Persistent Systems Limited

Twenty-Ninth Annual Report 2018-19

Shaping the future of software driven business

 Venue:
Persistent Systems Limited
Dewang Mehta Auditorium
29th Annual Bhageerath,
General Meeting 402 Senapati Bapat Road,
Pune 411 016, India
Wednesday, July 24, 2019
11:00 AM (IST)
Remote e-Voting Period:
From 12:01 AM (IST) on Sunday, July 21, 2019
till 05:00 PM (IST) on Tuesday, July 23, 2019
Table of Contents

From the Chairman’s Desk 06 Statutory Section

Message from the CEO 08 Message from the CFO 76

Our Journey To Date 10 Report of the Directors 77

Report on Corporate Governance 131

G&S Areas Business Responsibility Report 166
Banking, Financial Services, 12
Management Discussion 178
and Insurance
and Analysis
Healthcare and Life Sciences 16
Report on Risk Management 191
Industrial 20

AI, ML, and Data 24 Consolidated

Financials
Cloud Services 28
Independent Auditors’ Report 194
Identity, Access, and Security 32
Consolidated Financial Statements 200
Software Product Engineering 36
Section 129(3) Statement 259

Message from the Leaders 40

Unconsolidated
Life at Persistent 42 Financials
Overview of Financial 48 Independent Auditors’ Report 262
Performance
Unconsolidated Financial 270
Highlights 49 Statements

Committees of the Board 50

Directors’ Profiles 51

Awards and Recognitions 58

Corporate Social Responsibility 60

Global Presence 70

Corporate Information 74
 Shaping the future of software driven business

Shaping
the future
of software
driven
business

4 • Annual Report 2018-19

 Shaping the future of software driven business

In the midst of a transformation, our customers technology shifts for our customers, whether an
are evolving their business personalities in enterprise customer or a software vendor. We
endless combinations. Every business, Persistent have talked about how every digital business is
Systems being no exception, is constantly a software driven business. And we continue to
exploring ways to act and operate differently build on these ideas to pursue business value
from the past. This ranges from new business opportunities for our customers and thereby,
models, new ways of engaging customers, to for us.
highly simplified and automated ways of getting
work done. Our depth in technology is one of the hallmarks
of our brand with customers depending on us for
As we enter our fiscal year 2020, we continue their most complex needs. We tame technology
to evolve the ideas we have shared in previous complexity for our customers. We are experts in
years. The navigation of value continues, and Data, Cloud, Security, AI, and Analytics. Deep and
the technology shifts have now progressed to strong market partnerships provide Persistent
the point of business differentiation provided by the ability to shape the future of every software
elegant compositions of technology. Through all driven business. For every customer and the
this transformation, global enterprises and the needs of every constituent that matter to that
ISVs of the world continue to use basic building customer, we can design the right cloud services
blocks of technology that has by now moved to and the right business process platforms to
the digital frontier. These building blocks enable accelerate business and project a winning
entire industries to think in new paradigms of how personality of their business. We have deep
their business digitally projects new personalities partnerships and expertise in Microsoft, Amazon,
to all their constituents. Google, and IBM clouds and recognized depth
in business process platforms from Salesforce,
In today’s world, one must continuously think Appian, OutSystems, Dassault, and IBM.
about business value. Business value must be
projected through a personality or face that Lastly, as we have brought these pieces together,
any business projects to its constituents and Persistent has become a model for key industries
in the software mind inside that drives the we serve, on how to maximize our customer’s
business. Inwardly, whether enterprise or ISV, it business gains. In recent years, our capabilities
is a relentless push towards proper assembly of of value have enabled us to have a seat at the
the right capabilities. This creates that desired business design tables with customers in the
business personality in the market with business Banking, Insurance, Healthcare, Life Sciences,
adaptability as a key attribute using platforms, and Industrial Sectors. We remain committed and
clouds, and standards. Our customers demand capable of delivering value to these companies
flexibility in and from their technology. The usage and help them build resilient technology-driven
of established platforms provides agility and business models.
market projection, along with the dynamic ability
to change their personality by customer type, Our exclusive focus on shaping new faces or
demographics and changing market demands. projecting new personalities is an advantage for
us, free of the baggage or legacy of outdated
At Persistent, we are always bringing this all ways of doing business. This will distinguish us
together for our customers. We believe that favorably with customers and as a business that
such transformations are continuous by design is shaping the future of software driven business
as much as the importance of navigating in each of these industry markets.

Shaping the future of software driven business • 5

From the can respond decisively amid rapidly changing
conditions. By setting up systems that are software

Chairman’s Desk driven, businesses get the opportunity to present

different personalities by simply reprogramming
the components that hold the business together.
Software systems use agile processes and are
built and deployed iteratively and incrementally.
Dear Valued Shareowners,
Incumbents are investing in infrastructure to
It is my pleasure to share with you our 29th Annual facilitate the integration of large volumes of
Report for the financial year 2018-19. Growth this existing data to intelligently drive actionable
year has been challenging but the year has been insights. Our heritage of working on product
exciting on many fronts. As we look ahead to the development for technology companies has
thirtieth year, I am joined by a new leadership provided us an opportunity to partner with
team that is all geared up to lead the Company technology leaders and bring this technology to
through the next phase of growth. our customers. We continue to add new partners
I am excited to have Mr. Christopher (Chris) which allows us the flexibility to express different
O’Connor take over as the Chief Executive Officer personalities to our customers.
of the Company. Having worked with Chris for We pride ourselves in being responsive to
over ten years, I am confident that he will build customer needs and requirements. Our experience
on the rich heritage of the Company and further in product engineering has become relevant to
establish business, brand, visibility, and respect for enterprises on the digital transformation journey.
the Company going forward. I am also delighted Our Software 4.0 methodology helps build robust
to welcome Mr. Sandeep Kalra to the leadership software that can be deployed in complex and
team. rapidly changing environments. Our work will
During the year, our revenue was `33,659.41 continue to shape the future of software driven
Million (USD 480.97 Million) and the net profit was businesses while we continue to navigate through
`3,516.79 Million. In February 2019, we initiated the technology shifts.
a share buyback plan to acquire shares from Our customers and partners continue to be our
the market, worth `2,250 Million over a period coaches and mentors and we appreciate their
of six months. On March 31, 2019, the cash and support and guidance. Customers have encouraged
equivalents were at `14,798.26 Million. us to go beyond technology solutions to delivering
While acknowledging that this was a difficult business value. We responded by creating new
year, we believe that the market for our services business models and by extending our growth
continues to grow and our differentiated offerings and solutions teams with domain experts in three
provide us opportunities for sustained growth. In industry segments – banking & financial services,
addition to a new leadership team, we set up growth healthcare & life sciences, and the industrial sector.
and solutions teams focused on establishing We believe that strong technology capabilities are
leadership and creating unique differentiation. fundamental to delivering business value and we
These initiatives have started to deliver targeted also continue to invest in technology areas like cloud
growth for the business. computing, data & machine learning, and identity
& security.
Digital transformation continues to be the core
theme for our customers. Businesses are under I am proud to share that, in May 2019, our total
pressure and need to improve efficiency and strength crossed 10,000. This is a significant
effectiveness to compete against technology milestone for the Company. With 29% women,
savvy upstarts. Businesses realize that to present our global population of 10,000 is diverse and is
a new face to their customers, they must leverage spread over 18 countries across the world.
technology, become agile and flexible so that they
 Shaping the future of software driven business
Our team is our strength and I am grateful to
the hard work and the efforts of our team that
is dedicated to ensuring that our customers are
completely delighted.
The Life at Persistent program that we launched
three years back has continued to expand in scope
and substance. We have extended the programs to
include families of our employees and are focused
on helping employees take a holistic approach to
careers at Persistent and life beyond.
Our commitment to the community continues to be
strong and I take this opportunity to congratulate
the Persistent Foundation team for completing
ten years of dedication to the community. Their
efforts have enthused employees to participate
and contribute to help the less fortunate. They
have ensured that the financial contributions
made by the Company towards corporate social
responsibility extend beyond the mandatory 2%
to make significant impact in the community.
I am proud of what the Foundation has achieved
in the first decade and I wish them all the best in
the future and hope they will continue to be the
catalyst for change.
In my new role as the Executive Chairman,
I look forward to working closely with Chris
and the new management team. I am confident
that the strong foundation that we have built
over the first twenty-nine years will set us up well
to launch bold, new initiatives that will take the
Company to new heights.
Finally, I thank my fellow shareowners for being
part of the Company even through a difficult year.
I assure you we will do our best to ensure that
your confidence in Persistent is rewarded.

Sincerely,
Anand Deshpande, Ph.D.
Founder, Chairman and Managing Director

From the Chairman’s Desk • 7

Message from their own to figure out how to derive the final
business value by correctly assembling the parts

the CEO
against what they already have in place. Thus, it’s
important to note the field in front of us presents
a myriad opportunities. Given our position, we are
uniquely capable of tackling these opportunities.
Our road ahead is about using all our tools to
It is my privilege to take a minute and connect
our advantage and driving a unique Persistent
with all of you via the Annual Report. The year
differentiation in the market. We are keenly
ahead promises to be one of the most important
poised to add value around all of our partners and
that Persistent has had in years. The entire
the market is demanding the differentiation. It is
Industry is accelerating to derive more value for
no longer sufficient to be good at projects, or to
their business from the technology investments
have great technology people, or to understand
that they are making.
technology elements better than most. The
It is important to note that all of us at Persistent world of our clients today wants to take all the
are extremely proud to be here. As a client of individual advancements in technology and to
Persistent, I have always admired the dedication, see them applied in a way that make sense for
ethics, and strength of character that the their business. The analogy I’m fond of is: in a
Persistent team exhibited in any work I did with tile floor, it’s no longer sufficient to be great at a
them. I’ve known Anand for over ten years; during tile of technology, but you must show the mosaic
that time I’ve called him a vendor, an investor, a to the client. Customers are looking at the value
partner, and for the last several years I’ve called added outcome that they will have by putting
him my friend. During the time I was at IBM, Anand down the right tiles in the right pattern. We are
and I swapped ideas, experimented with new keenly poised to do that if we drive client value
business models, told stories, held discussions as a theme across our great partnerships, our
on our life’s journey, and marveled at the speed great software, and, most important, our great
of change at which businesses use technology people who create the vision for our clients in
differently every year. To join Persistent with the market place.
Anand, utilize him as a mentor while nurturing
It is fantastic to be a member of the Persistent
new thoughts is second to my children, one of my
team, people, and culture. I’ll see you in the
life’s greatest accomplishments.
market where our customers are, pushing the
Every year the market takes bold steps. pace of our teams, and always creating business
Enterprises now have enough digital parts from results for our clients and ourselves, that we can
software vendors that they can attack the next be proud of.
stage of digital IT transformation. Everyone has
tried pure cloud projects where they take new
Sincerely,
business needs and use new technical digital
tools to address those. While all these cloud Christopher O’Connor
projects are important and, at times, noisy in Executive Director and Chief Executive Officer
the market, one should understand that the vast
majority of work in nearly all enterprises lays
in front of them. These enterprises live in the
world of hybrid. Years of investments made on
premises need to now connect their processes
in business-to-business and business-to-client
digital scenarios. Software vendors will continue
to make the parts of on-premise and digital
software. Yet, the enterprise will be left on
Shaping the future of software driven business

Message from the CEO • 9

Our Journey
To Date
As we both begin a new chapter in the journey Meanwhile, Anand after running Persistent for
of Persistent, not many would know that our 30 years, wished to get a helping hand in taking
journey together dates back a decade. Persistent to the next level.

It was at one of our customer’s offices that we The topic was broached over dinner, with Chris
both first met. One was there to sell Persistent, mentioning his aspiration to take on his next
while the other was trying to get more business challenge outside IBM and Anand sharing the
for IBM. We both got talking. During the update on his search for a new CEO. To work on
discussion, we realized that together we could do a mission to grow Persistent was just the obvious
much more. next step in the relationship then.

In the last decade, each of us has used the Chris decided to take the plunge and presented
other as a sounding board for bouncing ideas, his thoughts and ideas for Persistent to the
experimented with new business models Board. The Board did their due diligence and
when working together, told stories, and held gave their approval for the appointment of Chris
discussions on our life’s journey. Thus, we as CEO.
moved from being strangers to acquaintances to
partners to dear friends. So, here we both stand together today, hand in
hand, with a common mission. The road ahead
As destiny had it, when Anand started looking for won’t be smooth. There will be many bumps, we
a new CEO, Chris had decided to move on from will fight, we will argue, but we will watch each
IBM and had already given IBM his notice. Having other’s backs and together we will take Persistent
spent many years with IBM and reached the top, to the next level.
Chris was looking for the next big move in his life.

Our Journey To Date • 11

 Banking, Financial Services,
and Insurance

Technology shifts have progressed to the point

where companies, especially those in banking
and financial services are projecting new
personalities through elegant compositions
of technology. Digital banking products from
FinTech companies are compelling examples
of this. At the same time, traditional players
in this industry are in the midst of major
transformations to address slowing growth
and flatter yield curves. Reducing complexity
and simplifying operating models is imperative
for better margins. Maintaining credit growth
requires them to design and target products and
services better, to unique customer segments and
needs. Further, the projected digital personality
of a business in this industry must comply with
new regulations such as GDPR and CCPA.

The pursuit of value through compositions of

technology in the financial sector is seen in
the growing adoption of Artificial Intelligence,
Machine Learning, and Cloud. Some examples of
where we have created such value for customers
are in the areas of AI-enabled document
digitization, digital banking enablement, and
intelligent sales automation.

12 • Annual Report 2018-19

 Shaping the future of software driven business

Perspective
Financial institutions will increasingly need to deliver personalized and proactive
banking services to their customers in order to stay competitive. Advanced analytics
will empower them by aggregating and analyzing enormous amounts of data to gain
real-time insights into their customer interactions and banking operations.

The focus will remain on improving operational efficiency by automating front,

middle, and back office operations. Again, new technologies such as robotic process
automation and machine learning will play a critical role in identifying and executing
the most impactful process automations.

Fraud and risk detection will continue to be a growing area of focus for the BFSI sector.
Cognitive analytics with advances in machine learning will be used to harness and
process high volumes of structured and unstructured data to unearth suspicious
behavior and to identify fraud.

Using artificial intelligence, machine learning, and OCR technologies, financial

institutions will be able to leverage the experience and knowledge base stored in the
form of documents and files. Organizations will be able to reduce documentation
costs, build consistency, perform compliance checks, and take decisions with minimal
human intervention.

Banking, Financial Services, and Insurance • 13

 Shaping the future of software driven business

The banking and financial services industry is in the midst of a transformation. The
industry is getting disrupted by players who have data and can drive insights from
that data to bring new products, services, and business models that did not exist
previously. Customer acquisition, customer experience, customer outreach, product
definition, and product marketing are all likely to get revisited through the lens of
data insights. Customers are also more willing now to share their data with banks
provided they receive enhanced experience and personalized services in return.
Financial institutions that have the ability to acquire and leverage data can execute
their strategy better than others and have an opportunity to grow their top line and
bottom line exponentially.

At Persistent Systems, we are partnering with our customers to provide real time and
actionable insights that can be used to their business advantage. Our expertise in
data management, big data, cognitive analytics, cloud computing, and data security
allows us to provide a range of interconnected service and product offerings that
helps them write their growth story.

Jaideep Dhok
General Manager
Banking, Financial Services, and Insurance
Persistent Systems

Expertise

Digital Banking Insurance Underwriting

Enablement and Claims Automation
Enabling banks to build a set of digital native Improving the speed and accuracy of
banking services and core banking processes underwriting and claims process implementation
to create the most relevant digital banking for tangible business impact for insurance
products and services for their customers. customers. We provide advanced analytics to
reduce risk exposure and to improve overall
efficiency and effectiveness.

14 • Annual Report 2018-19

 Shaping the future of software driven business

Banking Operations Business Systems

Automation Transformation
Leveraging AI to drive efficiencies and to End-to-end technology consulting,
improve compliance in back-office operations transformation solutions and digital integration
and banking processes by unlocking the for financial institutions for faster product
potential of data existing in myriad documents launches, improved market penetration and
and other data sources. increased competitiveness.

Wealth and
Pension Solutions
Improving consistency and compliance in sales
teams servicing wealth customers to streamline
pitch creation and achieve better closure rates.

Treating IT as a key enabler significantly eases our work as a bank. Automation and
process improvements made possible due to IT tools and platforms developed by
Persistent give us the power to perform our jobs much more efficiently. That has
a direct impact on how our customers, employees, and partners get their job done
and boosts productivity across the whole value chain.

Theodosios Arvanitopoulos
Director
Operational Quality Assurance
Piraeus Bank

Banking, Financial Services, and Insurance • 15

 The industry-wide imperative of improving
healthcare while reducing costs can only
be achieved by uniquely combining applied
technology innovations with the transformation
of processes in healthcare. For example, the
ability of healthcare process owners to make
data- and knowledge-driven decisions can
significantly reduce variability in care, improve
efficiency in operations, and engage with
patients to provide better outcomes. By bringing
different technologies together, participants
across healthcare and life science project
themselves meaningfully and differently to a
broader set of constituents. Observe how life
sciences companies are now bringing solutions
closer to clinical providers and patients through
data and digital experiences and participating
more completely from testing to diagnosis
to care.

Persistent is uniquely positioned in the market

with the collaborations we have with leading
health systems such as Partners Healthcare
and Mount Sinai to jointly create, validate, and
market innovations for the industry. We are
actively driving transformational programs
with industry solutions that span a spectrum
from marketing and CRM to clinical workflow
and operations, all powered by the idea of
elegantly composing technology to drive value
creation in the industry.

16 • Annual Report 2018-19

 Shaping the future of software driven business

Perspective
New healthcare systems that are data and software driven and used via digital channels
will be needed, resulting in huge demand for data, machine learning, algorithms, and
digital technology solutions.

The entire ecosystem in healthcare and life sciences will be engaging with patients
directly and will create products and solutions that provide that last mile of connection
directly with the user. This will allow patients to be directly involved in evolution of
products, drugs, and services in ways that will parallel how retail, finance, and other
industries have been transformed based on consumerization.

 atient care and wellness will be delivered in new ways by fundamentally altering
P
patient-provider interactions based on direct-to-consumer principles from other
industries. Care will not just be provided by highly trained professionals, but will be
virtualized, software driven, and delivered by a variety of organizations and personnel
who are less qualified but aided by software. App-based health management,
pharmacies introduced within community clinics, and virtual care call centers are all
examples of this mega trend.

Advancements in healthcare and bio sciences have helped improve overall health
conditions and life expectancy of humans greatly. However, costs continue to climb
rapidly. The combination of these two factors has meant that the overall cost burden
on healthcare is becoming prohibitive. US alone spends over $3 trillion in healthcare
and this cost is growing over 10% annually. Traditional approaches to increasing
efficiencies in current systems and processes are proving to be insufficient, and a
disruptive approach to transform healthcare is needed. At the same time, advances
in digital, data, software, and device technologies have matured to tackle the most
complex issues in healthcare, and we believe that these technologies and innovations
will form the foundation for this transformation.

Rahul Patel
General Manager
Healthcare and Life Sciences
Persistent Systems

Healthcare and Life Sciences • 17

 Shaping the future of software driven business

Expertise

Molecular Biology and Reimagining Patient

Analytical Instruments Experiences via Pivot
(Engineering Services) Labs
Helping build products for leading instrument Bringing strategy, data science-based discovery,
vendors that generate, analyze, and implementation, and real-life validation capability
manage data generated from spectrometry, for industry players that deliver products and
chromatography, and genomics instruments. solutions for patients.

Engagement Hospital Operations

Platforms via Optimization via
Salesforce COE Herald Health

Enabling Health Systems to more effectively Helping hospital staff to react in real-time to
engage with patients along their journeys by events occurring in clinical operations in order
delivering value (self-service, information, and to optimize resources such as beds, transfer
logistical support) through seamless connected of patient across departments, discharge of
experiences for patients. patients, and more.

CRM Solutions Precision Clinical Systems

via Salesforce in conjunction with
COE Partners Healthcare

Enabling provider organizations to manage Helping clinical teams improve outcomes at

broad relationships, engagement, and an enhanced scale through automated patient
collaboration across their provider network, characterization and precisely mapping them to
communities, and patients via Salesforce- appropriate drugs, tests, and procedures.
based accelerators. The accelerators include
Patient Access Services, Physician Liaison
Management, Provider Referral Management,
Care Coordination, Home Health, Post-Acute
Care Tracker, Bundled Payment Manager, and
Digital Marketing for Healthcare.

18 • Annual Report 2018-19

 Shaping the future of software driven business

Achieving a continuous learning system is a broad goal in the industry to transform

healthcare. However, the inputs and outputs of our health systems are fundamentally
flawed and the traditional process of delivering care only after patients decide to
see a doctor is a workflow that is not patient-centered. We have ended up digitizing
decades old practices and turned health system professionals into data entry clerks
in recent waves of electronic and digital developments. There is a once-in-a-lifetime
opportunity to fully reconstruct health delivery in patient-centric fashion based on
the technological possibilities that now exist in data, AI, and digital realm. Capturing
the right information content, organized around human biology will be necessary to
transform inputs and outputs for such learning systems. With the right data inputs,
algorithmic approaches can be constructed for most disease conditions to provide
continuous care to patients in scalable workflows that go well beyond patient-provider
visits. Promising evidence from recent programs suggest that this transformation
could deliver dramatic improvements in clinical outcomes and reduce total medical
expenses, while improving patient satisfaction.

Dr. Calum MacRae

Vice-chair of Innovation, Department of Medicine,
Brigham & Women’s Hospital, Partners Healthcare;
Associate Professor, Harvard Medical School

Healthcare and Life Sciences • 19

 At the heart of Industry 4.0 is the idea of how
technology is elegantly composed to transform the
Industrial sector. Companies are now relying on
process and lifecycle management platforms in new
and more strategic ways. These systems are further
enhanced with the growing adoption of IoT to access
additional contextual information throughout the
product lifecycle, from product development and
engineering to manufacturing operations or the
field performance of products.

Persistent is partnering with leading edge

companies in the Industrial sector to help project
them uniquely and differently to their constituents.
They bring together process platforms, rich data,
and advanced AI techniques to deliver continuous
innovation and optimization. We are deeply
engaged with companies who build many leading
technology products used in the Industrial sector.
Our customers rely on our expertise in knowledge
systems, machine learning, and deep learning
to progressively pursue goals that drive value.
Some examples include full traceability in product
development, full automation in quality inspection,
visibility into resource consumption, or meaningful
improvements in machine uptime through predictive
and preventive maintenance.

20 • Annual Report 2018-19

 Shaping the future of software driven business

Perspective
The global manufacturing industry is cautiously upbeat with increased output and
higher capacity utilization even as it grapples with global trade tensions, strained supply
chain, and skills shortage. These factors are driving higher M&A activity and adoption of
digital technologies to expand capacity and mitigate risk.

Data analytics, Internet of Things (IoT), ERP systems, and customer collaboration are
the key technologies and applications that companies will invest in as they look to build
technology-driven business models and prepare for the fourth industrial revolution.

The ongoing digital transformation of the Industrial sector has made the concept of the
‘Digital Twin’ a reality for many organizations. Manufacturers are now able to maintain
near-real-time, all-digital versions of their physical products, which accelerates time to
market and reduces development costs, among other benefits.

Manufacturers are embracing a broader product lifecycle approach, emphasizing the

need for clean, comprehensive data and a complete integration of legacy support
systems, ensuring that data is available when and where it is needed.

The Industrial sector has begun moving away from on-premises solutions towards
public, private, or hybrid cloud arrangements, allowing them to drastically reduce costs
while improving operational performance.

Industrial • 21
 Shaping the future of software driven business

As the Industrial sector embraces technologies like IoT, Cloud, Digital Twin, and
AI/ML, one need is abundantly clear: the need for integration. The integration of
systems, data, platforms, and processes combined with advanced analytics and AI
allow organizations to tap into the full potential of the Industry 4.0 revolution.
Persistent Systems is uniquely positioned as the master integrator for industrial
IoT, combining our deep expertise in industrial systems, IoT platforms, multi-cloud
capabilities, and AI/ML skills to deliver value-driven results for our customers. The
Industrial solutions we have delivered to date are accelerating product development,
improving product quality and service, increasing operational efficiency, and
enhancing the user experience for our customers.

Jiani Zhang
General Manager
Industrial
Persistent Systems

Expertise

Engineering and
Application Lifecycle Product Lifecycle
Management Management
Enabling industrial customers to optimize and Accelerating product development for industrial
accelerate their development processes by customers by deploying Dassault Systèmes
infusing Watson AI into IBM’s comprehensive 3DEXPERIENCE platform with a suite of
test planning and test asset management unique value-added services and support
solution, as well as tightly integrating IBM’s options to ensure success, including business
suite of ALM solutions with related platforms process consulting, integration of multi-CAD
such as Atlassian’s Jira development and issue and enterprise platforms, and PLM platform
tracking software. implementation and customization.

Providing true end-to-end Industry 4.0 solutions that combine deep

Internet knowledge of platform and data integration along with advanced AI/
of Things ML capabilities to deliver solutions for smart energy management and
smart manufacturing operations, thereby reducing expenses while
optimizing operations.

22 • Annual Report 2018-19

 Shaping the future of software driven business

In this day and age, we have a real responsibility to be good stewards of our
environment. The Internet of Things gives us a big opportunity to make a significant
impact to that end. We are an electrical contractor company that has been able to bring
tremendous automation to assist owners and tenants in large residential facilities
by deploying sensors for a broad range of systems such as lighting, irrigation, pool
filtration, and security systems, without reliance on cumbersome manual tracking
procedures. I see similarities between the Common Sense platform that Persistent
has helped us build and what is needed in a broad range of commercial and industrial
systems where outages and suboptimal operations can be very expensive for
manufacturers and customers alike.

Kim Weiss
Founder and CEO
Three Phase Electric

Industrial • 23
 AI, ML,
and Data

Data and analytics are at the heart of an

organization’s efforts to transition into a digital
enterprise. Without a foundation in data, the idea
of an enterprise projecting different business
personalities to different constituents and doing
this dynamically would not be possible. Data-
related projects and programs are the heart of an
organization’s ability to introduce new products and
services at a faster pace, optimize costs, and operate
processes most efficiently.

We help organizations achieve these outcomes by

developing their data and governance strategy,
building infrastructure to digitize data, and
building AI and cognitive applications on top of
data. Enterprises are adopting cloud as a platform
for data and analytics to benefit from and take
advantage of cost efficiencies, flexibility to scale,
and to achieve agility in their business. We provide
services for them to migrate data, run analytics, and
monetize data on the cloud. We bring our expertise
in data technologies and translate that into business
value to software companies who are building new
or cutting-edge data products, and to enterprises
across financial, industrial, or health sectors.

24 • Annual Report 2018-19

 Shaping the future of software driven business

Perspective
Organizations today are consciously designing data and analytics strategies as part of
their business strategy and to take informed decisions. The governance mandate posed
by privacy regulations such as GDPR, CCPA, HIPAA, and others will force organizations
to proactively weave compliance into their business and operating models.

Cognitive computing will seek to replicate, augment, and expand human capabilities
to enhance the overall quality of life at home and at work. Automated vehicles, smart
warehouses, comprehensive regulatory compliance, and digital patient profiling will
continue to be some of its practical applications.

With on-premises big data stacks migrating to the cloud, organizations across
industries will use the unlimited scalability and performance provided by the cloud to
power pay-as-you-go pricing models and unlock newer income streams.

Human Machine Interaction (HMI) will benefit from the investments in Big Data and
will produce creative opportunities in the way we interact with data. Voice interfaces
will enable users to interact with systems in natural language and 3D data visualization
will help decision-makers interact with large volumes of data.

Machine learning will be used in production to augment rather than replace humans
in an increasing number of real-life applications across various industries. This will be
possible because of easier accessibility of algorithms and infrastructure.

New age data warehouse solutions referred to as data lakes built on the cloud and
delivered as a service will provide potentially unlimited scalability. Access to low-
cost storage and advanced capabilities such as real-time data capture and multiple
consumption mechanisms will allow organizations to innovate aggressively.

AI, ML, and Data • 25

 Shaping the future of software driven business

We are seeing an increasing number of organizations looking at refining data, the

new “oil”, to gain insights on new opportunities and obtain competitive advantage
via data monetization. Data monetization is the “art of the possible” and we are
enabling customers to harness the value of data where the data could be within or
outside the organization. As organizations treat data as the new product, we see
their monetization falling into four categories: Enrichment, Aggregation, Spinning,
and Promotion. Each of these further expands into use cases that provide benefits
such as increasing revenue streams, increasing decision speeds, gaining competitive
advantage, reducing/optimizing costs, increasing insights, finding new business
models, and more.

Sameer Dixit
General Manager
AI, ML, and Data
Persistent Systems

Expertise

Data Strategy Artificial Intelligence

and Governance and Machine Learning
Data strategy assessment and roadmap Application of data science and machine
development to ensure complete alignment learning algorithms to achieve process
with business and governance goals. transformation and industry-specific outcomes.

Architecting Data Cloud Analytics

Platforms
Evaluating, designing, and implementing Creation and migration of the data analytics
data lakes and other storage and compute stack on the cloud for scalability, enabling of
platforms to help build a strong foundation newer business models, and delivery of advanced
for data in an organization. intelligence capabilities and applications.

26 • Annual Report 2018-19

 Shaping the future of software driven business

Strategy, design, and implementation of enterprise-wide

Cognitive Search cognitive search capabilities for delivering meaningful insights
and Insights and improving decision-making.

At Clearedin, we are helping organizations and users ‘Eliminate Phishing’.

Our intent is to build a relationship graph among individuals, services, and
companies, thus enabling sharing of a trusted network to keep the bad guys out.
We partnered with Persistent who brings an excellent combination of product
development excellence and expertise on data. It has been an exemplary journey
so far and we continue to see how we can add more value to our customers.

Deepak Kumar
Co-founder and CEO
Clearedin

AI, ML, and Data • 27

 Cloud
Services

Cloud computing has become a critical infrastructure for business and IT. The advent of next-
generation technologies and initiatives are enabling enterprises to project new business personalities.
It exemplifies that the emphasis of value has moved from the ability of an enterprise to navigate
technology shifts to their ability to elegantly compose technology. Successful enterprise adoption
of cloud computing requires the principled interweaving of technical concerns (platform, security,
and operations) with organizational concerns (business, people, and governance). In other words,
the cloud architecture must be aligned with the enterprise’s Governance, Risk, and Compliance
(GRC) model.

The need for industry-specific regulatory compliance in segments such as banking and healthcare
has been augmented by the geopolitical pressures of a growing body of legislation around data
security and privacy, leading to a host of concerns that must be managed around data protection
and governance in the cloud. This is both a complication and an opportunity, where we can
support enterprises through all phases of their cloud adoption journey with a coordinated position
highlighting our complementary and reinforcing strengths in the areas of data services, cloud
services, and security services.

28 • Annual Report 2018-19

 Shaping the future of software driven business

Perspective
Cloud computing will continue to be a critical component in the growth of
technologies such as digital business, IoT, and artificial intelligence. Today’s Cloud
2.0 is the delivery vehicle for next-generation business services.

Regulatory and sovereignty pressures on client data will drive enterprise cloud
deployments to converge to hybrid combinations of public and private platforms.
Edge computing models will flourish where high data volumes and low response
latencies demand them.

Cloud execution models will shift from virtual machines to containers and serverless
architectures. For existing enterprise applications, this shift will happen as a
series of incremental changes: re-hosting, followed by re-platforming, and ending
with re-factoring.

Microservices architecture is becoming the norm due to its promise of agile

composition and delivery of services. Multiple such environments with
communication and API between them increases the complexity as well as the
attack surface for hackers, which enterprises will need to guard against.

The worldwide total addressable market for general-purpose public cloud services
is projected to grow at a CAGR of 16-20% through 2022. In addition to current
opportunities in North America and Europe, we see worthwhile near-term opportunities
in parts of Asia and longer-term ones in sub-Saharan Africa. Building on our core
strength in migration and engineering services, we are expanding into the adjacencies
of consultative services and managed services to become a preferred one-stop shop
for the complete lifecycle of an enterprise’s cloud adoption journey. Our offerings are
differentiated by their emphasis on incorporating enterprise integration as a first-
order design consideration.

Sid Chatterjee, Ph.D.

Chief Technology Officer and
General Manager — Cloud Services
Persistent Systems

Cloud Services • 29
 Shaping the future of software driven business

Expertise

Enterprise Cloud-Native
Cloud Migration Development
Enabling enterprises take the first step in Providing cloud application services to develop
their cloud journey by rapidly moving their new cloud-native applications, or to re-platform/
applications and data to the cloud through re-factor existing applications for new target
efficient migration strategies for them to clouds, thereby enabling companies to accelerate
begin realizing savings in IT expenditure. time to market while saving development costs.

Enterprise Application SaaSification

Modernization
Modernizing legacy enterprise applications to SaaS-ifying customer-facing applications,
create new business value by enabling them managing their deployment and lifecycle on
for cloud and updating them with modern the cloud, and transitioning to a subscription-
features and capabilities. Helping migrate based pricing so that enterprises can move their
legacy enterprise applications to the cloud to customers to a pay-as-you-sell model, accelerate
enable functionalities that better align with time to value, and outsource SLA responsibilities,
the business needs. all with only a small upfront investment.

Cloud Platform – Rovius

and Business Manager

Modernizing datacenters with Rovius Hybrid

Cloud, our fully managed hybrid cloud
infrastructure designed for the enterprise.

30 • Annual Report 2018-19

 Shaping the future of software driven business

SWAYAM is a program initiated by the Government of India and designed to achieve

the three cardinal principles of Education Policy viz., access, equity, and quality.
The objective of this effort is to take the best teaching learning resources to all,
including the most disadvantaged. SWAYAM seeks to bridge the digital divide for
students who have hitherto remained untouched by the digital revolution and have
not been able to join the mainstream of the knowledge economy.

This MOOC platform facilitates hosting of all the courses to be accessed by anyone,
anywhere, anytime. All the courses are interactive, prepared by the best teachers
in the country and are available, free of cost to any learner. This cloud platform is
highly reliable and scalable to cater to the needs of millions of students with an
emphasis on India and specific programs are being planned for Afghanistan and
Africa. The portal has a federated structure and the main portal integrates with any
other course-delivery platform through APIs and hence can be a single interface
for users to select courses offered by different universities and institutions.

Persistent has been a valuable partner in developing and maintaining this.

We always have strict timelines to go to market with a platform that has visibility
across the nation and speed is of the essence here. The Persistent team has been
delivering to expectations.

Prof. Andrew Thangaraj

National MOOCs Coordinator
NPTEL

Cloud Services • 31
 Identity, Access,
and Security

Knowledge of customer identity has become

the fundamental building block in a modern
enterprise. With the proliferation of technology
and usage of data in modern business models,
accurate user identification has become critical.
As business models and consumer habits
evolve, most businesses, across industries, are
dependent on and are enabled by technology
platforms. As businesses grow beyond current
boundaries, regulations and privacy concerns
are forcing them to become responsible as they
track and understand their customers’ habits,
preferences, and usage patterns by collecting and
analyzing data. Identity and security are integral
as companies utilize the reach and elasticity of
cloud platforms. Systems that enable a business
to expand its knowledge of customer identity in
an agile, secure, and privacy-aware method thus
become the driver of business growth.

The security expertise at Persistent is an important

dimension of how we help our customers deliver
and protect value when composing technology to
project different digital personalities.

32 • Annual Report 2018-19

 Shaping the future of software driven business

Perspective
Organizations need to modernize their security stack to meet their changing needs
while providing agility to their business platforms.

Technology platforms should no longer necessitate time and resource intensive

operations and upgrade cycles every 24-36 months. This is possible by exploiting
today’s Cloud rich IT platforms.

Most businesses either have or can develop a rich stockpile of data that can provide
intimate understanding of user behavior, preferences, and opportunities. Data
analytics is going to drive business models and technology platforms.

The ability of businesses to gather actionable intelligence from consumer data and
consumer behavior is going to depend on their ability to correlate information using
user identities.

The cyber security team at Persistent is helping businesses modernize their enterprise
and consumer Identity & Access Management (IAM) platforms to meet the needs of
next-generation business models and technology platforms. We help our customer use
their current day IAM platforms to achieve three key objectives:
1. Establish and corelate enterprise and consumer identities and related data
analytics while securing access to on-premise and cloud systems
2. Exploit cloud platforms to provide ability to scale up or down as per business
needs and expand geographical footprint in an agile fashion
3. Reduce operational and maintenance cost while ensuring privacy and security of
identity information

Swapnil Mehta
General Manager
Identity, Access, and Security
Persistent Systems

Identity, Access, and Security • 33

 Shaping the future of software driven business

Expertise

Identity Modernization Self-Sovereign

and Transformation Identities
Strategy, assessments, and transformation of Strategy, proof of value, and pilots for leveraging
identity governance and access management self-sovereign identities in hospitality, retail, and
to support software driven enterprise and healthcare, leveraging the principles of consent,
consumer businesses. selective disclosures (ZKP), and claims.

Cloud Security Data Access

Governance and Privacy
Strategy, assessments, and roadmaps for Helping organizations with discovery,
moving identity infrastructure to leverage classification, and tagging of data assets and
cloud offerings while improving security setup of a governance model to manage risk
posture, increasing operational efficiency, and in an increasingly privacy aware business
reducing risk. environment.

34 • Annual Report 2018-19

 Shaping the future of software driven business

Security & Privacy must be foundational to everything organizations do online.

They have a responsibility to protect employee, partner & customer data, and
identities. Failure to do so subjects them to large costs and reputational damage.
At Persistent, we work with organizations to design, build, deploy, and manage
robust, flexible, and secure systems capable of supporting business requirements,
while withstanding ever increasing numbers of cyber security challenges.

Tom Kendra
Non-Executive Non-Independent Director
Persistent Systems

Identity, Access, and Security • 35

 Software Product
Engineering

Businesses are building and using software to

define and compose technology components
as they redefine and project their business
personalities. They are becoming software
driven to deliver business value in volatile and
uncertain environments. Flexibility and agility,
which have been the hallmarks of software
product development process, are also being
imbibed by businesses into their business
models and processes.

Since inception, Persistent has been delivering

value to ISVs and helping them innovate,
design, and develop their products. Software
4.0 is our guiding framework that helps us
build best-in-class products for ISVs and
software driven capabilities for our enterprise
customers. Enterprises and ISVs alike are
using next-generation technologies such as
microservices architecture, platform-based
ecosystems, design thinking, DevOps, and
automation to build newer user experiences
for their constituents. We help them develop
their digital personality by applying the core
principles of Software 4.0 that cover people,
process, tools, and data.

36 • Annual Report 2018-19

 Shaping the future of software driven business

Perspective
Hyper-personalized services and contextual customer experiences are becoming the
norm, driven by APIs, microservices, and interconnected data sources and applications
that exchange intelligence continuously. Dashboards and reports will soon be passé,
with customers expecting continuous delivery of real-time, actionable insights from
applications.

In the coming years, industry incumbents are uniquely positioned to become the new
leaders of digital disruption. They have already embraced agile methodologies and
design thinking techniques and are armed with new-age digital technologies backed
by access to vast amounts of user data. This gives them a unique advantage that will
help them to match and even surpass born-digital competitors.

Product telemetry – the process of tracking user behavior on systems and devices – is
increasingly playing a central role in helping product management teams to define the
next set of features for their product. While telemetry has been around for a while, its
potent combination with data analytics will continue to lend unprecedented levels of
agility and intelligence to product roadmap creation.

Our legacy and expertise in the product development space, ability to predict industry
trends, early investments in digital technologies, the convergence of software product
engineering, and digital transformation markets gives us a unique advantage to create
value for our customers. Our customers rely on us as partners in their transformational
journey towards becoming a software driven business.

Rakesh Rathod
General Manager
Software Product Engineering
Persistent Systems

Software Product Engineering • 37

 Shaping the future of software driven business

Expertise

Enterprise Platforms and Co-Creation and

Low-Code Development Co-Development
Bringing the software development DNA to Collaborative innovation or co-creation in the
enterprises as they build new technology pursuit of exploratory digital initiatives and
platforms and low-code applications in their technological experimentation to build new
digital transformation journeys. business models and revenue streams.

Product Roadmap Connectors and

Acceleration Integrations
Accelerating product roadmaps for customers Amplifying customers’ product capability as
and increasing their speed to go from idea or well as market potential through scalable
customer need identification to release. and adaptable designs for data and process
interoperability.

Non-Traditional
Engagement Models

These engagement models bring together two

or more organizations based on mutually agreed
upon roles and terms for asset or IP ownership,
as well as shared financial risks in pursuit of
uncertain future outcomes (unlike traditional IT
or product development services). These models
include open source and value-added services,
product IP ownership, revenue share, and IP
licensing and royalties.

38 • Annual Report 2018-19

 Shaping the future of software driven business

We are not a software company, we are an investment firm. Our experience with
Agile and with Persistent has been terrific, beyond what we had ever anticipated.
The ability to explore different possibilities and adopt new directions and discard
others that did not seem to work was something that allowed us to have a product
created and bring that to market much more quickly than we had anticipated.

Stanley Wang
Founder
K2 Venture Capital

Software Product Engineering • 39

 Shaping the future of software driven business

Message from the Leaders

Industrial companies, such as those in automobile, aerospace,

medical device, pharmaceutical, and defense manufacturing sectors,
are key customers of Persistent. Persistent’s products and services
drive regulatory compliance as well as growth strategies for these
companies. These customers employ advanced product development
platforms for their software and hardware systems and need the ability
to interconnect those systems. They build ‘digital twins’ to the physical
devices and systems to share and analyze the data, detect problems,
and develop new plans and roadmaps. We help them with automation
and on-demand data sharing. Our services make these companies
audit-ready and streamline the design, testing, and manufacturing of
products within the Company and across its supply chain partners.

Mark Simpson • President — IBM Alliance

Our customers today are looking to leverage digital technologies

to enhance the way they engage internal and external customers,
achieve operational efficiencies, and bring innovative business
models to market. In this process, they are faced with an increasingly
complex set of technology choices.
Persistent provides the right domain knowledge in chosen verticals, a
design-led thinking approach, and Software 4.0 methodology to help
evolve a resilient software driven business for our customers. We also
bring strong partnerships with Amazon, Microsoft, Oracle, Salesforce,
Appian, OutSystems, BluePrism, Ping, and other leading technology
players to build highly effective digital platforms for our customers.
Our customers look at us as a trusted ally, working closely with them
as their extended team in their forward-looking journey.

Sandeep Kalra • President — Technology Services

40 • Annual Report 2018-19

 Shaping the future of software driven business

According to research, 80% of organizations will embark on

competency development initiatives in the field of data literacy by
2020. And just as data is becoming more important, so is protecting
that data from the increasing number of security breaches.
Accelerite is developing tools that provide the Enterprise as well
as ISVs the ability to gain insights to the data without the need for
specialized skills. Accelerite ShareInsights, with a visual designer
and no code interface, makes it possible for business users to design
data pipelines and run machine learning models to get to the insights
they need.
Accelerite’s Sentient family of products secures today’s enterprises
and delivers peace of mind to the CIOs and CISOs. Accelerite aims
at simplifying security by reducing the friction and costs associated
with security.

Col. Jitendra Gokhale • Veteran, President — Accelerite

Business outcomes and people outcomes are two sides of the same
coin. We believe that people outcomes cannot be achieved without
breathing life into work. Our theme ‘Life At Persistent’ has evolved
over the last year to help employees create harmony so they can
pursue their professional and personal interests together without
having to compromise one for the other. As we look ahead, our focus
will continue to be on initiatives that align business and individual
growth, developing a culture of ownership at all levels and creating a
vibrant workplace.

Sameer Bendre • Chief People Officer

We have completed a decade of commitment in the field of CSR.

The impact assessment by an external specialist firm shows that we are
on the right track, which further boosts our confidence to go forward
with full force. In the future, we are committed to providing better
services to our beneficiaries, better opportunities to our partners for
capacity building, and better outcomes to our stakeholders through
razor sharp focus in project execution across our charter and across
all locations.

Sonali Deshpande • Chairperson — Persistent Foundation

Message from the Leaders • 41

Life at Persistent
‘Life At Persistent’ has become the central
theme of our employee engagement and
development efforts. To ensure the sustainability
of our initiatives, we focus on three areas under
Life At Persistent, namely ‘One Persistent’,
‘Careers At Persistent’, and ‘My Life At Persistent’.

This year, we worked on taking initiatives under

each area to the next level and reaching out to as
many employees as we could. We implemented a
new Performance and Health Management System
(PHMS) as an overarching program. We are glad to
report that our employees have embraced these
initiatives as part of their Life At Persistent.
 Shaping the future of software driven business

One Persistent mean to Persistent. In season two, our leaders

spoke about why they think the core values are
important, explaining how they help both the
‘One Persistent’ is all about giving employees
individual and the organization. Tabletop artifacts
across the organization a shared sense of
that reinforce our core values were presented
purpose that is aligned with the organizational
to the leaders of all our Global centers with the
goals, irrespective of their individual roles and
intent of having them displayed on their desks.
the organizational unit to which they belong. We
At the end of the year, we observed an increased
worked on:
awareness among our employees.
Core Values
Our core values continue to guide us in our
day-to-day work, help us deal with conflict, and
keep us focused on our collective goal.

To be trustworthy
and accountable

Commit to the
highest standards of
ethics and integrity

To be humble,
respectful, and
collaborative

Be aware and wanting Employee Connect

to make a difference Employees began to share stories from work as
to the world we live in well as personal anecdotes through our Monday
Coffee email communication.
During the year, we stepped up our efforts to
Strive to achieve
connect with employees. Over 4,800 connect
excellence in
meetings were conducted to keep analyzing
everything we do
the employee pulse. These connect programs
included HR Leadership connect, DH/DP
Building on last year’s efforts, we continued
connect, Project Manager connect, focus group
promoting awareness about our core values
discussions, and skip level meetings. The
across the organization throughout FY 2018-19.
‘Frank Survey’ was conducted in December.
A video series dedicated to explaining Persistent’s
We observed a slight increase in employee
core values was rolled out in two seasons. In
participation as well as in the overall positive
season one, Dr. Anand Deshpande and our Board
perception of their experience at work.
of Directors explained what the core values

Life at Persistent • 43
 Shaping the future of software driven business

Celebrations
Coming together to mark different occasions
strengthened the employees’ sense of oneness
Ongoing Leadership this year. At Persistent centers across the globe,
Employee Interaction there were more celebrations held this year, with
cultural celebrations in particular, being met
with great enthusiasm. We held special events
for employees completing 15 years with us. It
was wonderful to have their families join in and
celebrate this milestone along with their team,
managers, and friends at Persistent.

Employees serve as a measure of how

we, as an organization, are performing.
Talk through the grapevine and from
external sources can shape perceptions
about the organization.
Hearing our leaders share their
perspectives, thoughts, and guidance Careers At Persistent
always helps us validate our perceptions New Performance and Health Management
and correct them as needed. This is System
very important to ensure that everyone
Helping employees build their career, that is in
within the organization stays on the
line with the organizational goal, has been the
same page. To this end, we conducted
focus this year. Various initiatives covering goal
quarterly chats with the leadership team.
alignment and trainings were conducted.
Employees across the organization were
invited to participate in an open dialog With a focus on enabling individuals to take
with the leaders. Dr. Anand Deshpande, charge of their own careers, we upgraded
Unit Presidents, our CPO, and other our continuous performance appraisal (CPA)
leaders interacted with employees approach and created a new Performance and
through this forum. Health Management System (PHMS) in which the
‘performance’ part focuses on the achievement
of short term goals where as the ‘health’ part

44 • Annual Report 2018-19

 Shaping the future of software driven business

focuses on the long term goal. This system with a sense of clarity and purpose. The Career
encourages each employee to define their own Guidance Council and Career Coaching Service
goals in alignment with the organization’s goals. are positioned to help employees seek career
Connecting career development opportunities guidance from internal and external experts.
to business objectives strengthens the sense of The ‘Design Your Career’ Program and the CaPro
alignment across the organization. Program are intended to help employees plan
Enabling Careers their careers at Persistent for the next 3-5 years
using an informed and systematic approach. To
Careers At Persistent is all about the shift ‘From help employees develop their communication,
a We Enterprise to a ME Enterprise’, as per our public speaking, and leadership skills, we formed
theme statement. We actively work on enabling the Persistent Toastmasters Club. Hackathons,
employees’ career development through Self- meetups, and events provide employees with
Assessment, Reflection, awwwnd Achievement, opportunities to nurture their technical skills
and that is where our Career Development in niche technologies within a peer-learning
Program gets its name, ‘SARA’. environment. Such technical initiatives also
catalyze networking among employees.
Promoting Internal Job Growth
In order to encourage employees to explore
internal job opportunities at Persistent, an
extensive campaign was run to promote
Persistent’s internal jobs portal, iJobs.
Experiential Programs
To align Persistent employees with the
organization as a whole, we institutionalized
experiential programs that cover varied aspects
such as the organization’s values, business
needs, leaders’ expectations, team dynamics, and
cross-hierarchical alignment. These programs
were gamified and packed with people-centric
and business-relevant takeaways. Currently,
our experiential programs exist in three forms
We ran various existing and new programs (Offsites, Outbound, and Experiential Programs
through the year, such as our ‘Design Your 2.0), and four types (Recreational, Educational,
Career’, CaPro, and Gotten programs, as well Developmental, and Dysfunctional). In FY 2018-19,
as the Persistent Toastmasters Club, Career 114 of these programs were conducted, reaching
Development Tools, Career Guidance Council, 2,500+ employees. These programs received
and Career Coaching Service. Along with such an excellent response from our employees.
initiatives, many technical events and sessions Persistent’s Experiential Programs 2.0 model – a
such as Agile Day and our My Career Story series 2-hour model of in-house experiential programs –
were run. was awarded the 1st Runners-up position in the CII
Career Development Tools and the Gotten National HR Circle Competition 2018.
Program help individuals understand themselves
better, empowering them to pursue their careers

Life at Persistent • 45
 Shaping the future of software driven business

Leadership Development We also worked on enabling engagement

Our Leadership Development COE charter managers and digital ambassadors within the
involves creating a competitive advantage by Technology Services Unit to generate newer
building a strong leadership pipeline and bridging opportunities within existing accounts. This
existing leaders’ skills gaps. Our focus for 2019 was done through a program on Strengthening
has been on strengthening their business Consulting Capabilities. Over a period of five
understanding and customer engagement. months, the participants learned how to work
with their clients as trusted partners, probe for
value, and influence their choices by offering
business solutions.
A Financial Acumen for Sustainable Growth
LEAP — Leadership Enablement program was introduced to enhance non-finance
at Persistent leaders’ ability to make financially-intelligent
decisions. Senior leaders from across the
organization attended this highly engaging
two-day workshop. They gained a better
understanding of reading financial statements,
profitability and cash flow management, the
global and domestic economic scenario, and
reading a Funds Flow statement to evaluate the
financial performance and health of a business.
Prerana: After the successful implementation
of the ASPIRE Program last year, the women
leaders from the ASPIRE team came up with
another unique program named DISHA. A
pilot program was launched across various
locations within Pune. Their goal was to create
This six-month program helps mid- a women’s network that would give women in
level, high-potential managers gain team leadership positions Direction, Inspiration,
a comprehensive understanding of Support, Happiness, and Appreciation. Women
Persistent Systems, its customers, that volunteered for this program were divided
positioning, and offerings. This year we into approximately 7 groups of 12 each. Women
also launched an exclusive batch for our from our ASPIRE leadership batch headed each
global employees. group and conducted 10+ sessions in about 8
months. These sessions included skill-building
workshops for networking and decision-
making, as well as a session where the senior
management at Persistent was invited to speak
Programs such as Navigate to Value were about the company and give the group a better
launched to equip our sales leaders in the US with understanding of its structure. Additionally, books
a deeper understanding of what a client buying such as Lean In, Nonviolent Communication, and
approach entails, while also covering areas such Mindset were reviewed and discussed during
as framing client value, solution-selling, and these sessions. We received positive feedback on
strengthening a client-facing presence. DISHA, with many of the participants reporting

46 • Annual Report 2018-19

 Shaping the future of software driven business

an increase in confidence and expressing their

desire to continue to be a part of the program.
In FY 2018-19, over 1,200 employees participated
in various Careers At Persistent initiatives.
Wellness Program at Persistent

My Life At Persistent
Green Persistent Initiatives
In FY 2018-19, as many as 26 Green Persistent
Initiatives were organized at various Persistent Wellness Wednesday, a series of wellness
Systems offices. These initiatives fall under tips shared every Wednesday, set the
these four verticals of Green Persistent: ball rolling and helped create awareness
about health among our employees.
• Pollution control – 7 initiatives More than 74% of our employees
• Conservation of energy – 3 initiatives participated in the annual health check
• Conservation of trees – 9 initiatives organized at our India locations. At the
• Waste Management – 7 initiatives Persistent Run, a flagship event, we had
Overall, 750+ employees participated in our 4,500+ enthusiastic runners. Wellness
Green Persistent efforts to do their bit for the workshops on Zumba, Yoga, and
environment. functional circuit-training ensured that
Beyond Work Initiatives our employees stayed fit. Our Wellness
experts helped employees overcome
During FY 2018-19, 250+ Beyond Work Initiatives stress and various ailments. The
(BWIs) were organized at different Persistent Trekking Community organized three
centers, reaching 3,000+ employees every Himalayan treks in addition to their
quarter. Catering to a diverse range of interest monthly treks, and we are proud to say
areas, these initiatives included Art, Fun, Family that Persistent employees summited
Connect, Children-special Initiatives, Festival successfully! On International Yoga
Celebrations, and Knowledge-Sharing. Pulse, our Day, Persistent employees across our
annual event, was celebrated at all Persistent centers did over 15,000 sun salutations.
centers, with participation from over 80% of our
employees.
On average, our employees were engaged
through BWIs for 4.5 hours per head per quarter.

Life at Persistent • 47
 Shaping the future of software driven business

Overview of Financial Performance

(Based on consolidated figures)

Summarized Profit and Loss Statement In ` Million

Particulars 2018-19* 2017-18* 2016-17* 2015-16* 2014-15

Income
Revenue 33,659.41 30,337.03 28,784.39 23,123.31 18,912.52
Other Income 876.55 1,191.01 958.45 772.88 938.15
Total 34,535.96 31,528.04 29,742.84 23,896.19 19,850.67
Personnel expenses
(including cost of professionals) 22,739.98 21,497.09 19,826.63 15,654.23 12,203.34
Operating and other expenses 5,357.03 4,152.68 4,304.29 3,554.00 2,805.71
Profit before interest, depreciation and
6,438.95 5,878.27 5,611.92 4,687.96 4,841.62
amortization, exceptional item and tax
Interest 3.05 0.79 0.91 0.92 3.37
Depreciation and amortization 1,572.51 1,584.87 1,490.17 990.13 938.53
Exceptional item (expense) - - 114.11 - -
Provision for taxation 1,346.60 1,061.73 992.08 923.92 993.41
Profit After Tax (PAT) 3,516.79 3,230.88 3,014.65 2,772.99 2,906.31
Dividend (including proposed dividend)
1,035.62 921.44 866.58 770.30 961.41
and tax thereon

Profit and Loss (Ratios)

Particulars 2018-19* 2017-18* 2016-17* 2015-16* 2014-15

Personnel expenses / Revenue (%) 67.56 70.86 68.88 67.70 64.53
Operating and other expenses / Revenue (%) 15.92 13.69 14.95 15.37 14.84
Profit before interest, depreciation and
amortization, exceptional item and 19.13 19.38 19.50 20.27 25.60
tax / Revenue (%)
Interest / Revenue (%) 0.009 0.003 0.003 0.004 0.02
Depreciation and amortization / Revenue (%) 4.67 5.22 5.18 4.28 4.96
Exceptional item / Revenue (%) - - 0.40 - -
Tax / Revenue (%) 4.00 3.50 3.45 4.00 5.25
PAT / Revenue (%) 10.45 10.65 10.47 11.99 15.37
ROCE (%)** 15.73 16.03 16.93 17.69 22.08

* Figures from FY 2015-16 to FY 2018-19 are stated as per Ind AS whereas the figures for FY 2014-15 are stated as per IGAAP.
**ROCE calculation is based on post tax return and average of opening and closing capital employed.

48 • Annual Report 2018-19

 Shaping the future of software driven business

Highlights (Based on consolidated figures)

Financial Year ending on March 31

Total Revenue Profit After Tax Earnings Per Equity

(After exceptional items) Share**
33,659.41
In ` Million

3,516.79
In ` Million
30,337.03

In `

3,230.88

43.99
28,784.39

3,014.65

40.39
2,906.31

2,772.99
23,123.31

37.68
18,912.52

36.84

34.74
2015 2016* 2017* 2018* 2019* 2015 2016* 2017* 2018* 2019* 2015 2016* 2017* 2018* 2019*

Fixed Assets Net Worth# Book Value per share#

(Gross block, including Capital
23,394.09

work-in-progress and intangibles In ` Million In `

295.68
under development)
21,245.60
14,489.99

In ` Million

265.90
18,968.38
13,782.44

16,504.58

237.41
12,691.97

14,055.29

206.31
11,168.67
9,423.72

175.69

2015 2016* 2017* 2018* 2019* 2015 2016* 2017* 2018* 2019* 2015 2016* 2017* 2018* 2019*

Dividend Payout Ratio^ Persistent Team

(Including trainees and associates) * Figures from FY 2015-16 to FY 2018-19 are
Percentages stated as per Ind AS whereas the figures
Numbers
for FY 2014-15 are stated as per IGAAP.

** EPS is computed after considering the

9,962

impact of exceptional item.

9,460
9,264
33.08

# Equity Share Capital, Reserves and

8,976
29.45

8,506
28.75

28.52

Surplus (excluding Gain on bargain

27.78

purchase) and Other Comprehensive

Income are considered for the purpose
of computing Net Worth and Book Value
per share.

^ Considering aggregate payout of dividend

and dividend distribution tax (including
proposed dividend and tax thereon).
2015 2016* 2017* 2018* 2019* 2015 2016 2017 2018 2019

Highlights • 49
Committees of the Board
As on June 11, 2019

Audit Committee Nomination and Stakeholders

Governance Committee Relationship Committee
Kiran Umrootkar
Chairman of the Committee Pradeep Bhargava Sanjay Bhattacharyya
and Independent Director Chairman of the Committee Chairman of the Committee
Pradeep Bhargava and Independent Director and Independent Director
Independent Director Dr. Anant Jhingran Dr. Anand Deshpande
Sanjay Bhattacharyya Independent Director Chairman and
Independent Director Prakash Telang Managing Director
Prakash Telang Independent Director Sunil Sapre
Independent Director Kiran Umrootkar Executive Director and
Independent Director Chief Financial Officer
Kiran Umrootkar
Compensation and Independent Director
Remuneration Committee Risk Management
Committee
Prakash Telang
Executive Committee
Chairman of the Committee Kiran Umrootkar
and Independent Director Chairman of the Committee Kiran Umrootkar
Roshini Bakshi and Independent Director Chairman of the Committee
Independent Director Pradeep Bhargava and Independent Director
Sanjay Bhattacharyya Independent Director Pradeep Bhargava
Independent Director Sanjay Bhattacharyya Independent Director
Guy Eiferman Independent Director Roshini Bakshi
Independent Director Sunil Sapre Independent Director
Thomas Kendra Executive Director and Sunil Sapre
Non-Executive Chief Financial Officer Executive Director and
Non-Independent Director Major General Amarjit Singh Chief Financial Office
(Veteran) Prakash Telang
Chief Information Officer Independent Directorr
Corporate Social
Responsibility (CSR)
Committee
Pradeep Bhargava
Chairman of the Committee
and Independent Director
Dr. Anand Deshpande
Chairman and
Managing Director
Prof. Deepak Phatak
Independent Director
Prakash Telang
Independent Director
 Directors’ Profiles

Dr. Anand Deshpande Christopher O’Connor Sandeep Kalra Sunil Sapre

Founder, Chairman and Executive Director and Executive Director and Executive Director and Chief
Managing Director Chief Executive Officer President, TSU Financial Officer

Dr. Anant Jhingran Prof. Deepak Phatak Guy Eiferman

Independent Director Independent Director Independent Director

Kiran Umrootkar Pradeep Bhargava Prakash Telang Sanjay Bhattacharyya

Independent Director Independent Director Independent Director Independent Director

Roshini Bakshi Thomas Kendra

Independent Director Non-Executive
Non-Independent Director
 Shaping the future of software driven business

in Mountain View California. Currently, he serves as

a Trustee of Persistent Foundation, and is a part-
Dr. Anand Deshpande
time Member of UIDAI, Government of India.
Chairman and
Managing Director Anand is a founding member of iSPIRT, India’s
first product think tank, started with the vision of
creating a vibrant entrepreneurial ecosystem in
India, and a founder member of Inter Institutional
Dr. Anand Deshpande is the Founder, Chairman,
Inclusive Innovations Center (i4C). i4C is an
and Managing Director of Persistent Systems since
independent, non-profit entity which acts as a
its inception and is responsible for the overall
platform to proactively scout, showcase, and
leadership, strategy, and management of the
handhold technology innovations, especially aimed
Company.
at the base of the pyramid.
Anand holds a B.Tech. (Hons.) in Computer Science
With members of his family, he has established the
and Engineering from the Indian Institute of
deAsra Foundation (www.deasra.in), a social venture
Technology (IIT), Kharagpur, and an M.S. and Ph.D.
that focuses on creating self-employment at scale.
in Computer Science from Indiana University,
Over the last four years, the deAsra Foundation
Bloomington, Indiana, USA. He has been conferred
has supported more than 25,000 entrepreneurs.
with an Honorary D. Litt. by Tilak Maharashtra
In 2018, his efforts were recognized by Forbes by
University, Pune in 2018.
including him in the Forbes Asia Philanthropy List.
As a true technology visionary, Anand’s
Anand is married to Sonali and they have a daughter
strengths lie in identifying and investing in next-
and a son.
generation technologies and encouraging internal
entrepreneurship to ensure that Persistent Systems
stays at the forefront of technology innovation. He
Christopher O’Connor
has been the driving force in growing Persistent
Systems from its inception in 1990, to the publicly Executive Director and
traded global Company of today. Chief Executive Officer

He has been recognized by his alma mater, IIT

Kharagpur, as a Distinguished Alumnus in 2012 and
Christopher (Chris) O’Connor is the Chief Executive
by the School of Informatics of Indiana University
Officer at Persistent Systems since February
with the Career Achievement Award in 2007. Prior
2019 and Executive Director since April 2019 and
to founding Persistent Systems, Anand began his
is responsible for the strategic direction of the
professional career at Hewlett-Packard Laboratories
Company.
in Palo Alto, California, where he worked as Member
of Technical Staff from May 1989 to October 1990. Until recently, Chris led the Internet of Things
business unit at IBM, including roles as its General
Anand has, over the years, served numerous
Manager, Head of Sales, and Head of all software
positions at various professional and non-profit
R&D. He has been the founding strategist, leader,
organizations viz. NASSCOM’s Executive Council,
and industry wide innovator of IBM IoT. His prior
ACM (Association for Computing Machinery) India,
roles in IBM have centered around building new
where he was the first President, SEAP (Software
businesses for IBM such as Systems Management,
Exporters’ Association of Pune), Pune Chapter of
IBM Commerce and Financial Software, and
CSI (Computer Society of India), CII’s Pune Zonal
founding the IBM Smart Cities software and services
Council, Executive Committee of MCCIA, the Dean’s
business. He also has led network hardware R&D in
Advisory Council in the School of Informatics,
the start-up community both exiting and returning
Computing and Engineering of Indiana University
to IBM in that tenure.
and as a Trustee in the Computer History Museum

52 • Annual Report 2018-19

 Shaping the future of software driven business

An alumnus of the Rutgers University, Chris holds

a dual Bachelor of Science degree in Electrical
Engineering and Computer Science. He has remained Sunil Sapre
academically active, achieving a management Executive Director and
certificate from the University of North Carolina Chief Financial Officer
and advanced management training from Harvard
University. He is a regular guest lecturer at Duke
University, Harvard University and a member of Sunil Sapre has been the Chief Financial Officer
the board of Computer Information Technology at (CFO) at Persistent Systems since December 1, 2015
Appalachian State University. and Executive Director on the Board since January
27, 2018.
Chris is a father to two daughters and is an outdoor
sports enthusiast. He holds a Bachelor’s degree in Commerce and is a
member of the Institute of Chartered Accountants
of India.
Sandeep Kalra As Chief Financial Officer of the Company, Sunil is
Executive Director and responsible for the treasury, financial reporting,
President, TSU taxation, and internal controls at Persistent
Systems. He also oversees the people functions in
the Company.
Sandeep is the President – Technology Services Prior to joining Persistent in June 2015, Sunil has
Unit at Persistent Systems and with his diverse had over 25 years of experience in the areas of
capabilities, he leads the Technology Services corporate finance, international and domestic
Unit and oversees its global sales and delivery taxation, and management accounting. He has
operations. The Board of Directors in its meeting worked with the L&T Group in various functions
held on June 11, 2019 appointed him as an Additional and his most recent role was with L&T Infotech
Director (Executive Member). where he was the head of finance and accounts for
He is an experienced leader in the Software global operations.
Services industry and is skilled in P&L Management, Sunil is married to Asha and they have a son.
Sales, Global Delivery, IT Strategy, and Outsourced
Product Development. He has vast experience in
working with Private Equity owned companies and
Mergers & Acquisitions. Dr. Anant Jhingran
Independent Director
Before joining Persistent, he was Senior
Vice President & General Manager – Digital
Transformation Solutions, HARMAN International
(A Samsung Company), focusing on next-generation Dr. Anant Jhingran has been on the Board of
solutions across Cloud, Analytics and Mobility for Persistent Systems from November 10, 2011 to
product companies and enterprises. November 3, 2016 and from November 21, 2017.
Prior to that, he held multiple leadership positions Dr. Anant Jhingran received his Bachelor of
at HCL Technologies, including Vice President, Technology degree in Electrical Engineering from
Healthcare and Emerging Markets and Vice IIT Delhi in 1985 where he was the recipient of the
President, LATAM and Canada. President of India’s Gold Medal. He subsequently
He is an alumnus of the Indian Institute of received his Ph.D. in Computer Science from the
Management, Calcutta with a Bachelor of Science University of California, Berkeley in 1990.
in Engineering in Electronics and Communication
from Jamia Millia Islamia University, Delhi.
Directors’ Profiles • 53
 Shaping the future of software driven business

Dr. Jhingran leads Products for API Management the Affordable Solutions Lab (ASL) at IIT Bombay in
@ Google. Prior to this role, he was the CTO at 2000. He held the ‘Subrao M. Nilekani’ Chair from
Apigee, which got acquired by Google in September 2000-2013.
2016. He joined Apigee from IBM where he was He has been an advisor and consultant to many
VP and CTO for IBM’s Information Management organizations and ministries on IT related matters.
Division. He is a data geek and is an expert in He has served on the boards of several companies
middleware too. and institutions, including IDBI Bank, Bank of
Dr. Jhingran is the world technology leader in Baroda, UTIISL, IDRBT, NIA, IGNOU, and NIT
the field of information management with highly Agartala. He currently serves on the boards of
demonstrated impact on industrial practice and HDFC AMC, MKCL, ReBIT, IBPS, and VJTI.
future technology and business directions. His He is regarded as the pioneer of Smart Card usage
achievements are well recognized by his peers, for financial transactions in India and, in 1999,
and by senior management at IBM having been he started an IT incubator to foster innovation
awarded IBM Fellow, IBM Distinguished Engineer, through start-up companies. In March 2012, he was
IBM Academy of Technology, several Outstanding given the responsibility to execute the prestigious
Achievement and Innovation Awards, and IBM Aakash tablet project. He has been an Open Source
Corporate Award. evangelist, and has popularized the use of open
He has also received several other awards including source knowledge content and software. An ardent
IIT Delhi Distinguished Alumnus Award, President’s advocate of life-long learning, he currently works
Gold Medal for highest GPA at IIT Delhi, IBM on Learner-Centric MOOCs (Massive Open Online
Academy of Technology, and has authored over Courses).
a dozen patents and over 20 technical papers, He is a recipient of the ‘Excellence in Teaching’
including frequent keynotes in industry and award and the ‘Industrial Impact Research
academic conferences. Award’ from IIT Bombay. He was elected Fellow
Anant is married to Renu and they have a son. of the Computer Society of India (CSI) in 1999,
and Fellow of the Institution of Electronics and
Telecommunication Engineers (IETE) in 2000.
He was listed among the ‘Fifty Most Influential
Prof. Deepak Phatak Indians’ by Business Week in 2009. He was
Independent Director conferred Life Time Achievement Awards by Skoch
Foundation in 2003, by Data Quest in 2008, by
Dewang Mehta Business School Awards in 2010,
Prof. Deepak B. Phatak has been on the Persistent by Interop in 2014, by IIT Bombay in 2014, and by
Board since April 24, 2018. CSI in 2018.

Prof. Phatak was the recipient of the Padma Shri Deepak is married to Pratibha and they have two
award in 2013. sons.

He received his Bachelor’s degree in Electrical

Engineering from Shri Govindram Seksaria Institute
of Technology and Science (SGSITS), Indore in 1969, Guy Eiferman
and his M.Tech and Ph.D from the Indian Institute of Independent Director
Technology (IIT), Bombay.
He has been associated with IIT Bombay since 1971.
He has headed several academic units, and was the Guy Eiferman has been an Independent Director at
first Dean of Resources of the Institute. He set up Persistent Systems since April 24, 2018.

54 • Annual Report 2018-19

 Shaping the future of software driven business

Guy Eiferman has a Masters in Operational Research Banking and Finance to study forex markets in the
& Engineering from École Centrale de Paris and UK and Europe.
an M.B.A. in International Trade from Sciences Po, Kiran has had a distinguished career at Standard
Paris. Chartered Bank, from where he voluntarily retired
He joined Merck & Co. in France in 1987 and, until his as the Executive Director – Treasury in 1993.
retirement in 2018, has held positions of increasing At Standard Chartered Bank, he specialized in
responsibility in Marketing, Business Development, foreign exchange and treasury operations and
and General Management both in Europe and in the was instrumental in building treasury operations
U.S. of the bank since its inception. During 1991-92, he
In July 2006, he was promoted to the role of was deputed to establish treasury operations of the
General Manager of the Atherosclerosis and bank in East and West Africa.
Cardiovascular Franchise with responsibility for Subsequently, he has worked with the Tata Group
the entire CV portfolio worldwide. In 2009, in his in India and was the Executive Director of Tata TD
position as Senior Vice President and Managing Waterhouse Securities, Director of Tata Finance
Director for Merck/MSD in France, he successfully Amex (a joint venture between Tata Finance and
led the $2 Billion and 3,000 employee organization American Express), and a Director of Tata Home
through profound restructuring and reorganization, Finance (a joint venture between Tata Home
following the merger between Merck and Finance and Abbey National Group, UK). During this
Schering-Plough. period, he was also Director of the Primary Dealers’
In January 2013, he led the MSD Mid-Europe region, Association of India.
a 20-country region in Europe. From 2014 to 2018, Until recently, Kiran was Director — Finance of
he was the Managing Director of a new entity, Jacobs Engineering India, which is a part of US-
wholly owned by Merck, named Healthcare Services based Fortune 500 Company. He is an Independent
& Solutions (HSS). Director in Saraswat Co-operative Bank Limited.
Guy is now teaching Digital Solutions in Healthcare Kiran is married to Sandhya and they have two
at Sciences Po in Paris and is consulting for and daughters.
advising healthcare stakeholders on both sides of
the Atlantic.
He is married to Noelle and they have three children.
Pradeep Bhargava
Independent Director

Kiran Umrootkar
Independent Director Pradeep Bhargava has been an Independent
Director at Persistent Systems since April 2012.
He holds a Bachelor’s degree in Science (Honors)
Kiran Umrootkar has been an Independent Director from Rajasthan University, Jaipur; B.E. in Electronics
at Persistent Systems since August 2010. and Communication from the Indian Institute of
Kiran holds a Bachelor’s degree in Commerce Science, Bengaluru,w and PGDBA from the Indian
(Honors) and a Bachelor’s degree in Law. He is Institute of Management, Ahmedabad.
a Fellow of the Indian Institute of Banking and Pradeep has worked in leadership positions in both
Finance and is a Member of the Chartered Institute state and private enterprises in fields ranging from
of Personnel and Development, U.K. He was the consumer, industrial, and energy sectors. He has
recipient of the Lord Aldington Banking Research worked with the Atomic Energy Commission, BHEL,
Fellowship awarded by the Indian Institute of Bharat Forge Group, and General Electric before

Directors’ Profiles • 55
 Shaping the future of software driven business

joining Cummins in 2000. He steered the power cost reduction drive which helped Tata Motors
generation business of Cummins in India until his achieve a major turnaround about a decade earlier.
retirement in 2012. Prakash is the Chairman of Kennametal India and
Pradeep is an independent director on the Board of TEMA India. He also serves as a Director on the
several companies including Automotive Stampings Boards of Cummins India Ltd, SKF India Ltd., and
and Assemblies Limited, Himatsingka Seide (Meter Lokmanya Hospitals Pvt. Ltd.
Company in Jaipur, Torrent Pharma), and Pragati Prakash is married to Anjali and they have two
Leadership. He was elected as the President of daughters.
Mahratta Chamber of Commerce Industries and
Agriculture, Pune for the period 2018-20. He has
been active on industry forums and was Chairman
(Western Region) of the Confederation of Indian Sanjay Bhattacharyya
Industries (CII). He is also a Trustee of Persistent Independent Director
Foundation formed by Persistent Systems.
Pradeep is married to Abha and they have a son
and a daughter. Sanjay Bhattacharyya has been an Independent
Director at Persistent Systems since May 2011.
Sanjay holds a Bachelor’s degree in Arts with
Prakash Telang Economics (Honors) from the Delhi University and
Independent Director is a Certified Associate of the Indian Institute of
Bankers (CAIIB) recognized by the Indian Institute
of Banking and Finance (IIBF).

Prakash Telang has been an Independent Director Sanjay has extensive experience in the banking
at Persistent Systems since August 2010. and finance industry, especially leading the
bank in complex transaction situations affecting
Prakash holds a Bachelor’s degree in Mechanical both the top-line and bottom-line, regulatory
Engineering from Nagpur University and a Post compliance, international, and corporate banking
Graduate Diploma in Business Administration from across geographies, retail banking, credit and
the Indian Institute of Management, Ahmedabad. risk management, liability management, capital
He has been recognized as ‘Distinguished Alumnus’ structure and liquidity, impact on earnings per
by both institutes in their respective Golden Jubilee share, shareholders’ disputes, and human resource
years. management.
Prakash worked for three years with Larsen & Sanjay joined State Bank of India as a Probationary
Toubro. Thereafter, he completed his PGDBA from Officer in 1972 and has had an illustrious career
IIM Ahmedabad in 1972 and joined the Tata Group there eventually retiring as the Managing Director
through the prestigious Tata Administrative Service and the Chief Credit and Risk Officer. During
(TAS) and retired in June 2012 after four decades of his tenure with SBI, he held several important
meritorious service finally retiring as the Managing positions, including those of Chief General Manager
Director (India operations) at Tata Motors. at Hyderabad Circle and DGM (Vigilance) at Chennai
During his tenure at Tata Motors, he was responsible Circle, Chief Executive Officer (CEO) of State Bank
for driving new product developments for both of Bikaner & Jaipur (SBBJ) and SBI (International),
commercial vehicles and passenger vehicles. He set Mauritius.
up greenfield plants both in India and abroad, and
was a member of the team responsible for major
acquisitions abroad. He is credited with the massive

56 • Annual Report 2018-19

 Shaping the future of software driven business

He was a Member of the Basel-II Implementation

and Risk Management Committee of Indian Banks
Thomas Kendra
Association (IBA) and Member of the Expert
Committee on Banking & Finance of ASSOCHAM. Non-Executive
Non-Independent Director
Sanjay is married to Rita and they have a son.

Thomas (Tom) Kendra has been a Director at

Persistent Systems since January 2016.
Roshini Bakshi
Independent Director He holds a Bachelor’s degree in Arts in Business
Administration from the Indiana University in
Bloomington, Indiana, USA.
Tom was Vice President and General Manager of the
Roshini Bakshi has been an Independent Director at
Systems Management business with Dell’s Software
Persistent Systems since July 2014.
group, from where he retired in September 2015.
Roshini holds a Bachelor’s degree in Economics Previously, Tom served in various positions at
from Delhi University and a Master’s degree in CA Technologies (formerly CA, Inc.) including as
Business Administration from the Indian Institute of Executive Vice President of Enterprise Products,
Management, Ahmedabad. and, prior to that, he was Group President of
Roshini has an impressive track record in consumer Security and Data Management Group at Symantec
industries, setting strategy for creative consumer- Corporation. He joined Symantec after a 26-
driven services and improving operational year career at International Business Machines
effectiveness to create greater financial returns. Corp. (IBM), where he served as Vice President of
She has also worked across diverse sectors including Worldwide Server Sales, Vice President of Software
financial services and information technology. She in Asia Pacific, and Vice President of Software for
was voted one of the Top 50 Powerful Women the Western United States, among other leadership
Managers in India by Impact Awards in 2014. positions.
Roshini is the Managing Director (Private Equity) at Tom serves on the Board of Directors of ChiroTouch
Everstone Capital Asia Pte. Ltd., based in Singapore and previously served as a Director of Pareto
and India. She was the Vice President and Managing Networks, Inc. and RightNow Technologies Inc. and
Director for the Walt Disney Company’s consumer was a Member of the Advisory Board at Avangate
business for South Asia, where she was responsible B.V. Currently, he is on the Dean’s Advisory Board
for setting up and growing the business to more for the School of Informatics, Computing and
than USD 200 Million in revenue. Some of her earlier Engineering at Indiana University, USA.
positions were with Unilever, American Express, Tom is married to Anne-Marie and they have a son
Mattel, and Polaris, where she led marketing and and a daughter.
business roles.
Roshini supports St. Jude India Child Care Centers,
and is a mentor with Endeavor in Indonesia.
Roshini is married to Hemant and they have
two sons.

Directors’ Profiles • 57
 Shaping the future of software driven business

Awards and Recognitions

AIconics award for Best IBM Innovation Award

Application of AI in for Humanoid Concierge
Financial Services Solution Using Watson IoT

Recognized amongst the Recognized as an

leading players in ‘Zinnov Innovator in Avasant’s
Zones for Digital Services Internet of Things Services
– 2019’ Report RadarView™ Report

Positioned as ‘Rising Star’ Persistent Systems’ IoT

for Salesforce Professional Leadership Recognized in
Services in ISG Provider Zinnov Zones 2018 – IoT
Lens™ 2019 Report Technology Services Report

Positioned in the Leadership Recognized in the Winner’s

Zone in “Zinnov Zones 2018 – Circle by HFS Blueprint
ER&D Services” for Enterprise Report for Software
Software and Consumer Product Engineering
Software verticals Services

58 • Annual Report 2018-19

Ranked amongst the 1st Runner up in National HR Circle Competition, 2018 amongst
2019 Training Top 125 16 org under Employee Engagement and Relations category
Organizations (Large services companies)

TISS- LEAPVAULT AWARD for India’s Coding Power

Best Corporate University House’ 3 consecutive
Recognizes Persistent for TISS- LEAPVAULT AWARD for year 2014 – 16. Among
having used marketing Best Virtual Learning Program top 5 in 2018
communications effectively
in attracting talent, retaining
talent, developing talent,
and in retention policy

Nagpur Best Employer

Brand Awards 2018  to
Persistent Systems
(Computer Software First prize for the Wellness Winner of the “Golden
Sector) for using effective and Wellbeing Award Peacock National Training
marketing communications category at the Future of HR Award” for the year 2019
in talent management Summit and Awards, 2018

iNFHRA’s FM EXcellence
Award 2018-19 for
Ecological Sustainability

Awards and Recognitions • 59

Shaping the future of software driven business

Corporate Social
Responsibility
 Shaping the future of software driven business

Message from the We decided to take up Health as our focus area to

be able to provide healthcare facilities to people for
Chairperson whom going to the doctor is the lowest priority. We
started out with doing Breast Cancer screenings
for women, health check ups for school children,
and distribution of spectacles to senior citizens.
Ten years later, we have progressed to providing
artificial limbs to physically disabled individuals,
helping them become useful members to their
families. Getting cleft lip and palate repair surgeries
done on babies born with this disfigurement and
being able to give them an opportunity to enter
mainstream society after being shunned, has
been a very emotionally fulfilling experience. The
cataract surgeries on senior citizens have helped
give them a new lease of life. The specialized
pediatric surgeries, dialysis sessions, a blood bank,
breast cancer treatment for women, and mobile
medicare vans in villages are some of the many
medical services we have been able to provide. Our
work done with school children shows improved
health parameters, better attendance in class, and
more concentration in general.
Education is a field in which the more you do, the
“The Persistent Foundation completes a decade more you need to do. We began with sponsoring
of commitment towards society.” These words the education of school students and awarding
ring in my ears and fill me with gratitude, humility, scholarships to girls to pursue their engineering
satisfaction, contentment, and also pride. Looking degrees. These programs have blossomed into our
back, I take immense pleasure in all the work that biggest and most successful ones till date. Along with
we have been able to accomplish in this period of providing financial support, we are now also able to
a decade. I am able to measure the impact that provide guidance, training, and mentorship to these
we have achieved because most of it has been students, thus helping in their holistic progress
tangible. This decade has certainly been one of and development. These interventions have shown
learning and experimenting, and one of tremendous better and improved scholastic performances of
personal growth. school students. The girls show excellent results
in placements and future career prospects. The
Over the last ten years, we have come a long
concept of Study Centers has been pioneered by
way towards fulfilling our Corporate Social
us. With our intervention, students are able to study
Responsibility. We started out taking tentative steps
better and improve their academic scores. These
which have now become bigger, bolder, and more
results have indeed been very encouraging for us.
confident. These steps were in the right direction,
which has been endorsed by the findings of the Pune is surrounded by villages. Hence, Community
Impact Assessment Study. Our Charter consists Development was an obvious thought. Over the
of three focus areas — Health, Education, and last decade, we have been able to construct wells
Community Development, which were decided for easy access to drinking water. We have also
upon after research and discussions with the empowered the farmers and the local population
Board of Trustees. to help build check dams and widen and deepen

Corporate Social Responsibility • 61

 Shaping the future of software driven business

canals and streams. This has helped enable more As a result of these Herculean efforts contributed
water storage during the rains and increase in by everyone, the Foundation has received many
the groundwater table. These initiatives have accolades and prestigious Awards.
shown very encouraging and tangible results. Most 1. Best Corporate Social Responsibility Practices
villages are more prosperous, more aware, and by Global CSR Excellence & Leadership Awards
knowledgeable about proper use of water, and are in 2012.
able to cultivate an extra crop. The stored water
also lasts for a longer period and can be used for Best CSR Strategy by India Human Capital
2. 
most part of the summer as well. Awards 2012.

The Foundation’s initiative of construction of Solar Award for HR Practices in Corporate Social
3. 
PV plants at Pune and Nampalli railway stations has Responsibility by ET NOW Talent HR Leadership
profitably helped the Railways save a significant in 2013.
amount of money in terms of consumption 4. L
ate Shri. B.G. Deshmukh IAS, Corporate of
of electricity. Social Responsibility Excellence Award by
Tree plantation has also been a very rewarding MCCIA in the year 2017.
activity. We have seen enthusiastic participation 5. CSR Award — Environment & Sustainability by
from the employees and their families. We feel good HYSEA in the year 2017.
that we have contributed in a significant manner
The Board of Trustees is a very significant part of
towards making Mother Earth greener.
the Foundation. Each Trustee has individually been
The Foundation team is a very young, energetic, a guide and mentor to us and has given timely
and dedicated group who is forever looking out advice and suggestions whenever any of us has
for new and interesting projects that we can be a needed them. I am truly indebted to them for their
part of. It has been their hard work and integrity close involvement in the proceedings and for their
that have brought us to this point of success. timely encouragement and appreciation of our
The team members at our locations in Nagpur, efforts.
Goa, Hyderabad, and Bengaluru, have been our
Looking forward, I feel extremely energized,
Ambassadors and have motivated their colleagues
invigorated, and motivated to take the Foundation
through the monthly donation drives and the
forward towards the next decade of operations.
various volunteering activities conducted at their
I sincerely believe that we are ready and restless
respective centers. They have been pioneers of the
to take on the society and the world at large. I feel
concept of Individual Social Responsibility.
no project is too small or no cause too big. We are
Here, I would like to acknowledge the contribution ready to face all adversities and are well equipped
of the employees of Persistent Systems. Over the to overcome any challenges that come our way; to
years, they have played a key role in shaping the overcome them and move towards our goals. We
size and scope of many of the projects we have are inspired by the good and noble people around
undertaken. The financial contribution has been us and we aspire to do our best to reach higher
tremendous and overwhelming. The hours they and conquer the skies. I have unshakable faith that
have contributed to volunteering towards projects the Foundation will continue to do more exemplary
has been sincere and committed. As a result, we work in the future and make all of us proud of being
have been able to achieve greater impact. Our a part of the Persistent family.
volunteering commitment is truly noteworthy, and
I truly believe that employees are the true assets Thank you,
of any organization aspiring to achieve excellence
Sonali Deshpande
in CSR.
Chairperson, Persistent Foundation

62 • Annual Report 2018-19

 Shaping the future of software driven business

Committed to Change:
Persistent Foundation Trustees

Sonali Deshpande Dr. Anand Deshpande P. B. Kulkarni

Founder Trustee and Founder Trustee Founder Trustee
Chairperson

Pradeep Bhargava Dilip Kale

Trustee Trustee

Sameer Bendre Capt. Kedar Paranjpye Sunil Sapre

CPO, Persistent Systems CAO, Persistent Systems Executive Director and CFO
Trustee (ex officio) Trustee (ex officio) Persistent Systems
Trustee (ex officio)

Corporate Social Responsibility • 63

 Shaping the future of software driven business

Established in 2009 with a vision to extend support in three focus areas – Education, Health, and
Community Development – Persistent Foundation completes a decade of its services in 2019.
The Persistent Foundation, together with its partners, has implemented 105 unique projects
across five locations in India (Pune, Nagpur, Hyderabad, Bengaluru, and Goa), touching 3,50,000
lives as of the year 2018-19.

