To,
The Members,
FRONTIER CAPITAL LIMITED
Your Directors are pleased to present the Fortieth (40th) Annual report of
your Company along with the Audited Standalone Accounts drawn for the financial year ended
on March 31, 2024.
The Company's financial performance for the year under review along with previous
year's figures is given hereunder: FINANCIAL RESULTS:
| Particulars |
31-03-2024 |
31-03-2023 |
| Revenue from Operations |
28.12 |
31.23 |
| Other Income |
0.69 |
42.90 |
| Total Income |
28.80 |
74.13 |
| Total Expenditure |
17.83 |
49.90 |
| Profit Before Tax |
10.97 |
24.23 |
| Provision for Taxation (Including Current tax, Deferred Tax & Income
Tax of earlier Years) |
0.00 |
4.18 |
| Net Profit |
10.97 |
28.41 |
| Profit Brought Forward |
10.97 |
28.41 |
| Net Profit after profit attributable to minority shareholders |
10.97 |
28.41 |
| Item of other comprehensive income recognised directly in retained
earnings - on defined benefit plan |
00.0 |
00.0 |
| Profit Available for Appropriation |
10.97 |
28.41 |
| APPROPRIATIONS: |
|
|
| Transfer to reserve u/s 45-IC of RBI Act, 1934 |
2.19 |
5.68 |
| Surplus Balance carried to Balance Sheet |
8.78 |
22.73 |
BUSINESS PERFORMANCE:
The Company's revenue from operations for the financial year was Rs.28.12/- Lakhs and
the previous year's revenue from operations of Rs.31.23/- Lakhs. Net Profit (PAT) is
Rs.10.97/- Lakhs.
ANNUAL RETURN AS PER SECTION 92 (3) OF COMPANIES ACT 2013:
In pursuance to the provisions of Section 92(3) of the Companies Act, 2013 read with
Rules made thereunder and amended time to time, the Annual Return of the Company for the
Financial Year ended on March 31, 2024 is available on the website of the company i.e.
www.frontiercapital.in and the web link of the same is
https://www.frontiercapital.in/investors-corner
BOARD MEETINGS HELD DURING THE YEAR:
The Company had Eight Board Meetings during the financial year under review:
| Sr. No. |
Date on Which Board Meetings were held |
Total Strength of the Board |
No. of Directors Present |
| 1 |
29.04.2023 |
5 |
5 |
| 2 |
29.05.2023 |
5 |
5 |
| 3 |
09.08.2023 |
5 |
5 |
| 4 |
29.08.2023 |
5 |
5 |
| 5 |
05.09.2023 |
5 |
5 |
| 6 |
08.11.2023 |
5 |
5 |
| 7. |
14.02.2024 |
5 |
5 |
| 8. |
20.03.2024 |
6 |
6 |
DIRECTORS' RESPONSIBILITY STATEMENT:
In terms of Section 134(5) of the Companies Act, 2013, the Board of Directors, to the
best of its knowledge and ability would like to state that:
a) in the preparation of the annual accounts, the applicable accounting standards had
been followed along with proper explanations relating to material departures;
b) they had 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 of the financial year and of the
profit and loss of the Company for the year under review;
c) they had taken proper and sufficient care for the maintenance of adequate accounting
records in accordance with the provisions of this Act for safeguarding the assets of the
Company and for preventing and detecting fraud and other irregularities;
d) they had prepared annual accounts on a going concern basis;
e) they had laid down internal financial controls to be followed by the Company and
such internal financial controls are adequate and were operating effectively;
f) They had devised proper systems to ensure compliance with the provisions of all
applicable laws and such systems were in place were adequate and operating effectively.
COMPANY'S POLICY RELATING TO DIRECTOR'S APPOINTMENT, PAYMENT OF REMUNERATION AND
DISCHARGE OF THEIR DUTIES:
The Company's Policy relating to appointment of Directors, payment of Managerial
remuneration, Directors' qualifications, positive attributes, independence of Directors
and other related matters as provided under Section 178(3) of the Companies Act, 2013 is
furnished as attached to this report. "Annexure - 1". The weblink for the same
is www.frontiercapital.in.
AUDITORS:
Statutory Auditors:
At the 36th Annual General Meeting held on December 10, 2020, the members
had appointed M/s. A. C. Bhuteria & Co., Chartered Accountants (Firm Registration No.
303105E), Kolkata as Statutory Auditors for a term of Five years beginning from the
conclusion of the 36th AGM till the conclusion of the 41st Annual
General Meeting of the Company to be held in the financial year 2026.
