Mar 31, 2014
We have audited the accompanying financial statements of Lead Financial
Services Limited ("the Company"), which comprise the Balance Sheet as
at March 31, 2014, the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31,2014;
b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books
c) the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) in our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956;
e) on the basis of written representations received from the directors
as on March 31,2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31,2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
Annexure to Independent Auditor''s Report
Referred to in Paragraph 1 under the heading of "Report on Other Legal
and Regulatory Requirements" of our report of even date
i) In respect of its fixed assets:
a) The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b) As explained to us, all the fixed assets have been physically
verified by the management in a phased periodical manner, designed to
cover all the items over a period of three years, which in our opinion
is reasonable having regard to the size of the Company and nature of
its assets. Pursuant to the program, a portion of the fixed assets has
been physically verified by the management during the year and no
material discrepancies were noticed on such physical verification.
c) During the year, the company has not disposed off substantial /
major part of fixed assets.
ii) In respect of its Inventories:
a) As explained to us, the inventory has been physically verified
during the year by the management. In our opinion, the frequency of
verification is reasonable.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
c) In our opinion and according to the information and explanations
given to us and on the basis of our examination of the records of
inventory, the company is maintaining proper records of inventory.
There were no discrepancies noticed on verification between the
physical stocks and the books records.
iii) According to the information & explanations given to us, the
company has neither granted nor taken any loans, secured or unsecured,
to/ from parties covered in the register maintained u/s 301 of the
Companies Act, 1956. Accordingly, the clauses (iii) (a) to (g) of
paragraph 4 of the Order are not applicable.
iv) In our opinion and according to the information and explanation
given to us, there are adequate internal control systems commensurate
with the size of the company and the nature of its business with regard
to purchases of inventory and fixed assets, sale and services. During
the course of our audit, we have not observed any major weakness in
internal controls.
v) a) According to the information and explanations given to us, we are
of the opinion that the particulars of contracts or arrangements
referred to in section 301 of the companies Act, 1956 have been so
entered.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts/
arrangements entered in the Register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of Rs. 5,00,000/- in
respect of each party during the year have been made at prices which
appear reasonable as per information available with the company.
vi) In our opinion and according to the information and explanations
given to us, the company has not accepted any deposits from public to
which provisions of sections 58A and 58AA of the Companies Act, 1956
and the Companies (Acceptance of Deposits) Rules, 1975 apply. No order
has been passed by the Company Law Board or National Company Law
Tribunal or Reserve Bank of India or any Court or any other Tribunal.
vii) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business. The directors
are themselves implementing the system.
viii) The company is an investment & finance company, hence clause
4(viii) of the Order regarding maintenance of cost records under
section 209 (1) (d) of the Companies Act, 1956 is not applicable to the
company.
ix) a) Undisputed statutory dues including provident fund, investor
education and protection fund, employees'' state insurance, income tax,
sales tax, wealth tax, service tax, custom duty, excise duty, cess and
other material statutory dues applicable to it have been regularly
deposited with the appropriate authorities.
b) According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, investor
education and protection fund, employees'' state insurance, income tax,
sales tax, wealth tax, service tax, customs duty, excise duty and cess
and other material statutory dues applicable to it were in arrears, as
at 31st March, 2014 for a period of more than six months from the date
they become payable.
c) According to the information and explanations given to us, there are
no dues of sales tax, income tax, customs duty, wealth tax, service
tax, excise duty and cess which have not been deposited on account of
any dispute.
x) The company does not have any accumulated losses at the end of the
year. The Company has not incurred any cash losses during the current
and the immediately preceding financial year.
xi) In our opinion and according to the information and explanations
given to us, during the year under audit, the company did not have any
borrowings from any financial institution, bank or debenture holders.
xii) According to the information and explanations given to us, the
company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
xiii) In our opinion, the company is not a chit fund or a nidhi/ mutual
benefit fund/ society. Therefore, the provisions of clause 4 (xiii) of
the Order are not applicable to the company.
xiv) a) Based on the records examined by us and according to the
information and explanations given to us, we are of the opinion that
the company is maintaining proper records of the transactions and
contracts of dealing in shares and securities and that timely entries
have been made in these records.
b) Based on our audit procedures and to the best of our knowledge and
belief and according to the information and explanations given to us,
the shares and other investments have been held in the Company in its
own name except to the extent of the exemption granted under section 49
of the Companies Act, 1956.
xv) According to the information and explanations given to us, the
company has given guarantee for loans taken by others from banks and
financial institutions. In our opinion and according to the information
and explanations given to us, the terms and conditions of such a
guarantee are prima facie not prejudicial to the interests of the
company.
xvi) According to the information and explanations given to us, the
company has not availed any term loan during the year under audit.
xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet and cash flow statement of
the company, we report that no funds raised on short-term basis have
been used for long-term investment.
xviii) According to the information and explanations given to us, the
company has not made preferential allotment of shares to parties and
companies covered in the register maintained under section 301 of the
Act.
xix) According to the information and explanations given to us, the
company had not issued any debentures during the year.
xx) According to the information and explanations given to us, the
company had not raised any money by public issue during the year.
xxi) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
For G.C. SHARDA & CO.
