(i) Exchange difference in respect of forward exchange contracts to be
 recognised in the Profit and Loss Account in the subsequent accounting
 period amounts to Rs. 0.26 Crore (2010 - Rs. 0.54 Crore).
 
 (ii) (a) Claims against the Company not acknowledged as debts Rs.
 255.17 Crores (2010 - Rs. 258.73 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. 182.87 Crores (2010 - Rs. 193.74 Crores).
 
 - Local Authority Taxes/Cess/Royalty on property, utilities etc. claims
 disputed by the Company relating to issues of applicability and
 determination aggregating Rs. 33.83 Crores (2010 - Rs. 33.49 Crores).
 
 - Third party claims arising from disputes relating to contracts
 aggregating Rs. 35.08 Crores (2010 -Rs. 29.22 Crores).
 
 - Other matters Rs. 3.39 Crores (2010 - Rs. 2.28 Crores).
 
 * After considering Bonus issue.
 
 During the year Bonus Shares in the ratio of 1:1 were allotted on 6th
 August, 2010. Previous year figures have been restated
 
 for the purpose of computation of Earnings per share.
 
 (iv) The status on excise matters which is treated as an annexure to
 these accounts are as outlined in this years Report of the Directors &
 Management Discussion and Analysis under the Excise section. In the
 opinion of the Directors, the Company does not accept any further
 liability.
 
 (v) Research and Development expenses for the year amount to Rs. 90.24
 Crores (2010 - Rs. 77.08 Crores).
 
 (vii) Micro and Medium scale business entities :
 
 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, 2011. 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.
 
 (viii) The Companys 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 Schedule 17.
 
 (ix) The following donations were made to political parties during the
 year : Indian National Congress – Rs. 0.50 Crore (2010 – Rs. 2.50
 Crores), Bharatiya Janata Party – Rs. Nil (2010 – Rs. 2.50 Crores),
 Samajwadi Party – Rs. Nil (2010 – Rs. 0.42 Crore), Rashtriya Janata Dal
 – Rs. Nil (2010 – Rs. 0.33 Crore), Dravida Munnetra Kazhagam – Rs. Nil
 (2010 – Rs. 0.22 Crore), Shiv Sena Rs. Nil (2010 – Rs. 0.17 Crore) and
 Nationalist Congress Party – Rs. Nil (2010 – Rs. 0.14 Crore).
 
 (xi) DIRECTORS REMUNERATION
 
 The above (a) excludes contribution to the approved group pension and
 gratuity funds and provisions for leave encashment, which are
 actuarially determined on an overall Company basis and (b) includes Rs.
 0.89 Crore, in respect of two Executive Directors, Mr. P. V. Dhobale
 and Mr. N. Anand, whose appointment by the Board of Directors for
 tenures commencing from 3rd January, 2011 are subject to approval of
 the Members at the forthcoming Annual General Meeting.
 
 (xii) Derivative Instruments :
 
 The Company uses Forward Exchange Contracts and Currency Options to
 hedge its exposures in foreign currency related to firm commitments and
 highly probable forecasted transactions. The information on Derivative
 Instruments is as follows :
 
 * Figures in brackets indicate Open Exports. Figures without brackets
 indicate Open Imports.
 
 (xiii) 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 years Annexure to the Report of the
 Directors are treated as an annexure to these accounts.
 
 (xv) ADDITIONAL INFORMATION PURSUANT TO THE PROVISIONS OF PARAGRAPHS 3,
 4C AND 4D OF PART II OF SCHEDULE VI OF THE COMPANIES ACT, 1956.
 
 a) The Registered/Licensed Capacity (including as approved by
 Letters of Intent) is exclusive of additional capacities permissible
 under the policy of the Government of India.
 
 b) Includes production meant for internal consumption.
 
 c) Based on Capacity rated by equipment manufacturers/project
 consultants at the time of installation.  N.A. - Not Applicable
 
 * Relates to the Companys main products and the principal raw
 materials.
 
 # Others primarily include Hotel Consumables, Spices, Skimmed Milk
 Powder, Fabrics, Agri Inputs etc.
 
 Note : The Board of Directors of the Company have specifically
 consented to the continued disclosure of certain items individually
 constituting less than 10% of the total value of turnover, purchases,
 opening and closing stocks, and raw materials consumed, covered in (B),
 (C) and (D), as appropriate, in the Additional Information provided
 above.
 
 NOTES :
 
 (1) The Companys corporate strategy aims at creating multiple drivers
 of growth anchored on its core competencies. The Company is currently
 focused on four business groups : FMCG, Hotels, Paperboards, Paper &
 Packaging and Agri Business. The Companys organisational structure and
 governance processes are designed to support effective management of
 multiple businesses while retaining focus on each one of them.
 
 (2) The business groups comprise the following :
 
 FMCG : Cigarettes    - Cigarettes, Cigars and Smoking Mixtures.
 
      : Others        - Branded Packaged Foods (Staples, Biscuits, 
                        Confectionery, Snack Foods, Noodles,
                        Ready to Eat Foods), Garments, Educational 
                        and other Stationery products, Matches, 
                        Agarbattis and Personal Care products.
 
 Hotels               - Hoteliering.
 