There is no qualification, reservation or adverse remark raised by Statutory Auditor in
Auditor's report for the year under review.
Secretarial Auditors:
In the Board Meeting held on March 20, 2024 M/s. S Bhattbhatt & Co., Practising
Company Secretaries were appointed as Secretarial Auditor of the Company for the financial
year 2023-24.
In pursuance to the provisions of Section 204 of the Companies Act, 2013 read with
Rules framed thereunder and in compliance of Regulation 24A of Securities Exchange Board
of India (Listing Obligations & Disclosure Requirements) Regulations, 2015
("Listing Regulations") M/s. S Bhattbhatt & Co., Practising Company
Secretaries, had conducted secretarial audit of the company for the financial year
2023-24. The Secretarial Audit Report is annexed which is forming part to this report as
"Annexure - 2".
Remarks or Qualifications by Secretarial Auditors and comments from the Board.
1. Internal Auditor has not been appointed by the Company under section 138 of the
Companies Act, 2013 for the F.Y. 2022-23; Management Reply: The Company is looking for a
suitable candidature.
2. Newspaper Publication with respect to intimation of Board Meeting and financial
results are not as per Regulation 47 of SEBI (LODR) Regulations, 2015; Management Reply:
Due to financial constraints, the company has opted for a cost-cutting approach and
decided not to publish the results in newspapers. However, the results can be accessed on
the Stock Exchange and company's website.
3. The Company had not paid listing fees of the company for the year 2023-24.
Management Reply: The company had failed to pay Listing Fees for the Financial Year
2023-24 within due period.
FRAUDS REPORTED BY THE AUDITOR:
During the year under review, no frauds have been reported by the Auditor (Statutory
Auditor, Secretarial Auditor) to the Audit Committee / Board, under Section 143(12) of the
Companies Act, 2013.
A STATEMENT ON DECLARATION GIVEN BY INDEPENDENT DIRECTORS UNDER SUB-SECTION (6) OF
SECTION 149:
The Company has received declarations from Independent Directors of the Company that
they meet with the criteria of independence as prescribed under Subsection (6) of Section
149 of the Companies Act, 2013 read with Rule 6 (1) and (3) of Companies (Appointment and
Qualifications of Directors) Rules, 2014 as amended from time to time and Regulation 16
& 25 Securities and Exchange Board of India (Listing Obligations and Disclosure
Requirements) Regulations, 2015 ('the Listing Regulations').
All Independent Directors of your Company are registered with Indian Institute of
Corporate Affairs as per the requirement of Section 149 of the Companies Act, 2013 and
rules framed thereunder.
During the year under review, the Non-Executive Directors of the Company had no
pecuniary relationship or transactions with the Company, other than sitting fees, paid to
them for the purpose of attending meetings of the Board / Committee of the Company.
MATTERS AS PRESCRIBED UNDER SUB-SECTIONS (1) AND (3) OF SECTION 178 OF THE COMPANIES
ACT, 2013:
The Nomination & Remuneration Committee consists of three Independent Directors.
The powers and function of the Nomination and Remuneration Committee is stated in the
Nomination and Remuneration Committee Charter of Frontier Capital Limited. The
Remuneration policy is available at the Web link: https://www.frontiercapital.in/
investors-corner.
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS UNDER SECTION 186:
The loan made, guarantee given or security provided in the ordinary course of business
by a NBFC registered with Reserve Bank of India are exempt from the applicability of
provisions of Section 186 of the Act. As the Company being a NBFC registered with RBI the
restrictions contained in the said provisions are not applicable to the Company.
PARTICULARS CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES REFERRED TO IN SUBSECTION
(1) OF SECTION 188:
All Contracts / Arrangements / Transactions executed by the Company during the
financial year with related parties were in the ordinary course of business and on arm's
length basis. The Audit Committee reviews all Related Party Transaction on quarterly
basis. Particulars of such related party transactions described in Form AOC-2 as required
under Section 134 (3)(h) of the Act, read with Rule 8(2) of the Companies (Accounts) Rules
2014, which is annexed herewith as "Annexure - 3".
AMOUNT, IF ANY, WHICH THE BOARD PROPOSES TO CARRY TO ANY RESERVES:
During the year under review Rs.2.19/- Lakhs transferred to statutory reserve under
Section 45 IC of RBI Act, 1934.
