Notes to Accounts of Lee & Nee Softwares (Exports) Ltd.

Mar 31, 2024

(D) Terms / Rights attached to Equity Shares

a) The Company has only one class of Equity Shares having par value of Rs 10 each. Each share holder is eligible for one vote per share held.

b) In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts, if any. The distribution will be in proportion to the number of equity shares held by the shareholders.

28. Financial Risk Management

The Company''s operational activities expose to various financial risks i.e. market risk, credit risk and risk of liquidity. The Company realizes that risks are inherent and integral aspect of any business. The primary focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. This note explains the sources of the risk which the entity is exposed and how the entity manages the risk and the related impact on the financial statements.

(a) Market Risk

Market Risk is the risk of potential adverse change in the Company''s income and the value of the net worth arising from the movement in foreign exchange rates, interest rates or other market prices.The Company recognises that the effective management of market risk is essential to the maintenance of stable earnings and preservation of shareholder value. The objective of market risk management to manage and control market risk within acceptable parameters, while optimising the overall returns.

(b) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the long-term debt obligations with floating interest rates.

The Company manages its interest rate risk by having a balanced portfolio of borrowings and equity.

(c) Price Risks

Price risk is the risks that the fair value of a financial instrument will fluctuate due to changes in the market traded price. It arises from the financial assets such as investment in equity instruments such as bond , mutual funds etc. The Company is exposed to price risk mainly from investments carried at FVOCI whcih are valued using quoted prices in active markets . A sensitivity analysis demonstrating the impact on change in the market prices of these instruments from the prices existing as at reporting date is given below:-

Credit risk is the risk that a counterparty fails to discharge its obligation to the Company. The Company''s exposure to the credit risk is influenced mainly by cash and cash equivalents , trade receivables and financial assets measured at cost. The Company continously monitors defaults of customers and their counterparties and incorporates this information into credit risk controls. Credit risk related to cash and cash equivalents and bank deposits is managed by only accepting highly rated banks and diversifying bank deposits. Other financial assets measured at amortised cost excluding deposits of rent. Credit risk related to these other financial assets is managed by monitoring the recoverability of such amounts continously, while at the same time internal control system in place to ensure the amounts are within the defined limits.

Assets are written off when there is no reasonable expectation of recovery, such as debtor declaring bankruptcy or litigation decided against the Company. The Company continues to engage with parties whose balances are written off and attempts to enforce repayment. Recoveries made are recognised in Statement of Profit and Loss.

(i) Trade Receivables:-

The Company establishes an allowance for impairment that represents its estimates of incurred losses in respect of trade receivables . The allowance account in respect of trade and other receivables is used to record impairment losses unless the Company is satisfied that no recovery of the amount owing is possible. At that point, the financial asset is considered irrecoverables and the amount charged to the allowance account is wriiten off against the carrying amount of the impaired financial asset.

As the Company does not hold any collateral , the maximum expense to credit risk for each class of financial instrument is the carrying amount of that class of financial instrument presented on the statement of financial position. Impairment of trade receivables is based on expected credit loss model ( simplistic approach) depending upon the historical date, present financial conditions of customers and anticipated regulatory changes. Company does not hold any collateral in respect of such receivables

(ii) Financial Instruments and Cash Deposits:-

Credit risk related to cash and cash equivalents and bank deposits is managed by only accepting highly rated banks and diversifying bank deposits. Other financial assets measured at cost excluding deposits on rent. Credit risk related to these other financial assets is managed by monitoring the recoverability of such amounts continuously, while at the same time internal control system in place ensure amounts are within specified limits.

(iii) Credit risk exposure:-

This risk is common to all investors who invest in bonds and debt instruments and it refers to a situation where a particular bond/debenture issuer is unable to make the expected principal payment interest rate payment, or both. Similarly, a lender bears the risk that the borrower may default in the payment of contractual interest or principal on its debt obligation, or both. The entity continuously monitors defaults of the customers and other counterparties and incorporates this information into its credit risk control.

Liquidity risk is the risk that the Company will face in meeting its obligation associated with its financial liabilities. The Company''s approach to managing liquidity is to ensure that it will have sufficient funds to meet its liabilities when due without incurring unacceptable losses.

The Company maintained a cautious liquidity strategy , with positive cash balance through out the years ended 31 March 2024 and 31 March 2023. Cash flow from operating activities provides funds to service the financial liabilities on a day-to day basis. The Company regularly monitors the rolling forecasts to ensure it has sufficient cash on an going basis to meet operational requirements . Any short term surlpus cash generated over and above the amount required for working capital management and other operational requirements, is retained as cash and cash equivalents (to the extent required) and any excess is invested in interest bearing term deposits and other highly marketable instruments with appropriate maturities to optimise the returns on the investments while ensuring the sufficient liquidity to meet its liabilities.

(f) Capital Management

For the purpose of the Company''s capital management , capital includes issued equity share capital, share preimum and all other equity reserves attributable to equity share holders of the Company. The primary objective of the capital management is to maximise shareholder value''s.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial convenants. To maintain or adjust the capital structure , the Company may adjust the dividend payment to shareholders , return on capital to shareholders or issue of new shares.

