted		18.33	16.47	16.68	66.09	53.17
15	Dividend per share (in ) (Nominal value of share 10
	each)
	Interim dividend		-	14.00	3.00	14.00	12.00
	Final dividend		6.00	-	-	6.00	-
	Total dividend		6.00	14.00	3.00	20.00	12.00

Audited statement of assets and liabilities

Particulars As on March 31, As on March 31, 2021 (Audited) 2020 (Audited) ASSETS Non-current assets Property, Plant and Equipment 2,270.24 2,048.77 Capital work-in-progress 112.33 48.27 Right of Use assets 314.62 269.40 Other Intangible assets 171.65 46.97 Intangible assets under development - 137.20 Financial assets - Investments 7,779.54 8,379.86 - Loans 52.23 123.57 -Other non-current financial assets 25.76 358.93 Deferred tax assets (net) 245.74 317.35 Other non-current assets 419.73 329.39 11,391.84 12,059.71 Total non-current assets Current assets Financial assets - Investments 6,374.95 - Trade receivables (net) 2,966.26 - Cash and cash equivalents 862.72 - Other bank balances 7,387.00 - Loans 49.33 - Other current financial assets 2,063.79 Other current assets 1,656.93 21,360.98 Total current assets 32,752.82 TOTAL ASSETS EQUITY AND LIABILITIES Equity Equity share capital 764.25 Other equity 26,890.99 27,655.24 Total Equity Liabilities Non- current liabilities Financial liabilities - Lease liabilities 304.72 191.26 - Borrowings 5.54 Provisions 240.94 182.79 Total Non- current liabilities 551.20 Current liabilities Financial liabilities - Lease liabilities 73.82 165.38 - Trade payables 938.40 972.49 - Other financial liabilities 397.42 549.73 Other current liabilities 1,679.01 851.02 Provisions 1,145.59 590.38 Current tax liabilities (net) 312.14 120.21 4,546.38 3,249.21 Total current liabilities TOTAL EQUITY AND LIABILITIES 32,752.82 26,615.72	(In Million)
			5,164.77
			2,883.09
			532.63
			2,405.32
			4.76
			2,080.07
			1,485.37
			14,556.01
			26,615.72
			764.25
			22,221.13
			22,985.38
			7.08
			381.13

Notes:

• 1 The audited condensed unconsolidated financial statements for the quarter and year ended March 31, 2021, have been taken on record by the Board of Directors at its meeting held on April 29, 2021 as recommended by the Audit Committee at its meeting held on April 28, 2021. The statutory auditors have expressed an unqualified audit opinion. The information presented above is extracted from the audited interim condensed unconsolidated financial statements.
• 2 The Board pf Directors at its meeting held in January 2021 had approved payment of Interim Dividend of 14 per Equity Share of 10 each for FY 2020-21. Accordingly, during February 2021, 985,238,750 (after Tax Deducted at Source) were paid towards the above Dividend and 84,711,250 towards Tax Deducted at Source.
• 3 The Board of Directors at its meeting held on April 29, 2021, recommended Final Dividend of 6 per share for the Financial Year 2020-21. This Final Dividend is subject to the approval of Members at the ensuing 31st Annual General Meeting which will be held on or before September 30, 2021.
• 4 The code on Social security, 2020 relating to employee benefits has been approved by the Parliament and has also been published in Official Gazette of India. However, the date on which it comes into effect has not been notified and the rules are yet to be framed. The Company will complete its evaluation and will give appropriate impact in its financial results in the period in which, the Code becomes effective and the related rules are published.
• 5 The Company has considered the possible effects that may result from COVID-19 in the preparation of these condensed interim unconsolidated financial statements including the recoverability of carrying amounts of financial and non financial assets. In developing the assumptions relating to the possible future uncertainties in the global economic conditions because of COVID-19, the Company has, at the date of approval of these condensed interim financial statements, used internal and external sources of information including internal credit evaluation report and related information and economic forecasts and expects that the carrying amount of these assets will be recovered. The impact of COVID-19 on the Company's condensed interim unconsolidated financial statements may differ from that estimated as at the date of approval of these condensed interim unconsolidated financial statements.
• 6 In accordance with para 4 of Notified Indian Accounting Standard 108 (Ind AS-108) the Company has disclosed segment information only on the basis of consolidated financial results.
• 7 The investors are requested to visit the following website of the Company and Stock Exchanges for further details:

