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Oracle Financial Services Software Limited Oracle Park phone +91 22 6718 3000
Off Western Express Highway fax +91 22 6718 3001

Goregaon (East) oracle.com/financialservices
Mumbai, Maharashtra 400063
India
CIN: L72200MH1989PLC053666
July 18, 2020
To, To,
Asst. Vice President Asst. General Manager

Listing & Compliance Listing & Compliance
National Stock Exchange of India Limited BSE Ltd.
Exchange Plaza 1st Floor, Phiroze Jeejeebhoy Towers,
Bandra-Kurla Complex Dalal Street,
Bandra (East) Mumbai 400 001
Mumbai 400 051
Scrip Code OFSS Scrip Code 532466
Sub: Annual report 2019-20
Pursuant to Regulation 34(1) of SEBI (Listing Obligations and Disclosure Requirements)

Regulations, 2015, we enclose herewith the Annual Report of the Company along with the
Notice of Annual General Meeting for the financial year 2019-20, which is being sent through
electronic mode to the members.
at: https://www.oracle.com/a/ocom/docs/industries/financial-services/ofss-annual-report-
2019-20.pdf.
This is for your information and records.
Thanking you,
Yours sincerely,
For Oracle Financial Services Software Limited
Onkarnath Banerjee
Company Secretary & Compliance Officer
Membership No. ACS8547
Encl: Annual Report 2019-20
Registered Office: Oracle Park, Off Western Express Highway, Goregaon (East), Mumbai, Maharashtra 400063, India
Oracle Financial Services Software Limited
Annual Report
2019−20
Letter to Shareholders
On behalf of the Board of Directors, I am pleased to report that for the financial year ended March 31, 2020, your Company
posted consolidated revenue of ₹ 48.6 billion. Consolidated net profit for the current financial year grew 6% over the previous
financial year to reach ₹ 14.6 billion.
Our growth streak continued with strong deal momentum around the world with wins across our platform with new and existing
customers. The customers included top banks in US, Japan, Australia, Europe, APAC and Africa. A leading Japanese bank
licensed Flexcube. A regional bank in Africa signed a multi country enterprise deal. LAPO Microfinance Bank, Nigeria’s largest
microfinance bank with four million customers, is implementing FLEXCUBE as well as Oracle Banking Digital Experience, Oracle
Banking Payments and Oracle Financial Services Analytical Applications. Central Bank of Libya in Tripoli, which includes four
of Libya’s public sector banks, is also upgrading its current FLEXCUBE solution. Multiple banks including Al Nile Bank, Balad
Bank in Sudan, as well as Libya’s Alyaqeen and Andalus Banks, chose Oracle Banking Digital Experience alongside FLEXCUBE
to enhance their operations. Other wins for the year include, My Bucks Banking Corporation, a new banking entity in Malawi,
has invested in the latest banking technology by signing a deal for Oracle FLEXCUBE Universal Banking and Oracle Banking
Digital Experience. Westlake Financial Services, a Southern California based finance company has extended its relationship by
signing a deal for Oracle Financial Services Lending and Leasing for servicing and collection of loans. A leading Canadian bank
has extended its relationship with Oracle by signing a deal for Oracle Financial Services Analytical Applications. A top Australian
bank has extended its relationship with Oracle by signing a deal for Oracle Banking Platform.
Through the financial year, we continued to strengthen our solutions portfolio to help financial institutions in their
transformation initiatives. We introduced Oracle Banking Enterprise Originations, localized and compliant for UK banks and
building societies. We announced the availability of Oracle Financial Services Anti Money Laundering (AML) Express Edition.
Targeted at small and mid-sized banks, the solution is available at a lowered total cost of ownership without compromising core
functional capabilities. This is an engineering breakthrough that your Company has made possible with the use of modern
cloud-compatible architectures. We launched Oracle Banking Supply Chain Finance, a comprehensive digitized end-to-end
solution that supports the full lifecycle of supply chain finance across receivables and payables offering supplier centric and
buyer centric financing.
The Company has been at the forefront of innovation to ensure our customers stay ahead in today’s shifting business landscape.
We introduced machine learning frameworks, included Chatbots and built Internet of Things (IoT) capabilities into several
products. We also received a patent for our “Computerized Transaction Management Module for Blockchain Networks” that allows
Oracle FLEXCUBE customers to instantly utilize the power of Blockchain. The Financial Crime and Compliance Management and
Anti-Money Laundering portfolio was enhanced with new capabilities and solutions, leveraging machine learning for analytical
capabilities, Robotic Process Automation (RPA) for workflows, and graphic analytics for the visualization of networks. These
offerings are setting a new industry standard and turning compliance into a competitive advantage for banks.
Forging a path towards better banking, our products and services continued to win us and our customers several accolades
and industry recognition. Oracle FLEXCUBE has been recognized as a ‘Leader’ in the Gartner Magic Quadrant for Global Retail
Core Banking, 2019. Oracle Asset Liability Management won ‘Product of the Year’ at Asia Risk Technology Awards 2019. The
Company remained among the top three vendors in Chartis RiskTech100, 2020 for the fifth consecutive year, while retaining
awards in two categories: core technology, data integrity and control. Arbuthnot Latham, a FLEXCUBE customer in the UK, has
won the title “Bank of the Year – 2019” in the City A.M. awards beating digital challengers and some of the bigger UK high street
banks. Westpac, one of our key customers in Australia, running Oracle Banking Platform, took the coveted iTnews benchmark
award in finance for its work on the single view of the customer.
As we closed the year, we faced the unprecedented disruption due to global COVID-19 pandemic. The Company proactively
switched to work from home to keep employees safe and avoid exposure. This was the time when our customers had joined
the battle with the local government in respective countries and needed our support. Our sales and services have increasingly
taken on a digital format, while our robust infrastructure, business continuity programs and most importantly our people have
ensured that we deliver our customer commitments with minimal disruptions. With processes that support the delivery of
products, services, and software from anywhere, anytime, your Company has helped customers alleviate the negative impact
of the pandemic. We have many heartening stories and accolades from our customers. While the uncertainty due to COVID-19
continues, our value proposition remains very relevant and even more so as the economic recovery begins.
On behalf of the Board of Directors and Management of Oracle Financial Services Software, I would like to thank you for your
support through this financial year. I look forward to your continued patronage as we chart a new path towards fulfilling our
mission of providing world class solutions for the financial services industry.
Regards,
S Venkatachalam
Chairperson
1
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Oracle Financial Services Software – Annual Report 2019-20

Contents
Ten year history 4
Corporate information 5
Directors’ report 8
Corporate governance report 36
Management’s discussion and analysis 51
Consolidated financials 65
Unconsolidated financials 141
Notice of annual general meeting 207
Annual General Meeting

Day and Date : Tuesday, August 18, 2020
Time : 5.00 p.m.
Mode : Video Conference / Other Audio Visual Means
3
Ten year history
Operating revenue Operating income

55,000 22,000 20,909 20,749
49,589
50,000 48,613 20,000
44,265 45,275
45,000 18,000 17,498
41,312
39,049 16,006
40,000 37,413 16,000 14,827
15,368
34,740
in ₹ million
35,000 14,000
in ₹ million
13,277
31,467
29,969
30,000 12,000 10,812 11,537
10,645
25,000 10,000
20,000 8,000
15,000 6,000
10,000 4,000
5,000 2,000
0 0
10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-20 10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-20
Net income Earnings per share
16,000 180
14,622 170.3
13,859 158.3 161.4
14,000 13,593 160
12,370 138.8 144.0
11,923 11,854 140 138.0
12,000 129.4
11,110 10,751 125.2 122.1
10,489 120
in ₹ million
10,000 105.9
9,093
100
in ₹
8,000
80
6,000
60
4,000
40
2,000 20
0 0
10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-20 10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-20
Earnings per share is computed on the equity capital base of 85,879,298 shares
as on March 31, 2020.
Customers serviced ... in countries

1,500 160
1,401
1,400 1,362 155 154
155
1,318 152
Number of customers
1,300 1,289
1,247 150 148
1,195 147
1,200
Country base
145
1,132 145
1,100 1,084 142
141 141
1,028 140 139
1,000 971
135
900
800 130
700 125
600 120
10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-20 10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-20
Note:
Amounts for financial year 2010-11 to 2014-15 are as per Consolidated Indian GAAP and for financial year 2015-16 to 2019-20 are as per
Consolidated Ind AS.

Corporate information
Board of directors
S Venkatachalam, Chairperson
Chaitanya Kamat, Managing Director and Chief Executive Officer
Harinderjit Singh
Jane Murphy
Kimberly Woolley
Makarand Padalkar, Whole-time Director and Chief Financial Officer
Richard Jackson
Sridhar Srinivasan
Vincent Secondo Grelli
Yong Meng Kau
Company secretary and Bankers

Compliance officer Barclays Bank PLC HSBC Bank
Onkarnath Banerjee Canara Bank J P Morgan Chase
Citibank, N.A. Kotak Mahindra Bank Ltd.
Chief accounting officer Deutsche Bank AG Yes Bank Ltd.
HDFC Bank Ltd.
Avadhut (Vinay) Ketkar
Legal counsel Management team

Mohamed Yacob
Arvind Gulhati Rajaram N Vadapandeshwara
Registered office Bindu Venkatesh Rajendra Potdar
Oracle Financial Services Software Edwin Niranjan Moses Ravikumar V

Limited
George Thomas S Bhargava
Oracle Park
Off Western Express Highway Goutam Chatterjee Sanjay Bajaj
Goregaon (East)
Mumbai 400063, Maharashtra, India Gregory Chapple Sanjay Kumar Ghosh
CIN: L72200MH1989PLC053666 H S Teji Surendra Shukla
Karthick R Prasad Tushar Chitra

Registrar & Transfer Agents
Laura Balachandran Umesh Arora
Link Intime India Private Limited
C 101, 247 Park Mahesh Kandavar Rao Venkatesh Srinivasan
L B S Marg, Vikhroli (West)
Manish Chandra Gupta Vikram Gupta
Mumbai 400083, Maharashtra, India
Mudit Govil Vinayak L Hampihallikar
Auditors Mustafa Moonim Vivek Jalan
Mukund M. Chitale & Co.
Chartered Accountants
5
Offices
India Asia Pacific

Oracle Financial Services Software Limited Oracle Financial Services Software Pte. Ltd.
7-8, R-Tech Park 1 Fusionopolis Place
Nirlon Knowledge Park # 12-10 Galaxies
Off Western Express Highway Singapore 138522
Goregaon (East), Mumbai 400063
Maharashtra, India Akasaka Center Building 13F
1-3-13 Moto Akasaka, Minato-ku
Oracle Park, Ambrosia Tokyo 107-0051, Japan
Pune 411021, Maharashtra, India
Level 8, 4 Julius Avenue
C/o Embassy Business Park North Ryde
C.V. Raman Nagar Sydney, NSW 2113, Australia
Bengaluru 560093, Karnataka, India
Level 4, 417 St. Kilda Road
Gopalan Enterprises (I) Pvt. Ltd., (SEZ) Melbourne VIC 3004, Australia
Global Axis, Unit 1 & 2
Plot # 152, EPIP Zone, Whitefield Oracle Financial Services Consulting Pte. Ltd.
Bengaluru 560066, Karnataka, India 1 Fusionopolis Place
# 12-10 Galaxies
Green I-Tech, # 5 Singapore 138522
Muthiah Mudali Street, Off Cathedral Road
Chennai 600086, Tamil Nadu, India
Oracle Financial Services Software (Shanghai) Limited
Oracle (OFSS) ASP Private Limited Unit 806, Henderson Metropolitan Building
Oracle Park, Off Western Express Highway 155, Tianjin Road, Shanghai 200001
Goregaon (East) People’s Republic of China
Oracle (OFSS) Processing Services Limited

Oracle Park, Off Western Express Highway
Goregaon (East)
SDF-1, Unit 12, SEEPZ - SEZ

Andheri (East)
C/o Embassy Business Park

C.V. Raman Nagar
Bengaluru 560093, Karnataka, India
Oracle (OFSS) BPO Services Limited

F 01/02, First Floor, Salcon Rasvilas
D-1 District Centre, Saket
New Delhi 110017, India
DLF Infinity Tower A, 3rd Floor

DLF Cyber City, Phase II
Gurgaon 122002, Haryana, India
Mantas India Private Limited


Offices
Europe, Middle East & Africa (EMEA) Americas
Oracle Financial Services Software B.V. Oracle Financial Services Software America, Inc.
Barbara Strozzilaan 201 Oracle Financial Services Software, Inc.
NL-1083 HN Amsterdam Oracle (OFSS) BPO Services Inc.
The Netherlands Mantas Inc.
399 Thornall Street, 6th Floor
Mainzer Landstrasse 49a Edison, NJ 08837 USA
60329 Frankfurt am Main, Germany
8000 Norman Center Drive, Suite 700
Level 29, 40 Bank Street Bloomington, MN 55437 USA
Canary Wharf
London E14 5NR, UK 1910 Oracle Way, 2nd Floor
Reston, VA 20190 USA
Suite 22, Portes de la Defense
15, boulevard Charles de Gaulle Oracle Financial Services Software Chile Limitada
92700 Colombes, France Av. Vitacura 2939
Edificio Millenium - 14th Floor
13-18 City Quay Dublin 2 Las Condes, 7550011
D02 ED70 Ireland Santiago, Chile
Oracle Financial Services Software SA

265 Mesogheion Avenue
Neo Psychico 15451
Athens, Greece

Bld.6/1, Village Moskovsky
22nd km Kievskoe Route
108811, Moscow, Russian Federation
Park Rotana, Level One, Office 108

Khalifa Park, Sector E-48
PO Box 769441
Abu Dhabi, UAE
The Edge Building

2nd Floor, Plot A-004-038
Al Falak St. Dubai Internet City
Dubai, UAE
ISP Internet (Mauritius) Company

C/o IQEQ Corporate Services (Mauritius) Limited
33, Edith Cavell Street
Port Louis 11324
Mauritius

7
Directors’ report
Financial year 2019-20
Dear Members,
The Directors present their report on the business and operations of your Company along with the Annual Report and
audited financial statements of the Company for the financial year 2019-20.
Financial highlights
As per Consolidated financial statements: (Amounts in ₹ million)
Particulars Year ended Year ended
March 31, 2020 March 31, 2019
Revenue from operations 48,612.76 49,589.03
Finance income 1,658.14 1,319.73
Other income, net 115.25 441.19
Total income 50,386.15 51,349.95
Depreciation and amortization (1,063.81) (537.17)
Profit before tax 22,522.81 22,669.87
Tax expenses (7,900.64) (8,810.89)
Profit for the year 14,622.17 13,858.98
Other comprehensive income for the year 1,035.89 226.49
Total comprehensive income for the year 15,658.06 14,085.47
As per Unconsolidated financial statements: (Amounts in ₹ million)

March 31, 2020 March 31, 2019
Finance income 1,508.73 1,173.47
Other income, net 182.86 216.03
Total income 36,946.67 37,198.47
Depreciation and amortization (831.72) (501.98)
Tax expenses (4,259.23) (7,039.45)
Other comprehensive income for the year (33.54) 25.83
Performance
On consolidated basis, your Company’s revenue stood at ₹ 48,612.76 million this year, down 2% compared to
₹ 49,589.03 million of the previous financial year. The net income for the current financial year was ₹ 14,622.17
million, an increase of 6% compared to ₹ 13,858.98 million of the previous year. On an unconsolidated basis, your
Company’s revenue stood at ₹ 35,255.08 million during the current financial year, decrease of 2% compared to
₹ 35,808.97 million of the previous year. The net income for the current financial year was ₹ 15,826.56 million,
an increase of 23% compared to ₹ 12,824.70 million of the previous year. Previous years’ figures have been
re-arranged / re-classified, wherever necessary, as per the applicable regulations.
A detailed analysis of the financials is given in the Management’s discussion and analysis report that forms part of this
Annual Report.
Dividend
The Company declared an interim dividend of ₹ 180 per equity share of ₹ 5 each on May 8, 2020 for the financial year
ended March 31, 2020. The Board of Directors has not recommended any additional final dividend for the financial
year 2019-20.

Transfer to reserves
The Company does not propose to transfer any amount to the General Reserve out of the amount available for
appropriation.
Particulars of loans, guarantees or investments

The particulars of loans, guarantees and investments have been disclosed in the financial statements.
Share capital
During the financial year 2019-20, the Company allotted 100,151 equity shares of face value of ₹ 5 each to its eligible
employees and Directors who exercised their stock options under the prevailing Employee Stock Option Schemes of
the Company. As a result, the paid-up equity share capital of the Company as on March 31, 2020 was ₹ 429,396,490
divided into 85,879,298 equity shares of face value of ₹ 5 each.
Extract of annual return

Pursuant to Section 92(3) of the Companies Act, 2013 and Rule 12(1) of the Companies (Management and
Administration) Rules, 2014, extract of Annual Return (in form MGT-9) for the financial year ended March 31, 2020
is annexed as Annexure 1 to this report.
Directors and key managerial personnel

Mr. Chaitanya Kamat and Mr. Harinderjit Singh, Directors of the Company, retires by rotation at the ensuing Annual
General Meeting and being eligible, offers themselves for re-appointment. Resolutions seeking Members’ approval for
their re-appointment forms part of the Notice.
Changes in Board during the year:
a. Ms. Maria Smith resigned as a Non-Executive, Non-Independent Director of the Company, with effect from
May 9, 2019.
b. The Members of the Company at the Annual General Meeting held on August 8, 2019 approved:
- Appointment of Mr. Makarand Padalkar, Chief Financial Officer of the Company as the Whole-time Director
and Chief Financial Officer of the Company for a term of five consecutive years from May 9, 2019 to
May 8, 2024, liable to retire by rotation.
- Appointment of Mr. Yong Meng Kau, as a Non-Executive, Non-Independent Director of the Company,
liable to retire by rotation.
- Appointment of Mr. Vincent Secondo Grelli as a Non-Executive, Non-Independent Director of the Company,
- Appointment of Ms. Jane Murphy as a Non-Executive, Independent Director of the Company, for a term of
five consecutive years up to December 31, 2023.
- Re-appointment of Mr. Sridhar Srinivasan, Non-Executive, Independent Director of the Company, for a
further term of five consecutive years from April 1, 2020 up to March 31, 2025.
Brief resumes of the Directors proposed to be re-appointed, the nature of their expertise, and the names of companies
in which they hold directorships and Chairpersonships / Memberships of Board Committees, etc. are provided in the
Notice to Members forming part of this Annual Report.
The Directors seeking re-appointment are not debarred from holding the office of Director pursuant to any
Securities and Exchange Board of India (“SEBI”) order. All the Independent Directors of the Company have given
declaration under Section 149(6) of the Companies Act, 2013 and clause (b) of sub-regulation (1) of regulation 16 of
Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“Listing
Regulations”) confirming that they meet the criteria of independence. The Independent Directors have also confirmed
that they have complied with Schedule IV of the Companies Act, 2013 and the Company’s Code of Conduct.
During the year, there were no changes to the Key Managerial Personnel.
Number of meetings of the Board

Six meetings of the Board were held during the financial year 2019-20. For details of meetings of the Board, please
refer to the Corporate Governance Report which is a part of this Annual Report.
Board Committees
The details pertaining to Committees of the Board are included in the Corporate Governance Report which is a part of this
Annual Report.
9
Board policies
The Company has formed following policies as required by the Companies Act, 2013 and Listing Regulations:
Particulars Details Website link for policy / details

Code of ethics and business This code defines and implements Oracle https://www.oracle.com/assets/
conduct policy ethical business values and sets forth key cebc-176732.pdf
rules and employee responsibilities. It also
provides a context to handle any questions,
issues, or concerns. The Code also covers the
vigil mechanism and whistle blower policy.
Corporate social This policy governs corporate social http://www.oracle.com/us/
responsibility policy responsibility (CSR) program of the industries/financial-services/ofss-
Company and covers details of CSR activities social-responsibility-2437852.pdf
that it can undertake and how to implement,
monitor, and report on these activities.
Directors' appointment This policy governs the manner of https://www.oracle.com/a/ocom/
policy appointment of Directors of the Company. docs/industries/financial-services/
directors-appointment-policy.pdf
Dividend distribution policy This policy details the factors to be http://www.oracle.com/us/
considered by the Board while deciding or industries/financial-services/
recommending any dividend. ofss-dividend-distribution-
policy-3125465.pdf
Familiarization program Details of Company’s familiarization program https://www.oracle.com/a/ocom/
for its new directors including independent docs/industries/financial-services/
directors. financial-familarization-program.pdf
Policy for determination This policy provides framework for http://www.oracle.com/us/
of material events / determination of material events / industries/financial-services/policy-
information information and sets out classes and types determination-events-2889567.pdf
of material events / information that require
disclosure to stock exchanges.
Policy for determining This policy defines material subsidiaries and http://www.oracle.com/us/
material subsidiaries describes related actions to be taken by the industries/financial-services/policy-
Company with significant transactions with determining-material-2615655.pdf
them.
Record retention policy The policy details the requirements for http://www.oracle.com/us/
retention and destruction of the Company’s industries/financial-services/record-
records in hard copy and electronic media. retention-policy-2889568.pdf
Related party transactions This policy sets out the principles and http://www.oracle.com/us/
policy processes that apply in respect of industries/financial-services/ofss-
transactions entered into by the Company party-transactions-policy-2288144.
with a related party. pdf
Remuneration policy This policy establishes principles http://www.oracle.com/us/
governing remuneration of the directors, industries/financial-services/ofss-
key managerial personnel and senior remuneration-policy-4492725.pdf
management of the Company.
Related party transactions

All related party transactions entered into during the financial year 2019-20 were at an arm’s length basis and in the
ordinary course of business. Form AOC-2 providing the details of related party transactions of the Company is annexed
as Annexure 2 to this report.
Risk management
The Board of Directors of the Company has formed a Risk Management Committee to frame, implement and monitor
the risk management plan for the Company and ensuring its effectiveness. The Audit Committee has additional
oversight in the area of financial risks and controls. The major risks identified by the businesses and functions are
systematically addressed through mitigating actions on a continuing basis. The development and implementation of
risk management policy has been covered in the Management's Discussion and Analysis Report, which forms part of
this Annual Report.

Board evaluation
In accordance with the requirements of the Section 178 of the Companies Act, 2013 and Regulation 17(10) of the
Listing Regulations, the Chairperson of the Nomination and Remuneration Committee conducts the Board evaluation.
The performance of the Board and its committees was evaluated by seeking inputs from all the directors on the basis
of various criteria such as its composition and structure, effectiveness of processes / meetings, information sharing
and functioning, etc. The Board evaluation report for financial year 2019-20 was adopted at the Board Meeting held
on May 14, 2020.
Subsidiaries
Your Company has subsidiaries in Greece, India, Chile, China, Mauritius, Singapore, the Netherlands and the United
States of America.
Pursuant to provisions of Section 129(3) of the Companies Act, 2013, a statement containing salient features of the
financial statements of the Company’s subsidiaries in Form AOC-1 is attached to the financial statements of the Company.
Pursuant to the provisions of Section 136 of the Companies Act, 2013, the standalone and consolidated financial
statements of the Company and separate annual accounts of its subsidiaries are available on the website of the Company
at www.oracle.com/financialservices.
Research and development

Your Company continuously makes significant investments in research and development (R&D) to develop solutions
that the global banking industry needs today and will need tomorrow. Your Company’s dedicated in-house R&D
centers have produced a number of products that are used by banks in more than 150 countries around the world for
running their critical operations. The investment your Company makes in building applications, coupled with access
to Oracle’s technology, provides a unique competitive edge to its offerings.
Fixed deposits
During the financial year 2019-20, the Company has not accepted any fixed deposits within the meaning of
Rule 2(c) of the Companies (Acceptance of Deposits) Rules, 2014, and as such, no amount of principal or interest was
outstanding as of the date of the Balance Sheet.
Corporate governance
The Company has taken appropriate steps and measures to comply with all the corporate governance regulations and
related requirements as envisaged under Regulation 27 of the Listing Regulations. A separate report on Corporate
Governance along with a certificate from Mr. Prashant Diwan, Practicing Company Secretary, with regard to compliance
of conditions of Corporate Governance as stipulated in Regulation 34(3) of the Listing Regulations forms part of this
Annual Report.
A certificate from Mr. Prashant Diwan, Practicing Company Secretary, has also been received stating that none of the
Directors on the Board of the Company have been debarred or disqualified from being appointed or continuing as
Directors of the Company by the SEBI, Ministry of Corporate Affairs (MCA) or any such statutory authority.
Statutory Auditors’ report

There are no qualifications, reservations, adverse remarks or disclaimers in the Statutory Auditors’ report.
Secretarial audit report

In terms of Section 204 of the Companies Act, 2013, and the Rules made thereunder, the Board has appointed
Mr. Prashant Diwan, Practicing Company Secretary, as Secretarial Auditor of the Company for the financial year
2019-20. The Secretarial Audit report is annexed as Annexure 3 to this report. The Secretarial Audit report does not
contain any qualification, reservation or adverse remarks.
Business responsibility report

Business Responsibility Report for the financial year 2019-20 that forms part of this Annual Report has been hosted
on the website of the Company at www.oracle.com/financialservices. The Members, who wish to obtain a copy of the
report, may write to the Company Secretary at the Registered Office of the Company.
11
Employee Stock Option Plan (“ESOP”)
The Members at their Annual General Meeting held on August 14, 2001 approved grant of ESOPs to the employees /
directors of the Company and its subsidiaries up to 7.5% of the issued and paid-up capital of the Company from time
to time. This said limit was enhanced and approved up to 12.5% of the issued and paid-up capital of the Company
from time to time, by the Members at their Annual General Meeting held on August 18, 2011. This extended limit is
an all-inclusive limit applicable to the stock options (“options”) granted in the past and in force and those that will be
granted by the Company under this authorization.
Pursuant to ESOP scheme approved by the Members of the Company on August 14, 2001, the Board of Directors, on
March 4, 2002 approved the 2002 Employees Stock Option Scheme (“Scheme 2002”) for issue of 4,753,600 options
to the employees and directors of the Company and its subsidiaries. According to the Scheme 2002, the Company has
granted 4,548,920 options prior to the Initial Public Offering (IPO) and 619,000 options at various dates after the IPO
(including the grants of options out of options forfeited earlier). On August 25, 2010, the Board of Directors approved
the Employees Stock Option Plan 2010 Scheme (“Scheme 2010”) for issue of 618,000 options to the employees and
directors of the Company and its subsidiaries. According to the Scheme 2010, the Company has granted 638,000
options (including the grants of options out of options forfeited earlier).
Pursuant to ESOP Scheme approved by the Members of the Company in their meeting held on August 18, 2011,
the Board of Directors approved the Employees Stock Option Plan 2011 Scheme (“Scheme 2011”). Accordingly, the
Company has granted 1,950,500 options under the Scheme 2011. Nomination and Remuneration Committee in
their meeting held on August 7, 2014 approved Oracle Financial Services Software Limited Stock Plan 2014 (“OFSS
Stock Plan 2014”). This plan enables issue of deeply discounted options at the face value and referred to as OFSS
Stock Units (“OSUs”) for convenience. Accordingly, the Company granted 178,245 Stock Options and 854,453 OFSS
Stock Units (“OSUs”) under OFSS Stock Plan 2014. The issuance terms of OSUs are the same as for Stock Options,
employees may elect to receive 1 OSU in lieu of 4 awarded Stock Options at their respective exercise price.
As per the Scheme 2002, Scheme 2010 and Scheme 2011, each of 20% of the total options granted will vest on
completion of 12, 24, 36, 48 and 60 months from the date of grant and is subject to continued employment of the
employee or directorship of the director with the Company or its subsidiaries. Options have an exercise period of 10
years from the date of grant. The employee pays the exercise price upon exercise of options.
In respect of the OFSS Stock Plan 2014, each of 25% of the total stock options / OSUs granted will vest on completion
of 12, 24, 36 and 48 months from the date of grant and is subject to continued employment of the employee with the
Company or its subsidiaries. Options / OSUs have an exercise period of 10 years from the date of grant. The employee
pays the exercise price upon exercise of options / OSUs.
All the above mentioned Schemes of the Company are in compliance with SEBI (Share Based Employee Benefits)
Regulations, 2014. Applicable disclosures relating to Employees Stock Option Schemes, pursuant to SEBI (Share Based
Employee Benefits) Regulations, 2014, are placed on the website of the Company at www.oracle.com/financialservices.
The details of the options / OSUs granted under the Scheme 2002, Scheme 2010, Scheme 2011 and OFSS Stock
Plan 2014 to eligible employees / directors from time to time are given below:
Particulars Scheme Scheme Scheme OFSS Stock OFSS Stock Total

2002 2010 2011 Plan 2014 Plan 2014
(Stock Options) (OSUs)
Pricing Formula At the market price as on the date of grant ₹5
Variation of terms of option / OSUs None None None None None
Number of options / OSUs granted 5,167,920 638,000 1,950,500 178,245 854,453 8,789,118
till March 31, 2020
Number of options / OSUs lapsed (620,725) (283,332) (466,830) (35,520) (84,556) (1,490,963)
and forfeited
Number of options / OSUs (4,547,195) (320,833) (1,128,728) (9,037) (308,411) (6,314,204)
exercised
Total number of options in force as – 33,835 354,942 133,688 461,486 983,951
on March 31, 2020

The details of OSUs granted to Directors and Senior Managerial Personnel under OFSS Stock Plan 2014 during the
financial year ended March 31, 2020 are as follows:
Particulars Number of
OSUs
i. Director:
Mr. Chaitanya Kamat 40,000
Mr. Makarand Padalkar 11,250
ii. Senior Managerial Personnel:

Mr. Arvind Gulhati 4,750
Mr. Avadhut Ketkar 1,500
Ms. Bindu Venkatesh 2,200
Mr. Dinakar Kini 275
Mr. Edwin Moses 1,500
Mr. Mahesh Rao 1,250
Mr. Mohamed Yacob 200
Mr. Onkarnath Banerjee 1,000
Mr. Rajaram Vadapandeshwara 800
Mr. Sanjay Bajaj 250
Mr. Surendra Shukla 475
Mr. Vikram Gupta 4,750
Mr. Vinayak Hampihallikar 1,250
Mr. Vivek Jalan 1,200
iii. Any other employee, who receives grant in any one year of options / OSUs amounting to 5% Nil
or more of options / OSUs granted during the year
iv. Identified employees who were granted options / OSUs, during any one year, equal to or Nil
exceeding 1% of the issued capital (excluding outstanding warrants and conversions) of the
Company at the time of grant
v. Diluted Earnings Per Share (EPS) pursuant to the issue of shares on exercise of option ₹ 183.62
calculated in accordance with Indian Accounting Standard (IND AS) 33 ‘Earnings Per Share’
issued by the Institute of Chartered Accountants of India
All OSUs were granted at the face value of the equity shares. The compensation cost arising on account of stock options
and OSUs is calculated using the fair value method. The reported profit is after considering the cost of employee stock
compensation (₹ 432.01 million), using fair value method on stock options / OSUs.
A summary of the activities in the Company’s Scheme 2010 and Scheme 2011 for the year ended March 31, 2020
are as follows:
Particulars Scheme 2010 Scheme 2011
Shares arising Weighted Shares arising Weighted
from Options average from Options average
exercise price exercise price
(₹) (₹)
Outstanding at the beginning of the year 37,065 2,050 382,224 2,924
Granted – – – –
Exercised (3,230) 2,050 (14,082) 2,545
Forfeited – – (13,200) 3,112
Outstanding at the end of the year 33,835 2,050 354,942 2,932
Vested Options 33,835 354,942
Unvested Options – –
Options vested during the year – –
Options forfeited / lapsed during the year – 13,200
13
A summary of the activities in the Company’s OFSS Stock Plan 2014 for the year ended March 31, 2020 are as follows:
Particulars Shares arising Weighted Shares arising Weighted

from OSUs average from Options average
(₹) (₹)
Outstanding at the beginning of the year 417,477 5 137,095 3,537
Granted 142,250 5 − −
Exercised (82,594) 5 (245) 3,241
Forfeited (15,647) 5 (3,162) 3,600
Outstanding at the end of the year 461,486 5 133,688 3,536
Vested OSUs / Options 143,147 109,056
Unvested OSUs / Options 318,339 24,632
Options vested during the year 123,485 23,685
Options forfeited / lapsed during the year 15,647 3,162
The weighted average share price for the year over which stock options / OSUs were exercised was ₹ 3,001. Money
realized by exercise of options / OSUs during the financial year 2019-20 was ₹ 43.66 million. The Company has
recovered perquisite tax on the options / OSUs exercised by the employees during the year. The weighted average fair
value of OSUs granted during the year was ₹ 3,168 calculated as per the Black Scholes valuation model as stated in
29(b) in the notes to accounts of the unconsolidated financials.
The details of Options unvested and Options vested and exercisable as on March 31, 2020 are as follows:
Exercise prices Number of Weighted Weighted

(₹) options / OSUs average exercise average
price (₹) remaining
contractual life
(Years)
Options /OSUs unvested 5 318,339 5 8.3
3,393 12,155 3,393 6.2
3,579 4,300 3,579 7.2
4,158 8,177 4,158 8.2
Options /OSUs vested and exercisable 5 143,147 5 6.3

1,930 50,889 1,930 1.7
2,050 33,835 2,050 0.4
3,077 167,983 3,077 3.5
3,127 136,070 3,127 2.8
3,241 41,033 3,241 5.0
3,393 35,045 3,393 6.2
3,579 4,205 3,579 7.2
3,987 26,050 3,987 5.6
4,158 2,723 4,158 8.2
983,951 1,611 5.5
Employee Stock Purchase Scheme (“ESPS”)

The Company had adopted the ESPS administered through a Trust with the name i-flex Employee Stock Option Trust
(“the Trust”) to provide equity based incentives to key employees of the Company. i-flex Solutions Trustee Company
Limited is the sole Trustee of this Trust.
No allocation of shares to the employees have been made through the Trust since 2005 and all selected employees
under the Trust have exercised their right of purchase of shares prior to March 31, 2014. In this regard, i-flex Solutions
Trustee Company Limited had filed a petition in the Hon’ble Bombay High Court to seek directions for utilization of
the remaining unallocated shares along with the other assets held by the Trust for the benefit of the employees of the
Company. As per the order of the Hon’ble Bombay High Court dated August 1, 2016, the trust funds would be utilized
for the benefit of the employees.

During the year, the Trust sold all the equity shares of the Company and as at March 31, 2020, the Trust did not hold
any equity shares of the Company (March 31, 2019 - 27,160 equity shares).
Human resources
Human Resources are key assets of your Company and your Company invests continuously in imparting latest
technology skills together with a range of soft skills to help them excel in their roles. Your Company has a strong
performance management system together with a formal talent management processes to nurture employee careers,
groom future leaders, and create a high performance workforce.
Your Company’s total employees as at March 31, 2020, were 8,001 (March 31, 2019 - 8,054) including employees
of subsidiaries.
The Company is committed to provide a healthy environment to all its employees and thus does not tolerate any
discrimination and / or harassment in any form. The Company has in place a Prevention of Sexual Harassment
(POSH) policy in line with the requirements of the Sexual Harassment of Women at Workplace (Prevention, Prohibition
and Redressal) Act, 2013. Frequent communication of this policy is done through various programs and at regular
intervals. The Company has setup an Internal Complaints Committees (ICC), both at the registered office and at every
location where it operates in India, which have men and women committee members as per the regulations, are
chaired by senior woman employees and have external women representation.
The details of complaints pertaining to sexual harassment that were filed, disposed of and pending during the financial
year are provided in the Corporate Governance report which is a part of this Annual Report.
Corporate social responsibility

Pursuant to Rule 8 of Companies (Corporate Social Responsibility) Rules, 2014, annual report on the Corporate Social
Responsibility activities for the financial year ended March 31, 2020 is annexed as Annexure 4 to this report.
Internal financial controls

The Board has adopted adequate policies and procedures in terms of Internal Financial Controls commensurate with
the size, scale and complexity of the Company’s operations. Such policies and procedures ensure orderly and efficient
conduct of business, adherence to the Company’s policies, safeguarding of its assets, prevention and detection of
frauds and errors, accuracy and completeness of the accounting records, and timely preparation of reliable financial
information.
The Internal Audit team monitors and evaluates the efficacy and adequacy of internal control system commensurate
with the size of the business operations of the Company, its compliance with risk management system, accounting
procedures and policies at all locations of the Company and its subsidiaries. The Internal Audit team reports to the
Audit Committee.
Directors’ responsibility statement

As required under Section 134(5) of the Companies Act, 2013 (“the Act”), for the financial year ended on
March 31, 2020, the Directors hereby confirm that:
a. in the preparation of the annual accounts, the applicable accounting standards had been followed along with
proper explanation relating to material departures;
b. the directors had selected such accounting policies and applied them consistently and made judgments and
estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company
at the end of the financial year and of the profit of the Company for that period;
c. the directors had taken proper and sufficient care for the maintenance of adequate accounting records in
accordance with the provisions of this Act for safeguarding the assets of the Company and for preventing and
detecting fraud and other irregularities;
d. the directors had prepared the annual accounts on a going concern basis;
e. the directors, had laid down internal financial controls followed by the Company and that such internal financial
controls are adequate and were operating effectively; and
f. the directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that
such systems were adequate and operating effectively.
Auditors
The Members of the Company have appointed M/s. Mukund M. Chitale & Co., Chartered Accountants, (ICAI Firm
Registration No. 106655W), as the Statutory Auditors of the Company till the conclusion of the 33rd Annual General
Meeting to be held in the year 2022.
15
Reporting of frauds by Auditors
During the year under review, neither the Statutory Auditors nor the Secretarial Auditor has reported to the Audit
Committee under Section 143(12) of the Companies Act, 2013 any instances of fraud committed against the
Company by its officers or employees.
Cost records and cost audit

Maintenance of cost records and requirement of cost audit as prescribed under the provisions of Section 148(1) of the
Companies Act, 2013 are not applicable for the business activities carried out by the Company.
Material changes and commitments

There have been no material changes and commitments which affect the financial position of the Company which
have occurred between the end of the financial year to which the financial statements relate and the date of this report.
Significant and material orders

There are no significant and material orders passed by the regulators or courts or tribunals impacting the going
concern status and the Company’s operations in future.
Conservation of energy, technology absorption and foreign exchange earnings and outgo
The particulars as prescribed under sub-section (3)(m) of Section 134 of the Companies Act, 2013, the relevant data
pertaining to conservation of energy, technology absorption and foreign exchange earnings and outgo are furnished
hereunder:
Conservation of energy
The Company strives to conserve energy and use energy efficient computers and illumination systems. The Company
also deploys sophisticated office automation and management equipment which optimizes energy consumption.
During the year, the Company deployed renewable energy to both reduce our CO2 emissions and energy costs
through an Open Access option (via India Energy Exchange) at our Bengaluru office. As part of an initiative to support
Oracle’s global sustainability goal of reducing waste to landfill, a wet waste compost machine has been installed at the
Bengaluru office, the excess manure is used for tree plantation projects.
Technology absorption
The Company regularly strives to utilize newer technologies with a view to conserve the energy and create an
environmentally friendly work environment. The initiatives taken by the Company are summarized below:
Network: The Company continues to invest in upgrades and modernization of the networks thereby increase uptime
of the network infrastructure, increase capacity and enable greater collaboration. Network infrastructure is being
migrated to the next generation cloud platform and network tooling, processes are being made seamless between
the applications and the cloud platforms thereby enabling unified operational process, while securing the network
infrastructure, to provide a secure remote computing environment for our employees and customers.
Cloud deployment: All corporate applications are hosted on the Oracle next generation cloud. This move significantly
reduces infrastructure costs as well as reduces space and power utilization across the globe.
Business Resiliency: Your Company has successfully implemented disaster recovery initiatives for critical infrastructure
services. This was been adequately tested during this pandemic crisis and minor deficiencies have been mitigated and
the plan has been made more efficient and effective.
Virtual presence: Your Company has made significant investments in providing a near virtual working environment
for its employees through multiple collaboration tools. Multifunctional and multiple methods of collaboration across
geographies, has enhanced business operations. This enhances communication across the globe, minimizing travel,
increasing efficiencies from a support perspective as well by making self-service operations easier and effective.
Conference room facilities have also been enhanced and standardized across the globe to ensure smooth and
seamless operations from any Oracle location.
All these initiatives would provide a more secure and efficient operating environment with the utilization of innovative
technology.

Foreign exchange earnings and outgo:
(Amounts in ₹ million)
Foreign exchange earnings 31,932.57
Foreign exchange outgo (including capital goods and other expenditure) 2,074.39
Activities relating to exports; initiatives taken to increase exports; development of new export markets for products
and services; and export plans:
Your Company has established an extensive global presence across leading markets through its sales and marketing
network. The Company will continue to focus on tapping various potential markets available globally. Experienced
sales and marketing specialists focus on building strong international business presence to develop new export
markets for your Company.
Prospects
Never before has technology been so critical to the financial services industry. Increased competition from FinTechs/
tech giants, consumer demand for instant, digital delivery of products and services, fresh onslaught of financial crime
and fraud, a slew of new regulations are all pressing financial institutions to embrace new technologies and find
winning strategies.
Digital banking transformation, driven primarily by social, mobile and analytics, is fast becoming table stakes. It can no
longer guarantee growth and market leadership in the decade ahead. As customer expectations, business dynamics
and regulations continue to evolve, banks will need to invest in new capabilities to drive the next wave of transformation.
This next wave is essential to innovate and differentiate in new ways and do so profitably.
Several new technologies can offer banks the ability to go beyond ‘conventional digital’ and leverage truly next
generation capabilities. In the next decade, banks and financial services firms will need to harness emerging
technologies such as distributed ledgers, Internet of Things (“IoT”), APIs, Artificial Intelligence, machine learning,
Robotic Process Automations to transform customer and business value and accelerate profitable growth. As opposed
to just focusing on the technologies per se, financial institutions must leverage them as a means to an end, i.e. to equip
and enable staff and business lines to transform products, services, engagement and experiences at unparalleled
scale and scope. The challenge for financial institutions lies in their ability to take advantage of these technologies and
find new ways to collaborate, exchange and combine data and services to generate never-seen-before innovation,
efficiencies, and value.
Technology plays a vital role in helping financial institutions reduce risks, and drive process efficiencies in regulatory
compliance and fraud detection. Financial institutions are increasingly turning towards advanced Financial Crime
and Compliance Management approaches that leverage graph analytics, machine learning and other AI techniques
to improve detection, drive down the incidence of false positives, and thereby reduce associated costs. The ability
to continually discover emerging risks and new criminal patterns, coupled with the capacity to rapidly operationalize
newly developed models into production, is a necessary requirement for modern financial crime platforms.
Your Company has made significant investments in leveraging new technologies to sharpen our products and services
and ensure they are future ready. Our solutions come embedded with natural language processing and machine
learning capabilities for elevated customer experience and intelligent contextual response automation. We have
introduced Chatbots that banks can use to scale customer interactions by offering automated engagement to millions
of customers at the same time. We offer augmented reality, IoT, API and biometric capabilities and a micorservices
based architecture and componentized solution portfolio designed for cloud and on premise. With our data-driven
solutions, financial institutions can get the in-depth insights make better business-critical decisions. Your Company’s
commitment to innovation is a driving factor that keeps it in the forefront of the information technology industry.
Statement on compliance of applicable Secretarial Standards

The Company complies with all applicable mandatory provisions of Secretarial Standards issued by the Institute of
Company Secretaries of India.
17
Employee particulars
The information required under Section 197 of the Companies Act, 2013 read with Rule 5(1) of the Companies
(Appointment and Remuneration of Managerial Personnel) Amendment Rules, 2016 is given below:
For statistically relevant computation of median value of employee remuneration, employees who have served the
entire 12 months in the corresponding fiscal year were considered. The expression “median” means the numerical
value separating the higher half of a population from the lower half and the median of a finite list of numbers is found
by arranging all the observations from lowest value to highest value and picking the middle one; and if there is an
even number of observations, the median is the average of the two middle values. The remuneration used for the
analysis in this section includes the details of employees and only of those Directors to whom the remuneration has
been paid by the Company and excludes remuneration of the employees of overseas branches, and the (perquisite)
value of the difference between the fair market value and the exercise price on the date of exercise of options, to make
the comparisons relevant.
i. Ratio of the remuneration of each director to the median remuneration of the employees of the Company
for the financial year:
Name of the Director Ratio to median
remuneration
Non-Executive, Independent Directors
Mr. S Venkatachalam 3
Mr. Richard Jackson 3
Mr. Sridhar Srinivasan 2
Ms. Jane Murphy 3
Executive Director
Mr. Chaitanya Kamat 32
Mr. Makarand Padalkar* Not Applicable
*Appointed as Whole-time Director and Chief Financial Officer effective from May 9, 2019.
ii. The percentage increase in remuneration of each director, chief executive officer, chief financial officer
and company secretary in the financial year:
Name and Title Percentage increase / (decrease)

of remuneration in FY 2020
as compared to FY 2019
Non-Executive, Independent Directors*
Mr. S Venkatachalam 9%
Mr. Richard Jackson 30%
Mr. Sridhar Srinivasan 26%
Ms. Jane Murphy Not Applicable
Managing Director and Chief Executive Officer#
Mr. Chaitanya Kamat 32%
Whole-time Director and Chief Financial Officer @
Mr. Makarand Padalkar Not Applicable

Company Secretary and Compliance Officer #
Mr. Onkarnath Banerjee 8%

*The remuneration structure of the Non-Executive, Independent Directors was revised in February 2019.
#
Excludes the (perquisite) value towards difference between the fair market value on the date of exercise of options and the
exercise price.
@
Appointed as Whole-time Director and Chief Financial Officer effective from May 9, 2019.
iii. The percentage increase in the Median Remuneration of Employees in fiscal 2020, as compared to fiscal
2019:
14%.
iv. The number of permanent employees on the rolls of the Company:
6,474 as on March 31, 2020.

v. Average percentile increase already made in the salaries of employees other than the managerial personnel
in the last financial year and its comparison with the percentile increase in the managerial remuneration
and justification thereof and point out if there are any exceptional circumstances for increase in the
managerial remuneration:
During the financial year 2019-20, the average remuneration of employees other than the key managerial
personnel increased by 10% over the previous year. During the same period, average remuneration of the key
managerial personnel increased by 24%.
vi. Affirmation that the remuneration is as per the remuneration policy of the Company:
The remuneration is as per the remuneration policy of the Company.
The statement containing particulars of employees as required under Section 197(12) of the Companies Act, 2013
read with Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Amendment Rules,
2016, is provided in a separate annexure forming part of this report. Further, the report and the accounts are being
sent to the Members excluding the aforesaid annexure. In terms of Section 136 of the Companies Act, 2013, the
said annexure is open for inspection and any Member interested in obtaining a copy of the same may write to the
Company Secretary.
Response to COVID-19
During March 2020, as the COVID-19 pandemic developed rapidly into a global crisis, the Company immediately
switched to a 100% work from home for all employees to ensure their well-being and safety. We are conducting
business with some modification to employee travel and employee work locations, including but not limited to, work
from home. Our robust infrastructure, processes, and most importantly our people, ensured that the Company
continues to deliver the commitments with minimal disruptions caused by the global COVID-19 pandemic. It is,
however, not clear what the potential long-term effects of any such alterations or modifications may have on our
business, including the effects on our customers and prospects.
The COVID-19 pandemic is also resulting in a series of government interventions around the globe to help alleviate
the economic distress, and our consulting and support teams have seamlessly helped our customers to meet these
challenges. The agile capabilities of our products were leveraged by the customers to respond to a dynamically
evolving situation.
The Company’s processes enable us to deliver our support, services and software, anytime anywhere and from any
location.
While we experienced, and may continue to experience, some delays in new deal signings, especially from regions with
‘in-person’ cultures for Board Meetings and financial institutions conserving budgets in the face of cost pressures, our
value proposition remains very relevant, and even more so when the economic recovery begins. The full effects of the
pandemic on the global economy and our business are currently unknown and we are watchful of the developments.
Being conscious of the social responsibility, the Company has directed its FY21 CSR efforts to projects aimed at
reducing distress due to COVID-19. In addition, the Company also recently contributed an amount of ₹12.5 Crores in
the Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES Fund), towards COVID-19
relief.
Acknowledgements
The Directors place on record their appreciation for the excellent contributions made by the employees of the Company
through their commitment, co-operation and diligence. The Directors gratefully acknowledge the continued support
received by the Company from its stakeholders, customers, members, vendors, bankers and regulatory authorities
during the year. The Directors also wish to thank the Government of India and the State Governments in the jurisdictions
it operates and their various agencies, and departments.
For and on behalf of the Board
S Venkatachalam
Chairperson
DIN: 00257819
June 24, 2020
19
Annexure 1
Form MGT-9
EXTRACT OF ANNUAL RETURN
for the financial year ended on March 31, 2020
of
ORACLE FINANCIAL SERVICES SOFTWARE LIMITED
[Pursuant to Section 92(3) of the Companies Act, 2013 and rule 12(1) of the Companies
(Management and Administration) Rules, 2014]
I. Registration and other details:
I. CIN L72200MH1989PLC053666
II. Registration Date September 27, 1989
III. Name of the Company Oracle Financial Services Software Limited
IV. Category / Sub-category of the Company Limited by shares / Indian Non-Government Company
Company
V. Address of the Registered Office and Oracle Park

Contact Details Off Western Express Highway, Goregaon (East)
Tel. no. +91 22 6718 3000
Fax no. +91 22 6718 3001
Email: investors-vp-ofss_in_grp@oracle.com
Website: www.oracle.com/financialservices
VI. Whether Listed Company - Yes / No Yes
VII. Name, Address and Contact details of Link Intime India Private Limited
Registrar & Transfer Agents (RTA), if C 101, 247 Park
any L B S Marg, Vikhroli (West)
Mumbai 400083
Tel. no. +91 22 4918 6000
Fax no. +91 22 4918 6060
Email: rnt.helpdesk@linkintime.co.in
II. Principal Business Activities of the Company

All the business activities contributing 10% or more of the total turnover of the company shall be stated:
Sr. Name and Description of main products / services NIC Code of the % to total turnover of the
No. product / service company
1 The Company is engaged in developing, selling and 62011 100
marketing computer software, computer systems; providing
consultancy and other information technology related
activities

III. Particulars of Holding, Subsidiary and Associate Companies
Sr. Name and Address of the Company CIN / GLN Holding/ % of Applicable
No. Subsidiary/ shares Section
Associate held
1 Oracle Global (Mauritius) Limited Not Applicable Holding 73.42 2(46)
C/o Citco (Mauritius) Limited
4th Floor, 1 Cybercity
Ebene Mauritius
2 Oracle Financial Services Software B.V. Not Applicable Subsidiary 100.00 2(87)
Barbara Strozzilaan 201
NL-1083 HN Amsterdam
The Netherlands
3 Oracle Financial Services Software SA Not Applicable Subsidiary 100.00 2(87)
265 Mesogheion Avenue
Neo Psychiko, 15451, Athens, Greece
4 Oracle Financial Services Software Pte. Ltd. Not Applicable Subsidiary 100.00 2(87)
1 Fusionopolis Place, #12-10 Galaxies
Singapore 138522
5 Oracle Financial Services Consulting Pte. Ltd. Not Applicable Subsidiary 100.00 2(87)
1 Fusionopolis Place, #12-10 Galaxies
Singapore 138522
6 Oracle Financial Services Software America, Inc. Not Applicable Subsidiary 100.00 2(87)
Edison, NJ 08837 USA
7 Oracle Financial Services Software, Inc. Not Applicable Subsidiary 100.00 2(87)
8 Mantas Inc. Not Applicable Subsidiary 100.00 2(87)
9 Sotas Inc. Not Applicable Subsidiary 100.00 2(87)
10 Mantas India Private Limited U72900DL1999PTC099923 Subsidiary 100.00 2(87)
11 Oracle (OFSS) ASP Private Limited U72900MH2001PTC131264 Subsidiary 100.00 2(87)
Maharashtra, India
12 Oracle (OFSS) Processing Services Limited U72900MH2005PLC151334 Subsidiary 100.00 2(87)
Maharashtra, India
13 ISP Internet Mauritius Company Not Applicable Subsidiary 100.00 2(87)
C/o IQEQ Corporate Services (Mauritius)
Limited
33 Edith Cavell Street
Port Louis 11324, Mauritius
14 Oracle (OFSS) BPO Services Inc. Not Applicable Subsidiary 100.00 2(87)
15 Oracle (OFSS) BPO Services Limited U72900DL2002PLC180572 Subsidiary 100.00 2(87)
21
Sr. Name and Address of the Company CIN / GLN Holding/ % of Applicable
No. Subsidiary/ shares Section
Associate held
16 Oracle Financial Services Software Not Applicable Subsidiary 100.00 2(87)
Chile Limitada
Av. Vitacura 2939
Edificio Millenium - 14th Floor
Las Condes, 7550011 Santiago, Chile
17 Oracle Financial Services Software Not Applicable Subsidiary 100.00 2(87)
(Shanghai) Limited
Unit 806, Henderson Metropolitan
Building 155, Tianjin Road, Shanghai
200001 People’s Republic of China
IV. Shareholding Pattern (Equity share capital breakup as percentage of Total Equity):
(i) Category-wise Shareholding:
Category Category of Shareholders No. of Shares held at the beginning of No. of Shares held at the end of %
Code the year as on April 1, 2019 the year as on March 31, 2020 Change
Demat Physical Total % of Demat Physical Total % of during
Total Total the year
Shares Shares
I II III IV V VI VII VIII IX X XI
(A) Promoter and Promoter Group
(1) Indian
(a) Individual / Hindu – − − − − − − − −
Undivided Family
(b) Central Government − − − − − − − − −
(c) State Government(s) − − − − − − − − −
(d) Bodies Corporate − − − − − − − − −
(e) Banks / Financial − − − − − − − − −
Institutions
(f) Any Other − − − − − − − − −
Sub-total (A)(1) − − − − − − − − −
(2) Foreign
(a) NRIs - Individuals − − − − − − − − −
(b) Other - Individuals − − − − − − − − −
(c) Bodies Corporate 63051197 − 63051197 73.50 63051197 − 63051197 73.42 (0.08)
(d) Banks / Financial − − − − − − − − −
Institutions
(e) Any Other − − − − − − − − −
Sub-total (A)(2) 63051197 − 63051197 73.50 63051197 − 63051197 73.42 (0.08)
Total shareholding of Promoter 63051197 − 63051197 73.50 63051197 − 63051197 73.42 (0.08)
(A)=(A)(1)+(A)(2)

Shares Shares
(B) Public Shareholding
(1) Institutions
(a) Mutual Funds / UTI 2830237 − 2830237 3.30 2991864 − 2991864 3.48 0.18
(b) Banks / Financial 1829047 − 1829047 2.13 2060608 − 2060608 2.40 0.27
Institutions
(c) Venture Capital − − − − − − − − −
Funds
(d) Central 4000 − 4000 0.00 4000 − 4000 0.00 0.00
Government / State
Government(s)
(e) Insurance − − − − 333449 − 333449 0.40 0.40
Companies
(f) Foreign Portfolio 11852757 − 11852757 13.82 11568661 − 11568661 13.47 (0.35)
Investor
(g) Foreign Venture − − − − − − − − −
Capital Funds
(h) Alternate Investment 1300 − 1300 0.00 1800 − 1800 0.00 0.00
Funds
(i) Others
Foreign Bank 17493 − 17493 0.02 − − − − (0.02)
Sub-total (B)(1) 16534834 − 16534834 19.28 16960382 − 16960382 19.75 0.47
(2) Non-Institutions
(a) Bodies Corporate 552943 − 552943 0.64 216149 − 216149 0.25 (0.39)
(b) Individuals
i. Individual 3301233 178965 3480198 4.06 3395989 159765 3555754 4.14 0.08
shareholders
holding nominal
share capital up to
₹ 1 lakh
ii. Individual 948374 56000 1004374 1.17 926253 56000 982253 1.15 (0.02)
shareholders
holding nominal
share capital in
excess of ₹ 1 lakh
(c) NBFCs registered 55902 − 55902 0.07 30 − 30 0.00 (0.07)
with RBI
(d) Others
i. Non-Resident 177624 2062 179686 0.21 177843 2062 179905 0.21 0.00
Indians (Repatriate)
ii. Non-Resident 732106 199 732305 0.85 718518 199 718717 0.84 (0.01)
Indians
(Non-Repatriate)
iii. Foreign Nationals 1541 − 1541 0.00 3035 − 3035 0.00 0.00
iv. Clearing Member 20360 − 20360 0.02 23948 − 23948 0.03 0.01
v. Directors / Relatives 32500 − 32500 0.04 88090 − 88090 0.10 0.06
vi. Hindu Undivided 44075 − 44075 0.05 52185 − 52185 0.06 0.01
Family
vii. Market Maker 596 − 596 0.00 2 − 2 0.00 0.00
viii. Trusts 42315 − 42315 0.05 1330 − 1330 0.00 (0.05)
ix. IEPF 46321 − 46321 0.05 46321 − 46321 0.05 0.00
Sub-total (B)(2) 5955890 237226 6193116 7.22 5649693 218026 5867719 6.83 (0.39)
23
Shares Shares
Total Public Shareholding 22490724 237226 22727950 26.50 22610075 218026 22828101 26.58 0.08
(B)=(B)(1)+(B)(2)
(C) Shares held by Custodian − − − − − − − − −
for GDRs & ADRs
Grand Total (A+B+C) 85541921 237226 85779147 100.00 85661272 218026 85879298 100.00 0.00
(ii) Shareholding of Promoters:
Name of Shareholders Shareholding at the beginning of the Shareholding at the end of the year as %
year as on April 1, 2019 on March 31, 2020 change
No. of % of total % of shares No. of % of total % of shares in share
Shares shares pledged/ Shares shares pledged/ holding
of the encumbered of the encumbered during
Company to total Company to total the
shares shares year
Oracle Global (Mauritius) 63051197 73.50 − 63051197 73.42 − (0.08)

Limited
Total 63051197 73.50 − 63051197 73.42 − (0.08)
(iii) Change in Promoters’ Shareholding:
Name of the Shareholders Shareholding at the beginning Cumulative shareholding

of the year as on April 1, 2019 during the year
No. of % of total shares No. of % of total shares
Shares of the Company Shares of the Company
Oracle Global (Mauritius) Limited
At the beginning of the year 63051197 73.50 63051197 73.50
Date wise Increase / Decrease in Promoters − − − −
Shareholding during the Year
At the end of the year 63051197 73.42
The decrease in the percentage of promoters’ shareholding from 73.50 % to 73.42 % is due to allotment of shares on
the exercise of ESOPs by eligible employees of the Company.
(iv) Shareholding Pattern of top ten Shareholders (other than Directors, Promoters and Holders of GDRs and ADRs):
Sr. Name of the Shareholders Shareholding at the beginning Cumulative shareholding

No. of the year as on April 1, 2019 during the year*
1 Wessex (Mauritius) Limited
Transactions - purchase / (sale) from − − − −
April 1, 2019 to March 31, 2020
2 Life Insurance Corporation of India
Transactions - purchase / (sale) from 4274 0.00 1818626 2.12
April 1, 2019 to March 31, 2020

Sr. Name of the Shareholders Shareholding at the beginning Cumulative shareholding
No. of the year as on April 1, 2019 during the year*
3 Copthall Mauritius Investment Limited
Transactions - purchase / (sale) from (13088) (0.02) 1620000 1.88
April 1, 2019 to March 31, 2020
4 Goldman Sachs (Singapore) PTE
Transactions - purchase / (sale) from (44241) (0.05) 1353612 1.58
April 1, 2019 to March 31, 2020
5 Sussex (Mauritius) Limited
April 1, 2019 to March 31, 2020
6 Burgundy Emerging Markets Fund
April 1, 2019 to March 31, 2020
7 Citigroup Global Markets Mauritius Private
Limited
April 1, 2019 to March 31, 2020
8 BBH Burgundy Emerging Markets Master
Fund, LP
April 1, 2019 to March 31, 2020
9 HDFC Trustee Company Limited - HDFC Tax
Saverfund
April 1, 2019 to March 31, 2020
10 Vanguard Total International Stock Index Fund
April 1, 2019 to March 31, 2020
*The shares of the Company are traded on daily basis and hence the date wise increase / decrease in shareholding is not indicated.
25
(v) Shareholding of Directors and Key Managerial Personnel:
Sr. Name of the Director/ Shareholding at the beginning Cumulative shareholding

No. Key Managerial Personnel (KMP) of the year as on April 1, 2019 during the year
1 Mr. S Venkatachalam
Independent Director
April 1, 2019 to March 31, 2020
2 Mr. Chaitanya Kamat

Managing Director and Chief Executive Officer
April 1, 2019 to March 31, 2020
3 Mr. Makarand Padalkar

Whole-time Director and Chief Financial Officer
ESOP exercised on March 24, 2020 10000 0.01 55590 0.06
4 Mr. Onkarnath Banerjee

Company Secretary and Compliance Officer
ESOP exercised on August 21, 2019 155 0.00 158 0.00
Sale on August 28, 2019 (158) 0.00 0 0.00
ESOP exercised on October 23, 2019 105 0.00 105 0.00
ESOP exercised on November 20, 2019 115 0.00 220 0.00
ESOP exercised on December 17, 2019 94 0.00 314 0.00
Sale on December 19, 2019 (100) 0.00 214 0.00
Sale on December 20, 2019 (120) 0.00 94 0.00
Sale on December 26, 2019 (68) 0.00 26 0.00
The following Directors did not held any shares during the Financial Year 2019-20:
Mr. Harinderjit Singh - Director Mr. Richard Jackson - Independent Director

Ms. Jane Murphy - Independent Director Mr. Sridhar Srinivasan - Independent Director
Ms. Kimberly Woolley - Director Mr. Vincent Secondo Grelli - Director
Ms. Maria Smith* - Director Mr. Yong Meng Kau - Director
*Resigned on May 9, 2019
V. Indebtness:
The Company has not availed any loan during the year and is a debt-free company.

