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tripti27
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unsupervised_finetuning

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(Agriculture) \| 32 \| 26.02.1992 \| Nil \| \| Ray Chaudhuri B \| 44 \| V.P. - Corporate Planning \| 77,76,896 \| 1,28,52,506 \| B.Com. (Hons.), A.C.A. \| 23 \| 01.03.2002 \| ABB Ltd., Asst. Financial Controller \| \| Ray M \| 45 \| V.P. - Sales & Category Development - Personal Care, Matches & Agarbatti (TM & D) \| 13,69,059 \| 1,25,44,600 \| B.Tech. \| 23 \| 01.06.2001 \| Nil \| \| Ray P \| 49 \| General Manager - Supply Chain Foods (TM & D) \| 73,01,506 \| 94,04,740 \| B.Com., M.Com., P.G.D.M. \| 24 \| 16.02.2001 \| Hindustan Unilever Ltd., T.S.I. \| \| Reddy K V \| 58 \| Executive V.P. - Product Development - Staples, Spices, Noodles & Pasta (FBD) \| 2,22,753 \| 1,64,32,756 \| B.Tech. \| 35 \| 01.08.2001 \| Cargill India Pvt. Ltd., Production Manager \| \| Reddy M S \| 58 \| General Manager - Mysore Leaf Operations, Tobacco SBU (ABD) \| 9,47,375 \| 63,13,054 \| B.Sc., M.Sc. \| 32 \| 16.12.1991 \| Nil \| \| Reddy V K \| 49 \| General Manager - Projects, Maintenance & Engineering, Chocolates, Coffee & Confectionery (FBD) \| 8,77,343 \| 68,26,449 \| B.Sc. \| 27 \| 17.01.2005 \| Perfetti Van Melle India, Senior Executive \| \| Roria S S \| 55 \| General Manager & Complex Head (FBD) \| 7,26,034 \| 58,80,089 \| B.Tech., M.Tech. \| 29 \| 04.03.2002 \| Britannia Industries Ltd., Production Officer \| \| Roy Abhijit \| 58 \| Executive V.P. - Internal Audit \| 66,83,352 \| 1,65,67,294 \| B.Com. (Hons.), A.C.A. \| 35 \| 04.06.1990 \| E.L.M. (I) Ltd., Accounts Officer \| \| Roy Agnidev \| 37 \| General Manager - Brands (ITD) \| 51,44,972 \| 73,39,135 \| B.Sc. (Hons.), M.B.A. \| 14 \| 11.06.2012 \| Bates 141, Brand Manager - Strategic Planning \| \| Rungta A \| 41 \| General Manager - Corporate Audit \| 11,45,251 \| 68,78,705 \| B.Com. (Hons.), A.C.A. \| 18 \| 01.12.2005 \| Nil \| \| Rustagi A K \| 49 \| Chief Operating Officer - Staples & Adjacencies (FBD) \| 30,69,768 \| 2,01,22,483 \| B.Tech., P.G.P.M. \| 27 \| 01.10.2017 \| Unilever Inc. (London), Global Brand Director \| \| Sahay S \| 53 \| Executive V.P. - Sales Operations & Development (TM & D) \| 74,81,713 \| 1,79,32,442 \| B.A., P.G.D.B.A. \| 29 \| 05.09.2002 \| Luxor Writing Instruments Ltd., Brand Manager \| \| Saiprasad G V S (Dr.) \| 51 \| Senior Principal Scientist - Crop Sciences (LSTC) \| 66,75,834 \| 97,41,274 \| B.Sc. (Agri), M.Sc. (Agri), Ph.D. - Plant Physiology \| 26 \| 03.12.2007 \| Indian Institute of Horticultural Research - Scientist \| \| Sandeep C \| 53 \| Executive V.P. & Head - Central Projects Organisation \| 91,57,250 \| 1,71,05,174 \| B.E. \| 32 \| 24.05.1999 \| Kar Mobiles Ltd., Production Engineer \| \| Sanganeria G \| 47 \| V.P. - Corporate Accounts \| 49,33,237 \| 1,40,06,302 \| B.Com. (Hons.), A.C.S., A.C.A. \| 23 \| 11.12.2000 \| Nil \| \| Sangli D K A \| 49 \| Senior Principal Technologist - Tobacco Flavours (ITD) \| 85,62,573 \| 1,08,73,857 \| B.Sc., M.Sc. \| 28 \| 06.08.1996 \| Nil \| \| Saravanan N \| 51 \| General Manager - Operations (FBD) \| 22,35,884 \| 71,79,675 \| B.E. \| 30 \| 11.02.2015 \| Asian Paints Ltd., Senior Manager - Production \| \| Sarda S \| 50 \| General Manager - Finance & Planning (ITD) \| 71,08,279 \| 91,37,481 \| B.Com., A.C.A. \| 24 \| 01.03.2007 \| Videocon Industries Ltd., Manager \| \| Sawant S J \| 52 \| General Manager - Business Development - Frozen Snacks (FBD) \| 52,10,996 \| 90,75,349 \| B.Com., P.G.D.M. \| 24 \| 01.10.2018 \| OSI Vista Foods Ltd., Director Commercial \| \| Sehgal K \| 39 \| General Manager - Sales & Category Development - Cigarettes (TM & D) \| 15,81,967 \| 59,86,149 \| B.Sc., M.B.A. \| 15 \| 14.06.2010 \| GroupM Mindshare Interaction, Consultant \| \| Seksaria S \| 51 \| Group Manager - Taxation \| 79,46,440 \| 1,05,03,379 \| Dip. In Business Finance, A.C.S., C.W.A., A.C.A. \| 26 \| 01.09.1998 \| CESC Ltd., Mgmt. Trainee \| \| Sen P \| 53 \| General Manager - Design & Quality Assurance - Central Projects Organisation \| 27,25,888 \| 64,65,884 \| B.E., M.C.E. \| 28 \| 01.12.2010 \| Elbit India Healthcare Pvt. Ltd., Chief Engineering Officer \| \| Sengupta A \| 52 \| General Manager - Brands (ITD) \| 34,48,006 \| 81,23,006 \| B.E., P.G.D.M.
\| 27 \| 19.12.2011 \| AC Nielsen Org. Marg Pvt. Ltd., Director - CR \| \| Sengupta S \| 59 \| General Manager - Finance - Central Projects Organisation \| 25,65,238 \| 64,37,404 \| B.Com., M.Com. \| 35 \| 01.08.1989 \| Nil \| \| Senthil Kumaran S J \| 49 \| General Manager - Finance - Biscuits and Cakes (FBD) \| 97,09,366 \| 93,98,313 \| B.Com. (Hons.), C.W.A., A.C.A. \| 25 \| 09.07.1999 \| L.M.W. Ltd., Audit Officer \| \| Sequeira S \| 50 \| V.P. - Finance and IT (PCPBD) \| 36,66,931 \| 1,12,97,645 \| B.Com. (Hons.), A.C.A., C.W.A. \| 26 \| 01.09.1998 \| Berger Paints, Asst. Manager \| \| Sethi N \| 40 \| General Manager - Brands (ITD) \| 36,77,073 \| 79,34,465 \| B.Tech., M.B.A. \| 16 \| 14.06.2010 \| Defence Research Dev. Org., Scientist \| \| Shah M B \| 57 \| General Manager - Coffee & Processed Fruits - Agri SBU (ABD) \| 5,39,064 \| 58,30,845 \| B.Sc. (Agriculture) \| 35 \| 01.03.1990 \| NCAER, Field Supervisor \| \| Shankar K \| 43 \| V.P. - Brands (ITD) \| 77,42,152 \| 1,05,13,465 \| B.Tech., P.G.D.M. \| 19 \| 25.09.2018 \| Godfrey Philips India Ltd., Group Brand Manager \| \| Sharma Aneesh \| 38 \| Senior Assistant General Counsel \| 4,79,479 \| 55,80,300 \| B.A., LL.B. \| 14 \| 14.06.2010 \| Nil \| \| Sharma Ashwin \| 43 \| General Manager - Strategic Planning \| 15,76,661 \| 67,36,976 \| B.Com. (Hons.), A.C.A. \| 20 \| 01.12.2005 \| PriceWaterhouse Coopers, ABAS Senior - Audit \| \| Sharma Benita \| 59 \| V.P. - New Revenue Streams (HD) \| 66,63,904 \| 77,71,519 \| B.A. (Economics) \| 35 \| 01.12.1988 \| @ \| \| Sharma Bhavna \| 41 \| Head of Nutrition Science (FBD) \| 13,75,432 \| 72,91,095 \| B.Sc., M.Sc., Ph.D. \| 18 \| 01.04.2019 \| GlaxoSmithKline Consumer Healthcare Ltd., Senior Scientist Innovation \| \| Sharma M \| 54 \| Chief Sustainability Officer \| 64,36,770 \| 88,62,311 \| B.Sc., Executive Diploma in Gen. Mgmt. \| 31 \| 01.12.2021 \| Tata Steel Ltd., Chief - Corporate Sustainability \| \| Sharma Richa \| 52 \| Head - PR & Corporate Communication (HD) \| 6,28,171 \| 58,10,997 \| M.A. Mass Communication, Bachelor of Journalism, PG Diploma in Advertising & PR \| 33 \| 16.09.2003 \| @ \| \| Sharma Sachin \| 46 \| V.P. - Channel & Dairy, Agri SBU (ABD) \| 2,40,111 \| 1,06,15,329 \| M.Sc., P.G. Prog. in Agr. Business Mgmt. \| 21 \| 09.06.2003 \| Nil \| \| Sharma Sandeep \| 52 \| General Manager (ITD) \| 16,65,357 \| 63,64,010 \| B.E. \| 28 \| 04.06.2012 \| GSK Ltd., Manager - Process Engineering \| \| Shenoy T S M \| 56 \| Executive V.P. & Head - Corporate Accounts \| 57,30,506 \| 1,69,67,146 \| B.Com. (Hons.), A.C.A. \| 36 \| 03.08.1992 \| A.F. Ferguson & Co., Mgmt. Consultant \| \| Shere A H \| 47 \| Chief Operating Officer - Biscuits & Cakes (FBD) \| 58,60,927 \| 2,06,04,814 \| B.A., M.B.A. \| 26 \| 21.08.2019 \| Britannia Industries Ltd., Director Marketing \| \| Shukla A \| 44 \| General Manager - Market Research (ITD) \| 21,17,135 \| 71,82,757 \| B.Com., M.B.A. \| 19 \| 07.09.2018 \| Procter & Gamble, Sr. Manager \| \| Shukla M \| 52 \| General Manager (ITD) \| 59,58,959 \| 76,43,957 \| B.Tech. \| 32 \| 01.08.2000 \| Pepsico Holdings Ltd., Shift Engineer \| \| Sidhartha M \| 57 \| Divisional Head (PSPD) \| 5,76,031 \| 52,66,402 \| B.Sc. (Hons.), University Diploma (Pulp & Paper Tech.) \| 34 \| 05.10.1989 \| Star Paper Mills, Shift In-charge \| \| Singal S \| 53 \| Chief Operating Officer - Dairy & Beverages (FBD) \| 63,44,523 \| 1,71,45,803 \| B.Sc., P.G.D.M. \| 29 \| 01.07.2016 \| Dabur India Ltd., Head of Marketing \| \| Singh A B \| 59 \| General Manager - Milling Operations (FBD) \| 20,07,637 \| 74,96,921 \| Diploma, M.A. \| 32 \| 02.12.2015 \| Cargill India Pvt. Ltd., EM - Lead \| ``` ``` SECTION: Employee Details \| Name \| Age \| Designation \| Gross Remuneration (₹) \| Net Remuneration (₹) \| Qualifications \| Experience (Years) \| Date of Commencement of Employment \| Previous Employment and Position Held \| \|---\|---\|---\|---\|---\|---\|---\|---\|---\| \| Singh G \| 42 \| General Manager - Operations - Juices (FBD) \| 1,17,12,214 \| 61,15,113 \| B.Tech., P.G.C.B.M. \| 19 \| 28.12.2016 \| Tilda Hain India Pvt.
Ltd., Head of Production Planning \| \| Singh J \| 58 \| Corporate Financial Controller \| 4,43,30,047 \| 2,02,86,036 \| B.Com. (Hons.), A.C.A. \| 36 \| 01.04.1990 \| Lovelock & Lewes, Jr. Asst. \| \| Singh T \| 51 \| Head F&B and Operations Support (HD) \| 1,15,35,738 \| 53,84,591 \| B.A. \| 28 \| 25.06.2012 \| Jet Airways India Ltd., General Manager - Service Delivery \| \| Singh V P \| 43 \| V.P. - Employee Relations (FBD) \| 1,72,84,853 \| 83,69,689 \| B.A. (Hons.), P.G.D.M. \| 20 \| 18.07.2007 \| Tata Motors Ltd., HR Manager \| \| Singhi R K \| 59 \| Executive V.P. & Company Secretary \| 3,45,41,944 \| 1,81,49,988 \| B.Com. (Hons.), LL.B., F.C.S. \| 39 \| 01.08.1988 \| Chemcrown (I) Ltd., Asst. Secretary \| \| Sipani S K \| 57 \| Head of Finance, Matches & Agarbatti SBU \| 83,26,340 \| 86,28,219 \| B.Com., A.C.A., A.C.S., P.G.D.B.M. \| 35 \| 01.10.1997 \| All India Tobacco Co. Ltd., Company Secretary \| \| Siva K K N \| 49 \| General Manager - Leaf Operations (Traditional) Tobacco SBU (ABD) \| 5,64,738 \| 57,23,398 \| B.Sc. (Agriculture), M.Sc. (Agriculture) \| 26 \| 19.01.1998 \| Nil \| \| Somani S \| 50 \| General Manager - Corporate Audit \| 52,91,042 \| 67,63,463 \| B.Com., C.W.A., C.S., A.C.A. \| 27 \| 11.12.2000 \| Indian Rayon & Industries Ltd., Assistant Manager \| \| Songadwala Z S \| 55 \| V.P. Operations (HD) \| 77,00,626 \| 80,21,698 \| Bachelors in Hotel Management \| 33 \| 01.02.1991 \| @ \| \| Sood A \| 40 \| General Manager & Head of Manufacturing - Confectionery, Chocolates & Coffee (FBD) \| 45,87,146 \| 77,30,658 \| B.Tech. \| 18 \| 17.06.2013 \| Asian Paints Ltd., Manager - Production \| \| Sri D K \| 39 \| General Manager & Head of Manufacturing - Snacks, Noodles & Pasta (FBD) \| 30,58,715 \| 69,15,855 \| B.Tech., M.Tech. \| 16 \| 10.06.2008 \| Nil \| \| Srinivas K \| 59 \| Chief Technologist - Blending & Cigarette Design (ITD) \| 9,94,657 \| 1,43,67,721 \| B.Sc., M.Sc. \| 36 \| 22.08.1988 \| Nil \| \| Srinivas P \| 59 \| Head - R&D - Tobacco SBU (ABD) \| 11,00,648 \| 61,34,143 \| B.Sc. (Agriculture), M.Sc. (Agriculture), Ph.D. \| 37 \| 17.08.1987 \| Nil \| \| Srinivas S \| 50 \| V.P. - Marketing (PCPBD) \| 59,53,860 \| 1,18,67,593 \| B.E., P.G.D.M. \| 26 \| 01.06.2000 \| Computational Structural Mechanics Pvt. Ltd., Marketing Executive \| \| Srinivasan V \| 55 \| General Manager - Media (FBD) \| 9,56,261 \| 67,27,256 \| B.Sc. \| 30 \| 16.07.2015 \| Britannia Industries Ltd., Media Co-ordinator \| \| Srinivasan V P \| 51 \| Senior Principal Technologist - PMD Process Development (ITD) \| 1,14,617 \| 1,15,91,312 \| Diploma in Mech. Engg., B.S. (Engg. Technology) \| 31 \| 23.02.1999 \| Union Carbide, Officer \| \| Sriram S \| 49 \| Principal Technologist - New Sciences & Technology (ITD) \| 17,10,217 \| 72,22,002 \| B.E., M.B.A. \| 28 \| 17.02.2000 \| M/s. Greaves Ltd., Junior Manager \| \| Srivastava S \| 45 \| General Manager - Supply Chain PCP & MAB (TM & D) \| 21,32,458 \| 68,49,055 \| B.E., E.P.G.D.M. \| 17 \| 13.08.2012 \| ABB Ltd., SCM Manager \| \| Stephanos K G \| 59 \| Executive V.P. - Finance, MIS & T&RA (ITD) \| 60,37,940 \| 1,69,52,034 \| B.Com. (Hons.), A.C.A. \| 36 \| 01.07.1988 \| PricewaterhouseCoopers Pvt. Ltd., Jr. Officer \| \| Subramanian V \| 52 \| General Manager - Manufacturing, Projects & EHS (PCPBD) \| 48,38,791 \| 68,49,410 \| B.E. \| 30 \| 06.10.2006 \| Asian Paints Ltd., Manager \| \| Sule S \| 58 \| Divisional Chief Executive (TM & D) \| 29,27,043 \| 2,42,09,588 \| B.Com., M.I.B. \| 34 \| 16.07.1990 \| Bayer India Ltd., Management Trainee \| \| Sundar S S S \| 54 \| General Manager - Factory Operations, Tobacco SBU (ABD) \| 6,16,935 \| 57,25,594 \| D.M.E., B.E., M.E., M.B.A.
\| 28 \| 28.12.2011 \| Hindustan Zinc Ltd., Senior Manager - Business Excellence \| SECTION: Information pursuant to Section 197 of the Companies Act, 2013 read with Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 \| Name \| Age \| Designation \| Gross Remuneration (₹) \| Net Remuneration (₹) \| Qualifications \| Experience (Years) \| Date of Commencement of Employment \| Previous Employment and Position Held \| \|---\|---\|---\|---\|---\|---\|---\|---\|---\| \| Sundaram A S (Dr.) \| 57 \| General Counsel and Head of Corporate Legal \| 5,09,40,611 \| 2,40,08,276 \| B.L., M.L., Ph.D. \| 35 \| 20.10.1997 \| Maxworth Home Ltd., Manager, Legal \| \| Suryavanshi R \| 46 \| V.P. - Competency Development & HR (TM & D) \| 2,35,45,775 \| 1,14,39,280 \| B.M.S., P.G.D.M. \| 22 \| 16.07.2003 \| Gabriel India Ltd., Mgmt. Trainee \| \| Tandan S \| 64 \| On deputation \| 3,54,21,226 \| 1,59,02,209 \| B.A. (Hons.), A.C.A. \| 38 \| 01.10.1985 \| Nil \| \| Tantry P R \| 47 \| General Manager - Manufacturing - Staples and Adjacencies (FBD) \| 1,06,82,373 \| 67,27,609 \| B.E. \| 26 \| 19.05.2003 \| Hindustan Unilever Ltd., Production Officer \| \| Tayal G \| 43 \| SBU Chief Executive - Matches & Agarbatti SBU \| 3,31,31,286 \| 1,52,59,175 \| B.Tech. \| 21 \| 09.06.2003 \| Nil \| \| Thakar A \| 57 \| Executive V. P. - Finance, IT & Procurement (HD) \| 24,76,261 \| 1,73,01,568 \| B.Com. (Hons.), A.C.A., M.B.A. \| 31 \| 30.06.1992 \| Nil \| \| Tripathy P K \| 53 \| General Manager - Sales and Manufacturing - Fresh Dairy (FBD) \| 25,34,390 \| 79,19,151 \| B.Sc., P.G.B.M. \| 28 \| 06.06.2018 \| Metro Dairy Ltd., CEO \| \| Tunuguntla M R \| 43 \| General Manager - Finance - Staples and Adjacencies (FBD) \| 95,60,207 \| 90,73,829 \| B.Com., M.Com., A.C.A., D.I.R.M. \| 22 \| 04.05.2005 \| Chemplast Sanmar Ltd., Asst. Executive Manager \| \| Tyagi K K (Dr.) \| 48 \| Principal Scientist - Analytical Standard (ITD) \| 27,05,180 \| 78,88,513 \| B.Sc., M.Sc., Doctorate \| 27 \| 01.07.2003 \| Forest Research Institute, Research Fellow \| \| Vaidya T \| 38 \| General Manager & ICML Head (FBD) \| 28,83,407 \| 70,61,079 \| B.Tech., M.Tech. \| 13 \| 01.06.2011 \| Nil \| \| Vashist K \| 40 \| General Manager - HR (FBD) \| 15,31,801 \| 60,59,573 \| B.Com., P.G.D.H.R.M. \| 16 \| 01.07.2022 \| Titan Co., Group Manager - HR \| \| Vashistha S \| 38 \| General Manager - Sales & Category Development - Foods (TM & D) \| 44,12,926 \| 75,45,022 \| B.Tech., P.G.D. \| 16 \| 10.06.2008 \| Nil \| \| Vasireddy V V \| 50 \| Operations Manager \| 20,04,290 \| 70,82,642 \| B.Sc. (Hons.), M.Sc. (Agriculture) \| 26 \| 01.08.2007 \| APWELL Project, Agricultural Production Trainee \| \| Ved U K \| 42 \| Head - Consumer Insights (PCPBD) \| 9,50,463 \| 54,99,095 \| B.Com., M.M.S. \| 19 \| 06.12.2021 \| Aditya Birla Management Corporation Pvt. Ltd., Asst. V.P. \| \| Veeraswamy P \| 51 \| Vice President - HR (ABD) \| 11,50,504 \| 1,10,47,225 \| B.Com., M.A. (P.M. & I.R.) \| 26 \| 19.12.2013 \| Creamline Dairy Products Ltd., General Manager - HR \| \| Veerubhotla V P \| 44 \| V.P. & Head of Consumer Insights & Analytics (FBD) \| 11,92,810 \| 1,05,34,052 \| B.Sc., M.Sc. (Statistics) \| 21 \| 31.05.2012 \| Nielsen Bases, Manager \| \| Venkata R K \| 38 \| General Manager Marketing - Value Added Atta, Salt & Adjacencies (FBD) \| 10,89,109 \| 67,74,071 \| B.E., P.G.D.M. \| 15 \| 01.06.2011 \| Wabco TVS India Ltd., Software Engineer \| \| Venkataram Reddy P \| 57 \| General Manager - Exports, Tobacco SBU (ABD) \| 8,91,047 \| 61,20,492 \| B.Sc., P.G.D.M. \| 33 \| 23.11.1990 \| Apollo Hospital, Marketing Executive \| \| Venkataraman S N \| 60 \| Chief Executive (PPB - SBU) \| 44,17,282 \| 1,59,53,679 \| B.Sc., M.B.A. \| 39 \| 29.06.1985 \| Nil \| \| Venneti S P Rao \| 57 \| Executive V.P. - Marketing & Commercial (PSPD) \| 52,24,446 \| 1,37,98,517 \| B.E., P.G.D. \| 25 \| 20.06.2011 \| Century Pulp & Paper, President \| \| Verma A \| 41 \| General Manager - Operations (FBD) \| 70,38,239 \| 97,20,712 \| B.Tech.
