Oracle Financial Services Software Limited — Annual Report 2021

May 5, 2021

Off Western Express Highway fax +91 22 6718 3001 Goregaon (East) oracle.com/financialservices Mumbai, Maharashtra 400063 India CIN: L72200MH1989PLC053666

May 5, 2021

To,

To,

Scrip Code – OFSS	Scrip Code – 532466
Bandra (East) Mumbai 400 051	Dalal Street, Mumbai 400 001
Exchange Plaza, Bandra-Kurla Complex	st Floor, Phiroze Jeejeebhoy Towers,1
National Stock Exchange of India Limited	BSE Ltd.
Listing & Compliance	Listing & Compliance
Asst. Vice President	Asst. General Manager

Sub: Decisions taken at the Board Meeting held today

The Board of Directors of the Company at its meeting held today, inter alia:

• 1. approved an Interim Dividend for the financial year 2020-21 of Rs. 200 per equity share of face value of Rs. 5/- each;
• 1. fixed Tuesday, May 18, 2021 as the Record Date for the purpose of said Interim Dividend;
• 1. decided that the Interim Dividend be paid on or before Thursday, June 3, 2021 to the Shareholders whose names appear on the list of members of the Company as at close of business on Tuesday, May 18, 2021; and
• 1. approved audited standalone and consolidated financial statements and results for the quarter and year ended March 31, 2021.

We enclose herewith the following:

• 1. The audited standalone and consolidated financial results of the Company for the quarter and year ended March 31, 2021, along with the Unmodified Auditor's Report thereon issued by M/s. Mukund M Chitale & Co., Chartered Accountants, Statutory Auditors of the Company; and
• 1. A press release on the financial results.

The Board meeting commenced today at 19:30 hours (IST) and concluded at 20:51 hours (IST).

This is for your reference and records.

The above documents will also be uploaded on the Company's website.

Thanking you,

Yours sincerely, For Oracle Financial Services Software Limited

ONKAR NATH BANERJEE Digitally signed by ONKAR NATH BANERJEE Date: 2021.05.05 20:54:13 +05'30'

Onkarnath Banerjee Company Secretary & Compliance Officer Membership No. ACS8547

Encl: as above

Oracle Financial Services Software Limited

E-mail: investors-vp-ofss_in_grp@oracle.com CIN: L72200MH1989PLC053666 Registered Office : Oracle Park, Off Western Express Highway, Goregaon (East), Mumbai 400 063 Tel: + 91 22 6718 3000 Fax: + 91 22 6718 3001 Website: www.oracle.com/financialservices

Audited standalone financial results for the three month period and year ended March 31, 2021

	PART I					( ` in million, except per share data)
			Three month period ended			Year ended
	Particulars	March 31, 2021	December 31, 2020	March 31, 2020	March 31, 2021	March 31, 2020
		Audited	Unaudited	Audited	Audited	Audited
1	INCOME
	(a) Revenue from operations	8,967.50	8,880.88	9,063.56	36,452.12	35,255.08
	(b) Other income, net	290.56	266.65	447.86	1,164.81	1,691.59
	Total income	9,258.06	9,147.53	9,511.42	37,616.93	36,946.67
2	EXPENSES
	(a) Employee benefit expenses	3,312.00	3,024.38	3,092.64	12,443.21	11,909.23
	(b) Travel related expenses	28.76	28.66	347.60	317.51	1,593.78
	(c) Professional fees	300.99	306.53	346.44	1,312.81	1,311.47
	(d) Finance cost	10.15	11.93	30.11	47.99	80.18
	(e) Other operating expenses	51.15	312.01	273.53	814.57	1,134.50
	(f) Depreciation and amortisation	182.11	201.18	210.75	802.03	831.72
	Total expenses	3,885.16	3,884.69	4,301.07	15,738.12	16,860.88
3	Profit before tax	5,372.90	5,262.84	5,210.35	21,878.81	20,085.79
4	Tax expenses
	(a) Current tax	1,253.14	1,394.72	647.82	5,570.78	4,560.70
	(b) Deferred tax	(12.29)	(50.49)	(467.59)	(84.82)	(301.47)
	Total tax expenses	1,240.85	1,344.23	180.23	5,485.96	4,259.23
5	Net profit for the period	4,132.05	3,918.61	5,030.12	16,392.85	15,826.56
6	Other Comprehensive Income
	(a) Items that will not be reclassified subsequently to profit or loss
	(i) Actuarial (loss) gain on gratuity fund	(3.62)	(29.74)	(52.31)	(23.46)	(92.36)
	(ii) Deferred tax	0.91	7.48	13.17	5.90	23.25
	(b) Items that will be reclassified subsequently to profit or loss
	(i) Exchange differences on translation of foreign operations	4.20	(6.87)	31.88	(12.26)	35.57
	Total other comprehensive income for the period, net of tax	1.49	(29.13)	(7.26)	(29.82)	(33.54)
7	Total Comprehensive Income for the period	4,133.54	3,889.48	5,022.86	16,363.03	15,793.02
8	Paid up equity share capital (face value ` 5 each, fully paid)	430.31	430.20	429.40	430.31	429.40
9	Reserve excluding Revaluation Reserves as per balance sheet				56,029.57	54,653.61
10	Earnings per equity share (face value ` 5 each, fully paid)
	(a) Basic (in `)	48.02	45.56	58.58	190.64	184.39
	(b) Diluted (in `)	47.83	45.38	58.36	189.80	183.62
	See accompanying note to the financial results

Notes to financial results :

• 1 The audited standalone financial results for the three month period and year ended March 31, 2021 have been reviewed by the Audit Committee and approved by the Board of Directors of the Company at its meeting held on May 5, 2021. There are no qualifications in the report issued by the Statutory Auditors.
• 2 These financial results have been prepared in accordance with the Indian Accounting Standards (Ind AS) as prescribed under Section 133 of the Companies Act, 2013 read with relevant rules of the Companies (Indian Accounting Standards) Rules, 2015 (as amended) and other accounting principles generally accepted in India.
• 3 The figures for the three month period ended March 31, 2021 and March 31, 2020 are the balancing figures between audited figures in respect of the full financial year ended March 31, 2021 and March 31, 2020 respectively and unaudited published year-to-date figures up to December 31, 2020 and December 31, 2019 respectively, being the end of the third quarter of the respective financial years, which were subjected to limited review.
• 4 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. These are not significant to the standalone financial results for the three month period and year ended March 31, 2021. 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 results, 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 results may differ from that estimated as at the date of approval of these standalone financial results. The Company will continue to monitor any material impact due to changes in future economic conditions.
• 5 The Code on Social Security, 2020 ("Code") relating to employee benefits during the employment and post-employment benefits has been published in the Gazette of India on September 29, 2020. The Ministry of Labour and Employment has released draft rules for the Code on November 13, 2020. The effective date from which these changes are applicable is yet to be notified. The Company will assess and record the impact, if any, when the rules are notified and the code becomes effective.
• 6 During the three month period and year ended March 31, 2021, the Company allotted 22,116 and 182,935 equity shares, respectively, of face value of ` 5 each on exercise of stock options by the eligible employees under the prevailing Employee Stock Option Plan ('ESOP') schemes of the Company.
• 7 Upon adoption of the Appendix C on "Uncertainty over Income-tax Treatments" of Ind AS 12, Income Taxes, the Company had reassessed during the three month period ended March 31, 2020 its estimate of uncertain income-tax position. Based on its reassessment, during the three month period ended March 31, 2020, the Company had recorded net tax expense of 57.46 million, which included charge of 103.90 million pertaining to earlier years and credit of 46.44 million for the current period. Consequent to the tax expense, during the three month period ended March 31, 2020, the Company had recognised the related interest expense of 16.48 million, including ` 8.24 million pertaining to earlier years, which had been disclosed as part of finance cost.

