Firstsource Solutions Ltd. - Interim / Quarterly Report 2022

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3[rd] August 2022

To:

National Stock Exchange of BSE Limited (Scrip Code: India Limited (Scrip Code: FSL) 532809) Exchange Plaza, Phiroze Jeejeebhoy Towers, Plot no. C/1, G Block, Dalal Street, Bandra-Kurla Complex Mumbai - 400 001 Bandra (East), Mumbai - 400 051

Dear Madam/ Sir,

Sub: Declaration of Audited Standalone and Consolidated financial results for the quarter ended 30[th] June 2022 (Q1 FY2022-23) and Outcome of the Board Meeting

We wish to inform you that the Board of Directors of the Company at their meeting held today i.e. 3[rd] August 2022, inter-alia approved the Audited Standalone and Consolidated Financial Results for the quarter ended 30[th] June 2022, copies of which are enclosed herewith along with copies of Auditors' Reports thereon and a copy of Press release relating to the financial results.

Kindly note that the Statutory auditors have issued the auditors reports without UDIN generation due to technology disruption on the ICAI portal. Revised reports with UDIN will be issued to the Company subsequently. UDIN can be generated upto 60 days from the date of signing of the report”

The Meeting commenced at 11.00 a.m. and concluded at 12.05 p.m.

We request you to take the above on record.

Thanking you,

For Firstsource Solutions Limited

POOJA SURESH Digitally signed by POOJA SURESH NAMBIAR NAMBIAR Date: 2022.08.03 12:21:47 +05'30' Pooja Nambiar Company Secretary Encl.: A/a

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Chartered Accountants One International Center Tower 3, 27[th] - 32[nd] Floor Senapati Bapat Marg Elphinstone Road (West) Mumbai – 400 013 Maharashtra, India

Deloitte Haskins & Sells LLP

Tele: + 91 22 6185 4000 Fax: +91 22 6185 4001

INDEPENDENT AUDITOR’S REPORT ON AUDIT OF INTERIM CONSOLIDATED FINANCIAL RESULTS

TO THE BOARD OF DIRECTORS OF FIRSTSOURCE SOLUTIONS LIMITED

Opinion

We have audited the Consolidated Financial Results for the quarter ended 30 June 2022 included in the accompanying ‘Statement of Audited Consolidated Financial Results for the Quarter Ended 30 June 2022’ of FIRSTSOURCE SOLUTIONS LIMITED (the “Company”) and its subsidiaries (the Company and its subsidiaries together referred to as the “Group”), and its share of the net profit after tax and total comprehensive income of its associate for the quarter then ended 30 June 2022 (the “Statement”), being submitted by the Company pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (the “Listing Regulations”).

In our opinion and to the best of our information and according to the explanations given to us, the Consolidated Financial Results for the quarter ended 30 June 2022:

(i) includes the results of the following entities:

Subsidiaries:

Firstsource Group USA, Inc.
Firstsource Solutions UK Limited
Firstsource Solutions S.A.
Firstsource Advantage LLC
Firstsource Business Process Services, LLC
Firstsource Health Plans and Healthcare Services, LLC (formerly Firstsource Transaction Services LLC ('FTS'))
Firstsource Process Management Services Limited
Firstsource BPO Ireland Limited
Firstsource Dialog Solutions (Private) Limited
One Advantage LLC
MedAssist Holdings LLC
Firstsource Solutions USA, LLC
Sourcepoint, Inc.
Sourcepoint Fulfillment Services, Inc.
PatientMatters LLC
Kramer Technologies, LLC
Medical Advocacy Services for Healthcare, Inc.
Firstsource Employee Benefit Trust
The Stonehill Group,Inc. (acquired on 9 November 2021)

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American Recovery Services, Inc. (acquired on 29 December 2021)
Firstsource Solutions México, S. de R.L. de C.V (incorporated on 13 December 2021)

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Regd. Office. One International Center, Tower 3, 32[nd] Floor, Senapati Bapat Marg, Elphinstone Road (West), Mumbai – 400 013, Maharashtra, India. (LLP Identification No. AAB-8737)

Deloitte

Haskins & Sells LLP

Associate:

Nanobi Data and Analytics Private Limited
(ii) is presented in accordance with the requirements of Regulation 33 of the Listing Regulations; and
(iii) gives a true and fair view in conformity with the recognition and measurement principles laid down in the Indian Accounting Standard 34 ‘Interim Financial Reporting’ (‘Ind AS 34’) and other accounting principles generally accepted in India of the consolidated net profit and consolidated total comprehensive income and other financial information of the Group for the quarter ended 30 June 2022.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (‘SA’s) specified under Section 143(10) of the Companies Act, 2013 (the ‘Act’). Our responsibilities under those Standards are further described in Auditor’s Responsibilities for audit of the Consolidated Financial Results for the quarter ended 30 June 2022 section of our report. We are independent of the Group and its associate in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (‘ICAI’) together with the ethical requirements that are relevant to our audit of the Consolidated Financial Results for the quarter ended 30 June 2022 under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI’s Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion.

Management’s Responsibilities for the Statement

This Statement, which includes the Consolidated Financial Results is the responsibility of the Company’s Board of Directors and has been approved by them for the issuance. The Statement has been compiled from the related audited condensed interim consolidated financial statements as at and for the quarter ended 30 June 2022. This responsibility includes the preparation and presentation of the Consolidated Financial Results for the quarter ended 30 June 2022 that give a true and fair view of the consolidated net profit and consolidated other comprehensive income and other financial information of the Group including its associate in accordance with the recognition and measurement principles laid down in the Ind AS 34, prescribed under Section 133 of the Act, read with relevant rules issued thereunder and other accounting principles generally accepted in India and in compliance with Regulation 33 of the Listing Regulations.

The respective Boards of Directors of the companies included in the Group and of its associate are responsible for maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Group and its associate 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 respective financial results 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 Results by the Directors of the Company, as aforesaid.

In preparing the Consolidated Financial Results, the respective Boards of Directors of the companies included in the Group and of its associate are responsible for assessing the ability of the respective subsidiaries and of its associate to continue as a going concern, disclosing, as applicable, matters

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Deloitte

Haskins & Sells LLP

related to going concern and using the going concern basis of accounting unless the respective Board of Directors either intends to liquidate their respective entities or to cease operations, or has no realistic alternative but to do so.

The respective Boards of Directors of the companies included in the Group and of its associate are responsible for overseeing the financial reporting process of the Group and of its associate.

Auditor’s Responsibilities for audit of the Consolidated Financial Results for the quarter ended 30 June 2022

Our objectives are to obtain reasonable assurance about whether the Consolidated Financial Results for the quarter ended 30 June 2022 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 SAs 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 Financial Results.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the Consolidated Financial Results, 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.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Board of Directors.
Evaluate the appropriateness and reasonableness of disclosures made by the Board of Directors in terms of the requirements specified under Regulation 33 of the Listing Regulations.
Conclude on the appropriateness of the Board of Directors’ 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 and its associate 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 Financial Results 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 and its associate to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the Consolidated Financial Results, including the disclosures, and whether the Consolidated Financial Results represent the underlying transactions and events in a manner that achieves fair presentation.
Perform procedures in accordance with the circular issued by the SEBI under Regulation 33(8) of the Listing Regulations to the extent applicable.

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Deloitte

Haskins & Sells LLP

Obtain sufficient appropriate audit evidence regarding the Standalone Financial Results, entities within the Group and its associate to express an opinion on the Consolidated Financial Results. We are responsible for the direction, supervision and performance of the audit of financial information of entities within the Group included in the Consolidated Financial Results of which we are the independent auditors. We have evaluated the materiality of revenue, net profit and total assets of an associate whose unaudited interim financial information was included in the Consolidated Financial Results of the Group and have concluded that those were not material to the Group. We remain solely responsible for our audit opinion.

Materiality is the magnitude of misstatements in the Consolidated Financial Results that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the Consolidated Financial Results may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the Consolidated Financial Results.

We communicate with those charged with governance of the Company and such other entities included in the Consolidated Financial Results 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.

