Annual Report

Value for
Many!
Jyothy Laboratories Limited | Annual Report, 2016-17
CONTENTS
About Jyothy Laboratories 02 | Value for many! 05 | From the Chairman and Managing Director’s desk
06 | Key performance indicators 08 | Joint Managing Director & Chief Financial Officer’s review 10 |
Brand promotions 13 | Product report: From the Director’s desk 14 | Consumers speak 16 | Business
competencies 20 | Management discussion and analysis 22 | Industry size and our market share at a glance
37 | CSR activities 38 | Employee engagement 39 | Corporate information 40 | Directors’ report 42 |

Secretarial audit report 60 | Report on Corporate Governance 89 | Standalone financial statements 105 |
Consolidated financial statements 169

To many, we are one of India’s most
successful homegrown FMCG companies.
To some, we are a proxy of the Indian
consumption growth story.
To others, we are a household name and
an integral component of everyday lives.
Jyothy Laboratories Limited.
One company providing ‘Value to Many’!
Jyothy Laboratories Limited.
More than just a company.
A metaphor.
A metaphor for a brand that
reinvents rules.
A metaphor for a personality
that is fundamentally Indian.
A metaphor for a local
company challenging global
brands.
A metaphor for the small
prevailing over the large.
A metaphor for a commitment
to enhance stakeholder wealth.
Anchor Vision Mission

Jyothy Laboratories Limited Our vision is to deliver Our mission is to understand
has touched millions of premium products and the often unspoken needs
Indian lives by providing quality solutions as well as of the consumers improve
‘value for many’. The building strong relationships our product formulations,
Company’s products provide with consumers. We plan to offer better solutions,
relevant solutions in line with achieve this through robust build our brands and
evolving everyday consumer research and development satisfy each customer. We
needs. This democratisation in compliance with the encourage small ideas in the
of consumption has stringent quality standards. organisation as we believe
empowered Jyothy We promise to offer the right that they have the power to
Laboratories to report products at the right price make a great impact.
sustainable growth in an according to the growing
industry marked by intense demands of all sections of
competition, innumerable consumers.
variables and unprecedented
volatility.
2 | Jyothy Laboratories Limited

Corporate Overview Statutory Reports Financial Statements
History Key product Key financial highlights,

Jyothy Laboratories began its categories and brands FY2016-17
journey in 1983 with a single • ROCE increased 1,060 basis
product – Ujala Supreme – in points to 18.7%
the fabric whitener category.
• Net sales increased 5.4% to
The product was woven around
5
Product categories H1,747.4 crore
a unique proposition. An iconic in which Jyothy
jingle ‘Aaya naya Ujala, chaar • Power Brand sales increased by
Laboratories is
boondo waala’ was created to 4.4% to `1,510 crore
present:
market this product. The message • Gross profit margins declined
to the consumer was that now Fabric care by 50 bps to 45%
spotlessly clean clothes were • Operating profit margins
Dish wash
possible by using only four drops increased by 30 bps to 14.7%
of Ujala Supreme. Over the years, Household insecticides
• Net profit increased by 176.6%
the Company invested in market Personal care
to H204.2 crore
and product research to diversify Laundry services
into various household product • Earnings per share increased by
categories such as insecticides, 175.7% to H11.2
fabric stiffeners and soap, leading
to the launch of successful Listing details
products like Ujala, Maxo and • Jyothy Laboratories is listed on
6
Exo. A turning point was reached BSE Limited and National Stock
in 2011, with the Company’s The number of Exchange of India Limited.
acquisition of a controlling stake the Company’s
in Henkel India Limited, the Power Brands: • The Company’s market
local arm of the German FMCG capitalisation increased from
giant Henkel AG & Co. This H5,240 crore (as on 31 March
business association widened the 2016) to H6,471 crore (as on 31
Company’s opportunity landscape March 2017)
as consumer business segments • An investment of H69 (after
of Jyothy Laboratories and this bonus and share split) in the
global giant were clubbed. We IPO had grown to H357.3 as
take pride in being the first major on 31 March 2017 (excluding
Indian company to take such a dividends)
leap with the backing of necessary
resources. • The promoters held 66.89% of
the Company’s equity capital (as
Plants and locations on 31 March 2017)
Jyothy Laboratories’ pan- • The face value of each Jyothy
India presence covers many equity share stands at Re. 1;
manufacturing facilities and two Revenues from these Power
the Company declared/paid
research and development centres. Brands accounted for 86.4% of the
a dividend of H6 per share for
Most of the Company’s plants are Company’s sales in FY2016-17.
FY2016-17 (H5 per share for
proximate to major consumption FY2015-16)
centres and tax-friendly zones.
Category contribution FY2016-17 FY2015-16
42.2 15.1 9.1 29.1 2.1 2.5
Household Personal Dish Laundry

Fabric care
insecticides care washes Others services
(%) (%) (%) (%) (%) (%)
41.3 16.8 8.9 28.8 1.7 2.6
Annual Report 2016-17 | 3

Value for Many!
Jyothy in the heart of India

“Jyothy, kapda aur makaan! Life mein sukoon
hai!” “Hamare ghar mein kapde ki safedi Ujala
se hi aati hai!” “Nahin, Pril hi dena. Aur kuch
nahi!” “Jyothy ne hamare dhande mein ujala
laya hai!” “Woh stand-wala macchar dani dena;
haan-haan bhai, Maxo!” “Square dishwash bar
jaldi pighal jaata hai. Par circular Exo bar toh
chalta hi jaata hai!” “Madamji, Henko isi liye
intelligent hai kyunki woh kapde ke reshon, jise
English mein lint kehte hain, usse bachaa ke
rakhta hai!” “Bahu ko laayi hoon. Dekh lo! Woh
bhi Pril hi khareedegi!” “Original neem saabun
matlab Margo. Bas!” “Aji sunte ho, ghar mein
saabun khatam ho gaya hai.” “Theek hai Margo
le aaonga!” “Fits all machines? Accha! Tab toh
Maxo A-grade liquid vaporiser bade kaam ki
cheez hai!” “Bahu raani, maine dekha hai. Exo
mein ‘Anti-Sogg’ formula hai jisse bar jaldi nahin
pighalta! Hum bhi research karte hai!” “Henko ki
dhulaai aur Ujala ki safedi. Mast hai bhai!”

FROM THE CHAIRMAN &
MANAGING DIRECTOR’S DESK
It gives me pleasure to highlight that inspite of

the FMCG sector slowdown, Jyothy Laboratories
performed reasonably well in the industry. We are
largely an ‘organic’ growth story in India’s FMCG
consumption space with limited advertisement
and marketing spending.
So what lies at the heart of Jyothy’s performance?
It is our ability to identify the everchanging needs
of consumers and devising products that address
these new desires. In turn, this has been made
possible owing to our efforts in connecting
with consumers at various levels, forums and
occasions; the ability to aggregate insights and
develop impact-driven products around a unique
need- based proposition that translates into a
consumer buy-in.
FMCG: The backbone of India’s

consumption story
The Indian FMCG industry is poised to grow at a
healthy ~20% CAGR to 2020, according to A.C.
Nielsen.
Some of the factors that we feel will make
this a reality are robust expected GDP growth,
increasing disposable incomes and growing
living standards. Besides, evolving preferences,
increased demand and expansion of product
categories could catalyse offtake.
We believe that some trends that catalyse the
sector could comprise the following:
• Smaller SKUs: to make products affordable for
even the lower income group
• Product extensions and innovations: To
enhance consumer excitement
• E-commerce: To widen purchase options and
convenience.
As a Company deeply enmeshed in India’s
consumption space, we focus on remaining ahead
of the curve, anticipating consumer needs and
turning these into valuable customer propositions.

At the heart of Jyothy Projecting the future

At Jyothy, our objective is to At Jyothy, it would have been
provide superior returns to all our relatively easy to predict the future.
stakeholders through continuous Rather, we engage in the more
new product formulations research challenging task of projecting it. Our
as well as deliverables enhancement strong ear-on-the-ground approach
by its products. enables us to gauge consumption
insights first-hand, which we
Innovation is Jyothy’s principal
translate into productisation that
business driver. We compete with
results in a strong solutions-driven
ourselves in creating progressively
proposition.
better products. Our robust R&D
process focuses on process Specifically, during the year 2016-17,
modification, enhancing overall with a view to take advantage of the
product quality. Northeast as a large and relatively
untapped geography, we invested
Eight-eleven and its impact in setting up three proximate
on us (Demonetisation) manufacturing facilities in Assam for
For a company that generates the manufacture of Ujala, Margo and
substantial revenues from semi Maxo liquid, the full impact of which
urban and rural India, it would have will be reflected in 2017-18. These
been reasonable to believe that facilities also possess multi-year tax
the demonetisation would affect and fiscal benefits.
our revenues. Even as much of The proposed implementation of
India saw the demonetisation as the Goods and Services Tax (GST)
a threat, we considered 8/11 as will have a positive outlook on the
an opportunity for innovation and consumption sector; we foresee the
better market outreach. Some of the unorganized sector vacating market
initiatives we undertook to overcome share in favour of the organized
demonetisation included the launch FMCG industry. For frontline
of smaller SKUs and superior supply players like Jyothy, consumption
chain integration; even as there was
some downtrading, there was little
tailwinds will not only be reflected
in organic sectoral growth but also
2,190
shift in product loyalty. The reality increase market share transfer to
No. of Jyothy
was that Brand Jyothy rose to the the organized sector of which we products are sold
challenge during this environment. expect to emerge as an important every second
Our net sales increased by 3.1% beneficiary.
during the third quarter of the year
under review when compared with For us, winning in the marketplace
the corresponding quarter of the means making the world a better
previous year, EBIDTA increased 2.5% place. At our Company, we have
and net profit grew a much sharper demonstrated a proven model;
`14.7
12% (standalone). we desire to make a difference to
consumer lives. We have a world-
We have always professed that class team and we have important Revenue generated
building trust-based consumer work to do. I am looking forward
relationships will lead us to success,
from every
to all that we have targeted to
not just in numbers but in terms accomplish in 2017-18.
advertising rupee
of enriched value. We believe in spent in India
coordinating with different functions, With enthusiasm,
integrating the company’s core
virtues into the system, strengthening
the emotional connect and
reinforcing the distributor-staff- M.P. Ramachandran
organization relationship.

KEY PERFORMANCE INDICATORS
(CONSOLIDATED FINANCIALS)
Net revenues Gross margins (%) Net profit

(H crore) ( H crore)
204.2
45.5
1,747
45.0
1,658
73.8
2015-16
2016-17
2015-16
2016-17
2015-16
2016-17
Analysis: Consistent Analysis: Our aggressive Analysis: Our net profit

growth in product offtake focus on cost margin of 11.7% (FY2016-
paired with a sustainable containment, process 17) was among the best
increase in average debottlenecking, value in the country’s FMCG
realisations led to a 5.4% engineering and portfolio industry as our net profit
revenue growth over the reorientation allowed us increased substantially
previous year. to rein in the fall in gross during the year under
margins to 50 bps during a report.
tumultuous year.

Average debt cost Operating costs Working capital Return on capital

(%) as a percentage of cycle (Days) employed (%)
revenues (%)
31.3
30.4
18.8
3.7
23
3.2
16
8.2
2015-16
2016-17
2015-16
2016-17
2015-16
2016-17
2015-16
2016-17
Analysis: A judicious Analysis: Our growing Analysis: Enhanced Analysis: Efficient capital
channelisation of cash scale coupled brand recall, assured allocation led to a 1,060
flows towards debt with productivity shelf space visibility, bps increase in our ROCE
repayment, paired enhancement and steady product offtake on a y-o-y basis.
with aggressive rate resource maximisation and strategically-
negotiations led to a led to a 90 bps fall in formulated terms of
moderation debt cost, the operating costs as a trade helped us largely
impact of which will be percentage of revenues maintain working
visible in the next year. in FY2016-17. capital efficiency barring
increase in receivables
due to a higher share of
sales to organised retail.

“WE HAVE BEEN TAKING ADVANTAGE
OF EMERGING FISCAL OPPORTUNITIES
AND MOVING CLOSER TO KEY
CONSUMPTION POINTS.”
K. Ullas Kamath, Joint Managing Director & Chief Financial Officer
consumption on the one hand and deeper category

Q Please provide an overview of your
performance during FY2016-17. penetration on the other. Just consider: in a country
as large and as vast as India, the detergent and
In FY2016-17 we added H89.7 crore in incremental soap categories account for only 40% of the overall
sales, representing almost 5.4% of our FY2015-16 penetration. As the country urbanises, becomes
revenues. This addition was achieved despite stiff younger and enhances employment opportunities,
sectoral competition, below-par monsoons and our growth prospects will brighten as well.
the demonetisation blow. Without the help of our
consumers and our workforce, we would not have
been able to win such an uphill battle. Q What is your take on demonetisation?
Though demonetisation came as a bolt from the blue,
Q What are some macro trends that put Jyothy
at an advantage?
it proved to be a shot in the arm for us. We adjusted
to the fleeting cash crunch through smaller SKUs
Our capex investments in the greenfield plant at of fast-moving products. We engaged in a more
Guwahati was not only driven by the temptation thorough credit appraisal, which led to inflows of
of short-term fiscal incentives but because of the long-pending trade receivables and tightened trade
sustainable economic vitality of the region. While it is terms. Concurrently, we helped our dealers and other
difficult to predict how the consumption landscape sales points clear stock levels, while building the
will change in any given year, the long-term prospects onward capacity to stock so that we could be ready
remain bright. A growing population and increasing to flood the market with our products as soon as the
per capita incomes (expected to reach ~ H1 lac during tide turned. As an outcome, we were able to control
FY2017-18) will take India’s consumption growth levels revenue de-growth to 7.8% during the third quarter,
to new heights. Besides, in emerging economies like compared with the second quarter. As anticipated,
ours, the middle-class has emerged as a key growth following normalisation, our Q4 revenues increased
driver by constantly demanding more effective and at a healthy 17% on a lower base of the third quarter
efficacious FMCG products. The growing influence revenues. This highlights our ability to restore demand
of technology is not only driving global inter- with speed among our loyal consumer base.
connectedness but also creating new risks. Organised
player like us need to come up with farsighted
solutions. Finally, raw material constraints have
caused sectoral players to shift their focus in favour
Q What were some of the key investments
undertaken during FY2016-17?
of sustainable sources. At Jyothy, we are attractively Over the years, we have been investing consistently
positioned to address these challenges because at the in shoring our manufacturing capacities, taking
heart of our success lies our ability to develop cost- advantage of emerging fiscal opportunities and
effective, relevant and solution-oriented products. moving closer to key consumption points. In line
with this, we set up three showpiece adjacent
manufacturing units in Assam (commissioned for ~
What were some of the other interesting
H30 crore) during the fourth quarter of FY2016-17.
Q developments to have transpired during the
year?
These additional production capacities, geared to
manufacture a higher proportion of low-priced units
In India, the earning-consumption cycle is longer than of three power brands, will reinforce our presence in
in most geographies with higher or similar per capita the North East and enable us to cater to markets in
income levels. However, we are witnessing faster Northern India.

Please comment on the EBITDA
Q margin which the Company

achieved in FY2016-17.
We achieved a strong EBIDTA margin in
FY2016-17, which is among the highest
following the Henkel acquisition. Improved
operational efficiencies and determined
teamwork helped us achieve this target. We
The implementation of GST, the promise
believe that we will be able to sustain EBITDA of good monsoons and increasing rural
margins at ~15%, going forward. expenditures makes us believe that we can
target a 12% growth in revenues.
Q Are we exploring data analytics?
This is a good point and yes, if we were
to look through a long-term lens, there is
definitely an inclination to use big data. Data
analytics will make it possible to project
trends and capitalise faster. Through the
cutting-edge SAP (S4 HANA) system that
went live on 1 April 2017 we will be able to
glean incisive insights that strengthen our
business forecasting.
Q How was the Company able to

counter challenges in 2016-17?
Our culture has always been an
entrepreneurial and experimental one. For
instance, we launched the Pril tub during the
year under review. We dared to accept the
challenge of shifting consumer perceptions
from stinky starch to a cloth enhancer like
Crisp and Shine. In the past too, we had taken
chances like launching Exo in a marketplace
crowded by international players. We
responded like a small company with
courage would and the results are there for
everyone to see.
Is the Company specifically
Q targeting the bottom-of-the-

pyramid segment?
We make products that address everyday
requirements of the mass segment and allow
us to penetrate deeper into the marketplace.
Although disposable incomes in India are
growing, it is more important to realise by
how much the per capita income at the
bottom-of-the-pyramid has improved. The
primary challenge for the rural market is
accessibility (physical and informational)

which gets manifested in the form in the natural product categories with
of heightened distribution and brands like Neem and Margo.
promotional costs. We believe that by
fortifying our distribution network we
How is Jyothy Laboratories
can make the most of the rural boom.
Looking ahead, we aim to scale our Q different from other FMCG
companies?
rural coverage to 25% by FY2017-18
by bolstering our information systems, There are three key principles that
increasing the number of SKUs, have set us apart. Firstly, we strongly
resources and creating a palpable believe in understanding consumer
presence across price points. expectations – stated and unstated.
Second, our decentralised model
lends us the ability to take decisions
Q Is the Company largely
geography-neutral?
with speed and capitalise effectively
on incipient opportunities. Thirdly, our
Yes, and that is because we operate in-house manufacturing capabilities
on the basis of a philosophy that puts offer better quality products in a
quality at the forefront. We do not pocket-friendly manner. Our superior
make cheap products just to reach logistical network allows us to reach
the bottom-of-the-pyramid. We may 6,000 villages. These are the facets,
lower our price point but we never which make us stand apart from the
compromise on quality. This is what rest.
Jyothy represents for customers –
‘value-for-many’.
Currently, we derive ~60% of our
Q What is your outlook for
2017-18?
sales from urban centres and the rest
The implementation of GST, the
from rural. However, the rural sector
promise of good monsoons and
is growing at an accelerated pace
increasing rural expenditures makes
and has a great potential to develop
us believe that we can target a 12%
further. Hence, we expect the division
growth in terms of our revenues.
of sales to get more even in the years
Further, GST will be implemented
ahead.
“We strongly after undertaking studies to align our
believe in business model with the emerging
What are some of the reality. In terms of our geographic
understanding
emerging trends in the Indian coverage, we plan to cover a larger
consumer
expectations Q FMCG market? How is Jyothy
planning to capitalise?
swathe of rural India as well as create a
presence in other major consumption
– stated and points. We are appraising product
Firstly, there has been a shift towards
unstated. Our health, wellness and allied products.
extensions even as we continue to
decentralised plug consumer needs with relevant
People are more cautious about their
products.
model lends us health now than before. Secondly,
the ability to more people shifting towards natural Some of the other initiatives
take decisions products as opposed to synthetic undertaken include the following:
ones. Thirdly, the emergence of online
with speed • Re-launch Margo with a new
retail stores has been counterpointed
and capitalise by mom-and-pop stores taking a
formulation
effectively backseat. As a result, even in difficult • Implement SAP across the
on incipient times, there is room for superior organisation
opportunities.” products to make an impact as long
• Introduce a unified sales platform to
as they offer value-for-money. We
link dealers and distributors
leveraged our longstanding presence
in the segment to enhance our quality • Use analytics and big data to
quotient and enhanced our presence enhance business intelligence

BRAND PROMOTIONS
At Jyothy Laboratories, a company that is engaged in differentiated innovation, we enjoy a legacy of developing
products that provide tangible customer value. Through the identification and articulation of this value, we are
able to formulate strategic and insightful brand communication.

Product report: From the Director’s desk
Jyothy Laboratories is synonymous with innovation.

We believe that the only route to win in a competitive
market is to create robust products in terms of
formulation, packaging and communication. During
2016-17, we continued to do precisely that and I am
happy to state that the results have been positive.
Product innovation higher liquid consumption (with the

In August 2016, we launched the liquid finishing in 15 days when it was
advanced Maxo Genius machine that supposed to last 45 days), increasing
was well received. After embracing cost and frequency of purchase.
what we know best – taking At Jyothy Laboratories, our Genius
comprehensive customer feedback machine is programmed in a manner
– we came to realise that most other that it switches on by default to
machines had some standard features the ‘high’ mode and, after some
that included a ‘high’ and ‘low’ time, automatically stabilizes to the
intensity mode. Depending upon the ‘normal’ mode. This engineered
mosquito infestation, the user usually
Maxo deemed as product has been designed to create
‘fixed’ the mode. However, what a strong marketplace differentiation.
‘Product of the normally used to happen was that the It preserves the liquid content over
Year 2017’ by user turned the machine to a ‘high a longer period of time, thereby
AC Nielsen in the mode’ and forgot about changing to circumventing the need to enhance
insect repellents the ‘low mode’ when the infestation purchase frequency, enable the
category was under control. This resulted in customer to adhere to keep within the

household budget and control ingredient-based personal care

the mosquito menace. products will take the brand to
the next level.
I am happy to mention that
the Maxo Genius machine was
voted a winner by consumers Communication
nationwide in a 100% face-to- innovation
face interview by AC Nielsen in When we extended the sales of
the ‘Product of the Year 2017’ Ujala Crisp and Shine to Tamil
competition. The product won in Nadu from its principal Kerala
the insect repellents category. market, we embarked on new
communication to extend the
Packaging innovation product’s imagery to imparting an
We introduced our utensil ‘Executive Look’. This ‘Executive
brand Pril in a 500g SKU in an Look’ is an important point
innovative tamper-proof box, a because a number of attributes
first of its kind in the category. are associated in terms of greater
The bar comes with active confidence. We roped in actor
boosters in the form of blue Surya, who enjoys immense
speckles for a superior grease- popularity in Southern India, as
cutting performance. In addition brand ambassador. Ujala Crisp
to the superior product and and Shine comes in three floral
packaging, the pack comes with variants in attractively-packaged
a free scrubber, adding more bottles.
value to the end consumer. The
new mix was backed by strong Going Forward
communication. The new launch At Jyothy Laboratories, we
garnered positive feedback from intend to build on the gains
the market and is poised to make accrued out of our research and
a big leap in the dish wash bar innovation-centric initiatives
space in the coming year. and offer unmatched value in
product offerings to consumers.
Brand Margo, with a heritage Our consistent efforts in creating
of 96 years, went through a a marked differentiation in
complete makeover in 2016 and the value we offer will help us
is poised to take a giant leap in grow faster and strengthen our
the natural ingredients-based niche position in all the product
soap category with unique skin- categories that we operate in.
care benefits. Margo Original
Brand Margo, with a
Neem promises to offer the heritage of 96 years,
goodness of 1000 neem leaves Best wishes, went through a complete
with added Vitamin-E for extra makeover in 2016 and is
moisturizing. We have backed poised to take a giant leap
the restage with strong brand
in the natural ingredient-
communication and believe that
the marketing mix alongside M.R. Jyothy
based soap category with
the growing demand for natural Chief Marketing Officer & Director unique skin care benefits.

Consumers speak

Bhaiyya, ek Exo bar dena.

Nahin memsaab. Main aaj
aapko kuch aur doonga.
Nahin bhaiyya, mein chali.
Thank you!
Arre memsaab, suniye toh!
Ab kya?
Mein keh raha tha ki aaj aapko
mein Exo Round doonga!
Memsaab, yeh Jyothy
Laboratories ka kamaal hain.
Yeh sach hai kya?
Aur round honay ke kaaran,
yeh bartan ki jamke safaai
karta hain. Iss me chamatkaari
‘Anti-Sogg’ formula bar ko
paani mein jaldi pighalne bhi
nahin deta!
Arre wah!
Plus yeh anti-bacterial hai.
Bartan isse swacch rehte hai!
Exo Round ke liye kitna doo?

Consumers speak

Arrey Pinky, pataa hai kal raat ghar

mein kya hua?
Aag lagte-lagte bach gayi.
Woh kaise?
Mosquito card jal rahaa tha aur

Rohan ne bhool se pankha chalaa
liya. Toh card carpet par udd kar
ulta gira. Yeh toh accha hua ki
Rohan ne turant phoonk maar kar
spark bujha diya.
Arrey, yeh toh dangerous kissa tha.

Seema, tum ek kaam kyon nahin
karti? Tum Maxo ka Magic Genius
Card kyun ghar mein nahi le aati?
Maxo Magic Genius Card mein kya

nayaa hai?
Genius card hai. Yeh card stand ke

saath aata hai. Jab card ko stand
par laga diya toh uddne ka koi
chance nahi! Yaney ki card bhi jalta
rahen, aur pankha bhi!
Aur-to-aur, Maxo ka ‘Swift Action’
formula maccharo par bada bhari
padta hai!

BUSINESS
COMPETENCIES
Entrepreneurial Widespread Mass-premium

Jyothy is a family-owned The Company’s distribution Jyothy occupies a unique
enterprise with a deep respect for supply chain resides at the heart positioning in meeting mass-
professional entrepreneurship. of its sectoral supremacy. As a premium needs. In an aspirational
This culture enables it to take consumer-friendly enterprise, the India with growing incomes, it
on-ground decisions with speed. Company has developed a wide manufactures world-class quality
The Company believes in building and deep distribution network with premium packaging around
trust, fostering collaboration and propelled by the ideology that a cost-effective proposition.
learning from mistakes. With a ‘if they grow, we grow’. The It possesses strong presence
transparent and open-door policy, result is a pan-Indian network in the country’s FMCG sector
it welcomes every small idea; it comprising 1,400 stockists, 260 (detergents and fabric whiteners,
believes that small ideas can have super-stockists and ~4,000 sub- our mainstay), manufacturing
a big impact if executed properly. stockists. This expansive network products essential to most
The Company focuses on enables it to replenish stocks and household monthly spends.
enhancing people skills, enabling maximise shelf space visibility.
them to realise their potential
and keeping them engaged in a
productive manner.
Responsible Technology-driven Hands-on

The Company’s manufacturing Jyothy invested in best-in- Through a reverse auction
facilities operate in complete class technology for employee process, the Company reduced
compliance with established performance mapping, tracking its supply costs and enhanced
regulations. It focuses on secondary sales and distribution stock replenishment. Besides, the
exploring solutions that minimise as well as inventory management. Company partnered IT-enabled
its environmental impact. The It is in the process of creating logistics firms and vendors to
Company optimises the use an Android app version of its ensure cost-effective market
of finite natural resources like employee portal. The Company access.
water, whose consumption in plans to integrate business
manufacturing activities has intelligence in its SAP module to
declined over the years. automate financial budgeting.

Well-known Innovative Focused

As one of India’s most respected Jyothy studies the market gaps
In the FMCG space, the ability to
FMCG companies, Jyothy is proud and creates products that ensure
innovate strengthens a company’s
to have created several category- faster offtake. The Company’s
visibility and market share. In
defining brands from scratch. For strategic communication
cognisance of this reality, Jyothy
instance, its Ujala brand brought initiatives enhance awareness
invested towards bolstering its
about a paradigm shift in the about products and properties. It
manufacturing, technological
realm of the fabric whiteners. positioned the Maxo Genius Magic
and procedural capabilities. For
Margo is the de facto Neem- Cards in areas where it could
instance, it altered Pril packaging
based soap brand across India. supplement Maxo vaporiser sales.
to put the bar into a tub,
Besides, the Company extended
strengthening product durability.
its focus from the southern part
The Company added a scrubber
of the country to other parts,
inside the box to enhance user
ensuring a pan-India visibility. It
convenience. It focused on re-
possesses six Power Brands –
launching products with improved
Ujala, Henko, Maxo, Margo, Exo
formulation like Ujala Crisp and
and Pril. Sales from Power Brands
Shine, which represent a superior
resulted in 4.4% growth for the
version of the Ujala Stiff and Shine.
year under review. The Company
This helped the Company emerge
offered better products following
as the top-ranking brand in Kerala Enduring
in-depth research. To keep the The Company creates win-win
and Tamil Nadu within a few
marketplace excitement alive, the relationships with consumers. It
months of launch.
Company re-launched brands in leaves a mark in all the segments
the constant pursuit of providing a it enters. The Company makes its
consumer surplus. brands ‘talk’ as it connects deeper
with its targeted segment. The
Company takes interest in the
businesses of its stakeholders and
invests in the businesses of the
best-performing ones.
Customer-centric Robust
The Company has always been Thirty-four years ago, when
obsessed with serving consumer the Company started as a small
needs – stated and unstated, met business, its rigorous research
and unmet. It develops products helped it come up with a
after engaging in extensive marketable FMCG product –
research. Being a homegrown Quality-obsessed
Ujala. Jyothy now owns and
FMCG company, it enjoys a strong The Company does not
operates two in-house R&D
grassroots connect, enabling it to pay lip service to qualitative
centres, which are relentlessly
convert consumer insights into excellence; it lives it. Though
engaged in developing product
relevant products. For example, the Company reaches out to
formulations that offer effective
when it realised that typical fabric the bottom-of-the-pyramid, it
and efficacious solutions. Its
whiteners imparted a ‘yellow never compromises quality. By
unwavering focus helped it extend
white’ colour to the fabric, the partnering reliable raw material
to the household insecticides
Company manufactured Ujala, suppliers and packagers, it
segment (Maxo coil and liquid).
providing an ‘executive look’ matches and raises sectoral
The Company’s product re-
based on the fabric’s crispness benchmarks. Besides, the
launches have been based around
and shine. Company invests in developing
differentiating itself from me-too
third-party suppliers, helping
products in the market.
them grow while ensuring
seamless supply chain operations.

MANAGEMENT
DISCUSSION AND ANALYSIS
Global economic Indian economic and Maharashtra receiving 20%
overview overview more rain than the usual, the
Global economy growth India’s GDP grew at 7.1% in FY17 agriculture sector is expected to
continued to stagnate following versus a revised 8% (7.9% as per grow at an above- average level
slow trade, low investments and previous estimate) in FY16. India’s of 4% on a weak base caused by
policy uncertainties in advanced GDP growth in the January- two consecutive poor monsoons.
economies. The 2016 fiscal was March quarter was lower than This should lift the sagging rural
defined by the UK’s decision to China’s 6.9% for this period. demand and, by extension, the
leave the EU and the election of Demonetisation had a pronounced GDP growth rate. The major
Donald Trump as the US President. broad-based impact on the impetus is expected to come
Both events are expected to economy in the fourth quarter. from the farms as non-agriculture
have long-term effects on the Despite a sequential slowdown, growth is pegged to pick up by
global economy. Consumers agriculture and mining sectors 10 bps over the previous fiscal to
continued to spend cautiously held up with consumption 8.6%. The Union Budget for 2016-
with expenditure increasing by being robust. Manufacturing, 17 came in the context of a fragile
just 2.4% in real terms over 2015, construction and major services economic situation. It was not just
well below the corresponding were hit by the currency squeeze, the stress in the rural economy,
increase in disposable incomes. pulling down real gross domestic which caused a steady decline
However, the Asia-Pacific product (GDP) growth in Q4FY17 in real wages as well as lowered
region saw a marked increase in to 6.1% from 7%. farm incomes, there was also the
expenditures. Global growth in slowdown in the manufacturing
Over the last 30 years, India’s segment and a rising incidence of
2016 was estimated at 2.3% by the
growth performance has been NPAs. The Union Budget for 2017-
World Bank and was projected to
rise to 2.7% in 2017. Growth in
robust, backed by policy reforms 18 set aside H48,700 crore for the
that have made India more open MNREGA scheme to strengthen
emerging markets and developing
to flow of goods and capital. The skill development. (Source: Crisil,
economies is expected to pick
challenges that India faces include HT)
up in 2017 on the back of the
ambivalence about property rights
removal of a number of obstacles
and the private sector, deficiencies Outlook
for commodity exporters and
in state capacity, especially in The near-term growth outlook for
continued domestic demand for
delivering essential services, India seems brighter than during
commodity importers. The main
and inefficient redistribution of the last fiscal. The growth forecast
factors that could weigh on the
capital. The growth rate of the for the next fiscal has been
medium-term growth prospects
industrial sector was estimated trimmed by 40 bps. This has been
across many emerging markets
to moderate to 5.2% in FY 2017, primarily due to the temporary
and developing economies are
down from 7.4% in FY 2016. The negative consumption shock
weak investments and below-par
country’s IIP registered a modest induced by cash shortages and
levels of productivity. (Source:
growth of 0.4% during the April- payment disruptions associated
World Bank, Euromonitor)
November period of 2016-17. with the currency note withdrawal
With Rajasthan, Madhya Pradesh
Growth
2016 2017 2018
Global economy 3.1% 3.4% 3.6%
Advanced economies 1.6% 1.9% 2.0%
Emerging market and 4.1% 4.5% 4.8%
developing economies
(Source: IMF)

India’s FMCG sector is the fourth-largest in India

Quarterly sales volume growth for FMCG categories (%)
Personal care Household care Food & beverages All categories
6 6 6 6 6 6 6 6
5 5 5 5
4 4 4 4 4 4 4 4
Jan-Mar 2016 Apr-Jun 2016 Jul-Sep 2016 Oct-Dec 2016 Jan-Mar 2017
(Source: http://www.tradingeconomics.com)
and exchange initiative. Subsequently, increasing digitisation, rampant

India’s GVA growth is likely to stay at e-commerce growth and changing
6.6% as economic activity will take lifestyles. Case in point: consumer
time to normalise. The imminent spending is likely to increase to
implementation of the GST will US$ 3.6 trillion by 2020, with the
boost interstate trade by ushering bulk of it taking place in segments
investments, reducing supply chain- like food, household, transport and
related issues, improving economies- communications.
of-scale and cutting overheads.
(Source: IMF, ICRA) Outlook
India’s share of global consumption
Indian FMCG industry – a is also forecast to double to 5.8%
sectoral overview by 2020. The overall FMCG market
The FMCG sector has grown at is expected to grow at a CAGR of
an annual average of 11% over the 14.7 % to touch US$ 110.4 billion by
last decade. The combination of 2020 and the rural FMCG market
macroeconomic factors like higher is anticipated to clock a CAGR of
disposable incomes (expected to 17.7 % to reach the US$ 100 billion-
grow at a CAGR of 20.6% till 2020) mark by 2025. (Source: IBEF, Boston
unprecedented rural development Consultancy Group)
(accounts for 40% of the overall
Prime factors boosting
FMCG market in revenue terms. For Segmental performance consumer spending in
the past few years, the retail sector The Indian FMCG industry, which is
India
has been growing steadily and is primarily targeted at the middle-class
estimated to reach US$ 1 trillion and the bottom-of-the-pyramid Budgetary provision
by 2020 from US$ 600 billion in segments is estimated to show allowing reduction of tax
2015. The modern trade vertical is significant growth in the next few slabs of corporates and
expected to grow at 20% per annum years as per capita incomes continue individuals
and expected to boost revenues of to rise, media exposure proliferates, Substantial rise in per
sectoral players over the foreseeable branding exercises intensify, rural capita incomes (10.2% for
future. According to market research awareness increases and product FY17)
firm AC Nielsen, the per capita FMCG variations multiply. The global
household cleaners market, which Post-demonetisation
consumption in India was pegged
includes floor cleaners, kitchen slashing of lending rates
at US$ 29 (accounting for 2% of
India’s GDP). The Indian consumer cleaners, bathroom cleaners and Growing preference for
sector has grown at a CAGR of 5.7% fabric care, among others, were e-payments
between FY2004-2005 to FY2014- valued at ~US$ 25.50 billion in
Increasing demand for
2015. Annual growth of the Indian 2016. This niche vertical is expected
quality products
consumption market was estimated to grow at a CAGR of 4.8% from
to be 6.7% during FY2015-20 and 2017 to reach US$ 33 billion by Fluctuating spending
7.1% during FY2021-25 on the back 2022. Consumer demand in this patterns
of better access to information, segment has risen amidst increasing

awareness regarding environmental FMCG sector – sales drivers
issues, aggressive promotion • Growing preference for online
strategies and keen emphasis on retail and grocery apps (Grofers,
key aspects like hygiene, innovation Bigbasket, among others)
and pricing, among others. Recent
• Increasing market penetration of
product-oriented R&D initiatives
different FMCG companies in line
have resulted in the emergence of
with changing lifestyles
retrofitted products like lint removal
detergents and fabric-specific • Growing disposable incomes
conditioners, among others. The • Rising demand for quality
Indian fabric care market has grown products
at a CAGR of > 9% over the past five • Evolving product mixes
years and is expected to register • Swelling awareness and ease-of-
double-digit growth rate within the access
next five years. The Indian home care
• Growing preference for
industry also has shown potential
promotions via social media
to reach ~US$16 billion in revenues
by 2020. The personal care market
in India is estimated to treble from Future prospects
US$6.5 billion in 2016 to US$20 With bank lending rates coming
billion by 2025. (Source: http:// down following demonetisation
www.businesswire.com; http:// as well as lower tax slabs for
businesseconomics.in, ASSOCHAM, individuals, could increase demand
Zion Market Research) for FMCG products. The impending
GST regulation is also expected to
benefit the Indian FMCG industry
FMCG sector – cost drivers by reducing taxation costs. Mobile
• Debottlenecking of logistics and applications, online grocery shops
distribution networks like Grofers, Bigbasket, among
• Securing raw materials others, as well as emerging markets
• Warehousing and inventory for modern trade, placing products
management in supermarkets and hypermarkets,
excellent distribution networks,
• Promotion campaigns and brand-
cheaper logistics have revolutionised
building
the Indian FMCG market. Shifts in
• Offering discounts and other consumer buying patterns (from
incentives need-based to aspirational) as well
• Ensuring a significant share of increasing per capita incomes have
shelf space in stores allowed the economy to prosper.
• Leveraging the aspirations of a In the years ahead, the industry is
The overall FMCG growing economy expected to make the most of capital
market is expected
to grow at a CAGR
The Indian rural FMCG opportunity
of 14.7 % to touch
US$ 110.4 billion by Rural FMCG market (US$ billion)
2020 and the rural 100.0
FMCG market is
anticipated to clock
a CAGR of 17.7 % 29.4
18.9
to reach the US$ 9.0 10.4 12.3 12.1 14.8
100 billion-mark by 2009 2010 2011 2012 2013 2015 2016 2025E
2025. Note: E - Estimate
(Source: https://www.ibef.org)

The digital influence on spending patterns to reduce tax rates of individuals

earning H0.25-H0.50 million to 5%
Digital influence will far surpass online spending
...WILL RESULT IN MORE THAN TENFOLD GROWTH
will heighten disposable incomes
SIGNIFICANT INCREASES IN THE NUMBER OF
DIGITALLY INFLUENCED AND ONLINE SHOPPERS... IN DIGITALLY INFLUENCED RETAIL AND
ONLINE RETAIL SPENDING
and propel demand. The Bharat
Millions $ billions
1000 600 500-550 Net Project will aim to provide
820-850
broadband connectivity across
800 630-650
400 150,000 gram panchayats with
600
320-340 400-450 hotspots and digital services at
400 180-200
270-300 200
130-150
pocket-friendly rates. This will
200 120-140 300-350 45-50
180-220
40-50 allow online retail channels to
10-13
80-90
0
2015 2020 2025
0
2016 2020 2025
access uncharted territories.
Internet users Share of
total retail 2-3 8-10 5-6 20-25 8-10 30-35
Online shoppers spending (%) Business drivers
Digitally influenced retail shoppers Digitally influenced retail spending
Note: N - 20000 in every year. 51-67 rupees Online retail spending
Operations and manufacturing:
In the FMCG industry, competent
(Source: Boston Consulting Group) manufacture ensures that
customer needs are addressed
within the shortest time around
coming in from foreign investors, industrial licenses are no longer
the highest quality standard.
regular monsoons, unprecedented required for processed food and
Jyothy has a robust manufacturing
growth in the service industry and agro-based industries, aiding the
set-up which ensures products
various government initiatives. FMCG industry. The rural segment
reach the market at the right time.
accounts for ~30% of the FMCG
The Company has manufacturing
Governmental measures revenues. Recent initiatives
facilities spread across various
The Government of India has undertaken to foster agricultural
locations in India and it is
allowed 100% FDI through development (MGNREGA
constantly planning on capacity
the automatic route as far as and PMGSY) could lift the
expansion to cater to consumer
online retail sales of goods and socioeconomic status of people
needs. The Company is setting
services are concerned. Most residing in these geographies
up three new manufacturing
FMCG companies are shifting and harness demand for FMCG
units at Guwahati in the North-
loyalties from local groceries to products. The Central Government
East to capture better market
online retail chains. The Central has allocated H1.87 trillion towards
share for the three Power Brands,
Government has mandated that rural development. The decision
namely Maxo, Margo and Ujala.
SWOT analysis
STRENGTHS OPPORTUNITIES
• Adequate access to raw materials • Rural development
• Balanced mix of value-for-money and • Increasing disposable incomes
aspirational products • GST obviating the need to pay ‘double taxes’
• Extensive distribution channels • 100% FDI in online retail via automatic route to
• Cost-competitive logistics catalyse the influx of foreign capital
• Skilled workforce • Growing preference for e-commerce modes
• Advanced R&D
WEAKNESSES THREATS
• Stiff competition • Existing competitors
• Need for constant innovation • Emergence of new players following the
• Low margins derived from products targeted demonetisation measure
towards the lower rungs of the economic • Increased duties and cess following GST
pyramid implementation
• Foreign players foraying into the sector

The manufacturing plants for Maxo market offered ‘yellowed white’
and Ujala are fully-automated and and changed the perception about
The Company’s will raise output, reduce labour white on the whole. It created Maxo
revenue from dependency, more products and magic cards with a holder, when it
operations increased generate higher revenues. It identifies identified how difficult it was to put
the gap in hardware and machines on the fan and use coils as mosquito
from H1,657.7 crore and resorts to upgradation for repellants. The Company has 8-10
in FY2015-16 to a more evolved manufacturing professionals working full-time in
H1,747.4 crore in process. Out of the total production, its research and development labs.
internal manufacturing units account The Company invests in strategic
FY2016-17 on the for about 70% while the rest is resource allocation to make
back of volume and outsourced to third party units. sustainable products. It focuses on
value growth, aided The Company believes in building advanced research and development
enduring relationships with raw to create differentiated products with
by new product material and packaging suppliers, unique ingredients. This eventually
launches. which helps the manufacturing helps it penetrate deeper into the
and distribution process in creating market. In case of Exo, the Company
new products in line with changing modified formulations to bring
demands. JCPML (formerly Henkel more shine, the anti-bacterial touch
India Marketing Limited) was merged and useful container packaging.
with the Company. All the assets and The Company plans to change
liabilities of JCPML were recorded at formulations for its natural product
their carrying value. Subsequent to in the soap category i.e., Margo with
the JCPML merger, JLL standalone improved quality through advanced
will represent its FMCG business research and development and
and the Company looks forward process improvement. The Company
to expand its operations more competes with itself to pass on
effectively. The Company partnered better consumer durable products to
new vendors who supply it raw consumers.
materials and other commodities for
reducing input costs and enabling
Distribution
it to offer better pricing through
The Company has a robust
a cost-plus model. The Company
distribution network; its distributors
invests to develop Tier-II vendors and
have been with it for years showing
takes the opportunity to grow as they
their commitment towards a smooth
grow. It is planning to create vendors
delivery of its products. Jyothy has
close to its manufacturing units to
multiple distributors taking care of
capitalise on the cost advantage and
stock replenishment in different retail
consolidate vendors post GST.
outlets and groceries just-in-time.
Its distribution network comprises
Research and development 1,400 stockists and 4,000 sub-
Jyothy has a keen focus on research stockists catering to the growing
and development, to offer everyday need of consumers in a timely and
essentials of better quality to cost-effective manner. The Company
consumers. The Company has two followed a structured reverse auction
in-house research and development process for the past four years for the
facilities, where its teams work selection of its logistic partners which
relentlessly to check and modify resulted in about 3% reduction in
formulations and come up with price through negotiation. Currently,
improved solutions. The Company the Company has over 30 logistic
identifies the key challenges in partners pan-India transporting 80%
everyday life of consumers and of its raw materials/finished goods
creates products that meet their and is planning to shift from broker-
needs. The Company came up with driven to IT-enabled logistic partners
Ujala when existing players in the to automate ordering, allocation and

delivery process. The Company increased product variation and programs conducted from
connects to direct distributors premiums. The financial growth time-to-time to keep employees
via a secondary sales software reflected in the earnings per share energized and productive.
named Lakshya, and it also has as well, which grew 175.7% from
Jyothy’s IT and HR functions
another channel that connects H4.1 to H11.2.
work hand-in-hand with all HR
with the super-stockists, who
processes fully-automated –
in turn connect with the sub- Human resources
from joining to retirement. The
stockists using ‘Jyothy Aadhar’. The Company’s brands are its
Company recently upgraded its
Jyothy partnered with online app assets and great brands are
payroll platform to SAP. Employees
company, Bigbasket, to reach built with inspired employees. are provided with JConnect, an
consumers in the shortest possible The Company’s employees are online employee portal that not
time. It invests in the business of entrepreneurial, innovative, only provides employee services
its distributors and suppliers since dynamic and driven by a strong but also represents a platform for
they are a part of its business sense of ownership. Their engagement. JConnect Mobile,
model and as they grow, it grows. performance is reflected in the an Android and iOS mobile app,
The Company plans to shrink ability to counter market dynamics allows employees to complete
its replenishment cost and time with agility. Jyothy Laboratories tasks like applying for leaves even
through the use of data analysis. believes in an open-door policy when they are outdoors, through
Its modern trade processing has with its senior management being the mobile phone.
been 60% centralised and it looks quite approachable. All employees
have well-defined performance The Company believes and works
forward to make that 100% by the
parameters (KRAs), which are towards women empowerment,
next year.
aligned to the organizational goals which is evident from its gender
and form the basis of performance mix; almost 20% of the total
Prudent financial management employees are women (as on 31
evaluation; the Company
The Company’s revenue from March 2017). Under the corporate
possesses a 2,400-strong
operations increased from H1,657.7 and manufacturing functions, the
employee team.
crore in FY2015-16 to Rs.1,747.4 number is still higher at 24% and
crore in FY2016-17 on the back of The Company aligns its HR 34%, respectively. The Company
volume and value growth, aided strategies towards skills also possesses a strong counter-
by new product launches. The development and, in collaboration sexual harassment policy.
Company’s revenues comprised with Teamlease Skill University,
increased earnings from the sale enrolled as many as 133 members Information technology
of fabric care products, household for skills development in FY2016- Jyothy Laboratories has invested
insecticides, personal care 17. Moreover, to enhance extensively in developing its
products, dish-washing products employee skills, the Company IT infrastructure to improve
and laundry services. Operating provides internal as well as performance efficiency and
EBITDA stood at H256.9 crore in external training to its employees. productivity and has also built
FY2016-17, compared with H238.3 These training sessions are a strong distribution network.
crore in FY2015-16, representing a provided across the job function In an important development,
healthy 7.8% growth. The demand or for soft skills development. The since 1st April 2017, the Company
for FMCG products increased training not only helps enhance successfully implemented SAP
manifold over the years and the skills but also enhances workplace S4 HANA across all its business
Company reported steady earnings productivity. functions, becoming one of the
growth in competitive markets. first companies to be on this latest
All Company employees and
Net profit improved owing to version of SAP. The Company also
their families are covered under
improved efficiency in operations, plans to implement modules like
the Company-sponsored Group
tax exemptions and reduced costs. Medical Insurance to take care Business Planning and Analytics
The Company’s PAT increased of their medical expenses in case and FIORI on the HANA platform.
exponentially at 176.6%, from of ailments or exigencies. Jyothy In yet another development, the
H73.8 crore in FY2015-16 to also offers employees a voluntary secondary sales software ‘Lakshya’
H204.2 crore in FY2016-17. EBITDA group medical policy for parents was upgraded from the previous
margin improved to 14.7% from or in-laws. version to ‘Lakshya 2.0’, improving
14.4% in FY2015-16, following
The Company organizes a distributors’ secondary sales,
improved cost management,
number of employee engagement claims processing and inventory
operational efficiency and

management. The Company also uncertain circumstance. It has well as exiting ones
introduced ‘Jyothy Aadhaar’ a devised product specific strategies
Mitigation: The Company
distributor management system that help understand closely
manufactures quality products
for super stockists. While Lakshya the cash flow cycle of Indian
and offers them at a reasonable
provides visibility at the distributor consumers, thereby hedging the
price to reach people through
and super stockist’ points, Jyothy risk.
communications via different
Aadhar provides a link between
Compliance risk: Non-compliance media. It undertakes extensive
the super stockists and sub-
of regulations may raise the promotion and advertising to
distributors. It helps to provide
operational risk for the company create value, positioning and recall
seamless information about
for the powerbrands.
various Company schemes as Mitigation: The Company has a
well as disseminates information structured internal control system Human resources risk: Employee
related to secondary sales and in place to ensure all statutory attrition may affect the operations
inventory at distributor points. rules and regulations are met of the company
including changes in taxation and
The Company’s online employee Mitigation: The Company
other regulatory framework.
portal ‘JConnect’ available across encourages new talent and
web, Android and iOS versions, Supply chain risk: Inadequate provides specialized training to
acts as a one-stop platform supply of material may hamper the sales force to ensure the roots
for all HR-related activities like the revenue generation for the are grounded well, improving
attendance, pay slips, Form 16, company the performance standards and
etc and also enables employees positively contribute towards the
Mitigation: The Company has
to manage and apply for leaves, growth of the company.
built enduring relationship with
outdoors etc.
their distributors for years. It has Seasonal risk: Sluggish sale of
As the next step, the Company will invested in developing advanced products due to seasonal changes
be focused on implementation information technology software may affect profitability
of GST and making the necessary capable of forecasting demand
Mitigation: The wide-ranged
alterations in its IT systems for based on historical data. The
product portfolio of the Company
being GST-ready. The focus during supply chain management system
helps hedge against the seasonal
the next year will be on business is designed to align raw material
ups and downs.
intelligence and automation of sourcing and manufacturing,
financial and operations budgeting leading to improved inventory
Internal control system
and other related information. management, optimum resource
The Company has an adequate
utilization and smooth distribution
internal control system that
Risk identification and upending the working capital. The
ensures the business procedures
mitigation Company has a transport module
are conducted with compliance to
Risk is an inevitable concern for service level improvement
the standard rules and regulations.
for any business. We, at Jyothy focusing on channel-wise service
The key business processes are
Laboratories identify major risks to minimize stock outs.
all documented. The financials
arising out of various internal as Raw material risk: Inability to of the company are recorded
well as external scenarios that may procure raw material can reduce in conformity with the general
impact the revenue generation of margins accepted accounting practices.
the company. We devise effective The internal processes abide
business strategies and plan ahead Mitigation: The Company
by the government regulations,
to mitigate the risks through our employs people having vendor
company policies and financial
business activities. management skills that ensure
reporting standards. There is an
smooth flow of raw materials for
Economic risk: Economic audit committee that monitors
manufacturing operations. The
slowdown can affect the demand and reviews the processes and
Company leverages long-term
and the sales for the company recommends any changes to be
relationships with suppliers to
made. The management reviews
Mitigation: The Company has a secure raw materials at the lowest
the processes and necessary
diversified product portfolio that cost through better negotiation.
actions are taken to ensure
generates robust sales from either Competition risk: Increasing prudent business operations.
of the category to balance any competition from new entrants as

AWARDS WON
At Jyothy Laboratories, the year 2016-17 was eventful during which we were recognised for a new product
launch and for innovation in IT. In addition our HR head received a prestigious award instituted by CHRO Asia.
Mr. M. P. Ramachandran, CMD, was

selected as one of the finalists for the
prestigious ‘EY Entrepreneur Of The
Year 2016 India Award’.
IT awards
• DQ Vertical Warrior Award for Innovative use of Technology in FMCG Vertical
• IDC Insights Award for Excellence in Operations 2016
• CIO 100 – Intelligent Enterprise Champion Award by IDG
Product awards
Maxo Genius LV - Product
of the Year Award
HR awards
Most Influential HR
Leaders in India by
CHRO Asia

Business segment review
FABRIC CARE SEGMENT

Revenues, H737.9
Number of products 6
FY2016-17 crore
New products Ujala Crisp Revenue growth,
8%
launched, FY2016-17 & Shine FY2016-17
Overview Lock’ technology to retain fabric

Ujala is the flagship brand of shine post-wash.
Jyothy Laboratories and is
available across the diverse Portfolio
categories of fabric whitener, Ujala is present across the
detergent powder and fabric following categories:
enhancer. Ujala Supreme Fabric
Ujala Supreme - fabric whitener
Whitener is positioned as the only
efficacious solution to removing Ujala Detergent powder
yellowness and giving the brightest Ujala Crisp & Shine - fabric
white to clothes. enhancer
Ujala detergent powder is the Other detergent products
number two player in Kerala with include Henko, Mr. White and
the proposition of ‘Effortless Chek
Cleaning through Instant Dirt
Dissolvers’. Ujala was extended Competitive advantages
into the fabric enhancer category Ujala Supreme Fabric whitener is
under the sub-brand Crisp & an effective solution that imparts
Shine. Crisp & Shine is a strong the most brilliant shade of white to
brand in Kerala and was extended clothes. It dissolves 100% in water
to Tamil Nadu in FY2016-17. Ujala and spreads uniformly, penetrating
Crisp & Shine offers the unique the inner fibres of the cloth to
‘power of the executive’ look. It impart the brightest white.
is the only brand in the market
Ujala detergent powder
that imparts crispness, superior
comprises the unique ‘Instant
form and shape to clothes for the
Dirt Disslover’ technology that
perfect executive look.
dissolves dirt and stains, making
Henko was the first fabric the laundry process easy and
detergent in its category to offer effortless.
a solution for lint and ‘Nano Fibre
Ujala Crisp & Shine, with its
Financial snapshot
Ujala
2015-16 2016-17
Contribution to category sales (%) 57.3 56.8
Revenues ( H crore) 391.7 419.0
Henko
2015-16 2016-17

unique Poly Fx formula, imparts registered respectable growth and Ujala IDD powder, which enjoys
an impressive crispness, superior is the second largest detergent significant market share in Kerala,
form, brilliant shine and pleasant brand in Kerala will continue to receive focus in
fragrance, bringing forth the Ujala Crisp & Shine delivered that market.
perfect ‘executive look’. robust growth in Kerala and Henko offers a unique and
Henko is the only detergent that established a strong presence in relevant benefit to consumers. It
is proven to deliver superior cloth the new market of Tamil Nadu will continue to grow as a more
care. The brand’s unique Fibre Henko’s market share grew to consumer-facing brand as we
Lock technology prevents linting, 3.9% across select markets, an establish this new offering in the
which, in turn, ensures clothes outcome of sustained marketing market.
retain their newness longer. and branding efforts
Ujala Crisp & Shine will continue
with its robust growth momentum
Key highlights, FY2016-17 Outlook on the back of a strong and
Ujala Supreme fabric whitener Ujala fabric whitener will differentiated proposition of ‘The
reported healthy growth in continue to dominate the post- Power of the Executive Look’. The
a stagnating fabric whitener wash fabric whitener market given brand will also be extended to new
category. its superior performance backed markets.
Ujala detergent powder by all-India distribution.
DISH WASH SEGMENT

Revenues, H510.3
FY2016-17 crore
New products Pril bar Revenue growth,
7%
launched, FY2016-17 (in tub) FY2016-17
Overview proposition for the consumers in

The dish wash segment of the sub-category to switch brands.
the Indian FMCG industry Pril introduced an innovative
is competitive. Within this product in a container during
space, Jyothy positioned itself the year, which promises to be
around unique quality-driven a success. The product design
and customer-led product was modified to encase it within
propositions, resulting in leading a solid tub container, minimising
market share. melting wastage. Besides, it is the
The bar market, which grew at a only dish wash bar with active
2-year CAGR of 6%, comprises booster granules ingrained within
a lot of small players; the top- the bar. This helps impart extra
3 brands together constitutes de-greasing power to the bar. Pril
75% of the market. Exo dish was the first product in the dish
wash leveraged the ‘Touch & wash category with tamper-proof
Shine’ proposition during the packing, which helped in keeping
year, emphasising the power of the quality of the product intact
cleaning tough greasy utensils till it reached the consumer. It also
with relative ease, thereby offering possesses a world-class design
the consumer ultra-cleaning, that helps the product to stand
extra-shine and hygiene. The out on the retail shelf. The product
anti-bacterial property in Exo was an instant hit; for some time,
bar continues to be a potent demand overshot supply.

The Indian utensil cleaner liquid Pril (available in liquid and bar works effectively, cutting through
category is estimated to be form) grease, resulting in sparkling
a market of H400 crore. This utensils and saving dishwashing
Pril variants include Pril Lime, Pril
category is predominantly driven time. Pril is skin-friendly and
Kraft and Pril Lemon Burst
by two brands – Vim and Pril – available in pouch containers that
which together contribute as Pril liquid is also available in ensures extended cost-effective
much as 85% of the volumes. pouch and refill containers utility.
In the dishwashing liquid sub- Exo and Pril are available in
category, Pril is positioned as a multiple SKUs Key highlights, FY2016-17
superior degreaser, which helps Exo, in the dish wash bar sub-
category, recorded market share
remove grease with ease. Pril Competitive advantages
continues to gain market share gains by 50 bps, the highest
Exo is the only dishwash bar
year-on-year. A non-messy gel among major national brands
available, which possess an anti-
and quick-dry formula with instant following improved formulation.
bacterial formula.
grease-cutting properties due Pril, in the dish wash liquid sub-
The Bacto Scrub is India’s first
to ‘Active 2x’ molecules in the category, has been growing at a
and only dishwash scrubber, which
product helps gain consumer fast pace, gaining 110 bps in share
offers a bacto-guard protection
traction. over the past year. Currently, it is
that prohibits bacterial growth due
the second biggest brand with a
to the food particles that get stuck
Portfolio in the scrubber matrix.
share of 17.8%.
Exo Bar, Exo Scrub, Exo Gel, Relentless focus on key SKUs
Exo Powder and Exo Safai Steel Pril dishwashing liquid is the best
(especially for the Pril brand)
(scrubbers under Exo brand) among available products as it
addressed wider customer needs
especially during demonetisation
Financial snapshot
Exo was introduced across more
Pril Bar than 89,000 new outlets, resulting
2015-16 2016-17 in a near 11% distribution growth
Contribution to category sales (%) 6.8 6.6 Pril Kraft began to contribute
Revenues ( H crore) 32.5 33.8 to overall Pril liquid sales, helping
widen the brand franchisee
Exo Bar The Pril 500-gram tub is growing
2015-16 2016-17 at a fast pace and now represents
Contribution to category sales (%) 55.5 55.8 32% of the Pril bar portfolio
Outlook
Pril Liquid Exo established itself as a strong
anti-bacterial product while Pril is
2015-16 2016-17
established as a strong de-greaser
Contribution to category sales (%) 18.7 18.7 in consumer minds. This will help
Revenues ( H crore) 89.3 95.1 the brands gain traction in the
coming years.
Exo Scrubber Emphasis will continue to be laid
2015-16 2016-17 on leveraging the two brands and
Contribution to category sales (%) 17.7 17.3 strengthening the market position.

