1.

INTRODUCTION OF COMPANY

Tab1.1: Companys Logo

1.1 INTRODUCTION
Persistent Systems is a technical term referring to the persistence of data on disks as compared to data
that is transient or not persistent when in the main memory and goes away when you shut the
themselves from their peers. Persistent Systems was incorporated as Persistent Systems Private
Limited on May 30, 1990. It was subsequently converted into a public Limited company on September
17, 2007 with the name Persistent Systems Limited and a new certificate of incorporation was issued
on September 28, 2007 from the RoC.
Shares in the company were listed on the National Stock Exchange of India in March 2010.[2]. The
operations of Nagpur-based Info spectrum India Private, an outsourced private development of US
company Info spectrum, were taken over by Persistent in February 2011.

Legacy in data management

Persistent began the journey in 1990, twenty-five years back, by building software for database
product companies. From indexing, query processing and database internals, they evolved to building

software for products that had strong data infrastructure requirements. In 2003, they defined a distinct
category for Outsourced Product Development (OPD) establishing leadership in the category.

SUBSIDIARIES
Subsidiaries in India:
Persistent eBusiness Solutions Limited Persistent eBusiness Solutions Limited was incorporated on
May 17, 2000 in the State of Maharashtra and is currently engaged in the business of providing
software development, consultancy and system integration services to clients in India. The authorised
share capital of Persistent eBusiness Solutions Limited is Rs. 20,000,000 divided into 2,000,000 equity
shares of Rs.10 each and the issued and paid up share capital of Persistent eBusiness Solutions Limited
is Rs. 9,203,000 divided into 920,300 equity shares of Rs. 10 each. The Company holds 920,000
equity shares of Persistent eBusiness Solutions Limited aggregating 99.97% of the issued and paid up
share capital of Persistent eBusiness Solutions Limited and the remaining equity shares of Persistent
eBusiness Solutions Limited are held by the Promoter, Dr. Anand Deshpande jointly with other
individuals, as nominees of the Company, with the beneficial interest in the same being with the
Company.
Persistent Systems and Solutions Limited Persistent Systems and Solutions Limited was
incorporated on May 22, 2008 in the State of Maharashtra and is currently engaged in the business of
providing software development services through a unit in a SEZ. The authorised share capital of
Persistent Systems and Solutions Limited is Rs.100,000,000 divided into 10,000,000 shares of Rs.10
each and the issued and paid up share capital of Persistent Systems Solutions Limited is Rs.
14,500,000 divided into 1,450,000 equity shares of Rs. 10 each. The Company holds 1,449,940 equity
shares in Persistent Systems and Solution
Subsidiary in USA
Persistent Systems, Inc. Persistent Systems, Inc. was incorporated under the laws of the State of
California on October 18, 2001 and is currently engaged in the business of providing software
development, consultancy and system integration services to clients in the United States and other
countries. The authorised share capital of Persistent Systems, Inc. is US$4,100,000 divided into
41,000,000 common stock of US$ 0.10 each and the issued and paid up share capital of Persistent
Systems, Inc. is US$3,700,000 divided into 37,000,000 common stock of US$ 0.10 each, all of which
are held by the Company.
Subsidiary in Singapore
Persistent Systems Pte. Ltd. Persistent Systems Pte. Ltd. was incorporated on April 19, 2007 in
Singapore and is currently engaged in the buiness of providing software development, consultancy and
system integration services to clients in the south east Asian region. The issued and paid up share
capital of Persistent Systems Pte. Ltd. is Sing $500,000 divided into 500,000 equity shares of Sing $1
each, all of which are held by the Company.

1.2 COMPANYS PROFILE

Type

Public

Traded as

BSE: 533179
NSE: PERSISTENT

Industry

Computer Services

Founded

1990

Headquarters

Pune, India

Revenue

19.85billion(US$300 million) (2015)

Number of
employees

8,000+

Website

www.persistent.com

Tab1.2: Companys profile

1.3 HISTORY OF COMPANY

The company was incorporated as Persistent Systems Private Limited on May 30, 1990. The Company
was subsequently converted into a public limited company on September 17, 2007 with the name
Persistent Systems Limited and a new certificate of incorporation was issued on September 28, 2007
from the RoC.
It is an OPD specialty company, offering the customers the benefits of offshore delivery. It designs,
develops and maintains software systems and solutions, creates new applications and enhances the
functionality of the customers? existing software products. It delivers services across all stages of the
product lifecycle, which enables it to work with a widerange of customers and allows it to develop,
3

enhance and deploy its customers? software products. It has been recognized as one of the leading
technology companies in the Deloitte Touche Tohmatsu Technology Fast 500 Asia Pacific 2009.
The company is having depth of experience in the focused areas of telecommunications, life sciences
and infrastructure and systems. It has invested and plans to continuously invest in new technologies
and frameworks in the areas of cloud computing, analytics, enterprise collaboration and enterprise
mobility. The company is an innovator and helps its customers to build innovative solutions. This was
recognized when it won the 2008 NASSCOM Innovation Award. Its comprehensive suite of service
offerings allows it to attract new customers and expand existing customer relationships. Over the past
five years, the company has contributed to more than 3,000 product releases for its customers.
The company is focused on outsourced software product development for its customers. It works with
companies who build and deploy software products across all phases of the product lifecycle. It
designs, develops, maintains, supports, extends, and deploys software products for its customers. The
company's teams trained with its proprietary techniques, timetomarket accelerators, connectors and
integration services and processes help its customers to deliver products to their endusers efficiently.

