Notes to Accounts of Lead Financial Services Ltd.

Mar 31, 2024

k. Provisions

Provision is recognized when an enterprise has a present obligation (legal or constructive) as a
result of a past event and it is probable that an outflow of resources will be required to settle the
obligation, in respect of which a reliable estimate can be made. Provisions are determined based
on management estimates required to settle the obligation at the balance sheet date,
supplemented by experience of similar transactions. These are reviewed at the balance sheet date
and adjusted to reflect the current management estimates.

l. Cash & Cash Equivalents

For the purpose of presentation in statement of cash flow, cash and cash equivalents include cash
on hand, other short term, highly liquid investments with original maturities of three months or
less that are readily convertible to known amount of cash and which are subject to an
insignificant risk of change in value.

m. Dividends

The Company recognises a liability to make cash distributions to equity holders of the Company
when the distribution is authorised and the distribution is no longer at the discretion of the
Company. As per the corporate laws in India, a distribution is authorised when it is approved by
the shareholders. A corresponding amount is recognised directly in equity.

n. Earnings Per Share

Basic earnings per share is calculated by dividing the profit attributable to the equity
shareholders of the Company by the weighted average number of equity shares outstanding
during the financial year.

Diluted earnings per share is calculated by dividing the profit attributable to the equity
shareholders of the Company (after adjusting the corresponding income/ charge for dilutive
potential equity shares, if any) by the weighted average number of equity shares outstanding
during the financial year plus the weighted average number of additional equity shares that
would have been issued on conversion of all the dilutive potential equity shares.

5. Recent accounting pronouncements

Ministry of Corporate Affairs (''MCA'') notifies new standards or amendments to the existing
standards under Companies (Indian Accounting Standards) Rules as issued from time to time.
For the year ended March 31, 2024, MCA has not notified any new standards or amendments to
the existing standards applicable to the Company.

Nature & Purpose of Other Equity

(i) Retained Earnings : Retained earnings are the profits that the Company has earned till date, less any transfers to general
reserve.

(ii) Reserve Fund as per RBI Act: Reserve Fund is created as per the terms of section 45-IC(1) of the Reserve Bank of India Act,
1934 as a statutory reserve.

(iii) General Reserve: Amounts set aside from retained earnings as a reserve to be utilised for permissible general purpose as per
law.

(iv) Other Comprehensive Income: Other comprehensive income consists of gain/ (loss) of equity instruments carried through
FVTOCI.

* For movements during the Y ear, refer Statement of Changes in Equity.

29 Contingent Liabilities

Contingent Liabilities in respect of Guarantees given in respect of loan taken by others, is limited to investment property
mortgaged having book value of Rs. 210.20 Lakhs and subject to adjustment of realizations. The proceedings in respect of
matters under litigation are in early stage. Impact of the above will be considered as and when the same arises.

30 Capital Commitments

Estimated amount of contracts remaining to be executed on capital accounts (net of advances) Rs. NIL (March 31, 2023: Rs.
NIL).

31 No provision has been made for Gratuity as no employee has completed qualifying period of service.

32 Amounts due to Micro & Small enterprises under MSMED Act, 2006 is Rs. Nil (March 31, 2023: Rs. Nil). In the absence of
information about registration of such enterprises under the said Act, the details of dues to Micro & Small Enterprises have been
furnished to the extent such parties have been identified by the Company based on information made available by them.

38 Financial Risk Management

Financial risk management objective & policies

The Company is a Non-Banking Finance Company. Its principal financial liabilities comprise borrowings and trade and other payables. The main purpose of these financial liabilities is to finance and support
the Company’s operations. The Company’s principal financial assets include inter corporate deposits, loans, investments, cash and cash equivalents, trade and other receivables.

The Company is exposed to market risk, credit risk and liquidity risk. The Company’s senior management looks after the management of these risks. The Company’s senior management is responsible to ensure
that Company’s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company’s policies and risk
objectives. All activities for risk management purposes are carried out by specialist teams that have the appropriate skills, experience and supervision. The Board of Directors reviews and agrees policies for
managing each of these risks, which are summarised below.

(i) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, foreign
currency risk and other price risk. Financial instruments affected by market risk include loans & borrowings, inventories & investments.

(a) Interest Rate Risk

Interest rate risk is the risk that the fair value of the 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 interests rate primarily relates to the Company''s long-term debt obligations with floating interest rates. The Company’s policy is to manage its interest cost using a mix of fixed & floating rate
borrowings.

As at March 31, 2024 & March 31, 2023, the Company did not have any floating rate borrowings and hence, no Interest Rate Risk.

(b) Price Risk

The Company is mainly exposed to the price risk due to its Investments in equity instruments, preference instruments and debt instruments and classified in balance sheet at fair value through profit & loss. The
price risk arises due to uncertainties about the future market values of these Instruments.The Company has laid down policies & guidelines which it adheres to in order to minimise price risk from these
Instruments.

(c) Foreign Currency Risk

Foreign currency risk is the risk that the fair value of future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company does not have any foreign currency exposure
during the current year as well as in previous financial years and hence, no Foreign Currency Risk.

