Accounting Policies of Lead Financial Services Ltd. Company

Mar 31, 2014

The financial statements have been prepared in accordance with applicable Accounting Standards notified by the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant requirements of the Companies Act, 1956. Significant accounting policies applied in preparing and presenting these financial statements are set out below:

1.1 Basis of Accounting

Financial statements have been prepared under historical cost convention and on the basis of going concern.

1.2 Revenue Recognition

Income from operations which comprises sale of shares, interest income, hire charges, lease rentals, etc. are all accounted for on an accrual basis except for dividend income which is considered on receipt basis. Advisory service charges are accounted for on accrual basis.

1.3 Fixed Assets

Fixed Assets are recorded at cost of acquisition. They are stated at historical cost less accumulated depreciation.

1.4 Depreciation

Depreciation is provided as per Written Down Value Method in accordance with the provisions of Schedule XIV of the Companies Act, 1956 on assets put to use. Depreciation is charged on prorata basis for assets purchased/ sold during the year.

1.5 Impairment

Impairment is recognized at each balance sheet date in respect of the company''s fixed assets. An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and the value in use. In assessing the value in use, the estimated future cash flows are discounted to their present value, based on an appropriate discount factor.

1.6 Investments

Investments are classified into Current Investments and Non-Current/ Long Term Investments. Current Investments are carried at the lower of cost and fair value and provisions are made to recognize the decline in the carrying value. Non-Current/ Long Term investments are stated at cost. Provision for diminution in the value of Non-Current/ Long- Term Investments is made only if such decline is other than temporary, in the opinion of the management.

1.7 Inventories

Stock in trade is valued at cost or market value, whichever is lower.

1.8 Employee Benefits

Gratuity is charged to the Statement of Profit and Loss through a provision of accruing liability based on assumption that such benefits are payable to all the eligible employees at the end of accounting year.

1.9 Taxation

Current Tax: Provision for Income Tax is made in accordance with the provisions of the Income Tax Act, 1961.

Deferred Tax: Deferred Tax is recognized on timing difference between taxable and accounting income that originates in one period and is capable of reversal in one or more subsequent periods. The deferred tax asset is recognized and carried forward only to the extent there is reasonable certainty of its realization.

1.10 Contingent Liabilities

Contingent Liabilities are not provided for and generally disclosed by way of Notes to Accounts, if any.

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Mar 31, 2013

The financial statements have been prepared in accordance with applicable Accounting Standards notified by the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant requirements of the Companies Act, 1 9,56. Significant accounting policies applied in preparing and presenting these financial statements are set out below:

1.1 Basis of Accounting

Financial statements have been prepared under historical cost convention and on the basis of going concern.

1.2 Revenue Recognition

Income from operations which comprises sale of shares, interest income, hire charges, lease rentals, etc. are all accounted for on an accrual basis except for dividend income which is considered on receipt basis. Advisory service charges are accounted for on accrual basis.

1.3 Fixed Assets

Fixed Assets are recorded at cost of acquisition. They are stated at historical cost less accumulated depreciation.

1.4 Depreciation

Depreciation is provided as per Written Down Value Method in accordance with the provisions of Schedule XIV of the Companies Act, 1956 on assets put to use. Depreciation is charged on prorata basis for assets purchased/ sold during the year.

1.5 Impairment

Impairment is recognized at each balance sheet date in respect of the company''s fixed assets. An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and the value in use. In assessing the value in use, the estimated future cash flows are discounted to their present value, based on an appropriate discount factor.

1.6 Investments

Investments are classified into Current Investments and Non-Current/ Long Term Investments. Current Investments are carried at the lower of cost and fair value and provisions are made to recognize the decline in the carrying value. Non-Current/ Long Term investments are stated at cost. Provision for diminution in the value of Non-Current/ Long- Term Investments is made only if such decline is other than temporary, in the opinion of the management.

1.7 Inventories

Stock in trade is valued at cost or market value, whichever is lower.

1.8 Employee Benefits

Gratuity is charged to the Statement of Profit and Loss Account through a provision of accruing liability based on assumption that such benefits are payable to all the eligible employees at the end of accounting year.

1.9 Taxation

Current Tax: Provision for Income Tax is made in accordance with the provisions of the Income Tax Act, 1961.

Deferred Tax: Deferred Tax is recognized on timing difference between taxable and accounting income that originates in one period and is capable of reversal in one or more subsequent periods. The deferred tax asset is recognized and carried forward only to the extent there is reasonable certainty of its realization.

1.10 Contingent Liabilities

Contingent Liabilities are not provided for and generally disclosed by way of Notes to Accounts, if any.

(AMOUNT IN RS.) PARTICULARS AS AT AS AT 31.03.13 31.03.12

2. Share Capital Authorised Capital 35,00,000 (31 March, 2012: 35,00,000) Equity Shares of Rs.10/-each 3,50,00,000 3,50,00,000

Issued, Subscribed and Paid up 33,00,000 (31 March, 2012: 33,00,000) Equity Shares of Rs.10/- each, fully paid-up 3,30,00,000 3,30,00,000

3,30,00,000 3,30,00,000

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Mar 31, 2010

1. Basis of Accounting

Financial statement are prepared under historical cost convention and on the basis of a going concern.

2. Revenue Recognition

3. Fixed Assets

Fixed Assets are recorded at cost of acquisition. They are stated at historical cost less depreciation.

4. Depreciation

5. Investments

Investments are valued as . cost. Shares, debentures and securities which the management intends to hold on long term basis are

6. Inventories

Stock in trade is valued at cost or market value whichever is low.

7. Employee Benefits

Gratuity is charged to profit a loss account through a provision of accruing liability based on assumption that such benefits are

8. TAXATION

Current Tax : Provision for Income Tax is made in accordance with the provision of Income Tax Act, 1961.

9. Contingent is Liabilities

Contingent Liabilities are not provided for and generally disclosed by way of Notes to accounts, if any.