VI. Remuneration of Directors and Key Managerial Personnel:
A Remuneration to Managing Director, Whole-time Directors and / or Manager:
Sr. Particulars of Remuneration Name of Managing Director/ Total Amount
No. Whole-time Director/Manager
Mr. Chaitanya Mr. Makarand
Kamat, Padalkar,
Managing Whole-time
Director & Director &
Chief Chief Financial
Executive Officer
Officer
1 Gross Salary
(a) Salary as per provisions contained in Section 17(1) of 43.24 11.28 54.52
the Income-tax Act, 1961
(b) Value of perquisites u/s 17(2) Income-tax Act, 1961 0.68 21.19 21.87
(c) Profits in lieu of salary under Section 17(3) Income-tax − − −
Act, 1961
2 Stock Option (OSU) (Number) 40000 11250 51250
3 Sweat Equity − − −
4 Commission − − −
as a % of Profit
others, specify
5 Others, please specify − − −
Total (A) 43.92 32.47 76.39
Ceiling as per the Act (5% of the profits calculated under 1018.61
Section 198 of the Companies Act, 2013)
B Remuneration to other Directors:

Fee for attending Commission Others Total
Board/
Committee
Meetings
1 Non-Executive, Independent Directors
S Venkatachalam − 4.40 − 4.40
Richard Jackson − 4.20 − 4.20
Sridhar Srinivasan − 3.20 − 3.20
Jane Murphy − 3.85 − 3.85
Total (1) − 15.65 − 15.65
2 Other Non-Executive, Non-Independent Directors #
− − − −
Total (2) − − − −
Total (B) = (1+2) − 15.65 − 15.65
Total Managerial Remuneration (A+B) − − − 92.04
Overall Ceiling as per the Act (11% of the profits 2240.95
calculated under Section 198 of the Companies Act,
2013)
No payment is made towards fee / commission to the Non-Executive, Non-Independent Directors of the Company.
#
27
C Remuneration to Key Managerial Personnel other the MD/ Manager / WTD:
Sr. Particulars of Remuneration Key Total Amount
No. Managerial
Personnel
Company
Secretary
1 Gross Salary
(a) Salary as per provisions contained in Section 17(1) of the Income-tax 6.57 6.57
Act, 1961
(b) Value of perquisites u/s 17(2) Income-tax Act, 1961 1.52 1.52
(c) Profits in lieu of salary under Section 17(3) Income-tax Act, 1961 − −
2 Stock Option (OSU) (Number) 1000 1000
3 Sweat Equity − −
4 Commission − −
- as a % of Profit
- others, specify
5 Others, please specify − −
Total 8.09 8.09
VII. Penalties / Punishment / Compounding of Offences:

There were no penalties / punishments / compounding of offences under any section of Companies Act, 2013.

Annexure 2
Form No. AOC - 2
Particulars of contracts / arrangements made with related parties

[Pursuant to Clause (h) of Sub-section (3) of Section 134 of the Companies Act, 2013, and Rule 8(2) of the Companies
(Accounts) Rules, 2014]
This Form pertains to the disclosure of particulars of contracts / arrangements entered into by the Company with
related parties referred to in Sub-section (1) of Section 188 of the Companies Act, 2013 (“the Act”) including certain
arm's length transactions under third proviso thereto.
1. Details of contracts or arrangements or transactions not at arm's length basis:
There were no contracts or arrangements or transactions entered into during the year ended March 31, 2020,
which were not at arm's length basis.
2. Details of material contracts or arrangements or transactions at arm's length basis:
The disclosures on material transactions are based on the threshold of 10% of consolidated turnover and exclude
the transactions with wholly owned subsidiaries which are exempt under section 188(1) of the Act:
a. Name(s) of the related party and nature of relationship: Not applicable

b. Nature of contracts / arrangements / transactions: Not applicable
c. Duration of contracts / arrangements / transactions: Not applicable
d. Salient terms of the contracts or arrangements or transactions Not applicable
including the value, if any:
e. Date(s) of approval by the Board, if any: Not applicable
f. Amount paid as advances, if any: None
For and on behalf of the Board of Directors of

S Venkatachalam
Mumbai Chairperson
June 24, 2020 DIN: 00257819
29
Annexure 3
Secretarial audit report
Form No. MR-3
FOR THE FINANCIAL YEAR ENDED 31ST MARCH, 2020
[Pursuant to section 204 (1) of the Companies Act, 2013 and Rule No. 9 of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014]
To
The Members
Goregaon (East), Mumbai - 400 063
I have conducted the Secretarial Audit of the compliance of applicable statutory provisions and the adherence to
good corporate practices by Oracle Financial Services Software Limited having CIN: L72200MH1989PLC053666
(hereinafter called “the Company”). Secretarial Audit was conducted in a manner that provided me a reasonable basis
for evaluating the corporate conducts/statutory compliances and expressing my opinion thereon.
Based on my verification of the Company’s books, papers, minute books, forms and returns filed and other records
maintained by the Company and also the information provided by the Company, its officers, agents and authorized
representatives during the conduct of secretarial audit, I hereby report that in my opinion, the Company has, during the
audit period covering the financial year ended on 31st March, 2020 generally complied with the statutory provisions
listed hereunder and also that the Company has proper Board-processes and compliance mechanism in place to the
extent, in the manner and subject to the reporting made hereinafter:
I have examined the books, papers, minute books, forms and returns filed and other records maintained by the
Company for the financial year ended 31st March, 2020 according to the provisions of:
(i) The Companies Act, 2013 (the Act) and the rules made thereunder;
(ii) The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and the rules made thereunder;
(iii) The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder;
(iv) Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder to the extent of
Foreign Direct Investment and Overseas Direct Investment;
(v) The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act,
1992 (‘SEBI Act’):-
(a) The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations,
2011;
(b) The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015;
(c) The Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014; and
(d) The Securities and Exchange Board of India (Registrar to an Issue and Share Transfer Agents) Regulations,
1993 regarding the Companies Act and dealing with client;
(vi) Software Technology Parks of India rules and regulations.
As per the representations made by the management and relied upon by me, during the period under review,
provisions of the following regulations were not applicable to the Company:
(i) Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder to the extent of
External Commercial Borrowings;
(ii) The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act,
1992 (‘SEBI Act’):-
(a) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations,
2018;
(b) The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008;

(c) The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009;
(d) The Securities and Exchange Board of India (Issue and Listing of Non-Convertible and Redeemable
Preference Shares) Regulations, 2013; and
(e) The Securities and Exchange Board of India (Buyback of Securities) Regulations, 2018.
I have also examined compliance with the applicable clauses of the following:
(i) Secretarial Standards 1 & 2 issued by the Institute of Company Secretaries of India under the Companies Act,
2013.
(ii) The Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations,
2015.
During the period under review the Company has complied with the provisions of the Act, Rules, Regulations,
Guidelines, Standards, etc. to the extent applicable.
I further report that:
The Board of Directors of the Company is duly constituted with proper balance of Executive Directors, Non-Executive
Directors and Independent Directors. The changes in the composition of the Board of Directors that took place during
the period under review were carried out in compliance with the provisions of the Act.
Adequate notice is given to all directors to schedule the Board Meetings, agenda and detailed notes on agenda were
generally sent at least seven days in advance and a system exists for seeking and obtaining further information and
clarifications on the agenda items before the meeting and for meaningful participation at the meeting.
Majority decision is carried through and as informed, there were no dissenting members’ views and hence not
recorded as part of the minutes.
I further report that as per the explanations given to me in the representations made by the management and relied
upon by me there are adequate systems and processes in the Company commensurate with the size and operations
of the Company to monitor and ensure compliance with applicable laws, rules, regulations and guidelines.
As per the explanations given to me in the representations made by the management and relied upon by me, I further
report that, during the audit period, except for the issue and allotment of equity shares to the employees of the
Company under Employee Stock Option Plan (“ESOP”), there were no other specific events / actions in pursuance of
the above referred laws, rules, regulations, guidelines, etc., having a major bearing on the Company's affairs.
CS Prashant Diwan
Practicing Company Secretary
FCS: 1403 CP: 1979
PR: 530/2017
UDIN: F001403B000377341
Date: June 24, 2020

Place: Mumbai
This report is to be read with our letter of even date which is annexed as Annexure A and forms an integral part of
this report.
31
Annexure A
To
The Members
Goregaon (East), Mumbai - 400 063
My report of even date is to be read along with this letter.
1. Maintenance of secretarial record is the responsibility of the management of the company. My responsibility is
to express an opinion on these secretarial records based on my audit.
2. I have followed the audit practices and processes as were appropriate to obtain reasonable assurance about
the correctness of the contents of Secretarial records. The verification was done on test basis to ensure that
correct facts are reflected in secretarial records. I believe that the processes and practices, I followed provide a
reasonable basis for my opinion.
3. I have not verified the correctness and appropriateness of financial records and books of Accounts of the
company.
4. Where ever required, I have obtained the Management representation about the compliance of laws, rules and
regulations and happening of events etc.
5. The compliance of the provisions of Corporate, Specific and other applicable laws, rules, regulations, standards
is the responsibility of management. My examination was limited to the verification of procedures on test basis.
6. The Secretarial Audit report is neither an assurance as to the future viability of the company nor of the efficacy
or effectiveness with which the management has conducted the affairs of the company.
7. I have carried out the verification of part of the records through digital mode as well as relied upon the
Management representation made by the Company due to prevailing conditions of COVID‐19 in the country.
CS Prashant Diwan
FCS: 1403 CP: 1979
PR: 530/2017
UDIN: F001403B000377341
Date: June 24, 2020

Place: Mumbai

Annexure 4
Annual Report on Corporate Social Responsibility Activities
For Financial Year ended March 31, 2020
Pursuant to Section 135 of the Companies Act, 2013 read with Rule 8 of Companies (Corporate Social Responsibility)
Rules, 2014.
1. A brief outline of the company’s CSR policy, including overview of projects or programs proposed to be undertaken
and a reference to the web-link to the CSR policy and projects or programs.
The policy governing Corporate Social Responsibility (“CSR”) initiatives of Oracle Financial Services Software
Limited (“the Company” or “Oracle”) is in line with the regulations specified in section 135 and schedule VII of
the Companies Act, 2013 (“the Act”). The policy is available at http://www.oracle.com/us/industries/financial-
services/ofss-social-responsibility-2437852.pdf.
The Company is committed to using its resources to advance education, protect the environment, and strengthen
communities. Through a combination of grants, sponsorships, and volunteer support, Oracle works to improve
the quality of life in communities where it does business. In addition, our employees contribute to social causes
in their areas of interest through Oracle Volunteering projects.
Advancing Education
Oracle helps nonprofit organizations increase access to digital learning tools and awaken and deepen students'
interest in science, technology, engineering, art, and mathematics (STEAM). The Company’s grantees in India
are:
- Championing literacy for all
- Empowering educators through professional development
- Creating an inclusive society for people with disabilities
- Promoting digital skills
- Preparing young people for successful careers
Protecting the Environment
Oracle supports nonprofit organizations working to protect our planet and the life it sustains. Our grantees in
India are:
- Saving endangered species, including Asiatic elephants and wild buffaloes
- Advancing environmental education
- Improving access to water resources
- Growing more sustainable livelihoods in agriculture
Strengthening Communities
The Company also supports nonprofit organizations that provide vital health and human services and strengthen
the infrastructure that supports a healthy society. Oracle’s grantees in India are:
- Increasing access to quality healthcare
- Fighting poverty and malnutrition
- Empowering women and girls
- Promoting gender equity
- Driving social change
The details of the above initiatives are available at www.oracle.com/a/ocom/docs/corporate/citizenship/ccr-

india-fy19-20-financial-services-software.pdf.
The Company does not make contributions to any political party or its affiliations.
2. Composition of the CSR Committee:
The CSR Committee of the Company comprises of the following Members:

Mr. Harinderjit Singh Chairperson of the Committee
Mr. S Venkatachalam Member
Mr. Chaitanya Kamat Member
33
3. Average net profit of the Company for last three financial years:
The average net profit of the Company as per Rule 2(c)(f) of the Companies (Corporate Social Responsibility)
Rules, 2014: ₹ 17,868,252,376.
4. Prescribed CSR Expenditure (two percent of the amount as in item 3 above): ₹ 357,365,048
5. Details of CSR spent during the financial year:
a) Total amount spent during the financial year: ₹ 357,683,036
b) Amount unspent: Nil
c) Manner in which the amount (in Rupees) spent during the financial year:
During the year ended March 2020, Oracle spent the CSR funds across 101 programs / projects through
various NGOs and other organizations in three areas of its focus, namely, Education, Environment and
Community. The particulars are given below:
Sr. Particulars Focus: Education Focus: Focus: Total

No. Environment Community
1 CSR project or activity 40 projects / programs for 16 projects 45 projects / 101
identified. advancing education and / programs programs for projects/
employment enhancing for protecting strengthening programs
vocation skills, especially environment and communities, through
among children, women, wildlife, promoting eradicating 101 NGO
elderly & differently abled agro-forestry, hunger, poverty partners
persons and empowering conservation of and malnutrition,
women natural resources promoting
and maintaining preventive
quality of soil, air health care and
and water. sanitation and
making available
safe drinking
water.
2 Sector in which the Promoting Education & Promoting Rural

project is covered Gender Equality Environment development
Sustainability and eradicating
poverty
3 Projects or programs
(1) Local area or other Projects are implemented across several districts in multiple states (Andhra Pradesh,
(2) Specify the State Assam, Bihar, Chhattisgarh, Gujarat, Haryana, Himachal Pradesh, Jharkhand,
and District where Karnataka, Madhya Pradesh, Maharashtra, Nagaland, Odisha, Punjab, Rajasthan,
projects or Programs Sikkim, Tamil Nadu, Telangana, Uttar Pradesh, Uttarakhand and West Bengal) and 2
were undertaken Union territories (New Delhi, Puducherry), and some projects are Pan India
4 Amount outlay (Budget) 141,155,161 63,043,074 153,484,801 357,683,036
Project or Programs wise
5 Amount spent on the 141,155,161 63,043,074 153,484,801 357,683,036
projects or Programs
(1) Direct expenditure 141,155,161 63,043,074 153,484,801 357,683,036
or amount spent
thru implementing
agency on projects or
programs
(2) Overheads
6 Cumulative expenditure 141,155,161 63,043,074 153,484,801 357,683,036
up to the reporting
period
7 Amount spent: Direct or 141,155,161 63,043,074 153,484,801 357,683,036
through Implementing
agency
Details of implementing agency: Charities Aid Foundation, India.

6. In case the company has failed to spend the two per cent of the average net profit of the last three financial years
or any part thereof, the company shall provide the reasons for not spending the amount in its Board report.
Not applicable. As per the requirements of Section 135 of the Companies Act, 2013, the Company has spent
two percent of the average net profit of the three immediately preceding financial years on its CSR activities.
7. A responsibility statement of the CSR Committee that the implementation and monitoring of CSR Policy is in
compliance with CSR objectives and Policy of the company.
We hereby confirm that implementation and monitoring of the CSR Policy are in compliance with the CSR
objectives and CSR Policy of the Company.
Harinderjit Singh Chaitanya Kamat

Chairperson of the Committee Managing Director & Chief Executive Officer
DIN: 06628566 DIN: 00969094
Place: Mumbai
Date: June 24, 2020
35
Corporate governance report
The detailed report on Corporate Governance of Oracle Financial Services Software Limited (“the Company”) for the
financial year 2019-20 as per Schedule V of the Securities and Exchange Board of India (Listing Obligations and
Disclosure Requirements) Regulations, 2015 (“Listing Regulations”) is set out below:
1. Company’s philosophy on code of governance

The Company believes in adopting and adhering to all applicable regulations and globally recognized corporate
governance practices, and continuously benchmarking itself against such requirements. The Company understands
and respects its fiduciary role and responsibility to its Members and strives to meet their expectations.
2. Board of Directors
2.1 Composition of the Board
The composition of the Board of Directors of the Company (“the Board”) and the number of directorships and board
committee chairpersonships / memberships held by the Directors as on March 31, 2020, their attendance at the
Board Meetings during the year then ended and at the last Annual General Meeting are given below:
Name of the Director Board Attendance Number of Number of Committee positions

Meetings at the last Directorships held in other Companies
attended AGM held in other
during the on August 8, Companies As Chairperson As Member
year 2019
Mr. S Venkatachalam 6/6 Present 3 – 1
Chairperson
(DIN: 00257819)
Mr. Richard Jackson 6/6 Present 5 1 2
(DIN: 06447687)
Mr. Sridhar Srinivasan 6/6 Present 5 5 1
(DIN: 07240718)
Ms. Jane Murphy 6/6 Present 9 1 1
(DIN: 08336710)
Non-Executive, Non-Independent Directors
Mr. Harinderjit Singh 5/6 Present 1 – –
(DIN: 06628566)
Ms. Kimberly Woolley 6/6 Present 10 – 1
(DIN: 07741017)
Mr. Vincent Secondo Grelli 6/6 Present – – –
(DIN: 08262388)
Mr. Yong Meng Kau 6/6 Present 13 – –
(DIN: 08234739)
Executive Directors
Mr. Chaitanya Kamat 5/6 Present – – –
Managing Director &
Chief Executive Officer
(DIN: 00969094)
Mr. Makarand Padalkar 5/5 Present 1 – –
Whole-time Director &
Chief Financial Officer
(DIN: 02115514)
Video / audio-conferencing facilities are also used to facilitate Directors travelling / residing abroad or at other locations
to participate in the meetings.

Notes:
1. The Chairperson of the Board is a Non-Executive, Independent Director and the composition of the Board is in
conformity with the Listing Regulations.
2. Pursuant to Regulation 26 of Listing Regulations, none of the Directors on the Board holds directorships in more
than ten public companies, or acts as a chairperson of more than five committees across all the Indian Public
Companies in which he / she is a Director. None of the Directors are related inter-se.
3. For the purpose of determining the number of directorships in other companies, all the companies around the
world (listed, unlisted, private limited companies and foreign companies), including subsidiaries of the Company
are considered.
4. For the purpose of determining the number of chairpersonships / memberships of the committees of the Board
of other companies, only the Audit Committee and the Stakeholders’ Relationship Committee of the companies
are considered.
5. None of the Independent Directors of the Company held directorships in other listed companies except
Mr. Sridhar Srinivasan who serves as a Non-Executive, Independent Director in Bank of Baroda.
6. Independent Directors are Non-Executive Directors as defined under Section 149 of the Companies Act, 2013
(“the Act”). All the Independent Directors have confirmed that they meet criteria of independence as specified in
the Act and Listing Regulations and are independent of the management. The tenure of Independent Directors
is in accordance with the Act and Listing Regulations.
7. The familiarization program formulated for the Directors is available on the website of the Company
at: https://www.oracle.com/a/ocom/docs/industries/financial-services/financial-familarization-program.pdf
8. As on March 31, 2020, none of the Non-Executive Directors held any equity shares of the Company except
Mr. S Venkatachalam who held 6,000 equity shares of the Company.
9. Changes in Board during the year:
- Ms. Maria Smith resigned as a Non-Executive, Non-Independent Director of the Company with effect from
May 9, 2019.
- The Members of the Company at the Annual General Meeting held on August 8, 2019 approved:
a. Appointment of Mr. Makarand Padalkar, Chief Financial Officer of the Company, as the
Whole-time Director and Chief Financial Officer of the Company for a term of five consecutive years
from May 9, 2019 to May 8, 2024, liable to retire by rotation.
b. Appointment of Mr. Yong Meng Kau, as a Non-Executive, Non-Independent Director of the Company,
c. Appointment of Mr. Vincent Secondo Grelli, as a Non-Executive, Non-Independent Director of the
Company, liable to retire by rotation.
d. Appointment of Ms. Jane Murphy, as a Non-Executive, Independent Director of the Company, for a
term of five consecutive years up to December 31, 2023.
e. Re-appointment of Mr. Sridhar Srinivasan, Non-Executive, Independent Director of the Company, for
a further term of five consecutive years from April 1, 2020 up to March 31, 2025.
37
10. The Board has identified the following skills and competencies that help create a dynamic and effective Board:
Strategy & Leadership Experience in a significant leadership position with sound

business judgment and a C-level perspective in areas
important to the Company.
Industry Knowledge Experience in technology or financial services or allied
industries, with good understanding of the markets, business
and management processes for a regional/global business.
Governance, Compliance and Finance Understanding of governance in global businesses in areas
such as people practices, financial accounting & reporting, risk
management or legal & regulatory compliances.
The Directors of the Company collectively bring to the boardroom the above competencies and diverse
experiences & perspectives in areas relevant to the Company. The experience, qualifications and skills of each
director that the Board considers important are provided below:
Director Skills and Competencies

Strategy & Leadership Industry Knowledge Governance, Compliance
& Finance
Mr. S Venkatachalam Rich experience in the field of Banking, Finance, Administration, Compliance,
Taxation and Corporate laws. Served as an Independent Director with leading
financial institutions.
Mr. Chaitanya Kamat Having over thirty five years of financial services, product engineering, consulting
and business transformation experience with over two decades of leadership and
board level roles in both national and global organizations.
Mr. Harinderjit Singh Over three decades of experience in managing global technology businesses.
Heads the Financial Services Global Business Unit in Oracle Corporation.
Ms. Jane Murphy Leading legal expert with extensive international experience in the fields of
corporate law; M&A and data privacy regulations. Founded her own law firm
and a start-up dedicated to representing companies around the world for data
protection purposes in the EU. Independent board member at several financial
services companies in Europe. Rich experience in global risk & compliance and
corporate governance.
Ms. Kimberly Woolley Extensive experience in managing legal and corporate affairs for Oracle
Corporation. Has unique perspective of international Boards and knowledge and
understanding of global processes, risk management, corporate responsibility,
compliance and governance.
Mr. Makarand Padalkar Lifetime experience of managing the entire lifecycle of technology products
specializing in Banking industry ranging from product conceptualization,
marketing, alliances to sales. Part of the team leading the Company’s IPO. As the
CFO of the Company for over a decade, has a deep understanding of business,
compliance, risk and governance requirements.
Mr. Richard Jackson Global experience with multinational and large regional banks holding CEO
positions. Led number of business and technology transformations at banks in
EMEA and APAC. Independent board member at several companies including
insurance and financial institutions in UK and Europe.
Mr. Sridhar Srinivasan Worked for nearly 30 years with a global bank across Europe, Africa and Asia
holding many leadership positions including as country CEO and regional
manager for large banking businesses. This experience has made him a Banking
expert with special emphasis on risk, compliance and regulatory management.
He has also worked with a global consulting firm where he advised many banks
and finance companies on these topics. He is an independent director on the
boards of large Indian and European banks.
Mr. Vincent Secondo Grelli Multiple decades of experience in managing tax departments and tax matters
of large global IT companies. Provides a unique perspective to the Company
on tax risk management/tax governance complexities of operating in
multi-national tax jurisdictions.
Mr. Yong Meng Kau Rich experience in managing corporate legal and transactional matters in the
ASEAN and South Asia region that helps the Company manage its large operations
in the region.

The Company is a majority owned subsidiary of Oracle Corporation, a global technology leader with presence
across the globe. The Company is able to leverage the deep expertise in technology, global management
practices, specific domain area and regulatory requirements applicable when doing business globally.
2.2 Board meetings held during the financial year 2019-20

The Company held Board Meetings at regular intervals during the financial year 2019-20 and the maximum
gap between any two meetings of the Board was less than 120 days. All material information was circulated to
all the Directors before the meeting or placed at the meeting, including minimum information required to be
made available to the Board as prescribed under Part A of Schedule II of the Listing Regulations. The necessary
quorum was present for all the Board Meetings.
During the financial year 2019-20, six Board Meetings were held on the following dates:
May 9, 2019, June 20, 2019, August 7, 2019, August 8, 2019, November 13, 2019 and February 4, 2020.
In case of urgent business needs, the Board’s approval was obtained by way of circular resolutions in accordance
with the Act.
During the year, a separate meeting of Independent Directors was held on November 13, 2019 and all
the Independent Directors of the Company participated in the said meeting without the presence of the
Non-Independent Directors and members of the Management of the Company.
2.3 Compliance with the code of conduct

The Company has adopted the “Code of Ethics and Business Conduct” (the Code) which sets forth the standards
of behavior for the Board and management of the Company. All the Directors and Senior Managerial Personnel
of the Company have confirmed compliance with the Code as of March 31, 2020. The code is available on the
website of the Company at: https://www.oracle.com/assets/cebc-176732.pdf.
3. Audit committee
3.1 Brief description of terms of reference
The Audit Committee of the Company is governed by the terms of reference adopted by the Board which are in line
with the regulatory requirements mandated by the Act and the Listing Regulations.
The primary objective of Audit Committee is to monitor and provide effective supervision of the management’s
financial reporting process and to ensure accurate, timely and proper disclosures and transparency, integrity and
quality of financial reporting.
An extract of the terms of reference of the Audit Committee is given below:

- Oversight of the Company’s financial reporting process and disclosure of its financial information;
- Recommending to the Board the appointment, re-appointment and, if required, replacement or removal of the
statutory auditors; fixing their remuneration and the terms of appointment;
- Reviewing with the management, performance of statutory and internal auditors;
- Reviewing with the management, quarterly and annual financial statements before submission to the Board for
approval;
- Evaluating internal financial controls and risk management systems, and adequacy of the internal control
systems;
- Scrutinizing intercorporate loans and investments;
- Approving transactions with related parties and any modifications thereto;
- Reviewing the functioning of Whistle Blower mechanism.
39
3.2 Composition, meetings and attendance of the committee
During the financial year 2019-20, four meetings of the Audit Committee were held on May 9, 2019, August 7, 2019,
November 13, 2019 and February 4, 2020.
The details of the composition of the Audit Committee as on March 31, 2020 and the members’ attendance at the
Committee meetings during the year then ended were as under:
Name of the Member Number of meetings attended

Mr. Richard Jackson Chairperson, Non-Executive, Independent Director 4/4
Mr. S Venkatachalam Member, Non-Executive, Independent Director 4/4
Mr. Sridhar Srinivasan Member, Non-Executive, Independent Director 4/4
Ms. Jane Murphy Member, Non-Executive, Independent Director 3/3
(w.e.f. May 9, 2019)
Ms. Maria Smith, Director and member of Audit Committee, resigned with effect from May 9, 2019.
The Company Secretary acts as the Secretary to the Audit Committee meetings. The Managing Director and
Chief Executive Officer, Whole-time Director and Chief Financial Officer, Chief Accounting Officer, Statutory Auditors,
Internal Auditors and Legal Counsel are permanent invitees to the Audit Committee meetings. The Chairperson of the
Committee was present at the last Annual General Meeting held on August 8, 2019 to address shareholders' queries.
4. Nomination and remuneration committee

4.1 Brief description of terms of reference
The Nomination and Remuneration Committee of the Company is governed by the terms of reference adopted by the
Board which are in line with the regulatory requirements mandated by the Act and the Listing Regulations. Pursuant
to the amendments in the Listing Regulations, the charter of the Committee was amended at the Board Meeting held
on November 13, 2019, and extract of which is given below:
1. To formulate the criteria for determining qualifications, positive attributes and independence of directors;
2. To recommend to the Board policies relating to the remuneration of the directors, key managerial personnel,
senior management and other employees of the Company;
3. To review the criteria and conduct the evaluation of performance of Directors and the Board together with Board
Committees;
4. To administer and deal with all matters concerning the Employee Stock Option (ESOP) Schemes including grant
of stock options to the eligible directors, key managerial personnel and employees of the Company and its
subsidiary companies from time to time;
5. To identify the persons who are qualified to become directors and recommend to the Board their appointment
/ re-appointment.
4.2 Composition, meetings and attendance of the committee

During the financial year 2019-20, two meetings of the Nomination and Remuneration Committee were held on
June 20, 2019 and August 8, 2019. Additionally, business was also dealt with by passing circular resolutions.
The details of the composition of the Committee as on March 31, 2020 and the member’s attendance at the Committee
meetings during the year then ended were as under:

Mr. Richard Jackson Chairperson, Non-Executive, Independent Director 2/2
Mr. Harinderjit Singh Member, Non-Executive, Non-Independent Director 2/2
4.3 Performance evaluation criteria for independent directors

The performance evaluation criteria for the Independent Directors is determined by the Nomination and Remuneration
Committee. The factors like regular participation, business expertise, independent views, contribution in the form
of knowledge sharing and guidance to strategies and risk management are amongst the performance evaluation
criterions.

5. Remuneration paid to directors
The Nomination and Remuneration Committee determines and recommends to the Board the compensation payable
to the Directors, Key Managerial Personnel and Senior Management of the Company. The limit for the commission to be
paid to the Independent Directors and the remuneration payable to the Managing Director and Chief Executive Officer;
Whole-time Director and Chief Financial Officer of the Company are approved by the Members of the Company. The
annual compensation including bonus of the Executive Directors is approved by the Nomination and Remuneration
Committee within the limits approved by the Members of the Company.
The Committee reviews the norms for ESOP allocation and approves the grant of the options to eligible employees.
The criteria for payment of commission to the Non-Executive, Independent Directors includes a base commission plus
incremental commission depending on the number and type of committees where they are members or chairpersons,
and holding number of directorships in the material unlisted subsidiaries of the Company.
5.1 Details of remuneration paid to the directors during the financial year 2019-20
(Amounts in ₹ million, except number of OSUs)

Name of the Director OSUs granted
*
Salary Contribution Commission Total
under ESOPs to Provident paid Amount
during the year Fund and paid
other funds
Executive Directors
Mr. Chaitanya Kamat# 40000 42.03 1.89 − 43.92
Mr. Makarand Padalkar#@ 11250 9.59 0.78 − 10.37
Mr. S Venkatachalam − − − 4.40 4.40
Ms. Jane Murphy − − − 3.85 3.85
Mr. Richard Jackson − − − 4.20 4.20
Mr. Sridhar Srinivasan − − − 3.20 3.20
*OSUs or OFSS Stock Units are Stock Options granted at an exercise price equal to face value of the shares.
#
Excluding perquisite on ESOP, Provision for Gratuity and Compensated absence benefit, if any.
@
Mr. Makarand Padalkar, Chief Financial Officer, was appointed as a Whole-time Director & Chief Financial Officer
w.e.f. May 9, 2019.
During the financial year ended March 31, 2020, the Nomination and Remuneration Committee granted 142,250
OFSS Stock Units (OSUs) at an exercise price of ₹ 5 under OFSS Stock Plan 2014 to the eligible employees, including
Directors, of the Company and its Subsidiaries as under:
Date of Grant No. of OSUs granted

May 13, 2019 1200
June 27, 2019 124800
September 2, 2019 15000
September 18, 2019 500
October 31, 2019 750
41
The terms of Employee Stock Options / OSUs granted under OFSS Stock Plan 2014 to the Directors were as follows:
Name of the Director Options / OSUs Options / OSUs Options /OSUs Exercise Expiry Date
outstanding as exercised & allotted outstanding as at price (₹)
at April 1, 2019 during the year March 31, 2020
Mr. Chaitanya Kamat 6250 – 6250 5.00 March 29, 2025
12500 – 12500 5.00 November 4, 2025
12500 – 12500 5.00 June 27, 2026
18750 – 18750 5.00 June 27, 2027
22500 – 22500 5.00 June 28, 2028
– – 25000 5.00 June 26, 2029
– – 15000 5.00 September 1, 2029
Mr. Makarand Padalkar 2500 2500 – 5.00 March 29, 2025
2500 2500 – 5.00 November 4, 2025
5000 2500 2500 5.00 June 27, 2026
7500 2500 5000 5.00 June 27, 2027
8750 – 8750 5.00 June 28, 2028
– – 11250 5.00 June 26, 2029
The OSUs were issued at ₹ 5 each. The options / OSUs granted under OFSS Stock Plan 2014 vest over a period of 4
years from the date of grant and are subject to continued employment/directorship with the Company.
6. Stakeholders’ relationship committee

The Stakeholders’ Relationship Committee of the Company is governed by the terms of reference adopted by the
Board which are in line with the regulatory requirements mandated by the Act and the Listing Regulations.
The terms of reference of the Stakeholders’ Relationship Committee include:
- Consider and resolve the grievances of the security holders including complaints related to transfer / transmission
of shares, non-receipt of annual report, non-receipt of declared dividends, issue of duplicate certificates, general
meetings, etc.
- Review of measures taken for effective exercise of voting rights by the shareholders.
- Review of adherence to the service standards adopted in respect of various services being rendered by the
Company’s Registrar & Share Transfer Agents.
- Review of various measures and initiatives taken for reducing the quantum of unclaimed dividends and ensuring
timely receipt of dividend warrants / annual reports / statutory notices by the shareholders.
During the financial year 2019-20, three meetings of the Committee were held on May 9, 2019, November 13, 2019
and February 4, 2020.
The details of the composition of the Committee as on March 31, 2020 and the members’ attendance at the Committee

Mr. S Venkatachalam Chairperson, Non-Executive, Independent Director 3/3
Mr. Chaitanya Kamat Member, Executive Director 3/3
Mr. Makarand Padalkar Member, Executive Director 3/3
The Chairperson of the Committee was present at the Annual General Meeting held on August 8, 2019 to address the
shareholders' queries.
Details of shareholders’ complaints received, resolved and outstanding during the financial year 2019-20 are given
below:
Particulars No. of Complaints

Complaints outstanding on April 1, 2019 Nil
Complaints received during the financial year ended March 31, 2020 2
Complaints resolved during the financial year ended March 31, 2020 2
Complaints outstanding on March 31, 2020 Nil

Mr. Onkarnath Banerjee, Company Secretary of the Company, is designated as the Compliance Officer, who oversees
the redressal of the investors’ grievances. Mr. Banerjee is also designated as the Nodal Officer pursuant to Investor
Education and Protection Fund Rules.
7. Transfer committee
The scope of Transfer Committee is to consider and approve requests for transfer and transmission of equity shares
and other investor related matters. The meetings are held as needed, based on such requests being received from the
shareholders. During the financial year 2019-20, there were no meetings held.
The composition of the Committee as on March 31, 2020 was as under:
Name of the Member

Mr. S Venkatachalam Chairperson, Non-Executive, Independent Director
Mr. Makarand Padalkar Member, Executive Director
8. ESOP allotment committee

The scope of ESOP Allotment Committee is to consider and approve requests for allotment of equity shares on
exercise of stock options or OFSS Stock Units by eligible employees of the Company and its subsidiaries.
During the financial year 2019-20, twelve meetings of the Committee were held on April 24, 2019, May 22, 2019,
June 26, 2019, July 29, 2019, August 21, 2019, September 25, 2019, October 23, 2019, November 20, 2019,
December 17, 2019, January 22, 2020, February 26, 2020 and March 24, 2020.
The details of the composition of the Committee as on March 31, 2020 and the members’ attendance at the Committee

Mr. S Venkatachalam Chairperson, Non-Executive, Independent Director 12/12
9. Risk management committee

The scope of Risk Management Committee is to formulate Risk Management Policy of the Company, to identify
elements of risks, if any, which in the opinion of the Board might threaten the existence of the Company. The Audit
Committee and the Board can refer certain matters to the Risk Management Committee as they deem fit. The
Committee and senior management team assess and identify potential risks and take necessary actions to mitigate
them. The Committee invites the representatives of internal auditor and other stakeholders / executives as needed
for the meetings.
During the financial year 2019-20, one meeting of the Committee was held on February 4, 2020. Additionally,
business was also dealt with by passing circular resolution.
The composition of Committee as on March 31, 2020 and the members’ attendance at the Committee meeting
during the year then ended were as under:

Mr. Sridhar Srinivasan Chairperson, Non-Executive, Independent Director 1/1
10. Corporate social responsibility committee

The scope of Corporate Social Responsibility (“CSR”) Committee is to prepare and recommend to the Board the
Corporate Social Responsibility Policy (“CSR Policy”), recommend CSR activities and the amount the Company should
spend on CSR activities, monitor the implementation of CSR Policy and activities from time to time, ensure compliance
with all matters relating to CSR and to provide updates to the Board.
During the financial year 2019-20, business was dealt with by passing circular resolutions.
43
The composition of Committee as on March 31, 2020 was as under:
Name of the Member

Mr. Harinderjit Singh Chairperson, Non-Executive, Non-Independent Director
Mr. S Venkatachalam Member, Non-Executive, Independent Director
Mr. Chaitanya Kamat Member, Executive Director
11. Business responsibility committee

The Company has a Business Responsibility Committee to oversee matters concerning the Business Responsibility
Policy implementation and guidance, and to decide on any matter or doubt with regard to the applicability,
interpretation, operation and implementation of the Business Responsibility Policy. The Managing Director and
Chief Executive Officer acts as the Chairperson of the Committee and the other members are Whole-time Director
and Chief Financial Officer, Chief Accounting Officer, Vice President and Head-Human Resources, Legal Counsel and
Compliance and Ethics Officer, Vice President Business Operations and Company Secretary and Compliance Officer.
12. General body meetings

Details of last three Annual General Meetings and summary of special resolutions passed therein are
as under:
Financial Year Date and Time Venue Gist of special resolutions passed
2018-19 August 8, 2019 Courtyard By Marriott Re-appointment of Mr. Sridhar Srinivasan
3.00 p.m. Mumbai International Airport (DIN: 07240718) as an Independent
C.T.S No. 215, Andheri Kurla Director for a further term of five
Road, Andheri (East) consecutive years up to March 31, 2025.
Mumbai 400059
2017-18 August 14, 2018 Rama & Sundri Watumull Re-appointment of Mr. S Venkatachalam
3.00 p.m. Auditorium, K C College (DIN: 00257819) as an Independent
124, Dinshaw Wachha Road Director for a further term of five
Churchgate, Mumbai 400020 consecutive years up to March 31, 2024.
Re-appointment of Mr. Richard Jackson
(DIN: 06447687) as an Independent
Director for a further term of five
consecutive years up to March 31, 2024.
2016-17 September 20, 2017 Shri Bhaidas Maganlal N.A.
2.30 p.m. Sabhagriha, Bhaktivedanta
Swami Marg, Vile Parle (West)
Mumbai 400056
(i) There was no Extra-Ordinary General Meeting held during the last three financial years.
(ii) There was no matter requiring approval of the Members through Postal Ballot during the financial year ended
March 31, 2020.
(iii) No special resolution is currently proposed to be conducted through postal ballot.
13. Means of communication

The Company communicates with its shareholders from time to time through multiple channels of communications
such as online portals of the Stock Exchanges, press releases, annual reports, press notices and advertisements and
uploading relevant information on its website.
The Company’s quarterly financial results, press releases, annual reports and other relevant corporate documents are
also placed on the Company’s website at www.oracle.com/financialservices and the same can be downloaded.
The quarterly and annual results of the Company were published in widely circulated English and Marathi newspapers,
such as Business Standard and Sakal.
All the disclosures made to the Stock Exchanges are also available on the Company’s website at:
www.oracle.com/financialservices.
To support the ‘Green Initiative’, Members who have not yet registered their email addresses are requested to register
the same with their Depository Participants (“DPs”) in case the shares are held by them in electronic form, or with the
Registrar and Transfer Agents of the Company, in case the shares are held by them in physical form.

14. General shareholder information
14.1 Annual general meeting
Day, Date, Time and Venue Tuesday, August 18, 2020 at 5.00 p.m. through Video Conference.
The Company is conducting meeting through VC / OAVM pursuant
to the MCA Circular dated May 5, 2020 and as such there is no
requirement to have a venue for the AGM. For details please refer to
the Notice of this AGM.
Financial Year April 1 to March 31
Date of Book Closure Wednesday, August 12, 2020 to Tuesday, August 18, 2020
(both days inclusive)
Dividend Payment Date Not Applicable
14.2 Listing details
Name and Address of the Stock Exchanges where the Company’s shares are listed Stock Code / Symbol
BSE Limited (BSE) 532466
Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai 400001
National Stock Exchange of India Limited (NSE) OFSS
Exchange Plaza, Bandra-Kurla Complex, Bandra (East), Mumbai 400051
The annual listing fees for the financial year 2019-20 have been paid to both the Exchanges.
14.3 Market price data

Monthly high, low and volume of the shares of the Company traded on the Stock Exchanges from April 1, 2019 to
March 31, 2020 are given below:
Month and Year BSE NSE
High (₹) Low (₹) Volume of High (₹) Low (₹) Volume of
Shares Shares
April 2019 3649.00 3377.55 62993 3634.35 3370.05 630812
May 2019 3524.25 3359.55 49685 3540.00 3355.70 545632
June 2019 3445.00 3022.00 52764 3447.00 3020.45 461097
July 2019 3421.90 3127.70 57601 3424.20 3125.00 696475
August 2019 3376.90 2832.90 101804 3389.95 2829.00 713663
September 2019 3207.20 2856.00 100052 3262.70 2654.00 770954
October 2019 3177.95 3010.00 50329 3180.05 3000.00 280390
November 2019 3238.50 2900.00 13639 3240.00 2886.15 322702
December 2019 3079.90 2482.00 16109 3025.00 2336.20 316668
January 2020 3035.00 2660.00 22942 3040.00 2658.20 618873
February 2020 3142.00 2626.45 24735 3150.00 2630.00 320696
March 2020 2718.00 1532.50 31198 2730.00 1506.00 883192
45
14.4 Performance of the share price of the Company in comparison to NIFTY 50
12,450 3,700
11,225 3,150
OFSSL Price (₹)

NIFTY 50
10,000 2,600
8,775 2,050
7,550 1,500
Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20
OFSSL Price NIFTY 50
14.5 Registrar and transfer agents

Link Intime India Private Limited (formerly Intime Spectrum Registry Limited) is the Registrar and Transfer Agents of
the Company (“the RTA”) and their contact details are as under:
Name Link Intime India Private Limited

Address C 101, 247 Park, L B S Marg, Vikhroli (West),
Mumbai 400083
Tel. no. +91 22 49186000
Fax no. +91 22 49186060
Email rnt.helpdesk@linkintime.co.in
14.6 Share transfer system

Transfers of equity shares in electronic form are effected through the depositories with no involvement of the Company.
Pursuant to amendments in the Act and the Regulations with effect from April 1, 2019 securities of listed companies
can be transferred only in dematerialized form. Accordingly, to avail benefits of dematerialization, Members are advised
to dematerialize the shares which are held by them in physical form.
14.7 Distribution of shareholding as on March 31, 2020
Paid-up shares in capital (in ₹) Number of % to total No. of Shares Paid-up value (Face % of Total no.
Shareholders shareholders value of ₹ 5 each) of shares
Up to 2500 27480 97.94 2082159 10410795 2.42
2501 to 5000 232 0.83 820925 4104625 0.96
5001 to 10000 152 0.54 1106966 5534830 1.29
10001 to 20000 79 0.28 1088799 5443995 1.27
20001 to 30000 38 0.13 924237 4621185 1.08
30001 to 40000 20 0.07 711572 3557860 0.83
40001 to 50000 7 0.02 320175 1600875 0.37
50001 to 100000 22 0.08 1556073 7780365 1.81
100001 & Above 28 0.1 77268392 386341960 89.97
Total 28058 100.00 85879298 429396490 100.00

14.8 Dematerialization of shares and liquidity
The equity shares of the Company are tradeable under compulsory demat mode. Under the Depository System, the
International Securities Identification Number (ISIN) allotted to the Company’s shares is INE881D01027.
As on March 31, 2020, 99.75% of the equity shares of the Company were held in electronic form and 99.81% of the
shareholders held equity shares in electronic form.
14.9 Outstanding GDRs / ADRs / warrants / any convertible instruments, conversion date and likely
impact on equity
Not Applicable - the Company has not issued any GDRs / ADRs / Warrants or any convertible instruments.
14.10 Commodity price risk or foreign exchange risk and hedging activities
The Company does not deal in commodities and hence the disclosure pursuant to SEBI Circular dated
November 15, 2018 is not applicable. For details on foreign exchange risk and hedging activities, please refer to
Management's Discussion and Analysis Report that forms part of the Annual Report.
14.11 Plant locations

In view of the nature of the Company’s business, viz., Information Technology Services and Information Technology
enabled services, the Company operates from various offices in India and abroad.
14.12 Address for correspondence

The Company Secretary and Compliance Officer
Maharashtra, India
Tel. no. +91 22 6718 3000
Fax no. +91 22 6718 3001
CIN: L72200MH1989PLC053666
The addresses of other offices of the Company and its subsidiaries are mentioned in the corporate information section
of the Annual Report.
14.13 Credit rating

The Company does not carry any debt and is not required to obtain a credit rating.
15. Other disclosures

a. There are no materially significant related party transactions that may have potential conflict with the interests of
the Company at large.
b. The Company has complied with statutory compliances and no penalty or stricture is imposed on the Company
by the Stock Exchanges or Securities and Exchange Board of India (SEBI) or any other statutory authority on any
matter related to the capital markets during the last three years.
c. The Company has a Whistle Blower mechanism which provides adequate safeguards to employees who wish
to raise concerns about violations of the Code of Ethics and Business Conduct, incorrect or misrepresentation
of any financial statements and reports, unethical behavior, etc. No person has been denied access to the Audit
Committee.
d. The policy for determining material subsidiaries is disclosed on the Company’s website at:
http://www.oracle.com/us/industries/financial-services/policy-determining-material-2615655.pdf
e. The related party transactions policy as approved by the Board is available on the Company’s website at:
http://www.oracle.com/us/industries/financial-services/ofss-party-transactions-policy-2288144.pdf
f. The Company does not undertake any trading in commodities.
g. The Company has not raised any funds through preferential allotment or qualified institutions placement as
specified under Regulation 32(7A) of the Listing Regulations.
h. A certificate from Mr. Prashant Diwan, Practicing Company Secretary, has been received stating that none of the
Directors on the Board of the Company has been debarred or disqualified from being appointed or continuing
as Directors of the Company by the SEBI, Ministry of Corporate Affairs (MCA) or any such statutory authority.
47
i. M/s. Mukund M. Chitale & Co., Chartered Accountants (Firm Registration no. 106655W), are the Statutory
Auditors of the Company. The details of Statutory Auditors’ fees for the financial year 2019-20, on a consolidated
basis, are given below:
Particulars Amounts (₹ in million)

Statutory Audit Fees *
16.88
Others 0.14
Total 17.02
*Includes audit and audit related services.
j. Disclosure in relation to the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal)
Act, 2013:
Particulars No. of Cases

Number of complaints filed during the financial year 2019-20 3
Number of complaints disposed of during the financial year 2019-20 2
Number of complaints pending as at the end of the financial year 2019-20 *
1
*The complaint was resolved on April 15, 2020.
k. The Company is compliant with the applicable mandatory requirements of Regulations 17 to 27 and clauses (b)
to (i) of sub-regulation (2) of Regulation 46 of the Listing Regulations. The Company has also complied with the
requirements of the Corporate Governance Report as provided in Part C of Schedule V of sub-regulations (2) to
(10) of the Listing Regulations.
l. Unclaimed Dividend: Pursuant to Sections 124 and 125 and other applicable provisions, if any, of the Companies
Act, 2013, any money transferred to unpaid dividend account which is not encashed / claimed within seven
years from the date of declaration are to be transferred to the Investor Education and Protection Fund (“IEPF”)
Authority. The Company has uploaded the details of unpaid / unclaimed amounts lying with the Company as
on March 31, 2020 on the Company’s website at www.oracle.com/financialservices and on the website of the
Ministry of Corporate Affairs at www.iepf.gov.in.
m. Unclaimed Shares: In terms of Part C of Schedule V of the Listing Regulations, there are no shares outstanding
in demat suspense account/ unclaimed suspense account of the Company.
16. Discretionary requirements as specified in Part E of Schedule II of the listing regulations:

a. Separate posts of Chairperson and Chief Executive Officer: the Chairperson of the Board is a Non-Executive
Director and his position is separate from that of the Managing Director and Chief Executive Officer of the
Company.
b. The Statutory Auditors have issued unmodified audit opinion / report for the financial year 2019-20.
c. The Internal Auditor of the Company reports to the Audit Committee.

CEO & CFO Certificate
May 14, 2020

The Board of Directors
Mumbai
CEO & CFO Compliance Certificate pursuant to Regulation 17(8) and Part B of Schedule II of the Securities and
Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulation, 2015
We the undersigned, in our respective capacities as Chief Executive Officer and Chief Financial Officer of
Oracle Financial Services Software Limited (“the Company”), certify that:
A. We have reviewed the financial statements and the cash flow statement of the Company for the quarter and year
ended on March 31, 2020 and that to the best of our knowledge and belief state that:
1. These statements do not contain any materially untrue statement or omit any material fact or contain any
statements that might be misleading;
2. These statements together present a true and fair view of the Company’s affairs and are in compliance with
the existing accounting standards, applicable laws and regulations.
B. We further state that to the best of our knowledge and belief, no transactions entered into by the Company
during the quarter and year ended on March 31, 2020 are fraudulent, illegal or violative of the Company’s code
of conduct.
C. We are responsible for establishing and maintaining internal controls for financial reporting and evaluating the
effectiveness of the internal control systems over the financial reporting of the Company and we have disclosed
to the auditors and the Audit Committee, deficiencies in the design or operation of such internal controls, of
which we are aware and the steps we have taken or propose to take to rectify these deficiencies.
D. We have indicated, to the auditors and the Audit Committee:
1. Significant changes in internal control over financial reporting during the quarter and year ended on
March 31, 2020;
2. Significant changes in accounting policies during the quarter and year ended on March 31, 2020; and that
the same have been disclosed in the notes to the financial statements; and
3. Instances of significant fraud, of which we have become aware and the involvement therein of the
management or an employee having a significant role in the Company’s internal control system over
financial reporting.
Chaitanya Kamat Makarand Padalkar

Managing Director & CEO Whole-time Director & Chief Financial Officer
DECLARATION REGARDING COMPLIANCE BY BOARD MEMBERS AND SENIOR MANAGEMENT PERSONNEL

WITH THE COMPANY’S CODE OF CONDUCT
As provided under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Board Members
and Senior Management Personnel have confirmed compliance with the Code of Ethics and Business Conduct for the
financial year ended March 31, 2020.
Chaitanya Kamat
Managing Director & CEO
Mumbai, May 14, 2020
49
Certificate on corporate governance
To the Members,
I have examined the compliance of conditions of Corporate Governance by Oracle Financial Services Software
Limited for the year ended 31st March 2020, as stipulated in the Regulation 17 to 27, clauses (b) to (i) of sub-
regulation (2) of regulation 46 and paragraph C, D and E of Schedule V of the Securities and Exchange Board of India
(Listing Obligations and Disclosure Requirements) Regulations, 2015.
The Compliance of conditions of Corporate Governance is the responsibility of the management. My examination
was limited to procedures and implementation thereof adopted by the Company for ensuring the compliance of the
conditions of the Corporate Governance. It is neither an audit nor an expression of opinion on the financial statements
of the Company.
In my opinion and to the best of my information and according to the explanation given to me and based on the
representations made by the Management, I certify that the Company has complied with the conditions of Corporate
Governance as stipulated in the Regulation 17 to 27, clauses (b) to (i) of sub-regulation (2) of regulation 46 and
paragraph C, D and E of Schedule V of the Securities and Exchange Board of India (Listing Obligations and Disclosure
Requirements) Regulations, 2015.
I further state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency
or effectiveness with which the management has conducted the affairs of the Company.
I have carried out the verification of part of the records through digital mode as well as relied upon the Management
representation made by the Company due to prevailing conditions of COVID‐19 in the country.
CS Prashant Diwan
FCS No.: 1403 / CP No.: 1979
PR: 530/2017
UDIN: F001403B000377361
Date: June 24, 2020

Place: Mumbai

Management’s discussion and analysis
of financial condition and results of operations
Technology trends in the financial services industry and outlook

The banking industry in the next decade will enter a new phase of hyper-scale connectivity. This connectivity will go
far beyond today’s mobile revolution and will involve complex networks and ecosystems of banks, firms, devices, and
humans.
With the turn of the decade the industry is only just beginning to get comfortable with the idea of building new business
models and strategies that can take advantage of the prevailing digitally driven ecosystems. However, shedding legacy
systems and culture, executing a futuristic vision, and becoming a truly modern financial establishment will require
more than just incremental change. Banks will have to pick up the pace of transformation if they are to be meet
changing consumer expectations, beat a highly agile competition and achieve success in this new phase of hyper
scale connectivity.
Advanced technologies like AI, Machine Learning, Block Chain and Biometrics are also gaining traction within the
financial services industry. Forward looking organizations are exploring adaptive and predictive analytics, Internet of
Things (IoT), and intelligent automation capabilities to make better predictions of outcomes, improve decision making
as well as offer human-like customer experiences with efficiency and at scale.
The Application Programming Interface (API) economy offers banks the opportunity to commercialize resources like
data, services and other capabilities to directly create business value. As the API economy continues to evolve, Open
Banking capabilities will increasingly become table stakes for banks. These capabilities will enable them to sell and
deliver improved products, services, and experiences, access existing and new customers, tap new markets and drive
revenue growth.
Cloud adoption is gaining popularity in the financial services industry. What was once perceived as an unsure business
step was now seen as an opportunity to reduce costs and grow the business. Your company applies a modern approach
to assist banks rapidly adopt and realize the benefits of running their applications on Cloud. We have launched new
initiatives and programs that enable customers to expedite their transition to the Cloud in a safe and cost-effective
manner.
In the recent weeks there has been growing concern on the spread and impact of COVID-19. The global pandemic
poses a challenge to healthcare systems, businesses and communities around the world. Banks and financial
institutions are confronting a new reality as the ramification of the crisis is beginning to reverberate across the industry.
In the months to come we will see surge in the use of online and self-service channels, new regulations will come
into effect, there will be a boom in automation and increased need for digitized capabilities. As financial institutions
prepare to meet these challenges, your company’s solutions, are designed to help customers and prospects navigate
such changes successfully. Our value proposition for the financial services industry remains very relevant today and
even more so as global economies begin to recover. Our robust, IT infrastructure and processes enable us to deliver
our support, services and software, anytime anywhere.
Oracle Financial Services Software is committed to empowering financial institutions to become more responsive, agile,
collaborative, and insightful in what they do. Our solutions are architected to enable financial institutions, establish new
business models, operate flexibly, respond proactively to market conditions, create new business opportunities and
drive growth. Your Company's Analytical Applications power the top financial services companies in the world across
Risk, Finance, Regulatory Compliance and Anti Financial Crime. These products are built on an industry-leading
integrated data architecture that ensures sanctity of the source and curate data for reusability. These products enable
financial institutions not just meet their Compliance and Regulatory needs, but also help monetize the investment in
driving business benefit and improve overall profitability.
Business overview
Oracle Financial Services Software Limited, majority owned by Oracle, is a world leader in providing IT solutions to the
financial services industry. With its experience of delivering value-based IT solutions to global financial institutions,
Oracle Financial Services Software understands the specific challenges that financial institutions face: the need
for building customer intimacy and competitive advantage through cost-effective solutions, while simultaneously
adhering to the stringent demands of a dynamic regulatory environment.
Our mission is to enable financial institutions to excel through the effective use of information technology. Our
dedicated research and development centers excel in innovation by developing world class products that strive to
be ahead of the market. We offer financial institutions the world’s most comprehensive and contemporary banking
applications and a technology footprint that addresses their complex IT and business requirements.
51
We offer a comprehensive suite of offerings encompassing retail, corporate, and investment banking, funds, cash
management, trade, treasury, payments, lending, asset management, compliance, enterprise risk and business
analytics, anti-financial crime among others. The products business (comprising product licensing, consulting and
support) is our principal business segment. We also have two smaller business segments comprising of PrimeSourcing,
our consulting services business (comprising IT application and technology services) and the business process
outsourcing (BPO) services business.
These segments are described in detail below:
Products
The suite of solutions delivering a compelling Digital Experience, Digital Engagement and enabling
comprehensive Data Management.
Oracle FLEXCUBE is a complete banking platform for retail, corporate and investment banking, consumer lending,
asset management, and investor servicing including payments. Oracle FLEXCUBE can help banks jumpstart digital
transformation and leapfrog their capabilities to stay relevant, competitive and compliant in a fast-evolving industry.
With its modern, digital, shrink wrapped, pre-configured, interoperable, scalable and connected capabilities, Oracle
FLEXCUBE Universal Banking can help catapult banks to the fore front of digital innovation and leadership.
Oracle FLEXCUBE equips banks for the era of physical and digital by helping them drive higher revenues, lower costs
and improving service levels and convenience. It offers the right mix of digital self-service and assisted engagement
capabilities, coupled with robust product processing functionalities that enable banks enhance customer experiences.
Enabled by the latest User Experience and technologies like Machine Learning, Natural Language Processing
and Intelligent Assistants, Oracle FLEXCUBE empowers bankers with new insights, predictions and capabilities to
personalize customer engagement while automating and streamlining routine processes. Oracle FLEXCUBE offers
banks the agility to adapt architectures to suit different transformation paths and diverse operating / business models
through a componentized architecture that is increasingly built on micro services. Its 1600 + APIs and Business
Services enables banks to open up data and services to third party developers to drive new ways to collaborate and
build revenue streams in the age of Open Banking.
Oracle FLEXCUBE offers comprehensive functional capabilities across multiple lines of business and supports new
business capabilities and functionalities, regulatory compliances and country specific localizations. It enables banks
to standardize operations across multiple countries, transform their processes, address niche business requirements,
respond faster to market, and manage compliances. Oracle FLEXCUBE offers out of the box support for multiple
standards and regulatory directives such as SWIFT GPI, SEPA Instant, PSD2, PAD, and FATCA phase III etc. and includes
data privacy features.
Oracle Financial Services Analytical Applications (OFSAA) is a suite of industry leading applications catering to
the critical areas of Risk, Finance, Treasury, Front office, Regulatory Reporting and Compliance, including the areas of
Financial Crime. These products are built on a unified data architecture leveraging new age technologies like Artificial
Intelligence (AI)/ Machine Learning (ML) and Graph, to deliver high performance.
Oracle Financial Services Analytical Applications Infrastructure (AAI) provides state of the art tools/frameworks/
libraries that support building OFSAA analytical applications and power their runtime across Risk, Finance, Treasury
and Financial-Crime-&-Compliance domains. AAI’s compute engines process data at scale exploiting hybrid compute
engines that include Big-Data cluster. AAI supports business logic that is both deterministic and model based with
powerful predictive analytics framework that delivers the foundation for Artificial Intelligence (AI)/Machine Learning
(ML) and augmented learning. AAI’s customer footprint is a testament to its enterprise nature and ability to address
regulatory needs, real-time responsiveness and complex decision support systems for financial institutions across the
globe. AAI’s portfolio has approved global patents, with both US-Patents & Trademarks Office (US-PTO) and European
Union Patents Office (EPO) gives it unique advantage.
Oracle Financial Services Financial Crime and Compliance Management (FCCM) suite comprises of a modern,
comprehensive, and extensible suite of applications that enable financial institutions with advanced capabilities to
effectively combat financial crime and comply with regulations while enhancing operational efficiency. Oracle FCCM’s
key offerings span across the entire financial crime and compliance management value chain including streamlined
Know Your Customer checks and Sanctions screening, Anti Money Laundering (AML) Transaction Monitoring
and Detection, efficient Enterprise Case Management, timely Compliance Regulatory Reporting and Management
dashboards. The offerings are augmented by a comprehensive Data Management and Advanced Analytics capabilities
to manage complex new generation threats. The key advanced analytics capabilities include an integrated analytics
workbench for machine learning based scenario modelling, and embedded graph analytics-based data visualizations
enabling discovery of hidden networks, entity resolution, advanced case investigations, and network pattern analysis.

