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Accounting Policies of Frontier Capital Ltd. Company

Mar 31, 2014

The Financial statements have been prepared on accrual basis and in accordance w''ft applicable accounting standards. A sun may of he important accounting policies, below.

1.1 Basis of Accounting:

Recognition and provisioning for Non-performing Assets as prescribed in the directions issued by the Reserve Bank of India in term sot the Non- Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007.

1.2 Investments:

Long term investments am stated at cost Incidental expenses incurred in acquiring fie irt/estments are added to the cost Decline in carrying amount ofrnvesenents. if any, oher than of temporary nature is provided for in the Statement of Profit and Loss.

1.3 Fixed Assets:

Fixed Assets are recorded at cost inclusive of all incidental cost of acquisition anatoiler incidental costs.

14 Depreciation /Am orSsafon:

Goodwill is amortised over the period of its estimateduseful Me of 2.5 years. Depredation mother Sxedassets isprovided on mien Dom Value Method at the rates prescribed under ire Schedule XIV of tie Companies Act, me on pro rata basis from the date of addition/upto he date of deletion.

1 .5 Capitai-WoMn Progress:

The expenditure m correction M the assets under acquisition /construction are treated as CapM Wbik-ln-Ptogres$ til the date of capitalisation thereof.

i.6 Receivables under Financing Act-/ites

The receivables under trancing actrMes includes Stock on Hire (i.e. toU receivables comprising of total value of hire purchase insialmerts falling due after end of the accounting year net of Finance charges receivable on balance instalments), Trade Receivables (hire purchase instalments due), Loans given. Bills Discounted (net of unmatured discount charges). The receivables under financing activities we further classified into non-current portion and current potion based on tenure thereof.

1.7 Revenue Recognition:

i) tn rescec; o'' F, imce Chafes on Hire Purchase agreements. Income is accounted by applying implicit rate of return in he transacted on the declining balance cftheamounttinancedformper.od of trie agreement

ii) Interest and discounting charges income are recognised on tme accrual basis.

ill) No incom e is recognised in resoeel of non-performing assets as specified in the directions issued by the Reserve Bank of India in terms of the Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudent al Norms (Reserve Bank) Directions, 2007.

1.8 Taxation:

Tne provision for current tax, if any, is computed in accordance with the relevant tax regulations. Deferred Tax is recognised on timing difference bemen accounting and taxable income for the yea- by aopiying applicable tax rates as per Accounting Standard-22 on ''Accounting for Taxes on Income: Deferred Tax Assets is recognised i«wr mem is reasonable certainty that future taxable income mil be available against Mich such Deferred Tax Assets can be realised.

Provision and Contingent liabilities

Provision are recognised in the accounts for present probable obSgafons arising out of past events that require outflow dresources, the amount of can be reliably estimated,

Contingent are disclosed in respect of possible obligations hatarisefrom pastevents but their existence is confirmed by meoccurrence or non occurrence of one or more uncertain future s not wholly within the conM of the company, unless likehood an outflow of resources is remote Contigent assests are recognized in the accounts unless there is virtual certiny as to its realisation. resources accounts.


Mar 31, 2013

The Financial statements have been prepared on accrual basis and in accordance with applicable accounting standards. A summary of the important accounting policies, which have been applied, is set out below:

1.1 Basis of Accounting: The financial statements are prepared in accordance with the historical cost convention. Further the Company follows prudential norms for Income Recognition and provisioning for Non-performing Assets as prescribed in the directions issued by the Reserve Bank of India in terms of the Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007.

1.2 Investments: Long term investments are stated at cost. Incidental expenses incurred in acquiring the investments are added to the cost. Decline in carrying amount of investments, if any, other than of temporary nature is provided for in the Statement of Profit and Loss.

1.3 Fixed Assets: Fixed Assets are recorded at cost inclusive of all incidental cost of acquisition and other incidental costs.

1.4 Depreciation / Amortisation: Goodwill is amortised over the period of its estimated useful life of 2.5 years. Depreciation on other fixed assets is provided on Written Down Value Method at the rates prescribed under the Schedule XIV of the Companies Act, 1956 on pro rata basis from the date of addition / upto the date of deletion.

1.5 Stock on Hire: Stock on hire is reflected at total receivables comprising of total value of hire purchase instalments falling due after end of the accounting year net of Finance charges receivable on balance instalments.

1.6 Revenue Recognition:

i) In respect of Finance Charges on Hire Purchase agreements, Income is accounted by applying implicit rate of return in the transaction on the declining balance of the amount financed for the period of the agreement. ii) Interest and discounting charges income are recognised on time accrual basis.

iii) No income is recognised in respect of non-performing assets as specified in the directions issued by the Reserve Bank of India in terms of the Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007.

1.7 Taxation:

The provision for current tax, if any, is computed in accordance with the relevant tax regulations. Deferred Tax is recognised on timing difference between accounting and taxable income for the year by applying applicable tax rates as per Accounting Standard-22 on "Accounting for Taxes on Income". Deferred Tax Assets is recognised wherever there is reasonable certainty that future taxable income will be available against which such Deferred Tax Assets can be realised.