Further, the Company in the three month period ended March 31, 2020, had 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 three month period and year ended March 31, 2020 of 647.82 million and 4,560.70 million respectively included 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 three month period and year ended March 31, 2020.

• 8 Other operating expenses for the three month period and year ended March 31, 2021 includes 42.11 million towards reversal of provision for diminution in value of investment in ISP Internet Mauritius Company. Other operating expenses for the three month period ended March 31, 2020 includes 242.03 million towards reversal of provision for impairment of inter-company loan (including commitment thereof) granted to Oracle (OFSS) BPO Services Limited, a step-down subsidiary company.
• 9 During the year ended March 31, 2020 the Company had acquired 100% equity shares of Mantas India Private Limited at ` 20.28 million towards restructuring of ownership in Indian step-down subsidiary of the Company.

10	Particulars of other income, net:					( ` in million)
			Three month period ended			Year ended
	Particulars	March 31, 2021	December 31, 2020	March 31, 2020	March 31, 2021	March 31, 2020
		Audited	Unaudited	Audited	Audited	Audited
	Finance income	273.29	255.32	424.48	1,071.12	1,508.73
	Exchange (loss) gain, net	(13.33)	(6.18)	3.69	6.97	103.64
	Miscellaneous income, net	30.60	17.51	19.69	86.72	79.22
	Total	290.56	266.65	447.86	1,164.81	1,691.59

				` in million)
--	--	--	--	---------------

11	Statement of assets and liabilities		(` in million)
		As at
	Particulars	March 31, 2021	March 31, 2020
		Audited	Audited
	A ASSETS
	1 Non-current assets
	(a) Property, plant and equipment	1,847.30	2,213.94
	(b) Capital work-in-progress	0.91	0.16
	(c) Right-of-use asset	369.22	622.57
	(d) Investment property	102.00	102.00
	(e) Financial assets
	(i) Investments in subsidiaries	7,726.81	7,681.61
	(ii) Other non-current financial assets	1,375.87	1,376.59
	(f) Deferred tax assets (net)	831.11	740.39
	(g) Income tax assets (net)	7,954.14	7,705.59
	(h) Other non-current assets	327.81	345.25
		20,535.17	20,788.10
	2 Current assets
	(a) Financial assets
	(i) Trade receivables	4,562.87	4,154.31
	(ii) Loan	30.00	106.00
	(iii) Cash and cash equivalents	2,248.21	1,993.84
	(iv) Other bank balances	31,054.91	30,545.37
	(v) Other current financial assets	1,766.85	1,656.02
	(b) Other current assets	1,677.62	1,424.00
		41,340.46	39,879.54
	TOTAL - ASSETS	61,875.63	60,667.64
	B EQUITY AND LIABILITIES
	1 Equity
	(a) Equity share capital	430.31	429.40
	(b) Other equity	56,029.57	54,653.61
		56,459.88	55,083.01
	2 Non-current liabilities
	(a) Financial liabilities
	(i) Lease liability	245.47	283.25
	(b) Provisions	1,256.87	1,150.97
		1,502.34	1,434.22

Statement of assets and liabilities (continued)		( ` in million)
	As at
Particulars	March 31, 2021	March 31, 2020
	Audited	Audited
3 Current liabilities
(a) Financial liabilities
(i) Lease liability	59.48	269.35
(ii) Trade payables
- Payable to micro and small enterprises	4.82	2.58
- Payable to others	172.66	263.00
(iii) Other current financial liabilities	1,515.75	1,577.10
(b) Other current liabilities	1,036.98	1,060.07
(c) Provisions	1,083.75	951.83
(d) Income tax liabilities (net)	39.97	26.48
	3,913.41	4,150.41
TOTAL - EQUITY AND LIABILITIES	61,875.63	60,667.64

12 Statement of cash flows ( ` in million ) Particulars March 31, 2021 March 31, 2020 Audited Audited Cash flows from operating activities Profit before tax 21,878.81 20,085.79 Adjustments to reconcile profit before tax to cash provided by operating activities : Depreciation and amortization 802.03 831.72 (Profit) on sale of fixed assets, net (0.10) (0.23) Employee stock compensation expense 426.61 432.01 Reversal of provision for diminution in value of investment in subsidiary company (42.11) - Finance income (1,071.12) (1,508.73) Effect of exchange rate changes in cash and cash equivalents 11.08 (82.31) Effect of exchange rate changes in assets and liabilities 23.73 (120.69) Finance cost 47.99 80.18 Impairment loss (reversed) on financial assets (191.34) (147.86) Impairment loss recognized on other financial assets 1.95 6.90 Bad debts 101.37 193.11 Operating Profit before Working Capital changes 21,988.90 19,769.89 For the year ended

Statement of cash flows (continued)		( ` in million )
	For the year ended
Particulars	March 31, 2021	March 31, 2020
	Audited	Audited
Movements in working capital
(Increase) in other non-current financial assets	(41.18)	(809.22)
Decrease in other non-current assets	16.22	138.10
(Increase) decrease in trade receivables	(327.77)	846.80
Decrease (increase) in other current financial assets	(142.40)	748.03
(Increase) in other current assets	(252.37)	(313.39)
Increase in non-current provisions	77.47	75.95
(Decrease) in trade payables	(88.10)	(157.83)
(Decrease) in other current financial liabilities	(72.63)	(170.59)
(Decrease) increase in other current liabilities	(23.06)	72.65
Increase in current provisions	130.90	58.45
Cash from operating activities	21,265.98	20,258.84
Payment of domestic and foreign taxes	(5,818.22)	(5,412.15)
Net cash provided by operating activities	15,447.76	14,846.69
Cash flows from investing activities
Purchase of property, plant and equipment	(168.30)	(473.18)
Proceeds from sale of property, plant and equipment	1.57	0.23
Income from investment in sublease	16.02	24.99
Refund (placement) of deposits for premises and others	88.41	(0.26)
Loan repaid by (provided to) step-down subsidiary company	76.00	(106.00)
Investment in step-down subsidiary company	-	(20.28)
Bank fixed deposits having maturity of more than three months matured	33,925.00	17,220.00
Bank fixed deposits having maturity of more than three months booked	(34,636.60)	(33,095.00)
Interest received	1,215.06	1,135.27
Net cash provided by (used in) investing activities	517.16	(15,314.23)
Cash flows from financing activities
Proceeds from issue of shares under employee stock option plan	55.83	43.19
Equity dividend paid	(15,466.31)	(36.08)
Finance cost	(47.99)	(80.18)
Repayment of lease liability	(241.00)	(261.51)
Net cash (used in) financing activities	(15,699.47)	(334.58)
Net increase (decrease) in cash and cash equivalents	265.45	(802.12)
Cash and cash equivalents at beginning of the year	1,993.84	2,713.65
Effect of exchange rate changes in cash and cash equivalents	(11.08)	82.31
Cash and cash equivalents at end of the year	2,248.21	1,993.84

Statement of cash flows (continued) ( ` in million ) Particulars March 31, 2021 March 31, 2020 Audited Audited Component of cash and cash equivalents Balances with banks: In current accounts 1,912.23 1,693.25 In deposit accounts with original maturity of less than three months 250.05 220.04 In unclaimed dividend account* 85.93 80.55 Total cash and cash equivalents at the end of the year 2,248.21 1,993.84 For the year ended

* These balances will be utilized only towards the respective unpaid dividend.