For DELOITTE HASKINS & SELLS LLP

Chartered Accountants

(Firm’s Registration No. 117366W/W-100018)

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Sanjiv V. Pilgaonkar Partner (Membership No. 39826) UDIN:

Mumbai, 3 August 2022

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Firstsource Solutions Limited

AUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER ENDED JUNE 30, 2022

CIN: L64202MH2001PLC134147

Tel: + 91 22 66660888 Fax: + 91 22 6666 0887 web: www.firstsource.com, email:[email protected]

Income
Revenue from operations
Other operating income, net
Other income, net
Total income
Expenses
Employee benefits expense
Depreciation and amortisation
Finance costs
Other expenses
Total expenses
Profit before tax and share in net profit / (loss) of associate
Share in net profit of associate
Profit before tax
Tax expense
Current tax
Deferred tax
Net profit after tax
Other comprehensive income, net of taxes
Total comprehensive income
Profit attributable to:
Owners of the equity
Non - controlling interest
Total comprehensive income attributable to:
Owners of the equity
Non - controlling interest
Paid-up equity share capital (Face value per share of Rs 10)
Other Equity
Earning per share (Rs) : (Face value per share of Rs 10)
-Basic
-Diluted
Notes to financial results :
Particulars

(Rs. in millions, except per share data and per equity data)
Year ended
June 30
March 31
June 30
March 31
2022
2022
2021
2022
(Audited)
(Audited)
(Audited)
(Audited)
14,524.45
15,238.78
14,780.09
58,657.40
199.13
200.50
67.93
554.13
63.51
(3.85)
(0.13)
5.55
14,787.09
15,435.43
14,847.89
59,217.08
9,597.33
9,844.80
10,218.83
39,467.57
639.08
696.75
583.75
2,493.73
186.66
187.61
145.50
639.39
3,316.48
3,146.25
2,245.89
10,145.38
13,739.55
13,875.41
13,193.97
52,746.07
1,047.54
1,560.02
1,653.92
6,471.01
-
-
-
-
1,047.54
1,560.02
1,653.92
6,471.01
134.89
137.18
224.69
741.55
61.78
98.96
92.42
364.16
850.87
1,323.88
1,336.81
5,365.30
708.85
291.56
285.56
812.24
1,559.72
1,615.44
1,622.37
6,177.54
850.90
1,323.94
1,345.10
5,373.74
(0.03)
(0.06)
(8.29)
(8.44)
850.87
1,323.88
1,336.81
5,365.30
1,560.29
1,616.94
1,630.66
6,187.58
(0.57)
(1.50)
(8.29)
(10.04)
1,559.72
1,615.44
1,622.37
6,177.54
6,969.91
6,969.91
6,966.51
6,969.91
23,359.53
1.25
1.95
1.98
7.90
1.21
1.88
1.91
7.62
Quarter ended

The audited condensed interim consolidated financial statements for the quarter ended June 30, 2022 have been taken on record by the Board of Directors at its meeting held on August 3, 2022. The statutory auditors have expressed an unmodified audit opinion. The information presented above is extracted from the audited condensed interim consolidated financial statements. These financial statements are prepared in accordance with the Indian Accounting Standards 34 ('Ind AS 34') 'Interim Financial Reporting', under the historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values, as prescribed under Section 133 of the Companies Act, 2013 read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and relevant amendment rules issued thereunder.
On March 23, 2022, the Ministry of Company Affairs notified amendments to certain Indian Accounting Standards vide the Companies (Indian Accounting Standards) Amendment Rules, 2022 effective for annual periods beginning on or after April 1, 2022. The Rules 2022 notified an amendment to Ind AS 37 Provisions, Contingent Liabilities and Contingent Assets AS Contracts Cost of Fulfilling a regarding costs a Company should include as the cost of fulfilling a contract when assessing whether a contract is onerous. The amendment extends the definition of cost of fulfilling a contract to include allocation of other costs that relate directly to fulfilling a contract. The adoption of this amendment as at April 1, 2022 has resulted in a reduction of Rs. 783.41 mn (net of deferred tax) in the opening Retained Earnings with a corresponding provision for onerous contracts as prescribed in the Rules 2022.