(ii) Credit Risk

Credit risk is the risk that the Company will incur a loss because its customers or counterparties fail to discharge their contractual obligations. The Company manages and controls credit risk by setting limits on
the amount of risk it is willing to accept for individual counterparties and for geographical and industry concentrations, and by monitoring exposures in relation to such limits. The Company is also exposed to
credit risk from deposits with banks and other financial instruments.

Credit risk is monitored by the management. It is their responsibility to review and manage credit risk. The Company has established a credit quality review process to provide early identification of possible
changes in the creditworthiness of counterparties, including regular collateral revisions. Counterparty limits are established by the use of a credit risk classification system, which assigns each counterparty a
risk rating. Risk ratings are subject to regular revision. The credit quality review process aims to allow the Company to assess the potential loss as a result of the risks to which it is exposed and take corrective
actions.

The Company classifies its financial assets in three stages having the following characteristics:

Stage 1: unimpaired and without significant increase in credit risk since initial recognition on which a 12-month allowance for ECL is recognised;

Stage 2: a significant increase in credit risk since initial recognition on which a lifetime ECL is recognised; and

Stage 3: objective evidence of impairment, and are therefore considered to be in default or otherwise credit impaired on which a lifetime ECL is recognised.

Unless identified at an earlier stage, all financial assets are deemed to have suffered a significant increase in credit risk when they are 30 days past due (DPD) or one instalment overdue on the reporting date and
are accordingly transferred from stage 1 to stage 2. For stage 1, an ECL allowance is calculated based on a 12-month point in time (PIT) probability weighted probability of default (PD). For stage 2 and stage
3 assets, a lifetime ECL is calculated based on a lifetime PD.

(Hi) Liquidity Risk

Liquidity risk is the risk that the Company may encounter difficulty in meeting its present and future obligations associated with financial liabilities that are required to be settled by delivering cash or another
financial asset.

Company monitors risk of shortage of funds using cash flow forecasting models. These models consider the maturity of financial investments, committed funding and projected cash flows from operations.

The Company’s objective is to provide financial resources to meet its business objectives in a timely, cost effective and reliable manner. A balance between continuity of funding and flexibility is maintained
through the use of borrowings. The Company also monitors compliance with its debt covenants.

43 The disclosures on the following matters required under Schedule III (as amended) not being relevant or applicable in case of the Company, same are not covered:

a) The Company has not traded or invested in crypto currency or virtual currency during the financial year.

b) No proceedings have been initiated or are pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

c) The Company has not been declared willful defaulter by any bank or financial institution or government or any government authority.

d) The Company has not entered into any scheme of arrangement.

e) No registration and/or satisfaction of charges are pending to be filed with ROC.

f) There are no transactions which are not recorded in the books of account which have been surrendered or disclosed as income during the year in the tax assessments under the Income T ax Act, 1961.

g) The Company does not have any relationship with companies whose names have been struck off under section 248 of Companies Act, 2013 or section 560 of Companies Act, 1956 in the financial years ended
March 31, 2024 and March 31, 2023.

48 Disclosures in terms of RBI Notification - RBI/DOR/2021-22/86 DOR.STR.REC.51/21.04.048/2021-22 dated 24 September 2021 (Master Direction - Reserve Bank of India (Transfer
of Loan Exposures) Directions, 2021):

During the financial year ended March 31, 2024:

a. No loans (not in default) have been acquired through assignment,

b. No loans (not in default) have been transferred through assignment, and

c. No stressed loan has been acquired/ transferred.

49 Figures are rounded off to nearest rupees in Lakhs.

50 Figures for the previous periods have been regrouped/ reclassified to conform to the classification of the current period, wherever necessary.

As per our report of even date

For B G G & Associates On behalf of the Board of Directors

Chartered Accountants
Firm Registration No. 016874N

Sd/- Sd/_- Sd/-

(CA. Alok Kumar Bansal) P.C. Bindal Sudesh Gupta

Partner Chairman Chief Executive

M.No. 092854 DIN: 00004769 Officer

Sd/- Sd/-

Place: New Delhi Atul Vaibhav Kriti Jain

Date: May 24, 2024 Chief Financial Company Secretary

Officer

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Mar 31, 2014

1. (a) Terms/ Rights attached to equity shares

The company has only one class of equity shares having par value of Rs. 10 per share. Each Holder of Equity Shares is entitled to one vote per share.

The company declares and pays dividend in Indian Rupees.

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. The distribution will be in proportion to the number of equity shares held by shareholders.

2. Contingent Liabilities

In respect of Guarantees given in respect of loan taken by others, an amount not exceeding Rs. 6,89,00,000 (31 March, 2013: Rs. 6,89,00,000)

3. Capital & Other Commitments

Estimated amount of contracts remaining to be executed on Capital Accounts (Net of advances) Rs. Nil (31 March, 2013: Rs. Nil)

4. Segment Reporting

The company is a Non Banking Financial Company. Since there is only one segment in which company is operating, Segment Reporting as required under Accounting Standard-17 notified by the Companies (Accounting Standards) Rules, 2006 (as amended) is not applicable.

