To the Members of A.F. Enterprises Limited
Report on the Financial Statements
We have audited the accompanying financial statements of A.F. Enterprises Limited ('theCompany') which comprise the Balance Sheet as at 31st March 2014 theStatement of Profit and Loss Cash Flow Statement and a summary of significant accountingpolicies and other explanatory information.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation of these financial statements that give atrue and fair view of the financial position and financial performance of the Company inaccordance with the accounting principles generally accepted in India includingAccounting Standards referred to in subsection (3C) of section 211 of the Companies Act1956 ('the Act'). This responsibility includes the design implementation and maintenanceof internal control relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.
Our responsibility is to express an opinion on these financial statements based on ouraudit. We conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures elected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal control relevant to the Company's preparation and fair presentation ofthe financial statements in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by management aswell as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion.
In our opinion and to the best of our information and according to the explanationsgiven to us the financial statements give the information required by the Act inthe manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:
i. In the case of Balance Sheet of the state of affairs of the Company as at 31stMarch 2014;
ii. In the case of Statement of Profit and Loss of the profit for the year ended onthat date; and
iii. In the case of Cash Flow Statement of the cash flows for the year ended on thatdate
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2003 ('the Order') asamended issued by the Central Government of India in terms of sub-section (4A) of section227 of the Act we give in the Annexure a statement on the matters specifiedin paragraphs 1 of our Order.
2. As required by section 227(3) of the Act we report that:
a. We have obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purpose of our audit;
b. In our opinion proper books of account as required by law have been kept bythe Company so far as appears from our examination of those books;
c. The Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account;
d. In our opinion the Balance Sheet Statement of Profit and Loss and Cash FlowStatement dealt with by this report comply with the Accounting Standards referred to insub-section (3C) of section 211 of the Companies Act 1956; and
e. On the basis of written representations received from the directors as on 31stMarch 2014 and taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2014 from being appointed as a director interms of clause (g) of sub-section (1) of section 274 of the Companies Act 1956.
Signed for the purpose of identification
FOR V.N. PUROHIT & CO.
Firm Regn. No. 304040E
Membership No. 014238
New Delhi the 26th day of May 2014
"ANNEXURE" TO THE AUDITOR'S REPORT
(As referred in paragraphs of our report)
1. In respect of its fixed assets:
a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets on the basis of available information.
b) As explained to us all the fixed assets have been physically verified by themanagement in a phased periodical manner which in our opinion is reasonable havingregard to the size of the company and nature of its assets. No material discrepancies werenoticed on such physical verification.
c) In our opinion the company has not disposed off a substantial part of its fixedassets during the year and the going concern status of the company is not affected.
2. In respect of Inventories consisting of shares and securities held in other Company:
a) The inventories have been physically verified during the year by the management. Inour opinion the frequency of verification is reasonable.
b) In our opinion and according to the information and explanations given to us theprocedures of physical verification of inventories followed by the management arereasonable and adequate in relation to the size of the company and the nature of itsbusiness.
c) The Company has maintained proper records of inventories. As explained to us therewere no material discrepancies noticed on physical verification of inventories as comparedto the book records.
3. In respect of the loans secured or unsecured granted or taken by the companyto/from companies firms or other parties covered in the register maintained under section301 of the Companies Act 1956:
a) In our opinion and according to the information and explanation given to us thecompany has not granted any loans secured or unsecured during the year to companiesfirms or other parties covered in the register maintained under Section 301 of theCompanies Act 1956. Consequently the requirements as per sub- clause (iii) (a) (b) (c)and (d) of paragraph 4 of the order are not applicable in case of the company.
b) The Company has not taken any loans secured or unsecured during the year fromcompanies firms or other parties covered in the register maintained under Section 301 ofthe Companies Act 1956. Consequently the requirements as per sub- clause (iii) (e) (f)and (g) of paragraph 4 of the order are not applicable in case of the company.
4. In our opinion and according to the information and explanation given to us thereis an adequate internal control system commensurate with the size of the Company and thenature of its business for the purchase of inventory and fixed assets and for the sale ofgoods or services. During the course of our audit we have not observed any continuingfailure to correct major weaknesses in internal control system.
5. As explained and according to information given to us there has not been anycontract or arrangement referred to in section 301 of the Act particulars of which needto be entered in the register required to be maintained under section 301 of the CompaniesAct 1956.
6. According to the information and explanations given to us the Company has notaccepted any deposits from the public. Therefore the provisions of Clause (vi) ofparagraph 4 of the Order are not applicable to the company.
7. In our opinion the Company has an 'in- house' internal audit system commensuratewith the size of the company and the nature of its business.
8. The cost record maintained by the Companies (Cost Accounting Records) Rules 2011prescribed by the Central Government under section 209(1)(d) of the Companies Act 1956are not applicable to the company.
9. In respect of statutory dues:
a) According to the records of the company undisputed statutory dues includingProvident Fund Investor Education and Protection Fund Employees State InsuranceIncome-tax Sales-tax Wealth Tax Service Tax Custom Duty Excise Duty Cess and otherstatutory dues have been generally regularly deposited with the appropriate authorities.According to the information and explanations given to us there are no undisputed amountpayable in respect of the aforesaid statutory dues were outstanding as at 31.03.2014 for aperiod of more than six months from the date of becoming payable.
b) According to the information and explanations given to us there are no outstandingstatutory dues on the part of company which is not deposited on account of dispute.
10. According to the information and explanations given to us the accumulated lossesof the company are less than fifty per cent of its net worth. The company has not incurredany cash losses during the financial year covered by the audit and in the immediatelypreceding financial year.
11. According to the information and explanations given to us the company has nottaken any loan from any financial institution or bank or debenture holder.
12. The Company has not granted loans and advances on the basis of security by way ofpledge of shares debentures and other securities and in our opinion adequate documentsand records are maintained.
13. The Company is not a chit fund nidhi or mutual benefit society. Therefore theprovisions of clause (xiii) of paragraph 4 of the Order are not applicable to the Company.
14. The Company has kept adequate records of its transactions and contracts in sharessecurities debentures and other investments and timely entries have been made therein.The shares securities debentures and other investments held by the company in it's ownname.
15. According to the information and explanations given to us the company has notgiven any guarantee for loans taken by others from bank or financial institutions.
16. As per information and explanations given to us the company has not obtained anyterm loans during the year and no term loans are outstanding on the company at the end ofyear.
17. According to the information and explanations given to us no funds raised onshort-term basis have been used for long-term investment.
18. The Company has made preferential allotment of shares to the parties listed in theregister maintained under section 301 of the Companies Act 1956. According to theinformation and explanations given to us the price at which such shares have been issuedis not prejudicial to the interest of the Company.
19. The company has not issued any debentures. Hence the requirements of sub- clause(xix) of paragraph 4 of the Order are not applicable to the company.
20. As explained to us the management has disclosed on the end use of money raised bypublic issues and the same has been verified.
21. According to the information and explanations given to us a fraud on or by thecompany has not been noticed or reported during the year.
FOR V.N. PUROHIT & CO.
Firm Regn. No. 304040E
Membership No. 014238
New Delhi the 26th day of May 2014