To the Members
Lex Nimble Solutions Limited
Report on the Ind AS Financial Statements
We have audited the Ind AS financial statements of Lex Nimble Solutions Limited("the Company") which comprise the Balance Sheet as at March 31 2019 and theStatement of Profit and Loss Statement of changes in equity and Statement of cash flowsfor the year then ended and Notes to the financial statements including a summary ofsignificant accounting policies and other explanatory information (herein after referredto as "Ind AS financial statements").
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS financial statements give the information required bythe Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India including the Ind AS of the financialposition of the Company as at March 31 2019 and its financial performance including othercomprehensive income its cash flows and changes in equity for the year ended on thatdate.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder sec on 143(10) of the Companies Act 2013. Our responsibilities under those standardsare further described in the Auditor's Responsibilities for the Audit of the financialstatements section of our report. We are independent of the company in Accordance with theCode of Ethics issued by the institute of Chartered Accountants of India together with theethical requirements that are relevant to our audit of the Financial statements under theprovision of the Companies Act 2013 and the rules there under and we have fulfilled ourother ethical responsibilities in accordance with these requirements and the Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our opinion.
Key Audit Matters
Key audit matters (KAM) are those matters that in our professional judgment were ofmost significance in our audit of the financial statements of the current period; and
These matters were addressed in the context of the audit of the financial statements asa whole and in forming the auditor's opinion thereon and we do not provide a separateopinion on these matters.
|The Key Audit Matters ||How our audit addressed the key audit matter |
|Funds Utilizations || |
|Company has raised funds of Rs. 6.33 Crores through public issue of which Rs. 5.193 Crores are deposited in bank as Fixed deposits. ||We have communicated the observation to the management those charged with governance and the management has replied that they are in the process of identifying potential business and that the company would utilize the funds in the upcoming financial years to meet the objectives of the company. |
Management's Responsibility for the Ind AS Financial Statements
The Company's Board of Directors is responsible for the matters stated in section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance changes in equity and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the accounting Standardsspecified under section 133 of the Act. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingof the assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate implementation and maintenance ofaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statement that givea true and fair view and are free from material misstatement whether due to fraud orerror.
In preparing the Financial statements management is responsible for assessing thecompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the concern basis of accounting unless managementeither intends to liquidate the company or to cease operations or has no realisticalternative but to do so. Those Board of Directors are also responsible for overseeing theCompany's financial reporting process.
Auditor's Responsibilities for the Audit of the Ind AS Financial Statements
Our responsibility is to express an opinion on these Ind AS Financial Statements basedon our audit. We conducted our audit in accordance with the Standards on Auditing issuedby the Institute of Chartered Accountants of India. Those Standards require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether the Ind AS Financial Statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the Ind AS Financial Statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of theInd AS Financial Statements whether due to fraud or error. In making those riskassessments the auditor considers internal control relevant to the Company's preparationand fair presentation of the Ind AS Financial Statements in order to design auditprocedures that are appropriate in the circumstances but not for the purpose ofexpressing an opinion on the effectiveness of the entity's internal control. An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonablenessof the accounting estimates made by management as well as evaluating the overallpresentation of the Ind AS Financial Statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Companies Act 2013 we give in the Annexure "A" a statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable.
As required by Section 143(3) of the Act we report that: a) We have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purposes of our audit;
b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books ;
c) The Balance Sheet the Statement of Profit and Loss the Cash Flow Statement and thestatement of changes in equity dealt with by this Report are in agreement with the booksof account.
d) In our opinion the aforesaid Ind AS Financial Statements comply with the IndianAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.
e) On the basis of the written representations received from the directors as on March31 2019 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2019 from being appointed as a director in terms of Section 164 (2) of theAct.
f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B".
g) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand 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 financialposition in its Ind AS Financial Statements in Note 29 to the Ind AS Financial Statements;
ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts; iii. There has been no delay in transferring the amounts which wererequired to be transferred to the Investor Education and Protection Fund by the Company.
