Home  »  Company  »  Frontline Securi  »  Quotes  »  Accounting Policy
Enter the first few characters of Company and click 'Go'

Accounting Policies of Frontline Securities Ltd. Company

Mar 31, 2015

A. Method of Accounting

The financial statements have been prepared and presented under the historical cost convention on accrual basis of accounting and accounting principles generally accepted in India and comply with the Accounting Standards prescribed in the Companies (Accounting Standards) Rules, 2006 issued by the Central Government in consultation with the National Advisory Committee on Accounting Standard and in accordance with the relevant provisions of the Companies Act, 2013 to the extent applicable.

b. Use of Estimates

The preparation of the financial statements in conformity with generally accepted accounting principles („GAAP') in India requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent liabilities on the date of the financial statements. Management believes that the estimates made in the preparation of financial statements are prudent and reasonable. Actual results could differ from those estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

c. Fixed Asset Tangible Assets

(i) Fixed asset are stated at cost including expenses incurred up to the date of their installation/commissioning as reduced by accumulated depreciation/ impairment provided in the accounts.

(ii) Capital work-in-progress is stated at cost.

Intangible Assets

(i) Cost incurred on intangible assets, resulting in future economic benefits are capitalized as intangible assets and amortized on a straight-line method beginning from the date of capitalization over a period of 7 years.

d. Depreciation

Depreciation on fixed assets is provided on depreciable value of assets using straight-line method on the basis of useful life specified in Part C of Schedule II to the Companies Act, 2013.

Depreciation on addition/deletion to the fixed assets is provided for the proportionate useful life of the fixed asset.

The net balance of cost and the provision of depreciation on the asset, whose useful life has expired as on 01.04.2014 as prescribed in Part 3 of Schedule II of the Companies Act, 2013 has been charged from Retained Earnings.

e. Valuation of stock of securities

Stock of securities is valued at lower of cost and market price. However, there is no stock on year ending.

f. Valuation of the Investments

The long term investments are valued at cost. However, if there is any decline in the value of investment, other than temporary, the carrying amount of investment is reduced for recognizing the decline in value for each investment.

g. Revenue Recognition

Profit or losses from dealing in securities reflects the net profit/loss on sale and purchase of securities.

Brokerage, interest and commission income is being recorded on accrual basis.

Dividend income is being recorded when the Company's right to receive the payment is established.

h. Provision for Current and Deferred Tax

Income Tax expenses are accrued in accordance with Accounting Standard-22, „Accounting for Taxes on Income', issued by the Institute of Chartered Accountants of India, which includes current taxes and deferred taxes. The deferred tax charge or credit is recognized, using subsequently enacted tax rates for timing differences between book and tax profits. Deferred tax assets arising on account of carry forward losses and unabsorbed depreciation are recognized only when there is virtual certainty of realization of such assets and shall be calculated and valued at each balance sheet date and carrying value of the same will be adjusted for recognizing the change in the value of such deferred tax asset and liability.

i. Provisions, Contingent Liabilities and Contingent Assets

A Provision is recognized when there is a present obligation as a result of amount of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. Disclosure for contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources.

No provision is recognized or disclosure for contingent liability is made as there is no possible obligation or a present obligation and the likelihood of outflow of resources is remote. Contingent Assets is neither recognized nor disclosed in the financial statements.

j. Government Grants

No government grants have been received by the company during the year.

k. Borrowing Cost

The company has not borrowed any funds during the year.

l. Employee Benefits

Gratuity Benefits are recognized as an expense in the profit & loss account for the year in which the employee has rendered services. The expenses are recognized at the present value of the amounts payable determined using actuarial valuation techniques. Actuarial gains and losses in respect of gratuity are charged to profit and loss account.

m. Impairment of Fixed Asset

Management periodically assesses using external and internal sources whether there is an indication that fixed assets of the company have suffered an impairment loss. Impairment loss, if any, is provided as per Accounting Standard (AS-28) on Impairment of Assets.

