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Lee & Nee Software (Exports) Ltd.

BSE: 517415 Sector: IT
NSE: N.A. ISIN Code: INE791B01014
BSE 00:00 | 20 Jul 1.99 -0.08
(-3.86%)
OPEN

1.97

HIGH

2.16

LOW

1.97

NSE 05:30 | 01 Jan Lee & Nee Software (Exports) Ltd
OPEN 1.97
PREVIOUS CLOSE 2.07
VOLUME 5731
52-Week high 6.24
52-Week low 1.91
P/E 99.50
Mkt Cap.(Rs cr) 11
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 1.97
CLOSE 2.07
VOLUME 5731
52-Week high 6.24
52-Week low 1.91
P/E 99.50
Mkt Cap.(Rs cr) 11
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Lee & Nee Software (Exports) Ltd. (LEENEESOFT) - Auditors Report

Company auditors report

To

The Members of M/s Lee & Nee Softwares (Exports) Ltd.

Report on the Standalone Financial Statements

We have audited the accompanying Standalone Financial Statements of M/s LEE & NEESOFTWARES (EXPORTS) LTD. which comprise the Balance Sheet as at 31st March2017 the Statement of Profit and Loss and the Cash Flow Statement for the year thenended and a summary of the significant accounting policies and other explanatoryinformation.

Management's Responsibility for the Standalone 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 the respect to the preparationof these Standalone Financial Statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theAccounting principles generally accepted in India including the Accounting Standardsspecified under section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these Standalone Financial Statementsbased on our audit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards required that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatements.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31stMarch 2017 and its profit and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. 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 Act we give in the Annexure A a statement on the matters specified in paragraphs 3and 4 of the said Order to the extent applicable.

2. As required by Section 143 (3) of the Act we report to the extent applicable that:

a. We have sought and obtained all the information and explanations which to the bestof our knowledge and belief 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 and the Cash Flow Statementdealt with by this Report are in agreement with the books of account.

d. In our opinion the aforesaid Standalone Financial Statements comply with theAccounting 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 31stMarch 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 from being appointed as a director in terms of Section164 (2) of the Act.

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. Our report expresses an unmodified opinion on the adequacyand operating effectiveness of the Company's internal financial controls over financialreporting.

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 read withCompanies (Audit and Auditors) amendment rules 2017 in our opinion and to the best ofour information and according to the explanations given to us:

i) The Company does not have any pending litigations which would impact its financialposition.

ii) There are no long term contracts including derivative contracts requiringprovision for material foreseeable losses under the applicable law or accountingstandards; and

iii) The Company did not have any amount which had fallen due and required to betransferred to the Investor Education and Protection Fund by the Company.

iv) The Company has provided requisite disclosure in its standalone financialstatements as to holdings as well as dealings in Specified Bank Notes during the periodfrom 8 November 2016 to 30th December 2016. Based on audit procedures andrelying on the management representation we report that the disclosures are in accordancewith books of account maintained by the Company. Refer Note 25 to the financialstatements.

For Jain Sonu and Associates
Chartered Accountants
Firm's Registration Number: 324386E
Sonu Jain
Place: Kolkata Partner
Date: 10th May 2017 Membership No.:060015

ANNEXURE A TO THE INDEPENDENT AUDITOR'S REPORT

(REFERRED TO IN PARAGRAPH 1 OF 'REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS' OFOUR REPORT OF EVEN DATE)

(i) a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

b) The fixed assets were physically verified during the year by the management inaccordance with a regular programme of verification which in our opinion provides forphysical verification of all the fixed assets at reasonable intervals. According to theinformation and explanations given to us no material discrepancies were noticed on suchverification.

c) The Company does not have any immovable property hence the provision is notapplicable to the Company.

(ii) The Company does not hold any inventory during the year hence Clause 3(ii) of theOrder is not applicable 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 CompaniesAct 2013. Accordingly the provisions of Clauses 3(iii) (a) and (b) of the Order are notapplicable to the Company.

(iv) In our opinion and according to the information and explanations given to us theCompany has not given loans guarantees security or made any investment which needs tocomply with the section 185 and 186 of the Companies Act 2013.

