Home  »  Company  »  Jyothy Laboratories  »  Quotes  »  Notes to Account
Enter the first few characters of Company and click 'Go'

Notes to Accounts of Jyothy Laboratories Ltd.

Mar 31, 2017

1. IMPAIRMENT

The goodwill is tested for impairment annually as at March 31st and accordingly no impairment charges were identified for FY 2016-17 (Nil for FY2015-16).

Goodwill of Rs.10,037.59 relates to the acquisition of erstwhile business of Henkel India Limited. Based on the purchase price allocation done at the time of acquisition, brands were identified and recognized in the books and accordingly goodwill was determined. Since it is not practicable to allocate the goodwill to various reportable segments, the recoverable amount has been determined collectively for all brands acquired and compared with the carrying value of goodwill plus brands. Further an amount of Rs.250.10 pertains to Fabric Care segment and has been entirely allocated to this reportable segment.

Following key assumptions were considered while performing impairment testing : -Terminal Value growth rate - 5%

Weighted Average Cost of Capital % (WACC) (Discount rate) - 13%

The projections cover a period of five years, as we believe this to be the most appropriate timescale over which to review and consider annual performances, before applying a fixed terminal value growth rate to the final year cash flows. The growth rates used to estimate future performance (revenue, cost of goods sold, expenses etc) are based on the conservative estimates from past performance.

We have performed sensitivity analysis around the base assumptions and have concluded that no reasonable change in key assumptions would cause the recoverable amount of CGU to be less than the carrying value.

Terms/ rights attached to equity shares

The Company has only one class of equity shares having par value of Re 1 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

1 4,000 Zero coupon non convertible redeemable debentures of Rs.10,00,000 each has been repaid in current year.

2) During the year Company has issued 4,000 unlisted, non-convertible debentures of '' 10 lacs each aggregating to Rs. 40,000 lacs. These debentures carry a interest of 7.2% p.a upto March 31, 2017, 7.5% p.a from April 1, 2017 to November 30, 2017 and 8% p.a from December 1, 2017 to November 9, 2018. 50% of the debenture amount is repayable at par at the end of the 14th month from the date of allotment, while the balance 50% is repayable at par at the end of 23rd month from the date of allotment. The debenture terms give call option / put option to the issuer / holder, the exercise price being at par. However, these are embedded derivative which are closely related to the host contract and accordingly under IND AS 109, they have not been separately accounted for. These debenture are secured by negative lien on fixed assets of the Company and do not carry any debt covenant.

3) Deferred payment liability represent amount payable under the memorandum of understanding (MOU) entered into with the DRDE/DRDO of the Ministry of Defense, Government of India for transfer of technology for certain products. These are due for payment as per the Agreement.

4) Commercial paper carries interest rate of 6.75 % and is repayable on June 28, 2017.

Terms and conditions of the above financial liabilities:

5) Trade payables are non-interest bearing and are normally settled on 30-60 days term

6) Other payable are non interest bearing and are settled within a year.

7) Interest payable is settled as per the term of the borrowings.

Based on the “management approach" as defined in Ind AS 108 - ''Operating Segments'', the Chief Operating Decision Maker evaluates the Company''s performance and allocate resources based on an analysis of various performance indicators by business segments and segment information is presented accordingly as follows :

8. Dishwashing includes dish wash scrubber and scrubber steel, dish wash bar, liquid and powder.

9. Fabric Care includes fabric whitener, fabric enhancer, bar soap and detergent powder.

10. Household Insecticides includes mosquito repellent coil, liquid and card and insect repellents.

11. Personal Care includes body soap, face wash, toothpaste, deodorants, talcum powder, after shave and moisturizer.

12. Others includes incense sticks and floor shine.

Segment assets include all operating assets used by a segment and consist principally of debtors, inventories, advances and fixed assets. Assets at corporate level are not allocable to segments on a reasonable basis and thus the same have not been allocated. Segment liabilities include all operating liabilities and consist principally of creditors and accrued liability.

Goodwill identifiable to operating segments are included in segment assets. However, where goodwill relates to multiple operating segments and it is not practicable to allocate between segments, it is included in unallocated assets. Finance cost, finance income and fair value gains and loss on financial assets are not allocated to any operating segments as the Company reviews the treasury and finance cost at the group level. Accordingly, borrowings are also considered in unallocated liabilities.

Current taxes, deferred taxes and certain financial assets and liabilities are not allocated to segments as they are also managed on group basis.

Capital expenditure consists of addition of property, plant and equipment and intangible assets.

Transfer pricing between operating segments are on as arm length basis in a manner similar to transaction with third parties.

Intersegment revenue are eliminated upon consolidation and reflected in the ''adjustment and eliminations'' colomn. All other adjustment and eliminations are part of detailed reconciliation presented further below.

13. Related Party Disclosures

14. Parties where control exists

Individual having control

M.P. Ramachandran Chairman and Managing Director

As the Managing Director of the Company is an individual having control and hence not separately disclosed as a Key management personnel.

Other Subsidiaries

Jyothy Kallol Bangladesh Limited

Four Seasons Drycleaning Company Private Limited

Snoways Laundrers & Drycleaners Private Limited

Jyothy Fabricare Services Limited

M/S JFSL-JLL (JV) - Partnership firm

15. Related party relationships where transactions have taken place during the year

Firm / HUF in which the relatives of individual having control are partners / members / proprietor

Quilon Trading Co.

M.P. Divakaran - H.U.F.

M.P. Sidharthan - H.U.F.

Relative of individual having control

M.P. Sidharthan M.R. Jyothy M.R. Deepthi Ananth Rao T Ravi Razdan M.P. Divakaran

Enterprises significantly influenced by key management personnel or their relatives

Sahyadri Agencies Ltd.

Key management personnel

K. Ullas Kamath Joint Managing Director & CFO

S. Raghunandan Whole Time Director & CEO upto May 23, 2016

Rajnikant Sabnavis Chief Operating Officer w.e.f. May 23, 2016

Bipin R. Shah Independent Director upto August 11, 2016

Nilesh B. Mehta Independent Director

R. Lakshminarayanan Independent Director K. P. Padmakumar Independent Director

M.R. Jyothy Director

Additional related party as per Companies Act, 2013.

M.L. Bansal Company Secretary upto May 23, 2016

Shreyas Trivedi Company Secretary from May 23, 2016

16. Commitments and Contingencies

17. Operating Lease

In case of assets taken on lease

The Company has entered into Lease agreements for premises, which expire at various dates over the next five years. Certain agreements provide for increase in rent. Lease rental expense for the year ended March 31, 2017 was Rs.1,418.94 (2016 – Rs.1,278.25). There are no restrictions imposed by lease arrangements.

In case of assets given on lease

The Company has leased out few of its premises on operating lease. The Gross carrying amount and accumulated depreciation as at March 31, 2017 is Rs. 178.06 and Rs. 22.83 (2016 - Rs. 178.06 and Rs. 11.44) respectively. Lease rent income for the year ended March 31, 2017 was '' 5.37 (2016 - Rs. 8.52). There is no escalation clause in the lease agreement and the lease is cancellable in nature. There are no restrictions imposed by lease arrangements.

On August 16, 2014 the Remuneration and Compensation Committee of the Board of Directors of the Company approved the Employee Stock Option Scheme 2014 (“ESOS-2014") for issue of stock options to the key employees and Employee Stock Option Scheme 2014-A (“ESOS- 2014-A") for issue of stock options to Whole Time Director & CEO of the Company. According to the scheme, whole time Director and CEO and eligible employees selected by the Remuneration and Compensation Committee will be entitled to options from time to time, subject to satisfaction of prescribed vesting conditions. The relevant terms of the grant are as below: -

18. During the year, the National Company Law Tribunal vide its Order dated March 01, 2017, approved the Scheme of Merger of Jyothy Consumer Products Marketing Limited (JCPML) with the Company with effect from the Appointed date of April 1, 2016. The merger has been accounted in accordance with the ''Business combinations of entities under common control'' as described in (Ind AS) 103 “Business Combinations" and accordingly as per approved scheme, the said merger has been accounted retrospectively for all periods presented including as at April 1, 2015. Accordingly, the financial statements for the year ended March 31, 2016 have also been restated so as to include the financial information of JCPML.

As per Appendix C of Ind AS 103:-

19. All assets and liabilities of JCPML as at April 1, 2015 have been taken over at their existing book values.

20. The debit balance of reserves of Rs. 43,667.85 as appearing in the financial statements of JCPML as on April 1,2015 is aggregated with the corresponding balance appearing in the financial statements of the Company.

21. The difference between the amount recorded as investment in JCPML in the books of the Company and the amount of share capital of JCPML, being a surplus has been transferred to capital reserve (Rs. 994.00) as per the scheme.