n. Segment Reporting

The company operates in one geographical segment, i.e. India and has identified two business segments i.e. Segment-I which is Consultancy Commission & Brokerage and Segment-II Investments in Bonds, Fixed Deposits & Loans & Advances. Segment Profit & Loss is measured on the basis of Operating Profit or Loss of each respective segment. Segment Assets and Liabilities have been apportioned similarly.

o. Leases

The company holds a leasehold land and the amount of lease rentals and interest cost on installment is added to the cost of the land. As Accounting Standard 19 "Leases" does not apply to lease rentals on Land, therefore the disclosure of the same is not made.

p. Earning Per Share

Basic earnings per equity share are being computed by dividing net profit after tax by the weighted average number of shares outstanding during the year as prescribed in Accounting Standard 20 prescribed in the Companies (Accounting Standard) Rules, 2006 issued by the Central Government in consultation with the National Advisory Committee on Accounting Standard.


Mar 31, 2014

1.1 Method of Accounting

The financial statements have been prepared and presented under the historical cost convention on accrual basis of accounting and accounting principals generally accepted in India and comply with the Accounting Standards prescribed in the Companies (Accounting Standard) Rules, 2006 issued by the Central Government in consultation with the National Advisory Committee on Accounting Standard and in accordance with the relevant provisions of the Companies Act, 1956, to the extent applicable.

1.2 Use of Estimates

The preparation of the financial statements in conformity with generally accepted accounting principals (''GAAP'') in India requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent liabilities on the date of the financial statements. Management believes that the estimates made in the preparation of financial statements are prudent and reasonable. Actual results could differ from those estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

1.3 Fixed Assets

Fixed Assets are accounted for in the books at cost including incidental charges.

1.4 Depreciation

(i) Depreciation is provided at the rates prescribed in schedule-XIV to the Companies Act, 1956 on straight-line method.

(ii) Depreciation on addition/deletion to the fixed assets is provided from/to the date of addition/deletion of fixed assets.

1.5 Valuation of the investments

The long-term investments are valued at cost. However, if there is any decline in the value of investment, other than temporary, the carrying amount of investment is reduced for recognising the decline in value for each such investment.

1.6 Valuation of stock of securities

Stock of securities has been valued at lower of cost and market price. However, the company has no inventory during the year or at the end of the year.

1.7 Revenue Recognition

Profit or losses from dealing in securities reflects the net profit / loss on sale and purchase of securities. Brokerage, interest and commission income is being recorded on accrual basis.

1.8 Translation of Foreign Currency

Transactions in foreign currency are recorded by applying the exchange rate at the date of transaction. Monetary items denominated in the foreign currency remaining unsettled at the end of the year, are translated at the closing rate prevailing on the date of balance sheet. Gain/loss arising out of fluctuation on realisation, payment or restatement, except those identifiable to the acquisition of fixed assets is charged/credited to profit & loss account.

1.9 Provision for Current and Deferred Tax

Income Tax expenses are accrued in accordance with Accounting Standard- 22, ''Accounting for taxes on income'', issued by the Institute of Chartered Accountants of India, which includes current taxes and deferred taxes. Deferred income tax reflects the impact of current year timing difference between taxable income and accounting income for the year and reversal of the timing difference of earlier years. Deferred tax assets are recognized only to the extent of future taxable income, which will be available with reasonable certainty. Such deferred tax asset and liability shall be calculated and valued at each balance sheet date and carrying value of the same will be adjusted for recognising the change in the value of such deferred tax assets and liability.

1.10 Miscellaneous Expenditure

Preliminary expenditure and Public Issue expenditure are written off over a period of ten years on pro-rata basis.

1.11 Provisions & Contingencies

The Company creates a provision when there is present obligation as a result of past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of obligation. A disclosure for a contingent liability is made when there is a possible obligation that probably will not require an outflow of resources or where a reliable estimate of obligation cannot be made.

