| Report on the Financial Statements
We have audited the accompanying financial statements of Avon
Corporation Limited ("the Company"), which comprise the Balance Sheet
as at March 31,2013, the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended and a summary of significant
accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in Section 211 (3C) of the
Companies Act, 1956 ("the Act") and in accordance with the accounting
principles generally accepted in India. This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatements,
whether due to fraud or error.
Auditors' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with the
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers the internal control relevant to the
Company's preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by Management, as well as evaluating the overall
presentation of the financial statements. We believe that the audit
evidence we have obtained is sufficient and appropriate to
provideabasis for ouraudit opinion.
Basis for Qualified Opinion
a) In respect of search operation carried bythe Income Tax
departmentthe company has admitted as under: Withdrawal of deduction
u/s. 80IC Rs. 18,25,82,248/-
Unexplained cash transaction Rs. 10,00,00,000/-
The assessment proceeding are on and special audit u/s. 142(2A) of the
Income Tax act 1961 has been ordered in respect of Assessment Year 2005
- 06 to 2011 -12. Tax liability on account of above is unascertained
b) Debtors, creditors, loans, Loans & advances are subjectto
confirmations
Opinion
Subjectto above our opinion and to the best of our information and
according to the explanations given to us, the financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31,2013;
(b) in the case of the Statement of Profit and Loss, of the loss of the
Company forthe year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows of the
Company forthe year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of Section
227 (4A) of the Act, we give in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the Order.
2. As required by Section 227(3) of the Act, we reportthat:
(a) we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary forthe purposes of
ouraudit;
(b) in our opinion, proper books of account as required by law have
been kept by the Company so far as appears.
(c) the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
(d) in our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
Section 211 (3C) of the Act.
(e) on the basis of written representations received from the directors
as on March 31,2013 and taken on record by the Board of Directors, none
of the directors is disqualified as on March 31,2013 from being
appointed as a director in terms of Section 274(1 )(g) of the Act.
For AtulB.Shah & Co.
Chartered Accountants F.R.NO.130818W
AtulShah Proprietor Memb.No.:033137
Mumbai
Dated: 30/05/2013
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