thanks for that Hilmar.
yes using aidr() helped.

but from the help file abt "file()" command i found followng
"You can include a path with the file name to search for a file in a directory or on a drive other than the current directory or drive."

so i specifying full path of file so it should return .F.!
interestingly i noticed same behaviour with "fopen()" command.

when i run followng code (fxp name same as am using in fopen) and it returns file handle even though the file does not exist in that location!
x=FOPEN('c:\testfxp.fxp')
?x
FCLOSE(x)