# 16054,28th Main Road,

29th Cross, Banashankari2nd Stage

Bengaluru - 560 070
MURALI & VENKAT
T€l : 080-2671 4185, 2671 0s31 Chartered Accountants

INDEPENDENT AUDITOR,S REPORT

To the Members of M/s. LAVEttE NETWORKS PRIVATE LIMITED

ReEort on the Financial Statements:

We have audited the accompanying Financial Statements of M/s. IAVEtLE NETWORKS PRIVATE
LIMITED, ("the Company"), which comprise the Balance sheet as at March 31, 2018 and the
Statement of Profit and Loss for the year then ended, the Cash Flow Statement for the year then
ended and a Summary of Significant Accounting Policies and other explanatory information.

Manaeement's Resoonsibilitv Ior the Financial Statements:

The Company's Board of Directors is responsible for the matters stated in Sectlon 134(5) of the
Cornpanies Act 2013 ("The Act") with respect to p.eparation and presentation of these financial
statements that give a true and fair view of the financial position, financial performance and cash
flows of the Company in accordance with the accounting principles generaljy accepted in ndia,
including the Accounting Standards specified under section 133 of the Act, read with Ru e 7 of
the Cornpanies {Accounts) Rules, 2014.

This responsibility also includes maintenance of adequate accounting records in accordance with
the provisions of the Act for safeguarding the assets of the Company and for preventing and
detecting frauds and other irregularities; se ection and application of appropriate accounting
pollcies; rnaking judgrrents and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls, that were operating
effectively for ensuring the accuracy and completeness of the accounting records, relevant to the
preparation and presentation of the financial statements that give a true and fair view and are
free frorn material rnisstatement, whether due to fraud or error.

Auditor's Responsibilitv:

Our responsibility is to express an opinion on these financial statements based on our audit. We
have taken into account the provisions of the Act, the accounting and auditin8 standards and
matters which are required to be included in the audit report under the provisions of the Act and
the Rules made there under.

We conducted our audit in accordance with the standards on Auditing specified under Section
143(10) ol the Acl. Tho\e Slardards .equ're that we comply with ethical requirements and plan
and perform the audit to obtain reasonable assurance abolrt whether the financial statements
are free from material misstaterrent.

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# 11/2C SheMood Aparhents, Ramalinganagar 5th Cross K K Pudu. Post Cormbalore _ 641 018 (rN )

# 304 2nd Floor, K. R. Hospilal Road, [,4ysuru - 570 001

# 701 Darshan Building Raghunalh Dadaji Street, Fort, lvl!mbar- 400 001
# C335, 3.d Floor, Big Splash, Sector l7. NearVash Bus Depot Vash, Nav Mumba!_ 400 703
An audit involves performing procedures to obtain audit evidence about the amounts and the
disclosures in the financial statements. The procedures selected depend on the auditor's
judgment, including the assessrnent of the risks of material misstatement of the financial
statements, whether due to fraud or error. ln making those risk assessments, the auditor
considers internal financial control relevant to the Company's preparation and fair presentation
of the financial statements that give a true and fair view in order to desiSn audit procedures that
are appropriate in the circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting estimates made by
management, as well as evaluating the overall presentation of the Financial Statements

We believe that the audit evidence that we have obtained is sufficient and appropriate to provide
a basis for our audit opinion on the Financial Statements.

Opinion:

ln our opinion and to the best of our information and according to the explanations Siven to us,
the Financial Statements give the information required by the Act in the manner so required and
give a true and fair view in conformity with the Accounting Principles generally accepted in lndia:

(a) ln the case of the Ealance Sheet, of the State of Affairs of the Company as at March 31, 2018;
and,
(b) ln the case of the Statement of Profit and toss, of the Loss for the year ended on that datej

(c) ln the cash flow statement for the year then ended.

ReDort on other Leqal and ReEulatory Requirements:

1. As required by the Companies (Auditor's Report) Order, 2016 ("the Order") issued by the
Central Government of lndia in terms of sub-section (11) of section 143 of the Companies Act
2013, We give in the Annexure A, a statement on the rnatters specified in paragraphs 3 and 4
of the said Order to the extent applicable.

2. As required by section 143(3) of the Act, We report that:

a) We have sought and obtained all the information and explanations which to the best of
our knowledge and belief were neiessary for the purpose of our audit;

b) ln our opinion, proper books of account as required by law have been kept by the
company so far as appears from our examination of those books;

c) The Balance Sheet, Statement of Profit and Loss and the Cash Flow Statement, dealt with
by this Report are in agreement with the books of account;

d) ln our opinion, the Balance Sheet, statement of Profit and Loss and the Cash Flow
Statement comply with the Accounting Standards specified under Section 133 of the Act,
read with Rule 7 of the Companies {Accounts) Rules, 2014.

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 e) On the basis ofwritten representations received from the Directors as on March 31, 2018,
and taken on record by the Board of Directors, none of the Directors is disqualified as on
March 31, 2018, from being appointed as a Director !n terms of section 164(2) of the Act.

With respect to the adequacy of the internal financial controls over financial reporting of
the Company and the operating effectiveness of such controls, refer to our separate
report in "Annexure B"; and

c) With respect to the other matters to be included in the Auditor's Report in accordance
with Rule 11 of the Companies (Audit and Auditors) Rule, 2014, in our opinion and to the
best of our information and according to the explanation given to us:

i. The company does not have any pending litigations to disclose in the financial
statements.
. There are no material foreseeable losses assessed during the year and hence no
provision is required to be made at the reporting date by the Company, as required
under the applicable Law or accounting standards, for material foreseeable losses, if
any, on long term contracts including derivative contracts.
. The company does not have any amounts to be transferred to lnvestor Education and
Protection Fund.