1.12 Government Grants

(i) Capital Subsidy received from Government as contribution towards Capital Outlay for setting up the fixed assets is treated as Capital Grants which is recognized as Income in the Profit & Loss account over the period and in the proportion in which depreciation is charged.

(ii) Revenue Grants are recognized in Profit & Loss Account.

However no Government Grants have been received by the Company during the year.

1.13 Borrowing Cost

Borrowing cost attributable to the acquisition or construction of qualifying / eligible assets (as defined in AS - 16 issued by Companies Act) are capitalized as part of the cost of such assets. A qualifying / eligible asset is an asset that necessarily takes a substantial period of time to get ready for intended use. All other borrowing costs are recognised as an expense and are charged to revenue in the year in which they are incurred. However, the company has not borrowed any funds during the year.

1.14 Employee Benefits

Gratuity Benefits are recognized as an expense in the profit & loss account for the year in which the employee has rendered services. The Expense is recognized at the present value of the amounts payables determined using actuarial valuation techniques. Actuarial gains & losses in respect of Gratuity are charged to profit & loss account.

1.15 Impairment of Fixed Assets

Management periodically assesses using external and internal sources whether there is an indication that fixed assets of the company have suffered an impairment loss. Impairment loss, if any, is provided as per Accounting Standard (AS-28) on Impairment of Assets.

1.16 Segment Reporting

The Company operates in one geographical segment i.e. India & has identified two business segments i.e. Segment-I which is Consultancy, Commission & Brokerage & Segment - II Investments in Bonds, Fixed Deposits & Loans & Advances. Segment Profit or Loss is measured on the basis of Operating Profit or Loss of each respective segment. Segment Assets & Liabilities have been apportioned similarly.

1.17 Earning Per Share

Basic earnings per equity share are being computed by dividing net profit after tax by the weighted average number of equity shares outstanding during the year. The EPS for the F.Y. 2012-13 has been restated as per the provision of Accounting Standard- 20 prescribed in the Companies (Accounting Standard) Rules, 2006 issued by the Central Government in consultation with the National Advisory Committee on Accounting Standard.

1.18 Provisions, Contingent Liability & Contingent Asset

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.

The company has only one class of shares referred to as equity shares having a par value of Rs.10/-. Each holder of equity shares is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the company, the holders of Equity shares will be entitled to receive any of remaining assets of the company, after distribution of all preferential amounts. However, no such preferential amounts exist currently. The distribution will be in proportion to the number of equity shares held by the shareholders.

In terms of decision of the Board of Directors dated 14.10.2013 and in accordance with the provisions of the Companies Act, 1956 and the Securities and Exchange Board of India (Buy-back of Securities) Regulations, 1998, the Company offered to buy-back its equity shares of face value of ''10 each, up to a maximum amount of Rs. ''771.82'' lakhs at a maximum price of Rs. ''32.50'' per share through tender offer. The Company commenced the buy-back on 02.01.2014 and closed the same on 07.02.2014 and has bought back 23, 18,261 equity shares at an average price of Rs. ''32.50'' per share (excluding brokerage and other taxes), utilizing a sum of Rs. ''753.43'' lakhs. On account of buy-back of shares, the Company has created Capital Redemption Reserve towards the face value by way of appropriation against Profit & Loss Account. The amount paid towards buy-back of shares, in excess of the face value, has been appropriated out of Profit & Loss Account. In terms of the provisions of Section 77A of the Companies Act, 1956 and SEBI (Buy-back of Securities) Regulations, 1998, all the shares bought back have been extinguished.

After completion of the above buyback the public shareholding fell below 25% of the total shareholding of the company. In pursuance of the listing agreement the public shareholding should be 25% and above of the total shareholding of the company. To comply the same the promoters of the company Mr. Rakesh K Jain sold 3 lac shares & Mrs. Prerna Jain sold 1.25 lac shares through Offer For Sale (OFS) executed through Bombay Stock Exchange on 05.03.2014.