HOUSEHOLD
INSECTICIDE SEGMENT
Revenues, H261.2
FY2016-17 crore
Maxo Genius
New products Revenue growth,
Liquid -6.1%
launched, FY2016-17 FY2016-17
Vaporiser
Overview Competitive advantages

Jyothy entered the fiercely Maxo Liquid Vaporiser fits all
competitive household insecticide machines (except customised
liquid vaporiser segment with a machines)
differentiated product proposition
of Maxo A Grade liquid vaporiser Maxo Genius Magic Card comes
that ‘fits all machines’. with a safety stand to ensure safety
as the card (lighted) remains fixed.
The Company’s in-depth No other mosquito repellent cards
consumer understanding and offer this feature
unique insights gained out of
product engagement made it The Maxo Genius Magic Card is
possible to launch offerings that handy with a pleasant fragrance
did not warrant consumers to
Powered by Intellichip, Maxo
discard their previous machines
Genius Machine automatically
(after consumption of the liquid
shifts from attack (high) mode to
refill).
defend (low) mode for maximum
Moreover, the Company’s effectiveness
extensive research resulted in the
offering of Maxo Genius Magic The machine starts in ‘high
Card with a unique ‘safety stand’. mode’ to give off an instant
Ordinary mosquito repellent cards vapour blast to counter initial
without holders tend to fly and mosquito menace and switches
can be unsafe when lit. This led automatically to ‘low mode’ for
to a thoughtful innovation and steady protection
the Maxo Genius Magic Card was This thoughtful innovation led
introduced with a unique card to Maxo Genius winning ‘Product
holder. The card holder keeps of the Year 2017’ under the ‘Insect
the lit card fixed at one place Repellents’ category in a survey
while the Magic Card’s 3 Minute conducted by AC Nielsen
‘Swift Action Formula’ gets rid of
mosquitoes in minutes. The card Key highlights, FY2016-17
holder also ensures that the card Maxo Coil gained share even as
burns fully, thereby providing value the overall coil category remained
to users. sluggish
Portfolio Maxo Liquid Vaporiser remained

the fastest growing brand in the
Maxo Liquid Vaporiser, Maxo
category
Liquid Vaporiser Machine, Maxo
Coil and Maxo Genius Magic Card Maxo Genius Card emerged as
the number two player in Kerala,

Bihar and Jharkhand (share in Financial snapshot
excess of 10%)
Maxo Coil
2015-16 2016-17
Outlook
Though the market growth for Contribution to category sales (%) 63.3 62.8
mosquito repellents remained Revenues ( H crore) 176.1 164.1
sluggish in FY2016-17 owing to an
extended summer, the category Maxo Genius Card
is expected to grow on the back
2015-16 2016-17
of good monsoons (forecast) in
FY2017-18. Contribution to category sales (%) 4.6 3.8
• Aggressive communication
campaigns are expected to
strengthen brand equity
Maxo Liquid Vaporiser
2015-16 2016-17
• The objective is to gain market
share through innovation and
footprint expansion Revenues ( H crore) 86.4 84.4
PERSONAL CARE SEGMENT

Revenues, H159.6
FY2016-17 crore
New products Neem Face Revenue growth,
8.1%
launched, FY2016-17 Wash FY2016-17
Overview Portfolio
As people are increasingly turning Brands offering natural goodness:
to holistic natural sciences to seek
Margo Original Neem
fundamental solutions for their
short and long-term wellness Margo Active Glycerine with
and beauty needs, personal care Neem
products with natural ingredients Neem Active Toothpaste
is receiving a contemporary
makeover in the Indian and global Competitive advantages
markets. Our offering in the Margo Original Neem soap
personal care space is the 96 year
Made using 100% original
old brand Margo. The brand went
neem, ensuring a retention of the
through a complete makeover in
therapeutic benefits
2016 and is poised grow in the
natural ingredients-based soap The unique manufacturing
category with its unique skin care process ensures unmatched
benefits. The new Margo promises efficacy
to offer the goodness of 1,000
Infused with Vitamin-E for extra
neem leaves with added Vitamin-E
moisturising
for extra moisturising. Its unique
manufacturing process retains Margo Active Glycerine
the neem efficacy and use of Made from 98% pure glycerine
100% original neem, making it an Unique combination of glycerine
authentic neem.

for moisturising and neem for Enhanced market share by communication (goodness of
deep cleansing 0.1% (value) to 1.1%, a good 1,000 neem leaves for clear and
Neem Active Toothpaste achievement in a competitive beautiful skin)
market
98% natural origin Focus on South and East India
and Maharashtra
Offers complete natural care Outlook
Re-launch Margo with Appraise relevant extension
Key highlights, FY2016-17 modifications in formulation, new options and restaging the brand
Achieved 4.1% sales growth for packaging and better targeted
Margo
Financial snapshot
Margo
2015-16 2016-17
Neem Active Toothpaste

2015-16 2016-17

Railways order in Ahmedabad on
LAUNDRY SERVICES SEGMENT a BOOT (build-own-operate and
Bengaluru, transfer) 10-year contract
Largest laundry
Delhi,
chain in Currently Bagged a prestigious Delhi
Market status Mumbai,
India with 93 operates in International Airport Limited BOOT
Pune and
operational units 15-year contract
Chennai
Revenues, Revenue growth, Invested in analytics to analyse a
H44.1 crore 2.7%
FY2016-17 FY2016-17 customer’s wash cycle frequency,
quality of clothes given for
washing and the kind of wash
Overview Customised wash as per fabric needed
Jyothy entered the laundry Ironing and packaging
services segment with Fabric Spa Folded/super crease Outlook
in August 2008. The Company Bleaching The laundry services business is
perceived an opportunity in the Whitening expected to grow substantially
declining dhobi culture, increased Dyeing owing to hospitality sector growth
need for laundry sophistication, Darning and urbanisation. The Company
rise in workforce, growing plans to commission new outlets
incidence of nuclear families, Competitive advantages in metro cities, representing the
widening bachelor pool, water Affordable rates largest premium laundry services
scarcity and dearth of time outside Premium wash location in India. We also plan to
work schedules. The Company Delivery at doorstep execute strategic moves in the
launched the service in Bengaluru, market through innovation and
which was extended to other Key highlights, FY2016-17 offering unique services, aligned
metro cities. with consumer requirements.
The business has 93 operational
USPs outlets in key Indian cities
Premium laundry services Bagged a prestigious Western

OUR PRODUCTS SHOWCASE (SELECT)

INDUSTRY SIZE AND OUR MARKET SHARE

AT A GLANCE
Dishwash
DishwashBar
bar
2015 2016
Volume Value Volume Value
(in MT) ( H in lacs) (in MT) ( H in lacs)
Urban 1,98,848 1,37,103 2,07,586 1,38,335
Rural 1,15,152 76,603 1,27,677 81,995
Total 3,14,000 2,13,706 3,35,263 2,20,330
Dishwash
DishwashBar
liquid
2015 2016
Volume Value Volume Value 2016
(in kl) ( H in lacs) (in kl) ( H in lacs)
Urban 19,252 32,892 20,681 35,947 Value (%)
Rural 2,233 3,442 2,456 4,045 0.4%
Total 21,485 36,334 23,137 39,992 18.6%
17.8%
Dishwash
MosquitoBar
coils
2015 2016
Volume Value Volume Value 0.8%
(in million no.) ( H in lacs) (in million no.) ( H in lacs)
7.2%
Urban 3,368 86,340 3,256 84,826 10.9%
6.3%
Rural 2,952 70,938 2,976 73,022
Total 6,320 1,57,278 6,232 1,57,847
Volume (%)
Dishwash
MosquitoBar
liquid 0.4%
16.6% 21.3%
2015 2016
Volume Value Volume Value
(in kl) ( H in lacs) (in kl) ( H in lacs)
Urban 8,490 1,18,744 8,980 1,31,003
0.8%
Rural 2,059 28,345 2,302 32,793
Total 10,549 1,47,090 11,282 1,63,796
10.1% 8.0%
6.1%
Dishwash
MosquitoBar
card
2015 2016 Maxo coil
Volume Value Volume Value Maxo LV
(in million no.) ( H in lacs) (in million no.) ( H in lacs) Maxo Magic Card
Urban 1,855 18,096 2,271 20,922 Exo Bar
Rural 1,284 12,304 1,674 16,013
Pril Bar
Total 3,139 30,400 3,945 36,935
Pril Liquid
Source: AC Neilsen (January - December) Exo Liquid

CSR ACTIVITIES
At Jyothy Laboratories, we are of the firm belief that business should go hand-in-hand with philanthrophy. We
take our corporate social responsibility seriously. At our Company, we are engaged in several foundation-building
activities to help grassroots development. In addition to dedicated efforts by our CSR team, we also encourage
our employees to invest time and effort in community development. This has enabled us to create strong
goodwill and favourable recall across communities.
Housing provided in adivasi areas and for fishermen in Trichur

EMPLOYEE
ENGAGEMENT
At Jyothy Laboratories, we believe in creating a happy, engaged, productive and loyal workforce. With a firm
belief that our human resources are our biggest asset, we organise employee engagement activities throughout
the year, marked by fun, games and outdoor engagement.

CORPORATE
INFORMATION
DIRECTORS COST AUDITORS
R. Nanabhoy & Co.
M. P. Ramachandran
(Firm Registration Number 000010)
Chairman & Managing Director
(DIN: 00553406)
REGISTERED OFFICE
K. Ullas Kamath Jyothy Laboratories Limited
Joint Managing Director & Chief Financial Officer Ujala House, Ramakrishna Mandir Road
(DIN: 00506681) Kondivita, Andheri East
Mumbai - 400059
M. R. Jyothy
Telephone: +91-22-66892800
Whole Time Director & Chief Marketing Officer
Fax: +91-22-66892805
(DIN: 00571828)
Email : [email protected]
Nilesh B. Mehta Website: www.jyothylaboratories.com
Independent Director
(DIN: 00199071) CORPORATE IDENTITY NUMBER (CIN)
K. P. Padmakumar L24240MH1992PLC128651
Independent Director
(DIN: 00023176) REGISTRAR & SHARE TRANSFER AGENT
Link Intime India Private Limited
R. Lakshminarayanan U67190MH1999PTC118368
Independent Director C 101, 247 Park, L B S Marg,
(DIN: 00238887) Vikhroli West, Mumbai – 400083
Tel.: +91-22-49186000
COMPANY SECRETARY Fax: +91-22-+91-22-49186060
Shreyas Trivedi Email: [email protected]
(M. No. A12739)
DEBENTURE TRUSTEE
STATUTORY AUDITORS Axis Trustee Services Limited
S R B C & Co LLP
CIN-U74999MH2008PLC182264
(Firm Registration No. 324982E/E300003)
Axis House, 2nd Floor,
Wadia International Centre,
INTERNAL AUDITORS
Pandurang Budhkar Marg,
Mahajan & Aibara Chartered Accountants LLP
Worli, Mumbai – 400 025
(Firm Registration No. 105742W)
Phone: 022 - 2425 5225 (D)
Website: www.axistrustee.com
SECRETARIAL AUDITORS
Rathi & Associates
Company Secretaries

STATUTORY
SECTION

DIRECTORS’ REPORT
Dear Members,
It is our pleasure to present the 26th Annual Report of your Company together with the Audited Financial Statements
for the financial year ended March 31, 2017.
FINANCIAL PERFORMANCE
Your Company’s financial performance on standalone basis for the year ended March 31, 2017 compared with
previous financial year is summarised below:
(H in Crore)
Particulars Financial Financial
Year ended Year ended
March 31, 2017 March 31, 2016
Gross Revenue from Operations 1698.16 1608.90
Other Income 4.24 11.74
Earnings before interest, tax, depreciation, amortization and 264.39 239.75
impairment
Interest & Finance Charges/(Income) Net 43.73 52.12
Depreciation and Amortization- Tangibles 23.38 23.08
Depreciation and Amortization- Intangibles 31.36 31.12
Profit before tax and Share of (profit)/loss of an associate and a joint 165.92 133.42
venture
Share of (profit)/loss of an associate and a joint venture (0.04) 0.07
Profit Before Tax 165.96 132.34
Provision for tax
- Current tax- (MAT) - 14.52
- Adjustment of Tax relating to earlier period 7.85 -
- Deferred Tax Charge (43.94) 44.30
Profit after tax 202.05 74.52
Earning Per Share (Basic) (In H) 11.12 4.12
Earning Per Share (Diluted) (In H) 11.12 4.06
Dividend Per Share of face value of H1/- (In H) 6.00 5.00
PERFORMANCE HIGHLIGHTS H1659.51 Crore in the previous year, reporting a growth

of 5.40%. The consolidated profit before tax was at
The gross revenue from operations (inclusive of excise
H178.65 Crore registering a growth of 24.84% over the
duty) on standalone basis of your Company for the
consolidated profit before tax of the previous financial
financial year 2016-17 grew by 5.55% and stood at
year. The consolidated profit after tax for the financial
H1698.16 Crore compared to H1,608.90 Crore in the
year under review stood at H204.15 Crore against profit
previous financial year. The profit before tax was at
after tax of H73.81 Crore in the previous financial year,
H165.96 Crore as against H133.34 Crore in the previous
reflecting a growth of 176.59%.
financial year, registering a growth of 24.46%. The
net profit for the financial year 2016-17 amounted
to H202.05 Crore compared to H74.52 Crore in the DIVIDEND
previous financial year, depicting a growth of 171.14%. The Board is pleased to recommend a dividend of H6/-
(Rupees Six) per Equity Share (i.e. @ 600% of face Value
The consolidated gross revenue from operations
of Equity Share of H1/- each) for the financial year ended
(inclusive of excise duty) of your Company for the
March 31, 2017. The aforesaid dividend will involve a
year under review stood at H1749.19 Crore as against
total payout of H131.20 Crore (inclusive of tax of H22.19

Crore) and is subject to the approval of Members at the Company Law Tribunal vide its Order dated March 1,
ensuing Annual General Meeting of your Company. 2017. The Appointed date for the above mentioned
amalgamation was April 1, 2016 which came into
During the previous financial year, your Company had
effect on March 17, 2017 after filing of certified copy
paid a total dividend of H5/- (Rupees Five) per Equity
of the Order of the Hon’ble Mumbai Bench of National
Share of H1/- each for the financial year 2015-16
Company Law Tribunal with the Registrar of Companies
including interim dividend of H4/- (Rupees Four) per
and/ or Ministry of Corporate Affairs.
Equity share of H1/- each involving total cash outflow
of H109.00 Crore (inclusive of tax of H18.44 Crore). Except as mentioned above, no Company has become
or ceased to be its subsidiaries, joint ventures or
DIVIDEND DISTRIBUTION POLICY associate companies during the financial year 2016-17.
Your Company has adopted a policy on Dividend
Distribution formulated in accordance with the DIRECTORS’ RESPONSIBILITY
Regulation 43A of the Securities and Exchange Board of STATEMENT
India (Listing Obligations and Disclosure Requirements) In terms of Section 134(5) of the Companies Act, 2013,
Regulations, 2015 (hereinafter referred to as ‘Listing in relation to the Audited Financial Statements of your
Regulations’), and the same is attached as annexure to Company for the financial year ended March 31, 2017,
this report and can be accessed from your Company’s the Board of Directors hereby confirms that:
website at the link: http://www.jyothylaboratories.
com/admin/docs/DIVIDEND%20DISTRIBUTION%20 a. in the preparation of the annual accounts for the
POLICY_JLL_FINAL.pdf financial year ended March 31, 2017, the applicable
accounting standards read with the requirements
set out under Schedule III to the Act, have been
TRANSFER TO RESERVES
followed and there were no material departures
Your Company did not transfer any sum to the General from the same;
Reserve for the financial year under review. However,
your Company has transferred a sum of H62.50 Crore b. your Directors have selected such accounting
(H45.60 Crore in the previous financial year) to the policies and applied them consistently and made
Debenture Redemption Reserve during the year under judgments and estimates that were reasonable and
review. prudent so as to give a true and fair view of the
state of affairs of your Company as at March 31,
CONSOLIDATED ACCOUNTS 2017 and of the profit of your Company for the
year ended on that date;
The consolidated financial statements of your
Company are prepared in accordance with the relevant c. your Directors have taken proper and sufficient
Indian Accounting Standards issued by the Central care for the maintenance of adequate accounting
Government under Section 133 of the Companies Act, records in accordance with the provisions of this
2013 and forms integral part of the Annual Report. Act for safeguarding the assets of your Company
and for preventing and detecting fraud and other
PERFORMANCE OF SUBSIDIARIES, irregularities;
ASSOCIATE COMPANIES/ JOINT d. your Directors have prepared annual accounts of
VENTURES your Company on a going concern basis;
A report on the performance and financial position of e. your Directors have laid down internal financial
each of the Subsidiaries, Associates and Joint Venture controls to be followed by your Company and that
Companies as per the Companies Act, 2013 is attached such internal financial controls are adequate and
as Annexure to this report and hence not repeated here are operating effectively; and
for the sake of brevity. Policy for determining material
f. your Directors have devised proper systems to
subsidiaries formulated and adopted by your Company
ensure compliance with the provisions of all
can be accessed from your Company’s website at the
applicable laws and that such systems are adequate
link: http://www.jyothylaboratories.com/admin/docs/
and operating effectively.
PMS_JLL_Website.pdf
During the year under review, Jyothy Consumer MANAGEMENT DISCUSSION & ANALYSIS
Products Marketing Limited - JCPML (Wholly Owned
REPORT
Subsidiary of your Company) amalgamated with your
Company pursuant to the Scheme of Amalgamation In terms of the provisions of Regulation 34(2) of the
sanctioned by the Hon’ble Mumbai Bench of National Listing Regulations, the Management Discussion &

Analysis Report is attached and forms an integral part redeemed 4000 Zero Coupon Secured Redeemable
of this Report. Non-Convertible Debentures of H10,00,000/- each
aggregating to H400 Crores on November 11, 2016 at
ISSUE OF SHARES an aggregate redemption premium of H146.73 Crores.
Issue of Equity Shares with differential rights Further, your Company during the year under review
During the year under review and to date, your Company has also raised H400 Crores through private placement
has not issued any shares with differential rights, hence of 4000 Secured Rated Unlisted Redeemable Non-
no information prescribed under provisions of Section Convertible Debentures of face value of H10,00,000/-
43(a)(ii) of the Companies Act, 2013 read with Rule 4(4) each on December 9, 2016 to refinance its existing
of the Companies (Share Capital & Debentures) Rules, debt.
2014 has been furnished.
CORPORATE GOVERNANCE
Issue of Sweat Equity Shares The report on Corporate Governance as stipulated
During the year under review and to date, your under Regulation 34(3) read with Schedule V of the
Company has not issued any sweat equity shares. Listing Regulations together with the Certificate
Hence no information as per the provisions of Section received from your Company’s Statutory Auditors
54(1)(d) of the Companies Act, 2013 read with Rule confirming compliance of Corporate Governance
8(13) of the Companies (Share Capital & Debentures) requirements is attached and forms an integral part of
Rules, 2014 is furnished. this report.
Issue of Employee Stock Option BUSINESS RESPONSIBILITY REPORT

During the year under review, your Company in terms The Securities and Exchange Board of India (SEBI),
of the provisions of Section 62(1)(b) read with Section vide amendment to Regulation 34(2)(f) of the Listing
39 of the Companies Act, 2013 has issued and allotted Regulations dated December 22, 2015, had extended
4,52,558 (Four Lacs Fifty Two Thousand Five Hundred the applicability of Business Responsibility Reports
and Fifty Eight) Equity Shares of H1/- each to Mr. S. to top 500 listed companies based on market
Raghunandan under “Jyothy Laboratories Employees capitalization. Earlier, the requirement of Business
Stock Option Scheme 2014-A” (ESOS 2014-A) and Responsibility Report was applicable only to Top
1,11,486 (One Lac Eleven Thousand Four Hundred and 100 Listed entities based on market capitalization.
Eighty Six) Equity Shares of H1/- each to other eligible As a result, your Company being one of the top 500
employees under “Jyothy Laboratories Employees listed Companies is required to report on Business
Stock Option Scheme 2014” (ESOS 2014) respectively Responsibility. Accordingly, the report on Business
as approved by Members of your Company at the 23rd Responsibility is attached as annexure and forms an
Annual General Meeting held on August 13, 2014. integral part of this report.
INCREASE IN SHARE CAPITAL RELATED PARTY TRANSACTIONS

During the year under review, pursuant to the Scheme Particulars of contracts or arrangements with related
of Amalgamation of Jyothy Consumer Products parties referred to in Section 188(1) of the Companies
Marketing Limited into your Company, the Authorised Act, 2013, in the prescribed form AOC-2 is appended as
Share Capital of your Company has increased to Annexure to the Board’s report. During the year, your
H2,72,30,00,000 consisting of: (a) 2,72,00,00,000 Equity Company had entered into contract / arrangement /
Shares of the face value of H1/- each and (b) 30,000 11% transaction with related parties which were on arm’s
Cumulative Redeemable Preference Shares of the face length basis and none of which could be considered
value of H100/- each. as material in accordance with the policy of your
Further, after the issue of 5,64,044 Equity Shares under Company on materiality of related party transactions.
ESOS 2014 and ESOS 2014-A, the Paid up Equity Further none of the contract/ arrangement/ transaction
Share Capital of your Company stands increased to with related parties required approval of shareholders
H18,16,83,724 consisting of 18,16,83,724 equity shares as the same were within the limits prescribed under
of your Company of H1/- each fully paid-up. Section 188(1) of the Companies Act, 2013 and the
Rules framed thereunder.
DEBENTURES The Policy on materiality of related party transactions
During the year under review, your Company and dealing with related party transactions as approved

by the Board may be accessed from your Company’s INTERNAL FINANCIAL CONTROLS
website at the link: http://www.jyothylaboratories.
The Internal Financial Controls adopted and followed
com/admin/docs/RPT_JLL_Website.pdf
by your Company are adequate and are operating
Attention of Members is also drawn to Note 35 to the effectively. Your Company has adopted a dynamic
financial statements for the year ended March 31, 2017 Internal Financial Controls framework formulated
which sets out the related party disclosures as per the by Ernst & Young, LLP based on the best practices
Indian Accounting Standard (Ind AS) 24. followed in the industry. Under the said framework,
Risk and Control Matrix are defined for the following
CORPORATE SOCIAL RESPONSIBILITY process(es):-
(CSR) 1. Fixed Assets;
Your Company has been a firm believer that each 2. Financial Statement Closing Process;
and every individual including an artificial person 3. Information Technology;
owe something to the society at large. Mr. M. P. 4. Inventory Management;
Ramachandran, Chairman & Managing Director of 5. Marketing and Advertising;
your Company even before the inception of Corporate 6. Order to Cash;
Social Responsibility provisions under the Companies 7. Payroll;
Act, 2013, has been involved in charitable and social 8. Production Process;
activities in his individual capacity. 9. Purchase to Pay;
10. Taxation;
Your Company has undertaken projects in the area
11. Treasury.
of skill development, promotion of education and
rural development as part of its CSR initiative. These During the year under review, no material or serious
projects were in accordance with Schedule VII to the observations has been received from the Internal
Companies Act, 2013 and the CSR policy framed by Auditors of your Company regarding inefficiency or
your Company. The report on CSR activities as required inadequacy of such controls.
under the Companies (Corporate Social Responsibility
Policy) Rules, 2014 is appended as annexure and forms CHANGE IN NATURE OF BUSINESS
an integral part of this report. During the year under review, there was no change in
Details about the CSR Policy adopted and formulated by the nature of business of your Company.
your Company can be accessed from your Company’s
website at the link: http://www.jyothylaboratories. SIGNIFICANT AND MATERIAL ORDERS
com/admin/docs/JLL_CSR%20Policy_Website.pdf PASSED BY THE REGULATORS OR
Your Company was required to spend H294.10 lacs (2% COURTS
of the average net profits of last three financial years) There are no significant and material orders passed
on CSR activities during the financial year 2016-17. by any Regulator/ Court that would impact the
Accordingly, your Company spent H238.37 lacs on CSR going concern status of your Company and its future
activities during the year 2016-17 and an amount of operations.
H55.73 lacs stands committed towards contribution for
skill development etc. and the same will be expended REMUNERATION/ COMMISSION FROM
in the current financial year. Further an amount of ANY OF ITS SUBSIDIARIES
H6.06 lacs pertaining to financial year 2015-16 was
During the year under review, neither the Managing
spent towards housing in adivasi area of Trichur District,
Director nor the Whole Time Directors of your
Kerala in the financial year 2016-17.
Company received any remuneration or commission
from any of its Subsidiaries.
MATERIAL CHANGES AND
COMMITMENTS PARTICULARS OF LOANS, GUARANTEES
Except as disclosed elsewhere in this report, no material AND INVESTMENTS
changes and commitments which could affect your
The details of Loans, Guarantees and Investments as
Company’s financial position have occurred between
prescribed under Section 186 of the Companies Act,
the end of the financial year 2016-17 and date of this
2013 are appended as Annexure and forms integral part
report.
of this report.

EMPLOYEE STOCK OPTION SCHEME (ESOS)
Your Company has adopted Jyothy Laboratories Employee Stock Option Scheme 2014 -A (“ESOS 2014-A”) for
granting of options to Mr. S. Raghunandan, Whole Time Director and Chief Executive Officer of your Company
(relinquished the office of Whole Time Director and Chief Executive Officer of the Company w.e.f. May 23, 2016)
and Jyothy Laboratories Employee Stock Option Scheme 2014 (“ESOS 2014”) for granting of options to other
eligible employees of your Company as approved by the Members of your Company at the 23rd Annual General
Meeting held on August 13, 2014.
Disclosure as required under Section 62(1)(b) of the Companies Act, 2013 read with Rule 12(9) of the Companies
(Share Capital and Debenture) Rules, 2014 and Regulation 14 of the Securities Exchange Board of India (Share
Based Employee Benefits) Regulation, 2014 are furnished below:
Jyothy Laboratories Jyothy Laboratories

Employee Stock Employee Stock
Option Scheme 2014- Option Scheme 2014
A (“ESOS 2014-A”) (“ESOS 2014”)
1 Date of Shareholders’ approval August 13, 2014 August 13, 2014
2 Total number of options approved under ESOS 27,15,352 27,15,352
3 Vesting Requirements Options granted Options granted under
under ESOS 2014- ESOS 2014 would Vest
A would Vest after after one year but not
one year but not later later than four years
than four years from from the date of grant
the date of grant of of such options. Vesting
such options. Vesting of options would be
of options would be subject to continued
subject to continued employment with
employment with the Company and
the Company and certain performance
certain performance parameters
parameters.
4 Exercise price or pricing formula H1 per option H1 per option
5 Maximum term of options granted 5 years 5 years
6 Source of shares Primary Primary
7 Variation in terms of option No variation in the No variation in the
terms of option terms of the option
8 Method of Option Valuation Intrinsic Value Intrinsic Value
9 Option Movement during the year
Number of Options outstanding at the beginning of the 22,62,793 3,00,804
period
Number of options granted during the year - -
Number of options forfeited/ lapsed during the year - 54,181
Number of options vested during the year 4,52,558 1,11,486
Number of options exercised during the year 4,52,558 1,11,486
Number of shares arising as a result of exercise of options 4,52,558 1,11,486
Money realized by exercise of options (Amount in H) 4,52,558 1,11,486
Loan repaid by the Trust during the year from exercise N.A. N.A.
price received
Number of Options outstanding at the end of the year 18,10,235 1,35,137
Number of options exercisable at the end of the year 18,10,235 1,35,137
10 Employee Wise details of Options Granted
i. Senior Managerial Personnel
Name Designation Options Granted Exercise Price
during the Year
None - - -

Jyothy Laboratories Jyothy Laboratories

Employee Stock Employee Stock
Option Scheme 2014- Option Scheme 2014
A (“ESOS 2014-A”) (“ESOS 2014”)
ii. any other employee who receives a grant in any one year of option amounting to 5% or more of option
granted during the year; and
during the Year
None - - -
iii. identified employees who were granted option, during any one year, equal to or exceeding 1% of the
issued capital (excluding outstanding warrants and conversations) of the company at the time of grant.
during any one Year
Mr. S. Raghunandan Whole Time Director & 27,15,352# H1/- per Option
Chief Executive Officer*
*Ceased to be Whole Time Director and Chief Executive Officer of the Company and re-designated as President
of the Company w.e.f. May 23, 2016.
# Options Granted to Mr. S. Raghunandan during the financial year 2014-15.
Note: Other details as required under Regulation 14 of the Securities Exchange Board of India (Share Based
Employee Benefits) Regulations, 2014 read with SEBI circular bearing number CIR/CFD/POLICY CELL/2/2015 dated
June 16, 2015 forms part of the Notes to Accounts of the Financial Statements in the Annual Report.
Further, the aforesaid details are also available on your Company’s website at the link: http://www.jyothylaboratories.
com/admin/docs/ESOP_Reg.%2014.pdf
The certificate from the Statutory Auditors in respect of implementation of Jyothy Laboratories Employee Stock
Option Scheme 2014-A (“ESOS 2014-A”) and Jyothy Laboratories Employee Stock Option Scheme 2014 (“ESOS
2014”) in accordance with the resolution passed by the Members at the 23rd Annual General Meeting of your
Company held on August 13, 2014, shall be placed at the ensuing Annual General Meeting for inspection by
Members.
DIRECTORS AND KEY MANAGERIAL PERSONNEL

In accordance with the provisions of the Companies Act, 2013 and the Article 140 of the Articles of Association
of your Company, Ms. M. R. Jyothy, Whole Time Director and Chief Marketing Officer of your Company retires by
rotation at the ensuing Annual General Meeting and being eligible, offers herself for re-appointment.
During the year under review, the members approved re-appointment of Mr. M. P. Ramachandran as the Chairman
and Managing Director of your Company for a term of five years with effect from August 22, 2016 to August 21,
2021 at the 25th Annual General Meeting of your Company held on July 21, 2016 by passing special resolution.
Further, the members have also approved re-appointment of Mr. K. Ullas Kamath as the Joint Managing Director
and Chief Financial Officer of your Company for a term of five years with effect from January 23, 2017 to January
22, 2022 and Ms. M. R. Jyothy as the Whole Time Director and Chief Marketing Officer of your Company for a term
of five years with effect from January 1, 2017 to December 31, 2021 through Postal Ballot dated December 1, 2016.
Mr. Bipin R. Shah resigned as the Independent Director of your Company with effect from August 11, 2016. The
Board placed on record, its appreciation for the contribution made by Mr. Shah during his tenure as the Independent
Director.
All Independent Directors have given declarations that they meet the criteria of Independence as laid down under
Section 149(6) of the Companies Act, 2013.
POLICY ON DIRECTORS APPOINTMENT AND REMUNERATION

The Board in accordance with the provisions of sub-section (3) of Section 178 of the Companies Act, 2013,
formulated the policy setting out the criteria for determining qualifications, positive attributes, independence of a
Director and remuneration for Directors, Key Managerial Personnel and other employees.

Major criteria defined in the Policy framed for of his practice/ profession/ service and shall have
appointment of the Directors including criteria not less than five years of working experience in
for determining qualifications, positive attributes, such field as a professional in practice, advisor,
Independence etc. are as under: consultant or as an employee. Provided that the
Board may waive the requirements of qualification
(I) Selection and/ or experience under this paragraph for a
In case of Executive Directors and Key Managerial deserving candidate.
Personnel, the selection can be made either by d) The Board, while making the appointment of
recruitment from outside or from within your a Director, shall also try to assess from the
Company hierarchy or upon recommendation by the information available and from the interaction with
Chairman or other Directors. The appointment may be the candidate that he is a fair achiever in his chosen
made either to fill up a vacancy caused by retirement, field and that he is a person with integrity, diligence
resignation, death or removal of an existing Executive and open mind.
Director and Key Managerial Personnel or it may be a
fresh appointment. (III) Board Diversity and Independence
In case of Non-Executive Directors, the selection can While making appointment of directors, following
be made either by way of selection from the data principles shall be observed by the Board, as far as
bank of Independent Directors maintained by the practicable:
Government of India or upon recommendation by the
a) There shall be a proper mix of Executive and
Chairman or other Directors. The appointment may be
Non-Executive Directors and Independent and
made either to fill up a vacancy caused by resignation,
Non-Independent Directors on the Board. Your
death or removal of an existing Non-Executive Director
Company must always be in compliance of the
or it may be an appointment as an additional director or
provisions of Section 149 of the Companies Act,
an alternate director.
2013 and Clause 17 of the Listing Regulations, as
amended from time to time, in this regard.
(II) Qualifications, Experience and Positive
Attributes b) There shall be a workable mix of directors drawn
a) While appointing a Director, it has to be ensured from various disciplines, like technical, finance,
that the candidate possesses appropriate skills, commercial, legal etc. The Board shall not at any
experience and knowledge in one or more fields time be entirely comprised of persons drawn from
of finance, law, management, sales, marketing, one discipline or field.
administration, research, corporate governance, c) While appointing a director to fill in a casual
technical operations or other disciplines related to vacancy caused by death, resignation etc. of a
your Company’s business. director, an effort shall be made, as far as possible,
b) In case of appointment as an Executive Director, to appoint such a person in his place who has the
the candidate must have the relevant technical or relevant experience in the fields or disciplines in
professional qualifications and experience as are which the outgoing director had the experience or
considered necessary based on the job description the person with relevant experience in the fields or
of the position. In case no specific qualification disciplines which are not represented in the Board
or experience is prescribed or thought necessary as requisite to business of your Company.
for the position then, while recommending the d) No preference on the basis of gender, religion
appointment, the Human Resource Department or cast shall be given while considering the
shall provide the job description to the Committee appointment of directors.
and justify that the qualifications, experience
and expertise of the recommended candidate e) Generally, an effort shall be made to maintain the
are satisfactory for the relevant appointment. In Board diversity by appointment of persons from
such circumstances, the Committee may call for diverse disciplines (relevant to your Company’s
an expert opinion on the appropriateness of the business), of different age groups and of both the
qualifications and experience of the candidate for genders (male as well as female) as Directors.
the position of the Executive Director. f) While appointing Independent Directors, the
c) In case of appointment as a Non-Executive Director, criteria for the independent directors, as laid down
the candidate must have a post graduate degree, in Section 149 (6) of the Companies Act, 2013 and
diploma or a professional qualification in the field Listing Regulations are followed.

REMUNERATION POLICY review, one meeting of Independent Director was held

on May 23, 2016.
Your Company follows the policy on Remuneration
of Directors and Senior Management Employees
as approved by the Nomination, Remuneration BOARD MEETINGS
and Compensation Committee and the Board. A The Board of Directors met 6 times during the financial
detailed report on the same is given in the Corporate year ended March 31, 2017 in accordance with the
Governance Report. provisions of the Companies Act, 2013 and the Rules
made thereunder.
PERFORMANCE EVALUATION The dates on which the Board of Directors met during
In accordance with the Companies Act, 2013 and the financial year under review are provided in the
Regulation 4(2)(f) of the Listing Regulations, your Corporate Governance Report.
Company has framed a Policy for Evaluation of
Performance of Independent Directors, Board, AUDIT COMMITTEE
Committees and other Individual Directors which
The Audit Committee of your Company consists of
includes criteria for performance evaluation of
all Independent Directors and Mr. K. Ulass Kamath,
Non-Executive Directors and Executive Directors.
Joint Managing Director and Chief Financial Officer of
A questionnaire is formulated for evaluation of
your Company. The detailed composition of the Audit
performance of the Board after taking into consideration
Committee is provided in the Corporate Governance
several aspects such as board composition, strategic
Report. All the recommendations made by the Audit
orientation, board functioning and team dynamics.
Committee were accepted by the Board.
Performance evaluation of Independent Directors was
conducted by the Board of Directors, excluding the VIGIL MECHANISM/ WHISTLE BLOWER
Director being evaluated. The criteria for performance POLICY
evaluation of Independent Directors laid down by
Your Company has a Vigil Mechanism in place which
the Nomination, Remuneration and Compensation
includes a Whistle Blower Policy in terms of the Listing
Committee include ethics and values, knowledge and
Regulations for Directors and employees of your
proficiency, diligence, behavioral traits and efforts for
Company to provide a mechanism which ensures
personal development.
adequate safeguards to Employees and Directors
Similarly, performance evaluation of the Chairman and from any victimization on raising of concerns of any
Non – Independent Directors was carried out by the violations of legal or regulatory requirements, incorrect
Independent Directors. Your Directors also expressed or misrepresentation of any financial statements and
their satisfaction with the evaluation process. reports etc.
The Vigil Mechanism/ Whistle Blower Policy of your
TRAINING OF INDEPENDENT DIRECTORS Company can be accessed from your Company’s
All Independent Directors are familiarized with your website at the link:
Company, their roles, rights and responsibilities
in your Company, nature of the industry in which
http://www.jyothylaboratories.com/admin/docs/
your Company operates, business model, strategy,
JLL_Vigil%20Mechanism%20Policy_amended_
operations and functions of your Company through
Final_28012016.pdf
its Executive Directors and Senior Managerial
Personnel. The details of programs for familiarization The Whistle Blowers have a right/option to report
of Independent Directors with your Company are their concerns about unethical behaviour, actual or
available on the website of your Company at the link: suspected fraud or violation of the Codes of conduct or
policy directly to the Chairman of the Audit Committee.
During the year under review, no protected disclosure
Familiarisation%20Programme_JLL_2016-17.pdf
from any Whistle Blower was received by the designated
officer under the Vigil Mechanism.
MEETING OF INDEPENDENT DIRECTORS
Your Company’s Independent Directors meet at least RISK MANAGEMENT
once in every financial year without the presence of the
The Board of Directors of your Company has designed
Executive Directors or Management Personnel and the
a Risk Management Policy in a structured manner taking
meeting is conducted informally. During the year under

into consideration the following factors and the same AUDITORS & AUDIT REPORTS
is monitored on a periodic basis by your Company :
Statutory Auditors and their Report
1. The Management Approach; The present Statutory Auditors of your Company,
2. JLL’s Vision & Mission; M/s S R B C & Co LLP, Chartered Accountants (ICAI
Registration No. 324982E/ E300003) have served as
3. Key Business Goals; Statutory Auditors of your Company for a period more
4. Risk Library; than two terms of five consecutive years as provided
under Section 139(2) of the Companies Act, 2013
5. Risk Management Focus. and will hold office till the conclusion of 26th Annual
Also, the Management has adopted the following 5 General Meeting (AGM) of your Company.
step approach keeping in view your Company’s Vision Therefore, the Board upon recommendation of
and Mission: the Audit Committee, proposed appointment of
• Identifying ‘Key’ Business goals; M/s B S R & Co. LLP, Chartered Accountants in place
of M/s S R B C & Co LLP, Chartered Accountants, the
• Identifying the Risk Management focus;
retiring Auditors, as the Statutory Auditors, who shall
• Identifying Business risks; hold the office from the conclusion of the 26th Annual
• Prioritizing the identified business risks; General Meeting for a term of five consecutive years,
• Rating the current risk management capability for i.e. until the conclusion of the 31st Annual General
identified risks. Meeting subject to ratification by the members at
27th, 28th, 29th and 30th Annual General Meeting to be
Further, your Company identified Key Business Goals
held in the financial year 2018, 2019, 2020 and 2021
for a five year horizon and a library of risk events which
respectively. Further, Special Notice under Section 115
could be bottleneck in achieving the same. After
read with Section 140(4) of the Companies Act, 2013
defining the key business goals and the library of risk
is not required as the retiring Auditor has completed
events, your Company identified the goals on which
a consecutive tenure of ten years as provided under
the management would focus.
Section 139(2) of the Companies Act, 2013.
INTERNAL CONTROL SYSTEMS A certificate has been received from M/s B S R & Co.
LLP, Chartered Accountants to the effect that they
Your Company has adequate internal control systems
are eligible for appointment and if made would be, as
and procedures in place for effective and smooth
per the provisions of Section 141 of the Companies
conduct of business and to meet exigencies of
Act, 2013 read with Section 139 ibid and rules made
operations and growth. Your Company has set up
thereunder.
Standard Operating Process (SOP), procedures and
controls apart from regular Internal Audits. Roles and The Board placed on record its appreciation for the
responsibilities have been laid down for each process services rendered by M/s S R B C & Co LLP Chartered
owners. Management Information System has been Accountants, Mumbai, as Statutory Auditors of your
established which ensure that adequate and accurate Company.
information is available for reporting and decision
The Notes on financial statement referred to in the
making.
Auditors’ Report are self-explanatory and do not call for
Internal Audit is conducted by an independent firm any further comments. The Auditors’ Report does not
of Chartered Accountants viz, M/s Mahajan & Aibara contain any qualification, reservation or any adverse
Chartered Accountants LLP. Internal Auditors regularly remark.
check the adequacy of the system, their observations
are reviewed by the management and remedial Cost Auditors and their Report
measures, as necessary, are taken. Internal Auditors As per section 148 of the Companies Act, 2013 read
report directly to the Chairman of the Audit Committee with the Companies (Cost Records and Audits) Rules,
to maintain its objectivity and independence. 2014, as amended, the Board of Directors of your
Your Company has also in place a ‘Complaince Tool’ Company on recommendation of the Audit Committee
designed and implemented by Ernst & Young, LLP appointed M/s R. Nanabhoy & Co., Cost Accountants,
which ensures compliance with the provisions of all Mumbai (Registration No. 000010) as the Cost Auditors
applicable laws to your Company adequately and to carry out the cost audit of its products covered
efficiently. under the Ministry of Corporate Affairs Order dated

June 30, 2014 (as amended on December 31, 2014) for Ministry of Corporate Affairs on September 7, 2016 and
the financial year 2017-18. The remuneration of Cost subsequently amended vide notification dated February
Auditors has been approved by the Board of Directors 28, 2017, all the Equity Shares of the Company in
on the recommendation of Audit Committee and the respect of which dividend amounts have not been paid
requisite resolution for ratification of remuneration or claimed by the shareholders for seven consecutive
of Cost Auditors by the members has been set out in years or more are required to be transferred to demat
the Notice of the 26th Annual General Meeting of your account of Investor Education and Protection Fund
Company. Authority (IEPF Account).
The appointment of M/s R. Nanabhoy & Co., Cost Accordingly, 1322 shares of your Company belonging
Accountants, Mumbai as the Cost Auditors of your to 28 Shareholders would be due for transfer to IEPF
Company is within the prescribed limits of the Account on May 31, 2017. Your Company has sent
Companies Act, 2013 and free from any disqualifications individual notices to all the aforesaid 28 shareholders
specified thereunder. Your Company has received the of your Company and has also published the notice in
Certificate from the Cost an Auditors confirming their the leading English and Marathi newspaper. The details
independence and relationship on arm’s length basis. of the aforesaid 28 shareholders are available on the
website of your Company viz., www.jyothylaboratories.
The Cost Audit Report for the financial year ended
com.
31st March 2016, issued by M/s R. Nanabhoy & Co.,
Cost Auditors, in respect of the various products Further, pursuant to the provisions of Section 124(5) of
prescribed under Cost Audit Rules does not contain the Companies Act, 2013, the dividend which remained
any qualification, reservation or adverse remark and the unclaimed/ unpaid for a period of seven years from
same was filed with the Ministry of Corporate Affairs the date of transfer to unpaid dividend account is
on September 9, 2016. The Cost Audit Report for the required to be transferred to the Investor Education
financial year ended March 31, 2017 is being submitted and Protection Fund (IEPF) established by the Central
shortly. Government.
As a result, the unclaimed/ unpaid dividend for the year
Secretarial Auditors and their Report
2008-09 which remained unpaid and unclaimed for a
In terms of Section 204 of the Companies Act, 2013, the period of 7 years has already been transferred by your
Board had appointed M/s Rathi & Associates, Company Company to the IEPF.
Secretaries, Mumbai as the Secretarial Auditors of
your Company to carry out Secretarial Audit for the Your Company has uploaded the details of unclaimed/
financial year 2016-17. The report of the Secretarial unpaid dividend for the financial year 2009-10 onwards
Auditors in the prescribed form MR-3 is appended as on its website viz., www.jyothylaboratories.com and
annexure to this report. The report does not contain on website of the Ministry of Corporate Affairs viz.,
any qualification, reservation or adverse remark which www.mca.gov.in and the same gets revised/ updated
calls for any explanation from the Board of Directors. from time to time pursuant to the provisions of IEPF
(Uploading of Information Regarding Unpaid and
Your Board has decided to appoint M/s Rathi & Unclaimed Amount Lying with Companies) Rules, 2012.
Associates, Company Secretaries, Mumbai as the
Secretarial Auditors of your Company for the financial Further, the unpaid dividend amount pertaining to the
year 2017-18, based on the recommendations of the financial year 2009-10 will be transferred to IEPF during
Audit Committee. the Financial Year 2017-18.
INSTANCES OF FRAUD, IF ANY REPORTED EXTRACT OF ANNUAL RETURN

BY THE AUDITORS The Extract of Annual Return as prescribed under
Section 92(3) of the Companies Act, 2013 read with
There have been no instances of any fraud reported
Rule 12(1) of the Companies (Management and
by the Statutory Auditors under Section 143(12) of the
Administration) Rules, 2014 is appended as annexure to
Companies Act, 2013.
this Report.
TRANSFER TO INVESTOR EDUCATION

EMPLOYEE RELATIONS
AND PROTECTION FUND
Your Company has always provided a congenial
Pursuant to the provisions of Section 124(6) of the
atmosphere for work to all its employees that is free
Companies Act, 2013 and the Investor Education
from discrimination and harassment. Employee
and Protection Fund Authority (Accounting, Audit,
relations remained cordial during the year under review.
Transfer and Refund) Rules, 2016 notified by the

MANUFACTURING FACILITIES as below:
Your Company has state-of-the-art facilities at all (H in Crore)
of its manufacturing locations spread across India.
Particulars 2016-17 2015-16
Furthermore, five manufacturing plants of your
Foreign exchange earnings 13.30 12.29
Company situated at Roorkee, Wayanad, Jammu,
Pithampur, Puducherry and Baddi are ISO 9001:2015 Foreign exchange outgo 37.80 26.92
certified.
PARTICULARS OF EMPLOYEES
PREVENTION OF SEXUAL HARASSMENT The disclosures pertaining to remuneration and
Your Company has framed ‘Anti – Sexual Harassment other details as required under Section 197(12) of
Policy’ at workplace and has constituted an Internal the Companies Act, 2013, read with Rule 5(1) of the
Complaints Committee (ICC) as per the requirement Companies (Appointment and Remuneration of
of Sexual Harassment of Women at Workplace Managerial Personnel) Amendment Rules, 2016 and
(Prevention, Prohibition and Redressal) Act, 2013 and forming part of the Directors’ Report for the year ended
the Rules framed thereunder. No complaints with March 31, 2017 is given in a separate Annexure to this
allegations of any sexual harassment were reported Report.
during the year under review.
CAUTIONARY NOTE
FIXED DEPOSITS Certain statements in the “Management Discussion
Your Company did not accept/ renew any fixed deposits and Analysis” section may be ‘forward-looking’. Such
from public and no fixed deposits were outstanding or ‘forward looking’ statements are subject to risks and
remained unclaimed as on March 31, 2017. uncertainties and therefore actual results could be
different from what your Directors envisage in terms of
CONSERVATION OF ENERGY & future performance and outlook.
TECHNOLOGY ABSORPTION
ACKNOWLEDGEMENT
With regard to the requirements of conservation of
energy and technology absorption pursuant to the Your Directors express their sincere appreciation for
provision of Section 134 of the Companies Act, 2013, the contribution and commitment of the employees of
read with the Companies (Accounts) Rules, 2014, your your Company at all levels and for the excellent support
Company has nothing specific to report. provided by shareholders, customers, distributors,
suppliers, bankers, media and other Stakeholders,
during the financial year under review. Your Company
FOREIGN EXCHANGE EARNINGS AND
looks forward to continued and unstinted support in
OUTGO its endeavor to make lives of consumers better by
The details of foreign exchange earnings and outgo are providing world class products at affordable price.
For and on behalf of the Board of Directors

For Jyothy Laboratories Limited
Sd/-
M. P. Ramachandran
(DIN: 00553406)
Mumbai, May 18, 2017

FORM AOC - I
STATEMENT CONTAINING THE SALIENT FEATURES OF THE FINANCIAL STATEMENT OF SUBSIDIARIES /
ASSOCIATES / JOINT VENTURES.
(Pursuant to first proviso to sub-section (3) of Section 129 of the Companies Act, 2013 read with Rule 5 of the
Companies (Accounts) Rules, 2014)
Part “ A”: Subsidiaries

(H in Lacs)
Sr. Name of the Subsidiary Company Jyothy Jyothy Kallol Snoways Four Seasons
No Fabricare Bangladesh Laundrers and Dry Cleaning
Services Limited Drycleaners Company
Limited Pvt. Ltd # Private Limited
#
Country India Bangladesh India India
Financial Year / Period April 1, 2016 to April 1, 2016 to April 1, 2016 to April 1, 2016 to
March 31, 2017 March 31, 2017 March 31, 2017 March 31, 2017
Local Currency INR BDT INR INR
Exchange rate as on March 31, 2017 - 1BDT = 0.79 - -
INR
1 Share Capital 2,385.00 801.84 100.00 220.70
2 Reserves & Surplus (896.56) (127.86) (10.00) (471.99)
3 Total Assets 7,140.67 698.04 97.91 19.71
4 Total Liabilities 5,652.23 24.06 7.91 271.00
5 Details of Investment (except 1,437.73 0.00 0.00 0.00
investment in subsidiaries)
6 Turnover (Net) 3,488.31 701.73 0.00 195.96
7 Profit / (Loss) before taxation (1,826.63) (9.04) (0.55) (29.69)
8 Provision for taxation 0.00 4.34 0.00 0.00
9 Profit / ( Loss) after taxation (1,826.63) (13.39) (0.55) (29.69)
10 Proposed / Interim Dividend Nil Nil Nil Nil
11 % of shareholding 86.37% 75.00% 42.32% 86.37%
# Snoways Laundrers and Drycleaners Pvt. Limited and Four Seasons Dry-Cleaning Co. Pvt. Limited are
subsidiaries of Jyothy Fabricare Services Limited.
Notes:
1. None of the subsidiaries of your Company are yet to commence operations.
2. None of the subsidiaries have been liquidated or sold during the year under review. However, during the
financial year 2016-17, Jyothy Consumer Products Marketing Limited, Wholly Owned Subsidiary of your
Company amalgamated with your Company with appointed date as April 1, 2016, vide Order of the Mumbai
Bench of Hon’ble National Company Law Tribunal dated March 1, 2017.

Part ‘’B”: Associates and Joint Ventures
Statement pursuant to Section 129 (3) of the Companies Act, 2013 related to Associate Companies and Joint
Ventures
(H in Lacs)
Name of Joint Venture JFSL – JLL JV
(Partnership firm)
Latest audited Balance Sheet Date March 31, 2017
Shares of Associate/Joint Ventures held by the company on the year end:
1. No. N.A.
2. Amount of Investment in Joint Venture 84.93
3. Extent of Holding (%) 25%
Description of how there is significant influence Control of Business
decisions under an
Agreement
Reason why the joint venture is not consolidated N.A
Networth attributable to Shareholding as per latest audited Balance Sheet 276.28
Profit/(Loss) for the year 14.72
i. Considered in Consolidation 14.72
ii Not Considered in Consolidation -
1. None of the associates or joint ventures of your Company are yet to commence operations.
2. None of the associates or joint ventures of your Company have been liquidated or sold during the year under
review.
3. Your Company does not have any associate company.

Sd/- Sd/-
M.P. Ramachandran K. Ullas Kamath
Chairman and Managing Director Joint Managing Director and Chief Financial Officer
DIN: 00553406 DIN: 00506681
Sd/-
Shreyas Trivedi
Head – Legal & Company Secretary
Membership No.: A12739
Place: Mumbai
May 18, 2017

FORM AOC - 2
PARTICULARS OF CONTRACTS/ ARRANGEMENTS MADE WITH RELATED PARTIES
[Pursuant to clause (h) of sub-section (3) of section 134 of the Companies Act, 2013 and Rule 8(2) of the
Companies (Accounts) Rules, 2014]
1. Details of Contracts or arrangements or transactions not at arm’s length basis:
(a) Name(s) of the related party and nature of relationship

(b) Nature of contracts/arrangements/transactions
(c) Duration of the contracts / arrangements/transactions
(d) Salient terms of the contracts or arrangements or transactions including the value, if any
(e) Justification for entering into such contracts or arrangements or transactions NIL
(f) Date(s) of approval by the Board
(g) Amount paid as advances, if any
(h) Date on which the special resolution was passed in general meeting as required under first
proviso to Section 188
2. Details of material Contracts or arrangements or transactions at arm’s length basis:
(a) Name(s) of the related party and nature of relationship

(b) Nature of contracts/arrangements/transactions
(c) Duration of the contracts / arrangements/transactions
NIL
(d) Salient terms of the contracts or arrangements or transactions including the value, if any
(e) Date(s) of approval by the Board
(f) Amount paid as advances, if any

Sd/-
M.P. Ramachandran
Chairman and Managing Director
DIN: 00553406
Place: Mumbai
May 18, 2017

ANNUAL REPORT ON CSR ACTIVITIES
1. A brief outline of the Company’s CSR policy, including overview of projects or programs proposed to be
undertaken and a reference to the web-link to the CSR policy and projects or programs.
The Company has framed a CSR Policy in compliance with the provisions of the Companies Act, 2013 and the
same is uploaded on the Company’s website and can be accessed at the web link provided below:
http://www.jyothylaboratories.com/admin/docs/JLL_CSR%20Policy_Website.pdf
The Company has undertaken projects in the area of skill development, promotion of education and rural
development as a part of its CSR Initiative for the financial year 2016-17. The activities and funding are
monitored by the Corporate Social Responsibility Committee of the Company. The Company has identified
the following fields of operation for spending of expenditure towards CSR:
i) eradicating hunger, poverty and malnutrition, promoting preventive health care including sanitation
and more particularly contribution to the Swach Bharat Kosh set-up by the Central Government for the
promotion of sanitation and making available safe drinking water;
ii) promoting education, including special education and employment enhancing vocation skills especially
among children, women, elderly and the differently abled and livelihood enhancement projects;
iii) promoting gender equality, empowering women, setting up homes and hostels for women and orphans;
setting up old age homes, day care centres and such other facilities for senior citizens and measures for
reducing inequalities faced by socially and economically backward groups;
iv) ensuring environmental sustainability, ecological balance, protection of flora and fauna, animal welfare,
agroforestry, conservation of natural resources and maintaining quality of soil, air and water including
contribution to the Clean Ganga Fund set-up by the Central Government for rejuvenation of river Ganga;
v) protection of national heritage, art and culture including restoration of buildings and sites of historical
importance and works of art; setting up public libraries; promotion and development of traditional arts and
handicrafts;
vi) measures for the benefit of armed forces veterans, war widows and their dependents;
vii) training to promote rural sports, nationally recognised sports, paralympic sports and Olympic sports;
viii) contribution to the Prime Minister’s National Relief Fund or any other fund set up by the Central Government
for socio-economic development and relief and welfare of the Scheduled Castes, the Scheduled Tribes,
other backward classes, minorities and women;
ix) contributions or funds provided to technology incubators located within academic institutions which are
approved by the Central Government;
x) rural development projects;
xi) slum area development;
xii) such other projects as may be specified by the Central Government from time to time.
2. The Composition of the CSR Committee:
Mr. M. P. Ramachandran, Chairman (Chairman & Managing Director)
Mr. K. P. Padmakumar, Member (Independent Director)
Ms. M. R. Jyothy, Member (Whole Time Director & Chief Marketing Officer)
3. Average net profit of the company for last three Financial years: H14,705.00 lacs
4. Prescribed CSR expenditure (two percent of the amount as in item 3 above): H294.10 lacs

5. Details of CSR spent during the Financial Year 2016-17

a) Total amount to be spent for the Financial year: H294.10 Lacs
b) Amount unspent, if any: H55.73 Lacs
c) Manner in which the amount spent during the financial year detailed below:
The details are as under: (H in Lacs)

(1) (2) (3) (4) (5) (6) (7) (8)
Sr. CSR Project or Sector in Projects or Amount Amount Cumulative Amount
No activity identified which the programs outlay spent on the expenditure spent: Direct
project is 1) Local area (budget) projects or upto the or through
covered or other project or programs reporting implementing
2) Specify programs Sub-heads: period agency
the State and wise 1) Direct
district where expenditure
projects or on projects
programs 2) Overheads:
were
undertaken
1 Slum Area Development
1a Housing in Slum Area Trichur 47.26 47.26 47.26 Direct
Adivasi Area at Development District, Kerala
Trichur
2 Promoting Education
2a Contribution to Promoting Mumbai, 0.30 0.30 0.30 Implementing
Deaf Enabled Education Maharashtra Agency
Foundation
2b Contribution Promoting Kerala 0.40 0.40 0.40 Implementing
to various Education Agency
Educational
Institutions
2c Contribution to Promoting Trichur 1.00 1.00 1.00 Implementing
Public Library Education District, Kerala Agency
2d Contribution to Promoting Kozhikode 25.00 25.00 25.00 Implementing
Mathrubhumi Education District, Kerala Agency
Mission Medical
College
3 Eradicating Hunger, Poverty and Malnutrition
3a Contribution Eradicating Mumbai, 0.10 0.10 0.10 Implementing
towards the Hunger, Maharashtra Agency
Midday Meal Poverty and
programme Malnutriton
implemented
by Iskcon
Food Relief
Foundation
under the
brand name of
“Annamitra”
3b Food for blind Eradicating Kerala 0.32 0.32 0.32 Implementing
Hunger, Agency
Poverty and
Malnutriton

4 Employment enhancing vocation skills
4a Imparting Skill Employment Various states 219.72 163.99 163.99 Implementing
Development enhancing Agency
Training vocation skills
294.10 238.37 238.37
6. In case the Company has failed to spend the two percent of the average net profit of the latest Financial Years
or any part thereof the Company shall provide the reason for not spending the amount in its Board report:
The Company was required to spend H294.10 lacs (2% of the average net profits of last three financial years)
on CSR activities during the financial year 2016-17. Accordingly, the Company has spent H238.37 Lakhs on CSR
activities during the Financial year 2016-17 and the balance amount of H55.73 lacs will be spent during the
Financial Year 2017-18 towards skill development etc.
An expenditure of H6.06 Lacs which stood committed from the previous financial year towards housing in
Adivasi Area of Trichur District was spent for the same purpose in the financial year 2016-17.
7. The Chairman of the CSR committee has given a responsibility statement on behalf of the CSR Committee
that the implementation and monitoring of CSR Policy is in compliance with CSR objectives and policy of the
Company.

Sd/-
M.P. Ramachandran
and Chairman- CSR Committee
DIN: 00553406
Place: Mumbai
May 18, 2017

PARTICULARS OF LOANS, GUARANTEES AND

INVESTMENTS
Amount outstanding as at March 31, 2017
Particulars (H in Crore)
Loans given -
Guarantee given* 56.96
Investments (Current & Non-Current) 154.21
* Corporate guarantee given H66.12 Crores & financial exposure H56.96 Crores
Note: No fresh loan, guarantee and investment was made during the financial year 2016-17.

Sd/-
M.P. Ramachandran
DIN: 00553406
Place: Mumbai
May 18, 2017

SECRETARIAL AUDIT REPORT
[Pursuant to Section 204(1) of the Companies Act, 2013 and Rule No. 9 of the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014]
FOR THE FINANCIAL YEAR ENDED 31ST MARCH 2017
To
The Members
JYOTHY LABORATORIES LIMITED
Ujala House, Ram Krishna Mandir Road,
Kondivita, Andheri (East),
Mumbai – 400 059
We have conducted the secretarial audit of the (iii) The Depositories Act, 1996 and the Regulations
compliance of applicable statutory provisions and the and Bye-laws framed there under;
adherence to good corporate governance practice
(iv) The following Regulations and Guidelines
by Jyothy Laboratories Limited (hereinafter called
prescribed under the Securities and Exchange
“the Company”). Secretarial Audit was conducted
Board of India Act, 1992 ('SEBI Act'):-
in a manner that provided us a reasonable basis
for evaluating the corporate conduct / statutory i. The Securities and Exchange Board of
compliances and expressing our opinion thereon. India (Prohibition of Insider Trading)
Regulations, 2015;
Based on our verification of the Company’s Books,
Papers, Minutes Books, Forms and Returns filed and ii. The Securities and Exchange Board of
other records maintained by the Company and also India (Share Based Employee Benefits)
the information provided by the Company, its officers, Regulations, 2014;
agents and authorized representatives during the
iii. The Securities and Exchange Board of
conduct of secretarial audit, we hereby report that in
India (Substantial Acquisition of Shares and
our opinion, the Company has, during the audit period
Takeovers) Regulations, 2011;
covering the financial year ended 31st March, 2017,
complied with the statutory provisions listed hereunder iv. The Securities and Exchange Board of
and also that the Company has proper Board processes India (Issue and Listing of Debt Securities)
and compliance mechanism in place to the extent, Regulations, 2008;
in the manner and subject to the reporting made v. The Securities and Exchange Board of
hereinafter: India (Listing Obligations and Disclosure
1. We have examined the books, papers, minute Requirements) Regulations, 2015
books, forms and returns filed and other records 2. Provisions of the following Regulations and
maintained by Jyothy Laboratories Limited ("the Guidelines prescribed under the Securities and
Company") as given in Annexure I, for the financial Exchange Board of India Act, 1992 ('SEBI Act') were
year ended on 31st March, 2017, according to the not applicable to the Company under the financial
provisions of: year under report:-
(i) The Companies Act, 2013 (the Act) and the rules i. The Securities and Exchange Board of India
made there under to the extent applicable; (Delisting of Equity Shares) Regulations, 2009;
(ii) The Securities Contracts (Regulation) Act, 1956 ii. The Securities and Exchange Board of India
(‘SCRA') and the rules made there under; (Buyback of Securities) Regulations, 1998;

iii. The Securities and Exchange Board of India During the financial year under report, the Company
(Registrars to an Issue and Share Transfer has complied with the provisions of the Act, Rules,
Agents) Regulations, 1993, regarding the Regulations, Guidelines, Standards, etc. mentioned
Companies Act and dealing with client; and above.
iv. The Securities and Exchange Board of India
We further report that:
(Issue of Capital and Disclosure Requirements)
Regulations, 2009. The Board of Directors of the Company is duly
constituted with proper balance of Executive Directors,
3. Provisions of the Foreign Exchange Management Non-Executive Directors and Independent Directors.
Act, 1999 and the rules and regulations made The changes in the composition of the Board of
thereunder pertaining to Foreign Direct Investment, Directors that took place during the period under review
Overseas Direct Investment and External were carried out in compliance with the provisions of
Commercial Borrowings were not applicable to the the Act.
Company under the financial year under report.
Adequate notice is given to all directors to schedule the
4. We further report that, having regard to the Board Meetings, agenda and detailed notes on agenda
compliance system prevailing in the Company were sent at least seven days in advance, and a system
and on examination of the relevant documents exists for seeking and obtaining further information and
and records in pursuance thereof, on test-check clarifications on the agenda items before the meeting
basis, the Company has complied with other Acts, and for meaningful participation at the meeting.
Laws and Regulations applicable specifically to the
Company as mentioned hereunder: None of the members have communicated dissenting
views, in the matters / agenda proposed from time to
i. Legal Metrology Act, 2009 time for consideration of the Board and its Committees
ii. Legal Metrology (Packaged commodities) thereof, during the year under the report, hence were
Rules, 2011 not required to be captured and recorded as part of the
minutes.
iii. Environment [Protection] Act, 1986
We further report that there are adequate systems and
iv. Hazardous Wastes [Management And processes in the Company commensurate with the size
Handling] Rules, 1989 and operations of the Company to monitor and ensure
v. Insecticides Act, 1968 compliance with applicable laws, rules, regulations and
guidelines.
vi. Drugs and Cosmetics Act, 1940
We further report that during the year under report,
We have also examined compliance with the applicable following events/actions occured which had a major
clauses of the Secretarial Standards issued by The bearing on the Company's affairs in pursuance of the
Institute of Company Secretaries of India under the above referred laws, rules, regulations, guidelines,
provisions of the Companies Act, 2013. standards, etc. referred to above.