29. Segment Reporting

As per the requirments of IND AS-108, " Segment Reporting" , no disclosures are required to be made since the Company activities consists of a single business segment i.e. Information & Technology.

30. Corporate Social Responsibility is not applicable to the Company.

c) Fair value Hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are recognised and measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used, in determining the fair value , the Company has classified its financial instruments into three levels prescribed under the accounting standard . An explanation of each level follows underneath:

Level 1:- Quoted prices (unadjusted) in active markets for identical assets and liabilities

Level 2:- Inputs other than quoted prices included in Level 1 that are observable for the asset or liability , either directly or indirectly

Level 3:- Inputs for assets or liabilities that are not associated on observable market date (unobservable input).

(ii) The following methods and assumptions were used to estimate the fair value:-

(a) Long term fixed rates receivables/ borrowings are evaluated by the Company based on the parameters such as interest rates and credit worthiness of the customers and the risk characteristic of the financed project. Based on the evaluations , allowances are taken into account for the expected losses of these receivables.

(b) The fair value of the loans from banks and financial liabilities as well as other non-current financial liabilities is estimated by discounting future cash flows using the rates currently available for debt on similar terms , credit risk and remaining maturities. Their valuation requires managment to use observable inputs in the model , management regularly assessses a range of reasonably possible for those significant unobservable inputs and determines the imapct on the total fair value.

The Sensitivity analysis above have been determined based on reasonably possible changes of the respective assumption occurring at the end of the reporting period & may not be representative of the actual change. It is based on a change in the key assumption while holding all other assumption constant. when calculating the sensitivity to the assumption, the method (Projected Unit Credit Method) used to calculate the liability recognised in the balance sheet has been applied. The methods & types of assumptions used in preparing the sensitivity analysis did not change compared with the previous period.

34. Other Additional Regulatory Information as per Schedule III

(a) Disclosure in relation to undisclosed income : The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the period ending 31 March, 2024 and also for the period ending 31 March, 2023 in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

(b) Relationship with Struck off Companies : The Company do not have any transactions with Company''s struck off during the period ending 31 March, 2024 and also for the period ending 31 March, 2023.

(c) Details of Benami Property held : The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company during the period ending 31 March, 2024 and also for the period ending 31 March, 2023 for holding any Benami property.

(d) Registration of charges or satisfaction with Registrar of Companies (ROC) : The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period, during the period ending 31 March, 2024 and also for the period ending 31 March, 2023.

(e) Details of Crypto Currency or Virtual Currency : The Company have not traded or invested in Crypto currency or Virtual Currency during the period ending 31 March, 2024 and also for the period ending 31 March, 2023.

(f) Utilisation of Borrowed Fund & Share Premium :

I. The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall: (a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or (b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

II. The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall: (a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or (b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

35. Figures of the year are regrouped / rearranged in order to confirm with current year classifications.

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Mar 31, 2023

f) Provisions, contingent liabilities and contingent assets:-Provisions

Provisions are recognised when there is a present obligation (legal or constructive) as a result of a past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. The expense relating to provision is presented in the statement of profit and loss. Provisions are reviewed at each balance sheet date.

Contingent Liabilities

A contingent liability is a possible obligation that arises from the past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity or a present obligation that is not recognised because it is probable that an outflow resources will be required to settle the obligation or it cannot be measured with sufficient reliability. The Company does not recognise a contingent liability but discloses its existence in the financial statements.

Contingent Assets

Contingent Assets are neither recognised nor disclosed. However, when realisation of the income is virtually certain, related asset is recognised.

Commitments

Commitments include the amount of the purchase order (net of advances) issued to the parties for completion of assets. Commitments are reviewed at each reporting period.

g) Revenue Recognition

The Company derives revenue primarily from Information Technology Services and Solutions. Revenue is recognised when company transfers control over a product or a service to a customer.

Time and Material Contract

It is recognised based on time /effort spent and billed to clients Maintenance Contract

It is recognised on a pro-data basis over the period when such services is rendered Fixed Price Contracts

Revenues from fixed price contract are recognised using the "percentage of completion" method. Percentage of completion is determined on project costs incurred to date as percentage of total estimated project costs required to complete the milestone wise project. If the Company does not have a sufficient basis to measure the progress of completion or to estimate the total contract revenues and costs, revenue is recognised only to extent of contract cost incurred for the completion milestone of the contract.

Sale of software products and licences

Revenue from maintenance contracts is recognised on a pro-rata basis over the period which service is rendered. Interest Income

Interest Income is recorded using Effective Interest Rate (EIR) for all the instruments measured at amortised cost. EIR

is the rate that exactly discounts the estimated future cash payments or receipts over the expected life of the financial instrument or a shorter period, where appropriate, to the gross carrying amount of the financial assets or to the amortised cost of financial liability.

