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Notes to Accounts of Avon Corporation Ltd.

Mar 31, 2012

1. LIABILITY AND ASSETS

Balances grouped under Sundry Debtors, Sundry Creditor, and Advances from Customers and Advances Recoverable in cash or in kind are subject to confirmation from respective parties.

2. SECURED LOAN

Secured loans security and other particulars:

(I) Term Loans & working capital loans from Banks/NBFC are secured by way of Mortgage/ Hypothecation of

Moveable/lmmovable assets, (ii) Term Loans & working capital loans are further secured by personal guarantees of Executive Chairman and/or the Managing Directors.

3. PREPAID EXPENSES:

Financial expense incurred during the current accounting period which provides benefit in several accounting period has been treated as revenue expense only for the period relating to the current accounting period and balance is treated as prepaid expenses to be adjusted on pro rata basis in the future accounting period.

4. FOREIGN CURRENCYTRANSACTIONS:

The company has carried out intermediary trade transactions in course of Export & Import of goods & Foreign Exchange Fluctuation Profit of Rupees Eighty Eight Thousand Three Hundred Eighty Two Only during the year.

5. INVENTORY

Stock at the end of the year is taken based on the physical verification conducted by the management.

6. BENEFITS TO EMPLOYEES:

The Company follows Accounting Standard 15 (Revised 2005) 'Employee Benefits'. It has classified the various employee benefits provided to employees as under :-

II Defined Benefit Plans

Contribution to Gratuity Fund

In accordance with Accounting Standard 15 (Revised 2005), actuarial valuation was done in respect of the aforesaid defined benefit plan of gratuity based on the the following assumptions:-

7. MICRO, SMALL AND MEDIUM ENTERPRISE

The identification of micro, small and medium enterprises suppliers as defined under the provisions of "Micro, small and medium enterprises development Act, 2006" is based on Management's Knowledge of their status. There are no dues to micro, small and medium enterprises as on March 31,2012.

8. COMMITMENTS AND CONTINGENT LIABILITIES

Note- Contingent Liabilities for Current period is NIL and for previous year was also NIL.

9. RELATED PARTY TRANSACTION

Information on Related party transaction as required by Accounting Standard (AS 18) for the year ended 31st March, 2012.

(a) Related parties where control exists

Subsidiaries Avon Corporation FZE

(b) Key management personnel

Mr. Pankaj saraiya Managing Director

Mrs. Rupalsaraiya Whole Time Director

Mrs. Shantaben P. Saraiya Director

Mr. R. M.Joshi Director

Mr. AnmolSekhri Director

Mr. GopalKrishanSharma Director

(c) Relative of Key management personnel

Mr. Pratapsinh saraiya Mr. Bhupendra Doshi

10. PREVIOUS YEAR COMPARATIVES FIGURE

Previous period's figures have been regrouped / reclassified wherever necessary to conform to the current year's classification.

11. SCHEDULES TO ACCOUNTS

Schedules 1 to 27 form an integral part of the Balance Sheet and Profit and Loss Account and are duly authenticated.


Mar 31, 2010

1. LIABILITY AND ASSETS

Balances grouped under Sundry Debtors, Sundry Creditor, and Advances from Customers and Advances Recoverable in cash or in kind are subjectto confirmation from respective parties.

2. SECURED LOAN

Secured loans - security and other particulars:

(I) Term Loans & working capital loans from Banks are secured by way of Mortgage/ Hypothecation of Moveable/lmmovable assets on pari-passu basis among all the lenders.

(ii) Foreign currency loans are secured by the undertaking given by Bank of India against letter of credit facility provided to the company and it is not hedged by derivative instruments or otherwise as on the balance sheet date.

(iii) Term Loans & working capital loans are further secured by personal guarantees of Executive Chairman and/or the Managing Directors.

3. AMORTIZATION OF EXPENSES FOR INCREASING AUTHORIZED SHARE CAPITAL:

Expense for increasing authorized share capital and GDR issue expenses is amortized over a period of five years.

4. ACQUISITIONS AND DISPOSAL:

The company acquired Avon Corporation FZE, a wholly owned subsidiary on 2nd of March 2010. From the date of incorporation till March 31,2010 there are no transactions in subsidiary and hence Consolid-ated Accounts as required under Accounting Standard 21, have not been prepared.

5. PREPAID EXPENSES:

Financial expense incurred during the current accounting period which provides benefit in several accounting period has been treated as revenue expense only for the period relating to the current accounting period and balance is treated as prepaid expenses to be adjusted on pro rata basis in the future accounting period.

6. PRE-RECEIVED INCOME:

Pre-received income from service contract charges have been apportioned on the basis of number of days services outstanding as at 31.03.2010

7. FOREIGN CURRENCY TRANSACTIONS:

The company has carried out intermediary trade transactions in course of Export & Import of goods & Foreign Exchange Fluctuation Loss of Rupees Three Crore Twenty One Lacs Ninety Three Thousand Two Hundred and sixty One Only during the year. Also Foreign Exchange fluctuation Loss of Two Crore Fifty Eight Lacs Seventy Five Thousand Four Hundred Eighty Only is booked for the fund of GDR during the year.

8. INVENTORY

Stock at the end of the year is taken based on the physical verification conducted by the management.

9. MICRO, SMALL AND MEDIUM ENTERPRISE

The identification of micro, small and medium enterprises suppliers as defined under the provisions of "Micro, small and medium enterprises development Act, 2006" is based on Managements Knowledge of their status. There are no dues to micro, small and medium enterprises as on March 31,2010.

10. UTILIZATION OF GDR ISSUE

Out of the amount raised by the company through GDR issued during Financial Year 2009-10, Rs 1038.45 Lacs has been utilized for capital expenditure and the entire unutilized proceed of Rs 3417.48 Lacs has been deposited with EURAM Bank at Austria.

11. COMMITMENTS AND CONTINGENT LIABILITIES

Note - Contingent Liabilities for Current period is NIL and for previous year was also NIL.

12. RELATED PARTY TRANSACTION

Information on Related party transaction as required by Accounting Standard (AS 18) for the year ended 31 st March, 2010

(a) Related parties where control exists

Subsidiaries Avon Corporation FZE (with effect from March 02,2010)

(b) Key management personnel

Mr. Pankaj saraiya Managing Director

Mrs. Rupal saraiya Whole Time Director

Mrs. Shantaben R Saraiya Director

Mr. R. M. Joshi Director

Mr. Anmol Sekhri Director

Mr. Gopal Krishanan Sharma Director

(c) Relative of Key management personnel

Mr. Pratapsinh Saraiya

Mr. Bhupendra Doshi

13. PREVIOUS YEAR COMPARATIVES FIGURE

Previous periods figures have been regrouped / reclassified wherever necessary to conform to the current years classification.

14. SCHEDULES TO ACCOUNTS

Schedules 1 to 21 form an integral part of the Balance Sheet and Profit and Loss Account and are duly authenticated.

 
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