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Firstsource Solutions Limited

AUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER ENDED JUNE 30, 2022

(Rs in millions)

3. Standalone Information (Audited)

Total income
Net profit before taxation
4. Segment Reporting - Consolidated audited
Segment revenue
a) Banking and Financial Services
b) Healthcare
c) Communication, Media and Technology
d) Diverse Industries
Total
Less: Inter-segment revenue
Net segment revenue
Segment results before tax and finance costs
a) Banking and Financial Services
b) Healthcare
c) Communication, Media and Technology
d) Diverse Industries
Total
i) Finance costs
iii) Share in net profit / (loss) of associate
Profit before tax and other comprehensive income
ii) Other unallocable expenditure net of
unallocable income
Particulars
Net profit after taxation and before other comprehensive income
Particulars

Year ended
June 30
March 31
June 30
March 31
2022
2022
2021
2022
3,657.66
3,869.25
4,090.95
16,227.56
810.35
919.49
1,203.90
4,533.58
694.09
805.06
1,014.68
3,875.89
(Rs in millions)
Year ended
June 30
March 31
June 30
March 31
2022
2022
2021
2022
(Audited)
(Audited)
(Audited)
(Audited)
6,725.69
7,462.51
7,631.55
29,020.16
4,666.49
4,614.27
3,950.61
17,141.46
2,926.79
2,904.93
2,900.97
11,406.94
205.48
257.07
296.96
1,088.84
14,524.45
15,238.78
14,780.09
58,657.40
-
-
-
-
14,524.45
15,238.78
14,780.09
58,657.40
807.44
1,000.23
1,501.91
5,074.52
697.31
1,070.41
646.07
3,060.93
513.52
516.18
423.93
1,850.96
17.50
8.57
5.63
43.79
2,035.77
2,595.39
2,577.54
10,030.20
(186.66)
(187.61)
(145.50)
(639.39)
(801.57)
(847.76)
(778.12)
(2,919.80)
-
-
-
-
1,047.54
1,560.02
1,653.92
6,471.01
Quarter ended
Quarter ended

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Note on segment information Business segments

Operating segments are defined as components of an enterprise for which discrete financial information is available that is evaluated regularly by the Chief Operating Decision Maker in deciding how to allocate resources and in assessing performance. Operating segments are identified based on the internal organization at the Balance Sheet date. With the objective of internal financial reporting and decision making of the Group, the CODM has reviewed the manner in which the Group views the business risks and returns and monitors its operations. Accordingly, the group has identified business segment which comprises of Banking and Financial Services, Healthcare, Communication, Media and Technology and Diverse Industries.

Revenues and expenses directly attributable to the segments are reported under each reportable segment. The accounting principles used in the preparation of the segment information are consistently applied to record revenue and expenditure in individual business segments.

Assets and liabilities used in the business are not directly identified to any of the operating segments, as these are used interchangeably between segments. Allocation of such assets and liabilities is not practicable and any forced allocation would not result in any meaningful segregation. Hence assets and liabilities have not been identified to any of the reportable segments by the Group.

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By order of the Board
For Firstsource Solutions Limited
Mumbai, India Vipul Khanna
August 3, 2022 Managing Director and CEO
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Deloitte Haskins & Sells LLP

Chartered Accountants One International Center Tower 3, 27[th] - 32[nd] Floor Senapati Bapat Marg Elphinstone Road (West) Mumbai – 400 013 Maharashtra, India

Tele: + 91 22 6185 4000 Fax: +91 22 6185 4001

INDEPENDENT AUDITOR'S REPORT ON AUDIT OF INTERIM STANDALONE FINANCIAL RESULTS

TO THE BOARD OF DIRECTORS OF FIRSTSOURCE SOLUTIONS LIMITED

Opinion

We have audited the Standalone Financial Results for the quarter ended 30 June 2022 (“Standalone Financial Results”) included in the accompanying ‘Statement of Standalone Audited Financial Results for the Quarter Ended 30 June 2022 of FIRSTSOURCE SOLUTIONS LIMITED (the “Company”), (the “Statement”), being submitted by the Company pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (the “Listing Regulations”).

In our opinion and to the best of our information and according to the explanations given to us, the Standalone Financial Results for the quarter ended 30 June 2022:

i. is presented in accordance with the requirements of Regulation 33 of the Listing Regulations; and
ii. gives a true and fair view in conformity with the recognition and measurement principles laid down in the Indian Accounting Standard 34 'Interim Financial Reporting' ('Ind AS 34') and other accounting principles generally accepted in India of the net profit and total comprehensive income and other financial information of the Company for the quarter then ended.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (“SA”s) specified under Section 143(10) of the Companies Act, 2013 (the “Act”). Our responsibilities under those Standards are further described in Auditor’s Responsibilities for Audit of the Standalone Financial Results for the quarter ended 30 June 2022 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 (the “ICAI”) together with the ethical requirements that are relevant to our audit of the Standalone Financial Results for the quarter ended 30 June 2022 under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI’s Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion.

