Accounting Policies of Lex Nimble Solutions Ltd. Company

Mar 31, 2025

I. Company Overview

Lex Nimble Solutions Limited (formally known as Lex Nimble Solutions Private Limited) is
a company providing Software As A Service (SAAS) services to its holding company,
outsourcing services to its associate companies outside India and Quality consulting and
advisory services. Lex Nimble Solution is incorporated as private Limited company
incorporated and domiciled in India and has its registered office at Q3, Module A-1, 10th
Floor, Cyber Towers, Hitech City, Madhapur Hyderabad, Telangana, India. The Company has
been converted into public limited in the month July 2017, and the company got listed as SME
in Bombay Stock Exchange (BSE) in the month of April 2018.

The Financial Statement are approved by the Board of Directors on 21th of May 2025 in the
Board of Directors Meeting held at Illinois, USA.

II. Basis of Preparation of Financial Statements

These financial statements are prepared in accordance with Indian Accounting Standards (Ind
AS), the provisions of the Companies Act, 2013 (“the Companies Act”), as applicable and
guidelines issued by the Securities and Exchange Board of India (“SEBI”). The Ind AS are
prescribed under Section 133 of the Act read with Rule 3 of the Companies (Indian
Accounting Standards) Rules, 2015 and Companies (Indian The accounting policies have been
applied consistently to all periods presented in these financial statements).

III. Basis of Measurement

These financial statements have been prepared on a historical cost convention and on an
accrual basis, except for certain assets and liabilities which have been measured at fair value
as per Ind AS. The financial statements are presented in Indian Rupees (INR) being the
functional currency of the Company.

IV. Use of Estimates

The preparation of financial statements in conformity with Ind AS requires management to
make estimates, judgments and assumptions (including revisions, if any). These estimates,

judgments and assumptions affect the application of accounting policies and reported amounts
of assets and liabilities, the disclosure of contingent assets and liabilities at the date of financial
statements and the reported amounts of revenue and expenses during the period. Appropriate
changes in the estimates are made as management becomes aware of changes in
circumstances. Changes in the estimates are reflected in the financial statements in the period
in which changes are made.

V. Revenue of Recognition

Revenue is net of GST wherever applicable, recognized on accrual basis, to the extent that it
is probable that the economic benefits will flow to the Company and the revenue can be
reliably measured. Revenue is recognized in respect of services/software against completion
of milestones/ acceptance/acknowledgement from the customers. Interest income is
recognized using the effective interest rate method.

VI. Property Plant and Equipment

Property, Plant and Equipment are stated at cost net of GST, if any and subsequently at cost
less depreciation and impairment losses if any. Assets are depreciated on the written down
value method and depreciation is charged on pro rata basis for the additions/ deletions during
the year. The useful lives of the assets and the rates of depreciation wherever applicable have
been adopted are as per Schedule II to the Companies Act, 2013 ;except in the case of lease
hold improvements which have been amortised for the period of lease.

VII. Intangibles

Identifiable intangible assets are recognized when the company controls the asset; it is
probable that future economic benefits expected with the respective assets will flow to the
company for more than one economic period; and the cost of the asset can be measured
reliably. At initial recognition, intangible assets are recognized at cost. Intangible assets are
amortized on straight line basis over estimated useful lives from the date on which they are
available for use. Trademark is amortized for a period of 10 Years being the estimated useful
life.

VIII. Impairment

The carrying amount of assets are assessed as to whether there is any indication of impairment

as at the end of each Balance Sheet date. Impairment exists when the carrying value of an
asset or cash generating unit exceeds its recoverable amount, which is the higher of its fair
value less costs of disposal and its value in use.

If the estimated recoverable amount is found less than its carrying amount, the impairment
loss is recognized and assets are written down to their recoverable amount, if any.

IX. Foreign Exchange Transactions/Translation

Transactions in foreign currencies are accounted at functional currency, at the exchange rate
prevailing on the date of transactions. Gains/losses arising out of the fluctuations in the
exchange rate between functional currency and foreign currency are recognized in the
Statement of Profit &Loss in the period in which they arise. The fluctuations between foreign
currency and functional currency relating to monetary items at the year ending are accounted
as gains / losses in the Statement of Profit & Loss.

The Assets and Liabilities of Foreign Branch are translated in Indian rupees as per the rates
specified in IND AS 21 -“The Effects of Changes in Foreign Exchange Rates”.