10 Years Journey of Persistent Foundation

10 Projects 1,401 Employee Engagement 2009
14,382 Beneficiaries
2014 16 Projects 3,004 Employee Engagement
Formally established Persistent Foundation. Initiated work
53,136 Beneficiaries
in Pune, Nagpur, Hyderabad, and Goa in three thrust areas
Health, Education, and Community Development Alignment of projects with National Goals - Swachh
Vidyalaya Abhiyan, supported 110 municipal schools.
Focus on Education - Support for infrastructure
development in special schools
17 Projects 1,484 Employee Engagement 2010
7,204 Beneficiaries
Launched Website and Logo. Initiated Flagship project - 2015 19 Projects 2,968 Employee Engagement
Kiran Girls Scholarship program with 10 girls 52,702 Beneficiaries
Alignment with National Goals - Water Conservation.
Value add for improving quality of project.
Education - Initiated residential mentoring program
17 Projects 2,692 Employee Engagement for Kiran Girls Scholarship program
2011
23,904 Beneficiaries
Initiated the work in Bengaluru. Expanded the work 2016 33 Projects 2,809 Employee Engagement
in Rural areas. Initiated projects with the Government 48,144 Beneficiaries
department - Pune Police Alignment with National Goals - Skill Development/
Support for livelihood projects as one of the major
project in urban areas
17 Projects 2,743 Employee Engagement 2012
30,660 Beneficiaries
2017 30 Projects 3,235 Employee Engagement
Education - Supporting 2 special schools. Community
36,543 Beneficiaries
Development - Expanded the drinking water project,
covered 6 villages Alignment with National Goals - Skill Development/
Support for livelihood projects as one of the major
project in rural areas along with enhancing school
infrastructure in rural areas
23 Projects 3,358 Employee Engagement 2013
42,413 Beneficiaries
Completed 5 yrs of establishment. 2018 33 Projects 4,613 Employee Engagement
43,120 Beneficiaries
Health initiative - Initiated work in Child and Geriatric Care,
Mobile Medical Unit in rural India. Donated a mobile Blood 3 High impact projects adopted as Flagship,
Donation Van. Education - Expanded the program of Kiran will be concentrating resources in these three areas.
Girls Scholarship program had 31 girls on board. Initiated Education - Kiran Girls Scholarship program.
the work with 1 Special School. Health - Support to Pediatric surgeries/Facial Cleft.
Community Development - Initiated the work on Drinking Community Development - Integrated Watershed
water in 1 village. Supported NGOs for digitization of data Development program

64 • Annual Report 2018-19

 Shaping the future of software driven business

Highlight of the Year 2. The activities of the Foundation have had

a significant impact. These activities are
continuous, genuine, and in line with the CSR
policy.
3. There is 100% compliance with the CSR
mandate under Section 135 of the Companies
Act 2013 since the Act was introduced.
The agency shared its recommendations with
us. The three most significant of these were:
• Consolidate projects. Reduce the number of
projects to three per theme, not based on
impact scores, but on the projects’ potential
for creating shared value.
• Use a combination of hardware and software
to create tangible and intangible impacts.
One of the Foundation’s core values is to strive • 
Create a 5-year roadmap with an annual
to achieve excellence in everything that we do. budget release based on performance.
The steps we took towards this received formal
Based on the recommendations of the agency,
recognition in the year 2018-19. A third-party
we are making changes to our strategy during
impact assessment was conducted this year,
the planning process for the year 2019-20.
analyzing all the Foundation’s projects so far
Here are the highlights:
as it completes its tenth year of CSR work. This
assessment was carried out through the agency 1. Education: defined age group for intervention
Chhaaya Strategic Advisors LLP. - standard 7 and above. The Foundation to
focus more on improving qualitative aspects.
The study covered:
2. Health: started implementing flagship
Location No. of No. of No. of
Projects representatives employees
projects in ‘project mode’, added on as
interviewed from interviewed support services as part of our projects.
associated
3. Community Development: an integrated
NGO’s/partners
and beneficiaries
approach to our Watershed Projects, increasing
in person the scope of our Skill Development Projects.
5 54 300 714
Education
The study appreciated the Persistent Foundation
as the CSR arm of Persistent Systems. These
were the top three observations made: In the thrust area of Education, Persistent
Foundation has a strong presence in all five of
1. T
he Foundation has a clear purpose and
its locations. The needs of students at different
visionary leadership. It is led by visionary
stages of education from Pre-Primary to
trustees. Not only are these leaders
Engineering are addressed under this thrust
accomplished professionals, but they are also
area. In the year 2018-19, we were able to reach
passionate and dedicated to the cause of
out to 6,106 students and 38 teachers through
nation-building.
13 initiatives.

Corporate Social Responsibility • 65

 Shaping the future of software driven business

4435 No. of beneficiaries covered In addition to the scholarship, we provide all

onboarded students with one-on-one mentoring.
1150 1100 We also have a residential mentoring program,
540 which both students and mentors look forward
250 166 141
to. Of 28 girls who graduated this year, 21 have
Integrated Cyber Study Green Rural Kiran Skill
School Champ Center School Science Girls SS Dev.
successfully found job placements.
Dev. Prog. Support Initiative Center Prog. Prog.
Employees’ Contributions to the Cause of
Education
No. of beneficiaries covered (contd.)
Education has always been an area supported by
43 38 32 32 32 20
Persistent Systems employees whole-heartedly
through their skills, time, and money.
Support Teachers Early Student Support to Const. of
for Trans. Training Prog. Intervention Sponsorship Matrushakti Anganwadi
for hearing Prog. Kalyan Cen.
Out of 3,383 volunteers in FY 2018-19, 1,789
Impaired (52.88%) volunteered for 2,364 hours to further
the cause of Education.
There are 15 schools, 25 study centers, and 50+
Out of 5,548 donors in FY 2018-19, 1,708
colleges involved. We reach out to them with our
(30.78%) donated ` 26.97 lakhs.
14 NGO partners. All drives under the thrust area
of Education aim at: Employee Contributions towards
• Improving the quality of education through the Cause
various intervention and mentoring programs No. of Employees Students Benefited Amount

807
• Offering financial support to students for the
completion of their education
• 
Providing support for infrastructure 340
275
development
25 18.17
1.57
• Helping students get opportunities for their
overall personality development Support for the cause of Student Sponsorship Program
girls education
• 
Improving employability through skill-
development programs Employee Contributions towards
Kiran Girls’ Scholarship Program the Cause (contd.)
No. of Employees Students Benefited Amount
This is the flagship program of Persistent
Foundation. It aims at enabling girl students 1614
from underprivileged sections of society to
pursue further studies in Computer Science and
Information Technology. The objective of this
program is to transform them into educated, 446
confident, skilled, and highly employable young
women. This year 1,300 girls across five locations
applied for the scholarship. After meeting our 180 200
6.30 0.93
selection criteria and going through our selection
process, 55 students were onboarded. School Kit Drive School Health Program

66 • Annual Report 2018-19

 Shaping the future of software driven business

Health: Breathing New Life into Health Facial Cleft Repair Surgeries: Spreading
Smiles, Spreading Awareness
Care for the Young and Old
In 2018-19, we supported 514 patients. The
youngest patient was a month old, and the oldest
patient was 38 years old.
Location Target No. No of No of
of Patients Patients Camps
Maharashtra 142 171
Bengaluru 25 22 11
Goa 35 23 7
Hyderabad Facial Cleft 300 284 22
Hyderabad Facial Cleft 15 14
(Max)
Total 517 514 40
At the Persistent Foundation, health care for
children, women, and senior citizens is a key focus. In Goa, we accelerated our efforts with the help
We implement our programs in partnership with of 5 doctors, completing 23 surgeries in the
hospitals and NGOs who share the Foundation’s course of a 7-day camp.
objectives. Right from the start, the Foundation’s
energies were directed to curative health care, Employees’ Contributions to the Cause of
with the following rationale: Health

a) The high costs of curative medical services Out of 3,383 volunteers in FY 2018-19, 361
(10.67%) have volunteered for 337.5 hours for
b) 
The lack of access to high-tech curative
the cause of Health.
services
In the area of Health, 4 donation drives were
In the year 2018-19, we were able to reach out to
launched in line with the projects implemented
7,871 patients, through 12 initiatives implemented
by the Foundation. Out of 5,548 donors in FY
in partnership with 17 partners across 5 locations.
2018-19, 580 (10.45%) have donated ` 8.30 lakhs.
No. of beneficiaries covered Employee Contributions towards
1714 the Cause of Health
1111
No. of Employees Students Benefited Amount
514 858
44 29

Paediatric Facial Squint Cataract Mobile

Surgery Cleft Repair Correction Surgery Medical
303
Surgery Surgery Unit 132
87
1.97 3.01
3441 No. of beneficiaries covered (contd.) Supporting Cataract Surgeries Supporting Dialysis Sessions

Employee Contributions towards

605 the Cause of Health (contd.)
280 No. of Employees Students Benefited Amount
30 120
3
131 107
90 2.77 59
Dialysis Jaipur Physio- Cancer Individual Health 0.54
Support Foot therapy Treatment Medical Check-up
Center Cases camp at
Supporting Jaipur Foot Celebrating International Women’s Day
Maval

Corporate Social Responsibility • 67

 Shaping the future of software driven business

Community Development: Growing dams. The work was completed in 2 villages. We

were able to reach out to 3,910 farmers, achieving
Stronger by Coming Together
a positive impact on 2,640 hectares of land.
Open well construction projects in remote
Under the area of community development,
areas: To date, Persistent Foundation has
initiatives are deployed based on a need
supported the construction of 18 wells in
assessment of urban and rural communities.
partnership with Jana Praboshini and Toran
Each of these initiatives has a community
Rajgad Parisar Nyas. In FY 2018-19, as it was
participation component both in the planning
adopted as a flagship project, 11 open wells were
and implementation of the project.
constructed in a year.
Employees’ involvement in community
development initiatives
Out of 3,383 volunteers in FY 2018-19, 954
(28.20%) spent 2,217 volunteer hours on various
Community Development drives.
In the area of Community Development, we
launched 7 donation drives in line with the
projects implemented by the Foundation. Out
of 5,548 donors in FY 2018-19, 2,867 (51.68%)
donated ` 57.15 lakhs.
Addressing a Basic Need: Water
Water, a transparent, tasteless, odorless, and Employee Contributions towards
nearly colorless chemical substance is the the Cause
primary constituent of human life. No. of Employees Patients Benefited Amount

As part of our community development efforts, 960 872

the Foundation addresses this need through
these two flagship initiatives:
243 250
2.42 30.48 15 15.18
0
Tree Plantation Kerela Floods Support for
Relief CRPF Jawans

Employee Contributions towards

the Cause (contd.)
No. of Employees Patients Benefited Amount
278
250

250
237
187

Watershed projects in rain shadow areas:

150

150
0.83
90
3.41

3.17
1.66

Through these projects, we undertook a total

of 17.38 km of desilting, 35,500 cum desilting of Open Well The Joy of Giving Semicolons Support for
Projects Hackathon Snehavan
percolation tanks, and the construction of 2 check

68 • Annual Report 2018-19

 Shaping the future of software driven business

Employee Engagement

Year-on-Year Volunteering
2017-18 2018-19
5366
4838

3306
2412 2282
1592

45 40
Volunteering Total Volunteers Unique Volunteering
Drives Volunteers Hours

Year-on-Year Donation Drives

2017-18 2018-19
11501

7911
5546
4809
2439
1689
12 17
Volunteering Total Volunteers Unique Volunteering
Drives Volunteers Hours

Corporate Social Responsibility • 69

 Persistent Systems Limited
CIN: L72300PN1990PLC056696

Regd. Office
Bhageerath
402 Senapati Bapat Road,
Pune 411 016, India
Tel: +91 (20) 6703 0000
Fax: +91 (20) 6703 0009

Pune Goa
Aryabhata-Pingala Bhaskar-Charak
9A/12, Kashibai Khilare Marg, L-44, Unit 1, Software Technology Park,
Erandawana, Pune 411 004 Verna Industrial Estate, Verna, Salcete,
Tel: +91 (20) 6703 3000 Goa 403 722 • Tel: +91 (832) 675 3333
Fax : +91 (20) 6703 4001
Rigveda-Yajurveda-Samaveda-Atharvaveda
Hyderabad
Plot No. 39, Phase I,
Rajiv Gandhi Information Technology Park, 11th and 12th Floor of WaveRock Building,
Hinjawadi, Pune 411 057 Survey No. 115 (part) TSIIC IT / ITES SEZ,
Tel: +91 (20) 6798 0000 Nanakramguda Village, Serilingampally Mandal,
Fax: +91 (20) 6798 0009 Hyderabad 500 008
4th and 5th Floor, Building No. IT 3, Tel: +91 (40) 6722 9555, +91 (40) 6606 0000
Qubix Business Park Private Limited Fax: +91 (40) 6606 0100
Zone Number C-1, Special Economic Zone,
Survey No. 154/6, Rajiv Gandhi Infotech Park,
Hinjawadi, Pune 411 057 Nagpur
Tel : +91 (20) 6798 3500
Gargi-Maitreyi

Bengaluru Plot No. 8 and 9, IT Park,

MIDC Parsodi, Nagpur 440 022
4th and 5th Floor, Block 9, Tel: +91 (712) 669 2000 • Fax: +91 (712) 669 1111
Primal Projects Pvt. Ltd. SEZ (PRITECH PARK), 2nd and 3rd Floor, Infotech Tower, IT Park,
Survey Nos. 51 to 64/4 & 66/1, M.I.D.C., Parsodi, Nagpur 440 022
Belandur Village, Varthur Hobli, Tel: +91 (712) 673 2321 • Fax: +91 (712) 669 1111
Bengaluru East Taluk, Bengaluru Urban 560 103
Tel: +91 (80) 6772 1001, +91 (80) 6135 9301

70 • Annual Report 2018-19

 Shaping the future of software driven business

UK
Germany
Canada Ireland Switzerland
France The Netherlands
Israel Japan
USA

Mexico India
Malaysia
Singapore
Sri Lanka

South Africa Australia

Global Locations Ontario

Persistent Systems Limited
C/o Miller Thomson LLP
Australia Scotia Plaza, 40 King Street West, Suite 5800
C/o. Company Matters Pty Limited Toronto, ON M5H 3S1, Canada,
Level 12, 680 George Street, Sydney NSW 2000, Tel: +1 416 597 4398 • Fax: +416 595 8695
Australia • Tel: +61 (02) 9375 7985 Quebec
Fax: +61 (02) 9287 0350 Persistent Systems Limited
C/o Miller Thomson LLP
Canada 1000 De La Gauchetière Street West
Suite 3700 Montréal, QC H3B 4W5
British Columbia
Persistent Systems Limited
C/o Miller Thomson LLP France
Pacific Centre, 400-725 Granville Street Persistent Systems France S.A.S.
Vancouver, BC V7Y 1G5, Canada Registered Office: 53 avenue Hoche,
Development Centre 75008 Paris, France
Persistent Systems Limited Branch Office: 1 Rue Berlioz, 38600 Fontaine,
515 Legget Drive, Suite 920 Grenoble, France
Ottawa, ON, K2K 3G4 Canada Tel : +33 (4) 7653 3580 Fax : +33 (4) 7653 3589

Global Locations • 71
 Shaping the future of software driven business

Germany Malaysia
Persistent Systems Germany GmbH Persistent Systems Malaysia Sdn. Bhd.
Lyoner Straße 14, 60528 Frankfurt am Main, 601 Level 6, Uptown 1, 1 Jalan SS21/58,
Germany • Tel: +49 (0) 69 66 55 41 90 Damansara Uptown, 47400 Petaling Jaya,
Fax: +49 (0) 69 66 55 41 91 Selangor Darul Ehsan, Malaysia
Tel: + 603 766 38 301 • Fax: + 603 761 00 993
PARX Consulting GmbH
An der Alster 62, 20099 Hamburg
Tel: +49 40 232 05 4000 Mexico
Fax: +49 40 232 05 4001 Persistent Systems Mexico S.A. de C.V.
Uhlandstraße 175, D-10719 Berlin Registered Office: C/O Greenberg Traurig, S.C.
Tel: +49 30 201 69 6060 Av. Paseo de la Reforma No. 265, PH1
Fax: +49 30 201 69 6061 Col. Cuauhtémoc, Del. Cuauhtémoc
Elsenheimerstraße 1, 80687, Munich C.P. 06500, Ciudad de México, D.F.
Tel: +49 89 700 74 0130 Development Centre: Lopez Mateos Sur 1450
Fax: +49 89 700 74 0131 Piso 2 - Plaza LasVillas
Tlajomulco, Jalisco, 45640
Ireland
Aepona Group Limited Singapore
Unit 11 Burnell Court, Northern Cross, Persistent Systems Pte. Ltd.
Malahide Road, Dublin D17F436, Ireland Co. Reg. No. 200706736G
8 Shenton Way, # 21-07 AXA Tower,
Israel Singapore 068811
Tel : +65 6223 4355 • Fax : +65 6223 7955
Persistent Systems Israel Ltd.
Registered Office: C/o Koren - Grodberg & Co.
Law Offices, 6 Wissotzky St. Tel Aviv Sri Lanka
Israel 6233801 Persistent Systems Lanka (Private) Limited
Tel: 972-(0)3-6042323 • Fax: 972-(0)-3-6044222 4th Floor, 123, Bauddhaloka Mawatha,
Development Centre: 3, Pekeris Street, Colombo 14, Sri Lanka Phone: +94 (11)
Tamar Park, Ruhrberg Science Centre, 2510300 • Fax: +94 (11) 2510301
Rehovot 76121, Israel
South Africa
Japan Persistent Systems Limited
Persistent Systems Limited Spaces, Design Quarter, Leslie Road,
2-21-7-703 Kiba, Koto-ku, Tokyo 135-0042, Japan Fourways, Johannesburg 2191, South Africa
Tel: +81 (3) 5809 8444 • Fax: +81 (3) 5809 8445 Tel: +27 (0) 11 513 3118 • Fax: +27 (0) 86 646 7610

72 • Annual Report 2018-19

 Shaping the future of software driven business

Switzerland Development Centre: 515 Legget Drive,

Suite 920, Ottawa, ON, K2K 3G4, Canada
PARX Werk AG
Birmensdorferstrasse 108, 8003 Zürich Persistent Telecom Solutions Inc.
Tel: +41 43 500 97 00 • Fax: +41 43 500 97 01 Registered Office: 2055 Laurelwood Road,
Suite 210, Santa Clara, CA 95054, USA
Av. de la Rasude 2, CH-1006 Lausanne
Tel: +1 (408) 216 7010 • Fax: +1 (408) 451 9177
Tel: +41 21 533 5940 • Fax: +41 21 533 5941
Branch Offices:
Dublin
The Netherlands
5080 Tuttle Crossing Blvd. Suite 150
Persistent Systems Limited Dublin, OH 43016. • Tel: +1 (614) 763-6500
WTC Tower B – 9th floor
Strawinskylaan 937 Herald Technologies Inc.
1077 XX Amsterdam, The Netherlands 2055 Laurelwood Rd Ste 210
Tel: +31 (20) 312 1212 • Fax: +31 (20) 312 1210 Santa Clara, CA 95054, USA
Irvine
United Kingdom 15375, Barranca Parkway, Ste A -205,
Irvine, CA 92614, USA
Aepona Limited
Charles House 1st Floor, Littleton
103-111 Donegall Street, Belfast, Northern Ireland, 1 Monarch Drive, Littleton,
BT1 2FJ United Kingdom MA 01460, USA,
Phone: +1 (978) 224-7058
Development Centre – Edinburgh
Regus 83 Princes Street New Jersey
Edinburgh, EH2 2ER, Midlothian 555 U.S. Highway 1 South, Ste 415
Scotland, UK Iselin, NJ 08830, USA
Persistent Systems Limited Philadelphia
184 Shepherds Bush Rd, Hammersmith, London 3711 Market St, 8th Floor, Cube # 7
W6 7NL, United Kingdom Philadelphia, PA 19104
Tel: +44 (0) 20 3008 7203 Raleigh
3005 Carrington Mill Blvd., Ste 175,
USA Morrisville, NC 27560, USA

Persistent Systems Limited, USA Branches Seattle

Santa Clara: 2055 Laurelwood Road, Suite 210, 3380 146th Pl SE, Suite 220, Bellevue,
Santa Clara, CA 95054, USA WA 98007, USA
Tel: +1 (206) 707 8250
North Carolina: 160 Mine Lake CT Suite 200,
Raleigh, North Carolina 27615-6414, Wake, USA

Persistent Systems Inc.

Registered Office: 2055 Laurelwood Road,
Suite 210, Santa Clara, CA 95054, USA
Tel: +1 (408) 216 7010 • Fax: +1 (408) 451 9177

Global Locations • 73
 Shaping the future of software driven business

Corporate Information
As on June 11, 2019

Board of Directors

Executive Directors Company Secretary

Dr. Anand Deshpande Amit Atre
Founder, Chairman and
Managing Director Auditors
Christopher O’Connor M/s. Deloitte Haskins
Executive Director and & Sells LLP
Chief Executive Officer
Sandeep Kalra
Bankers
Executive Director and
President, TSU ABSA Capital Bank
Axis Bank
Sunil Sapre
Bank of Baroda
Executive Director and
Bank of India
Chief Financial Officer
Barclays Bank
Banco Nacional de Mexico S. A.
Independent Directors BNP Paribas
Roshini Bakshi Bank of Tokyo-Mitsubishi
Pradeep Bhargava Chase Bank
Sanjay Bhattacharyya Citibank NA
Dr. Anant Jhingran Deutsche Bank
Guy Eiferman HDFC Bank Limited
Prof. Deepak Phatak Hongkong and Shanghai Banking
Prakash Telang Corporation
Kiran Umrootkar Silicon Valley Bank
State Bank of India
Non-Executive Standard Chartered Bank
Non-Independent Director Syndicate Bank
Union Bank of India
Thomas Kendra
Wells Fargo Bank

CIN
L72300PN1990PLC056696

Registered Office
Bhageerath, 402 Senapati Bapat Road, Pune 411 016, Maharashtra, India

Contact Info
Tel: +91 (20) 6703 0000 /PersistentSystems
Fax: +91 (20) 6703 0009
@Persistentsys #PersistentAR2019
Email: [email protected]
Website: www.persistent.com /persistent-systems

• 74
Shaping the future of software driven business

Statutory
Section
 Shaping the future of software driven business

Message from the CFO

Dear Shareholders,
The year 2018-19 turned out to be a challenging year for the Company in terms of growth. Revenue registered growth of 2.2%
in USD terms and 11% in INR terms. One important aspect was that there were a good number of deal wins which were very
relevant in new technology areas which is your Company’s strength. This is a positive indication of our offerings and solutions
being found as value-adding by our customers. What could have been better is, we needed higher number of such deals.
The above is one aspect of the quality of revenue. The other aspect is to be able to service the customers with a wider range
of Persistent’s offerings and improve the revenue per customer. This is a metric on which we are placing higher emphasis.
To enable this, the sales teams have been suitably incentivized so that they collaborate with each other and with the delivery
teams towards this objective. As you know, we have a new leadership team in place which is bringing in fresh thoughts and
energy to propel growth.
On the operational front, the increase in demand for new technology skills is causing shortage of niche skills in the market.
This demand-supply gap is increasing the cost of operations. To offset this, we have continued to maintain intense focus on
driving cost efficiency. This could be seen in the improved utilization for the year at 81.1% from 79.2% for the previous year.
The blended billing rate improved by 3.3%. We continued our efforts to increase the offshoring of customer engagements
which has a favourable impact on margins. These improved operating efficiencies are reflected in higher operating margins.
EBITDA worked out to 17.2% for FY 2018-19 as compared to 15.5% in FY 2017-18.
EBITDA margin was impacted due to the provision of ` 183 Million made towards impairment of deposits with the IL&FS
Group, wherein the Company had invested ` 430 Million in form of inter corporate deposits. These investments were made
on the basis of highest credit rating by credit rating agencies. However, post the significant downgrade of credit rating in
September 2018, there has been liquidity crisis at IL&FS Group. Your Company continues to monitor developments in this
matter and is committed to take steps including legal action that may be necessary to ensure full recovery of the said deposits.
Cash generation from business operations continued to be strong at ` 4,323 Million as compared to ` 4,212 Million in the
previous year. Days’ Sales Outstanding (DSO) stood at 63 days at the end of FY 2018-19 as compared to 66 days at the end
of FY 2017-18, reflecting better debtors’ turnaround. Cash and cash equivalents stood at ` 14,798 Million as compared to
` 12,002 Million at the end of FY 2017-18. There was high volatility in currency markets on the back of crude oil prices
and interest rate movement in the US. This led to significant INR depreciation with USD/INR touching a high of ` 74.42 in
October 2018. This sharp depreciation in INR resulted in foreign exchange loss on hedges that were taken in the previous year
and which matured during Q2 and Q3 of FY 2018-19.
Profit After Tax (PAT) amounted to ` 3,516.79 Million in FY 2018-19 as compared to ` 3,230.88 Million in FY 2017-18 with an
increase of 8.8%.
Your Company continues its commitment towards giving back to the society and contributed ` 80.64 Million towards
CSR activities which are carried out under the banner of Persistent Foundation, which just completed 10 years of its journey.
Our dividend payout including the proposed dividend of ` 3 per share will be ` 11 per share as compared to ` 10 per share in the
earlier year. The dividend payout ratio works out to 29.5% for FY 2018-19 as compared to 28.5% in FY 2017-18.
As you are aware, your Company launched its first share buyback program through an open market route for a total value
of ` 2,250 Million. The buyback commenced on February 8, 2019. Till May 31, 2019, approx. 85% of the buyback size has
been completed and the balance is propose to be completed over the next few weeks. The Annual Investor Day was held on
December 11, 2018 in Mumbai where we showcased some of our offerings and solutions including some interaction with your
Company’s customers. We thank all our investors for taking time out for participating in this event.
Priorities for 2019-20
We will continue our efforts to optimize costs, focus on improving productivity per sales person and revenue per customer. We
will continue to drive sustained free cash flow generation. The recent changes in senior leadership will help in better addressing
the market opportunities and accelerating the growth. Overall, we remain committed to deliver value to our customers and
enhance shareholders’ value. I take this opportunity to thank the outstanding team in our Finance and Secretarial functions,
and we will strive to continue doing our best.
I am indeed grateful to all our investors for their continued support.
Sincerely,
Sunil Sapre
Executive Director and Chief Financial Officer

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Report of the Directors

Your Directors are pleased to present the Twenty-Ninth Annual Report of your Company along with the Audited Financial
Statements for the financial year ended March 31, 2019.
This financial year has been a year of transition for your Company. The growth this year was challenging, and your Company
ended the year with revenues of US$ 480.97 Million which was 2.2% growth over the previous year.
Despite the growth challenges, your Directors believe that your Company is in a strong position to capitalize on the opportunities
that are available in the market. Some of the new programs that were initiated during the year took longer to stabilize and they
are expected to provide results in subsequent years.
New Leadership Team
During the year under report, Mr. Christopher O’Connor joined the Persistent Group as the Chief Executive Officer (‘CEO’)
with effect from February 25, 2019. Mr. O’Connor has worked in different leadership roles for IBM for more than 30 years.
He was the General Manager of the IBM IOT business and has been a Persistent customer for nearly 10 years. Mr. O’Connor is
based in the United States and his joining your Company is an important step helping your Company become more global and
multi-national. United States is your Company’s largest market and having a CEO in closer proximity to the customers, should
help your Company to strengthen the relationship with customers.
Mr. Mark Simpson took over as the President of the IBM Alliance Unit from April 1, 2019. Mr. Simpson joined the Persistent
Group three years back after a long career at IBM. Col. Jitendra Gokhale (Veteran) took over as the Head of the Accelerite Unit
in April 2019.
Mr. Sandeep Kalra joined as the President of the Technology Services Unit with effect from May 1, 2019. Mr. Kalra joins your
Company from Harman Connected, a Samsung Company where he was running a similar services business.
Growth and Solutions
During the year under report, your Company set up a team to focus on next generation growth of the Company. The charter
of the Growth and Solutions team is to track and invest to ensure that your Company is seen as a thought leader in the
market. With an aspiration to build domain based and business centric capabilities, growth and solutions teams were set up for
3 (three) industry segments: (i) banking, insurance and financial services; (ii) life sciences and healthcare; and (iii) industrial and
engineering. Technology continues to be the strength for your Company and 4 (four) technology centric growth and solutions
teams were set up to focus on (i) cloud technologies (ii) data and machine learning (iii) security and (iv) internet of things.
2 (two) process-centric teams were established with a focus on product engineering services and partnerships with an emphasis
on Salesforce which is your Company’s largest partner.
The growth and solutions team have started to demonstrate thought leadership in their areas and the work done by these
teams will help your Company differentiate and establish leadership in the market.
Sales Velocity
Your Company has been helping customers in their journey of digital transformation by integrating data from different data
sources and using machine learning to help customers with actionable insights. Your Company decided to apply these principles
to the sales process and established the sales velocity team. The charter of the sales velocity team is to provide salespersons
of your Company a curated and enriched list of potential leads that can help them engage with our existing customers and new
prospects. The sales velocity team has built a software machine to bring together customer data from the various sources such
as news feeds, activities on LinkedIn and interactions that individuals in the Company have with the potential prospects. This
data is combined with data that is present in the customer relationship management system which your Company has deployed
on Salesforce. The software machine can provide salespersons curated leads that can help the salesperson be “smart” about
chasing new customers.
Reseller Business
During the year under report, your Company decided to build a reseller team to be a direct reseller of select IBM products.
Your Company believes that by selling products directly to customers is a first step to becoming a value-added reseller and
have better control of the sales channels for our products. To get this started, a new team was set up in Europe. Your Company
plans to expand the scope of this team to sell other products beyond IBM and geographically extend beyond Europe to the US
and to India.

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Partnerships
Your Company believes in establishing partnerships with leaders in the market. Your Company has had a strong relationship
with Salesforce over the years. The acquisition of Parx in the previous year has helped your Company establish a good Salesforce
presence in the European region. IBM continues to be a strong partner and the reseller relationship will further strengthen this.
During the year under report, your Company established new partnerships with Snowflake and with Ping Identity and continued
to strengthen partnerships with Appian, Blue Prism and Out Systems.
With the strong trend to cloud computing, your Company encouraged employees to get certifications and established a strong
partnership with Amazon AWS and Microsoft Azure.
Partnership with Partners Healthcare
Your Company believes that the healthcare, especially in the US, is set for disruption and your Company could play an important
role in this disruption. To establish credibility in the market, your Company decided to partner with the team at Partners
Healthcare which comprises of medical experts from Massachusetts General Hospital, Brigham and Women’s Hospital, Dana
Farber Cancer Center and Harvard Medical School.
During the year under report, at the 10th annual Connected Health Conference, Partners HealthCare announced in partnership
with your Company the formation of a new center of excellence viz., ‘Partners HealthCare Pivot Labs’ that aims to disrupt the
delivery of healthcare to enhance the patient experience, improve clinical outcomes and control costs.
Together, Partners HealthCare and your Company are challenging conventional thinking to shift the focus to making healthcare
to fit the patient, as opposed to the current model of fitting the patient into the healthcare system. With digital tools and a
unique understanding of the healthcare consumer, Partners Pivot Labs will make care delivery more convenient, accessible
and consumer-centric by thinking about the patient holistically. Partners Pivot Labs will openly collaborate with others in the
healthcare industry like pharmaceutical companies, medical device manufacturers, medical technology companies, payers and
providers to accelerate ideas through the entire development lifecycle, from ideation, prototyping and validation to enterprise-
wide deployment in a clinical environment
Acquisitions and Investments
During the year under report, your Company invested in Cazena, Inc. Cazena is founded by ex-Netezza executives and provide
fully managed data lake services. Your Company also acquired Herald Technologies Inc. which has a product that was created
to transform the data overload swamping healthcare professionals into clear and actionable insights.
Certifications
During the year under report, Pune and Nagpur centers of your Company were successfully assessed for CMMI (Dev - V1.3)
at Maturity Level 5 covering “Technology Service Unit for Software Development, Maintenance and Testing projects”. This
certification will help your Company qualify for the Government projects.
LifeAtPersistent – FY 2018-19
LifeAtPersistent has become a central theme for your Company’s employee engagement and development related work.
One Persistent, CareersAtPersistent and MyLifeAtPersistent are the three specific focus areas for LifeAtPersistent.
One Persistent: Establishing Harmony Within Diversity
Your Company’s Core Values are important and continue to guide all employees in their day-to-day work and help them make
decisions when under pressure. To help employees get a better perspective of core values at Persistent, your Company shared
a video series with messages and practical tips from the Board of Directors and the Management team. To keep core values at
the top of the mind, your Company presented table-top artefacts themed around core values to the leaders located at all our
global centers.
During the year under report, the leadership team of your Company conducted nearly 4,800 Connect Meetings with employees
in small groups to share core values, corporate messages and to get a pulse of the needs of the employees.
These activities have had a positive impact as ‘Frank – the Employee Engagement Survey’ reflected an increase in participation
as well as an improved overall positive perception towards employees’ work experience at your Company.
Oneness through sharing and caring continued during the year under report. Celebrations and acknowledging good
contributions of the employees has a positive impact. Your Company saw an increase in celebrations across all centers and
organized special celebrations to mark the 15-years’ completion of many employees at Persistent Group.

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Your Company conducted quarterly chats for the employees after quarterly results to discuss your Company’s performance for
the quarter and plans for the next quarter. Dr. Anand Deshpande, Chairman and Managing Director, Presidents and other senior
employees interacted with employees through this forum.
CareersAtPersistent: From A We-Enterprise To A Me-Enterprise
Your Company believes that individuals are responsible for their own careers and also believes in doing all what it takes to help
individuals meet their career aspirations and goals. Your Company believes that diversity is important, and every individual is
unique, and this individual uniqueness must be encouraged and preserved. To provide every individual a choice and options,
your Company offered many different programs tailored for specific groups and their requirements.
To help employees with their career development, your Company has established the SARA (Self-Assessment, Reflection and
Achievement) framework. This framework helps employees to plan their individual career and manage their aspirations.
Employees were encouraged to participate in various existing and new initiatives such as Career Development Tools (Online
assessments), Career Guidance Council (by leaders @ Persistent), Career Coaching Service (by certified career coaches), Design
Your Career Program (based on Design Thinking approach), CaPro Program (for Career Progression @ Persistent), Persistent
Toastmasters Club (in association with Toastmasters International) and Gotten Program (for building the culture of ownership)
which were organized throughout the year.
As many as 114 project / team-specific Experiential Programs were organized and more than 2,500 employees participated
throughout the year. Business-relevant and people-centric takeaways, which would catalyze employee development while
helping them align to the business goals was the focus of these experiential programs. Your Company’s Experiential Program
2.0 (2-hour model of in-house experiential programs) was adjudged as the First Runner up at the CII National HR Circle
Competition 2018.
Your Company launched a leadership development program “Navigate to Value” to enable sales leaders in the US acquire
deeper understanding of client buying approach, framing client value, solution selling and strengthening client facing presence.
Financial Acumen for Sustainable Growth was introduced by your Company to enhance the ability of non-finance leaders to
make financially intelligent decisions.
Your Company continued to organize its flagship program - Leadership Enablement at Persistent (LE@P). This six-months’
program has helped mid-level high potential managers to develop a well-rounded understanding of Persistent, customers,
positioning and offerings. This year, your Company also launched an exclusive LE@P batch for your global employees.
After a successful implementation of the Aspire Program last year – A program focused on developing Women Leaders - your
Company’s Women Forum (Prerana) in association with the women leaders of Aspire launched another unique Program named
DISHA. The pilot program was conducted across various Pune locations. The goal was to create a women’s network to provide
women mentorship for career Development in addition to Inspiration, Support, Happiness and Appreciation.
Along with such initiatives, many technical events and sessions such as Agile Day, My Career Story series were organized
during the year under report.
Semicolons, the annual global hackathon for charity was organized in February 2019. This year more than 600 employees
in 47 teams participated across all global locations. 11 employees who made significant technical contribution during FY 2018-19
were recognized by the CTO office during the semicolons event.
In order to encourage employees to explore internal job opportunities, your Company conducted an extensive campaign to
promote Persistent’s internal jobs portal (iJobs).
Employees received feedback about their work through improved Performance and Health Management System (PHMS).
My Life At Persistent: Not Just Products; Helping People Build Their Lives
Work Life @ Persistent is not just about doing serious things. We work hard and we play hard! During the year under report,
more than 250 Beyond Work Initiatives (BWIs) were organized at your Company’s Centers. Every quarter, more than 3,000
employees participated in BWIs. With an intent to cater to varied interest areas of employees, the initiatives were of different
types such as art, fun, family connect, children-special initiatives, festival celebrations, knowledge-sharing etc. An initiative
named ‘Bring Your Kids to Office’ was especially popular among employees and their kids, as kids got a chance to spend an
entire day in their parent’s office. Where feasible, beyond work initiatives were open to family members of the employees.
Pulse, your Company’s annual event was very popular and was celebrated at all centers. Various wellness events were organized
during Pulse.

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Many Beyond Work Initiatives were organized in collaboration with Persistent Foundation, your Company’s CSR Arm and
the support from employees and community was excellent. During the year under report, as many as 26 Green Persistent
Initiatives were organized at various offices of Persistent. These initiatives were organized under 4 (four) broad-level themes of
Environment Conservation: Pollution control, Conservation of energy, Conservation of Trees and Waste Management. Overall,
750+ employees participated in these initiatives and contributed their bit to the environment.
As part of the Wellness Program in your Company, various initiatives such as Wellness Wednesday (a series of wellness tips
shared every Wednesday), Annual Health Check-up (more than 75% employees participated), Wellness Workshops (Yoga,
Zumba, Functional Training), etc. were organized.
Persistent Run, your Company’s flagship event had more than 4,500 enthusiastic runners participating. Your Company’s
Wellness Experts helped employees overcome their stress and ailments, whereas the Trekking Community continued the
monthly treks and organized 3 (Three) Himalayan treks. Your Company takes pride in mentioning that Persistent employees
were successful in scaling the summit.
On International Yoga Day, employees across various Centers did 15,000+ Sun Salutations.
Anand vs Anand Chess Event
Your Company had the honour of hosting Grand Master and former World Chess Champion Mr. Viswanathan Anand (Vishy)
in a fire side chat event with Dr. Anand Deshpande, Chairman and Managing Director of your Company. In an hour-long
conversation, Dr. Deshpande and Vishy had a highly engaging conversation discussing similarities between chess and business.
How preparation is the key to success and how that preparation helps in better decision making. The interview is available on
YouTube at https://youtu.be/uSIHi7APakA
LifeAtPersistent in financial year 2019-20
Looking ahead to financial year 2019-20, your Company will continue to strengthen the program. This year, Life at Persistent
has a theme of ‘Sustainability and Vibrancy’ and will focus on ‘Developing a Culture of Ownership.’
Talent Additions during the Year
Your Company continues to attract high caliber quality talent in the industry. During the financial year 2018-19, your Company
recruited 3,596 employees on a consolidated basis consisting of regular employees, trainees/interns, consultants, business
consultants, contract consultants consisting of technical and non-technical professionals.
As on March 31, 2019, your Company employed 9,962 professionals (including trainees and associates) on a consolidated basis
spread across 18 countries. Your Company employed 8,691 in main-stream technical positions. Of these 5,242 were graduates,
1,896 post-graduates and 28 Ph.D.s. The distribution of overseas employees now constitutes 14.93% of the total work force.
Team Persistent is 10,000
In April 2019, your Company achieved an important landmark when the overall headcount of your Company crossed
10,000 for the first time. This number includes all full-time employees and temporary staff across all global locations
which is spread across the regions as follows: India – 8,490; America (incl. Canada, USA and Mexico) – 1,100; Europe – 250;
other APAC region - 160.
Your Company recruits fresh talent from various engineering colleges in India. During the year under report, your Company
added a batch of 1,001 new graduates through campus recruitment. Your Company strongly believes in nurturing ‘Industry -
Academia’ partnerships and has many programs such as BE project mentoring, Persistent Day, Internship for college students.
Persistent Computing Institute (PCI) conducted programs in cutting edge technology for students that were very popular.
The attrition rate during the year under report was 16.70% which was more than the attrition rate of 14.70% for the previous
year.
Continuous Learning and Skill Enablement
In line with a focus on continuous learning and self-development, Persistent University is driving ongoing skills development,
thus ensuring that employees are ready for the future. The University serves as a one-stop learning destination with offerings
to enhance technical skills, business communication, management and behavioral skills. Multiple learning methodologies are
offered such as in-class trainings, remote trainings, blended trainings, Massive Online Courses, self-learning and assessments
for internal certification. Employees can choose from a variety of courses along with combination of learning methodologies
as per their Individual Learning Plan (ILP). Every employee’s ILP is in line with the Company, project and individual aspirations.

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Training details
Your Company covered 70% of employees through at least one training this year, and 43% employees underwent digital
technology trainings. Your Company trained about 284 campus hires in the Entry Level Training Program (ELTP).
The total investment for In-Class training was around 1,500 person months and totaling to 9,886 enrollments. Self-learning
investment on In-house knowledge center course enrollments was around 2,000 person months.
Total enrollments for internal certifications, either after In-Class training or self-learning were 27,810.
Your Company encourages learning and knowledge enhancements via various means. During the year under report, your
Company launched the following initiatives focusing on Digital Technologies:
• Designed and launched ORBIT digital technology program exclusively for the senior managers and leaders in the organization,
around 200 attended this program.
• Continued with the Digital Technothon initiative, where employees work on digital technologies (IoT, Machine learning, Block
Chain, Dev Ops, AWS, MEAN Stack, full stack). They build and exhibit end-to-end mini projects. 11 such projects were displayed
after the campus hires.
• Launched ‘Pledge to Learn’ initiative where employees pledge proactively to learn digital technologies for future readiness.
More than 1,600 employees pledged and underwent digital technology trainings.
Technology Predictions for 2019
The CTO group in your Company publishes a Technology Predictions Guide at the beginning of the calendar year 2019. The
excerpts from this year’s guide are as follows:
In 2019, one thing is certain — there will be no slow-down in the software transformation journey for organizations across the
world, nor in the pace of technology disruptions. To navigate through these rough waters, business leaders will need to have
one eye firmly fixed on the horizon, in order to exploit future trends before they can upturn the organization. In this article, we
explore the 6 (six) technologies that will turn the tide for organizations this year, while outlining broad guidelines on how to
leverage them and sail into the new age, full steam ahead.
1. Data & Analytics
From “must have” to “must deliver value”
Decision-making platforms built on data lakes are no longer enough to generate business value. Enterprises will have to
embrace data value governance that covers the entire analytics value chain, from data and insights, to people and processes.
Moreover, data governance will have to be integrated with overall business strategy and aligned to a data-driven business
model. In the near future, we foresee Machine Learning (e.g. self-service data preparation platforms) and Natural Language
Processing (conversational analytics) accelerating the data-driven decision-making process.
2. Artificial Intelligence & Machine Learning
ML is all set to excel in 2019
Machine Learning is already an intrinsic part of enterprise automation roadmaps. AI democratization is on the horizon, spurred
by an increase in ML solutions, rising demand for data science talent, and increasing complexity of algorithms. Large platform
players (think Amazon, Google) will prove instrumental in the explosion of ML models. 2019 will train its spotlight on NLP and
text analytics, along with deeper explorations into deep learning. Enterprises should look past chatbots and incorporate NLP
in every aspect of customer experience, while evaluating explainable aspects of algorithms for better adoption of black box
models. Also, remember to keep a sharp eye on regulatory frameworks.
3. Human-Machine Interaction
AR will soon become ER – Everyday Reality
While Human Machine Interaction technologies — including augmented reality (AR), virtual reality (VR), and chatbots — are yet
to find mainstream adoption, they are slowly gaining traction in the enterprise. Adoption barriers will further dissolve with
advancements in software engines, AR/VR devices, and democratization of content creation. So how can enterprises leverage
HMI? Smartphones are a smart conduit for AR applications — consider using them to create a customer outreach strategy.
Secondly, ramp up productivity with AR/VR applications that assist human resources employed in diagnostics and repairs.
Also, using safe, cost-effective AR/VR applications to simulate dangerous physical world scenarios can give you an edge over
competitors, especially during training programs and demonstrations.

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4. Internet of Things (IOT)

Security is still top priority
Security remains the dominant success factor in IoT deployments, and architectural shifts are in the air, along with an increasing
number of IoT devices. Edge Computing will be the new center of focus, while blockchain and newer network connectivity
standards will impact IoT over the long term. Security will improve as the industry learns from more complex deployments, with
remote upgradation of IoT devices becoming indispensable, and compliance with GDPR becoming non-negotiable. To succeed,
adopt an edge-first approach and ensure clarity of expected business outcomes and technology roadmaps before embarking
on IoT projects.
5. Identity, Access & Security
Zero trust is still the hero in 2019
In today’s age of highly fluid enterprise network boundaries, good sense dictates to ‘never trust, always verify’. In the near
future, automation and managed security services will gain wide traction, while self-sovereign decentralized identities will set
the stage for a collaborative ecosystem.
To move towards a zero-trust enterprise, focus on omni-channel security, backed by machine-intelligence- driven monitoring
tools and an automated framework. Want to leverage users’ data in business analysis and transactions? Ensure user consent
first. To further tighten security measures, create a cohesive data security and privacy plan to comply with global data privacy
regulations.
6. Blockchain
Hype-time over, prime-time begins
In 2019, multiple enterprise blockchain pilots will move into production, egged on by the launch of robust production grade
platforms. Expect blockchain to mature into a viable self-sovereign identity solution and public blockchains like Bitcoin and
Ethereum to rise stronger from the ashes, with layer-2 network solutions. Blockstack — a new global blockchain platform for
decentralized apps (dApps) — will also usher in exciting new changes. Our recommendation for enterprises? Blockchain value
creation demands a business strategy shift and alliance formation — hold a boardroom conversation first before jumping the
gun to a technology conversation.
Publications during the financial year 2018-19
• “ATD’s Foundations of Talent Development: Launching, Leveraging and Leading your Organization’s TD Effort” book by Elaine
Biech: Persistent University Success Story by Shubhangi Kelkar
• https://www.amazon.com/ATDs-Foundations-Talent-Development-Organizations-ebook/dp/B07H5MHNYS/ref=reader_auth_
dp
• Real Face Detection and Recognition: The Live Experiment , Mar 2018, International Journal of Computer Applications(IJCA),
Authors: Shailesh Wadhankar, Priya Singh, Soumyakant Sahoo
• Smart Fleet Management System Using IoT, Computer Vision, Cloud Computing and Machine Learning Technologies,
Presented in 5th I2C IEEE international Conference March 2019, accepted in IEEE Xplore for publication, Authors: Priya Singh,
Milind Suryawanshi, Darshana Tak
• Performance Characterization of Hyperledger Fabric, Arati Baliga, Nitesh Solanki, Shubham Verekar, Amol Pednekar,
Pandurang Kamat and Siddhartha Chatterjee, in the First Crypto Valley Conference on Blockchain Technology (CVCBT) June
2018, Zug, Switzerland. (pdf).
• Performance Evaluation of the Quorum Platform, Arati Baliga, I Subhod, Pandurang Kamat and Siddhartha Chatterjee,
July 2018, published on Arxiv.org (pdf).

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S.No. Title and Authors Focus Areas Journal

1. Maniyadath B, Chattopadhyay T, Verma S, Kumari S, Kulkarni P, Banerjee K, Life Sciences Cell Reports
Lazarus A, Kokane SS, Shetty T, Anamika K, Kolthur-Seetharam U (2019). Loss
of Hepatic Oscillatory Fed microRNAs Abrogates Refed Transition and Causes
Liver Dysfunctions.
2. Kumar P, Panigrahi P, Johnson J, Weber WJ, Mehta S, Sajulga R, Easterly C, Life Sciences J Proteome Res.
Crooker BA, Heydarian M, Anamika K, Griffin TJ, Jagtap PD (2019). QuanTP: A
Software Resource for Quantitative Proteo-Transcriptomic Comparative Data
Analysis and Informatics.

Conferences
• Co-organizer for a workshop with PCCM and IISER Pune on “Multi-Omics Studies in Cancer Learnings from The Cancer
Genome Atlas (TCGA)” in September 2019
• Attended and presented “Multi-omics Data Integration Reveals miRNA-mediated Gene Regulation in Triple-Negative Breast
Cancer” at Cell Symposium:TCGA Legacy, Washington DC, Sep 27-29, 2018
Smart India Hackathon
Your Company continued to play an active leadership role in organizing the third edition of Smart India Hackathon. This year’s
event was larger and in addition to the 18 Government ministries, problems were shared by 96 industry collaborators. This
year, more than 32,000 teams submitted ideas for the software edition and more than 20,000 teams submitted ideas for the
hardware edition.
A 36-hour hackathon for the software edition was held on March 2 and 3, 2019 with more than 8,000 students participating in
48 centers across India. The software edition was a grand success and the Hon’ble Prime Minister, Mr. Narendra Modi inspired
participants during a live interaction via video conferencing. The hardware edition will be held in July 2019.
Project Manav
Your Company was instrumental for setting up the Manav project which was recently funded for three years by the Department
of Biotechnology (DBT) and co-funded by your Company. The project is in partnership with the two leading biological science
institutes in Pune – National Centre for Cell Science (NCCS) and Indian Institutes of Science Education and Research (IISER).
The Manav project aims to create a structured, comprehensive and integrated knowledge base of the human body by collecting
in one place macro-level and micro-level information about the human body from scientific literature and public databases.
The project will work with thousands of students in colleges and young professionals and provide a common gamified platform
to encourage participants to read, review, collaborate and annotate published scientific articles. The students contributing to
this initiative will get exposure to diverse research articles in biological and medical sciences. Your Company will be providing
its expertise in life sciences, big data management, platform development for capturing data, data analytics and visualization
for successful execution of Manav.
Pradeep Bhargava, Independent Director was elected as the President of MCCIA
Mr. Pradeep Bhargava who is an Independent Director of your Company was elected as the President of the Mahratta Chamber
of Commerce, Industries and Agriculture (MCCIA) for a two-year term from October 2018 to September 2020. MCCIA is the local
chamber of commerce in the Pune region. Various reputed companies are members of the chamber and it is a matter of pride
that Mr. Bhargava who is representing your Company at the Chamber is the elected President of this prestigious organization.
ACM India Corporate Sponsorship
Your Company has signed up as the platinum sponsor for ACM India. This sponsorship will help your Company to get visibility
and branding in the technology community which is essential for attracting the best of talent to your Company.
The Association for Computing Machinery (ACM) is an international learned society for computing. It was founded in 1947 and
is the world’s largest scientific and educational computing society. Your Company has been a supporter of the ACM and has
helped establish ACM in India. The ACM India headquarters works out of the offices of your Company. Dr. Hemant Pande who
is a former employee of your Company joined the ACM as the Executive Director and has set up this Corporate Sponsorship
program.

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Financial Results
The highlights of the financial performance on a consolidated basis for the year ended March 31, 2019 are as under:

Particulars Amount in Amount in % Change

USD Million except ` Million except (based on the
EPS and Book Value EPS and Book Value amounts in `)
2018-19 2017-18 2018-19 2017-18
Revenue from Operations 480.97 470.55 33,659.41 30,337.03 10.95 %
Earnings before interest, depreciation, 79.49 72.70 5,562.40 4,687.26 18.67 %
amortization and taxes
Finance Cost 0.04 0.01 3.05 0.79 286.08 %
Depreciation and amortization 22.47 24.58 1,572.51 1,584.87 (0.78) %
Other income 12.53 18.47 876.55 1,191.01 (26.40) %
Tax expense 19.24 16.47 1,346.60 1,061.73 26.83 %
Net profit 50.25 50.11 3,516.79 3,230.88 8.85 %
Transfer to general reserve 18.01 21.23 1,260.03 1,368.47 (7.92) %
Net worth* 338.51 326.00 23,394.09 21,245.60 10.11 %
Earnings per share (EPS) (Basic) 0.63 0.63 43.99 40.39 8.91 %
Earnings per share (EPS) (Diluted) 0.63 0.63 43.99 40.39 8.91 %
Book value per equity share 4.28 4.08 295.68 265.90 11.20 %
[Conversion Rate USD 1 = ` 69.98 for Profit and Loss items; USD 1 = ` 69.11 for Balance Sheet items (financial year 2018-19) and
USD 1= ` 64.47 for Profit and Loss items; USD 1 = ` 65.17 for Balance Sheet items (financial year 2017-18)].
*Net worth = Equity Share Capital + Reserves and Surplus (excluding Gain on bargain purchase) + Other Comprehensive Income
The highlights of the financial performance on an unconsolidated basis for the year ended March 31, 2019 are as under:

Particulars Amount in Amount in % Change

USD Million except ` Million except (based on the
EPS and Book Value EPS and Book Value amounts in `)
2018-19 2017-18 2018-19 2017-18
Revenue from Operations 280.06 268.77 19,598.67 17,327.49 13.11 %
Earnings before interest, depreciation, 54.38 59.16 3,805.21 3,813.77 (0.22) %
amortization and taxes
Finance Cost 0.01 0.01 0.51 0.62 (17.74)%
Depreciation and amortization 6.56 8.34 458.84 537.81 (14.68)%
Other income 14.83 19.80 1,037.90 1,276.82 (18.71)%
Tax expense 17.63 17.54 1,233.68 1,130.99 9.08 %
Net profit 45.01 53.07 3,150.08 3,421.17 (7.92) %
Transfer to general reserve 18.01 21.23 1,260.03 1,368.47 (7.92) %
Net worth* 321.40 315.05 22,211.90 20,532.04 8.18 %
Earnings per share (EPS) (Basic) 0.56 0.66 39.40 42.76 (7.86) %
Earnings per share (EPS) (Diluted) 0.56 0.66 39.40 42.76 (7.86) %
Book value per equity share 4.06 3.94 280.74 256.65 9.39 %
[Conversion Rate USD 1 = ` 69.98 for Profit and Loss items; USD 1 = ` 69.11 for Balance Sheet items (financial year 2018-19) and
USD 1= ` 64.47 for Profit and Loss items; USD 1 = ` 65.17 for Balance Sheet items (financial year 2017-18)].
*Net worth = Equity Share Capital + Reserves and Surplus + Other Comprehensive Income
Material Events Occurring after Balance Sheet Date
There were no material changes and commitments affecting the financial position of your Company between the end of the
financial year and the date of this report.
Buyback of Equity Share of your Company
The Board of Directors of your Company, at its meeting held in January 2019, approved the buyback of the Company’s fully
paid-up equity shares of the face value of ` 10 each from its shareholders (excluding promoters, promoter group and persons
who are in control of the Company), via the “open market” route through the stock exchanges, for a total amount not exceeding
` 2,250 Million, and at a price not exceeding ` 750 per Equity Share.

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The indicative maximum number of Equity Shares bought back at the above maximum price would be 3,000,000. If the Equity
Shares are bought back at a price below the Maximum Buyback Price of ` 750, the actual number of equity shares bought back
could exceed the above indicative Maximum Buyback quantity but will always be subject to the Maximum Buyback Size.
Status of the Buyback as on the report date
The buyback commenced on February 8, 2019. The details regarding the number of shares bought back on a monthly basis are
as follows:

Sr. Month No. of Equity Consideration % of Maximum Avg. Price (In `)

No. Shares bought back Paid (In `) Buyback Size
1. February 2019 368,851 234,137,303.25 10.41 634.77
2. March 2019 512,247 337,264,931.01 14.99 658.40
3. April 2019 1,449,015 913,981,595.74 40.62 630.76
4. May 2019 695,000 423,177,301.10 18.81 608.89
5. Up to June 11, 2019 240,000 144,489,590.50 6.42 602.04
Total 3,265,113 2,053,050,721.60 91.25 628.70
In terms of the SEBI Buyback Regulations, the Equity Shares bought back during the month are required to be extinguished
within 15 days of the succeeding month. Accordingly, the shares purchased up to May 31, 2019 i.e. 3,025,113 were extinguished
on June 7, 2019.
Consequently, the paid-up capital of the Company as at June 11, 2019 has been reduced from ` 800,000,000 (Pre-Buyback) to
` 769,748,870 comprising of 76,974,887 Equity Shares of ` 10 each.
The Buyback will be open till August 7, 2019 or reaching maximum buyback size, whichever is earlier.
Liquidity
Your Company continues to maintain adequate amount of liquidity to meet its strategic and growth objectives. Your Company
aims to maintain a balance between earning adequate returns on liquid assets and the need to cover financial and business
risks. As at March 31, 2019, your Company, on an unconsolidated basis, had cash and cash equivalents (including investments)
amounting to ` 13,109.31 Million as against ` 10,768.92 Million as at March 31, 2018. The details of cash and cash equivalents
(including investments) are as below:
(In ` Million)
Particulars As at As at
March 31, 2019 March 31, 2018
Investment in Mutual Funds at fair value 5,270.44 7,573.80
Fixed Deposits with scheduled banks 4,687.90 747.03
Deposit with Financial Institutions (Net) 497.50 1,030.35
Bonds (quoted) 2,088.35 1,112.47
Cash and Bank balances 565.12 305.27
Total 13,109.31 10,768.92

Update on Fixed Deposits with IL&FS

One of the investments in your Company’s treasury portfolio, is in the form of fixed deposits with Infrastructure Leasing and
Financial Services Limited (IL&FS) and IL&FS Financial Services Limited (IL&FS Group) to the extent of ` 430 Million. These
were due for maturity from January 2019 to June 2019. In August 2018, credit rating agency significantly downgraded IL&FS
group’s rating. In view of the uncertainty about the liquidity crisis at IL&FS, it is likely to take considerable time to ascertain
the value of the assets held by various entities in IL&FS Group as against the total outstanding debts of the group. In the above
circumstances, the management of your Company was of the view that the provision for impairment of the deposits needs to
be made in the books of accounts. Hence, a provision of INR 182.50 Million i.e. 42.4% of the total investment in IL&FS has been
made as on March 31, 2019. Your Company continues to monitor developments in this matter and is committed to take steps
including legal action that may be necessary to ensure full recovery of the said deposit.

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Dividend for the financial year 2018-19

The details of the Dividend for the financial year 2017-18 and 2018-19 are as follows:

Financial Year 2018-19 Financial Year 2017-18

Type of Dividend Interim Final Interim Final
(Recommended)
Month of Declaration January July 2019 January July
2019 2018 2018
Amount of Dividend Per Equity Share of ` 10 each (In `) 8 3 7 3
% of Dividend 80% 30% 70% 30%
Total Dividend (Amt. in ` Million) 640.00 230.92* 560.00 240.00
Dividend Distribution Tax) (Amt. in ` Million) 117.23 47.47* 101.37 20.18
Total Outflow (Including Dividend Distribution Tax) 757.23 278.39* 661.37 260.07
(Amount in ` Million)
Total Dividend Outflow for the year(Amt. in ` Million) 1,035.62* 921.53
* The outflow is being considered based on the outstanding capital (` 769,748,870 comprising of 76,974,887 Equity Shares of ` 10 each) after
considering the shares bought back till May 31, 2019 and which were extinguished till the date of this report.

The payment of final dividend of ` 3 per share is subject to your approval during the 29th Annual General Meeting (AGM) of your
Company. The Dividend will be paid out of profits of your Company.
Out of the interim dividend declared in January 2019, ` 0.17 Million remained unclaimed as on March 31, 2019.
The Company has Dividend Distribution Policy and the same has been uploaded on the website at ‘https://www.persistent.com/
wp-content/uploads/2016/09/Dividend-Distribution-Policy.pdf’
The above dividend is in compliance with the Dividend Distribution Policy of the Company.
Transfer to reserves
As per the policy of the Company on transfer of surplus profit to reserves, an amount of ` 1,260.03 Million has been transferred
to the General Reserve and an amount of ` 744.00 Million will be retained in the Statement of Profit and Loss after payment of
dividend and tax thereon. The balance in Profit and Loss Account as on March 31, 2019 is ` 9,735.72 Million.
Fixed Deposits
In terms of Sections 73 and 74 of the Companies Act, 2013 (the ‘Act’) read with the relevant Rules, your Company has not
accepted any fixed deposits during the year under report.
Infrastructure
During the financial year 2018-19, the total built-up capacity owned by your Company in India and abroad was 115,478 m2 which
is adequate for 8,800+ employees.
The details of owned facilities of your Company are as follows:

Location Year of Acquisition /Completion Total Built-up Area (m2) Total Seating Capacity
Pune
Kapilvastu 1994 202 35
Panini 1998 929 80
Bhageerath 2002 12,170 586
Aryabhata – Pingala 2007 31,680 2,618
Hinjawadi 2012 41,446 3,173
Goa
Charak 1997* 3,280 309
Bhaskar 2014 3,762 411
Nagpur
IT Tower 2003 3,708 352
Gargi and Maitreyi 2011 17,279 1,263
Grenoble, France 2000** 1,022 50
Total 115,478 8,877
* Company started to occupy this premises from October 2005 onwards.
** Company acquired this premises in August 2011 as part of acquisition of the Grenoble team.

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Along with the Company owned premises, your Company also operates from leased facilities at Canada, India, Israel, Ireland,
Malaysia, Mexico, Scotland, Sri Lanka, USA and UK.
Awards and recognitions during the financial year 2018-19
During the financial year 2018-19, your Company continued its tradition of winning various awards and getting new recognitions.
Your Company was a proud recipient of the following awards during the year under report:
Awards
1. First Runner up in National HR Circle Competition, 2018 amongst 16 organizations under Employee Engagement and
Relations category (Large services companies)
2. Recognized for having used marketing communications effectively in attracting talent, retaining talent, developing talent
and in retention policy
3. First prize for the Wellness and Wellbeing Award category at the Future of HR Summit and Awards, 2018
4. Nagpur Best Employer Brand Awards for using effective marketing communications in talent management
5. ‘India’s Coding Power House’ 3 consecutive year 2014 – 16 | Among top 5 in 2018
6. ‘Best Corporate University’ Award from TISS - LEAPVAULT 2018
7. ‘Best Virtual Learning Program’Award from TISS - LEAPVAULT 2018
8. ‘Training Top 125 (T125) 2018 Award (International) from Training magazine
9. ‘Golden Peacock National Training Award 2019’ from the Institute of Directors, New Delhi
10. Dr. Anand Deshpande, Founder, Chairman and Managing Director received Life Time Achievement Award from the Pune
Chapter of the TiE, The Indus Entrepreneur is a global organization of entrepreneurs
11. The Infrastructure, Facility, Human Resources & Realty Association (iNFHRA) has awarded Xcellence award for Ecological
Sustainability to Mr. Sanjay Chaudhari, Senior Manager – Administration
Recognition
1. Tilak Maharashtra University conferred Honarary D. Litt. to Dr. Anand Deshpande, Founder, Chairman and Managing
Director.
2. Your Company congratulates Mr. Pradeep Bhargava, Independent Director who is representing your Company at Mahratta
Chamber of Commerce Industries and Agriculture, Pune (MCCIA) and has been elected as the President for a two-years
term. He assumed charge during the 84th Annual General Meeting on September 25, 2018.
3. Your Company has seconded Dr. Abhay Jere, Head – Persistent Labs to the Ministry of Human Resource Development,
Government of India for a period of three years. Dr. Jere has been appointed as the Chief Innovation Officer (CIO) to
systematically foster the culture of Innovation amongst all Higher Education Institutions (HEIs). Dr. Jere’s primary mandate
is to create national policy frameworks and programs for nurturing innovation ecosystem and to help the Ministry design
various initiatives to encourage, inspire and nurture young students by exposing them to new ideas and processes resulting
in innovative activities in their formative years.
Auditors
Appointment of statutory auditors
The Members of your Company at the 24th AGM held on July 26, 2014, appointed M/s. Deloitte Haskins & Sells LLP, Chartered
Accountants (Firm Registration No. 117366W/W-100018) and M/s. Joshi Apte & Co., Chartered Accountants (Firm Registration
No. 104370W) as the Joint Statutory Auditors of your Company to hold such office till the conclusion of the AGM in the calendar
year 2019 and 2017, respectively.
Pursuant to such appointment, M/s. Joshi Apte & Co., Chartered Accountants retired at the conclusion of the 27th AGM held on
July 20, 2017. Thereafter, M/s. Deloitte Haskins & Sells LLP, Chartered Accountants have been the sole Statutory Auditors of
your Company.
The Audit Committee of the Board has taken a conservative view and recommended appointment of M/s. Deloitte Haskins &
Sells LLP in their second term for a period of 2 (two) years i.e. from the ensuing 29th AGM up to the conclusion of the AGM to be
held on or before September 30, 2021, which will be subject to the approval of the Members of the Company.

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Accordingly, your Directors at its meeting held on June 11, 2019, considered recommendation of the Audit Committee favourably
and have further recommended to the Members for an appointment of M/s. Deloitte Haskins & Sells LLP as the Statutory
Auditors of your Company for a period of 2 (two) years i.e. from the ensuing 29th AGM up to the conclusion of the AGM to be
held on or before September 30, 2021.
Further, in terms of the Regulation 33(1)(d) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
(the ‘Listing Regulations’), the Statutory Auditors of your Company are subjected to the Peer Review Process of the Institute of
Chartered Accountants of India (ICAI). M/s. Deloitte Haskins & Sells LLP has confirmed that they hold a valid certificate issued
by ‘Peer Review Board’ of ICAI. They have also conveyed their eligibility and willingness to act as the Statutory Auditors of the
Company.
Secretarial Audit Report
Pursuant to Section 204 of the Act, the Board of Directors had appointed M/s. SKO & Associates, Practicing Company Secretaries
as the Secretarial Auditors of your Company for the financial year 2018-19.
Accordingly, the Secretarial Auditors have given their report, which is annexed hereto as Annexure A. The comments of the
Board on the observations of the Secretarial Auditors are as follows:

Sr. Observations by the Secretarial Auditors Comments by the Board

No.
1. There was a delay of one day in intimating to the Stock The Company received the e-mail intimation after business
Exchanges about loss of share certificate. hours. Post receipt, the Company verified the details
with the Registrar and Transfer Agent before intimating
the same to the Stock Exchanges. In this process, the
evaluation delayed by 1 (one) day, and the Company could
not meet the compliance within prescribed time. The
Company has taken sufficient precautions not to repeat
such instances in future.
2. Pursuant to Regulation 47(2) of the SEBI (Listing Though, the Company mentioned the website address
Obligations and Disclosure Requirements), Regulations, along with its name and address details in all its newspaper
2015, the Company has not provided link of the website advertisements, a specific mention of the Company’s
where further details are available in certain newspaper website address was missing in one of the public
advertisements. advertisements for declaring quarterly results.
The Company took cognizance of the same and
started providing the link separately in its newspaper
advertisements at prescribed place in the quarterly
advertisements.
3. The Company filed form for appointment of Whole The delay was due to inadvertence. The Company has
Time Director with the Registrar of Companies, beyond taken sufficient precautions not to repeat such instances
prescribed time. The said form has been approved by in future.
Registrar of Companies.

b lan k
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4. The Company filed Form IEPF 1 and IEPF 4 with the The Company has been prompt in filing Form IEPF 1 and
Registrar of Companies, beyond prescribed time. IEPF 4 with the Ministry of Corporate Affairs (MCA), within
prescribed time.
In FY 2010-11, to ensure the security of dividend amount
and to transfer it to the rightful owners, the Company
opened a separate Bank Account to credit the unclaimed
dividend amount out of Final Dividend of FY 2009-10 with
respect to unclaimed 600 Equity Shares from its IPO
in 2010.
Due to oversight, the Company did not transfer ` 300 from
the above Bank Account at the time of transferring the
unpaid amount from the Final Dividend of FY 2009-10.
After recognizing, the Company took steps in this regard
to transfer the abovementioned ` 300 to the IEPF Bank
Account and has completed the transfer of funds on
October 17, 2018. As per Section 124(3) of Companies Act,
2013, the Company has paid an interest of ` 42 @ 12% p.a.
on ` 300 and has transferred an aggregate amount of
` 342 (Rupees Three Hundred and Forty-Two only) to the
IEPF Account.
After completing the above additional transfer to the IEPF
Authorities, the Company immediately filed Form IEPF 1
and IEPF 4 and complied with the requirements.
5. Under the Foreign Exchange Management Act, 1999, The Company was following practice of reporting
there was delay in two cases for submission of Forms events in case of stepdown subsidiaries through Annual
ODI relating to reporting of certain events in case of Performance Reports (APRs) every year. The said APRs
step-down subsidiaries. include financial and structural updates regarding the
step-down subsidiaries; and the same is taken on record
by the Reserve Bank of India from time to time.
However, during the year, the Company received a
guidance from the subject matter expert to submit
Form ODI separately for the events (equity/loan/guarantee)
in case of stepdown subsidiaries.
Accordingly, the Company filed Forms ODI relating to
reporting of certain events (equity/guarantee) in case of
stepdown subsidiaries which was beyond prescribed time.
Henceforth, the Company will follow the above process to
submit Form ODI separately for the events (equity/loan/
guarantee) in case of stepdown subsidiaries.
Board and Corporate Governance
Board Meetings
The details pertaining to the composition, terms of reference and other details of the Board of Directors of your Company and
the meetings thereof held during the financial year 2018-19 are given in the Report on Corporate Governance section forming
part of this Annual Report.
Directors and Key Managerial Personnel
During the period from April 1, 2019 till the date of this report, the Board has appointed the following Directors:
a. Mr. Christopher O’Connor as an Additional Director (Executive Director) with effect from April 27, 2019 for a term of
3 years i.e. up to April 26, 2022. He has also been also appointed as the Chief Executive Officer of your Company.
b. Mr. Sandeep Kalra as an Additional Director (Executive Director) with effect from June 11, 2019 for a term of 3 years i.e.
up to June 10, 2022. He has also been appointed as the President-Technology Services Unit of your Company.

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In terms of Clause (e) of the Schedule V to the Act, a person who wishes to be appointed as the Executive Director of a company
needs to be a Resident of India.
 urther, a person being a non-resident in India and getting appointed as the Executive Director may travel to India only after
F
obtaining an Employment Visa from the concerned Indian Embassy/Commission abroad.
 ince Mr. O’Connor and Mr. Kalra are non-residents and the Board of Directors has considered the same while recommending
S
their appointment as the Executive Director of the Company, the Company will seek an approval from the Central Government
for claiming an exemption from the above requirement as per the Schedule V to the Act subject to the approval of the Members
at the ensuing AGM.
The appointment of 5 (Five) Independent Directors (Ms. Roshini Bakshi, Mr. Pradeep Bhargava, Mr. Sanjay Bhattacharyya,
Mr. Prakash Telang and Mr. Kiran Umrootkar) was made at the 24th AGM held on July 24, 2014 for a period of 5 (Five) consecutive
years for a term up to conclusion of the ensuing 29th AGM.
 he Board of Directors of your Company at its meeting held on June 11, 2019 considered total tenure of the Independent
T
Directors in the Company for their reappointment. They also considered their contribution in the first term, expertise, wide
industry experience and business connects for recommending them for the re-appointment for the next term. Pursuant to the
provisions of the Act, they are not liable to retire by rotation.
Accordingly, the Board recommended reappointment of the following Independent Directors at the ensuing AGM as follows:

Sr. No. Name of the Independent Director Recommended term of appointment

1. Ms. Roshini Bakshi 5 Years
2. Mr. Pradeep Bhargava 3 Years
3. Mr. Prakash Telang 1 Year
4. Mr. Kiran Umrootkar 1 Year
The above 4 (Four) directors have confirmed their eligibility and willingness to accept the office of the Director of your
Company, if confirmed by the Members at the ensuing AGM. In the opinion of your Directors, the above 4 (four) Directors have
requisite qualifications and experience and therefore, your Directors recommend that the proposed resolutions relating to the
re-appointment of above 4 (Four) directors be passed with the requisite majority.
Mr. Sanjay Bhattacharyya, Independent Director expressed his unwillingness for re-appointment for the next term due to
personal reasons. The Board of Directors of your Company respected his decision and accordingly, has not recommended his
appointment for the next term. The Board sincerely appreciates the contribution by Mr. Bhattacharyya during his tenure with
your Company and wishes him all the best for his future endeavours.
In terms of Section 152(6) of the Act and Article 116 of the Articles of Association of your Company, Dr. Anand Deshpande,
Chairman and Managing Director is liable to retire by rotation at the 29th AGM as he is Executive and Non Independent Director
who is holding office for the longest period among the Non-Independent Directors on the board.
Dr. Deshpande has confirmed his eligibility and willingness to accept the office of the Director of your Company, if confirmed by
the Members at the ensuing AGM. In the opinion of your Directors, Dr. Deshpande has requisite qualifications and experience
and therefore, your Directors recommend that the proposed resolution relating to the reappointment of Dr. Deshpande be
passed with the requisite majority.
At present, your Company has 13 (Thirteen) Directors out of which 8 (Eight) are Non-Executive Directors who are Independent
Directors. Pursuant to the Regulation 17(1)(b) of the Listing Regulations, every listed company shall have at least half of its total
strength of the Board of Directors as Independent Directors where Chairman is an Executive Director. Your Company complies
with this requirement.
In terms of the Listing Regulations, your Company conducts the Familiarization Program for Independent Directors about their
roles, rights, and responsibilities in your Company, nature of the industry in which your Company operates, business model of your
Company, applicable laws, amendments and the effects there of etc., through various initiatives. The details of the same can be
found at: https://www.persistent.com/investors/familiarisation-programme/

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Declaration of Independence by Independent Directors

The Board confirms that all Independent Directors of your Company have given a declaration to the Board that they meet the
criteria of independence as prescribed under Section 149 of the Act and Reg. 16(1)(b) of the Listing Regulations.
Separate meeting of the Independent Directors has been held during the financial year 2018-19 in which the Independent
Directors have transacted the following business:
1. Reviewed performance of the Management of the Company;
2. Discussed the quality, quantity and timeliness of the flow of information between the Directors and the Management of
the Company;
3. Discussed the strategic matters of the Company and current state of the global IT industry; and
4. Reviewed performance of Non-Independent Directors
Committees of the Board
The details of the powers, functions, composition and meetings of all the Committees of the Board held during the year under
report are given in the Report on Corporate Governance forming part of this Annual Report.
Audit Committee
The details pertaining to the composition, terms of reference and other details of the Audit Committee of the Board of Directors
of your Company and the meetings thereof held during the financial year are given in the Report on Corporate Governance
forming part of this Annual Report. The recommendations of the Audit Committee in terms of its Charter were accepted by the
Board of Directors of your Company from time to time during the year under Report.
Compensation and Remuneration Committee
The Compensation and Remuneration Committee of the Board was constituted on April 23, 2004. In terms of the erstwhile
SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999 (‘SEBI ESOP Guidelines’), your
Company re-constituted the Compensation and Remuneration Committee for the administration and superintendence of the
employee stock options schemes on October 4, 2007.
The Board of Directors at its meeting held in April 2014 named this Committee as the Nomination and Remuneration Committee
for the purpose of provisions under the Act. As regards the terms of the Compensation and Remuneration Committee of your
Company, the same are in line with the statutory terms of the Nomination and Remuneration Committee.
The details including the composition and terms of reference of the Compensation and Remuneration Committee and the
meetings thereof held during the financial year and the Remuneration Policy of the Company are given in the Report on
Corporate Governance section forming part of this Annual Report.
Nomination and Governance Committee
The Board of Directors at its meeting held in April 2014 named this Committee as the Nomination and Remuneration Committee
for the purpose of provisions under the Act. As regards the terms of the Nomination and Governance Committee of your
Company, the same are in line with the statutory terms of the Nomination and Remuneration Committee.
The details including the composition and terms of reference of the Nomination and Governance Committee of the Board
of Directors of your Company and the meetings thereof held during the financial year are given in the Report on Corporate
Governance section forming part of this Annual Report.
The policy for appointment of a new director on the Board is as follows:
The Board of Directors decides the criteria for the appointment of a new director on the Board from time to time. The criteria
may include candidate’s expertise area, age, industry experience, professional background, association with other companies
and such other things.
Once the criteria are determined, the Board directs the Nomination and Governance Committee to compile profiles of suitable
candidates through networking, industry associations and business connects. The Nomination and Governance Committee
considers each and every profile on the decided parameters and shortlists the candidates. Shortlisted candidates are then
interviewed personally or through tele-conference by the Members of the Committee.

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Once the Committee is convinced about a candidate’s competency, his/her business acumen, commitment towards his/
her association with your Company and his/her availability for your Company on various matters as and when they arise, it
recommends the candidate to the Board of Directors for its further consideration.
Employees’ remuneration
In terms of the provisions of Section 197(12) of the Act read with Rule 5 of the Companies (Appointment and Remuneration
of Managerial Personnel) Rules, 2014, a statement showing the names and other particulars of the employees drawing
remuneration in excess of the limits set out in the said rules are provided in the Annexure B of the Report.
Employee stock option plans
Your Company has various stock option plans for its employees. Details of the stock options granted under various employee
stock option schemes are provided in the Annexure C of the Report.
During the year under report, no employee has been granted stock options, equal to or exceeding 1% of the issued capital
(excluding outstanding warrants and conversions) of your Company at the time of grant.
In line with the Ind AS 102 – “Share Based Payments”, your Company has computed the cost of equity-settled transactions by
using the fair value of the options at the date of the grant and recognized as employee compensation cost over the vesting
period.
No employee stock options were granted during FY 2017-18 and FY 2018-19.
No new options were granted to the Independent Directors of your Company during the year under report. Shares held by
Independent Directors and Non-Executive Non-Independent Directors as on March 31, 2019 are as under:

Name of the Director Shares held Shares held Shares held Total
(through exercise (through allotment (through market Shares held
of vested stock under a pre IPO purchase / IPO)
options) scheme)
Ms. Roshini Bakshi NIL NIL NIL NIL
Mr. Pradeep Bhargava 13,600 NIL NIL 13,600
Mr. Sanjay Bhattacharyya 14,000 NIL NIL 14,000
Mr. Guy Eiferman NIL NIL NIL NIL
Dr. Anant Jhingran NIL NIL NIL NIL
Mr. Thomas Kendra NIL NIL NIL NIL
Prof. Deepak Phatak NIL NIL NIL NIL
Mr. Prakash Telang 14,000 NIL 4,000 18,000
Mr. Kiran Umrootkar 6,000 NIL NIL 6,000
The Compensation and Remuneration Committee at its meetings held in January 2019 and April 2019, has approved RSUs to
the Executive Directors of your Company which will be granted to them over the next 4 (four) years in a phased manner.
Of them, the details of grants already made to them between April 1, 2019 and the date of this report are as follows:

Name of the No. of RSUs Dates of Criteria for vesting

Executive Director already vesting Time Performance Basis of vesting (For
granted based based Performance based RSUs)
Mr. Christopher O’Connor 250,000 1-May-2019 to 80% 20% Based on Company Revenue
30-Jun-2022 Growth and EPS Growth
Mr. Sandeep Kalra 200,000 1-May-2020 to 75% 25% Based on TSU Revenue Growth
31-May-2021 and EPS Growth
Mr. Sunil Sapre 50,000 1-May-2020 to 75% 25% Based on Company Revenue
31-May-2021 Growth and EPS Growth

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During the financial year 2018-19, pursuant to the resolutions passed by the Compensation and Remuneration Committee
of the Board of Directors by way of circulation, employees including ex-employees exercised their stock options for
shares which were already vested in their name. During this exercise, 560,732 (Five Hundred Sixty Thousand Seven
Hundred and Thirty Two) i.e. 0.68% Equity shares of the total paid-up capital were transferred from PSPL ESOP
Management Trust to these ESOP grantees at an aggregate value of ` 68.92 Million under various ESOP Schemes of
your Company.
Your Company has 12 (Twelve) ESOP Schemes as on March 31, 2019 under which options were granted to various Independent
Directors, employees of the Company and its subsidiaries, details of which are given elsewhere in this Annual Report.
Shares Suspense Account
Your Company had opened an ‘Unclaimed Securities Suspense Account’ on behalf of the allottees who were entitled to the
Equity Shares under the initial public offering. Some of the Equity Shares could not be transferred to the respective allottees
due to technical reasons. Such shares were held in ‘Unclaimed Securities Suspense Account’, to be transferred to allottees as
and when they approach your Company. Your Company has been regularly uploading details of such unpaid/unclaimed shares
on its website and on the website of the Ministry of Corporate Affairs as well.
During the year under report, out of 280, 140 unclaimed Equity Shares in the Suspense Account were transfered to the IEPF
Suspense Account after following the due process. The other 140 Equity Shares are the bonus shares issued and alloted on
March 12, 2015. This shares will be transferred to the IEPF Suspense Account as and when they become due for transfer.
The current balance in the above-mentioned Suspense Account as on March 31, 2019 is 140 Equity Shares owned by 7 allottees.
The details of equity shares held in an ‘Unclaimed Securities Suspense Account’ are as follows:

Sr. Particulars Details

No.
1. Aggregate number of allottees in the Unclaimed Securities Suspense Account lying at the 7 allottees
beginning of the financial year 2018-19
2. Aggregate number of the outstanding Equity Shares in the Unclaimed Securities Suspense 280 Equity Shares
Account lying at the beginning of the financial year 2018-19
3. Number of allottees who approached issuer for transfer of shares from Unclaimed Securities NIL
Suspense Account during the financial year 2018-19
4. Number of shares transferred from Unclaimed Securities Suspense Account during the NIL
financial year 2018-19 to the allottees
5. Number of shares transferred from Unclaimed Securities Suspense Account during the 140 Equity Shares
financial year 2018-19 to the IEPF Suspense Account
6. Aggregate number of allottees in the Unclaimed Securities Suspense Account lying at the 7 allottees
end of the financial year 2018-19
7. Aggregate number of outstanding equity shares in the Unclaimed Securities Suspense 140 Equity Shares
Account lying at the end of the financial year 2018-19

Note – Voting rights on the above-mentioned equity shares are kept frozen till the rightful owner of such equity shares claim
these shares. Once the rightful owner claims these shares, the shares along with accumulated dividend will be transferred to
the rightful owner.
Transfer of Unclaimed Dividend and corresponding shares to the IEPF Authority
During the year under report, the Company has transferred the unclaimed and unpaid dividend of ` 97,407 to the IEPF Authority.
Further, 69 corresponding shares on which the dividend was unclaimed for seven consecutive years were transferred as per the
requirement of the IEPF Rules. The details are provided in the shareholder information section of this Annual Report and also
available on our website: https://www.persistent.com/investors/unclaimed-dividend/
Institutional Holding
As on March 31, 2019, the total institutional holding in your Company stood at 42.80% of the total share capital.

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Particulars required as per Section 134 of the Companies Act, 2013

As per Section 134 of the Act, your Company has provided the Consolidated Financial Statements as on March 31, 2019. Your
Directors believe that the consolidated financial statements present a more comprehensive picture as compared to standalone
financial statements. A statement showing financial highlights of the subsidiary companies is enclosed to the consolidated
financial statements.
The Annual Report of your Company, though does not contain full financial statements of the subsidiary companies, your
Company will make available the audited annual accounts and related information of the subsidiary companies, upon request
by any Member of your Company.
Consolidated financial statements
Consolidated financial statements of your Company and its subsidiaries as at March 31, 2019 are prepared in accordance with
the Indian Accounting Standard (Ind AS) 110 on ‘Consolidated Financial Statements’ notified by the Ministry of Corporate Affairs
(MCA), and forms part of this Annual Report.
Subsidiary Companies, Associate Companies and Joint Ventures
The details of the subsidiaries and associate of your Company as on March 31, 2019 are as under:
(In ` Million)
Total Income Net Profit/(Loss)
Name of the Period of
For the year For the year For the year For the year
Entity and Country Status Establishment/
ended March ended March ended March ended March
of incorporation Acquisition
31, 2019 31, 2018 31, 2019 31, 2018
Persistent Systems Wholly Owned October 2001 19,754.37 17,329.58 (174.76) (251.56)
Inc., USA (PSI) Subsidiary
Persistent Systems Wholly Owned April 2007 145.87 307.00 11.80 15.17
Pte. Ltd., Singapore Subsidiary
(Co. Reg. No.
200706736G)
Persistent Systems Wholly Owned April 2011 979.73 404.18 43.37 52.88
France S.A.S., Subsidiary
France
Persistent Systems Wholly Owned September 2013 473.35 408.90 123.41 71.59
Malaysia Sdn. Bhd., Subsidiary
Malaysia
Persistent Systems Wholly Owned December 2016 54.51 1.45 (15.19) (37.33)
Germany GmbH, Subsidiary
Germany
Persistent Telecom Step-down January 2012 1,284.13 1,192.85 24.60 (78.96)
Solutions Inc., USA subsidiary (Wholly
Owned Subsidiary
of PSI)
Akshat Corporation Step-down July 2015* 13.36 112.50 (0.92) 8.56
(dba R-Gen subsidiary (Wholly
Solutions), USA Owned Subsidiary
(dissolved on of PSI)
December 21, 2018)
Persistent Systems Step-down February 2016 525.42 548.56 28.11 41.00
Israel Ltd., Israel subsidiary (Wholly
Owned Subsidiary
of PSI)
Persistent Systems Step-down March 2016 215.62 176.75 (22.29) 0.62
Mexico S.A. de C.V., subsidiary (Wholly
Mexico Owned Subsidiary
of PSI)

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Total Income Net Profit/(Loss)

Name of the Period of
For the year For the year For the year For the year
Entity and Country Status Establishment/
ended March ended March ended March ended March
of incorporation Acquisition
31, 2019 31, 2018 31, 2019 31, 2018
Herald Technologies Step-down August 2018** 0.07 NA (10.29) NA
Inc., USA subsidiary (Wholly
Owned Subsidiary
of PSI)
Aepona Group Step-down October 2015* 5.84 - (1,360.89)# -
Limited, Ireland subsidiary (Wholly
Owned Subsidiary
of Aepona Holdings
Limited)
Valista Limited, Step-down October 2015* 16.50 6.21 14.95 (7.84)
Ireland subsidiary (Wholly
(Under liquidation) Owned Subsidiary
of Aepona Group
Limited)
Aepona Limited, Step-down October 2015* 397.34 524.56 (96.85) (224.58)
United Kingdom subsidiary (Wholly
Owned Subsidiary
of Aepona Group
Limited)
Persistent Systems Step-down October 2015* 212.16 209.66 34.62 25.06
Lanka (Private) subsidiary (Wholly
Limited, Sri Lanka^ Owned Subsidiary
of Valista Limited)
PARX Werk AG, Step-down August 2017* 518.74 334.80 15.00 (31.39)
Switzerland subsidiary (Wholly
Owned Subsidiary
of Persistent
Systems Germany
GmbH)
PARX Consulting Step-down August 2017* 473.52 315.82 (59.88) 0.12
GmbH, Germany subsidiary (Wholly
Owned Subsidiary
of PARX Werk AG)
KIisma e-Services Associate Company March 2012 - - - -
Private Limited,
India
* Period of Establishment/ Acquisition mentioned above is the period in which the entities are acquired by your Company
directly or through its subsidiaries.
** Acquired during FY 2018-19
# Includes provision for investment and inter corporate deposits given to its wholly owned subsidiary in the UK prior to its
acquisition by Persistent group. Since the net worth of the subsidiary had eroded, the same is provided for. Being the inter
company transaction, it is eliminated in the consolidated financial statments.
^ The Name of Aepona Software (Private) Limited has been changed to ‘Persistent Systems Lanka (Private) Limited’ with effect
from May 19, 2017.
The Policy for determining material subsidiaries of your Company is available on your Company’s website at
https://www.persistent.com/investors/policy-on-material-subsidiary/
Till the date of this report, your Company has established new branch offices at Santa Clara and North Carolina, USA.
These branch offices will help your Company with respect in taxation, transfer pricing and business negotiations with direct
customers of your Company.

