| 1. General Information
Frontline Corporation Ltd. ("the Company") is engaged in the services
of transportation, trading of Bricks and Automobile parts & Lubricants,
Iron Ore, Renting of Property and production of wind energy. The
company has its operations mainly in India.
2. Terms/Rights attached to Equity Shares
The Company has only one class of Equity Shares having Par Value of Rs
10/- per Share. Each holder of Equity Share is entitled to one vote per
share.
3. Calls in Arrear are pending for Rs 5/- per share on 45,100 Equity
Shares.
4. In the event of liquidation of the company, the holders of equity
shares will be entitled to receive remaining assets of the company,
after distribution of all preferential amounts. The distribution will
be in proportion to the number of equity shares held by the
shareholders. The holders of Partly Paid Equity Shares will have to
contribute unpaid amount on the the Equity Shares held by them.
5. Working Capital Facilities are secured by hypothecation of
inventories, Book Debts and commercial vehicles of the company as well
as by way of mortgage of some of the property of the company. The Bank
is also holding personal guarantee of some of the Directors of the
company as well as Corporate Guarantee of other group Companies.
6. Unsecured Loan taken from Related Parties at the rate of Interest
of 9% per annum.
7. Working Capital Loans from bank includes Rs 1467.04 Lac against
Cash Credit Limit and Rs. 2000.00 Lac against Export Packing Credit
Limit from Punjab and Sind Bank has been slipped to Non Performing
Assets with effect from 31-03-2012. The company has also defaulted in
interest payable on said loan amounting to Rs 47359660/- for the period
from 01/04/2013 to 31/03/2014.
8. Capital Work in Progress
The company has incurred expenditure for site development in respect of
various plots acquired during the year 2013- 2014. Pending completion
of work the amount is shown under Capital Work in Progress. Final
allocation of the same to the respective plots will be done on
completion of the work as tangible assets and amount Rs.19,92,421/- is
still pend- ing as WIP.
9. The company has provided Unsecured Loan to Gateway Commodities(P)
Ltd. during the year and yearend balance is Rs.6,44,54,127/- (Previous
year Rs. 8,74,29,414/-). The said loan carry interest @ 14% p.a.
10. Short Term Loans & Advances includes Rs. 14,891,385 /-(P.Y. Rs.
1,00,10,392/-) being advance tax refundable under Income Tax Act,1961
in respect of various years withheld by authorities in respect of
disputed tax demands for which appeals are pending before various
authorities. The company is confident of favorable disposal of the same
and hence no provision is considered necessary in respect thereof.
11. Contingent liabilities not provided for
Particulars 2013-14 2012-13
Corporate Bank Guarantee 318,00,00,000 318,00,00,000
Claims against the Company not
acknowledged as
debts (including MACT claims
aggregating to Rs.3,49,00,258/- for 4,01,51,518 4,01,51,518
which the Company holds adequate
Insurance)
Disputed Direct and Indirect Taxes
for which appealsare pending 58,65,398 1,00,89,146
at different forums
Suit filed by The New India Insurance
Co Ltd to recover amount 2,12,87,770 2,12,87,770
under The Carries Act
Service tax on Rental Income
(the matter is Sub- Judice in NIL 26,34,837
Hon'ble High Court, New Delhi)
TOTAL CONTINGENT LIABILITY 3,24,73,04,686 3,25,41,63,271
12. The company has provided Corporate Bank Guarantee to UCO Bank in
respect of Credit Facilities enjoyed by Fairdeal Supplies Ltd. In
respect of such guarantee, company has given some of its Fixed Assets
as Collateral Securities. Details of such Fixed Assets have been given
in Note No 10.2. UCO Bank has issued demand notice dated 05-08-2012 to
the borrowers/guarantors/mortgagors to repay the amount mentioned in
the notice being Rs 235,94,31,422.65, failing on which the bank has
taken Symbolic Possession of the properties in exercise of powers
conferred upon them under the SARFAESI Act, 2008.
13. In respect of the corporate guarantee given by the company in
respect of Credit facilities of Fairdeal Supplies Ltd (a group company)
by UCO Bank, Government approval has not been obtained in terms of
Section 295 of The Companies Act, 1956.
14. Related Party disclosures under Accounting Standard 18
1 Party where control exists Nil
2 Other related parties with whom transactions have taken place during
the year
Joint Venture Company Nil
Associates Fair deal Supplies Limited
Falgun Export Pvt. Limited
Centre for Advanced studies
in Engineering
Fair Chemical & Marketing
Prima Financial Services Ltd.
Fair deal (partnership firm)
Frontline Industries Limited
Jhunjhunwala Charitable Trust
Scientific Weigh Bridge &
Auto parts(partnership firm)
3 Key Management Personnel & their relatives:
Pawankumar Agrawal
Narayanprasad Agrawal
Saurabh Jhunjhunwala
Ramprasad Agrawal
Baijnath Agrawal & Sons H.U.F.
Bhagwani Devi Agrawal
Gaurav Jhunjhunwala
Hansa Agrawal
Shraddha Jhunjhunwala
Raja Jhunjhunwala
Mukund Jhunjhunwala
Narayanprasad Agrawal & sons
H.U.F.
Ramprasad Agrawal &sons H.U.F.
Renudevi Jhunjhunwala
Rewadevi Jhunjhunwala
Shilpi Jhunjhunwala
Kritin Jhunjhunwala
Venya Jhunjhunwala
15. The Figures in Italics indicate Previous Years Figure.
16. The company has disclosed business segments as the primary segments
which have been identified taking into account the nature of the
activities ( i.e. Wind Energy, Trading & Transportation, Renting of
Immovable property) the differing risk & returns the organization
structure and internal reporting System. The Company's operation
predominantly relate to Bulk Transportation of Goods & Trading in
Automotive Parts.
17. The Company's business relates to the domestic market.
18. Segment revenue, segment results, segment assets, and segment
liabilities include the respective amount identifiable to each of the
segment.
19. The company has disclosed business segments as the primary segments
which have been identified taking into account the nature of the
activities ( i.e. Wind Energy, Trading & Transportation, Renting of
Immovable property) the differing risk & returns the organization
structure and internal reporting System. The Company's operation
predominantly relate to Bulk Transportation of Goods & Trading in
Automotive Parts.
20. The Company's business relates to the domestic market.
21. Segment revenue, segment results, segment assets, and segment
liabilities include the respective amount identifiable to each of the
segment.
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