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Mar 31, 2024

Note 1:

COMPANY OVERVIEW AND SIGNIFICANT ACCOUNTING POLICIES:

I. Company Overview

Lex Nimble Solutions Limited (formally known as Lex Nimble Solutions Private Limited) is a company providing Software As A Service (SAAS) services to its holding company, outsourcing services to its associate companies outside India and Quality consulting and advisory services. Lex Nimble Solution is incorporated as private Limited company incorporated and domiciled in India and has its registered office at Q3, Module A-1, 10th Floor, Cyber Towers, Hitec City, Madhapur Hyderabad, Telangana, India. The Company has been converted into public limited in the month July 2017, and the company got listed as SME in Bombay Stock Exchange (BSE) in the month of April 2018.

The Financial Statement are approved by the Board of Directors on 28th of May 2024 in the Board of Directors Meeting held at Illinois, USA.

II. Basis of Preparation of Financial Statements:

These financial statements are prepared in accordance with Indian Accounting Standards (Ind AS), the provisions of the Companies Act, 2013 (“the Companies Act”), as applicable and guidelines issued by the Securities and Exchange Board of India (“SEBI”). The Ind AS are prescribed under Section 133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian The accounting policies have been applied consistently to all periods presented in these financial statements.

III. Basis of Measurement

These financial statements have been prepared on a historical cost convention and on an accrual basis, except for certain assets and liabilities which have been measured at fair value as per Ind AS. The financial statements are presented in Indian Rupees (INR) being the functional currency of the Company.

IV. Use of Estimates

The preparation of financial statements in conformity with Ind AS requires management to make estimates, judgments and assumptions (including revisions, if any). These estimates, judgments and assumptions affect the application of accounting policies and reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of financial statements and the reported amounts of revenue and expenses during the period. Appropriate changes in the estimates are made as management becomes aware of changes in circumstances. Changes in the estimates are reflected in the financial statements in the period in which changes are made.

V. Revenue of Recognition

Revenue is net of GST wherever applicable, recognized on accrual basis, to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is recognized in respect of services/software against completion of milestones/ acceptance/acknowledgement from the customers. Interest income is recognized using the effective interest rate method.

Property, Plant and Equipment are stated at cost net of GST, if any and subsequently at cost less depreciation and impairment losses if any. Assets are depreciated on the written down value method and depreciation is charged on pro rata basis for the additions/ deletions during the year. The useful lives of the assets and the rates of depreciation wherever applicable have been adopted are as per Schedule II to the Companies Act, 2013; except in the case of lease hold improvements which have been amortised for the period of lease.

VII. Intangibles

Identifiable intangible assets are recognized when the company controls the asset; it is probable that future economic benefits expected with the respective assets will flow to the company for more than one economic period; and the cost of the asset can be measured reliably. At initial recognition, intangible assets are recognized at cost. Intangible assets are amortized on straight line basis over estimated useful lives from the date on which they are available for use. Trademark is amortized for a period of 10 Years being the estimated useful life.

VEIL Impairment:

The carrying amount of assets are assessed as to whether there is any indication of impairment as at the end of each Balance Sheet date. Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, which is the higher of its fair value less costs of disposal and its value in use.

If the estimated recoverable amount is found less than it’s carrying amount, the impairment loss is recognized and assets are written down to their recoverable amount, if any.

IX. Foreign Exchange Transactions/Translation

Transactions in foreign currencies are accounted at functional currency, at the exchange rate prevailing on the date of transactions. Gains/losses arising out of the fluctuations in the exchange rate between functional currency and foreign currency are recognized in the Statement of Profit &Loss in the period in which they arise. The fluctuations between foreign currency and functional currency relating to monetary items at the year ending are accounted as gains / losses in the Statement of Profit & Loss.

X. Provisions. Contingent Assets/ Contingent Liabilities

Provisions are recognized when the company has a present obligation (legal or constructive) as a result of the past event, it is probable that an outflow of economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. Show cause notices issued by Government Authorities where the probability of outflow of economic resources is remote are not considered as obligations. When the demands are raised against show-cause notices and are disputed by the company, these are treated as disputed obligations along with other contingent liabilities. Such contingent liabilities are not recognized but are disclosed in the notes. Contingent Assets are not recognized but disclosed in the notes to the financial statements; if any.

XI. Leases

The company is a lessee, and the Operating lease payments are recognized as expense on a straight-line basis over the lease term.

XII. Income Tax

Income tax expense represents the sum of current tax payable and deferred tax.

Current Tax: The tax currently payable is based on the current year taxable profit for the year. The current tax is calculated using the tax rates that have been enacted or substantively enacted at the end of the reporting period.

