Notes to Accounts of Lex Nimble Solutions Ltd.

Mar 31, 2025

X. 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 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.

For akasam & associates For and on behalf of the Board of

Chartered Accountants Lex Nimble Solutions Limited

FRN: 005832S Sd/-

CA Ravi Kumar S. Praveen Chakravarthy Medikundam

Partner Chairperson & Director

MRN: 028881

UDIN: 25028881BMISJP1867

Swarali Sachin Shingne Udayasri Mavuleti

Company Secretary Chief Financial Officer

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Mar 31, 2024

The Company has one class of share capital, comprising ordinary shares of Rs. 10/- each. Subject to the Company''s Articles of Association and applicable law, the Company''s ordinary shares confer on the holder the right to receive notice of and vote at general meetings of the Company, the right to receive any surplus assets on a winding-up of the Company, and an entitlement to receive any dividend declared on ordinary shares.

The information as required to be disclosed pursuant under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMEDAct, 2006) has been determined to the extent such parties have been identified on the basis of information available with the Company.

Note 25 Employee Benefits

a) Provident Fund and ESI: Company pays fixed contribution to provident fund and ESI at prescribed rates as per the respective acts to the government authorities. The contribution of Rs. 5.75 Lakhs (previous year Rs 3.89Lacs) and administrative charges also is recognized as expense and is charged in the Statement of Profit and Loss. The obligation of the Company is to make such fixed contribution and to ensure a minimum rate of return as specified by Government of India to the employees. The overall interest earnings and cumulative surplus is more than the statutory interest payment requirement during the year.

b) Gratuity: Gratuity is a funded Defined Benefit Plan payable to the qualifying employees on separation. It is managed by a "Lex Nimble Employees Gratuity Trust’ with an approved gratuity fund in KOTAK GRATUITY GROUP PLAN.

Company shall make annual contribution to the Fund based on the present value of the Defined Benefit obligation and the related current service costs which are measured on actuarial valuation carried out as on Balance Sheet date. The liability has been assessed using Projected Unit Credit Method.

Reconciliation of opening and closing balances of the present value of the defined benefit obligation as at the year ended March 31, 2024 are as follows:

Note 28 Contingent liabilities and commitments
Particulars	2023-2024	2022-2023
Contingent liabilities
Claims against the company not acknowledged as debt	-	-
Total	-	-

Note 29 Segmental Reporting :

Based on the “management approach” as defined in Ind AS 108, the Chief Operating Decision Maker (CODM) evaluates the company’s performance and allocates resources based on an analysis of various performance indicators by business segments. Accordingly, information has been presented for each business segment. The accounting principles used in the preparation of the financial statements are consistently applied to record revenue and expenditure in individual business segments, and are as set out in the significant accounting policies. Business segments of the company are :

1. Software Services

2. Consulting services Segment Revenue and Expense

Details regarding revenue and expenses attributable to each segment must be disclosed

Segment assets include all operating assets in respective segments comprising of net fixed assets and current assets, loans and advances etc. Assets relating to corporate and construction are included in unallocated segments. Segment liabilities include liabilities and provisions directly attributable to respective segment.

Segment revenues and results:

Fair Value Hierarchy Management considers that, the carrying amount of those financial assets and financial liabilities that are not subsequently measured at fair value in the Financial Statements approximate their transaction value. No financial instruments are recognized and measured at fair value for which fair values are determined using the judgments and estimates. The fair value of Financial Instruments referred below has been classified into three categories depending on the inputs used in the valuation technique. The hierarchy gives the highest priority to quoted prices in active market for identical assets or liabilities (Level-1measurements) and lowest priority to unobservable (Level-3 measurements).

The Company does not hold any equity investment and no financial instruments hence the disclosures are nil.

Financial Risk Management:

The Company''s activities expose to a variety of financial risks viz.,market risk, credit risk and liquidity risk. The Company''s focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. The primary market risk to the Company is credit risk and liquidity risk. The Company''s exposure to credit risk is influenced mainly by the regulations made by the governing statutory bodies to the Company and other regulations by the government.

Management of Market Risk:

Market risks comprises of Price risk and Interstate risk. The Company does not designate any fixed rate financial assets as fair value through Profit and Loss nor at fair value through OCI. Therefore, the Company is not exposed to any interstate risk. Similarly, the Company does not have any Financial Instrument which is exposed to change in price.