\| 19 \| 23.08.2010 \| Nestle India Ltd., Project Manager \| \| Vijayakrishnan V (Dr.) \| 57 \| Chief Scientist & Head - Product Development and R&D (PCPBD) \| 11,57,499 \| 1,36,90,331 \| B.Sc., M.Sc., Ph.D. \| 28 \| 02.05.2017 \| Unilever Inc., Global R & D - Design Director \| \| Vikram R \| 53 \| Senior Associate General Counsel \| 65,89,161 \| 98,75,577 \| B.A., LL.B. \| 29 \| 18.07.2005 \| M/s. Janardana & Janardana, Partner \| \| Vinayaka H C \| 60 \| V.P. - Technical Services, Sustainability & EHS (HD) \| 31,36,032 \| 1,11,72,330 \| B.E. (Mech.) \| 36 \| 23.05.2001 \| @ \| \| Vishwanath N D \| 53 \| General Manager & ICML Head (FBD) \| 13,42,128 \| 70,13,255 \| B.Tech. \| 32 \| 01.10.1997 \| McNally Bharat Engg. Co. Ltd., Assistant Manager \| \| Vodela P K \| 54 \| Senior Principal Technologist - Blending & Cigarette Design (ITD) \| 64,64,144 \| 77,11,454 \| B.Com., M.B.A. \| 29 \| 01.07.1996 \| The Professional Couriers Pvt. Ltd., Assistant Branch Manager \| \| Wali P \| 54 \| Executive V.P. - Strategic Projects (FBD) \| 21,01,648 \| 1,51,34,366 \| B.Tech., Sloan Fellowship in Management (London School of Business) \| 33 \| 16.08.1991 \| Nil \| \| Wariah D S \| 57 \| V.P. & Head of Product Development - Snacks (FBD) \| 46,14,926 \| 1,32,65,845 \| B.E. \| 34 \| 05.04.2005 \| Pepsico India Holdings Pvt. Ltd., G.M. \| \| Yadav A \| 59 \| General Manager - T&RA (TM & D) \| 20,42,298 \| 68,76,649 \| B.A., Certificate Course in Business Management \| 37 \| 15.11.2007 \| Indian Army, Lieutenent Colonel \| \| Yadav S M \| 54 \| Executive V.P. - Technology & Manufacturing (FBD) \| 56,49,400 \| 1,66,56,155 \| B.E., Dip. in International Business \| 34 \| 24.08.2016 \| Mondelez International, Associate Director - Asia Pacific (Engineering) \| \| Yarram Reddy S R \| 52 \| Senior Associate General Counsel \| 56,10,339 \| 78,67,273 \| B.A., LL.B. \| 27 \| 16.06.2021 \| Pernod Ricard India Pvt. Ltd., GM - Legal \| SECTION: Other employees employed for a part of the year and in receipt of remuneration aggregating ₹ 8,50,000/- or more per month \| Name \| Age \| Designation \| Gross Remuneration (₹) \| Net Remuneration (₹) \| Qualifications \| Experience (Years) \| Date of Commencement of Employment \| Previous Employment and Position Held \| \|---\|---\|---\|---\|---\|---\|---\|---\|---\| \| Abraham C (Dr.) \| 60 \| Chief Executive - Healthcare \| 2,45,57,697 \| 1,39,44,452 \| M.B.B.S., Adv. Dip. in Healthcare Administration \| 30 \| 02.05.2018 \| Health City Cayman Islands, CEO & Head of Medical Services \| \| Aggarwal M \| 48 \| V.P.- Finance (HD) \| 2,26,78,026 \| 1,17,66,249 \| B.Com. (Hons.), A.C.A. \| 27 \| 20.11.2000 \| % \| \| Anand N \| 67 \| Executive Director \| 13,71,16,719 \| 7,21,86,724 \| B.A. (Hons.) \| 44 \| 01.12.1979 \| @ \| \| Batra J K \| 53 \| On deputation \| 93,36,153 \| 50,94,840 \| B.Com., M.Com., A.C.A. \| 28 \| 17.06.1996 \| # \| \| Bhattacharjee A \| 60 \| V.P. - Information Systems (HD) \| 1,96,24,320 \| 1,00,00,953 \| B.E. (Industrial & Production) \| 35 \| 09.07.2001 \| @ \| \| Chatterjee K \| 63 \| V.P. & Head of Packaging Development (FBD) \| 2,00,95,466 \| 1,05,67,536 \| Dip. in Mech. Engg. \| 38 \| 15.10.2001 \| Agrotech Foods Ltd., Manager - Packaging & Development \| ``` ``` SECTION: Employee Details \| Name \| Age \| Position \| Salary (in `) \| Bonus (in `) \| Total Compensation (in `) \| Other Benefits \| Education \| Experience (Years) \| Joining Date \| Previous Company \| Previous Position \| \|---------------\|-----\|-------------------------------------------------------\|----------------\|--------------\|---------------------------\|----------------\|--------------------------------\|--------------------\|----------------\|-------------------------------------\|----------------------------------\| \| Saha G K \| 60 \| General Manager - Contracts & Purchase - Central Projects Organisation \| 94,95,972 \| 47 \| 13,441 \| B.E. (Mechanical) \| 35 \| 15.10.2008 \| CESC Ltd. \| Manager - Material Purchase \| \| Saraf A \| 42 \| On deputation \| 1 \| 29 \| 17,971 \| B.Com. (Hons.), A.C.A. \| 20 \| 01.06.2005 \| S.R. Batliboi & Co. \| Executive \| \| Sengupta P \| 47 \| Chief Digital & Information Officer \| 52,93,419 \| 33 \| 71,429 \| B.Tech. (Electronics), M.B.A. (Marketing) \| 26 \| 05.02.2024 \| Ernst & Young \| Partner Tech Consulting \| \| Sharma Rahul \| 51 \| Chief Digital Information Officer (FBD) \| 1 \| 32 \| 31,511 \| B.E., M.A., P.M.P.
\| 28 \| 21.08.2023 \| Reckitt Benckiser India \| Regional IT & Digital Director \| \| Singh A P \| 41 \| On deputation \| 17 \| 12 \| 083 \| B.Tech., P.G.D.M. \| 18 \| 05.05.2008 \| Dabur India Ltd. \| Area Sales Manager \| \| Thakur N N \| 60 \| Executive V.P. - Sales & Category Development - Cigarettes (TM & D) \| 2 \| 43 \| 06,066 \| B.Sc., P.G.D.M. \| 37 \| 01.09.1987 \| Nil \| \| \| Varghese M (Dr.) \| 60 \| Senior Principal Scientist - Agro Forestry (LSTC) \| 92 \| 26 \| 609 \| B.Sc. (Agri), M.Sc. (Forestry), Ph.D. - Botany \| 33 \| 14.02.2007 \| Indian Council of Forestry Research & Education \| Scientist - Gr: E \| SECTION: Abbreviations denote: - ITD: India Tobacco Division - PSPD: Paperboards & Specialty Papers Division - ABD: Agri Business Division - HD: Hotels Division - FBD: Foods Business Division - PCPBD: Personal Care Products Business Division - @ Previously employed with erstwhile ITC Hotels Ltd. which was merged with the Company on March 23, 2005. - # Previously employed with erstwhile ITC Bhadrachalam Paperboards Ltd. which was merged with the Company on March 13, 2002. - % Was on deputation to an Associate Company and reverted on April 21, 2023. SECTION: Notes: 1. Remuneration includes salary, performance bonus, long term incentives, allowances, contribution to the approved Provident Fund & Pension Funds & other benefits/applicable perquisites borne by the Company, except the contribution to approved Gratuity Funds and provisions for leave encashment which are actuarially determined on an overall Company basis. The term ‘remuneration’ has the meaning assigned to it under the Companies Act, 2013. 2. The Company grants Stock Options to the Directors, Key Managerial Personnel and other employees under its Employee Stock Option Schemes at ‘market price’ [within the meaning of the Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021]. Since such Stock Options are not tradeable, no perquisite or benefit is immediately conferred upon the employee by grant of such Options and accordingly the said grant has not been considered as remuneration. 3. Net remuneration comprises cash income less: 1. income tax, surcharge (as applicable) & education cess deducted at source 2. employees’ own contribution to Provident Fund. 4. All appointments are/were contractual in accordance with terms and conditions as per Company rules. 5. None of the above employees is a relative of any Director of the Company. 6. The above list does not include employees who are on deputation and whose cost is not borne by the Company. SECTION: Board of Directors - S. PURI, Chairman & Managing Director (DIN: 00280529) - S. DUTTA, Director & Chief Financial Officer (DIN: 01804345) - Kolkata, 23rd May, 2024 SECTION: Financial Report for the Financial Year Ended 31st March, 2024 SECTION: Key Financial Ratios [Pursuant to Schedule V(B) to the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015] \| Ratio \| FY24 \| FY23 \| \|-----------------------------------------\|------\|------\| \| (i) Operating Profit Margin (%) \| 38.0 \| 35.6 \| \| (ii) Net Profit Margin (%) \| 29.4 \| 26.9 \| \| (iii) Debtors Turnover \| 24.7 \| 32.5 \| \| (iv) Inventory Turnover \| 6.0 \| 6.7 \| \| (v) Current Ratio \| 2.9 \| 2.8 \| \| (vi) Return on Net Worth (%) \| 29.2 \| 29.0 \| SECTION: Auditor’s Report - The Corporate Governance Report prepared by ITC Limited contains details as specified in regulations 17 to 27, clauses (b) to (i) and (t) of sub-regulation (2) of regulation 46 and para C, D and E of Schedule V of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, for the year ended March 31, 2024. SECTION: Management’s Responsibility - The preparation of the Corporate Governance Report is the responsibility of the Management of the Company including the preparation and maintenance of all relevant supporting records and documents. SECTION: Auditor’s Responsibility - Our responsibility is to provide a reasonable assurance in the form of an opinion whether the Company has complied with the conditions of Corporate Governance as specified in the Listing Regulations. SECTION: Opinion - Based on the procedures performed, we are of the opinion that the Company has complied with the conditions of Corporate Governance as specified in the Listing Regulations for the year ended March 31, 2024. SECTION: CEO and CFO Compliance Certificate We, S. Puri, Chairman & Managing Director and S.
Dutta, Director & Chief Financial Officer certify that: 1. We have reviewed the Financial Statements including the Cash Flow Statement for the year ended 31st March, 2024 and to the best of our knowledge and belief: 1. these Statements do not contain any materially untrue statement or omit any material fact or contain statements that might be misleading; 2. these Statements together present a true and fair view of the Company’s affairs and are in compliance with the Indian Accounting Standards, applicable laws and regulations. 2. To the best of our knowledge and belief, no transactions entered into by the Company during the year ended 31st March, 2024 are fraudulent, illegal or violative of the ITC Code of Conduct. 3. We accept responsibility for establishing and maintaining internal controls for financial reporting and we have evaluated the effectiveness of internal control systems of the Company pertaining to financial reporting. SECTION: Standalone Balance Sheet as at 31st March, 2024 \| Note \| As at 31st March, 2024 (` in Crores) \| As at 31st March, 2023 (` in Crores) \| \|------\|--------------------------------------\|--------------------------------------\| \| ASSETS \| \| \| \| Non-current assets \| \| \| \| (a) Property, Plant and Equipment \| 22015.50 \| 20491.32 \| \| (b) Capital work-in-progress \| 1077.97 \| 1681.47 \| \| (c) Investment Property \| 373.09 \| 352.26 \| \| (d) Goodwill \| 577.20 \| - \| \| (e) Other Intangible assets \| 2055.74 \| 2037.42 \| \| (f) Intangible assets under development \| 9.07 \| 15.13 \| \| (g) Right-of-use assets \| 721.69 \| 715.91 \| \| (h) Financial Assets \| \| \| \| (i) Investments \| 22821.94 \| 16363.55 \| \| (ii) Loans \| 2.63 \| 4.07 \| \| (iii) Others \| 372.88 \| 3608.23 \| \| (i) Other non-current assets \| 1229.22 \| 1211.74 \| \| Current assets \| \| \| \| (a) Inventories \| 12631.51 \| 10593.90 \| \| (b) Financial Assets \| \| \| \| (i) Investments \| 11916.88 \| 16357.07 \| \| (ii) Trade receivables \| 3311.45 \| 2321.33 \| \| (iii) Cash and cash equivalents \| 197.63 \| 206.88 \| \| (iv) Other Bank Balances \| 6020.06 \| 3624.38 \| \| (v) Loans \| 9.10 \| 5.95 \| \| (vi) Others \| 849.86 \| 705.84 \| \| (c) Other current assets \| 1134.18 \| 1388.09 \| \| TOTAL ASSETS \| 87327.60 \| 82261.74 \| \| EQUITY AND LIABILITIES \| \| \| \| (a) Equity Share capital \| 1248.47 \| 1242.80 \| \| (b) Other Equity \| 70984.83 \| 66351.00 \| \| Liabilities \| \| \| \| (a) Financial Liabilities \| \| \| \| (i) Borrowings \| 1.76 \| 3.28 \| \| (ii) Lease liabilities \| 261.95 \| 273.59 \| \| (iii) Other financial liabilities \| 109.87 \| 152.49 \| \| (b) Provisions \| 221.45 \| 201.83 \| \| (c) Deferred tax liabilities (Net) \| 2083.66 \| 1621.13 \| \| (a) Financial Liabilities \| \| \| \| (i) Borrowings \| 1.52 \| 1.26 \| \| (ii) Lease liabilities \| 46.74 \| 46.54 \| \| (iii) Trade payables \| \| \| \| Total outstanding dues of micro enterprises and small enterprises \| 206.85 \| 137.50 \| \| Total outstanding dues of creditors other than micro enterprises and small enterprises \| 4282.70 \| 4213.76 \| \| (iv) Other financial liabilities \| 1659.33 \| 1730.68 \| \| (b) Other current liabilities \| 5389.75 \| 5446.16 \| \| (c) Provisions \| 68.72 \| 63.59 \| \| (d) Current Tax Liabilities (Net) \| 760.00 \| 776.13 \| \| TOTAL EQUITY AND LIABILITIES \| 87327.60 \| 82261.74 \| The accompanying notes 1 to 31 are an integral part of the Standalone Financial Statements.
SECTION: Standalone Statement of Profit and Loss for the year ended 31st March, 2024 ``` ``` SECTION: Revenue From Operations Revenue From Operations: 70105.29, 70251.28 SECTION: Other Income Other Income: 3538.28, 2437.61 SECTION: Total Income (I+II) Total Income: 73643.57, 72688.89 SECTION: EXPENSES Cost of materials consumed Cost of materials consumed: 21309.84, 19809.83 Purchases of Stock-in-Trade Purchases of Stock-in-Trade: 6042.97, 9109.85 Changes in inventories of finished goods, Stock-in-Trade, work-in-progress and intermediates Changes in inventories: (370.71), (39.50) Excise duty Excise duty: 4664.48, 4208.01 Employee benefits expense Employee benefits expense: 3732.23, 3569.46 Finance costs Finance costs: 45.73, 41.81 Depreciation and amortization expense Depreciation and amortization expense: 1647.82, 1662.73 Other expenses Other expenses: 10247.87, 9649.16 SECTION: Total expenses (IV) Total expenses: 47320.23, 48011.35 SECTION: Profit before exceptional items and tax (III-IV) Profit before exceptional items and tax: 26323.34, 24677.54 SECTION: Exceptional Items Exceptional Items: (7.57), 72.87 SECTION: Profit before tax (V+VI) Profit before tax: 26315.77, 24750.41 SECTION: Tax expense Current Tax Current Tax: 5661.21, 6025.32 Deferred Tax Deferred Tax: 232.59, (28.22) SECTION: Profit for the year (VII-VIII) Profit for the year: 20421.97, 18753.31 SECTION: Other Comprehensive Income A (i) Items that will not be reclassified to profit or loss Remeasurements of the defined benefit plans: (22.97), (21.81) Equity instruments through other comprehensive income: 2515.06, 91.90 Effective portion of gains / (losses) on designated portion of hedging instruments in a cash flow hedge: (10.46), 21.22 (ii) Income tax relating to items that will not be reclassified to profit or loss Income tax relating to items: (228.72), (0.34) B (i) Items that will be reclassified to profit or loss Debt instruments through other comprehensive income: 17.91, (35.01) Effective portion of gains / (losses) on designated portion of hedging instruments in a cash flow hedge: 19.71, (47.45) (ii) Income tax relating to items that will be reclassified to profit or loss Income tax relating to items: (9.47), 20.75 SECTION: Other Comprehensive Income [A (i+ii) + B (i+ii)] Other Comprehensive Income: 2281.06, 29.26 SECTION: Total Comprehensive Income for the year (IX+X) Total Comprehensive Income: 22703.03, 18782.57 SECTION: Earnings per equity share (Face Value ` 1.00 each) (1) Basic (in `): 16.39, 15.15 (2) Diluted (in `): 16.35, 15.11 The accompanying notes 1 to 31 are an integral part of the Standalone Financial Statements. SECTION: Standalone Statement of Changes in Equity for the year ended 31st March, 2024 SECTION: A. Equity Share Capital (` in Crores) Balance at the beginning: 12.80, 1248.47 Balance at the end of the reporting year: 12.33, 1242.80 SECTION: B. Other Equity (` in Crores) Reserves and Surplus: Balance as at 1st April, 2023: 2.48, 13065.62, 741.45, 0.30, 363.05, 17585.31, 33687.70 Profit for the year: –, –, –, –, –, 20421.97, –, –, –, –, 20421.97 Other Comprehensive Income (net of tax): –, –, –, –, –, (17.18), 13.40, 2277.92, 6.92, –, 2281.06 Total Comprehensive Income for the year: –, –, –, –, –, 20404.79, 13.40, 2277.92, 6.92, –, 22703.03 SECTION: Capital Reserve This Reserve represents the difference between value of the net assets transferred to the Company in the course of business combinations and the consideration paid for such combinations. SECTION: Securities Premium This Reserve represents the premium on issue of shares and can be utilized in accordance with the provisions of the Companies Act, 2013. SECTION: Share Options Outstanding Account This Reserve relates to stock options granted by the Company to employees under ITC Employee Stock Option Schemes. This Reserve is transferred to Securities Premium or Retained Earnings on exercise or lapse of vested options. SECTION: Capital Redemption Reserve This Reserve has been transferred to the Company in the course of business combinations and can be utilized in accordance with the provisions of the Companies Act, 2013. SECTION: Contingency Reserve This Reserve has been created out of Retained Earnings, as a matter of prudence, to take care of any unforeseen adverse developments in pending legal disputes. SECTION: General Reserve This Reserve has been created by an appropriation from one component of equity (generally Retained Earnings) to another, not being an item of Other Comprehensive Income. The same can be utilized in accordance with the provisions of the Companies Act, 2013. SECTION: Retained Earnings This Reserve represents the cumulative profits of the Company and effects of remeasurement of defined benefit obligations. This Reserve can be utilized in accordance with the provisions of the Companies Act, 2013.
SECTION: Debt Instruments through Other Comprehensive Income This Reserve represents the cumulative gains (net of losses) arising on revaluation of Debt Instruments measured at Fair Value through Other Comprehensive Income, net of amounts reclassified, if any, to profit or loss when those instruments are disposed of. SECTION: Equity Instruments through Other Comprehensive Income This Reserve represents the cumulative gains (net of losses) arising on revaluation of Equity Instruments measured at Fair Value through Other Comprehensive Income, net of amounts reclassified, if any, to Retained Earnings when those instruments are disposed of. SECTION: Effective portion of Cash Flow Hedges This Reserve represents the cumulative effective portion of changes in Fair Value of hedging instrument that are designated as Cash Flow Hedges. It will be reclassified to profit or loss or included in the carrying amount of the non-financial asset in accordance with the Company’s accounting policy. SECTION: Foreign Currency Translation Reserve This Reserve contains the accumulated balance of foreign exchange differences arising on monetary items that, in substance, form part of the Company’s net investment in a foreign operation whose functional currency is other than Indian Rupee. Exchange differences previously accumulated in this Reserve are reclassified to profit or loss on disposal of the foreign operation. The accompanying notes 1 to 31 are an integral part of the Standalone Financial Statements. SECTION: Standalone Statement of Cash Flows SECTION: for the year ended 31st March, 2024 SECTION: A. Cash Flow from Operating Activities PROFIT BEFORE TAX: 26315.77, 24750.41 ADJUSTMENTS FOR: Depreciation and amortization expense: 1647.82, 1662.73 Share based payments to employees: 103.10, 58.50 Finance costs: 45.73, 41.81 Interest Income: (1592.41), (1434.53) Dividend Income: (990.35), (556.90) (Gain) / Loss on sale of property, plant and equipment, lease termination - Net: (54.07), 4.53 Inventory write-offs / write-downs (net of reversals): 149.62, 155.46 Doubtful and bad debts: 9.23, (0.93) Doubtful and bad advances, loans and deposits: 25.03, 1.16 Impairment of investment in joint venture: –, 8.50 Gain recognised on divestment of shares held in joint venture: (9.49), – Net gain arising on financial instruments measured at amortised cost / mandatorily measured at fair value through profit or loss: (784.82), (416.74) Foreign currency translations and transactions - Net: (6.28), (1456.89), 37.89, (438.52) OPERATING PROFIT BEFORE WORKING CAPITAL CHANGES Operating profit before working capital changes: 24858.88, 24311.89 ADJUSTMENTS FOR: Trade receivables, advances and other assets: (887.87), (603.25) Inventories: (2187.23), (751.59) Trade payables, other liabilities and provisions: 17.30, (3057.80), 755.24, (599.60) CASH GENERATED FROM OPERATIONS Cash generated from operations: 21801.08, 23712.29 Income tax paid (net of refunds) Income tax paid: (5682.85), (5800.59) NET CASH FROM OPERATING ACTIVITIES Net cash from operating activities: 16118.23, 17911.70 SECTION: B. Cash Flow from Investing Activities Purchase of property, plant and equipment, intangibles, ROU asset etc.: (2647.23), (1858.32) Sale of property, plant and equipment: 100.85, 48.86 Purchase of current investments: (64931.45), (72925.91) Sale/redemption of current investments: 67992.14, 67720.51 Payment towards contingent purchase consideration: –, (63.75) Investment in subsidiaries: (1050.35), (1184.14) Investment in associates: (86.26), (1.88) Investment in joint venture: (0.90), – Purchase of non-current investments: (2745.51), (2349.41) Sale / redemption of non-current investments: 2622.86, 4057.60 Redemption of investment in subsidiary: –, 18.00 Advance received towards divestment of shares held in joint venture: –, 56.00 Dividend received: 990.35, 556.90 Interest received: 1016.53, 1216.27 Investment in bank deposits (original maturity more than 3 months): (3578.11), (7427.20) Redemption / maturity of bank deposits (original maturity more than 3 months): 4446.34, 5476.33 Investment in deposit with housing finance company: –, (3500.00) Redemption / maturity of deposit with housing finance company: –, 5000.00 Loans given: (12.22), (8.21) Loans realised: 10.51, 8.98 NET CASH FROM / (USED IN) INVESTING ACTIVITIES Net cash from / (used in) investing activities: 2127.55, (5159.37) **SECTION: C.