22. The Company has entered into an option agreement dated May 5, 2011 with Henkel AG & Co. KGaA (Henkel AG) whereby the Company has granted Henkel AG a firm and irrevocable option, at its sole discretion at any time after the beginning of the fifth year and ending upon the expiry of the sixth year of the said agreement or such other mutually extended period, to acquire a maximum of 26% of the issued equity share capital of the Company at a price which will be mutually determined by the parties at a later date. The Board of Directors have vide their meeting held on March 31,2017 extended this option up to October 31, 2017. The transaction will take place at the prevailing market price on the relevant date and accordingly the fair value of option is considered to be nil.

23. Significant accounting judgments, estimates and assumptions

The preparation of the Company''s financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

24. Judgments

In the process of applying the Company''s accounting policies, management has made the following judgments, which have the most significant effect on the amounts recognized in the financial statements:

Balance with government authorities and protest payment

The Company has significant receivable from government authorities in respect of protest payment made in earlier years towards Vat/Excise duty matters. The Company has received favourable orders from the Hounorable Supreme Court / High Court in these matters and accordingly assessed that all the amounts are fully recoverable.

25. Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

Impairment of non-financial assets

Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, which is the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal calculation is based on available data from binding sales transactions, conducted at arm''s length, for similar assets or observable market prices less incremental costs for disposing of the asset. The value in use calculation is based on a DCF model. The cash flows are derived from the budget and do not include restructuring activities that the Company is not yet committed to or significant future investments that will enhance the asset''s performance of the CGU being tested. The recoverable amount is sensitive to the discount rate used for the DCF model as well as the expected future cash-inflows and the growth rate used for extrapolation purposes.

Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using appropriate valuation techniques. The inputs for these valuations are taken from observable sources where possible, but where this is not feasible, a degree of judgment is required in establishing fair values. Judgments include considerations of various inputs including liquidity risk, credit risk , volatility etc. Changes in assumptions/judgments about these factors could affect the reported fair value of financial instruments.

Defined benefit plans (gratuity benefits)

The cost of the defined benefit gratuity plan and other post-employment leave benefits and the present value of the gratuity obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

The mortality rate is based on publicly available mortality tables. Those mortality tables tend to change only at interval in response to demographic changes. Future salary increases and gratuity increases are based on expected future inflation rates.

Share-based payments

Estimating fair value for share-based payment transactions requires determination of the most appropriate valuation model, which is dependent on the terms and conditions of the grant. This estimate also requires determination of the most appropriate inputs to the valuation model including the expected life of the share option, volatility and dividend yield and making assumptions about them. The assumptions and models used for estimating fair value for share-based payment transactions are disclosed in Note 38 Taxes

Deferred tax assets are recognized for unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilized. Significant management judgment is required to determine the amount of deferred tax assets that can be recognized, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.

Further, the Company has recognized Minimum Alternate Credit (MAT) which can utilized for a period of 15 years from the assessment year to which it relates to. Based on future projections of taxable profit and MAT, the Company has assessed that the entire MAT credit can be utilized. Also refer footnote number 10 in Note 50.

The management assessed that fair value of cash and cash equivalents, trade receivables, other financial assets, trade payables and other financial liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

Long-term receivables/advances given are evaluated by the Company based on parameters such as interest rates and individual creditworthiness of the customer. Based on this evaluation, allowances are taken into account for the expected credit losses of these receivables.

The fair value of borrowings and financial guarantee contracts is estimated by discounting future cash flows using rates currently available for debt on similar terms, credit risk and remaining maturities. The same would be sensitive to a reasonably possible change in the forecast cash flows or the discount rate. There are no unobservable inputs that impact fair value.

There are no financial instruments which require recurring fair value measurements and are classified as Level 3 of the fair value hierarchy.

26. Fair values hierarchy

The following table provides the fair value measurement hierarchy of the Company''s assets and liabilities: Quantitative disclosures fair value measurement hierarchy for assets :

The Company''s business activities are exposed to a variety of financial risks, namely liquidity risk, market risks and credit risk. The Company''s senior management has the overall responsibility for establishing and governing the Company''s risk management framework. The Company has constituted a core Management Committee, which is responsible for developing and monitoring the Company''s risk management policies. The Company''s risk management policies are established to identify and analyze the risks faced by the Company, to set and monitor appropriate risk limits and controls, periodically review the changes in market conditions and reflect the changes in the policy accordingly. The key risks and mitigating actions are also placed before the Audit Committee of the Company.

27. Liquidity risk

Liquidity risk is the risk that the Company will face in meeting its obligations associated with its financial liabilities. The Company''s approach in managing liquidity is to ensure that it will have sufficient funds to meet its liabilities when due without incurring unacceptable losses.

The Company maintained a cautious liquidity strategy, with a positive cash balance throughout the year ended 31st March, 2017 and 31st March, 2016. Cash flow from operating activities provides the funds to service the financial liabilities on a day-to-day basis. The Company regularly monitors the rolling forecasts to ensure it has sufficient cash on an on-going basis to meet operational needs. Any short term surplus cash generated, over and above the amount required for working capital management and other operational requirements, is retained as cash and cash equivalents (to the extent required) and any excess is invested in interest bearing term deposits and other highly marketable debt investments with appropriate maturities to optimize the cash returns on investments while ensuring sufficient liquidity to meet its liabilities.

For long term borrowings, the Company also focuses on maintaining / improving its credit ratings to ensure that appropriate refinancing options are available on the respective due dates

28. Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk. Financial instruments affected by market risk include loans and borrowings and deposits.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. This risk exist mainly on account of borrowings of the Company. However, all these borrowings are at fixed interest rate and hence the exposure to change in interest rate is insignificant. Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company is not exposed to significant foreign currency risk as at the respective reporting dates.

Price risk

The Company is mainly exposed to the price risk due to its investment in debt mutual funds. The price risk arises due to uncertainties about the future market values of these investments.

29. Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and other financial assets.

Trade receivables

Customer credit risk is managed by each business unit subject to the Company''s established policy, procedures and control relating to customer credit risk management. An impairment analysis is performed at each reporting date on an individual basis for major trade receivables.

Other financial assets

Credit risk from balances with banks and financial institutions is managed by the Company in accordance with the Company''s policy. Investments of surplus funds are made only in highly marketable debt instruments with appropriate maturities to optimize the cash return on instruments while ensuring sufficient liquidity to meet its liabilities.

30. Excessive risk concentration

Concentrations arise when a number of counterparties are engaged in similar business activities, or activities in the same geographical region, or have economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic, political or other conditions. Concentrations indicate the relative sensitivity of the Company''s performance to developments affecting a particular industry.

In order to avoid excessive concentrations of risk, the Company''s policies and procedures include specific guidelines to focus on the maintenance of a diversified portfolio. Identified concentrations of credit risks are controlled and managed accordingly.

31. Capital management

For the purpose of the Company capital management, capital includes issued equity capital and other equity reserves attributable to the equity holders of the Company. The primary objective of the Company''s capital management is to maximize the shareholder value.

The Company manages its capital so as to safeguard its ability to continue as a going concern and to optimize returns to shareholders. The capital structure of the Company is based on management''s judgment of its strategic and day-to-day needs with a focus on total equity so as to maintain investor, creditors and market confidence.

These financial statements, for the year ended 31 March 2017, are the first the Company has prepared in accordance with Ind AS. For periods up to and including the year ended 31 March 2016, the Company prepared its financial statements in accordance with accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP) and amended thereafter. Accordingly, the Company has prepared financial statements which comply with Ind AS applicable for periods ending on 31 March 2017, together with the comparative period data as at and for the year ended 31 March 2016, as described in the summary of significant accounting policies. In preparing these financial statements, the Company''s opening balance sheet was prepared as at 1 April 2015, the Company date of transition to Ind AS. This note explains the principal adjustments made by the Company in restating its Indian GAAP financial statements, including the balance sheet as at 1 April 2015 and the financial statements as at and for the year ended 31 March 2016.

Exemptions applied

Ind AS 101 allows first-time adopters certain exemptions from the retrospective application of certain requirements under Ind AS. The Company has applied the following exemptions:

- Ind AS 103 Business Combinations has not been applied to acquisitions, which are considered businesses under Ind AS that occurred before 1 April 2015. The carrying amounts of assets and liabilities in accordance with previous GAAP are considered as their deemed cost at the date of acquisition. After the date of the acquisition, measurements is in accordance with Ind AS. The carrying amount of goodwill in the opening Ind AS balance sheet is its carrying amount in accordance with the previous GAAP.

- The Company has elected to continue with the carrying value for all of its property, plant and equipment including intangibles as recognized in its Indian GAAP financials as deemed cost at the transition date.

- Ind AS 102 Share based payment has not been applied to equity instruments in share based payment transactions that vested before April 1, 2015.

- Appendix C to Ind AS 17 requires an entity to assess whether a contract or arrangement contains a lease. In accordance with Ind AS 17, this assessment should be carried out at the inception of the contract or arrangement. However, the Company has used Ind AS 101 exemption and assessed all arrangements based for embedded leases based on conditions in place as at the date of transition. There were no embedded leases.