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Particulars of Loans and Guarantees given and Investments made

Loans, guarantees and investments covered under Section 186 of the Act form part of the notes to the financial statements
provided in this Annual Report. (Refer notes 6, 7, 15, 16, 34 and 43 of the standalone financial statements)
Related Party Transactions
The Policy to determine materiality of related party transactions and dealing with related party transactions as approved by
the Board of Directors is available on your Company’s website at
https://www.persistent.com/investors/related-party-transactions-policy/
During the year under report, your Company had not entered into any material transaction with any party who is related to it
as per the Act. There were certain transactions entered into by your Company with its foreign subsidiaries and other parties
who are related within the meaning of Indian Accounting Standard (Ind AS) 24. Attention of Members is drawn to the disclosure
of transactions with such related parties set out in Note No. 34 of the Standalone Financial Statements, forming part of this
Annual Report. The Board of Directors confirm that none of the transactions with any of related parties were in conflict with
your Company’s interest. The list of Related Party Transactions entered by your Company for FY 2018-19 (on consolidated basis)
are available on https://www.persistent.com/wp-content/uploads/2019/05/persistent-systems-rpt-march-31-2019.pdf
The related party transactions are entered into based on considerations of various business exigencies, such as synergy in
operations, sectoral specialization and your Company’s long-term strategy for sectoral investments, optimization of market
share, profitability, legal requirements, liquidity and capital resources of subsidiaries.
All related party transactions are entered into on an arm’s length basis, are in the ordinary course of business and are intended
to further your Company’s interests.
The information on transactions with related parties pursuant to Section 134(3)(h) of the Act read with Rule 8(2) of
the Companies (Accounts) Rules, 2014 are given in Annexure D in Form No. AOC-2 and the same forms an integral part of
this report.
Corporate Governance
A separate section on Corporate Governance with a detailed compliance report as stipulated under the Listing Regulations and
any other applicable law for the time being in force, forms an integral part of this Report.
Compliance Certificate from the Practicing Company Secretary regarding compliance of conditions of Corporate Governance
as stipulated in the Listing Regulations forms an integral part of this Annual Report.
Management Discussion and Analysis
Report on Management Discussion and Analysis as stipulated under the Listing Regulations and any other applicable law for
the time being in force based on audited, consolidated financial statements for the financial year 2018-19, forms an integral
part of this Annual Report.
Business Responsibility Report
Report on Business Responsibility as stipulated under the Listing Regulations and any other applicable law for the time being
in force describing the initiatives taken by the Management from an environmental, social and governance perspective, forms
an integral part of this Annual Report.
Conservation of energy, technology absorption, research and development, foreign exchange earnings and outgo
Your Company has made the necessary disclosures in this Report in terms of Section 134(3) of the Act read with Rule 8 of the
Companies (Accounts) Rules, 2014. Your Company strives to conserve energy on a perpetual basis. Your Company has procured
various energy saving devices and systems, which help in conserving energy and has resulted into a significant savings in the
energy cost.
Carbon management and sustainable development provide business with some of the greatest opportunities towards
sustainability. Your Company reduced carbon footprints by taking energy conservation measures. Your Company continues to
take various measures on energy saving.
Your Company has reduced excessive illumination levels to standard levels in all common areas by using switching or delamping
and aggressively controlled lighting with new sensor technologies. Like in the previous year, your Company has continued to
maximize the use of energy efficient flat monitors, VRV air-conditioning systems, solar energy for usage of hot water, LED logo

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on buildings, LED lighting in all areas, installation of power management software for desktops, Watt Miser system in AHUs,
Enpower Computer Management system and VFD Installation for Fresh Air AHU systems for conservation of energy.
Your Company has replaced all/ partly CFL fitting by efficient LED light fittings at its Bhageerath, Aryabhata- Pingala, Hinjawadi,
SEZ-Hinjawadi, Goa (Bhaskar) and Nagpur facilities and have proposed to use the same in other facilities. Your Company has
regulated working of lifts, coffee vending machines, ventilation systems and water coolers in its premises.
Your Company undertakes various initiatives to save energy - one of them is usage of solar energy
1. A 250 KW rooftop solar power plant was commissioned on the terrace of Aryabhata – Pingala facility on April 30, 2015
and it generated 174,751 units in the financial year 2018-19. Since commissioning of the plant, 701,641 units have been
generated till March 31, 2019.
2. A 276 KW rooftop solar power plant was commissioned on the terrace of Hinjawadi facility in February 2018 and inaugurated
on Gudipadwa, March 18, 2018 and it generated 429,795 units in the financial year 2018-19. Solar Plant is designed to
generate 4.15 lakhs units/annum.
3. A 207 KW rooftop solar rooftop plant execution work has been started on the terrace of Gargi-Maitreyi in Nagpur. Expected
completion date of this plant is June 30, 2019. Solar plant is designed to generate 2.70 Lakh unit/annum.
4. Installed the following solar power plants through CSR activity under community development and the MWH unit generated
in financial year 2018-19:
• Pune Railway Station - 160 KW – 234,731 units p.a.
• Hyderabad Railway station - 229 KW - 305,550 units p.a.
• Tarachand Hospital, Pune - 64.5 KW – 72,853 units p.a.
Your Company has made efforts to ensure that there is no cool air leakage from its premises and has adopted measures to
ensure optimum usage of air conditioners throughout its premises. A building automation system has been implemented to
control working of air conditioners and to make them more power efficient. The power consumption of air conditioning has
been reduced by 18% since the cold aisle containment work has been completed in Data Center, Hinjawadi. VFD system has
been installed for fresh air AHUs in air conditioning systems.
As a part of your Company’s Green Movement, two 2.1 MW windmills are operational at Dhule and Sangali District in
Maharashtra, India. During the financial year 2018-19, Dhule windmill generated 4,839,123 units while Sangali windmill generated
2,898,593 units.
Your Company has installed Ozone based air conditioning systems at a few locations. Modifications have been made in Data
Centre arrangement to reduce power consumption. Ground water is used for landscaping to reduce consumption of treated
water. A Sewage Treatment Plant was installed at the Gargi-Maitreyi in Nagpur, Aryabhata-Pingala in Pune and Goa facilities of
your Company and recycled water through these plants is used for gardening.
Your Company celebrated ‘No Plastic Days’ to promote awareness of using plastic and encourage employees to carry cloth
or paper bags whenever possible. ‘Zero Plate Wastage Week’ was another event celebrated in all the Company facilities. All
the waste papers are shredded and disposed to scrap at all facilities. E-waste and hazardous waste are to be handed over to
authorized agency approved by the State Pollution Control Board. Your Company also encouraged all employees to bring their
household e-waste in your Company to dispose it appropriately.
The Conservation of Trees campaign aims to spread awareness about tree conservation.
Employees are encouraged to
• Plant at least one sapling in their vicinity
• To date, Persistent has distributed more than 1,600 saplings.
• Reduce paper wastage and make prints only when necessary; Persistent organizes ‘No Printer Days’ to promote awareness.
‘Tree Plantation Drive’ including tree maintenance program for making Mother Earth greener was organized during the year
under review.
National Commercial Energy Benchmarking Initiative was taken up with a goal to establish a framework to standardize energy
data collection, baseline setting for ‘typical’ commercial buildings, energy performance target setting and monitoring, and use
the information to improve energy efficiency in buildings. With reference to the data collected by the BEE to judge Energy
Performance Index (EPI) and total energy consumption, your Company earned star ratings for its following facilities:

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 Shaping the future of software driven business

• Bhageerath, Pune: EPI 171 – Received 2-Star Rating.

• Aryabhata-Pingala, Pune: EPI 190 – Received 1-Star Rating.
All the facilities of your Company in India are certified by DNVGL for ISO 14001:2015 and are upgraded to Occupational Health
and Safety Management System Standard by ISO 45001:2018 certifications after rectification audit (January 2019) and are
now initiated. Best practices to preserve the environment/health and safety are undertaken by your Company even during
constructing its various premises by using crush sand, fly ash bricks and double glass unit, use of gypsum and recycled wood
to protect the environment.
Also, all the facilities of your Company in India are certified by AGS for ISO 14064-1:2006 Greenhouse gas inventory and
achieved reduction of 6.87% against target of 3%.
It is your Company’s constant endeavor to conserve and save the environment and hence your Company has launched the
Green Persistent Movement to support the same. As power cost constitutes an insignificant part of the total expenses, the
financial impact of these measures is not material.
Other ISO Certifications
The details about the other ISO certifications for technical processes and systems are provided in the Annexure F to this Report
and which forms an integral part of this report.
The particulars of expenditure on Research and Development on an accrual basis are as follows:
(In ` Million)
Particulars Year ended on March 31
2019 2018

Capital expenditure 0.46 -

Revenue expenditure 182.35 281.99
Total research and development expenditure 182.81 281.99
As a percentage of total income 0.89% 1.52%

The particulars of foreign exchange earnings and outgo based on actual inflows and outflows are as follows:
(In ` Million)
Particulars Year ended on March 31
2019 2018

Earnings 20,488.65 17,722.02

Outgo 6,281.03 4,858.47

Adequacy of Internal Financial Controls

The Board is responsible for establishing and maintaining adequate internal financial control as per Section 134 of the Act.
The Board has laid down policies and processes in respect of internal financial controls and such internal financial controls were
adequate and were operating effectively. The internal financial controls covered the policies and procedures adopted by your
Company for ensuring orderly and efficient conduct of business including adherence to your Company’s policies, safeguarding
of the assets of your Company, prevention and detection of fraud and errors, accuracy and completeness of accounting records
and timely preparation of reliable financial information.
Internal Audit
Your Company has an in-house internal audit team since 2005 and comprises of personnel with professional qualifications and
certifications in audit and is rich on diversity. The audit team hones its skills through a robust knowledge management program
to continuously assimilate the latest trends and skills in the domain and to retain the knowledge gained for future reference
and dissemination.
The Head of Internal Audit team reports to the Chairman of the Audit Committee and is a permanent invitee to the quarterly
meetings of the Audit Committee and the Risk Management Committee. Findings of the audits are presented to the Audit
Committee at its quarterly meetings.
The function provides an independent, objective assurance and consulting services to value-add and improve Operations
of Business Units. The audits carried out through-out the year, are based on an internal audit plan, which is reviewed and

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approved by the Audit Committee every quarter. In line with the industry practice and regulatory requirements, the internal
audit function covers the areas such as review of Internal Financial Controls, Business and Financial operations including
regulatory Compliances.
Reporting of frauds by Auditors
Durng the year under report, neither the Statutory Auditors nor the Secretarial Auditors as reported to the Audit Committee,
under Section 143(12) of the Act, any instance of fraud committed against the Company by its officers or employees, the details
of which would need to be mentioned in the report of the Directors.
Directors’ responsibility statement
The Directors state that:
1. In the preparation of the annual accounts, the applicable Accounting Standards have been followed and there is no
material departure;
2. Your Directors have selected such accounting policies and applied them consistently and made judgments and estimates
that are reasonable and prudent so as to give a true and fair view of the state of affairs of your Company as at
March 31, 2019 and of the profit of your Company for that year;
3. Your Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance
with the provisions of the Companies Act, 2013 for safeguarding the assets of your Company and for preventing and
detecting fraud and other irregularities, if any;
4. The annual accounts have been prepared on a going concern basis;
5. Your Directors, had laid down internal financial controls to be followed by your Company and that such internal financial
controls are adequate and were operating effectively;
6. Your Directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such
systems are adequate and operating effectively.
Extract of Annual Return
Pursuant to the provisions of the Section 92(3) of the Act read with Rule 12(1) of the Companies (Management and Administration)
Rules, 2014, the extract of Annual Return of your Company for the financial year ended on March 31, 2019 is provided as
Annexure E to the Directors Report and forms an integral part of this Annual Report.
Vigil Mechanism (Whistle Blower Policy)
The details of the vigil mechanism (whistle blower policy) are given in the Report on Corporate Governance forming part of this
Annual Report. Your Company has uploaded the policy on its website at
https://www.persistent.com/ethical-practices-at-persistent-systems/whistle-blower-policy/
Risk Management Policy
Report on Risk Management based on the risk management policy developed and implemented at your Company for the
Financial Year 2018-19 forms an integral part of this Annual Report.
Project Fusion - New ERP System
During the year under report, your Company has implemented a New ERP System named as Fusion at all locations of your
Company. This system is a complete transformation of ERP+HCM and has key features such as full SaaS deployment, Integration
with external systems, available on all endpoints, Industry best practices and Embedded Business Intelligence.
This system mainly covers functions viz., financials (Including Procurement, Travel, Asset Management), Project Portfolio
Management (Services and Products), Enterprise Performance Management (including Cost and Revenue Budgeting), Human Capital
Management. This modernized cloud platform provides additional opportunities to business, actionable insights for business agility,
cost efficiencies, improved user and customer experience, management of data and privacy risks.
This system implementation has been started in June 2018 and is proposed to be completed by June 2019.
The estimated life of the system is approx. 10 years from its implementation.

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Performance Evaluation of the Board, its Committees and Directors

Your Company conducted the annual performance evaluation of the Board, its various committees, the Chairman of the Board
and other directors individually. The performance of the Board was evaluated by the Board after seeking inputs from all the
directors and senior management on the basis of criteria such as the board composition and structure, effectiveness of board
processes, information and functioning, etc. This was conducted in March and April 2019 by an external management consultant
and the findings of the evaluation were presented at the meeting of the Nomination and Governance Committee and the Board
of Directors held in April 2019.
Qualitative comments received during the Board evaluation were as follows:
– The Board was very active in planning process. Also, in CEO selection and transition process, their suggestions were very
valuable and appropriate.
– Board meetings were conducted in a very transparent and open environment, concerns conveyed without reservation and
the Board has been forthright.
– The Board has evolved to become more diverse and complementary, coverage is excellent.
Previous year’s observations (For FY 2017-18) and actions taken are as follows:

Sr. Observations Actions taken

No.
1. Going forward, during evaluation process, the focus It has been decided that henceforth the ranking or rating system
may be given more on qualitative comments. on evaluation questions be changed to qualitative comments
and the same was implemented immediately thereafter.
2. The Board members may share the best practices An appeal was made to the Board members to share the best
observed by them in other companies during the practices observed by them in other companies during the
relevant discussions. relevant discussions. Accordingly, the Directors have started
sharing the best practices observed by them in other companies.
Proposed actions based on current year’s observations:

Sr. Observations Actions proposed

No.
1. The Board may consider setting aside time in every
meeting to discuss certain themes in depth – thinking
big, developing the next generation of leaders, M&A,
The observations have been communicated to the Board and
etc. This could be decided in advance or based on the
accordingly, necessary steps will be taken in due course.
issues at the time of the meeting.
2. A program of Directors mentoring specific leaders
may be introduced again.
Disclosure of Cost Audit
Your Company had filed Form 23C for appointment of Cost Auditor relating to its activities of generation of electricity from
windmill turbine under the Companies (Cost Audit Report) Rules, 2011. However, based on another Circular dated November 30,
2011 issued by the Ministry of Corporate Affairs (MCA), your Company claimed exemptions from the requirement of the Cost
Auditor for the said purposes and accordingly, had written a letter dated December 19, 2012 to MCA, Cost Audit Branch, for
withdrawal of the appointment of the said Cost Auditor as well as cancellation of the Form 23C so filed. Reply to the said letter
is awaited from the concerned office of the MCA.
Listing with the stock exchanges
The Equity Shares of your Company are listed on BSE Limited (BSE) and the National Stock Exchange of India Limited (NSE)
since April 6, 2010. Listing fees for the financial year 2018-19 have been paid to both BSE and NSE.
Secretarial Standards
The Ministry of Corporate Affairs notified the Secretarial Standard on Meetings of the Board of Directors (SS–1), Secretarial
Standard on General Meetings (SS–2), Secretarial Standard on Dividend (SS-3) and Secretarial Standard on ‘Report of the Board
of Directors’ (SS-4). Your Company complies with the same.

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Your Company will comply with the other Secretarial Standards issued by the Institute of Company Secretaries of India (ICSI)
as and when they are made effective.
Disclosure under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013
Your Company has an Anti-Harassment Policy in place which is in line with requirements of the Sexual Harassment of Women
at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (the ‘Act’). All employees (permanent, contractual, temporary
and trainees) are covered under this policy.
Your Company has constituted an Internal Complaints Committee(s) (ICC) across all Company locations in India and abroad to
consider and resolve all sexual harassment complaints reported to this Committee. The constitution of the ICC is as per the
Act and the Committee includes an external member from NGOs with relevant experience at the India locations and half of the
total members of the ICC are women. The Ethics Committee at the global locations, acts in the capacity of Internal Complaints
Committee where the local law over there does not enforce constitution of such committee.
Investigation is conducted and the decisions made by the ICC at the respective location, and the senior women employee is the
presiding officer over every case.
During the year under report, your Company has received one complaint of sexual harassment which was disposed during the
year under the report. As on March 31, 2019, there were no pending cases of sexual harassment in your Company.
Corporate Social Responsibility
Your Company voluntarily started contributing to the CSR initiatives since 1995-96 i.e. much before the legislations made it
compulsory for the corporates. Your Company used to donate 1% of its consolidated net profits till FY 2011-12 and 1.25% of its
consolidated net profits till FY 2013-14. Thereafter, the Company is contributing 2% of the average net profit on unconsolidated
basis of preceding three financial years.
To institutionalize the Company’s CSR initiatives and to develop a systematic approach to administer the process of grant of
donations, your Company formed a Public Charitable Trust - ‘Persistent Foundation’ in the financial year 2008-09.
This year, Persistent Foundation is celebrating 10th year of its establishment. During these 10 years, the Foundation has
contributed to many projects spread across different geographies in association with well-known NGOs to reach out to large
number of beneficiaries. The recently conducted impact assessment study has conferred effectiveness of projects being carried
out by the Foundation for a society at large.
Your Company acknowledges the contribution given by the Foundation to the society and assures its support to the Foundation
for its next journey.
During the year under report, Persistent Foundation (the ‘Foundation’) was able to create excitement among employees to
participate in socially relevant causes. With cooperation of the employees of your Company, the Foundation has set up several
well-defined programs and activities for the promotion of education, health and community development. These activities are
carried out through projects undertaken by the Foundation with the support of the employees and through the Government
authorities, reputed social organizations and institutions.
In addition to contributing ` 70.51 Million to the Foundation, your Company made donations to various charitable institutions
directly and incurred a cost of the technical contribution towards Stri Shakti Abhiyaan Project, an initiative of the NITI Aayog
and coordinated by McKinsey, India. Thus, during the year under report, your Company donated ` 80.36 Million i.e. more than
2% of the Average Net Profits of your Company made during three immediately preceding financial years.
Report on CSR activities of your Company under the provisions of the Act during the financial year 2018-19 is annexed hereto
as Annexure G and forms an integral part of this Annual Report.
Based on the profits of three financial years ending on March 31, 2019, the Committee recommended to the Board of
Directors, the amount of ` 85.21 Million which is to be spent towards CSR activities as per Section 135 of the Act for the
financial year 2019-20.
CSR Committee and CSR Policy
The Board of Directors of your Company has constituted the CSR Committee to help your Company frame, monitor and execute
the Company’s CSR activities under its CSR scope. The Committee defines the parameters and observes them for effective
discharge of the Company’s social responsibility.

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The Board of Directors of your Company has further approved the CSR Policy of your Company to provide a guideline for the
Company’s CSR activities. The CSR Policy is also uploaded on your Company’s website at
https://www.persistent.com/investors/csr-at-persistent/
The Company’s CSR Policy highlights that the need for contributing to the society is very large and your Company can make a
more significant contribution by staying focused on few areas through its social initiatives. The CSR policy recommends that
your Company should encourage Persistent Foundation to contribute in the following areas:
• Health
• Education
• Community Development
• Assistance in Natural Calamities
The constitution of the CSR Committee is provided elsewhere in the Annual Report.
Other matters
Your Directors state that no disclosure or reporting is required in respect of the following items as there were no transactions
on these items during the year under report:
1. Neither the Managing Director nor the Executive Director of your Company receive any remuneration or commission from
any of its subsidiaries.
2. No significant or material orders were passed by the Regulators or Courts or Tribunals which impact the going concern
status and your Company’s operations in future.
Future Outlook
Even though the year under report has been challenging and a year of transition for your Company, the Directors are very
optimistic about the progress made and the results that were observed towards the end of the year. The fundamentals of the
Company are strong and stable.
Your Company has an impressive list of customers who are well-established in their fields. Customers are satisfied with the
work done by the employees of your Company and are keen to extend the work they do with your Company. Your Company has
established an excellent set of partnerships with the leading Companies and these partnerships have helped your Company
establish credibility and leadership as customers are starting to transform their business by becoming software driven business.
The investments made by your Company in technology areas are spot on and your Company is working with and has added
specialists who understand the business domain and they helped your Company to elevate the conversation to business value.
With a new team in place, the Directors expect that your Company will be on an improved growth trajectory and will be able to
post industry leading growth rates in the next few years.
Acknowledgments and appreciation
Your Board places on record the support and wise counsel received from the Government of India, particularly the Department
of Electronics and Information Technology, the Ministry of Corporate Affairs, the Ministry of Finance, the Ministry of Commerce
and Industry, the Reserve Bank of India and the Securities and Exchange Board of India (SEBI) throughout the financial year.
Your Board extends its sincere thanks to the officers and staff of the Software Technology Parks of India - Pune, Nagpur, Goa,
Hyderabad, Bengaluru, Visakhapatnam Special Economic Zone – Andhra Pradesh, SEEPZ Special Economic Zone – Mumbai,
Cochin Special Economic Zone, Central Excise and Customs Department, Department of Revenue, Income Tax Department,
Department of Electronics, Director General of Foreign Trade, Director of Industries, Department of Shops and Establishments,
Department of Telecommunication, Department of Commerce (SEZ Section), Regional Director of Western Region, Registrar
of Companies, Maharashtra, Pune, Goods and Service Tax Department, Infotech Corporation of Goa Limited, Goa Industrial
Development Corporation, National Stock Exchange of India Limited, BSE Limited, Central Depository Services (India) Limited,
National Securities Depository Limited, local Municipal Corporations where Company operates, Maharashtra State Electricity
Distribution Company Limited, Telangana (erstwhile Andhra Pradesh) State Electricity Board, Telangana State Industrial
Infrastructure Corporation, Maharashtra Industrial Development Corporation, Bengaluru Municipal Corporation, Karnataka
Industrial Development Corporation, BSNL and Mobile / Internet Service providers.
Your Board also extends its sincere thanks to M/s. Deloitte Haskins & Sells LLP, Chartered Accountants, Statutory Auditors,
M/s. Joshi Apte & Co., Chartered Accountants, Tax Auditors and M/s. SKO and Associates, Company Secretaries, Secretarial
Auditors for their services to your Company.

102 • Annual Report 2018-19

 Shaping the future of software driven business

Your Board also extends its thanks to ABSA Capital Bank, Axis Bank, Bank of Baroda, Bank of India, Barclays Bank,
Banco Nacional de Mexico S.A., Bank of Tokyo Mitsubishi, BNP Paribas, Chase Bank, Citibank NA, Deutsche Bank, HDFC Bank,
Hongkong and Shanghai Banking Corporation, Silicon Valley Bank, State Bank of India, Standard Charted Bank, Syndicate Bank,
Union Bank of India, Wells Fargo Bank and their officials for extending excellent support in all banking related activities.
Your Board places on record its deep sense of appreciation for the committed services of the associates of your Company at
all levels.
Your Board thanks the investors and shareholders for placing immense faith in them.
Your Board takes this opportunity to express its sincere appreciation for the contribution made by employees at all levels in
your Company. The consistent growth was made possible by their hard work, solidarity, cooperation and support.
For and on behalf of the Board of Directors

Dr. Anand Deshpande

Chairman and Managing Director
Pune, June 11, 2019  DIN: 00005721

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 Shaping the future of software driven business

Annexure A to the Report of the Directors

Form No. MR-3
Secretarial Audit Report
[Pursuant to Section 204(1) of the Companies Act, 2013 and
Rule 9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014]
for the financial year ended on March 31, 2019
The Members
Persistent Systems Limited
Bhageerath, 402 Senapati Bapat Road,
Pune 411 016
(CIN: L72300PN1990PLC056696)
We have conducted the secretarial audit of the compliance of statutory provisions under the Companies Act, 2013, regulations
laid down by Securities and Exchange Board of India, Foreign Exchange Regulations, EXIM Laws, STPI/SEZ Scheme and
Customs listed hereinafter and the adherence to good corporate practices by Persistent Systems Limited (hereinafter called
the “Company”) for the financial year ending March 31, 2019. Secretarial Audit was conducted in a manner that provided us a
reasonable basis for evaluating the corporate conducts/statutory compliances and expressing our opinion thereon.
Management’s Responsibility
Management is responsible for the preparation and filing of all the forms, returns, documents for the compliances under
the Companies Act, 2013, regulations laid down by Securities and Exchange Board of India, Foreign Exchange Regulations,
EXIM Laws, STPI/SEZ Scheme and Customs listed hereinafter, and to ensure that they are free from material non-compliance,
whether due to fraud or error.
Secretarial Auditor’s Responsibility
Secretarial Audit is a process of verification of records and documents on sample basis to check compliance with the provisions
of laws and rules/procedures under the Companies Act, 2013, regulations laid down by Securities and Exchange Board of India,
Foreign Exchange Regulations, EXIM Laws, STPI / SEZ Scheme and Customs listed hereinafter. The procedure for secretarial
audit is selected on the secretarial auditor’s judgment, including the assessment of the risks of material non-compliance of the
documents filed. In making those risks assessments, the secretarial auditor considers internal control relevant to the Company’s
preparation and fair presentation of the documents in order to design secretarial audit procedures that are appropriate in the
circumstances.
Our responsibility is to express an opinion on the secretarial compliances of the aforesaid laws done by the Company on the
basis of our audit. We have conducted our audit solely on the basis of the compliances and filing done by the Company under
the aforesaid laws.
Based on our verification of books, minutes books, forms and returns filed and other records maintained and made available
to us, by the Company and also the information provided by the Company, its officers, agents and authorized representatives
during the conduct of secretarial audit, we report that, in our opinion, the Company has during the financial year ended on
March 31, 2019, complied with the statutory provisions listed hereunder and also that the Company has proper Board processes
and compliance mechanism in place to the extent, in the manner and subject to the reporting made hereinafter:
We have examined the books, minutes book, forms and returns filed and other records maintained and made available to us,
by the Company for the financial year ended on March 31, 2019, according to the provisions of:
1. The Companies Act, 2013 (the Act) and the rules made thereunder;
2. The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and the rules made thereunder;
3. Regulation 55(A) (1) of the SEBI (Depositories and Participants) Regulations, 1996;
4. Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder to the extent of Foreign Direct
Investment, Overseas Direct Investment;
5. The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992
(‘SEBI Act’):
(a) Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015;
(b) The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011;

104 • Annual Report 2018-19

 Shaping the future of software driven business

(c) The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015;
(d) The Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014;
6. The Exim Laws, STP Scheme, SEZ and Customs Laws:
(a) The Foreign Trade Policy (Exim Policy) and Procedures thereunder;
(b) Foreign Trade (Development and Regulation) Act, 1992;
(c) Software Technology Parks Scheme;
(d) Special Economic Zones Act, 2005 and Special Economic Zones Rules, 2006 (State Acts, Rules and Policies made
thereunder);
(e) The Customs Act, 1962
7. The Information Technology Act, 2000 and The Rules made their under.
8. The Copyright Act, 1957.
9. The Patent Act, 1970
10. The Trademark Act, 1999
We have also examined compliance with the applicable clauses of the Secretarial Standards issued by the Institute of Company
Secretaries of India to the extent it is applicable.
Our report is, therefore, based on the personal visits and verification of records made available at the Pune location. We have
not visited the premises located at Bengaluru, Hyderabad, Goa and Nagpur to check the compliance status and our compliance
report is based on the records which were made available for audit of the aforesaid locations.
During the year under review, the Company has complied with the provisions of the Act, Rules, Regulations, Guidelines,
Standards mentioned above subject to the following observations:
A. There was a delay of one day in intimating to the stock exchanges about loss of share certificate.
B. Pursuant to Regulation 47(2) of the SEBI (Listing Obligations and Disclosure Requirements), Regulations, 2015, the
Company has not provided link of the website where further details are available in certain newspaper advertisements.
C. The Company filed form for appointment of Whole Time Director with the Registrar of Companies, beyond prescribed time.
The said form has been approved by the Registrar of Companies.
D. The Company filed Form IEPF 1 and IEPF 4 with the Registrar of Companies, beyond prescribed time.
E. Under the Foreign Exchange Management Act, 1999, there was delay in two cases for submission of Forms ODI relating to
reporting of certain events in case of stepdown subsidiaries.
We further report that the Board of Directors of the Company is duly constituted with proper balance of the Executive Directors,
Non-Executive Directors and Independent Directors.
Adequate notice, agenda and detailed notes on agenda are given to all directors to schedule the Board Meetings at least seven
days in advance. Consents from all the Directors have been received where meeting has been held at shorter notice.
Based on the information provided by the Company, a system exists for seeking and obtaining further information and
clarifications on the agenda items before the meeting and for meaningful participation at the meeting.
Based on inspection of the minutes of the Board of Directors, there were no dissenting views mentioned by the members of
the Board of Directors.
We further report that there are adequate systems and processes in the Company commensurate with the size and operations
of the Company to monitor and ensure compliance with applicable laws, rules, regulations and guidelines. A quarterly
compliance certificate providing status of the compliance with the requirements of the applicable acts and rules is submitted
by the respective department heads of the Company which is placed before the Board in their meeting along with the action
taken report.
For SKO And Associates
Company Secretaries
Pallavi Salunke
Partner
Place: Pune FCS No.: 5640
Date: May 27, 2019 CP No.: 4453

Report of the Directors • 105

 Shaping the future of software driven business

Annexure B to the Report of the Directors

A. Details of the Remuneration as required under Section 197(12) of the Companies Act, 2013 read with Rule 5(1) of
the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.
1. The percentage increase in remuneration of each Director, Chief Financial Officer and Company Secretary during the
financial year 2018-19, ratio of the remuneration of each Director to the median remuneration of the employees of the
Company for the financial year 2018-19 and the comparison of remuneration of each Key Managerial Personnel (KMP)
against the performance of the Company are as follows:

Sr. Name of Director / Remuneration % increase in Ratio of Comparison of the

No. KMP and Designation of Director Remuneration in remuneration of remuneration of the KMP
/ KMP for the financial year each Director against the performance of
financial year 2018-19 to median the Company
2018-19 remuneration of
(` Million) employees
a. Dr. Anand Deshpande 21.79 11.51 19.90
Chairman and
The increase
Managing Director
in revenue
b. Sunil Sapre 12.47 8.42 %^ (excluding 10.59 (excluding
was
Executive Director and value of perquisite value of
13.11% and
Chief Financial Officer on exercise of Stock perquisite on
decrease
Options ` 0.88 exercise of Stock
in Profit After
Million FY 2018-19 Options)
Tax was 7.92%
and ` 1.02 Million
for FY 2017-18)
c. Roshini Bakshi 2.20 10.00 % 2.01
Independent Director
d. Pradeep Bhargava 2.78 3.54% 2.53
Independent Director
e. Sanjay Bhattacharyya 2.30 4.55% 2.10
Independent Director
f. Dr. Anant Jhingran* 1.98 9.05%** 1.80
Independent Director
g. Thomas Kendra 2.03 (3.57%) 1.85
Non-Independent,
Non-Executive Director
h. Prakash Telang 2.48 12.50% 2.26
Independent Director
i. Kiran Umrootkar 2.80 24.44% 2.56
Independent Director
j. Guy Eiferman 1.99 - 1.94
Independent Director@
k. Prof. Deepak Phatak 1.95 - 1.90
Independent Director@
l. Amit Are 2.92 12.70% 2.67 The increase in revenue was
Company Secretary 13.11% and decrease in Profit
After Tax was 7.92%
* Dr. Anant Jhingran appointed as an Independent Director on November 21, 2017.
@ Prof. Deepak Phatak and Mr. Guy Eiferman have been appointed as Additional Directors (independent member) on the Board
of Persistent Systems Limited w.e.f. April 24, 2018.
** Percentage increase in remuneration and ratio to median remuneration are based on the annualized remuneration for the
cases where remuneration is paid only for the part of the year.
^ Mr. Sunil Sapre was appointed as an Executive Director w.e.f. January 27, 2018. However, the above percentage is calculated
based on the remuneration of full financial year.
2. The median remuneration of employees of the Company during the financial year 2018-19 was ` 1,094,712.
3. In FY 2018-19, there was an increase of 16.61% in the median remuneration of employees.
4. As on March 31, 2019, there were 7,679 permanent employees who were on the payroll of the Company.
5. It is affirmed that the remuneration paid, is as per the Remuneration Policy for Directors, Key Managerial Personnel and
other employees.

106 • Annual Report 2018-19

 B. Details of employees posted in India who were employed through the financial year and received a remuneration of ` 10.2 Million or above p.a. OR the
employees posted in India who were employed for a part of the financial year and received remuneration of ` 0.85 Million p.m. under Section 197(12) of
the Companies Act, 2013 read with Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014:

Sr. Name Designation Salary and Value of Total Nature of Qualification Experience Date of Age in Last Employment % of Relation
No. Allowances Perquisites for Remuneration employment in Years commencement years before joining the Equity with any
(` Million) Stock options (` Million) (approx.) of employment (approx.) Company Shares Director
exercised held of the
(` Million) Company
Dr. Anand Chairman and
1. 21.79 - 21.79 Regular employee B. Tech. (Hons.), M.S. Ph.D. 31 19-Oct-1990 57 Hewlett-Packard 28.68 No
Deshpande Managing Director
Executive Director and
2. Sunil Sapre 11.59 0.88 12.47 Regular employee Chartered Accountant 30 29-Jun-2015 54 L&T Infotech 0.06 No
Chief Financial Officer
Telcordia Technologies,
3. Shubhangi Kelkar Vice President 3.78 9.50 13.28 Regular employee Ph. D. 25 03-Feb-2003 53 0.06 No
NJ, USA
Diploma (Centre for Development of Offshore Development
4. Shripad Agavekar Chief Architect 4.51 6.42 10.93 Regular employee 25 03-Nov-2003 49 0.04 No
Advanced Computing) Centers PVT
5. Sunil Morajkar* Senior Project Manager 0.98 0.00 0.98 Regular employee Bachelor of Engineering 19 01-Apr-2006 41 ControlNet India 0.00 No
6. Peeyoosh Pandey Senior Vice President 9.28 3.28 12.56 Regular employee Bachelor of Engineering (Electronics) 10 01-Oct-2009 43 Wipro Technologies 0.01 No
7. Prashant Gulalkari Vice President 4.94 9.00 13.94 Regular employee Master of Engineering 24 20-Aug-2010 56 Governation Pvt. Ltd 0.03 No
Masters in Business Administration Designtech
8. Abhijit Sane Vice President 3.40 10.87 14.28 Regular employee 20 21-Feb-2011 45 0.01 No
(Marketing & Finance) Systems Ltd.
Executive Vice Bachelor of Engineering
9. Atul Khadilkar 7.20 12.01 19.22 Regular employee 26 15-Apr-2011 55 Mphasis 0.04 No
President (Computer Technology)
Bachelor of Engineering Cradle Technologies,
10. Rahul Ekbote Chief Architect 3.65 9.06 12.71 Regular employee 19 2-May-2011 49 0.02 No
(Computer Science) India
Oracle Financial
Prashant Bachelor of Engineering System Solutions (As
11. Vice President 5.40 4.82 10.22 Regular employee 27 17-Apr-2012 52 0.02 No
Virgaonkar (Computer Technology) per resume available in
system)
12. Vivek Ruparel* Senior Delivery 0.89 3.55 4.43 Regular employee BSc. Statistics 24 18-Aug-2003 49 SAS Global Services 0.01 No
Manager
*Resigned from the Company during financial year 2018-19
The above table also gives details for top ten employees in terms of remuneration drawn and the particulars of employees as required under Section 197(12) of the
Act read with Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 who are deputed in India. The details of remaining
employees from such Top 10 employees who are not deputed in India are open for inspection at the Registered Office of the Company. Any shareholder interested in
obtaining a copy of the same may write to the Company Secretary.

 For and on behalf of the Board of Directors

Shaping the future of software driven business

 Dr. Anand Deshpande

 Chairman and Managing Director
Pune, June 11, 2019 DIN: 00005721

Report of the Directors • 107

 Annexure C to the Report of the Directors
Details of the options granted under various employee stock option schemes as on March 31, 2019:
Summary of all ESOP Schemes of the Company till date
Particulars ESOP I ESOA II ESOP III ESOA IV ESOA V ESOA VI ESOA VII ESOA VIII ESOA IX ESOA X ESOA XI ESOA XII Total
Options granted 4,560,500 753,200 2,533,300 6,958,250 1,890,525 1,216,250 1,784,975 42,000 1,374,462 3,062,272 492,000 67,300 24,735,034
Pricing formula Grant price Grant price Grant price Grant price Grant price Grant price Grant price Grant price Grant price Grant price of Options Grant price Grant price
of Options is of Options is of Options is of Options is of Options is of Options is of Options is of Options is of Options is is Market Price, or such of Options of Options
Book Value Book Value Book Value Book Value Book Value Book Value Book Value Book Value Book Value price including discount is ` 5 is ` 10
of the Equity of the Equity of the Equity of the Equity of the Equity of the Equity of the Equity of the Equity of the Equity not exceeding 10% on he
Share as per Share as per Share as per Share as per Share as per Share as per Share as per Share as per Share as per Market Price, as the Board /
the latest the latest the latest the latest the latest the latest the latest the latest the latest Committee may determine

108 • Annual Report 2018-19

quarterly quarterly quarterly quarterly quarterly quarterly quarterly quarterly quarterly in accordance with the
Audited audited Audited Audited audited audited audited audited audited regulations and guidelines
Balance Sheet Balance Sheet Balance Balance Balance Sheet Balance Balance Sheet Balance Sheet Balance prescribed by the Securities
at the time of at the time of Sheet at Sheet at at the time of Sheet at the at the time of at the time of Sheet at and Exchange Board of
grant grant the time of the time of grant time of grant grant grant the time of India or other appropriate
grant grant grant authority, from time to time
Total options vested 3,221,522 477,085 1,697,216 4,705,452 1,333,722 785,750 792,455 28,000 9,14,710 2,206,617 69,600 52,450 16,284,579
Options exercised from vested 3,221,504 477,082 1,538,591 4,205,679 1,270,929 785,750 757,459 28,000 772,590 2,050,967 69,600 52,450 15,230,601
options
Total number of Equity Shares 4,560,500 753,200 2,533,300 6,958,250 1,890,525 1,216,250 1,784,975 42,000 1,374,462 3,062,272 492,000 67,300
arising as a result of full
Shaping the future of software driven business

exercise of options granted

Options forfeited / lapsed / 1,325,681 276,113 816,006 2,230,256 536,708 430,500 992,520 14,000 459,752 658,063 - - 7,739,599
cancelled
Variations in terms of options NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL
Money realised by exercise of 34,189,006 8,186,853 37,749,846 141,091,289 30,364,382 20,069,546 24,401,486 1,349,760 41,665,788 256,456,726 NIL 524,500
options (purchase of Equity
Shares)
Options outstanding (in force) 18 3 158,625 499,773 62,793 - 34,996 - 142,120 155,650 _ - 1,053,978
Person wise details of options NIL
granted to
i. Directors # NIL NIL NIL NIL NIL NIL As per details NIL # # #
given below
ii. Key Managerial Personnel # # # # NIL NIL NIL NIL # # # #
iii. Any other employee who
received a grant in any one
year of options amounting
The details are available on the website of the company i.e. www.persistent.com/investors
to 5% or more of the
options granted during
that year
iv. Identified employees NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL
who are granted options,
during any one year equal
to exceeding 1% of the
issued capital (excluding
outstanding warrants and
conversions) of the Company
at the time of grant
Diluted EPS pursuant to issue ` 39.40 ` 39.40 ` 39.40 ` 39.40 ` 39.40 ` 39.40 ` 39.40 ` 39.40 ` 39.40 ` 39.40 ` 39.40 ` 39.40
of shares on exercise of options
calculated in accordance with
Ind AS 33

The Employee Stock Option Schemes of the Company are in compliance with the SEBI (Share Based Employee Benefits) Regulation, 2014
 Shaping the future of software driven business

# Details of the Options granted to the Directors / Key Managerial Personnel (including past) of your Company under our ESOP
Schemes (Excluding ESOA – VIII).

Sr. Name of Director / ESOP ESOA ESOP ESOA ESOA ESOA ESOA ESOA Total
No. Key Managerial I II III IV IX X XI XII
Person
1. Mr. Pradeep Bhargava NIL NIL NIL NIL NIL 14,000 NIL NIL 14,000
2. Mr. Sanjay Bhattacharyya NIL NIL NIL NIL NIL 14,000 NIL NIL 14,000
3. Dr. Anant Jhingran NIL NIL NIL NIL NIL 14,000 NIL NIL 14,000
4. Mr. Prakash Telang NIL NIL NIL NIL NIL 14,000 NIL NIL 14,000
5. Mr. Kiran Umrootkar NIL NIL NIL NIL NIL 14,000 NIL NIL 14,000
6. Dr. Dinesh Keskar NIL NIL NIL NIL NIL 14,000 NIL NIL 14,000
(Resigned)
7. Mr. Nitin Kulkarni NIL NIL NIL 185,000 NIL NIL NIL NIL 185,000
(Resigned)
8. Mr. Rohit Kamat 37,100 17,500 NIL 62,000 NIL NIL NIL NIL 116,600
(Retired)
9. Mr. Ranga Puranik NIL NIL NIL NIL NIL 112,000 NIL NIL 112,000
(Resigned)
10. Mr. Hari Haran NIL NIL NIL NIL 520,000 NIL NIL NIL 520,000
(Resigned)
11. Mr. Vivek Sadhale 15,750 1,750 6,300 57,200 NIL NIL NIL NIL 81,000
(Resigned)
12. Mr. Amit Atre NIL NIL NIL NIL NIL NIL NIL 25 25
13 Mr. Mritunjay Singh NIL NIL NIL NIL NIL 80,000 9,600* NIL 89,000
(Resigned)
14 Mr. Sunil Sapre NIL NIL NIL NIL NIL NIL 3,200* NIL 3,200

*Based on the Company performance only 9,600 and 3,200 options, respectively, were eligible for vesting (against original
grant of 48,000 and 16,000 options, respectively) and the same were vested during the previous year. The balance options
were lapsed.

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Report of the Directors • 109

 Shaping the future of software driven business

Annexure D to the Report of the Directors

Form No. AOC-2
(Pursuant to clause (h) of sub-section (3) of section 134 of the Companies Act, 2013 (the ‘Act’) and Rule 8(2) of the Companies
(Accounts) Rules, 2014)
Form for disclosure of particulars of contracts or arrangements entered into by the Company with related parties referred to
in sub-section (1) of section 188 of the Companies Act, 2013 including certain arm’s length transactions under third proviso
thereto:
1. Details of contracts or arrangements or transactions not at arm’s length basis:
Persistent Systems Limited (the Company) has not entered into any contract/ arrangement/transaction with its related parties
which is not in ordinary course of business or at arm’s length during financial year 2018-19.
a. Name(s) of the related party and nature of relationship: Not Applicable
b. Nature of contracts/arrangements/transactions: Not Applicable
c. Duration of the contracts/arrangements/transactions: Not Applicable
d. Salient terms of the contracts or arrangements or transactions including the value, if any: Not Applicable
e. Justification for entering into such contracts or arrangements or transactions: Not Applicable
f. Date(s) of approval by the Board: Not Applicable
g. Amount paid as advances, if any: Not Applicable
h. Date on which the special resolution was passed in general meeting as required under first proviso to Section 188: Not
Applicable
2. Details of material contracts or arrangement or transactions at arm’s length basis:
There were certain transactions entered into by the Company with its foreign subsidiaries and other parties who are related
within the meaning of Indian Accounting Standard (Ind AS) 24 and Section 188 of the Act. Attention of Members is drawn to
the disclosure of transactions with such related parties set out in Note No. 34 of the Standalone Financial Statements, forming
part of this Annual Report.

On behalf of the Board of Directors

Dr. Anand Deshpande

Chairman and Managing Director
Pune, June 11, 2019 DIN: 00005721

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110 • Annual Report 2018-19

 Shaping the future of software driven business

Annexure E to the Report of the Directors

Form MGT–9
Extract of Annual Return
Pursuant to the provisions of the Section 92(3) of the Companies Act, 2013 read with Rule 12(1) of the Companies (Management
and Administration) Rules, 2014, the extract of Annual Return of the Company for the financial year ended on March 31, 2019
is as follows:
I. Registration and other details

Sr. No. Particulars Details

i. CIN L72300PN1990PLC056696
ii. Registration Date May 30, 1990
iii. Name of the Company Persistent Systems Limited
iv. Category of the Company Company limited by shares
v. Sub-category of the Company Indian Non-Government Company
vi. Address of the Registered Office Bhageerath, 402 Senapati Bapat Road, Pune 411 016
vii. Contact details Tel. No.: +91 (20) 6703 0000; Fax: +91 (20) 6703 0009;
E-mail: [email protected]; Website: www.persistent.com
viii. Whether listed company Yes
ix. Name and Address of Registrar and Transfer Agent M/s. Link Intime India Private Limited
(Unit: Persistent Systems Limited)
Block No. 202, Second Floor, Akshay Complex,
Off Dhole Patil Road, Pune 411 001
x. Contact details of Registrar and Transfer Agent Tel. No.: +91 (20) 2616 0084 / 2616 1629 / 2616 3503
E-mail: [email protected]

II. Principal Business Activity of the Company

Sr. No. Name and Description of main NIC Code of the % to total turnover
products / services Product / Service of the Company
1. Computer programming, 62011, 62012, 62013, 62020, 100
consultancy and related activities 62091, 62092 and 62099

III. Particulars of Subsidiary and Associate Companies

Sr. No. Name and Place of Incorporation CIN / GLN Holding / % of shares Applicable
of the Company Subsidiary / held Section
Associate
1. Persistent Systems Inc., USA NA Subsidiary 100 2(87)(ii)
2. Persistent Systems Pte. Ltd., Singapore NA Subsidiary 100 2(87)(ii)
(Co. Reg. No. 200706736G)
3. Persistent Systems France S.A.S., NA Subsidiary 100 2(87)(ii)
France
4. Persistent Systems Malaysia Sdn. Bhd., NA Subsidiary 100 2(87)(ii)
Malaysia
5. Persistent Systems Germany GmbH, NA Subsidiary 100 2(87)(ii)
Germany
6. Persistent Telecom Solutions Inc., USA NA Step-down 100 2(87)(ii)
Subsidiary
7. Aepona Holdings Limited, Ireland NA Step-down 100 2(87)(ii)
(Under Liquidation) Subsidiary
8. Aepona Group Limited, Ireland NA Step-down 100 2(87)(ii)
Subsidiary
9. Valista Limited, Ireland NA Step-down 100 2(87)(ii)
(Under Liquidation) Subsidiary

Report of the Directors • 111

 Shaping the future of software driven business

Sr. No. Name and Address of the Company CIN / GLN Holding / % of shares Applicable
Subsidiary / held Section
Associate
10. Aepona Limited, United Kingdom NA Step-down 100 2(87)(ii)
Subsidiary
11. Persistent Systems Lanka (Private) NA Step-down 100 2(87)(ii)
Limited, Sri Lanka* Subsidiary
12. Persistent Systems Israel Ltd., Israel NA Step-down 100 2(87)(ii)
Subsidiary
13. Persistent Systems Mexico S.A. de C.V., NA Step-down 100 2(87)(ii)
Mexico Subsidiary
14. PARX Werks AG, Switzerland NA Step-down 100 2(87)(ii)
Subsidiary
15. PARX Consulting GmbH, Germany NA Step-down 100 2(87)(ii)
Subsidiary
16. Herald Technologies Inc., USA NA Step-down 100 2(87)(ii)
Subsidiary
17. Klisma e-Services Private Limited, India U72900PN2012PTC142729 Associate 50 2(6)
* Formerly known as Aepona Software (Private) Limited.

IV. Shareholding Pattern (Equity Share Capital Break-up as percentage of Total Equity)
i. Category-wise Shareholding

Category of Shareholders No. of Shares held at the beginning of the year No. of Shares held at the end of the year % Change
Demat Physical Total % of Total Demat Physical Total % of Total during the
Shares Shares year
A. Promoters
1. Indian
a. Individual / HUF 22,838,424 - 22,838,424 28.55 22,846,340 - 22,846,340 28.68 0.13
b. Central Govt. - - - - - - - - -
c. State Govt.(s) - - - - - - - - -
d. Bodies Corporate - - - - - - - - -
e. Banks / FIs - - - - - - - - -
f. Any other:
Relatives of Promoters 1,556,005 - 1,556,005 1.95 1,530,825 - 1,530,825 1.93 (0.02)
Sub-total (A)(1) 24,394,429 - 24,394,429 30.49 24,377,165 24,377,165 30.61 0.11
2. Foreign
a. NRI Individuals - - - - - - - - -
b. Other Individuals - - - - - - - - -
c. Bodies Corporate - - - - - - - - -
d. Banks / FIs - - - - - - - - -
e. Any other - - - - - - - - -
Sub-total (A)(2) - - - - - - - - -
Total Shareholding of 24,394,429 - 24,394,429 30.49 24,377,165 24,377,165 30.61 0.11
Promoters (A) = (A)(1)
+ (A)(2)

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Category of Shareholders No. of Shares held at the beginning of the year No. of Shares held at the end of the year % Change
Demat Physical Total % of Total Demat Physical Total % of Total during the
Shares Shares year
B. Public Shareholding
1. Institutions
a. Mutual Funds / UTI 9,800,479 - 9,800,479 12.25 14,560,052 - 14,560,052 18.28 6.03
b. Banks / FIs 1,348,159 - 1,348,159 1.69 1,253,860 - 1,253,860 1.57 (0.12)
c. Central Govt. 297 - 297 0 - - 0 0.00
d. State Govt.(s) - - - - - - - - -
e. Venture Capital Funds - - - - - - - - -
f. Insurance Companies - - - - - - - - -
g. FIIs / FPIs 21,178,899 - 21,178,899 26.47 16,647,012 - 16,647,012 20.91 (5.56)
h. Foreign Venture - - - -
Capital Investors
i. Others
Foreign Companies - 366,862 366,862 0.46 - 366,862 366,862 0.46 0.00
Alternate 159,460 - 159,460 0.20 1,621,901 - 1,621,901 2.04 1.84
Investment Funds
Sub-total (B)(1) 32,487,294 366,862 32,487,294 41.07 34,082,825 366,862 34,449,687 43.26 2.19
2. Non-institutions
a. Bodies Corp. (Indian 4,847,651 - 4,847,651 6.06 3,128,232 - 3,175,838 3.99 (2.07)
and Overseas)
b. Individuals
i) Individual shareholders 8,074,233 271 8,074,504 10.09 8,497,278 71 8,497,349 10.67 0.58
holding nominal share
capital upto ` 2 Lakh
ii) Individual shareholders 5,634,899 - 5,634,899 7.04 5,463,780 - 5,463,780 6.86 (0.18)
holding nominal share
capital in excess of
` 2 Lakh
c. Others
i) Clearing Member 166,689 - 166,689 0.21 60,769 - 60,769 0.08 (0.13)
ii) Foreign National 13,800 - 13,800 0.02 17,300 - 17,300 0.02 0
iii) NRI 1,015,201 - 1,015,201 1.27 1,140,301 - 1,140,301 1.43 0.16
iv) Directors / Relatives 53,400 - 53,400 0.07 56,200 - 56,200 0.07 0
v) Trust 2,701,637 - 2,701,637 3.38 2,140,527 - 2,140,527 2.69 (0.69)
vi) Hindu Undivided 243,634 - 243,634 0.30 2,51,727 2,51,727 0.32 (0.02)
Family
NBFC - - - - 47,606 - 47,606 0.06 0.06
IEPF - - - - 506 - 506 0.00 0.00
Sub-total (B)(2) 22,751,144 271 20,422,136 28.44 20,804,226 71 20,804,297 26.13 (2.31)
Total Public Shareholding 55,238,438 367,133 55,238,709 69.51 54,887,051 366,933 55,253,984 69.39 (0.12)
(B) = (B)(1) + (B)(2)
C. Shares held by -- -- -- -- -- -- -- -- --
Custodian for GDRs
/ ADRs
D. Grand Total (A+B+C) 79,632,867 367,133 80,000,000 100 79,264,216 366,933 79,631,149 100 -
Notes:
a. Percentage calculated on the paid-up share capital (80,000,000 equity shares) at the beginning of the year.
b. Percentage calculated on the paid-up share capital (79,631,149 equity shares) at the end of the year.
c. Due to buyback, the total paid up share capital has decreased, and the shareholding percentage has increased accordingly.
This change has not considered while calculating this percentage change during the year.

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ii. Shareholding by Promoters and Promoter Group

Sr. Shareholder’s Name Shareholding at the beginning of the year Shareholding at the end of the year % change in
No. No. of % of total % of shares No. of % of total % of shares shareholding
Shares shares pledged / Shares shares pledged / during the
of the encumbered of the encumbered year
Company to total Company to total
shares shares
Promoter:
1. Dr. Anand Suresh Deshpande 22,815,340 28.52 0.00 22,841,340 28.68 0.00 0.16
2. Suresh Purushottam 23,084 0.03 0.00 5,000 0.01 0.00 0.02
Deshpande
Promoter Group:
3. Sulabha Suresh Deshpande 566,000 0.71 0.00 566,000 0.71 0.00 0.00
4. Chitra Hemadri Buzruk 469,400 0.59 0.00 469,400 0.59 0.00 0.00
5. Dr. Mukund Suresh Deshpande 400,025 0.50 0.00 374,825 0.47 0.00 (0.03)
6. Sonali Anand Deshpande 112,000 0.14 0.00 112,000 0.14 0.00 0.00
7. Hemadri Narayan Buzruk 7,800 0.01 0.00 7,820 0.01 0.00 0.00
8. Padmakar Govind Khare 780 0.00 0.00 780 0.00 0.00 0.00
Notes:
a. Percentage calculated on the paid-up share capital (80,000,000 equity shares) at the beginning of the year.
b. Percentage calculated on the paid-up share capital (79,631,149 equity shares) at the end of the year.
c. Due to buyback, the total paid up share capital has decreased, and the shareholding percentage has increased accordingly.
This change has not considered while calculating this percentage change during the year.
iii. Change in Promoter’s Shareholding

Sr. Name of Shareholder Shareholding at the Date wise changes in Shareholding at the
No. beginning of the year the holding end of the year
No. of % of total Date No. of Nature of No. of % of total
Shares shares Shares Transaction Shares shares
of the of the
Company Company
Promoter:
1. Dr. Anand Suresh Deshpande* 22,815,340 28.52 24 Oct 2018 18,000 Buy 22,841,340 28.68
25 Oct 2018 7,000 Buy
07 Nov 2018 1,000 Buy
2. Suresh Purushottam 23,084 0.03 09 May 2018 18,084 Sell 5,000 0.01
Deshpande*
Promoter Group:
3. Sulabha Suresh Deshpande* 566,000 0.71 No Change 566,000 0.71
4. Sonali Anand Deshpande* 112,000 0.14 No Change 112,000 0.14
5. Chitra Hemadri Buzruk # 469,400 0.59 No Change 469,400 0.59
6. Hemadri Narayan Buzruk* 7,800 0.01 No Change 7,820 0.01
7. Padmakar Govind Khare* 780 0.00 No Change 780 0.00
8. Dr. Mukund Suresh Deshpande 400,025 0.50 15 Jun 2018 10,000 Sell 374,825 0.47
20 Jun 2018 2,299 Sell
22 Jun 2018 17,701 Sell
12 Jun 2018 4,800 Buy (ESOP)
*Jointly held with spouse
#Held Singly/Jointly
Notes:
a. Percentage calculated on the paid-up share capital (80,000,000 equity shares) at the beginning of the year.
b. Percentage calculated on the paid-up share capital (79,631,149 equity shares) at the end of the year.
c. Due to buyback, the total paid up share capital has decreased, and the shareholding percentage has increased accordingly.
This change has not considered while calculating this percentage change during the year.

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iv. Shareholding pattern of top ten shareholders (other than Directors, Promoters and Holders of GDRs and ADRs)

Sr. Shareholding at the Transactions during the Cumulative Shareholding

No. beginning of the year at the end of the
year - 2018 year - 2019
Name & Type of No. of % of Total Date of No. of No. of % of Total
Transaction Shares Shares of the Transaction Shares Shares Shares of the
Held Company Held Company
1 HDFC Trustee Company 2,569,600 3.2269
LTD. A/C HDFC Capital
Builder Value Fund
Transfer 06 Apr 2018 250,000 2,819,600 3.5408
Transfer 13 Apr 2018 278,713 3,098,313 3.8908
Transfer 20 Apr 2018 70,000 3,168,313 3.9787
Transfer 27 Apr 2018 2,19,000 3,387,313 4.2538
Transfer 04 May 2018 89,200 3,476,513 4.3658
Transfer 22 Jun 2018 88,000 3,564,513 4.4763
Transfer 24 Aug 2018 (78,100) 3,486,413 4.3782
Transfer 31 Aug 2018 (68,600) 3,417,813 4.2921
Transfer 07 Sep 2018 (13,000) 3,404,813 4.2757
Transfer 14 Sep 2018 (58,000) 3,346,813 4.2029
Transfer 21 Sep 2018 (7,355) 3,339,458 4.1937
Transfer 29 Sep 2018 (13,000) 3,326,458 4.1773
Transfer 05 Oct 2018 (3,000) 3,323,458 4.1736
Transfer 30 Nov 2018 62,100 3,385,558 4.2515
Transfer 07 Dec 2018 (2,000) 3,383,558 4.2490
Transfer 28 Dec 2018 143,700 3,527,258 4.4295
Transfer 18 Jan 2019 200,000 3,727,258 4.6807
At the end of the year 3,727,258 4.6807
2 L&T Mutual Fund 10,31,950 1.2959
Trustee Limited - L&T
Emerging Business
Fund
Transfer 27 Apr 2018 156,658 1,188,608 1.4926
Transfer 11 May 2018 (4,200) 1,184,408 1.4874
Transfer 01 Jun 2018 24,700 1,209,108 1.5184
Transfer 13 Jul 2018 25,000 1,234,108 1.5498
Transfer 20 Jul 2018 600,000 1834108 2.3033
Transfer 03 Aug 2018 140,000 1,974,108 2.4791
Transfer 10 Aug 2018 519,200 2,493,308 3.1311
Transfer 31 Aug 2018 29,400 2,522,708 3.1680
Transfer 07 Sep 2018 13,300 2,536,008 3.1847
Transfer 26 Oct 2018 50,000 2,586,008 3.2475
Transfer 23 Nov 2018 56,007 2,642,015 3.3178
Transfer 30 Nov 2018 579,402 3,221,417 4.0454
Transfer 07 Dec 2018 24,313 3,245,730 4.0760
Transfer 14 Dec 2018 2,599 3,248,329 4.0792
Transfer 28 Dec 2018 50,479 3,298,808 4.1426
Transfer 04 Jan 2019 3,588 3,302,396 4.1471
Transfer 11 Jan 2019 37,435 3,339,831 4.1941
Transfer 01 Feb 2019 47,907 3,387,738 4.2543
Transfer 29 Mar 2019 (550) 3,387,188 4.2536
At the end of the year 3,387,188 4.2536

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Sr. Shareholding at the Transactions during the Cumulative Shareholding

No. beginning of the year at the end of the
year - 2018 year - 2019
Name & Type of No. of % of Total Date of No. of No. of % of Total
Transaction Shares Shares of the Transaction Shares Shares Shares of the
Held Company Held Company
3 Government Pension 2,324,258 2.9188
Fund Global
At the end of the year 2,324,258 2.9188
4 PSPL ESOP 2,696,141 3.3858
Management Trust*
Transfer 20 Apr 2018 (13,150) 2,682,991 3.3693
Transfer 04 May 2018 (18,000) 2,664,991 3.3467
Transfer 11 May 2018 (50,105) 2,614,886 3.2837
Transfer 18 May 2018 (18,192) 2,596,694 3.2609
Transfer 25 May 2018 (26,700) 2,569,994 3.2274
Transfer 01 Jun 2018 (27,300) 2,542,694 3.1931
Transfer 15 Jun 2018 (8,300) 2,534,394 3.1827
Transfer 22 Jun 2018 (5,178) 2,529,216 3.1762
Transfer 30 Jun 2018 (1,970) 2,527,246 3.1737
Transfer 06 Jul 2018 (10,000) 2,517,246 3.1611
Transfer 13 Jul 2018 (15,100) 2,502,146 3.1422
Transfer 20 Jul 2018 (18,903) 2,483,243 3.1184
Transfer 03 Aug 2018 (13,800) 2,469,443 3.1011
Transfer 17 Aug 2018 (9,151) 2,460,292 3.0896
Transfer 24 Aug 2018 (200) 2,460,092 3.0894
Transfer 07 Sep 2018 (4,000) 2,456,092 3.0843
Transfer 21 Sep 2018 (2,674) 2,453,418 3.0810
Transfer 29 Sep 2018 (18,310) 2,435,108 3.0580
Transfer 05 Oct 2018 (1,301) 2,433,807 3.0564
Transfer 12 Oct 2018 (19,597) 2,414,210 3.0317
Transfer 26 Oct 2018 (10,775) 2,403,435 3.0182
Transfer 02 Nov 2018 (16,022) 2,387,413 2.9981
Transfer 09 Nov 2018 (78,535) 2,308,878 2.8995
Transfer 23 Nov 2018 (29,486) 2,279,392 2.8624
Transfer 30 Nov 2018 (23,854) 2,255,538 2.8325
Transfer 07 Dec 2018 (14,606) 2,240,932 2.8141
Transfer 21 Dec 2018 (18,797) 2,222,135 2.7905
Transfer 28 Dec 2018 (2700) 2,219,435 2.7871
Transfer 31 Dec 2018 (7540) 2,211,895 2.7777
Transfer 11 Jan 2019 (33285) 2,178,610 2.7359
Transfer 18 Jan 2019 (300) 2,178,310 2.7355
Transfer 01 Feb 2019 (24729) 2,153,581 2.7044
Transfer 15 Feb 2019 (10150) 2,143,431 2.6917
Transfer 01 Mar 2019 (2200) 2,141,231 2.6889
Transfer 15 Mar 2019 (2122) 2,139,109 2.6863
Transfer 29 Mar 2019 (3700) 2,135,409 2.6816
At the end of the year 2,135,409 2.6816

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Sr. Shareholding at the Transactions during the Cumulative Shareholding

No. beginning of the year at the end of the
year - 2018 year - 2019
Name & Type of No. of % of Total Date of No. of No. of % of Total
Transaction Shares Shares of the Transaction Shares Shares Shares of the
Held Company Held Company
5 Tata Mutual Fund - 474,300 0.5956
Tata Equity P/E Fund
Transfer 06 Apr 2018 50,000 524,300 0.6584
Transfer 20 Apr 2018 217,500 741,800 0.9315
Transfer 27 Apr 2018 231,200 973,000 1.2219
Transfer 04 May 2018 19,000 992,000 1.2457
Transfer 11 May 2018 47,000 1,039,000 1.3048
Transfer 18 May 2018 16,000 1,055,000 1.3249
Transfer 25 May 2018 14,000 1,069,000 1.3424
Transfer 01 Jun 2018 7,200 1,076,200 1.3515
Transfer 08 Jun 2018 70,000 1,146,200 1.4394
Transfer 03 Aug 2018 25,000 1,171,200 1.4708
Transfer 12 Oct 2018 20,000 1,191,200 1.4959
Transfer 23 Nov 2018 21,100 1,212,300 1.5224
Transfer 30 Nov 2018 20,000 1,232,300 1.5475
Transfer 07 Dec 2018 150,000 1,382,300 1.7359
Transfer 14 Dec 2018 60,000 1,442,300 1.8112
Transfer 11 Jan 2019 60,000 1,502,300 1.8866
Transfer 01 Feb 2019 100,000 1,602,300 2.0122
At the end of the year 1,602,300 2.0122
6 LETKO BROSSEAU 1,000,000 1.2558
Emerging Markets
Equity Fund
Transfer 17 Aug 2018 (50,000) 950,000 1.1930
Transfer 24 Aug 2018 (75,000) 875,000 1.0988
Transfer 26 Oct 2018 188 875,188 1.0991
Transfer 18 Jan 2019 466,000 1,341,188 1.6843
Transfer 25 Jan 2019 30,000 1,371,188 1.7219
Transfer 01 Feb 2019 141,582 1,512,770 1.8997
Transfer 01 Mar 2019 441 1,513,211 1.9003
At the end of the year 1,513,211 1.9003
7 PPFAS Mutual Fund - 705,517 0.8860
Parag Parikh Long Term
Equity Fund
Transfer 12 Oct 2018 68,160 773,677 0.9716
Transfer 19 Oct 2018 24,602 798,279 1.0025
Transfer 26 Oct 2018 230,000 1,028,279 1.2913
Transfer 07 Dec 2018 34,157 1,062,436 1.3342
Transfer 11 Jan 2019 190,000 1,252,436 1.5728
Transfer 18 Jan 2019 50,011 1,302,447 1.6356
Transfer 25 Jan 2019 51,824 1,354,271 1.7007
Transfer 01 Mar 2019 58,321 1,412,592 1.7739
At the end of the year 1,412,592 1.7739

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Sr. Shareholding at the Transactions during the Cumulative Shareholding

No. beginning of the year at the end of the
year - 2018 year - 2019
Name & Type of No. of % of Total Date of No. of No. of % of Total
Transaction Shares Shares of the Transaction Shares Shares Shares of the
Held Company Held Company
8 ICICI Prudential Value 1,448,227 1.8187
Discovery Fund
Transfer 27 Apr 2018 (2,2131) 1,426,096 1.7909
Transfer 04 May 2018 (18,860) 1,407,236 1.7672
Transfer 11 May 2018 81 1,407,317 1.7673
Transfer 18 May 2018 (35,603) 1,371,714 1.7226
Transfer 25 May 2018 (25) 1,371,689 1.7226
Transfer 22 Jun 2018 (1) 1,371,688 1.7226
Transfer 06 Jul 2018 (24,085) 1,347,603 1.6923
Transfer 20 Jul 2018 (52,174) 1,295,429 1.6268
Transfer 27 Jul 2018 (25) 1,295,404 1.6268
Transfer 29 Sep 2018 2 1,295,406 1.6268
Transfer 26 Oct 2018 167,949 1,463,355 1.8377
Transfer 02 Nov 2018 16,436 1,479,791 1.8583
Transfer 09 Nov 2018 67,210 1,547,001 1.9427
Transfer 16 Nov 2018 179,188 1,726,189 2.1677
Transfer 30 Nov 2018 8,770 1,734,959 2.1787
Transfer 14 Dec 2018 (48,778) 1,686,181 2.1175
Transfer 31 Dec 2018 (36,691) 1,649,490 2.0714
Transfer 01 Feb 2019 (52,367) 1,597,123 2.0057
Transfer 08 Feb 2019 (250,000) 1,347,123 1.6917
At the end of the year 1,347,123 1.6917
9 Shridhar Bhalchandra 1,365,627 1.7149
Shukla
Transfer 27 Apr 2018 (16,000) 1,349,627 1.6948
Transfer 04 May 2018 (8,000) 1,341,627 1.6848
Transfer 18 May 2018 (8,000) 1,333,627 1.6748
Transfer 25 May 2018 (4,458) 1,329,169 1.6692
Transfer 01 Jun 2018 (8,000) 1,321,169 1.6591
Transfer 15 Jun 2018 (8,000) 1,313,169 1.6491
Transfer 30 Jun 2018 (8,000) 1,305,169 1.6390
Transfer 13 Jul 2018 (18,123) 1,287,046 1.6163
Transfer 27 Jul 2018 (12,419) 1,274,627 1.6007
Transfer 10 Aug 2018 (8,000) 1,266,627 1.5906
Transfer 17 Aug 2018 (16,000) 1,250,627 1.5705
Transfer 24 Aug 2018 (8,000) 1,242,627 1.5605
Transfer 07 Sep 2018 (8,000) 1,234,627 1.5504
Transfer 14 Sep 2018 (12,000) 1,222,627 1.5354
At the end of the year 1,222,627 1.5354
10 Ashutosh Vinayak Joshi 1,117,946 1.4039 1,117,946 1.4039
At the end of the year 1,117,946 1.4039
*Shares held in the name of Trustees of PSPL ESOP Management Trust
Notes:
a. Percentage calculated on the paid-up share capital (80,000,000 equity shares) at the beginning of the year.
b. Percentage calculated on the paid-up share capital (79,631,149 equity shares) at the end of the year.
c. Due to buyback, the total paid up share capital has decreased, and the shareholding percentage has increased accordingly.
This change has not considered while calculating this percentage change during the year.
d. The details of holding has been clubbed based on PAN.

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v. Shareholding of Directors and Key Managerial Personnel

Sr. Name of Shareholder Shareholding at the No. of Shares Shareholding at the

No. beginning of the year end of the year
No. of % of total Increase Decrease No. of % of total
Shares shares Shares shares of the
of the Company
Company
1. Ms. Roshini Bakshi - - - - - -
2. Mr. Pradeep Bhargava* 13,600 0.02 No Change 13,600 0.02
3. Mr. Sanjay Bhattacharyya* 14,000 0.02 No Change 14,000 0.02
4. Mr. Guy Eiferman - - - - - -
5. Dr. Anant Jhingran - - - - - -
6. Mr. Thomas Kendra - - - - - -
7. Prof. Deepak Phatak - - - - - -
8. Mr. Sunil Sapre 1,800 0.01 2,800 - 4,600 0.06
9. Mr. Prakash Telang* 18,000 0.02 No Change 18,000 0.02
10. Mr. Kiran Umrootkar* 6,000 0.01 No Change 6,000 0.01
11. Mr. Amit Atre 55 0.00006875 No Change 55 0.000069068

*Jointly held with spouse.

Notes:
a. Percentage calculated on the paid-up share capital (80,000,000 equity shares) at the beginning of the year.
b. Percentage calculated on the paid-up share capital (79,631,149 equity shares) at the end of the year.
c. Due to buyback, the total paid up share capital has decreased, and the shareholding percentage has increased accordingly.
This change has not considered while calculating this percentage change during the year.
V. Indebtedness
Indebtedness of the Company including interest outstanding / accrued but not due for payment
(` in Million)

Secured Unsecured Deposits Total

Loans Loans Indebtedness
excluding
deposits
Indebtedness at the beginning of the financial year
a. Principal Amount - 21.13 - 21.13
b. Interest due but not paid - - - -
c. Interest accrued but not due - 0.78 - 0.78
Total (a+b+c) - 21.91 - 21.91
Change in indebtedness during the financial year
— Addition - 0.51 - 0.51
— Reduction - (5.70) - (5.70)
Net Change - (5.19) - (5.19)
Indebtedness at the end of the financial year
a. Principal Amount - 16.55 - 16.55
b. Interest due but not paid - - - -
c. Interest accrued but not due - 0.17 - 0.17
Total (a+b+c) - 16.72 - 16.72

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VI. Remuneration of Directors and Key Managerial Personnel

A. Remuneration to Managing Director, Whole-time Director and/or Manager:
(` in Million)

Sr. Particulars of Remuneration Name of MD / WTD / Manager Total Amount

No.
Dr. Anand Mr. Sunil
Deshpande Sapre
1. Gross Salary
(a) Salary as per provisions contained in section 17(1) of the 11.04 6.41 17.45
Income Tax Act, 1961
(b) Value of perquisites u/s 17(2) of the Income Tax Act, 1961 0.08 Nil 0.08

(c) Profits in lieu of salary u/s 17(3) of the Income Tax Act, Nil Nil Nil
1961
2. Stock Option
(a) Granted during the year (Nos.) Nil Nil Nil
(b) Exercised during the year (Nos.) Nil 1,600 0.88
3. Sweat Equity Nil Nil Nil
4. Commission
— As % of profit 9.10 4.35 13.45
— Others, specify Nil Nil Nil
5. Others, please specify Company’s contribution to PF, 1.57 1.71 2.40
Superannuation Fund and National Pension Fund

Total (A) 21.79 12.47 34.26

Overall Ceiling as per the Act: ` 443.60 Million (being 10% of net profit of the Company calculated as per Section 198 of the
Companies Act, 2013)
B. Remuneration to other Directors:
(` in Million)

Sr. Particulars of Names of Director Total

No. Remuneration Amount
Ms. Mr. Mr. Sanjay Dr. Anant Mr. Mr. Mr. Kiran Mr. Guy Prof.
Roshini Pradeep Bhattacharyya Jhingran Thomas Prakash Umrootkar Eiferman Deepak
Bakshi Bhargava Kendra Telang Phatak
1. Independent
Directors
— Fees for 0.50 1.08 0.60 0.28 - 0.78 1.10 0.40 0.35 5.07
attending Board
/ Committee
Meetings
— Commission 1.70 1.70 1.70 1.70 - 1.70 1.70 1.60 1.60 13.40
— Others, please - - - - - - - - - -
specify
Total (1) 2.20 2.78 2.30 1.98 - 2.48 2.80 1.99 1.95 18.47

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Sr. Particulars of Names of Director Total

No. Remuneration Amount
Ms. Mr. Mr. Sanjay Dr. Anant Mr. Mr. Mr. Kiran Mr. Guy Prof.
Roshini Pradeep Bhattacharyya Jhingran Thomas Prakash Umrootkar Eiferman Deepak
Bakshi Bhargava Kendra Telang Phatak
2. Other Non-executive
Directors
— Fees for - - - - 0.33 - - - - 0.33
attending Board
/ Committee
Meetings
— Commission - - - - 1.70 - - - - 1.70
— Others, please - - - - - - - - - -
specify
Total (2) - - - - 2.03 - - 2.03
Total (B) = (1)+(2) 2.20 2.78 2.30 1.98 2.03 2.48 2.80 1.99 1.95 20.50
Total Managerial Remuneration (A)+(B) 54.76

Overall Ceiling as per the Act : ` 487.96 Million (being 11% of net profit of the Company calculated as per Section 198 of the
Companies Act, 2013)

C. Remuneration to Key Managerial Personnel other than MD / WTD / Manager

(` in Million)

Sr. Particulars of Remuneration Mr. Amit Atre

No. Company Secretary
1. Gross Salary
(a) Salary as per provisions contained in section 17(1) of the Income Tax Act, 1961 1.84
(b) Value of perquisites u/s 17(2) of the Income Tax Act, 1961 -
(c) Profits in lieu of salary u/s 17(3) of the Income Tax Act, 1961 -
2. Stock Options Nil
(a) Granted during the year (Nos.) -
(b) Exercised during the year (Nos.) -
3. Sweat Equity -
4. Commission
— As % of profit -
— Others, specify Performance Linked Bonus 0.93
5. Others, please specify Company’s contribution to PF, Superannuation fund and National
0.15
Pension Fund
Total 2.92

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VII. Penalties / Punishment / Compounding of offences

Type Section of the Brief Details of Authority Appeal made,

Companies Act Description Penalty / (RD / NCLT / if any (give
Punishment / Court) details)
Compounding
fee imposed
(`)
A. Company
Penalty Nil Nil Nil Nil Nil
Punishment Nil Nil Nil Nil Nil
Compounding Nil Nil Nil Nil Nil
B. Directors
Penalty Nil Nil Nil Nil Nil
Punishment Nil Nil Nil Nil Nil
Compounding Nil Nil Nil Nil Nil
C. Other officers in default
Penalty Nil Nil Nil Nil Nil
Punishment Nil Nil Nil Nil Nil
Compounding Nil Nil Nil Nil Nil

For and on behalf of the Board of Directors

Dr. Anand Deshpande

Chairman and Managing Director
Pune, June 11, 2019 DIN: 00005721

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 Shaping the future of software driven business

Annexure F to the Report of the Directors

Details of the other ISO certifications for technical processes and systems:

No Certification Name Scope Locations

1 ISO 9001:2015: Software design, development, testing, maintenance, Pune(Aryabhata-Pingala,
Quality Management support services and business enabling functions Bhageerath, Hinjewadi,
System for product engineering,platforms integration Blueridge), Nagpur, Bengaluru,
& solution, SMAC (social, mobility, analytics and Hyderabad, Goa, Malaysia,
cloud) services and accelerite business unit for France
software products
2 ISO 13485:2016: Software Product Design, Development, Testing, Pune (Aryabhata-Pingala,
Quality Management System Enhancement and Support for Medical Device Blueridge)
for Medical Devices Software
3 ISO/IEC 27001:2013: Management of information security pertaining Pune (Aryabhata-Pingala,
Information Security to software design, development, testing, Bhageerath, Hinjewadi,
Management System maintenance, support services and business Blueridge, Panini)
enabling functions for product engineering, Nagpur (Gargi-Maitreyi,
platforms integration and solution, SMAC(social, InfoTech Tower),
mobility, analytics and cloud) services and Hyderabad, Goa, Bengaluru,
accelerate business unit for software products as France, Malaysia, Sri Lanka,
per statement of applicability version 6.0 dated Dublin (Ohio, USA),
15.12.2017 Jalisco (Mexico)
4 ISO 14001:2015: Software Design and Development Pune (Aryabhata-Pingala,
Environment Bhageerath, Hinjewadi,
Management System Blueridge) Nagpur, Bengaluru,
Hyderabad, Goa
5 ISO 45001:2018: Software Design and Development Pune (Aryabhata-Pingala,
Occupational Health and Bhageerath, Hinjewadi,
Safety Management System Blueridge), Nagpur, Bengaluru,
Hyderabad, Goa
6 ISO 14064-1:2006: Specification with guidance at the organization Pune (Aryabhata-Pingala,
Quantification and Reporting level for Quantification and Reporting of Bhageerath, Hinjewadi,
of Greenhouse Gas Emissions Greenhouse Gas Emissions and Removal Blueridge), Nagpur, Bengaluru,
and Removal Hyderabad, Goa

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 Shaping the future of software driven business

Annexure G to the Report of the Directors

Annual Report on Corporate Social Responsibility (CSR) activities of the Company for the financial year 2018-19
1. A brief outline of the Company’s CSR policy, including overview of projects or programs proposed to be undertaken
and a reference to the web-link to the CSR policy and projects or programs.
Sustainability, consciousness, actions on environment and climate change awareness and contributions to reducing social
imbalance are the corner stones of your Company’s Corporate Social Responsibility.
Your Company conducts business in a sustainable and socially responsible manner. This principle has been an integral part
of your Company’s corporate values for more than two decades. Your Company is committed to the safety and health of
employees, protecting the environment and the quality of life in all regions in which your Company operates.
Your Company voluntarily started contributing to the CSR initiatives since 1995-96 i.e. much before the legislations made
it compulsory for the corporates. Your Company used to donate 1% of its consolidated net profits till FY 2011-12 and 1.25%
of its consolidated net profits till FY 2013-14. Thereafter, the Company is contributing 2% of the average net profit on
unconsolidated basis of preceding three financial years.
To institutionalize the CSR initiative of your Company and to develop a systematic approach to administer the process of
grant of donations, your Company formed a Public Charitable Trust named as ‘Persistent Foundation’(the Foundation) in
the financial year 2008-09.
A little help goes a long way. The story of Persistent Foundation stands as proof of this. Since 2009, the helping hand of
the Foundation has been trying to make communities and individuals stand on their feet. The Foundation started with a
humble purse of a few lakhs which gradually increased to INR 7 crores as your Company grew in size and revenue.
Projects and programs proposed to be undertaken:
Persistent Foundation is committed to contribute towards improving the quality of life that every individual enjoys and
thus, benefiting the community at large. The work of the Foundation focuses on three areas – Health, Education and
Community Development, in both Urban and Rural areas.
In each of these focus areas, key areas of work chosen by the Foundation for executing its own projects are as follows:
a. Education:
• Girls Scholarship Program for supporting girls who are undergoing their graduation in computers. The key highlight
of this program is the engagement of your Company’s employees in student selection process.
• Student Sponsorship Program through which more than 200 students are supported every year. This program is
supported by the donations from your Company’s employees.
• School uplifting program for providing infrastructural support to schools and conducting programs for improvement
of quality of education.
b. Health:
• Curative Health program by conducting cataract surgeries, facial cleft surgeries, Jaipur foot bal shalyakriya.
• Preventive Health Program through health check-ups at schools, mobile medical unit, breast cancer screening and
blood donation camps.
c. Community Development:
• Village upliftment, through watershed development under ‘Jalyukt Shivar Yojana’ of the Government of Maharashtra
• Urban upliftment through zero garbage projects, skill development programs, working for elderly and differently
abled sections of the society.
d. Assistance in Natural Calamities
More details on the CSR Policy and projects are available on the Company’s website as per the link given below:
https://www.persistent.com/investors/csr-at-persistent/
2. The Composition of the CSR Committee:
The Board of Directors of your Company has constituted the CSR Committee to help the Company to frame, monitor and
execute the CSR activities of the Company under its CSR scope. The Committee defines the parameters and observes

124 • Annual Report 2018-19

 Shaping the future of software driven business

them for effective discharge of the social responsibility of your Company.

The Composition of the CSR Committee as on March 31, 2019 was as follows:
a. Mr. Pradeep Bhargava, Chairman of the Committee and Independent Director
b. Dr. Anand Deshpande, Chairman and Managing Director
c. Prof. Deepak Phatak, Independent Director
d. Mr. Prakash Telang, Independent Director
3. Average net profit of the Company for last three financial years for the purpose of calculating prescribed CSR
expenditure to be made during financial year 2018-19 under Section 135(5) of the Companies Act, 2013:

(In ` Million)
Financial Year Net profit
2017-18 4,454.44
2016-17 3,943.00
2015-16 3,464.56
Total 11,862.00
Average Net Profit for last three financial years: ` 3,954.00 Million
4. Prescribed CSR expenditure
Two percent of average net profit of the Company for last three financial years: ` 79.08 Million
5. Details of CSR spent during the financial year
a. Total amount to be spent for FY 2018-19: ` 79.08 Million
Actual amount spent during FY 2018-19: ` 80.36 Million
b. Amount unspent, if any: Nil.