Cash Flow from Financing Activities ``` ``` SECTION: Proceeds from Issue of Share Capital Proceeds from issue of share capital: 1442.83 (2024), 2477.39 (2023) SECTION: Repayment of Non-Current Borrowings Repayment of non-current borrowings: (1.26) (2024), (0.74) (2023) SECTION: Principal Payment of Lease Liabilities Principal payment of lease liabilities: (56.64) (2024), (51.97) (2023) SECTION: Interest Paid Interest paid: (46.02) (2024), (40.04) (2023) SECTION: Net Increase in Statutory Restricted Accounts Balances Net increase in statutory restricted accounts balances: 12.12 (2024), 14.94 (2023) SECTION: Dividend Paid Dividend paid: (19606.06) (2024), (15150.44) (2023) SECTION: Dividend Distribution Tax Refund Received Dividend distribution tax refund received: – (2024), 20.43 (2023) SECTION: Net Cash Used in Financing Activities NET CASH USED IN FINANCING ACTIVITIES: (18255.03) (2024), (12730.43) (2023) SECTION: Net (Decrease) / Increase in Cash and Cash Equivalents NET (DECREASE) / INCREASE IN CASH AND CASH EQUIVALENTS: (9.25) (2024), 21.90 (2023) SECTION: Opening Cash and Cash Equivalents OPENING CASH AND CASH EQUIVALENTS: 206.88 (2024), 184.98 (2023) SECTION: Closing Cash and Cash Equivalents CLOSING CASH AND CASH EQUIVALENTS: 197.63 (2024), 206.88 (2023) SECTION: Notes 1. The above Statement of Cash Flows has been prepared under the “Indirect Method” as set out in Ind AS - 7 “Statement of Cash Flows”. 2. CASH AND CASH EQUIVALENTS: - As at 31st March, 2024: 197.63 - As at 31st March, 2023: 206.88 - Unrealised gain / (loss) on foreign currency cash and cash equivalents: …, … - Cash and cash equivalents (Note 11): 197.63 (2024), 206.88 (2023) 3. Net Cash Flow from Operating Activities includes an amount of ` 436.16 Crores (2023 - ` 328.80 Crores) spent towards Corporate Social Responsibility. 4. Disclosure of change arising from financing activities in respect of lease liabilities - Refer Note 15. The accompanying notes 1 to 31 are an integral part of the Standalone Financial Statements. SECTION: Company Information ITC Limited (the ‘Company’) [CIN: L16005WB1910PLC001985] is a public limited company domiciled in India with its registered office located at Virginia House, 37 Jawaharlal Nehru Road, Kolkata 700 071. The Company’s shares are listed on the National Stock Exchange of India Limited, BSE Limited and The Calcutta Stock Exchange Limited. The Company is a diversified conglomerate with businesses spanning Fast-Moving Consumer Goods (Cigarettes & Cigars, Foods, Personal Care Products, Education & Stationery Products, Safety Matches and Agarbattis), Hotels, Paperboards, Paper and Packaging, and Agri Business. SECTION: 1. Material Accounting Policies SECTION: Statement of Compliance These financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 and amendments thereto. The financial statements have also been prepared in accordance with the relevant presentation requirements of the Companies Act, 2013. The Company adopted Ind AS from 1st April, 2016. SECTION: Basis of Preparation** The financial statements are prepared in accordance with the historical cost convention, except for certain items that are measured at amortised cost or fair value, as explained in the accounting policies. 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, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes in these financial statements is determined on such a basis, except for share-based payment transactions that are within the scope of Ind AS 102 – Share-based Payment, leasing transactions that are within the scope of Ind AS 116 – Leases, and measurements that have some similarities to fair value but are not fair value, such as net realisable value in Ind AS 2 – Inventories or value in use in Ind AS 36 – Impairment of Assets. The preparation of financial statements in conformity with Ind AS requires management to make judgements, estimates and assumptions that affect the application of the accounting policies and the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the year. Actual results could differ from those estimates. The estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period; they are recognised in the period of the revision and future periods if the revision affects both current and future periods. SECTION: Operating Cycle All assets and liabilities have been classified as current or non-current as per the Company’s normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013 and Ind AS 1 – Presentation of Financial Statements based on the nature of products and 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. SECTION: Property, Plant and Equipment Property, plant and equipment (PP&E) are stated at cost of acquisition or construction less accumulated depreciation and accumulated impairment, if any. For this purpose, cost includes deemed cost which represents the carrying value of PP&E recognised as at 1st April, 2015 measured as per the previous Generally Accepted Accounting Principles (GAAP). Cost is inclusive of inward freight, duties and taxes and incidental expenses related to acquisition. In respect of major projects involving construction, related pre-operational expenses form part of the value of assets capitalised. Expenses capitalised also include applicable borrowing costs for qualifying assets, if any. All upgradation/enhancements are charged off as revenue expenditure unless they bring similar significant additional benefits. An item of PP&E is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of asset. Any gain or loss arising on the disposal or retirement of an item of PP&E is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in Statement of Profit and Loss. Depreciation of these assets commences when the assets are ready for their intended use, which is generally on commissioning. Items of PP&E are depreciated in a manner that amortizes the cost (or other amount substituted for cost) of the assets after commissioning, less its residual value, over their useful lives as specified in Schedule II of the Companies Act, 2013 on a straight-line basis. Land is not depreciated. SECTION: Notes to the Standalone Financial Statements SECTION: 1. Material Accounting Policies (Contd.) The estimated useful lives of PP&E of the Company are as follows: - Buildings: 30-60 Years - Leasehold Improvements: Shorter of lease period or estimated useful lives - Plant and Equipment: 3-25 Years - Furniture and Fixtures: 8-10 Years - Vehicles: 8-10 Years - Office Equipment: 5 Years PP&E’s residual values, useful lives and method of depreciation are reviewed at each Balance Sheet date and changes, if any, are treated as changes in accounting estimate. SECTION: Goodwill and Other Intangible Assets SECTION: Goodwill Goodwill arising on Business Combination is carried at cost less any accumulated impairment losses. Goodwill is annually tested for impairment. Impairment loss, if any, to the extent the carrying amount exceeds the recoverable amount is charged off to the Statement of Profit and Loss as it arises and is not reversed. For impairment testing, goodwill is allocated to Cash Generating Unit (CGU) or group of CGUs to which it relates, which is not larger than an operating segment, and is monitored for internal management purposes. On disposal of the CGU or group of CGUs, attributable amount of goodwill is included in the determination of the profit or loss recognised in the Statement of Profit and Loss. SECTION: Other Intangible Assets Other Intangible Assets that the Company controls and from which it expects future economic benefits are capitalised upon acquisition and measured initially: 1. For assets acquired in a business combination, at fair value on the date of acquisition. 2. For separately acquired assets, at cost comprising the purchase price (including import duties and non-refundable taxes) and directly attributable costs to prepare the asset for its intended use. Internally generated assets for which the cost is clearly identifiable are capitalised at cost. Research expenditure is recognised as an expense when it is incurred. Development costs are capitalised only after the technical and commercial feasibility of the asset for sale or use has been established. Thereafter, all directly attributable expenditure incurred to prepare the asset for its intended use are recognised as the cost of such assets. Internally generated brands, websites and customer lists are not recognised as intangible assets.
The carrying value of intangible assets includes deemed cost which represents the carrying value of intangible assets recognised as at 1st April, 2015 measured as per the previous GAAP. After initial recognition, an intangible asset is carried at its cost less accumulated amortization and/or impairment losses. The useful life of an intangible asset is considered finite where the rights to such assets are limited to a specified period of time by contract or law (e.g. patents, licences, trademarks, franchise and servicing rights) or the likelihood of technical, technological obsolescence (e.g. computer software, design, prototypes) or commercial obsolescence (e.g. lesser known brands are those to which adequate marketing support may not be provided). If there are no such limitations, the useful life is taken to be indefinite. Intangible assets that have finite lives are amortized over their estimated useful lives by the straight-line method unless it is practical to reliably determine the pattern of benefits arising from the asset. An intangible asset with an indefinite useful life is not amortized. However, it is annually tested for impairment. Amortization expenses and impairment losses and reversal of impairment losses are included in the ‘Depreciation and amortization expense’ in the Statement of Profit and Loss. SECTION: The estimated useful lives of intangible assets of the Company with finite lives are as follows: - Trademarks / Know How, Business and Commercial Rights: 10 Years (unless shorter useful life is required based on contractual or legal terms) - Computer Software: 5 Years - Customer Relationships: 8 Years The useful lives of intangible assets are reviewed annually to determine if a reset of such useful life is required for assets with finite lives and to confirm that business circumstances continue to support an indefinite useful life assessment for assets so classified. Based on such review, the useful life may change or the useful life assessment may change from indefinite to finite. The impact of such changes is accounted for as a change in accounting estimate. SECTION: Investment Property Properties that are held for long-term rental yields and/or for capital appreciation are classified as investment properties. Investment properties are stated at cost of acquisition or construction less accumulated depreciation and impairment, if any. Depreciation is recognised using the straight line method so as to amortise the cost of investment properties over their useful lives as specified in Schedule II of the Companies Act, 2013. Freehold land and properties under construction are not depreciated. Transfers to, or from, investment properties are made at the carrying amount when and only when there is a change in use. An item of investment property is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of asset. Any gain or loss arising on the disposal or retirement of an item of investment property is determined as the difference between the sales proceeds and the carrying amount of the property and is recognised in the Statement of Profit and Loss. Income received from investment property is recognised in the Statement of Profit and Loss on a straight-line basis over the term of the lease. SECTION: Impairment of Assets Impairment loss, if any, is provided to the extent the carrying amount of assets or cash generating units exceeds their recoverable amount. Recoverable amount is higher of an asset’s fair value less costs of disposal and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset or cash generating unit and from its disposal at the end of its useful life. Impairment losses recognised in prior years are reversed when there is an indication that the impairment losses recognised no longer exist or have decreased. Such reversals are recognised as an increase in carrying amounts of assets to the extent that it does not exceed the carrying amounts that would have been determined (net of amortization or depreciation) had no impairment loss been recognised in previous years. SECTION: Inventories Inventories are stated at lower of cost and net realisable value. The cost is calculated on weighted average method. Cost comprises expenditure incurred in the normal course of business in bringing such inventories to their present location and condition and includes, where applicable, appropriate overheads based on normal level of activity. Net realisable value is the estimated selling price less estimated costs for completion and sale.
Obsolete, slow moving and defective inventories are identified from time to time and, where necessary, a provision is made for such inventories. SECTION: Foreign Currency Transactions The functional and presentation currency of the Company is Indian Rupee. Transactions in foreign currency are accounted for at the exchange rate prevailing on the transaction date. Gains/losses arising on settlement as also on translation of monetary items are recognised in the Statement of Profit and Loss. Exchange differences arising on monetary items that, in substance, form part of the Company’s net investment in a foreign operation (having a functional currency other than Indian Rupee) are recognised in other comprehensive income and accumulated in Foreign Currency Translation Reserve. SECTION: Derivatives and Hedge Accounting Derivatives are initially recognised at fair value and are subsequently remeasured to their fair value at the end of each reporting period. The resulting gains/losses are recognised in Statement of Profit and Loss immediately unless the derivative is designated and effective as a hedging instrument, in which case the resulting gain/loss is recognised as per the hedge accounting principles stated below. The Company complies with the principles of hedge accounting where derivative contracts and/or non-derivative financial assets/liabilities that are permitted under applicable accounting standards are designated as hedging instruments. At the inception of the hedge relationship, the Company documents the relationship between the hedging instrument and the hedged item, along with the risk management objectives and its strategy for undertaking hedge transaction, which can be a fair value hedge or a cash flow hedge. SECTION: (i) Fair Value Hedges Changes in fair value of the designated portion of hedging instruments that qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk. Such fair value changes are recognised in the line item relating to the hedged item in Statement of Profit and Loss. Hedge accounting is discontinued when the hedging instrument is derecognised, expires or is sold, terminated, or exercised, or when it no longer qualifies for hedge accounting. The fair value adjustment to the carrying amount of the hedged item arising from the hedged risk is amortised to profit or loss from that date. SECTION: (ii) Cash Flow Hedges The effective portion of changes in the fair value of hedging instruments that are designated and qualify as cash flow hedges is recognised in the other comprehensive income and accumulated as ‘Cash Flow Hedge Reserve’. The gains/losses relating to the ineffective portion are recognised immediately in the Statement of Profit and Loss. Amounts previously recognised and accumulated in other comprehensive income are reclassified to profit or loss when the hedged item affects the Statement of Profit and Loss. However, when the hedged item results in the recognition of a non-financial asset, such gains/losses are transferred from equity (but not as reclassification adjustment) and included in the initial measurement cost of the non-financial asset. Hedge accounting is discontinued when the hedging instrument is derecognised, expires or is sold, terminated, or exercised, or when it no longer qualifies for hedge accounting. Any gains/losses recognised in other comprehensive income and accumulated in equity at that time remain in equity and are reclassified when the underlying transaction is ultimately recognised. When an underlying transaction is no longer expected to occur, the gains/losses accumulated in equity are recognised immediately in the Statement of Profit and Loss. SECTION: Investment in Subsidiaries, Associates and Joint Ventures Investment in subsidiaries, associates and joint ventures are carried at cost less accumulated impairment, if any. SECTION: Financial Instruments, Financial Assets, Financial Liabilities and Equity Instruments Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the relevant instrument and are initially measured at fair value except for trade receivables that do not contain a significant financing component, which are measured at transaction price. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities measured at fair value through profit or loss) are added to or deducted from the fair value on initial recognition of financial assets or financial liabilities. Purchase or sale 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 when the Company commits to purchase or sell the asset.
SECTION: Financial Assets SECTION: Recognition Financial assets include Investments, Trade Receivables, Advances, Security Deposits, Cash and Cash equivalents. Such assets are initially recognised at fair value or transaction price, as applicable, when the Company becomes party to contractual obligations. The transaction price includes transaction costs unless the asset is being fair valued through the Statement of Profit and Loss. SECTION: Classification Management determines the classification of an asset at initial recognition depending on the purpose for which the assets were acquired. The subsequent measurement of financial assets depends on such classification. Financial assets are classified as those measured at: ``` ``` SECTION: Financial Asset Classification - (a) Amortised cost: Financial assets held solely for collection of cash flows arising from payments of principal and/or interest. - (b) Fair value through other comprehensive income (FVTOCI): Financial assets held for collection of cash flows and for sale. Measured at fair value, with unrealised gains and losses recognised in other comprehensive income. - (c) Fair value through profit or loss (FVTPL): Assets managed according to an investment strategy based on fair value. Measured at fair value, with unrealised gains and losses recognised in ‘other income’ in the Statement of Profit and Loss. Trade receivables, advances, security deposits, cash and cash equivalents are classified for measurement at amortised cost, while investments may fall under any of the aforementioned classes. An irrevocable election may be made for particular equity investments to present subsequent changes in fair value through other comprehensive income. SECTION: Impairment The Company assesses at each reporting date whether financial assets held at amortised cost and those measured at FVTOCI are tested for impairment based on available evidence. Expected credit losses are assessed, and loss allowances recognised if the credit quality has deteriorated significantly since initial recognition. SECTION: Reclassification Reclassification of financial assets occurs only when the business model changes, affecting all affected financial assets prospectively from the reclassification date. SECTION: Notes to the Standalone Financial Statements SECTION: 1. Material Accounting Policies (Contd.) Derecognition: Financial assets are derecognised when the right to receive cash flows has expired or has been transferred, and substantially all risks and rewards of ownership have been transferred. - (a) Amortised cost: Gain or loss recognised in the Statement of Profit and Loss. - (b) FVTOCI: Cumulative fair value adjustments reclassified to the Statement of Profit and Loss unless the asset is an equity investment, in which case adjustments are reclassified within equity. SECTION: Income Recognition Interest income is recognised in the Statement of Profit and Loss using the effective interest method. Dividend income is recognised when the right to receive it is established. SECTION: Financial Liabilities Borrowings, trade payables, and other financial liabilities are initially recognised at fair value and subsequently measured at amortised cost. Any discount or premium on redemption/settlement is recognised in the Statement of Profit and Loss as finance cost over the life of the liability. SECTION: Offsetting Financial Instruments Financial assets and liabilities are offset and the net amount included in the Balance Sheet where there is a legally enforceable right to offset and an intention to settle on a net basis. SECTION: Equity Instruments Equity instruments are recognised at the value of proceeds, net of direct costs of the capital issue. SECTION: Revenue Revenue is measured at the transaction price expected to be received for goods supplied and services rendered, net of returns and variable consideration estimates. Revenue from the sale of goods includes excise duties but excludes VAT and Goods and Services Tax. Recognition occurs when the Company performs its obligations, with timing based on control transfer. SECTION: Government Grant Government grants are recognised when there is reasonable assurance of compliance with conditions attached. Grants related to assets are deducted from the carrying amount, while those for specific expenditures are taken to the Statement of Profit and Loss. SECTION: Dividend Distribution Dividends are recognised in the period when approved by the Board of Directors or shareholders. SECTION: Employee Benefits Short-term employee benefits are expensed in the period in which the service is rendered. The Company contributes to defined benefit and defined contribution schemes, with liabilities recognised for expected payments. SECTION: Employee Share Based Compensation SECTION: Stock Options Stock Options are granted under the ITC Employee Stock Option Schemes. The cost is recognised based on fair value at grant date, recognised in the Statement of Profit and Loss over the performance/service period.
SECTION: Cash Settled Stock Appreciation Linked Reward (SAR) Plan Cash Settled SAR units are granted to eligible employees, with liabilities measured at fair value at grant date and remeasured until settled. SECTION: Leases The Company assesses contracts to determine if they contain a lease, recognising Right-of-Use (ROU) assets at cost less incentives. ROU assets are depreciated over the shorter of the lease term or useful life. SECTION: Taxes on Income Taxes comprise current and deferred taxes. Current tax is provided based on taxable income, while deferred tax is recognised on temporary differences. SECTION: Claims Claims against the Company not acknowledged as debts are disclosed after careful evaluation. SECTION: Provisions Provisions are recognised for legal or constructive obligations where an outflow of resources is probable and can be reliably estimated. SECTION: Operating Segments Operating segments are reported consistent with internal reporting provided to the chief operating decision-maker (CODM). SECTION: Financial and Management Information Systems The Company’s Accounting System unifies Financial and Cost Records to comply with the Companies Act, 2013. SECTION: Notes to the Standalone Financial Statements SECTION: 2. Use of Estimates and Judgements Management makes estimates and assumptions affecting reported amounts and disclosures. Revisions are recognised in the period of change. SECTION: A. Judgements in Applying Accounting Policies Judgements made in applying accounting policies significantly affect amounts recognised, particularly regarding the useful life of intangible assets. SECTION: B. Key Sources of Estimation Uncertainty Key assumptions include useful lives of assets, fair value measurements, and actuarial valuations. ``` ``` SECTION: Company’s Liability Towards Defined Benefit Obligation The determination of the Company’s liability towards defined benefit obligation to employees is made through independent actuarial valuation, including the determination of amounts to be recognized in the Statement of Profit and Loss and in Other Comprehensive Income. Such valuation depends upon assumptions determined after taking into account inflation, seniority, promotion, and other relevant factors such as supply and demand factors in the employment market. Information about such valuation is provided in notes to the financial statements. SECTION: Claims, Provisions and Contingent Liabilities The Company has ongoing litigations with various regulatory authorities and third parties. Where an outflow of funds is believed to be probable and a reliable estimate of the outcome of the dispute can be made based on management’s assessment of specific circumstances of each dispute and relevant external advice, management provides for its best estimate of the liability. Such accruals are by nature complex and can take a number of years to resolve and can involve estimation uncertainty. Information about such litigations is provided in notes to the financial statements. SECTION: Notes to the Standalone Financial Statements SECTION: Gross Block (` in Crores) SECTION: 3A. Property, Plant and Equipment - Particulars, As at 31st March, 2022, Additions, Withdrawals and adjustments, As at 31st March, 2023, Additions, Withdrawals adjustments, As at 31st March, 2024 - Total: 27785.76, 2536.28, 211.57, 30110.47, 3140.22, 247.08, 33003.61 SECTION: 3B. Capital work-in-progress - 2442.34, 1732.59, 2493.46, 1681.47, 2471.14, 3074.64, 1077.97 SECTION: 3C. Investment Property - 410.11, (0.52), 410.63, (41.40), 452.03 SECTION: 3D. Goodwill - 577.20, 577.20, 577.20 SECTION: 3E. Other Intangible assets (acquired) SECTION: Assets with indefinite life - Trademarks: 1889.78, 1889.78, 1889.78 SECTION: Assets with finite life - Trademarks, 30.57, 30.57, 30.57 - Computer Software, 237.40, 66.30, 3.37, 300.33, 49.69, 1.84, 348.18 - Know How, Business and Commercial Rights, 43.38, 0.51, 43.89, 12.51, 56.40 - Customer Relationships, 35.21, 35.21, 35.21 - Total: 2236.34, 66.81, 3.37, 2299.78, 62.20, 1.84, 2360.14 SECTION: 3F. Intangible assets under development - 23.84, 53.98, 62.69, 15.13, 52.40, 58.46, 9.07 SECTION: 3G. Right-of-use assets - Land: 516.63, 516.63, 9.09, 0.19, 525.53 - Buildings: 297.05, 71.39, 70.85, 297.59, 85.40, 39.54, 343.45 - Plant and Equipment: 48.63, 48.63, 6.80, 41.83 - TOTAL: 862.31, 71.39, 70.85, 862.85, 94.49, 46.53, 910.81 SECTION: Notes 1. a) The above includes the following assets given on operating lease: - Particulars, Gross Block, Accumulated Depreciation, Net Block, Charge for the year - Total: 252.69, 168.18, 84.51, 17.83, 272.29, 184.56, 87.73, 14.30 b) The amount of expenditure recognized in the carrying amount of property, plant and equipment in the course of construction is ` 129.01 Crores (2023 - ` 90.50 Crores). 2. Land includes certain lands at Munger with Gross Block - ` 1.16 Crores (2023 - ` 1.16 Crores) which stood vested with the State of Bihar under the Bihar Land Reforms Act, 1950 for which compensation has not yet been determined.
SECTION: Capital work-in-progress (CWIP) ageing schedule - Particulars, Less than 1 year, 1 - 2 years, 2 - 3 years, More than 3 years, Total - Projects in Progress: 655.86, 345.20, 140.10, 540.31, 1681.47 - Projects temporarily suspended: –, –, –, –, – SECTION: Completion schedule for Projects in Capital work-in-progress, which are overdue or have exceeded their cost compared to its original plan - Particulars, To be completed in Less than 1 year, 1 - 2 years, 2 - 3 years, More than 3 years - MXD - KOL: 633.54, –, –, – SECTION: Intangible assets under development (IAUD) ageing schedule - Particulars, Less than 1 year, 1 - 2 years, 2 - 3 years, More than 3 years, Total - Projects in Progress: 15.13, –, –, –, 15.13 - Projects temporarily suspended: –, –, –, –, – SECTION: Non-current investments - Face Value, As at 31st March, 2024, As at 31st March, 2023 - SECTION: 4. Non-current investments (Contd.) - SECTION: INVESTMENT IN EQUITY INSTRUMENTS - SECTION: In Subsidiaries (at cost unless stated otherwise) - Unquoted: - Gold Flake Corporation Limited, 10, 1,59,98,385, 16.00 - Russell Credit Limited, Fully paid, 10, 59,74,54,177, 619.29 - ITC Infotech India Limited, 10, 8,80,00,000, 616.18 - Landbase India Limited, 10, 31,70,00,000, 325.57 - Surya Nepal Private Limited (Ordinary Shares), Nepalese Rupee (NRS) 50 (2023 - NRS 100), 2,37,88,800, 10.15 - Srinivasa Resorts Limited, 10, 1,63,20,477, 18.53 - Fortune Park Hotels Limited, 10, 4,50,008, 0.45 - Bay Islands Hotels Limited, 100, 11,875, 0.12 - WelcomHotels Lanka (Private) Limited, No par value, 66,58,32,260, 1952.35 - Wimco Limited, 1, 18,50,81,193, 3.50 ``` ``` SECTION: Technico Pty Limited (Ordinary Shares) Impairment: ` 16.29 Crores (fully impaired) No par value: 1,00,15,502 Value: 31.88 SECTION: Technico Agri Sciences Limited Face Value: 10 Number: 3,79,62,800 Value: 121.00 SECTION: ITC Integrated Business Services Limited Face Value: 10 Number: 75,00,000 Value: 7.50 SECTION: ITC IndiVision Limited Face Value: 10 Number: 12,00,00,000 Value: 120.00 SECTION: North East Nutrients Private Limited Face Value: 10 Number: 5,54,80,000 Value: 55.48 SECTION: Pavan Poplar Limited Impairment: (cost ` 5.99 Crores, fully impaired) Face Value: 10 Number: 55,10,004 Value: – SECTION: Prag Agro Farm Limited Impairment: (cost ` 12.82 Crores, fully impaired) Face Value: 1 Number: 1,28,00,020 Value: – SECTION: ITC Fibre Innovations Limited Face Value: 10 Number: 20,00,00,000 Value: 200.00 SECTION: ITC Hotels Limited Face Value: 1 Number: 83,00,00,000 Value: 83.00 SECTION: In Associates (at cost unless stated otherwise) SECTION: Quoted - International Travel House Limited - Face Value: 10 - Number: 39,14,233 - Value: 21.87 - Gujarat Hotels Limited - Face Value: 10 - Number: 17,33,907 - Value: 1.94 SECTION: Unquoted - Delectable Technologies Private Limited - Face Value: 10 - Number: 2,386 - Value: 3.60 - Mother Sparsh Baby Care Private Limited - Face Value: 10 - Number: 100 - Value: 0.96 - Sproutlife Foods Private Limited - Reference: [Refer Note 28(ix)] - Face Value: 10 - Number: 2,443 - Value: 40.33 SECTION: Notes to the Standalone Financial Statements - Face Value - As at 31st March, 2024 - As at 31st March, 2023 - (Fully Paid unless stated otherwise) - Number (` in Crores) - Number (` in Crores) **SECTION: 4.