Deferred tax: Deferred tax is provided using the Balance Sheet method on temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date. Deferred tax assets are generally recognized for all deductible temporary differences to the extent that it is probable that the taxable profits will be available against which those deductible temporary differences can be utilized. Deferred tax is calculated using the tax rates that have been enacted or substantively enacted at the end of the reporting period. The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized.

XIII. Earnings per Share

The Company presents basic and diluted earnings per share data for its ordinary shares. Basic earnings per share is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding during the year, adjusted for own shares held. Diluted earnings per share is determined by adjusting the profit or loss attribute to ordinary shareholders and the weighted average number of ordinary shares outstanding, adjusted for own shares held, for the effects of all dilutive potential ordinary shares.

XIV. Employee benefits

The company provides for Gratuity, a Defined Benefit retirement plan covering eligible employees. The gratuity plan provides a lump sum payment to vested employees at retirement, death or termination of employment of an amount based on the respective employee''s salary and the tenure of employment with the company. Liabilities with regard to Gratuity plan are determined by the actuarial valuation at each balance sheet date. Actuarial gain/loss is recognized in the statement of profit and loss. Retirement benefit in the form of provident fund is a Defined Contribution scheme. Contribution made to statutory provident fund is accounted on accrual basis.

XV. Financial Instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

Non-derivative financial instruments

Non-derivative financial instruments consist of:

1. financial assets, which include cash and cash equivalents, trade receivables, other advances and eligible current and non-current assets.

2. Financial liabilities, which include long and short-term loans and borrowings, trade payables, eligible current and non-current liabilities.

Non derivative financial instruments are recognized initially at fair value including any directly attributable transaction costs. Financial assets are derecognized when substantial risks and rewards of ownership of the financial asset have been transferred. In cases where substantial risks and rewards of ownership of the financial assets are neither transferred nor retained, financial assets are derecognized only when the Company has not retained control over the financial asset.

Subsequent to initial recognition, non-derivative financial instruments are measured as described below:

1. Cash and cash equivalents

For the purposes of the cash flow statement, cash and cash equivalents include cash in hand, at banks and demand deposits with banks, net of outstanding bank overdrafts, if any, that are repayable on demand and are considered part of the Company’s cash management system.

2. Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are presented as current assets, except for those maturing later than 12 months after the reporting date which are presented as non-current assets. Loans and receivables are initially recognized at fair value plus directly attributable transaction costs and subsequently measured at amortized cost, less any impairment losses. Loans and receivables comprise trade receivables and other assets.

The company estimates the un-collectability of accounts receivable by analysing historical payment patterns, customer concentrations, customer credit-worthiness and current economic trends. If the financial condition of a customer deteriorates, additional allowances may be required.

3. Trade and payable

Liabilities are recognized for amounts to be paid in future for goods or services received, whether billed by the supplier or not.

4. Financial assets at fair value through other comprehensive income (FVTOCI)

A ‘Financial assets’ is classified as at the FVTOCI if both of the following criteria are met:

a) The objective of the business model is achieved both by collecting contractual cash flows and selling the financial assets, and

b) The asset’s contractual cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

Financial assets included within the FVTOCI category are measured initially as well as at each reporting date at fair value. Fair value movements are recognized in the other comprehensive income (OCI). However, the Company recognizes interest income, impairment losses and reversals in the statement of Profit and Loss. On derecognition of the asset, cumulative gain or loss previously recognized in OCI is reclassified from the equity to Statement of Profit and Loss.

Interest earned whilst holding FVTOCI Financial assets is reported as interest income using the effective interest rate (EIR) method.

5. Financial assets at fair value through profit and loss (FVTPL)

FVTPL is a residual category for financial assets. Any Financial assets, which does not meet the criteria for categorization as at amortized cost or as FVTOCI, is classified as FVTPL.

In addition, the Company may elect to designate Financial assets, which otherwise meets amortized cost or FVTOCI criteria, as at FVTPL. However, such election is allowed only if doing so reduces or eliminates a measurement or recognition inconsistency (referred to as ‘accounting mismatch’).

Financial assets included within FVTPL category are measured at fair value with all changes recognized in the statement of profit and loss.

XVI. Segment Information

The Company has been identified one of Director as the Chief Operating Decision Maker (CODM) as defined by Ind AS-108, “Operating Segments.” The CMD of the Company evaluates the segments based on their revenue growth and operating income. The Company has identified its Operating Segments as SAAS services to the holding company and consulting services performed in India. The Assets and liabilities used in the Company’s business that are not identified to any of the operating segments are shown as unallocable assets/liabilities. Management believes that it is currently not practicable to provide segment disclosures relating to total assets and liabilities since the assets are used interchangeably and hence a meaningful segregation of the available data is onerous.

