corporate informationcompanies act, 2013, including any statutory modificationor re-enactment...

24th Annual Report 2017-2018

93Frontline Securities Ltd.

FSL

CORPORATE INFORMATION

BOARD OF DIRECTORS:

• Mr.RakeshK.Jain Non–ExecutiveChairman• Mr.GauriShankerPandey WholeTimeDirector• Mr.ArunK.Jain IndependentDirector• Mr.AtulK.Jain IndependentDirector• Dr.CharanjeetSinghBedi IndependentDirector• Mr.BaljitSinghBedi IndependentDirector• Mrs.SarabjeetKaur Non-ExecutiveDirector• Ms.RichaArora WholeTimeDirector&CompanySecretary

KEY MANAGERIAL PERSONNEL:

• Mr.GauriShankerPandey WholeTimeDirector• Ms.RichaArora CompanySecretary,Complianceofficer andWholeTimeDirector• CA.MayankAgarwal ChiefFinancialOfficer

CIN: L65100DL1994PLC058837

REGISTERED OFFICE: M-6,IIndFloor,MBlockMarket,Greater Kailash-II,NewDelhi-110048BRANCH OFFICE: B-22,Sector-4,Noida-201301 Tel:+91-120-2534066, Fax:+91-120-2534111WEBSITE: www.fslindia.com

AUDITORS: WalechaInder&Associates CharteredAccountants 6-8,Sanjaymarket,R-Block GreaterKailash-I, NewDelhi–110048

BANKERS: HDFCBank,NewDelhi

REGISTRAR & SHARE TRANSFER AGENTS: LinkIntimeIndiaPrivateLimited 44CommunityCentre,2ndFloor,Naraina IndustrialArea,Phase-I,NearPVR, Naraina,NewDelhi-110028

24thAnnualGeneralMeeting09:45a.m,Tuesday,September25th,2018

PHDHouse-LakshmipatSinghaniaAuditorium,4/2,SiriInstitutionalArea,AugustKrantiMarg,NewDelhi-110016


94 Frontline Securities Ltd.

FSL

INDEX

Item Description Page No.

NoticeofAGM 1-12

Director’sReport 13-36

ManagementDiscussionandAnalysisreport 37-38

ReportonCorporateGovernance 39-61

BalanceSheet,Profit&LossAccountandCash 62-65 FlowStatement

AccountingPoliciesandNotestoAccounts 66-85

ShareholderInformationForm 86-87

ECSMandateForm 88-89

ProxyForm 90

AttendanceSlip 91

RouteMap 92



FSLNOTICE OF AGM

Noticeisherebygiventhatthe24th(TwentyFourth)AnnualGeneralMeetingofFrontline Securities Limited fortheFinancialYear2017-18willbeheldonTuesday,the25thdayofSeptember,2018at09:45A.M.atPHDHouse-LakshmipatSinghaniaAuditorium,4/2,Siri InstitutionalArea,AugustKrantiMarg,NewDelhi-110016totransactthefollowingbusiness:

ORDINARY BUSINESS:

1) Toreceive,considerandadopttheFinancialStatementsfortheFinancialYearended31stMarch,2018alongwithDirector’sReportandAuditor’sReportthereon.

2) Todeclaredividend@5%ontheequitysharesforthefinancialyearended31stMarch2018.

3) ToappointaDirectorinplaceofMrs.SarabjeetKaur(holdingDIN-00013395),whoretiresbyrotation,andbeingeligibleoffersherselfforre-appointment.

4) Ratification of Statutory Auditor

Toconsiderand,ifthoughtfit,topasswithorwithoutmodification(s),thefollowingresolutionasanORDINARY RESOLUTION.

“RESOLVED THATpursuanttotheprovisionsofSection139andotherapplicableprovisions,ifany,oftheCompaniesAct,2013andtheRulesframedthereunderasamendedfromtimetotime,theCompanyhereby ratifies the appointment ofM/s.Walecha Inder&Associates,CharteredAccountants, (FirmRegistrationNo.014205N),asStatutoryAuditorsoftheCompanytoholdofficefromtheconclusionofthisAnnualGeneralMeeting(AGM)tilltheconclusionoftheTwenty-FifthAnnualGeneralMeetingtobeheldfortheFinancialYear2018-2019atsuchremunerationplusservicetax,out-of-pocket,travellingandlivingexpenses,etc.asmaybemutuallyagreedbetweentheBoardofDirectorsandtheAuditor.

SPECIAL BUSINESS:

5) Sub-Division of equity shares from the Face Value of Rs. 10/- to Face Value of Rs. 5/- per share.

Toconsiderand,ifthoughtfit,topasswithorwithoutmodification(s),thefollowingResolutionasanORDINARY RESOLUTION:-

“RESOLVED THATpursuanttotheprovisionsofSection61andotherapplicableprovisions,ifany,oftheCompaniesAct,2013readwiththeRulesmadethereunder(includinganystatutorymodification(s)orre-enactment(s)thereofforthetimebeinginforce),andinaccordancewiththeprovisionsofArticlesofAssociationoftheCompanyandsubjecttootherapproval(s),consent(s),permission(s)andsanctions,ifany,requiredfromanyauthority,consentoftheMembersbeandisherebyaccordedtosub-divideeachEquityShareoftheCompanyhavingFacevalueofRs.10/-(RupeesTenonly)fullypaid-upinto2(Two)EquityShareshavingFaceValueofRs.5/-(RupeesFiveOnly)eachfullypaid-uponsuchdateasmaybefixedbytheBoardofDirectorsoftheCompanyforthispurpose(hereinreferredasthe“Record date”.)

RESOLVED FURTHER THATpursuant tosub-divisionof theEquitySharesof theCompany, theauthorized,issued,subscribedandpaidupEquityShareCapitalof1(one)EquityShareoftheFacevalueRs.10/-(RupeesTenonly)eachshallstandsub-dividedinto2(Two)EquitySharesoftheFacevalueofRs.5/-(RupeeFiveOnly)eachfromtheRecordDatesubjecttothetermsofMemorandumandArticlesofAssociationandshallrankparipassuinallrespectswithandcarrythesamerightsastheexistingfullypaid-upEquitySharesofRs.10/-(RupeesTenonly)eachoftheCompany.

RESOLVED FURTHER THATuponsub-divisionofEquitySharesoftheCompanyasaforesaid,theexistingsharecertificate(s)inrelationtotheexistingEquitySharesofFacevalueofRs.10/-(RupeesTenonly)eachheldinphysicalformshallbedeemedtohavebeenautomaticallycancelledandbeofnoeffectonandfromtheRecordDateandthatnoletterofallotmentshallbeissuedtotheallotteesofthenewEquitySharesofRs.5/-(RupeeFiveOnly)eachonsub-divisionandtheCompanymay,withoutrequiringthesurrenderofexistingsharecertificate(s),directlyissueanddispatchthenewsharecertificate(s)oftheCompany,inlieuofsuchexistingsharecertificate(s),withintheperiodprescribedorthatmaybeprescribedinthisbehalf,fromtimetotimeandinthecaseofsharesheldindematerializedform,thenumberofsub-dividedEquitySharesbecreditedtotherespectivebeneficiaryaccountsoftheshareholderswiththeDepositoryParticipants,inlieuoftheexistingcreditsrepresentingtheEquitySharesbeforesub-division.



FSL RESOLVED FURTHER THATtheBoardofDirectorsoftheCompanybeandisherebyauthorizedtofixaRecordDateandtotakesuchstepsasmaybenecessaryforobtainingapprovals,statutory,contractualorotherwise,inrelationtotheaboveandtosettleallmattersarisingoutofandincidentalthereto,andtoexecutealldeeds,applications,documentsandwritingsthatmayberequired,onbehalfoftheCompanyandgenerallytodoallsuchacts,deeds,mattersandthingsandtogive,fromtimetotime,suchdirectionsasmaybenecessary,properandexpedientorincidentalforthepurposeofgivingeffecttothisresolution.

RESOLVED FURTHER THATtheBoardbeandisherebyauthorizedtodelegatealloranyofitspowerstoanyCommitteethereofasitmaydeemappropriateinthisregard.”

6) Amendment to Clause V of the Memorandum of Association of the Company

Toconsiderand,ifthoughtfit,topasswithorwithoutmodification(s),thefollowingResolutionasanORDINARY RESOLUTION:-

“RESOLVED THATpursuanttotheprovisionscontainedinSection61andotherapplicableprovisions,ifany,oftheCompaniesAct,2013readwithRulesmadethereunder(includinganystatutorymodification(s),amendment(s)orre-enactment(s)thereof),theexistingClauseVoftheMemorandumofAssociationoftheCompanybeandisherebyamendedandsubstitutedthereofbythefollowingclause:

“TheAuthorisedShareCapitaloftheCompanyisRs.10,00,00,000/-(RupeesTenCrore)dividedinto2,00,00,000(TwoCrore)EquitySharesofRs.5/-(RupeesFiveOnly)eachfullypaid-up.”

RESOLVED FURTHER THATtheBoardofDirectorsoraCommitteethereofbeandisherebyauthorizedtodoallsuchacts,deeds,mattersandthingsasmaybeconsiderednecessary,desirableandexpedientforgivingeffecttothisresolutionand/orotherwiseconsideredbytheminthebestinterestoftheCompany.”

7) Alteration of Objects Clause in the Memorandum of Association of the Company

Toconsiderand,ifthoughtfit,topasswithorwithoutmodification,thefollowingresolutionasaSpecial Resolution:

“RESOLVEDthatpursuanttotheprovisionsofSection13andotherapplicableprovisions,ifany,oftheCompaniesAct,2013,includinganystatutorymodificationorre-enactmentthereofforthetimebeinginforceandtheRulesframedthereunder,asamendedfromtimetotime,andsubjecttotheapprovaloftheRegistrarofCompanies,Delhi(“ROC”)and/orofanyotherstatutoryorregulatoryauthority,asmaybenecessary,ClauseIII(ObjectsClause)oftheMemorandumofAssociationoftheCompany,beandisherebyalteredbyinsertingthefollowingsub-clausesunderPart-AofClauseIII,aftertheexistingsub-clause14:

15. “To let on lease, sub lease, mortgage, grant licenses, easements, options, virtual renting, co-working and other rights over and in any other manner deal with, or dispose of, all or any part of the undertaking, property (ies) and asset(s) (present and future) of the Company for any consideration and in particular (without prejudice to the generality) for any security or for a share of profit or royalty or other periodic deferred payment”.

16. To enter into franchise agreement(s) or contracts with various institution(s) , bodies, Government Companies, corporate(s), individual(s) in India or abroad to run, operate, construct, maintain restaurant(s)/café(s), hotel, education centre, day care etc or for carrying on all or any of the objects of the Company.

“RESOLVEDFURTHER THATpursuanttotheprovisionsofSection13andotherapplicableprovisions,ifany,of theCompaniesAct,2013, includinganystatutorymodificationor re-enactment thereof forthetimebeinginforceandtheRulesframedthereunder,asamendedfromtimetotime,andsubjecttotheapprovaloftheRegistrarofCompanies,Delhi(“ROC”)and/orofanyotherstatutoryorregulatoryauthority,asmaybenecessary,ClauseIII(ObjectsClause)oftheMemorandumofAssociationoftheCompany,beandisherebyalteredbyinsertingthefollowingsub-clausesunderPart-BofClauseIII,aftertheexistingsub-clause106:

107. To set up , purchase, take on lease, or otherwise acquire , establish, maintain, operate , run , manage, administer or let on lease hospitals, nursing homes ,clinics for in-door and out-door patients , rehabilitation centers , day care, healthcare centers and wellness centers.

108. To carry on, in India or elsewhere, either alone or jointly with one or more persons, companies, government, or other entities and bodies of any kind, the business of hotels of every kind and sort, including,



FSLbanquet facilities, conference facilities, meeting rooms, function halls, convention centers, shopping galleria, retail and service shops, offices, libraries, swimming pool, health club, spa, fitness centers, gym , beauty parlors, saloons, gaming center amusement and recreational facilities, parking, back offices, along with all the conveniences, amenities and facilities adjunct thereto and such other facilities as may be provided and to own, purchase, take over, acquire, erect, construct, build, set up, furnish, adapt, manage, franchise, run, use, maintain, operate or in any other manner and in all its aspects deal in, hotels/centers of every kind and sort.

“RESOLVED FURTHERthatanyDirectoroftheCompany,theChiefFinancialOfficerandtheCompanySecretary,beandareherebyseverallyauthorizedtofile,sign,verifyandexecuteallsuche-forms,papersordocuments,asmayberequiredanddoallsuchacts,deeds,mattersandthingsasmaybenecessaryandincidentalforgivingeffecttothisResolution,includingagreeingtoanychangetotheaforesaidClause4oftheMemorandumofAssociationoftheCompany,asmayberequiredbytheROCand/oranystatutory/regulatoryauthority.”

8) Re- Appointment of Mr. Gauri Shanker Pandey as the Whole time Director of the Company

Toconsiderandif thoughtfit, topasswithorwithoutmodification(s), thefollowingresolutionasanOrdinary Resolution:

“RESOLVED THATinaccordancewiththeprovisionsofSections196,197and203readwithScheduleVandotherapplicableprovisionsoftheCompaniesAct,2013andtheCompanies(AppointmentandRemuneration ofManagerial Personnel)Rules, 2014 (including any statutorymodification(s) or re-enactment(s)thereof,forthetimebeinginforce),approvalofthemembersbeandisherebyaccordedtore-appointMr.GauriShankerPandey(DIN:00050614)astheWholetimeDirectoroftheCompany,forafurtherperiodof5(five)yearsfromtheexpiryofhispresenttermofoffice,thatis,witheffectfrom16thMarch,2018,onsuchtermsandconditionsincludingremunerationassetoutintheexplanatorystatementannexedtotheNotice.

RESOLVED FURTHER THATthetermofofficeofMr.GauriShankerPandeyshallnotbeliabletoretirebyRotation.

RESOLVED FURTHER THATtheBoardofDirectorsoraCommitteethereofbeandisherebyauthorizedtodoallsuchacts,deeds,mattersandthingsasmaybeconsiderednecessary,desirableandexpedientforgivingeffecttothisresolutionand/orotherwiseconsideredbytheminthebestinterestoftheCompany.”

9) Increase in Remuneration payable to Ms. Richa Arora, Whole Time Director & Company Secretary of the Company.

Toconsiderandif thoughtfit, topasswithorwithoutmodification(s), thefollowingresolutionasanOrdinary Resolution:

“RESOLVED THATpursuanttotheprovisionsofSection197readwithScheduleVandotherapplicableprovision ofCompaniesAct, 2013 andCompanies (Appointment andRemuneration ofManagerialPersonnel)Rules,2014theapprovaloftheMembersoftheCompanybeandisherebyaccordedtoincreasetheremunerationpayabletoMs.RichaArora,WholeTimeDirector&CompanySecretaryw.e.fApril1st,2018onthetermsandconditionsassetoutintheexplanatorystatementattachedtotheNoticeofthisAnnualGeneralMeeting.

RESOLVED FURTHER THATforthepurposeofgivingeffecttothisresolutiontheBoardofDirectorsbeandareherebyseverallyand/orjointlyauthorisedtodoallsuchacts,deeds,mattersandthingsasmaybenecessary,properordesirabletogiveeffecttotheresolution”.

ByOrderoftheBoardofDirectors

For Frontline Securities Limited

Place: Noida Richa Arora

Date: 10.08.2018 Whole Time Director & Company Secretary

DIN: 07825684



FSLNOTES:

1. TheExplanatorystatementpursuanttoSection102oftheCompaniesAct,2013,inrespectofitemNo.4,5,6,7,8&9isannexedheretoandformsthepartoftheNotice.

2. A MEMBER ENTITLED TO ATTEND AND VOTE AT THE ANNUAL GENERAL MEETING IS ENTITLED TO APPOINT A PROXY TO ATTEND AND VOTE IN THE MEETING INSTEAD OF HIMSELF/HERSELF, AND THE PROXY NEED NOT BE A MEMBER OF THE COMPANY.Theinstrumentappointingtheproxy,inordertobeeffective,mustbedepositedattheCompany’sRegisteredOffice,dulycompletedandsigned,notlessthanFORTY- EIGHT HOURSbeforethecommencementofthemeeting.Proxiessubmittedonbehalfoflimitedcompanies,societies,etc.,mustbesupportedbyappropriateresolutions/authority,asapplicable.

ApersoncanactasproxyonbehalfofMembersnotexceedingfifty(50)andholdingintheaggregatenotmorethan10%ofthetotalsharecapitaloftheCompany.IncaseaproxyisproposedtobeappointedbyaMemberholdingmorethan10%ofthetotalsharecapitaloftheCompanycarryingvotingrights,thensuchproxyshallnotactasaproxyforanyotherpersonorshareholder.

AproxyFormisannexedhereto.

3. CorporatemembersintendingtosendtheirauthorizedrepresentativetoattendthemeetingarerequestedtosendtotheCompanyacertifiedcopyoftheBoardResolutionauthorizingtheirrepresentativetoattendandvoteontheirbehalfatthemeeting.

4. Members/Proxiesshouldbringtheattendanceslipsdulyfilledinandsignedforattendingthemeeting.

5. At the ensuingAnnualGeneralMeeting,Mrs. SarabjeetKaur (holdingDIN- 00013395) retires byrotationandbeingeligibleoffersherselfforre-appointment.TheinformationordetailstobeprovidedintermsofRegulation34(3)&ScheduleVoftheSEBIListingObligationsandDisclosureRequirements)Regulation,2015isprovidedintheexplanatorystatementannexedherewith.TheBoardofDirectorsoftheCompanycommendsthesaidre-appointment.

6. M/sLinkIntimeIndiaPrivateLimited,44CommunityCentre,2ndFloor,NarainaIndustrialArea,Phase-I,NearPVRNaraina,NewDelhi–110028istheRegistrarandShareTransferAgentforphysicalsharesoftheCompany.LinkIntimeisalsothedepositoryinterfaceoftheCompanywithbothNSDLandCDSL.

7. Membersholdingsharesinphysicalformarerequestedtoimmediatelynotifychangeintheiraddress,ifany,totheCompanyatitsRegisteredOffice,quotingtheirFolioNumber(s).MembersholdingsharesinelectronicformmayupdatesuchdetailswiththeirrespectiveDepositoryParticipant(s).

8. Foreffectivecommunication,shareholdersarerequestedtoupdatetheirdetailsrelatedtotheiraddressande-mailid.Forshareholdersholdingsharesinphysicalform,thesamemaybeprovidedinShareholder Information Form provided in theAnnualReport. Shareholders holding shares in demat form arerequestedtoupdatethesamewiththeirDepositoryParticipant(s).

9. Allmaterialdocumentsrelating to themattersproposed in theNotice,MemorandumandArticlesofAssociationoftheCompanyetcareopenforinspectiontothememberstillthedateoftheAnnualGeneralMeetingfrom11a.m.to1p.m.onallworkingdaysattheregisteredofficeoftheCompany.

TheRegisterofDirectorsandKeyManagerialPersonnelandtheirShareholdingmaintainedundersection170oftheAct,theRegisterofContractsorArrangementsinwhichthedirectorsareinterested,maintainedundersection189oftheActwillbeavailableforinspectionbythemembersattheAGM.

10. EveryMemberentitledtovoteatthemeeting,shallbeentitledduringtheperiodbeginningtwentyfourhoursbeforethetimefixedforcommencementofthemeetingandendingwiththeconclusionofthemeetingtoinspecttheproxieslodgedatanytimeduringthebusinesshoursofthecompany,providednotlessthanthreedays’Noticeinwritingofsuchintentionisgiventothecompany.

11.TheRegisterofMembersandShareTransferBooksoftheCompanywillremainclosedfromWednesday,September19th,2018,toTuesday,September25th,2018(bothdaysinclusive).



FSL12.FinalDividendonequityshares@5%onthepaid-upequitysharecapitali.e.Re0.50perequityshareasrecommendedbytheBoardofDirectors,ifdeclaredbytheshareholdersatthe24thAnnualGeneralMeeting,willbepaid to thoseshareholderswhosenamesappearon theRegisterofMembersof theCompanyasonSeptember19th,2018aftergivingeffecttoallvalidtransfersinPhysicalFormlodgedwiththeCompanyandRTAonorbefore18thSeptember,2018andinrespectofthememberswhosesharesareheldinelectronicform,tothoseBeneficialOwnersasperthedetailsfurnishedbytheDepositoriesatthecloseofbusinesshourson18thSeptember,2018.

13.TheSecuritiesandExchangeBoardofIndia(SEBI)hasmandatedthesubmissionofPermanentAccountNumber(PAN)byeveryparticipantinthesecuritiesmarket.Membersholdingsharesinelectronicformare,accordingly,requestedtosubmittheirPANtotheDepositoryParticipantwithwhomtheymaintaintheirdemataccounts.MembersholdingsharesinphysicalformshouldsubmittheirPANtotheCompany.

14.PursuanttoSection123and124ofCompaniesAct,2013,theCompanyhastransferredonduedates,theunclaimedFinalDividendforthefinancialyearendedon31stMarch,2010totheInvestorEducationProtectionFundestablishedbytheCentralGovernment.Further,shortlytheCompanywillinitiatetheprocess of transfer of unclaimeddividendpertaining to thefinancial year 2010-2011 to the InvestorEducationProtectionFundinNovember,2018.

Further,PursuanttotheSection124oftheCompaniesAct,2013,theCompanyisrequiredtotransferthesharesinrespectofwhichnodividendhasbeenclaimforsevenormoreconsecutiveyearstotheInvestorEducationProtectionFundestablishedbythecentralGovernment.ItmaybealsonotedallthecorporatebenefitaccruingontheseShareslikebonus,dividends,sub-divisionetcifanyshallbecreditedtosaidfund.TheCompanywilltransfersaidsharesintheMonthofNovember,2018.

Membersarethereforerequestedtoen-cashtheirdividendwarrantsimmediatelyfortheyear2010-2011andsubsequentfinancialyears.MembersarerequestedtowritetotheCompanyand/orRegistrarandShareTransferAgents,ifanydividendwarrantisdueandpendingtobepaidsothatfresh/revalidatedwarrantscouldbeissuedbytheCompany.

15. Payment of Dividend through ECS:

a) TheSecurities&ExchangeBoardofIndia(SEBI)andtheMinistryofCorporateAffairshavemadeitmandatoryforalltheListedCompaniestoofferElectronicClearingServices(ECS)facilitiesforpaymentofdividend,whereverapplicable.Inviewoftheabove,

• ShareholdersholdingsharesinphysicalformareadvisedtosubmitparticularsoftheirbankaccountintheECSMandateForm,annexedtothisreportlatestbyTuesday,September18th,2018,totheCompanySecretaryatB-22,Sector-4,Noida,UttarPradesh-201301orM/sLinkIntimeIndiaPrivateLimitedat44CommunityCentre,2ndFloor,NarainaIndustrialArea,Phase-I,NearPVRNaraina,NewDelhi–110028.

• Shareholdersholdingsharesindematformareadvisedtoinformtheparticularsoftheirbankaccounttotheirrespectivedepositoryparticipants.

16.Toprovidespeedyredressalofinvestorgrievances,theCompanyhasdesignatedE-mailID’[email protected]/secretarial@fsltechnologies.comexclusivelyforregisteringcomplaints/grievancesbyinvestors.

17.AnyqueriesrelatingtoAccountsmustbesenttothecompanyatleast10daysbeforethedateoftheAnnualGeneralMeeting.

18.FortheConvenienceoftheMembers,RouteMaptothevenueoftheAGMformspartoftheAnnualReportandisalsoavailableonthewebsiteoftheCompany.

19. Request to Shareholders:

a) Tosupportthe‘GreenInitiative’Memberswhohavenotregisteredtheire-mailaddressesarerequestedtoregisterthesamewithLinkIntimeIndiaPrivateLimited(RTA)/Depositories/theCompany.

b) ShareholdersarerequestedtonotethatcopiesoftheAnnualReportwillnotbedistributedatthevenueof



FSLthemeeting.Shareholders/Proxyholders/AuthorizedRepresentativesare,therefore,requestedtobringtheircopiesoftheAnnualReporttothemeeting.TheAnnualReportalongwithformatsisbeingpostedontheCompany’swebsiteatwww.fslindia.com.

c) Electroniccopyof theAnnualReportof the24thAnnualGeneralMeetingof theCompany inter-aliaindicatingtheprocessandmannerofelectronicvoting(e-voting)alongwiththeAttendanceslipandroutemapisbeingsenttoallmemberswhosee-mailidsareregisteredwithCompany/DP/RTAforthecommunicationpurposes,unlessanymemberhasrequestedforahardcopyofthesame.Formemberswhohavenotregisteredtheiremailaddress,physicalcopyoftheAnnualReportalongwithNotice,Attendanceslip,ProxyformandRoutemapisbeingsentinpermittedmode.

d) ShareholdersmayalsonotethattheNoticeofthe24thAGMandtheAnnualReportforFinancialYear2017-18will also be available on theCompany’swebsite i.ewww.fslindia.com for download.ThephysicalcopiesoftheaforesaiddocumentswillalsobeavailableattheCompany’sRegisteredOfficeatM-6,IIndFloor,M-BlockMarket,GreaterKailash-II,NewDelhi-110048forinspectionduringnormalbusinesshoursonworkingdays.Evenafterregisteringfore-communication,shareholdersareentitledtoreceivesuchcommunicationinphysicalform,freeofcost,uponmakingaspecificrequestbypost.TheshareholdersmayalsosendtheirrequeststotheCompany’sEmail-id’s:[email protected]/[email protected].

e) Shareholdersmaykindlynotethatnogift/giftcouponwillbedistributedatthemeeting.

20. Voting for transaction of Business through Electronic Means:

• IncompliancewiththeprovisionsofSection108oftheCompaniesAct,2013andtheRule20oftheCompanies (Management andAdministration)Rules, 2014 andRegulation44of theSEBI (ListingObligations andDisclosureRequirements),Regulations, 2015 andSecretarial Standard onGeneralMeeting(SS-2)issuedbyICSI,theCompanyisprovidingthefacilitytoShareholdertocasttheirvoteelectronically,throughthee-votingservicesprovidedbyCDSL,onalltheresolutionssetforthinthisnotice.

• Memberswhohavecasttheirvotebyremotee-votingshallnotbeentitledtocasttheirvoteagainattheAnnualGeneralMeeting.

• Thevotingperiodbeginsat9:00a.m.on22ndSeptember,2018andendsat5:00p.m.on24thSeptember,2018.During this period shareholders of theCompany, holding shares either in physical formor indematerializedform,asonthecut-offdatei.e18thSeptember,2018,maycasttheirvoteselectronically.Thee-votingmoduleshallbedisabledbyCDSLforvotingthereafter.Oncethevoteonaresolutioniscastbytheshareholder,theshareholdershallnotbeallowedtochangeitsubsequently.

Theprocedureandinstructionstomembersforvotingelectronicallyareasunder:

1. Theshareholdersshouldlogontothee-votingwebsite“www.evotingindia.com”.

2. ClickonShareholders/ Members

3. NowEnteryourUserID

a. ForCDSL:16digitsbeneficiaryID,

b. ForNSDL:8CharacterDPIDfollowedby8DigitsClientID,

c. MembersholdingsharesinPhysicalFormshouldenterFolioNumberregisteredwiththeCompany.

4. NextentertheImageVerificationasdisplayedandClickonLogin.

5. Ifyouareholdingsharesindematformandhadloggedontowww.evotingindia.comandvotedonanearliervotingofanycompany,thenyourexistingpasswordistobeused.

6. Ifyouareafirsttimeuserfollowthestepsgivenbelow:



FSL

7. Afterenteringthesedetailsappropriately,clickon“SUBMIT”tab.

8. MembersholdingsharesinphysicalformwillthendirectlyreachtheCompanyselectionscreen.However,membersholdingsharesindematformwillnowreach‘PasswordCreation’menuwhereintheyarerequiredtomandatorilyentertheirloginpasswordinthenewpasswordfield.Kindlynotethatthispasswordistobealsousedbythedematholdersforvotingforresolutionsofanyothercompanyonwhichtheyareeligibletovote,providedthatcompanyoptsfore-votingthroughCDSLplatform.Itisstronglyrecommendednottoshareyourpasswordwithanyotherpersonandtakeutmostcaretokeepyourpasswordconfidential.

9. ForMembersholdingsharesinphysicalform,thedetailscanbeusedonlyfore-votingontheresolutionscontainedinthisNotice.

10.ClickontheEVSNfortherelevant<CompanyName>onwhichyouchoosetovote.

11.Onthevotingpage,youwillsee“RESOLUTIONDESCRIPTION”andagainstthesametheoption“YES/NO”forvoting.SelecttheoptionYESorNOasdesired.TheoptionYESimpliesthatyouassenttotheResolutionandoptionNOimpliesthatyoudissenttotheResolution.

12.Clickonthe“RESOLUTIONSFILELINK”ifyouwishtoviewtheentireResolutiondetails.

13.Afterselecting theresolutionyouhavedecidedtovoteon,clickon“SUBMIT”.Aconfirmationboxwillbedisplayed.Ifyouwishtoconfirmyourvote,clickon“OK”,elsetochangeyourvote,clickon“CANCEL”andaccordinglymodifyyourvote.

14.Onceyou“CONFIRM”yourvoteontheresolution,youwillnotbeallowedtomodifyyourvote.

15.Youcanalsotakeaprintofthevotescastbyclickingon“Clickheretoprint”optionontheVotingpage.