Oracle Financial Services Enterprise Risk Management applications are industry-leading products that enable
financial institutions to address a wide range of issues including:
- Support continuous compliance for complex Basel III post-crisis reforms covering Revised Standardized
Approach for Credit Risk, Market Risk, FRTB, Counterparty Credit Risk, Large Exposures and Leverage Ratio
guidelines due to be adopted by various jurisdictions from 2023 onwards.
- Managing risk across Treasury with integrated solutions covering interest rate risk, liquidity risk and funds transfer
pricing.
- Improving forecasting and predictive modeling capabilities thru pre-built models that leverage Artificial
Intelligence and Machine Learning methods.
- Unified IFRS 9/CECL solution using a modularized design approach, which allows for easier solution integration
and client-specific extensions and enables FIs to perform granular calculations on a common dataset.
- Oracle Financial Services Hedge management and IFRS valuation products caters to Hedge Management,
IFRS9 based Hedge Accounting standards on Micro hedging, Fair valuations using inbuilt methods, IFRS13 Fair
Valuation Level Allocation, and Disclosure requirements of IFRS7.
Oracle Financial Services Analytical Applications for Customer Insight suite of products comprise of Banking &
Insurance Performance Analytics and Retail Customer Analytics products which are front office applications aimed at
promoting topline growth through data driven insights into customer behavior. The solution helps improve top-line
growth with improved profitability by managing the profitable customer journeys and their lifecycle with the bank. The
banks have an added flexibility of deploying the Performance Analytics solution on cloud.
Oracle Banking Digital Experience brings new comprehensive capabilities to banks seeking a digital transformation,
customer and product acquisitions, business services, including payments innovation and customer financial insight.
Built on open standards architecture, it provides a full range of business essentials out-of-the-box, including digital
account and loan origination, digital wallets and mobile payments. It also offers self service capabilities for corporate
customers in the areas of supply chain finance, corporate lending and facility management, liquidity and virtual
account management, and trade finance and cash management.
Oracle Banking APIs are targeted at helping banks embarking on an Open API journey. Banks can take advantage of
ready to consume APIs to accelerate their initiatives to tap new opportunities presented by PSD2 and Open Banking.
Oracle Banking APIs enable banks to build seamless partnerships with third-party technology organizations, easily
integrate with corporate client applications and reduce the time between API ideation and delivery.
Oracle Banking Liquidity Management enables banks to run a centralized liquidity management solution. The
solution supports traditional liquidity management methods like pooling and sweeping as also the advanced methods
such as interest optimization. The solution enables banks to provide in-depth visibility into cash positions of customers,
thereby helping them manage their daily liquidity in a consolidated and effective manner. The solution also provides
advanced techniques such as additional avenues for higher yield investments with flexibility to cater to country
regulatory restrictions, which in turn helps businesses to remain competitive and grow steadily despite all odds.
Oracle Banking Virtual Account Management provides comprehensive support for banks to enable their corporate
customers to manage their banking accounts efficiently. Pre-integrated with Oracle Banking Liquidity Management,
Oracle Banking Payments and Oracle FLEXCUBE DDA, the solution helps banks offer comprehensive support for
virtual accounts. With Oracle Banking Virtual Account Management, corporates can ensure rationalization of number
of real accounts and at the same time manage corporate liquidity efficiently.
Oracle Banking Corporate Lending is an end-to-end digitally enabled lending solution. The solution enables easy
integration with banks’ internal and external systems of customers, partner banks and agencies which supports open
interface (Open API) standards and eliminates processing overheads to deliver a faster loan processing. It allows banks
to embrace digital capabilities across the enterprise from credit management, origination to servicing. Its flexible
reporting capability and its ability to integrate with vendors and credit bureaus enables banks to comply effectively
with new regulations. The solution provides banks the capability to finance large and complex loan requirements of
corporate customers either through bilateral loans, syndicated loans by partnering with other banks or secondary
loan trading. It enables banks to offer flexible loan terms such as revolving and non-revolving commitments, flexible
interest rates and fees, different payments options, multiple rollover options and flexible disbursement facility.
Oracle Banking Corporate Lending Process Management is built to accelerate the process of origination and
servicing of corporate loans, enhance digital experience and empowers banks to address customers’ financing needs.
Its flexible servicing capabilities enables banks to undertake revolving and non-revolving commitments, manual and
automated payments, flexible rollover options and multiple types of disbursement facilities. Banks can now easily
close loans with an efficient workflow that ensures settlements and legal proceeding are undertaken smoothly. An
Open API enabled solution, Oracle Banking Corporate Lending Process Management allows banks to create new and
connected experiences for their customers.
53
Oracle Banking Credit Facilities Process Management is a comprehensive credit management solution that enables
banks to accelerate credit origination, pre-qualify wide variety of credit lines and enhance customer experience and
track exposures to customers in real-time and mitigate business risks. The solution allows for periodic re-evaluation of
collaterals and customers’ credit worthiness throughout the credit lifecycle. Banks can also proactively track utilizations,
collateral leverages, credit and risk scores, and covenants to ensure customers are meeting compliance requirements.
Oracle Banking Enterprise Limits and Collateral Management offers a single source for managing exposure across a
business portfolio. It enables centralized collateral management, limits definition, tracking and exposure measurement
for effective exposure management and resource utilization.
Oracle Banking Trade Finance Process Management provides comprehensive support for banks to enable their
corporate customers manage trade finance operations efficiently. Banks can help corporates improve their trade service
quality levels, expand trade operations to a global scale and ensure compliance with regulatory requirements without
incurring additional costs. With Oracle Banking Trade Finance Process Management, banks can enable corporates to
manage a wide range of trade services including guarantees, documentary credit and collections through intelligent
automation.
Oracle Banking Supply Chain Finance is a comprehensive digitized end-to-end solution that supports the full
lifecycle of supply chain finance across receivables and payables offering supplier centric financing and buyer centric
financing.
Oracle Banking Payments helps financial institutions improve straight through processing, support real-time and
immediate payment settlement, and reduce time-to-market while driving innovation. The solution is designed to
enable banks to rapidly respond to evolving standards while maintaining complete operational control and providing
high fidelity insight. Oracle Banking Payments supports global as well as local payment standards.
Oracle Financial Services Lending and Leasing combines the power of Oracle’s comprehensive, industry-leading
lending, and leasing solution with the simplicity, elasticity and security of Oracle Cloud and empowering lending
institutions to grow and improve profitability of their core lending business. The solution supports complete consumer
lending operations and lifecycle processing from origination to servicing, collections, delivering accurate, actionable
information from a single data source to help lending institutions make faster and more informed decisions about
loans, reduce risk, effectively manage the loan life cycle and manage delinquencies and losses. Its intuitive interface,
navigation and context-based account and customer sessions help boost user productivity.
Oracle FLEXCUBE Investor Servicing is a process enabled-transfer agency and investor servicing solution. It helps
financial institutions manage the complete fund lifecycle and reduce operational costs through process automation
across fund structures, intermediary hierarchies, and investors. Oracle FLEXCUBE Investor Servicing, an ISO 20022
compliant solution, enables enhanced STP processing through support for a wide variety of SWIFT NET Fund messages.
With a comprehensive business rules engine for products such as hedge funds, mutual funds and investment linked
products and fee structures, Oracle FLEXCUBE Investor Servicing allows fund management companies to configure
and launch new products rapidly.
Oracle Banking Platform is a comprehensive suite of business applications for large global banks. Oracle Banking
Platform is designed to help banks respond strategically to today’s business challenges and progressively transform
their business models and processes, driving productivity improvements across both front and back offices and
reducing operating costs. The solution supports banks as they grow their businesses through new distribution
strategies, including multi-brand or white labeling, to tap new markets and enterprise product origination supporting
multi-product and packages to drive an increased customer-to-product ratio. The solution provides a holistic view of
the customer relationship across all products and services.
Oracle Banking Platform is designed as a native service-oriented architecture (SOA) platform, helping banks implement
key enterprise services, deliver and enrich channel capabilities, drive process improvements and tie it in with their
existing applications and technology landscape. Through pre-integrated enterprise applications and the underlying
Oracle technology, the solution can also help to reduce in-house integration and testing efforts, ultimately, reducing
IT costs and improving time-to-market. Oracle Banking Platform provides a comprehensive suite of applications that
makes the replacement of core systems viable for large banks, enabling strategic choices as well as providing a high
level of flexibility and value.
Oracle Banking Enterprise Product Manufacturing is a comprehensive suite of product master data management
capability for the banking domain. It provides functionality to define financial products under current accounts and
savings account, loans, term deposits, credit cards, investment and retirement accounts and insurance (consumer
credit, lenders mortgage and home and content insurance types). Oracle Banking Enterprise Product Manufacturing
helps banks create innovative products faster, add features to existing products, and set prices based on customer
relationships. By designing differentiated product bundles, banks can optimize their product portfolio.
Oracle Banking Enterprise Collections is an enterprise-class collections platform designed to assist financial
institutions with managing repayments of their consumer loan portfolios. The solution enables financial institutions in

identification of delinquent accounts, and accurate tracking and monitoring of delinquent accounts with high standards
of efficiency. The solution covers the delinquent life-cycle of a consumer loan starting from the identification of the
symptoms of delinquency to tracking delinquency and impairment.
Oracle Banking Enterprise Originations is an enterprise-class platform covering the entire origination process from
prospecting through fulfillment. Oracle Banking Enterprise Originations enables banks to simplify complex origination
processes and deliver seamless customer experience throughout the origination lifecycle. The solution operates
across channels, providing a common origination process for both assisted and self-service customers.
Services
Oracle Financial Services PrimeSourcing offers a comprehensive suite of consulting and application services
addressing retail, corporate, and investment banking, funds, cash management, trade, treasury, payments, lending,
private wealth management, asset management, compliance, enterprise risk and business analytics. PrimeSourcing
offerings encompass end-to-end consulting partnership, providing comprehensive business and technology solutions
that enable financial services enterprises to improve process efficiencies, optimize costs, meet risk and compliance
requirements, define IT architecture, and manage the transformation process. PrimeSourcing services are rendered
through centers located in India, by onsite teams operating at the customers’ premises and on-site centers located in
other parts of the world. With customer demands changing rapidly to outcome transformational engagements, there
is a clear opportunity for PrimeSourcing to integrate its deep domain knowledge with the product offerings of Oracle,
thereby providing a compelling value.
Oracle Business Process Outsourcing Services (BPO) offerings excel in providing cost effective and high quality
BPO services ranging from complex back-office work to contact center services for the banking, capital markets,
insurance and asset management domains. This comprehensive ecosystem of BPO services is backed by a mature
process and consulting framework. The BPO offerings are ISO 9001 certified for quality management and ISO 27001
certified for information security management.
Our revenues
Our revenues comprise three streams - license fees, annual maintenance contract (post contract support - PCS) fees
for our products and consulting fees in respective business segments.
License fee
Our standard licensing arrangements for products provide the bank a right to use the product up to a limit on number
of users or sites or such other usage metric upon the payment of a license fee. The license fee is a function of a variety
of quantitative and qualitative factors, including the number of copies, users, modules and geographical locations
supported. The licenses are perpetual, non-exclusive, personal, non-transferable and royalty free.
Annual maintenance contract (PCS) fees

Customers typically sign an Annual Maintenance Contract with us under which, we provide technical support,
maintenance, problem resolution and upgrades for the licensed products. These support agreements typically cover
a period of twelve months and are renewed for further period of twelve months.
Consulting fee
We provide consulting services to our customers. The customer is typically charged a service fee on either a fixed price
basis or a time and material basis based on the professional efforts incurred and associated out of pocket expenses.
Both PrimeSourcing and BPO businesses comprise only of consulting services. In products business, our customers
can optionally avail our consulting services related to the implementation of products at their sites, integration with
other systems or enhancements to address their specific requirements.
The revenues generated from license fees and consulting services rendered by us depends on factors such as the
number of new customers added, milestones achieved, implementation effort, etc. Therefore, such revenues typically
vary from quarter to quarter and year to year. The annual maintenance contracts generate steady revenues and could
grow to the extent that new customers are entering a support agreement.
Analysis of our consolidated financial results

The following discussion is based on our audited consolidated financial statements, which have been prepared
in accordance with Indian Accounting Standards (referred to as “Ind AS”) as prescribed under Section 133 of the
Companies Act, 2013 (the ‘Act’) read with relevant Rules of the Companies (Indian Accounting Standards) Rules, 2015
(as amended).
The consolidated financial statements include Oracle Financial Services Software Limited (“the Company”), its
subsidiaries and Controlled Trust (together referred to as “OFSS group” as described in note 1 to the consolidated
financial statements) (“the Group”) as at March 31, 2020.
55
You should read the following discussion of our financial position and results of operations together with the detailed
consolidated Ind AS financial statements and the notes which form integral part of such financial statements. Our
fiscal year ends on March 31 of each year.
Performance summary
Year ended March 31, 2020 Products Services BPO Services Total
Revenue 43,145.69 4,275.92 1,191.15 48,612.76
Operating expenses (21,786.24) (3,497.92) (803.05) (26,087.21)
Unallocable expenses (1,776.13)
Income from operations 21,359.45 778.00 388.10 20,749.42
Operating margin 50% 18% 33% 43%
Profit for the year 14,622.17
Profit margin 30%
Year ended March 31, 2019

Revenue 43,527.29 4,945.07 1,116.67 49,589.03
Operating expenses (22,061.72) (4,309.46) (793.30) (27,164.48)
Income from operations 21,465.57 635.61 323.37 20,908.95
Operating margin 49% 13% 29% 42%
Profit margin 28%
Our total revenues in the fiscal year ended March 31, 2020 were ₹ 48,612.76 million, decrease of 2% over our total
revenues of ₹ 49,589.03 million in the fiscal year ended March 31, 2019. The decrease in revenues was primarily
attributable to decrease in the revenues from our services business.
Income from operations in fiscal 2020 was ₹ 20,749.42 million representing decrease of 1% from ₹ 20,908.95 million
in fiscal 2019. The profit for the year in fiscal 2020 was ₹ 14,622.17 million, as against ₹ 13,858.98 million in fiscal
2019.
Revenues from operations

Products revenues
Our products revenues represented 89% and 88% of our total revenues in the fiscal year ended 2020 and 2019
respectively. Our products revenues were ₹ 43,145.69 million in the fiscal year ended March 31, 2020, decrease of
1% from ₹ 43,527.29 million during the fiscal year ended March 31, 2019.
The percentages of our revenues are as follows for different streams:
Year ended Year ended

March 31, 2020 March 31, 2019
License fees 13% 12%
Consulting fees 55% 57%
PCS fees 32% 31%
Total 100% 100%
Services revenues
Our services revenues represented 9% and 10% of our total revenues for the fiscal year ended March 31, 2020 and
March 31, 2019 respectively. Our services revenues were ₹ 4,275.92 million in the fiscal year ended March 31, 2020,
decrease of 14% from ₹ 4,945.07 million in the fiscal year ended March 31, 2019.
The percentage of total services revenues from time and material contracts was 68% in fiscal year 2020 and 69% in
fiscal year 2019, with the remainder of our services revenues attributable to fixed price contracts.

Business Process Outsourcing (BPO) Revenues
Our revenues from BPO services in the fiscal year ended March 31, 2020 were ₹ 1,191.15 million, an increase of 7%
over our revenues from BPO services of ₹ 1,116.67 million in the fiscal year ended March 31, 2019.
Finance income and other income, net

Our finance and other income primarily comprises of interest on bank deposits and foreign exchange gain/loss.
Our finance and other income in the fiscal year ended March 31, 2020, was ₹ 1,773.39 million, as compared to
₹ 1,760.92 million in the fiscal year ended March 31, 2019. The higher interest income on bank deposits of ₹ 1,597.02
million is on account of higher surplus cash balance resulting in an overall increase in finance and other income.
Expenses
Operating expenses
The operating expenses consist of costs attributable to the compensation expenses for employees, project related
travel expenses, professional fees paid to vendors, the cost of application software for internal use, selling and
marketing expenses (including commissions payable to our partners), research and development expenses, product
advertising and marketing expenses, finance cost, contribution against Corporate Social Responsibility and overhead
expenses associated with support functions such as human resources, finance, facilities and infrastructure, IT along
with depreciation and amortization. We recognize these expenses as incurred.
Research costs are expensed as incurred. Software product development costs are expensed as incurred unless
technical feasibility of project is established, future economic benefits are probable, the OFSS group has an intention and
ability to complete and use or sell the software and the cost can be measured reliably. Software product development
costs incurred subsequent to the achievement of technical feasibility are not material and are expensed as incurred.
Employee costs
Our employee costs related expenditure decreased by 4% to ₹ 21,178.01 million in the fiscal year ended
March 31, 2020 from ₹ 21,958.10 million in the fiscal year ended March 31, 2019. Employee costs relate to salaries
and bonuses paid to employees.
Travel related expenses

Our travel related expenditure decreased by 9% to ₹ 2,255.81 million in the fiscal year ended March 31, 2020 from
₹ 2,466.95 million in the fiscal year ended March 31, 2019. Travel costs relate to airfare, accommodation and other
related expenses incurred on travel of our employees on projects, sales and marketing and for internal assignments.
Professional fees
Our professional fees related expenditure decreased by 3% to ₹ 1,452.45 million in the fiscal year ended
March 31, 2020 from ₹ 1,492.07 million in the fiscal year ended March 31, 2019 representing 3% of revenue from
operations for the year ended March 31, 2020. Professional fees include services hired from external consultants for
various projects.
Finance cost
Finance cost for the fiscal year ended March 31, 2020 is ₹ 473.65 million on account of interest on lease liability and
income tax.
Other expenses
Our other expenditure decreased by 35% to ₹ 1,439.61 million in the fiscal year ended March 31, 2020 from
₹ 2,225.79 million in the fiscal year ended March 31, 2019. The other expenses represent 3% and 4% of revenue
from operations for years ended March 31, 2020 and 2019 respectively. Other expenses primarily consist of
Corporate Social Responsibility expenditure, various facilities costs, application software, communication and other
miscellaneous expenses.
Depreciation and amortization

Depreciation and amortization comprises of depreciation on Property, plant and equipment and on Right-of-use
asset. Our depreciation and amortization charge was ₹ 1,063.81 million and ₹ 537.17 million for the year ended
March 31, 2020 and March 31, 2019 representing 2% and 1% of revenues from operations respectively.
Operating Margin
Operating profit for the year ended March 31, 2020 is ₹ 20,749.42 million as against ₹ 20,908.95 million during the
year ended March 31, 2019.
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Income taxes
The Company has exercised the option permitted under Section 115BAA of the Indian Income Tax Act, 1961 as introduced
by The Taxation Laws (Amendment) Ordinance, 2019. Accordingly, the Company has recognized provision for income
tax and re-measured its deferred tax asset at the rate prescribed in the said section. Our provision for income taxes in
the fiscal year ended March 31, 2020 was ₹ 7,900.64 million as against ₹ 8,810.89 million in the fiscal year ended
March 31, 2019. Our effective tax rate was 35% and 39% in the fiscal year 2020 and 2019, respectively. Income taxes also
include foreign taxes representing income taxes payable overseas by us in various countries.
Profit for the year

As a result of the foregoing factors, net profit has increased by 6% to ₹ 14,622.17 million in fiscal year 2020 from
₹ 13,858.98 million in fiscal year 2019.
Analysis of our unconsolidated results

The following discussion is based on our audited unconsolidated financial statements, which have been prepared in
accordance with Ind AS as prescribed under Section 133 of the Companies Act, 2013 (the ‘Act’) read with relevant
rules of the Companies (Indian Accounting Standards) Rules, 2015 (as amended).
You should read the following discussion of our financial position and results of operations together with the detailed
unconsolidated Ind AS financial statements and the notes which form integral part of such financial statements. Our
fiscal year ends on March 31 of each year.
Performance summary
Year ended March 31, 2020 Products Services Total
Revenue from operations 31,668.22 3,586.86 35,255.08
Operating expenses (13,588.88) (2,183.01) (15,771.89)
Unallocable expenses – – (1,088.99)
Income from Operations 18,079.34 1,403.85 18,394.20
Operating margin 57% 39% 52%
Profit margin 45%
Year ended March 31, 2019

Operating expenses (13,462.46) (2,574.78) (16,037.24)
Unallocable expenses – – (1,297.08)
Income from Operations 18,423.89 1,347.84 18,474.65
Operating margin 58% 34% 52%
Profit margin 36%
Our total revenues in fiscal 2020 were ₹ 35,255.08 million as against ₹ 35,808.97 million in fiscal 2019.
Income from operations in fiscal 2020 was ₹ 18,394.20, as against ₹ 18,474.65 million in fiscal 2019. The profit for
the year in fiscal 2020 was ₹ 15,826.56 million, as against ₹ 12,824.70 million in fiscal 2019.
Revenues from operations

Products revenues
Our products revenues represented 90% and 89% of our total revenues in the fiscal year 2020 and 2019 respectively.
Our products revenues were ₹ 31,668.22 million and ₹ 31,886.35 million in the fiscal year ended March 31, 2020
and March 31, 2019 respectively.

The percentages of our products revenues are as follows for different streams:

March 31, 2020 March 31, 2019
License fees 14% 13%
Consulting fees 50% 52%
PCS fees 36% 35%
Total 100% 100%
Services revenues
Our services revenues represented 10% and 11% of our total revenues in the fiscal year 2020 and 2019 respectively.
Our services revenues were ₹ 3,586.86 million and ₹ 3,922.62 million in the fiscal year ended March 31, 2020 and
March 31, 2019 respectively.
The percentage of total services revenues from time and material contracts was 71% in both the fiscal years 2020 and
2019, with the remainder of 29% of our services revenues attributable to fixed price contracts.
Finance income and other income, net

Our finance and other income primarily comprises of interest on bank deposits and foreign exchange gain/loss.
Our finance and other income were ₹ 1,691.59 million in the fiscal year ended March 31, 2020, as compared to
₹ 1,389.50 million in the fiscal year ended March 31, 2019. A higher surplus cash balance has resulted in higher
interest income on bank deposits of ₹ 1,448.26 million for the fiscal year ended March 31, 2020.
Expenses
Operating expenses
The operating expenses consist of costs attributable to the compensation expenses for employees, project related
travel expenses, professional fees paid to vendors, the cost of application software for internal use, selling and
marketing expenses, research and development expenses, finance cost, bad debts, impairment loss (reversed) on
contract assets, contribution against Corporate Social Responsibility and overhead expenses associated with support
functions such as human resources, finance, facilities and infrastructure, IT along with depreciation and amortization.
We recognize these expenses as incurred.
technical feasibility of project is established, future economic benefits are probable, the Company has an intention and
ability to complete and use or sell the software and the cost can be measured reliably. Software product development
costs incurred subsequent to the achievement of technical feasibility are not material and are expensed as incurred.
Employee costs
Our employee costs related expenditure increased to ₹ 11,909.23 million in the fiscal year ended March 31, 2020
from ₹ 11,896.09 million in the fiscal year ended March 31, 2019. Employee costs relate to salaries and bonuses paid
to employees in India and at overseas branches, stock compensation charge to eligible employees along with staff
welfare activities for employees.
Travel related expenses

Our travel related expenditure decreased by 8% to ₹ 1,593.78 million in the fiscal year ended March 31, 2020 from
₹ 1,741.70 million in the fiscal year ended March 31, 2019. Travel costs relate to airfare, accommodation and other
related expenses incurred on travel of our employees on projects, sales and marketing and for internal assignments.
Professional fees
Our professional fees related expenditure decreased by 4% to ₹ 1,311.47 million in the fiscal year ended
March 31, 2020 from ₹ 1,366.75 million in the fiscal year ended March 31, 2019 representing 4% of revenue from
operations for the years ended March 31, 2020 and March 31, 2019. Professional fees include services hired of
external consultants for various projects and support services.
Finance Cost
Our finance cost expenditure was ₹ 80.18 million in the fiscal year ended March 31, 2020 on account of Interest on
lease liability and income tax.
59
Other expenses
Our other expenditure decreased by 38% to ₹ 1,134.50 million in the fiscal year ended March 31, 2020 from
₹ 1,827.80 million in the fiscal year ended March 31, 2019. The other expenses represent 3% and 5% of revenue
from operations for the year ended March 31, 2020 and year ended March 31, 2019 respectively. Other expenses
primarily consist of Corporate Social Responsibility expenditure, provision for diminution in value of investment,
bad debts and Impairment loss (reversed) on contract assets, various facilities and infrastructure costs, application
software, communication, auditors’ remuneration and other miscellaneous expenses.

Depreciation and amortization charge comprises of depreciation on property, plant and equipment and on right-of-
use asset. Our depreciation and amortization charge was ₹ 831.72 million and ₹ 501.98 million for the year ended
March 31, 2020 and 2019 representing 2% and 1% of revenues from operations respectively.
Operating Margin
Operating profit for the year ended March 31, 2020 is ₹ 18,394.20 million as against ₹ 18,474.65 million during the
year ended March 31, 2019. Our operating profit margin was 52% for both the fiscal years 2020 and 2019.
Income taxes
The Company has exercised the option permitted under Section 115BAA of the Indian Income Tax Act, 1961 as
introduced by The Taxation Laws (Amendment) Ordinance, 2019. Accordingly, the Company has recognized provision
for income tax and re-measured its deferred tax asset at the rate prescribed in the said section. Our provision for
income taxes in the fiscal year ended March 31, 2020, was ₹ 4,259.23 million as against ₹ 7,039.45 million in the
fiscal year ended March 31, 2019. Our effective tax rate was 21% and 35% for the fiscal years ended March 31, 2020
and March 31, 2019 respectively. Income taxes also include foreign taxes representing income taxes payable overseas
by the Company in various countries.
Profit for the year

As a result of the foregoing factors, net profit for the year ended March 31, 2020 is ₹ 15,826.56 million as against
₹ 12,824.70 million during the year ended March 31, 2019.
Other metrics
Key financial ratios
The following table summarizes significant changes in key financial ratios for the year ended March 31, 2020 and
March 31, 2019.
Consolidated Unconsolidated
2020 2019 2020 2019
Financial Performance
Operating profit / revenue from operations 43% 42% 52% 52%
Profit after tax / revenue from operations 30% 28% 45% 36%
Financial Position
Current Ratio 6.3 times 4.1 times 9.6 times 5.6 times
Return on total equity 22% 28% 29% 33%
Days of sales outstanding 63 days 63 days 41 days 48 days
Trade receivables
As per Consolidated financials, trade receivables as of fiscal March 31, 2020 and 2019 were ₹ 9,253.66 million and
₹ 9,474.76 million respectively. As per unconsolidated financials trade receivables as of fiscal March 31, 2020 and
2019 were ₹ 4,154.31 million and ₹ 4,866.30 million respectively.

The Group periodically reviews its trade receivables outstanding as well as the ageing, quality of the trade receivables,
customer relationship and the history of the client. The following table represents the ageing of our trade receivables:
Ageing in days Consolidated Unconsolidated

2020 2019 2020 2019
0-180 93% 88% 98% 71%
More than 180 7% 12% 2% 29%
Total 100% 100% 100% 100%
Geographic breakup of revenues

The following table represents the percentage breakup of our consolidated and unconsolidated revenues for our
products and services business by region:
Year ended March 31, 2020 Year ended March 31, 2019
Products Services Total Products Services Total
Revenues Revenues Revenues Revenues Revenues Revenues
Consolidated
Americas (NAMER) 28% 73% 34% 29% 69% 33%
Europe, Middle East, Africa (EMEA) 37% 17% 34% 37% 22% 35%
Asia Pacific (JAPAC) 35% 10% 32% 34% 9% 32%
Total 100% 100% 100% 100% 100% 100%
Unconsolidated
Americas (NAMER) 23% 70% 27% 23% 67% 28%
Europe, Middle East, Africa (EMEA) 43% 18% 41% 42% 22% 39%
Asia Pacific (JAPAC) 34% 12% 32% 35% 11% 33%
Total 100% 100% 100% 100% 100% 100%
Customer concentration
The percentage of total revenues during fiscal years 2020 and 2019 that we derived from our largest customer,
largest five customers and largest ten customers on consolidated and unconsolidated basis is provided in the
accompanying table. The Company contracts end customers in several countries through the local subsidiary of
Oracle Corporation. Entities under common control are considered as a single customer for the purpose of reporting
customer concentration.
Products Revenues Services Revenues Total Revenues

2020 2019 2020 2019 2020 2019
Consolidated
Largest customer 48% 52% 18% 15% 44% 47%
Top 5 customers 61% 61% 57% 55% 56% 57%
Top 10 customers 67% 66% 78% 77% 62% 62%
Unconsolidated
Largest customer 77% 74% 98% 98% 79% 77%
Top 5 customers 89% 89% 100% 100% 90% 90%
Top 10 customers 93% 93% 100% 100% 94% 94%
Internal control systems and their adequacy

Oracle Financial Services Software group has in place adequate systems for internal control commensurate with the
size of the business operations of the Company and documented procedures covering all financial and operating
functions. These systems are designed to provide reasonable assurance with regard to maintaining adequate controls,
monitoring economy and efficiency of operations, protecting assets from unauthorized use or losses, and ensuring
reliability of financial and operational information. The Group continuously strives to align all its processes and controls
with global best practices.
61
Opportunities and threats
The financial services industry is witnessing a paradigm shift towards unparalleled customer choice and convenience
with next generation digital technologies. Several innovative operating and business models are emerging driven by
shifts in the way both retail and corporate customers consume financial services. Oracle is committed to understanding
the needs of its customers and helping them transform their systems with front to back solutions and digital capabilities
that enable them to not just respond quickly and effectively to changing market conditions and dynamics, but to also
create business opportunities and drive growth. While Geo-political issues are impacting mobility and the cost of
doing business, our deep domain expertise, strong partner network, and high brand value, remain our strengths;
resulting in continued momentum of new customer additions.
Our opportunities come from:

- Financial Institutions looking to leverage new technologies and create alternative revenue streams
- Evolving regulatory mandates driving IT spend
- Our expanding solution footprint with new solutions for Financial Crime Prevention and Corporate Banking
The opportunities also throw up new challenges:
- Increased competition from vendors with digital solutions and new players
- Negative pressure on pricing as customers seek to streamline their IT budgets
- Uncertainties caused by COVID-19 pandemic
Liquidity and capital resources

Our capital requirement relate primarily to financing the growth of our business. We have historically financed the
majority of our working capital, capital expenditure and other requirements through our operating cash flow. During
fiscal year 2020 and 2019, we generated cash from operations of ₹ 15,218.19 million and ₹ 13,796.12 million
respectively as per consolidated financials and ₹ 14,846.69 million and ₹ 10,526.77 million respectively as per
unconsolidated financials.
We are a zero-debt company. We expect that our primary financing requirements in the future will be capital
expenditure and working capital requirements in connection with the expansion of our business. We believe that the
cash generated from operations will be sufficient to satisfy our currently foreseeable capital expenditure and working
capital requirements.
Human capital
We are a globally integrated organization having seamless team-work with collaboration and a good understanding
of the nuances of different geographical cultures with a strong backbone of our own Company culture and business
conduct guidelines.
As at March 31, 2020, the Company had 6,474 employees (March 31, 2019 - 6,503) and the OFSS Group had 8,001
employees (March 31, 2019 - 8,054).
Talent acquisition and retention

We recruit graduates and post-graduates from top engineering and business schools. We also hire domain experts
from the banking industry creating a right mix of employees with functional and technology expertise. We also aim
to be the best in class inclusive employer having employees across the regions in all the markets we operate. We
maintain above Industry standard for gender hiring as well.
We invest in continuous learning of our employees and engage them in programs that develop agility to work in a
constantly transforming ecosystem. The blend of functional knowledge and technical expertise, coupled with in-house
training and real-life experiences in working with financial institutions, makes our employees unique. We leverage the
virtual libraries across the organization and also use on-line learning from leading learning portals.
We have in-house curiosity club and work on creating patents which are unique to our domain. We encourage
employees to author peer-reviewed technical papers and business case studies. We conduct learning games such as
‘Battle of Brains’ to encourage employees look at incremental innovation for solving real business issues.
Employee experience and well-being

We also invest in employee health and well-being through a variety of programs. We have a comprehensive Employee
Assistance Program for helping employees cope with the various life stages and changes with resilience and acceptance
as a person. We have crèche services for the wards of our woman employees at close quarters to the offices to enable
them to get back to regular work faster and easier. Our woman employees are part of the global Oracle Woman’s
Leadership initiative and undergo specialized programs for developing future woman leaders.

Performance management and career development
Our performance review system helps us identify strengths of our employees as well as areas of improvement. The
employees go through learning plans that address the areas of improvement and a talent review program that helps
build a talent pipeline. The reviews also help identify the top talent who are nurtured with a personalized leadership
development program at both, local and global levels, working with the best in class Universities and thought leaders.
Our Oracle University also helps us get training in both technology and functional domains. All our employees are
continuously equipped with the necessary learning which helps them to address the changing functional and technical
environments, and evolving customer requirements.
Rewards and recognition

Our reward mechanism is geared towards recognizing the achievements. We have a number of recognition programs
which recognize the achievements both at a specific project level as on the basis an overall contribution to the
organization goals. Our Pacesetter Awards program recognizes individual excellence and such high achievers get
nominated for high-end, future focused learning from premium learning agencies.
Risks and concerns

The Company has a robust plan for managing the risks faced in its global operations. The Risk Management Committee
reviews the risks, possible impact and the mitigation plan. Listed below are the some of the major risks, their impact
and the mitigation plan.
Risks Mitigation Plan

Disruption to business activities due to COVID-19 pandemic
The depth and duration of the current economic declines Modifications to employee travel and work locations,
attributable to the COVID-19 pandemic, and any potential including work from home, enabled by robust IT and
economic recoveries, are currently unknown. During data security infrastructure and business continuity
lock-down situations or restrictions due to a pandemic or processes allow the Company to effectively respond to
calamity, the Company’s routine business operations may such restrictions and deliver customer commitments.
be adversely affected.
Currency Volatility
A substantial portion of the Company’s revenue is The Company manages its foreign currency risk by
generated in foreign currencies, while majority of the hedging a part of receivables in major currencies
Company’s expenses are incurred in Indian Rupees. The using forward contracts as a hedge instrument. This
functional currency of the Company is the Indian Rupee. helps the Company to minimize the foreign exchange
Exchange rate fluctuations can significantly impact the rate volatility.
Company’s revenues, operating results, cash flows and
total assets which are reported in Indian Rupees.
Competition
The Company faces competition from established global, The Company continues to invest in enriching its
as well as regional and local IT products and service IT solutions technically and functionally as relevant
providers. The Company also faces competition from to each market segment. A unique combination of
new-age players who offer niche solutions. state-of-the-art IT products along with end-to-end
consulting solutions for the financial services industry
makes the Company competitive in the market.
The Company also aims to ensure that product
differentiation expands the market.
Economic and political conditions

The Company has presence across most continents and The Company aims to proactively avoid situations
serves customers in over 150 countries. It faces risks with overt political or other risks. The Company,
due to changes in respective political environments, through its resources and presence of its parent,
state of economies, GDP growth, inflation and other carefully assesses the local situation to minimize
major changes in economic policies that are out of the impact of such risks on its growth strategies as well as
Company’s control. safety of its employees.
63
Risks Mitigation Plan
Litigation
Legal claims can arise from commercial disputes, The Company has extensive processes to monitor
intellectual property entitlements and employment related and mitigate risks associated with customer contracts
matters, among others. The risk increases due to vast in their local jurisdictions. The Company conducts
geographic presence of the Company’s operations and regular awareness sessions for its employees on
nature of its business. Litigation can be lengthy, expensive applicable laws, immigration policies, mobility
and disruptive. The results of litigation cannot be predicted, restrictions, data security, IP management, etc. The
and an adverse decision could result in monetary damages Company has a strong whistle blower mechanism for
or injunctive reliefs that could affect the business, operating reporting of issues and concerns by employees.
results or financial condition of the Company.
Cyber Security
Due to the nature of its offerings, there is a risk of The Company has implemented cyber security
disruption or damage to the Company from any incidence controls as per the NIST framework as also per ISO
involving compromise of data resulting in financial loss, 27001 standard to detect, prevent and remediate
reputational damage or legal claims. data breach threats. These controls are continuously
monitored for their effectiveness. The Company
maintains appropriate firewalls, access controls and
infrastructure services which are invoked at different
points to mitigate risks.
Intellectual Property Rights

Protecting intellectual property rights is crucial to the The Company relies on a combination of copyright
success of the Company, as any misappropriation or protection laws, license contracts, confidentiality
misuse of the intellectual property rights could harm its agreements, nondisclosure and other contractual
competitive position. There is also a risk of infringement confidentiality conditions to protect the Company's
claims by third parties. Such claims could lead to expensive proprietary intellectual property rights. The Company
litigation and even loss of IPR ownership. has developed a highly secured IT environment
that prevents unauthorized access to its intellectual
property assets. The Company’s release processes
are extensive tested to ensure that no unauthorized
third-party IP is included in its products or services.
Change in Business Model

Rapid technological advances, changing delivery models, The Company keeps close watch on the present and
evolving standards in software development, changing future competition and offerings, their market share,
and increasingly sophisticated customer needs and customer preferences, technological advancements
frequent new product introductions and enhancements and respective competitive advantages to make
characterize the industry in which the Company operates. required modifications to its market strategy and
Inability to adapt to these changes may adversely affect business plan.
the Company’s market share and impact future growth.
Data Privacy
Protection of customer and personal data is an area The Company has a strong data privacy program that
of increasing concern globally. Several countries and operates globally and has processes to keep track
economic blocks have promulgating legislations, e.g., of newer legislative promulgations. The program
GDPR by the European Union. Certain legislations carry involves strong internal controls, documentation
severe consequences for non-compliance or breach. Any policies, upgraded contract framework and employee
violation, security breach, observed non-compliance or awareness. The Company also ensures that its vendors
inadequacy of privacy policies and procedures can result follow the data privacy norms and conducts regular
in substantive liabilities, penalties and reputational impact. audits of the processes and systems used by them.
Global Regulations & Compliance Requirements

The Company’s operations are spread globally, and it needs The Company believes in adopting and adhering to
to manage a multi-cultural workforce, different political globally recognized corporate governance practices
and economic conditions, complex tax regulations and and continuously benchmarking itself against such
local compliance requirements. Exposure to diverse work norms. The Company, through its local offices, aims
environments, immigration requirements, labor laws, etc. to ensure compliance with applicable local laws and
may impact the performance of the Company in each engages services of professional advisors whenever
of such jurisdictions. Regulations which restrict mobility required. The Company has strong tax and mobility
could also lead to the Company’s inability to effectively compliance programs globally.
service certain customers leading to loss of revenue.

Consolidated financials
Financial statements for the year ended March 31, 2020 prepared in
accordance with Ind AS (Consolidated).
65
Independent Auditor’s Report
To the Members of Oracle Financial Services Software Limited
Report on the Audit of Consolidated Ind AS Financial Statements

1. Opinion
We have audited the accompanying Consolidated Ind AS financial statements of Oracle Financial Services Software
Limited (“the Holding Company”) and its subsidiaries (the Company and its subsidiaries together referred to as
(“the Group”), which comprise the Consolidated Balance Sheet as at March 31, 2020, the Consolidated Statement
of Profit and Loss (including Other Comprehensive Income), the Consolidated Statement of Changes in Equity
and the Consolidated Statement of Cash Flows for the year then ended, and notes to the Consolidated financial
statements, including a summary of significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid
Consolidated Ind AS financial statements give the information required by the Companies Act, 2013 (“the Act”)
in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards
prescribed under Section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules, 2015,
as amended, (“Ind AS”) and other accounting principles generally accepted in India, of the Consolidated state of
affairs of the Group as at March 31, 2020, the Consolidated profit and consolidated total other comprehensive
income, Consolidated changes in equity and its Consolidated cash flows for the year ended on that date.
2. Basis for Opinion
We conducted our audit of the Consolidated Ind AS financial statements in accordance with the Standards on
Auditing specified under Section 143(10) of the Act. Our responsibilities under those Standards are further
described in the Auditor’s Responsibilities for the Audit of the Consolidated Ind AS Financial Statements section
of our report. We are independent of the Group in accordance with the Code of Ethics issued by the Institute
of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the
Consolidated Ind AS financial statements under the provisions of the Companies Act, 2013 (“the Act”) and the
Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements
and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion on Consolidated Ind AS financial statements.
3. Key Audit Matter
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of
the Consolidated Ind AS financial statements of the current year. These matters were addressed in the context
of our audit of the Consolidated Ind AS financial statements as a whole, and in forming our opinion thereon, and
we do not provide a separate opinion on these matters.
We have determined the matters described below to be the key audit matters to be communicated in our report
which is based on audit procedures performed by us and by the other auditor of the components as described
in the “Other Matter” paragraph 7 below.
Sr. Key Audit Matter Auditor’s Response

No.
1. Evaluation of income tax provision Principal Audit Procedures:
The Group has uncertain income tax positions a) Evaluated the design and tested the operating
which includes matters under dispute involving effectiveness of the relevant controls, through
significant judgment to determine the possible combination of procedures involving inquiry and
outcome of these disputes. observation, reperformance and inspection of
evidence in respect of operation of these controls
Further the Group has operations in a number of to assess how the Group monitors income tax
different jurisdictions and are therefore subject and related developments and their assessment
to many tax regimes and differing rules and of the potential impact on the Group.
regulations. Management is required to ensure
compliance with tax laws applicable in each b) For uncertain tax positions, obtained details of
jurisdiction and appropriately determine the tax income tax assessments, appeal orders and
expense. Further, management is also required income tax demands from management.
to evaluate the transfer pricing mechanism as per
applicable tax laws in different jurisdictions and its
consequential impact on adequacy of provision
for income tax and deferred tax of the Group.

No.
From April 1, 2020, pursuant to the introduction c) Evaluated the management’s underlying
of Appendix C “Uncertainty over Income tax assumptions of the validity and adequacy of
Treatments” in Ind AS 12 “Income taxes”, the provisions for uncertain income tax positions
Company has during the year ended March 31, and evaluated the basis of determination of
2020, reviewed the uncertain tax positions in the possible outcome of the disputes. Also
respect of all matters and wherever considered considered legal precedence and other rulings
appropriate recognised income tax provisions and read, where applicable, external advice
relating to uncertain income tax treatments and sought by the Company for these uncertain
the related interest expense thereon. income tax positions and reviewed related
correspondence in evaluating management’s
Refer note 2.3(f), 16, 27 (vi), 28(b) and 39 of the position on these uncertain income tax matters.
consolidated Ind AS financial statements.
d) For key tax jurisdictions, assessed transfer
pricing mechanism including the basis of
recording provisions for uncertain income tax
treatment and interest thereon, as per applicable
tax laws. We discussed with management and
understood the rationale for recording the
provision for uncertain tax positions.
e)
Tested current income tax and deferred tax
computation provided by the management
and checked the arithmetical accuracy of the
amounts reported for current and deferred
tax, including assessment of effective tax rate
reconciliation to evaluate the Group’s total
income tax expense for the year.
2. Revenue Recognition Principal Audit Procedures:
The Group’s revenue streams consist of license a) Evaluated whether the revenue recognition of
fees, maintenance fees and consulting fees – the Group is in accordance with the accounting
fixed price and time & material contracts. policies and principles as per Ind AS 115.
Revenue from contracts with customers is b) Obtained an understanding of management’s
recognized in accordance with the requirements internal controls over the revenue process and
of Ind AS 115, Revenue from Contracts with evaluated whether these were designed in line
Customers (“Ind AS 115”). with the Ind AS 115. Tested relevant internal
controls, including information technology (IT)
The application of Ind AS 115 involves certain controls, over revenue process. Carried out a
key judgements relating to identification of combination of procedures involving inquiry and
distinct performance obligations, determination observation, reperformance and inspection of
of the transaction price, allocation of transaction evidence in respect of operation of these controls.
price to the identified performance obligations c) Performed following procedures on a sample
especially to license fees, the appropriateness of of revenue contracts entered into by Group,
the basis used to measure revenue recognised selected on a test check basis as deemed
over time or at a point in time, including relevant appropriate:
cut-off at period end dates. i) Read and identified the distinct
Refer note 2.3 (e), 17, 25 and 27 (ix)] of the performance obligations in these contracts
and compared these performance
consolidated Ind AS financial statements.
obligations with those identified and
recorded in the books of accounts.
ii) Read the terms of the contracts and
checked determination of the transaction
price including any variable consideration.
Also, checked management’s
evaluation of the stand-alone selling
price for each performance obligation.
iii) Tested the basis used by the management
to measure revenue recognised over time
or at a point in time as per the requirements
of Ind AS 115.
d) Performed cut-off testing procedures (by
selecting a sample of contracts either side
of year-end) to test that revenue has been
recognised in the appropriate accounting period.
67
No.
3. Impairment of Goodwill Principal Audit Procedures:
The goodwill amounting to Rs. 6,086.63 million a) Focused our testing on the impairment of
represents 7.59% of its total assets. For the cash goodwill and the key assumptions and estimates
generating units (CGUs) which also includes made by management.
goodwill, the determination of the recoverable
amount of these CGUs requires significant b) Audit procedures included an assessment of
estimates in determining the key assumptions the controls over the impairment assessment
supporting the expected future cash flows of the process.
business, the utilisation of the relevant assets c) Evaluated the design and tested the operating
and the most appropriate discount rate. effectiveness of the relevant controls.
Refer to note 2.3 (b), 6, 27 (iv) and 32 of the d) Carried out the following procedures on the
consolidated Ind AS financial statements. valuation report and supporting assumptions
provided to us:
i. Evaluated whether the approach and

methodology used by management to
calculate the value in use of each CGU
complies with Ind AS 36 Impairment of
Assets.
ii. Obtained and analysed the projections

provided by management for each CGU,
to determine whether the forecast cash
flows are supportable based on historical
performance, including assessment of
long-term growth rate.
iii. Analysed and reviewed the discount rates

calculated by management i.e. Weighted
Average Cost of Capital (WACC).
iv. Assessed the key cash flow assumptions

based on historical performance and
industry information.
e) Performed sensitivity analysis around the key

assumptions used by management to ascertain
the extent of change in those assumptions
that either individually or collectively would be
required for an impairment charge.
f) Assessed the appropriateness of the recognition,

measurement and related disclosures of
goodwill.
4. Information other than the Consolidated Ind AS financial statements and Auditor’s report thereon
The Holding Company’s Board of Directors is responsible for the preparation of the other information. The
other information comprises the information included in the Directors Report, Corporate Governance Report
and Management Discussion and Analysis, but does not include the Consolidated Ind AS financial statements
and our auditor’s report thereon. These reports are expected to be made available to us after the date of our
auditor’s report.
Our opinion on the Consolidated Ind AS financial statements does not cover the other information and we will
not express any form of assurance thereon.
In connection with our audit of the Consolidated Ind AS financial statements, our responsibility is to read the other
information identified above when it becomes available and, in doing so, consider whether the other information
is materially inconsistent with the Consolidated Ind AS financial statements or our knowledge obtained in the
audit, or otherwise appears to be materially misstated.
When we read the other information included in the above reports, if we conclude that there is material
misstatement therein, we are required to communicate the matter to those charged with governance and
determine the actions under the applicable laws and regulations.

5. Management’s responsibility for the Consolidated Ind AS Financial Statements
The Holding Company’s Board of Directors is responsible for the matters stated in section 134(5) of the Act with
respect to the preparation of these Consolidated Ind AS financial statements that give a true and fair view of the
consolidated financial position, consolidated financial performance, consolidated total comprehensive income,
consolidated changes in equity and consolidated cash flows of the Group in accordance with the Ind AS and
other accounting principles generally accepted in India. The respective Board of Directors of the Companies
included in the Group are responsible for maintenance of the adequate accounting records in accordance with
the provisions of the Act for safeguarding of the assets of the Group and for preventing and detecting frauds
and other irregularities; selection and application of appropriate accounting policies; making judgments and
estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation of the Consolidated Ind AS financial statements
that give a true and fair view and are free from material misstatement, whether due to fraud or error which
have been used for the purpose of preparation of the consolidated financial statements by the Directors of the
Holding Company, as aforesaid.
In preparing the Consolidated Ind AS financial statements, the respective Board of Directors of the Companies
included in the Group are responsible for assessing the ability of the Group to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless
Board of Directors either intends to liquidate the Group or to cease operations, or has no realistic alternative but
to do so.
The respective Board of Directors of the Companies included in the Group are also responsible for overseeing
the Company’s financial reporting process.
6. Auditor’s Responsibilities for the Audit of the Consolidated Ind AS Financial Statements
Our objectives are to obtain reasonable assurance about whether the Consolidated Ind AS financial statements
as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report
that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit
conducted in accordance with Standards on auditing will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of these
Consolidated Ind AS financial statements.
As part of an audit in accordance with Standards on auditing, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
i) Identify and assess the risks of material misstatement of the Consolidated Ind AS financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain
audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting
a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
ii) Obtain an understanding of internal financial controls relevant to the audit in order to design audit
procedures that are appropriate in the circumstances. Under the section 143(3)(i) of the Act, we are also
responsible for expressing our opinion on whether the Holding Company and its subsidiary Companies
which are Companies incorporated in India, has adequate internal financial controls system in place and
the operating effectiveness of such controls.
iii) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by management.
iv) Conclude on the appropriateness of management’s use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions
that may cast significant doubt on the ability of the Group to continue as a going concern. If we conclude
that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related
disclosures in the Consolidated Ind AS financial statements or, if such disclosures are inadequate, to modify
our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s
report. However, future events or conditions may cause the Group to cease to continue as a going concern.
v) Evaluate the overall presentation, structure and content of the Consolidated Ind AS financial statements,
including the disclosures, and whether the Consolidated Ind AS financial statements represent the
underlying transactions and events in a manner that achieves fair presentation.
69
vi) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Group to express an opinion on the consolidated Ind AS financial statements. We are
responsible for the direction, supervision and performance of the audit of the Ind AS financial statements
of such entities included in the consolidated Ind AS financial statements of which we are the independent
auditors. For the other entities included in the consolidated Ind AS financial statements, which have been
audited by the other auditors, such other auditors remain responsible for the direction, supervision and
performance of the audits carried out by them. We remain solely responsible for our audit opinion.
We communicate with those charged with governance of the Holding Company and such other entities included
in the Consolidated financial statements of which we are the independent auditors regarding, among other
matters, the planned scope and timing of the audit and significant audit findings, including any significant
deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters that
may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of
most significance in the audit of Consolidated Ind AS financial statements of the current period and are therefore
the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.
7. Other Matters
We did not audit the Ind AS financial statements/financial information, in respect of five subsidiaries, whose
Ind AS financial statements/financial information reflect total assets of Rs. 24,431.77 million and net assets of
Rs.12,880.64 million as at March 31, 2020, total revenues of Rs. 41,498.60 million, total profit after tax (net) of
Rs. 807.85 million and net cash inflows of Rs. 1,835.59 million for the year ended on that date, as considered in
the consolidated Ind AS financial statements. These Ind AS financial statement/financial information have been
audited by other auditor, whose Ind AS financial statements/ financial information and auditor’s reports have
been furnished to us by the management. Our opinion on the consolidated Ind AS financial statements, in so
far as it relates to the amounts and disclosures included in respect of these subsidiaries, and our report in terms
of sub-section (3) of Section 143 of the Act, in so far as it relates to the aforesaid subsidiaries, is based solely on
the reports of such other auditor.
Our opinion above on the consolidated Ind AS financial statements, and our report on Other Legal and Regulatory
Requirements below, is not modified in respect of the above matters with respect to our reliance on the work
done and the reports of the other auditor.
8. Report on Other Legal and Regulatory Requirements
As required by section 143 (3) of the Act, based on our audit and on the consideration of report of the other
auditors on separate Ind AS financial statements and the other financial information of subsidiaries, as noted in
the ‘other matter’ paragraph, we report, to the extent applicable, that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and
belief were necessary for the purpose of our audit of consolidated Ind AS Financial Statements.
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it
appears from our examination of those books.
c) The Consolidated Balance Sheet, the Consolidated Statement of Profit and Loss including Other
Comprehensive Income, the Consolidated Statement of Cash Flow and Consolidated Statement of Changes
in Equity dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid Consolidated Ind AS financial statements comply with the Ind AS specified
under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of the written representations received from the directors of the Holding Company as on
March 31, 2020 taken on record by the Board of Directors of the Holding Company and the reports of the
statutory auditors of its subsidiary companies incorporated in India, none of the directors of the Group’s
companies incorporated in India is disqualified as on March 31, 2020 from being appointed as a director
in terms of Section 164 (2) of the Act;
f) With respect to the adequacy of the internal financial controls over financial reporting of the Holding
Company and its subsidiary companies incorporated in India to the extent applicable and the operating
effectiveness of such controls, refer to our separate report in Annexure 1 to this report.

g) With respect to the other matters to be included in the Auditor’s Report in accordance with the requirements
of section 197(16) of the Act, as amended, in our opinion and to the best of our information and according
to the explanations given to us, the remuneration paid by the Company to its directors during the year is in
accordance with the provisions of section 197 of the Act.
h) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of
the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us and based on the consideration of the reports of the other
auditor on separate Ind AS financial statements as also the other financial information of the subsidiaries,
as noted in the ‘Other matter’ paragraph:
i. The Group has disclosed the impact of pending litigations on the financial position in its Consolidated
Ind AS financial statements – Refer Note 28 (b) and Note 39 to the Consolidated Ind AS financial
statements;
ii. The Group did not have any long-term contracts including derivative contracts for which there were
any material foreseeable losses; and
iii. There were no amounts which were required to be transferred to the Investor Education and Protection
Fund by the Holding Company and its subsidiary companies incorporated in India.
For Mukund M. Chitale & Co.

Firm Regn. No. 106655W
(S.M.Chitale)
Partner
M. No. 111383
UDIN: 20111383AAAACY6960
Date: May 14, 2020

Place: Mumbai
71
Annexure 1 to the Independent Auditor’s Report of even date on the consolidated Ind AS financial
statements of Oracle Financial Services Software Limited
Referred to in paragraph [8(f)] under Report on Other Legal and Regulatory Requirements of our
report of even date
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the
Companies Act, 2013 (“the Act”)
1. In conjunction with our audit of the consolidated Ind AS financial statements of Oracle Financial Services
Software Limited as of and for the year ended March 31, 2020, we have audited the internal financial controls
over financial reporting of Oracle Financial Services Software Limited (hereinafter referred to as the “Holding
Company”) and its subsidiary companies to the extent applicable, which are companies incorporated in India, as
of that date.
Management’s Responsibility for Internal Financial Controls
2. The respective Board of Directors of the Holding Company and its subsidiary companies, which are companies
incorporated in India, are responsible for establishing and maintaining internal financial controls based on the
internal control over financial reporting criteria established by the Holding Company considering the essential
components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial
Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design,
implementation and maintenance of adequate internal financial controls that were operating effectively for
ensuring the orderly and efficient conduct of its business, including adherence to the respective company’s
policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and
completeness of the accounting records, and the timely preparation of reliable financial information, as required
under the Act.
Auditors’ Responsibility
3. Our responsibility is to express an opinion on the Company's internal financial controls over financial reporting
based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial
Controls Over Financial Reporting (the “Guidance Note”) issued by the Institute of Chartered Accountants of
India and the Standards on Auditing as prescribed under section 143(10) of the Act, to the extent applicable
to an audit of internal financial controls and both. Those Standards and the Guidance Note require that we
comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether
adequate internal financial controls over financial reporting was established and maintained and if such controls
operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial
controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls
over financial reporting included obtaining an understanding of internal financial controls over financial
reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating
effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor’s
judgment, including the assessment of the risks of material misstatement of the financial statements, whether
due to fraud or error.
We believe that the audit evidence we have obtained and the audit evidence obtained by the other auditors in
terms of their reports referred to in the Other Matter paragraph below, is sufficient and appropriate to provide a
basis for our audit opinion on the internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
4. A company's internal financial control over financial reporting is a process designed to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting principles. A company's internal financial control
over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records
that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the
company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation
of financial statements in accordance with generally accepted accounting principles, and that receipts and
expenditures of the company are being made only in accordance with authorisations of management and
directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of
unauthorised acquisition, use, or disposition of the company's assets that could have a material effect on the
financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting
5. Because of the inherent limitations of internal financial controls over financial reporting, including the possibility
of collusion or improper management override of controls, material misstatements due to error or fraud may
occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial
reporting to future periods are subject to the risk that the internal financial control over financial reporting may
become inadequate because of changes in conditions, or that the degree of compliance with the policies or
procedures may deteriorate.
Opinion
6. In our opinion, the Holding Company and its subsidiary companies to the extent applicable, which are companies
incorporated in India, have, maintained in all material respects, an adequate internal financial controls system
over financial reporting and such internal financial controls over financial reporting were operating effectively
as at March 31, 2020, based on the internal control over financial reporting criteria established by the Holding
Company considering the essential components of internal control stated in the Guidance Note on Audit of
Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
Other Matter
7. Our report under Section 143(3)(i) of the Act on the adequacy and operating effectiveness of the internal financial
controls over financial reporting of the Holding Company, insofar as it relates to two subsidiary companies to
the extent applicable, which are companies incorporated in India, is based on the corresponding reports of the
auditors of such subsidiary companies incorporated in India.