How Persistent was formed

It was in the second week of March 1990 that Anand called me from the USA to inform that he
planned to return to India after about six months. He said that, on his return, he wanted to start a
Software Export Unit at the Software Technology Park (STP) that was being set up in Pune, India.
The president was then working with kirloskar Pneumatic Company (KPC),Pune and had no idea
about software export activities or STP.
Anand informed him that STP was an initiative of the Department of Electronics (DoE), Government
of India, New Delhi and Dr. Sunil Kulkarni had been appointed by DoE as an Officer on Special
Duty (OSD) to set up the STP activities in Pune. Anand asked him to meet Dr. Kulkarni and
enquire about accommodation for his unit at STP, Pune.
Dr. Kulkarni informed him that DoE had taken on rent two blocks in Electronic Sadan
at Bhosari to accommodate 12-14 participants. Action had already been initiated to set up the
infrastructure. DoE had already contacted software units in Pune that were already operating
as 100% Export Oriented Units (EOU) under the Ministry of Industries, to join the STP. He
further advised him to attend a meeting on March 22, 1990 to be addressed by Mr. Oberoi, Senior
Director of DoE, New Delhi.
He attended the meeting. About 30 representatives of various companies were present. Mr.
Oberoi, after explaining the rationale for starting STP, asked all representatives to
book the area needed by their units. He was informed, however, that Anand would be given
accommodation only after he formed and registered a Company.
He was unaware of the processes to be followed for forming a Company. However, his colleague
and friend in KPC, Mr. C. S. Pathak, explained to him the process to be followed for forming a
Private Limited Company (PLC). He then advised him to take the help of Mr. Mahesh Risbud, a
practising Company Secretary in Pune, for forming a PLC.
He also obtained a No Objection Certificate from KPC for forming a PLC for Anand. Mr.
Risbud informed him that the first step towards forming a PLC was to decide on a name for
the Company and apply to the Registrar of Companies (RoC) for getting
approved. Anand further advised the president to provide two other alternative names in the
application. The application had to be signed by at least two persons, who would be called
Promoter Directors.
Anand gave him three names, viz. 1) Persistent Technology Private Limited 2) Persistent Systems
Private Limited and 3) Interop Systems Private Limited. The application for name approval was
filled in and signed by me and Anand's mother on March 27, 1990. It was Gudhi Padva day. The
RoC approved the second option, Persistent Systems Private Limited. Thereafter, within
four weeks, Mr. Risbud submitted the registration documents to the RoC, who subsequently
approved the documents.
Persistent Systems Private Limited (PSPL) came into existence on Wednesday, May 30,
1990.
When he applied to STP authorities to grant PSPL space, he was informed that all the
4

available spaces in the first phase had been allotted. He was advised to wait till the
infrastructure for the second phase got completed in Electronic Sadan No. 3.
In the meanwhile, as advised by Mr. Anand Khandekar, Managing Director, Yojana Systems,
he contacted Mr. Ajit Phadke, a practising consultant, on how to get other formalities completed
for operating a PLC for exports.
Anand helped in getting his residence 'Renuka' registered as the Registered Office of PSPL;
registering PSPL as a Small Scale Industry for getting two telephone connections, one
for the office and the second for the MD's residence; obtaining a CNX No. from the Reserve
Bank of India; registering to obtain foreign exchange for foreign travel on business; and
opening a bank account in the Company's name in Bank of India.
Anand had finalized the designs for a common seal, monogram and letterheads for PSPL.
He then got the common seal fabricated and also got blank Share Certificates and other
stationery printed.
After completing all these formalities, all that we needed was accommodation in STP premises
with facilities for export through the Internet, customer orders, and of course, the staff
for programing and administration.
Anand returned to India on October 19, 1990 and took charge as Chairman and Managing
Director of PSPL on the same day, and also took charge of all activities. Thus,
Persistent's first employee was enrolled on October 19, 1990.

1.4 Products:

Radia: Consistently and Efficiently Manageall the endpoint devices in an enterprises

Rovius: Convert, Migrate, Replicate and recover workloads across both physical and virtual
environments
Convirtue: Unified management of your virtualization and cloud platform
rCloud: True cloud continuity and availability of your business even during a disaster

Advanced Consulting Partner of Amazon Web Services (AWS)

Persistent Systems is an Advanced Consulting Partner of Amazon Web Services (AWS). The
ANP Consulting Partner program is designed to help companies expand their capabilities and
marketing potential of their solutions and services through exposure by AWS and building
relationships with fellow providers in the AWS ecosystem. As an AWS Solution Provider and
Consultant, Persistent has combined its domain knowledge, technology expertise and hands-on
experience on AWS to help develop a rich set of cloud based tools and solutions for
independent software vendors and enterprises.