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 a. Manner in which the amount spent during FY 2018-19 is given below:

(In ` Million)
Sr. CSR Project Thrust Area Village / City / State Amount Outlay Actual Expenditure Amount Spent Foundation’s Project NGO / Section
No. Taluka / District Budget Project On Project On Overheads Cumulative Direct Through Through Partner’s Name 8 Company
wise Expenditure Foundation Foundation's
upto reporting Project
date Partner
1 School Upliftment- Education Pune, Nagpur, Maharashtra, 9.59 9.59 9.59 9.59 NA NA
Infrastructure Goa, Hyderabad Goa, Telangana

126 • Annual Report 2018-19

and Bengaluru and Karnataka
2 Teachers Training Education Pune Maharshtra 14.42 14.42 14.42 14.42 Grammangal NGO
Programme
3 Kiran Girls Scholarship Education Pune, Nagpur, Maharashtra, 54.22 54.22 54.22 54.22 NA NA
Programme Goa, Hyderabad Goa, Telangana
and Bengaluru and Karnataka
4 Kiran- Girl’s Scholarship Education Pune, Nagpur, Maharashtra, 7.98 7.98 7.98 7.98 NA NA
Programme mentoring Goa, Hyderabad Goa, Telangana
Shaping the future of software driven business

program and Bengaluru and Karnataka

5 Study Center Education Pune, Nagpur Maharashtra, 23.53 23.53 23.53 23.53 Seva Sahayog Foundation, NGO and
and Hyderabad and Telangana Youth for Seva, Niramay Section 8
Bahuuddeshiya Sanstha Company
6 Cyber Champ Education Pune, Nagpur Maharashtra 1.66 1.66 1.66 1.66 NA NA
and Goa and Goa
7 School Health Education Pune, Nagpur Maharashtra 4.28 4.28 4.28 4.28 Unik Medicare Solution, Propritary
Programme and Bangaluru and Karnataka Dr. Yasmeen Anjum Patel firm/NGO
and Swami Vivekanand
Medical Mission
8 Life skill education Education Pune Maharashtra 8.00 8.00 8.00 8.00 Centre For Youth NGO
Programs Development and
Activities
9 Reading Writing Skills Education Pune Maharashtra 21.71 21.71 21.71 21.71 Manthan Educational Proprietary
Improvement project Initiative Firm
10 Nursing course Education Pune and Nagpur Maharashtra 6.10 6.10 6.10 6.10 Swa-Roopwardhinee NGO
11 Student Sponsorship Education Pune Maharashtra 3.00 3.00 3.00 3.00 Jagriti School For NGO
Program Blind Girls and Swa-
Roopwardhinee
 (In ` Million)
Sr. CSR Project Thrust Area Village / City / State Amount Outlay Actual Expenditure Amount Spent Foundation’s Project NGO / Section
No. Taluka / District Budget Project On Project On Overheads Cumulative Direct Through Through Partner’s Name 8 Company
wise Expenditure Foundation Foundation's
upto reporting Project
date Partner
12 Student Sponsorship Education Pune, Nagpur, Maharashtra, 2.03 2.03 2.03 2.03 NA NA
program for support Goa and Goa and
staff Hyderabad Telangana
13 Science Outreach Education Pune Maharashtra 5.00 5.00 5.00 5.00 IISER, Pune NGO
Program
14 Green Scholorship Education Pune Maharashtra 2.33 2.33 2.33 2.33 Rani Laxmibai Mulinchi NGO
Awards Sainik Shala
15 Rural Science center Education Pune Maharashtra 1.00 1.00 1.00 1.00 Khodad Rural Centre NGO
Society Trust
16 Pranav: Early Education Nagpur Maharashtra 5.00 5.00 5.00 5.00 Sri Gangadharrao NGO
Intervention center for Chitnavis Memorial
children with hearing Medical Research Trust
impaired at Nagpur
17 Financial assistance for Education Pune Maharashtra 3.03 3.03 3.03 3.03 Torana Rajgad Parisar NGO
running a school bus Samajonnati Nyas
for girl students in the
vicinity of Velhe
18 Construction of Education Pune Maharashtra 5.33 5.33 5.33 5.33 Torana Rajgad Parisar NGO
Anganwadi/ Community Samajonnati Nyas
Hall
19 Support to Matrushakti Education Nagpur Maharashtra 2.17 2.17 2.17 2.17 Matrushakti Kalyan NGO
kalyan Kendra Kendra
20 1 Book 1 smile Education Pune Maharashtra 1.25 1.25 1.25 1.25 Being Foundation NGO
21 Women health/Breast Health Pune and Nagpur Maharashtra 1.76 1.76 1.76 1.76 Samavedana NGO
cancer program
22 Bal Shalyakriya Health Pune and Nagpur Maharashtra 33.24 33.24 33.24 33.24 Samavedana and GSB NGO
Sabha Nagpur
23 Cataract Operations Health Pune, Nagpur, Maharashtra, 16.93 16.93 16.93 16.93 Dr. Manohar Dole NGO
Hyderabad and Telangana and Medical Foundation,
Bangaluru Karnataka Hyderabad Eye Institute,
Swami Vivekanand
Medical Mission and Sri
Vivekananda Sevashrama
Shaping the future of software driven business

24 Mobile Medicare Unit Health Goa Goa 25.13 25.13 25.13 25.13 Help Age India NGO
25 Support to individual Health Pune and Nagpur Maharashtra 6.52 6.52 6.52 6.52 NA NA
Medical cases

Report of the Directors • 127

 (In ` Million)

Sr. CSR Project Thrust Area Village / City / State Amount Outlay Actual Expenditure Amount Spent Foundation’s Project NGO / Section
No. Taluka / District Budget Project Partner’s Name 8 Company
On Project On Overheads Cumulative Direct Through Through
wise
Expenditure Foundation Foundation's
upto reporting Project
date Partner
26 Facial Cleft Health Pune, Nagpur, Maharashtra, 103.99 103.99 103.99 103.99 Akila Bharatha Mahila NGO
Goa, Hyderabad Goa, Telangana Seva Samaja, Rotary Club
and Bengaluru and Karnataka of Nagpur
27 Jaipur Foot Health Pune, Nagpur, Maharashtra, 20.66 20.66 20.66 20.66 Shri Bhagwan Mahaveer NGO

128 • Annual Report 2018-19

Goa, Hyderabad Goa, Telangana Viklang Sahayata Samiti.
and Bengaluru and Karnataka Rotary Club of Mhapsa
28 Support to Dialysis Pune, Nagpur, Maharashtra, 16.11 16.11 16.11 16.11 Seth Tarachand Ramnath NGO
Hyderabad Telangana Charitable Ayurvedic
Hospital Trust and Ashwini
Kidney and Dialysis Centre
Pvt. Ltd.
29 Physiotherapy Centre Health Goa Goa 1.74 1.74 1.74 1.74 Help Age India NGO
Shaping the future of software driven business

30 Squint Correction Health Goa Goa 4.35 4.35 4.35 4.35 SAKSHAM GOA NGO
Surgery
31 ‘Mental Health for All’ Health Pune Maharashtra 5.00 5.00 5.00 5.00 Institute for Psychological NGO
in Pune Health
32 Health Checkup camp Health Pune Maharashtra 5.00 5.00 5.00 5.00 Institute for Women NGO
at Maval Entrepreneurial
Development
33 Vocational training and Community Pune and Goa Maharashtra 12.31 12.31 12.31 12.31 Colonel's Cube and NGO
Skill development Development and Goa Sambhav Foundation
34 Support to old age home Community Pune Maharashtra 26.50 26.50 26.50 26.50 SHREE DADA MAHARAJ NGO
Development NATEKAR MORAYA
TRUST and Arpan Social
And Welfare Foundation
35 Solar energy plant Community Pune and Maharashtra 3.12 3.12 3.12 3.12 Sunshot Technologies PVT Ltd
Development Hyderabad and Telangana Pvt. Ltd Company
36 Tree Plantation and Community Pune Maharashtra 16.50 16.50 16.50 16.50 Terre Policy Centre NGO
Maintenance at Development
Mhalunge Forest land
37 Watershed Project Community Pune and Nagpur Maharashtra 81.41 81.41 81.41 81.41 International Association NGO
Development for Human Values
38 Sustainable livelihood Community Pune Maharashtra 19.03 19.03 19.03 19.03 BAIF Institute for NGO
Development Program Development Sustainable Livelihood &
BAIF Development (BISLD)
39 Drinking Water project Community Pune Maharashtra 86.71 86.71 86.71 86.71 Jnana Prabodhini NGO
Development
 (In ` Million)
Sr. CSR Project Thrust Area Village / City / State Amount Outlay Actual Expenditure Amount Spent Foundation’s Project NGO / Section
No. Taluka / District Budget Project Partner’s Name 8 Company
On Project On Overheads Cumulative Direct Through Through
wise
Expenditure Foundation Foundation's
upto reporting Project
date Partner
40 Support to Nadi vahate Community Pune Maharashtra 0.30 0.30 0.30 0.30 Sahaj Film Private Limited PVT Ltd
film Development Company
41 Administrative expenses Admin Pune, Nagpur, Maharashtra, 34.47 34.47 34.47 34.47 NA NA
Hyderbad, Goa, Telangana
Bengaluru, Goa and Karnataka
42 Donations to associates All Pune, Nagpur Maharashtra 17.62 17.62 17.62 17.62 NA NA
NGOs
43 Project supported All Pune, Nagpur, Maharashtra, 75.15 75.15 75.15 75.15 NA NA
through Employee Hyderbad, Goa, Telangana
Donation Bengaluru, Goa and Karnataka
44 Donation to LAKSHYA Community Pune Maharashtra 60.00 60.00 14.00 74.00 74.00 NA NGO
Development
45 Donation to Health Pune Maharashtra 1.50 1.50 1.50 1.50 Medical
Maharashtra Medical Institute
Research Society
46 Donation to Aryan Education Mumbai Maharashtra 1.00 1.00 1.00 1.00 Educational
Education Society Institution
47 Donation to Bhartiya Education Pune Maharashtra 1.25 1.25 1.25 1.25 Educational
Vidya Bhavan Institution
48 Donation to Care India Health Pune Maharashtra 1.25 1.25 1.25 1.25 Medical
Medical Society Institute
49 Donation to Cancer Health Pune Maharashtra 1.00 1.00 1.00 1.00 Medical
Patient Aid Association Institute
50 Donation to FPA Health Pune Maharashtra 1.00 1.00 1.00 1.00 Medical
Association Institute
51 Donation to H.V. Desai Health Pune Maharashtra 1.00 1.00 1.00 1.00 Medical
Eye Hospital Institute
52 Donation to Health and Pune Maharashtra 1.00 1.00 1.00 1.00 NGO
Deepastambha Environement
Charitable Trust
53 Donation to SAMPARC Orphanage Pune Maharashtra 1.00 1.00 1.00 1.00 NGO
Shaping the future of software driven business

54 Donation to Savali Community Pune Maharashtra 1.25 1.25 1.25 1.25 NGO
Development
Total 866.43 866.43 14.00 880.43 62.75 84.74 582.82

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 Shaping the future of software driven business

6. In case the Company has failed to spend the two percent of the average net profit of the last three financial years or any
part thereof, the Company shall provide the reason for not spending the amount in its Board’s report : Not applicable
7. Responsibility statement of CSR Committee:
We hereby confirm that the implementation and monitoring of CSR policy is in compliance with Company’s CSR objective
and CSR Policy of the Company.
On behalf of the Board of Directors

Dr. Anand Deshpande Pradeep Bhargava

Chairman and Managing Director Chairman of the CSR Committee
DIN: 00005721 DIN: 00525234

Place : Pune
Date : April 26, 2019

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Report on Corporate Governance

Company’s beliefs on Corporate Governance
“Corporate Governance is concerned with the holding the balance between economic and social goals and between individual
and communal goals. The Governance framework is there to encourage the efficient use of resources and equally to require
accountability for the stewardship of those resources. The aim is to align as nearly as possible in the interest of individuals,
corporations and society.” by Sir Adrian Cadbury, UK
The Company believes in exceeding the highest standards of corporate governance as it enhances the long-term value of
the Company for its stakeholders. Good governance is an essential ingredient of good business. The following report on the
implementation of the Corporate Governance Code is a sincere effort of the Company to follow the Corporate Governance
Principles in its letter and spirit.
1. Board of Directors
A. Size and composition of the Board
The Board of Directors of the Company has a combination of Executive, Non-Executive and Independent Directors with varied
professional background. As on March 31, 2019, the Company’s Board consisted of Eleven Directors: Two Executive Directors,
Eight Independent Directors and One Non-Executive Non-Independent Director. The Board of your Company is of the opinion
that the Independent Directors fulfill the condition specified in the SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015 (Listing Regulations). The Board is chaired by a full time Executive Director. Table 1 gives the composition of
the Board and the number of outside directorships held by each of the Directors as on March 31, 2019:
Table 1: Board of Directors

Name of the Director and Category Directorships Number of Committee

Director's Identification Positions held **
Number (DIN) Indian Companies Foreign Chairman Member
Public* Private Companies
Dr. Anand Deshpande Chairman and Managing 2 2 4 NIL 1
(DIN 00005721) Director
Ms. Roshini Bakshi Independent Director 2 1 NIL NIL NIL
(DIN 01832163)
Mr. Pradeep Bhargava Independent Director 5 2 NIL 1 3
(DIN 00525234)
Mr. Sanjay Bhattacharyya Independent Director 7 NIL NIL 2 7
(DIN 01924770)
Mr. Guy Eiferman Independent Director NIL NIL 1 NIL NIL
(DIN 08101854)
Dr. Anant Jhingran Independent Director NIL NIL NIL NIL NIL
(DIN 05116722)
Mr. Thomas (Tom) Kendra Non-Executive NIL NIL 1 NIL NIL
(DIN 07406678) Non-Independent Director
Prof. Deepak Phatak Independent Director 3 3 NIL NIL 1
(DIN 00046205)
Mr. Sunil Sapre Executive Director and NIL 1 8 NIL 1
(DIN 06475949) Chief Financial Officer
Mr. Prakash Telang Independent Director 4 1 NIL 2 6
(DIN 00012562)
Mr. Kiran Umrootkar Independent Director 1 NIL NIL 1 2
(DIN 00326672)
* Excluding directorship in Persistent Systems Limited
** Disclosure includes Chairmanship / Membership of Committees as required for computation of maximum number of
Committees of which Director can be Chairman or Member in terms of Regulation 26 of SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 (i.e. Chairmanship / Membership of Audit Committee and Stakeholders’ Relationship
Committee in all Indian public companies including Persistent Systems Limited). The number of Memberships of the Directors
in the Audit / Stakeholder Committee includes the number of post of Chairperson of the said Committee held in listed entities.

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 Shaping the future of software driven business

The number of Memberships of the Directors in the Committee includes the number of posts of Chairman of the said Committee
held in listed entities including Persistent Systems Limited.
Table 2: Details of the Directorships in other Indian listed entities

Name of the Director and Category Directorships Name of Listed

Director’s Identification in other Listed Entities
Number (DIN) Entities
Dr. Anand Deshpande Chairman and Managing Director NIL
(DIN 00005721)
Ms. Roshini Bakshi Independent Director NIL
(DIN 01832163)
Mr. Pradeep Bhargava Independent Director 3 (Three) 1. Automotive
(DIN 00525234) Stampings and
Assemblies Limited
2. Himatsingka Seide
Limited
3. Torrent
Pharmaceuticals
Limited
Mr. Sanjay Bhattacharyya Independent Director 2 (Two) 1. Dabur India
(DIN 01924770) Limited
2. Wanbury Limited
Mr. Guy Eiferman Independent Director NIL
(DIN 08101854)
Dr. Anant Jhingran Independent Director NIL
(DIN 05116722)
Mr. Thomas (Tom) Kendra Non-Executive Non-Independent Director NIL
(DIN 07406678)
Prof. Deepak Phatak Independent Director 1 (One) HDFC Asset
(DIN 00046205) Management
Company Limited
Mr. Sunil Sapre Executive Director and Chief Financial Officer NIL
(DIN 06475949)
Mr. Prakash Telang Independent Director 3 (Three) 1. Cummins India
(DIN 00012562) Limited
2. Kennametal India
Limited
3. SKF India Limited
Mr. Kiran Umrootkar Independent Director NIL
(DIN 00326672)
None of the Directors of the Company were members of more than 10 Committees or acted as the Chairman of more than
5 Committees across all companies in India, in which he/she is a Director, in terms of Regulation 26 of Listing Regulations.
Further, the Independent Directors have made the declaration that they are ‘Independent’ and their directorships in the above
companies and their committees and they confirm that those do not conflict with the interest of Persistent Systems Limited.
There is no inter-se relationship between the Directors.
In addition to disclosure of Chairmanship / Membership of Committees of Directors disclosed in Table 1 above, the Chairmanship
/ Membership of Directors of the Company in other Committees (excluding Chairmanship / Membership in Private Limited
Companies) as on March 31, 2019 is given below:

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Table 3: Chairmanship / Membership of Directors of the Company in other Committees

Name of the Director Category Membership in Chairmanship in

Committees* Committees*
Dr. Anand Deshpande Chairman and Managing Director 1 NIL
Ms. Roshini Bakshi Independent Director 2 NIL
Mr. Pradeep Bhargava Independent Director 7 4
Mr. Sanjay Bhattacharyya Independent Director 7 1
Mr. Guy Eiferman Independent Director
Dr. Anant Jhingran Independent Director 2 NIL
Mr. Thomas (Tom) Kendra Non-Executive and Non-Independent Director 1 NIL
Prof. Deepak Phatak Independent Director 1 NIL
Mr. Sunil Sapre Executive Director and Chief Financial Officer 2 NIL
Mr. Prakash Telang Independent Director 7 4
Mr. Kiran Umrootkar Independent Director 5 1
*Includes Committees (other than Audit Committee and Stakeholders Relationship Committee) of all companies in India and
abroad, including Persistent Systems Limited.
B. Brief description of terms of reference of the Board of Directors:
i. To manage and direct the business and affairs of the Company;
ii. To manage, subject to the Articles of Association of the Company, its own affairs, including planning its composition,
selecting its Chairman, appointing Committees, establishing the terms of reference and duties of Committees and
determining Directors’ compensation;
iii. To act honestly and in good faith in the best interests and objects of the Company, its employees, its shareholders, the
community and for protection of environment;
iv. To exercise due care, diligence and skill that a reasonably prudent person would exercise in comparable circumstances and
shall also exercise independent judgement;
v. To participate directly or through its Committees, in developing and approving the mission of the business, its objectives
and goals and the strategy for their achievement;
vi. To ensure congruence between shareholders’ expectations, Company’s goals, objectives and management performance;
vii. To monitor the Company’s progress towards its goals and to revise and alter its direction in light of changing circumstances;
viii. To approve and monitor compliance with all significant policies and procedures by which the Company is operated;
ix. To ensure that the Company operates at all times within applicable laws and regulations and ethical and moral standards;
x. To ensure that the performance of the Company is adequately reported to shareholders, other stakeholders and regulators
on a timely and regular basis;
xi. To ensure that the audited annual financial statements are reported fairly and in accordance with the Accounting
Standards issued by the Institute of Chartered Accountants of India;
xii. To ensure that any developments that have a significant and material impact on the Company are reported from time to
time to the concerned authorities;
xiii. Not to involve in a situation which may have a direct or indirect interest that conflicts, or possibly may conflict with the
interest of the Company;
xiv. Not to achieve or attempt to achieve any undue gain or advantage either to himself or to his relatives, partners or
associates and if such director is found guilty of making any undue gain, he shall be liable to pay an amount equal to that
gain to the Company;
xv. Not to assign his office and any assignment so made shall be void; and
xvi. To act in accordance with the laws and regulations of the country and the Memorandum and Articles of Association of the
Company.

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 Shaping the future of software driven business

C. Chart setting out the competencies of the Board:

The Board of Directors take into consideration the following parameters while nominating the candidates to serve on the Board:
1. Technical expertise
2. Large-scale global operations
3. Strategy and planning
4. Financial, treasury management and taxation expertise
5. Governance, Compliance and Audit purview
In the table below, the specific areas of focus and expertise of individual Board Members have been highlighted. However,
the absence of mark against a Member’s name does not necessarily mean the Member does not possess the corresponding
qualification or skill.
Table 4: Details of the specific areas of focus and expertise of individual Board Members

Name of the Director Technical Large- Strategy and Financial, Governance,

expertise scale global planning treasury Compliance and
operations management Audit purview
and taxation
expertise
Dr. Anand Deshpande     
Ms. Roshini Bakshi -    
Mr. Pradeep Bhargava -    
Mr. Sanjay Bhattacharyya -    
Mr. Guy Eiferman    - -
Dr. Anant Jhingran    - -
Mr. Thomas (Tom) Kendra    - -
Prof. Deepak Phatak  -  - 
Mr. Sunil Sapre -    
Mr. Prakash Telang -    
Mr. Kiran Umrootkar -    
D. Board meetings and deliberations:
The Company Secretary in consultation with the Chairman of the Company and Chairman of the respective Board Committees
prepares the agenda and supporting papers for discussion at each Board meeting and Committee meetings, respectively.
Members of the Board or Committees are free to suggest any item to be included in the agenda, in addition to their right to
bring up matters for discussion at the meeting with the permission of the Chairman.
Information and data that is important to the Board to understand the business of the Company in general and related matters
are tabled for discussion at the meeting. Agenda is circulated in writing to the members of the Board seven days in advance
before the meeting.
The Board and the Audit Committee meet in executive session, at least four times during a financial year, mostly at quarterly
intervals inter alia to review quarterly financial statements and other items on the agenda. Additional meetings are held, if
deemed necessary, to conduct the business. Those members of the Board, who are not able to participate in the Board meetings
in-person, generally participate in the meeting through video-conferencing. The Business Unit Heads, Chief Financial Officer
and Chief Planning Officer of the Company attend the Board and Committee meetings upon invitation. The other executives
and delivery heads are generally invited at the meetings on need basis. In terms of Regulation 17 of Listing Regulations, the gap
between two Board meetings has not exceeded one hundred and twenty days. The maximum gap between two Board meetings
held during the financial year 2018-19 was Ninety-Six days i.e. from October 21, 2018 to January 27, 2019.
During the year under report, all recommendations given by the various committees of the Board have been accepted by the
Board of Directors.

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During the financial year 2018-19, the Board of Directors met five times on April 23 and 24, 2018, June 7, 2018,
July 27 and 28, 2018, October 20 and 21, 2018 and January 27 and 28, 2019. Table 5 below gives the attendance record of the
Directors at the Board meetings and the last Annual General Meeting held on July 27, 2018. In this report, the signs below,
wherever they appear, denote the following:
Y – Present for the meeting in person; N – Absent for the meeting; C – Chairperson;
AVC – Attended through Video Conferencing
Table 5: Attendance of Directors at the Board Meetings and Annual General Meeting (AGM)

Name of the Director ------------------- Board Meetings -------------------

AGM held on
April June July October January
July 27, 2018
23 & 24, 2018 7, 2018 27 & 28, 2018 20 & 21, 2018 27 & 28, 2019
Dr. Anand Deshpande (C) Y Y Y Y Y Y
Ms. Roshini Bakshi N N Y N Y Y
Mr. Pradeep Bhargava Y Y Y Y Y Y
Mr. Sanjay Bhattacharyya Y N N AVC N N
Mr. Guy Eiferman Y N AVC Y Y N
Dr. Anant Jhingran N AVC Y AVC N Y
Mr. Thomas Kendra N AVC Y N Y Y
Prof. Deepak Phatak Y N Y Y Y Y
Mr. Sunil Sapre Y Y Y Y Y Y
Mr. Prakash Telang Y Y Y Y Y Y
Mr. Kiran Umrootkar Y Y Y Y Y Y
E. Board Offsite:
As part of our annual strategy planning process, your Company organizes an offsite for the Board Members and Senior
Executives to deliberate on various topics related to technological overview, global scenario for IT industry, sales strategy,
market research, risk overview, succession planning and strategic programs required to achieve the Company’s long term
objectives.
This serves a dual purpose of providing a platform for Board Members to bring their expertise to the projects, while also
providing an opportunity for them to understand detailed aspects of execution and challenges relating to the business of
the Company.
The above are specific mechanisms through which the Board Members are familiarized with the Company culture and operations.
Apart from these, there are additional sessions on demand on specific topics. All Directors attend the Familiarization Programs
as these are scheduled to coincide with the Board Meeting calendar to give them an opportunity to attend.
2. Committees of the Board of Directors
As on March 31, 2019, the Company has 7 (Seven) Committees of the Board of Directors viz. Audit Committee, Compensation
and Remuneration Committee, Nomination and Governance Committee, Risk Management Committee, Stakeholders
Relationship Committee, Corporate Social Responsibility (CSR) Committee and Executive Committee. The Board Committees
are represented by a combination of Executive and Independent/Non-Executive Directors. The Chairmen of all the Committees
are the Independent Directors.
As per the charter of respective Committees, Committees deliberate on the matters assigned / referred to it by the Board or
as mandated by the statutes. Information and data that is important to the Committees to discuss the matter is distributed in
writing to the members of the Committees well in advance of the meeting. Recommendations of the Committees are submitted
to the Board to take decision on the matter requiring the Board’s decision. In any case, the minutes of all Committee meetings
are circulated to the Board members for information / noting.
The members of the Committee, who are not able to participate in the meeting in-person, generally participate through
video-conferencing.
A. Audit Committee
Brief description
The Audit Committee was voluntarily constituted by the Board at its meeting held on April 23, 2004, even before the Company
was converted into a public limited company.

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The Audit Committee ensures prudent financial and accounting practices, fiscal discipline and transparency in financial
reporting. In terms of one of its important terms of reference, the quarterly financial statements are reviewed by the Audit
Committee and recommended to the Board for its adoption.
All the members of the Committee are financially literate whereas the Chairman of the Committee is a financial
management expert.
Table 6 gives the composition of the Audit Committee of the Board of Directors as on March 31, 2019:
Table 6: Composition of the Audit Committee

Name of the Director Category

Mr. Kiran Umrootkar Chairman of the Committee and Independent Director
Mr. Pradeep Bhargava Independent Director
Mr. Sanjay Bhattacharyya Independent Director
Mr. Prakash Telang Independent Director

The Committee was reconstituted during the financial year 2018-19 by inducting Mr. Prakash Telang, Independent Director in
place of Mr. Sunil Sapre, Executive Director and Chief Financial Officer.
In addition to the Audit Committee members, Statutory Auditors, Chief Financial Officer, Chief Planning Officer, Head – Internal
Audit, Chief People Officer, Chief Admin Officer, Business Unit Heads and other executives are invited to the Audit Committee
Meetings, on need basis. The Company Secretary of the Company is the Secretary of the Committee.
Necessary information such as Management Discussion and Analysis of financial performance and results of operations,
statement of significant related party transactions submitted by the management, management letters / letters of internal
control weaknesses issued by the statutory auditors, internal audit reports relating to internal control weaknesses and the
terms relating to internal auditors in terms of Regulation 18 of Listing Regulations are reviewed by the Audit Committee.
The Committee considers all the material Related Party Transactions of the Company for its approval. The Committee meets
the Statutory Auditors without the executive management in every quarter.
The Committee has the following powers and responsibilities including but not limited to:
i. To oversee the Company’s financial reporting process and the disclosure of its financial information to ensure that the
financial statements are correct, sufficient and credible;
ii. To review, with the management, annual financial statements and auditor’s report before submission to the Board for
approval, with particular reference to -
a) Matters required to be included in the Directors’ Responsibility Statement to be included in the Board’s report in
terms of Clause (5) of Section 134 of the Companies Act, 2013;
b) Changes, if any, in accounting policies and practices and reasons for the same;
c) Major accounting entries involving estimates based on the exercise of judgement by management;
d) Significant adjustments made in the financial statements arising out of audit findings;
e) Compliance with the listing and other legal requirements relating to financial statements;
f) Disclosure of any related party transactions;
g) Qualifications in the draft audit report.
iii. To review, with the management, the quarterly financial statements and auditor’s report before submission to the Board
for approval;
iv. To recommend to the Board, the appointment, re-appointment and if required, the replacement or removal of the
statutory auditor and fixation of audit fees;
v. To grant approval of payment to statutory auditors for any other services rendered by the statutory auditors;
vi. To hold discussion with the statutory auditors before the audit commences about the nature and scope of audit as well
as post-audit discussion to ascertain any area of concern;

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vii. To review management letters / letters of internal control weaknesses issued by the statutory auditors;
viii. To recommend appointment, removal and terms of remuneration of the Chief Internal Auditor;
ix. To hold discussion with Internal Auditors on any significant findings and follow up there on;
x. To review internal audit reports relating to internal control weaknesses;
xi. To review, with the management, performance of statutory and internal auditors and adequacy of internal
control systems;
xii. To review adequacy of internal audit function, if any, including the structure of the internal audit department, staffing
and seniority of the official heading the department, reporting structure coverage and frequency of internal audit;
xiii. To review the findings of any internal investigations by the internal auditors in the matters where there is suspected
fraud or irregularity or a failure of internal control systems of a material nature and reporting the matter to the Board;
xiv. To review management discussion and analysis of financial condition and results of operations;
xv. To review statement of significant related party transactions (as defined by the Audit Committee), submitted
by management;
xvi. Approval or any subsequent modification of transactions of the Company with the related party.
xvii. To review substantial defaults in the payment to the depositors, debenture holders, shareholders (in case of non-payment
of declared dividends) and creditors;
xviii. To develop a policy on the engagement of statutory auditors for non-audit services;
xix. To ensure the compliance with the statutory auditors’ recommendations;
xx. To meet internal and statutory auditors without presence of the Company’s executive management periodically;
xxi. To confirm the engagement of an Independent valuer for the valuation of shares, whenever called for and verify whether
the valuer for valuation has an advisory mandate and had past association with the Company management;
xxii. To review certificates regarding compliance of legal and regulatory requirements;
xxiii. To review the functioning of the Whistle Blower mechanism;
xxiv. To review, with the management, the statement of uses / application of funds raised through an initial public offering of
the Company, the statement of funds utilised for purposes other than those stated in prospectus and making appropriate
recommendations to the Board to take up steps in this matter;
xxv. Approval of appointment of CFO (i.e. the whole-time Finance Director or any other person heading the finance function
or discharging that function) after assessing the qualifications, experience and background, etc. of the candidate;
xxvi. Scrutiny of inter-corporate loans and investments; and
xxvii. To carry out any other function as is mentioned in the terms of reference of the Audit Committee and entrusted by
the Board;
xxviii. To review the utilization of loans and/ or advances from/investment by the holding company in the subsidiary exceeding
` 100 Crore or 10% of the asset size of the subsidiary, whichever is lower including existing loans / advances / investments
existing as on the date of coming into force of this provision (Effective from April 1, 2019); and
xxix. To review the compliance with the provisions of these SEBI Insider Trading Regulations at least once in a
financial year and shall verify that the systems for internal control are adequate and are operating effective
(Effective from April 1, 2019).
The Audit Committee is further empowered to do the following:
i. To investigate any activity within terms of reference;
ii. To seek information from any employee;
iii. To obtain outside legal professional advice; and
iv. To secure attendance of outsiders with relevant expertise, if it considers necessary.

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Meetings and attendance

Four meetings of the Audit Committee were held during the financial year 2018-19.
Table 7 gives the details of the attendance of the members of the Audit Committee at its meetings held during the financial year
2018-19. Further, certain decisions were taken by passing the resolutions by way of circulation and were subsequenty noted and
taken on record by the Board and the Audit Committee at next meetings.
Table 7: Details of the attendance at the Audit Committee meetings held during the financial year 2018-19

Name of the Director <---------------------- Audit Committee Meeting ------------------------>

April 23, 2018 July 27, 2018 October 20, 2018 January 27, 2019
Mr. Kiran Umrootkar (C) Y Y Y Y
Mr. Pradeep Bhargava Y Y Y Y
Mr. Sanjay Bhattacharyya Y N AVC AVC
Mr. Prakash Telang* NA NA NA Y
Mr. Sunil Sapre** Y Y NA NA
*Appointed as a Member of the Committee w.e.f. January 27, 2019
**Stepped down from the Committee w.e.f. July 27, 2018
B. Compensation and Remuneration Committee
Brief description
The Compensation and Remuneration Committee of the Board was constituted on April 23, 2004. In terms of erstwhile the
SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999 (‘SEBI ESOP Guidelines’), the
Company re-constituted Compensation and Remuneration Committee for the administration and superintendence of the
employee stock options schemes on October 4, 2007. The Committee was reconstituted as on April 24, 2018, by inducting
Mr. Guy Eiferman as a Member.
The Board of Directors at its meeting held in April 2014 named this Committee as the Nomination and Remuneration Committee
for the purpose of provisions under the Companies Act, 2013 (the ‘Act’) with respect to the terms of the Compensation and
Remuneration Committee of the Company covered under the statutory terms of the Nomination and Remuneration Committee.
The Chairman and all members of the Committee are Independent Directors except Mr. Kendra who is the Non-Executive
Non-Independent Director.
The Company Secretary of the Company is the Secretary of the Committee.
Table 8 gives the composition of the Compensation and Remuneration Committee of the Board of Directors as on
March 31, 2019.
Table 8: Composition of the Compensation and Remuneration Committee

Name of the Director Category

Mr. Prakash Telang Chairman of the Committee and Independent Director
Ms. Roshini Bakshi Independent Director
Mr. Sanjay Bhattacharyya Independent Director
Mr. Guy Eiferman Independent Director
Mr. Thomas Kendra Non-Executive Non-Independent Director
The Committee is constituted with powers and responsibilities including but not limited to:
i. To review general compensation policy of the Company (including that of ESOPs) and convey its recommendation to the
Board, if any;
ii. To advise the Board in framing remuneration policy for Key Managerial Personnel, CXO Level Employees and Senior
Management of the Company from time to time (Effective from the date of Board Meeting in April 2019);
iii. To make recommendations to the Board about the Company’s policy on specific remuneration packages for Executive
Directors including pension rights and any compensation payment;
iv. To determine and decide the following Stock Options related activities:

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a. To decide the quantum of equity shares / options to be granted under Employee Stock Options Schemes (ESOPs/ ESOS
/RSU Schemes), per employee and the total number in aggregate
b. To determine at such intervals, as the Compensation and Remuneration Committee considers appropriate, the persons
to whom shares or options may be granted;
c. To determine the exercise period within which the employee should exercise the option and condition in which option
will lapse on failure to exercise the option within the exercise period;
d. To decide the conditions under which shares or options vested in employees may lapse in case of termination of
employment for any reason;
e. To lay down the procedure for making a fair and reasonable adjustment to the number of shares or options and to the
exercise price in case of rights issues, bonus issues and other corporate actions;
f. To lay down the right of the employee to exercise all the options vested in him at one time or at various points of time
within the exercise;
g. To specify the grant, vest and exercise of shares / options in case of employees who are on long leave;
h. To construe and interpret the plan and to establish, amend and revoke rules and regulations for its administration;
i. The Compensation and Remuneration Committee may correct any defect, omission or inconsistency in the plan or any
option and / or vary / amend the terms to adjust to the situation that may arise;
j. To approve transfer of shares in the name of employee at the time of exercise of options by such employee under
ESOPs/ ESOS /RSU Schemes;
k. To lay down the procedure for cashless exercise of options; and
l. To attend any other responsibility as may be entrusted by the Board.
Meetings and attendance
The Compensation and Remuneration Committee generally meets in the first or second quarter of the financial year to
recommend the remuneration to be paid to the Managing Director and Executive Director/s of the Company and to advise
the Board in framing remuneration policy for its Business Unit Heads, Head – Operations and Key Managerial Personnel of the
Company from time to time. Apart from this, the Compensation and Remuneration Committee meets as and when there is any
business to be transacted which has been assigned to it.
3 (Three) meetings of the Compensation and Remuneration Committee were held during the financial year 2018-19.
Table 9 gives the details of the attendance of the members of the Compensation and Remuneration Committee at its meetings
held during the financial year 2018-19. However, certain decisions were also taken by passing resolutions by way of circulation.
The above mentioned resolutions were subsequently noted and taken on record by the Board and this Committee at its
next meeting.
Table 9: Details of the attendance at the Compensation and Remuneration Committee meeting during the
financial year 2018-19

Name of the Director <-------------Compensation and Remuneration Committee Meeting ------------->

April 24, 2018 July 27, 2018 January 27, 2019
Mr. Prakash Telang (C) Y Y Y
Ms. Roshini Bakshi N Y Y
Mr. Sanjay Bhattacharyya Y N AVC
Mr. Guy Eiferman* NA AVC Y
Mr. Thomas Kendra N Y Y
*Appointed as a Member of the Committee w.e.f. April 24, 2018
Remuneration policy (as updated from time to time)
i. The remuneration of full time directors (Managing Director and Executive Director) is divided in the following proportion:
a. Fixed portion is 60% of the Annual Gross Salary.
b. Variable portion is 40% based on Company Performance, Unit Performance and Intangible parameters
c. Such perquisites and benefits as authorized by the resolution passed by members of the Company from time to time.

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ii. All the Independent Directors are entitled to payment of commission at a sum not exceeding 1% per annum of net profits.
Few Independent Directors have been granted Stock Options before April 1, 2014. However, no Independent Director has
excised any option during the year under report.
iii. The total managerial remuneration not to exceed 11% of the net profits of the Company (INR 487.96 Million for FY 2018-19)
and the total remuneration to the managerial persons not to exceed 10% of the net profits of the Company (INR 443.60
Million for FY 2018-19) in accordance with Section 197 of the Act.
Remuneration to the Directors
The Company pays Executive Directors’ remuneration by way of salary, benefits, perquisites and allowances (fixed component)
and performance incentives (variable component). Annual increments are decided by the Compensation and Remuneration
Committee of the Board of Directors and are within the range of the remuneration approved by the Members.
Table 10 and Table 11 gives details of remuneration paid to Executive, Non-Executive and Independent Directors of the Company,
respectively, in the financial years 2017-18 and 2018-19.
Table 10: Remuneration to Executive Directors^
(In ` Million)

Name of the Category Year ended Salary and Performance Company’s Perquisite Total
Director March 31 allowance Linked contribution to and other
Incentive / provident and payments
Commission superannuation fund
Dr. Anand Chairman and 2019 11.04 9.10 1.57 0.08 21.79
Deshpande Managing 2018 8.48 9.50 1.47 0.09 19.54
Director
Mr. Sunil Sapre Executive 2019 6.41 4.35 0.83 0.88# 12.47
Director and 2018 5.62 4.78 0.29 1.02# 11.71
Chief Financial
Officer
Total 2019 17.45 13.45 2.40 0.96 34.26
2018 14.10 14.28 2.40 1.11 31.25
Notes:
^ Overall Ceiling as per the Act and Remuneration Policy of the Company: INR 443.60 Million (being 10% of net profit of the
Company calculated as per Section 198 of the Companies Act, 2013)
# The value of perquisites represents the amount of perquisites towards exercise of stock options which does not form part of
CTC (Cost to Company)
Service contracts, notice period, severance fees
The Company does not have any policy for service contracts, notice period and severance fees or any other payment to the
Independent Directors w.r.t. their dis-association from the Company.
Section 197 of the Act provides that a Director who is not in the whole-time employment of the Company (i.e. Non - Executive
Director) may be paid remuneration by way of commission at a sum not exceeding 1% per annum of net profits.
Table 11: Remuneration to Non-Executive Directors^
(In ` Million)

Name of the Director Category Year ended Salary and Commission* Sitting Others** Total
March 31 Allowance fees*
Ms. Roshini Bakshi Independent 2019 N.A 1.700 0.500 N.A 2.200
Director 2018 N.A 1.600 0.400 N.A 2.000
Mr. Pradeep Bhargava Independent 2019 N.A 1.700 1.075 N.A 2.775
Director 2018 N.A 1.600 1.075 N.A 2.675
Mr. Sanjay Bhattacharyya Independent 2019 N.A 1.700 0.600 N.A 2.300
Director 2018 N.A 1.600 0.600 N.A 2.200
Mr. Guy Eiferman Independent 2019 N.A 1.599 0.395 N.A 1.994
Director 2018 N.A - - - -

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Name of the Director Category Year ended Salary and Commission* Sitting Others** Total
March 31 Allowance fees*
Dr. Anant Jhingran Independent 2019 N.A 1.700 0.275 N.A 1.975
Director 2018 N.A 0.574 0.075 N.A 0.649
Mr. Thomas Kendra Non-Executive 2019 N.A 1.700 0.325 23.07 25.095
Non-Independent 2018 N.A 1.600 0.500 10.68 12.780
Director
Prof. Deepak Phatak Independent 2019 N.A 1.604 0.350 N.A 1.954
Director 2018 N.A - - - -
Mr. Prakash Telang Independent 2019 N.A 1.700 0.775 N.A 2.475
Director 2018 N.A 1.600 0.600 N.A 2.200
Mr. Kiran Umrootkar Independent 2019 N.A 1.700 1.100 N.A 2.800
Director 2018 N.A 1.600 0.650 N.A 2.250
Total 2019 N.A 15.102 5.395 23.07 43.567
2018 N.A 10.174 3.900 10.68 24.754
^ Overall Ceiling as per the Act and Remuneration Policy of the Company: INR 44.36 Million (being 1% of net profit of the
Company calculated as per Section 198 of the Companies Act, 2013)
* Commission and Sitting fees are excluding service tax/Goods and service tax.
** The Company has an arrangement with Mr. Thomas Kendra, Non-Executive Non Independent Director through his concern,
Ms. Azure Associates, LLC since April 1, 2017.
Travel or stay arrangements have been provided mainly to the outstationed directors, for travel and/or stay expenses for
attending Board and Committee Meetings.
All the Non-Executive Directors are entitled to payment of commission at a sum not exceeding 1% per annum of net profits.
Few Independent Directors have been granted Stock Options before April 1, 2014. However, no Independent Director has excised
any option during the year under report.
Table 12 gives the following details:
• Details of stock options granted to Independent Directors and stock options granted and vested but not exercised as on
March 31, 2019. (Refer Table 12A)
• Details of shares held by Independent Directors as on March 31, 2019. (Refer Table 12B)

Table 12A: Stock Options granted to Independent Directors and Non-Executive Non-Independent Director, which are
vested but not exercised as on March 31, 2019:

Name of the Director Year ended Scheme under which Number of stock Stock options vested but
March 31, options are granted options granted not exercised
Ms. Roshini Bakshi* 2019 ESOP X NIL NIL
2018 ESOP X NIL NIL
Mr. Pradeep Bhargava 2019 ESOP X NIL NIL
2018 ESOP X NIL NIL
Mr. Sanjay Bhattacharyya 2019 ESOP X NIL NIL
2018 ESOP X NIL NIL
Mr. Guy Eiferman* 2019 ESOP X NIL NIL
2018 ESOP X NIL NIL
Dr. Anant Jhingran* 2019 ESOP X NIL NIL
2018 ESOP X NIL NIL
Mr. Thomas (Tom) Kendra* 2019 ESOP X NIL NIL
2018 ESOP X NIL NIL
Prof. Deepak Phatak* 2019 ESOP X NIL NIL
2018 ESOP X NIL NIL
Mr. Prakash Telang 2019 ESOP X NIL NIL
2018 ESOP X NIL NIL

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Name of the Director Year ended Scheme under which Number of stock Stock options vested but
March 31, options are granted options granted not exercised
Mr. Kiran Umrootkar 2019 ESOP X NIL 8,000
2018 ESOP X NIL 8,000
Total 2019 ESOP X NIL 8,000
2018 ESOP X NIL 8,000
* Ms. Roshini Bakshi, Mr. Guy Eiferman, Dr. Anant Jhingran, Prof. Deepak Phatak and Mr. Thomas Kendra are not eligible for
ESOPs as their appointment was post April 1, 2014.
Table 12B: Shares held by Independent Directors and Non-Executive Non-Independent Directors as on March 31, 2019:

Name of the Director Shares held Shares held Shares held Total Shares held
(through exercise (through allotment (through market
of vested stock under a pre IPO purchase / IPO)
options) scheme)
Ms. Roshini Bakshi NIL NIL NIL NIL
Mr. Pradeep Bhargava 13,600 NIL NIL 13,600
Mr. Sanjay Bhattacharyya 14,000 NIL NIL 14,000
Mr. Guy Eiferman NIL NIL NIL NIL
Dr. Anant Jhingran NIL NIL NIL NIL
Mr. Thomas Kendra NIL NIL NIL NIL
Prof. Deepak Phatak NIL NIL NIL NIL
Mr. Prakash Telang 14,000 NIL 4,000 18,000
Mr. Kiran Umrootkar 6,000 NIL NIL 6,000

There is no pecuniary and non-pecuniary relationship between the Non-Executive Directors vis-a-vis the Company except as
stated above.
C. Nomination and Governance Committee
Brief description
The Nomination and Governance Committee of the Board was constituted on August 21, 2008.
The Committee was formed mainly to ensure overall diversity of representatives and provide guidance to the Board for
appointment of top management and to address issues such as required expertise, background, leadership skills, time availability,
conflict of interest, willingness to participate actively and inter-organizational relationships of the proposed appointee as a
Director or member of the senior management.
The Board of Directors at its meeting held in April 2014 named this Committee as the Nomination and Remuneration Committee
for the purpose of provisions under the Act with respect to the terms of the Nomination and Governance Committee of the
Company covered under the statutory terms of the Nomination and Remuneration Committee.
Table 13 gives the present composition of the Nomination and Governance Committee of the Board of Directors as on
March 31, 2019.
Table 13: Composition of the Nomination and Governance Committee

Name of the Director Category

Mr. Pradeep Bhargava Chairman of the Committee and Independent Director
Dr. Anant Jhingran Independent Director
Mr. Prakash Telang Independent Director
Mr. Kiran Umrootkar Independent Director
Note: Ms. Roshini Bakshi, Mr. Sanjay Bhattacharyya and Mr. Thomas Kendra stepped down as members of the Committee
w.e.f. April 24, 2018.
The Chairman and all the members of the Committee are Independent Directors.
The Company Secretary of the Company is the Secretary of the Committee.

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The Committee is constituted with powers and responsibilities including but not limited to:
i. To develop a pool of potential director candidates for consideration in the event of a vacancy on the Board of Directors;
ii. To determine the future requirements for the Board as well as its Committees and make recommendations to the Board
for its approval;
iii. To identify, screen and review individuals qualified to serve as executive directors, non-executive directors and independent
directors;
iv. To provide its recommendation to the Board for appointment of CEO, CXO Level Employees and Senior Management
(Effective from April 27, 2019);
v. To evaluate the current composition and governance of the Board of Directors and its Committees and make appropriate
recommendations to the Board, whenever necessary;
vi. To review the suitability for continued service as a director of each Board member when his or her term expires and when
he or she has a significant change in status such as employment change etc., and shall recommend whether or not the
director should be reappointed;
vii. To evaluate and recommend termination of membership of an individual director for cause or for other appropriate
reasons;
viii. To evaluate and make recommendations to the Board of Directors concerning the appointment of Directors to Board
Committees and the Chairman for each of the Board Committees;
ix. To recommend to the Board, candidates for nomination for re-election of Directors by the Shareholders; and any Board
vacancies which are to be filled by the Board;
x. To play a consultative role for any appointment at top management level namely, COO, CMO, CFO, President of Persistent
Systems Inc., or appointment requiring Board approval such as Company Secretary; and
xi. To carry out annual / periodic performance review of the Board of Directors individually and collectively as well as for its
various committees on behalf of / as desired by the Board of Directors.
The Nomination and Governance Committee is further empowered to:
i. To conduct or authorise studies of matters within the Committee’s scope of responsibility with full access to all books,
records, facilities and personnel of the Company;
ii. To hire legal, accounting, financial or other advisors in their best judgement;
iii. To have sole authority to retain or terminate any search firm to be used to identify Director candidates;
iv. To have sole authority to approve the search firm’s fees and other retention terms;
v. The Committee may act on its own in identifying potential candidates, inside or outside the Company or may act upon
proposals submitted by the Chairman of the Board;
vi. The Committee may consider advice and recommendations from the management, shareholders or others, as it deems
appropriate; and
The Company conducts a performance evaluation of the Independent Directors and Board as a whole by an External
Management Consultant and the findings of the evaluation are presented at the meeting. Recommendations / Results on the
performance of the Directors are then considered by the Committee before the re-appointment of a Director and measures to
increase the effectiveness of the Board are considered.
Meetings and attendance
The Nomination and Governance Committee generally meets in the first quarter of the financial year to recommend to the
Board, the Directors retiring by rotation to be reappointed at the Annual General Meeting. Apart from this, the Nomination and
Governance Committee meets as and when there is any business to be transacted which has been assigned to it.
Two meetings of the Committee were held during the financial year 2018-19.
Table 14 gives attendance record of members of the Committee at its meetings held during the financial year 2018-19.

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Table 14: Attendance at the Nomination and Governance Committee meetings held during the financial year 2018-19

Name of the Director <------------------- Nomination and Governance Committee Meeting ------------------->
April 24, 2018 January 27, 2019
Mr. Pradeep Bhargava (C) Y Y
Ms. Roshini Bakshi* N NA
Mr. Sanjay Bhattacharyya* Y NA
Dr. Anant Jhingran N N
Mr. Thomas Kendra* N NA
Mr. Prakash Telang Y Y
Mr. Kiran Umrootkar Y Y

D. Risk Management Committee

Brief description
The Risk Management Committee of the Board was constituted on April 24, 2017, even before the requirement of forming this
Committee was applicable to the Company.
Table 15 gives the composition of the Risk Management Committee of the Board of Directors as on March 31, 2019.
Table15: Composition of the Risk Management Committee

Name of the Director Category

Mr. Kiran Umrootkar Chairman of the Committee and Independent Director
Mr. Pradeep Bhargava Independent Director
Mr. Sanjay Bhattacharyya Independent Director
Mr. Sunil Sapre Executive Director and Chief Financial Officer

There was no change in the constitution of the Committee during the financial year 2018-19.
The Chairman and majority members of the Committee are Independent Directors.
The Company Secretary of the Company is the Secretary of the Committee.
Meetings and attendance
Four meetings of the Risk Management Committee were held during the financial year 2018-19.
Table 16 gives the details of the attendance of the members of the Risk Management Committee at its meetings held during
the financial year 2018-19.
Table 16: Details of the attendance at the Risk Management Committee meetings held during the financial year 2018-19

Name of the Director <--------------------- Risk Management Committee Meeting --------------------->

April 23, 2018 July 27, 2018 October 20, 2018 January 27,2019
Mr. Kiran Umrootkar (C) Y Y Y Y
Mr. Pradeep Bhargava Y Y Y Y
Mr. Sanjay Bhattacharyya Y N AVC AVC
Mr. Sunil Sapre Y Y Y Y
The Committee has the following powers and responsibilities including but not limited to
i. To review Financial and risk management policies;
ii. To review report on compliance of laws and risk management including Cybersecurity, reports issued by Statutory / Internal
Auditors (Effective from April 27, 2019); and
iii. To carry out any other function as is mentioned in the terms of the Risk Management Committee and entrusted by
the Board.

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E. Stakeholders Relationship Committee

Brief description
The Stakeholders Relationship Committee was constituted on October 4, 2007.
The Committee specifically looks into the redressal of shareholders’ and investors’ grievances such as transfer of shares,
non-receipt of Balance Sheet, non-receipt of declared dividends, etc.
The Chairman of the Committee is an Independent Director.
Table 17 gives the composition of the Stakeholders Relationship Committee of the Board of Directors as on March 31, 2019.
Table 17: Composition of the Stakeholders Relationship Committee

Name of the Director Category

Mr. Sanjay Bhattacharyya Chairman of the Committee and Independent Director
Dr. Anand Deshpande Chairman and Managing Director
Mr. Sunil Sapre Executive Director and Chief Financial Officer
Mr. Kiran Umrootkar Independent Director
There were no changes in the constitution of the Committee during the financial year 2018-19.
Mr. Amit Atre, Company Secretary of the Company is the Secretary of the Committee for the purpose of stakeholders’ related
matters.
The Committee was constituted with the powers and responsibilities including but not limited to -
i. To supervise and ensure efficient share transfers, share transmission, transposition, etc.;
ii. To approve allotment, transfer, transmission, transposition, consolidation, split, name deletion and issue of duplicate share
certificate of equity shares of the Company;
iii. To redress shareholder and depositor complaints like non-receipt of Balance Sheet, non-receipt of declared dividends, etc.;
iv. To review service standards and investor service initiatives undertaken by the Company;
v. To address all matters pertaining to Registrar and Share Transfer Agent including appointment of new Registrar and Share
Transfer Agent in place of existing one;
vi. To address all matters pertaining to Depositories for dematerialization of shares of the Company and other matters
connected therewith;
vii. To resolve the grievances of the security holders of the listed entity including complaints related to transfer / transmission
of shares, non-receipt of annual report, non-receipt of declared dividends, issue of new / duplicate certificates, general
meetings etc. (Effective from April 1, 2019);
viii. To review of measures taken for effective exercise of voting rights by shareholders (Effective from April 1, 2019);
ix. To review of adherence to the service standards adopted by the listed entity in respect of various services being rendered
by the Registrar & Share Transfer Agent (Effective from April 1, 2019); 
x. To review of the various measures and initiatives taken by the listed entity for reducing the quantum of unclaimed
dividends and ensuring timely receipt of dividend warrants/annual reports/statutory notices by the shareholders of the
company (Effective from April 1, 2019); and
xi. To attend to any other responsibility as may be entrusted by the Board within the terms of reference.
Meetings and attendance
The Committee meets at least once in every financial year. Two meetings of the Committee were held during the Financial
Year 2018-19.

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Table 18: Details of the attendance at the Stakeholders Relationship Committee meetings held during the Financial
Year 2018-19

Name of the Director <------------ Stakeholders Relationship Committee Meeting ------------>

April 23, 2018 October 20, 2018

Mr. Sanjay Bhattacharyya (C) Y AVC
Dr. Anand Deshpande Y Y
Mr. Kiran Umrootkar Y Y
Mr. Sunil Sapre Y Y

Investors’ Grievances
During the financial year ended March 31, 2019, the Company has attended to investors’ grievances expeditiously. The details of
the requests / complaints received and disposed of during the year are as under in Table 19:

Sr. No. Nature of Request / Complaint Opening Balance Received Attended Pending
1. Change of Address 0 0 0 0
2. Bank Details / Bank Mandate / 0 13 13 0
Electronic clearing Services
3. Revalidation of Dividend warrants 0 24 24 0
4. KYC updation as per SEBI circular 0 1 1 0
5. Non-receipt of Dividend 0 0 0 0
6. Non-receipt of Bonus 0 0 0 0
7. SCORES (Non-receipt of Bonus) 0 0 0 0
8. IPO Unclaimed Cases 0 0 0 0
9. Others 0 1 1 0
As on March 31, 2019 there were no outstanding Investor Complaints.
The Members may contact the Company Secretary of the Company for their queries, if any, at the contact details
provided in the Shareholders’ Information in this report and are also available on the Company Website at
https://www.persistent.com/investors/investor-connect/
Web-based Query Redressal System
In order to help Members of the Company to raise their share related queries and get them resolved expeditiously, the facility
for raising their queries / complaints is made available on the Company’s website under ‘Investor Services’ section voluntarily
at http://investors.persistent.com/investor-complaints.
F. Corporate Social Responsibility (CSR) Committee
Brief description
In terms of Section 135 of the Act, the Board of Directors at its meeting concluded on April 19, 2014, constituted the Corporate
Social Responsibility Committee. The Committee was reconstituted during the financial year 2018-19 by inducting Prof. Deepak
Phatak, Independent Director.
The Chairman of the Committee is an Independent Director.
Table 20 gives the composition of the CSR Committee of the Board of Directors as on March 31, 2019.
Table 20: Composition of the CSR Committee

Name of the Director Category

Mr. Pradeep Bhargava Chairman of the Committee and Independent Director
Dr. Anand Deshpande Chairman and Managing Director
Prof. Deepak Phatak* Independent Director
Mr. Prakash Telang Independent Director
*Appointed as Member of the Committee w.e.f. April 24, 2018

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The Committee is constituted with powers and responsibilities including but not limited to:
i. To formulate and recommend to the Board a CSR Policy which will define the focus areas and indicate the activities to be
undertaken by the Company under CSR domain;
ii. To recommend to the Board necessary amendments, if any, in the CSR Policy from time to time;
iii. To monitor the budget under the CSR activities of the Company; and
iv. To accomplish the various CSR projects of the Company independently or through ‘Persistent Foundation’ and / or any
other eligible NGO / Social Institute, as the case may be.
Further, the CSR Committee is empowered to do the following:
i. To seek information from any employee as considered necessary;
ii. To obtain outside legal professional advice as considered necessary;
iii. To secure attendance of outsiders with relevant expertise; and
iv. To investigate any activity within terms of reference.
Meetings
The meeting of the Committee was held on April 23, 2018 to review the CSR activities of the Company conducted during the
financial year 2018-19. As per the provisions of the Act, the Company was required to spend towards CSR activities at least
2% of the average net profits of the Company during the three immediately preceding financial years which amounted to
` 80.01 Million. The Company has actually spent INR 80.42 Million by way of donations to various eligible institutions and has
complied with the provisions of the Act. Thus, the Company is amongst the few corporates which have overspent on CSR during
financial year 2018-19.
Table 21 gives details of attendance at the CSR Committee Meeting held during the financial year 2018-19.
Table 21: Details of the attendance at the CSR Committee meeting during the financial year 2018-19

Name of the Director CSR Committee Meeting

April 24, 2018
Mr. Pradeep Bhargava (C) Y
Dr. Anand Deshpande Y
Prof. Deepak Phatak* NA
Mr. Prakash Telang N
*Appointed as Member of the Committee w.e.f. April 24, 2018
G. Executive Committee
Brief description
The Executive Committee of the Board was constituted on January 29, 2005.
The Executive Committee was constituted to review the implementation of decisions taken by the Board of Directors in between
two Board meetings. The Chairman of the Committee is an Independent Director.
Table 22 gives the composition of the Executive Committee of the Board of Directors as on March 31, 2019.
Table 22: Composition of the Executive Committee

Name of the Director Category

Mr. Kiran Umrootkar Chairman of the Committee and Independent Director
Ms. Roshini Bakshi Independent Director
Mr. Pradeep Bhargava Independent Director
Mr. Prakash Telang Independent Director
Mr. Sunil Sapre Executive Director and Chief Financial Officer

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There were no changes in the constitution of the Committee during the financial year 2018-19. The Committee is constituted
with powers and responsibilities including but not limited to:
i. To review and follow up on the action taken on the Board decisions;
ii. To review the operations of the Company in general;
iii. To review the systems followed by the Company;
iv. To examine proposal for investment in real estate;
v. To review, propose and monitor annual budget including additional budget, if any, subject to the ratification of the Board;
vi. To review capital expenditure against the budget;
vii. To authorise opening and closing of bank accounts;
viii. To authorise additions / deletions to the signatories pertaining to banking transactions;
ix. To approve investment of surplus funds for an amount not exceeding ` 25 Crores as per the policy approved by the Board;
x. To approve transactions relating to foreign exchange exposure including but not limited to forward cover and derivative
products;
xi. To approve donations as per the policy approved by the Board;
xii. To delegate authority to the Company officials to represent the Company at various courts, government authorities and
so on; and
xiii. To attend to any other responsibility as may be entrusted by the Board to investigate any activity within terms of reference.
Further, the Executive Committee is empowered to do the following:
a. To seek information from any employee as considered necessary;
b. To obtain outside legal professional advice as considered necessary;
c. To secure attendance of outsiders with relevant expertise; and
d. To investigate any activity within terms of reference.
Meetings and attendance
The Executive Committee meets generally between two board meetings. Four meetings of the Executive Committee were held
during the financial year 2018-19.
Table 23 gives the details of the attendance of the members of the Executive Committee at its meetings held during the
financial year 2018-19.
Table 23: Details of the attendance at the Executive Committee meetings during the financial year 2018-19

Name of the Director <------------- Executive Committee Meeting ------------->

June 2, 2018 September 18, November 28, February 21,
2018 2018 2019
Mr. Kiran Umrootkar (C) Y Y Y Y
Mr. Pradeep Bhargava Y Y Y Y
Ms. Roshini Bakshi AVC AVC AVC AVC
Mr. Sunil Sapre Y Y Y Y
Mr. Prakash Telang Y N Y Y
H. Buyback Committee:
The Board, at its meeting held on January 27, 2019, constituted the Buyback Committee for a limited purpose of monitoring
and execution of current buyback process.
Table 24 gives the composition of the Buyback Committee of the Board of Directors as on March 31, 2019.

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Table 24: Composition of the Buyback Committee

Name of the Director Category

Dr. Anand Deshpande Chairman and Managing Director and Chairman of the Committee
Mr. Kiran Umrootkar Independent Director
Mr. Sunil Sapre Executive Director and Chief Financial Officer
Mr. Saurabh Dwivedi Deputy General Manager - Corporate Development
Mr. Amit Atre Company Secretary
Company Secretary acts as the Secretary to the Buyback Committee.
The Committee is constituted with powers and responsibilities including but not limited to:
i. appointment of intermediaries for the Buyback including but not limited to brokers, registrar, advertising agency, escrow
bank, and other advisors, depository participant, printers, consultants, representatives or any other subject matter
experts; if any, and settlement of terms of appointment including the remuneration for all such intermediaries/ agencies/
persons, including by the payment of commission, brokerage, fee, charges etc. and enter into agreements/ letters in
respect thereof;
ii. finalizing the terms and timeline of the Buyback including but not limited to the aggregate amount to be utilized for the
Buyback (subject to the Maximum Buyback Size), price (subject to the Maximum Buyback Price) and number of Equity
Shares to be bought back within the statutory limits, the mechanism for the Buyback, the timeframe for completing the
Buyback and appointing the designated stock exchange;
iii. to enter into escrow arrangements as may be required in terms of the Buyback Regulations;
iv. opening, operation and closure of all necessary accounts, including bank accounts (including escrow account and demat
escrow account), depository accounts for the purpose of payment and authorizing persons to operate the said accounts;
v. preparation, finalizing, signing and filing of public announcement, certificates for declaration of solvency and any other
material in relation with the Buyback with the SEBI, ROC, the stock exchanges and other appropriate authority;
vi. making all applications to the appropriate authority for their requisite approvals including approvals as may be required
from the Reserve Bank of India under the Foreign Exchange Management Act, 1999 and the rules and regulations framed
there under, if any;
vii. earmarking and making arrangements for adequate sources of funds for the purpose of the Buyback;
viii. extinguishment of dematerialized shares and physical destruction of share certificates and filing of certificates of
extinguishment required to be filed in connection with the Buyback on behalf of the Company and/ or the Board, as
required under applicable law;
ix. to affix the Common Seal of the Company on relevant documents required to be executed for the buyback of shares in
accordance with the provisions of the Articles of Association of the Company;
x. sign, execute and deliver such other documents, deeds and writings and to do all such acts, matters and things as it
may, in its absolute discretion deem necessary, expedient or proper, to be in the best interest of the shareholders for the
implementation of the Buyback, and to initiate all necessary actions for preparation and issue of various documents and
such other undertakings, agreements, papers, documents and correspondence as may be necessary for the implementation
of the Buyback to the SEBI, RBI, ROC, stock exchanges, depositories and/or other Appropriate Authorities;
xi. obtaining all necessary certificates and reports from Statutory Auditors and other third parties as required under
applicable law;
xii. dealing with stock exchanges (including their clearing corporations), where the Equity Shares of the Company are listed,
and to sign, execute, and deliver such documents as may be necessary or desirable in connection with implementing the
Buyback;
xiii. to delegate all or any of the authorities conferred on them to any Director(s)/ Officer(s)/ Authorized Signatory(ies)/
Representative(ies) of the Company, in order to give effect to the resolutions and to revoke and substitute such delegation
/ sub-delegation of authority from time to time;
xiv. to give such directions as may be necessary or desirable and to settle any questions or difficulties whatsoever that may
arise in relation to the Buyback; and

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xv. to settle and resolve any queries or difficulties raised by SEBI, stock exchanges, ROC and any other authorities whatsoever
in connection to any matter incidental to and ancillary to the Buyback.
During the year under report, no meeting was held of the Committee.

3. Performance Evaluation of the Board, its Committees and Directors

The Company conducted the annual performance evaluation of the Board, its various committees, Chairman of the board and
directors individually. This was conducted in March and April 2019 by an external management consultant and the findings of
the evaluation were presented at the meeting of the Nomination and Governance Committee and the Board of Directors. The
details of the previous year’s observations and the actions taken thereon are included in the Report of the Directors.
4. Subsidiary Companies
The Company does not have any material non-listed Indian Subsidiary Company, whose turnover or net worth (paid-up capital
and free reserves) exceeds 20% of the consolidated turnover or net worth of the Company.
Further, the Audit Committee and the Board of Directors review the consolidated financial statements of the Company and its
subsidiary companies on a quarterly basis.
The Audit Committee and the Board of Directors look into the related party transactions entered into by the Company including
those with the subsidiary companies.
Details of percentage holding of the Company in the subsidiary companies as on March 31, 2019:

Name of the Subsidiary Company Registered in Holding percentage

Persistent Systems Inc. (PSI) U.S.A 100%
Persistent Telecom Solutions Inc. U.S.A (100% subsidiary of PSI – Step down subsidiary of
the Company)
Herald Technologies Inc.* U.S.A (100% subsidiary of PSI – Step down subsidiary of
the Company)
Persistent Systems Pte. Ltd. Singapore 100%
Persistent Systems France S.A.S. France 100%
Persistent Systems Malaysia Sdn. Bhd. Malaysia 100%
Persistent Systems Germany GmbH Germany 100%
Aepona Holdings Limited (Under liquidation) Ireland (100% subsidiary of PSI – Step down subsidiary of
the Company)
Aepona Group Limited Ireland (100% subsidiary of Aepona Holdings Limited –
Step down subsidiary of the Company)
Valista Limited (Under liquidation) Ireland (100% subsidiary of Aepona Group Limited – Step
down subsidiary of the Company)
Aepona Limited U.K (100% subsidiary of Aepona Group Limited –
Step down subsidiary of the Company)
Persistent Systems Lanka (Private) Limited (Formerly Sri Lanka (100% subsidiary of Valista Limited –
known as Aepona Software (Private) Limited) Step down subsidiary of the Company)
Persistent Systems Israel Ltd. Israel (100% subsidiary of PSI – Step down subsidiary of
the Company)
Persistent Systems Mexico S.A. de C.V. Mexico (100% subsidiary of PSI – Step down subsidiary of
the Company)
PARX Werks AG Switzerland (100% subsidiary of Persistent Systems Germany
GmbH – Step down subsidiary of the Company)
PARX Consulting GmbH Germany (100% subsidiary of PARX Werks AG – Step down
subsidiary of the Company)
*Acquired during the financial year 2018-19
Note: Akshat Corporation (dba R-Gen Solutions), a 100% subsidiary of PSI – Step down subsidiary of the Company was dissolved
on December 21, 2018.

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5. General meeting details

A. The details of the last three years Annual General Meetings are as follows:

Financial Year Date Time Venue

2015-16 July 22, 2016
Persistent Systems Limited, Dewang Mehta Auditorium, Bhageerath,
2016-17 July 20, 2017 11.00 a.m.
402 Senapati Bapat Road, Pune 411 016
2017-18 July 27, 2018

B. The following Special Resolutions were passed by the Members during the last 3 (Three) Annual General Meetings:

Date of AGM No Details of Special Resolution

July 22, 2016 i. To appoint a Director in place of Mr. Mritunjay Kumar Singh (DIN: 06864030), Executive Director, who
retires by rotation and has confirmed his eligibility and willingness to accept office, if re-appointed
ii. To appoint Mr. Thomas Kendra (DIN: 07406678) as an Independent Director of the Company to hold
office for 5 (Five) consecutive years i.e. upto January 21, 2021
July 20, 2017 i. To note and approve the change in designation of Mr. Thomas (Tom) Kendra (DIN: 07406678) from
‘Independent Director’ to ‘Non-Executive Non-Independent Director’ of the Company
ii. To consider and approve amendment to the Memorandum of Association of the Company
iii. To approve Persistent Systems Limited – Employee Stock Option Plan 2017
iv. To approve grant of employee stock options to the employees of subsidiary companies of the
Company under Persistent Systems Limited – Employee Stock Option
v. To approve acquisition of shares from secondary market through Trust route for the implementation
of Persistent Systems Limited – Employee Stock Option Plan 2017
vi. To make a provision of money by the Company for purchase of its own shares by the Trust for the
benefit of employees under Persistent Systems Limited – Employee Stock Option Plan 2017
July 27, 2018 i. To appoint Dr. Anant Deep Jhingran (DIN: 05116722) as an Independent Director of the Company, not
liable to retire by rotation, to hold office for 5 (Five) consecutive years i.e. up to November 20, 2022
ii. To appoint Prof. Deepak B. Phatak (DIN: 00046205) as an Independent Director of the Company,
not liable to retire by rotation, to hold office for 5 (Five) consecutive years i.e. up to April 23, 2023
iii. To appoint Mr. Guy Eiferman (DIN: 08101854) as an Independent Director of the Company, not liable
to retire by rotation, to hold office for 5 (Five) consecutive years i.e. up to April 23, 2023
iv. To appoint Mr. Sunil Sapre (DIN: 06475949) as an Executive Director of the Company, liable to retire
by rotation to hold office for 3 (Three) consecutive years i.e. up to January 26, 2021

6. Resolution passed by Postal Ballot:

During the financial year 2018-19, there was no resolution passed by Postal Ballot.

7. Disclosures
A. Code of conduct
The Company obtains the affirmation compliance of the Code of Conduct from its Directors and Senior Management on a yearly
basis since financial year 2005-06. However, the Company has made the Code of Conduct applicable to all its employees during
financial year 2018-19.
The Code of Conduct is an annual declaration that helps to maintain high standards of ethical business conduct for the Company.
In terms of the Code of Conduct, Directors and Employees must act within the boundaries of the authority conferred upon them
and with a duty to make and enact informed decisions and policies in the best interests of the Company and its shareholders
and stakeholders. Further, Directors and Employees should ensure that they do not derive any undue personal benefit because
of their position in the Company and/or certain confidential information coming to their knowledge.
The Company has obtained declaration from Directors and Employees affirming their compliance to the Code of Conduct for
the current year. The Chairman has affirmed to the Board of Directors that this Code of Conduct has been complied with by
the Board members and Employees and a declaration to this effect forms part of this report. The Code of Conduct is uploaded
on the website of the Company at https://www.persistent.com/ethical-practices-at-persistent-systems/code-of-conduct-for-
directors-and-employees/

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B. Familiarization Program for the Board of Directors

Pursuant to the requirements of Regulation 25(7) of Listing Regulations, the Company conducts the Familiarization Program
for Independent Directors as well as other Directors on the Board about their roles, rights, responsibilities in the Company,
nature of the industry in which the company operates, business model of the Company, etc., through various initiatives. The
Company also shares the organizational structure and operations on a regular basis. The Company has been following these
principles since past. A few initiatives under familiarization program are elaborated at https://www.persistent.com/investors/
familiarization-programme/
C. Whistle Blower Policy
The Board of Directors of the Company has adopted a Whistle Blower Policy for its employees and even for the non-employee
stakeholders for India as well as global locations. The employees are encouraged to report to the Whistle Blower Administrator,
any fraudulent financial or other information to the stakeholders, any conduct that results in the instances of unethical behavior,
actual or suspected violation of the Company’s Code of Conduct and the Ethics Policy, which may come to their knowledge. The
Board of Directors has appointed the Chairman of the Audit Committee as the Whistle Blower Administrator.
This policy provides for adequate safeguards against victimization of employees who report to the Whistle Blower Administrator.
The policy also provides for direct access to the Chairman of the Audit Committee. The Whistle Blower Policy is uploaded on the
website of the Company at https://www.persistent.com/ethical-practices-at-persistent-systems/whistle-blower-policy/
D. Complaints pertaining to sexual harassment
The details of complaints filed, disposed of and pending during the financial year pertaining to sexual harassment are provided
in the Report of the Directors.
E. Policy on Material Subsidiary
In terms of Regulation 16 of SEBI Listing Regulations, the Policy on Material Subsidiary is framed to determine the Material
Subsidiaries of the Company and to provide the governance framework for such subsidiaries. The policy to determine the
Material Subsidiaries of the Company is uploaded at https://www.persistent.com/investors/policy-on-material-subsidiary/
F. Disclosures on material significant related party transactions that may have potential conflict with the interests of
the Company
During the financial year 2018-19, there were no material significant transactions, pecuniary transactions or relationships
between the Company and the Promoters, Directors and their relatives and the management that has potential conflict of
interest of the Company.
Details of all transactions entered into by the Company with the related parties have been disclosed under “Related Party
Transactions” in the Notes to Accounts of the Company which form part of this Annual Report. A policy determining the
Related Party Transactions is uploaded on the website of the Company at https://www.persistent.com/investors/related-party-
transactions-policy/
G. Risk management and internal control policies adopted by the Company
The report on Risk Management and Internal Control Policies adopted by the Company forms separate part of this
Annual Report.
H. Adherence to accounting standards
The Company follows the mandatory Accounting Standards prescribed by the Institute of Chartered Accountants of India (ICAI)
and to the best of its knowledge, there are no deviations in the accounting treatments that require specific disclosure.
I. Implementation of Compliance Tool
The Company has implemented the Compliance Tool to report and track the domestic compliances since September 2016.
The Company has also implemented Compliance Tool to report and track the compliances of it 11 major global locations since
April 2018. These tools are used to records and report the compliances as and when they are due. A detailed report derived
from the said tool is placed before the Board and Audit Committee during their quarterly meetings.
J. Data Protection Initiatives
Global Data Protection Regulation (“GDPR”) is Europe’s new framework for data protection which came into force in May 2018.
The purpose of GDPR is not only to harmonize data privacy laws across Europe but also to give greater protection and rights
to individuals. Applicability of GDPR is not restricted to the European residents or citizens. However, GDPR applies globally and
companies outside Europe are also required to comply with GDPR if they possess or process European persons’ personal data.

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Your Company respects the privacy and choices of an individuals and is committed to protect the data it processes which
may be a data of employees, data of clients or other stakeholders from European Union. Your Company designs all policies,
procedures and systems that follow Privacy by Design principles. Your Company has assessed alignment of its processes and
policies with respect to GDPR requirements through an external subject matter expert and has taken concrete steps to protect
rights of individuals under GDPR.
K. Details of non-compliance
Details of non-compliance by the Company, penalties and strictures imposed on the Company by stock exchanges, SEBI or any
statutory authority, on any matter related to the capital markets, during the year from April 1, 2018 to March 31, 2019 – NIL.
The Company has complied and disclosed all the mandatory requirements under the Listing Regulations.
L. Remuneration to the Directors of the Company
Information relating to the remuneration to the Directors during the financial year 2018-19 has been provided under the details
of the Compensation and Remuneration Committee under this report.
8. Management Discussion and Analysis
As required by Regulation 34(2)(e) of Listing Regulations, the Management Discussion and Analysis is provided elsewhere in
the Annual Report.
9. Corporate Social Responsibility Report
A Report on the Corporate Social Responsibility (CSR) Initiatives of the Company has been provided elsewhere in the
Annual Report.
10. Shareholders’ Information
A. Means of Communication
The Company constantly communicates to the institutional investors about the operations and financial results of the Company.
Besides publishing the abridged financial results in one national and one regional daily newspaper respectively, as per
Regulation 46 of the Listing Regulations, the complete audited financial statements are published on the Company’s website
(www.persistent.com) at https://www.persistent.com/investors/quarterly-results/ under ‘Investors’ section. The transcripts of
call with analysts are also available on the Company’s website.
The Company uses a wide array of communication tools including face-to-face, online and offline channels to ensure that
information reaches all the stakeholders in their preferred medium.
The table below gives the snapshot of the communication channels used by the Company to communicate with its stakeholders:

Particulars Board Shareholders Formal Website Press / Web E-mails Annual Newspaper
Meetings Meetings Notices Information Release Reports
Board of Directors √ √ √ √ √ √ √ √
Shareholders - √ √ √ √ - √ √
Employees - - - √ √ √ √ √
Financial Analysts - - - √ √ √ √ √
General Public - - - √ √ - - √
Frequency Quarterly Annually Ongoing Ongoing Ongoing Ongoing Ongoing Ongoing

Details of newspapers where Quarterly Results of the Company were published:

Publication of Financial Results in Newspapers

Publication of the Financial June 30, 2018 September 30, 2018 December 31, 2018 March 31, 2019
Results for the Quarter ended
English Date of Publication July 29, 2018 October 21, 2018 January 28, 2019 April 29, 2019
Newspapers The Financial Express The Financial Express The Financial Express The Financial Express
(All India editions) (All India editions) (All India editions) (All India editions)
Marathi Date of Publication July 29, 2018 October 21, 2018 January 28, 2019 April 29, 2019
Newspapers Loksatta (Pune edition) Loksatta (Pune edition) Loksatta (Pune edition) Loksatta (Pune edition)

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B. Corporate Identity Number (CIN)

The Corporate Identity Number (CIN), allotted by the Ministry of Corporate Affairs, Government of India is
‘L72300PN1990PLC056696’. The Company is registered in the State of Maharashtra, India.
C. General details of the Company
i. Registered Office
Bhageerath, 402 Senapati Bapat Road, Pune 411 016, India.
ii. Financial year of the Company is from 1st April of every year to 31st of March next year.
iii. Forthcoming Annual General Meeting of the Company
The forthcoming Annual General Meeting of the Company will be held on Wednesday, July 24, 2019 at Persistent Systems
Limited, Dewang Mehta Auditorium, Bhageerath, 402 Senapati Bapat Road, Pune 411 016 at 1100 hrs. (IST).
iv. Book Closure dates: From Monday, July 15, 2019 to Wednesday, July 24, 2019 (Both days inclusive)
v. Company Secretary and Compliance Officer of the Company
Mr. Amit Atre
ICSI Memebership No. A20507
Bhageerath, 402 Senapati Bapat Road, Pune 411 016, India.
Tel.: +91 (20) 6703 0000 Fax :+91 (20) 6703 0009
E-mail: [email protected] / [email protected]
Website: www.persistent.com
The Members may communicate investor complaints to the Company Secretary on the above-mentioned co-ordinates.
vi. Dividend payment date
The Company had declared the first Interim Dividend of ` 8 per equity share at its Board meeting held in
January 2019 for the financial year 2018-19 to those members whose names were appearing in the Register of Members on
February 5, 2019.
Payment of dividend through Electronic mode:
Securities and Exchange Board of India (SEBI) has vide Circular No. CIR/MRD/DP/10/2013 dated March 21, 2013 directed
that Listed Companies shall mandatorily make all payments to Investors, including Dividend to shareholders, by using any
Reserve Bank of India (RBI) approved electronic mode of payments viz. ECS, LECS (Local ECS), RECS (Regional ECS), NECS
(National ECS), NEFT etc.
1. The Company will use the bank details available with Depository Participant for electronic credit of Dividend.
2. In order to receive the dividend without loss of time, all the eligible shareholders holding shares in demat mode
were requested to update with their respective Depository Participants their correct Bank Account Number,
including 9 digit MICR Code and 11 digit IFSC Code, E-mail ID and mobile no(s).
Shareholders holding shares in physical form may communicate details relating to their Bank Account, 9 digit MICR
Code and 11 digit IFSC Code, E-mail ID and mobile no(s) to the Registrar and Share Transfer Agents viz. Link Intime
India Private Limited, having address at Block No. 202, Second Floor, Akshay Complex, Off Dhole Patil Road, Pune 411
001, by quoting the reference folio number and attaching a photocopy of the Cheque leaf of their Active Bank account
and a self-attested copy of their PAN card.
In terms of the recent SEBI Notification dated April 20, 2018 in case dividend payment by electronic mode is returned
or rejected by the corresponding bank due to certain reasons, the shareholders are required to connect their bank
account with the Demat Account. The Company will then process online transfer of unclaimed Dividend to the
respective Bank Account of the shareholders.
vii. Unclaimed Dividend
 ccording to the provisions of the Act, the amount in the dividend account remaining unclaimed for a period of 7 (Seven)
A
years from the date of its disbursement, has to be transferred to the Investor Education and Protection Fund (IEPF)
maintained by the Government of India.

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Following are the details of the unclaimed dividend. If not claimed within the period of 7 (Seven) years then the same will be
transferred to the in accordance with the schedule given below:

Financial Date of Total Dividend Unclaimed Due date for transfer of Percentage
Year declaration of (In `) Dividend as on unclaimed dividend to of unclaimed
dividend and type March 31, 2019 Investor Education and dividend over
of dividend (In `) Protection Fund (IEPF) Total Dividend
2018-19 January 2019 - 640,000,000 169,304 March 1, 2026 0.0265
Interim
2017-18 July 2018 - Final 240,000,000 140,421 August 31, 2025 0.0585
2017-18 January 2018 – 560,000,000 240,611 March 4, 2025 0.0430
Interim
2016-17 July 2017 – 240,000,000 126,573 August 23, 2024 0.0527
Final
2016-17 January 2017 – 480,000,000 254,874 February 26, 2024 0.0531
Interim
2015-16 March 2016 – 2nd 240,000,000 98,352 April 13, 2023 0.0410
Interim
2015-16 January 2016 - 400,000,000 189,185 February 28, 2023 0.0473
Interim
2014-15 July 2015 – Final 400,000,000 148,960 August 29, 2022 0.0372
2014-15 January 2015 – 400,000,000 341,800 March 1, 2022 0.0855
Interim
2013-14 July 2014 – 160,000,000 285,636 August 30, 2021 0.1785
Final
2013-14 January 2014 – 320,000,000 102,536 March 2, 2021 0.0320
Interim
2012-13 July 2013 – Final 120,000,000 33,774 September 3, 2020 0.0282
2012-13 January 2013 – 240,000,000 74,610 March 4, 2020 0.0311
Interim
2011-12 July 2012 – 100,000,000 35,775 August 24, 2019 0.0358
Final
Total 4,540,000,000 2,242,411 0.0494

During the year, the Company voluntarily approached the shareholders to help them claim their dividend lying unpaid in
the Unclaimed Dividend Account. The table below shows details of unclaimed dividend at the beginning dividend at the end
of the year:

Sr. No. Particulars As on March 31, 2018 As on March 31, 2019

i. Total Dividend Declared 3,860,000,000 4,540,000,000
ii. Unclaimed Dividend 1,412,666 2,242,411
During the year under report, the Company has transferred the unclaimed and unpaid dividend of ` 97,407 (incl. rounded-up
and interest amount) to the IEPF Authority. Further, 69 corresponding shares on which the dividend was unclaimed for seven
consecutive years was transferred as per the requirement of the IEPF Rules.
The Company Secretary of the Company has been appointed as the Nodal Officer for purpose of IEPF matters.
viii. Name of Stock Exchanges where the Company has been listed
The Equity Shares of the Company have been listed on the following stock exchanges since April 6, 2010:

Stock Exchange Name and Address Script Symbol / Code

BSE Limited (BSE) 533179
14th Floor, P. J. Towers, Dalal Street, Mumbai 400 001
National Stock Exchange of India Limited (NSE) PERSISTENT
Exchange Plaza, Bandra Kurla Complex, Bandra (E), Mumbai 400 051
Listing fees for the financial year 2018-19 have been paid to both BSE and NSE. The ISIN of the Company for its shares is
INE262H01013.
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ix. Contact details of Company’s intermediaries are as follows:

Registrar and Share Transfer Agent
Link Intime India Private Limited
(Unit – Persistent Systems Limited)
CIN: U67190MH1999PTC118368
Contact Person: Mr. Sandip Pawar
Block No. 202, Second Floor,
Akshay Complex, Off Dhole Patil Road,
Pune 411 001
Tel.: +91 (20) 2616 0084, 2616 1629, 2616 3503
E-mail : [email protected] • Website: www.linkintime.co.in

Depositories of the Company

i. National Securities Depository Limited
4th Floor, ‘A’ Wing, Trade World
Kamala Mills Compound, Senapati Bapat Marg,
Lower Parel, Mumbai 400 013, India.
Tel.: +91 (22) 2499 4200 • Fax : +91 (22) 2497 6351
E-mail : [email protected] • Website : www.nsdl.co.in
ii. Central Depository Services (India) Limited
Marathon Futurex, A-Wing,
25th floor, N. M. Joshi Marg,
Lower Parel, Mumbai 400013
Phone: +91 (22) 2302 3333 • Fax: +91 (22) 2300 2035/2036
E-mail : [email protected] • Website : www.cdslindia.com
x. Details of bonus shares issued / sub-division of shares since inception are as follows:

Financial Year 1996-97 2002-03 2007-08 2014-15

Bonus Issue 15:1 9:1 5:2 1:1
In the financial year 2002-03, one equity share of ` 100 was sub-divided into ` 10 fully paid equity shares of ` 10 each.
xi. Legal Proceedings
There are no cases related to disputes over title to shares in which the Company was made a party.
xii. Dematerialisation of shares and liquidity
The Company’s Equity Shares have been dematerialised with the Central Depository Services (India) Limited (CDSL) and the
National Securities Depository Limited (NSDL). The International Security Identification Number (ISIN) is an identification
number for traded shares. This number is to be quoted in each transaction relating to the dematerialised shares of the Company.
The ISIN of the Company for its shares is mentioned above.
As on March 31, 2019, 79,264,216 Equity Shares comprising 99.54% of the Company’s shares are held in dematerialised form.
Also, during the financial year 2018-19, the Company has made an appeal to the shareholders who are holding shares in physical
mode for converting their shares into the dematerialisation mode to comply with the SEBI guidelines.
xiii. Share Transfer System
The Company has the Stakeholders Relationship Committee represented by the Board of Directors to examine and redress
shareholders and investors complaints. The status on share transfers is reported to the Board of Directors on a regular basis.
The process and approval of share transfer has been delegated to the Stakeholders Relationship Committee of the Board
of Directors. For shares transmitted in physical form, the Committee gives adequate notice to the seller before registering
the transfer of shares. The Committee approves the share transfers and reports the same to the Board of Directors at its
next meeting. For matters regarding shares transmitted in physical form, share certificates, dividends, change of address,
etc., shareholders should communicate with M/s. Link Intime India Private Limited. The address is given in the section on
shareholder information under this report.

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For shares transferred in electronic form, after confirmation of sale/purchase transaction from the broker, shareholders should
approach the depository participant with a request to debit or credit the account for the transaction. The depository participant
will immediately arrange to complete the transaction by updating the account. There is no need for separate communication
to register the share transfer.
xiv. Distribution of shareholding as on March 31, 2019

Shareholding of Shareholders Percentage% Nominal value of Percentage holding

nominal value Equity Shares (in `)
1 – 5000 53,006 94.1894 34,206,930 4.2957
5001 - 10000 1,429 2.5393 10,674,580 1.3405
10001 – 20000 672 1.1941 9,964,260 1.2513
20001 – 30000 272 0.4833 6,798,610 0.8538
30001 – 40000 150 0.2665 5,320,090 0.6681
40001 – 50000 104 0.1848 4,730,860 0.5941
50001 – 100000 232 0.4123 16,858,920 2.1171
100001 and above 411 0.7303 707,757,240 88.8794
Total 56,276 100 796,311,490 100

xv. Shareholding pattern as on March 31, 2019

Sr. Category of Shareholders No. of No. of Equity Nominal Value Percentage

No Shareholders Shares of Equity Shares holding
(in `)
1. Promoters 2 22,846,340 228,463,400 28.69
2. Promoters Group 6 1,530,825 15,308,250 1.92
3. Institutions
a. Mutual Funds 12 14,560,052 145,600,520 18.28
b. Financial Institutions / Banks 6 1,253,860 12,538,600 1.57
c. Foreign Portfolio Investors 172 16,647,012 166,470,120 20.91
(Corporate)
d. Foreign Venture Capital
Investors
e. Foreign Company 1 366,862 3,668,620 0.46
f. Foreign National 4 17,300 173,000 0.02
g. Alternate Investment Funds 6 1,621,901 16,219,010 2.04
h. Central Government
4. Non – institutions
a. Bodies Corporate 500 3,128,232 31,282,320 3.93
b. Individuals 50,898 13,961,129 139,611,290 17.53
c. Any other
i. NRI 1,848 1,140,301 11,403,010 1.42
ii. Trust 8 2,140,527 21,405,270 2.69
iii. Directors / Relatives 5 56200 56200 0.08
iv. Clearing Members 120 60,769 607,690 0.08
v. Hindu Undivided Families 1436 251,727 2,517,270 0.32
vi. IEPF 1 506 5,060 0.00
vii. NBFC 10 47,606 476,060 0.06
Total 55,035 79,631,149 796,311,490 100

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xvi. Shareholders (other than Promoters) holding more than 1% of the share capital as on March 31, 2019

Sr. Name of Shareholder No. of Shares Percentage holding

No
1 HDFC Trustee Company LTD. - A/C HDFC Capital Builder Value Fund 3,727,258 4.68
2 L&T Mutual Fund Trustee Limited - L&T Emerging Business Fund 3,387,188 4.25
3 Government Pension Fund Global 2,324,258 2.91
4 PSPL ESOP Management Trust* 2,135,409 2.68
5 Tata Mutual Fund - Tata Equity PE Fund 1,602,300 2.01
5 Letko Brosseau Emerging Markets Equity Fund 1,513,211 1.90
7 PPFAS Mutual Fund - Parag Parikh Long Term Equity Fund 1,412,592 1.77
8 ICICI Prudential Value Discovery Fund 1,347,123 1.69
9 Shridhar Bhalchandra Shukla 1,222,627 1.53
10 Ashutosh Vinayak Joshi 1,117,946 1.40
Total 19,789,912 24.85
* Shares held in the name of Trustees of PSPL ESOP Management Trust as on March 31, 2019.
xvii. Market Price Data
The equity shares of the Company were listed on the BSE Limited (BSE) and the National Stock Exchange of India Limited
(NSE) on April 6, 2010. Accordingly, the highest traded price and the lowest traded price and total volume for the period from
April 1, 2018 to March 31, 2019 on a monthly basis are as below:

Month ended <----------------- BSE -----------------> <----------------- NSE ----------------->

High (`) Low (`) Total Volume (No.) High (`) Low (`) Total Volume (No.)
Apr-18 825.00 658.00 540,695 781.00 657.00 6,939,104
May-18 866.90 759.00 254,907 868.00 756.00 4,253,472
Jun-18 843.50 732.00 349,522 845.00 733.00 2,516,971
Jul-18 880.00 792.40 682,770 874.00 790.00 4,640,729
Aug-18 890.00 811.05 400,431 889.90 810.70 4,133,892
Sep-18 915.00 772.40 246,976 915.00 771.25 4,160,383
Oct-18 785.70 540.00 387,730 787.95 536.00 7,864,788
Nov-18 610.00 532.80 208,326 610.00 532.30 4,167,327
Dec-18 641.05 590.00 115,207 642.00 590.00 3,375,810
Jan-19 643.50 537.00 744,874 695.85 591.10 8,888,388
Feb-19 673.80 592.80 252,862 675.10 561.00 4,077,586
Mar-19 693.05 625.15 160,965 644.35 538.55 3,102,647
(Source: www.bseindia.com and www.nseindia.com)
Graphical presentation of Persistent movement of Company’s stock price as compared to Nifty and Sensex from April 1, 2018
to March 31, 2019 is as follows:

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xviii. American Depository Receipts / Global Depository Receipts / Warrants

As on March 31, 2019, the Company has no American Depository Receipts / Global Depository Receipts / Warrants or any such
convertible instruments outstanding and there is no likely impact on the Company’s Equity Shares in the financial year 2018-19.
xix. Plant locations
The Company is in software business and does not require manufacturing plants. However, it has software development centers
/ offices in India and abroad. The addresses of global development centers / offices of the Company are given elsewhere in the
Annual Report.
xx. Calendar for declaring the financial statements for the quarters in the financial year 2019-20 (tentative and subject
to change)

Quarter Ending Proposed date of meeting of the Board

June 30, 2019 July 24, 2019 and July 25, 2019
September 30, 2019 October 23, 2019 and October 24, 2019
December 31, 2019 January 23, 2020 and January 24, 2020
March 31, 2020 April 23, 2020 and April 24, 2020
12. CEO / CFO certification
As required by Regulation 17(8) of Listing Regulations, the CEO / CFO certification is provided elsewhere in this Annual Report.