XVII. Events after the reporting period

Adjusting events are events that provide further evidence of condition that existed at the end of the reporting period. The financial statements are adjusted for such events before authorization for issue.

XVIII. Prior Period Errors

Errors of material amount relating to prior period(s) are disclosed by a note with nature of prior period errors, amount of correction of each such prior period presented retrospectively, to the extent practicable along with change in basic and diluted earnings per share. However, where retrospective restatement is not practicable for a particular period then the circumstances that lead to the existence of that condition and the description of how and from where the error is corrected are disclosed in Notes to Accounts.

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Mar 31, 2019

Note 01: COMPANY OVERVIEW AND SIGNIFICANT ACCOUNTING POLICIES:

A. Company Overview

Lex Nimble Solutions Limited (formally known as Lex Nimble Solutions Private Limited) is a company providing Software services to its holding company, outsourcing services to its associate companies outside India and consulting services. Lex Nimble Solution is incorporated as private Limited company incorporated and domiciled in India and has its registered office at Q3, Module A-1, 10th Floor, Cyber Towers, Hitec City, Madhapur Hyderabad, Telangana, India. The Company has been converted into public limited in the month July 2017, and the company got listed as SME in Bombay Stock Exchange (BSE) in the month of April 2018.

The Financial Statements are approved by the Board of Directors on 25th June 2019 in the board of Directors Meeting held at Hyderabad.

B. Basis of Preparation of Financial Statements:

These financial statements are prepared in accordance with Indian Accounting Standards (Ind AS), the provisions of the Companies Act, 2013 (“the Companies Act”), as applicable and guidelines issued by the Securities and Exchange Board of India (“SEBI”). The Ind AS are prescribed under Section 133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016.

The accounting policies have been applied consistently to all periods presented in these financial statements.

C. Basis of Measurement

These financial statements have been prepared on a historical cost convention and on an accrual basis, except for certain assets and liabilities which have been measured at fair value as per Ind AS.

The financial statements are presented in Indian Rupees (INR) being the functional currency of the Company.

D. Use of Estimates

The preparation of financial statements in conformity with Ind AS requires management to make estimates, judgments’ and assumptions (including revisions, if any). These estimates, judgments and assumptions affect the application of accounting policies and reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of financial statements and the reported amounts of revenue and expenses during the period.

Appropriate changes in the estimates are made as management becomes aware of changes in circumstances. Changes in the estimates are reflected in the financial statements in the period in which changes are made.

E. Revenue of Recognition:

Revenue is net of GST wherever applicable, recognized on accrual basis, to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

Revenue is recognized in respect of services/software against completion of milestones/ acceptance/acknowledgement from the customers.

Interest income is recognized using the effective interest rate method.

F. Property Plant and Equipment:

Property, Plant and Equipment are stated at cost net of GST, if any and subsequently at cost less depreciation and impairment losses if any.

Assets are depreciated on straight line method and depreciation is charged on monthly pro rata basis for the additions/ deletions during the year. The useful lives of the assets adopted are as per Schedule II to the Companies Act, 2013 except in case of lease hold improvements are amortised for the period of ten years from the date put to use.

G. Intangibles

Identifiable intangible assets are recognized when the company controls the asset; it is probable that future economic benefits expected with the respective assets will flow to the company for more than one economic period; and the cost of the asset can be measured reliably. At initial recognition, intangible assets are recognized at cost. Intangible assets are amortized on straight line basis over estimated useful lives from the date on which they are available for use Trade Marks are amortize for a period of 10 Years being the estimated useful life. Software is amortized over its useful life subject to a maximum period of 3 years or over the license period as applicable.

H. Impairment:

As at the end of each Balance Sheet date, the carrying amount of assets is assessed as to whether there is any indication of impairment. If the estimated recoverable amount is found less than its carrying amount, the impairment loss is recognized and assets are written down to their recoverable amount.

I. Foreign Exchange Transactions/Translation

Transactions in foreign currencies are accounted at functional currency, at the exchange rate prevailing on the date of transactions. Gains/losses arising out of the fluctuations in the exchange rate between functional currency and foreign currency are recognized in the Statement of Profit &Loss in the period in which they arise. The fluctuations between foreign currency and functional currency relating to monetary items at the year ending are accounted as gains / losses in the Statement of Profit & Loss.

