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A F Enterprises Ltd.

BSE: 538351 Sector: Financials
NSE: N.A. ISIN Code: INE663P01015
BSE 00:00 | 23 Aug 2.02 0.03
(1.51%)
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NSE 05:30 | 01 Jan A F Enterprises Ltd
OPEN 2.02
PREVIOUS CLOSE 1.99
VOLUME 152
52-Week high 4.18
52-Week low 0.76
P/E 0.43
Mkt Cap.(Rs cr) 1
Buy Price 1.99
Buy Qty 90.00
Sell Price 2.02
Sell Qty 42.00
OPEN 2.02
CLOSE 1.99
VOLUME 152
52-Week high 4.18
52-Week low 0.76
P/E 0.43
Mkt Cap.(Rs cr) 1
Buy Price 1.99
Buy Qty 90.00
Sell Price 2.02
Sell Qty 42.00

A F Enterprises Ltd. (AFENTERPRISES) - Auditors Report

Company auditors report

To

The Shareholders of AF ENTERPRISES LIMITED

Report on Financial Statements

We have audited the accompanying financial statements of AFENTERPRISES LIMITED(‘the Company')which comprise the Balance Sheet as at 31stMarch 2018the Statement of Profit and Loss(including Other Comprehensive Income) theCash Flow Statement and the Statement of Changes in Equity for the year then ended and asummary of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters statedin Section 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation of these financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including theIndian AccountingStandards (Ind-AS) specified under section 133 of the Act.

This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding of the assets of theCompany and for preventing and detecting frauds and other irregularities; selection andapplication of appropriateaccounting policies; making judgments and estimates that arereasonable and prudent; and designimplementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to thepreparation and presentation of thefinancial statements that give a true and fair view and are free frommaterialmisstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these financialstatements based on our audit.We have taken into account the provisions of the Act theIndian accounting and auditing standards and matters which are required to be included inthe audit report under the provisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditingspecified under Section 143(10) of the Act. 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 aboutthe amounts and the disclosures in the financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. In making thoserisk assessments the auditor considers internal financial control relevant to theCompany's preparation of the financial statements that give a true and fair view in orderto design audit procedures that are appropriate in the circumstances but not for thepurpose of expressing an opinion on whether the Company has in place the adequate internalfinancial control system over financial reporting and the operating effectiveness of suchcontrols.

(Cont…2)

An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the financial statements.

Opinion

In our opinion and to the best of our information and the explanationsgiven to us the financial statementsgive the information required by the Act in themanner so required and give a true and fair view in conformity with accounting principlesgenerally accepted in India:

i. In case of the Balance Sheet of the state of affairs of thecompany as at 31st March 2018; ii. In case of Statement of Profit and Loss of the lossand Comprehensive Income for the year ended on that date; and iii. In case of CashFlow Statement of the cash flows for the year ended on that date. iv. In case ofStatement of Changes in Equity of the Changes in Equity for the year ended on thatdate.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 (theOrder) as amended issued by the Central Government of India in terms of sub- section(11) of Section 143 of the Act we give in the Annexure- A a statement on thematters specified in paragraphs 3 and 4 of the said Order.

2. As required by Section 143(3) of theAct we report that:

a. We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.

b. In our opinion proper books of account as required by law have beenkept by the

Company so far as it appears from our examination of those books.

c. The Balance Sheet the Statement of Profit and Loss the Cash FlowStatement and the

Statement of Changes in Equity dealt with by this Report are inagreement with the books of account.

d. In our opinion the aforesaid financial statements comply with theIndian Accounting

Standards specified under Section 133 of the Act.

e. On the basis of the written representations received from thedirectors as on

31stMarch 2018 taken on record by the Board of Directors none of thedirectors is disqualified as on 31st March 2018 from being appointed as a director interms of Section 164 (2) of the Act.

f. The observation of financial transactions does not reveal any matterwhich has any adverse effect on the functioning of the Company.

g. With respect to adequacy of internal financial controls overfinancial reporting of the

Company and the operating effectiveness of such controls refer to ourseparate report in Annexure- B.

(Cont…3) h. With respect to the other matters to be included inthe Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 in our opinion and to the best of our information and according to theexplanations given to us:

i) The Company has disclosed the impact if any of the pendinglitigations in its financial statements;

ii) The Company has made provision as required under the applicablelaw or Indian accounting standards for material foreseeable losses. However companydoesnot enter into any long-term contracts including derivative during the specifiedperiod;

iii) The Company is not required to transfer any amount to theInvestorEducation and Protection Fund.

Signed for the purpose of identification

FOR V.N. PUROHIT & CO.

Chartered Accountants

Firm Regn. No. 304040E

S/d-

O.P. Pareek

Partner

Membership No. 014238

New Delhi the 30thday of May 2018

ANNEXURE- A TO THE AUDITOR'S REPORT

The Annexure referred to in Paragraph 1 under the heading of"Report on other Legal and Regulatory Requirements" of our report of even dateto the members of AF Enterprises Limited(the Company) for the year ended on 31stMarch 2018.