Dividend Income

Dividend Income is recognised when right to receive is established.

h) Employee Benefits Expense

1. Short Term Employee Benefits

Short Term Employee Benefits are recognized as an expense at the undiscounted amount in the statement of profit and loss for the year in which related services are rendered.

2. Defined Contribution Obligations:-

Gratuity (Un-funded): - The cost is determined using the projected unit credit method with the actuarial valuation being carried at each balance sheet date by independent actuary. The present value of the defined benefit obligation denominated in INR is determined by discounting the estimated future cash outflows by reference to market yields at the end of the reporting period on government bonds that have terms approximating to the terms of related obligation.

The net interest cost is calculated by applying the discount rate to the balance sheet of the defined benefit obligation. This cost is calculated in employee benefit expense in the Statement of Profit and Loss.

Remeasurement gains or losses arising from experience adjustment, demographic adjustments and changes in actuarial assumptions are recognised in the period, in which they occur, directly in Other Comprehensive Income. They are included in retained earnings in the Statement of Changes in Equity and in the Balance Sheet Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognised immediately in Profit or Loss as past service cost.

i) Earnings Per Share:-

Basic earnings per share is calculated by dividing the net Profit or Loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share, the net Profit or Loss for the year attributable to the equity shareholders and weighted average number of share outstanding if any are adjusted for the effects of all dilutive potential equity shares.

j) Financial Instruments:-

A financial instrument is any contract that gives rise to financial asset of one entity and a financial liability or equity instrument of another equity.

Financial Assets

Initial Recognition and Measurement

All financial assets are recognised initially at fair value plus, in the case of financial assets not recorded at fair value through value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset. Trade Receivables are initially measured at the transaction price. Regular way of purchase and sale of financial assets are accounted for at trade date.

Subsequent Measurement

For the purposes of subsequent measurement, financial assets are classified in three categories.

• Amortised Cost

• Fair Value through Other Comprehensive Income (FVTOCI)

• Fair Value through Profit or loss (FVTPL)

Financial assets are not reclassified subsequent to their initial recognition, except if and in the period the Company changes its business model for managing financial assets.

Measured at Amortised Cost: A financial asset is measured at amortised cost if it is held within a business model whose objective is achieved by both collecting contractual cash flowsand the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortized cost using the effective interest rate (EIR) method.

Measured at FVTOCI: A financial asset is measured at FVTOCI if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling the financial assetsand the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

Financial assets included within the FVTOCI category are measured initially as well at each reporting date at fair value. Fair value measurement is recognised in Other Comprehensive Income.

Measured at FVTPL: A financial asset which is not classified in any of the above categories are measured at FVTPL. Financial assets included within the FVTPL category are measured at fair value with all changes recognised in the statement of profit and loss.

De-recognition

The Company derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and the transfer qualifies for de-recognition under Ind AS 109.

Impairment of financial assets

In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for the measurement and recognition of impairment loss for financial assets.

ECL is the weighted average of the difference between all the contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the Company expects to receive, discounted at the original effective interest rate, with the respective risks of default occurring as the weights. When estimating the cash flows, the Company is required to consider:

-All contractual terms of the financial assets (including prepayment and extension) over the expected life of the assets -Cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms. Trade Receivables

In respect of trade receivables, the Company applies the simplified approach of Ind AS 109, which requires measurement of loss allowance at an amount equal to lifetime expected credit losses. Lifetime expected credit losses that result from all possible default events over the expected life of a financial instrument.

Lifetime ECL are the expected credit losses resulting from all possible default events over the expected life of a financial asset. 12 month ECL area portion of the lifetime ECL which result from default events that are possible with 12 months from the reporting date, ECL are measured in a manner that they reflect unbiased and probability weighted amounts determined by a range of outcomes, taking into account the time value of money and other reasonable information available as a result of past events, current conditions and forecast of future economic conditions.

Financial Assets

In respect of other financial assets, the Company assesses if the credit risk on those financial assets has increased significantly since initial recognition. If the credit risk has not increased significantly since initial recognition, the Company measures the loss allowance at an amount equal to 12- month expected credit losses, else at an amount equal to the lifetime expected credit losses.

While making the assessment, the Company uses the change in the risk of a default occurring over the expected life of the financial asset. To make the assessment, Company compares the risk of a default occurring on the financial asset

as at the balance sheet date with the risk of a default occurring on the financial asset as at the date of initial recognition and considers reasonable and supportable information, that is available without undue cost or effort that is indicative of significant increases in credit risk since initial recognition. The Company assumes that the credit risk on a financial asset has not increased significantly since initial recognition if the financial asset is determined to have low credit risk at the balance sheet date.

Financial Liabilities

Initial Recognition and Measurement

Financial liabilities are at initially recognised at fair value plus any transaction cost that are attributable to the acquisition of the financial liabilities except financial liabilities at fair value through profit or loss which are initially measured at fair value.