MATERIAL CHANGES AND COMMITMENTS AFFECTING FINANCIAL POSITION OF THE COMPANY:
No material changes and commitments affecting the financial position of the Company
during the period under review to the date of this Report. There has been no change in the
nature of business of the Company.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO:
Conservation of Energy and Technology Absorption:
Since the Company is operating in service sector, the provisions of Section 134(3)(m)
of the Companies Act, 2013 regarding conservation of energy and Technology Absorption are
not applicable.
Foreign Exchange earnings and outgo
The Company has no Foreign Exchange earnings and outgo.
RISK MANAGEMENT:
The Company has constituted a Risk Management Policy which has been entrusted with
responsibility to Board in overseeing the Company's Risk Management process and controls,
risk tolerance and capital liquidity and funding and also setting the strategic plans and
objections for the risk management and review of risk management of the company and also
review the company's risk appetite and strategy relating to key risks, including credit
risk, liquidity and funding risk, market risk, product risk and reputational risk, as well
as guidelines, policies and processes for monitoring and mitigating such risks.
The Board takes responsibility for the overall process of the risk management in the
organization. The business risk is managed through cross functional involvement and
communication across businesses.
CORPORATE SOCIAL RESPONSIBILITY (CSR):
The provisions relating to Corporate Social Responsibility under Section 135 of the
Companies Act, 2013 and rules made thereunder are not applicable to the Company.
Therefore, the Company has not developed and implemented any policy on Corporate Social
Responsibility initiatives.
FORMAL EVALUATION OF THE PERFORMACE OF THE BOARD, COMMITTEES OF THE BOARD AND
INDIVIDUAL DIRECTORS:
Pursuant to the provisions of 134(3)(p) the Companies Act, 2013 and Listing
Regulations, the Board has carried out the annual performance evaluation of its own
performance, the Directors individually including Independent Directors as well as the
evaluation of the working of its Committees. The evaluation was carried on the basis of
structured questionnaire was prepared after taking into consideration inputs received from
the Directors, covering various aspects of the Board's functioning such as adequacy of the
composition of the Board and its Committees, level of engagement and participation, Board
culture, execution and performance of specific duties, obligations and governance. The
Board has expressed their satisfaction with the evaluation process.
In pursuant to Regulation 17(10) of Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements) Regulations, 2015 the evaluation of Independent
Directors were done by the entire board of directors which includes -
(a) Performance of the directors; and
(b) Fulfilment of the independence criteria as specified in the regulations and their
independence from the management.
Criteria adopted for evaluation:
The Board shall evaluate the roles, functions, duties of Independent Directors (ID's)
of the Company. Each ID shall be evaluated by all other directors' not by the Director
being evaluated. The board shall also review the manner in which ID's follow guidelines of
professional conduct. Further, in a separate meeting of Independent Directors, performance
of nonindependent directors, the Board as whole and the Chairman of the Company was
evaluated.
(i) Performance review of all the Non-Independent Directors of the company on the basis
of the activities undertaken by them, expectation of board and level of participation;
(ii) Performance review of the Chairman of the Company in terms of level of competence
of chairman in steering the company;
(iii) The review and assessment of the flow of information by the Company to the board
and manner in which the deliberations take place, the manner of placing the agenda and the
contents therein;
(iv) The review of the performance of the directors individually, its own performance
as well as evaluation of working of its committees shall be carried out by the board;
(v) On the basis of performance evaluation, it shall be determined by the Nomination
and Remuneration Committee and the Board whether to extend or continue the term of
appointment of ID subject to all other applicable compliances.
SUBSIDIARIES, ASSOCIATES AND JOINT VENTURE COMPANIES:
The Company has no subsidiaries, Joint Venture or associate company during the period
under review within the meaning of Section 2(6) of the Companies Act, 2013.
The Company continues to be subsidiary of Inimitable Capital Finance Private Limited.
PARTICULARS OF EMPLOYEES:
The information required under section on 197 of the Act read with rule 5(1) of the
Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are mentioned
as per "Annexure -4".
THE CHANGE IN NATURE OF BUSINESS:
The Company continues to carry out the same activities and during the period under
review there is no change in the nature of business.
DISCLOSURE ABOUT RECEIPT OF ANY COMMISSION BY THE MANAGING DIRECTOR / WHOLE-TIME
DIRECTOR FROM A COMPANY:
The Company has not paid any commission to the Managing Director / Whole-Time Director
against any services during the period under review.
PUBLIC DEPOSITS:
The Company is Non - deposit taking Non-Banking Financial Company registered with
Reserve Bank of India and is prohibited from accepting public deposits and therefore the
Company has not accepted any deposits from public during the year under review and there
was no public deposit outstanding as on March 31, 2023.