Sr. Date Event
No.
1. 11th November, 2016 The Company has redeemed 4000 Zero Coupon, Secured, Redeemable
Non- Convertible Debentures of H10,00,000 each aggregating to H400 Crores,
which were listed on the National Stock Exchange of India Limited.
2. 01st December, 2016 Postal Ballot, under Section 110 of the Companies Act, 2013 conducted
for seeking approval of shareholders of the Company with respect to the
following matters, passed by Special Resolution:
i. Authorizing Board of Directors for making offer(s) or invitation(s) to
subscribe to Non Convertible Debentures (‘NCDs’) in one or more tranches
aggregating upto H500 crores (Rupees Five Hundred Crores) on a private
placement basis.
ii. Re-appointment of Mr. Ullas Kamath as the Joint Managing Director and
Chief Financial Officer for a period of five years with effect from January 23,
2017 to January 22, 2022.
iii. Re-appointment of Ms. M.R. Jyothy as the Whole Time Director and Chief
Marketing Officer for a period of five years with effect from January 1, 2017
to December 31, 2021.
3. 08th December, 2016 The Company has issued 4000 Secured Rated Unlisted Redeemable Non
Convertible Debentures of H10,00,000/- each at par aggregating to H400
Crores
4. 01st March, 2017 Approval of Scheme of Amalgamation (“Scheme”) of Jyothy Consumer
Products Marketing Limited with Jyothy Laboratories Limited (Appointed date
of 1st April, 2016) by the Board of Directors of the Company. The National
Company Law Tribunal (“NCLT”) sanctioned the Scheme, vide its order dated
01st March, 2017.
For RATHI & ASSOCIATES

COMPANY SECRETARIES
HIMANSHU S. KAMDAR
PARTNER
Date: 18 May, 2017 FCS No. 5171
Place: Mumbai C.P. No. 3030

ANNEXURE – I
List of documents verified
1. Memorandum and Articles of Association of the are interested (Form No. MBP-4), and
Company. - Register of loans, guarantees and security and
2. Annual Report for the financial year ended 31st acquisition made by the Company (Form No.
March, 2016. MBP-2),
3. Minutes of the meetings of the Board of Directors, 9. Copies of Notice, Agenda and Notes to Agenda
Audit Committee, Nomination, Remuneration and submitted to all the directors / members for the
Compensation Committee, Securities Transfer Board Meetings and Committee Meetings as well
Committee, Stakeholders’ Relationship Committee, as resolutions passed by circulation;
ESOP Allotment Committee and Corporate Social 10. Documents related to Postal Ballot;
Responsibility Committee along with the respective
Attendance Registers held during the financial year 11. Declarations received from the Directors of the
under report. Company pursuant to the provisions of Section
184(1), Section 164(2) and Section 149(7) of the
4. Minutes of General Body Meetings held during the Companies Act, 2013.
financial year under report.
12. Intimations received from directors under the
5. Proof of circulation & Delivery of notice for Board prohibition of Insider Trading Code.
meetings and Committee Meetings.
13. E-Forms filed by the Company, from time to time,
6. Proof of circulation of draft Board and Committee under applicable provisions of the Companies Act,
meetings minutes as per Secretarial Standards. 2013 and attachments thereof during the financial
7. Policies framed by the Company: year under report.
- Policy on Related Party Transactions, 14. Intimations / documents / reports / returns

filed with the Stock Exchanges pursuant to the
- Policy on Material Subsidiaries,
provisions of Securities and Exchange Board of India
- Vigil Mechanism, (Listing Obligations and Disclosure Requirements)
- Corporate Social Responsibility Policy, Regulations, 2015 during the financial year under
- Nomination & Remuneration Policy, report;
- Risk Management Policy & Procedures, 15. Documents related to payments of dividend made
- Internal Financial Controls to its shareholders during the financial year under
report;
- Policy for Determination of Material Events
- Code of Conduct for Independent Directors, 16. Documents related to issue of shares under ESOP
Scheme viz. ESOP Scheme, Exercise forms, Listing
- Code of Conduct for prevention of insider
applications, Corporate Action Form, etc. filed with
trading,
Stock Exchanges and Listing approvals received
- Code of Practices and Procedures for Fair thereon;
Disclosure of Unpublished Price Sensitive
Information, 17. E-mails evidencing dissemination of information
related to closure of Trading window;
- Archival Policy
- Dividend Distribution Policy 18. Internal Code of Conduct for prevention of Insider
Trading by Employees / Directors / Designated
- Preservation of Records Policy
Persons of the Company;
- Business Responsibility Policy
19. Statement of Related Party Transactions entered
8. Statutory Registers viz. into by the Company during the financial year
- Register of Charges (Form No. CHG-7); under report;
- Register of Directors & Key Managerial 20. Documents filed with Stock Exchanges;
Personnel;
21. Compliance Certificate placed before the Board of
- Register of Directors’ Shareholding; Directors from time to time;
- Register of Employee Stock Options;
22. Details of Sitting Fees paid to all Non Executive
- Register of Contracts with Related Parties; and Directors for attending the Board Meetings and
contracts and Bodies etc. in which directors Committees.

To,
The Members
JYOTHY LABORATORIES LIMITED
Ujala House, Ram Krishna Mandir Road,
Mumbai – 400 059
Our report of even date is to be read along with this Accounts of the company.
letter.
4. Where ever required, we have obtained the
1. Maintenance of Secretarial record is the Management representation about the compliance
responsibility of the management of the Company. of laws, rules and regulations and happening of
Our responsibility is to express an opinion on these events etc.
secretarial records based on our audit.
5. The compliance of the provisions of Corporate
2. We have followed the audit practices and and other applicable laws, rules, regulations,
processes as were appropriate to obtain reasonable standards is the responsibility of management.
assurance about the correctness of the contents Our examination was limited to the verification of
of the Secretarial records. The verification was procedures on test basis.
done on test basis to ensure that correct facts are
6. The Secretarial Audit report is neither an assurance
reflected in secretarial records. We believe that the
as to the future viability of the company nor
processes and practices, we followed provide a
of the efficacy or effectiveness with which the
reasonable basis for our opinion.
management has conducted the affairs of the
3. We have not verified the correctness and company.
appropriateness of financial records and Books of
For RATHI & ASSOCIATES

COMPANY SECRETARIES
HIMANSHU S. KAMDAR
PARTNER
Date: 18 May, 2017 FCS No. 5171
Place: Mumbai C.P. No. 3030

Form No. MGT-9

EXTRACT OF ANNUAL RETURN
as on the financial year ended March 31, 2017
[Pursuant to Section 92(3) of the Companies Act, 2013 and Rule 12(1) of the Companies (Management and
Administration) Rules, 2014]
I. REGISTRATION AND OTHER DETAILS:

i) CIN L24240MH1992PLC128651
ii) Registration Date 15/01/1992
iii) Name of the Company JYOTHY LABORATORIES LIMITED
iv) Category / Sub-Category of the Company Company Limited by shares/ Indian Non-Government
Company
v) Address of the Registered office ‘Ujala House’ Ramakrishna Mandir Road, Kondivita, Andheri
and contact details (East), Mumbai- 400 059
Tel. No. : 022-66892800, Fax: 022-66892805
Email: [email protected]
vi) Whether listed company Yes
vii) Name, Address and Contact details
of Registrar and Transfer Agent
Name Link Intime India Pvt. Limited
Address C 101, 247 Park, L B S Marg, Vikhroli West,
Mumbai - 400 083
Tel. No. 022-49186000
Fax 022-49186060
II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY

Business activities contributing 10 % or more of the total turnover of your Company are as below:-
Sl. Name and Description of NIC Code % to total turnover

No. main products of the Product of the Company
1 Detergents 20233 47
2 Soaps 20231 29
3 Mosquito Repellent 20211 15
III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES

Sl. Name and Address of the CIN/GLN Holding/ % of Applicable
No. Company Subsidiary/ Shares Section
Associate Held
1 Jyothy Kallol Bangladesh Limited N.A. Subsidiary 75% Section2(87)(ii)
199, Tejgaon Industrial Area,
Dhaka-1208,
Bangladesh.
2 Four Seasons Drycleaning U93010MH2002PTC246838 Subsidiary* 86.37% Section2(87)
Company Private Limited
‘Ujala House’, Ramkrishna Mandir
Road, Kondivita, Andheri (East),
Mumbai – 400 059,
Maharashtra.

Sl. Name and Address of the CIN/GLN Holding/ % of Applicable
No. Company Subsidiary/ Shares Section
Associate Held
3 Snoways Laundrers & Drycleaners U93010KA2008PTC046087 Subsidiary* 42.32% Section2(87)
Private Limited
N-119, North Block,
Manipal Centre, Dickenson Road,
Bangalore – 560 042,
Karnataka.
4 Jyothy Consumer Products U99999MH1974PLC242045 Subsidiary 100% Section2(87)
Marketing Limited#
Mumbai – 400 059,
Maharashtra.
5 Jyothy Fabricare Services Limited U17120MH2008PLC180246 Subsidiary 86.37% Section2(87)
Mumbai – 400 059,
Maharashtra.
* Wholly owned subsidiaries of Jyothy Fabricare Services Limited.
# Amalgamated with your Company vide Order of the Mumbai Bench of Hon’ble National Company Law Tribunal
dated March 1, 2017 with appointed date as April 1, 2016.
IV. SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total
Equity)
i) Category-wise Share Holding
Category of Shareholders No. of Shares held at the beginning No. of Shares held at the end % Change
of the year i.e. as on 01/04/2016 of the year i.e. as on 31/03/2017 during the
Demat Physical Total % of Total Demat Physical Total % of Total year
Shares Shares
A. Promoters
(1) Indian
a) Individual/ HUF 10,58,81,401 - 10,58,81,401 58.46 10,43,58,847 - 10,43,58,847 57.44 -1.02
b) Central Government - - - - - - - - -
c) State Government (s). - - - - - - - - -
d) Bodies Corporate 1,50,00,000 - 1,50,00,000 8.28 1,50,00,000 - 1,50,00,000 8.26 -0.02
e) Banks / Financial - - - - - - - - -
Institutions
f) Any Other….
Trust - - - - 21,75,000 - 21,75,000 1.20 1.20
Sub-total (A) (1):- 12,08,81,401 - 12,08,81,401 66.74 12,15,33,847 - 12,15,33,847 66.89 0.15
(2) Foreign
a) NRIs - Individuals - - - - - - - - -
b) Other – Individuals - - - - - - - - -
c) Bodies Corp. - - - - - - - - -
d) Banks / FI - - - - - - - - -
e) Any Other…. - - - - - - - - -
Sub-total (A) (2):- - - - - - - - - -
Total shareholding of 12,08,81,401 - 12,08,81,401 66.74 12,15,33,847 - 12,15,33,847 66.89 0.15
Promoters (A) = (A)(1)+(A)
(2)

Category of Shareholders No. of Shares held at the beginning No. of Shares held at the end % Change
of the year i.e. as on 01/04/2016 of the year i.e. as on 31/03/2017 during the
Demat Physical Total % of Total Demat Physical Total % of Total year
Shares Shares
B. Public Shareholding
1. Institutions
a) Mutual Funds 1,08,28,275 550 1,08,28,825 5.98 1,12,44,542 550 1,12,45,092 6.19 0.21
b) Banks / Financial 9,378 1,866 11,244 0.01 11,090 1,866 12,956 0.01 -
Institutions
c) Central Government - - - - - - - - -
d) State Government (s) - - - - - - - - -
e) Venture Capital Funds - - - - - - - - -
f) Insurance Companies 60,73,329 - 60,73,329 3.35 61,85,679 - 61,85,679 3.40 0.05
g) Foreign Institutional 1,55,73,147 - 1,55,73,147 8.60 11,74,936 - 11,74,936 0.65 -7.95
Investors
h) Foreign Venture - - - - - - - - -
Capital Funds
i) Others (specify)
Foreign Portfolio Investor 1,06,10,345 - 1,06,10,345 5.86 2,31,15,598 - 2,31,15,598 12.72 6.86
(Corporate)
Sub-total (B)(1):- 4,30,94,474 2,416 4,30,96,890 23.79 4,17,31,845 2,416 4,17,34,261 22.97 -0.82
2. Non-Institutions
a) Bodies Corporate
i) Indian 60,24,878 3,207 60,28,085 3.33 56,03,837 3,207 56,07,044 3.09 -0.24
ii) Overseas - - - - - - - - -
b) Individuals
i) Individual shareholders 91,18,413 8,31,272 99,49,685 5.49 1,02,72,942 8,13,526 1,10,86,468 6.10 0.61
holding nominal share
capital upto H1 lakh
ii) Individual shareholders 1,50,681 0 1,50,681 0.08 1,59,130 0 1,59,130 0.09 0.01
holding nominal share
capital in excess of H1 lakh
c) Others (specify)
1. Clearing Members 1,66,397 - 1,66,397 0.09 5,60,814 - 5,60,814 0.31 0.22
2.. Non-Resident 3,30,923 5,801 3,36,724 0.19 3,61,684 5,726 3,67,410 0.20 0.01
Individuals (Repatriable)
3. Non-Resident 93,351 - 93,351 0.05 1,15,972 - 1,15,972 0.06 0.01
Individuals (Non-
Repatriable)
4. Trusts 90,721 - 90,721 0.05 2,00,946 - 2,00,946 0.11 0.06
5. Foreign Nationals - - - - 1,586 - 1,586 0.00 -
6. Hindu Undivided Family 3,25,745 - 3,25,745 0.18 3,16,246 - 3,16,246 0.17 -0.01
Sub-total (B)(2):- 1,63,01,109 8,40,280 1,71,41,389 9.47 1,75,93,157 8,22,459 1,84,15,616 10.14 0.67
Total Public Shareholding 5,93,95,583 8,42,696 6,02,38,279 33.26 5,93,25,002 8,24,875 6,01,49,877 33.11 -0.15
(B)=(B)(1)+ (B)(2)
C. Shares held by - - - - - - - - -
Custodian for GDRs &
ADRs
Grand Total (A+B+C) 18,02,76,984 8,42,696 18,11,19,680 100 18,08,58,849 8,24,875 18,16,83,724 100

(ii) Shareholding of Promoters
Sl. Shareholder’s Name Shareholding at the beginning of the year Shareholding at the end of the year % change in
No. No. of Shares % of total % of Shares No. of Shares % of total % of Shares shareholding
Shares of the Pledged / Shares of the Pledged / during the
company encumbered company encumbered year
to total to total
shares shares
1 M. P. RAMACHANDRAN 7,21,12,060 39.81 23.30 7,01,36,948 38.60 13.80 -1.21
2 SAHYADRI AGENCIES 1,50,00,000 8.28 0.00 1,50,00,000 8.26 - -0.02
LIMITED
3 M. P. DIVAKARAN 70,85,061 3.91 0.00 72,35,913 3.98 - 0.07
4 M. P. SIDHARTHAN 52,15,230 2.88 0.00 52,15,230 2.87 - -0.01
5 M. R. DEEPTHY 50,30,032 2.78 0.00 51,80,885 2.85 - 0.07
6 M. R. JYOTHY 46,18,084 2.55 0.00 47,68,937 2.62 - 0.08
7 M. G. SHANTHAKUMARI 36,17,954 2.00 0.00 36,17,954 1.99 - -0.01
8 U. B. BEENA 34,46,600 1.90 0.00 34,46,600 1.90 - NIL
9 M .P. DIVAKARAN - HUF 19,04,000 1.05 0.00 19,04,000 1.05 - NIL
10 K ULLAS KAMATH 14,51,380 0.80 0.00 14,51,380 0.80 - NIL
11 SIDHARTHAN M. P. - HUF 13,20,000 0.73 0.00 13,20,000 0.73 - NIL
12 K. K. SUJATHA 81,000 0.04 0.00 81,000 0.04 - NIL
13 JAYA TRUST - - - 21,75,000 1.20 - 1.20
(iii) Change in Promoters’ Shareholding ( please specify, if there is no change):

Sl. Shareholders Name Shareholding at the Date Increase/ Reason Cumulative Shareholding
No. beginning of the year (As Decrease in during the year
on 01/04/2016) no. of shares
No. of % of total No. of % of total
shares shares shares shares
of the of the
company Company
1 Mr. M. P. Ramachandran 7,21,12,060 39.81 7,21,12,060 39.81
16/06/2016 1,95,388 Purchase 7,23,07,448 39.92
17/06/2016 4,500 Purchase 7,23,11,948 39.92
22/09/2016 -21,75,000 Transfer by 7,01,36,948 38.63
way of Gift
As on 31/03/2017 7,01,36,948 38.60 7,01,36,948 38.60
2 Mr. M. P. Divakaran 70,85,061 3.91 70,85,061 3.91
20/09/2016 1,50,852 Purchase 72,35,913 3.99
As on 31/03/2017 72,35,913 3.98 72,35,913 3.98
3 Ms. M. R. Deepthy 50,30,032 2.78 50,30,032 2.78
20/09/2016 1,50,853 Purchase 51,80,885 2.85
As on 31/03/2017 51,80,885 2.85 51,80,885 2.85
4 Ms. M. R. Jyothy 46,18,084 2.55 46,18,084 2.55
20/09/2016 1,50,853 Purchase 47,68,937 2.63
As on 31/03/2017 47,68,937 2.62 47,68,937 2.62
5 Jaya Trust# - - - -
22/09/2016 21,75,000 Gift 21,75,000 1.20
As on 31/03/2017 21,75,000 1.20 21,75,000 1.20
Note: Except for the above there is no change in the shareholding of the Promoter/ Promoters Group. However,
there is change in the percentage shareholding of other Promoters due to the increase in Paid Up Share Capital of
your Company during the Financial Year 2016-17 consequent to the shares allotted by your Company to its eligible
employees under the approved ESOP Schemes.
#Jaya Trust became part of Promoter’s Group w.e.f. September 22, 2016.

(iv) Shareholding Pattern of top ten Shareholders (other than Directors, Promoters and Holders of GDRs and
ADRs):
Sl. Shareholders Name Shareholding Date Increase / Reason Cumulative Shareholding
No. Decrease in during the year (01-04-16
Shareholding to 31-03-17)
No. of shares at % of total No. of shares % of total
the beginning of shares of the shares of the
the year (01-04- company company
16)/End of the
year 31-03-17)
1 ICICI PRUDENTIAL 58,38,347 3.22 01/04/2016
LIFE INSURANCE 13/05/2016 60,755 Transfer 58,99,102 3.26
COMPANY LTD
20/05/2016 3,10,637 Transfer 62,09,739 3.43
10/06/2016 47,869 Transfer 62,57,608 3.45
15/07/2016 -8,248 Transfer 62,49,360 3.45
19/08/2016 -4,10 Transfer 62,48,950 3.45
26/08/2016 -5,900 Transfer 62,43,050 3.45
02/09/2016 -2,689 Transfer 62,40,361 3.45
09/09/2016 -1,830 Transfer 62,38,531 3.44
16/09/2016 -1,830 Transfer 62,36,701 3.43
30/09/2016 -9,15 Transfer 62,35,786 3.43
07/10/2016 -1,830 Transfer 62,33,956 3.43
21/10/2016 -1,032 Transfer 62,32,924 3.43
04/11/2016 -1,032 Transfer 62,31,892 3.43
11/11/2016 -516 Transfer 62,31,376 3.43
25/11/2016 -1,00,631 Transfer 61,30,745 3.38
02/12/2016 -30,539 Transfer 61,00,206 3.36
09/12/2016 -53,204 Transfer 60,47,002 3.33
16/12/2016 -732 Transfer 60,46,270 3.33
13/01/2017 -69,491 Transfer 59,76,779 3.29
27/01/2017 -1,06,724 Transfer 58,70,055 3.23
03/02/2017 1,06,907 Transfer 59,76,962 3.29
10/02/2017 -18,107 Transfer 59,58,855 3.28
17/02/2017 -11,02,482 Transfer 48,56,373 2.67
24/02/2017 10,72,953 Transfer 59,29,326 3.26
03/03/2017 20,990 Transfer 59,50,316 3.28
10/03/2017 57 Transfer 59,50,373 3.28
17/03/2017 -19,933 Transfer 59,30,440 3.26
24/03/2017 20,187 Transfer 59,50,627 3.28
31/03/2017 70 Transfer 59,50,697 3.28
59,50,627 3.28 31/03/2017 59,50,697 3.28
2 PRAZIM TRADING 0 0.00 01/04/2016
AND INVESTMENT 30/12/2016 83,511 Transfer 83,511 0.05
CO. PVT. LTD.
24/03/2017 48,24,536 Transfer 49,08,047 2.70
31/03/2017 -5,19,092 Transfer 43,88,955 2.42
43,88,955 2.42 31/03/2017 43,88,955 2.42
3 FIDELITY 35,01,337 1.93 01/04/2017
INVESTMENT TRUST 25/11/2016 60,000 Transfer 35,61,337 1.96
- FIDELITY SERIES
INTERNATIONAL 02/12/2016 18,259 Transfer 35,79,596 1.97
SMALL CAP FUND 09/12/2016 31,741 Transfer 36,11,337 1.99
36,11,337 1.99 31/03/2017 36,11,337 1.99

16)/End of the
year 31-03-17)
4 EMBLEM FII 30,75,000 1.70 01/04/2016
30,75,000 1.69 31/03/2017 30,75,000 1.69
5 DSP BLACKROCK 16,46,515 0.91 01/04/2016
SMALL AND MID CAP 24/06/2016 93,365 Transfer 17,39,880 0.96
FUND
01/07/2016 7,25,106 Transfer 24,64,986 1.36
21/10/2016 10,448 Transfer 24,75,434 1.36
04/11/2016 -32,998 Transfer 24,42,436 1.34
11/11/2016 -4,984 Transfer 24,37,452 1.34
03/03/2017 -21,819 Transfer 24,15,633 1.33
10/03/2017 -6,198 Transfer 24,09,435 1.33
24,09,435 1.33 31/03/2017 24,09,435 1.33
6 L AND T MUTUAL 29,67,403 1.64 01/04/2016
FUND TRUSTEE 22/04/2016 -8,43,200 Transfer 21,24,203 1.17
LTD-L AND T TAX
ADVANTAGE FUND 03/06/2016 -55,958 Transfer 20,68,245 1.14
02/09/2016 14,755 Transfer 20,83,000 1.15
23/09/2016 35,000 Transfer 21,18,000 1.17
21/10/2016 23,541 Transfer 21,41,541 1.18
28/10/2016 50 Transfer 21,41,591 1.18
25/11/2016 4,283 Transfer 21,45,874 1.18
02/12/2016 45,363 Transfer 21,91,237 1.21
09/12/2016 11,033 Transfer 22,02,270 1.21
16/12/2016 10,000 Transfer 22,12,270 1.22
30/12/2016 22,700 Transfer 22,34,970 1.23
13/01/2017 3,000 Transfer 22,3,970 1.23
27/01/2017 50 Transfer 22,38,020 1.23
03/02/2017 25,974 Transfer 22,63,994 1.25
10/02/2017 24,752 Transfer 22,88,746 1.26
24/02/2017 264 Transfer 22,89,010 1.26
03/03/2017 25,000 Transfer 23,14,010 1.27
10/03/2017 15,000 Transfer 23,29,010 1.28
23,29,010 1.28 31/03/2017 23,29,010 1.28
7 PARVEST EQUITY 33,70,250 1.86 01/04/2016
INDIA 29/07/2016 -70,000 Transfer 33,00,250 1.82
25/11/2016 -2,10,250 Transfer 30,90,000 1.70
02/12/2016 -1,90,000 Transfer 29,00,000 1.60
23/12/2016 -1,68,468 Transfer 27,31,532 1.50
30/12/2016 -72,033 Transfer 26,59,499 1.46
06/01/2017 -2,14,777 Transfer 24,44,722 1.35
13/01/2017 -1,80,000 Transfer 22,64,722 1.25
22,64,722 1.25 31/03/2017 22,64,722 1.25


16)/End of the
year 31-03-17)
8 SUNDARAM MUTUAL 18,93,627 1.05 01/04/2016
FUND A/C SUNDARAM 09/09/2016 20,000 Transfer 19,13,627 1.05
SELECT MIDCAP
16/09/2016 25,000 Transfer 19,38,627 1.07
23/09/2016 5,000 Transfer 19,43,627 1.07
30/09/2016 10,000 Transfer 19,53,627 1.08
07/10/2016 10,000 Transfer 19,63,627 1.08
02/12/2016 5,000 Transfer 19,68,627 1.08
06/01/2017 -5,000 Transfer 19,63,627 1.08
13/01/2017 -5,000 Transfer 19,58,627 1.08
03/03/2017 10,000 Transfer 19,68,627 1.08
17/03/2017 15,000 Transfer 19,83,627 1.09
19,83,627 1.09 19,83,627 1.09
9 BIRLA SUN LIFE 11,69,407 0.65 01/04/2016
TRUSTEE COMPANY 20/05/2016 -800 Transfer 11,68,607 0.65
PRIVATE LIMITED
A/C BIRLA SUN LIFE 27/05/2016 79,393 Transfer 12,48,000 0.69
MIDCAP FUND 17/06/2016 18,000 Transfer 12,66,000 0.70
24/06/2016 22,000 Transfer 12,88,000 0.71
23/09/2016 3,05,000 Transfer 15,93,000 0.88
18/11/2016 3,130 Transfer 15,96,130 0.88
25/11/2016 39,700 Transfer 16,35,830 0.90
30/12/2016 79,870 Transfer 17,15,700 0.94
06/01/2017 54,229 Transfer 17,69,929 0.97
03/03/2017 -1,000 Transfer 17,68,929 0.97
17,68,929 0.97 31/03/2017 17,68,929 0.97
10 ABERDEEN GLOBAL- 0 0.00 01/04/2016
ASIAN SMALLER 04/11/2016 19,421 Transfer 19,421 0.01
COMPANIES FUND
11/11/2016 54,010 Transfer 73,431 0.04
18/11/2016 32,674 Transfer 1,06,105 0.06
25/11/2016 3,32,101 Transfer 4,38,206 0.24
02/12/2016 47,635 Transfer 4,85,841 0.27
09/12/2016 1,47,255 Transfer 6,33,096 0.35
16/12/2016 30,242 Transfer 6,63,338 0.37
23/12/2016 76,662 Transfer 7,40,000 0.41
06/01/2017 3,00,000 Transfer 10,40,000 0.57
13/01/2017 4,67,547 Transfer 15,07,547 0.83
20/01/2017 1,41,726 Transfer 16,49,273 0.91
27/01/2017 30,084 Transfer 16,79,357 0.92
10/02/2017 21,216 Transfer 17,00,573 0.94
17,00,573 0.94 31/03/2017 17,00,573 0.94

(v) Shareholding of Directors and Key Managerial Personnel:
Sl. Shareholding of each Shareholding at the Date Increase/ Reason Cumulative Shareholding
No. Directors and each Key beginning of the year (As Decrease in during the year
Managerial Personnel on 01/04/2016) no. of shares
No. of % of total No. of % of total
shares shares shares shares
of the of the
Company company
1 Mr. M. P. Ramachandran 7,21,12,060 39.81 7,21,12,060 39.81
16/06/2016 1,95,388 Purchase 7,23,07,448 39.92
17/06/2016 4,500 Purchase 7,23,11,948 39.92
22/09/2016 -21,75,000 Transfer by 7,01,36,948 38.63
way of Gift
As on 31/03/2017 7,01,36,948 38.60 7,01,36,948 38.60
2 Mr. K. Ullas Kamath* 14,51,380 0.80 - - - 14,51,380 0.80
As on 31/03/2017 14,51,380 0.80 14,51,380 0.80
3 Ms. M. R. Jyothy 46,18,084 2.55 46,18,084 2 .55
20/09/2016 1,50,853 Purchase 47,68,937 2.63
As on 31/03/2017 47,68,937 2.62 47,68,937 2.62
4 Mr. S. Raghunandan# 1,95,388 0.11 - - - 1,95,388 0.11
As on 23/05/2016 1,95,388 0.11 1,95,388 0.11
5 Mr. NILesh Mehta NIL NIL - - - NIL NIL
As on 31/03/2017 NIL NIL NIL NIL
6 Mr. Bipin Shah% 100 0.0 - - - 100 0.0
As on 11/08/2016 100 0.0 100 0.0
7 Mr. K. P. Padmakumar NIL NIL - - - NIL NIL
8 Mr. R. Lakshminarayanan NIL NIL - - - NIL NIL
9 Mr. M. L. Bansal$ NIL NIL - - - NIL NIL
10 Mr. Shreyas Trivedi& NIL NIL - - - NIL NIL
* Mr. K. Ullas Kamath is also holding position of Chief Financial Officer of your Company.
# Mr. S. Raghunandan relinquished the office of Whole Time Director and Chief Executive Officer w.e.f. May 23,
2016.
% Mr. Bipin Shah resigned from the office of Independent Director w.e.f. August 11, 2016.
$ Mr. M. L. Bansal relinquished the office of Company Secretary w.e.f. May 23, 2016.
& Mr. Shreyas Trivedi was appointed as Company Secretary w.e.f. May 23, 2016.

V. INDEBTEDNESS
Indebtedness of the Company including interest outstanding/ accrued but not due for payment
(Amt. in H)
Secured Loans Unsecured Deposits Total
excluding Loans Indebtedness
deposits
Indebtedness at the beginning of the
financial year as on 01/04/2016
i) Principal Amount 4,00,00,00,000 - - 4,00,00,00,000
ii) Interest due but not paid - - - -
iii) Interest accrued but not due 1,12,94,11,166 - - 1,12,94,11,166
Total (i+ii+iii) 5,12,94,11,166 - - 5,12,94,11,166
Change in Indebtedness during the financial year
• Addition (Includes only Principal) 4,50,00,00,000 8,59,19,04,000 - 13,09,19,04,000
• Reduction (Includes only Principal) (4,50,00,00,000) (8,10,00,00,000) - (12,60,00,00,000)
Net Change - 49,19,04,000 - 49,19,04,000
Indebtedness at the end of the financial year
as on 31/03/2017
i) Principal Amount 4,00,00,00,000 49,19,04,000 - 4,49,19,04,000
ii) Interest due but not paid - - - -
iii) Interest accrued but not due 9,28,13,370 - - 9,28,13,370
Total (i+ii+iii) 4,09,28,13,370 49,19,04,000 - 4,58,47,17,370
VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

A. Remuneration to Managing Director, Whole Time Directors and/or Manager:
(Amt. in H)
Sl. Particulars of Remuneration Name of MD/WTD/ Manager Total Amount
No. M.P. Ramachandran K. Ullas Kamath S. Raghunandan M.R. Jyothy
Chairman and Joint Managing Whole Time Whole Time
Managing Director Director & CFO Director & CEO* Director
1 Gross salary
(a) Salary as per provisions 1 2,02,90,323 63,52,258 1,18,80,000 3,85,22,582
contained in section 17(1) of
the Income-tax Act, 1961
(b) Value of perquisites u/s 17(2) - - - - -
Income-tax Act, 1961
(c) Profits in lieu of salary under - - - - -
section 17(3) Income-tax Act,
1961
2 Stock Option - - 14,45,24,397 - 14,45,24,397
3 Sweat Equity - - - - -
4 Commission
- as % of profit 4,21,03,510 3,78,93,159 - - 6,81,77,215
- others, specify… - - - - -
5 Others, please specify
Provident Fund - 24,34,839 6,89,806 14,00,400 45,25,045
Superannuation - 20,29,032 - - 20,29,032
Total (A) 4,21,03,511 6,26,47,353 15,15,66,461 1,32,80,400 25,77,78,271
Ceiling as per the Act 10% of the net profits of the Company calculated as per Section 198 of the Companies Act,
2013
*Mr. S. Raghunandan relinquished the office of Whole Time Director and Chief Executive Officer of your Company w.e.f. May 23,
2016 and the particulars of remuneration specified above except stock options are for the period April 1, 2016 upto May 23, 2016.

B. Remuneration to Other Directors
(Amt. in H)
Sl. Particulars of Remuneration Name of Directors Total Amount
No. Bipin R. Shah* Nilesh B. Mehta K. P. Padmakumar R. Lakshiminarayanan
1 Independent Directors
• Fee for attending board / 60,000 1,55,000 90,000 1,05,000 4,10,000
committee meetings
• Commission 8,00,000 8,00,000 8,00,000 8,00,000 32,00,000
• Others, please specify - - - - -
Total (1) 8,60,000 9,55,000 8,90,000 9,05,000 36,10,000
2 Other Non-Executive Directors
• Fee for attending board / - - - - -
committee meetings
• Commission - - - - -
• Others, please specify - - - - -
Total (2) - - - - -
Total Managerial Remuneration 8,60,000 9,55,000 9,05,000 8,90,000 36,10,000
Total (B)=(1)+(2)
Overall Ceiling as per the Act 1% of the net profits of the Company calculated as per Section 198 of the Companies Act, 2013
*The remuneration paid to Mr. Bipin R. Shah is for the period from April 1, 2016 to August 11, 2016.
C. Remuneration to Key Managerial Personnel other than MD/Manager/WTD

(Amt. in H)
Sl. Particulars of Remuneration Key Managerial Personnel Total
No. CEO* Murari Lal Bansal# Shreyas Trivedi CFO*
Company Secretary Company Secretary
1 Gross salary
(a) Salary as per provisions contained in - 8,70,000 55,09,241 - 63,79,241
section 17(1) of the Income-tax Act, 1961
(b) Value of perquisites u/s 17(2) Income-tax - 22,243 - - 22,243
Act, 1961
(c) Profits in lieu of salary under section 17(3) - - - -
Income-tax Act, 1961
2 Stock Option - - - - -
3 Sweat Equity - - - - -
4 Commission
- as % of profit - - - - -
- others, specify… - - - - -
5 Others, please specify
Provident Fund - 90,000 3,29,032 - 4,19,032
Superannuation - - - - -
Total (A) - 9,82,243 58,38,273 - 68,20,516
*Mr. S. Raghunandan, Whole Time Director held the position of CEO upto May 23, 2016 and thereafter Mr. M. P. Ramachandran holds that
position and Mr. K. Ullas Kamath, Joint Managing Director holds the position of CFO and the details of remuneration paid to them are
provided in VI (A) above.
# The Remuneration paid to Mr. M. L. Bansal is for the period April 1, 2016 upto May 23, 2016 and to Mr. Shreyas Trivedi is for the period
from May 23, 2016 upto March 31, 2017.
VII. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES:

There were no penalties / punishment / compounding of offences for breach of any section of Companies Act, 2013 against the Company
or its Directors or other officers in default, if any, during the year under review.

Sd/-
M.P. Ramachandran
DIN: 00553406
Place: Mumbai
May 18, 2017

PARTICULARS OF EMPLOYEES
STATEMENT OF PARTICULARS OF TOP TEN EMPLOYEES IN TERMS OF REMUNERATION DRAWN PURSUANT TO
PROVISIONS OF SECTION 197(12) OF THE COMPANIES ACT 2013 READ WITH COMPANIES (APPOINTMENT AND
REMUNERATION OF MANAGERIAL PERSONNEL) RULES, 2014 ( AS AMENDED TILL DATE)
A. Employed throughout the Financial Year 2016-17 with an aggregate salary not less than H1,02,00,000/- per
annum:
Name Age Qualification Designation Date of Com- Experience Total Gross Previous
mencement of (years) Remuneration Employment
employment
M.P.RAMACHANDRAN 71 Postgraduate Degree in Chairman and 15-01-1992 42 years 4,21,03,511 Proprietor
Financial Management Managing Director – Jyothy
Laboratories
K.ULLAS KAMATH 54 M.Com., F.C.A., A.C.S., Joint Managing 26-03-1997 31 years 6,26,47,353 Practicing
L.L.B., A.M.P. – Wharton Director and Chief Chartered
Business School and Financial Officer Accountant
Harward Business School,
U.S.A
M.R.JYOTHY 39 Bcom, MBA, Family Whole Time 01-01-2004 13 years 1,32,80,400 -
Managed Business Director and Chief
administration from Marketing Officer
S.P.Jain Institute of
Management, Owner/
President Management
Programme from Harvard
University, USA
RAJNIKANT SABNAVIS 50 B.E. (Mech), MBA. Chief Operating 21-10-2013 26 years 3,83,79,287 Unilever /
Officer Regional
Category Vice
President (Hair
Care - South
Asia)
NEETU KASHIRAMKA 43 B. Com, CA. VP - Finance 21-11-2000 19.5 years 1,24,64,154 Kewal Kiran
& Co- Asst.
Manager-
Accounts
S SOMASUNDARAM 47 B. Sc. VP - Supply 17-08-2012 21.7 years 1,03,57,843 Kumar Organic
Sourcing & Product Limited
Manufacturing - Vice President
Operation
VENKITACHALAM IYER 55 B. Com Head - Corporate 07-12-1999 17.8 years 1,07,04,928 Henkel India
Sales Limited - Head
-Corporate Sales
A. Employed throughout the Financial Year 2016-17 with an aggregate salary not less than H1,02,00,000/- per
annum:
S. RAGHUNANDAN 52 PGDBM-IIM Calcutta, Whole Time 23-05-2012 26 years 15,15,66,461 Managing

M.Sc., BE Hons in Director and Director – Reckitt
Chemical Engg – Chief Executive Benckiser India
BITS Pilani Officer Limited
Note:
1. The aforesaid remuneration is inclusive of value of perquisites arising out of exercise of ESOP grants by respective employees.
2. All appointments are contractual and terminable by notice on either side.
3. None of the employees mentioned above is related to any director of the Company except Mr. M. P. Ramachandran and Ms. M. R. Jyothy, who
are related to each other.
4. None of the employee is drawing remuneration more than the remuneration drawn by managing director/ whole time director and is holding
by themselves or along with their spouse and dependent children, two percent or more of the equity shares of the Company.

DETAILS PERTAINING TO REMUNERATION AS REQUIRED UNDER SECTION 197(12) OF THE COMPANIES ACT,
2013 READ WITH RULE 5(1) OF THE COMPANIES (APPOINTMENT AND REMUNERATION OF MANAGERIAL
PERSONNEL) RULES, 2014
(i) The percentage increase in remuneration of each Director, Chief Financial Officer and Company Secretary
during the financial year 2016-17, ratio of the remuneration of each Director to the median remuneration of
the employees of the Company for the financial year 2016-17 are as under:
Sl. No. Name of Director Designation Remuneration % increase in Ratio of

Current Year Remuneration in remuneration
the financial year of each Director
2016-17 to median
remuneration of
employees
1 M. P. Ramachandran Chairman and Managing 4,21,03,511 34.65 151:1
Director
2 K. Ullas Kamath Joint Managing Director and 6,26,47,353 25.04 225:1
Chief Financial Officer
3 S. Raghunandan Whole Time Director and Chief 15,15,66,461 212.43 545:1
(resigned w.e.f. May 23, 2016) Executive Officer
4 M. R. Jyothy Whole Time Director & Chief 1,32,80,400 29.59 48:1
Marketing Officer
5 Nilesh B. Mehta Independent Director 9,55,000 No change 3:1
6 K.P. Padmakumar Independent Director 8,90,000 -3.26 2:1
7 Bipin R. Shah (resigned w.e.f. Independent Director 60,000 -93.58 0.02:1
August 11. 2016)
8 R. Lakshminarayanan Independent Director 9,05,000 2.26 3:1
9 Murari Lal Bansal* Company Secretary 9,70,993 -78.69 3:1
(resigned w.e.f. May 23, 2016)
10 Shreyas Trivedi Company Secretary 58,38,273 - 21:1
(ii) In the financial year, there was an increase of 21.93 % in the median remuneration of employees;
(iii) There were 2,391 permanent employees on the rolls of Company as on March 31, 2017;
(iv) Average percentage increase made in the salaries of employees other than the managerial personnel in the
last financial year i.e. 2016-17 was 11.58 % whereas the managerial remuneration for the same financial year
increased by 58.23%.
(v) The key parameters for the variable component of remuneration availed by the directors are as per the
Remuneration Policy of the Company.
(vi) It is hereby affirmed that the remuneration paid is as per Remuneration Policy for Directors, Key Managerial
Personnel and other Employees.

DIVIDEND DISTRIBUTION POLICY

1. Background, Scope and Purpose: 2.4 “Listed Entity / Company” shall mean Jyothy
The Securities and Exchange Board of India (SEBI) on Laboratories Limited.
July 8, 2016 has notified the SEBI (Listing Obligations 2.5 “Policy” means Dividend Distribution Policy.
and Disclosure Requirements) (Second Amendment)
Regulations, 2016 (Regulations). Vide these Regulations, 2.6 “Regulations” shall mean the Securities and
SEBI has inserted Regulation 43A after Regulation 43 of Exchange Board of India (Listing Obligations and
SEBI (Listing Obligations and Disclosure Requirements) Disclosure Requirements) Regulations, 2015 as
Regulations, 2015 which requires the top 500 listed notified by the Securities and Exchange Board of
companies (by market capitalisation) to formulate and India, as amended, from time to time.
disclose a Dividend Distribution Policy in the Annual 2.7 “Stock Exchange” shall mean a recognised Stock
Report and on the website of the Company. Exchange as defined under clause (f) of Section 2
Jyothy Laboratories Limited (the “Company”) being of the Securities Contracts (Regulation) Act, 1956.
one of the top 500 listed companies as per the criteria
mentioned above, the Board of Directors (“Board”) of
3. Dividend distribution philosophy:
the Company at its meeting held on January 20, 2017 The Company is deeply committed to drive superior
adopted this Dividend Distribution Policy to comply value creation for all its stakeholders. The focus will
with these requirements. The Company currently has continue to be on sustainable returns, through an
only one class of shares, viz. equity, for which this policy appropriate capital strategy for both medium term and
is applicable. The policy is subject to review if and when longer term value creation. Accordingly, the Board
the Company issues different classes of shares. would continue to adopt a progressive and dynamic
dividend policy, ensuring the immediate as well as long
The intent of the Policy is to broadly specify the external term needs of the business.
and internal factors including financial parameters that
shall be considered while declaring dividend and the 4. Financial parameters and other internal and
circumstances under which the shareholders of the external factors that would be considered for
Company may or may not expect dividend and how declaration of Dividend:
the retained earnings shall be utilized, etc.
A. Financial parameters and Internal Factors-
The Policy is not an alternative to the decision of the
• Distributable surplus available as per the Act and
Board for recommending dividend, which is made
Regulations
every year after taking into consideration all the relevant
circumstances enumerated hereunder or other factors • Working Capital requirement
as may be decided as relevant by the Board. • Earnings Per Share (EPS)
The Policy reflects the intent of the Company to reward • The Company’s liquidity position and future cash
its shareholders by sharing a portion of its profits after flow needs
retaining sufficient funds for growth of the Company. • Track record of Dividends distributed by the
The Company shall pursue this Policy, to pay, subject Company
to the circumstances and factors enlisted herein, • Prevailing Taxation Policy or any amendments
progressive dividend, which shall be consistent with expected thereof, with respect to Dividend
the performance of the Company over the years. distribution
• Capital expenditure requirements considering the
2. Definitions:
expansion and acquisition opportunities
2.1 “Board” shall mean Board of Directors of the
• Additional investment in subsidiaries and associates
Company.
of the Company
2.2 “Companies Act” shall mean the Companies Act, • Upgradation of technology and physical
2013 and Rules thereunder, notified by the Ministry infrastructure
of Corporate Affairs, Government of India, as
• Acquisition of brands and business
amended from time to time.
• Past dividend payout ratio/ trends
2.3 “Dividend” represents the profit of the Company,
which is distributed to shareholders in proportion B. External Factors-
to the amount paid-up on shares they hold. • Cost and availability of alternative sources of
Dividend includes Interim Dividend. financing

• Economic Environment • Replacement of Capital Assets
• Capital Markets • Any other permissible purpose
• Dividend Payout ratio of competitors
7. Circumstances under which shareholders may
• Macroeconomic and business conditions in not expect Dividend:
general
The decision regarding dividend pay-out is a crucial
Any other relevant factors that the Board may deem fit decision as it determines the amount of profit to be
to consider before declaring Dividend. distributed among shareholders of the Company
and the amount of profit to be retained in business.
5. Manner of Dividend Payout: The decision seeks to balance the dual objectives
A. In case of final dividend: of appropriately rewarding shareholders through
dividends and retaining profits in order to maintain a
i. Recommendation, if any, shall be done by the healthy capital adequacy ratio to support future growth.
Board, usually in the Board meeting that considers The shareholders of the Company may not expect
and approves the annual financial statements, dividend in the following circumstances, subject to
subject to approval of the shareholders of the discretion of the Board of Directors:
Company.
• Proposed expansion plans requiring higher capital
ii. The dividend as recommended by the Board allocation
shall be approved/declared at the Annual General
Meeting of the Company. • Decision to undertake any acquisitions,
amalgamation, merger, joint ventures, new product
iii. The payment of dividends shall be made within launches etc. which requires significant capital
the statutorily prescribed period from the date of outflow
declaration, to those shareholders who are entitled
to receive the dividend on the record date/book • Requirement of higher working capital for the
closure period, as per the applicable law. purpose of business of the Company
B. In case of interim dividend: • Proposal for buy-back of securities
i. Interim dividend, if any, shall be declared by the • In the event of loss or inadequacy of profit
Board. • Any other unforeseen circumstances having a
ii. Before declaring interim dividend, the Board shall bearing on the profits of the Company
consider the financial position of the Company
that allows the payment of such dividend. 8. Parameters to be adopted with regards to
various classes of shares:
iii. The payment of dividends shall be made within
Since the Company has issued only one class of equity
the statutorily prescribed period from the date
shares with equal voting rights, all Members of the
of declaration to the shareholders entitled to
Company are entitled to receive the same amount
receive the dividend on the record date, as per the
of dividend per share as per their shareholding in the
applicable laws.
Company. The Policy shall be suitably reviewed at the
iv. In case no final dividend is declared, interim dividend time of issue of any new class of shares depending
paid during the year, if any, will be regarded as final upon the nature and guidelines thereof.
dividend in the Annual General Meeting.
9. Modification of the Policy:
6. Utilisation of retained earnings: The Board is authorised to review/ change/amend this
Subject to applicable regulations, the Company’s policy from time to time at its sole discretion and/or in
retained earnings shall be applied for: pursuance of any amendments made in the Companies
Act, 2013, the Regulations, etc.
• Funding inorganic and organic growth needs
including working capital, capital expenditure,
10. Disclaimer:
repayment of debt, etc. where the cost of debt/
capital is high This document does not solicit investments in the
Company’s securities, nor is it an assurance of
• Buyback of shares subject to applicable limits
guaranteed returns (in any form), for investments in the
• Payment of Dividend in future years Company’s equity shares.
• Issue of Bonus shares

BUSINESS RESPONSIBILITY REPORT

Section A: General Information about the Company
1. Corporate Identity Number (CIN) L24240MH1992PLC128651
2. Name of the Company JYOTHY LABORATORIES LIMITED
3. Registered address ‘Ujala House’, Ramakrishna Mandir Road, Kondivita, Andheri
(East), Mumbai – 400 059
4. Website www.jyothylaboratories.com
5. Email id [email protected]
6. Financial year reported 2016-17 (for the year ended 31st March, 2017)
7. Sector(s) that the Company is engaged in 20233 - Detergents
(industrial activity code-wise) (NIC Code) 20231 - Soaps
20211 - Mosquito Repellent
8. List three key products / services that the 1. Fabricare (Detergents, Detergent Bar and Fabric
Company manufactures/ provides (as in Whitener)
balance sheet) 2. Dishwash (Dishwash Bar and Liquid)
3. Household Insecticides (Mosquito repellent coil and
liquid vapouriser)
9. Total number of locations where business
activity is undertaken by the Company
i) International locations None
ii) National locations Registered Office:
‘Ujala House’, Ramakrishna Mandir Road, Kondivita,
Andheri (East), Mumbai – 400 059
Zonal Offices:
West Zone
43, Shivshkati Industrial Estate,
Andheri Kurla Road,
Marol, Andheri, Mumbai – 400 059
East Zone
“POONAM BUILDING”
5/2, Russel Street, Flat No 3A & 3B,
Kolkata - 700 071
North Zone
304-305, 3rd Floor, K.M Trade Tower,
Sector-14,Kaushambi,
Near Radisson Blue Hotel,
Ghaziabad, Uttar Pradesh-201 010
South Zone
N 903 - 904, Rear Wing,
Manipal Centre, Bangalore – 560 042,
For details of manufacturing locations, please refer
Corporate Governance Report forming part of the Annual
Report 2016-17.
10. Markets served by the Company - National and International
Local / State / National / International

Section B: Financial Details of the Company
(H in Lacs)
1. Paid up Capital of the Company H1,816.84
(As on March 31, 2017) (18,16,83,724 Equity shares of H1 each)
2. Total turnover H1,69,815.90 (Standalone)
(For the financial year 2016-17)
3. Total profit after tax H20,204.77 (Standalone)
(For the financial year 2016-17)
4. Total spending on Corporate Social Responsibility 1.62% (H238.37 lacs)
(CSR) as percentage of profit after tax (%): (Balance of 0.38% amounting to H55.73 lacs will be spent
in financial year 2017-18)
5. List of activities in which expenditure in four Please refer Annual Report on CSR Activities annexed to
above was incurred: the Directors’ Report
Section C: Other Details

1. Does the Company have any Subsidiary Yes
Company / Companies?
2. Does the subsidiary Company / Companies No
participate in the BR initiatives of the parent
Company? If yes, then indicate the number of
such Subsidiary Company(s).
3. Does any other entity / entities (e.g. suppliers, No entity participates in the BR initiatives of the Company.
distributors etc.), that the Company does However the Company encourages its suppliers,
business with, participate in the BR initiatives distributors, etc to adopt BR initiatives and follow good
of the Company? If yes, then indicate the business practices.
percentage of such entity/ entities? [Less than
30%, 30-60%, More than 60%]
Section D: BR Information
1. Details of Director / Directors responsible for BR
a) Details of the Director / Directors responsible for the implementation of the BR policy / policies
DIN 00506681
Name Mr. K. Ullas Kamath
Designation Joint Managing Director and Chief Financial Officer
b) Details of the BR head:
Name Mr. K. Ullas Kamath
Designation Joint Managing Director and Chief Financial Officer
Telephone No. 022-66892800
E-mail ID [email protected]

2. Principle-wise (as per NVGs) BR Policy / policies (Reply in Y / N)

The National Voluntary Guidelines (NVGs) on Social, Environmental and Economic Responsibilities of Business
released by the Ministry of Corporate Affairs adopted nine areas of Business Responsibility, viz.:
Principle 1 P1 Businesses should conduct and govern themselves with Ethics, Transparency and
Accountability
Principle 2 P2 Businesses should provide goods and services that are safe and contribute to sustainability
throughout their life cycle
Principle 3 P3 Businesses should promote the wellbeing of all employees
Principle 4 P4 Businesses should respect the interests of and be responsive towards all stakeholders,
especially those who are disadvantaged, vulnerable and marginalised
Principle 5 P5 Businesses should respect and promote human rights
Principle 6 P6 Businesses should respect, protect and make efforts to restore the environment
Principle 7 P7 Businesses, when engaged in influencing public and regulatory policy, should do so in a
responsible manner
Principle 8 P8 Businesses should support inclusive growth and equitable development
Principle 9 P9 Businesses should engage with and provide value to their customers and consumers in a
responsible manner
(a) Details of Compliance:
P1 P2 P3 P4 P5 P6 P7 P8 P9
1. Do you have a policy/ policies for. Y Y Y Y Y Y Y Y Y
2. Has the policy been formulated Y Y Y Y Y Y Y Y Y
in consultation with the relevant
stakeholders?[1]
3. Does the policy conform to national The policies conform to the nine principles of National Voluntary
/ international standards? If yes, Guidelines (NVGs) for Business Responsibility Report
specify? (50 words)
4. Has the policy been approved by the Y Y Y Y Y Y Y Y Y
Board? If yes, has it been signed by the
MD / Owner / CEO appropriate Board
Director? [2]
5. Does the Company have a specified Y Y Y Y Y Y Y Y Y
committee of the Board/ Director /
Official to oversee the implementation
of the policy? [3]
6. Indicate the link to view the policy Please refer Note 4 given below
online. [4]
7. Has the policy been formally Y Y Y Y Y Y Y Y Y
communicated to all relevant internal
and external stakeholders?
8. Does the Company have in-house Y Y Y Y Y Y Y Y Y
structure to implement its policy /
policies? [7]
9. Does the Company have a grievance Y Y Y Y Y Y Y Y Y
redressal mechanism related to
the policy / policies to address
stakeholders' grievances related to
the policy/ policies?
10. Has the Company carried out Y Y Y Y Y Y Y Y Y
independent audit/evaluation of the
working of this policy by an internal or
external agency?

Notes
1. All the policies are formulated with detailed analysis and benchmarking across industry. The policies are in
compliance with all applicable laws.
2. As per the Company’s practice, all the policies are approved by the concerned Functional Head or Chairman &
Managing Director / Joint Managing Director of the Company depending upon the nature of policy.
3. All the policies have a policy owner and the respective policy owners are responsible for implementation of
the policy.
4. Except Code of Conduct and Corporate Social Responsibility Policy, all other policy documents being in-house
and internal documents of the Company are uploaded on the intranet and are accessible to all employees of
the Company and thus are not available on the website of the Company. The Code of Conduct and Corporate
Social Responsibility Policy can be accessed on the below link: http://www.jyothylaboratories.com.
5. Any grievance relating to any of the policy can be escalated to the policy owner/ Chairman and Managing
Director & /or Joint Managing Director.
6. Implementation of policies is evaluated as a part of internal governance by policy owners.
(b) If answer to question at Sr. No. 1 against any principle, is ‘No’, please explain why? (Tick up to two options)
P1 P2 P3 P4 P5 P6 P7 P8 P9
1. The Company has not understood the
Principles
2. The Company is not at a stage where
it finds itself in a position to formulate
and implement the policies on specified
Principles
ble
3. The Company does not have financial lica
pp
or manpower resources available for the tA
No
task
4. It is planned to be done within next six
months
5. It is planned to be done within next one
year
6. Any other reason (please specify)
3. Governance related to BR
1. Indicate the frequency with which the The Chairman & Managing Director and / or Joint Managing
Board of Directors, Committee of the Board Director shall assess the BR performance of the Company
or the CEO assess the BR performance on an annual basis.
of the Company. Within 3 months, 3-6
months, annually, more than 1 year
2. Does the Company publish a BR or a The requirements of Business Responsibility reporting have
Sustainability Report? What is the hyperlink become applicable to the Company from April 1, 2016.
for viewing the report? How frequently it is Accordingly, the first Business Responsibility Report will be
published? for the FY 2016-17 and the same shall be published on a
yearly basis from FY 2017-18 onwards. The link for Business
Responsibility Report is http://www.jyothylaboratories.com.

Section E: Principle-wise performance

Principle 1: Ethics, Transparency and Accountability
Businesses should conduct and govern themselves with Ethics, Transparency and Accountability
1. Does the policy relating to ethics, bribery The Policy relating to Ethics, Transparency and Accountability
and corruption cover only the Company? at present covers the Company only. The policy includes
Yes / No. Does it extend to the Group / a Code of Conduct prescribed by the Company for all its
Joint Ventures / Suppliers / Contractors / employees including the Directors. The policy does not
NGOs / Others? extend to the Group/ Joint Venture/ Suppliers, etc. However,
the Company encourages parties associated with its value
chain like vendors, suppliers, contractors, etc. to follow the
principles envisaged in the policy.
2. How many stakeholder complaints were During the financial year 2016-17, no stakeholder complaints
received in the past financial year and what were received.
percentage was satisfactorily resolved by
the management? If so, provide details
thereof in about 50 words or so.
Principle 2: Product Lifecycle Sustainability

Businesses should provide goods and services that are safe and contribute to sustainability throughout their life
cycle
1. List three of your products or services Exo Dish Wash Bar / Round
whose design has incorporated social or Exo Dish Wash Bar is an anti-bacterial dish wash that offers
environmental concerns, risks and / or ultra-clean dish-washing and superior hygiene. First in its
opportunities category, Exo Dish Wash Bar is a pioneering product that
incorporates ‘Cyclozan’, a highly active anti-bacterial agent
often used in toothpastes, and hence safe, however tough
against germs that cause food poisoning.
Exo Dish Wash Round, the unique round shape of the bar has
clear advantage over the traditional rectangular bars available
in the market. Given its round shape, the bar is used in its
entirety and ensures zero wastage. Add to that, the innovative
Anti-Sogg formula that prevents excessive melting of the bar
when in contact with water, which makes the Exo Dish Wash
Round a great value for money choice.
Henko LINTelligent Detergent Powder
The powder is pink in colour, while the texture is soft and
smooth with a fine perfume scent that gives you a whole new
washing experience while giving one’s clothes a new look and
protecting it from ageing. Henko with a LINT Reduction Power
of 127% is a result of intensive research specially designed to
not just clean and remove stains, but its unique Nano Fibre
Lock Technology locks fraying fibres and conditions them to
keep the colour and sheen intact. Henko is available in a Matic
variant for Top Load and Front Load washing machines as well
as a bucket wash variant called Wonder Wash.

Margo Original Neem Soap – Infused with Neem Oil
In India, Neem and skin care have gone hand in hand for
generations, and if there’s one brand that is the very essence
of Neem, that’s Margo. In fact, Margo has been a family
heritage since 1920. Infused with 100% Neem Oil and Vitamin
E, Margo Original Neem is just the soap for those looking for
healthy skin and has high standards for hygiene.
PRIL LIQUID – Dish Wash
Pril Liquid has a unique formula making it non messy and
gentle to the skin, thus leaving both the dishes as well as
hands clean, smooth and pleasant. Among other ingredients
is a potent antibacterial element that easily deals with even
the toughest of bacteria.
2. For each such product, provide the a) Reduction during sourcing / production / distribution
following details in respect of resource use achieved since the previous year throughout the value
(energy, water, raw material and so on) per chain?
unit of product (optional)
The Company has undertaken various initiatives for
efficient and optimal use of resources. The Consumption
per unit varies as per the product mix and hence it is not
possible to ascertain reduction achieved at each level.
b) Reduction during usage by consumers (energy, water) has
been achieved since the previous year?
The Company through continuous improvement and
innovation in product formulations tries to ensure lesser
consumption of water and other resources, however the
same cannot be quantified in real terms.
3. Does the Company have procedures in Yes. The Company has implemented various sustainable
place for sustainable sourcing (including supply chain practices and initiatives and at the same time
transportation)? If yes, what percentage of ensures timely and cost effective deliveries for necessary
your inputs was sourced sustainably? Also resources.
provide details thereof, in about 50 words
or so
4. Has the Company taken any steps to The Company accords priority to local suppliers in
procure goods and services from local and procurement of stores and spares and other consumables.
small producers, including communities The Company takes steps for capacity building of local and
surrounding their place of work? If yes, small vendors. The Company’s contractors who supply labour
what initiatives were taken to improve their services for plant operations employ workmen from nearby
capacity and capability of local and small communities. This workforce is educated and provided
vendors? training for occupational health and safety.
5. Does the Company have a mechanism Yes, the Company has a mechanism to recycle its products for
to recycle products and waste? If yes, further usage. The percentage of recycling of process waste
what is the percentage of recycling them is approximately 5%.
(separately as <5%, 5-10%, >10%)? Also
provide details thereof, in about 50 words
or so

Principle 3: Employee Wellbeing

Businesses should promote the wellbeing of all employees
1. Total number of employees. The Company believes that employees play a pivotal
2. Total number of employees hired on temporary / role and are the key to the success of the organization.
contractual / casual basis The Company provides a work environment that is free
3. Total number of permanent women employees from any form of discrimination among employees. As
on March 31, 2017, the Company has a total workforce
4. Total number of permanent employees with
of 2,391 employees consisting of 480 woman
disabilities
employees.
5. Do you have an employee association that is At present there are six management recognized
recognized by the Management? employee associations which have approximately 400
6. What percentage of your permanent employees permanent employees as its member.
are members of this recognised employee
association?
7. Please indicate the number of complaints relating The Company has not received any complaints relating
to child labour, forced labour, involuntary labour to child labour, forced labour, involuntary labour,
and sexual harrassment in the last financial year sexual harassment during the FY 2016-17 and hence
and pending, as on the end of the financial year pendency of the same does not arise.
8. What percentage of your employees that were Majority of the employees were imparted safety and
given safety and skill up-gradation training in the skill up-gradation training. The Company conducts
last year? from time to time training programs at all its factory
units, zonal offices and registered office.
Principle 4: Stakeholder Engagement

Businesses should respect the interests of and be responsive towards all stakeholders, especially those who are
disadvantaged, vulnerable and marginalised
1. Has the Company mapped its internal and Yes, the Company has mapped its stakeholders as a part of its
external stakeholders? Yes / No stakeholder engagement process. Key categories are:
1) Customers
2) Shareholders/Investors
3) Partners (Suppliers / Vendors / Landlords)
4) Employees
5) Regulatory Bodies
6) Industry forums
2. Out of the above, has the Company Yes, the Company has identified the disadvantaged,
identified the disadvantaged, vulnerable vulnerable and marginalised stakeholders. All its beneficiaries
and marginalized stakeholders? through the social development projects implemented by
the above mentioned organisations are centered around the
marginalised, economically weak and disadvantaged sections
of the society, especially the girl child, underprivileged women
and persons with disabilities. The Company’s community
initiatives are being implemented in both rural and urban
areas.
Besides the direct project implementation through these
organisations, the Company with the support of its
employees also contributes funds to several other non-profit
organisations.
3. Are there any special initiatives undertaken The Company’s initiatives in the areas of Corporate Social
by the Company to engage with the Responsibility are targeted to bring meaningful difference
disadvantaged, vulnerable and marginalised in the lives of its associated stakeholders in thrust areas like
stakeholders? healthcare, infrastructure support and education. Several
initiatives towards healthcare, education, sanitation, safe
drinking water, integrated rural development, creation of
sustainable livelihood, women empowerment, etc. have been
taken by the Company.

Principle 5: Human Rights
Businesses should respect and promote human rights
1. Does the policy of the Company on human The Company values and respects the human rights and shall
rights cover only the Company or extend always remain committed for its protection. The Company’s
to the Group / Joint Ventures / Suppliers / Code of Business Conduct, policy on sexual harassment at
Contractors / NGOs / Others? workplace and the human resource practices cover most of
these aspects. The Company encourages all its contractors,
group companies, joint ventures and suppliers to adopt good
practices in this regard.
2. How many stakeholder complaints were No stakeholder complaint pertaining to human rights was
received in the past financial year and what received in FY 2016-17.
percent was satisfactorily resolved by the
Management?
Principle 6: Environmental Management

Businesses should respect, protect and make efforts to restore the environment
1. Does the policy related to Principle 6 cover The Company has high regards for Environmental Sustainability
only the Company or extends to the Group and it strives hard for preservation of the environment by
/ Joint Ventures / Suppliers / Contractors / striking a balance between economic growth and ecology.
NGOs / Others? The Company’s plants have state-of-the-art facilities and six
of its plants are ISO 9001-2015 certified. The Subsidiaries, Joint
ventures and other third party/ vendors are encouraged to
adopt the similar practices that are followed by the Company.
2. Does the Company have strategies / The Company undertakes various initiatives for environmental
initiatives to address global environmental protection, safety and health of both the employees and other
issues, such as climate change, global living beings in the vicinity. The Company tries to address the
warming, and others? If yes, please give global environmental issues, such as climate change, global
hyperlink for webpage etc. warming, etc. by installing various RO and other effluent
treatment plants and ambient air monitoring system at its
plants situated at various locations. The Company frames a
plant layout with an emphasis on Environment, Safety and
Health concerns. The Company has adopted an initiative
called greenery on earth under which various trees are planted
at the plant locations to tackle with the issue of carbon
footprint. The Company also celebrates World Environment
Day, Safety Week and Health Day and various new initiatives
are undertaken on these occasions.
3. Does the Company identify and assess Yes. The Company has a Risk Management mechanism in place
potential environmental risks? Y / N to identify and assess existing and potential environmental
risks across its operations.
4. Project(s) related to Clean Development Currently, the Company is not undertaking any project related
Mechanism to Clean Development Mechanism.
5. Has the Company undertaken any other Yes, the Company has taken multiple initiatives towards energy
initiatives on clean technology, energy efficiency and use of renewable energy at its site. The Company
efficiency, renewable energy and so on? If has adopted a robust waste management system which
yes, please give hyperlink to web page and ensures reduction of waste by minimizing waste at source
others. and recycle waste materials. Other initiatives of the Company
include installation of RO and other effluent treatment plants
and ambient air monitoring system, replacement of tube light
with LED and plantation of trees at various plant locations.