For MURALI & VENKAT

Chartered Accountants

Partner
Membership Number: 028348
Firm's Registration Number: 0021625
Place: Bangalore.
Date: 21st September, 2018

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 ANNEXURE-A TO THE COMPANIES AUDITOR'S REPORT OROER. 2016
(Referred to in paragraph 1 of our report of even date)

a) The Company has maintained proper records to show full particulars including
quantitative details and situation of all Fixed Assets.
b) The Fixed Assets of the Company have been physically verified by the Management
during the year at reasonable intervals and no discrepancies between the book records
and physicalverification were noticed on such verification.
c) According to the information and explanations given to us and on the basis of our
examination of the records of the Company. there are no immovable properties held in
the name of the Company. However, the Company has proper titles to the Leased
Properties held in its name.

. a) The lnventories consist only Work in progress related to services provided by the
Company and the same has been evaluated/verified by the Management. ln our opinion,
the frequency of verification is reasonable.
b) ln our opinion and accordingly to the information and explanations given to us, we have
not come across any material discrepancies between the actual progress achieved and
inventory records.

. ln respect of the loans, secured or unsecured, granted by the company to companies, firms,
limited liability partnerships or other parties, covered under Register maintained under
section 189 of the Act, We report that:

a) The Company has not granted any loans, secured or unsecured to companies, firms,
limited liability partnerships or other parties listed in the Register maintained under
section 189 of the Act.

b) Sincethe company has no loans granted, secured or unsecured, the aeporting on terrns
and conditions for such Loens, repayment of Principal or lnterest and any overdue
thereon, does not a rise.

iv. ln our opinion and according to the information and explanation given to us,
a) The provisions of the Section 185 of the Act, are not applicable to the Company, being a
Private Limited Company and hence the reportinB on the Compliance with the Provisions
of the section does not arise.

b) As per the Provisions of section 186 of the Act, the company has not Siven any loan,
guarantee or security in connection with a loan to any person or other body corporate
and acquiring securities of any other body corporate. Hence, reporting on the
Compliance with the provisions ofthe section does not arise.
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 The company has not accepted any deposits from the public, as per the provisions of section
73 to 76 or any other relevant provisions of the Act, and the rules framed there under.

ln our Opinion, the maintenance of Cost records under section 148 (1) of the Companies Act,
2013 pursuant to the rules made by the Central Government is not applicable to the
Company, as the activities ofthe Company do notfall underthe categories covered bythe
Companies (Cost Records and Audit ) Rules, 2014.

a) The Company is Senerally regular in depositing the undisputed Statutory dues with
Appropriate Authorities and there are no undisputed and outstanding amounts payable
in respect of Provident Fund, Employees'State lnsurance, lncome Tax, Service Tax, Sales
tax. Duty of Customs, Duties of Excise, Value added tax, Cess, CGST/SGST/IGST and any
other taxes, Duties or Levies applicable to the Company. The business has no remained
outstanding dues ofStatutory Payments as on 31st March 2018, fora period ofmore
than six months from the date they became payable.

b) There are no disputed liabilities with regard to lncome Tax, Sales Ta).; Service Tax, Duty of
Customs, and Duty of Excise/ Cess CGST/sGST/IGsT or Value added Tax as on 31.03.2018.

ln our opinion and according to the information and explanation given to us, there is no
default in repayment of principal dues in respect of loans borrowed from Banks and there
are no Borrowings from Government/Financial lnstitutions. AIso there are no debenture
holders with the Company.

tx. ln our opinion, the Company has not borrowed any Term Loans for a specific purpose and
being a Private Limited Company, no moneys shall be raised by way of public offer or further
public offer by the Company and hence our reporting on the disclosure of the application of
funds, in respect of Term Loans, initial public offer or further public offer is not made.

x. According to the information and explanations given to us, no fraud by the Company or any
fraud on the Company by its officers or employees has been noticed or reported during the
course of our audit.

xi. ln our Opinion, the provisions of Section 197 of the Act, with regard to the mana8erial
remuneration are not applicable to the Company, being a Private Limited one and hence our
reporting on the disclosure of Compliance with the provisions does not arise.

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 ln our opinion and according to the information and explanation given to us, the Company is
notaNidhi Company. Accordinglyparagraph3{xii)oftheorderisnotapplicable.

a) ln our Opinion, the provisions of Section 177 of the Act, with regard to the role of Audit
Corrmittee are not applicable to the Company, being a Private Limited one and hence
our reporting on the disclosure of Compliance with regard to the related party
transactions under this section does not arise.

{b} According to the information and explanation Siven to us and based on our examination
of the records of the Company, transactions by the Company with the related parties
are in compliance with section 188 of the Act, and details of such transactions have
been disclosed in the Financial statements as required by the applicable Accounting
Standards.

According to the information and explanation given to us and based on our examination of
the records of the Company, the Company has made preferential allotment/private
placement of Preference shares during the year and the same is as per the provisions of
Section 42 of the Act. The Company has not issued any fully or partly convertible debentures
duringthe year, so as to adhere to the provisions ofSection 42 ofthe Act.

According to the information and explanation given to us and based on our examination of
the records of the Company, the Company has not entered into non_ cash transactions with
Directors or persons connected with him and accordingly our reporting on the disclosure of
Compliance with the provisions of section 192 of the Act, does not arise.

The Company is not required to be registered under section 45 lA of the Reserve Bank of
lndia Act 1934.