- Investment in subsidiaries that are subsequently measured at cost have been measured at the deemed cost (Fair value) / for one subsidiary and Indian GAAP carring amount at all other Subsidiaries.

Estimates

The estimates at 1 April 2015 and at 31 March 2016 are consistent with those made for the same dates in accordance with Indian GAAP (after adjustments to reflect any differences in accounting policies).

Footnotes to the reconciliation of equity as at April 1, 2015 and March 31, 2016 and profit and loss for the year ended March 31, 2016 is as given below:-

32. FVTPL Financial assets

Under Indian GAAP, the Company accounted for investments in mutual funds as investments measured at quoted cost or market value whichever is lower. Under IND AS, investment in mutual funds are considered as financial assets fair valued through profit and loss account. At the date of transition to IND AS, difference between the fair value and Indian GAAP carrying amount has been adjusted to retained earnings. Further, the difference between the fair value and the Indian GAAP carrying amount as at March 31, 2016 has been considered in the profit and loss account.

33. Zero Coupon Non convertible debentures

The Company had issued zero coupon non-convertible debentures redeemable at premium, which were outstanding as on April 1, 2015. Under Indian GAAP, the Company had as per the provisions of the erstwhile Companies Act, 1956 debited the securities premium account with the entire redemption premium and credited the related liability. Under IND AS, these non-convertible redeemable debentures are measured at amortized cost. The Company has retrospectively applied the effective interest method (EIM) and arrived at amortized cost at the date of transition. Accordingly, in terms of the FAQ issued by the ICAI on the said matter, the excess of the carrying value of the financial liability as per Indian GAAP over the amortized cost amount arrived at by using EIM as per IND AS 109 as on the transition date has been reversed by crediting the securities premium account with corresponding debit to the liability account which was credited earlier. For the year ended March 31, 2016, Company has recognized finance cost of Rs. 5,160.38 in the profit and loss.

34. Financial guarantee

The Company had issued financial guarantee on behalf of its subsidiary for the borrowings taken by the latter. As on the date of transition to IND AS, the Company has recognized financial guarantee obligation at fair value of Rs. 82.09 with corresponding debit to investment in the subsidiary. For the year ended March 31, 2016, the change in the financial guarantee obligation based on amortized cost has been taken to the profit or loss.

35. Proposed dividend

Under Indian GAAP, proposed dividends including dividend distribution tax are recognized as a liability in the period to which they relate, irrespective of when they are declared. Under IND AS, a proposed dividend is recognized as a liability in the period in which it is declared by the company (usually when approved by shareholders in a general meeting) or paid.

In the case of the Company, the declaration of dividend occurs after period end. Therefore, the liability of Rs. 8,715.02 for the year ended on March 31, 2015 recorded for dividend has been derecognized against retained earnings on April 1, 2015. The proposed dividend for the year ended on March 31, 2016 of Rs. 2,179.92 recognized under Indian GAAP was reduced from other payables with a corresponding impact in the retained earnings.

36. Defined benefit obligation

Both under Indian GAAP and IND AS, the Company recognized costs related to its post-employment defined benefit plan on an actuarial basis. Under Indian GAAP, the entire cost, including actuarial gains and losses, are charged to profit or loss. Under IND AS, pre measurements comprising of actuarial gains and losses on the net defined benefit liability and the return on plan assets are recognized immediately in the balance sheet with a corresponding debit or credit to retained earnings through OCI. Thus, the employee benefits expense is reduced by Rs. 93.33 and is recognized in other comprehensive income (net of tax of Rs. 33.64) for the year ended March 31, 2016.

37. Deferred tax

Indian GAAP requires deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. IND AS 12 requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. The application of IND AS 12 approach has resulted in recognition of deferred tax on new temporary differences which was not required under Indian GAAP.

In addition, the various transitional adjustments lead to different temporary differences on which deferred tax adjustments have been recognized in correlation to the underlying transaction either in retained earnings or a separate component of equity. For the year ended March 31, 2016, the change in the deferred tax based on the above approach has been considered in the profit or loss.

38. Sale of goods

Under Indian GAAP, sale of goods was presented net of excise duty. However, under Ind AS, sale of goods includes excise duty. Excise duty on sale of goods is separately presented on the face of statement of profit and loss. Thus, sale of goods under Ind AS has increased by Rs. 5,965.53 with a corresponding increase in excise duty expense.

Further, under Indian GAAP, certain sale promotion expenses amounting was recognized as other expenses. Under Ind AS, revenue shall be measured at the fair value of the consideration received or receivable taking into account the amount of any trade discounts and volume rebates allowed by the entity. Thus, other expenses has decreased by Rs. 8,360.94 with corresponding increase in purchase of traded goods of Rs. 3,738.21 and decrease in sale of goods by Rs. 4,622.66.

39. Share-based payments

Under Indian GAAP, the Company recognized the intrinsic value of the employee stock option plans as an expense. Ind AS requires the fair value of the share options to be determined using an appropriate pricing model recognized over the vesting period. Accordingly, an expense of Rs. 122.43 has been reversed in Statement of profit and loss for the year ended 31 March 2016 and adjusted in separate component of equity.

40. Investment subsidy

The Company had received certain capital grants in the nature of promoter''s contribution which was credited to investment subsidy reserve under Indian GAAP. Under Ind AS, this will be considered as a capital grant. However, as the corresponding assets to which the grant pertain to have been fully depreciated, the balance in the investment subsidy on the transition date has been transferred to retained earnings.

41. Investment in subsidiaries and optionally convertible redeemable preference share

Under Indian GAAP, investment in subsidiaries are measured at cost less any allowance for diminution, other than temporary. Under Ind AS, the Company has on the transition date, in respect of one subsidiary measured the same at its fair value and considered this as the deemed cost as per Ind AS 101. Accordingly, the value of the investments has been reduced by Rs. 8,147.96 to reflect the fair values and the corresponding impact has been considered in retained earnings. The Company has not recognized any deferred tax assets on the transition date in the absence of reasonable certainty that long term capital gains will be available against which such deferred tax assets can be utilized.

Further, the Company had invested in optionally convertible redeemable preference shares of a subsidiary. Under Indian GAAP, the preference shares were classified as investment in subsidiaries and carried at cost. Under Ind AS, they have been considered as financial assets fair valued through profit and loss account and accordingly a reduction in value of this investments amounting to Rs. 2,314.00 has been considered on the transition date. The Company has not recognized any deferred tax assets on the transition date in the absence of reasonable certainty that long term capital gains will be available against which such deferred tax assets can be utilized. For the year ended March 31, 2016, the Company has recognized a fair value gain of Rs. 400.

42. Borrowings

Under Indian GAAP, transaction costs incurred in connection with borrowings are amortized upfront and charged to profit or loss for the period. Under Ind AS, transaction costs are included in the initial recognition amount of financial liability and charged to profit or loss using the effective interest method.

43. Other comprehensive income

Under Indian GAAP, the Company has not presented other comprehensive income (OCI) separately. Hence, it has reconciled Indian GAAP profit or loss to profit or loss as per Ind AS. Further, Indian GAAP profit or loss is reconciled to total comprehensive income as per Ind AS.

44. Goodwill amortization

Based on the business combination exemption availed by the Company on the transition date, the Indian GAAP carrying amount of goodwill has been used in the opening Ind AS balance sheet. Under Ind-AS, goodwill is only tested for impairment annually and not amortized. Accordingly, the goodwill amortized in Indian GAAP for the year ended March 31, 2016 has been reversed.

45. Loans (Deposits)

Under Indian GAAP, deposits given under lease are recorded at transaction value, whereas under Ind AS, these are financial assets to be measured at amortized cost at the effective interest rate and the difference is recognized as deferred lease asset. The carrying amount of the asset increases in each period to reflect the passage of time which is recognized as interest income. The carrying amount of the deferred lease asset reduces in each period by way of transfer to lease expense on a straight-line basis over the contract period. This led to a decrease in asset on the date of transition and increase in deferred lease asset.

46. Statement of cash flows

The transition from Indian GAAP to Ind AS has not had a material impact on the statement of cash flows.

47. Previous GAAP figures have been reclassified / regrouped wherever necessary to confirm with financial statements prepared under IND AS.

48. Recent accounting pronouncements

In March 2017, the Ministry of Corporate Affairs issued the Companies (Indian Accounting Standards) (Amendments) Rules, 2017, notifying amendments to Ind AS 7, ''Statement of cash flows'' and Ind AS 102, ''Share-based payment.'' The amendments are applicable to the Company from April 1, 2017.

49. Amendment to Ind AS 7:

The amendment to Ind AS 7 requires the entities to provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes, suggesting inclusion of a reconciliation between the opening and closing balances in the balance sheet for liabilities arising from financing activities, to meet the disclosure requirement. The Company is evaluating the requirements of the amendment and the effect on the financial statements.