6. Are the emissions / waste generated by Emissions / wastes generated by the Company are within
the Company within the permissible limits permissible limits. The Company regularly submits reports on
given by CPCB / SPCB for the financial year emission levels to CPCB/SPCB.
being reported?
7. Number of show cause / legal notices The Company has not received any show cause / legal notices
received from CPCB / SPCB, which are from CPCB / SPCB in FY 2016-17 and hence question of
pending (i.e. not resolved to satisfaction) as pendency does not arise.
on the end of the financial year.
Principle 7: Policy Advocacy

Businesses, when engaged in influencing public and regulatory policy, should do so in a responsible manner
1. Does the Company represent in any The Company is inter alia a member of the following business
trade and chambers/ association? If yes, associations:
name only those major ones that the - Federation of Indian Chambers of Commerce and
Company deals with Industry (FICCI)
- Confederation of Indian Industry (CII)
- Basic Chemicals, Cosmetics & Dyes Export Promotion
Council (CHEMEXCIL)
- The Advertising Standards Council of India (ASCI)
- Home Insect Control Association (HICA)
2. Has the Company advocated / lobbied The Company takes note of the public policies that maximize
through the above associations for the the ability of individuals and companies to innovate, increase
advancement or improvement of public job creation, benefit the daily lives of people and strengthen
good? If yes, specify the broad areas the country’s economy.
Principle 8: Inclusive Growth

Businesses should support inclusive growth and equitable development
1. Does the Company have specified Yes, the Company considers social development as an
programmes / initiatives / projects in pursuit important aspect of its operations. It has aligned its thrust areas
of the policy related to Principle 8? If yes, in line with the requirements of Schedule VII to the Companies
provide details thereof Act, 2013. To oversee implementation of various initiatives,
the Company has formed a Board Level Committee called
Corporate Social Responsibility Committee. The Company
has adopted a policy on Corporate Social Responsibility to
streamline its efforts towards Corporate Social Responsibility
and support inclusive growth and equitable development.
2. Are the programmes / projects undertaken The projects are mostly undertaken through in-house teams
through in-house team / own foundation and occasionally in co-ordination with external agencies like
/ external NGO / government structures / NGOs and Trusts.
any other organisation?
3. Has the Company done any impact Impact assessment is conducted on regular basis and
assessment for its initiative? is reviewed from time to time. Based on these impact
assessments, the Company decides upon appropriate
intervention required to be undertaken.
4. What is the Company's direct contribution The Company has spent an amount of H238.37 Lacs in various
to community development projects CSR activities during the financial year 2016-17. The details of
(Amount in INR and the details of the the amount incurred and areas covered are given in the report
projects undertaken)? on Corporate Social Responsibility annexed to and forming
part of the Directors’ Report.

5. Has the Company taken steps to ensure All the Company’s social development programmes are
that this community development initiative implemented based on the needs within the community. Its
is successfully adopted by the community? programmes on education, sanitation, skill development and
Please explain in around 50 words more have ensured involvement and sustained participation
from the community members. They are involved for better
implementation of the projects in their respective areas. The
Company’s social initiative continuously focuses on benefiting
both individual and the community at large.
Principle 9: Value for Customers

Businesses should engage with and provide value to their customers and consumers in a responsible manner
1. What percentage of customer complaints / The Company believes in providing a high quality product to its
consumer cases is pending, as on the end customers at an affordable price after taking into consideration
of the financial year? the needs of the customers. The Company has in place an
established feedback system to deal with the customers’
feedback and complaints. All the customers’ concerns are
taken up and resolved immediately to the satisfaction of the
customers. As on the end of financial year 2016-17, there were
no complaints remaining unresolved.
2. Does the Company display product The Company displays all the information on the product label
information on the product label, over as mandated by the regulations to ensure full compliance
and above what is mandated as per local with relevant laws and other additional information as well, if
laws? Yes / No / N.A. / Remarks (additional available on case to case basis.
information)
3. Cases filed by any stakeholder against the The Company never indulges in any anti-competitive behavior
Company regarding unfair trade practices, and understands that consumers are the most important
irresponsible advertising and / or anti- stakeholder for the Company. There are no cases filed against
competitive behaviour during the last five the Company in relation to unfair trade practices, irresponsible
years and pending as on the end of the advertising and / or anti-competitive behaviour during the last
financial year. If yes, provide details thereof, five years and pending as on end of financial year 2016-17.
in about 50 words or so
4. Did the Company carry out any consumer The Company values its customer’s voice, and has actively
survey / consumer satisfaction trends? engaged external independent agencies who carry out
Customer Satisfaction Survey for and on behalf of the
Company to assess the consumer satisfaction levels for its
products and consumer trends.

REPORT ON CORPORATE GOVERNANCE

Company’s Philosophy on Corporate the Board of Directors comprising of non-executive
Governance directors. During the year, Mr. S. Raghunandan, Whole
Time Director and Chief Executive Officer of your
Your Company’s philosophy is to conduct business
Company relinquished his office as such w.e.f. May 23,
and its dealings with all stakeholders in compliance
2016 and Mr. Bipin R. Shah, Independent Director of your
with law and high standards of business ethics and
Company resigned from the Board of your Company on
to exceed the statutory requirements with regard to
August 11, 2016 and thus, the Board currently comprises
Corporate Governance. Your Company would continue
of 6 (Six) Directors of whom 3 (Three) are Executive
to strengthen its principles of transparency, fairness,
Directors and 3 (Three) are Independent Directors.
and accountability to generate long-term value for its
Mr. M. P. Ramachandran is the Promoter and the Chairman
shareholders on a continuous and sustainable basis in
& Managing Director of your Company and accordingly
harmony with the interests of all other stakeholders.
50 percent of the Board consists of Independent
Your Company is in compliance with all the regulations Directors. The composition of the Board of Directors of
stipulated by the Companies Act, 2013 and Rules your Company is in conformity with the provisions of
thereof, and provisions under Chapter IV of the SEBI Companies Act, 2013 and Regulation 17 of the Listing
(Listing Obligations and Disclosure Requirements) Regulations.
Regulation, 2015 (hereinafter referred to as ‘Listing
During the year ended on March 31, 2017, the Board of
Regulations’). The following Report together with the
Directors of your Company met six times viz., on May
information contained in the Management Discussion
23, 2016, August 11, 2016, October 25, 2016, December
and Analysis Report and other parts of Annual Report
8, 2016, January 20, 2017 and March 31, 2017. The last
constitutes your Company’s compliance with the
Annual General Meeting (AGM) of your Company was
Corporate Governance requirements.
held on July 21, 2016.
Board of Directors The details of composition of the Board of Directors,

category of Directors and the relationship between
Composition:
the Directors inter-se and attendance of the Directors
The Board of Directors of your Company represents an at the aforesaid Board meetings and Annual General
optimum combination of executive and non-executive Meeting are as under:
directors with one woman director and fifty percent of
Name of the Director Category/ Designation Directors’ Relationship with other Number of Attendance
Identification Directors Board Meetings at the Last
Number attended in FY Annual General
2016-17 Meeting
Mr. M. P. Ramachandran Promoter/ Chairman & 00553406 Father of 6 Yes
Managing Director Ms. M. R. Jyothy
Mr. K. Ullas Kamath Joint Managing Director & 00506681 None 5 Yes
Chief Financial Officer
Mr. S. Raghunandan# Whole Time Director & 02263845 None 1 No
Chief Executive Officer
Ms. M. R. Jyothy Whole Time Director & 00571828 Daughter of 6 Yes
Chief Marketing Officer Mr. M. P. Ramachandran
Mr. Nilesh B. Mehta Independent Director 00199071 None 6 Yes
Mr. K. P. Padmakumar Independent Director 00023176 None 3 No
Mr. Bipin R. Shah* Independent Director 00006094 None 2 Yes
Mr. R. Lakshminarayanan Independent Director 00238887 None 5 No
# Ceased to be a Whole Time Director and Chief Executive Officer w.e.f. May 23, 2016.
* Ceased to be an Independent Director w.e.f. August 11, 2016.

Board Members and their Directorships in other Public Limited Companies and Committees thereof as on March
31, 2017:
Name of Directors Directorships in other Committee positions in other

Public Limited Companies # Public Limited Companies @
Public Listed Member Chairman
Mr. M. P. Ramachandran 2 - 2 -
Mr. K. Ullas Kamath 1 1 2 -
Ms. M. R. Jyothy 1 - - -
Mr. Nilesh Mehta - 1 - -
Mr. K. P. Padmakumar 2 - 1 1
Mr. R. Lakshminarayanan 1 1 2 1
# Excludes directorship in Indian Private Limited Companies, Foreign Companies, Companies under section 8 of the Companies
Act, 2013 and that of your Company.
@ Only chairmanship / membership of Audit Committee and Stakeholders’ Relationship Committee are considered excluding
that of your Company. Committee Membership(s) and Chairmanship(s) are counted separately.
Familiarization Programmes Representatives of Internal Auditors and Statutory

Auditors were invitees to the Audit Committee Meeting.
The details of familiarization programmes imparted to
independent directors are uploaded on the website of
Terms of Reference of Audit Committee
your Company and can be accessed through weblink:
http://www.jyothylaboratories.com/corporate- The Terms of reference of the Audit Committee of your
governance.php Company are in accordance with Section 177 and other
applicable provisions of the Companies Act, 2013 and
Audit Committee the Rules framed thereunder and Regulation 18 of the
Listing Regulations read with Part C of Schedule II of
The Board of your Company has constituted a well-
the Listing Regulations, which inter alia include the
qualified, financially literate and independent Audit
following:
Committee with more than two third of its members as
Independent Directors and Non-Executive Directors. 1. Oversight of the Company’s financial reporting
All Members of the Audit Committee possess expert process and the disclosure of its financial
knowledge of Accounts, Audit and Finance. The information to ensure that the financial statement
Company Secretary acts as the Secretary to the Audit is correct, sufficient and credible;
Committee. 2. Recommendation for appointment, remuneration
and terms of appointment of Auditors of the
Composition, Meetings and Attendance Company;
During the year under review i.e. April 1, 2016 to March
31, 2017, five Meetings of Audit Committee were held 3. Approval of payment to the Statutory Auditors
on May 23, 2016, August 11, 2016, October 25, 2016, for any other services rendered by the Statutory
January 20, 2017 and March 31, 2017 respectively. The Auditors;
Composition of the committee and attendance of each 4. Reviewing with the management, the Annual
Committee Member is as under: Financial Statements and Auditor’s Report thereon
before submission to the Board for approval, with
Sr. Name of the Directors No. of Meetings
No. attended particular reference to:
1 Mr. Nilesh B. Mehta (Chairman) – 5 a. Matters required to be included in the Directors’
Independent
Responsibility Statement to be included in the
2 Mr. K. P. Padmakumar - Independent 3
Board’s report in terms of clause (c) of sub-
3 Mr. Bipin R. Shah – Independent* 2
section 3 of Section 134 of the Companies Act,
4 Mr. K. Ullas Kamath – Joint Managing 5
Director & CFO
2013,
5 Mr. R. Lakshminarayanan - 2 b. Changes, if any, in accounting policies and
Independent** practices and reasons for the same,
*Ceased to be the member of the Audit Committee c. Major accounting entries involving estimates
w.e.f. August 11, 2016. based on the exercise of judgment by
** Appointed as a member of the Audit Committee management,
w.e.f. October 25, 2016.

d. Significant adjustments made in the financial any area of concern;

statements arising out of audit findings,
17. To look into the reasons for substantial defaults in
e. Compliance with the listing and other legal the payment to the depositors, debenture holders,
requirements relating to financial statements, shareholders (in case of non-payment of declared
dividends) and creditors;
f. Disclosure of any related party transactions,
18. To review the functioning of the Whistle Blower
g. Modified opinion(s) in the draft Audit Report;
mechanism or Vigil mechanism;
5. Reviewing with the management, examine the
19. Approval of appointment of Chief Financial Officer
quarterly and annual financial statements and
(i.e. the Whole-Time Finance Director or any other
auditors’ report before submission to the Board for
person heading the finance function or discharging
approval;
that function) after assessing the qualifications,
6. Reviewing with the management, the statement experience and background, etc. of the candidate;
of uses/ application of funds raised through an
20. Carrying out any other function as is mentioned in
issue (public issue, rights issue, preferential issue,
the terms of reference of the Audit Committee.
etc.), the statement of funds utilized for purposes
other than those stated in the offer document/
prospectus/ notice and the report submitted by Nomination, Remuneration and
the monitoring agency monitoring the utilisation Compensation Committee
of proceeds of a public or rights issue, and making Composition, Meetings and Attendance
appropriate recommendations to the Board to take The Nomination, Remuneration and Compensation
up steps in this matter; Committee of your Company comprise of four
7. Review and monitor the Auditor’s independence Members and is constituted in accordance with
and performance, and effectiveness of audit Section 178 and other provisions of Companies Act,
process; 2013 and Regulation 19 of the Listing Regulations.
The Committee during the year ended March 31, 2017
8. Approval or any subsequent modification of met 3 times viz., on May 23, 2016, August 11, 2016 and
transactions of the Company with related parties; October 25, 2016. The Members of the Committee and
9. Scrutiny of inter-corporate loans and investments; their attendance at these meetings was as under:
10. Valuation of undertakings or assets of the Company, Sr. Name of the Directors Category No. of
wherever it is necessary; No. Meetings
Attended
11. Evaluation of internal financial controls and risk
management systems; 1 Mr. Nilesh B. Mehta Independent 3
(Chairman) Director
12. Reviewing with the management, performance of
2 Mr. M. P. Ramachandran Chairman & 3
statutory and internal auditors, adequacy of the
Managing
internal control systems;
Director
13. Reviewing the adequacy of internal audit function, 3 Mr. K. P. Padmakumar Independent 2
if any, including the structure of the internal audit Director
department, staffing and seniority of the official 4 Mr. R. Independent 3
heading the department, reporting structure, Lakshminarayanan Director
coverage and frequency of internal audit;
14. Discussion with Internal Auditors of any significant Terms of Reference of Nomination, Remuneration
findings and follow up there on; and Compensation Committee
The role and terms of reference of the Committee are in
15. Reviewing the findings of any internal investigations
line with the provisions of Regulation 20 read with Part
by the Internal Auditors into matters where there
D of Schedule II of the Listing Regulations and section
is suspected fraud or irregularity or a failure of
178 of the Companies Act, 2013. The Committee is
internal control systems of a material nature and
empowered to do the following:
reporting the matter to the Board;
(1) To formulate criteria for determining qualifications,
16. Discussion with the Statutory Auditors before the
positive attributes and independence of a director
audit commences, about the nature and scope of
and recommend to the Board, a policy relating to
audit as well as post-audit discussion to ascertain

appointment and remuneration for Directors, Key in clause 5 of the Securities and Exchange Board
Managerial Personnel and other senior employees; of India (Employee Stock Option Scheme and
Employee stock Purchase Scheme) Guidelines,
(2) To formulate criteria for evaluation of the members
1999 as amended from time to time and matters
of the Board of Directors including Independent
incidental/ supplemental thereto;
Directors, the Board of Directors and the
Committees thereof; (11) To recommend to the Board of Directors, their
decisions and further actions as they may deem fit.
(3) To devise policy on Board Diversity;
(4) To identify persons, qualified to become directors Performance evaluation criteria for Independent
and who may be appointed in senior management Directors:
in accordance with the criteria laid down, and As per the Remuneration policy of your Company, the
recommend to the Board, their appointment and Independent Directors will be evaluated on five criterias
where necessary, their removal; as mentioned below:
(5) To formulate policy ensuring the following: 1) Ethics and Values
a. The level and composition of remuneration is 2) Knowledge and proficiency
reasonable and sufficient to attract, retain and
motivate directors of the quality required to 3) Diligence
run the Company successfully, 4) Behavioural traits; and
b. Relationship of remuneration to performance 5) Efforts for personal development
is clear and meets appropriate performance
benchmarks, and The above five criteria will be further divided into sub-
criteria, not exceeding five for each of the criteria.
c. remuneration to directors, key managerial These will also bring out whether or not a Director has
personnel and senior management involves necessary positive attributes required for discharging
a balance between fixed and incentive pay his duties, functions and responsibilities as the Director
reflecting short and long term performance of your Company.
objectives appropriate to the working of the
Company and its goals; A rating scale of 5 (five) is used to give scores for each
of the sub criteria:
(6) To design Company’s policy on specific
remuneration packages for Executive/ Whole Time 1) Outstanding- 5
Directors and Key Managerial Personnel including 2) Very Good- 4
pension rights and any other compensation
3) Good- 3
payment;
4) Unsatisfactory- 2
(7) To determine, peruse and finalize terms and
conditions including remuneration payable 5) Poor- 1
to Executive/ Whole Time Directors and Key
Each evaluating Director will provide score for each
Managerial Personnel of the Company from time
of the Independent Director. The evaluating Director
to time;
will give score for each of the sub-criteria comprising
(8) To review, amend or ratify the existing terms each of the criteria mentioned above. The score will be
and conditions including remuneration payable based on the rating scale as mentioned above.
to Executive/Whole Time Directors and Key
The evaluator will have to provide reasons for rating
Managerial Personnel of the Company;
score of 1 or 2 and suggestions, if any, for improvement.
(9) To apply to the Ministry of Corporate Affairs, New The final score for each of the independent director
Delhi or any authority regarding the approval for will be arrived at in the manner given below:
payment of remuneration to Executive/ Whole
i) The score for each of the criteria will be arrived
Time Directors as may be required under the said
at by aggregating the scores for sub-criteria and
Act;
dividing them by the number of sub criteria.
(10) To consider and approve ESOP Scheme and
ii) The total score from each evaluator will be arrived
to perform all such acts, deeds and functions
at by adding up the scores of all criteria and dividing
including, but not limited to, the matters specified
the total by 5 (five).

iii) The total score for an independent director will be b) The determination of remuneration for other
arrived at by adding the scores from all evaluators employees shall be governed by the HR Policy.
and dividing such total score by the number of
c) The proposal for the appointment of an Executive
evaluators.
Director/ Key Managerial Personnel shall provide
The Chairman will convey the result of the evaluation to necessary information in this regard which the
the concerned Independent Director. In case the total Board will consider in arriving at the conclusion as
score of an Independent Director is less than or equal to whether or not the remuneration offered to the
to 2, the Chairman shall convey to such Independent candidate is appropriate, reasonable and balanced
Director the reasons for the score mentioned by the as to the fixed and variable portions (including the
evaluator(s), and suggestions for improvements, if any. commission).
If an Independent Director gets score of less than or
d) The remuneration payable to the Executive
equal to 2 for his whole tenure (as provided under the
Directors, including the Commission and value of
provisions of the Companies Act, 2013), he shall not
the perquisites, shall not exceed the permissible
be eligible for re-appointment for a further term as
limits as are mentioned within the provisions of the
Director of your Company.
The Performance Evaluation of Executive Directors
e) The Executive Directors shall not be eligible to
and Key Managerial Personnel shall be carried out by
receive sitting fees for attending the meetings of
the Independent Directors in the manner mentioned
the Board or committees thereof of the Company
above taking into account the performance against
and its subsidiary Companies.
the corporate goals and objectives on the basis of
performance parameter set for each Executive Director f) The Independent Directors shall not be eligible
and Key Managerial Personnel. to receive any remuneration/ salary from the
Company. However, the Non-Executive Directors
Remuneration Policy shall be paid sitting fees for attending the meeting
Your Company follows a policy on remuneration of of the Board and committees thereof and
Directors and Senior Management Employees. commission, as may be decided by the Board/
Shareholders from time to time.
a) While determining the remuneration of Executive
Directors and Key Managerial Personnel, the Board g) The Independent Directors shall also be eligible
considers following factors: to reimbursement of reasonable out-of-pocket
expenses incurred by them for attending meetings
i) Criteria/ norms for determining the of Board, Committees or Shareholders, including
remuneration of such employees prescribed in the travelling and lodging & boarding expenses on
the HR Policy. an actual basis.
ii) Existing remuneration drawn. The amount of sitting fees and commission
iii) Industry standards, if the data in this regard is payable to Independent Directors shall not exceed
available. the limits prescribed under the provisions of the
iv) The job description.
Explanation: For the purposes of this Policy,
v) Qualifications and experience levels of the Remuneration shall mean the Cost to the
candidate. Company and shall include the salary, allowances,
vi) Remuneration drawn by the outgoing perquisites, performance incentive and any other
employee, in case the appointment is to fill facility provided or payment made to or on behalf
a vacancy on the death, resignation, removal of the employee.
etc. of an existing employee. h) Independent Directors shall not be eligible to
vii) The remuneration drawn by other employees participate in the ESOP Scheme, if any.
in the grade with matching qualifications and
seniority, if applicable.

Details of Remuneration paid to Directors for the financial year ended March 31, 2017:
Executive Directors
(Amount in H)
Name of the Director Salary including Provident Superannuation Commission Stock Options Total
Benefits & Perquisites Fund payable
M. P. Ramachandran 1 - - 4,21,03,510 - 4,21,03,511
K. Ullas Kamath 2,02,90,323 24,34,839 20,29,032 3,78,93,159 - 6,26,47,353
S. Raghunandan# 63,52,258 6,89,806 - - 14,45,24,397* 15,15,66,461
M. R. Jyothy 1,18,80,000 14,00,400 - - - 1,32,80,400
For further details please refer to Note No. 35 of the Notes to Financial Statements which form part of the Annual
Report.
# Relinquished office of the Whole Time Director and Chief Executive Officer w.e.f. May 23, 2016
*Initially 27,15,352 stock options were granted, out of which 4,52,559 options were cancelled by mutual agreement
between the Company and the Grantee. The options shall vest over a period of 4 years on the basis of time and
performance. Exercise period will be 5 years from the date of vesting of options and Exercise price will be H1/- per
share. Out of the 22,62,793 options granted, Mr. S. Raghunandan has exercised 4,52,558 options and accordingly
your Company has allotted 4,52,558 shares to him at the exercise price of H1/- per share.
Notice period and severance fees for all Executive Directors is six months’ notice or six months’ salary in lieu
thereof or as may be mutually decided between the Director and the Company.
Non-Executive Directors’ Compensation and Shareholding:
As per the resolution passed by your Company through Postal Ballot dated May 23, 2012, the Members had
approved commission payable to the Non-Executive and Independent Directors of your Company for an amount
not exceeding 1% of the net profits of your Company calculated in accordance with the provisions of Section
349 and 350 of the Companies Act, 1956 (Section 198 of the Companies Act, 2013) in such manner as may be
determined by the Board of Directors from time to time within the said limits.
Accordingly, Independent Directors were paid sitting fees and commission during the year under review.
Details of sitting fees & commission paid to the Independent Directors during the year 2016-17 along with their
Shareholding as on date of this Report are as under:
Sr. No. Name of the Directors Sitting Fees (H) Commission (H) No. of Shares held
1 Mr. Nilesh B. Mehta 1,55,000 8,00,000 -
2 Mr. Bipin R. Shah 60,000 8,00,000 -
3 Mr. K. P. Padmakumar 90,000 8,00,000 -
4 Mr. R. Lakshminarayanan 1,05,000 8,00,000 -
Stakeholders’ Relationship Committee

The Stakeholders’ Relationship Committee inter-alia monitors and reviews investors’ grievances and is responsible
for the satisfactory redressal of investors’ complaints and recommends measures for overall improvement in the
quality of services.
The Committee is headed by Mr. Nilesh B. Mehta, Independent Director and consists of other three members as
stated below. During the year ended March 31, 2017, this Committee had 4 meetings which were held on May 23,
2016, August 11, 2016, October 25, 2016 and January 20, 2017 and attended by the members as under:
Sr. No. Name of the Directors Category No. of Meetings Attended

1 Mr. Nilesh B. Mehta Independent Director 4
2 Mr. Bipin R. Shah* Independent Director 2
3 Mr. M. P. Ramachandran Chairman & Managing Director 4
4 Mr. R. Lakshminarayanan** Independent Director 1
*Ceased to be the member of the Committee w.e.f. August 11, 2016.
** Appointed as a member of the Committee w.e.f. October 25, 2016.

Mr. Shreyas Trivedi, Head- Legal & Company Secretary is designated as the Compliance Officer of your Company
who oversees the redressal of investor grievances.
During the financial year, your Company received 48 complaints/ correspondences and all of them were disposed
off.
Corporate Social Responsibility (CSR) Committee

The Corporate Social Responsibility (CSR) Committee was constituted pursuant to Section 135 of the Companies
Act, 2013 read with the Companies (Corporate Social Responsibility Policy) Rules, 2014, on May 22, 2014. The
Composition of the Committee and attendance of the members of the Committee at the meetings held is as
below. The CSR Committee met two times during the year ended March 31, 2017 viz., on May 23, 2016 and January
20, 2017.
Sr. No. Name of the Directors Category No. of Meetings Attended

1 Mr. M. P. Ramachandran Chairman & Managing Director 2
2 Mr. K. P. Padmakumar Independent Director 1
3 Ms. M. R. Jyothy Whole Time Director & Chief Marketing Officer 2
Mr. M. P. Ramachandran is the Chairman of the Committee. Your Company has formulated a CSR Policy and the
same is uploaded on the website of your Company, which can be accessed at the weblink –
http://www.jyothylaboratories.com/admin/docs/JLL_CSR%20Policy_Website.pdf
The terms of reference of the Corporate Social Responsibility Committee broadly includes the following:
(a) To formulate and recommend to the Board, a Corporate Social Responsibility Policy which shall indicate the
activities to be undertaken by your Company as specified in Schedule VII of the Companies Act, 2013 and the
review thereof at periodical intervals;
(b) To recommend the amount of expenditure to be incurred on the activities referred above;
(c) To monitor the expenditure incurred on the specified activities; and
(d) To monitor the implementation of Corporate Social Responsibility Policy of your Company from time to time.
Depository Escrow Account

As on March 31, 2017, 300 Equity Shares belonging to 3 applicants were lying in the Depository Escrow Account.
Aggregate number of shareholders in Suspense account lying at the 3

beginning of the year
Aggregate number of outstanding shares in Suspense account lying at 300
the beginning of the year
Number of shareholders who approached for transfer of shares from 0
Suspense account during the year
Number of Shareholders to whom shares were transferred from 0
Suspense account during the year
Number of Shares transferred from Suspense account during the year 0
Aggregate number of shareholders whose shares are lying in Suspense 3
account at the end of the year
Aggregate number of outstanding shares in Suspense account lying at 300
the end of the year

General Body Meeting
Annual General Meetings
Last three Annual General Meetings of your Company were held at the venue and time as detailed herein below:
Year Date of Annual Time of Special Resolutions passed

General Meeting Meeting
2016 July 21, 2016 11.00 a.m. Appointment of Mr. M. P. Ramachandran as the Chairman
25th AGM and Managing Director of the Company and payment of
remuneration.
2015 July 30, 2015 11.00 a.m. No Special Resolution passed
24th AGM
2014 August 13, 2014 10.30 a.m. 1. Power to borrow moneys in excess of paid up capital and
23rd AGM free reserves of the Company in terms of Section 180(1)(c)
of the Companies Act, 2013;
2. Power to create charge on the assets of the Company in
terms of Section 180(1)(a) of the Companies Act, 2013;
3. Consent for Adoption of Employee Stock Option Scheme
2014-A and to create, offer, issue and allot stock options to
Mr. S. Raghunandan;
4. Consent for Adoption of Employee Stock Option Scheme
2014 and to create, offer, issue and allot stock options to
permanent employees of the Company;
5. Consent for grant of stock options in excess of 1% of the
issued capital to Mr. S. Raghunandan;
6. Sale of stake in Jyothy Consumer Products Marketing
Limited to Associated Industries Consumer Products Private
Limited.
All the above meetings were held at M. C. Ghia Hall, Indian Textile Accessories & Machinery Manufacturers’
Association, Bhogilal Hargovindas Building, 4th Floor, 18/20 K. Dubhash Marg, Kala Ghoda, Mumbai – 400001.
All resolutions at the 23rd, 24th & 25th Annual General Meetings were passed through e-voting and physical ballots
cast at the AGM.
Special resolutions passed through Postal Ballot

During the year, Members had passed special resolutions approving issue of Non- Convertible Debentures on private
placement basis, Re-appointment of Mr. K. Ullas Kamath as the Joint Managing Director & Chief Financial Officer and
Re-appointment of Ms. M. R. Jyothy as the Whole Time Director & Chief Marketing Officer of your Company.
The Board had appointed Mr. Himanshu S. Kamdar, Partner, Rathi & Associates as the Scrutinizer to conduct the
postal ballot voting process in a fair and transparent manner.
Special Resolutions Votes cast in favour Votes cast against Date of

No. of Votes % No. of Votes % declaration of
results
Private Placement of Non- 148273842 99.92 112022 0.08 December 1,
Convertible Debentures 2016
Re-appointment of Mr. K. Ullas 148009352 98.69 1968737 1.31 December 1,
Kamath as the Joint Managing 2016
Director & Chief Financial Officer
Re-appointment of Ms. M. R. 147643104 98.44 2334985 1.56 December 1,
Jyothy as the Whole Time Director 2016
& Chief Marketing Officer

Procedure for postal ballot has formulated the Policy on dealing with related
In compliance with Regulation 44 of the Listing party transactions and the same is available on the
Regulations and Section 108, 110 and other applicable website of your Company and a web link thereto is
provisions of the Companies Act, 2013, read with Rule as below:
22 of the Companies (Management and Administration http://www.jyothylaboratories.com/admin/docs/
Rules, 2014, your Company provides electronic voting RPT_JLL_Website.pdf
facility to all its members, to enable them to cast
their votes electronically. Your Company engages the Transactions with related parties, as per
services of CDSL for the purpose of providing remote requirements of Accounting Standard 18, are
e-voting facility to all its Members. Members have the disclosed in Notes to Accounts annexed to the
option to vote either by physical ballot or through Financial Statements.
remote e-voting. 2. Your Company has followed all relevant Accounting
Your Company dispatches the postal ballot notices Standards while preparing Financial Statements
and forms along with postage prepaid business reply and no treatment different from that prescribed in
envelopes to its Members whose names appear on the an Accounting Standard has been followed.
Register of Members/ list of beneficiaries as on a cut- 3. There are no pecuniary relationships or transactions
off date. The postal ballot notice is sent to Members of Non-Executive Directors vis-à-vis your
in electronic form to the email addresses registered Company which has potential conflict of interest
with their depository participants (in case of electronic with the interests of your Company at large.
shareholding)/ your Company's Registrar and Share
4. No penalties or strictures have been imposed on
Transfer Agents (in case of physical shareholding). Your
your Company by the Stock Exchanges or SEBI or
Company also publishes a notice in the newspaper
any statutory authority on any matter related to
declaring the details of completion of dispatch and
capital markets during the last three years.
other requirements as mandated under the Act and
applicable Rules. 5. Your Company has in place Whistle Blower policy
and the details of same are provided in the Board’s
Voting rights are reckoned on the number of equity
Report. Further, it is affirmed that no personnel has
shares registered in the name of Members as on the
been denied access to the Audit Committee.
cut-off date. Members desiring to exercise their votes
by physical postal ballot forms are requested to return 6. Your Company has laid down procedures to inform
the forms duly completed and signed, to the scrutinizer Board members about the risk assessment and
on or before the close of voting period. Members minimization procedures.
desiring to exercise their votes by electronic mode are
7. The policy for determining criteria of material
requested to vote before close of business hours on
subsidiaries is formulated by your Company and is
the last date of e-voting.
available on the website of your Company at the
The scrutinizer submits his report to the Chairman, after web link thereto is as below:
the completion of scrutiny, and the consolidated results
of the voting by postal ballot are then announced by
PMS_JLL_Website.pdf
the Chairman / authorized officer. The results are also
displayed on the website of your Company, http://www. 8. Your Company has formulated the Policy on
jyothylaboratories.com, besides being communicated Distribution of Dividend and the same is available
to the stock exchanges, the depositories and Registrar on the website of your Company and a web link
and the Share Transfer Agent. The date of declaration thereto is as below:
of the results by your Company is deemed to be the
http://www.jyothylaboratories.com/
date of passing of the resolutions.
management-policies.php
None of the businesses proposed to be transacted at
the ensuing 26th Annual General Meeting require the Code of Conduct
passing of a special resolution by way of postal ballot. The Board has adopted the code of conduct for
all its Directors and Senior Management which has
Disclosures been displayed on your Company’s website www.
1. During the year under review, there were no jyothylaboratories.com. All Board members and senior
materially significant related party transactions that management personnel have affirmed compliance
may have potential conflict of interest with the with the code of conduct on annual basis. A declaration
interests of your Company at large. Your Company to this effect as required under the Listing Regulations

regarding compliance of Code of Conduct by the Disclosure on Compliance with Corporate
Chairman and Managing Director of your Company Governance Requirements:
forms part of this Annual Report.
Your Company has complied with all the corporate
governance requirements specified in Regulation
Means of communication 17 to 27 and clauses (b) to (i) of sub-regulation (2) of
Your Company publishes its Quarterly and Regulation 46 of the SEBI (Listing Obligations and
Annual Financial results generally in Business Disclosure Requirements) Regulations, 2015, wherever
Standard and Sakal after submitting it to the applicable to your Company.
Stock Exchanges once approved by the Board of
Directors of your Company. The said results are Your Company has complied with all the requirements
also available on the website of your Company at of Corporate Governance Report as specified in
www.jyothylaboratories.com. Official Press releases, sub-paras (2) to (10) of Schedule V(c) of the Listing
Conference call transcripts and presentation made to Regulations.
the institutional investors/ Analysts are also available on
the aforesaid website of your Company. General Shareholder Information
a) Annual General Meeting: 26th Annual General
MD/ CFO Certificate Meeting of your Company will be held on July
The Chairman & Managing Director (CMD) and Joint 11, 2017 at 11.00 a.m. at M. C. Ghia Hall, Indian
Managing Director & Chief Financial Officer (CFO) have Textile Accessories & Machinery Manufacturers’
issued the certificate in terms of Regulation 17(8) read Association, Bhogilal Hargovindas Building, 4th
with Part B of Schedule II to the Listing Regulations. Floor, 18/20, K. Dubhash Marg, Kala Ghoda,
The said certificate is annexed and forms part of the Mumbai – 400001
Annual Report. b) The Financial year covered by this Annual Report:
April 1, 2016 to March 31, 2017.
Commodity Price Risk or Foreign
c) Book Closure Dates: From Wednesday, July 5,
Exchange Risk and Hedging Activities: 2017 to Tuesday, July 11, 2017 (both days inclusive).
Your Company has exposure to various commodities
d) Dividend Payment Date: On or before July 15,
involved in the manufacturing of the final products
2017, subject to the approval of Shareholders at
of your Company. Any fluctuation in prices of basic
the ensuing Annual General Meeting scheduled to
commodities like Benzene, Crude, Naptha, Palm and
be held on July 11, 2017.
Palm Kernel may have direct impact on the products
falling under detergent and dish wash category. Similarly, e) Listing on Stock Exchanges and Stock Codes:
volatility in prices of Polyethylene Terephthalate (PET) The equity shares of your Company are listed on
and Polypropylene (PP) may lead to increase in prices BSE Limited (BSE) and the National Stock Exchange
of container. Any rise in Kraft paper prices can impact of India Limited (NSE). The annual listing fees for
the Secondary packaging cost for the products of your the year 2016-17 have been paid to both the
Company. stock exchanges. Following table indicates your
Company’s stock exchange codes.
Your Company has a mechanism in place wherein a
dedicated team keeps a close watch on the market Name and Address of Stock Stock Code
behavior and adopts best purchase practices to Exchange
minimize the effect of inflation.
BSE Limited (BSE), 532926
Your Company has minimal exposure to foreign Phiroze Jeejeebhoy Towers,
exchange risk vis-à-vis, total Sales / purchases of your Dalal Street, Mumbai – 400 001
Company and the transactions are significantly in National Stock Exchange of India JYOTHYLAB
Indian Currency. Limited (NSE)
Your Company has not undertaken any hedging Exchange Plaza, Plot No. C/1,
activities during the year under review. G Block, Bandra Kurla Complex,
Bandra (East), Mumbai – 400 051
ISIN Number INE668F01031

f) Registrar & Share Transfer Agents:

Link Intime India Private Limited
C-101, 247 Park, LBS Marg,
Vikhroli West, Mumbai- 400083,
Phone: 0091 (0)22 49186000, Fax: 0091 (0)22 49186060
E-mail: [email protected]
g) Share Transfer System:
Share Transfers are registered and returned by the Registrars & Share Transfer Agents within a period of 15 days
from the date of receipt of the documents, provided the same are in order. Your Company has constituted
Securities Transfer Committee which considers the transfer proposals generally on a weekly basis.
h) Stock Market Price for the year:
The monthly high/ low stock price of your Company’s equity shares listed on the Bombay Stock Exchange
(BSE) and National Stock Exchange of India Limited (NSE) from April 01, 2016 to March 31, 2017 are given
below:
Month BSE Market Price (H) NSE Market Price (H)

High Low High Low
April 2016 310.85 285.95 311.90 284.40
May 2016 329.40 281.45 329.90 281.10
June 2016 323.80 270.10 323.70 279.00
July 2016 309.50 286.25 309.90 286.60
August 2016 315.60 282.60 316.75 284.00
September 2016 359.50 307.00 359.90 308.75
October 2016 371.00 346.20 370.45 342.55
November 2016 376.40 318.00 376.00 323.80
December 2016 381.00 322.50 380.95 321.00
January 2017 359.75 328.00 359.50 330.00
February 2017 382.85 342.70 382.90 343.65
March 2017 377.00 342.00 378.50 341.30
i) Share Price (H) in comparison with BSE Sensex:
ANNUAL COMPARISON OF COMPANY SHARE PRICE & BSE SENSEX
385 29500
375
28500
365
355
SHARE PRICE
27500
SENSEX
345
IN H
BSE
335 26500
325
25500
315
305 24500
295
23500
285
275 22500
April/16
May/16
June/16
July/16
August/16
September/16
October/16
November/16
December/16
January/17
February/17
March/17
Price
Sensex
MONTHS

j) Shareholding Pattern as on March 31, 2017:
Shareholding pattern of your Company’s equity shares in broad categories as on March 31, 2017 is given below:
Category No. of Shares Percent

1 Promoter and Promoter Group 12,15,33,847 66.89
2 Institutions
Mutual Funds 1,12,45,092 6.19
Financial Institutions / Banks 12,956 0.01
Insurance Companies 61,85,679 3.40
Foreign Portfolio Investors (including Foreign Institutional Investors) 2,42,90,534 13.37
3 Non-Institutions
Bodies Corporate 56,07,044 3.09
Individuals 1,12,45,598 6.19
Non Resident Indians (Repatriable/ Non repatriable) 4,83,382 0.27
Trusts 2,00,946 0.11
Clearing Members 5,60,814 0.31
Hindu Undivided Family 3,16,246 0.17
Foreign Nationals 1,586 0.00
Total: 18,16,83,724 100.00
k) Distribution of Shareholding as on March 31, 2017:
Sr. Slab of shareholding Shareholders Shares Value

No No. of Equity shares held Number In % Face Value (H) In %
From To
1. 1 500 75,465 95.82 66,47,895 3.66
2. 501 1000 1,780 2.26 12,79,582 0.70
3. 1001 2000 766 0.97 11,02,816 0.61
4. 2001 3000 229 0.29 5,69,147 0.31
5. 3001 4000 111 0.14 3,91,893 0.22
6. 4001 5000 67 0.09 3,10,585 0.17
7. 5001 10000 138 0.18 9,94,305 0.55
8. 10001 & Above 199 0.25 17,03,87,501 93.78
Total
l) Dematerialization of shares: 4. LANE NO 2, PHASE NO 2, SIDCO INDUSTRIAL

As on March 31, 2017, 99.55% of the total equity COMPLEX, BARI BARHMANA, DIST.: SAMBA
share capital was held in dematerialized form. (JAMMU) - 180001, JAMMU & KASHMIR.
m) Outstanding GDRs / ADRs / Warrants or any 5. MP IV/ 101 B, P.O.: KOLAGAPPARA, SULTHAN
convertible instruments: During the year 2016-17, BATHERY- 673591, KERALA.
your Company has not issued any GDRs / ADRs /
6. KANDANASSERY, VIA-ARIYANNUR,
Warrants or any convertible instruments.
GURUVAYUR- 680101, DIST. : TRICHUR ,
n) Plant Locations: Manufacturing Plants of your KERALA.
Company are situated at the following locations:-
7. Plot No 201, SECTOR I, PITHAMPUR
1. SHED NO.25/26, IDA KOTHUR, DIST.:
INDUSTRIAL AREA, DIST. DHAR - 454775,
MEHBOOB NAGAR - 509228, TELANGANA.
MADHYA PRADESH.
2. E.P.I.P COMPLEX, AIDC- AMINGAON,
8. 131 PERALAM MAIN ROAD, P.O.: THIRUNALLAR,
GUWAHATI - 781 031, ASSAM.
DIST.: KARAIKKAL - 609607, PONDICHERRY.
3. VILLAGE: KATHA, P.O.: BADDI, DIST.: SOLAN -
9. R.S. No 12/1 & 2, UJALA NAGAR INDL.
173205, HIMACHAL PRADESH.
ESTATE, UJALA ROAD, THETHAMPAKKAM, VAI

VAZHUDAVUR, P.O.: SUTHUKENY - 605502, ESTATE,VILLAGE MUNDIYAKI, ROORKEE,

PONDICHERRY. HARIDWAR, UTTARAKHAND- 247670.
10. PLOT NO. 6, 7 & 8, BEARING KHASARA Nos. 361, 19. SURVEY NO. 910/7/1 DOKMARDI, AMLI
366 & 370, KIE INDUSTRIAL ESTATE, VILLAGE : SILVASSA, DADRA AND NAGAR HAVELI -
MUNDIYAKI- 247667, UTTARAKHAND. 396230
11. KHASRA NO. 119, PARGANA BHAGWANPUR, o) Shareholders & Investors Correspondence:
VILLAGE RAIPUR, HARIDWAR, 247661, Shareholders should address their correspondence
UTTARAKHAND. to your Company and/ or its Registrars and Share
Transfer Agents at the following address:
12. PLOT NO.656, NEW LIGHT HOUSE MORE,
BISHNUPUR, DIST.: BANKURA -722122, WEST 1. Link Intime India Private Limited
BENGAL. Unit: Jyothy Laboratories Limited
C-101, 247 Park, LBS Marg,
13. PLOT NO. 50, BRAHMAPUTRA INDUSTRIAL
Vikhroli West, Mumbai- 400083,
PARK,GOURIPUR, NORTH GUWAHATI,
Phone: 0091 (0)22 49186000,
KAMRUP, ASSAM- 781031.
Fax: 0091 (0)22 49186060
14. PLOT NO. 109, BRAHMAPUTRA INDUSTRIAL E-mail: [email protected]
PARK,GOURIPUR, NORTH GUWAHATI, Contact Person: Mr. Ishwar Suvarna
KAMRUP, ASSAM- 781031.
2. Mr. Shreyas Trivedi
15. JAGATI MINI INDUSTRIAL ESTATE,SILA Head- Legal & Company Secretary
SINDURI GHOPA, KAMALPUR,CHOWKIGATE, Jyothy Laboratories Limited
CHANGSARI, KAMRUP, ASSAM- 781031. ‘Ujala House’, Ramakrishna Mandir Road,
16. KANDANASSERY, VIA - ARIYANNUR, THRISSUR,
Mumbai – 400 059
KERALA- 680102.
Phone: 0091 (0)22 66892800,
17. R.S. NO.15, THETHAMPAKKAM VILLAGE, Fax: 0091 (0)22 66892805
SUTHUKENY POST, PONDICHERRY- 605502. E-mail: [email protected]
18. PLOT NO.18,19,20 & 21, BEARING
KHASARA NOS 366 & 367, KIE INDUSTRIAL
Sd/-
M. P. Ramachandran
(DIN: 00553406)
Declaration by the Chairman and Managing Director under SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015 regarding compliance with Code of
Conduct
In accordance with Regulation 34(3) read with Schedule V of SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015, I hereby confirm that all the Directors and the Senior Management personnel of the Company
have affirmed compliance with the Code of Conduct, as applicable to them, for the financial year ended March 31,
2017.
Sd/-
M. P. Ramachandran
(DIN: 00553406)

Certification by Managing Director and Joint Managing Director & Chief Financial
Officer (CFO) pursuant to Regulation 17(8) read with Part B of Schedule II of SEBI
(Listing Obligations and Disclosure Requirements) Regulations, 2015
We, M. P. Ramachandran, Chairman & Managing Director and K. Ullas Kamath, Joint Managing Director and Chief
Financial Officer of Jyothy Laboratories Limited, certify that:-
1. We have reviewed the financial statements and the cash flow statement for the year ended March 31, 2017 and
that to the best of our knowledge and belief:
a) these statements do not contain any materially untrue statement or omit any material fact or contain
statements that might be misleading;
b) these statements together present a true and fair view of the Company’s affairs and are in compliance with
existing accounting standards, applicable laws and regulations.
2. There are, to the best of our knowledge and belief, no transactions entered into by the Company during the
year which are fraudulent, illegal or violative of the Company’s code of conduct.
3. We accept responsibility for establishing and maintaining internal controls for financial reporting and that we
have evaluated the effectiveness of internal control systems of the Company pertaining to financial reporting
and we have disclosed to the Auditors and the Audit Committee, deficiencies in the design or operation of such
internal controls, if any, of which we are aware and the steps we have taken or propose to take to rectify these
deficiencies.
4. We have indicated to the Auditors and the Audit Committee that there are no
a) significant changes in internal control over financial reporting during the year;
b) significant changes in accounting policies during the year and that the same have been disclosed in the
notes to the financial statements; and
c) instances of significant fraud of which we have become aware and the involvement therein, if any, of
the management or an employee having a significant role in the Company’s internal control system over
financial reporting.
Sd/- Sd/-
M. P. Ramachandran K. Ullas Kamath
Chairman & Managing Director Joint Managing Director and CFO
(DIN: 00553406) (DIN: 00506681)

Independent Auditor’s Report on compliance with the conditions of Corporate

Governance as per provisions of Chapter IV of Securities and Exchange Board of India
(Listing Obligations and Disclosure Requirements) Regulations, 2015
The Members of
Jyothy Laboratories Limited
1. The accompanying Corporate Governance issued by the Institute of Chartered Accountants

Report prepared by Jyothy Laboratories Limited of India (“ICAI”). The Guidance Note on Reports
(hereinafter the “Company”), contains details as or Certificates for Special Purposes requires that
required by the provisions of Chapter IV of Securities we comply with the ethical requirements of the
and Exchange Board of India (Listing Obligations Code of Ethics issued by the Institute of Chartered
and Disclosure Requirements) Regulations, 2015, Accountants of India.
as amended (“the Listing Regulations”) (‘Applicable
6. We have complied with the relevant applicable
criteria’) with respect to Corporate Governance
requirements of the Standard on Quality Control
for the year ended March 31, 2017. This report is
(SQC) 1, Quality Control for Firms that Perform
required by the Company for annual submission
Audits and Reviews of Historical Financial
to the Stock Exchanges and to be sent to the
Information, and Other Assurance and Related
Shareholders of the Company.
Services Engagements.
Management’s Responsibility 7. The procedures selected depend on the auditor’s
2. The preparation of the Corporate Governance judgement, including the assessment of the
Report is the responsibility of the Management risks associated in compliance of the Corporate
of the Company including the preparation and Governance Report with the applicable criteria.
maintenance of all relevant supporting records Summary of key procedures performed include:
and documents. This responsibility also includes
i. Reading and understanding of the information
the design, implementation and maintenance of
prepared by the Company and included in its
internal control relevant to the preparation and
Corporate Governance Report;
presentation of the Corporate Governance Report.
ii. Obtained and verified that the composition
3. The Management along with the Board of
of the Board of Directors with respect to
Directors are also responsible for ensuring that
executive and non-executive directors has
the Company complies with the conditions of
been met throughout the reporting period;
Corporate Governance as stipulated in the Listing
Regulations, issued by the Securities and Exchange iii. Obtained and read the Directors Register as
Board of India. on March 31, 2017 and verified that atleast one
women director was on the Board during the
Auditor’s Responsibility year;
4. Pursuant to the requirements of the Listing
iv. Obtained and read the minutes of the
Regulations, our responsibility is to express a
meetings of Board of Directors and following
reasonable assurance in the form of an opinion
committees held during April 1, 2016 to March
whether the Company has complied with the
31, 2017:
specific requirements of the Listing Regulations
referred to in paragraph 1 above. (a) Audit Committee;
5. We conducted our examination of the Corporate (b) Nomination, Remuneration and

Governance Report in accordance with the Compensation Committee;
Guidance Note on Reports or Certificates for
(c) Stakeholders’ Relationship Committee;
Special Purposes and the Guidance Note on
and
Certification of Corporate Governance, both

(d) Corporate Social Responsibility with the conditions of Corporate Governance as
Committee. stipulated in the Listing Regulations, as applicable
as at March 31, 2017, referred to in paragraph 1
v. Obtained necessary representations and
above.
declarations from directors of the Company
including the independent directors ; and Other matters and Restriction on Use
9. This report is neither an assurance as to the future
vi. Performed necessary inquiries with the
viability of the Company nor the efficiency or
management and also obtained necessary
effectiveness with which the management has
specific representations from management.
conducted the affairs of the Company.
The above-mentioned procedures include
10. This report is addressed to and provided to the
examining evidence supporting the particulars
members of the Company solely for the purpose of
in the Corporate Governance Report on a test
enabling it to comply with its obligations under the
basis. Further, our scope of work under this
Listing Regulations with reference to Corporate
report did not involve us performing audit tests
Governance Report accompanied with by a report
for the purposes of expressing an opinion on
thereon from the statutory auditors and should
the fairness or accuracy of any of the financial
not be used by any other person or for any other
information or the financial statements of the
purpose. Accordingly, we do not accept or assume
Company taken as a whole.
any liability or any duty of care or for any other
purpose or to any other party to whom it is shown
Opinion
or into whose hands it may come without our prior
8. Based on the procedures performed by us as
consent in writing. We have no responsibility to
referred in paragraph 7 above, and according to
update this report for events and circumstances
the information and explanations given to us, we
occurring after the date of this report.
are of the opinion that the Company has complied
For S R B C & CO LLP

Chartered Accountants
ICAI Firm Registration Number: 324982E/E300003
per Vikram Mehta

Partner
Membership Number: 105938
Place of Signature: Mumbai

Date: May 18, 2017

Independent Auditor’s Report

To The Members of
Report on the Standalone Ind AS financial statements with the Standards on Auditing issued by the Institute
We have audited the accompanying standalone Ind of Chartered Accountants of India, as specified under
AS financial statements of Jyothy Laboratories Limited Section 143(10) of the Act. Those Standards require
(“the Company”), which comprise the Balance Sheet that we comply with ethical requirements and plan
as at March 31, 2017, the Statement of Profit and Loss, and perform the audit to obtain reasonable assurance
including the statement of Other Comprehensive about whether the standalone statements are free from
Income, the Cash Flow Statement and the Statement material misstatement.
of Changes in Equity for the year then ended, and a An audit involves performing procedures to obtain audit
summary of significant accounting policies and other evidence about the amounts and disclosures in the
explanatory information. financial statements. The procedures selected depend
on the auditor’s judgment, including the assessment of
Management’s Responsibility for the Standalone Ind
the risks of material misstatement of the standalone Ind
AS financial statements
AS financial statements, whether due to fraud or error.
The Company’s Board of Directors is responsible for
In making those risk assessments, the auditor considers
the matters stated in Section 134(5) of the Companies
internal financial control relevant to the Company’s
Act, 2013 (“the Act”) with respect to the preparation of
preparation of the standalone Ind AS financial statements
these standalone Ind AS financial statements that give
that give a true and fair view in order to design audit
a true and fair view of the financial position, financial
procedures that are appropriate in the circumstances.
performance including other comprehensive income,
An audit also includes evaluating the appropriateness of
cash flows and changes in equity of the Company
accounting policies used and the reasonableness of the
in accordance with accounting principles generally
accounting estimates made by the Company’s Directors,
accepted in India, including the Indian Accounting
as well as evaluating the overall presentation of the
Standards (Ind AS) specified under section 133 of
standalone Ind AS financial statements. We believe that
the Act, read with Companies (Indian Accounting
the audit evidence we have obtained is sufficient and
Standards) Rules, 2015, as amended. This responsibility
appropriate to provide a basis for our audit opinion on
also includes maintenance of adequate accounting
the standalone Ind AS financial statements.
records in accordance with the provisions of the Act
for safeguarding of the assets of the Company and for Opinion
preventing and detecting frauds and other irregularities; In our opinion and to the best of our information and
selection and application of appropriate accounting according to the explanations given to us, the standalone
policies; making judgments and estimates that are Ind AS financial statements give the information required
reasonable and prudent; and the design, implementation by the Act in the manner so required and give a true and
and maintenance of adequate internal financial control fair view in conformity with the accounting principles
that were operating effectively for ensuring the generally accepted in India, of the state of affairs of the
accuracy and completeness of the accounting records, Company as at March 31, 2017, its profit including other
relevant to the preparation and presentation of the Ind comprehensive income, its cash flows and the changes
AS financial statements that give a true and fair view and in equity for the year ended on that date.
are free from material misstatement, whether due to
fraud or error. Emphasis of Matter
Without qualifying our report and as more fully
Auditor’s Responsibility described in Note 35 to the financial statements, we draw
Our responsibility is to express an opinion on these attention to managerial remuneration paid/provided
standalone Ind AS financial statements based on our by the Company for the year ended March 31. 2017 in
audit. We have taken into account the provisions of excess of the limits prescribed under the Companies
the Act, the accounting and auditing standards and Act, 2013. As informed to us, the Company has filed
matters which are required to be included in the audit a revised application with the Central government
report under the provisions of the Act and the Rules for approval of such excess remuneration. Pending
made thereunder. We conducted our audit of the approval no adjustments are considered necessary in
standalone Ind AS financial statements in accordance these standalone Ind AS financial statements.

Report on Other Legal and Regulatory Requirements best of our information and according to the
1. As required by the Companies (Auditor’s report) explanations given to us:
Order, 2016 (“the Order”) issued by the Central i. The Company has disclosed the impact
Government of India in terms of sub-section (11) of pending litigations on its financial
of section 143 of the Act, we give in the Annexure 1 position in its standalone Ind AS financial
a statement on the matters specified in paragraphs statements – Refer Note 36(C) to the
3 and 4 of the Order. standalone Ind AS financial statements;
2. As required by section 143 (3) of the Act, we report ii. The Company did not have any long-term
that: contracts including derivative contracts
(a) We have sought and obtained all the for which there were any material
information and explanations which to the foreseeable losses.
best of our knowledge and belief were iii. There were no amounts which were
necessary for the purpose of our audit; required to be transferred to the Investor
(b) In our opinion, proper books of account Education and Protection Fund by the
as required by law have been kept by the Company.
Company so far as it appears from our iv. The Company has provided requisite
examination of those books; disclosures in Note 42 to the standalone
(c) The Balance Sheet, Statement of Profit Ind AS financial statements as to the
and Loss including the Statement of Other holding of Specified Bank Notes on
Comprehensive Income, the Cash Flow November 8, 2016 and December 30,
Statement and Statement of Changes in Equity 2016 as well as dealings in Specified Bank
dealt with by this Report are in agreement with Notes during the period from November
the books of account; 8, 2016 to December 30, 2016. Based on
(d) In our opinion, the aforesaid standalone Ind our audit procedures and relying on the
AS financial statements comply with the management representation regarding the
Accounting Standards specified under section holding and nature of cash transactions,
133 of the Act, read with the Companies including Specified Bank Notes, we report
(Indian Accounting Standards) Rules, 2015, as that these disclosures are in accordance
amended; with the books of accounts maintained by
the Company and as produced to us by
(e) On the basis of written representations
the Management.
received from the directors as on March 31,
2017, and taken on record by the Board of
Directors, none of the directors is disqualified
as on March 31, 2017, from being appointed as
a director in terms of section 164 (2) of the Act;
(f) With respect to the adequacy of the internal
financial controls over financial reporting of Chartered Accountants
the Company and the operating effectiveness ICAI Firm Registration Number: 324982E/E300003
of such controls, refer to our separate Report
in “Annexure 2” to this report;
(g) With respect to the other matters to be per Vikram Mehta
included in the Auditor’s Report in accordance
Place : Mumbai Partner
with Rule 11 of the Companies (Audit and
Auditors) Rules, 2014, in our opinion and to the Date: May 18, 2017 Membership No: 105938

Annexure 1 referred to in our report of even date on the

standalone Ind AS financial statements
Re: Jyothy Laboratories Limited (‘the Company)
(i) (a) The Company has maintained proper records are not applicable to the Company and hence not
showing full particulars, including quantitative commented upon.
details and situation of Property, Plant and (iv) In our opinion and according to the information
Equipment. and explanations given to us, the Company has
(b) All Property, Plant and Equipment have not not advanced loans to directors / to a Company
been physically verified by the management in which the Director is interested to which
during the year but there is a regular provisions of section 185 of the Companies Act
programme of verification which, in our 2013 apply and hence not commented upon. In
opinion, is reasonable having regards to size our opinion and according to the information and
of the Company and nature of its assets. No explanations given to us, provisions of section
material discrepancies were identified on such 186 of the Companies Act 2013 in respect of
verification. loans and advances given, investments made
(c) According to information and explanations and, guarantees, and securities given have been
given by the management the title deeds of complied with by the Company.
immovable properties included in Note 3(a) to (v) The Company has not accepted any deposits from
the financial statements are held in the name the public.
of the Company, except as noted below:- (vi) We have broadly reviewed the books of account
• In respect of two immovable properties maintained by the Company pursuant to the
(freehold land) aggregating to `2.21 lacs rules made by the Central Government for the
as at March 31, 2017, the title deeds were maintenance of cost records under section
not available with the Company and hence 148(1) of the Companies Act, 2013, related to
we are unable to comment on the same. the manufacture of products of the Company,
• In respect of the following, the immovable and are of the opinion that prima facie, the
properties are not held in the name of the specified accounts and records have been made
Company. The same is held in the name and maintained. We have not, however, made a
of the erstwhile entities which have been detailed examination of the same.
merged with the Company. (vii) (a) Undisputed statutory dues including
Total Nature Gross block Net Block provident fund, employees’ state insurance,
Number of (` in lacs) (` in lacs) income-tax, sales-tax, service tax, duty of
Cases custom, duty of excise, value added tax,
Freehold cess and other material statutory dues have
2 land and 2,734.68 2,661.05 generally been regularly deposited with the
building appropriate authorities though there has
been a slight delay in a few cases.
(ii) The management has conducted physical
(b) According to the information and explanations
verification of inventory at reasonable intervals
given to us, no undisputed amounts payable
during the year and no material discrepancies
in respect of provident fund, employees’ state
were noticed on such physical verification.
insurance, income-tax, service tax, sales-tax,
(iii) According to the information and explanations duty of custom, duty of excise, value added
given to us, the Company has not granted any tax, cess and other material statutory dues
loans, secured or unsecured to companies, firms, were outstanding, at the year end, for a period
Limited Liability Partnerships or other parties of more than six months from the date they
covered in the register maintained under section became payable.
189 of the Companies Act, 2013. Accordingly, the
(c) According to the records of the Company, the
provisions of clause 3(iii)(a), (b) and (c) of the Order
dues outstanding of income-tax, sales-tax,

wealth-tax, service tax, customs duty, excise duty, value added tax and cess that have not been deposited
on account of any dispute, are as follows:
Matter Year Forum where dispute is pending (Amounts in Lacs)
Commissioner and Tribunal High Court Grand total

Appellate
Excise 1998-00 10 - - 10
2006-15 120 1 - 121
Sales Tax 1999-00 4 - - 4
2000-04 516 52 640 1,208
2004-05 100 1 - 101
2005-06 413 213 - 625
2006-09 1,045 788 996 2,829
2009-10 127 128 663 917
2010-12 254 - 1,148 1,402
2012-13 322 - 139 461
2013-14 52 - - 52
2014-15 32 - - 32
2015-16 26 - - 26
2016-17 21 - - 21
Service Tax 2005-06 7 - - 7
2011-12 51 - - 51
Income Tax AY 2011-15 3,173 - - 3,173
Grand Total 6,272 1,182 3,586 11,040
(viii) In our opinion and according to the information (x) Based upon the audit procedures performed for
and explanations given by the management, the the purpose of reporting the true and fair view
Company has not defaulted in repayment of dues of the financial statements and according to
to a financial institution, bank, debenture holders the information and explanations given by the
or government. management, we report that no fraud by the
(ix) In our opinion and according to the information Company or on the Company by the officers and
and explanations given by the management, employees of the Company has been noticed or
the Company has utilized the monies raised by reported during the year.
way of debt instruments (debentures) for the (xi) According to the information and explanation
purposes for which they were raised. According given by the management and as more fully
to the information and explanations given by the described in Note 35 of the standalone Ind AS
management, the Company has not raised any financial statements, we report that managerial
money by way of initial public offer / further public remuneration for the year ended March 31, 2017
offer / term loans. is in excess of the limits applicable under section

197 of the Act, read with Schedule V thereto. (xv) According to the information and explanations
We are informed by the management that the given by the management, the Company has
Company has filed a revised application with not entered into any non-cash transactions with
the Central Government, seeking approval of directors or persons connected with him as
excess remuneration paid. Our report includes an referred to in Section 192 of the Companies Act,
Emphasis of Matter in this respect. 2013.
(xii) In our opinion, the Company is not a nidhi (xvi) According to the information and explanations
Company. Therefore, the provisions of clause 3(xii) given to us, the provisions of section 45-IA of the
of the order are not applicable to the Company Reserve Bank of India Act, 1934 are not applicable
and hence not commented upon. to the Company.
(xiii) According to the information and explanations
given by the management, transactions with the
related parties are in compliance with section 177
and 188 of Companies Act, 2013 where applicable
and the details have been disclosed in the notes
to the financial statements, as required by the For S R B C & CO LLP
applicable accounting standards. Chartered Accountants
(xiv) According to the information and explanations ICAI Firm Registration Number: 324982E/E300003
given to us and on an overall examination of the
balance sheet, the Company has not made any
preferential allotment or private placement of
shares or fully or partly convertible debentures per Vikram Mehta
during the year under review. Accordingly, the Place : Mumbai Partner
reporting requirements under clause 3(xiv) are not
Date: May 18, 2017 Membership No: 105938
applicable to the Company and not commented
upon.