"There is no amount due for the payment to the Investor Education and Protection Fund under section 205C of the Companies Act, 1956 as at the year end in respect of Unpaid Dividend"

Investment of shares has been taken as long term investments as the intention of management at the time of purchase is to hold them as long term. However it may happen, in benefit of company some investments may be sold in short term. But the intention of management was to hold the investment as long term in general, hence the same has been taken as long term investments.

Notes:

a. Aggregate cost of unquoted investment is Rs. 1,228,310/- (Previous year Rs 1,228,310/-)

b. Aggregate cost of quoted investment is Rs. 51,763,967/- (previous year Rs 27,522,323/-)

c. Aggregate cost of mutual fund is Rs. 119,919,320/- (Previous year Rs. 157,698,699/-)

d. Market value of quoted Investment is Rs. 60,042,430 /-(Previous year Rs. 26,181,394/-)

e. Market value of Mutual Fund is Rs. 133,487,727/- (Previous Year Rs. 162,248,117/-)

f. No provision has been made for reduction in market value, if any, in any particular share or mutual fund as in the opinion of the management, the same are temporary in nature.


Mar 31, 2013

1.1 Method of Accounting

The financial statements have been prepared and presented under the historical cost convention on accrual basis of accounting and accounting principals generally accepted in India and comply with the Accounting Standards prescribed in the Companies (Accounting Standard) Rules, 2006 issued by the Central Government in consultation with the National Advisory Committee on Accounting Standard and in accordance with the relevant provisions of the Companies Act, 1956, to the extent applicable.

1.2 Use of Estimates

The preparation of the fnancial statements in conformity with generally accepted accounting principals (''GAAP'') in India requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent liabilities on the date of the fnancial statements. Management believes that the estimates made in the preparation of fnancial statements are prudent and reasonable. Actual results could differ from those estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

1.3 Fixed Assets

Fixed Assets are accounted for in the books at cost including incidental charges.

1.4 Depreciation

(i) Depreciation is provided at the rates prescribed in schedule-XIV to the Companies Act, 1956 on straight-line method.

(ii) Depreciation on addition/deletion to the fxed assets is provided from/to the date of addition/deletion of fxed assets.

1.5 Valuation of the investments

The long-term investments are valued at cost. However, if there is any decline in the value of investment, other than temporary, the carrying amount of investment is reduced for recognising the decline in value for each such investment.

1.6 Valuation of stock of securities

Stock of securities has been valued at lower of cost and market price. However, the company has no inventory during the year or at the end of the year.

1.7 Revenue Recognition

Proft or losses from dealing in securities refects the net proft / loss on sale and purchase of securities. Brokerage, interest and commission income is being recorded on accrual basis.

1.8 Translation of Foreign Currency

Transactions in foreign currency are recorded by applying the exchange rate at the date of transaction. Monetary items denominated in the foreign currency remaining unsettled at the end of the year, are translated at the closing rate prevailing on the date of balance sheet. Gain/loss arising out of fuctuation on realisation, payment or restatement, except those identifable to the acquisition of fxed assets is charged/credited to proft & loss account.

1.9 Provision for Current and Deferred Tax

Income Tax expenses are accrued in accordance with Accounting Standard- 22, ''Accounting for taxes on income'', issued by the Institute of Chartered Accountants of India, which includes current taxes and deferred taxes. Deferred income tax refects the impact of current year timing difference between taxable income and accounting income for the year and reversal of the timing difference of earlier years. Deferred tax assets are recognized only to the extent of future taxable income, which will be available with reasonable certainty. Such deferred tax asset and liability shall be calculated and valued at each balance sheet date and carrying value of the same will be adjusted for recognising the change in the value of such deferred tax assets and liability.

1.10 Miscellaneous Expenditure

Preliminary expenditure and Public Issue expenditure are written off over a period of ten years on pro-rata basis.

1.11 Provisions & Contingencies

The Company creates a provision when there is present obligation as a result of past event that probably requires an outfow of resources and a reliable estimate can be made of the amount of obligation. A disclosure for a contingent liability is made when there is a possible obligation that probably will not require an outfow of resources or where a reliable estimate of obligation cannot be made.

