frontier capital ltd share price Auditors report

TO

THE MEMBERS OF FRONTIER CAPITAL LIMITED

Report on the Audit of the Ind AS Financial Statements Opinion

We have audited the accompanying Ind AS Financial Statements of FRONTIER CAPITAL LIMITED ("the Company"), which comprise the Balance Sheet as at 31st March 2023, the Statement of Profit and Loss (including Other Comprehensive Income), Statement of Cash Flows and Statement of Changes in Equity for the year then ended, and notes to the Ind AS financial statements, including a summary of the significant accounting policies and other explanatory information (hereinafter referred to as "their AS Financial Statements).

In our opinion and to the best of our information and according to the explanations given to us the aforesaid Ind AS Financial Statements give the information required by the Companies Act, 2013 ("the Act") in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31 March, 2023, its profit including other comprehensive profit, its cash flows and the changes in equity for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAS) specified under section 143(10) of the Companies Act, 2013. Our responsibilities under those Standards are further described in the Auditors Responsibilities for the Audit of the Ind AS financial statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the Ind AS financial statements under the provisions of the Companies Act, 2013 and the Rules there under, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on the Ind AS Financial Statements.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Ind AS financial statements of the current period. These matters were addressed in the context of our audit of the Ind AS financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. For each matter below, our description of how our audit addressed the matter is provided in that context.

We have determined the matters described below to be the key audit matter to be communicated in our report. We have fulfilled the responsibilities described in the Auditors responsibilities for the audit of the Ind AS financial statements section of our report, including in relation to the matter. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the Ind AS financial statements. The results of our audit procedures, including the procedures performed to address the matter below, provide the basis for our audit opinion on the accompanying Ind AS financial statements.

Descriptions of Key Audit Matters are given below:

Key Audit Matters	Auditors Response
1. Impairment of Financial Assets based on Expected Credit Loss (ECL)	- Read and assessed the Companys impairment provision policy and their compliance with Ind AS 109 and the governance framework approved by the Board of Directors pursuant to Reserve Bank of India guidelines and directions issued from time to time.
(as described in Note 3.5 of the Ind AS Financial Statements)	- Understood the Companys key credit processes comprising granting, recording and monitoring of loans as well as impairment provisioning
Due to the significance of the judgments used in both classifications of loans into various stages as well as the computation of expected credit losses on such financial assets as per Ind AS 109, this has been considered as a key audit matter.	- Read and assessed the Companys impairment provisioning policy as per Ind AS 109
Financial instruments, which include loans to customers, represent a significant portion of the total assets of the Company.	- Obtained an understanding of the Companys Expected Credit Loss (ECL) methodology, the underlying assumptions and performed sample tests to assess the staging of outstanding exposures
The Company has gross loans aggregating 225.00 lakhs as at March 31, 2023	- Tested the ECL model, including assumptions and underlying computation
Estimates regarding the impairment provision against loans are based on the expected credit loss model developed by the Company based on the guiding principles prescribed under IndAS 109. As stated, in the notes to the financial statements for the year ended March 31, 2023, the impairment provision is based on the expected credit loss model requires the management of the Company to make significant judgments in connection with related computation.	- Assessed the Exposure at Default used in the impairment calculations on a test basis
These include:	- Assessed the items of loans, credit related contingent items as at the reporting date which are considered in the impairment computation as at the reporting date.
(a) Segmentation of the loan portfolio into homogenous pool of borrowers;
(b) Identification of exposures where there is a significant increase in credit risk and those that are credit impaired;
(c) Determination of the 12 month and life-time probability of default for each of the segments identified; and
(d) Loss given default for various exposures based on past trends/ experience, management estimates etc.,
Note 3.5 to the Ind AS Financial Statements explains the various matters that the management has considered for developing this expected credit loss model.

Information Other than the Ind AS financial statements and Auditors Report Thereon

The Companys Board of Directors is responsible for the other information. The other information comprises the information included in the Annual report, but does not include the Ind AS financial statements and our auditors report thereon.

Our opinion on the Ind AS financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the Ind AS financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the Ind AS financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information; we are required to report that fact. We have nothing to report in this regard.

