Disclosure Context

Frontline Corporation Limited (CIN: L63090WB1989PLC099645, Scrip Code: 532042) submitted this communication to BSE Ltd. on June 15, 2026, regarding the submission of audited standalone financial results for the quarter and year ended March 31, 2026, pursuant to Regulation 33 of SEBI (LODR) Regulations, 2015. The submission includes the previously omitted Cash Flow Statement.

Audit Opinion and Qualifications

The statutory auditor, Paresh Thothawala & Co. (Firm Registration No: 114777W), issued a qualified opinion on the standalone annual financial results. The qualification is based on three main issues:

Basis for Qualified Opinion

1. Non-provision of Interest on NPA Accounts: The company has not provided interest of ₹671.98 lakhs on Non-Performing Asset (NPA) accounts for the year. This results in understatement of bankers' loan liabilities and overstatement of profit by the same amount.

2. Asset Impairment Assessment: Lenders have taken physical/symbolical possession and initiated auction processes on various assets, though the company has obtained stay orders against these proceedings. The management has not performed any impairment assessment for these assets, making the carrying value unascertainable.

3. Uncertain Consequences: Due to uncertain consequences of the above matters, the auditor cannot identify the full impact on the financial statements.

Emphasis of Matter

The auditor drew attention to several matters without modifying the opinion:

1. SARFAESI Actions by Lenders: Multiple lenders have issued notices under SARFAESI Act 2002 for non-payment of principal and interest. The company has challenged these notices through:

  • Securitization Application in Debts Recovery Tribunal, Calcutta
  • Civil Suit No. 217 of 2013 in Kolkata High Court against Punjab & Sind Bank regarding Specific Performance of Agreement for 8 Old Court House property
  • The matter reached Supreme Court through Special Leave Petition, which was decided against the company but later a Miscellaneous Application resulted in the Apex Court allowing the Civil Court to proceed with the suit on merit

2. Corporate Guarantee Exposure: The company extended corporate guarantees for Fairdeal Supplies Limited (where promoter-directors are also directors/promoters), which was admitted to Corporate Insolvency Resolution Process (CIRP) under IBC 2016 by NCLT Kolkata Bench on March 19, 2024. The ultimate financial impact is not determinable.

3. MSME Dues: Certain dues to Micro, Small and Medium Enterprises are outstanding, but interest on delayed payments as required under MSMED Act, 2006 has not been provided as no claims have been received. Financial impact remains unquantified.

4. Balance Confirmations: Non-availability of balance confirmations from some suppliers and loans & advances.

Quantified Impact of Audit Qualifications

The annexure provides the quantified impact of the audit qualifications:

| Financial Item | As Reported (₹ Lakh) | After Adjustment (₹ Lakh) |

| Turnover/Total Income | 11,834.63 | 11,834.63 |

| Total Expenditure | 11,869.54 | 12,541.52 |

| Net Profit/(Loss) | 246.94 | (425.04) |

| Earnings Per Share | 4.84 | (8.54) |

| Total Assets | 8,502.84 | 8,502.84 |

| Total Liabilities | 8,502.84 | 8,502.84 |

| Net Worth | 1,785.81 | 1,113.83 |

Management's Response to Qualifications

The management stated that interest provision on NPA accounts has not been accounted for due to ongoing legal disputes. The matter has progressed through Calcutta High Court (Division Bench order in company's favor), Supreme Court (Special Leave Petition against company), and subsequent Miscellaneous Application resulting in the Apex Court allowing the Civil Court to proceed with the suit on merit. A Commission has been set up for cross-examination as per Calcutta High Court order.

Financial Performance Highlights

Annual Results (Year Ended March 31, 2026)

  • Revenue from operations: ₹11,834.63 lakhs (Previous year: ₹10,395.62 lakhs)
  • Other income: ₹341.87 lakhs (Previous year: ₹436.51 lakhs)
  • Total Income: ₹12,176.50 lakhs (Previous year: ₹10,832.13 lakhs)
  • Total expenses: ₹11,869.54 lakhs (Previous year: ₹10,474.47 lakhs)
  • Profit before tax: ₹306.96 lakhs (Previous year: ₹357.66 lakhs)
  • Profit for the period: ₹241.08 lakhs (Previous year: ₹288.85 lakhs)
  • Total Comprehensive Income: ₹246.94 lakhs (Previous year: ₹289.22 lakhs)
  • EPS (Basic & Diluted): ₹4.84 (Previous year: ₹5.80)

Quarterly Results (Q4 Ended March 31, 2026)

  • Revenue from operations: ₹3,304.57 lakhs
  • Other income: ₹109.51 lakhs
  • Total Income: ₹3,414.08 lakhs
  • Profit before tax: ₹100.86 lakhs
  • Profit for the period: ₹83.04 lakhs
  • EPS (Basic & Diluted): ₹1.67

Segment-wise Performance

The company operates in multiple segments:

Segment Revenue (Year Ended March 31, 2026)

  • Transportation: ₹2,922.18 lakhs
  • Trading: ₹5,085.75 lakhs
  • Wind Energy: ₹53.65 lakhs
  • Renting of Immovable Properties: ₹176.24 lakhs
  • Petrol Pump: ₹3,362.66 lakhs
  • Other Income: ₹501.00 lakhs

Segment Results (Profit Before Tax and Interest)

  • Transportation: ₹177.83 lakhs
  • Trading: ₹258.05 lakhs
  • Wind Energy: ₹75.84 lakhs
  • Renting of Immovable Properties: ₹74.91 lakhs
  • Petrol Pump: ₹52.33 lakhs
  • Others: ₹(248.01) lakhs

Financial Position as at March 31, 2026

Assets

  • Total Assets: ₹8,502.84 lakhs (Previous year: ₹8,203.18 lakhs)
  • Non-current assets: Includes Property, Plant and Equipment, Investment Property (₹231.70 lakhs), Financial Assets, Deferred Tax Assets, and Other non-current assets
  • Current assets: Includes Inventories (₹127.58 lakhs), Trade Receivables (₹112.77 lakhs), Cash and cash equivalents (₹10.19 lakhs), and Other current assets

Equity and Liabilities

  • Equity Share capital: ₹497.75 lakhs
  • Other Equity: ₹1,288.07 lakhs
  • Non-current liabilities: Borrowings of ₹481.50 lakhs
  • Current liabilities: Borrowings of ₹5,040.57 lakhs, Trade payables (including MSME dues of ₹18.73 lakhs), and Other financial liabilities

Cash Flow Statement (Year Ended March 31, 2026)

  • Net cash from operating activities: ₹117.64 lakhs
  • Net cash from investing activities: ₹125.33 lakhs
  • Net cash from financing activities: ₹(284.70) lakhs
  • Net decrease in cash & cash equivalents: ₹(41.73) lakhs

Approval and Signatories

The financial results were reviewed by the Audit Committee and approved by the Board of Directors in their meeting held on May 30, 2026. The document is signed by:

  • Suresh Kumar Verma, Company Secretary & Compliance Officer
  • Pawankumar Agarwal, Managing Director (DIN: 00060418)
  • Paresh K Thothawala, Partner of the statutory audit firm