13 Reporting segment wise revenue, results, assets and liabilities

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 include 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.

					( ` in million)
		Three month period ended			Year ended
Particulars	March 31, 2021	December 31, 2020	March 31, 2020	March 31, 2021	March 31, 2020
	Audited	Unaudited	Audited	Audited	Audited
(a) Segment revenue
Product licenses and related activities	8,079.47	8,015.42	8,227.75	32,864.37	31,668.22
IT solutions and consulting services	888.03	865.46	835.81	3,587.75	3,586.86
	8,967.50	8,880.88	9,063.56	36,452.12	35,255.08
(b) Segment results
Product licenses and related activities	4,880.71	5,089.30	4,775.50	20,474.39	18,079.34
IT solutions and consulting services	420.05	385.23	286.16	1,496.05	1,403.85
	5,300.76	5,474.53	5,061.66	21,970.44	19,483.19
Finance income	273.29	255.32	424.48	1,071.12	1,508.73
Other un-allocable (expenses), net	(201.15)	(467.01)	(275.79)	(1,162.75)	(906.13)
Profit before tax	5,372.90	5,262.84	5,210.35	21,878.81	20,085.79

Reporting segment wise revenue, results, assets and liabilities (continued)

					( ` in million)
		Three month period ended			Year ended
Particulars	March 31, 2021	December 31, 2020	March 31, 2020	March 31, 2021	March 31, 2020
	Audited	Unaudited	Audited	Audited	Audited
(c) Segment assets
Product licenses and related activities	8,327.23	9,137.15	8,298.18	8,327.23	8,298.18
IT solutions and consulting services	1,694.39	1,967.69	1,722.75	1,694.39	1,722.75
Unallocable	51,854.01	46,712.07	50,646.71	51,854.01	50,646.71
	61,875.63	57,816.91	60,667.64	61,875.63	60,667.64
(d) Segment liabilities
Product licenses and related activities	4,060.15	4,509.89	4,628.65	4,060.15	4,628.65
IT solutions and consulting services	1,113.33	875.41	719.59	1,113.33	719.59
Unallocable	242.27	231.52	236.39	242.27	236.39
	5,415.75	5,616.82	5,584.63	5,415.75	5,584.63

14 The Board of Directors of the Company at its meeting held on May 5, 2021, declared an interim dividend of 200 per equity share of 5 each for the financial year 2020-21.

15 The above financial results are also available on the Company's website: www.oracle.com/financialservices

For and on behalf of the Board of Directors Oracle Financial Services Software Limited

Chaitanya Kamat Mumbai, India Managing Director & Chief Executive Officer May 5, 2021 DIN: 00969094

Page 7 of 7

Independent Auditor's Report on audited Standalone Quarterly Financial Results and Year to Date Standalone Financial Results of Oracle Financial Services Software Limited Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

To The Board of Directors of Oracle Financial Services Software Limited,

Report on the audit of the Standalone Financial Results

Opinion

1. We have audited the accompanying Statement of quarterly and year to date Standalone financial results of Oracle Financial Services Software Limited (the 'Company') for the quarter and year ended March 31, 2021, attached herewith, being submitted by the Company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended ("Listing Regulations").

In our opinion and to the best of our information and according to the explanations given to us, these standalone financial results:

• i) are presented in accordance with the requirements of Listing Regulations in this regard; and
• ii) gives a true and fair view in conformity with the recognition and measurement principles laid down in the applicable accounting standards and other accounting principles generally accepted in India of the net profit including other comprehensive income and other financial information for the quarter and year ended March 31, 2021.

Basis of Opinion

1. We conducted our audit of the standalone financial results in accordance with the Standards on Auditing specified under Section 143(10) of the Companies Act, 2013 ("the Act"). Our responsibilities under those Standards are further described in the Auditor's Responsibilities for the Audit of the standalone financial results 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 financial results 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 Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Management's responsibility for the standalone financial results

1. These quarterly financial results as well as the year to date standalone financial results have been prepared on the basis of the audited standalone annual financial statements. The Company's Board of Directors is responsible for the preparation of these standalone financial results that give a true and fair view of the of the net profit including other comprehensive income of the Company and other financial information in accordance with

the applicable accounting standards prescribed under Section 133 of the Act read with the rules issued thereunder and other accounting principles generally accepted in India and in compliance with the Listing Regulations. 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 financial results that give a true and fair view and are 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 Company's financial reporting process.

Auditor's Responsibilities for the Audit of the standalone Ind AS Financial Results

1. Our objectives are to obtain reasonable assurance about whether the standalone financial results 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 financial results.

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 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.

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 the Board of Directors.

iv) Conclude on the appropriateness of the Board of Director'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 the Company's ability 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 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 Company to cease to continue as a going concern.

v) 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.

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.

Other Matters

1. The standalone financial results includes the results for the quarter ended March 31, 2021 being the balancing figure between the audited figures in respect of the full financial year ended March 31, 2021 and the published unaudited year-to-date figures up to the third quarter of the current financial year ended March 31, 2021, which were subjected to limited review by us, as required under the Listing Regulations.