Annexure 2 referred to in our report of even date on the
standalone Ind AS financial statements
Re: Jyothy Laboratories Limited (‘the Company)
Report on the Internal Financial Controls under Clause financial controls system over financial reporting and
(i) of Sub-section 3 of Section 143 of the Companies their operating effectiveness. Our audit of internal
Act, 2013 (“the Act”) financial controls over financial reporting included
We have audited the internal financial controls over obtaining an understanding of internal financial
financial reporting of Jyothy Laboratories Limited (“the controls over financial reporting, assessing the risk that
Company”) as of March 31, 2017 in conjunction with a material weakness exists, and testing and evaluating
our audit of the standalone Ind AS financial statements the design and operating effectiveness of internal
of the Company for the year ended on that date. control based on the assessed risk. The procedures
selected depend on the auditor’s judgement, including
Management’s Responsibility for Internal Financial the assessment of the risks of material misstatement of
Controls the financial statements, whether due to fraud or error.
The Company’s Management is responsible for
We believe that the audit evidence we have obtained
establishing and maintaining internal financial controls
is sufficient and appropriate to provide a basis for our
based on the internal control over financial reporting
audit opinion on the internal financial controls system
criteria established by the Company considering the
over financial reporting.
essential components of internal control stated in the
Guidance Note on Audit of Internal Financial Controls Meaning of Internal Financial Controls Over Financial
Over Financial Reporting issued by the Institute of Reporting
Chartered Accountants of India. These responsibilities A company’s internal financial control over financial
include the design, implementation and maintenance reporting is a process designed to provide reasonable
of adequate internal financial controls that were assurance regarding the reliability of financial reporting
operating effectively for ensuring the orderly and and the preparation of financial statements for external
efficient conduct of its business, including adherence purposes in accordance with generally accepted
to the Company’s policies, the safeguarding of accounting principles. A company’s internal financial
its assets, the prevention and detection of frauds control over financial reporting includes those policies
and errors, the accuracy and completeness of the and procedures that (1) pertain to the maintenance of
accounting records, and the timely preparation of records that, in reasonable detail, accurately and fairly
reliable financial information, as required under the reflect the transactions and dispositions of the assets
Companies Act, 2013. of the company; (2) provide reasonable assurance
that transactions are recorded as necessary to permit
Auditor’s Responsibility
preparation of financial statements in accordance
Our responsibility is to express an opinion on the
with generally accepted accounting principles, and
Company’s internal financial controls over financial
that receipts and expenditures of the company are
reporting based on our audit. We conducted our audit
being made only in accordance with authorisations of
in accordance with the Guidance Note on Audit of
management and directors of the company; and (3)
Internal Financial Controls Over Financial Reporting
provide reasonable assurance regarding prevention or
(the “Guidance Note”) and the Standards on Auditing as
timely detection of unauthorised acquisition, use, or
specified under section 143(10) of the Companies Act,
disposition of the company’s assets that could have a
2013, to the extent applicable to an audit of internal
material effect on the financial statements.
financial controls and, both issued by the Institute
of Chartered Accountants of India. Those Standards Inherent Limitations of Internal Financial Controls
and the Guidance Note require that we comply with Over Financial Reporting
ethical requirements and plan and perform the audit to Because of the inherent limitations of internal
obtain reasonable assurance about whether adequate financial controls over financial reporting, including
internal financial controls over financial reporting the possibility of collusion or improper management
was established and maintained and if such controls override of controls, material misstatements due to
operated effectively in all material respects. error or fraud may occur and not be detected. Also,
Our audit involves performing procedures to obtain projections of any evaluation of the internal financial
audit evidence about the adequacy of the internal controls over financial reporting to future periods are

subject to the risk that the internal financial control of Internal Financial Controls Over Financial Reporting
over financial reporting may become inadequate issued by the Institute of Chartered Accountants of
because of changes in conditions, or that the degree India.
of compliance with the policies or procedures may
deteriorate.
Opinion For S R B C & CO LLP

In our opinion, the Company has, in all material Chartered Accountants
respects, an adequate internal financial controls system
ICAI Firm Registration Number: 324982E/E300003
over financial reporting and such internal financial
controls over financial reporting were operating
effectively as at March 31, 2017, based on the internal
per Vikram Mehta
control over financial reporting criteria established by
the Company considering the essential components of Place : Mumbai Partner
internal control stated in the Guidance Note on Audit Date: May 18, 2017 Membership No: 105938

Balance Sheet as at 31st March, 2017
(` in Lacs)
Notes As at As at As at
March 31, 2017 March 31,2016 April 1, 2015
Assets
Non-Current Assets
Property, plant and equipment 3a 28,228.43 24,942.41 25,824.59
Capital work in progress 802.80 552.18 653.63
Goodwill 3b 10,287.69 10,287.69 10,287.69
Other intangible assets 3b 15,648.71 18,530.38 21,600.90
Intangible asset under development - 240.00 -
Investment in subsidiaries 4 665.40 665.22 660.02
Financial assets
Investments 4 13,347.59 13,088.59 12,688.59
Trade receivables 5 569.27 - -
Loans 6 698.09 576.21 552.70
Other financial assets 7 605.48 332.43 594.39
Income tax assets ( net ) 8 14,193.60 12,106.92 8,267.39
Other assets 9 10,750.67 10,152.49 7,873.79
95,797.73 91,474.52 89,003.69
Current assets
Inventories 10 19,521.05 18,371.37 18,609.02
Financial assets
Investments 11 1,408.09 6,754.79 16,700.33
Trade receivables 5 11,194.56 8,873.62 5,286.78
Cash and cash equivalent 12a 3,412.73 1,582.36 2,300.31
Other bank balances 12b 6,133.39 3,905.36 4,769.65
Other assets 9 3,101.53 2,156.25 2,777.23
45,030.22 41,884.17 50,663.55
Total Assets 1,40,827.95 1,33,358.69 1,39,667.24
Equity and liabilities
Equity
Equity share capital 13 1,816.84 1,811.20 1,810.23
Other equity * 63,547.80 45,402.37 53,816.87
Total equity 65,364.64 47,213.57 55,627.10
Non-current liabilities
Financial liabilities
Borrowings 15 - - 40,000.00
Other financial liabilities 17 - - 6,209.54
Provisions 18 2,140.42 1,643.48 1,286.66
Deferred tax liabilities (net) 19 4,818.76 9,273.68 4,877.02
6,959.18 10,917.16 52,373.22
Current liabilities
Borrowings 15 4,919.04 - -
Trade payables 16 14,480.69 15,662.05 12,918.45
Other financial liabilities 17 41,272.30 51,771.13 12,495.64
Other liabilities 20 4,431.94 4,329.84 2,984.07
Provisions 18 3,101.15 2,930.46 2,893.88
Tax liabilities (net) 21 299.01 534.48 374.88
68,504.13 75,227.96 31,666.92
Total liabilities 75,463.31 86,145.12 84,040.14
Total equity and liabilities 1,40,827.95 1,33,358.69 1,39,667.24
* Refer statement of changes in equity.
Summary of significant accounting policies 2
The accompanying notes are an integral part of the financial statements.

As per our report of even date
For S R B C & CO LLP For and on behalf of the Board of Directors of
ICAI Firm Registration No. 324982E/E300003 M.P. Ramachandran K.Ullas Kamath
Chairman and Managing Director Joint Managing Director and
per Vikram Mehta DIN: 00553406 Chief Financial Officer
Partner DIN: 00506681
Membership No.: 105938 Shreyas Trivedi
Company Secretary
Place: Mumbai Place: Mumbai

Date: May 18, 2017 Date: May 18, 2017

Statement of Profit and Loss for the year ended 31st March, 2017
(` in Lacs)
Notes April 1, 2016 to April 1, 2015 to
March 31, 2017 March 31, 2016
Income
Revenue from operations 22 1,69,815.90 1,60,890.28
Other income 23 424.22 1,174.44
Finance income 24 715.86 433.49
Total income (I) 1,70,955.98 1,62,498.21
Expenses
Cost of raw material and components consumed 25 51,679.07 48,918.92
Purchase of traded goods 37,592.57 33,835.50
(Increase)/ decrease in inventories of finished goods, work-in- progress
and traded goods 26 (608.22) 66.41
Excise duty expense 6,619.41 6,675.99
Employee benefits expense 27 14,967.09 14,184.56
Employee stock option expenses 27 236.30 1,627.83
Depreciation and amortisation expense 28 5,474.06 5,420.87
Finance costs 29 5,088.91 5,645.94
Other expenses 30 33,314.50 32,780.56
Share of (profit)/loss in partnership firm (3.68) 7.30
Total expense (II) 1,54,360.01 1,49,163.88
Profit before tax (I-II) 16,595.97 13,334.33
Income tax 31
Current tax (MAT) 3,430.29 4,312.00
Less: MAT credit entitlement (3,430.29) (2,860.00)
Adjustment of tax relating to earlier periods 785.27 -
Deferred tax expense / (Income) (4,393.80) 4,430.29
Total Income tax (3,608.53) 5,882.29
Profit for the year attributable to equity shareholders (A) 20,204.50 7,452.04
Other comprehensive Income not to be reclassified to profit or loss in
subsequent periods
Re-measurement gains/ (losses) on defined benefit plans (176.57) (93.33)
Income tax effect 31 61.12 33.64
(115.45) (59.69)
Other comprehensive income for the year net of tax , attributable to (115.45) (59.69)
equity shareholders (B)
Total comprehensive income for the year net of tax, attributable to 20,089.05 7,392.35
equity shareholders (A+B)
EARNINGS PER SHARE (EPS) 40
Basic (`) 11.12 4.12
Diluted (`) 11.12 4.06
Nominal value per share (`) 1.00 1.00

Company Secretary

Date: May 18, 2017 Date: May 18, 2017

Statement of Changes in Equity for the year ended 31st March, 2017
A. Equity share capital (` in Lacs)
As at As at As at
March 31, 2017 March 31,2016 April 1,2015
Equity shares of ` 1 each issued, subscribed and fully
paid
At the beginning of the period 1,811.20 1,810.23 1,810.23
Issue of share capital 5.64 0.97 -
At the end of the period 1,816.84 1,811.20 1,810.23
For further details, Refer Note 13
B. Other Equity
Retained Capital Securities Debenture General Employee Total
earnings reserves premium redemption reserves stock option
reserve (DRR) outstanding
*
As at April 1, 2015 (4,060.00) 5,505.27 47,777.56 11,995.02 32,581.44 2,691.43 96,490.72
Adjustments pursuant to (43,687.27) 1,009.19 - - 4.23 - (42,673.85)
Scheme of amalgamation of
Jyothy Consumer Products
Marketing Limited ( Note 43 )
Profit for the year 7,452.04 - - - - - 7,452.04
Other comprehensive income (59.69) - - - - - (59.69)
Total comprehensive income 7,392.35 - - - - - 7,392.35
Cash dividends (Note 14) (14,485.73) - - - - - (14,485.73)
Dividend distribution tax on (2,948.95) - - - - - (2,948.95)
cash dividend (Note 14 )
Transfer to DRR (4,560.01) - - 4,560.01 - - -
Exercise of share options - - 180.54 - - (180.54) -
(Note 38)
Transfer from DRR - - - (2,875.00) 2,875.00 - -
Compensation on stock - - - - - 1,627.83 1,627.83
option granted /cancelled
( Note 38)
As at March 31, 2016 (62,349.61) 6,514.46 47,958.10 13,680.03 35,460.67 4,138.72 45,402.37
Profit for the year 20,204.50 - - - - - 20,204.50
Other comprehensive (115.45) - - - - - (115.45)
income
Total comprehensive income 20,089.05 - - - - - 20,089.05
Cash dividend (Note 14) (1,811.20) - - - - - (1,811.20)
Dividend distribution tax on (368.72) - - - - - (368.72)
cash dividend (Note 14)

Statement of Changes in Equity (contd.) for the year ended 31st March, 2017
B. Other Equity (contd.) (` in Lacs)

Retained Capital Securities Debenture General Employee Total
earnings reserves premium redemption reserves stock option
reserve (DRR) outstanding
*
Transfer from DRR 13,680.03 - - (13,680.03) - - -
Transfer to DRR (6,250.00) - - 6,250.00 - - -
Exercise of share options - - 981.32 - - (981.32) -
(Note 38)
Compensation on stock - - - - - 236.30 236.30
option granted /cancelled
( Note 38)
As at March 31, 2017 (37,010.45) 6,514.46 48,939.42 6,250.00 35,460.67 3,393.70 63,547.80
* The Company has issued redeemable non-convertible debentures. Accordingly, the Companies (Share capital
and Debentures) Rules, 2014 (as amended), require the Company to create DRR out of profits of the company
available for payment of dividend. DRR is required to be created for an amount which is equal to 25% of the value
of debentures outstanding over the life of debentures.

Company Secretary

Date: May 18, 2017 Date: May 18, 2017

Statement of Cash Flows for the year ended 31st March, 2017
(` in Lacs)
April 1, 2016 to April 1, 2015 to
March 31, 2017 March 31, 2016
A. CASH FLOWS PROVIDED BY/(USED IN) OPERATING ACTIVITIES:
Profit before tax 16,595.97 13,334.33
Adjustments to reconcile profit before tax to net cash flows :
Depreciation and amortisation expense 5,474.06 5,420.87
Loss on fixed assets discarded 60.29 92.98
Loss / (profit) on sale of fixed assets 10.82 (49.74)
Gain on financial assets fair valued through profit or loss (267.09) (530.52)
Profit on sale of current investments (78.94) (579.01)
Finance costs 5,088.91 5,645.94
Finance income (715.86) (433.49)
Share of (profit) / loss from investment in partnership firm (3.68) 7.30
Foreign exchange fluctuation gain (net) (6.42) -
Provision for doubtful advances 55.00 70.00
Provision for doubtful debts - 10.39
Employee stock option expenses 236.30 1,627.83
Operating profit before working capital changes 26,449.36 24,616.88
Movements in working capital :
Decrease / (increase) in loans (121.88) (23.51)
Decrease / (increase) in trade receivables (2,893.63) (3,597.23)
Decrease / (increase) in other financials assets 107.05 103.30
Decrease / (increase) in inventories (1,149.68) 237.65
Decrease / (increase) in other assets (2,095.23) (1,049.87)
Increase/ (decrease) in trade payables (1,171.52) 2,743.60
Increase/ (decrease) in other financial liabilities (57.04) 53.71
Increase/ (decrease) in other liabilities 102.10 1,269.94
Increase / (decrease) in provisions 491.09 300.07
Cash generated from operations 19,660.62 24,654.54
Taxes paid (net) (3,107.42) (5,131.93)
Net cash generated from operating activities ( A ) 16,553.20 19,522.61
B. CASH FLOWS PROVIDED BY/(USED IN) INVESTING ACTIVITIES:
Purchase of fixed assets including capital work-in-progress and capital (5,630.54) (2,511.43)
advances
Proceeds from sale of fixed assets 91.34 168.49
Proceeds from sale of Mutual funds 27,433.72 45,563.31
Investment in Mutual funds (22,000.00) (34,908.25)
(Investment in)/ Proceeds from fixed deposit (2,626.58) 1,000.76
Refund /(Investment) in partnership firm 3.50 (12.50)
Interest income received 715.86 435.50
Net cash used in investing activities ( B ) (2,012.70) 9,735.88

Statement of Cash Flows for the year ended 31st March, 2017 (contd.)
(` in Lacs)
March 31, 2017 March 31, 2016
C. CASH FLOWS PROVIDED BY/(USED IN) FINANCING ACTIVITIES:
Interest and finance charges paid (15,454.89) (862.72)
Proceeds from allotment of equity shares under ESOP scheme 5.64 0.96
Repayment of Debentures (40,000.00) (11,500.00)
Repayment of deferred payment liability - (180.00)
Proceeds from issue of debentures 40,000.00 -
Proceeds from short-term borrowings 4,919.04 -
Dividend paid (1,811.20) (14,485.73)
Dividend tax paid (368.72) (2,948.95)
Net cash used in financing activities ( C ) (12,710.13) (29,976.44)
Net increase / (decrease) in cash and cash equivalents (A+B+C) 1,830.37 (717.95)
Cash and cash equivalents at the beginning of the year 1,582.36 2,300.31
Cash and cash equivalents at the end of the year 3,412.73 1,582.36
Components of cash and cash equivalents
Cash in hand 10.97 13.83
Balance with scheduled banks - current account 3,295.27 1,429.25
Unclaimed dividend accounts * 106.49 139.28
Cash and cash equivalents considered for cash flows statement 3,412.73 1,582.36
*Not available for use by the management for any other purpose
Summary of significant accounting policies Note 2

Company Secretary

Date: May 18, 2017 Date: May 18, 2017

Notes to the financial statements for the year ended March 31, 2017
NOTE 1. Corporate information
Jyothy Laboratories Limited (‘the Company’) is a public company domiciled in India. Its shares are listed on two
stock exchanges in India. The registered office of the company is located at Ujala House , Ramakrishna Mandir
Road, Kondivita, Andheri (East) Mumbai. The Company is principally engaged in manufacturing and marketing of
fabric care, dishwashing , personal care and household insecticides products.
These Financial statements were authorised for issue in accordance with a resolution passed by the Board of
Directors on May 18, 2017.
NOTE 2. Significant accounting policies

2.1 Basis of preparation
The financial statements of the Company have been prepared in accordance with Indian Accounting
Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 as amended. For
all periods up to and including the year ended March 31, 2016, the Company prepared its financial statements
in accordance with accounting standards notified under the section 133 of the Companies Act 2013, read
together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP). These financial statements
for the year ended March 31, 2017 are the first, the Company has prepared in accordance with Ind AS. Refer
to Note 50 for information on how the Company adopted Ind AS.
The financial statements have been prepared on a historical cost basis, except for certain financial assets
which have been measured at fair value. (Refer accounting policy regarding financial instruments)
The financial statements are presented in INR and all values are rounded to the nearest lacs, except when
otherwise indicated.
2.2 Summary of significant accounting policies
a. Current versus non-current classification
The Company presents assets and liabilities in the balance sheet based on current/non-current
classification. An asset is treated as current when it is:
∞ Expected to be realised or intended to be sold or consumed in normal operating cycle
∞ Held primarily for the purpose of trading
∞ Expected to be realised within twelve months after the reporting period, or
∞ Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least
twelve months after the reporting period
All other assets are classified as non-current.
A liability is current when:
∞ It is expected to be settled in normal operating cycle
∞ It is held primarily for the purpose of trading
∞ It is due to be settled within twelve months after the reporting period, or
∞ There is no unconditional right to defer the settlement of the liability for at least twelve months after
the reporting period
The Company classifies all other liabilities as non-current.
Deferred tax assets and liabilities are classified as non-current assets and liabilities.
The operating cycle is the time between the acquisition of assets for processing and their realisation in
cash and cash equivalents. The Company has identified twelve months as its operating cycle.
b. Foreign currencies
The Company’s financial statements are presented in INR, which is also the company’s functional
currency.
Transactions and balances
Transactions in foreign currencies are initially recorded by the Company at their functional currency
spot rates at the date the transaction first qualifies for recognition. However, for practical reasons, the
Company uses an average rate if the average approximates the actual rate at the date of the transaction.

Notes to the financial statements (contd.)

Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency
spot rates of exchange at the reporting date.
Exchange differences arising on settlement or translation of monetary items are recognised in profit or
loss.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated
using the exchange rates at the dates of the initial transactions.
c. Fair value measurement
The Company measures financial instruments, (Refer Note 2p) at fair value at each balance sheet date.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date. The fair value measurement is based
on the presumption that the transaction to sell the asset or transfer the liability takes place either:
∞ In the principal market for the asset or liability, or
∞ In the absence of a principal market, in the most advantageous market for the asset or liability
The principal or the most advantageous market must be accessible by the Company.
The fair value of an asset or a liability is measured using the assumptions that market participants would
use when pricing the asset or liability, assuming that market participants act in their economic best
interest.
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient
data are available to measure fair value, maximising the use of relevant observable inputs and minimising
the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are
categorised within the fair value hierarchy, described as follows, based on the lowest level input that is
significant to the fair value measurement as a whole:
∞ Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities
∞ Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value
measurement is directly or indirectly observable
measurement is unobservable
For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company
determines whether transfers have occurred between levels in the hierachy by re-assessing categorisation
(based on the lowest level input that is significant to the fair value measurement as a whole) at the end of
each reporting period.
For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities
on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value
hierarchy as explained above.
d. Revenue recognition
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company
and the revenue can be reliably measured, regardless of when the payment is being made. Revenue is
measured at the fair value of the consideration received or receivable, taking into account contractually
defined terms of payment and excluding taxes or duties collected on behalf of the government. The
Company has concluded that it is the principal in all of its revenue arrangements since it is the primary
obligor in all the revenue arrangements as it has pricing latitude and is also exposed to inventory and
credit risks.
Based on the Educational Material on Ind AS 18 issued by the ICAI, the Company has assumed that
recovery of excise duty flows to the Company on its own account. This is for the reason that it is a liability
of the manufacturer which forms part of the cost of production, irrespective of whether the goods are
sold or not. Since the recovery of excise duty flows to the Company on its own account, revenue includes
excise duty.

However, sales tax/ value added tax (VAT) is not received by the Company on its own account. Rather, it
is tax collected on value added to the commodity by the seller on behalf of the government. Accordingly,
it is excluded from revenue.
The specific recognition criteria described below must also be met before revenue is recognised.
Sale of goods
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of
the goods have passed to the buyer, usually on delivery of the goods. Revenue from the sale of goods
is measured at the fair value of the consideration received or receivable, net of returns and allowances,
trade discounts and volume rebates.
Interest income
For all debt instruments measured at amortised cost, interest income is recorded using the effective
interest rate (EIR). EIR is the rate that exactly discounts the estimated future cash payments or receipts
over the expected life of the financial instrument or a shorter period, where appropriate, to the gross
carrying amount of the financial asset or to the amortised cost of a financial liability.
When calculating the effective interest rate, the Company estimates the expected cash flows by
considering all the contractual terms of the financial instrument (for example, prepayment, extension,
call and similar options) but does not consider the expected credit losses. Interest income is included in
finance income in the statement of profit and loss.
e. Government grants
Government grants are recognised where there is reasonable assurance that the grant will be received
and all attached conditions will be complied with. When the grant relates to an expense item, it is
recognised as income on a systematic basis over the periods that the related costs, for which it is intended
to compensate, are expensed. When the grant relates to an asset, it is recognised as income in equal
amounts over the expected useful life of the related asset.
When the Company receives grants of non-monetary assets, the asset and the grant are recorded at fair
value amounts and released to profit or loss over the expected useful life in a pattern of consumption of
the benefit of the underlying asset i.e. by equal annual instalments.
f. Taxes
Current income tax
Current income tax assets and liabilities are measured at the amount expected to be recovered from or
paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are
enacted or substantively enacted, at the reporting date in the country where the Company operates and
generates taxable income.
Current income tax relating to items recognised outside profit or loss is recognised outside profit or
loss (either in other comprehensive income or in equity). Current tax items are recognised in correlation
to the underlying transaction either in OCI or directly in equity. Management periodically evaluates
positions taken in the tax returns with respect to situations in which applicable tax regulations are subject
to interpretation and establishes provisions where appropriate.
Deferred tax
Deferred tax is provided using the liability method on temporary differences between the tax bases
of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting
date.
Deferred tax liabilities are recognised for all taxable temporary differences, except:
∞ When the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a
transaction that is not a business combination and, at the time of the transaction, affects neither the
accounting profit nor taxable profit or loss
∞ In respect of taxable temporary differences associated with investments in subsidiaries, when the
timing of the reversal of the temporary differences can be controlled and it is probable that the
temporary differences will not reverse in the foreseeable future


Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused
tax credits and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable
that taxable profit will be available against which the deductible temporary differences, and the carry
forward of unused tax credits and unused tax losses can be utilised, except:
∞ When the deferred tax asset relating to the deductible temporary difference arises from the initial
recognition of an asset or liability in a transaction that is not a business combination and, at the time
of the transaction, affects neither the accounting profit nor taxable profit or loss
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent
that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred
tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are
recognised to the extent that it has become probable that future taxable profits will allow the deferred tax
asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when
the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or
substantively enacted at the reporting date.
Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss (either
in other comprehensive income or in equity). Deferred tax items are recognised in correlation to the
underlying transaction either in OCI or directly in equity.
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off
current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and
the same taxation authority.
Sales / value added taxes paid on acquisition of assets or on incurring expenses
Expenses and assets are recognised net of the amount of sales/ value added taxes paid, except:
∞ When the tax incurred on a purchase of assets or services is not recoverable from the taxation
authority, in which case, the tax paid is recognised as part of the cost of acquisition of the asset or as
part of the expense item, as applicable
∞ When receivables and payables are stated with the amount of tax included
The net amount of tax recoverable from, or payable to, the taxation authority is included as part of
receivables or payables in the balance sheet.
g. Property, plant and equipment
Property, plant and equipment is stated at cost, net of accumulated depreciation and accumulated
impairment losses, if any. When significant part of plant and equipment are required to be replaced at
intervals, the Company depreciate them separately based on their specific useful lives. All other repair and
maintanance cost are recognised in profit or loss as incurred.
Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets as follows:
Category Estimated useful life (in years)

Factory Buildings 10-30
Building (Other than Factory Building) 30-60
Building (Fences and temporary structure) 3-6
Plant and machinery 13-15
Furniture and fixtures 5-10
Dies and moulds 3
Computers 3-6
Office equipment's 5
Vehicles 6-8

An item of property, plant and equipment and any significant part initially recognised is derecognised
upon disposal or when no future economic benefits are expected from its use or disposal. Any gain
or loss arising on derecognition of the asset (calculated as the difference between the net disposal
proceeds and the carrying amount of the asset) is included in the income statement when the asset is
derecognised.
The residual values, useful lives and methods of depreciation of property, plant and equipment are
reviewed at each financial year end and adjusted prospectively, if appropriate.
h. Intangible assets
Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible
assets acquired in a business combination is their fair value at the date of acquisition. Following initial
recognition, intangible assets are carried at cost less any accumulated amortisation and accumulated
impairment losses. Internally generated intangibles, excluding capitalised development costs, are not
capitalised and the related expenditure is reflected in profit or loss in the period in which the expenditure
is incurred.
The useful lives of intangible assets are assessed finite as per table below -
Trademarks and Copyrights 9-10
Brands 10
Software's and Licences 10
Intangible assets with finite lives are amortised over the useful economic life and assessed for impairment
whenever there is an indication that the intangible asset may be impaired. The amortisation period and
the amortisation method for an intangible asset with a finite useful life are reviewed at least at the end
of each reporting period. Changes in the expected useful life or the expected pattern of consumption
of future economic benefits embodied in the asset are considered to modify the amortisation period or
method, as appropriate, and are treated as changes in accounting estimates.
Gains or losses arising from derecognition of an intangible asset are measured as the difference between
the net disposal proceeds and the carrying amount of the asset and are recognised in the statement of
profit or loss when the asset is derecognised.
i. Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of an asset that
necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised as
part of the cost of the asset. All other borrowing costs are expensed in the period in which they occur.
Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing
of funds.
j. Leases
The determination of whether an arrangement is (or contains) a lease is based on the substance of the
arrangement at the inception of the lease. The arrangement is, or contains, a lease if fulfilment of the
arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right
to use the asset or assets, even if that right is not explicitly specified in an arrangement.
For arrangements entered into prior to 1 April 2015, the Company has determined whether the arrangement
contain lease on the basis of facts and circumstances existing on the date of transition.
Company as a lessee
A lease is classified at the inception date as a finance lease or an operating lease. A lease that transfers
substantially all the risks and rewards incidental to ownership to the Company is classified as a finance
lease. An operating lease is a lease other than finance lease.


Operating lease payments are recognised as an expense in the statement of profit and loss on a straight-
line basis over the lease term.
k. Inventories
Inventories are valued at the lower of cost and net realisable value.
Costs incurred in bringing each product to its present location and condition are accounted for as
follows:
∞ Raw materials: cost includes cost of purchase and other costs incurred in bringing the inventories to
their present location and condition. Cost is determined on first in, first out basis.
∞ Finished goods and work in progress: cost includes cost of direct materials and labour and a proportion
of manufacturing overheads based on the normal operating capacity, but excluding borrowing costs.
Cost is determined on first in, first out basis.
∞ Traded goods: cost includes cost of purchase and other costs incurred in bringing the inventories to
their present location and condition. Cost is determined on first in, first out basis.
Net realisable value is the estimated selling price in the ordinary course of business, less estimated
costs of completion and the estimated costs necessary to make the sale.
l. Impairment of non-financial assets
The Company assesses, at each reporting date, whether there is an indication that an asset may be
impaired. If any indication exists, or when annual impairment testing for an asset is required, the Company
estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or
cash-generating unit’s (CGU) fair value less costs of disposal and its value in use. Recoverable amount
is determined for an individual asset, unless the asset does not generate cash inflows that are largely
independent of those from other assets or Company’s assets. When the carrying amount of an asset
or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its
recoverable amount.
In assessing value in use, the estimated future cash flows are discounted to their present value using a
pre-tax discount rate that reflects current market assessments of the time value of money and the risks
specific to the asset. In determining fair value less costs of disposal, recent market transactions are taken
into account. If no such transactions can be identified, an appropriate valuation model is used. These
calculations are corroborated by valuation multiples, quoted share prices for publicly traded companies
or other available fair value indicators.
The Company bases its impairment calculation on detailed budgets and forecast calculations, which are
prepared separately for each of the Company’s CGUs to which the individual assets are allocated. These
budgets and forecast calculations generally cover a period of five years. For longer periods, a long-term
growth rate is calculated and applied to project future cash flows after the fifth year. To estimate cash flow
projections beyond periods covered by the most recent budgets/forecasts, the Company extrapolates
cash flow projections in the budget using a steady or declining growth rate for subsequent years, unless
an increasing rate can be justified. In any case, this growth rate does not exceed the long-term average
growth rate for the products, industries, or country or countries in which the entity operates, or for the
market in which the asset is used.
Impairment losses including impairment on inventories, are recognised in the statement of profit and loss.
For assets excluding goodwill, an assessment is made at each reporting date to determine whether
there is an indication that previously recognised impairment losses no longer exist or have decreased.
If such indication exists, the Company estimates the asset’s or CGU’s recoverable amount. A previously
recognised impairment loss is reversed only if there has been a change in the assumptions used to
determine the asset’s recoverable amount since the last impairment loss was recognised. The reversal is
limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the
carrying amount that would have been determined, net of depreciation, had no impairment loss been
recognised for the asset in prior years. Such reversal is recognised in the statement of profit or loss unless

the asset is carried at a revalued amount, in which case, the reversal is treated as a revaluation increase.
Goodwill is tested for impairment annually on reporting date and when circumstances indicate that the
carrying value may be impaired.
Impairment is determined for goodwill by assessing the recoverable amount of each CGU (or Company
of CGUs) to which the goodwill relates. When the recoverable amount of the CGU is less than its carrying
amount, an impairment loss is recognised.
Impairment losses relating to goodwill cannot be reversed in future periods.
m. Provisions
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result
of a past event, it is probable that an outflow of resources embodying economic benefits will be required
to settle the obligation and a reliable estimate can be made of the amount of the obligation. When the
Company expects some or all of a provision to be reimbursed, for example, under an insurance contract,
the reimbursement is recognised as a separate asset, but only when the reimbursement is virtually
certain. The expense relating to a provision is presented in the statement of profit and loss net of any
reimbursement.
If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate
that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in
the provision due to the passage of time is recognised as a finance cost.
n. Retirement and other employee benefits
Retirement benefit in the form of provident fund is a defined contribution scheme. The Company has
no obligation, other than the contribution payable to the provident fund. The Company recognises
contribution payable to the provident fund scheme as an expense, when an employee renders the related
service. If the contribution payable to the scheme for service received before the balance sheet date
exceeds the contribution already paid, the deficit payable to the scheme is recognised as a liability after
deducting the contribution already paid. If the contribution already paid exceeds the contribution due for
services received before the balance sheet date, then excess is recognised as an asset to the extent that
the pre-payment will lead to, for example, a reduction in future payment or a cash refund.
The Company operates a defined benefit gratuity plan in India, which requires contributions to be
made to a separately administered fund. The cost of providing benefits under the defined benefit plan is
determined using the projected unit credit method.
Remeasurements, comprising of actuarial gains and losses, are recognised immediately in the balance
sheet with a corresponding debit or credit to retained earnings through OCI in the period in which they
occur. Remeasurements are not reclassified to profit or loss in subsequent periods.
Net interest is calculated by applying the discount rate to the net defined benefit liability or asset. The
Company recognises the following changes in the net defined benefit obligation as an expense in the
statement of profit and loss:
∞ Service costs comprising current service costs, past-service costs, gains and losses on curtailments
and non-routine settlements; and
∞ Net interest expense or income
o. Share-based payments
Employees (including senior executives) of the Company receive remuneration in the form of share-
based payments, whereby employees render services as consideration for equity instruments (equity-
settled transactions).
Equity-settled transactions
The cost of equity-settled transactions is determined by the fair value at the date when the grant is made
using an appropriate valuation model.


That cost is recognised, together with a corresponding increase in employee stock option outstanding
in equity, over the period in which the performance and/or service conditions are fulfilled in employee
benefits expense. The cumulative expense recognised for equity-settled transactions at each reporting
date until the vesting date reflects the extent to which the vesting period has expired and the Company’s
best estimate of the number of equity instruments that will ultimately vest. The statement of profit and
loss expense or credit for a period represents the movement in cumulative expense recognised as at the
beginning and end of that period and is recognised in employee benefits expense.
Service and non-market performance conditions are not taken into account when determining the
grant date fair value of awards, but the likelihood of the conditions being met is assessed as part of
the Company’s best estimate of the number of equity instruments that will ultimately vest. Market
performance conditions are reflected within the grant date fair value. Any other conditions attached to an
award, but without an associated service requirement, are considered to be non-vesting conditions.
Non-vesting conditions are reflected in the fair value of an award and lead to an immediate expensing of
an award unless there are also service and/or performance conditions.
No expense is recognised for awards that do not ultimately vest because non-market performance and/
or service conditions have not been met. Where awards include a market or non-vesting condition, the
transactions are treated as vested irrespective of whether the market or non-vesting condition is satisfied,
provided that all other performance and/or service conditions are satisfied.
The dilutive effect of outstanding options is reflected as additional share dilution in the computation of
diluted earnings per share.
p . Financial instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability
or equity instrument of another entity.
Financial assets
Initial recognition and measurement
All financial assets are recognised initially at fair value plus, in the case of financial assets not recorded at
fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial
asset. Purchases or sales of financial assets that require delivery of assets within a time frame established
by regulation or convention in the market place (regular way trades) are recognised on the trade date, i.e.,
the date that the Company commits to purchase or sell the asset.
Subsequent measurement
For purposes of subsequent measurement, financial assets are classified in four categories -
1 Debt instruments at amortised cost
2 Debt instruments at fair value through other comprehensive income (FVTOCI)
3 Debt instruments, derivatives and equity instruments at fair value through profit or loss (FVTPL)
4 Equity instruments measured at fair value through other comprehensive income (FVTOCI)
The Company does not have any financial assets falling under categary 2 and 4 above.
Debt instruments at amortised cost
A ‘debt instrument’ is measured at the amortised cost if both the following conditions are met:
a) The asset is held within a business model whose objective is to hold assets for collecting contractual
cash flows, and
b) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of
principal and interest (SPPI) on the principal amount outstanding.

This category is the most relevant to the Company. After initial measurement, such financial assets are
subsequently measured at amortised cost using the effective interest rate (EIR) method. Amortised cost
is calculated by taking into account any discount or premium on acquisition and fees or costs that are an
integral part of the EIR. The EIR amortisation is included in finance income in the profit or loss. The losses
arising from impairment are recognised in the profit or loss. This category generally applies to trade and
other receivables.
Debt instrument at FVTPL
FVTPL is a residual category for debt instruments. Any debt instrument, which does not meet the criteria
for categorization as at amortised cost or as FVTOCI, is classified as at FVTPL. In addition, the Company
may elect to designate a debt instrument, which otherwise meets amortised cost or FVTOCI criteria, as
at FVTPL. However, such election is allowed only if doing so reduces or eliminates a measurement or
recognition inconsistency (referred to as ‘accounting mismatch’). The Company has not designated any
debt instrument as at FVTPL. Debt instruments included within the FVTPL category are measured at fair
value with all changes recognised in the P&L.
Equity investments
All equity investments in scope of Ind AS 109 are measured at fair value. Equity instruments which are held
for trading classified as at FVTPL and are measured at fair value with all changes recognised in the profit or
loss. For all other equity instruments, the Company may make an irrevocable election to present in other
comprehensive income subsequent changes in the fair value. The Company makes such election on an
instrument- by-instrument basis. The classification is made on initial recognition and is irrevocable.
If the Company decides to classify an equity instrument as FVTOCI, then all fair value changes on the
instrument, excluding dividends, are recognised in the OCI. There is no recycling of the amounts from
OCI to P&L, even on sale of investment. However, the Company may transfer the cumulative gain or loss
within equity.
Derecognition
A financial asset (or, where applicable, a part of a financial asset or part of a Company of similar financial
assets) is primarily derecognised (i.e. removed from the Company’s balance sheet) when:
∞ The rights to receive cash flows from the asset have expired, or
∞ The Company has transferred its rights to receive cash flows from the asset or has assumed an
obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-
through’ arrangement; and either
(a) The Company has transferred substantially all the risks and rewards of the asset, or
(b) The Company has neither transferred nor retained substantially all the risks and rewards of the
asset, but has transferred control of the asset.
When the Company has transferred its rights to receive cash flows from an asset or has entered into
a pass-through arrangement, it evaluates if and to what extent it has retained the risks and rewards of
ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the
asset, nor transferred control of the asset, the Company continues to recognise the transferred asset
to the extent of the Company’s continuing involvement. In that case, the Company also recognises an
associated liability. The transferred asset and the associated liability are measured on a basis that reflects
the rights and obligations that the Company has retained.
Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the
lower of the original carrying amount of the asset and the maximum amount of consideration that the
Company could be required to repay.
Impairment of financial assets
In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for measurement
and recognition of impairment loss.


ECL is the difference between all contractual cash flows that are due to the Company in accordance with
the contract and all the cash flows that the entity expects to receive (i.e., all cash shortfalls), discounted at
the original EIR. ECL impairment loss allowance (or reversal) recognised during the period is recognised
as income/ expense in the statement of profit and loss.
For assessing increase in credit risk and impairment loss, the Company combines financial instruments on
the basis of shared credit risk characteristics with the objective of facilitating an analysis that is designed
to enable significant increases in credit risk to be identified on a timely basis.
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or
loss, loans and borrowings, payables, or as derivatives designated as hedging instruments in an effective
hedge, as appropriate.
All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and
payables, net of directly attributable transaction costs.
The Company’s financial liabilities include trade and other payables, loans and borrowings including bank
overdrafts and financial guarantee contracts.
The measurement of financial liabilities depends on their classification, as described below:
Loans and borrowings
This is the category most relevant to the Company. After initial recognition, interest-bearing loans and
borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are
recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation
process.
Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or
costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the statement
of profit and loss.
This category generally applies to borrowings.
Financial guarantee contracts
Financial guarantee contracts issued by the Company are those contracts that require a payment to be
made to reimburse the holder for a loss it incurs because the specified debtor fails to make a payment
when due in accordance with the terms of a debt instrument. Financial guarantee contracts are recognised
initially as a liability at fair value, adjusted for transaction costs that are directly attributable to the issuance
of the guarantee. Subsequently, the liability is measured at the higher of the amount of loss allowance
determined as per impairment requirements of Ind AS 109 and the amount recognised less cumulative
amortisation.
The Company does not have any financial liabilities at fair value through profit or loss.
Derecognition
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or
expires. When an existing financial liability is replaced by another from the same lender on substantially
different terms, or the terms of an existing liability are substantially modified, such an exchange or
modification is treated as the derecognition of the original liability and the recognition of a new liability.
The difference in the respective carrying amounts is recognised in the statement of profit or loss.
Embedded derivatives
An embedded derivative is a component of a hybrid (combined) instrument that also includes a non-
derivative host contract – with the effect that some of the cash flows of the combined instrument vary
in a way similar to a stand-alone derivative. An embedded derivative causes some or all of the cash flows

that otherwise would be required by the contract to be modified according to a specified interest rate,
financial instrument price, or other variable, provided in the case of a non-financial variable that the
variable is not specific to a party to the contract. Reassessment only occurs if there is either a change in
the terms of the contract that significantly modifies the cash flows that would otherwise be required or a
reclassification of a financial asset out of the fair value through profit or loss.
If the hybrid contract contains a host that is a financial asset within the scope of Ind AS 109, the Company
does not separate embedded derivatives. Rather, it applies the classification requirements contained in
Ind AS 109 to the entire hybrid contract.
Derivatives embedded in all other host contracts are accounted for as separate derivatives and recorded
at fair value if their economic characteristics and risks are not closely related to those of the host contracts
and the host contracts are not held for trading or designated at fair value though profit or loss. These
embedded derivatives are measured at fair value with changes in fair value recognised in profit or loss,
unless designated as effective hedging instruments.
Reclassification of financial assets
The Company determines classification of financial assets and liabilities on initial recognition. After initial
recognition, no reclassification is made for financial assets which are equity instruments and financial
liabilities. For financial assets which are debt instruments, a reclassification is made only if there is a
change in the business model for managing those assets. Changes to the business model are expected to
be infrequent. The Company’s senior management determines change in the business model as a result
of external or internal changes which are significant to the Company’s operations. Such changes are
evident to external parties.
A change in the business model occurs when the Company either begins or ceases to perform an activity
that is significant to its operations. If the Company reclassifies financial assets, it applies the reclassification
prospectively from the reclassification date which is the first day of the immediately next reporting period
following the change in business model. The Company does not restate any previously recognised gains,
losses (including impairment gains or losses) or interest.
Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if
there is a currently enforceable legal right to offset the recognised amounts and there is an intention to
settle on a net basis, to realise the assets and settle the liabilities simultaneously.
q. Cash and cash equivalents
Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term
deposits with an original maturity of three months or less, which are subject to an insignificant risk of
changes in value.
r. Cash dividend to equity holders of the Company
The Company recognises a liability to make cash or non-cash distributions to equity holders of the parent
when the distribution is authorised and the distribution is no longer at the discretion of the Company.
As per the corporate laws in India, a distribution is authorised when it is approved by the shareholders. A
corresponding amount is recognised directly in equity.

Notes to the financial statements (contd.) (` in Lacs)
NOTE 3a. Property, plant and equipment

Freehold Lease-hold Building # @ Plant and Dies and Furniture Office Vehicle Total
land @ land machinery moulds and fixture equipments tangible
assets
Cost
As at April 1, 2015 5,648.67 237.24 10,331.42 7,805.31 167.99 307.24 238.84 407.19 25,143.90
Additions pursuant 33.23 - 500.54 132.50 5.86 3.31 1.51 3.74 680.69
to Scheme of
Amalgamation with
Jyothy Consumer
Products Marketing
Limited ( Note 43)
Additions - - 205.10 1,226.86 48.00 38.46 86.33 33.18 1,637.93
Disposals - - 40.35 259.03 4.60 4.87 1.21 13.49 323.55
As at March 31, 2016 5,681.90 237.24 10,996.71 8,905.64 217.25 344.14 325.47 430.62 27,138.97
Additions 939.79 - 1,197.33 2,628.87 571.18 72.18 182.54 115.69 5,707.58
Disposals 10.07 - 4.09 107.11 7.20 1.17 0.81 16.76 147.21
As at March 31, 2017 6,611.62 237.24 12,189.95 11,427.40 781.23 415.15 507.20 529.55 32,699.34
Depreciation and
impairment
As at April 1, 2015 - - - - - - - - -
Depreciation charge - 3.75 495.29 1,426.72 95.03 79.87 109.09 98.63 2,308.38
for the year
Disposals - - 0.09 101.29 2.44 3.37 0.74 3.89 111.82
As at March 31, 2016 - 3.75 495.20 1,325.43 92.59 76.50 108.35 94.74 2,196.56
Depreciation charge - 3.75 534.31 1,391.94 127.96 77.85 108.10 94.45 2,338.36
for the year
Disposals - - 0.28 47.81 6.49 1.13 0.71 7.59 64.01
As at March 31, 2017 - 7.50 1,029.23 2,669.56 214.06 153.22 215.74 181.60 4,470.91
Net book value
As at March 31, 2017 6,611.62 229.74 11,160.72 8,757.84 567.17 261.93 291.46 347.95 28,228.43
As at March 31, 2016 5,681.90 233.49 10,501.51 7,580.21 124.66 267.64 217.12 335.88 24,942.41
As at April 1, 2015 5,681.90 237.24 10,831.96 7,937.81 173.85 310.55 240.35 410.93 25,824.59
@ Freehold land and building includes asset which are not transferred in the name of the company amounting to
`2,734.68 (Gross block) (2016 - `5,245.17, 2015 - `5,245.17). These are held in the name of the entities which have
been merged with the company in earlier years.
# Includes `374.31 (2016 - `374.31 , 2015 - `374.31) represented by unquoted fully paid shares at cost in various
co-operative societies.
The Company has not capitalised any borrowing cost in the current and previous year.

NOTE 3b. Intangible assets

Goodwill Other intangible assets Total Other
intangible
Brands Trademarks and Software's and
assets
Copyrights $ Licences
Cost
As at April 1, 2015 10,287.69 21,256.20 85.48 259.22 21,600.90
Additions - - - 41.97 41.97
Disposals - - - - -
As at March 31, 2016 10,287.69 21,256.20 85.48 301.19 21,642.87
Additions - - - 254.03 254.03
Disposals - - - - -
As at March 31, 2017 10,287.69 21,256.20 85.48 555.22 21,896.90
Amortisation and impairment
As at April 1, 2015 - - - - -
Amortisation charge for the year - 3,036.60 41.14 34.75 3,112.49
Disposals - - - - -
As at March 31, 2016 - 3,036.60 41.14 34.75 3,112.49
Amortisation charge for the year - 3,036.60 38.02 61.08 3,135.70
Disposals - - - - -
As at March 31, 2017 - 6,073.20 79.16 95.83 6,248.19
Net book value
As at March 31, 2017 10,287.69 15,183.00 6.32 459.39 15,648.71
As at March 31, 2016 10,287.69 18,219.60 44.34 266.44 18,530.38
As at April 1, 2015 10,287.69 21,256.20 85.48 259.22 21,600.90
$ Includes trademarks and copyrights of ` 81.22 (2016 - `81.22 , 2015 - `81.22 ) pending for registration in the
name of the Company.
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 `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 recognised 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 `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.

NOTE 4. Investments
As at As at As at
March 31, 2017 March 31, 2016 April 1, 2015
Investment in subsidiaries (Unquoted)
Jyothy Fabricare Services Limited
98,00,000 (2016 - 98,00,000 , 2015 - 98,00,000) - - -
equity shares of `10 (2016 - `10 , 2015 - `10) each fully
paid up (Note 50)
33,00,000 (2016 - 33,00,000 , 2015 - 33,00,000) - - -
compulsory convertible preference shares of `100
(2016 - `100 , 2015 - `100) each fully paid up (Note 50)
Jyothy Kallol Bangladesh Limited
84,85,431 (2016 - 84,85,431 , 2015 - 74,94,696) equity 580.47 580.47 501.65
shares of BDT 10 (2016 - BDT 10 , 2015 - BDT 10) each
fully paid up
Share application money pending allotment - - 78.82
M/s JFSL - JLL (JV)-Partnership Firm 84.93 84.75 79.55
(Note 39)
665.40 665.22 660.02
Investment at fair value through profit and loss
Jyothy Fabricare Services Limited #
75,00,000 (2016- 75,00,000 , 2015- 75,00,000 ) 13,345.00 13,086.00 12,686.00
2% optionally convertible preference share of `10
(2016 - `10 , 2015 - `10) each fully paid up
Henkel SPIC Employees Co-operative Thrift and Credit
Society Limited*
2,000 (2016 - 2,000 , 2015 - 2,000) equity shares of 2.00 2.00 2.00
`100 (2016 - `100 , 2015 - `100) each fully paid up
Capexil (Agencies) Ltd*
5 (2016 -5 2015 -5) equity shares of `10,000 - - -
(2016- `10,000, 2015- `10,000) each fully paid up
Madras Industrial Cooperative Analytical Laboratory
Limited*
2 (2016-2 , 2015-2) equity shares of `500 (2016- `500, - - -
2015- `500) each fully paid up
Ambattur Industrial Estate Manufacturers Service
Industrial Cooperative Society Ltd*
1 (2016- 1 , 2015- 1) equity shares of `100 (2016- `100, - - -
2015- `100) each fully paid up
Indira Vikas Patra* 0.02 0.02 0.02
National Saving Certificates (Pledged with Government 0.57 0.57 0.57
authorities)*
13,347.59 13,088.59 12,688.59
14,012.99 13,753.81 13,348.61
Aggregate value of unquoted investments 14,012.99 13,753.81 13,348.61
Aggregate amount of impairment in value of investments - - -
# Optionally convertible preference shares are considered as financial asset valued through profit or loss as the
contractual terms of the asset do not give rise on specific dates to cash flows that are solely payments of principal and
interest (SPPI) on the principal amount outstanding
* Investment at fair value through profit or loss reflect investment in unquoted equity securities. Since the amount is not
material, the fair value disclousure have not been made. For others, Refer Note 46 and 47.

NOTE 5. Trade Receivables ( Unsecured )

Non Current Current
As at As at As at As at As at As at
March 31, March 31, April 1, March 31, March 31, April 1,
2017 2016 2015 2017 2016 2015
Trade receivables 569.27 - - 11,179.89 8,862.31 5,286.78
Receivable from related - - - 14.67 11.31 -
parties ( Note 35 )
569.27 - - 11,194.56 8,873.62 5,286.78
Considered good 569.27 - - 11,194.56 8,873.62 5,286.78
Considered doubtful - - - 1,174.34 1,174.34 1,247.22
569.27 - - 12,368.90 10,047.96 6,534.00
Impairment Allowance
(Provision for bad and
doubtful debts)
Considered doubtful - - - (1,174.34) (1,174.34) (1,247.22)
569.27 - - 11,194.56 8,873.62 5,286.78
Trade receivable are non interest bearing and are generally on advance term or for a term of 15-30 days.
No trade or other receivable are due from directors or other officers of the company either severally or jointly with
any other person, nor any trade or other receivable are due from firms or private companies respectively in which
any director is a partner, a director or a member.
For terms and conditions relating to related party receivables, refer Note 35
NOTE 6. Loans (Unsecured consider good, unless otherwise stated)

Non Current Current
2017 2016 2015 2017 2016 2015
Deposits 719.13 597.25 583.86 - - -
Less: Impairment Allowance (21.04) (21.04) (31.16) - - -
(Provisions for doubtful
advances)
698.09 576.21 552.70 - - -
NOTE 7. Other financial assets

Non Current Current
2017 2016 2015 2017 2016 2015
Fixed deposit with Banks 484.48 85.93 222.39 - - -
having original maturity
of more than 12 months
(Note 12b)
Interest receivable - - - - - 2.01
Staff Loans - - - 154.43 135.25 107.74
Other receivables 121.00 246.50 372.00 125.50 126.23 131.54
Less: Impairment Allowance - - - (21.06) (21.06) (21.06)
advances)
605.48 332.43 594.39 258.87 240.42 220.23

Break up of financial assets carried at amortised cost

Non Current Current
2017 2016 2015 2017 2016 2015
Trade receivables (Note 5) 569.27 - - 11,194.56 8,873.62 5,286.78
Loans (Note 6 ) 698.09 576.21 552.70 - - -
Other financial assets 605.48 332.43 594.39 258.87 240.42 220.23
(Note 7)
Cash and cash equivalent - - - 9,546.12 5,487.72 7,069.96
and other bank balances
( Note 12a and 12b)
Total financial assets carried 1,872.84 908.64 1,147.09 20,999.55 14,601.76 12,576.97
at amortised cost
NOTE 8. Income tax assets (net)

Non Current Current
2017 2016 2015 2017 2016 2015
MAT Credit entitlement 11,840.06 9,194.39 6,334.39 - - -
Advance income tax (net of 2,353.54 2,912.53 1,933.00 - - -
provisions of `14,267.10
(2016 `9,952.90, 2015
` 6,877.90)
14,193.60 12,106.92 8,267.39 - - -
NOTE 9. Other assets

Non Current Current
2017 2016 2015 2017 2016 2015
Capital Advances 355.16 772.68 94.83 - - -
Advance to suppliers * 494.85 58.45 65.85 1,326.51 1,562.55 1,475.82
Balance with government 9,970.51 8,954.81 7,346.56 1,806.33 1,353.79 1,952.36
authorities and protest
payments* (Note 41)
Prepaid Expenses - - - 470.73 203.73 173.02
Assets held for sale - - - 68.05 147.30 147.30
Less: Impairment Allowance (661.85) (225.45) (225.45) (881.50) (1,262.90) (1,192.89)
advances)
10,750.67 10,152.49 7,873.79 3,101.53 2,156.25 2,777.23
Note:
* Advance to suppliers and Balance with government authorities and protest payments include `494.85 (2016 -
`439.85, 2015 - `369.84) and `1,048.50 (2016 - `1,048.50 , 2015 - `1,048.50) respectively, considered doubtful
and fully provided for.

NOTE 10. Inventories (Valued at lower of cost or net realisable value)

As at As at As at
Raw and packing materials ( including goods in 5,310.41 4,923.16 5,118.88
transit ` Nil ( 2016- `2.19 , 2015- ` Nil )
Work in progress 1,525.59 1,547.72 1,371.28
Finished goods manufactured 8,437.81 8,080.29 7,333.55
Traded Goods ( including goods in transit `165.47 3,453.39 3,175.95 4,138.26
( 2016- `253.66 , 2015- `322.89))
Stores and spare parts 401.79 401.60 352.44
Sales Promotions Items 392.06 242.65 294.61
19,521.05 18,371.37 18,609.02
Inventories are net of provision of `1,159.97 (2016 - ` 799.28, 2015 - ` 1128.98) on account of damage and slow
moving inventories.
NOTE 11. Investments

As at As at As at
Investment at Fair value through profit and loss
Axis Banking Debt Fund - Growth
Nil (2016 - Nil , 2015 - 1,33,859.97) units of ` Nil - - 1,718.53
(2016 - ` Nil, 2015 - `1,000) each
Axis Liquid Fund - Growth
38,946.29 (2016 - 1,90,885.67, 2015 - Nil) units of 702.29 3,205.79 -
` 1,000 (2016 - ` 1,000 , 2015 - `Nil) each
Axis Short Term Fund
Nil (2016 - Nil , 2015 - 32,98,544.68) units of ` Nil - - 507.67
(2016 - ` Nil ,2015 - ` 10) each
Axis Treasury Advantage Fund - Growth
38,231.93 (2016 - Nil , 2015 - 2,65,018.71) units of 705.80 - 4,150.17
` 1,000 (2016 - `. Nil ,2015 - ` 1,000) each
HDFC Gilt Fund Long Term Plan -Direct Plan
-Growth
(2016 - ` Nil , 2015 - ` 10) each
HDFC High Interest Fund - Dynamic Plan
(2016 - ` Nil ,2015 - ` 10) each
ICICI Prudential Stp - Growth
(2016 - ` Nil , 2015 - `10) each
ICICI Prudential Ultra Short Term Plan - Dir - Gr
Nil (2016 - Nil , 2015 - 1,14,75,961.45) units of ` Nil - - 1,642.76
(2016 - ` Nil , 2015 - ` 10) each
Indiabulls Ultra Short Term Fund
Nil (2016 - 77,179.60 , 2015 - 1,15,556.48) units of ` - 1,140.52 1,561.03
Nil (2016 - ` 1,000 , 2015 - `1,000) each
Reliance Short Term Fund
(2016 - ` Nil , 2015 - ` 10) each

NOTE 11. Investments (contd.)

As at As at As at
Religare Invesco Short Term Fund
Nil (2016 - Nil, 2015 - 53,149.72) units of ` Nil - - 1,013.36
(2016 - ` Nil, 2015 - `1,000) each
Religare Invesco Ultra Short Term Fund - Direct Pl
Nil (2016 - Nil , 2015 - 51,584.63) units of ` Nil - - 1,001.48
(2016 - ` Nil , 2015 - ` 1,000) each
Taurus Short Term Income Fund
Nil (2016 - Nil , 2015 - 20,401.56) units of ` Nil - - 501.45
(2016 - ` Nil, 2015 - ` 1,000) each
Taurus Ultra Short Term Bond Fund Super Institution
Nil (2016 -16,293.49 , 2015 - 41,593.42) units of ` - 300.25 701.66
Nil (2016 - ` 1,000 , 2015 - ` 1,000) each
Taurus Dynamic Income Fund - Growth Option
Nil (2016 - 68,32,489.20, 2015 - Nil ) units of ` Nil - 1,027.65 -
(2016 - `10, 2015- ` Nil ) each
Kotak Low Duration Fund
Nil (2016 - 58,351.96, 2015 - Nil ) units of ` Nil - 1,080.58 -
(2016 - ` 1,000 , 2015 - ` Nil) each
1,408.09 6,754.79 16,700.33
For determination of fair values, refer Note 46
NOTE 12
Non Current Current
2017 2016 2015 2017 2016 2015
12 (a) Cash and cash
equivalents
Cash in hand - - - 10.97 13.83 17.71
Balance with banks - - - - 3,295.27 1,429.25 2,229.26
Current account
Unclaimed dividend - - - 106.49 139.28 53.34
accounts
- - - 3,412.73 1,582.36 2,300.31
12 (b) Other bank
balances
Deposits with original 484.48 85.93 222.39 6,133.39 3,905.36 4,769.65
maturity for more
than 12 months*
Amount disclosed (484.48) (85.93) (222.39) - - -
under 'other financial
assets' (Note 7)
- - - 6,133.39 3,905.36 4,769.65
- - - 9,546.12 5,487.72 7,069.96
* Includes deposits provided as securities against bank guarantees and debenture redemption reserves - `3,044.13
(2016 - ` 2,874.52 , 2015: 2,611.59)

NOTE 13. Share Capital

As at As at As at
AUTHORISED CAPITAL
2,720,000,000 (2016 - 2,570,000,000 , 2015 - 27,200.00 25,700.00 25,700.00
2,570,000,000) equity shares of Re 1 (2016 - Re 1 ,
2015 - Re 1) each
30,000 (2016 -Nil , 2015 -Nil) 11% cumulative 30.00 - -
preference shares of ` 100 (2016 - ` Nil, 2015 -`Nil)
each
27,230.00 25,700.00 25,700.00
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.
a. Reconciliation of the shares outstanding and at the end of the reporting period
Issued Equity Capital
As at March 31, 2017 As at March 31, 2016 As at April 1, 2015
No. Amount No. Amount No. Amount
Equity shares of
Re 1 each issued,
subscribed and fully
paid
At the beginning of 18,11,19,680 1,811.20 18,10,23,496 1,810.23 18,10,23,496 1,810.23
the period
Issued during the 5,64,044 5.64 96,184 0.97 - -
year (Note 38)
Outstanding at the 18,16,83,724 1,816.84 18,11,19,680 1,811.20 18,10,23,496 1,810.23
end of the period
b. Details of shareholders holding more than 5% shares in the Company

No. % Holding in No. % Holding in No. % Holding in
the class the class the class
Equity shares of Re 1
each fully paid
M. P. Ramachandran 7,01,36,948 38.60% 7,21,12,060 39.81% 7,21,12,060 39.84%
Sahyadri Agencies 1,50,00,000 8.26% 1,50,00,000 8.28% 1,50,00,000 8.29%
Limited
As per records of the Company, including its register of shareholders/ members and other declarations received
from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial
ownerships of shares.

c. Aggregate number of bonus shares issued, shares issued for consideration other than cash during the period
of five year immediately preceding the reporting date:
As at As at As at
Equity shares allotted as fully paid bonus shares by 23,79,748 23,79,748 23,79,748
capitalisation of securities premium (FY 2013 - 2014)
Equity shares issued for consideration other than 23,79,748 23,79,748 23,79,748
cash, pursuant to scheme of amalgamation with
erstwhile Jyothy Consumer Products Limited (JCPL)
(FY 2013 - 2014)
47,59,496 47,59,496 47,59,496
In addition the company has issued 564,044 share (2016 - 96,184, 2015 - Nil) during the period of five years
immediately preceding the reporting date on exercise of option granted under the employee stock option plan
(ESOP) wherein part consideration was received in form of employee services.
d. Share reserve for issue under option

For details of shares reserved for issue under the employee stock option (ESOP) plan of the company, please refer note 38
NOTE 14. Distibution made and Proposed

As at As at
March 31, 2017 March 31, 2016
Cash dividend on equity shares declared and paid :
Final dividend for the year ended March 31, 2016 Re 1 per share, 1,811.20 7,240.94
(2015 ` 4 per share)
Dividend distibution tax on final dividend 368.72 1,474.08
Interim dividend for the year ended March 31, 2017 ` Nil - 7,244.79
(2016 ` 4 per share)
Dividend distibution tax on interim dividend - 1,474.87
2,179.92 17,434.68
Proposed dividends on equity shares :
Final dividend for the year ended March 31, 2017 ` 6 per share, 10,901.02 1,811.20
( 2016 `1 per share)
Divident distibution tax on final dividend 2,219.19 368.72
13,120.21 2,179.92
Proposed dividends on equity shares are subject to approval at the annual general meeting and are not recognised
as as liability ( including DDT thereon ) as at March 31.

NOTE 15. Borrowings

Non Current Current
2017 2016 2015 2017 2016 2015
Secured redeemable zero
coupon non convertible
debentures
Nil (2016 - 4,000 , 2015 - - 40,000.00 40,000.00 - - -
4,000) debentures of ` Nil
(2016 - ` 10,00,000 , 2015
- ` 10,00,000 ) each (Note 1
below)
9.65% Secured redeemable
non convertible debentures
Nil (2016- Nil ,2015 - 650) - - 6,500.00 - - -
Debentures of ` Nil (2016-
` Nil , 2015 - ` 10,00,000)
each
10.25% Secured redeemable
non convertible debentures
Nil (2016 - Nil, 2015 - 500) - - 5,000.00 - - -
Debentures of ` Nil (2016
- ` Nil ,2015 - ` 10,00,000)
each
Secured redeemable non-
convertible debentures
4,000 (2016 - Nil 2015 - Nil) 40,000.00 - - - - -
Debentures of `10,00,000
(2016 - ` Nil , 2015 - ` Nil )
each (Note 2 below)
Deferred payment liability 180.00 180.00 360.00 - - -
(unsecured) (Note 3 below)
Commercial paper - - - 4,919.04 - -
(unsecured) (Note 4 below)
Amount disclosed under (40,180.00) (40,180.00) (11,860.00) - - -
'Other financial liabilities'
(Note 17)
- - 40,000.00 4,919.04 - -
Note :
1 4,000 Zero coupon non convertible redeemable debentures of ` 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 ` 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 memoradum of understanding (MOU) entered
into with the DRDE/DRDO of the Ministry of Defence, 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.