Non-current investments (Contd.) Brought forward: 4288.92, 3234.35 SECTION: INVESTMENT IN EQUITY INSTRUMENTS (Contd.) SECTION: In Joint Ventures (at cost unless stated otherwise) SECTION: Unquoted - Espirit Hotels Private Limited - Reference: [Refer Note 28(x)] - Face Value: 10 - Value: 4,65,09,200 - Value: 46.51 - Maharaja Heritage Resorts Limited - Face Value: 100 - Number: 1,80,000 - Value: 1.80 - Logix Developers Private Limited - Reference: [Refer Note 28(viii)] - Cost: ` 41.95 Crores (fully impaired) - Face Value: 10 - Number: 77,66,913 - Value: – SECTION: In Others (at fair value through other comprehensive income unless stated otherwise) SECTION: Quoted - EIH Limited - Face Value: 2 - Number: 8,56,21,473 - Value: 3848.69 - HLV Limited - Face Value: 2 - Number: 4,99,53,055 - Value: 130.13 - Tourism Finance Corporation of India Limited - Face Value: 10 - Number: 25,000 - Value: 0.43 - VST Industries Limited - Face Value: 10 - Number: 476 - Value: 0.17 SECTION: Unquoted - Andhra Pradesh Gas Power Corporation Limited - Face Value: 10 - Number: 8,04,000 - Value: – - Bihar Hotels Limited - Face Value: 2 - Number: 8,00,000 - Value: 0.04 - Woodlands Multispeciality Hospital Limited - Face Value: 10 - Number: 13,605 - Value: 0.01 - Mirage Advertising and Marketing Limited - Face Value: 10 - Number: 12,488 - Value: – SECTION: INVESTMENT IN PREFERENCE SHARES SECTION: In Subsidiaries (at amortised cost unless stated otherwise) SECTION: Unquoted - WelcomHotels Lanka (Private) Limited - Cost: (Cumulative Non-Convertible Redeemable Preference Shares) - No par value - Number: 38,33,73,340 - Value: 1527.42 - Wimco Limited - Cumulative Non-Convertible Redeemable Preference Shares - Face Value: 100 - Value: – - ITC IndiVision Limited - Cumulative Non-Convertible Redeemable Preference Shares - Face Value: 100 - Number: 2,20,00,000 - Value: 220.00 SECTION: Notes to the Standalone Financial Statements - Face Value - As at 31st March, 2024 - As at 31st March, 2023 - (Fully Paid unless stated otherwise) - Number (` in Crores) - Number (` in Crores) SECTION: 4. Non-current investments (Contd.) Brought forward: 10021.43, 6442.41 SECTION: INVESTMENT IN PREFERENCE SHARES (Contd.) SECTION: In Associates (at cost) SECTION: Unquoted - Delectable Technologies Private Limited - Compulsorily Convertible Cumulative Preference Shares - Face Value: 10 - Number: 7,759 - Value: 7.40 - Mother Sparsh Baby Care Private Limited - Compulsorily Convertible Cumulative Preference Shares - Face Value: 10 - Number: 3,837 - Value: 44.04 - Sproutlife Foods Private Limited - Reference: [Refer Note 28(ix)] - Compulsorily Convertible Preference Shares - Face Value: 10 - Number: 9,571 - Value: 184.67 SECTION: In Others (at fair value through profit or loss) SECTION: Unquoted - Blupin Technologies Private Limited - Compulsorily Convertible Cumulative Preference Shares - Face Value: 100 - Number: 2,980 - Value: 35.52 SECTION: INVESTMENT IN GOVERNMENT OR TRUST SECURITIES (at amortised cost) SECTION: Quoted - Government of India Zero Coupon Government Stock - Zero Coupon Government Stock - 22-Feb-2025 - Face Value: 100 - Number: 34,00,000 - Value: 30.62 - Zero Coupon Government Stock - 15-Jun-2025 - Face Value: 100 - Number: 10,20,000 - Value: 9.51 - Zero Coupon Government Stock - 22-Aug-2025 - Face Value: 100 - Number: 25,35,000 - Value: 23.31 - Zero Coupon Government Stock - 15-Dec-2025 - Face Value: 100 - Number: 36,34,800 - Value: 32.83 - Zero Coupon Government Stock - 17-Dec-2025 - Face Value: 100 - Number: 6,02,300 - Value: 5.42 - Zero Coupon Government Stock - 22-Feb-2026 - Face Value: 100 - Number: 25,35,000 - Value: 22.52 - Zero Coupon Government Stock - 15-Jun-2026 - Face Value: 100 - Number: 10,20,000 - Value: 8.89 - Zero Coupon Government Stock - 22-Aug-2026 - Face Value: 100 - Number: 63,54,400 - Value: 54.55 - Zero Coupon Government Stock - 15-Dec-2026 - Face Value: 100 - Number: 10,20,000 - Value: 8.58 - Zero Coupon Government Stock - 22-Feb-2027 - Face Value: 100 - Number: 40,11,000 - Value: 33.20 - Zero Coupon Government Stock - 15-Jun-2027 - Face Value: 100 - Number: 31,17,000 - Value: 25.32 - Zero Coupon Government Stock - 22-Aug-2027 - Face Value: 100 - Number: 48,54,400 - Value: 38.70 SECTION: Unquoted - Government Securities - Cost: ` 70000.00 - Value: – - National Savings Certificates (pledged with various Mandi Samitis) - Cost: ` 6000.00 - Value: … SECTION: Notes to the Standalone Financial Statements - Face Value - As at 31st March, 2024 - As at 31st March, 2023 - (Fully Paid unless stated otherwise) - Number (` in Crores) - Number (` in Crores) SECTION: 4.
Non-current investments (Contd.) Brought forward: 10555.90, 6795.19 SECTION: INVESTMENT IN BONDS IN THE NATURE OF DEBENTURES (at amortised cost) SECTION: Quoted SECTION: Tax Free Bonds - Secured, Redeemable & Non-Convertible - Issuer - Interest Rate - Maturity Date - Face Value - Number - As at 31st March, 2024 - As at 31st March, 2023 - Housing and Urban Development Corporation Limited - 7.07% - 01-Oct-2025 - Face Value: 10,00,000 - Number: 4,300 - Value: 432.13 - Previous Value: 433.65 - Housing and Urban Development Corporation Limited - 7.19% - 31-Jul-2025 - Face Value: 10,00,000 - Number: 150 - Value: 15.18 - Previous Value: 15.31 - Housing and Urban Development Corporation Limited - 7.39% - 08-Feb-2031 - Face Value: 1,000 - Number: 7,00,696 - Value: 70.07 - Previous Value: 70.07 - Housing and Urban Development Corporation Limited - 8.20% - 05-Mar-2027 - Face Value: 1,000 - Number: 5,00,000 - Value: 52.62 - Previous Value: 53.42 - India Infrastructure Finance Company Limited - 7.36% - 22-Jan-2028 - Face Value: 1,000 - Number: 3,00,000 - Value: 31.38 - Previous Value: 31.69 - India Infrastructure Finance Company Limited - 8.26% - 23-Aug-2028 - Face Value: 10,00,000 - Number: 1,175 - Value: 121.96 - Previous Value: 122.82 - India Infrastructure Finance Company Limited - 8.46% - 30-Aug-2028 - Face Value: 10,00,000 - Number: 1,300 - Value: 137.27 - Previous Value: 138.65 - India Infrastructure Finance Company Limited - 8.48% - 05-Sep-2028 - Face Value: 10,00,000 - Number: 1,780 - Value: 185.83 - Previous Value: 187.31 - Indian Railway Finance Corporation Limited - 7.07% - 21-Dec-2025 - Face Value: 1,000 - Number: 70,498 - Value: 7.13 - Previous Value: 7.18 - Indian Railway Finance Corporation Limited - 7.15% - 21-Aug-2025 - Face Value: 10,00,000 - Number: 250 - Value: 25.28 - Previous Value: 25.46 - Indian Railway Finance Corporation Limited - 7.19% - 31-Jul-2025 - Face Value: 10,00,000 - Number: 2,250 - Value: 225.26 - Previous Value: 225.38 - Indian Railway Finance Corporation Limited - 7.34% - 19-Feb-2028 - Face Value: 1,000 - Number: 1,00,000 - Value: 10.51 - Previous Value: 10.63 - Indian Railway Finance Corporation Limited - 8.48% - 21-Nov-2028 - Face Value: 10,00,000 - Number: 1,250 - Value: 130.20 - Previous Value: 131.09 - Indian Railway Finance Corporation Limited - 8.55% - 12-Feb-2029 - Face Value: 10,00,000 - Number: 130 - Value: 13.60 - Previous Value: 13.69 - National Bank for Agriculture and Rural Development - 7.07% - 25-Feb-2026 - Face Value: 10,00,000 - Number: 2,000 - Value: 203.14 - Previous Value: 204.71 - National Highways Authority of India - 7.11% - 18-Sep-2025 - Face Value: 10,00,000 - Number: 2,600 - Value: 260.23 - Previous Value: 260.25 - National Highways Authority of India - 7.14% - 11-Jan-2026 - Face Value: 1,000 - Number: 8,06,381 - Value: 81.19 - Previous Value: 81.45 - National Highways Authority of India - 7.28% - 18-Sep-2030 - Face Value: 10,00,000 - Number: 2,500 - Value: 250.00 - Previous Value: 250.00 - National Highways Authority of India - 7.35% - 11-Jan-2031 - Face Value: 1,000 - Number: 17,49,943 - Value: 181.40 - Previous Value: 182.10 - National Highways Authority of India - 8.50% - 05-Feb-2029 - Face Value: 1,000 - Number: 5,00,000 - Value: 54.74 - Previous Value: 55.55 - National Highways Authority of India - 8.75% - 05-Feb-2029 - Face Value: 1,000 - Number: 2,50,000 - Value: 27.77 - Previous Value: 28.25 SECTION: Notes to the Standalone Financial Statements - Face Value - As at 31st March, 2024 - As at 31st March, 2023 - (Fully Paid unless stated otherwise) - Number (` in Crores) - Number (` in Crores) SECTION: 4. Non-current investments (Contd.) Brought forward: 13072.79, 9323.85 SECTION: Notes to the Standalone Financial Statements - Face Value - As at 31st March, 2024 - As at 31st March, 2023 - (Fully Paid unless stated otherwise) - Number (` in Crores) - Number (` in Crores) ``` ``` SECTION: Notes to the Standalone Financial Statements SECTION: 4.
Non-current investments (Contd.) Brought forward: - 15562.65 (As at 31st March, 2024) - 10427.51 (As at 31st March, 2023) SECTION: INVESTMENT IN BONDS IN THE NATURE OF DEBENTURES (Contd.) - Perpetual Bonds - Unsecured, Subordinated & Non-Convertible - State Bank of India - 7.72% - Series I (with first Call option on 03-Sep-2026) - Number: 1,00,00,000 - Value: 313,313.00 - 7.72% - Series II (with first Call option on 18-Oct-2026) - Number: 1,00,00,000 - Value: 400,400.00 - Zero Coupon Bonds - Secured, Redeemable & Non-Convertible - LIC Housing Finance Limited - Tranche 416 - 25-Apr-2025 - Number: 10,00,000 - Value: 1144.67 SECTION: INVESTMENT IN DEBT MUTUAL FUNDS SECTION: Quoted** - Fixed Maturity Plans (at amortised cost)* - Aditya Birla Sun Life Mutual Fund - Number: 10 - Value: 24.84 - DSP Mutual Fund - Number: 10 - Value: 55.04 - Nippon India Mutual Fund - Number: 10 - Value: 17.09 - SBI Mutual Fund - Number: 10 - Value: 269.91 SECTION: Unquoted - Target Maturity Index Funds (at fair value through other comprehensive income) - Aditya Birla Sun Life Mutual Fund - Number: 10 - Value: 945.75 - Axis Mutual Fund - Number: 10 - Value: 185.66 - DSP Mutual Fund - Number: 10 - Value: 53.08 - ICICI Prudential Mutual Fund - Number: 10 - Value: 615.29 - Kotak Mahindra Mutual Fund - Number: 10 - Value: 669.83 - Nippon India Mutual Fund - Number: 10 - Value: 269.43 - SBI Mutual Fund - Number: 10 - Value: 846.11 Carried over: - 22699.98 (As at 31st March, 2024) - 16244.30 (As at 31st March, 2023) SECTION: INVESTMENT IN ALTERNATIVE INVESTMENT FUNDS (at fair value through profit or loss) SECTION: Unquoted - Chiratae Ventures India Fund IV - Number: 1,00,000 - Value: 18.74 - Fireside Ventures Investments Fund I - Number: 1,00,000 - Value: 42.29 - Fireside Ventures Investments Fund II - Number: 1,000 - Value: 28.37 - Fireside Ventures Investments Fund III - Number: 1,00,000 - Value: 4.42 - India Foundation Fund Series I - Number: 100 - Value: 4.80 - Roots Ventures I - Number: 100 - Value: 23.34 Aggregate amount of quoted investments: 12824.99 (As at 31st March, 2024) Aggregate amount of unquoted investments: 9996.95 (As at 31st March, 2024) TOTAL: 22821.94 (As at 31st March, 2024) SECTION: Additional Tier 1 bonds These are perpetual in nature, issued by commercial banks under Reserve Bank of India guidelines. SECTION: Notes to the Standalone Financial Statements SECTION: As at 31st March, 2024 SECTION: As at 31st March, 2023 - Current (` in Crores), Non-Current (` in Crores), Current (` in Crores), Non-Current (` in Crores) - 5. Loans - Other Loans - Employees - Unsecured, considered good - 9.10 (Current) - 2.63 (Non-Current) - 5.95 (Current) - 4.07 (Non-Current) TOTAL: - 9.10 (Current) - 2.63 (Non-Current) - 5.95 (Current) - 4.07 (Non-Current) SECTION: Notes to the Standalone Financial Statements SECTION: As at 31st March, 2024 SECTION: As at 31st March, 2023 - 7. Other Assets - Current (` in Crores), Non-Current (` in Crores), Current (` in Crores), Non-Current (` in Crores) - Advances other than capital advances - Security Deposits - With Statutory Authorities - 0.71 (Current) - 790.91 (Non-Current) - Others - 0.97 (Current) - 162.10 (Non-Current) - Other Receivables* - 146.07 (Current) - 0.00 (Non-Current) TOTAL: - 1134.18 (Current) - 1229.22 (Non-Current) - 1388.09 (Current) - 1211.74 (Non-Current) SECTION: Notes to the Standalone Financial Statements SECTION: As at 31st March, 2024 SECTION: As at 31st March, 2023 - 8. Inventories* - (At lower of cost and net realisable value) - Raw materials (including packing materials) - 8494.87 (Current) - 6937.54 (Non-Current) - Work-in-progress - 322.10 (Current) - 263.47 (Non-Current) - Finished goods (manufactured) - 2115.45 (Current) - 2063.30 (Non-Current) - Stock-in-trade (goods purchased for resale) - 979.40 (Current) - 700.11 (Non-Current) - Stores and spares - 623.96 (Current) - 514.39 (Non-Current) - Intermediates - Tissue paper and Paperboards - 95.73 (Current) - 115.09 (Non-Current) TOTAL: - 12631.51 (Current) - 10593.90 (Non-Current) The above includes goods in transit as under: - Raw materials (including packing materials) - 159.15 (Current) - 229.89 (Non-Current) - Stock-in-trade (goods purchased for resale) - 2.89 (Current) - 2.37 (Non-Current) - Stores and spares - 2.05 (Current) - 4.37 (Non-Current) TOTAL: - 164.09 (Current) - 236.63 (Non-Current) The cost of inventories recognised as an expense includes ` 151.49 Crores (2023 - ` 156.27 Crores) in respect of write-offs / write-downs of inventory to net realisable value.
During the year, reversal of previous write-downs of ` 1.87 Crores (2023 - ` 0.81 Crore) have been made owing to subsequent increase in net realisable value. Inventories of ` 670.06 Crores (2023 - ` 337.08 Crores) are expected to be recovered after more than twelve months. * Cash credit facilities are secured by hypothecation of inventories of the Company, both present and future. The quarterly returns / statements filed by the Company with the bank(s) in respect of such facilities are in agreement with the books of accounts. SECTION: Notes to the Standalone Financial Statements SECTION: Current investments (at fair value through profit or loss, unless stated otherwise) (Contd.) - INVESTMENT IN BONDS IN THE NATURE OF DEBENTURES - Quoted - Tax Free Bonds - Secured, Redeemable & Non-Convertible - Indian Railway Finance Corporation Limited - 8.23% - Series 91 - 18-Feb-2024 - Number: 20,00,000 - Value: 201.79 - Power Finance Corporation Limited - 8.01% - Series 107 A - 30-Aug-2023 - Number: 10,00,000 - Value: 100.26 SECTION: INVESTMENT IN CERTIFICATES OF DEPOSIT (Contd.) - National Bank for Agriculture and Rural Development - 23-Jan-2024 - Number: 5,00,000 - Value: 69.95 - Small Industries Development Bank of India - 07-Jun-2023 - Number: 5,00,000 - Value: 98.38 - Small Industries Development Bank of India - 29-Aug-2023 - Number: 5,00,000 - Value: 48.23 - Small Industries Development Bank of India - 12-Sep-2023 - Number: 5,00,000 - Value: 48.08 SECTION: INVESTMENT IN DEBT MUTUAL FUNDS SECTION: Quoted - Exchange Traded Funds - Edelweiss Mutual Fund - Number: 1,000 - Value: 368.71 - Nippon India Mutual Fund - Number: 58,69,560 - Value: 70.52 SECTION: Unquoted SECTION: Liquid / Overnight Funds - LIC Mutual Fund - Number: 1,000 - Value: 100.18 - Nippon India Mutual Fund - Number: 100 - Value: 80.01 SECTION: Ultra Short Term Funds - Aditya Birla Sun Life Mutual Fund - Number: 100 - Value: 940.65 - Kotak Mahindra Mutual Fund - Number: 10 - Value: 963.52 - SBI Mutual Fund - Number: 1,000 - Value: 136.90 ``` ``` SECTION: Mutual Fund Investments Overview Axis Mutual Fund, 1,000, 14, 17,525, 416.27, 14, 17,525, 387.03 Bandhan Mutual Fund, 10, 7, 34, 11,386, 263.71, 7, 34, 11,386, 245.79 DSP Mutual Fund, 10, 17, 22, 63,805, 311.47, 17, 22, 63,805, 290.89 ICICI Prudential Mutual Fund, 100, 1, 40, 07, 103,699.32, 1, 40, 07, 103,647.96 SBI Mutual Fund, 1,000, 19, 73,814, 650.49, 19, 73,814, 604.99 SECTION: Carried Over Data 7083.28, 7083.28, 9957.07, 9957.07 SECTION: Notes to the Standalone Financial Statements Face Value, As at 31st March, 2024, As at 31st March, 2023 (Fully Paid unless stated otherwise), (` in Crores), (` in Crores) **SECTION: 9.
Current Investments (at fair value through profit or loss, unless stated otherwise) (Contd.) Brought forward 7083.28, 9957.07 SECTION: Investment in Debt Mutual Funds (Contd.) SECTION: Money Market Funds Aditya Birla Sun Life Mutual Fund, 100, 40, 95,539, 139.49, 40, 95,539, 129.50 Axis Mutual Fund, 1,000, 20, 57,053, 269.73, 20, 57,053, 250.47 Bandhan Mutual Fund, 10, 4, 22,87,680, 167.70, 4, 22,87,680, 155.87 HDFC Mutual Fund, 1,000, 7, 47,666, 396.04, 7, 47,666, 367.98 Kotak Mahindra Mutual Fund, 1,000, 6, 53,754, 269.36, 6, 53,754, 250.28 Nippon India Mutual Fund, 1,000, 6, 60,345, 252.20, 6, 60,345, 234.26 SBI Mutual Fund, 10, 6, 33,58,708, 256.09, 6, 33,58,708, 238.05 SECTION: Floating Rate Funds Aditya Birla Sun Life Mutual Fund, 100, 1, 94,01,569, 627.15, 1, 94,01,569, 581.25 HDFC Mutual Fund, 10, 10, 07,90,662, 461.93, 10, 07,90,662, 427.05 Nippon India Mutual Fund, 10, 6, 22,64,756, 265.83, 6, 22,64,756, 246.04 SECTION: Short Duration Funds DSP Mutual Fund, 10, 2, 31,36,440, 105.31 Kotak Mahindra Mutual Fund, 10, 1, 02,55,708, 52.81 Nippon India Mutual Fund, 10, 1, 02,78,225, 52.81 SBI Mutual Fund, 10, 5, 40,50,081, 165.74, 5, 40,50,081, 154.07 SECTION: Banking & PSU Debt Funds Axis Mutual Fund, 1,000, 31,86,227, 770.87, 31,86,227, 720.37 Bandhan Mutual Fund, 10, 14, 17,61,931, 316.53, 14, 17,61,931, 296.13 SECTION: Corporate Bond Funds ICICI Prudential Mutual Fund, 10, 4, 30,40,789, 121.08, 2,42,40,779, 63.09 Kotak Mahindra Mutual Fund, 1,000, 2,98,810, 105.58 SECTION: Investment in Bonds in the Nature of Debentures (at amortised cost) SECTION: Quoted SECTION: Taxable Bonds - Unsecured, Redeemable & Non-Convertible National Bank for Agriculture and Rural Development 6.40% - Series 20K - 31-Jul-2023, 10,00,000, 2,700, 268.84 Carried over 11879.53, 14340.32 SECTION: Current Portion of Non-current Investments SECTION: Investment in Preference Shares SECTION: In Subsidiaries (at amortised cost) Unquoted Wimco Limited (Cumulative Non-Convertible Redeemable Preference Shares) 100, 5,00,000, 5.00 SECTION: Investment in Government or Trust Securities (at amortised cost) SECTION: Quoted Government of India Zero Coupon Government Stock, Zero Coupon Government Stock - 22-Feb-2025, 100, 34,00,000, 32.35 SECTION: Investment in Bonds in the Nature of Debentures (at amortised cost) SECTION: Quoted Tax Free Bonds - Secured, Redeemable & Non-Convertible India Infrastructure Finance Company Limited, 8.01% - Series 1A - 12-Nov-2023, 1,000, –, –, 50,000, 5.05 Indian Railway Finance Corporation Limited, 8.23% - Series 91 - 18-Feb-2024, 1,000, –, –, 8,00,000, 81.36 8.35% - Series 89 - 21-Nov-2023, 10,00,000, –, –, 100, 10.13 Taxable Bonds - Unsecured, Redeemable & Non-Convertible Export Import Bank of India, 5.20% - Series X 01 - 04-Mar-2025 (with Put and Call option on 04-Mar-2024), 10,00,000, –, –, 2,000, 200.00 Power Finance Corporation Limited, 5.47% - Series 206 - 19-Aug-2023, 10,00,000, –, –, 100, 10.01 6.72% - Series 203 A - 09-Jun-2023, 10,00,000, –, –, 900, 90.25 6.75% - Series 202 A - 22-May-2023, 10,00,000, –, –, 1,200, 120.25 Carried over 11916.88, 14857.37 SECTION: Notes to the Standalone Financial Statements As at 31st March, 2024, As at 31st March, 2023 Trade receivables (Current) Considered good – Secured, 51.44, 55.96 Considered good – Unsecured, 3260.01, 2265.37 Which have significant increase in Credit Risk, –, – Credit impaired, 161.19, 167.87 Less: Allowance for credit impairment, 161.19, 167.87 TOTAL, 3311.45, 2321.33 SECTION: Trade Receivables Ageing Schedule Outstanding for following periods from due date of payment Not Due, Less than 6 months, 6 months-1 year, 1-2 years, 2-3 years, More than 3 years, Total Undisputed Trade Receivables – considered good, 1405.64, 1862.76, 37.83, 5.22, –, –, 3311.45 Undisputed Trade Receivables – which have significant increase in credit risk, –, –, –, –, –, –, – Undisputed Trade Receivables – credit impaired, –, 0.13, 5.24, 1.29, 1.28, 35.86, 43.80 Disputed Trade Receivables – considered good, –, –, –, –, –, –, – Disputed Trade Receivables – which have significant increase in credit risk, –, –, –, –, –, –, – Disputed Trade Receivables – credit impaired, –, 1.03, 3.27, 2.98, 0.65, 109.46, 117.39 SUB-TOTAL, 1405.64, 1863.92, 46.34, 9.49, 1.93, 145.32, 3472.64 Less: Allowance for credit impairment, 161.19 TOTAL, 3311.45 SECTION: Outstanding for following periods from due date of payment as at 31st March, 2023** Not Due, Less than 6 months, 6 months-1 year, 1-2 years, 2-3 years, More than 3 years, Total Undisputed Trade Receivables – considered good, 1566.84, 731.95, 17.39, 0.63, 4.52, 2321.33 Undisputed Trade Receivables – which have significant increase in credit risk, –, –, –, –, –, –, – Undisputed Trade Receivables – credit impaired, –, 0.02, 7.85, 6.74, 22.00, 57.56 Disputed Trade Receivables – considered good, –, –, –, –, –, –, – Disputed Trade Receivables – which have significant increase in credit risk, –,
–, –, –, –, –, – Disputed Trade Receivables – credit impaired, –, –, 0.21, 0.55, 1.75, 110.31 SUB-TOTAL, 1566.84, 731.97, 25.45, 7.92, 28.27, 2489.20 Less: Allowance for credit impairment, 167.87 TOTAL, 2321.33 SECTION: Notes to the Standalone Financial Statements As at 31st March, 2024 (` in Crores), As at 31st March, 2023 (` in Crores) 11. Cash and Cash Equivalents Balances with Banks Current accounts, 192.48, 203.19 Cheques, drafts on hand, 1.85, 1.37 Cash on hand, 3.30, 2.32 TOTAL, 197.63, 206.88 @ Cash and cash equivalents include cash on hand, cheques, drafts on hand, cash at bank and deposits with banks with original maturity of 3 months or less. The Company does not have any cash and cash equivalents that are not available for use. 12. Other Bank Balances Earmarked balances, 268.81, 239.30 In deposit accounts, 5751.25, 3385.08 TOTAL, 6020.06, 3624.38 Includes balances towards unpaid dividend, unspent corporate social responsibility. Represents deposits with original maturity of more than 3 months having remaining maturity of less than 12 months from the Balance Sheet date. SECTION: Notes to the Standalone Financial Statements As at 31st March, 2024 (No. of Shares), As at 31st March, 2024 (` in Crores), As at 31st March, 2023 (No. of Shares), As at 31st March, 2023 (` in Crores) 13. Equity Share Capital Authorised, Ordinary Shares of ` 1.00 each, 20,00,00,00,000, 2000.00, 20,00,00,00,000, 2000.00 Issued and Subscribed, Ordinary Shares of ` 1.00 each, fully paid, 12,48,47,21,471, 1248.47, 12,42,80,17,741, 1242.80 SECTION: A) Reconciliation of Number of Ordinary Shares Outstanding As at beginning of the year, 12,42,80,17,741, 1242.80, 12,32,32,55,931, 1232.33 Add: Issue of Shares on exercise of Options, 5,67,03,730, 5.67, 10,47,61,810, 10.48 As at end of the year, 12,48,47,21,471, 1248.47, 12,42,80,17,741, 1242.80 SECTION: B) Shareholders Holding More than 5% of the Ordinary Shares in the Company As at 31st March, 2024 (No. of Shares), (%), As at 31st March, 2023 (No. of Shares), (%) Tobacco Manufacturers (India) Limited, 2,54,14,95,863, 20.36, 2,97,83,47,320, 23.96 Life Insurance Corporation of India, 1,89,68,61,285, 15.19, 1,89,68,61,285, 15.26 Specified Undertaking of the Unit Trust of India, 97,45,31,427, 7.81, 97,45,31,427, 7.84 SECTION: C) Shareholding of Promoters: Nil SECTION: D) Ordinary Shares Allotted as Fully Paid Pursuant to Contract(s) Without Payment Being Received in Cash or as Fully Paid Up Bonus Shares During the Period of Five Years Immediately Preceding 31st March: Nil SECTION: E) Rights, Preferences and Restrictions Attached to the Ordinary Shares The Ordinary Shares of the Company, having par value of ` 1.00 per share, rank pari passu in all respects including voting rights and entitlement to dividend. SECTION: F) Shares Reserved for Issue Under Options As at 31st March, 2024 (No. of Shares), As at 31st March, 2023 (No. of Shares) Ordinary Shares of ` 1.00 each, 8,99,46,120, 13,20,94,790 SECTION: Terms and Conditions of Options Granted Each Option entitles the holder thereof to apply for and be allotted ten Ordinary Shares of the Company of ` 1.00 each upon payment of the exercise price during the exercise period. The exercise period commences from the date of vesting of the Options and expires at the end of five years from the date of vesting in respect of Options. The vesting period for conversion of Options is as follows: - On completion of 12 months from the date of grant of the Options: 30% vests - On completion of 24 months from the date of grant of the Options: 30% vests - On completion of 36 months from the date of grant of the Options: 40% vests The Options have been granted at the 'market price' as defined under the Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021. Further details of ITC Employee Stock Option Schemes are provided in Note 28(xii). SECTION: Notes to the Standalone Financial Statements ``` ``` SECTION: As at 31st March, 2024 and 31st March, 2023** Current (` in Crores), Non-Current (` in Crores), Current (` in Crores), Non-Current (` in Crores) 14. Borrowings: - Current: 1.52 - Non-Current: 1.76 - Previous Current: 1.26 - Previous Non-Current: 3.28 TOTAL: - Current: 1.52 - Non-Current: 1.76 - Previous Current: 1.26 - Previous Non-Current: 3.28 *Interest free deferral period of 14 years and repayable by 2025-26.