For Mukund M. Chitale & Co. Chartered Accountants Firm Regn. No. 106655W

(S.M.Chitale) Partner M. No. 111383

UDIN: 21111383AAAAGK8123

Date: May 05, 2021 Place: Mumbai

PART I					( ` in million, except per share data)
		Three month period ended		Year ended
Particulars	March 31, 2021	December 31, 2020	March 31, 2020	March 31, 2021	March 31, 2020
	Audited	Unaudited	Audited	Audited	Audited
1 INCOME
(a) Revenue from operations	12,108.64	12,384.23	12,635.48	49,839.37	48,612.76
(b) Other income, net	438.71	226.68	371.22	1,319.66	1,773.39
Total income	12,547.35	12,610.91	13,006.70	51,159.03	50,386.15
2 EXPENSES
(a) Employee benefit expenses	5,618.33	5,377.86	5,535.33	22,017.54	21,178.01
(b) Travel related expenses	109.04	147.87	481.41	638.01	2,255.81
(c) Professional fees	326.12	386.62	373.52	1,469.70	1,452.45
(d) Finance cost	45.68	49.72	395.76	191.29	473.65
(e) Other operating expenses	160.01	360.12	592.90	1,028.06	1,439.61
(f) Depreciation and amortization	240.93	262.07	274.06	1,041.11	1,063.81
Total Expenses	6,500.11	6,584.26	7,652.98	26,385.71	27,863.34
7 Profit before tax	6,047.24	6,026.65	5,353.72	24,773.32	22,522.81
8 Tax expenses
(a) Current tax	1,466.51	1,705.85	1,263.14	7,087.21	6,315.25
(b) Deferred tax	(22.41)	24.01	1,398.31	67.56	1,585.39
Total tax expenses	1,444.10	1,729.86	2,661.45	7,154.77	7,900.64
9 Net profit for the period	4,603.14	4,296.79	2,692.27	17,618.55	14,622.17
10 Other Comprehensive Income
(a) Items that will not be reclassified subsequently to profit or loss
(i) Actuarial (loss) gain on gratuity fund	5.13	(29.74)	(56.39)	(14.71)	(96.44)
(ii) Deferred tax	(1.44)	7.48	13.30	3.55	23.38
(b) Items that will be reclassified subsequently to profit and loss
(i) Exchange differences on translation of foreign operations	(211.46)	220.49	760.05	61.74	1,108.95
Total other comprehensive income for the period, net of tax	(207.77)	198.23	716.96	50.58	1,035.89
11 Total comprehensive income for the period	4,395.37	4,495.02	3,409.23	17,669.13	15,658.06
12 Net profit attributable to:
Equity holders of the Company	4,603.14	4,296.79	2,692.27	17,618.55	14,622.17
Non-controlling interests	-	-	-	-	-
13 Total comprehensive income attributable to:
Equity holders of the Company	4,395.37	4,495.02	3,409.23	17,669.13	15,658.06
Non-controlling interests	-	-	-	-	-
14 Paid up equity share capital (face value ` 5 each, fully paid)	430.31	430.20	429.40	430.31	429.40
15 Reserve excluding Revaluation Reserves as per balance sheet of previous accounting year				68,057.43	65,266.40
16 Earnings per equity share (face value ` 5 each, fully paid)
(a) Basic (in `)	53.49	49.96	31.36	204.90	170.38
(b) Diluted (in `)	53.28	49.76	31.24	203.99	169.66
See accompanying note to the financial results

Oracle Financial Services Software Limited

Registered Office : Oracle Park, Off Western Express Highway, Goregaon (East), Mumbai 400 063 Tel: + 91 22 6718 3000 Fax: + 91 22 6718 3001 CIN: L72200MH1989PLC053666 Website: www.oracle.com/financialservices E-mail: investors-vp-ofss_in_grp@oracle.com

Audited consolidated financial results for the three month period and year ended March 31, 2021

Notes to financial results :

10 Particulars of Other income, net

					( ` in million)
		Three month period ended		Year ended
Particulars	March 31, 2021	December 31, 2020	March 31, 2020	March 31, 2021	March 31, 2020
	Audited	Unaudited	Audited	Audited	Audited
Finance income	292.98	270.06	447.46	1,138.65	1,658.14
Exchange gain (loss), net	69.38	(107.74)	(135.56)	(223.78)	(66.12)
Miscellaneous income, net	76.35	64.36	59.32	404.79	181.37
Total	438.71	226.68	371.22	1,319.66	1,773.39

• 1 The above audited consolidated financial results for the three month period and year ended March 31, 2021 have been reviewed by Audit Committee and approved by the Board of Directors of the Company at its meeting held on May 5, 2021. There are no qualifications in the report issued by the Statutory Auditors.

• 2 These financial results have been prepared in accordance with the Indian Accounting Standards (Ind AS) as prescribed under Section 133 of the Companies Act, 2013 read with relevant rules of the Companies (Indian Accounting Standards) Rules, 2015 (as amended) and other accounting principles generally accepted in India.

• 3 The figures for the three month period ended March 31, 2021 and March 31, 2020 are the balancing figures between audited figures in respect of the full financial year ended March 31, 2021 and March 31, 2020 respectively and unaudited published year-to-date figures up to December 31, 2020 and December 31, 2019 respectively, being the end of the third quarter of the respective financial years, which were subjected to limited review.

• 4 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. These are not significant to the Consolidated financial results for the three month period and year ended March 31, 2021. 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 results, 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 Consolidated financial results may differ from that estimated as at the date of approval of these Consolidated financial results. The OFSS group will continue to monitor any material impact due to changes in future economic conditions.

• 5 The Code on Social Security, 2020 ("Code") relating to employee benefits during the employment and post-employment benefits has been published in the Gazette of India on September 29, 2020. The Ministry of Labour and Employment has released draft rules for the Code on November 13, 2020. The effective date from which these changes are applicable is yet to be notified. The OFSS group will assess and record the impact, if any, when the rules are notified and the code becomes effective.

• 6 During the three month period and year ended March 31, 2021, the Company allotted 22,116 and 182,935 equity shares, respectively, of face value of ` 5 each on exercise of stock options by eligible employees under the prevailing ESOP schemes.

• 7 Upon adoption of the Appendix C on "Uncertainty over Income-tax Treatments" of Ind AS 12, Income Taxes, the OFSS group had reassessed during the three month period ended March 31, 2020 its estimate of uncertain income-tax position. Based on its reassessment, during the three month period and the year ended March 31, 2020, the OFSS group had recorded net tax expense of 281.33 million and 485.13 million respectively, both including charge of 284.51 million pertaining to earlier years. Consequent to the tax expense, during the three month period ended March 31, 2020, the OFSS group had recognised 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.

• 8 The deferred tax charge of the OFSS group for the three month period and year ended March 31, 2020 is 1,398.31 million and 1,585.39 million respectively. 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. During the three month period ended March 31, 2020, the OFSS group had reassessed its estimate of the quantum of undistributed profits of all the subsidiaries and based on its reassessment had 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 for the three month period and year ended March 31, 2020 of OFSS group as mentioned hereinabove.

• 9 The tax expense for the 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.

Further, the OFSS group in the three month period ended March 31, 2020, had 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 three month period and year ended March 31, 2020 of 1,263.14 million and 6,315.25 million includes the income tax expense of 281.33 million and 485.13 million for the three month period and the year ended March 31, 2020 respectively and reversals of income tax provisions of 720.27 million for the three month period ended March 31, 2020 arising on account of reassessment as mentioned above, thereby having a resultant impact of net tax credit of 438.94 million and ` 235.14 million in the three month period and year ended March 31, 2020 respectively.