 Paperboards, Paper 
 and Packaging        - Paperboards, Paper including Specialty Paper 
                        and Packaging including Flexibles.
 
 Agri Business        - Agri commodities such as rice, soya, coffee 
                        and leaf tobacco.
 
 (3) The geographical segments considered for disclosure are :
 
                      - Sales within India.
 
                      - Sales outside India.
 
 (4) Segment results of ‘FMCG : Others are after considering
 significant business development, brand building and gestation costs of
 Branded Packaged Foods and Personal Care Products businesses.
 
 (5) The Companys Agri Business markets agri commodities in the export
 and domestic markets; supplies agri raw materials to the Branded
 Packaged Foods Business and sources leaf tobacco for the Cigarettes
 Business. The segment results for the year are after absorbing costs
 relating to the strategic e-Choupal initiative.
 
 21. Related Party Disclosures
 
 1.  ENTERPRISES WHERE CONTROL EXISTS:
 
 i) Subsidiaries :
 
 a) Srinivasa Resorts Limited
 
 b) Fortune Park Hotels Limited
 
 c) Bay Islands Hotels Limited
 
 d) Russell Credit Limited and its subsidiaries
 
 Greenacre Holdings Limited 
 
 Wimco Limited and its subsidiaries
 
 Pavan Poplar Limited
 
 Prag Agro Farm Limited 
 
 Technico Pty Limited, Australia and its subsidiaries
 
 Technico ISC Pty Limited, Australia (deregistered on 03.11.2010)
 
 Technico Agri Sciences Limited
 
 Technico Technologies Inc., Canada
 
 Technico Asia Holdings Pty Limited, Australia and its subsidiary
 
 Technico Horticultural (Kunming) Co. Limited, China
 
 e) ITC Infotech India Limited and its subsidiaries
 
 ITC Infotech Limited, UK 
 
 ITC Infotech (USA), Inc. and its subsidiary
 
 Pyxis Solutions, LLC
 
 f) Wills Corporation Limited
 
 g) Gold Flake Corporation Limited h) Landbase India Limited
 
 i) BFIL Finance Limited and its subsidiary
 
 MRR Trading & Investment Company Limited 
 
 j) Surya Nepal Private Limited
 
 k) King Maker Marketing, Inc.  
 
 The above list does not include :
 
 a) ITC Global Holdings Pte. Limited, Singapore (in liquidation) and its
 subsidiaries
 
 Hup Hoon Traders Pte. Limited, Singapore (struck off w.e.f. 31.03.2011
 by the Registrar of Companies,
 Singapore)
 
 AOZT Hup Hoon, Moscow
 
 Hup Hoon Impex SRL, Romania, and
 
 b) BFIL Securities Limited (a subsidiary of BFIL Finance Limited) which
 is under voluntary winding up proceedings.
 
 ii) Other entities under control of the Company :
 
 a) ITC Sangeet Research Academy
 
 b) ITC Education Trust
 
 c) ITC Rural Development Trust
 
 2.  OTHER RELATED PARTIES WITH WHOM THE COMPANY HAD TRANSACTIONS
 
 i) Associates & Joint Ventures : Associates
 
 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 Companys 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 (w.e.f. 24.09.2010)
 
    - being joint ventures of the Company
 
 Joint Venture of the Companys subsidiary
 
 a) ITC Filtrona Limited
 
    - being joint venture of Gold Flake Corporation Limited
 
 ii) a) Key Management Personnel (KMP) :
 
 Y. C. Deveshwar          Executive Chairman
 
 N. Anand                 Executive Director
 
 P. V. Dhobale            Executive Director (KMP w.e.f. 26.07.2010)
 
 K. N. Grant              Executive Director
 
 A. Singh                 Executive Director (upto 23.07.2010)
 
 A. Baijal                Non-Executive Director
 
 S. Banerjee              Non-Executive Director
 
 S. H. Khan               Non-Executive Director
 
 A. V. Girija Kumar       Non-Executive Director
 
 S. B. Mathur             Non-Executive Director
 
 D. K. Mehrotra           Non-Executive Director
 
 H. G. Powell             Non-Executive Director
 
 P. B. Ramanujam          Non-Executive Director
 
 A. Ruys                  Non-Executive Director
 
 B. Sen                   Non-Executive Director 
 
 K. Vaidyanath            Non-Executive Director 
 
 B. Vijayaraghavan         Non-Executive Director 
 
 Members - Corporate Management Committee
 
 A. Nayak
 
 S. Sivakumar
 
 T. V. Ramaswamy
 
 R. Tandon
 
 B. B. Chatterjee 
 
 K. S. Suresh
 
 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 Provident Fund
 
 k) Tribeni Tissues Limited Gratuity Fund
 
 l) ITC Bhadrachalam Paperboards Limited Management Staff Pension Fund
 
 m) ITC Bhadrachalam Paperboards Limited Gratuity Fund ‘A
 
 n) ITC Bhadrachalam Paperboards Limited Gratuity Fund ‘B
 
 o) ITC Bhadrachalam Paperboards Limited Gratuity Fund ‘C
 
 p) ITC Bhadrachalam Paperboards Limited Staff Provident Fund
 
 q) ITC Hotels Limited Employees Superannuation Scheme
 
 r) ITC Hotels Limited Employees Gratuity Fund