Chartered Accountants
(FRN - 500041N)
[CAAdit Sharda]
Partner
M. No. 526605
Place of Signature: New Delhi
Date: May 26, 2014
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Lead Financial
Services Limited ("the Company"), which comprise the Balance Sheet as
at March 31, 2013, the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement Of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order.to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of theaccounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true arid fair
view in conformity with the accounting principles generally accepted in
India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
c) in the case of the Cash Flow Statement, of the 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, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books
c) the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) in our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956;
e) on the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
f) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
Annexure to Independent Auditor''s Report
Referred to in Paragraph 1 under the heading of "Report on Other Legal
and Regulatory Requirements" of our report of even date i) In respect
of its fixed assets:
a) The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b) As explained to us, all the fixed assets have been physically
verified by the management in a phased periodical manner, designed to
cover all the items over a period of three years, which in our opinion
is reasonable having regard to the size of the Company and nature of
its assets. Pursuant to the program, a portion of the fixed assets has
been physically verified by the management during the year and no
material discrepancies were noticed on such physical verification.
c) During the year, the company has not disposed off substantial /
major part of fixed assets. ii) In respect of its Inventories:
a) As explained to us, the inventory has been physically verified
during the year by the management. In our opinion, the frequency of
verification is reasonable.
b) In our opinion and according to the information and explanations
givenjp us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
c) In our opinion and according to the information and explanations
given to us and on the basis of our examination of the records of
inventory, the company is maintaining proper records of inventory.
There were no discrepancies noticed on verification between the
physical stocks and the books records.
iii) According to the information & explanations given to us, the
company has neither granted nor taken any loans, secured or unsecured,
to/ from parties covered in the register maintained u/s 301 of the
Companies Act, 1956. Accordingly, the clauses (iii) (a) to (g) of
paragraph 4 of the Order are not applicable.
iv) In our opinion and according to the information and explanation
given to us, there are adequate internal control systems commensurate
with the size of the company and the nature of its business with regard
to purchases of inventory and fixed assets, sale and services. During
the course of our audit, we have not observed any major weakness in
internal controls.
v) a) According to the information and explanations given to us, we are
of the opinion that the particulars of contracts or arrangements
referred to in section 301 of the companies Act, 1956 have been so
entered.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts/
arrangements entered in the Register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of Rs. 5,00,000/-in
respect of each party during the year have been made at prices which
appear reasonable as per information available with the company.
vi) In our opinion and according to the information and explanations
given to us, the company has not accepted any deposits from public to
which provisions of sections 58A and 58AA of the Companies Act, 1956
and the Companies (Acceptance of Deposits) Rules, 1975 apply. No order
has been passed by the Company Law Board or National Company Law
Tribunal or Reserve Bank of India or any Court or any other Tribunal.
vii) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business. The directors
are themselves implementing the system.
viii) The company is anjnvestment & finance company, hence clause
4(viii) of the Order regarding maintenance of cost records under
section 209 (1) (d) of the Companies Act, 1956 is nofrapplicable to the
company.
ix) a) Undisputed statutory dues including provident fund, investor
education and protection fund, employees'' state insurance, income tax,
sales tax, wealth tax, service tax, custom duty, excise duty, cess and
other material statutory dues applicable to it have been regularly
deposited with the appropriate authorities.
b) According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, investor
education and protection fund, employees'' state insurance, income tax,
sales tax, wealth tax, service tax, customs duty, excise duty and cess
and other material statutory dues applicable to it were in arrears, as
at 31s1 March, 2013 for a period of more than six months from the date
they become payable.
c) According to the information and explanations given to us, there are
no dues of sales tax, income tax, customs duty, wealth tax, service
tax, excise duty and cess which have not been deposited on account of
any dispute.
x) The company does not have any accumulated losses at the end of the
year. The Company has not incurred any cash losses during the current
and the immediately preceding financial year.
xi) In our opinion and according to the information and explanations
given to us, during the year under audit, the company did not have any
borrowings from any financial institution, bank or debenture holders.