16.IfademataccountholderhasforgottentheloginpasswordthenEntertheUserIDandtheimageverificationcodeandclickonForgotPassword&enterthedetailsaspromptedbythesystem.

17.Note for Non – Individual Shareholders and Custodians

• Non-Individualshareholders(i.e.otherthanIndividuals,HUF,NRIetc.)andCustodianare requiredtologontowww.evotingindia.comandregisterthemselvesasCorporate.

• AscannedcopyoftheRegistrationFormbearingthestampandsignoftheentityshouldbe [email protected]

• AfterreceivingthelogindetailsaComplianceUsershouldbecreatedusingtheadminlogin andpassword.TheComplianceUserwouldbeabletolinktheaccount(s)forwhichtheywish tovoteon.

For Members holding shares in Demat Form and Physical Form

PAN

DividendBankdetails

OrDateofBirth(DOB)

EntertheDividendBankDetailsorDateofBirth(indd/mm/yyyyformat)asrecordedinyourdemataccountorintheCompanyrecordsinordertologin.

• IfboththedetailsarenotrecordedwiththeDepositoryorcompanypleaseenter themember id/ folionumber in theDividendBankdetailsfieldasmentionedininstruction3.

Enteryour10digit alpha-numeric*PAN issuedby IncomeTaxDepartment(Applicableforbothdematshareholdersaswellasphysicalshareholders)

• Memberswhohavenotupdated/RegisteredtheirPANwiththeCompany/DepositoryParticipantarerequestedtousethesequencesnumberindicatedinthePANField,fromthestickerpastedonthecoverpageoftheAnnualReport.



FSL • Thelistofaccountslinkedintheloginshouldbemailedtohelpdesk.evoting@cdslindia.com andonapprovaloftheaccountstheywouldbeabletocasttheirvote.

• AscannedcopyoftheBoardResolutionandPowerofAttorney(POA)whichtheyhaveissuedinfavoroftheCustodian,ifany,shouldbeuploadedinPDFformatinthesystemforthescrutinizertoverifythesame.

18.Shareholderscanalsocast theirvoteusingCDSL’smobileappm-Votingavailableforandroidbasedmobiles.Them-VotingappcanbedownloadedfromGooglePlayStore.AppleandWindowsphoneuserscanalsodownloadtheapplication.Pleasefollowtheinstructionsaspromptedbythemobileappwhilevotingonyourmobile.

19.Incaseyouhaveanyqueriesorissuesregardinge-voting,youmayrefertheFrequentlyAskedQuestions(“FAQs”)ande-votingmanualavailableatwww.evotingindia.com,[email protected].

20.TheScrutinizershallimmediatelyaftertheconclusionofvotingatthegeneralmeeting,willfirstcountthevotescastatthemeetingandthereafterunblockthevotescastthroughremotee-votinginthepresenceofatleasttwowitnessesnotintheemploymentofthecompanyandshallmake,notlaterthan2daysoftheconclusionoftheAGM,aconsolidatedscrutinizer’sreportofthetotalvotescastinfavouroragainst,ifany,totheChairmanorpersonauthorizedbytheBoardwhoshallcountersignthesame.



RICHA ARORA

Place: Noida Whole Time Director & Company Secretary

Date: 10.08.2018 DIN:07825684



FSLEXPLANATORY STATEMENT IN RESPECT OF THE SPECIAL BUSINESS PURSUANT TO SECTION 102 OF THE COMPANIES ACT, 2013Item no-4:

ThisexplanatorystatementisprovidedthoughstrictlynotrequiredasperSection102oftheAct.

Ratification of appointment of Auditor –M/sWalecha Inder&Associates,CharteredAccountants(FRN:014205N)was appointed asStatutoryAuditors of theCompany for the period of Five yearscommencingfrom1stApril,2017toholdtheofficefromtheconclusionof23rdAnnualgeneralMeetingoftheCompanytilltheconclusionof28thAnnualGeneralMeetingtobeheldin2022.

AspertheprovisionsofSection139oftheCompaniesAct,2013,theirappointmentfortheabovetenureissubjecttoratificationbymembersateveryAnnualGeneralMeeting.Accordingly,approvalofmembersforratificationofappointmentisbeingsoughtassetoutinItemNo.4oftheNotice.

NoDirectors/keymanagerialpersonneloftheCompanyortheirrespectiverelativesaredeemedtobeconcernedorinterestedintheResolutionmentionedatItemNo.4oftheNoticeexcepttotheextentofsharesheldbythem,ifany,intheCompany.

TheBoardofDirectorrecommendstheOrdinaryResolutionsetforthinitemNo.4oftheaccompanyingnoticefortheapprovaloftheMembers.

Item No. 5 & 6:

TheEquitySharesoftheCompanyarelistedandbeingtradedontheBSELtd.Withaviewtoenhancethe investorbaseof thecompanybyencouraging theparticipationof thesmall investorsandalso toincreasetheliquidityoftheequitysharesoftheCompany,theBoardofDirectorsatitsmeetingheldon28thMay,2018hasrecommendedtosub-dividethenominalvalueoftheequityshareoftheCompanyfromRs.10/-persharetoRs.5/-pershare,subjecttoapprovalofMemberattheensuingAnnualGeneralMeeting.

Accordingly,eachfullypaidupequityshareofnominalvalueRs.10/-(RupeesTenOnly)oftheCompany,existingontherecorddateasmaybefixedbytheBoardofDirectors,shallstandssubdividedinto2(two)equitysharesofNominalValueofRs.5/-(RupeeFiveonly)eachfullypaidup.

Therecorddatefortheaforesaidsubdivisionoftheequityshareswillbefixedaftertheapprovaloftheshareholdersisobtained,pursuanttothisAnnualGeneralMeeting.

Consequent upon the sub-division of shares, theAuthorised ShareCapital of theCompany ofRs.10,00,00,000/-(RupeesTenCroresonly)wouldcompriseof2,00,00,000(TwoCrores)EquitySharesofRs.5/-(RupeesFiveonly)eachfullypaid-upandtheissued,subscribedandpaidupcapitaloftheCompanyisdividedinto1,18,55,692(OneCroreEighteenLakhsFiftyFiveThousandSixHundredandNinetyTwo)equitysharesofRs.5/-(RupeesFiveonly)eachfullypaid-upamountingtoRs.5,92,78,460/-(RupeesFiveCroreNinetyTwolakhsSeventyEightThousandFourHundredandSixtyonly).

TheproposedsubdivisionofequitysharesoftheCompanyfromRs.10/-(RupeeTenOnly)perequitysharetoRs.5/-(RupeesFiveOnly)perequityshare,requiresconsequentialalterationoftheMemorandumofAssociationoftheCompany.Accordingly,ClauseVoftheMemorandumofAssociationisproposedtobealteredinthemannersetoutinResolutionatItemNo.6.

TheBoardrecommendstheitemNo.5(OrdinaryResolution)andItemNo.6(OrdinaryResolution)ofthenotice,forapprovaloftheMembers.

AcopyoftheMemorandumofAssociationoftheCompanyalongwiththeproposedamendmentsisavailableforinspectionbythemembersattheregisteredOfficeoftheCompanyonallworkingdaysduringtheofficehoursoftheCompanytilltheconclusionoftheAnnualGeneralMeeting.

NoDirectors/keymanagerialpersonneloftheCompanyortheirrespectiverelativesaredeemedtobeconcernedorinterestedintheResolutionsmentionedatItemNo.5and6oftheNoticeexcepttotheextentofsharesheldbythem,ifany,intheCompany.



FSL

Item no. 8:

TheBoardofDirectorsoftheCompany,(“theBoard”)has,subjecttoapprovalofmembers,reappointedMr.GauriShankerPandey(DIN:00050614)asaWholeTimeDirector,forafurtherperiodof5(five)years.Thisre-appointmentshallbeeffectivefrom16thMarch,2018ontermsandconditionsincludingremunerationassetoutbelow:

Components Amount Per Month (in Rs.) Basic 40,000 HRA 15,000 OtherAllowance 2,200 ConveyanceAllowance 1,600 Gross Salary 58,800 Bonus(PayableQuarterly) 1,400 PF(EmployeeContribution) 4,800 CTC ( Cost to Company) 65,000

Itisproposedtoseekthemembers’approvalforthere-appointmentofandremunerationpayabletoMr.GauriShankerPandey(DIN:00050614),intermsoftheapplicableprovisionsoftheAct.

Mr.GauriShankerPandey(DIN:00050614)satisfiesalltheconditionssetoutinPart-IofScheduleVtotheActasalsoconditionssetoutundersubsection(3)ofSection196oftheActforbeingeligibleforhisreappointment.HeisnotdisqualifiedfrombeingappointedasaDirectorintermsofSection164oftheAct.

Thetermsofremuneration,asstatedabovemaybetreatedasanabstractoftermsofremunerationundersection190oftheCompaniesAct,2013.

NoDirectors/keymanagerialpersonneloftheCompanyortheirrespectiverelativesexceptMr.GauriShankerPandeyaredeemedtobeconcernedorinterestedintheresolutionmentionedatItemNo.8oftheNoticeexcepttotheextentofsharesheldbythem,ifany,intheCompany.

Item no. 7:

TheCompany is presently engaged in the business of Investments.With a view tomaximizing overallstakeholders’value,themanagementofthecompanyhasbeenexploringnewavenuesofbusinesswhichwillgenerate revenue,whichmaybeconvenientlyandadvantageouslycombinedwithexistingbusinessof theCompany.InordertoelaborateandclarifytheexistingbusinessoftheCompanyandtoenabletheCompanytoundertaketheseadditionalbusinessesasstatedintheresolution,itisproposedtoamendtheObjectsClauseoftheMemorandumofAssociationoftheCompany.

Intheviewofthis,theBoardofDirectorsinitsmeetingheldon10thAugust,2018,hasdecidedtoamendtheMemorandumofAssociationoftheCompanyandseeksshareholdersapproval.

TheentiresetofproposednewMemorandumofAssociationisavailableonthewebsiteoftheCompanyi.e.www.fslindia.com.Memberscanalsoobtainacopyof thesamefromtheCompany’sregisteredofficeorcorporateoffice.

Membersarerequestedtonotethattheamendmentissubjecttotheintimation/approvalgiven/grantedby/totheSecuritiesExchangeBoardofIndia(“SEBI”),theRegistrarofCompanies,Delhi,MinistryofCorporateaffairsandsuchotherregulatoryauthorities,asmayberequired.

NoDirectors/keymanagerialpersonneloftheCompanyortheirrespectiverelativesaredeemedtobeconcernedorinterestedintheResolutionsmentionedatItemNo.7oftheNoticeexcepttotheextentofsharesheldbythem,ifany,intheCompany.

TheBoardrecommendstheSpecialResolutionassetoutintheitemNo.7oftheaccompanyingnotice,forapprovaloftheMembers.



FSL TheBoardofDirectorrecommendstheOrdinaryResolutionsetforthinitemNo.8oftheaccompanyingnoticefortheapprovaloftheMembers.

Item no. 9:

Intheviewofenhancedresponsibilitygiven,theBoardproposedtoincreasethesalarypayabletoMs.RichaArora,WholeTimeDirectorandCompanySecretaryoftheCompanyw.e.f01.04.2018aspertherevisedsalarystructuregivenbelow.TheremunerationissubjecttotheapprovaloftheMembersoftheCompanyintheensuingAnnualGeneralMeeting.

Thedetailsofrevisedremunerationare:

Components Amount Per Month (in Rs.)

Basic 12,500 HRA 12,500 TransportAllowance 1,600 OtherAllowance 19,875 Gross Salary 46,475 Gratuity 625 Bonus(PayableQuarterly) 1400 PF(EmployeeContribution) 1500 CTC ( Cost to Company) 50,000 All other benefit and entitlement, if any as per the policy of the Company.

Thetermsofremuneration,asstatedabovemaybetreatedasanabstractoftermsofremunerationundersection190oftheCompaniesAct,2013.

NoDirectors/keymanagerialpersonneloftheCompanyortheirrespectiverelativesexceptMs.RichaAroraaredeemedtobeconcernedorinterestedintheResolutionsmentionedatItemNo.9oftheNoticeexcepttotheextentofsharesheldbythem,ifany,intheCompany.

TheBoardofDirectorsrecommendstheordinaryresolutionsetforthinitemNo.9oftheaccompanyingnoticefortheapprovalofMembers.



FSL

DETAILS OF DIRECTORS SEEKING APPOINTMENT/REAPPOINTMENT AT THE FORTHCOMING ANNUAL GENERAL MEETING

[(Pursuant to Regulation 36(3) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015)]



RICHA ARORA

Place: Noida Whole Time Director & Company Secretary

Date: 10.08.2018 DIN:07825684

Mrs. Sarabjeet Kaur01/02/19764201/07/200216YearsofexperienceinCompanySecretaryProfessionaswellasL.L.BAsmentionedintheCorporateGovernanceReportNILC.S,L.L.B0

0

Mr. Gauri Shanker Pandey13/07/19576016/03/201330YearsofExperienceasHumanResourceandAdministrationHead.

AsmentionedintheCorporateGovernanceReportNILB.Com2

0

Name of the DirectorDateofBirthAgeDateofAppointmentExperienceinSpecificFunctionalArea

Remunerationsoughtandlastdrawn

RelationshipwithotherDirectorsQualificationDirectorshipinotherPublicLimitedCompanies/excludingPrivateCompanieswhicharesubsidiaryofPublicCompanyMember/ChairmanofCommitteeoftheBoardoftheotherPublicLimitedCompaniesonwhichsheisDirector



FSLDIRECTOR’S REPORT

Dear Members,

TheDirectorsofyourCompanytakepleasureinpresentingthisTwentyFourthAnnualReportalongwiththeAuditedFinancialStatementsforthefinancialyearendedMarch31st,2018.

FINANCIAL RESULTS

ThefinancialperformanceoftheCompany,fortheyearendedMarch31st,2018issummarizedbelow:

REVIEW OF OPERATIONS

Duringtheyearunderreview,theCompanyhadachievedaGrossIncomeofRs.1,296.07LakhsasagainstRs560.00Lakhsinthepreviousyear.TheprofitbeforetaxstandsatRs.1,161.92LakhsasagainstRs.491.65Lakhsinthepreviousyear.

TheimprovementintheprofitabilityoftheCompanyhadbeenduetoimprovementinIndianStockMarket.Duringtheyearunderreview,NIFTYgrewfrom9,220.60ason1stApril,2017to10,113.70ason31stMarch,2018.Duetothis,theinvestmentgavebetterreturns,duringcurrentyearleadingtocapitalgainsofRs.860.65lakhsagainstcapitalgainsofRs.419.61duringthefinancialyear2016-17.Besides,thebusinessofMutualFunddistributionhasgrownsubstantiallyleadingtocommissionincomegrowthtoRs.309.52lakhsagainstRs.22.87lakhsduringthefinancialyear2016-17.

Particulars

Gross Income

Profit before Depreciation and Amortization Expenses,

Finance Costs and Tax Expenses

FinanceCosts

Depreciation&Amortizationexpenses

Profit before Tax

CurrentTax

MATCredit

DeferredTax

Profit for the year

Add:BalanceinProfit&LossAccount

Total

Less: Appropriation:

BuyBackofShares

TransferredtoRBIReserve

ProposedDividendonequityshares

ProposedDividendTax

ContingencyProvisionagainstStandardAssets

ShortProvisionmadeinthepreviousyear

Closing Balance

2017-18

1296.07

1194.19

(11.34)

(20.93)

1161.92

(231.02)

65.09

0.41

996.40

2,163.69

3160.09

542.94

199.28

29.64

6.09

0.15

-

2381.99

2016-17

560.00

495.08

(0.01)

(3.42)

491.65

(88.92)

46.85

0.39

449.97

1,845.96

2295.93

-

89.99

35.93

7.52

(1.26)

0.06

2163.69

(Rs In Lakhs)



FSLSTATE OF COMPANY AFFAIRS

Duringtheyearunderreview,theCompanyoperatesinonegeographicalsegmenti.e.India&hasidentifiedtwobusiness segments i.e. Segment-Iwhich isConsultancy,Commission&Brokerage andSegment-IIInvestmentsinBonds,Fixeddeposits&Loan&Advances.

FUTURE OUTLOOK

ThevariousstepstakenbytheGovernmentinthelast3yearshavecreatedabetterbusinessenvironmentandbarringunforeseencircumstances,weexpectabettercapitalmarketincomingyearswhichwillimproveCompany’sperformances.Besides,theCompanyhasstartedaddingnewcustomerstothebusinessofMutualFundDistribution.Howeverthepriceofcrudeoilisincreasinginthecurrentperiod.Besides,theUSinterestRateisalsoincreasing.Duetoglobalstrategicsituations,increaseincrudeoilprices,USinterestratesandtheireconomy,IndianStockmarketmayremainvolatileduringthecurrentyear(i.e.2018-19).Hencetheincomefrominvestmentsmayremainlittlesubdued/uncertain.HoweverthebusinessofMutualFundDistributionisgivenmorestress,weexpecttodowellinthisregardduringthecurrentyear.

MATERIAL EVENTS OCCURING BETWEEN THE END OF FINANCIAL YEAR AND DATE OF REPORT

TheBoardofDirectorshasrecommendedthesub-divisionofequitysharesoftheCompanyinitsBoardMeetingheldon28thMay,2018fromRs.10/-(RupeeTenOnly)perequitysharetoRs.5/-(RupeesFiveOnly)perequityshare,subjecttoapprovalofMembersatensuingAnnualGeneralMeeting.

RBI GUIDELINES

TheCompanyhascompliedwiththeRegulationsoftheReserveBankofIndiaason31stMarch,2018,asareapplicabletoitasaNon-BankingFinancialCompany.

DEPOSITS

TheCompanyhasnotacceptedanypublicdepositsduringtheyear,withinthemeaningofSection73oftheCompaniesAct,2013readwithCompanies(AcceptanceofDeposits)Rules2014andSection2(i)(xii)oftheNon-BankingFinancialCompaniesAcceptanceofPublicDeposits(ReserveBank)Directions1998.

TherewasnounclaimeddepositoroverduedepositwiththeCompanyason31.03.2018.

RESERVE FUND

Aspersection45ICofRBIAct1934,theCompanyhastransferredRs.199.28LakhsinRBIreservefundi.e.aggregatingof20%ofitsnetprofit.

DIVIDEND

Consideringprofitsduringthecurrentyear,theBoardhasrecommendedafinaldividend@5%(i.e.Rs.0.5perEquityShareafterBuyBackoftheCompany)forthefinancialyearended31stMarch,2018.

LISTING OF EQUITY SHARES

TheequitysharesoftheCompanyarelistedontheBombayStockExchangeLimited,PhirozeJeejeebhoyTowers,DalalStreet,Mumbai-400001.TheListingFeesforthefinancialyearunderreviewhasbeenpaidbytheCompany.

SHARE CAPITAL

During theyearunder review, theCompanyhasneither issuedShareswithdifferentialvoting rights,norgrantedstockoptionandSweatEquityShares.

BUY BACK OF SHARES

TheBoardofDirectorsat itsmeetingon20thOctober,2017hasapprovedaproposalfor thecompanytoBuybackupto12,77,866fullypaidupequitysharesoffacevalueRs.10/-eachfromtheeligibleshareholdersofthecompanyforanamountnotexceedingRs.7,92,27,692/-.TheShareholdersoftheCompanyapprovedtheproposalofBuybackofequitysharesthroughpostalballotthatconcludedon8thDecember,2017.SincetheBuyBackofferwasundersubscribed,theCompanyhasboughtbackandextinguished12,58,843Equity



FSLshares inFebruary2017.TheBuybackwasoffered toall shareholdersason recorddate22ndDecember,2017onaproportionatebasisthroughtenderofferrouteinaccordancewiththeprovisionsoftheSEBI(BuybackofSecurities)Regulations,1998andCompaniesAct,2013.TheCompanyhasutilizedasumofRs.2,37,54,125/-fromitsSecurityPremiumAccounttotheextentavailableandRs.5,42,94,141/-fromitsProfit&LossAccounttopayRs7,80,48,266/-toitsshareholderfortheBuyBackofShares.

DIRECTORS

TheBoardoftheCompanyisstructuredinaccordancewiththerequirementsofCompaniesAct,2013andtheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015.ThereisadequatenumberofIndependentDirectorsontheBoardoftheCompany.

TheDetailsofBoardComposition&itsMeetingsaregivenintheCorporateGovernanceReport.

InaccordancewiththeprovisionsoftheCompaniesAct,2013andtheArticlesofAssociationoftheCompany,Mrs.SarabjeetKaur,DirectoroftheCompany,retiresbyrotationattheensuingAnnualGeneralMeetingandbeingeligiblehasofferedherselfforre-appointment.

Further,theBoardhasre-appointedMr.GauriShankerPandey,asaWholetimeDirectoroftheCompanyfortheperiodoffiveyearsw.e.f16thMarch,2018subjecttoapprovalofMembersintheensuingAnnualGeneralMeeting.

BriefresumeandotherdetailsoftheDirectorsbeingre-appointedasrequiredundertheSecuritiesExchangeBoardofIndia(ListingObligationsAndDisclosuresRequirement)Regulations,2015areprovidedintheExplanatoryStatementannexedtotheNotice.

Duringtheyearunderreview,Nine(9)Meetingswereconvenedandheld,detailsofwhichareprovidedintheReportonCorporateGovernance.

KEY MANEGERIAL PERSONNEL

Presently,Mr.MayankAgarwal,CharteredAccountantistheChiefFinancialOfficeroftheCompany.HewasappointedastheChiefFinancialOfficerw.e.f21.10.2017duetotheresignationofMs.SwarnaGowriS.on21.10.2017.

DECLARATION FROM INDEPENDENT DIRECTORS

TheCompanyhas receiveddeclaration fromDr.CharanjeetSinghBedi,Mr.BaljitSinghBedi,Mr.ArunK.JainandMr.AtulK.Jain,theIndependentDirectorsoftheCompanyconfirmingthattheymeetwiththecriteriaofIndependenceasprescribedundertheCompaniesAct,2013andtheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015.

POLICY ON APPOINTMENT & REMUNERATION

InrespectofNominationandRemunerationofDirectors,theCompanyhasadoptedthefollowingpolicies:

a) PolicyforselectionofDirectorsanddeterminingDirector’sindependence:and

b) RemunerationPolicyforDirectors,KeyManagerialPersonnelandotheremployees.

TheabovementionedpoliciesoftheCompanyareattachedherewithmarkedasAnnexureIandAnnexureII.

FAMILIARISATION PROGRAMME FOR INDEPENDENT DIRECTORS

TheCompanyhasputinplaceafamiliarizationprogramfortheIndependentDirectors,theirroles,rights,responsibilitiesintheCompanyandrelatedmatters.QuarterlyupdatesonrelevantstatutorymattersarealsoinformedtoDirectors.

DetailsoffamiliarizationprogramareavailableonthewebsiteoftheCompanyatthelinkhttp://fslindia.com/pdf/FAMILIARIZATION+PROGRAMMES.pdf.

PERFORMANCE EVALUATION

PursuanttotheprovisionsofCompaniesAct,2013andSecuritiesExchangeBoardofIndia(ListingObligationsandDisclosureRequirements)Regulations,2015,theBoardhascarriedoutannualperformanceevaluation



FSLofitsownperformance,itscommitteesandalltheDirectorsindividually.

TheevaluationofNon–IndependentDirectors,ChairmanandtheBoardasawholewasdoneataseparatemeetingbytheIndependentDirectors.

DIRECTORS RESPONSIBILITY STATEMENT

YourDirectorsmakesthefollowingstatementintermsofSection134(3)ofCompaniesAct,2013:

a. InthepreparationoftheannualaccountsfortheyearendedMarch31st,2018,theapplicableaccountingstandardsreadwithrequirementssetoutunderScheduleIIItotheAct,havebeenfollowedandtherearenomaterialdeparturesfromthesame;

b. TheDirectorshaveselectedsuchaccountingpoliciesandappliedthemconsistently,andmadejudgmentsandestimatesthatarereasonableandprudentsoastogiveatrueandfairviewofthestateofaffairsoftheCompanyasatMarch31st,2018andoftheprofitoftheCompanyfortheyearendedonthatdate;

c. TheDirectorshavetakenproperandsufficientcareforthemaintenanceofadequateaccountingrecordsinaccordancewiththeprovisionsoftheActforsafeguardingtheassetsoftheCompanyandforpreventinganddetectingfraudandotherirregularities;

d. TheDirectorshavepreparedtheannualaccountsona‘goingconcern’basis;

e. TheDirectorshavelaiddowninternalfinancialcontrolstobefollowedbytheCompanyandthatsuchinternalfinancialcontrolsareadequateandareoperatingeffectively;and

f. TheDirectorshavedevisedpropersystemstoensurecompliancewiththeprovisionsofallapplicablelawsandthatsuchsystemsareadequateandoperatingeffectively.

PARTICULARS OF LOANS GIVEN AND INVESTMENTS MADE

BeingaNBFC(Non-BankingFinancialCompany),theCompanyisexemptedunderSection186(11)oftheCompaniesAct,2013.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO

A) Conservation of Energy & Technology Absorption

Particulars underCompanies (Accounts)Rules, 2014on conservationof energy,Technology absorption are not applicable to yourCompany. Accordinglynodisclosurehas beenmade in thisregard.

B) Foreign Exchange Earnings and Outgo

Thecompanyhasneitherearnednorspentanyforeignexchangeduringtheyearunderreview.

RELATED PARTY TRANSACTIONS

Allcontracts/arrangements/transactionsenteredbytheCompanyduringthefinancialyearunderreviewwithrelatedparty(s)wereintheordinarycourseofbusinessandonanarm’slengthbasis.Duringtheyear,theCompanyhadnotenteredintoanycontract/arrangement/transactionwithrelatedpartieswhichcouldbeconsideredmaterial inaccordancewiththepolicyoftheCompanyonmaterialityofrelatedpartytransactions.ThePolicyonmaterialityofrelatedpartytransactionsanddealingwithrelatedpartytransactionsasapprovedbytheBoardmaybeaccessedontheCompany’swebsiteatthelink:http://fslindia.com/pdf/RPT.pdf

ParticularsofcontractsorarrangementwithrelatedpartiesduringtheyearunderreviewareprovidedinAOC-2asAnnexureIII.

CORPORATE SOCIAL RESPONSIBILITY (CSR)

IntermsofSection135andScheduleVIIoftheCompaniesAct,2013,theCompanyhasaCorporateSocialResponsibility(CSR)CommitteewhichcomprisestotalthreemembersofwhichtwoMembersincludingChairmanoftheCommitteeareIndependentDirectors.DetailsofCommittee&itsmeeting



FSLaregiveninReportonCorporateGovernance.

Duringtheyearunderreview,theCompanywasrequiredtospendRs.9.73lakhs(2%ofAveragenetprofitsoflast3financialyears)onCSRActivities.

TheCompanyshallutilizetheavailablefundsonlongtermprojectssuchasEducation,OldAgeHomes,Orphanageetc.(asspecifiedunderScheduleVIIofCompaniesAct,2013forCSRactivities).TheCompanyisundertheprocessoffindingthesuitableoptionsandfinalizationoftheimplementationplanforthesame.

InviewoftheabovetheCompanyispreservingthefundssothatasandwhentheadequateandappropriateoptionisavailabletotheCompany,itwillutilizethefundsforCSRactivities.Hence,theCompanyhasdecidednottospendtheamountonCSRduringtheyearunderreview.However,theCompanyhasbeencompliantwiththeprovisionsofSection135oftheCompaniesAct,2013inthepast.

TheCSRPolicymaybeaccessedontheCompany’swebsiteatthelink:http://www.fslindia.com/pdf/csr%201.pdf

TheAnnualreportonCSRactivitiesisannexedherewithasAnnexureIV.

AUDITORS AND AUDITORS’ REPORT

i) Statutory Auditors:

Pursuanttosection139oftheCompaniesAct,2013,theBoardofDirectorsoftheCompanyhasappointedM/sWalechaInder&Associates,CharteredAccountants(FRN:014205N)on17.05.2017asaStatutoryAuditorforatermofFiveYearstoholdtheofficefromtheconclusionofthe23rdAnnualGeneralMeetingheldintheFinancialyear2016-17tilltheconclusionofthe28thAnnualGeneralMeetingtobeheldfortheFinancialyear2021-22subjecttoratificationateveryAnnualGeneralMeeting.

Furthertheyhaveconfirmedtheireligibilitytotheeffectthattheirre-appointment,ifmade,wouldbewithintheprescribedlimitsundertheActandthattheyarenotdisqualifiedforthere-appointment.

ThenotesonfinancialstatementreferredtointheAuditor’sreportareself-explanatoryanddonotcallforanyfurthercomments.TheAuditor’sReportdoesnotcontainanyqualification,reservationandadverseremark.

DuringtheyearunderReviewtheAuditorhadnotreportedanymatterunderSection143(12)oftheCompaniesAct,2013;thereforenodetailisrequiredtobedisclosedunderSection134(3)oftheCompaniesAct,2013.

ii) Secretarial Audit:

TheBoardhas re-appointedM/s JainAarti&Associates,PracticingCompanySecretary, to conductSecretarialAuditforthefinancialyear2017-18.TheSecretarialAuditReportforthefinancialyearendedMarch31,2018isannexedherewithmarkedasAnnexureVtothisReport.TheSecretarialAuditReportdoesnotcontainanyqualification,reservationoradverseremark.

EXTRACT OF ANNUAL RETURN

ExtractofAnnualReturnoftheCompanyisannexedherewithinMGT-9asAnnexureVItothisReport.