1.8 Provisions and Contingent Liabilities:

Provisions are recognised in the accounts for present probable obligations arising out of past events that require outflow of resources, the amount of which can be reliably estimated.

Contingent liabilities are disclosed in respect of possible obligations that arise from past events but their existence is confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the company, unless likelihood of an outflow of resources is remote. Contingent assets are not recognised in the accounts, unless there is virtual certainty as to its realisation.


Mar 31, 2012

The Financial statements have been prepared on accrual basis and in accordance with applicable accounting standards. A summery of the important accounting policies, which have been applied is set out below:

1.1. Basis of Accounting:

The financial statements are prepared in accordance with the historical cost convention,

1.2 investments:

Long term investments are stated at cost. Incidental expenses incurred in acquiring the Investments are added to the cost, Decline in carrying amount of investments, if any, other than of temporary nature is provided for in the Statement of Profit and Loss.

1.3 Fixed Assets:

Fixed Assets are recorded at cost inclusive of all incidental cost of acquisition and other Incidental costs.

1.4 Depreciation/Amortisation:

Goodwill is amortised over the period of its estimated useful life of 2.5 years. Depreciation on other fixed assets is provided on Written Down Value Method at the rates prescribed under the Schedule XIV of the Companies Act, 1953 on pro rata basis from the date of addition/upto the date of deletion.

1.5 Stock on Hire

Stock on hire is reflected at total receivables comprising of total value of hire purchase instalments falling due after end of the accounting year net of Finance charges receivable on balance installments.

i) In respect of Finance Charges on Hire Purchase agreements, Income is accounted by applying implicit rate of return in the transaction on the declining balance of the amount financed for the period of the agreement. No Income is recognised in respect of non-performing assets as specified in the directions issued by the Reserve Bank of India in terms of the Non- Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007. ii) Income Interest is recognised on time accrual basis.

1.7 Taxation

The provision for current tax, If any, is computed in accordance with the relevant tax regulations. Deferred Tax is recognised on timing difference between accounting and taxable income for the year by applying applicable tax rates as per Accounting Standard -22 on "Accounting for Taxes on Income". Deferred Tax Assets is recognised wherever there is reasonable certainty that future taxable income will be available against which such Deferred Tax Assets can be realised.

1.8 Provisions and Contingent Liabilities:

Provisions are recognised In the accounts for present probable obligations arising out of past events that require outflow of resources, the amount of which can be reliably estimated.

Contingent liabilities are disclosed in respect of possible obligations that arise from past events but their existence is confirmed by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the company, unless likelihood of an outflow of resources is remote. Contingent assets are not recognised In the accounts, unless there Is virtual certainty as to its realisation,


Mar 31, 2010

The financial statements are prepared under the historical cost convention, on an accrual basis and in accordance with the applicable accounting standards.

1.1) Fixed Assets :-

Fixed Assets are stated at cost, less accumulated depreciation. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

1.2) Depreciation :-

Depreciation on Fixed Assets is provided on Written Down Method at the rates and in the manner specified in the Schedule XIV of the Companies Act, 1956.

1.3) Investments :-

Long Term Investments are stated at cost.

1.4) Revenue Recognition:

Interest is recorded on time basis. Dividend income on investments is accounted for when the right to receive the payment is established.

1.5) Taxation :-

The provision for Current Tax is determined on the basis of taxable income for the current accounting year in accordance with the Income Tax Act, 1961.

The Deferred Tax is recognized, considering the prudence, on timing difference, that originate in one period and capable of reversal in subsequent period.

Deferred tax assets are recognized on Long Term Capital loss on the basis of reasonable certainty that such deferred tax asset can be realized against future taxable Long Term Capital Gain.

Deferred tax Liability recognized in earlier year on difference between Book depreciation and depreciation under Income Tax Act 1961 is reversed to the extent of realization.

1.6) Retirement Benefits :-

No Retirement benefit provisions made.

1.7) Segment Information :-

Since the company is dealing in only one segment, ie there is no segment reporting.


Mar 31, 2009

1.1) Fixed Assets:-

Fixed Assets are stated at cost, less accumulated depreciation. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

1.2) Depreciation :-

Depreciation on Fixed Assets is provided on Written Down Method at the rates and in the manner specified in the Schedule XIV of the Companies Act, 1956-

1.3) Investments :-

Long Term Investments are stated at cost.

1.4) Revenue Recognition :

Interest is recorded on lime basis. Dividend income on investments is accounted for when the right to receive the payment is established.

15) Taxation:-

The provision for Current Tax is determined on the basis of taxable income for the current accounting year in accordance with the Income Tax Act, 1961.

The Deferred Tax is recognized, considering the prudence, on timing difference, that originate in one period and capable of reversal in subsequent period.

Deferred tax assets are recognized on Long Term Capital loco on the basis of reasonable certainty that such deferred tax asset can be realized against future taxable Long Term Capital Gain.

Deferred lax Liability recognized in earlier year on difference between Book depreciation and depreciation under Income Tax Act 1961 is reversed to the extent of realization.

1.6) Retirement Benefits :-

No Retirement benefit provisions made.

1.7) Segment Information :-

Since the company is dealing financing, there is no segment reporting.

 
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