We have audited the attached Balance Sheet of FRONTLINE FINANCIAL
 SERVICES LIMITED as at 31st March 2012 and also the annexed Profit and
 Loss Account of the Company for the year ended on that date annexed
 thereto. These financial statements are the responsibility of the
 Company''s management. Our responsibility is to express an opinion on
 these financial statements based on our audit.
 
 We conducted our audit in accordance with auditing standards generally
 accepted in India. Those standards require that we plan and perform the
 audit to obtain reasonable assurance about whether the financial
 statements are free of material misstatements. An Audit includes
 examining, on a test basis, evidence supporting the amount and
 disclosures in financial principles used and significant estimates made
 by the management as well as evaluating the overall financial statement
 presentation. We believe that our audit provides a reasonable basis for
 our opinion.
 
 As per the Companies (Auditors report) order, 2003 issued by the
 Central Government of India in terms of Section 227 (4-A) of the
 Companies Act, 1956, we do hereby state that the company is exempted
 under the Companies (Auditors report) order, 2003, on the matter
 specified paragraph 4 and 5 of the said order.
 
 Further to our comments in the Annexure referred to above, we report
 that;
 
 1.  We have obtained all the information and explanations, which to the
 best of our knowledge and belief were necessary for the purpose of our
 Audit.
 
 2.  In our opinion, proper books of accounts as required by Law have
 been kept by the Company so far as appears from our examination of the
 books.  
 
 3.  The Balance Sheet & Profit & Loss Account dealt with by this report
 is in agreement with the books of accounts and comply with the
 Accounting Standards referred to in Sub- Section 3(C) of section 211 of
 the Companies Act, 1956.
 
 4. According to information and explanations given to us and on the
 basis of written representations from the directors of the Company,
 none of the Director is disqualified from being appointed as a director
 of the Company under section 274(1) (g) of the Companies Act, 1956.
 
 5.  In our opinion and to the best of our information and according to
 the explanation given to us, the said Balance Sheet and the Profit and
 Loss Account, together with the notes thereon give the information
 required by the Companies Act, 1956 in the manner so required and give
 a true and fair view: -
 
 a) In the case of the Balance Sheet of the state of affairs of the
 Company as at 31st March, 2012 and
 
 b) In the case of the Profit & Loss Account of the Profit for the year
 ended on that date.
 
                                       
 ANNEXURE
 
 (Referred to in paragraph 1 of our report of even date)
 
 i) (a) The Company has maintained proper records showing full
 particulars including quantities details and situation of Fixed Assets.
 
 (b) All the Assets have not been physically verified by the management
 during the year but there is regular program of Verification which, in
 our opinion, is reasonable having regard to the size of the company and
 the nature of its assets. No material discrepancies were noticed on
 such verification.
 
 ii) (a) In our opinion, physical verification of inventory has been
 conducted by Management at reasonable intervals.
 
 (b) The procedure of Physical Verification of inventory not followed by
 the management.
 
 iii)
 
 (a) As informed to us, the company has not granted any loans, secured
 or unsecured to companies, firms or other parties covered in the
 register maintained under section 301 of the Act. However, year end
 Balance of Loan taken from relatives of director is Rs.  NIL-
 
 (b) Not Applicable.
 
 (c) Not Applicable.
 
 (d) In respect of the aforesaid loans, the amount is payable on demand,
 the company is repaying the principal amount as & when demanded & has
 not been paying any interest.
 
 (e) The aforesaid loan is repayable on demand & therefore the question
 of overdue amount does not arise.
 
 iv) In our opinion and according to information & explanations given to
 us, there are adequate internal control procedures commensurate with
 the size of the company and the nature of its business for the purchase
 of inventory and Fixed assets and for the sale of goods. During the
 course of audit, no major weakness has been noticed in these internal
 controls.
 
 v) (a) According to the information and explanations given to us, we
 are of the opinion that the transactions that need to be entered into
 the register maintained under section 301 of the companies Act, 1956,
 hence not applicable.  
 
 vi) In our opinion, according to the information and explanations given
 to us, the company has not taken any deposit from the public.
 
 vii) In our opinion the company has an internal audit system
 commensurate with its size and nature of its business.  
 
 viii) As informed to us, the Central Government has not prescribed
 maintenance of cost records under section 209(1) (d) of the products of
 the company.
 
 ix) (a) The company is generally regular in depositing with the
 appropriate authorities, undisputed statutory dues including Provident
 Fund, Income tax, Sales-tax, Excise Duty, investors education and
 protection fund, wealth Tax, Custom Duty, Cess and other material
 Statutory dues applicable to it except Income Mat Tax Liability. There
 were no arrears for a period of more than six month from the date they
 became payable as at 31st March 2012
 
 (b) According to the information and explanation given to us, there are
 no cases of non-deposits with the appropriate authorities of disputed
 dues of sales tax/excise duty/custom duty/wealth tax/cess.
 
 x) The accumulated losses of the company are not more than 50% of its
 Net Worth. The company has not incurred any cash losses in current year
 
 xi) According to the information and explanations given to us, the
 company has not defaulted in repayment of dues to financial
 institutions/banks.
 
 xii) According to the information and explanations given to us, the
 company has not granted any loans and advances on the basis of security
 by way of pledge of Shares, debentures and other securities.  
 
 xiii) The company is not a chit fund or a nidhi mutual benefit
 fund/society.  Therefore, the provision of clause 4 (xiii) of the
 Companies (Auditor''s Report) Order 2003 is not applicable to the
 company.
 
 xiv) According to the information and explanations given to us, the
 company is dealing or trading in Shares, Securities, debentures and
 other investments.  Accordingly, the provisions of clause 4 (xiv) of
 the Companies (Auditor''s Report) Order 2003 is applicable to the
 company.
 
 xv) in our opinion, the terms and condition on which the company has
 given guarantees for loans taken by others from Bank or Financial
 Institutions are, prima facie, not prejudicial to the interest of the
 company.
 
 xvi) According to the information and explanations given to us in this
 year there is no term loan during the loan.  
 
 xvii) According to the information and explanations given to us and on
 an overall examination of the Balance Sheet of the company, we report
 that no funds raised on short-term basis have been used for long-term
 investment.
 
 xviii) The company has not made preferential allotment of shares
 to-parties and companies covered in the Register maintained under
 section 301 of the Act.  
 
 xix) According to the information and explanations given to us, no
 debentures and/or preference shares have been issued during the year.  
 
 xx) The company has not raised any money through a public issue.  
 
 xxi) Based upon the audit procedures performed and information and
 explanations given to us, we report that no fraud on or by the Company
 has been noticed or reported during the course of our audit.
 
 
                                       For, D.A.Rupawala & Associates 
                                                Chartered Accountants
 
                                                                 Sd/-
                                                   (Dawoodi Rupawala)
                                                           Proprietor
                                                     Firm No. 108902W
                                                   Membership : 37674
 
 PLACE : AHMEDABAD 
 Date  : April 18, 2012.