Frontline Securities Ltd Management Discussions.

1. Industry Structure and Development:

During the year under review the Stock Market in India improved by 9.68%. Nifty Improved from 9,220.06 as on 1st April, 2017 to 10,113.70 as on 31st March, 2018. Barring unforeseen circumstances, the Company expects to see improved Stock market during 2018-19 also.However the price of crude oil is increasing in the current period. Besides, the US interest Rate is also increasing. Due to global strategic situations, increase in crude oil prices, US interest rates and their economy, Indian Stock market may remain volatile during the current year (i.e. 2018-19). Hence the income from investments may remain little subdued/ uncertain. However the business of Mutual Fund Distribution is given more stress, we expect to do well in this regard during the current year. Considering above, barring unforeseen circumstances, the company should be able to maintain its performances in the coming years.

2. Opportunities and threats

The growth of the Company is subject to opportunities and threats as are applicable to the industry from time to time.

3. Segment wise performance & outlook

During the year under review, the Company operates in one geographical segment i.e. India & has identified two business segments i.e. Segment-I which is Consultancy, Commission & Brokerage & Segment-II Investments in Bonds, Fixed deposits & Loan & Advances. The company earned profit before tax of Rs.251.15 lakhs and incurred a loss of Rs. 18.30 lakh from Segment-I and Segment-II respectively.

4. Outlook

In the near future, the Company intends to continue to focus on its current business of investment and management consultation.

5. Risk and Concerns

While risk is an inherent aspect of any business, the Company is conscious of the need to have an effective monitoring mechanism and has put in place appropriate measures for its mitigation including business portfolio risk, financial risk, legal risk and internal process risks.

6. Internal Control Systems and their adequacy

The Companys internal control systems are commensurate with the nature of its business and the size and complexity of its operations. These systems are designed to ensure that all assets of the Company are safeguarded and protected against any loss and that all transactions are properly authorized, recorded and reported.

7. Financial Performance

(Rupees in Lakhs)

Particulars

Year ended 31.03.2018

Year ended 31.03.2017

Sales / income from operations

351.09

80.64

Other Income

944.97

479.36

Expenses

134.14

68.35

Profit Before Tax

1161.92

491.65

Less: Tax Expense
- Current Tax

231.02

88.92

- Mat Credit Entitlement

(65.09)

(46.85)

- Deferred Income Tax

(0.41)

(0.39)

Profit After Tax

996.40

449.97

Proposed Dividend

29.64

35.93

The details of financial performance of the Company are appearing in the Balance Sheet and Statement of Profit and Loss for the year.

8. Human Resources

The Company seeks respects and values the diverse qualities and background that its people bring to it and is committed to utilizing the richness of knowledge, ideas, experience that this diversity provides. The Company has built a resource base and cross-functional managers to take care of multi dimensional businesses.

9. Disclosure of Accounting Treatment

The Financial Statement has been prepared in Accordance with the Principles laid down in Accounting Standards.

10. Cautionary Statement

Statement in this Management Discussion and Analysis Report describing the companys objective, projects, estimates and expectations may be "forward looking statements" within the meaning of applicable laws and regulations. Actual results may differ materially from those either expressed or implied. Important factors that could make difference to the Companys operations within including change in government regulations, tax regimes, and economic development within and outside India. By Order of the Board of Directors For FRONTLINE SECURITIES LIMITED

RICHA ARORA Whole Time Director & Company Secretary

DIN:07825684

Place: Noida Date: 28.05.2018