1.12 Government Grants

(i) Capital Subsidy received from Government as contribution towards Capital Outlay for setting up the fxed assets is treated as Capital Grants which is recognized as Income in the Proft & Loss account over the period and in the proportion in which depreciation is charged.

(ii) Revenue Grants are recognized in Proft & Loss Account.

However no Government Grants have been received by the Company during the year.

1.13 Borrowing Cost

Borrowing cost attributable to the acquisition or construction of qualifying / eligible assets (as defned in AS – 16 issued by Companies Act) are capitalized as part of the cost of such assets. A qualifying / eligible asset is an asset that necessarily takes a substantial period of time to get ready for intended use. All other borrowing costs are recognised as an expense and are charged to revenue in the year in which they are incurred. However, the company has not borrowed any funds during the year.

1.14 Employee Benefts

Gratuity Benefts are recognized as an expense in the proft & loss account for the year in which the employee has rendered services. The Expense is recognized at the present value of the amounts payables determined using actuarial valuation techniques. Actuarial gains & losses in respect of Gratuity are charged to proft & loss account.

1.15 Impairment of Fixed Assets

Management periodically assesses using external and internal sources whether there is an indication that fxed assets of the company have suffered an impairment loss. Impairment loss, if any, is provided as per Accounting Standard (AS-28) on Impairment of Assets.

1.16 Earning Per Share

Basic earnings per equity share are being computed by dividing net proft after tax by the weighted average number of equity shares outstanding during the year.

1.17 Provisions, Contingent Liability & Contingent Asset

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outfow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the fnancial statements.


Mar 31, 2012

1.1 Method of Accounting .

The financial statements have been prepared and presented under the historical cost convention on accrual basis of accounting and accounting principals generally accepted in India and comply with the Accounting Standards prescribed in the Companies (Accounting Standard) Rules, 2006 issue by the Central Government in consultation with the National Advisory Committee on Accounting Standard and in accordance with the relevant provisions of the Companies Act, 1956, to the extent applicable.

1.2 Use of Estimates

The preparation of the financial statements in conformity with generally accepted accounting principals ('GAAP') in India requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent liabilities on the date of the financial statements. Management believes that the estimates made in the preparation of financial statements are prudent and reasonable. Actual result could differ from those estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

1.3 Fixed Assets

Fixed Assets are accounted for in the books at cost including incidental charges.

1.4 Depreciation

(i) Depreciation is provided at the rates prescribed in schedule-XIV to the Companies Act, 1956 on straight-line method.

(ii) Depreciation on addition/deletion to the fixed assets is provided from/to the date of addition/deletion of fixed assets.

1.5 Valuation of the investments

The long-term investments are valued at cost. However, if there is any decline in the value of investment, other than temporary, the carrying amount of investment is reduced for recognising the decline in value for each such investment. '

1.6 Valuation of stock of securities

Stock of securities has been valued at lower of cost and market price. However, the company has no inventory during the year or at the end of the year.

1.7 Revenue Recognition

Profit or losses from dealing in securities reflects the net profit / loss on sale and purchase of securities. Brokerage, interest and commission income is being recorded on accrual basis.

1.8 Translation of Foreign Currency

Transactions in foreign currency are recorded by applying the exchange rate at the date of transaction. Monetary items denominated in the foreign currency remaining unsettled at the end of the year, are translated at the closing rate prevailing on the date of balance sheet. Gain/loss arising out of fluctuation on realisation, payment or restatement, except those identifiable to the acquisition of fixed assets is charged/credited to profit & loss account.