Foreign Currency Risks:

The Company is exposed to foreign exchange risk arising from various Currency exposures primarily with respect to the US Dollars (USD), for the exports being made by the Company.

Credit Risk:

Credit risk is the risk of financial loss to the Company if a customer fails to meet its contractual obligations. The maximum exposure to the credit risk at the reporting date is primarily from trade receivables. The Company operations are mostly with parent companies and hence no issues on credit worthiness w.r.t transactions between parent and associate company. The

Company considers that, all the financial assets that are not impaired and past due as on each reporting dates under review are considered credit worthy.

Liquidity Risk:

The Company''s liquidity needs are monitored on the basis of monthly projections. The principal sources of liquidity are cash and cash equivalents, cash generated from operations and availability of cash credit.

Short term liquidity requirements consist mainly of sundry creditors, expenses payable and employee dues during the normal course of business. The Company maintains sufficient balance in cash and cash equivalents and working capital facilities to meet the short term liquidity requirements.

The Company assesses long term liquidity requirements on a periodical basis and manages them through internal accruals and committed credit lines.

The following table shows the maturity analysis of the Companies Financial Liabilities based on contractually agreed, undiscounted cash flows as at the balance sheet date

Sundry Creditors includes Rs. 0.93/-(previous year Rs. Nil/-) due to Small Scale & Ancillary undertakings. There are no Micro, Small and Medium Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days at the Balance Sheet date. The above information has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the auditors.

Note 32 Confirmations

The Company requested its debtors and creditors to confirm the balances as at the end of year in respect of trade payables, trade receivables and advances directly to the Statutory Auditors.

Note 33:

Previous year''s figures have been regrouped/reclassified/recasted wherever necessary to confirm to the current year''s presentation.

Note 34:

i. The Company does not have any Benami property, where any proceeding has been initiated or pending against the Group for holding any Benami property.

ii. The Company does not have any transactions with companies struck off.

iii. The Company does not have any charges or satisfaction which is yet to registered with ROC beyond the statutory period.

iv. The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.

v. The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

vi. The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies) , including foreign entities (intermediaries) with the understanding that the intermediary shall: a) 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 b) Provide any guarantee, security or the like to or behalf of the Ultimate Beneficiaries.

vii. The Company has not received any fund from any person(s) or entity(ies), including foreign entities ( Funding Party ) with the understanding (whether recorded in writing or otherwise) that Group shall: a) 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 b) Provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

viii. The Company has not such transaction which is not recorded in books of accounts that has been surrendered or disclosed as income during the year in the assessments under the income tax Act,1961( such as, search or survey or any other relevant provision of the income tax act,1961).

ix. The Company is not covered under section 135 of Companies Act, 2013.

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Mar 31, 2019

Note 1 Employee Benefits

a) Provident Fund: Company pays fixed contribution to provident fund at predetermined rates to the government authorities. The contribution of Rs.5,67,697(previous year Rs-66,042) including administrative charges is recognized as expense and is charged in the Statement of Profit and Loss. The obligation of the Company is to make such fixed contribution and to ensure a minimum rate of return as specified by GOI to the members. The overall interest earnings and cumulative surplus is more than the statutory interest payment requirement during the year.

b) Gratuity: Gratuity is a funded Defined Benefit Plan payable to the qualifying employees on separation. It is managed by a Life Assurance Scheme’ with an approved gratuity fund. Company shall make annual contribution to the Fund based on the present value of the Defined Benefit obligation and the related current service costs which are measured on actuarial valuation carried out as on Balance Sheet date. The liability has been assessed using Projected Unit Credit Method.

Reconciliation of opening and closing balances of the present value of the defined benefit obligation as at the year ended March 31, 2019 are as follows:

Note 2 Related Party Disclosures

List of Related Parties Parties with whom the company has entered into transactions during the year/where control exists

A .Key Management Personnel

i) Mr. Chandra SekharVanumu - Whole time Director

ii) Kavitha Somavarapu - Company Secretary

iii) Udayasri Mavuleti - CFO

iv) Muralidhar Venkata koduri - Director

v) Praveen Chakravarthy Medikundam - Director

vi) Samuel Alemu - Director

vii) Sarada Devi Medikundam - Director

viii) Rakesh Choudary - Director

viii) Jagan Mohan Venkata Bukkaraju - Director

ix) Sreenivas Katragadda - Director B. Holding and Associate Companies

i) Lex Nimble Solutions Inc - Holding Company

ii) ILBS - LLP - Associate LLP

Note 3 Segmental Reporting :

