CONSOLIDATION OF A VARIABLE INTEREST ENTITY

9 Months Ended

Sep. 30, 2015

CONSOLIDATION OF A VARIABLE INTEREST ENTITY

19. CONSOLIDATION OF A VARIABLE INTEREST ENTITY

Syntel Delaware is a 100% subsidiary of Syntel, Inc. and a 49% shareholder of the joint venture (“JV”) entity SSSSML, the other shareholder being an affiliate of State Street Bank. Syntel Delaware has a variable interest in SSSSML as it is entitled to all the profits and solely responsible for all losses incurred by SSSSML even though it holds only 49% in the JV entity. Accordingly, Syntel Delaware consolidates the JV entity SSSSML.

The Company’s Banking and Financial Services to State Street Bank and one other client are provided through the above joint venture between the Company and an affiliate of State Street Bank. Sales of Banking and Financial Services to these two clients represented approximately 11.6% and 12.7% of the Company’s total revenues for the three months ended September 30, 2015 and 2014, respectively and 12.0% and 13.0% for the nine months ended September 30, 2015 and 2014, respectively.