For MURALI & VENKAT

Chartered Accountants

Partner
Membership Number: 028348
Firm's Registration Number: 0021625

Place: BanEalore.
Date: 21st September, 2018
 Annexure - B to the Auditors' Reoort
Report on the lniernal Financial Controls under Clause Iil of Sub-section 3 of Section 143 of the
Companies Act. 2013 l"the Act")

We have audited the internal financial controls over financial reporting of M/s. LAVEI'IE
NETWORKS PRIVATE LIMITED ("the Company") as of 31st March 2018 in conjunction with our
audit of the financial statements of the Company for the year ended on that date.

Manasement's ResDonsibilitv for lnternal Financial Controls:

The Company's rnanagement is responsible for establishing and malntaining internal financial
controls based on the internal contaol over financial reporting criteria established by the
Company considering the essential components of internal control stated in the Guidance Note
on Audit of lnternal Financial Controls over Financial Reporting issued by the lnstitute of
Chartered Accountants of lndia ('lCAl'). These responsibillties lnclude the design, implementation
and maintenance of adequate interna financial controls that were operating effectively for
ensuring the orderly and efficient conduct of its business, including adherence to company's
policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the
accuracy and completeness of the accounting records, and the timely preparation of reliable
financial information, as required under the Act.

Auditors' Responsibilitv:
Our responsibiLity is to express an opinion on the CompanY's internal financial controls over
financial reporting based on our audit. We conducted our audit in accordance with the Guidance
Note on Audit of lnternal Financial Controls over Financial Reporting (the "Guidance Note") and
the standards on AuditinB, issued by lCAl and deemed to be prescribed under section 143(10) of
the Act, to the extent applicable to an audit of internal financia controls, both applicable to an
auditoflnternal Financial Controls and, both issued bythe nstitute of Chartered Accountants of
lndia. Those Standards and the Guidance Note require that we comply with ethical requirements
and plan and perform the audit to obtain reasonable assurance about whether adequate internal
financial controls over financial repoiting was established and maintained and if such controls
operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the
internal financial contro s system over financial reporting and their operating effectiveness Our
audit of internal financial controls over financial reporting included obtaining an understanding of
internal financial controls over financial reporting, assessing the risk that a material weakness
exists, and testing and evaluating the design and operating effectiveness of internal control based
on the assessed risk. The procedures se ected depend on the auditor's judgment, including the
assessrnent of the risks of material misstatement of the financial statements, whether due to
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion on the Company's internal financial controls system over financial
reporting.

Meaning of lnternal Finanaial controls over Financial Reporting:

A company's internal financial control over flnancial reporting is a process designed to provide
reasonable assurance regarding the reliability of financial reporting and the preparation of
financial statements for external purposes in accordance with generally accepted accountlng
principles. A company's internal financial control over financial reporting includes those policies
and procedures that, {1) pertain to the maintenance of records that, in reasonable detail,
accurately and fairly reflect the transactions and dispositions of the assets of the company; (2)
provide reasonable assurance that transactions are recorded as necessary to permit preparation
of financial statements in accordance with generally accepted accounting principles, and that
receipts and expenditures of the company are being made only in accordance with authorizations
of management and directors of the company; and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorized acquisition, use, or disposition of the company's
assets that could have a material effectonthe financial statements.
lnherent Limitations of lnternal Financial Controls over Financial ReporiinP:

Because of the inherent limitations of internal financial controls over financial reporting,
including the possibility of colJusion or irnproper rnanagernent override of controls, material
misstatements due to error or fraud rnay occur and not be detected. Also, proiections of any
evaluation of the internal financial controls over financial reporting to future periods are subject
to the risk that the internal financial control over financial reporting may become inadequate
because of changes in conditions, or that the degree of compliance with the policies or
procedures may deteriorate.
opinion
ln our opinion, the Company has, in all material respects, an adequate internalfinancial controls
system over financial reporting and such internal financial controls over financial reporting were
operating effectively as at 31 March ?018, based on the internal control over financial reporting
criteria established by the Company considering the essentlal components of internal control
stated in the Guidance Note on Audit df lnternal Financial Controls over Financial Reporting
issued by the lnstitute of Chartered Accountants of lndia-

For MuRAtl & VENKAT

Chartered Accountants

)hxr
Partner
Membership Number: 028348
Firm's Registration Number: 0021625
Place: Bangalore.
Date: 21st September, 2018
 LAVELLE NETWORKS PRIyATE LIMITED
(Reg. Officer f3163/2, 2nd Floor, 12th A lMain,HAL 2nd Stage, Domlur Main Road, lndira Nagar, Bangalore - 560 038)

BALANCE SHEET AS AT 3lst MARCH, 2018

r. Equlw ANp L|ABrLrTrEs

(1) shareholder's F!nds
(a)Share Capital 1 a,ao,oso 4,53,400
(b) Reserves and surplJs ? 41,67,764 3,34,44449

(21 share application money pending aliotnrem a 4U,Sl,Art

(a) lon<nrrent tiabitities

(a) Long Term Borrowrngs 4 1l!4,9s0 a,23,157
(b) Deferred Tax Liabilities (Net)

