1. Additional Notes to the Financial Statements
(i) The revised Schedule VI has become effective from 1st April, 2011
for the preparation of financial statements. This has significantly
impacted the disclosure and presentation made in the financial
statements. Previous year''s figures have been regrouped / reclassified
wherever necessary to correspond with the current year''s classification
(ii) Exchange difference in respect of forward exchange contracts to be
recognised in the Statement of Profit and Loss in the subsequent
accounting period amounts to Rs 0.78 Crore (2011 - Rs 0.26 Crore).
(iii) Contingent liabilities and commitments:
(a) Contingent liabilities
Claims against the Company not acknowledged as debts Rs 287.08 Crores
(2011 - Rs 255.17 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 199.23 Crores (2011 - Rs 182.87 Crores).
- Local Authority taxes/cess/royalty on property, utilities etc.
claims disputed by the Company relating to issues of applicability and
determination aggregating Rs 47.35 Crores (2011 - Rs 33.83 Crores).
- Third party claims arising from disputes relating to contracts
aggregating Rs 37.26 Crores (2011 - Rs 35.08 Crores).
- Other matters Rs 3.24 Crores (2011 - Rs 3.39 Crores).
- Estimated amount of contracts remaining to be executed on capital
accounts and not provided for Rs 2246.53 Crores (2011 - Rs 1976.62
- Uncalled liability on shares partly paid Rs 26.40 Crores (2011 - Rs
(iv) The status on excise matters which is treated as an annexure to
these accounts are as outlined in this year''s 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
(v) Research and Development expenses for the year amount to Rs 87.84
Crores (2011 - Rs 90.24 Crores).
(vi) Micro, Small and Medium scale business entities: A sum of Rs
12.42 Crores is payable to Micro and Small Enterprises as at 31st
March, 2012 (2011 - Rs 4.60 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, 2012. 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.
(vii) 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 25.
(viii) 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.
(ix) Gross Revenue from sale of products and services comprise*
NOTES : (1) The Company''s 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 and Packaging and Agri Business. The Company''s
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, Pasta & 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 soya, spices, coffee and
(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 Company''s 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.
2. Related Party Disclosures
1. ENTERPRISES WHERE CONTROL EXISTS:
a) Srinivasa Resorts Limited
b) Fortune Park Hotels Limited
c) Bay Islands Hotels Limited
d) Russell Credit Limited and its subsidiary Greenacre Holdings Limited
e) 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
f) Wimco Limited and its subsidiaries
Pavan Poplar Limited
Prag Agro Farm Limited
g) ITC Infotech India Limited and its subsidiaries
ITC Infotech Limited, UK
ITC Infotech (USA), Inc. and its subsidiary
Pyxis Solutions, LLC
h) Wills Corporation Limited
i) Gold Flake Corporation Limited
j) Landbase India Limited
k) BFIL Finance Limited and its subsidiary
MRR Trading & Investment Company Limited
l) Surya Nepal Private Limited
m) King Maker Marketing, Inc., USA
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
2. OTHER RELATED PARTIES WITH WHOM THE COMPANY HAD TRANSACTIONS
i) 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
a) Maharaja Heritage Resorts Limited
b) Espirit Hotels Private Limited
c) Logix Developers Private Limited (w.e.f. 27.09.2011)