11 Statement of assets and liabilities

` in million)		(
---------------	--	---	--	--	--	--

	As at
Particulars	March 31, 2021Audited	March 31, 2020Audited
1 Non-current assets
(a) Property, Plant and Equipment	1,915.95	2,305.20
(b) Capital work-in-progress	1.33	0.49
(c) Right-of-use Assets	736.14	1,134.40
(d) Investment property	102.00	102.00
(e) Goodwill	6,086.63	6,086.63
(f) Financial assets	1,400.71	1,447.09
(g) Deferred tax assets (net)	1,309.88	1,013.68
(h) Income tax assets (net)	8,328.43	7,979.21
(i) Other non-current assets	386.81	389.63
	20,267.88	20,458.33
2 Current assets
(a) Financial assets
(i) Trade receivables	8,027.53	9,253.66
(ii) Cash and bank balances	16,948.28	13,315.94
(iii) Other bank balances	32,193.04	31,652.17
(iv) Other current financial assets	2,782.87	2,501.59
(b) Income tax assets (net)	939.67	806.28
(c) Other current assets	1,676.29	2,225.47
	62,567.68	59,755.11
TOTAL - ASSETS	82,835.56	80,213.44
B EQUITY AND LIABILITIES
1 Equity
(a) Equity share capital	430.31	429.40
(b) Other equity	68,057.43	65,266.40
	68,487.74	65,695.80
2 Non- current liabilities
(a) Financial liabilities
(i) Lease liability	423.82	681.50
(ii) Other financial liabilities	47.78	45.55
(b) Other non-current liabilities	6.81	-
(c) Provisions	1,294.66	1,198.74
(d) Deferred tax liability (net)	2,332.53	1,975.56
(e) Income tax liabilities (net)	1,727.70	1,156.30
	5,833.30	5,057.65
3 Current liabilities
(a) Financial liabilities
(i) Lease liability	273.79	465.32
(ii) Trade payables
Payable to micro and small enterprises	4.86	2.65
Payable to others	453.18	352.27
(iii) Other current financial liabilities	2,217.53	2,195.30
(b) Other current liabilities	3,940.84	4,967.81
(c) Provisions	1,446.19	1,291.06
(d) Income tax liabilities (net)	178.13	185.58
	8,514.52	9,459.99
TOTAL - EQUITY AND LIABILITIES	82,835.56	80,213.44

12 Consolidated statement of cash flow

		( ` in million)
	Year ended
Particulars	March 31, 2021	March 31, 2020
	Audited	Audited
Cash flows from operating activities
Profit before tax	24,773.32	22,522.81
Adjustments to reconcile profit before tax to cash (used in) provided by operating activities :
Depreciation and amortization	1,041.11	1,063.81
(Profit) on sale of fixed assets, net	(1.16)	(0.31)
Impairment loss (reversed) on contract assets	(252.56)	(107.23)
Impairment loss recognized on other financial assets	1.88	7.06
Bad debts	110.36	200.18
Finance income	(1,138.65)	(1,658.14)
Employee stock compensation expense	538.67	544.01
Effect of exchange rate changes in cash and cash equivalent	122.84	(849.69)
Effect of exchange rate changes in assets and liabilities	(30.83)	769.91
Finance cost	191.29	473.65
Operating Profit before Working Capital changes	25,356.27	22,966.06
Movements in working capital
(Increase) in other non-current financial assets	(41.18)	(809.22)
Decrease in other non-current assets	4.10	135.53
Decrease in trade receivables	1,524.34	633.32
(Increase) decrease in other current financial assets	(289.08)	1,160.39
Decrease (increase) in other current assets	560.74	(211.02)
Increase in non-current financial liabilities	0.63	10.20
Increase (decrease) in other non-current liabilities	6.84	(10.39)
Increase in non-current provisions	81.21	97.09
Increase (decrease) in trade payables	96.65	(216.52)
(Decrease) in other current financial liabilities	(52.17)	(439.25)
(Decrease) in current liabilities	(1,085.73)	(347.73)
Increase (decrease) in current provisions	144.99	(31.78)
Cash from operating activities	26,307.61	22,936.68
Payment of domestic and foreign taxes	(7,112.55)	(7,718.49)
Net cash provided by operating activities	19,195.06	15,218.19
Cash flows from investing activities
Purchase of property, plant and equipment	(190.00)	(535.86)
Proceeds from sale of property, plant and equipment	2.95	0.40
Refund of deposits for premises and others	82.17	5.16
Bank fixed deposits having maturity of more than three months matured	35,121.86	19,852.25
Bank fixed deposits having maturity of more than three months booked	(35,872.77)	(34,485.01)
Interest received	1,288.52	1,281.42
Income from investment in sublease	25.40	40.55
Net cash provided by/(used in) investing activities	458.13	(13,841.09)
Cash flows from financing activities
Proceeds from issue of shares under employee stock option plan	55.83	43.19
Sale of treasury shares	-	85.15
Equity dividend paid	(15,466.31)	(36.08)
Repayment of lease liability	(410.78)	(449.47)
Interest paid	(76.75)	(116.33)
Net cash (used in) financing activities	(15,898.01)	(473.54)
Net increase in cash and cash equivalents	3,755.18	903.56
Cash and cash equivalents at beginning of the year	13,315.94	11,562.69
Effect of exchange rate changes in cash and cash equivalents	(122.84)	849.69
Cash and cash equivalents at end of the year	16,948.28	13,315.94

Consolidated statement of cash flow (continued)

13 Reporting segmentwise revenue, results, assets and liabilities

Segment revenue and expense:

Segment assets and liabilities:

		( ` in million)
	Year ended
Particulars	March 31, 2021	March 31, 2020
	Audited	Audited
Component of cash and cash equivalents
Balances with banks:
In current accounts*	16,564.30	12,935.04
In deposit accounts with original maturity of less than 3 months	298.05	300.35
In unclaimed dividend account**	85.93	80.55
Total cash and cash equivalents	16,948.28	13,315.94

					( ` in million)
		Three month period ended		Year ended
Particulars	March 31, 2021	December 31, 2020	March 31, 2020	March 31, 2021	March 31, 2020
	Audited	Unaudited	Audited	Audited	Audited
(a) Segment revenue
Product licenses and related activities	10,738.37	11,013.80	11,317.22	44,251.70	43,145.69
IT solutions and consulting services	1,015.61	1,016.28	1,014.68	4,227.55	4,275.92
Business process outsourcing services	354.66	354.15	303.58	1,360.12	1,191.15
	12,108.64	12,384.23	12,635.48	49,839.37	48,612.76
(b) Segment results
Product licenses and related activities	5,582.70	6,059.47	5,719.28	23,820.92	21,359.45
IT solutions and consulting services	273.55	205.15	160.63	879.11	778.00
Business process outsourcing services	169.27	165.13	85.89	593.39	388.10
	6,025.52	6,429.75	5,965.80	25,293.42	22,525.55
Finance income	292.98	270.06	447.46	1,138.65	1,658.14
Other un-allocable (expenses), net	(271.26)	(673.16)	(1,059.54)	(1,658.75)	(1,660.88)
Profit before tax	6,047.24	6,026.65	5,353.72	24,773.32	22,522.81
(c) Segment assets
Product licenses and related activities	18,106.07	18,524.07	20,482.81	18,106.07	20,482.81
IT solutions and consulting services	2,127.29	2,006.35	2,018.19	2,127.29	2,018.19
Business process outsourcing services	560.77	663.45	705.31	560.77	705.31
Unallocable	62,041.43	57,832.73	57,007.13	62,041.43	57,007.13
	82,835.56	79,026.60	80,213.44	82,835.56	80,213.44
(d) Segment liabilities
Product licenses and related activities	8,096.30	8,826.97	9,303.69	8,096.30	9,303.69
IT solutions and consulting services	761.53	871.40	831.99	761.53	831.99
Business process outsourcing services	255.32	286.09	317.63	255.32	317.63
Unallocable	5,234.67	5,104.88	4,064.33	5,234.67	4,064.33
	14,347.82	15,089.34	14,517.64	14,347.82	14,517.64

**These balances will be utilized only towards the respective unclaimed dividend. * Current account includes 5.65 million (March 31, 2020 0.76 million) on account of restricted cash and bank balances held by i-flex Employee Stock Option Trust controlled by the Company.