CAPITAL STRUCTURE:
During the year under review there was no change in the capital structure of the
Company.
STATUTORY COMPLIANCE:
The Company has complied with Ind AS as prescribed under section 133 of the Companies
Act, 2013. The Company has also complied with the directions issued by RBI from time to
time.
COMPLIANCE WITH SECRETARIAL STANDARDS:
The Company has devised proper systems to ensure compliance with the provisions of all
applicable Secretarial Standards issued by the Institute of Company Secretaries of India
and that such systems are adequate and operating effectively.
MATERIAL ORDER PASSED BY REGULATORS / COURTS / TRIBUNALS:
There was no material order passed by Regulators / Courts / Tribunals during the year
under review impacting the going concern status and company's operations in future.
ADEQUACY OF INTERNAL FINANCIAL CONTROL:
Internal Financial Control remains an important component to foster confidence in a
company's financial reporting, and ultimately, streamlining the process to adopt best
practices. In pursuance to provisions of Section 134(5)(e) of the Companies Act, 2013 read
with Rule 8(5)(viii) of Companies (Accounts) Rules, 2014 your Company has in place
adequate internal controls with reference to financial statements and are operating
effectively. The Company has devised proper system of internal financial control which is
commensurate with size and nature of Business.
DIRECTORS AND KEY MANAGERIAL PERSONNEL (KMP):
A) Changes in Directors:
During the year under review, Mr. Arshad Riyaz Ahmed Shaikh has been appointed as the
Non-Executive Independent Director of the company w.e.f. 29th August, 2023.
Mr. Sachin Khanolkar was resigned from the post of Non-Executive Independent Director
with effect from 29th August, 2023.
Mr. George Sundersingh John Davis was appointed as an Additional Director with effect
from 20th March, 2024.
The Designation of Mr. Mayur Nagindas Doshi was changed from Non-Executive
Non-Independent Director to Executive Director with effect from 20th March, 2024.
B) Key Managerial Personnel:
During the year under review:
Mr. Mayur Nagindas Doshi was appointed as Chief Financial Officer with effect from 20th
March, 2024.
REPORTS ON MANAGEMENT DISCUSSION ANALYSIS AND CORPORATE GOVERNANCE:
As required under the SEBI (Listing Obligations and Disclosures Requirements)
Regulations, 2015, Management Discussion and Analysis Report and Corporate Governance
Report are forming part to this Report annexed as Annexure - 5" and "Annexure -
6".
SEXUAL HARASSMENT OF WOMEN AT WORKPLACE:
Your Company is committed for creating and maintaining a secure work environment where
its employees can work in an atmosphere free of harassment, exploitation and intimidation.
To foster a positive workplace environment, free from harassment of any nature to empower
women and protect them against sexual harassment, and as per the requirement of the Sexual
Harassment of Women at Workplace (Prevention, Prohibition & Redressal) Act, 2013
("POSH Act") and Rules made thereunder, we have institutionalized the
Anti-Sexual Harassment Initiative (ASHI) framework, through which we address complaints of
sexual harassment at the all workplaces of the Company. Our policy assures discretion and
guarantees non-retaliation to complainants. We follow a gender-neutral approach in
handling complaints of sexual harassment and we are compliant with the law of the land
where we operate.
We have also constituted a Special Complaints Committee to consider and address sexual
harassment complaints in accordance with the Sexual Harassment of Women at Workplace
(Prevention, Prohibition and Redressal) Act, 2013. During the year under review, there
were no incidences of sexual harassment reported.
DISCLOSURES PURSUANT TO RBI MASTER DIRECTION:
Pursuant to additional disclosure requirements as per RBI Circular No. RBI/2022-23/26
DOR.ACC.REC.No.20/21.04.018/2022-23, is disclosed in the note no. 42 read with 43 of
financial statements.
ACKNOWLEDGEMENT:
The Board of Directors wishes to express their heartfelt gratitude to the Reserve Bank
of India and other regulatory authorities for their invaluable guidance and cooperation.
Their support has been instrumental in enabling the Company to operate effectively within
the regulatory framework. The Board also extends its sincere appreciation to all
individuals who have placed their trust in the Company and its management. It is with deep
gratitude that we acknowledge the loyalty and confidence of over one million customers
across all the areas where we operate, as they have provided us with the opportunity to
serve them.
For and on behalf of the Board of Directors of
FRONTIER CAPITAL LIMITED
| Sd/- |
Sd/- |
| Hemendranath Choudhary |
Mayur Doshi |
| Director |
Chairman & Director |
| DIN:06641774 |
DIN:08351413 |
|