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 11. ESOP Schemes of the Company
The status of various ESOP schemes as on March 31, 2019 is shown in the following table:

Scheme i ii iii iv v vi vii viii ix x xi Xii Grand Total

Granted a 4,560,500 753,200 2,533,300 6,958,250 1,890,525 1,216,250 1,784,975 42,000 1,374,462 3,062,272 492,000 67,300 24,735,034
Vested b 3,221,522 477,085 16,97,216 4,705,452 1,333,722 785,750 792,455 28,000 914,710 2,206,617 69,600 52,450 16,284,579
Exercised c 3,221,504 477,082 1,538,591 4,205,679 1,270,929 785,750 757,459 28,000 772,590 2,050,967 69,600 52,450 15,230,601
Vested 18 3 1,58,625 499,773 62,793 - 34,996 - 142,120 155,650 - - 1,053,978

160 • Annual Report 2018-19

but not
d
exercised
(b - c)
Lapsed e 13,298 2 20,077 22,542 20,095 - - - - 197,592 412,800 14,850 701,256
Not Vested
f 1,325,681 276,113 816,006 2,230,256 536,708 430,500 992,520 14,000 459,752 658,063 - - 7,739,599
(a - c - d - e)
Total 18 3 158,625 499,773 62,793 - 34,996 - 142,120 155,650 - - 1,053,978
Shaping the future of software driven business

Outstanding g
(d + f )
Weighted
average
remaining Note (i) 2.40 Note (i) 3.93 Note (i) - 3.37 - 4.03 1.85 - -
contractual
life
Weighted
Average
fair value
4.69 19.55 26.12 37.38 24.64 25.06 36.97 48.21 54.74 202.70 5.00 10.00
of options
granted
(in `)
Note(i): No Contractual life is defined in the scheme
 Shaping the future of software driven business

13. Corporate Governance Handbook

The Company has proactively and voluntarily prepared the Corporate Governance Handbook encompassing set of guidelines
and policies with respect to composition of the Board of Directors and Committees of the Board, meetings of the Board of
Directors and Committees of the Board, Managerial Remuneration, Code of Conduct, Whistle Blower Policy, Risk Management
Policy, Internal Control Procedures etc., being adhered to by the Company. The Corporate Governance Handbook is updated
on an annual basis and is available on the Company website at https://www.persistent.com/investors/corporate-governance/
14. Ethics Policy
The Company has continued to proactively and voluntarily implement the Ethics Policy in the Company. The objective of this
policy is to explain guiding principles of Persistent’s Ethics Policy (for benefit of its employees and all other stakeholders like
customers, vendors and investors) and to establish a framework for its administration. The working of the Ethics Policy is
monitored by the Ethics Committee chaired by an Independent Director / Senior Officer nominated by the Board of Directors.
The policy is available on the Company website at
https://www.persistent.com/ethical-practices-at-persistent-systems/ethics-policy/
15. Fraud Risk Management Policy
The Company has continued to proactively and voluntarily implemented the Fraud Risk Management Policy in the Company.
The objective of this policy is to protect the brand, reputation and assets of the Company from loss or damage resulting
from any incidents of fraud or misconduct by employees or other stakeholders of the Company. The policy is available on the
Company website at https://www.persistent.com/investors/corporate-governance/
16. Secretarial standards
The Ministry of Corporate Affairs notified the Secretarial Standard on Meetings of the Board of Directors (SS– 1), Secretarial
Standard on General Meetings (SS–2), Secretarial Standard on Dividend (SS–3) and Secretarial Standard on Report of the Board
of Directors (SS-4). Your Company complies with the same.
The Company will comply with the other Secretarial Standards issued by the Institute of Company Secretaries of India (ICSI) as
and when they are made mandatory.
17. Corporate Governance Voluntary Guidelines, 2009
The Company follows the Corporate Governance Voluntary Guidelines, 2009 issued by the Ministry of Corporate Affairs.
18. Compliance with the discretionary requirements
The Company has also ensured the implementation of non-mandatory items such as:
• Unmodified Audit opinions/reporting
• The Head of the Internal Audit Team reporting directly to the Audit Committee
19. Particulars of total fees paid to the Statutory Auditors
Particulars of total fees paid to the Statutory Auditors form part of the note no. 39 of the Consolidated Finance Statement
provided in this Annual Report.
20. Vendor Code of Conduct
In line with the best international governance practices, the Company has prepared the Vendor Code of Conduct that is to
be executed by all the vendors prior to providing their services to the Company. This Code ensures that the vendors of the
Company are following the relevant legal and regulatory compliances applicable to them while working with the Company and
are performing the acceptable business conduct while doing business with or on behalf of the Company.
21. Best Corporate Governance practices
A. Investors Day
The Company celebrated its 9th Annual Investors Day on Friday, December 11, 2018. Annual Investor Day is a complimentary
one-day event to inform retail as well as institutional investors on the Company’s road map ahead. The Company’s future
plans, business insights are conveyed to the Investor Community as a whole for better understanding of the Company’s
business model, revenue / growth model and opportunities for the Company and the IT sector as a whole in the times to
come.

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B. Investors Website
Pursuant to the requirements of the Act and the SEBI Listing Regulations, the Company regularly updates Investor
relations website for providing all the necessary information required by the various stakeholders. Share price movement
chart/data, financials of the Company and all press releases are uploaded on the website of the Company at
https://www.persistent.com/investors/ for the easy access and analysis of the investors.
22. Other Matters
Shareholders holding shares in physical form are requested to notify to M/s. Link Intime India Private Limited, Registrar and
Share Transfer Agent about any change in their address and Bank Account details under the signature of sole / first joint
holder. Beneficial owners of shares in demat form are requested to send their instructions regarding change of name, change
of address, bank details, nomination, power of attorney, if any, etc., directly to their Depository Participants (DP) as the same
are maintained by the respective DPs.
Non-resident shareholders are requested to notify to M/s. Link Intime India Private Limited at the earliest on the following:
a. Change in their residential status on return to India for permanent establishment;
b. Particulars of their NRE Bank Account with a bank in India, if not furnished earlier; and
c. E-mail address, if any.
23. Nomination in respect of shares
Section 72 of the Act provides facility for making nominations by Members in respect of their holding of shares. Such nomination
greatly facilitates transmission of shares from the deceased Member to his / her nominee without being required to go through
the process of obtaining Succession Certificates / Probate of the Will, etc. It would therefore, be in the best interest of the
Members holding shares as a sole holder to make such nomination. Members holding shares in physical mode are advised to
write to the Registrar and Share Transfer Agent of the Company for making nomination. Members holding shares in demat form
are advised to contact their DP for making nominations. Members are further requested to quote their E-mail IDs, Telephone /
Fax numbers for prompt reply to their communication.

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Chief Executive Officer (CEO) and Chief Financial Officer (CFO) certification
We, to the best of our knowledge and belief, certify that
A. We have reviewed financial statements and the cash flow statement for the year and that:
1. these statements do not contain any materially untrue statement or omit any material fact or contain statements
that might be misleading;
2. these statements together present a true and fair view of the Company’s affairs and are in compliance with existing
accounting standards, applicable laws and regulations.
B. There are no transactions entered into by the Company during the year which are fraudulent, illegal or violative of the
Company’s Code of Conduct.
C. We accept responsibility for establishing and maintaining internal controls for financial reporting and we have evaluated
the effectiveness of internal control systems of the Company pertaining to financial reporting and have disclosed to the
auditors and the Audit Committee, deficiencies in the design or operation of such internal controls, if any, of which we are
aware and the steps we have taken or propose to take to rectify these deficiencies, and we have:
1. Designed such disclosures controls and procedures or caused such internal control over financial reporting
to be designed under our supervision to ensure that material information relating to the Company, including its
consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which
this report is being prepared.
2. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be
designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and
the preparation of financial statements for external purpose in accordance with the Generally Accepted Accounting
Principles (GAAP) in India
3. Evaluated the effectiveness of the Company’s disclosure, control and procedures.
4. Disclosed in this report, changes, if any, in the Company’s internal control over financial reporting that occurred
during the Company’s most recent fiscal year that has materially affected, or is reasonably likely to materially affect,
the Company’s internal control over financial reporting.
D. We have indicated to the Statutory Auditors and the Audit Committee:
1. significant changes in internal control over financial reporting during the year;
2. significant changes in accounting policies during the year and that the same have been disclosed in the notes to the
financial statements;
3. Instances of significant fraud of which we have become aware and the involvement therein, if any, of the management
or an employee having a significant role in the Company’s internal control system over financial reporting; and
4. Any deficiencies in the design or operation of internal controls, that could adversely affect the Company’s ability
to record, process, summarize and report financial data, and have confirmed that there have been no material
weaknesses in internal control over financial reporting including any corrective actions with regard to deficiencies.
E. We affirm that we have not denied any personnel access to the Audit Committee of the Company (in respect of matters
involving alleged misconduct) and we have provided protection to whistleblowers from unfair termination and other unfair
or prejudicial employment practices.
F. We further declare that all Board members and employees have affirmed compliance with the Code of Conduct and Ethics
for the year covered by this report.
For and on behalf of the Board of Directors

Dr. Anand Deshpande Sunil Sapre

Chairman and Managing Director Executive Director and
Pune, June 11, 2019 DIN: 00005721 Chief Financial Officer
DIN: 06475949

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Corporate Governance Compliance Certificate

To the Members of Persistent Systems Limited
We have examined all the relevant records of Persistent Systems Limited (the ‘Company’) for the year ended March 31, 2019 for
the purpose of certifying compliance of the conditions of Corporate Governance as per the relevant provisions of Securities
and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘Listing Regulations’) as
referred to in Regulation 17 to 27, Clauses (b) to (i) of Sub-Regulation (2) of Regulation 46 and Para C, D and E of Schedule V of
the Listing Regulations for the year from April 1, 2018 to March 31, 2019.
The compliance of conditions of Corporate Governance is the responsibility of the Management. Our examination was limited
to procedure and implementation process adopted by the Company for ensuring the compliance of the conditions of Corporate
Governance. The certificate is neither an assurance as to the future viability of the Company nor the efficacy or effectiveness
with which the management has conducted the affairs of the Company.
In our opinion and to the best of our information and according to the explanations given to us, we certify that the Company has
complied with all the mandatory conditions of Corporate Governance as stipulated in the said Listing Regulations, as applicable.

For SKO & Associates

Company Secretaries

Pallavi Salunke
 Partner
 FCS-5640
 C.P. No.:4453
Place: Pune
Date: May 27, 2019

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Certificate of Non-disqualification of Directors

(pursuant to Regulation 34(3) and Schedule V Para C clause (10)(i) of the SEBI
(Listing Obligations and Disclosure Requirements) Regulations, 2015)

To,
The Members of Persistent Systems Limited
Bhageerath 402 Senapati Bapat Road
Pune, Maharashtra 411 016
I/We have examined the relevant registers, records, forms, returns and disclosures received from the Directors of Persistent
Systems Limited having CIN L72300PN1990PLC056696 and having its Registered Office at Bhageerath 402 Senapati Bapat
Road Pune Maharashtra 411 016 (hereinafter referred to as ‘the Company’), produced before me/us by the Company for the
purpose of issuing this Certificate, in accordance with Regulation 34(3) read with Schedule V Para-C Sub clause 10(i) of the
Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.
In my/our opinion and to the best of my/our information and according to the verifications (including Directors Identification
Number (DIN) status at the portal www.mca.gov.in) as considered necessary and explanations furnished to me / us by the
Company & its officers, I/We hereby certify that none of the Directors on the Board of the Company as stated below for the
financial year ending on March 31, 2019 have been debarred or disqualified from being appointed or continuing as Directors of
companies by the Securities and Exchange Board of India, Ministry of Corporate Affairs, or any such other Statutory Authority.

Sr. No. Name of Director DIN Date of appointment

in the Company
1 Dr. Anand Suresh Deshpande 00005721 19-Oct-1990
2 Mr. Prakash Manjanath Telang 00012562 19-Aug-2010
3 Prof. Deepak Bhaskar Phatak 00046205 24-Apr-2018
4 Mr. Kiran Dinanath Umrootkar 00326672 19-Aug-2010
5 Mr. Pradeep Kumar Bhargava 00525234 26-Apr-2012
6 Ms. Roshini Hemant Bakshi 01832163 26-Jul-2014
7 Mr. Sanjay Kumar Bhattacharyya 01924770 12-May-2011
8 Dr. Anant Deep Jhingran 05116722 21-Nov-2017
9 Mr. Sunil Yeshwant Sapre 06475949 27-Jan-2018
10 Mr. Thomas William Kendra 07406678 22-Jan-2016
11 Mr. Guy Patrick Maurice Eiferman 08101854 24-Apr-2018

Ensuring the eligibility of for the appointment / continuity of every Director on the Board is the responsibility of the Management
of the Company. Our responsibility is to express an opinion on these based on our verification. This certificate is neither an
assurance as to the future viability of the Company nor of the efficiency or effectiveness with which the Management has
conducted the affairs of the Company.

For SKO & Associates

Company Secretaries

Pallavi Salunke
 Partner
 FCS-5640
 C.P. No.:4453
Place: Pune
Date: May 27, 2019

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Business Responsibility Report

Section A: General Information about the Company

1. Corporate Identity Number (CIN) of the Company L72300PN1990PLC056696

2. Name of the Company Persistent Systems Limited
3. Registered Office address Bhageerath, 402 Senapati Bapat Road, Pune 411 016, Maharashtra
4. Website www.persistent.com
5. E-mail ID [email protected]
6. Financial year reported April 1, 2018 to March 31, 2019
7. Sector(s) that the Company is engaged in Computer programming, consultancy and related activities (62011,
(industrial activity code-wise) 62012, 62013, 62020, 62091, 62092 and 62099)
8. List three key products / services that a. Enterprise Digital Transformation
the Company manufactures / provides b. Product engineering services and solutioning for Internet
(as in balance sheet) of Things
c. Product engineering and Professional Services for ISVs and
enterprises
d. IP Products
9. Total number of locations where business i. Number of International Locations –
activity is undertaken by the Company Sr. No. Continent Country
A. Africa South Africa
B. Asia a. Japan
b. Israel
c. Malaysia
d. Singapore
e. Sri Lanka
C. Australia Australia
D. Europe a. Scotland
b. England
c. France
d. Germany
e. Ireland
f. The Netherlands
g. Switzerland
E. North America a. Canada
b. Mexico
c. USA
ii. Number of National (India) Locations –
a. Pune, Maharashtra
b. Nagpur, Maharashtra
c. Hyderabad, Telangana
d. Bengaluru, Karnataka
e. Verna, Goa
10. Markets served by the Company Company provides its services in India as well as abroad

Section B: Financial Details of the Company as on March 31, 2019 (Audited Financials)

1. Paid up Capital (INR) ` 791.19 Million (Refer Note below)

2. Total Turnover (Standalone) (INR) ` 19,598.67 Million
3. Total profit after taxes (Standalone) (INR) ` 3,150.08 Million
4. Total Spending on Corporate Social Responsibility 2.55% (` 80.36 Million)
(CSR) as percentage of profit after tax (%)
5. List of activities in which expenditure in (4) above a. Health
has been incurred b. Education
c. Community Development
d. Assistance in natural calamities (Kerala Floods)
Note: The buyback of equity shares through the stock exchanges commenced on February 8, 2019. During the period from
February 8, 2019 to March 31, 2019, 881,098 Equity Shares were purchased from the open market and have been extinguished on April 9, 2019.
Consequently, the paid-up capital of the Company has been reduced from ` 800.00 million to ` 791.12 million comprising of 79,118,902 Equity
Shares of ` 10 each and the same has been reported above.

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Section C: Other Details

1. Does the Company have any Subsidiary Company / Yes, the Company has the following subsidiaries:
Companies? a. Persistent Systems Inc. (PSI), USA (Wholly owned
subsidiary)
b. Persistent Systems Pte. Ltd., Singapore
(Wholly owned subsidiary)
c. Persistent Systems France S.A.S., France
(Wholly owned subsidiary)
d. Persistent Systems Malaysia Sdn. Bhd., Malaysia (Wholly
owned subsidiary)
e. Persistent Systems Germany GmbH, Germany
(Wholly Owned Subsidiary)
f. Persistent Telecom Solutions Inc., USA
(Subsidiary of PSI)
g. Persistent Systems Israel Ltd., Israel (Subsidiary of PSI)
h. Persistent Systems Mexico S.A. de C.V., Mexico
(Subsidiary of PSI)
i. Herald Technologies Inc., USA*(Subsidiary of PSI)
j. Aepona Holdings Limited, Ireland (Under Liquidation)
(Subsidiary of PSI)
k. Aepona Group Limited, Ireland
(Subsidiary of Aepona Holdings Limited)
l. Aepona Limited, UK
(Subsidiary of Aepona Group Limited)
m. Valista Limited, Ireland (Under Liquidation)
(Subsidiary of Aepona Group Limited)
n. Persistent Systems Lanka (Private) Limited, Sri Lanka
(Formerly known as Aepona Software (Private) Limited
(Subsidiary of Valista Limited)
o. PARX Werks AG, Switzerland
(Subsidiary of Persistent Systems Germany GmbH)
p. PARX Consulting GmbH, Germany
(Subsidiary of PARX Werks AG)
2. Do the Subsidiary Company / Companies participate in Yes. They participate to the extent applicable in India.
the BR Initiatives of the parent company? If yes, then
indicate the number of such subsidiary company(ies)
3. Do any other entity / entities (e.g. suppliers, No
distributors, etc.) that the Company does business with,
participate in the BR initiatives of the Company? If yes,
then indicate the percentage of such entity / entities?
[Less than 30%, 30-60%, More than 60%]
* Acquired during FY 2018-19
Section D: BR Information
1. Details of Director / Directors responsible for BR
a. Details of the Director / Directors responsible for implementation of the BR policy / policies
i. DIN: 00005721
ii. Name: Dr. Anand Deshpande
iii. Designation: Chairman and Managing Director
b. Details of the BR Head
i. DIN: 00005721
ii. Name: Dr. Anand Deshpande
iii. Designation: Chairman and Managing Director
iv. Telephone No.: + 91 (20) 6703 0000
v. E-mail ID: [email protected]

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2. Principle-wise (as per NVGs) BR Policy / Policies

a. Details of compliance (Reply in Y / N)

S. Questions P P P P P P P P P
No. 1 2 3 4 5 6 7 8 9
1. Do you have a policy / policies for.... Y Y Y Y Y Y Y Y Y
2. Has the policy being formulated in consultation with the relevant Y Y Y Y Y Y Y Y Y
stakeholders?
3. Does the policy conform to any national / international standards? If yes, Y Y Y Y Y Y Y Y Y
specify? (50 words)
The Company has prepared these policies after reviewing the international
and industry best practices and has discussed internally in detail before its
implementation. The Company is confident that this policy is of international
standards and is open for amendments as and when felt necessary.
4. Has the policy being approved by the Board? Y Y Y Y Y Y Y Y Y
Is yes, has it been signed by MD / owner / CEO / appropriate Board Director? These policies have been signed by
the Managing Director.
5. Does the company have a specified committee of the Board / Director / Y Y Y Y Y Y Y Y Y
Official to oversee the implementation of the policy?
6. Indicate the link for the policy to be viewed online? The Policies are available on the
website of the company at
www.persistent.com
7. Has the policy been formally communicated to all relevant internal and Y Y Y Y Y Y Y Y Y
external stakeholders?
8. Does the company have in-house structure to implement the policy / Y Y Y Y Y Y Y Y Y
policies?
9. Does the Company have a grievance redressal mechanism related to the Y Y Y Y Y Y Y Y Y
policy / policies to address stakeholders’ grievances related to the policy /
policies?
10. Has the company carried out independent Audit / evaluation of the working Y N Y Y Y N Y Y N
of this policy by an internal or external agency?

3. Governance related to BR
a. Indicate the frequency with which the Board of Directors, Committee of the Board or CEO to assess the BR
performance of the Company. Within 3 months, 3-6 months, Annually, More than 1 year.
– Within 3 months
b. Does the Company publish a BR or a Sustainability Report? What is the hyperlink for viewing this report? How
frequently it is published?
– The Company publishes its Annual Report which contains the Report on Business Responsibility and it is available
on the Company website i.e. https://www.persistent.com/investors/annual-reports/
Section E: Principle-wise performance
Principle 1
Policy relating ethics, bribery and corruption
1. Does the policy relating to ethics, bribery and corruption cover only the company?
All companies under Persistent Group are covered by the policy relating to ethics, bribery and corruption.
Does it extend to the Group / Joint Ventures / Suppliers / Contractors / NGOs / Others?
Yes, all companies forming part of the Persistent group are covered by the policy. However, the Company has a separate
Code of Conduct for its Vendors / Suppliers / Contractors / NGOs wherein these principles are being covered for them.
2.
 ow many stakeholder complaints have been received in the past financial year and what percentage was
H
satisfactorily resolved by the management? If so, provide details thereof, in about 50 words or so –
During the financial year 2018-19, the Company has not received any complaint from its shareholder and/or other
stakeholders.

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Code of Conduct
Company’s Code of Conduct (also referred to as the ‘Code’) outlines its commitment to highest levels of ethical standards
and compliance. Company’s Code is based on its values and clarifies the ethics and compliance expectations for everyone
who works for the Company. The Code includes sections on operating safely, responsibly and reliably; its people; its business
partners; the Governments and communities the Company works with and its assets and financial integrity. The Code takes
into account key points from the Company’s internal standards related to anti-bribery and corruption, anti-money laundering,
competition and anti-trust law and trade sanctions. The Company conducts due diligence on all its vendors and customers in
accordance with these policies.
Whom the Code of Conduct applies to
The Code applies to every employee of the Company and its subsidiaries and a separate Vendors’ Code of Conduct is extended
to all its contractors and business partners. Where feasible, the Company seeks a contractual commitment from its contractors
and business partners to comply and work in line with the Code. Where the Company has the right to do so, it may consider
terminating contracts where a contractor has not complied with the obligations or not renewing a contract where a contractor
has acted in a manner that is not consistent with the Company’s values or the Code. The Company rigorously follows ethical
business decisions, ensuring the actions of all its employees, vendors, business partners and customers are consistent with
the law.
The Company gives attention on fostering of fair business practices while working with the internal and external stakeholders.
Further, the Company is committed for creating an ethical and sustainable business environment. This commitment is reflected
through various company policies and practices being observed towards the respective stakeholders of the Company.
Certifying the Code
All employees sign the Code of Conduct annually. It is embedded in the annual performance contract of all employees to
comply with the Code and to create an environment where people can confidently raise concerns without fear of reprisal. The
compliance with this Code by each employee is being monitored by the Company on a regular basis.
Fostering a ‘speak up’ culture
The Company is committed to providing an open environment where its employees, contractors and other stakeholders are
comfortable speaking up whenever they have a question about the code of conduct or are of the opinion that law, regulations or
the Code, may have been breached. All stakeholders are encouraged to raise concerns with the Company’s management team.
The Company has adopted Anti Harrasment Policy and its Internal Complaints Committee is duly constituted. during the year
under report, your Company has received one complaint of sexual harrasment which was disposed During the year.
The Policy is available at https://www.persistent.com/ethical-practices-at-persistent-systems/anti-harassment-policy/
Also, the Company conducts internal survey for obtaining feedback from the employees about the work culture in the Company,
in the department and inter-se relationship between the superiors and subordinates.
Principle 2
Business should provide goods and services that are safe and contribute to sustainability throughout their life cycle.
1. List up to 3 of your products or services whose design has incorporated social or environmental concerns, risks
and / or opportunities.
The Company is in the business of software development services and products. Hence, these products do not attract
social or environmental concerns, risks and/or opportunities.
2.  or each such product, provide the following details in respect of resource use (energy, water, raw material etc.) per unit
F
of product (optional):
a. Reduction during sourcing / production / distribution achieved since the previous year throughout the value chain?
Not Applicable
b. Reduction during usage by consumers (energy, water) has been achieved since the previous year?
Data centers are the highest consumers of power and energy. To achieve the minimum usage, the company has taken
following major:
1. Monitoring of power consumption and ensure that the consumption is optimized.

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2. Investment in alternate sources of energy – solar power plant at Aryabhata and Hinjawadi locations in Pune and
Wind in wind energy farms.
3. We have invested in bio-gas plant with our caterer.
Further details on energy conservation and creation of alternate energy sources are provided under point no. 5 below.
3.  oes the company have procedures in place for sustainable sourcing (including transportation)? If yes, what
D
percentage of your inputs was sourced sustainably?
Also, provide details thereof, in about 50 words or so.
The Company has Procurement Policy in place which considers sustainability while procuring any material/sourcing.
4.  as the company taken any steps to procure goods and services from local & small producers, including communities
H
surrounding their place of work?
If yes, what steps have been taken to improve their capacity and capability of local and small vendors?
The Company recognizes the contribution of MSMEs in the economy and is committed to strengthen this important
element in the economy. Therefore, the Company works with the MSMEs and local vendors while procuring material for
its operations and give motivation for their business. The Company also guides its MSME vendors on improving their
technical capabilities and strengthen them on improving quality and increasing the productivity.
Additionally, the Company through its CSR wing, Persistent Foundation has approached the community in its immediate
vicinity and has initiated health projects and community development projects. The Foundation has also concentrated
on the education facilities to be extended to the nearby Government schools. The consolidated effect of the above has
benefited the local and small vendors to improve their capacity and capability.
5. Does the company have a mechanism to recycle products and waste? If yes, what is the percentage of recycling of
products and waste (separately as <5%, 5-10%, >10%). Also, provide details thereof, in about 50 words or so.
a. All waste papers are shredded and disposed-off to scrap vendor who collects them for recycling from the Company’s
offices in India.
b. The Company uses the waste water from toilets / washrooms to water its plants and recycles the use of the same.
Sewage Treatment Water Plants have been installed and commissioned at the Company’s Goa, Nagpur and Pune
Facilities and the treated water is being used to water the garden area.
c. The Company whenever possible appeals its employees not to use plastic bags. Further, to promote the use of cloth
or paper bags, the Company also organizes ‘Zero Plastic Days’.
Principle 3
Business should promote the well-being of all employees
1. Please indicate the Total number of employees (including trainees and associates) as on March 31, 2019 – 7,679.
2. Please indicate the total number of employees hired on temporary / contractual / casual basis – 812.
3. Please indicate the number of permanent women employees – 2,682.
4. Please indicate the number of permanent employees with disabilities – 2.
5. Do you have an employee association that is recognized by management? – No
6. What percentage of your permanent employees is members of this recognized employee association? – Not Applicable
7. Please indicate the Number of complaints relating to child labour, forced labour, involuntary labour, sexual
harassment in the last financial year and pending, as on the end of the financial year.

Sr. Category No. of complaints filed No. of complaints pending as

No. during the financial year on end of the financial year
2018-19 2018-19
1. Child labour / forced labour / involuntary labour Nil Nil
2. Sexual harassment One Nil
3. Discriminatory employment Nil Nil

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8. What percentage of your under mentioned employees were given safety and skill up-gradation training in the last year?
a. Permanent Employees – 100%
b. Permanent Women Employees – 100%
c. Casual / Temporary / Contractual Employees – 100%
d. Employees with Disabilities – 100%
The Company’s approach for managing its core asset i.e. its people is founded on the following beliefs:
a. People’s safety is our first priority
b. Company grows best by growing its own people
c. Our people have potential, we need to develop it
d. Diversity matters, so does inclusion
e. We need the best talent, and need to meet the expectations of the best talent.
In our endeavor to be a contemporary organisation, we constantly review our policies and benchmark them against the best in
class to ensure that the Company’s agenda on employee well-being and engagement is serviced effectively.
There is a special focus to involve employees in the policy making process. A group called ‘Policy Council’ was constituted which
has been meeting regularly to examine the various policies and processes in the organisation, especially policies impacting
employees and their day-to-day functions. The council has proposed several simplification and modification to policies which
has also ensured improved engagement levels and ownership among employees.
The Company has been regularly providing annual preventive health checks for all employees at its own cost. Further, to enable
employees manage work-life balance and related stress, if any, the Company has taken several initiatives including:
• Agile Working: A core component of the Company’s Diversity and Inclusion ambition, agile working encompasses a wide
range of working options that enables employees to work flexibly at full potential. Part time working, job-share, work from
home and flexible hours are some options granted under this initiative.
• Career Break and Maternity / Paternity Leave: These benefits are available to employees of the Company irrespective
of the level that they operate at.
• Workplace facilities: At all offices and facilities of the Company, attention is paid to ergonomics to ensure a comfortable
work environment.
• Leadership Development: Building both, people and functional capability is one of the key elements of our investment in
people. Few employees were selected for year long ‘ChangeMakers’ program who were then given exposure to different
key activities across the organization. This group has also worked on various ideas and activities towards proposing
various improvements and changes to the operational issues in the organization.
• Diversity and Inclusion: As a part of a large multinational group, the Company wants the workforce to represent the
societies in which it operates. The Company’s commitment to Diversity and Inclusion enables it to be creative, competitive
and thrive in the IT environment.
Prerana, the forum, for the women run by women in the Company, had special focus on women in leadership during this year.
A special mentoring program is launched for aspiring women to be nurtured as future leaders. Various lectures by women
leaders were also arranged from time to time for motivating women in the Company.
Principle 4
Businesses should respect the interests of, and be responsive towards all stakeholders, especially those who are disadvantaged,
vulnerable and marginalized
1. Has the company mapped its internal and external stakeholders? Yes
2. Out of the above, has the company identified the disadvantaged, vulnerable & marginalized stakeholders - Yes
3. Are there any special initiatives taken by the company to engage with the disadvantaged, vulnerable and
marginalized stakeholders. If so, provide details thereof, in about 50 words or so –
The Company through Persistent Foundation (the ‘Foundation’), CSR wing of the Company has undertaken several
programs to indulge with the disadvantaged, vulnerable and marginalized stakeholders. During the financial year, the
following hallmark projects were implemented by the Foundation under 3 (three) focus areas:

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Education
Working with 15 schools, 25 study centers 50+ colleges and 14 NGO partners, reaching out to 6,106 students
and 38 teachers, through 13 initiatives across 5 locations.
All drives under the thrust are of education aims at
• Improving quality of education through various intervention and mentoring program
• Financial support to students to complete their education
• Support for infrastructure development
• Enabling students to get opportunities for overall personality development
• Enabling through skill development program, improving employability
a. Kiran – Girls’ Scholarship Program: Persistent Foundation started Girls’ Scholarship Program in the year 2010-11 with
the objective to help needy and competent girls to become educated, confident, skilled and employable. The scholarship
amount is decided on the basis of the fee structure of the engineering colleges. The Foundation provides ` 40,000 per
year to each girl student, till the completion of her curriculum. During the year, total of 55 girls were selected for this
program. In total, around 166 girls were supported under this program. Mentorship is an integral part of the program.
These scholars are mentored by your Company employees, while a residential mentoring program is conducted twice a
year in Pune and Bengaluru, in order to educate the students on current technological advancements and ensure that
they are industry-ready.
b. Study Centers: Study center is one of the major drive through which Persistent Foundation reached to 1,061 students. The
program was implemented at 3 locations – Pune, Nagpur and Hyderabad. In Pune and Hyderabad, the program addresses
the needs of students in slum areas and in Nagpur the program focuses more on need of rural students. Along with
support for scholastic improvement, study center across locations ensures that every student gets the opportunity to
explore his/her own areas of interest.
c. I ntegrated School Upliftment Program: Under this program, the Foundation aims at infrastructure development, teachers
training, life skill education, support for extracurricular activities, support for improvement of scholastic performance and
career guidance. The Foundation undertook following activities under this initiative:
i. Teachers Training Program:
During the year, 24 teachers from 4 Pre-Primary and Primary Schools and 14 teachers from 2 NGOs were participated
in the training. The program covers teaching-learning methodologies that are strongly grounded in the principles and
current understanding of Cognitive Science, Child Development and Learning.
Teachers training program for secondary school was also conducted along with the Institute for Psychological Health.
During the year, total 8 sessions were conducted, 9 teachers attended the program from 6 schools.
ii. Reading Writing Improvement program
This program was implemented in 6 schools covering more than 1,200 students for last 3 (Three) years.
iii. Life Skill Education and WaSH
Under this program, the Foundation has reached to the more than 1,000 students through 35 sessions.
iv. School Infrastructure
Under infrastructure development, the Foundation has helped the schools by way of construction / refurbishment
of toilet blocks, rain water harvesting, assistance in enriching libraries, science labs, etc., provided benches and bunk
beds, sports equipment, etc.
d.  kill Development program: Through this program, The Foundation aims at enabling young men and women to have
S
a sustainable source of livelihood. In the financial year 2018-19, 132 young women got trained under skill development
program, out of which 85% have jobs and are earning ` 7,000 to ` 9,000 on a monthly basis. The same has not only
improved their financial status in the society but also has improved their social status.

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Health
Breathing new life into healthcare for the young and old
a. Mobile Medical Unit: Persistent Foundation, in association with HelpAge India, operated the Mobile Medical Unit for
16 remote village in Goa. Initially, support was extended to one village. Considering the non-accessibility of medical services
in villages and poor transport services, Persistent Foundation has now extended the support to 16 villages. During this
year, 1,714 unique patients were treated and total 16,229 treatments were provided.
b. Cataract Surgeries: Persistent Foundation is associated with Dr. Manohar Dole Medical Foundation in Pune, Swami
Vivekananda Memorial Mission in Nagpur and Dr. L. V. Prasad Memorial Hospital in Hyderabad for carrying out the cataract
surgeries of elderly poor people. During the year, around 1,400 people were benefited from such surgeries.
c. Facial cleft surgeries: Persistent Foundation is conducting this activity in association with Akhila Bharatha Mahila Seva
Samaja and Rotary Club, Nagpur. 40 camps were organised at Bengaluru, Hyderabad, Goa, Nagpur and Pune. Around 514
patients underwent surgeries in these camps this year, youngest patient being 1 month of age.
d. Pediatric Surgeries: During the year 2018-19, Persistent Foundation conducted this program at 2 locations at Pune and
Nagpur. In Nagpur, the program was implemented in association with Goud Saraswat Sabha and in Pune, the program
was implemented through Samavedana. Total 44 patients, ranging in the age group from 2 to 17 years old, were treated
successfully.
e. Support to Jaipur Foot: During the year 2018-19, in partnership with Bhagwan Mahavir Vikalang Sahayata Samittee
(BMVSS), the Foundation initiated the project in Nagpur, Hyderabad and Bengaluru, where around 605 patients were
supported during the year.
f. Squint Correction Surgery: Persistent Foundation has conducted this activity in association with Saksham, an NGO.
During the year, the support was given to 29 patients.
g. Support for Dialysis Treatment: Persistent Foundation has been supporting the Seth Tarachand Ramanath Charitable
Ayurvedic Hospital Trust since 2010 and is supporting Ashwini Kidney Dialysis center in Nagpur for last 2 years. During the
year, the Persistent Foundation has supported 3,441 dialysis sessions.
Community Development
Growing stronger by coming together
a. Watershed Project: Watershed Development has been a flagship project of Persistent Foundation for the past two years.
The Watershed project involves the deepening and widening of streams and nullahs and the construction of cement and
earthen check dams to conserve water. The program was implemented in the Pune and Nagpur districts. In Pune district,
the project was implemented in Pimpalwadi, Shastabad and Mitgulwadi villages in Shirur taluka which falls under the rain
shadow area. The project was implemented in Nisadkheda in Nagpur district. The program was implemented along with
IAHV in Pune and Nagpur district. Total desilting of 17.38 km, 35,500 Cum desilting of percolation tank , 2 check dams were
constructed as part of the work completed in these 2 villages. The Foundation was able to reach out to 3,910 farmers which
benefitted 2,640 hectares of land.
b. Drinking Water Projects: Persistent Foundation has considered it as its Flagship Program. During the year, 11 open wells
were constructed. This program helped to reduce women drudgery to a considerable extent. Earlier, on an average a
women has to walk for 2-3 km for one trip, in which she use to carry 30-35 litres of water. A women has to make a minimum
3-4 trips per day of about 9-12 kms walk with 30-35 liters water on head. She had to do this minimum for 3 months. Due to
implementation of this program, the duration has been reduced to 1 month. The distance has been reduced from 3-4 kms
to 0.5 to 1 km.
c. Skill Enhancement Programs in Urban and Rural Areas: The Foundation also addresses the need for livelihood creation
in urban and rural areas, through its skill enhancement programs.
The objectives of this project are as follows:
• To provide quality doorstep livestock based services for livestock development, increase productivity of quality milk
and support for enhancing dairy business
• Capacity building of youths to ensure livelihood opportunities through farm, off farm and non-farm based livelihood
sources.
• To demonstrate Bio Gas unit for alternative energy solution

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The details of the projects undertaken under the program are as follows:

Details of Program Beneficiaries

530 cows were inseminated out of which 320 delivered -
Artificial Insemination - semen
198 Male and Female-122
This service was provided to farmer in subsidiary rate by
Artificial Insemination - Sorted Semen
the project. 43 farmers have availed the serivces.
Mineral mixture 44 dairy farmers
Three camps were organised in which experts diagnosed
Infertility cum health camp
and treated 474 sub fertile and infertile cattle.
133 farmers, they were able to produce 20-25 tonnes of
Fodder Development
green fodder in less water in drought condition.
The project covered 50 farmers providing them 100 bags
Demonstration on Silage Preparation for silage making. Total 178 farmers got trained producing
170.56 tones, saving ` 5 Lakhs.
Exposure Visit 80 farmers were taken for different dairy places
16 families have installed bio gas unit. They have
benefited as follows:
Demonstration of Bio Gas Unit • Savings of ` 5,000 in a year
• Availability of organic fertilizer for farm, this results in
• Saving of ` 10,000 p.a.
d. Tree Plantation Drive: During the year, Persistent Foundation has planted 3,550 trees in Pune along with TERRE Policy.
The initiative has been implemented on forest land. The planted trees will be maintained for a period of three years.
Principle 5
Businesses should respect and promote Human Rights
1. Does the policy of the company on human rights cover only the company or extend to the Group / Joint Ventures /
Suppliers / Contractors / NGOs / Others?
The Policy extends to the Persistent Group and its contractors.
2.  ow many stakeholder complaints have been received in the past financial year and what percent was satisfactorily
H
resolved by the management?
During the year, the Company did not receive any complaint from its stakeholders.
Principle 6
Business should respect, protect and make efforts to restore the environment
1. Does the policy related to Principle 6 cover only the company or extends to the Group / Joint Ventures /

Suppliers / Contractors / NGOs / others -
The policy related to Principle 6 extends to the Persistent Group.
2. Does the company have strategies / initiatives to address global environmental issues such as climate change,
global warming, etc.? Y/N. If yes, please give hyperlink for webpage etc.
The Company promotes use of non-traditional sources of energy such as solar energy and wind mill energy. Further, the
Company promotes the use of products which are sustainable in nature which, in turn, helps to reduce the impact of
climate change and global warming.
All the facilities of the Company in India are certified by DNVGL for ISO 14001:2015 and upgrade to Occupational Health
and Safety Management System Standard by ISO 45001:2018 certifications after surveillance audit carried out in January
2019 and are now initiated. Best practices to preserve the environment/health and safety are undertaken by the Company
even during constructing its various premises by using crush sand, fly ash bricks and double glass unit, use of gypsum and
recycled wood to protect the environment.

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Also, all the facilities of your Company in India are certified by AGS for ISO 14064-1 Greenhouse gas inventory and achieved
reduction of 6.87% as against target of 3%.
The Company conducts the conservation of trees campaign which aims to spread awareness about tree conservation.
Employees of the Company are encouraged to plant at least one sapling in their vicinity. The Company has distributed
more than 1,600 saplings.
Reduce paper wastage and make prints only when necessary; Persistent organizes ‘No Printer Days’ to promote awareness.
3. Does the company identify and assess potential environmental risks? Yes
4. Does the company have any project related to Clean Development Mechanism?
If so, provide details thereof, in about 50 words or so. Also, if Yes, whether any environmental compliance report is filed?
a. A 250 KW rooftop solar power plant was commissioned on the terrace of Aryabhata – Pingala facility on April 30,
2015 and it generated 174,751 units in the financial year 2018-19. Since commissioning of the plant 701,641 units have
been generated till March 31, 2019.
b. A 276 KW rooftop solar power plant was commissioned on the terrace of Hinjawadi facility in January/February 2018
and inaugurated on Gudi Padwa, March 18, 2018. It generated 429,795 units in the financial year 2018-19. Solar Plant
is designed to generate 4.15 lakhs units/annum.
c. Two 2.1 MW windmills are operational at Dhule in June 2011 and at Jath District, Sangali in Maharashtra
in September 2012. During the financial year 2018-19, Dhule windmill generated 4,839,123 units 30,203 MWH units
have been generated till March 31, 2019. Whereas Sangali windmill generated 2,898,593 units. 17,491 MWH units have
been generated till March 31, 2019.
d. One of the CSR projects of the Company is waste management project in ward 11 and 36 under the Pune Municipal
Corporation.
e. The Company has installed the following solar power plants through CSR activity as a part of its Clean Development
Mechanism : -
• Pune Railway Station 160 KW
• Hyderabad Railway Station 229 KW
• Tarachand Hospital 64.5 KW
Since these are voluntary initiatives of the Company and are not compulsorily applicable under any applicable laws, the
Company has not filed any environmental compliance report for the above projects.
5. Has the company undertaken any other initiatives on – clean technology, energy efficiency, renewable energy, etc.
Please refer answer to point no, 4 above.
6.  re the Emissions / Waste generated by the company within the permissible limits given by CPCB / SPCB for the
A
financial year being reported?
Yes. Since, the Company is in the business of software development services and products, hence the reporting for the
Emissions / Waste generated is not applicable.
7. Number of show cause / legal notices received from CPCB / SPCB which are pending (i.e. not resolved to satisfaction)
as on end of financial year. : Nil
Principle 7
Businesses, when engaged in influencing public and regulatory policy, should do so in a responsible manner
1. Is your company a member of any trade and chamber or association? If Yes, name only those major ones that your
business deals with:
Yes, the Company is a member of the following trade and chamber or associations -
a. National Association for Software and Services Companies (NASSCOM)
b. Confederation of Indian Industry (CII)
c. Mahratta Chamber of Commerce Industries and Agriculture (MCCIA)

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2.  ave you advocated / lobbied through above associations for the advancement or improvement of public good?
H
Yes / No; if yes specify the broad areas (drop box: Governance and Administration, Economic Reforms, Inclusive
Development Policies, Energy security, Water, Food Security, Sustainable Business Principles, Others)
The Company has participated in consultations on the following areas:
a. Governance and Administration
b. Inclusive development policies
c. Sustainable business principles
d. Corporate Social Responsibility
Principle 8
Businesses should support inclusive growth and equitable development
1.  oes the company have specified programs / initiatives / projects in pursuit of the policy related to Principle 8? If
D
yes details thereof.
Please refer the answer to Question No. 3 of Principle No. 4 in this report.
2. Are the programs / projects undertaken through in-house team / own foundation / external NGO / government
structures / any other organization?
Yes, Persistent Foundation, the Company’s CSR Wing undertakes these activities.
3. Have you done any impact assessment of your initiative?
Assessment of the initiatives of the Company is done through quarterly Board of Trustees’ meetings of Persistent
Foundation. The Company publishes the activities of Persistent Foundation throughout the year in the Annual Report of
the Company.
One of the core value of the Company / Foundation is to strive to achieve excellence in everything that we do, the same
was translated in action in the financial year 2018-19. Third party Impact Assessment was conducted this year of all key
projects of Persistent Foundation as it completed a decade of it establishment.
Third party impact assessment was carried out through an agency ‘Chhaaya Strategic Advisors LLP’.
The study covered

Locations No. of Projects No. of representatives interviewed from associated No. of employees
NGOs / partners and beneficiaries in person interviewed
5 54 300* 714
*More than 5 % beneficiries were contacted telephonically/survey forms was shared to take feedback about the services
offered.
The study appreciated Persistent Foundation being CSR arm of the Company.
The top 3 observations of the impact assessment study were as follows:
1. Clear purpose and visionary leadership;
2. The activities of the Foundation have created significant Impact; and
3. There is 100% compliance on the CSR mandate of the Companies Act 2013, Section 135, ever since the Act
is introduced.
4. What is your company’s direct contribution to community development projects – Amount in INR and the details of
the projects undertaken
a. For the financial year 2018-19: ` 70.57 Million to Persistent Foundation, ` 7.4 Million towards the contribution by
the Company towards Project Lakshya, an Initiative of Government of India, ` 1.40 Million towards the cost of the
technical contribution towards MGI- Shakti Project, an initiative of the Government of Maharashtra and coordinated
by McKinsey, India and ` 1.13 Million to directly to charitable institutions by the Company
b. Please refer the report on the activities of Persistent Foundation for the details of the projects undertaken during the
financial year 2018-19.

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5.  ave you taken steps to ensure that this community development initiative is successfully adopted by the
H
community? Please explain in 50 words, or so.
Yes, initiatives conducted are assessed through outcomes achieved and overall impact on the society as a whole.
Assessment is mainly done through the following:
Weekly review meetings of Persistent Foundation, Quarterly Board of Trustees’ meetings, periodical monitoring the
activities of the Foundation by the Corporate Social Responsibility Committee and the Board of Directors of the Company,
follow-up field visits, giving an opportunity to the beneficiaries to speak at the Annual Day of Persistent Foundation,
telephonic and email communications with the external parties.
The Company has engaged skilled employees from Human Resources, Corporate Secretarial and Finance teams who have
domain knowledge to monitor the CSR activities i.e. activities of Persistent Foundation. The Foundation staff looks after
the execution of the projects of the Company on the CSR front.
Third party Impact Assessment was conducted this year of the key projects of Persistent Foundation as the Foundation
completes a decade of it establishment.
Principle 9
Businesses should engage with and provide value to their customers and consumers in a responsible manner
1. What percentage of customer complaints / consumer cases are pending as on the end of financial year?
The customer complaints are technology specific and are resolved at the delivery of the software and before contract
closure. There are no customer complaints that are material in nature and giving rise to the litigations.
2.  oes the company display product information on the product label, over and above what is mandated as per local
D
laws? Yes / No / N.A. / Remarks (additional information)
Since the Company is in the business of software development services and products, this requirement does not strictly
apply to the Company. However, the Company makes necessary disclosures about the software products being developed
to its customers as per its contractual obligations.
3. Is there any case filed by any stakeholder against the company regarding unfair trade practices, irresponsible
advertising and / or anti-competitive behaviour during the last five years and pending as on end of financial year.
If so, provide details thereof, in about 50 words or so.
There is no anti-competitive behaviour, abuse of dominant position or unfair trade practices case pending against the
Company.
4. Did your company carry out any consumer survey / consumer satisfaction trends?
The Company carries on a consumer satisfaction survey on a periodic basis and compares the various parameters across
multiple dimensions through peer comparison and its membership in the various chambers of commerce.

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Management Discussion and Analysis

The following discussion is based on the audited consolidated financial statements of Persistent Systems Limited, and its
subsidiaries and step-down subsidiaries as referred elsewhere in this Annual Report.
In this report, Persistent Systems and its subsidiaries and step-down subsidiaries collectively have been referred to as “the
Company”, reflecting the financial position in the consolidated financial statements. The financial year 2018-19 has been
referred to as “the year” and the financial year 2017-18 has been referred to as “the previous year”.
The consolidated financial statements have been prepared in accordance with Ind-AS.
Our Business
We build software that drives the business of our customers; enterprises and software product companies with software at the
core of their digital transformation.
Over the last twenty-nine years, ever since our inception, the primary focus of our business has remained the same – building
software for our customers. Some of our earliest customers continue to be our customers.
Clearly, the market, the technology, the environment and the context of our business has evolved over the three decades and
we have endeavored to keep pace with these changes. As we reflect on our business through these years, we observe four
distinct phases that the Company has gone through.
In the early years of the Company, our business was focused on working with customers to address specific and core software
engineering needs. The focus was on working on projects as identified by customers. Early customers were core software
companies building data products and start-ups who were working with us to accelerate their product roadmap. In the second
phase, we focused on outsourced product development and provided software development services for all parts of the
product development life cycle. Software product engineering has evolved over the years and today is continuous by design.
It is fundamentally different from IT services or outsourcing in how teams are formed or managed. Software and technology
businesses are constantly shifting their attention between the big picture of continuous product innovation or design and
the details of technology architecture, integrations, and quality. In the third phase we extend our partnership with software
companies by helping them deploy product and helping them with innovative shared ownership business models.
In the fourth phase of evolution we find that all businesses are in the process of digital transformation. Digital transformations
are continuous by design and in method. One-time digital fixes don’t stay current for long. Software-driven transformations
must be continuous to keep up with new and emerging technologies waves. Digital is being software-driven in business.
Having worked with software companies over three decades we have evolved a framework, Software 4.0, which captures
the essence of “how” of a software business and inspires the way we collaborate with our customers – from the born-digital
industry disruptors to multi-generation technology companies or enterprises across industries who are transforming into
software driven businesses.
Our Market
Digital transformation is real, and every business must transform to defend their current business and must find ways to take
advantage of new markets. They must do this in an environment of intense competition that includes traditional incumbents
and new upstart companies that are disrupting traditional markets by using next generation technology.
It was clear that starting with 2018, technologies such as cloud computing, big data and machine learning have become
mainstream. Products have evolved and enterprises are starting on the journey to deploy next generation products.
Worldwide IT spending is projected to total $3.79 trillion in 2019, an increase of 1.1 percent from 2018, according to the
April 2019 forecast by Gartner, Inc.
“The shift of enterprise IT spending from traditional (noncloud) offerings to new, cloud-based alternatives is continuing to drive
growth in the enterprise software market. In 2019, the market is forecast to reach $427 billion, up 7.1 percent from $399 billion
in 2018. The largest cloud shift has so far occurred in application software. However, Gartner expects increased growth for
the infrastructure software segment in the near-term, particularly in integration platform as a service (iPaaS) and application
platform as a service (aPaaS).”

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Market for our Technology Investments

We have over the years worked with product companies that are building products and technologies that are becoming
mainstream. We have invested in cloud computing, big data, machine learning and security are required by all enterprises that
are deploying next generation technology.
Gartner in the same press release further states
“The choices CIOs make about technology investments are essential to the success of digital business. Disruptive emerging
technologies, such as artificial intelligence (AI), will reshape business models as well as the economics of public- and private-
sector enterprises. AI is having a major effect on IT spending, although its role is often misunderstood,” said Mr. Lovelock. “AI
is not a product, it is really a set of techniques or a computer engineering discipline. As such, AI is being embedded in many
existing products and services, as well as being central to new development efforts in every industry. Gartner’s AI business
value forecast predicts that organizations will receive $1.9 trillion worth of benefit from the use of AI this year alone.”
Opportunities and challenges
Clearly, there is a market for our services, and we have the capacity and capability to deliver to the needs in the market. Despite
the above, it is a fact that we have struggled with growth this year. We believe that our growth rate was challenged because of
the challenges with the business of our largest customer and the fact that it has taken us longer to transition from a business
where our customers were purely software product companies to where our customers are now enterprises that are investing
in software for their business transformation.
We believe that with investments in a new leadership team, marketing and thought leadership through the growth and solutions
team, sales velocity team and partnerships we should be back on track and we will be back on the growth course.

Observation Response
Work is not going down but the effort for Move beyond effort or resource based billing.
the same work is going down. Move to asset based billing – IP.
Our business is primarily “effort” based. Evolve to value based billing models.
Playing to our strength of being a Anticipating a micro-services architecture, invested in Vega, a platform
technology provider for our customers – based on the data – api – experience architecture.
there is a market for technology skills in Double down on technology areas. We picked to focus on cloud, data as part
the market. of the regular business and in addition focused on
H2: Software 4.0, Software driven things (IOT), Actionable Insights.
H3: Machine Learning, Genomics, Block Chain, Security
Every business is becoming a software Take product engineering to enterprises by focusing on the “how” of digital
driven business. Buyers for our product transformation and leveraging partnerships for better access to new set of
engineering story are no more restricted to customers.
software companies -- every business needs
what we have expertise in.
We have worked with key players in the While we may not have the necessary credibility with new enterprise
technology space, we can partner with customers, we can invest with partners to access key early adopters.
them for customer access.
We have access to capital. Acquire – end of life products, IP assets and other Companies
Human Resource Management
Organization’s competitive advantage is generated from the human resources and the performance of the organization is
influenced by a set of effective HR practices. Corporate value systems are one of the constituents of its brand building. Our
value systems make us the preferred destination for the campus hires. As the job market continues to be challenging, regular
workforce planning is the key in our talent acquisition plan.
With our spread across 19 countries and about 1/3 of our headcount being women, it makes a very diverse talent culture.
Although, managing diverse workforce is a challenge but it has also brought us few benefits such as innovation, increased
adaptability and productivity.
Persistent University is a learning platform used for talent development. it has various eLearning modules which help for online
trainings. In addition, we also have various leadership programs like “Arjuna”, “Pride” etc. which help nurture the leadership
qualities among entry level and mid-level managers.

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The liberal HR policies and continuous efforts in upgrading skills has helped Persistent retain bulk of its workforce.
The total headcount on a consolidated basis as on March 31, 2019 was 9,962. Over 92% of these are technical headcount and
balance are sales and other support personnel. The net addition during the year was 986.
Internal control system and its adequacy
The CEO and CFO certification provided under Report on Corporate Governance section of Annual report discusses the
adequacy and procedure of internal control over financial reporting.
Financial position and results of operations
Persistent Systems Limited was listed on National Stock Exchange of India Limited (NSE) and the BSE Limited (BSE) on
April 6, 2010.
The financial statements of the Company 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 recognition of assets acquired under
business combinations which have been measured at fair value. Historical cost is generally based on the fair value of the
consideration given in exchange for goods and services. The accounting policies are consistently applied by the Company
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.
Financial performance summary

Particulars Unit Financial Year % to Financial Year % to Growth

2018-19 revenue 2017-18 revenue
Revenue INR Million 33,659.41 30,337.03 10.95%
Revenue USD Million 480.97 470.55 2.21%
Earnings before interest, INR Million 5,562.40 16.53% 4,687.26 15.45% 18.67%
depreciation, amortisation and taxes
Profit Before Tax INR Million 4,863.39 14.45% 4,292.61 14.15% 13.30%
Profit After Tax INR Million 3,516.79 10.45% 3,230.88 10.65% 8.85%
Earnings Per Share (EPS) (Basic and INR 43.99 40.39 8.91%
Diluted)
Share Capital
The authorized share capital of the Company as at March 31, 2019 was ` 2,000.00 Million divided into 200 Million equity shares
of ` 10 each. The paid-up share capital as at March 31, 2019 was ` 791.19 Million divided into 79.119 Million equity shares of
` 10 each. (Previous year ` 800.00 Million divided into 80.00 Million equity shares of ` 10 each). There were no changes in the
authorized share capital during the year. The reduction in paid up share capital is on account of buy-back of equity shares.
As approved in the Board Meeting held in January 2019, the Company decided to buy-back fully paid-up equity shares via
“open market” route through stock exchange for a total amount not exceeding INR 2,250 Million. Of these 881,098 shares were
bought back at an average rate of INR 648.51 per share. For further details, please refer note 5d in the consolidated financial
statement.
Other Equity
The Other Equity as at March 31, 2019 stood at ` 22,655.61 Million as against ` 20,471.99 Million as at March 31, 2018, showing
a growth of 10.67%. The details of Other Equity are as below:
(In ` Million)

Particulars As at As at
March 31, 2019 March 31, 2018
Securities Premium Reserve 774.10 1,336.70
General Reserve 10,565.95 9,306.27
Share Options Outstanding Reserve 76.29 90.52
Gain on bargain purchases 52.71 26.39
Capital redemption reserve 8.81 -
Special Economic Zone re-investment reserve 70.00 -

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Particulars As at As at
March 31, 2019 March 31, 2018
Retained Earnings 10,657.52 9,544.13
Effective portion of cash flow hedges 185.06 16.63
Exchange differences on translating the financial statements of foreign operations 265.17 151.35
Total 22,655.61 20,471.99

Securities Premium Reserve

The Company utilized ` 562.60 Million from Securities Premium Reserve towards buy back of equity shares in accordance with
the provisions of Section 52 of the Companies Act, 2013. Reduction in Securities Premium Reserve was on account of utilization
for share buy-back. Out of the average buy-back price of ` 648.51 per share, ` 638.51 per share (after deducting the face value
of ` 10 each) for 881,098 shares bought back till March 31, 2019 has been appropriated against Security Premium Reserve.
For further details, please refer “Other Equity” under Statement of Changes in Equity in the consolidated financials.
General Reserve
During the Financial Year 2018-19, the Company transferred ` 1,260.03 Million out of the profits of the year to General Reserve
in accordance with the Company’s Policy of Transfer of Profits to General Reserve. Further, there has been transfer of ` 14.23
Million from Share Options Outstanding Reserve on exercise/expiry of stock options by the employees. The balance in General
Reserve stood at ` 10,565.95 Million as at March 31, 2019 as against ` 9,306.27 Million as at March 31, 2018. Please refer “Other
Equity” under Statement of Changes in Equity in the consolidated financials for details.
Share Options Outstanding Reserve
In accordance with Ind AS 102 – “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 following graded
vesting method.
The amount of stock options outstanding as at March 31, 2019 was ` 76.29 Million for 1.05 Million options outstanding as on that
date (The corresponding amount in stock options outstanding account as on March 31, 2018 was ` 90.52 Million for 1.70 Million
options outstanding on that date). The decrease in the liability represents fair value of options vested and exercise during
the year by the employees. Please refer “Other Equity” under Statement of Changes in Equity in the consolidated financials
for details.
Gain on bargain purchases
As per Ind AS 103- “Business Combinations”, if the net fair value of the identifiable assets, liabilities and contingent liabilities
acquired exceeds the cost of business acquisition, a gain is recognized as Gain on bargain purchases under other comprehensive
income. The Company has carried out the fair valuation of all identifiable assets, liabilities and contingent liabilities acquired
under the business acquisitions after the date of transition to Ind AS (i.e. April 1, 2015). Based on this, the Gain on bargain
purchases stood at ` 52.71 Million and ` 26.39 Million as at March 31, 2019 and March 31, 2018 respectively.
Please refer “Other Equity” under Statement of Changes in Equity in the consolidated financials for details.
Capital redemption reserve
During the year ended March 31, 2019, he Company has transferred ` 8.81 Million to Capital redemption reserve representing
the nominal value of the shares bought back in accordance with section 69 of the Companies Act, 2013. Please refer “Other
Equity” under Statement of Changes in Equity in the consolidated financials for details.
Special Economic Zone re-investment reserve
The Company has transferred ` 70.00 Million to Special Economic Zone re-investment reserve out of the profit in terms of the
provisions of Section 10AA(1)(ii) of the Income tax Act, 1961. The reserve will be utilised by the Company for acquiring new plant
and machinery for the purpose of its business in terms of Section 10AA(2) of the Income tax Act, 1961.
Retained Earnings
The balance retained in the Statement of Profit and Loss as at March 31, 2019 is ` 1,113.39 Million, after appropriation towards
dividend of ` 880.00 Million, dividend distribution tax of ` 137.41 Million on dividend paid during the year, transfer to General
Reserve ` 1,260.03 Million, transfer to capital redemption reserve ` 8.81 Million and transfer to Special Economic Zone
re-investment reserve ` 70.00 Million.

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The details of changes in Retained Earnings are as follows:

(In ` Million)

Particulars For the year For the year

ended ended
March 31, 2019 March 31, 2018
Opening balance 9,544.13 8,525.07
Net profit for the year 3,516.79 3,230.88
Other comprehensive income for the year (Remeasurements of defined (47.15) 106.88
benefit schemes)
Dividend (including tax on dividend) (1,017.41) (950.23)
Transfer to general reserve (1,260.03) (1,368.47)
Transfer to capital redemption reserve (8.81) -
Transfer to Special Economic Zone re-investment reserve (70.00) -
Closing balance 10,657.52 9,544.13

Please refer “Other Equity” under Statement of Changes in Equity in the consolidated financials for details.
Effective portion of cash flow hedges
The Company derives a substantial part of its revenues in foreign currency while a major part of its expenses is incurred in
Indian Rupees. This exposes the Company to the risk of loss due to fluctuations in foreign currency rates.
The following chart shows movement of monthly spot and forward rates of the Rupee against the USD in Financial year 2018-19,
indicating the volatility that the currency faced throughout the year:

Spot and Forward rate movement (USD/INR)

74.00 73.59

73.00 72.48
71.64
72.00 71.05 71.16
70.96
70.61
71.00
70.00
68.61 69.11
69.00 68.47

68.00 67.54
68.33
66.65
67.00
67.37 67.33 67.17 67.33
66.00 66.61 66.83 66.87 67.11 67.00 67.10 66.95
Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19

Closing Avg Hedge Rate

The Company follows a Foreign Exchange Risk Management Policy as approved by its Board of Directors to mitigate the
currency fluctuation risk. The Company has a 12-months forward cover at defined range of its net projected export earnings.
As per the accounting principles laid down in Ind AS 109 – “Financial Instruments” relating to cash flow hedges, derivative
financial instruments which qualify for cash flow hedge accounting are fair valued at balance sheet date and the effective
portion of the resultant loss / (gain) is debited / (credited) to the hedge reserve under other comprehensive income and the
ineffective portion is recognized in the statement of profit and loss. Derivative financial instruments are carried as forward
contract receivable when the fair value is positive and as forward contract payable when the fair value is negative.
Changes in the fair value of derivative instruments that do not qualify for hedge accounting are recognized in the statement
of profit and loss as they arise.
Hedge accounting is discontinued when the hedging instrument expires or is sold, or terminated, or exercised, or no longer
qualifies for hedge accounting. Any cumulative gain or loss on the hedging instrument recognized under other comprehensive
income is transferred to the statement of profit and loss when the forecasted transaction occurs or affects profit or loss or
when a hedged transaction is no longer expected to occur.

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Accordingly, the Hedge Reserve (net of tax effects) as at March 31, 2019 stood at a credit balance of ` 185.06 Million as against
a credit balance of ` 16.63 Million as at March 31, 2018. Please refer “Other Equity” under Statement of Changes in Equity in
the consolidated financials for details.
Exchange differences on translating the financial statements of foreign operations
While consolidating the financial statements of subsidiaries (including step down subsidiaries) with the financial statements of
the Parent Company, the assets and liabilities are stated in Indian Rupees by applying the closing exchange rates and income
and expenditure are stated in Indian Rupees by applying the average exchange rates. This creates exchange difference on
consolidation which is accumulated under foreign currency translation reserve.
The balance in the foreign currency translation reserve was ` 265.17 Million as at March 31, 2019 as against ` 151.35 Million as
at March 31, 2018. Please refer “Other Equity” under Statement of Changes in Equity in the consolidated financials for details.
Non-current assets (other than non-current financial assets)
The Non-current assets (other than non-current financial assets) as at March 31, 2019 stood at ` 4,323.53 Million as against
` 5,173.88 Million as at March 31, 2018. The details are as below:
(In ` Million)
Particulars As at March 31, 2019 As at March 31, 2018
Property, Plant and Equipment 2,331.24 2,581.30
Capital work-in-progress 12.10 7.71
Goodwill 81.24 76.61
Other Intangible assets 1,595.41 2,463.54
Intangible assets under development 303.54 44.72
TOTAL 4,323.53 5,173.88
Property, Plant and Equipment
The gross block of Property, Plant and Equipment amounted to ` 7,390.19 Million as at March 31, 2019 as against ` 7,323.90
Million as at March 31, 2018. The increase is primarily because of additional computers / hardware procured for the growing
business needs.
Capital work-in-progress
Capital work-in-progress (Capital WIP) stood at ` 12.10 Million as at March 31, 2019 as against ` 7.71 Million as at March 31, 2018.
Goodwill
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 acquired Company. The Goodwill as at March 31, 2019 was ` 81.24 Million as
against ` 76.61 Million as at March 31, 2018. The difference represents exchange fluctuation.
Other Intangible assets
The gross block of intangible fixed assets amounted to ` 6,784.16 Million as at March 31, 2019 as against ` 6,406.11 Million as at
March 31, 2018. The additions pertain to software and acquired contractual rights.
Intangible assets under development
The amount of intangible assets under development was ` 303.54 Million as against ` 44.72 Million as on March 31, 2018. The
net additions include amounts recognized on acquisition of Herald Technologies Inc. in accordance with Ind AS 103, Business
Combinations and the development of Intellectual Property Rights for one of our business partners.
Non-current financial assets
The non-current financial assets at March 31, 2019 were ` 4,859.00 Million as against ` 3,061.20 Million as at March 31, 2018.
The details of non-current financial assets are as follows:
(In ` Million)
Particulars As at March 31, 2019 As at March 31, 2018
Investments 4,345.71 2,881.04
Loans 164.00 142.73
Other non-current financial assets 349.29 37.43
Total 4,859.00 3,061.20

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Non-current financial assets: Investments

The total non-current investments as on March 31, 2019 stood at ` 4,345.71 Million as against ` 2,881.04 Million in the previous
year. The net increase in non-current investments is mainly due to additional investments in bonds ` 975.88 Million that
are intended to be held for more than 12 months and mutual funds ` 317.42 Million. Please refer Note 7 of the consolidated
financials for details.
Non-current financial assets: Loans
The non-current loans as at March 31, 2019 were ` 164.00 Million as compared to ` 142.73 Million as at March 31, 2018. Please
refer Note 8 of the consolidated financials for details.
Other non-current financial assets
Other non-current financial assets consist of the non-current deposits with banks and the financial institutions including
interest accrued on these deposits. The total of such deposits amounted to ` 349.29 Million as at March 31, 2019 as against
` 37.43 Million as at March 31, 2018. The increase is mainly on account of classification of the deposits of ` 130.00 Million with
IL&FS Ltd and ` 300.00 Million with IL&FS Financial Services Ltd as Other non-current financial assets. Please refer Note 9 of
the consolidated financials for details.
Deferred Tax Assets and Deferred Tax Liabilities
The deferred tax assets (after set off) on March 31, 2019 amounted to ` 405.05 Million as against ` 371.60 Million as on
March 31, 2018.
The increase is mainly because of the increase in deferred tax asset on temporary tax differences in respect of certain provisions
made in the current year and allowable in the subsequent years.
Note 10 of the consolidated financials gives component-wise details of deferred tax balances.
Other non-current assets
Other non-current assets include capital advance and other advances recoverable in cash or kind. The amount of Other non-
current assets was ` 68.31 Million as at March 31, 2019 as against ` 91.57 Million as at March 31, 2018.
Current Financial Assets
(In ` Million)

Particulars As at March 31, 2019 As at March 31, 2018

Investments 3,295.53 5,916.31
Trade receivables (net) 4,923.01 4,847.40
Cash and cash equivalents 1,739.45 1,343.72
Other bank balances 4,984.39 1,070.25
Loans 7.87 6.63
Other current financial assets 2,377.00 2,758.25
TOTAL 17,327.25 15,942.56
Current Investments
As per the Investment Policy approved by the Board of Directors, the Company invests its surplus funds in liquid and debt
schemes and fixed maturity plans of some reputed mutual funds with a focus on capital preservation, liquidity and optimization
of returns.
Investment in mutual funds classified under current investments stood at ` 3,295.53 Million as at March 31, 2019 as compared
to ` 5,916.31 Million as at March 31, 2018.
Trade Receivables
Trade receivables (net of provision for doubtful debts) amounted to ` 4,923.01 Million as at March 31, 2019 as against ` 4,847.40
Million as at March 31, 2018.

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The following table provides the age-wise analysis of Trade Receivables (Net of provision for doubtful debts) as on
March 31, 2019.

Particulars As At March 31, 2019 As At March 31, 2018

` Million As % ` Million As %
Not Due 4,180.82 84.92% 3,350.59 69.12%
Due upto 30 days 320.33 6.51% 774.61 15.98%
Due 31 – 60 days 153.87 3.13% 347.81 7.18%
Due 61 – 90 days 118.34 2.40% 249.37 5.14%
Due 91 – 120 days 70.02 1.42% 50.33 1.04%
Due over 120 days (net) 79.63 1.62% 74.69 1.54%
Total 4,923.01 100% 4,847.40 100%
The Company uses a provisioning policy approved by the Board of Directors to compute the expected credit loss allowance for
trade receivables. The policy takes into account available external and internal credit risk factors and the Company’s historical
experience for customers Further, the policy provides for the provisioning of all customer invoices which are overdue for a
period of more than 180 days.
Provision for doubtful debts decreased to ` 134.54 Million as at March 31, 2019 from ` 146.97 Million as at March 31, 2018. Please
refer Note 13 of the consolidated financials for details.
DSO as at March 31, 2019 was improved to 63 days as against 66 days as at March 31, 2018.
Cash and cash equivalents
Cash and cash equivalents include bank balances and cash and cheques on hand. Cash and cash equivalents increased to
` 1,739.45 Million as at March 31, 2019 from ` 1,343.72 Million as at March 31, 2018.
Other bank balances
Deposits with banks having original maturity of more than twelve months including interest thereon and the balance on
unpaid dividend account are considered under other bank balances. These deposits amounted to ` 4,982.12 Million as at
March 31, 2019 as compared to ` 1,068.84 Million as at March 31, 2018. The deposits have increased because of additional
deposits made during the year and increase in interest accrued on the deposits. The balance on unpaid dividend account was
` 2.27 Million as at March 31, 2019 as against ` 1.41 Million as at March 31, 2018. Please refer Note 15 of the consolidated
financials for details.
Loans
Current loans include unsecured short-term loans granted and the security deposits with short term maturity. The amount of
current loans as at March 31, 2019 was ` 7.87 Million as against ` 6.63 Million as at March 31, 2018. Please refer Note 16 of the
consolidated financials for details.
Other current financial assets
Other current financial assets were ` 2,377.00 Million as at March 31, 2019 as compared to ` 2,758.25 Million as at
March 31, 2018. Following are the components of other current financial assets:
(In ` Million)

Particulars As at March 31, 2019 As at March 31, 2018

Forward contracts receivable 281.27 42.75
Deposit with financial institutions (including interest accrued) 260.97 1,016.00
Unbilled revenue 1,834.76 1,699.50
Total 2,377.00 2,758.25

The amount of forward contracts receivable represents favourable position (i.e. Mark To Market gain) as at the Balance Sheet
date in respect of the forward contracts entered by Company. The reduction in current Deposits with financial institutions is
mainly on account of classification of Deposits with IL&FS group into Other non-current financial assets. Unbilled revenue
represents revenue recognized in relation to work done until the Balance Sheet date for which billing has not taken place.
Please refer Note 17 of the consolidated financials for details.

Management Discussion and Analysis • 185

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Other Current assets (other than financial assets)

Other Current assets other than financial assets include following:
(In ` Million)

Particulars As at March 31, 2019 As at March 31, 2018

Current tax assets (net) 110.26 113.99
Other current assets 1,387.79 1,563.41
Total 1,498.05 1,677.40
Other current assets include advances recoverable in cash or kind within period of twelve months from the Balance Sheet date
and VAT receivable, Service Tax and GST receivable.
Current ratio was 3.90 as at March 31, 2019 as against 3.56 as at March 31, 2018.
Non-current liabilities:
(In ` Million)

Particulars As at March 31, 2019 As at March 31, 2018

Financial liabilities
- Borrowings (non-current portion) 11.97 16.55
Provisions 252.80 159.75
Total 264.77 176.30

Non-current financial liabilities - Borrowings

Under the scheme of Biotechnology Industry Partnership Program of Department of Biotechnology (DBT), Ministry of Science
and Technology, Government of India, financial aid is given to all the partners involved in the research project undertaken by
the Ministry of Science and Technology in the field of biotechnology. The Company being an industrial partner, the aid is in the
form of a long-term loan at a nominal rate of interest of 2% p.a. Based on the project costs, an amount of ` 21.80 Million has
been sanctioned as a long-term loan. Loan amount outstanding under this scheme amounted to ` 5.46 Million as on March 31,
2019 as against ` 8.19 Million as on March 31, 2018. The loan amount is repayable in ten equal semiannual installments over a
period of five years starting from March 2016.
Under the scheme of NMITLI (New Millennium India Technology Leadership Initiative), the Company has undertaken a project
on the ‘System based Computational Model of Skin’. As a part of this scheme, Council for Scientific and Industrial Research
(CSIR) has granted a financial help in the form of a loan at a nominal rate of interest of 3% p.a. Based on the project costs,
an amount of ` 40.71 Million has been sanctioned as a long-term loan. The loan is repayable in ten equal annual installments
commencing from September 2015. Loan amount outstanding under this scheme amounted to ` 11.09 Million as on March 31,
2019 as against ` 12.94 Million as on March 31, 2018. Please refer Note 19 of the consolidated financials for details.
The interest of ` 0.17 Million (previous year ` 0.78 Million) is accrued but not due on these loans. Out of the total outstanding
balance of ` 16.72 Million, the balance of ` 4.75 Million is repayable within twelve months from the Balance Sheet date and hence,
reclassified to Other Current Financial Liabilities. The reduction in overall balance of borrowings represents the repayment of
borrowings as per the repayment schedule in the agreements.
Debt-equity ratio as at March 31, 2019 was 0.0007 as against 0.001 as at March 31, 2018.
Non-current liabilities - Provisions
The long-term provisions are those provisions which are not expected to be settled within twelve months from the date of the
Balance Sheet. Long term provisions include the liability towards long service award and gratuity payable to the employees. The
total long-term provisions have increased to ` 252.80 Million as at March 31, 2019 as compared to ` 159.75 Million as at March
31, 2018 mainly due to increase in provision for gratuity. The Company provides for gratuity on the basis of actuarial valuation
basis using the projected unit credit method at the reporting date. This provision stood at ` 94.34 Million as at March 31, 2019 as
against ` 16.38 Million as at March 31, 2018. Increase in gratuity is due to deficit in funding of plan asset. The Company expects
to contribute the entire deficit to gratuity fund in financial year 2019-20.
The provision for long service awards has increased from ` 143.37 Million as at March 31, 2018 to ` 158.46 Million as at March
31, 2019. Please refer Note 20 of the consolidated financials for details.

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Current Liabilities
(In ` Million)
Particulars As at March 31, 2019 As at March 31, 2018
Financial liabilities
- Trade payable 1,517.07 1,673.08
- Other financial liabilities 441.93 396.33
Other current liabilities 1,124.27 1,201.02
Provisions 1,686.35 1,599.49
Total 4,769.62 4,869.92

Trade Payables
Trade payables decreased to ` 1,517.07 Million as at March 31, 2019 from ` 1,673.08 Million as at March 31, 2018.
Other current financial liabilities
Other current financial liabilities include capital creditors, current maturity of borrowings including interest thereon, accrued
employee liabilities, unpaid dividend and other contractual liabilities. Other current financial liabilities have increased to
` 441.93 Million as at March 31, 2019 from ` 396.33 Million as at March 31, 2018 mainly due to increase in capital creditors and
in accrued employee liabilities.
The details of major components of other current financial liabilities are shown below:
(In ` Million)
Particulars As at March 31, 2019 As at March 31, 2018
Capital creditors 55.16 32.36
Current maturity of long-term borrowings 4.58 4.58
Current maturity of interest on long-term borrowings 0.17 0.78
Accrued employee liabilities 377.88 357.02
Unpaid dividend 2.27 1.41
Other liabilities 1.87 0.18
Total 441.93 396.33

Other current liabilities

Other current liabilities include unearned revenue, advances from customers and statutory and other liabilities. Unearned
revenue represents the billing in respect of contracts for which the revenue is not recognized. The other current liabilities have
decreased to ` 1,124.27 Million as at March 31, 2019 from ` 1,201.02 Million as at March 31, 2018. The net decrease in other current
liabilities is primarily due to decrease in unearned revenue. Please refer Note 23 of the consolidated financials for details.
Current liabilities: Provisions
The short term provisions denote the employee liabilities and other provisions expected to be settled within a period of twelve
months from the date of the Balance Sheet. The short term provisions were ` 1,686.35 Million as at March 31, 2019 as against
` 1,599.49 Million as at March 31, 2018. The details of the components of short term provisions are given below:
(In ` Million)
Particulars As at March 31, 2019 As at March 31, 2018
Provision for employee Benefits
Gratuity 17.20 (44.77)
Leave encashment 548.87 468.73
Long service awards 19.02 22.31
Other employee benefits 1,101.26 1,153.22
Total 1,686.35 1,599.49
The increase in gratuity liability is due to decrease in funding to plan assets.
Revenue from Operations (Net)
The Company provides product engineering services, and IP-based software products to its global customers. The Company
derives a sizable portion of its revenues from export of software services and products.

Management Discussion and Analysis • 187

 Shaping the future of software driven business

The revenue for the year in USD terms was up by 2.21% at USD 480.97 Million against USD 470.55 Million in the previous
year. In Rupee terms the revenue was ` 33,659.41 Million against ` 30,337.03 Million representing a growth of 10.95% over the
previous year. The rupee depreciated by 8.55% during the year against US Dollar.
Product Engineering Services revenue, comprising 75.08% of total revenue, at USD 361.12 Million (INR 25,278.22 Million) grew
by 3.2% in USD terms and 12% in INR terms, IP led revenue, comprising 24.92% of total revenue, at USD 119.85 Million (INR
8,381.19 Million) was lower by 0.5% in USD terms grew at 7.9% in INR terms.
The share of enterprise revenue to total revenue for the current year has increased to 35.26% as against 34.47% for the
previous year and increase in revenue in absolute terms was 4.6%.
Following is the graphical presentation of the contribution of the segments in the total revenue:

Revenue Shares by Segments ` Million

24,000 22,018 2017-18
21,000 19,371 2018-19

18,000

15,000

12,000
9,760
9,000 8,725

6,000

3,000 2,241 1,881

Technology Services Alliance Accelelrite (Products)

As regards IP led revenue, Alliance segment registered an increase of 12.2% in IP led revenue. Accelerite segment revenue
declined from USD 34.35 Million in FY 2017-18 to USD 26.93 Million in FY 2018-19. This was due to discontinuation of two
products which had completed their life cycle towards the end of the year and longer sales cycle for new products.
Further, in terms of geographical mix of revenue, North American region continued to dominate by contributing 81.7% of the
total revenue. Contribution from India region was 7%, Europe was 8.8% while rest of the World contributed 2.5% of total
revenue. Revenue in INR terms grew by 8.6% from North America, 23.0% from India and 23.1% from the Rest of the World
regions as compared to the previous year.

Revenue Shares by Geographics

2.7% 2.5%
100.0%
7.5% 8.8%
6.3% 7.0%
80.0%

60.0%
83.5% 81.7%

40.0%

20.0%
2017-18 2018-19
North Americas India Europe Rest of the World

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Financial Year
Revenue 2018-19 2017-18 2016-17 2015-16 2014-15
Concentration
Top 1 24.0% 25.9% 28.3% 19.9% 18.4%
Top 5 42.4% 43.9% 44.6% 36.6% 35.8%
Top 10 51.8% 53.5% 53.1% 45.5% 45.2%
High dependence on top customers exposes the Company to risk of vagaries of customers’ business.
The Company has added 2 (two) more customers in the client engagement size of more than $ 3 Million on an annual basis
taking total number of customers to 20 (Twenty) in this category. There is an addition of 4 (four) new customers in the annual
engagement size of $ 1 Million to $ 3 Million making it 57 during the year 2018-19.
Other Income
As explained in Note 26 of the consolidated financials, Other Income consists of income from investment of surplus funds in
the form of dividend from mutual funds, profit on sale of investments, interest on deposits and bonds, foreign exchange gain
and miscellaneous income. Other income has decreased from ` 1,191.01 Million for the year ended March 31, 2018 to ` 876.55
Million for the year ended March 31, 2019. This is primarily due to unfavourable foreign exchange rate movement which has
resulted into exchange loss of ` 243.10 Million for the financial year 2018-19 against exchange gain of ` 586.31 Million for the
financial year 2017-18.
The details of other income are given below:

Particulars Financial year Financial year Change %

2018-19 2017-18
(In ` Million) (In ` Million)
Investment income (including interest, dividend, fair value 765.66 500.71 52.91%
gain/loss and profit on sale of investments)
Foreign exchange gain - 586.31 (100%)
Miscellaneous Income (including Advances and excess 110.89 103.99 6.64%
provisions written back and profit on sale of fixed assets)
Total 876.55 1,191.01 (26.40%)

Personnel Expenses
Personnel Expenses for the year amounted to ` 22,739.98 Million against ` 21,497.09 Million for the previous year, showing an
increase of 5.78%. As a percentage of revenue, these expenses were 67.56% during the year as compared to 70.86% in the
previous year,
The main reason for increase in Personnel Expenses is due to increase in headcount. The utilization of billable headcount
increased to 81.1% as against 79.2% in the previous year. The year also witnessed a shift of some of the onsite work to offshore
for few customers. These were the main reasons for the drop in the expenses as a percentage of revenue.
Please refer Note 27 of the consolidated financial statements for details.
Other Expenses
Operating and other expenses for the year amounted to ` 5,357.03 Million against ` 4,152.68 Million in the previous year. As a
percentage of revenue, the expenses increased to 15.92% from 13.69%.
The main reasons for variations in Operating and other expenses are as below:
• Cost of purchased software licenses and support expenses have increased by ` 539.81 Million primarily due to increase in
procurement of software related to resell business.
• As afore-referred, the Company has incurred a foreign exchange loss of ` 243.10 Million during the year due to unfavourable
foreign exchange rate movement.
• Provision for doubtful deposits in IL&FS Group was made during current year for ` 182.50 Million. Please refer Note 46 of
the consolidated financials for details.
Please refer Note 28 of the consolidated financials for details.

Management Discussion and Analysis • 189

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Profit Before Interest, Tax, Depreciation and Amortization

During the year, the Company reported Profit before interest, tax, depreciation and amortization of ` 6,438.95 Million
representing an increase of 9.54 % over Profit before interest, tax, depreciation and amortization and exceptional item of
` 5,878.27 Million during the previous year. The margin of Profit before interest, tax, depreciation and amortization slightly
decreased to 19.13% during the year from 19.38% in the previous year.
Depreciation and Amortization
The depreciation and amortization for the year amounted to ` 1,572.51 Million as against ` 1,584.87 Million in the previous year
showing a marginal decrease of 0.78%.
Depreciation and amortization as a percentage of revenue was 4.67% for the year against 5.22% for the previous year.
Please refer Note 6.4 of the consolidated financials for details.
Tax expenses
Tax expense consists of current tax and deferred tax.
The Group’s two major tax jurisdictions are India and the United States, though the Group also files tax returns in other
overseas jurisdictions.
The tax expense for the year amounted to ` 1,432.01 Million (including tax charge in respect of earlier years of ` 88.81 Million)
against ` 1,132.80 Million (net of tax credit in respect of earlier years of ` 71.19 Million) in the previous year. The deferred tax
credit for the year was ` 85.41 Million against deferred tax credit of ` 71.07 Million in the previous year.
The total tax expense for the year amounted to ` 1,346.60 Million against ` 1,061.73 Million for the previous year. The Effective
Tax Rate (ETR) for the year amounted to 27.69% as compared to 24.73% in the previous year.
Net Profit after Tax
The Net Profit for the year amounted to ` 3,516.79 Million against ` 3,230.88 Million for the previous year, recording an increase
of 8.85%. The Net Profit margin for the year was 10.45% as compared to 10.65% in the previous year.
Return on net-worth for financial year 2018-19 is 15.00% as compared to 15.19% for the previous year.
Dividend
The total dividend per share for the year was ` 11 per share which includes an interim dividend of ` 8 declared in the January
board meeting and paid in February 2019, and ` 3 per share proposed as final dividend for the year subject to shareholders’
approval. For the previous year, the total dividend was ` 10 per share.
The total appropriation towards dividend for the year was ` 880 Million as against ` 800 Million for the previous year. The total
Dividend Distribution Tax for the year on the above dividend was ` 137.41 Million against ` 150.23 Million for the previous year.
The Company received dividend of INR 211.49 Million from its three subsidiaries i.e. Persistent Systems Pte. Limited, Singapore
and Persistent Systems France SAS, Persistent Systems Malaysia Sdn. Bhd. The Dividend Distribution Tax was paid on the net
dividend paid after deducting the dividend income from subsidiaries. Hence there was reduction in the dividend distribution tax
inspite of higher dividend paid during the year. The dividend payout ratio (including proposed final dividend) for the year was
29.45% as compared to 28.52% for the previous year.
Earnings Per Share (EPS)
Basic and Diluted earnings per share went up to ` 43.99 per share, compared to ` 40.39 per share in the previous year,
recording an increase of 8.91%.