By order of Board of Directors of Persistent Systems Limited

Pune Dr. Anand Deshpande Date : April 29, 2021 Chairman and Managing Director

			For the year ended
		March 31, 2021	March 31, 2020
Cash flows from operating activities
Profit before tax		6,680.20	5,329.06
Adjustments for:
Interest income		(548.82)	(525.76)
Finance cost		38.21	44.51
Dividend income		(131.45)	(410.72)
Depreciation and amortization expense		566.79	555.12
Unrealised exchange (gain) / loss (net)		151.02	(128.86)
Exchange (gain) / loss on derivative contracts		(169.80)	58.51
Exchange (gain) / loss on translation of foreign currency cash and cash equivalents		23.15	(46.82)
Bad debts		46.96	-
Provision for expected credit loss (net) Provision for doubtful deposits		(20.20) -	47.31 248.48
Employee stock compensation expenses		236.33	60.01
Remeasurements of the defined benefit liabilities / asset (before tax effects)		15.93	(41.80)
(Gain) / loss on fair valuation of mutual funds		133.70	(119.02)
(Profit) on sale of investments (net)		(478.13)	(164.81)
(Profit) on sale of Property, Plant and Equipment (net)		8.10	-
Operating profit before working capital changes		6,551.99	4,905.21
Movements in working capital :
Decrease / (Increase) in non-current and current loans		37.02	(5.29)
Increase In other non current assets		(78.73)	(261.04)
Decrease / (Increase) in other current financial assets		363.88	(246.75)
Increase in other current assets		(171.56)	(241.93)
Increase in trade receivables		(312.65)	(373.81)
Increase in trade payables, current liabilities and non current liabilities		1,059.46	253.67
Increase / (Decrease) in provisions		613.36	(49.40)
Operating profit after working capital changes		8,062.77	3,980.66
Direct taxes paid (net of refunds)		(1,494.81)	(1,217.69)
Net cash generated from operating activities	(A)	6,567.96	2,762.97
Cash flows from investing activities
Payment towards capital expenditure (including intangible assets)		(707.24)	(483.57)
Proceeds from sale of Property, Plant and Equipment		4.13	4.08
Investment in wholly owned subsidiaries		(376.61)	(474.00)
Purchase of bonds		(712.18)	(901.61)
Proceeds from sale of bonds		350.53	819.87
Investments in mutual funds		(24,591.91)	(19,456.95)
Proceeds from sale / maturity of mutual funds		25,068.92	17,670.49
(Investments)/ maturity in bank deposits having original maturity over three months		(4,464.82)	2,044.25
Maturity of deposit with financial institutions		-	250.00
Interest received		359.89	484.68
Dividend received		131.45	410.72
Net cash (used in) / generated from investing activities	(B)	(4,937.84)	367.96
Cash flows from financing activities
(Repayment of) long term borrowings		(4.54)	(4.62)
Shares bought back		-	(1,677.01)
Specific project related grant received		9.00	3.00
Payment of lease liabilities		(173.11)	(188.37)
Dividend paid		(1,069.95)	(1,144.60)
Tax on dividend paid		-	(154.14)
Interest paid		(38.28)	(44.50)
Net cash (used in) financing activities	(C )	(1,276.88)	(3,210.24)

Persistent Systems Limited CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2021

	For the year ended
	March 31, 2021	March 31, 2020
Net increase/ (decrease) in cash and cash equivalents (A + B + C)	353.24	(79.31)
Cash and cash equivalents at the beginning of the year	532.63	565.12
Effect of exchange differences on translation of foreign currency	(23.15)	46.82
cash and cash equivalents
Cash and cash equivalents at the end of the year	862.72	532.63
Components of cash and cash equivalents
Cash on hand	0.10	0.15
Balances with banks
On current accounts #	360.22	198.79
On saving accounts	1.33	0.36
On deposit account with maturity of less than three months	292.50	71.47
On Exchange Earner's Foreign Currency accounts	208.57	261.86
Cash and cash equivalents	862.72	532.63

Out of the cash and cash equivalent balance as at March 31, 2021, the Company can utilise 154.39 Million (Previous year: 6.62 Million) only towards certain predefined activities specified in the agreement.