Subsequent Measurement:

For the purpose of subsequent measurement, financial liabilities are classified in following categories: -

• Fair Value through Profit or loss (FVTPL)

• Amortised Cost

Measured at FVTPL: A financial liability is classified as at FVTPL. It is classified as held for trading or it is derivative or it is designated as such on initial recognition. Financial liabilities as at FVTPL are measured at fair value and net gains and losses, including any interest expense is recognised in profit and loss.

Measured at Amortised: Other financial liabilities are subsequently measured at amortised cost using the effective interest rate method.

Derecognition

The Company derecognizes a financial liability (or a part of financial liability) only when the obligation specified in the contract discharged or cancelled or expires.

Offsetting financial instruments

Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously.

k) Impairment of non- financial assets:-

At the end of each reporting period, the Company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash generating unit to which the asset belongs.

Where a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to the individual cash-generating units, or otherwise they are allocated to the smallest group of cash generating units for which a reasonable and consistent allocation basis can be identified.

Recoverable amount is the higher of fair value less cost to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using pre-tax discount that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash generating unit) is estimated less that its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in the Statement of Profit and Loss, unless the relevant asset at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Where an impairment loss subsequently reverses, the carrying amount of the asset (or a cash generating unit) is increased to the revised estimate of its recoverable amount , but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss has been recognised immediately in the Statement of Profit and Loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

l) Fair Valuer-

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Company takes in to account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and or disclosure purposes in the financial statements is determined on such basis.

In addition, for financial reporting purposes, fair value measurements are categorized into Level 1, 2, or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurements in its entirety, which are described as follows:

• Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;

• Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly;

• Level 3 inputs are unobservable inputs for the asset or liability.

m) Event after reporting date:-

Where the events occurring after the Balance Sheet date provide evidence of conditions that existed at the end of the reporting period, the impact of such events adjusted within the financial statements. Otherwise, events after the Balance Sheet date of material size or nature are only disclosed.

n) Investment in subsidiaries: -

Investment in subsidiaries are carried at cost less accumulated impairment losses, if any. Where an indication of impairment exists, the carrying amount of the investment is assessed and written down immediately to its recoverable amount. The recoverable amount is the higher of an asset''s fair value less cost of disposal and value in use. On disposal of the investments, the difference between net disposal proceeds and the carrying amount is recognized in the Statement of Profit and Loss.

o) Segment Reporting:-

Operating Segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker (CODM) of the Company. The CODM is responsible for allocating resources and assessing performance of the operating segments of the Company.

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. As per requirement of Ind AS 108 "Segment Reporting" no disclosures are required to be made since the Company''s activities consists of a single business segment.

24. Financial Risk Management

The Company''s operational activities expose to various financial risks i.e. market risk, credit risk and risk of liquidity. The Company realizes that risks are inherent and integral aspect of any business. The primary focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. This note explains the sources of the risk which the entity is exposed and how the entity manages the risk and the related impact on the financial statements.

(a) Market Risk

Market Risk is the risk of potential adverse change in the Company''s income and the value of the net worth arising from the movement in foreign exchange rates, interest rates or other market prices. The Company recognises that the effective management of market risk is essential to the maintenance of stable earnings and preservation of shareholder value. The objective of market risk management to manage and control market risk within acceptable parameters, while optimising the overall returns.

(b) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the long-term debt obligations with floating interest rates.

The Company manages its interest rate risk by having a balanced portfolio of borrowings and equity.

( c ) Price Risks

Price risk is the risks that the fair value of a financial instrument will fluctuate due to changes in the market traded price. It arises from the financial assets such as investment in equity instruments such as bond , mutual funds etc. The Company is exposed to price risk mainly from investments carried at FVOCI which are valued using quoted prices in active markets . A sensitivity analysis demonstrating the impact on change in the market prices of these instruments from the prices existing as at reporting date is given below:-

Credit risk is the risk that a counterparty fails to discharge its obligation to the Company. The Company''s exposure to the credit risk is influenced mainly by cash and cash equivalents , trade receivables and financial assets measured at cost. The Company continously monitors defaults of customers and their counterparties and incorporates this information into credit risk controls. Credit risk related to cash and cash equivalents and bank deposits is managed by only accepting highly rated banks and diversifying bank deposits. Other financial assets measured at amortised cost excluding deposits of rent. Credit risk related to these other financial assets is managed by monitoring the recoverability of such amounts continously, while at the same time internal control system in place to ensure the amounts are within the defined limits.

Assets are written off when there is no reasonable expectation of recovery, such as debtor declaring bankruptcy or litigation decided against the Company. The Company continues to engage with parties whose balances are written off and attempts to enforce repayment. Recoveries made are recognised in Statement of Profit and Loss.

(i) Trade Receivables:-

The Company establishes an allowance for impairment that represents its estimates of incurred losses in respect of trade receivables . The allowance account in respect of trade and other receivables is used to record impairment losses unless the Company is satisfied that no recovery of the amount owing is possible. At that point, the financial asset is considered irrecoverables and the amount charged to the allowance account is written off against the carrying amount of the impaired financial asset.