(S.M.Chitale)
Partner
M. No. 111383
UDIN: 20111383AAAACY6960
Date: May 14, 2020

Place: Mumbai
73
Consolidated balance sheet
as at March 31, 2020
Notes March 31, 2020 March 31, 2019
ASSETS
Non-current assets
Property, plant and equipment 3 2,305.20 2,450.09
Capital work-in-progress 3 0.49 4.53
Right-of-use Assets 4 1,134.40 −
Investment property 5 102.00 102.00
Goodwill 6 6,086.63 6,086.63
Financial assets 7 1,447.09 649.80
Deferred tax assets (net) 16 1,013.68 617.03
Income tax assets (net) 7,979.21 7,486.56
Other non-current assets 10 389.63 711.88
20,458.33 18,108.52
Current assets
Financial Assets
Trade receivables 8 9,253.66 9,474.76
Cash and cash equivalents 9 (a) 13,315.94 11,562.69
Other bank balances 9 (b) 31,652.17 16,716.93
Other current financials assets 7 2,501.59 3,357.06
Income tax assets (net) 806.28 28.45
Other current assets 10 2,225.47 2,066.01
59,755.11 43,205.90
TOTAL 80,213.44 61,314.42
EQUITY AND LIABILITIES
Equity
Equity share capital 11 429.40 428.76
Other equity 12 65,266.40 48,936.63
Total equity 65,695.80 49,365.39
Non- current liabilities
Financial liabilities
Lease liability 29 681.50 −
Other financial liabilities 13 45.55 32.38
Other non-current liabilities 14 − 160.62
Provisions 15 1,198.74 1,005.21
Deferred tax liability (net) 16 1,975.56 29.80
Income tax liabilities (net) 1,156.30 106.84
5,057.65 1,334.85
Current liabilities
Trade payables
Payable to micro and small enterprises 13 2.65 3.17
Payable to others 13 352.27 564.48
Other current financial liabilities 13 2,195.30 2,723.47
Other current liabilities 14 4,967.81 5,064.67
Provisions 15 1,291.06 1,290.03
Income tax liabilities (net) 185.58 968.36
9,459.99 10,614.18
TOTAL 80,213.44 61,314.42
Summary of significant accounting policies 2
The accompanying notes form an integral part of the consolidated financial statements.
As per our report of even date For and on behalf of the Board of Directors of
For Mukund M. Chitale & Co. S Venkatachalam Chaitanya Kamat
Chartered Accountants Chairperson Managing Director
ICAI Firm Registration No. 106655W DIN: 00257819 & Chief Executive Officer
DIN: 00969094
S. M. Chitale Makarand Padalkar Onkarnath Banerjee

Partner Whole-time Director Company Secretary
Membership No. 111383 & Chief Financial Officer & Compliance Officer
DIN: 02115514 ACS: 8547
Mumbai, India Mumbai, India

May 14, 2020 May 14, 2020

Consolidated statement of profit and loss
for the year ended March 31, 2020
(Amounts in ₹ million, except share data)

Notes Year ended Year ended
March 31, 2020 March 31, 2019
Revenue from operations 17 48,612.76 49,589.03
Finance income 18 1,658.14 1,319.73
Other income, net 19 115.25 441.19
Total income 50,386.15 51,349.95
EXPENSES
Employee benefit expenses 20 21,178.01 21,958.10
Travel related expenses 2,255.81 2,466.95
Professional fees 1,452.45 1,492.07
Finance cost 21 473.65 −
Other operating expenses 22 1,439.61 2,225.79
Depreciation and amortization 3&4 1,063.81 537.17
Total expenses 27,863.34 28,680.08
Tax expenses 16
Current tax 6,315.25 8,206.10
Deferred tax 1,585.39 604.79
Total tax expenses 7,900.64 8,810.89
Other comprehensive income
Items that will not be reclassified subsequently to profit or loss
Actuarial (loss) gain on gratuity fund (96.44) 46.51
Deferred tax 16 23.38 (14.07)
Items that will be reclassified subsequently to profit and loss
Exchange differences on translation of foreign operations 1,108.95 194.05
Total other comprehensive income for the year, net of tax 1,035.89 226.49
Profit attributable to:
Equity holders of the Company 14,622.17 13,858.98
Non-controlling interests − −
14,622.17 13,858.98
Total comprehensive income attributable to:
Equity holders of the Company 15,658.06 14,085.47
Non-controlling interests − −
15,658.06 14,085.47
Earnings per equity share of par value of ₹ 5 each 24
(March 31, 2019 ₹ 5) (in ₹)
Basic 170.38 161.94
Diluted 169.66 161.11
DIN: 00969094

DIN: 02115514 ACS: 8547

May 14, 2020 May 14, 2020
75
Consolidated statement of changes in equity
Year ended March 31, 2020 (Amounts in ₹ million, except share data)
Particulars Equity share capital Other equity Total equity
No. of shares Share Share Securities General Employee Contribution Gain on Retained Other comprehensive income attributable
capital application premium reserve stock from Treasury earnings to equity
Foreign Remeasurement holders
money options Ultimate shares currency of defined
pending outstanding Holding of the
translation benefit obligation Company
allotment Company reserve
Balance as of April 1, 2019 85,751,987 428.76 0.48 15,141.21 10,145.19 1,647.37 144.52 522.70 20,328.27 1,006.89 ‒ 49,365.39

Changes in equity for year ended March
31, 2020
Application money received for ‒ ‒ 43.19 ‒ ‒ ‒ ‒ ‒ ‒ ‒ ‒ 43.19
exercised options
Shares issued for exercised options 100,151 0.50 (43.67) 43.17 ‒ ‒ ‒ ‒ ‒ ‒ ‒ ‒
Stock compensation charge ‒ ‒ ‒ ‒ ‒ 424.65 119.36 ‒ ‒ ‒ ‒ 544.01
Forfeiture of options ‒ ‒ ‒ ‒ ‒ (28.82) ‒ ‒ 28.82 ‒ ‒ ‒
Stock compensation related to options ‒ ‒ ‒ 316.41 ‒ (316.41) ‒ ‒ ‒ ‒ ‒ ‒
exercised
Sale of treasury shares 27,160 0.14 ‒ ‒ ‒ ‒ ‒ 85.01 ‒ ‒ ‒ 85.15
Profit for the year ‒ ‒ ‒ ‒ ‒ ‒ ‒ ‒ 14,622.17 ‒ ‒ 14,622.17
Actuarial gain (loss) on gratuity fund ‒ ‒ ‒ ‒ ‒ ‒ ‒ ‒ ‒ ‒ (73.06) (73.06)
including deferred tax thereon
Exchange differences on translation of ‒ ‒ ‒ ‒ ‒ ‒ ‒ ‒ ‒ 1,108.95 ‒ 1,108.95
foreign operations
Actuarial gain (loss) on gratuity ‒ ‒ ‒ ‒ ‒ ‒ ‒ ‒ (73.06) ‒ 73.06 ‒
fund including deferred tax thereon
transferred to retained earnings
Balance as of March 31, 2020 85,879,298 429.40 ‒ 15,500.79 10,145.19 1,726.79 263.88 607.71 34,906.20 2,115.84 ‒ 65,695.80
No. of shares Share Share Securities General Employee Contribution Gain on Retained Other comprehensive income attributable
capital application premium reserve stock from Treasury earnings Foreign Remeasurement to equity
money options Ultimate shares currency of defined holders
pending outstanding Holding translation benefit obligation of the
allotment Company reserve Company
Balance as of April 1, 2018 85,346,293 426.73 1.91 13,663.84 10,145.19 1,899.06 48.17 357.16 19,719.03 812.84 ‒ 47,073.93
Changes in equity for year ended March
31, 2019
Adjustment on adoption of Ind AS ‒ ‒ ‒ ‒ ‒ ‒ ‒ ‒ 93.64 ‒ ‒ 93.64
115 'Revenue from Contracts with
Customers'
Application money received for ‒ ‒ 749.91 ‒ ‒ ‒ ‒ ‒ ‒ ‒ ‒ 749.91
exercised options
Shares issued for exercised options 362,254 1.82 (751.34) 749.52 ‒ ‒ ‒ ‒ ‒ ‒ ‒ ‒
Stock compensation charge ‒ ‒ ‒ ‒ ‒ 514.32 96.35 ‒ ‒ ‒ ‒ 610.67
Forfeiture of options ‒ ‒ ‒ ‒ ‒ (38.16) ‒ ‒ 38.16 ‒ ‒ ‒
Stock compensation related to options ‒ ‒ ‒ 727.85 ‒ (727.85) ‒ ‒ ‒ ‒ ‒ ‒
exercised
Sale of treasury shares 43,440 0.21 ‒ ‒ ‒ ‒ ‒ 165.54 ‒ ‒ ‒ 165.75
Profit for the year ‒ ‒ ‒ ‒ ‒ ‒ ‒ ‒ 13,858.98 ‒ ‒ 13,858.98
Final equity dividend ‒ ‒ ‒ ‒ ‒ ‒ ‒ ‒ (11,125.59) ‒ ‒ (11,125.59)
Dividend distribution tax ‒ ‒ ‒ ‒ ‒ ‒ ‒ ‒ (2,288.39) ‒ ‒ (2,288.39)
Actuarial gain (loss) on gratuity fund ‒ ‒ ‒ ‒ ‒ ‒ ‒ ‒ ‒ ‒ 32.44 32.44
Exchange differences on translation of ‒ ‒ ‒ ‒ ‒ ‒ ‒ ‒ ‒ 194.05 ‒ 194.05
foreign operations
Actuarial gain (loss) on gratuity ‒ ‒ ‒ ‒ ‒ ‒ ‒ ‒ 32.44 ‒ (32.44) ‒
Balance as of March 31, 2019 85,751,987 428.76 0.48 15,141.21 10,145.19 1,647.37 144.52 522.70 20,328.27 1,006.89 ‒ 49,365.39
Summary of significant accounting policies [Refer note 2]
As per our report of even date For and on behalf of the Board of Directors of Oracle Financial Services Software Limited
ICAI Firm Registration No. 106655W
S. M. Chitale S Venkatachalam Chaitanya Kamat Makarand Padalkar Onkarnath Banerjee
Partner Chairperson Managing Director Whole-time Director Company Secretary
Membership No. 111383 DIN: 00257819 & Chief Executive Officer & Chief Financial Officer & Compliance Officer
DIN: 00969094 DIN: 02115514 ACS: 8547
77
May 14, 2020 May 14, 2020
Notes annexed to and forming part of consolidated financial statements
Note 1: Corporate information

Oracle Financial Services Software Limited (the “Company”) was incorporated in India with limited liability on
September 27, 1989. The Company is domiciled in India and has its registered office at Mumbai, Maharashtra,
India. The Company is a subsidiary of Oracle Global (Mauritius) Limited holding 73.42% (March 31, 2019 - 73.53%)
ownership interest in the Company as at March 31, 2020.
The Company along with its subsidiaries is principally engaged in the business of providing information technology
solutions and business processing services to the financial services industry worldwide. The Company has a suite of
banking products, which caters to the transaction processing and compliance needs of corporate, retail, investment
banking, treasury operations and data warehousing.
The consolidated financial statements for the year ended March 31, 2020 were approved by the Company’s Board of
Directors and authorized for issue on May 14, 2020.
The Company has following subsidiaries and controlled entities (hereinafter collectively referred as the “OFSS group”):
Companies Country of Incorporation Holding % Relationship

Direct holding
Oracle Financial Services Software B.V. The Netherlands 100% Subsidiary
Oracle Financial Services Software Pte. Ltd. Singapore 100% Subsidiary
Oracle Financial Services Software America, Inc. United States of America 100% Subsidiary
ISP Internet Mauritius Company Republic of Mauritius 100% Subsidiary
Oracle (OFSS) Processing Services Limited India 100% Subsidiary
Oracle (OFSS) ASP Private Limited India 100% Subsidiary
Oracle Financial Services Software Chile Limitada Chile 100% Subsidiary
Oracle Financial Services Software (Shanghai) Republic of China 100% Subsidiary
Limited
Mantas India Private Limited* India 100% Subsidiary
i-flex Employee Stock Option Trust India ‒ Controlled trust
Subsidiaries of Oracle Financial Services Software
America, Inc.
Oracle Financial Services Software, Inc. United States of America 100% Subsidiary
Mantas Inc. United States of America 100% Subsidiary
Subsidiary of Mantas Inc.
Sotas Inc. United States of America 100% Subsidiary
Subsidiary of Oracle Financial Services Software B.V.
Oracle Financial Services Software SA Greece 100% Subsidiary
Subsidiary of Oracle Financial Services Software Pte. Ltd.
Oracle Financial Services Consulting Pte. Ltd. Singapore 100% Subsidiary
Subsidiaries of ISP Internet Mauritius Company
Oracle (OFSS) BPO Services Inc. United States of America 100% Subsidiary
Oracle (OFSS) BPO Services Limited India 100% Subsidiary
*Mantas India Private Limited was subsidiary of Sotas Inc. up to May 29, 2019, subsequent to which it has become direct subsidiary
of the Company.

Note 2: Significant accounting policies
2.1 Basis of preparation

These consolidated financial statements comprising of balance sheet as at March 31, 2020, statement of profit and
loss, statement of changes in equity and statement of cash flows for the year then ended have been prepared in
The consolidated financial statements have been prepared on a historical cost basis, except for the following assets
and liabilities which have been measured at fair value:
- certain financial assets and liabilities, including derivative instruments, that are measured at fair value
- assets held for sale
- defined benefit plan
- share-based payments
Previous year's comparative numbers have been reclassified wherever necessary, to conform to current year’s
presentation.
2.2 Basis of consolidation

OFSS consolidates entities which it owns or controls. The consolidated financial statements comprise the financial
statements of the company, its subsidiaries and controlled trust as listed out in note 1. Control is achieved when the
OFSS group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to
affect those returns through its power over the investee. Specifically, the OFSS group controls an investee if and only
if the OFSS group has:
i) Power over investee (i.e. existing rights that give it the current ability to direct the relevant activities of the investee)
ii) Exposure, or rights, to variable returns from its involvement with the investee, and
iii) The ability to use its power over the investee to affect its returns.
Generally, there is a presumption that a majority of voting rights result in control. To support this presumption and
when the OFSS group has less than a majority of the voting or similar rights of an investee, the OFSS group considers
all relevant facts and circumstances in assessing whether it has power over an investee, including:
a) The contractual arrangement with the other vote holders of the investee
b) Rights arising from other contractual arrangements
c) The OFSS group’s voting rights and potential voting rights
d) The size of the OFSS group’s holding of voting rights relative to the size and dispersion of the holdings of the
other voting right holders
The OFSS group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are
changes to one or more of the three elements of control. Consolidation of a subsidiary begins when the OFSS group
obtains control over the subsidiary and ceases when the OFSS group loses control over the subsidiary.
Consolidated financial statements are prepared using uniform accounting policies for like transactions and other
events in similar circumstances. The financial statements of all entities used for the consolidation are drawn up to
same reporting date as that of parent company i.e. as at March 31, 2020.
The financial statements of the companies under OFSS group are consolidated on a line-by-line basis and intra-group
balances and transactions including unrealized gain/loss from such transactions are eliminated upon consolidation.
79
2.3 Summary of significant accounting policies
The significant accounting policies adopted by the OFSS group, in respect of the consolidated financial statements are
set out as below:
(a) Property, plant and equipment including intangibles and capital work-in-progress, depreciation
and amortization
Property, plant and equipment including intangibles and capital work-in-progress
Freehold land is stated at cost. All other items of property, plant and equipment and capital work in progress, are
stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. Such cost includes the
cost of replacing part of the plant and equipment, if the recognition criteria are met. When significant parts of plant
and equipment are required to be replaced at intervals, the OFSS group depreciates them separately based on their
specific useful lives. All other repair and maintenance costs are recognized in the statement of profit or loss as incurred.
The present value of the expected cost for the decommissioning of an asset after its use is included in the cost of the
respective asset if the recognition criteria for a provision are met. All additions during the reported year are considered
at cost.
The OFSS group purchases certain specific-use application software, which is in ready to use condition, for internal
use. It is estimated that such software has a relatively short useful life, usually less than one year. The OFSS group,
therefore, charges to the consolidated statement of profit and loss the cost of acquiring such software.
Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired
in a business combination is becomes their fair value at the date of acquisition. Following initial recognition, intangible
assets are carried at cost less any accumulated amortization and accumulated impairment losses.
Intangible assets with indefinite useful lives are not amortized, but are tested for impairment annually, either individually
or at the cash-generating unit level.
Depreciation and amortization are computed as per the straight-line method using the rates arrived at based on the
useful lives estimated by the management. The estimated useful life considered for depreciation of fixed assets is as
follows:
Asset description Asset life (in years)

Improvement to leasehold premises Lesser of 7 years or lease term
Buildings 20
Computer equipments 3
Office equipments 2-5
Electricals and other installations 2-7
Furniture and fixtures 2-7
The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each
financial year end and adjusted prospectively, if appropriate.
The management has estimated, supported by an independent assessment by professionals, the useful lives of
buildings as 20 years. These lives are lower than those indicated in schedule II to the Act.
The management has estimated, based on an internal assessment, the useful lives of the following classes of assets.
- The useful lives of servers and networking equipment’s forming part of computer equipment’s are estimated as
3 years. These lives are lower than those indicated in schedule II to the Act.
- The useful lives of furniture and fixtures and electrical and other installations are estimated at 2-7 years. These
lives are lower than those indicated in schedule II to the Act.
(b) Impairment of non-financial assets

The carrying amounts of non-financial assets are reviewed at each balance sheet date if there is any indication of
impairment based on internal / external factors. An impairment loss is recognized wherever the carrying amount of
an asset exceeds its recoverable amount. The recoverable amount is the greater of the asset’s or cash generating unit’s
(CGU) fair value less cost of disposal, and its value in use. In assessing value in use, the estimated future cash flows are
discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time
value of money and risks specific to assets.

In determining fair value less costs of disposal, recent market transactions are taken into account. If no such transactions
can be identified, an appropriate valuation model is used. These calculations are validated by valuation multiples,
quoted share prices for publicly traded companies or other available fair value indicators. The OFSS group bases its
impairment calculation on detailed budgets and forecast calculations, which are prepared separately for each of the
OFSS group’s CGUs to which the individual assets are allocated.
Goodwill is tested for impairment annually as at March 31 and when circumstances indicate that the carrying value
may be impaired. Impairment is determined for goodwill by assessing the recoverable amount of each CGU to which
the goodwill relates. When the recoverable amount of the CGU is less than its carrying amount, an impairment loss is
recognized. Impairment losses relating to goodwill cannot be reversed in future periods.
(c) Foreign currencies

The OFSS group’s consolidated financial statements are presented in Indian Rupees (‘INR’), which is also the parent
company’s functional currency. For each entity the OFSS group determines the functional currency and items included
in the financial statements of each entity are measured using that functional currency.
Foreign currency balances
Transactions in foreign currencies are initially recorded by the OFSS group’s entities at their respective functional
currency using spot rates on the dates of the transaction.
Monetary assets and liabilities denominated in foreign currencies are translated into the relevant functional currency
at exchange rates at the reporting date.
Exchange differences arising on settlement or translation of monetary items are recognized in the statement of profit
and loss.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the
exchange rates at the dates of the initial transactions.
OFSS group companies
On consolidation, the assets and liabilities of foreign operations are translated into INR at the rate of exchange prevailing
at the reporting date and their statements of profit or loss are translated at exchange rates prevailing at the date of
the transactions. For practical reasons, the OFSS group uses an average rate to translate income and expense items,
if the average rate approximates the exchange rates at the date of the transactions. The exchange differences arising
on translation for consolidation are recognized in Other Comprehensive income (“OCI”).
In accordance with Appendix B to Ind AS 21 “Foreign Currency Transactions and Advance Considerations”, the date
of the transaction for the purpose of determining the exchange rate to be used on initial recognition of the related
asset or liability, expense or income, is when the OFSS group has received or paid advance consideration in foreign
currency.
(d) Research and development expenses for software products

technical feasibility of project is established, future economic benefits are probable, the OFSS group has an intention
and ability to complete and use or sell the software and the cost can be measured reliably.
Software product development costs incurred subsequent to the achievement of technical feasibility are not material
and are expensed as incurred.
(e) Revenue recognition

Revenue is recognized upon transfer of control of promised products or services to customers in an amount that
reflects the consideration that the OFSS group expects to receive in exchange for those products or services.
In arrangements for software development and related services along with maintenance services, the OFSS group has
applied the guidance as per Ind AS 115, Revenue from contracts with customers, by applying revenue recognition
criteria for each distinct performance obligations. For allocating the transaction price, the OFSS group has measured
the revenue in respect of each performance obligation of a contract at its relative standalone selling price. The price
that is regularly charged for an item when sold separately is the best evidence of its standalone selling price. For
Software licenses, the OFSS group is using a residual approach for estimating the standalone selling price of software
license as the pricing is highly variable. For software development and related services, the performance obligations
are satisfied as and when the services are rendered since the customer generally obtains control of the work as it
progresses.
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The OFSS group accounts for modifications to existing contracts by assessing whether the services added are distinct
and whether the pricing is at the standalone selling price. Services added that are not distinct are accounted for on a
cumulative catch up basis, while those that are distinct are accounted for prospectively, either as a separate contract
if the additional services are priced at the standalone selling price, or as a termination of the existing contract and
creation of a new contract if not priced at the standalone selling price.
The OFSS group presents revenues net of indirect taxes in its consolidated statement of profit and loss.
Performance obligation
Revenue from licenses where the customer obtains a “right to use” the licenses is recognized at the time the license is
made available to the customer. Where the license is required to be substantially customized as part of the implementation
service the entire arrangement fee for license and implementation is considered to be a single performance obligation
and the revenue is recognized using the percentage-of-completion method as the implementation is performed.
Product maintenance revenue is recognized rateably over the period of the contract.
Revenue from fixed price contracts, where the performance obligations are satisfied over time and where there is no
uncertainty as to measurement or collectability of consideration, is recognized by reference to the stage of completion.
Stage of completion is measured by reference to labor hours incurred to date as a percentage of total estimated labor
hours for each contract. When the contract outcome cannot be measured reliably, revenue is recognized only to the
extent that the expenses incurred are eligible to be recovered.
Revenue from contracts on time and material basis is recognized as services are performed.
Contract balances
Revenue in excess of billing is classified as contract asset i.e. unbilled revenue while billing in excess of revenue is
classified as contract liability i.e. deferred revenue. Contract assets are classified as unbilled receivables when there is
unconditional right to receive cash, and only passage of time is required, as per contractual terms. Unbilled Revenue
are classified as non-financial asset if the contractual right to consideration is dependent on completion of contractual
milestones.
Deferred contract costs are incremental costs of obtaining a contract which are recognized as assets and amortized
over the benefit period.
(f) Income-tax
Current income tax
Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the
taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively
enacted, at the reporting date in the countries where the OFSS group operates and generates taxable income.
Current income tax relating to items recognized outside profit or loss is recognized either in other comprehensive
income or in equity. Current tax items are recognized in correlation to the underlying transaction either in other
comprehensive income or directly in equity. Management periodically evaluates positions taken in the tax returns with
respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where
appropriate, including provision required for uncertain tax treatment.
Current tax assets and current tax liabilities are offset if a legally enforceable right exists to set off current tax assets
against current tax liabilities.
Income tax consequence of dividends are linked more directly to past transactions or events that generates
distributable profit. Therefore, the OFSS group recognizes the income tax consequences of dividends in profit or
loss, other comprehensive income or equity according to where the OFSS group originally recognizes those past
transactions or events.
Deferred tax
Deferred tax is provided on temporary differences between the tax bases of assets and liabilities and their carrying
amounts for financial reporting purposes at the reporting date.
Deferred tax liabilities are recognized for all taxable temporary differences, except:
- When the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a transaction
that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor
taxable profit or loss.

- In respect of taxable temporary differences associated with investments in subsidiaries and associates, when
the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary
differences will not reverse in the foreseeable future.
Deferred tax assets are recognized for all deductible temporary differences, the carry forward of unused tax credits
and any unused tax losses. Deferred tax assets are recognized to the extent that it is probable that taxable profit will be
available against which the deductible temporary differences, and the carry forward of unused tax credits and unused
tax losses can be utilized, except:
- When the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of
an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects
neither the accounting profit nor taxable profit or loss.
- In respect of deductible temporary differences associated with investments in subsidiaries, and associates,
deferred tax assets are recognized only to the extent that it is probable that the temporary differences will reverse
in the foreseeable future and taxable profit will be available against which the temporary differences can be
utilized.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no
longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized.
Unrecognized deferred tax assets are re-assessed at each reporting date and are recognized to the extent that it has
become probable that future taxable profits will allow the deferred tax asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset
is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted
at the reporting date.
Deferred tax relating to items recognized outside profit or loss is recognized either in other comprehensive income or
in equity. Deferred tax items are recognized in correlation to the underlying transaction either in other comprehensive
income or directly in equity.
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets
against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.
Appendix C to Ind AS 12 Uncertainty over Income Tax Treatments:
The interpretation in Appendix C to Ind AS 12 Uncertainty over Income Tax Treatments addresses the accounting
for income taxes when tax treatments involve uncertainty that affects the application of Ind AS 12. It does not apply
to taxes or levies outside the scope of Ind AS 12, nor does it specifically include requirements relating to interest and
penalties associated with uncertain tax treatments. The interpretation specifically addresses the following:
- Whether an entity considers uncertain tax treatments separately
- The assumptions an entity makes about the examination of tax treatments by taxation authorities
- How an entity determines taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates
- How an entity considers changes in facts and circumstances
The OFSS group determines whether to consider each uncertain tax treatment separately or together with one or
more other uncertain tax treatments based on the approach that better predicts the resolution of the uncertainty. In
determining the approach that better predicts the resolution of the uncertainty, the OFSS group has considered, (a)
how it prepares its income tax filings and supports tax treatments; or (b) how the OFSS group expects the taxation
authority to make its examination and resolve issues that might arise from that examination.
This interpretation is effective from April 1, 2019. The OFSS group has evaluated the requirements of the amendment
and concluded that there is no impact on the retained earnings of the OFSS group as at April 1, 2019 as a result of this
interpretation. For impact of uncertain tax positions for the year ended March 31, 2020, refer note 16.
(g) Investment properties

Investment properties are measured initially and subsequently at cost. Though the OFSS group measures investment
property using cost based measurement, the fair value of investment property is disclosed annually in the notes which
form an integral part of the financial statements. Fair values are determined based on an evaluation performed by an
accredited external independent valuer applying a valuation technique as per the international norms and standards.
Investment properties are derecognized either when they have been disposed off or when they are permanently
withdrawn from use and no future economic benefit is expected from such disposal. The difference between the
net sale proceeds and the carrying amount of asset is recognized in statement of profit and loss in the period of
derecognition.
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(h) Non-current assets held for sale
The OFSS group classifies non-current assets and disposal groups as held for sale if their carrying amounts shall be
recovered principally through a sale rather than through continuing use. Sale transactions shall include exchanges of
non-current assets for other non-current assets when the exchange has commercial substance.
Non-current assets held for sale are measured at the lower of their carrying amount and the fair value less costs to sell.
Assets and liabilities classified as held for sale are presented separately in the balance sheet.
Property, plant and equipment and intangible assets once classified as held for sale are not depreciated or amortized.
All other notes to the financial statements primarily include amounts for continuing operations, unless otherwise
mentioned.
(i) Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. The fair value measurement is based on the presumption that
the transaction to sell the asset or transfer the liability takes place either:
- In the principal market for the asset or liability, or
- In the absence of a principal market, in the most advantageous market for the asset or liability
The principal or the most advantageous market must be accessible by the OFSS group.
The fair value of an asset or a liability is measured using the assumptions that market participants would use when
pricing the asset or liability, assuming that market participants act in their economic best interest. A fair value
measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits
by using the asset in its highest and best use or by selling it to another market participant that would use the asset in
its highest and best use.
The OFSS group uses valuation techniques that are appropriate in the circumstances and for which sufficient data
are available to measure fair value, so as to maximize the use of relevant observable inputs and minimize the use of
unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized
within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value
measurement as a whole:
- Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities
- Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is
directly or indirectly observable
unobservable
For assets and liabilities that are recognized in the financial statements on a recurring basis, the OFSS group determines
whether transfers have occurred between levels in the hierarchy by re-assessing categorization (based on the lowest
level input that is significant to the fair value measurement as a whole) at the end of each reporting period.
At the reporting date, the OFSS group analyses the movements in the values of assets and liabilities which are required
to be remeasured or re-assessed as per the accounting policies. For this analysis, the OFSS group verifies the major
inputs applied in the latest valuation by agreeing the information in the valuation computation to contracts and other
relevant documents.
The OFSS group also compares the change in the fair value of each asset and liability with relevant external sources
to determine whether the change is reasonable.
For the purpose of fair value disclosures, the OFSS group has determined classes of assets and liabilities on the basis of
the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.
(j) Financial instruments – initial recognition and subsequent measurement

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity
instrument of another entity. The OFSS group recognizes a financial asset or a liability in its balance sheet only when
the entity becomes party to the contractual provisions of the instrument.

Financial assets
Initial recognition and measurement

Financial assets are classified, at initial recognition, as financial assets measured at amortized cost, fair value through
other comprehensive income or fair value through profit or loss as appropriate. All financial assets are recognized
initially at fair value plus, in the case of financial assets not recorded at fair value through profit or loss, transaction
costs that are attributable to the acquisition of the financial asset.
Subsequent measurement
For purposes of subsequent measurement, financial assets of OFSS group are classified in three categories:
- Debt instruments measured at amortized cost
- Debt instruments at fair value through other comprehensive income (OCI)
- Debt instruments, derivatives and equity instruments at fair value through profit or loss
Debt instruments measured at amortized cost
This category is the most relevant to the OFSS group. Debt instruments are measured at amortized cost if the asset is
held within a business model whose objective is to hold financial assets in order to collect contractual cash flows and the
contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal
and interest on the principal amount outstanding. These financial assets are amortized using the effective interest
rate (EIR) method, less impairment. Amortized cost is calculated by taking into account any discount or premium on
acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included in finance income in
the consolidated statement of profit and loss. The losses arising from impairment are recognized in the consolidated
statement of profit and loss.
Debt instruments at fair value through OCI

Debt instruments are measured at fair value through other comprehensive income if the asset is held within a
business model whose objective is achieved by both collecting contractual cash flows and selling financial assets
and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding. The OFSS group has not designated any financial assets
at fair value through OCI.
Debt instruments at fair value through profit or loss
Debt instruments at fair value through profit or loss include assets held for trading and financial assets designated
upon initial recognition at fair value through profit or loss. Financial assets are classified as held for trading if they
are acquired for the purpose of selling or repurchasing in the near term. Derivatives, including separated embedded
derivatives, are also classified as held for trading unless they are designated as effective hedging instruments as
defined by Ind AS 109 Financial Instruments. Debt instruments at fair value through profit or loss are carried in the
statement of financial position at fair value with net changes in fair value recognized in the consolidated statement of
profit and loss.
Derecognition
A financial asset is derecognized i.e. removed from the OFSS group’s consolidated statement of financial position
when:
- The contractual rights to the cash flows from the financial asset expire or
- The OFSS group has transferred its contractual rights to receive cash flows from the asset or has assumed an
obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through’
arrangement; and either (a) the OFSS group has transferred substantially all the risks and rewards of the asset,
or (b) the OFSS group has neither transferred nor retained substantially all the risks and rewards of the asset, but
has transferred control of the asset.
When the OFSS group has transferred its rights to receive cash flows from an asset or has entered into a pass-through
arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither
transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the
OFSS group continues to recognize the transferred asset to the extent of the OFSS group’s continuing involvement. In
that case, the OFSS group also recognizes an associated liability. The transferred asset and the associated liability are
measured on a basis that reflects the rights and obligations that the OFSS group has retained.
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Impairment of financial assets
The OFSS group applies expected credit loss (ECL) model for measurement and recognition of impairment loss on
the financial assets and credit risk exposure. For trade receivables the OFSS group follows ‘simplified approach’ for
recognition of impairment loss allowance. The application of simplified approach does not require the OFSS group to
track changes in credit risk. Rather, it recognizes impairment loss allowance based on lifetime ECLs at each reporting
date, right from its initial recognition.
For recognition of impairment loss on other financial assets and risk exposure, the OFSS group determines that
whether there has been a significant increase in the credit risk since initial recognition. If credit risk has not increased
significantly, 12-month ECL is used to provide for impairment loss. However, if credit risk has increased significantly,
lifetime ECL is used. If, in a subsequent period, credit quality of the instrument improves such that there is no longer
a significant increase in credit risk since initial recognition, then the entity reverts to recognizing impairment loss
allowance based on 12-month ECL.
Lifetime ECL are the expected credit losses resulting from all possible default events over the expected life of a financial
instrument. The 12-month ECL is a portion of the lifetime ECL which results from default events that are possible
within 12 months after the reporting date.
The OFSS group uses a provision matrix to determine impairment loss allowance on portfolio of its trade receivables.
The provision matrix is based on its historically observed default rates over the expected life of the trade receivables
and is adjusted for forward-looking estimates. Further, the trade receivables have customer concentration across
the globe and therefore the OFSS group also considers the socio-economic conditions of the regions where the
customers are located.
On that basis, the OFSS group estimates the following provision matrix at the reporting date:
Ageing 0 - 30 31 - 60 61 - 90 91 - 180 181 - 360 More than

days days days days days 360 days
Africa 3.38% 14.68% 1.49% 7.89% 37.03% 48.65%
Asia Pacific 0.01% 0.27% 0.05% 1.29% 4.61% 27.29%
Europe & Middle East 0.01% 0.04% 0.06% 2.10% 2.10% 35.01%
United States of America & Latin America 0.07% 0.02% 0.11% 0.80% 13.41% 66.29%
At every reporting date, the historical observed default rates are updated and changes in the forward-looking estimates
are analyzed.
Interest income
Interest income is recognized using the effective interest method.
Financial liabilities are classified, at initial recognition, as financial liabilities at amortized cost or financial liabilities at fair
value through profit or loss, as appropriate. All financial liabilities are recognized initially at fair value and, in the case of
loans and borrowings and payables, net of directly attributable transaction costs.
The OFSS group’s financial liabilities include trade payables, accrued expenses, accrued compensation to employees,
advance from customers, dividend and dividend tax payable along with unpaid dividends.
The OFSS group measures all financial liabilities at amortized cost except for financial liabilities held for trading and
financial liabilities designated upon initial recognition as at fair value through profit or loss. Amortized cost is calculated
by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR.
Financial liabilities held for trading are measured at fair value through profit or loss. The OFSS group has not designated
any financial liability as at fair value through profit or loss.
Derecognition
A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. When
an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms
of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition
of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is
recognized in the consolidated statement of profit and loss.

Embedded derivatives
An embedded derivative is a component of a hybrid (combined) instrument that also includes a non-derivative
host contract – with the effect that some of the cash flows of the combined instrument vary in a way similar to a
standalone derivative. An embedded derivative causes some or all of the cash flows that otherwise would be required
by the contract to be modified according to a specified interest rate, financial instrument price, commodity price,
foreign exchange rate, index of prices or rates, credit rating or credit index, or other variable, provided in the case of
a nonfinancial variable that the variable is not specific to a party to the contract. Reassessment only occurs if there is
either a change in the terms of the contract that significantly modifies the cash flows that would otherwise be required
or a reclassification of a financial asset out of the fair value through profit or loss.
If the hybrid contract contains a host that is a financial asset within the scope of Ind AS 109, the OFSS group does
not separate embedded derivatives. Rather, it applies the classification requirements contained in Ind AS 109 to the
entire hybrid contract. Derivatives embedded in all other host contracts are accounted for as separate derivatives and
recorded at fair value if their economic characteristics and risks are not closely related to those of the host contracts
and the host contracts are not held for trading or designated at fair value through profit or loss. These embedded
derivatives are measured at fair value with changes in fair value recognized in profit or loss, unless designated as
effective hedging instruments.
(k) Derivative financial instruments and hedge accounting

Initial recognition and subsequent measurement
The OFSS group uses forward currency contracts to hedge its foreign currency risks. Such derivative financial
instruments are initially recognized at fair value on the date on which a derivative contract is entered into and are
subsequently remeasured at fair value. Derivatives are carried as financial assets when the fair value is positive and
as financial liabilities when the fair value is negative. Any gains or losses arising from changes in the fair value of
derivatives are taken directly to statement of profit and loss.
For the purpose of hedge accounting, hedges are classified as:
- Fair value hedges when hedging the exposure to changes in the fair value of a recognized asset or liability or an
unrecognized firm commitment
- Cash flow hedges when hedging the exposure to variability in cash flows that is either attributable to a particular
risk associated with a recognized asset or liability or a highly probable forecast transaction or the foreign currency
risk in an unrecognized firm commitment
- Hedges of a net investment in a foreign operation
The OFSS group enters into foreign currency forward contracts that is used to hedge risk of exposure of changes in
the fair value of trade receivables on account of foreign currency rate movement. These derivative contracts are not
designated as hedges and accounted for at fair value through profit or loss and are included in other income, net.
(l) Leases
OFSS group as a Lessee
The determination of whether an arrangement is (or contains) a lease is based on the substance of the arrangement
at the inception of the lease. The arrangement is, or contains, a lease if fulfilment of the arrangement is dependent on
the use of a specific asset or assets and the arrangement conveys a right to use the asset or assets, even if that right
is not explicitly specified in an arrangement.
The OFSS group recognizes right-of-use asset and a corresponding lease liability for all lease arrangements in which
the OFSS group is a lessee, except for a short term lease of 12 months or less and leases of low-value assets. For
short term lease and low-value asset arrangements, the OFSS group recognizes the lease payments as an operating
expense on straight-line basis over the lease term.
Certain lease arrangements include the options to extend or terminate the lease before the end of the lease
arrangement. Right-of-use assets and lease liabilities are measured according to such options when it is reasonably
certain that the OFSS group will exercise these options.
The right-of-use asset are recognized at the inception of the lease arrangement at the amount of the initial measurement
of lease liability adjusted for any lease payments made at or before the commencement date of lease arrangement
reduced by any lease incentives received, added by initial direct costs incurred and an estimate of costs to be incurred
87
by the OFSS group in dismantling and removing the underlying asset or restoring the underlying asset or site on
which it is located. The right-of-use assets are depreciated using the straight-line method from the commencement
date over the shorter of lease term or useful life of right-of-use asset. Estimated useful life of right-of-use assets is
determined on the basis of useful life of property, plant and equipment. Right-of-use assets are tested for impairment
whenever there is an indication that their carrying value may not be recoverable. Impairment loss, if any is recognized
in the statement of profit and loss account.
The lease liability is measured at amortized cost, at the present value of the future lease payments. The lease
payments are discounted using the interest rate implicit in the lease arrangement or, if not readily determinable,
at the incremental borrowing rate in the country of domicile of such leases. Lease liabilities are remeasured with
corresponding adjustments to right-of-use assets to reflect any reassessment or lease modifications.
OFSS group as a Lessor
Leases for which the OFSS group is a lessor is classified as finance or operating lease. If the terms of the lease
arrangement transfers substantially all the risks and rewards of ownership to the lessee, such lease arrangement is
classified as finance lease. All other leases are classified as operating leases.
In case of sub-lease, the OFSS group recognizes investment in sub-lease separately in the financial statements. The
sub-lease is classified as a finance or operating lease by reference to the right-of-use asset arising from such lease
arrangement. For operating leases, rental income is recognized on a straight line basis over the term of the lease
arrangement.
Transition
The OFSS group has adopted Ind AS 116 ‘Leases’ with effect from April 1, 2019 using the modified retrospective
method. Cumulative effect of initially applying the standard has been recognized on the date of initial application and
hence the OFSS group has not restated comparative information. The OFSS group has recorded Lease liability at the
present value of the future lease payments discounted at the incremental borrowing rate and the right-of-use asset
at an amount equal to the lease liability, adjusted by the amount of prepaid or accrued lease payments relating to that
lease recognized in the balance sheet immediately before the date of initial application.
The OFSS group has selected practical expedient for the following:
a) Not recognizing right-of-use asset and lease liability for leases having a lease term of 12 months or less as
on date of initial application and leases of low-value assets. The OFSS group recognizes the lease payments
associated with such leases as an expense over the lease term.
b) Excluded the initial direct cost from the measurement of the right of use asset at the date of initial application.
c) Ind AS 116 is applied only to those contracts that were previously identified as leases under Ind AS 17.
Accordingly, the OFSS group has recognized Right-of-use asset of ₹ 1,605.51 million and a lease liability of ₹ 1,562.11
million in the financial statements on the date of initial application. There is no impact on the retained earnings. Due
to adoption of Ind AS 116, the nature of expenses have changed from rent in previous periods to depreciation cost
on right-of-use asset and finance cost for interest on lease liability. During the year ended March 31, 2020, the OFSS
group has recognized depreciation on right-of-use asset of ₹ 486.03 million along with interest on lease liability of
₹ 99.85 million. The effect of this standard is not significant on the profit for the period of the OFSS group. Further as
per Ind AS 116, the principal portion of lease payments and interest on lease liability has been disclosed under the
cash outflow from financing activities. Operating lease payments as per Ind AS 17 - Leases were disclosed under the
cash outflow from operating activities.
The weighted average incremental borrowing rate applied to lease liabilities recognized in the balance sheet at the
date of initial application is 7.29%.
The difference between the future minimum lease commitments under Ind AS 17 - Leases reported as of
March 31, 2019 and the value of lease liability recorded as on April 1, 2019 on adoption of Ind AS 116 - Leases is
primarily on account of discounting of the lease liability to its present value in accordance with Ind AS 116 and the
exclusion of commitments for leases to which the OFSS group has chosen to apply the practical expedient as per the
standard.
(m) Share based payments

Selected employees of the OFSS group also receive remuneration in the form of share-based payments under stock
option program of the Company.
The cost of equity-settled transactions is determined by the fair value at the date when the grant is made using an
appropriate valuation model. The cost is recognized in employee benefits expense, together with a corresponding

increase in ‘employee stock options outstanding’ in equity, over the period in which the performance and/or service
conditions are fulfilled. The cumulative expense recognized for equity-settled transactions at each reporting date until
the vesting date reflects the extent to which the vesting period has expired and the OFSS group’s best estimate of the
number of equity instruments that will ultimately vest.
The consolidated statement of profit and loss expense or credit recognized in employee benefit expense represents
the movement in cumulative expense recognized as at the beginning and end of the year.
Oracle Corporation, the ultimate holding company of Oracle Financial Services Software Limited has extended its
Stock Option program (ESOP) to selected employees of OFSS’s subsidiaries and branches, who are working outside
India. The cost of equity-settled transactions is also determined by the fair value at the date when the grant is made
using an appropriate valuation model. The cost is recognized in employee benefit expenses over the period in which
the performance and/or service conditions are fulfilled with a corresponding impact under statement of changes in
equity as Contribution from Ultimate Holding Company. Oracle Corporation has also extended its Employee Stock
Purchase Plan (ESPP) to employees of OFSS group. Under the plan, the employees are eligible to purchase the
shares of Oracle Corporation at discounted price. The discount amount on the shares purchased during the year by
employees is treated as Contribution from ultimate holding company.
(n) Provisions
Provisions are recognized when the OFSS group has a present obligation (legal or constructive) as a result of a past
event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation
and a reliable estimate can be made of the amount of the obligation. The expense relating to a provision is presented
in the statement of profit and loss net of any reimbursement.
If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects,
when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the
passage of time is recognized as a finance cost.
(o) Retirement and other employee benefits

Retirement benefit in the form of provident fund is a defined contribution scheme. The OFSS group has no obligation,
other than the contribution payable to the provident fund. The OFSS group recognizes contribution payable to the
provident fund scheme as an expense, when an employee renders the related service. If the contribution payable to the
scheme for service received before the balance sheet date exceeds the contribution already paid, the deficit payable
to the scheme is recognized as a liability after deducting the contribution already paid. If the contribution already
paid exceeds the contribution due for services received before the balance sheet date, then excess is recognized as
an asset to the extent that the pre-payment will lead to, for example, a reduction in future payment or a cash refund.
Certain eligible employees of the OFSS group on Indian payroll are entitled to superannuation, a defined contribution
plan. The OFSS group makes monthly contributions until retirement or resignation of the employee which are
recognized as an expense when incurred. The OFSS group has no further obligations beyond its monthly contributions,
the corpus of which is invested with the Life Insurance Corporation of India.
Compensated absences which are expected to occur within twelve months after the end of the period in which
employee renders the related services are recognized as undiscounted liability at the balance sheet date. The expected
cost of compensated absences which are not expected to occur within twelve months after the end of the period in
which employee renders related services are recognized at the present value based on actuarial valuation performed
by an independent actuary at each balance sheet date using projected unit credit method.
The OFSS group operates a defined benefit gratuity plan in India, which requires contributions to be made to a fund
administered and managed by the LIC to fund the gratuity liability. Under this scheme, the obligation to pay gratuity
remains with the OFSS group, although LIC administers the scheme.
The cost of providing benefits under the defined benefit plan is determined using the projected unit credit method.
Remeasurements, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included
in net interest on the net defined benefit liability and the return on plan assets (excluding amounts included in net
interest on the net defined benefit liability), are recognized immediately in the balance sheet with a corresponding
debit or credit to retained earnings through OCI in the period in which they occur. Remeasurements are not reclassified
to profit or loss in subsequent periods.
89
Past service costs are recognized in profit or loss on the earlier of:
- The date of the plan amendment or curtailment, and
- The date that the OFSS group recognizes related restructuring costs.
Net interest is calculated by applying the discount rate to the net defined benefit liability or asset. The OFSS group
recognizes the following changes in the net defined benefit obligation as an expense in the consolidated statement
of profit and loss:
- Service costs comprising current service costs, past-service costs, gains and losses on curtailments and non-
routine settlements; and
- Net interest expense or income.
(p) Treasury shares

The Company had created an Employee Benefit Trust (‘EBT’) for providing share-based payment to its employees.
The EBT was used as a vehicle for distributing shares to employees under the employee remuneration schemes. The
shares held by EBT are treated as treasury shares.
Own equity instruments (treasury shares) are recognized at cost and deducted from equity. Gain or loss is recognized
in Other Equity on the sale of the Company’s own equity instruments.
(q) Cash dividend to equity shareholders of the Company

The Company recognizes a liability to make cash or noncash distributions to equity shareholders when the distribution
is authorized and the distribution is no longer at the discretion of the Company. As per the Act, a distribution of
interim dividend is authorized when it is approved by the Board of Directors and final dividend is authorized when it is
approved by the shareholders of the Company. A corresponding amount is recognized directly in other equity.
(r) Earnings per share

The earnings considered in ascertaining the OFSS group’s earnings per share comprise the net profit after tax. The
number of shares used in computing basic earnings per share is the weighted average number of shares outstanding
during the year. The number of shares used in computing diluted earnings per share comprises the weighted average
number of shares considered for deriving basic earnings per share, and also the weighted average number of shares,
if any which would have been issued on the conversion of all dilutive potential equity shares. The weighted average
number of shares and potentially dilutive equity shares are adjusted for the bonus shares and sub-division of shares.
For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity
shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of
all dilutive potential equity shares.
(s) Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and short term investments with an original maturity of three
months or less.

Note 3: Property, plant and equipment
Year ended March 31, 2020 (Amounts in ₹ million)
Particulars Gross carrying value Depreciation Net
carrying
value
As at Additions Sale/ Translation As at As at For the Sale/ Translation As at As at
April 01, deletions gain (loss) March 31, April 01, year deletions (gain) loss March 31, March 31,
2019 2020 2019 2020 2020
Freehold Land 436.31 − − − 436.31 − − − − − 436.31
Improvement to leasehold premises 486.45 − 2.06 13.15 497.54 451.97 12.35 2.06 13.15 475.41 22.13
Buildings 2,089.95 − − − 2,089.95 1,063.96 104.06 − − 1,168.02 921.93
Computer equipments 2,700.95 352.76 167.19 5.77 2,892.29 2,000.75 388.12 166.91 4.33 2,226.29 666.00
Office equipments 276.57 4.68 16.12 0.35 265.48 252.24 9.70 16.31 0.20 245.83 19.65
Electricals and other installations 925.56 0.06 0.15 − 925.47 891.31 10.53 0.15 − 901.69 23.78
Furniture and fixtures 1,032.01 73.52 11.16 6.05 1,100.42 837.48 53.02 11.16 5.68 885.02 215.40
Total 7,947.80 431.02 196.68 25.32 8,207.46 5,497.71 577.78 196.59 23.36 5,902.26 2,305.20
Capital work-in-progress 0.49
2,305.69

carrying
value
April 01, deletions gain (loss) March 31, April 01, year deletions (gain) loss March 31, March 31,
2018 2019 2018 2019 2019
Freehold Land 436.31 − − − 436.31 − − − − − 436.31
Improvement to leasehold premises 614.36 − 149.82 21.91 486.45 538.04 41.88 149.81 21.86 451.97 34.48
Buildings 2,077.87 14.48 2.40 − 2,089.95 961.03 104.11 1.18 − 1,063.96 1,025.99
Furniture and fixtures 995.47 92.88 63.48 7.14 1,032.01 829.38 64.36 63.39 7.13 837.48 194.53
Total 7,429.92 809.01 329.46 38.33 7,947.80 5,249.85 537.17 327.15 37.84 5,497.71 2,450.09
2,454.62
91
Note 4: Right-of-use asset
carrying
value
As at Adjustment Additions Sale/ Translation As at As at For the Sale/ Translation As at As at
April 01, on adoption deletions gain (loss) March 31, April 01, year deletions (gain) loss March 31, March 31,
2019 of Ind AS 2020 2019 2020 2020
116 'Leases'
Right-of-use asset − 1,605.51 8.26 29.50 45.43 1,629.70 − 486.03 5.97 15.24 495.30 1,134.40

Total − 1,605.51 8.26 29.50 45.43 1,629.70 − 486.03 5.97 15.24 495.30 1,134.40
Note 5: Investment property

carrying
value
As at Additions Sale/ Translation As at As at For the Impairment Sale/ Translation As at As at
April 01, deletions gain (loss) March 31, April 01, Year loss deletions (gain) loss March 31, March 31,
2019 2020 2019 2020 2020
Freehold land 102.00 − − − 102.00 − − − − − − 102.00
Total 102.00 − − − 102.00 − − − − − − 102.00

carrying
value
As at Additions Sale/ Translation As at As at For the Impairment Sale/ Translation As at As at
April 01, deletions gain (loss) March 31, April 01, Year loss deletions (gain) loss March 31, March 31,
2018 2019 2018 2019 2019
Freehold land 102.00 − − − 102.00 − − − − − − 102.00
Total 102.00 − − − 102.00 − − − − − − 102.00

The OFSS group's investment property consists of a portion of land at Pune, India.
The fair value of the investment property as at March 31, 2020 and March 31, 2019 is based on valuations performed by Rakesh Narula & Co; an accredited independent valuer.
Rakesh Narula & Co. is one of the senior most and reputed valuer in the field of asset valuation. Rakesh Narula & Co. has been carrying out valuation as per the International norms
and Standards. The fair value of the above investment property as at March 31, 2020 and March 31, 2019 is ₹ 204.30 million and ₹ 245.00 million respectively.
The direct operating expenses incurred in relation to investment property are ₹ 4.13 million for the financial year ended March 31, 2020 as well as March 31, 2019. These
expenses are included in repairs and maintenance under note 22: Other operating expenses.
The OFSS group has no restrictions on the realizability of its investment properties and has no contractual obligations to purchase, construct or develop investment properties or
for repairs, maintenance and enhancements. Fair value hierarchy disclosures for investment properties have been provided in note 37 on fair value measurement.
Reconciliation of fair value: (Amounts in ₹ million)

Fair Value of Investment Property as on April 1, 2018 237.50
Adjustment towards Fair Values for the financial year ended March 31, 2019 7.50
Fair Value of Investment Property as on March 31, 2019 245.00
Adjustment towards Fair Values for the financial year ended March 31, 2020 (40.70)
Description of valuation techniques used and key inputs to valuation on investment properties (Amounts in ₹)
Investment property Valuation technique Significant unobservable inputs Range (weighted average)
March 31, 2020 March 31, 2019
Freehold land Market approach Estimated market rate per sq. mt. of freehold land ₹ 17,045 to ₹ 15,909 to
₹ 23,333 ₹ 23,620
(Sale Comparison Method) Negotiation, location and physical adjustments -20% to 0% -15% to 0%
Final adjusted price per sq. mt. ₹ 15,238 to ₹ 15,909 to
₹ 18,667 ₹ 17,007
The fair market value of the portion of land is computed using the market approach (Sale Comparison Method). The prevalent market rates of comparable property in the vicinity
are considered to estimate the market value of the investment property. To estimate the market rate of land, a local enquiry as well as a market survey has been conducted with
property dealers, brokers, owners of similar property in the surrounding areas and the rates from Joint Sub-Registrars' Office for actual transactions and the ready reckoner rates
have also been considered. Weightages to additional factors like shape, size, location, frontage, access to main road and the demand and supply of similar properties have been
considered while computing the market value of the investment property.
93
Note 6: Goodwill
Particulars Gross carrying value Amortization and impairment losses Net
carrying
value
April 01, deletions gain (loss) March 31, April 01, Year deletions (gain) loss March 31, March 31,
2019 2020 2019 2020 2020
Goodwill on consolidation [Refer 6,086.63 − − − 6,086.63 − − − − − 6,086.63

note 32]

Total 6,086.63 − − − 6,086.63 − − − − − 6,086.63

Particulars Gross carrying value Amortization and impairment losses Net
carrying
value
April 01, deletions gain (loss) March 31, April 01, Year deletions (gain) loss March 31, March 31,
2018 2019 2018 2019 2019
Goodwill on consolidation [Refer 6,086.63 − − − 6,086.63 − − − − − 6,086.63

note 32]
Total 6,086.63 − − − 6,086.63 − − − − − 6,086.63

Note 7: Financial assets
March 31, 2020 March 31, 2019
Non-current
Other financial assets at fair value through profit or loss
Investment in Sarvatra Technologies Private Limited (Unquoted)*
242,240 (March 31, 2019 - 242,240) equity shares of ₹ 10 each, − −
fully paid-up
Other financial assets measured at amortized cost
Deposits for premises and others 596.22 649.80
Tax deducted at source paid under protest 809.22 −
Investment in sublease of right-of-use asset 41.65 −
1,447.09 649.80
1,447.09 649.80
Current
Derivative instruments at fair value through profit or loss
Derivatives not designated as hedges
Foreign exchange forward contract, net** − 20.37
− 20.37
Unbilled revenue 2,158.37 3,061.03
Other receivables and advances 162.52 226.22
2,501.59 3,336.69
2,501.59 3,357.06
*The OFSS group had made an investment of ₹ 45.00 million and the same has been fair valued as at the balance sheet date.
**The OFSS group entered into foreign exchange forward contracts with the intention of reducing the foreign exchange risk of Trade
receivable, these contracts are not designated in hedge relationships and are measured at fair value through profit or loss.
Breakup of financial assets carried at amortized cost
March 31, 2020 March 31, 2019
Trade receivables [Refer note 8] 9,253.66 9,474.76
Cash and bank balances [Refer note 9] 44,968.11 28,279.62
58,170.45 41,740.87
95
Note 8: Trade receivables
March 31, 2020 March 31, 2019
Secured, considered good − −
Unsecured, considered good 9,587.42 9,795.68
Credit impaired 26.73 128.10
9,614.15 9,923.78
Impairment allowance
Unsecured, considered good (333.76) (320.92)
Credit impaired (26.73) (128.10)
(360.49) (449.02)
9,253.66 9,474.76
No trade receivables are due from directors or other key managerial personnel of the Company either severally or
jointly with any other person. Trade receivables are non-interest bearing and are generally on terms of 30 to 90 days.
Note 9: Cash and bank balances

March 31, 2020 March 31, 2019
(a) Cash and cash equivalents
Balances with banks:
In current accounts* 12,935.04 9,734.89
In deposit accounts with original maturity of less than 3 months 300.35 1,711.17
In unclaimed dividend accounts 80.55 116.63
13,315.94 11,562.69
(b) Other bank balances
In deposit accounts with original maturity of more than 3 months but 31,650.55 16,715.34
less than 12 months**
In margin money deposit accounts 1.62 1.59
31,652.17 16,716.93
44,968.11 28,279.62
*Current account includes ₹ 0.76 million (March 31, 2019 - ₹ 0.08 million) on account of restricted cash and bank balances held by
i-flex Employee Stock Option Trust controlled by the Company.
**Deposit accounts with original maturity of more than 3 months but less than 12 months includes ₹ 1,022.92 million
(March 31, 2019 - ₹ 950.38 million) on account of restricted cash and bank balances held by i-flex Employee Stock Option Trust
controlled by the Company.
Cash at banks earns interest at floating rates based on the daily bank deposit rates and the daily balances. Time deposits
are placed for varying periods ranging from 7 days to 364 days, depending on the immediate cash requirements of
the OFSS group. The time deposits earn interest at the respective deposit rates.
Changes in liabilities are arising from financing activities is primarily due to repayment of lease liabilities [Refer
note 29 - Leases].
Note 10: Other assets

March 31, 2020 March 31, 2019
Non-current
GST, VAT, service tax and other indirect taxes 301.15 460.57
Prepaid expenses 24.91 192.96
Deferred contract cost 63.57 58.35
389.63 711.88
Current
2,225.47 2,066.01

Note 11: Equity share capital
March 31, 2020 March 31, 2019
Authorized:
100,000,000 (March 31, 2019 - 100,000,000) equity shares of ₹ 5 each 500.00 500.00
Issued, subscribed and fully paid-up:
(a) The Company has only one class of equity shares having a par value of ₹ 5 per share. Each holder of equity
shares is entitled to one vote per share. In the event of liquidation of the Company, the holders of equity shares
will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The
distribution will be in proportion to the number of equity shares held by the shareholders.
(b) Details of shareholders holding more than 5% equity shares in the Company
Name and relationship of shareholder: March 31, 2020 March 31, 2019
Oracle Global (Mauritius) Limited, holding company
Number of equity shares 63,051,197 63,051,197
% of equity shares 73.42% 73.53%
As per records of the Company, including its register of shareholders/ members and other declarations received
from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial
ownerships of equity shares.
(c) Reconciliation of equity shares outstanding at the beginning and at the end of the year
No. of equity Amounts in ₹

shares million
Outstanding as at April 1, 2018 85,346,293 426.73
Issued during the year ended March 31, 2019 under the employee 362,254 1.82
stock option plan (ESOP)
Sale of treasury shares during the year ended March 31, 2019 43,440 0.21
Outstanding as at March 31, 2019 85,751,987 428.76
Sale of treasury shares during the year ended March 31, 2020 27,160 0.14
(d) Refer note 30 (b) for details of shares reserved for issue under the employee stock option plan (ESOP) of the
Company.
Note 12: Other equity

March 31, 2020 March 31, 2019
Share application money pending allotment# 0.00 0.48
Securities premium 15,500.79 15,141.21
General reserve 10,145.19 10,145.19
Employee stock options outstanding 1,726.79 1,647.37
Contribution from Ultimate Holding Company 263.88 144.52
Gain on Treasury shares 607.71 522.70
Retained earnings 34,906.20 20,328.27
Other comprehensive income 2,115.84 1,006.89
65,266.40 48,936.63
#
March 31, 2020 - represents amount less than ₹ 0.01 million.
97
Share application money pending allotment
Share application money pending allotment represents the amount received on exercise of stock options by the
eligible employees under the prevailing ESOP schemes of the Company, on which allotment is yet to be made.
Share application money pending allotment for the year ended March 31, 2020 represents the money received from
employees of the Company towards exercise of 81 OFSS Stock Units (“OSUs”) at the exercise price of ₹ 5 under Oracle
Financial Services Software Limited Stock Plan 2014 (“OFSS Stock Plan 2014”). Each stock option and OSU is entitled
for one equity share of ₹ 5 each of the Company.
employees of the Company towards exercise of 250 stock options at the exercise price of ₹ 1,930 under Employee
Stock Option Plan 2011 Scheme (“Scheme 2011”) and 299 OFSS Stock Units (“OSUs”) at the exercise price of ₹ 5
under Oracle Financial Services Software Limited Stock Plan 2014 (“OFSS Stock Plan 2014”). Each stock option and
OSU is entitled for one equity share of ₹ 5 each of the Company.
Securities premium
Securities premium represents amount received in excess of face value on issue of shares by the Company. It also
includes transfer of stock compensation related to options exercised from employee stock options outstanding
(other equity). The securities premium will be utilized in accordance with the provisions of the Act.
General reserve
General reserve represents the amount of profits appropriated by the Company.
Employee stock options outstanding
Selected employees of the OFSS group also receive remuneration in the form of share-based payments under stock
option program of the Company. Employee stock options outstanding represents the fair value of equity-settled
transactions, calculated at the date when the grant is made using an appropriate valuation model and recognized over
the period in which the performance and/or service conditions are fulfilled.
Contribution from Ultimate Holding Company
Oracle Corporation, the Ultimate Holding Company of Oracle Financial Services Software Limited has extended
its stock option program to selected employees of OFSS’s overseas subsidiaries and branches. Contribution from
Ultimate Holding Company represents the fair value of equity-settled transactions; calculated at the date when
the grant is made using an appropriate valuation model and recognized over the period in which the performance
and/or service conditions are fulfilled.
Oracle Corporation has also extended its Employee Stock Purchase Plan (ESPP) to employees of OFSS group. Under
the plan, the employees are eligible to purchase the shares of Oracle Corporation at discounted price. The discount
amount on the shares purchased during the year by employees is treated as Contribution from Ultimate Holding
Company.
Gain on Treasury shares
Company's own equity instruments (treasury shares) are recognized at cost and deducted from equity. Gain or loss
on the sale of the Company’s own equity instruments is recognized in Other Equity.
Retained earnings
Retained earnings represents the undistributed earnings, net of amounts transferred to general reserve; if any.
Note: The Board of Directors have declared an interim dividend on May 8, 2020 of ₹ 180 per equity share for the
year ended March 31, 2020. This would result in a cash outflow of approximately ₹ 15,458.97 million.
Other comprehensive income represents the exchange differences arising on translation of foreign subsidiaries and
branches for consolidation and the remeasurements of the defined benefit gratuity plan; comprising of actuarial gains
and losses on its net liabilities / assets.

Note 13: Financial liabilities
March 31, 2020 March 31, 2019
(a) Trade Payables measured at amortized cost
Current
- Payable to micro and small enterprises* 2.65 3.17
- Payable to others 352.27 564.48
354.92 567.65
(b) Other financial liabilities
Non-current
Financial liabilities measured at amortized cost
Accrued compensation to employees 45.55 32.38
45.55 32.38
Current
Foreign exchange forward contract, net** 62.44 −
62.44 −
Other financial liabilities measured at amortized cost
Accrued compensation to employees 805.75 1,102.85
Accrued Expenses 1,130.40 1,286.29
Capital creditors 35.82 144.70
Advance from customers 80.34 73.00
Unpaid dividends*** 80.55 116.63
2,132.86 2,723.47
2,195.30 2,723.47
*The identification of Micro and Small Enterprises is based on Management's knowledge of their status.
Dues to micro and small enterprises - As per Micro, Small and Medium Enterprises Development Act, 2006
('MSMED' Act)
March 31, 2020 March 31, 2019
- Principal amount remaining unpaid to any supplier as at the end of the 2.65 3.17
year
- Amount of interest due remaining unpaid to any supplier as at the end − −
of the year
- Amount of interest paid under MSMED Act, 2006 along with the − −
amounts of the payment made to the supplier beyond the appointed
day during the year
- Amount of interest due and payable for the period of delay in making − −
payment (where the principal has been paid but interest under the
MSMED Act, 2006 not paid)
- Amount of interest accrued and remaining unpaid at the end of year − −
- Amount of further interest remaining due and payable even in the − −
succeeding year
2.65 3.17
**The OFSS group entered into foreign exchange forward contracts with the intention of reducing the foreign exchange risk of Trade
receivable, these contracts are not designated in hedge relationships and are measured at fair value through profit or loss.
***There is no amount due and outstanding as at balance sheet date to be credited to the Investor Education and Protection Fund.
99
Terms and conditions of financial liabilities:
- Trade payables are non-interest bearing and are normally settled on 30-day terms
- Other financial liabilities are normally settled as and when due
Note 14: Other liabilities

March 31, 2020 March 31, 2019
Non-current
Deferred Revenue − 10.25
Deferred Rent − 150.37
− 160.62
Current
Deferred Revenue 4,317.89 4,401.16
Withholding and other taxes 211.69 213.83
Other statutory dues 438.23 433.33
4,967.81 5,064.67
Note 15: Provisions

March 31, 2020 March 31, 2019
Non-current
For gratuity [Refer note 31] 1,198.74 1,005.21
1,198.74 1,005.21
Current
For gratuity [Refer note 31] 141.95 125.60
For compensated absence 1,149.11 1,164.43
1,291.06 1,290.03
Note 16: Income taxes

(a) The major components of income tax expense for the year ended March 31, 2020 and March 31, 2019 are:
March 31, 2020 March 31, 2019
(i) Profit or loss section
Current taxes 6,315.25 8,206.10
Deferred tax 1,585.39 604.79
Income tax expense reported in the statement of profit and loss 7,900.64 8,810.89
(ii) Other Comprehensive Income (OCI) section

Deferred tax on actuarial gain on gratuity fund (23.38) 14.07
Income tax expense charge reported in Other Comprehensive Income (23.38) 14.07
Deferred tax charge for the year ended March 31, 2020 and March 31, 2019 relates to origination and reversal
of temporary differences.

