NOTE 1 : General Information
 
 The Company was incorporated under the Companies Act, 1956 on March 7,
 1988 under the name of Gujarat-Godrej Innovative Chemicals Limited. The
 business and undertaking of the erstwhile Godrej Soaps Limited was
 transferred to the Company under a Scheme of Amalgamation with effect
 from April 1, 1994 and the Company''s name was changed to Godrej Soaps
 Limited. Subsequently, under a Scheme of Arrangement the Consumer
 Products division of the Company was demerged with effect from April 1,
 2001 into a separate company, Godrej Consumer Products Limited (GCPL)
 and the Vegetable Oils and Processed Foods Manufacturing business of
 Godrej Foods Limited was transferred to the Company with effect from
 June 30, 2001. The Foods division (except Wadala factory) was then sold
 to Godrej Hershey Limited, on March 31, 2006. The Company''s name was
 changed to Godrej Industries Limited on April 2, 2001.
 
 The Company is engaged in the businesses of manufacture and marketing
 of oleo-chemicals, their precursors and derivatives, bulk edible oils,
 estate management and investment activities.
 
 NOTE 2 : Contingent Liabilities
 
                                                Amount INR Crore 
 
                                          Current Year   Previous Year
 
 a) Claims against the Company not 
 acknowledged as debts:
 
 (i) Excise duty demands relating to 
 disputed classifcation, post manufacturing     9.47        11.97
 expenses, assessable values, etc. which the 
 Company has contested and is in appeal at
 various levels.
 
 (ii) Customs Duty demands relating to 
 lower charge, differential duty,               2.06         1.67
 classifcation, etc.
 
 (iii) Sales Tax demands relating to 
 purchase tax on Branch Transfer / Non         20.42        18.72
 availability of C Forms, etc at various levels.
 
 (iv) Octroi demand relating to classifcation 
 issue on import of Palm Stearine              14.05        13.12
 and interest thereon.
 
 (v) Stamp duties claimed on certain properties 
 which are under appeal by the                  1.82         1.82
 Company
 
 (vi) Income tax demands against which the 
 company has preferred appeals                 20.69        18.00
 
 (vii) Industrial relations matters 
 under appeal                                   2.08         1.91
 
 (viii) Others                                  1.31         1.31
 
 b) Guarantees :
 
 (i) Guarantees issued by banks, excluding guarantees issued in respect
 of 13.45 13.01 matters reported in 
 
 (a) above (ii) Guarantees given by the Company in respect of
 credit/guarantee limits - 7.81 sanctioned by banks to subsidiary and
 other companies.
 
 c) Other Money for which the Company is Contingently Liable.
 
 (i) Letter of credit issued by bank on behalf of the Company 4.52 0.55
 
 NOTE 3 : Employee Stock benefit Plans 1 Employee Stock Option Plans
 
 a) In December 2005, the Company had instituted an Employee Stock
 Option Plan (GIL ESOP) as approved by the Board of Directors and the
 Shareholders, for the allotment of 15,00,000 options, increased to
 90,00,000 options on split of shares convertible into 90,00,000 equity
 shares of Rs. 1 each to eligible employees of participating companies.
 
 In July 2009, the Company had instituted an Employee Stock Option Plan
 II (GIL ESOP II) as approved by the Board of Directors and the
 Shareholders, for the allotment of 90,00,000 options convertible into
 90,00,000 shares of Rs. 1 each to eligible employees of participating
 companies.
 
 NOTE 4 : Employee Stock benefit Plans (Contd.)
 
 The repayment of the loans granted to the ESOP Trust and the interest
 payable by the Trust on the said loans is dependent on the exercise of
 the options by the employees during the exercise period and / or the
 market price of the underlying equity shares of the unexercised options
 at the end of the exercise period. The fall in value of the underlying
 equity shares is on account of market volatility and the loss, if any,
 can be determined only at the end of the exercise period. In view of
 the aforesaid, provision for diminution of Rs. 11.79 crore (previous year
 Rs. 25.47 crore) is not considered necessary in the financial statements.
 