As the Company does not hold any collateral , the maximum expense to credit risk for each class of financial instrument is the carrying amount of that class of financial instrument presented on the statement of financial position. Impairment of trade receivables is based on expected credit loss model ( simplistic approach) depending upon the historical date, present financial conditions of customers and anticipated regulatory changes. Company does not hold any collateral in respect of such receivables

(ii) Financial Instruments and Cash Deposits:-

Credit risk related to cash and cash equivalents and bank deposits is managed by only accepting highly rated banks and diversifying bank deposits. Other financial assets measured at cost excluding deposits on rent. Credit risk related to these other financial assets is managed by monitoring the recoverability of such amounts continuously, while at the same time internal control system in place ensure amounts are within specified limits.

(iii) Credit risk exposure

This risk is common to all investors who invest in bonds and debt instruments and it refers to a situation where a particular bond/debenture issuer is unable to make the expected principal payment interest rate payment, or both. Similarly, a lender bears the risk that the borrower may default in the payment of contractual interest or principal on its debt obligation, or both. The entity continuously monitors defaults of the customers and other counterparties and incorporates this information into its credit risk control.

Liquidity risk is the risk that the company will face in meeting its obligation associated with its financial liabilities. The Company''s approach to managing liquidity is to ensure that it will have sufficient funds to meet its liabilities when due without incurring unacceptable losses.

The Company maintained a cautious liquidity strategy , with positive cash balance through out the years ended 31 March 2023 and 31 March 2022. Cash flow from operating activities provides funds to service the financial liabilities on a day-to day basis. The Company regularly monitors the rolling forecasts to ensure it has sufficient cash on an going basis to meet operational requirements . Any short term surplus cash generated over and above the amount required for working capital management and other operational requirements, is retained as cash and cash equivalents (to the extent required) and any excess is invested in interest bearing term deposits and other highly marketable instruments with appropriate maturities to optimise the returns on the investments while ensuring the sufficient liquidity to meet it liabilities.

(f) Capital Management

For the purpose of the Company''s capital management , capital includes issued equity share capital, share premium and all other equity reserves attributable to equity share holders of the company. The primary objective of the capital management is to maximise shareholder value''s.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial convenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders , return on capital to shareholders or issue of new shares.

25. Segment Reporting

As per the requirements of IND AS-108, " Segment Reporting" , no disclosures are required to be made since the Company activities consists of a single business segment i.e. Information & Technology.

26. Corporate Social Responsibility is not applicable to the Company.

c) Fair value Hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are recognised and measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used, in determining the fair value, the Company has classified its financial instruments into three levels prescribed under the accounting standard . An explanation of each level follows underneath:

Level 1:- Quoted prices (unadjusted) in active markets for identical assets and liabilities Level 2:- Inputs other than quoted prices included in Level I that are observable for the asset or liability , either directly or indirectly

Level 3:- Inputs for assets or liabilities that are not associated on observable market date (unobservable input).

(ii) The following methods and assumptions were used to estimate the fair value:-

(a) Long term fixed rates receivables/ borrowings are evaluated by the Company based on the parameters such as interest rates and credit worthiness of the customers and the risk characteristic of the financed project. Based on the evaluations , allowances are taken into account for the expected losses of these receivables.

(b) The fair value of the loans from banks and financial liabilities as well as other non-current financial liabilities is estimated by discounting future cash flows using the rates currently available for debt on similar terms , credit risk and remaining maturities. Their valuation requires managment to use observable inputs in the model , management regularly assesses a range of reasonably possible for those significant unobservable inputs and determines the impact on the total fair value.

30 Other Additional Regulatory Information as per Schedule III

(a) Disclosure in relation to undisclosed income : The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the period ending 31st March, 2023 and also for the period ending 31st March, 2022 in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

(b) Relationship with Struck off Companies : The Company do not have any transactions with company''s struck off during the period ending 31st March, 2023 and also for the period ending 31st March, 2022.

(c) Details of Benami Property held : The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company during the period ending 31st March, 2023 and also for the period ending 31st March, 2022 for holding any Benami property.

(d) Registration of charges or satisfaction with Registrar of Companies (ROC) : The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period, during the period ending 31st March, 2023 and also for the period ending 31st March, 2022.

(e) Details of Crypto Currency or Virtual Currency : The Company have not traded or invested in Crypto currency or Virtual Currency during the period ending 31st March, 2023 and also for the period ending 31st March, 2022.

(f) Utilisation of Borrowed Fund & Share Premium :

I. The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall: (a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or (b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

II. The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall: (a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or (b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

31 Financials have been prepared after incorporating adjustments for regrouped/ rearranged retrospectively , where necessary, to conform to the current year''s presentation.

As per our report of even date attached

For and on behalf of the Board

For N H Agrawal & Associates LEE & NEE SOFTWARES (EXPORTS) LTD

Chartered Accountants

Firm''s Registration Number: 0327511E Ajay Kumar Agarwal Arpita Gupta

Director Director

Nitin Hukumchand Agrawal (DIN : 01265141) (DIN : 02839878)

Partner

Membership Number: 129179 Vikash Singh Pritika Gupta

Chief Financial Officer Company Secretary

Place: Kolkata

Date : 26th May, 2023

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Mar 31, 2015

1. Terms / Rights attached to Equity Shares:

a) The Company has only one class of Equity Shares having par value of Rs 10 each. Each share holder is eligible for one vote per share held.

b) In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts, if any. The distribution will be in proportion to the number of equity shares held by the shareholders.