Responsibilities of Management and Those Charged with Governance for the Ind AS financial statements

The Companys Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, specified under section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities, selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent, and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation of the Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the Ind AS financial statements, Board of Directors is responsible for assessing the Companys ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the Companys financial reporting process.

Auditors Responsibilities for the Audit of the Ind AS financial statements

Our objectives are to obtain reasonable assurance about whether the Ind AS financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAS will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the Ind AS financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Companies Act, 2013, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such controls.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

Conclude on the appropriateness of managements use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Companys ability to continue as a going concern. If we conclude that a material uncertainty exists we are required to draw attention in our auditors report to the related disclosures in the Ind AS financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors report. However, future events or conditions may cause the Company to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the Ind AS financial statements including the disclosures, and whether the Ind AS financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the Ind AS financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the Ind AS financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the Ind AS financial statements.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the Ind AS financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by the Master Direction- Non-Banking Financial Companies Auditors Report (Reserve Bank) Directions, 2016 ("the Directions") issued by the Reserve Bank of India ("the Bank") in exercise of powers conferred by Section 45MA(1A) of the Reserve Bank of India Act, 1934 and on the basis of such checks as we considered appropriate and according to the information and explanations given to us, we hereby report on the matters specified in paragraphs 3 and 4 of the said Directions to the extent applicable:

i. The Company is engaged in the business of a non-banking financial institution and has duly obtained a Certificate of Registration (COR) from the Bank.

ii. The Company has more than 50% of its assets in financial assets and earned more than 50% of its income from financial assets. In terms of its principal business criteria (financial asset/income pattern) as on 31 March, 2023, the Company is entitled to continue to hold CoR issued by the Bank.

iii. The Company meets the Net Owned Fund requirement as laid down in the Master Direction Non- Banking Financial Company - Non-Systemically Important Non-Deposit taking Company (Reserve Bank) Directions, 2016.

iv. The Board of Directors of the company have duly passed a resolution for non-acceptance of the "Public Deposits" within the meaning of paragraph 3 (xv) of the Master Direction Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions 2016, for the financial year ended 31st March, 2023.

v. The Company has not accepted any "Public Deposits" within the meaning of paragraph 3 (xv) of the Master Direction - Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions 2016, during the year ended 31st March, 2023.

vi. The company has complied with the prudential norms relating to income recognition, accounting standards, asset classification and provisioning for bad and doubtful debts as applicable to it in terms of Master Direction - Non-Banking Financial Company - Non-Systemically Important Non-Deposit taking Company (Reserve Bank) Directions, 2016.

vii. The Company is not systematically important non-deposit taking NBFC as defined in Master Direction -NonBanking Financial Company-Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016 & accordingly para 3(C)(iv) of the Directions is not applicable.

2. As required by the Companies (Auditors Report) Order, 2020 ("the Order") issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act, we give in the Annexure "A", a statement on the matters specified in the paragraph 3 and 4 of the Order to the extent applicable.

3. With respect to the other matters to be included in the Auditors Report in accordance with the requirements of section 197(16) of the Act, as amended: In our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by the Company to its directors during the year is in accordance with the provisions of section 197 of the Act.

4. As required by Section 143 (3) of the Act, we report that:

i. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.

ii. In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.

iii. The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, Statement of Cash Flow and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account.

iv. In our opinion, the aforesaid Ind AS financial statements comply with the Indian Accounting Standards specified under section 133 of the Act read with Rule 7 of the Companies (Accounts) rules, 2014

v. On the basis of the written representations received from the directors as on 31 March, 2023 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March, 2023 from being appointed as a director in terms of Section 164(2) of the Act.

vi. With respect to the adequacy of the internal financial controls with reference to the financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure B".

vii. With respect to the other matters to be included in the Auditors Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:

a. The Company does not have any pending litigations which would impact its financial position.

b. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.

c. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company except Unpaid dividend of 18,331/-

d. (i) The management has represented that, to the best of its knowledge & belief, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the company to or in any other person(s) or entity(ies). including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(ii) The management has represented, that, to the best of its knowledge and belief, no funds have been received by the company from any person(s) or entity(ies), including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

(iii) Based on such audit procedures we have considered reasonable and appropriate in the circumstances, nothing has come to our notice that the representations made by management as stated in (i) and (ii) herein above, contain any material misstatement.

e. The Company has not declared or paid any dividend during the year.

f. Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books of account using accounting software which has a feature of recording audit trail (edit log) facility is applicable to the Company with effect from April 1, 2023, and accordingly, reporting under Rule 11(g) of Companies (Audit and Auditors) Rules, 2014 is not applicable for the financial year ended March 31, 2023.

