A F ENTERPRISES LIMITED CIN- L18100DL1983PLC016354 NOTES ANNEXED TO AND FORMING PART OF FINANCIAL STATEMENTS 1. Basis of preparation of Financial Statement

The Financial Statements of the company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The company has prepared these Financial Statements to comply in all material respect with the accounting standards notified under the Companies (Accounting standards) Rule, 2006, (as amended) and the relevant provision of the Companies Act, 2013. The Financial Statements have been prepared on the accrual basis and under the historical cost convention.

2. Summary of significant accounting policies :

a. Use of estimates The preparation of Financial Statements in conformity with Indian GAAP requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management's best knowledge of current event and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future period.

b. Fixed assets Fixed assets are carried at the cost of acquisition or construction less accumulated depreciation. The cost of fixed assets includes non-refundable taxes, duties, freight and other incidental expenses related to the acquisition and installation of the respective assets.

c. Depreciation Depreciation on fixed asset is provided on the Written Down Value Method. Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013.

d. Revenue recognition Having regards to the size, nature and level of operation of the business, the company is applying accrual basis of accounting for recognition of income earned and expenses incurred in the normal course of business.

e. Inventories Inventories includesshares for sale in ordinary course of business. Valuation of the same has been made at weighted average cost.

f. Investments Investments are stated at cost. Provision for diminution in value of investments is made only if such a decline is of permanent nature.

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A F ENTERPRISES LIMITED CIN- L18100DL1983PLC016354 NOTES ANNEXED TO AND FORMING PART OF FINANCIAL STATEMENTS g. Cash and cash equivalents

Cash and cash equivalents comprise cash- in- hand, cash at bank and short term investments with the original maturity of three months or less.

h. Taxes on Income Tax expense comprises of current tax and deferred tax. Current tax is measured at the amount expected to be paid to the tax authorities, using the applicable tax rates. Deferred income tax reflect the current period timing differences between taxable income and accounting income for the period and reversal of timing differences of earlier years/period. Deferred tax assets are recognised only to the extent that there is a reasonable certainty that sufficient future income will be available except that deferred tax assets, in case there are unabsorbed depreciation or losses, are recognised if there is virtual certainty that sufficient future taxable income will be available to realize the same. Deferred tax assets and liabilities are measured using the tax rates and tax law that have been enacted or substantively enacted by the Balance Sheet date.

i. Provisions A provision is recognized when the company has a present obligation as a result of past event, it is probable that an outflow of resource embodying economic benefits will be require to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are review at the end of each reporting date and adjusted to reflect the current best estimates.

j. Earnings Per Share Basic Earnings per Share has been calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Diluted Earnings per share has been computed by dividing the net profit after tax by the weighted average no. of equity shares considered for deriving basic earnings per share and also the weighted average no. of equity shares that could have been issued upon conversion of all dilutive potential equity shares.

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A F ENTERPRISES LIMITED CIN- L18100DL1983PLC016354 NOTES ANNEXED TO AND FORMING PART OF FINANCIAL STATEMENTS

24. There is no Micro, Small and Medium Enterprises as defined under Micro, Small & Medium Enterprises Development Act, 2006 to which Company owes dues which are outstanding for a period more than 45 days as on Balance Sheet Date.The information regarding Micro, Small and Medium Enterprises has been determined on the basis of information availed with the Company and has been duly relied by the auditors of the Company.

25. Provisions of Accounting Standard (AS) – 17 on ‘Segment Reporting’ are not been applicable to the Company.

26. Disclosure of Specified Bank Notes pursuant to notification no. G.S.R 308(E) dated 30th March, 2017 : Specified

Bank Notes

Other Denomination

Notes

Total

Closing Cash in Hand as on 8th November 2016

46,39,000 7,19,465 53,58,465

Add:Permitted Receipts Nil 1,19,000 1,19,000

Less:Permitted Payments Nil 2,51,655 2,51,655

Less: Amount Deposited in Banks 46,39,000 Nil 46,39,000

Closing Cash in Hand as on 31st December 2016

Nil 5,86,810 5,86,810

27. In the opinion of the management, the current assets, loans and advances have a

realizable value in the ordinary course of business is not less than the amount at which they are stated in the Balance Sheet.

28. Related party disclosures/ transactions (a)Related Parties covered:

(i) Key Management Personnel Mr. Santosh Kumar Kushawaha (Whole- time Director) Ms. CharuAggarwal (Director) Ms. Shweta Gupta (Director) Mr. Parveen Kumar (Director) Mr. Neeraj Kumar Singh (CFO) Mr. Navneet Mangal (Past Director) Mr. Pankaj Bansal (Past Director) Ms. Mamta Surkali(Past Company Secretary) Ms. Mukta Debnath (Company Secretary)

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(ii) Relatives of Key Management Personnel None

(iii) Enterprises owned or significantly influenced by the Key Management Personnel or their Relatives

RMS Mosquto Private Limited RDS Corporate ServicesPrivate Limited SNP Solutions Pvt Ltd.