NOTE 16. Trade Payable

As at As at As at
Total outstanding dues of micro enterprises and small 2,778.61 4,682.31 3,728.17
enterprises (refer note 37 for details of dues to micro
and small enterprises)
Total outstanding dues of creditors other than micro 6,219.12 5,388.23 4,060.63
enterprises and small enterprises
Accrual for expenses 5,482.96 5,591.51 5,129.65
14,480.69 15,662.05 12,918.45
NOTE 17. Other financial liabilities

Non Current Current
2017 2016 2015 2017 2016 2015
Financial guarantee liabilities - - - 22.40 52.25 82.09
Interest accrued but not due - - 6,133.73 928.13 11,294.11 377.16
on loans
Security deposits - - - 35.28 29.68 32.08
Creditors for capital goods - - 75.81 - 75.81 90.97
Unclaimed dividend * - - - 106.49 139.28 53.34
Current maturities of long - - - 40,180.00 40,180.00 11,860.00
term borrowings (Note 15)#
- - 6,209.54 41,272.30 51,771.13 12,495.64
* There are no amounts payable / due to be credited to Investor Education and Protection Fund.
# Refer Note 15 above. As the holder of debentures have a put option at the end of 12 months from the date of
allotment i.e December 9, 2016 and on the last day of every calendar month thereafter, the entire amount of
debentures have been disclosed as current maturities in the current year.
For explanation on the Companies credit risk management processes, refer Note 48
Terms and conditions of the above financial liabilities:

1) Trade payables are non-interest bearing and are normally settled on 30-60 days term
2) Other payable are non interest bearing and are settled within a year.
3) Interest payable is settled as per the term of the borrowings.
Break up of financial liabilities carried at amortised cost

Non Current Current
2017 2016 2015 2017 2016 2015
Borrowings ( Note 15) - - 40,000.00 4,919.04 - -
Trade payables ( Note 16 ) - - - 14,480.69 15,662.05 12,918.45
Other financial liabilities - - 6,209.54 41,272.30 51,771.13 12,495.64
( Note 17 )
Total of financial liabilities - - 46,209.54 60,672.03 67,433.18 25,414.09
carried at amortised cost

NOTE 18. Provisions

Non Current Current
2017 2016 2015 2017 2016 2015
Provision for employee
benefits
Provision for leave - - - 921.39 750.70 709.56
encashment
Provision for gratuity 2,140.42 1,643.48 1,286.66 - - -
(Note 32)
2,140.42 1,643.48 1,286.66 921.39 750.70 709.56
Other provisions # - - - 2,179.76 2,179.76 2,184.32
2,140.42 1,643.48 1,286.66 3,101.15 2,930.46 2,893.88
# Movements in other provisions As at As at

March 31, 2017 March 31, 2016
Balance as at 1st April 2,179.76 2,184.32
Arising during the year 300.00 -
Reversal during the year (300.00) (4.56)
Balance as at 31st March 2,179.76 2,179.76
NOTE 19. Deferred tax liabilities/ (assets) (net)

As at As at As at
March 31, 2017 March 31, 2016 Arril 1, 2015
a) Deferred tax liability
Depreciation 10,177.04 10,978.90 11,690.66
Freehold Land 351.26 353.64 356.72
Fair value adjustments 2.80 45.28 86.64
(A) 10,531.10 11,377.82 12,134.02
b) Deferred tax assets
Provision for gratuity 740.76 565.04 439.47
Provision for leave encashment 318.87 255.66 242.48
Provision for doubtful debts 406.42 113.44 113.44
Provision for doubtful advances 548.69 523.79 503.06
Other provisions 752.93 568.27 568.27
Other disallowances 58.69 77.94 90.10
Carry forward losses and unabsorbed depreciation* 2,885.98 - 5,300.18
(B) 5,712.34 2,104.14 7,257.00
Net deferred tax liabilities/ (assets) (A-B) 4,818.76 9,273.68 4,877.02
* Refer Note 43 on merger of JCPML. From the effective date of the merger, the conditions of reasonable
certainty for utilisation of unused tax losses of JCPML are met in accordance with the Ind AS 12 Income Taxes and
accordingly the Company has recognised deferred tax assets on these losses.

NOTE 20. Other liabilities

As at As at As at
Statutory dues 2,048.97 1,915.96 1,658.16
Advances from customers 369.00 613.43 211.38
Advances towards asset held for sale 20.00 20.00 95.83
Provision for sales promotion schemes 1,993.97 1,780.45 1,018.70
4,431.94 4,329.84 2,984.07
NOTE 21. Tax liabilities (net)

As at As at As at
Provision for income tax (net of advance tax of 299.01 534.48 374.88
`3,131.28 (2016 `3,777.52, 2015 ` 2,700.12))
299.01 534.48 374.88
NOTE 22. Revenue from operations

March 31, 2017 March 31, 2016
Sale of goods (including of excise duty) 1,69,632.95 1,60,706.89
1,69,632.95 1,60,706.89
Other Operating revenues
Export incentives 37.31 22.10
Sale of scrap 32.83 35.04
Agricultural income 6.92 6.05
Others 105.89 120.20
182.95 183.39
1,69,815.90 1,60,890.28
Sale of goods includes excise duty collected from customer of `6,453.30 ( March 31,2016 - ` 5,965.53). Sale of
goods net of excise duty is ` 163,179.65 ( March 31, 2016 - ` 154,741.36).
NOTE 23. Other Income

March 31, 2017 March 31, 2016
Lease rent income 5.37 8.52
Foreign exchange fluctuation gain (net) 64.62 -
Gain on financial assets fair valued through profit or loss 267.09 530.52
Profit on sale of current investments 78.94 579.01
Profit on sale of fixed assets 7.38 49.74
Miscellaneous income 0.82 6.65
424.22 1,174.44
NOTE 24. Finance Income

March 31, 2017 March 31, 2016
Interest on fixed deposit 608.80 384.38
Interest on capital invested in partnership firm 11.12 11.15
Interest others 95.94 37.96
715.86 433.49

NOTE 25. Cost of Raw Materials and Components consumed

March 31, 2017 March 31, 2016
Inventory at the beginning of the year 4,923.16 4,960.17
Opening stock pursuant to Scheme of amalgamation of Jyothy - 158.71
Consumer Products Marketing Limited ( Note 43)
Add: Purchases 52,066.32 48,723.20
56,989.48 53,842.08
Less: Inventory at the end of the year 5,310.41 4,923.16
51,679.07 48,918.92
NOTE 26. (Increase)/decrease in inventories of finished goods, work-in- progress and traded goods
March 31, 2017 March 31, 2016
Closing Inventory
Finished goods 8,437.81 8,080.29
Traded Goods 3,453.39 3,175.95
Work in progress 1,525.59 1,547.72
13,416.79 12,803.96
Opening inventory
Traded Goods 3,175.95 4,106.74
12,803.96 12,795.87
Opening inventory pursuant to Scheme of amalgamation of Jyothy
Consumer Products Marketing Limited ( Note 43 )
Finished goods - 13.49
Traded Goods - 31.52
Work in progress - 2.21
- 47.22
Sub-total (A) (612.83) 39.13
(Increase)/decrease in excise duty
Excise duty on closing inventory 180.39 175.78
Excise duty on opening inventory 175.78 146.87
Excise duty on opening inventory pursuant to Scheme of amalgamation - 1.63
of Jyothy Consumer Products Marketing Limited ( Note 43)
Sub-total (B) (4.61) (27.28)
Total (A-B) (608.22) 66.41
NOTE 27. Employee benefits expense

March 31, 2017 March 31, 2016
Salaries, wages and bonus 11,779.87 10,538.71
Contribution to provident and other funds 901.26 858.07
Gratuity (Note 32) 325.09 277.09
Staff welfare expenses 618.87 630.15
Directors' remuneration (Note 35) 1,067.00 1,509.97
Field staff incentives 275.00 370.57
Sub-total (A) 14,967.09 14,184.56
Employee stock option expenses (Note 38) 236.30 1,627.83
Sub-total (B) 236.30 1,627.83
Total (A+B) 15,203.39 15,812.39

NOTE 28. Depreciation and amortization expense

March 31, 2017 March 31, 2016
Depreciation on tangible assets 2,338.36 2,308.38
Amortization of intangible assets 3,135.70 3,112.49
5,474.06 5,420.87
NOTE 29. Finance Cost

March 31, 2017 March 31, 2016
Interest on bank overdraft and loan 698.26 9.21
Redemption Premium / Interest accrued on debentures 4,321.43 5,608.48
Other borrowing cost 69.22 28.25
5,088.91 5,645.94
NOTE 30. Other expenses

March 31, 2017 March 31, 2016
Power and fuel expenses 1,901.58 1,908.32
Rent 1,418.94 1,278.25
Insurance 126.55 102.85
Repairs and maintenance
- Building 94.46 59.90
- Plant and machinery 144.14 199.62
- Others 278.69 260.44
Consumption of stores and spares 635.28 733.15
Research and development 109.99 150.35
Printing and stationery 65.11 82.87
Communication costs 286.59 296.02
Legal and professional fees (Note 33 (A)) 1,226.31 1,179.61
Rates and taxes 595.45 596.96
Directors' sitting fees 5.85 6.75
Vehicle maintenance 175.42 156.47
Donation 6.18 6.61
Conversion charges 996.33 863.74
Advertisement and sales promotion expense 11,759.11 11,700.35
Freight, handling and forwarding charges 10,061.56 9,545.86
Field staff expenses 1,498.76 1,411.41
Travelling and conveyance 444.83 331.96
Royalty 287.94 288.33
Loss on sale of assets held for sale 18.20 -
Corporate social responsibility expenses ( Note 33(B)) 244.43 234.84
Miscellaneous expenses 817.51 1,212.53
33,314.50 32,780.56

NOTE 31. Income tax

March 31, 2017 March 31, 2016
The major components of income tax expense for the years ended March
31, 2017 and March 31, 2016 are :
a. Profit or loss section
Income tax expenses
Current tax
Current tax (MAT) 3,430.29 4,312.00
Current income tax expenses - 1,452.00
Deferred tax relating to origination and reversal of temporary differences (4,393.80) 4,430.29
(3,608.53) 5,882.29
b. OCI Section
Deferred tax related to items recognised in OCI during the year :
Net loss /(gain) on remeasurements of defined benefit plans 61.12 33.64
61.12 33.64
c. Reconciliation of tax expense and accounting profit multiplied by
India’s domestic tax rate
Accounting profit before tax 16,595.97 13,334.33
Tax rate 34.608% 34.608%
Tax at statutory rate 5,743.53 4,614.74
Less:
Deferred tax assets created pursuant to merger of JCPML (Note 43) (9,579.80) -
Non-deductible tax loss of JCPML for year March 31, 2016 * - 1,250.37
Tax benefits under sections 80IB, 80IC and 80IE of the Income tax Act, (371.95) (847.81)
1961
CSR expenses disallowed 84.59 81.27
Unrealised gain on FVTPL financial assets (in absence of reasonable (89.63) (138.43)
certainty of long term capital gain)
Tax benefits no longer available 785.27 1,003.63
Others (180.54) (81.48)
Adjusted tax expense (3,608.53) 5,882.29
Tax expense (3,608.53) 5,882.29
* Non-deductible tax loss of JCPML for the year ended March 31, 2016 accounted retrospectively due to common control
acquisition, however, merger to be effective for tax purposes only from appointed date i.e. April 1, 2016.
d. Reconciliation of deferred tax liabilities / (assets) net

Opening balance as of 1st April 9,273.68 4,877.02
Tax (income) / expense during the year recognised in profit or loss (4,393.80) 4,430.29
Tax (income) / expense during the year recognised in OCI (61.12) (33.64)
Closing balance as at 31st March 4,818.76 9,273.68
e. Unrecognised deferred tax assets
As at March 31, 2017 the Company does not have any unrecognised deferred tax assets. As at March 31, 2016 and April
1, 2015, unrecognised deferred tax assets amounted to `9,190.37 and `10,283.04 respectively, on unused carry forward
losses of JCPML. Pursuant to merger of JCPML in the current year the conditions of resonable certanity for utilisation of
unused losses as per IND-AS 12- ‘ Income taxes’ are met on the effective date of the merger and accordingly, the deferred
tax assets have been recognised.

NOTE 32. Gratuity

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 (LIC). Every year the Company makes contribution to
fund determined based on actuarial valutation done by LIC.
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.
March 31, 2017 March 31, 2016

Gratuity Funded Gratuity Funded
(A) Summary of the Actuarial Assumptions
Mortality IALM (2006-08) IALM (2006-08)
Ult. Ult.
Discount rate 7.10% 7.80%
Rate of increase in compensation 8.00% 8.00%
Withdrawal rates 10.00% 10.00%
The estimates of future salary increases considered in actuarial valuation
take account of inflation, seniority, promotion and other relevant factors
such as supply and demand in the employment market.
(B) Changes in present value of obligations (PVO)

PVO at beginning of period 2,007.10 1,920.72
Interest cost 156.44 150.14
Current Service Cost 196.62 176.18
Benefits Paid (62.48) (312.65)
Re-measument changes arising from changes in financial assumptions 109.63 -
Experience adjustments 52.98 72.71
PVO at end of period 2,460.29 2,007.10
(C) Changes in fair value of plan assets

Fair value of plan assets at the beginning of period 363.62 634.06
Investment Income 28.34 49.60
Contributions - 7.99
Benefit paid (58.13) (307.41)
Return on plan assets (13.96) (20.62)
Fair value of plan assets at end of period 319.87 363.62
(D) Expenses recognised in the statement of profit and loss

Current service cost 196.62 176.18
Net Interest cost on the Net Defined Benefit Liability / (Asset) 128.47 100.91
Expense recognised in the statement of profit and loss 325.09 277.09
(E) Remeasurement gains/(losses) in other comprehensive income

Return on plan assets 13.96 20.62
Re-measument changes arising from changes in financial assumptions 109.63 -
Total amount recognised in OCI 176.57 93.33

March 31, 2017 March 31, 2016

Gratuity Funded Gratuity Funded
(F) The major categories of plan assets as a percentage of the fair value
of total plan assets are as follows:
Investment with insurer 100% 100%
As at As at As at
March 31, 2017 March 31 ,2016 April 1 ,2015
(G) Net Assets/(Liabilities) recognised in the balance sheet
PVO at end of period (2,460.29) (2,007.10) (1,920.72)
Fair value of plan assets at end of period 319.87 363.62 634.06
Funded status (deficit in fair value of plan assets over PVO) (2,140.42) (1,643.48) (1,286.66)
Net assets / (Liability) recognised in the balance sheet (2,140.42) (1,643.48) (1,286.66)
(H) Sensitivity Analysis:

Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate,
expected salary increase and mortality. The sensitivity analysis below have been determined based on
reasonably possible changes of the assumptions occurring at the end of the reporting period, while holding
all other assumptions constant.
The results of sensitivity analysis is given below:
Particulars March 31, 2017 March 31, 2016

Defined Benefit Obligation (Base) 2,460.29 2,007.10

Decrease Increase Decrease Increase
Discount Rate (- / + 1%) 2,632.95 2,306.14 2,147.70 1,881.60
(% change compared to base due to sensitivity) 7.00% -6.30% 7.00% -6.30%
Salary Growth Rate (- / + 1%) 2,323.81 2,606.56 1,894.80 2,127.78
(% change compared to base due to sensitivity) -5.50% 5.90% -5.60% 6.00%
Attrition Rate (- / + 50% of attrition rates) 2,482.71 2,444.61 1,997.05 2,011.29
(% change compared to base due to sensitivity) 0.90% -0.60% -0.50% 0.20%
Mortality Rate (- / + 10% of mortality rates) 2,460.27 2,460.30 2,006.93 2,007.26
(% change compared to base due to sensitivity) 0.00% 0.00% 0.00% 0.00%
(I) Asset Liability Matching Strategies
The Company has purchased insurance policy, which is basically a year-on-year cash accumulation plan in which
the interest rate is declared on yearly basis and is guaranteed for a period of one year. The insurance Company, as
part of the policy rules, makes payment of all gratuity outgoes happening during the year (subject to sufficiency of
funds under the policy). The policy, thus, mitigates the liquidity risk. However, being a cash accumulation plan, the
duration of assets is shorter compared to the duration of liabilities. Thus, the Company is exposed to movement
in interest rate (in particular, the significant fall in interest rates, which should result in a increase in liability without
corresponding increase in the asset).
(J) Effect of Plan on Entity’s Future Cash Flows
a) Funding arrangements and Funding Policy
The Company has purchased an insurance policy to provide for payment of gratuity to the employees.
Every year, the insurance company carries out a funding valuation based on the latest employee data
provided by the Company. Any deficit in the assets arising as a result of such valuation is funded by the
Company.

b) Maturity Profile of Defined Benefit Obligation
Weighted average duration (based on discounted cashflows) 7 years

Expected cash flows over the next (valued on undiscounted basis) Amount
1 year 344.79
2 to 5 years 1,099.98
6 to 10 years 1,131.37
More than 10 years 1,741.31
NOTE 33. A) Payment to auditors (excluding service tax)

March 31, 2017 March 31, 2016
As Auditors
Audit fee 76.85 62.85
Tax audit fees 8.00 8.70
Limited review 26.40 26.00
In other capacity (Certification) 2.40 3.95
Reimbursement of expenses 4.60 4.94
118.25 106.44
B) Expenditure related to Corporate Social Responsibility as per Section 135 of the Companies Act, 2013 read
with Schedule VII is as given below:
March 31, 2017 March 31, 2016
(a) Gross amount required to be spent during the year 294.10 195.30
In Cash Yet to be Total In Cash Yet to be Total

paid in cash paid in cash
(b) Amount spend during
the year : -
Promoting preventing health - - - 44.28 - 44.28
care and sanitation
Contribution to various 0.40 - 0.40 5.00 - 5.00
educational institutions
Rural/slum area 53.32 - 53.32 185.56 - 185.56
development
Contribution to 25.00 - 25.00 - - -
Mathrubhumi Mission
Medical College
Imparting Skill Development 163.99 - 163.99 - - -
Training
Others 1.72 - 1.72 - - -
Total 244.43 - 244.43 234.84 - 234.84

NOTE 34. Segment Reporting

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 :
1. Dishwashing includes dish wash scrubber and scrubber steel, dish wash bar, liquid and powder.
2. Fabric Care includes fabric whitener, fabric enhancer, bar soap and detergent powder.
3. Household Insecticides includes mosquito repellent coil, liquid and card and insect repellents.
4. Personal Care includes body soap, face wash, toothpaste, deodorants, talcum powder, after shave and
moisturiser.
5. 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.
Year ended March 31, 2017
Dishwash- Fabric care Household Personal Other Total Adjustments Total
ing insecticides care products Operating and
segments eliminations
Revenue
External revenue 50,891.18 73,087.00 26,118.57 15,954.89 3,581.31 1,69,632.95 - 1,69,632.95
Inter segment 136.00 14.00 - 2.00 - 152.00 (152.00) -
revenue
Total revenue 51,027.18 73,101.00 26,118.57 15,956.89 3,581.31 1,69,784.95 (152.00) 1,69,632.95
Income/
(Expenses)
Depreciation and (650.56) (3,138.66) (399.01) (924.36) (5.73) (5,118.32) (355.74) (5,474.06)
amortisation
Segment profit 5,995.49 13,536.07 406.72 2,258.41 165.81 22,362.50 (5,766.53) 16,595.97
Total assets 15,822.81 40,784.39 14,582.99 10,426.57 946.26 82,563.02 58,264.93 1,40,827.95
Total liabilities 5,717.66 9,013.79 5,718.30 3,217.20 280.12 23,947.07 51,516.24 75,463.31
Other disclosures
Capital 1,860.43 1,857.84 753.20 1,070.00 33.43 5,574.90 (20.16) 5,554.74
expenditure


Particulars Dishwash- Fabric care Household Personal Other Total Adjustments Total
Revenue
External revenue 47,669.00 67,531.84 27,822.00 14,749.29 2,934.76 1,60,706.89 - 1,60,706.89
Inter segment - - - 18.00 - 18.00 (18.00) -
revenue
Total revenue 47,669.00 67,531.84 27,822.00 14,767.29 2,934.76 1,60,724.89 (18.00) 1,60,706.89
Income/
(Expenses)
Depreciation and (641.19) (3,156.70) (361.76) (899.86) (6.35) (5,065.86) (355.01) (5,420.87)
amortisation
Segment profit 5,067.44 11,031.30 1,014.52 1,967.13 83.55 19,163.94 (5,829.61) 13,334.33
Total assets 13,777.89 38,449.78 13,957.27 9,700.70 870.17 76,755.81 56,602.88 1,33,358.69
Other disclosures
Capital 100.37 919.60 301.91 218.50 25.93 1,566.31 929.95 2,496.26
expenditure
Year ended April 1, 2015

Particulars Dishwash- Fabric care Household Personal Other Total Adjustments Total
Total assets 11,955.24 41,210.36 12,204.15 9,432.71 778.58 75,581.04 64,086.20 1,39,667.24
Reconiliations to amount reflected in the financial statements

March 31, 2017 March 31, 2016
(a) Reconciliation of profit
Segment profit 22,362.50 19,163.94
Finance Income (Note 24) 715.86 433.49
Other unallocable income 93.87 581.99
Gain on financial assets fair valued through profit or loss (Note 23) 267.09 530.52
Finance cost (Note 29) (5,088.91) (5,645.94)
Other unallocable expenses (1,754.44) (1,729.67)
Profit before tax 16,595.97 13,334.33

As at As at As at
b) Reconciliations of assets
Segment operating assets 82,563.02 76,755.81 75,581.04
Investment (Note 4 and 11) 15,421.07 20,508.60 30,048.94
Other financial assets (Note 7) 484.48 85.93 222.39
Income tax assets ( net ) (Note 8) 14,193.60 12,106.92 8,267.39
Cash and cash equivalent 9,514.06 5,460.95 7,037.96
Tangible and intangible assets 16,850.17 16,764.52 16,802.85
Other unallocable assets 1,801.55 1,675.96 1,706.67
Total assets 1,40,827.95 1,33,358.69 1,39,667.24
As at As at As at
c) Reconciliations of liabilities
Segment operating liabilities 23,947.08 24,555.73 20,113.90
Deferred tax liabilities (Net) (Note 19) 4,818.73 9,273.68 4,877.02
Borrowings 44,919.04 40,000.00 51,500.00
Tax liabilities (net) (Note 21) 299.01 534.48 374.88
Interest accrued but not due on loans (Note 17) 928.13 11,294.11 6,510.89
Other unallocable liabilities 551.32 487.12 663.45
Revenue from external customers :

March 31, 2017 March 31, 2016
India 1,65,803.44 1,57,282.68
Outside India 3,829.51 3,424.21
Total revenue per statement of profit or loss 1,69,632.95 1,60,706.89
The revenue information above is based on the location of the customers. All non current operating assets of the
Company are located in India. Non operating assets for this purpose consists of property, plant and equipment
and intangible assets.
Revenue from one customer amounted to ` 21,798.02 ( March 31, 2016 - `19,632.57 ), arising from sales in various
segment.
NOTE 35. 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.
Other Subsidiaries
Four Seasons Drycleaning Company Private Limited
Snoways Laundrers & Drycleaners Private Limited
M/S JFSL-JLL (JV) - Partnership firm

b) 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
c) Transactions with related parties during the year

March 31, 2017 March 31, 2016
M.P. Ramachandran
Remuneration* Re.1 only Re.1 only
Commission 358.82 421.04
Dividend 723.12 5,768.96
Sahyadri Agencies Limited
Dividend 150.00 1,200.00
Quilon Trading Company
Rent Paid 1.20 1.20
Dividend 19.04 152.32
Dividend 13.20 105.60
Sale of Finished goods (net of sales return ) 13.15 12.54
Purchases of services 0.13 0.15
Corporate Guarantees given for borrowings outstanding 4,968.83 4,507.84


March 31, 2017 March 31, 2016
M/S JFSL-JLL (JV)
Profit/(loss) in partnership (3.68) 7.30
Interest on partner capital 11.12 11.15
Investment /(Withdrawal) of capital 3.50 (12.50)
Corporate Guarantees given for borrowings outstanding 727.44 902.44
Sales of raw materials and packing material and finished goods 97.02 65.35
Investment in share capital - 78.82
Relatives of individuals having control
Remuneration*
M.R. Jyothy 131.76 102.48
M P Sidharthan 24.00 24.00
M R Deepthi 47.71 37.51
Ananth Rao T 57.12 45.03
Ravi Razdan 47.71 37.51
M.P. Divakaran 24.00 24.00
Dividend 290.94 2,327.52
Remuneration*#
K. Ullas Kamath 227.25 201.60
S. Raghunandan 1,515.66 485.12
M.L. Bansal 9.71 41.97
Rajnikant Sabnavis 383.79 -
Shreyas Trivedi 58.38 -
Dividend
S. Raghunandan - 15.63
Contribution to Superannuation fund
Fee for attending board / committee meetings
Bipin R. Shah 0.60 1.35
Nilesh B. Mehta 1.55 1.75
R. Lakshminarayanan 1.05 0.85
K. P. Padmakumar 0.90 1.20
Commission
Bipin R. Shah - 8.00
* As the future liabilities for gratuity is provided on an actuarial basis for the Company as a whole, the amount
pertaining to individual is not ascertainable and therefore not included above.
# In the earlier years, Company had applied to the Central Government for approval of grant of ESOP’s to a
whole time director and CEO as the value of the ESOP’s granted were expected to be in excess of the eligible
limits under the Companies Act, 1956. During the year, certain ESOP’s have been exercised by the Director
(452,558 shares issued) and as managerial remuneration includes perquisite value of ESOP’s in the year it
is exercised, the overall value of Managerial Remuneration for the current year is in excess of the limits to

the extent of `783.64. Subsequent to the year end, the Company has received an approval from the Central
Government for an amount that can be paid to the director for the three years ending May 2017, however, the
said ESOP’s have not been considered separately.
The Company has now filed an application seeking approval of grant of ESOP’s again. Pending such approval,
the shares issued to the managerial person are held by him in trust as he continues to be the employee of the
Company though no longer a Director. In case the revised application is not approved, the Company plans to
recover the excess amount paid through balance stock options yet to be exercised by the said employee.
d) Related party balances

As at As at As at
Amounts receivable
Trade receivables :
Jyothy Kallol Bangladesh Limited 14.67 11.31 -
Amounts payable
Trade payables:
M.P. Ramachandran 358.82 421.04 312.69
K. Ullas Kamath 322.94 378.93 281.42
Bipin R. Shah - 8.00 8.00
Nilesh B. Mehta 8.00 8.00 8.00
R. Lakshminarayanan 8.00 8.00 8.00
K. P. Padmakumar 8.00 8.00 8.00
Terms and conditions of transactions with related parties
The Sales to / purchases from related parties are made on terms equivalent to those that prevail in arm’s length transactions
and outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash. There have been no
guarantees provided or received for any related party receivables or payables.
NOTE 36. Commitments and Contingencies

A) 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 `1,418.94 (2016 - `1,278.25). There are no restrictions imposed by lease arrangements.
April 1, 2016 to April 1, 2015 to April 1, 2014 to
March 31, 2017 March 31, 2016 March 31, 2015
Future minimum lease payment under non -
cancellable operating leases are as follows:
Payable not later than one year 299.79 295.69 45.82
Payable later than one year and not later than five 831.08 706.51 0.64
years
Payable later than five years - 104.51 -
1,130.87 1,106.71 46.46
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 ` 178.06 and ` 22.83 (2016 - ` 178.06 and ` 11.44) respectively. Lease rent
income for the year ended March 31, 2017 was ` 5.37 (2016 – ` 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.

B) Capital Commitments ( Net of Advances)

As at As at As at
Estimated amount of contracts remaining to be executed on 599.66 1,050.72 441.50
capital account and not provided for
599.66 1,050.72 441.50
C) Contingent Liabilities
In respect of the following, the Company has assessed that it is only possible, but not probable, that outflow of economic
resources will be required :
(i) Tax matters
(a) Disputed sales tax demands – matters under appeal 2,554.15 2,429.72 2,329.45
(b) Disputed excise duty and service tax demand - 4,782.79 3,864.18 2,963.75
matter under appeal
(c) Disputed income tax demand - matter under appeal * 3,172.93 6,733.15 3,741.60
(ii) Other statutory dues - 3.83 7.72
(iii) Amount outstanding in respect of corporate guarantees 5,696.27 5,410.28 5,165.06
(iv) Claims against the company not acknowledged as 226.67 226.67 -
debts.
* 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.
The above disclousure does not cover matters where the exposure has been assessed to be remote.
NOTE 37. Micro, Small and Medium Enterprises Development Act, 2006 ( ‘MSMED’)
The disclosure pursuant to the said Act is as under :
As at As at As at
Principal amount due to suppliers under MSMED Act 2,778.61 4,682.31 3,728.17
Interest accrued and due to suppliers under 7.08 4.97 4.05
Section 16 of MSMED Act, 2006 on the above
amount, unpaid
Interest paid to suppliers under the MSMED Act - - -
Interest due and payable towards suppliers under - - -
MSMED Act towards payment already made
Interest accrued and remaining unpaid at the end of 7.08 4.97 4.05
accounting year
The above information has been determined to the extent such parties have been identified on the basis of
information available with the Company.
NOTE 38. Share-based payments
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: -
(“ESOS -2014”) (“ESOS -2014”) (“ESOS -2014 - A”)
Grant – I Grant – II
Date of Grant August 16, 2014 January 27, 2015 August 16, 2014
Number of options granted 5,03,445 34,507 27,15,352
Vesting period 33% - Year 1 33% - Year 1 66.67% - Year 1
33% - Year 2 33% - Year 2 16.67% - Year 2
34% - Year 3 34% - Year 3 16.66% - Year 3
Exercise period 5 years from the respective dates of vesting
Exercise Price - Per share `1 `1 `1
Market price at grant date - Per share `188.70 `289.80 `188.70
The fair value of option granted is estimated at the grant date using Black Scholes valuation model, taking into
account the term and conditions upon which the share options were granted.

The following table illustrates the number and movements in share options during the year,
(“ESOS -2014”) (“ESOS -2014”) (“ESOS -2014 - A”)
Outstanding at April 1, 2015 4,50,451 34,507 27,15,352
Granted during 2015-16 - - -
Cancelled during 2015-16 87,970 34,507 4,52,559
Exercised during 2015-16 96,184 - -
Outstanding at March 31, 2016 2,66,297 - 22,62,793
Exercisable at March 31, 2016 2,66,297 - 22,62,793
Outstanding at April 1, 2016 2,66,297 - 22,62,793

Cancelled during 2016-17 19,674 - -
Exercised during 2016-17 1,11,486 - 4,52,558
For option exercised during the period, the weighted average share price at the exercise date was ` 324.38 per
share (2016 - `297.94)
No new stock option have been granted by the company in the current year
The following table list inputs to the model used for the year ended March 31, 2017 and March 31, 2016
Variables (“ESOS -2014”)- Grant – I

Vest 1 Vest 2 Vest 3
August 16, 2015 August 16, 2016 August 16, 2017
Volatility 36.19% 37.32% 40.33%
Riskfree Rate 8.73% 8.72% 8.72%
Exercise Price (`) 1.00 1.00 1.00
Dividend yield 1.59% 1.59% 1.59%
Option fair value vest wise of per stock option 177.75 174.99 172.27
granted (`)
Variables (“ESOS -2014 - A”)

Volatility 36.19% 37.32% 40.33%
Riskfree Rate 8.73% 8.72% 8.72%
Exercise Price (`) 1.00 1.00 1.00
Option fair value vest wise of per stock option 177.75 174.99 172.27
granted (`)
The expected volatility reflects the assumption that the historical volatility over a period similar to the life of the
options is indicative of future trends, which may not necessarily be the actual outcome.

NOTE 39. Details of Investments in partnership firm

Share of partner in profits (%)
As at As at As at
Name of Partner
Share of partner in profits (%)
Jyothy Fabricare Services Limited 75.00% 75.00% 75.00%
Jyothy Laboratories Limited 25.00% 25.00% 25.00%
Total capital of the firm 339.72 339.00 318.20
NOTE 40.
Earning per share (`)
Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the parent by
the weighted average number of Equity shares outstanding during the year.
Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the parent by the
weighted average number of Equity shares outstanding during the year plus the weighted average number of
Equity shares that would be issued on conversion of all the dilutive potential Equity shares into Equity shares.
The following reflects the income and share data used in the basic and diluted EPS computations:

March 31, 2017 March 31, 2016
Net Profit for calculation of basic and diluted EPS 20,204.50 7,452.04
Weighted average number of shares for calculation of basic EPS 18,14,06,238 18,10,77,764
Effect of dilution :
Stock option granted under ESOP scheme 1,26,449 25,06,850
Weighted average number of shares for calculation of diluted EPS 18,15,32,687 18,35,84,614
Basic EPS (`) 11.12 4.12
Diluted EPS (`) 11.12 4.06
NOTE 41. 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 `958.87 (2016 `940.48) in the current year.

NOTE 42. Details of Specified Bank Notes (SBN) held and transacted during the period from 8th November, 2016
to 30th December, 2016 as per MCA notification no G.S.R. 308 (‘E) dated March 31st, 2017 is as provided in the
table below:-
SBNs Other Total

Denomination
notes
Closing cash in hand as on 08.11.2016 32.53 8.80 41.33
Add: Withdrawal from Bank accounts - 38.53 38.53
Less: Paid for Permitted payments - (35.42) (35.42)
Less: Amount deposited in Banks (32.53) - (32.53)
Closing cash in hand as on 30.12.2016 - 11.91 11.91
The above information has been determined on the basis of the information available with the Company.
NOTE 43. 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:-
a. All assets and liabilities of JCPML as at April 1, 2015 have been taken over at their existing book values.
b. The debit balance of reserves of `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.
c. 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 (`994.00) as per the
scheme.
NOTE 44. 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 upto 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.
NOTE 45. Significant accounting judgements, estimates and assumptions

The preparation of the Company’s financial statements requires management to make judgements, 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.
a) Judgements
In the process of applying the Company’s accounting policies, management has made the following judgements,
which have the most significant effect on the amounts recognised 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.

b) 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 judgement is required in establishing fair values. Judgements include considerations of various inputs
including liquidity risk, credit risk , volatility etc. Changes in assumptions/judgements 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 recognised for unused tax losses to the extent that it is probable that taxable profit will be
available against which the losses can be utilised. Significant management judgement is required to determine the
amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable
profits together with future tax planning strategies.
Futher, the Company has recognised Minimum Alternate Credit (MAT) which can utilised 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 utilised. Also refer footnote number 10 in Note 50.

NOTE 46. Fair values

Set out below, is a comparison by class of the carrying amounts and fair value of the Company’s financial
instruments, other than those with carrying amounts that are reasonable approximations of fair values:
Carrying values Fair values

2017 2016 2015 2017 2016 2015
Financial Assets
Investment 14,753.09 19,840.79 29,386.33 14,753.09 19,840.79 29,386.33
Deposits 698.09 576.21 552.70 698.09 576.21 552.70
Total 15,451.18 20,417.00 29,939.03 15,451.18 20,417.00 29,939.03
Financial Liabilities
Borrowings 44,919.04 40,000.00 51,500.00 44,919.04 40,000.00 51,500.00
Financial guarantee 22.40 52.25 82.09 22.40 52.25 82.09
contracts
Total 44,941.44 40,052.25 51,582.09 44,941.44 40,052.25 51,582.09
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.
NOTE 47. 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 :
Particulars Date of Total Fair value measurement using
valuation Quoted prices Significant Significant
in active Observable Unobservable
markets Inputs Inputs
(Level 1) (Level 2) (Level 3)
Fair value of financial assets disclosed
March 31, 2017 14,753.09 1,408.09 - 13,345.00
Investment March 31, 2016 19,840.79 6,754.79 - 13,086.00
April 1, 2015 29,386.33 16,700.33 - 12,686.00
There have been no transfers between Level 1 and Level 2 during the period.
The Company does not have any financial liabilities fair valued through profit or loss.
Significant unobservable inputs used in level 3 fair values:
As at March 31, 2017 Significant unobservable inputs Sesitivity of input to fair value measurement
Investment (optionally Terminal value growth rate: 5% 0.5% increase will increase fair value by ` 828
convertible redeemable lacs and 0.5% decrease will decrease fair value
preference share) by ` 726 lacs
Discount Rate: 12.5% 0.5% increase will decrease fair value by ` 1,234
lacs and 0.5% decrease will increase fair value
by ` 1,408 lacs

NOTE 48. Financial risk management objectives and policies

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 analyse 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.
A. 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 optimise 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
Particulars Less than 1 Year 1 to 5 years 5 years and Total

above
As at March 31, 2017
Borrowings and Other financial liabilities* 26,191.34 20,000.00 - 46,191.34
Trade and other payables 14,480.69 - - 14,480.69
40,672.03 20,000.00 - 60,672.03
Borrowings and Other financial liabilities 51,771.13 - - 51,771.13
67,433.18 - - 67,433.18
As at April 01, 2015
Borrowings and Other financial liabilities 12,211.45 46,493.73 - 58,705.18
25,129.90 46,493.73 - 71,623.63
* The above disclosure has been made as per the contractual due dates of the borrowings, however, due to put
option available to the holder ( Note 15), the same has been presented as current maturity in the financial statements.

B. 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.
C. 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 optimise the cash return on instruments while ensuring sufficient liquidity to meet its
liabilities.
D. 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.
NOTE 49. 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 maximise the shareholder value.
The Company manages its capital so as to safeguard its ability to continue as a going concern and to optimise
returns to shareholders. The capital structure of the Company is based on management’s judgement of its strategic
and day-to-day needs with a focus on total equity so as to maintain investor, creditors and market confidence.

The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt is
calculated as borrowing less cash and cash equivalent and other bank balances and mutual funds investments.
Particulars March 31, 2017 March 31, 2016 April 01, 2015
Borrowings 44,919.04 40,000.00 51,500.00
Less: Cash and cash equivalents, other bank balances (10,954.21) (12,242.51) (23,770.29)
and mutual fund investments (Note 11,12a and 12b)
Net debt (A) 33,964.83 27,757.49 27,729.71
Equity 65,364.64 47,213.57 55,627.10
Capital and Net Debt (B) 99,329.47 74,971.06 83,356.81
Gearing ratio (A/B) 34% 37% 33%
No changes were made in the objectives, policies or processes for managing capital during the years ended
31 March 2017 and 31 March 2016.
NOTE 50. First-time adoption of Ind AS

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 liabilites 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 recognised 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).

Reconciliation of equity as at April 1, 2015 ( date of transition to Ind AS)
Foot Indian GAAP JCPML Merger Ind AS IND AS

Notes Jyothy Jyothy Adjustment Adjustments
Laboratories Consumer (Refer Note 43)
Limited Products
Marketing
Limited
(Note 43)
Assets
Non-Current Assets
Property, plant and 25,143.90 680.69 - - 25,824.59
equipment
Capital work in progress 536.33 117.30 - - 653.63
Goodwill 10,287.69 - - - 10,287.69
Other Intangible assets 21,600.90 - - - 21,600.90
Investment in subsidiaries 10,3 9,304.99 - (497.00) (8,147.97) 660.02
Financial assets
Investments 10 15,002.59 - - (2,314.00) 12,688.59
Loans 43,893.03 9.50 (43,349.83) - 552.70
Other financial assets 591.28 3.11 - - 594.39
Income Tax assets ( net ) 8,250.63 16.76 - - 8,267.39
Other assets 7,619.60 254.19 - - 7,873.79
1,42,230.94 1,081.55 (43,846.83) (10,461.97) 89,003.69
Current assets
Inventories 18,390.72 218.30 - - 18,609.02
Financial assets
Investments 1 16,450.00 - - 250.33 16,700.33
Trade receivables 5,091.46 610.71 (415.39) - 5,286.78
Cash and cash equivalent 2,154.68 145.63 - - 2,300.31
Other bank balances 4,371.13 398.52 - - 4,769.65
Other assets 2,739.87 37.36 - - 2,777.23
49,412.05 1,416.56 (415.39) 250.33 50,663.55
Total Assets 1,91,642.99 2,498.11 (44,262.22) (10,211.64) 1,39,667.24

Equity
Equity Share Capital 1,810.23 1,491.00 (1,491.00) - 1,810.23
Other Equity 1,2,4,6,8,9, 94,360.11 (43,667.88) 994.00 2,130.64 53,816.87
10,11
Total equity 96,170.34 (42,176.88) (497.00) 2,130.64 55,627.10
Non-Current liabilities
Borrowings 40,000.00 - - - 40,000.00
Other financial liabilities 2 14,795.90 - - (8,586.36) 6,209.54
Provisions 1,269.79 16.87 - - 1,286.66
Deferred tax liabilities (net) 6 - - - 4,877.02 4,877.02
56,065.69 16.87 - (3,709.34) 52,373.22
Current liabilities
Borrowings - 43,349.83 (43,349.83) - -
Trade payables 12,815.82 518.02 (415.39) - 12,918.45
Other financial liabilities 3 12,413.55 - - 82.09 12,495.64
Other liabilities 2,736.43 247.64 - - 2,984.07
Provisions 4 11,066.28 542.63 - (8,715.03) 2,893.88
Tax liabilities (net) 374.88 - - - 374.88
39,406.96 44,658.12 (43,765.22) (8,632.94) 31,666.92
Total liabilities 95,472.65 44,674.99 (43,765.22) (12,342.28) 84,040.14
Total equity and liabilities 1,91,642.99 2,498.11 (44,262.22) (10,211.64) 1,39,667.24

Reconciliation of equity as at March 31, 2016

Limited Products
Marketing
Limited
(Note 43)
Assets
Non-Current Assets
Property, plant and 24,101.62 840.79 - - 24,942.41
equipment
Capital work in progress 501.01 51.17 - - 552.18
Goodwill 10,287.69 - - - 10,287.69
Other Intangible assets 13 17,096.44 - - 1,433.94 18,530.38
Intangible asset under 240.00 - - - 240.00
development
Investment in subsidiaries 10,3 9,310.19 - (497.00) (8,147.97) 665.22
Financial assets
Investments 10 15,002.59 - - (1,914.00) 13,088.59
Loans 14 47,877.29 11.98 (47,250.31) (62.75) 576.21
Income Tax assets ( net ) 12,089.91 17.01 - - 12,106.92
Other assets 9,909.81 242.68 - - 10,152.49
1,46,741.18 1,171.43 (47,747.31) (8,690.78) 91,474.52
Current assets
Inventories 18,147.99 223.38 - - 18,371.37
Financial assets
Investments 1 6,624.27 - - 130.52 6,754.79
Trade receivables 8,379.23 494.39 - - 8,873.62
Cash and cash 1,457.25 125.11 - - 1,582.36
equivalent
Other bank balances 3,480.04 425.32 - - 3,905.36
Other assets 14 2,056.80 59.08 (22.38) 62.75 2,156.25
40,385.27 1,328.01 (22.38) 193.27 41,884.17
Total Assets 1,87,126.45 2,499.44 (47,769.69) (8,497.51) 1,33,358.69

Equity
Equity Share Capital 1,811.20 1,491.00 (1,491.00) - 1,811.20
Other Equity 1,2,3,4,6,8, 1,01,446.76 (47,273.96) 994.00 (9,764.43) 45,402.37
9,10,11,13,
14
Total Equity 1,03,257.96 (45,782.96) (497.00) (9,764.43) 47,213.57
Non-Current liabilities
Provisions 1,632.60 10.88 - - 1,643.48
Deferred tax liabilities (net) 6 2,453.11 - - 6,820.57 9,273.68
4,085.71 10.88 - 6,820.57 10,917.16
Current liabilities
Borrowings - 47,250.31 (47,250.31) - -
Trade payables 15,508.02 154.03 - - 15,662.05
Other financial 2,3 55,144.86 - - (3,373.73) 51,771.13
liabilities
Other liabilities 4,030.71 321.51 (22.38) - 4,329.84
Provisions 4 4,564.71 545.67 - (2,179.92) 2,930.46
Tax liabilities (net) 534.48 - - - 534.48
79,782.78 48,271.52 (47,272.69) (5,553.65) 75,227.96
Total liabilities 83,868.49 48,282.40 (47,272.69) 1,266.92 86,145.12
Total equity and liabilities 1,87,126.45 2,499.44 (47,769.69) (8,497.51) 1,33,358.69

Reconciliation of Profit or loss for the year ended March 31, 2016

Limited Products
Marketing
Limited
(Note 43)
Income
Revenue from operations 7 1,57,537.01 7,147.19 (5,136.80) 1,342.88 1,60,890.28
Other income 1,10 952.02 - (57.78) 280.20 1,174.44
Finance income 3, 14 4,701.81 37.20 (4,335.36) 29.84 433.49
Total income (I) 1,63,190.84 7,184.39 (9,529.94) 1,652.92 1,62,498.21
Expenses
Cost of raw material and 48,640.52 278.40 - - 48,918.92
components consumed
Purchase of traded goods 7 30,712.40 4,518.59 (5,133.70) 3,738.21 33,835.50
(Increase)/ decrease in 115.87 (49.46) - - 66.41
inventories of finished
goods, work-in- progress
and traded goods
Excise Duty expense 7 - - - 6,675.99 6,675.99
Employee benefits expense 5 14,109.79 168.10 - (93.33) 14,184.56
Employee stock option 8 1,750.26 - - (122.43) 1,627.83
expenses
Depreciation and 13 6,793.99 60.82 - (1,433.94) 5,420.87
amortization expense
Finance costs 2, 11 485.56 4,335.36 (4,335.36) 5,160.38 5,645.94
Other expenses 7, 14 40,434.07 1,478.72 (60.88) (9,071.35) 32,780.56
Share of (profit)/loss in 7.30 - - - 7.30
partnership firm
Total expense (II) 1,43,049.76 10,790.53 (9,529.94) 4,853.53 1,49,163.88
Profit/(loss) before tax (I-II) 20,141.08 (3,606.14) - (3,200.61) 13,334.33
Income tax
Current tax (MAT) 4,312.00 - - - 4,312.00
Less: MAT credit (2,860.00) - - - (2,860.00)
entitlement
Deferred tax expense 6 2,453.12 - - 1,977.17 4,430.29
Total Income tax 3,905.12 - - 1,977.17 5,882.29
Profit for the year 16,235.96 (3,606.14) - (5,177.78) 7,452.04
attributable to equity
shareholders (A)
Other comprehensive
Income not to be
reclassified to profit
or loss in subsequent
periods
Re-measurement gains/ 5 - - - (93.33) (93.33)
(losses) on defined benefit
plans
Income tax effect 5 - - - 33.64 33.64
- - - (59.69) (59.69)
Other comprehensive - - - (59.69) (59.69)
income for the year net of
tax , attributable to equity
shareholders (B)
Total comprehensive 16,235.96 (3,606.14) - (5,237.47) 7,392.35
income for the year net of
tax, attributable to equity
shareholders (A+B)

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:-
1 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.
2 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
amortised cost. The Company has retrospectively applied the effective interest method (EIM) and arrived at
amortised 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 amortised 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 recognised finance cost of `5,160.38 in the profit and loss.
3 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 recognised financial guarantee obligation
at fair value of `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 amortised cost has been taken to the
profit or loss.
4 Proposed dividend
Under Indian GAAP, proposed dividends including dividend distribution tax are recognised as a liability in
the period to which they relate, irrespective of when they are declared. Under IND AS, a proposed dividend
is recognised 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 `8,715.02 for the year ended on March 31, 2015 recorded for dividend has been derecognised against
retained earnings on April 1, 2015. The proposed dividend for the year ended on March 31, 2016 of ` 2,179.92
recognised under Indian GAAP was reduced from other payables with a corresponding impact in the retained
earnings.
5 Defined benefit obligation
Both under Indian GAAP and IND AS, the Company recognised 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, premeasurements comprising of actuarial gains and losses on the net
defined benefit liability and the return on plan assets are recognised immediately in the balance sheet with
a corresponding debit or credit to retained earnings through OCI. Thus, the employee benefits expense is
reduced by `93.33 and is recognised in other comprehensive income (net of tax of `33.64) for the year ended
March 31, 2016.
6 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 recognised 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.
7 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 ` 5,965.53 with a corresponding increase in excise
duty expense.
Further, under Indian GAAP, certain sale promotion expenses amounting was recognised 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 `8,360.94 with corresponding increase in purchase of traded goods of `3,738.21
and decrease in sale of goods by `4,622.66.
8 Share-based payments
Under Indian GAAP, the Company recognised 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 recognised over the vesting period. Accordingly, an expense of `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.
9 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.
10 Investment in subsidiaries and optionally convertible redeemable preference share
Under Indian GAAP, investment in subsidiaries are measured at cost less any allowance for dimunition, 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 `8,147.96 to reflect the fair values and the corresponding impact
has been considered in retained earnings. The Company has not recognised 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 utilised.
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 `2,314.00 has been considered on
the transition date. The Company has not recognised 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 utilised. For the year ended March 31, 2016, the Company has recognised a fair value gain
of `400.
11 Borrowings
Under Indian GAAP, transaction costs incurred in connection with borrowings are amortised 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.
12 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.
13 Goodwill amortisation
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 amortised. Accordingly, the goodwill amortised in Indian GAAP
for the year ended March 31, 2016 has been reversed.

14 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 amortised cost at the effective interest rate and the difference
is recognised as deferred lease asset. The carrying amount of the asset increases in each period to reflect
the passage of time which is recognised 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.
15 Statement of cash flows
The transition from Indian GAAP to Ind AS has not had a material impact on the statement of cash
flows.
16 Previous GAAP figures have been reclassified / regrouped wherever necessary to confirm with financial
statements prepared under IND AS.
NOTE 51. 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.
a) 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.
b) 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.
Signatures to Notes 1 to 51
Company Secretary

Date: May 18, 2017 Date: May 18, 2017

Independent Auditor’s Report

To The Members of
Report on the Consolidated Ind AS financial statements Auditor’s Responsibility

Our responsibility is to express an opinion on these
We have audited the accompanying consolidated Ind consolidated Ind AS financial statements based on our
AS financial statements of Jyothy Laboratories Limited audit. While conducting the audit, we have taken into
(hereinafter referred to as “the Holding Company”) account the provisions of the Act, the accounting and
and its subsidiaries (the Holding Company and its auditing standards and matters which are required to
subsidiaries together referred to as “the Group”), be included in the audit report under the provisions of
comprising of the consolidated Balance Sheet as at the Act and the Rules made thereunder. We conducted
March 31, 2017, the consolidated Statement of Profit our audit in accordance with the Standards on Auditing,
and Loss including other comprehensive income, the issued by the Institute of Chartered Accountants of
consolidated Cash Flow Statement, the consolidated India, as specified under Section 143(10) of the Act.
Statement of Changes in Equity for the year then ended, Those Standards require that we comply with ethical
and a summary of significant accounting policies and requirements and plan and perform the audit to obtain
other explanatory information (hereinafter referred to reasonable assurance about whether the financial
as “the consolidated Ind AS financial statements”). statements are free from material misstatement.
An audit involves performing procedures to obtain
Management’s Responsibility for the Consolidated audit evidence about the amounts and disclosures in
Ind AS Financial Statements the consolidated financial statements. The procedures
The Holding Company’s Board of Directors is selected depend on the auditor’s judgment, including
responsible for the preparation of these consolidated the assessment of the risks of material misstatement
Ind AS financial statements in terms of the requirement of the consolidated financial statements, whether due
of the Companies Act, 2013 (“the Act”) that give a true to fraud or error. In making those risk assessments,
and fair view of the consolidated financial position, the auditor considers internal financial control
consolidated financial performance including other relevant to the Holding Company’s preparation of the
comprehensive income, consolidated cash flows consolidated Ind AS financial statements that give a
and consolidated statement of changes in equity of true and fair view in order to design audit procedures
the Group in accordance with accounting principles that are appropriate in the circumstances. An audit also
generally accepted in India, including the Accounting includes evaluating the appropriateness of accounting
Standards specified under Section 133 of the Act, read policies used and the reasonableness of the accounting
with the Companies (Indian Accounting Standard) estimates made by the Holding Company’s Board of
Rules, 2015, as amended. The respective Board of Directors, as well as evaluating the overall presentation
Directors of the companies included in the Group are of the consolidated financial statements. We believe
responsible for maintenance of adequate accounting that the audit evidence obtained by us and the audit
records in accordance with the provisions of the Act evidence obtained by the other auditors in terms
for safeguarding of the assets of the Group and for of their reports referred to in sub-paragraph (a) of
preventing and detecting frauds and other irregularities; the Other Matters paragraph below, is sufficient and
the selection and application of appropriate appropriate to provide a basis for our audit opinion on
accounting policies; making judgments and estimates the consolidated financial statements.
that are reasonable and prudent; and the design,
implementation and maintenance of adequate internal Opinion
financial controls, that were operating effectively In our opinion and to the best of our information and
for ensuring the accuracy and completeness of the according to the explanations given to us and based
accounting records, relevant to the preparation and on the consideration of reports of other auditors
presentation of the financial statements that give a true on separate financial statements and on the other
and fair view and are free from material misstatement, financial information of the subsidiaries, the aforesaid
whether due to fraud or error, which have been used consolidated Ind AS financial statements give the
for the purpose of preparation of the consolidated Ind information required by the Act in the manner so
AS financial statements by the Directors of the Holding required and give a true and fair view in conformity
Company, as aforesaid. with the accounting principles generally accepted in

India of the consolidated state of affairs of the Group Section 139 of the Act, of its subsidiary companies,
as at March 31, 2017, their consolidated profit including incorporated in India, none of the directors of
other comprehensive income, their consolidated cash the Group’s companies, incorporated in India
flows and consolidated statement of changes in equity is disqualified as on March 31, 2017 from being
for the year ended on that date. appointed as a director in terms of Section 164 (2)
of the Act;
Emphasis of Matter
With respect to the adequacy and the operating
Without qualifying our report and as more fully
described in Note 35 to the financial statements, we effectiveness of the internal financial controls over
draw attention to managerial remuneration paid/ financial reporting of the Holding Company and
provided by the Company for the year ended March its subsidiary companies incorporated in India,
31, 2017 in excess of the limits prescribed under the refer to our separate report in “Annexure 1” to this
Companies Act, 2013. As informed to us, the Company report;
has filed a revised application with the Central (f) With respect to the other matters to be included
government for approval of such excess remuneration. in the Auditor’s Report in accordance with Rule
Pending approval, no adjustments are considered 11 of the Companies (Audit and Auditors) Rules,
necessary in these consolidated Ind AS financial 2014, in our opinion and to the best of our
statements. information and according to the explanations
given to us and based on the consideration of the
Report on Other Legal and Regulatory Requirements report of the other auditors on separate financial
As required by section 143 (3) of the Act, based on our statements as also the other financial information
audit and on the consideration of report of the other
of the subsidiaries as noted in the ‘Other matter’
auditors on separate financial statements and the
paragraph:
other financial information of subsidiaries, as noted in
the ‘other matter’ paragraph we report, to the extent i. The consolidated Ind AS financial statements
applicable, that: disclose the impact of pending litigations
on its consolidated financial position of the
(a) We / the other auditors whose reports we have
Group – Refer Note 38 to the consolidated Ind
relied upon, have sought and obtained all the
AS financial statements;
information and explanations which to the best of
our knowledge and belief were necessary for the ii. The Group did not have any material
purpose of our audit of the aforesaid consolidated foreseeable losses in long-term contracts
Ind AS financial statements; including derivative contracts during the year
ended March 31, 2017.
(b) In our opinion proper books of account as required
by law relating to preparation of the aforesaid iii. There were no amounts which were required
consolidation of the financial statements have to be transferred to the Investor Education and
been kept so far as it appears from our examination Protection Fund by the Holding Company and
of those books and reports of the other auditors; its subsidiaries incorporated in India during the
(c) The consolidated Balance Sheet, consolidated year ended March 31, 2017.
Statement of Profit and Loss including the iv. The Holding Company and subsidiaries
Statement of Other Comprehensive Income, incorporated in India have provided requisite
the consolidated Cash Flow Statement and disclosures in Note 45 to these consolidated
consolidated Statement of Changes in Equity dealt Ind AS financial statements as to the holding
with by this Report are in agreement with the of Specified Bank Notes on November 8, 2016
books of account maintained for the purpose of and December 30, 2016 as well as dealings in
the consolidated Ind AS financial statements; Specified Bank Notes during the period from
(d) In our opinion, the aforesaid consolidated Ind AS November 8, 2016 to December 30, 2016.
financial statements comply with the Accounting Based on our audit procedures and relying
Standards specified under section 133 of the Act, on the management representation of the
read with the Companies (Indian Accounting Holding Company regarding the holding
Standard) Rules, 2015, as amended; and nature of cash transactions, including
(e) On the basis of the written representations received Specified Bank Notes, we report that these
from the directors of the Holding Company as on disclosures are in accordance with the books
March 31, 2017 taken on record by the Board of of accounts maintained by the Group and as
Directors of the Holding Company and the reports produced to us by the Management of the
of the statutory auditors who are appointed under Holding Company.