2. Gratuity as per AS-15 has not been provided; it will be accounted for in the year of payment since no material obligation has been recognized.

3.amount outstanding due to Micro and Small Enterprises as per MSMED Act, 2006.

4. There is decline in carrying amounts of the long-term investments in shares of certain Ltd Companies. The above investments being strategic in nature and diminution in the value of said investments being temporary in nature, no provision their against is required in the accounts.

5. The Company's business activity falls within a single primary business segment i.e. Software business and therefore, the disclosure requirement of Accounting Standard -17 "Segment Reporting" is not applicable.

6. In the opinion of the Board and to the best of their knowledge and belief, Trade Receivables, Loans and Advances have a value of realization in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet and are subject to confirmations by the respective parties.

7. Current Tax and Deferred Tax Liability has not been recognized due to brought forward losses.

Minimum Alternate Tax (MAT) under the provisions of the Income Tax Act, 1961 is recognized as current tax in the statement of profit & loss. The credit under the Act in respect of MAT paid is recognized as an asset only when and to the extent there is convincing evidence that the company will pay normal income tax during the period for which MAT credit can be carried forward for set-off against the normal tax liability.

8. Related Parties disclosures

Name of the related parties and related party relationships

i) Subsidiary

Lensel Web Services Pvt. Ltd. Wholly Owned Subsidiary

Rituraj Shares Broking Pvt. Ltd. Wholly Owned Subsidiary

ii) Related parties with whom transactions has taken place during the year

Relatives of Key Management Personnel / Enterprises owned or significantly influenced by Key Management Personnel or their relatives

Leena Gupta (Daughter of Promoter Director)

S. M. Gupta & Company

Leena Consultancy

Rituraj Shares & Securities Ltd.

Rituraj Shares & Securities

9. The SAP Partnership fees paid by the company does not come under the definition of Intangible Assets defined under AS-26. So, the same is considered as deferred revenue expenditure and amortised over a period of five years as per Section 35D of the Income Tax Act 1961.

10. Comparative Figures

Figures of the previous year have been regrouped/ reclassified/ rearranged wherever necessary to correspond with those of the current year's classification/ disclosures.

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Mar 31, 2014

1. Terms Rights attached to Equity Shares:

a) The Company has only one class of Equity Shares having par value of Rs 10 each Each share holder is eligible for one vote per share held

b) In Ihe event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts, if any The distribution will be in proportion lo the number of equity shares held by the shareholders

2 The Company, out of the 55774000 equity shares of Rs 10 each, during the financial year 1990-91, 800000 equity shares had called up for Rs 0 50 paise each aggregating lo Rs 400000 only allotted for consideration other than cash

3. Pursuant to order of the Honorable Calcutta High Court, during the financial year 1999-2000, 5000000 equity shares of Rs 10 each on merger of Lensel Finance Ltd

4. 16704000 equity shares of Rs 10 each fully paid upto three amalgamating companies during the financial year 2000-01

5. 29080000 equity shares of Rs 10 each fully paid upto five amalgamating companies during the financial year 2007-08

6. Contingent liabilities not provided for:

Demand for custom duly on behalf of audit objection amounting to Rs 69,62,065A(earlier years) is not acknowledge as debts being disputed.

7 Gratuity as per AS-15 has not been provided; it will be accounted for in the year of payment since no obligation had been recognized

8 The company has no outstanding dues as on 31 03 2014 payable to small-scale units

9 There is decline In carrying amounts of the long-term investments in shares of certain Ltd Companies, However no provisions for the resultant amount of decline are made in Profit S Loss a/c as same is not ascertainable.

10 As the Company is dealing only in software business therefore the segment reporting as per AS 17 is not required

11 Minimum AHwmste lax (MATJ 3mlor the provisloiia Tax Act 1961 is recongniszed moogmied as carrcni that in or profit fixed nas Pie credit urtienheAd In teipirt ni pu.xi 1 in-r/gw-cn as ai1 asset nnly wien and Id Iheexluni More la :dii. .iung rv.donce lliel the crmTOPy will :ay iv.tiuiI inner™ |3X during ihe period tor which VAT credit can co ceded torwa-d for Ket-OH adHinal Iho normal ta liabilities.

12 Earning per share(EPS)

The Earning per equity share computed as per the requirements of Accounting Standard-20 "Earnings per Share", is as under

13, Rested Parties diictosiPias as per AS 18 which came into effect in respect of accounting period commencing on or after 01.Q4.2DU2

It Subsidiary and Associates

Lensel Web Services Pvl Ltd Wholly Owned Subsidiary

Riluraj Shares Broking Pvt Ltd Wholly Owned Subsidiary

Haresh Collections Pvt Ltd Associate

Name of the Key Management Personnel:

ShriSM Gupta Promoter Director

Shri Ajay Agarwal Executive Director

Smt Arpila Gupta Non Executive Director

14 Parties related to the Key Management Personnel where they are interested as relative/partner/director in the firm/com panics etc.