	For A.C. Bhuteria & Co.
	Chartered Accountants
	Firms Registration No. 303105E
	Sd/-
	Mohit Bhuteria
Place of Signature: Kolkata	Partner
Date: 29-05-2023	Membership No. 056832
	UDIN: 23056832BGXQMR5421

Annexure A to Independent Auditors Report referred to In Paragraph 2 under the heading of "Report on Other Legal and Regulatory Requirements" of our report of even date

i. (a) (A) In our opinion and according to the information and explanations given to us and based on examination of records we considered necessary, the Company is maintaining proper records showing full particulars, including quantitative details and situation of Property, Plant & Equipment.

(B) in our opinion and according to the information and explanations given to us and based on examination of records we considered necessary, the Company does not have any intangible assets Accordingly, para 3(1)(a)(B) of the Order is not applicable.

(b) In our opinion and according to the information and explanations given to us and based on examination of records we considered necessary, the Company has verified its property, plant and equipment during the year. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies have been noticed on such verification.

(c) In our opinion and according to the information and explanations given to us and based on examination of records we considered necessary, the Company does not have any immovable property. Accordingly, paragraph 3(1)(c) of the Order is not applicable.

(d) In our opinion and according to the information and explanations given to us and based on examination of records we considered necessary, the Company has not revalued its Property, Plant and Equipment during the year. The Company does not have any Right of Use asset or intangible assets. Accordingly, para 3(1)(d) of the Order is not applicable.

(e) In our opinion and according to the information and explanations given to us and based on examination of records we considered necessary, no proceedings have been initiated or are pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder. Accordingly, para 3(e) of the Order is not applicable.

ii. (a) In our opinion and according to the information and explanations given to us and based on examination of records we considered necessary, the Company does not have any inventory. Accordingly paragraph 3(ii)(a) of the Order is not applicable.

(b) In our opinion and according to the information and explanations given to us and based on the examination of records we considered necessary, the company has not been sanctioned working capital limits in excess of five crore rupees, in aggregate from any bank or financial institutions on the basis of security of current assets, at any point of time during the year. Accordingly, para 3(i)(b) is not applicable.

iii. In our opinion and according to the information and explanations given to us and examination of records we considered necessary, the Company has not provided any guarantee or security to Company, firm, Limited Liability Partnership and any other parties. The Company has not granted any loan or advances in nature of loan, secured or unsecured to Company or Limited Liability Partnership except one Partnership firm.

a) The Company is a Non-Banking Finance Company registered with Reserve Bank of India under 45-IA of the Reserve Bank of India Act, 1934, having principal business of giving loans. Accordingly in our opinion, para 3(i)(a) of the Order is not applicable.

b) In our opinion and according to the information and explanations given to us and based on examination of records we considered necessary, the terms and condition of the grant of all loans and advances in the nature of loans are not prejudicial to the companys interest. The Company has not made any investments.

c) In our opinion and according to the information and explanations given to us and examination of records we considered necessary, the schedule of repayment of principal and payment of interest has been stipulated and the repayment and receipt are regular.

d) In our opinion and according to the information and explanations given to us and examination of records we considered necessary, there are no amounts in respect of loans and advances in the nature of loans granted which are overdue for more than 90 days as at Balance Sheet date.

e) The Company is a Non-Banking Finance Company registered with Reserve Bank of India under 45 IA of the Reserve Bank of India Act, 1934, having principal business of giving loans. Accordingly in our opinion, para 3(iii)(e) of the Order is not applicable.

f) In our opinion and according to the information and explanations given to us and examination of records we considered necessary, the Company has not granted any loans and advances in the nature of loans either repayable on demand or without specifying any terms or period of repayment Accordingly, para 3(iii)(f) of the Order is not applicable.