xii) According to the information and explanations given to us, the
company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
xiii) In our opinion, the company is not a chit fund or a nidhi/ mutual
benefit fund/ society. Therefore, the provisions of clause 4 (xiii) of
the Order are not applicable to the company. ¦
xiv) a) Based on the records examined by us and according to the
information and explanations given to us, we are of the opinion that
the company is maintaining proper records of the transactions and
contracts of dealing in shares and securities and that timely entries
have been made in these records.
b) Based on our audit procedures and to the best of our knowledge and
belief and according to the information and explanations given to us,
the shares and other investments have been held in the Company in its
own name except to the extent of the exemption granted under section 49
of the Companies Act, 1956.
xv) According to the information and explanations given to us, the
company has given guarantee for loans taken by others from banks and
financial institutions. In our opinion and according to the information
and explanations given to us, the terms and conditions of such a
guarantee are prima facie not prejudicial to the interests of the
company.
xvi) According to the information and explanations given to us, the
company has not availed any term loan during the year under audit.
xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet and cash flow statement of
the company, we report that no funds raised on short-term basis have
been used for long-term investment.
xviii) According to the information and explanations given to us, the
company has not made preferential allotment of shares to parties and
companies covered in the register maintained under section 301 of the
Act.
xix) According to the information and explanations given to us, the
company had not issued any debentures during the year. ]
xx) According to the information and explanations given to us, the
company hatThot raised any money by public issue during the year.
xxi) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
Fora CSHARDA & CO.
Chartered Accountants
(FRN-500041N)
(C.A.ADITSHARDA)
Place : New Delhi Partner
Date : 29.05.2013 M.No.526605
Mar 31, 2012
1. We have audited the attached Balance Sheet of Lead Financial
Services Limited as at 31 st March, 2012, Profit & Loss Account and
also the Cash Flow Statement for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
company's management. Our responsibility is to express an opinion on
these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 (as
amended) ("Order") issued by Central Government of India in terms of
sub-section (4A) of section 227 of the Companies Act, 1956, we enclose
in the Annexure a statement on the matters specified in paragraphs 4
and 5 of the said Order.
4. Further to our comments in the annexure referred to above, we
report that:
i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
ii) In our opinion, proper books of account as required by the law have
been kept by the company, so far as appears from our examination of
those books ;
iii) The balance sheet, profit & loss account, and cash flow statement
dealt with by this report are in agreement with the books of account;
iv) In our opinion, the balance sheet, profit & loss account and cash
flow statement dealt with this report comply with the accounting
standards referred in section 211(3C)of the Companies Act, 1956;
v) On the basis of the written representations received from the
directors as on 31st March, 2012 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31st March, 2012 from being appointed as a director in terms of clause
(g) of subsection (1) of section 274 of the Companies Act, 1956;
5) In our opinion, and to the best of our information and according to
the explanations given to us, the said accounts, read together with
notes give the information required by the Companies Act, 1956 in the
manner so required and give a true and fair view in conformity with
accounting principles generally accepted in India:
a) In the case of Balance Sheet, of the state of affairs of the company
as at 31st March, 2012 ;
b) In the case of Profit & Loss Account, of the Profit of the company
for the year ended on that date; and
c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE TO THE
MEMBERS OF LEAD FINANCIAL SERVICES LIMITED FOR THE YEAR ENDED ON 31st
MARCH, 2012
i) In respect of its fixed assets:
a) The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b) As explained to us, all the fixed assets have been physically
verified by the management in a phased periodical manner, designed to
cover all the items over a period of three years, which in our opinion
is reasonable having regard to the size of the Company and nature of
its assets. Pursuant to the program, a portion of the fixed assets has
been physically verified by the management during the year and no
material discrepancies were noticed on such physical verification.
c) During the year, the company has not disposed off substantial /
major part of fixed assets.
ii) In respect of its Inventories:
a) As explained to us, the inventory has been physically verified
during the year by the management. In our opinion, the frequency of
verification is reasonable.
b) In our opinion e.i.c according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
c) In our opinion anJ according to the information and explanations
given to us and on the basis of our examination of the records of
inventory, the company is maintaining proper records of .inventory.