1.9 Income Tax

Income Tax expenses are accrued in accordance with Accounting Standard-22, 'Accounting for taxes on income', issued by the Institute of Chartered Accountants of India, which includes current taxes and deferred taxes. Deferred income tax reflects the impact of current year timing difference between taxable income and accounting income for the year and reversal of the timing difference of earlier years. Deferred tax assets are recognized only to the extent of future taxable income, which will be available with reasonable certainty. Such deferred tax asset and liability shall be calculated and valued at each balance sheet date and carrying value of the same will be adjusted for recognising the change in the value of such deferred tax assets and liability.

1.10 Miscellaneous Expenditure

Preliminary expenditure and Public Issue expenditure are written off over a period of ten years on pro-rata basis.

1.11 Provisions & Contingencies

The Company creates a provision when there is present obligation as a result of past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of obligation. A disclosure for a contingent liability is made when there is a possible obligation that probably will not require an outflow of resources or where a reliable estimate of obligation cannot be made.

1.12 Government Grants

(i) Capital Subsidy received from Government as contribution towards Capital Outlay for setting up the fixed assets is treated as Capital Grants which is recognized as Income in the Profit & Loss account over the period and in the proportion in which depreciation is charged.

(ii) Revenue Grants are recognized in Profit & Loss Account.

However no Government Grants have been received by the Company during the year.

1.13 Borrowing Cost

Borrowing cost attributable to the acquisition or construction of qualifying / eligible assets (as defined in AS - 16 issued by Companies Act) are capitalized as part of the cost of such assets. A qualifying / eligible asset is an asset that necessarily takes a substantial period of time to get ready for intended use. All other borrowing costs are recognised as an expense and are charged to revenue in the year in which they are incurred. However, the company has not borrowed any funds during the year.

1.14 Impairment of Fixed Assets

Management periodically assesses using external and internal sources whether there is an indication that fixed assets of the company have suffered an impairment loss. Impairment loss, if any, is provided as per Accounting Standard (AS-28) on Impairment of Assets.

1.15 EARNING PER SHARE

Basic earnings per equity share are being computed by dividing net profit after tax by the weighted average number of equity shares outstanding during the year.

The company has only one class of shares referred to as equity shares having a par value of Rs.10/-. Each holder of equity shares is entitled to one vote per share.

In the event of liquidation of the company, the holders of Equity shares will be entitled to receive any of the remaining assets of the company, after distribution of all preferential amounts. However, no such preferential amounts exist currently. The distribution will be in proportion to the number of equity shares held by the shareholders.


Mar 31, 2011

I. Method of accounting

The financial statements have been prepared and presented under the historical cost convention on accrual basis of accounting and accounting principals generally accepted in India and comply with the Accounting Standards prescribed in the Companies (Accounting Standard) Rules, 2006 issued by the Central Government in consultation with the National Advisory Committee on Accounting Standard and in accordance with the relevant provisions of the Companies Act, 1956, to the extent applicable.

II. Use of Estimates

The preparation of the financial statements in conformity with Generally Accepted Accounting Principals ('GAAP') in India requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent liabilities on the date of the financial statements. Management believes that the estimates made in the preparation of financial statements are prudent and reasonable. Actual results could differ from those estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

III. Fixed Assets

Fixed Assets are accounted for in the books at cost including incidental charges.

IV. Depreciation

(i) Depreciation is provided at the rates prescribed in schedule-XIV to the Companies Act, 1956 on straight-line method.

(ii) Depreciation on addition/deletion to the fixed assets are provided from/to the date of addition/deletion of fixed assets.

V. Valuation of the investments

The long-term investments are valued at cost. However, if there is any decline in the value of investment, other than temporary, the carrying amount of investment is reduced for recognising the decline in value for each such investment.

VI. Valuation of stock of securities

Stock of securities has been valued at lower of cost and market price. However, the company has no inventory during the year.

VII. Revenue Recognition

Profit or losses from dealing in securities reflects the net profit / loss on sale and purchase of securities.

VIII. Retirement Benefits

a. Gratuity is provided on the basis of premium payable to Life Insurance Corporation of India for the employees covered under the "Frontline Securities Limited Employees Group Gratuity Trust".

