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.
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
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.