(v) According to the information and explanations given to us the Company has notaccepted any deposits during the year from the public. Hence Clause 3(v) of the Order isnot applicable to the Company.

(vi) The Central Government has not prescribed the maintenance of cost records underSection 148(1) of the Act for any of the services rendered by the Company.

(vii) a) According to the records of the Company the Company is regular in depositingwith appropriate authorities undisputed

statutory dues including Provident Fund Investor Education & Protection FundEmployees State Insurance Income Tax Wealth Tax Service Tax Custom Duty Excise DutyCess and other statutory dues to the extent applicable to it. According to information andexplanations given to us no undisputed amounts payable in respect of the Service TaxIncome Tax Sales Tax Wealth Tax Custom Duty Excise Duty and Cess were in arrears as at31st March 2017 for a period of more than six months from the date they becamepayable. b) According to information and explanation given to us there are no dues ofService Tax Income Tax Sales Tax Custom

Duty and Cess which has not been deposited on account of any dispute other thandisclosed in notes of accounts.

(viii) (viii) The Company has not taken any loan from financial institution or banks assuch question of default in repayment of dues to a financial institutions & banks doesnot arise.

(ix) The Company has not raised any money by way of initial public offer furtherpublic offer debt instruments or term loans during the year. Accordingly Clause 3(ix) ofthe Order is not applicable.

(x) According to the information and explanations given to us no fraud on or by theCompany has been noticed or reported during the course of our audit.

(xi) According to the information and explanation given to us and based on ourexamination of the records of the Company no managerial remuneration has been paid orprovided during the year. Accordingly Clause 3(xi) of the Order is not applicable.

(xii) The Company is not a Nidhi Company. Accordingly Clause 3(xii) of the Order isnot applicable.

(xiii) In our opinion and according to the information and explanation given to usthere are no contracts or arrangements with

related parties referred to in section 177 and 188 of the Companies Act 2013 duringthe year.

(xiv) Company has not made any preferential allotment or private placement of shares orfully or partly convertible debentures during the year. Accordingly Clause 3(xiv) of theOrder is not applicable.

(xv) In our opinion and according to the information and explanation given to usduring the year the Company has not entered into any non-cash transactions with itsdirectors or directors of its subsidiary or persons connected with them. AccordinglyClause 3 (xv) of the Order is not applicable.

(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For Jain Sonu and Associates
Chartered Accountants
Firm's Registration Number: 324386E
Sonu Jain
Place: Kolkata Partner
Date: 10th May 2017 Membership No.:060015

-

ANNEXURE B TO THE INDEPENDENT AUDITOR'S REPORT

(REFERRED TO IN PARAGRAPH 2(f) UNDER 'REPORT ON OTHER LEGAL AND REGULATORYREQUIREMENTS'

OF OUR REPORT OF EVEN DATE)

Report on the Internal Financial Controls over Financial Reporting under clause (i) ofSub-section 3 of section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of Lee &Nee Softwares (Exports) Ltd. as of March 31st 2017 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.

MANAGEMENT'S RESPONSIBILTY 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 controlsstated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India. 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 of itsassets the prevention and detection of frauds and errors the accuracy and completenessof the accounting records and the timely preparation of reliable financial informationas required under the Companies Act 2013.

AUDITOR'S RESPONSIBILTY

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 deemed to beprescribed under section 143(10) of the Companies Act 2013 to the extent applicable to anaudit of internal financial controls and both issued by the Institute of CharteredAccountants of India. Those standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate 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 control system over financial reporting and their operatingeffectiveness. Our audit of Internal Financial over financial reporting included obtainingan understanding of internal financial controls over financial reporting assessing therisk that a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal controls based on the assessed risk. The procedures selecteddepends on the auditor's judgment including the assessment of the risk of materialmisstatement of the 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 financial statements for external purposes in accordance with generallyaccepted accounting principles. A Company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the Company ; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the Company are being made only in accordance with authorizations ofmanagement and directors of the Company; (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of theCompany's assets that could have a material effect on the financial 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.

OPINION

In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 31st 2017 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 Jain Sonu and Associates
Chartered Accountants
Firm's Registration Number: 324386E
Sonu Jain
Place: Kolkata Partner
Date: 10th May 2017 Membership No.:060015