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Lead Financial Services Ltd.

BSE: 531288 Sector: Financials
NSE: N.A. ISIN Code: INE531D01010
BSE 00:00 | 18 Oct 4.70 0
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4.70

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NSE 05:30 | 01 Jan Lead Financial Services Ltd
OPEN 4.70
PREVIOUS CLOSE 4.70
VOLUME 5
52-Week high 5.25
52-Week low 3.62
P/E
Mkt Cap.(Rs cr) 2
Buy Price 4.70
Buy Qty 494.00
Sell Price 4.70
Sell Qty 118.00
OPEN 4.70
CLOSE 4.70
VOLUME 5
52-Week high 5.25
52-Week low 3.62
P/E
Mkt Cap.(Rs cr) 2
Buy Price 4.70
Buy Qty 494.00
Sell Price 4.70
Sell Qty 118.00

Lead Financial Services Ltd. (LEADFINANCIALS) - Auditors Report

Company auditors report

TO THE MEMBERS OF LEAD FINANCIAL SERVICES LIMITED

Report on the financial statements

We have audited the accompanying financial statements of Lead Financial ServicesLimited ("the Company") which comprise the Balance Sheet as at 31stMarch 2018 and the Statement of Profit and Loss and Cash Flow Statement for the year thenended and a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the financial statements

The Company's Board of Directors is responsible for the matters in section 134(5) ofthe Companies Act 2013 ("the Act") with respect to the preparation of thesefinancial statements that give a true and fair view of the financial position financialperformance and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes the maintenance of adequate accounting records in accordancewith the provision of the Act for safeguarding of the assets of the Company and forpreventing and detecting the frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of internal financial control thatwere operating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

Auditors' Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit. 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 thereunder. We conducted our audit in accordancewith the Standards on Auditing specified under section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement. An audit involves performing procedures to obtain audit evidence about theamounts and 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 true and fair view in order to design audit procedures thatare appropriate in the circumstances but not for the purpose of expressing an opinion onwhether the Company has in place an adequate internal financial controls system overfinancial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonablenessof the accounting estimates made by Company's Directors as well as evaluating the overallpresentation of 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 financial statements give a true and fair view in conformity with theaccounting principles generally accepted in India:

(a) in the case of the Balance Sheet of the state of affairs of the Company as at 31stMarch 2018;

(b) in the case of the Statement of Profit and Loss of the profit for the year endedon that date; and

(c) in the case of the Cash Flow Statement of the cash flows for the year ended onthat date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")as amended issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in the "Annexure A" a statement on the mattersspecified in paragraphs 3 and 4 of the Order.

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 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 appears from our examination of those books.

(c) The Balance Sheet The Statement of Profit and Loss and Cash Flow Statement dealtwith by this Report are in agreement with the books of account.

(d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.

(e) On the basis of written representations received from the directors as on 31 March2018 taken on record by the Board of Directors none of the directors is disqualified ason 31 March 2018 from being appointed as a director in terms of Section 164(2) of theAct

(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".

(g) With respect to the other matters included in the Auditor's Report and to our bestof our information and according to the explanations given to us :

i. The Company has disclosed the impact of pending litigations on its financialposition in the financial statements.

ii. The Company did not have any long-term contracts including derivatives contractsfor which there were any material foreseeable losses.

iii. There were no amounts which required to be transferred to the Investor Educationand Protection Fund by the Company.

iv. The reporting on disclosure relating to Specified Bank Notes is not applicable tothe Company for the year ended 31st March 2018.

For B G G & ASSOCIATES
Chartered Accountants
F R N. 016874N
CA. Alok Kumar Bansal
Place of Signature: New Delhi Partner
Date: 28.05.2018 M. No. 092854

Annexure "A" to Independent Auditor's Report

The Annexure referred to in paragraph 1 under the heading ‘Report on Other Legal& Regulatory Requirements' of our report to the members of LEAD FINANCIAL SERVICESLIMITED ("the Company") for the year ended March 31 2018.

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

(b) The fixed assets have been physically verified during the year by the management.In our opinion the frequency of verification is reasonable having regard to the size ofthe Company and the nature of its assets. To the best of our knowledge no discrepancieshave been noticed on such verification.

(c) As per the records and according to information and explanations given to us titledeeds of immovable properties are held in the name of the company.

ii. As explained to us inventories have been verified by the management at regularintervals during the year. No discrepancy has been noticed on verification between thestatements obtained from depository participants and the books records.

iii. According to the Information and explanation given to us the Company has notgranted any loans secured or unsecured to companies firms limited liabilitypartnerships or other parties covered in the register maintained under section 189Companies Act 2013. Accordingly Clauses (a) (b) and (c) of sub Para iii of paragraph 3of the order are not applicable.

iv. According to the information & Explanation given to us the company has notgiven any loans and guarantees to parties covered under section 185 and 186 of theCompanies Act 2013.