Global Strategic Partner of Appian

Persistent Systems has been a global strategic partner of Appian for over 5 years now. As an
Appian solution provider and consultant, Persistent brings deep domain knowledge, technology
expertise and hands-on experience on BPM to help build a rich set of tools and solutions for
independent software vendors and enterprises. Our experts help companies overcome critical
business challenges and build new or improved business processes and workflows using
Appian platform. We are the perfect partner to do a comprehensive assessment of your
business processes and define a roadmap for adoption of fit-to-business BPM strategy.
Persistent Systems provides customers with end-to-end services around Appian, right from
planning and migration to deployment, go-live and post implementation support.

Appnomic Systems Pvt Ltd.

Appnomic Systems is a leading provider of automated enterprise and Cloud IT performance

management solutions that help businesses migrate to, live, and thrive in Cloud and hybrid
environments. The companys flagship award winning product, AppsOne, is the industrys first
Application Behavior Learning (ABL) solution to leverage real-time application usage patterns
in its three-dimensional performance management model.
Persistent Systems is the first to partner with Appnomic on the AppsOne Application Migration
Program. The AppsOne Application Migration Solution combines AppsOne performance
benchmarking and monitoring platform with Persistents Cloud Assessment Tool (CAT) and
Cloud Migration Tool enabling companies to accelerate Cloud migration and to automate
before and after performance benchmarking.

Attivio

Attivios Active Intelligence Engine (AIE) brings together information from any source or
format, and enriches it to expose the relationships, patterns, and insights that are hidden within.
Their patented, agile platform eliminates the need for complex ETL and data modeling by
connecting to information, rather than moving it, and by automatically identifying the
relationships within, rather than relying on protracted planning cycles. This allows them to
6

deliver actionable insight in days or weeks, rather than the months or years required by others,
all without sacrificing the scalability, governance, and security required for enterprise-grade
deployments.
Persistent Systems has been a global implementation partner of Attivio since 2013, building,
deploying & maintaining enterprise solutions based on AIE platform to address various
business information challenges. We leverage our deep expertise and experience around
Enterprise Search, Content integration, Security, Big Data & Analytics to boost the power of
AIE platform. Persistent offers its best practices, tools and services to end customers to define,
architect, and commission appropriate solutions based on AIE platform.

Allotrope Partner Network Member

As an Allotrope Partner Network member, Persistent Systems leverages its Life Science
expertise to contribute in the development of a publically available Framework for analytical
laboratory. Comprising of pertinent software tools and libraries, the Framework will allow
utilization, implementation, and integration of data standards into analytical laboratory
workflows. Once adopted by the analytical community, the Allotrope Framework is aimed to
overcome growing data management problems. Persistent Systems is proud to be a part of this
framework creation and aims to improve efficiency in data acquisition, archiving, and
management for the analytical community, through its contribution.

Bio-Modeling Systems (BM Systems) Partner

Bio-Modeling Systems (BM Systems) and Persistent Systems have come together to develop a
much needed solution that will address the pharma and cosmetic industries need for predictive
modeling of skin in silico. Bio-Modeling Systems scientists have pioneered heuristic
biological modeling with their CADI* platform. By coupling this with Persistent Systems
strength in mathematical modeling and IT, we will develop a viable in silico alternative to
animal testing.
The strategic initiative is the worlds first collaborative effort that marries non-mathematical
heuristic modeling with mathematical modeling designed to increase the success rates of drug

discovery and formulation development by pharmaceutical and cosmetic industries. A key

deliverable of this joint initiative is the development of a predictive in silico or computer
simulated skin model that will help eliminate the need to use animals in contact allergy testing.

CollabNet

Persistent and CollabNet have partnered together to extend CollabNet platform for distributed
development, leveraging Persistent's expertise with global delivery model. Persistent's product
engineering services combined with CollabNet's development platform help customers
leverage virtual teams which are seamlessly integrated with their own R&D organization. Key
benefits include increased visibility and collaboration, faster software development cycles and
predictability of system configurations.

DataStax delivers Apache Cassandra, the leading distributed database technology, to the
enterprise. Apache Cassandra is built to be agile, always-on, and predictably scalable to any
size. With more than 400 customers in over 50 countries, DataStax is the database technology
and transactional backbone of choice for the worlds most innovative companies such as
Netflix, Adobe, Intuit, and eBay. Based in Santa Clara, Calif., DataStax is backed by industryleading investors including Comcast Ventures, Crosslink Capital, Lightspeed Venture Partners,
Kleiner Perkins Caufield & Byers, Meritech Capital, Premji Invest and Scale Venture Partners.
Persistent has partnered with DataStax to leverage its deep expertise and experience around
Cassandra based distributed enterprise data management platforms, implementation of large
data and integrated analytics solutions for telecom, media, financial services and retail clients.
Persistent has developed an automated NoSQL schema migration workbench that explores the
existing RDBMS schema, data statistics, query workloads and applies rules on the extracted
data and suggests an optimal Cassandra schema. We also provide architectural consulting to
help integrate Cassandra alongside traditional RDBMS products in an enterprise.