50. Amendment to Ind AS 102:

The amendment to Ind AS 102 provides specific guidance to measurement of cash-settled awards, modification of cash-settled awards and awards that include a net settlement feature in respect of tax deductible at source. The Company does not have any cash settled award as at March 31,2017.


Mar 31, 2016

NOTE 1 - BACKGROUND

Jyothy Laboratories Limited (''the Company'') is a public company domiciled in India. Its shares are listed on two stock exchanges in India. The Company is principally engaged in manufacturing and marketing of fabric whiteners, soaps, detergents, mosquito repellents, scrubber, bodycare and incense sticks.

NOTE 2 - BASIS OF PREPARATION

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules 2014. The financial statements have been prepared under the historical cost convention on an accrual basis except in case of assets which has been recorded on fair value and assets for which provision for impairment is made. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

NOTE 3 - SEGMENT REPORTING

Information about Business Segments

Business segments:

The primary segment of the Company has been determined on the basis of business segment. The Company is organized into following business segments - Soaps and Detergents, Home Care and others. Segments have been identified taking into account the nature of the products, the differing risks and returns, the organization structure and the internal reporting system.

Soaps and Detergents includes fabric whiteners, fabric detergents, dish wash bar and soaps including ayurvedic soaps. Home Care products include incense sticks, scrubber, dhoop and mosquito repellents. Others includes bodycare,tea and coffee.

Secondary segment:

The Company mainly caters to the needs of the domestic market. The export turnover is not significant in the context of total turnover. As such, there is only one reportable geographical segment.

Segment revenue and result:

The income/ expense that are not directly attributable to the business segments are shown as unallocated corporate costs.

Segment assets and liabilities:

Segment assets include all operating assets used by a segment and consist principally of debtors, inventories, advances and fixed assets. Assets at corporate level are not allocable to segments on a reasonable basis and thus the same have not been allocated. Segment liabilities include all operating liabilities and consist principally of creditors and accrued liability.

NOTE 4 - RELATED PARTY DISCLOSURES

a) Parties where control exists Individual having control

M.P. Ramachandran Chairman and Managing Director

As the Managing Director of the Company is an individual having control and hence not separately disclosed as a Key management personnel.

Wholly Owned Subsidiaries

Jyothy Consumer Products Marketing Limited

Other Subsidiaries

Jyothy Kallol Bangladesh Limited Four Seasons Drycleaning Company Private Limited Snoways Laundrers & Drycleaners Private Limited Jyothy Fabricare Services Limited

b) Related party relationships where transactions have taken place during the year Partnership firm

M/S JFSL-JLL (JV)

Firm / HUF in which the relatives of individual having control are partners / members / proprietor

Quilon Trading Co. M.P. Divakaran - H.U.F. M.P. Sidharthan - H.U.F.

Relative of individual having control

M.P. Sidharthan

M.R. Jyothy

M.R. Deepthi

Ananth Rao T

Ravi Razdan

M.P. Divakaran

Enterprises significantly influenced by key management personnel or their relatives

Sahyadri Agencies Ltd.

Key management personnel

K. Ullas Kamath Joint Managing Director & CFO

S.Raghunandan Whole Time Director & CEO

Additional related party as per Companies Act, 2013.

M.L. Bansal Company Secretary

NOTE 5 - CONTINGENT LIABILITIES

2016 2015

Based on management''s evaluation following contingent liabilities is not probable and hence not provided by the Company in respect of:

(i) Amount outstanding in respect of corporate guarantees 4,902.44 5,077.44

(ii) Tax matters

(a) Disputed sales tax demands-matters under appeal 1,870.13 1,843.20

(b) Disputed excise duty and service tax demand - matter under appeal 3,864.18 2,963.75

(c) Disputed income tax demand - matter under appeal * 6,733.15 3,741.60

(iii) Other statutory dues 3.83 7.72

* The amount shown above does not include contingent liability for assessment years which have been reopened (unless demand order is raised) and those pending assessments.

NOTE 6 - EMPLOYEE STOCK OPTION PLANS (''ESOP'') (contd.)

For option excercised during the period, the weighted average share price at the exercise date was X 297.44 per share (2015 - not applicable since no option were exercised).

No new stock option have been granted by the company in the current year.

The Black Scholes valuation model has been used for computing the weighted average fair value of the stock granted considering the following inputs for the year ended March 31, 2016 and March 31, 2015:-

NOTE - 7

As per the Notification no. 32/99-CE dated July 8,1999, the Company was entitled to refund of excise duty in Guwahati and Jammu units equivalent to 100% of the amount of the duty paid through Personal Ledger Account (''PLA''). During an earlier year, the Government issued notifications no. 17/2008-CE and 19/2008-CE dated March 27, 2008 restricting the refund amount to a maximum percentage specified in the notification. The Company has received a favourable order from the High Court of Guwahati & Jammu and Kashmir in earlier years. Accordingly, the Company has accrued an additional benefit of X 940.48 (2015 - X 907.06) in the current year.

NOTE - 8

At its meeting held on May 23, 2016 the Board of Directors have approved the scheme of amalgamation of Jyothy Consumer Products Marketing Limited (wholly owned subsidiary) with the Company on May 23, 2016. The appointed date under the scheme will be April 1, 2016.

NOTE 9

The Company has entered into an option agreement dated May 5, 2011 with Henkel AG & Co. KGaA (Henkel AG) whereby the Company has granted Henkel AG a firm and irrevocable option, at its sole discretion at any time after the beginning of the fifth year and ending upon the expiry of the sixth year of the said agreement or such other mutually extended period, to acquire a maximum of 26% of the issued equity share capital of the Company at a price which will be mutually determined by the parties at a later date.

NOTE 10 - EXCEPTIONAL ITEM

Exceptional item relates additional payment towards retrenchment of employees for the Kandanassery unit in previous year.

NOTE 11 - PREVIOUS YEAR FIGURES

Previous year figures have been regrouped / reclassified , where necessary, to conform to this year classification.


Mar 31, 2014

NOTE : 1 EMPLOYEE BENEFIT

(i) Defined Benefit Plans -

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with Life Insurance Corporation of India.

The following tables summarises the components of net benefit expense recognised in the statement of Profit and loss and the funded status and amounts recognised in the balance sheet for the respective plans.

NOTE : 2 SEGMENT REPORTING

Business segments:

The primary segment of the Company has been determined on the basis of business segment. The Company is organized into following business segments - Soaps and Detergents, Home Care and others. Segments have been identified taking into account the nature of the products, the differing risks and returns, the organization structure and the internal reporting system.

Soaps and Detergents includes fabric whiteners, fabric detergents, dish wash bar and soaps including ayurvedic soaps. Home Care products include incense sticks, scrubber, dhoop and mosquito repellents. Others includes bodycare, tea and coffee.

Secondary segment:

The Company mainly caters to the needs of the domestic market. The export turnover is not significant in the context of total turnover. As such, there is only one reportable geographical segment.

Segment revenue and result:

The income/ expense that are not directly attributable to the business segments are shown as unallocated corporate costs.

Segment assets and liabilities:

Segment assets include all operating assets used by a segment and consist principally of debtors, inventories, advances and fixed assets. Assets at corporate level are not allocable to segments on a reasonable basis and thus the same have not been allocated. Segment liabilities include all operating liabilities and consist principally of creditors and accrued liability.

NOTE :3 RELATED PARTY DISCLOSURES

a) Parties where control exists Individual having control

M.P. Ramachandran Chairman and Managing Director

As the Managing Director of the Company is an individual having control and hence not separately disclosed as a Key management personnel.

Wholly Owned Subsidiaries

Associated Industries Consumer Products Pvt Ltd

Other Subsidiaries

Jyothy Kallol Bangladesh Limited

Four Seasons Drycleaning Company Private Limited

Snoways Laundrers & Drycleaners Private Limited

Jyothy Consumer Products Marketing Ltd

Jyothy Fabricare Services Limited

Diamond Fabcare Private Ltd ( Merged with Jyothy Fabricare Services Limited)

Akash Cleaners Private Limited ( Merged with Jyothy Fabricare Services Limited)

Fab Clean & Care Private Limited ( Merged with Jyothy Fabricare Services Limited)

b) Related party relationships where transactions have taken place during the year Partnership firm

M/S JFSL-JLL (JV)

Firm / HUF in which the relatives of individual having control are partners / members / proprietor

Beena Agencies

Quilon Trading Co.

Travancore Trading Corp.

Tamil Nadu Distributors

Deepthy Agencies

Sahyadri Agencies

Sreehari Stock Suppliers

Sujatha Agencies

M.P. Divakaran - H.U.F.

M.P. Sidharthan - H.U.F.

Relative of individual having control

M.P. Sidharthan

M.R. Jyothy (Director)

M.R. Deepthi

Ananth Rao T

Ravi Razdan

M. G. Santhakumari

M.P. Divakaran

Enterprises significantly influenced by key management personnel or their relatives

Sahyadri Agencies Ltd.

