To, The Members of Lead Financial Services Limited
 
 The Directors have pleasure in presenting the 19th Annual Report with
 Audited Statement of Accounts of the company for the year ended 31s''
 March, 2012.
 
 FINANCIAL RESULTS:
 
 Financial results of the company for the year under review are
 summarized as below: 
 
                                                        (Rs. In Lacs)
 
 Particulars                                Year Ended    Year Ended
                                            31.03.2012    31.03.2011
 
 Total Revenue                                 46.35          69.28
 
 Profit Before Depreciation & Tax              15.47          11.71
 
 Depreciation                                   0.78           0.24
 
 Profit/(Loss) Before Tax                      14.68          11.47
 
 Provision for Tax-Current                      4.86           4.10
 
 - Deferred                                   (0.047)        (0.001)
 
 ProfitV(Loss) after Tax                        9.87           7.37
 
 Transfer to Statutory Reserve                  1.97           1.47
 
 Surplus Carried to Balance Sheet              49.07          54.96
 
 PERFORMANCE REVIEW:
 
 During the year under review, your company achieved total revenue of
 Rs.46.35 Lacs as compared to Rs. 69.28 Lacs in the previous year. Net
 profit for the year is Rs.9.87 Lacs as compared to net profit of Rs.
 7.37 Lacs in the previous year. Your directors are undertaking the
 initiatives to improve the financial results in the coming years.
 
 MANAGEMENT DISCUSSION AND ANALYSIS :
 
 Industrial Structure and Development
 
 Fiscal 2012 was a challenging year for the global economy. Prolonged
 uncertainty around the resolution of the Eurozone sovereign debt
 crisis, rating downgrades of sovereigns and slow recovery of the US
 economy increased risks to global growth.
 
 The Indian economy saw moderation in economic activity during fiscal
 2012, following domestic macroeconomic conditions of high interest
 rates and slowdown in investments. India''s gross domestic product (GDP)
 grew by 6.9% during the first nine months of fiscal 2012, compared to a
 growth of 8.1% in the corresponding period of fiscal 2011.
 
 The Union Budget for fiscal 2013 has projected the government''s fiscal
 deficit to come down from an estimated 5.9% of GDP in fiscal 2012 to
 5.1% in fiscal 2013. RBI has projected India''s GDP to grow by 7.3% in
 fiscal 2013, with credit growth estimated at 17.0% and deposit growth
 at 16.0%. RBI has projected inflation to be at 6.5% in March 2013.
 
 Outlook, Risk and Concern
 
 Risk Management Policy of the company provides a summary of company''s
 principles regarding risk taking and risk management. The principles
 are based on the best practices and designs to avoid conflict of
 interests. The company has developed an elaborate risk strategy in
 terms of policy guidelines, for managing and monitoring various risks
 
 The primary risks that the Company is exposed to are: Credit risk
 (Corporate & Retail lending), Market risk (Liquidity and Interest rate
 risk) and Operational risk. The Company''s risk policies outline the
 products offered, customer and client categories, credit approval
 processes with limits and risk monitoring and reporting.
 
 The Management reviews risk policies from time to time to address
 strategy and portfolio/balance sheet risks arising from equity
 investments, credit, liquidity movements and interest rate movements
 
 Opportunities and Threats
 
 The performance of capital market is in correlation with the economic
 growth of the country as well as global economy, performance of various
 sectors, inflation, global market, etc. Instability of any of the
 factors may affect the market adversely. The capital market operation
 involves inbuilt risk and uncertainty, which carries various
 opportunities and threats to the investors
 
 The Financial Stability Report (FSR) by the Financial Stability Unit
 constituted by the Reserve Bank stress for institutionalizing the focus
 on financial stability and making it an integral part of the policy
 framework. The first FSR makes an assessment of the strength of the
 financial sector, with particular focus on banks, and has raised some
 concerns, including rising inflation, high government borrowings and
 likely surge in capital flows, from the financial stability standpoint.
 
 The FSR also emphasised the need for evolving a stronger supervisory
 regime for systemically important non-deposit taking non-banking
 financial companies (NBFCs-ND-SI)and strengthening the monitoring and
 oversight framework for systemically important financial conglomerates.
 Overall risk to financial stability was found to be limited. However,
 the recent financial turmoil has clearly demonstrated that financial
 stability cannot be taken for granted, and that the maintenance of
 financial stability requires constant vigilance, especially during
 normal times to detect and mitigate any incipient signs of instability.
 
