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Avon Lifesciences Ltd.

BSE: 531541 Sector: Industrials
NSE: N.A. ISIN Code: INE881A01015
BSE 00:00 | 19 Jun 8.55 -0.43
(-4.79%)
OPEN

8.55

HIGH

9.40

LOW

8.54

NSE 05:30 | 01 Jan Avon Lifesciences Ltd
OPEN 8.55
PREVIOUS CLOSE 8.98
VOLUME 6225
52-Week high 20.37
52-Week low 4.04
P/E
Mkt Cap.(Rs cr) 20
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 8.55
CLOSE 8.98
VOLUME 6225
52-Week high 20.37
52-Week low 4.04
P/E
Mkt Cap.(Rs cr) 20
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Avon Lifesciences Ltd. (AVONLIFESCIENCE) - Auditors Report

Company auditors report

To

The Members of Avon Lifesciences Limited

Report on the Financial Statements

We have audited the accompanying standalone financial statements of Avon LifesciencesLtd which comprise the balance sheet as at 31 March 2017 the statement of profit andloss and the cash flow statement for the year then ended and a summary of significantaccounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 with respect to the preparation and presentation ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit. We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder. We conducted our audit in accordancewith the Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement. An audit involves performing procedures to obtain audit evidence about theamounts and the disclosures in the financial statements. The procedures selected depend onthe auditor's judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company's preparation ofthe financial statements that give a true and fair view in order to design auditprocedures that are appropriate in the circumstances but not for the purpose ofexpressing an opinion on whether the Company has in place an adequate internal financialcontrols system over financial reporting and the operating effectiveness of such controls.An audit also includes evaluating the appropriateness of the accounting policies used andthe reasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India. i. In so far as it relates to the Balance Sheetof the statement of affairs of the company as at 31st March 2017. ii. In so faras it relates to the Profit & Loss Account the profit of the company for the yearended on that date: and iii. In so far as it relates to the Cash Flow the Cash FlowStatement of the company for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 issued by the CentralGovernment of India in terms of sub-section (11) of section 143 of the Act we give in theAnnexure a statement on the matters specified in the paragraph 3 and 4 of the Order tothe extent applicable.

2. As required by Section 143 (3) of the Act we report that: a. we have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purposes of our audit. b. in our opinion proper books ofaccount as required by law have been kept by the Company so far as it appears from ourexamination of those books; c. the balance sheet the statement of profit and loss and thecash flow statement dealt with by this Report are in agreement with the books of account;d. in our opinion the aforesaid financial statements comply with the Accounting Standardsspecified under

Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014; e. onthe basis of the written representations received from the directors as on 31 March 2017taken on record by the Board of Directors none of the directors is disqualified as on 31March 2017 from being appointed as a director in terms of Section 164 (2) of the Act; andf. with respect to the adequacy of the internal financial controls over financialreporting of the company and the operating effectiveness of such controls refer to ourseparate report in "Annexure B"; and g. with respect to the other matters to beincluded in the Auditor's Report in accordance with Rule 11 of the Companies (Audit andAuditors) Rules 2014 in our opinion and to the best of our information and according tothe explanations given to us : i. The company has disclosed the impact of pendinglitigation on its financial statements refer annexure to the auditor's report paragraph 7to the financial statement for matter of Income Tax. ii. The provisions as required underthe applicable law or accounting standards for material foreseeable losses if any on thelong term contracts including derivative contracts are not applicable to the company. iii.There has been no such requirement for transferring amounts required to be transferredthe Investor Education and Protection Fund transfer by the company. iv. The Company hasprovided requisite disclosures in its standalone financial statements as to holdings aswell as dealings in specified bank notes during the period from 8th November2016 to 30th December 2016 and these are in accordance with the books ofaccounts maintained by the Company.

for MUKESH MEHTA & ASSOCIATES

Chartered Accountants

Firm's registration number : 116309W

Mukesh Mehta Place :Mumbai

Proprietor

Date : 30.05.2017

Membership number 100407

ANNEXURE _ A TO THE AUDITORS' REPORT

The Annexure referred to in our Independent Auditors' Report to the members of theCompany on the financial statements for the year ended 31 March 2017 we report that : (i)(a) The Company has maintained proper records showing full particulars including detailsand situation of fixed assets.

(b) The Company has a regular programme of physical verification of its fixed assets bywhich fixed assets are verified in a phased manner at regular intervals. In accordancewith this programme certain fixed assets were verified during the year and no materialdiscrepancies were noticed on such verification. In our opinion this periodicity ofphysical verification is reasonable having regard to the size of the Company and thenature of its assets.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the company the immovable properties are held in the name ofthe company.

