Persistent Systems

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• Annual Report 2018-19

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;

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.

Added Tax which have not been deposited as on 31 March 2019 on account of disputes are given below:

In Mn.

Name of Statute

/ Nature of Dues

Forum where Dispute is Pending

Period to

which the

Amount

Relates

Amt.

involved

Amt.

unpaid

The Income Tax

Act, 1961

Honourable High Court of Judicature At Bombay

FY 2005-06

to 2007-08

38.08

Nil

Honourable High Court of Judicature At Bombay

FY 2009-10

20.84

Nil

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

Added Tax Act,

2002 / Sales Tax

Joint Commissioner (Appeals) – VAT

FY 2005-06 to

2013-14

26.51

3.07