Key management personnel

K. Ullas Kamath Joint Managing Director

S.Raghunandan Whole Time Director & CEO

NOTE : 4 OPERATING LEASES

In case of assets taken on lease

The Company has entered into Lease agreements for premises, which expire at various dates over the next five years. Certain agreements provide for increase in rent. Lease rental expense for the year ended March 31, 2014 was Rs. 1086.78 (2013 - Rs. 930.85). There are no restrictions imposed by lease arrangements.

In case of assets given on lease

The Company has leased out few of its premises on operating lease. The Gross carrying amount and accumulated depreciation as at March 31, 2014 is Rs. 97.46 and Rs. 21.03 (2013 - Rs. 105.98 and Rs. 19.94) respectively. Lease rent income for the year ended March 31, 2014 was Rs. 74.00 (2013 – Rs. 27.91). There is no escalation clause in the lease agreement and the lease is cancellable in nature. There are no restrictions imposed by lease arrangements.

NOTE : 5 CONTINGENT LIABILITIES Rs. In Lacs

2014 2013

Based on management''s evaluation following contingent liabilities is not probable and hence not provided by the Company in respect of:

(i) Amount outstanding in respect of corporate guarantees 1,596.09 1,975.75

(ii) Tax matters

(a) Disputed sales tax demands – matters under appeal 5,685.16 6,295.13

(b) Disputed excise duty and service tax demand - matter under appeal 3,121.96 2,438.36

(c) Disputed income tax demand - matter under appeal 1,282.39 79.56

(iii) Other statutory dues 7.72 8.00

NOTE : 6

In the previous year, the Honorable High Court of Mumbai had approved the scheme of amalgamation of Jyothy Consumer Products Limited with the Company with effect from April 1, 2012.

Under the Scheme, the purchase consideration was to be discharged through issue of 23,79,748 equity shares The same has been alloted in the current year along with equivalent bonus shares. Accordingly, an amount equivalent to the face value of the shares issued (Rs. 47.60 lacs) and the excess of fair value over the face value of shares (Rs. 5,480.32 lacs) has been transferred from share suspense account to equity capital and capital reserve respectively.

NOTE : 7 MANAGERIAL REMUNERATION

During the year, the Company has received the Central Government approval for three directors in respect of managerial remuneration paid for the year ended March 31, 2013. Based on such approval, the Company has paid an additional commission of Rs. 152 lacs. The Company is yet to receive the Central Government approval for managerial remuneration paid to one director for the year ended March 31, 2013. Pending receipt of such approval, the excess remuneration paid is held in trust by the said Director.

NOTE : 8

As per the Notification no. 32/99-CE dated July 8, 1999, the Company was entitled to refund of excise duty in Guwahati and Jammu units equivalent to the amount of the duty paid through Personal Ledger Account (''PLA''). During an earlier year, the Government issued notifications no. 17/2008-CE and 19/2008-CE dated March 27, 2008 restricting the refund amount to a maximum percentage specified in the notification. The Company had fled a writ petition in the Guwahati High Court and the Jammu and Kashmir High Court against the respective notifications and obtained stay orders from both the High Courts. During the previous years, the Guwahati High Court has given a favourable order in case of a similar matter against which the Department has fled an appeal in the Supreme Court. Further, the Jammu High Court has also given favourable order. Based on the orders of High Court, the Company has accrued an additional benefit of Rs. 683.95 lacs (2013 - Rs. 438.50) in the current year.

NOTE : 9

The Company has, during the year, raised Rs. 40,000 lacs thought private placement of non-convertible debenture, redeemable at a premium after 3 years from the date of allotment i.e. November 14, 2013. The redemption premium payable of Rs. 14,720.79 lacs and expenses in relation to issue of Rs. 166.50 lacs have been adjusted to the ''Securities Premium Account'' , in accordance with section 78 of Companies Act, 1956.

NOTE : 10 The Company has entered into an option agreement dated May 5, 2011 with Henkel AG & Co. KGAA (Henkel AG) whereby the Company has granted Henkel AG a firm and irrevocable option, at its sole discretion at any time after the beginning of the fifth year and ending upon the expiry of the sixth year of the said agreement or such other mutually extended period, to acquire a maximum of 26% of the issued equity share capital of the Company at a price which will be mutually determined by the parties at a later date.

NOTE : 11 EXCEPTIONAL ITEM

Exceptional item relates to additional payment towards retrenchment of employees on closure of the Bhubaneshwar and Chennai manufacturing unit.

NOTE : 12 PREVIOUS YEAR FIGURES

Previous year figures have been regrouped / reclassified, where necessary, to conform to this year''s classification.


Mar 31, 2013

Note 1 BACKGROUND

Jyothy Laboratories Limited (''the Company'') is public company incorporated on January 15, 1992 under the provisions of the Companies Act, 1956. The Company is principally engaged in manufacturing and marketing of fabric whiteners, soaps, detergents, mosquito repellents, scrubber, bodycare and incense sticks.

Note 2 BASIS OF PREPARATION

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention on an accrual basis except in case of assets which has been recorded on fair value and assets for which provision for impairment is made. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

Note 3 EMPLOYEE BENEFIT

(i) Defined Benefit Plans

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with Life Insurance Corporation of India.

The following tables summarises the components of net benefit expense recognised in the statement of profit and loss and the funded status and amounts recognised in the balance sheet for the respective plans.

Note 4 SEGMENT REPORTING

Business segments:

The primary segment of the Company has been determined on the basis of business segment. The Company is organized into following business segments - Soaps and Detergents, Home Care and others. Segments have been identified taking into account the nature of the products, the differing risks and returns, the organization structure and the internal reporting system.

Soaps and Detergents includes fabric whiteners, fabric detergents, dish wash bar and soaps including ayurvedic soaps. Home Care products include incense sticks, scrubber, dhoop and mosquito repellents. Others includes bodycare, tea and coffee.

Secondary segment:

The Company mainly caters to the needs of the domestic market. The export turnover is not significant in the context of total turnover. As such, there is only one reportable geographical segment.

Segment revenue and result:

The income/ expense that are not directly attributable to the business segments are shown as unallocated corporate costs.

Segment assets and liabilities:

Segment assets include all operating assets used by a segment and consist principally of debtors, inventories, advances and fixed assets. Assets at corporate level are not allocable to segments on a reasonable basis and thus the same have not been allocated.

Segment liabilities include all operating liabilities and consist principally of creditors and accrued liability.

Note 5 [RELATED PARTY DISCLOSURES

a) Parties where control exists Individual having control

M.P. Ramachandran Chairman and Managing Director

As the Managing Director of the Company is an individual having control and hence not separately disclosed as a Key management personnel.

Wholly Owned Subsidiaries

Associated Industries Consumer Products Pvt Ltd

Other Subsidiaries

Jyothy Fabricare Services Limited Jyothy Kallol Bangladesh Limited

Jyothy Consumer Products Ltd (Formerly know as Henkel India Limited) upto March 31, 2012, now merged with Jyothy

Laboratories Limited w.e.f. April 1,2012.

Jyothy Consumer Products Marketing Ltd.

(Formerly know as Henkel Marketing India Limited) w.e.f August 23, 2011

Diamond Fabcare Private Ltd w.e.f April 1, 2011

Akash Cleaners Private Limited w.e.f April 1, 2011

Four Seasons Drycleaning Company Private Limited w.e.f. February 15, 2012

Fab Clean & Care Private Limited w.e.f June 1, 2011 Snoways Laundrers & Drycleaners Private Limited

b) Related party relationships where transactions have taken place during the year Partnership firm

M/S JFSL-JLL (JV)

Firm / HUF in which the relatives of individual having control are partners / members / proprietor.

Beena Agencies Quilon Trading Co.

Travancore Trading Corp.

Sree Guruvayurappan Agencies M.P. Agencies Tamil Nadu Distributors Deepthy Agencies Sahyadri Agencies Sreehari Stock Suppliers Sujatha Agencies M.P. Divakaran - H.U.F.

M.P. Sidharthan - H.U.F.

Relative of individual having control

M.P. Sidharthan M.R. Jyothy (Director)

M.R. Deepthi Ananth Rao T Ravi Razdan M. G. Santhakumari M.P. Divakaran

Enterprises significantly influenced by key management personnel or their relatives

Sahyadri Agencies Ltd.

Key management personnel

K. Ullas Kamath Joint Managing Director

S.Raghunandan Whole Time Director & CEO

Note 6 OPERATING LEASES

In case of assets taken on lease

The Company has entered into Lease agreements for premises, which expire at various dates over the next five years. Certain agreements provide for increase in rent. Lease rental expense for the year ended March 31, 2013 was Rs. 930.85 (2012 - Rs. 511.90). There are no restrictions imposed by lease arrangements.