(ii) In respect of its inventories:

(a) The inventories has been physically verified during the year by the management atreasonable intervals. In our opinion the frequency of verification is reasonable.

(b) In our opinion and according to the information and explanation given to us theprocedure of physical verification of inventories followed by the management is reasonableand adequate in relation to the size of the company and nature of its business.

(c) On the basis of our examination of records of inventory we are of the opinion thatthe company is maintaining proper records of inventory. The discrepancies noticed onphysical verification between the physical stocks and book stocks were not material.

(iii) (a) The Company has not granted any loans to the bodies corporate covered in theregister under section 189 of the Companies Act 2013 (‘the Act'). (b) The companyhas given interest free loan to Associate Concern of the company. In the said loans themaximum amount outstanding at any time during the year was Rs. 51015 and the year endbalance was Rs. 51015.

(c) The company has taken unsecured interest free loans from the bodies corporatecovered in the register maintained under section 189 of the Act and the amount outstandingat the end of the year is Rs. 3171.40 lacs (Previous year Rs. 3171.40 lacs).

(iv) In our opinion and according the information and explanations given to us and onthe basis of our examination of the records of the company the company has not givenloans made investments or given guarantees which are covered by the provisions of Section185 and 186 of the act.

(v) The Company has not accepted any deposits from the public except equity shareswarrant 100000 issued at the price of Rs. 26/- per share including premium of Rs. 16/-per shares during previous year ended 2016-17. hence the directives issued by the ReserveBank of India and the provisions of section 73 to 76 or any other relevant provisions ofthe act and the rules framed there under are not applicable to the company.

(vi) The Central Government has prescribed the maintenance of cost records undersection 148(1) of the Act to the company and such accounts and records have been made andmaintained by the company. (vii) According to the records of the company the company isnot regular in depositing the undisputed statutory dues including provident fundEmployees' State Insurance Profession Tax Income Tax TDS Excise Duty Service TaxCess and any other statutory dues with the appropriate govt and semi govt authorities.There are arrears of outstanding such undisputed statutory dues at the last day of thefinancial year concerned for a period of more than six months from the date they becamepayable.

Particulars Amount in Rs.
ESIC 31418
Provident Fund 6686009
Professional Tax 626065
TDS 1381040
Service Tax 741487
Excise Duty 1497195
Income Tax 32754530

( viii) Based on our audit procedures and on the information and explanations given bythe management we are of the opinion that the company has delay /defaulted in repaymentof dues along with the interest thereon with the banks as at the end of the financialyear.

(ix) The Company does not raised any money by way of initial public offer or furtherpublic offer (including Debt instruments). We report that no funds raised on short termbasis have been used for long term investment by the company. Thus paragraph 3(ix) of theOrder is not applicable.

(x) According to the information and explanations given to us no fraud by the companyor any fraud on the Company by its officers or employees has been noticed or reportedduring the course of our audit.

(xi) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the company has not provided any remunerationthus the provisions of section 197 read with Schedule V to the Act is not applicable tothe company.

(xii) In our opinion and according the information and explanations given to us theCompany is not a Nidhi Company. Accordingly paragraph 3(xii) of the Order is notapplicable.

(xii) According to the information and explanations given to us and based on ourexamination of the records of the company transactions with related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

(xiv) According to the information and explanations given to us and based on ourexamination of the records of the company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year under consideration.

(xv) According to the information and explanations given to us and based on ourexamination of the records of the company the company has not entered into non-cashtransactions with Directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.

(xvi) As informed to us the company is not required to be registered under Section45-1A of the Reserve Bank of India Act 1934.

for MUKESH MEHTA & ASSOCIATES

Chartered Accountants

Firm's registration number : 116309W

Mukesh Mehta Place :Mumbai Proprietor Date : 30.05.2017 Membership number 100407

ANNEXURE _ B TO THE AUDITORS' REPORT

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013.

We have audited the accompanying standalone financial statements of M/s. AvonLifesciences Ltd which comprise the balance sheet as at 31 March 2017 the statement ofprofit and loss and the cash flow statement for the year then ended and a summary ofsignificant accounting policies and other explanatory information and internal financialcontrols of the company.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India". These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects. Our auditinvolves performing procedures to obtain audit evidence about the adequacy of the internalfinancial controls system over financial reporting and their operating effectiveness. Ouraudit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. We believe thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion on the Company's internal financial controls system over financialreporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India".

for MUKESH MEHTA & ASSOCIATES

Chartered Accountants

Firm's registration number : 116309W

Mukesh Mehta Place :Mumbai Proprietor Date : 30.05.2017 Membership number 100407