The Employee's Group Gratuity Scheme is managed by Life Insurance Corporation of India. The present value of obligation is determined based on actuarial valuation using the projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

b. Leaves accumulated during the year lapse on the balance sheet date and thus no provision for leave encashment is made.

c. Contribution to provident fund is made monthly at predetermined rates to the appropriate authorities.

IX. Translation of Foreign Currency

Transactions in foreign currency are recorded by applying the exchange rate at the date of transaction. Monetary items denominated in the foreign currency remaining unsettled at the end of the year, are translated at the closing rate prevailing on the date of balance sheet. Gain/loss arising out of fluctuation on realisation, payment or restatement, except those identifiable to the acquisition of fixed assets is charged/ credited to profit & loss account.

X. income Tax

Income Tax expenses are accrued in accordance with Accounting Standard-22, 'Accounting for taxes on income', issued by the Institute of Chartered Accountants of India, which includes current taxes and deferred taxes. Deferred income tax reflects the impact of current year timing difference between taxable income and accounting income for the year and reversal of the timing difference of earlier years. Deferred tax assets are recognized only to the extent of future taxable income, which will be available with reasonable certainty. Such deferred tax asset and liability shall be calculated and valued at each balance sheet date and carrying value of the same will be adjusted for recognising the change in the value of such deferred tax assets and liability.

XI. Miscellaneous Expenditure

Preliminary expenditure and Public Issue expenditure are written off over a period of ten years on pro-rata basis.

XII. Provisions & Contingencies

The Company creates a provision when there is present obligation as a result of past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of obligation. A disclosure for a contingent liability is made when there is a possible obligation that probably will not require an outflow of resources or where a reliable estimate of obligation cannot be made.

XIII. Government Grants

(i) Capital Subsidy received from Government as contribution towards Capital Outlay for setting up the fixed assets is treated as Capital Grants which is recognized as Income in the Profit & Loss account over the period and in the proportion in which depreciation is charged.

(ii) Revenue Grants are recognized in Profit & Loss Account.

However no Government Grants have been received by the Company during the year.

XIV. Borrowing Cost

Borrowing cost attributable to the acquisition or construction of qualifying / eligible assets (as defined in AS -16 issued by Companies Act) are capitalized as part of the cost of such assets. A qualifying / eligible asset is an asset that necessarily takes a substantial period of time to get ready for intended use. All other borrowing costs are recognised as an expense and are charged to revenue in the year in which they are incurred. However, the company has not borrowed any funds during the year.

XV. Impairment of Fixed Assets

Management periodically assesses using external and internal sources whether there is an indication that fixed assets of the company have suffered an impairment loss. Impairment loss, if any, is provided as per Accounting Standard (AS-28) on Impairment of Assets.

XVI EARNING PER SHARE

Basic earnings per equity share are being computed by dividing net profit after tax by the weighted average number of equity shares outstanding during the year.

XVII FINANCIAL AND DERIVATIVE INSTRUMENTS

(i) The company has not entered into any derivative contracts which are outstanding as on 31 st March 2011.

(ii) In accordance with principles of prudence and other applicable guidelines as per Accounting Standards notified by the Companies (Accounting Standards) Rules 2006, the company has charged an amount of Rs. NIL (previous year NIL) to the Profit and Loss Account in respect of derivative contracts.

(iii) There is no foreign exchange transaction during the year and accordingly there is no foreign currency exposure.


Mar 31, 2010

I. Method of accounting

The financial statements have been prepared and presented under the historical cost convention on accrual basis of accounting and accounting principals generally accepted in India and comply with the Accounting Standards prescribed in the Companies (Accounting Standard) Rules, 2006 issued by the Central Government in consultation with the National Advisory Committee on Accounting Standard and in accordance with the relevant provisions of the Companies Act, 1956, to the extent applicable.