(b) Transaction with Related Parties:-

29. Balance shown under head Sundry Debtors, Creditors and Advances are subject to

confirmation.

Transaction with Nature of Transaction 31/03/2017 (Rs.)

31/03/2016 (Rs.)

Key Management Personnel:- Mr. Santosh Kumar Kushawaha Mr. Praveen Kumar Ms. Mukta Debnath Ms. Charu Aggarwal Ms Mamta Surkali

Loan Taken Loan Repayment Loan Taken Loan Repayment Salary Salary Salary Salary

7,60,900 9,65,034 1,00,000 1,00,000 13,233 61,206 27,677 1,65,716

3,90,000 Nil Nil Nil Nil Nil Nil 36,000

Relatives of Key Management Personnel: None

Enterprises owned or significantly influenced by the Key Management Personnel or their Relatives:-

RDS Corporate Services Private Limited SNP Solutions Pvt Ltd.

Loan Given Loan Recovered Loan Given

5,90,012 49,000 2,01,000

Nil Nil Nil

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A F ENTERPRISES LIMITED CIN- L18100DL1983PLC016354 NOTES ANNEXED TO AND FORMING PART OF FINANCIAL STATEMENTS

30. Segment Information:

(a) The Company has identified four reportable segments viz., cloth fabrics, basmati rice, electronic accessories and advancing of loans after taking into account the nature of product and services and the differing risk and returns on such products and services. The accounting policies adopted for segment reporting are in line with the accounting policy of the company with following additional policies for segment reporting: -

(i) Revenue and expenses have been identified to a segment on the basis of relation to

operating activities of the segment. Revenue and Expenses relates to enterprise as a whole and are not allocable to a segment on reasonable basis have been disclosed as “Un-allocable”.

(ii) Segment Assets and Segment Liabilities represent Assets and Liabilities in respective segments. Assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as “Un-allocable”.

(b) Primary Segment information:-

Particulars 31st March 2017

(Rs.) 31st March 2016

(Rs.)

Segment Revenue: -

Sale of Shares 60,168,450 -

Cloth fabrics - 65,886,885.00

Rice - 114,685,995.00

Terminator Firewall 232,922 100,295.00

Advancing of Loans - 1,756,714.00

Un-allocable 30,448 -

Total Revenue 60,431,820 182,429,889.00

Segment Results (Profit/ loss before interest and taxes)

Sale of Shares 5,728,478

Cloth fabrics - (98,452.00)

Rice - 1,533,175.00

Terminator Firewall 21,386 4,595.00

Advancing of Loans - 1,756,714.00

Un-allocable (5,422,913) (2,584,729.00)

Less: Interest 76,204 102,736.00

Less: Other unallocable expenditure (net)

Total Profit Before Taxes 250,746 508,567

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Capital Employed (Segment Assets - Segment Liabilities)

Sale of Shares 38,970,000 -

Cloth fabrics - 1,026,550.00

Rice 4,629,915 7,104,915.00

Terminator Firewall (10,127)

Advancing of Loans 24,181,385 21,608,656.00

Un-allocable (38,664,588) (802,262.00)

Total

29,106,585

28,937,859.00

(c) Secondary Segment information: - The Company does not have secondary segment division in respect of reportable segments.

31. Particulars

31/03/2017 (Rs.)

31/03/2016 (Rs.)

Earnings/ Remittances and/ or Expenditure in Foreign Currency Foreign Travelling Expenses

94,153

Nil

32. Particulars 31/03/2017

(Rs.) 31/03/2016

(Rs.) Contingent Liability not provided for Nil Nil 33.Figures have been rounded off to the nearest rupees. 34.Figures in brackets indicate negative (-) figures. 35. Previous Year’s Figures have been re- arranged or re- grouped wherever

considerednecessary. Signed for the purpose of Identification FOR V.N. PUROHIT & CO. Chartered Accountants Firm Regn. 304040E Gaurav Joshi Partner Membership No. 516027 New Delhi, the 30thday of May 2017

For and on behalf of Board of Directors of A F ENTERPRISES LIMITED

Santosh Kumar Kushawaha Abhishek Singh MuktaDebnath Director Director Company Secretary DIN: 02994228 DIN: 03603706M. No. A40303

Neeraj Singh CFO

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