 2 Employee Stock Grant Scheme
 
 a) During the year the Company set up the Employees Stock Grant Scheme
 2011 (ESGS) pursuant to the approval by the Shareholders at their
 Meeting held on January 17, 2011.
 
 b) The ESGS Scheme is effective from April 1, 2011, (the Effective
 Date) and shall continue to be in force until (i) its termination by
 the Board or (ii) the date on which all of the shares to be vested
 under Employee Stock Grant Scheme 2011 have been vested in the Eligible
 Employees and all restrictions on such Stock Grants awarded under the
 terms of ESGS Scheme, if any, have lapsed, whichever is earlier.
 
 c) The Scheme applies to the Eligible Employees who are in whole time
 employment of the Company or its Subsidiary Company. The entitlement of
 each employee would be decided by the Compensation Committee of the
 Company based on the employee''s performance, level, grade, etc.
 
 d) The total number of Stock Grants to be awarded under the ESGS Scheme
 are restricted to 25,00,000 (Twenty Five Lac) fully paid up equity
 shares of the Company. Not more than 5,00,000 (Five Lac) fully paid up
 equity shares or 1% of the issued equity share capital at the time of
 awarding the Stock Grant, whichever is lower, can be awarded to any one
 employee in any one year.
 
 e) The Stock Grants shall vest in the Eligible Employees pursuant to
 the ESGS Scheme in the proportion of 1/3rd at the end of each year from
 the date on which the Stock Grants are awarded for a period of three
 consecutive years subject to the condition that the Eligible Employee
 continues to be in employment of the Company or the Subsidiary company
 as the case may be.
 
 f) The Eligible Employee shall exercise her / his right to acquire the
 shares vested in her / him all at one time within 1 month from the date
 on which the shares vested in her / him or such other period as may be
 determined by the Compensation Committee.
 
 g) The Exercise Price of the shares has been fxed at Rs. 1 per share. The
 intrinsic value, being the difference between market price and exercise
 price is treated as Employee Compensation Expenses and charged to the
 Statement of Profit and Loss. The value of the options is treated as a
 part of employee compensation in the financial statements and is
 amortised over the vesting period.
 
 NOTE 5 : Employee benefits
 
 a) Defned Contribution Plan Provident Fund:
 
 The contributions to the Provident Fund and Family Pension Fund are
 made to a Government administered Provident Fund and there are no
 further obligations beyond making such contribution.
 
 b) Defned benefit Plan Gratuity:
 
 The Company participates in the Employees'' Group Gratuity-cum-Life
 Assurance Scheme of ICICI Prudential, HDFC Standard Life Insurance Co.
 Ltd. and SBI Life Insurance, a funded defned benefit plan for qualifying
 employees. Gratuity is payable to all eligible employees on death or on
 separation / termination in terms of the provisions of the Payment of
 Gratuity (Amendment) Act, 1997, or as per the Company''s scheme
 whichever is more benefcial to the employees.
 
 The liability for the Defned benefit Plan is provided on the basis of a
 valuation, using the Projected Unit Credit Method, as at the Balance
 Sheet date, carried out by an independent actuary.
 
 Provident Fund:
 
 The Company manages the Provident Fund plan through a Provident Fund
 Trust for its employees which is permitted under The Employees''
 Provident Fund and Miscellaneous Provisions Act, 1952. The plan
 envisages contribution by the employer and employees and guarantees
 interest at the rate notifed by the Provident Fund authority. The
 contribution by employer and employee, together with interest, are
 payable at the time of separation from service or retirement, whichever
 is earlier.
 
 Pension:
 
 The Company has Pension plan for eligible employees. The liability for
 the Defned benefit Plan is provided on the basis of a valuation, using
 the Projected Unit Credit Method, as at the Balance Sheet date, carried
 out by an independent actuary.
 
 c) Basis Used to Determine Expected Rate of Return on Assets:
 
 The expected return on plan assets of 8.50% has been considered based
 on the current investment pattern in Government securities.
 
 d) Amounts Recognised as Expense: i) Defned Contribution Plan
 
 Employer''s Contribution to Provident Fund amounting to Rs. 0.96 crore
 (previous year Rs. 0.84 crore) has been included in Note 28 under
 Contribution to Provident Fund and Other Funds.
 
 ii) Defned benefit Plan
 
 Gratuity cost amounting to Rs. 2.51 crore (previous year Rs. 1.30 crore)
 has been included in Note 28 under
 
 Contribution to Provident and Other Funds.
 