ItmayalsobeaccessedonthewebsiteoftheCompanyathttp://www.fslindia.com/pdf/MGT_9%20new-1-5.pdf

INTERNAL FINANCIAL CONTROLS

TheCompanyhasinplaceadequateinternalfinancialcontrolswithreferencetofinancialstatements.Duringtheyear,suchcontrolsweretestedandnoreportablematerialweaknessinthedesignoroperationswereobserved.

VIGIL MECHANISM &WHISTLE BLOWER POLICY

TheCompanybelievesinconductingitsaffairsinfair&transparentmannerbyadoptinghigheststandardsofprofessionalism,honesty,integrity&ethicalbehavior.TheCompanyiscommittedtodevelopaculture



FSLwhereitissafeforallemployeestoraiseconcernaboutanywrongfulconduct.ForthistheCompanyhasestablishedaVigilMechanismfordirectorsandemployeestoreportgenuineconcerns.

AspertheCompany’spolicy,anypersonnelcanapproachtheAuditCommittee.Howevernosuchinstancehasbeenreportedduringtheyearunderreview.

TheVigilMechanismPolicymaybeaccessedonthewebsiteoftheCompanyathttp://www.fslindia.com/pdf/FSL_VIGIL%20MECHANISM%20AND%20whistle-blower-policy.pdf

SIGNIFICANT AND MATERIAL ORDERS

TherearenoorderspassedbytheanyregulatoryauthoritiesorcourtsortribunalwhichwouldimpactthegoingconcernstatusoftheCompanyanditsoperationinfuture.

RISK MANAGEMENT

TheBoardofDirectorshasconstitutedaRiskManagementCommitteefor

a. evaluatingthevariousrisksimpactingtheCompany;and

b. overseeingthatalltherisksthattheorganizationfacessuchasstrategic,financial,credit,market,liquidity,security,property,IT,legal,regulatory,reputationandotherriskshavebeenidentifiedandassessedandthereisanadequateriskmanagementinfrastructureinplacecapableofaddressingthoserisks.

The riskmanagement policy of theCompanymay be accessed onwebsite of theCompany under thehttp://www.fslindia.com/pdf/RISK%20MNGT.pdflink.

AUDIT COMMITTEE

TheAuditCommitteecomprisesoffourmembersofwhichallmembersincludingChairmanofthecommitteeareIndependentDirectors.Duringtheyearsixmeetingswereconvenedandheld.DetailsofthesameareprovidedinReportonCorporateGovernance.

CORPORATE GOVERNANCE

TheCompanyhastakenadequatestepstoensurecomplianceswiththeprovisionofcorporategovernanceasprescribedunderSEBI(ListingObligationandDisclosuresRequirements)Regulations,2015.

AseparatesectiononCorporateGovernancePracticesfollowedbytheCompanytogetherwithCertificatefromCompany’sAuditor&CFOconfirming thecomplianceofCorporateGovernance formsan integralpartofthisAnnualReportasPerRegulation34&ScheduleVofSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015.

SEXUAL HARASSMENT OF WOMEN AT WORKPLACE

TheCompanyisanequalopportunityemployerandconsciouslystrivestobuildaworkculturethatpromotesdignityofallemployees.Asrequiredunder theprovisionsofsexualharassmentofWomenatWorkplace(Prevention,ProhibitionandRedressal)Act,2013andRulesframedthereunder,theCompanyhasimplementedapolicyonprevention,prohibitionandredressalofsexualharassmentatworkplace.Allwomen,permanent,temporaryorcontractualincludingthoseofserviceproviderarecoveredunderthispolicy.

InternalComplaintsCommittee (ICC) has been set up to redress complaints received regarding sexualharassment.TherewereNoComplaintsreceivedfromanyemployeeduringthefinancialyear2017-18andhencenocomplaintisoutstandingason31.03.2018forredressal.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

ManagementDiscussionandAnalysiscomprisinganoverviewofthefinancialresults,operations/performancesandfutureaspectsformpartofthisannualreport.

PARTICULARS OF EMPLOYEE

TheinformationrequiredunderSection197oftheActreadwithrule5(1)oftheCompanies(AppointmentandRemunerationofManagerialPersonnel)Rules,2014aregivenbelow:



FSLa. TheratiooftheremunerationofeachdirectortothemedianremunerationoftheemployeesoftheCompanyforthefinancialyear:

Non-Executive Directors Ratio to median remuneration

NoremunerationhasbeenpaidtoNon-executivedirectors

Executive Directors Ratio to median remuneration

GauriShankerPandey 1.82

RichaArora 1.05

b. Thepercentageincreaseinremunerationofeachdirector,chiefexecutiveofficer,chieffinancialofficer,companysecretaryintheFinancialYear:

*Therewasnoincreaseinsalary.However,revisionofsalarywasdone.

**ResignedasChiefFinancialOfficerw.e.f21.10.2017

***AppointedasChiefFinancialOfficerw.e.f21.10.2017

c. Thepercentageincreaseinthemedianremunerationofemployeesinthefinancialyear:5.25%

d. ThenumberofpermanentemployeesontherollsofCompany:12(ason31stMarch,2018).

e.Averagepercentileincreasealreadymadeinthesalariesofemployeesotherthanthemanagerialpersonnelinthelastfinancialyearanditscomparisonwiththepercentileincreaseinthemanagerialremunerationandjustificationthereofandpointoutifthereareanyexceptionalcircumstancesforincreaseinthemanagerialremuneration:

Thepercentageincreaseinthemedianremunerationofemployeesinthefinancialyearis5.25%whereasincreaseinthemanagerialremunerationfortheyearwas5.74%

f. TopTenEmployeesintermsofRemunerationdrawnason31.03.2018:

Company’sBusinessModeldoesnotrequirelargeno.ofpeople.TotalNo.ofemployeesason31.03.2018is12whichincludesSeniorLevel,MiddleLevelandlowerlevel.Detailsofallseniorlevelemployeesdrawingsalaryaregivenbelow:

Directors,ChiefExecutiveOfficer,Chief

FinancialOfficerandCompanySecretary

GauriShankerPandey(WholeTimeDirector)

RichaArora(CompanySecretary)

**SwarnaGowriS.(ChiefFinancialOfficer)

***MayankAgarwal(ChiefFinancialOfficer)

%increaseinremunerationin

thefinancialyear

NIL*

36.36%

33.33%

NA

Particulars

Designation

RemunerationReceived(Rs.

InLakhs)

NatureofEmployment

Qualification

Mr. G.S Pandey

WholeTimeDirector

7.22

Permanent

B.com

Mr. Mayank Agarwal

ChiefFinancialOfficer

(from21.10.2017)

1.82*

Permanent

CA&B.com

Ms. Richa Arora

WholeTimeDirector

&CompanySecretary

4.17

Permanent

CS&B.com(H)



FSLExperience

DateofCommencementof

Employment

Age

PreviousEmployment&

Designation

No.ofsharesheldinthe

Company

30yearsofExperience

inHumanResourceand

administration

16.03.2013(appointedas

aWholeTimeDirector)

60years

DolsunContainersPrivate

Limited,Manager

0

1yearofexperiencein

theFieldofAccounts,

taxation&Audit.

21.10.2017

25years

MJMJ&Associates

LLP,AuditManager

0

2yearsofExperience

inthefieldofCompany

law,SEBIRegulation

&othercorporatelaw

matter.

26.02.2016

25years

Tiwari&Mishra,

CharteredAccountant

asanAccounts

Executive

0

Note:#AppointedasChiefFinancialOfficeron21.10.2017

1. NoneoftheabovementionedemployeeisarelativeofanydirectorormangeroftheCompany.

2. TheabovementionedemployeesconstitutetheKMP’softheCompany,besidesthis,theother

employeesreceivesnominalsalarydependingupontheirworkprofile.

g. NoemployeewhowasemployedthroughouttheFinancialYear17-18wasinreceiptofremuneration,whichinaggregatewasofamountnotlessthanRupeesOneCroreandTwolakh.

h. NoemployeewhowasemployedforapartoftheFinancialYear17-18wasinreceiptofremunerationforanypartthereof,whichinaggregatewasofamountnotlessthanRupeesEightyLakhsandFiftyThousand.

i. NoemployeewhowasemployedthroughouttheFinancialYear17-18orpartthereofwasinreceiptofremunerationwhichinaggregateorasthecasemaybe,wasataratewhichinaggregatewasinexcessofthatdrawnbythewholetimedirector(s)andwhoheldbyhimselforalongwithhisspouseanddependentchildren,notlessthan2percentoftheEquitysharesoftheCompany.

j. AffirmationthattheremunerationisaspertheremunerationpolicyoftheCompany:theCompanyherebyaffirmsthatremunerationispaidaspertheremunerationpolicyoftheCompany.

ACKNOWLEDGEMENTYourDirectorsexpresstheirsincerethanksandgratitudetotheCompany’sesteemedShareholders,Clients,Associates, Financial Institutions,Bankers, theSecurities andExchangeBoard of India,BombayStockExchangeLimited,ReserveBankofIndiaandotherGovernmentDepartmentsfortheirvaluablecontributionandwholeheartedsupport.

WealsoacknowledgethesincereanddedicatedeffortsputinbytheemployeesoftheCompanyatalllevels.

ForOnbehalfoftheBoardofDirectors

FRONTLINE SECURITIES LIMITED

Gauri Shanker Pandey Rakesh K. Jain

Place:Noida Whole Time Director Chairman

Date: 28.05.2018 DIN: 00050614 DIN: 00050524



FSLAnnexure-I

Policy for Selection of Director and determining Director’s Independence

1. Introduction

1.1.FrontlineSecuritiesLimited(FSL)believesthatanenlightenedBoardconsciouslycreatesacultureofleadershiptoprovidealong-termvisionandpolicyapproachtoimprovethequalityofgovernance.Towardsthis,FSLensuresconstitutionofaBoardofDirectorswithanappropriatecomposition,size,diversifiedexpertiseandexperienceandcommitmenttodischargetheirresponsibilitiesanddutieseffectively.

1.2.FSLrecognizestheimportanceofIndependentDirectorsinachievingtheeffectivenessoftheBoard.FSLaimstohaveanoptimumcombinationofExecutive,Non-ExecutiveandIndependentDirectors.

2. Scope and Exclusion:

2.1ThisPolicy sets out the guidingprinciples for the “Nomination andRemunerationCommittee” foridentifyingpersonswhoarequalifiedtobecomeDirectorsandtodeterminetheindependenceofDirectors,incaseoftheirappointmentasIndependentDirectorsoftheCompany.

3. Terms and References:

InthisPolicy,thefollowingtermsshallhavethefollowingmeanings:

3.1 “Director”meansadirectorappointedtotheBoardofacompany.

3.2 “Nomination andRemunerationCommittee”means the committee constituted by FSL’sBoard inaccordancewiththeprovisionsofSection178oftheCompaniesAct,2013andRegulation19ofSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015.

3.3 “IndependentDirector”meansadirectorreferredtoinsub-section(6)ofSection149oftheCompaniesAct,2013andRegulation16(1)(b)ofSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015.

4. Policy:

4.1 Qualifications and criteria

4.1.1 The“NominationandRemuneration(N&R)Committee”,andtheBoard,shallreviewonanannualbasis,appropriateskills,knowledgeandexperiencerequiredoftheBoardasawholeanditsindividualmembers.TheobjectiveistohaveaBoardwithdiversebackgroundandexperiencethatarerelevantfortheCompany’sglobaloperations.

4.1.2 InevaluatingthesuitabilityofindividualBoardmembers,theN&RCommitteemaytakeintoaccountfactors,suchas:

• General understanding of theCompany’s business dynamics, global business and socialperspective;

• Educationalandprofessionalbackgroundstandingintheprofession;

• Personalandprofessionalethics,integrityandvalues/willingnesstodevotesufficienttimeandenergyincarryingouttheirdutiesandresponsibilitieseffectively.

4.1.3 Theproposedappointeeshallalsofulfillthefollowingrequirements:

• ShallpossessaDirectorIdentificationNumber;

• ShallnotbedisqualifiedundertheCompaniesAct,2013;

• ShallgivehiswrittenconsenttoactasaDirector;

• Shall endeavor to attend allBoardMeetings andwherever he is appointed as aCommitteeMember,theCommitteeMeetings;



FSL • Shall abide by theCode ofConduct established by theCompany forDirectors andSenior

ManagementPersonnel;

• Shalldisclosehisconcernorinterestinanycompanyorcompaniesorbodiescorporate,firms,orotherassociationofindividualsincludinghisshareholdingatthefirstmeetingoftheBoardineveryfinancialyearandthereafterwheneverthereisachangeinthedisclosuresalreadymade;Suchotherrequirementsasmaybeprescribed,fromtimetotime,undertheCompaniesAct,2013,SEBI(ListingandObligationRequirements)Regulations,2015andotherrelevantlaws.

4.2 Criteria of Independence

4.2.1 TheN&RCommitteeshallassess the independenceofDirectorsat the timeofappointment/ re-appointment and theBoard shall assess the same annually.TheBoard shall re-assessdeterminations of independencewhen anynew interests or relationships are disclosed by aDirector.

4.2.2 ThecriteriaofindependenceshallbeaslaiddowninCompaniesAct,2013andRegulation16(1)(b)ofSEBI(ListingobligationsandDisclosureRequirements)Regulations,2015.



FSLAnnexure-II

Remuneration Policy for Directors, Key Managerial Personnel and other employees

1. Introduction FrontlineSecuritiesLimited(FSL)recognizestheimportanceofaligningthebusinessobjectiveswithspecificandmeasureableindividualobjectivesandtargets.TheCompanyhasthereforeformulatedtheremunerationpolicyforitsDirectors,KeyManagerialPersonnelandotheremployeeskeepinginviewthefollowingobjectives:

Ensuringthatthelevelandcompositionofremunerationisreasonableandsufficienttoattract,retainandmotivate,torunthecompanysuccessfully.

Ensuringthatrelationshipofremunerationtoperformanceisclearandmeetstheperformancebenchmarks. Ensuringthatremunerationinvolvesabalancebetweenfixedandincentivepayreflectingshortandlongtermperformanceobjectivesappropriatetotheworkingofthecompanyanditsgoals.

2. Scope and Exclusion: This Policy sets out the guiding principles for theNomination andRemunerationCommittee forrecommending to theBoard the remunerationof theDirectors,KeyManagerialPersonnel andotheremployeesoftheCompany.

3. Terms and References: InthisPolicy,thefollowingtermsshallhavethefollowingmeanings: 3.1 “Director”meansadirectorappointedtotheBoardoftheCompany. 3.2 “Key Managerial Personnel”means (i) theChiefExecutiveOfficerortheManagingDirectorortheManager; (ii) thecompanysecretary; (iii) thewhole-timedirector; (iv) theChiefFinancialOfficer;and (v) suchotherofficerasmaybeprescribedundertheCompaniesAct,2013 3.3 “Nomination and Remuneration Committee”meansthecommitteeconstitutedbyFSL’sBoard

inaccordancewiththeprovisionsofSection178oftheCompaniesAct,2013andRegulation19ofSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015.

4. Policy:4.1 Remuneration to Executive Directors and Key Managerial Personnel 4.1.1 TheBoard,ontherecommendationoftheNominationandRemuneration(N&R)Committee,

shallreviewandapprovetheremunerationpayabletotheExecutiveDirectorsoftheCompanywithintheoveralllimitsapprovedbytheshareholders.

4.1.2 TheBoard,ontherecommendationoftheN&RCommittee,shallalsoreviewandapprovetheremunerationpayabletotheKeyManagerialPersonneloftheCompany.

4.2 Remuneration to Non-Executive Directors 4.2.1 TheBoard, on the recommendationof theN&RCommittee, shall review and approve the

remunerationpayabletotheNon-ExecutiveDirectorsoftheCompanywithintheoveralllimitsapprovedbytheshareholders.

4.3 Remuneration to other employees 4.3.1 Employees shall be assigned grades according to their qualifications andwork experience,

competencies aswell as their roles and responsibilities in the organization. Individualremunerationshallbedeterminedwithintheappropriategradeandshallbebasedonvariousfactorssuchasjobprofile,skillsets,seniority,experienceandprevailingremunerationlevelsforequivalentjobs.



FSL Annexure-III

Form No. AOC-2

(Pursuant to clause (h) of sub-section (3) of section 134 of the Act and Rule 8 (2) of the Companies (Accounts) Rules, 2014)

Form for disclosure of particulars of contracts/arrangements entered into by the company with related parties referred to in sub-section (1) of section 188 of the Companies Act, 2013 including certain arms length transactions under third proviso there to1. Detailsofcontractsorarrangementsortransactionsnotatarm’slengthbasis:

FrontlineSecuritiesLimited(FSL)hasnotenteredintoanycontractorarrangementortransactionwithitsrelatedpartieswhichisnotatarm’slengthduringfinancialyear2017-18.

2. Detailsofmaterialcontractsorarrangementortransactionsatarm’slengthbasis

(a) Name(s)oftherelatedpartyandnatureofrelationship:

I. AridhiJain,relativeofDirector

II. HopeConsultantsLimited,commonDirectors

III. FrontlineCapitalServicesLimited,commonDirector

IV. FSLSoftwareTechnologiesLimited,commonDirector

(b) Natureofcontracts/arrangements/transactions:

I. RentAgreement,

II. RentAgreement,

III. ShareBrokingandDepositoryServices:and

IV. RentAgreement,respectively

(c) Durationofthecontracts/arrangements/transactions

I. Contract datedApril 04, 2012 as renewed onApril 01, 2015whichwas terminated on14thAugust,2017.

II. ContractdatedApril01,2013asrenewedonApril04,2016whichisongoing.

III. Agreemententeredin1995,whichisongoing.

IV. ContractenteredonJuly01st,2017foraperiodofthreeyearswhichisstillongoing.

(d) Salienttermsofthecontractsorarrangementsortransactionsincludingthevalue,ifany:

I. TheCompanyhasgivenresidentialpremisesonleaseandrentbasisontermsand conditionsspeltoutintheRentAgreement.TheContracthasbeenterminatedw.e.f 14thAugust,2017.

II. TheCompanyhastakenofficepremisesonleaseandrentbasisonthetermsand conditionsspeltoutintheRentAgreement.

III. TheCompanyhasenteredintoShareBrokingandDepositoryServicesintheregularcourseofbusiness.

IV. TheCompanyhastakenofficepremisesonrentbasisonthetermsandconditionsspeltoutintheRentAgreement.

(e) Date(s) of approval by the Board, if any: Not applicable, since the contract was enteredintotheordinarycourseofbusinessandonarm’slengthbasis.

(f) Amountpaidasadvances,ifany:

I.NIL II.NIL III.NIL IV.NIL



FSLAnnexure-IV

ANNUAL REPORT ON CSR ACTIVITIESPursuant to Section 135 of the Act & Rules made there under

1. A brief outline of the company’s CSR Policy, including overview of projects or programs proposed to be undertaken and a reference to the web link to the CSR policy and projects or programs:

FSL’sCSRpolicyisaimedat“capacitybuilding”oftheunderservedandmarginalized.IthasaCSRvisiontoupholdhumanvalueswithsustainablecommunitydevelopment.Undercapacitybuilding,majoremphasiswillbegiventoprogramsthatequipwomen&youthtobedriversofchangeandchildrenasthefutureofamaturingeconomy.

TheprojectsundertakenwillbewithinthebroadframeworkofScheduleVIIoftheCompaniesAct,2013.TheCompanyproposestopromoteorphanage,education,financialliteracyinitiativesandsettingupoldagehomes.

DetailsofCSRpolicyareavailableontheweblinkhttp://fslindia.com/pdf/csr%201.pdf

2. The Composition of the CSR Committee:

S.NO NAME CATEGORY DESIGNATION

1 Mr.AtulKJain IndependentDirector Chairman

2 Mr.GauriShankerPandey Whole–TimeDirector Member

3 Mr.ArunK.Jain IndependentDirector Member

3. Average net profit of the company for last three financial years for the purpose of computation of CSR: Rs. 48,668,603.33

4. Prescribed CSR Expenditure (two percent of the amount shown as in item 3 above): Rs.973,372.075. Details of CSR spent during the financial year: a. Total amount to be spent for the financial year: NIL b. Amount unspent, if any: Rs.973,372.07

c. Manner in which the amount spent during the financial year is detailed below:

(1)S.No

(2)CSRprojectoractivityidentified

(3)Sectorinwhichtheprojectiscovered

(4)Projectsorprograms1)Localareaor other2)Specifythestateanddistrictwhereprojectsorprogramswasundertaken

(5)Amountoutlay(budget)projectorprogramswise(RupeesinLakhs)

(6)AmountspentontheprojectsorprogramsSub-heads:1) Directexpenditureonprojectsorprograms2) Overheads:(RupeesinLakh

(7)Cumulativeexpenditureuptothereportingperiod(Rupeesinlakhs)

(8)AmountspentDirectorthroughimple-mentingagency.

NIL



FSL6. In case the Company has failed to spend the two percent of the average net profits of the last three

financial years or any part thereof, the Company shall provide the reasons for not spending the amount in its Board report.

TheCompanyshallutilizetheavailablefundsonlongtermprojectssuchasEducation,OldAgeHomes,Orphanageetc.(asspecifiedunderScheduleVIIofCompaniesAct,2013forCSRactivities).TheCompanyisundertheprocessoffindingthesuitableoptionsandfinalizationoftheimplementationplanforthesame.

InviewoftheabovetheCompanyispreservingthefundssothatasandwhentheadequateandappropriateoptionisavailabletotheCompany,itwillutilizethefundsforCSRactivities.Hence,theCompanyhasdecidednottospendtheamountonCSRduringtheyearunderreview.However,theCompanyhasbeencompliantwiththeprovisionsofSection135oftheCompaniesAct,2013inthepast.

7. A responsibility statement of the CSR Committee that the implementing and monitoring of CSR Policy, is in compliance with CSR objectives and Policy of the Company.

WedeclarethatimplementingandmonitoringoftheCSRPolicyareincompliancewithCSRobjectivesandPolicyoftheCompany.

OnbehalfoftheBoardofDirectors

ForFRONTLINE SECURITIES LIMITED

Atul K. Jain Rakesh K. Jain

(Chairman CSR Committee) (Chairman)

DIN: 00133750 DIN: 00050524



FSL

Annexure-V

Jain Aarti & AssociatesCompany Secretaries

D-5,IIndFloor,R.K.Tower,Sector-4,Vaishali,Ghaziabad.Ph.No.9811894375,[email protected].

Form No. MR-3

SECRETARIAL AUDIT REPORTForTheFinancialYearEndedon31stMarch2018

[Pursuanttosection204(1)oftheCompaniesAct,2013andruleNo.9oftheCompanies(AppointmentandRemunerationofManagerialPersonnel)Rules,2014]

To,TheMembers,Frontline Securities Limited M-6,IIndFloor,M-BlockMarketGreaterKailash-II,NewDelhi-110048.

Ihaveconductedthesecretarialauditofthecomplianceofapplicablestatutoryprovisionsandtheadherencetogoodcorporatepracticesby‘Frontline Securities Limited’(hereinaftercalledthecompany).SecretarialAuditwasconductedinamannerthatprovidedmeareasonablebasisforevaluatingthecorporateconducts/statutorycompliancesandexpressingouropinionthereon.

I, Report That:

BasedonmyverificationoftheCompany’sbooks,papers,minutebooks,formsandreturnsfiledandotherrecordsmaintainedbytheCompanyandalsotheinformationprovidedbytheCompany,itscompanysecretary,itsofficersagentsandauthorizedrepresentativesduringtheconductofsecretarialaudit,Iherebyreportthatinmyopinionduringtheauditperiodcoveringthefinancialyearendedon31stMarch2018(‘AuditPeriod’)theCompanyhascompliedwith thestatutoryprovisions listedhereunderandalso that theCompanyhasproperBoard-processesandcompliance-mechanisminplacetotheextent,inthemannerandsubjecttothereportingmadehereinafter:

Ihaveexaminedthebooks,papers,minutebooks,formsandreturnsfiledandotherrecordsmaintainedbytheCompanyforthefinancialyearendedon31stMarch2018accordingtotheprovisionsof:

I. TheCompaniesAct,2013(theAct)andtheRulesmadethereunder;

II. TheSecuritiesContract(Regulation)Act,1956(SCRA)andtherulesmadethereunder;

III. TheDepositoriesAct,1996andtheRegulationsandByelawsframedthereunder;

IV. TheFollowingRegulationsandGuidelinesprescribedundertheSecuritiesandExchangeBoard ofIndiaAct,1992(SEBIAct)totheextentapplicabletotheCompany:

a) TheSecuritiesandExchangeBoardofIndia(SubstantialAcquisitionofSharesandTakeovers)Regulations,2011;

b) TheSecuritiesandExchangeBoardofIndia(ProhibitionofInsiderTrading)Regulations,1992;



FSL c) TheSecuritiesandExchangeBoardofIndia(IssueofCapitalandDisclosureRequirements)

Regulations,2009;

d) TheSecuritiesandExchangeBoardofIndia(RegistrartoanIssue&ShareTransferAgents)Regulations,1993regardingtheCompaniesActanddealingwithClient.

e) TheSecuritiesandExchangeBoardofIndia(DelistingofequityShares)Regulations,2009.

f) TheSecuritiesandExchangeBoardofIndia(ESOSandESPS)Guidelines,1999;

g) TheSecuritiesandExchangeBoardofIndiaSEBI(BuybackofSecurities)Regulations,1998.

h) TheMemorandumandArticlesofAssociationoftheCompany.

Ihavealsoexaminedcompliancewiththeapplicableclausesofthefollowing:

a) SecretarialStandardsissuedbyTheInstituteofCompanySecretariesofIndia.

b) TheListingagreemententeredbytheCompanywithBombayStockExchange(BSE).

During the period of audit review, the companyhas compliedwith all the provisions of theAct,Rules,Regulations,Guidelines,Standards,ListingAgreementsetc.asmentionedabove.

I, Report That:

Duringtheperiodunderreviewandaspertheexplanationsandrepresentationsmadebythemanagementandsubjecttoclarificationsgiventous,theCompanyhassubstantiallycompliedwiththeprovisionsoftheAct,Rules,Regulations,Guidelines,etc.,thatareapplicabletotheCompany.;

IfurtherreportthatthecompliancebytheCompanyofapplicablefinanciallaws,likedirectandindirecttaxlaws,hasnotbeenreviewedinthisAuditsincethesamehavebeensubjecttoreviewbystatutoryfinancialauditandotherdesignatedprofessionals.

IfurtherreportthattheCompanyhas,inouropinion,compliedwiththeprovisionsoftheCompaniesAct,2013andtheRulesmadeunderthatActandtheMemorandumandArticlesofAssociationoftheCompany,withregardto:

a) Maintenanceofvariousstatutoryregistersanddocumentsandmakingnecessaryentriestherein;

b) Forms,returns,documentsandresolutionsrequiredtobefiledwiththeRegistrarofCompaniesandtheCentralGovernment;

c) ServiceofdocumentsbytheCompanyonitsMembers,AuditorsandtheRegistrarofCompanies;

d) NoticeofBoardMeetingsandCommitteeMeetingsofDirectors;

e) ThemeetingsofDirectorsandCommitteesofDirectorsincludingpassingofresolutionsby circulation;

f) TheAnnualGeneralMeetingduringtheperiodwasheldon9th August 2017;

g) MinutesofproceedingsofGeneralMeetingsandoftheBoardanditsCommitteemeetings;

h) ApprovalsoftheMembers,theBoardofDirectors,theCommitteesofDirectorsandthegovernmentauthorities,whereverrequired;

i) ConstitutionoftheBoardofDirectors/Committee(s)ofDirectors,appointment,retirementandreappointmentofDirectorsincludingtheManagingDirectorandWhole-timeDirectors;

j) PaymentofremunerationtoDirectorsincludingWhole-timeDirectors,

k) AppointmentandremunerationofAuditors;

l) TransfersandtransmissionsoftheCompany’sshares;



FSLm) Borrowingsandregistration,modificationandsatisfactionofchargeswhereverapplicable;

n) InvestmentoftheCompany’sfundsincludinginvestmentsandloanstoothers;

o) FormofBalanceSheetasprescribedunderPartI,formofstatementofprofitandlossasprescribedunderPartIIandGeneralInstructionsforpreparationofthesameasprescribedinSchedulestotheAct;

p) Directors’report;

q) Contracts,commonseal,registeredofficeandpublicationofnameoftheCompany;and

r) Generally,allotherapplicableprovisionsoftheActandtheRulesmadeundertheAct.

I, further report that:

• TheBoardofDirectorsoftheCompanyisdulyconstitutedwithproperbalanceofExecutiveDirectors,Non-ExecutiveDirectorsandIndependentDirectors.ThechangesinthecompositionoftheBoardofDirectorsthattookplaceduringtheperiodunderreviewwerecarriedoutincompliancewiththeprovisionsoftheAct.

• Inaccordancewithlaw,adequatenoticeisgiventoalldirectorstoscheduletheBoardMeetings,agendaanddetailednotesonagendaweresentatleastsevendaysinadvance,andasystemexistsforseekingandobtainingfurtherinformationandclarificationsontheagendaitemsbeforethemeetingandformeaningfulparticipationatthemeeting.

• Allthedecisionsarecarriedunanimously.ThemembersoftheBoardhavenotexpresseddissentingviewsonanyoftheagendaitems.

