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ITC
BSE: 500875|NSE: ITC|ISIN: INE154A01025|SECTOR: Cigarettes
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« Mar 11
Notes to Accounts Year End : Mar '12
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
 / disclosure.
 
 (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).
 
 (b)Commitments
 
 - Estimated amount of contracts remaining to be executed on capital
 accounts and not provided for Rs 2246.53 Crores (2011 - Rs 1976.62
 Crores).
 
 - Uncalled liability on shares partly paid Rs 26.40 Crores (2011 - Rs
 26.40 Crores).
 
 (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
 liability.
 
 (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
 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 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:
 
 i) Subsidiaries:
 
 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:
 
 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 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 (w.e.f. 27.09.2011)
Source : Dion Global Solutions Limited
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