In case of assets given on lease

The Company has leased out few of its premises on operating lease. The Gross carrying amount and accumulated depreciation as at March 31, 2013 is Rs. 105.98 and Rs. 19.94 (2012 - Rs. 147.98 and Rs. 21.27) respectively. Lease rent income for the year ended March 31, 2013 was Rs. 27.91 (2012 - Rs. 6.93). There is no escalation clause in the lease agreement and the lease is cancellable in nature. There are no restrictions imposed by lease arrangements.

Note 7 CONTINGENT LIABILITIES

2013 2012

Contingent liabilities not probable and hence not provided by the Company in respect of:

(i) Amount outstanding in respect of corporate guarantees 1,975.75 1,301.35

(ii) Tax matters

(a) Disputed sales tax demands - matters under appeal 6,295.13 3,274.03

(b) Disputed excise duty and service tax demand - matter under appeal 2,438.36 1,867.85

(c) Disputed income tax demands - matters under appeal 79.56 -

(iii) Other statutory dues 8.00 20.11

(iv) Claims against the Company not acknowledged as debt - 120.00

Note 8

The Honorable High Court of Mumbai, on April 12, 2013, approved the scheme of amalgamation (the scheme) under sections 391 to 394 of the Companies Act, 1956. In accordance with the scheme, Jyothy Consumer Products Limited (transferor Company) merged with the Company with effect from 1 April 2012. The transferor Company was engaged in the business of manufacturing and sale of body care, soap and detergent. The amalgamation is expected to channelize synergies and lead to better utilization of available resources and result in greater economies of scale.

The salient features of the scheme is as given below:-

a. The Company has accounted for the amalgamation under the purchase method and recognised assets and liabilities acquired at fair value.

b. The investments held by the Company in the Transferor Company has been cancelled.

c. The inter-corporate investments and inter-corporate deposits / loans and advances outstanding between the Company and the Transferor Company has been cancelled.

d. The excess of the purchase consideration paid by the Company over the value of net assets of the Transferor Company and after giving effect to point b) and c) above has been treated as goodwill.

Goodwill arising above has been amortised over a period of 10 years from the date of amalgamation as management believes that benefits due to acquisition in form of distribution synergies, economies of scale, overheads optimisation and brand category expansion shall be available for at least 10 years.

The purchase consideration is to be discharged through issue of 23,79,748 equity shares. Pending such allotment, the fair value of the consideration of Rs. 5,504.12 lacs has been shown under ''Share capital suspense account'' in the balance sheet. Further, the shareholders of the transferor Company are also entitled to equivalent number of bonus shares. Accordingly, an amount of Rs. 23.80 lacs has been utilised from securities premium and disclosed under ''Share capital suspense account''.

Note 10 MANAGERIAL REMUNERATION

Employee benefit expenses include Rs. 1,113.72 lacs paid / payable during the year towards remuneration payable to its Whole Time Directors. The maximum remuneration payable under Para (1) (B) of Section II of Part II of Schedule XIII of the Companies Act, 1956 (''Act'') is Rs. 192 lacs. Based on the legal advice received by the Company, management has computed the maximum remuneration payable to its Whole Time Directors amounting to Rs. 1,025 lacs.

The Company has filed an application with the Central government and is in the process of obtaining necessary approval from shareholders for remuneration payable to its Whole Time Directors. Pending receipt of such approval, the excess remuneration paid to the Directors is held in trust by the said Directors.

Note 11

As per the Notification no. 32/99-CE dated July 8, 1999, the Company was entitled to refund of excise duty in Guwahati and Jammu units equivalent to the amount of the duty paid through Personal Ledger Account (''PLA''). During an earlier year, the Government issued notifications no. 17/2008-CE and 19/2008-CE dated March 27, 2008 restricting the refund amount to a maximum percentage specified in the notification. The Company had filed a writ petition in the Guwahati High Court and the Jammu and Kashmir High Court against the respective notifications and obtained stay orders from both the High Courts. During the previous years, the Guwahati High Court has given a favourable order in case of a similar matter against which the Department has filed an appeal in the Supreme Court. Further, the Jammu High Court has also given favourable order. Based on the orders of High Court, the Company has accrued an additional benefit of Rs. 438.50 lacs (2012 - Rs. 186.54) in the current year.

Note 12

In the previous year, the Company has entered into an option agreement dated May 5, 2011 with Henkel AG & Co. KGaA (Henkel AG) whereby the Company has granted Henkel AG a firm and irrevocable option, at its sole discretion at any time after the beginning of the fifth year and ending upon the expiry of the sixth year of the said agreement or such other mutually extended period, to acquire a maximum of 26% of the issued equity share capital of the Company at a price which will be mutually determined by the parties at a later date.

Note 13 PREVIOUS YEAR FIGURES

Previous year figures have been regrouped / reclassified , where necessary, to conform to this year classification.


Mar 31, 2012

Note 1 BACKGROUND

Jyothy Laboratories Limited ('the Company') is public company incorporated on January 15, 1992 under the provisions of the Companies Act, 1956. The Company is principally engaged in manufacturing and marketing of fabric whiteners, soaps, detergents, mosquito repellents, scrubber, and incense sticks.

Note 2 BASIS OF PREPARATION

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention on an accrual basis except in case of assets for which provision for impairment is made. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year, except for the change in accounting policy explained below.

a. Terms/rights attached to equity shares

The Company has only one class of equity shares having par value of 1 Rs per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended March 31, 2012, the amount of per share dividend recognized as distributions to equity shareholders was Rs 2.50 (2011: Rs 5). In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

Details of loan

a) Term Loan has been taken from Axis Bank during the financial year 2011-12 and carries interest @ 11.25% p.a payable monthly. Interest rate is fixed for period of one year and floating thereafter. Term loan to be repaid in 16 quarterly instalment starting from June 30, 2013. The term loan is secured against first charge on the immovable properties at Andheri, trade marks of Maxo and Exo, all the rights, title, interest, benefits, claims and demands of the Company in respect of all document, agreements, contracts, clearance, insurance contract entered both present and future and all rights, claims and benefits to all monies receivable thereunder and all other claims thereunder which description shall include all properties of the above whether presently in existence or acquired hereafter and second charge on all the inventories, current assets, all monies, securities, contractor guarantees, performance bonds, cash flows and receviables, revenues, bank accounts together with investment, fixed deposits and book debts, stock in trade and all the properties mentioned above.

b) Deferred sales tax loan is interest free and payable in financial year 2012-13 in one installment.

Note 3 [EMPLOYEE BENEFIT

(i) Defined Benefit Plans -

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with Life Insurance Corporation of India.

The following tables summarises the components of net benefit expense recognised in the statement of profit and loss and the funded status and amounts recognised in the balance sheet for the respective plans.

(H) The Company expects to contribute Rs Nil (2011 - Rs 78.08) to gratuity fund and Rs 37.03 (2011 - Rs 32.77) to Superannuation fund.

(ii) Defined Contribution Plans -

Amount of Rs 553.63 (2011 - Rs 510.99) is recognised as an expense and included in Note 25 - "Contribution to provident and other funds" in the Statement of profit and loss.

Note 4 SEGMENT REPORTING Business segments:

The primary segment of the Company has been determined on the basis of business segment. The Company is organized into following business segments - Soaps and Detergents, Home Care and others. Segments have been identified taking into account the nature of the products, the differing risks and returns, the organization structure and the internal reporting system.

Soaps and Detergents includes fabric whiteners, fabric detergents, dish wash bar and soaps including ayurvedic soaps. Home Care products include incense sticks, scrubber, dhoop and mosquito repellents. Others includes tea and coffee.

Secondary segment:

The Company mainly caters to the needs of the domestic market. The export turnover is not significant in the context of total turnover. As such, there is only one reportable geographical segments.

Segment revenue and result:

The income/expense that are not directly attributable to the business segments are shown as unallocated corporate costs.

Segment assets and liabilities:

Segment assets include all operating assets used by a segment and consist principally of debtors, inventories, advances and fixed assets. Assets at corporate level are not allocable to segments on a reasonable basis and thus the same have not been allocated.

Segment liabilities include all operating liabilities and consist principally of creditors and accrued liability.

Note 5 OPERATING LEASES In case of assets taken on lease

The Company has entered into Lease agreements for premises, which expire at various dates over the next five years. Certain agreements provide for increase in rent. Lease rental expense for the year ended March 31, 2012 was Rs 511.90 (2011 - Rs 489.48). There are no restrictions imposed by lease arrangements. There are no subleases.

In case of assets given on lease

The Company has leased out few of its premises on operating lease. The Gross carrying amount and accumulated depreciation as at March 31, 2012 is Rs 147.98 and Rs 21.27 (2011 - Rs 139.46 and Rs 15.92) respectively. Lease rent income for the year ended March 31, 2012 was Rs 6.93 (2011 - Rs 5.8). There is no escalation clause in the lease agreement and the lease is cancellable in nature. There are no restrictions imposed by lease arrangements.