(4) Current l-iabilities

(a) Short Term Borrowings 5 41,g7,A3g 32,34,OOO
(b) T,e!9j!r9q!!' 6 19,O3,647 1364?0
(c) Other C!rrent LiabiLities 7 2,45,47,619 57,30,015
(d) lncome Tax Provision 4,36,040
Total a,62,ta,700 4,59,37,491
lt. AssETs
11) Non-Current Asselti
(a) Fixed Assets 8
(D Tangible Assets 7,Or79,103 39,1s,162
(ii) lntangible Assets 88,91,518 7,17,O7,110
(b) Long Term Loans and Advances 9 6,25,000 6,00,000
(c) Other Non Current Assets
(d) Deferred TgI Asset (Net) 10 120,65,2g2 40!93
(2) Current Assets
(a) lnventories WIP - Services 1,go,3g2
(b)Trade Receivables 11 51,O4,593 1235,383
(c) cash and cash equivalents 12 4 AA,98,583 2,77,37,O94
(d) Short Term Loans and Advances l
(e) Other Current Assets 13 3454,28 13,01,939
Total a,52,14,700 4,s9,37,491
,iqnilicdnt Accounting Policiet ond Notes to Accounts 18

The Notes form an lntegral part ofthese FinancialStatements

As per our Report ofeven date

For MURALI & vENKAT For LAVELLE NETWORKS PRIVATE LIMITED.,
Chartered Accountants

P rivaie L inl ited

MADHAVA KARTHIK
Partner DirecBqfe ctor Director
Membership Number: 028348 Dtrecior
lCAl's Firm Registration No. 0021625.
Banga lore, 21st septemu"l- zfl6Z:'..1':-':"

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 LAVELLE NETWORKS PRIVATE LIMITED
(Ree Office ,3163/2, 2nd Floor, 12th A Maln,HAL 2nd stase, Doml!r Maln Road, lndiE Nasar, Banga ore _ 560 038)

STATEMENT OF PRoFIT AND LOSS FoR THE YEAR ENDED 3lst MARCH, 2018
ai at As at
31-03.2018 al],ts-2017
I Revenue from operations 65,30,322 2,3139,2O9
II Other lncome 14 1,50,430 12,834
Total Revenue (l+ll) 66,AO,752 2,31,72,O43

ExpenSes:
(hanges :1 Wo'k n o'oB'ess _5e-vice5 1s llso,sszl 38,ers2o
4,9a,t92 4,15,946
Emp oyee benefit expenses E 2,7 t

Finance Costs 11 s,53J94 1,00,531

Other Expenses 18 223,s2,298 79,61,180
Depreciation 8 46,48,253 16,32,656
TotalExpenses s,4a,62,s45 2,10,66,833

ProIit before exceptiqnal items and tax (lll _ lV) l4,s1,,8L,7931 2t,o5,210
I xceotior" ter5 (P'or Period ltens)
v Profit before extraordinary items and tax (V Vl) 14 ,8L,81,793) 27,45,210
vl Ext'ao'd rarv lterrs
tx Profit Eefore Tax (vll - Vlll) 14,81,A1,7931 21,05,zt0
x Tax expense:
(1)Current ncolre lar 436,0;4a
(2) MAT credlt entlt ement . 4.U,148
(3) Delerred rax -iao lity / {AsserJ 11,2o,24,489) (40,803)
0,2a,24 ,489) (s.911)

xt ProrirAlter 'ax f'om contrnued ope'at'ons ( Xj x) {,3,61,s7 3A4) 21,1L,121

xI pro'itj'o_n D,iLontir-ed Ooelalio_s
x PrcIit/(Loss) for the Year (Xl + Xll) 13,61,57,3O4') 2t,tl,L21
xtv Earning p9r equity share of Re 10 each
(?4e1.48) 157.15
lllllJi. 157.15
(2) Diluted 12,697.481
Siqnificont Accounting Policies dnd Notes to Accounts 18
The Notes form an integral part of these F nanc al Statements
As per our qeport ol even date
For MURAI-I & VENKAT For LAVEI-LE NETWORKS PRIVATE LlM|TED,,
Chartered Accountants

v L. snx*-h
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UtA€,'4{^\ry:
VENKATESH v -
" SHYAIVIAL Kl,
Lftfinffirt14Jlrrw
'iUtISHi6/A IARTI{|IG le L nrted
Partner Director Director
Membership Numbefl 028348 Il I
Director
Firm's Registration No. 0021625
Bangalore, 21st September 2018
 LAVELLE NETWORKS PRIVATE LIMITED
(Reg. Office: 13163/Z 2nd Floor 12th a Malf,HAL 2fd stase, DomlurMain Road,lndra Nagar, Bansalo.e - s60 03a)
HEYEAR EI{DIDS1* MANCH 2O1a

1- CASH FLOW FROM OPERAIIIG ACTMIIIES:

Net ProUt before tax aid enra ordinary items (4,31,31,793) 2L,05,2t0

oepreciation 46,44,253 t6,32,656

Other ncome {1,50,430) (32,334)
lnt.rest & Finance Charses l,)7,090
52,02,214 7),26,9L2
OPERAIII{G PROFII BEFORE WORKII{G CAPITAT CHANGES 14,29,r9,5501 44,42,722

(ln.rease)/D.crease in Irade Receivab es (44,59,210) (12,3s,383)

(lncrease)/D€crease in other curent ass*s 121,62,219) \s,41,2261
(rncrease)/oecrcase in nventories (1,90,392) 34,95,420
(rncrease)/De.rcase in short term Loans &Advaices
CUNRENTLIABITITIES:
ncrease/{Decr€ase) in short Term sorowins5 15,13,039
ncrease/{Decrease) in Trade Payables 5,4t,2t1 t2,48,491
ncrease/(Decrease) in short term Provislons (4,36,040)
ncrease/(Decre.se) in other curent Liabilities \84,51,624 1,35,53,953 (27,38,335) 30,05,407
Cash Generated From Operations 12,93,25,@71 63,32930
Cash F ow before ertra ordinaryitems

