avon corporation ltd Auditors report

Independent Auditors Report

TO THE MEMBERS OF AVON CORPOTATION LIMITED

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.

Managements Responsibility forthe 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 auditors 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 Companys 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 (Auditors 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 our audit;

(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.

ForAtulB.Shah&Co.

Chartered Accountants

F.R.NO.130818W

AtulShah

Proprietor

Memb.No.:033137

Mumbai

Dated: 30/05/2013