SENSEX NIFTY India | Notes to Account > Cigarettes > Notes to Account from ITC - BSE: 500875, NSE: ITC
BSE: 500875|NSE: ITC|ISIN: INE154A01025|SECTOR: Cigarettes
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VOLUME 172,867
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VOLUME 4,212,550
« Mar 13
Notes to Accounts Year End : Mar '14
(i) Contingent liabilities and commitments:
 (a)Contingent liabilities
 Claims against the Company not acknowledged as debts Rs. 361.50 Crores
 (2013 - Rs. 466.54 Crores). These comprise:
 - Excise duty, sales taxes and other indirect taxes claims disputed by
 the Company relating to issues of applicability and classification
 aggregating Rs. 254.99 Crores (2013 - Rs. 377.74 Crores).
 - Local Authority taxes/cess/royalty on property, utilities etc. claims
 disputed by the Company relating to issues of applicability and
 determination aggregating Rs. 63.62 Crores (2013 - Rs. 45.16 Crores).
 - Third party claims arising from disputes relating to contracts
 aggregating Rs. 37.36 Crores (2013 - Rs. 39.07 Crores).
 - Other matters Rs. 5.53 Crores (2013 - Rs. 4.57 Crores).
 It is not practicable for the Company to estimate the closure of these
 issues and the consequential timings of cash flows, if any, in respect
 of the above.
 - Estimated amount of contracts remaining to be executed on capital
 accounts and not provided for Rs. 1528.10 Crores (2013 - Rs. 1656.29
 - Uncalled liability on shares partly paid Rs. 26.40 Crores (2013 - Rs.
 26.40 Crores).
 (iii) Research and Development expenses for the year amount to Rs. 117.18
 Crores (2013 - Rs. 109.22 Crores).
 (v) Micro, Small and Medium scale business entities:
 A sum of Rs. 23.25 Crores is payable to Micro and Small Enterprises as at
 31st March, 2014 (2013 - Rs. 15.12 Crores). There are no Micro, Small and
 Medium Enterprises, to whom the Company owes dues, which are
 outstanding for more than 45 days during the year and also as at 31st
 March, 2014. This information as required to be disclosed under the
 Micro, Small and Medium Enterprises Development Act, 2006 has been
 determined to the extent such parties have been identified on the basis
 of information available with the Company.
 (vi) The Company''s significant leasing arrangements are in respect of
 operating leases for premises (residential, office, stores, godowns
 etc.). These leasing arrangements which are not non-cancellable range
 between 11 months and 9 years generally, or longer, and are usually
 renewable by mutual consent on mutually agreeable terms. The aggregate
 lease rentals payable are charged as Rent under Note 28.
 (ix) The Employee Stock Option Scheme section in the Report on
 Corporate Governance and the disclosure in respect of Employees Stock
 Options which are outlined in this year''s Annexure to the Report of the
 Directors are treated as an annexure to these accounts.
 (x) The Board of Directors of the Company, at its meeting held on 28th
 August, 2013, proposed a Scheme of Arrangement under Sections 391 and
 394 read with Sections 78, 80, 100 and other applicable provisions of
 the Companies Act, 1956, between its subsidiary, Wimco Limited
 (''Wimco'') and the Company and their respective shareholders (''the
 Scheme'') for demerger of the Non-Engineering business of Wimco to the
 Company on a going concern basis with effect from 1st April, 2013. The
 Members of the Company approved the Scheme on 24th March, 2014. The
 Hon''ble High Courts at Bombay and Calcutta have also sanctioned the
 Scheme on 10th April, 2014 and 14th May, 2014, respectively. Certified
 copies of the Orders from the Courts are awaited. The Scheme would
 become effective upon filing of such certified copies of the Orders
 with the respective Registrar of Companies. Pending this, the Scheme
 has not been given effect to in these financial statements.
 (xiv) Value of Raw materials, Spare parts and Components consumed
 during the year
 (xvii) Liability for earlier years towards Rates and Taxes and Interest
 thereon of Rs. 157.91 Crores and Rs. 34.77 Crores respectively have been
 written back as no longer required, based on a favourable High Court
 Order (Refer Notes 27 and 28). Segment Results of FMCG-Cigarettes and
 Finance Costs include the effects of such write back (Refer Note 32).
 (xviii) Previous year''s figures have been regrouped / reclassified
 wherever necessary to correspond with the current year''s
 classification/ disclosure.
