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.
|