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Frontier Capital Ltd.

BSE: 508980 Sector: Financials
NSE: N.A. ISIN Code: INE977E01013
BSE 05:30 | 01 Jan Frontier Capital Ltd
NSE 05:30 | 01 Jan Frontier Capital Ltd

Frontier Capital Ltd. (FRONTIERCAPITAL) - Director Report

Company director report


The Members

Frontier Capital Limited

Your Directors have pleasure in presenting the Thirty Seventh Director's Report of theCompany and the

Audited Financial Statements for the Financial Year (FY) ended 31st March2021.


A. Financial Results:

Particulars 31st March 2021 31st March 2020
Income 3086826 8338630
Less: Expenses 11569500 9539592
Less: Exceptional Items - 61603169
Profit / (Loss) before tax -8482674 -62804131
Less: Tax expenses
(Including deferred tax and tax for - -
earlier years)
Profit / (loss) After Taxation -8482674 -62804131
Less: Proposed Dividend - -
Less: Corporate Dividend Tax - -
Less: Transfer to Statutory Reserve - -
Add: Balance Brought Forward from -248137026 -185332895
Last Year
Balance Carried Forward to Balance -256619805 -248137026

B. Operations

During the period under review the Company has earned a total income of Rs.3086826/- as against Rs. 8338630/- in the previous year. The loss before the tax wasRs. 8482674 as against the loss of Rs. 62804131in previous year. The loss after taxwas Rs. 8482674 as against the loss of Rs. 62804131in previous year.

C. Business review and outlook

The details of the Company's affairs including its operations are more specificallygiven in the

Management Discussion and Analysis Report which is given in this Annual Report.

Outlook for the coming financial year continues to remain uncertain with the COVID-19situation evolving each day. Apart from agriculture and related activities most othersectors of the economy have been adversely impacted by the pandemic and are expected toshow de-growth.

D. Dividend

The company has formulated a dividend distribution policy in compliance with regulation43A of SEBI (Listing Obligation and Disclosure Requirement) Regulations 2015 (ListingRegulations).

The Board of Directors of your company after considering holistically the relevantcircumstances and keeping in view the company's dividend distribution policy and lossincurred has decided that it would be prudent not to recommend any Dividend for the yearunder review.

E. Transfer to Reserves

The Company did not transfer any amount to reserves in view of the losses incurred bythe Company during the year under review.

F. Material changes and commitment if any affecting the financial position of thecompany occurred between the end of the financial year to which this financial statementrelate and the date of the report

No material changes and commitments affecting the financial position of the Companyduring the period from the end of the financial year on 31st March 2021 to thedate of this Report. There has been no change in the nature of business of the Company.

2. Share Capital

The Company has converted Rs. 140000000 of CCPS into 14000000 Equity Shares ofRs. 10 each and issued 2500000 Equity Shares of Rs. 10 each to Inimitable CapitalFinance Private Limited issued any shares in the year 2019-20. Hence as on 31stMarch 2021 the paid up share capital of the company is Rs. 167621630 divided into16762163 Equity shares of Rs. 10/- each. No shares were issued and allotted in the FY2020-21

3. Management

A. Directors and Key Managerial Personnel:

Pursuant to the provisions of Section 152 of the Companies Act 2013 read with theCompanies (Management and Administration) Rules 2014 and the Articles of Association ofthe Company Ms. Usha Iyengar is entitled to retire by rotation at the ensuing AnnualGeneral Meeting (AGM) and being eligible has offered himself for re-appointment.

Pursuant to Regulation 36(3) of the SEBI (Listing Obligations & DisclosureRequirements) Regulations 2015 (hereinafter referred to as ‘Listing Regulations')and Secretarial Standards on

General Meeting (SS-2) issued by the Institute of Company Secretaries of India (ICSI)brief resume of the Director proposed to be re-appointed in the ensuing Annual GeneralMeeting is annexed in Notice of 37th Annual General Meeting of the Company.

Following is the list of Directors and KMPs as on 31st March 2021. There isno change in the same till the date of Annual Report

Name Begin date DIN/PAN Designation
HEMENDRANATH RAJENDRANATH CHOUDHARY 21/04/2016 06641774 Whole Time Director
USHA SUNDAR IYENGAR 01/04/2015 03447551 Non Executive Woman Director
ASHOK KATRA 15/03/2017 07799527 Independent Director
ANIKET NARESH PRABHU 31/08/2018 BPYPP3319B Company Secretary and Chief Financial Officer

B. Declaration by Independent Director:

All the Independent Directors have given declaration as required under the provisionsof section 149(7) of the Companies Act 2013 that they meet the criteria of independenceas laid down under Section 149(6) of the Companies Act 2013 and Regulations 16 of theSEBI (Listing Obligations and Disclosure Requirements) Regulations 2015.

