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Future Enterprises Ltd.

BSE: 523574 Sector: Industrials
NSE: FEL ISIN Code: INE623B01027
BSE 00:00 | 22 Mar 40.90 -0.70
(-1.68%)
OPEN

41.05

HIGH

42.65

LOW

40.40

NSE 00:00 | 22 Mar 40.95 -0.55
(-1.33%)
OPEN

41.10

HIGH

42.45

LOW

40.55

OPEN 41.05
PREVIOUS CLOSE 41.60
VOLUME 87529
52-Week high 51.00
52-Week low 30.45
P/E
Mkt Cap.(Rs cr) 2,009
Buy Price 41.00
Buy Qty 369.00
Sell Price 42.00
Sell Qty 1.00
OPEN 41.05
CLOSE 41.60
VOLUME 87529
52-Week high 51.00
52-Week low 30.45
P/E
Mkt Cap.(Rs cr) 2,009
Buy Price 41.00
Buy Qty 369.00
Sell Price 42.00
Sell Qty 1.00

Future Enterprises Ltd. (FEL) - Auditors Report

Company auditors report

To

The Members of

FUTURE ENTERPRISES LMITED

(Formerly Known as Future Retail Limited)

Report on the Standalone Financial Statements

We have audited the accompanying Standalone Financial Statements of Future EnterprisesLimited ("the Company") which comprise the Balance Sheet as at March 312018the Statement of Profit and Loss (including other comprehensive income) the Cash FlowStatement and the Statement of Changes in Equity for the year then ended and a summary ofthe significant accounting policies and other explanatory information (hereinafter referedto as "Standalone Financial Statements").

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese Standalone Financial Statements that give a true and fair view of the financialposition financial performance including other comprehensive income cash flows andchanges in equity of the Company in accordance with the accounting principles generallyaccepted in India including the Indian Accounting Standards (Ind AS) prescribed underSection 133 of the Act read with relevant rules issued thereunder.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the StandaloneFinancial Statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these Standalone Financial Statementsbased on our audit.

In conducting our audit we have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and the Rules made thereunder and the Orderissued under Section 143(11) of the Act.

We conducted our audit of the Standalone Financial Statements in accordance with theStandards on Auditing specified under Section 143(10) of the Act. Those Standards requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the Standalone Financial Statements are free frommaterial misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the Standalone Financial Statements. The procedures selected depend onthe auditor's judgment including the assessment of the risks of material misstatement ofthe Standalone Financial Statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the Standalone Financial Statements that give a true and fair view in orderto design audit procedures that are appropriate in the circumstances. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the Standalone Financial Statements.

We believe that the audit evidence obtained by us is sufficient and appropriate toprovide a basis for our audit opinion on the Standalone Financial Statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Standalone Financial Statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at March 31 2018 and its loss total comprehensive income its cash flows and thechanges in equity for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of Section 143(11) of the Act we givein "Annexure A" a statement on the matters specified in paragraphs 3 and 4 ofthe Order.

2. As required by Section 143(3) of the Act based on our audit we report that:

a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit;

b) In our opinion proper books of accounts as required by law have been kept by theCompany so far as it appears from our examination of those books;

c) The Balance Sheet the Statement of Profit and Loss the Cash Flow Statement andStatement of Changes in Equity dealt with by this Report are in agreement with the booksof accounts;

d) In our opinion the aforesaid Standalone Financial Statements comply with the IndianAccounting Standards prescribed under Section 133 of the Act read with relevant rulesthereunder;

e) On the basis of the written representations received from the Directors as on March31 2018 taken on record by the Board of Directors none of the Directors is disqualifiedas on March 31 2018 from being appointed as a Director in terms of Section 164(2) of theAct;

f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting;

g) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 as amended inour opinion and to the best of our information and according to the explanations given tous:

i. The Company has disclosed the impact of pending litigations on its financialposition

in its Standalone Financial Statements. Refer Note 40 to the Standalone FinancialStatements;

ii. The Company did not have any long term contracts including derivative contract forwhich there were any material foreseeable losses;

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

For DMKH & Co.
Chartered Accountants
FRN : 116886W
CA Durgesh Kumar Kabra
Place : Mumbai Partner
Date : May 25 2018 Membership No. 044075

ANNEXURE - 'A' to the Independent Auditors' Report

Referred to in Paragraph 1 under the heading of "Report on other Legal andRegulatory Requirements" of our report to the members of Future Enterprise Limited ofeven date

On the basis of such checks as we considered appropriate and in terms of theinformation and explanations given to us we report that: -

i. a) The Company has maintained proper records showing full particulars includingquantitative details and situation of its fixed assets.

b) The Company has a regular programme of physical verification of its fixed assets bywhich fixed assets are verified in a phased manner over a period of three years. Inaccordance with this programme certain fixed assets were verified during the year and nomaterial discrepancies were noticed on such verification. In our opinion this periodicityof physical verification is reasonable having regard to the size of the Company and thenature of its assets.