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Report on Risk Management

Overview
At Persistent, risk management is a continuous process to monitor, identify, assess the risk and taking appropriate steps to
reduce risks to an acceptable level. It facilitates identification of suitable controls for either reducing or eliminating those
risks. The main objective is to manage potential risks in order to minimise the negative impact that they may have on the
organization.
Structure of Risk Management
The objective of Enterprise Risk Management Policy at the Company is to develop, implement and continuously improve a risk
management framework. It integrates the process of managing risks into the Company’s overall governance structure.
The risk management framework at Persistent is given below:

Risk Management Risk Owners

Risk Committee of the
Board of Directors Council (CFO and Head (Function and
Board of Directors
of Business Units) Business Heads)

Enterprise Risk Management Policy sets out the objectives and elements of risk management within the organization. The
best risk insurance is prevention. Preventing risks from occurring in business can best be achieved by employee training,
safety checks, equipment maintenance etc. Preventive measures mainly in project management and cyber security are possible
by bringing in the awareness among the employees about the Dos and Donts in identifying these risks much before their
occurrence.
There is a well-established and robust monitoring and alerting mechanism through proactive surveillance by integrated Security
Operations Centre and Network Operations Centre which identify and mitigate information security risks. The Persistent
Risk and Governance team under Information Security and Compliance Group ensures timely communications and incident
management for identified Risks. Awareness campaigns are conducted on a regular basis to cover recent threats, security
incidents and mitigating guidance. InfoSec Awareness Training is part of onboarding of employees and it is a mandatory annual
exercise for all of the Company employees.
At all project execution stages, the project members are briefed on proactively identifying the key risks for the Company
and seriously thinking about the consequences of these risks for which they are responsible. They are also informed about
communicating those risks up or down the organization that demands attention of others.
The primary responsibility for risk management lies at the business level. Part of the role of all the heads of business units is to
ensure risks are managed appropriately. The Risk Management Function forms the second line of defence and independently
assesses all risks. Its report is reviewed by the Risk Management Committee on a quarterly basis which, in turn, reports it to
the Board. The Risk Management Structure of the company consists of Risk Officers, Risk Manager and Risk Management
Committee.
The Risk Management Process includes:
• Identification of key risks and their root causes
• Assessment of risk for its probability and impact
• Prioritization of risks based on its ratings
• Formulation of risk response strategy based on the analysis of business exposure
• Escalation of risk response in a timely manner to facilitate decision making
• Identification of Risk Owners within the area of responsibility
• Monitoring and reporting by the Risk Management Committee of the existence, adequacy and effectiveness of the risks to
the Board of Directors on a quarterly basis.
The Risk Management Process is continuously reviewed in line with the changing risk environment. The process of continuous
evaluation of risks is done on a quarterly basis.
Some of the major risks and measures taken for mitigation of these risks are given below:

Report on Risk Management • 191

 Shaping the future of software driven business

Major Risks Effect of Risk Measures for Risk Mitigation

Restrictions Frequent changes in the legislations • Better monitoring to ensure better compliance in the midst
on account relating to work visa for the US results in of changing laws.
of changing the restrictions in movement of the skilled • Have increased local hiring thereby reducing dependency on
immigration professionals and increase in costs work visa
regulations • Closely monitoring of immigration policy of different
countries
• Offshoring of the work wherever possible
Foreign Impact of volatility in the exchange rate • Constant analysis and review of current economic scenario,
Exchange Risk exchange rate movement and net open position
• Regular consultation with forex risk advisors
• Forward cover on 12-months rolling basis to cover 45% to
70% of net open positions
Information Cyber attack and hacking risks • Continuous education for all the employees and individuals
Security Risks on the Company network.
• Delivery IT environment security being strengthened
• End-point security enhanced
• Next generation firewalls deployed at different locations
Customer High dependence on Top customers • Emphasis on growing business in other areas.
Concentration • Renewed focus on Growth and Solutions team to help build
Risk new offerings
Governance With the global spread of business in • We have local consultants in these countries to take care of
and unknown territories, compliance of the all operational conformity
Compliance regulations in these geographies becomes • Country readiness framework is prepared to identify legal
in New a challenge obligations
Geographies • Global Compliance Software with updates (obtained through
paid subscription) is in place for all major locations across
the globe
Risk Sudden change in investment ratings • Continuous monitoring of the exposures in non-banking
Associated given by rating agencies and a liquidity investments
with Treasury crunch by financial institutions result in • Reduced exposure to NBFCs
Investments treasury loss as it happened in case of
IL&FS investments in recent past
Credit Risk Non-collection / delay in collection of • Structured process of collection has been implemented.
customer dues Regular follow-up process is done for all overdue invoices.
• Monthly collection targets are set-up for all major customers
and collections are tracked against the targets.
• Legal action is initiated against defaulting customers
Risk of Risk of any of the products which the • We are continuously investing in the products and upgrading
Product Company has acquired or developed / enhancing them to extend their road map
Obsolescence getting obsolete due to technology
advancement
Employee Frequent changes in the workforce results • To minimize any impact on business, aggressive hiring has
Attrition in delays in project execution and also helped replenish the pool
increases cost of resources • Initiated special pay package for freshers from campus
• Retention bonus offered in respect of special skills
• Special focus on internal job rotations
IP and Data Extensive use of the company network • Data Governance Policy and Processes are established
Leakage to communicate and access data has • Operations are certified for ISO 27001:2013 Information
increased the risk of data / intellectual Security Management Systems
property leakage • Industry standard data protections including DLP, VPN,
isolated networks and encryption
• Continuous monitoring by 24X7X365 Security Operation
Center (SOC)

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Consolidated
Financials
 Shaping the future of software driven business

Independent Auditors’ 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 (“the Consolidated Financial Statements”) of
Persistent Systems Limited (“the Parent”) and its subsidiaries (the Parent and its subsidiaries together referred to as “the Group”),
and its associate, which comprise the Consolidated Balance Sheet as at 31 March 2019, the Consolidated Statement of Profit and Loss
(including Other Comprehensive Income), the Consolidated Statement of Cash Flows and the Consolidated Statement of Changes in
Equity for the year ended on that date, and a summary of 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
reports of the other auditors on separate financial statements of the subsidiaries, and its associate, referred to in the Other Matters
paragraph below, 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 prescribed under
section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended (“Ind AS”) and other accounting
principles generally accepted in India, of the consolidated state of affairs of the Group as at 31 March 2019, their consolidated profit,
their consolidated total comprehensive income, their consolidated cash flows and their consolidated changes in equity for the year
ended on that date.
Basis for Opinion
We conducted our audit of the Consolidated Financial Statements in accordance with the Standards on Auditing specified under section
143(10) of the Act (SAs). Our responsibilities under those Standards are further described in the Auditor’s Responsibility for the Audit
of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with the Code of Ethics
issued by the Institute of Chartered Accountants of India (ICAI) together with the ethical requirements that are relevant to our audit of
the Consolidated Financial Statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other
ethical responsibilities in accordance with these requirements and the ICAI’s Code of Ethics. We believe that the audit evidence obtained
by us is sufficient and appropriate to provide a basis for our opinion on the Consolidated Financial Statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, 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. We have
determined the matters described below to be key audit matters to be communicated in our report.

Sr. No. Key Audit Matter Auditor’s Response

1 Revenue Recognition – Ind AS 115 Principal Audit Procedures
We assessed the Group’s process to identify the impact of adoption of the
Appropriateness of recognition, measurement, presentation
new revenue accounting standard.
and disclosures of revenues and other related balances in
Our audit approach consisted testing of the design and operating
view of adoption of Ind AS 115 “Revenue from Contracts
effectiveness of the internal controls and substantive testing as follows:
with Customers” (new revenue accounting standard)
• Evaluated the design of internal controls relating to implementation of
The application of the new revenue accounting standard
the new revenue accounting standard.
involves certain key judgements relating to identification
• Selected a sample of continuing and new contracts, and tested the
of distinct performance obligations, determination of
operating effectiveness of the internal control, relating to identification
transaction price of the identified performance obligations,
of the distinct performance obligations and determination of
the appropriateness of the basis used to measure revenue
transaction price. We carried out a combination of procedures
recognized over a period. Royalty income from one of the
involving enquiry and observation, re-performance and inspection of
main customers is accrued as a % of total sales made by
evidence in respect of operation of these controls.
the customer during the period. Calculation of total sales for
• Selected a sample of continuing and new contracts and performed the
the period is finalized by the customer post the period end.
following procedures:
Accrual of royalty revenue thereon is therefore, based on the
• Read, analysed and identified the distinct performance obligations
management’s estimate as of the period end date.
in these contracts.
• Considered the terms of the contracts to determine the transaction
price including any variable consideration to verify the transaction
price used to compute revenue and to test the basis of estimation of
the variable consideration.

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 Shaping the future of software driven business

Additionally, new revenue accounting standard contains • In respect of samples relating to fixed price contracts, progress
disclosures which involves collation of information in respect of towards satisfaction of performance obligation used to compute
disaggregated revenue and periods over which the remaining recorded revenue was verified with actual and estimated efforts
performance obligations will be satisfied subsequent to the from the time recording and budgeting systems. We also tested the
balance sheet date. access and change management controls relating to these systems.
Refer Note 4(k) to the Consolidated Financial Statements. • Performed analytical procedures for reasonableness of revenues
disclosed by type and service offerings.
• We reviewed the collation of information and the logic of the report
generated from the revenue tracking system used to prepare
the disclosure relating to the periods over which the remaining
performance obligations will be satisfied subsequent to the balance
sheet date.
• Samples in respect of revenue recorded for time and material
contracts were tested using a combination of approved time sheets
including customer acceptances, subsequent invoicing and historical
trend of collections and disputes.

2 Provision towards fixed deposits with IL&FS Group: Principal Audit Procedures
The Group had unsecured deposits of ` 430 million with IL&FS • Evaluated the design and implementation of controls over
Group as on balance sheet date. Due to liquidity constraints accounting of critical accounting estimate which included testing of
faced by IL&FS and defaults in repayment till 31 March 2019, provision of impairment for deposit with IL&FS Group.
the management has provided an expected credit loss (ECL) of • We reviewed the basis adopted by the management in estimating
Rs. 182.50 million as of 31 March 2019. Estimation of ECL, in the the ECL and past as well as forward looking information available
present scenario, involves significant amount of judgement. around the matter, against the requirements of applicable Indian
Refer to Note 46 to the Consolidated Financial Statements. Accounting Standards.

3 Accounting estimate - Impairment of investments in Principal Audit Procedures

subsidiaries: • We have tested and evaluated the company’s control for analysis of
Provision towards impairment of investments in the subsidiaries impairment of investment in subsidiaries.
requires significant amount of judgement where the individual • We have assessed subsidiary company’s business plans and future
entity’s net-worth is eroded or there are substantial losses. expected cash flows. Our testing included review of assumptions
used in estimating future expected cash flows and overall
appropriateness of the underlying calculations vis-à-vis past
performance trends.

Information other than the Consolidated Financial Statements and Auditor’s Report thereon
The Parent’s Board of Directors is responsible for the preparation of the other information. The other information comprises the
information included in the Report of the Directors, Report on Corporate Governance, Business Responsibility Report, Management
Discussion and Analysis, and Report on Risk Management (collectively referred as “other information”) but does not include the
Financial Statements and our auditor’s report thereon. Other information is expected to be made available to us after the date of this
auditor’s report.
Management’s Responsibility for the Consolidated Financial Statements
The Parent Company’s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation
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 cash flows and consolidated changes in equity of the Group including
its associate in accordance with the Ind AS and other accounting principles generally accepted in India.
The respective Board of Directors of the companies included in the Group and of 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, its associate
and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making
judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial
controls, that were operating effectively for ensuring accuracy and completeness of the accounting records, relevant to the preparation
and presentation of the Consolidated 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
Directors of the Parent Company, as aforesaid.
In preparing the Consolidated Financial Statements, the respective Board of Directors of the companies included in the Group and of
its associate are responsible for assessing the ability of the Group and of its associate to continue as a going concern, disclosing, as
applicable, matters related to going concern and using the going concern basis of accounting unless the management either intends to
liquidate or cease operations, or has no realistic alternative but to do so.

Consolidated Financials • 195

 Shaping the future of software driven business

The respective Board of Directors of the companies included in the Group and of its associate are responsible for overseeing the
financial reporting process of the Group.
Auditor’s Responsibility for the Audit of the Consolidated Financial Statements
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 SAs will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of these Consolidated Financial Statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the
audit. We also:
• Identify and assess the risks of material misstatement of the 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.
• Obtain an understanding of internal financial 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 Parent
has adequate internal financial controls system in place 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.
• 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 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 auditors’
report. However, future events or conditions may cause the Group and its associate to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the Consolidated Financial Statements, including the disclosures, and
whether the Consolidated Financial Statements represent the underlying transactions and events in a manner that achieves fair
presentation.
• 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 the financial statements of such entities included in the Consolidated Financial
Statements of which we are the independent auditors. For the other entities included in the Consolidated Financial Statements,
which have been audited by 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.
Materiality is the magnitude of misstatements in the Consolidated Financial Statements that, individually or in aggregate, makes it
probable that the economic decisions of a reasonably knowledgeable user of the Consolidated Financial Statements may be influenced.
We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of
our work; and (ii) to evaluate the effect of any identified misstatements in the Consolidated Financial Statements.
We communicate with those charged with governance of the Parent and such other entities included in the Consolidated Financial
Statements of which we are the independent auditors regarding, among other matters, the planned scope and timing of the audit and
significant audit findings that we identify during our audit.
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.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the
audit of the Consolidated 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
The Consolidated Financial Statements include financial statements of all the subsidiaries which reflect total assets of ` 4,035.33
Million, net total assets of ` 1,373.28 Million as at 31 March 2019, total revenue of ` 5,185.66 Million and net cash outflows amounting
to ` 203.07 Million for the year ended on that date, which have been audited by other auditors, M/s Joshi Apte & Co. These financial

196 • Annual Report 2018-19

 Shaping the future of software driven business

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.
The consolidated financial statements also includes the share of net result ` NIL in respect of 1 (One) associate for the year ended
31 March 2019. Financial statements of this associate have not been audited by us. These financial statements are unaudited and have
been furnished to us by the Management and our opinion on the consolidated financial statements, in so far as it relates to the amounts
and disclosures included in respect of these entities is based solely on such unaudited financial statements. In our opinion and according
to the information and explanations given to us by the Management, these financial statements are not material to the Group.
Our opinion on the Consolidated Financial Statements is not modified in respect of the above matters.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act, based on our audit we report 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 purposes 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.
(c) The Consolidated Balance Sheet, the Consolidated Statement of Profit and Loss (including Other Comprehensive Income),
Consolidated Statement of Changes in Equity and the Consolidated Statement of Cash Flow 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 the Ind AS specified under Section 133 of the Act.
(e) On the basis of the written representations received from the directors of the Parent as on 31 March 2019 taken on record
by the Board of Directors of the Parent and the reports of the statutory auditors who are appointed under Section 139 of the
Act, none of the directors of the Parent, is disqualified as on 31 March 2019 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 over financial reporting and the operating effectiveness of
such controls, refer to our separate Report in “Annexure A”, which is based on the auditors’ report of the Parent incorporated
in India. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of internal financial
controls over financial reporting of the Parent company, for the reasons stated therein.
(g) With respect to the other matters to be included in the Auditor’s Report in accordance with the requirements of section 197(16)
of the Act, as amended, in our opinion and to the best of our information and according to the explanations given to us, the
remuneration paid by the Parent to its directors during the year is in accordance with the provisions of section 197 of the Act.
(h) With respect to the other matters to be included in the Auditors’ 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 consolidated Ind AS financial statements disclose the impact of pending litigations on the consolidated financial
position of the Group.
ii. Provision has been made in the Consolidated Financial Statements, as required under the applicable law or accounting
standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts. 
iii. T
 here has been no delay in transferring amounts required to be transferred, to the Investor Education and Protection Fund
by the Parent.
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
(Firm’s Registration No. 117366W/W-100018)

 Hemant M. Joshi
Place: Pune Partner
Date: 27 April 2019 (Membership No. 038019)

Consolidated Financials • 197

 Shaping the future of software driven business

ANNEXURE “A” TO THE INDEPENDENT AUDITOR’S REPORT

(Referred to in paragraph 1 (f) under ‘Report on Other Legal and Regulatory Requirements’ section of our report of even
date)
Report on the Internal Financial Controls Over Financial Reporting 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 the Company as of and for the year ended 31 March
2019, we have audited the internal financial controls over financial reporting of Persistent Systems Limited (hereinafter referred
to as “the Parent”), as of that date.
Management’s Responsibility for Internal Financial Controls
The Board of Directors of the Parent, is 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 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 its
business, including adherence to the Parent’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 Companies Act, 2013.
Auditors’ Responsibility
Our responsibility is to express an opinion on the Parent’s internal financial controls over financial reporting based on our
audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial
Reporting (the “Guidance Note”) issued by the Institute of Chartered Accountants of India and the Standards on Auditing,
prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls.
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 over financial reporting was established and
maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system
over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting
included obtaining an understanding of internal financial controls over financial reporting, 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.
We believe that the audit evidence we have obtained, is sufficient and appropriate to provide a basis for our audit opinion on
the Parent’s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company’s internal financial control over financial reporting 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 control over financial reporting includes 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
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 Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, 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 over financial reporting to future periods are subject to the risk
that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedures may deteriorate.

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 Shaping the future of software driven business

Opinion
In our opinion to the best of our information and according to the explanations given to us, Parent, has, in all material respects, an
adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting
were operating effectively as at 31 March 2019, 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 issued by the Institute of Chartered Accountants of India.

For DELOITTE HASKINS & SELLS LLP

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

 Hemant M. Joshi
Place: Pune Partner
Date: 27 April 2019 (Membership No. 038019)

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Consolidated Financials • 199

 Shaping the future of software driven business

Consolidated Balance Sheet as at March 31, 2019

Notes As at As at
March 31, 2019 March 31, 2018
In ` Million In ` Million
ASSETS
Non-current assets
Property, Plant and Equipment 6.1 2,331.24 2,581.30
Capital work-in-progress 12.10 7.71
Goodwill 6.2 81.24 76.61
Other Intangible assets 6.3 1,595.41 2,463.54
Intangible assets under development 303.54 44.72
4,323.53 5,173.88
Financial assets
- Investments 7 4,345.71 2,881.04
- Loans 8 164.00 142.73
- Other non-current financial assets 9 349.29 37.43
Deferred tax assets (net) 10 405.05 642.01
Other non-current assets 11 68.31 91.57
9,655.89 8,968.66
Current assets
Financial assets
- Investments 12 3,295.53 5,916.31
- Trade receivables (net) 13 4,923.01 4,847.40
- Cash and cash equivalents 14 1,739.45 1,343.72
- Other bank balances 15 4,984.39 1,070.25
- Loans 16 7.87 6.63
- Other current financial assets 17 2,377.00 2,758.25
Current tax assets (net) 185.06 233.50
Other current assets 18 1,387.79 1,563.41
18,900.10 17,739.47
TOTAL 28,555.99 26,708.13
EQUITY AND LIABILITIES
EQUITY
Equity share capital 5 791.19 800.00
Other equity 22,655.61 20,471.99
23,446.80 21,271.99
LIABILITIES
Non- current liabilities
Financial liabilities
- Borrowings 19 11.97 16.55
Provisions 20 252.80 159.75
Deferred tax liabilities (net) 10 - 270.41
264.77 446.71
Current liabilities
Financial liabilities
- Trade payables [(dues of micro and small enterprises: ` 15.63 million 21 1,517.07 1,673.08
(Previous year: ` 3.03 million)]
- Other financial liabilities 22 441.93 396.33
Other current liabilities 23 1,124.27 1,201.02
Provisions 24 1,686.35 1,599.49
Current tax liabilities (net) 74.80 119.51
4,844.42 4,989.43
TOTAL 28,555.99 26,708.13
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 Deloitte Haskins & Sells LLP For and on behalf of the Board of Directors of
Chartered Accountants Persistent Systems Limited
ICAI Firm registration no. 117366W/W-100018

Hemant M. Joshi Dr. Anand Deshpande Kiran Umrootkar

Partner Chairman and Managing Director Director
Membership no. 038019 DIN: 00005721 DIN: 00326672
Sunil Sapre Amit Atre
Executive Director and Company Secretary
Chief Financial Officer Membership No. A20507
DIN: 06475949
Place: Pune Place: Pune
Date: April 27, 2019 Date: April 27, 2019

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Consolidated Statement of Profit and Loss for the year ended March 31, 2019
Notes For the year ended
March 31, 2019 March 31, 2018
In ` Million In ` Million
Income
Revenue from operations (net) 25 33,659.41 30,337.03
Other income 26 876.55 1,191.01
Total income (A) 34,535.96 31,528.04
Expenses
Employee benefits expense 27.1 19,249.53 18,316.46
Cost of professionals 27.2 3,490.45 3,180.63
Finance costs 3.05 0.79
Depreciation and amortization expense 6.4 1,572.51 1,584.87
Other expenses 28 5,357.03 4,152.68
Total expenses (B) 29,672.57 27,235.43
Profit before tax (A - B) 4,863.39 4,292.61
Tax expense (refer note 32)
Current tax 1,343.20 1,203.99
Tax credit in respect of earlier years 88.81 (71.19)
Deferred tax charge / (credit) (85.41) (71.07)
Total tax expense 1,346.60 1,061.73
Net profit for the year (C) 3,516.79 3,230.88
Other comprehensive income
Items that will not be reclassified to profit and loss (D)
- Remeasurements of the defined benefit liabilities / (asset) (net of tax) (47.15) 106.88
(47.15) 106.88
Items that may be reclassified to profit and loss (E)
- Effective portion of cash flow hedge (net of tax) 168.43 (191.81)
- Exchange differences in translating the financial statements of foreign 113.82 77.70
operations
282.25 (114.11)
Total other comprehensive income for the year (D) + (E) 235.10 (7.23)
Total comprehensive income for the year (C) + (D) + (E) 3,751.89 3,223.65
Earnings per equity share 29
[Nominal value of share ` 10 (Previous year: ` 10)]
Basic (In `) 43.99 40.39
Diluted (In `) 43.99 40.39
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 Deloitte Haskins & Sells LLP For and on behalf of the Board of Directors of
Chartered Accountants Persistent Systems Limited
ICAI Firm registration no. 117366W/W-100018

Hemant M. Joshi Dr. Anand Deshpande Kiran Umrootkar

Partner Chairman and Managing Director Director
Membership no. 038019 DIN: 00005721 DIN: 00326672
Sunil Sapre Amit Atre
Executive Director and Company Secretary
Chief Financial Officer Membership No. A20507
DIN: 06475949
Place: Pune Place: Pune
Date: April 27, 2019 Date: April 27, 2019

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 Shaping the future of software driven business

Consolidated Cash Flow Statement for the year ended March 31, 2019
For the year ended
March 31, 2019 March 31, 2018
In ` Million In ` Million
Cash flows from operating activities
Profit before tax 4,863.39 4,292.61
Adjustments for:
Interest income (287.72) (161.54)
Discount allowed 76.92 11.78
Finance costs 3.05 0.79
Dividend income (180.77) (171.25)
Depreciation and amortization expense 1,572.51 1,584.87
Amortization of lease premium 0.58 0.58
Unrealised exchange loss / (gain) (net) 106.54 (123.74)
Change in foreign currency translation reserve (86.85) (28.46)
Exchange loss / (gain) on derivative contracts 20.51 76.73
Exchange (gain) / loss on translation of foreign currency cash and cash 71.36 (100.66)
equivalents
Donations in kind 1.40 0.16
Bad debts 71.18 183.97
Provision for doubtful receivables (net) (4.89) (151.38)
Employee stock compensation expenses - 3.80
Provision for diminution in value of non current investments 182.50 26.96
Provision for diminution in value of investments 13.98 -
Remeasurements of the defined benefit liabilities / (asset) (before tax effects) (70.36) 148.47
Excess provision in respect of earlier years written back (33.89) (18.19)
Advances written back - (23.76)
(Gain) / loss on fair valuation of assets designated as at FVTPL 68.92 18.92
(Profit) / loss on sale of investments (net) (366.09) (186.84)
(Profit) / loss on sale of fixed assets (net) (4.02) (2.40)
Operating profit before working capital changes 6,018.25 5,381.42
Movements in working capital :
(Increase) / Decrease in non-current and current loans (5.55) (1.31)
(Increase) / Decrease in other non current assets (1.68) (3.42)
(Increase) / Decrease in other current financial assets (135.26) 72.03
(Increase) / Decrease in other current assets 175.62 (696.30)
(Increase) / Decrease in trade receivables (322.95) 145.39
Increase / (Decrease) in trade payables and current liabilities (180.13) 305.93
Increase / (Decrease) in provisions 179.91 222.03
Operating profit after working capital changes 5,728.21 5,425.77
Direct taxes paid (net of refunds) (1,405.07) (1,213.84)
Net cash generated from operating activities (A) 4,323.14 4,211.93

Cash flows from investing activities

Payment towards capital expenditure (including intangible assets) (379.06) (654.56)
Proceeds from sale of fixed assets 5.04 3.12
Acquisition of step-down subsidiary net of cash of ` 0.35 million (148.17) (408.35)
(Previous year ` 169.22 million)
Purchase of bonds (1,175.31) (595.43)
Proceeds from sale of bonds 199.43 -
Purchase of non-current investments (144.96) -
Investments in mutual funds (22,418.13) (15,502.22)
Proceeds from sale / maturity of mutual funds 25,010.64 14,290.26
Investments in bank deposits having original maturity over three months (8,094.22) (326.06)
Investments in Deposit with financial institutions (300.00) (595.35)
Maturity of bank deposits having original maturity over three months 4,044.26 42.26
Maturity of deposit with financial institutions 650.35 -
Inter corporate deposits refunded - 0.18
Non current loans placed (16.96) -
Interest received 327.33 101.00
Dividends received 180.77 171.25
Net cash generated from / (used in) investing activities (B) (2,258.99) (3,473.90)

Cash flows from financing activities

(Repayment of) long term borrowings (4.58) (4.58)
Shares bought back (571.41) -
Interest paid (3.66) (1.54)
Dividends paid (879.14) (799.79)
Tax on dividend paid (137.41) (150.23)
Net cash generated / (used in) financing activities (C ) (1,596.20) (956.14)

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Consolidated Cash Flow Statement for the year ended March 31, 2019
For the year ended
March 31, 2019 March 31, 2018
In ` Million In ` Million
Net increase / (decrease) in cash and cash equivalents (A + B + C) 467.95 (218.11)
Cash and cash equivalents at the beginning of the year 1,345.13 1,462.58
Effect of exchange difference on translation of foreign currency cash and cash (71.36) 100.66
equivalents
Cash and cash equivalents at the end of the year 1,741.72 1,345.13
Components of cash and cash equivalents
Cash on hand (Refer note 14) 0.22 0.23
Balances with banks
On current accounts # (Refer note 14) 1,300.93 1,196.91
On saving accounts (Refer note 14) 0.91 0.75
On Exchange Earner's Foreign Currency accounts (Refer note 14) 114.91 145.83
On deposit accounts with original maturity less than three months (Refer note 14) 229.54 -
On Escrow accounts** (Refer note 14) 92.94 -
On unpaid dividend accounts* (Refer note 15) 2.27 1.41
Cash and cash equivalents 1,741.72 1,345.13
# Out of the cash and cash equivalent balance as at March 31, 2019, the Group can utilise ` 2.15 million only towards research
and development activities specified in the agreement. There were no such restrictions for utilisation of the cash and cash
equivalent balance as at March 31, 2018.
* The Group can utilize these balances only towards settlement of the respective unpaid dividend.
**The Group can utilize these balances only towards buy back of equity shares.
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 Deloitte Haskins & Sells LLP For and on behalf of the Board of Directors of
Chartered Accountants Persistent Systems Limited
ICAI Firm registration no. 117366W/W-100018

Hemant M. Joshi Dr. Anand Deshpande Kiran Umrootkar

Partner Chairman and Managing Director Director
Membership no. 038019 DIN: 00005721 DIN: 00326672
Sunil Sapre Amit Atre
Executive Director and Company Secretary
Chief Financial Officer Membership No. A20507
DIN: 06475949
Place: Pune Place: Pune
Date: April 27, 2019 Date: April 27, 2019

Consolidated Financials • 203

 Shaping the future of software driven business

Consolidated Statement of Changes in Equity for the year ended

March 31, 2019
A. Share capital
(Refer note 5)
(In ` Million)

Balance as at April 1, 2018 Changes in equity share capital during the year Balance as at March 31, 2019
(refer note 5d)
800.00 (8.81) 791.19

(In ` Million)

Balance as at April 1, 2017 Changes in equity share capital during the year Balance as at March 31, 2018
800.00 - 800.00

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204 • Annual Report 2018-19

 Consolidated Statement of Changes in Equity for the year ended March 31, 2019
B. Other equity (In ` Million)
Reserves and surplus Items of other
comprehensive income

Securities General Share Gain on Capital Special Retained Effective Exchange Total
premium reserve options bargain redemption Economic earnings portion of differences on
Particulars outstanding purchase reserve Zone cash flow translating
reserve re-investment hedges the financial
reserve statements
of foreign
operations

Balance as at April 1, 2018 1,336.70 9,306.27 90.52 26.39 - - 9,544.13 16.63 151.35 20,471.99
Net profit for the year - - - - - - 3,516.79 - - 3,516.79
Other comprehensive - - - - - - (47.15) 168.43 113.82 235.10
income for the year
Dividend - - - - - - (880.00) - - (880.00)
Tax on dividend - - - - - - (137.41) - - (137.41)
Transfer to general reserve - 1,260.03 - - - - (1,260.03) - - -
Transfer to capital redemption - - - - 8.81 - (8.81) - - -
reserve
Transfer to Special Economic - - - - - 70.00 (70.00) - - -
Zone re-investment reserve
Adjustments towards - 14.23 (14.23) - - - - - - -
employees stock options
Addition on business - - - 0.25 - - - - - 0.25
combination (refer note 45)
Utilised towards buy back of (562.60) - - - - - - - - (562.60)
shares (refer note 5d)
Other changes during the year - (14.58) - 26.07 - - - - - 11.49
Balance as at March 31, 2019 774.10 10,565.95 76.29 52.71 8.81 70.00 10,657.52 185.06 265.17 22,655.61
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Consolidated Financials • 205

 (In ` Million)
Reserves and surplus Items of other
comprehensive income
Securities General Share Gain on Capital Special Retained Effective Exchange Total
premium reserve options bargain redemption Economic earnings portion of differences on
Particulars outstanding purchase reserve Zone cash flow translating
reserve re-investment hedges the financial
reserve statements
of foreign
operations
Balance as at April 1, 2017 1,336.70 7,837.40 187.12 24.25 - - 8,525.07 208.44 73.65 18,192.63

206 • Annual Report 2018-19

Net profit for the year - - - - - - 3,230.88 - - 3,230.88
Other comprehensive income - - - - - - 106.88 (191.81) 77.70 (7.23)
for the year
Dividend - - - - - - (800.00) - - (800.00)
Tax on dividend - - - - - - (150.23) - - (150.23)
Transfer to general reserve - 1,368.47 - - - - (1,368.47) - - -
Employee stock compensation - - 3.80 - - - - - - 3.80
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expenses
Adjustments towards - 100.40 (100.40) - - - - - - -
employees stock options
Other changes during the year - - - 2.14 - - - - - 2.14
Balance as at March 31, 2018 1,336.70 9,306.27 90.52 26.39 - - 9,544.13 16.63 151.35 20,471.99
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 Deloitte Haskins & Sells LLP For and on behalf of the Board of Directors of
Chartered Accountants Persistent Systems Limited
ICAI Firm registration no. 117366W/W-100018

Hemant M. Joshi Dr. Anand Deshpande Kiran Umrootkar

Partner Chairman and Managing Director Director
Membership no. 038019 DIN: 00005721 DIN: 00326672
Sunil Sapre Amit Atre
Executive Director and Company Secretary
Chief Financial Officer Membership No. A20507
DIN: 06475949
Place: Pune Place: Pune
Date: April 27, 2019 Date: April 27, 2019
 Shaping the future of software driven business

Consolidated Statement of Changes in Equity for the year ended March 31, 2019
Nature and purpose of reserves
a) Securities premium reserve
Securities premium reserve is used to record the premium on issue of shares. The reserve is utilised in accordance with
the provisions of Section 52 of the Companies Act, 2013.
b) General reserve
General reserve represents amounts transferred from profit for the period and from Share options outstanding reserve on
exercise / expiry of employee share options. It is a free reserve as per section 2 (43) of the Companies Act, 2013.
c) 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.
d) 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.
e) 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.
f) Special Economic Zone re-investment reserve
The Special Economic Zone re-investment reserve has been created out of the profit in terms of the provisions of Section
10AA(1)(ii) of the Income tax Act, 1961. The reserve should be utilised by the Group for acquiring new plant and machinery
for the purpose of its business in terms of Section 10AA(2) of the Income tax Act, 1961.
g) Cash flow hedge reserve
The cash flow hedge reserve represents the cumulative effective portion of gains or losses arising on changes in fair
value of hedging instruments entered into towards highly probable transactions. Such gains or losses are subsequently
recognised in the statement of profit and loss in the period in which such transaction occurs.
h) 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.

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Consolidated Financials • 207

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Notes Forming Part of Consolidated Financial Statements

1. Nature of operations
Persistent Systems Limited (the “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 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.
Persistent Systems, Inc. (PSI) based in the USA, a wholly owned subsidiary of PSL, is engaged in software product, services
and technology innovation.
Persistent Systems Pte. Ltd. (PS Pte.) based in Singapore, a wholly owned subsidiary of PSL, is engaged in software
development, professional and marketing services.
Persistent Systems France SAS (PSFS) based in France, a wholly owned subsidiary of PSL, is engaged in software products,
services and technology innovation
Persistent Telecom Solutions Inc. (PTSI) based in the USA, a wholly owned subsidiary of Persistent Systems Inc., is engaged
in software products, services and technology innovation in telecom and Product Lifecycle Management domains.
Persistent Systems Malaysia Sdn. Bhd. (PSM) based in Malaysia, a wholly owned subsidiary of PSL, is engaged in software
products and services.
Akshat Corporation (d.b.a. RGen Solutions) based in USA, is a wholly owned subsidiary of Persistent Systems Inc.
Akshat Corporation has been dissolved with effect from December 21, 2018. Persistent Systems Inc, its holding company,
took over all the assets and liabilities of Akshat Corporation on the date of dissolution.
Aepona Holdings Limited (an Ireland based wholly owned subsidiary of Persistent Systems Inc.) operates as the holding
Company of Aepona Group Limited.
Aepona Group Limited, (an Ireland based wholly owned subsidiary of Aepona Holdings Limited) operates as the holding
Company of Aepona Limited and Valista 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 connected devices, and to expose and monetize these APIs.
Valista Limited (an Ireland 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 then contracted between Aepona Limited and
customers. The company is under liquidation.
Persistent Systems Lanka (Private) Limited (a Sri Lanka based wholly owned subsidiary of Valista Limited) has adopted
indirect sales model, with services revenue being billed to Aepona Limited. Sale of services are then contracted between
Aepona Limited and customers.
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 are then contracted
between Persistent Systems Inc. and customers.
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.
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.

208 • Annual Report 2018-19

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Notes forming part of consolidated financial statements (Contd.)

Herald Technologies Inc. (HTI), based in the USA a wholly owned subsidiary of Persistent Systems Inc., is working on
implementation of platforms and related IT services for the healthcare industry.
2. Basis of preparation
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 recognition of assets
acquired under business combinations which have been measured at fair value. Historical cost is generally based on the
fair value of the consideration 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.
Statement of compliance:
In accordance with the notification issued by the Ministry of Corporate Affairs, the Group has adopted Indian Accounting
Standards (referred to as “Ind AS”) notified under the Companies (Indian Accounting Standards) Rules, 2015.
3. Principles of consolidation
The consolidated financial statements of the Company and its subsidiaries (“the Group”) for the year ended March 31, 2019
are prepared in accordance with generally accepted accounting principles applicable in India, and the Indian Accounting
Standard 110 (Ind AS 110) on ‘Consolidated Financial Statements’, notified by Companies (Accounting Standards) Rules,
2015, (“Indian Accounting Standards”) by and to the extent possible in the same format as that adopted by the Company
for its separate financial statements.
The Company consolidates entities which it owns or controls. The consolidated financial statements comprise the financial
statements of the company, its subsidiaries as disclosed below. Control exists when the parent has power over the entity,
is exposed or has rights to variable returns from its involvement with the entity; and has the ability to affect those
returns by using its power over the entity. Power is demonstrated through existing rights that give the ability to direct
relevant activities, those which significantly affect the entity’s returns. Subsidiaries are consolidated from the date control
commences until the date control ceases.
The financial statements of the 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 transactions and balances have been eliminated.
The consolidated financial statements include the share of profit / loss of associate companies, which are accounted for
under the ‘Equity method’. The share of profit / loss of the associate company has been adjusted to the cost of investment
in the associate, as per the ‘Equity method’. An associate is an enterprise in which the investor has significant influence
and which is neither a subsidiary nor a joint venture.
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 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 consolidated financial statements are prepared using uniform accounting policies for like transactions and other
events in similar circumstances and necessary adjustments required for deviations, if any, are made in the consolidated
financial statements. The consolidated financial statements are presented in the same manner as the Company’s separate
financial statements.
The financial statements of the subsidiary companies used in the consolidation are drawn up to the same reporting date
as of the Company.

Consolidated Financials • 209

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Notes forming part of consolidated financial statements (Contd.)

The subsidiary companies considered in consolidated financial statements are as follows:

Ownership Percentage as at Country of

Name of the subsidiary
March 31, 2019 March 31, 2018 incorporation
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
Akshat Corporation (d.b.a. RGen Solutions) - 100% USA
(Dissolved with effect from December 21, 2018)*
Aepona Holdings Limited 100% 100% Ireland
Aepona Group Limited 100% 100% Ireland
Aepona Limited 100% 100% UK
Valista Limited 100% 100% Ireland
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% Israel
Persistent Systems Germany GmbH 100% 100% Germany
PARX Werk AG 100% 100% Switzerland
PARX Consulting GmbH 100% 100% Germany
Herald Technologies Inc** 100% - USA
*Refer Note 42
**Refer note 45

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210 • Annual Report 2018-19

 Notes forming part of consolidated financial statements (Contd.)
The share of subsidiaries in the consolidated net assets, consolidated profit or loss and consolidated other comprehensive income is as follows:
Share in Other
Share in Total Comprehensive
Share in Net assets Share in Profit or (loss) Comprehensive Income
Income
(OCI)
Name of the Company As a % of Amount As a % of Amount As a % of Amount As a % of Amount
consolidated (` million) consolidated (` million) consolidated (` million) consolidated Total (` million)
net assets profit OCI Comprehensive
Income
Parent Company:
Persistent Systems Limited 91.95 18,805.48 184.77 3,150.08 97.79 118.60 178.99 3,268.68
Foreign subsidiaries:
Persistent Systems, Inc. 11.49 2,349.05 (10.25) (174.76) - - (9.57) (174.76)
Persistent Systems Pte. Ltd. 1.36 277.43 0.69 11.80 - - 0.65 11.80
Persistent Systems France SAS 0.80 162.71 2.54 43.37 - - 2.37 43.37
Persistent Telecom Solutions Inc. (1.10) (225.16) 1.44 24.60 - - 1.35 24.60
Persistent Systems Malaysia Sdn. Bhd. 1.72 351.36 7.24 123.41 - - 6.76 123.41
Akshat Corporation (d.b.a. RGen Solutions) - - (0.05) (0.92) - - (0.05) (0.92)
Aepona Holdings Limited - - - - - - - -
Aepona Group Limited (6.56) (1,341.96) (79.82) (1,360.89) - - (74.52) (1,360.89)
Aepona Limited (2.11) (431.09) (5.68) (96.85) - - (5.30) (96.85)
Valista Limited 1.20 245.48 0.88 14.96 - - 0.82 14.96
Persistent Systems Lanka (Private) Limited 0.68 139.78 2.03 34.61 2.21 2.68 2.04 37.29
Persistent Systems Israel Ltd. 0.55 111.90 1.65 28.11 - - 1.54 28.11
Persistent Systems Mexico, S.A. de C.V. (0.06) (11.78) (1.31) (22.29) - - (1.22) (22.29)
Persistent Systems Germany GmbH 0.06 11.87 (0.89) (15.19) - - (0.83) (15.19)
PARX Werk AG 0.28 56.36 0.88 15.00 - - 0.82 15.00
PARX Consulting GmbH (0.20) (39.70) (3.51) (59.88) - - (3.28) (59.88)
Herald Technologies Inc (0.06) (10.09) (0.61) (10.29) - - (0.57) (10.29)
Subtotal 100.00% 20,451.64 100.00% 1,704.87 100.00% 121.28 100.00% 1,826.15
Associate:
Klisma e-Services Private Limited - - - - - - - -
FCTR 113.82 113.82
Consolidation adjustments 2,995.16
Amortization of Intangibles recognized on (106.74) (106.74)
Business Combination
Adjustment for eliminating margin on cost 13.83 13.83
transfer for capitalization
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DTA on items recognised on consolidation 1.96 1.96

Dividend from subsidiaries (211.49) (211.49)
Others 2,114.36 2,114.36

Consolidated Financials • 211

Total 23,446.80 3,516.79 235.10 3,751.89
 Shaping the future of software driven business

Notes forming part of consolidated financial statements (Contd.)

4. Summary of significant accounting policies
(a) Use of estimates
The preparation of the consolidated financial statements in conformity with Ind AS requires the management to make
judgments, estimates and assumptions that affect the reported amounts of revenue, expenses, assets and liabilities and
disclosure of contingent liabilities at the end of year. Although these estimates are based on the management’s best
knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes
requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.
Critical accounting estimates
i. Revenue recognition
The Group uses the percentage-of-completion method in accounting for its 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 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 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 report 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.
ii. 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.
iii. Intangible assets and contingent consideration in business combinations
Business combinations are accounted for using Ind AS 103, Business Combinations. Ind AS 103 requires the
identifiable intangible assets and contingent consideration to be fair valued in order to ascertain the net fair value
of identifiable assets, liabilities and contingent liabilities of the acquiree. Significant estimates are required to be
made in determining the value of contingent consideration and intangible assets. These valuations are conducted by
independent valuation experts.
iv. 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 expected residual
value at the end of its life. The useful lives and residual values of Group’s assets are determined by management
at the time the asset is acquired and reviewed periodically. The lives 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.
v. Impairment of Goodwill
Goodwill is tested for impairment on an annual basis and whenever there is an indication that the recoverable amount
of a cash generating unit is less than its carrying amount based on a number of factors including operating results,
business plans, future cash flows and economic conditions. The recoverable amount of cash generating units is
determined based on higher of value-in-use and fair value less cost to sell. The goodwill impairment test is performed
at the level of the cash-generating unit or groups of cash-generating units which are benefiting from the synergies
of the acquisition and which represents the lowest level at which goodwill is monitored for internal management
purposes. Market related information and estimates are used to determine the recoverable amount. Key assumptions
on which management has based its determination of recoverable amount include estimated long term growth rates,
weighted average cost of capital and estimated operating margins. Cash flow projections take into account past
experience and represent management’s best estimate about future developments.

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Notes forming part of consolidated financial statements (Contd.)

vi. Provisions
Provisions are determined based on the best estimate 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.
vii. Internally generated Intangible assets
During the year, the management continued to assess the recoverability of the Group’s internally generated intangible
assets including those under development. Based on the current revenue generated from these lines of business,
expected future revenue and the basis of amortization followed, the management considers the carrying value of the
these intangible assets as recoverable.
(b) Property, Plant and Equipment
Property, Plant and Equipment are stated at cost, less accumulated depreciation and accumulated impairment losses, if
any. The cost comprises the purchase price and directly attributable costs of bringing the asset to its working condition for
its intended use. Any trade discounts and rebates are deducted in arriving at the purchase price. Capital work-in-progress
includes cost of Property, Plant and Equipment that are not ready to be put to use.
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 Group. 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.
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. 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.
Gains or losses arising from disposal of an intangible asset are measured as the difference between the net disposal
proceeds and the carrying amount of the asset and are recognized in the statement of profit and loss when the asset is
disposed.
Research and development cost
Research costs are expensed as incurred. Development expenditure incurred on an individual project is recognized as an
intangible asset when the Group can demonstrate:
- technical feasibility of completing the intangible asset so that it will be available for use or sale;
- its intention to complete the asset;
- its ability to use or sell the asset;
- how the asset will generate probable future economic benefits;
- the availability of adequate resources to complete the development and to use or sell the asset; and
- the ability to measure reliably the expenditure attributable to the intangible asset during development.
Such development expenditure, until capitalization, is reflected as intangible assets under development.
Following the initial recognition, internally generated intangible assets are carried at cost less accumulated amortization
and accumulated impairment losses, if any. Amortization of internally generated intangible asset begins when the
development is complete and the asset is available for use.
(d) Business combinations
Business combinations are accounted for using the acquisition method under the provisions of Ind AS 103 - Business
Combinations.

Consolidated Financials • 213

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Notes forming part of consolidated financial statements (Contd.)

The cost of an acquisition is measured at the fair value of the assets acquired and liabilities incurred or assumed on the
date of acquisition, which is the date on which control is transferred to the Group. The cost of acquisition also includes the
fair value of contingent consideration, if any. Identifiable assets acquired and liabilities and contingent liabilities assumed
in a business combination are measured initially at their fair value on the date of acquisition.
Transaction costs that the Group incurs in connection with a business combination are expensed as incurred.
(e) 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 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. Goodwill is measured at cost less accumulated impairment losses.
(f) 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
*For these classes of assets, based on internal assessment and independent technical evaluation carried out by external
valuers the management believes that the useful lives as given above best represent the period over which the management
expects to use these assets. Hence the useful lives of these assets are different from the useful lives as prescribed under
Part C of Schedule II of the Companies Act 2013.
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 commencing from the day the
asset is made available for use.
(g) Financial instruments
i) Financial assets
Initial recognition and measurement
Financial assets are initially measured at fair value. Transaction costs that are directly attributable to the acquisition
of financial assets (other than financial assets at fair value through profit or loss) are added to the fair value of the
financial assets on initial recognition. Transaction costs directly attributable to the acquisition of financial assets at
fair value through profit or loss are recognised immediately in profit or loss.
Subsequent measurement
For the purpose of subsequent measurement, financial assets are classified as:
- 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.

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Notes forming part of consolidated financial statements (Contd.)

- 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 assets at amortized cost or as
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.
- Forward exchange contracts not intended for trading or speculation purposes, classified as derivative financial
instruments
As per the accounting principles laid down in Ind AS 109 – “Financial Instruments” relating to cash flow hedges,
derivative financial instruments which qualify for cash flow hedge accounting are fair valued at balance sheet date and
the effective portion of the resultant loss / (gain) is debited / (credited) to the hedge reserve under other comprehensive
income and the ineffective portion is recognized to the statement of profit and loss. Derivative financial instruments
are carried as forward contract receivable when the fair value is positive and as forward contract payable when the fair
value is negative.
Changes in the fair value of derivative instruments that do not qualify for hedge accounting are recognized in the
statement of profit and loss as they arise.
Hedge accounting is discontinued when the hedging instrument expires or is sold, or terminated, or exercised, or no
longer qualifies for hedge accounting. Any cumulative gain or loss on the hedging instrument recognized under other
comprehensive income is transferred to the statement of profit and loss when the forecasted transaction occurs or
affects profit or loss or when a hedged transaction is no longer expected to occur.
Derecognition
The Group derecognizes a financial asset when the contractual rights to the cash flows from the asset expire, or when
it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party.
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.
ii) Financial liabilities
Initial recognition and measurement
Financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the issue
of financial liabilities (other than financial liabilities at fair value through profit or loss) are deducted from the fair
value of the financial liabilities on initial recognition. Transaction costs directly attributable to the issue of financial
liabilities at fair value through profit or loss are recognised immediately in profit or loss.
Subsequent measurement
For the purpose of subsequent measurement, financial liabilities are classified as:
- Financial liabilities at amortized cost
Financial liabilities such as loans and borrowings are subsequently measured at amortized cost using the effective
interest rate method. The change in measurements are recognized as finance costs in the statement of profit and
loss.
- 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 as at fair value through profit or loss if the recognition criteria as per Ind AS 109 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

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income. All other changes in fair value of liabilities designated as FVTPL are recognized in the statement of profit and
loss. The Group has not designated any financial liability as at FVTPL.
Derecognition
The Group derecognises financial liabilities when the Group’s obligations are discharged, cancelled or have expired.
The difference between the carrying amount of the financial liability derecognised and the consideration paid and
payable is recognised in profit or loss.
(h) Impairment
i) 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 Group expects to receive, discounted at the original effective interest rate.
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 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.
ii) Non-financial assets
The carrying amounts of Property, Plant and Equipment and Goodwill are reviewed at each balance sheet date or
whenever there is any indication of impairment based on internal/external factors. If any indications exist, the Group
estimates the asset’s recoverable amount.
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. An impairment loss is recognised in the statement of profit and loss.
Recoverable amount of intangible under development that is not yet available for use is estimated at least at each
financial period / year end even if there is no indication that the asset is impaired.
(i) Borrowing costs
Borrowing cost includes interest, 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 year they occur.
Amendment to Ind AS 23 Borrowing costs: The amendments clarify that if any specific borrowing remains outstanding
after the related asset is ready for its intended use or sale, that borrowing becomes part of the funds that an entity
borrows generally when calculating the capitalisation rate on general borrowings. The Group does not expect any impact
related to this amendment.
(j) Leases
Where the Group is a lessee
Leases, where the lessor effectively retains substantially all the risks and benefits of ownership of the leased item, are
classified as operating leases.
Operating lease payments are recognized as an expense in the statement of profit and loss as per the terms of the lease
agreements.
Ind AS 116 Leases: On March 30, 2019, Ministry of Corporate Affairs has notified Ind AS 116, Leases. Ind AS 116 will replace
the existing leases Standard, Ind AS 17 Leases, and related Interpretations. The Standard sets out the principles for the
recognition, measurement, presentation and disclosure of leases for both parties to a contract i.e., the lessee and the

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lessor. Ind AS 116 introduces a single lessee accounting model and requires a lessee to recognize assets and liabilities for
all leases with a term of more than twelve months, unless the underlying asset is of low value. Currently, operating lease
expenses are charged to the statement of Profit & Loss. The Standard also contains enhanced disclosure requirements for
lessees. Ind AS 116 substantially carries forward the lessor accounting requirements in Ind AS 17.
The effective date for adoption of Ind AS 116 is annual periods beginning on or after April 1, 2019. The standard permits
two possible methods of transition:
• Full retrospective – Retrospectively to each prior period presented applying Ind AS 8 Accounting Policies, Changes in
Accounting Estimates and Errors
• Modified retrospective – Retrospectively, with the cumulative effect of initially applying the Standard recognized at the
date of initial application.
Under modified retrospective approach, the lessee records the lease liability as the present value of the remaining lease
payments, discounted at the incremental borrowing rate and the right of use asset either as:
• Its carrying amount as if the standard had been applied since the commencement date, but discounted at lessee’s
incremental borrowing rate at the date of initial application or
• An amount equal to the lease liability, adjusted by the amount of any prepaid or accrued lease payments related to that
lease recognized under Ind AS 17 immediately before the date of initial application.
Certain practical expedients are available under both the methods.
On completion of evaluation of the effect of adoption of Ind AS 116, the Group is proposing to use the ‘Modified Retrospective
Approach’ for transitioning to Ind AS 116, and take the cumulative adjustment to retained earnings, on the date of initial
application (April 1, 2019). Accordingly, comparatives for the year ended March 31, 2019 will not be retrospectively adjusted.
The Group has elected certain available practical expedients on transition.
The effect of adoption as on transition date would majorly result in an increase in Right of use asset approximately by
` 611.38 million and an increase in lease liability approximately by ` 764.46 million.
(k) Revenue recognition
Revenue is measured at the fair value of the consideration received or receivable taking into account the amount of any
trade discounts and volume rebates allowed by the Group. Revenue is recognized to the extent it is probable that the
economic benefits will flow to the Group and the revenue can be reliably measured. The following specific recognition
criteria must also be met before revenue is recognized:
(i) Income from software services
Effective April 1, 2018, the Group adopted Ind AS 115 “Revenue from Contracts with Customers” using the cumulative
catch-up transition method, applied to contracts that were not completed as of April 1, 2018. In accordance with the
cumulative catch-up transition method, the previous year’s amounts have not been retrospectively adjusted. The
following is a summary of new and/or revised significant accounting policies related to revenue recognition. The
effect on adoption of Ind AS 115 was insignificant.
The Group derives revenues primarily from IT services comprising of software development and related services and
from the licensing of software products.
Revenue is recognized upon transfer of control of promised products or services to customers in an amount that
reflects the consideration expected to receive in exchange for those products or services.
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.
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.

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The Group has applied the principles under Ind AS 115 to account for revenues from these performance obligations.
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.
The Group accounts for volume discounts and pricing incentives to customers as a reduction of revenue based on the
proportionate allocation of the discounts amount to each of the underlying performance obligation that corresponds
to the progress by the customer towards earning the discount. Also, when the level of discount varies with increases
in levels of revenue transactions, the Group recognizes the liability based on its estimate of the customer’s future
purchases. If it is probable that the criteria for the discount will not be met, or if the amount thereof cannot be
estimated reliably, then discount is not recognized until the payment is probable and the amount can be estimated
reliably. The Group recognizes changes in the estimated amount of obligations for discounts in the period in which
the change occurs.
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 Service Tax, value added taxes (VAT) on behalf of the government and, therefore, these
are not economic benefits flowing to the Group. Hence, they are excluded from revenue.
Revenue from time and material engagements is recognized on time proportion basis as and when the services are
rendered in accordance with the terms of the contracts with customers.
(ii) Interest
Interest income is recognized on a time proportion basis taking into account the carrying amount and the effective
interest rate. Interest income is included under the head ‘Other income’ in the statement of profit and loss.
(iii) 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.
(l) 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.
(m) Foreign currency translation
Foreign currency transactions and balances
Initial recognition
Foreign currency transactions are recorded in the respective functional currencies of the entities in the Group, by applying
to the foreign currency amount the exchange rate between the functional currency of each individual entity and the
foreign currency at the date of the transaction.
Conversion
Foreign currency monetary items are reported 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.

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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 year in which
they arise.
Translation of foreign operations
The Group presents the financial statements in INR which is the functional currency of the parent company.
The assets and liabilities of a foreign operation are translated into the reporting currency (INR) at the exchange rate
prevailing at the reporting date. Their statement of profit and loss are translated at exchange rates prevailing at the dates
of transactions or weighted average rates, where such rates approximate the exchange rate at the date of transaction.
The exchange differences arising on translation are accumulated in the foreign currency translation reserve under other
comprehensive income. On disposal of a foreign operation, the accumulated foreign currency translation reserve relating
to that foreign operation is recognized in the statement of profit and loss.
(n) Retirement and other employee benefits
(i) 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 basic salary of the eligible 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 Group
has no obligation, other than the contribution payable to the provident fund.
(ii) Gratuity
Gratuity is a defined benefit obligation plan operated by the Group for its employees covered under Group Gratuity
Scheme. The cost of providing benefit under gratuity plan is determined on the basis of actuarial valuation using the
projected unit credit method at the reporting date and are charged to the statement of profit and loss, except for
the remeasurements, comprising of actuarial gains and losses which are 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.
(iii) 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.
(iv) 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
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. 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 for twelve months after the reporting date.
(v) 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.

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Amendment to Ind AS 19: plan amendment, curtailment or settlement- On March 30, 2019, Ministry of Corporate
Affairs issued amendments to Ind AS 19, ‘Employee Benefits’, in connection with accounting for plan amendments,
curtailments and settlements.
The amendments require an entity:
• to use updated assumptions to determine current service cost and net interest for the remainder of the period after
a plan amendment, curtailment or settlement; and
• to recognise in profit or loss as part of past service cost, or a gain or loss on settlement, any reduction in a surplus,
even if that surplus was not previously recognised because of the impact of the asset ceiling.
Effective date for application of this amendment is annual period beginning on or after April 1, 2019. The Group does
not expect any impact on account of this amendment.
(o) 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. Current income tax relating to items recognized directly in equity
is recognized in equity and not in statement of profit and loss.
Deferred income taxes reflect the impact of temporary differences between tax base of assets and liabilities and their
carrying amounts. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at
the reporting date.
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 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 holiday period. Deferred tax in respect of temporary differences which reverse after the
tax holiday period is recognized in the year in which the temporary differences 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 equity.
Minimum alternate tax (MAT) paid in a year is charged to the statement of profit and loss as current tax. MAT credit
available is recognized as an asset only to the extent that there is convincing evidence that the Group will pay normal
income tax during the period, i.e., the period for which MAT credit is allowed to be carried forward. In the year in which
the Group recognizes MAT credit as an asset in accordance with the Guidance Note on Accounting for Credit Available
in respect of Minimum Alternative Tax under the Income-tax Act, 1961, the said asset is created by way of credit to the
statement of profit and loss and shown as “MAT Credit Entitlement.” The Group reviews the “MAT credit entitlement”
asset at each reporting date and writes down the asset to the extent the Group does not have convincing evidence that it
will pay normal tax during the specified period.
Ind AS 12 Appendix C, Uncertainty over Income Tax Treatments: On March 30, 2019, Ministry of Corporate Affairs
has notified Ind AS 12 Appendix C, Uncertainty over Income Tax Treatments which is to be applied while performing the

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determination of taxable profit (or loss), tax bases, unused tax losses, unused tax credits and tax rates, when there is
uncertainty over income tax treatments under Ind AS 12. According to the appendix, companies need to determine the
probability of the relevant tax authority accepting each tax treatment, or group of tax treatments, that the companies
have used or plan to use in their income tax filing which has to be considered to compute the most likely amount or the
expected value of the tax treatment when determining taxable profit (tax loss), tax bases, unused tax losses, unused tax
credits and tax rates.
The standard permits two possible methods of transition - i) Full retrospective approach – Under this approach, Appendix C
will be applied retrospectively to each prior reporting period presented in accordance with Ind AS 8 – Accounting Policies,
Changes in Accounting Estimates and Errors, without using hindsight and
ii) Retrospectively with cumulative effect of initially applying Appendix C recognized by adjusting equity on initial
application, without adjusting comparatives.
The effective date for adoption of Ind AS 12 Appendix C is annual periods beginning on or after April 1, 2019.
The Group will adopt the standard on April 1, 2019 and has decided to adjust the cumulative effect in equity on the date of
initial application i.e. April 1, 2019 without adjusting comparatives.
The effect on adoption of Ind AS 12 Appendix C would be insignificant in the consolidated financial statements.
Amendment to Ind AS 12 – Income taxes: On March 30, 2019, Ministry of Corporate Affairs issued amendments to the
guidance in Ind AS 12, ‘Income Taxes’, in connection with accounting for dividend distribution taxes.
The amendment clarifies that an entity shall recognise the income tax consequences of dividends in profit or loss, other
comprehensive income or equity according to where the entity originally recognised those past transactions or events.
Effective date for application of this amendment is annual period beginning on or after April 1, 2019. The Group is currently
evaluating the effect of this amendment on the standalone financial statements.
(p) 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
 nallocated items include general corporate income and expense items which are not allocated to any business
U
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 as these items are used interchangeably between
segments and the Group is of the view that it is not practical to reasonably allocate these items to individual segments
and an ad-hoc allocation will not be meaningful.
(iv) Inter-segment transfers
There are no inter-segments transactions.
(v) Segment accounting policies
The Group prepares its segment information in conformity with accounting policies adopted for preparing and
presenting the financial statements of the Group as a whole.

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(q) Earnings per share (EPS)
 asic earnings per share are calculated by dividing the net profit for the year attributable to equity shareholders by the
B
weighted average number of equity shares outstanding during the year. The weighted average number of equity shares
outstanding during the reporting period is adjusted for events such as bonus issue, bonus element in a rights issue, share
split, and reverse share split (consolidation of shares), if any occurred during the reporting period, that have changed
the number of equity shares outstanding, without a corresponding change in resources. Further, the weighted average
number of equity shares used in computing the basic earnings per share is reduced by the shares held by PSPL ESOP
Management Trust at the balance sheet date, which were obtained by subscription to the shares from finance provided
by the Group.
 or the purpose of calculating diluted earnings per share, the net profit for the year attributable to the equity shareholders
F
and the weighted average number of equity shares outstanding during the year, are adjusted for the effects of all dilutive
potential equity shares.
 he number of shares and potential dilutive equity shares are adjusted retrospectively for all periods presented for
T
any bonus shares issues including for changes effected prior to the approval of the financial statements by the Board
of Directors.
(r) 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 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.
(s) Contingent liabilities
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the
occurrence or non-occurrence of one or more uncertain future events beyond the control of the Group or a present
obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the
obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized
because it cannot be measured reliably.
(t) 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.
(u) Employee stock compensation expenses
Employees of the Group receive remuneration in the form of share based payment transactions, whereby employees
render services as consideration for equity instruments granted (equity-settled transactions).
In accordance with Ind AS 102 – “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 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.
The expense or credit recognized in the statement of profit and loss for a year represents the movement in cumulative
expense recognized as at the beginning and end of that year and is recognized in employee benefits expense. 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.

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5. Share capital

As at March 31, 2019 As at March 31, 2018

In ` Million In ` Million
Authorized shares (No. in million)
2,000.00 2,000.00
200 (Previous year: 200) equity shares of ` 10 each
2,000.00 2,000.00
Issued, subscribed and fully paid-up shares (No. in million)
791.19 800.00
79.12 (Previous year: 80) equity shares of ` 10 each
Issued, subscribed and fully paid-up share capital 791.19 800.00

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, 2019 As at March 31, 2018
No of shares Amount ` No of shares Amount `
Number of shares at the beginning of the year 80.00 800.00 80.00 800.00
Less: Shares bought back 0.88 8.81 - -
Number of shares at the end of the year 79.12 791.19 80.00 800.00

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 proposed by the Board of
Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.
The Parent Company declared an interim dividend of ` 8 per share on the face value of ` 10 each for the Financial Year
2018-19.
In the event of liquidation of the Parent 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.
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 For the period of five years
ended March 31, 2019 ended March 31, 2018
No in Million No in Million
Equity shares allotted on March 12, 2015 as 40.00 40.00
fully paid bonus shares by capitalization of
securities premium ` 400 million
Equity shares bought back 0.88 -

d) Buyback of Equity Shares of the Parent Company:

The Board of Directors of Persistent Systems Limited (“the Parent Company”), at its meeting in January 2019, approved
the buyback of the Parent Company’s fully paid-up equity shares of the face value of ` 10 each from its shareholders/
beneficial owners excluding promoters, promoter group and persons who are in control of the Parent Company, via the
“open market” route through the stock exchanges, for a total amount not exceeding ` 2,250 million (“Maximum Buyback
Size”), and at a price not exceeding ` 750 per Equity Share (“Maximum Buyback Price”).

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The indicative maximum number of Equity Shares bought back at the above maximum price would be 3,000,000. If the
Equity Shares are bought back at a price below the Maximum Buyback Price of ` 750, the actual number of equity shares
bought back could exceed the above indicative Maximum Buyback quantity but will always be subject to the Maximum
Buyback Size.
The Buyback shall be from the open market purchases through the stock exchanges, by the order matching mechanism
except ‘all or none’ order matching system, as provided under the Buyback Regulations.
The Parent Company will fund the buyback from its securities premium account, free reserves and/or such other source
as may be permitted.
The buyback of equity shares through the stock exchanges commenced on February 8, 2019 and is expected to be
completed by August 7, 2019 or reaching the Maximum Buyback Size, whichever is earlier.
During the period from February 8, 2019 to March 31, 2019, 881,098 equity shares were purchased from the stock
exchanges as follows: (a) 368,851 Equity Shares which have been purchased and extinguished as of March 31, 2019; (b)
447,981 Equity hares which have been purchased but not extinguished as of March 31, 2019; and (c) 64,266 shares which
have been purchased but have not been settled and therefore not extinguished as of March 31, 2019. The Parent Company
has completed the extinguishment of remaining Equity Shares of 512,247 on April 9, 2019.
Consequently, the paid-up capital of the Group has been reduced from ` 800.00 million to ` 791.19 million comprising of

79,118,902 Equity Shares of ` 10 each.

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

Name of the shareholder* As at March 31, 2019 As at March 31, 2018

No. in million % Holding No. in million % Holding
Dr. Anand Deshpande jointly with 22.95 29.01 22.93 28.66
Mrs. Sonali Anand Deshpande
* 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.

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224 • Annual Report 2018-19

 Notes forming part of consolidated financial statements (Contd.)
6.1 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, 2018 221.03 2,450.18 2,392.46 86.63 1,408.62 94.84 665.41 4.73 7,323.90
Additions - 0.07 179.46 3.75 22.56 - 8.86 4.66 219.36
Additions through business - - 0.08 - - - 0.03 - 0.11
combination (refer note 45)
Disposals - 0.04 143.23 2.70 22.82 - 0.59 0.95 170.33
Effect of foreign currency (0.56) (2.49) 12.82 1.95 (0.12) (0.61) 6.16 - 17.15
translation from functional
currency to reporting currency
As at March 31, 2019 220.47 2,447.72 2,441.59 89.63 1,408.24 94.23 679.87 8.44 7,390.19
Depreciation and impairment
As at April 1, 2018 - 885.26 2,078.80 62.14 1,097.81 69.78 544.39 4.42 4,742.60
Charge for the year - 98.95 214.59 9.59 92.06 7.66 50.78 0.76 474.39
Additions through business - - 0.02 - - 0.01 - 0.03
combination (refer note 45) -
Disposals - 0.03 142.52 2.40 22.82 - 0.59 0.95 169.31
Effect of foreign currency - (0.77) 9.47 0.80 (0.12) (0.86) 2.72 - 11.24
translation from functional
currency to reporting currency
As at March 31, 2019 - 983.41 2,160.36 70.13 1,166.93 76.58 597.31 4.23 5,058.95
Net block
As at March 31, 2019 220.47 1,464.31 281.23 19.50 241.31 17.65 82.56 4.21 2,331.24
As at March 31, 2018 221.03 1,564.92 313.66 24.49 310.81 25.06 121.02 0.31 2,581.30
* Note: Building includes those constructed on leasehold land:
Shaping the future of software driven business

a) Gross block as on March 31, 2019 ` 1,454.06 million (Previous year ` 1,454.10 million)
b) Depreciation charge for the year ` 58.95 million (Previous year ` 58.45 million)
c) Accumulated depreciation as on March 31, 2019 ` 439.96 million (Previous year ` 381.05 million)

Consolidated Financials • 225

d) Net book value as on March 31, 2019 ` 1,014.10 million (Previous year ` 1,073.05 million)
 Notes forming part of consolidated financial statements (Contd.)

6.1 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, 2017 219.02 2,420.77 2,233.17 76.43 1,373.11 86.38 622.64 4.73 7,036.25

226 • Annual Report 2018-19

Additions - 20.40 189.10 9.97 57.89 1.73 26.66 - 305.75
Additions through business - - 16.83 1.01 3.15 - 13.20 - 34.19
combination
Disposals - - 90.67 1.05 27.00 - 0.58 - 119.30
Effect of foreign currency 2.01 9.01 44.03 0.27 1.47 6.73 3.49 - 67.01
translation from functional
Shaping the future of software driven business

currency to reporting currency

As at March 31, 2018 221.03 2,450.18 2,392.46 86.63 1,408.62 94.84 665.41 4.73 7,323.90
Depreciation and impairment

As at April 1, 2017 - 784.92 1,863.38 52.41 1,026.57 55.86 480.54 4.21 4,267.89
Charge for the year - 98.12 254.08 10.09 94.63 7.85 55.95 0.21 520.93
Additions through business - - 9.95 0.44 2.28 - 5.94 - 18.61
combination
Disposals - - 90.41 0.94 26.64 - 0.59 - 118.58
Effect of foreign currency - 2.22 41.80 0.14 0.97 6.07 2.55 - 53.75
translation from functional
currency to reporting currency
As at March 31, 2018 - 885.26 2,078.80 62.14 1,097.81 69.78 544.39 4.42 4,742.60

Net block
As at March 31, 2018 221.03 1,564.92 313.66 24.49 310.81 25.06 121.02 0.31 2,581.30
 Shaping the future of software driven business

Notes forming part of consolidated financial statements (Contd.)

6.2. Goodwill
(In ` Million)
As at March 31, 2019 As at March 31, 2018
In ` Million In ` Million
Cost
Balance at beginning of year 76.61 76.23
Additional amounts recognised from business combinations occurring - 0.77
during the year
Effect of foreign currency exchange differences 4.63 (0.39)
Balance at end of year 81.24 76.61

6.3. Other Intangible assets

(In ` Million)
Software Acquired Total
contractual rights
Gross block
As at April 1, 2018 2,422.24 3,983.87 6,406.11
Additions 52.38 39.61 91.99
Effect of foreign currency translation from 100.96 185.10 286.06
functional currency to reporting currency
As at March 31, 2019 2,575.58 4,208.58 6,784.16

Amortization
As at April 1, 2018 2,076.02 1,866.55 3,942.57
Charge for the year 319.05 779.07 1,098.12
Effect of foreign currency translation from functional currency to 84.45 63.61 148.06
reporting currency
As at March 31, 2019 2,479.52 2,709.23 5,188.75

Net block
As at March 31, 2019 96.06 1,499.35 1,595.41
As at March 31, 2018 346.22 2,117.32 2,463.54
(In ` Million)
Software Acquired Total
contractual rights
Gross block
As at April 1, 2017 2,385.43 2,980.69 5,366.12
Additions 20.11 493.75 513.86
Additions through business combination - 489.16 489.16
Effect of foreign currency translation from 16.70 20.27 36.97
functional currency to reporting currency
As at March 31, 2018 2,422.24 3,983.87 6,406.11
Amortization
As at April 1, 2017 1,724.63 1,126.44 2,851.07
Charge for the year 334.64 729.30 1,063.94
Effect of foreign currency translation from 16.75 10.81 27.56
functional currency to reporting currency
As at March 31, 2018 2,076.02 1,866.55 3,942.57

Net block
As at March 31, 2018 346.22 2,117.32 2,463.54

Consolidated Financials • 227

 Shaping the future of software driven business

Notes forming part of consolidated financial statements (Contd.)

6.4. Depreciation and amortization
(In ` Million)
For the year ended
March 31, 2019 March 31, 2018
On Property, Plant and Equipment 474.39 520.93
On other intangible assets 1,098.12 1,063.94
1,572.51 1,584.87

7. Non-current financial assets : Investments (refer note 33)

As at As at
March 31, 2019 March 31, 2018
In ` Million In ` Million
Investments carried under equity accounting method
Unquoted Investments
Investments in equity instruments
In associates
Klisma e-Services Private Limited [Holding 50%. (Previous year 50%)]
0.005 million ( Previous year : 0.005 million) shares of ` 10 each, fully paid up 0.05 0.05
Less : Impairment of non-current unquoted investments (0.05) (0.05)
- -
Total investments carried under equity accounting method (A) - -
Investments carried at amortised cost
Quoted Investments
In bonds 2,088.35 1,112.47
[Market value ` 2,120.86 million (Previous year ` 1,139.71 million)]
Add: Interest accrued on bonds 68.33 33.64
Total investments carried at amortised cost (B) 2,156.68 1,146.11
Designated as fair value through profit and loss
Quoted Investments
- Investments in mutual funds
Fair value of long term mutual funds (Refer Note 7a) 1,974.91 1,657.49
1,974.91 1,657.49
Unquoted Investments
- 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 13.81 13.49
Less : Impairment of non-current unquoted investments (13.81) (13.49)
- -

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

228 • Annual Report 2018-19

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Notes forming part of consolidated financial statements (Contd.)

As at As at
March 31, 2019 March 31, 2018
In ` Million In ` Million
Investment in Preferred Stock
Hygenx Inc. 13.82 13.03
0.25 million (Previous year : 0.25 million) Preferred stock of $ 0.001 each, fully paid up
Less : Impairment of non-current unquoted investments (13.82) (13.03)
- -
OpsDataStore Inc. 13.82 13.03
0.20 million (Previous year : 0.20 million) Preferred stock of $ 0.001 each, fully paid up
Less : Impairment of non-current unquoted investments (13.82) -
- 13.03
Trunomi Inc. 17.28 16.29
0.28 million ( Previous year : 0.28 million) Preferred stock of $ 0.002 each, fully paid up
Jocata Corporation 25.22 16.29
0.006 million ( Previous year : 0.006 million) Preferred stock of $ 0.001 each, fully paid up
Ampool Inc. 17.28 16.29
0.55 million ( Previous year : 0.55 million) Preferred stock of $ 0.4583 each, fully paid up
Cazena Inc.
0.35 million (Previous year : Nil) Preferred stock of $ 0.0001 each, fully paid up 138.22 -
198.00 61.90
- Investments in Convertible Notes
DxNow 8.64 8.15
1 (Previous year : 1) convertible note of USD 125,000 each, fully paid up
Less : Impairment of non-current unquoted investments (8.64) (8.15)
- -
Ustyme 17.28 16.29
1 (Previous year : 1) convertible note of USD 250,000 each, fully paid up
Less : Impairment of non-current unquoted investments (17.28) (16.29)
- -
Akumina Inc. 10.12 9.54
1 (Previous year : 1) convertible note of USD 146,429 each, fully paid up
10.12 9.54
Total Investments carried at Fair Value (C) 2,189.03 1,734.93
Total investments (A) + (B) + (C) 4,345.71 2,881.04
Aggregate amount of impairment in value of investments 67.42 51.01
Aggregate amount of quoted investments 4,131.59 2,803.60
Aggregate amount of unquoted investments 281.54 128.45

* 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 others”

Consolidated Financials • 229

 Shaping the future of software driven business

Notes forming part of consolidated financial statements (Contd.)

7a. Details of fair value of investment in long term Mutual Funds (Quoted)

As at As at
March 31, 2019 March 31, 2018
In ` Million In ` Million
ICICI Prudential Mutual Fund 550.21 664.16
Axis Mutual Fund 304.96 -
Kotak Mutual Fund 294.32 214.02
HDFC Mutual Fund 205.96 191.64
Aditya Birla Sun Life Mutual Fund 191.44 157.98
UTI Mutual Fund 160.32 89.43
SBI Mutual Fund 65.18 177.65
Reliance Mutual Fund 58.05 53.81
IDFC Mutual Fund 50.13 108.80
DHFL Pramerica Mutual Fund 32.10 -
DSP Mutual Fund 32.09 -
Sundaram Mutual Fund 30.15 -
1,974.91 1,657.49

8. Non-current financial assets : Loans (refer note 33)

As at As at
March 31, 2019 March 31, 2018
In ` Million In ` Million
Carried at amortised cost
Security deposits
Unsecured, considered good 142.80 138.49
Unsecured, credit impaired - 2.19
142.80 140.68
Less: Impairment of non-current loans - (2.19)
142.80 138.49

Loan to others (Unsecured, considered good)

Loans 21.20 4.24
21.20 4.24
Other loans and advances
Inter corporate deposits
Unsecured, considered good - -
Unsecured, credit impaired 0.58 0.58
0.58 0.58
Less: Impairment of non-current loans (0.58) (0.58)
- -
164.00 142.73

230 • Annual Report 2018-19

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Notes forming part of consolidated financial statements (Contd.)

9. Other non current financial assets (refer note 33)

As at As at
March 31, 2019 March 31, 2018
In ` Million In ` Million
Non-current bank balances (Refer note 15) 94.39 1.53
Add: Interest accrued but not due on non-current bank deposits 1.46 0.21
Non-current deposits with banks (Carried at amortised cost) 95.85 1.74
Deposits with financial institutions 430.00 35.00
Add: Interest accrued but not due on deposit with financial institutions 5.94 0.69
Less: Credit impaired (182.50) -
253.44 35.69
349.29 37.43

10. Deferred tax asset/ liability (net) *

As at As at
March 31, 2019 March 31, 2018
In ` Million In ` Million
Deferred tax liabilities
Differences in book values and tax base values of block of Property, 226.85 246.10
Plant and Equipment and intangible assets
Capital gains 79.12 108.63
Others 105.04 11.52
411.01 366.25
Deferred tax assets
Provision for leave encashment 141.33 120.38
Provision for long service awards 124.16 96.93
Provision for doubtful debts 39.98 41.81
Provision for gratuity 2.41 -
Differences in book values and tax base values of block of Property, Plant and 83.81 117.12
Equipment and intangible assets (overseas)
Brought forward and current year losses 60.30 41.12
Tax credits 226.35 281.37
Others 137.72 39.12
816.06 737.85
Deferred tax liabilities after set off 411.01 270.41
Deferred tax assets after set off 816.06 642.01
* 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 deferred tax liabilities relate to
income taxes levied by the same taxation authority. In all other cases the same have been separately disclosed.

Consolidated Financials • 231

 Shaping the future of software driven business

Notes forming part of consolidated financial statements (Contd.)

11. Other non-current assets

As at As at
March 31, 2019 March 31, 2018
In ` Million In ` Million
Capital advances (Unsecured, considered good) 2.06 27.00
Advances recoverable in cash or kind or for value to be received 66.25 64.57
68.31 91.57

12. Current financial assets : Investments

As at As at
March 31, 2019 March 31, 2018
In ` Million In ` Million
Designated as fair value through profit and loss
- Quoted investments
Investments in mutual funds
Fair value of current mutual funds (Refer Note 12a) 3,295.53 5,916.31
3,295.53 5,916.31
Total carrying amount of investments 3,295.53 5,916.31
Aggregate amount of quoted investments 3,295.53 5,916.31
Aggregate amount of unquoted investments - -

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

As at As at
March 31, 2019 March 31, 2018
In ` Million In ` Million
UTI Mutual Fund 625.92 823.08
HDFC Mutual Fund 493.59 174.66
Axis Mutual Fund 426.87 743.70
L&T Mutual Fund 407.39 749.22
ICICI Prudential Mutual Fund 399.98 275.33
Aditya Birla Sun Life Mutual Fund 386.73 845.88
SBI Mutual Fund 162.14 50.24
Tata Mutual Fund 115.97 817.81
IDFC Mutual Fund 106.40 349.34
DSP Mutual Fund 103.35 50.39
Sundaram Mutual Fund 67.19 104.15
Reliance Mutual Fund - 190.45
Kotak Mutual Fund - 300.42
DHFL Pramerica Mutual Fund - 441.64
3,295.53 5,916.31

232 • Annual Report 2018-19

 Shaping the future of software driven business

Notes forming part of consolidated financial statements (Contd.)

13. Trade receivables (refer note 33)

As at As at
March 31, 2019 March 31, 2018
In ` Million In ` Million
Outstanding for a period exceeding six months from the date they are due for payment
Unsecured, considered good 4.00 23.12
Unsecured, credit impaired 134.54 146.97
138.54 170.09
Less : Allowance for credit loss (134.54) (146.97)
4.00 23.12
Others
Unsecured, considered good 4,919.01 4,824.28
Unsecured, credit impaired - -
4,919.01 4,824.28
Less : Allowance for credit loss - -
4,919.01 4,824.28
4,923.01 4,847.40

14. Cash and cash equivalents (refer note 33)

As at As at
March 31, 2019 March 31, 2018
In ` Million In ` Million
Cash and cash equivalents as presented in cash flow statement
Cash in hand 0.22 0.23
Balances with banks
On current accounts* 1,300.93 1,196.91
On saving accounts 0.91 0.75
On Exchange Earner's Foreign Currency accounts 114.91 145.83
On deposit accounts with original maturity less than three months 229.54 -
On Escrow account** 92.94 -
1,739.45 1,343.72
* Out of the cash and cash equivalent balance as at March 31, 2019, the Group can utilise ` 2.15 million only towards research
and development activities specified in the agreement. There were no such restrictions for utilisation of the cash and cash
equivalent balance as at March 31, 2018.
** The Group can utilize these balances only towards buy back of equity shares.

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Consolidated Financials • 233

 Shaping the future of software driven business

Notes forming part of consolidated financial statements (Contd.)

15. Other bank balances (refer note 33)

As at As at
March 31, 2019 March 31, 2018
In ` Million In ` Million
Short term bank deposits 4,789.02 -
On deposit account with original maturity more than twelve months * 228.71 940.47
Add: Interest accrued but not due on deposits with banks 60.24 130.11
Deposits with banks (Carried at amortised cost) 5,077.97 1,070.58
Less: Deposits with maturity more than twelve months from the balance sheet date (94.39) (1.53)
disclosed under other non-current financial assets (refer note 9)
Less: Interest accrued but not due on non-current deposits with banks (refer note 9) (1.46) (0.21)
4,982.12 1,068.84
Balances with banks On unpaid dividend accounts** 2.27 1.41
4,984.39 1,070.25
* Out of the balance, fixed deposits of ` 87.99 million (Previous year ` 63.78 million) have been earmarked against bank
guarantees availed by the Group.
** The Group can utilize these balances only towards settlement of the respective unpaid dividend.

16. Current financial assets : Loans (refer note 33)

As at As at
March 31, 2019 March 31, 2018
In ` Million In ` Million
Carried at amortised cost
Loan to related parties (Unsecured, credit impaired)
Klisma e-Services Private Limited 27.43 27.43
27.43 27.43
Less: Impairment of current loans (27.43) (27.43)
- -
Security deposits
Unsecured, considered good 7.87 6.63
7.87 6.63
17. Other current financial assets (refer note 33)

As at As at
March 31, 2019 March 31, 2018
In ` Million In ` Million
Fair value of derivatives designated and effective as hedging instruments
Forward contracts receivable 281.27 42.75
Advances to suppliers
Unsecured, credit impaired 0.81 0.81
Less: Impairment of current financial assets (0.81) (0.81)
- -
Deposit with financial institutions 250.00 995.35
Add: Interest accrued but not due on deposit with financial institutions 10.97 20.65
Deposit with financial institutions (Carried at amortised cost) 260.97 1,016.00
Unbilled revenue 1,834.76 1,699.50
2,377.00 2,758.25

234 • Annual Report 2018-19

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Notes forming part of consolidated financial statements (Contd.)

18. Other current assets

As at As at
March 31, 2019 March 31, 2018
In ` Million In ` Million
Advances to suppliers (Unsecured, considered good)
Advances recoverable in cash or kind or for value to be received 432.25 561.68
Other advances (Unsecured, considered good)
VAT receivable (net) 35.07 74.42
Service tax and GST receivable (net) (refer note 41) 920.47 927.31
955.54 1,001.73
1,387.79 1,563.41

19. Non-current financial liabilities: Borrowings (refer note 33)

As at As at
March 31, 2019 March 31, 2018
In ` Million In ` Million
Unsecured Borrowings carried at amortised cost
Term loans
Indian rupee loan from others 16.55 21.13
Interest accrued but not due on term loans 0.17 0.78
16.72 21.91
Less: Current maturity of long-term borrowings transferred to other current financial (4.58) (4.58)
liabilities (refer note 22)
Less: Current maturity of interest accrued but not due on term loan transferred to other (0.17) (0.78)
current financial liabilities (refer note 22)
(4.75) (5.36)
11.97 16.55
The term loans from Government departments have the following terms and conditions:
Loan I - amounting to ` 5.46 million (Previous year: ` 8.19 million) with interest payable @ 2% per annum guaranteed by a bank
guarantee by the Company and repayable in ten equal semi annual installments over a period of five years commencing from
March 2016.
Loan II - amounting to ` 11.09 million (Previous year: ` 12.94 million) with Interest payable @ 3% per annum repayable in ten
equal annual installments over a period of ten years commencing from September 2015.
20. Non current liabilities : Provisions

As at As at
March 31, 2019 March 31, 2018
In ` Million In ` Million
Provision for employee benefits
- Gratuity (refer note 30) 94.34 16.38
- Long service awards 158.46 143.37
252.80 159.75

Consolidated Financials • 235

 Shaping the future of software driven business

Notes forming part of consolidated financial statements (Contd.)

21. Trade payables (refer note 33)

As at As at
March 31, 2019 March 31, 2018
In ` Million In ` Million
Trade payables for goods and services 1,517.07 1,673.08
1,517.07 1,673.08

22. Other current financial liabilities (refer note 33)

As at As at
March 31, 2019 March 31, 2018
In ` Million In ` Million
Capital creditors 55.16 32.36
Current maturity of long-term borrowings (refer note 19) 4.58 4.58
Current maturity of interest on long-term borrowings (refer note 19) 0.17 0.78
Accrued employee liabilities 377.88 357.02
Unpaid dividend* 2.27 1.41
Other liabilities 1.87 0.18
441.93 396.33
* Unpaid dividend is credited to Investor Education and Protection Fund as and when due.
23. Other current liabilities

As at As at
March 31, 2019 March 31, 2018
In ` Million In ` Million
Unearned revenue 842.08 921.10
Advance from customers 26.34 25.38
Other payables
- Statutory liabilities 247.67 251.49
- Other liabilities 8.18 3.05
1,124.27 1,201.02

24. Current liabilities : Provisions

As at As at
March 31, 2019 March 31, 2018
In ` Million In ` Million
Provision for employee benefits
- Gratuity (refer note 30) 17.20 (44.77)
- Leave encashment 548.87 468.73
- Long service awards 19.02 22.31
- Other employee benefits 1,101.26 1,153.22
1,686.35 1,599.49

236 • Annual Report 2018-19

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Notes forming part of consolidated financial statements (Contd.)

25. Revenue from operations (net)

For the year ended

March 31, 2019 March 31, 2018
In ` Million In ` Million
Software services 32,169.39 29,440.60
Software licenses 1,490.02 896.43
33,659.41 30,337.03

The table below presents disaggregated revenues from contracts with customers by segments, geography and customers’
industry type. The Group 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, 2019 March 31, 2018
In ` Million In ` Million
Segment wise disclosure
Technology Services 22,018.03 19,371.11
Alliance 9,759.92 8,725.06
Accelerite (Products) 1,881.46 2,240.86
Total 33,659.41 30,337.03
Geographical disclosure
India 2,349.29 1,910.67
North America 27,507.46 25,336.90
Rest of the World 3,802.66 3,089.46
Total 33,659.41 30,337.03
Customers' Industry wise disclosure
ISV 13,403.64 12,269.48
Enterprise 11,868.44 10,300.03
IP Led 8,387.33 7,767.52
Total 33,659.41 30,337.03
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 recognize those 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 time and material, outcome based and event
based contracts.
Unsatisfied (or partially satisfied) performance obligations are subject to variability due to several factors such as terminations,
changes in scope of contracts, periodic revalidations of the estimates, economic factors (changes in currency rates, tax laws
etc). The aggregate value of transaction price allocated to unsatisfied (or partially satisfied) performance obligations is
` 3,340.23 million out of which 96.2% is expected to be recognised as revenue in the next year and the balance thereafter. No
consideration from contracts with customers is excluded from the amount mentioned above.
Changes in contract assets (unbilled revenue) are as follows:

Particulars In ` Million
Balance at the beginning of the year 1,699.50
Revenue recognised during the year 14,197.89
Invoices raised during the year (14,135.67)
Exchange difference 73.04
Balance at the end of the year 1,834.76

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Notes forming part of consolidated financial statements (Contd.)