 Employer''s Contribution to Provident Fund amounting to Rs. 3.26 crore
 (previous year Rs. 4.25 crore) has been
 
 included in Note 28 under Contribution to Provident Fund and Other
 Funds.
 
 Pension cost amounting to Rs. 0.23 crore (previous year Rs. 0.07 crore) has
 been included in Note 28 under
 
 Contribution to Provident and Other Funds.
 
 NOTE 6 : Related Party Information a) Names of Related Parties and
 Description of Relationship
 
 Parties where Control exists
 
 Godrej & Boyce Mfg. Co. Ltd., the holding company
 
 Subsidiary Companies
 
 Godrej Agrovet Ltd.
 
 Golden Feeds Products Ltd.
 
 Godrej Seeds & Genetics Ltd.
 
 Godrej Properties Ltd.
 
 Godrej Waterside Properties P. Ltd.
 
 Godrej Estate Developers P. Ltd.
 
 Godrej Developers P. Ltd.
 
 Godrej Real Estate P. Ltd.
 
 Godrej Sea View Properties P. Ltd.
 
 Godrej Nandhi Hills Project P. Ltd.
 
 Godrej Buildcon P. Ltd.
 
 Godrej Buildwell P. Ltd.
 
 Godrej Realty P. Ltd.
 
 Godrej Premium Builders P. Ltd.
 
 Godrej Garden City Properties P. Ltd.
 
 Happy Highrises Ltd.
 
 Godrej Project Development P. Ltd.
 
 Godrej Landmark Developers P. Ltd.
 
 Godrej Property Developers LLP
 
 Godrej Buildcorp LLP
 
 Mosiac Landmark LLP
 
 Natures Basket Ltd.
 
 Ensemble Holdings & Finance Ltd.
 
 Godrej International Ltd.
 
 Godrej International Trading & Investments Pte Ltd.
 
 Fellow Subsidiaries:
 
 Wadala Commodities Ltd.  Godrej (Malaysia) Sdn Bhd G & B Enterprises
 (Mauritius) P. Ltd.  Godrej (Singapore) Pte Ltd.  Godrej Infotech Ltd.
 Veromatic International BV Veromatic Services BV Water Wonder Benelux
 BV
 
 Other related parties with whom the Company had transactions during the
 year
 
 Associate / Joint Venture Companies
 
 Godrej Consumer Products Ltd.  Godrej Hershey Ltd.  Nutrine
 Confectionery Co. Ltd.  Swadeshi Detergents Ltd.  Godrej VIkhroli
 Properties LLP.
 
 Key management Personnel
 
 Mr. A.B. Godrej Chairman
 
 Mr. N.B. Godrej Managing Director
 
 Ms. T.A. Dubash Executive Director
 
 & President (Marketing) Mr. M. Eipe Executive Director
 
 & President (Chemicals)
 
 Relatives Key management Personnel
 
 Ms. P.A. Godrej Wife of Mr. A.B. Godrej
 
 Ms. N.A. Godrej Daughter of Mr. A.B. Godrej
 
 Mr. P.A. Godrej Son of Mr. A.B. Godrej
 
 Ms. R.N. Godrej Wife of Mr. N.B. Godrej
 
 Mst. B.N. Godrej Son of Mr. N.B. Godrej
 
 Mst. S.N. Godrej Son of Mr. N.B. Godrej
 
 Mst. H.N. Godrej Son of Mr. N.B. Godrej
 
 Enterprises over which Key management personnel exercise signifcant
 infuence
 
 Godrej Consumer Products Ltd.  Rapidol (Pty) Ltd.  Laboratorio Cuenca
 S.A.  Godrej Global Mideast FZE Godrej Investments P. Ltd.  Bahar
 Agrochem & Feeds P. Ltd.  Vora Soaps Ltd.  Godrej Tyson Foods Ltd.
 
 NOTE : 7
 
 The adoption of the Revised Schedule VI does not impact recognition and
 measurement principles followed for preparation of Financial Statements
 and has no signifcant impact on the presentations and disclosure made
 in the Financial Statements.
 
 All Assets and Liabilities have been classifed as current or non
 current as per the Company''s normal operating cycles and other criteria
 set out in the Revised Schedule VI to the Companies Act, 1956, which is
 applicable from the current reporting period ended March 31, 2012.
 
 NOTE : 8
 
 Figures for the previous year have been regrouped / restated wherever
 necessary to conform to current year''s presentation.