Lex Nimble Solutions Ltd Management Discussions

a. Industry Structure and developments:

Lex Nimble Solutions Ltd is a leading provider in the IT sector, specializing in IT consulting, product development, support services, quality assurance solutions, and BPO services. Our core IT services primarily support our Parent Company, Lex Nimble Solutions Inc., while continually striving for high standards and innovation.

The IT sector continues to experience strong growth driven by increasing demand for digital transformation across industries. This expanding market presents significant opportunities for the company to broaden its service offerings and enhance operational capabilities. Lex Nimble Solutions Ltd remains committed to innovation and efficiency to maintain a competitive edge in this dynamic environment.

b. Opportunities and Threats: Strengths:

• Experienced Management team

• Strategic Location

• Efficient and skilled Employees

• Robust infrastructure and technology platforms

Weaknesses:

• Rapid technological changes causing obsolescence

• High employee attrition rate

• Dependence on IT network infrastructure

• Challenges in scaling during rapid growth

Opportunities:

• Expansion into new markets and geographies

• Growing global outsourcing trends

• Increasing demand for digital transformation (cloud, AI, IoT)

• Enhancing operational efficiency and cost reduction

Threats:

• Intense competition in the IT sector

• Fast-paced technology changes

• Security and cyber security risks

• Talent retention challenges

The company is fully committed to leveraging its strengths to capitalize on opportunities while actively addressing weaknesses and managing threats. This balanced approach positions the company for a positive outlook and sustained growth in the coming years.

c. Financial Performance Overview:

During the financial year 2024-25, Lex Nimble Solutions Ltd experienced growth driven by increased business volumes and the establishment of its overseas branch. The company managed operational costs in line with the expanded scale of activities, leading to improved profitability and earnings per share.

This performance reflects the companys focus on innovation, client acquisition, and operational efficiency. Looking ahead, management plans to continue building on these efforts by exploring new market opportunities and investing in technology and talent.

d. Outlook:

The company remains cautiously optimistic about the future, anticipating steady growth driven by ongoing demand for IT services and digital transformation initiatives. Expansion into new markets, both domestic and international, is expected to open additional revenue streams.

Management is focused on enhancing service quality, adopting emerging technologies, and strengthening client relationships to maintain competitiveness. While challenges such as technological changes and market competition persist, the company is committed to adapting and innovating to sustain long-term growth.

e. Risks and Concerns:

The company acknowledges the risks highlighted in the SWOT analysis, including technological changes, employee retention, cyber security, and regulatory challenges. To address these, management has implemented proactive risk management practices, ongoing employee training, technology upgrades, and strict compliance measures to safeguard operations and ensure business continuity.

Additionally, exchange rate fluctuations pose a concern as a significant portion of the companys customers are based in the USA. Global economic, political, and social factors?such as fiscal and monetary policy changes and inflation?are beyond the companys control but can impact business performance. The company actively manages exchange rate risk through pricing strategies aimed at minimizing currency volatility exposure.

f. Internal Control Systems and Their Adequacy:

The Company has implemented effective systems and processes to safeguard its assets and ensure accurate financial reporting. These measures help prevent fraud and errors by maintaining thorough and transparent accounting records while promoting accountability across all levels of the organization. The systems also facilitate risk assessment and ensure compliance with applicable laws and regulations.

Regular internal audits are conducted to evaluate the effectiveness of these controls, and the statutory requirement for an internal auditor for listed companies further strengthens the control framework.

Management remains committed to continuously reviewing and enhancing these controls to address evolving business needs and risks.

g. Material Developments in Human Resources / Corporate Relations including Number of People Employed:

During the financial year 2024-25, the Company focused on strengthening its human resources by attracting and retaining skilled professionals essential to support its growth and operational needs. It consistently provides expert training and development programs to enhance employee skills, morale, and engagement.

The employees have shown strong cooperation with management in driving the Company towards greater success. Performance appraisals and welfare measures have contributed to maintaining healthy corporate relations and a positive workplace culture. The total number of employees as on 31.03.2025 is 20.

On the corporate relations front, the Company continued transparent engagement with stakeholders, promoting trust and collaboration, while actively pursuing initiatives to improve corporate governance and compliance.

h. Details of Significant Changes in Key Financial Ratios:

S. No. Ratios	For the FY 2024-25	For the FY 2023-24
1 Debtors Turnover Ratio	13.8	9.9
2 Current Ratio	14.0	23.1
3 Debt Equity Ratio	0.0	0.0
4 Operating Profit Margin Ratio	0.2	0.3
5 Net Profit Margin Ratio	0.2	0.2
6 Return on Net Worth Ratio	0.1	0.1