iv. In our opinion and according to the information and explanations given to us and examination of records we considered necessary, the Company has complied with the provisions of Section 185 & Section 186 of the Companies Act 2013 in respect of loans made, as applicable. The Company has not made any investments or given any guarantee or security on behalf of any party.

v. In our opinion and according to the information and explanations given to us and examination of records we considered necessary, the Company has not accepted deposits during the year and therefore the directives issued by the Reserve bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Companies Act 2013 and the rules framed there under are not applicable to the Company.

vi. In our opinion and according to the information and explanation given to us, maintenance of cost records has not been specified by the Central Government under sub-section (1) of section 148 of the Companies Act, 2013.

vii. (a) According to the information and explanations given to us and on the basis of our examination of the books and records of the Company, the company is not regular in depositing undisputed statutory dues and other material statutory dues with the appropriate authorities.

(b) In our opinion and according to the information and explanation given to us and examination of books and records, there are no dues of statutory dues referred to in sub-clause (a) which have not been deposited on account of any dispute.

viii. In our opinion and according to the information and explanation given to us and examination of books and records, there are no transactions that are not recorded in the books of account that have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (43 of 1961). Accordingly, para 3(viii) of the Order is not applicable.

ix. (a) In our opinion and according to the information and explanation given to us and examination of books and records, the Company has not defaulted in repayment of loans or other borrowings or in the payment of interest thereon to any lender except for a sum of Rs. 0.86 Lakhs which is overdue for more than one year.

(b) In our opinion and according to the information and explanation given to us and examination of books and records, the Company has not been declared as wilful defaulter by any bank or financial institution or other lender.

(c) In our opinion and according to the information and explanation given to us and examination of books and records, the Company has applied loans for the purpose for which the loans were obtained.

(d) In our opinion and according to the information and explanation given to us and examination of books and records, and on overall examination of the Balance Sheet of the company, funds raised on short term basis have not been utilized for long term purposes.

(e) In our opinion and according to the information and explanation given to us and examination of books and records, the Company does not have any subsidiaries, associates or joint ventures. Accordingly, para 3(ix)(e) of the Order is not applicable.

(f) In our opinion and according to the information and explanation given to us and examination of books and records, the Company does not have any subsidiaries, associates or joint ventures. Accordingly, para 3(ix)(f) of the Order is not applicable.

x. (a) In our opinion and according to the information and explanation given to us and examination of books and records, the Company has not raised any money by way of initial public offer or further public offer (including debt instruments) during the year. Accordingly, para 3(x)(a) of the Order is not applicable.

(b) In our opinion and according to the information and explanation given to us and examination of books and records, the Company has not made any preferential allotment or private placement of shares or convertible debentures (fully, partially or optionally convertible) during the year. Accordingly, para 3(x)(b) of the Order is not applicable.

xi. (a) In our opinion and according to the information and explanation given to us and examination of books and records, no fraud by the Company or on the Company has been noticed or reported during the year. Accordingly, para 3(xi)(a) of the order is not applicable.

(b) In our opinion and according to the information and explanation given to us and examination of books and records, no report under sub-section (12) of Section 143 of the Companies Act has been filed by the auditors in Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules, 2014 with the Central Government. Accordingly, para 3(xi)(b) of the Order is not applicable. Rule by the auditors in Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors)

(c) In our opinion and according to the information and explanation given to us and examination of books and records, no complaints of any whistle blower has been received by the Company during the year. Accordingly, para 3(xi)(c) of the Order is not applicable.

xii. In our opinion and according to the information and explanations given to us, the Company is not a Nidhi company. Accordingly, para 3(xii) of the Order is not applicable.

xiii. In our opinion and according to the information and explanation given to us and examination of books and records, transactions with the related parties are in compliance with sections 177 and 188 of the Companies Act, 2013, as applicable and the details of related party transactions have been disclosed in the financial statements as required by the applicable accounting standards.

xiv. (a) & (b) In our opinion and according to the information and explanation given to us and examination of books and records, the Company does not have internal audit system.

xv. In our opinion and according to the information and explanation given to us and examination of books and records, the Company has not entered into any non-cash transactions with directors or persons connected with him as specified under Section 192 of The Companies Act, 2013 Accordingly, para 3(xv) of the Order is not applicable.

xvi. (a) The Company is required to be registered under section 45-IA of the Reserve Bank of India Act 1934 as a NonBanking Finance Company and the registration has been so obtained.