There was no discrepancies noticed on verification between the physical
stocks and the books records.
iii) According to the information & explanations given to us, the
company has neither granted nor taken any loans secured or unsecured,
to/from parties covered in the register maintained u/s 301 of the
Companies Act, 1956. Accordingly, the clauses (iii) (a) to (g)of
paragraph 4 of the order are not applicable.
iv) In our opinion and according to the information and explanation
given to us, there are adequate internal control systems commensurate
with the size of the company and the nature of its business with regard
to purchases of inventory and fixed assets, sale and services. During
the course of our audit, we have not observed any major weakness in
internal controls.
v) a) According to the information and explanations given to us, we are
of the opinion that the particulars of contracts or arrangements
referred to in section 301 of the companies Act, 1956 have been so
entered.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts
/arrangements entered in the Register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of Rs. 5,00,000/- in
respect of each party during the year have been made at prices which
appear reasonable as per information available with the company.
vi) In our opinion and according to the information and explanations
given to us, the company has not accepted any deposits from public to
which provisions of sections 58A and 58AA of the Companies Act, 1956
and the Companies (Acceptance of Deposits) Rules, 1975 apply. No order
has been passed by the Company Law Board or National Company Law
Tribunal or Reserve Bank of India or any Court or any other Tribunal.
vii) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business. The directors
are themselves implementing the system.
viii) The companyis an investment & finance company, hence clause
4(viii) of the order regarding maintenance of cost records under
section 209 (1) (d) of the Companies Act, 1956 is not applicable to the
company.
ix) a) Undisputed statutory dues including provident fund, investor
education and protection fund, employees' state insurance, income tax,
sales tax, wealth tax, service tax, custom duty, excise duty, cess and
other material statutory dues applicable to it have been regularly
deposited with the appropriate authorities.
b) According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, investor
educatiorrand protection fund, employees' state insurance, income tax,
sales tax, wealth tax, service tax, customs duty, excise duty and cess
and other material statutory dues applicable to it were in arrears, as
at 31s' March, 2012 for a period of more than six months from the date
they become payable.
c) According to the information and explanations given to us, there are
no dues of sales tax, income tax, customs duty, wealth tax, service
tax, excise duty and cess which have not been deposited on account of
any dispute.
x) The company does not have any accumulated losses at the end of the
year. The Company has not incurred any cash losses during the current
and the immediately preceding financial year.
xi) In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to a
financial institution, bank or debenture holders.
xii) According to the information and explanations given to us, the
company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
xiii) In our opinion, the company is not a chit fund or a nidhi/ mutual
benefit fund/ society. Therefore, the provision of clause 4 (xiii) of
the order are not applicable to the company.
xiv) a) Based on the records examined by us and according to the
information and explanations given to us, we are of the opinion that
the company is maintaining proper Records of the transactions and
contracts of dealing in shares and securities arrd that timely entries
have been made in these records.
b) Based on our audit procedures and to the best of our knowledge and
belief and according to the information and explanations given to us,
the shares and other investments have been held in the Company in its
own ngme except to the extent of the exemption granted under section 49
of the Companies Act, 1956.
xv) According to the information and explanations given to us, the
company has given guarantee for loans taken by others from banks and
financial institutions. In our opinion and according to the information
and explanation given to us, the terms and conditions of such a
guarantee are not prima facie prejudicial to the interest of the
company.
xvi) According to the information and explanations given to us, the
company has not availed any term loan during the year under audit.
xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet and cash flow statement of
the company, we report that no funds raised on short-term basis have
been used for long-term investment.
xviii) According to the information and explanations given to us, the
company has not made preferential allotment of shares to parties and
companies covered in the register maintained under section 301 of the
Act.
xix) According to the information and explanations given to us, the
company had not issued any debentures during the year. xx) According
to the information and explanations given to us, the company had not
raised any money by public issue during the year. xxi) According to
the information and explanations given to us, no fraud on or by the
company has been noticed or reported during the course of our audit.
For GLC.SHARDA & CO.
Chartered Accountants
(FRN-500041N)
[CA.Vandna Gopal Sharda]
Partner
Membership No.091051
Place: New Delhi
Date: 26.05.2012
Mar 31, 2010
1. We have audited the attached balance sheet of Lead Financial
Services Limited as at 31 st March, 2010 and the profit & loss .
account and also the cash flow statement for the year ended on that
date annexed thereto. These financial statements are the responsibility
of the companys management. Our responsibility Is to express an
opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audi also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 ( as
amended) issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Companies Act, 1956, we enclose
in the Annexure a statement on the matters specified in paragraphs 4
and 5 of the said Order
4. Further to our comments in the annexure referred to above, we
report that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose, of our
audit;
b) In our opinion, proper books of account as required by law have been
kept by the company, so far as appears from our examination of those
books ;
c) The balance sheet, profit & loss account, and cash flow statement
dealt with by this report are in agreement with the books of account;
d) In our opinion, the balance sheet, profit & loss account and cash
flow statement dealt with this report comply with the accounting
standards referred in sub section (3C)of Section211 of the Companies
Act, 1956 ;
e) On the basis of the written representations received from the
directors as on 31st March, 2010 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31st March, 2010 from being appointed as a director in terms of clause
(g) of sub section (1) of section 274 of the Companies Act, 1956 ;
vi) In our opinion, and to the best of our information and according to
the explanations given to us, the said accounts , read together with
significant accounting policies and notes to accounts thereto give the
information required by the Companies Act, 1956 in the manner so
required and give a true and fair view in conformity with accounting
principles generally accepted in India:
a) In the case of Balance Sheet, of the state of affairs of the company
as at 31st March, 2010 ;
b) In the case of Profit & Loss Account, of the Profit of the company
for the year ended on that date; and
c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE TO THE
MEMBER OF LEAD FINANCIAL SERVICES LIMITED FOR THE YEAR ENDED ON 31st
MARCH, 2010
i) In respect of its fixed assets:
a) The company has maintained proper records showing full particulars
including quantitative Details and situation of fixed assets.