S M Gupta & Company

Raj Kumari Agarwal, Mahesh Gupta, Neena Gupta, S M Gupta (HUE), Rituraj Shares & Securities Ltd., Raj Associates,

Rituraj Shares & Securities

15 The SAP Partnership fees paid by the company does not come under the definition of Intangible Assets defined under AS- 26 So, the same is considered as deferred revenue expenditure and amortised over a period of five years as per Section 35D of the Income Tax Act 1961

16 Comparative Figures

Figures of the previous year have been regrouped/ reclassified/ rearranged wherever necessary to correspond with those of the current year's classification/ disclosures

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Mar 31, 2013

1. Fixed Assets:

The Leasehold premises has been disposed off during the year on the expiry of the lease agreement. The liability of Lease rent has been written back in the books of accounts. And also the Flat under construction has been transferred to Advances due to the non-payment of the balance amount towards it.

2. Contingent liabilities not provided for:

Demand for custom duty on behalf of audit objection amounting to Rs. 69,62,085/-(earlier years) is not acknowledge as debts being disputed.

3. Gratuity as per AS-15 has not been provided; it will be accounted for in the year of payment since no obligation had been recognized.

4. The company has no outstanding dues as on 31.03.2013 payable to small-scale units.

5. There is decline in carrying amounts of the long-term investments in shares of certain Ltd Companies. However no provisions for the resultant amount of decline are made in Profit & Loss a/c as same is not ascertainable.

6. The Company has discontinued dealing in shares and now the Company is dealing only in software business therefore the segment reporting as per AS 17 is not required.

7. In the opinion of the Board of Directors, Trade Receivables, Loans and Advances have a value of realization in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet and are subject to confirmations by the respective parties.

8. Current Tax and Deferred Tax Liability has not been recognized due to brought forward losses.

Minimum Alternate Tax (MAT) under the provisions of the Income Tax Act, 1961 is recognized as current tax in the statement of profit & loss. The credit under the Act in respect of MAT paid is recognized as an asset only when and to the extent there is convincing evidence that the company will pay normal income tax during the period for which MAT credit can be carried forward for set- off against the normal tax liability.

9. Earning Per Share (EPS)

The earning per equity share computed as per the requirements of Accounting Standard-20 "Earnings per Share", is as under:

10. Related Parties disclosures as per AS 18 which came into effect in respect of accounting period commencing on or after 01.04.2002

i) Name of the Key Management Personnel:

Shri S.M. Gupta Promoter Director

Shri Aj ay Agarwal Executive Director

Smt Arpita Gupta Independent Director

ii) Parties related to the Key Management Personnel where they are interested as relative/partner/director in the firm/companies etc.

S.M Gupta & Company

Raj Kumari Agarwal, Mahesh Gupta

Neena Gupta, S.M. Gupta (HUF), Rituraj Shares & Securities Ltd, Lensel

Web Services Pvt. Ltd., Rituraj Share Broking Pvt. Ltd., Haresh Collections Pvt. Ltd,

Raj Associates

11. The SAP Partnership fees paid by the company does not come under the definition of Intangible Assets defined under AS-26. So, the same is considered as deferred revenue expenditure and amortised over a period of five years as per Section 35D of the Income Tax Act 1961.

12. Comparative Figures

Figures of the previous year have been regrouped/ reclassified/ rearranged wherever necessary to correspond with those of the current year''s classification/ disclosure.

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Mar 31, 2012

1. Contingent liabilities not provided for:

Demand for custom duty on behalf of audit objection amounting to Rs. 69,62,085/-(earlier years) is not acknowledge as debts being disputed.

2. Provision for gratuity will be accounted for in the year of payment since no obligation had been recognized.

3. The company has no outstanding dues as on 31.03.2012 payable to small-scale units.

4. There is decline in carrying amounts of the long-term investments in shares of certain Ltd Companies. However no provisions for the resultant amount of decline are made in Profit & Loss a/c as same is not ascertainable.

5. In the opinion of the Board of Directors, Trade Receivables, Loans and Advances have a value of realization in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet and are subject to confirmations by the respective parties.

6. Current Tax and Deferred Tax Liability has not been recognized due to brought forward losses.

Minimum Alternate Tax (MAT) under the provisions of the Income Tax Act, 1961 is recognized as current tax in the statement of profit & loss. The credit under the Act in respect of MAT paid is recognized as an asset only when and to the extent there is convincing evidence that the company will pay normal income tax during the period for which MAT credit can be carried forward for set-off against the normal tax liability.

7. Pursuant to AS-24, the Company has discontinued / closed the operations at Bhubneshwar unit, since the license period is over.