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 classified as unallocable income and expenses.

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.

( ` in million, except per share data)

14 The Board of Directors of the Company at its meeting held on May 5, 2021, declared an interim dividend of 200 per equity share of 5 each for the financial year 2020-21.

15 Audited standalone results for the three month period and year ended March 31, 2021

ParticularsRevenue from operationsNet profit for the periodEarnings per equity share (face value ` 5 each, fully paid)		Three month period ended		Year ended
	March 31, 2021	December 31, 2020	March 31, 2020	March 31, 2021	March 31, 2020
	Audited	Unaudited	Audited	Audited	Audited
	8,967.50	8,880.88	9,063.56	36,452.12	35,255.08
	4,132.05	3,918.61	5,030.12	16,392.85	15,826.56
Basic (in `)	48.02	45.56	58.58	190.64	184.39
Diluted (in `)	47.83	45.38	58.36	189.80	183.62

16 The above results are also available on Company's website: www.oracle.com/financialservices

For and on behalf of the Board of Directors Oracle Financial Services Software Limited

Mumbai, India Chaitanya Kamat May 05, 2021 Managing Director & Chief Executive Officer DIN: 00969094

Independent Auditor's Report on Consolidated audited Quarterly Financial Results and Year to Date Consolidated audited Financial Results of Oracle Financial Services Software Limited Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

To The Board of Directors of Oracle Financial Services Software Limited,

Report on the audit of the Consolidated Financial Results

Opinion

1. We have audited the accompanying Statement of quarterly and year to date Consolidated financial results of Oracle Financial Services Software Limited (the 'Company') and its subsidiaries listed in Annexure '1' (collectively referred to as 'the Group') for the quarter and year ended March 31, 2021, attached herewith, being submitted by the Company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended ("Listing Regulations").

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 other auditor on separate financial statements and the other financial information of subsidiaries these quarterly consolidated financial results as well as the year to date consolidated financial results:

• i) includes the quarterly financial results and the year to date financial results of the entities mentioned in the Annexure '1' to this report.
• ii) is presented in accordance with the requirements of Regulation 33 of the SEBI Listing Regulations, 2015 as amended; and
• iii) gives a true and fair view in conformity with the recognition and measurement principles laid down in the applicable accounting standards and other accounting principles generally accepted in India of the consolidated net profit including other comprehensive income and other financial information of the Group for the quarter and year ended March 31, 2021.

Basis of Opinion

1. We conducted our audit of the consolidated financial results in accordance with the Standards on Auditing specified under Section 143(10) of the Companies Act, 2013 ("the Act"). Our responsibilities under those Standards are further described in the Auditor's Responsibilities for the Audit of the consolidated financial results 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 financial statements 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 Code of Ethics. We believe that the audit evidence obtained by us and other auditor in terms of their reports referred to in "Other Matter" paragraph below, is sufficient and appropriate to provide a basis for our opinion.

Management's responsibility for the consolidated financial results

1. These quarterly financial results as well as the year to date consolidated financial results have been prepared on the basis of the audited consolidated annual financial statements.

The Company's Board of Directors is responsible for the preparation of these consolidated financial results that give a true and fair view of the of the net profit including other comprehensive income of the Group and other financial information in accordance with the applicable accounting standards prescribed under Section133 of the Act read with the rules issued thereunder and other accounting principles generally accepted in India and in compliance with the Listing Regulations. 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 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 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 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 the respective Board of Directors either intends to liquidate the companies or to cease operations, or has no realistic alternative but to do so.

The respective Board of Directors included in the Group are responsible for overseeing the financial reporting process of the Group.

Auditor's Responsibilities for the Audit of the consolidated financial results

1. Our objectives are to obtain reasonable assurance about whether the consolidated financial results 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 financial results.

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 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.

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 the Board of Directors.

iv) Conclude on the appropriateness of the Board of Director'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 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 to cease to continue as a going concern.

v) 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.

vi) Obtain sufficient appropriate audit evidence regarding the financial results/financial information of the entities within the Group 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 such entities included in the consolidated financial results of which we are the Independent Auditors. For the other entities included in the consolidated Financial Results, which have been audited by other auditor, such other auditor 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 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.

We also performed procedures in accordance with the circular issued by the SEBI under Regulation 33(8) of the Listing Regulations, as amended, to the extent applicable.

Other Matters

• 1. We did not audit the financial statements and other financial information, in respect of five subsidiaries, whose Ind AS financial statements and other financial information include total assets of Rs. 26,023.13 million as at March 31, 2021; total revenues of Rs. 10,074.36 million and Rs. 41,518.85 million for the quarter and year ended March 31, 2021 respectively; total profit after tax (net) of Rs. 873.64 million and Rs. 1,907.23 million for the quarter and year ended March 31, 2021 respectively; total comprehensive income of Rs. 652.79 million and Rs. 1,940.62 million for the quarter and year ended March 31, 2021 respectively and net cash inflows of Rs. 3,148.53 million for the year ended March 31, 2021. These Ind AS financial statements and other financial information have been audited by other auditor whose financial statements, other financial information and auditor's reports have been furnished to us. Our opinion on the quarterly and the year to date consolidated financial results, in so far as it relates to the amounts and disclosures included in respect of these entities is based solely on the reports of other auditor and the procedures performed by us are as stated in paragraph above. Our opinion is not modified in respect of this matter with respect to our reliance on the work done and the reports of the other auditor.
• 1. The consolidated financial results includes the results for the quarter ended March 31, 2021 being the balancing figure between the audited figures in respect of the full financial year ended March 31, 2021 and the published unaudited year-to-date figures up to the third quarter of the current financial year ended March 31, 2021, which were subjected to limited review by us, as required under the Listing Regulations.