(b) In our opinion and according to the information and explanation given to us and examination of books and records, the Company has conducted Non-Banking Financial activities with a valid Certificate of Registration (COR) from the Reserve Bank of India as per the Reserve Bank of India Act, 1934. The company has not conducted any Housing Finance activities.

(c) In our opinion and according to the information and explanation given to us and examination of books and records, the Company is not a Core Investment Company (CIC) as defined in the regulations made by the Reserve Bank of India. Accordingly, paragraph 3(xvi)(c) of the Order is not applicable.

(d) In our opinion and according to the information and explanation given to us and examination of books and records, there is no Core Investment Company (CIC) in the group.

xvii. In our opinion and according to the information and explanation given to us and examination of books and records, the company has not incurred any cash losses in the current financial year and in the immediately preceding financial year.

xviii. In our opinion and according to the information and explanation given to us and examination of books and records, there has been no resignation of the statutory auditors during the year.

xix. In our opinion and according to the information and explanation given to us and examination of books and records we consider necessary, on the basis of the financial ratios, ageing and expected dates of realization of financial assets and payment of financial liabilities, other information accompanying the financial statements, and our knowledge of the Board of Directors and management plans, we are of the opinion that no material uncertainty exists as on the date of the audit and when they fall due within a period of one year from the balance sheet date.

xx. In our opinion and according to the information and explanation given to us and examination of books and records we consider necessary, the Company is not covered under Section 135 of the Companies Act, 2013. Accordingly, para 3(xx) of the Order is not applicable.

xxi. This being a standalone financial statement, reporting under para 3(xxi) of the Order is not applicable.

	For A.C. Bhuteria & Co.
	Chartered Accountants
	Firms Registration No. 303105E
	Sd/-
	Mohit Bhuteria
Place of Signature: Kolkata	Partner
Date: 29-05-2023	Membership No. 056832
	UDIN: 23056832BGXQMR5421

Annexure B to the Independent Auditors Report

Report on the Internal Financial Controls under Clause (1) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")

We have audited the internal financial controls with reference to the financial statements of Frontier Capital Limited ("the Company") as of 31st March, 2023 in conjunction with our audit of the Ind AS financial statements of the Company for the year ended on that date

Managements Responsibility for Internal Financial Controls

The Companys management is responsible for establishing and maintaining internal financial controls based on the internal financial control with reference to these financial statements criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of india (ICAI), These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companys policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013

Auditors Responsibility

Our responsibility is to express an opinion on the Companys internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the "Guidance Note") and the Standards on Auditing. issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Contrais and, both issued by the institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls with reference to the financial statements and their operating effectiveness. Our audit of internal financial controls with reference to the financial statements included obtaining an understanding of internal financial controls with reference to financial statements, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditors judgment, including the assessment of the risks of material misstatement of the Ind AS financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companys internal financial controls with reference to the financial statements.

Meaning of Internal Financial Controls with reference to the financial statements

A companys internal financial control with reference to the financial statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companys internal financial control with reference to the financial statements includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide disposition of the companys assets that could have a material effect on the Ind AS financial statements reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the companys assets that could have a material effect on the Ind AS Financial Statements.

Inherent Limitations of Internal Financial Controls with reference to the financial statements

Because of the inherent limitations of internal financial controls with reference to the financial statements, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls with reference to the financial statements to future periods are subject to the risk that the internal financial control with reference to the financial statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion, the Company has, in all material respects, an adequate internal financial controls with reference to the financial statements and such internal financial controls with reference to the financial statements were operating effectively as at 31st March, 2023, based on the internal financial control with reference to the financial statements criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.

	For A.C. Bhuteria & Co.
	Chartered Accountants
	Firms Registration No. 303105E
	Sd/-
	Mohit Bhuteria
Place of Signature: Kolkata	Partner
Date: 29-05-2023	Membership No. 056832
	UDIN: 23056832BGXQMR5421