 Adequacy of Internal Control System
 
 The Company maintains a system of well established policies and
 procedures for internal control of operations and activities, and these
 are continually reviewed for effectiveness. The internal control system
 is supported by qualified personnel and a continuous program of
 internal audit. The prime objective of such audits is to test the
 adequacy and effectiveness of all internal control systems laid''down by
 the management and to suggest improvements..We believe that the
 Company''s overall system of internal control is adequate given the size
 and nature of operations and effective implementation of internal
 control self assessment procedures. The Company encourages and
 recognizes improvements in work practices. The internal control system
 of the Company is also reviewed by the Audit Committee periodically.
 
 Financial Performance
 
 Operational Results, 2010-11 Versus 2011-12:              (Rs. in Lacs)
 
 Particulars                                      2010-11      2011-12
 
 Total Revenue                                      69.28        46.35
 
 Interests Financial Charges                         1.50        12.32
 
 Expenses                                           56.07        18.57
 
 Depreciation                                        0.24         0.78
 
 Total Expenditure                                  57.82        31.67
 
 Profit before Tax(PBT)                             11.47        14.68
 
 Provision for Tax                                   4.10         4.82
 
 Profit aftertax (PAT)                               7.37         9.86
 
 Equity Capital                                       330          330
 
 Reserves & Surplus                                 64.30        74.17
 
 Earning per Share                                   0.22         0.30
 
 Segment wise Performance
 
 Company operates only in one segment.
 
 DIVIDEND:
 
 Your Directors regret their inability to recommend any dividend in view
 of deploying the funds for expansion of business during the year under
 review.
 
 FIXED DEPOSITS :
 
 Your Company has not accepted any deposits from public. There are no
 unclaimed or unpaid deposits as on 31st March, 2012.
 
 DIRECTORS:
 
 Sh. Vijay Kumar, Whole-Time Director of the Company retires by rotation
 at the forthcoming Annual General Meeting and being eligible offers
 himself for re-appointment.
 
 MATERIAL CHANGES:
 
 There are no material changes and commitments, affecting the financial
 position of the company between the end of financial year of your
 company and the date of Director''s Report.
 
 AUDITORS:
 
 M/s. G.C. Sharda & Co., Chartered Accountants, the Auditors of the
 company retires at the forthcoming Annual General Meeting and are
 eligible for re-appointment. The Audit Qommittee and your Board
 recommend their reappointment as Auditors of the Company. The company
 has received letter from them to the effect that their appointment, if
 made would be within prescribed limit under Section 224(1 B) of the
 Companies Act, 1956.  AUDITOR''S REPORT:
 
 The observations in the Auditor''s Report are dealt in the notes forming
 part of accounts at appropriate places and the same being self
 explanatory, no further comment is considered necessary.
 
 DEMATERIALISATION OF SHARES:
 
 As the members are aware, your company''s shares are tradable compulsory
 in electronic form. Accordingly, your company has established
 connectivity with both the depositories i.e. National Securities
 Depository Ltd. (NSDL) and Central Depository Services (India) Ltd.
 (CDSL). Members may avail the facility of dematerialisation of
 company''s shares on either of the Depositories as aforesaid.
 
 DIRECTORS''RESPONSIBILITY STATEMENT:
 
 Pursuant to Section 217(2AA) of the Companies Act, 1956, with respect
 to Directors'' Responsibility Statement, it is hereby confirmed:
 
 i) That in thapreparation of the accounts for the financial year ended
 31st March, 2012, the applicable accounting standards have been
 followed along with proper explanation relating to material departures.
 
 ii) That the Directors have selected such accounting policies and
 applied them consistently and made judgments and estimates that were
 reasonable and prudent so as to give a true and fair view of the state
 of affairs of the Company at the end ofthe financial year and of the
 profit of the Company for the year under review.
 
 iii) That the Directors have taken proper and sufficient care for the
 maintenance of adequate accounting records in accordance with the
 provisions ofthe Companies Act, 1956 for safeguarding the assets ofthe
 Company and for preventing and detecting fraud and other
 irregularities.  
 
 iv) That the Directors have prepared the accounts for the financial
 year ended 31st March, 2012 on ''going concern'' basis.
 