• TheCompanyhasobtainedallnecessaryapprovalsunderthevariousprovisionsoftheAct;andtherewasnoprosecutioninitiatedandnofinesorpenaltieswereimposedduringtheyearunderreviewundertheCompaniesAct2013,DepositoriesActandRules,RegulationsandGuidelinesframedundertheseActsagainst/ontheCompany,itsDirectorsandOfficers.

• TheDirectorshavecompliedwiththedisclosurerequirementsinrespectoftheireligibilityofappointment,theirbeingindependentandcompliancewiththeCodeofConductforIndependentDirectors;

• IfurtherreportthatCompanyhascompliedwiththeprovisionsoftheDepositoriesAct,1996andtheByelawsframedthereunderbytheDepositorieswithregardtodematerialization/rematerialisationofsecurities and reconciliation of records of dematerialized securitieswith all securities issuedby theCompany.

BasedonthecompliancemechanismestablishedbytheCompany,Iamoftheopinionthatthemanagementhas:-

• Adequate systems andprocesses in the company commensuratewith the size andoperationsof thecompanytomonitorandensurecompliancewithapplicablelaws,rules,regulationsandguidelines.

• IfurtherreportthatCompanyhasproperlycompliedwiththeprovisionsofBuy-BackofSecuritiesunderCompaniesAct,2013andSEBI(BuyBackofSecurities)Regulations,1998withrespectto12,58,843sharesboughtbackduringtheyear.

I, further report that:thatduringtheauditperiod,therewerenoinstancesof:-

a) Foreigntechnicalcollaborationduringthefinancialyear;b) Merger/Amalgamation/Reconstructionetc.;c) Public/Right/Preferentialissueofshares/debentures/sweatequitysharesetc.;d) Majordecisiontakenbythemembersinpursuancetothesection180oftheCompaniesAct,2013.

Ifurtherreportthat:

a) Maintenance of secretarial records is the responsibility of themanagement of theCompany.Our



FSLresponsibilityistoexpressanopiniononthesesecretarialrecordsbasedonouraudit.

b) Ihavefollowedtheauditpracticesandprocessesaswereappropriate toobtainreasonableassuranceaboutthecorrectnessofthecontentsofthesecretarialrecords.Theverificationwasdoneontestbasistoensurethatcorrectfactsarereflectedinsecretarialrecords.Ibelievethattheprocessesandpractices,wefollowedprovideareasonablebasisforouropinion.

c) IhavenotverifiedthecorrectnessandappropriatenessofthefinancialstatementsoftheCompany.

d) Thecomplianceoftheprovisionsofthecorporateandotherapplicablelaws,rules,regulation,standardsistheresponsibilityofthemanagement.Ourexaminationwaslimitedtotheverificationofproceduresontestbasis.

e) TheSecretarialAuditreportisneitheranassuranceastothefutureviabilityoftheCompanynoroftheefficacyoreffectivenesswithwhichthemanagementhasconductedtheaffairsoftheCompany.

Place: Vaishali For Jain Aarti & AssociatesDate: 21/05/2018 (Company Secretaries)

CS Chhaya Walia Membership No. A42947

COP No.19868



FSL

I. REGISTRATION & OTHER DETAILS:

1 CIN L65100DL1994PLC058837

2 RegistrationDate 5/5/1994

3 NameoftheCompany FRONTLINESECURITIESLIMITED

4 Category/Sub-categoryoftheCompany COMPANYLIMITEDBYSHARES

NON-GOVERNMENTCOMPANY

5 (i)AddressoftheRegisteredoffice&contactdetails M-6,IINDFLOOR,MBLOCKMARKET,

GREATERKAILASH-II,NEWDEL

HI-110048,PH:011-29216309,29212610,

(ii)Addressforcorrespondence B-22,SECTOR-4,NOIDA-201301,

UTTARPRADESH,PHN:0120-2534066

6 Whetherlistedcompany YES(ListedonBSE)

7 Name,Address&contactdetailsoftheRegistrar& LINKINTIMEINDIAPVT.LTD,

TransferAgent,ifany. 44,COMMUNITYCENTRE2ND,FLOOR,

NARAINAINDUSTRIALAREA,

PHASE-1,NEARPVRNARAIANA,

NEWDELHI-110028,PH:+91-1141410592,

FAX:+91-41410591

II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY

(Allthebusinessactivitiescontributing10%ormoreofthetotalturnoverofthecompanyshallbestated)

S.No. NameandDescriptionofmainproducts/services NICCodeofthe %tototalturnover

Product/service ofthecompany

1 TOBUY,SELL,ACQUIRE,ANDHOLDSHARES, 6599 72.70%

STOCKS,DEBENTURESANDBONDS

III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES

SN NameandaddressoftheCompany CIN/GLN Holding/Subsidiary %ofsharesheld Applicable

/Associate Section

1 NIL NIL NIL NIL NIL

Annexure VI

“Duringtheyear,thecompanyhasbroughtback12,58,843EquityShares,subsequentlythepaidupsharecapitaloftheCompanyason31.03.2018standsreducedfromRs.7,18,66,890/-toRs.5,92,78,460/-dividedinto59,27,846EquitySharesofRs.10/-each.”

FORM NO. MGT 9EXTRACT OF ANNUAL RETURN

As on financial year ended on 31.03.2018

Pursuant to Section 92 (3) of the Companies Act, 2013 and rule 12(1) of the Company

(Management & Administration) Rules, 2014.



FSL IV. SHARE HOLDING PATTERN (Equitysharecapitalbreakupaspercentageoftotalequity) (i) Category-wise Share Holding CategoryofShareholders “No.ofSharesheldatthebeginningof “No.ofSharesheldattheendoftheyear %Changeduring theyear[Ason31-March-2017]” [Ason31-March-2018]” theyear Demat Physical Total %ofTotal Demat Physical Total %ofTotal Shares Shares

A. Promoters (1) Indian a)Individual/HUF 4,759,414 - 4,759,414 66.23% 3,884,414 - 3,884,414 65.53% -0.70%b)CentralGovt - - - - - - - - 0.00%c)StateGovt(s) - - - - - - - - 0.00%d)BodiesCorp. 410,043 - 410,043 5.71% 410,043 - 4,10,043 6.92% 1.21%e)Banks/FI - - - - - - - - 0.00%f)Anyother - - - - - - - - 0.00%Sub Total (A) (1) 5,169,457 - 5,169,457 71.93% 4,294,457 - 4,294,457 72.45% 4.41% (2) Foreign a)NRIIndividuals 32,820 - 32,820 0.46% 32,820 - 32,820 0.55% 0.10%b)OtherIndividuals - - - - - - - - 0.00%c)BodiesCorp. - - - - - - - - 0.00%d)Anyother - - - - - - - - 0.00%Sub Total (A) (2) 32,820 - 32,820 0.46% 32,820 - 32,820 0.55% 0.12%TOTAL (A) 5,202,277 - 5,202,277 72.39% 4,327,277 - 4,327,277 73.00% -0.61% B. Public Shareholding 1. Institutions a)MutualFunds - - - 0.00% - - - 0.00% 0.00%b)Banks/FI - - - 0.00% - - - 0.00% 0.00%c)CentralGovt - - - 0.00% - - - 0.00% 0.00%d)StateGovt(s) - - - 0.00% - - - 0.00% 0.00%e)VentureCapitalFunds - - - 0.00% - - - 0.00% 0.00%f)InsuranceCompanies - - - 0.00% - - - 0.00% 0.00%g)FIIs - - - 0.00% - - - 0.00% 0.00%h)ForeignVentureCapitalFunds - - - 0.00% - - - 0.00% 0.00%i)Others(specify) - - - 0.00% - - - 0.00% 0.00%Sub-total (B)(1):- - - - 0.00% - - - 0.00% 0.00% 2. Non-Institutions a)BodiesCorp. - - - - - - - 0.00% 0.00%i)Indian - - - - - - - 0.00% 0.00%ii)Overseas - - - - - - - 0.00% 0.00%b)Individuals - - - 0.00% - - - 0.00% 0.00%i)Individualshareholdersholding 212,423 308,752 521,175 7.25% 298,295 185,323 483,618 8.16% 0.91%nominalsharecapitaluptoRs.1lakh ii)Individualshareholdersholding 770,957 - 770,957 10.73% 838,211 - 838,211 14.14% 3.41%nominalsharecapitalinexcessofRs1lakh c)Others(specify) NonResidentIndians 307,528 - 307,528 4.28% 181,984 - 181,984 3.07% -1.21%NonResidentIndians(NonRepat) 100 - 100 0.00% 1,001 - 1,001 0.02% 0.02%HUF 1,302 - 1,302 0.02% 5,153 - 5,153 0.09% 0.07%ClearingMembers 5,351 - 5,351 0.07% 7,528 - 7,528 0.13% 0.05%BodiesCorporate 357,299 20,700 377,999 5.25% 70,774 12,300 83,074 1.40% -3.86%ForeignBodies-DR 0 - - 0.00% - - - 0.00% 0.00%Sub-total (B)(2):- 1,654,960 329,452 1,984,412 27.61% 1,402,946 197,623 1,600,569 27.00% -0.61%Total Public (B) 1,654,960 329,452 1,984,412 27.61% 1,402,946 197,623 1,600,569 27.00% -0.61%C. Shares held by Custodian 0 - - 0.00% - - - 0.00% 0.00%for GDRs & ADRs Grand Total (A+B+C) 6,857,237 329,452 7,186,689 100.00% 5,730,223 197,623 5,927,846 100.00% -17.52%




FSL(ii) Shareholding of Promoter SN Shareholder’sName Shareholdingatthebeginningoftheyear Shareholdingattheendoftheyear (ason01stApril.2017) (ason31stMarch,2018) No.ofshares %oftotal %ofshares No.of %oftotal %of Sharesof Pledged Shares Sharesof shares the encombered the Pledged/ tototal company encumbered share tototal company shares1 Rakesh K. Jain 2,995,910 41.69% 0 2,495,910 42.10% 0 0.41%2 Prerna Jain 1,763,504 24.54% 0 1,388,504 23.42% 0 -1.12%3 Hope Consultants Limited 410,043 5.71% 0 410,043 6.92% 0 1.22%4 Vidha Jain 24,510 0.34% 0 24,510 0.41% 0 0.07%5 Aridhi Jain 8,310 0.12% 0 8,310 0.14% 0 0.02%6 Total 5,202,277 72.39% 0 4,327,277 73.00% 0 0.61%

(iii) Change in Promoters’ Shareholding (please specify, if there is no change) SN Particulars Date Reason ShareholdingatthebeginningoftheyearCumulativeShareholdingduringtheyear

No.ofShares %oftotalshares No.ofshares%oftotalshares1 Rakesh K. Jain Atthebeginningoftheyear 01/04/2017 2,995,910 41.69% 2,995,910 41.69% Changesduringtheyear 21/04/2017 Transfer 150,000 3145910 43.77% 09/02/2018 Transfer (650,000) 2,495,910 42.10% Attheendoftheyear 31/03/2018 2,495,910 42.10%2 Prerna Jain Atthebeginningoftheyear 01/04/2017 1,763,504 24.54% 1,763,504 24.54% Changesduringtheyear 21/04/2017 25,000 1,788,504 24.88% 09/02/2018 (400,000) 1,388,504 23.42% Attheendoftheyear 31/03/2018 1388504 23.42%3 Hope Consultants Limited Atthebeginningoftheyear 01/04/2017 410,043 5.70% 410,043 5.70% Changesduringtheyear Attheendoftheyear 31/03/2018 410,043 6.92%4 Aridhi Jain Atthebeginningoftheyear 01/04/2017 8,310 0.12% 8,310 0.12% Changesduringtheyear Attheendoftheyear 31/03/2018 8,310 0.14%5 Vidha Jain Atthebeginningoftheyear 04/01/2017 24,510 0.34% 24,510 0.34% Changesduringtheyear Attheendoftheyear 31/03/2018 24,510 0.41%

(iv) Shareholding Pattern of top ten Shareholders SN ForeachoftheTop Date Reason ShareholdingatthebeginningoftheyearCumulativeShareholdingduringtheyear 10shareholders (ason1stApril,2017) (ason31stMarch,2018) No.ofShares %oftotalshares No.ofshares%oftotalshares1 Ajai Chowdhry Atthebeginningoftheyear 04/01/2017 - 0.00% - 0.00% Changesduringtheyear 04/08/2017 Transfer 248,600 248,600 3.46% Attheendoftheyear 31/03/2018 248,600 4.19%2 Anita Mohan Atthebeginningoftheyear 01/04/2017 204,184 2.84% 204,184 2.84% Changesduringtheyear 10/11/2017 Transfer -21,000 183,184 2.55% 02/02/2018 Transfer -2,500 (2500) 180,684 2.51% Attheendoftheyear 31/03/2018 180,684 3.05%3 Manish Jain Atthebeginningoftheyear 01/04/2017 337,754 4.70% 337,754 4..70% Changesduringtheyear 04/08/2017 Transfer (170,000) 167,754 2.33% Attheendoftheyear 31/03/2018 167,754 2.83%

%changeinshareholdingduringtheyear




FSL4 Gita Chowdhry Atthebeginningoftheyear 01/04/2017 - 0.00% - 0.00% Changesduringtheyear 04/08/2017 Transfer 165,700 165,700 2.31% Attheendoftheyear 31/03/2018 165,700 165,700 2.80%5 Investor Education And Protection Fund Authority Atthebeginningoftheyear 01/04/2017 - 0.00% - 0.00% Changesduringtheyear 08/12/2017 Transfer 116,002 116,002 1.61% 15/12/2017 Transfer 2 116,004 1.61% Attheendoftheyear 31/03/2018 116,004 1.96%6 Leena Agarwal Atthebeginningoftheyear 01/04/2017 14,490 0.20% 14,490 0.20% Changesduringtheyear 04/04/2017 Transfer 25,000 39,490 0.55% Attheendoftheyear 31/03/2018 39,490 0.66%7 Sharad Jain Atthebeginningoftheyear 01/04/2017 77,935 1.08% 77,935 1.08% Changesduringtheyear 28/07/2017 Transfer (45,000) 32,935 0.46% Attheendoftheyear 31/03/2018 32,935 0.56%8 Pravin Agarwal Atthebeginningoftheyear 01/04/2017 172,584 2.40% 172,584 2.40% Changesduringtheyear 04/08/2017 Transfer (140,000) 32,584 0.45% Attheendoftheyear 31/03/2018 32,584 0.55%9 Renu Agrawala Atthebeginningoftheyear 01/04/2017 - 0.00% - 0.00% Changesduringtheyear 17/11/2017 Transfer 20,000 0.27% 20,000 0.28% Attheendoftheyear 31/03/2018 20,000 0.34% 20,000 0.34%10 Sunglow Capital Services Limited Atthebeginningoftheyear 01/04/2017 31,447 0.44% 31,447 0.44% Changesduringtheyear 07/04/2017 Transfer 1,772 33,219 0.46% 14/04/2017 Transfer 1,048 34,267 0.48% 21/04/2017 Transfer (28,939) 5,328 0.07% 28/04/2017 Transfer 7,124 12,452 0.17% 05/05/2017 Transfer 4,091 16,543 0.23% 12/05/2017 Transfer 18,248 34,791 0.48% 26/05/2017 Transfer 800 35,591 0.50% 02/06/2017 Transfer 565 36,156 0.50% 09/06/2017 Transfer 1,829 37,985 0.53% 16/06/2017 Transfer 2,725 40,710 0.57% 23/06/2017 Transfer 1,300 42,010 0.58% 28/07/2017 Transfer (1,099) 40,911 0.57% 04/08/2017 Transfer (13,000) 27,911 0.39% 25/08/2017 Transfer (200) 27,711 0.39% 01/09/2017 Transfer (700) 27,011 0.38% 08/09/2017 Transfer (130) 26,881 0.37% 15/09/2017 Transfer (650) 26,231 0.36% 22/09/2017 Transfer 496 26,727 0.37% 29/09/2017 Transfer 242 26,969 0.38% 06/10/2017 Transfer 300 27,269 0.38% 13/10/2017 Transfer 2,346 29,615 0.41% 20/10/2017 Transfer (1,653) 27,962 0.39% 27/10/2017 Transfer (1,396) 26,566 0.37% 03/11/2017 Transfer 100 26,666 0.37% 10/11/2017 Transfer 59 26,725 0.37% 17/11/2017 Transfer 508 27,233 0.38% 27/11/2017 Transfer 590 27,823 0.38% 01/12/2017 Transfer 150 27,973 0.39% 08/12/2017 Transfer (8,490) 19,483 0.27% 15/12/2017 Transfer (1,500) 17,983 0.25% 05/01/2018 Transfer (1,000) 16,983 0.24% 12/01/2018 Transfer (1,020) 15,963 0.22% 19/01/2018 Transfer (2,470) 13,493 0.19% 09/02/2018 Transfer 5,000 18,493 0.31% 09/03/2018 Transfer 528 19,021 0.32% 16/03/2018 Transfer 256 19,277 0.33% Attheendoftheyear 31/03/2018 19,277 0.33%




FSL(v) Shareholding of Directors and Key Managerial Personnel: SN ShareholdingofeachDirectors Date Reason Shareholdingatthebeginningoftheyear CumulativeShareholdingduringtheyear andeachKeyManagerial Personnel No.ofShares %oftotalshares No.ofshares%oftotalshares1 Rakesh K. Jain Atthebeginningoftheyear 01/04/2017 2,995,910 41.69% 2,995,910 41.69% Changesduringtheyear 21/04/2017 Transfer 150,000 3,145,910 3145910 43.77% 09/02/2018 Transfer (650,000) 2,495,910 42.10% Attheendoftheyear 31/03/2018 2,495,910 42.10%2 Sarabjeet Kaur Atthebeginningoftheyear 01/04/2017 - 0.00% - 0.00% Changesduringtheyear - - 0.00% Attheendoftheyear 31/03/2018 - - 0.00%3 Baljit Singh Bedi Atthebeginningoftheyear 04/01/2017 600 0.01% 600 0.01% Changesduringtheyear - - 0.00% Attheendoftheyear 31/03/2018 600 600 0.01%4 Gauri Shanker Pandey Atthebeginningoftheyear 01/04/2017 - 0.00% - 0.00% Changesduringtheyear - - 0.00% Attheendoftheyear 31/03/2018 - - 0.00%5 Charanjeet Singh Bedi Atthebeginningoftheyear 01/04/2017 - 0.00% - 0.00% Changesduringtheyear - - 0.00% Attheendoftheyear 31/03/2018 - - 0.00%6 Atul K. Jain Atthebeginningoftheyear 01/04/2017 10 0.00% 10 0.00% Changesduringtheyear - - 0.00% Attheendoftheyear 31/03/2018 10 10 0.00%7 Arun K. Jain Atthebeginningoftheyear 01/04/2017 210 0.00% 210 0.00% Changesduringtheyear - - 0.00% Attheendoftheyear 31/03/2018 210 210 0.00%8 Richa Arora Atthebeginningoftheyear 01/04/2017 - 0.00% - 0.00% Changesduringtheyear - - 0.00% Attheendoftheyear 31/03/2018 - - 0.00%9 Swarna Gowri S.# Atthebeginningoftheyear 01/04/2017 - 0.00% - 0.00% Changesduringtheyear - - 0.00% Attheendoftheyear 31/03/2018 - - 0.00%10 Mayank Agarwal # Atthebeginningoftheyear 01/04/2017 - 0.00% - 0.00% Changesduringtheyear - - 0.00% Attheendoftheyear 31/03/2018 - - 0.00%

#Mr.MayankAgarwalwasappointedastheChiefFinancialOfficerw.e.f21.10.2017duetotheresignationofMs.SwarnaGowriS.on21.10.2017.

V. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL A.RemunerationtoManagingDirector,Whole-timeDirectorsand/orManager: SN. ParticularsofRemuneration NameofMD/WTD/Manager TotalAmount Name GauriShankerPandey *RichaArora (Rs/Lac) Designation WholeTimeDirectors Whole-timeDirector 1 Grosssalary 7.22 4.17 11.39 (a)Salaryasperprovisionscontainedinsection - - - 17(1)oftheIncome-taxAct,1961 - - - (b)Valueofperquisitesu/s - - - 17(2)Income-taxAct,1961 - - - (c)Profitsinlieuofsalaryundersection - - - 17(3)Income-taxAct,1961 - - -2 StockOption - - -3 SweatEquity - - -4 Commission - - - -as%ofprofit - - - -others,specify - - -5 Others,pleasespecify(ConveyanceRembursement) - - - Total(A) 7.22 4.17 11.39 CeilingaspertheAct




FSL*Ms.RichaArorawasappointedasWhole-timeDirectoroftheCompanyw.e.f29.05.2017 B.RemunerationtootherDirectors

SN. ParticularsofRemuneration NameofDirectors TotalAmount (Rs/Lac)1 IndependentDirectors NIL NIL NIL - Feeforattendingboardcommitteemeetings NIL NIL NIL - Commission NIL NIL NIL - Others,pleasespecify NIL NIL NIL - Total(1) NIL NIL NIL -2 OtherNon-ExecutiveDirectors NIL NIL NIL - Feeforattendingboardcommitteemeetings NIL NIL NIL - Commission NIL NIL NIL - Others,pleasespecify NIL NIL NIL - Total(2) NIL NIL NIL - Total(B)=(1+2) NIL NIL NIL - TotalManagerialRemuneration NIL NIL NIL - OverallCeilingaspertheAct NIL NIL NIL -

C.RemunerationtoKeyManagerialPersonnelotherthanMD/Manager/WTD SN. ParticularsofRemuneration NameofKeyManagerialPersonnel TotalAmount MayankAgarwal (Rs/Lac) Designation CFO(ChiefFinancialOfficer)CS(CompanySecretary) 1 Grosssalary 5.01 5.01 (a)Salaryasperprovisionscontainedinsection 17(1)oftheIncome-taxAct,1961 - - - (b)Valueofperquisitesu/s - - - 17(2)Income-taxAct,1961 (c)Profitsinlieuofsalaryundersection - - - 17(3)Income-taxAct,19612 StockOption - - -3 SweatEquity - - -4 Commission - - - -as%ofprofit - - - -others,specify - - -5 Others,pleasespecify - - - Total 5.01 - 5.01

VI. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES: Type Sectionofthe BriefDescription DetailsofPenalty/Punishment/ Authority[RD/Appealmade,if CompaniesAct Compoundingfeesimposed NCLT/COURT]any(giveDeails) A.COMPANY Penalty NIL NIL NIL NIL NILPunishment Compounding B.DIRECTORS Penalty NIL NIL NIL NIL NILPunishment Compounding

C.OTHEROFFICERSINDEFAULT Penalty NIL NIL NIL NIL NILPunishment Compounding




FSLMANAGEMENT DISCUSSION AND ANALYSIS REPORT

1. Industry Structure and Development: DuringtheyearunderreviewtheStockMarketinIndiaimprovedby9.68%.NiftyImprovedfrom9,220.06ason1stApril,2017to10,113.70ason31stMarch,2018.Barringunforeseencircumstances,theCompanyexpectstoseeimprovedStockmarketduring2018-19also.Howeverthepriceofcrudeoilisincreasinginthecurrentperiod.Besides,theUSinterestRateisalsoincreasing.Duetoglobalstrategicsituations,increaseincrudeoilprices,USinterestratesandtheireconomy,IndianStockmarketmayremainvolatileduringthecurrentyear(i.e.2018-19).Hencetheincomefrominvestmentsmayremainlittlesubdued/uncertain.HoweverthebusinessofMutualFundDistributionisgivenmorestress,weexpecttodowellinthisregardduringthecurrentyear.Consideringabove,barringunforeseencircumstances,thecompanyshouldbeabletomaintainitsperformancesinthecomingyears.

2. Opportunities and threats ThegrowthoftheCompanyissubjecttoopportunitiesandthreatsasareapplicabletotheindustryfromtimetotime.

3. Segment wise performance & outlook Duringtheyearunderreview,theCompanyoperatesinonegeographicalsegmenti.e.India&hasidentifiedtwobusinesssegmentsi.e.Segment-IwhichisConsultancy,Commission&Brokerage&Segment-IIInvestments inBonds,Fixeddeposits&Loan&Advances.Thecompanyearnedprofitbefore taxofRs.251.15lakhsandincurredalossofRs.18.30lakhfromSegment-IandSegment-IIrespectively.

4. Outlook Inthenearfuture,theCompanyintendstocontinuetofocusonitscurrentbusinessofinvestmentandmanagementconsultation.

5. Risk and Concerns Whileriskisaninherentaspectofanybusiness,theCompanyisconsciousoftheneedtohaveaneffectivemonitoringmechanismandhasputinplaceappropriatemeasuresforitsmitigationincludingbusinessportfoliorisk,financialrisk,legalriskandinternalprocessrisks.

6. Internal Control Systems and their adequacy TheCompany’sinternalcontrolsystemsarecommensuratewiththenatureofitsbusinessandthesizeandcomplexityofitsoperations.ThesesystemsaredesignedtoensurethatallassetsoftheCompanyaresafeguardedandprotectedagainstanylossandthatalltransactionsareproperlyauthorized,recordedandreported.

7. Financial Performance

(Rupees in Lakhs)

Particulars Year ended 31.03.2018 Year ended 31.03.2017

Sales/incomefromoperations 351.09 80.64

OtherIncome 944.97 479.36

Expenses 134.14 68.35

ProfitBeforeTax 1161.92 491.65

Less:TaxExpense

-CurrentTax 231.02 88.92

-MatCreditEntitlement (65.09) (46.85)

-DeferredIncomeTax (0.41) (0.39)

ProfitAfterTax 996.40 449.97

ProposedDividend 29.64 35.93



FSL ThedetailsoffinancialperformanceoftheCompanyareappearingintheBalanceSheetandStatementofProfitandLossfortheyear.

8. Human Resources

TheCompanyseeksrespectsandvaluesthediversequalitiesandbackgroundthatitspeoplebringtoitandiscommittedtoutilizingtherichnessofknowledge,ideas,experiencethatthisdiversityprovides.TheCompanyhasbuiltaresourcebaseandcross-functionalmanagerstotakecareofmultidimensionalbusinesses.

9. Disclosure of Accounting Treatment

TheFinancialStatementhasbeenpreparedinAccordancewiththePrincipleslaiddowninAccountingStandards.

10. Cautionary Statement

StatementinthisManagementDiscussionandAnalysisReportdescribingthecompany’sobjective,projects,estimatesandexpectationsmaybe“forwardlookingstatements”withinthemeaningofapplicablelawsandregulations.Actualresultsmaydiffermateriallyfromthoseeitherexpressedorimplied.ImportantfactorsthatcouldmakedifferencetotheCompany’soperationswithinincludingchangeingovernmentregulations,taxregimes,andeconomicdevelopmentwithinandoutsideIndia.


ForFRONTLINE SECURITIES LIMITED

Place: Noida RICHA ARORA

Date: 28.05.2018 Whole Time Director & Company Secretary

DIN:07825684



FSLREPORT ON CORPORATE GOVERNANCE

1. Company’s Philosophy on Code of Corporate Governance

FSL’s governance philosophy is based on entrustment, transparency and accountability.CorporateGovernance is the set of standardswhich aims to improve theCompany’s image, efficiency andeffectiveness.ItistheroadmapwhichguidestheBoardofDirectorsoftheCompanytogoverntheaffairsoftheCompanyinamannermostbeneficialtoalltheshareholders,thecreditors,theGovernmentandtheSociety.

TheBoardofDirectors believes thatCorporateGovernance is themost powerful tool for achievingCorporateexcellenceanditalsopresentsaComplianceReportontheCorporateGovernancepursuanttolistingRegulationsandtheCompanyendeavorstoadoptthebestpractices.

2. Board Composition and Particulars of Directors

TheBoardofDirectorsoftheCompanyhaveanoptimumcombinationofExecutive,Non-ExecutiveandIndependentDirectorswhohaveanin-depthknowledgeofbusiness,inadditiontotheexpertiseintheirareasofspecialization.Atpresent,theBoardoftheCompanycomprisesofEightDirectorsincludingtwoWomenDirectorsandfourIndependentDirectors.NoneoftheDirectorsontheBoardisamemberofmorethan10CommitteesandChairpersonofmorethanfivecommitteesacrossallthecompaniesinwhichhe/sheisadirector.

ThecompositionoftheBoardandcategoryofDirectorsareasfollows:

Category Name of Directors

Non-Executive&PromoterDirector(Chairman) Mr.RakeshK.Jain

Non-ExecutiveIndependentDirector Mr.ArunK.Jain

Dr.CharanjeetSinghBedi

Mr.BaljitSinghBedi

Mr.AtulK.Jain

Non-ExecutiveNonIndependentWomanDirector Mrs.SarabjeetKaur

WholeTimeDirector(ExecutiveDirector)* Mr.GauriShankerPandey

WholeTimeDirector(ExecutiveDirector) Ms.RichaArora

*TheBoardhasre-appointedMr.GauriShankerPandey,asaWholeTimeDirectoroftheCompany,fortheperiodoffiveyearsw.e.f16thMarch,2018subjecttotheapprovalofmembersintheensuingAnnualGeneralMeeting.

AlltheIndependentDirectorsoftheCompanyfurnishadeclarationannuallythattheyqualifytheconditionsoftheirbeingindependent.

TheCompanyhasputinplaceafamiliarizationprogramfortheIndependentDirectors,theirroles,rights,responsibilitiesintheCompanyandrelatedmatters.QuarterlyupdatesonrelevantstatutorymattersarealsoinformedtoDirectors.DetailsoffamiliarizationprogramareavailableonthewebsiteoftheCompanyatthelinkhttp://fslindia.com/pdf/FAMILIARIZATION+PROGRAMMES.pdf



FSLDisclosure of Relationships between Directors Inter-Se

NoDirectorisrelatedtoanyotherDirectorontheBoardintermsofthedefinitionof“relative”givenundertheCompaniesAct,2013.