14,01,143)
34,492
NET CASH FROM OPERATING ACTIVITIES {A} 12,93,25,5O7) 63,01038

Z. CASH FLOW FROM INVESTI G ACTIVIIIES:

(88,96,603) 11,41 ,76,5e1)

1,50,430 12,434
Advancet ior Fixed Assets
LongTerm Loans & Advances and Others (25,0O0) 2,0q000
Non Curent nvesiments
NET CEsH fROM INVEsTI'{G ACTIVIIIES (B) le1 ,71t1731) 1r,45,4a,7471

3. CASH Ft OW FROM F[rlA[CtNG ACflVtTtES:

{Derease)/increase in Share Gpital 26,650 3,53,400
lncrease ln Share Premium 3,78,60,5s2
rc edse -sh.r.ApplL/rrcnvoneypendingro'allorrenr 4,47,53,6t7
N.t Receipt/(Repavm€.t) oi secured loans 1,17,793 a,23,!51
nterest & Flnance Charget (7,M,411) 11,27.o90\
t{ ET CASH FROM FtNAt{CtIrtG ACTTVITTES (C) s,a2;s4,259 3.39.10,019

Net lice.3ellDeoease) in carh & Caih Equival€ s lA + B + cJ L,71\57490 2,51,69,310

Add: c.sh & cash Equivalehts atthe Becinnine ofthe Ysar 75,61,144
444.93,543 2,77,37,O54

Ca5h & C.rh tquiv.lenBatthe fnd oftheY..r 4'8,93,s33 2,77,37,9t4

1. cash & cash Equlva ents repp5ents Cath & sank Balances and deposits with B.nks as per

2. Th.a.sh Flow Statement has been prepared under the ' nd red metho;' as ret out in th€ Ac.ounhns slandard (A5_3),

"Cash Flow Statement

3 The Fislres in bracket representthe cash Outllow andthelisures havlng no bracket
reprete nts th e Cash lnflow.
This is the c.sh Flowstatement we have refered to, in our Report ot €ven date
FOT LAVELLE NETWORXS PRIVATE LIMITED.,

Lim iled

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 LAVETLE NETWORKS PRIVATE LIMITED

lReg. Offce: ,3163/2, 2nd Floor, 12th A Ma n,HAL 2nd stage, Dom ur Main Road, ndira Naear, Eanga ore 560
038)

NOTES TO THE FINANCIAT STATEMENTS AS AT 31,03.2018

Notel'sharecapital
EquityShare Capitall

80,000 Equity Shares of Rs.10/ each 8,00,000 8,00,000

{Last year :80,000 Equlty Shares of Rs.10/ each)
20,000 Preference Shares of Rs.10/ each 2,OO,AOO 2,00,000
(Lart year : 20,000 Preference Shares of Rs.10/' eich)

31,906 Equlty Shares of Rs 10/ each 3,19,060 3,19,060

(Outof thesame,31,806 EquitySharesof Rsl0each were sued
and Paid up and 100 Equ ty shares of Rs 10 each, were sued and
Paid up at a Premium of Rs. 2,428l per share)

(Last year: as same as in the curcnt year data)

l!9 e o'e'e-e1ce)-d-\ or q..r0/ Pdr- 1,60,990 7,34,344

(13,434 Preference Shares of Rs.l0l- each)
( Out ofthe same, 16,099 Preference Shares of Rs 10 each, were
ssued at a Prernium of Rs. 2,428l= per share)

The Company has on y one c ass of equlty shares havlns a par va ue of ns 10 per share Each
Shareholder is e is ble for one vote per share. n the event of iquidatlon, the equ ty shareho ders are
e iglb e to receive the rema ning assets of the Company, after distr but on of a I preierentla amounts,
in proportion oi their shareholdins.
Det lb of sh.r.s held by .ll siareholdeB of th. Comp.ny .r on 31,03.2018

EqulT/ sHAiaHorDERs
LO,!52 31.3 10152 31 32
31.3 31.32
31.3
2.3
i5i )Z 752
' 100

PiEFIRENCE SHAREI{OLDE
 LAVEI-LE NETWORKS PRIVATE LIMITED
(R€g. Offce: s3163/2, znd Floor, 12th a Main,HAL 2nd stage, Dohlur Main Road, lndira N.8ar, Bangalore 560
038)

NOTES TO THE FINANCIAL STATEMENTS ASAT 31.03.2018

Note 2-ReseNes & Surplus

opening Balance
add/(Less): Balance
Closins Balance

ties Premium Rese

EquityShare Premuim z,42,aoo 2,42,4OO

{The share Premium is on 1OO EquiwSharesof Rs 10 at Rs.2,428l_

3,90,44,372 3,26,77,752
(out ofthe same,16,099 Preference Shares of Rs 10 each, ca iesa
Premium of Rs.2,428l= pershare)

rotar la) +(bl

Note 3 -
Share Applicaiion Pending Allotment
shareApplication moneyfrom ldeasprings Capital
(7,804 Preference Shares of Rs 10 each considered to issue shares,
carries a Premium of Rs.6237.26 per share, pending allotment)

Note4- LongTerm Borowings

Loan from HDFC Bank 75,34,950 4,23,157

(The Loan drawn Rs 25,00,000 the nature ofUnsecured one
i5 in
forthe Purposes ofthe Business ofthe Company, carrying lnterest
@1s% p.a, repayable in 36 Months periodl
NOTE:The current Maturities ofthe Loan Rs 7,48,589 payable in
the next 12 months is disclosed in "OtherCurent Liabilities"

