Report of the Directors

A. Financial Section

Financial Results

The highlights of the financial performance on a consolidated basis for the year ended March 31, 2021 are as under:
(Amount in (Amount in % Change
USD million except ₹ million except (based on
EPS and Book Value) EPS and Book Value) amounts in ₹)
Particulars 2020-21 2019-20 2020-21 2019-20
Revenue from Operations 566.08 501.61 41,878.88 35,658.08 17.45%
Earnings before interest, depreciation, 92.32 69.34 6,830.15 4,929.54 38.56%
amortization and taxes
Finance Cost* 0.78 0.89 57.94 63.32 (8.50%)
Depreciation and amortization 23.73 23.35 1,755.50 1,659.62 5.78%
Other income 14.57 18.53 1,077.72 1,316.82 (18.16%)
Tax expense 21.46 15.76 1,587.66 1,120.53 41.69%
Net profit 60.92 47.87 4,506.77 3,402.89 32.44%
Transfer to general reserve 27.31 22.94 2,020.34 1,630.89 23.88%
Net worth** 381.61 314.56 27,899.35 23,799.84 17.22%
Earnings per share (EPS) (Basic) 0.80 0.62 58.97 44.38 32.88%
Earnings per share (EPS) (Diluted) 0.80 0.62 58.97 44.38 32.88%
Book value per equity share 4.99 4.12 365.06 311.41 17.22%
Market value per equity share as on March 31
BSE Limited - - 1,918.75 551.00 248.23
National Stock Exchange of India Limited - - 1,922.05 550.95 248.86

[Conversion Rate USD 1 = ₹ 73.98 for Profit and Loss items; USD 1 = ₹ 73.11 for Balance Sheet items (Financial Year 2020-21)
and USD 1 = ₹ 71.09 for Profit and Loss items; USD 1 = ₹ 75.66 for Balance Sheet items (Financial Year 2019-20)]

*Includes notional interest on lease liability ₹ 57.53 million recognized in accordance with IND AS – 116 on Leases for the year
ended March 31, 2021. (Financial Year 2019-20: ₹ 61.22 million)
**Net worth = Equity Share Capital + Reserves and Surplus (excluding Gain on bargain purchase) + Other Comprehensive Income

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 Report of the Directors

The highlights of the financial performance on an unconsolidated basis for the year ended March 31, 2021 are as under:

(Amount in (Amount in % Change

USD million except ₹ million except (based on
EPS and Book Value) EPS and Book Value) amounts in ₹)
Particulars 2020-21 2019-20 2020-21 2019-20
Revenue from Operations 335.17 296.54 24,796.08 21,081.22 17.62%
Earnings before interest, depreciation, 82.58 60.90 6,109.04 4,329.65 41.10%
amortization and taxes
Finance Cost* 0.52 0.63 38.21 44.51 (14.15%)
Depreciation and amortization 7.66 7.81 566.79 555.12 2.10%
Other income 15.90 22.49 1,176.16 1,599.04 (26.45%)
Tax expense 22.02 17.61 1,629.34 1,251.83 30.16%
Net profit 68.27 57.35 5,050.86 4,077.23 23.88%
Transfer to general reserve 27.31 22.94 2,020.34 1,630.89 23.88%
Net worth** 378.27 303.80 27,655.24 22,985.38 20.32%
Earnings per share (EPS) (Basic) 0.89 0.75 66.09 53.17 24.30%
Earnings per share (EPS) (Diluted) 0.89 0.75 66.09 53.17 24.30%
Book value per equity share 4.95 3.98 361.86 300.76 20.32%
Market value per equity share as on March 31
BSE Limited - - 1,918.75 551.00 248.23
National Stock Exchange of India Limited - - 1,922.05 550.95 248.86

[Conversion Rate USD 1 = ₹ 73.98 for Profit and Loss items; USD 1 = ₹ 73.11 for Balance Sheet items (Financial Year 2020-21)
and USD 1 = ₹ 71.09 for Profit and Loss items; USD 1 = ₹ 75.66 for Balance Sheet items (Financial Year 2019-20)]

*Includes notional interest on lease liability ₹ 38.09 million recognised in accordance with IND AS – 116 on Leases for the year
ended March 31, 2021. (Financial Year 2019-20: ₹ 43.86 million)
**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 2020-21 and the date of this report.

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

As per Section 134 of the Companies Act, 2013 (the ‘Act’), your Company has provided the Consolidated financial statements
as on March 31, 2021. Your Directors believe that the consolidated financial statements present a more comprehensive picture
as compared to standalone financial statements. These documents are available for inspection during the business hours at
the Registered Office of your Company and the respective subsidiary companies. A statement showing financial highlights of
the subsidiary companies is enclosed to the consolidated financial statements.

The Annual Report of your Company does not contain full financial statements of the subsidiary companies, however, your
Company will make available the audited annual accounts and related information of the subsidiary companies in soft copy in
line with the Ministry of Corporate Affair (MCA) Circular dated May 5, 2020 and its extentions from time to time upon request
by any Member of your Company.

Consolidated financial statements

Consolidated financial statements of your Company and its subsidiaries as at March 31, 2021 are prepared in accordance with
the Indian Accounting Standard (Ind AS) 110 on ‘Consolidated Financial Statements’ notified by the MCA and forms part of
this Annual Report.

Persistent Systems Limited — 31st Annual Report 2020-21. All Rights Reserved © 2021. 66