We have audited the accompanying standalone financial statements of Oracle Financial Services Software Limited (“the Company”),
which comprise the Balance sheet as at March 31, 2026, the Statement of Profit and Loss, including the statement of Other
Comprehensive Income, the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and notes
to the standalone financial statements, including a summary of material accounting policies and other explanatory information
(hereinafter referred to as “the standalone financial statements”).
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial
statements give the information required by the Companies Act, 2013, as amended (“the Act”) in the manner so required and give
a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company
as at March 31,2026, its profits including other comprehensive income, its cash flows and the changes in equity for the year ended
on that date.
Basis for Opinion
We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (SAs), as specified
under section 143(10) of the Act. Our responsibilities under those Standards are further described in the ‘Auditor's Responsibilities
for the Audit of the Standalone Financial Statements' section of our report. We are independent of the Company in accordance with
the ‘Code of Ethics' issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant
to our audit of the 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 we have
obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone
financial statements for the financial year ended March 31,2026. These matters were addressed in the context of our audit of the
standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these
matters. For each matter below, our description of how our audit addressed the matter is provided in that context.
We have determined the matters described below to be the key audit matters to be communicated in our report. We have fulfilled
the responsibilities described in the ‘Auditor's responsibilities for the audit of the standalone financial statements' section of our
report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond
to our assessment of the risks of material misstatement of the standalone financial statements. The results of our audit procedures,
including the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying
standalone financial statements.
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Key audit matters
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How our audit addressed the key audit matter
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Revenue recognition
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The Company's revenue streams consist of license
fees, maintenance fees and consulting fees - fixed price
and time & material contracts.
Revenue from contracts with customers is recognized
by the Company in accordance with the requirements
of Ind AS 115, Revenue from Contracts with Customers
(“Ind AS 115”) (as described in note 2.2(d) of the
financial statements).
The application of Ind AS 115 and the Accounting
Policy of the Company involves certain key judgements
relating to identification of distinct performance
obligations, determination of the transaction price,
allocation of transaction price to the identified
performance obligations especially to license fees, the
appropriateness of the basis used to measure revenue
recognised over time or at a point in time, including
relevant cut-off at period end dates.
Accordingly, we identified revenue recognition as a key
audit matter.
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Our audit procedures included and were not limited to the following:
a) We evaluated whether the revenue recognition of the Company is
in accordance with the accounting policies and principles as per
Ind AS 115.
b) We obtained an understanding of management's internal controls
over the revenue process and evaluated whether these were
designed in line with the Ind AS 115. We tested relevant internal
controls, including information technology (IT) controls, over
revenue process including the following:
i. Read and identified the distinct performance obligations in
these contracts and compared these performance obligations
with those identified and recorded by the Company.
ii. Read the terms of the contracts and checked determination
of the transaction price including any variable consideration.
Also, checked management's evaluation of the stand-alone
selling price for each performance obligation.
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Key audit matters
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How our audit addressed the key audit matter
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Refer note 2.2(d), 17 and 25 (vii) of the standalone Ind
AS financial statements.
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iii. Tested the basis used by the management to measure
revenue recognised over time or at a point in time as per
the requirements of Ind AS 115 and the Accounting Policies
of the Company.
c) We also performed substantive procedures on a sample of
revenue contracts entered into by Company, selected on a test
check basis as deemed appropriate.
d) We performed cut-off testing procedures (by selecting a sample
of contracts either side of year-end) to test that revenue has been
recognised in the appropriate accounting period.
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Income tax expense towards tax uncertainties
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Management is required to ensure compliance with
tax laws every year and appropriately determine
the tax expense and deferred tax balances. Further,
management is also required to evaluate the transfer
pricing mechanism every year and its consequential
impact on adequacy of provision for income tax and
deferred tax of the Company.
Additionally, the Company has uncertain income
tax positions which includes matters under dispute
involving significant judgment to determine the
possible outcome of these disputes. The Company
has during the year ended March 31, 2026, reviewed
the uncertain tax positions in respect of all matters
and wherever considered appropriate recognised
income tax provisions relating to uncertain income tax
treatments and the related interest expense thereon.
Accordingly, we identified income tax provision as a
key audit matter.
Refer note 2.2(e), 16, 25(iv) and 42 of the standalone
Ind AS financial statements.
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Our audit procedures included and were not limited to the following:
a) We evaluated the design and tested the operating effectiveness
of the relevant controls, through combination of procedures
involving inquiry and observation, reperformance and inspection
of evidence in respect of operation of these controls to assess how
the Company monitors income tax and related developments and
their assessment of the potential impact on the Company.
b) We tested current income tax and deferred tax computation
provided by the management and checked the arithmetical
accuracy of the amounts reported for current and deferred tax. We
read assessment orders from tax authorities, tax returns wherever
appropriate to assess impact on provision for income tax, if any.
c) For uncertain tax positions, we obtained details of income tax
assessments, appeal orders and income tax demands and other
communications with tax authorities, from management.