v. In our opinion and according to the information and explanations given to us thecompany has not accepted any deposits from public to which the directives issued byReserve Bank of India and provisions of sections 73 to 76 of the Companies Act 2013including rules framed there under apply. Further no order has been passed by theCompany Law Board or National Company Law Tribunal or Reserve Bank of India or any othertribunal.

vi. The company is a Non-Banking finance company hence clause (vi) of Companies(Auditors' Report) Order 2016 regarding compliance of maintenance of cost records underclause of sub section (1) of section 148 of the Companies Act 2013 is not applicable tothe company.

vii. (a) According to the books and records produced before us the company is regularin depositing with appropriate authorities undisputed statutory dues including providentfund employees' state insurance income-tax sales-tax goods & services tax wealthtax service tax duty of customs duty of excise value added tax cess and any otherstatutory dues with the appropriate authority as applicable to it.

(b) According to the books and records produced before us there are no dues of incometax or sales tax or wealth tax or service tax or duty of customs or duty of excise orgoods & services tax or value added tax or cess which have not been deposited onaccount of any dispute.

viii. According to the books of accounts and records of the company there has been nodefault in repayment of dues to any financial institutions or banks or debenture holdersduring the year. ix. According to the information and explanations given to us and ourexamination of the records of the Company the Company has not raised any moneys by way ofinitial public offer or further public offer (including debt instruments) or by way ofterm loan during the current financial year.

x. Based on our audit procedures and on the basis of the information and explanationsgiven to us no fraud by the company or by its officer or employees has been noticed orreported during the course of our audit.

xi. According to the books of accounts and records of the company managerialremuneration has been paid / provided in accordance with the requisite approvals mandatedby the provisions of section 197 read with schedule V to the Companies Act.

xii. According to the information and explanations given to us the Company is not aNidhi Company. Therefore the provisions of paragraph 3 (xii) of the Order are notapplicable to the Company.

xiii. Based on our audit procedure and according to the information and explanationgiven to us all transaction with the related parties are in compliance with section 177& section 188 of Companies Act-2013 and details of the same is disclosed in thefinancial statement as required by the applicable accounting standards.

xiv. Based on our audit procedures and on the basis of the information and explanationsgiven to us the company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year under Audit.

xv. According to the books of accounts and records of the company the company has notentered into any non-cash transactions with directors or persons connected with him incompliance with provisions of Section 192 of Companies Act 2013.

xvi. According to the information and explanations given by the management the companyis required to be registered under section 45 IA of the Reserve Bank of India Act 1934and has obtained registration accordingly.

For B G G & ASSOCIATES
Chartered Accountants
F R N. 016874N
CA. Alok Kumar Bansal
Place of Signature: New Delhi Partner
Date: 28.05.2018 M. No. 092854

Annexure "B" to the Independent Auditor's Report

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of LeadFinancial Services Limited ("the Company") as of March 31 2018 in conjunctionwith our audit of the financial statements of the Company for the year ended on that date.

Management's Responsibility 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 control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India (‘ICAI').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 ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditors' Responsibility

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 and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate 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 controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial misstatement 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; and (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 the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2018 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 B G G & ASSOCIATES
Chartered Accountants
F R N. 016874N
CA. Alok Kumar Bansal
Place of Signature: New Delhi Partner
Date: 28.05.2018 M. No. 092854

Independent Auditors' Report

To the Board of Directors of Lead Financial Services Limited

Additional Report as per Direction of RBI

As required by the Non-Banking Financial Companies Auditor's Report (Reserve Bank)Directions 2016 (the Directions) issued by the Reserve Bank of India in terms ofsub-section (1A) of section 45MA of the Reserve Bank of India Act 1934 we give thefollowing statements on the matters specified in paragraphs 3 and 4 of the Directions:-

1. The company is engaged in the business of Non - Banking Financial institution asdefined in section 45-I (a) of the RBI Act and meeting the Principal Business Criteria(Financial asset/ Income pattern) as laid down vide the Bank's press release dated April08 1999 and directions issued by DNBR. The company has obtained a Certificate ofRegistration from the Reserve Bank of India.

2. The Company is entitled to hold such Certificate of Registration in terms ofPrincipal Business Criteria (Financial asset/ Income pattern) as on March 31 2018.

3. The company is meeting the required net owned fund requirement as laid down inMaster Direction - Non-Banking Financial Company - Non-Systemically Important Non-Deposittaking Company (Reserve Bank) Directions 2016.

4. The Board of Directors has passed a resolution for non-acceptance of any publicdeposits.

5. The company has not received any public deposits during the financial year 2017-18.

6. The company has duly complied with the prudential norms relating to incomerecognition accounting standards asset classification and provisioning for bad anddoubtful debts as applicable to it in terms of Non-Banking Financial Company -Non-Systemically Important Non-Deposit taking Company (Reserve Bank) Directions 2016.

For B G G & ASSOCIATES
Chartered Accountants
F R N. 016874N
CA. Alok Kumar Bansal
Place of Signature: New Delhi Partner
Date: 28.05.2018 M. No. 092854