For Mukund M. Chitale & Co. Chartered Accountants Firm Regn. No. 106655W

(S.M.Chitale) Partner M. No. 111383

UDIN: 21111383AAAAGL8116

Date: May 05, 2021 Place: Mumbai

Annexure '1'

(referred to in point No. 1 of our Independent Auditor's Report on Consolidated audited Quarterly Financial Results and Year to Date Consolidated audited Financial Results)

Particulars	Name of the Subsidiary
	1) Oracle Financial Services Software B.V.
	2) Oracle Financial Services Software Pte. Ltd.
	3) Oracle Financial Services Software Chile Limitada
	4) Oracle Financial Services Software (Shanghai) Limited
Direct Subsidiaries	5) Oracle Financial Services Software America, Inc.
	6) ISP Internet Mauritius Company
	7) Oracle (OFSS) Processing Services Limited
	8) Oracle (OFSS) ASP Private Limited
	9) Mantas India Private Limited
	Subsidiary of Oracle Financial Services Software B.V.:
	10)- Oracle Financial Services Software SA
	Subsidiary of Oracle Financial Services Software Pte Ltd:
	11)-Oracle Financial Services Consulting Pte. Ltd.
	Subsidiaries of Oracle Financial Services Software America, Inc.:
	12)-Oracle Financial Services Software, Inc.
Subsidiaries of Subsidiaries	13)-Mantas Inc.
	Subsidiaries of Mantas Inc.:
	14)-Sotas Inc.
	Subsidiaries of ISP Internet Mauritius Company:
	15) -Oracle (OFSS) BPO Services Inc.
	16) -Oracle (OFSS) BPO Services Limited
Controlled Trust	17) i-flex ESOP Stock Trust

Off Western Express Highway fax +91 22 6718 3001 Goregaon (East) oracle.com/financialservices Mumbai, Maharashtra 400063 India

CIN: L72200MH1989PLC053666

FOR IMMEDIATE RELEASE

Oracle Financial Services Software Reports for Fiscal Year 2021. Revenue for the Fiscal Year 2021 at Rs. 4,984 Crore, up 3% YoY; Net Income for Fiscal Year 2021 at Rs. 1,762 Crore, up 20% YoY; Declares an interim dividend of Rs. 200 per equity share of Rs. 5 face value

Mumbai, India, May 05, 2021 – Oracle Financial Services Software Limited (Reuters: ORCL.BO and ORCL.NS), a majority owned subsidiary of Oracle, today announced results for the quarter and full year ended March 31, 2021. On a consolidated basis, net income for fiscal year 2021 was Rs. 1,762 Crore, up 20% compared to fiscal year 2020. Revenue for fiscal year 2021 was Rs. 4,984 Crore, up 3% compared to fiscal year 2020. Operating income for fiscal year 2021 was Rs. 2,345 Crore, up 13% compared to fiscal year 2020.

For the quarter ended March 31, 2021, net Income was Rs. 460 Crore, up 71% as compared to the corresponding quarter last fiscal year. The operating income for the quarter was up 13% year-over-year, while the revenue was down 4% year-over-year.

For the full year ended March 31, 2021, the products business posted revenue of Rs. 4,425 Crore, up 3% compared to fiscal year 2020, and operating income of Rs. 2,382 Crore, up 12% year- over-year. For the same period, the services business posted revenue of Rs. 423 Crore, down 1% year-over-year, and the operating income of Rs. 88 Crore, up 13% year-over-year.

For the quarter ended March 31, 2021, the products business posted revenue of Rs. 1,074 Crore, down 5% as compared to corresponding quarter in fiscal 2020 and an operating income of Rs. 558 Crore representing an operating margin of 52%. The Services business delivered an operating income of Rs. 27 Crore with an operating margin of 27%.

The Board of Directors of the Company has declared an Interim Dividend of Rs. 200 per equity share of face value of Rs. 5/- each for the financial year 2020-21.

Managing Director and Chief Executive Officer, Oracle Financial Services Software Chet Kamat, said, "Our investments in the product portfolio has helped us build a strong pipeline. For the full year, we posted 20% growth in net income and operating income grew 13% as compared to the previous year. We signed US$ 14.7 million of new license fees in the quarter, representing strategic new logos across the portfolio. Despite the uncertain business environment, we continue to see broad-based demand for our product lines from both emerging and developed markets."

Executive Director and Chief Financial Officer Oracle Financial Services Software Makarand Padalkar, said, "We maintained our track record of delivering strong operating performance. For the fiscal year ended March 2021, we posted an operating margin of 47% as compared to 43% for fiscal year ended March 2020."

Business Highlights

• The Company signed license deals of US$ 14.7 million during this quarter with customers in 27 countries.

• 12 customers went live on Oracle Financial Services software products during the quarter.

• PNC Bank, N.A., one of the largest banks in the U.S. with a 160-year history of offering retail banking, corporate banking, and asset management services, has reaffirmed its faith in Oracle Banking Technology by signing a deal for Oracle's Virtual Account solution that we have begun working on together.

• A leading U.S.-based company has expanded its investments in Oracle technology by signing a deal for Oracle Financial Services Lending and Leasing.

• Cabel Industry Spa, Italy is an ICT service provider operating since 1985. They operate in the areas of information technology, finance, banking services, and capital market. The company expanded its Oracle Banking technology portfolio by signing a deal for Oracle Banking Payments, Oracle Banking Branch, and Oracle FLEXCUBE Universal Banking.

• An established Canadian bank has chosen to extend its relationship with Oracle by signing a deal for Oracle Financial Services Analytical Applications.

• FIMBank PLC is a leading provider of trade finance, factoring, and forfaiting solutions with a global presence across Dubai, Greece, Malta, Egypt, India, Brazil, U.K., U.S., Russia, France, and Germany. The bank has extended its relationship with Oracle by signing a deal for Oracle Banking Digital Experience and Oracle Banking APIs.

• A large British bank has demonstrated its support of Oracle technology by signing a deal for Oracle Financial Services Analytical Applications.

• An established Australian bank has extended its relationship with Oracle by signing a deal for Oracle Financial Services Analytical Applications.

• One of the leading banks in Japan has signed a deal for Oracle Financial Services Analytical Applications demonstrating its support of Oracle Banking technology.

• One of the largest banks in Qatar has signed a deal for Oracle Financial Services Analytical Applications.

• A leading Canadian bank has extended its relationship with Oracle by signing a deal for Oracle Financial Services Analytical Applications.

• An established Australian wealth management company has signed a deal to implement Oracle Financial Services Analytical Applications.

• A renowned Djibouti-based bank has chosen to implement a suite of Oracle Banking technology to drive its digital transformation. The bank has signed a deal for Oracle FLEXCUBE Universal Banking, Oracle Banking Digital Experience, Oracle FLEXCUBE Onboarding, Oracle Banking Branch, Oracle Banking Corporate Lending and Process Management, Oracle Banking Payments, Oracle Banking Trade Finance and Process Management, Oracle Banking Treasury Management, Oracle Banking Extensibility Workbench, and Oracle Banking Enterprise Limits and Collateral Management.

• Recognizing the versatility of Oracle's technology, a leading Hong Kong-based bank has chosen to sign a deal for Oracle Financial Services Analytical Applications.