Google Enterprise Professional Program

Persistent Systems has partnered with Google as a part of Google Enterprise Professional
program. This partnerships enables us to extend the power of Google search, leveraging
Persistent's large suite of custom connectors to a variety of portals, document management
systems, Enterprise Content Management systems and so on. This offering will enable
Google's customers get more value out of their Google Search Appliance deployments.

IBM Advanced Business Partner

Persistent Systems is 'IBM Advanced Business Partner'. Persistent Systems in partnership with
IBMprovides professional services for product customization, cloud enablement,
deployment, configuration, post implementation support and cross brand product integration.

Mendix

Mendix is the app platform for the enterprise. The Mendix App Platform enables companies to
build, integrate and deploy web and mobile applications faster and with better results,
effectively driving ROI in days, not months. Mendix's platform as a service (PaaS) has been
adopted by industry leaders around the world.
Persistent Systems has partnered with Mendix. The partnership highlights the growing interest
9

from systems integrators and solution providers in rapid software delivery strategies that can
provide them with a competitive edge to win new projects. Adopting the Mendix App Platform
will enable Persistent Systems with highly agile rapid application delivery.

LumenData

LumenData is a leading provider of Enterprise Information Management solutions with deep

expertise in implementing Data persistence layers for data mastering, prediction systems, and
data lakes as well as Data Strategy, Data Quality, Data Governance, and Predictive Analytics.
Through a combination of highly trained consultants, strong partnerships, relentless focus on
quality and executive oversight, LumenData has successfully delivered planning,
implementation, integration, maintenance, and training services to over 50 blue chip clients in
various industries.
LumenDatas predictive analytics offering enables companies turn data into actionable insights
by leveraging advances in machine learning, big data, and cloud computing.
LumenData has offices in Santa Clara, New York, Denver, and Bangalore.

Motorola's PartnerSelect ISV Program Network

Persistent Systems is a member of Motorola's PartnerSelect ISV Program network. Persistent,

using in-depth knowledge of applications such as Wireless e-mail, Handset security and
Intranet/VPN connectivity, is working with Motorola in development of enterprise mobility
applications on Motorola handsets and EDA's, for a variety of vertical domains, including High
Tech, Consumer Retail and Finance.

Rackspace

Rackspace provides Persistent customers with hosting capabilities. Persistent also helps
Rackspace and its customers develop their applications, SaaSify, migrate and support their
data. Rackspace has proven to be the leader in the hosting industry for nine years, setting the

10

standard for what their customers can expect in customer service, technical support, expertise,
network uptime and server availability.

Thunderstone

Persistent Systems has partnered with Thunderstone to extend Thunderstone search, leveraging
Persistent's large suite of Enterprise Content Search-enabling connectors to a variety of portals,
document management systems, Enterprise Content Management systems and so on. This
offering enables Thunderstone customers get more value out of their Appliance deployments.

VMforce

VMforce is the first enterprise cloud for Java developers. With VMforce, Java developers can
build apps that are instantly social and available on mobile devices in real time. Persistent
Systems is a part of the VMforce partner program and is helping ISVs and Enterprises build
and migrate Java and Spring applications to VMforce. With Persistent's expertise in building
cloud applications and years of experience in Java & Spring platform, ISVs and Enterprises
can benefit from early adoption of VMforce cloud services to build next generation solutions
and also leverage existing IT assets migrating to VMforce cloud.

VMware (Enterprise) Solution Provider Program

Persistent Systems is a member of the VMware (Enterprise) Solution Provider Program.

Persistent Systems partners with VMware Professional Services to help customers deal with IT
transformation in a painless and efficient manner. With an excellent track record in
infrastructure services, system integration, IT management services and a team of highly
experienced professionals certified by VMware, Persistent Systems helps VMware customers
leverage virtualization technology to its fullest potential meeting their technical and business
requirements.

11

1.5 EVENTS AND AWARDS

2013

Opens Collaborative Software Development Center in Dublin, Ohio

Expanded India IT presence by opening office in Bangalore

Launched Malaysia subsidiary

Announced Licensing Agreement with Hewlett Packard for HP Client Automation Software
(Radia)

Acquired NovaQuest Reseller of Dassault Systmes 3DEXPERIENCE and PLM Applications

Attained ISO 13485:2003 Certification for Medical Device Software

Named Emerging Technology Finalist in Computerworld Honors Program

Named IAOP Leader in the Global Outsourcing 100

Ranked Top Service Provider in Enterprise Software Segment by Zinnov

Reached 7000 employees and 350 global clients

2012

Acquires Innovative Cloud Platform Business from Doyenz, Inc.