Changes in Unearned revenue are as follows:

Particulars In ` Million
Balance at the beginning of the year 921.10
Revenue recognised during the year (2,454.18)
Increase due to invoicing during the year, not recognised as revenue during the year 2,319.24
Exchange difference 55.92
Balance at the end of the year 842.08
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 judgment with respect to customer business. The amount of this
category of revenue included in the total revenue for the year is ` 1,059.07 million.

26. Other income

For the year ended

March 31, 2019 March 31, 2018
In ` Million In ` Million
Interest income
On financial assets carried at amortised cost 103.10 47.87
On others 184.62 113.67
Foreign exchange gain (net) - 586.31
Profit on sale of fixed assets (net) 4.02 2.40
Dividend income from investments 180.77 171.25
Profit on sale of investments (net) 366.09 186.84
Net gain/(loss) arising on financial assets designated as at FVTPL (68.92) (18.92)
Excess provision in respect of earlier years written back 33.89 18.19
Advances written back - 23.76
Miscellaneous income 72.98 59.64
876.55 1,191.01

27. Personnel expenses

For the year ended

March 31, 2019 March 31, 2018
In ` Million In ` Million
27.1 Employee benefits expense

Salaries, wages and bonus 18,000.86 17,190.37

Contribution to provident fund 384.78 346.56
Gratuity expenses (refer note 30) 155.45 167.78
Defined contribution to other funds 216.89 158.08
Staff welfare and benefits 491.55 449.87
Employee stock compensation expenses (refer note 37d) - 3.80
19,249.53 18,316.46
27.2 Cost of professionals 3,490.45 3,180.63
22,739.98 21,497.09

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28. Other expenses

For the year ended

March 31, 2019 March 31, 2018
In ` Million In ` Million
Travelling and conveyance 933.11 867.92
Electricity expenses (net) 109.45 104.49
Internet link expenses 67.37 66.46
Communication expenses 100.72 119.86
Recruitment expenses 116.63 83.43
Training and seminars 30.22 24.25
Royalty expenses 65.01 60.46
Purchase of software licenses 1,473.20 933.39
Bad debts 71.18 183.97
Provision for doubtful receivables/ (provision for doubtful receivables written back) (4.89) (151.38)
(net)
Rent (refer note 35) 463.72 448.52
Insurance 24.84 24.05
Rates and taxes 79.26 115.42
Legal and professional fees 572.88 500.35
Repairs and maintenance
- Plant and Machinery 114.67 116.18
- Buildings 29.56 27.89
- Others 20.43 20.77
Selling and marketing expenses 4.12 36.09
Advertisement, conference and sponsorship fees 199.06 116.51
Discount allowed 76.92 11.78
Computer consumables 7.95 7.67
Auditors' remuneration (refer note 39) 15.75 14.62
Donations (refer note 36) 80.64 78.10
Books, memberships, subscriptions 77.58 73.27
Foreign exchange loss (net) 243.10 -
Directors' sitting fees 5.32 3.90
Directors' commission 14.21 9.74
Provision for doubtful deposits and advances (refer note 46) 182.50 -
Impairment of non current investments 13.98 26.96
Miscellaneous expenses 168.54 228.01
5,357.03 4,152.68

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Notes forming part of consolidated financial statements (Contd.)

29. Earnings per share

For the year ended

March 31, 2019 March 31, 2018
Numerator for Basic and Diluted EPS
Net Profit after tax (In ` Million) (A) 3,516.79 3,230.88
Denominator for Basic EPS
Weighted average number of equity shares (B) 79,943,943 80,000,000
Denominator for Diluted EPS
Number of equity shares (C) 79,943,943 80,000,000
Basic Earnings per share of face value of ` 10 each (In `) (A/B) 43.99 40.39
Diluted Earnings per share of face value of ` 10 each (In `) (A/C) 43.99 40.39

For the year ended

March 31, 2019 March 31, 2018
Number of shares considered as basic weighted average shares outstanding 79,943,943 80,000,000
Add: Effect of dilutive issues of stock options - -
Number of shares considered as weighted average shares and 79,943,943 80,000,000
potential shares outstanding

30. Gratuity plan

The Group 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. The scheme is funded with an
insurance Company in the 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, 2019 March 31, 2018
Current service cost 156.88 169.93
Interest cost on benefit obligation 55.82 51.79
Expected return on plan assets (60.96) (52.40)
Interest income - (1.54)
Other 3.71 -
Net benefit expense 155.45 167.78
Net actuarial (gain) / loss recognized in the year 70.51 (139.70)
Actual return on net plan assets 60.96

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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, 2019 March 31, 2018
Opening fair value of plan assets 773.89 711.86
Expected return 60.96 52.40
Adjustment to expected return (4.96) 3.60
Contribution by employer 85.95 72.75
Benefits paid (84.52) (66.72)
Closing fair value of plan assets 831.32 773.89
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, 2019 March 31, 2018
Opening defined benefit obligation 745.50 732.41
Interest cost 55.82 51.79
Current service cost 156.88 169.93
Benefits paid (84.52) (68.67)
Actuarial (gains) / losses on obligation 70.51 (139.70)
Exchange difference (1.33) (0.26)
Closing defined benefit obligation 942.86 745.50

Benefit asset/ (liability)

In ` Million
As at
March 31, 2019 March 31, 2018
Fair value of plan assets 831.32 773.89
(Less) : Defined benefit obligations (942.86) (745.50)
Plan asset / (liability) (111.54) 28.39
The Company expects to contribute the entire deficit to gratuity fund in financial year 2019-20.

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

As at
March 31, 2019 March 31, 2018
Investments with insurer including accrued interest 100% 100%

The principal assumptions used in determining gratuity for the Group’s plans are shown below:

As at
March 31, 2019 March 31, 2018
Discount rate 7.60% 7.87%
Increment rate 5.50% 5.00%

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Notes forming part of consolidated financial statements (Contd.)

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.
As at March 31, 2019, every percentage point increase / decrease in discount rate will affect the gratuity benefit obligation by
approximately ` 104.67 million/ ` 124.96 million respectively.
As at March 31, 2019, every percentage point increase / decrease in increment rate will affect the gratuity benefit obligation by
approximately ` 123.51 million / ` 105.04 million respectively.
Amounts for the current and previous year are as follows:
In ` Million
As at
March 31, 2019 March 31, 2018
Plan assets 831.32 773.89
Defined benefit obligation (942.86) (745.50)
Surplus / (Deficit) (111.54) 28.39
Experience adjustments on plan liabilities - Loss/ (gain) 70.51 (139.70)

31. Segment Information

Operating segments are components of an enterprise for which discrete financial information is available that is evaluated
regularly by the chief operating decision maker, in deciding how to allocate resources and assessing performance. The Group’s
chief operating decision maker is the Chairman and Managing Director.
The Group reorganised itself into three business units from April 1, 2018, which form the operating segments for segment
reporting. The operating segments are:
a. Technology Services
b. Alliance
c. Accelerite (Products)
(In ` Million)
Particulars Technology Alliance Accelerite Total
Services (Products)
Year ended Mar-31-2019 22,018.03 9,759.92 1,881.46 33,659.41
Revenue
Year ended Mar-31-2018 19,371.11 8,725.06 2,240.86 30,337.03
Year ended Mar-31-2019 13,510.36 6,461.91 889.32 20,861.59
Identifiable expense
Year ended Mar-31-2018 11,962.93 6,025.17 1,186.57 19,174.67
Year ended Mar-31-2019 8,507.67 3,298.01 992.14 12,797.82
Segmental result
Year ended Mar-31-2018 7,408.18 2,699.89 1,054.29 11,162.36
Year ended Mar-31-2019 8,810.98
Unallocable expenses
Year ended Mar-31-2018 8,060.76
Year ended Mar-31-2019 3,986.84
Operating income
Year ended Mar-31-2018 3,101.60
Year ended Mar-31-2019 876.55
Other income (net of expenses)
Year ended Mar-31-2018 1,191.01
Year ended Mar-31-2019 4,863.39
Profit before taxes
Year ended Mar-31-2018 4,292.61
Year ended Mar-31-2019 1,346.60
Tax expense
Year ended Mar-31-2018 1,061.73
Year ended Mar-31-2019 3,516.79
Profit after tax
Year ended Mar-31-2018 3,230.88
Note: Costs related to research and development are included under identifiable expenses for the purpose of segment reporting.

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Particulars Technology Alliance Accelerite Total

Services (Products)
As at Mar-31-2019 3,547.07 1,021.77 354.17 4,923.01
Segmental trade receivables
As at Mar-31-2018 3,675.96 740.27 431.17 4,847.40
As at Mar-31-2019 - - - 23,632.98
Unallocated assets
As at Mar-31-2018 - - - 21,860.73

Segregation of assets (other than trade receivables), liabilities, depreciation and amortization and other non-cash expenses
into various reportable segments have not been presented as the assets are used interchangeably between segments and the
Group is of the view that it is not practical to reasonably allocate the other assets, liabilities and other non-cash expenses to
individual segments and an ad-hoc allocation will not be meaningful.
Geographical Information
The following table shows the distribution of the Group’s consolidated sales by geographical market regardless of from where
the services were rendered
(In ` Million)
Particulars India North America Rest of the World Total
Year ended Mar-31-2019 2,349.29 27,507.46 3,802.66 33,659.41
Revenue
Year ended Mar-31-2018 1,910.67 25,336.90 3,089.46 30,337.03

The revenue from a single customer in excess of ten percent of total revenue of the Group is ` 8,079.32 million for the year
ended March 31, 2019. (previous year : ` 7,852.92 million).
32. 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, 2019 March 31, 2018
In ` Million In ` Million
Profit before tax 4,863.39 4,292.61
Enacted tax rate in India 34.94% 34.61%
Computed tax expense at enacted tax rate 1,699.46 1,485.59
Effect of exempt income (176.56) (122.20)
Effect of non-deductible expenses 205.58 13.61
Effect of concessions (R&D allowance) (56.00) (173.87)
Effect of concessions (Tax holidays) (233.82) (259.13)
Effect of unused tax losses not recognised as deferred tax assets 26.64 78.46
Effect of previously unrecognised deferred tax assets now recognised (18.44) (2.51)
Effect of different tax rates of subsidiaries operating in other jurisdictions (13.78) (16.13)
Effect of different tax rates for different heads of income (30.69) (6.86)
Effect of change in tax rates in US geography - 22.14
Excess Tax Provision reversal (net) 88.81 (71.19)
Others (144.60) 113.82
Income tax expense 1,346.60 1,061.73

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Notes forming part of consolidated financial statements (Contd.)

Note:
The Parent Company benefits from the tax holidays available for units set up under the Special Economic Zone Act, 2005.
These tax holidays are available for a period of fifteen years from the date of commencement of operation. Under the SEZ
Scheme, the Unit which begins providing services on or after April 1, 2005 will be eligible for deduction of 100% of profits or
gains derived from export of services for the first five years from the financial year in which the unit commenced the provision
of services, 50% of such profits or gains for a further period of five years. Upto 50% of such profits and gains is also available
for the further period of five years subject to creation of a Special Economic Zone re-investment Reserve out of the profit for
the eligible SEZ units and utilization of such reserve by the Company for acquiring new plant and machinery for the purpose of
its business as per the provisions of the Income Tax Act, 1961.
33. Financial assets and liabilities
The carrying values and fair values of financial instruments by categories are as follows:
In ` Million
As at March 31, 2019 As at March 31, 2018 Fair value
Financial assets / Basis of hierarchy
Carrying Fair value Carrying Fair value
financial liabilities measurement
value value
Assets:
Investments in associates (net) Equity accounting - - - -
Investments in equity Fair value 214.12 214.12 77.44 77.44 Level 3
instruments, preferred stock and
convertible notes
Investments in bonds* Amortised cost 2,156.68 2,120.86 1,146.11 1,139.71
Investments in mutual funds Fair value 5,270.44 5,270.44 7,573.80 7,573.80 Level 1
Loans Amortised cost 171.87 171.87 149.36 149.36
Deposit with banks and Amortised cost 5,592.38 5,592.38 2,122.27 2,122.27
financial institutions
Cash and cash equivalents Amortised cost 1,741.72 1,741.72 1,345.13 1,345.13
(including unpaid dividend)
Trade receivables (net) Amortised cost 4,923.01 4,923.01 4,847.40 4,847.40
Forward contracts receivables Fair value 281.27 281.27 42.75 42.75 Level 2
Unbilled revenue Amortised cost 1,834.76 1,834.76 1,699.50 1,699.50
Total 22,186.25 22,150.43 19,003.76 18,997.36
Liabilities:
Borrowings Amortised cost 16.72 16.72 21.91 21.91
(including accrued interest)
Trade payables and Amortised cost 1,517.07 1,517.07 1,673.08 1,673.08
deferred payment liabilities
Other financial liabilities Amortised cost 437.18 437.18 390.97 390.97
(excluding borrowings)
Total 1,970.97 1,970.97 2,085.96 2,085.96
* Includes interest accrued
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 liability, either directly
(i.e. as prices) or indirectly (i.e. derived from prices).

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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.
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 liquidity risk. The Group’s focus is to
foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance.
The primary market risk to the Group is foreign exchange risk. The Group uses derivative financial instruments to mitigate
foreign exchange related risk exposures. The use of financial derivatives is governed by the Group’s policies approved by the
Board of Directors which provide written principles on foreign exchange hedging. The Group’s exposure to credit risk is mainly
for receivables that are overdue for more than 90 days. The Credit Task Force is responsible for credit risk management.
Investment of excess liquidity is governed by the Investment policy of the Group. The Group’s Risk Management Committee
monitors risks and policies implemented to mitigate risk 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 Group holds plain vanilla
forward contracts against expected future sales in USD to mitigate the risk of changes in exchange rates.
The following table analyses unhedged foreign currency risk from financial instruments as of March 31, 2019:
(In ` Million)
USD EUR GBP Other Total
currencies
Trade receivables 126.29 101.62 41.84 47.58 317.33
Cash and cash equivalents and bank balances 226.68 5.43 13.72 30.07 275.90
Other financial assets - 0.14 3.33 1.82 5.29
Trade and other payables 40.28 0.34 11.74 - 52.36
The following table analyses unhedged foreign currency risk from financial instruments as of March 31, 2018:
(In ` Million)
USD EUR GBP Other Total
currencies
Trade receivables 936.55 116.79 0.20 97.89 1,151.43
Cash and cash equivalents and bank balances 288.75 5.30 8.35 27.79 330.19
Trade and other payables 16.66 - 1.73 - 18.39

Foreign currency sensitivity analysis

For the year ended March 31, 2019 and March 31, 2018, every percentage point depreciation / appreciation in the exchange rate
between the Indian rupee and foreign currencies, would affect the Group’s profit before tax margin (PBT) by approximately
0.26% and 0.25% respectively.
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 similar assets in active
markets or inputs that are directly or indirectly observable in the marketplace. The Group has designated foreign exchange
forward contracts as cash flow hedges to mitigate the risk of foreign exchange exposure on highly probable forecast sales
transactions.

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

As at March 31, 2019 As at March 31, 2018

Foreign Average ` (million) Foreign Average ` (million)
currency rate currency rate
(million) (million)
Derivatives designated as cash
flow hedges
Forward contracts
USD 112.00 73.00 8,175.45 103.00 66.95 6,895.53
The foreign exchange forward contracts mature within twelve months. The table below analyses the derivative financial
instruments into relevant maturity groupings based on the remaining period as of the balance sheet date:

As at March 31, 2019 As at March 31, 2018

Foreign Average ` (million) Foreign Average ` (million)
currency rate currency rate
(million) (million)
Not later than 3 months 30.00 69.95 2,098.38 25.00 66.79 1,669.69
Later than 3 months and not later 30.00 74.00 2,220.06 24.00 66.72 1,601.25
than 6 months
Later than 6 months and not later 30.00 74.84 2,245.19 25.00 66.93 1,673.26
than 9 months
Later than 9 months and not later 22.00 73.26 1,611.82 29.00 67.29 1,951.33
than 12 months
Total 112.00 8,175.45 103.00 6,895.53

Credit risk
Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The maximum exposure
to the credit risk at the reporting date is primarily from trade receivables. As at March 31, 2019, trade receivables amounted to
` 4,923.01 million (March 31, 2018: ` 4,847.40 million).
Trade receivables are typically unsecured and are derived from revenue earned from customers primarily located in the
United States. Credit risk is managed by the Group by Credit Task Force through credit approvals, establishing credit limits
and continuously monitoring the recovery status of customers to which the Group grants credit terms in the normal course of
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 allowance for trade receivables. The
policy takes into account available external and internal credit risk factors and the Group’s historical experience for 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:

As at
March 31, 2019 March 31, 2018
Receivables overdue for more than 90 days (` million)* 284.19 271.99
Total receivables (gross) (` million) 5,057.55 4,994.37
Overdue for more than 90 days as a % of total receivables 5.6% 5.4%
* Out of this amount, ` 134.54 million (March 31, 2018: ` 146.97 million) have been provided for.

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Ageing of trade receivables
In ` Million
As at
March 31, 2019 March 31, 2018
Within the credit period 4,180.82 3,350.59
1 to 30 days past due 320.33 774.61
31 to 60 days past due 153.87 347.81
61 to 90 days past due 118.34 249.37
91 to 120 days past due 70.02 50.33
121 and above past due 214.17 221.66
Less: Expected credit loss (134.54) (146.97)
Net trade receivables 4,923.01 4,847.40

Movement in expected credit loss allowance

In ` Million
As at
March 31, 2019 March 31, 2018

Opening balance 146.97 283.62

Movement in expected credit loss allowance (4.89) (151.38)
Translation differences (7.54) 14.73
Closing balance 134.54 146.97
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 debt mutual funds, quoted bonds.
Liquidity risk
The Group’s principal sources of liquidity are cash and cash equivalents and the cash flow that is generated from operations.
The Group has no outstanding bank borrowings. The investment of surplus cash is governed by the Group’s investment policy
approved by the Board of Directors. The Group believes that the working capital is sufficient to meet its current requirements.
Accordingly, no liquidity risk is perceived.
As at March 31, 2019, the Group had a working capital of ` 14,055.68 million including cash and cash equivalents and current
fixed deposits of ` 2,123.77 million and current investments of ` 3,295.53 million. As at March 31, 2018, the Group had a working
capital of ` 12,750.04 million including cash and cash equivalents and current fixed deposits of ` 3,278.01 million and current
investments of ` 5,916.31 million.
The table below provides details regarding the contractual maturities of significant financial liabilities:
In ` Million
As at March 31, 2019 As at March 31, 2018
Less than More than Less than More than
1 year 1 year 1 year 1 year
Borrowings (including accrued interest) 4.75 11.97 5.36 16.55
Trade payables and deferred payment liabilities 1,517.07 - 1,673.08 -
Other financial liabilities (excluding borrowings) 437.18 - 390.97 -

34. Derivative instruments and un-hedged foreign currency exposures

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

(In ` Million)
As at March 31, 2019 As at March 31, 2018
Forward contracts to sell USD: Hedging of expected future 8,175.45 6,895.53
receivables of USD 112 Million (Previous year USD 103 Million)

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

As at March 31, 2019 As at March 31, 2018

In ` million Foreign Conversion In ` million Foreign Conversion
currency rate (`) currency rate (`)
(In million) (In million)
Bank balances 0.91 JPY 1.47 0.62 0.75 JPY 1.23 0.62
226.68 USD 3.28 69.11 288.75 USD 4.43 65.17
13.72 GBP 0.15 90.50 8.35 GBP 0.09 92.28
15.71 CAD 0.31 51.51 8.61 CAD 0.17 50.65
5.43 EUR 0.07 77.62 5.30 EUR 0.07 80.80
2.56 AUD 0.05 48.99 7.30 AUD 0.15 50.04
10.89 ZAR 2.28 4.77 11.13 ZAR 2.00 5.57

Trade and other payables 40.28 USD 0.58 69.11 16.66 USD 0.26 65.17
11.74 GBP 0.13 90.50 1.73 GBP 0.02 92.28
0.34 EUR 0.004 77.62 - - -
Advances given and deposits 0.36 AUD 0.007 48.99 - - -
placed 3.33 GBP 0.04 90.50 - - -
0.14 EUR 0.002 77.62 - - -
0.01 ZAR 0.002 4.77 - - -
0.01 MYR 0.001 16.94 - - -
1.40 CAD 0.03 51.51 - - -
0.04 JPY 0.064 0.62 - - -
Trade receivables 126.29 USD 1.83 69.11 936.55 USD 14.37 65.17
101.62 EUR 1.31 77.62 116.79 EUR 1.45 80.80
41.84 GBP 0.46 90.50 0.20 GBP 0.01 80.90
0.84 CAD 0.02 51.51 39.43 CAD 0.78 50.65
26.30 AUD 0.54 48.99 28.41 AUD 0.57 50.04
20.44 ZAR 4.29 4.77 28.75 ZAR 5.17 5.57
- - - 0.16 NOK 0.02 8.39
- - - 0.94 SEK 0.12 7.86
- - - 0.20 MYR 0.01 16.90

35. Operating leases

The Group has taken equipment and office premises on lease under cancellable operating lease arrangements. Further,
the Group has also taken certain land and office premises under non-cancellable operating lease agreement for a period of
3 – 15 years. There are no restrictions imposed by the lease agreements. There are no subleases. The Group has an option
to renew the lease agreements at the end of the lease period.
Maximum obligation on long–term non-cancellable operating lease payable as per the rentals stated in respective
agreement and the lease rentals recognized on cancellable and non-cancellable leases is as follows:

(In ` Million)
For the year ended
March 31, 2019 March 31, 2018
Lease rentals during the year
- On cancellable leases 407.66 133.40
- On non-cancellable leases 56.06 315.12
Total 463.72 448.52

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(In ` Million)
As at
March 31, 2019 March 31, 2018
Obligation on non- cancellable operating leases
- Not later than one year 108.22 290.97
- Later than one year and not later than five years 140.11 349.74
- Later than five years - 202.04

36. Related Party Disclosures

(i) Names of related parties and related party relationship

Related parties with whom transactions have taken place

Associate i. Klisma e-Services Private Limited
Key management personnel i. Dr. Anand Deshpande, Chairman and Managing Director
ii. Mr. Christopher O'Connor, Chief Executive Officer*
iii. Mr. Mritunjay Singh, Executive Director**
iv. Mr. Sunil Sapre, Executive Director and Chief Financial Officer
v. Mr. Amit Atre, Company Secretary
vi. Mr. Sudhir Kulkarni, Director, Persistent Systems, Inc., USA
vii. Mr. Narayanan Rajagopalan, President and Director,
Persistent Telecom Solutions Inc., USA
viii. Mr. Azlin Ghazali, Director, Persistent Systems Malaysia Sdn. Bhd.
ix. Ms. Audrey Reutens, Director, Persistent Systems Malaysia Sdn. Bhd.
x. Mr. Arnaud Pierrel, Director General, Persistent Systems France SAS
xi. Mr. Sebastien Rattier, Director, Persistent Systems France SAS***
xii. Mr. Bruno Orsier, Director, Persistent Systems France SAS****
xiii. Mr. Thomas Klein, Director, Persistent Systems, Inc., USA
xiv. Ms. Roshini Bakshi, Independent Director
xv. Mr. Pradeep Bhargava, Independent Director
xvi. Mr. Sanjay Bhattacharya, Independent Director
xvii. Dr. Anant Jhingran, Independent Director@@
xviii. Mr. Thomas Kendra, Independent Director
xix. Mr. Prakash Telang, Independent Director
xx. Mr. Kiran Umrootkar, Independent Director
xxi. Mr. Deepak Phatak, Independent Director@
xxii. Mr. Guy Eiferman, Independent Director@
Relatives of i. Mr. Suresh Deshpande
Key management personnel (Father of the Chairman and Managing Director)
ii. Mrs. Sulabha Suresh 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. Dr. Asha Sapre (Wife of Executive Director and Chief Financial Officer)
Entities over which a key i. Deazzle Services Private Limited
management personnel have ii. Azure Associates, LLC
significant influence
iii. Persistent Foundation

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(ii) Related party transactions
(In ` Million)
For the year ended
Name of the related party and nature of relationship
March 31, 2019 March 31, 2018
Sale of Entity over which a key management personnel
software services has significant influence
Deazzle Services Private Limited 18.46 34.48
Total 18.46 34.48
Legal and Entity over which a key management personnel
professional fees has significant influence
Azure Associates, LLC 23.07 10.68
Total 23.07 10.68
Remuneration # Key management personnel
(Salaries, bonus and Dr. Anand Deshpande 21.79 19.54
contribution to PF)
Mr. Christopher O' Connor* 6.62 -
Mr. Mritunjay Singh (including value of perquisites for stock - 13.95
options exercised ` 6.22 million during the year 2017-18)**
Mr. Sunil Sapre (including value of perquisites for stock options 12.47 11.71
exercised ` 0.88 million during the year 2018-19, ` 1.02 million
during the year 2017-18)
Mr. Amit Atre 2.92 2.59
Mr. Narayanan Rajagopalan 43.02 42.55
Mr. Sudhir Kulkarni 42.31 37.50
Mr. Azlin Ghazali (including value of perquisites for stock 23.27 8.79
options exercised ` 13.61 million during the year 2018-19)
Ms. Audrey Reutens 5.05 4.45
Mr. Arnaud Pierrel 13.16 11.39
Mr. Sebastien Rattier*** - 2.51
Mr. Bruno Orsier**** 10.36 8.99
Mr. Thomas Klein 32.21 33.70
Other directors:
Ms. Roshini Bakshi 2.20 2.00
Mr. Pradeep Bhargava 2.78 2.68
Mr. Sanjay Bhattacharyya 2.30 2.20
Dr. Anant Jhingran@@ 1.98 0.65
Mr. Thomas Kendra 2.03 2.10
Mr. Prakash Telang 2.48 2.20
Mr. Kiran Umrootkar 2.80 2.25
Mr. Guy Eiferman@ 1.99 -
Dr. Deepak Phatak@ 1.95 -
Relatives of key management personnel
Mrs. Chitra Buzruk 4.71 3.46
Dr. Mukund Deshpande (including value of perquisites for stock 8.05 4.84
options exercised ` 3.43 million during the year 2018-19)
Total 246.45 220.05

250 • Annual Report 2018-19

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Notes forming part of consolidated financial statements (Contd.)

For the year ended
Name of the related party and nature of relationship
March 31, 2019 March 31, 2018
Dividend paid Relatives of key management personnel
Dr. Anand Deshpande 251.25 228.15
Mr. Mritunjay Singh 0.63
Mr. Sunil Sapre 0.05 0.01
Relatives of key management personnel
Mr. Suresh Deshpande 0.06 0.63
Mrs. Chitra Buzruk 5.25 4.70
Dr. Mukund Deshpande 4.12 4.00
Mrs. Sonali Anand Deshpande 1.23 1.12
Mrs. Sulabha Suresh Deshpande 6.23 5.66
Independent directors:
Mr. Pradeep Bhargava 0.15 0.14
Mr. Sanjay Bhattacharyya 0.15 0.15
Mr. Prakash Telang 0.20 0.18
Mr. Kiran Umrootkar 0.07 0.06
Total 268.76 245.43
Donation given Entity over which a key management personnel has
significant influence
Persistent Foundation 70.51 66.61
Total 70.51 66.61
Rent paid Key management personnel
Mr. Sunil Sapre 0.16 0.03
Relatives of Key Management Personnel
Dr. Asha Sapre 0.16 0.03
Total 0.32 0.06
Deposit given Key management personnel
Mr. Sunil Sapre - 0.16
Total - 0.16

(iii) Outstanding balances

(In ` Million)
As at
Name of the related party and nature of relationship
March 31, 2019 March 31, 2018
Advances given Associate
Klisma e-Services Private Limited ## 0.81 0.81
Total 0.81 0.81
Trade receivables Entity over which a key management personnel have
significant influence
Deazzle Services Private Limited 2.14 3.45
Total 2.14 3.45
Loan given Associate
Klisma e-Services Private Limited ## 27.43 27.43
Total 27.43 27.43
Investments Associates
Klisma e-Services Private Limited ## 0.05 0.05
Total 0.05 0.05

Consolidated Financials • 251

 Shaping the future of software driven business

Notes forming part of consolidated financial statements (Contd.)

* Mr. Christopher O’Connor has been appointed as Chief executive officer Designate w.e.f. February 25, 2019 via Persistent
Systems Inc.
** Mr. Mritunjay Singh resigned as executive director w.e.f. November 24, 2017.
***Mr. Sebastien Rattier has resigned w.e.f July 31, 2017, hence his remuneration for the year ended March 31, 2018 has been
disclosed till July 31, 2017.
****Mr. Bruno Orsier is appointed as director with effect from September 25, 2017, however his remuneration for the financials
year ended March 31, 2018 has been disclosed from April 01, 2017 to March 31, 2018.
@ Dr. Deepak Phatak and Mr. Guy Eiferman have been appointed as additional directors (independent member) on the board of
Persistent Systems Limited w.e.f. April 24, 2018.
@@ Dr. Anant Jhingran appointed as Independent Director w.e.f. November 21, 2017
# The remuneration to the key managerial personnel does not include 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.
## These balances are fully provided for.

37. 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 Date of adoption by Initial Grant date Exercise period
granted # the Board / Members
Scheme I 4,560,500 Dec 11, 1999 Dec 11, 1999 *
Scheme II 753,200 Apr 23, 2004 Apr 23, 2004 10 Years
Scheme III 2,533,300 Apr 23, 2004 Apr 23, 2004 *
Scheme IV 6,958,250 Apr 23, 2006 Apr 23, 2006 10 Years
Scheme V 1,890,525 Apr 23, 2006 Apr 23, 2006 *
Scheme VI 1,216,250 Oct 31, 2006 Oct 31, 2006 10 Years
Scheme VII 1,784,975 Apr 30, 2007 Apr 30, 2007 10 Years
Scheme VIII 42,000 Jul 24, 2007 Jul 24, 2007 3 Years
Scheme IX 1,374,462 Jun 29, 2009 Jun 29, 2009 10 Years
Scheme X 3,062,272 Jun 10, 2010 Oct 29, 2010 3 Years
Scheme XI ** 492,000 Jul 26, 2014 Nov 03, 2014 1 Year
Scheme XII *** 67,300 Feb 04, 2016 Apr 08, 2016 2.5 Months

# 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 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 will vest after 1 year. The maximum options which granted under this
scheme are 50.

252 • Annual Report 2018-19

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Notes forming part of consolidated financial statements (Contd.)

The vesting period and conditions of the above ESOP schemes is as follows:
All the above ESOP schemes have service condition, 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:

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

% of Options vesting
Service period from the date of grant
Scheme I to V & X Scheme VII Scheme VIII
12 Months 10% 20% 25%
24 Months 30% 40% 50%
36 Months 60% 60% 75%
48 Months 100% 80% 100%
60 Months NA 100% 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 date of grant % of Options vesting

3 years Based on credit points earned

(v) Scheme XII:

Service period from the date of grant % of Options vesting

1 year 100%

b) Details of activity of the ESOP schemes

Movement for the year ended March 31, 2019 and March 31, 2018:

ESOP Particulars Year Ended Outstanding at Granted Forfeited Exercised Outstanding Exercisable
Scheme the beginning during during the during at the end at the end
of the Year the Year Year the Year of the Year of the Year
Scheme I Number of Options March 31, 2019 20 - - 2 18 18
Weighted Average March 31, 2019 4.19 - 4.19 4.22 4.42 4.42
Price
Number of Options March 31, 2018 6,583 - 6,559 4 20 20
Weighted Average March 31, 2018 5.51 - 5.51 5.56 4.19 4.19
Price
Scheme II Number of Options March 31, 2019 103 - - 100 3 3
Weighted Average March 31, 2019 47.51 - - 48.21 24.18 24.18
Price
Number of Options March 31, 2018 4,603 - - 4,500 103 103
Weighted Average March 31, 2018 48.20 - - 48.21 47.51 47.51
Price

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Notes forming part of consolidated financial statements (Contd.)

ESOP Particulars Year Ended Outstanding at Granted Forfeited Exercised Outstanding Exercisable
Scheme the beginning during during during at the end at the end
of the Year the Year the Year the Year of the Year of the Year
Scheme III Number of Options March 31, 2019 203,392 - 11,288 33,479 158,625 158,625
Weighted Average March 31, 2019 31.36 - 25.75 30.74 31.89 31.89
Price
Number of Options March 31, 2018 238,827 - 6,382 29,053 203,392 203,392
Weighted Average March 31, 2018 31.02 - 14.82 32.20 31.36 31.36
Price
Scheme IV Number of Options March 31, 2019 708,946 - 17,542 191,631 499,773 499,773
Weighted Average March 31, 2019 52.34 - 24.79 54.78 52.37 52.37
Price
Number of Options March 31, 2018 827,944 - 4,023 114,975 708,946 708,946
Weighted Average March 31, 2018 51.48 - 24.65 47.12 52.34 52.34
Price
Scheme V Number of Options March 31, 2019 96,856 - 10,952 23,111 62,793 62,793
Weighted Average March 31, 2019 26.33 - 24.13 24.55 27.37 27.37
Price
Number of Options March 31, 2018 116,446 - 9,225 10,365 96,856 96,856
Weighted Average March 31, 2018 26.29 - 23.47 28.43 26.33 26.33
Price
Scheme VI Number of Options March 31, 2019 - - - - - -
Weighted Average March 31, 2019 - - - - - -
Price
Number of Options March 31, 2018 - - - - - -
Weighted Average March 31, 2018 - - - - - -
Price
Scheme VII Number of Options March 31, 2019 37,996 - - 3,000 34,996 34,996
Weighted Average March 31, 2019 35.73 - - 61.12 33.55 33.55
Price
Number of Options March 31, 2018 55,887 - 4,000 13,891 37,996 37,996
Weighted Average March 31, 2018 36.26 - 30.55 30.55 35.73 35.73
Price
Scheme VIII Number of Options March 31, 2019 - - - - - -
Weighted Average March 31, 2019 - - - - - -
Price
Number of Options March 31, 2018 - - - - - -
Weighted Average March 31, 2018 - - - - - -
Price
Scheme IX Number of Options March 31, 2019 150,552 - - 8,432 142,120 142,120
Weighted Average March 31, 2019 54.74 - - 54.74 54.74 54.74
Price
Number of Options March 31, 2018 163,777 - 3,000 10,225 150,552 150,552
Weighted Average March 31, 2018 54.74 - 54.74 54.74 54.74 54.74
Price
Scheme X Number of Options March 31, 2019 461,351 - 31,124 274,577 155,650 155,650
Weighted Average March 31, 2019 201.74 - 204.64 204.64 206.73 206.73
Price
Number of Options March 31, 2018 988,647 - 258,392 268,904 461,351 461,351
Weighted Average March 31, 2018 204.22 - 209.07 209.07 201.74 201.74
Price

254 • Annual Report 2018-19

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Notes forming part of consolidated financial statements (Contd.)

Scheme XI Number of Options March 31, 2019 36,000 - 9,600 26,400 - -

Weighted Average March 31, 2019 5.00 - 5.00 5.00 - -
Price
Number of Options March 31, 2018 402,600 - 323,400 43,200 36,000 36,000
Weighted Average March 31, 2018 10.00 - 10.00 10.00 10.00 10.00
Price
Scheme XII Number of Options March 31, 2019 - - - - - -
Weighted Average March 31, 2019 - - - - - -
Price
Number of Options March 31, 2018 67,300 - 14,850 52,450 - -
Weighted Average March 31, 2018 10.00 - 10.00 10.00 - -
Price
Number of Options March 31, 2019 1,695,216 - 80,506 560,732 1,053,978 1,053,978
Total
Number of Options March 31, 2018 2,872,614 - 629,831 547,567 1,695,216 1,695,216
The weighted average share price for the period over which stock options were exercised was ` 697.09
(previous year ` 690.36).
c) Details of exercise price for stock options outstanding at the end of the year

Scheme Range of exercise price As at March 31, 2019 As at March 31, 2018
No. of Options Weighted No. of Options Weighted average
outstanding average outstanding remaining
remaining contractual life
contractual life (in years)
(in years)
Scheme I 2.04 – 9.57 18 Note (i) 20 Note (i)
Scheme II 12.96 – 48.21 3 2.40 103 3.40
Scheme III 12.96 – 48.21 158,625 Note (i) 203,392 Note (i)
Scheme IV 22.23 – 61.12 499,773 3.93 708,946 4.92
Scheme V 22.23 – 44.14 62,793 Note (i) 96,856 Note (i)
Scheme VI 22.23 – 30.67 - - - -
Scheme VII 24.17 – 61.12 34,996 3.37 37,996 4.56
Scheme VIII 48.21 – 48.21 - - - -
Scheme IX 54.74 – 54.74 142,120 4.03 150,552 5.03
Scheme X 157.58 – 279.70 155,650 1.85 461,351 0.67
Scheme XI 10.00 - - 36,000 0.25
Scheme XII 10.00 - - - -
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, 2019 amounted to Nil (Previous year ` 3.80 million). The liability for employee stock options outstanding as at
March 31, 2019 is ` 76.29 million (Previous year ` 90.52 million).
38. Capital and other commitments
(In ` Million)
As at
March 31, 2019 March 31, 2018
Capital commitments
Estimated amount of contracts remaining to be executed on capital account and 342.67 236.89
not provided for
Other commitments
Forward contracts 8,175.45 6,895.53
For commitments relating to lease agreements, please refer note 35.

Consolidated Financials • 255

 Shaping the future of software driven business

Notes forming part of consolidated financial statements (Contd.)

39. Auditors’ remuneration
(In ` Million)
For the year ended
March 31, 2019 March 31, 2018
As auditor*:
- Audit fee* 9.20 8.00
- Tax audit fee - -
In other capacity:
- Other services* 12.51 1.07
Reimbursement of expenses - -
21.71 9.07
* Does not include payment to local auditors of subsidiaries.
40. Research and development expenditure
The particulars of expenditure incurred on in-house research and development are as follows:
(In ` Million)
For the year ended
March 31, 2019 March 31, 2018
Capital 0.46 -
Revenue 865.21 882.97
865.67 882.97
41. Contingent liabilities
The contingent liabilities as on March 31, 2019 were ` 299.14 million (previous year ` 51.91 million).
Persistent Systems Limited (“the Holding Company”) had received a show cause notice from Commissioner of Service
Tax on December 19, 2016 for non-payment of service tax of ` 452.15 million under import of services on reverse charge
basis, excluding interest and penalty if applicable. The issue relates to the professional and technical services rendered by
overseas subsidiaries on behalf of the Holding Company to its overseas customers for the period 2011-12 to 2014-15.
Post representations made by the Holding Company, the Learned Principal Commissioner of Service Tax, Pune, adjudicated
the aforesaid show-cause notice and issued an order on May 29, 2017, reducing the demand to ` 165.51 million based on the
period of limitation and as a result of that, the said demand now covers financial year 2014-15.
The Holding Company has filed an appeal against the order passed by Learned Principal Commissioner of Service Tax,
Pune with the Hon’ble Central Excise and Service Tax Appellate Tribunal (CESTAT) on September 23, 2017.
The Holding Company, based on independent legal opinion obtained in respect of issues related to this matter, believes
that the liability is not likely to arise and therefore, no provision is considered necessary in the financial statements. If the
appeal filed as mentioned above results in a demand, there will be no impact on the profitability as the Holding Company
will be eligible to claim credit/refund for the amount paid.
The GST department has filed an appeal on October 11, 2017 with appellate authorities against the Order passed by Learned
Principal Commissioner of Service Tax, Pune. Though the GST department has acknowledged the ground of revenue
neutrality, the said appeal mainly questions non-application of extended period of limitation. The Holding Company has
filed reply to this appeal on December 18, 2017.
Considering the view of the Service Tax Authorities, based on legal advice, and due prudence, the Holding Company has
deposited, an amount of ` 647.36 million towards service tax in respect of the above matter, for the period from April 01,
2014 to June 30, 2017, under protest.
As on March 31, 2019, the pending litigations in respect of direct taxes amount to ` 268.74 million and in respect of indirect
taxes amount to ` 30.40 million (excluding the show cause received from Commissioner of Service Tax on May 29, 2017 of
` 173.78 million under import of services on reverse charge basis as mentioned above). Based on the advice obtained and
judgments in favour of the Company at the first appellate authority in the earlier years, management does not expect any
outflow in respect of these litigations.

256 • Annual Report 2018-19

 Shaping the future of software driven business

Notes forming part of consolidated financial statements (Contd.)

Persistent Systems Inc., subsidiary of Persistent Systems Limited, has given a guarantee of ` 10.00 million (Previous year:
` 10.00 million to Tech Data Europe GmbH & its Affiliates towards trade payable of Persistent Systems Inc & its Affiliates.
Persistent Systems Ltd has given a guarantee of $ 15.17 million on behalf of Persistent Systems Inc. (Previous year: $ 15.17
million).
42. On July 02, 2015, the Company, through its wholly owned subsidiary Persistent Systems Inc., acquired the entire equity
capital of US based Akshat Corporation (d.b.a. RGen Solutions in USA). In addition to the upfront purchase consideration,
the stock purchase agreement for additional consideration, contingent upon certain conditions being met in future years.
The additional contingent consideration payable to the selling shareholders is subject to a maximum amount of USD 3.75
million. The fair value of the contingent consideration is estimated to be Nil as on the date of acquisition. The contingent
consideration would be recorded, as and when the contingency is resolved and the consideration is payable.
43. Persistent Systems Inc. (a wholly owned subsidiary of Persistent Systems Limited) acquired Digital Content Management
Solution product from the US based Akumina Inc. on November 9, 2015. In addition to the upfront purchase consideration,
the asset purchase agreement provides for additional consideration, contingent upon certain conditions being met in
future years. The additional contingent consideration payable to Akumina Inc., is subject to maximum amount of USD 5.00
million. The fair value of the contingent consideration is estimated to be Nil as on the date of acquisition. The contingent
consideration would be recorded, as and when the contingency is resolved and the consideration is payable.
44. Persistent Telecom Solutions Inc. (a wholly owned subsidiary of Persistent Systems Inc.) acquired a cloud platform open
source software from Citrix on February 28, 2016. In addition to the upfront purchase consideration, the asset purchase
agreement provides for additional consideration, contingent upon certain conditions being met in future years. The fair
value of the contingent consideration is estimated to be Nil as on the date of acquisition. The contingent consideration
would be recorded, as and when the contingency is resolved and the consideration is payable.
45. a) On August 24, 2018, Persistent Systems Inc. (a wholly owned subsidiary of Persistent Systems Limited) acquired the
entire equity capital of a USA based Company Herald technologies Inc. (referred to as ‘Herald’). The Company acquired
100% voting equity interest in Herald through share purchase agreement.
The acquisition would strengthen Persistent’s IP led offerings in the healthcare domain and create a number of cross-sell
opportunities
b) The amount of consideration is ` 148.50 million which is paid / payable in cash.
The fair value of assets acquired and liabilities assumed as on the date of acquisition are as follows:
(In ` Million)
Particulars Total
Current Assets
Cash and & cash equivalents 0.35
Non-current assets
Property, Plant and Equipment 0.08
Intangible assets under development 148.67
Current liabilities
Trade and other payables 0.35
Net assets 148.75
The gain on bargain purchase arising on acquisition is ` 0.25 million
c) Net cash outflow on acquisition of subsidiaries

Particulars Amount in ` million

Consideration paid/ payable in cash 148.50
Less: cash and cash equivalent balances acquired (0.35)
148.15
d) Revenue of Herald is Nil. The loss included is ` 10.29 million. Had the business combination been effected on April 1,
2018, there would have been no change in the revenue and the profit after tax for the year ended March 31, 2019 for
the Group.

Consolidated Financials • 257

 Shaping the future of software driven business

46. As reported in the previous quarters, Persistent Systems Limited (“the Parent Company”) has deposits of ` 430 million
with the financial institutions viz. Infrastructure Leasing & Financial Services Ltd. (IL&FS) and IL&FS Financial Services Ltd.
(referred to as “IL&FS Group”) as on the balance sheet date. These are due for maturity from January 2019 to June 2019,
of which ` 345 million are overdue as on March 31, 2019. The Group has not accrued any interest on these deposits since
April 1, 2018. The amount due till March 31, 2019 and interest due have not been received as on date. In view of the uncer-
tainty prevailing with respect to recovery of outstanding balances from IL&FS Group, Management of the Parent Company
has provided an amount of ` 182.50 million for impairment in value of deposits as of March 31, 2019. The provision current-
ly reflects the exposure that may arise given the uncertainty. With the resolution plan in progress, the Management of the
Parent Company is hopeful of recovery though with a time lag. The Parent Company continues to monitor developments
in the matter and is committed to take steps including legal action that may be necessary to ensure full recovery of the
said deposits.
47. The financial statements are presented in ` million and decimal thereof except for per share information or as otherwise
stated.
48. Previous year’s figures have been regrouped where necessary to conform to current year’s classification.

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258 • Annual Report 2018-19

 Form AOC-1 Part A
Statement pursuant to Section 129 (3) of the Companies Act, 2013 relating to subsidiaries
(In ` Million unless stated otherwise)
Sr. Name of the Persistent Persistent Persistent Persistent Persistent Persistent Akshat Persistent Persistent Herald Aepona Parx Parx Aepona Aepona Valista Persistent
No. Subsidiary Systems, Systems Systems Systems Systems Telecom Corporation Systems Systems Technologies Holdings Werk AG Consulting Group Limited Limited Systems
Company Inc. Pte. Ltd. France Malaysia Germany Solutions (dba Rgen Mexico, Israel Ltd. Inc. Limited GmbH Limited Lanka
SAS Sdn. Bhd. GmbH Inc. Solutions)# S.A. de C.V. (Private)
Limited
1 Reporting currency USD SGD EUR MYR EUR USD USD MXN ILS USD USD CHF EUR GBP GBP EUR LKR
Exchange rate on 69.11 51.00 77.62 16.94 77.62 69.11 69.11 3.58 19.05 69.11 69.11 69.39 77.62 90.50 90.50 77.62 0.39
the last date of the
Financial year (`)
Financial Year March 31, March 31, March 31, March 31, March 31, March 31, March 31, March 31, March 31, March 31, March 31, March 31, March 31, March 31, March 31, March 31, March 31,
Ending On 2019 2019 2019 2019 2019 2019 2019# 2019 2019 2019 2019 2019 2019 2019 2019 2019 2019
2 Share capital 2,478.01 15.50 97.47 102.25 713.01 0.0001 - 3.65 6.78 0.08 59.42 16.58 1.90 58.19 1,230.62 36.25 0.01
3 Share application - - - - 78.72 - - - - - - - - - - - -
money pending
allotment
4 Reserves & Surplus 761.78 261.93 65.24 249.11 (27.30) (225.16) - (15.43) 105.12 (10.17) 96.57 41.81 (41.60) (155.83) (1,661.72) 209.23 139.77
5 Total assets 7,137.52 292.73 414.41 406.58 704.12 584.57 - 85.80 273.27 3.05 155.98 290.94 164.07 122.69 98.91 245.52 191.50
6 Total Liabilities 7,137.52 292.73 414.41 406.58 704.12 584.57 - 85.80 273.27 3.05 155.98 290.94 164.07 122.69 98.91 245.52 191.50
7 Investments 365.14 - - - 595.12 - - - - - 155.98 2.03 - 122.69 - 0.01 -
8 Turnover 19,727.60 125.77 972.35 468.81 46.07 1,283.97 13.36 212.90 524.73 - - 474.46 467.45 - 397.34 - 210.99
9 Profit / (Loss) (87.15) 20.76 54.47 124.46 (22.43) 31.42 (0.92) (14.51) 33.73 (12.88) - 20.31 (88.41) (1,360.89) (76.25) 14.95 33.03
before taxation
10 Provision for 87.61 8.96 11.10 1.05 (7.24) 6.82 - 7.78 5.62 (2.59) - 5.31 (28.53) - 20.60 - (1.59)
taxation
11 Profit / (Loss) (174.76) 11.80 43.37 123.41 (15.19) 24.60 (0.92) (22.29) 28.11 (10.29) - 15.00 (59.88) (1,360.89) (96.85) 14.95 34.62
after taxation
12 Proposed dividend - - - - - - - - - - - - - - - - -
13 % of shareholding 100% 100% 100% 100% 100% 100%* 100% # 100%* 100%* 100%* 100%* 100%** 100%*** 100%**** 100%***** 100%***** 100%******
* Wholly owned subsidiaries of Persistent Systems, Inc., a wholly owned subsidiary of Persistent Systems Limited.
** Wholly owned subsidiaries of Persistent Systems Germany GmbH, a wholly owned subsidiary of Persistent Systems Limited.
*** Wholly owned subsidiaries of Parx Werk AG which is a wholly owned subsidiary of Persistent Systems Germany GmbH.
**** Wholly owned subsidiary of Aepona Holdings Limited which is a wholly owned subsidiary of Persistent Systems, Inc.
***** Wholly owned subsidiaries of Aepona Group Limited, which is a wholly owned subsidiary of Aepona Holdings Limited.
****** Wholly owned subsidiary of Valista Limited, which is a wholly owned subsidiary of Aepona Group Limited.
# Akshat Corporation (dba RGen Solutions) was a wholly owned subsidiary of Persistent Systems Inc. and was dissolved on December 21, 2018.

For and on behalf of the Board of Directors

Dr. Anand Deshpande Kiran Umrootkar
Chairman & Managing Director Director
DIN: 00005721 DIN: 00326672
Shaping the future of software driven business

Sunil Sapre
Executive Driector and Amit Atre
Chief Financial Officer Company Secretary

Consolidated Financials • 259

Pune, April 27 2019 DIN: 06475949 Membership No. A20507
 Shaping the future of software driven business

Form AOC-1 Part B

Statement pursuant to Section 129 (3) of the Companies Act, 2013

related to Associate Companies
(In ` million except no. of shares held)

Name of Associate Klisma e-Services Private Limited

Latest audited Balance Sheet Date March 31, 2018
Shares of Associate held by the company on the year end
No. 5,000
Amount of Investment in Associates 0.05
Extend of Holding % 50%
Description of how there is significant influence By virtue of shareholding - More than 20%
Reason why the associate is not consolidated Not Applicable
Networth attributable to Shareholding as per latest audited (16.89)
Balance Sheet
Profit / (Loss) for the year 2018-19
i. Considered in Consolidation * -
i. Not Considered in Consolidation * -
*The share of loss in Klisma e-Services Private Limited to the extent of the investment made by Persistent Systems Limited in
Klisma e-Services Private Limited (` 0.05 Million) has been provided for in the standalone financial statements of Persistent
Systems Limited in FY 2013-14.

For and on behalf of the Board of Directors

Dr. Anand Deshpande Kiran Umrootkar
Chairman & Managing Director Director
DIN: 00005721 DIN: 00326672
Sunil Sapre
Executive Director and Amit Atre
Chief Financial Officer Company Secretary
Pune, April 27, 2019 DIN: 06475949 Membership No. A20507

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260 • Annual Report 2018-19

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Unconsolidated
Financials
 Shaping the future of software driven business

Independent Auditor’s Report

To The Members of Persistent Systems Limited
Report on the Audit of Standalone Financial Statements
Opinion
We have audited the accompanying Standalone Financial statements (“the Financial Statements”) of Persistent Systems
Limited (“the Company”), which comprise the Balance Sheet as at 31 March 2019, the Statement of Profit and Loss (including
Other Comprehensive Income), the Statement of Cash Flows and the Statement of Changes in Equity for the year then ended
on that date, and a summary of 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, the aforesaid 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 prescribed under section 133 of the Act read with the Companies
(Indian Accounting Standards) Rules, 2015, as amended, (“Ind AS”) and other accounting principles generally accepted in India,
of the state of affairs of the Company as at 31 March 2019, profit, total comprehensive income, its cash flows and the changes
in equity for the year ended on that date.
Basis for Opinion
We conducted our audit of the Financial Statements in accordance with the Standards on Auditing specified under section
143(10) of the Act (SAs). Our responsibilities under those Standards are further described in the Auditor’s Responsibility for the
Audit of the 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 made thereunder, and we have fulfilled
our other ethical responsibilities in accordance with these requirements and the ICAI’s Code of Ethics. We believe that the audit
evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the Financial Statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Financial
Statements of the current year. 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. We have determined
the matters described below to be the Key Audit Matters to be communicated in our report.

Sr. No. Key Audit Matter Auditor’s Response

1 Revenue Recognition – Ind AS 115 Principal Audit Procedures
We assessed the Group’s process to identify the impact of adoption of
Appropriateness of recognition, measurement, presentation
the new revenue accounting standard.
and disclosures of revenues and other related balances in
view of adoption of Ind AS 115 “Revenue from Contracts Our audit approach consisted testing of the design and operating
with Customers” (new revenue accounting standard) effectiveness of the internal controls and substantive testing as follows:
The application of the new revenue accounting standard • Evaluated the design of internal controls relating to implementation
involves certain key judgements relating to identification of the new revenue accounting standard.
of distinct performance obligations, determination of • Selected a sample of continuing and new contracts, and tested
transaction price of the identified performance obligations, the operating effectiveness of the internal control, relating
the appropriateness of the basis used to measure revenue to identification of the distinct performance obligations and
recognized over a period. Revenue share income from one of determination of transaction price. We carried out a combination of
the main customers is accrued as a % of total sales made by procedures involving enquiry and observation, re-performance and
the customer during the period. Calculation of total sales for inspection of evidence in respect of operation of these controls.
the period is finalized by the customer post the period end. • Selected a sample of continuing and new contracts and performed
Accrual of revenue share income thereon is therefore, based the following procedures:
on the management’s estimate as of the period end date.
• Read, analysed and identified the distinct performance obligations
in these contracts.
• Considered the terms of the contracts to determine the transaction
price including any variable consideration to verify the transaction
price used to compute revenue and to test the basis of estimation
of the variable consideration.

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 Shaping the future of software driven business

Additionally, new revenue accounting standard contains • Samples in respect of revenue recorded for time and material
disclosures which involves collation of information in respect of contracts were tested using a combination of approved time
disaggregated revenue and periods over which the remaining sheets including customer acceptances, subsequent invoicing and
performance obligations will be satisfied subsequent to the historical trend of collections and disputes.
balance sheet date. • In respect of samples relating to fixed price contracts, progress
Refer Note 3(h) to the Standalone Financial Statements. towards satisfaction of performance obligation used to compute
recorded revenue was verified with actual and estimated efforts
from the time recording and budgeting systems. We also tested
the access and change management controls relating to these
systems.
• Performed analytical procedures for reasonableness of revenues
disclosed by type and service offerings.
• We reviewed the collation of information and the logic of the
report generated from the revenue tracking system used to
prepare the disclosure relating to the periods over which the
remaining performance obligations will be satisfied subsequent to
the balance sheet date.

2 Provision towards fixed deposits with IL&FS Group: Principal Audit Procedures
The Group had unsecured deposits of Rs 430 million with IL&FS • Evaluated the design and implementation of controls over
Group as on balance sheet date. Due to liquidity constraints accounting of critical accounting estimate which included testing
faced by IL&FS and defaults in repayment till 31 March 2019, of provision of impairment for deposit with IL&FS Group.
the management has provided an expected credit loss (ECL) of • We reviewed the basis adopted by the management in estimating
Rs. 182.50 million as of 31 March 2019. Estimation of ECL, in the the ECL and past as well as forward looking information available
present scenario, involves significant amount of judgement. around the matter, against the requirements of applicable Indian
Refer to Note 44 to the Standalone Financial Statements. Accounting Standards.

Information other than the Financial Statements and Auditor’s Report thereon
The Company’s Board of Directors is responsible for the preparation of the other information. The other information comprises
the information included in the Overview of Financial Performance, Report of the Directors, Report on Corporate Governance,
Business Responsibility Report, Management Discussion and Analysis, and Report on Risk Management (collectively referred
as “other information”) but does not include the Financial Statements and our auditor’s report thereon. Other information is
expected to be made available to us after the date of this auditor’s report.
Management’s Responsibility for the Financial Statements
The Company’s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation
of these 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 Ind AS 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 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.
In preparing the Financial Statements, management is 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
management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the Company’s financial reporting process.
Auditor’s Responsibility for the Audit of the 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 SAs will always detect a material

Unconsolidated Financials • 263

 Shaping the future of software driven business

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.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout
the audit. We also:
• Identify and assess the risks of material misstatement of the 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.
• Obtain an understanding of internal financial 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 in place 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.
• 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.
• 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.
Materiality is the magnitude of misstatements in the Financial Statements that, individually or in aggregate, makes it probable
that the economic decisions of a reasonably knowledgeable user of the Financial Statements may be influenced. We consider
quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our
work; and (ii) to evaluate the effect of any identified misstatements in the Financial Statements.
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.
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.
From the matters communicated with those charged with governance, we determine those matters that were of most
significance in the audit of the standalone 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
1. As required by Section 143(3) of the Act, based on our audit we report 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 purposes of our audit;
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 Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, the Cash Flow Statement
and Statement of Changes in Equity dealt with by this Report are in agreement with the relevant books of account;
d) In our opinion, the aforesaid Financial statements comply with the Ind AS specified under Section 133 of the Act.

264 • Annual Report 2018-19

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e) On the basis of the written representations received from the directors of the Company as on 31 March 2019 taken on
record by the Board of Directors, none of the directors is disqualified as on 31 March 2019 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 over financial reporting of the Company and the
operating effectiveness of such controls, refer to our separate Report in “Annexure A”. Our report expresses an
unmodified opinion on the adequacy and operating effectiveness of the Company’s internal financial controls over
financial reporting;
g) With respect to the other matters to be included in the Auditor’s Report in accordance with the requirements of
section 197(16) of the Act, as amended, in our opinion and to the best of our information and according to the
explanations given to us, the remuneration paid by the Company to its directors during the year is in accordance with
the provisions of section 197 of the Act.
h) With respect to the other matters to be included in the Auditors’ 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 has disclosed the impact of pending litigations on its financial position in its Financial Statements;
ii. The Company has made provision, as required under the applicable law or accounting standards, for material
foreseeable losses, if any, on long-term contracts including derivative contracts;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and
Protection Fund by the Company.
2. As required by the Companies (Auditor’s Report) Order, 2016 (“the Order”) issued by the Central Government in terms of
Section 143(11) of the Act, we give in “Annexure B” a statement on the matters specified in paragraphs 3 and 4 of the Order.

For DELOITTE HASKINS & SELLS LLP

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

 Hemant M. Joshi
Place: Pune Partner
Date: 27 April 2019 (Membership No. 038019)

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 Shaping the future of software driven business

ANNEXURE “A” TO THE INDEPENDENT AUDITOR’S REPORT

(Referred to in paragraph 1(f) under ‘Report on Other Legal and Regulatory Requirements’ section of our report of even
date)
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of
the Companies Act, 2013 (“the Act”)
We have audited the internal financial controls over financial reporting of Persistent Systems Limited (“the Company”) as of
31 March 2019 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended
on that date.
Management’s Responsibility for Internal Financial Controls
The Company’s Board of Directors is 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 issued by the Institute
of Chartered Accountants 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 its business,
including adherence to 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
Our responsibility is to express an opinion on the Company’s internal financial controls over financial reporting based on our
audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial
Reporting (the “Guidance Note”) issued by the Institute of Chartered Accountants of India and the Standards on Auditing
prescribed under Section 143(10) of the Act, to the extent applicable to an audit of internal financial controls. 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 over financial reporting was established and maintained and if
such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system
over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting
included obtaining an understanding of internal financial controls over financial reporting, 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.
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 system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company’s internal financial control over financial reporting 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 control over financial reporting includes 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
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 Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, 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 over financial reporting to future periods are subject to the risk
that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedures may deteriorate.

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Opinion
In our opinion, to the best of our information and according to the explanations given to us the Company has, in all material
respects, an adequate internal financial controls system over financial reporting and such internal financial controls over
financial reporting were operating effectively as at 31 March 2019, 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 issued by the
Institute of Chartered Accountants of India.

For DELOITTE HASKINS & SELLS LLP

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

 Hemant M. Joshi
Place: Pune Partner
Date: 27 April 2019 (Membership No. 038019)

Unconsolidated Financials • 267

 Shaping the future of software driven business

ANNEXURE “B”TO THE INDEPENDENT AUDITOR’S REPORT

(Referred to in paragraph 2 under ‘Report on Other Legal and Regulatory Requirements’ section of our report of
even date)
Re: Persistent Systems Limited (“the Company”)
(i) (a) The company is maintaining proper records showing full particulars, including quantitative details and situation of
fixed assets;
(b) There is a regular programme of verification which, in our opinion, is reasonable having regards to the size of the
Company and the nature of its assets. No material discrepancies were noticed on such verification;
(c) According to the information and explanations given to us and the records perused by us and based on the perusal
of the registered documents provided to us, we report that, the title deeds, comprising all the immovable properties
of land and buildings which are freehold, are held in the name of the Company as at the balance sheet date.
(ii) Considering the nature of the Company, the provisions of clause 3 (ii) of the Order pertaining to the physical verification
of inventory is not applicable.
(iii) During the year the Company has not granted any loans, secured or unsecured to companies, firms or other parties
covered in the register maintained under section 189 of the Act.
(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 grant of loans, making investments and providing guarantees
and securities, as applicable.
(v) The Company has not accepted public deposits during the year and does not have any unclaimed deposits as at 31 March
2019 and therefore, the provisions of the clause 3 (v) of the Order are not applicable.
(vi) To the best of our knowledge and as explained, the Central Government has not prescribed maintenance of cost records
under sub-section (l) of section 148 of the Act for the software services rendered by the Company.
(vii) According to the information and explanations given to us, in respect of statutory dues:
(a) The Company is regular in depositing undisputed statutory dues including Provident Fund, Employees’ State
Insurance, Income-tax, Sales-tax, Goods and Services Tax, Service Tax, Duty of Customs, Duty of Excise, Value Added
Tax, Cess and any other statutory dues with the appropriate authorities and there are no arrears of outstanding
statutory dues as at the last day of the financial year concerned for a period of more than six months from the date
they became payable.
(b) There were no undisputed amounts payable in respect of Provident Fund, Employees’ State Insurance, Income-tax,
Sales Tax, Goods and Services Tax, Service Tax, Value Added Tax, Cess and other material statutory dues in arrears
as at 31 March 2019 for a period of more than six months from the date they became payable.
(c) Details of dues of Income-tax, Sales Tax, Goods and Services Tax, Service Tax, Customs Duty, Excise Duty, and Value
Added Tax which have not been deposited as on 31 March 2019 on account of disputes are given below:
` In Mn.

Name of Statute Forum where Dispute is Pending Period to Amt. Amt.

/ Nature of Dues which the involved unpaid
Amount
Relates
Honourable High Court of Judicature At Bombay FY 2005-06 38.08 Nil
to 2007-08
The Income Tax Honourable High Court of Judicature At Bombay FY 2009-10 20.84 Nil
Act, 1961 Commissioner of Income Tax (Appeals) FY 2013-14 28.57 3.36
Commissioner of Income Tax (Appeals) FY 2014-15 42.14 Nil
Commissioner of Income Tax (Appeals) FY 2015-16 29.85 28.35
Maharashtra Value Joint Commissioner (Appeals) – VAT FY 2005-06 to 26.51 3.07
Added Tax Act, 2013-14
2002 / Sales Tax

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Name of Statute Forum where Dispute is Pending Period to Amt. Amt.

/ Nature of Dues which the involved unpaid
Amount
Relates
Honourable Supreme Court FY 2004-05 to 3.89 Nil
The Finance Act, 2007-08
1994 / Service Tax CESTAT FY 2011-12 to 173.78 8.20
2015-16
(viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in the
repayment of loans from the government. The Company has not taken any loans or borrowings from banks and financial
institutions and has not issued debentures during the year.
(ix) The Company has not raised moneys by way of initial public offer or further public offer (including debt instruments) or
term loans and hence reporting under clause 3 (ix) of the Order is not applicable.
(x) To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company and
no material fraud on the Company by its officers or employees has been noticed or reported during the year.
(xi) In our opinion and according to the information and explanations given to us, the Company has paid / provided managerial
remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V
to the Act.
(xii) The Company is not a Nidhi Company and hence reporting under clause 3 (xii) of the Order is not applicable.
(xiii) In our opinion and according to the information and explanations given to us the Company is in compliance with Section
188 and 177 of the Act where applicable, for all transactions with the related parties and the details of related party
transactions have been disclosed in the financial statements as required by the applicable accounting standards.
(xiv) During the year the Company has not made any preferential allotment or private placement of shares or fully or partly
convertible debentures and hence reporting under clause 3 (xiv) of the Order is not applicable.
(xv) In our opinion and according to the information and explanations given to us, during the year the Company has not
entered into any non-cash transactions with any of its directors or persons connected with him and hence reporting under
clause 3 (xv) of the Order is not applicable.
(xvi) The Company is not required to be registered under section 45-I of the Reserve Bank of India Act, 1934

For DELOITTE HASKINS & SELLS LLP

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

 Hemant M. Joshi
Place: Pune Partner
Date: 27 April 2019 (Membership No. 038019)

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 Shaping the future of software driven business

Balance Sheet as at March 31, 2019

Notes As at As at
March 31, 2019 March 31, 2018
In ` Million In ` Million
ASSETS
Non-current assets
Property, Plant and Equipment 5.1 2,130.26 2,323.88
Capital work-in-progress 11.81 7.32
Other Intangible assets 5.2 83.86 117.48
Intangible assets under development 60.32 7.44
2,286.25 2,456.12
Financial assets
- Investments 6 7,544.01 5,504.85
- Loans 7 116.01 945.81
- Other non current financial assets 8 428.01 37.43
Deferred tax assets (net) 9 55.56 31.68
Other non-current assets 10 68.35 64.00
10,498.19 9,039.89
Current assets
Financial assets
- Investments 11 3,295.53 5,916.31
- Trade receivables (net) 12 2,429.85 3,425.07
- Cash and cash equivalents 13 565.12 305.27
- Other bank balances 14 4,654.22 876.62
- Loans 15 6.63 4.47
- Other current financial assets 16 2,195.74 1,847.70
Other current assets 17 1,243.44 1,374.62
14,390.53 13,750.06
TOTAL 24,888.72 22,789.95
EQUITY AND LIABILITIES
EQUITY
Equity share capital 4 791.19 800.00
Other equity 21,420.71 19,732.04
22,211.90 20,532.04
LIABILITIES
Non- current liabilities
Financial liabilities
- Borrowings 18 11.97 16.55
Provisions 19 158.46 143.37
170.43 159.92
Current liabilities
Financial liabilities
- Trade payables [(dues of micro and small enterprises: ` 15.63 million 20 1,019.07 716.73
(Previous year: ` 3.03 million)]
- Other financial liabilities 21 140.00 290.86
Other current liabilities 22 630.28 562.83
Provisions 23 664.11 428.03
Current tax liabilities (net) 52.93 99.54
2,506.39 2,097.99
TOTAL 24,888.72 22,789.95
Summary of significant accounting policies 3
The accompanying notes are an integral part of the financial statements.
As per our report of even date

For Deloitte Haskins & Sells LLP For and on behalf of the Board of Directors of
Chartered Accountants Persistent Systems Limited
ICAI Firm registration no. 117366W/W-100018

Hemant M. Joshi Dr. Anand Deshpande Kiran Umrootkar

Partner Chairman and Managing Director Director
Membership no. 038019 DIN: 00005721 DIN: 00326672
Sunil Sapre Amit Atre
Executive Director and Company Secretary
Chief Financial Officer Membership No. A20507
DIN: 06475949
Place: Pune Place: Pune
Date: April 27, 2019 Date: April 27, 2019

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 Shaping the future of software driven business

Statement of Profit and Loss for the year ended March 31, 2019
Notes For the year ended
March 31, 2019 March 31, 2018
In ` Million In ` Million
Income
Revenue from operations (net) 24 19,598.67 17,327.49
Other income 25 1,037.90 1,276.82
Total income (A) 20,636.57 18,604.31
Expenses
Employee benefits expense 26.1 9,491.23 8,740.66
Cost of professionals 26.2 2,195.21 2,133.03
Finance costs 0.51 0.62
Depreciation and amortization expense 5.3 458.84 537.81
Other expenses 27 4,107.02 2,640.03
Total expenses (B) 16,252.81 14,052.15
Profit before tax (A - B) 4,383.76 4,552.16
Tax expense (refer note 30)
Current tax 1,283.16 1,175.90
Tax credit in respect of earlier years 65.00 (3.99)
Deferred tax charge / (credit) (114.48) (40.92)
Total tax expense 1,233.68 1,130.99
Net profit for the year (C) 3,150.08 3,421.17
Other comprehensive income
Items that will not be reclassified to profit and loss (D)
- Remeasurements of the defined benefit liabilities / (asset) (net of tax) (49.83) 104.97
(49.83) 104.97
Items that may be reclassified to profit and loss (E)
- Effective portion of cash flow hedge (net of tax) 168.43 (191.81)
168.43 (191.81)
Total other comprehensive income for the year (D) + (E) 118.60 (86.84)
Total comprehensive income for the year (C) + (D) + (E) 3,268.68 3,334.33
Earnings per equity share 28
[Nominal value of share ` 10 (previous year: ` 10)]
Basic (In `) 39.40 42.76
Diluted (In `) 39.40 42.76
Summary of significant accounting policies 3

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

As per our report of even date

For Deloitte Haskins & Sells LLP For and on behalf of the Board of Directors of
Chartered Accountants Persistent Systems Limited
ICAI Firm registration no. 117366W/W-100018

Hemant M. Joshi Dr. Anand Deshpande Kiran Umrootkar

Partner Chairman and Managing Director Director
Membership no. 038019 DIN: 00005721 DIN: 00326672
Sunil Sapre Amit Atre
Executive Director and Company Secretary
Chief Financial Officer Membership No. A20507
DIN: 06475949
Place: Pune Place: Pune
Date: April 27, 2019 Date: April 27, 2019

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 Shaping the future of software driven business

Cash Flow Statement for the year ended March 31, 2019
For the year ended
March 31, 2019 March 31, 2018
In ` Million In ` Million
Cash flow from operating activities
Profit before tax 4,383.76 4,552.16
Adjustments for:
Interest income (288.82) (191.60)
Finance cost 0.51 0.62
Dividend income (392.26) (259.73)
Depreciation and amortization expense 458.84 537.81
Amortization of lease premium 0.58 0.58
Unrealised exchange loss/ (gain) (net) 80.81 (177.50)
Exchange (gain) / loss on derivative contracts 20.51 76.73
Exchange (gain) / loss on translation of foreign currency cash and cash 75.53 (111.75)
equivalents
Donations in kind 1.40 0.16
Bad debts 23.55 157.62
Provision for doubtful debts (net)/ (Provision for doubtful debts written back) (net) (6.99) (146.42)
Employee stock compensation expenses - 2.23
Provision for doubtful deposits and advances (net) 182.50 -
Remeasurements of the defined benefit liabilities / (asset) (before tax effects) (49.83) 146.57
Advances written back - (17.56)
(Gain) / loss on fair valuation of mutual funds 76.95 18.92
(Profit) on sale of investments (net) (366.09) (186.84)
(Profit) on sale of fixed assets (net) (3.77) (2.47)
Operating profit before working capital changes 4,197.18 4,399.53
Movements in working capital :
(Increase)/ Decrease in non-current and current loans 0.16 0.70
(Increase)/Decrease in other non current assets (2.29) (3.18)
(Increase)/Decrease in other current financial assets (864.55) (156.58)
(Increase)/Decrease in other current assets 131.18 (853.41)
(Increase)/Decrease in trade receivables 875.95 1,477.87
Increase/(Decrease) in trade payables and current liabilities 202.29 (92.85)
Increase /(Decrease) in provisions 251.17 (92.33)
Operating profit after working capital changes 4,791.09 4,679.75
Direct taxes paid (net of refunds) (1,394.77) (1,119.68)
Net cash generated from / (used in) from operating activities (A) 3,396.32 3,560.07
Cash flows from investing activities
Payment towards capital expenditure (including intangible assets) (268.87) (232.81)
Proceeds from sale of fixed assets 3.82 2.94
Share application money paid (78.72) -
Purchase of bonds (1,175.31) (595.43)
Proceeds from sale of bonds 199.43 -
Investments in mutual funds (22,418.13) (15,502.22)
Proceeds from sale / maturity of mutual funds 25,010.64 14,290.26
Investments in bank deposits having original maturity over three months (8,000.82) (225.12)
Investments in deposit with financial institutions (300.00) (595.35)
Maturity of bank deposits having original maturity over three months 4,044.26 42.26
Maturity of deposit with financial institutions 650.35 -
Inter corporate deposits (placed) / refunded 132.74 (429.37)
Interest received 341.93 124.91
Dividend received 392.26 259.73
Net cash generated from / (used in) investing activities (B) (1,466.42) (2,860.20)
Cash flows from financing activities
(Repayment of) long term borrowings (4.58) (4.58)
Shares bought back (571.41) -
Dividend paid (879.14) (799.79)
Tax on dividend paid (137.41) (150.23)
Interest paid (1.12) (1.37)
Net cash generated from / (used in) financing activities (C) (1,593.66) (955.97)

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Cash Flow Statement for the year ended March 31, 2019
For the year ended

March 31, 2019 March 31, 2018

In ` Million In ` Million

Net increase / (decrease) in cash and cash equivalents (A + B + C) 336.24 (256.10)

Cash and cash equivalents at the beginning of the year 306.68 451.03
Effect of exchange differences on translation of foreign currency cash and cash (75.53) 111.75
equivalents
Cash and cash equivalents at the end of the year 567.39 306.68
Components of cash and cash equivalents

Cash on hand (Refer note 13) 0.11 0.11

Balances with banks
On current accounts # (Refer note 13) 126.71 158.58
On saving accounts (Refer note 13) 0.91 0.75
On Exchange Earner's Foreign Currency accounts (Refer note 13) 114.91 145.83
On unpaid dividend accounts* (Refer note 14) 2.27 1.41
On Escrow accounts** (Refer note 13) 92.94 -
On deposit accounts with original maturity less than three months (Refer note 13) 229.54 -
Cash and cash equivalents 567.39 306.68

# Out of the balance as at March 31, 2019, the Company can utilise ` 2.15 million only towards research and development
activities specified in the agreement. There were no such restrictions for utilisation of the cash and cash equivalent balance
as at March 31, 2018.
* The Company can utilize these balances only towards settlement of the respective unpaid dividend.
** The Company can utilize these balances only towards buy back of equity shares.
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 Deloitte Haskins & Sells LLP For and on behalf of the Board of Directors of
Chartered Accountants Persistent Systems Limited
ICAI Firm registration no. 117366W/W-100018

Hemant M. Joshi Dr. Anand Deshpande Kiran Umrootkar

Partner Chairman and Managing Director Director
Membership no. 038019 DIN: 00005721 DIN: 00326672
Sunil Sapre Amit Atre
Executive Director and Company Secretary
Chief Financial Officer Membership No. A20507
DIN: 06475949
Place: Pune Place: Pune
Date: April 27, 2019 Date: April 27, 2019

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Statement of changes in Equity for the year ended March 31, 2019
A. Equity share capital
(Refer note 4)
(In ` Million)
Balance as at April 1, 2018 Changes in equity share capital during the year Balance as at March 31, 2019
(refer note 4d)

800.00 (8.81) 791.19

(In ` Million)
Balance as at April 1, 2017 Changes in equity share capital during the year Balance as at March 31, 2018

800.00 - 800.00

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Statement of changes in Equity for the year ended March 31, 2019
B. Other equity
(In ` Million)
Items of other
Reserves and surplus comprehensive
income
Particulars Share Total
Capital Special Economic Effective portion
Securities General options Retained
outstanding redemption Zone re-investment of cash flow
premium reserve earnings
reserve reserve hedges
reserve
Balance as at April 1, 2018 1,336.70 9,296.47 90.52 - - 8,991.72 16.63 19,732.04
Net profit for the year - - - - - 3,150.08 - 3,150.08
Other comprehensive income for the year - - - - - (49.83) 168.43 118.60
Dividend - - - - - (880.00) - (880.00)
Tax on dividend - - - - - (137.41) - (137.41)
Transfer to general reserve - 1,260.03 - - - (1,260.03) - -
Transfer to capital redemption reserve - - - 8.81 - (8.81) - -
Transfer to Special Economic Zone re-investment reserve - - - - 70.00 (70.00) - -
Adjustments towards employees stock options - 14.23 (14.23) - - - - -
Other changes during the period - - - - - - - -
Utilised towards buy back of shares (refer note 4d) (562.60) - - - - - - (562.60)
Balance at March 31, 2019 774.10 10,570.73 76.29 8.81 70.00 9,735.72 185.06 21,420.71
(In ` Million)

Items of other
Reserves and surplus comprehensive
income
Particulars Share Total
Capital Special Economic Effective portion
Securities General options Retained
outstanding redemption Zone re-investment of cash flow
premium reserve earnings
reserve reserve hedges
reserve
Balance as at April 1, 2017 1,336.70 7,827.60 187.12 - - 7,784.28 208.44 17,344.14
Net profit for the year - - - - - 3,421.17 - 3,421.17
Other comprehensive income for the year - - - - - 104.97 (191.81) (86.84)
Dividend - - - - - (800.00) - (800.00)
Tax on dividend - - - - - (150.23) - (150.23)
Transfer to general reserve - 1,368.47 - - - (1,368.47) - -
Employee stock compensation expenses - - 2.23 - - - - 2.23
Employee stock compensation expenses of subsidiaries - - 1.57 - - - - 1.57
Adjustments towards employees stock options - 100.40 (100.40) - - - - -
Balance at March 31, 2018 1,336.70 9,296.47 90.52 - - 8,991.72 16.63 19,732.04
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 Deloitte Haskins & Sells LLP For and on behalf of the Board of Directors of
Chartered Accountants Persistent Systems Limited
ICAI Firm registration no. 117366W/W-100018

Hemant M. Joshi Dr. Anand Deshpande Kiran Umrootkar

Partner Chairman and Managing Director Director
Membership no. 038019 DIN: 00005721 DIN: 00326672
Sunil Sapre Amit Atre
Executive Director and Company Secretary
Chief Financial Officer Membership No. A20507
DIN: 06475949
Place: Pune Place: Pune
Date: April 27, 2019 Date: April 27, 2019

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Statement of changes in Equity for the year ended March 31, 2019
Nature and purpose of reserves
a) Securities premium reserve
Securities premium reserve is used to record the premium on issue of shares. The reserve is utilised in accordance with
the provisions of Section 52 of the Companies Act, 2013.
b) General reserve
General reserve represents amounts transferred from profit for the period and from Share options outstanding reserve on
exercise / expiry of employee share options. It is a free reserve as per section 2 (43) of the Companies Act, 2013.
c) 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.
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 has been created out of the profit in terms of the provisions of Section
10AA(1)(ii) of the Income tax Act, 1961. The reserve should be utilised by the Company for acquiring new plant and
machinery for the purpose of its business in terms of Section 10AA(2) of the Income tax Act, 1961.
f) Cash flow hedge reserve
The cash flow hedge reserve represents the cumulative effective portion of gains or losses arising on changes in fair
value of hedging instruments entered into towards highly probable transactions. Such gains or losses are subsequently
recognised in the statement of profit and loss in the period in which such transaction occurs.

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Notes forming part of financial statements

1. Nature of operations
Persistent Systems Limited (the “Company”) is a public Company domiciled in India and incorporated under the provisions
of the Companies Act, 1956 (the “Act”). 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.
2. Basis of preparation
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 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.
Statement of compliance
In accordance with the notification issued by the Ministry of Corporate Affairs, the Company has adopted Indian Accounting
Standards (referred to as “Ind AS”) notified under the Companies (Indian Accounting Standards) Rules, 2015.
3. Summary of significant accounting policies
(a) Use of estimates
The preparation of the financial statements in conformity with Ind AS requires the management to make judgments,
estimates and assumptions that affect the reported amounts of revenue, expenses, assets and liabilities and disclosure of
contingent liabilities at the end of period. Although these estimates are based on the management’s best knowledge of
current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a
material adjustment to the carrying amounts of assets or liabilities in future periods.
Critical accounting estimates
i. Revenue recognition
The Company uses the percentage-of-completion method in accounting for its 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.
ii. 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.
iii. 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.

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Notes forming part of financial statements (Contd.)

iv. Provisions
Provisions are determined based on the best estimate 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.
(b) Property, Plant and Equipment
Property, Plant and Equipment are stated at cost, less accumulated depreciation and accumulated impairment losses,
if any. The cost comprises the purchase price and directly attributable costs of bringing the asset to its working
condition for its intended use. Any trade discounts and rebates are deducted in arriving at the purchase price. Capital
work-in-progress includes cost of Property, Plant and Equipment that are not ready to be put to use.
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.
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. 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.
Gains or losses arising from disposal of an intangible asset are measured as the difference between the net disposal
proceeds and the carrying amount of the asset and are recognized in the statement of profit and loss when the asset is
disposed.
Research and development cost
Research costs are expensed as incurred. Development expenditure incurred on an individual project is recognized as an
intangible asset when the Company can demonstrate:
- technical feasibility of completing the intangible asset so that it will be available for use or sale;
- its intention to complete the asset;
- its ability to use or sell the asset;
- how the asset will generate probable future economic benefits;
- the availability of adequate resources to complete the development and to use or sell the asset; and
- the ability to measure reliably the expenditure attributable to the intangible asset during development.
Such development expenditure, until capitalization, is reflected as intangible assets under development.
Following the initial recognition, internally generated intangible assets are carried at cost less accumulated amortization
and accumulated impairment losses, if any. Amortization of internally generated intangible asset begins when the
development is complete and the asset is available for use.
(d) Depreciation and amortization
Depreciation on Property, Plant and Equipment is provided using the Straight Line Method (‘SLM’) over the useful lives of
the assets estimated by the management.

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Notes forming part of financial statements (Contd.)

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
*For these classes of assets, based on internal assessment and independent technical evaluation carried out by external
valuers, the management believes that the useful lives as given above best represent the period over which the
management expects to use these assets. Hence the useful lives of these assets are different from the useful lives as
prescribed under Part C of Schedule II of the Companies Act 2013.
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 commencing from the day the
asset is made available for use.
(e) Financial instruments
i) Financial assets
Initial recognition and measurement
 inancial assets are initially measured at fair value. Transaction costs that are directly attributable to the acquisition of
F
financial assets (other than financial assets at fair value through profit or loss) are added to the fair value of the financial
assets on initial recognition. Transaction costs directly attributable to the acquisition of financial assets at fair value
through profit or loss are recognised immediately in profit or loss.
Subsequent measurement
For the purpose of subsequent measurement, financial assets are classified as:
- 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 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 as
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.
- Forward exchange contracts not intended for trading or speculation purposes, classified as derivative financial
instruments
As per the accounting principles laid down in Ind AS 109 – “Financial Instruments” relating to cash flow hedges,
derivative financial instruments which qualify for cash flow hedge accounting are fair valued at balance sheet date and

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Notes forming part of financial statements (Contd.)

the effective portion of the resultant loss / (gain) is debited / (credited) to the hedge reserve under other comprehensive
income and the ineffective portion is recognized to the statement of profit and loss. Derivative financial instruments
are carried as forward contract receivable when the fair value is positive and as forward contract payable when the fair
value is negative.
Changes in the fair value of derivative instruments that do not qualify for hedge accounting are recognized in the
statement of profit and loss as they arise.
Hedge accounting is discontinued when the hedging instrument expires or is sold, or terminated, or exercised, or no
longer qualifies for hedge accounting. Any cumulative gain or loss on the hedging instrument recognized under other
comprehensive income under other comprehensive income is transferred to the statement of profit and loss when the
forecasted transaction occurs or affects profit or loss or when a hedged transaction is no longer expected to occur.
Derecognition
The Company derecognizes a financial asset when the contractual rights to the cash flows from the asset expire, or when
it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party.
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.
ii) Financial liabilities
Initial recognition and measurement
Financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to issue of
financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are deducted
from the fair value of the financial liabilities on initial recognition. Transaction costs directly attributable to the issue
of financial liabilities at fair value through profit or loss are recognised immediately in profit or loss.
Subsequent measurement
For the purpose of subsequent measurement, financial liabilities are classified as:
- Financial liabilities at amortized cost
Financial liabilities such as loans and borrowings are subsequently measured at amortized cost using the effective
interest rate method. The change in measurements are recognized as finance costs in the statement of profit and
loss.
- 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 as 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 at FVTPL.
Derecognition
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 profit or loss.
iii) Impairment
i) 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.

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Notes forming part of financial statements (Contd.)

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.
ii) Non-financial assets
 The carrying amounts of Property, Plant and Equipment are reviewed at each balance sheet date or whenever there
is any indication of impairment based on internal/external factors. If any indications exist, the Company estimates
the asset’s recoverable amount unless the asset does not generate cash flows that are largely independent of
those from other assets. In such cases, the recoverable amount is determined for the Cash Generating Unit (CGU)
to which the asset belongs. If the recoverable amount of an asset (or CGU) is estimated to be less than its carrying
amount, the carrying amount of the asset (or CGU) is reduced to its recoverable amount. The recoverable amount
is the greater of the asset’s fair value and its value in use. In assessing value in use, the estimated future cash flows
are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the
time value of money and risks specific to the asset.
An impairment loss is recognised in the statement of profit and loss.
Recoverable amount of intangible under development that is not yet available for use is estimated at least at each
financial period end even if there is no indication that the asset is impaired.
(f) Borrowing costs
Borrowing cost includes interest, 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 year they occur
Amendment to Ind AS 23 Borrowing costs: The amendments clarify that if any specific borrowing remains outstanding
after the related asset is ready for its intended use or sale, that borrowing becomes part of the funds that an entity
borrows generally when calculating the capitalisation rate on general borrowings. The Company does not expect any
impact related to this amendment.
(g) Leases
Where the Company is a lessee
Leases, where the lessor effectively retains substantially all the risks and benefits of ownership of the leased item, are
classified as operating leases.
Operating lease payments are recognized as an expense in the statement of profit and loss as per the terms of the lease
agreements.
Ind AS 116 Leases: On March 30, 2019, Ministry of Corporate Affairs has notified Ind AS 116, Leases. Ind AS 116 will replace
the existing leases Standard, Ind AS 17 Leases, and related Interpretations. The Standard sets out the principles for the
recognition, measurement, presentation and disclosure of leases for both parties to a contract i.e., the lessee and the
lessor. Ind AS 116 introduces a single lessee accounting model and requires a lessee to recognize assets and liabilities for
all leases with a term of more than twelve months, unless the underlying asset is of low value. Currently, operating lease
expenses are charged to the statement of Profit & Loss. The Standard also contains enhanced disclosure requirements for
lessees. Ind AS 116 substantially carries forward the lessor accounting requirements in Ind AS 17.
The effective date for adoption of Ind AS 116 is annual periods beginning on or after April 1, 2019. The standard permits
two possible methods of transition:
• Full retrospective – Retrospectively to each prior period presented applying Ind AS 8 Accounting Policies, Changes in
Accounting Estimates and Errors
• Modified retrospective – Retrospectively, with the cumulative effect of initially applying the Standard recognized at the
date of initial application.