8. The SAP Partnership fees paid by the company dosen't come under the definition of Intangible Assets defined under AS-26. So, the same is considered as deferred revenue expenditure and amortised over a period of five years as per Section 35D of the Income Tax Act 1961.

9. Comparative Figures

On applicability of revised Schedule VI from current year, the Group has reclassified previous year figures to confirm to this year's classification. The adoption of revised Schedule VI does not impact recognition and measurement principles followed for preparation of the Financial Statements. However, it significantly impacts presentation and disclosures made in the financial statements, particularly presentation of balance sheet.

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Mar 31, 2011

1) Contingent Liabilities not provided for : Counter guarantee given to Indusind Bank Ltd. in respect of Bank Guarantee of Rs. 3,00,000/- issued by them in favour of Department of Telecommunication, Govt. of India.

2) Provision for Gratuity will be accounted for in the year of payment since no obligation had been recognised.

3) Demand for custom duty on behalf of Audit objection amounting to Rs. 69,62,085/- (earlier year) is not acknowledged as debts, being disputed.

4) The Company has no outstanding dues as on 31.03.2011 payable to small scale units.

5) There is decline in carrying amounts of the long term Investments in shares of certain limited companies. However no provision for the resultant amount of decline are made in profit & loss a/c as the same is not ascertainable.

6) In the opinion of the Board of Directors, Current Assets, Loans and Advances have a value of realisation in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet and are subject to confirmations by the respective parties.

7) Deferred Tax liability has not been recognised due to brought forward losses.

8) Figures of current year are not strictly comparable with the figures of previous year in Computer Software Business.

9) Related Parties Disclosures as per AS 18 which came into effect in respect of accounting period commencing on or after 01.04.2002.

i) Name of the Key Management Personnel :

Shri S. M. Gupta Promoter Director

Shri Ajay Agarwal Executive Director

Smt. Arpita Gupta Independent Director

ii) Parties Related to the Key Management Personnel where they are interested as relative/partner/director in the firms/companies etc.

S. M. Gupta & Company, Raj Kumari Agarwal

Mahesh Gupta, Neena Gupta

S. M. Gupta (H.U.F.), Rituraj Shares & Securities Ltd.

Lensel Web Services Pvt. Ltd., Rituraj Share Broking Pvt. Ltd.

10) BALANCE SHEET ABSTRACT AND COMPANY'S GENERAL BUSINESS PROFILE AS PER PART IV OF SCHEDULE VI TO THE COMPANIES ACT, 1956.

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Mar 31, 2010

1) Contingent Liabilities not provided for :

Counter guarantee given to Indusind Bank Ltd. in respect of Bank Guarantee of Rs. 6,00,000/- issued by them in favour of Department of Telecommunication, Govt, of India.

2) Provision for Gratuity will be accounted for in the year of payment since no obligation had been recognised.

3) Demand for custom duty on behalf of Audit objection amounting to Rs. 69,62,085/- (previous year) is not acknowledged as debts, being disputed.

4) The Company has no outstanding dues as on 31.03.2010 payable to small scale units.

5) There is decline in carrying amounts of the long term Investments in shares of certain limited companies. However no provision for the resultant amount of decline is made in profit & loss a/c as the same is not ascertainable.

6) As the Company is dealing only in software business at all its centers, the segment reporting as per AS 17 is not required.

7) In the opinion of Board of Directors, Current Assets, Loans and Advances have a value of realisation in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet and are subject to confirmations by the respective parties.

8) Deferred Tax liability has not been recognised due to brought forward losses.

9) Assets at Pune Branch amounting to Rs. 12,783.29/- does not have any realisable value being obsolete & Rourkela branch amountng to Rs. 53,525.16/- does not have any realizable value being obsolete.

10) Figures of current year are not strictly comparable with the figures of previous year in Computer Software Business.

11) The disclosures required under Accounting Standard 15 "Employees Benefits" notified in the Companies (Accounting Standards) Rules 2006, are given below :

Defined Contribution Plan

Contribution to Defined Contribution Plan, recognized are charged off for the year are as under :

Contribution to Provident Fund :

Employers Contribution to Provident Fund Rs. 20,436.00

12) Additional information pursuant to the provisions of paragraph 3 & 4 of part II of Schedule VI to the Companies Act. 1956

a) Licensed and installed Capacities

Under the new industrial policy no. specific licence or installed capacity is necessary for the products manufactured by the company.

13) Related Parties Disclosures as per AS 18 which came into effect in respect of accounting period commencing on or after 01.04.2002.

i) Name of the Key Management Personnel :

Shri S. M. Gupta Promoter Director

Shri Ajay Agarwal Executive Director

Shri Paresh Agarwal Independent Director (upto 24/10/2009)

Smt. Arpita Gupta Independent Director (From 24/10/2009)

ii) Parties Related to the Key Management Personnel where they are interested as relative/partner/director in the firms/companies etc.

S.M. Gupta & Company

Raj Kumari Agarwal

Mahesh Gupta

Neena Gupta

S. M.Gupta (H.U.F.)