(b) Reconciliation of tax expense and accounting profit for the year ended March 31, 2020 and March 31, 2019:
March 31, 2020 March 31, 2019
Enacted tax rates in India 25.17% 34.94%
Computed expected tax expenses 5,668.54 7,921.76
Tax effect
of earlier years* (905.13) (14.42)
on income at different rates (65.98) (353.31)
on undistributed profits 1,432.64 124.98
on non-deductible expenses for tax purpose 137.80 210.96
on weighted deduction for tax purpose − (454.49)
Effect of rate change 269.19 −
Overseas taxes 1,390.25 1,447.45
Others (26.67) (72.04)
Income tax expense reported in consolidated statement of profit and loss 7,900.64 8,810.89
The Company has exercised the option permitted under Section 115BAA of the Indian Income Tax Act, 1961
as introduced by The Taxation Laws (Amendment) Ordinance, 2019. Accordingly, the Company has recognized
provision for income tax and remeasured its deferred tax asset at the rate prescribed in the said section. Impact
of this change has been recognized in the consolidated statement of profit and loss account for the year ended
March 31, 2020.
*The tax expense for year ended March 31, 2020 includes reversal of tax expense of ₹ 354.21 million which was
recognized in the previous year, resulting from the remeasurement of the tax liability pursuant to changes in the
US tax legislations during the current year.
(c) The tax effect of significant temporary differences that resulted in net deferred tax asset are as follows:
March 31, 2020 March 31, 2019
Deferred tax assets
Difference between book and tax depreciation 110.23 114.89
Provision for compensated absence 252.08 289.18
Provision for gratuity 310.14 382.90
Impairment loss on financial assets 89.67 172.21
Net operating loss 72.07 87.96
Tax on undistributed profits ‒ (542.92)
Other timing differences 179.49 112.81
1,013.68 617.03
Deferred tax liability
Difference between book and tax depreciation ‒ ‒
Tax on undistributed profits (1,975.56) (28.17)
Other timing differences ‒ (1.63)
(1,975.56) (29.80)
Net deferred tax (liability) asset (961.88) 587.23
The deferred tax charge of the OFSS group for year ended March 31, 2020 is ₹ 1,585.39 million. OFSS group
recognises deferred tax liability on the undistributed profits of subsidiaries by assessment of the undistributed
profits which are expected to be distributed in the foreseeable future for each subsidiary as at every year
end. During the year ended March 31, 2020, the OFSS group has reassessed its estimate of the quantum of
undistributed profits of all the subsidiaries and based on its reassessment has recorded deferred tax expense
of ₹ 1,432.62 million, including ₹ 1,252.33 million pertaining to earlier years. This deferred tax charge of
₹ 1,432.62 million, forms part of the deferred tax charge year ended March 31, 2020 of OFSS group as
mentioned hereinabove.
101
Deferred tax asset and deferred tax liabilities have been offset wherever the OFSS group has a legally enforceable
right to set off current tax assets against current tax liabilities and where the deferred tax assets and deferred
tax liabilities relate to income taxes levied by the same taxation authority. The unused tax losses having various
expiry dates for which no deferred tax asset is recognized in the balance sheet amounts to ₹ 2,012.81 million
(March 31, 2019 - ₹ 1,320.99 million).
(d) Reconciliation of net deferred tax asset is as follows:

March 31, 2020 March 31, 2019
Balance, beginning of year 587.23 1,222.35
Tax (expense) on adoption of Ind AS 115 'Revenue from Contracts with − (26.40)
Customers'
Tax (expense) during the year recognized in profit or loss (1,585.39) (604.79)
Tax income (expense) during the year recognized in OCI 23.38 (14.07)
Translation differences 12.90 10.14
Balance, end of the year (961.88) 587.23
(e) Uncertain tax positions
Upon adoption of the Appendix C on “Uncertainty over Income-tax Treatments” of Ind AS 12, Income Taxes, the
OFSS group has reassessed during the year ended March 31, 2020 its estimate of uncertain income-tax position.
Based on its reassessment, during the year ended March 31, 2020, the OFSS group has recorded net tax expense
of ₹ 485.13 million, including charge of ₹ 284.51 million pertaining to earlier years. Consequent to the tax expense,
during the year ended March 31, 2020, the OFSS group has recognized the related interest expense of ₹ 373.80
million, including ₹ 269.75 million pertaining to earlier years, which has been disclosed as part of finance cost.
Further, the OFSS group in the year ended March 31, 2020, has reversed income tax provisions pertaining to
earlier years of ₹ 720.27 million arising out of adjudication of certain disputed matters in favour of the OFSS
group and its reassessment of existing income tax position.
The current tax expense of the OFSS group for the year ended March 31, 2020 of ₹ 6,315.25 million includes
the income tax expense of ₹ 485.13 million for the year ended March 31, 2020 and reversals of income tax
provisions of ₹ 720.27 million for the year ended March 31, 2020 arising on account of reassessment as
mentioned above, thereby having a resultant impact of net tax credit of ₹ 235.14 million in the year ended
March 31, 2020.
Note 17: Revenue from operations

March 31, 2020 March 31, 2019
Product licenses and related activities 43,145.69 43,527.29
IT solutions and consulting services 4,275.92 4,945.07
Business process outsourcing services 1,191.15 1,116.67
48,612.76 49,589.03
Note 18: Finance income

March 31, 2020 March 31, 2019
Interest on financial assets measured at amortized cost:
Balance with banks in current and deposit accounts 1,597.02 1,270.47
Investment in sublease 5.97 −
Others 1.87 −
1,658.14 1,319.73

Note 19: Other income, net
March 31, 2020 March 31, 2019
Fair value gain on derivatives not designated as hedges (119.10) (56.89)
Foreign exchange gain, net 52.98 283.86
Profit on sale of fixed assets, net 0.31 0.51
Miscellaneous income 181.06 213.71
115.25 441.19
Note 20: Employee benefit expenses

March 31, 2020 March 31, 2019
Salaries and bonus 18,778.02 19,518.42
Contribution to provident and other funds 1,006.94 975.94
Stock compensation expense 544.01 610.67
Staff welfare expenses 849.04 853.07
21,178.01 21,958.10
Note 21: Finance cost

March 31, 2020 March 31, 2019
Interest on lease liability 99.85 −
Interest on income tax 373.80 −
473.65 −
Note 22: Other operating expenses

March 31, 2020 March 31, 2019
Application software 34.23 34.71
Communication expenses 71.05 94.02
Rent 109.99 665.58
Power 209.57 210.37
Insurance 34.63 33.63
Repairs and maintenance:
Buildings and leasehold premises 47.87 38.00
Computer equipments 16.39 9.74
Others 79.28 155.98
Rates and taxes 50.24 90.03
Impairment loss (reversed) on contract assets (107.23) (628.50)
Impairment loss on other financial assets 7.06 3.42
Bad debts 200.18 865.89
Corporate Social Responsibility expenditure [Refer note below] 359.24 324.83
Miscellaneous expenses 327.11 328.09
1,439.61 2,225.79
As per the requirements of Section 135 of the Companies Act, 2013 the OFSS group was required to spend an
amount of ₹ 358.93 million (March 31, 2019 - ₹ 324.76 million) on Corporate Social Responsibility expenditure
based on the average net profits of the three immediately preceding financial years. The OFSS group has spent an
amount of ₹ 359.24 million (March 31, 2019 - ₹ 324.83 million) against Corporate Social Responsibility expenditure.
103
Note 23: Net equity dividend remitted in foreign exchange
March 31, 2020 March 31, 2019
Year of remittance (ending on) − March 31, 2019
Period to which it relates − March 31, 2018
Number of non resident shareholders − 1
Number of equity shares on which dividend was due − 63,051,197
Amount remitted (in US$ million) − 114.05
Amount remitted (in ₹ million) − 8,196.66
Note 24: Reconciliation of basic and diluted shares used in computing earnings per share
(Number of equity shares)
March 31, 2020 March 31, 2019
Weighted average shares outstanding for basic earnings per share 85,823,066 85,582,423
Add: Effect of dilutive stock options 362,046 436,875
Weighted average shares outstanding for diluted earnings per share 86,185,112 86,019,298
Note 25: Disclosure on revenue from operations

(a) Disaggregate revenue information
The table below presents disaggregated revenues from contracts with customers by geography, streams and
type of contract for each of our business segments.

Particulars Products Services BPO - Services Total
Revenue by Geography
India 2,853.89 1.37 27.02 2,882.28
Outside India
Americas
United States of America 9,073.15 2,780.10 1,164.13 13,017.38
Rest of America 3,154.95 48.89 − 3,203.84
Europe 7,173.97 765.15 − 7,939.12
Asia Pacific 12,035.87 495.65 − 12,531.52
Middle East and Africa 8,853.86 184.76 − 9,038.62
43,145.69 4,275.92 1,191.15 48,612.76
Revenue by Streams and type of Contract
License Fees 5,573.04 − − 5,573.04
Maintenance Fees 13,909.79 − − 13,909.79
Consulting fees
Fixed Price 12,597.68 1,351.19 − 13,948.87
Time & Material Basis 11,065.18 2,924.73 1,191.15 15,181.06
43,145.69 4,275.92 1,191.15 48,612.76

Particulars Products Services BPO - Services Total
Revenue by Geography
India 2,713.55 26.30 18.98 2,758.83
Outside India
Americas
United States of America 9,764.18 2,998.63 1,097.69 13,860.50
Rest of America 2,969.06 112.16 − 3,081.22
Europe 6,759.15 1,081.87 − 7,841.02
Asia Pacific 12,361.56 508.66 − 12,870.22
Middle East and Africa 8,959.79 217.45 − 9,177.24
43,527.29 4,945.07 1,116.67 49,589.03
Revenue by Streams and type of Contract
License Fees 5,443.04 − − 5,443.04
Maintenance Fees 13,496.73 − − 13,496.73
Consulting fees
Fixed Price 13,426.74 1,533.98 − 14,960.72
Time & Material Basis 11,160.78 3,411.09 1,116.67 15,688.54
43,527.29 4,945.07 1,116.67 49,589.03
(b) During the year ended March 31, 2020, the OFSS group recognized revenue of ₹ 4,240.69 million from opening
deferred revenue as of April 1, 2019. During the year ended March 31, 2019, the OFSS group recognized
revenue of ₹ 4,001.28 million from opening deferred revenue as of April 1, 2018.
(c) During the year ended March 31, 2020, the OFSS group has recognized revenue of ₹ 67.20 million from
performance obligations satisfied prior to April 1, 2019. During the year ended March 31, 2019, the OFSS group
recognized revenue of ₹ 732.10 million from performance obligations satisfied prior to April 1, 2018.
(d) Change in contract assets and contract liabilities are on account of transactions undertaken in the normal
course of business. In accordance with Ind AS 115, unbilled revenue of ₹ 1,698.08 million as at March 31, 2020
(March 31, 2019 - ₹ 1,368.51 million) has been classified as other current asset.
(e) Reconciliation of revenue recognized with contract price
March 31, 2020 March 31, 2019
Revenue as per contracted price 48,692.81 49,744.03
Reduction towards discounts (80.05) (155.00)
(f) Remaining Performance obligation
The OFSS group has applied the practical expedient as provided in Ind AS 115 and excluded the disclosure
relating to remaining performance obligation for
i. contracts where the original expected duration is one year or less
ii. contracts where the revenue recognized corresponds directly with the value to the customer of the entity’s
performance completed to date. Typically this involves those contracts where invoicing is on time and
material basis.
Remaining performance obligation estimates are subject to change and are affected by several factors such as
terminations, changes in the scope of contracts, periodic revalidations of estimates and other macro economic factors.
The aggregate amount of transaction price allocated to the performance obligations that are unsatisfied
(or partially unsatisfied) as at March 31, 2020, after considering the practical expedient mentioned above is
₹ 13,415.02 million (March 31, 2019 - ₹ 12,780.21 million), out of which 69% (March 31, 2019 - 67%) is
expected to be recognized as revenue within the next one year and the balance thereafter.
105
(g) Asset recognized from the costs to obtain a contract
The OFSS group recognizes incremental costs of obtaining a contract with customers as an asset and disclose
them under "Other assets" as Deferred contract costs in the Consolidated financial statements. Incremental costs
of obtaining contracts are those costs that the OFSS group incurs to obtain a contract with the customer that
would not have been incurred if the contract had not been obtained. Such deferred contract costs assets are
amortized over the benefit period.
The OFSS group has amortized deferred contract cost of ₹ 58.37 million for the year ended March 31, 2020
(March 31, 2019 - ₹ 63.12 million) and has closing balance of deferred contract cost asset of ₹ 113.34 million
as at March 31, 2020 (March 31, 2019 - ₹ 110.01 million).
(h) Effective April 1, 2018, the OFSS group had adopted Ind AS 115 “Revenue from Contracts with Customers”
retrospectively with the cumulative effect recognized at the date of initial application. The cumulative effect of
applying Ind AS 115 primarily related to capitalization of incremental cost associated with contracts and has
been adjusted to the opening balance of retained earnings resulting in an increase of ₹ 26.26 million, net of tax.
Note 26: Estimation of uncertainties relating to the global health pandemic from COVID-19
The OFSS group has considered the possible effects that may result from the pandemic relating to COVID-19 on the
carrying value of Trade receivables, Unbilled receivables, Contract assets and Goodwill, which are not significant to
the Consolidated financial statements for the year ended March 31, 2020. In assessing the recoverability of these
assets, the OFSS group has used internal and external sources of information up to the date of approval of these
Consolidated financial statements, and based on current estimates, expects the net carrying amount of these assets
will be recovered. The impact on account of COVID-19 on the OFSS group’s financial statements may differ from
that estimated as at the date of approval of these consolidated financial statements. The OFSS group will continue to
monitor any material impact due to changes in future economic conditions.
Note 27: Significant accounting judgements, estimates and assumptions

The preparation of the OFSS group’s financial statements requires management to make judgements, estimates and
assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, accompanying disclosures,
and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in
outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.
The key assumptions and estimate at the reporting date that have a significant risk of causing a material adjustment
to the carrying amounts of assets and liabilities are described below. These assumptions and estimates are based
on available parameters as on the date of preparation of financial statements. These assumptions and estimates,
however, may change due to market changes or circumstances arising that are beyond the control of the OFSS group.
i) Leases
The OFSS group has entered into commercial property leases for its offices. Further, the OFSS group has also
adopted Ind AS 116 ‘Leases’ with effect from April 1, 2019 using the modified retrospective method.
The OFSS group evaluates if an arrangement qualifies to be a lease as per the requirements of Ind AS 116.
Identification of a lease requires significant judgment. The OFSS group uses significant judgement in assessing
the lease term and the applicable discount rate. The OFSS group has lease contracts which include extension
and termination option and this requires exercise of judgement by The OFSS group in evaluating whether it is
reasonably certain whether or not to exercise the option to renew or terminate the lease. The discount rate is
generally based on the incremental borrowing rate specific to the lease period.
ii) Fair value of investment property
As per the Ind AS, the OFSS group is required to disclose the fair value of the investment property. Accordingly,
the Company has engaged an independent valuation specialist to assess the fair values of investment property
as at March 31, 2020 and March 31, 2019. The investment property was valued by reference to market-based
evidence, using comparable prices adjusted for specific market factors such as nature, location and condition
of the investment property. The key assumptions used to determine fair value of the investment property and
sensitivity analysis are provided in note 5.
iii) Employee Benefit Trust
The Company had formed a Trust with name i-flex Employee Stock Option Trust (‘The Trust’) in the year 1998. The
main object was to provide benefit to the employees through stock purchase scheme. The Trust was holding equity
shares of the Company which have been sold during the year. The Trust funds would now be utilized for the benefit
of the employees. However, as per the Trust deed, the Company may use its controlling power on certain activities
of the Trust. Accordingly, the financial of the Trust are consolidated with the financials of the OFSS group.

iv) Impairment of non-financial assets
Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount,
which is the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal
calculation is based on available data from binding sales transactions, conducted at arm’s length, for similar
assets or observable market prices less incremental costs for disposing of the asset. The value in use calculation
is based on a DCF model. The cash flows are derived from the projections for the next five years and do not
include restructuring activities that the OFSS group is not yet committed to or significant future investments
that will enhance the asset’s performance of the CGU being tested. The recoverable amount is sensitive to the
discount rate used for the DCF model as well as the expected future cash-inflows and the growth rate used
for extrapolation purposes. These estimates are most relevant to goodwill recognized by the OFSS group. The
key assumptions used to determine the recoverable amount for the different CGUs, are disclosed and further
explained in Note 32.
v) Share based payments
The Company measures share-based payments and transactions at fair value and recognizes over the vesting
period using Black Scholes valuation model. Estimating fair value for share-based payment transactions requires
determination of the most appropriate valuation model, which is dependent on the terms and conditions of the
grant. This estimate also requires determination of the most appropriate inputs to the valuation model including
the expected life of the share option, volatility and dividend yield and making assumptions about them. The
assumptions and model used for estimating fair value for share-based payment transactions are disclosed in
note 30(b).
vi) Taxes
Income tax expense comprises current tax expense and the net changes in the deferred tax asset or liability
during the year. Significant judgements are involved in determining the provision for income taxes, including
amount expected to be paid/recovered for uncertain tax positions, including disclosures thereof. Also refer Note
2.3 (f), Note 16 and Note 39.
Deferred tax liability is recognized on the undistributed profits of subsidiaries where it is expected that the
earnings of the subsidiary will be distributed in foreseeable future. Deferred tax asset is recognized for unused
tax losses to the extent that it is probable that taxable profit will be available against which the losses can be
utilized. Significant management judgement is required to determine the amount of deferred tax that can be
recognized, based upon the likely timing and the level of future taxable profits together with future tax planning
strategies.
vii) Defined benefit plans (gratuity benefits)
The cost of the defined benefit gratuity plan and other post-employment retirement benefits and the present
value of the gratuity obligation are determined using actuarial valuations. An actuarial valuation involves making
various assumptions that may differ from actual developments in the future. These include the determination of
the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation
and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All
assumptions are reviewed at each reporting date annually. The parameter most subject to change is the discount
rate. In determining the appropriate discount rate for plans operated in India, the management considers the
interest rates of government bonds in currencies consistent with the currencies of the post-employment benefit
obligation. For plans operated outside India, the management considers the interest rates of high quality corporate
bonds in currencies consistent with the currencies of the post-employment benefit obligation with at least an
‘AA’ rating or above, as set by an internationally acknowledged rating agency, and extrapolated as needed along
the yield curve to correspond with the expected term of the defined benefit obligation. The underlying bonds
are further reviewed for quality. Those having excessive credit spreads are excluded from the analysis of bonds
on which the discount rate is based, on the basis that they do not represent high quality corporate bonds.
The mortality rate is based on publicly available mortality tables for the specific countries. Those mortality tables
tend to change only at interval in response to demographic changes. Future salary increases is based on expected
future inflation rates for the respective countries. Further details about gratuity obligations are given in note 31.
viii) Fair value measurement of financial instruments
When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured
based on quoted prices in active markets, their fair value is measured using valuation techniques including the
DCF model. The inputs to these models are taken from observable markets where possible, but where this is
not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of
inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the
reported fair value of financial instruments. See note 37 for further disclosures.
107
ix) Revenue Recognition
The OFSS group assesses the products / services promised in a contract and identifies distinct performance
obligations in the contract. Identification of distinct performance obligation involves judgement to determine
the deliverables. The OFSS group exercises judgement in determining whether the performance obligation is
satisfied at a point in time or over a period of time.
In determining the transaction price for the contract, judgement is required to assess if the consideration is
fixed or is considered variable and whether there is any constraint on such variable consideration such as
volume discounts, service level credits and price concessions. The OFSS group uses judgement to determine an
appropriate standalone selling price for each performance obligation and allocates the transaction price to each
performance obligation on the basis of the relative standalone selling price of each distinct product or service
promised in the contract except for sale of software licenses, where the OFSS group uses a residual approach for
estimating the standalone selling price of software license as the pricing is highly variable.
Contract fulfilment costs are generally expensed as incurred except for certain contract costs which meet the
criteria for capitalization. Such costs are amortized over the benefit period. The assessment of this criteria
requires the application of judgement.
Note 28: Capital commitments and contingent liabilities
Particulars March 31, 2020 March 31, 2019
(a) Capital Commitments towards Property, Plant and Equipment
Contracts remaining to be executed on capital account not provided for 138.38 241.04
(net of advances)
(b) Contingent liabilities (refer note 39 for Tax litigations) 3.20 3.20
Note 29: Leases

Where OFSS group is lessee
The changes in the carrying values of right-of-use asset for the year ended March 31, 2020 are given in note 4.
Set out below are the carrying amounts of lease labilities and the movement during the year ended March 31, 2020:
Particulars
As at April 01, 2019 −
Adjustment on adoption of Ind AS 116 'Leases' 1,562.11
Modifications (4.60)
Interest on lease liability 99.85
Repayments (549.32)
Exchange impact 38.78
As at March 31, 2020 1,146.82
Current 465.32
Non-Current 681.50
Total 1,146.82
The maturity analysis of undiscounted lease liabilities as at March 31, 2020 are as follows:
Particulars
Less than 1 year 533.00
1 to 5 years 772.98
More than 5 years 1.86
Total 1,307.84

The following amounts are recognized in the statement of profit and loss for the year ended March 31, 2020:
Particulars
Depreciation expenses on right-of-use asset 486.03
Interest expense on lease liability 99.85
Expense relating to short-term leases and other service charges (included in other operating 109.99
expenses as rent)
Total 695.87
Interest income from subleasing right-of-use asset (5.97)
Total 689.90
The OFSS group had total cash outflows for leases of ₹ 449.47 million (excluding interest) for the year ended
March 31, 2020. The OFSS group does not have any non-cash additions to right-of-use assets and lease liabilities for the
year ended March 31, 2020. Further, there are no future cash outflows relating to leases that have not yet commenced.
Future income receivable from subleasing of right-of-use asset as at 31st March 2020 is as follows:
Particulars
Not later than one year 39.17
Later than one year but not later than five years 44.76
Later than five years −
Total 83.93
Unearned finance income (6.57)
Investment in sublease of right-of-use asset 77.36
The minimum rental payments to be made in future in respect of leases to which the OFSS group has chosen to apply
the practical expedient as per the standard as of March 31, 2020 is as follows:
Particulars
1 to 5 years 1.12
More than 5 years −
Total 10.43
Note 30: Share based compensation / payments

(a) Employee Stock Purchase Scheme (“ESPS”)
(“the Trust”) to provide equity based incentives to key employees of the Company. i-flex Solution Trustee Company
Ltd. is the Trustee of this Trust.
under the Trust have exercised their right of purchase of shares prior to March 31, 2014. In this regard, the Trustee
Company had filed a petition in the Honorable Bombay High Court to seek directions for utilization of the remaining
unallocated shares along with the other assets held by the Trust for the benefit of the employees of the Company.
As per the order of the Honorable Bombay High Court dated August 1, 2016, the trust funds would be utilized for
the benefit of the employees. Accordingly during the financial year the trust has incurred an expenditure of ₹ 48.59
million (March 31, 2019 - ₹ 10.89 million) towards welfare of employees of the Company.
As at March 31, 2020, the Trust is not holding any equity shares (March 31, 2019 - 27,160 equity shares) of the
Company.
(b) Employee Stock Option Plan (“ESOP”)
from time to time, by the Members at their Annual General Meeting held on August 18, 2011. This extended limit is an
all inclusive limit applicable for stock options (“options”) granted in the past and in force and those that will be granted
by the Company under this authorization.
109
Pursuant to ESOP scheme approved by the shareholders of the Company on August 14, 2001, the Board of Directors,
on March 4, 2002 approved the Employees Stock Option Scheme (“Scheme 2002”) for issue of 4,753,600 options to
the employees and directors of the Company and its subsidiaries. According to the Scheme 2002, the Company has
granted 4,548,920 options prior to the IPO and 619,000 options at various dates after IPO (including the grants of
options out of options forfeited earlier). On August 25, 2010, the Board of Directors approved the Employees Stock
Option Plan 2010 Scheme (“Scheme 2010”) for issue of 618,000 options to the employees and directors of the
Company and its subsidiaries. According to the Scheme 2010, the Company has granted 638,000 options (including
the grants of options out of options forfeited earlier). As at March 31, 2020 there are no options outstanding under
ESOP Scheme 2002.
Pursuant to ESOP scheme approved by the shareholders of the Company in their meeting held on August 18, 2011,
Company has granted 1,950,500 options under the Scheme 2011. Nomination and Remuneration Committee in
their meeting held on August 7, 2014 approved Oracle Financial Services Software Limited Stock Plan 2014 (“OFSS
Stock Plan 2014”). Accordingly the Company granted 178,245 Stock Options and 854,453 OFSS Stock Units (“OSUs”)
under OFSS Stock Plan 2014. The issuance terms of OSUs are the same as for Stock Options, employees may elect to
receive 1 OSU in lieu of 4 awarded Stock Options at their respective exercise price.
employee or directorship of the director with the Company or its subsidiaries. Options have exercise period of 10 years
from the date of grant. The employee pays the exercise price upon exercise of options.
In respect of the OFSS Stock Plan 2014, each of 25% of the total options / OSUs granted will vest on completion of
12, 24, 36 and 48 months from the date of grant and is subject to continued employment of the employee with the
Company or its subsidiaries. Options / OSUs have exercise period of 10 years from the date of grant. The employee
A summary of the activity in the Company’s ESOP (Scheme 2010) is as follows:

from options average from options average
(₹) (₹)
Outstanding at beginning of year 37,065 2,050 41,485 2,050
Granted − − − −
Exercised (3,230) 2,050 (3,120) 2,050
Forfeited − − (1,300) 2,050
Outstanding at end of the year 33,835 2,050 37,065 2,050
Vested options 33,835 37,065
Unvested options − −

(₹) (₹)
Exercised (14,082) 2,545 (241,558) 3,034
Forfeited (13,200) 3,112 (12,100) 2,949

A summary of the activity in the Company’s ESOP (OFSS Stock Plan 2014) is as follows:
from Stock average from Stock average
Options and exercise price Options and exercise price
OSUs (₹) OSUs (₹)
Outstanding at beginning of year 554,572 878 560,669 863
Granted 142,250 5 137,669 381
Exercised (82,839) 15 (117,576) 103
Forfeited (18,809) 609 (26,190) 1,412
Outstanding at end of the year 595,174 798 554,572 878
Vested options and OSUs 252,203 192,454
Unvested options and OSUs 342,971 362,118
During the year ended March 31, 2020, the Company has granted 142,250 OSUs at an exercise price of ₹ 5
(March 31, 2019 - 12,450 stock options and 125,219 OSUs at an exercise price of ₹ 4,158 and ₹ 5 respectively)
under OFSS Stock Plan 2014.
The weighted average share price for the year over which stock options / OSUs were exercised was ₹ 3,001
(March 31, 2019 - ₹ 3,960).
The details of options / OSUs unvested and options / OSUs vested and exercisable as on March 31, 2020 are as follows:
Exercise Number of Weighted Weighted average
prices (₹) Options average remaining
exercise price contractual life
(₹) (Years)
Options / OSUs unvested 5 318,339 5 8.3
3,393 12,155 3,393 6.2
3,579 4,300 3,579 7.2
4,158 8,177 4,158 8.2
Options / OSUs vested and exercisable 5 143,147 5 6.3

1,930 50,889 1,930 1.7
2,050 33,835 2,050 0.4
3,077 167,983 3,077 3.5
3,127 136,070 3,127 2.8
3,241 41,033 3,241 5.0
3,393 35,045 3,393 6.2
3,579 4,205 3,579 7.2
3,987 26,050 3,987 5.6
4,158 2,723 4,158 8.2
983,951 1,611 5.5
111

(₹) (Years)
3,393 25,100 3,393 7.2
3,579 6,450 3,579 8.2
3,987 6,792 3,987 6.6
4,158 10,900 4,158 9.2

1,930 57,541 1,930 2.7
2,050 37,065 2,050 1.4
3,077 176,683 3,077 4.5
3,127 148,000 3,127 3.8
3,241 41,578 3,241 6.0
3,393 23,712 3,393 7.2
3,579 2,155 3,579 8.2
3,987 20,408 3,987 6.6
973,861 1,726 5.9
Stock Options / OSUs granted during the financial year ended March 31, 2020:
The weighted average fair value of stock options / OSUs granted during the year was ₹ 3,168 (March 31, 2019 -
₹ 3,868).
The Black Scholes valuation model has been used for computing the above weighted average fair value of Stock
Options / OSUs granted considering the following inputs:
Year Ended March 31, 2020

OFSS Stock Plan 2014 (OSU)
May, 2019 June, 2019 Sept, 2019 Sept, 2019 Oct, 2019
Weighted average share price (in ₹) 3,389 3,178 3,077 2,874 3,106
Exercise Price (in ₹) 5/- 5/- 5/- 5/- 5/-
Expected Volatility 23% 22% 23% 23% 24%
Weighted average life (in years) 2.61 2.61 2.61 2.60 2.60
Expected dividend rate Nil Nil Nil Nil Nil
Average risk-free interest rate 6.79% 6.38% 5.76% 5.78% 5.61%

OFSS Stock Plan OFSS Stock Plan
2014 (Stock Option) 2014 (OSU)
June, 2018 June, 2018
Weighted average share price (in ₹) 991 4,154
Exercise Price (in ₹) 4,158 5
Expected Volatility 22% 22%
Weighted average life (in years) 2.93 2.60
Expected dividend rate Nil Nil
Average risk-free interest rate 7.61% 7.48%
The expected volatility was determined based on historical volatility data; historical volatility includes early years of the
Company’s life; the Company expects the volatility of its share price to reduce as it matures.

Note 31: Defined benefits obligations
Defined contribution plans
During the year ended March 31, 2020 and March 31, 2019, the OFSS group contributed following amounts to
defined contributions plans:
March 31, 2020 March 31, 2019
Provident fund 390.78 349.32
Superannuation fund 114.15 114.65
504.93 463.97
Defined benefit plan – gratuity
The amounts recognized in the statement of profit and loss are as follows:
March 31, 2020 March 31, 2019
Current service cost 139.86 136.08
Interest cost, net 78.06 72.90
Total included in employee benefit expenses 217.92 208.98
Remeasurements recognized in other comprehensive income (OCI) are as follows:

March 31, 2020 March 31, 2019
Due to change in demographic assumptions 5.99 (4.06)
Due to change in financial assumptions 108.81 (6.95)
Due to change in experience adjustments (18.44) (37.82)
Return on plan assets (excl. Interest income) 0.08 2.32
Total re-measurements in OCI 96.44 (46.51)
The amounts recognized in the balance sheet are as follows:

Particulars As at As at
March 31, 2020 March 31, 2019
Present value of partially funded obligations 1,059.04 938.13
Present value of unfunded obligations 284.63 194.06
Fair value of plan assets (2.98) (1.38)
Net liability 1,340.69 1,130.81
113
Changes in present value of defined benefit obligation representing reconciliation of opening and closing balances
thereof are as follows:
March 31, 2020 March 31, 2019
Defined benefit obligation at beginning of the year 1,132.19 1,051.75
Interest cost 78.10 73.23
Effect of exchange rate changes 17.73 −
Benefits paid (120.57) (80.04)
Re-measurement
Due to change in demographic assumptions 5.99 (4.06)
Due to change in financials assumptions 108.81 (6.95)
Defined benefit obligation at end of the year 1,343.67 1,132.19
Changes in the fair value of plan assets representing reconciliation of opening and closing balances thereof are as
follows:
March 31, 2020 March 31, 2019
Fair value of plan assets at beginning of the year 1.38 5.16
Interest income 0.04 0.33
(Return) on plan assets (excl. Interest income) (0.08) (2.32)
Contributions by employer 104.50 66.67
Fair value of plan assets at end of the year 2.98 1.38
Plan assets are administered by LIC of India.
The assumptions used in accounting for the gratuity plan are set out as below:
March 31, 2020 March 31, 2019
Discount rate 3.05% - 7.80% 3.90% - 7.80%
Expected returns on plan assets 6.70% 7.80%
Salary escalation rate 2.00% - 8.00% 2.00% - 8.00%
Weighted average duration 8 years - 14 years 8 years - 15 years
The estimates of future salary increase, considered in actuarial valuation, take account of inflation, seniority, promotions
and other relevant factors such as supply and demand in the employment market.
The OFSS group evaluates these assumptions annually based on its long-term plans of growth and industry
standards. The discount rates are based on current market yields on government bonds consistent with the currency
and estimated term of the post employment benefits obligations. Plan assets are administered by LIC. The expected
rate of return on plan assets is based on the expected average long term rate of return on investments of the fund
during the terms of the obligation.
The OFSS group’s contribution to the fund for the year ending March 31, 2021 is expected to be ₹ 122.92 million
(March 31, 2020 - ₹ 113.25 million).

A quantitative sensitivity analysis for significant assumptions on defined benefit obligation as at March 31, 2020 is as
shown below:
Particulars Sensitivity Year ended Year ended
level March 31, 2020 March 31, 2019
Financial assumptions
Discount rate - 0.5% 1,400.01 1,177.49
+ 0.5% 1,291.17 1,089.89
Salary escalation rate - 0.5% 1,297.49 1,092.68
+ 0.5% 1,392.19 1,173.53
Demographic assumptions
Withdrawal rate - 1% 1,347.59 1,128.36
+ 1% 1,340.04 1,135.46
Note 32: Impairment testing of goodwill

Goodwill acquired through business combinations with indefinite lives has been allocated to the two cash generating
units (CGUs) below, which are also operating and reportable segments, for impairment testing:
1. Product licenses and related activities ('Products')
2. Business Process Outsourcing services (‘BPO Services’)
Carrying amount of goodwill allocated to each of the CGUs:

Products 5,861.99 5,861.99
BPO Services 224.64 224.64
Total carrying value of goodwill 6,086.63 6,086.63
The OFSS group performed its annual impairment test for years ended March 31, 2020 and March 31, 2019 on
respective balance sheet date. The recoverable amount of above CGUs exceeded their carrying amounts.
Products CGU
The recoverable amount of the Products CGU as at March 31, 2020 is determined based on a value in use calculation
using projections covering a five-year period. The growth rate used to extrapolate the cash flows of the unit beyond
the five-year period is 1% (March 31, 2019 - 1%). This growth rate is in line with the industry average growth rate. The
pre-tax discount rate applied to the cash flow projections for impairment testing during the current year is 20.26%
(March 31, 2019 - 25.31%). The management did not identify impairment for this CGU.
Key assumptions used for value in use calculations
The calculation of value in use for Products CGU is most sensitive to the following assumptions:
- Operating margins
- Discount rates
- Growth rates used to extrapolate cash flows beyond the forecast period
Operating margins - Operating margins are based on average values achieved in the current financial year.
Discount rates - Discount rates represent the current market assessment of the risks specific to each CGU, taking into
consideration the time value of money and individual risks of the underlying assets that have not been incorporated
in the cash flow estimates. The discount rate calculation is based on the specific circumstances of the Group and
its operating segments and is derived from its weighted average cost of capital (WACC). Segment-specific risk is
incorporated by applying individual beta factors. The beta factors are evaluated annually based on publicly available
market data. Adjustments to the discount rate are made to factor in the specific amount and timing of the future tax
flows in order to reflect a pre-tax discount rate.
Growth rate estimates - Rates are in line with the industry average growth rate.
115
Note 33: Financial risk management objectives and policies
The OFSS group activities expose it to market risks, liquidity risk and credit risks. The management oversees these
risks and is aided by the Risk Management Committee whose scope is to formulate the risk management policy, which
will identify elements of risk, if any which may affect the OFSS group.
(a) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes
in market prices. Market risk mainly comprises of foreign currency risk.
Foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of monetary items will fluctuate because of
changes in foreign exchange rates. This may have potential impact on the statement of profit and loss and other
components of equity, where monetary items are denominated in a foreign currency which are different from
functional currency in which they are measured. As of balance sheet date, the OFSS group’s net foreign currency
exposure expressed in INR that is not hedged is ₹ 4,038.53 million (March 31, 2019 - ₹ 4,902.80 million).
Following are the carrying amounts of foreign currency denominated monetary items (net) of OFSS group where it
has significant exposure as at the balance sheet date:
Currency March 31, 2020 March 31, 2019
USD 4,802.77 2,261.08
CNY 65.75 1,071.42
GBP (627.72) 1,050.25
EUR (122.76) (166.63)
AUD 104.74 340.65
The OFSS group manages its foreign currency risk by hedging the receivables in the major currencies (USD, EUR,
AUD, GBP and JPY) using hedging instrument as forward contracts. The period of the forward contracts is determined
by the expected collection period for invoices which currently ranges between 30 to 120 days.
Foreign currency sensitivity
The table below demonstrates sensitivity impact on OFSS group’s profit after tax and total equity due to change in
foreign exchange rates of currencies where it has significant exposure:
+1% -1% +1% -1%
USD 49.43 (49.43) 28.21 (28.21)
CNY 0.33 (0.33) 7.05 (7.05)
GBP 5.51 (5.51) 12.52 (12.52)
EUR (13.56) 13.56 (16.26) 16.26
AUD 2.83 (2.83) 2.90 (2.90)
The above sensitivity impact gain (loss) is due to every percentage point appreciation or depreciation in the exchange
rate of respective currencies, with all other variables held constant. Sensitivity impact is computed based on change
in value of monetary assets and liabilities denominated in above respective currency, where the functional currency of
the entity is a currency other than above respective currency and entities with functional currency as above respective
currency where transactions are in foreign currencies. The OFSS group’s exposure to foreign currency changes for all
other currencies is not material.
(b) Liquidity risk

Liquidity risk management implies maintaining sufficient availability of funds to meet obligations when due and to
close out market positions. The OFSS group monitors rolling forecast of the cash and cash equivalent on the basis of
expected cash flows.

The table below summarizes the maturity profile of the OFSS group’s financial liabilities:
Particulars Less than 1 year More than 1 year Total
As at March 31, 2020
Lease liability 465.32 681.50 1,146.82
Trade payable 354.92 − 354.92
Accrued compensation to employees 805.75 45.55 851.30
Accrued Expenses 1,130.40 − 1,130.40
Capital creditors 35.82 − 35.82
Advance from customers 80.34 − 80.34
Unpaid dividends 80.55 − 80.55
Foreign exchange forward contract, net 62.44 − 62.44
3,015.54 727.05 3,742.59
Trade payable 567.65 − 567.65
Accrued compensation to employees 1,102.85 32.38 1,135.23
Accrued Expenses 1,286.29 − 1,286.29
Advance from customers 73.00 − 73.00
Foreign exchange forward contract, net − − −
3,291.12 32.38 3,323.50
The OFSS group has sufficient funds in cash and cash equivalent and other bank balances to meet obligations towards
financial liabilities.
(c) Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract,
leading to a financial loss. The OFSS group is exposed to credit risk from its operating activities (primarily trade
receivables) and from its finance activities, including time deposits with banks, foreign exchange transactions and
other financial instruments.
Trade receivables
Customer credit risk is managed in line with the established policy, procedures and control relating to customer credit
risk management. Credit quality of a customer is assessed based on an extensive credit rating scorecard and individual
credit limits are defined in accordance with this assessment.
An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, a
large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively.
The calculation is based on regional historical data. The maximum exposure to credit risk at the reporting date is the
carrying value of each class of financial assets disclosed in note 8.
Cash and Bank balances
Credit risk from balances with banks is managed by the OFSS group’s treasury department in accordance with the
OFSS group’s policy. Investments of surplus funds are made only with existing Bankers and within credit limits assigned
to each banker.
OFSS group follows a conservative philosophy and aims to invest surplus funds mainly in India and only in time
deposits with well-known and highly rated banks. The duration of such time deposits will not exceed 364 days. The
OFSS group, on quarterly basis, monitors the credit ratings and total deposit balances of each of its bankers. Further
limits are set to minimize the concentration of risks and therefore mitigate financial loss of any potential failure to repay
deposits.
117
Note 34: Capital management
For the purpose of the OFSS group’s capital management, capital includes issued equity share capital, share premium
and all other equity reserves attributable to the equity shareholders of the Company. The primary objective of the
OFSS group’s capital management is to maximize the equity shareholder value.
The OFSS group manages its capital structure and makes adjustments in light of changes in economic conditions and
other financial requirements.
Note 35: Derivative instruments

The Company enters into forward foreign exchange contracts where the counter party is a bank. The Company
purchases forward foreign exchange contracts to mitigate the risks of change in foreign exchange rate on receivables
denominated in certain foreign currencies. The Company considers the risk of non-performance by the counter party
as non-material:
As at March 31, 2020 the Company has following outstanding derivative instrument:
(Amounts in million)
Forward contracts - Sell in US Dollar USD 37.76 USD 37.76
Forward contracts - Sell in AU Dollar AUD 6.30 AUD 3.87
Forward contracts - Sell in Euro EUR 5.80 EUR 1.75
Forward contracts - Sell in JPY JPY 339.00 JPY 287.00
Forward contracts - Sell in GBP GBP 0.70 −

Note 36: Summary of Net Assets and Share in Profit or loss of the Group
March 31, 2020 (Amounts in ₹ million)

Name of the Entity Net Assets % Share in Profit % Share in other % Share in total %
or (loss) comprehensive comprehensive
income income
Parent
Oracle Financial Services Software Limited 55,083.01 84% 15,826.56 108% (33.54) (3%) 15,793.02 101%
Subsidiaries
Indian
Oracle (OFSS) Processing Services Limited 379.14 1% 88.76 1% (0.40) 0% 88.36 1%
Oracle (OFSS) BPO Services Limited 5.59 0% (104.32) (1%) (3.55) 0% (107.87) (1%)
Oracle (OFSS) ASP Private Limited 41.14 0% 0.44 0% − 0% 0.44 0%
Mantas India Private Limited 21.22 0% 0.93 0% − 0% 0.93 0%
Foreign
Oracle Financial Services Software B.V. 3,253.21 5% 559.80 4% 338.43 33% 898.23 6%
Oracle Financial Services Software SA 82.05 0% (107.53) (1%) 10.30 1% (97.23) (1%)
Oracle Financial Services Software Pte. Ltd. 610.28 1% (484.60) (3%) 82.22 8% (402.38) (3%)
Oracle Financial Services Consulting Pte. Ltd. (258.49) 0% (0.21) 0% 0.26 0% 0.05 0%
Oracle Financial Services Software America, Inc. 10,410.59 16% (0.08) 0% 881.99 85% 881.91 6%
Oracle Financial Services Software, Inc. 8,632.41 13% 748.21 5% 746.01 72% 1,494.22 10%
Mantas Inc. 215.91 0% 0.11 0% 18.28 2% 18.39 0%
Sotas Inc. 20.85 0% (3.03) 0% 1.80 0% (1.23) 0%
ISP Internet Mauritius Company 276.53 0% 17.07 0% − 0% 17.07 0%
Oracle (OFSS) BPO Services Inc. (735.61) (1%) (6.94) 0% (61.71) (6%) (68.65) 0%
Oracle Financial Services Software Chile Limitada 439.22 1% 64.63 0% (62.88) (6%) 1.75 0%
Oracle Financial Services Software (Shanghai) Limited 146.06 0% (10.01) 0% 4.86 0% (5.15) 0%
Controlled trust
Indian
i-flex Employee Stock Option Trust 1,023.56 2% 71.99 1% − 0% 71.99 0%
Adjustments arising out of consolidation (13,950.87) (22%) (2,039.61) (14%) (886.18) (86%) (2,925.79) (19%)
Total 65,695.80 100% 14,622.17 100% 1,035.89 100% 15,658.06 100%
119
March 31, 2019 (Amounts in ₹ million)
Name of the Entity Net Assets % Share in Profit % Share in other % Share in total %
or (loss) comprehensive comprehensive
income income
Parent
Oracle Financial Services Software Limited 38,803.74 79% 12,824.70 93% 25.83 11% 12,850.53 91%
Subsidiaries
Indian
Oracle (OFSS) Processing Services Limited 290.78 1% 73.66 1% 0.28 0% 73.94 1%
Oracle (OFSS) BPO Services Limited 108.23 0% (116.91) (1%) 6.22 3% (110.69) (1%)

Oracle (OFSS) ASP Private Limited 40.70 0% 0.92 0% − 0% 0.92 0%
Mantas India Private Limited 20.29 0% 0.73 0% − 0% 0.73 0%
Foreign
Oracle Financial Services Software B.V. 2,341.21 5% 567.10 4% 2.02 1% 569.12 4%
Oracle Financial Services Software SA 177.06 0% (43.15) 0% (10.17) (4%) (53.32) 0%
Oracle Financial Services Software Pte. Ltd. 959.70 2% (722.43) (5%) 40.42 18% (682.01) (5%)
Oracle Financial Services Consulting Pte. Ltd. (258.54) (1%) (1.82) 0% (17.76) (8%) (19.58) 0%
Oracle Financial Services Software America, Inc. 9,528.68 19% (0.09) 0% 571.23 252% 571.14 4%
Oracle Financial Services Software, Inc. 7,102.69 14% 392.18 3% 376.12 166% 768.30 5%
Mantas Inc. 197.52 0% 0.27 0% 11.83 5% 12.10 0%
Sotas Inc. 22.08 0% (0.36) 0% 1.36 1% 1.00 0%
ISP Internet Mauritius Company 259.46 1% 13.01 0% − 0% 13.01 0%
Oracle (OFSS) BPO Services Inc. (667.02) (1%) (1.23) 0% (39.07) (17%) (40.30) 0%
Oracle Financial Services Software Chile Limitada 435.42 1% 55.66 0% (29.27) (13%) 26.39 0%
Oracle Financial Services Software (Shanghai) Limited 151.00 0% 0.37 0% (1.01) 0% (0.64) 0%
Controlled trust
Indian
i-flex Employee Stock Option Trust 951.57 2% 194.32 1% − 0% 194.32 1%
Adjustments arising out of consolidation (11,099.18) (22%) 622.05 4% (711.54) (314%) (89.49) (1%)
Total 49,365.39 100% 13,858.98 100% 226.49 100% 14,085.47 100%
Note 37: Fair values
The management has assessed that fair value of financial instruments approximates their carrying amounts largely
due to the short term maturities of these instruments.
Fair value hierarchy:

The following table provides the fair value measurement hierarchy of the OFSS group’s assets and liabilities.
Fair value measurement hierarchy for assets and liabilities as at March 31, 2020:
Fair value measurement using
Date of Total Quoted prices Significant Significant
valuation in active observable unobservable
markets inputs inputs
(Level 1) (Level 2) (Level 3)
Assets for which fair values are disclosed:
Investment property [Refer note 5] March 31, 2020 204.30 − 204.30 −
Liabilities measured at fair value:
Foreign exchange forward contract, net March 31, 2020 62.44 − 62.44 −
[Refer note 13]
markets inputs inputs
(Level 1) (Level 2) (Level 3)
Investment property [Refer note 5] March 31, 2019 245.00 − 245.00 −
Foreign exchange forward contract, net March 31, 2019 20.37 − 20.37 −
[Refer note 13]
The following methods and assumptions are used to estimate the fair values:
The OFSS group enters into derivative financial instruments with various banks. Foreign exchange forward contracts
are valued using valuation techniques, which employs the use of market observable inputs. The most frequently
applied valuation techniques include forward pricing using present value calculations. The models incorporate various
inputs including the credit quality of counterparties, foreign exchange spot and forward rates, yield curves of the
respective currencies, currency basis spreads between the respective currencies.
There have been no transfers between Level 1 and Level 2 during the periods March 31, 2020 and March 31, 2019.
121
Note 38: Names of Related Parties and description of relationship
Relationship Names of related parties

(i) Related parties where control exists
Ultimate Holding Company Oracle Corporation
Holding Company Oracle Global (Mauritius) Limited
(ii) Related parties with whom transactions have taken place during the year
Fellow Subsidiaries Oracle America, Inc.
Oracle Austria GmbH
Oracle Belgium B.V.B.A/SPRL.
Oracle Bilgisayar Sistemleri Limited Sirketi
Oracle Canada ULC
Oracle Caribbean, Inc.
Oracle (China) Software Systems Company Limited
Oracle Colombia Limitada
Oracle Consulting Kazakhstan LLP
Oracle Corporation (Thailand) Company Limited
Oracle Corporation Australia Pty. Limited
Oracle Corporation Japan
Oracle Corporation Malaysia Sdn. Bhd.
Oracle Corporation Singapore Pte. Ltd.
Oracle Corporation (South Africa)(Pty) Limited
Oracle Corporation UK Limited
Oracle Czech s.r.o.
Oracle Danmark ApS
Oracle de Centroamerica, S.A.
Oracle de Mexico, S.A. de C.V.
Oracle Deutschland B.V & Co. KG
Oracle de Venezuela, C.A.
Oracle Do Brasil Sistemas Limitada
Oracle East Central Europe Limited
Oracle East Central Europe Services B.V.
Oracle Egypt Limited
Oracle EMEA Limited
Oracle France, S.A.S.
Oracle Hardware ZAO
Oracle Hrvatska d.o.o.
Oracle Hellas, S.A.
Oracle Iberica, S.R.L.
Oracle Hungary Kft.
Oracle Italia S.r.l.
Oracle India Private Limited
Oracle Korea, Ltd.
Oracle Luxembourg S.a.r.l.
Oracle Nederland B.V.
Oracle New Zealand
Oracle Norge AS
Oracle (Philippines) Corporation

Oracle Polska, Sp.z.o.o.
Oracle Portugal - Sistemas de Informacao Lda.
Oracle Research & Development Center, Shenzhen, Ltd.
Oracle Research and Development Centre, Beijing, Ltd.
Oracle Romania SRL
Oracle Serbia and Montenegro d.o.o
Oracle Slovensko spol. s r.o.
Oracle Software (Schweiz) GmbH
Oracle Solution Services (India) Private Ltd.
Oracle Svenska AB
Oracle SRBIJA CRNA GORA d.o.o.
Oracle Systems Hong Kong Limited
Oracle Systems Limited
Oracle Systems Pakistan (Private) Limited
Oracle Taiwan LLC
Oracle Technology Systems (Kenya) Limited
Oracle Vietnam Pte. Ltd.
PT Oracle Indonesia
Sistemas Oracle de Chile, S.A.
Sistemas Oracle del Peru, S.A.
(iii) Key Managerial Personnel ('KMP') Chaitanya Kamat - Managing Director and Chief Executive Officer
Makarand Padalkar - Whole-time Director and Chief Financial Officer
(Whole-time Director from May 9, 2019)
Onkarnath Banerjee - Company Secretary & Compliance Officer
(iv) Independent Directors S Venkatachalam

Sridhar Srinivasan
Richard Jackson
Jane Murphy (from February 13, 2019)
123
Transactions and balances outstanding with these parties are described below:
Particulars Transaction Amount receivable (payable)
Year ended Year ended As at As at
March 31, March 31, March 31, March 31,
2020 2019 2020 2019
Revenue
Fellow subsidiaries
Oracle America, Inc. 3,297.36 3,871.40 586.45 1,004.65
Oracle Austria GmbH 23.73 19.41 5.39 4.37
Oracle Belgium B.V.B.A/SPRL. 18.26 58.39 7.11 8.84
Oracle Bilgisayar Sistemleri Limited Sirketi 4.23 4.97 − −
Oracle Canada ULC 951.65 982.39 143.83 165.40
Oracle Caribbean, Inc. 212.04 164.30 34.53 16.93
Oracle (China) Software Systems Company 36.59 30.63 2.40 3.32
Limited
Oracle Colombia Limitada 174.43 225.69 31.76 1.92
Oracle Consulting Kazakhstan LLP 1.30 1.32 − −
Oracle Corporation Japan 2,606.99 2,451.16 588.00 681.23
Oracle Corporation (South Africa)(Pty) 539.98 700.91 62.99 16.24
Limited
Oracle Corporation (Thailand) Company 674.76 622.80 221.73 114.56
Limited
Oracle Corporation Australia Pty. Limited 3,152.39 3,487.60 490.00 516.66
Oracle Corporation Malaysia Sdn. Bhd. 291.21 347.85 57.53 57.33
Oracle Corporation Singapore Pte. Ltd. 619.31 479.37 146.24 159.89
Oracle Corporation UK Limited 493.39 547.57 113.16 102.89
Oracle Czech s.r.o. 187.69 59.15 10.99 8.42
Oracle Danmark ApS 60.31 13.47 10.59 2.17
Oracle de Centroamerica, S.A. 94.62 35.81 7.51 2.82
Oracle de Mexico, S.A. de C.V. 41.18 40.74 7.12 5.27
Oracle Deutschland B.V & Co. KG 18.79 44.17 3.93 3.66
Oracle de Venezuela, C.A. 0.01 − − −
Oracle Do Brasil Sistemas Limitada 86.98 97.59 76.02 142.46
Oracle East Central Europe Limited 389.80 379.46 29.98 26.22
Oracle East Central Europe Services B.V. 20.10 37.28 10.58 20.18
Oracle Egypt Limited 482.62 1,290.75 96.53 322.08
Oracle France, S.A.S. 155.81 232.96 6.04 192.08
Oracle Hardware ZAO 12.66 223.23 39.85 93.55
Oracle Hellas, S.A. 154.35 215.81 45.24 35.23
Oracle Hrvatska d.o.o. 0.74 0.57 0.27 0.10
Oracle Hungary Kft. 297.06 259.90 28.74 31.90
Oracle Iberica, S.R.L. 135.03 136.71 12.96 17.36
Oracle India Private Limited 446.98 497.61 59.43 206.77
Oracle Italia S.r.l. 470.68 280.87 81.66 49.15
Oracle Korea, Ltd. 25.93 35.41 7.03 1.30
Oracle Luxembourg S.a.r.l. 20.96 3.09 3.71 −
Oracle Nederland B.V. 408.25 268.23 69.36 87.44
Oracle New Zealand 154.06 318.10 31.31 20.85
Oracle Norge AS 70.50 8.31 11.51 5.43
Oracle (Philippines) Corporation 116.16 211.45 13.99 (12.38)
Oracle Polska, Sp.z.o.o. 6.33 32.54 − −

2020 2019 2020 2019
Oracle Portugal - Sistemas de Informacao 109.32 132.95 0.49 54.84
Lda.
Oracle Slovensko spol. s r.o. 158.95 46.78 81.38 7.23
Oracle Serbia and Montenegro d.o.o 58.46 59.23 168.54 235.59
Oracle SRBIJA CRNA GORA d.o.o. 376.94 361.40 − −
Oracle Systems Hong Kong Limited 444.31 432.65 57.10 56.71
Oracle Systems Limited 1,605.18 1,805.41 434.23 233.18
Oracle Systems Pakistan (Private) Limited 251.77 262.35 288.39 350.57
Oracle Taiwan LLC 466.28 397.91 46.56 105.47
Oracle Technology Systems (Kenya) 87.66 101.21 25.56 6.89
Limited
Oracle Vietnam Pte. Ltd. 128.31 260.72 36.21 29.63
PT Oracle Indonesia 190.20 183.69 35.07 22.03
Oracle Romania SRL 401.57 238.42 265.04 24.63
Sistemas Oracle de Chile, S.A. 63.10 74.02 7.21 20.48
Sistemas Oracle del Peru, S.A. 44.93 66.58 3.44 2.94
Fellow subsidiaries
Oracle America, Inc. 1.89 0.26 (3.01) (1.12)
Oracle (China) Software Systems Company − (3.59) − −
Limited
Oracle (Philippines) Corporation (0.55) (3.25) (0.07) (0.62)
Oracle Austria GmbH 0.21 0.32 (0.53) (0.32)
Oracle Belgium B.V.B.A/SPRL. (0.01) 0.01 − (0.01)
Oracle Bilgisayar Sistemleri Limited Sirketi − (0.26) − −
Oracle Canada ULC (0.15) (1.26) (0.06) (0.21)
Oracle Caribbean, Inc. (0.01) (2.57) (0.02) (0.03)
Oracle Colombia Limitada 0.01 (0.92) (0.01) −
Oracle Consulting Kazakhstan LLP − (0.05) − −
Oracle Corporation (South Africa)(Pty) (1.07) (7.22) (5.99) (7.06)
Limited
Oracle Corporation (Thailand) Company 0.06 (1.74) (0.13) (0.07)
Limited
Oracle Corporation Australia Pty. Limited 0.75 (1.09) (1.10) (0.35)
Oracle Corporation Japan (0.53) (9.05) (1.02) (1.55)
Oracle Corporation Malaysia Sdn. Bhd. 0.11 (0.94) (0.11) −
Oracle Corporation Singapore Pte. Ltd. 0.07 (1.58) (0.18) (0.11)
Oracle Corporation UK Limited 1.16 (0.07) (1.32) (0.16)
Oracle Czech s.r.o. (0.02) (0.50) − (0.02)
Oracle Danmark ApS − (0.01) − −
Oracle de Centroamerica, S.A. − (0.02) − −
Oracle de Mexico, S.A. de C.V. − (1.38) − −
Oracle Do Brasil Sistemas Limitada (7.29) 17.71 (10.86) (18.15)
Oracle East Central Europe Limited − (2.96) (0.01) (0.01)
Oracle East Central Europe Services B.V. 0.03 0.07 (0.04) (0.01)
Oracle Egypt Limited (50.76) (620.64) (5.66) (56.42)
125
2020 2019 2020 2019
Oracle France, S.A.S. (0.10) 0.10 − (0.10)
Oracle Hardware ZAO 12.28 1.67 (13.95) (1.67)
Oracle Hellas, S.A. 1.00 − (1.10) (0.10)
Oracle Hungary Kft. (0.04) (0.16) (0.01) (0.05)
Oracle Iberica, S.R.L. (0.02) 0.02 − (0.02)
Oracle India Private Limited (0.55) 2.70 (0.65) (1.20)
Oracle Italia S.r.l. (0.05) 0.08 (0.02) (0.07)
Oracle Korea, Ltd. 0.01 (0.55) (0.01) −
Oracle Nederland B.V. 9.63 − (10.50) (0.87)
Oracle New Zealand − (0.12) (0.03) (0.03)
Oracle Polska, Sp.z.o.o. − (0.09) − −
Oracle Portugal − Sistemas de Informacao (0.30) 0.12 − (0.30)
Lda.
Oracle Romania SRL − (0.22) (0.03) (0.03)
Oracle Serbia and Montenegro d.o.o (2.17) 3.22 (1.13) (3.30)
Oracle Slovensko spol. s r.o. 0.02 0.01 (0.03) (0.01)
Oracle Software (Schweiz) GmbH − (0.01) − −
Oracle Systems Hong Kong Limited (0.03) (0.26) (0.06) (0.09)
Oracle Systems Limited 2.94 (4.15) (2.94) −
Oracle Systems Pakistan (Private) Limited 25.10 25.55 (52.57) (27.47)
Oracle Taiwan LLC (0.20) (2.07) (0.11) (0.31)
Oracle Technology Systems (Kenya) Limited 0.40 (4.43) (1.53) (1.13)
Oracle Vietnam Pte. Ltd. − (1.32) (0.02) (0.02)
PT Oracle Indonesia 0.02 0.03 (0.05) (0.03)
Sistemas Oracle de Chile, S.A. (0.01) (0.35) − (0.01)
Sistemas Oracle del Peru, S.A. − (0.05) − −
Bad debts
Fellow subsidiaries
Oracle America, Inc. − 1.20 − −
Oracle (Philippines) Corporation − 1.13 − −
Oracle (China) Software Systems Company − 1.29 − −
Limited
Oracle Caribbean, Inc. − 0.03 − −
Oracle Canada ULC − 0.05 − −
Oracle Consulting Kazakhstan LLP − 0.06 − −
Oracle Corporation (South Africa)(Pty) − 0.88 − −
Limited
Oracle Corporation Australia Pty. Limited − (3.43) − −
Oracle Corporation Malaysia Sdn. Bhd. − 0.94 − −
Oracle Corporation UK Limited − 6.53 − −
Oracle Czech s.r.o. − 2.02 − −
Oracle Danmark ApS − 0.14 − −
Oracle de Mexico, S.A. de C.V. − 4.75 − −
Oracle de Venezuela, C.A. − 0.02 − −

2020 2019 2020 2019
Oracle Do Brasil Sistemas Limitada − 1.26 − −
Oracle Egypt Limited − 715.96 − −
Oracle East Central Europe Limited − 1.03 − −
Oracle East Central Europe Services B.V. − 2.27 − −
Oracle India Private Limited − (1.10) − −
Oracle Korea, Ltd. − 1.37 − −
Oracle Romania SRL − 0.06 − −
Oracle Polska, Sp.z.o.o. − 0.64 − −
Oracle Portugal - Sistemas de Informacao − 2.11 − −
Lda.
Oracle Systems Pakistan (Private) Limited − 1.58 − −
Oracle Systems Limited − (7.22) − −
Oracle Taiwan LLC − 1.18 − −
Oracle Technology Systems (Kenya) Limited − (2.64) − −
Sistemas Oracle de Chile, S.A. − 3.36 − −
Sistemas Oracle del Peru, S.A. − 0.16 − −
Advance received from Customers

Fellow subsidiaries
Oracle America, Inc. 6.20 (394.84) (6.20) −
Oracle Belgium B.V.B.A/SPRL. 0.06 (0.03) (0.89) (0.83)
Oracle Colombia Limitada − (13.04) − −
Oracle Corporation Malaysia Sdn. Bhd. 0.10 0.07 (2.66) (2.56)
Oracle Corporation (South Africa)(Pty) Limited − (137.87) − −
Oracle de Venezuela, C.A. − (0.01) − −
Oracle East Central Europe Limited 0.40 (15.11) (5.81) (5.41)
Oracle (Philippines) Corporation − (0.03) − −
Oracle Hellas, S.A. − (2.10) − −
Oracle Hungary Kft. 0.01 (0.01) (0.16) (0.15)
Oracle Italia S.r.l. − (0.09) − −
Oracle Polska, Sp.z.o.o. − (9.44) − −
Oracle Portugal - Sistemas de Informacao − (0.05) − −
Lda.
Oracle Software (Schweiz) GmbH 0.01 0.01 (0.02) (0.01)
Oracle Systems Limited 2.91 (91.99) (34.31) (31.40)
Oracle Taiwan LLC − (2.97) − −
Deferred Revenue
Fellow subsidiaries
Oracle America, Inc. − − − (12.17)
Oracle Belgium B.V.B.A/SPRL. − − (9.70) −
Oracle Bilgisayar Sistemleri Limited Sirketi − − (3.06) (0.31)
Oracle Canada ULC − − − (5.73)
127
2020 2019 2020 2019
Oracle Caribbean, Inc. − − − (4.78)
Oracle Consulting Kazakhstan LLP − − − (0.10)
Oracle Corporation (Thailand) Company − − − (19.60)
Limited
Oracle Corporation Australia Pty. Limited − − − (0.21)
Oracle Corporation Malaysia Sdn. Bhd. − − − (1.40)
Oracle Corporation Singapore Pte. Ltd. − − − (1.35)
Oracle Corporation UK Limited − − − (0.14)
Oracle Czech s.r.o. − − (7.39) (0.04)
Oracle Danmark ApS − − (0.74) (0.73)
Oracle East Central Europe Limited − − (6.21) −
Oracle East Central Europe Services B.V. − − − (0.20)
Oracle de Mexico, S.A. de C.V. − − − (0.59)
Oracle Egypt Limited − − − (20.19)
Oracle France, S.A.S. − − (0.47) −
Oracle Hrvatska d.o.o. − − − (0.12)
Oracle Hungary Kft. − − − (17.08)
Oracle Iberica, S.R.L. − − − (0.04)
Oracle India Private Limited − − − (0.41)
Oracle Italia S.r.l. − − − (1.76)
Oracle Korea, Ltd. − − − (0.55)
Oracle Luxembourg S.a.r.l. − − (0.74) −
Oracle Nederland B.V. − − (0.65) −
Oracle New Zealand − − − (0.10)
Oracle Polska, Sp.z.o.o. − − (3.02) (6.19)
Oracle Portugal - Sistemas de Informacao − − (4.23) (2.03)
Lda.
Oracle Systems Hong Kong Limited − − − (1.23)
Oracle Systems Limited − − (24.07) (3.21)
Oracle Taiwan LLC − − − (1.16)
Oracle Vietnam Pte. Ltd. − − (1.87) (0.03)
Oracle Romania SRL − − (5.82) (0.40)
Sistemas Oracle de Chile, S.A. − − − (0.31)
Sistemas Oracle del Peru, S.A. − − (0.20) −
Unbilled revenue
Fellow subsidiaries
Oracle America, Inc. − − 216.95 342.93
Oracle Austria GmbH − − 1.97 2.72
Oracle Belgium B.V.B.A/SPRL. − − 0.92 2.63
Oracle Bilgisayar Sistemleri Limited Sirketi − − − 0.46
Oracle (China) Software Systems Company − − 0.92 3.45
Limited
Oracle Canada ULC − − 53.14 66.08
Oracle Caribbean, Inc. − − 14.09 27.11
Oracle Colombia Limitada − − 18.56 19.86
Oracle Consulting Kazakhstan LLP − − − 0.11