b) As explained to us, all the fixed assets have been physically
verified by the management in a phased periodical manner, designed to
year and no material discrepancies were noticed on such physical
verification.
c) During the year, the company has not disposed off substantial /
major part of fixed assets. ii) In respect of its Inventories:
a) As explained to us, the Inventory has been physically verified
during the year by the management. In our opinion, the frequency of
verification is reasonable.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
physical stocks and the books records.
order are not applicable.
e) The company had taken interest free loan from three parties covered
in the register maintained under section 301 of the Companies Act,
1956. The maximum amount involved during the year was Rs. 69.00 lacs
and the year end balance of loans taken from such parties was Rs. 69.00
lacs
g) The company is regular in repaying the principal amounts as
stipulated .
iv) In our opinion and according to the information and -explanation
given to us, there are adequate internal control systems commensurate
with the size of the company and the nature of its business with regard
to purchases of inventory and fixed assets sale and services. During
the course of our audi we have not observed any major weakness in
internal controls.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts /
5,00t000/- in respect of each party during the year have been made at
prices which appear reasonable as per information available
vi) In our wit pinion a company according to the information and
explanations given to us, the company has not accepted any deposits
from public to which provisions of sections 58A and 58AA of the
Companies Act 1956 and the Companies (Acceptance of Deposits) Rules,
1975 apply. No order has been passed by he Company Law Board or
National Company Law Tribunal or Reserve Bank of India or any Court or
any
vii) In our opinion, . the company has an internal audit system
commensurate with the size and nature of its business. The directors
are
viii) The company is an en investment & finance company, hence clause
4(viii) of Companies (Auditors Report) Order, 2003 regarding mainte-
nance ofcost records under section 209 (1) (d) of the Companies
Act,1956 is not applicable to the company.
ix) a) Undisputed statutory dues including provident fund, investor
education and protection fund, employees state insurance, income tax,
sales tax, wealth tax service tax, custom duty, excise duty, cess and
other material statutory dues applicable to it have been regularly
b) A epos ding to the information and explanations. ions given to us,
no undisputed amounts payable in respect of provident fund, investor
x) The company does not have any accumulated losses at the end of the
year. The Company has not incurred any cash losses during the current
and the immediately preceding financial year.
xi) In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to a
financial institution, bank or debenture holders.
xii) According to the information and explanations given to us, the
company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
xiii) In our opinion, the company is not a chit fund or a nidhi/ mutual
benefit fund/ society. Therefore, the provision of clause 4 (xiii) of
the Companies (Auditors Report) Order, 2003 are not applicable to the
company.
xiv) a) Based on the records examined by us and according to the
information and explanations given to us, we are of the opinion that
the company is maintaining proper record of the transactions and
contracts of dealing in shares and securities and those timely entries
-have " been made in these records. b) Based on our audit procedures
and to the best of our knowledge and belief and according to the
information and explanations given to us, the shares and other
investments have been held in the Company in its own name except to the
extent of the exemption granted under section 49 of the Companies Act,
1956.
xv) According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others from
banks and financial institutions.
xvi) According to the information and explanations given to us, the
company has not availed any term loan during the year under audit.
xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet and cash flow statement of
the company, we report that no funds raised on short-term basis have
been used for long-term investment.
xviii) According to the information and explanations given to us, the
company has not made preferential allotment of shares to parties and
companies covered in the register maintained under section 301 of the
Act.
xix) According to the information and explanations given to us, the
company had not issued any debentures during the year.
xx) According to the information and explanations given to us, the
company had not raised any money by public issue during the year.
xxi) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit
For G.C.SHARDA & CO.
Chartered Accountants
[CA.V.G SHARDA]
Partner
M. No.: 091051
FRN. 500041N
Place :New Delhi
Date : 28.05.2010