 33. Related Party Disclosures
 i) Subsidiaries:
 a) Srinivasa Resorts Limited
 b) Fortune Park Hotels Limited
 c) Bay Islands Hotels Limited
 d) WelcomHotels Lanka (Private) Limited, Sri Lanka
 e) Landbase India Limited
 f) Russell Credit Limited and its subsidiary
 Greenacre Holdings Limited
 g) Technico Pty Limited, Australia and its subsidiaries
 Technico Agri Sciences Limited
 Technico Technologies Inc., Canada
 Technico Asia Holdings Pty Limited, Australia and its subsidiary
 Technico Horticultural (Kunming) Co. Limited, China h) Wimco Limited
 and its subsidiaries Pavan Poplar Limited Prag Agro Farm Limited i) ITC
 Infotech India Limited and its subsidiaries
 ITC Infotech Limited, UK
 ITC Infotech (USA), Inc. and its subsidiary Pyxis Solutions, LLC, USA
 j) Wills Corporation Limited k) Gold Flake Corporation Limited l) ITC
 Investments & Holdings Limited m) Surya Nepal Private Limited n) King
 Maker Marketing, Inc., USA o) BFIL Finance Limited and its subsidiary
 MRR Trading & Investment Company Limited p) North East Nutrients
 Private Limited (w.e.f. 06.02.2014) The above list does not include ITC
 Global Holdings Pte. Limited, Singapore (in liquidation)
 ii) Other entities under control of the Company:
 a) ITC Sangeet Research Academy
 b) ITC Education Trust
 c) ITC Rural Development Trust
 Associates & Joint Ventures:
 a) Gujarat Hotels Limited
 b) International Travel House Limited
 - being associates of the Company, and
 c) Tobacco Manufacturers (India) Limited, UK
 - of which the Company is an associate.
 Associates of the Company''s subsidiaries
 a) Russell Investments Limited
 b) Classic Infrastructure & Development Limited
 c) Divya Management Limited
 d) Antrang Finance Limited
 - being associates of Russell Credit Limited, and
 e) ATC Limited
 - being associate of Gold Flake Corporation Limited
 Joint Ventures
 a) Maharaja Heritage Resorts Limited
 b) Espirit Hotels Private Limited
 c) Logix Developers Private Limited
 Joint Venture of the Company''s subsidiary
 a) ITC Essentra Limited (formerly known as ITC Filtrona Limited) -
 being joint venture of Gold Flake Corporation Limited
 ii) a) Key Management Personnel:
 Y. C. Deveshwar                Executive Chairman
 N. Anand                       Executive Director
 P. V. Dhobale                  Executive Director
 K. N. Grant                    Executive Director
 A. Baijal                      Non-Executive Director
 S. Banerjee                    Non-Executive Director (upto 26.03.2014)
 S. H. Khan                     Non-Executive Director
 A. V. Girija Kumar             Non-Executive Director
 R. Lerwill                     Non-Executive Director 
                                (w.e.f. 18.11.2013)
 S. B. Mathur                   Non-Executive Director
 D. K. Mehrotra                 Non-Executive Director
                                (upto 27.10.2013)
 H. G. Powell                   Non-Executive Director (upto 30.07.2013)
 P. B. Ramanujam                Non-Executive Director
 S. S. H. Rehman                Non-Executive Director
 A. Ruys                        Non-Executive Director
 B. Sen                         Non-Executive Director (upto 27.08.2013)
 M. Shankar                     Non-Executive Director
 K. Vaidyanath                  Non-Executive Director
 B. Vijayaraghavan              Non-Executive Director (upto 27.08.2013)
 Members - Corporate Management Committee
 B. B. Chatterjee
 A. Nayak
 T. V. Ramaswamy
 S. Sivakumar
 K. S. Suresh
 R. Tandon
 b)   Relatives of Key Management Personnel:
 Mrs. B. Deveshwar (wife of Mr. Y. C. Deveshwar)
 Mrs. S. Chatterjee (wife of Mr. B. B. Chatterjee)
 iii) Employee Trusts where there is significant influence:
 a) IATC Provident Fund
 b) IATC Staff X Provident Fund
 c) ITC Defined Contribution Pension Fund
 d) ITC Management Staff Gratuity Fund
 e) ITC Employees Gratuity Fund
 f) ITC Gratuity Fund ''C''
 g) ITC Pension Fund
 h) ILTD Seasonal Employees Pension Fund
 i) ITC Platinum Jubilee Pension Fund
 j) Tribeni Tissues Limited Gratuity Fund
 k) ITC Bhadrachalam Paperboards Limited Management Staff Pension Fund
 l) ITC Bhadrachalam Paperboards Limited Gratuity Fund ''A''
 m) ITC Bhadrachalam Paperboards Limited Gratuity Fund ''C''
 n) ITC Hotels Limited Employees Superannuation Scheme
Source : Dion Global Solutions Limited
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