SECTION: The repayment schedule is summarised as under: As at 31st March, 2024 (` in Crores), As at 31st March, 2023 (` in Crores) - In the first year: 1.52, 1.26 - In the second year: 1.76, 1.52 - In the third to fifth year: –, 1.76 TOTAL: - 3.28, 4.54 SECTION: As at 31st March, 2024 and 31st March, 2023 Current (` in Crores), Non-Current (` in Crores), Current (` in Crores), Non-Current (` in Crores) 15. Lease Liabilities: - Current: 46.74 - Non-Current: 261.95 - Previous Current: 46.54 - Previous Non-Current: 273.59 TOTAL: - Current: 46.74 - Non-Current: 261.95 - Previous Current: 46.54 - Previous Non-Current: 273.59 * Refer Note 28(vii) SECTION: Movement of Lease Liabilities during the year Particulars, 31st March, 2024, 31st March, 2023 - Opening Lease Liabilities: 320.13, 305.88 - New Leases recognised: 69.45, 70.96 - Remeasurements and withdrawals: (24.25), (4.74) - Interest expense on Lease Liabilities: 25.84, 25.54 - Payment of Lease Liabilities (including interest): (82.48), (77.51) - Closing Lease Liabilities: 308.69, 320.13 SECTION: Notes to the Standalone Financial Statements SECTION: As at 31st March, 2024 and 31st March, 2023 As at 31st March, 2024 (` in Crores), As at 31st March, 2023 (` in Crores) 16. Other financial liabilities: - Non-current: - Others (Includes payable towards employee benefits, retention money payable towards property, plant and equipment etc.): 109.87, 152.49 TOTAL: - 109.87, 152.49 - Current: - Interest accrued: 2.01, 1.69 - Unpaid dividend: 251.19, 239.07 - Unpaid matured deposits and interest accrued thereon: …, … - Unpaid matured debentures / bonds and interest accrued thereon: 0.30, 0.30 - Others (Includes payable towards employee benefits, property, plant and equipment, derivatives designated as hedging instruments, contingent consideration on business combination etc.): 1405.83, 1489.62 TOTAL: - 1659.33, 1730.68 Represents dividend amounts either not claimed or kept in abeyance in accordance with Section 126 of the Companies Act, 2013 or such amounts in respect of which Prohibitory / Attachment Orders are on record with the Company. SECTION: As at 31st March, 2024 and 31st March, 2023 Current, Non-Current, Current, Non-Current 17. Provisions: - Provision for employee benefits [Refer Note 28(vi)] - Retirement benefits: 60.70, 148.79 - Other benefits: 8.02, 72.66 TOTAL: - 68.72, 221.45 SECTION: Notes to the Standalone Financial Statements SECTION: As at 31st March, 2024 SECTION: As at 31st March, 2023 (` in Crores), (` in Crores) 18. Deferred tax liabilities (Net): - Deferred tax liabilities: 2618.85, 2146.97 - Less: Deferred tax assets: 535.19, 525.84 TOTAL: - 2083.66, 1621.13 Refer Note 28(xi) Movement in deferred tax liabilities / assets balances: Opening Balance, Recognised in profit or loss, Recognised in OCI, Reclassified to Equity, Reclassified to profit or loss, Closing Balance 2023-24: - On fiscal allowances on property, plant and equipment, investment property etc.: 1721.61, 122.13, –, –, –, 1843.74 - On Excise Duty / National Calamity Contingent Duty on closing stock: 117.93, (17.32), –, –, –, 100.61 - On cash flow hedges: 0.84, –, (2.49), (2.74), 4.82, 0.43 - Other timing differences: 306.59, 125.83, 241.65, –, –, 674.07 Total deferred tax liabilities: - 2146.97, 230.64, 239.16, (2.74), 4.82, 2618.85 - On employees’ separation and retirement etc.: 132.63, (22.40), 11.30, –, –, 121.53 - On provision for doubtful debts / advances: 52.48, 4.62, –, –, –, 57.10 - On State and Central taxes etc.: 70.07, 3.18, –, –, –, 73.25 - Other timing differences: 270.66, 12.65, –, –, –, 283.31 Total deferred tax assets: - 525.84, (1.95), 11.30, –, –, 535.19 Deferred tax liabilities (Net): - 1621.13, 232.59, 227.86, (2.74), 4.82, 2083.66 2022-23: - On fiscal allowances on property, plant and equipment, investment property etc.: 1642.06, 79.55, –, –, –, 1721.61 - On Excise Duty / National Calamity Contingent Duty on closing stock: 79.21, 38.72, –, –, –, 117.93 - On cash flow hedges: 4.82, –, (34.32), 2.62, 27.72, 0.84 - Other timing differences: 348.22, (32.82), (8.81), –, –, 306.59 Total deferred tax liabilities: - 2074.31, 85.45, (43.13), 2.62, 27.72, 2146.97 - On employees’ separation and retirement etc.: 62.59, 65.04, 5.00, –, –, 132.63 - On provision for doubtful debts / advances: 53.11, (0.63), –, –, –, 52.48 - On State and Central taxes etc.: 69.62, 0.45, –, –, –, 70.07 - Other timing differences: 221.85, 48.81, –, –, –, 270.66 Total deferred tax assets: - 407.17, 113.67, 5.00, –, –, 525.84 Deferred tax liabilities (Net): - 1667.14, (28.22), (48.13), 2.62, 27.72, 1621.13 **SECTION: 19.
Other liabilities (Current) (` in Crores), (` in Crores) - Statutory Liabilities: 4398.88, 4039.86 - Advances received from customers: 828.69, 1275.96 - Others (includes deferred revenue, accruals etc.): 162.18, 130.34 TOTAL: - 5389.75, 5446.16 SECTION: Notes to the Standalone Financial Statements SECTION: As at 31st March, 2024 and 31st March, 2023 31st March, 2024 (` in Crores), 31st March, 2023 (` in Crores) 20. Current Tax Liabilities (Net): - Current taxation (net of advance payment): 760.00, 776.13 TOTAL: - 760.00, 776.13 SECTION: For the year ended 31st March, 2024 and 31st March, 2023** 31st March, 2024 (` in Crores), 31st March, 2023 (` in Crores) 21A. Revenue from operations: - Sale of Products: 66466.10, 66903.80 - Sale of Services: 2980.10, 2577.09 Gross Revenue from sale of products and services* [including Excise Duty / National Calamity Contingent Duty of ` 4733.29 Crores (2023 - ` 4054.16 Crores)]: - 69446.20, 69480.89 Other Operating Revenues#: - 659.09, 770.39 TOTAL: - 70105.29, 70251.28 * Net of sales returns, damaged stocks and estimates of variable consideration such as discounts to customers. SECTION: Includes Government grants of ` 237.47 Crores (2023 - ` 300.58 Crores) on account of Fiscal and Export Incentives etc. SECTION: 21B. Gross Revenue from sale of products and services* 31st March, 2024 (` in Crores), 31st March, 2023 (` in Crores) FMCG: - – Cigarettes etc.: 30596.59, 28206.83 - – Branded Packaged Food Products: 17194.50, 15762.46 - – Others (Education and Stationery Products, Personal Care Products, Safety Matches, Agarbattis etc.): 3727.97, 3319.02 Hotels: - – Income from Sale of Services: 2973.74, 2573.22 Agri Business: - – Unmanufactured Tobacco: 2612.06, 2677.69 - – Other Agri Products and Commodities (Wheat, Rice, Spices, Coffee, Soya etc.): 5805.38, 9637.17 Paperboards, Paper and Packaging: - – Paperboards and Paper: 5871.71, 6570.82 - – Packaging and Printed Materials: 664.25, 733.68 TOTAL: - 69446.20, 69480.89 * Net of sales returns, damaged stocks and estimates of variable consideration such as discounts to customers. SECTION: Notes to the Standalone Financial Statements SECTION: For the year ended 31st March, 2024 (` in Crores) SECTION: For the year ended 31st March, 2023 (` in Crores) 22. Other income: - Interest income: 1592.41, 1434.53 - Dividend income: 990.35, 556.90 - Other non-operating income: 955.52, 446.18 TOTAL: - 3538.28, 2437.61 SECTION: Interest income: a) Deposits with banks etc. - carried at amortised cost: 537.66, 382.73 b) Financial assets: - – mandatorily measured at FVTPL: 211.95, 206.61 - – measured at amortised cost: 555.02, 719.79 - – measured at FVTOCI: 287.72, 121.02 c) Others (from statutory authorities etc.): 0.06, 4.38 TOTAL: - 1592.41, 1434.53 SECTION: Dividend income: a) Equity instruments measured at FVTOCI held at the end of reporting period: 9.43, 0.01 b) Other investments: 980.92, 556.89 TOTAL: - 990.35, 556.90 SECTION: Other non-operating income: - Net foreign exchange gain / (loss): (3.96), 13.74 - Net gain / (loss) arising on financial instruments measured at amortised cost / mandatorily measured at FVTPL (Refer Note 31): 781.06, 283.17 - Gain recognised on divestment of shares held in joint venture [Refer Note 28(x)]: 9.49, – - Impairment of investment in joint venture: –, (8.50) - Others (including income from leases etc.): 168.93, 157.77 TOTAL: - 955.52, 446.18 Includes ` 149.37 Crores (2023 - ` 92.24 Crores) being net gain / (loss) on sale of investments. SECTION: Notes to the Standalone Financial Statements SECTION: For the year ended 31st March, 2024 (` in Crores) SECTION: For the year ended 31st March, 2023 (` in Crores) 23. Changes in inventories of finished goods, Stock-in-Trade, work-in-progress and intermediates: 31st March, 2024, 31st March, 2023 Opening inventories: - Finished goods (manufactured): 2063.30, 1638.93 - Work-in-progress: 263.47, 232.70 - Stock-in-Trade (goods purchased for resale): 700.11, 1150.95 - Intermediates - Tissue paper and Paperboards: 115.09, 79.89 Less: Closing inventories: - Finished goods (manufactured): 2115.45, 2063.30 - Work-in-progress: 322.10, 263.47 - Stock-in-Trade (goods purchased for resale): 979.40, 700.11 - Intermediates - Tissue paper and Paperboards: 95.73, 115.09 TOTAL: - (370.71), (39.50) SECTION: 24. Employee benefits expense 31st March, 2024, 31st March, 2023 - Salaries and wages: 3181.37, 2905.05 - Contribution to Provident and other funds: 178.95, 171.87 - Share based payments to employees [Includes cash-settled share based payments ` 32.06 Crores (2023 - ` 208.62 Crores)]: 135.16, 267.12 - Staff welfare expenses: 305.31, 280.91 TOTAL: - 3800.79, 3624.95 Less: Recoveries made / reimbursements received: 68.56, 55.49 TOTAL: - 3732.23, 3569.46 Refer Note 28(xii) and 28(xiii) **SECTION: 25.
Finance costs 31st March, 2024, 31st March, 2023 Interest expense: - On Lease liabilities: 25.84, 25.45 - On financial liabilities measured at amortised cost: 8.40, 4.00 - Others (to statutory authorities etc.): 11.49, 12.36 TOTAL: - 45.73, 41.81 SECTION: Notes to the Standalone Financial Statements SECTION: For the year ended 31st March, 2024 (` in Crores) SECTION: For the year ended 31st March, 2023 (` in Crores) 26. Other Expenses: 31st March, 2024, 31st March, 2023 - Power and fuel: 1083.65, 1199.84 - Consumption of stores and spare parts: 442.94, 446.03 - Contract processing charges: 1046.72, 941.72 - Rent: 277.10, 239.68 - Rates and taxes: 243.20, 153.02 - Insurance: 129.41, 132.43 - Repairs: - Buildings: 116.59, 104.80 - Machinery: 339.45, 325.43 - Others: 93.28, 81.43 - Maintenance and upkeep: 349.74, 312.93 - Outward freight and handling charges: 1582.34, 1648.69 - Warehousing charges: 244.35, 233.72 - Advertising / Sales promotion: 1420.31, 1155.71 - Market research: 193.97, 153.38 - Design and product development: 45.09, 48.08 - Hotel reservation / Marketing expenses: 68.03, 56.76 - Retail accessories: 224.19, 224.54 - Brokerage and discount - sales: 14.78, 17.82 - Commission to selling agents: 19.85, 18.92 - Doubtful and bad debts: 9.23, (0.93) - Doubtful and bad advances, loans and deposits: 25.03, 1.16 - Bank and credit card charges: 30.21, 31.77 - Information technology services: 366.82, 311.31 - Travelling and conveyance: 310.16, 266.31 - Training and development: 24.44, 18.55 - Legal expenses: 34.55, 37.07 - Consultancy / Professional fees: 207.66, 175.52 - Postage, telephone etc.: 18.25, 19.48 - Printing and stationery: 17.97, 16.66 - (Gain) / Loss on sale of property, plant and equipment - Net: (52.94), 4.88 - Loss on sale of stores and spare parts - Net: 2.09, 1.45 - Miscellaneous expenses: 1319.41, 1271.00 TOTAL: - 10247.87, 9649.16 Miscellaneous expenses include: ``` ``` SECTION: Auditors’ Remuneration and Expenses Auditors’ remuneration excludes remuneration for services amounting to ₹ 1.90 Crores (2023 - ₹ 2.44 Crores) rendered by network firm/entity which is a part of the network of which auditor is a member firm. In addition to the above, ₹ 0.25 Crore (2023 - Nil) has been paid to the Statutory Auditors in respect of certification fees relating to the proposed demerger which are disclosed under exceptional items [Refer Note 28(i)]. Auditors’ Fees Breakdown:** - Audit fees: 3.85, 3.40 - Tax audit fees: 0.85, 0.70 - Fees for limited review: 1.62, 1.40 - Fees for other services: 1, 0.43, 0.44 - Reimbursement of expenses: 0.19, 0.22 Excluding taxes. --- SECTION: Notes to the Standalone Financial Statements SECTION: For the year ended 31st March, 2024 Income Tax Expenses: - A. Amount recognised in profit or loss: - Current tax: - Income tax for the year: 6138.25, 6019.69 - Adjustments / (credits) related to previous years - Net: (477.04), 5.63 - Total current tax: 5661.21, 6025.32 - Deferred tax: - Deferred tax for the year: 223.99, (22.59) - Adjustments / (credits) related to previous years - Net: 8.60, (5.63) - Total deferred tax: 232.59, (28.22) - TOTAL: 5893.80, 5997.10 - B. Amount recognised in other comprehensive income: - The tax (charge) / credit arising on income and expenses recognised in other comprehensive income is as follows: - On items that will not be reclassified to profit or loss: - Remeasurements gains / (losses) on defined benefit plans: 5.79, 5.00 - Equity instruments through other comprehensive income: (237.14), – - Related to designated portion of hedging instruments in cash flow hedges: 2.63, (5.34) - TOTAL: (228.72), (0.34) - On items that will be reclassified to profit or loss: - Related to designated portion of hedging instruments in cash flow hedges: (4.96), 11.94 - Debt instruments through other comprehensive income: (4.51), 8.81 - TOTAL: (238.19), 20.41 - C. Amount recognised directly in equity: - The income tax (charged) / credited directly to equity during the year is as follows: - Deferred tax: - Arising on gains / (losses) of hedging instruments in cash flow hedges transferred to the initial carrying amounts of hedged items: (2.74), 2.62 - TOTAL: (2.74), 2.62 - D.
Reconciliation of effective tax rate: - The income tax expense for the year can be reconciled to the accounting profit as follows: - Profit before tax: 26315.77, 24750.41 - Income tax expense calculated @ 25.168% (2023 - 25.168%): 6623.15, 6229.18 - Effect of tax relating to uncertain tax positions: 34.90, 25.29 - Effect of different tax rate on certain items: (115.87), (162.27) - Effect of Income not taxable: (64.91), (76.60) - Other differences: (115.03), (18.50) - Total: 6362.24, 5997.10 - Adjustments recognised in the current year in relation to the current tax of prior years: (468.44), – - Income tax recognised in profit or loss: 5893.80, 5997.10 The tax rate of 25.168% (22% + surcharge @10% and cess @4%) used for the year 2023-24 and 2022-23 is the corporate tax rate applicable on taxable profits under the Income-tax Act, 1961. The Company has reassessed its provisions relating to uncertain tax positions for earlier years based on a favourable order of the Honʼble Supreme Court received during the year. This has resulted in a credit of ₹ 468.44 Crores in the Current Tax expense for the year ended 31st March, 2024.* --- SECTION: 28. Additional Notes to the Financial Statements SECTION: (i) The Board of Directors of the Company at its meeting held on August 14, 2023 has, subject to necessary approvals, approved a Scheme of Arrangement amongst ITC Limited (‘Demerged Company’) and ITC Hotels Limited (‘Resulting Company’) and their respective shareholders and creditors under Section 230 to 232 read with the other applicable provisions of the Companies Act, 2013 (‘Scheme’). The Scheme provides for demerger of the Demerged Undertaking comprising the Hotels Business of the Demerged Company into the Resulting Company on a going concern basis and the consequent issuance of Equity Shares by the Resulting Company to all the shareholders of the Demerged Company as per the Share Entitlement Ratio. SECTION: (ii) Earnings per Share: - (a) Profit for the year (₹ in Crores): 20421.97, 18753.31 - (b) Weighted average number of Ordinary shares outstanding for the purpose of basic earnings per share: 12,46,10,58,425, 12,38,15,12,709 - (c) Effect of potential Ordinary shares on Employee Stock Options outstanding: 2,80,92,231, 3,28,14,400 - (d) Weighted average number of Ordinary shares in computing diluted earnings per share [(b) + (c)]: 12,48,91,50,656, 12,41,43,27,109 - (e) Earnings per share on profit for the year (Face Value ₹ 1.00 per share): - – Basic [(a) / (b)]: 16.39, 15.15 - – Diluted [(a) / (d)]: 16.35, 15.11 SECTION: (iii) Amount required to be spent by the Company during the year as per Section 135 read with Section 198 of the Companies Act, 2013 - ₹ 403.47 Crores (2023 - ₹ 364.91 Crores) being 2% of the average Net Profit of the Company. Expenditure incurred during the year is ₹ 404.05 Crores (2023 - ₹ 365.50 Crores) comprising employee benefits expense of ₹ 15.52 Crores (2023 - ₹ 14.33 Crores) and other expenses of ₹ 388.53 Crores (2023 - ₹ 351.17 Crores), of which ₹ 30.60 Crores (2023 - ₹ 62.71 Crores) is accrued for payment as on 31st March, 2024. Such CSR expenditure does not include any spends on construction/acquisition of assets. Amount available for set off in succeeding financial years is ₹ 1.93 Crores (2023 - ₹ 1.35 Crores). SECTION: (iv) Research and Development expenses for the year amount to ₹ 170.37 Crores (2023 - ₹ 161.31 Crores). SECTION: (v) Contingent Liabilities and Commitments: SECTION: (a) Contingent Liabilities Claims against the Company not acknowledged as debts ₹ 963.29 Crores (2023 - ₹ 875.28 Crores), including interest on claims, where applicable, estimated to be ₹ 314.23 Crores (2023 - ₹ 283.62 Crores). These comprise: - Excise duty, VAT/sales taxes, GST and other indirect taxes claims disputed by the Company relating to issues of applicability and classification aggregating ₹ 645.81 Crores (2023 - ₹ 585.19 Crores), including interest on claims, where applicable, estimated to be ₹ 288.56 Crores (2023 - ₹ 261.96 Crores). - Local Authority taxes/cess/royalty on property, utilities etc. claims disputed by the Company relating to issues of applicability and determination aggregating ₹ 264.79 Crores (2023 - ₹ 239.94 Crores), including interest on claims, where applicable, estimated to be ₹ 18.72 Crores (2023 - ₹ 15.09 Crores). - Third party claims arising from disputes relating to contracts aggregating ₹ 41.27 Crores (2023 - ₹ 31.79 Crores), including interest on claims, where applicable, estimated to be ₹ 0.29 Crore (2023 - ₹ 0.17 Crore).
