Lee & Nee Softwares (Exports) (BOM:517415) Beneish M-Score : -0.63 (As of May. 22, 2024)

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What is Lee & Nee Softwares (Exports) Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Warning Sign:

Beneish M-Score -0.63 higher than -1.78, which implies that the company might have manipulated its financial results.

The historical rank and industry rank for Lee & Nee Softwares (Exports)'s Beneish M-Score or its related term are showing as below:

BOM:517415' s Beneish M-Score Range Over the Past 10 Years
Min: -4.74 Med: -1.96 Max: 20.79
Current: -0.63

During the past 13 years, the highest Beneish M-Score of Lee & Nee Softwares (Exports) was 20.79. The lowest was -4.74. And the median was -1.96.

Lee & Nee Softwares (Exports) Beneish M-Score Historical Data

The historical data trend for Lee & Nee Softwares (Exports)'s Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Lee & Nee Softwares (Exports) Beneish M-Score Chart

Lee & Nee Softwares (Exports) Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Beneish M-Score

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20.79

-1.96

-1.17

-4.06

-0.63

Lee & Nee Softwares (Exports) Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Beneish M-Score	Get a 7-Day Free Trial															-	-0.63	-	-	-

Competitive Comparison of Lee & Nee Softwares (Exports)'s Beneish M-Score

For the Information Technology Services subindustry, Lee & Nee Softwares (Exports)'s Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Lee & Nee Softwares (Exports)'s Beneish M-Score Distribution in the Software Industry

For the Software industry and Technology sector, Lee & Nee Softwares (Exports)'s Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Lee & Nee Softwares (Exports)'s Beneish M-Score falls into.

Lee & Nee Softwares (Exports) Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Lee & Nee Softwares (Exports) for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 3.3015

0.528 * 0.6416

0.404 * 1.0111

0.892 * 1.1494

0.115 * 0.8727

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.9843

4.679 * 0.010555

0.327 * 1.2356

-0.63

This Year (Mar23) TTM:

Last Year (Mar22) TTM:

Total Receivables was ₹10.96 Mil.
Revenue was ₹67.31 Mil.
Gross Profit was ₹12.34 Mil.
Total Current Assets was ₹36.28 Mil.
Total Assets was ₹572.22 Mil.
Property, Plant and Equipment(Net PPE) was ₹1.38 Mil.
Depreciation, Depletion and Amortization(DDA) was ₹0.61 Mil.
Selling, General, & Admin. Expense(SGA) was ₹9.08 Mil.
Total Current Liabilities was ₹14.51 Mil.
Long-Term Debt & Capital Lease Obligation was ₹0.00 Mil.
Net Income was ₹2.08 Mil.
Gross Profit was ₹0.00 Mil.
Cash Flow from Operations was ₹-3.96 Mil.

Total Receivables was ₹2.89 Mil.
Revenue was ₹58.56 Mil.
Gross Profit was ₹6.89 Mil.
Total Current Assets was ₹41.97 Mil.
Total Assets was ₹566.80 Mil.
Property, Plant and Equipment(Net PPE) was ₹1.15 Mil.
Depreciation, Depletion and Amortization(DDA) was ₹0.42 Mil.
Selling, General, & Admin. Expense(SGA) was ₹3.98 Mil.
Total Current Liabilities was ₹11.63 Mil.
Long-Term Debt & Capital Lease Obligation was ₹0.00 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI	=	(Receivables_t / Revenue_t)	/	(Receivables_t-1 / Revenue_t-1)
	=	(10.959 / 67.305)	/	(2.888 / 58.557)
	=	0.162826	/	0.049319
	=	3.3015

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI	=	GrossMargin_t-1	/	GrossMargin_t
	=	(GrossProfit_t-1 / Revenue_t-1)	/	(GrossProfit_t / Revenue_t)
	=	(6.888 / 58.557)	/	(12.34 / 67.305)
	=	0.117629	/	0.183344
	=	0.6416

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (36.278 + 1.378) / 572.217)	/	(1 - (41.974 + 1.152) / 566.795)
	=	0.934193	/	0.923913
	=	1.0111

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI	=	Sales_t	/	Sales_t-1
	=	Revenue_t	/	Revenue_t-1
	=	67.305	/	58.557
	=	1.1494

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI	=	(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))	/	(Depreciation_t / (Depreciaton_t + PPE_t))
	=	(0.418 / (0.418 + 1.152))	/	(0.605 / (0.605 + 1.378))
	=	0.266242	/	0.305093
	=	0.8727

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI	=	(SGA_t / Sales_t)	/	(SGA_t-1 /Sales_t-1)
	=	(9.082 / 67.305)	/	(3.982 / 58.557)
	=	0.134938	/	0.068002
	=	1.9843

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((0 + 14.512) / 572.217)	/	((0 + 11.634) / 566.795)
	=	0.025361	/	0.020526
	=	1.2356

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA	=	(IncomefromContinuingOperations_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(NetIncome_t - NonOperatingIncome_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(2.081 - 0	-	-3.959)	/	572.217
	=	0.010555

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Lee & Nee Softwares (Exports) has a M-score of -0.63 signals that the company is likely to be a manipulator.

Lee & Nee Softwares (Exports) Beneish M-Score Related Terms

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Lee & Nee Softwares (Exports) (BOM:517415) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Lee & Nee Softwares (Exports) Ltd (BOM:517415) » Definitions » Beneish M-Score

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Traded in Other Exchanges

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Address

14-B, Camac Street, Kolkata, WB, IND, 700017

Website

https://www.lnsel.com

Lee & Nee Softwares (Exports) Ltd is engaged in Information Technology and related services. It is engaged in the business of developing, designing, manufacturing, processing, assembling, computer software, and hardware products and allied products and providing ERP solutions and services for website design and development, mobile applications development, and digital marketing. It generates all its revenues from Computer Programming, Consultancy, and related activities.

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