CONSOLIDATION OF A VARIABLE INTEREST ENTITY

6 Months Ended

Jun. 30, 2017

CONSOLIDATION OF A VARIABLE INTEREST ENTITY

20. 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 11.2% and 10.7% of the Company’s total revenues for the three months ended June 30, 2017 and 2016, respectively and 11.5% and 10.6% for the six months ended June 30, 2017 and 2016, respectively.