 PARTICULARS OF EMPLOYEES:
 
 There is no employee whose particulars are required to be furnished in
 terms of Sec. 217(2A) of the Companies Act, 1956 and rules made
 thereunder.
 
 PERSONNEL:
 
 The Board wishes to place on record their deep appreciation of all
 employees of the company for their endeavor and co-operation. The
 relations with employees continued to be cordial throughout the year.
 
 CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
 EARNINGS AND OUTGO:
 
 Particulars regarding conservation of energy, technology absorption,
 foreign exchange, earning and outgo
 
 Information as required under section 217 (1) (e) of the Companies Act,
 1956 read with the Companies (Disclosure of particulars in the report
 of the board of Directors) Rules, 1988 for forming part of the
 Director''s report for the financial year ended 31s'' March, 2012 is as
 follows :-
 
 1.   Conservations of Energy
 
 a.  Energy conservation measures taken Not Applicable
 
 b.  Additional investment & proposals if any being implemented.  Not
 Applicable
 
 c.  Impact of measures of a & b above for reduction Not applicable Of
 energy consumption and consequent impact
 
 On cost of production
 
 Total energy consumption and energy consumption Not Applicable
 
 Per unit of production as perform ''A of the
 
 Annexure in respect of industries specified in the schedule thereto.
 
 2.  Technology Absorption Research and Development (R&D)
 
 1.  Specific area in which R & D is carried by the company '' The
 company is conducting R & D to make its business more profitable.
 
 2.  Benefits derived as a result of the above R &D The awareness of
 investor''s benefit has increased.
 
 3.  Future plan of action The company would continue R&Ds for more
 investors awareness.
 
 4.  Expenditure on R & D The company has not undertaken any major
 expenditure
 
 i) Capital  on R & D
 
 ii) Recurring Total
 
 Total R & D Expenditure as a percentage of total turnover
 
 Technology Absorption, Adaptation and innovation
 
 1.  Efforts in brief, made through towards 
     technology absorption,                               Not Applicable
     adaptation and innovation
 
 2.  Benefits derived as a result of the above 
     efforts, e.g. product                                Not Applicable
     improvement, cost reduction, product development,
     import substitution etc.
 
 3.  Information regarding imported technology
 
 (a) Technology Imported                                  None
 
 (b) Year of Import                                       Not Applicable
 
 (c) Has the technology been fully absorbed               Not Applicable
 
 (d) It not fully absorbed, areas where this has 
     not taken place,                                     Not Applicable
     reasons therefore and future plans of action
 
 3.  Foreign Exchange Earnings and Outgo
 
 1.  Activities relating to exports; initiative taken to increase
 exports; Nil development of new export markets for products, services
 and export plans. 
 
 2.  Total foreign exchange used and earned The information of foreign
 exchange earnings and outflow is furnished in notes to accounts.
 
 CORPORATE GOVERNANCE:
 
 A report on Corporate Governance appears in this Annual Report and the
 certificate from M/s. GC. Sharda & Co., Chartered Accountants,
 Statutory Auditors with regard to Compliance of the Corporate
 Governance code by your company is annexed hereto as Annexure and forms
 part of this report. 
 
 ACKNOWLEDGEMENT:
 
 We thank our clients, investors and bankers for their continued support
 during the year. We place on record our appreciation of
 the.contribution made by employees at all levels. We thank the
 Government of India, particularly the Securities And Exchange Board of
 India (SEBI), Stock Exchanges, the State Governments, and other
 government agencies/authorities for their support, and iook forward to
 their continued support in future.
 
 Your Company''s employees are the keys for its attaining new heights.
 Your Directors place on record their deep appreciation of the
 commitment and professionalism displayed by them.
 
 We also value the support provided by the Company''s Shareholders and we
 look forward to your continuing future support.
 
                                         FOR AND ON BEHALF OF THE BOARD
 
                                                            P.C. BINDAL
 
 Dated :6th August, 2012                                       CHAIRMAN
 
 Place : New Delhi                                        DIN: 00004769