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.