2020 2019 2020 2019
Oracle Corporation (South Africa)(Pty) − − 43.68 63.40
Limited
Oracle Corporation (Thailand) Company − − 33.20 39.14
Limited
Oracle Corporation Australia Pty. Limited − − 289.81 248.28
Oracle Corporation Japan − − 192.31 475.60
Oracle Corporation Malaysia Sdn. Bhd. − − 23.48 20.98
Oracle Corporation Singapore Pte. Ltd. − − 87.04 23.02
Oracle Corporation UK Limited − − 22.93 140.14
Oracle Czech s.r.o. − − − 3.65
Oracle Danmark ApS − − 4.32 0.25
Oracle de Centroamerica, S.A. − − − 1.48
Oracle Deutschland B.V & Co. KG − − 1.65 −
Oracle East Central Europe Limited − − 50.26 30.12
Oracle de Mexico, S.A. de C.V. − − 2.22 2.53
Oracle do Brasil Sistemas Limitada − − 12.21 22.46
Oracle France, S.A.S. − − 45.93 12.38
Oracle East Central Europe Services B.V. − − − 7.32
Oracle Egypt Limited − − 19.99 195.21
Oracle Hardware ZAO − − 53.78 14.09
Oracle Hellas, S.A. − − 1.63 18.43
Oracle Hungary Kft. − − 6.56 10.22
Oracle Iberica, S.R.L. − − 3.48 72.29
Oracle India Private Limited − − 13.29 109.82
Oracle Italia S.r.l. − − 26.87 44.71
Oracle Korea, Ltd. − − 4.99 2.26
Oracle Nederland B.V. − − 178.11 42.08
Oracle New Zealand − − 6.25 10.80
Oracle Norge AS − − 4.17 2.88
Oracle (Philippines) Corporation − − 3.99 6.93
Oracle Serbia and Montenegro d.o.o − − 5.44 1.92
Oracle SRBIJA CRNA GORA d.o.o. − − 37.41 6.43
Oracle Polska, Sp.z.o.o. − − − 0.49
Oracle Portugal - Sistemas de Informacao − − 6.17 0.87
Lda.
Oracle Romania SRL − − 6.51 8.87
Oracle Slovensko spol. s r.o. − − 15.57 9.12
Oracle Systems Hong Kong Limited − − 39.23 37.36
Oracle Systems Limited − − 117.24 87.39
Oracle Systems Pakistan (Private) Limited − − 35.45 49.01
Oracle Taiwan LLC − − 53.31 112.67
Oracle Technology Systems (Kenya) Limited − − 3.51 35.80
Oracle Vietnam Pte. Ltd. − − 0.63 65.22
PT Oracle Indonesia − − 9.98 8.94
Sistemas Oracle de Chile, S.A. − − 4.41 4.61
Sistemas Oracle del Peru, S.A. − − 1.41 4.03
129
2020 2019 2020 2019
Rent expenses (including lease payments)
Fellow subsidiaries
Oracle India Private Limited 0.86 1.33 (3.08) (2.31)
Oracle (China) Software Systems Company 1.69 2.06 (0.27) (0.39)
Limited
Oracle Corporation Australia Pty. Limited 4.97 4.40 − (0.35)
Oracle Corporation Singapore Pte. Ltd. 23.18 26.48 (3.95) (2.03)
Oracle EMEA Limited (0.07) 0.21 − (0.07)
Oracle Hellas, S.A. 21.95 20.42 (2.50) (2.80)
Oracle Nederland B.V. 5.42 5.88 (5.53) (5.52)
Oracle France, S.A.S. 0.56 3.05 0.47 −
Oracle Corporation Japan 6.70 6.88 (0.57) (0.56)
Sistemas Oracle de Chile, S.A. 5.34 6.02 (1.79) (1.48)
Oracle Systems Limited 46.30 43.54 − −
Professional fee expenses

Ultimate Holding Company
Oracle Corporation 0.02 0.39 (0.42) (0.39)
Fellow subsidiaries
Oracle Corporation Australia Pty. Limited 2.04 1.83 (0.76) (1.83)
Oracle Corporation Japan 10.12 10.34 (2.59) (10.35)
Oracle Corporation (South Africa)(Pty) 0.61 (4.02) (0.43) (3.30)
Limited
Oracle Corporation UK Limited 5.34 7.06 (3.75) (7.03)
Oracle Colombia Limitada 0.30 (4.19) (0.30) −
Oracle Deutschland B.V & Co. KG 0.31 0.31 (0.09) (0.30)
Oracle France, S.A.S. 0.03 − (0.03) −
Oracle Italia S.R.L. − 4.43 − −
Oracle Iberica, S.R.L. − 3.40 (1.82) (4.89)
Oracle Systems Limited 10.82 10.02 (23.80) (13.05)
Oracle Technology Systems (Kenya) Limited (0.28) (3.08) − (0.28)
Oracle Hungary Kft. − 1.47 − −
Oracle Hellas, S.A. − 1.42 − (1.42)
Oracle Romania SRL − 2.12 − (1.57)
Oracle East Central Europe Limited 2.47 6.45 (5.31) −
Oracle de Mexico, S.A. de C.V. − 45.98 21.79 (38.81)
Oracle Research & Development Center, 35.03 36.75 (5.16) (10.82)
Shenzhen, Ltd.
Oracle Research and Development Centre, 0.42 (0.13) (0.10) −
Beijing, Ltd.
Oracle Canada ULC 34.11 15.46 (24.61) (8.24)
Oracle Do Brasil Sistemas Limitada 0.13 1.38 (1.15) (1.38)

2020 2019 2020 2019
Oracle Corporation (Thailand) Company − 4.52 − −
Limited
Oracle Corporation Malaysia Sdn. Bhd. − 3.72 − −
Oracle Czech s.r.o. − 1.46 − −
Oracle Korea, Ltd. − 0.30 − −
Oracle New Zealand − 8.77 − −
Oracle Solution Services (India) Private Ltd. 10.53 2.93 (0.28) (2.92)
Oracle Taiwan LLC 1.67 3.27 0.13 −
Oracle Egypt Limited − 0.49 − −
Oracle Polska, Sp.z.o.o. − 1.18 (1.24) (1.13)
Oracle EMEA Limited 41.30 11.28 (12.85) (44.40)
Oracle (Philippines) Corporation − 7.78 − −
Oracle Portugal - Sistemas de Informacao − 1.42 (2.26) (2.30)
Lda.
Oracle Systems Hong Kong limited − 10.91 − −
Oracle Vietnam Pte. Ltd. − 2.83 − −
Sistemas Oracle de Chile, S.A. 0.63 0.41 (1.15) (0.41)
PT Oracle Indonesia (0.05) 2.98 − −
Application software expenses

Fellow subsidiaries
Oracle India Private Limited − 3.64 − −
Other expenses
Oracle Corporation − − 9.82 −
Fellow subsidiaries
Oracle Italia S.R.L. 12.35 25.10 (5.98) (11.97)
Oracle Belgium B.V.B.A/SPRL. 0.12 0.02 − −
Oracle Corporation UK Limited 0.14 0.04 (0.15) −
Oracle Corporation Australia Pty. Limited 0.21 − (0.18) −
Oracle Do Brasil Sistemas Limitada 0.18 − (0.18) −
Oracle Technology Systems (Kenya) Limited (0.31) 0.18 − (3.02)
Oracle (China) Software Systems Company (0.15) (0.01) − −
Limited
Oracle Systems Hong Kong Limited 0.32 − (0.33) −
Oracle Taiwan LLC 0.99 0.08 (1.11) (2.16)
Oracle Czech s.r.o. − (0.35) − (0.05)
Oracle Egypt Limited 2.87 4.91 (2.20) (18.07)
Oracle East Central Europe Limited 5.63 3.57 (7.80) (5.66)
Oracle Hungary Kft. 3.91 4.06 (5.58) (1.67)
Oracle India Private Limited 18.02 (2.06) (5.06) (12.00)
131
2020 2019 2020 2019
Oracle Corporation Singapore Pte. Ltd. 0.72 (0.28) (0.67) −
Oracle Corporation (South Africa)(Pty) 15.43 12.40 (22.14) (60.56)
Limited
Oracle New Zealand 1.64 12.67 (4.73) (13.63)
Oracle Polska, Sp.z.o.o. 0.08 2.30 (3.63) (6.61)
Oracle Portugal - Sistemas de Informacao 1.26 1.65 (1.26) −
Lda.
Oracle Corporation (Thailand) Company 6.78 4.97 (12.02) (12.04)
Limited
Oracle Slovensko spol. s r.o. 1.57 − (1.57) −
Oracle Vietnam Pte. Ltd. 1.86 4.98 (2.95) (2.37)
Oracle (Philippines) Corporation 2.78 3.93 (8.27) (9.44)
Oracle Korea, Ltd. 0.30 0.51 (0.30) −
Sistemas Oracle de Chile, S.A. 0.23 − (0.23) −
Procurement of fixed assets

Fellow subsidiaries
Oracle Corporation Singapore Pte. Ltd. − 0.17 0.18 −
Oracle India Private Limited 2.18 509.61 − (108.88)
Staff Welfare Expenses

Fellow subsidiaries
Oracle Corporation Australia Pty. Limited (0.05) 2.47 (0.68) (0.55)
Oracle Corporation Japan − 0.54 − −
Oracle Corporation UK Limited (0.71) 8.41 (0.09) (0.85)
Oracle India Private Limited − − (0.05) −
Oracle Nederland B.V. (0.18) − 0.19 −
Oracle Systems Hong Kong Limited − 0.36 (0.37) (0.35)
Miscellaneous income (including sublease

receipts)
Fellow subsidiaries
Oracle America, Inc. 13.17 19.38 − −
Oracle Corporation UK Limited 36.44 20.76 9.54 −
Oracle Solution Services (India) Private Ltd. 24.83 16.54 − −
Oracle India Private Limited 71.55 52.74 − −
Security Deposit
Fellow subsidiaries

2020 2019 2020 2019
Other advances
Oracle Corporation − − 6.34 1.45
Fellow subsidiaries
Oracle America, Inc. − − − (3.59)
Oracle Polska, Sp.z.o.o. − − 5.64 5.91
Stock compensation expense

Oracle Corporation 118.80 94.37 0.22 −
Oracle Employee Stock Purchase Plan

Payment of equity dividend

Holding Company
Oracle Global (Mauritius) Limited − 8,196.66 − −
Key Managerial personnel − 17.37 − −
Independent Directors − 0.78 − −
Key Managerial personnel [Refer note (i) below]

Short-term employment benefits 62.11 50.16 − −
Post-employment retiral benefits 0.60 0.78 − −
Share based payments 138.21 148.43 − −
Commission
Independent Directors 15.65 10.14 (1.49) (0.32)
Reimbursement of expenses
Directors 3.07 3.05 − −
Note (i): Remuneration includes salary, bonus and perquisites. During the year, 52,250 OSUs under OFSS Stock
Plan 2014 (March 31, 2019 - 31,750 OSUs under OFSS Stock Plan 2014) were granted to KMP.
Note (ii): Terms and conditions of transactions with related parties:
The sales to and purchases from related parties are made on terms equivalent to those that prevail in arm's length
transactions. Outstanding balances at year end are unsecured and interest free and settlement occurs in cash.
Note 39: Tax litigations

As at March 31, 2020, the OFSS group has certain litigations with respect to tax matters for various assessment years
amounting to ₹ 11,388.20 million (March 31, 2019 - ₹ 9,602.47 million), which are pending before various appellate
/ tax authorities. The management expects that its position will be upheld on ultimate resolution and the possibility
of any outflow of resources is remote. Demand of tax payable after adjusting taxes paid under protest and refunds
amounts to ₹ 5,476.48 million (March 31, 2019 - ₹ 3,549.47 million) as at March 31, 2020. Further for certain
litigations the OFSS group has aggregate provisions of ₹ 886.21 million (March 31, 2019 - ₹ 1,030.66 million) as at
March 31, 2020.
133
Note 40: Segment information
Business segments are defined as a distinguishable component of an enterprise that is engaged in providing a group
of related products or services and that is subject to differing risks and returns and about which separate financial
information is available. This information is reviewed and evaluated regularly by the management in deciding how to
allocate resources and in assessing the performance.
The OFSS group is organized by business segment and geographically. For management purposes the OFSS group is
primarily organized on a worldwide basis into three business segments:
a) Product licenses and related activities ('Products')
b) IT solutions and consulting services ('Services') and
c) Business Process Outsourcing services ('BPO - Services')
The business segments are the basis on which the OFSS group reports its primary operational information to
management.
Product licenses and related activities segment deals with various banking software products. The related activities
include enhancements, implementation and maintenance activities.
IT solutions and consulting services segment offers services spanning the entire lifecycle of applications used by
financial service institutions. The division’s portfolio includes Consulting, Application, Support and Technology
Services that help institutions improve efficiency, optimize costs, meet risk and compliance mandates and implement
IT solutions finely attuned to their business needs.
BPO - Services comprises of business process outsourcing services to the Lending, Collections, Customer Service and
Capital Markets industry.
Segment revenue and expense:
Revenue is generated through licensing of software products, maintenance fees as well as by providing software
solutions to the customers including consulting services and business process outsourcing services. The income and
expenses which are not directly attributable to a business segment are shown as unallocable income and expenses.
Segment assets and liabilities:
Segment assets include all operating assets used by a segment and consist principally of trade receivables net of
allowances, unbilled revenue, deposits for premises, property, plant and equipment and right-of-use asset. Segment
liabilities primarily includes trade payables, deferred revenues, advance from customer, employee benefit obligations,
lease liability and other liabilities. While most of such assets and liabilities can be directly attributed to individual
segments, the carrying amount of certain assets and liabilities used jointly by two or more segments is allocated to
the segment on a reasonable basis. Assets and liabilities that cannot be allocated between the segments are shown
as part of unallocable assets and liabilities.

Particulars Products Services BPO - Total
Services
Revenue 43,145.69 4,275.92 1,191.15 48,612.76
Segment result 21,359.45 778.00 388.10 22,525.55
Finance income 1,658.14
Other income, net 115.25
Profit before tax 22,522.81
Tax expenses (7,900.64)
Net profit 14,622.17

Particulars Products Services BPO - Total
Services
Revenue 43,527.29 4,945.07 1,116.67 49,589.03
Segment result 21,465.57 635.61 323.37 22,424.55
Net profit 13,858.98
Other information

Particulars Products Services BPO - Unallocable Total
Services
Capital expenditure by segment
Property, Plant and Equipment 309.42 47.81 41.04 32.75 431.02
Depreciation and amortization 822.46 81.32 108.04 51.99 1,063.81
Other non cash expenses 87.07 12.26 0.50 0.18 100.01
Segment assets 20,482.81 2,018.19 705.31 57,007.13 80,213.44
Segment liabilities 9,303.69 831.99 317.63 4,064.33 14,517.64
Equity 65,695.80 65,695.80

Particulars Products Services BPO - Unallocable Total
Services
Property, Plant and Equipment 613.85 151.33 8.33 35.50 809.01
Depreciation and amortization 430.04 51.11 34.69 21.33 537.17
Other non cash expenses 210.53 29.47 0.78 0.03 240.81
Segment assets 20,650.04 2,198.82 447.13 38,018.43 61,314.42
Segment liabilities 8,807.22 845.94 117.43 2,178.44 11,949.03
Equity 49,365.39 49,365.39
Geographical segments
The following table shows the distribution of the OFSS group's consolidated sales by geographical market:

March 31, 2020 March 31, 2019
Regions Amounts in % Amounts in %
₹ million ₹ million
India 2,882.28 6% 2,758.83 6%
Outside India
Americas
United States of America 13,017.38 27% 13,860.50 28%
Rest of America 3,203.84 7% 3,081.22 6%
Europe 7,939.12 16% 7,841.02 16%
Asia Pacific 12,531.52 26% 12,870.22 26%
Middle East and Africa 9,038.62 18% 9,177.24 18%
48,612.76 100% 49,589.03 100%
135
Revenue of ₹ 21,342.20 million (March 31, 2019 - ₹ 23,142.29 million) is derived from a single customer in 'Products',
'Services' and 'BPO - Services' segment.
The following table shows the OFSS group's consolidated non current assets by geographical market:
As at As at
March 31, 2020 March 31, 2019
India 10,970.59 61% 10,186.07 60%
Outside India
Americas
Rest of America 4.26 0% 22.38 0%
Europe 1,199.32 7% 967.49 6%
Asia Pacific 486.50 3% 505.75 3%
Middle East and Africa 62.55 0% 20.62 0%
17,997.56 100% 16,841.69 100%
Non current assets for this purpose consist of property, plant and equipment, capital work-in-progress, right-of-use
assets, investment property, intangible assets, non-current income tax asset and other non-current assets.

DIN: 00969094

DIN: 02115514 ACS: 8547

May 14, 2020 May 14, 2020

Consolidated statement of cash flow
March 31, 2020 March 31, 2019
Cash flows from operating activities
Adjustments to reconcile profit before tax to cash (used in) provided by
operating activities:
Depreciation and amortization 1,063.81 537.17
(Profit) on sale of fixed assets, net (0.31) (0.51)
Impairment loss recognized on other financial assets 7.06 3.42
Bad debts 200.18 865.89
Finance income (1,658.14) (1,319.73)
Employee stock compensation expense 544.01 610.67
Effect of exchange rate changes in cash and cash equivalent (849.69) 5.75
Effect of exchange rate changes in assets and liabilities 769.91 (205.99)
Finance cost 473.65 −
Deferred rent − 2.73
Operating Profit before Working Capital changes 22,966.06 22,540.77
Movements in working capital

(Increase) in other non-current financial assets (809.22) −
Decrease in other non-current assets 135.53 21.99
Decrease in trade receivables 633.32 616.44
Decrease in other current financial assets 1,160.39 2,117.45
(Increase) in other current assets (211.02) (1,483.53)
Increase (decrease) in non-current financial liabilities 10.20 (1.71)
(Decrease) in other non-current liabilities (10.39) (28.35)
Increase in non-current provisions 97.09 125.38
(Decrease) increase in trade payables (216.52) 44.29
(Decrease) in other current financial liabilities (439.25) (615.23)
(Decrease) increase in current liabilities (347.73) 191.03
(Decrease) in current provisions (31.78) (89.51)
Cash from operating activities 22,936.68 23,439.02
Payment of domestic and foreign taxes (7,718.49) (9,642.90)
Net cash provided by operating activities 15,218.19 13,796.12
Cash flows from investing activities

Purchase of property, plant and equipment (535.86) (767.41)
Proceeds from sale of property, plant and equipment 0.40 2.82
Refund of deposits for premises and others 5.16 28.18
Bank fixed deposits having maturity of more than three months 19,852.25 25,063.29
matured
Bank fixed deposits having maturity of more than three months booked (34,485.01) (23,232.79)
Interest received 1,281.42 1,114.20
Income from investment in sublease 40.55 −
Net cash (used in)/provided by investing activities (13,841.09) 2,208.29
137
Consolidated statement of cash flow
for the year ended March 31, 2020 (continued)
March 31, 2020 March 31, 2019
Cash flows from financing activities
Proceeds from issue of shares under employee stock option plan 43.19 749.91
Sale of treasury shares 85.15 165.75
Equity dividend paid (36.08) (11,124.23)
Tax on equity dividend paid − (2,288.39)
Repayment of lease liability (449.47) −
Interest paid (116.33) −
Net cash (used in) financing activities (473.54) (12,496.96)
Net increase in cash and cash equivalents 903.56 3,507.45

Cash and cash equivalents at beginning of the year 11,562.69 8,060.99
Effect of exchange rate changes in cash and cash equivalents 849.69 (5.75)
Cash and cash equivalents at end of the year 13,315.94 11,562.69
Component of cash and cash equivalents

In current accounts* 12,935.04 9,734.89
In unclaimed dividend account** 80.55 116.63
Total cash and cash equivalents [Refer note 9 (a)] 13,315.94 11,562.69
* Current account includes ₹ 0.76 million (March 31, 2019 ₹ 0.08 million) on account of restricted cash and bank
balances held by i-flex Employee Stock Option Trust controlled by the Company.
**These balances will be utilized only towards the respective unclaimed dividend.

DIN: 00969094

DIN: 02115514 ACS: 8547

May 14, 2020 May 14, 2020

Statement pursuant to first proviso to sub-section (3) of section 129 of the Companies Act, 2013, read with rule 5 of
Companies (Accounts) Rules, 2014 in the prescribed Form AOC-1 relating to subsidiary companies
Sr. Name of the Subsidiary Reporting Reporting Exchange Share Reserves Total Total Investments Turnover Profit Provision Profit Proposed % of
No. period Currency rate capital and assets Liabilities before for after Dividend Shareholding
Surplus taxation taxation taxation
Subsidiaries
1 Oracle Financial Services Software 31-Mar-20 EURO 83.16 776.31 2,476.90 5,934.66 3,252.32 570.87 13,359.67 613.17 53.37 559.80 − 100%
B.V.
2 Oracle Financial Services Software SA 31-Mar-20 EURO 83.16 385.57 (303.52) 390.66 308.61 − 496.88 (73.73) 33.80 (107.53) − 100%
3 Oracle Financial Services Software 31-Mar-20 USD 75.43 6.63 603.65 5,016.61 4,406.33 − 11,940.87 110.44 595.04 (484.60) − 100%
Pte. Ltd.
4 Oracle Financial Services Consulting 31-Mar-20 USD 75.43 − 6.79 7.00 0.21 − − (0.21) − (0.21) − 100%
Pte. Ltd.
5 Oracle Financial Services Software 31-Mar-20 USD 75.43 − 10,410.59 21.95 − 10,388.64 − (0.10) (0.02) (0.08) − 100%
America, Inc.
6 Oracle Financial Services Software, 31-Mar-20 USD 75.43 − 8,632.41 12,093.53 3,461.12 − 15,528.36 1,612.73 864.52 748.21 − 100%
Inc.
7 Mantas Inc. 31-Mar-20 USD 75.43 − 215.91 218.02 2.11 − − 0.14 0.03 0.11 − 100%
8 Sotas Inc. 31-Mar-20 USD 75.43 − 20.85 21.33 0.48 − − (3.01) 0.02 (3.03) − 100%
9 Mantas India Private Limited 31-Mar-20 INR 1.00 15.00 6.22 21.24 0.02 − − 1.25 0.32 0.93 − 100%
10 ISP Internet Mauritius Company 31-Mar-20 USD 75.43 196.74 79.79 182.82 1.12 94.83 − 17.74 0.67 17.07 − 100%
11 Oracle (OFSS) BPO Services Inc. 31-Mar-20 USD 75.43 0.01 (735.62) 104.55 840.16 − 172.42 6.46 13.40 (6.94) − 100%
12 Oracle (OFSS) BPO Services Limited 31-Mar-20 INR 1.00 58.19 (52.60) 379.59 374.00 − 209.33 (104.32) − (104.32) − 100%
13 Oracle (OFSS) Processing Services 31-Mar-20 INR 1.00 13.00 366.14 436.34 57.37 0.17 460.37 119.53 30.77 88.76 − 100%
Limited
14 Oracle (OFSS) ASP Private Limited 31-Mar-20 INR 1.00 51.70 (10.56) 41.75 0.61 − − 1.07 0.63 0.44 − 100%
15 Oracle Financial Services Software 31-Dec-19 CLP 0.09 80.74 358.48 768.65 329.43 − 600.89 88.23 23.60 64.63 − 100%
Chile Limitada
16 Oracle Financial Services Software 31-Dec-19 CNY 10.64 46.05 100.01 273.06 127.00 − 362.74 11.74 21.75 (10.01) − 100%
(Shanghai) Limited
Controlled Trust
17 i-flex Employee Stock Option Trust 31-Mar-20 INR 1.00 − 1,023.56 1,025.38 1.82 − − 99.97 27.98 71.99
Total 1,629.94 23,199.00 26,937.14 13,162.71 11,054.51 43,131.53 2,501.10 1,665.88 835.22 −
For and on behalf of the Board of Directors of

S Venkatachalam
Chairperson
DIN: 00257819
Mumbai, India
June 24, 2020
139
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Unconsolidated financials
Financial statements for the year ended March 31, 2020 prepared in
accordance with Ind AS (Unconsolidated).
141
Independent Auditor’s Report
To the Members of Oracle Financial Services Software Limited
Report on the Audit of Standalone Ind AS Financial Statements
1. Opinion
We have audited the accompanying standalone Ind AS financial statements of Oracle Financial Services Software
Limited (“the Company”), which comprise the Balance Sheet as at March 31, 2020, the Statement of Profit
and Loss including Other Comprehensive Income, the Statement of Changes in Equity and the Statement of
Cash Flows for the year then ended, and notes to the financial statements, including a summary of significant
accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid
standalone Ind AS financial statements give the information required by the Companies Act, 2013 (“the Act”)
in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards
prescribed under Section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules, 2015,
as amended, (“Ind AS”) and other accounting principles generally accepted in India, of the state of affairs of the
Company as at March 31, 2020, the profit and total other comprehensive income, changes in equity and its cash
flows for the year ended on that date.
2. Basis for Opinion
We conducted our audit of the standalone Ind AS financial statements in accordance with the Standards on
Auditing specified under Section 143(10) of the Act. Our responsibilities under those Standards are further
described in the Auditor’s Responsibilities for the Audit of the standalone Ind AS Financial Statements section
of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute
of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the
standalone Ind AS financial statements under the provisions of the Companies Act, 2013 (“the Act”) and the
Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements
and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion on standalone Ind AS financial statements.
3. Key Audit Matter
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of
the standalone Ind AS financial statements of the current year. These matters were addressed in the context of
our audit of the standalone Ind AS financial statements as a whole, and in forming our opinion thereon, and we
do not provide a separate opinion on these matters. We have determined the matters described below to be the
key audit matters to be communicated in our report.

No.
1. Evaluation of income tax provision Principal Audit Procedures:
The Company has uncertain income tax a) Evaluated the design and tested the operating
positions which includes matters under dispute effectiveness of the relevant controls, through
involving significant judgment to determine the combination of procedures involving inquiry
possible outcome of these disputes. and observation, reperformance and inspection
of evidence in respect of operation of these
Management is required to ensure compliance controls to assess how the Company monitors
with tax laws, including transfer pricing income tax and related developments and
mechanism and appropriately determine the their assessment of the potential impact on the
tax expense and its consequential impact on Company.
adequacy of provision for income tax and
deferred tax. b) For uncertain tax positions, obtained details of
income tax assessments, appeal orders and
income tax demands from management.

No.
From April 1, 2019, pursuant to the introduction c) Evaluated the management’s underlying
of Appendix C “Uncertainty over Income tax assumptions of the validity and adequacy of
Treatments” in Ind AS 12 “Income taxes”, the provisions for uncertain income tax positions
Company has during the year ended March 31, and evaluated the basis of determination of
2020, reviewed the uncertain tax positions in the possible outcome of the disputes. Also
respect of all matters and wherever considered considered legal precedence and other rulings
appropriate recognised income tax provisions and read, where applicable, external advice
relating to uncertain income tax treatments and sought by the Company for these uncertain
the related interest expense thereon. income tax positions and reviewed related
correspondence in evaluating management’s
Refer note 2.2(f), 16, 26 (v), 27(b) and 39 of the position on these uncertain income tax matters.
Standalone Ind AS Financial Statements. We discussed with management and understood
the rationale for recording the provision for
uncertain tax positions.
d) Tested current income tax and deferred tax
computation provided by the management
and checked the arithmetical accuracy of the
amounts reported for current and deferred
tax, including assessment of effective tax rate
reconciliation to evaluate the Company’s total
income tax expense for the year.
2. Revenue Recognition Principal Audit Procedures:
The Company’s revenue streams consist of a) Evaluated whether the revenue recognition
license fees, maintenance fees and consulting of the Company is in accordance with the
fees – fixed price and time & material contracts. accounting policies and principles of Ind AS 115.
Revenue from contracts with customers is b) Obtained an understanding of management’s
recognized in accordance with the requirements internal controls over the revenue process and
of Ind AS 115, Revenue from Contracts with evaluated whether these were designed in line
Customers (“Ind AS 115”). with the Ind AS 115. Tested relevant internal
controls, including information technology (IT)
The application of Ind AS 115 involves certain controls, over revenue process. Carried out a
key judgements relating to identification of combination of procedures involving inquiry and
distinct performance obligations, determination observation, reperformance and inspection of
of the transaction price, allocation of transaction evidence in respect of operation of these controls.
price to the identified performance obligations
especially to license fees, the appropriateness of c) Performed following procedures on a sample
the basis used to measure revenue recognised of revenue contracts entered into by Company,
over time or at a point in time, including relevant selected on a test check basis as deemed
cut-off at period end dates. appropriate:
Refer note 2.2.(e), 17, 26 (viii) and 43 of the i) Read and identified the distinct
standalone Ind AS Financial Statements. performance obligations in these contracts
and compared these performance
obligations with those identified and
recorded in the books of accounts.
ii) Read the terms of the contracts and

checked determination of the transaction
price including any variable consideration.
Also, checked management’s evaluation
of the stand-alone selling price for each
performance obligation.
iii) Tested the basis used by the management

to measure revenue recognised over time
or at a point in time as per the requirements
of Ind AS 115.
d) Performed cut-off testing procedures (by
selecting a sample of contracts either side
of year-end) to test that revenue has been
recognised in the appropriate accounting period.
143
4. Information other than the standalone Ind AS financial statements and Auditor’s report thereon
The Company’s Board of Directors is responsible for the preparation of the other information. The other information
comprises the information included in the Directors Report, Corporate Governance Report and Management
Discussion and Analysis, but does not include the standalone Ind AS financial statements and our auditor’s report
thereon. These reports are expected to be made available to us after the date of our auditor’s report.
Our opinion on the standalone Ind AS financial statements does not cover the other information and we will not
express any form of assurance thereon.
In connection with our audit of the standalone Ind AS financial statements, our responsibility is to read the other
information identified above when it becomes available and, in doing so, consider whether the other information
is materially inconsistent with the standalone Ind AS financial statements or our knowledge obtained in the audit,
or otherwise appears to be materially misstated.
When we read the other information included in the above reports, if we conclude that there is material
misstatement therein, we are required to communicate the matter to those charged with governance and
determine the actions under the applicable laws and regulations.
5. Management’s responsibility for the standalone Ind AS Financial Statements
The Company’s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect
to the preparation of these standalone Ind AS financial statements that give a true and fair view of the financial
position, financial performance, total comprehensive income, changes in equity and cash flows of the Company
in accordance with the Ind AS and other accounting principles generally accepted in India. This responsibility
also includes maintenance of adequate accounting records in accordance with the provisions of the Act for
safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities;
selection and application of appropriate accounting policies; making judgments and estimates that are
reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant
to the preparation and presentation of the standalone Ind AS financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
In preparing the standalone Ind AS financial statements, Company’s Board of Directors is responsible for
assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to
going concern and using the going concern basis of accounting unless Board of Directors either intends to
liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors are also responsible for overseeing the Company’s financial reporting process.
6. Auditor’s Responsibilities for the Audit of the standalone Ind AS Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone Ind AS financial statements
as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report
that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit
conducted in accordance with Standards on auditing will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of these
standalone Ind AS financial statements.
As part of an audit in accordance with Standards on auditing, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
i) Identify and assess the risks of material misstatement of the standalone Ind AS financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain
audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting
a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
ii) Obtain an understanding of internal financial controls relevant to the audit in order to design audit
procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also
responsible for expressing our opinion on whether the Company has adequate internal financial controls
system in place and the operating effectiveness of such controls.
iii) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by management.
iv) Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based
on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may
cast significant doubt on the ability of the Company to continue as a going concern. If we conclude that a
material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures
in the standalone Ind AS financial statements or, if such disclosures are inadequate, to modify our opinion.
Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However,
future events or conditions may cause the Company to cease to continue as a going concern.
v) Evaluate the overall presentation, structure and content of the standalone Ind AS financial statements,
including the disclosures, and whether the standalone Ind AS financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters that
may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of
most significance in the audit of standalone Ind AS financial statements of the current period and are therefore
the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.
7. Report on Other Legal and Regulatory Requirements
i) As required by the Companies (Auditor’s report) Order, 2016 (“the Order”) issued by the Central Government
of India in terms of sub-section (11) of section 143 of the Act, we give in the “Annexure 1” a statement on
the matters specified in paragraphs 3 and 4 of the Order.
ii) As required by section 143 (3) of the Act, based on our audit we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge
and belief were necessary for the purpose of our audit of standalone Ind AS Financial Statements.
b) In our opinion, proper books of account as required by law have been kept by the Company so far as
it appears from our examination of those books.
c) The Balance Sheet, Statement of Profit and Loss including Other Comprehensive Income, the
Statement of Cash Flow and Statement of Changes in Equity dealt with by this Report are in agreement
with the books of account.
d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Ind AS specified
under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of written representations received from the directors as on March 31, 2020, taken on
record by the Board of Directors, none of the directors is disqualified as on March 31, 2020, from
being appointed as a director in terms of section 164 (2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company
and the operating effectiveness of such controls, refer to our separate Report in “Annexure 2” to this
report.
g) With respect to the other matters to be included in the Auditor’s Report in accordance with the
requirements of section 197(16) of the Act, as amended, in our opinion and to the best of our
information and according to the explanations given to us, the remuneration paid by the Company to
its directors during the year is in accordance with the provisions of section 197 of the Act.
h) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of
the Companies (Audit and Auditors) Rules, 2014, as amended in our opinion and to the best of our
information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on the financial position in its
standalone Ind AS financial statements – Refer Note 27 (b) and Note 39 to the standalone Ind
AS financial statements;
ii. The Company did not have any long-term contracts including derivative contracts for which
there were any material foreseeable losses; and
iii. There were no amounts which were required to be transferred to the Investor Education and
Protection Fund by the Company.

(S.M.Chitale)
Partner
M. No. 111383
UDIN: 20111383AAAACX1528
Date: May 14, 2020

Place: Mumbai
145
Annexure 1 to the Independent Auditor’s Report of even date on the standalone Ind AS financial
Referred to in paragraph [7(i)] under Report on Other Legal and Regulatory Requirements of our
report of even date
(i) a) The Company has maintained proper records showing full particulars, including quantitative details and
situation of fixed assets.
b) Fixed assets have been physically verified by the management during the year and no material discrepancies
were identified on such verification.
c) According to the information and explanations given by the management, the title deeds of immovable
properties included in property, plant and equipment are held in the name of the Company.
(ii) The Company’s business does not involve inventories and, accordingly, the requirements under paragraph 3(ii)
of the Companies (Auditor’s report) Order, 2016 (“the Order”) are not applicable to the Company.
(iii) According to the information and explanations given to us, the Company has not granted any loans, secured or
unsecured to companies, firms, limited liability partnerships or other parties covered in the register maintained
under section 189 of the Companies Act, 2013 (“the Act”). Accordingly, the provisions of paragraph 3(iii)(a), (b)
and (c) of the Order are not applicable to the Company and hence not commented upon.
(iv) In our opinion and according to the information and explanations given to us, provisions of section 186 of the
Act in respect of investments made have been complied with by the Company. In our opinion and according to
the information and explanations given to us, there are no loans, guarantees and securities granted in respect of
which provisions of section 185 and section 186 of the Act are applicable and hence not commented upon.
(v) The Company has not accepted any deposits within the meaning of Sections 73 to 76 of the Act and the
Companies (Acceptance of Deposits) Rules, 2014 (as amended). Accordingly, the provisions of clause 3(v) of
the Order are not applicable to the Company.
(vi) According to the information and explanations given to us, the Central Government has not specified the
maintenance of cost records under Section 148(1) of the Act, for the products/services of the Company.
(vii) a) Undisputed statutory dues including provident fund, income-tax, sales tax, service tax, duty of customs,
value added tax, cess and other material statutory dues have generally been regularly deposited with the
appropriate authorities though there have been considerable delays in few cases of foreign withholding tax.
As explained to us, the Company did not have any dues of excise duty.
b) According to the information and explanations given to us, there were no undisputed dues in respect
of provident fund, income-tax, service tax, sales-tax, duty of customs, value added tax, cess and other
material statutory dues which were outstanding, at the year end, for a period of more than six months from
the date they became payable.
c) According to the records of the Company, the dues outstanding of income-tax, sales tax, service tax, duty
of customs, value added tax and cess on account of any dispute, are as follows:
Name of the Nature of the dues Amount (Rs) Period to which Forum where
statute the amount dispute is pending
relates
Income Tax 18,764 April 2007 to Income Tax Appellate
March 2008 Tribunal
Tax Deducted at 32,15,88,447 April 2011 to Commissioner of
Source March 2012 Appeal (Income-tax)
Income Tax 202,54,47,376 April 2014 to Commissioner of
The Income Tax March 2015 Appeal (Income-tax)
Act, 1961 Tax Deducted at 29,32,50,728 April 2014 to Commissioner of
Income Tax 1,57,93,04,913 April 2015 to Commissioner of
March 2016 Appeal (Income-tax)
Income Tax 21,74,35,490 April 2017 to Assistant Director of
March 2018 Income Tax, CPC

Name of the Nature of the dues Amount (Rs) Period to which Forum where
statute the amount dispute is pending
relates
Sales Tax (MVAT) 2,89,43,706 April 2012 to Joint Commissioner
March 2013 of Sales Tax (Appeals)
Maharashtra Value March 2014 of Sales Tax (Appeals)
Added Tax Act,
2002 Sales Tax (MVAT) 1,98,90,239 April 2014 to Joint Commissioner
Central Sales Tax Sales Tax (CST) 4,57,394 April 2013 to Joint Commissioner
Act, 2002 March 2014 of Sales Tax (Appeals)
Note 1: The demand of Income Tax as reported above is net of demand paid under protest and refunds
adjusted against said demand of Rs. 172,55,08,153.
Note 2: The demand of Sales Tax as reported above is net of demand paid under protest against said
demand of Rs. 99,30,690.
(viii) The Company did not have any outstanding loans or borrowing dues in respect of a financial institution or bank
or to government or dues to debenture holders during the year.
(ix) According to the information and explanations given by the management, the Company has not raised any
money by way of initial public offer or further public offer or debt instruments and term loans, hence reporting
under paragraph 3 (ix) is not applicable to the Company.
(x) Based upon the audit procedures performed for the purpose of reporting the true and fair view of the standalone
Ind AS financial statements and according to the information and explanations given by the management, we
report that no material fraud by the company or no material fraud on the Company by the officers and employees
of the Company has been noticed or reported during the year. As explained to us by the management, instances
involving non-compliances with Code of Ethics and Business Conduct of the Company by few employees were
noticed during the year on the basis of internal investigation carried out by the Company, wherein suitable action
has been taken and the Company is evaluating future course of action, if any.
(xi) According to the information and explanations given by the management, the managerial remuneration has
been paid / provided in accordance with the requisite approvals mandated by the provisions of section 197 read
with Schedule V to the Act.
(xii) In our opinion, the Company is not a nidhi company. Therefore, the provisions of paragraph 3(xii) of the Order
are not applicable to the Company.
(xiii) According to the information and explanations given by the management, transactions with the related parties
are in compliance with section 177 and 188 of the Act where applicable and the details have been disclosed in
the notes to the standalone Ind AS financial statements, as required by the applicable accounting standards.
(xiv) According to the information and explanations given to us and on an overall examination of the balance sheet,
the Company has not made any preferential allotment or private placement of shares or fully or partly convertible
debentures during the year under review and hence, reporting requirements under paragraph 3(xiv) are not
applicable to the Company.
(xv) According to the information and explanations given by the management, the Company has not entered into any
non-cash transactions with directors or persons connected with them as referred to in section 192 of the Act.
(xvi) According to the information and explanations given to us, the provisions of section 45-IA of the Reserve Bank
of India Act, 1934 are not applicable to the Company.

(S.M.Chitale)
Partner
M. No. 111383
Date: May 14, 2020

Place: Mumbai
147
Annexure 2 to the Independent Auditor’s Report of even date on the standalone Ind AS financial
Referred to in paragraph [7(ii)(f)] under Report on Other Legal and Regulatory Requirements of
our report of even date
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the
Companies Act, 2013 (“the Act”)
1. We have audited the internal financial controls over financial reporting of Oracle Financial Services Software
Limited (“the Company”) as of March 31, 2020 in conjunction with our audit of the standalone Ind AS financial
statements of the Company for the year ended on that date.
Management’s Responsibility for Internal Financial Controls
2. The Company’s management is responsible for establishing and maintaining internal financial controls based
on the internal control over financial reporting criteria established by the Company considering the essential
components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial
Reporting (the “Guidance Note”) issued by the Institute of Chartered Accountants of India” (ICAI). These
responsibilities include the design, implementation and maintenance of adequate internal financial controls that
were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to
company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy
and completeness of the accounting records, and the timely preparation of reliable financial information, as
required under the Companies Act, 2013.
Auditors’ Responsibility
3. Our responsibility is to express an opinion on the Company's internal financial controls over financial reporting
based on our audit. We conducted our audit in accordance with the Guidance Note and the Standards on
Auditing as specified under section 143(10) of the Act, to the extent applicable to an audit of internal financial
controls and both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance
Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable
assurance about whether adequate internal financial controls over financial reporting was established and
maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial
controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls
over financial reporting included obtaining an understanding of internal financial controls over financial
reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating
effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor’s
judgment, including the assessment of the risks of material misstatement of the financial statements, whether
due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion on the Company’s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting

4. A company's internal financial control over financial reporting is a process designed to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting principles. A company's internal financial control
over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records
that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the
company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation
of financial statements in accordance with generally accepted accounting principles, and that receipts and
expenditures of the company are being made only in accordance with authorisations of management and
directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of
unauthorised acquisition, use, or disposition of the company's assets that could have a material effect on the
financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
5. Because of the inherent limitations of internal financial controls over financial reporting, including the possibility
of collusion or improper management override of controls, material misstatements due to error or fraud may
occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial
reporting to future periods are subject to the risk that the internal financial control over financial reporting may
become inadequate because of changes in conditions, or that the degree of compliance with the policies or
procedures may deteriorate.

Opinion
6. In our opinion, the Company has, in all material respects, an adequate internal financial controls system over
financial reporting and such internal financial controls over financial reporting were operating effectively as at
March 31, 2020, based on the internal control over financial reporting criteria established by the Company
considering the essential components of internal control stated in the Guidance Note on Audit of Internal
Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.

(S.M.Chitale)
Partner
M. No. 111383
Date: May 14, 2020

Place: Mumbai
149
Balance sheet
as at March 31, 2020
Notes March 31, 2020 March 31, 2019
ASSETS
Non-current assets
Property, plant and equipment 3 2,213.94 2,385.67
Capital work-in-progress 3 0.16 4.05
Right-of-use asset 4 622.57 −
Investment property 5 102.00 102.00
Financial assets
Investments in subsidiaries 6 7,681.61 7,650.28
Other non-current financial assets 7 1,376.59 622.17
Deferred tax assets (net) 16(c) 740.39 415.67
Income tax assets (net) 7,705.59 7,225.51
Other non-current assets 10 345.25 661.30
20,788.10 19,066.65
Current assets
Financial Assets
Trade receivables 8 4,154.31 4,866.30
Loan 42 106.00 −
Cash and cash equivalents 9(a) 1,993.84 2,713.65
Other bank balances 9(b) 30,545.37 14,351.10
Other current financial assets 7 1,656.02 2,237.33
Other current assets 10 1,424.00 1,218.72
39,879.54 25,387.10
TOTAL 60,667.64 44,453.75
EQUITY AND LIABILITIES

Equity
Equity share capital 11 429.40 428.90
Other equity 12 54,653.61 38,374.84
Total equity 55,083.01 38,803.74
Non- current liabilities
Other non-current liabilities 14 − 123.46
Provisions 15 1,150.97 965.71
1,434.22 1,089.17
Current liabilities
Trade payables
Payable to micro and small enterprises 13(a) 2.58 3.04
Payable to others 13(a) 263.00 420.05
Other current financial liabilities 13(b) 1,577.10 1,855.87
Other current liabilities 14 1,060.07 1,004.54
Provisions 15 951.83 889.30
Income tax liabilities (net) 26.48 388.04
4,150.41 4,560.84
TOTAL 60,667.64 44,453.75
The accompanying notes form an integral part of the financial statements.

DIN: 00969094
DIN: 02115514 ACS: 8547
May 14, 2020 May 14, 2020

Statement of profit and loss
(Amounts in ₹ million, except share data)

Notes Year ended Year ended
March 31, 2020 March 31, 2019
Revenue from operations 17 35,255.08 35,808.97
Finance income 18 1,508.73 1,173.47
Other income, net 19 182.86 216.03
Total income 36,946.67 37,198.47
EXPENSES
Employee benefit expenses 20 11,909.23 11,896.09
Travel related expenses 1,593.78 1,741.70
Professional fees 1,311.47 1,366.75
Finance cost 21 80.18 −
Other operating expenses 22 1,134.50 1,827.80
Depreciation and amortization 3&4 831.72 501.98
Total expenses 16,860.88 17,334.32
Tax expenses 16
Current tax 4,560.70 6,428.91
Deferred tax (301.47) 610.54
Total tax expenses 4,259.23 7,039.45
Items that will not be reclassified subsequently to profit or loss
Actuarial (loss) gain on gratuity fund (92.36) 39.87
Deferred tax 16 23.25 (13.93)
Items that will be reclassified subsequently to profit or loss
Exchange differences on translation of foreign operations 35.57 (0.11)
Total other comprehensive income for the year, net of tax (33.54) 25.83
Earnings per equity share of par value of ₹ 5 (March 31, 2019 ₹ 5) 23
each (in ₹)
Basic 184.39 149.77
Diluted 183.62 149.01

DIN: 00969094
DIN: 02115514 ACS: 8547
May 14, 2020 May 14, 2020
151
Statement of changes in equity
Particulars Equity share capital Other equity Total
No. of Share Share Securities General Employee Contribution Retained Other comprehensive equity
shares capital application premium reserve stock from earnings income attributable
money options Ultimate to equity
Foreign Remeasurement share
pending outstanding Holding currency of defined
allotment Company holders
translation benefit of the
reserve obligation Company

Balance as of April 1, 2019 85,779,147 428.90 0.48 15,140.91 10,145.19 1,647.37 41.86 11,389.67 9.36 − 38,803.74
Changes in equity for the year
ended March 31, 2020
Application money received for − − 43.19 − − − − − − − 43.19
exercised options
Shares issued for exercised 100,151 0.50 (43.67) 43.17 − − − − − − −
options
Stock compensation charge − − − − − 424.65 18.41 − − − 443.06
Forfeiture of options − − − − − (28.82) − 28.82 − − −
Stock compensation related to − − − 316.41 − (316.41) − − − − −
options exercised
Profit for the year − − − − − − − 15,826.56 − − 15,826.56
Actuarial (loss) gain on gratuity − − − − − − − − − (69.11) (69.11)
fund including deferred tax
thereon
Exchange differences on − − − − − − − − 35.57 − 35.57
translation of foreign operations
Actuarial (loss) gain on gratuity − − − − − − − (69.11) − 69.11 −
fund including deferred tax
thereon transferred to retained
earnings
Balance as of March 31, 2020 85,879,298 429.40 − 15,500.49 10,145.19 1,726.79 60.27 27,175.94 44.93 − 55,083.01
No. of Share Share Securities General Employee Contribution Retained Other comprehensive income attributable
shares capital application premium reserve stock from earnings Foreign Remeasurement to equity
money options Ultimate currency of defined share
pending outstanding Holding translation benefit holders
allotment Company reserve obligation of the
Company
Balance as of April 1, 2018 85,416,893 427.08 1.91 13,663.54 10,145.19 1,899.06 28.91 11,895.87 9.47 − 38,071.03
Changes in equity for the year ended
March 31, 2019
Adjustment on adoption of Ind AS − − − − − − − 26.26 − − 26.26
115 'Revenue from Contracts with
Customers'
Application money received for − − 749.91 − − − − − − − 749.91
exercised options
Shares issued for exercised options 362,254 1.82 (751.34) 749.52 − − − − − − −
Stock compensation charge − − − − − 514.32 12.95 − − − 527.27
Forfeiture of options − − − − − (38.16) − 38.16 −
Stock compensation related to options − − − 727.85 − (727.85) − − − − −
exercised
Profit for the year − − − − − − − 12,824.70 − − 12,824.70
Final equity dividend − − − − − − − (11,132.87) − − (11,132.87)
Dividend distribution tax − − − − − − − (2,288.39) − − (2,288.39)
Actuarial gain (loss) on gratuity fund − − − − − − − − − 25.94 25.94
Exchange differences on translation of − − − − − − − − (0.11) − (0.11)
foreign operations
Actuarial gain (loss) on gratuity − − − − − − − 25.94 − (25.94) −
Balance as of March 31, 2019 85,779,147 428.90 0.48 15,140.91 10,145.19 1,647.37 41.86 11,389.67 9.36 − 38,803.74
Summary of significant accounting policies [Refer note 2]
As per our report of even date For and on behalf of the Board of Directors of Oracle Financial Services Software Limited

ICAI Firm Registration No. 106655W
S. M. Chitale S Venkatachalam Chaitanya Kamat Makarand Padalkar Onkarnath Banerjee

Partner Chairperson Managing Director Whole-time Director Company Secretary
Membership No. 111383 DIN: 00257819 & Chief Executive Officer & Chief Financial Officer & Compliance Officer
DIN: 00969094 DIN: 02115514 ACS: 8547
May 14, 2020 May 14, 2020
153
Notes annexed to and forming part of financial statements
Note 1: Corporate information

Oracle Financial Services Software Limited (the ‘Company’) was incorporated in India with limited liability on
September 27, 1989. The Company is domiciled in India and has its registered office at Mumbai, Maharashtra,
India. The Company is a subsidiary of Oracle Global (Mauritius) Limited holding 73.42% (March 31, 2019 - 73.50%)
ownership interest in the Company as at March 31, 2020.
The Company is principally engaged in the business of providing information technology solutions to the financial
services industry worldwide. The Company has a suite of banking products, which caters to the transaction processing
and compliance needs of corporate, retail, investment banking, treasury operations and data warehousing.
The standalone financial statements for the year ended March 31, 2020 were approved by the Company’s Board of
Directors and authorized for issue on May 14, 2020.
Note 2: Summary significant accounting policies
2.1 Basis of preparation

These standalone financial statements comprising of balance sheet as at March 31, 2020, statement of profit and
loss, statement of changes in equity and statement of cash flows for the year then ended have been prepared in
The standalone financial statements have been prepared on a historical cost basis, except for the following assets and
liabilities which have been measured at fair value:
- certain financial assets and liabilities, including derivative instruments, that are measured at fair value
- assets held for sale
- defined benefit plan
- share-based payments
Previous year’s comparative numbers in the standalone financial statements have been reclassified wherever
necessary, to conform to current year’s presentation.
2.2 Summary of significant accounting policies

The significant accounting policies adopted by the Company, in respect of the financial statements are set out as below:
(a) Property, plant and equipment, capital work-in-progress and depreciation

Property, plant and equipment and capital work-in-progress
Freehold land is stated at cost. All other items of property, plant and equipment and capital work in progress, are
stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. Such cost includes the cost
of replacing part of the plant and equipment, if the recognition criteria are met. When significant parts of plant and
equipment are required to be replaced at intervals, the Company depreciates them separately based on their specific
useful lives. All other repair and maintenance costs are recognized in the statement of profit and loss as incurred.
The present value of the expected cost for the decommissioning of an asset after its use is included in the cost of the
respective asset if the recognition criteria for a provision are met. All additions during the reported year are considered
at cost.
The Company purchases certain specific-use application software, which is in ready to use condition, for internal use.
It is estimated that such software has a relatively short useful life, usually less than one year. The Company, therefore,
charges to the statement of profit and loss the cost of acquiring such software.