5. The company has not given any loans and advances in the nature of loan required to be disclosed pursuant to Clause 32 of the Listing Agreement.

6. No. provision has been made for Gratuity as no employee has completed qualifying period of service.

7. In the opinion of Board of Directors, all the current assets, loan & advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated, except those stated otherwise and that all known liabilities relating to the year have been provided for.

8. The Company is in the process of identifying suppliers who are Micro, Small & Medium Enterprises under the Micro, Small & Medium Enterprises Development Act, 06 & has yet to receive any written confirmation from them. Therefore, the disclosures required under section 22 of the said Act are not necessary.

9. Party balances are subject to confirmation from them.

10. Previous Year''s Figures

Previous period figures have been regrouped /recast to conform the current year classifications.

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Mar 31, 2013

1. Contingent Liabilities

In respect of Guarantees given in respect ot loan taken by others, an amount not exceeding Rs. 6,89,00,000 (31 March, 2012: Rs. 6,50,00,000)

2. Capital & Other Commitments

Estimated amount of contracts remaining to be executed on Capital Accounts (Net of advances) Rs. Nil (31 March, 2012: Rs. Nil)

3. Segment Reporting ''

The company is a Non Banking Rnancial Company. Since there is only one segment in which company is operating, Segment Reporting as required under Accounting Standard-17 notified by the Companies (Accounting Standards) Rules, 2006 is not applicable.

4. The Company is in the process of identifying suppliers who are Micro, Small & Medium Enterprises under the Micro, Small & Medium Enterprises Development Act, 06 & has yet to receive any written confirmation from them. Therefore, the disclosures required under section 22 of the said Act are not necessary.

5. Parties balances are subject to confirmation from them.

6. Previous Year''s Figures period figures have been regrouped/ recast to conform to the current year classifications.

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Mar 31, 2012

1. Contingent Liabilities

In respect of Guarantees given in respect of loan taken by others, an amount not exceeding Rs. 6.50 Crores.

2. Capital & Other Commitments

Estimated amount of contracts remaining to be executed on Capital Accounts (Net of advances) Rs. Nil (31 March, 2011: Rs. Nil)

3. Segment Reporting

The company is a Non Banking Financial Company. Since there is only one segment in which company is operating,

Segment Reporting as required under Accounting Standard-17 notified by the Companies (Accounting Standards) Rules, 2006 is not applicable.

4. Related Party Transactions

5. The company has not given any loans and advances in the nature of loan required to be disclosed pursuant to Clause 32 of the Listing Agreement.

6. No. provision has been made for Gratuity as no employee has completed qualifying period of service.

7. In the opinion of Board of Directors, all the current assets, loan & advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated, except those stated otherwise and that all known liabilities relating to the year have been provided for.

8. No dues are payable by the Company to the parties covered under Micro, Small & Medium Enterprises Development Act, 06.

9. Parties balances are subject to confirmation from them.

10. Previous Year's Figures

Till the year ended 31 March,2011, the company was using pre-revised Schedule VI to the Companies Act, 1956 for prepration and presentation of financial statements. During the year ended 31st March,2012, the Revised Schedule VI notified under Companies Act,1956 has become applicable to the Company. The adoption of Revised Schedule VI does not impact recognition and measurement principles followed for prepration for financial statements. However, it significantly impacts presentation and disclosures made in the financial statements, particularly presentation of Balance Sheet. As a result, previous years' figures have been regrouped/ reclassified to conform to this year's financial statements where necessary.

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Mar 31, 2010

1. Contingent Liabilities Rs Nil (P.Year Rs. Nil).

2. Segment Reporting

4. Related Party Transactions:

1. Related Party Disclosures

A) Subsidiary Company: NIL

B) Names of related parties with whom transactions have taken place during the year.

Associates : LFS Securities Ltd LFS Services Pvt. Ltd.

b. Individuals owing significant shareholding and occupying, key management position and his relatives.

P.C.Bindal HUF .

Other key management person:

P.C.Binda(Chairman)

5. The company has not given any loans and advances in the nature of loan required to be disclosed pursuant to clause 32 of listing

6. Earning per Share :-

Calculation of Earning Per Share - Basic & Diluted

7. Estimated amount of contracts remaining to be executed on Capital Accounts (Net of advances) Rs. Nil (Pr. Year. Nil).

8. The company has created necessary statutory reserve as per the guidelines issued by the Reserve Bank of India.

9. Total Management remunerations paid/payable to the directors is Rs. 1,80,000/- (Pr. Yr. 1,20,000/-)

10. No. provision has been made for gratuity as no employee has completed qualifying period of service.

11. In the opinion of Board of Directors, all the current assets, loan & advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated, except those stated otherwise and that all the known liabilities relating

12. Previous year figures have been regrouped/ rearranged wherever necessary to make figures comparable.

13. All the figures are stated in Indian Rupees.

14. Schedule "A" to V are integral part of Balance Sheet and Profit and Loss Account.