Ranked Top 100 Global Services Provider

Named Leading Player in the Software/ISV R&D & Consumer Software Segments by Zinnov

Named IAOP Leader in Research & Development Services

Launches Alan Turing Centenary Celebrations

Named Top Ten Companies for IR in India by Thomson Reuters

Opens State-of-the Art Facility in Pune

Acquires Openwaves Location Business

Offers Academic Research Grant to Indiana University

12

Awarded Excellence in Corporate Governance by ICSI

2011

Named Indian IT Company of the Year by Bloomberg UTV

Wins The Asset Award for Best Practices in Corporate Governance

Named to Global Services 100 List; Ranks Among Top Product Engineering Companies

Acquires Software Business from Agilent Technologies

Recognized as Leader in Cloud Computing and Software/ ISV R&D by Zinnov

Acquires Infospectrum

Wins Titanium Award at the Asset Triple A Corporate Awards

2010

M/1M Announces Partnership with Persistent Systems; CowardEngineering First Beneficiary.

Persistent Systems buys US firm Infospectrum

200910 Received DIN EN ISO 9001:2008 certification for the software design,
development, testing, support, enhancement services for the ChemLMS Product

200910 Acquired certain assets of Paxonix, Inc., a subsidiary of MeadWestvaco Corporation

through the wholly owned subsidiary of the Company viz. Persistent Systems, Inc.

200809 Formed a public charitable institute, Persistent Foundation to institutionalise the

Corporate Social Responsibility initiative

200809 Formed a wholly owned Subsidiary, Persistent Systems and Solutions Limited in
Pune, India

200809 Set up a branch office at Quebec, Canada

200708 Received an ISO27001:2005 Certification for Pune (except Hinjewadi), Nagpur and
Goa

200708 Set up branch offices at Ottawa and Vancouver, Canada

200708 Formed a wholly owned subsidiary, Persistent Systems Pte. Ltd. in Singapore

200708 Opened a branch office at Rotterdam, The Netherlands

13

200708 Signed an asset purchase and sale agreement with Metrikus (India) Private Limited,
Hyderabad, India and accordingly set up Hyderabad branch office

200708 Converted into a public limited company by a special resolution passed at the EGM
held on September 17, 2007. The fresh certificate of incorporation consequent on conversion was
issued to the Company on September 28, 2007 by the RoC

200607 Became a Search Appliance Partner? for Google Inc.

200506 Investment by Intel Mauritius

200506 Joint investment by Norwest and Gabriel

200506 Started operations at PingalaAryabhata?, new owned premises at Pune, India

200506 Acquired Goa based ControlNet (India) Private Limited

200405 Set up a branch office at Tokyo, Japan

200405 Joined Microsoft RFID partners council

200304 Development center at Nagpur, India became operational

200304 Set up a branch office at Edinburgh, Scotland, UK

200102 Started operations at Bhageerath? new stateoftheart owned premises at Pune,

India

200102 Appointed three Independent Directors on the Board

200102 Set up Persistent Systems, Inc., the wholly owned subsidiary in U.S.A.

200001 Investment by Intel 64 LLC

199900 Introduced employees stock options scheme

199899 Started operations at Panini? new owned premises at Pune, India

199091 Incorporated on May 30, 1990

Collaborations and Acquisitions

14

2012: Persistent Systems Strengthens Product Maintenance & Support Business;

Acquires OpenwavesLocationBusiness
2011: Persistent acquires OPD business of Infospectrum, Inc and its subsidiary Info
spectrumIndiaPrivateLimited.
2011: Sprint Nextel Corporation [NYSE:S] and Persistent Systems enter into a Joint Venture
2011: Persistent Systems acquires French Software Business from Agilent Technologies
2011: Persistent Systems Continues to Expand Footprint in Japan; Enters into a Strategic
PartnershipwithRealcom
2011:DassaultSystmes Partners withPersistentSystemsinIndia
2009: Agilent Collaborates with Persistent Systems, Joins DriverCentral.net to Promote Multivendor
Chromatography System Interoperability

Major Competitors oF Persistent Systems:

3i Infotech
7Seas Tech
Acropetal Tech
ADCC Infocad
AGC Networks
Blue Star Info
HCL Tech

2. ORGANIZATION OF COMPANY
2.1 Organizational Hierarchy

KEY PERSONS

Dr.AnandDeshpande, Chairman, MD & CEO

Mritunjay Singh, Executive Director & COO
Dr. Siddhartha Chatterjee,CTO

15

AbhayJere, Head, Persistent Labs

RohitKamat, CFO
Mr. AmitAtre, Company Secretary and Head Legal and Investor Relations
Sameer Bendre, Chief People Officer
RangaPuranik, President

2.2: Main office bearers of the Company

Dr. Anand Deshpande

Founder, Chairman and Managing Director

In the School of Informatics of Indiana University, and is a member of the Executive Committee of
MCCIA (Mahratta Chamber of Commerce Industries & Agriculture).
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. Anand is also a founder
member of Inter Institutional Inclusive Innovations Center (i4C). i4C is an
independent, non-profit entity which acts as a platform to proactively scout, showcase and
handhold technology innovations, especially aimed at the base of the pyramid. He is also
founding member of DeAsra Foundation, a non-profit entity which focuses on creating selfemployment at scale.
Anand holds a B. Tech (Hons.) in Computer Science & Engineering from IIT Kharagpur, and
a Master's degree and Ph.D. in Computer Science from Indiana University, Bloomington,
Indiana, USA.
Anand is married to Sonali. They have a daughter and a son.