Management’s Responsibilities for the Statement

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This Statement, which includes the Standalone Financial Results is the responsibility of the Company’s Board of Directors, and has been approved by them for the issuance. The Statement has been compiled from the related audited interim condensed standalone financial statements as at and for the quarter ended 30 June 2022. This responsibility includes the preparation and presentation of the Standalone Financial Results for the quarter 30 June 2022 that give a true and fair view of the net profit and other comprehensive income and other financial information in accordance with the recognition and measurement principles laid down in the Ind AS 34, prescribed under Section 133 of

Page 1 of 3

Regd. Office. One International Center, Tower 3, 32[nd] Floor, Senapati Bapat Marg, Elphinstone Road (West), Mumbai – 400 013, Maharashtra, India. (LLP Identification No. AAB-8737)

Deloitte

Haskins & Sells LLP

the Act read with relevant rules issued thereunder and other accounting principles generally accepted in India and in compliance with Regulation 33 of the Listing Regulations. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding 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 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 Standalone Financial Results that give a true and fair view and is free from material misstatement, whether due to fraud or error.

In preparing the Standalone Financial Results, the Board of Directors are 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 the 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 financial reporting process of the Company.

Auditor’s Responsibilities for audit of the Standalone Financial Results for the quarter ended 30 June 2022

Our objectives are to obtain reasonable assurance about whether the Standalone Financial Results for the quarter ended 30 June 2022 as a whole is 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 SAs 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 the Standalone Financial Results.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the Standalone Financial Results, 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.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Board of Directors.
Evaluate the appropriateness and reasonableness of disclosures made by the Board of Directors in terms of the requirements specified under Regulation 33 of the Listing Regulations.
Conclude on the appropriateness of the Board of Directors’ 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 Statement or, if such

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Page 2 of 3

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Haskins & Sells LLP

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.

Evaluate the overall presentation, structure and content of the Standalone Financial Results, including the disclosures, and whether the Standalone Financial Results represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the Standalone Financial Results of the Company to express an opinion on the Standalone Financial Results.

Materiality is the magnitude of misstatements in the Standalone Financial Results that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the Standalone Financial Results may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the Standalone Financial Results.

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.

For DELOITTE HASKINS & SELLS LLP

Chartered Accountants

(Firm’s Registration No. 117366W/W-100018)

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Sanjiv V. Pilgaonkar Partner (Membership No. 39826) UDIN:

Mumbai, 3 August 2022

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Firstsource Solutions Limited

AUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER ENDED JUNE 30, 2022

CIN: L64202MH2001PLC134147

Tel: + 91 22 66660888 Fax: + 91 22 6666 0887 web: www.firstsource.com, email:[email protected]

Income
Revenue from operations
Other operating income, net
Other income, net
Total income
Expenses
Employee benefits expense
Depreciation and amortisation
Finance costs
Other expenses
Total expenses
Profit before tax
Tax expense
Current tax
Deferred tax
Net profit after tax
Other comprehensive income, net of taxes
Total comprehensive income
Paid-up equity share capital (Face value per share of Rs 10)
Other equity
Earning per share (Rs): (Face value per share of Rs 10)
-Basic
-Diluted
Particulars

(Rs in millions, except per share data and per equity data)
Year ended
June 30
March 31
June 30
March 31
2022
2022
2021
2022
(Audited)
(Audited)
(Audited)
(Audited)
3,382.66
3,576.62
3,946.73
15,356.00
206.80
212.92
70.82
564.06
68.20
79.71
73.40
307.50
3,657.66
3,869.25
4,090.95
16,227.56
1,878.38
1,993.97
1,983.64
8,000.45
233.98
217.01
218.67
881.98
43.79
43.88
54.96
200.68
691.16
694.90
629.78
2,610.87
2,847.31
2,949.76
2,887.05
11,693.98
810.35
919.49
1,203.90
4,533.58
127.26
170.18
188.86
747.86
(11.00)
(55.75)
0.36
(90.17)
694.09
805.06
1,014.68
3,875.89
(130.41)
(65.75)
(23.76)
128.26
563.68
739.31
990.92
4,004.15
6,969.91
6,969.91
6,966.51
6,969.91
16,228.34
1.02
1.18
1.49
5.70
0.99
1.14
1.44
5.49
Quarter ended