c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company.

ii. a) As explained to us management has conducted physical verification of inventoryat regular intervals during the year.

b) In our opinion and according to the information and explanations given to us theprocedures of physical verification of inventory followed by the Management werereasonable and adequate in relation to the size of the Company and nature of its business.

c) In our opinion and according to the information and explanations given to us theCompany has maintained proper records of its inventories and no material discrepancieswere noticed on physical verification.

iii. According to the information and explanations given to us and on the basis of ourexamination of the books of account the Company has not granted loans secured orunsecured to companies firms Limited Liability Partnerships or other parties listed inthe register maintained under Section 189 of the Companies Act 2013. Consequently theprovisions of clauses 3(iii) of the order are not applicable to the Company.

iv. In our opinion and according to the information and explanations given to us theCompany has complied with the provision of Section 185 and 186 of the Companies Act 2013in respect of loans investment and guarantees and securities as applicable.

v. The Company has not accepted any deposits from the public.

vi. The maintenance of cost records has not been specified by the Central Governmentunder section 148(1) of the Companies Act 2013 for the business activities carried out bythe Company thus reporting under clause 3(vi) of the order is not applicable to theCompany.

vii. a) According to information and explanations given to us and on basis of ourexamination of the books of accounts and records the Company has been regular indepositing undisputed statutory dues including Provident Fund Employees' State InsuranceIncome-tax Service Tax Goods and Service Tax Custom Duty Excise Duty Value Added Taxcess and any other statutory dues with the appropriate authorities.

b) According to the information and explanations given to us no undisputed amountspayable in respect of Provident Fund Employees' State Insurance Income-tax Service TaxGoods and Service Tax Custom Duty Excise Duty Value Added Tax cess and other materialstatutory dues were in arrears as at of March 31 2018 for a period of more than sixmonths from the date they became payable.

c) According to the information and explanations given to us there are no dues inrespect of Income-tax Service Tax Goods and Service Tax Custom Duty Excise DutyValue Added Tax cess that have not been deposited with appropriate authorities on accountof dispute.

viii. Based on our audit procedures and on the basis of information and explanationsgiven by the management we are of the opinion that the Company has not defaulted inrepayment of loans or borrowings from banks and debenture holders. The Company has nottaken any loans from Government or any Financial Institution.

ix. Based on audit procedure and on the basis of information and explanation given bythe management we are of the opinion that money raised by Company by way of term loanhave been applied for the purpose for which they were raised. The Company did not raiseany money by way of Initial Public Offer or Further Public Offer.

x. To the best of our knowledge and belief and according to the information andexplanations given to us no fraud by the Company was noticed or reported during the yearalthough there were some instances of fraud on the Company noticed by the Management theamounts whereof were not material in the context of the size of the Company and the natureof its business and the amounts were adequately provided for.

xi. According to the information and explanations given to us we report thatmanagerial remuneration has been paid or provided in accordance with the requisiteapprovals mandated by the provisions of Section 197 read with Schedule V to the CompaniesAct.

xii. In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company. Therefore clause 3(xii) of the Order is not applicable.

xiii. According to the information and explanations given to us all transactions withthe related parties are in compliance with Sections 177 and 188 of Companies Act 2013where applicable for all transactions with the related party and the details of relatedparty transactions have been disclosed in the Financial Statements as required by theapplicable accounting standards.

xiv. During the Year the Company has not made any preferential allotment or privateplacement of shares fully or partly paid convertible debentures and hence reporting underclause 3 (xiv) of the Order is not applicable to the Company.

xv. In Our opinion and according to the information and explanations given by themanagement the Company has not entered into any non-cash transactions with directors orperson connected with him. Accordingly the provision of clause 3 (xv) of the Order arenot applicable to the Company.

xvi. The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For DMKH & Co.
Chartered Accountants
FRN : 116886W
CA Durgesh Kumar Kabra
Place : Mumbai Partner
Date : May 25 2018 Membership No. 044075

ANNEXURE - 'B' to the Independent Auditors' Report

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of FutureEnterprises Limited (Formerly Known as Future Retail Limited) ("the Company") asof March 31 2018 in conjunction with our audit of the Financial Statements of the Companyfor the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India ('ICAI'). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A Company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of Financial Statements for external purposes in accordance with generallyaccepted accounting principles. A Company's internal financial control over financialreporting includes those policies and procedures that:

1. pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

2. provide reasonable assurance that transactions are recorded as necessary to permitpreparation of Financial Statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and

3. provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial effect on the Financial Statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2018 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For DMKH & Co.
Chartered Accountants
FRN : 116886W
CA Durgesh Kumar Kabra
Place : Mumbai Partner
Date : May 25 2018 Membership No. 044075