ORACLE FINANCIAL SERVICES SOFTWARE GROUP

FY 2020-21 YEAR TO DATE : FINANCIAL RESULTS CONSOLIDATED STATEMENTS OF OPERATIONS (In INR Million, except per share data)

Particulars			Year Ended		%
	Mar 31,	% of	Mar 31,	% of	Increase
	2021	Revenues	2020	Revenues	(Decrease)
REVENUES
Products	44,252	89%	43,146	89%	3%
Services	4,228	8%	4,276	9%	(1%)
BPO - Services	1,360	3%	1,191	2%	14%
Total Revenues	49,840	100%	48,613	100%	3%
SEGMENT RESULTS
Products	23,821	54%	21,360	50%	12%
Services	879	21%	778	18%	13%
BPO - Services	593	44%	388	33%	53%
Total	25,293	51%	22,526	46%	12%
Unallocable expenses	(1,840)	(4%)	(1,776)	(3%)	4%
OPERATING INCOME	23,453	47%	20,750	43%	13%
Interest and other income, net	1,320	3%	1,773	3%	(26%)
INCOME BEFORE PROVISION OFTAXES	24,773	50%	22,523	46%	10%
Provision for taxes	7,154	14%	7,901	16%	(9%)
NET INCOME	17,619	36%	14,622	30%	20%
Earnings per share of Rs 5/- each (in Rs)
Basic	204.90		170.38		20%
Diluted	203.99		169.66		20%

	Q4 FY 2020-21 : FINANCIAL RESULTSCONSOLIDATED STATEMENTS OF OPERATIONS(In INR Million, except per share data)
Particulars			Three Months Ended		%
	Mar 31,2021	% ofRevenues	Mar 31,2020	% ofRevenues	Increase(Decrease)
REVENUES
Products	10,738	89%	11,317	89%	(5%)
Services	1,016	8%	1,015	8%	0%
BPO - Services	355	3%	304	3%	17%
Total Revenues	12,109	100%	12,636	100%	(4%)
SEGMENT RESULTS
Products	5,583	52%	5,719	51%	(2%)
Services	274	27%	161	16%	70%
BPO - Services	169	48%	86	28%	97%
Total	6,026	50%	5,966	47%	1%
Unallocable expenses	(417)	(4%)	(983)	(8%)	(58%)
OPERATING INCOME	5,609	46%	4,983	39%	13%
Interest and other income, net	438	4%	371	3%	18%
INCOME BEFORE PROVISION OF	6,047	50%	5,354	42%	13%
TAXESProvision for taxes	1,444	12%	2,662	21%	(46%)
NET INCOME	4,603	38%	2,692	21%	71%
Earnings per share of Rs 5/- each (in Rs)
Basic	53.49		31.36		71%
Diluted	53.28		31.24		71%

ORACLE FINANCIAL SERVICES SOFTWARE GROUP

					Oracle Financial Services Software Limited
		Q4 FY 2020-21 Financial Results			SUPPLEMENTAL OPERATING MATRICES
			Financial Year 2019-20					Financial Year 2020-21
Geographic Revenues	Q1	Q2	Q3	Q4	Full Year	Q1	Q2	Q3	Q4	Full Year
Products Business
IndiaOutside India	6%	7%	7%	7%	7%	8%	7%	7%	7%	8%
Americas
United States of America	20%	21%	21%	22%	21%	20%	19%	20%	23%	20%
Rest of America	6%	9%	8%	6%	7%	9%	8%	9%	9%	9%
Europe	16%	16%	17%	18%	17%	16%	20%	19%	18%	18%
Asia Pacific	27%	27%	27%	30%	28%	28%	30%	30%	28%	29%
Middle East and Africa	25%	20%	20%	17%	21%	19%	16%	16%	15%	17%
Services Business (incl. BPO Services)
India	0%	1%	1%	0%	1%	1%	1%	1%	1%	1%
Outside IndiaAmericas
United States of America	74%	70%	73%	72%	72%	72%	74%	75%	75%	74%
Rest of America	1%	1%	1%	1%	1%	1%	0%	1%	0%	1%
Europe	13%	16%	12%	15%	14%	15%	12%	12%	11%	13%
Asia Pacific	8%	8%	11%	9%	9%	7%	9%	9%	9%	9%
Middle East and Africa	5%	4%	2%	3%	3%	4%	3%	3%	3%	3%
Total Company
India	5%	6%	6%	6%	6%	7%	7%	7%	7%	7%
Outside India
Americas
United States of America	26%	27%	27%	27%	27%	25%	25%	26%	29%	26%
Rest of America	6%	8%	7%	6%	7%	8%	7%	8%	8%	8%
Europe	16%	16%	16%	17%	16%	16%	19%	18%	17%	17%
Asia PacificMiddle East and Africa	25%22%	25%18%	26%18%	28%16%	26%19%	26%18%	28%14%	27%14%	26%14%	27%15%
Revenue Analysis
Products Business
License Fees	19%	9%	8%	15%	13%	19%	10%	12%	10%	13%
Maintenance Fees	29%	34%	35%	32%	32%	32%	37%	36%	35%	35%
Consulting fees
Fixed Price	28%	29%	29%	30%	29%	26%	30%	29%	33%	29%
Time & Material Basis	24%	28%	28%	23%	26%	23%	24%	23%	21%	23%
Services Business (incl. BPO Services)
Fixed Price	24%	27%	24%	24%	25%	28%	25%	29%	27%	27%
Time & Material Basis	76%	73%	76%	76%	75%	72%	75%	71%	73%	73%
Trade Receivables
0-180 days	92%	91%	92%	93%	93%	97%	97%	98%	97%	97%
More than 180 days	8%	9%	8%	7%	7%	3%	3%	2%	3%	3%
DSO (Days)	68	62	65	63	63	64	55	56	54	54
Attrition Rate (TTM)	22%	22%	22%	21%	21%	17%	15%	14%	15%	15%
Staff Data
Products Business	5,998	6,119	6,122	6,188	6,188	6,185	6,319	6,367	6,238	6,238
Services Business	946	957	954	958	958	953	906	865	840	840
BPO BusinessCorporate	635195	653188	654189	664191	664191	651193	644189	694184	719180	719180
Total	7,774	7,917	7,919	8,001	8,001	7,982	8,058	8,110	7,977	7,977

About Oracle Financial Services Software Limited

Oracle Financial Services Software Limited (Reuters: ORCL.BO & ORCL.NS) is a world leader in providing products and services to the financial services industry and is a majority owned subsidiary of Oracle Corporation. Oracle Corporation [NASDAQ: ORCL] is the world's most complete, open and integrated business software and hardware systems company. For more information, visit www.oracle.com/financialservices.

About Oracle

Oracle offers suites of integrated applications plus secure, autonomous infrastructure in the Oracle Cloud. For more information about Oracle (NYSE: ORCL), please visit us at www.oracle.com.

Trademark

Oracle, Java and MySQL are registered trademarks of Oracle Corporation. FLEXCUBE is a trademark of Oracle Financial Services Software and are registered in several countries. Other names may be trademarks of their respective owners.

"Safe Harbor" Statement: Statements in this press release relating to Oracle Financial Services Software Limited future plans and prospects are "forward-looking statements" and are subject to material risks and uncertainties. Many factors could affect our current expectations and our actual results, and could cause actual results to differ materially. All information set forth in this release is current as of May 05, 2021. Oracle Financial Services Software Limited undertakes no duty to update any statement in light of new information or future events.

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Contact Info

Judi Palmer Oracle Public Relations +1.650.784.7901 Judi.palmer@oracle.com

Ken Bond Oracle Investor Relations +1.650.607.0349 ken.bond@oracle.com