Oracle Financial Services Software Limited. BALANCE SHEET AS AT MARCH 31, 2010 (Amounts in thousands of Indian Rupees)

Transcription

1 BALANCE SHEET AS AT MARCH 31, 2010 March 31, 2010 March 31, 2009 SOURCES OF FUNDS Shareholders' funds Share capital 419, ,847 Share application money pending allotment 8, Reserves and surplus 41,353,344 34,675,269 41,780,686 35,094,222 APPLICATION OF FUNDS Fixed assets Gross block 4,879,784 5,007,785 Less: Accumulated depreciation and amortisation 2,814,052 2,641,693 Net book value 2,065,732 2,366,092 Capital work-in-progress and advances 1,304,106 1,013,261 3,369,838 3,379,353 Investments 7,247,296 7,201,374 Deferred tax assets 384, ,103 Current assets, loans and advances Sundry debtors 8,772,357 11,710,383 Cash and bank balances 17,592,364 10,842,275 Other current assets 2,038,002 1,481,697 Loans and advances 8,484,300 7,254,297 36,887,023 31,288,652 Less: Current liabilities and provisions Current liabilities 5,322,888 6,421,296 Provisions 784, ,964 6,107,542 7,080,260 Net current assets 30,779,481 24,208,392 41,780,686 35,094,222

2 PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31, 2010 (Amounts in thousands of Indian Rupees, except per share data) Year ended March, 31 Revenue 22,434,696 22,126,231 Cost of revenue (11,333,615) (11,927,641) Gross profit 11,101,081 10,198,590 Operating expenses Selling and marketing expenses (420,968) (1,040,245) General and administrative expenses (2,149,614) (2,620,979) Depreciation and amortisation (374,102) (428,405) Operating profit 8,156,397 6,108,961 Non-operating income (expenses) Interest income 680, ,511 Foreign exchange (loss) gain, net (1,363,733) 954,175 Other income, net 967 5,178 Profit before exceptional item and provision for taxes 7,473,682 7,791,825 Exceptional item - (468,900) Profit before provision for taxes 7,473,682 7,322,925 Provision for taxes Current tax (968,658) (372,803) Deferred tax 78,968 83,389 Fringe benefit tax 24,496 (76,395) Net profit for the year 6,608,488 6,957,116 Profit and loss account, beginning of the year 15,075,430 8,118,314 Surplus carried to Balance Sheet 21,683,918 15,075,430 Earnings per share of Rs 5/- each (in Rs) Basic Diluted

3 8. Segment information Oracle Financial Services Software Limited Schedules annexed to and forming part of accounts for the year ended March 31, 2010 Business segments are defined as a distinguishable component of an enterprise that is engaged in providing a group of related products or services and that is subject to differing risks and returns and about which separate financial information is available. This information is reviewed and evaluated regularly by the management in deciding how to allocate resources and in assessing the performance. The Company is organised by business segment and geographically. For management purposes the Company is primarily organised on a worldwide basis into two business segments: a) Product licenses and related activities ('Products') and b) IT solutions and consulting services ('Services'). The business segments are the basis on which the Company reports its primary segment information to management. Product licenses and related activities segment deals with banking software products like the FLEXCUBE suite of products, Reveleus and MicroBanker which cater to needs of corporate, retail and investment banking as well as treasury operations and data warehousing requirements. The related activities include enhancements, implementationand maintenance activities. IT solutions and consulting services comprise of bespoke software development, provision of computer software solutions and related consulting services arising from such activities. This segment is further sub-divided in the following sub-segments i.e. Business intelligence, Customer relationship management, Brokerage, e-commerce, Internet services and IT and Business consulting. Year ended March 31, 2010 Particulars Products Services Corporate Total Revenue 15,178,505 7,256,191-22,434,696 Cost of revenue (6,159,690) (5,173,925) - (11,333,615) Gross profit 9,018,815 2,082,266-11,101,081 Selling and marketing expenses (359,124) (61,844) - (420,968) General and administrative expenses (838,986) (558,591) (752,037) (2,149,614) Depreciation and amortisation (159,053) (175,534) (39,515) (374,102) Operating profit 7,661,652 1,286,297 (791,552) 8,156,397 Interest income 680,051 Other income, net 967 Foreign exchange (loss), net (1,363,733) Profit before provision for taxes 7,473,682 Provision for taxes (865,194) Net profit 6,608,488 Other information Capital expenditure by segment 53,074 20,227 12,376 85,677 Other non cash expenses (12,516) (3,156) (15,672) Segment assets 7,400,540 5,966,207 34,521,478 47,888,225 Segment liabilities 3,537,286 1,966, ,642 6,107,540 Shareholders' funds 41,780,686 41,780,686