- Other matters ₹ 11.42 Crores (2023 - ₹ 18.36 Crores), including interest on other matters, where applicable, estimated to be ₹ 6.66 Crores (2023 - ₹ 6.40 Crores). SECTION: (b) Commitments Estimated amount of contracts remaining to be executed on capital accounts and not provided for ₹ 896.78 Crores (2023 - ₹ 1403.04 Crores). Uncalled liability on partly paid-up shares and other investments is ₹ 50.86 Crores (2023 - ₹ 60.71 Crores). SECTION: (vi) Employee Benefit Plans SECTION: Description of Plans The Company makes contributions to both Defined Benefit and Defined Contribution Plans for qualifying employees. These Plans are administered through approved Trusts, which operate in accordance with the Trust Deeds, Rules and applicable Statutes. The concerned Trusts are managed by Trustees who provide strategic guidance with regard to the management of their investments and liabilities and also periodically review their performance. Provident Fund, Pension and Gratuity Benefits are funded and Leave Encashment Benefits are unfunded in nature. The Defined Benefit Pension Plans are based on employees’ pensionable remuneration and length of service. Under the Provident Fund, Gratuity and Leave Encashment Schemes, employees are entitled to receive lump sum benefits. SECTION: (a) Defined Benefit Plans: The liabilities arising in the Defined Benefit Schemes are determined in accordance with the advice of independent, professionally qualified actuaries, using the projected unit credit method. The Company makes regular contributions to these Defined Benefit Plans. Additional contributions are made to these plans as and when required based on actuarial valuation. Some Group companies also participate in these Plans. These participating Group companies make contributions to the Plans for their respective employees on a uniform basis and each entity ascertains their obligation through actuarial valuation. The net Defined benefit cost is recognised by these companies in their respective Financial Statements. SECTION: Risk Management The Defined Benefit Plans expose the Company to risk of actuarial deficit arising out of investment risk, interest rate risk and salary cost inflation risk. - Investment Risk: This may arise from volatility in asset values due to market fluctuations and impairment of assets due to credit losses. These Plans primarily invest in debt instruments such as Government securities and highly rated corporate bonds – the valuation of which is inversely proportional to the interest rate movements. - Interest Rate Risk: The present value of Defined Benefit Plan liability is determined using the discount rate based on the market yields prevailing at the end of reporting period on Government securities. A decrease in yields will increase the fund liabilities and vice-versa. - Salary Cost Inflation Risk: The present value of the Defined Benefit Plan liability is calculated with reference to the future salaries of participants under the Plan. Increase in salary might lead to higher liabilities. These Plans have a relatively balanced mix of investments in order to manage the above risks. The investment strategy is designed based on the interest rate scenario, liquidity needs of the Plans and pattern of investment as prescribed under various statutes. The Trustees regularly monitor the funding and investments of these Plans. Risk mitigation systems are in place to ensure that the health of the portfolio is regularly reviewed and investments do not pose any significant risk of impairment. Periodic audits are conducted to ensure adequacy of internal controls. Pension obligation of the employees is secured by purchasing annuities thereby de-risking the Plans from future payment obligation. ``` ``` SECTION: Pension and Other Benefits For the year ended 31st March, 2024, the following data is presented regarding the Defined Benefit Obligation (DBO): Change in Defined Benefit Obligation (DBO) \| Item \| Pension \| Gratuity \| Leave Encashment \| Pension (2023) \| Gratuity (2023) \| Leave Encashment (2023) \| \|---\|---\|---\|---\|---\|---\|---\| \| 1. Present Value of DBO at the beginning of the year \| 878.89 \| 439.40 \| 154.53 \| 897.75 \| 416.05 \| 144.48 \| \| 2. Current Service Cost \| 37.63 \| 33.48 \| 12.87 \| 41.32 \| 32.14 \| 12.23 \| \| 3. Past Service Cost \| – \| – \| – \| – \| – \| – \| \| 4. Interest Cost \| 62.89 \| 31.13 \| 11.06 \| 57.04 \| 26.45 \| 9.18 \| \| 5. Remeasurement gains / (losses) \| – \| – \| – \| – \| – \| – \| \| a. Effect of changes in demographic assumptions \| 1.65 \| 0.74 \| 0.42 \| – \| – \| – \| \| b.
Effect of changes in financial assumptions \| 25.08 \| 17.30 \| 6.00 \| (10.44) \| (13.10) \| (2.80) \| \| c. Changes in asset ceiling (excluding interest income) \| – \| – \| – \| – \| – \| – \| \| d. Effect of experience adjustments \| (26.79) \| 23.27 \| 0.60 \| (1.31) \| 26.27 \| 8.33 \| \| 6. Curtailment Cost / (Credits) \| – \| – \| – \| – \| – \| – \| \| 7. Settlement Cost / (Credits) \| – \| – \| – \| – \| – \| – \| \| 8. Liabilities assumed in business combination \| – \| – \| – \| – \| – \| – \| \| 9. Effects of transfer In / (Out) \| (0.07) \| – \| – \| (0.06) \| – \| – \| \| 10. Benefits Paid \| (80.63) \| (48.55) \| (14.00) \| (105.41) \| (48.41) \| (16.89) \| \| 11. Present Value of DBO at the end of the year \| 898.65 \| 496.77 \| 171.48 \| 878.89 \| 439.40 \| 154.53 \| Best Estimate of Employers’ Expected Contribution for the next year \| Item \| Pension \| Gratuity \| \|---\|---\|---\| \| – Pension \| 41.28 \| 86.28 \| \| – Gratuity \| 96.95 \| 67.09 \| SECTION: Notes to the Standalone Financial Statements SECTION: 28. Additional Notes to the Financial Statements (Contd.) For the year ended 31st March, 2024 (` in Crores): \| Item \| Pension \| Gratuity \| Leave Encashment \| Pension (2023) \| Gratuity (2023) \| Leave Encashment (2023) \| \|---\|---\|---\|---\|---\|---\|---\| \| VI Change in Fair Value of Assets \| 854.51 \| 423.43 \| – \| 882.68 \| 401.92 \| – \| \| 1. Plan Assets at the beginning of the year \| 854.51 \| 423.43 \| – \| 882.68 \| 401.92 \| – \| \| 2. Asset acquired in Business Combination \| – \| – \| – \| – \| – \| – \| \| 3. Interest Income \| 66.54 \| 33.08 \| – \| 58.63 \| 27.86 \| – \| \| 4. Remeasurement Gains / (Losses) on plan assets \| 21.85 \| 3.45 \| – \| (13.71) \| (1.15) \| – \| \| 5. Actual Company Contributions \| 57.75 \| 47.35 \| – \| 32.38 \| 43.21 \| – \| \| 6. Benefits Paid \| (80.63) \| (48.55) \| – \| (105.41) \| (48.41) \| – \| \| 7. Effects of transfer In / (Out) \| (0.07) \| – \| – \| (0.06) \| – \| – \| \| 8. Plan Assets at the end of the year \| 919.95 \| 458.76 \| – \| 854.51 \| 423.43 \| – \| SECTION: VII Actuarial Assumptions As at 31st March, 2024 and 31st March, 2023: \| Item \| Discount Rate (%) \| Discount Rate (%) \| \|---\|---\|---\| \| 1. Pension \| 7.00 \| 7.50 \| \| 2. Gratuity \| 7.00 \| 7.50 \| \| 3. Leave Encashment \| 7.00 \| 7.50 \| The estimates of future salary increases, generally between 4% to 6%, considered in actuarial valuations take account of inflation, seniority, promotion, and other relevant factors such as supply and demand factors in the employment market. SECTION: VIII Major Category of Plan Assets as a % of the Total Plan Assets As at 31st March, 2024 and 31st March, 2023: \| Item \| As at 31st March, 2024 \| As at 31st March, 2023 \| \|---\|---\|---\| \| 1. Government Securities / Special Deposit with RBI \| 15.32% \| 16.12% \| \| 2. High Quality Corporate Bonds \| 11.62% \| 11.06% \| \| 3. Insurer Managed Funds* \| 61.69% \| 63.00% \| \| 4. Mutual Funds \| 6.83% \| 5.09% \| \| 5. Cash and Cash Equivalents \| 4.54% \| 4.73% \| \| 6. Term Deposits \| – \| – \| * In the absence of detailed information regarding plan assets which is funded with Insurance Companies, the composition of each major category of plan assets, the percentage or amount for each category to the fair value of plan assets has not been disclosed. The fair value of Government securities, corporate bonds, and mutual funds are determined based on quoted market prices in active markets. The employee benefit plans do not hold any securities issued by the Company. SECTION: IX Basis used to determine the Expected Rate of Return on Plan Assets The expected rate of return on plan assets is based on the current portfolio of assets, investment strategy, and market scenario.
In order to protect the capital and optimize returns within acceptable risk parameters, the plan assets are well diversified. SECTION: X Net Asset / (Liability) recognised in Balance Sheet (including experience adjustment impact) \| Item \| Pension \| Gratuity \| Leave Encashment \| Pension (2023) \| Gratuity (2023) \| Leave Encashment (2023) \| \|---\|---\|---\|---\|---\|---\|---\| \| 1. Present Value of Defined Benefit Obligation \| 898.65 \| 496.77 \| 171.48 \| 878.89 \| 439.40 \| 154.53 \| \| 2. Fair Value of Plan Assets \| 919.95 \| 458.76 \| – \| 854.51 \| 423.43 \| – \| \| 3. Status [Surplus / (Deficit)] \| 21.30 \| (38.01) \| (171.48) \| (24.38) \| (15.97) \| (154.53) \| \| 4. Experience Adjustment of Plan Assets [Gain / (Loss)] \| 21.85 \| 3.45 \| – \| (13.71) \| (1.15) \| – \| \| 5. Experience Adjustment of obligation [(Gain) / Loss] \| (26.79) \| 23.27 \| 0.60 \| (1.31) \| 26.27 \| 8.33 \| SECTION: XI Sensitivity Analysis The Sensitivity Analysis below has been determined based on reasonably possible change of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant. These sensitivities show the hypothetical impact of a change in each of the listed assumptions in isolation. \| Item \| DBO as at 31st March, 2024 \| DBO as at 31st March, 2023 \| \|---\|---\|---\| \| 1. Discount Rate + 100 basis points \| 1479.71 \| 1392.74 \| \| 2. Discount Rate - 100 basis points \| 1664.94 \| 1563.32 \| \| 3. Salary Increase Rate + 1% \| 1658.44 \| 1557.24 \| \| 4. Salary Increase Rate – 1% \| 1483.91 \| 1395.05 \| SECTION: Maturity Analysis of the Benefit Payments \| Item \| As at 31st March, 2024 \| As at 31st March, 2023 \| \|---\|---\|---\| \| 1. Year 1 \| 203.80 \| 216.14 \| \| 2. Year 2 \| 266.30 \| 214.54 \| \| 3. Year 3 \| 206.05 \| 197.58 \| \| 4. Year 4 \| 131.17 \| 182.67 \| \| 5. Year 5 \| 108.20 \| 115.26 \| \| 6. Next 5 Years \| 570.92 \| 499.51 \| SECTION: (vii) Leases SECTION: As a Lessee The Company’s significant leasing arrangements are in respect of operating leases for land, buildings (comprising licensed properties, residential premises, office premises, stores, warehouses, etc.) and plant & equipment. These arrangements generally range between 2 years and 10 years, except for certain land and building leases where the lease term ranges up to 99 years. The lease arrangements have extension/termination options exercisable by either party which may make the assessment of lease term uncertain. The total cash outflow for leases for the year is ` 414.06 Crores (2023 - ` 412.57 Crores) [including payments of ` 324.74 Crores (2023 - ` 329.16 Crores) in respect of short-term/low-value leases and variable lease payments of ` 6.84 Crores (2023 - ` 5.90 Crores)]. The sensitivity of variable lease payments and effect of extension/termination options not included in measurement of lease liabilities is not material. SECTION: The undiscounted maturities of lease liabilities over the remaining lease term is as follows: \| Term \| As at 31st March, 2024 \| As at 31st March, 2023 \| \|---\|---\|---\| \| Not later than three years \| 166.40 \| 172.10 \| \| Later than three years and not later than ten years \| 159.66 \| 167.52 \| \| Later than ten years and not later than twenty-five years \| 211.92 \| 216.82 \| \| Later than twenty-five years and not later than fifty years \| 201.71 \| 205.12 \| \| Later than fifty years \| 184.74 \| 192.86 \| SECTION: As a Lessor The Company has leased out its investment properties, etc. under operating lease for periods ranging up to 30 years. Lease payments are structured with periodic escalations consistent with the prevailing market conditions. There are no variable lease payments.
SECTION: The undiscounted minimum lease payments to be received over the remaining non-cancellable term on an annual basis are as follows: \| Term \| As at 31st March, 2024 \| As at 31st March, 2023 \| \|---\|---\|---\| \| 1st year \| 18.53 \| 1.43 \| \| 2nd year \| 18.39 \| 0.89 \| \| 3rd year \| 8.33 \| 0.75 \| \| 4th year \| 0.84 \| 0.61 \| \| 5th year \| 0.88 \| 0.64 \| \| Beyond 5 years \| 26.62 \| 26.31 \| SECTION: (viii) Under the terms of the Joint Venture Agreement (JVA) Logix Developers Private Limited (LDPL) (CIN: U70101DL2010PTC207640) was to develop a luxury hotel-cum-service apartment complex. However, Logix Estates Private Limited, Noida, the JV partner communicated its intention to explore alternative development plans to which the Company reiterated that it was committed only to the project as envisaged in the JVA. The JV partner refused to progress the project and instead expressed its intent to exit the JV by selling its stake to the Company and subsequently proposed that both parties should find a third party to sell the entire shareholding in LDPL. The resultant deadlock has stalled the project. The Company’s petition that the affairs of the JV are being conducted in a manner that is prejudicial to the interest of the Company and the JV entity, as also a petition for winding up of LDPL filed by Logix Estates, are currently before the Hon’ble National Company Law Tribunal. New Okhla Industrial Development Authority (NOIDA), vide letter dated 6th July, 2022, cancelled the sub-lease for the land on which the project was to be constructed on account of non-payment of lease installments and non-fulfilment of the conditions of the sub-lease, including forfeiture of the amount deposited. Upon cancellation of the sub-lease, LDPL is evaluating all options to pursue its rights. The financial statements of LDPL for the year ended 31st March, 2024 are yet to be approved by its Board of Directors. SECTION: (ix) During the year, the Company acquired, in aggregate, 2,443 Equity Shares of Rs. 10/- each and 9,571 Compulsorily Convertible Preference Shares of Rs. 10/- each of Sproutlife Foods Private Limited (‘Sproutlife’) for an aggregate consideration of ` 225.00 crores (Refer Note 4), consequent to which the Company’s shareholding in Sproutlife aggregated 44.74% of its share capital, on a fully diluted basis, as on 31st March, 2024. Sproutlife became an associate of the Company with effect from 4th May, 2023. The Company has agreed to acquire 100% of the share capital (on a fully diluted basis) of Sproutlife over a time period of about three to four years from the execution of the transaction documents. Further infusion of ` 30 crores will be made through a primary subscription by 31st March, 2025 or such other later date as may be mutually agreed upon, based on pre-agreed pre-money valuation, taking the Company’s shareholding in Sproutlife to 47.5%, on a fully diluted basis. The consideration for acquisition of the balance stake of 52.5% will be determined based on pre-agreed valuation criteria and fulfilment of applicable terms and conditions. SECTION: (x) During the year, the Company has divested its entire shareholding, i.e., 26.00% of the paid-up share capital, held in Espirit Hotels Private Limited (Espirit), consequent to which Espirit ceased to be a joint venture of the Company. SECTION: (xi) The Ministry of Corporate Affairs (MCA) had issued the Companies (Indian Accounting Standards) (Amendment) Rules, 2023 on 31st March, 2023 amending the following Ind AS, which are effective for annual periods beginning on or after 1st April, 2023: - Ind AS 1, ‘Presentation of Financial Statements’ - This amendment requires companies to disclose their material accounting policies rather than their significant accounting policies. Consequently, the Company has disclosed material accounting policies. There is no impact on the standalone financial statements. - Ind AS 12 ‘Income Taxes’ - This amendment has narrowed the scope of the initial recognition exemption so that it does not apply to transactions that give rise to equal and offsetting temporary differences. The amendments clarify how companies account for deferred tax on transactions such as leases. The Company previously recognised for deferred tax on leases on a net basis. Pursuant to the aforementioned amendment, the Company has grossed-up the deferred tax assets (DTA) and deferred tax liabilities (DTL) recognised in relation to leases by ` 70.05 Crores each w.e.f. 1st April, 2022.
However, the said gross-up has no impact on the net deferred tax liabilities/expense presented in the standalone financial statements. SECTION: (xii) Information in respect of Options granted under the Company’s Employee Stock Option Schemes (‘Schemes’): ``` ``` SECTION: ITC Employee Stock Option Scheme - 2006 and 2010 1. Date of Shareholders’ approval: - 22-01-2007 (2006 Scheme) - 23-07-2010 (2010 Scheme) 2. Total number of Options approved under the Schemes: - Options equivalent to 37,89,18,503 Ordinary Shares of ₹1.00 each (Adjusted for Bonus Shares issued in terms of Shareholders’ approval) for the 2006 Scheme. - Options equivalent to 55,60,44,823 Ordinary Shares of ₹1.00 each (Adjusted for Bonus Shares issued in terms of Shareholders’ approval) for the 2010 Scheme. 3. Vesting Schedule: - The vesting period for conversion of Options is as follows: - On completion of 12 months from the date of grant of the Options: 30% vests - On completion of 24 months from the date of grant of the Options: 30% vests - On completion of 36 months from the date of grant of the Options: 40% vests 4. Pricing Formula: - The Pricing Formula, as approved by the Shareholders of the Company, is such price, as determined by the Nomination & Compensation Committee, which is no lower than the closing price of the Company’s Share on National Stock Exchange of India Limited (‘the NSE’) on the date of grant, or the average price of the Company’s Share in the six months preceding the date of grant based on the daily closing price on the NSE, or the ‘market price’ as defined from time to time under the Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021. The Options have been granted at ‘market price’ as defined under the aforesaid Regulations. 5. Maximum term of Options granted: - Five years - the exercise period commences from the date of vesting of the Options granted and expires at the end of five years from the date of vesting. 6. Source of Shares: - Primary 7. Variation in terms of Options: - None --- SECTION: Additional Notes to the Financial Statements SECTION: Method used for accounting of share-based payment plans and effect of employee share based plans on the entity’s profit or loss for the period and on its financial position - The employee compensation cost has been calculated using the fair value method of accounting for Options issued under the Company’s Employee Stock Option Schemes. The employee compensation cost as per fair value method for the financial year 2023-24 is ₹103.10 Crores (2023 - ₹58.50 Crores); for the group entities, such compensation cost is ₹5.54 Crores (2023 - ₹2.61 Crores) [Refer Note 24]. SECTION: Nature and extent of employee share based payment plans that existed during the period including the general terms and conditions of each plan - In addition to the terms and conditions provided in the table under Serial Nos. (3) to (5) hereinbefore, each Option entitles the holder thereof to apply for and be allotted ten Ordinary Shares of the Company of ₹1.00 each upon payment of the exercise price during the exercise period.
SECTION: Weighted average exercise prices and weighted average fair values of Options whose exercise price either equals or exceeds or is less than the market price of the stock - Weighted average exercise price per Option: ₹4530.73 - Weighted average fair value per Option: ₹1064.83 SECTION: Option movements during the year - Options outstanding at the beginning of the year: - ITC Employee Stock Option Scheme - 2006: 2,85,808 - ITC Employee Stock Option Scheme - 2010: 1,29,23,671 - Options granted during the year: - ITC Employee Stock Option Scheme - 2010: 15,16,450 - Options cancelled and lapsed during the year: - ITC Employee Stock Option Scheme - 2006: 95,59,989 - Options vested and exercisable during the year (net of Options lapsed and exercised): - ITC Employee Stock Option Scheme - 2006: 43,950 - ITC Employee Stock Option Scheme - 2010: 8,36,370 - Options exercised during the year: - ITC Employee Stock Option Scheme - 2006: 87,039 - ITC Employee Stock Option Scheme - 2010: 55,83,334 - Number of Ordinary Shares of ₹1.00 each arising as a result of exercise of Options during the year: - ITC Employee Stock Option Scheme - 2006: 8,70,390 - ITC Employee Stock Option Scheme - 2010: 5,58,33,340 - Options outstanding at the end of the year: - ITC Employee Stock Option Scheme - 2006: 1,97,814 - ITC Employee Stock Option Scheme - 2010: 87,96,798 - Options exercisable at the end of the year: - ITC Employee Stock Option Scheme - 2006: 1,71,284 - ITC Employee Stock Option Scheme - 2010: 58,80,098 - Money realised by exercise of the Options during the year (₹ in Crores): - ITC Employee Stock Option Scheme - 2006: 20.74 - ITC Employee Stock Option Scheme - 2010: 1422.09 --- SECTION: Summary of the status of Options: - As at 31st March, 2024: - Outstanding at the beginning of the year: 1,32,09,479 (Weighted Average Exercise Price: ₹2655.20) - Granted during the year: 15,16,450 (Weighted Average Exercise Price: ₹4530.73) - Lapsed during the year: 60,944 (Weighted Average Exercise Price: ₹2739.44) - Exercised during the year: 56,70,373 (Weighted Average Exercise Price: ₹2544.51) - Outstanding at the end of the year: 89,94,612 (Weighted Average Exercise Price: ₹3040.61) - Options exercisable at the end of the year: 60,51,382 - Weighted average share price of Shares arising upon exercise of Options: ₹2657.61 --- SECTION: Summary of Options outstanding, scheme-wise: - As at 31st March, 2024: - ITC Employee Stock Option Scheme - 2006: 1,97,814 (Range of Exercise Prices: ₹1698.00 – ₹3463.50, Weighted average remaining contractual life: 3.19) - ITC Employee Stock Option Scheme - 2010: 87,96,798 (Range of Exercise Prices: ₹1698.00 – ₹4534.50, Weighted average remaining contractual life: 3.37) --- SECTION: Description of the method used during the year to estimate the fair values of Options - The fair value of each Option is estimated using the Black Scholes Option Pricing model. - Weighted average exercise price per Option: ₹4530.73 - Weighted average fair value per Option: ₹1064.83 SECTION: Significant assumptions used to ascertain the above: - (i) Risk-free interest rate: 7.28% - (ii) Expected life: 4.61 years - (iii) Expected volatility: 23.69% - (iv) Expected dividends: 3.41% - (v) The price of the underlying shares in market at the time of Option grant: ₹4530.73 (One Option = Ten Ordinary Shares) --- SECTION: Methodology for determination of expected volatility - The volatility used in the Black Scholes Option Pricing model is the annualised standard deviation of the continuously compounded rates of return on the stock over a period of time. The period considered for the working is commensurate with the expected life of the Options and is based on the daily volatility of the Company’s stock price on NSE. The Company has incorporated the early exercise of Options by calculating expected life on past exercise behaviour. There are no market conditions attached to the grant and vest. --- SECTION: Options granted to Directors and Senior managerial personnel - Name and Designation: - S. Puri, Chairman & Managing Director: 1,34,500 Options - S. Dutta, Executive Director & Chief Financial Officer: 67,250 Options - H. Malik, Executive Director: 18,750 Options - B. Sumant, Executive Director: 67,250 Options - S. Kaul, Group Head - ITD, MAB, Start-up Ventures, LSTC & Quality: 18,750 Options - A. K. Rajput, President - Corporate Affairs: 18,750 Options - S. Sivakumar, Group Head - Agri Business, IT, Sustainability, CSR & EHS: 18,750 Options - R. K.
Singhi, Executive Vice President & Company Secretary: 11,050 Options The aforesaid Options were granted at the exercise price of ₹4534.50 per Option, being the ‘market price’ as defined under the Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021. --- SECTION: Information in respect of Stock Appreciation Linked Reward Plan 1. Nature and extent of Stock Appreciation Linked Reward Plan: - ITC Employee Cash Settled Stock Appreciation Linked Reward Plan (ITC ESAR Plan). Under the ITC ESAR Plan, the eligible employees receive cash on vesting of SAR units, equivalent to the difference between the grant price and the market price of the share on vesting of SAR units subject to the terms and conditions specified in the Plan. 2. Settlement Method: - Cash – Settled 3. Vesting period and maximum term of SAR granted: - Over a period of five years from the date of grant in accordance with the Plan. 4. Method used to estimate the fair value of SAR granted: - Black Scholes Option Pricing model. The said model considers inputs such as Risk-free interest rate, Expected life, Expected volatility, Expected dividend, Market price etc. The number of SAR units outstanding as at 31st March, 2024 is 9,31,606 (2023 - 25,00,251) and the weighted average fair value at measurement date is ₹1103.96 (2023 - ₹980.89) per SAR unit. 5. Total cost recognised in the profit or loss: - The cost has been calculated using the fair value method of accounting for SAR units issued under the ITC ESAR Plan. The employee benefits expense as per fair value method for the financial year 2023-24 is ₹32.06 Crores (2023 - ₹208.62 Crores) and ₹1.43 Crores (2023 - ₹7.51 Crores) for group entities. The amount carried in the Balance Sheet as a non-current financial liability is ₹13.76 Crores (2023 - ₹69.38 Crores) and as a current financial liability is ₹71.14 Crores (2023 - ₹118.80 Crores). --- SECTION: Trade Payables ageing schedule - Outstanding for following periods from due date of payment as at 31st March, 2024: - MSME: ₹31.86 (Not Due) - Others: ₹639.77 (Total) - Disputed Dues – Others: ₹0.28 - SUB-TOTAL: ₹671.63 - TOTAL: ₹4489.55 - Outstanding for following periods from due date of payment as at 31st March, 2023: - MSME: ₹44.01 (Not Due) - Others: ₹582.85 (Total) - Disputed Dues – Others: ₹0.28 - SUB-TOTAL: ₹626.86 - TOTAL: ₹4351.26 --- SECTION: Micro, Small 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, 2024. --- SECTION: Financial Ratios - Current Ratio (in times): 2.91 (2024), 2.84 (2023) - Return on Equity Ratio (in %): 29.22 (2024), 28.99 (2023) - Inventory Turnover Ratio (in times): 5.98 (2024), 6.75 (2023) - Trade Receivables Turnover Ratio (in times): 24.66 (2024), 32.51 (2023) - Trade Payables Turnover Ratio (in times): 8.39 (2024), 8.99 (2023) - Net Capital Turnover Ratio (in times): 2.94 (2024), 3.05 (2023) - Net Profit Ratio (in %): 29.42 (2024), 26.91 (2023) - Return on Capital Employed (in %): 37.97 (2024), 38.72 (2023) - Return on Investment (in %): 8.91 (2024), 6.79 (2023) --- SECTION: Figures presented as “…” are below the rounding off norm adopted by the Company. SECTION: Figures for the previous year are re-arranged, wherever necessary, to conform to the figures of the current period. The same does not have any material impact on the standalone financial statements. SECTION: The standalone financial statements were approved for issue by the Board of Directors on 23rd May, 2024. Such financial statements are required to be placed before the shareholders for adoption in terms of Companies Act, 2013. ``` ``` SECTION: ITC Limited REPORT AND ACCOUNTS 2024 SECTION: Notes to the Standalone Financial Statements SECTION: 29. Segment Reporting Segment Revenue - Gross: - Year 2024: - FMCG - Cigarettes: 30596.59 - FMCG - Others: 20966.83 - FMCG - Total: 51563.42 - Hotels: 2989.50 - Agri Business: 15791.83 - Paperboards, Paper and Packaging: 8344.40 - Segment Total: 78689.15 - Eliminations: (9242.95) - Gross Revenue from sale of products and services: 69446.20 - Year 2023: - FMCG - Cigarettes: 28206.83 - FMCG - Others: 19122.50 - FMCG - Total: 47329.33 - Hotels: 2585.03 - Agri Business: 18172.34 - Paperboards, Paper and Packaging: 9081.35 - Segment Total: 77168.05 - Eliminations: (7687.16) - Gross Revenue from sale of products and services: 69480.89 **SECTION: 2.