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Notes forming part of financial statements (Contd.)

Under modified retrospective approach, the lessee records the lease liability as the present value of the remaining lease
payments, discounted at the incremental borrowing rate and the right of use asset either as:
• Its carrying amount as if the standard had been applied since the commencement date, but discounted at lessee’s
incremental borrowing rate at the date of initial application or
• An amount equal to the lease liability, adjusted by the amount of any prepaid or accrued lease payments related to that
lease recognized under Ind AS 17 immediately before the date of initial application.
Certain practical expedients are available under both the methods.
On completion of evaluation of the effect of adoption of Ind AS 116, the Company is proposing to use the ‘Modified
Retrospective Approach’ for transitioning to Ind AS 116, and take the cumulative adjustment to retained earnings, on
the date of initial application (April 1, 2019). Accordingly, comparatives for the year ended March 31, 2019 will not be
retrospectively adjusted. The Company has elected certain available practical expedients on transition.
The effect of adoption as on transition date would majorly result in an increase in Right of use asset approximately by `
343.51 million and an increase in lease liability approximately by ` 481.30 million.
(h) Revenue recognition
Revenue is measured at the fair value of the consideration received or receivable taking into account the amount of any
trade discounts and volume rebates allowed by the Company. Revenue is recognized to the extent it is probable that the
economic benefits will flow to the Company and the revenue can be reliably measured. The following specific recognition
criteria must also be met before revenue is recognized:
(i) Income from software services and products
Effective April 1, 2018, the Company adopted Ind AS 115 “Revenue from Contracts with Customers” using the cumulative
catch-up transition method, applied to contracts that were not completed as of April 1, 2018. In accordance with the
cumulative catch-up transition method, the previous period’s/ year’s amounts have not been retrospectively adjusted. The
following is a summary of new and/or revised significant accounting policies related to revenue recognition. The effect on
adoption of Ind AS 115 was insignificant.
The company derives revenues primarily from IT services comprising of software development and related services and
from the licensing of software products.
Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects
the consideration expected to receive in exchange for those products or services.
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.
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.
The company has applied the principles under Ind AS 115 to account for revenues from these performance obligations.
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.
The company accounts for volume discounts and pricing incentives to customers as a reduction of revenue based on the
proportionate allocation of the discounts amount to each of the underlying performance obligation that corresponds to
the progress by the customer towards earning the discount. Also, when the level of discount varies with increases in levels
of revenue transactions, the Company recognizes the liability based on its estimate of the customer’s future purchases.

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Notes forming part of financial statements (Contd.)

If it is probable that the criteria for the discount will not be met, or if the amount thereof cannot be estimated reliably,
then discount is not recognized until the payment is probable and the amount can be estimated reliably. The company
recognizes changes in the estimated amount of obligations for discounts in the period in which the change occurs.
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 Service Tax, value added taxes (VAT) on behalf of the government and, therefore, these
are not economic benefits flowing to the Company. Hence, they are excluded from revenue.
(ii) Interest
Interest income is recognized on a time proportion basis taking into account the carrying amount and the effective interest
rate. Interest income is included under the head ‘Other income’ in the statement of profit and loss.
(iii) 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.
(i) Government grants
Government grants are recognised at fair value when there is reasonable assurance that the Company will comply with the
conditions attaching to them and the grants will be received. Grants related to purchase of assets are treated as deferred
income and allocated to income statement over the useful lives of the related assets while grants related to expenses are
deducted in reporting the related expenses in the income statement
(j) 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 reported using the exchange rate prevailing at the reporting date. Non-monetary
items, which are measured in terms of historical cost denominated in a foreign currency are reported using the exchange
rate at the date of the transaction. Non-monetary items which are carried at fair value or other similar valuation
denominated in a foreign currency are reported using the exchange rates at the date when the values were determined.
Exchange differences
Exchange differences arising on conversion / settlement of foreign currency monetary items and on foreign currency
liabilities relating to Property, Plant and Equipment acquisition are recognized as income or expenses in the period in
which they arise.
Translation of foreign operations
The Company presents the financial statements in INR which is the functional currency of the Company.
The assets and liabilities of a foreign operation are translated into the reporting currency (INR) at the exchange rate
prevailing at the reporting date.
(k) Retirement and other employee benefits
(i) 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 basic salary of the eligible 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.

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Notes forming part of financial statements (Contd.)

(ii) Gratuity
Gratuity is a defined benefit obligation plan operated by the Company for its employees covered under Company Gratuity
Scheme. The cost of providing benefit under gratuity plan is determined on the basis of actuarial valuation using the
projected unit credit method at the reporting date and are charged to the statement of profit and loss, except for
the remeasurements, comprising of actuarial gains and losses which are recognized in full in the statement of other
comprehensive income in the reporting period in which they occur. Remeasurements are not reclassified to profit and loss
subsequently.
(iii) 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.
(iv) Leave encashment
Accumulated leave, which is expected to be utilized within the next twelve months, is treated as short-term employee
benefit. The Company 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 Company 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
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. Expense on non-accumulating compensated absences
is recognized in the period in which the absences occur.
The Company 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 for twelve months after the reporting date.
(v) 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.
Amendment to Ind AS 19: plan amendment, curtailment or settlement- On March 30, 2019, Ministry of Corporate Affairs
issued amendments to Ind AS 19, ‘Employee Benefits’, in connection with accounting for plan amendments, curtailments
and settlements.
The amendments require an entity:
• t o use updated assumptions to determine current service cost and net interest for the remainder of the period after a
plan amendment, curtailment or settlement; and
• to recognise in profit or loss as part of past service cost, or a gain or loss on settlement, any reduction in a surplus, even
if that surplus was not previously recognised because of the impact of the asset ceiling.
Effective date for application of this amendment is annual period beginning on or after April 1, 2019. The Company does
not have any impact on account of this amendment.
(l) 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 income taxes reflect the impact of temporary differences between tax base of assets and liabilities and their
carrying amounts. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at
the reporting date.

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Notes forming part of financial statements (Contd.)

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.
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 equity.
Minimum alternate tax (MAT) paid in a period is charged to the statement of profit and loss as current tax. MAT credit
available is recognized as an asset only to the extent that there is convincing evidence that the Company will pay normal
income tax during the period, i.e., the period for which MAT credit is allowed to be carried forward. In the year in which
the Company recognizes MAT credit as an asset in accordance with the Guidance Note on Accounting for Credit Available
in respect of Minimum Alternative Tax under the Income-tax Act, 1961, the said asset is created by way of credit to the
statement of profit and loss and shown as “MAT Credit Entitlement.” The Company reviews the “MAT credit entitlement”
asset at each reporting date and writes down the asset to the extent the Company does not have convincing evidence that
it will pay normal tax during the specified period.
Ind AS 12 Appendix C, Uncertainty over Income Tax Treatments: On March 30, 2019, Ministry of Corporate Affairs
has notified Ind AS 12 Appendix C, Uncertainty over Income Tax Treatments which is to be applied while performing the
determination of taxable profit (or loss), tax bases, unused tax losses, unused tax credits and tax rates, when there is
uncertainty over income tax treatments under Ind AS 12. According to the appendix, companies need to determine the
probability of the relevant tax authority accepting each tax treatment, or group of tax treatments, that the companies
have used or plan to use in their income tax filing which has to be considered to compute the most likely amount or the
expected value of the tax treatment when determining taxable profit (tax loss), tax bases, unused tax losses, unused tax
credits and tax rates.
The standard permits two possible methods of transition - i) Full retrospective approach – Under this approach, Appendix C
will be applied retrospectively to each prior reporting period presented in accordance with Ind AS 8 – Accounting Policies,
Changes in Accounting Estimates and Errors, without using hindsight and ii) Retrospectively with cumulative effect of
initially applying Appendix C recognized by adjusting equity on initial application, without adjusting comparatives.
The effective date for adoption of Ind AS 12 Appendix C is annual periods beginning on or after April 1, 2019.
The Company will adopt the standard on April 1, 2019 and has decided to adjust the cumulative effect in equity on the date
of initial application i.e. April 1, 2019 without adjusting comparatives.
The effect on adoption of Ind AS 12 Appendix C would be insignificant in the standalone financial statements.
Amendment to Ind AS 12 – Income taxes: On March 30, 2019, Ministry of Corporate Affairs issued amendments to the
guidance in Ind AS 12, ‘Income Taxes’, in connection with accounting for dividend distribution taxes.
The amendment clarifies that an entity shall recognise the income tax consequences of dividends in profit or loss, other
comprehensive income or equity according to where the entity originally recognised those past transactions or events.
Effective date for application of this amendment is annual period beginning on or after April 1, 2019. The Company is
currently evaluating the effect of this amendment on the standalone financial statements.

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Notes forming part of financial statements (Contd.)

(m) 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 on the basis of consolidated financial statements which are presented together
with the unconsolidated financial statements.
(n) Earnings per share (EPS)
Basic earnings per share are calculated by dividing the net profit for the year attributable to equity shareholders by the
weighted average number of equity shares outstanding during the year. The weighted average number of equity shares
outstanding during the reporting period is adjusted for events such as bonus issue, bonus element in a rights issue, share
split, and reverse share split (consolidation of shares), if any occurred during the reporting period, that have changed
the number of equity shares outstanding, without a corresponding change in resources. Further, the weighted average
number of equity shares used in computing the basic earnings per share is reduced by the shares held by PSPL ESOP
Management Trust at the balance sheet date, which were obtained by subscription to the shares from finance provided
by the Company.
For the purpose of calculating diluted earnings per share, the net profit for the year attributable to the equity shareholders
and the weighted average number of equity shares outstanding during the year, are adjusted for the effects of all dilutive
potential equity shares.
The number of shares and potential dilutive equity shares are adjusted retrospectively for all periods presented for any
bonus shares issues including for changes effected prior to the approval of the financial statements by the Board of
Directors.
(o) 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 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.
(p) 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.
(q) 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.
(r) Employee stock compensation expenses
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).
In accordance with Ind AS 102 – “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 equity-settled transactions at each reporting date until the vesting date reflects the
extent to which the vesting period has expired and the Company’s best estimate of the number of equity instruments that
will ultimately vest.
The expense or credit recognized in the statement of profit and loss for a period represents the movement in cumulative
expense recognized as at the beginning and end of that period and is recognized in employee benefits expense. 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.

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Notes forming part of financial statements (Contd.)

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.
4. Share capital

As at March 31, 2019 As at March 31, 2018

In ` Million In ` Million
Authorized shares (No. in million)
2,000.00 2,000.00
200 (Previous year: 200) equity shares of ` 10 each
2,000.00 2,000.00
Issued, subscribed and fully paid-up shares (No. in million)
791.19 800.00
79.12 (Previous year: 80) equity shares of ` 10 each
Issued, subscribed and fully paid-up share capital 791.19 800.00

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, 2019 March 31, 2018
No of shares Amount ` No of shares Amount `
Number of shares at the beginning of the year 80.00 800.00 80.00 800.00
Less: Shares bought back 0.88 8.81 - -
Number of shares at the end of the year 79.12 791.19 80.00 800.00

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 Company declared an interim dividend of ` 8 per share on the face value of ` 10 each for the Financial Year 2018-19.
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.
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 For the period of

five years ended five years ended
March 31, 2019 March 31, 2018
No in Million No in Million
Equity shares allotted on March 12, 2015 as fully paid bonus shares by 40.00 40.00
capitalization of securities premium ` 400 million
Equity shares bought back 0.88 -

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Notes forming part of financial statements (Contd.)

d) Buyback of Equity Shares of the Company
The Board of Directors, at its meeting in January 2019, approved the buyback of the Company’s fully paid-up equity shares
of the face value of ` 10 each from its shareholders/beneficial owners excluding promoters, promoter group and persons
who are in control of the Company, via the “open market” route through the stock exchanges, for a total amount not
exceeding ` 2,250 million (“Maximum Buyback Size”), and at a price not exceeding ` 750 per Equity Share (“Maximum
Buyback Price”).
The indicative maximum number of Equity Shares bought back at the above maximum price would be 3,000,000. If the
Equity Shares are bought back at a price below the Maximum Buyback Price of ` 750, the actual number of equity shares
bought back could exceed the above indicative Maximum Buyback quantity but will always be subject to the Maximum
Buyback Size.
The Buyback shall be from the open market purchases through the stock exchanges, by the order matching mechanism
except ‘all or none’ order matching system, as provided under the Buyback Regulations.
The Company will fund the buyback from its securities premium account, free reserves and/or such other source as may
be permitted.
The buyback of equity shares through the stock exchanges commenced on February 8, 2019 and is expected to be
completed by August 7, 2019 or reaching the Maximum Buyback Size, whichever is earlier.
During the period from February 8, 2019 to March 31, 2019, 881,098 equity shares were purchased from the stock
exchanges as follows: (a) 368,851 Equity Shares which have been purchased and extinguished as of March 31, 2019; (b)
447,981 Equity hares which have been purchased but not extinguished as of March 31, 2019; and (c) 64,266 shares which
have been purchased but have not been settled and therefore not extinguished as of March 31, 2019. The Company has
completed the extinguishment of remaining Equity Shares of 512,247 on April 9, 2019.
Consequently, the paid-up capital of the Company has been reduced from ` 800.00 million to ` 791.19 million comprising
of 79,118,902 Equity Shares of ` 10 each.
e) Details of shareholders holding more than 5% shares in the Company

Name of the shareholder* As at As at

March 31, 2019 March 31, 2018
No. in million % Holding No. in million % Holding
Dr. Anand Deshpande jointly with Mrs. Sonali Anand 22.95 29.01 22.93 28.66
Deshpande

* 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.

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288 • Annual Report 2018-19

 Notes forming part of financial statements (Contd.)
5.1 Property, Plant and Equipment
(In ` Million)

Freehold Buildings* Computers Office Plant and Leasehold Furniture Vehicles Total
Land equipments Equipment improvements and
fixtures
Gross block (At cost)
As at April 1, 2018 206.92 2,386.97 1,632.30 53.48 1,377.70 21.12 511.29 4.73 6,194.51
Additions - 0.07 147.45 1.76 21.15 - 4.40 4.66 179.49
Disposals - 0.04 94.82 2.02 22.81 - 0.60 0.95 121.24
As at March 31, 2019 206.92 2,387.00 1,684.93 53.22 1,376.04 21.12 515.09 8.44 6,252.76
Depreciation and impairment
As at April 1, 2018 - 868.36 1,395.62 47.67 1,080.85 15.43 458.28 4.42 3,870.63
Charge for the year - 96.42 159.20 3.11 86.33 2.45 24.79 0.76 373.06
Disposals - 0.03 94.80 2.01 22.80 - 0.60 0.95 121.19
As at March 31, 2019 - 964.75 1,460.02 48.77 1,144.38 17.88 482.47 4.23 4,122.50
Net block
As at March 31, 2019 206.92 1,422.25 224.91 4.45 231.66 3.24 32.62 4.21 2,130.26
As at March 31, 2018 206.92 1,518.61 236.68 5.81 296.85 5.69 53.01 0.31 2,323.88
* Note: Building includes those constructed on leasehold land:
a) Gross block as on March 31, 2019 ` 1,454.06 million (Previous year ` 1,454.10 million)
b) Depreciation charge for the year ` 58.95 million (Previous year ` 58.45 million)
c) Accumulated depreciation as on March 31, 2019 ` 439.96 million (Previous year ` 381.05 million)
d) Net book value as on March 31, 2019 ` 1,014.10 million (Previous year ` 1,073.05 million)

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Unconsolidated Financials • 289

 Notes forming part of financial statements (Contd.)
5.1 Property, Plant and Equipment
(In ` Million)

Freehold Buildings Computers Office Plant and Leasehold Furniture Vehicles Total
Land equipments Equipment improvements and
fixtures
Gross block (At cost)
As at April 1, 2017 206.92 2,366.57 1,565.38 52.09 1,358.96 21.12 500.10 4.73 6,075.87

290 • Annual Report 2018-19

Additions - 20.40 156.27 2.44 45.74 - 11.77 - 236.62
Disposals - - 89.35 1.05 27.00 - 0.58 - 117.98
As at March 31, 2018 206.92 2,386.97 1,632.30 53.48 1,377.70 21.12 511.29 4.73 6,194.51
Depreciation and impairment
As at April 1, 2017 - 772.59 1,290.21 44.84 1,018.03 12.67 432.22 4.21 3,574.77
Charge for the year - 95.77 194.76 3.77 89.46 2.76 26.64 0.21 413.37
Disposals - - 89.35 0.94 26.64 - 0.58 - 117.51
Shaping the future of software driven business

As at March 31, 2018 - 868.36 1,395.62 47.67 1,080.85 15.43 458.28 4.42 3,870.63
Net block
As at March 31, 2018 206.92 1,518.61 236.68 5.81 296.85 5.69 53.01 0.31 2,323.88

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Notes forming part of financial statements (Contd.)

5.2 Other Intangible assets
(In ` Million)

Software Acquired Total

contractual rights
Gross block
As at April 1, 2018 660.92 261.74 922.66
Additions 52.16 - 52.16
As at March 31, 2019 713.08 261.74 974.82
Amortization
As at April 1, 2018 543.44 261.74 805.18
Charge for the year 85.78 - 85.78
As at March 31, 2019 629.22 261.74 890.96
Net block
As at March 31, 2019 83.86 - 83.86
As at March 31, 2018 117.48 - 117.48

(In ` Million)
Software Acquired Total
contractual rights
Gross block
As at April 1, 2017 641.04 261.74 902.78
Additions 19.88 - 19.88
As at March 31, 2018 660.92 261.74 922.66
Amortization
As at April 1, 2017 431.42 249.32 680.74
Charge for the year 112.02 12.42 124.44
As at March 31, 2018 543.44 261.74 805.18
Net block
As at March 31, 2018 117.48 - 117.48
As at March 31, 2017 209.62 12.42 222.04

5.3 Depreciation and amortization

(In ` Million)

For the year ended

March 31, 2019 March 31, 2018
On Property, Plant and Equipment 373.06 413.37
On other intangible assets 85.78 124.44
458.84 537.81

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Notes forming part of financial statements (Contd.)

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

As at As at
March 31, 2019 March 31, 2018
In ` Million In ` Million
Investments carried at cost
Unquoted investments
Investments in equity instruments (Refer note 34)
- In wholly owned subsidiary companies
Persistent Systems, Inc.
402 million (Previous year :402 million) shares of USD 0.10 each, fully paid up 2,478.01 2,478.01
2,478.01 2,478.01
Persistent Systems Pte Ltd.
0.50 million (Previous year:0.5 million) shares of SGD 1 each, fully paid up 15.50 15.50
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
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
102.25 102.25
Persistent Systems Germany GmbH
8.525 million (Previous year: 0.025 million) shares of EUR 1 each, fully paid up 713.19 2.02
713.19 2.02
-In associates
Klisma e-Services Private Limited [Holding 50% (Previous year 50% )]
0.005 million ( Previous year : 0.005 million) shares of ` 10 each, fully paid up 0.05 0.05
Less : Impairment (0.05) (0.05)
- -
Total investments carried at cost (A) 3,406.42 2,695.25

Investments carried at amortised cost

Quoted Investments
In bonds 2,088.35 1,112.47
[Market value ` 2,120.86 million (Previous year ` 1,139.71 million)]
Add: Interest accrued on bonds 68.33 33.64
Total investments carried at amortised cost (B) 2,156.68 1,146.11
Designated as fair value through profit and loss
Quoted Investments
- Investments in mutual funds
Fair value of long term mutual funds (Refer Note 6a) 1,974.91 1,657.49
1,974.91 1,657.49

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Notes forming part of financial statements (Contd.)

As at As at
March 31, 2019 March 31, 2018
In ` Million In ` Million
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) 1,980.91 1,663.49
Total investments (A) + (B) + (C) 7,544.01 5,504.85
Aggregate provision for diminution in value of investments 0.05 0.05
Aggregate amount of quoted investments 4,131.59 2,803.60
Aggregate amount of unquoted investments 3,412.47 2,701.30

* 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 others”
6 a) Details of fair value of investment in long term Mutual Funds (Quoted)

As at As at
March 31, 2019 March 31, 2018
In ` Million In ` Million
ICICI Prudential Mutual Fund 550.21 664.16
Axis Mutual Fund 304.96 -
Kotak Mutual Fund 294.32 214.02
HDFC Mutual Fund 205.96 191.64
Aditya Birla Sun Life Mutual Fund 191.44 157.98
UTI Mutual Fund 160.32 89.43
SBI Mutual Fund 65.18 177.65
Reliance Mutual Fund 58.05 53.81
IDFC Mutual Fund 50.13 108.80
DHFL Pramerica Mutual Fund 32.10 -
DSP Mutual Fund 32.09 -
Sundaram Mutual Fund 30.15 -
1,974.91 1,657.49

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Notes forming part of financial statements (Contd.)

7. Non-current financial assets: Loans (refer note 31)

As at As at
March 31, 2019 March 31, 2018
In ` Million In ` Million
Carried at amortised cost
Loan to related parties
Unsecured, considered good (Refer note 34 and 43)
- Persistent Systems, Inc. - 130.34
- Persistent Systems Germany GmbH - 686.84
Add: Interest accrued but not due on loan - 13.35
- 830.53
Security deposit
Unsecured, considered good 116.01 115.28
Unsecured, credit impaired - 2.19
116.01 117.47
Less: Impairment - (2.19)
116.01 115.28
Other loans and advances
Inter corporate deposits
Unsecured, considered good - -
Unsecured, credit impaired 0.58 0.58
0.58 0.58
Less: Impairment (0.58) (0.58)
- -
116.01 945.81

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

As at As at
March 31, 2019 March 31, 2018
In ` Million In ` Million
Non-current bank balances (Refer note 14) 94.39 1.53
Add: Interest accrued but not due on non-current bank deposits 1.46 0.21
Non-current deposits with banks (Carried at amortised cost) 95.85 1.74
Deposit with financial institutions (Refer note 44) 430.00 35.00
Add: Interest accrued but not due on deposit with financial institutions 5.94 0.69
Less: Credit impaired (182.50) -
253.44 35.69
Investment in Persistent Systems Germany GmbH (Shares pending allotment) 78.72 -
(Refer note 34)
428.01 37.43

9. Deferred tax assets (net)

As at As at
March 31, 2019 March 31, 2018
In ` Million In ` Million
Deferred tax liabilities
Differences in book values and tax base values of block of Property, Plant and 40.92 63.50
Equipment and other intangible assets
Capital gains (net) 99.83 117.36
Others 99.40 8.80
240.15 189.66

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Notes forming part of financial statements (Contd.)

As at As at
March 31, 2019 March 31, 2018
In ` Million In ` Million
Deferred tax assets
Provision for leave encashment 65.51 54.35
Provision for long service awards 62.02 57.34
Provision for doubtful debts 25.74 27.75
Tax Credit 45.73 73.17
Others 96.71 8.73
295.71 221.34
Deferred tax (liability) / assets (net) 55.56 31.68
10. Other non current assets

As at As at
March 31, 2019 March 31, 2018
In ` Million In ` Million
Capital advances (Unsecured, considered good) 2.06 -
Advances recoverable in cash or kind or for value to be received 66.29 64.00
68.35 64.00

11. Current financial assets : Investments (refer note 31)

As at As at
March 31, 2019 March 31, 2018
In ` Million In ` Million
Designated as fair value through profit and loss
- Quoted investments
Investments in mutual funds
Fair value of current mutual funds (Refer Note 11a) 3,295.53 5,916.31
3,295.53 5,916.31
Total carrying amount of investments 3,295.53 5,916.31
Aggregate amount of quoted investments 3,295.53 5,916.31

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

As at As at
March 31, 2019 March 31, 2018
In ` Million In ` Million
UTI Mutual Fund 625.92 823.08
HDFC Mutual Fund 493.59 174.66
Axis Mutual Fund 426.87 743.70
L&T Mutual Fund 407.39 749.22
ICICI Prudential Mutual Fund 399.98 275.33
Aditya Birla Sun Life Mutual Fund 386.73 845.88
SBI Mutual Fund 162.14 50.24
Tata Mutual Fund 115.97 817.81
IDFC Mutual Fund 106.40 349.34
DSP Mutual Fund 103.35 50.39
Sundaram Mutual Fund 67.19 104.15
Reliance Mutual Fund - 190.45
Kotak Mutual Fund - 300.42
DHFL Pramerica Mutual Fund - 441.64
3,295.53 5,916.31

Unconsolidated Financials • 295

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Notes forming part of financial statements (Contd.)

12. Trade receivables (refer note 31)

As at As at
March 31, 2019 March 31, 2018
In ` Million In ` Million
Outstanding for a period exceeding six months from the date they are due
for payment
Unsecured, considered good 1.91 14.52
Unsecured, credit impaired 73.66 80.20
75.57 94.72
Less : Allowance for credit loss (73.66) (80.20)
1.91 14.52
Others
Unsecured, considered good* 2,427.94 3,410.55
Unsecured, credit impaired - -
2,427.94 3,410.55
Less : Allowance for credit loss - -
2,427.94 3,410.55
2,429.85 3,425.07

*Includes dues from related parties (refer note 34)

13. Cash and cash equivalents (refer note 31)

As at As at
March 31, 2019 March 31, 2018
In ` Million In ` Million
Cash and cash equivalents as presented in cash flow statement
Cash on hand 0.11 0.11
Balances with banks
On current accounts * 126.71 158.58
On saving accounts 0.91 0.75
On Exchange Earner's Foreign Currency accounts 114.91 145.83
On deposit accounts with original maturity less than three months 229.54 -
On Escrow account** 92.94 -
565.12 305.27
* Out of the cash and cash equivalent balance as at March 31, 2019, the Company can utilise ` 2.15 million only towards research
and development activities specified in the agreement. There were no such restrictions for utilisation of the cash and cash
equivalent balance as at March 31, 2018.
** The Company can utilize these balances only towards buy back of equity shares.

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Notes forming part of financial statements (Contd.)

14. Other bank balances (refer note 31)

As at As at
March 31, 2019 March 31, 2018
In ` Million In ` Million
Short term bank deposits* 4,687.90 747.03
Add: Interest accrued but not due on deposits with banks 59.90 129.92
Deposits with banks (Carried at amortised cost) 4,747.80 876.95
Less: Deposit with maturity more than twelve months from the Balance Sheet (94.39) (1.53)
date disclosed under non-current financial assets (Refer note 8)
Less: Interest accrued but not due on non-current deposits with banks (1.46) (0.21)
(Refer note 8)
4,651.95 875.21
Balances with banks On unpaid dividend accounts** 2.27 1.41
4,654.22 876.62

* Out of the balance, fixed deposits of ` 87.99 million (Previous year ` 63.78 million) have been earmarked against 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 (refer note 31)

As at As at
March 31, 2019 March 31, 2018
In ` Million In ` Million
Carried at amortised cost
Loan to related parties (refer note 34 and note 43)
Unsecured, credit impaired
- Klisma e-Services Private Limited 27.43 27.43
27.43 27.43
Less: Impairment (27.43) (27.43)
- -
Security deposits
Unsecured, considered good 6.63 4.47
6.63 4.47
6.63 4.47

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Unconsolidated Financials • 297

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Notes forming part of financial statements (Contd.)

16. Other current financial assets (refer note 31)

As at As at
March 31, 2019 March 31, 2018
In ` Million In ` Million
Fair value of derivatives designated and effective as hedging instruments
Forward contracts receivable 281.27 42.75
Advances to related parties (Unsecured, considered good) (refer note 34
and note 43)
Persistent Systems, Inc. 63.19 67.27
Persistent Systems Pte Ltd. 0.11 0.15
Persistent Systems France SAS 4.14 3.34
Persistent Telecom Solutions Inc. 4.56 -
Persistent Systems Malaysia Sdn. Bhd. 0.08 0.29
Persistent Systems Lanka (Private) Limited 2.41 1.95
Persistent Systems Israel Ltd. 0.38 0.03
Persistent Systems Mexico, S.A. de C.V 0.59 0.40
Akshat Corporation - 0.05
Persistent Systems Germany GmbH 0.57 -
76.03 73.48
Advances to related parties (Unsecured, credit impaired) (refer note 34
and note 43)
Klisma e-Services Private Limited 0.81 0.81
Less: Impairment of current financial assets (0.81) (0.81)
- -
Deposit with financial institutions 250.00 995.35
Add: Interest accrued but not due on deposit with financial institutions 10.97 20.65
Current deposits with financial institutions (Carried at amortised cost) 260.97 1,016.00
Unbilled revenue 1,577.47 715.47
2,195.74 1,847.70

17. Other current assets

As at As at
March 31, 2019 March 31, 2018
In ` Million In ` Million
Advances to suppliers (Unsecured, considered good)
Advances recoverable in cash or kind or for value to be received 286.27 360.47
Other advances (Unsecured, considered good)
VAT receivable (net) 35.07 47.09
Service tax and GST receivable (net) (Refer note 36) 922.10 967.06
957.17 1,014.15
1,243.44 1,374.62

18. Non-current financial liabilities : Borrowings (refer note 31)

As at As at
March 31, 2019 March 31, 2018
In ` Million In ` Million
Unsecured Borrowings carried at amortised cost
Term loans
Indian rupee loan from others 16.55 21.13
Interest accrued but not due on term loans 0.17 0.78
16.72 21.91

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Notes forming part of financial statements (Contd.)

As at As at
March 31, 2019 March 31, 2018
In ` Million In ` Million
Less: Current maturity of long-term borrowings transferred to other current (4.58) (4.58)
financial liabilities (Refer note 21)
Less: Current maturity of interest accrued but not due on term loan transferred to (0.17) (0.78)
other current financial liabilities (Refer note 21)
(4.75) (5.36)
11.97 16.55
The term loans from Government departments have the following terms and conditions:
Loan I - amounting to ` 5.46 million (Previous year: ` 8.19 million) with interest payable @ 2% per annum guaranteed by a bank
guarantee by the Company and repayable in ten equal semi annual installments over a period of five years commencing from
March 2016.
Loan II - amounting to ` 11.09 million (Previous year: ` 12.94 million) with Interest payable @ 3% per annum repayable in ten
equal annual installments over a period of ten years commencing from September 2015.
19. Non current liabilities : Provisions

As at As at
March 31, 2019 March 31, 2018
In ` Million In ` Million
Provision for employee benefits
- Long service awards 158.46 143.37
158.46 143.37
20. Trade payables (refer note 31)

As at As at
March 31, 2019 March 31, 2018
In ` Million In ` Million
Trade payables for goods and services (refer note 41 for details of dues to micro 1,019.07 716.73
and small enterprises)*
1,019.07 716.73
*Includes dues payable to related parties (refer note 34)

21. Other current financial liabilities (refer note 31)

As at As at
March 31, 2019 March 31, 2018
In ` Million In ` Million
Capital creditors (refer note 41 for details of dues to micro and small enterprises) 55.16 32.36
Current maturity of long term-borrowings (Refer note 18) 4.58 4.58
Current maturity of interest on long-term borrowings (Refer note18) 0.17 0.78
Accrued employee liabilities 75.79 71.42
Unpaid dividend * 2.27 1.41
Other liabilities 1.87 0.18
Advance from related parties (Unsecured, considered good) (refer note 34)
Aepona Limited 0.16 0.44
Persistent Telecom Solutions Inc. - 179.69
0.16 180.13
140.00 290.86
* Unpaid dividend is credited to Investor Education and Protection Fund as and when due.

Unconsolidated Financials • 299

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Notes forming part of financial statements (Contd.)

22. Other current liabilities

As at As at
March 31, 2019 March 31, 2018
In ` Million In ` Million
Unearned revenue 130.80 137.56
Advance from customers 347.05 241.10
Other payables
- Statutory liabilities 145.46 181.13
- Other liabilities 6.97 3.04
630.28 562.83
23. Current liabilities: Provisions

As at As at
March 31, 2019 March 31, 2018
In ` Million In ` Million
Provision for employee benefits
- Gratuity (refer note 29) 94.34 (45.92)
- Leave encashment 187.46 157.04
- Long service awards 19.02 22.31
- Other employee benefits 363.29 294.60
664.11 428.03
24. Revenue from operations (net)

For the year ended

March 31, 2019 March 31, 2018
In ` Million In ` Million
Software services (refer note 34) 19,163.68 17,065.63
Software licenses 434.99 261.86
19,598.67 17,327.49
The table below presents disaggregated revenues from contracts with customers by segments, geography and customers’
industry 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, 2019 March 31, 2018
In ` Million In ` Million
Segment wise disclosure
Technology Services 13,539.48 11,973.58
Alliance 5,238.77 4,663.85
Accelerite (Products) 820.42 690.06
Total 19,598.67 17,327.49
Geographical disclosure
India 2,311.63 1,912.40
North America 15,657.14 6,631.39
Rest of the World 1,629.90 8,783.70
Total 19,598.67 17,327.49
Customers' Industry wise disclosure
ISV 8,261.45 8,042.85
Enterprise 9,318.84 7,704.63
IP Led 2,018.38 1,580.01
Total 19,598.67 17,327.49

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Notes forming part of financial statements (Contd.)

Onsite / offshore
IP Led 2,018.38 1,579.93
Offshore 15,663.92 13,307.58
Onsite 1,916.37 2,439.98
Total 19,598.67 17,327.49

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 recognise those revenues,
the Company has applied the practical expedient in Ind AS 115. Accordingly, the Company 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 time and material, outcome based and
event based contracts.
Changes in contract assets (unbilled revenue) are as follows:

Particulars In ` Million
Balance at the beginning of the year 715.47
Revenue recognised during the year 6,946.22
Invoices raised during the year (6,095.12)
Foreign exchange difference 10.90
Balance at the end of the year 1,577.47

Changes in Unearned revenue are as follows:

Particulars In ` Million
Balance at the beginning of the year 137.56
Revenue recognised during the year (493.35)
Increase due to invoicing during the year, not recognised as revenue during the year 478.37
Foreign exchange difference 8.22
Balance at the end of the year 130.80

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 customer business. The amount of
this category of revenue included in the total revenue for the year is ` 192.14 million

25. Other income

For the year ended

March 31, 2019 March 31, 2018
In ` Million In ` Million
Interest income
On financial assets carried at amortised cost (refer note 34) 97.06 47.12
On others 191.76 144.48
Foreign exchange gain (net) - 596.02
Profit on sale of fixed assets (net) 3.77 2.47
Dividend income from investments 392.26 259.73
Profit on sale of investments (net) 366.09 186.84
Net gain/(loss) arising on financial assets designated as at FVTPL (76.95) (18.92)
Advances written back - 17.56
Miscellaneous income 63.91 41.52
1,037.90 1,276.82

Unconsolidated Financials • 301

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Notes forming part of financial statements (Contd.)

26. Personnel expenses

For the year ended

March 31, 2019 March 31, 2018
In ` Million In ` Million
26.1 Employee benefits expense
Salaries, wages and bonus 8,576.55 7,863.97
Contribution to provident fund 328.33 304.60
Gratuity expenses (refer note 29) 150.91 163.94
Defined contribution to other funds 41.31 41.26
Staff welfare and benefits 394.13 364.66
Employee stock compensation expenses - 2.23
9,491.23 8,740.66
26.2 Cost of professionals
- Related parties (Refer note 34) 1,885.21 1,894.75
- Others 310.00 238.28
2,195.21 2,133.03
11,686.44 10,873.69
27. Other expenses

For the year ended

March 31, 2019 March 31, 2018
In ` Million In ` Million
Travelling and conveyance (refer note 34) 338.77 321.25
Electricity expenses (net) 89.96 85.54
Internet link expenses 44.44 46.24
Communication expenses 69.13 75.90
Recruitment expenses 58.51 27.11
Training and seminars 13.66 11.52
Purchase of software licenses and support expenses (refer note 34) 687.86 484.07
Bad debts 23.55 157.62
Provision for doubtful debts/ (provision for doubtful debts written back) (net) (6.99) (146.42)
Rent (refer note 33) 245.51 242.75
Insurance 18.00 18.01
Rates and taxes 55.14 77.78
Legal and professional fees 206.96 207.86
Repairs and maintenance
- Plant and Machinery 101.41 104.73
- Buildings 28.09 26.28
- Others 19.31 20.09
Selling and marketing expenses (Refer note 34) 1,397.65 614.69
Advertisement, conference and sponsorship fees 21.29 14.71
Computer consumables 6.19 5.63
Auditors' remuneration (refer note 38) 13.73 8.07
Donations (refer note 40) 80.43 78.02
Books, memberships, subscriptions 23.06 14.77
Provision for doubtful deposits (refer note 44) 182.50 -
Foreign exchange loss (net) 206.61 -
Directors' sitting fees 5.32 3.90
Directors' commission 14.21 9.74
Miscellaneous expenses 162.72 130.17
4,107.02 2,640.03

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Notes forming part of financial statements (Contd.)

28. Earnings per share

For the year ended

March 31, 2019 March 31, 2018
Numerator for Basic and Diluted EPS
Net Profit after tax (In ` Million) (A) 3,150.08 3,421.17

Denominator for Basic EPS

Weighted average number of equity shares (B) 79,943,943 80,000,000

Denominator for Diluted EPS

Number of equity shares (C) 79,943,943 80,000,000

Basic Earnings per share of face value of ` 10 each (In `) (A/B) 39.40 42.76
Diluted Earnings per share of face value of ` 10 each (In `) (A/C) 39.40 42.76
Number of shares considered as basic weighted average shares outstanding 79,943,943 80,000,000
Add: Effect of dilutive issues of stock options - -
Number of shares considered as weighted average shares and potential 79,943,943 80,000,000
shares outstanding

29. 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. The scheme is funded with an
insurance company in the 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, 2019 March 31, 2018
Current service cost 153.98 167.57
Interest cost on benefit obligation 54.17 50.31
Expected return on plan assets (60.96) (52.40)
Interest income - (1.54)
Others 3.72 -
Net benefit expense 150.91 163.94
Net actuarial (gain) / loss recognized in the year 68.82 (142.97)
Actual return on net plan assets 60.96

Unconsolidated Financials • 303

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Notes forming part of financial statements (Contd.)

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, 2019 March 31, 2018
Opening fair value of plan assets 773.89 711.86
Expected return 60.96 52.40
Adjustment to expected return (4.97) 3.60
Contribution by employer 80.72 72.75
Benefits paid (79.29) (66.72)
Closing fair value of plan assets 831.31 773.89

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, 2019 March 31, 2018
Opening defined benefit obligation 727.97 719.78
Interest cost 54.17 50.31
Current service cost 153.98 167.57
Benefits paid (79.29) (66.72)
Actuarial (gains) / losses on obligation 68.82 (142.97)
Closing defined benefit obligation 925.65 727.97

Benefit asset/ (liability)

(In ` Million)
As at
March 31, 2019 March 31, 2018
Fair value of plan assets 831.31 773.89
(Less) : Defined benefit obligations (925.65) (727.97)
Plan asset / (liability) (94.34) 45.92

The Company expects to contribute the entire deficit to gratuity fund in financial year 2019-20.
The major categories of plan assets as a percentage of the fair value of total plan assets:
As at
March 31, 2019 March 31, 2018
Investments with insurer including accrued interest 100% 100%
The principal assumptions used in determining gratuity for the Company’s plans are shown below:

As at
March 31, 2019 March 31, 2018
Discount rate 7.60% 7.87%
Increment rate 5.50% 5.00%

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.
As at March 31, 2019, every percentage point increase / decrease in discount rate will affect the gratuity benefit obligation by
approximately ` 102.92 million / ` 122.89 million respectively.
As at March 31, 2019, every percentage point increase / decrease in rate of increase in compensation levels will affect the
gratuity benefit obligation by approximately ` 121.39 million / ` 103.23 million respectively.

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Notes forming part of financial statements (Contd.)

Amounts for the current and previous year are as follows:
(In ` Million)
As at
March 31, 2019 March 31, 2018
Plan assets 831.31 773.89
Defined benefit obligation (925.65) (727.97)
Surplus / (Deficit) (94.34) 45.92
Experience adjustments on plan liabilities - Loss / (gain) 68.82 (142.97)

30. 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, 2019 March 31, 2018
(In ` Million) (In ` Million)
Profit before tax 4,383.76 4,552.16
Enacted tax rate in India 34.94% 34.61%
Computed tax expense at enacted tax rate 1,531.86 1,575.41
Effect of exempt income (171.77) (120.26)
Effect of non-deductible expenses 21.77 16.57
Effect of concessions (Tax holidays) (197.52) (234.94)
Effect of concessions (R&D allowance) 21.85 (78.71)
Effect of Short provision of earlier years (Net) 65.00 (3.99)
Effect of diffferent tax rates for different heads of income (30.69) (6.86)
Others (6.82) (16.23)
Income tax expense 1,233.68 1,130.99

Note:
The Company benefits from the tax holidays available for units set up under the Special Economic Zone Act, 2005. These tax
holidays are available for a period of fifteen years from the date of commencement of operation. Under the SEZ Scheme, the
Unit which begins providing services on or after April 1, 2005 will be eligible for deduction of 100% of profits or gains derived
from export of services for the first five years from the financial year in which the unit commenced the provision of services,
50% of such profits or gains for a further period of five years. Upto 50% of such profits and gains is also available for the fur-
ther period of five years subject to creation of a Special Economic Zone re-investment Reserve out of the profit for the eligible
SEZ units and utilization of such reserve by the Company for acquiring new plant and machinery for the purpose of its business
as per the provisions of the Income Tax Act, 1961.

Unconsolidated Financials • 305

 Notes forming part of financial statements (Contd.)
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 Basis of As at March 31, 2019 As at March 31, 2018 Fair value
measurement Carrying value Fair value Carrying value Fair value hierarchy
Assets:
Investments in subsidiaries and associates Cost 3,406.42 3,406.42 2,695.25 2,695.25

306 • Annual Report 2018-19

Investments in other equity instruments Fair value 6.00 6.00 6.00 6.00 Level 3
Investments in bonds* Amortised cost 2,156.68 2,120.86 1,146.11 1,139.71
Investments in mutual funds Fair value 5,270.44 5,270.44 7,573.80 7,573.80 Level 1
Loans Amortised cost 122.64 122.64 950.28 950.28
Deposit with banks and financial institutions Amortised cost 5,262.21 5,262.21 1,928.64 1,928.64
Cash and cash equivalents (including unpaid dividend) Amortised cost 567.39 567.39 306.68 306.68
Trade receivables (net) Amortised cost 2,429.85 2,429.85 3,425.07 3,425.07
Shaping the future of software driven business

Forward contracts receivable Fair value 281.27 281.27 42.75 42.75 Level 2
Unbilled revenue Amortised cost 1,577.47 1,577.47 715.47 715.47
Other current financial assets Amortised cost 76.03 76.03 73.48 73.48
Other non current financial assets (Share application Cost 78.72 78.72 - -
money paid)
Total 21,235.12 21,199.30 18,863.53 18,857.13
Liabilities:
Borrowings (including accrued interest) Amortised cost 16.72 16.72 21.91 21.91
Trade payables and deferred payment liabilities Amortised cost 1,019.07 1,019.07 716.73 716.73
Other financial liabilities (excluding borrowings) Amortised cost 135.25 135.25 285.50 285.50
Total 1,171.04 1,171.04 1,024.14 1,024.14
* Includes interest accrued.
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 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 observable current market transactions in the same instrument nor are they based on available market data.
 Shaping the future of software driven business

Notes forming part of financial statements (Contd.)

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 risk and liquidity risk. The Company’s
focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial
performance. The primary market risk to the Company is foreign exchange risk. The Company uses derivative financial
instruments to mitigate foreign exchange related risk exposures. The use of financial derivatives is governed by the Company’s
policies approved by the Board of Directors which provide written principles on foreign exchange hedging. The Company’s
exposure to credit risk is mainly for receivables that are overdue for more than 90 days. The Credit Task Force is responsible
for credit risk management. Investment of excess liquidity is governed by the Investment policy of the Company. The Company’s
Risk Management Committee monitors risks and policies implemented to mitigate risk exposures.
Market risk
The Company operates globally with its operations spread across various geographies and consequently the Company is
exposed to foreign exchange risk. Around 80% to 90% of the Company’s foreign currency exposure is in USD. The Company
holds plain vanilla forward contracts against expected future sales in USD to mitigate the risk of changes in exchange rates.
The following table analyses unhedged foreign currency risk from financial instruments as of March 31, 2019
(In ` Million)

Other
USD EUR GBP Total
currencies
Trade receivables 408.03 74.82 41.84 56.83 581.52
Cash and cash equivalents and bank balances 130.74 4.71 13.72 30.07 179.24
Investments 2,778.22 856.20 - 117.83 3,752.25
Other financial assets (including loans and interest accrued) 67.75 4.85 3.33 5.39 81.32
Trade and other payables 622.12 0.34 11.74 - 634.20
Other financial liabilities - - 0.16 12.77 12.93

The following table analyses unhedged foreign currency risk from financial instruments as of March 31, 2018:
(In ` Million)

Other
USD EUR GBP Total
currencies
Trade receivables 2,052.57 88.45 47.77 81.48 2,270.27
Cash and cash equivalents and bank balances 161.98 5.30 8.35 27.79 203.42
Investments 2,619.83 123.43 - 117.01 2,860.27
Other financial assets (including loans and interest accrued) 190.51 690.18 - 0.66 881.35
Trade and other payables 337.40 - 1.73 - 339.13
Other financial liabilities 179.69 - - - 179.69

Foreign currency sensitivity analysis

For the year ended March 31, 2019 and March 31, 2018 every percentage point depreciation / appreciation in the exchange rate
between the Indian rupee and foreign currencies would affect the Company’s profit before tax margin (PBT) by approximately
0.46 % and 0.45% respectively.
Derivative financial instruments
The Company 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 similar assets in active
markets or inputs that are directly or indirectly observable in the marketplace. The Company has designated foreign exchange
forward contracts as cash flow hedges to mitigate the risk of foreign exchange exposure on highly probable forecast sales
transactions.

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Notes forming part of financial statements (Contd.)

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

As at March 31, 2019 As at March 31, 2018

Foreign Average ` (million) Foreign Average ` (million)
currency rate currency rate
(million) ` (million) `
Derivatives designated as
cash flow hedges
Forward contracts
USD 112.00 73.00 8,175.45 103.00 66.95 6,895.53

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

As at March 31, 2019 As at March 31, 2018

Foreign Average ` (million) Foreign Average ` (million)
currency rate currency rate
(million) ` (million) `
Not later than 3 months 30.00 69.95 2,098.38 25.00 66.79 1,669.69
Later than 3 months and not 30.00 74.00 2,220.06 24.00 66.72 1,601.25
later than 6 months
Later than 6 months and not 30.00 74.84 2,245.19 25.00 66.93 1,673.26
later than 9 months
Later than 9 months and not 22.00 73.26 1,611.82 29.00 67.29 1,951.33
later than 12 months
Total 112.00 8,175.45 103.00 6,895.53

Credit risk
Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The maximum exposure
to the credit risk at the reporting date is primarily from trade receivables amounting to ` 2,429.85 million and ` 3,425.07 million
as at March 31, 2019 and March 31, 2018, respectively. Trade receivables are typically unsecured and are derived from revenue
earned from customers primarily located in the United States. Credit risk is managed by the Company by Credit Task Force
through credit approvals, establishing credit limits and continuously monitoring the recovery status of customers to which
the Company grants credit terms in the normal course of business. On account of adoption of Ind AS 109, the Company uses
expected credit loss model to assess the impairment loss. The Company uses a provisioning policy approved by the Board of
Directors to compute the expected credit loss allowance for trade receivables. The policy takes into account available external
and internal credit risk factors and the Company’s historical experience for 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:

As at
March 31, 2019 March 31, 2018
Receivables overdue for more than 90 days (` million)* 244.00 410.14
Total receivables (gross) (` million) 2,503.51 3,505.27
Overdue for more than 90 days as a % of total receivables 9.7% 11.7%
* Out of this amount, ` 73.66 million (March 31, 2018: ` 80.20 million) have been provided for.

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Notes forming part of financial statements (Contd.)

Ageing of trade receivables
(In ` Million)

As at
March 31, 2019 March 31, 2018
Within the credit period 2,138.01 2,449.49
1 to 30 days past due 2.34 384.43
31 to 60 days past due 64.57 16.56
61 to 90 days past due 54.59 244.65
91 to 120 days past due 47.35 49.94
121 and above past due 196.65 360.20
Less: Expected credit loss (73.66) (80.20)
Net trade receivables 2,429.85 3,425.07

Movement in expected credit loss allowance

(In ` Million)

As at
March 31, 2019 March 31, 2018
Opening balance 80.20 223.59
Movement in expected credit loss allowance (6.99) (146.42)
Translation differences 0.45 3.03
Closing balance 73.66 80.20

Credit risk on cash and cash equivalents is limited as the Company generally invests in deposits with banks and financial
institutions with high credit ratings. Investments primarily include investment in debts mutual funds, quoted bonds.
Liquidity risk
The Company’s principal sources of liquidity are cash and cash equivalents and the cash flow that is generated from operations.
The Company has no outstanding bank borrowings. The investment of surplus cash is governed by the Company’s investment
policy approved by the Board of Directors. The Company believes that the working capital is sufficient to meet its current
requirements. Accordingly, no liquidity risk is perceived.
As at March 31, 2019, the Company had a working capital of ` 11,884.14 million including cash and cash equivalents and current
fixed deposits of ` 5,408.63 million and current investments of ` 3,295.53 million. As at March 31, 2018, the Company had a
working capital of ` 11,652.07 million including cash and cash equivalents and current fixed deposits of ` 2,046.12 million and
current investments of ` 5,916.31 million.
The table below provides details regarding the contractual maturities of significant financial liabilities:
(In ` Million)
As at
March 31, 2019 March 31, 2018
Less than 1 year More than 1 year Less than 1 year More than 1 year
Borrowings (including accrued interest) 4.75 11.97 5.36 16.55
Trade payables and deferred payment liabilities 1,019.07 - 716.73 -
Other financial liabilities (excluding borrowings) 135.25 - 285.50 -

32. Derivative instruments and un-hedged foreign currency exposures

(i) Forward contracts outstanding at the end of the year:
(In ` Million)
As at As at
March 31, 2019 March 31, 2018
Forward contracts to sell USD: Hedging of expected future receivables of USD 112 8,175.45 6,895.53
Million (Previous year USD 103 Million)

Unconsolidated Financials • 309

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Notes forming part of financial statements (Contd.)

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

As at March 31, 2019 As at March 31, 2018

In ` million Foreign Conversion In ` million Foreign Conversion
currency rate (`) currency rate (`)
(in million) (in million)
Bank balances 0.91 JPY 1.47 0.62 0.75 JPY 1.23 0.62
130.74 USD 1.89 69.11 161.98 USD 2.49 65.17
13.72 GBP 0.15 90.50 8.35 GBP 0.09 92.28
15.71 CAD 0.31 51.51 8.61 CAD 0.17 50.65
4.71 EUR 0.06 77.62 5.30 EUR 0.07 80.80
2.56 AUD 0.05 48.99 7.30 AUD 0.15 50.04
10.89 ZAR 2.28 4.77 11.13 ZAR 2.00 5.57
Investments 2,778.22 USD 40.20 69.11 2,619.83 USD 40.20 65.17
(including share 25.50 SGD 0.50 51.00 24.91 SGD 0.50 49.82
application money paid) 856.20 EUR 11.03 77.62 123.43 EUR 1.53 80.80
92.33 MYR 5.45 16.94 92.10 MYR 5.45 16.90
Trade and other 622.12 USD 9.00 69.11 337.40 USD 5.18 65.17
payables 11.74 GBP 0.13 90.50 1.73 GBP 0.02 92.28
Inter corporate - - - 130.34 USD 2.00 65.17
deposit given - - - 686.84 EUR 8.50 80.80
Interest accrued on - - - 13.35 USD 0.20 65.17
Inter corporate
deposit given
Advances given and 67.75 USD 0.98 69.11 67.32 USD 1.03 65.17
deposits placed 3.33 GBP 0.04 90.50 2.12 GBP 0.02 92.28
4.71 EUR 0.06 77.62 3.34 EUR 0.04 80.80
0.59 MXN 0.17 3.58 0.40 MXN 0.11 3.55
0.09 MYR 0.005 16.94 0.29 MYR 0.02 16.90
1.40 CAD 0.03 51.51 1.28 CAD 0.03 50.65
0.04 JPY 0.064 0.62 0.07 JPY 0.11 0.62
0.38 ILS 0.02 19.05 - - -
0.11 SGD 0.002 51.00 - - -
0.01 ZAR 0.002 4.77 - - -
0.36 AUD 0.007 48.99 - - -
2.41 LKR 6.11 0.39 - - -
Advances received - - - 179.69 USD 2.76 65.17
12.76 CHF 0.18 69.39 - - -
0.16 GBP 0.002 90.50 - - -
Trade receivables 408.03 USD 5.90 69.11 2,052.57 USD 31.50 65.17
74.82 EUR 0.96 77.62 88.45 EUR 1.09 80.80
41.84 GBP 0.46 90.50 47.77 GBP 0.52 92.28
24.95 AUD 0.51 48.99 26.58 AUD 0.53 50.04
- - - 0.94 SEK 0.12 7.86
20.44 ZAR 4.29 4.77 28.75 ZAR 5.17 5.57
10.08 CAD 0.20 51.51 23.67 CAD 0.47 50.65
1.36 CHF 0.02 69.39 1.34 CHF 0.02 68.49
- - - 0.20 MYR 0.01 16.90

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Notes forming part of financial statements (Contd.)

33. Operating leases
The Company has taken equipment and office premises on lease under cancellable operating lease arrangements. Further,
the Company has also taken certain land and office premises under non-cancellable operating lease agreement for a
period of 3 – 15 years. There are no restrictions imposed by the lease agreements. There are no subleases. The Company
has an option to renew the lease agreements at the end of the lease period.
Maximum obligation on long–term non-cancellable operating lease payable as per the rentals stated in respective
agreement and the lease rentals recognized on cancellable and non-cancellable leases is as follows:

(In ` Million)
For the year ended
March 31, 2019 March 31, 2018
Lease rentals during the year
- On cancellable leases 198.69 42.82
- On non-cancellable leases 46.82 199.93
Total 245.51 242.75

(In ` Million)
As at
March 31, 2019 March 31, 2018
Obligation on non- cancellable operating leases
- Not later than one year 46.33 195.46
- Later than one year and not later than five years 17.95 290.66
- Later than five years - 202.04
34. Related party disclosures
(i) Names of related parties and related party relationship

Related parties where control exists

Subsidiaries i. Persistent Systems, Inc.
ii. Persistent Systems Pte Ltd.
iii. Persistent Systems France SAS
iv. Persistent Systems Malaysia Sdn. Bhd.
v. Persistent Systems Germany GmbH
vi. Persistent Telecom Solutions Inc. (wholly owned subsidiary of
Persistent Systems, Inc.)
vii. Akshat Corporation (d.b.a. RGen Solutions)
(wholly owned subsidiary of Persistent Systems, Inc.)
(Dissolved with effect from December 21, 2018)
viii. Aepona Holdings Limited
(wholly owned subsidiary of Persistent Systems, Inc.)
ix. Aepona Group Limited (wholly owned subsidiary of Aepona Holdings
Limited)
x. Aepona Limited (wholly owned subsidiary of Aepona Group Limited)
xi. Valista Limited (wholly owned subsidiary of Aepona Group Limited)
xii. Persistent Systems Lanka (Private) Limited (Formerly known as Aepona
Software (Private) Limited) (wholly owned subsidiary of Valista Limited)
xiii. Persistent Systems Mexico, S.A. de C.V. (wholly owned subsidiary of
Persistent Systems Inc.)
xiv. Persistent Systems Israel Ltd.(wholly owned subsidiary of Persistent
Systems Inc.)
xv. PARX Werk AG (wholly owned subsidiary of Persistent Systems
Germany GmbH)
xvi. PARX Consulting GmbH (wholly owned subsidiary of PARX Werk AG)
xviii. Herald Technologies Inc (wholly owned subsidiary of Persistent
Systems, Inc.)

Unconsolidated Financials • 311

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Notes forming part of financial statements (Contd.)

Related parties with whom transactions have taken place
Associates i. Klisma e-Services Private Limited
Key management personnel i. Dr. Anand Deshpande, Chairman and Managing Director
ii. Mr. Sunil Sapre, Executive Director and Chief Financial Officer
iii. Mr. Amit Atre, Company Secretary
iv. Ms. Roshini Bakshi, Independent Director
v. Mr. Pradeep Bhargava, Independent Director
vi. Mr. Sanjay Bhattacharya, Independent Director
vii. Dr. Anant Jhingran, Independent Director**
viii. Mr. Thomas Kendra, Independent Director
ix. Mr. Prakash Telang, Independent Director
x. Mr. Kiran Umrootkar, Independent Director
xi. Mr. Guy Eiferman, Independent Director@
xii. Dr. Deepak Phatak, Independent Director@
xiii. Mr. Mritunjay Singh*
Relatives of Key management i. Mr. Suresh Deshpande
personnel (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. Dr. Asha Sapre
(Wife of Executive Director and Chief Financial Officer)
Entities over which a key management i. Deazzle Services Private Limited
personnel has significant influence ii. Azure Associates, LLC
iii. Persistent Foundation
(ii) Related party transactions
(In ` Million)
Name of the related party and nature of relationship For the year ended
March 31, 2019 March 31, 2018
Sale of products Subsidiaries
Aepona Limited 22.41 -
Total 22.41
Sale of software services Subsidiaries
Persistent Systems, Inc. 5,521.01 4,199.30
Persistent Systems Malaysia Sdn. Bhd. 113.22 86.78
Persistent Systems Pte Ltd 4.55 9.33
Persistent Systems France SAS 50.41 74.88
Persistent Telecom Solutions Inc. 189.47 231.03
(wholly owned subsidiary of Persistent Systems, Inc.)
Aepona Limited 33.56 61.82
(wholly owned subsidiary of Aepona Group Limited)
PARX Werk AG (wholly owned subsidiary of Persistent 1.96 1.34
Systems Germany GmbH)
PARX Consulting GmbH (wholly owned subsidiary of 22.42 1.82
PARX Werk AG)
Entity over which a key management personnel
has significant influence
Deazzle Services Private Limited 18.46 34.48
Total 5,955.06 4,700.78

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Notes forming part of financial statements (Contd.)

(In ` Million)
Name of the related party and nature of relationship For the year ended
March 31, 2019 March 31, 2018
Legal and professional fees Entity over which a key management personnel
has significant influence
Azure Associates, LLC 23.07 10.68
Total 23.07 10.68
Interest income Subsidiaries
Persistent Systems, Inc. 1.07 17.24
Persistent Systems Germany GmbH 9.53 13.63
Total 10.60 30.87
Dividend Income Subsidiaries
Persistent Systems Pte Ltd 25.58 48.04
Persistent Systems France SAS 85.37 40.44
Persistent Systems Malaysia Sdn. Bhd. 100.55 -
Total 211.50 88.48
Cost of professionals Subsidiaries
Persistent Systems, Inc. 1,408.15 1,595.82
Persistent Systems France SAS 22.65 -
Persistent Systems Malaysia Sdn. Bhd. 85.34 -
Persistent Telecom Solutions Inc. (wholly owned 204.25 186.95
subsidiary of Persistent Systems, Inc.)
Akshat Corporation (d.b.a Rgen Solutions) (wholly - 58.91
owned subsidiary of Persistent Systems, Inc.)
Aepona Limited (wholly owned subsidiary of Aepona 29.51 19.26
Group Limited)
Persistent Systems Lanka (Private) Limited (wholly 74.87 8.87
owned subsidiary of Valista Limited, Ireland)
Persistent Systems Mexico, S.A. de C.V. (wholly owned 43.07 9.46
subsidiary of Persistent Systems, Inc.)
Parx Werk AG (wholly owned subsidiary of Persistent 17.36 -
Systems Germany Gmbh)
Total 1,885.20 1,879.27
Reimbursement of Subsidiary
expenses Persistent Systems, Inc. - 15.48
Total - 15.48
Purchase of Software Subsidiary
Persistent Systems, Inc. 13.75 8.28
Total 13.75 8.28
Selling and marketing Subsidiaries
expenses Persistent Systems, Inc. 1,305.28 604.01
Aepona Limited 2.96 -
Persistent Telecom Solutions Inc. 84.87 -
Total 1,393.11 604.01
Commission received on Subsidiary
corporate guarantee Persistent Systems, Inc. 1.67 1.85
Total 1.67 1.85
Travelling and conveyance Subsidiary
Persistent Systems, Inc. 5.57 2.66
Persistent Systems France SAS 0.76 -
Total 6.33 2.66

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Notes forming part of financial statements (Contd.)

(In ` Million)
Name of the related party and nature of relationship For the year ended
March 31, 2019 March 31, 2018
Remuneration # Key Management Personnel
(Salaries, bonus and Dr. Anand Deshpande 21.79 19.54
contribution to PF)
Mr. Mritunjay Singh (including value of perquisites for 13.95
stock options exercised ` 6.22 million during the year
2017-18)*
Mr. Sunil Sapre (including value of perquisites for 12.47 11.71
stock options exercised ` 0.88 million during the
year 2018-19, ` 1.02 million during the year 2017-18)
Mr. Amit Atre 2.92 2.59
Independent directors:
Ms. Roshini Bakshi 2.20 2.00
Mr. Pradeep Bhargava 2.78 2.68
Mr. Sanjay Bhattacharyya 2.30 2.20
Dr. Anant Jhingran** 1.98 0.65
Mr. Thomas Kendra 2.03 2.10
Mr. Prakash Telang 2.48 2.20
Mr. Kiran Umrootkar 2.80 2.25
Mr. Guy Eiferman@ 1.99 -
Dr. Deepak Phatak@ 1.95 -
Relatives of Key Management Personnel
Mrs. Chitra Buzruk 4.71 3.46
Dr. Mukund Deshpande (including value of perquisites 8.05 4.84
for stock options exercised ` 3.43 million during the
year 2018-19)
Total 70.45 70.17
Dividend paid Key Management Personnel
Dr. Anand Deshpande 251.25 228.15
Mr. Mritunjay Singh - 0.63
Mr. Sunil Sapre 0.05 0.01
Independent directors:
Pradeep Bhargava 0.15 0.14
Sanjay Bhattacharyya 0.15 0.15
Prakash Telang 0.20 0.18
Kiran Umrootkar 0.07 0.06
Relatives of Key Management Personnel
Mr. Suresh Deshpande 0.06 0.63
Mrs. Chitra Buzruk 5.25 4.70
Dr. Mukund Deshpande 4.12 4.00
Mrs. Sonali Anand Deshpande 1.23 1.12
Mrs. Sulabha Suresh Deshpande 6.23 5.66
Total 268.76 245.43

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Notes forming part of financial statements (Contd.)

(In ` Million)
Name of the related party and nature of relationship For the year ended
March 31, 2019 March 31, 2018
Rent paid Key management personnel
Mr. Sunil Sapre 0.16 0.03
Relatives of Key Management Personnel
Dr. Asha Sapre 0.16 0.03
Total 0.32 0.06
Deposit given Key management personnel
Mr. Sunil Sapre - 0.16
Total - 0.16
Intercorporate deposits Subsidiaries
given during the year ## -
Persistent Systems Germany GmbH 617.27
Total - 617.27
Investment in Persistent Subsidiaries
Systems Germany GmbH 78.72
Persistent Systems Germany GmbH -
(Shares pending allotment)
Total 78.72 -
Conversion of loan to Subsidiaries
equity 711.17
Persistent Systems Germany GmbH -
Total 711.17 -
Repayment of Subsidiaries
intercorporate deposits## 132.74
Persistent Systems Inc. 187.90
Total 132.74 187.90
Donation given Entity over which a key management personnel
has significant influence
Persistent Foundation 70.51 66.61
70.51 66.61
* Mr. Mritunjay Singh resigned as executive director w.e.f. November 24, 2017.
** Dr. Anant Jhingran resigned on November 3, 2016 and re-appointed as an Independent director on November 21, 2017.
‘@ Dr. Deepak Phatak and Mr. Guy Eiferman have been appointed as additional directors (independent member ) on the board
of Persistent Systems Limited w.e.f. April 24, 2018.
# The remuneration to the key managerial personnel does not include 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.
## These transactions are disclosed at the exchange rates prevailing on the date of transaction.

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Notes forming part of financial statements (Contd.)

(iii) Outstanding balances
(In ` Million)
Name of the related party and nature of relationship As at
March 31, 2019 March 31, 2018
Loans and advances given Subsidiaries
Persistent Systems, Inc. 63.19 67.27
Persistent Systems Pte Ltd 0.11 0.15
Persistent Systems France SAS 4.14 3.34
Persistent Telecom Solutions Inc. 4.56 -
Persistent Systems Israel Ltd. 0.38 0.03
Akshat Corporation (d.b.a Rgen Solutions) - 0.05
Aepona Limited - -
Persistent Systems Lanka (Private) Limited 2.41 1.95
Persistent Systems Malaysia Sdn. Bhd 0.08 0.29
Persistent Systems México, S.A. de C.V. 0.59 0.40
Persistent Systems Germany GmbH 0.57 -
Associate
Klisma e-Services Private Limited @ 0.81 0.81
Total 76.84 74.29
Advances received Subsidiaries
Persistent Telecom Solutions Inc. - 179.69
Aepona Limited 0.16 0.44
Total 0.16 180.13
Trade payables Subsidiaries
Persistent Systems France SAS 5.52 0.01
Persistent Systems, Inc. 409.23 286.94
Persistent Systems Malaysia Sdn. Bhd. 24.57 -
Persistent Telecom Solutions Inc. (wholly owned 97.21 20.67
subsidiary of Persistent Systems, Inc.)
Aepona Limited (wholly owned subsidiary of Aepona 6.40 -
Group Limited)
Akshat Corporation (d.b.a Rgen Solutions) (wholly - 5.72
owned subsidiary of Persistent Systems, Inc.)
Persistent Systems Lanka (Private) Limited 26.91 2.35
Persistent Systems Mexico, S.A. de C.V. 12.44 3.58
PARX Werk AG 0.24 -
Entity over which a key management personnel
has significant influence
Azure Associates, LLC 2.83 0.20
Total 585.35 319.47
Trade receivables Subsidiaries
Persistent Systems France SAS 3.89 8.85
Persistent Systems, Inc. 285.30 877.07
Persistent Telecom Solutions Inc. 11.10 259.88
Persistent Systems Malaysia Sdn. Bhd. 16.99 38.81
Persistent Systems Pte Ltd - 9.33
Akshat Corporation (d.b.a Rgen Solutions) - 0.05
Aepona Limited - 25.07
PARX Werk AG - 1.34
PARX Consulting GmbH 6.33 1.82
Entity over which a key management personnel
has significant influence
Deazzle Services Private Limited 2.14 3.45
Total 325.75 1,225.67

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Notes forming part of financial statements (Contd.)

(In ` Million)
Name of the related party and nature of relationship As at
March 31, 2019 March 31, 2018
Loans given Subsidiary
Persistent Systems, Inc. - 130.34
Persistent Systems Germany GmbH - 686.84
Associate
Klisma e-Services Private Limited @ 27.43 27.43
Total 27.43 844.61
Interest accrued on loan Subsidiary
given Persistent Systems, Inc. - 13.35
Total - 13.35
Investments Subsidiaries
Persistent Systems, Inc. 2,478.01 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 713.19 2.02
Associates
Klisma e-Services Private Limited @ 0.05 0.05
Total 3,406.47 2,695.30
Investment in Persistent Subsidiaries
Systems Germany GmbH Persistent Systems Germany GmbH 78.72 -
(Shares pending allotment) Total 78.72 -

@ These balances are fully provided for.

(iv) Guarantee given on behalf of subsidiary
Persistent Systems Ltd has given a guarantee of $ 15.17 million (Previous year: $ 15.17 million) on behalf of Persistent

Systems Inc.

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 Date of adoption Initial Grant date Exercise period
granted # by the Board/
Members
Scheme I 4,560,500 Dec 11, 1999 Dec 11, 1999 *
Scheme II 753,200 Apr 23, 2004 Apr 23, 2004 10 Years
Scheme III 2,533,300 Apr 23, 2004 Apr 23, 2004 *
Scheme IV 6,958,250 Apr 23, 2006 Apr 23, 2006 10 Years
Scheme V 1,890,525 Apr 23, 2006 Apr 23, 2006 *
Scheme VI 1,216,250 Oct 31, 2006 Oct 31, 2006 10 Years
Scheme VII 1,784,975 Apr 30, 2007 Apr 30, 2007 10 Years
Scheme VIII 42,000 Jul 24, 2007 Jul 24, 2007 3 Years
Scheme IX 1,374,462 Jun 29, 2009 Jun 29, 2009 10 Years
Scheme X 3,062,272 Jun 10, 2010 Oct 29, 2010 3 Years
Scheme XI ** 492,000 Jul 26, 2014 Nov 03, 2014 1 Year
Scheme XII *** 67,300 Feb 04, 2016 Apr 08, 2016 2.5 Months

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Notes forming part of financial statements (Contd.)

# 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 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 granted under this
scheme are 50.
The vesting period and conditions of the above ESOP schemes is as follows:
All the above ESOP schemes have service condition, 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:
(i) Scheme I to V, VII, VIII and X:

Service period from the date of grant % of Options vesting

Scheme I to V & X Scheme VII Scheme VIII
12 Months 10% 20% 25%
24 Months 30% 40% 50%
36 Months 60% 60% 75%
48 Months 100% 80% 100%
60 Months NA 100% 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 date of grant % of Options vesting

3 years Based on credit points earned
(v) Scheme XII:

Service period from the date of grant % of Options vesting

1 year 100%
b) Details of activity of the ESOP schemes
Movement for the year ended March 31, 2019 and March 31, 2018:

ESOP Particulars Year Ended Outstanding at Granted Forfeited Exercised Outstanding Exercisable at
Scheme the beginning of during the during the during the at the end of the end of the
the Year Year Year Year the Year Year
Scheme I Number of Options March 31, 2019 20 - - 2 18 18
Weighted Average March 31, 2019 4.19 - 4.19 4.22 4.42 4.42
Price
Number of Options March 31, 2018 6,583 - 6,559 4 20 20
Weighted Average March 31, 2018 5.51 - 5.51 5.56 4.19 4.19
Price

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Notes forming part of financial statements (Contd.)

ESOP Particulars Year Ended Outstanding at Granted Forfeited Exercised Outstanding Exercisable at
Scheme the beginning of during the during the during the at the end of the end of the
the Year Year Year Year the Year Year
Scheme II Number of Options March 31, 2019 103 - - 100 3 3
Weighted Average March 31, 2019 47.51 - - 48.21 24.18 24.18
Price
Number of Options March 31, 2018 4,603 - - 4,500 103 103
Weighted Average March 31, 2018 48.20 - - 48.21 47.51 47.51
Price
Scheme III Number of Options March 31, 2019 203,392 - 11,288 33,479 158,625 158,625
Weighted Average March 31, 2019 31.36 - 25.75 30.74 31.89 31.89
Price
Number of Options March 31, 2018 238,827 - 6,382 29,053 203,392 203,392
Weighted Average March 31, 2018 31.02 - 14.82 32.20 31.36 31.36
Price
Scheme IV Number of Options March 31, 2019 708,946 - 17,542 191,631 499,773 499,773
Weighted Average March 31, 2019 52.34 - 24.79 54.78 52.37 52.37
Price
Number of Options March 31, 2018 827,944 - 4,023 114,975 708,946 708,946
Weighted Average March 31, 2018 51.48 - 24.65 47.12 52.34 52.34
Price
Scheme V Number of Options March 31, 2019 96,856 - 10,952 23,111 62,793 62,793
Weighted Average March 31, 2019 26.33 - 24.13 24.55 27.37 27.37
Price
Number of Options March 31, 2018 116,446 - 9,225 10,365 96,856 96,856
Weighted Average March 31, 2018 26.29 - 23.47 28.43 26.33 26.33
Price
Scheme VI Number of Options March 31, 2019 - - - - - -
Weighted Average March 31, 2019 - - - - - -
Price
Number of Options March 31, 2018 - - - - - -
Weighted Average March 31, 2018 - - - - - -
Price
Scheme VII Number of Options March 31, 2019 37,996 - - 3,000 34,996 34,996
Weighted Average March 31, 2019 35.73 - - 61.12 33.55 33.55
Price
Number of Options March 31, 2018 55,887 - 4,000 13,891 37,996 37,996
Weighted Average March 31, 2018 36.26 - 30.55 30.55 35.73 35.73
Price
Scheme VIII Number of Options March 31, 2019 - - - - - -
Weighted Average March 31, 2019 - - - - - -
Price
Number of Options March 31, 2018 - - - - - -
Weighted Average March 31, 2018 - - - - - -
Price
Scheme IX Number of Options March 31, 2019 150,552 - - 8,432 142,120 142,120
Weighted Average March 31, 2019 54.74 - - 54.74 54.74 54.74
Price
Number of Options March 31, 2018 163,777 - 3,000 10,225 150,552 150,552
Weighted Average March 31, 2018 54.74 - 54.74 54.74 54.74 54.74
Price

Unconsolidated Financials • 319

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Notes forming part of financial statements (Contd.)

ESOP Particulars Year Ended Outstanding at Granted Forfeited Exercised Outstanding Exercisable at
Scheme the beginning of during the during the during the at the end of the end of the
the Year Year Year Year the Year Year
Scheme X Number of Options March 31, 2019 461,351 - 31,124 274,577 155,650 155,650
Weighted Average March 31, 2019 201.74 - 204.64 204.64 206.73 206.73
Price
Number of Options March 31, 2018 988,647 - 258,392 268,904 461,351 461,351
Weighted Average March 31, 2018 204.22 - 209.07 209.07 201.74 201.74
Price
Scheme XI Number of Options March 31, 2019 36,000 - 9,600 26,400 - -
Weighted Average March 31, 2019 5.00 - 5.00 5.00 - -
Price
Number of Options March 31, 2018 402,600 - 323,400 43,200 36,000 36,000
Weighted Average March 31, 2018 10.00 - 10.00 10.00 10.00 10.00
Price
Scheme XII Number of Options March 31, 2019 - - - - - -
Weighted Average March 31, 2019 - - - - - -
Price
Number of Options March 31, 2018 67,300 - 14,850 52,450 - -
Weighted Average March 31, 2018 10.00 - 10.00 10.00 - -
Price
Total Number of Options March 31, 2019 1,695,216 - 80,506 560,732 1,053,978 1,053,978
Number of Options March 31, 2018 2,872,614 - 629,831 547,567 1,695,216 1,695,216

The weighted average share price for the period over which stock options were exercised was ` 697.09 (previous year ` 690.36)

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

Scheme Range of As at March 31, 2019 As at March 31, 2018

exercise price No. of Options Weighted average No. of Options Weighted average
outstanding remaining outstanding remaining
contractual life contractual life
(in years) (in years)
Scheme I 2.04 – 9.57 18 Note (i) 20 Note (i)
Scheme II 12.96 – 48.21 3 2.40 103 3.40
Scheme III 12.96 – 48.21 158,625 Note (i) 203,392 Note (i)
Scheme IV 22.23 – 61.12 499,773 3.93 708,946 4.92
Scheme V 22.23 – 44.14 62,793 Note (i) 96,856 Note (i)
Scheme VI 22.23 – 30.67 - - - -
Scheme VII 24.17 – 61.12 34,996 3.37 37,996 4.56
Scheme VIII 48.21 – 48.21 - - - -
Scheme IX 54.74 – 54.74 142,120 4.03 150,552 5.03
Scheme X 157.58 – 279.70 155,650 1.85 461,351 0.67
Scheme XI 10.00 - - 36,000 0.25
Scheme XII 10.00 - - - -
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,
2019 amounted to Nil (Previous year ` 2.23 million). The liability for employee stock options outstanding as at March 31,
2019 is ` 76.29 million (Previous year ` 90.52 million).

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Notes forming part of financial statements (Contd.)

36. Contingent liabilities
Persistent Systems Limited (“the Company”) had received a show cause notice from the Commissioner of Service Tax on
December 19, 2016 for non-payment of service tax of ` 452.15 million under import of services on reverse charge basis,
excluding interest and penalty, if applicable. The issue relates to the professional and technical services rendered by
overseas subsidiaries on behalf of the Company to its overseas customers for the period 2011-12 to 2014-15.
Post representations made by the Company, the Learned Principal Commissioner of Service Tax, Pune, adjudicated the
aforesaid show-cause notice and issued an order on May 29, 2017, reducing the demand to ` 165.51 million based on the
period of limitation and as a result of that, the said demand now covers financial year 2014-15. The Company has filed an
appeal against the order passed by Learned Principal Commissioner of Service Tax, Pune with the Hon’ble Central Excise
and Service Tax Appellate Tribunal (CESTAT) on September 23, 2017.
The Company, based on independent legal opinion obtained in respect of issues related to this matter, believes that the
liability is not likely to arise and therefore, no provision is considered necessary in the financial statements. 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.
The GST department has filed an appeal on October 11, 2017 with appellate authorities against the Order passed by
Learned Principal Commissioner of Service Tax, Pune. Though the GST department has acknowledged the ground of
revenue neutrality, the said appeal mainly questions non-application of extended period of limitation. The Company has
filed reply to this appeal on December 18, 2017.
Considering the view of the Service Tax Authorities, based on legal advice, and due prudence, the Company has deposited,
an amount of ` 647.36 million towards service tax in respect of the above matter, for the period from April 01, 2014 to
June 30, 2017, under protest.
As on March 31, 2019, the pending litigations in respect of direct taxes amount to ` 268.74 million and in respect of indirect
taxes amount to ` 30.40 million (excluding the show cause received from Commissioner of Service Tax on May 29, 2017 of
` 173.78 million under import of services on reverse charge basis as mentioned above). Based on the advice obtained and
judgments in favour of the Company at the first appellate authority in the earlier years, management does not expect any
outflow in respect of these litigations.
Persistent Systems Ltd has given a guarantee of $ 15.17 million on behalf of Persistent Systems Inc. (Previous year: $ 15.17
million).
37. Capital and other commitments
(In ` Million)
As at
March 31, 2019 March 31, 2018
Capital commitments
Estimated amount of contracts remaining to be executed on capital account and not 204.45 40.44
provided for
Other commitments
Forward contracts 8,175.45 6,895.53
For commitments relating to lease agreements, please refer note 33.
38. Auditors’ remuneration
(In ` Million)
For the year ended
March 31, 2019 March 31, 2018
As auditor:
- Audit fee 8.20 7.00
- Tax audit fee - -
In other capacity:
- Other services 5.53 1.07
Reimbursement of expenses - -
13.73 8.07

Unconsolidated Financials • 321

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Notes forming part of financial statements (Contd.)

39. Research and development expenditure
The particulars of expenditure incurred on in-house research and development are as follows:
(In ` Million)
For the year ended
March 31, 2019 March 31, 2018
Capital 0.46 -
Revenue 182.35 281.99
182.81 281.99
40. The Company was required to spend an amount of ` 79.08 million during the financial year 2018-19 (Previous year ` 73.80
million) on Corporate Social Responsibility in accordance with section 135(5) of the Companies Act, 2013. The Company
has spent ` 80.36 million (` 1.40 million in kind) during the financial year 2018-19 (Previous year ` 74.46 million) on pur-
poses other than construction / acquisition of any asset.
41. 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 (MSMED Act, 2006).
42. Net dividend remitted in foreign exchange
(In USD million)
Particulars Period to which No. of No. of equity For the year ended
dividend relates non-resident shares held on
shareholders which dividend
March 31, 2019 March 31, 2018
was due
(in million)
Final dividend 2016-17 1 0.002 - 0.0001
Final dividend 2017-18 3 0.37 0.02 -
Interim dividend 2017-18 2 0.0068 - 0.00074
Interim dividend 2018-19 3 0.37 0.0001 -

43. Loans and advances in the nature of loans given to subsidiaries and associates and firms / companies in which
directors are interested
a) Loan to Persistent Systems, Inc.
• Balance as at March 31, 2019: Nil (Previous year: ` 130.34 million)
• Maximum amount outstanding during the year ` 139.97 million (Previous year: ` 329.23 million)
• Loan is granted for a period of 3 years @ US Prime Rate + 125 Bps. This amount has been utilized for meeting working
capital requirements.
b) Loan to Persistent Systems Germany GmbH
• Balance as at March 31, 2019: Nil (Previous year: ` 686.84 million)
• Maximum amount outstanding during the year ` 728.64 million (Previous year: ` 686.84 million)
• Loan is granted for a period of 3 years @ EURIBOR + 300 Bps. This amount has been utilized for meeting working capital
requirements and to fund its acquisition opportunities.
c) Advance to Persistent Systems, Inc.
• Balance as at March 31, 2019 ` 63.19 million (Previous year: ` 67.27 million).
• Maximum amount outstanding during the year ` 67.27 million (Previous year: ` 67.27million).
• There is no repayment schedule in respect of this advance. It is repayable on demand. This amount is utilized for meeting
business requirements.
d) Advance to Persistent Systems Pte. Ltd.
• Balance as at March 31, 2019 ` 0.11 million (Previous year: 0.15 million)
• Maximum amount outstanding during the year ` 0.25 million (Previous year: ` 0.15 million)
• There is no repayment schedule in respect of this advance. It is repayable on demand. This amount is utilized for meeting
business requirements

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Notes forming part of financial statements (Contd.)

e) Advance to Persistent Systems Malaysia Sdn. Bhd.
• Balance as at March 31, 2019 ` 0.08 million (Previous year: ` 0.29 million)
• Maximum amount outstanding during the year ` 0.38 million (Previous year: 0.30 million)
• There is no repayment schedule in respect of this advance. It is repayable on demand. This amount is utilized for meeting
business requirements.
f) Advance to Persistent Systems France SAS
• Balance as at March 31, 2019 ` 4.14 million (Previous year: ` 3.34 million)
• Maximum amount outstanding during the year ` 4.15 million (Previous year: ` 3.34 million)
• There is no repayment schedule in respect of this advance. It is repayable on demand. This amount is utilized for meeting
business requirements.
g) Loan to Klisma e-Services Private Limited
• Balance as at March 31, 2019 ` 27.43 million (Previous year: ` 27.43 million)
• Maximum amount outstanding during the year ` 27.43 million (Previous year: ` 27.43 million)
• Principal is receivable at the end of twelve months and interest is receivable quarterly @ 12 % p.a. This amount is utilized
for meeting business requirements. The outstanding balance has been fully provided for.
h) Advance to Klisma e-Services Private Limited
• Balance as at March 31, 2019 ` 0.81 million (Previous year: ` 0.81 million)
• Maximum amount outstanding during the year ` 0.81 million (Previous year: ` 0.81 million)
• There is no repayment schedule in respect of this advance. It is repayable on demand. This amount is utilized for meeting
business requirements. The outstanding balance has been fully provided for.
i) Advance to Aepona Limited
• Balance as at March 31, 2019: Nil (Previous year: Nil)
• Maximum amount outstanding during the year: Nil (Previous year: ` 11.49 million)
• There is no repayment schedule in respect of this advance. It is repayable on demand. This amount is utilized for meeting
business requirements.
j) Persistent Systems (Lanka) Private Limited
• Balance as at March 31, 2019 ` 2.41 million (Previous year: ` 1.95 million)
• Maximum amount outstanding during the year ` 2.41 million (Previous year: ` 1.95 million)
• There is no repayment schedule in respect of this advance. It is repayable on demand. This amount is utilized for meeting
business requirements.
k) Advance to Persistent Systems Mexico, S.A. de C.V
• Balance as at March 31, 2019 ` 0.59 million (Previous year: ` 0.40 million)
• Maximum amount outstanding during the year ` 0.59 million (Previous year: ` 1.92 million)
• There is no repayment schedule in respect of this advance. It is repayable on demand. This amount is utilized for meeting
business requirements.
l) Advance to Akshat Corporation (d.b.a. RGen Solutions)
• Balance as at March 31, 2019: Nil (Previous year: ` 0.05 million)
• Maximum amount outstanding during the year ` 0.10 million (Previous year: ` 0.13 million)
• There is no repayment schedule in respect of this advance. It is repayable on demand. This amount is utilized for meeting
business requirements.
m) Advance to Persistent Systems Germany GmbH
• Balance as at March 31, 2019: ` 0.57 million (Previous year: Nil)
• Maximum amount outstanding during the year ` 0.74 million (Previous year: ` 1.54 million)
• There is no repayment schedule in respect of this advance. It is repayable on demand. This amount is utilized for meeting
business requirements.
n) Advance to Persistent Systems Israel Limited
• Balance as at March 31, 2019 ` 0.38 million (Previous year: ` 0.03 million)
• Maximum amount outstanding during the year ` 0.40 million (Previous year: ` 0.11 million)
• There is no repayment schedule in respect of this advance. It is repayable on demand. This amount is utilized for meeting
business requirements.

Unconsolidated Financials • 323

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Notes forming part of financial statements (Contd.)

o) Advance to Persistent Telecom Solutions Inc
• Balance as at March 31, 2019 ` 4.56 million (Previous year: Nil)
• Maximum amount outstanding during the year ` 4.56 million (Previous year: Nil)
• There is no repayment schedule in respect of this advance. It is repayable on demand. This amount is utilized for meeting
business requirements.
p) Advance to Valista Limited Ireland
• Balance as at March 31, 2019: Nil (Previous year: Nil)
• Maximum amount outstanding during the year ` 0.03 million (Previous year: Nil)
• There is no repayment schedule in respect of this advance. It is repayable on demand. This amount is utilized for meeting
business requirements.
44. As reported in the previous quarters, the Company has deposits of ` 430 million with the financial institutions viz.
Infrastructure Leasing & Financial Services Ltd. (IL&FS) and IL&FS Financial Services Ltd. (referred to as “IL&FS Group”) as
on the balance sheet date. These are due for maturity from January 2019 to June 2019, of which ` 345 million are overdue
as on March 31, 2019.The Company has not accrued any interest on these deposits since April 1, 2018. The amount due till
March 31, 2019 and interest due have not been received as on date. In view of the uncertainty prevailing with respect to
recovery of outstanding balances from IL&FS Group, Management of the Company has provided an amount of ` 182.50
million for impairment in value of deposits as of March 31, 2019. The provision currently reflects the exposure that may
arise given the uncertainty. With the resolution plan in progress, 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.
45. The financial statements are presented in ` million and decimal thereof except for per share information or as otherwise
stated.

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324 • Annual Report 2018-19

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NOTES

Unconsolidated Financials • 325

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NOTES

326 • Annual Report 2018-19

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Concept & Design: www.chittlesoftsolutions.com

Persistent Systems Limited

CIN: L72300PN1990PLC056696

Regd. Office: Bhageerath, 402 Senapati Bapat Road, Pune 411 016, India
Tel: +91 (20) 6703 0000 Fax: +91 (20) 6703 0009 Email: [email protected]

www.persistent.com

/PersistentSystems @Persistentsys #PersistentAR2019 /persistent-systems

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