Mritunjay Singh
Executive Director and Chief Operating Officer

Mritunjay Singh (Munjay) is the Executive Director and Chief Operating Officer for Persistent
Systems.Munjay has a Bachelor's Degree in Technology in Electronics & Communications
from IIT BHU, Varanasi.
He brings over 20 years of operations experience at start-ups and large companies in
16

India and abroad in the Financial Services and Insurance, Retail and Manufacturing
industries. Munjay has held various senior level positions in Account Management,
Delivery Management and Development Center Management at Infosys, Kanbay, S3C and Tata
Steel.
Prior to joining Persistent Systems, Munjay was Development Center Head for a
26,000+ people center in Pune and Delivery Head of the Financial Services ADM unit managing a
USD 400+ Million global business. He established the Singapore Development Center and
was credited with winning the company's first large outsourcing contract. Munjay was
instrumental in formulating key policies for the organization. Munjay also led the
Hinjewadi Industry Association in Pune for many years as its President, working very closely
with the Government to bring about systemic development to the high-tech area.
Munjay is married to Anupama and they have a son and a daughter.

2.3: CORE VALUES

Be a trusted partner for our customers

Win as a team

Demonstrate integrity, responsibility and quality in everything you do

Be Persistent

To be a well-respected technology company focused on delivering best in class innovative

solutions to its customers and partners.

Benefits
The governing theme in our organization is the well being of employees. The benefits we offer them
are on par with the best available. We have a comprehensive medical assistance program that covers
the entire gamut of medical expenses for the employee and employees family. Every employees
growth in the company will be complemented by self-development. Our educational assistance plan
offers all encouragement in pursuing the course of your interest

3. MARKET INFORMATION
3.1 GEOGRAPHIC MARKET
Geographic segmentation involves a business dividing its market on the basis of geography.
There are several ways that a market can be geographically segmented. You can divide your market by
geographical areas, such as by city, county, state, region (such as West Coast), country, or international
region (such as Asia). You can also divide the market into rural, suburban, and urban market segments.
You can segment a market by climate or total population in each area.
17

Advantages
Following are some advantages of geographic segmentation:
It's an effective approach for companies with large national or international markets because
different consumers in different regions have different needs, wants, and cultural characteristics

that can be specifically targeted.

It can also be an effective approach for small businesses with limited budgets. They can focus
on their defined area and not expend needless marketing dollars on approaches ill-suited for

their target geographic segment.

It works well in different areas of population density. Consumers in an urban environment
often have different needs and wants than people in suburban and rural environments. There

are even cultural differences between these three areas.

It's relatively easy to break your market down to geographic segments.
3.2 DEMOGRAPHIC MARKET

Demographic segmentation is market segmentation according to age, race, religion, gender,

family size, ethnicity, income, and education. Demographics can be segmented into several
markets to help an organization target its consumers more accurately. With this type of
segmentation, an organization can categorize the needs of consumers.
Advantages

One of the main advantages of demographic segmentation is that the information you need is
readily available for you. You can pull census data to determine who, where, and how you want
to market your product. For example, automobile industries can market their cars to different
age groups, income levels, and genders. Another way that businesses, such as automobile
industries, don't miss out on the growing market is by providing employees who are bilingual
to work with their customers. It is now very common to see business, TV and newspapers in

Spanish as well as English.

Another advantage of demographic segmentation is customer retention and loyalty. When an

organization spends time focusing on its customers and their wants and needs, customers will
typically come back for repeat business. In our automobile industry example, customers will
come back or recommend their friends and family if they were satisfied with their purchase.
3.3 PSYCHOGRAPHIC MARKET
18

Psychographic segmentation is dividing your market based upon consumer personality traits,
values, attitudes, interests and lifestyles. Segmentation will allow you to better develop and
market your products because there will be a more precise match between the product and each
segment's needs and wants. People have different interests, attitudes and traits. For example,
some people really care about the environment, while other people don't. Some people are very
fitness and health conscious while others are foodies. Some people take sports very seriously,
while some just want to have some fun on the weekends. Psychographic segmentation occurs
when you break your market down along these interests and attitudes so you can market the
appropriate product to each segment of the market.

Advantages
Psychographic segmentation gives a much better insight into the consumer as a person, which

more likely lead to the identification of underlying needs and motives.

Psychographic segmentation delivers a much better understanding of the consumer, which in
turn should create more valid and responsive segments and subsequent marketing programs.