C. Number of Board Meetings:

During the year under review 4 Board Meetings were convened and held.

Name of the Director Director Identification Number Category No. of Board Meetings attended during the year Attendanc e at the last AGM
Mrs. Usha Iyengar 03447551 Non Executive Women Director 4 Yes
Mr. H. N. Choudhary 06641774 Whole Time Director 4 Yes
Mr. Ashok Katra 07799527 Independent Director 4 Yes

D. Audit Committee:

i. The Audit Committee functions according to its charter defines its compositionauthority responsibility and reporting functions in accordance with the Act listingrequirements and the regulations applicable to the Company and is reviewed from time totime.

As on 31st March 2021 the Audit Committee comprised of three Directorsviz. Mr. Ashok Katra (chairman) Mr. H. N. Choudhary and Ms. Usha Iyenger. All of them arefinancially literate and have relevant finance and/or audit exposure.

ii. During the period under review 4 Audit Committee meetings were held.

iii. Each Board Meeting which considers financial results is preceded by meeting ofAudit

Committee Members along with Auditors.

Composition of the Audit Committee and attendance at its meetings are as follows:

Composition Meetings Attended
Mr. Ashok Katra (Chairman) 4
Mrs. Usha Iyenger 4
Mr. H.N. Choudhary 4

E. Company's Policy Relating to Directors Appointment And Remuneration

Pursuant to the provisions of Section 178 of the Companies Act 2013 the Board frameda Policy relating to the selection and appointment of Directors Key Managerial PersonnelSenior Management and their remuneration. The Policy includes criteria for determiningqualifications positive attributes and independence of a director and other matters. Thesame is attached herewith and marked as Annexure 3.

F. Particulars of Employees

Disclosure with respect to the ratio of remuneration of each Directors to the medianemployees' remuneration as required under Section 197 of the Companies Act 2013 read withRule 5(1) of Companies (Appointment and Remuneration of Managerial Personnel) Rules 2014has been appended as Annexure 4 to this Report.

During the year under review no employee was in receipt of remuneration exceeding thelimits as prescribed under provisions of Section 197 of the Companies Act 2013 read withRule 5(2) and 5(3) of Companies (Appointment and Remuneration of Managerial Personnel)Rules 2014.

In terms of Section 136 of the Act the reports and accounts are being sent to theshareholders and others entitled thereto excluding the said information which will bemade available for inspection by the shareholders at the Registered Office of the companyduring business hours on any working days of the Company up to the date of the ensuingAnnual General Meeting. If any shareholder is interested in inspecting the same suchshareholders may write to the Company Secretary in advance

G. Board Evaluation:

Pursuant to the provisions of Sub Section (3) Section 134 of the Companies Act 2013the Board has carried out evaluation of its own performance the directors individually aswell as the working of its Audit Committee. The Board has devised questionnaire toevaluate the performance of each directors. Such questions are prepared considering thebusiness of the Company and the expectations that the Board has from each of theDirectors. The evaluation framework for assessing the performance of Directors comprisesof the following key areas:

Attendance of Board Meetings and Board Committee Meetings; Quality of contribution toBoard deliberations;

Strategic perspectives or inputs regarding future growth of Company and itsperformance; Providing perspectives and feedback going beyond information provided by themanagement.

H. Remuneration Structure for Board and Senior Management:

Composition of the Board of Directors of the Company reflects in-depth understanding ofthe Company including its strategies operations financial condition and compliancerequirements.

The remuneration is fixed considering various parameters such as qualificationexpertise experience prevailing remuneration in the industry and financial position ofthe Company.

The Independent Directors and Woman Director do not draw any remuneration from theCompany except sitting fees of Rs. 20000/- for each meeting attended by them during thefinancial year 2019-20.

There is no increase in the remuneration of Whole-time Director from FY 2020-21.

I. Directors' Responsibility Statement:

The board of directors have instituted / put in place a framework of internal financialcontrols and compliance systems which is reviewed by the management and the relevantboard committees including the audit committee and independently reviewed by theinternal statutory and secretarial auditors.

