Persistent Systems

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• Annual Report 2018-19

Shaping the future of software driven business

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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.