19

4. FINANCIAL INFORMATION
4.1 BALANCE SHEET

20

Table 4.1: Balance Sheet

4.2 PROFIT AND LOSS ACCOUNT

21

Table 4.2: Profit and Loss account

22

4.3 GRAPHICAL PRESENTATION OF SALES

2500
2000
1500

Year
Sales

1000
500
0
1

Figure 4.3: Graph of Sales

4.4 RATIOS

4.4.1 NET PROFIT RATIO

March 2015
0.208

March 2014
March 2013
March 2012
0.209
0.182
0.169
Figure 4.4: Table of Net Profit Ratios

March 2011
0.218

4.4.2 CURRENT RATIO

March 2015
2.35

March 2014
March 2013
March 2012
3.45
3.45
2.96
Figure 4.5: Table of Current Ratios

March 2011
2.69

4.4.3 QUICK RATIO

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March 2015
2.29

March 2014
March 2013
March 2012
3.36
3.36
2.90
Figure 4.6: Table of Quick Ratios

March 2011
2.65

4.4.4 EARNING PER SHARE

March 2015
32.41

March 2014
March 2013
March 2012
62.14
45.45
34.35
Figure 4.7: Table of Earning Per Share

March 2011
33.40

4.4.5 DEBORS TURNOVER RATIO

March 2015
5.17

March 2014
March 2013
March 2012
March 2011
5.51
5.40
5.67
5.44
Figure 4.8: Table of Debtors Turnover Ratios

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5.CORPORATE GOVERNANCE AND CSR

5.1: Measures for Corporate Governance as per annual report 2012-2013:
The Company believes that corporate governance is a set of guidelines to help fulfill its
responsibilities to all its stakeholders
i.e. investors, customers, vendors, Government, employees, associates and society. It is a voluntary
code of self-discipline
to ensure transparency, accountability and integrity. The Company has set its corporate governance
philosophy to enhance
the long-term value of the Company's stakeholders.
Corporate governance practiced at the Company is not restricted to the Board of Directors. It is an
approach to sustainable development.
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. It may be worth repeating that consecutively
third year after Initial Public Offering, the Company has been recognized as one of the top five
companies for excellence in Corporate Governance by the Institute of Company Secretaries of India.
The Company was also awarded the prestigious Golden Peacock Award for Excellence in Corporate
Governance

Corporate Social Responsibility

5.2: CSR at Persistent

Persistent Systems recognizes its social obligations. In order to fulfill the Companys Corporate Social
Responsibility, Persistent Systems has been donating to the institutions, working primarily in the field
of Health and Education since the financial year 1995-96. The Company earmarks 1% of the
Consolidated Net Profit of the previous financial year for the purpose of donation in the subsequent
financial year. To institutionalize the Corporate Social Responsibility initiative of the Company and to
develop a systematic approach to administer the process of grant of donations, the Company formed a
public charitable trust "Persistent Foundation" in 2008 - 09.

25

Persistent Foundation is primarily involved in three key areas of Healthcare, Education and
Community Development. In the Healthcare area, the Foundation aims to establish or grant aid to
hospitals, welfare centers and establish or grant aid to institutions for physically handicapped or
mentally retarded persons. In education area, the Foundation aims to establish, support and grant
financial assistance to schools, colleges, libraries, laboratories, and other institutions for the use or
benefit of the students and run studentships and scholarships. On Community Development front, the
Foundation aims to establish, maintain or grant aid to aged homes, orphanages for relief and help to
needy and destitute people, establish and develop or grant aid to institutions which undertake welfare
and rehabilitative activities for addicts, grant medical, monetary or other relief to assist relief measures
for the relief of the needy victims, during natural calamities. Further, the Foundation aims to establish,
maintain, grant aid for the establishment or maintenance of wells, tube wells, tanks, canals, dams,
water reservoirs and plantation of trees for the use of public in general and to undertake projects of
rural developments, village improvements in all possible manner."
For the year 2012 at national level and was further ranked with Silver Shield for Excellence in
Financial Reporting by the
Institute of Chartered Accountants of India for the financial year 2011-12. It was consecutive second
year in succession
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 (CSR).
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
the employees, protecting the environment and the quality of life in all regions in which your
Company operates.
Your Directors are convinced that your Company's continued focus on sustainability will help to
grow the long-term value
of your Company and to realise our strategic priorities. CSR strengthens the motivation of your
Company's employees and
their identification with your Company and thereby creates the basis for a strong global team.
To institutionalise the CSR initiative of your Company, your Company formed a Public Charitable
Trust by the name 'Persistent
Foundation' in the financial year 2008-09.
During the year under report, Persistent Foundation was able to create excitement among
employees to participate
in socially relevant causes. With the cooperation of the employees of your Company,
Persistent Foundation has set up
several well-defined programs and activities for the promotion of education, health, community
welfare. These activities
are carried out through projects undertaken by the Foundation with the support of the employees and
through reputed
social organisations and institutions.
In addition to contributing ` 50.97 Million to Persistent Foundation, your Company made donations
of ` 0.99 Million to
various charitable institutions directly. Thus, during the year under report, your Company donated `
51.96 Million i.e. more
than 2% of the Average Net Profits of the Company made during three immediately preceding
financial years.

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5.3: CSR Committee and CSR Policy

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 them
for effective discharge of the social responsibility of your Company.
The Board of Directors of your Company has further approved the CSR Policy of the Company to
provide a guideline for
CSR activities of the Company. The CSR Policy is also uploaded on the Company's website at http://www.persistent.com/
investors/csr-at-persistent
The CSR Policy covers the following focus areas which the Company undertakes through its social
initiatives
Sectors Of Operation:

Healthcare
Financial Services
Legal
Education

Corporate social responsibility

Persistent Systems has been contributing to local and regional Health and Education institutions since
1995. The Persistent Foundation was formed in 2008 to institutionalize Corporate Social
Responsibility within Persistent and to develop a systematic approach to administer the process of
grant of donations. Persistent earmarks 1.25% of net profit for Persistent Foundation programs
annually.