Note 5 ShortTerm Borrowings

12,05,000 5,50,000
11,25,OOO

Trivikram Rao Vepakomma 14,67, 22,64,000

S.Thilagavathi 40o,0oo
 I.AVELLE NETWORKS PRIVATE LIMITED
(Reg. offce: s3163/2,2ndFloor,l2lhaMan,NAL2ndstagc,DomurMainRoad, ndira Nagar, Bansalore 560
038)

NOTES TO THE FINANCIAL STATEMENTS AS AT 31.03.2018

31,O3.2018 3!-tt3.2017

NoteS-TradgPayables
Sundry Creditors for 5ervices 19,03,647 13,62,8A
19,03,641 13,62.4!O

ilot;7 " other current liabilities

(d) (rl!rips dnd orler oen"l r\ odyro p - 5 r' zs,salss ro,os,osr
b)statutory Llab li1i9s :

rqlPry4q 27,99,a56 7,75,134

PT PaVable 5,200 5,513
PF Paya! e 3,42,O55 z,qz,gss
ES C Payable 7,15L 3,543
c) Sundry C.editors for Expenses 14,62,494 27,15,857
d) nterest Payable 26,544 L4.168
e) Advances Received asainst 5ervices 64,380 5,71,914
f)curent Maturities of Longterm Loan HDFc bank 7,44,649 4,55,018
s) Unrecosnlsed Revenue Ref point no 3(c)to Note 1s (A) 8814!4! l
(i) Prefererge Share Divideld Payable 24 :
(i) Expenses payable to Employees 17,24,981

2.45.57.539 57.30.015

ruotEa-FixedAsiEts

Note 9 - Lang Term LoanS and Ad\,ances

a)Securty Deposits
Renta Deposit Office 6,!q000 6,00,000
Reliancelio Deposit 5,000
Renta Deposit Aylth 20,000
Total 6,25,000 6,00,000

Note 10 - Deferred ta* asset/ {iiability}

Opening Defered Tax Asset 40,803
Add: Defereq TaxAssetfo.the year t,26,15,443 40,803
Less: Defered Iax Llabiity for the year (6,s0,9s4)

1.20.65.292 40,803
Noae 11, Tr;e Re.;bles
la) outstandinE for a perlod qreelils r1* .."tt'r f,". *
date they are due for paymeft UnsecuJed, consldered Cood
Total(a

(b)OGtandlngfor a period notexceedinesix monthslrom the

aut" tf"v ur" Or" t., prv-ent Unsecured, considered sood
as agalnst Revenue recoCn sed 12,35,343
as agalnst Unrecognised Revenue 57,04,593
r"iil
/ >^-.,\ tei 57,04,593 r2,35,383

:, {.,IE-tart,rt*tst 57,04,591 12,35,3a3

i i\. 5],r17 tl ",,

 LAVELLE NETWORKS PRIVATE TIMITED
(Reg. Otricer t3163/2,2nd F oor,12thA Main,HAL 2rd Stage, Domlur Ma n Road,lnd ra Nagar/ 8a.sa ore 560
038)

NOTES TO THE FINANCIAL STATEMENTS AS AT 31.03.2018

3!Dr.20L7

Note 12 - Cash ald €ash Equivalents

3,925 ?,!33
Bank sa ances ln Cu(entAccounts
Balance wlth HDFC Bank - 6678 ?:l!,8a8 1,12,?91
grlererr] M! qlrlri!! 2)4,134 42,743
Bdldle! tr lorc Baik 5937 4,\7,57,162 2,72,95,492
Bala-rewth lDlC Ba.l 8/9, 1,34,164 2,63,441
B"r"!.!]ry!tqi! q9!!jl! l
Bala.cewth Kotak Mahindra Account 1,03,664
HDFC EorerplusTravelCard 4,621 73,57g
Term Deposits with Banks
Term Depositwlth Kotak Mahindra Bank {For 12 MontD 3,00,000

4,48,98,583 4.77.17.O94

Note 13 - Other Current Assets

5"f..yAdrr"L 23;:! L,70,496
!]],701 1,11,600
Advance to Suppllers 1!,106
GST nput Tar Credits t9,at,o24 :
lnputVATAvailable 734
ServlceTax lnput Credits 6,18,567
lncome Tax MATcred t entitlement 4,01,1,44 4,O1,148

lr!pJtq !p!!t!: 74,918

lnterestAccrued on Term Deposits 16,301
34,64,214 13.01.939
Note L4 - Other lneome
46,749
1,8,1]L
Other ncome 2.sll
Sundry Ealances written Back 83,048
1,50,430

Note 15'Chanees in Work in Progress'Servi.es

OpeningWlPofServices {38,9s,820)
CloslngwlP ofServices t-so,zgz
11,90,392) 38,95,820

Note 16 - Emplovee Eenefit Expenses

Salaryto Emp oyees z,zq,ot,qlt 7o,ir:iA
Dkectors Remuneration 33,66,7s0
1t,stz
Staff we fare Expenses 7,24,611 3,54,641
2,74,94,792 74 75.946

Nole 17 - Finan.e Casts:

lnterest on HDFc Loan 2,5\,134 1,00,631
-*,,"" L"i"i
r - r -' .' ),41,857
"t*.t "" *
oan Proceseie chd-e"s . . .r---\.- lr- 39,089
nte.estolc,ed,tca.ds L,,,X' V 20,420
\ -'^,)r" 'r Tora .s3.594 100.6f1
 I,AVELI.E NETWORXS PRIVATE LIMITED
(Reg- Ofiice: *3163/2,2id floor,l,2th A Main,HAL2nd Stage, DomlurMain Road,lndna Nagar' Ban8alo.e 560
038)