Depreciation
Depreciation is computed as per the straight-line method using the rates arrived at based on the useful lives estimated
by the management. The estimated useful life considered for depreciation of fixed assets is as follows:
Asset description Asset life (in years)

Improvement to leasehold premises Lesser of 7 years or lease term
Buildings 20
Computer equipments 3
Office equipments 2-5
Electricals and other installations 2-7
Furniture and fixtures 2-7
The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each
financial year end and adjusted prospectively, if appropriate.
The management has estimated, supported by an independent assessment by professionals, the useful lives of
buildings as 20 years. These lives are lower than those indicated in schedule II to the Act.
The management has estimated, based on an internal assessment, the useful lives of the following classes of assets.
- The useful lives of servers and networking equipment’s forming part of computer equipment’s are estimated as
3 years. These lives are lower than those indicated in schedule II to the Act.
- The useful lives of furniture and fixtures and electrical and other installations are estimated at 2-7 years. These
lives are lower than those indicated in schedule II to the Act.
(b) Impairment of non-financial assets

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based
on internal / external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its
recoverable amount. The recoverable amount is the greater of the asset’s or cash generating unit’s (‘CGU’) fair value
less cost of disposal, and its value in use. In assessing value in use, the estimated future cash flows are discounted to
their present value using a pre-tax discount rate that reflects current market assessments of the time value of money
and risks specific to assets.
In determining fair value less costs of disposal, recent market transactions are taken into account. If no such transactions
can be identified, an appropriate valuation model is used. These calculations are validated by valuation multiples,
quoted share prices for publicly traded companies or other available fair value indicators. The Company bases its
impairment calculation on detailed budgets and forecast calculations, which are prepared separately for each of the
Company’s CGUs to which the individual assets are allocated.
(c) Foreign currencies

The standalone financial statements are presented in Indian Rupees (‘INR’), which is the functional currency of the
Company. For each branch, the Company determines the functional currency and items included in the financial
statements of each branch are measured using that functional currency.
Foreign currency balances
Transactions in foreign currencies are initially recorded by the Company’s branches at their respective functional
currency using spot rates on the date of the transactions.
Monetary assets and liabilities denominated in foreign currencies are translated into the relevant functional currency
at exchange rates at the reporting date.
Exchange differences arising on settlement or translation of monetary items are recognized in the statement of profit
and loss.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the
exchange rates at the dates of the initial transactions.
The assets and liabilities of foreign branches are translated into INR at the rate of exchange prevailing at the reporting
date and their statements of profit or loss are translated at exchange rates prevailing at the date of the transactions.
For practical reasons, the Company uses an average rate to translate income and expense items, if the average rate
approximates the exchange rates at the date of the transactions. The exchange differences arising on translation for
branch consolidation are recognized in Other Comprehensive Income (‘OCI’).
155
In accordance with Appendix B to Ind AS 21 “Foreign Currency Transactions and Advance Considerations”, the date of
the transaction for the purpose of determining the exchange rate to be used on initial recognition of the related asset
or liability, expense or income, is when the Company has received or paid advance consideration in foreign currency.
(d) Research and development expenses for software products

technical feasibility of project is established, future economic benefits are probable, the Company has an intention
and ability to complete and use or sell the software and the cost can be measured reliably.
Software product development costs incurred subsequent to the achievement of technical feasibility are not material
and are expensed as incurred.
(e) Revenue recognition

Revenue is recognized upon transfer of control of promised products or services to customers in an amount that
reflects the consideration that the Company expects to receive in exchange for those products or services.
In arrangements for software development and related services along with maintenance services, the Company has
applied the guidance as per Ind AS 115, ‘Revenue from Contracts with Customers’, by applying revenue recognition
criteria for each distinct performance obligations. For allocating the transaction price, the Company has measured the
revenue in respect of each performance obligation of a contract at its relative standalone selling price. The price that
is regularly charged for an item when sold separately is the best evidence of its standalone selling price. For software
licenses, the Company is using a residual approach for estimating the standalone selling price of software license as
the pricing is highly variable. For software development and related services, the performance obligations are satisfied
as and when the services are rendered since the customer generally obtains control of the work as it progresses.
The Company accounts for modifications to existing contracts by assessing whether the services added are distinct
and whether the pricing is at the standalone selling price. Services added that are not distinct are accounted for on a
cumulative catch up basis, while those that are distinct are accounted for prospectively, either as a separate contract
if the additional services are priced at the standalone selling price, or as a termination of the existing contract and
creation of a new contract if not priced at the standalone selling price.
The Company presents revenues net of indirect taxes in its standalone statement of profit and loss.
Performance obligation
Revenue from licenses where the customer obtains a “right to use” the licenses is recognized at the time the license is
made available to the customer. Where the license is required to be substantially customized as part of the implementation
service the entire arrangement fee for license and implementation is considered to be a single performance obligation
and the revenue is recognized using the percentage-of-completion method as the implementation is performed.
Product maintenance revenue is recognized rateably over the period of the contract.
Revenue from fixed price contracts, where the performance obligations are satisfied over time and where there is no
uncertainty as to measurement or collectability of consideration, is recognized by reference to the stage of completion.
Stage of completion is measured by reference to labor hours incurred to date as a percentage of total estimated labor
hours for each contract. When the contract outcome cannot be measured reliably, revenue is recognized only to the
extent that the expenses incurred are eligible to be recovered.
Revenue from contracts on time and material basis is recognized as services are performed.
Contract balances
Revenue in excess of billing is classified as contract asset i.e. unbilled revenue while billing in excess of revenue is
classified as contract liability i.e. deferred revenue. Contract assets are classified as unbilled receivables when there is
unconditional right to receive cash, and only passage of time is required, as per contractual terms. Unbilled revenues
are classified as non-financial asset if the contractual right to consideration is dependent on completion of contractual
milestones.
Deferred contract costs are incremental costs of obtaining a contract which are recognized as assets and amortized
over the benefit period.
(f) Income tax

Current income tax
Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the
taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively

enacted, at the reporting date in the countries where the Company and its branches operate and generate taxable
income.
Current income tax relating to items recognized outside statement of profit or loss is recognized either in other
comprehensive income or in equity. Current tax items are recognized in correlation to the underlying transaction
either in other comprehensive income or directly in equity. Management periodically evaluates positions taken in the
tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes
provisions where appropriate, including provision required for uncertain tax treatment.
Current tax assets and current tax liabilities are offset if a legally enforceable right exists to set off current tax assets
against current tax liabilities.
Income tax consequence of dividends are linked more directly to past transactions or events that generates
distributable profit. Therefore, the Company recognizes the income tax consequences of dividends in profit or loss,
other comprehensive income or equity according to where the Company originally recognizes those past transactions
or events.
Deferred tax
Deferred tax is provided on temporary differences between the tax bases of assets and liabilities and their carrying
amounts for financial reporting purposes at the reporting date.
Deferred tax liabilities are recognized for all taxable temporary differences, except:
- When the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a transaction
that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor
taxable profit or loss.
- In respect of taxable temporary differences associated with investments in subsidiaries and associates, when
the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary
differences will not reverse in the foreseeable future.
Deferred tax assets are recognized for all deductible temporary differences, the carry forward of unused tax credits
and any unused tax losses. Deferred tax assets are recognized to the extent that it is probable that taxable profit will be
available against which the deductible temporary differences, and the carry forward of unused tax credits and unused
tax losses can be utilized, except:
- When the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of
an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects
neither the accounting profit nor taxable profit or loss.
- In respect of deductible temporary differences associated with investments in subsidiaries, and associates,
deferred tax assets are recognized only to the extent that it is probable that the temporary differences will reverse
in the foreseeable future and taxable profit will be available against which the temporary differences can be
utilized.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no
longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized.
Unrecognized deferred tax assets are re-assessed at each reporting date and are recognized to the extent that it has
become probable that future taxable profits will allow the deferred tax asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset
is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted
at the reporting date.
Deferred tax relating to items recognized outside profit or loss is recognized either in other comprehensive income or
in equity as applicable. Deferred tax items are recognized in correlation to the underlying transaction either in other
comprehensive income or directly in equity.
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets
against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.
Appendix C to Ind AS 12 Uncertainty over Income Tax Treatments:
The interpretation in Appendix C to Ind AS 12 Uncertainty over Income Tax Treatments addresses the accounting
for income taxes when tax treatments involve uncertainty that affects the application of Ind AS 12. It does not apply
to taxes or levies outside the scope of Ind AS 12, nor does it specifically include requirements relating to interest and
penalties associated with uncertain tax treatments. The interpretation specifically addresses the following:
- Whether an entity considers uncertain tax treatments separately
157
- The assumptions an entity makes about the examination of tax treatments by taxation authorities
- How an entity determines taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates
- How an entity considers changes in facts and circumstances
The Company determines whether to consider each uncertain tax treatment separately or together with one or
more other uncertain tax treatments based on the approach that better predicts the resolution of the uncertainty. In
determining the approach that better predicts the resolution of the uncertainty, the Company has considered, (a) how
it prepares its income tax filings and supports tax treatments; or (b) how the Company expects the taxation authority
to make its examination and resolve issues that might arise from that examination.
This interpretation is effective from April 1, 2019. The Company has evaluated the requirements of the amendment
and concluded that there is no impact on the retained earnings of the Company as at April 1, 2019 as a result of this
interpretation. For impact of uncertain tax positions for the year ended March 31, 2020, refer note 16.
(g) Investment properties

Investment properties are measured initially and subsequently at cost. Though the Company measures investment
property using cost based measurement, the fair value of investment property is disclosed annually in the notes which
form an integral part of the financial statements. Fair values are determined based on an evaluation performed by an
accredited external independent valuer applying a valuation technique as per the international norms and standards.
Investment properties are derecognized either when they have been disposed off or when they are permanently
withdrawn from use and no future economic benefit is expected from such disposal. The difference between the
net sale proceeds and the carrying amount of asset is recognized in statement of profit and loss in the period of
derecognition.
(h) Non-current assets held for sale

The Company classifies non-current assets as held for sale if their carrying amounts shall be recovered principally
through a sale rather than through continuing use. Sale transactions shall include exchanges of non-current assets for
other non-current assets when the exchange has commercial substance.
Non-current assets held for sale are measured at the lower of their carrying amount and the fair value less costs to sell.
Assets and liabilities classified as held for sale are presented separately in the balance sheet.
Property, plant and equipment once classified as held for sale are not depreciated.
All other notes to the standalone financial statements primarily include amounts for continuing operations, unless
otherwise mentioned.
(i) Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. The fair value measurement is based on the presumption that
the transaction to sell the asset or transfer the liability takes place either:
- In the principal market for the asset or liability, or
- In the absence of a principal market, in the most advantageous market for the asset or liability
The principal or the most advantageous market must be accessible by the Company.
The fair value of an asset or a liability is measured using the assumptions that market participants would use when
pricing the asset or liability, assuming that market participants act in their economic best interest. A fair value
measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits
by using the asset in its highest and best use or by selling it to another market participant that would use the asset in
its highest and best use.
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are
available to measure fair value so as to maximize the use of relevant observable inputs and minimize the use of
unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the standalone financial statements are
categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to
the fair value measurement as a whole:
- Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities
directly or indirectly observable

unobservable
For assets and liabilities that are recognized in the standalone financial statements on a recurring basis, the Company
determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization (based on
the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.
At the reporting date, the Company analyzes the movements in the values of assets and liabilities which are required
to be re-measured or re-assessed as per the accounting policies. For this analysis, the Company verifies the major
inputs applied in the latest valuation by agreeing the information in the valuation computation to contracts and other
relevant documents.
The Company also compares the change in the fair value of each asset and liability with relevant external sources to
determine whether the change is reasonable.
For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of
the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.
(j) Financial instruments - initial recognition and subsequent measurement

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity
instrument of another entity. The Company recognizes a financial asset or a liability in its balance sheet only when the
entity becomes party to the contractual provisions of the instrument.
Financial assets
Financial assets are classified, at initial recognition, as financial assets measured at amortized cost, fair value through
other comprehensive income or fair value through statement of profit or loss as appropriate. All financial assets are
recognized initially at fair value plus, in the case of financial assets not recorded at fair value through statement of
profit or loss, transaction costs that are attributable to the acquisition of the financial asset. Investments in subsidiaries
and associate are carried at cost as per Ind AS 27 - Separate Financial Statements.
For purposes of subsequent measurement, financial assets of the Company are classified in three categories:
- Debt instruments measured at amortized cost
- Debt instruments at fair value through other comprehensive income (‘OCI’)
- Debt instruments, derivatives and equity instruments at fair value through statement of profit or loss
Debt instruments measured at amortized cost
This category is the most relevant to the Company. Debt instruments are measured at amortized cost if the asset is held
within a business model whose objective is to hold financial assets in order to collect contractual cash flows and the
contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal
and interest on the principal amount outstanding. These financial assets are amortized using the effective interest
rate (EIR) method, less impairment. Amortized cost is calculated by taking into account any discount or premium on
acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included in finance income in
the statement of profit and loss. The losses arising from impairment are recognized in the statement of profit and loss.
Debt instruments at fair value through OCI
Debt instruments are measured at fair value through other comprehensive income if the asset is held within a
business model whose objective is achieved by both collecting contractual cash flows and selling financial assets
and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding. The Company has not designated any financial assets at
fair value through OCI.
Debt instruments at fair value through profit or loss
Debt instruments at fair value through statement of profit or loss include assets held for trading and financial
assets designated upon initial recognition at fair value through profit or loss. Financial assets are classified as held
for trading if they are acquired for the purpose of selling or repurchasing in the near term. Derivatives, including
separated embedded derivatives, are also classified as held for trading unless they are designated as effective hedging
instruments as defined by Ind AS 109 – Financial Instruments. Debt instruments at fair value through profit or loss are
carried in the statement of financial position at fair value with net changes in fair value recognized in the statement of
profit and loss.
159
Derecognition
A financial asset is derecognized i.e. removed from the Company’s statement of financial position when:
- The contractual rights to the cash flows from the financial asset expire or
- The Company has transferred its contractual rights to receive cash flows from the asset or has assumed an
obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through’
arrangement; and either (a) the Company has transferred substantially all the risks and rewards of the asset, or
(b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has
transferred control of the asset.
When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass-through
arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither
transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the
Company continues to recognize the transferred asset to the extent of the Company’s continuing involvement. In
that case, the Company also recognizes an associated liability. The transferred asset and the associated liability are
measured on a basis that reflects the rights and obligations that the Company has retained.
Impairment of financial assets
The Company applies expected credit loss (‘ECL’) model for measurement and recognition of impairment loss on
the financial assets and credit risk exposure. For trade receivables the Company follows ‘simplified approach’ for
recognition of impairment loss allowance. The application of simplified approach does not require the Company to
track changes in credit risk. Rather, it recognizes impairment loss allowance based on lifetime ECLs at each reporting
date, right from its initial recognition.
For recognition of impairment loss on other financial assets and risk exposure, the Company determines that whether
there has been a significant increase in the credit risk since initial recognition. If credit risk has not increased significantly,
12-month ECL is used to provide for impairment loss. However, if credit risk has increased significantly, lifetime ECL
is used. If, in a subsequent period, credit quality of the instrument improves such that there is no longer a significant
increase in credit risk since initial recognition, then the entity reverts to recognizing impairment loss allowance based
on 12-month ECL.
Lifetime ECL are the expected credit losses resulting from all possible default events over the expected life of a financial
instrument. The 12-month ECL is a portion of the lifetime ECL which results from default events that are possible
within 12 months after the reporting date.
The Company uses a provision matrix to determine impairment loss allowance on portfolio of its trade receivables.
The provision matrix is based on its historically observed default rates over the expected life of the trade receivables
and is adjusted for forward-looking estimates. Further, the trade receivables have customer concentration across the
globe and therefore the Company also considers the socio-economic conditions of the regions where the customers
are located.
On that basis, the Company estimates the following provision matrix at the reporting date:
Ageing 0 - 30 31-60 61 - 90 91 - 180 181-360 More than

days days days days days 360 days
Africa 3.38% 14.68% 1.49% 7.89% 37.03% 48.65%
Asia Pacific 0.01% 0.27% 0.05% 1.29% 4.61% 27.29%
Europe & Middle East 0.01% 0.04% 0.06% 2.10% 2.10% 35.01%
United States of America & Latin America 0.07% 0.02% 0.11% 0.80% 13.41% 66.29%
At every reporting date, the historical observed default rates are updated and changes in the forward-looking estimates
are analyzed.
Impairment of investments
The carrying amounts of investments are reviewed at each balance sheet date if there is any indication of impairment
based on internal / external factors. An impairment loss is recognized wherever the carrying amount of an investment
exceeds its recoverable amount.
Interest income
Interest income is recognized using the effective interest method.

Dividend income
Dividends are recognized in statement of profit and loss only when the right to receive payment is established, it
is probable that the economic benefits associated with the dividend will flow to the Company, and the amount of
dividend can be measured reliably.
Financial liabilities are classified, at initial recognition, as financial liabilities at amortized cost or financial liabilities at fair
value through profit or loss, as appropriate. All financial liabilities are recognized initially at fair value and, in the case of
loans and borrowings and payables, net of directly attributable transaction costs.
The Company’s financial liabilities include trade payables, accrued expenses, accrued compensation to employees,
advance from customers, amounts due to subsidiaries, dividend and dividend tax payable along with unpaid dividends.
The Company measures all financial liabilities at amortized cost except for financial liabilities held for trading and
financial liabilities designated upon initial recognition as at fair value through profit or loss. Amortized cost is calculated
by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR.
Financial liabilities held for trading are measured at fair value through profit or loss. The Company has not designated
any financial liability as at fair value through profit or loss.
Derecognition
A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. When
an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms
of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition
of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is
recognized in the statement of profit and loss.
Embedded derivatives
An embedded derivative is a component of a hybrid (combined) instrument that also includes a non-derivative
host contract – with the effect that some of the cash flows of the combined instrument vary in a way similar to a
standalone derivative. An embedded derivative causes some or all of the cash flows that otherwise would be required
by the contract to be modified according to a specified interest rate, financial instrument price, commodity price,
foreign exchange rate, index of prices or rates, credit rating or credit index, or other variable, provided in the case of
a nonfinancial variable that the variable is not specific to a party to the contract. Reassessment only occurs if there is
either a change in the terms of the contract that significantly modifies the cash flows that would otherwise be required
or a reclassification of a financial asset out of the fair value through profit or loss.
If the hybrid contract contains a host that is a financial asset within the scope of Ind AS 109 – Financial Instruments,
the Company does not separate embedded derivatives. Rather, it applies the classification requirements contained
in Ind AS 109 to the entire hybrid contract. Derivatives embedded in all other host contracts are accounted for as
separate derivatives and recorded at fair value if their economic characteristics and risks are not closely related to
those of the host contracts and the host contracts are not held for trading or designated at fair value though profit or
loss. These embedded derivatives are measured at fair value with changes in fair value recognized in profit or loss,
unless designated as effective hedging instruments.
(k) Derivative financial instruments and hedge accounting

Initial recognition and subsequent measurement
The Company uses forward currency contracts to hedge its foreign currency risks. Such derivative financial instruments
are initially recognized at fair value on the date on which a derivative contract is entered into and are subsequently
remeasured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial
liabilities when the fair value is negative. Any gains or losses arising from changes in the fair value of derivatives are
taken directly to statement of profit and loss.
For the purpose of hedge accounting, hedges are classified as:
- Fair value hedges when hedging the exposure to changes in the fair value of a recognized asset or liability or an
unrecognized firm commitment
161
- Cash flow hedges when hedging the exposure to variability in cash flows that is either attributable to a particular
risk associated with a recognized asset or liability or a highly probable forecast transaction or the foreign currency
risk in an unrecognized firm commitment
- Hedges of a net investment in a foreign operation
The Company enters into foreign currency forward contracts that is used to hedge risk of exposure of changes in
the fair value of trade receivables on account of foreign currency rate movement. These derivative contracts are not
designated as hedges and accounted for at fair value through statement of profit or loss and are included in other
income, net.
(l) Leases
Company as a Lessee
The determination of whether an arrangement is (or contains) a lease is based on the substance of the arrangement
at the inception of the lease. The arrangement is, or contains, a lease if fulfillment of the arrangement is dependent on
the use of a specific asset or assets and the arrangement conveys a right to use the asset or assets, even if that right
is not explicitly specified in an arrangement.
The Company recognizes right-of-use asset and a corresponding lease liability for all lease arrangements in which
the Company is a lessee, except for a short term lease of 12 months or less and leases of low-value assets. For short
term lease and low-value asset arrangements, the Company recognizes the lease payments as an operating expense
on straight-line basis over the lease term.
Certain lease arrangements include the options to extend or terminate the lease before the end of the lease
arrangement. Right-of-use assets and lease liabilities are measured according to such options when it is reasonably
certain that the Company will exercise these options.
The right-of-use asset are recognized at the inception of the lease arrangement at the amount of the initial measurement
of lease liability adjusted for any lease payments made at or before the commencement date of lease arrangement
reduced by any lease incentives received, added by initial direct costs incurred and an estimate of costs to be incurred
by the Company in dismantling and removing the underlying asset or restoring the underlying asset or site on which it
is located. The right-of-use assets are depreciated using the straight-line method from the commencement date over
the shorter of lease term or useful life of right-of-use asset. Estimated useful life of right-of-use assets is determined
on the basis of useful life of property, plant and equipment. Right-of-use assets are tested for impairment whenever
there is an indication that their carrying value may not be recoverable. Impairment loss, if any is recognized in the
statement of profit and loss account.
The lease liability is measured at amortized cost, at the present value of the future lease payments. The lease
payments are discounted using the interest rate implicit in the lease arrangement or, if not readily determinable,
at the incremental borrowing rate in the country of domicile of such leases. Lease liabilities are remeasured with
corresponding adjustments to right-of-use assets to reflect any reassessment or lease modifications.
Company as a Lessor
Leases for which the Company is a lessor is classified as finance or operating lease. If the terms of the lease arrangement
transfers substantially all the risks and rewards of ownership to the lessee, such lease arrangement is classified as
finance lease. All other leases are classified as operating leases.
In case of sub-lease, the Company recognizes investment in sub-lease separately in the financial statements. The
sub-lease is classified as a finance or operating lease by reference to the right-of-use asset arising from such lease
arrangement. For operating leases, rental income is recognized on a straight-line basis over the term of the lease
arrangement.
Transition
The Company has adopted Ind AS 116 ‘Leases’ with effect from April 1, 2019 using the modified retrospective
method. Cumulative effect of initially applying the standard has been recognized on the date of initial application
and hence the Company has not restated comparative information. The Company has recorded Lease liability at the
present value of the future lease payments discounted at the incremental borrowing rate and the right-of-use asset
at an amount equal to the lease liability, adjusted by the amount of prepaid or accrued lease payments relating to that
lease recognized in the balance sheet immediately before the date of initial application.
The Company has selected practical expedient for the following:
a) Not recognizing right-of-use asset and lease liability for leases having a lease term of 12 months or less as on
date of initial application and leases of low-value assets. The Company recognizes the lease payments associated
with such leases as an expense over the lease term.

b) Excluded the initial direct cost from the measurement of the right-of-use asset at the date of initial application.
c) Ind AS 116 is applied only to those contracts that were previously identified as leases under Ind AS 17.
Accordingly, the Company has recognized right-of-use asset of ₹ 916.21 million and a lease liability of ₹ 806.68
million in the financial statements on the date of initial application. There is no impact on the retained earnings. Due
to adoption of Ind AS 116, the nature of expenses have changed from rent in previous periods to depreciation cost on
right-of-use asset and finance cost for interest on lease liability. During the year ended March 31, 2020, the Company
has recognized depreciation on right-of-use asset ₹ 293.11 million along with interest on lease liability of ₹ 63.70
million respectively. The effect of this standard is not significant on the profit for the year of the Company. Further as
per Ind AS 116, the principal portion of lease payments and interest on lease liability has been disclosed under the
cash outflow from financing activities. Operating lease payments as per Ind AS 17 – Leases were disclosed under the
cash outflow from operating activities.
The weighted average incremental borrowing rate applied to lease liabilities recognized in the balance sheet at the
date of initial application is 9.08 % with maturity between 2021 to 2025.
The difference between the future minimum lease commitments under Ind AS 17 – Leases reported as of
March 31, 2019 and the value of lease liability recorded as on April 1, 2019 on adoption of Ind AS 116 – Leases is
primarily on account of discounting of the lease liability to its present value in accordance with Ind AS 116 and the
exclusion of commitments for leases to which the Company has chosen to apply the practical expedient as per the
standard.
(m) Share based payments

Selected employees of the Company also receive remuneration in the form of share-based payments under stock
option program of the Company.
The cost of equity-settled transactions is determined by the fair value at the date when the grant is made using an
appropriate valuation model. The cost is recognized in employee benefit expenses, together with a corresponding
increase in ‘employee stock options outstanding’ in equity, over the period in which the performance and/or service
conditions are fulfilled. The cumulative expense recognized for equity-settled transactions at each reporting date until
the vesting date reflects the extent to which the vesting period has expired and the Company’s best estimate of the
number of equity instruments that will ultimately vest.
The statement of profit and loss, expense or credit recognized in employee benefit expense represents the movement
in cumulative expense recognized as at the beginning and end of the year.
Oracle Corporation, The Ultimate Holding Company of Oracle Financial Services Software Limited has extended its
stock option program to selected employees of OFSS’s overseas subsidiaries and branches. The cost of equity-
settled transactions is determined by the fair value at the date when the grant is made using an appropriate valuation
model. The cost is recognized in employee benefit expenses over the period in which the performance and/or service
conditions are fulfilled with a corresponding impact under statement of changes in equity as Contribution from
Ultimate Holding Company.
Oracle Corporation has also extended its Employee Stock Purchase Plan (ESPP) to employees of OFSS. Under the plan,
the employees are eligible to purchase the shares of Oracle Corporation at discounted price. The discount amount on
the shares purchased during the year by employees is treated as Contribution from Ultimate Holding Company.
(n) Provisions
Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past
event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation
and a reliable estimate can be made of the amount of the obligation. The expense relating to a provision is presented
in the statement of profit and loss net of any reimbursement.
If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects,
when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the
passage of time is recognized as a finance cost.
(o) Retirement and other employee benefits

Retirement benefit in the form of provident fund is a defined contribution scheme. The Company has no obligation,
other than the contribution payable to the provident fund. The Company recognizes contribution payable to the
provident fund scheme as an expense, when an employee renders the related service. If the contribution payable to the
scheme for service received before the balance sheet date exceeds the contribution already paid, the deficit payable
to the scheme is recognized as a liability after deducting the contribution already paid. If the contribution already
163
paid exceeds the contribution due for services received before the balance sheet date, then excess is recognized as
an asset to the extent that the pre-payment will lead to, for example, a reduction in future payment or a cash refund.
Certain eligible employees of the Company on Indian payroll are entitled to Superannuation, a defined contribution
plan. The Company makes monthly contributions until retirement or resignation of the employee which are recognized
as an expense when incurred. The Company has no further obligations beyond its monthly contributions, the corpus
of which is invested with the Life Insurance Corporation of India.
Compensated absences which are expected to occur within twelve months after the end of the period in which
employee renders the related services are recognized as undiscounted liability at the balance sheet date. The expected
cost of compensated absences which are not expected to occur within twelve months after the end of the period in
which employee renders related services are recognized at the present value based on actuarial valuation performed
by an independent actuary at each balance sheet date using projected unit credit method.
The Company operates a defined benefit gratuity plan in India, under which the Company makes contributions to a
fund administered and managed by the Life Insurance Corporation of India (‘LIC’) to fund the gratuity liability. Under
this scheme, the obligation to pay gratuity remains with the Company, although LIC administers the scheme.
The cost of providing benefits under the defined benefit plan is determined using the projected unit credit method.
Remeasurements, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included
in net interest on the net defined benefit liability and the return on plan assets (excluding amounts included in net
interest on the net defined benefit liability), are recognized immediately in the balance sheet with a corresponding
debit or credit to retained earnings through OCI in the period in which they occur. Remeasurements are not reclassified
to profit or loss in subsequent periods.
Past service costs are recognized in the statement of profit and loss on the earlier of:
- The date of the plan amendment or curtailment, and
- The date that the Company recognizes related restructuring costs.
Net interest is calculated by applying the discount rate to the net defined benefit liability or asset. The Company
recognizes the following changes in the net defined benefit obligation as an expense in the statement of profit and
loss:
- Service costs comprising current service costs, past-service costs, gains and losses on curtailments and non-
routine settlements; and
- Net interest expense or income.
(p) Cash dividend to equity shareholders of the company

The Company recognizes a liability to make cash or noncash distributions to equity shareholders when the distribution
is authorized and the distribution is no longer at the discretion of the Company. As per the Act, a distribution of
interim dividend is authorized when it is approved by the Board of Directors and final dividend is authorized when it is
approved by the shareholders of the Company. A corresponding amount is recognized directly in other equity.
(q) Earnings per share

The earnings considered in ascertaining the Company’s earnings per share comprise the net profit after tax. The
number of shares used in computing basic earnings per share is the weighted average number of shares outstanding
during the year. The number of shares used in computing diluted earnings per share comprises the weighted average
number of shares considered for deriving basic earnings per share, and also the weighted average number of shares,
if any which would have been issued on the conversion of all dilutive potential equity shares. The weighted average
number of shares and potentially dilutive equity shares are adjusted for the bonus shares and sub-division of shares.
For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity
shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of
all dilutive potential equity shares.
(r) Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and short-term investments with an original maturity of three
months or less.

Note 3: Property, plant and equipment
carrying
value
As at Additions Sale/ Translation As at As at Additions Sale/ Translation As at As at
April 01, deletions gain (loss) March 31, April 01, deletions (gain) loss March 31, March 31,
2019 2020 2019 2020 2020
Freehold land 436.31 − − − 436.31 − − − − − 436.31
Improvement to leasehold premises 260.30 − − − 260.30 248.50 6.66 − − 255.16 5.14
Buildings 2,089.95 − − − 2,089.95 1,063.96 104.06 − − 1,168.02 921.93
Furniture and fixtures 955.33 73.48 9.76 0.36 1,019.41 767.56 51.57 9.76 0.04 809.41 210.00
Total 7,452.68 366.48 155.24 1.71 7,665.63 5,067.01 538.61 155.24 1.31 5,451.69 2,213.94
2,214.10

carrying
value
As at Additions Sale/ Translation As at As at Sale/ Translation As at As at
April 01, deletions gain (loss) March 31, April 01, Additions deletions (gain) loss March 31, March 31,
2018 2019 2018 2019 2019
Freehold land 436.31 − − − 436.31 − − − − − 436.31
Improvement to leasehold premises 269.04 − 8.74 − 260.30 224.17 33.06 8.73 − 248.50 11.80
Buildings 2,077.87 14.48 2.40 − 2,089.95 961.03 104.11 1.18 − 1,063.96 1,025.99
Furniture and fixtures 875.64 91.21 11.62 0.10 955.33 716.40 62.68 11.62 0.10 767.56 187.77
Total 6,775.79 779.73 103.83 0.99 7,452.68 4,665.98 501.98 101.69 0.74 5,067.01 2,385.67
2,389.72
165
Note 4: Right-of-use asset
carrying
value
As at Adjustment Additions Sale/ Translation As at As at Additions Sale/ Translation As at As at
April 01, on adoption deletions gain (loss) March 31, April 01, deletions (gain) loss March 31, March 31,
2019 of Ind AS 2020 2019 2020 2020
116 'Leases'
Right-of-use asset − 916.21 − 9.05 11.00 918.16 − 293.11 2.41 4.89 295.59 622.57

Total − 916.21 − 9.05 11.00 918.16 − 293.11 2.41 4.89 295.59 622.57
Note 5: Investment property
carrying
value
2019 2020 2019 2020 2020
Freehold land 102.00 − − − 102.00 − − − − − 102.00
Total 102.00 − − − 102.00 − − − − − 102.00

carrying
value
2018 Translation 2019 2018 2019 2019
gain (loss)
Freehold land 102.00 − − − 102.00 − − − − − 102.00
Total 102.00 − − − 102.00 − − − − − 102.00
The Company's investment property consists of a portion of land at Pune, India.
The fair value of the investment property as at March 31, 2020 and March 31, 2019 is based on valuations performed by Rakesh Narula & Co; an accredited independent valuer.
Rakesh Narula & Co. is one of the senior most and reputed valuer in the field of asset valuation. Rakesh Narula & Co. has been carrying out valuation as per the international norms
and standards. The fair value of the above investment property as at March 31, 2020 and March 31, 2019 is ₹ 204.30 million and ₹ 245.00 million respectively.
The direct operating expenses incurred in relation to investment property are ₹ 4.13 million for the financial year ended March 31, 2020 as well as March 31, 2019. These
expenses are included in repairs and maintenance under note 21: other operating expenses.
167
The Company has no restrictions on the realizability of its investment properties and has no contractual obligations to purchase, construct or develop investment properties or for
repairs, maintenance and enhancements. Fair value hierarchy disclosures for investment properties have been provided in note 24 on fair value measurement.
Reconciliation of fair value: (Amounts in ₹ million)

Fair Value of Investment Property as on April 1, 2018 237.50
Adjustment towards Fair Values for the financial year ended March 31, 2019 7.50
Adjustment towards Fair Values for the financial year ended March 31, 2020 (40.70)

Description of valuation techniques used and key inputs to valuation on investment properties (Amounts in ₹)
Investment property Valuation technique Significant unobservable inputs Range (weighted average)
March 31, 2020 March 31, 2019
Freehold land Market approach Estimated market rate per sq. mt. of freehold land ₹ 17,045 to ₹ 23,333 ₹ 15,909 to ₹ 23,620
(Sale Comparison Method) Negotiation, discount, location and physical adjustments -20% to 0% -15% to 0%
Final adjusted price per sq. mt. ₹ 15,238 to ₹ 18,667 ₹ 15,909 to ₹ 17,007
The fair market value of the portion of land is computed using the market approach (Sale Comparison Method). The prevalent market rates of comparable property in the vicinity
are considered to estimate the market value of the investment property. To estimate the market rate of land, a local enquiry as well as a market survey has been conducted with
property dealers, brokers, owners of similar property in the surrounding areas and the rates from Joint Sub-Registrars' Office for actual transactions and the ready reckoner rates
have also been considered. Weightages to additional factors like shape, size, location, frontage, access to main road and the demand and supply of similar properties have been
considered while computing the market value of the investment property.
Note 6: Investments in subsidiaries (unquoted) (at cost, unless otherwise stated)
March 31, March 31,
2020 2019
(i) In wholly owned subsidiaries
Oracle (OFSS) ASP Private Limited
5,170,000 (March 31, 2019 - 5,170,000) equity shares of ₹ 10 each, fully paid-up 46.10 46.10
Provision for diminution in value of investment (5.40) (5.40)
40.70 40.70
Oracle Financial Services Software B.V.

140,000 (March 31, 2019 - 140,000) equity shares of EUR 100 each, fully paid-up 776.31 776.31
Equity contribution for stock options / OSUs 33.06 31.91
809.37 808.22
Oracle Financial Services Software Pte. Ltd.

250,000 (March 31, 2019 - 250,000) equity shares of SGD 1 each, fully paid-up 6.63 6.63
131.49 128.63
Oracle Financial Services Software America, Inc.

1 (March 31, 2019 - 1) equity share of USD 0.01 each, fully paid-up 3,452.26 3,452.26
100 (March 31, 2019 - 100) Series A Convertible Participating Preference Shares 2,839.49 2,839.49
of USD 0.01 each, fully paid-up
Fair valuation of loan 52.88 52.88
6,415.69 6,414.20

100% (March 31, 2019 - 100%) subscription to the registered capital 45.51 45.51
46.04 46.09
Oracle Financial Services Software Chile Limitada

100% (March 31, 2019 - 100%) subscription to the registered capital 70.49 70.49
80.76 80.40
ISP Internet Mauritius Company

30,000 (March 31, 2019 - 30,000) equity shares of no par value 192.12 192.12
Fair valuation of loan 113.70 113.70
Provision for diminution in value of investment and fair valuation of loan (209.47) (209.47)
124.28 119.04

1,300,000 (March 31, 2019 - 1,300,000) equity shares of ₹ 10 each, fully paid-up 13.00 13.00
Mantas India Private Limited

1,499,940 (March 31, 2019 - Nil) equity shares of ₹ 10 each, fully paid-up 20.28 –
Aggregate amount of unquoted investments 7,681.61 7,650.28

Aggregate amount of impairment of unquoted investments 214.87 214.87
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Note 7: Financial assets
March 31, 2020 March 31, 2019
Non-current
Other financial assets at fair value through profit or loss
Investment in Sarvatra Technologies Private Limited (unquoted) *
242,240 (March 31, 2019 - 242,240) equity shares of ₹ 10 each, fully − −
paid-up
1,376.59 622.17
1,376.59 622.17
Current
Foreign exchange forward contract, net ** − 20.37
− 20.37
Amount receivable from subsidiaries 13.72 11.05
1,656.02 2,216.96
1,656.02 2,237.33
* The Company had made an investment of ₹ 45 million and the same has been fair valued as at the balance sheet date.
** The Company entered into foreign exchange forward contracts with the intention of reducing the foreign exchange risk of trade
receivables; these contracts are not designated in hedge relationships and are measured at fair value through profit or loss.
Breakup of financial assets measured at amortized cost:

March 31, 2020 March 31, 2019
Amount receivable from subsidiaries 13.72 11.05
Trade receivables [note 8] 4,154.31 4,866.30
Cash and bank balances [note 9] 32,539.21 17,064.75
39,726.13 24,770.18

Note 8: Trade receivables
March 31, 2020 March 31, 2019
Secured, considered good − −
Unsecured, considered good 4,423.35 5,156.26
Credit impaired 23.73 124.97
4,447.08 5,281.23
Unsecured, considered good (269.04) (289.96)
Credit impaired (23.73) (124.97)
(292.77) (414.93)
4,154.31 4,866.30
No trade receivables are due from directors or other key managerial personnel of the Company either severally or
jointly with any other person. Trade receivables are non-interest bearing and are generally on terms of 30 to 90 days.
Note 9: Cash and bank balances

March 31, 2020 March 31, 2019
(a) Cash and cash equivalents
In current accounts 1,693.25 910.88
In unclaimed dividend accounts 80.55 116.63
1,993.84 2,713.65
(b) Other bank balances
In deposit accounts with original maturity of more than 3 months but 30,543.75 14,349.51
less than 12 months
In margin money deposit accounts 1.62 1.59
30,545.37 14,351.10
32,539.21 17,064.75
Cash at banks earns interest at floating rates based on the daily bank deposit rates and the daily balances. Time deposits
are placed for varying periods ranging from 7 days to 364 days, depending on the immediate cash requirements of
the Company. The time deposits earn interest at the respective deposit rates.
Changes in liabilities are arising from financing activities is primarily due to repayment of lease liabilities [Refer note
28 - Leases].
Note 10: Other assets

March 31, 2020 March 31, 2019
Non-current
345.25 661.30
Current
Unbilled revenue 1,165.28 702.08
1,424.00 1,218.72
171
Note 11: Equity share capital
March 31, 2020 March 31, 2019
Authorized:
Issued, subscribed and fully paid-up:
(a) The Company has only one class of equity shares having a par value of ₹ 5 per share. Each holder of equity
shares is entitled to one vote per share.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining
assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the
number of equity shares held by the shareholders.
(b) Details of shareholders holding more than 5% equity shares in the Company
Name and relationship of shareholder: March 31, 2020 March 31, 2019
Oracle Global (Mauritius) Limited, holding company
Number of equity shares 63,051,197 63,051,197
% of equity shares 73.42% 73.50%
As per records of the Company, including its register of shareholders / members and other declarations received
from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial
ownerships of equity shares.
(c) Reconciliation of equity outstanding at the beginning and at the end of the year
No. of equity Amounts in ₹

shares million
Outstanding as at April 1, 2018 85,416,893 427.08
(d) Refer note 29 (b) for details of shares reserved for issue under the employee stock option plan (ESOP) of the
Company.
Note 12: Other equity

March 31, 2020 March 31, 2019
Share application money pending allotment #
0.00 0.48
Securities premium 15,500.49 15,140.91
General reserve 10,145.19 10,145.19
Employee stock options outstanding 1,726.79 1,647.37
Contribution from Ultimate Holding Company 60.27 41.86
Retained earnings 27,175.94 11,389.67
Other comprehensive income 44.93 9.36
54,653.61 38,374.84
#
March 31, 2020 - represents amount less than ₹ 0.01 million.

Share application money pending allotment
Share application money pending allotment represents the amount received on exercise of stock options by the
eligible employees under the prevailing ESOP schemes of the Company, on which allotment is yet to be made.
Note: Share application money pending allotment for the year ended March 31, 2020 represents the money received
from employees of the Company towards exercise of 81 OFSS Stock Units (“OSUs”) at the exercise price of ₹ 5 under
Oracle Financial Services Software Limited Stock Plan 2014 (“OFSS Stock Plan 2014”). Each OSUs will entitle one
equity share of ₹ 5 each of the Company.
employees of the Company towards exercise of 250 stock options at the exercise price of ₹ 1,930 under Employee
Stock Option Plan 2011 Scheme (“Scheme 2011”) and 299 OFSS Stock Units (“OSUs”) at the exercise price of ₹ 5
under Oracle Financial Services Software Limited Stock Plan 2014 (“OFSS Stock Plan 2014”). Each stock option and
OSUs will entitle one equity share of ₹ 5 each of the Company.
Securities premium
Securities premium represents amount received in excess of face value on issue of shares by the Company. It also
includes transfer of stock compensation related to options exercised from employee stock options outstanding (other
equity). The securities premium will be utilized in accordance with the provisions of the Act.
General reserve
General reserve represents the amount of profits appropriated by the Company.
Employee stock options outstanding
Selected employees of the Company also receive remuneration in the form of share-based payments under stock
option program of the Company. Employee stock options outstanding represents the fair value of equity-settled
transactions, calculated at the date when the grant is made using an appropriate valuation model and recognized over
the period in which the performance and/or service conditions are fulfilled.
Contribution from Ultimate Holding Company
Oracle Corporation, the Ultimate Holding Company of Oracle Financial Services Software Limited has extended its
stock option program to selected employees of the Company’s overseas branches. Contribution from Ultimate Holding
Company represents the fair value of equity-settled transactions; calculated at the date when the grant is made using
an appropriate valuation model and recognized over the period in which the performance and/or service conditions
are fulfilled.
Oracle Corporation has also extended its Employee Stock Purchase Plan (ESPP) to employees of the Company. Under
the plan, the employees are eligible to purchase the shares of Oracle Corporation at discounted price. The discount
amount on the shares purchased during the year by employees is treated as Contribution from Ultimate Holding
Company.
Retained earnings
Retained earnings represents the undistributed earnings, net of amounts transferred to general reserve; if any.
Note: The Board of Directors have declared an interim dividend on May 8, 2020 of ₹ 180 per equity share for the year
ended March 31, 2020. This would result in a cash outflow of approximately ₹ 15,458.97 million.
Other comprehensive income represents the exchange differences arising on translation of foreign branches and the
remeasurements of the defined benefit gratuity plan; comprising of actuarial gains and losses on its net liabilities /
assets.
173
Note 13: Financial liabilities
March 31, 2020 March 31, 2019
(a) Trade Payables measured at amortized cost
Current
- Payable to micro and small enterprises* 2.58 3.04
- Payable to others 263.00 420.05
265.58 423.09
(b) Other financial liabilities
Current
Foreign exchange forward contract, net** 62.44 −
62.44 −
Other financial liabilities measured at amortized cost
Amount due to subsidiaries 245.96 275.62
Accrued expenses 768.06 814.65
Accrued compensation to employees 384.27 504.27
Capital creditors 35.82 144.70
Unpaid dividends*** 80.55 116.63
1,514.66 1,855.87
1,577.10 1,855.87
*The identification of Micro and Small Enterprises is based on Management's knowledge of their status.
Dues to micro and small enterprises - As per Micro, Small and Medium Enterprises Development Act, 2006
('MSMED' Act)
March 31, 2020 March 31, 2019
- Principal amount remaining unpaid to any supplier as at the end of the 2.58 3.04
year.
- Amount of interest due remaining unpaid to any supplier as at the end − −
of the year.
- Amount of interest paid under MSMED Act, 2006 along with the − −
amounts of the payment made to the supplier beyond the appointed
day during the year.
- Amount of interest due and payable for the period of delay in making − −
payment (where the principal has been paid but interest under the
MSMED Act, 2006 not paid).
- Amount of interest accrued and remaining unpaid at the end of year. − −
- Amount of further interest remaining due and payable even in the − −
succeeding year.
2.58 3.04
**The Company entered into foreign exchange forward contracts with the intention of reducing the foreign exchange risk of trade
receivables; these contracts are not designated in hedge relationships and are measured at fair value through profit or loss.
***There is no amount due and outstanding as at balance sheet date to be credited to the Investor Education and Protection Fund.

Terms and conditions of financial liabilities:
- Trade payables are non-interest bearing and are normally settled on 30-day terms
- Other financial liabilities are normally settled as and when due
Note 14: Other liabilities

March 31, 2020 March 31, 2019
Non-current
− 123.46
Current
Deferred revenues 823.14 854.55
Withholding and other taxes 142.97 61.84
Other statutory dues 93.96 78.41
Deferred rent − 9.74
1,060.07 1,004.54
Note 15: Provisions

March 31, 2020 March 31, 2019
Non-current
For gratuity [Refer note 30] 1,150.97 965.71
1,150.97 965.71
Current
For gratuity [Refer note 30] 135.52 119.39
For compensated absence 816.31 769.91
951.83 889.30
Note 16: Income taxes

(a) The major components of income tax expense for the year ended March 31, 2020 and March 31, 2019 are:
March 31, 2020 March 31, 2019
(i) Profit or loss section
Current taxes 4,560.70 6,428.91
Deferred tax (301.47) 610.54
Income tax expense reported in the statement of profit and loss 4,259.23 7,039.45
(ii) Other Comprehensive Income section

Deferred tax on actuarial gain (loss) on gratuity fund (23.25) 13.93
Income tax expense charge reported in Other Comprehensive (23.25) 13.93
Income
Deferred tax charge for the year ended March 31, 2020 and March 31, 2019 relates to origination and reversal
of temporary differences.
175
(b) Reconciliation of tax expense and accounting profit for the year ended March 31, 2020 and March 31, 2019:
March 31, 2020 March 31, 2019
Enacted tax rates in India 25.168% 34.944%
Computed expected tax expenses 5,055.19 6,941.33
Tax effect
of earlier years (627.04) 45.34
on undistributed profits (542.92) 124.98
on non-deductible expenses for tax purpose 54.14 194.20
on weighted deduction for tax purpose − (454.48)
overseas taxes 145.38 179.42
effect of rate change 268.18 −
others (93.70) 8.66
Income tax expense reported in statement of profit and loss 4,259.23 7,039.45
The Company has exercised the option permitted under Section 115BAA of the Indian Income Tax Act, 1961
as introduced by The Taxation Laws (Amendment) Ordinance, 2019. Accordingly, the Company has recognized
provision for income tax and re-measured its deferred tax asset at the rate prescribed in the said section.
Impact of this change has been recognized in the statement of profit and loss account for the year ended
March 31, 2020.
(c) The tax effect of significant temporary differences that resulted in deferred tax asset are as follows:
March 31, 2020 March 31, 2019
Deferred tax assets
Difference between book and tax depreciation 87.86 69.79
Provision for compensated absence 183.26 247.49
Provision for gratuity 306.17 379.18
Impairment loss on financial assets 75.71 154.91
Tax on undistributed profits − (542.92)
Other timing differences 87.39 107.22
740.39 415.67
Deferred tax asset and deferred tax liabilities have been offset wherever the Company has a legally enforceable
right to set off current tax assets against current tax liabilities.
(d) Reconciliation of net deferred tax asset is as follows:

March 31, 2020 March 31, 2019
Balance, beginning of year 415.67 1,053.11
Tax (expense) on adoption of Ind AS 115 'Revenue from Contracts with − (12.97)
Customers'
Tax (expense) during the year recognized in statement of profit or loss 301.47 (610.54)
Tax (expense) during the year recognized in other comprehensive 23.25 (13.93)
income
Balance, end of the year 740.39 415.67
Upon adoption of the Appendix C on “Uncertainty over Income-tax Treatments” of Ind AS 12, Income Taxes,
the Company has reassessed during the year ended March 31, 2020 its estimate of uncertain income-tax
position. Based on its reassessment, during the year ended March 31, 2020, the Company has recorded net tax
expense of ₹ 57.46 million, which includes charge of ₹ 103.90 million pertaining to earlier years and credit of
₹ 46.44 million for the current year. Consequent to the tax expense, during the year ended March 31, 2020, the
Company has recognized the related interest expense of ₹ 16.48 million, including ₹ 8.24 million pertaining to
earlier years, which has been disclosed as part of finance cost in the statement of profit and loss.

Further, the Company during the year ended March 31, 2020, has reversed income tax provisions pertaining to
earlier years of ₹ 720.27 million arising out of adjudication of certain disputed matters in favour of the Company
and its reassessment of existing income tax position.
The current tax expense for the year ended March 31, 2020 of ₹ 4,560.70 million includes the income tax
expense of ₹ 57.46 million and reversals of income tax provisions of ₹ 720.27 million arising on account of
reassessment as mentioned above, thereby having a resultant impact of net tax credit of ₹ 662.81 million in the
year ended March 31, 2020.
Note 17: Revenue from operations

March 31, 2020 March 31, 2019
35,255.08 35,808.97
Note 18: Finance income

March 31, 2020 March 31, 2019
Interest on financial assets measured at amortized cost:
Balance with banks in current and deposit accounts 1,448.26 1,126.00
Investment in sublease 3.27 −
Loan to subsidiary 6.20 −
Others 0.08 −
1,508.73 1,173.47
Note 19: Other income, net

March 31, 2020 March 31, 2019
Fair value (loss) on derivatives not designated as hedges (119.10) (56.89)
Foreign exchange gain, net 222.74 167.20
Profit on sale of property, plant and equipment, net 0.23 0.69
182.86 216.03
Note 20: Employee benefit expenses

March 31, 2020 March 31, 2019
Salaries and bonus 10,488.47 10,520.10
Contribution to provident and other funds 698.10 648.37
Stock compensation expense 432.01 488.71
Staff welfare expenses 290.65 238.91
11,909.23 11,896.09
177
Note 21: Finance cost
March 31, 2020 March 31, 2019
Interest on lease liability 63.70 −
Interest on income tax 16.48 −
80.18 −
Note 22: Other operating expenses

March 31, 2020 March 31, 2019
Application software 21.73 26.82
Communication expenses 34.11 49.21
Rent 57.78 385.15
Power 194.82 197.89
Insurance 23.47 21.69
Repairs and maintenance:
Buildings and leasehold premises 45.79 35.89
Computer equipments 12.98 7.73
Others 71.99 126.15
Rates and taxes 26.05 30.32
Provision for diminution in value of investment in subsidiary companies − 168.77
Impairment loss on other financial assets 6.90 3.47
Bad debts 193.11 844.82
Corporate Social Responsibility [Refer note below] 357.68 323.30
Auditors' remuneration 14.37 11.04
Miscellaneous expenses 221.58 225.44
1,134.50 1,827.80
Note: As per the requirements of Section 135 of the Companies Act, 2013 the Company was required to spend an
amount of ₹ 357.37 million (March 31, 2019 - ₹ 323.23 million) on Corporate Social Responsibility expenditure
based on the average net profits of the three immediately preceding financial years. The Company has spent an
amount of ₹ 357.68 million (March 31, 2019 - ₹ 323.30 million) against Corporate Social Responsibility expenditure.
Note 23: Reconciliation of basic and diluted equity shares used in computing earnings per share
(Number of equity shares)
March 31, 2020 March 31, 2019
Weighted average shares outstanding for basic earnings per share 85,831,129 85,631,940
Add: Effect of dilutive component of stock options 362,046 436,875
Weighted average shares outstanding for diluted earnings per share 86,193,175 86,068,815

Note 24: Fair values
The management has assessed that fair value of financial instruments approximates their carrying amounts largely
due to the short term maturities of these instruments.
Fair value hierarchy:

The following table provides the fair value measurement hierarchy of the Company’s assets and liabilities.
markets (Level1) inputs (Level 2) inputs (Level 3)
Investment property [Refer note 5] March 204.30 ‒ 204.30 ‒
31, 2020

Foreign exchange forward contract, net March 62.44 ‒ 62.44 ‒
[Refer note 13] 31, 2020
markets (Level1) inputs (Level 2) inputs (Level 3)
Investment property [Refer note 5] March 245.00 ‒ 245.00 ‒
31, 2019
Assets measured at fair value:

Foreign exchange forward contract, net March 20.37 ‒ 20.37 ‒
[Ref note 7] 31, 2019
The following methods and assumptions are used to estimate the fair values:
The Company enters into derivative financial instruments with various banks. Foreign exchange forward contracts
are valued using valuation techniques, which employ the use market observable inputs. The most frequently applied
valuation techniques include forward pricing using present value calculations. The models incorporate various inputs
including the credit quality of counterparties, foreign exchange spot and forward rates, yield curves of the respective
currencies, currency basis spreads between the respective currencies.
There have been no transfers between Level 1 and Level 2 during the periods March 31, 2020 and March 31, 2019.
Note 25: Estimation of uncertainties relating to the global health pandemic from COVID-19
The Company has considered the possible effects that may result from the pandemic relating to COVID-19 on the
carrying value of trade receivables, unbilled receivables, contract assets and investment in subsidiaries, which are not
significant to the standalone financial statements for the year ended March 31, 2020. In assessing the recoverability of
these assets, the Company has used internal and external sources of information up to the date of approval of these
standalone financial statements, and based on current estimates, expects the net carrying amount of these assets
will be recovered. The impact on account of COVID-19 on the Company’s financial statements may differ from that
estimated as at the date of approval of these standalone financial statements. The Company will continue to monitor
any material impact due to changes in future economic conditions.
179
Note 26: Significant accounting judgements, estimates and assumptions
The preparation of the Company’s standalone financial statements requires management to make judgements,
estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, accompanying
disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could
result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future
periods.
The key assumptions and estimate at the reporting date that have a significant risk of causing a material adjustment
to the carrying amounts of assets and liabilities are described below. These assumptions and estimates are based
on available parameters as on the date of preparation of standalone financial statements. These assumptions and
estimates, however, may change due to market changes or circumstances arising that are beyond the control of the
Company.
(i) Leases
The Company has entered into commercial property leases for its offices. Further, the Company has also adopted
Ind AS 116 ‘Leases’ with effect from April 1, 2019 using the modified retrospective method.
The Company evaluates if an arrangement qualifies to be a lease as per the requirements of Ind AS 116.
Identification of a lease requires significant judgment. The Company uses significant judgement in assessing
the lease term and the applicable discount rate. The Company has lease contracts which include extension
and termination option and this requires exercise of judgement by the Company in evaluating whether it is
reasonably certain whether or not to exercise the option to renew or terminate the lease. The discount rate is
generally based on the incremental borrowing rate specific to the lease period.
(ii) Fair value of investment property
As per the Ind AS, the Company is required to disclose the fair value of the investment property.
Accordingly, the Company has engaged an independent valuation specialist to assess the fair values of investment
property as at March 31, 2020 and March 31, 2019. The investment property was valued by reference to
market-based evidence, using comparable prices adjusted for specific market factors such as nature, location
and condition of the investment property. The key assumptions used to determine fair value of the investment
property and sensitivity analysis are provided in note 5.
(iii) Impairment of non-financial assets
Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount,
which is the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal
calculation is based on available data from binding sales transactions, conducted at arm’s length, for similar
assets or observable market prices less incremental costs for disposing of the asset. The value in use calculation
is based on a DCF model. The cash flows are derived from the projections for the next five years and do not
include restructuring activities that the Company is not yet committed to or significant future investments
that will enhance the asset’s performance of the CGU being tested. The recoverable amount is sensitive to the
discount rate used for the DCF model as well as the expected future cash-inflows and the growth rate used for
extrapolation purposes.
(iv) Share based payments
The Company measures share-based payments and transactions at fair value and recognizes over the vesting
period using Black Scholes valuation model. Estimating fair value for share-based payment transactions requires
determination of the most appropriate valuation model, which is dependent on the terms and conditions of the
grant. This estimate also requires determination of the most appropriate inputs to the valuation model including
the expected life of the share option, volatility and dividend yield and making assumptions about them. The
assumptions and model used for estimating fair value for share-based payment transactions are disclosed in
note 29 (b).
(v) Taxes
Income tax expense comprises current tax expense and the net changes in the deferred tax asset or liability
during the year. Significant judgements are involved in determining the provision for income taxes, including
amount expected to be paid/recovered for uncertain tax positions, including disclosures thereof. Also refer note
2.3 (f), note 16 and note 39.
(vi) Defined benefit plans (gratuity benefits)
The cost of the defined benefit gratuity plan and other post-employment retirement benefits and the present
value of the gratuity obligation are determined using actuarial valuations. An actuarial valuation involves making

various assumptions that may differ from actual developments in the future. These include the determination of
the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation
and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All
assumptions are reviewed at each reporting date annually. The parameter most subject to change is the discount
rate. In determining the appropriate discount rate for plans operated in India, the management considers the
interest rates of government bonds in currencies consistent with the currencies of the post-employment benefit
obligation. For plans operated outside India, the management considers the interest rates of high quality corporate
bonds in currencies consistent with the currencies of the post-employment benefit obligation with at least an
‘AA’ rating or above, as set by an internationally acknowledged rating agency, and extrapolated as needed along
the yield curve to correspond with the expected term of the defined benefit obligation. The underlying bonds
are further reviewed for quality. Those having excessive credit spreads are excluded from the analysis of bonds
on which the discount rate is based, on the basis that they do not represent high quality corporate bonds.
The mortality rate is based on publicly available mortality tables for the specific countries. Those mortality
tables tend to change only at interval in response to demographic changes. Future salary increases is based on
expected future inflation rates for the respective countries. Further details about gratuity obligations are given in
note 30.
(vii) Fair value measurement of financial instruments
When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured
based on quoted prices in active markets, their fair value is measured using valuation techniques including the
DCF model. The inputs to these models are taken from observable markets where possible, but where this is
not feasible, a degree of judgment is required in establishing fair values. Judgements include considerations of
inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the
reported fair value of financial instruments. See note 24 for further disclosures.
(viii) Revenue recognition
The Company assesses the products / services promised in a contract and identifies distinct performance
obligations in the contract. Identification of distinct performance obligation involves judgement to determine the
deliverables. The Company exercises judgement in determining whether the performance obligation is satisfied
at a point in time or over a period of time.
In determining the transaction price for the contract, judgement is required to assess if the consideration is
fixed or is considered variable and whether there is any constraint on such variable consideration such as
volume discounts, service level credits and price concessions. The Company uses judgement to determine an
appropriate standalone selling price for each performance obligation and allocates the transaction price to each
performance obligation on the basis of the relative standalone selling price of each distinct product or service
promised in the contract except for sale of software licenses, where the Company uses a residual approach for
estimating the standalone selling price of software license as the pricing is highly variable.
Contract fulfilment costs are generally expensed as incurred except for certain contract costs which meet the
criteria for capitalization. Such costs are amortized over the benefit period. The assessment of this criteria
requires the application of judgement.
Note 27: Capital commitments and contingent liabilities

a) Capital commitments towards
i) property, plant and equipment
contracts remaining to be executed on capital account not 124.68 231.90
provided for (net of advances)
ii) acquisition of shares of step-down subsidiary companies 120.00 145.00
iii) unsecured loan to step-down subsidiary company 144.00 250.00
b) Contingent liabilities (Refer note 39 for tax litigations) Nil Nil
181
Note 28: Leases
Where Company is lessee
The changes in the carrying values of right-of-use asset for the year ended March 31, 2020 are given in note 4.
Set out below are the carrying amounts of lease labilities and the movement during the year ended March 31, 2020:
Particulars
As at April 01, 2019 −
Adjustment on adoption of Ind AS 116 'Leases' 806.68
Modifications (6.64)
Interest on lease liability 63.70
Repayments (325.21)
Exchange impact 14.07
As at March 31, 2020 552.60
Current 269.35
Non-Current 283.25
Total 552.60
The maturity analysis of undiscounted lease liabilities as at March 31, 2020 are as follows:
Particulars
1 to 5 years 342.13
Total 650.97
The following amounts are recognized in the statement of profit and loss for the year ended March 31, 2020:
Particulars
Depreciation expenses on right-of-use asset 293.11
Interest expense on lease liability 63.70
Expense relating to short-term leases and other service charges (included in other operating 57.78
expenses as rent)
Total 414.59
Interest income from subleasing right-of-use asset (3.27)
Total 411.32
The Company had total cash outflows for leases of ₹ 261.51 million (excluding interest) for the year ended
March 31, 2020. The Company did not have any non-cash additions to right-of-use assets and lease liabilities for the
year ended March 31, 2020. Further, there are no future cash outflows relating to leases that have not yet commenced.
Future income receivable from subleasing of right-of-use asset as at March 31, 2020 is as follows:
Particulars
1 to 5 years −
Total 22.89
Unearned finance income (0.68)
Investment in sublease of right-of-use asset 22.21

The minimum rental payments to be made in future in respect of leases to which the Company has chosen to apply
the practical expedient as per the standard as of March 31, 2020 are as follows:
Particulars
1 to 5 years −
Total 1.74
Note 29: Share based compensation / payments
(a) Employee Stock Purchase Scheme (“ESPS”)

(“the Trust”) to provide equity based incentives to key employees of the Company. i-flex Solution Trustee Company
Ltd. is the Trustee of this Trust.
under the Trust have exercised their right of purchase of shares prior to March 31, 2014. In this regard, the Trustee
Company had filed a petition in the Honorable Bombay High Court to seek directions for utilization of the remaining
unallocated shares along with the other assets held by the Trust for the benefit of the employees of the Company. As
per the order of the Honorable Bombay High Court dated August 1, 2016, the trust funds would be utilized for the
benefit of the employees. Accordingly, during the year ended March 31, 2020 the trust has incurred an expenditure
of ₹ 48.59 million (March 31, 2019 - ₹ 10.89 million) towards welfare of employees of the Company.
As at March 31, 2020, the Trust is not holding any equity shares (March 31, 2019 - 27,160 equity shares) of the
Company.
(b) Employee Stock Option Plan (“ESOP”)

from time to time, by the Members at their Annual General Meeting held on August 18, 2011. This extended limit is an
all inclusive limit applicable for stock options (“options”) granted in the past and in force and those that will be granted
by the Company under this authorization.
Pursuant to ESOP scheme approved by the shareholders of the Company on August 14, 2001, the Board of Directors,
on March 4, 2002 approved the 2002 Employees Stock Option Scheme (“Scheme 2002”) for issue of 4,753,600
options to the employees and directors of the Company and its subsidiaries. According to the Scheme 2002, the
Company has granted 4,548,920 options prior to the IPO and 619,000 options at various dates after IPO (including
the grants of options out of options forfeited earlier). On August 25, 2010, the Board of Directors approved the
Employees Stock Option Plan 2010 Scheme (“Scheme 2010”) for issue of 618,000 options to the employees and
directors of the Company and its subsidiaries. According to the Scheme 2010, the Company has granted 638,000
options (including the grants of options out of options forfeited earlier).
Pursuant to ESOP scheme approved by the shareholders of the Company in their meeting held on August 18, 2011,
Company has granted 1,950,500 options under the Scheme 2011. Nomination and Remuneration Committee in their
meeting held on August 7, 2014 approved Oracle Financial Services Software Limited Stock Plan 2014 (“OFSS Stock
Plan 2014”). Accordingly, the Company granted 178,245 Stock Options and 854,453 OFSS Stock Units (“OSUs”)
under OFSS Stock Plan 2014. The issuance terms of OSUs are the same as for Stock Options, employees may elect to
receive 1 OSU in lieu of 4 awarded Stock Options at their respective exercise price.
employee or directorship of the director with the Company or its subsidiaries. Options have exercise period of 10 years
from the date of grant. The employee pays the exercise price upon exercise of options.
In respect of the OFSS Stock Plan 2014, each of 25% of the total options / OSUs granted will vest on completion of
12, 24, 36 and 48 months from the date of grant and is subject to continued employment of the employee with the
Company or its subsidiaries. Options / OSUs have exercise period of 10 years from the date of grant. The employee
183
(₹) (₹)
Exercised (3,230) 2,050 (3,120) 2,050
Forfeited − − (1,300) 2,050

(₹) (₹)
Exercised (14,082) 2,545 (241,558) 3,034
Forfeited (13,200) 3,112 (12,100) 2,949
A summary of the activity in the Company’s ESOP (OFSS Stock Plan 2014) is as follows:
from Stock average from Stock average
Options and exercise price Options and exercise price
OSUs (₹) OSUs (₹)
Outstanding at beginning of year 554,572 878 560,669 863
Granted 142,250 5 137,669 381
Exercised (82,839) 15 (117,576) 103
Forfeited (18,809) 609 (26,190) 1,412
Outstanding at end of the year 595,174 798 554,572 878
Vested options and OSUs 252,203 192,454
Unvested options and OSUs 342,971 362,118
During the year ended March 31, 2020, the Company has granted 142,250 OSUs at an exercise price of ₹ 5
(March 31, 2019 -12,450 stock options and 125,219 OSUs at an exercise price of ₹ 4,158 and ₹ 5 respectively) under
OFSS Stock Plan 2014.
The weighted average share price for the year over which stock options / OSUs were exercised was ₹ 3,001
(March 31, 2019 - ₹ 3,960).

(₹) (Years)
3,393 12,155 3,393 6.2
3,579 4,300 3,579 7.2
4,158 8,177 4,158 8.2

1,930 50,889 1,930 1.7
2,050 33,835 2,050 0.4
3,077 167,983 3,077 3.5
3,127 136,070 3,127 2.8
3,241 41,033 3,241 5.0
3,393 35,045 3,393 6.2
3,579 4,205 3,579 7.2
3,987 26,050 3,987 5.6
4,158 2,723 4,158 8.2
983,951 1,611 5.5

(₹) (Years)
3,393 25,100 3,393 7.2
3,579 6,450 3,579 8.2
3,987 6,792 3,987 6.6
4,158 10,900 4,158 9.2

1,930 57,541 1,930 2.7
2,050 37,065 2,050 1.4
3,077 176,683 3,077 4.5
3,127 148,000 3,127 3.8
3,241 41,578 3,241 6.0
3,393 23,712 3,393 7.2
3,579 2,155 3,579 8.2
3,987 20,408 3,987 6.6
973,861 1,726 5.9
Stock Options / OSUs granted during the financial year ended March 31, 2020:
The weighted average fair value of stock options / OSUs granted during the year was ₹ 3,168 (March 31, 2019 -
₹ 3,868).
185
The Black Scholes valuation model has been used for computing the above weighted average fair value of Stock
Options / OSUs granted considering the following inputs:

OFSS Stock Plan 2014 (OSU)
May, 2019 June, 2019 Sept, 2019 Sept, 2019 Oct, 2019
Weighted average share price (in ₹) 3,389 3,178 3,077 2,874 3,106
Exercise Price (in ₹) 5/- 5/- 5/- 5/- 5/-
Expected Volatility 23% 22% 23% 23% 24%
Weighted average life (in years) 2.61 2.61 2.61 2.60 2.60
Expected dividend rate Nil Nil Nil Nil Nil
Average risk-free interest rate 6.79% 6.38% 5.76% 5.78% 5.61%

OFSS Stock Plan OFSS Stock Plan
2014 (Stock Option) 2014 (OSU)
June, 2018 June, 2018
Weighted average share price (in ₹) 991 4,154
Exercise Price (in ₹) 4,158 5
Expected Volatility 22% 22%
Weighted average life (in years) 2.93 2.60
Expected dividend rate Nil Nil
Average risk-free interest rate 7.61% 7.48%
The expected volatility was determined based on historical volatility data; historical volatility includes early years of the
Company’s life; the Company expects the volatility of its share price to reduce as it matures.
Note 30: Employee benefit obligation

Defined contribution plans
During year ended March 31, 2020 and 2019, the Company contributed following amounts to defined contributions
plans:
March 31, 2020 March 31, 2019
Provident fund 372.92 331.70
Superannuation fund 114.15 114.65
487.07 446.35
Defined benefit plan – gratuity
The amounts recognized in the statement of profit and loss for the year ended March 31, 2020 and 2019 are as
follows:
March 31, 2020 March 31, 2019
Past service cost − −
Interest cost, net 74.74 69.56
Total included in employee benefit expenses 211.03 202.01

Remeasurements recognized in other comprehensive income are as follows:
March 31, 2020 March 31, 2019
Due to change in demographic assumptions 6.64 −
Due to change in financial assumptions 101.99 (6.48)
(Return) on plan assets (excl. interest income) 0.08 2.32
Total remeasurements in other comprehensive income 92.36 (39.87)
The amounts recognized in the balance sheet are as follows:

Particulars As at As at
March 31, 2020 March 31, 2019
Present value of partially funded obligations 1,059.04 938.13
Present value of unfunded obligations 230.43 148.35
Fair value of plan assets (2.98) (1.38)
Net liability 1,286.49 1,085.10
Changes in present value of defined benefit obligation representing reconciliation of opening and closing balances
thereof are as follows:
March 31, 2020 March 31, 2019
Defined benefit obligation at beginning of the year 1,086.48 1,003.39
Past service cost − −
Interest cost 74.78 69.89
Effect of exchange rate changes 17.73 −
Re-measurements
- Due to change in demographic assumptions 6.64 −
- Due to changes in financial assumptions 101.99 (6.48)
- Due to change in experience adjustments (16.35) (35.71)
Defined benefit obligation at end of the year 1,289.47 1,086.48
Changes in the fair value of plan assets representing reconciliation of opening and closing balances thereof are as follows:
March 31, 2020 March 31, 2019
Fair value of plan assets at beginning of the year 1.38 5.16
Interest income 0.04 0.33
(Return) on plan assets (excl. interest income) (0.08) (2.32)
Contribution by employer 104.50 66.67
Fair value of plan assets at end of the year 2.98 1.38
Plan assets are administered by LIC of India.
187
The assumptions used in accounting for the gratuity plan are set out as below:
Discount rate 3.05% - 6.70% 3.90% - 7.80%
Expected return on plan assets 6.70% 7.80%
Salary escalation rate 2.00% - 8.00% 2.00% - 8.00%
Weighted average duration (years) 8 – 12 8 – 15
The estimates of future salary increase, considered in actuarial valuation, take account of inflation, seniority, promotions
and other relevant factors such as supply and demand in the employment market.
The Company evaluates these assumptions annually based on its long-term plans of growth and industry standards.
The discount rates are based on current market yields on government bonds consistent with the currency and
estimated term of the post employment benefits obligations. Plan assets are administered by LIC. The expected rate
of return on plan assets is based on the expected average long term rate of return on investments of the fund during
the terms of the obligation.
The Company’s contribution to the fund for the year ending March 31, 2021 is expected to be ₹ 122.92 million
(March 31, 2020 - ₹ 113.25 million).
A quantitative sensitivity analysis for significant assumptions on defined benefit obligation as at March 31, 2020 and
March 31, 2019 is as shown below:
Particulars Sensitivity Year ended Year ended
level March 31, 2020 March 31, 2019
Financial assumptions
Discount rate - 0.5% 1,342.32 1,129.39
+ 0.5% 1,240.14 1,046.37
Salary escalation rate - 0.5% 1,246.36 1,049.21
+ 0.5% 1,334.64 1,125.41
Demographic assumptions
Withdrawal rate - 1% 1,293.57 1,083.37
+ 1% 1,285.68 1,089.11
Note 31: Investment in subsidiary company

The Board of Directors of Mantas India Private Limited at its meeting held on May 29, 2019 have approved transfer of
shares held in it by Sotas Inc. to the Company. Accordingly, the Company acquired all the equity shares of Mantas India
Private Limited from Sotas Inc. for a total consideration of ₹ 20.28 million (equivalent USD 0.29 million). Subsequent
to the acquisition, Mantas India Private Limited has become a direct subsidiary of the Company.
Note 32: Financial risk management objectives and policies

The Company’s activities expose it to market risks, Liquidity risk and credit risks. The management oversees these
risks and is aided by the Risk Management Committee whose scope is to formulate the risk management policy, which
will identify elements of risk, if any which may affect the Company.
(a) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes
in market prices. Market risk mainly comprises of foreign currency risk.
Foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of monetary items will fluctuate because of
changes in foreign exchange rates. This may have potential impact on the statement of profit and loss and other
components of equity, where monetary items are denominated in a foreign currency, which are different from
functional currency in which they are measured. As at the balance sheet date, the Company’s net foreign currency
exposure expressed in INR that is not hedged is ₹ 1,674.93 million (March 31, 2019 - ₹ 2,750.14 million).