Segment Results Segment Results: - Year 2024: - FMCG - Cigarettes: 19089.17 - FMCG - Others: 1778.55 - FMCG - Total: 20867.72 - Hotels: 753.77 - Agri Business: 1254.43 - Paperboards, Paper and Packaging: 1377.60 - Segment Total: 24253.52 - Eliminations: (196.05) - Total: 24057.47 - Year 2023: - FMCG - Cigarettes: 17927.06 - FMCG - Others: 1374.18 - FMCG - Total: 19301.24 - Hotels: 541.90 - Agri Business: 1327.74 - Paperboards, Paper and Packaging: 2293.99 - Segment Total: 23464.87 - Eliminations: (196.05) - Total: 23487.06 SECTION: 3. Other Information Segment Assets and Liabilities: - Year 2024: - FMCG - Cigarettes: Assets: 9160.85, Liabilities: 5248.89 - FMCG - Others: Assets: 12500.83, Liabilities: 2501.71 - FMCG - Total: Assets: 21661.68, Liabilities: 7750.60 - Hotels: Assets: 6683.65, Liabilities: 1157.29 - Agri Business: Assets: 5024.81, Liabilities: 1380.10 - Paperboards, Paper and Packaging: Assets: 9413.71, Liabilities: 1257.39 - Segment Total: Assets: 42783.85, Liabilities: 11545.38 - Unallocated Corporate Assets / Liabilities: 44543.75, 3548.92 - Total: Assets: 87327.60, Liabilities: 15094.30 - Year 2023: - FMCG - Cigarettes: Assets: 7290.67, Liabilities: 5056.90 - FMCG - Others: Assets: 11966.57, Liabilities: 2351.99 - FMCG - Total: Assets: 19257.24, Liabilities: 7408.89 - Hotels: Assets: 6514.91, Liabilities: 940.88 - Agri Business: Assets: 4114.31, Liabilities: 1649.76 - Paperboards, Paper and Packaging: Assets: 9201.17, Liabilities: 1315.17 - Segment Total: Assets: 39087.63, Liabilities: 11314.70 - Unallocated Corporate Assets / Liabilities: 43174.11, 3353.24 - Total: Assets: 82261.74, Liabilities: 14667.94 SECTION: Notes to the Standalone Financial Statements (Contd.) 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. The Operating Segments have been reported in a manner consistent with the internal reporting provided to the Corporate Management Committee, which is the Chief Operating Decision Maker. 2. The business groups comprise the following: - FMCG: Cigarettes – Cigarettes, Cigars, etc. - Others – Branded Packaged Foods Businesses (Staples & Meals; Snacks; Dairy & Beverages; Biscuits & Cakes; Chocolates, Coffee & Confectionery); Education and Stationery Products; Personal Care Products; Safety Matches and Agarbattis. - Hotels – Hoteliering. - Paperboards, Paper and Packaging – Paperboards, Paper including Specialty Paper and Packaging including Flexibles. - Agri Business – Agri commodities such as wheat, rice, spices, coffee, soya, and leaf tobacco. 3. The geographical information considered for disclosure are: - Revenue within India. - Revenue outside India. 4. Segment results of ‘FMCG: Others’ are after considering significant business development, brand building, and gestation costs of the Branded Packaged Foods businesses and Personal Care Products business. 5. As stock options and stock appreciation linked reward units are granted under the ITC ESOS and ITC ESARP respectively to align the interests of employees with those of shareholders and also to attract and retain talent for the enterprise as a whole, the charge thereof does not form part of the segment performance reviewed by the Corporate Management Committee. 6. The Company is not reliant on revenues from transactions with any single external customer and does not receive 10% or more of its revenues from transactions with any single external customer. SECTION: 30. Related Party Disclosures SECTION: 1. ENTERPRISES WHERE CONTROL EXISTS: SECTION: Subsidiaries:** - Srinivasa Resorts Limited - Fortune Park Hotels Limited - Bay Islands Hotels Limited - WelcomHotels Lanka (Private) Limited, Sri Lanka - Landbase India Limited - Russell Credit Limited and its subsidiary - Greenacre Holdings Limited - Technico Pty Limited, Australia and its subsidiaries - Technico Technologies Inc., Canada - Technico Asia Holdings Pty Limited, Australia and its subsidiary - Technico Horticultural (Kunming) Co. Limited, China - Technico Agri Sciences Limited - Wimco Limited - Pavan Poplar Limited - Prag Agro Farm Limited - ITC Infotech India Limited and its subsidiaries - ITC Infotech Limited, UK - ITC Infotech (USA), Inc. and its subsidiary - Indivate Inc. - ITC Infotech Do Brasil LTDA., Brazil - ITC Infotech Malaysia SDN. BHD. - ITC Infotech France SAS - ITC Infotech GmbH, Germany - ITC Infotech de México, S.A. de C.V. (w.e.f. 17.04.2023) - ITC Infotech Arabia Limited (w.e.f. 17.12.2023) - Gold Flake Corporation Limited - ITC Integrated Business Services Limited and its subsidiary - MRR Trading & Investment Company Limited - Surya Nepal Private Limited and its subsidiary - Surya Nepal Ventures Private Limited (w.e.f.
03.07.2023) - North East Nutrients Private Limited - ITC IndiVision Limited - ITC Fibre Innovations Limited - ITC Hotels Limited (w.e.f. 28.07.2023) SECTION: 2. OTHER RELATED PARTIES WITH WHOM THE COMPANY HAD TRANSACTIONS SECTION: i) Associates & Joint Ventures: SECTION: Associates - Gujarat Hotels Limited - International Travel House Limited - Delectable Technologies Private Limited - Mother Sparsh Baby Care Private Limited - Sproutlife Foods Private Limited (w.e.f. 04.05.2023) - Tobacco Manufacturers (India) Limited (of which the Company is an associate) and the subsidiaries of its ultimate parent company (British American Tobacco p.l.c.) SECTION: Associate of the Company’s subsidiary - ATC Limited – being associate of Gold Flake Corporation Limited SECTION: Joint Venture - Maharaja Heritage Resorts Limited SECTION: Joint Venture of the Company’s subsidiary - ITC Filtrona Limited (formerly known as ITC Essentra Limited) – being joint venture of Gold Flake Corporation Limited SECTION: 30. Related Party Disclosures (Contd.) SECTION: ii) a) Key Management Personnel (KMP): - S. Puri, Chairman & Managing Director - S. Dutta, Executive Director & Chief Financial Officer - H. Malik, Executive Director (w.e.f. 12.08.2023) - B. Sumant, Executive Director - S. Banerjee, Non-Executive Director - H. Bhargava, Non-Executive Director - A. M. Bharucha, Non-Executive Director (w.e.f. 12.08.2023) - A. Duggal, Non-Executive Director - M. Gupta, Non-Executive Director - R. Jain, Non-Executive Director (w.e.f 01.01.2024) - S. Mukherjee, Non-Executive Director - A. Nayak, Non-Executive Director - S. Panray, Non-Executive Director - N. Rao, Non-Executive Director - A. K. Seth, Non-Executive Director - M. Shankar, Non-Executive Director - N. Anand, Executive Director (up to 02.01.2024) - P. R. Chittaranjan, Non-Executive Director (up to 31.08.2023) - D. R. Simpson, Non-Executive Director (up to 29.01.2024) SECTION: Independent Directors SECTION: Company Secretary - R. K. Singhi SECTION: Members - Corporate Management Committee - S. Puri - S. Dutta - S. Kaul - H. Malik - A. Rajput - S. Sivakumar - B. Sumant - N. Anand (up to 02.01.2024) SECTION: b) Related Parties of KMP: SECTION: I) Close Members of KMP: - N. Singhi (wife of R. K. Singhi) - Y. Singhi (son of R. K. Singhi) - T. Anand (wife of N. Anand) (up to 02.01.2024) SECTION: II) Entities in which KMP / close member of KMP is interested: - Décor & Design - Bharucha & Partners SECTION: iii) Employee Trusts: - IATC Provident Fund - ITC Defined Contribution Pension Fund - ITC Management Staff Gratuity Fund - ITC Employees Gratuity Fund - ITC Gratuity Fund ‘C’ - ITC Pension Fund - ILTD Seasonal Employees Pension Fund - ITC Platinum Jubilee Pension Fund - ITC Bhadrachalam Paperboards Limited Management Staff Pension Fund - ITC Bhadrachalam Paperboards Limited Gratuity Fund ‘A’ - ITC Bhadrachalam Paperboards Limited Gratuity Fund ‘C’ - ITC Hotels Limited Employees Superannuation Scheme ``` ``` SECTION: Advances and Adjustments Advances Given during the year: 0.03 Adjustment / Receipt towards Refund of Advances: 0.03 Advances Received during the year: 89.33, 0.12, 981.64, 1813.30, 1070.97, 1813.42 Adjustment / Payment towards Refund of Advances: 27.73, 120.99, 1333.30, 1786.29, 1361.03, 1907.28 Adjustment / Receipt towards Refund of Deposit: 0.05, 0.02, 0.05, -, 0.10, 0.02 Remuneration to KMP: - Short term benefits: 60.59, 59.82 - Other long-term incentives: 40.34, 28.95 - Post employment benefits: 32 - Share Based Payments: SECTION: Outstanding Balances i) Receivables: 82.30, 38.61, 29.56, 46.56, 6.24, 16.04, 118.10, 101.21 ii) Advances Given: 21.30, -, 21.30, - iii) Deposits Given: 0.60, 0.60, 0.01, 0.06, 0.03, 0.07, 0.64, 0.73 iv) Advances Taken: 88.56, 26.96, 367.76, 719.42, 456.32, 746.38 v) Deposits Taken: 0.04, 0.04, 0.04, 0.04 vi) Payables: 11.77, 6.25, 5.77, 6.25, 9.65, 20.60, 38.01, 40.35, 65.20, 73.45 SECTION: Commitments 0.38, 0.66 SECTION: The amounts outstanding are unsecured and will be settled in cash. 1 denotes inter-se transfer of investments by a subsidiary to the Company at book value; 2 Post employment benefits are actuarially determined on an overall basis and hence not separately provided. Payments made on settlement of leave liability upon retirement - ` 1.50 Crores (2023 - ` 2.69 Crores) has not been included in the above; 3 During the year, the Company granted Stock Options to eligible employees, including Executive Directors and KMPs, under its Employee Stock Option Schemes at ‘market price’ [within the meaning of the Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021]. The Company has also granted Employee Stock Appreciation Linked Reward Units (ESAR Units) to the aforesaid persons in the previous years under the ‘ITC Employee Cash Settled Stock Appreciation Linked Reward Plan’.
Since such Stock Options and ESAR Units are not tradeable, no perquisite or benefit is immediately conferred upon the employee by grant of such Stock Options / ESAR Units, and accordingly the said grants have not been considered as ‘remuneration’. However, in accordance with Ind AS -102, the Company has recorded employee benefits expense by way of share based payments to employees at ` 135.16 Crores for the year ended 31st March, 2024 (2023 - ` 267.12 Crores), of which ` 30.85 Crores (2023 - ` 35.43 Crores) is attributable to Executive Directors and KMPs. SECTION: Related Party Disclosures (Contd.) SECTION: Information Regarding Significant Transactions / Balances (Generally in excess of 10% of the total transaction value of the same type) RELATED PARTY TRANSACTIONS SUMMARY - Sale of Goods / Services: - ITC Infotech India Limited: 15.51, 10.66 - Fortune Park Hotels Limited: 7.82, 6.35 - Srinivasa Resorts Limited: 6.95, 5.86 - Purchase of Goods / Services: - ITC Filtrona Limited: 639.27, 438.11 - Acquisition cost of Property, Plant and Equipment: - British American Tobacco (GLP) Limited: 23.70, 36.35 - Sale of Property, Plant and Equipment: - Employee Trust – Pension Funds: 21.30, - - Tobacco Manufacturers (India) Limited: 4690.90, 3648.48 - Investment Purchased from Subsidiary: - ITC IndiVision Limited: 17.74, 9.81 - Investment in Subsidiaries / Associate: - British American Tobacco (GLP) Limited: 4.86, 21.97 - Value of Share Based Payment: - Rent Received: - ITC Infotech India Limited: 0.38, 0.66 - Rent Paid: - Landbase India Limited: 7.59, 6.87 - Remuneration of Managers on Deputation reimbursed: - Remuneration to KMP: - S. Puri: 10.90, 9.96 - N. Anand (related party up to 02.01.2024): 3.95, 5.07 - B. Sumant: 5.52, 4.58 - S. Dutta: 3.08, 2.51 - H. Malik: 1.81, 2.74 - R. K. Singhi: 0.87, 0.72 SECTION: Notes to the Standalone Financial Statements SECTION: Financial Instruments and Related Disclosures SECTION: Capital Management The Company’s financial strategy aims to support its strategic priorities and provide adequate capital to its businesses for growth and creation of sustainable stakeholder value. The Company funds its operations through internal accruals and aims at maintaining a strong capital base to support the future growth of its businesses. During the year, the Company issued 5,67,03,730 Ordinary Shares (2023 - 10,47,61,810 Ordinary Shares) of ` 1.00 each amounting to ` 5.67 Crores (2023 - ` 10.48 Crores) towards its employee stock options. The securities premium stood at ` 14842.78 Crores as at 31st March, 2024 (2023 - ` 13065.62 Crores). SECTION: Categories of Financial Instruments Particulars, Note, Carrying Value, Fair Value, Carrying Value, Fair Value A. Financial assets a) Measured at amortised cost i) Cash and cash equivalents: 11, 197.63, 197.63, 206.88, 206.88 ii) Other Bank Balances: 12, 6020.06, 6020.06, 3624.38, 3624.38 iii) Investment in Bonds / Debentures, Preference Shares & Government or Trust Securities: 4, 9, 7384.61, 7238.15, 8154.48, 8174.92 iv) Investment in Mutual Funds: 4, 366.88, 362.91, 346.05, 337.99 v) Loans: 5, 11.73, 11.24, 10.02, 9.35 vi) Trade receivables: 10, 3311.45, 3311.45, 2321.33, 2321.33 vii) Other financial assets: 6, 1220.16, 1173.66, 4282.01, 4234.05 Sub-total: 18512.52, 18315.10, 18945.15, 18908.90 b) Measured at Fair value through OCI i) Investment in Equity shares: 4, 3979.47, 3979.47, 1464.41, 1464.41 ii) Investment in Mutual Funds: 4, 4912.78, 4912.78, 3676.53, 3676.53 Sub-total: 8892.25, 8892.25, 5140.94, 5140.94 c) Measured at Fair value through Profit or Loss i) Investment in Mutual Funds: 9, 9355.06, 9355.06, 8711.14, 8711.14 ii) Investment in Bonds / Debentures, Certificates of Deposit: 9, 2524.47, 2524.47, 5360.34, 5360.34 iii) Investment in Venture Capital Funds: 4, 121.96, 121.96, 119.25, 119.25 iv) Investment in Equity & Preference Shares: 4, 39.34, 39.34, 39.34, 39.34 Sub-total: 12040.83, 12040.83, 14230.07, 14230.07 d) Derivatives measured at fair value i) Derivative instruments not designated as hedging instruments: 6, 2.05, 2.05, 2.68, 2.68 ii) Derivative instruments designated as hedging instruments: 6, 0.53, 0.53, 29.38, 29.38 Sub-total: 2.58, 2.58, 32.06, 32.06 Total financial assets: 39448.18, 39250.76, 38348.22, 38311.97 SECTION: Financial Instruments and Related Disclosures (Contd.) Particulars, Note, Carrying Value (` in Crores), Fair Value (` in Crores), Carrying Value (` in Crores), Fair Value (` in Crores) B.
Financial liabilities a) Measured at amortised cost i) Sales tax deferment loans: 14, 3.28, 2.90, 4.54, 3.66 ii) Trade payables: 4489.55, 4489.55, 4351.26, 4351.26 iii) Lease Liabilities: 15, 308.69, 308.69, 320.13, 320.13 iv) Other financial liabilities: 16, 1750.52, 1730.19, 1863.50, 1834.49 Sub-total: 6552.04, 6531.33, 6539.43, 6509.54 b) Measured at fair value i) Derivative instruments not designated as hedging instruments: 16, 1.43, 1.43, 2.68, 2.68 ii) Derivative instruments designated as hedging instruments: 16, 4.60, 4.60, 4.34, 4.34 iii) Contingent Consideration: 16, 12.65, 12.65, 12.65, 12.65 Sub-total: 18.68, 18.68, 19.67, 19.67 Total financial liabilities: 6570.72, 6550.01, 6559.10, 6529.21 SECTION: Financial risk management objectives The Company has a system-based approach to risk management, anchored to policies and procedures and internal financial controls aimed at ensuring early identification, evaluation and management of key financial risks (such as market risk, credit risk and liquidity risk) that may arise as a consequence of its business operations as well as its investing and financing activities. Accordingly, the Company’s risk management framework has the objective of ensuring that such risks are managed within acceptable and approved risk parameters in a disciplined and consistent manner and in compliance with the applicable regulations. It also seeks to drive accountability in this regard. SECTION: Liquidity Risk The Company’s Current assets aggregate ` 36070.67 Crores (2023 - ` 35203.44 Crores) including Current Investments, Cash and cash equivalents and Other Bank Balances of ` 18134.57 Crores (2023 - ` 20188.33 Crores) against an aggregate Current liability of ` 12415.61 Crores (2023 - ` 12415.62 Crores). As part of its surplus liquidity management operations, the Company may sell instruments that are held at amortised cost. Such sales may be infrequent (even if significant in value) or insignificant in value both individually and in aggregate (even if frequent). During the year, the net loss arising on such sale amounted to ` 16.37 Crores (2023 - ` 49.13 Crores) (Refer Note 22). Other Non-current liabilities (other than lease liabilities) due between one year to three years amounted to ` 110.07 Crores (2023 - ` 154.16 Crores) and Other Non-current liabilities due after three years amounted to ` 1.56 Crores (2023 - ` 1.61 Crores) on the reporting date. The maturity analysis of undiscounted lease liabilities are disclosed under Note 28(vii). Further, while the Company’s total equity stands at ` 70984.83 Crores (2023 - ` 67593.80 Crores), it has non-current borrowings of ` 1.76 Crores (2023 - ` 3.28 Crores). In such circumstances, liquidity risk or the risk that the Company may not be able to settle or meet its obligations as they become due does not exist. SECTION: Market Risk A. Foreign Currency Risk The Company undertakes transactions denominated in foreign currency (mainly US Dollar, Pound Sterling, Euro and Japanese Yen) which are subject to the risk of exchange rate fluctuations. Financial assets and liabilities denominated in foreign currency, including the Company’s net investments in foreign operations (with a functional currency other than Indian Rupee), are also subject to reinstatement risks. SECTION: Financial Instruments and Related Disclosures (Contd.) The carrying amounts of foreign currency denominated financial assets and liabilities including derivative contracts, are as follows: As at 31st March, 2024: - Financial Assets: USD 608.02, Euro 74.58, GBP 27.00, JPY 0.00, Others 1.66, Total 711.26 - Financial Liabilities: USD 77.59, Euro 22.61, GBP 1.18, JPY 2.02, Others 0.98, Total 104.38 As at 31st March, 2023: - Financial Assets: USD 694.77, Euro 87.30, GBP 18.42, JPY 0.27, Others 14.88, Total 815.64 - Financial Liabilities: USD 99.88, Euro 22.16, GBP 2.42, JPY 8.24, Others 3.46, Total 136.16 The Company uses foreign exchange forward, futures and options contracts to hedge its exposures in foreign currency arising from firm commitments and highly probable forecast transactions.
SECTION: Forward exchange contracts that were outstanding on respective reporting dates: Designated under Hedge Accounting: As at 31st March, 2024: - Currency: US Dollar, Cross Currency: Indian Rupee, Buy: 13.59, Sell: 98.15 - Currency: Euro, Cross Currency: US Dollar, Buy: 11.15, Sell: - - Currency: CHF, Cross Currency: US Dollar, Buy: 0.15, Sell: - - Currency: GBP, Cross Currency: US Dollar, Buy: 0.02, Sell: - - Currency: JPY, Cross Currency: US Dollar, Buy: 36.03, Sell: - As at 31st March, 2023: - Currency: US Dollar, Cross Currency: Indian Rupee, Buy: 47.55, Sell: 125.68 - Currency: Euro, Cross Currency: US Dollar, Buy: 41.94, Sell: - - Currency: CHF, Cross Currency: US Dollar, Buy: -, Sell: - - Currency: GBP, Cross Currency: US Dollar, Buy: -, Sell: - - Currency: JPY, Cross Currency: US Dollar, Buy: 123.81, Sell: - The aforesaid hedges have a maturity of less than 1 year from the year end. SECTION: Not designated under Hedge Accounting Currency, Cross Currency, Buy, Sell - US Dollar, Indian Rupee, -, 45.35 - Euro, US Dollar, 1.24, 9.94 - CAD, US Dollar, -, 0.22 - CHF, US Dollar, 0.14, 3.56 - GBP, US Dollar, -, 2.98 - KWD, US Dollar, 0.06, - - JPY, US Dollar, 203.75, - - SEK, US Dollar, 0.52, - ``` ``` SECTION: Financial Instruments and Related Disclosures The Company has established risk management policies to hedge the volatility in cashflows arising from exchange rate fluctuations in respect of firm commitments and highly probable forecast transactions, through foreign exchange forward, futures, and options contracts. The proportion of forecast transactions that are to be hedged is decided based on the size of the forecast transaction and market conditions. As the counterparty for such transactions are highly rated banks or recognised exchanges, the risk of their non-performance is considered to be insignificant. The Company uses derivatives to hedge its exposure to foreign exchange rate fluctuations. Where such derivatives are not designated under hedge accounting, changes in the fair value of such hedges are recognised in the Statement of Profit and Loss. SECTION: Notes to the Standalone Financial Statements SECTION: 31. Financial Instruments and Related Disclosures (Contd.) The Company may also designate certain hedges as cash flow hedges to mitigate the risk of foreign exchange exposure on highly probable forecasted cash transactions. The currency, amount, and tenure of such hedges are generally matched to the underlying transaction(s). Changes in the fair value of the effective portion of cash flow hedges are recognised as cash flow hedging reserve in Other Comprehensive Income. While the probability of such hedges becoming ineffective is very low, the ineffective portion, if any, is immediately recognised in the Statement of Profit and Loss. Cash Flow Hedging Reserve Movement: Particulars, 2024, 2023 - At the beginning of the year: 2.48, 14.33 - Add: Changes in the fair value of effective portion of matured cash flow hedges during the year: (6.43), (154.16) - Add: Changes in fair value of effective portion of outstanding cash flow hedges: (3.45), 17.81 - Less: Amounts transferred to the Statement of Profit and Loss on occurrence of forecast hedge transactions during the year: (17.73), (81.93) - Less: Amounts transferred to the Statement of Profit and Loss due to cash flows no longer expected to occur: (1.40), (28.19) - Less: Amounts transferred to initial cost of non-financial assets: 10.85, (10.40) - Less: Net gain / (loss) transferred to the Statement of Profit and Loss on Ineffectiveness: –, – - (Less) / Add: Deferred tax: 0.41, 3.98 - At the end of the year: 1.29, 2.48 - Of the above, balances remaining in cash flow hedge reserve for matured hedging relationships: 2.19, (11.20) Once the hedged transaction materialises, the amount accumulated in the cash flow hedging reserve will be included in the initial cost of the non-financial hedged item on its initial recognition or reclassified to profit or loss, as applicable.