NOTES TO THE FINANCIAL STATEMENTS AS AT 31.03'2018

Note 18 - Other Expenses

services, could Portand Te€hnology Charges 71,29,691 7,43,145
33,74,\69 1,81,909
1,60,000 1,40,000
75,14O
64,221
6,68,695 4.45,145
Postage & courier Charges 5,89,554
PrintinS & Stationery t,@,463
35,08,604 18,94,410
VATineligibles
to,*,qlz 84!2q
Telephone & lnternet Expenses 9,80,430 12,00,565
Travellins & Conveyance Expenses 32,16,199 79,27,610
Repairs & Maintenance - Others
Repairs & Maintenance - Computers 2,71,753 2,050
60,29O 1,40,163
7,5O,4t7
2,30,669 1,09,496

Claims and Dis.ounts 2,1,1,455

11,517
sundry Balances Wri$en Off 2,06,435

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 IAVEtLE NETWORKS PRIVATE TIMITED
_ 560 038)
(Reg. Officei {3153/2, 2nd F oor, 12th A Main,HAL 2nd stage, Domlur Main Road, lndira Nagal, Banga ore
NO1E 78: Significont Accounting Policies ond Notes to Accounts

1
(a) n"finun"iut r t"."ntt,re prepared underthe hlstorical cost convention ln accordance with the genera lv
accepted accounting principles in lndia, inc uding the Accounting Standards specified under Se.tion 131 of thel
Act, read wlth Rule 7 oi ihe Compan es (Accounts) Rules, 2014. The Financia Statenrertt are Prepared .s pe1
Schedule lllofThe Companies Act 2013 in consensus wlth section 129 of the Act.
I

(o) 'e p'eoardt o- or fir.'c'a slarerent, req-i es eslinates a'd ds5umor'o's t'at dll*r I-e ,€port; .."-'rsl
of Assets and Liabilities on the date of the financlal statements and the reported amount of Revenues andl
Expenses during the year . Difference between the actual results and the enimates are recoCnlzed in the per odl
rn wnrch the 5dme e lnown

2 I]IED49!EIS
(a) Iels]llelqrda$rq
Tangib e Fixed Assets are capita Ded r.qrititior, .*t i,"tuaing directly attributable cost such as frelght
insurance and specific
"t
insta lation charges for bringing the asset to its working condition . Enancia costs,
incured upto the date of cor.mission ng the aset, are capita ized as per accounting Standard 15 ksued bv the
tcAt.

(b) rntanErb e EiIclLAllcEl

lntangib e tusets are recognized on y if it is probable that tlre rutrt" l"*rltt that are attributab e to
".ono.l.
the assets wilL flow to th€ company and the cost of the assets can be measured reliably. The ntan8 b e assets
are re.ordFd ai.ost and are caried at cost less accumu ated amorlization :nd accumu ated impa rrnent losses,
.ll""v'
(c) Deoreciationr
Depreclation has been provided on the Stlaight Line Method (sLM) as per rates specified n schedure , tothe
Companies Act,2013 in respect ofthe Flxed Assets ofthe Company.

3 RElqEtq!4!!90!tlqtL
a) sle of software
The Revenues frgm to be recognized based on coftract terms with the passin8 oftiles of
is
b) Revenue s recognlzed from the provsion of Services when the services are completed and accepted bvthe

O !]l'JiJill"a looo*, n o the poftion or the Revenue yet to u" ,ecocn,sea * "i*,"
,"po.tne p",oJin
cedain .ases where revenue is deferred for the future services bil ed in advance and the residua revenues 3re
recognized as revenue intheyearlnwhichthedeiveryof5ervcesarecompletedardaccepted.

4 ]AXE5 ON INCOMEI
1a1 r* l*ome ror *re cu;ent period is detdrmined on the basis of taxab e income and tax creditt computed in
""
accordance with the provislons of the lncome Tax Act 1961. Deferred tax expense or beneflt is recognned on
tinrin8 dlfferences being the dfference between taxab e incomes and accounting income that orglnate in one
period and are capable of reversal in one or more subsequent periods. Deferred tax assets and iablllt es are
rneasured usingthe tax rates and tax awsthat have been enacted or substantivelY enacted bv the balance sheet

{o) D.ferred Ia{.sset nrespecrofu-aoso,bedoep'ecdt.o"d'dtrrryforwa'oo'^'.sare.ec.g_ir*o:ivi;r*

extent that there is vlrtual certainty that suffic ent taxab e income wll be avai able to rea ize these assets a I
oiher deferred tax assets are recognlzed only to the extent that there is reasonable ce.taintv that sufficient
IL,t!rp taxab e income wi I be avai able to realize these assets.

89889.!UI!EC95L
BorrowinE costs attributab e to the acquisition or construction of qualilying ?jssets are capltalized as pa.t of th
Lort ol \uLh aisqt3..A qurlfur'8 dsser A o_e t'at
_ecesa lv ra'.s a s-bsta-ri/6rrod o' riae lo Cet reaov fo it
,-re"ded-'e.di.idd,.*,.scosr:d-e(-dseoto,even-e {/
 I AVELLE NETWORKS PRIVATE TIMITED
(Res. Ofiice: 13153/2, 2fd F oor, 12th A Main,HAL 2nd Stage, Oom ur Main Road, lndira Nagar, Bangalore 560 038)
PROVISIONS, CONTINGENT I.IABITITIES AND CONTIN6ENT A55ETS
Provisions involving substantiaL degree of estimatlon if measurement are reco8nized when there
ob igation as a resllt of past events and it is probab e that there wil be an outflow of resources. Contingent
Liabillties are not recognized but are disclosed in the Notes to Accounts. Contingent Assets
recognized nor disclosed in the f nancial statements.

