FRM-92095: Oracle JInitiator version too low. Please install version 188.8.131.52
I found the root cause for this issue and following is the solution.
Oracle Forms is not compatible with JRE 7 yet
1. Uninstall JRE Version 7
Help Document to uninstall: http://www.java.com/en/download/uninstall.jsp
2. Once JRE 7 has been un-installed then install latest version of JRE 6 Standard Edition which can be downloaded from here.
3. Clear browser cache. Close and Re-launch the browser and finally retest the issue.
Ensure that JRE updates are done manually by unchecking the “Check for Updates Automatically” button under the Java Control Panel