Following are the carrying amounts of foreign currency denominated monetary items (net) of the Company where it
has significant exposure as at the balance sheet date:
USD 1,191.63 809.02
CNY 65.75 1,071.42
JPY 165.21 375.70
EUR 265.74 58.68
AUD 108.09 356.76
The Company manages its foreign currency risk by hedging the receivables in the major currencies (USD, EUR, AUD,
GBP and JPY) using hedging instrument as forward contracts. The period of the forward contracts is determined by
the expected collection period for invoices which currently ranges between 30 to 120 days.
Foreign currency sensitivity
Below table demonstrates sensitivity impact on Company’s profit after tax and total equity due to change in foreign
exchange rates of currencies where it has significant exposure:
+1% -1% +1% -1%
USD 30.27 (30.27) 22.04 (22.04)
CNY 0.49 (0.49) 6.92 (6.92)
JPY 3.07 (3.07) 3.58 (3.58)
EUR 5.60 (5.60) 1.25 (1.25)
AUD 3.01 (3.01) 3.53 (3.53)
The above sensitivity impact gain (loss) is due to every percentage point appreciation or depreciation in the exchange
rate of respective currencies, with all other variables held constant. Sensitivity impact is computed based on change
in value of monetary assets and liabilities denominated in above respective currency, where the functional currency of
the entity is a currency other than above respective currency and entities with functional currency as above respective
currency where transactions are in foreign currencies. The Company’s exposure to foreign currency changes for all
other currencies is not material.
(b) Liquidity risk

Liquidity risk management implies maintaining sufficient availability of funds to meet obligations when due and to
close out market positions. The Company monitors rolling forecast of the cash and cash equivalent on the basis of
expected cash flows.
The table below summarizes the maturity profile of the Company’s financial liabilities.
Lease liability 269.35 283.25 552.60
Trade payables 265.58 − 265.58
Foreign exchange forward contract, net 62.44 − 62.44
Amount due to subsidiaries 245.96 − 245.96
Accrued expenses 768.06 − 768.06
Accrued compensation to employees 384.27 − 384.27
2,112.03 283.25 2,395.28
189
Trade payables 423.09 − 423.09
Amount due to subsidiaries 275.62 − 275.62
Accrued expenses 814.65 − 814.65
Accrued compensation to employees 504.27 − 504.27
2,278.96 − 2,278.96
The Company has sufficient funds in cash and cash equivalents and other bank balances to meet obligations towards
financial liabilities.
(c) Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract,
leading to a financial loss. The Company is exposed to credit risk from its operating activities and from its finance
activities, including time deposits with banks, foreign exchange transactions and other financial instruments.
(i) Trade receivables
Customer credit risk is managed in line with the established policy, procedures and control relating to customer credit
risk management. Credit quality of a customer is assessed based on an extensive credit rating scorecard and individual
credit limits are defined in accordance with this assessment.
An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, a
large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively.
The calculation is based on regional historical data. The maximum exposure to credit risk at the reporting date is the
carrying value of each class of financial assets disclosed in note 7.
(ii) Cash and Bank balances
Credit risk from balances with banks is managed by the Company’s treasury department in accordance with the
Company’s policy. Investments of surplus funds are made only with existing Bankers and within credit limits assigned
to each banker.
Company follows a conservative philosophy and aims to invest surplus funds in India only in time deposits with
well-known and highly rated banks. The duration of such time deposits will not exceed 364 days. The Company, on
quarterly basis, monitors the credit ratings and total deposit balances of each of its bankers. Further limits are set to
minimize the concentration of risks and therefore mitigate financial loss of any potential failure to repay deposits.
Note 33: Capital management

For the purpose of the Company’s capital management, capital includes issued equity share capital, share premium
and all other equity reserves attributable to the equity shareholders of the Company. The primary objective of the
Company’s capital management is to maximize the equity shareholder value.
The Company manages its capital structure and makes adjustments in light of changes in economic conditions and
other financial requirements.
Note 34: Derivative instruments

The Company enters into forward foreign exchange contracts where the counter party is a bank. The Company
purchases forward foreign exchange contracts to mitigate the risks of change in foreign exchange rate on receivables
denominated in certain foreign currencies. The Company considers the risk of non-performance by the counter party
as non-material. As at March 31, 2020 the Company has following outstanding derivative instrument:
(Amounts in million)
Forward contracts - Sell in US Dollar USD 37.76 USD 37.76
Forward contracts - Sell in AU Dollar AUD 6.30 AUD 3.87
Forward contracts - Sell in Euro EUR 5.80 EUR 1.75
Forward contracts - Sell in JPY JPY 339.00 JPY 287.00
Forward contracts - Sell in GBP GBP 0.70 Nil

Note 35: Names of Related Parties and description of relationship:

(i) Related parties where control exists
Ultimate Holding Company Oracle Corporation
Holding Company Oracle Global (Mauritius) Limited
Direct Subsidiaries Oracle Financial Services Software B.V.

Oracle Financial Services Software Pte. Ltd.
Oracle Financial Services Software Chile Limitada
Oracle Financial Services Software America, Inc.
ISP Internet Mauritius Company
Oracle (OFSS) ASP Private Limited
Mantas India Private Limited (from May 29, 2019)
Subsidiaries of Subsidiaries Subsidiary of Oracle Financial Services Software B.V.

- Oracle Financial Services Software SA
Subsidiary of Oracle Financial Services Software Pte. Ltd.

- Oracle Financial Services Consulting Pte. Ltd.
Subsidiaries of Oracle Financial Services Software America, Inc.

- Oracle Financial Services Software, Inc.
- Mantas Inc.
Subsidiaries of Mantas Inc.
- Sotas Inc.
Subsidiary of Sotas Inc.
- Mantas India Private Limited (till May 28, 2019)
Subsidiaries of ISP Internet Mauritius Company

- Oracle (OFSS) BPO Services Inc.
- Oracle (OFSS) BPO Services Limited
(ii) Related parties with whom transactions have taken place during the year
Fellow Subsidiaries Oracle Egypt Ltd.

Oracle Canada ULC
Oracle Taiwan LLC
Oracle Romania SRL
Oracle Hungary Kft.
Oracle EMEA Limited
Oracle Czech s.r.o.
Oracle America, Inc.
Oracle Nederland B.V.
Oracle Vietnam Pte. Ltd
Oracle Italia S.R.L.
Oracle Polska, Sp.z.o.o.
191
Fellow Subsidiaries (continued) Oracle India Private Limited
Oracle East Central Europe Limited
Oracle Systems Hong Kong Limited
Oracle Corporation UK Limited
Oracle (Philippines) Corporation
Oracle do Brasil Sistemas Limitada
Oracle Corporation Malaysia Sdn. Bhd.
Oracle Systems Limited
Oracle Corporation Singapore Pte. Ltd.
Oracle East Central Europe Services BV
Oracle Corporation Australia Pty. Limited
Oracle Solution Services (India) Private Ltd.
Oracle Corporation (Thailand) Company Limited
Oracle Portugal - Sistemas de Informação Lda.
Oracle Corporation (South Africa) (Pty) Limited
Oracle Research & Development Center, Beijing, Ltd.
Oracle Research & Development Center, Shenzhen, Ltd.
Oracle Technology Systems (Kenya) Limited
Oracle de Mexico, S.A. de C.V.
Oracle New Zealand
PT Oracle Indonesia
Oracle (China) Software Systems Co. Ltd.
Oracle Colombia Limitada
Oracle Belgium B.V.B.A/SPRL
Systemas Oracle de Chile, SA
Oracle Korea Ltd.
Oracle Slovensko Spor s.r.o.
(iii) Controlled Trust i-flex ESOP Stock Option Trust
(iv) Key Managerial Personnel ('KMP') Chaitanya Kamat - Managing Director and Chief Executive Officer
Makarand Padalkar - Whole-time Director & Chief Financial Officer
(Whole-time Director from May 9, 2019)
Onkarnath Banerjee - Company Secretary & Compliance Officer
(v) Independent Directors S Venkatachalam

Richard Jackson
Sridhar Srinivasan
Jane Murphy (from February 13, 2019)

Transactions and balances outstanding with these parties are described below:
2020 2019 2020 2019
Revenue
Fellow subsidiaries
Oracle America, Inc. 630.32 559.25 121.46 83.48
Oracle Corporation (South Africa) (Pty) 537.25 700.93 62.99 18.54
Limited
Oracle India Private Limited 419.01 478.63 50.87 202.56
Oracle Egypt Ltd. 482.62 1,291.06 96.53 322.08
Oracle Systems Limited 6.69 224.04 (0.05) 5.87
Oracle Portugal - Sistemas de Informação (8.76) 8.84 (9.37) −
Lda.
Oracle do Brasil Sistemas Limitada (0.39) 39.60 (5.34) 41.47
Subsidiaries
Oracle Financial Services Software B.V. 10,872.86 9,574.13 432.16 85.92
Oracle Financial Services Software, Inc. 8,568.36 9,099.24 279.13 364.84
Oracle Financial Services Software Pte. Ltd. 8,216.20 8,587.28 1,929.65 1,450.82
Oracle Financial Services Software (Shanghai) 79.00 111.14 34.91 1,214.16
Limited
Oracle Financial Services Software Chile 248.62 191.32 135.63 112.42
Limitada
Oracle (OFSS) Processing Services Limited 33.40 11.30 2.40 −
Advance from customers

Fellow Subsidiaries
Oracle Corporation (South Africa) (Pty) − 137.87 − −
Limited
Oracle Systems Limited − 0.04 − −
Unbilled revenue
Fellow Subsidiaries
Oracle America, Inc. − − 51.46 36.02
Oracle Corporation (South Africa) (Pty) − − 42.01 63.40
Limited
Oracle do Brasil Sistemas Limitada − − 0.61 1.30
Oracle India Private Limited − − 10.72 102.64
Oracle Systems Limited − − − (1.42)
Oracle Egypt Ltd. − − 19.99 195.21
Subsidiaries
Oracle Financial Services Software B.V. − − 736.13 594.77
Oracle Financial Services Software, Inc. − − 497.41 248.50
Oracle Financial Services Software Pte. Ltd. − − 577.26 783.61
Oracle Financial Services Software (Shanghai) − − 23.81 26.79
Limited
Oracle Financial Services Software Chile − − (1.62) (8.01)
Limitada
Oracle (OFSS) Processing Services Limited − − 7.82 11.24
193
2020 2019 2020 2019
Deferred revenue
Fellow Subsidiaries
Oracle India Private Limited − − − (0.41)
Oracle Systems Limited − − (20.21) −
Oracle Egypt Ltd. − − − (20.19)
Bad debts
Fellow Subsidiaries
Oracle Corporation (South Africa) (Pty) − 0.88 − −
Limited
Oracle India Private Limited − (1.90) − −
Oracle Egypt Ltd. − 715.30 − −
Oracle Systems Limited − (7.22) − −
Oracle Portugal - Sistemas de Informação − 0.05 − −
Lda.
Subsidiaries
Oracle Financial Services Software, Inc. 23.57 30.27 − −
Oracle Financial Services Software Pte. Ltd. 1.15 3.76 − −
Oracle Financial Services Software B.V. 35.41 80.15 − −
Oracle Financial Services Software (Shanghai) − (1.52) − −
Limited
Fellow Subsidiaries
Oracle America, Inc. (0.01) (0.15) (0.05) (0.06)
Oracle Egypt Ltd. (50.76) (620.38) (5.66) (56.42)
Oracle Corporation (South Africa) (Pty) (0.83) (7.35) (5.99) (6.82)
Limited
Oracle Systems Limited (0.01) 0.08 − (0.01)
Oracle India Private Limited (1.17) 2.90 − (1.17)
Oracle do Brasil Sistemas Limitada (4.94) 4.94 − (4.94)
Oracle Technology Systems (Kenya) Limited − 1.02 − −
Subsidiaries
Oracle Financial Services Software B.V. 49.51 (20.67) (147.07) (97.56)
Oracle Financial Services Software, Inc. (13.67) 17.95 (31.04) (44.71)
Oracle Financial Services Software Pte. Ltd. 27.08 9.22 (59.84) (32.76)
Oracle Financial Services Software (Shanghai) (2.57) (0.33) (0.00) (2.57)
Limited
Oracle Financial Services Software Chile 6.34 0.63 (10.16) (3.82)
Limitada

2020 2019 2020 2019
Application software expenses

Fellow Subsidiary
Oracle India Private Limited − 3.64 − −
Rent expenses (including lease payments)

Fellow Subsidiaries
Oracle Systems Limited 46.30 43.54 − −
Miscellaneous income (including sub-lease

receipts)
Fellow Subsidiaries
Oracle India Private Limited 71.55 52.74 − 3.42
Oracle Solution Services (India) Private Ltd. 24.83 16.54 − 6.77
Subsidiaries
Oracle Financial Services Software (Shanghai) 8.19 − − −
Limited
Oracle (OFSS) Processing Services Limited 0.40 0.38 − 0.07
Payment of equity dividend

Holding Company
Oracle Global (Mauritius) Limited − 8,196.66 − −
Key managerial personnel − 17.37 − −
Controlled Trust − 7.27 − −
Independent Directors − 0.78 − −
Professional fee expenses

Fellow Subsidiaries
Oracle Research & Development Center, 35.03 36.75 (5.16) (10.82)
Shenzhen, Ltd.
Oracle Research & Development Center, − (0.13) − −
Beijing, Ltd.
Oracle EMEA Limited 40.32 9.76 (12.54) (42.94)
Oracle Systems Limited 10.82 10.02 (23.80) (13.05)
Oracle Portugal - Sistemas de Informação − 0.10 (2.26) (2.30)
Lda.
Oracle Corporation (South Africa) (Pty) 0.61 (4.02) (0.43) (3.30)
Limited
Oracle Egypt Ltd. − 0.49 − −
Oracle Colombia Limitada − (4.19) − −
195
2020 2019 2020 2019
Oracle de Mexico, S.A. de C.V. − 31.75 − (26.87)
Oracle Canada ULC − 0.25 − (0.26)
Oracle Corporation UK Limited − 2.31 (2.29) (2.35)
Oracle do Brasil Sistemas Limitada 0.13 1.38 (1.50) (1.38)
Oracle East Central Europe Services BV 0.04 0.43 (0.47) (0.43)
Oracle Taiwan LLC 1.67 − − −
Subsidiaries
Oracle Financial Services Software B.V. 19.95 29.51 (4.51) (22.15)
Oracle Financial Services Software, Inc. 97.18 193.01 (99.11) (83.18)
Oracle (OFSS) Processing Services Limited 306.25 295.12 (164.88) (51.93)
Oracle (OFSS) BPO Services Limited 35.38 − (12.44) −
Oracle Financial Services Software (Shanghai) 0.01 − − −
Limited
Reimbursement (recovery) of expenses

Subsidiaries
Oracle Financial Services Software B.V. 105.91 272.91 (13.36) (47.56)
Oracle Financial Services Software, Inc. (7.66) 551.65 − −
Oracle Financial Services Software Chile − − 0.31 0.34
Limitada
Oracle Financial Services Software (Shanghai) (2.07) 10.33 12.95 9.84
Limited
Oracle (OFSS) Processing Services Limited 1.70 (0.07) 0.46 0.60
Oracle (OFSS) BPO Services Limited (0.13) 0.05 (0.01) 0.22
i-flex ESOP Stock Option Trust (0.67) (0.34) − 0.05
Directors 3.07 3.05 − −
Key managerial personnel [Refer note (i)]

Short-term employment benefits 62.11 50.16 − −
Post-employment retiral benefits 0.60 0.78 − −
Share based payments 138.21 148.43 − −
Commission
Independent Directors 15.65 10.14 (1.49) (0.32)
Other expenses
Fellow Subsidiaries
Oracle Corporation UK Limited 0.14 (4.36) (0.15) −
Oracle India Private Limited 13.85 (2.06) (2.71) (12.00)
Oracle Corporation Singapore Pte. Ltd. 0.72 (0.28) (0.67) −

2020 2019 2020 2019
Oracle (China) Software Systems Co. Ltd. − (0.01) − −
Oracle Corporation (South Africa) (Pty) 15.43 12.40 (22.14) (60.56)
Limited
Oracle Portugal - Sistemas de Informação 1.26 (3.81) (1.26) −
Lda.
Oracle Polska, Sp.z.o.o. 0.04 0.12 (3.59) (4.51)
Oracle Vietnam Pte. Ltd 1.82 (11.51) (2.95) (2.37)
Oracle Corporation (Thailand) Company 6.30 1.31 (11.61) (11.54)
Limited
Oracle (Philippines) Corporation 2.78 2.76 (8.27) (8.87)
Oracle Italia S.R.L. 12.35 7.35 (5.98) (11.97)
Oracle Taiwan LLC 0.99 (4.95) (1.11) (2.16)
Oracle Czech s.r.o. − (0.35) − (0.05)
Oracle Egypt Ltd. 2.87 4.91 (2.20) (18.07)
Oracle East Central Europe Limited 5.63 0.20 (7.80) (2.83)
Oracle East Central Europe Services BV 0.91 0.96 (5.58) (4.67)
Oracle New Zealand 0.66 (1.50) (3.72) (13.63)
Oracle Hungary Kft. 3.91 (0.55) (5.58) (1.67)
Oracle Belgium B.V.B.A/SPRL − (8.83) − −
Oracle Systems Hong Kong Limited 0.32 − (0.33) −
Oracle Korea Ltd. 0.30 − (0.30) −
Oracle do Brasil Sistemas Limitada 0.18 − (0.18) −
Systemas Oracle de Chile, SA 0.23 − (0.23) −
Oracle Slovensko Spor s.r.o. 1.57 − (1.57) −
Subsidiary
Oracle Financial Services Software (Shanghai) (0.59) − − −
Limited
Procurement / (sale) of fixed assets, net

Fellow Subsidiary
Oracle India Private Limited 2.18 504.57 − (108.88)
Investments
Subsidiaries
Oracle Financial Services Software B.V. 1.15 5.72 809.37 808.22
Oracle Financial Services Software Pte. Ltd. 2.86 14.54 131.49 128.63
Oracle Financial Services Software America, 1.49 11.28 6,415.69 6,414.20
Inc.
Oracle Financial Services Software (Shanghai) (0.05) 0.24 46.04 46.09
Limited
197
2020 2019 2020 2019
Oracle Financial Services Software Chile 0.36 0.62 80.76 80.40
Limitada
ISP Internet Mauritius Company 5.24 6.16 333.75 328.51
Sotas Inc. 20.28 − − −
Mantas India Private Limited − − 20.28 −
Oracle (OFSS) ASP Private Limited − − 46.10 46.10
Oracle (OFSS) Processing Services Limited − − 13.00 13.00
Stock compensation charge

Oracle Corporation 17.85 12.19 − −
Oracle Employee Stock Purchase Plan

Loan to step-down subsidiary company

Oracle (OFSS) BPO Services Limited 106.00 − 106.00 −
Interest on loan to step-down subsidiary

company
Oracle (OFSS) BPO Services Limited 6.20 − − −
Provision for diminution in investment

Subsidiaries
ISP Internet Mauritius Company − 209.47 (209.47) (209.47)
Oracle (OFSS) ASP Private Limited − (40.70) (5.40) (5.40)
Note (i): Remuneration includes salary, bonus and perquisites. During the year, 52,250 OSUs under OFSS Stock Plan
2014 (March 31, 2019 - 31,750 OSUs under OFSS Stock Plan 2014) were granted to KMP.
Note (ii): Terms and conditions of transactions with related parties:
The sales to and purchases from related parties are made on terms equivalent to those that prevail in arm's length
transactions. Outstanding balances at year end are unsecured and interest free (except loan to step-down subsidiary
company) and settlement occurs in cash.

Note 36: Earnings in foreign currency (on accrual basis) *
March 31, 2020 March 31, 2019
31,932.47 32,845.50
*Excludes revenue from operations of foreign branches.
Note 37: Expenditure in foreign currency (on accrual basis)
March 31, 2020 March 31, 2019
Employee benefit expenses 1,068.95 1,177.71
Travel related expenses 107.18 130.59
Professional fees 771.71 798.12
Other operating expenses 20.68 85.24
Foreign taxes 105.87 470.38
2,074.39 2,662.04
Note 38: Net equity dividend remitted in foreign exchange

March 31, 2020 March 31, 2019
Year of remittance (ending on) − March 31, 2019
Period to which it relates − March 31, 2018
Number of non resident shareholders − 1
Number of equity shares on which dividend was due − 63,051,197
Amount remitted (in US$ million) − 114.05
Amount remitted (in ₹ million) − 8,196.66
Note 39: Tax litigations

As at March 31, 2020, the Company has certain litigations with respect to tax matters for various assessment years
amounting to ₹ 11,388.20 million (March 31, 2019 - ₹ 9,602.47 million), which are pending before various appellate
/ tax authorities. The management expects that its position will be upheld on ultimate resolution and the possibility
of any outflow of resources is remote. Demand of tax payable after adjusting taxes paid under protest and refunds
amounts to ₹ 5,476.48 million (March 31, 2019 - ₹ 3,549.47 million) as at March 31, 2020. Further for certain
litigations the Company has aggregate provisions of ₹ 886.21 million (March 31, 2019 - ₹ 1,030.66 million) as at
March 31, 2020.
Note 40: Auditors remuneration (including GST)
March 31, 2020 March 31, 2019
As auditor
Audit fees 8.20 5.78
Limited review 6.02 4.96
Tax audit 1.36 0.65
Certifications 1.07 1.52
Out-of-pocket expenses 0.31 0.12
16.96 13.03
199
Note 41: Other operating expenses for the year ended March 31, 2019 include ₹ 209.47 million towards provision
for diminution in value of investment along with provision for loss in fair value of loan given to ISP Internet Mauritius
Company and reversal of provision for diminution in value of investment in Oracle (OFSS) ASP Private Limited for
₹ 40.70 million.
Note 42: Loan

The Company has entered into a loan agreement with its step-down subsidiary company, Oracle (OFSS) BPO Services
Limited (the 'borrower') on March 1, 2019 ('effective date') whereby the Company has agreed to lend to the borrower; a
loan in principal sum of not greater than ₹ 250 million for the purpose of working capital requirements of the borrower.
The disbursement of the loan amount can be partial or in full depending on the requirement of the borrower. Simple
interest at an annual fixed rate of 9.50% shall be calculated on the unpaid principal amount of the loan drawn by the
borrower. As per the terms of the loan agreement, fixed interest rate is to be reviewed and adjusted annually. The
interest accrued shall be due and payable annually to the extent of loan drawn. The borrower may at its option prepay
the unpaid principal balance together with interest on the portion so prepaid accrued up to and including the date of
prepayment; without any premium or penalty. The unpaid principal shall be due and payable in full on or before two
years from the effective date ('maturity date'). An extension of the loan agreement can be done three months before
the maturity date based on terms and conditions as may be agreed between the parties.
During the year ended March 31, 2020, the Company has disbursed an amount of ₹ 106.00 million under the said
loan agreement. The interest accrued to the extent of loan drawn has been paid by the borrower. The maximum
amount of loan outstanding during the year ended March 31, 2020 is ₹ 106.00 million.
Note 43: Disclosure on revenue from operations

(a) Disaggregate revenue information
The table below presents disaggregated revenues from contracts with customers by geography, streams and type of
contract for each of our business segments.

Particulars Products Services Total
Revenues by geography
India 2,852.92 1.00 2,853.92
Outside India
Americas
United States of America 5,246.16 2,489.96 7,736.12
Rest of America 1,896.98 22.53 1,919.51
Europe 5,363.95 528.24 5,892.19
Asia Pacific 8,093.30 414.93 8,508.23
Middle East and Africa 8,214.91 130.20 8,345.11
31,668.22 3,586.86 35,255.08
Revenues by streams and type of contract
License fees 4,585.80 − 4,585.80
Maintenance fees 11,406.47 − 11,406.47
Consulting fees
Fixed price 9,239.52 1,030.24 10,269.76
Time and material basis 6,436.43 2,556.62 8,993.05
31,668.22 3,586.86 35,255.08

Revenues by geography
India 2,713.55 24.50 2,738.05
Outside India
Americas
United States of America 5,523.78 2,559.89 8,083.67
Rest of America 1,820.98 67.23 1,888.21
Europe 4,910.52 714.23 5,624.75
Asia Pacific 8,604.49 390.47 8,994.96
Middle East and Africa 8,313.03 166.30 8,479.33
31,886.35 3,922.62 35,808.97
Revenues by streams and type of contract
License fees 4,296.86 − 4,296.86
Maintenance fees 11,094.64 − 11,094.64
Consulting fees
Fixed price 9,856.73 1,122.01 10,978.74
Time and material basis 6,638.12 2,800.61 9,438.73
31,886.35 3,922.62 35,808.97
(b) During the year ended March 31, 2020, the Company recognized revenue of ₹ 818.84 million (March 31, 2019
- ₹ 613.54 million) from opening deferred revenue as of April 1, 2018.
(c) During the year ended March 31, 2020, the Company recognized revenue of ₹ 67.20 million (March 31, 2019
- ₹ 725.31 million) from performance obligations satisfied prior to April 1, 2018.
(d) Change in contract assets and contract liabilities are on account of transactions undertaken in the normal course
of business. In accordance with Ind AS 115, unbilled revenue of ₹ 1,165.28 million as at March 31, 2020
(March 31, 2019 - ₹ 702.08 million) has been classified as other current asset.
(e) Reconciliation of revenue recognized with contract price for the year
March 31, 2020 March 31, 2019
Revenue as per contracted price 35,290.13 35,951.64
Reduction towards discounts (35.05) (142.67)
(f) Remaining performance obligation

The Company has applied the practical expedient as provided in Ind AS 115 and excluded the disclosure relating to
remaining performance obligation for
i. contracts where the original expected duration is one year or less
ii. contracts where the revenue recognized corresponds directly with the value to the customer of the entity’s
performance completed to date. Typically this involves those contracts where invoicing is on time and material
basis.
Remaining performance obligation estimates are subject to change and are affected by several factors such as
terminations, changes in the scope of contracts, periodic revalidations of estimates and other macro economic factors.
The aggregate amount of transaction price allocated to the performance obligations that are unsatisfied (or partially
unsatisfied) as at March 31, 2020, after considering the practical expedient mentioned above is ₹ 10,921.80 million
(March 31, 2019 - ₹ 10,560.45 million), out of which 69% (March 31, 2019 - 66%) is expected to be recognized as
revenue within the next one year and the balance thereafter.
(g) Asset recognized from the costs to obtain a contract
The Company recognizes incremental costs of obtaining a contract with customers as an asset and discloses them
under "other assets" as deferred contract costs in the Standalone financial statements. Incremental costs of obtaining
contracts are those costs that the Company incurs to obtain a contract with the customer that would not have been
incurred if the contract had not been obtained. Such deferred contract costs assets are amortized over the benefit
period.
201
The Company has amortized deferred contract cost of ₹ 17.52 million for the year ended March 31, 2020
(March 31, 2019 - ₹ 18.71 million) and has closing balance of deferred contract cost asset of ₹ 35.53 million as at
March 31, 2020 (March 31, 2019 - ₹ 34.05 million).
(h) Effective April 1, 2018, the Company had adopted Ind AS 115 “Revenue from Contracts with Customers”
retrospectively with the cumulative effect recognized at the date of initial application. The cumulative effect of applying
Ind AS 115 primarily related to capitalization of incremental cost associated with contracts and has been adjusted to
the opening balance of retained earnings resulting in an increase of ₹ 26.26 million, net of tax.
Note 44: Segment information

Business segments are defined as a distinguishable component of an enterprise that is engaged in providing a group
of related products or services and that is subject to differing risks and returns and about which separate financial
information is available. This information is reviewed and evaluated regularly by the management in deciding how to
allocate resources and in assessing the performance.
The Company is organized by business segment and geographically. For management purposes the Company is
primarily organized on a worldwide basis into two business segments:
a) Product licenses and related activities ('Products') and
b) IT solutions and consulting services ('Services')
The business segments are the basis on which the Company reports its primary operational information to
management. Product licenses and related activities segment deals with various banking software products. The
related activities include enhancements, implementation and maintenance activities.
IT solutions and consulting services segment offers services spanning the entire lifecycle of applications used by
financial service institutions. The division’s portfolio includes Consulting, Application, Support and Technology
Services that help institutions improve efficiency, optimize costs, meet risk and compliance mandates and implement
IT solutions finely attuned to their business needs.
Segment revenue and expense:
Revenue is generated through licensing of software products, maintenance fees as well as by providing software
solutions to the customers including consulting services. The income and expenses which are not directly attributable
to a business segment are shown as unallocable income and expenses.
Segment assets and liabilities:
Segment assets include all operating assets used by a segment and consist principally of trade receivables net of
allowances, unbilled revenue, deposits for premises, property, plant and equipment and right-of-use asset. Segment
liabilities primarily includes trade payables, deferred revenues, advance from customer, employee benefit obligations,
lease liability and other liabilities. While most of such assets and liabilities can be directly attributed to individual
segments, the carrying amount of certain assets and liabilities used jointly by two or more segments is allocated to
the segment on a reasonable basis. Assets and liabilities that cannot be allocated between the segments are shown
as part of unallocable assets and liabilities.

Segment result 18,079.34 1,403.85 19,483.19

Segment result 18,423.89 1,347.84 19,771.73
Other information

Particulars Products Services Unallocable Total
Property, plant and equipment 309.42 47.81 9.25 366.48
Depreciation and amortization 697.04 103.41 31.27 831.72
Other non cash expenses 42.68 9.30 0.17 52.15
Segment assets 8,298.18 1,722.75 50,646.71 60,667.64
Segment liabilities 4,628.65 719.59 236.39 5,584.63
Equity − − 55,083.01 55,083.01

Particulars Products Services Unallocable Total
Property, plant and equipment 613.85 151.33 14.55 779.73
Depreciation and amortization 414.07 70.56 17.35 501.98
Other non cash expenses 194.18 24.14 168.85 387.17
Segment assets 8,889.18 1,783.53 33,781.04 44,453.75
Segment liabilities 4,342.68 582.11 725.22 5,650.01
Equity − − 38,803.74 38,803.74
The following table shows the distribution of the Company's sales by geographical market:
Year ended March 31, Year ended March 31,

2020 2019
India 2,853.92 8% 2,738.05 8%
Outside India
Americas
Rest of America 1,919.51 5% 1,888.21 5%
Europe 5,892.19 17% 5,624.75 16%
Asia Pacific 8,508.23 24% 8,994.96 25%
Middle East and Africa 8,345.11 24% 8,479.33 23%
35,255.08 100% 35,808.97 100%
Revenue of ₹ 28,018.43 million (March 31, 2019 - ₹ 27,574.41 million) is derived from a single customer in 'Products'
and 'Services' segment.
203
The following table shows the Company's non-current operating assets by geographical market:
As at March 31, 2020 As at March 31, 2019

India 10,601.39 96% 10,004.04 96%
Outside India
Europe 272.79 3% 249.17 3%
Asia Pacific 52.78 0% 104.70 1%
Middle East and Africa 62.55 1% 20.62 0%
10,989.51 100% 10,378.53 100%
Non-current assets for this purpose consist of property, plant and equipment, capital work-in-progress, right-of-use
asset, investment property, income tax assets (net) and other non-current assets.

DIN: 00969094

DIN: 02115514 ACS: 8547

May 14, 2020 May 14, 2020

Statement of cash flow
March 31, 2020 March 31, 2019
Cash flows from operating activities
Adjustments to reconcile profit before tax to cash (used in) provided by
operating activities:
Depreciation and amortization 831.72 501.98
Profit on sale of property, plant and equipment, net (0.23) (0.69)
Employee stock compensation expense 432.01 488.71
Provision for diminution in value of investment in subsidiary company − 168.77
Finance income (1,508.73) (1,173.47)
Effect of exchange rate changes in cash and cash equivalents (82.31) 1.78
Unrealized exchange (gain) loss, net (120.69) (111.21)
Finance cost 80.18 −
Deferred rent − (4.76)
Impairment loss (reversed) on financial assets (147.86) (629.89)
Impairment loss recognized on other financial assets 6.90 3.47
Bad debts 193.11 844.82
Operating Profit before Working Capital changes 19,769.89 19,953.66
Movements in working capital

(Increase) in other non-current financial assets (809.22) −
Decrease in other non-current assets 138.10 33.61
Decrease in trade receivables 846.80 1,255.50
Decrease in other current financial assets 748.03 793.99
(Increase) in other current assets (313.39) (842.40)
(Decrease) in non-current financial liabilities − (31.74)
Increase in non-current provisions 75.95 117.41
(Decrease) in trade payables (157.83) (8.05)
(Decrease) in other current financial liabilities (170.59) (2,642.01)
Increase in other current liabilities 72.65 89.88
Increase (decrease) in current provisions 58.45 (345.26)
Cash from operating activities 20,258.84 18,374.59
Payment of domestic and foreign taxes (5,412.15) (7,847.82)
Net cash provided by operating activities 14,846.69 10,526.77
Cash flows from investing activities

Purchase of property, plant and equipment (473.18) (739.04)
Proceeds from sale of property, plant and equipment 0.23 2.83
Income from investment in sublease 24.99 −
(Placement) refund of deposits for premises and others (0.26) 19.09
Loan to step-down subsidiary company (106.00) −
Investment in subsidiary company (20.28) −
205
Statement of cash flow
for the year ended March 31, 2020 (continued)
March 31, 2020 March 31, 2019
Bank fixed deposits having maturity of more than three months 17,220.00 22,290.54
matured
Bank fixed deposits having maturity of more than three months booked (33,095.00) (19,823.00)
Interest received 1,135.27 996.34
Net cash (used in) provided by investing activities (15,314.23) 2,746.76
Cash flows from financing activities

Proceeds from issue of shares under employee stock option plan 43.19 749.91
Equity dividend paid (36.08) (11,131.51)
Tax on equity dividend paid − (2,288.39)
Interest paid (80.18) −
Repayment of lease liability (261.51) −
Net cash (used in) financing activities (334.58) (12,669.99)
Net (decrease) increase in cash and cash equivalents (802.12) 603.54

Cash and cash equivalents at beginning of the year 2,713.65 2,111.89
Effect of exchange rate changes in cash and cash equivalents 82.31 (1.78)
Cash and cash equivalents at end of the year 1,993.84 2,713.65
Component of cash and cash equivalents

In current accounts 1,693.25 910.88
In deposit accounts with original maturity of less than three months 220.04 1,686.14
In unclaimed dividend account* 80.55 116.63
Total cash and cash equivalents at the end of the year [Refer note 9(a)] 1,993.84 2,713.65
*These balances will be utilized only towards the respective unpaid dividend.

DIN: 00969094

DIN: 02115514 ACS: 8547

May 14, 2020 May 14, 2020

Notice of annual general meeting
207
Notice of annual general meeting
NOTICE is hereby given that the Thirty First Annual General Meeting of Oracle Financial Services Software Limited
(“the Company”) will be held on Tuesday, August 18, 2020 at 5:00 p.m. through Video Conferencing (“VC”) / Other
Audio Visual Means (“OAVM”) to transact the following business:
Ordinary Business:
1. To receive, consider and adopt the audited financial statements (including the consolidated financial statements)
of the Company for the financial year ended March 31, 2020 and the Reports of the Board of Directors and
Auditors thereon.
2. To appoint a Director in place of Mr. Harinderjit Singh (DIN: 06628566) who retires by rotation and, being eligible,
offers himself for re-appointment.
3. To appoint a Director in place of Mr. Chaitanya Kamat (DIN: 00969094) who retires by rotation and, being eligible,
offers himself for re-appointment.
4. To confirm the payment of interim dividend of ₹ 180 per equity share already paid, as the final dividend for the
financial year ended March 31, 2020.
By Order of the Board of Directors

Onkarnath Banerjee
Company Secretary and Compliance Officer
Membership no. ACS 8547
Mumbai
June 24, 2020
Registered Office:
Tel. no. +91 22 6718 3000
Fax no. +91 22 6718 3001
CIN: L72200MH1989PLC053666

Notes:
a. In view of the continuing COVID-19 pandemic, the Ministry of Corporate Affairs (“MCA”) has vide its circular dated
May 5, 2020 read with circulars dated April 8, 2020 and April 13, 2020 (collectively referred to as “MCA Circulars”)
permitted the holding of the Annual General Meeting (“AGM”) through VC / OAVM, without the physical presence
of the Members at a common venue. In compliance with the provisions of the Companies Act, 2013 (“Act”),
Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015
(“Listing Regulations”) and MCA Circulars, the AGM of the Company is being held through VC / OAVM.
b. Instructions for Members for attending the AGM through VC / OAVM are as under:
1. Members will be able to attend the AGM through VC / OAVM or view the live webcast of AGM provided
by National Securities Depository Limited (“NSDL”) at https://www.evoting.nsdl.com by using their remote
e-voting login credentials and selecting the E-Voting Event Number (“EVEN”) for Company’s AGM.
2. Members who do not have the User ID and Password for e-voting or have forgotten the User ID and
Password may retrieve the same by following the remote e-voting instructions mentioned in this Notice.
Further, Members can also use the OTP based login for logging into the e-voting system of NSDL.
3. Facility of joining the AGM through VC / OAVM shall open 30 minutes before the time scheduled for the
AGM and will be available for Members on first-come-first-served basis.
4. Members can submit questions in advance with regard to the financial statements or any other matter to
be placed at the 31st AGM, from their registered e-mail address, mentioning their name, DP ID and Client
ID /folio number and mobile number, at the Company’s e-mail address, investors-vp-ofss_in_grp@oracle.
com on or before Thursday, August 13, 2020, 5:00 p.m. IST. Such questions by the Members shall be taken
up during the AGM and replied by the Company suitably.
5. Members who would like to speak during the AGM may register themselves as a speaker by sending a
request from their registered e-mail address mentioning their name, DP ID and Client ID/folio number,
PAN, mobile number at investors-vp-ofss_in_grp@oracle.com from Wednesday, August 12, 2020
(9:00 a.m. IST) to Thursday, August 13, 2020 (5:00 p.m. IST). Those Members who have registered
themselves as a speaker will only be allowed to express their views/ask questions during the AGM. The
Members are requested to send their questions in advance at the time of registration as speaker at the
AGM. The Company reserves the right to restrict the number of questions and number of speakers, as
appropriate to ensure the smooth conduct of the AGM.
6. Members who need assistance before or during the AGM, can contact NSDL on evoting@nsdl.co.in
1800-222-990 or contact Ms. Sarita Mote, Assistant Manager, NSDL at saritam@nsdl.co.in or call on
022-2499 4890.
c. In compliance with the aforesaid MCA Circulars and Securities and Exchange Board of India (“SEBI”) Circular
dated May 12, 2020, Notice of the AGM along with the Annual Report 2019-20 is being sent only through
electronic mode to those Members whose e-mail addresses are registered with the Company/ Depository
Participants. Members may note that the Notice and Annual Report 2019-20 is available on the Company’s website
www.oracle.com/financialservices, websites of the Stock Exchanges, i.e., BSE Limited and National Stock
Exchange of India Limited at www.bseindia.com and www.nseindia.com, respectively, and on the website of
NSDL at https://www.evoting.nsdl.com.
d. The Register of Members and the Share Transfer Books of the Company will remain closed from Wednesday,
August 12, 2020 to Tuesday, August 18, 2020, both days inclusive, for the purpose of the AGM.
e. The Company has appointed, Mr. Prashant Diwan, Practicing Company Secretary (Membership no. FCS 1403
and COP no. 1979) as the Scrutinizer to scrutinize the e-Voting process in a fair and transparent manner.
f. Since this AGM is being held pursuant to the MCA Circulars through VC / OAVM, physical attendance of Members
has been dispensed with. Accordingly, the facility for appointment of proxies by the Members will not be available
for the 31st AGM and hence, the Proxy Form and Attendance Slip are not annexed to this Notice.
g. Institutional / Corporate Shareholders (i.e., other than individuals, HUF, NRI, etc.) are required to send a
scanned copy (PDF/JPG Format) of its Board or governing body’s Resolution/Authorization, etc., authorizing
its representative to attend the AGM through VC / OAVM on its behalf and to vote through remote e-voting /
e-voting at the AGM. The said Resolution/Authorization shall be sent to the Scrutinizer by e-mail through its
registered e-mail address to pddiwan@yahoo.co.in with a copy marked to evoting@nsdl.co.in.
h. The Members can join the AGM through VC / OAVM mode 30 minutes before the scheduled time of
commencement of the AGM by following the procedure mentioned in the Notice. Members may note that the
VC / OAVM facility provided by NSDL allows participation of at least 1,000 Members on a first-come-first-served
basis. The large shareholders (i.e., shareholders holding 2% or more shareholding), promoters, institutional
investors, Directors, Key managerial personnel, the Chairpersons of the Audit Committee, Nomination and
Remuneration Committee and Stakeholders’ Relationship Committee, auditors, etc. can attend the AGM without
any restriction on account of first-come-first-served basis.
209
i. Members attending the AGM through VC / OAVM shall be counted for the purpose of reckoning the quorum
under Section 103 of the Act.
j. Additional information required as per Regulation 36 of the Listing Regulations and Secretarial Standard on
General Meetings (SS-2) issued by the Institute of Company Secretaries of India (“ICSI”), in respect of the
Directors seeking re-appointment at the AGM, forms an integral part of the Notice. The Directors have furnished
the requisite declarations and consent for their re-appointment.
k. The recorded transcript of the AGM shall be made available on the website of the Company at www.oracle.com/
financialservices as soon as possible after the AGM is over.
l. Members wishing to claim dividends which remain unclaimed are requested to correspond with Link Intime
India Private Limited, Registrar and Share Transfer Agents of the Company (“RTA”). Members are requested to
note that dividends not claimed within seven years from the date of transfer to the Company’s Unpaid Dividend
Account will, as per Section 124 of the Act, be transferred to the Investor Education and Protection Fund (“IEPF”).
m. The shares in respect of such unclaimed dividends are also liable to be transferred to the demat account of the
IEPF Authority. The Members are requested to claim their dividends from the Company within the stipulated
timeline. Details of Members whose unclaimed dividends / shares have been transferred to IEPF are available
on the Company’s website: www.oracle.com/financialservices. Members may claim the same by making an
application to the IEPF Authority in Form No. IEPF-5 available on www.iepf.gov.in.
n. Members who hold shares in physical form are requested to notify promptly any change in their addresses,
e-mail address, updates to their bank accounts and other relevant information to the Company’s RTA, having
its office at C 101, 247 Park, L B S Marg, Vikhroli (West), Mumbai 400083, Maharashtra, India, or on their e-mail
address at rnt.helpdesk@linkintime.co.in. Such Members are also requested to consider the option of holding
shares in dematerialized form.
o. Members are requested to address all communications to the RTA of the Company. Members may write to the
RTA or call RTA on +91-22-4918 6000 or e-mail to rnt.helpdesk@linkintime.co.in.
p. In terms of the Regulation 40 of Listing Regulations, securities of listed companies can only be transferred in
dematerialized form with effect from April 1, 2019. Accordingly, Members holding shares in physical form are
advised to dematerialize their shares.
q. Members holding shares in physical form are advised to make nomination(s) in respect of their shareholding in
the Company. Pursuant to Section 72 of the Act and Rule 19(1) of the Companies (Share Capital and Debentures)
Rules, 2014, the nomination form (Form No. SH-13) can be downloaded from the website of the RTA:
https://www.linkintime.co.in/client-downloads.html under the section ‘General → Nomination’.
r. Members who hold shares in demat mode are requested to make nomination in respect of their shareholding by
contacting their Depository Participants (“DP”). They should also notify promptly any change in their addresses,
bank particulars and other related information to their respective DP.
s. To support the ‘Green Initiative’, Members who have not yet registered their e-mail addresses are requested to
register the same with their DP, in case the shares are held by them in electronic form and with the RTA, in case
the shares are held by them in physical form.
t. SEBI has mandated submission of Permanent Account Number (“PAN”) by every participant in securities market.
Members holding shares in electronic form are, therefore, required to submit their PAN to their DP with whom
they are maintaining their demat accounts. Members holding shares in physical form can submit their PAN
details to the RTA.
u. Since the AGM will be held through VC / OAVM, the route map is not annexed in this Notice.
v. The instructions for remote e-Voting are as under:
i. In terms of Section 108 of the Act read with Rule 20 of the Companies (Management and Administration)
Rules, 2014, Regulation 44 of the Listing Regulations and Secretarial Standard on General Meetings (SS-2)
issued by the ICSI (each as amended or modified from time to time), the Company is providing facility to its
Members to cast their votes electronically through the electronic voting service facility provided by NSDL
on the items of business set forth in the Notice.
ii. The remote e-voting period commences on Thursday, August 13, 2020 (9:00 a.m. IST) and ends on Monday,
August 17, 2020 (5.00 p.m. IST). During this period, Members holding shares in the Company as on the
close of business hours of Tuesday, August 11, 2020, being the cut-off date fixed for determining voting
rights of Members entitled to participate in the remote e-voting process. During this period, the Members
holding their shares either in physical form or in dematerialized form may cast their votes electronically.
iii. In case of joint holders, the Member whose name appears as the first holder in the Register of Members of
the Company will be entitled to vote at the AGM.

iv. The instructions for remote e-Voting are as under:
Step 1: Log-in to NSDL e-Voting system at https://www.evoting.nsdl.com/
Step 2: Cast your vote electronically on NSDL e-Voting system
Details on Step 1 is mentioned below:
How to Log-in to NSDL e-Voting website?
1. Visit the e-Voting website of NSDL. Open web browser by typing the following URL: https://www.
evoting.nsdl.com/ either on a Personal Computer or on a mobile.
2. Once the home page of e-Voting system is launched, click on the icon “Login” which is available
under ‘Shareholders’ section.
3. A new screen will open. You will have to enter your User ID, your Password and a Verification Code as
shown on the screen.
Alternatively, if you are registered for NSDL e-services i.e. IDEAS, you can log-in at https://eservices.
nsdl.com/ with your existing IDEAS login. Once you log-in to NSDL e-services after using your log-in
credentials, click on e-Voting and you can proceed to Step 2 i.e. Cast your vote electronically.
4. Your User ID details are given below:
Manner of holding shares i.e. Your User ID is:

Demat (NSDL or CDSL) or Physical
a) For Members who hold shares 8 Character DP ID followed by 8 Digit Client ID

in demat account with NSDL
For example if your DP ID is IN300*** and Client ID is 12****** then
your user ID is IN300***12******
b) For Members who hold shares 16 Digit Beneficiary ID

in demat account with CDSL
For example if your Beneficiary ID is 12************** then your
user ID is 12**************
c) For Members holding shares in EVEN Number followed by Folio Number registered with the
physical form company
For example if folio number is 001*** and EVEN is 101456 then user
ID is 101456001***
5. Your password details are given below:
a) If you are already registered for e-Voting, then you can use your existing password to login and
cast your vote.
b) If you are using NSDL e-Voting system for the first time, you will need to retrieve the ‘initial
password’ which was communicated to you. Once you retrieve your ‘initial password’, you need
to enter the ‘initial password’ and the system will force you to change your password.
c) How to retrieve your ‘initial password’?

i) If your e-mail ID is registered in your demat account or with the company, your ‘initial
password’ is communicated to you on your e-mail ID. Trace the e-mail sent to you from
NSDL from your mailbox. Open the e-mail and open the attachment i.e. a .pdf file. Open
the .pdf file. The password to open the .pdf file is your 8 digit client ID for NSDL account,
last 8 digits of client ID for CDSL account or folio number for shares held in physical form.
The .pdf file contains your ‘User ID’ and your ‘initial password’.
ii) If your e-mail ID is not registered, your ‘initial password’ is communicated to you on your
postal address.
6. If you are unable to retrieve or have not received the “Initial password” or have forgotten your password:
a) Click on “Forgot User Details / Password?”(If you are holding shares in your demat account
with NSDL or CDSL) option available on www.evoting.nsdl.com.
b) “Physical User Reset Password?” (If you are holding shares in physical mode) option
available on www.evoting.nsdl.com.
211
If you are still unable to get the password by aforesaid two options, you can send a request
at evoting@nsdl.co.in mentioning your demat account number / folio number, your PAN,
your name and your registered address.
7. After entering your password, tick on Agree to “Terms and Conditions” by selecting on the check box.
8. Now, you will have to click on “Login” button.
9. After you click on the “Login” button, Home page of e-Voting will open.
Details on Step 2 is given below:
How to cast your vote electronically on NSDL e-voting system?
1. After successful login at Step 1, you will be able to see the Home page of e-Voting. Click on e-Voting. Then,
click on Active Voting Cycles.
2. After clicking Active Voting Cycles, you will be able to see all the companies “EVEN” in which you are
holding shares and whose voting cycle is in active status.
3. Select “EVEN” of company for which you wish to cast your vote.
4. Now you are ready for e-Voting as the Voting page opens.
5. Cast your vote by selecting appropriate options i.e. assent or dissent, verify / modify the number of shares
for which you wish to cast your vote and click on “Submit” and also “Confirm” when prompted.
6. Upon confirmation, the message “Vote cast successfully” will be displayed.
7. You can also take the printout of the votes cast by you by clicking on the print option on the confirmation page.
8. Once you confirm your vote on the resolution, you will not be allowed to modify your vote.
w. Instructions for Members for e-voting during the AGM are as under:
1. The procedure for e-Voting during the AGM is same as the instructions mentioned above for remote
e-voting.
2. Only those Members who will be present in the AGM through VC / OAVM facility and have not casted their
vote through remote e-Voting and are otherwise not barred from doing so, shall be eligible to vote through
e-Voting system during the AGM.
3. Members who have voted through remote e-Voting will be eligible to attend the AGM. However, they will
not be eligible to vote at the AGM.
4. The details of the person who may be contacted for any grievances connected with the facility for e-Voting
on the day of the AGM shall be the same person mentioned for remote e-voting.
General Guidelines for shareholders:
1. It is strongly recommended not to share your password with any other person and take utmost care to
keep your password confidential. Login to the e-Voting website will be disabled upon five unsuccessful
attempts to key in the correct password. In such an event, you will need to go through the “Forgot User
Details / Password?” or “Physical User Reset Password?” option available on www.evoting.nsdl.com to reset
the password.
2. In case of any queries with the use of technology, you may refer the Frequently Asked Questions (FAQs)
for Shareholders and e-voting user manual for Shareholders available at the download section of
www.evoting.nsdl.com or call on toll free no.: 1800-222-990 or send a request at evoting@nsdl.co.in.
3. The Scrutinizer shall, immediately after the conclusion of voting at the AGM, count the votes cast at the AGM
and thereafter unblock the votes cast through remote e-Voting in the presence of at least two witnesses
not in employment of the Company. The Scrutinizer shall submit a consolidated Scrutinizer’s Report of the
total votes cast in favor of or against, if any, not later than three days after the conclusion of the AGM to the
Chairperson of the Company. The Chairperson, or any other person authorized by the Chairperson, shall
declare the result of the voting forthwith.
4. The results declared along with the Scrutinizer’s Report shall be placed on the Company’s website
www.oracle.com/financialservices and on the website of NSDL at https://www.evoting.nsdl.com , after the
result is declared by the Chairperson, and the same shall be communicated to BSE Limited and National Stock
Exchange of India Limited, where the equity shares of the Company are listed.
5. It is recommended that Members use internet with a good speed to avoid any disturbance during the AGM.
Please note that Members connecting from mobile devices or tablets or through laptop etc. connecting via
mobile hotspot, may experience audio / video loss due to fluctuation in their respective network. It is therefore
recommended to use stable Wi-Fi or LAN connection to avoid any glitches.

ADDITIONAL INFORMATION OF THE DIRECTORS SEEKING RE-APPOINTMENT AT THE THIRTY FIRST
ANNUAL GENERAL MEETING PURSUANT TO REGULATION 26 AND 36 OF THE SECURITIES AND EXCHANGE
BOARD OF INDIA (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS) REGULATIONS, 2015 AND
SECRETARIAL STANDARD - 2 ON GENERAL MEETINGS
Particulars Mr. Harinderjit Singh Mr. Chaitanya Kamat

Brief Profile Mr. Harinderjit Singh (Sonny Singh) is senior Mr. Chaitanya Kamat is CEO and managing
vice president and general manager of Oracle’s director of Oracle Financial Services Software
Financial Services Global Business Unit. In this Limited, a majority-owned subsidiary of
role, he is responsible for a global organization Oracle Corporation and an integral part of
focused on Sales, Consulting, Engineering Oracle’s Financial Services Global Business
and Support, of Oracle’s products focused on Unit. Mr. Kamat has more than 35 years of
Banking, Insurance and Capital Markets. financial services, consulting and business
transformation experience. His expertise in
During his 28-year Oracle career, Mr. Singh banking transformation has driven strong
has been instrumental in leading the creation topline impact for both the products and
and execution of highly successful corporate, services businesses at Oracle Financial
business unit, and new market strategies Services Software. He is passionate in
that produce strong topline impact across all nurturing a culture of operational excellence
of Oracle’s hardware, software, and services and customer delight.
product lines.
Prior to joining Oracle, Mr. Kamat was
Prior to his current role, he was the senior vice managing director at STG, a leading private
president of Oracle’s Industries business unit, equity firm focused on investing in software
which is responsible for Oracle’s go-to-market and enterprise services companies. At STG,
strategy. In this role, his organization was he was responsible for the transformation
responsible for product marketing, competitive and operations of its portfolio companies
intelligence, field enablement, deal acceleration, with a specific focus on their use of global
and mergers-and-acquisition integration across operating models.
Oracle’s entire product and services portfolio. In
addition, his organization delivered all of Oracle’s Earlier, Mr. Kamat worked as the CEO of a retail
strategic customer engagement capabilities. financial services startup and at Accenture.
These include solutions and expertise for all Joining Accenture in 1986, he worked across
industry vertical segments, the Oracle Insight Accenture locations in India, United States,
program, which is Oracle’s branded value Sweden, Hungary, and the Philippines in a
engineering competency, and Oracle Solution range of business consulting and large scale
Centers. Additionally, his organization provided systems integration engagements. In his last
the business strategy, tools, and programs role at Accenture, Mr. Kamat was managing
for Oracle’s key accounts and midsize market partner of Accenture’s India Delivery Centre
segments. Prior to leading the Oracle Industries Network, which he was responsible for
Business Unit, Mr. Singh was group vice establishing from scratch and growing to a
president for Oracle Consulting, where he led 13,000 strong unit serving more than 200
Oracle’s services business in North America global clients.
Strategic Accounts.
Age 55 Years 58 Years
Date of July 10, 2013 October 25, 2010
Appointment
Qualifications Mr. Harinderjit Singh holds a master’s degree in Mr. Chaitanya Kamat obtained his masters
industrial engineering from Stanford University in computer science from the University
and a bachelor’s degree in mechanical of Bombay and a post graduate diploma in
engineering from Punjab University, India. management from the Indian Institute of
Management, Ahmedabad.
Expertise in Over three decades of experience in managing Having over thirty five years of financial
specific Services, global technology businesses. Heads the services, product engineering, consulting
functional areas Financial Services Global Business Unit in Oracle and business transformation experience
Corporation. with over two decades of leadership and
board level roles in both national and global
organizations.
213
Particulars Mr. Harinderjit Singh Mr. Chaitanya Kamat
Directorships Children’s Discovery Museum, San Jose NA
held in other California
Companies
No. of Shares NA 62,375
held in the
Company as on
date
Mr. Harinderjit Singh & Mr. Chaitanya Kamat do not hold any position as a Member/Chairperson of Committees of
other Companies.
For other details, such as the number of meetings of the Board attended during the year, remuneration drawn and
relationship with other directors and key managerial personnel, in respect of the above directors, please refer to the
Corporate Governance Report which is a part of this Annual Report.

NOTES
215
NOTES

Registered Office
Goregaon (East), Mumbai 400063, Maharashtra, India
CIN: L72200MH1989PLC053666
Investor Enquiries
Tele + 91.22.6718.3000
Fax + 91.22.6718.3001
oracle.com/financialservices
Copyright © 2020, Oracle Financial Services Software Limited and/or its affiliates. All rights reserved.
Oracle is a registered trademark of Oracle and/or its affiliates. Other names may be trademarks of their respective owners.

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Oracle Financial Services Software Limited Oracle Park phone +91 22 6718 3000

Off Western Express Highway fax +91 22 6718 3001

July 18, 2020

Asst. Vice President Asst. General Manager

Scrip Code OFSS Scrip Code 532466

Sub: Annual report 2019-20

Pursuant to Regulation 34(1) of SEBI (Listing Obligations and Disclosure Requirements)

This is for your information and records.

Encl: Annual Report 2019-20

Oracle Financial Services Software – Annual Report 2019-20

Ten year history 4

Corporate governance report 36

Management’s discussion and analysis 51

Unconsolidated financials 141

Notice of annual general meeting 207

Annual General Meeting

Operating revenue Operating income

Net income Earnings per share

Customers serviced ... in countries

Oracle Financial Services Software – Annual Report 2019-20

Company secretary and Bankers

Legal counsel Management team

Registered office Bindu Venkatesh Rajendra Potdar

Oracle Financial Services Software Edwin Niranjan Moses Ravikumar V

CIN: L72200MH1989PLC053666 H S Teji Surendra Shukla

Karthick R Prasad Tushar Chitra

India Asia Pacific

Oracle (OFSS) Processing Services Limited

SDF-1, Unit 12, SEEPZ - SEZ

C/o Embassy Business Park

Oracle (OFSS) BPO Services Limited

DLF Infinity Tower A, 3rd Floor

Mantas India Private Limited

Oracle Financial Services Software – Annual Report 2019-20

Europe, Middle East & Africa (EMEA) Americas

Oracle Financial Services Software SA

Oracle Financial Services Software Limited

Park Rotana, Level One, Office 108

The Edge Building

ISP Internet (Mauritius) Company

As per Unconsolidated financial statements: (Amounts in ₹ million)

Oracle Financial Services Software – Annual Report 2019-20

Particulars of loans, guarantees or investments

Extract of annual return

Directors and key managerial personnel

Number of meetings of the Board

Particulars Details Website link for policy / details

Related party transactions

Oracle Financial Services Software – Annual Report 2019-20

Research and development

Statutory Auditors’ report

Secretarial audit report

Business responsibility report

Particulars Scheme Scheme Scheme OFSS Stock OFSS Stock Total

Oracle Financial Services Software – Annual Report 2019-20

ii. Senior Managerial Personnel:

Particulars Shares arising Weighted Shares arising Weighted

Exercise prices Number of Weighted Weighted

Options /OSUs vested and exercisable 5 143,147 5 6.3