Other Matter generally accepted in the respective country to

(a) We did not audit the financial statements and other accounting principles generally accepted in India. We
financial information, in respect of four subsidiaries, have audited these conversion adjustments made by
whose Ind AS financial statements include total assets the Company’s management. Our opinion in so far as
of `1,938 Lacs and net assets of Rs 852 Lacs as at it relates to the balances and affairs of such subsidiary
March 31, 2017, and total revenues of Rs 1,824 lacs and located outside India is based on the report of other
net cash inflows of ` 63 Lacs for the year ended on auditors and the conversion adjustments prepared by
that date. These financial statement and other financial the management of the Company and audited by us.
information have been audited by other auditors, Our above opinion on the consolidated Ind AS
which financial statements, other financial information financial statements, and our report on Other Legal
and auditor’s reports have been furnished to us by and Regulatory Requirements above, is not modified
the management. Our opinion on the consolidated in respect of the above matters with respect to our
financial statements, in so far as it relates to the reliance on the work done and the reports of the
amounts and disclosures included in respect of these other auditors and the financial statements and other
subsidiaries, and our report in terms of sub-sections financial information certified by the Management
(3) of Section 143 of the Act, in so far as it relates to the
aforesaid subsidiaries, is based solely on the reports of
such other auditors.
One of the subsidiary is located outside India whose
financial statements and other financial information Chartered Accountants
have been prepared in accordance with accounting ICAI Firm Registration Number: 324982E/E300003
principles generally accepted in the respective country
and which have been audited by other auditors under
generally accepted auditing standards applicable in the
respective country. The Company’s management has per VIKRAM MEHTA
converted the financial statements of such subsidiary Place : Mumbai Partner
located outside India from accounting principles Date: May 18, 2017 Membership No: 105938

Annexure 1 referred to in our report of even
date on the consolidated IND AS financial
statements
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143
of the Companies Act, 2013 (“the Act”)
To The Members of
In conjunction with our audit of the consolidated of internal financial controls over internal reporting.
financial statements of Jyothy Laboratories Limited Those Standards and the Guidance Note require that
as of and for the year ended March 31, 2017, we have we comply with ethical requirements and plan and
audited the internal financial controls over financial perform the audit to obtain reasonable assurance
reporting of Jyothy Laboratories Limited (hereinafter about whether adequate internal financial controls over
referred to as the “Holding Company”) and its subsidiary financial reporting was established and maintained
companies which are companies incorporated in India, and if such controls operated effectively in all material
as of that date. respects.
Our audit involves performing procedures to obtain
Management’s Responsibility for Internal Financial
audit evidence about the adequacy of the internal
Controls
financial controls system over financial reporting and
The respective Board of Directors of the Holding their operating effectiveness. Our audit of internal
Company and its subsidiary companies, which are financial controls over financial reporting included
companies incorporated in India, are responsible obtaining an understanding of internal financial
for establishing and maintaining internal financial controls over financial reporting, assessing the risk that
controls based on the internal control over financial a material weakness exists, and testing and evaluating
reporting criteria established by the Holding Company the design and operating effectiveness of internal
considering the essential components of internal control based on the assessed risk. The procedures
control stated in the Guidance Note on Audit of Internal selected depend on the auditor’s judgement, including
Financial Controls Over Financial Reporting issued by
the assessment of the risks of material misstatement of
the Institute of Chartered Accountants of India. These
the financial statements, whether due to fraud or error.
responsibilities include the design, implementation
and maintenance of adequate internal financial We believe that the audit evidence we have obtained
controls that were operating effectively for ensuring and the audit evidence obtained by the other auditors
the orderly and efficient conduct of its business, in terms of their reports referred to in the Other
including adherence to the respective company’s Matters paragraph below, is sufficient and appropriate
policies, the safeguarding of its assets, the prevention to provide a basis for our audit opinion on the internal
and detection of frauds and errors, the accuracy and financial controls system over financial reporting.
completeness of the accounting records, and the
Meaning of Internal Financial Controls Over Financial
timely preparation of reliable financial information, as
Reporting
required under the Act.
A company’s internal financial control over financial
Auditor’s Responsibility reporting is a process designed to provide reasonable
Our responsibility is to express an opinion on the assurance regarding the reliability of financial reporting
company’s internal financial controls over financial and the preparation of financial statements for external
reporting based on our audit. We conducted our audit purposes in accordance with generally accepted
in accordance with the Guidance Note on Audit of accounting principles. A company’s internal financial
Internal Financial Controls Over Financial Reporting control over financial reporting includes those policies
(the “Guidance Note”) and the Standards on Auditing, and procedures that (1) pertain to the maintenance of
both, issued by Institute of Chartered Accountants records that, in reasonable detail, accurately and fairly
of India, and deemed to be prescribed under section reflect the transactions and dispositions of the assets
143(10) of the Act, to the extent applicable to an audit of the company; (2) provide reasonable assurance
that transactions are recorded as necessary to permit

preparation of financial statements in accordance issued by the Institute of Chartered Accountants of

with generally accepted accounting principles, and India.
that receipts and expenditures of the company are
being made only in accordance with authorisations of Other Matters
management and directors of the company; and (3) Our report under Section 143(3)(i) of the Act on the
provide reasonable assurance regarding prevention or adequacy and operating effectiveness of the internal
timely detection of unauthorised acquisition, use, or financial controls over financial reporting of the
disposition of the company’s assets that could have a Holding Company, insofar as it relates to 2 subsidiary
material effect on the financial statements. companies, which are companies incorporated in
India, is based on the corresponding reports of the
Inherent Limitations of Internal Financial Controls auditors of such subsidiary companies incorporated in
Over Financial Reporting India.
Because of the inherent limitations of internal We also have audited, in accordance with the
financial controls over financial reporting, including Standards on Auditing issued by the Institute of
the possibility of collusion or improper management Chartered Accountants of India as specified under
override of controls, material misstatements due to section 143(10) of the Act, the consolidated financial
error or fraud may occur and not be detected. Also, statements of the Holding Company, which comprise
projections of any evaluation of the internal financial the Consolidated Balance Sheet as at March 31, 2017,
controls over financial reporting to future periods are and the Consolidated Statement of Profit and Loss
subject to the risk that the internal financial control and Consolidated Cash Flow Statement for the year
over financial reporting may become inadequate then ended, and a summary of significant accounting
because of changes in conditions, or that the degree policies and other explanatory information, and our
of compliance with the policies or procedures may report dated May 18, 2017 expressed an unqualified
deteriorate. opinion thereon.
Opinion
In our opinion, the Holding Company and its subsidiary
companies, which are companies incorporated in For S R B C & CO LLP
India, have, maintained in all material respects, an Chartered Accountants
adequate internal financial controls system over ICAI Firm Registration Number: 324982E/E300003
financial reporting and such internal financial controls
over financial reporting were operating effectively as
at March 31, 2017, based on the internal control over
financial reporting criteria established by the Holding per VIKRAM MEHTA
Company considering the essential components of Place : Mumbai Partner
internal control stated in the Guidance Note on Audit
Date: May 18, 2017 Membership No: 105938
of Internal Financial Controls Over Financial Reporting

Consolidated Balance Sheet as at 31st March, 2017
(` in Lacs)
Note As at As at As at
March 31, 2017 March 31,2016 April 1, 2015
Assets
Non-current assets
Property, plant and equipment 4a 30,571.71 27,794.81 28,379.57
Capital work in progress 877.01 552.18 1,611.13
Goodwill 4b 78,633.19 78,633.19 78,633.19
Other Intangible assets 4b 497.45 349.74 397.82
Intangible asset under development - 240.00 -
Financial assets
Investments 5 2.59 2.59 2.59
Loans 6 901.68 804.18 815.32
Trade receivables 7 569.27 - -
Income tax assets (net) 9 14,413.76 12,349.99 8,472.95
Deferred tax assets (net) 19 - - 1,347.75
Other assets 10 10,786.90 10,278.62 7,997.66
1,37,890.59 1,31,345.67 1,28,280.92
Current assets
Inventories 11 19,637.23 18,508.15 18,814.97
Financial assets
Investments 12 2,845.83 8,589.15 19,497.57
Loans 6 78.84 217.58 162.83
Trade receivables 7 11,711.74 9,411.03 5,741.90
Cash and cash equivalent 13a 4,011.66 2,367.39 2,575.06
Other bank balances 13b 6,332.42 3,752.44 4,888.69
Other assets 10 3,234.38 2,246.50 2,922.96
48,110.97 45,611.25 55,032.14
Total assets 1,86,001.56 1,76,956.92 1,83,313.06
Equity
Equity Share Capital 14 1,816.84 1,811.20 1,810.23
Other Equity * 1,07,084.26 88,336.59 96,426.13
Equity attributable to equity holders of the 1,08,901.10 90,147.79 98,236.36
parent
Non-controlling interests * (665.15) (265.87) 143.74
Total equity 1,08,235.95 89,881.92 98,380.10
Borrowings 16 552.44 727.44 44,902.44
Other financial liabilities 17 - - 6,297.16
Provisions 18 2,296.08 1,776.65 1,370.42
Deferred tax liabilities (net) 19 691.96 4,092.88 -
3,540.48 6,596.97 52,570.02
Current liabilities
Borrowings 16 4,919.04 - -
Trade payables 20 14,898.05 16,115.14 13,246.79
Other financial liabilities 17 46,424.90 56,437.27 12,725.75
Provisions 18 3,218.94 3,024.13 2,992.51
Tax liabilities (net) 21 299.01 534.48 374.88
Other liabilities 22 4,465.19 4,367.01 3,023.01
74,225.13 80,478.03 32,362.94
Total equity and liabilities 1,86,001.56 1,76,956.92 1,83,313.06
* Refer Statement of Changes In Equity

Chartered Accountants Jyothy Laboratories Limited
ICAI Firm Registration No. 324982E/E300003
M.P. Ramachandran K.Ullas Kamath
Company Secretary
Date: May 18, 2017 Date: May 18, 2017

Consolidated Statement of Profit and Loss for the year ended 31st March, 2017
(` in Lacs)
Note April 1, 2016 to April 1, 2015 to
March 31, 2017 March 31, 2016
Income
Revenue from operations 23 1,74,918.49 1,65,951.42
Other income 24 350.64 994.36
Finance income 25 717.71 436.89
Total income (I) 1,75,986.84 1,67,382.67
Expenses
Cost of raw material and components consumed 26 52,424.54 49,662.91
Purchase of traded goods 37,592.57 33,824.54
(Increase)/ decrease in inventories of finished goods, work-in- 27 (605.51) 115.30
progress and traded goods
Excise duty expense 6,619.41 6,675.98
Employee benefits expense 28 17,288.43 16,475.99
Employee stock option expenses 28 236.30 1,627.83
Depreciation and amortisation expense 29 3,005.55 3,140.15
Finance costs 30 5,646.65 6,183.90
Other expenses 31 35,913.83 35,365.46
Total Expense ( II ) 1,58,121.77 1,53,072.06
Profit before tax (I - II) 17,865.07 14,310.61
Income tax 32
Current tax (MAT) 3,435.30 4,304.60
Deferred tax expense / (income) (3,339.80) 5,474.27
Total Income tax (2,550.19) 6,928.62
Profit for the year (A) 20,415.26 7,381.99
Other comprehensive income not to be reclassified to profit or loss in
subsequent periods
Re-measurement gains/ (losses) on defined benefit plans (184.37) (134.22)
Income tax effect 32 61.12 33.64
Other comprehensive income for the year, net of tax (B) (123.25) (100.58)
Total comprehensive income for the year, net of tax (A+B) 20,292.01 7,281.41
Non controlling interest 20,691.29 7,717.31
Profit after tax 20,691.29 7,717.31
Profit for the year 20,415.26 7,381.99
Attributable to :
Equity holders of the parent 20,812.62 7,807.74
Non-controlling interests (397.36) (425.75)
Total comprehensive income 20,292.01 7,281.41
Attributable to :
Equity holders of the parent 20,691.29 7,717.31
Non-controlling interests (399.28) (435.90)
Earnings per share (EPS) 46
Basic (`) 11.24 4.08
Diluted (`) 11.24 4.02
Nominal value per share (`) 1.00 1.00

Company Secretary
Date: May 18, 2017 Date: May 18, 2017

Consolidated Statement of Changes in Equity for the year ended 31st March, 2017
(` in Lacs)
A. Equity share capital As at As at As at
March 31, 2017 March 31,2016 April 1,2015
Equity shares of ` 1 each issued, subscribed and fully
paid
At the beginning of the period 1,811.20 1,810.23 1,810.23
Issued of share capital 5.64 0.97 -
At the end of the period 1,816.84 1,811.21 1,810.23
For further details, Refer Note 14
B. Other Equity (` in Lacs)

Attributable to equity holders of the Parent
Particulars Retained Capital Securities Debenture General Employee Total Non Total
earnings reserves premium redemption reserves stock option Controlling Equity
reserve outstanding Interest
(DRR) *
As at April 1, 2015 (3,954.67) 5,480.32 47,674.95 11,995.02 32,539.08 2,691.43 96,426.13 143.74 96,569.87
Profit for the year 7,807.74 - - - - - 7,807.74 (425.75) 7,381.99
Other (90.43) - - - - - (90.43) (10.15) (100.58)
comprehensive
income
Total 7,717.31 - - - - - 7,717.31 (435.90) 7,281.41
comprehensive
income
Compensation - - - - - 1,627.83 1,627.83 - 1,627.83
on stock option
granted / cancelled
(Note 40)
Exercise of share - - 180.54 - - (180.54) - - -
options (Note 40)
Cash dividend (14,485.73) - - - - - (14,485.73) - (14,485.73)
(Note 15)
Dividend (2,948.95) - - - - - (2,948.95) - (2,948.95)
Distribution Tax on
cash dividend
(Note 15)
Transfer to DRR (4,560.01) - - 4,560.01 - - - - -
Transfer from DRR - - - (2,875.00) 2,875.00 - - - -
Additional - - - - - - - 26.29 26.29
investment by non
controlling interest
As at March 31, (18,232.05) 5,480.32 47,855.49 13,680.03 35,414.08 4,138.72 88,336.59 (265.87) 88,070.72
2016
Profit for the year 20,812.62 - - - - - 20,812.62 (397.36) 20,415.26
Other (121.33) - - - - - (121.33) (1.92) (123.25)
comprehensive
income
Total 20,691.29 - - - - - 20,691.29 (399.28) 20,292.01
comprehensive
income
Compensation - - - - - 236.30 236.30 - 236.30
on stock option
granted / cancelled
(Note 40)

Consolidated Statement of Changes in Equity for the year ended 31st March, 2017
B. Other Equity (contd.) (` in Lacs)
Attributable to equity holders of the Parent
Particulars Retained Capital Securities Debenture General Employee Total Non Total
earnings reserves premium redemption reserves stock option Controlling Equity
reserve outstanding Interest
(DRR) *
Exercise of share - - 981.32 - - (981.32) - - -
options (Note 40)
Transfer from DRR 13,680.03 - - (13,680.03) - - - - -
Transfer to DRR (6,250.00) - - 6,250.00 - - - - -
Cash dividend (1,811.20) - - - - - (1,811.20) - (1,811.20)
(Note 15)
Dividend (368.72) - - - - - (368.72) - (368.72)
Distribution Tax on
cash dividend
(Note 15)
As at March 31, 7,709.35 5,480.32 48,836.81 6,250.00 35,414.08 3,393.70 1,07,084.26 (665.15) 1,06,419.11
2017
* The Company has issued redeemable non-convertible debentures.Accordingly, the Companies (Share capital
and Debentures) Rules, 2014 as amended, require the company to create DRR out of profits of the company
available for payment of dividend. DRR is required to be created for an amount which is equal to 25% of the value
of debentures outstanding over the life of debentures.

Company Secretary
Date: May 18, 2017 Date: May 18, 2017

Consolidated Statement of Cash Flows for the year ended 31st March, 2017
(` in Lacs)
March 31, 2017 March 31, 2016
A. CASH FLOWS PROVIDED BY/(USED IN) OPERATING ACTIVITIES:
Profit before tax 17,865.07 14,310.61
Adjustments to reconcile profit before tax to net cash flows :
Depreciation, amortisation and impairment 3,005.55 3,140.15
Loss / (Profit) on sale of fixed assets 10.82 (48.90)
Gain on financial assets fair valued through profit or loss (109.48) (245.15)
Profit on sale of current investments (125.92) (638.78)
Finance costs 5,646.65 6,183.90
Finance income (717.71) (436.89)
Foreign exchange fluctuation gain (net) (6.42) (14.47)
Provision for doubtful debts and advances 90.53 98.58
Employee stock option expenses 236.30 1,627.83
Operating profit before working capital changes 25,982.99 24,091.96
Movements in working capital :-
Increase/ (decrease) in trade payables (1,207.25) 2,868.35
Increase / (decrease) in provisions 529.87 303.63
Increase/ (decrease) in other liabilities 98.18 1,419.84
Increase/ (decrease) in other financial liabilities (26.35) 56.50
Decrease / (increase) in trade receivables (2,908.93) (3,678.57)
Decrease / (increase) in inventories (1,129.08) 306.82
Decrease / (increase) in loans (13.76) (118.28)
Decrease / (increase) in other financial assets 118.76 92.49
Decrease / (increase) in other assets (2,023.21) (951.49)
Cash generated from operations 19,421.22 24,391.25
Taxes paid (net) (3,088.82) (5,171.79)
Net Cash (used in) / generated from operating activities ( A ) 16,332.40 19,219.46
B. CASH FLOWS PROVIDED BY/(USED IN) INVESTING ACTIVITIES:
Purchase of fixed assets including capital work-in-progress and capital (5,773.62) (2,816.63)
advances
Proceeds from sale of fixed assets 107.94 169.54
Proceeds from / (Investment in) fixed deposit (2,735.26) 1,233.47
Proceeds from sale of Mutual Fund 27,978.72 47,850.60
Investment in Mutual Fund (22,000.00) (36,058.25)
Interest income received 717.71 438.90
Net cash used in investing activities ( B ) (1,704.51) 10,817.63

Consolidated Statement of Cash Flows for the year ended 31st March, 2017 (contd.)
(` in Lacs)
March 31, 2017 March 31, 2016
C. CASH FLOWS PROVIDED BY/(USED IN) FINANCING ACTIVITIES:
Interest and finance charges paid (15,553.38) (982.35)
Proceeds from allotment of equity shares under ESOP Scheme 5.64 0.98
Repayment of Debentures and long term loans (40,175.00) (11,675.00)
Proceeds from issue of Debentures 40,000.00 -
Proceeds from short-term borrowings 4,919.04 -
Repayment of Deferred Payment Liability - (180.00)
Dividend paid (1,811.20) (14,485.73)
Dividend tax paid (368.72) (2,948.95)
Proceed from issue of shares by subsidiary - 26.29
Net cash (used in) /generated from financing activities ( C ) (12,983.62) (30,244.76)
Net increase / (decrease) in cash and cash equivalents (A+B+C) 1,644.27 (207.67)
Cash and cash equivalents at the beginning of the year 2,367.39 2,575.06
Cash and cash equivalents at the end of the year 4,011.66 2,367.39
Components of cash and cash equivalents
Cash in hand 28.73 37.83
Balance with scheduled banks - Current account 3,498.64 1,764.96
- Deposit account 377.80 425.32
Unclaimed dividend accounts * 106.49 139.28
Cash and cash equivalents considered for cash flows statement 4,011.66 2,367.39
*Not available for use by the management for any other purpose
Summary of significant accounting policies Note 3

Company Secretary
Date: May 18, 2017 Date: May 18, 2017

Notes to the consolidated financial statements
NOTE 1. Corporate information
Jyothy Laboratories Limited (‘the Company’) is a public company domiciled in India. Its shares are listed on two
stock exchanges in India. The registered office of the company is located at Ujala House , Ramkrishnan Mandir
Road, Kondivita, Andheri (E) Mumbai.
The Consolidated financials statement comprise the financial statements of Jyothy Laboratories Limited (‘the
Company’) and its subsidiaries hereinafter referred to as ‘the Group’. The Group is principally engaged in
manufacturing and marketing of fabric care, dishwashing, personal care, household insecticides products and
also provides laundry and dry cleaning services.
These Financial statements were authorised for issue in accordance with a resolution passed by the Board of
Directors on May 18, 2017.
NOTE 2. Basis of preparation
The consolidated financial statements of the Group have been prepared in accordance with Indian Accounting
Standards (Ind AS) notified, under the Companies (Indian Accounting Standards) Rules, 2015 as amended. For all
periods up to and including the year ended March 31, 2016, the Group has prepared these financial statements in
accordance with the accounting standards notified under section 133 of the Companies Act 2013, read together
with paragraph 7 of the Companies (Accounts) Rules 2014 (Indian GAAP). These financial statements for the
year ended March 31, 2017 are the first the Group has prepared in accordance with Ind AS. Refer note 54 for
information on how the Group adopted Ind AS.
The consolidated financial statements have been prepared on a historical cost basis, except for certain financial
assets which have been measured at fair value.
(Refer accounting policy regarding finanical instruments).
The consolidated financial statements are prepared in INR and all values are rounded to nearest lacs except where
otherwise indicated.
Basis of consolidation
Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the
investee and has the ability to affect those returns through its power over the investee. Specifically, the Group
controls an investee if and only if the Group has:
∞ Power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the
investee)
∞ Exposure, or rights, to variable returns from its involvement with the investee, and
∞ The ability to use its power over the investee to affect its returns
Generally, there is a presumption that a majority of voting rights result in control. To support this presumption
and when the Group has less than a majority of the voting or similar rights of an investee, the Group considers
all relevant facts and circumstances in assessing whether it has power over an investee, including:
∞ The contractual arrangement with the other vote holders of the investee
∞ Rights arising from other contractual arrangements
∞ The Group’s voting rights and potential voting rights
∞ The size of the group’s holding of voting rights relative to the size and dispersion of the holdings of the other
voting rights holders
The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are
changes to one or more of the three elements of control. Consolidation of a subsidiary begins when the Group
obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. Assets, liabilities,
income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated
financial statements from the date the Group gains control until the date the Group ceases to control the
subsidiary.
Consolidated financial statements are prepared using uniform accounting policies for like transactions and other
events in similar circumstances. If a member of the group uses accounting policies other than those adopted

Notes to the consolidated financial statements (contd.)

in the consolidated financial statements for like transactions and events in similar circumstances, appropriate
adjustments are made to that group member’s financial statements in preparing the consolidated financial
statements to ensure conformity with the group’s accounting policies.
The financial statements of all entities used for the purpose of consolidation are drawn up to same reporting date
as that of the parent company, i.e., year ended on 31 March.
The consolidated financial statements of the Group have been combined on a line-by-line basis by adding together
the book values of like items of assets, liabilities, income and expenses, after eliminating intra-group balances,
intra-group transactions and the unreliased profits / losses, unless cost / revenue cannot be recovered. Ind AS 12
Income Taxes applies to temporary differences that arise from the elimination of profits and losses resulting from
intragroup transactions.
The excess of the cost to the Group of its investment in subsidiaires, on the acquisition dates over and above
the Group’s share of equity in the subsidiaries is recognised as ‘Goodwill on Consolidation’ being an asset in the
consolidated financial statements. The said goodwill is not amortised, however, it is tested for impairment at each
balance sheet date and the impairment loss, if any, is provided for. On the other hand, where the share of equity
in subsidiaries as on the date of investment is in excess of the cost of investments of the Group, it is recognised as
‘Capital reserve’.
Non-controlling interests in the net assets of consolidated subsidiaries is identified and presented in the
consolidated Balance Sheet separately within equity. Non-controlling interests in the net assets of consolidated
subsidiaries consists of :- The amount of equity attributable to non-controlling interests at the date on which
investment in a subsidiary is made; and the non-controlling interests share of movements in equity since the date
parent subsidiary relationship came into existence.
Profit or loss and each component of other comprehensive income (OCI) are attributed to the equity holders of
the parent of the Group and to the non-controlling interests, even if this results in the non-controlling interests
having a deficit balance.
The Consolidated Financial Statements includes the financial statements of the following subsidiaries:
Name of the Company Country of Percentage of equity interest
incorporation March 31, 2017 March 31, 2016
(a) Direct Subsidiaries
1. Jyothy Fabricare Services Limited India 75.10 75.10
2. Jyothy Kallol Bangladesh Limited Bangladesh 75.00 75.00
3. Jyothy Consumer Products Marketing Ltd India Note 53 100.00
(b) Indirect Subsidiaries *
4. Snoways Laundrers and Drycleaners Pvt.Ltd (Note I) India 36.80 36.80
5. Four Seasons Dry Cleaning Co. Private Limited India 75.10 75.10
6. JFSL-JLL(JV) - partnership firm India 81.32 81.32
* Effective holding % of Company directly and indirectly through its subsidiaries.
Note :
I Jyothy Fabricare Services Limited has 49% share in Snoways Laundrers & Drycleaners Pvt. Ltd and has entered
into agreement which enable it to control the composition of the Board of Directors of the latter, making it a
subsidiary company of Jyothy Fabricare Services Limited.
NOTE 3. Summary of significant accounting policies
The significant accounting policies adopted by the Group, in respect of the consolidated financial statements
are as follows:
a. Current versus non-current classification
The Group presents assets and liabilities in the balance sheet based on current/ non-current classification.
An asset is treated as current when it is:
Expected to be realised or intended to be sold or consumed in normal operating cycle
∞ Held primarily for the purpose of trading

∞ Expected to be realised within twelve months after the reporting period, or
∞ Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least
twelve months after the reporting period
All other assets are classified as non-current.
A liability is current when:
∞ It is expected to be settled in normal operating cycle
∞ It is held primarily for the purpose of trading
∞ It is due to be settled within twelve months after the reporting period, or
∞ There is no unconditional right to defer the settlement of the liability for at least twelve months after
the reporting period
The Group classifies all other liabilities as non-current.
Deferred tax assets and liabilities are classified as non-current assets and liabilities.
The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and
cash equivalents. The Group has identified twelve months as its operating cycle.
b. Foreign currencies
The Group’s consolidated financial statements are presented in INR, which is also the parent company’s
functional currency. For each entity the group determines the functional currency and items included in the
financial statements of each entity are measured using that functional currency.
Transactions and balances
Transactions in foreign currencies are initially recorded by the Group at their functional currency spot rates
at the date the transaction first qualifies for recognition. However, for practical reasons, the Group uses an
average rate if the average approximates the actual rate at the date of the transaction
Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency
spot rates of exchange at the reporting date.
Exchange differences arising on settlement or translation of monetary items are recognised in profit or loss.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using
the exchange rates at the dates of the initial transactions.
Group Companies
On consolidation, the assets and liabilities of foreign subsidiary’s operation are translated into INR at the
rate of exchange prevailing at reporting date and their statement of profit or loss are translated at exchange
prevailing at date of transactions. For practical reasons, the Group uses an average rate to translate income
and expense item, If the average rate approximates the exchange rates at date of transactions. The exchange
differences arising on translation for consolidation are recognised in the consolidated statement of profit and
loss.
c. Fair value measurement
The Group measures financial instruments (refer Note 3p) at fair value at each balance sheet date.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date. The fair value measurement is based on
the presumption that the transaction to sell the asset or transfer the liability takes place either:
∞ In the principal market for the asset or liability, or
∞ In the absence of a principal market, in the most advantageous market for the asset or liability
The principal or the most advantageous market must be accessible by the Group.
The fair value of an asset or a liability is measured using the assumptions that market participants would use
when pricing the asset or liability, assuming that market participants act in their economic best interest.
The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data
are available to measure fair value, maximising the use of relevant observable inputs and minimising the use
of unobservable inputs.


All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised
within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the
fair value measurement as a whole:
∞ Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities
measurement is directly or indirectly observable
measurement is unobservable
For assets liabilities that are recognised in the financial statements on a recurring basis, the Group determines
whether transfers have occurred between levels in the hierarchy by reassessing categorisation (based on the
lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting
period.
For the purpose of fair value disclosures, the Group has determined classes of assets and liabilities on the
basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as
explained above.
d. Revenue recognition
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and
the revenue can be reliably measured, regardless of when the payment is being made. Revenue is measured
at the fair value of the consideration received or receivable, taking into account contractually defined terms
of payment and excluding taxes or duties collected on behalf of the government. The Group has concluded
that it is the principal in all of its revenue arrangements since it is the primary obligor in all the revenue
arrangements as it has pricing latitude and is also exposed to inventory and credit risks.
Based on the Educational Material on Ind AS 18 issued by the ICAI, the Group has assumed that recovery of
excise duty flows to the Group on its own account. This is for the reason that it is a liability of the manufacturer
which forms part of the cost of production, irrespective of whether the goods are sold or not. Since the
recovery of excise duty flows to the Group on its own account, revenue includes excise duty.
However, sales tax/ value added tax (VAT) / service tax is not received by the Group on its own account. Rather,
it is tax collected on service provided or value added to the commodity by the seller or service provider on
behalf of the government. Accordingly, it is excluded from revenue.
The specific recognition criteria described below must also be met before revenue is recognised.
Sale of goods
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the
goods have passed to the buyer, usually on dispatch of the goods. Revenue from the sale of goods is measured
at the fair value of the consideration received or receivable, net of returns and allowances, trade discounts and
volume rebates.
Sale of Services
When the outcome of a transaction involving the rendering of services can be estimated reliably, revenue
associated with the transaction is recognised by reference to the stage of completion of the transaction
at the end of the reporting period provided no significant uncertainty exists regarding the amount of the
consideration that will be derived from rendering the service. Service revenue are net of service tax.
Interest income
For all debt instruments measured at amortised cost, interest income is recorded using the effective interest
rate (EIR). EIR is the rate that exactly discounts the estimated future cash payments or receipts over the
expected life of the financial instrument or a shorter period, where appropriate, to the gross carrying amount
of the financial asset or to the amortised cost of a financial liability. When calculating the effective interest
rate, the Group estimates the expected cash flows by considering all the contractual terms of the financial
instrument (for example, prepayment, extension, call and similar options) but does not consider the expected
credit losses. Interest income is included in finance income in the statement of consolidated profit and loss.

e. Government grants
Government grants are recognised where there is reasonable assurance that the grant will be received and all
attached conditions will be complied with.
When the grant relates to an expense item, it is recognised as income on a systematic basis over the periods
that the related costs, for which it is intended to compensate, are expensed. When the grant relates to an
asset, it is recognised as income in equal amounts over the expected useful life of the related asset.
When the Group receives grants of non-monetary assets, the asset and the grant are recorded at fair value
amounts and released to profit or loss over the expected useful life in a pattern of consumption of the benefit
of the underlying asset i.e. by equal annual instalments.
f. Taxes
Current income tax
Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid
to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted
or substantively enacted, at the reporting date in the country where the Group operates and generates taxable
income.
Current income tax relating to items recognised outside profit or loss is recognised outside profit or loss
(either in other comprehensive income or in equity).
Current tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity.
Management periodically evaluates positions taken in the tax returns with respect to situations in which
applicable tax regulations are subject to interpretation and establishes provisions where appropriate.
Deferred tax
Deferred tax is provided using the liability method on temporary differences between the tax bases of assets
and liabilities and their carrying amounts for financial reporting purposes at the reporting date.
Deferred tax liabilities are recognised for all taxable temporary differences, except:
∞ When the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a
transaction that is not a business combination and, at the time of the transaction, affects neither the
accounting profit nor taxable profit or loss
∞ In respect of taxable temporary differences associated with investments in subsidiaries, when the timing
of the reversal of the temporary differences can be controlled and it is probable that the temporary
differences will not reverse in the foreseeable future.
Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax
credits and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable that
taxable profit will be available against which the deductible temporary differences, and the carry forward of
unused tax credits and unused tax losses can be utilised, except:
∞ When the deferred tax asset relating to the deductible temporary difference arises from the initial
recognition of an asset or liability in a transaction that is not a business combination and, at the time of
the transaction, affects neither the accounting profit nor taxable profit or loss.
∞ In respect of deductible temporary differences associated with investments in subsidiaries, deferred tax
assets are recognised only to the extent that it is probable that the temporary differences will reverse in
the foreseeable future and taxable profit will be available against which the temporary differences can be
utilised.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it
is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset
to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised
to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be
recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when
the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or
substantively enacted at the reporting date.


Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in
other comprehensive income or in equity).
Deferred tax items are recognised in correlation to the underlying transaction either in OCI or directly in
equity.
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current
tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same
taxation authority. MAT credit entitlement is presented in the financial statements as “Income tax assets” and
not offset to deferred tax asset / liability in the balance sheet as the conditions for offset as per Ind AS 12
Income taxes are not met.
Sales/ value added tax / Service taxes paid on acquisition of assets or on incurring expenses
Expenses and assets are recognised net of the amount of sales/ value added taxes /service tax paid, except:
∞ When the tax incurred on a purchase of assets or services is not recoverable from the taxation authority,
in which case, the tax paid is recognised as part of the cost of acquisition of the asset or as part of the
expense item, as applicable
∞ When receivables and payables are stated with the amount of tax included
The net amount of tax recoverable from, or payable to, the taxation authority is included as part of receivables
or payables in the balance sheet.
g. Property, plant and equipment
Property, plant and equipment is stated at cost, net of accumulated depreciation and accumulated impairment
losses, if any. When significant part of plant and equipment are required to be replaced at intervals, the Group
depreciates them separately based on their specific useful lives.
All other repair and maintenance cost are recognised in profit and loss as incurred.
Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets as follows:
Factory Buildings 10 - 30
Building (Other than Factory Building) 30 - 60
Building (Fences and temporary structure) 3-6
Plant and machinery 13 - 15
Furniture and fixtures 5 - 10
Leasehold Improvements (Outlets on Lease) 3
Dies and moulds 3
Computers 3-6
Office equipment's 5
Vehicles 6-8
An item of property, plant and equipment and any significant part initially recognised is derecognised upon
disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on
derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying
amount of the asset) is included in the income statement when the asset is derecognised.
h. Intangible assets
Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets
acquired in a business combination is their fair value at the date of acquisition. Following initial recognition,
intangible assets are carried at cost less any accumulated amortisation and accumulated impairment losses.
Internally generated intangibles, excluding capitalised development costs, are not capitalised and the related
expenditure is reflected in profit or loss in the period in which the expenditure is incurred.

The useful lives of intangible assets are assessed finite as per table below:
Trademarks and Copyrights 9-10
Brands 10
Software and Licences 10
Intangible assets with finite lives are amortised over the useful economic life and assessed for impairment
whenever there is an indication that the intangible asset may be impaired. The amortisation period and the
amortisation method for an intangible asset with a finite useful life are reviewed at least at the end of each
reporting period. Changes in the expected useful life or the expected pattern of consumption of future
economic benefits embodied in the asset are considered to modify the amortisation period or method, as
appropriate, and are treated as changes in accounting estimates.
Gains or losses arising from derecognition of an intangible asset are measured as the difference between the
net disposal proceeds and the carrying amount of the asset and are recognised in the statement of profit or
loss when the asset is derecognised.
i. Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily
takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of
the asset. All other borrowing costs are expensed in the period in which they occur. Borrowing costs consist
of interest and other costs that an entity incurs in connection with the borrowing of funds.
j. Leases
The determination of whether an arrangement is (or contains) a lease is based on the substance of the
arrangement at the inception of the lease. The arrangement is, or contains, a lease if fulfilment of the
arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use
the asset or assets, even if that right is not explicitly specified in an arrangement.
For arrangements entered into prior to April 1, 2015, the Group has determined whether the arrangement
contain lease on the basis of facts and circumstances existing on the date of transition.
Group as a lessee
A lease is classified at the inception date as a finance lease or an operating lease. A lease that transfers
substantially all the risks and rewards incidental to ownership to the Group is classified as a finance lease. An
operating lease is a lease other than a finance lease.
Operating lease payments are recognised as an expense in the statement of Consolidated statement of profit
and loss on a straight-line basis over the lease term.
k. Inventories
Inventories are valued at the lower of cost and net realisable value.
Costs incurred in bringing each product to its present location and condition are accounted for as follows:
∞ Raw materials: Cost includes cost of purchase and other costs incurred in bringing the inventories to their
present location and condition. Cost is determined on first in, first out basis.
∞ Finished goods and work in progress: Cost includes cost of direct materials and labour and a proportion
of manufacturing overheads based on the normal operating capacity, but excluding borrowing costs.
Cost is determined on first in, first out basis.
∞ Traded goods: Cost includes cost of purchase and other costs incurred in bringing the inventories to their
present location and condition. Cost is determined on first in, first out basis.
Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of
completion and the estimated costs necessary to make the sale.
l. Impairment of non-financial assets
The Group assesses, at each reporting date, whether there is an indication that an asset may be impaired.
If any indication exists, or when annual impairment testing for an asset is required, the Group estimates the
asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash-generating


unit’s (CGU) fair value less costs of disposal and its value in use. Recoverable amount is determined for an
individual asset, unless the asset does not generate cash inflows that are largely independent of those from
other assets or Group’s assets. When the carrying amount of an asset or CGU exceeds its recoverable amount,
the asset is considered impaired and is written down to its recoverable amount.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and the risks specific to
the asset. In determining fair value less costs of disposal, recent market transactions are taken into account.
If no such transactions can be identified, an appropriate valuation model is used. These calculations are
corroborated by valuation multiples, quoted share prices for publicly traded companies or other available fair
value indicators.
The Group bases its impairment calculation on detailed budgets and forecast calculations, which are prepared
separately for each of the Group’s CGUs to which the individual assets are allocated. These budgets and
forecast calculations generally cover a period of five years. For longer periods, a long-term growth rate is
calculated and applied to project future cash flows after the fifth year. To estimate cash flow projections
beyond periods covered by the most recent budgets/forecasts, the Group extrapolates cash flow projections
in the budget using a steady or declining growth rate for subsequent years, unless an increasing rate can be
justified. In any case, this growth rate does not exceed the long-term average growth rate for the products,
industries, or country or countries in which the entity operates, or for the market in which the asset is used
Impairment losses including impairment on inventories, are recognised in the consolidated statement of profit
and loss.
For assets excluding goodwill, an assessment is made at each reporting date to determine whether there is an
indication that previously recognised impairment losses no longer exist or have decreased. If such indication
exists, the Group estimates the asset’s or CGU’s recoverable amount. A previously recognised impairment
loss is reversed only if there has been a change in the assumptions used to determine the asset’s recoverable
amount since the last impairment loss was recognised. The reversal is limited so that the carrying amount
of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been
determined, net of depreciation, had no impairment loss been recognised for the asset in prior years. Such
reversal is recognised in the statement of profit or loss unless the asset is carried at a revalued amount, in
which case, the reversal is treated as a revaluation increase.
Goodwill is tested for impairment annually on reporting date and when circumstances indicate that the
carrying value may be impaired.
Impairment is determined for goodwill by assessing the recoverable amount of each CGU (or Company of
CGUs) to which the goodwill relates. When the recoverable amount of the CGU is less than its carrying
amount, an impairment loss is recognised. Impairment losses relating to goodwill cannot be reversed in future
periods.
m. Provisions
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past
event, it is probable that an outflow of resources embodying economic benefits will be required to settle the
obligation and a reliable estimate can be made of the amount of the obligation. When the Group expects
some or all of a provision to be reimbursed, for example, under an insurance contract, the reimbursement is
recognised as a separate asset, but only when the reimbursement is virtually certain. The expense relating to
a provision is presented in the consolidated statement of profit and loss net of any reimbursement.
If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate
that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the
provision due to the passage of time is recognised as a finance cost.
n. Retirement and other employee benefits
Retirement benefit in the form of provident fund is a defined contribution scheme. The Group has no obligation,
other than the contribution payable to the provident fund. The Group recognizes contribution payable to the
provident fund scheme as an expense, when an employee renders the related service. If the contribution
payable to the scheme for service received before the balance sheet date exceeds the contribution already
paid, the deficit payable to the scheme is recognized as a liability after deducting the contribution already

paid. If the contribution already paid exceeds the contribution due for services received before the balance
sheet date, then excess is recognized as an asset to the extent that the pre-payment will lead to, for example,
a reduction in future payment or a cash refund.
The Company operates a defined benefit gratuity plan in India, which requires contributions to be made to
a separately administered fund. The cost of providing benefits under the defined benefit plan is determined
using the projected unit credit method.
Remeasurements, comprising of actuarial gains and losses, are recognised immediately in the balance sheet
with a corresponding debit or credit to retained earnings through OCI in the period in which they occur.
Remeasurements are not reclassified to profit or loss in subsequent periods.
Net interest is calculated by applying the discount rate to the net defined benefit liability or asset. The Group
recognises the following changes in the net defined benefit obligation as an expense in the consolidated
statement of profit and loss:
∞ Service costs comprising current service costs, past-service costs, gains and losses on curtailments and
non- routine settlements; and
∞ Net interest expense or income
o. Share-based payments
Employees (including senior executives) of the Company receive remuneration in the form of share-based
payments, whereby employees render services as consideration for equity instruments (equity- settled
transactions).
Equity-settled transactions
The cost of equity-settled transactions is determined by the fair value at the date when the grant is made using
an appropriate valuation model.
That cost is recognised, together with a corresponding increase in employee stock option outstanding in
equity, over the period in which the performance and/or service conditions are fulfilled in employee benefits
expense. The cumulative expense recognised for equity-settled transactions at each reporting date until the
vesting date reflects the extent to which the vesting period has expired and the Company’s best estimate of
the number of equity instruments that will ultimately vest. The statement of profit and loss expense or credit
for a period represents the movement in cumulative expense recognised as at the beginning and end of that
period and is recognised in employee benefits expense.
Service and non-market performance conditions are not taken into account when determining the grant date
fair value of awards, but the likelihood of the conditions being met is assessed as part of the Company’s best
estimate of the number of equity instruments that will ultimately vest. Market performance conditions are
reflected within the grant date fair value. Any other conditions attached to an award, but without an associated
service requirement, are considered to be non-vesting conditions. Non-vesting conditions are reflected in the
fair value of an award and lead to an immediate expensing of an award unless there are also service and/or
performance conditions.
No expense is recognised for awards that do not ultimately vest because non-market performance and/
or service conditions have not been met. Where awards include a market or non-vesting condition, the
transactions are treated as vested irrespective of whether the market or non-vesting condition is satisfied,
provided that all other performance and/or service conditions are satisfied.
The dilutive effect of outstanding options is reflected as additional share dilution in the computation of diluted
earnings per share.
p. Financial instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or
equity instrument of another entity.
Financial assets
All financial assets are recognised initially at fair value plus, in the case of financial assets not recorded at


fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial
asset. Purchases or sales of financial assets that require delivery of assets within a time frame established by
regulation or convention in the market place (regular way trades) are recognised on the trade date, i.e., the
date that the Group commits to purchase or sell the asset.
For purposes of subsequent measurement, financial assets are classified in four categories -
1. Debt instruments at amortised cost
2. Debt instruments at fair value through other comprehensive income (FVTOCI)
3. Debt instruments, derivatives and equity instruments at fair value through profit or loss (FVTPL
4. Equity instruments measured at fair value through other comprehensive income (FVTOCI)
The Group does not have any financial assets falling under category 2 and 4 above.
Debt instruments at amortised cost
A ‘debt instrument’ is measured at the amortised cost if both the following conditions are met:
a) The asset is held within a business model whose objective is to hold assets for collecting contractual cash
flows, and
b) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of
principal and interest (SPPI) on the principal amount outstanding.
This category is the most relevant to the Group. After initial measurement, such financial assets are
subsequently measured at amortised cost using the effective interest rate (EIR) method. Amortised cost is
calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral
part of the EIR. The EIR amortisation is included in finance income in the profit or loss. The losses arising from
impairment are recognised in the profit or loss. This category generally applies to trade and other receivables.
Debt instrument at FVTPL
FVTPL is a residual category for debt instruments. Any debt instrument, which does not meet the criteria for
categorization as at amortized cost or as FVTOCI, is classified as at FVTPL. In addition, the group may elect to
designate a debt instrument, which otherwise meets amortized cost or FVTOCI criteria, as at FVTPL. However,
such election is allowed only if doing so reduces or eliminates a measurement or recognition inconsistency
(referred to as ‘accounting mismatch’). The group has not designated any debt instrument as at FVTPL. Debt
instruments included within the FVTPL category are measured at fair value with all changes recognized in the
P&L.
Equity investments
All equity investments in scope of Ind AS 109 are measured at fair value. Equity instruments which are held
for trading are classified as at FVTPL and are measured at fair value with all changes recognised in the
profit or loss. For all other equity instruments, the group may make an irrevocable election to present in
other comprehensive income subsequent changes in the fair value. The group makes such election on an
instrument- by-instrument basis. The classification is made on initial recognition and is irrevocable.
If the group decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument,
excluding dividends, are recognized in the OCI. There is no recycling of the amounts from OCI to P&L, even
on sale of investment. However, the group may transfer the cumulative gain or loss within equity.
Derecognition
A financial asset (or, where applicable, a part of a financial asset or part of a Company of similar financial assets)
is primarily derecognised (i.e. removed from the Group’s balance sheet) when:
∞ The rights to receive cash flows from the asset have expired, or
∞ The Group has transferred its rights to receive cash flows from the asset or has assumed an obligation
to pay the received cash flows in full without material delay to a third party under a ‘pass-through’
arrangement; and either
(a) The Group has transferred substantially all the risks and rewards of the asset, or
(b) The Group has neither transferred nor retained substantially all the risks and rewards of the asset, but
has transferred control of the asset.

When the Group has transferred its rights to receive cash flows from an asset or has entered into a pass-through
arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it
has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred
control of the asset, the Group continues to recognise the transferred asset to the extent of the Group’s
continuing involvement. In that case, the Group also recognises an associated liability. The transferred asset
and the associated liability are measured on a basis that reflects the rights and obligations that the Group has
retained.
Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower
of the original carrying amount of the asset and the maximum amount of consideration that the Group could
be required to repay.
Impairment of financial assets
In accordance with Ind AS 109, the Group applies expected credit loss (ECL) model for measurement and
recognition of impairment loss.
ECL is the difference between all contractual cash flows that are due to the Group in accordance with the
contract and all the cash flows that the entity expects to receive (i.e., all cash shortfalls), discounted at the
original EIR. ECL impairment loss allowance (or reversal) recognized during the period is recognized as
income/ expense in the consolidated statement of profit and loss.
For assessing increase in credit risk and impairment loss, the Group combines financial instruments on the
basis of shared credit risk characteristics with the objective of facilitating an analysis that is designed to enable
significant increases in credit risk to be identified on a timely basis.
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss,
loans and borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as
appropriate.
All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables,
net of directly attributable transaction costs.
The Group’s financial liabilities include trade and other payables, loans and borrowings including bank
overdrafts.
The measurement of financial liabilities depends on their classification, as described below:
Loans and borrowings
This is the category most relevant to the Group. After initial recognition, interest-bearing loans and borrowings
are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in profit
or loss when the liabilities are derecognised as well as through the EIR amortisation process.
Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs
that are an integral part of the EIR. The EIR amortisation is included as finance costs in the consolidated
statement of profit and loss.
This category generally applies to borrowings.
The Group does not have any financial liabilities at fair value through profit or loss.
Derecognition
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires.
When an existing financial liability is replaced by another from the same lender on substantially different
terms, or the terms of an existing liability are substantially modified, such an exchange or modification is
treated as the derecognition of the original liability and the recognition of a new liability. The difference in the
respective carrying amounts is recognised in the Consolidated statement of profit or loss.
Embedded derivatives
An embedded derivative is a component of a hybrid (combined) instrument that also includes a non-derivative
host contract – with the effect that some of the cash flows of the combined instrument vary in a way similar to
a stand-alone derivative. An embedded derivative causes some or all of the cash flows that otherwise would


be required by the contract to be modified according to a specified interest rate, financial instrument price, or
other variable, provided in the case of a non-financial variable that the variable is not specific to a party to the
contract. Reassessment only occurs if there is either a change in the terms of the contract that significantly
modifies the cash flows that would otherwise be required or a reclassification of a financial asset out of the
fair value through profit or loss.
If the hybrid contract contains a host that is a financial asset within the scope of Ind AS 109, the group does
not separate embedded derivatives. Rather, it applies the classification requirements contained in Ind AS 109
to the entire hybrid contract. Derivatives embedded in all other host contracts are accounted for as separate
derivatives and recorded at fair value if their economic characteristics and risks are not closely related to those
of the host contracts and the host contracts are not held for trading or designated at fair value though profit
or loss. These embedded derivatives are measured at fair value with changes in fair value recognised in profit
or loss, unless designated as effective hedging instruments.
Reclassification of financial assets
The group determines classification of financial assets and liabilities on initial recognition. After initial
recognition, no reclassification is made for financial assets which are equity instruments and financial
liabilities. For financial assets which are debt instruments, a reclassification is made only if there is a change in
the business model for managing those assets. Changes to the business model are expected to be infrequent.
The group’s senior management determines change in the business model as a result of external or internal
changes which are significant to the group’s operations. Such changes are evident to external parties. A
change in the business model occurs when the group either begins or ceases to perform an activity that is
significant to its operations. If the group reclassifies financial assets, it applies the reclassification prospectively
from the reclassification date which is the first day of the immediately next reporting period following the
change in business model. The group does not restate any previously recognised gains, losses (including
impairment gains or losses) or interest.
Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there
is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a
net basis, to realise the assets and settle the liabilities simultaneously.
q. Cash and cash equivalents
Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits
with an original maturity of three months or less, which are subject to an insignificant risk of changes in
value.
r. Cash dividend to equity holders of the Company
The Company recognises a liability to make cash or non-cash distributions to equity holders of the parent
when the distribution is authorised and the distribution is no longer at the discretion of the Company. As per the
corporate laws in India, a distribution is authorised when it is approved by the shareholders. A corresponding
amount is recognised directly in equity.

(` in Lacs)
NOTE 4A. Property, plant and equipment’s
Particulars Freehold Lease- Building Plant and Dies and Furniture Leasehold Office Vehicle Total
land @ hold land #@ machinery moulds and fixture Improve- equip- tangible
ment ments assets
Cost
As at April 1, 2015 3,727.30 352.19 12,049.82 10,725.95 173.76 450.94 103.73 318.55 477.33 28,379.57
Additions - - 609.80 1,813.35 48.00 65.30 1.10 124.87 33.18 2,695.60
Disposals - - 40.35 477.38 4.60 10.06 26.30 5.64 13.49 577.82
As at March 31, 2016 3,727.30 352.19 12,619.27 12,061.92 217.16 506.18 78.53 437.78 497.02 30,497.35
Additions 939.79 - 1,233.82 2,647.13 571.13 74.58 5.81 193.83 131.24 5,797.33
Disposals 10.07 - 4.09 178.03 7.20 2.32 - 1.78 20.29 223.78
As at March 31, 2017 4,657.02 352.19 13,849.00 14,531.02 781.09 578.44 84.34 629.83 607.97 36,070.90
Depreciation and
impairment
As at April 1, 2015 - - - - - - - - - -
Depreciation charge - 3.99 550.58 1,969.20 95.03 108.60 48.65 146.08 122.51 3,044.64
for the year
Disposals - - 0.09 315.07 2.44 4.09 13.80 2.73 3.88 342.10
As at March 31, 2016 - 3.99 550.49 1,654.13 92.59 104.51 34.85 143.35 118.63 2,702.54
Depreciation charge - 4.05 576.05 1,788.29 127.96 105.37 37.30 140.01 114.29 2,893.32
for the year
Disposals - - 0.28 77.55 6.49 1.44 - 1.24 9.67 96.67
As at March 31, 2017 - 8.04 1,126.26 3,364.87 214.06 208.44 72.15 282.12 223.25 5,499.19
Net book value
As at March 31, 2017 4,657.02 344.15 12,722.74 11,166.15 567.03 370.00 12.19 347.71 384.72 30,571.71
As at March 31, 2016 3,727.30 348.20 12,068.78 10,407.79 124.57 401.67 43.68 294.43 378.39 27,794.81
As at April 1, 2015 3,727.30 352.19 12,049.82 10,725.95 173.76 450.94 103.73 318.55 477.33 28,379.57
@ Freehold land and building includes asset which are not transferred in the name of the company amounting to `2,997.27 (Gross
block) (2016 - `5,507.76, 2015 - `5,507.76). These are held in the name of the entities which have been merged with the company in
earlier years.
# Includes `374.31 (2016 - `374.31, 2015 - `374.31) represented by unquoted fully paid shares at cost in various co-operative
societies.
The Group has not capitalised any borrowing cost in current and previous year.


(` in Lacs)
NOTE 4B. Intangible assets
Particulars Goodwill Other Intangible assets Total other
Trademarks Softwares and intangible
and Licences assets
Copyrights $
Cost
As at April 1, 2015 78,633.19 104.77 293.05 397.82
Additions - - 47.43 47.43
Disposals - - - -
As at March 31, 2016 78,633.19 104.77 340.48 445.25
Additions - - 259.94 259.94
Disposals - - - -
As at March 31, 2017 78,633.19 104.77 600.42 705.19
Amortisation and impairment
As at April 1, 2015 - - - -
Amortisation charge for the year - 45.28 50.23 95.51
Disposals - - - -
As at March 31, 2016 - 45.28 50.23 95.51
Amortisation charge for the year - 42.26 69.97 112.23
Disposals - - - -
As at March 31, 2017 - 87.54 120.20 207.74
Net book value
As at March 31, 2017 78,633.19 17.23 480.22 497.45
As at March 31, 2016 78,633.19 59.49 290.25 349.74
As at April 1, 2015 78,633.19 104.77 293.05 397.82
$ Includes trademarks and copyrights of `81.22 (2016 - 81.22) (2015 - 81.22) pending for registration in the name
of the Company and `20.23 ( 2016 `20.23 ) ( 2015 - ` 20.23 ) pending for registration in the name of the Jyothy
Fabricare Services Limited.
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 FY 2015-16).
A) Goodwill of ` 70,925.56 lacs relates to the acquisition of erstwhile business of Henkel India Limited. 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. Further, an
amount of `250.10 lacs pertains to Fabric Care segment and has been entirely allocated to this reportable segment.
The following key assumptions were considered while performing the above 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
cash flows. The growth rates used to estimate future performance (revenue, cost of goods sold, expenses etc) are
B) Goodwill of ` 7,457.87 lacs relates to various acquisitions in the laundry services segment and has been entirely
allocated to this segment.

(` in Lacs)
The following key assumptions were considered while performing the above impairment testing : -
Terminal value growth rate - 5%
Weighted Average Cost of Capital % (WACC) (Discount rate) - 12.5%
The projections cover a period of eight years, as we believe this to be the most appropriate timescale over which
cash flows. The growth rates used to estimate future performance (revenue, cost of services, expenses etc) are
FINANCIAL ASSETS
NOTE 5. Investments
As at As at As at
Investments at fair value through profit and loss*
Henkel SPIC Employees Co-operative Thrift and
Credit Society Limited
2,000 (2016 - 2,000 ; 2015 - 2,000) equity shares 2.00 2.00 2.00
of `100 (2016 - ` 100 ; 2015 - `100) each fully paid
up
Capexil (Agencies) Ltd
5 (2016 - 5 ; 2015 - 5) equity shares of ` 1,000 - - -
(2016 - `1,000 ; 2015 - Rs 1,000) each fully paid
up
Madras Industrial Cooperative Analytical Laboratory
Limited
2 (2016 - 2 ; 2015 - 2) equity shares of ` 500 (2016 - - -
- `500 ; 2015 - `500) each fully paid up
Indira Vikas Patra 0.02 0.02 0.02
National Saving Certificates (Pledged with 0.57 0.57 0.57
Government authorities)
2.59 2.59 2.59
Aggregate value of unquoted investments 2.59 2.59 2.59
Aggregate amount of impairment in value of - - -
investments
* Investment at fair value through profit or loss reflect investment in unquoted equity securities. Since the amount
is not material, the fair value disclosure have not been made.
NOTE 6. Loans (Unsecured consider good, unless otherwise stated)

Non Current Current
March 31, March 31, April 1, 2015 March 31, March 31, April 1, 2015
2017 2016 2017 2016
Deposits 922.71 825.21 864.58 78.84 217.58 162.83
Less: Impairment Allowance (21.03) (21.03) (49.26) - - -
(provisions for doubtful
advance)
901.68 804.18 815.32 78.84 217.58 162.83


(` in Lacs)
NOTE 7. Trade Receivables ( Unsecured )
Non Current Current
2017 2016 2017 2016
Considered good 569.27 - - 11,711.74 9,411.03 5,741.90
Considered doubtful - - - 1,204.26 1,200.54 1,397.11
569.27 - - 12,916.00 10,611.57 7,139.01
Impairment Allowance
(Provisions bad and doubtful
debts)
Considered doubtful - - - (1,204.26) (1,200.54) (1,397.11)
569.27 - - 11,711.74 9,411.03 5,741.90
Trade receivable are non interest bearing and are generally on advance term or for a term of 15-30 days.
No trade or other receivable are due from directors or other officers of the company either severally or jointly with
any other person, nor any trade or other receivable are due from firms or private companies respectively in which
any director is a partner, a director or a member.
NOTE 8. Other financial assets

Non Current Current
2017 2016 2017 2016
Fixed deposit with Banks 516.03 93.87 250.93 - 266.88 207.04
having original maturity
of more than 12 months
(Note 13b)
Interest receivable - - - - - 2.01
Staff Loans - - - 154.43 146.96 108.63
Less: Impairment Allowance - - - (21.06) (21.06) (21.06)
advances)
637.03 340.37 622.94 258.87 519.01 428.16
Breakup of financial assets
Trade receivable (Note 7) 569.27 - - 11,711.74 9,411.03 5,741.90
Loans (Note 6) 901.68 804.18 815.32 78.84 217.58 162.83
Other financial assets (Note 637.03 340.37 622.94 258.87 519.01 428.16
8)
Cash and cash equivalent - - - 10,344.08 6,119.83 7,463.75
and other bank balance
(Note 13a & 13b)
Total financial assets carried 2,107.98 1,144.55 1,438.26 22,393.53 16,267.45 13,796.64
at amortised cost

(` in Lacs)
NOTE 9. Income tax assets (net)
Non Current Current
2017 2016 2017 2016
MAT Credit entitlement 11,840.06 9,194.39 6,344.11 - - -
Advance income tax (net of 2,573.70 3,155.60 2,128.84 - - -
provisions of `14,267.10
(2016 `9,952.90, 2015
` 6,877.90)
14,413.76 12,349.99 8,472.95 - - -
NOTE 10. Other assets

Non Current Current
2017 2016 2017 2016
Capital Advances 358.10 805.90 152.89 - - -
Advance to suppliers* 494.85 58.45 65.85 1,381.40 1,585.59 1,500.97
Balance with government 9,970.76 8,955.06 7,346.82 1,866.55 1,428.17 2,045.55
authorities and protest
payments* (Note 42)
Prepaid Expenses 5.52 74.96 75.41 521.63 211.72 216.08
Asset held for sale - - - 68.05 147.30 147.30
Other receivables* 624.77 614.95 607.40 320.62 151.05 221.63
Less: Impairment Allowance (667.10) (230.70) (250.71) (923.87) (1,277.33) (1,208.57)
advances)
10,786.90 10,278.62 7,997.66 3,234.38 2,246.50 2,922.96
* Advances to suppliers, Balance with government authorities & Protest payments, Other receivables and Capital
Advances include `537.22 (2016 - `454.27; 2015 - 385.52), Rs 1,048.50 (2016 - ` 1,048.50 ; 2015 - ` 1,048.50),
`5.25 (2016 - `5.25 ; 2015 - ` 5.25) and ` Nil (2016 - ` Nil ; 2015-` 20.01) respectively, considered doubtful and
fully provided for.


(` in Lacs)
NOTE 11. Inventories (Valued at lower of cost or net realisable value)
As at As at As at
Raw and packing materials ( including goods in transit 5,402.51 5,034.18 5,238.99
`Nil (2016 - ` 2.19 ; 2015 - ` Nil)
Work in progress 1,525.59 1,547.72 1,371.28
Finished goods manufactured 8,438.11 8,089.44 7,395.12
Traded Goods ( including goods in transit ` 165.47 3,437.89 3,154.31 4,113.09
(2016 - `253.66 ; 2015 - `322.89)
Sales Promotions Items 392.06 242.65 294.61
Stores, Operating supplies and spare parts 441.07 439.85 401.88
19,637.23 18,508.15 18,814.97
Inventories are net of provision of ` 1,164.97 (2016 - `799.28, 2015 - `1,128.98) on account of damage and slow
moving inventories.
NOTE 12. Investments

As at As at As at
(Investment at fair value through profit and loss)
Axis Banking Debt Fund - Growth
Nil (2016 - Nil, 2015 - 133,859.97) units of ` Nil - - 1,718.53
(2016 - ` Nil, 2015 - ` 1,000) each
Axis Liquid Fund - Growth
38,946.29 (2016 - 190,885.67 ; 2015 - Nil) units of 702.29 3,205.79 -
`1,000 (2016 - ` 1,000 ; 2015 - `Nil) each
Axis Short Term Fund
Nil (2016 - Nil ; 2015 - 3,298,544.68) units of ` Nil - - 507.67
(2016 - `Nil ; 2015 - ` 10) each
Axis Treasury Advantage Fund - Growth
38,231.93 (2015 - Nil; 2015 - 265,018.71) units of 705.80 - 4,150.17
`1,000 (2016 - ` Nil; 2015 - `1,000) each
HDFC Gilt Fund Long Term Plan - Diret Plan - Growth
Nil (2016 - Nil ; 2015 - 5,672,438.54) units of ` Nil - - 1,624.96
(2016 - ` Nil ; 2015 - ` 10) each
HDFC High Interest Fund - Dynamic Plan
Nil (2016 - Nil ; 2015 - 815,281.64) units of ` Nil - - 400.37
(2016 - ` Nil ; 2015 - ` 10) each
ICICI Prudential STP - Growth
Nil (2016 - Nil ; 2015 - 1,785,912.01) units of ` Nil - - 511.30
(2016 - Nil ; 2015 - ` 10) each
ICICI Prudential Ultra Short Term Plan - Dir - Gr
(2016 - ` Nil ; 2015 - ` 10) each
Indiabulls Ultra Short Term Fund
Nil (2016 - 77,179.60 ; 2015 - 115,556.48) units of - 1,140.52 1,561.03
` Nil (2016 - ` 1,000 ; 2015 - ` 1,000) each

NOTE 12. Investments (contd.)
As at As at As at
Reliance Short Term Fund
Nil (2016 -Nil ; 2015 - 5,143,139.64) units of ` Nil - - 1,365.59
(2016 - ` Nil ; 2015 - ` 10) each
Religare Invesco Short Term Fund
Nil (2016 - Nil ; 2015 - 53,149.72) units of ` Nil (2016 - - 1,013.36
- ` Nil ; 2015 - ` 1,000) each
Religare Invesco Ultra Short Term Fund - Direct Plan
Nil (2016 - Nil ; 2015 - 51,584.63) units of ` Nil (2016 - - 1,001.48
- ` Nil ; 2015 - `1,000) each
Tauras Short Term Income Fund
Nil (2016 - Nil ; 2015 - 20,401.56) units of ` Nil (2016 - - 501.45
- ` Nil ; 2015 - `1,000) each
Tauras Ultra Short Term Bond Fund Super Institution
Nil (2016 - 16,293.48 ; 2015 - 41,593.42) units of - 300.25 701.66
` Nil (2016 - ` 1,000 ; 2015 - ` 1,000) each
Axis Treasury Advantage Fund - Direct Growth
- ` Nil; 2015 - `1,498.89) each
Religare Invesco Credit Opportunities Fund - Growth
(CO-IG)
- ` Nil ; 2015 - `1,563.19) each
TSTG Tata Short Term Bond Fund Plan A - Growth
1,953,407.32 (2016 - 1,953,407.32 ; 2015 - 597.13 550.10 509.91
1,953,407.32) units of ` 25.59 (2016 - ` 25.59 ; 2015
- 25.59) each
HDFC High Interest Fund - Dynamic Plan - Growth
1,037,150.73 (2016 - 1,037,150.73 ; 2015 - 587.35 528.85 500.09
1,037,150.73) units of ` 48.20 (2016 - 48.20 ; 2015
- ` 48.20) each
Franklin India Low Duration Fund - Growth
(2016 - ` Nil ; 2015 - 15.04) each
Kotak Low Duration Fund
12,744.69 (2016 - 99,822.06 ; 2015 - Nil) units of 253.26 1,835.99 -
`1,982.48 (2016 - ` 1,000 ; 2015 - ` Nil) each
Tauras Dynamic Income Fund - Growth Option
Nil (2016 - 68,32,489.19 ; 2015 - Nil) units of ` Nil - 1,027.65 -
(2016 - ` 10 ; 2015 - ` Nil) each
2,845.83 8,589.15 19,497.57
For determination of fair values, refer Note 49


(` in Lacs)
NOTE 13
Non Current Current
2017 2016 2017 2016
13.(a) Cash and cash
equivalents
Cash in hand - - - 28.73 37.83 43.75
Balance with banks
- Current account - - - 3,498.64 1,764.96 2,477.97
- Deposit account - - - 377.80 425.32 -
(Original maturity
of less than three
months)
Unclaimed dividend - - - 106.49 139.28 53.34
accounts
- - - 4,011.66 2,367.39 2,575.06
13 (b) Other bank
balances
Deposit account - - - 145.62 273.63 572.03
(Original maturity
of more than three
months)
Deposits with original 516.03 93.87 250.93 6,186.80 3,745.69 4,523.70
maturity for more
than 12 months*
Amount disclosed (516.03) (93.87) (250.93) - (266.88) (207.04)
under 'Other financial
assets' ( Note 8)
- - - 6,332.42 3,752.44 4,888.69
- - - 10,344.08 6,119.83 7,463.75
* Includes deposits provided as securities against bank guarantees and debenture redemption reserves ` 3,199.13
( 2016 - ` 3,076.99 ; 2015 - ` 2,847.17)
(` in Lacs)
NOTE 14. Share Capital
As at As at As at
Authorised capital
2,720,000,000 (2016 - 2,570,000,000 , 2015 - 27,200.00 25,700.00 25,700.00
2,570,000,000) equity shares of Re. 1 (2016 -Re. 1 ,
2015 - Re. 1) each
30,000 (2016 -Nil , 2015 -Nil) 11% cumulative 30.00 - -
preference shares of ` 100 (2016 - ` Nil, 2015 - ` Nil)
each
27,230.00 25,700.00 25,700.00
Terms/ rights attached to equity shares
The Company has only one class of equity shares having par value of 1 Re 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.