Pursuant to section 134(5) of the Companies Act 2013 the board of directors confirmthat:

in the preparation of the annual accounts for the financial year ended 31stMarch 2021 the applicable accounting standards had been followed along with properexplanation relating to material departures;

your directors had selected such accounting policies and applied them consistently andmade judgments and estimates that are reasonable and prudent so as to give a true and fairview of the state of affairs of the Company as at 31st March 2021 of theCompany for that period;

your directors had taken proper and sufficient care for the maintenance of adequateaccounting records in accordance with the provisions of the Companies Act 2013 forsafeguarding the assets of the company and for preventing and detecting fraud and otherirregularities;

your directors had prepared the annual accounts on a going concern basis;

your directors in the case of a listed company had laid down internal financialcontrols to be followed by the company and that such internal financial controls areadequate and were opening effectively; and

your directors had devised proper systems to ensure compliance with the provisions ofall applicable laws and that such systems were adequate and operating effectively.

J. Internal Control Systems and Their Adequacy

Pursuant to Rule (8)(5) of the Companies (Accounts) Rules 2014 the Company has aninternal control system commensurate with the size scale and complexity of itsoperations. The

Company monitors and evaluates the efficacy and adequacy of internal control system inplace its compliance with operating systems accounting procedures and policies.

During the year under review no reportable material weakness in the operation wasobserved. Regular audit and review processes ensure that such systems are reinforced on anongoing basis.

4. Holding Subsidiaries Joint Ventures and Associate Companies

The Company has no subsidiaries Joint Venture or associate company during the periodunder 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.

5. Deposits:

Your company has not accepted any Deposits during the financial year under reviewfalling under provisions of Section 73 and 76 of the Companies Act 2013 read withCompanies (Acceptance of Deposits) Rules 2014.

6. Particulars of loans Guarantees or Investments under Section 186 of theCompanies Act 2013

Being a Non-Banking Finance Company the provision of Section 186 of Companies Act2013 are not applicable to the Company.

7. Particulars of contracts or arrangements with related parties referred to inSection 188(1) of the Companies Act 2013:

All Contracts/ Arrangements/ transactions entered by the Company during the FinancialYear with related parties were on arm's length basis in ordinary course of business andwere in the compliance with the applicable provisions of the Act and the ListingAgreement.

There are no significant related party transactions made by the Company with PromotersDirectors Key Managerial personnel or other designated persons as defined under Section188 of the Companies Act 2013.

Accordingly there are no material transactions that are required to be reported in FormAOC 2 and as such do not form part of the report.

The Company has made adequate disclosures regarding related party transactionscontingent liabilities and significant accounting policy in the Notes to Accounts as anintegral part of the Balance Sheet and Statement of Profit & Loss.

8. Corporate Social Responsibility Report (CSR):

The provisions relating to Corporate Social Responsibility under Section 135 of theCompanies Act 2013 and rules made thereunder are not applicable to the Company.Therefore the Company has not developed and implemented any policy on Corporate SocialResponsibility initiatives.

9. Particulars of Conservation of energy technology absorption foreignexchange earnings and outgo:

Considering the nature of business activities of the Company your Directors havenothing to report with respect to conservation of energy and technology absorption.

During the year under review there were neither any foreign exchange earnings noroutgo.

10. Business Risk Management:

The Company has constituted a Risk Management Policy which has been entrusted withresponsibility to Board in overseeing the Company's Risk Management process and controlsrisk tolerance and capital liquidity and funding and also setting the strategic plans andobjections for the risk management and review of risk management of the company and alsoreview the company's risk appetite and strategy relating to key risks including creditrisk liquidity and funding risk market risk product risk and reputational risk as wellas guidelines policies and processes for monitoring and mitigating such risks.

The Board takes responsibility for the overall process of the risk management in theorganization. The business risk is managed through cross functional involvement andcommunication across businesses.

11. Vigil Mechanism:

The Vigil Mechanism/Whistle Blower Policy has been put in place in accordance withSection 177 of the Companies Act 2013 for the Directors and Employees to report theirgenuine concerns about unethical behaviour actual or suspected fraud or violation of theCompany's Code of Conduct. The mechanism provides for adequate safeguards against thevictimization of Director(s) and Employee(s) who avail of the mechanism. Directors andEmployees may make protected disclosure under the policy to the Compliance Committeeconstituted by the Company to administer the internal code of business conduct. Inexceptional cases Directors and Employees have direct access to the Chairman of the AuditCommittee. Further no personnel have been denied access to the Compliance Committee/Chairman of the Audit Committee as the case may be.

No complaints were received under whistle blower mechanism during the year underreview.

The Company has adopted a Whistle Blower Mechanism Policy establishing vigil mechanismto provide a formal mechanism to the Directors and employees to report their concernsabout unethical behavior actual or suspected fraud or violation of the company's code ofconduct or ethics policy.

The policy provides for adequate safeguard against victimization of employees who availthe mechanism. No employee or directors of the Company has been denied access to the AuditCommittee.