Theshareholdingofnon-executivedirectorsasonMarch31st,2018isasfollows:

Name No. of shares held

RakeshK.Jain 24,95,910

AtulK.Jain 10

ArunK.Jain 210

Dr.C.S.Bedi Nil

BaljitSinghBedi 600

SarabjeetKaur Nil

Total 24,96,730

Director Retiring by Rotation

DetailsofDirectorretiringbyrotationareasfollows:

Mrs.SarabjeetKaur,aCompanySecretaryandaLawGraduatehasbeenontheBoardoftheCompanysince2002.BesidesbeingaDirector,Mrs.SarabjeetKaurisamemberoftheStakeholderrelationshipCommitteeoftheCompany.WithherexpertiseincorporatelawsshehascontributedextensivelytothegrowthoftheCompany.

Mrs.SarabjeetKaurdoesnothaveanyInter-seRelationshipwiththeotherDirectorsontheBoardoftheCompanyandatpresentsheisnotholdinganysharesintheCompany.

Board Meetings and Board Committee Meetings

TheBoardofDirectorsistheapexbodyconstitutedbytheshareholdersforoverseeingtheoverallfunctioningoftheCompany.TheBoardprovidesandevaluatesthestrategicdirectionoftheCompany,managementpoliciesandtheireffectivenessandensuresthatthelong-terminterestsoftheshareholdersarebeingserved.TheBoardmeetsatregularintervals.ThedetailsofBoardMeetingsheldduringtheyearunderreviewareasfollows:

Number of Board Meetings and dates on which held

Duringtheyearunderreview,Nine(9)BoardMeetingswereheld.ThedetailsoftheBoardMeetingareasunder:

S. No. Date of Board Meeting Board Strength No. of Directors present

1. 8thApril,2017 7 6

2. 17thMay,2017 7 6

3. 29thMay,2017 7 6

4. 24thJune,2017 8 8

5. 14thAugust,2017 8 7

6. 20thOctober,2017 8 7

7. 10thNovember,2017 8 6

8. 15thJanuary,2018 8 8

9. 23rdMarch,2018 8 8



FSLAttendance of Each Director at the Board Meetings, last Annual General Meeting (AGM) and number of other Directorships and Memberships of Committee(s) of each Director in various companies are as follows:

Particulars of attendance at Board Meetings and last Annual General meeting

S.No

12345678

Name of Director

Mr.RakeshK.JainMr.AtulK.JainMr.ArunK.JainDr.CharanjeetSinghBediMrs.SarabjeetKaurMr.BaljitSinghBediMr.GauriShankerPandeyMs.RichaArora

Board Meetings

89969966*

Last AGM

YesYesYesYesYesYesYesYes

Other Directorships #

60120120

No. of Membership(s) / Chairmanship of Board Committee in other CompaniesNILNILNILNILNILNILNILNIL

Attendance at Meetings during 2017-2018

No. of other Directorship and Committee Member/ Chairmanship

*Ms. Richa Arora was appointed as a Whole Time Director w.e.f 29.05.2017.

# The Directorship held by Directors as mentioned above does not include the directorship in Foreign Companies and in Frontline Securities Limited.

Details of other Committee Position of Director/CFO in Company

Name of the

Committee

Audit

Committee

Stakeholders

Relationship

Committee

Nomination

and

Remuneration

Committee

Corporate

Social

Responsibility

Committee

Risk

Management

Committee

Chairman

ChairmanChairman

Chairman

AtulK.Jain

ArunK.Jain

Member

Dr.Charan

-jeetSingh.

Bedi

Baljit

SinghBedi

Sarabjeet

Kaur

Gauri

Shanker

Pandey

Mayank

Agarwal

Member Member -

Member Member

- -

- - -

- -- -

- -- - MemberMember

Member Member-- -Member

Chairman

- Member Member



FSL3. Independent Directors

TheCompanyhascompliedwiththedefinitionofIndependenceasperRegulation16ofSEBI(ListingObligationandDisclosureRequirements)Regulations2015andaccordingtotheprovisionsofsection149(6)CompaniesAct,2013.TheCompanyhasalsoobtaineddeclarations fromall the IndependentDirectorspursuanttosection149(7)oftheCompaniesAct,2013.

Separate Meeting of the Independent Directors:

TheIndependentDirectorsheldameetingonJanuary15th,2018,withouttheattendanceofNon-IndependentDirectorsandmembersofManagementthereintoreviewtheperformanceofNon-IndependentDirectorsandtheBoardasawhole.AlltheIndependentDirectorswerepresentatthemeeting.

4. Audit Committee

1. Composition

Presently,theAuditCommitteecomprisesof4(four)membersviz.Mr.AtulKumarJain,Mr.ArunkumarJain,Mr.BaljitSinghBediandDr.CharanjeetSinghBedi.TheAuditCommitteeisbeingchairedbyMr.AtulK.Jain.AllthemembersoftheAuditCommitteearetheNon-ExecutiveandIndependentDirector,majorityofthemembersofAuditCommitteehaveaccountingandfinancialmanagementexpertise.

TheCompanySecretaryactasaSecretaryoftheAuditCommittee.

2. Terms of Reference

ThepowersandtermsofreferenceoftheAuditCommitteeareasmentionedinRegulation18ofSEBI(ListingObligationsandDisclosureRequirements)Regulations2015andsection177oftheCompaniesAct,2013whichinteralia,includeoverseeingfinancialreportingprocesses,reviewingwiththemanagementthefinancial statements, accountingpolicies andpractices, adequacyof internal audit functions anddiscussionwithinternalauditorsonanysignificantfindings,financialandriskmanagementpolicies.

3. Meetings and attendance during the year

TheAuditCommitteemetSix(6)timesduringtheFinancialYear2017-2018.Thedetailsofattendanceatthesemeetingsareasfollows:

TheMinutesoftheAuditCommitteeMeetingsarenotedattheBoardmeetings.

TheChiefFinancialOfficerandAuditorsareinviteestotheAuditCommitteeMeeting.

Name Position Attendance at the Meeting held on

Mr.AtulK.Jain Chairman Yes Yes Yes Yes Yes Yes

Mr.ArunK.Jain Member Yes Yes Yes Yes Yes Yes

Dr.Charanjeet Member Yes No No Yes No Yes

SinghBedi

Mr.Baljit Member Yes Yes Yes Yes Yes Yes

SinghBedi

8th April, 2017

17th May, 2017

29th May, 2017

14th Aug, 2017

10th Nov, 2017

15th Jan, 2018



FSL5. Stakeholder Relationship Committee


Thepowers and termsof referenceof theStakeholderRelationshipCommittee are asmentioned inRegulation20ofSEBI(ListingObligationsandDisclosureRequirements)Regulations2015andsection178oftheCompaniesAct,2013whichinteralia,includethemonitoringandexpeditiousredressalofinvestors/stakeholdersgrievancesandensuresthatallissues/concernsofstakeholdersareaddressed/resolvedpromptly.TheStakeholderRelationshipCommitteehasbeenconstitutedtoattend&resolvetherequestsofdematerializationofshares,rematerialisationofshares,sharetransferandtoredressinvestor’sgrievance/complaintsandregularcorrespondencesuchasnon-receiptofAnnualReport,non-receiptofDividendandentertainssuchotherrelatedmatters.

2. Composition of the Committee

TheCommitteeconsistsof2Non-ExecutiveIndependentDirectorsand1Non-ExecutiveNon-IndependentDirector.TheStakeholderRelationshipCommitteeisbeingchairedbyMr.AtulK.Jain.


DuringtheFinancialYearendedMarch31st,2018,Twenty(20)meetingsoftheStakeholderRelationshipCommitteewereheld.ThecompositionoftheCommitteeanddetailsofmeetingsheldandattendancerecordedofthemembersareasfollows:

ThemeetingswerepresidedoverbyMr.AtulK.Jain,aNon-ExecutiveDirector.

4. Name and Designation of Compliance Officer

RichaArora,CompanySecretary is theComplianceOfficer for complyingwith the requirementsofSecuritiesLawsandRegulation6ofSEBI(ListingObligationsandDisclosureRequirements)Regulations2015.

Duringtheyearunderreviewthecompanyhasreceived32complaints/correspondencefrominvestors/membersandnoinvestorcomplaints/correspondenceispendingasonMarch31st,2018.

AsonMarch31st,2018,thereisnopendingrequestforsharetransfer,dematerializationorrematerializationofshares.

6. Nomination and RemunerationCommittee


ThepowersandtermsofreferenceoftheNominationandRemunerationCommitteeareasmentionedinRegulation19ofSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015andsection178oftheCompaniesAct,2013.

TheNominationandRemunerationcommitteerecommendstotheboardthesetupandcompositionoftheboardanditscommitteesincludingtheformulationofthecriteriafordeterminingqualifications,positiveattributesandindependenceofadirector.

The committee periodically reviews the composition of the boardwith the objective of achievingan optimumbalance of size, skills, independence, knowledge, age, gender and experience and alsorecommendstotheboardtheappointmentorreappointmentofdirectors.

Name of Member Position No. of Meetings held Attendance

AtulK.Jain Chairman 20 20

ArunK.Jain Member 20 20

SarabjeetKaur Member 20 20



FSL2. Composition

TheNomination andRemunerationCommittee of theCompany consists of threeNon-ExecutiveIndependentDirectors.


DuringtheyeartheCommitteehadtwo(2)meetingsi.eon8thApril,2017and20thOctober,2017.

4. Composition, name of Members and attendance during the year


ArunK.Jain Chairman 2 2

Dr.CharanjeetSingh.Bedi Member 2 2

BaljitSinghBedi Member 2 2

5. Performance Evaluation of Non-Executive and Independent Directors

TheBoardevaluatestheperformanceofNon-executiveandIndependentDirectorseveryyear.AlltheNon-executiveandIndependentDirectorsareeminentpersonalitieshavingwideexperienceinthefieldofbusiness,industryandadministration.TheirpresenceontheBoardisadvantageousandfruitfulintakingbusinessdecisions.

6. Remuneration of Directors.

(a) Pecuniary relationship or transaction of the non-executive directors

CompanyhasnopecuniaryrelationshipwithNon-ExecutiveDirectors

(b) Criteria of making payment to Non-Executive Directors

AtpresentnoremunerationisbeingpaidtotheNon-ExecutiveDirectors.

(c) Disclosure with respect to remuneration made to executive director viz. Gauri Shanker Pandey & Ms. Richa Arora (Whole Time Directors of the Company) : in addition to disclosures required under the Companies Act, 2013

S.no

1234

567

Particulars

BasicHRAConveyanceOtherAllowancesGross SalaryGratuityBonus(QuarterlyPayable)PF(EmployeeContribution)CTC( Cost to Company)

Mr. Gauri Shanker Pandey40,00015,0001,6002,20058,800-

1,4004,80065,000

Ms. Richa Arora12,50012,5001,6007,37533,9756251,4001,50037500

Monthly Remuneration Amount (in Rs.)



FSLForanyterminationofcontract,theCompanyortheWholeTimeDirectorisrequiredtogiveanoticeofonemonthforeveryyearofserviceorapartthereofexceedingthreemonthssubjecttoamaximumoftwomonth’snoticeorpaymentofequivalentgrossmonthlysalaryinlieuthereofoneitherside.

TheCompanydoesnothaveanystockoptionscheme.

7. Corporate Social Responsibility Committee (CSR)

i) Terms of reference:

TheCSRCommitteeformulatesandrecommendstotheboard,aCorporateSocialResponsibility(CSR)Policy,recommendstheamountofexpendituretobeincurredtowardssocialresponsibilityandalsooverseesactivitiesimpactingthequalityoflifeofvariousstakeholders.

ii) Composition:

TheCSRCommitteeoftheCompanyconsistsoftwoNon-ExecutiveIndependentDirectorsandoneWholeTimeDirector.

iii) No. of Meetings held during the year:

DuringtheyeartheCommitteehadonemeetingheldon23rdMarch,2018.

iv) Composition, name of Members and attendance during the year


AtulK.Jain Chairman 1 1


GauriShankerPandey Member 1 1

8. Risk Management committee

i) Terms of reference:

TheBoardoftheCompanyhasformedaRiskManagementCommitteetoframe,implementandmonitortheriskmanagementplanfortheCompany.Thecommitteeisresponsibleforreviewingtheriskmanagementplanandensuringitseffectiveness.

ii) Composition:

TheRiskManagementCommitteeof theCompanyconsistsof twoNon-ExecutiveIndependentDirectorsandoneWholeTimeDirectorandoneChiefFinancialOfficer.

iii) No. of Meetings held during the year:

DuringtheyeartheCommitteehadonemeetingon7thFebruary,2018.

iv) Composition, name of Members and attendance during the year


GauriShankerPandey Chairman 1 1


AtulK.Jain Member 1 1

Mr.MayankAgarwal Member 1 1



FSL9. Details of General Body Meetings

1. ThelocationandtimeforlastthreeAnnualGeneralMeetingsisasfollows:

Year

2014-15

2015-16

2016-17

Location

PHDHouse-LakshmipatSinghaniaAuditorium,4/2,SiriInstitutionalArea,

AugustKrantiMarg,NewDelhi-110016

PHDHouse-LakshmipatSinghaniaAuditorium,4/2,SiriInstitutionalArea,


PHDHouse-LakshmipatSinghaniaAuditorium,4/2,SiriInstitutionalArea,AugustKrantiMarg,NewDelhi-110016

Date

September22,2015

September20,2016

August9,2017

Time

09.45A.M

09:45A.M

09:45A.M

Whether any special resolution passed therein

No

No

Yes

2. Postal Ballot

Duringthefinancialyear2017-18,theCompanyhasobtainedmembersapprovalthroughPostalBalloton8thDecember,2017forthefollowingresolutionsasstatedinthetablebelowalongwiththesnapshotofthevotingresultsareasfollows:

a) Agenda 1 : Approval for Buyback of Equity Shares

(i) Voted in favour of Resolution:

Number of

Members Voted

17

5

Mode of Voting

E-Voting

PostalBallot

Total

Number of Votes cast by them

64,20,547

90,939

65,11,486

% of total number of valid Votes cast

98.60341

1.39659

100.00%

Number of Members Voted

17

5

Mode of Voting

E-Voting

PostalBallot

Total


-

-

-


-

-

-

(ii) Voted against the Resolution :



FSLb) Agenda 2: Rearrangement and Realignment of the Object Clause of the Memorandum of Association of the Company

(i) Voted in favour of Resolution:

(ii) Voted against the Resolution :

3. Mr.MohitKhemka(M.No410605),ofM/sVMG&CompanyPracticingCharteredAccountant(FRN:024257N)wasappointedasscrutinizerforcarryingoutthevotingprocessinafairandtransparentmanner.

4. Nospecialresolutionisproposedtobepassedthroughpostalballot.However,Companywillconsiderasandwhenrequired.

5. Procedure for Postal Ballot:

i. InCompliancewiththeSection110andotherapplicableprovisionsoftheActreadwiththerelatedRules,theCompanyprovidede-votingfacilitytoallitsmembers.TheCompanyhasengagedtheservicesofCDSLforprovidingthee-votingfacilitytothemembers.

ii. ThemembershastheoptiontovoteelectronicallyorthroughPostalBallotforms.

iii. MemberswhosenamesappearontheRegisterofMembers/ListofBeneficialOwnersasontheCut-offdate,willbeconsideredforthepurposeofvoting.

iv. TheCompanyalsopublishedthenoticeinthenewspaperdeclaringthedetailsofcompletionofdispatchandotherrequirementsasmandatedintheActandotherapplicableRules.

v. TheCompanyhasdispatchedthePostalBallotnoticesalongwithPostalBallotformsthroughelectronicmodetothosemembers,whosee-mailaddressesareregisteredwiththeCompany/Depository,unlessanymemberhasrequestedforaphysicalcopyofthesame.Formemberswhohavenotregisteredtheire-mailaddresses,physicalcopiesarebeingsentbypermittedmode.

vi. ThePostalBallotFormandapostageprepaidself-addressedbusinessreplyenvelopearewereattachedtotheNotice.Theself-addressedenvelopecontainedtheaddresstowhichdulycompletedPostalBallotFormshouldbesent.

vii.ThevotingrightsfortheEquitySharesoftheCompanyareonevoteperequityshare,registeredinthenameofthemember.Thevotingrightsofthemembersshallbeinproportiontothepercentageofpaid-upsharecapitaloftheCompanyheldbythem,whichwillbedeterminedonthebasisofthepaid-upvalueofsharesregisteredinthenameofeachmemberasonthecutoffdate.

viii.TheScrutinizercarriedoutthescrutinyofthePostalBallotFormstogetherwithresultsoftheE-VotingandsubmittedhisreportonPostalBallotandE-VotingtotheChairmanoftheCompany.

Number of

Members Voted

17

5

Mode of Voting

E-Voting

PostalBallot

Total


64,20,546

90,939

65,11,485


98.60340

1.39659

99.99999

Number of

Members Voted

17

5

Mode of Voting

E-Voting

PostalBallot

Total


1

-

1


0.00001

-

0.00001



FSL10. Disclosures

1. The particulars of transactions between theCompany and its related parties as per theAccountingStandard18“RelatedPartyDisclosures”issuedbytheInstituteofCharteredAccountantsofIndia(ICAI)aredisclosedinNoteNo.2.22ofNotestotheFinancialStatements.However,thesetransactionsarenotlikelytohaveanyconflictwiththeCompany’sinterest.

2. NoStrictures/PenaltieshavebeenimposedontheCompanybytheStockExchangeor theSecuritiesandExchangeBoardofIndia(SEBI)oranystatutoryauthorityonanymattersrelatedtocapitalmarketsduringthelastthreeyears.

3. TheCompanydoesnothaveanymateriallysignificantrelatedpartytransactionsthatmayhavepotentialconflictwiththeinterestsoflistedentity.

4. ThepolicyondealingwiththerelatedpartytransactionsisavailableontheWebsiteoftheCompanyonhttp://www.fslindia.com/pdf/RPT.pdf.

5. Inthepreparationofthefinancialstatements,theCompanyhasfollowedtheAccountingStandardsissuedbyICAI.Thesignificantaccountingpolicies,whichareconsistentlyapplied,havebeensetoutintheNotestotheFinancialStatements.

6. ThecompanyhasestablishedaVigilMechanismforalldirectors&employeestoreportconcernsaboutunethicalbehavior,actualorsuspectedfraudorviolationofthecompany’scodeofconduct.AndaspertheCompany’sPolicyanyPersonnelcanapproachAuditCommittee.Howevernosuchinstancehasbeenreportedduringtheyearunderreview.

7. TheCompanyhascompliedwithallthemandatoryrequirementsoftheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015.

11. Means of Communication of Financial Results

• Thequarterlyun-auditedfinancialresultsareannouncedwithinthetimeframestipulatedundertheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015.TheaforesaidfinancialresultsaretakenonrecordbytheBoardofDirectorsandarecommunicatedtotheBombayStockExchange(BSE)wherethecompany’ssecuritiesarelisted.

• OncetheStockExchangehasbeenintimated,theseresultsarepublishedinnewspapers,usually,EnglishNewspaper:FinancialExpressandHindiNewspaper:Jansatta.TheresultsandofficialnewsreleasesoftheCompanyarealsomadeavailableontheCompany’swebsitei.e.www.fslindia.com.

12. SEBI Complaints Redressal System(SCORES):

SEBIhasinitiatedSCORESforprocessingtheinvestorcomplaintsinacentralizedwebbasedredresssystemandonlineredressesofalltheshareholderscomplaints.ThecompanyisincompliancewiththeSCORESandredressedtheshareholderscomplaintswellwithinthestipulatedtime.

13. General MemberInformation

i) The Details of Annual General Meeting to beheld:

Date September25th,2018

Day Tuesday

Time 9:45A.M.

Venue PHDHouse-LakshmipatSinghaniaAuditorium,4/2,SiriInstitutionalArea,




FSLii) Financial Calendar

Resultsforthequarterended30thJune,2018

Resultsforthequarterended30thSeptember,2018

Resultsforthequarterended31stDecember,2018

Resultsfortheyearended31stMarch,2019

Willbeannouncedon/before14thAugust,2018

Willbeannouncedon/before14thNovember,2018.

Willbeannouncedon/before14thFebruary,2019.

Willbeannouncedon/before30thMay,2019.

iii) Book Closure Dates: September19th,2018(Wednesday)

to

September25th,2018(Tuesday)

iv) Dividend Payment date:Credit/dispatchofdividendwarrantsbetweenSeptember25th,2018andOctober15th,2018.

ShareholderswhohaveoptedforECS,dividendwillbecrediteddirectlytotheirrespectivebankaccountsthroughECS.Forothers,dividendwarrantswillbedispatchedasperthedividendpaymentdatementionedabove.

v) Listing on Stock Exchange :TheEquitysharesoftheCompanyarelistedwithBombayStockExchangeLtd.(theListingFeeshasbeenpaidforFY17-18)

vi) Stock Code 533213

vii) ISIN INE773B01012

viii) Stock Market Price Data

Apr-17

May-17

Jun-17

Jul-17

Aug-17

Sep-17

Oct-17

Nov-17

Dec-17

Jan-18

Feb-18

Mar-18

61.20

61.60

52.55

63.00

62.90

63.00

63.00

63.00

62.00

81.50

80.90

78.00

40.00

49.00

46.05

50.50

55.00

50.60

55.10

53.20

57.85

57.50

63.65

59.65

Bombay stock Exchange(BSE) (in Rs. Per Share)Month’s High Price Month’s Low Price

MONTH



FSLPerformanceincomparisontobroad-basedindicessuchasBSESensex:

ComparisonisdonebetweentheSharePriceDailyclosingandSensexIndexclosinglevel.

ix) Registrar & Share Transfer Agents: M/sLinkIntimeIndiaPrivateLimited, 44CommunityCentre,2ndFloor, NarianaIndustrialArea,PhaseI, NearPVRNaraina,N.D.-11008, Email:[email protected]

Share Transfer System

TheShareTransferspertainingtoshareinPhysicalModeareregisteredandreturnedwithinthestipulatedtime, ifdocumentsarecomplete inallrespects.Inrespectof thesharesheldindematerializedmode, thetransfertakesplaceinstantaneouslybetweenthetransferor,transfereeandtheDepositoryParticipantthroughelectronicdebit/creditoftheaccountsinvolved.

x) Distribution of Shareholding as on March 31st, 2018 is as follows:

Shareholding of Shares

1-500

501-1000

1001-2000

2001-3000

3001-4000

4001-5000

5001-10000

10001&above

TOTAL

Folios

Numbers2299

104

39

14

9

3

9

17

2494

%92.18

4.17

1.57

0.56

0.36

0.12

0.36

0.68

100.00

Shares

Numbers245135

86611

55716

36541

32649

13138

66238

5391818

5927846

%4.14

1.46

0.94

0.62

0.55

0.22

1.12

90.95

100.00



FSLxi) Shareholding Pattern as on March 31st , 2018 is as follows:

S. No.

1.

2.

Category

Promoters

SubTotal(A)

PublicShareholding

o BodiesCorporate

o Individuals

o Others

SubTotal(B)

Grand Total (A)+(B)

No. of equity shares

43,27,277

43,27,277

83,074

12,05,825

3,11,670

16,00,569

59,27,846

% of shares

73.00

73.00

1.40

20.34

5.26

27.00

100

xii) Dematerialization of shares andLiquidity

Ason31stMarch2018,57,30,223sharesaggregatingto96.67%ofthepaidupsharecapitalareheldindematerializedmode.

xiii) Outstanding GDRs/ADRs/Warrants

NoGDR/ADR/WarrantoranyconvertibleinstrumenthasbeenissuedbytheCompany.

xiv) Address for correspondence

Themembersmayaddresstheircommunication/grievances/queriestotheCompany/RegistrarandShareTransferAgentatthefollowingaddress:

Link Intime India Private Limited Frontline Securities Ltd.44,CommunityCentre Registered Office:2ndFloor,NarainaIndustrialArea, M-6,M-BlockMarketPhaseI,NearPVR,Naraina GreaterKailash-II,NewDelhi-110028 NewDelhi-110048ContactNo:011-41410592/93/94 Tel:+91-120-2534066 Branch Office: B-22,Sector-4,Noida-201301 Tel:+91-120-2534066 Fax:+91-120-2534111

Membersarerequestedtoquotetheirfolionumber/DPID&ClientIDinalltheircorrespondencewiththeCompany/RTA.

14. Prevention of Insider Trading

InaccordancewiththerequirementsofSEBI(ProhibitionofinsiderTrading)Regulations2015,thecompanyhasinstitutedacodeofconductforprohibitionofinsidertradinginthecompany’sshares.

15. Reconciliation of Share Capital Audit

AsstipulatedbySEBI,aqualifiedPracticingCompanySecretarycarriesouttheReconciliationofShareCapitalAudittoreconcilethetotaladmittedcapitalwithNationalSecuritiesDepositoryLimited(NSDL)andCentralDepositoryServices(India)Limited(CDSIL)andthetotalissuedandpaid-upcapital.ThisauditiscarriedouteveryquarterandthereportthereonissubmittedtothestockexchangesandisplacedbeforetheBoard



FSLofDirectorsoftheCompany.Theaudit,interalia,confirmsthatthelistedandpaidupcapitalofthecompanyisinagreementwiththeaggregateofthetotalnumberofsharesindematerializedformheldwithNSDLandCDSILandthetotalnumberofsharesinphysicalform.

16. Transfer of Unclaimed Dividend To Investor Protection Fund

TransferofUnclaimedDividendtoInvestorEducationandProtectionFund(IEPF)PursuanttotheprovisionsofSection124oftheCompaniesAct,2013,thedividendamountswhichhaveremainunpaidorunclaimedforaperiodofsevenyearsfromthedateofdeclarationhavebeentransferredbytheCompanytotheInvestorEducationandProtectionFund(“IEPF”)establishedbytheCentralGovernmentpursuanttoSection125ofthesaidAct.ShareholderswhohavenotencashedtheirdividendwarrantsrelatingtothedividendrelatedtoFY2010-11andsubsequentyearssendtheirrequestforissueofduplicatewarrants.OnceunclaimeddividendistransferredtotheIEPFAuthority,thesamecanbeclaimedfromtheIEPFAuthorityafterfollowingtheproceduresprescribedintheIEPFRules.

DuringtheYear,Companyhastransferred1,16,004ofEquitysharestoIEPFSuspenseAccount.

17. CEO / CFO Certification

InaccordancewiththerequirementsofSEBI(ListingObligationsandDisclosureRequirements)Regulations2015,CA.MayankAgarwal, theCFOof theCompany,has certified to theBoard that to thebestofhisknowledgeandbelief,thefinancialstatementsandCashFlowstatementspresentatrueandfairviewoftheCompany’saffairs.TheCFOCertificationisprovidedintheAnnualReport.

18. Code of Conduct

TheCompanyhaslaiddownaCodeofConductforalltheBoardMembersandSeniorManagementPersonnel.AllBoardMembersandSeniorManagementPersonnelhaveconfirmedcompliancewiththesaidcodeofconductforthefinancialyearendedMarch31st,2018.ThedeclarationtothiseffectsignedbytheWhole-TimeDirectorformspartofthereport.

19. Compliance Certificate on the Corporate Governance from the Auditors

ThecertificatedatedMay28,2018obtainedfromStatutoryAuditorsoftheCompany,M/s.WalechaInder&Associates,confirmingcompliancewiththeCorporateGovernancerequirementsasstipulatedunderScheduleVreadwithRegulation34(3)ofSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015,isannexedhereto.

20. Green Initiative in the Corporate Governance:

Aspartofthegreeninitiativeprocess,theCompanyhastakenaninitiativeofsendingdocuments/AnnualReportbyemail.Physicalcopiesaresentonlytothoseshareholderswhoseemailaddressesarenotregisteredwiththecompanyoronspecificrequest.ShareholdersarerequestedtoregistertheiremailidwithRegistrarandShareTransferAgent/concerneddepositoryandCompanytoenabletheCompanytosendthedocumentsinelectronicform.



Place: Noida Richa Arora

Date: 28.05.2018 Whole Time Director and Company Secretary

DIN:07825684



FSLCERTIFICATE BY THE CHIEF FINANCIAL OFFICER (CFO)PURSUANT TO PART B SCHEDULE II READ WITH REGULATION 17(8) OF SEBI (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS)REGULATIONS, 2015

TheBoardofDirectorsFrontlineSecuritiesLimitedM-6,IIndFloor,M-BlockMarket,GreaterKailash-II,NewDelhi-110048

I,C.A.MayankAgarwal.,ChiefFinancialOfficerofFrontlineSecuritieslimited,tothebestofmyknowledgeandbelief,certifythat:

A. Ihavereviewedfinancialstatementsandthecashflowstatementfortheyearandthattothebestofmyknowledgeandbelief:

1) Thesestatementsdonotcontainanymateriallyuntruestatementoromitanymaterialfactorcontainstatementsthatmightbemisleading;

2) ThesestatementstogetherpresentatrueandfairviewofCompany’saffairsandareincompliancewithexistingaccountingstandards,applicablelawsandregulations.

B. Thereare,tothebestofmyknowledgeandbelief,notransactionsenteredintobytheCompanyduringtheyearwhicharefraudulent,illegalorviolativeofcompany’scodeofconduct.