At broad level, the Foundations comprises of the following:

Designing, planning and implementing its own social projects with the help of Persistent
Systems employees or partners from the respective domain

Supporting & facilitating social projects initiated and driven by Persistent Systems employees

Providing monetary support to a number of social initiatives of Associate NGOs by generating

funds through cause-specific donation drives among Persistent Systems employees

Capacity-building of Associate NGOs by providing them donations on annual basis

Organizing social events for networking, social cause awareness and knowledge-sharing
Today, the Persistent Foundation works in following 9 social domains of three major focus areas Health, Education & Community Development in Pune, Nagpur, Hyderabad & Goa.
27

HEALTH:
In Healthcare, the Persistent Foundation focuses on Childrens Health, Womens Health & Healthcare
for differently-abled & elderly people. In association with like-minded NGOs & implementation
partners the foundation undertakes various programs. Hallmark Projects in Healthcare are:
o

Childrens Health: 20 point clinical health check-up and weekly doctor facility at slum &
rural schools in Pune, Nagpur and Goa

Womens Health: Breast cancer screening program, health check-ups & health education of
urban slum women in Pune

Healthcare for Elderly & Differently Abled: Cataract operation projects across all locations,
facial cleft operation project, weekly healthcare facility for elderly care centers and special schools in
Pune
EDUCATION:
In Education, the Persistent Foundation focuses on Computer Education, Education for the poor, and
Girls Education. Hallmark projects in Education are:

Computer Education: Persistent Foundation E-school lab project, Cyber Champs, National
ICT quiz programs and SCRATCH training program run by Persistent employees

Education for the Poor: Student sponsorship program, School upliftment project, Mobile
Science Lab, Study centers at slums project

Girls Education: Girls scholarship program and 10th std. Reward program
COMMUNITY RESPONSIBILITY:
In Community Development, the Persistent Foundation focuses on Village Upliftment, Water
Conservation projects and Welfare activities for differently-abled & elderly people Hallmark projects
in Community Development are:

Village & Urban upliftment: 4 village upliftment projects in Pune region and 1 in Nagpur.
Village upliftment means providing all top prioritized health, education & other developmental
facilities

Pune Cyber & Forensic Labs: Persistent Foundation has availed cyber lab & forensic lab for
Pune Police.

Water Conservation Projects: Help resolve water scarcity situations in Velhe Bhor cluster,
Hiware village in Purander Taluka, and Vegare village near Mulashi

Welfare for Elderly: 2 elderly care centers upliftment involving provision of health and other
developmental facilities and monetary support to various differently abled schools

28

6. OBSERVATIONS AND FUTURE OUTLOOK

6.1: Forecasted outlook towards the company

Persistent Systems may be multibagger: Vikas Khemani

Vikas Khemani of Edelweiss Securities is of the view that Persistent Systems can be a multibagger
from current levels. VIKAS KHEMANI CEO - Wholesale Capital Markets Expertise : Equity Fundamental More about the Expert... 0 0Google +0 0 Bazaar 08:00 am Vikas Khemani of Edelweiss
Securities told CNBC-TV18, " Tata Consultancy Services (TCS) has been doing well for sometime. It
definitely looks like the margin of safety is low, but at the same time IT as a sector we are quite
positive because the demand in the developed market is just beginning to happen." He further added,
"We think that midcap IT and some of the underdogs in IT where they are trying to turnaround would
do well. One of the reasons why we have been very positive on Infosys for last few quarters is once
they get their act together, the significant upside in terms of valuations as well as the growth which is
what we are seeing and we think that from here also Infosys will continue to do well."
ADVERTISING "Also some of the midcap stocks would be on the radar and Persistent Systems is
one stock which we think has lot of promise from here on. The stock is trading at 11-12 times and
earnings can definitely do much better than the larger caps given the fact that they have almost 50
percent exposure to SMAC which is a new growing area. So that stock definitely can be a multibagger
from here," Khemani said. He further said, "Tech Mahindra is also doing well. We have seen
somewhat catch-up in the midcap IT sector, but we think that is likely to continue. So IT story is not in
my opinion a sad story, it is going to continue for sometime and you will see earnings growth coming
back, you will see valuation continue to trade well. I say many times that this is a new consumer in
making because the construct of the balance sheet, business nature is same, high ROC, good growth,
so why can't this sector also go to the high valuation area."
29

BIBLIOGRAPHY
http://www.persistent.com/sites/default/files/Persistent%20Systems%20-%20Consolidated
%20Financials%20-%20Q4%20FY15.pdf
Persistent Systems IPO subscribed 93.3 times Reuters, 19 March 201
Persistent takes over Info spectrum Times of India, 3 February 2011
"Persistent Newsroom".
Dr. Anand Deshpande (2009-04-10). "How he built a $100-million company" (Press release).
Rediff.com.

30