Note 6

As per the Notification No. 32/99-CE dated July 8, 1999, the Company was entitled to refund of excise duty in Guwahati and Jammu units equivalent to the amount of the duty paid through Personal Ledger Account ('PLA'). During an earlier year, the Government issued notifications No. 17/2008-CE and 19/2008-CE dated March 27, 2008 restricting the refund amount to a maximum percentage specified in the notification. The Company had filed a writ petition in the Guwahati High Court and the Jammu and Kashmir High Court against the respective notifications and obtained stay orders from both the High Courts. During the previous years, the Guwahati High Court has given a favourable order in case of a similar matter against which the Department has filed an appeal in the Supreme Court. Further, during the previous year, the Jammu High Court has also given favourable order. Based on the orders of High Court, the Company has accrued Rs Nil (2011 - Rs 953.84) lacs as excise duty receivable pertaining to the earlier years (of which an amount of Rs Nil (2011 - Rs 478.58) Lacs adjusted from the material consumed) and an additional benefit of Rs 186.54 (2011 - Rs 413.21) Lacs accrued in the current year, of which an amount of Rs Nil (2011 - Rs 189.68) Lacs pertains to previous year.

Note 7

During the previous year, the Company had issued 8,063,200 shares of Rs 1 each to Qualified Institutional Buyers (QIBs) in terms of Chapter VIII of SEBI (ICDR) Regulations, 2009 at a premium of Rs 281.62 to generate funds for primarily for acquisition in the future and to expand inorganically by identifying acquisition opportunities as part of Company's growth strategy in India and, if required, for general corporate purposes as well. The total sum received aggregated to Rs 22,788.22 lacs (including Rs 22,707.58 Lacs towards Securities premium). In the current year, the Company has utilised the above money for the acquisition of Henkel India Limited.

Note 8

In the current year, Company has entered into a share purchase agreement with Henkel AG & Co. KGaA (Henkel AG) for acquiring 50.97% equity share capital and 100% preference share capital in Henkel India Limited. In accordance with Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations 1997, the Company had made a public announcement on May 9, 2011, to acquire 20% of the emerging voting capital of Henkel India Limited from the public at an offer price of Rs 41.20 per equity share.

The Company has completed the open offer formalities and acquired 14,035,431 equity shares from the shareholders of Henkel India Limited. Consequent to the completion of the open offer, the equity holding of the Company in Henkel India Limited as at March 31, 2012 is 83.65% and investment is treated as investment in subsidiary. Further, the Company has also entered into an option agreement dated May 5, 2011 whereby the Company has granted Henkel AG a firm and irrevocable option, at its sole discretion at any time after the beginning of the fifth year and ending upon the expiry of the sixth year of the said agreement or such other mutually extended period, to acquire a maximum of 26% of the issued equity share capital of the Company at a price which will be mutually determined by the parties at a later date.

Note 9 PREVIOUS YEAR FIGURES

Till the year ended March 31, 2011, the Company was using pre-revised Schedule VI to the Companies Act, 1956, for preparation and presentation of its financial statements. During the year ended March 31, 2012, the revised Schedule VI notified under the Companies Act, 1956, has become applicable to the Company. The Company has reclassified previous year figures to conform to this year's classification.


Mar 31, 2011

1. Background

Jyothy Laboratories Limited ('the Company') was incorporated on January 15, 1992. The Company is principally engaged in manufacturing and marketing of fabric whiteners, soaps, detergents, mosquito repellents, scrubber and incense sticks.

2. (A) Basis of preparation of Financial Statements

The financial statements have been prepared to comply in all material respects with the Notified accounting standard by Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention on an accrual basis except in case of assets for which provision for impairment is made. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

(B) Use of Estimate

The preparation of financial statements, in conformity with generally accepted accounting principles, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the results of operations during the year end. Although these estimates are based upon management's best knowledge of current events and actions, actual results could differ from these estimates.

4. Employee Benefit:

(i) Defined Benefit Plans -

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with an insurance company. The Company has provided for gratuity and leave encashment based on actuarial valuation done as per Projected Unit Credit Method.

(iii) Defined Contribution Plans -

Amount of Rs. 510.99 (2010 - Rs. 408.47) is recognised as an expense and included in Schedule 16 - "Contribution to provident and other funds" in the Profit and Loss account.

(iv) The Company expects to contribute Rs. 78.08 (2010 - Rs. 213.57) to gratuity fund and Rs. 32.77 (2010 - Rs. 28.06) to Superannuation fund.

5. Scheme of Amalgamation ('the Scheme') of Sri Sai Homecare Products Private Limited, a wholly owned subsidiary, with Jyothy Laboratories Limited (the Company)

a) Pursuant to a Scheme of Amalgamation under the provisions of Sections 391 to 394 of the Companies Act, 1956 approved by the shareholders of Sri Sai Homecare Products Private Limited and the Company, and subsequently sanctioned by the Honourable High Court at Mumbai, the entire business undertaking, assets and liabilities of Sri Sai Homecare Products Private Limited have been transferred to and vested in the Company with effect from April 1, 2010 being the 'Appointed Date'.

b) Sri Sai Homecare Products Private Limited was in the business of manufacturing of mosquito repellent coil.

c) The Amalgamation has been accounted for under the "pooling of interest" method of accounting prescribed under Accounting Standard - 14 (Accounting for amalgamation) issued by the Institute of Chartered Accountants of India which was prescribed by the Scheme. Accordingly all the assets, liabilities and reserves of Sri Sai Homecare Products Private Limited as on April 1, 2010 have been aggregated at their book value as specified in the Scheme. Further, the share capital of Sri Sai Homecare Products Private Limited has been extinguished and the excess of the value of share capital, taken over pursuant to the Scheme, over the investment of the Company in Sri Sai Homecare Products Private Limited have been adjusted to the capital reserve account.

d) Since the aforesaid Scheme of amalgamation of Sri Sai Homecare Products Private Limited with the Company, which is effective from April 1, 2010, has been given effect to in these accounts, the figures for the current year to that extent are not comparable with those of the previous year.

E) There are no delays in payments to Micro, Small and Medium Enterprises in current year as well as in previous year as required to be disclosed under Micro, Small and Medium Enterprises Development Act, 2006.

The above information and the details given in Schedule 11 - Current liabilities as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the Auditors.

7. Segment Reporting

Business segments:

The primary segment of the Company has been determined on the basis of business segment. The Company is organized into two business segments - Soaps and Detergents and Home Care. Segments have been identified taking into account the nature of the products, the differing risks and returns, the organization structure and the internal reporting system.

Soaps and Detergents includes fabric whiteners, fabric detergents, dish wash bar and soaps including ayurvedic soaps. Home Care products include incense sticks, scrubber, dhoop and mosquito repellents. Others includes Tea and coffee.

Secondary segment:

The Company mainly caters to the needs of the domestic market. The export turnover is not significant in the context of total turnover. As such, there is only one reportable geographical segments.

Segment revenue and result:

The income/expense that are not directly attributable to the business segments are shown as unallocated corporate costs.

Segment assets and liabilities:

Segment assets include all operating assets used by a segment and consist principally of debtors, inventories, advances and fixed assets. Assets at corporate level are not allocable to segments on a reasonable basis and thus the same have not been allocated.

Segment liabilities include all operating liabilities and consist principally of creditors and accrued liability.

8. Related Party Disclosures

a) Parties where control exists Individual having control

M.P. Ramachandran Chairman and Managing Director As the Managing Director of the Company is an individual having control and hence not separately disclosed as a Key management personnel.

Wholly Owned Subsidiaries

Sri Sai Home Care Products Private Limited (refer Note 5 of Schedule 20) Associated Industries Consumer Products Pvt. Ltd.

Other Subsidiary

Jyothy Fabricare Services Limited

Jyothy Kallol Bangladesh Limited (w.e.f. October 14, 2010) (refer Note 14 of Schedule 20)

b) Related party relationships where transactions have taken place during the year

Joint venture companies

Balaji Teleproducts Limited (upto February 24, 2010)

Firm/HUF in which the relatives of individual having control are partners/members/proprietor.

Beena Agencies Quilon Trading Co. Travancore Trading Corp. Sree Guruvayurappan Agencies M.P. Agencies Tamil Nadu Distributors Deepthy Agencies Sahyadri Agencies Sreehari Stock Suppliers Sujatha Agencies M.P. Divakaran - H.U.F. M.P. Sidharthan - H.U.F.

Relative of individual having control

M.P. Sidharthan M.R. Jyothy (Director) M.R. Deepthi Ananth Rao T. Ravi Razdan M. G. Santhakumari M.P. Divakaran

Enterprises significantly influenced by key management personnel or their relatives Sahyadri Agencies Ltd.