FORE!GN EXCHANGE TRANSACTIONS:

Forelgn curency transactions are initialy recorded at the exchange rate prevaiing on the date of the
transaction. Monetary items (Receivable, Payable etc,) denominated in foreigr currencles are restated bv
usine the closins exchange rate as at each baance sheet date and exchange variation arislng thereof is
recoenized in the Profit & Loss account as expense or income, as the case mav be. Exchan€e variauons arising
out offoreisn curency transactions settled in the same year are also .ecognized in the Profit & Loss account as
expense or income, as the case maY be except in cases where they are covered bv lorward foreign exchange
contracts in which cases these are translated at the contracted rates of exchange and the resultant gains/ osses
recognlzed in profit and loss statement overthe life ofthe contract.

IMPAIRMENTOF A5SETs:
An asset is veated as lmpaired when the carryinS cost ofthe assets exceeds its recoverable value. An impalrme
loss is charsed to Profit and Loss Account in the year in which an asset is identjfied as impaired. The impalrme
loss recognlzed in prior accounting periods is reversed ifthere has been a change in the estimate of recoverabl

B OTHER DISCLOSURES:
Backqround of the Companv:
ut ft" io.pr^v was incorporated on 30.01.2015 , vide c N; u722ooKA2o15PTc078612 with an objeci
carrying business of software Development and to undertake lT enabled servlces like Call Cenke Management,
Medical and egal transcription, Data processing, warehousinS and database management and designlng and
deaine Computer Software, and to import, export, sell, purchase or otherwise dea in Computer Software
packases and to carry on the business of dealing in computer Programmed desl6ns and to buv, se I or otherwl
deal in all types of softwares.
f)rhe co.prny it engaged in the business of bullding software Defined Networking platforms for enterp.ises,
de ivered as c oud sLbscription services, which thereby un'complicate, Protect and acce erate the networks oi
the Business Entities. The Companyt goal runs on a mode vlr. '5imple, Secure & Swift". The Companv is working
on an innovative product based on SDN that makes lt very easy for organDations to dep ov th'ir wide area
networks. The Company has developed a Software for Networking Platform as a product, namelv, xpediti
VeBion 2.0 durlns the yearto caterto the data storage business mode s.

, Preparalion 3 qlds+rs-efElslsdsele4e4!
(a) The Financial statements are disdosed as pel the Schedu e io the Companies Act,2013 and thls is the secon
year of financials ofthe Company.

(b) eaaltional inlormation pursuant to clause 5 Part llofschedu e lll tothe compa n ies Act,2o13 havebeen
furnished to the extent appiicable tothe company.
(c) The Company has also reclassifled/regrouped the previous year fl8ures in accordance with the requirements
applicable to the Currentyear data forthe purpose ofcomparison.

3 Earninss & Exoenditure in Foreien ExchanEe:

(a) Earnlnss in Foreisn Exchanee is:
Export of Software services lncome :Nil
Advance from Customers against software sewices _ Llability :Ni
(b) Expenditure in Foreisn Exchanse is:
Trave lins Expenses inc!rred ihrough TravelCard Rs 8,958
 LAVELLE NETWORKS PRIVATE IIMITED
(Reg. Offlce: f1163/2, 2nd Floor, 12th A Main,HAL 2.d stase, Donrlur Main Road, ndira Nagar, BanCa ore 560 038)

4 Balances wlth Sundry Debtors,5undry Credito6 and Loans and advances are subject to confirmation.

5 (onr'ngenr -iab l!v.s on 31.01.2018 sqs.\L

5 pisclorures reeardin! Related PartvIransactions las per A<countins Standard_181are as under:

1 OiRECTOR UNSECT]RED LOANS

2 OIRECTOR UNSECURED LOANS

{b} Nature and value ot th€ Transaction: Director s Rernuneration

1 DTRECIOR REI\4t]NERATION 13,01,122

2 DIRECTOB 15,65,623

(c) Name and des.ription : M/s LAVEILE lNC., An Associate Foreitn Comlany holdinC 31 34% in EquitY Capital
(i)Natureand Va ue ofth€Transaction: Exp ort of Softwa re SeNices ncome :Rs.5,71,978
(ii)Nature and Value ofthe Transaction:Advance agalnst Software seruice Supp y LabiitY : NIL

7 Detaih Deferred Tax Asset /tiabilitv:

(a)NETDTLon accountofDeprec ation _ 6,10,151
(b) DTA on account of caried forward 7,26,7s,443
unutilised Losses available ulder ncome
Closing Balance NET DTA 1,24,65,292

E Disclosureunder=MicIo.5
The Company has initiated the process of ldentifying those €nterprises supplYlng goods and seruices, which
qualifo under the definltion Micro, 5ma I and Medium enterprises Deve opment Act 2006. The amount due to
Micro and Sma I enterprises has not been determined to disc ose the same as part of the trade pav:b es'
Further, there are no lnteren payables/ interest accrued but not paid/ interest clalnrs on account ofthe reffered
enterprises by the Company during the year.
As per our Report of even date
For MURALI & VENKAT For IAVEILE NETWORKS PRIVATE LlMITED.,
Chartered Accountants
'
o r L a v e e \ e rr'N gPiy4! 4n{re 6q66opqr1l*e9 L r m:re
' SHYAMAL KUMAR MhbLaVa KARTHIL
' Director Director
Membe6hlp Number: 028348
Director Director
F rm s ReElstratlon No.0021625

Bangalore, 21st September 2018