(i) (a) As per information and explanation given to us the Company ismaintaining proper records showing full disclosures of the fixed assets;

(b) As per information and explanation given to us physicalverification of fixed assets has been conducted once in a year by the management and nomaterial discrepancies were noticed during the course of verification;

(c) According to information and explanation given to us the companydoes not hold any immovable property during the period dealt with by this report;

(ii) As per information and explanation given to us physicalverification of inventory has been conducted once in a year by the management and nomaterial discrepancies were noticed during the course of verification;

(iii) According to information and explanations given to us theCompany has not granted unsecured loans to parties covered in register maintained undersection 189of the Companies Act 2013 and hence provisions of this sub- clause are notapplicable;

(iv) According to information and explanations given to us theCompany has complied with the provisions of Section 185 of the Companies Act 2013.

(v) According to information and explanations given to us the Companyhas not accepted public deposits and the provision of section 73 to 76 or other relevantprovisions of the Companies Act 2013 and rules framed thereunder are not applicable tothe Company;

(vi) According to information and explanations given to us the Companyis not liable to maintain cost records as prescribed under section 148(1) of the CompaniesAct 2013;

(vii) (a) According to information and explanations given to usthecompany is generally regular in depositing undisputed statutory dues including income-taxand any other applicable statutory dues to the appropriate authorities and there are nooutstanding statutory dues as on the last day of the financial year concerned for a periodof more than six months from the date they became payable;

(b) According to information and explanations given to us there are nooutstanding statutory dues on the part of Company which is not deposited on account ofdispute;

(viii) According to information and explanations given to us thecompany has not obtained any loans and borrowings from any financial institution bankgovernment or dues to debenture holders and hence question of default of repayment doesnot arise;

(ix) According to information and explanations given to us the Companyhas not raised money by way of initial public offer or further public offer. The Companyhas not taken any term loans and hence question of its utilization does not arise;

(x) According to information and explanations given to us there is nonoticed or unreported fraud on or by the Company during the year under audit;

(xi) According to information and explanations given to us the Companyhas paid managerial remuneration in accordance with applicable provisions of the CompaniesAct 2013;

(xii) As per information the Company is not a Nidhi Company henceprovisions of sub- clause (xii) of the Paragraph 3 of the Order are not applicable;

(xiii) According to information and explanations given to usalltransactions with the related parties are in compliance with sections 177 and 188 ofCompanies Act 2013 wherever applicable and the details have been disclosed in thefinancial statements etc.as required by the applicable Indian accounting standards;

(xiv) According to information and explanations given to us theCompany has not made any preferential allotment or private placement of shares or fully orpartly convertible debentures during the year under review;

(xv) According to information and explanations given to us the Companyhas not entered into non- cash transactions with directors or persons connected with him;

(xvi) According to information and explanations given to us theCompany isnot a Non- Banking Financial Companyand does not requiredto be registered underSection 45-IA of the Reserve Bank of India Act 1934.

Signed for the purpose of identification

FOR V.N. PUROHIT & CO.

Chartered Accountants

Firm Regn. No. 304040E

S/d-

O.P. Pareek

Partner

Membership No. 014238

New Delhi the 30thday of May 2018

ANNEXURE- B TO THE AUDITOR'S REPORT

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

We have audited the internal financial controls over financialreporting of AF Enterprises Limited(the Company) as on 31st March 2018 inconjunction with our audit of the financial statements of the Company for the year endedon that date.

Management's Responsibility for the Internal Financial Controls

The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal controls stated in the Guidance Note on Audit of Internal Financial Control overFinancial Reporting issued by the Institute of Chartered Accountants of India (ICAI).These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to company's policies thesafeguarding of its assets the prevention and detection of fraud and errors the accuracyand completeness of accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls over FinancialReporting (the Guidance Note) and the Standards on Auditing issued by ICAI and deemed tobe prescribed under Section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by the ICAI. Those Standards and the Guidance Note require thatwe comply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialaspects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial control system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidences we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A Company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A Company's internal financial control overfinancial reporting includes those policies and procedures that: -

(1) Pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of theCompany;

(2) Provide reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and the receipt and expenditures of the Company are beingonly in accordance with authorizations of management and directors of the Company; and

(3) Provide reasonable assurance regarding prevention or timelydetection of unauthorised acquisition use or disposition of the Company's assets thatcould have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over FinancialReporting

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and could notbe detected. Also projections of any evaluation of the internal financial control overfinancial reporting to future periods are subject to the risk that the internal financialcontrols over financial reporting may became inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material aspects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at 31st March 2018 basedon "the internal financial controls over financial reporting criteria considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls over Financial

Reporting issued by the Institute of Chartered Accountants ofIndia".

FOR V.N. PUROHIT & CO.

Chartered Accountants

Firm Regn. No. 304040E

S/d-

O.P. Pareek

Partner

Membership No. 014238

New Delhi the 30thday of May 2018