Key management personnel (includes directors of the Company)

K. Ullas Kamath Deputy Managing Director

10. Contingent Liabilities

2010-11 2009-10

Contingent liabilities not provided for in respect of:

(i) Amount outstanding in respect of guarantees given by the Company to banks 1,122.96 1,389.90

(ii) Tax matters

(a) Disputed sales tax demands – matters under appeal 2,290.92 1,443.20

(b) Disputed excise duty and service tax demand – matter under appeal 1,592.72 1,050.57

(iii) Others 20.11 15.83

(iv) Claims against the Company not acknowledged as debt 120.00 120.00

12. As per the Notification No. 32/99-CE dated July 8, 1999, the Company was entitled to refund of excise duty in Guwahati and Jammu units equivalent to the amount of the duty paid through Personal Ledger Account ('PLA'). During an earlier year, the Government issued notifications No. 17/2008-CE and 19/2008-CE dated March 27, 2008 restricting the refund amount to a maximum percentage specified in the notification. The Company had filed a writ petition in the Guwahati High Court and the Jammu and Kashmir High Court against the respective notifications and obtained stay orders from both the High Courts. During the previous year, the Guwahati High Court has given a favourable order in case of a similar matter against which the Department has filed an appeal in the Supreme Court. Further, during the current year, the Jammu High Court has also given favourable order. Based on the orders of High Court, the Company has accrued Rs. 953.84 Lacs as excise duty receivable pertaining to the earlier years (of which an amount of Rs. 478.58 Lacs adjusted from the material consumed) and an additional benefit of Rs. 413.21 Lacs accrued in the current year, of which an amount of Rs. 189.68 pertaining to previous year.

14. During the current year the Company has entered in to a joint venture with Kallol Bangladesh Limited. The same has been named as Jyothy Kallol Bangladesh Limited in which the Company has subscribed 75% equity share capital leading to the Company's percentage of ownership interest in the joint venture at 75% as at the year end.

15. During the year, the Company has issued 8,063,200 shares of Rs. 1 each to Qualified Institutional Buyers (QIBs) in terms of Chapter VIII of SEBI (ICDR) Regulations, 2009 at a premium of Rs. 281.62 to generate funds for primarily for acquisition in the future and to expand inorganically by identifying acquisition opportunities as part of Company's growth strategy in India and, if required, for general corporate purposes as well. The total sum received aggregated to Rs. 22,788.22 Lacs (including Rs. 22,707.58 Lacs towards Securities premium). After investment in Henkel India Limited of Rs. 6,073.09 Lacs and share issue expenses of Rs. 644.29 Lacs pending utilization of the money for the purposes mentioned above, the Company has temporarily invested in the fixed deposit and corporate deposits with the Banks.

16. During the earlier years, depreciation/ impairment on assets include impairment losses representing the amount by which the carrying amount of the asset exceeds its recoverable amount. Such impairment losses were due to adverse market conditions for two of its Cash Generating Unit pertaining to the 'Soaps and Detergents' segment. The pre-discount rate used for evaluation of the present value was 8% per annum. In the current year the Company sold a portion of the land at Pithampur washing powder unit to a third party at a rate much higher than the carrying amount. In view of prevailing market price of land at Pithampur, management believes that impairment indicators no longer exist, therefore impaiment loss earlier recognised on land & building should be reversed. Accordingly, the Company has reversed the provision for impairment loss for land of Rs. 10.37 Lacs and building of Rs. 143.35 Lacs at Pithampur washing powder unit which pertains to 'Soaps & Detergent segment'.

17. During the year, the Company acquired 14.9% equity share capital in Henkel India Limited. Further subsequent to the year end, the Company has entered in to a share purchase agreement with Henkel AG & Co. KGaA (Henkel AG) for acquiring 50.97% equity share capital and 100 % preference share capital in the Henkel India Limited. In addition, the Company made pubic announcement of its intention to make open offer for acquiring upto 20% of the equity share capital in Henkel India Limited from public at Rs. 41.20 per equity share.

18. During the year 7,500,000 0.1% Convertible Preference Shares in Jyothy Fabricare Services Limited of Rs. 10 along with redemption premium of Rs. 2 each share were converted into 6,000,000 Equity Shares (face value - Rs. 10 each) at Rs. 15 each.

19. There are no amounts payable/due to Investor Education and Protection Fund.

20. The prior period figures have been reclassified where necessary to conform with current year's presentation.


Mar 31, 2010

1. Background

Jyothy Laboratories Limited (the Company) was incorporated on January 15, 1992. The Company is principally engaged in manufacturing and marketing of fabric whiteners, soaps, detergents, mosquito coils and incense sticks.

2. Basis of preparation of Financial Statements

The financial statements have been prepared to comply in all material respects with the Notified accounting standard by Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention on an accrual basis except in case of assets for which provision for impairment is made. The accounting policies have been consistently applied by the Company are consistent with those used in the previous year.

3. Employee Benefit:

(i) Defined Benefit Plans -

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with an insurance company. The Company has provided for gratuity and leave encashment based on actuarial valuation done as per Projected Unit Credit Method.

The following tables summarise the components of net benefit expense recognised in the profit and loss account and the funded status and amounts recognised in the balance sheet for the respective plans.

(ii) Defined Contribution Plans -

Amount of Rs. 408.47 (2009 - Rs. 283.98) is recognised as an expense and included in schedule 16 - "Contribution to provident and other funds" in the Profit and Loss account.

(iii) The Company expects to contribute Rs. 213.57 to gratuity fund in 2010-11 and Rs. 28.06 to Superannuation fund in 2010-11.

E) There are no delays in payments to Micro, Small and Medium Enterprises as required to be disclosed under Micro, Small and Medium Enterprises Development Act, 2006.

The above information and the details given in Schedule 11 - “Current liabilities” as required to be disclosed under the Micro, Smal and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the Auditors.

4. SEGMENT REPORTING

Business segments:

The primary segment of the Company has been determined on the basis of business segment. The Company is organized into two business segments - Soaps and Detergents and Home Care. Segments have been identified taking into account the nature of the products, the differing risks and returns, the organization structure and the internal reporting system.

Soaps and Detergents include fabric whiteners, fabric detergents, dishwash bar and soaps including ayurvedic soaps. Home Care products include incense sticks, dhoop and mosquito coils, scrubber. Others include Tea and coffee.

Secondary segment:

The Company mainly caters to the needs of the domestic market. The export turnover is not significant in the context of total turnover. As such, there is only one reportable geographical segment.

Segment revenue and result:

The income/expense that are not directly attributable to the business segments are shown as unallocated corporate costs.

Segment assets and liabilities:

Segment assets include all operating assets used by a segment and consist principally of debtors, inventories, advances and fixed assets. Assets at corporate level are not allocable to segments on a reasonable basis and thus the same have not been allocated.

Segment liabilities include all operating liabilities and consist principally of creditors and accrued liability.

5. Contingent Liabilities

As at As at March 31, 2010 March 31, 2009 Contingent liabilities not provided for in respect of: (i) Amount outstanding in respect of guarantees given by the Company to banks 1,389.90 69.68 (ii) Tax matters (a) Disputed sales tax demands - matters under appeal 1,443.20 356.43 (b) Disputed excise duty and service tax demand - matter under appeal 1,050.57 31.56 (iii) Others 15.83 - (iv) Claims against the Company not acknowledged as debt 120.00 120.00

6. As per the Notification No. 32/99-CE dated July 8, 1999, the Company is entitled to refund of excise duty in Guwahati and Jammu units equivalent to the amount of the duty paid through Personal Ledger Account (‘PLA’). During an earlier year, the Government issued Notifications No. 17/2008-CE and 19/2008-CE dated March 27, 2008 restricting the refund amount to a maximum percentage specified in the notification. The Company has filed a writ petition in the Guwahati High Court and the Jammu and Kashmir High Court against the respective notifications and obtained stay orders from both the High Courts. During the year, the Guwahati High Court has given a favourable order in case of a similar matter against which the Department has filed an appeal in the Supreme Court. Based on the orders of High Court, the Company has accrued Rs. 475.26 lacs as excise duty receivable pertaining to the previous year and an additional benefit of Rs. 478.58 lacs for the current year.

7. During the earlier years, depreciation/impairment on assets include impairment losses representing the amount by which the carrying amount of the asset exceeds its recoverable amount. Such impairment losses were due to adverse market conditions for one of its Cash Generating Unit pertaining to the Soaps and Detergents segment. The pre-discount rate used for evaluation of the present value was 8% per annum. During the year, the Company has made an additional impairment provision of Rs. 46.28 for the cash generating unit.

8. There are no amounts payable/due to Investor Education and Protection Fund.

9. During the previous year, the Company has changed its accounting year from July-June to April-March.

Accordingly, the previous period financials are for a period of 9 months from July 01, 2008 to March 31, 2009 and the figures for the current year ended March 31, 2010 are therefore not comparable.

10. The prior period figures have been reclassified where necessary to conform with current year’s presentation.

Find IFSC