|For SPC&Associates |
|Chartered Accountants |
|FRN: 005685S |
|CA RLN Murthy |
|MRN: 217432 |
Annexure - A to the Auditors' Report
The Annexure referred to in Report on the Audit of Lex Nimble Solutions Limited Ind ASFinancial Statements for the year ended 31st March 2019 we report that:
i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets. (b) The Company has a regularprogramme of physical verification of its fixed assets by which fixed assets are verifiedin a phased manner over a period of three years. In accordance with this programmecertain fixed assets were verified during the year and no material discrepancies werenoticed on such verification. In our opinion this periodicity of physical verification isreasonable having regard to the size of the Company and the nature of its assets. (c)According to the information and explanations given to us and on the basis of ourexamination of the records of the Company there were no immovable properties are held inthe name of the Company.
ii) The Company is a service company primarily rendering software services.Accordingly it does not hold any physical inventories. Thus paragraph 3(ii) is notapplicable to the company.
iii) The Company has not granted any loans secured or unsecured to companies firmsor other parties covered in the register maintained under section 189 of the CompaniedAct 2013 (the Act'). Consequently clauses 3 (iii) (a) and 3 (iii) (b) of the Orderare not applicable to the Company.
iv) The Company has not made any transactions in the nature of loans investmentsguarantees and security where provisions of section 185 and 186 of the Companies Act2013 are applicable. Thus paragraph 3(iv) of the order is not applicable to the company.
v) Company has not accepted any deposits within the meaning of provisions of sections73 to 76 or any other relevant provisions of the Companies Act 2013 and the rules framedthere under. vi) The Central Government has not prescribed the maintenance of cost recordsunder section 148(1) of the Act for any of the products of the Company. vii) a) Accordingto the information and explanations given to us and on the basis of examination of therecords of the Company amounts deducted/ accrued in the books of account in respect ofundisputed statutory dues including provident fund employees' state insuranceincome-tax goods and service tax duty of customs and other material statutory dues havebeen regularly deposited during the year by the Company with the appropriate authorities.Further according to the information and explanations given to us no undisputed amountsare payable in respect of income tax goods and service tax duty of customs cess andother material statutory dues which were in arrears as at March 312019 for a period ofmore than six months from the date they became payable. b) According to the informationand explanations given to us there are no material dues of duty of customs income taxgoods and service tax which have not been deposited with the appropriate authorities onaccount of any dispute. viii) According to the information and explanation given to usthe Company does not have any loans or borrowings from any financial institutions banksGovernment or debenture holders during the year. Accordingly paragraph 3 (viii) of theorder is not applicable
ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. Accordinglyparagraph 3 (ix) of the Order is not applicable.
x) According to the information and explanations given to us no material fraud by thecompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.
xi) In our opinion and according to the information and explanations given to us andbased on examination of the records of the Company the Company has paid / providedmanagerial remuneration in accordance with the requisite approvals mandated by theprovisions of Section 197 read with Schedule V to the Act. xii) In our opinion andaccording to the information and explanations given to us the Company is not a Nidhicompany. Accordingly paragraph 3(xii) of the Order is not applicable.
xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with Sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in Note 27 to the Ind AS Financial Statements as requiredby the applicable accounting standards;
xiv) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has made preferential allotmentduring the year and the details have been disclosed in Note 12 of the Ind AS FinancialStatements.
xv) According to the information and explanations given to us the Company is notrequired to be registered under Section 45 IA of the Reserve Bank of India Act 1934.
|For SPC&Associates |
|Chartered Accountants |
|FRN: 005685S |
|CA RLN Murthy |
|MRN: 217432 |
Annexure - B to the Auditors' Report
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financial reporting of Lex NimbleSolutions Limited ("the Company") as of 31 March 2019 in conjunction with ouraudit of Ind AS Financial Statements of the Company for the year ended on that date.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India (ICAI'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.
Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the Ind AS Financial Statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of Ind AS Financial Statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of Ind ASFinancial Statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorizations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorized acquisition use ordisposition of the company's assets that could have a material effect on the Ind ASFinancial Statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31 March 2019 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.
|For SPC&Associates |
|Chartered Accountants |
|FRN: 005685S |
|CA RLN Murthy |
|MRN: 217432 |