1 Contingent Liabilities:
 
 The Company has Contingent Liabilities in respect of JCCI Penalty of
 Rs. 5,34,523/- and Disputed Sales Tax Liability (Bangalore) of Rs.
 6,47,571/- .
 
 2 Deferred Tax Assets /(Liabilities ): The Company has recognized
 deferred tax arising on account of timing difference, being the
 difference between the taxable income and accounting income, that
 originated in one period and is capable of reversal in one or more
 subsequent period(s) in compliance with Accounting Standard (AS-22)
 Accounting for Taxes on Income issued by Institute of Chartered
 Accountant of India.
 
 3 Balance Appearing in various accounts under the head Unsecured
 Loans, Sundry Debtors, Loans and Advances, Deposits and Sundry
 Creditors are subject to confirmation and reconciliation''s.
 Consequential adjustment thereof arising if any, will be made in the
 year, the confirmation and reconciliation''s are received.
 
 4 In the opinion of the management, the Current Assets, Loans and
 Advances, deposit are expected to realize at the values stated in the
 Balance Sheet and adequate provisions have been made in the accounts
 for all known liabilities.
 
 5 No amounts are outstanding to Micro, Small and Medium Enterprises
 Development Act, 2006 for the year ended on 31st March 2011.
 
 6 Segment Reporting :
 
 The company operates only in one business segment being BPO / KPO
 Solutions and there are no geographical segments to be reported.
 
 7 Information on Related party transaction as required by Accounting
 Standard (AS 18) for the year ended 31st March, 2011
 
 Associate Companies
 
 Frontline Sales Ltd.
 
 Frontline HR Solutions Ltd.
 
 Key Managerial Personnel
 
 Natwarlal Sureka - Managing Director
 
 8 Scheme of Arrangement
 
 Pursuant to the Scheme of Arrangement under section 78,100,391 & 394 of
 the Companies Act 1956 and subsequent order of Bombay High Court Dated
 25th June 2010 thereon, the paid up share capital of the company of Rs.
 12,01,00,000/- divided into 1,20,10,000 equity shares of Rs 10/- each
 has been reduced to Rs 1,20,10,000/- divided into 12,01,000 equity
 shares of Rs 10/- each without payment of the cancelled value of said
 shares to the shareholders of the company. The capital so reduced of Rs
 10,80,90,000/- , share premium Rs 83,145/- and the capital reserve to
 the extent of Rs 12,86,48,232/- aggregating to Rs. 23,68,21,377 has
 been set off against accumulated losses of Rs 25,41,43,793/- of the
 company thereby reducing the accumulated losses to that extent.
 
 9 Previous Year''s figures have been regrouped and rearrange whichever
 necessary in confirm to those of Current Year. Figures have been
 rounded off to the nearest rupee.