II. Use of Estimates

The preparation of the financial statements in conformity with Generally Accepted Accounting Principals (GAAP) in India requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent liabilities on the date of the financial statements. Management believes that the estimates made in the preparation of financial statements are prudent and reasonable. Actual results could differ from those estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

III. Fixed Assets

Fixed Assets are accounted for in the books at cost including incidental charges.

IV. Depreciation

(i) Depreciation is provided at the rates prescribed in schedule-XIV to the Companies Act, 1956 on straight-line method.

(ii) Depreciation on addition/deletion to the fixed assets are provided from/to the date of addition/deletion of fixed assets.

V. Valuation of the investments

The long-term investments are valued at cost. However, if there is any decline in the value of investment, other than temporary, the carrying amount of investment is reduced for recognising the decline in value for each such investment.

VI. Valuation of stock of securities

Stock of securities has been valued at lower of cost and market price. However, the company has no inventory during the year.

VII. Revenue Recognition

Profit or losses from dealing in securities reflects the net profit / loss on sale and purchase of securities..

VIII. Retirement Benefits

a. Gratuity is provided on the basis of premium payable to Life Insurance Corporation of India for the employees covered under the "Frontline Securities Limited Employees Group Gratuity Trust".

The Employees Group Gratuity Scheme is managed by Life Insurance Corporation of India. The present value of obligation is determined based on actuarial valuation using the projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

b. Leaves accumulated during the year lapse on the balance sheet date and thus no provision for leave encashment is made.

c. Contribution to provident fund is made monthly at predetermined rates to the appropriate authorities.

IX. Translation of Foreign Currency

Transactions in foreign currency are recorded by applying the exchange rate at the date of transaction. Monetary items denominated in the foreign currency remaining unsettled at the end of the year, are translated at the closing rate prevailing on the date of balance sheet. Gain/loss arising out of fluctuation on realisation, payment or restatement, except those identifiable to the acquisition of fixed assets is charged/ credited to profit & loss account.

X. Income Tax

Income Tax expenses are accrued in accordance with Accounting Standard-22, Accounting for taxes on income, issued by the Institute of Chartered Accountants of India, which includes current taxes and deferred taxes. Deferred income tax reflects the impact of current year timing difference between taxable income and accounting income for the year and reversal of the timing difference of earlier years. Deferred tax assets are recognized only to the extent of future taxable income, which will be available with reasonable certainty. Such deferred tax asset and liability shall be calculated and valued at each balance sheet date and carrying value of the same will be adjusted for recognising the change in the value of such deferred tax assets and liability.

XI. Miscellaneous Expenditure

Preliminary expenditure and Public Issue expenditure are written off over a period of ten years on pro-rata basis.

XII. Provisions & Contingencies

The Company creates a provision when there is present obligation as a result of past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of obligation. A disclosure for a contingent liability is made when there is a possible obligation that probably will not require an outflow of resources or where a reliable estimate of obligation cannot be made.

XIII. Government Grants

(i) Capital Subsidy received from Government as contribution towards Capital Outlay for setting up the fixed assets is treated as Capital Grants which is recognized as Income in the Profit & Loss account over the period and in the proportion in which depreciation is charged.

(ii) Revenue Grants are recognized in Profit & Loss Account.

However no Government Grants have been received by the Company during the year.

XIV. Borrowing Cost

Borrowing cost attributable to the acquisition or construction of qualifying / eligible assets (as defined in AS -16 issued by Companies Act) are capitalized as part of the cost of such assets. A qualifying / eligible asset is an asset that necessarily takes a substantial period of time to get ready for intended use. All other borrowing costs are recognised as an expense and are charged to revenue in the year in which they are incurred. However, the company has not borrowed any funds during the year.

XV. Impairment of Fixed Assets

Management periodically assesses using external and internal sources whether there is an indication that fixed assets of the company have suffered an impairment loss. Impairment loss, if any, is provided as per Accounting Standard (AS-28) on Impairment of Assets.

XVI EARNING PER SHARE

Basic earnings per equity share are being computed by dividing net profit after tax by the weighted average number of equity shares outstanding during the year.