C. IacceptresponsibilityforestablishingandmaintaininginternalcontrolsforfinancialreportingandthatI have evaluated the effectivenessof internal control systemsof the companypertaining tofinancialreporting.Ihavenotcomeacrossanyreportabledeficienciesinthedesignoroperationofsuchinternalcontrols.

D. IhaveindicatedtotheauditorsandtheAuditCommittee- 1) Thattherearenosignificantchangesininternalcontroloverfinancialreportingduringtheyear; 2) Thattherearenosignificantchangesinaccountingpoliciesduringtheyear;and 3) ThattherearenoinstancesofsignificantfraudofwhichIhavebecomeaware.

Place:Noida Mayank AgarwalDate:28.05.2018 Chief Financial Officer

M.NO:544992



FSLDeclaration by Whole Time Director under Regulation 34(4) and Schedule V of SEBI (Listing Obligations and Disclosures Requirements) Regulations 2015 regarding the compliance with Code of Conduct

To,

TheMembers

In accordancewith theRegulation34(4) andScheduleVofSEBI (ListingObligations andDisclosuresRequirements)Regulations2015, Iherebyconfirm that, allBoardMembersand theSeniorManagementpersonneloftheCompanyhaveaffirmedcomplianceswiththeRulesofCodeofConduct,asapplicabletothem,fortheFinancialYearendedonMarch31,2018.

OnBehalfoftheBoardofDirector For Frontline Securities Limited

Place: Noida Gauri Shanker PandeyDate: 28.05.2018 Whole Time Director

DIN: 00050614



FSLINDEPENDENT AUDITOR’S CERTIFICATE ON CORPORATE GOVERNANCE

To

TheMembersof

FrontlineSecuritiesLimited

1. Thiscertificateisissuedinaccordancewithtermsofourengagement,withFrontlineSecuritiesLimited(‘theCompany”).

2. WehaveexaminedthecomplianceofconditionsofCorporateGovernancebyFrontlineSecuritiesLimited(‘theCompany’),fortheyearended31stMarch2018,asstipulatedinRegulation17to27andclauses(b) to(i)of theRegulation46(2)andparaCandDofScheduleVofSEBI(ListingObligationsandDisclosuresRequirements)Regulations,2015(‘ListingRegulations’)asamendedfromtimetotime(the“ListingRegulations”).

Management’s responsibility

3. ThecomplianceofconditionsofCorporateGovernanceistheresponsibilityoftheManagement.Ourexaminationwaslimitedtoproceduresandimplementationthereof,adoptedbytheCompanyforensuringthecomplianceoftheconditionsofCorporateGovernance.ItisneitheranauditnoranexpressionofopiniononthefinancialstatementsoftheCompany.

Auditor’s responsibility

4. OurResponsibilityislimitedtoexaminingtheproceduresandimplementationthereof,adoptedbytheCompanyforensuringcomplianceoftheconditionsofCorporateGovernance.Itisneitheranauditnotanexpressionofopiniononthefinancialstatementsofthecompany.

5. WehaveexaminedthebooksofaccountsandotherrelevantrecordsanddocumentsmaintainedbytheCompanyforthepurposesofprovidingreasonableassuranceonthecompliancewiththeconditionsofCorporateGovernanceasstipulatedinListingRegulations.

6. Wehave carriedout an examinationof the relevant recordsof theCompany in accordancewith the“guidanceNoteontheCertificationofCorporateGovernance”,issuedbytheInstituteoftheCharteredAccountantsofIndia(“theICAI”),thestandardsontheAuditingspecifiedunderSection143(10)oftheCompaniesAct,2013,insofarasapplicableforthepurposeofthiscertificateandasperthe“GuidanceNoteontheReportsorCertificatesforSpecialPurposes”,issuedbytheICAI,whichrequiresthatwecomplywiththeethicalrequirementsoftheCodeofEthicsissuedbytheICAI.

7. WehavecompliedwiththerelevantapplicablerequirementsofthestandardonqualityControl(SOC)I.“QualityControlforFirmsthatPerformauditsandreviewsofHistoricalFinancialInformationandOtherAssuranceandRelatedServicesengagements”,issuedbytheICAI.

Opinion

8. Inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous,wecertifythattheCompanyhascompliedwiththeconditionsofCorporateGovernanceasstipulatedintheabove-mentionedListingRegulations,duringtheyearended31stMarch,2018.

9. WefurtherstatethatsuchcomplianceisneitheranassuranceastothefutureviabilityoftheCompanynortheefficiencyoreffectivenesswithwhichtheManagementhasconductedtheaffairsoftheCompany.

For Walecha Inder & Associates Chartered Accountant

FRN: 014205N

Walecha Inder JeetPlace: Noida PartnerDate: 28.05.2018 M. No. 093694



FSLINDEPENDENT AUDITOR’S REPORT

ToTheMembersofFrontlineSecuritiesLimitedNewDelhi

Report on the Standalone Financial Statements

Wehave audited the accompanying standalonefinancial statements ofFrontlineSecuritiesLimited (“theCompany”),whichcomprisetheBalanceSheetasat31stMarch,2018,theStatementofProfitandLoss,theCashFlowStatementfortheyearthenended,andasummaryofthesignificantaccountingpoliciesandotherexplanatoryinformation.

Management’s Responsibility for the Standalone Financial Statements

TheCompany’sBoardofDirectorsisresponsibleforthemattersstatedinSection134(5)oftheCompaniesAct,2013(“theAct”)withrespecttothepreparationofthesestandalonestatementsthatgiveatrueandfairviewofthefinancialposition,financialperformanceandcashflowsoftheCompanyinaccordancewiththeaccountingprinciplesgenerallyacceptedinIndia,includingtheAccountingStandardsspecifiedunderSection133oftheAct,readwithRule7oftheCompanies(Accounts)Rules,2014.ThisresponsibilityalsoincludesmaintenanceofadequateaccountingrecordsinaccordancewiththeprovisionsoftheActforsafeguardingoftheassetsoftheCompanyandforpreventinganddetectingfraudsandotherirregularities;selectionandapplication of appropriate accounting policies;making judgments and estimates that are reasonable andprudent; and design, implementation andmaintenance of adequate internal financial controls, thatwereoperatingeffectivelyforensuringtheaccuracyandcompletenessoftheaccountingrecords,relevanttothepreparationandpresentationofthefinancialstatementsthatgiveatrueandfairviewandarefreefrommaterialmisstatement,whetherduetofraudorerror.

Auditor’s Responsibility

Ourresponsibilityistoexpressanopiniononthesestandalonefinancialstatementsbasedonouraudit.

WehavetakenintoaccounttheprovisionsoftheAct,theaccountingandauditingstandardsandmatterswhicharerequiredtobeincludedintheauditreportundertheprovisionsoftheActandtheRulesmadethereunder.

WeconductedourauditinaccordancewiththeStandardsonAuditingspecifiedunderSection143(10)oftheAct.ThoseStandardsrequirethatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassuranceaboutwhetherthefinancialstatementsarefreefrommaterialmisstatement.

Anauditinvolvesperformingprocedurestoobtainauditevidenceabouttheamountsandthedisclosuresinthefinancialstatements.Theproceduresselecteddependontheauditor’sjudgment,includingtheassessmentoftherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror.Inmakingthoseriskassessments,theauditorconsidersinternalfinancialcontrolrelevanttotheCompany’spreparationofthefinancialstatementsthatgiveatrueandfairviewinordertodesignauditproceduresthatareappropriateinthecircumstancesbutnotforthepurposeofexpressinganopiniononwhetherthecompanyhasanadequateinternalfinancial controls systemover thefinancial reporting in place and the operating effectiveness ofsuchcontrols.AnauditalsoincludesevaluatingtheappropriatenessoftheaccountingpoliciesusedandthereasonablenessoftheaccountingestimatesmadebytheCompany’sDirectors,aswellasevaluatingtheoverallpresentationofthefinancialstatements.

Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopiniononthestandalonefinancialstatements.

Opinion

Inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous,theaforesaidstandalonefinancialstatementsgivetheinformationrequiredbytheActinthemannersorequiredandgivea



FSLtrueandfairviewinconformitywiththeaccountingprinciplesgenerallyacceptedinIndia,

a) InthecaseoftheBalanceSheet,ofthestateofaffairsoftheCompanyasatMarch31,2018;and

b) InthecaseoftheStatementofProfitandLoss,oftheProfitofthecompanyfortheyearendedonthatdate.

c) InthecaseoftheCashFlowStatement,thecashflowofthecompanyfortheyearendedMarch31,2018

Report on Other Legal and Regulatory Requirements

1. As required by theCompanies (Auditor’sReport)Order, 2016 (“theOrder”) issued by theCentralGovernmentofIndiaintermsofsubsection11ofsection143oftheAct,wegiveintheAnnexureA,astatementonthemattersspecifiedintheparagraph3&4oftheOrder,totheextentapplicable.

2. AsrequiredbySection143(3)oftheAct,wereportthat:

(a) Wehavesoughtandobtainedalltheinformationandexplanationswhichtothebestofourknowledgeandbeliefwerenecessaryforthepurposesofouraudit.

(b) Inouropinion,properbooksofaccountasrequiredbylawhavebeenkeptbytheCompanysofarasitappearsfromourexaminationofthosebooks.

(c) Thecompanydoesnothaveanyotherbranchwhereseparateaccountingrecordismaintained.

(d) TheBalanceSheet,theStatementofProfitandLoss,andtheCashFlowStatementdealtwithbythisReportareinagreementwiththebooksofaccounts.

(e) Inouropinion,theaforesaidstandalonefinancialstatementscomplywiththeAccountingStandardsspecifiedunderSection133oftheAct,readwithRule7oftheCompanies(Accounts)Rules,2014.

(f) Onthebasisofthewrittenrepresentationsreceivedfromthedirectorsason31stMarch,2018takenonrecordbytheBoardofDirectors,noneofthedirectorsisdisqualifiedason31stMarch,2018frombeingappointedasadirectorintermsofSection164(2)oftheAct.

(g)WithrespecttotheadequacyoftheinternalfinancialcontrolsoverfinancialreportingoftheCompanyandtheoperatingeffectivenessofsuchcontrols,refertoourseparatereportin“AnnexureB”;and

(h)WithrespecttotheothermatterstobeincludedintheAuditor’sReportinaccordancewithRule11oftheCompanies(AuditandAuditors)Rules,2014,inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous:

a) Thecompanydoesnothaveanypendinglitigationwhichwouldimpactitsfinancialpositions.

b) Thecompanydidnothaveanylong-termcontractsincludingderivativescontractsforwhichtherewereanymaterialforeseeablelosses.

c) TherewasnoamountrequiredtobetransferredtotheInvestorEducationandProtectionFundbytheCompany.

For M/s Walecha Inder & AssociatesChartered Accountants

Registration No. 014205N

(Walecha Inder Jeet)Partner

Membership No. 093694Place: NoidaDate: 28.05.2018



FSLAnnexure - A to the Auditors’ Report

TheAnnexurereferredtoinourIndependentAuditors’ReporttothemembersoftheCompanyonthestandalonefinancialstatementsfortheyearended31March2018,wereportthat:(i) (a) TheCompanyhasmaintainedproperrecordsshowingfullparticulars, includingquantitative

detailsandsituationoffixedassets. (b) TheCompanyhasaregularprogramofphysicalverificationofitsfixedassetsatregularintervals

andnomaterialdiscrepancieswerenoticedonsuchverification.Inouropinion,thisperiodicityofphysicalverificationisreasonablehavingregardtothesizeoftheCompanyandthenatureofitsassets.

(c) Accordingtotheinformationandexplanationsgiventousandonthebasisofourexaminationoftherecordsofthecompany,thetitledeedsofimmovablepropertiesareheldinthenameofcompany.

(ii) Thenatureofthecompanyissuchthatclause3(ii)oftheOrderisnotapplicable.(iii) Thecompanyhasnotgrantedanyloans,securedorunsecuredtocompanies,firmsorotherparties

coveredunderregistermaintainedunderSection189of theCompaniesAct,2013andtherefore,clause3(iii)oftheOrderisnotapplicable.

(iv) Inouropinion,andaccordingtoinformationandexplanationgiventous,companyhasnotgrantedanyloans,investment,guaranteesandsecuritytodirectororanyotherpersoninwhomdirectorisinterestedthereforeprovisionsofsection185and186oftheCompaniesAct,2013,isnotapplicabletothecompany.

(v) Accordingtotheinformationandexplanationsgiventous,thecompanyhasnotacceptedanydepositfromthepublicundertheprovisionsofsections73to76oranyotherrelevantprovisionsof theCompaniesAct,2013andtherulesframedthereunderandaccordinglytheclause3(v)oftheOrderisnotapplicable.

(vi) TheCentralGovernmenthasnotprescribedthemaintenanceofcostrecordsundersection148(1)oftheAct,foranyoftheservicesrenderedbytheCompany.

(vii) (a)Inouropinionandaccordingtotheinformationandexplanationsgiventous,andonthebasisofourexaminationoftherecordsoftheCompany,theprovisionsofCustomAct,ExciseDutyarenotapplicabletothecompanyduringtheyearandaccordinglynocommenthasbeenmadeinrespectofthesedues.FurtherthecompanyisregularindepositingotherundisputedstatutoryduesincludingIncomeTax,ServiceTax,Cessandanyotherstatutorydueswiththeappropriateauthority.TherearenoundisputedstatutoryduespayableinrespectofIncomeTax,ServiceTax,Cessandanyotherstatutorydueswhicharestandingasat31March2018foraperiodofmorethansixmonthsfromthedatetheybecamepayable.

(b) TherearenostatutoryduesofProvidentFund,EmployeeStateInsurance,InvestorEducation&ProtectionFund,IncomeTax,ServiceTax,Cessandanyotherstatutorydueswhichhavenotbeendepositedonaccountofanydispute.

(viii) Inouropinion,andaccordingtotheinformationandexplanationsgiventous,thecompanyisnotrequiredtorepayanyduestoafinancialinstitutionorbankordebentureholdersduringthecurrentfinancialyear.Accordingly,paragraph3(viii)oftheOrderisnotapplicable.

(ix) TheCompanydidnotraiseanymoneybywayofinitialpublicofferorfurtherpublicoffer(includingdebtinstruments)andtermloansduringtheyear.Accordingly,paragraph3(ix)oftheOrderisnotapplicable.

(x) Accordingtotheinformationandexplanationsgiventous,nomaterialfraudbytheCompanyorontheCompanybyitsofficersoremployeeshasbeennoticedorreportedduringthecourseofouraudit.

(xi) AccordingtotheinformationandexplanationsgivetousandbasedonourexaminationoftherecordsoftheCompany,theCompanyhaspaid/providedanymanagerialremunerationaspertheprovisionsofSec197ofCompaniesAct,2013readwithScheduleVoftheAct.



FSL(xii) Inouropinionandaccordingtotheinformationandexplanationsgiventous,theCompanyisnota

Nidhicompany.Accordingly,paragraph3(xii)oftheOrderisnotapplicable.(xiii) According to the informationandexplanationsgiven tousandbasedonourexaminationof the

recordsoftheCompany,transactionswiththerelatedpartiesareincompliancewithsections177and188oftheActwhereapplicableanddetailsofsuchtransactionshavebeendisclosedinthefinancialstatementsasrequiredbytheapplicableaccountingstandards

(xiv) AccordingtotheinformationandexplanationsgivetousandbasedonourexaminationoftherecordsoftheCompany,theCompanyhasnotmadeanypreferentialallotmentorprivateplacementofsharesorfullyorpartlyconvertibledebenturesduringtheyear.

(xv) According to the informationandexplanationsgiven tousandbasedonourexaminationof therecordsoftheCompany,theCompanyhasnotenteredintonon-cashtransactionswithdirectorsorpersonsconnectedwithhim.Accordingly,paragraph3(xv)oftheOrderisnotapplicable.

(xvi) Companyisregisteredundersection45-IAoftheReserveBankofIndiaAct,1934videCertificateofRegistrationnumberB-14.00089dated26.02.1998

For M/s Walecha Inder & Associates

Chartered Accountants


(Walecha Inder Jeet)

Partner

Membership No. 093694

Place: Noida

Date: 28.05.2018



FSLAnnexure - B to the Auditors’ Report

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

WehaveauditedtheinternalfinancialcontrolsoverfinancialreportingofFrontlineSecuritiesLimited(“theCompany”)asof31March2018inconjunctionwithourauditofthestandalonefinancialstatementsoftheCompanyfortheyearendedonthatdate.

Management’s Responsibility for Internal Financial Controls

TheCompany’smanagementisresponsibleforestablishingandmaintaininginternalfinancialcontrolsbasedontheinternalcontroloverfinancialreportingcriteriaestablishedbytheCompanyconsideringtheessentialcomponentsof internal control stated in theGuidanceNoteonAuditof InternalFinancialControlsoverFinancialReportingissuedbytheInstituteofCharteredAccountantsofIndia(‘ICAI’).Theseresponsibilitiesincludethedesign,implementationandmaintenanceofadequateinternalfinancialcontrolsthatwereoperatingeffectivelyforensuringtheorderlyandefficientconductofitsbusiness,includingadherencetocompany’spolicies,thesafeguardingofitsassets,thepreventionanddetectionoffraudsanderrors,theaccuracyandcompletenessoftheaccountingrecords,andthetimelypreparationofreliablefinancialinformation,asrequiredundertheCompaniesAct,2013.

Auditors’ Responsibility

OurresponsibilityistoexpressanopinionontheCompany’sinternalfinancialcontrolsoverfinancialreportingbasedonouraudit.WeconductedourauditinaccordancewiththeGuidanceNoteonAuditofInternalFinancialControlsoverFinancialReporting(the“GuidanceNote”)andtheStandardsonAuditing, issuedbyICAIprescribedundersection143(10)oftheCompaniesAct,2013,totheextentapplicabletoanauditofinternalfinancialcontrols,bothapplicabletoanauditofInternalFinancialControlsand,bothissuedbytheInstituteofCharteredAccountantsof India.ThoseStandardsand theGuidanceNoterequire thatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassuranceaboutwhetheradequateinternalfinancialcontrolsoverfinancialreportingwasestablishedandmaintainedandifsuchcontrolsoperatedeffectivelyinallmaterialrespects.

Ourauditinvolvesperformingprocedurestoobtainauditevidenceabouttheadequacyoftheinternalfinancialcontrols systemoverfinancial reporting and their operating effectiveness.Our audit of internalfinancialcontrols overfinancial reporting includedobtaining an understandingof internalfinancial controls overfinancialreporting,assessingtheriskthatamaterialweaknessexists,andtestingandevaluatingthedesignandoperatingeffectivenessofinternalcontrolbasedontheassessedrisk.Theproceduresselecteddependontheauditor’sjudgment,includingtheassessmentoftherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror.

WebelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinionontheCompany’sinternalfinancialcontrolssystemoverfinancialreporting.

Meaning of Internal Financial Controls over Financial Reporting

Acompany’sinternalfinancialcontroloverfinancialreportingisaprocessdesignedtoprovidereasonableassuranceregardingthereliabilityoffinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordancewithgenerallyacceptedaccountingprinciples.Acompany’sinternalfinancialcontroloverfinancialreportingincludesthosepoliciesandproceduresthat(1)pertaintothemaintenanceofrecordsthat,inreasonabledetail,accuratelyandfairlyreflectthetransactionsanddispositionsoftheassetsofthecompany;(2)providereasonableassurancethattransactionsarerecordedasnecessarytopermitpreparationoffinancialstatementsinaccordancewithgenerallyacceptedaccountingprinciples,andthatreceiptsandexpendituresof thecompanyarebeingmadeonly inaccordancewithauthorizationsofmanagementanddirectorsofthecompany;and(3)providereasonableassuranceregardingpreventionortimelydetectionof



FSLunauthorisedacquisition,use,ordispositionofthecompany’sassetsthatcouldhaveamaterialeffectonthefinancialstatements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Becauseoftheinherentlimitationsofinternalfinancialcontrolsoverfinancialreporting,includingthepossibilityofcollusionorimpropermanagementoverrideofcontrols,materialmisstatementsduetoerrororfraudmayoccurandnotbedetected.Also,projectionsofanyevaluationoftheinternalfinancialcontrolsoverfinancialreportingtofutureperiodsaresubjecttotheriskthattheinternalfinancialcontroloverfinancialreportingmaybecomeinadequatebecauseofchangesinconditions,orthatthedegreeofcompliancewiththepoliciesorproceduresmaydeteriorate.

Opinion

Inouropinion,theCompanyhas,inallmaterialrespects,anadequateinternalfinancialcontrolssystemoverfinancialreportingandsuchinternalfinancialcontrolsoverfinancialreportingwereoperatingeffectivelyasat31March2018,basedontheinternalcontroloverfinancialreportingcriteriaestablishedbytheCompanyconsideringtheessentialcomponentsofinternalcontrolstatedintheGuidanceNoteonAuditofInternalFinancialControlsOverFinancialReportingissuedbytheInstituteofCharteredAccountantsofIndia.

For M/s Walecha Inder & Associates

Chartered Accountants


(Walecha Inder Jeet)

Partner

Membership No. 093694

Place: Noida

Date: 28.05.2018



FSLBALANCE SHEET AS AT 31st March 2018

(Amount in Rs.)

PARTICULAR Note No As at 31.03.2018 As a 31.03.2017

I. EQUITY AND LIABILITIES

(1) Shareholder’s Funds (a) ShareCapital 2.1 5,92,78,460 71,866,890(b) ReservesandSurplus 2.2 395,337,651 364,744,883

(2) Non-Current Liabilities (a) Long-termborrowings 2.3 7,891,316 11,151,252(b) Otherlongtermliabilities 2.4 918,875 1,335,420(c) Longtermprovisions 2.5 32,642 17,673

(3) Current Liabilities (a) Short-termborrowings 2.6 3,259,940 2,874,158(b) Tradepayables 2.7 1,741,392 1,032,391(c) Othercurrentliabilities 2.8 3,582,042 1,653,685(d) Short-termprovisions 2.9 3,575,603 4,346,711

Total 475,617,921 459,023,063

II. ASSETS (1) Non-current assets (a)Property,Plants&Equipment 2.10 (i)TangibleAssets 129,286,557 55,400,548(ii)IntangibleAssets 91,100 154,123(iii)CapitalWorkInProgress - 41,289,073(b)Non-currentinvestments 2.11 291,309,357 327,842,215(c)DeferredtaxAssets(Net) 2.26 1,518,497 1,477,502(d)LongTermLoansandAdvances 2.12 14,928,945 8,175,172

(2) Current assets (a)TradeReceivables 2.13 7,086,869 -(b)Cashandbankbalances 2.14 14,672,283 14,503,044(c)Short-termloansandadvances 2.15 15,095,531 8,895,750(d)OtherCurrentAssets 2.16 1,628,782 1,285,636

Total 475,617,921 459,023,063

SignificantAccountingPolicy&NotestoAccounts 1&2

FOR AND ON BEHALF OF THE BOARD “AS PER OUR REPORT ATTACHED OF EVEN DATE” For M/s WALECHA INDER & ASSOCIATES Chartered Accountants Firm’s Registration Number : 014205N (RAKESH K. JAIN) (GAURI SHANKER PANDEY) Director Whole Time Director DIN : 00050524 DIN : 00050614 (Walecha Inder Jeet) Partner M.No: 093694(CS RICHA ARORA) (CA MAYANK AGARWAL) Company secretary Chief Financial Officer Place : NoidaM.No. : 42906 M.No. : 544992 Date : 28/05/2018



FSLSTATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED MARCH 31, 2018

(Amount in Rs.)

Particulars Note No For the Year Ended For the Year Ended 31.03.2018 31.03.2017”I.Revenue: a)Revenuefromoperations 2.17 35,109,922 8,064,192b)OtherIncome 2.18 94,497,352 47,936,790Total Revenue 129,607,274 56,000,982

II. Expenses: a).Employeebenefitexpense 2.19 4,498,000 3,052,442b).Financecosts 2.20 1,133,784 1,433c).Administrative&OtherExpenses 2.21 5,690,074 3,440,034d).DepreciationandAmortizationexpense 2.10 2,092,723 341,650Total Expenses 13,414,581 6,835,559 III. Profit before tax (I - II) 116,192,693 49,165,423IV. Tax expense (1)Currenttax 23,102,965 8,892,395 (2)MatCredit (6,509,858) (4,684,818) 16,593,107 4,207,577(3)Deferredtax (40,995) (39,017) V. Profit/(Loss) for the period 99,640,581 44,996,863

VI. Earning per equity share: Basic 14.13 6.26 Diluted 14.13 6.26Weightedaveragenumberofequityshares 7,052,182 7,186,689Facevalueperequityshare(Rs.) 10.00 10.00 SignificantAccountingPolicy&NotestoAccounts1&2 FOR AND ON BEHALF OF THE BOARD

“AS PER OUR REPORT ATTACHED OF EVEN DATE”

For M/s WALECHA INDER & ASSOCIATES Chartered Accountants Firm’s Registration Number : 014205N (RAKESH K. JAIN) (GAURI SHANKER PANDEY) Director Whole Time Director DIN : 00050524 DIN : 00050614 (Walecha Inder Jeet) Partner M.No: 093694 (CS RICHA ARORA) (CA MAYANK AGARWAL) Company Secretary Chief Financial Officer Place : NoidaM.No. :-42906 M.No. :-544992 Date : 28/05/2018



FSLCASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2018

Amount in Rs.Particulars For the year ended For the year ended 31.03.2018 31.03.2017A.Cash Flow from Operating Activities NetProfitBeforeTaxation 116,192,693 49,165,423Adjustments for Profit & Loss Account Depreciation 2,092,723 341,650 DividendIncome (8,023,312) (5,625,573) ProfitonSaleofInvestements(Net) (86,065,165) (41,961,114) RentalIncome (116,600) (349,800)Sundrybalanceswrittenoff - (5,919) Loss/(Gain)onSaleofFixedAssets - (92,112,354) 208,134 (47,392,622)Operating Profit before working capital 24,080,339 - 1,772,801Changes Adjustments for Working Capital Increase/(Decrease)inTradePayables 709,001 297,959 Increase/(Decrease)inShortTermBorrowings 385,782 - Increase/(Decrease)inOthercurrentliabilites 1,922,941 (373,631)Increase/(Decrease)inShorttermprovisions 1,129 (128,095)(Increase)/DecreaseinTradeReceivables (7,086,869) - (Increase)/DecreaseinShorttermloans (6,199,781) 33,836,335 &advances(Increase)/DecreaseinOthercurrentassets 547,928 1,665,234 Cash Generated from Operations (9,719,869) 35,297,802AdvanceTax/TDSPaid (23,994,042) (8,892,395)Net Cash From Operating Activities (9,633,572) 28,178,209B.Cash Flow from Investing Activites (Purchase)/SaleofFixedAssets[Net] (34,626,634) (30,543,377) (Purchase)/SaleofofInvestments[Net] 36,532,859 (3,068,073) ProfitonSaleofInvestment(Net) 86,065,165 - LongTermLoansandAdvances (243,914) 7,069,019 LongtermBorrowings (3,259,936) (3,174,039) RentalIncome 116,600 349,800 Increase/(Decrease)inOtherlongterm (416,545) 407,320 liabilitiesDividendIncome 8,023,312 5,625,573 Net Cash Used in Investing Activities 92,190,907 (23,333,777)C.CashFlowfromFinancingActivites Dividendspaid(includingunclaimed) (3,593,345) (3,593,345) DividendDistributionTax (751,901) (751,901)BuyBackofEquityShareCapital (78,048,266) - Net Cash Used in Financing Activities (82,393,512) (4,345,246)Net Increase/(Decrease)(In cash and cash equivalents) 163,823 499,185CashandcashEquivalentsatthebeginningoftheYear 801,612 302,427Cash and cash Equivalents at the end of the Year 965,435 801,612EarmarkedBalancewithBank 1,206,848 1,201,432ShortTermBankDeposits 12,500,000 12,500,000Cash and Bank Balances at the end of year 14,672,283 14,503,044



FSL

FOR AND ON BEHALF OF THE BOARD “AS PER OUR REPORT ATTACHED OF EVEN DATE” For M/s WALECHA INDER & ASSOCIATES Chartered Accountants Firm’s Registration Number : 014205N (RAKESH K. JAIN) (GAURI SHANKER PANDEY) (Walecha Inder Jeet)Director Whole Time Director PartnerDIN : 00050524 DIN : 00050614 M.No: 093694 (CS RICHA ARORA) (CA MAYANK AGARWAL) Place : NoidaCompany Secretary Chief Financial Officer Date : 28/05/2018M.No. :-42906 M.No.-544992



FSLNOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2018

1. ACCOUNTING POLICIES

a. Brief history and method of Accounting

ThecompanyisalistedpubliccompanyinBSE,registeredundertheCompaniesAct,1956.ThecompanyisregisteredasaNon–DeposittakingNon-SystematicallyImportantNon-BankingFinancialCompany(NBFC).

ThefinancialstatementshavebeenpreparedandpresentedunderthehistoricalcostconventiononaccrualbasisofaccountingandaccountingprinciplesgenerallyacceptedinIndiaandcomplywiththeAccountingStandardsnotifiedunderSection133oftheCompaniesAct,2013readtogetherwithparagraph7oftheCompanies(Accounts)Rules,2014totheextentapplicableandpracticesgenerallyprevalentinIndia.

b. Use of Estimates

Thepreparationofthefinancialstatementsinconformitywithgenerallyacceptedaccountingprinciples(‘GAAP’)inIndiarequiresmanagementtomakeestimatesandassumptionsthataffectthereportedamountofassetsandliabilitiesanddisclosureofcontingentliabilitiesonthedateofthefinancialstatements.Managementbelievesthattheestimatesmadeinthepreparationoffinancialstatementsareprudentandreasonable.Actual results coulddiffer from those estimates.Any revision to accountingestimates isrecognizedprospectivelyincurrentandfutureperiods.

c. Valuation of stock of securities

Stockofsecuritiesisvaluedatlowerofcostandmarketprice.However,thereisnostockonyearending.

d. Revenue Recognition

Gainorlossfrominvestmentinsecuritiesreflectsthenetgain/lossonredemptionandinvestmentsinsecurities.

Brokerage,interestandcommissionincomeisbeingrecordedonaccrualbasis.

Dividendincomeisbeingrecordedwhenthecompany’srighttoreceivethepaymentisestablished.

e. Expenses

Expensesareaccountedonaccrualbasisandprovisioningismadeforallknownliabilities.

f. Property, Plant and Equipment

(i) Property,Plantandequipment(PPE)arestatedatcostincludingexpensesincurreduptothedateoftheirinstallation/commissioningasreducedbyaccumulateddepreciation/impairmentprovidedintheaccounts.TheusefullifeofassetsistakenasprescribedinScheduleIItotheCompaniesAct,2013.ThecompanyhasadoptedStraightLineMethodforchargingDepreciation.

(ii)Capitalwork-in-progressisstatedatcost.

(iii)Softwareisclassifiedasintangibleassetsattheircostandamortizedoveraperiodof7Year.

g. Foreign currency Transactions

a) Initialrecognition:

Foreigncurrency transactions are recorded in the reportingcurrency,byapplying to the foreigncurrencyamounttheexchangeratebetweenthereportingcurrencyandtheforeigncurrencyatthedateofthetransaction.

b) Conversion:

Foreigncurrencymonetaryitemsareretranslatedusingtheexchangerateprevailingatthereportingdate.Non-monetaryitems,whicharemeasuredintermsofhistoricalcostdenominatedinaforeign



FSLcurrency,arereportedusingtheexchangerateatthedateofthetransaction.Non-monetaryitems,whicharemeasuredatfairvalueorothersimilarvaluationdenominatedinaforeigncurrency,aretranslatedusingtheexchangerateatthedatewhensuchvaluewasdetermined.

c) Exchangedifferences:

Exchangedifferencesarisingonthesettlementofmonetaryitemsarerecognizedasincomeorexpensesintheyearinwhichtheyarise.

Exchangedifferencesarisingonamonetaryitemthat,insubstance,formspartofthecompany’snetinvestmentinanon-integralforeignoperationisaccumulatedinaforeigncurrencytranslationreserveinthefinancialstatementsuntilthedisposalofthenet-investment,atwhichtimetheyarerecognizedasincomeorasexpenses.

However,therearenoforeigncurrencytransactionsintheyear.

h. Government Grants

Governmentgrantsarerecognizedwhenthereisreasonableassurancethatthecompanywillcomplywiththeconditionsattachedtothemandgrantswillbereceived.

Governmentgrantswhoseprimaryconditionisthatthecompanyshouldpurchase,constructorotherwiseacquirecapitalassetsarepresentedbydeductingthemfromthecarryingvalueoftheassets.Thegrantisrecognizedasincomeoverthelifeofadepreciableassetbywayofareduceddepreciationcharge.

Othergovernmentgrantsarerecognizedasincomeovertheperiodsnecessarytomatchthemwiththecostsforwhichtheyareintendedtocompensate,onasystematicandrationalbasis.

i. Valuation of the Investments

AsperAccountingStandard13(AS-13revised),investmentsareclassifiedas‘CurrentInvestments’&‘LongtermInvestments’dependingupontheintentiontoholdthesameatthetimeofmakinginvestments.Thelongterminvestmentsarevaluedatcost.However,ifthereisanydeclineinthevalueofinvestment,otherthantemporary,thecarryingamountofinvestmentisreducedforrecognizingthedeclineinvalueforeachinvestment.

j. Employee Benefits

GratuityBenefitsarerecognizedasanexpenseintheprofit&lossaccountfortheyearinwhichtheemployeehasrenderedservices.Theexpensesarerecognizedatthepresentvalueoftheamountspayabledeterminedusingactuarialvaluation techniques.Actuarialgainsand losses in respectofgratuityarechargedtoprofitandlossaccount.

k. Borrowing Cost

Borrowingcostincludesinterest.Suchcostsdirectlyattributabletotheacquisition,constructionorproductionofanassetthatnecessarilytakesasubstantialperiodoftimetogetreadyforitsintendeduseorsalearecapitalizedaspartofthecostoftherespectiveasset.Allotherborrowingcostsareexpensedintheperiodtheyoccur.

l. Segment Reporting

Thecompanyoperatesinonegeographicalsegment,i.e.Indiaandhasidentifiedtwobusinesssegmentsi.e.Segment-IwhichisConsultancyCommission&BrokerageandSegment-IIInvestmentsinBonds,FixedDeposits&Loans&Advances.SegmentProfit&LossismeasuredonthebasisofOperatingProfitorLossofeachrespectivesegment.SegmentAssetsandLiabilitieshavebeenapportionedsimilarly.

m. Leases

Where theCompany, as a lessor, leases assets underfinance lease, such amounts are recognised asreceivablesatanamountequaltothenetinvestmentintheleaseandthefinanceincomeisbasedonaconstantrateofreturnontheoutstandingnetinvestment.



FSL Assetstakenonleasebythecompanyinitscapacityaslessee,wherethecompanyhassubstantiallyalltherisksandrewardsofownershipareclassifiedasfinancelease.Suchaleaseiscapitalisedattheinceptionoftheleaseatlowerofthefairvalueorthepresentvalueoftheminimumleasepaymentsandaliabilityisrecognisedforanequivalentamount.Eachleaserentalpaidisallocatedbetweentheliabilityandtheinterestcostsoastoobtainaconstantperiodicrateofinterestontheoutstandingliabilityforeachyear.

Leasearrangementswheretherisksandrewardsincidentaltoownershipofanassetsubstantiallyvestswiththelessor,arerecognisedasoperatinglease.Leaserentalsunderoperatingleasearerecognisedinthestatementofprofitandlossonastraight-linebasis.

n. Earning Per Share

BasicearningsperequitysharearebeingcomputedbydividingnetprofitaftertaxbytheweightedaveragenumberofsharesoutstandingduringtheyearasprescribedinAccountingStandard20prescribedintheCompanies(AccountingStandard)Rules,2016issuedbytheCentralGovernmentinconsultationwiththeNationalAdvisoryCommitteeonAccountingStandard.

o. Taxes on Income

Taxexpensescomprisecurrentanddeferredtaxes.CurrentincometaxismeasuredattheamountexpectedtobepaidtothetaxauthoritiesinaccordancewiththeIncomeTaxAct,1961.DeferredIncomeTaxreflectstheimpactofcurrentyeartimingdifferencebetweenthetaxableincomeandtheaccountingincomefortheyearandreversaloftimingdifferenceofearlieryears.

Deferred tax ismeasuredbasedon the taxratesand tax lawsenactedorsubstantivelyenactedat thebalancesheetdate.Deferredtaxassetsanddeferredtaxliabilitiesareoffset,ifalegallyenforceablerightexiststosetoffcurrenttaxassetsagainstcurrenttaxliabilitiesandthedeferredtaxassetsanddeferredtaxliabilitiesrelatetotaxesleviedbythesamegoverningtaxationlaws.Deferredtaxassetsarerecognizedonlytotheextentthatthereisreasonablecertaintythatsufficientfuturetaxableincomewillbeavailableagainstwhichsuchdeferredtaxassetscanberealised.Insituationwherethecompanyhasunabsorbeddepreciationorcarryforwardtaxlosses,alldeferredtaxassetsarerecognizedonlyif thereisvirtualcertaintysupportedbyconvincingevidencethattheycanberealisedagainstfuturetaxableprofits.

AteachBalancesheetdate,thecompanyre-assessesunrecognizeddeferredtaxassetsandrecognizesdeferredtaxassettotheextentthatithasbecomereasonablycertainorvirtuallycertain,asthecasemaybe,thatsufficientfuturetaxableincomewillbeavailableagainstwhichsuchdeferredtaxassetscanberealised.

p. Intangible assets

Cost incurredon intangibleassets, resulting in futureeconomicbenefitsarecapitalizedas intangibleassetsandamortizedonastraight-linemethodbeginningfromthedateofcapitalizationoveraperiodof7years.

q. Impairment of Fixed Asset

Managementperiodicallyassessesusingexternalandinternalsourceswhetherthereisanindicationthatfixedassetsofthecompanyhavesufferedanimpairmentloss.Impairmentloss,ifany,isprovidedasperAccountingStandard(AS-28)onImpairmentofAssets.

r. Provisions, Contingent Liabilities and Contingent Assets

AsperAccountingStandard29 (AS-29Revised), a provision is recognizedwhen there is a presentobligationasaresultofamountofapasteventthatprobablyrequiresanoutflowofresourcesandareliableestimatecanbemadeoftheamountoftheobligation.Disclosureforcontingentliabilityismadewhenthereisapossibleobligationorapresentobligationthatmay,butprobablywillnot,requireanoutflowofresources.

Noprovisionisrecognizedordisclosureforcontingentliabilityismadeasthereisnopossibleobligationorapresentobligationandthelikelihoodofoutflowofresourcesisremote.ContingentAssetsisneitherrecognizednordisclosedinthefinancialstatements.



FSL2. NOTES TO ACCOUNTS FOR THE YEAR ENDED MARCH 31, 2018 Thepreviousyearfigureshavebeenregrouped/reclassified,wherevernecessarytoconfirmtothecurrentperiodpresentation. 2.1. SHARE CAPITAL (AmountinRs.)Particulars As at 31.03.2018 As at 31.03.2017 Nos. Amount Nos. AmountAUTHORISED EquitySharesofRs.10/-each 1,00,00,000 100,000,000 1,00,00,000 100,000,000 ISSUED, SUBSCRIBED & PAID-UP EquitysharesofRs.10/- 5,927,846 59,278,460 7,186,689 71,866,890eachfullypaidup

Total 5,927,846 59,278,460 7,186,689 71,866,890 Intheeventofliquidationofthecompany,theEquityshareholderswillbeentitledtoreceiveanyofremainingassetsofthecompany,afterdistributionofallpreferentialamounts.However,nosuchpreferentialamountsexistcurrently.Thedistributionwillbeinproportiontothenumberofequitysharesheldbytheshareholders. ThereconciliationofthenumberofsharesoutstandingandtheamountofsharecapitalasatMarch31,2018andMarch31,2017issetoutbelow- (Amount in Rs.)Particulars As at 31.03.2018 As at 31.03.2017 Nos. Amount Nos. Amount No.ofshareatthebeginning 7,186,689 71,866,890 7,186,689 71,866,890Add-Sharesissuedduringtheyear - - - -Less-Sharesbuybackduringtheyear 1,258,843 12,588,430 - -

No. of share at the end 5,927,846 59,278,460 7,186,689 71,866,890 Detailsofsharesheldbyshareholdersholdingmorethan5%oftheaggregatesharesinthecompany Particulars As at 31.03.2018 As at 31.03.2017 Nos. % Nos. %

MrRakeshKJain 2,495,910 42.10 2,995,910 41.69Ms.PrernaJain 1,388,504 23.42 1,763,504 24.54HopeConsultantsLimited 410,043 6.92 410,043 5.71

Total 4,294,457 72.46 5,169,457 71.94 Proposed Dividend

Particulars As at 31.03.2018 As at 31.03.2017

DividendperShareonsharesofRs.10each 0.50 0.50DividendProposed% 5 5 ThecompanyhasonlyoneclassofsharesreferredtoasequityshareshavingaparvalueofRs.10/-,eachholderofequitysharesisentitledtoonevotepershare.ThedividendproposedbytheBoardofDirectorsissubjecttotheapprovaloftheshareholdersintheensuingAnnualGeneralMeeting.

Buy-back of Equity Shares

a.)TheCompanyhadbroughtBackof12,58,843/-fullypaidEquityShareshavingfaceValueofRs.10/-each



FSLfromitsEquityshareholdersonaproportionatebasisthrough“TenderOffer”routeinFinancialyear2017-18atapriceofRs.62/-perequityshares.ThecompanyhasutilisedasumofRs.2,37,54,125/-fromitsSecurityPremiumAccount,totheextentavailableandRs.5,42,94,141/-fromProfit&LossAccounttopayasumofRs.7,80,48,266/-toitsshareholders.

b.) TheCompanyhadbroughtBackof23,75,000/-fullypaidEquityShareshavingfaceValueofRs.10/-eachfromitsEquityshareholdersonaproportionatebasisthrough“TenderOffer”routeinFinancialyear2013-14atapriceofRs.32.50/-perequityshares.

2.2 RESERVES AND SURPLUS (Amount in Rs.) As at 31.03.2018 As at 31.03.2017A) General Reserves OpeningBalance 5,047,852 5,047,852(+)Currentyeartransfer - -Closing Balance 5,047,852 5,047,852 B) Security Premium Account OpeningBalance 23,754,125 23,754,125(+)Currentyeartransfer - -(-)Deductionforcurrentyear (23,754,125) -Closing Balance - 23,754,125 C) RBI Reserve Fund OpeningBalance 96,391,529 87,392,156(+)Currentyeartransfer 19,928,116 8,999,373Closing Balance 116,319,645 96,391,529 D) Capital Redemption Reserve OpeningBalance 23,182,610 23,182,610(+)Currentyeartransfer 12,588,430 -Closing Balance 35,771,040 23,182,610 E) Surplus OpeningBalance 216,368,768 184,595,514(+)NetProfit/(NetLoss)forthecurrentyear 99,640,581 44,996,863(-)BuyBackofShares# (54,294,141) -(-)ProposedDividend (2,963,923) (3,593,345)(-)ProposedDividendTax (609,086) (751,901)(-)TransfertoRBIReserves (19,928,116) (8,999,373)(+/-)ContingencyProvisionagainstStandardAssets (14,969) 126,928(-)Shortprovisionmadeinthepreviousyear - (5,919)Closing Balance 238,199,114 216,368,768Grand Total 395,337,651 364,744,883 TheBoardofDirectorsatitsmeetingheldon28/05/2018hasrecommendedafinaldividendof5%(Rs.0.50perequityshareofRs.10/-each)fortheF.Y.2017-18subjecttotheapprovalofshareholders.

#TheamountincludesasumofRs.1,25,88,430/-transferedtoCapitalRedemptionReserveAccount(Nominalvalueofsharepurchased)incomplianceofSection69ofCompaniesAct,2013



FSL2.3 LONG TERM BORROWING

(Amount in Rs.)Particulars As at 31.03.2018 As at 31.03.2017PayabletoGreaterNoidaAuthorityforLand 7,891,316 11,151,252 7,891,316 11,151,252 2.4 OTHER LONG TERM LIABILITIES (Amount in Rs.)Particulars As at 31.03.2018 As at 31.03.2017SecurityDeposit - 159,000SecurityDepositfromContractor 918,875 1,176,420 918,875 1,335,420 2.5 LONG TERM PROVISIONS (Amount in Rs.)Particulars As at 31.03.2018 As at 31.03.2017Contingentprovisionagainststandardasset 32,642 7,673Total 32,642 17,673 2.6 SHORT TERM BORROWING (Amount in Rs.)Particulars As at 31.03.2018 As at 31.03.2017PayabletoGreaterNoidaAuthorityforLand 3,259,940 2,874,158 3,259,940 2,874,158 2.7 TRADE PAYABLE (Amount in Rs.)Particulars As at 31.03.2018 As at 31.03.2017SundryCreditors 1,353,184 13,336Commission&BrokeragePayable 388,208 1,019,055 1,741,392 1,032,391 2.8 OTHER CURRENT LIABILITIES (Amount in Rs.)Particulars As at 31.03.2018 As at 31.03.2017ExpensesPayable 486,599 259,356I.G.S.TPayable 1,787,830 -P.F.Payable 23,648 12,538LabourCessPayable - 41,309TDSpayable 77,117 45,626WCTpayable - 93,424UnclaimedDividend 1,206,848 1,201,432 3,582,042 1,653,685

ThereisnoamountdueforthepaymenttotheInvestorEducationandProtectionFundundersection124oftheCompaniesAct,2013asattheyearendinrespectofUnpaidDividend 2.9 SHORT TERM PROVISIONS (Amount in Rs.)Particulars As at 31.03.2018 As at 31.03.2017GratuityPayable 2,594 1,465ProposedDividend 2,963,923 3,593,345CorporateDividendtax 609,086 751,901 3,575,603 4,346,711



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FSL2.11 NON CURRENT INVESTMENTS

(Amount in As at 31.03.2018 As at 31.03.2017 ScripName Face Nos.of Value Nos.of Value Value Shares/Units Shares/Units (i) Unquoted Investments 1.SystmaShyamTeleservicesLtd.* 10 - - 154,830 1,228,102.JordEngineering(I)Ltd. 10 100 - 100 -3.Ballmerlaweriecont.ltd 10 200 210 200 210Total (A) 300 210 155,130 1,228,310(ii) Quoted (Non Trade Investments) 1.AdaniPortsandSEZLtd. 2 - - 25,000 7,256,9632.AdaniTransmissionLtd 10 - - 52,500 2,161,5243.AdityaBirlaCapitalLtd. 10 115,400 19,586,343 - -4.AmaraRajaBatteriesLtd. 1 500 352,873 1,500 1,294,2175.AndharaCementsLtd. 10 - - 599,934 4,535,1796.AshokLeylandLtd. 1 28,000 3,283,687 - -7.AtulLtd 10 - - 400 622,4738.BankOfBaroda 2 70,000 10,607,570 - -9.BSELtd. 2 100 98,357 - -10.BharatPetroleumCorporationLtd 10 - - 1,000 681,78411.CastrolIndiaLtd 5 - - 1,000 365,11612.CentralDepositoryServices 10 12,500 4,104,406 - -(India)Ltd13.ContainerCorporationLtd. 10 11,000 15,397,807 - -14.D-Link(India)Ltd 2 - - 45,000 5,969,95015.DeltaCorpLtd. 1 4,500 1,107,172 - -16.DevelopmentCreditBankLtd 10 - - 10,000 806,23217.DewanHousingFinanceCo.Ltd. 10 - - 20,000 6,128,91818.Divi’sLaboratoriesLtd 2 - - 2,000 1,492,66719.ESSLPropackLtd. 2 25,067 6,532,039 - -20.EquitasHoldingsLtd. 10 - - 18,900 3,147,31421.EsterIndustriesLtd. 5 32,500 2,070,183 - -22.FinolexIndustriesLtd. 10 6,200 3,848,461 - -23.ForceMotorsLtd. 10 750 2,384,881 - -24.TheFederalBankLtd. 2 - - 25,000 1,161,77725.GabrielIndiaLtd 1 - - 15,000 1,607,15726.GatewayDistriparksLtd 10 6,000 1,415,763 43,500 12,049,76427.GMRInfrastructureLtd 1 - - 150,000 1,844,93028.GodrejConsumerProductsLtd 1 - - 2,500 4,019,54229.GodrejAgrovetLtd. 10 2,500 1,464,112 - -30.HDFCBankLtd 2 3,000 4,891,289 3,250 3,362,75531.ICICIBankLtd. 2 - - 26,500 6,380,50732.IDFCLtd. 10 - - 65,000 3,114,43733.IDFCBankLtd. 10 203,500 11,899,654 21,500 1,077,86534.IndiabullsHousingFinanceLtd 2 - - 7,500 5,694,03135.JaiprakashPowerVenturesLtd 10 - - 500,000 2,916,442



FSL36.J.K.CementLtd. 10 - - 2,250 1,350,90437.JyothyLaboratoriesLtd. 1 21,500 7,647,778 - -38.UdaipurCementWorksLtd. 4 10,100 9,599 10,100 9,59539.JKLakshmiCementLtd. 5 - - 6,000 2,183,99540.KalpatruPowerLtd 2 - - 11,500 2,593,24441.KansaiNerolacTransmissionLtd 1 - - 28,250 10,191,09442.LaOpalaRgLtd 2 16,623 4,632,132 - -43.LarsenTurboLtd 2 6,500 7,393,738 1,500 2,250,59344.LumaxAutomotiveSystemsLtd 10 - - 50 -45.MarutiSuzukiIndiaLtd 5 - - 900 5,436,51946.MercatorLinesLtd 1 - - 15,000 418,76947.MideastIntegratedSteelsLtd. 10 15,000 762,981 - -48.MuthootFinanceLtd 10 22,500 9,466,468 - -49.Network18Media&Inv.Ltd. 5 - - 68,500 2,765,59650.NationalBuildingsConst.Corp.Ltd. 1 5,000 1,259,121 - -51.NIITTechnologiesLtd 10 - - 17,000 7,212,34852.ONGCLtd 5 30,000 5,051,125 - -53.OrientRefractoriesLtd. 1 2,500 399,261 - -54.PhoenixLampsLtd. 10 - - 5,000 472,80355.PinconSpiritLtd. 10 - - 60,000 4,030,70256.PowerGridCorporationOf 10 51,000 10,111,348 10,500 1,984,579IndiaLtd57.PolyplexCorporationLtd. 10 4,000 1,984,213 - -58.RelianceCapitalLtd. 10 60 - 60 -59.RelianceCommunicaionVenturesLtd5 13,463 1,228,100 - -60.RelianceHomeFinanceLtd. 10 60 - - -61.RelianceNipponLifeAsset 10 33,000 8,686,388 - -ManagementLtd.62.ReliancePowerLtd. 10 300 - 300 -63.ShippingCorporationofIndiaLtd. 10 - - 50,000 3,448,44164.ShreeCementLtd. 10 450 7,546,914 - -65.SteelAuthorityofIndiaLtd. 10 8,000 673,872 125,000 5,697,73566.SuprajitEngineeringLtd. 1 5,000 1,049,080 32,000 6,250,91667.SequentScientificLtd. 2 15,000 1,609,222 - -68TechMahindraLtd. 5 - - 10,000 5,289,19669.TriveniTurbineLtd 1 - - 37,000 4,418,53970.TubeInvestmentsofIndiaLtd. 1 20,900 5,211,219 - -71.TV18BroadcastLtd 2 - - 160,000 6,612,47072.TVSSrichakaraLtd. 10 100 322,715 1,140 2,740,99873.UltratechCementLtd. 10 650 2,709,079 500 1,578,68874.VIPIndustriesLtd 2 5,000 609,010 30,000 3,558,35475.WonderlaHolidaysLtd 10 11,250 4,347,274 11,500 4,450,74576.ZeeEntertainmentEnter.Ltd 1 14,000 7,245,494 - -TOTAL (B) 833,473 179,000,728 2,331,034 162,638,369



FSL(Amount in Rs.)

As At 31.03.2018 As At 31.03.2017 Scheme Name Nos. of Value Nos. of Value Shares/Units Shares/Units MUTUAL FUND LIQUID/DEBT-GROWTH 1.BirlaSunLifeCashManagerFund-Growth - - 30,404 11,604,4932.BirlaSunLifeFloatingRate-ShortTerm-Growth-DirectPlan 22,578 5,200,000 - -3.DSPBlackRockMoneyManagerFund-RegularPlan-Growth - - 5,335 11,238,8664.DSPBlackRockLiquidityFund-DirectPlan-Growth 201 496,242 - -5.FranklinIndiaSavingsPlusFund-RetailPlan-Growth - - 227,469 6,585,6096.FranklinUSOpportunitiesFund - - 258,894 4,270,2987.HDFCCashManagamentFund-SavingsPlan-Growth - - 1,590 4,990,3368.HDFCCashManagementFund-Treasury - - 293,372 9,600,000AdvantagePlan-Retail-Growth9.HDFCCMSavings-DirectPlan-GrowthOption 1,773 6,326,948 - -10.HDFCLiquidFund-DirectPlan-GrowthOption 2,348 7,920,023 - -11.ICICIPrudentialFlexibleIncome-RegularPlan-Growth - - 6,969 2,000,00012.ICICIPrudentialLiquidPlan-RegularPlan-Growth 4,885 1,029,660 9,764 1,942,99613.RelianceMoneymanagerFund-InstOption-GrowthPlan - 501 3,471 7,021,36514.RelianceLiquidFund-GrowthPlan - - 216 755,56415.RelianceLiquidityFund-DirectPlanGrowthOption-Growth 2,270 5,900,000 - -16.TempletonIndiaTreasuryManagementAccount-Direct-Growth 3,204 8,250,000 - -17.TempletonIndiaUltra-shortBondFund-Growth - - 332,846 7,350,00018.Uti-FloatingRateFund-ShortTermPlan(GrowthOption) 956 2,707,667 - -19.UTITreasuryAdvantageFundInstitutionalPlan-Growth 1,765 3,960,002 3,733 6,578,93220.Uti-FloatingRateFund-ShortTermPlan(GrowthOption) - - 4,193 10,782,981 MUTUAL FUND-Gilt 1.HDFCGiltfundLongTermGrowth - - 58,846 1,700,0002.ICICIPrudentialGiltFundInvestmentGrowth - - 83,761 4,100,0003.RelianceGiltSecuritiesFundInstitutionalPlanGrowth - - 368,866 6,750,0004.TempletonIndiaGovt.Sec.Fund-LongTermPlanGrowth - - 126,979 4,250,0005.UTIGiltAdvantageLongTermGrowth - - 254,328 7,900,000 MUTUAL FUND-EQUITY 1.BirlaSunLifeAdvantageFund-PlanA(Dividend) 36,633 3,873,575 - -2.BirlaSunLifeBankingandFinancialServicesFund 102,947 1,789,376 - --RegularPlan-Dividend3.BirlaSunlifeEquityFundPlan-Dividend - - 49,185 5,000,0894.BirlaSunLfeMNCFund - - 10,850 1,499,9805.BirlaSunLifePureValueFund-Dividend 86,420 2,674,707 121,005 3,000,0006.DSPBlackrockFocus25Fund-Dividend - - 221,140 2,700,0007.DSPBlackRockOpportunitiesFund-DirectPlan-Dividend 18,163 1,000,000 - -8.DSPBlackRockOpportunitiesFund-DirectPlan-Growth 4,552 1,000,000 - -9.DSPBlackrockOpportunitiesFund-Regular 129,521 3,635,017 36,934 1,000,00010.DSPBlackrockSmallandMidCapFundRegularPlan-Dividend - - 137,637 2,800,00011.DSPBlackRockTechnology.comFund-RegularPlan-Dividend - - 34,458 1,000,00012.FranklinIndiaHighGrowthCompaniesFund 106,155 2,502,054 187,055 4,500,01713.FranklinIndiaPrimaPlus-Dividend 10,834 399,159 141,514 4,850,00014.FranklinIndiaSmallerCompaniesFund-Dividend 1 9 83,428 2,000,00015.FranklinIndiaBluechipFund-Dividend - - 55,381 2,000,00016.HDFCMid-CapOpportunitiesFund-Dividend 112,671 3,558,968 32,754 1,000,00017.HDFCCapitalBuilderFund-DirectPlan-DividendOption 178,114 6,058,116 - -18.HDFCCapitalBuilderFund-DirectPlan-GrowthOption 4,812 1,500,000 - -



FSL19.HSBCIndiaOpportunitiesFund-Dividend 137,249 3,484,183 - -20.HSBCMidcapEquityFund-Dividend 205,401 4,500,000 47,786 1,000,00021.ICICIPrudentialBankingandfinancialServicesfund-RetailFund - - 26,110 700,00022.ICICIPrudentialValueDiscoveryFund-Dividend - - 97,731 2,850,00023.KotakOpportunities-Dividend 20,022 547,654 - -24.KotakSelectFocusFund-Dividend 138,730 3,194,924 - -25.KotakSelectFocusFund-Dividend-Direct 157,064 3,950,000 - -26.KotakSelectFocusFund-Growth-Direct 29,191 1,000,000 - -27.MOStFocused25Fund-RegularPlanDividend 266,301 4,528,180 69,306 1,000,00028.MOStFocusedMulticap35-DirectPlan-DividendOption 194,284 5,317,371 - -29.MOStFocusedMulticap35-DirectPlan-GrowthOption 96,854 2,600,000 - -30..RelianceBankingFund-Dividend - - 66,052 2,500,00031.RelianceEquityOpportunitiesFund-Dividend - - 16,096 500,00032.UTIBankingSectorFund-IncomeOption - - 19,353 500,00033.UTIMidCapFund-IncomePlan 13,730 750,033 40,146 1,500,000 Total (C) 2,089,629 99,654,369 3,534,552 151,321,487 Bonds 01.01006GOI2021 50,000 5,910,720 50,000 5,910,72002.6.9%GOI2019(CentralGovt.Loan09009) 5,000 498,529 5,000 498,52903.Centralgovt.Loan07003GOI 62,000 6,244,801 62,000 6,244,80104.NationalThermalPowerCorporation-NCD 23,500 - 23,500 -Total (D) 140,500 12,654,050 140,500 12,654,050 Total(A+B+C+D) 291,309,357 327,842,215 Investmentofshareshasbeentakenaslongterminvestmentsastheintentionofmanagementatthetimeofpurchaseistoholdthemaslongterm.Howeveritmayhappen,inbenefitofcompanysomeinvestmentsmaybesoldinshortterm.Buttheintentionofmanagementwastoholdtheinvestmentaslongtermingeneral,hencethesamehasbeentakenaslongterminvestments. Notes: a.AggregatecostofunquotedinvestmentisRs.210/--(PreviousyearRs12,28,310/-) b.AggregatecostofquotedinvestmentisRs.179,000,728/-(PreviousyearRs162,638,369/-) c.AggregatecostofmutualfundisRs.99,654,369/-(PreviousyearRs.151,321,487/-) d.MarketvalueofquotedInvestmentisRs.172,086,840/-(PreviousyearRs.186,034,542/-) e.MarketvalueofMutualFundisRs.98,281,116/-(PreviousYearRs.166,824,833/-) f.Noprovisionhasbeenmadeforreductionifanyinmarketvalueasthesameistemporaryinnature. g.*Thecompanyhasbeenalloted13,463NosofequityshareofRelianceCommunicationLimitedunderschemeofarrangementbetweenRelianceCommunicationLtd&SystmaShyamTeleservicesLtd.