We evaluated the management's underlying assumptions of the
validity and adequacy of provisions for uncertain income tax
positions and evaluated the basis of determination of the possible
outcome of the disputes. Also where applicable, external advice
sought by the Company for these uncertain income tax positions
and reviewed related correspondence in evaluating management's
position on these uncertain income tax matters.
d) We engaged our tax specialist to assess:
i. the current income tax computation provided by the
management.
ii. the transfer pricing mechanism including the basis of
recording provisions for uncertain income tax treatment
and interest thereon, as per tax laws.
e) We obtained and assessed effective tax rate reconciliation to
evaluate the Company's total income tax expense for the year.
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Information Other than the Financial Statements and Auditor's Report Thereon
The Company's Board of Directors is responsible for the other information. The other information comprises the information
included in the Annual report, but does not include the standalone financial statements and our auditor's report thereon. The
Annual Report is expected to be made available to us after the date of this auditor's report.
Our opinion on the standalone financial statements does not cover the other information and we do not express any form of
assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information identified
above when it becomes available and, in doing so, consider whether such other information is materially inconsistent with the
standalone financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.
When we read the Annual Report, if we conclude that there is material misstatement therein, we are required to communicate the
matter to those charged with governance and determine the actions under applicable laws and regulations.
Responsibilities of Management for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation
of these standalone financial statements that give a true and fair view of the financial position, financial performance including
other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles
generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under section 133 of the Act read with the
Companies (Indian Accounting Standards) Rules, 2015, as amended. 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 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 statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
In preparing the standalone financial statements, management is responsible for assessing the Company's ability to continue as a
going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless
management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the Company's financial reporting process.
Auditor's Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with 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
standalone financial statements.
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 statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate
to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control.
• Obtain an understanding of internal control 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 with reference to financial statements in place and the operating
effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by management.
• Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt
on the 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 financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's
report. However, future events or conditions may cause the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and
whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair
presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to
bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance
in the audit of the standalone financial statements for the financial year ended March 31, 2026 and are therefore the key audit
matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or
when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse
consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2020 (“the Order”), issued by the Central Government of India in
terms of sub-section (11) of section 143 of the Act, we give in the “Annexure 1” a statement on the matters specified in
paragraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were
necessary for the purposes of our audit;
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from
our examination of those books;
(c) The Balance Sheet, the Statement of Profit and Loss including the Statement of Other Comprehensive Income, the Cash
Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account;
(d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under
Section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015, as amended;
(e) On the basis of the written representations received from the directors as on March 31,2026 taken on record by the
Board of Directors, none of the directors is disqualified as on March 31, 2026 from being appointed as a director in
terms of Section 164 (2) of the Act;
(f) With respect to the adequacy of the internal financial controls with reference to these standalone financial statements
and the operating effectiveness of such controls, refer to our separate Report in “Annexure 2” to this report;
(g) In our opinion, the managerial remuneration for the year ended March 31, 2026 has been paid / provided by the
Company to its directors in accordance with the provisions of section 197 read with Schedule V to the Act;
(h) With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies
(Audit and Auditors) Rules, 2014, as amended in our opinion and to the best of our information and according to the
explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its standalone financial
statements - Refer Note 42 to the standalone financial statements;
ii. The Company did not have any long-term contracts including derivative contracts for which there were any
material foreseeable losses;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and
Protection Fund by the Company;
iv. a) The management has represented that, to the best of its knowledge and belief, no funds have been
advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind
of funds) by the Company to or in any other person or entity, including foreign entities (“Intermediaries”),
with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether,
directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or
on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf
of the Ultimate Beneficiaries;
b) The management has represented that, to the best of its knowledge and belief, no funds have been
received by the Company from any person or entity, including foreign entities (“Funding Parties”), with
the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or
indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of
the Funding Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries; and
c) Based on such audit procedures performed that have been considered reasonable and appropriate in
the circumstances, nothing has come to our notice that has caused us to believe that the representations
under sub-clause (a) and (b) contain any material misstatement.
v. The interim dividend declared and paid by the Company during the year is in accordance with section 123 of the
Act.
Interim dividend declared by the Company for financial year 2025-26 on April 22, 2026 (date of approval of
the accompanying financial statements) is in accordance with section 123 of the Act to the extent it applies to
declaration of dividend. However, the said dividend was not paid on the date of this audit report.
vi. Based on our examination which included test checks, the Company has used accounting software for
maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has
operated throughout the year for all relevant transactions recorded in the software. Further, during the course of
our audit we did not come across any instance of audit trail feature being tampered with. Additionally, the audit
trail of prior year has been preserved by the Company as per the statutory requirements for record retention.
For S. R. Batliboi & Associates LLP
Chartered Accountants
ICAI Firm Registration Number: 101049W/E300004
per Govind Ahuja
Partner
Membership Number: 048966
UDIN: 26048966MXCVGF7789
Place of Signature: Mumbai
Date: April 22, 2026
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