Based on the “management approach” as defined in Ind AS 108, the Chief Operating Decision Maker (CODM) evaluates the company’s performance and allocates resources based on an analysis of various performance indicators by business segments. Accordingly, information has been presented for each business segment. The accounting principles used in the preparation of the financial statements are consistently applied to record revenue and expenditure in individual business segments, and are as set out in the significant accounting policies. Business segments of the company are :

1. Software Services

2. Consulting services

Segment Revenue and Expense

Details regarding revenue and expenses attributable to each segment must be disclosed

Segment assets include all operating assets in respective segments comprising of net fixed assets and current assets, loans and advances etc. Assets relating to corporate and construction are included in unallocated segments. Segment liabilities include liabilities and provisions directly attributable to respective segment.

4. Financial Instruments- Fair Values and Risk Management

a. Financial Instruments by Categories

The following tables show the carrying amounts and fair values of financial assets and financial liabilities by categories. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value

Fair Value Hierarchy Management considers that,the carrying amount of those financial assets and financial liabilities that are not subsequently measured at fair value in the Financial Statements approximate their transaction value. No financial instruments are recognized and measured at fair value for which fair values are determined using the judgments and estimates. The fair value of Financial Instruments referred below has been classified into three categories depending on the inputs used in the valuation technique. The hierarchy gives the highest priority to quoted prices in active market for identical assets or liabilities (Level-1measurements) and lowest priority to unobservable (Level-3 measurements).

The Company does not hold any equity investment and no financial instruments hence the disclosures are nil.

Financial Risk Management:

The Company’s activities expose to a variety of financial risks viz.,market risk, credit risk and liquidity risk. The Company’s focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. The primary market risk to the Company is credit risk and liquidity risk. The Company’s exposure to credit risk is influenced mainly by Government Orders.

Management of Market Risk:

Market risks comprises of Price risk and Interestrate risk. The Company does not designate any fixed rate financial assets as fair value through Profit and Loss nor at fair value through OCI. Therefore, the Company is not exposed to any interestrate risk. Similarly, the Company does not have any Financial Instrument which is exposed to change in price.

Foreign Currency Risks:

The Company is exposed to foreign exchange risk arising from various Currency exposures primarily with respect to the US Dollars (USD), for the imports being made by the Company.

The Company exposure to foreign currency risk as at the end of the reporting periods expressed in INR are as follows:

Credit Risk:

Credit risk is the risk of financial loss to the Company if a customer fails to meet its contractual obligations. The maximum exposure to the credit risk at the reporting date is primarily from trade receivables. The company operations are mostly with parent companies and hence no issues on credit worthiness w.r.t transactions between parent and asscociate company however there might be existence 1% risk while doing services to outside parties . The company considers that, all the financial assets that are not impaired and past due as on each reporting dates under review are considered credit worthy.

Liquidity Risk:

The company’s liquidity needs are monitored on the basis of monthly projections. The principal sources of liquidity are cash and cash equivalents, cash generated from operations and availability of cash credit and also funds received from IPO to meet the obligations as and when due.

Short term liquidity requirements consist mainly of sundry creditors, expenses payable and employee dues during the normal course of business. The company maintains sufficient balance in cash and cash equivalents and working capital facilities to meet the short term liquidity requirements.

The company assesses long term liquidity requirements on a periodical basis and manages them through internal accruals and committed credit lines.

The following table shows the maturity analysis of the Companies Financial Liabilities based on contractually agreed, undiscounted cash flows as at the balance sheet date

Note 5 The disclosure relating to transactions with Micro, Small and Medium Enterprises

Sundry Creditors includes Rs. Nil/-(previous year Rs. Nil/-) due to Small Scale & Ancillary undertakings. There are no Micro, Small and Medium Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days at the Balance Sheet date. The above information has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the auditors.

Note 6 Confirmations

The Company requested its debtors and creditors to confirm the balances as at the end of half year in respect of trade payables, trade receivables and advances directly to the Statutory Auditors.

Note 7

Previous year’s figures have been regrouped/reclassified/recasted wherever necessary to confirm to the current year’s presentation.