12. Details of significant and material orders passed by the regulators or courts ortribunals impacting the going concern status and company's operations in future:

During the period under review no significant or material order was passed by anyregulatory authority or court or tribunals which may have bearing on going concernstatus or on operations of the company in future.

13. Auditors:

A. Appointment of Auditors:

Pursuant to the provision of Section 139(2) of the Act and the Rules framed thereunderM/s A.C Bhuteria Chartered Accountants Kolkata (having FRN: 303105E) was appointed asthe Statutory Auditors of the Company for a period of 5 years to hold office from theconclusion of the 36st Annual General Meeting held till the conclusion of the41st Annual General Meeting to be held for the year ending 31stMarch 2026.

The Statutory Auditors have given a confirmation to the effect that they are eligibleto continue with their appointment and that they have not been disqualified in any mannerfrom continuing as the Statutory Auditors.

B. Remarks or qualifications by Statutory Auditors:

There are no negative remarks or qualification from Statutory Auditors.

C. Secretarial Auditors:

Pursuant to the provisions of Section 204 of the Act and The Companies (Appointment andRemuneration of Managerial Personnel) Rules 2014 the Company has appointed AVS &Executives partnership firm Company Secretaries to undertake the Secretarial Audit ofthe company. The Report of the Secretarial Audit is annexed herewith as Annexure 2.

D. Remarks or qualifications by Secretarial Auditors and comments from the Board:

i. Structured Digital Database as required under Regulation 3(6) of SEBI(PIT) 2015 not maintained by the Company as on March 31 2021 and Intimation of TradingWindow Closure not given to Designated Persons/Connected Persons for declaration offinancial results for all the quarters during the F.Y. 2020-21 as well as Trading WindowClosure intimation to BSE Limited for the financial results for the quarter endedSeptember 30 2020 and December 31 2020 were not furnished Company is working or intalks with the RTA and other IT platforms to install Structured Digital Database forgiving all the intimations required and for complying under SEBI (PIT) 2015 shall bemade.

ii. Internal Auditor has not been appointed by the Company under section 138 of the

Companies Act 2013 for the F.Y. 2020-21 Company is looking for a suitablecandidature.

iii. Forms for some Board Resolutions passed during the F.Y. 2020-21 have not beenfiled with the ROC Some of the RoC forms was not filed inadvertently

iv. Website of the Company is not functional and requisites policies as per applicableprovisions of the Companies Act 2013 SEBI (LODR) Regulations 2015 and SEBI (PIT)Regulations 2015 not available in the records of the Company - Company is working orin talks with IT professional / platforms to resume the website of the Company. Oncewebsite is working all the policies shall be uploaded in the due course.

v. The Company has made delay in submission of its disclosure of related partytransactions on consolidated basis for the half year ended March 31 2020 and September30 2020 to BSE Limited Company inadvertently failed to disclose the same with thestock exchange withing required time frame. Clarification on the same were duly submittedto the exchange.


vi. The Company has entered in to related party transactions with its Related Partywhich was Material in nature without approval of shareholders as required under Regulation23 of SEBI (LODR) Regulations 2015 Company had obtained the Shareholder approval forincreasing borrowing limits upto Rs. 500 crores in the General Meeting held on FY 2019-20.After making allotment of 16500000 equity shares in August 2019 Corporate Governanceregulation under SEBI (LODR) 2018 were applicable to the Company and hence shareholderapproval from borrowing from related parties were required in FY 2020-21. Same is proposedin the Notice of the 37th Annual General Meeting.

vii. Composition of Board Audit Committee Nomination & Remuneration Committeeand Stakeholder Relationship Committee is not in accordance with Companies Act 2013 andSEBI (LODR) Regulations 2015 Due to COVID 19 pandemics and lockdowns Company is notable to find right candidature to appoint as an Independent Director hence Composition innot in accordance with the regulations.

viii. Newspaper Publication with respect to intimation of Board Meeting to be heldfor financial results for quarter ended September 30 2020 has been made with delay.Further Newspaper Publication for Intimation of Board Meeting as well as Financialresults for all the quarters of F.Y. 2020-21 made not as per Regulation 47 of SEBI (LODR)Regulations 2015 Due to lockdowns protocols from governments intimations weredelayed.

ix. Submission of Reconciliation of Share Capital Audit Report for quarter endedMarch

31 2020 and December 31 2020 to BSE Limited made in delay Report submitted withdelay of 1 day due to non-avoidable circumstances.

x. Disclosure under Regulation 74(5) of SEBI (Depositories Participant) Regulation

2018 for the quarter ended June 30 2020 has not been submitted Company


Missed the same inadvertently

xi. Annual Listing Fees for F.Y. 2020-21 has not been paid by the Company to BSE

Limited Due to non-availability of the funds Company failed to pay listing fees.

xii. Due to non-availability of documents/details related to transfer of unclaimedfinal dividend declared in AGM held on 20th September 2013 along with itsshares to IEPF Authority we are not able to comment on status relevant compliances of thesame


Due to COVID 19 pandemics lockdowns and non-availability of signatories Company wasnot able to gather required information in this matter and working on the same to complywith the applicable regulations.

