Audit report

INDEPENDENT AUDITOR’S REPORT

TO THE SHAREHOLDERS OF AUSTRALASIAN FOOD CORPORATION LIMITED

(FORMERLY VETILOT LIMITED)

Report on the Consolidated Financial Statements

We were engaged to audit the accompanying consolidated financial statements of Australasian Food Corporation Limited (formerly Vetilot Limited) and its Subsidiaries (together ‘the Group’) on pages 15 to 49, which comprise the consolidated statement of financial position of the Group as at 31 March 2016, the consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows of the Group for the year then ended, and a summary of significant accounting policies and other explanatory information.

This report is made solely to the Company’s shareholders, as a body, in accordance with the Companies Act 1993. Our audit work has been undertaken so that we might state those matters which we are required to state to them in an auditors’ report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company’s shareholders, as a body, for our audit work, for this report or for the opinions we have formed.

Directors’ Responsibility for the Financial Statements

The directors are responsible for the preparation and fair presentation of these consolidated financial statements in accordance with New Zealand Equivalents to International Financial Reporting Standards and International Financial Reporting Standards and for such internal control as the directors determine is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on conducting the audit in accordance with International Standards on Auditing (New Zealand). Because of the matters described in the Basis for Disclaimer of Opinion paragraph, however, we were not able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion.

Other than in our capacity as auditor, our firm carries out other assignments for the Group in the area of taxation compliance. The provision of these services has not impaired our independence. The firm has no other relationship with, or interests in, the Group

Basis for Disclaimer of Opinion

During the year ended 31 March 2016, transactions on behalf of the Group were undertaken through the personal bank accounts of an employee rather than the bank accounts of the Group. These transactions were outside the Group’s records and include the receipt of payment of Trade Receivables and the payment for the settlement of Trade Payables. As these transactions occurred outside of the Group’s records and we were unable to satisfy ourselves by alternative means the completeness, existence and accuracy of the Group’s Operating Revenue and Cost of Sales in the Consolidated Statement of Comprehensive Income; and Trade Receivables, Inventories and Trade Payables balances in the Consolidated Statement of Financial Position. Consequently, we were unable to determine whether any adjustments were necessary in respect of these balances.

In addition, we could not place reliance on the Group’s internal control processes to identify, account for and disclose related party transactions and balances. We were unable to satisfy ourselves by alternative means the completeness and accuracy of the Group’s related party transactions, balances and disclosures as detailed in Notes 10, 17 and 20 of the consolidated financial statements. Consequently, we were unable to determine if any adjustments were necessary in respect of these transactions, balances and disclosures.

August 30, 2016 AFC News
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