J. Provisions, Contingent Assets/ Contingent Liabilities

Provisions are recognized when the company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

Show cause notices issued by Government Authorities where the probability of outflow of economic resources is remote are not considered as obligations. When the demands are raised against show-cause notices and are disputed by the company, these are treated as disputed obligations along with other contingent liabilities. Such contingent liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

K. Leases

Where the company is a lessee Operating lease payments are recognized as expense on a straight line basis over the lease term.

L. Income Tax:

Income tax expense represents the sum of current tax payable and deferred tax. Current Tax: The tax currently payable is based on the current year taxable profit for the year. The current tax is calculated using the tax rates that have been enacted or substantively enacted at the end of the reporting period.

Deferred tax: Deferred tax is provided using the Balance Sheet method on temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date. Deferred tax assets are generally recognized for all deductible temporary differences to the extent that it is probable that the taxable profits will be available against which those deductible temporary differences can be utilized. Deferred tax is calculated using the tax rates that have been enacted or substantively enacted at the end of the reporting period. The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized.

M. Earnings per Share:

The Company presents basic and diluted earnings per share data for its ordinary shares. Basic earnings per share is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding during the year, adjusted for own shares held. Diluted earnings per share is determined by adjusting the profit or loss attribute to ordinary shareholders and the weighted average number of ordinary shares outstanding, adjusted for own shares held, for the effects of all dilutive potential ordinary shares.

N. Employee benefits:

The company provides for Gratuity, a Defined Benefit retirement plan covering eligible employees. The gratuity plan provides a lump sum payment to vested employees at retirement, death or termination of employment of an amount based on the respective employee’s salary and the tenure of employment with the company. Liabilities with regard to Gratuity plan are determined by the actuarial valuation at each balance sheet date. Actuarial gain/loss is recognized in the statement of profit and loss.

Retirement benefit in the form of provident fund is a Defined Contribution scheme. Contribution made to statutory provident fund is accounted on accrual basis.

O. Financial Instruments: Non-derivative financial instruments

Non-derivative financial instruments consist of:

i) Financial assets, which include cash and cash equivalents, trade receivables, other advances and eligible current and non-current assets;

ii) Financial liabilities, which include long and short-term loans and borrowings, trade payables, eligible current and non-current liabilities.

Non derivative financial instruments are recognized initially at fair value including any directly attributable transaction costs. Financial assets are derecognized when substantial risks and rewards of ownership of the financial asset have been transferred. In cases where substantial risks and rewards of ownership of the financial assets are neither transferred nor retained, financial assets are derecognized only when the Company has not retained control over the financial asset.

Subsequent to initial recognition, non-derivative financial instruments are measured as described below:

a) Cash and cash equivalents

For the purposes of the cash flow statement, cash and cash equivalents include cash in hand, at banks and demand deposits with banks, net of outstanding bank overdrafts, if any, that are repayable on demand and are considered part of the Company’s cash management system.

b) Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are presented as current assets, except for those maturing later than 12 months after the reporting date which are presented as non-current assets. Loans and receivables are initially recognized at fair value plus directly attributable transaction costs and subsequently measured at amortized cost, less any impairment losses. Loans and receivables comprise trade receivables and other assets.

The company estimates the un-collectability of accounts receivable by analyzing historical payment patterns, customer concentrations, customer credit-worthiness and current economic trends. If the financial condition of a customer deteriorates, additional allowances may be required.

c) Trade and payable

Liabilities are recognized for amounts to be paid in future for goods or services received, whether billed by the supplier or not.

P. Segment Information:

The Company has been identified one of Director as the Chief Operating Decision Maker (CODM) as defined by Ind AS-108, “Operating Segments.” The CMD of the Company evaluates the segments based on their revenue growth and operating income.

The Company has identified its Operating Segments as software services to the holding company and consulting services performed in India.

The Assets and liabilities used in the Company’s business that are not identified to any of the operating segments are shown as unallocable assets/liabilities. Management believes that it is currently not practicable to provide segment disclosures relating to total assets and liabilities since the assets are used interchangeably and hence a meaningful segregation of the available data is onerous.

Q. Events after the reporting period:

Adjusting events are events that provide further evidence of condition that existed at the end of the reporting period. The financial statements are adjusted for such events before authorization for issue.

R. Prior Period Errors:

Errors of material amount relating to prior period(s) are disclosed by a note with nature of prior period errors, amount of correction of each such prior period presented retrospectively, to the extent practicable along with change in basic and diluted earnings per share. However, where retrospective restatement is not practicable for a particular period then the circumstances that lead to the existence of that condition and the description of how and from where the error is corrected are disclosed in Notes to Accounts.