E. Internal Audit:

Pursuant to provision of section 138 of the Companies Act 2013 & Rule 13 ofCompanies (Accounts) Rules 2014 management is in search for the right candidature toappoint as an internal auditor for Financial Year 2020-21.

14. Secretarial Standards:

Company complies with all applicable mandatory secretarial standards issued byInstitute of Company Secretaries of India.

15. Extract of the Annual Return:

The extracts of Annual Return pursuant to the provisions of Section 92 read with Rule12 of the Companies (Management and administration) Rules 2014 is furnished in (Annexure1 MGT-9) and is attached to this Report.

16. Other Compliance:

A. Reserve Bank of India:

The Company is registered with RBI as an Asset Financing Non-Deposit Accepting NBFC.The Company has complied with and continues to comply with the applicable Regulations andDirections of the RBI and it does not carry on any activities other than thosespecifically permitted by the RBI.

B. Accounts and Accounting Standards:

The Company adheres to the Accounting Standards as prescribed under section 133 of theCompanies Act 2013 and Rule 7 of the Companies (Accounts) Rules 2014 in the preparationof its financial statements and also to the guidelines prescribed by the RBI.

C. Stock Exchanges Compliance of Listing Agreements/ SEBI (Listing Obligations andDisclosure Requirements) Regulations 2015:

The Company's shares are listed on the BSE Ltd. The Company has paid the requisitelisting fees to the Stock Exchange. Further the Company has demat connectivity with boththe Depositories NSDL and CDSL and paid Annual Fees to both the Depositories.

D. Green Initiative:

Section 136 of the Companies Act 2013 and the Rules made there under allow the Companyto send its financial statements by electronic mode to such members whose shareholding isin dematerialized format and whose email addresses are registered with Depository forcommunication purposes. As a responsible corporate citizen the Company proposes to effectelectronic delivery of the Annual Report of the Company in lieu of the paper form to theMembers who have registered their email IDs with the Depositories. However as a matter ofpractice a physical copy of the Annual Report has also been sent to the members at theiraddress registered with the Company and the Depository Participants.

A copy of this Annual Report along with the Annual Report of each of the Company for FY2020-21 will be placed on the website of the Company.

E. Prevention of Sexual harassment:

The company has zero tolerance for sexual harassment at work place and has adopted apolicy on prevention prohibition and redressal of sexual harassment at workplace in linewith the provisions of the Sexual harassment of women at workplace (preventionprohibition ad Redressal) Act 2013 and the rules thereunder for prevention and redressalof complaints of sexual harassment at workplace. The Company is committed to provide equalopportunities to their race caste sex religion color nationality disability etc.All women associates

(permanent temporary contractual and trainees) as well as women visiting thecompany's office premises or women service providers are covered under this policy. Allare treated with dignity with a view to maintain a work environment free of sexualharassment whether physical verbal or psychological.

During Fiscal Year 2021 the Company has not received any complaint on sexualharassment.

17. Management Discussion and Analysis Report (MDAR):

Pursuant to regulation 34(2) of the Listing Regulations Management Discussion andAnalysis Report is attached in the Annexure 5

18. Corporate Governance Report:

A report on corporate governance as per the Listing Regulations is attached and formspart of this report Annexure 6. The report also contains the details as required to beprovided on the composition and category of directors number of meetings of the boardcomposition of the various committees annual board evaluation remuneration policycriteria for board nomination and senior management appointment whistle blowerpolicy/vigil mechanism disclosure of relationships between directors inter-se state ofcompany's affairs etc.

19. Acknowledgement:

The Directors would like to place on record their gratitude for the valuable guidanceand support received from the Reserve Bank of India Securities and Exchange Board ofIndia Bombay Stock Exchange Limited and other Government and Regulatory Authorities andconvey their appreciation to all the stakeholders customers bankers lenders vendorsand all business associated for their valuable and continuous support and encouragementtowards the conduct of the efficient operations of the company.

For and on behalf of the Board of Directors


Hemendranath Choudhary

Usha Iyengar

Whole - Time Director



DIN: 03447551

Place: Mumbai

Date: 06.09.2021