Notes to financial results :

The audited condensed interim standalone financial statements for the quarter ended June 30, 2022 have been taken on record by the Board of Directors at its meeting held on August 3, 2022. The statutory auditors have expressed an unmodified audit opinion. The information presented above is extracted from the audited condensed interim standalone financial statements. These financial statements are prepared in accordance with the Indian Accounting Standards 34 ('Ind AS 34') 'Interim Financial Reporting', under the historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values, as prescribed under Section 133 of the Companies Act, 2013 read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and relevant amendment rules issued thereunder.
As per Ind AS 108 - Operating Segment ('Ind AS 108'), if a financial report contains both consolidated financial statements of a parent that is within the scope of this Ind AS as well as the parent's separate financial statements, segment information is required only in the consolidated financial statements. Accordingly, information required to be presented under Ind AS 108 - Operating Segment has been given in the consolidated financial results.

Mumbai, India August 3, 2022

By order of the Board For Firstsource Solutions Limited Vipul Khanna Managing Director and CEO

Page 1

PRESS RELEASE

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Firstsource Solutions Reports First Quarter Fiscal 2023 Results

Revenues of Rs. 14,724 million

Operating Margin of Rs. 1,171 million

PAT of Rs. 851 million

Mumbai, August 3, 2022: Firstsource Solutions Limited (NSE: FSL, BSE:532809), a global provider of Business Process Management (BPM) services and an RP-Sanjiv Goenka Group company, reported its consolidated financial results for the quarter ended June 30, 2022, according to IndAS.

Financial Highlights for Quarter Ended June 30[th] , 2022:

Revenues at ₹ 14,724 million (US$ 191 million), de-grew 0.8% Y-o-Y and 2.7% in CC
Operating Margin (OM) at ₹ 1,171 million or 8.0% of Revenues
Profit After Tax (PAT) at ₹ 851 million or 5.8% of revenues
Diluted Earnings Per Share (EPS) of ₹ 1.21

Dr. Sanjiv Goenka, Chairman - RPSG Group and Firstsource Solutions, commented, “I'm pleased to report that all Firstsource businesses experienced steady growth during Q1. Our US BFS business was an outlier where revenues in mortgages declined in the rapidly rising interest rate environment; this also impacted our profitability for the quarter. While we expect the macro headwinds to continue, we’re optimistic that a robust pipeline across each of our segments, combined with targeted investments in strategic areas, will help us drive sustained growth. As we look ahead, we are committed to strengthening our digital-first offerings to help our clients modernize their operations and become more efficient and resilient.”

Key Business Highlights:

Our overarching strategy, aimed at building an agile business with a diversified portfolio, has helped ensure a strong pipeline.

Healthcare continues to perform strongly, with a robust pipeline of opportunities from large health plans. Our focus on expanding our Provider offerings is also beginning to yield encouraging results. The Healthcare business welcomed five new clients across revenue cycle management, and integrated care services
As expected, Mortgage revenues declined as higher interest rates led to deflated sales activity. However, our Europe BFS business grew steadily while Collections continues to emerge from last year’s low volumes. We continue to invest in our strategy of fortifying our Digital Collections platform and harnessing it as our growth driver. We onboarded seven new clients in BFS this quarter
Our digital offerings and technology solutions are gaining rapid traction – with both our existing as well as new clients. The demand for existing solutions as well as new digital offerings continues to spike
Customer-First approach – a winning strategy:
UK National Contact Centre Awards 2022: Silver in the Most Effective Distributed Workforce category
Global Sourcing Association UK Awards 2022: Business Services Project of the Year

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PRESS RELEASE

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European Customer Experience Awards – CXA 2022
Customer-driven Business Change and Transformation Award
Best Customer Service Award
Customer at the Heart of Everything™ Award
CSR Leadership Award: Corporate Social Responsibility Summit & Awards 2022
Everest Group BPS Top 50™
Ranked in the HFS Top 10: HCP Services Providers 2022 Report

About Firstsource:

Firstsource Solutions Limited, an RP-Sanjiv Goenka Group company (NSE: FSL, BSE: 532809, Reuters: FISO.BO, Bloomberg: FSOL:IN), is a leading provider of transformational solutions and services spanning the customer lifecycle across Healthcare, Banking and Financial Services, Communications, Media and Technology and other industries. The Company’s ‘Digital First, Digital Now’ approach helps organizations reinvent operations and reimagine business models, enabling them to deliver moments that matter and build competitive advantage. With an established presence in the US, the UK, Mexico, India and the Philippines, Firstsource acts as a trusted growth partner for over 150 leading global brands, including several Fortune 500 and FTSE 100 companies. (www.firstsource.com)

Media Contact

Investors Contact

[email protected] (+91 98198 72747)

[email protected] +91(80) 6633 6075

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3[rd] August 2022

To:

National Stock Exchange of India BSE Limited Limited (Scrip Code: FSL) (Scrip Code: 532809 ) Exchange Plaza, Phiroze Jeejeebhoy Towers, Plot no. C/1, G Block, Dalal Street, Bandra-Kurla Complex, Mumbai - 400 001 Bandra (East), Mumbai - 400 051

Dear Madam/ Sir,

Sub: Declaration under Regulation 33 of the SEBI (Listing Obligations and Disclosures Requirements) Regulations 2015 read with SEBI circular CIR/CFD/CMD/56/2016 dated 27[th] May 2016

We hereby declare that as mentioned under the Independent Auditor’s Report dated 3[rd] August 2022 for Consolidated and Standalone Financial Results respectively for the quarter ended 30[th] June 2022 are with unmodified opinion.

Please take the same on your record.

Thanking you,

For Firstsource Solutions Limited

Digitally signed by POOJA POOJA SURESH SURESH NAMBIAR NAMBIAR Date: 2022.08.03 12:23:01 +05'30' Pooja Nambiar Company Secretary

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AI assistant

Firstsource Solutions Ltd. — Interim / Quarterly Report 2022

61977_rns_2022-08-03_dcc7305d-7431-449b-9c0a-2069d6011b06.pdf

Sub: Declaration of Audited Standalone and Consolidated financial results for the quarter ended 30[th] June 2022 (Q1 FY2022-23) and Outcome of the Board Meeting

Deloitte Haskins & Sells LLP

INDEPENDENT AUDITOR’S REPORT ON AUDIT OF INTERIM CONSOLIDATED FINANCIAL RESULTS

TO THE BOARD OF DIRECTORS OF FIRSTSOURCE SOLUTIONS LIMITED

Opinion

Subsidiaries:

Deloitte

Haskins & Sells LLP

Associate:

Basis for Opinion

Management’s Responsibilities for the Statement

Deloitte

Haskins & Sells LLP

Auditor’s Responsibilities for audit of the Consolidated Financial Results for the quarter ended 30 June 2022

Deloitte

Haskins & Sells LLP

For DELOITTE HASKINS & SELLS LLP

Firstsource Solutions Limited

AUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER ENDED JUNE 30, 2022

CIN: L64202MH2001PLC134147

Tel: + 91 22 66660888 Fax: + 91 22 6666 0887 web: www.firstsource.com, email:[email protected]

Firstsource Solutions Limited

AUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER ENDED JUNE 30, 2022

3. Standalone Information (Audited)

Note on segment information Business segments

Deloitte Haskins & Sells LLP

INDEPENDENT AUDITOR'S REPORT ON AUDIT OF INTERIM STANDALONE FINANCIAL RESULTS

TO THE BOARD OF DIRECTORS OF FIRSTSOURCE SOLUTIONS LIMITED

Opinion

Basis for Opinion

Management’s Responsibilities for the Statement

Deloitte

Haskins & Sells LLP

Auditor’s Responsibilities for audit of the Standalone Financial Results for the quarter ended 30 June 2022

Deloitte

Haskins & Sells LLP

For DELOITTE HASKINS & SELLS LLP

Firstsource Solutions Limited

AUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER ENDED JUNE 30, 2022

CIN: L64202MH2001PLC134147

Tel: + 91 22 66660888 Fax: + 91 22 6666 0887 web: www.firstsource.com, email:[email protected]

Notes to financial results :

Firstsource Solutions Reports First Quarter Fiscal 2023 Results

Financial Highlights for Quarter Ended June 30[th] , 2022:

Key Business Highlights:

PRESS RELEASE

About Firstsource:

Media Contact

Investors Contact

For Firstsource Solutions Limited

More from Firstsource Solutions Ltd.

Firstsource Solutions Ltd. Interim / Quarterly Report 2022