(` in Lacs)
Issued Equity Capital
a. Reconciliation of the shares outstanding at the beginning and at the end of the reporting period
No. Amount No. Amount No. Amount
At the beginning of 18,11,19,680 1,811.20 18,10,23,496 1,810.23 18,10,23,496 1,810.23
the period
Issued during the 5,64,044 5.64 96,184 0.97 - -
year (Note 40)
Outstanding at the 18,16,83,724 1,816.84 18,11,19,680 1,811.20 18,10,23,496 1,810.23
end of the period
b. Details of shareholders holding more than 5% shares in the Company

No. % Holding in No. % Holding in No. % Holding in
the class the class the class
Equity shares of Re 1
each fully paid
M. P. Ramachandran 7,01,36,948 38.60% 7,21,12,060 39.81% 7,21,12,060 39.84%
Sahyadri Agencies 1,50,00,000 8.26% 1,50,00,000 8.28% 1,50,00,000 8.29%
Limited
As per records of the Company, including its register of shareholders/ members and other declarations received
from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial
ownerships of shares.
c. Aggregate number of bonus shares issued, shares issued for consideration other than cash during the period
of five years immediately preceding the reporting date:
As at At at At at
Equity shares allotted as fully paid bonus shares by 23,79,748 23,79,748 23,79,748
capitalization of securities premium (FY 2013 - 2014)
Equity shares issued for consideration other than cash 23,79,748 23,79,748 23,79,748
pursuant to scheme of amalgamation with erstwhile
Jyothy Consumer Products Limited (JCPL) (FY 2013
- 2014)
47,59,496 47,59,496 47,59,496
In addition the company has issued 564,044 shares (2016 - 96,184 ; 2015 - Nil) during the period of five years
immediately preceding the reporting date on exercise of option granted under the employee stock option plan
(ESOP) wherein part consideration was received in form of employee services.
d. Share received for issue under option
For details of shares reserved for issue under the employee stock option plan (ESOP) of the company, please refer
Note 40


(` in Lacs)
NOTE 15. Distibution made and Proposed
As at As at
March 31, 2017 March 31, 2016
Cash dividend on equity shares declared and paid :
Final dividend for the year ended March 31, 2016 Re 1 per share, ( 2015 1,811.20 7,240.94
- ` 4 per share)
Dividend distibution tax on final dividend 368.72 1,474.08
Interim dividend for the year ended March 31, 2016 ` 4 per share, ( 2016 - 7,244.79
- ` Nil )
Dividend distibution tax on interim dividend - 1,474.87
2,179.92 17,434.68
Proposed dividends on equity shares :
Final dividend for the year ended March 31, 2017 ` 6 per share, ( 2016 10,901.02 1,811.20
Re 1 per share)
Divident distibution tax on final dividend 2,219.19 368.72
13,120.21 2,179.92
Proposed dividends on equity shares are subject to approval at the annual general meeting and are not recognised
as as liability ( including DDT thereon ) as at March 31.
FINANCIAL LIABILITIES
NOTE 16. Borrowings

Non Current Current
2017 2016 2017 2016
Term loans from Bank 727.44 902.44 1,077.44 - - -
(Secured ) (Note 1 below)
Secured Redeemable Zero
Coupon Non Convertible
Debentures
Nil (2016 - 4,000 ; 2015 - - 40,000.00 40,000.00 - - -
4,000) Debentures of ` Nil
(2016 - ` 10,00,000 ; 2015
- ` 10,00,000) each (Note 2
below)
Secured Redeemable Non
Convertible Debentures
4,000 (2016 - Nil ; 2015 40,000.00 - - - - -
- Nil) Debentures of
`10,00,000 (2016 - ` Nil ;
2015 - `Nil) each (Note 3
below)
9.65% Secured Redeemable
Non Convertible Debentures
Nil (2016 - Nil ; 2015 - 650) - - 6,500.00 - - -
Debentures of ` Nil (2016 -
` Nil ; 2015 - ` 10,00,000)
each

(` in Lacs)
NOTE 16. Borrowings (contd.)
Non Current Current
2017 2016 2017 2016
10.25% Secured Redeemable
Non Convertible Debentures
Nil (2016 - Nil ; 2015 - 500) - - 5,000.00 - - -
Debentures of ` Nil (2016
- `Nil ; 2015 - ` 10,00,000)
each
Secured Zero Coupon Non
Convertible Debentures
400 (2016 - 400 ; 2015 4,000.00 4,000.00 4,000.00 - - -
- 400) Debentures
of ` 10,00,000 (2016
- `10,00,000 ; 2015 -
`10,00,000) each (Note 4
below)
Deferred Payment Liability 180.00 180.00 360.00 - - -
(Unsecured) (Note 5 below)
Commercial Paper - - - 4,919.04 - -
(Unsecured) (Note 6 below)
Amount disclosed under (44,355.00) (44,355.00) (12,035.00) - - -
'Other Financial Liabilities'
(Note 17)
552.44 727.44 44,902.44 4,919.04 - -
Details of loan:
1) Term loan of `727.44 ( 2016 - `902.44 ; 2015 - `1,077.44) from bank has been taken in financial year 2012-13.
The loan is repayable in 32 quarterly instalments beginning from August 2013. The loan is secured by exclusive
first charge on the entire fixed assets and current assets of the JFSL-JLL (JV) and further secured by corporate
guarantee given by the company.
2) 4,000 Zero coupon non convertible redeemable debentures of ` 10,00,000 each has been repaid in current
year.
3) During the year Company has issued 4,000 unlisted, non-convertible debentures of `10 lacs each aggregating
to ` 40,000. 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 debentures are secured by negative lien on fixed assets of the Company and do not carry any debt
covenant.
4) 400 Secured Zero Coupon Non Convertible Debentures of ` 10,00,000 each - Redeemable at a premium of
` 340,455 per debenture after 3 years from the date of allotment i.e. January 12, 2015. The Debentures are
unsecured and covered by corporate guarantee given by the Company.
5) Deferred payment liability represent amount payable under the memoradum of understanding (MOU) entered
into with the DRDE/DRDO of the Ministry Of Defence, Government of India for transfer of technology for
certain products. These are due for payment as per the Agreement.
6) Commercial Paper carries interest rate of 6.75 % and is repayable on June 28, 2017


(` in Lacs)
NOTE 17. Other financial liabilities
Non Current Current
2017 2016 2017 2016
Interest accrued but not due - - 6,221.35 1,904.22 11,810.95 388.05
on loans
Security deposits - - - 40.09 33.65 63.09
Unclaimed dividend * - - - 106.49 139.28 53.34
Creditors for capital goods - - 75.81 19.10 98.39 186.27
Current maturities of Long - - - 44,355.00 44,355.00 12,035.00
Term Borrowings (Note 16)#
- - 6,297.16 46,424.90 56,437.27 12,725.75
* There are no amounts payable / due to be credited to Investor Education and Protection Fund.
# Refer Note 15 above. As the holder of debentures have a put option at the end of 12 months from the date of
allotment i.e December 9, 2016 and on the last day of every calendar month thereafter, the entire amount of
debentures have been disclosed as current maturities in the current year.
Break up of financial liabilities carried at amortised cost
Borrowing (Note 16) 552.44 727.44 44,902.44 4,919.04 - -
Other financial liabilities - - 6,297.16 46,424.90 56,437.27 12,725.75
(Note 17)
Trade payable (Note 20) - - - 14,898.05 16,115.14 13,246.79
Total financial liabilities 552.44 727.44 51,199.60 66,241.99 72,552.41 25,972.54
NOTE 18. Provisions

Non Current Current
2017 2016 2017 2016
Provision for employee
benefits
Provision for leave - - - 1,009.75 830.90 797.74
encashment
Provision for gratuity 2,296.08 1,776.65 1,370.42 29.43 13.47 10.45
(Note 33)
2,296.08 1,776.65 1,370.42 1,039.18 844.37 808.19
Other provisions# - - - 2,179.76 2,179.76 2,184.32
2,296.08 1,776.65 1,370.42 3,218.94 3,024.13 2,992.51

# Movement in other provisions
As at 1st April 2,179.76 2,184.32
Arising during the year 300.00 -
Reversal during the year (300.00) (4.56)
As at 31st March 2,179.76 2,179.76

(` in Lacs)
NOTE 19. Deferred tax liabilities/ (assets) (net)
As at As at As at
a) Deferred tax liability
Depreciation 6,207.67 6,016.66 5,642.80
Freehold Land 351.29 353.64 356.76
Fair value adjustments 69.55 80.70 100.73
(A) 6,628.51 6,451.00 6,100.29
b) Deferred tax assets
Provision for gratuity 797.95 610.35 468.58
Provision for leave encashment 346.17 280.44 269.73
Provision for doubtful debts 406.42 113.44 113.45
Provision for doubtful advances 652.49 537.97 567.62
Other provisions 752.93 568.27 568.27
Other disallowances 74.79 94.73 96.68
On carry forward loss and unabsorbed depreciation * 2,905.80 152.92 5,363.71
(B) 5,936.55 2,358.12 7,448.04
Deferred tax liabilities/ (assets) (net) (A-B ) 691.96 4,092.88 (1,347.75)
* Refer Note 53 on merger of JCPML. From the effective date of the merger, the conditions of reasonable
certainty for utilisation of unused tax losses of JCPML are met in accordance with the Ind AS 12 Income Taxes and
accordingly the Company has recognised deferred tax assets on these losses.
NOTE 20. Trade payables

As at As at As at
Total outstanding dues of micro enterprises and 2,794.55 4,718.54 3,742.80
small enterprises (refer note 47 for details of dues to
micro and small enterprises)
Total outstanding dues of creditors other than micro 6,407.85 5,590.95 4,257.19
enterprises and small enterprises
Accrual for expenses 5,695.65 5,805.65 5,246.80
14,898.05 16,115.14 13,246.79
Terms and conditions of financial liabilities:
1) Trade payables are non-interest bearing and are normally settled on 30-60 days term.
2) Other payable are non interest bearing and are settled within a year.
3) Interest payable is settled as per the term of borrowings.
For explanation on the Group’s credit risk management processes, refer Note 51.
NOTE 21. Tax liabilities (net)

Non Current Current
2017 2016 2017 2016
Provision for income tax (net - - - 299.01 534.48 374.88
of advance tax of `3,131.28
(2016 ` 3,777.52, 2015 `
2,700.12))
- - - 299.01 534.48 374.88


(` in Lacs)
NOTE 22. Other liabilities
Non Current Current
2017 2016 2017 2016
Statutory Dues - - - 2,081.42 1,952.29 1,696.04
Advances from customers - - - 369.80 614.28 212.43
Advances towards assets - - - 20.00 20.00 95.84
held for sale
Provision for sales promotion - - - 1,993.97 1,780.44 1,018.70
schemes
- - - 4,465.19 4,367.01 3,023.01
NOTE 23. Revenue from operations

March 31, 2017 March 31, 2016
Sale of goods (including excise duty) 1,70,321.53 1,61,462.09
Sale of Services 4,414.01 4,305.94
Other Operating Income
Export incentives 37.31 22.10
Agricultural Income 6.92 6.05
Sale of scrap 32.83 35.04
Others 105.89 120.20
1,74,918.49 1,65,951.42
Sale of goods includes excise duty collected from customer of `6,453.30 ( March 31,2016 - `5,965.53). Sale of
goods net of excise duty is `163,868.23 ( March 31, 2016 - `155,496.56).
NOTE 24. Other Income

March 31, 2017 March 31, 2016
Lease rent income 5.37 8.52
Profit on sale of fixed assets 7.38 48.90
Foreign exchange fluctuation gain (net) 58.54 14.47
Profit on sale of current investments 125.92 638.78
Gain on financial assets fair valued through profit or loss 109.48 245.15
Miscellaneous income 43.95 38.54
350.64 994.36
NOTE 25. Finance income

March 31, 2017 March 31, 2016
Interest on fixed deposit 650.68 426.39
Interest on Others 67.03 10.50
717.71 436.89

(` in Lacs)
NOTE 26. Cost of Raw Materials and Components consumed
March 31, 2017 March 31, 2016
Inventory at the beginning of the year 5,034.18 5,238.99
Add: Purchases 52,792.87 49,458.10
57,827.05 54,697.09
Less: Inventory at the end of the year 5,402.51 5,034.18
52,424.54 49,662.91
NOTE 27. (Increase)/decrease in inventories of finished goods, work-in- progress and traded goods
March 31, 2017 March 31, 2016
Closing Inventory
Traded Goods 3,437.89 3,154.31
13,401.59 12,791.47
Opening inventory
Traded Goods 3,154.31 4,113.09
12,791.47 12,879.49
Sub-total (A) (610.12) 88.02
(Increase)/decrease in excise duty
Excise duty on closing inventory 180.39 175.78
Excise duty on opening inventory 175.78 148.50
Sub-total (B) (4.61) (27.28)
Total (A-B) (605.51) 115.30
NOTE 28. Employee benefits expense

March 31, 2017 March 31, 2016
Employee benefits expenses
Salaries, wages and bonus 13,870.05 12,609.16
Contribution to provident and other funds 1,007.72 973.35
Gratuity (Note 33) 364.29 310.70
Staff welfare expenses 704.37 702.24
Directors' remuneration (Note 35) 1,067.00 1,509.97
Field staff incentives 275.00 370.57
Sub-total (A) 17,288.43 16,475.99
Employee stock option expenses (Note 40) 236.30 1,627.83
Sub-total (B) 236.30 1,627.83
Total (A+B) 17,524.73 18,103.82


(` in Lacs)
NOTE 29. Depreciation and amortization expense
March 31, 2017 March 31, 2016
Depreciation on tangible assets 2,893.32 3,044.64
Amortization of intangible assets 112.23 95.51
3,005.55 3,140.15
NOTE 30. Finance Cost

March 31, 2017 March 31, 2016
Interest on term loan and bank overdraft 794.84 126.75
Redemption premium / Interest accrued on debentures 4,724.38 6,028.70
Other borrowing cost 127.43 28.45
5,646.65 6,183.90
NOTE 31. Other expenses

March 31, 2017 March 31, 2016
Conversion charges 996.33 863.74
Power and fuel expenses 2,700.47 2,650.32
Rent 2,184.91 2,097.81
Insurance 127.71 102.88
Repairs and maintenance
- Building 99.07 124.23
- Plant and machinery 291.55 293.10
- Others 285.78 274.40
Consumption of stores and spares 635.28 733.15
Research and development 109.99 150.35
Printing and stationery 78.18 98.33
Communication costs 342.21 349.93
Legal and professional fees (Note 44) 1,280.52 1,231.46
Rates and taxes 629.62 630.20
Directors' sitting fees 5.85 7.70
Vehicle maintenance 363.23 344.12
Donation 6.18 6.61
Loss on fixed assets discarded / sold 87.60 115.08
Bad debt written off 35.53 -
Advertisement and Sales Promotion expense 11,852.61 11,795.34
Freight, handling and forwarding charges 10,088.97 9,580.79
Field staff expenses 1,498.76 1,411.41
Travelling and conveyance 522.19 410.31
Loss on sale of asset held for sale 18.20 -
Royalty 287.94 288.33
Corporate social responsibility expenses (Note 36) 244.43 234.84
Miscellaneous expenses 1,085.72 1,477.12
35,913.83 35,365.46

(` in Lacs)
NOTE 32. Income tax
March 31, 2017 March 31, 2016
The major components of income tax expense for the years ended March
31, 2017 and March 31, 2016 are :
a. Profit or loss section
Income tax expense
Current tax (MAT) 3,435.30 4,304.60
Current income tax expense 4.34 1,454.35
Deferred tax relating to origination and reversal of temporary differences (3,339.80) 5,474.27
(2,550.19) 6,928.62
b. OCI Section
Deferred tax related to items recognised in OCI during the year :
Net loss /(gain) on remeasurements of defined benefit plans 61.12 33.64
61.12 33.64
c. Reconciliation of tax expense and accounting profit multiplied by
India’s domestic tax rate
Accounting profit before tax 17,865.07 14,310.61
Tax rate 34.608% 34.608%
Tax at statutory rate 6,182.74 4,952.62
Less:
Deferred tax assets created pursuant to merger of JCPML ( note 53) (9,579.80) -
Tax benefits under Section 80IB/80IC/80IE of the Income Tax Act, 1961 (371.97) (847.81)
CSR Expense disallowed 84.59 81.27
Tax benefit no longer available 785.27 1,003.63
Non deductible tax loss of subsidiaries 500.25 1,869.91
Others (151.27) (131.00)
Adjusted tax expense (2,550.19) 6,928.62
Tax expense (2,550.19) 6,928.62
d. Reconciliation of deferred tax liabilities / (assets) net
Opening balance as of 1st April 4,092.88 (1,347.75)
Tax (income) / expense during the year recognised in profit or loss (3,339.80) 5,474.27
Tax (income) / expense during the year recognised in OCI (61.12) (33.64)
Closing balance as at 31st March 691.96 4,092.88
e. Unrecognised deferred tax assets

As at March 31, 2017 the Company does not have any unrecognised deferred tax assets. As at March 31, 2016 and
April 1, 2015, unrecognised deferred tax assets amounted to Rs 9,190.37 and Rs 10,283.04 respectively, on unused
carry forward losses of JCPML. Pursuant to merger of JCPML, in the current year, the conditions of reasonable
certanity for utilisation of unused losses as per IND-AS 12- ‘Income taxes’ are met on the effective date of the
merger and accordingly, the deferred tax assets have been recognised.
Deferred tax assets have not been recognised in respect of losses in other subsidiaries as they cannot be used to
offset taxable profits else where in the group and there are no other tax planning opportunities or other evidence
of recoverability in the near future.


(` in Lacs)
These unreocgnised deferred tax assets of these subsidiaries as at the reporting dates are as given below:-
Mar-17 Mar-16 Mar-15
Gross Tax Gross Tax Gross Tax
Amount Amount Amount
Tax Losses 13,620.23 4,713.70 12,290.31 4,253.44 10,203.13 3,531.10
Breakup of Tax losses

As at 31 March 2017 Expiry As at 31 March 2016 Expiry As at 31 March 2015 Expiry
Date (As- Date Date (As-
Gross Unrecog- Gross Unrecog- Gross Unrecog-
sessment sessment
amount nised Tax amount nised Tax amount nised Tax
Year) Year)
effect effect effect
Brought forward 552.36 191.16 2018-19 305.62 105.77 2017-18 305.62 105.77 2017-18
losses (allowed to
carry forward for
specific period )
Brought forward 1,105.16 382.47 2019-20 552.36 191.16 2018-19 552.36 191.16 2018-19
losses (allowed to
carry forward for
specific period )
Brought forward 1,924.75 666.12 2020-21 1,105.16 382.47 2019-20 1,105.16 382.47 2019-20
losses (allowed to
carry forward for
specific period )
Brought forward 2,036.75 704.88 2021-22 1,924.75 666.12 2020-21 1,924.75 666.12 2020-21
losses (allowed to
carry forward for
specific period )
Brought forward 2,264.44 783.68 2022-23 2,036.75 704.88 2021-22 2,036.75 704.88 2021-22
losses (allowed to
carry forward for
specific period )
Brought forward 1,701.24 588.77 2023-24 2,264.44 783.68 2022-23 2,264.44 783.68 2022-23
losses (allowed to
carry forward for
specific period )
Brought forward 1,060.00 366.85 2024-25 1,701.24 588.77 2023-24 - -
losses (allowed to
carry forward for
specific period )
Brought forward 2,975.53 1,029.77 2,399.99 830.59 2,014.05 697.02
losses (allowed to
carry forward for
infinite period )
13,620.23 4,713.70 12,290.31 4,253.44 10,203.13 3,531.10
The above information is upto the last return of income filed by the subsidiaries.
Further, as at 31st March 2017, there was no recognised deferred tax liability (2016 - ` Nil, 2015 - ` Nil) for taxes that
would be payable on the unremitted earnings of certain of the Group’s subsidiaries. The Group has determined
that undistributed profits of the subsidiaries will not be distributed in the foreseeable future.
NOTE 33. Gratuity

The Group 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(LIC). Every year the Group makes contribution to fund determined
based on actuarial valutation done by LIC.
The following tables summarise the components of net benefit expense recognised in the Consolidated Statement
profit and loss and the funded status and amounts recognised in the balance sheet for the respective plans.

(` in Lacs)
March 31, 2017 March 31, 2016
Gratuity Gratuity
Funded, except for certain
subsidiaries where it is non funded
(A) Summary of the Actuarial Assumptions
Mortality Indian Assured Indian Assured
Lives Mortality Lives Mortality
(2006-08) Ult (2006-08) Ult
Discount rate 6.9% - 7.1% 7.80%
Rate of increase in compensation 8.00% 8.00%
Withdrawal rates 10% - 15% 10%
The estimates of future salary increases, considered in actuarial valuation
take account of inflation, seniority, promotion and other relevant factors,
such as supply and demand in the employment market.
(B) Changes in present value of obligations (PVO)
PVO at beginning of period 2,161.26 2,025.17
Interest cost 168.46 158.51
Current Service Cost 224.77 202.24
Benefits Paid (71.41) (338.04)
Remeasurement gains/(losses) arising from changes in demographic (5.12) (2.92)
assumptions
Remeasurement gains/(losses) arising from changes in financial 121.98 3.87
assumptions
PVO at end of period 2,653.52 2,161.26
(C) Changes in fair value of plan assets
Fair value of plan assets at the beginning of period 371.14 644.30
Investment Income 28.93 47.11
Contributions - 7.99
Benefit paid (58.13) (307.42)
Return on plan assets (13.93) (20.84)
Fair value of plan assets at end of period 328.01 371.14
(D) Expenses recognised in the statement of profit and loss
Current service cost 224.77 202.24
Net Interest cost on the Net Defined Benefit Liability / (Asset) 139.52 108.46
Expense recognised in the statement of profit and loss 364.29 310.70
(E) Remeasurement gains/(losses) in other comprehensive income
Return on plan assets 13.93 20.84
Remeasurement gains/(losses) arising from changes in demographic (5.12) (2.92)
assumptions
Remeasurement gains/(losses) arising from changes in financial 121.98 3.87
assumptions
Total amount recoginsed in OCI 184.37 134.22
(F) The major categories of plan assets as a percentage of the fair value
of total plan assets are as follows:
Investment with insurer 100.00% 100.00%


(` in Lacs)
(G) Net Assets/(Liabilities) recognised in the balance
sheet
PVO at end of period (2,653.52) (2,161.26) (2,025.17)
Fair value of plan assets at end of period 328.01 371.14 644.30
Funded status (deficit in fare value of plan assets (2,325.51) (1,790.12) (1,380.87)
over PVO)
Net assets / (Liability) recognised in the balance (2,325.51) (1,790.12) (1,380.87)
sheet
(H) Sensitivity analysis:
Significant actuarial assumptions for the detemination of the defined benefit obligation are discount rate, expected
salary increase and mortality. The sensitivity analysis below have been determined based on reasonably possible
changes of the assumptions occurring at the end of the reporting period, while holding all other assumptions
constant.
The results of sensitivity analysis is given below:
March 31, 2017 March 31, 2016
Defined Benefit Obligation (Base) 2,653.52 2,161.26
March 31, 2017 March 31, 2016

Decrease Increase Decrease Increase
Discount Rate (- / + 1%) 2,837.38 2,489.30 2,313.80 2,025.26
(% change compared to base due to sensitivity) 6.93% -6.19% 7.06% -6.29%
Salary Growth Rate (- / + 1%) 2,506.98 2,810.76 2,038.49 2,293.61
(% change compared to base due to sensitivity) -5.52% 5.93% -5.68% 6.12%
Attrition Rate (- / + 50% of attrition rates) 2,684.62 2,632.90 2,153.76 2,163.41
(% change compared to base due to sensitivity) 1.17% -0.78% -0.35% 0.10%
Mortality Rate (- / + 10% of mortality rates) 2,653.53 2,653.53 2,161.10 2,161.43
(% change compared to base due to sensitivity) 0.00% 0.00% -0.01% 0.01%
(I) Asset Liability Matching Strategies
The Group has purchased insurance policy, which is basically a year-on-year cash accumulation plan in which
the interest rate is declared on yearly basis and is guaranteed for a period of one year. The insurance company, as
part of the policy rules, makes payment of all gratuity outgoes happening during the year (subject to sufficiency
of funds under the policy). The policy, thus, mitigates the liquidity risk. However, being a cash accumulation plan,
the duration of assets is shorter compared to the duration of liabilities. Thus, the Group is exposed to movement
in interest rate (in particular, the significant fall in interest rates, which should result in a increase in liability without
corresponding increase in the asset).
(J) Effect of Plan on Entity’s Future Cash Flows
a) Funding arrangements and Funding Policy
The Group has purchased an insurance policy to provide for payment of gratuity to the employees. Every
year, the insurance company carries out a funding valuation based on the latest employee data provided
by the Group. Any deficit in the assets arising as a result of such valuation is funded by the Group.
b) Maturity Profile of Defined Benefit Obligation
Weighted average duration (based on discounted cashflows) 7 years
Expected cash flows over the next (valued on undiscounted basis) Amount
1 year 382.38
2 to 5 years 1,197.40
6 to 10 years 1,211.52
More than 10 years 1,831.14

(` in Lacs)
NOTE 34. Segment Reporting
Based on the “management approach” as defined in Ind AS 108 - ‘Operating Segments’, the Chief Operating
Decision Maker evaluates the Groups performance and allocate resources based on an analysis of various
performance indicators by business segments and segment information is presented accordingly as follows :
1. Dishwashing includes dish wash scrubber and scrubber steel, dish wash bar, liquid and powder.
2. Fabric Care includes fabric whitener, fabric enhancer, bar soap and detergent powder.
3. Household Insecticides includes mosquito repellent coil, liquid and card and insect repellents.
4. Personal Care includes body soap, face wash, toothpaste, deodorants, talcum powder, after shave and
moisturiser.
5. Laundry services includes drycleaning and laundry.
6. 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 Group 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 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’
column. All other adjustment and eliminations are part of detailed reconcilliation presented further below.

Dishwashing Fabric care Household Personal care Laundry Other Total Adjustments Total
insecticides services products Operating and segments
Revenue
External revenue 50,891.18 73,776.58 26,118.57 15,954.89 4,413.01 3,581.31 1,74,735.54 - 1,74,735.54
Inter segment 136.00 14.00 - 2.00 - - 152.00 (152.00) -
revenue
Total revenue 51,027.18 73,790.58 26,118.57 15,956.89 4,413.01 3,581.31 1,74,887.54 (152.00) 1,74,735.54
Income/(Expenses)
Depreciation and (178.26) (1,333.05) (399.01) (158.16) (575.60) (5.73) (2,649.81) (355.74) (3,005.55)
amortisation
Segment profit 6,467.30 15,420.76 406.72 3,024.20 (1,224.97) 165.81 24,259.82 (6,394.75) 17,865.07
Total assets 13,460.00 29,950.70 14,582.99 6,596.00 13,558.05 946.26 79,094.00 1,06,907.56 1,86,001.53
Total liabilities 5,717.66 9,024.92 5,718.30 3,217.20 738.20 280.12 24,696.40 53,069.21 77,765.58
Capital expenditure 1,860.43 1,857.84 753.20 1,070.00 139.56 33.43 5,714.46 (20.16) 5,694.30


(` in Lacs)
Revenue
External revenue 47,669.00 68,297.98 27,822.00 14,749.29 4,295.00 2,934.76 1,65,768.03 - 1,65,768.03
Inter segment - - - 18.00 - - 18.00 (18.00) -
revenue
Total revenue 47,669.00 68,297.98 27,822.00 14,767.29 4,295.00 2,934.76 1,65,786.03 (18.00) 1,65,768.03
Income/(Expenses)
Depreciation and (168.89) (1,331.13) (361.76) (133.66) (783.35) (6.35) (2,785.14) (355.01) (3,140.15)
amortisation
Segment profit 5,539.04 12,951.42 1,014.52 2,733.33 (1,476.06) 83.55 20,845.80 (6,535.19) 14,310.61
Total assets 10,938.09 25,828.68 13,957.27 5,103.50 14,412.59 870.17 71,110.30 1,05,846.62 1,76,956.92
Capital expenditure 100.37 933.36 301.91 218.50 75.37 25.93 1,655.44 929.95 2,585.39

Total assets 8,649.14 26,723.60 12,204.15 4,069.31 15,008.39 778.56 67,433.15 1,15,879.91 1,83,313.06
Reconciliations to amount reflected in the financial statements

March 31, 2017 March 31, 2016
(a) Reconciliation of profit
Segment profit 24,259.82 20,845.80
Finance Income (Note 25) 717.71 436.89
Other unallocable income 179.08 749.38
Gain on financial assets fair valued through profit or loss (Note 24) 109.48 245.15
Finance cost (Note 30) (5,646.65) (6,183.90)
Other unallocable expenses (1,754.37) (1,782.71)
Profit before tax 17,865.07 14,310.61
As at As at As at
(b) Reconciliations of assets
Segment operating assets 79,094.00 71,110.30 67,433.15
Investment (Note 5 and 12) 2,848.42 8,591.74 19,500.50
Other financial assets (Note 8) 516.03 360.75 457.97
Income tax assets (net) (Note 9) 14,413.76 12,349.99 8,472.95
Deferred tax asset (net) (Note 19) - - 1,347.75
Cash and cash equivalent 9,713.09 5,460.95 7,037.96
Other unallocable assets 1,582.89 1,424.95 1,473.34
Tangible and Intangible assets 77,833.37 77,658.24 77,589.44
Total assets 1,86,001.56 1,76,956.92 1,83,313.06

(` in Lacs)
As at As at As at
c) Reconciliations of liabilities
Segment operating liabilities 24,696.40 25,299.22 20,789.87
Deferred tax liabilities (net) (Note 19) 691.96 4092.88 -
Borrowings 49,646.48 44,902.44 56,577.44
Tax liabilities (net) (Note 21) 299.01 534.48 374.88
Interest accrued but not due on loans (Note 17) 1,904.22 11,810.95 6,609.40
Other unallocable liabilities 527.54 435.03 581.37

March 31, 2017 March 31, 2016
Revenue from external customers
India 1,70,204.30 1,61,577.66
Outside India 4,531.24 4,190.37
Total revenue as per consolidated statement of profit or loss 1,74,735.54 1,65,768.03
The revenue information above is based on the location of the customers.
Revenue from one customer amounted to `21,798.02 ( March 31, 2016 - `19,632.57), arising from sales in various
segment.
As at As at As at
Non-current operating assets
India 1,10,458.46 1,07,361.59 1,08,744.34
Outside India 120.90 208.33 277.37
Total 1,10,579.36 1,07,569.92 1,09,021.71
Non-current assets for this purpose consist of property, plant and equiment and intangible assets.
NOTE 35. Related Party Disclosures

a) Parties where control exists
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.
b) 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.
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
K. Ullas Kamath Joint Managing Director & CFO
S. Raghunandan Whole Time Director & CEO upto May 23, 2016
Rajnikant Sabnavis Chief Operating Officer from 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
(` in Lacs)
March 31, 2017 March 31, 2016
M.P. Ramachandran
Remuneration* Re.1 only Re.1 only
Commission 358.83 421.04
Dividend 723.12 5,768.96
Dividend 150.00 1,200.00
Quilon Trading Company
Rent Paid 1.20 1.20
Dividend 19.04 152.32
Dividend 13.20 105.60
Relatives of individuals having control
Remuneration*
M R Jyothy 131.76 102.48
M P Sidharthan 24.00 24.00
M R Deepthy 47.71 37.51
Ananth Rao T 57.12 45.03
Ravi Razdan 47.71 37.51
M. P. Divakaran 24.00 24.00
Dividend 290.94 2,327.52
Remuneration*#
S. Raghunandan 1,515.66 485.12
M.L. Bansal 9.71 41.97
Rajnikant Sabnavis 383.79 -
Shreyas Trivedi 58.38 -
Dividend

(` in Lacs)
March 31, 2017 March 31, 2016
S. Raghunandan - 15.63
Contribution to Superannuation fund
Fee for attending board / committee meetings
Bipin R. Shah 0.60 1.35
Commission
Bipin R. Shah - 8.00
* As the future liabilities for gratuity is provided on an actuarial basis for the Company as a whole, the amount
pertaining to individual is not ascertainable and therefore not included above.
# In the earlier years, Company had applied to the Central Government for approval of grant of ESOP’s to a whole
time director and CEO, as the value of the ESOP’s granted were expected to be in excess of the eligible limits
under the Companies Act, 1956. During the year, certain ESOP’s have been exercised by the Director (452,558
shares issued) and as managerial remuneration includes perquisite value of ESOP’s in the year it is exercised, the
overall value of Managerial Remuneration for the current year is in excess of the limits to the extent of Rs.783.64
lacs. Subsequent to the year end, the Company has received an approval from the Central Government for an
amount that can be paid to the director for the three years ending May 2017, however, the said ESOP’s have not
been considered separately. The Company has now filed an application seeking approval of grant of ESOP’s again.
Pending such approval, the shares issued to the managerial person are held by him in trust as he continues to be
the employee of the Company though no longer a Director. In case the revised application is not approved, the
Company plans to recover the excess amount paid through balance stock options yet to be exercised by the said
employee.
As at As at As at
d) Related party balances
Amounts payable
Trade payables :
M.P. Ramachandran 358.83 421.04 312.69
K. Ullas Kamath 322.94 378.93 281.42
Bipin R. Shah - 8.00 8.00
Nilesh B. Mehta 8.00 8.00 8.00
R. Lakshminarayanan 8.00 8.00 8.00
K. P. Padmakumar 8.00 8.00 8.00
Terms and conditions of transactions with related parties
The Sales to / purchases from related parties are made on terms equivalent to those that prevail in arm’s length transactions
and outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash. There have been no
guarantees provided or received for any related party receivables or payables.


(` in Lacs)
NOTE 36. Expenditure related to corporate social responsibility as per Section 135 of the Companies Act, 2013
read with Schedule VII is as given below:
Particulars April 1, 2016 to March 31, 2017 April 1, 2015 to March 31, 2016
(a) Gross amount required to 294.10 195.30
be spent during the year
In Cash Yet to be Total In Cash Yet to be Total
paid in cash paid in cash
(b) Amount spend during the
year : -
Promoting preventing health - - - 44.28 - 44.28
care and sanitation
Contribution to various 0.40 - 0.40 5.00 - 5.00
educational institutions
Rural/slum area 53.32 - 53.32 185.56 - 185.56
development
Contribution to 25.00 - 25.00 - - -
Mathrubhumi Mission
Medical College
Imparting Skill Development 163.99 - 163.99 - - -
Training
Others 1.72 - 1.72 - - -
Total 244.43 - 244.43 234.84 - 234.84
NOTE 37. Commitments and contingencies

Operating leases
In case of assets taken on lease
The Group 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 `2,184.91 (2016 - `2,097.81). There are no restrictions imposed by lease arrangements. There are no
subleases.
As at As at As at
Future lease payment under non - cancellable
operating leases are as follows:
Payable not later than one year 299.79 329.50 167.93
Payable later than one year and not later than five 831.08 718.09 57.54
years
Payable later than five years - 104.51 -
1,130.87 1,152.10 225.47
In case of assets given on lease
The Group has leased out few of its premises on operating lease. The gross carrying amount and accumulated
depreciation as at March 31, 2017 is ` 178.06 and ` 22.83 (2016 - `178.06 and ` 11.44) respectively. Lease rent
income for the year ended March 31, 2017 was `5.37 (2016 – `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.

(` in Lacs)
NOTE 38. Contingent liabilities
In respect of the following, the Group has assessed that it is only possible, but not probable, that outflow of
economic resources will be required :
As at As at As at
(i) Tax matters
(a) Disputed sales tax demands – matters under 2,554.15 2,429.72 2,329.45
appeal
(b) Disputed excise duty and service tax demand 5,034.60 4,059.59 3,103.15
- matter under appeal
(c) Disputed income tax demand - matter under 3,172.93 6,733.15 3,741.60
appeal*
(ii) Other statutory dues 1.11 4.94 7.72
(iii) Claims against the Group not acknowledged as 226.67 226.67 -
debts.
* 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.
The above disclosure does not cover matters where the exposure has been assessed to be remote.
NOTE 39. Capital commitments (net of advances)

As at As at As at
Estimated amount of contracts remaining to be 622.89 1,065.67 508.90
executed on capital account and not provided for
622.89 1,065.67 508.90
NOTE 40. Share-based payments

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 :
Particulars (“ESOS -2014”) (“ESOS -2014”) (“ESOS -2014 - A”)

Date of Grant August 16, 2014 January 27, 2015 August 16, 2014
Number of options granted 5,03,445 34,507 27,15,352
Vesting period 33% - Year 1 33% - Year 1 66.67% - Year 1
33% - Year 2 33% - Year 2 16.67% - Year 2
34% - Year 3 34% - Year 3 16.66% - Year 3
Exercise period 5 years from the respective dates of vesting
Exercise Price - Per share `1 `1 `1
Market price at grant date - Per share `188.70 `289.80 `188.70
The fair value of option granted is estimated at the grant date using Black Scholes valuation model, taking into
account the term and conditions upon which the share options were granted.


NOTE 40. Share-based payments (contd.)
The following table illustrates the number and movements in share options during the year :
Particulars (“ESOS -2014”) (“ESOS -2014”) (“ESOS -2014 - A”)

Outstanding at April 1, 2015 4,50,451 34,507 27,15,352
Cancelled during 2015-16 87,970 34,507 4,52,559
Exercised during 2015-16 96,184 - -
Outstanding at April 1, 2016 2,66,297 - 22,62,793

Cancelled during 2016-17 19,674 - -
Exercised during 2016-17 1,11,486 - 4,52,558
For option exercised during the period, the weighted average share price at the exercise date was `324.38 per
share (2016 - `297.94)
No new stock option have been granted by the company in the current year.
The following table list inputs to the models used for the year ended March 31, 2017 and March 31, 2016 :
Variables (“ESOS -2014”)- Grant – I

Volatility 36.19% 37.32% 40.33%
Riskfree Rate 8.73% 8.72% 8.72%
Exercise Price (`) 1.00 1.00 1.00
Option fair Value vest wise of per stock option 177.75 174.99 172.27
granted (`)
Variables (“ESOS -2014 - A”)

Volatility 36.19% 37.32% 40.33%
Riskfree Rate 8.73% 8.72% 8.72%
Exercise Price (`) 1.00 1.00 1.00
Option fair Value vest wise of per stock option 177.75 174.99 172.27
granted (`)
The expected volatility reflects the assumption that the historical volatility over a period similar to the life of the
options is indicative of future trends, which may not necessarily be the actual outcome.

(` in Lacs)
NOTE 41. Information required for consolidated financial statements pursuant to Schedule III of Companies Act,
2013
information available with the Group.
31-Mar-17
Net Assets, i.e. Total Share in profit and loss Share in other Share in total
Asset minus Total comprehensive income comprehensive income
Liabilities
As % of Amount As % of Amount As % of Amount As % of Amount
Consoli- Consolidat- Consoli- Consoli-
dated net ed profit or dated other dated total
assets loss compre- compre-
hensive hensive
income income
Parent
Jyothy Laboratories Limited 90.73% 98,800.63 107.75% 21,995.80 93.71% (115.50) 107.82% 21,880.30
Subsidiaries
Indian
Jyothy Fabricare Services 7.47% 8,131.58 (5.73%) (1,170.04) 4.74% (5.85) (5.79%) (1,175.89)
Limited
Snoways Laundrers & 0.17% 189.88 0.00% (0.55) - - 0.00% (0.55)
Drycleaners Private Limited
Four Seasons Drycleaning 0.12% 134.06 (0.15%) (29.68) - - (0.15%) (29.68)
M/s JFSL JLL JV (Partnership 0.30% 323.66 0.07% 14.72 - - 0.07% 14.72
Firm)
Foreign
Jyothy Kallol Bangladesh 0.60% 656.14 0.01% 2.37 (0.01%) 0.02 0.01% 2.39
Limited
Non controlling interest 0.61% 665.15 (1.95%) (397.36) 1.56% (1.92) (1.97%) (399.28)
Grand Total 100.00% 1,08,901.10 100.00% 20,415.26 100.00% (123.25) 100.00% 20,292.01


(` in Lacs)
31-Mar-16
Net Assets, i.e. Total Asset Share in profit and loss Share in other Share in total
minus Total Liabilities comprehensive income comprehensive income
As % of Amount As % of Amount As % of Amount As % of Amount
Consoli- Consolidat- Consoli- Consoli-
dated net ed profit or dated other dated total
assets loss compre- compre-
hensive hensive
income income
Parent
Jyothy Laboratories Limited 87.47% 78,856.75 123.94% 9,149.53 59.35% (59.69) 124.84% 9,089.84
Subsidiaries
Indian
Jyothy Fabricare Services 11.04% 9,956.57 (17.67%) (1,304.52) 30.57% (30.75) (18.34%) (1,335.27)
Limited
Snoways Laundrers & 0.21% 190.43 (0.01%) (0.55) - - (0.01%) (0.55)
Drycleaners Private Limited
Four Seasons Drycleaning (0.10%) (99.89) (0.52%) (38.72) - - (0.53%) (38.72)
M/s JFSL JLL JV (Partnership 0.36% 321.35 (0.63%) (46.85) - - (0.64%) (46.85)
Firm)
Foreign
Jyothy Kallol Bangladesh 0.73% 656.71 0.66% 48.85 (0.01%) 0.01 0.67% 48.86
Limited
Non controlling interest 0.29% 265.87 (5.77%) (425.75) 10.09% (10.15) (5.99%) (435.90)
Grand Total 100.00% 90,147.79 100.00% 7,381.99 100.00% (100.58) 100.00% 7,281.41
Net assets and share of profits and losses reported in the above table have been considered from the respective
audited financial statements after making necessary changes for consolidation adjustments having impact on the
consolidated net assets and net profits.
NOTE 42
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 ` 958.87 (2016 - ` 940.48 ) in the current year.
NOTE 43
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 yea 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 upto 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.

(` in Lacs)
NOTE 44. Payment to auditors
March 31, 2017 March 31, 2016
Payment to auditors (excluding service tax)
As Auditors
Audit fee 93.35 79.10
Tax audit fees 9.00 9.70
Limited review 26.40 26.00
In other capacity (Certification ) 2.65 4.60
Total 136.83 124.75
NOTE 45
Details of Specified Bank Notes (SBN) held and transacted during the period from 8th November, 2016 to 30th
December, 2016 as per MCA notification no G.S.R. 308 (‘E) dated March 31st, 2017 is as provided in the table
below:-
SBNs Other Total
Denomination
notes
Closing cash in hand as on 08.11.2016 57.79 9.11 66.90
Add: Withdrawal from Bank accounts - 41.35 41.35
Add: Permitted receipts - 242.32 242.32
Less: Paid for Permitted payments - (41.97) (41.97)
Less: Amount deposited in Banks (57.79) (205.46) (263.25)
Closing cash in hand as on 30.12.2016 - 45.35 45.35
The above information has been determined on the basis of the information available with the Group.
NOTE 46. Earnings per share

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the parent by
the weighted average number of Equity shares outstanding during the year.
Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the parent by the
weighted average number of Equity shares outstanding during the year plus the weighted average number of
Equity shares that would be issued on conversion of all the dilutive potential Equity shares into Equity shares.
The following reflects the income and share data used in the basic and diluted EPS computations:

March 31, 2017 March 31, 2016
Net Profit for calculation of basic and diluted EPS 20,415.26 7,381.99
Weighted average number of shares for calculation of basic EPS 18,14,06,238 18,10,77,764
Effect of dilution :
Stock options outstanding 1,26,449 25,06,850
Weighted average number of shares for calculation of diluted EPS 18,15,32,687 18,35,84,614
Basic EPS (Rs) 11.24 4.08
Diluted EPS (Rs) 11.24 4.02


(` in Lacs)
NOTE 47. Micro, small and medium enterprises development Act, 2006 ( ‘MSMED’)
The disclosure pursuant to the said Act is as under :
As at As at As at
Principal amount due to suppliers under MSMED Act 2,794.55 4,718.54 3,742.80
Interest accrued and due to suppliers under Section 7.08 4.97 4.05
16 of MSMED Act, 2006 on the above amount,
unpaid
Interest paid to suppliers under the MSMED Act - - -
Interest due and payable towards suppliers under - - -
MSMED Act towards payment already made
Interest accrued and remaining unpaid at the end of 7.08 4.97 4.05
accounting year
information available with the Group.
NOTE 48. Significant accounting judgements, estimates and assumptions

The preparation of the Group’s financial statements requires management to make judgements, 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.
a) Judgements
In the process of applying the Group’s accounting policies, management has made the following judgements,
which have the most significant effect on the amounts recognised in the financial statements:
Balance with government authorities and protest payment
The Group 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 Honourable
Supreme Court / High Court in these matters and accordingly assessed that all the amounts are fully recoverable.
b) 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 Group 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 Group. 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
Group 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

(` in Lacs)
NOTE 48. Significant accounting judgements, estimates and assumptions (contd.)
inputs for these valuations are taken from observable sources where possible, but where this is not feasible, a
degree of judgement is required in establishing fair values. Judgements include considerations of various inputs
including liquidity risk, credit risk , volatility etc. Changes in assumptions/judgements 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 40.
Taxes
Deferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable profit will be
available against which the losses can be utilised. Significant management judgement is required to determine the
amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable
profits together with future tax planning strategies.
Further, the Group has recognised Minimum Alternate Tax (MAT) which can be utilised 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 Group has
assessed that the entire MAT credit can be utilised.
NOTE 49. Fair values

Set out below, is a comparison by class of the carrying amounts and fair value of the Group’s financial instruments,
other than those with carrying amounts that are reasonable approximations of fair values:
(` in Lacs)
Carrying values Fair values
2017 2016 2017 2016
Financial Assets
Investment 2,845.83 8,589.15 19,497.57 2,845.83 8,589.15 19,497.57
Deposits 901.68 804.18 815.32 901.68 804.18 815.32
Total 3,747.51 9,393.33 20,312.89 3,747.51 9,393.33 20,312.89
Borrowings 49,826.48 45,082.44 56,937.44 49,826.48 45,082.44 56,937.44
Total 49,826.48 45,082.44 56,937.44 49,826.48 45,082.44 56,937.44


(` in Lacs)
NOTE 49. Fair values (contd.)
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 Group 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 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.
NOTE 50. Fair values hierarchy

The following table provides the fair value measurement hierarchy of the Group’s assets and liabilities:
Quantitative disclosures fair value measurement hierarchy for assets :
Particulars Date of Total Quoted prices Significant Significant
valuation in active mar- Observable Unobservable
kets Inputs Inputs
(Level 1) (Level 2) (Level 3)
Fair value of financial assets disclosed
March 31, 2017 2,845.83 2,845.83 - -
Investment March 31, 2016 8,589.15 8,589.15 - -
April 1, 2015 19,497.57 19,497.57 - -
There have been no transfers between Level 1 and Level 2 during the period.
The Group does not have any financial liabilities fair valued through profit & loss.
NOTE 51. Financial risk management objectives and policies

The Group’s business activities are exposed to a variety of financial risks, namely liquidity risk, market risks and
credit risk. The Group’s senior management has the overall responsibility for establishing and governing the
Group’s risk management framework. The Group has constituted a core Management Committee, which is
responsible for developing and monitoring the Group’s risk management policies. The Group’s risk management
policies are established to identify and analyse the risks faced by the Group, 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.
A. Liquidity risk
Liquidity risk is the risk that the Group will face in meeting its obligations associated with its financial liabilities. The
Group’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 Group 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 Group 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 optimise the
cash returns on investments while ensuring sufficient liquidity to meet its liabilities.
For long term borrowings, the Group also focuses on maintaining / improving its credit ratings to ensure that
appropriate refinancing options are available on the respective due dates The table below summarises the maturity
profile of the Group’s financial liabilities based on contractual undiscounted payments.

(` in Lacs)
NOTE 51. Financial risk management objectives and policies (contd.)
Particulars Less than 1 1 to 5 years 5 years and Total
Year above
Borrowings and Other financial liabilities * 31,343.94 20,552.44 - 51,896.38
46,241.99 20,552.44 - 66,794.43
Borrowings and Other financial liabilities 56,437.27 667.44 60.00 57,164.71
72,552.41 667.44 60.00 73,279.85
As at April 01, 2015
Borrowings and Other financial liabilities 16,529.18 47,161.17 235.00 63,925.35
29,775.97 47,161.17 235.00 77,172.14
* The above disclosure has been made as per the contractual due dates of the borrowings, however, due to the
put option available to the holder (Note 16), the same has been presented as current maturities in the financial
statements.
B. 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 Group. 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 Group is not exposed to significant foreign currency risk as at the
respective reporting dates.
Price risk
The Group 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. The Group has internal guidelines to ensure
that the price risk arising from investment in mutual fund is kept minimal.
C. 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 Group 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 Group’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 Group in accordance with the
Group’s policy. Investments of surplus funds are made only in highly marketable debt instruments with appropriate
maturities to optimise the cash return on instruments while ensuring sufficient liquidity to meet its liabilities.
D. 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.


(` in Lacs)
NOTE 51. Financial risk management objectives and policies (contd.)
Concentrations indicate the relative sensitivity of the Group’s performance to developments affecting a particular
industry.
In order to avoid excessive concentrations of risk, the Group’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.
NOTE 52. Capital management

For the purpose of the Group capital management, capital includes issued equity capital and other equity reserves
attributable to the equity holders of the Group. The primary objective of the Group’s capital management is to
maximise the shareholder value.
The Group manages its capital so as to safeguard its ability to continue as a going concern and to optimise returns
to shareholders. The capital structure of the Group is based on management’s judgement of its strategic and day-
to-day needs with a focus on total equity so as to maintain investor, creditors and market confidence.
The Group monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt is
calculated as borrowing less cash and cash equivalent, other bank balances and mutual fund investments.
As at As at As at
Borrowings 49,826.48 45,082.44 56,937.44
Less: Cash and cash equivalents (Note 12, 13a and (13,189.91) (14,708.98) (26,961.32)
13b)
Net debt (A) 36,636.57 30,373.46 29,976.12
Equity 1,08,901.10 90,147.79 98,236.36
Capital and net debt (B) 1,45,537.67 1,20,521.25 1,28,212.48
Gearing ratio (A/B) 25% 25% 23%
No changes were made in the objectives, policies or processes for managing capital during the years ended 31
March 2017 and 31 March 2016.
NOTE 53
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. there is no impact of the merger on consolidated financial statements of the Group
as JCPML was already consolidated in earlier years.
NOTE 54. First-time adoption of Ind AS

These financial statements, for the year ended 31 March 2017, are the first the Group has prepared in accordance
with Ind AS. For periods up to and including the year ended 31 March 2016, the Group 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) as amended.
Accordingly, the Group 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 Group’s
opening balance sheet was prepared as at 1 April 2015, the Group date of transition to Ind AS. This note explains
the principal adjustments made by the Group 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.

(` in Lacs)
NOTE 54. First-time adoption of Ind AS (contd.)
Exemptions applied
Ind AS 101 allows first-time adopters certain exemptions from the retrospective application of certain requirements
under Ind AS. The Group 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 liabilites 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 Group has elected to continue with the carrying value for all of its property, plant and equipment including
intangibles as recognised 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 Group 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 embeded leases.
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).
Non Controling Interest
The Group has carried the carrying amount of non-controling interest recognised under previous GAAP as at
the date of transition to IND AS and will apply the requirement of IND AS 110, ‘Consolidated Financial Statements’
applicable to non controling interest prospectively from the date of transition to IND AS.


Reconciliation of equity as at 1st April 2015 (date of transition to Ind-AS)
(` in Lacs)
Footnotes Indian GAAP Ind AS Adjustments Ind AS
Assets
Non-current assets
Property, plant and equipment 28,379.57 - 28,379.57
Capital work in progress 1,611.13 - 1,611.13
Goodwill 78,633.19 - 78,633.19
Other Intangible assets 397.82 - 397.82
Financial assets
Investments 2.59 - 2.59
Loans 1 916.48 (101.16) 815.32
Other financial assets 622.94 - 622.94
Income tax assets (net) 8,472.95 - 8,472.95
Deferred tax assets (net) 5 (54.27) 1,402.02 1,347.75
Other assets 1 7,923.43 74.23 7,997.66
1,26,905.83 1,375.09 1,28,280.92
Current assets
Inventories 18,814.97 - 18,814.97
Financial assets
Investments 2 19,201.64 295.93 19,497.57
Loans 1 163.70 (0.87) 162.83
Trade receivables 5,741.90 - 5,741.90
Cash and cash equivalent 2,575.06 - 2,575.06
Other bank balances 4,888.69 - 4,888.69
Other assets 1 2,899.32 23.64 2,922.96
54,713.44 318.70 55,032.14
Total assets 1,81,619.27 1,693.79 1,83,313.06

Equity
Equity Share Capital 1,810.23 - 1,810.23
Other Equity 1,2,4,5,6,7, 76,156.76 20,269.37 96,426.13
10,11,12
Equity attributable to equity holders of 77,966.99 20,269.37 98,236.36
the parent
Non-controlling interests 143.74 - 143.74
Total equity 78,110.73 20,269.37 98,380.10
Borrowings 44,902.44 - 44,902.44
Other financial liabilities 4 16,157.72 (9,860.56) 6,297.16
Provisions 1,370.42 - 1,370.42
62,430.58 (9,860.56) 52,570.02
Current liabilities
Trade payables 13,246.79 - 13,246.79
Other financial liabilities 12,725.75 - 12,725.75
Provisions 7 11,707.53 (8,715.02) 2,992.51
Tax liabilities (net) 374.88 - 374.88
Other liabilities 3,023.01 - 3,023.01
41,077.96 (8,715.02) 32,362.94
Total liabilities 1,03,508.54 (18,575.58) 84,932.96
Total equity and liabilities 1,81,619.27 1,693.79 1,83,313.06

Reconciliation of equity as at 31st March, 2016
(` in Lacs)
Assets
Non-current assets
Property, plant and equipment 27,794.81 - 27,794.81
Capital work in progress 552.18 - 552.18
Goodwill 78,633.19 - 78,633.19
Other Intangible assets 349.74 - 349.74
Intangible asset under development 240.00 - 240.00
Financial assets
Investments 2.59 - 2.59
Loans 1 892.42 (88.24) 804.18
Income tax assets (net) 12,349.99 - 12,349.99
Other assets 1 10,208.14 70.48 10,278.62
1,31,363.43 (17.76) 1,31,345.67
Current assets
Inventories 18,508.15 - 18,508.15
Financial assets
Investments 2 8,344.00 245.15 8,589.15
Loans 1 218.44 (0.86) 217.58
Trade receivables 9,411.03 - 9,411.03
Cash and cash equivalent 2,367.39 - 2,367.39
Other bank balances 3,752.44 - 3,752.44
Other assets 1 2,240.83 5.67 2,246.50
45,361.29 249.96 45,611.25
Total assets 1,76,724.72 232.20 1,76,956.92

Equity
Equity Share Capital 1,811.20 - 1,811.20
Other Equity 1,2,4,5,6,7, 82,802.45 5,534.14 88,336.59
10,11,12
Equity attributable to equity holders of 84,613.65 5,534.14 90,147.79
the parent
Non-controlling interests 3 169.74 (435.61) (265.87)
Total equity 84,783.39 5,098.53 89,881.92
Borrowings 727.44 - 727.44
Other financial liabilities 4 498.50 (498.50) -
Provisions 1,776.65 - 1,776.65
Deferred tax liabilities (net) 5 2,530.38 1,562.50 4,092.88
5,532.97 1,064.00 6,596.97
Current liabilities
Trade payables 6 16,084.08 31.06 16,115.14
Other financial liabilities 4 60,218.74 (3,781.47) 56,437.27
Provisions 7 5,204.05 (2,179.92) 3,024.13
Tax liabilities (net) 534.48 - 534.48
Other liabilities 4,367.01 - 4,367.01
86,408.36 (5,930.33) 80,478.03
Total liabilities 91,941.33 (4,866.33) 87,075.00
Total equity and liabilities 1,76,724.72 232.20 1,76,956.92


Reconciliation of profit and loss for the year ended March 31, 2016
(` in Lacs)
Income
Revenue from operations 8 1,64,608.55 1,342.87 1,65,951.42
Other income 1, 2 1,023.23 (28.87) 994.36
Finance income 436.89 - 436.89
Total Income ( I ) 1,66,068.67 1,314.00 1,67,382.67
Expenses
Cost of raw material and components 49,662.91 - 49,662.91
consumed
Purchase of traded goods 8 30,086.34 3,738.20 33,824.54
(Increase)/ decrease in inventories of
finished goods,
work-in-progress and traded goods" 115.30 - 115.30
Excise duty expense 8 - 6,675.98 6,675.98
Employee benefits expense 9 16,610.21 (134.22) 16,475.99
Employee stock option expenses 10 1,750.26 (122.43) 1,627.83
Depreciation and amortisation expense 3,140.15 - 3,140.15
Finance costs 4,11 603.30 5,580.60 6,183.90
Other expenses 1,6,8 44,373.95 (9,008.49) 35,365.46
Total Expense ( II ) 1,46,342.42 6,729.64 1,53,072.06
Profit before tax ( I-II ) 19,726.25 (5,415.64) 14,310.61

Income tax
Current tax (MAT) 4,304.60 - 4,304.60
Less: MAT credit entitlement (2,850.25) - (2,850.25)
Deferred tax 5 2,476.14 2,998.13 5,474.27
Total Income tax 3,930.49 2,998.13 6,928.62
Profit after tax (A) 15,795.76 (8,413.77) 7,381.99
Other Comprehensive Income
Re-measurement gains/ (losses) on 9 - (134.22) (134.22)
defined benefit plans
Income tax effect 9 - 33.64 33.64
Other Comprehensive Income for the - (100.58) (100.58)
year (Net of Tax) (B)
Total comprehensive income for the 15,795.76 (8,514.35) 7,281.41
year, net of tax attributable to equity
share holders (A+B)
Non controlling interest 3 (0.29) (435.61) (435.90)
Profit after tax 15,796.05 (8,078.74) 7,717.31

(` in Lacs)
Footnotes to the reconciliation of equity as at 1st April 2015 and 31st March 2016 and profit and loss for the year
ended 31st March 2016
1 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 amortised cost at the effective interest rate and the difference
is recognised as deferred lease asset. The carrying amount of the asset increases in each period to reflect
the passage of time which is recognised 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.
2 FVTPL financial assets
Under Indian GAAP, the Group 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.
3 Non controlling interest
Under Indian GAAP, excess of losses applicable to minority over the minority interest in the equity of the
subsidiary are adjusted against majority interest except to the extent that the minority has a binding obligation
to, and is able to, make good the losses. Under Ind AS, total comprehensive income is allocated to the owners
of the parent and the non-controlling interests even though this results in the non-controlling interests
having a deficit balance. Thus, non-controlling interest under Ind AS has been decreased by `435.61 with a
corresponding increase in other equity by `435.61.
4 Zero Coupon Non convertible debentures
The Group had issued zero coupon non-convertible debentures redeemable at premium, which were
outstanding as on April 1, 2015. Under Indian GAAP, the Group 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
amortised cost. The Group has retrospectively applied the effective interest method (EIM) and arrived at
amortised 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 amortised 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, Group has recognised finance cost of `5580.60 in the profit and loss.
5 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 recognised 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.
6 Trade Payables
Under Indian GAAP, lease arrangements for land was not covered within the scope of AS 19 “Leases”. Whereas,
under Ind AS 17 “Leases”, lease arrangement to use land is covered. Under Ind AS 17, lease payment under
operating lease shall b e recognised as an expense on a straight line basis over the lease term. This has resulted
an increase in trade payables as on the date of transition by `31.06 with a corresponding decrease in retained
earnings by `31.06.


(` in Lacs)
Footnotes to the reconciliation of equity as at 1st April 2015 and 31st March 2016 and profit and loss for the year
ended 31st March 2016 (contd.)
7 Proposed dividend
Under Indian GAAP, proposed dividends including dividend distribution tax are recognised as a liability in
the period to which they relate, irrespective of “when they are declared. Under Ind AS, a proposed dividend
is recognised as a liability in the period in which it is declared by the Group (usually” when approved by
shareholders in a general meeting) or paid.
In the case of the Group, the declaration of dividend occurs after period end. Therefore, the liability of `8,715.02
for the year ended on March 31, 2015 recorded for dividend has been derecognised against retained earnings
on April 1, 2015. The proposed dividend for the year ended on March 31, 2016 of `2,179.92 recognised under
Indian GAAP was reduced from other payables with a corresponding impact in the retained earnings.
8 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 of 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 `5,965.53 with a corresponding increase in excise
duty expense.
Further, under Indian GAAP, certain sale promotion expenses amounting was recognised 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 `8,363.97 with corresponding increase in purchase of traded goods
of `3,741.31 and decrease in sale of goods by `4,622.66.
9 Defined benefit obligation
Both under Indian GAAP and Ind AS, the Group recognised 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, remeasurements comprising of actuarial gains and losses on the
net defined benefit liability and the return on plan assets are recognised immediately in the balance sheet
with a corresponding debit or credit to retained earnings through OCI. Thus, the employee benefits expense
is reduced by `134.22 and is recognised in other comprehensive income (net of tax of `33.64) for the year
ended March 31, 2016.
10 Share-based payments
Under Indian GAAP, the Group recognised 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 recognised over the vesting period. Accordingly, an expense of `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.
11 Borrowings
Under Indian GAAP, transaction costs incurred in connection with borrowings are amortised 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.
12 Investment subsidy
The Group 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.
13 Other comprehensive income
Under Indian GAAP, the Group 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.
14 Consolidated Statement of cash flows
The transition from Indian GAAP to Ind AS has not had a material impact on the Consolidated statement of
cash flows.
15 Previous GAAP figures have been reclassified / regrouped where ever necessary to confirm with Consolidated
financial statements prepared under IND AS.

NOTE 55. 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’.
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 iabilities 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 Group
is evaluating the requirements of the amendment and the effect on the financial statements is being evaluated.
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
Group does not have any cash settled award as at March 31, 2017.
Signatures to Notes 1 to 55
Company Secretary
Date: May 18, 2017 Date: May 18, 2017

Notes

Notes

Caution regarding forward-looking statements
This document contains statements about expected future events, and financial and operating results of Jyothy Laboratories
Limited. By nature, these forward-looking statements require the Company to make assumptions and are subject to inherent
risks and uncertainties. There are significant risks that the assumptions, predictions and other forward-looking statements
will not prove to be accurate. Readers are cautioned not to place undue reliance on these statements as a number of
factors could lead to assumptions, and actual future results and events could differ materially from those expressed in
these statements. Accordingly, this document is subject to the disclaimer and qualified in its entirety by the assumptions,
qualifications and risk factors referred to in the management’s discussion and analysis of the Jyothy Laboratories Limited
annual report FY2016-17.
A PRODUCT | [email protected]
Corporate & Registered Office:
Ujala House, Ramakrishna Mandir Road
Kondivita, Andheri East, Mumbai - 400059
Phone: +91-22-66892800 | Fax: +91-22-66892805
E-Mail: [email protected]
CIN: L24240MH1992PLC128651

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Value for

37 | CSR activities 38 | Employee engagement 39 | Corporate information 40 | Directors’ report 42 |

Consolidated ﬁnancial statements 169

Anchor Vision Mission

2 | Jyothy Laboratories Limited

History Key product Key ﬁnancial highlights,

Category contribution FY2016-17 FY2015-16

42.2 15.1 9.1 29.1 2.1 2.5

Household Personal Dish Laundry

41.3 16.8 8.9 28.8 1.7 2.6

Annual Report 2016-17 | 3

Value for Many!

Jyothy in the heart of India

Annual Report 2016-17 | 5

It gives me pleasure to highlight that inspite of

FMCG: The backbone of India’s

6 | Jyothy Laboratories Limited

At the heart of Jyothy Projecting the future

Annual Report 2016-17 | 7

Net revenues Gross margins (%) Net proﬁt

Analysis: Consistent Analysis: Our aggressive Analysis: Our net proﬁt

8 | Jyothy Laboratories Limited

Average debt cost Operating costs Working capital Return on capital

Annual Report 2016-17 | 9

consumption on the one hand and deeper category

10 | Jyothy Laboratories Limited

Please comment on the EBITDA

Q margin which the Company

Q How was the Company able to

Is the Company speciﬁcally

Q targeting the bottom-of-the-

Annual Report 2016-17 | 11

12 | Jyothy Laboratories Limited

Annual Report 2016-17 | 13

Jyothy Laboratories is synonymous with innovation.

Product innovation higher liquid consumption (with the

14 | Jyothy Laboratories Limited

household budget and control ingredient-based personal care

Annual Report 2016-17 | 15

16 | Jyothy Laboratories Limited

Bhaiyya, ek Exo bar dena.

Annual Report 2016-17 | 17

18 | Jyothy Laboratories Limited

Arrey Pinky, pataa hai kal raat ghar

Aag lagte-lagte bach gayi.

Mosquito card jal rahaa tha aur

Arrey, yeh toh dangerous kissa tha.

Maxo Magic Genius Card mein kya

Genius card hai. Yeh card stand ke

Annual Report 2016-17 | 19

Entrepreneurial Widespread Mass-premium

Responsible Technology-driven Hands-on

20 | Jyothy Laboratories Limited

Well-known Innovative Focused

Annual Report 2016-17 | 21

22 | Jyothy Laboratories Limited

India’s FMCG sector is the fourth-largest in India

and exchange initiative. Subsequently, increasing digitisation, rampant

Annual Report 2016-17 | 23

24 | Jyothy Laboratories Limited