FSL2.12 LONG TERM LOANS AND ADVANCES (Amount in Rs.)Particulars As at 31.03.2018 As at 31.03.2017 Unsecured&consideredgood:- -MATCredit 14,685,030 8,175,172-GratuityTrust 243,915 - 14,928,945 8,175,172 2.13 TRADE RECEIVABLES (Amount in Rs.)Particulars As at 31.03.2018 As at 31.03.201TradeReceivables:-foraperiodlessthan6month 7,086,869 --foraperiodmorethan6month - - 7,086,869 - 2.14 CASH AND BANK BALANCES (Amount in Rs.)Particulars As at 31.03.2018 As at 31.03.2017a.Cashandcashequivalents i.Balanceswithbanks InCurrentAccount 957,375 799,767InSpecialAccount - -ii.Cashonhand 8,060 1,845iii.OtherBankbalances a.InUnpaidDividendAccount 1,206,848 1,201,432b.ShortTermBankdeposits 12,500,000 12,500,000(Lessthan12months) 14,672,283 14,503,044 2.15 SHORT TERM LOAN & ADVANCES Particulars As at 31.03.2018 As at 31.03.2017Loan&AdvancesRecoverableinCashorinKindorforvaluetobereceivedandconsiderasgood:Loan-Intercorporate 13,056,824 7,069,250Supplieradvance 2,017,180 1,826,500Staffadvances 21,527 - 15,095,531 8,895,750

2.16 OTHER CURRENT ASSETS (Amount in Rs.)Particulars As at 31.03.2018 As at 31.03.2017PrepaidExpenses 56,661 166,667SecurityDeposits 33,600 33,600InterestAccruedButNotreceived 401,650 422,183AdvanceTax/TDS(Netofprovision) 1,136,871 322,677SwacchBharatCessexcesspaid - 150Cenvatcredit - 59,507CenvatcreditonKrishiKalyanCess - 2,456Commissionandbrokeragereceivable - 278,396 1,628,782 1,285,636



FSL2.17 REVENUE FROM OPERATIONS (Amount in Rs.)Particulars For the year ended For the year ended 31.03.2018 31.03.2017Commission&Brokerage(Net) 30,952,500 2,286,747Incomefromconsultancy - 1,200,000Interest -TaxFreeInterestonbonds 24,528 24,528 -Bonds 1,056,086 1,052,784 -OnLoans(ICD) 2,035,519 2,545,476 -OnBankDeposits 906,289 4,022,422 954,657 4,577,445ReferralFees 135,000 - 35,109,922 8,064,192 2.18 OTHER INCOME (Amount in Rs.)Particulars For the year ended For the year ended 31.03.2018 31.03.2017CapitalGain-LongTerm -STT 40,991,977 20,923,045 -NonSTT 3,251,227 4,521,582 CapitalGain-ShortTerm -STT 30,060,976 15,930,165-NonSTT 11,760,985 86,065,165 586,322 41,961,114Dividendreceived 8,023,312 5,625,573RentRecieved 116,600 349,800Gratuity(ActurialGain) 243,915 -InterestonIncomeTaxRefund 25,545 -MiscellaneousIncome 22,815 303 94,497,352 47,936,790

2.19 EMPLOYEES BENEFIT EXPENSES (Amount in Rs.)Particulars For the year ended For the year ended 31.03.2018 31.03.2017#Salary,Wages&OtherBenefits 4,214,817 2,783,033ContributiontoProvidentFund&OtherFunds 143,938 78,816StaffWelfare 136,651 139,128Gratuity 2,594 51,465 4,498,000 3,052,442 #AsumofRs.1,08,345being25%salaryofanaccountantisapportionedtowardexpenditureforearningexemptincome. 2.20 FINANCE COSTS (Amount in Rs.)Particulars For the year ended For the year ended 31.03.2018 31.03.2017Bankcharges 684 -Interestpaid 1,133,100 1,433 1,133,784 1,433



FSL2.21 ADMINISTRATIVE & OTHER EXPENSES (Amount in Rs.)Particulars For the year ended For the year ended 31.03.2018 31.03.2017ProfessionalCharges 2,714,632 713,375CSRDonations - 960,000STTCharges 634,981 469,924Listingfee 251,250 229,000Rentpaid 402,165 134,200Travelling&Conveyance 39,432 112,669AGMExpenses 174,390 165,079Printing&Stationery 66,128 76,935Repairs&Maintenance 398,626 67,705Advertisement 244,034 63,413Payment to Auditors : -StatutoryAuditFee 21,000 21,000 -TaxAuditFee 9,000 30,000 9,000 30,000SecretarialAuditFee 10,000 10,050InternalAuditfee 10,000 10,000OfficeMaintenanceExp. 66,464 41,988Postage&Telegram 31,282 17,200Telephone&InternetExpenses 25,229 21,099ElectricityExpense 5,659 -OtherExpenses 585,802 317,397 5,690,074 3,440,034

2.22 RELATED PARTY DISCLOSURE FollowingdisclosuresaremadeasperAccountingStandard18,regarding“RelatedPartyDisclosures”asnotifiedbytheCompaniesAccountingStandardRules(2016): (A) List of Related Parties (i) Wholly Owned Subsidiary: Nil (ii) Fellow Subsidiary: Nil (iii) Enterprise for which Reporting Enterprise is an Associate: Nil (iv) Individual having significant influence or control MrRakeshKJain MsPrernaJain (v) Relatives of individual having significant influence or control MsAridhiJain (vi) Key Management Personnel: Mr.GauriShankerPandey(WholeTimeDirector) Ms.RichaArora(CompanySecretary)andbecameWholeTimeDirectoreffectivefrom29.05.2017 Ms.SwarnaGowriS(ChiefFinancialOfficerResignedEffectivefrom21.10.2017) Mr.MayankAgarwal(ChiefFinancialOfficerappointedEffectivefrom21.10.2017) (vii) List of companies/enterprises, in which any of person (including any of relative), listed in (iv),(v) & (vi) have significant influence or control 1. FrontlineCapitalServicesLimited 2. FSLSoftwareTechnologiesLimited 3. HopeConsultantsLimited 4. WonderBuildtechPrivateLimited 5. PetalConsultantsPrivateLimited 6. AssociationofNationalExchangeMembersofIndia(ceasedtobedirectorw.e.f10.06.2017) 7. FSLConsultantsPrivateLimited 8. JainSinghal&AssociatesLLP(CovertedfromJainSinghal&Associates(Partnershipfirm)w.e.f25.04.2017) 9. JSAAdvisorsLLP 10. FrontInvestments&FinancialConsultantsLLP 11. PetalResortsPrivateLimited 12. VardhmanElectricalsPrivateLimited



FSL(B) Details of transactions relating to persons referred in item A above (Amount in Rs.)

(A) (B) (C ) 1. Rent Received from Ms Aridhi Jain -CurrentYear 116,000 - - 116,000-PreviousYear (349,800) - - (349,800)2. Amount paid to key managerial personnel as remuneration, conveyance,etc. -CurrentYear(MrGSPandey) - 722,400 - 722,400-CurrentYear(Ms.RichaArora) - 417,437 - 417,437-CurrentYear(Ms.SwarnaGowriS) - 319,168 - 319,168-CurrentYear(Mr.MayankAgarwal) - 181,547 - 181,547-PreviousYear(MrGSPandey) - (643,318) - (643,318)-PreviousYear(OtherKMP) - (739,810) - (739,810)3. Rent paid -CurrentYear - - 402,165 402,165-PreviousYear - - (134,200) (134,200)4. Brokerage paid to Frontline Capital Services Limited -CurrentYear - - 2,204,937 2,204,937-PreviousYear - - (1,558,841) (1,558,841) 116,000 1,640,552 2,607,102 4,363,654 (349,800) (1,383,128) (1,693,041) (3,425,969)

Balance outstanding as on 31.03.2018 Security Deposit - Asset -CurrentYear - - - --PreviousYear (159,000) - - (159,000)

Remuneration Payable -CurrentYear - 127,013 - 127,013-PreviousYear - (131,624) - (131,624) Amount receivable from Brokers -CurrentYear - - - --PreviousYear - - - -

2.23 QUANTITATIVE DETAILS

TheCompanyisengagedinfinancialconsultancy,distributionoffinancialproductsandinvestmentsinfinancialsecurities.AsthecompanyisnietheramanufacturingcompanynoratradingcompanythereforetherequirementofQuantativeDetailofPurchasesandSalesarenotapplicable.

2.24 DUES TO MICRO SMALL AND MEDIUM ENTERPRISES

Thecompanyhasnoduestomicroandsmallenterprisesduringtheyearended31March,2018andMarch31,2017.

Nature of transactions

Relatives of individual having significant influence or control

Key managerial personnel

Transaction with the companies/enterprises have

TotalA+B+C

Nature of transactions

Relatives of individual having significant influence or control

Key managerial personnel

Transaction with the companies/enterprises have

TotalA+B+C



FSL2.25 RETIREMENT BENEFITS A) GRATUITY Theemployees’GroupGratuitySchemeismanagedbyLifeInsuranceCorporationofIndia.ThepresentvalueofobligationisdeterminedbasedonactuarialvaluationusingtheProjectedUnitcreditMethod,whichrecognizeseachperiodofserviceasgivingrisetoadditionalunitofemployeebenefitentitlementandmeasureseachunitseparatelytobuildupthefinalobligation. Particulars Percentage Current Year Amount Percentage Previous Year Amount Actuarial assumptions DiscountRatePerAnnum 8% 8% SalaryEscalation 7% 6% Reconciliation of opening and closing balances of obligation Obligationatbeginningoftheyear 559,065 552,092CurrentServiceCost 39,831 28,771InterestCost 6,685 43,610Actuarial(gain)/loss 2,518 (65,408)Less:Benefitspaid (568,269) -Obligation at the end of the year 39,830 559,065 Reconciliation of opening and closing balances of fair value assets Fairvalueofplanassetsatbeginningoftheyear 805,574 711,964Employercontribution - 50,000Less:BenefitsPaid (568,269) -Add:Expectedreturnonplanassets 46,440 43,610Fair value of plan assets at the end of the year 283,745 805,574 Amount Recognized in Balance Sheet Presentvalueofobligation 39,830 559,065Fairvalueofplanassets 283,745 805,574Amount recognized in Balance Sheet (243,915) (246,509)Gratuity cost for the period CurrentServiceCost 39,831 28,771InterestCost 6,685 43,610Expectedreturnonplanassets (46,440) (43,610)Actuarial(gain)/loss 2,518 (65,408)Net Gratuity cost 2,594 (36,637)

B) Leaveaccumulatedduringtheyearlapseonthebalancesheetdateandthusnoprovisionforleaveencashmentismade.C) Contributiontoprovidentfundismademonthlyatpredeterminedratestotheappropriateauthorities. Note: 1. Thecompanyhasrecognisedthegratuityincome(actuarialgain)ofRs.2,43,915/-&gratuityexpensesofRs.2,594/-inFY 2017-18. 2. ThecompanyhasrecognisedtheexcessoffairvalueofplanassetsoverpresentvalueofobligationofRs.2,43,915/-asan assetsinFY17-18andGratuityPayableofRs.2,594/-asanliabilityinFY2017-18. 2.26 DEFERRED TAX BALANCES Particulars For the year For the year ended 31.03.2018 ended 31.03.2017a. Deferred Tax Liabilities (Net) (i)Depreciation 446,214 848,816 (ii)Others - - 446,214 848,816 b. Deferred Tax Assets (Net) (i)Depreciation - - (ii)Others(Capitalloss) 1,964,711 2,326,318 1,518,497 1,477,502



FSL2.27 SEGMENT REPORTING Thecompanyoperatesinonegeographicalsegment,i.e.Indiaandhasidentifiedtwobusinesssegmentsi.e.Segment-IwhichisConsultancyCommission&BrokerageandSegment-IIInvestmentsinBonds,FixedDeposits&Loans&Advances.SegmentProfit&LossismeasuredonthebasisofOperatingProfitorLossofeachrespectivesegment.SegmentAssetsandLiabilitieshavebeenapportionedsimilarly

(Amount in Rs.) Service, Commission Investment in Bonds/ Unallocated Total & Brokerage FDR/Loans & AdvancesSegment Revenue (A) -CurrentYear 31,087,500 4,022,422 94,497,353 129,607,274-PreviousYear (3,486,747) (4,577,445) (47,936,791) (56,000,982)Segment expense (B) -CurrentYear 5,190,089 5,070,314 1,061,455 11,321,858-PreviousYear (2,551,640) (2,484,974) (1,457,295) (6,493,909)Depreciation -CurrentYear 781,710 781,710 529,302 2,092,723-PreviousYear (81,760) (81,760) (178,130) (341,650)Segment Result (A) - (B) - Current Year 25,115,701 (1,829,602) 92,906,596 116,192,693 - Previous Year (853,347) (2,010,711) (46,301,366) (49,165,424) Segment Assets (A) -CurrentYear 36,442,098 67,911,092 371,264,731 475,617,921-PreviousYear (48,616,306) (80,754,613) (329,652,145) (459,023,063)Segment Liabilities (B) -CurrentYear 8,965,351 7,256,602 4,779,856 21,001,809-PreviousYear (12,453,510) (7,845,447) (2,112,333) (22,411,291) Total (A) - (B) -CurrentYear 27,476,746 60,654,490 366,484,874 454,616,111-PreviousYear (36,162,796) (72,909,166) (327,539,812) (436,611,772) Capital Expenditure -CurrentYear 17,313,317 17,313,317 - 34,626,634-PreviousYear (14,797,603) (14,797,603) - (29,595,206)

2.28 EARNING PER SHARE 2.28.1 The Earning Per Share (EPS) is calculated as follows: Particulars For the year ended For the year ended 31.03.2018 31.03.2017(i) ProfitattributabletoEquityShareHolders 99,640,581 44,996,863(ii) #Weightedaveragenumberofequitysharesforcomputations ofBasicandDilutedEarningpershare 7,052,182 7,186,689(iii)NominalValueofEquityShare 10 10(iv) EPS-BasicandDiluted 14.13 6.26

2.28.2 The basic & diluted EPS as on 31.03.2018 has been computed on reduced weighted average share capital after buy back. 2.29 Payment to Auditor (Amount in Rs.)Particulars For the year ended For the year ended 31.03.2018 31.03.2017A)Auditor (i)StatutoryAuditFees 21,000 21,000(ii)TaxAuditFees 9,000 9,000 30,000 30,000



FSL

2.33. [Schedule to the Balance sheet of a Non Banking Financial company as required in terms of paragraph 13 of Non Banking Financial (Non Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007] LIABILITIES SIDE 1 Loans and advances availed by the NBFC inclusive of interest Amount Amount accrued thereon but not paid: Outstanding Overdue a. Debentures(otherthanfallingwithinthemeaningofpublicdeposits) -Secured - - -Unsecured - - b. DeferredCredits(NoteNo.1) 11,151,256 - c. TermLoans - - d. Inter-corporateloansandborrowings - - e. CommercialPaper - - f. PublicDeposits(Refernote2below) - - g. OtherLoans–Cashcredit - -

2 Break up of 1(f) above (Outstanding public deposits inclusive Amount Amount of interest accrued thereon but not paid); Outstanding Overdue a. Intheformofunsecureddebentures - - b. Intheformofpartlysecureddebenturesi.edebentures - - wherethereisashortfallinthevalueofsecurity c. Otherpublicdeposits - -

2.30 Capital & Other Commitments EstimatedamountofcontractsremainingtobeexecutedonCapitalaccountandnotprovidedfor(netofadvances)Rs.7.38Lakhsason31stMarch2018(PreviousYear-Rs.84.88lakhs). 2.31 Foreign Exchange Earning and Expenditure Thecompanyhasnotmadeanyforeignexchangetransactionduringtheyear. 2.32 Corporate Social Responsibility TheCompanyshallutilizetheavailablefundsonlongtermprojectssuchaseducation,oldagehome,orphanageetc(asspecifiedunderscheduleVIIoftheCompaniesAct,2013forCSRActivities).TheCompanyisunderprocessoffindingsuitableoptionsandfinalizationoftheimplementationplanforthesame.Inviewoftheabove,thecompanyispreservingthefundssothatasandwhenadequateandappropriateoptionisavailabletothecompany,itwillutilizethemforCSRactivities.HencetheCompanyhasdecidednottospendtheamountonCSRduringtheyearunderreview. FOR AND ON BEHALF OF THE BOARD “AS PER OUR REPORT ATTACHED OF EVEN DATE” For M/s WALECHA INDER & ASSOCIATES Chartered Accountants Firm’s Registration Number : 014205N (RAKESH K. JAIN) (GAURI SHANKER PANDEY)Director Whole Time DirectorDIN : 00050524 DIN : 00050614 (Walecha Inder Jeet) Partner M.No: 093694 (CS RICHA ARORA) (CA MAYANK AGARWAL) Company Secretary Chief Financial Officer Place : NoidaM.No. :-42906 M.No.-544992 Date : 28/05/2018



FSLASSET SIDE 3 Break up of Loans and Advances including bills receivables Amount [other than those included in (4) below]: Outstanding a Secured - b Unsecured 13,056,824

4 Break up of Leased Assets and stocks on hire and other assets Amount counting towards AFC activities Outstanding i. LeaseAssetsincludingleaserentalundersundrydebtors: a. FinanceLease - b. OperatingLease - ii. Stocksonhireincludinghirechargesundersundrydebtors: a. Assetsonhire - b. RepossessedAssets - iii. OtherLoanscountingtowardsAFCactivities: a. Loanswhereassetshavebeenrepossessed - b. Loansotherthan(a)above -

5 Break up of Investments: Amounts Current Investments 1 Quoted i. Shares–Equity - –Preference - ii. DebenturesandBonds - iii. Unitsofmutualfunds - iv. GovernmentSecurities - v. Others - 2 Unquoted i. Share–Equity - –Preference - ii. DebenturesandBonds - iii. Unitsofmutualfunds - iv. GovernmentSecurities - v. Others - Long Term Investments 1 Quoted i. Shares–Equity 179,000,728 –Preference - ii. DebenturesandBonds 12,654,050 iii. Unitsofmutualfunds 99,654,369 iv. GovernmentSecurities - v. Others - 2 Unquoted i. Share–Equity 210 –Preference - ii. DebenturesandBonds - iii. Unitsofmutualfunds - iv GovernmentSecurities - v. Others -



FSL6 Borrowergroupwiseclassificationofallleasedassets,stockonhireandloansandadvances(Refernote3below): Category Amountnetofprovision Secured Unsecured Total 1 RelatedParties** - - - a. Subsidiaries - - - b. Companiesinthesamegroup - - - c. Otherthanrelatedparties - 13,056,824 13,056,824 Total - 13,056,824 13,056,824

7 Investorgroupwiseclassificationofallinvestments(currentandlongterm)insharesandsecurities(both quotedandunquoted):(Refernote4below) Category MarketValue/Breakup BookValue(NetofProvisions) offairvalueorNAV 1 RelatedParties** a. Subsidiaries - - b. Companiesinthesamegroup - - c. Otherrelatedparties - - 2 Otherthanrelatedparties 283,022,006 291,309,357 Total 283,022,006 291,309,357 **AsperAccountingStandardissuedbytheInstituteofCharteredAccountantsofIndia(‘ICAI’). 8 Other Information Amount i. GrossNon-PerformingAssets a. RelatedParties - b. Otherthanrelatedparties - ii. NetNon-PerformingAssets a. RelatedParties - b. Otherthanrelatedparties - iii. Assetsacquiredinsatisfactionofdebt -Notes:

1 AmountisduetoGreaterNoidaAuthorityforpurhaseofleaseholdlandof90Year.

2 Asdefinedinparagraph2(1)(xii)oftheNon-BankingFinancialCompaniesAcceptanceofPublicDeposits (ReserveBank)Directions,1998

3 ProvisioningnormsshallbeapplicableasprescribedintheNon-BankingFinancialCompaniesPrudential Norms(ReserveBank)Directions,1998

4 AllAccountingStandardsandGuidanceNotesissuedbytheInstituteofCharteredAccountantsofIndia(‘ICAI’)areapplicableincludingforcalculationofinvestmentsandotherassetsasalsoassetsacquiredinsatisfactionofdebts.However,marketvalueinrespectofquotedinvestmentsandbreakup/fairvalue/NAVinrespectofunquotedinvestmentsshouldbedisclosedirrespectiveofwhethertheyareclassifiedaslongtermofcurrentincategory5above.

FOR AND ON BEHALF OF THE BOARD

“AS PER OUR REPORT ATTACHED OF EVEN DATE” For M/s Walecha Inder & Associates Chartered Accountants Firm’s Registration Number- 014205N (RAKESH K. JAIN) (GAURI SHANKER PANDEY) Director Director DIN : 00050524 DIN : 00050614

(Walecha Inder Jeet) Partner M.No: 093694(CS RICHA ARORA) (CA MAYANK AGARWAL) Company Secretary Chief Financial Officer Place : Noida M.No. :-42906 M.No. : 544992 Date: 28/05/2018



FSLSHAREHOLDER INFORMATION FORM

(ForusebyshareholdersholdingSharesinPhysicalmodeonly)

To,

TheCompanySecretary

M/sFrontlineSecuritiesLimited Place:........................

M-6,M-BlockMarket,GreaterKailash-II

NewDelhi-110048 Date:..................

DearSirs,

Iherebyrequestyoutoupdateyourrecordsasperinformationgivenbelow:

Membersarerequestedtoprovidethebelowmentionedinformation:

1. FolioNo.:..................................................................................................................................................

2. No.ofShares:.............................................................................................................................................

{FolioNo.asgiveninequitysharecertificate(s)}

3. Member’sName:Shri/Smt./Kum.:...........................................................................................................

4. Member’sAddress:...................................................................................................................................

..................................................................................................................................................................

5. EmailID:...................................................................................................................................................

Iherebydeclarethattheaboveparticularsgivenabovearecorrectandcomplete.

SignatureoftheFirstNamed/SoleMember

NOTE:

1. PleasecompletetheformandsendittoCompanyattheaboveaddressifyouareholdingsharecertificate(s)inphysicalform.

2. IncaseyoursharesareinDematerializedform,inform/updateyourinformationdirectlywiththeDepositoryParticipant(DP)withwhomyouaremaintainingDematAccountandnottotheCompanyoritsRegistrar.

3.Incaseofmorethanonefolio,pleasecompletethedetailsonseparatesheets.



FSL

Sender’sNameandAddress

3rdfold

1stfold

2ndfold



FSLECS MANDATE FORM

(ForusebyshareholdersholdingSharesinPhysicalmodeonly)

To,

TheCompanySecretary

M/sFrontlineSecuritiesLimited Place:...............................

M-6,M-BlockMarket,GreaterKailash-II Date:...............................

NewDelhi-110048

DearSirs,

IherebyconsenttohavetheamountofDividendonmyequitysharescreditedthroughtheElectronicClearingSystem(CreditClearing)-(ECS).Theparticularsare:

1.FolioNo.:..................................................................................................................................................

{FolioNo.giveninequitysharecertificate(s)}

2.Member’sName:Shri/Smt./Kum.:...........................................................................................................

3.Member’sAddress:...................................................................................................................................

..................................................................................................................................................................

4. ParticularsoftheBankAccount:

BankName:..............................................................................................................................................

BranchName:...........................................................................................................................................

Mentionthe9-digitcodenumberofthebankandbranchappearingontheMICR

Chequeissuedbythebank:......................................................................................................................

(PleaseattachaphotocopyofaChequeorablankcancelledChequeissuedbyyourbankfor verifyingtheaccuracyofthecodenumber)

Accounttype(Please)SavingCurrentCashCredit

Accountnumber(asappearingontheChequebook:)

Iherebydeclarethattheparticularsgivenabovearecorrectandcomplete.Ifthetransactionisdelayedornoteffectedatallforreasonsofincompleteorincorrectinformationforanyreasons,IwouldnotholdtheCompanyresponsible.Ialsoundertaketoadvisechanges,ifany,intheparticularsofmyaccounttofacilitateupdationofrecordsforpurposesofcreditofDividendamountthroughECS.

Signature of the First Named /Sole Member

Note: 1. PleasecompletetheformandsendittoRegister&ShareTransferAgentattheaboveaddressifyouareholdingsharecertificate(s)inphysicalform,latestby,September18th,2018.

2. IncaseyoursharesareinDematerializedform,inform/updateyourinformationdirectlywiththeDepositoryParticipant(DP)withwhomyouaremaintainingDematAccountandnottotheCompanyoritsRegistrar.

3. Incaseofmorethanonefolio,pleasecompletethedetailsonseparatesheets.

4. SubjecttotherulesandregulationsoftheSchemeofECSoftheReserveBankofIndiafromtimetotime.



FSL

Sender’sNameandAddress

3rdfold1stfold

2ndfold



FSLNO GIFTS WILL BE DISTRIBUTED AT THE AGM

FormNo.MGT-11PROXY FORM

[Pursuanttosection105(6)oftheCompaniesAct,2013andRule19(3)oftheCompanies

(ManagementandAdministration)Rules,2014]

CIN:L65100DL1994PLC058837

Name of the Company:FrontlineSecuritiesLimited

Registered Office:M-6,IIndFloorM-BlockMarket,GreaterKailash-II,NewDelhi-110048

I/We,beingthemember(s)of………….sharesoftheabovenamedcompany,

herebyappoint1. Name:............................................................................................................................................................. Address:........................................................................................................................................................ E-mailId:...................................................................................................................................................... Signature:.......................................................................................................................,orfailinghim/he2.Name:.......................................................................................................................................................... Address:........................................................................................................................................................ E-mailId:..................................................................................................................................................... Signature:......................................................................................................................,orfailinghim/her3.Name:.......................................................................................................................................................... Address:........................................................................................................................................................ E-mailId:...................................................................................................................................................... Signature:......................................................................................................................,orfailinghim/her

Asmy/ourproxytoattendandvote(onapoll)forme/usandonmy/ourbehalfatthe24thAnnualGeneralMeetingof thecompany, tobeheldon the25thSeptember,2018at9:45 a.m.atPHDHouseLaxmipatSinghaniyaAuditorium,NewDelhiandatanyadjournment thereof inrespectofsuchresolutionsasareindicatedbelow:

Resolution No.1 AdoptionofAuditedFinancialStatementsforthefinancialyearendedMarch31,20182 DeclarationofdividendontheequitysharesforthefinancialyearendedMarch31,20183 Re-appointmentofMs.SarabjeetKaur,Director,whoretiresbyrotation4 RatificationofAppointmentofM/sWalechaInder&AssociatesasStatutoryAuditor.5. Sub-DivisionofequitysharesfromtheFaceValueofRs.10/-toFaceValueofRs.5/-pershare.6. AmendmenttoClauseVoftheMemorandumofAssociationoftheCompany7. AlterationofObjectsClausesintheMemorandumofAssociationoftheCompany8. Re-AppointmentofMr.GauriShankerPandeyastheWholetimeDirectoroftheCompany9. IncreaseinRemunerationpayabletoMs.RichaArora,WholeTimeDirector&CompanySecretaryoftheCompany.

Signedthis...........................................dayof....................................2018

Signatureofshareholder..................................SignatureofProxyholder(s).........................................

Note: This form of proxy in order to be effective should be duly completed and deposited at the Registered Office of the Company, not less than 48 hours before the commencement of the Meeting.

1 Revenue

stamp



FSL

NO GIFTS WILL BE DISTRIBUTED AT THE AGMFRONTLINE SECURITIES LIMITED

RegisteredOffice:M-6,MBlockMarket,GreaterKailash-II,NewDelhi-110048

ATTENDANCE SLIP

Iherebyrecordmypresenceatthe24thAnnualGeneralMeetingheldatPHDHouse,LaxmipatSinghaniaAuditorium,NewDelhionTuesday,the25thSeptember,2018at9.45a.m.

NameoftheShareholder(s)....................................................................................................(InBlockLetter)

Father’s/Husband’sName.................................................................................................................................

NameoftheProxyorCompanyRepresentative...................................................................(InBlockLetters)

*DPID.............................................................................*ClientId..............................................................

Regd.FolioNo...................................................................No.ofSharesheld...............................................

SignatureoftheShareholder’sorProxyofCompanyRepresentative

............................................................................................................................................................................

Note: Members/Proxies are requested to bring the duly filled in Attendance slip to the Annual General Meeting to be handed over at the meeting.

*Applicable for investors holding shares in electronic form.



FSL

(Landmark)

(AGM Venue)

Balbir Saxena Marg

PHD House

Siri Fort Auditorium

Outer Ring Road

Aug

ust

Kra

nti

Mar

gChaudhary Dalip singh marg

Aurobindo Marg

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