4 Schedules annexed to and forming part of accounts for the year ended March 31, 2010 Year ended March 31, 2009 Particulars Products Services Corporate Total Revenue 14,391,599 7,734,632-22,126,231 Cost of revenue (6,236,441) (5,691,200) - (11,927,641) Gross profit 8,155,158 2,043,432-10,198,590 Selling and marketing expenses (876,050) (164,195) - (1,040,245) General and administrative expenses (851,908) (680,361) (1,088,710) (2,620,979) Depreciation and amortisation (194,881) (177,585) (55,937) (428,403) Operating profit 6,232,319 1,021,290 (1,144,647) 6,108,961 Interest income 723,511 Other income, net 5,178 Foreign exchange gain, net 954,175 Profit before exceptional item and provision for taxes 7,791,825 Exceptional item (468,900) Profit before provision for taxes 7,322,925 Provision for taxes (365,809) Net profit 6,957,116 Other information Capital expenditure by segment 66, , , ,646 Other non cash expenses 288,419 60, ,913 Segment assets 8,745,212 7,105,693 26,323,577 42,174,482 Segment liabilities 4,588,915 1,914, ,181 7,080,261 Shareholders' funds 35,094,222 35,094,222 Segment revenue and expense: Revenue is generated through licensing of software products as well as by providing software solutions to the customers including consulting services. The expenses which are not directly attributable to a business segment are classified as unallocated corporate expenses and shown under corporate in the segment disclosure above. Segment assets and liabilities: Segment assets include all operating assets used by a segment and consist principally of debtors,, net of allowances, unbilled revenue, deposits for premises and fixed assets. Segment liabilities primarilyincludes deferred revenues, finance lease obligation, advance from customer, accrued employee cost and other current 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 corporate assets and liabilities. Geographical segments The following table shows the distribution of the Company's sales by geographical market : Year ended March 31, Regions Amount % Amount % United States of America 5,937,716 26% 5,262,766 24% Europe 7,431,197 33% 7,884,872 36% Asia Pacific 5,022,548 22% 4,444,099 20% Middle East, India and Africa 3,571,101 16% 4,127,499 18% Latin America and Caribbean 472,134 2% 406,995 2% 22,434, % 22,126, % The following table shows the Company's assets by geographical market : Year ended March 31, Regions Amount % Amount % United States of America 10,713,295 22% 11,239,232 27% Europe 3,149,911 7% 4,466,519 10% Asia Pacific 4,227,426 9% 3,388,629 8% Middle East, India and Africa 29,729,239 62% 22,713,435 54% Latin America and Caribbean 68,355 1% 366,667 1% 47,888, % 42,174, %

5 STATEMENT OF CASH FLOW FOR THE YEAR MARCH 31, 2010 Year ended March, 31 Cash flows from operating activities Profit before provision for taxes 7,473,682 7,322,925 Adjustments to reconcile profit before provision for taxes to cash (used in) provided by operating activities : Depreciation and amortisation 374, ,405 Loss on sale of fixed assets, net 10, Marked to market of current investment (417) (479) Interest income (680,051) (723,511) Effect of exchange rate changes in cash and cash equivalent 336,480 (93,371) Unrealised exchange loss / (gain) (660,921) (304,081) Finance charge on leased assets 2,326 2,948 Deferred rent (34,029) 22,770 Provision for doubtful debts, net (15,672) 348,913 Bad debts 6,849 4,480 Operating Profit before Working Capital changes 6,812,816 7,009,184 Changes in assets and liabilities Decrease / (increase) in sundry debtors and unbilled revenue 3,193,813 (3,092,239) Decrease / (increase) in loans and advances 24,685 (62,856) (Decrease) / increase in current liabilities and provisions (1,046,662) 1,880,043 Cash from operating activities 8,984,652 5,734,132 Payment of domestic and foreign taxes (2,057,605) (1,411,692) Net cash provided by operating activities 6,927,047 4,322,440 Cash flows from investing activities Additions to fixed assets including capital work-in-progress (357,851) (686,366) Net investment in lease 13,336 9,420 Investment in subsidiary company (45,505) - Deposit for office premises (132,689) (10,991) Proceeds from sale of fixed assets Bank fixed deposits having maturity of more than 90 days matured 22,465,711 10,817,366 Bank fixed deposits having maturity of more than 90 days booked (26,920,639) (14,670,052) Proceeds from maturity of investments - 33,254 Interest received 646, ,121 Net cash (used) in investing activities (4,330,605) (3,824,679) Cash flows from financing activities Issue of shares against Employee Stock Option scheme 70,015 10,509 Advance against equity shares to be issued under ESOP scheme 7, Payment of lease obligations (12,147) (12,038) Net cash provided by (used) in financing activities 65,829 (1,423) Net increase in cash and cash equivalents 2,662, ,338 Cash and cash equivalents at beginning of the period 1,557, ,458 Effect of exchange rate changes (336,480) 93,371 Cash and cash equivalents at end of the year (Note 1) 3,882,958 1,557,167

6 STATEMENT OF CASH FLOW FOR THE YEAR MARCH 31, 2010 Note 1 : Component of cash and cash equivalent 2010 Year ended March, Cash and bank balances* 17,592,367 10,842,275 Less: Bank deposits having maturity of more than 90 days (13,703,342) (9,279,041) Margin money deposit (6,067) (6,067) Cash and cash equivalents at the end of the year 3,882,958 1,557,167 * Includes amount kept in unclaimed dividend accounts of Rs. 982 (March 31, 2009 Rs. 1,335) not available for use by the Company.