Outstanding balance in Cash Flow Hedge Reserve to be subsequently recycled from OCI: As at 31st March, 2024, As at 31st March, 2023 - Within one year: 1.31, 2.47 - Between one and three years: (0.02), 0.01 - Total: 1.29, 2.48 SECTION: Foreign Currency Sensitivity For every percentage point increase / decrease in the underlying exchange rate of the outstanding foreign currency denominated assets and liabilities, including derivative contracts, holding all other variables constant, the profit before tax for the year ended 31st March, 2024 would decrease / increase by ₹ 1.71 Crores (2023 - ₹ 2.85 Crores) and other equity as at 31st March, 2024 would decrease / increase by ₹ 4.91 Crores (2023 - ₹ 2.68 Crores) on a pre-tax basis. SECTION: B. Interest Rate Risk As the Company is virtually debt-free and its deferred payment liabilities do not carry interest, the exposure to interest rate risk from the perspective of financial liabilities is negligible. Further, treasury activities, focused on managing investments in debt instruments, are centralised and administered under a set of approved policies and procedures guided by the tenets of safety, liquidity, and returns. This ensures that investments are made within acceptable risk parameters after due evaluation. The Company’s investments are predominantly held in bonds / debentures, fixed deposits, certificates of deposit, and debt mutual funds. Mark to market movements in respect of the Company’s investments in bonds / debentures that are held at amortised cost are temporary and get recouped through coupon accruals. Other investments in bonds / debentures, certificates of deposit are fair valued through the Statement of Profit and Loss to recognise market volatility, which is not considered to be significant. Fixed deposits are held with highly rated banks and companies and have a short tenure and are not subject to interest rate volatility. The Company also invests in debt mutual fund schemes of leading fund houses. Such investments are susceptible to market price risks that arise mainly from changes in interest rate which may impact the return and value of such investments. However, given the relatively short tenure of the underlying portfolio of the debt mutual fund schemes in which the Company has invested, such price risk is not significant. SECTION: C. Other Price Risk The Company is not an active investor in equity markets; it holds certain investments in equity for long-term value accretion which are accordingly measured at fair value through Other Comprehensive Income. The value of investments in such equity instruments as at 31st March, 2024 is ₹ 3979.47 Crores (2023 - ₹ 1464.41 Crores). Accordingly, fair value fluctuations arising from market volatility are recognised in Other Comprehensive Income. For select agricultural commodities primarily held for trading, futures contracts are used to hedge price risks till positions in the physical market are matched. Such activities are managed by the business team within an approved policy framework. The carrying value of inventories is adjusted to the extent of fair value movement of the risk being hedged. Such hedges are generally for short time horizons and recognised in profit or loss within the crop cycle. Accordingly, the Company’s net exposure to commodity price risk is considered to be insignificant. SECTION: Credit Risk The Company’s deployment in debt instruments is primarily in Government securities, fixed deposits with highly rated banks and companies, bonds issued by Government institutions, public sector undertakings, mutual fund schemes of leading fund houses, and certificates of deposit issued by highly rated banks and financial institutions. Of this, investments that are held at amortised cost stood at ₹ 13802.74 Crores (2023 - ₹ 15420.01 Crores). With respect to the Company’s investing activities, debt mutual fund schemes and counterparties are shortlisted and exposure limits determined on the basis of their credit rating (by independent agencies), financial statements, and other relevant information. As these counterparties are Central / State Government, Government institutions / public sector undertakings with investment grade / sovereign credit ratings and taking into account the experience of the Company over time, the counterparty risk attached to such assets is considered to be insignificant. The Company’s customer base is large and diverse limiting the risk arising out of credit concentration. The Company’s payment terms generally range from advance (generally settled within the operating cycle) to a credit period of up to 180 days, depending upon specific circumstances and industry practices. Credit is extended in business interest in accordance with guidelines issued centrally and business-specific credit policies that are consistent with such guidelines.
Exceptions are managed and approved by appropriate authorities, after due consideration of the counterparty’s credentials and financial capacity, trade practices, and prevailing business and economic conditions. There is no significant financing component and/or remaining performance obligation in respect of its transaction with the customers for sale of goods and services. The Company’s exposure to trade receivables on the reporting date, net of expected loss provisions, stood at ₹ 3311.45 Crores (2023 - ₹ 2321.33 Crores). The Company’s historical experience of collecting receivables and the level of default indicate that credit risk is low and generally uniform across markets; consequently, trade receivables are considered to be a single class of financial assets. All overdue customer balances are evaluated taking into account the age of the dues, specific credit circumstances, the track record of the counterparty, etc. Loss allowances and impairment are recognised, where considered appropriate by responsible management. SECTION: Movement of Expected Loss Provision Particulars, Expected Loss Provision - 31st March, 2024, 31st March, 2023 - Opening Balance: 210.44, 214.05 - Add: Provisions made (net): 9.68, (0.25) - Less: Utilisation for impairment / de-recognition: 16.36, 3.36 - Closing Balance: 203.76, 210.44 SECTION: Fair Value Measurement The following table presents the fair value hierarchy of financial assets and liabilities measured at fair value on a recurring basis: Fair Value Hierarchy (Level) as at 31st March, 2024 (` in Crores), as at 31st March, 2023 (` in Crores): - A. Financial assets - a) Measured at amortised cost - i) Investment in Bonds / Debentures, Preference Shares & Government or Trust Securities: 27238.15, 8174.92 - ii) Investment in Mutual Funds: 1362.91, 337.99 - iii) Loans: 2.14, 3.40 - iv) Other Financial assets: 326.38, 3560.27 - Sub-total: 7929.58, 12076.58 - b) Measured at Fair value through OCI - i) Investment in Equity shares – Quoted: 13979.42, 1464.36 - ii) Investment in Equity shares – Unquoted: 0.05, 0.05 - iii) Investment in Mutual Funds: 14912.78, 3676.53 - Sub-total: 8892.25, 5140.94 - c) Measured at Fair value through Profit or Loss - i) Investment in Mutual Funds: 9355.06, 8711.14 - ii) Investment in Bonds / Debentures, Certificates of Deposit: 2524.47, 5360.34 - iii) Investment in Venture Capital Funds: 121.96, 119.25 - iv) Investment in Equity & Preference Shares: 39.34, 39.34 - Sub-total: 12040.83, 14230.07 - d) Derivatives measured at fair value - i) Derivative instruments not designated as hedging instruments: 2.05, 2.68 - ii) Derivative instruments designated as hedging instruments: 0.53, 29.38 - Sub-total: 2.58, 32.06 - Total financial assets: 28865.24, 31479.65 - B. Financial liabilities - a) Measured at amortised cost - i) Sales tax deferment loans: 1.38, 2.40 - ii) Lease liabilities: 261.95, 273.59 - iii) Other Financial liabilities: 89.54, 123.48 - Sub-total: 352.87, 399.47 - b) Measured at fair value - i) Derivative instruments not designated as hedging instruments: 1.43, 2.68 - ii) Derivative instruments designated as hedging instruments: 4.60, 4.34 - iii) Contingent Consideration: 12.65, 12.65 - Sub-total: 18.68, 19.67 - Total financial liabilities: 371.55, 419.14 Represents fair value of non-current financial instruments. SECTION: Fair Value Hierarchy Fair value of the financial instruments is classified in various fair value hierarchies based on the following three levels: - Level 1: Quoted prices (unadjusted) in active market or Net Asset Value (NAV) for identical assets or liabilities. - Level 2: Inputs other than quoted price included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). - Level 3: Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs). The fair value of financial instruments that are not traded in an active market is determined using market approach and valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If significant inputs required to fair value an instrument are observable, the instrument is included in Level 2. Derivatives are valued using valuation techniques with market observable inputs such as foreign exchange spot rates and forward rates at the end of the reporting period, yield curves, risk-free rate of returns, volatility, etc., as applicable. The fair value of investment in Bonds / Debentures, Certificates of Deposit, Venture Capital funds, etc., and financial liabilities, where applicable, is determined using market observable inputs such as quotes from market participants, value published by the issuer, etc.
If one or more of the significant inputs is not based on observable market data, the fair value is determined using generally accepted methodologies such as discounted cash flow analysis, with the most significant inputs being the discount rate that reflects the credit risk of the counterparty. The fair value of trade receivables, trade payables, and other current financial assets and liabilities is considered to be equal to the carrying amounts of these items due to their short-term nature. Where such items are non-current in nature, the same has been classified as Level 3 and fair value determined using discounted cash flow basis. Similarly, unquoted equity instruments where most recent information to measure fair value is insufficient, or if there is a wide range of possible fair value measurements, cost has been considered as the best estimate of fair value. There has been no change in the valuation methodology for Level 3 inputs during the year. The Company has not classified any material financial instruments under Level 3 of the fair value hierarchy. The sensitivity of change in the unobservable inputs used in fair valuation of Level 3 financial assets and liabilities does not have a significant impact on their value. There were no transfers between Level 1, Level 2, and Level 3 during the year. SECTION: INDEPENDENT AUDITOR’S REPORT SECTION: To the Members of ITC Limited SECTION: Report on the Audit of the Standalone Ind AS Financial Statements SECTION: Opinion We have audited the accompanying standalone Ind AS financial statements of ITC Limited (“the Company”), which comprise the Balance Sheet as at March 31, 2024, the Statement of Profit and Loss, including the statement of Other Comprehensive Income, the Statement of Cash Flows, and the Statement of Changes in Equity for the year then ended, and notes to the standalone Ind AS financial statements, including a summary of material accounting policies and other explanatory information. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS financial statements give the information required by the Companies Act, 2013, as amended (“the Act”) in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2024, its profit including other comprehensive income, its cash flows, and the changes in equity for the year ended on that date. SECTION: Basis for Opinion ``` ``` SECTION: Audit Overview We conducted our audit of the standalone Ind AS financial statements in accordance with the Standards on Auditing (SAs), as specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the ‘Auditor’s Responsibilities for the Audit of the Standalone Ind AS Financial Statements’ section of our report. We are independent of the Company in accordance with the ‘Code of Ethics’ issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules thereunder. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements. SECTION: Key Audit Matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the standalone Ind AS financial statements for the financial year ended March 31, 2024. These matters were addressed in the context of our audit of the standalone Ind AS financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Key Audit Matters: 1. Revenue Recognition - Our audit procedures included the following: - Assessed the Company’s revenue recognition accounting policies in line with Ind AS 115 (“Revenue from Contracts with Customers”) and tested thereof. - Evaluated the integrity of the general information and technology control environment and tested the operating effectiveness of key IT application controls over recognition of revenue. - Evaluated the design, implementation, and operating effectiveness of Company’s controls in respect of revenue recognition. 2. Impairment Assessment of Investment in WelcomHotels Lanka (Private) Limited (‘WLPL’) - WLPL is developing a mixed-use project in Colombo, Sri Lanka which includes a hotel and a residential apartment complex. At March 31, 2024, the carrying value of Company’s investment in WLPL is INR 3,479.77 crores.
The Company’s investments in subsidiaries are assessed annually by management for potential indicators of impairment. - Our audit procedures included the following: - Evaluated the key judgements/assumptions underlying management’s assessment of potential indicators of impairment. - Obtained and read the projections/estimated selling price/future cash flows along with sensitivity analysis thereof of the underlying PPE and inventory at WLPL. - Discussed and obtained from the component auditor of WLPL their assessment of potential indicators of impairment of PPE and recoverable value of inventory. - Evaluated management’s methodology, assumptions, and estimates used in these calculations. - Compared projections shared by the management in the previous year with the actuals for the year ended March 31, 2024. - Performed sensitivity analysis around the impact on future cash flows due to changes in key assumptions considered by management. - Verified the arithmetical accuracy of the future cash flow model including comparison with approved budgets. - Assessed the recoverability of investment with regard to underlying value in use of PPE and net realizable value of inventory in WLPL. SECTION: Independent Auditor’s Report We have determined that there are no other key audit matters to communicate in our report. SECTION: Information Other than the Financial Statements and Auditor’s Report Thereon The Company’s Board of Directors is responsible for the other information. The other information comprises the information included in the Annual Report, but does not include the standalone Ind AS financial statements and our auditor’s report thereon. Our opinion on the standalone Ind AS financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. SECTION: Responsibilities of Management for the Standalone Ind AS Financial Statements The Company’s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows, and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended. SECTION: Auditor’s Responsibilities for the Audit of the Standalone Ind AS Financial Statements Our objectives are to obtain reasonable assurance about whether the standalone Ind AS financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. SECTION: Report on Other Legal and Regulatory Requirements 1. As required by the Companies (Auditor’s Report) Order, 2020 (“the Order”), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the “Annexure 1” a statement on the matters specified in paragraphs 3 and 4 of the Order. 2. As required by Section 143(3) of the Act, we report, to the extent applicable, that: - We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit. - In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books. - The Balance Sheet, the Statement of Profit and Loss including the Statement of Other Comprehensive Income, the Statement of Cash Flows, and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account. - In our opinion, the aforesaid standalone Ind AS financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015, as amended. - On the basis of the written representations received from the directors as on March 31, 2024 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2024 from being appointed as a director in terms of Section 164 (2) of the Act. - With respect to the adequacy of the internal financial controls with reference to these standalone Ind AS financial statements and the operating effectiveness of such controls, refer to our separate Report in “Annexure 2” to this report.
- In our opinion, the managerial remuneration for the year ended March 31, 2024 has been paid/provided by the Company to its directors in accordance with the provisions of section 197 read with Schedule V to the Act. SECTION: Annexure 1 In terms of the information and explanations sought by us and given by the Company and the books of account and records examined by us in the normal course of audit and to the best of our knowledge and belief, we state that: 1. The Company has maintained proper records showing full particulars, including quantitative details and situation of property, plant, and equipment. 2. The inventory has been physically verified by the management during the year. In our opinion, the frequency of verification by the management is reasonable and the coverage and procedure for such verification is appropriate. ``` ``` SECTION: Financial Statements Overview As disclosed in note 8 to the financial statements, the Company has been sanctioned working capital limits in excess of ₹5 crores in aggregate from banks during the year based on the security of inventories of the Company. Based on the records examined during the audit of the financial statements, the quarterly returns/statements filed by the Company with such banks are in agreement with the books of accounts of the Company. SECTION: Loans and Advances 1. During the year, the Company has not provided loans, advances in the nature of loans, stood guarantee, or provided security to companies, firms, Limited Liability Partnerships, or any other parties. Accordingly, the requirement to report on clause 3(iii)(a) of the Order is not applicable to the Company. 2. The investments made by the Company are not prejudicial to the Company’s interest. The Company has not provided guarantees or security and has not granted loans and advances in the nature of loans to companies, firms, Limited Liability Partnerships, or any other parties, hence not commented upon. 3. The Company has not granted loans and advances in the nature of loans to companies, firms, Limited Liability Partnerships, or any other parties. Accordingly, the requirement to report on clause 3(iii)(c) to 3(iii)(f) of the Order is not applicable to the Company and hence not commented upon. SECTION: Compliance with Companies Act In our opinion, and according to the information and explanations given to us, the provisions of sections 185 and 186 of the Companies Act 2013 regarding loans to directors, including entities in which they are interested, and regarding loans and advances given, investments made, and guarantees and securities given have been complied with by the Company. SECTION: Deposits from the Public According to the information and explanations given to us, the Company has not accepted any deposit from the public nor accepted any amounts deemed to be deposits during the year within the meaning of Sections 73 and 76 of the Companies Act, 2013. In respect of unclaimed deposits, the Company has complied with the provisions of Sections 74 and 75 or any other relevant provisions of the Companies Act, 2013. We are informed by the management that no order has been passed by the Company Law Board, National Company Law Tribunal, Reserve Bank of India, or any Court or any other Tribunal. SECTION: Internal Financial Controls We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under section 148(1) of the Companies Act, 2013, related to the manufacture of specified products of the Company and are of the opinion that prima facie, the specified accounts and records have been made and maintained. We have not, however, made a detailed examination of the same. SECTION: Statutory Dues The Company is regular in depositing with appropriate authorities undisputed statutory dues including Goods and Services Tax, provident fund, employees’ state insurance, income-tax, duty of custom, duty of excise, cess, and other statutory dues applicable to it. According to the information and explanations given to us, no undisputed amounts payable in respect of Goods and Services Tax, provident fund, employees’ state insurance, income-tax, duty of custom, duty of excise, cess, and other statutory dues were outstanding at the year-end for a period of more than six months from the date they became payable.
SECTION: Disputed Dues The dues of income-tax, sales-tax, service tax, duty of custom, duty of excise, value added tax, cess, and other statutory dues that have not been deposited on account of any dispute are as follows: \| Name of the statute \| Nature of the dues \| Amount (₹ in Crores) \| Period to which the amount relates (Financial Year) \| Forums where the dispute is pending \| \|---------------------\|--------------------\|----------------------\|----------------------------------------------------\|-------------------------------------\| \| Sales Tax and Value Added Tax Laws \| Sales Tax and VAT \| 35.71 \| 1987-2020 \| Appellate Authority – up to commissioners’ / Revisional Authorities Level \| \| Sales Tax and Value Added Tax Laws \| Sales Tax and VAT \| 35.65 \| 2005-2018 \| Appellate Authority – Tribunal Level \| \| Sales Tax and Value Added Tax Laws \| Sales Tax and VAT \| 243.98 \| 1994-2017 \| High Court \| \| Customs Act, 1962 \| Customs Duty \| 1.34 \| 2012-2020 \| Appellate Authority – up to commissioners’ / Revisional Authorities Level \| \| Customs Act, 1962 \| Customs Duty \| 15.13 \| 2015-2021 \| Appellate Authority – Tribunal Level \| \| Customs Act, 1962 \| Customs Duty \| 5.22 \| 2006-2009 \| High Court \| \| Central Excise Act, 1944 \| Excise Duty \| 0.34 \| 1996-2015 \| Appellate Authority – up to commissioners’ / Revisional Authorities Level \| \| Central Excise Act, 1944 \| Excise Duty \| 55.72 \| 1986-2017 \| Appellate Authority – Tribunal Level \| \| Central Excise Act, 1944 \| Excise Duty \| 4.57 \| 2004-2012 \| High Court \| \| Finance Act, 1994 \| Service Tax \| 3.21 \| 2007-2017 \| Appellate Authority – up to commissioners’ / Revisional Authorities Level \| \| Finance Act, 1994 \| Service Tax \| 90.61 \| 2003-2017 \| Appellate Authority – Tribunal Level \| \| Finance Act, 1994 \| Service Tax \| 5.64 \| 2005-2017 \| High Court \| \| Entry Tax Laws \| Entry Tax \| 0.16 \| 2010-2017 \| Appellate Authority – up to commissioners’ / Revisional Authorities Level \| \| Entry Tax Laws \| Entry Tax \| 18.41 \| 2011-2018 \| Appellate Authority – Tribunal Level \| \| Entry Tax Laws \| Entry Tax \| 81.74 \| 1999-2018 \| High Court \| \| Luxury Tax Laws \| Luxury Tax \| 54.95 \| 1999-2004 \| Supreme Court \| \| Goods and Services Tax \| Goods and Services \| 16.03 \| 2017-2019 \| Appellate Authority – up to commissioners’ / Revisional Authorities Level \| \| Goods and Services Tax \| Goods and Services \| 2.85 \| 2017-2019 \| Appellate Authority – Tribunal Level \| \| Goods and Services Tax \| Goods and Services \| 5.50 \| 2017-2020 \| High Court \| \| Mandi Laws \| Mandi Fees & Cess \| 0.85 \| 2021-2022 \| Mandi Board \| \| Mandi Laws \| Mandi Fees & Cess \| 1.34 \| 2001-2022 \| High Court \| \| Municipal, Local Bodies and Property Tax Laws \| Municipal, Local Bodies and Taxes & Charges \| 32.19 \| 2014-2021 \| Appellate Authority – up to commissioners’ / Revisional Authorities Level / Municipal Council \| \| Municipal, Local Bodies and Property Tax Laws \| Municipal, Local Bodies and Taxes & Charges \| 2.40 \| 2004 \| Appellate Authority – Tribunal Level \| \| Municipal, Local Bodies and Property Tax Laws \| Municipal, Local Bodies and Taxes & Charges \| 32.89 \| 2001-2018 \| High Court \| \| Stamp Duty Laws \| Stamp Duty \| 4.22 \| 2004-2016 \| Registrar / Appellate Authority \| \| Stamp Duty Laws \| Stamp Duty \| 0.61 \| 1987-2008 \| High Court \| \| The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 \| Provident Fund \| 0.51 \| 2012-2020 \| Appellate Authority – Tribunal Level \| \| The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 \| Provident Fund \| 1.30 \| 1982-1990 \| High Court \| \| Employees’ State Insurance Act, 1948 \| State Insurance \| 0.08 \| 2007-2014 \| Principal Labour Court \| \| Employees’ State Insurance Act, 1948 \| State Insurance \| 0.06 \| 1995-1996 \| High Court \| Out of the total disputed dues aggregating ₹753.21 Crores as above, ₹615.39 Crores pertain to matters which have been stayed for recovery by the relevant authorities. (Net of amount paid under protest.) SECTION: Tax Assessments The Company has not surrendered or disclosed any transaction previously unrecorded in the books of account in the tax assessments under the Income Tax Act, 1961 as income during the year.
Accordingly, the requirement to report on clause 3(viii) of the Order is not applicable to the Company. SECTION: Loan Repayments 1. The Company has not defaulted in repayment of loans or other borrowings or in the payment of interest thereon to any lender. 2. The Company has not been declared a wilful defaulter by any bank, financial institution, government, or any government authority. 3. The Company did not have any term loans outstanding during the year; hence, the requirement to report on clause (ix)(c) of the Order is not applicable to the Company. 4. The Company did not raise any funds during the year; hence, the requirement to report on clause (ix)(d) of the Order is not applicable to the Company. 5. On an overall examination of the financial statements of the Company, the Company has not taken any funds from any entity or person to meet the obligations of its subsidiaries, associates, or joint ventures. Hence, the requirement to report on clause (ix)(e) of the Order is not applicable to the Company. 6. The Company has not raised loans during the year on the pledge of securities held in its subsidiaries, joint ventures, or associate companies. Hence, the requirement to report on clause (ix)(f) of the Order is not applicable to the Company. SECTION: Fund Raising 1. According to the information and explanations given by the management, the Company has not raised any money during the year by way of initial public offer/further public offer (including debt instruments); hence, reporting under clause 3(x)(a) is not applicable to the Company and hence not commented upon. 2. The Company has not made any preferential allotment or private placement of shares/fully or partially or optionally convertible debentures during the year under audit; hence, the requirement to report on clause 3(x)(b) of the Order is not applicable to the Company. SECTION: Fraud Reporting 1. No fraud by the Company or material fraud on the Company has been noticed or reported during the year. 2. During the year, no report under sub-section (12) of section 143 of the Companies Act, 2013 has been filed by the cost auditor/secretarial auditor or by us in Form ADT – 4 as prescribed under Rule 13 of Companies (Audit and Auditors) Rules, 2014 with the Central Government. 3. We have taken into consideration the whistleblower complaints received by the Company during the year while determining the nature, timing, and extent of audit procedures. SECTION: Nidhi Company Compliance In our opinion, the Company is not a nidhi company. Therefore, the provisions of clause 3(xii)(a) to (c) of the Order are not applicable to the Company and hence not commented upon. SECTION: Related Party Transactions According to the information and explanations given by the management, transactions with related parties are in compliance with section 177 and 188 of the Companies Act, 2013 where applicable, and the details have been disclosed in the notes to the financial statements, as required by the applicable accounting standards. SECTION: Internal Audit System 1. The Company has an internal audit system commensurate with the size and nature of its business. 2. The internal audit reports of the Company issued till the date of the audit report for the period under audit have been considered by us. SECTION: Non-Cash Transactions According to the information and explanations given by the management, the Company has not entered into any non-cash transactions with directors or persons connected with him as referred to in section 192 of the Companies Act, 2013. SECTION: Reserve Bank of India Act Compliance 1. According to the information and explanations given to us, the provisions of section 45-IA of the Reserve Bank of India Act, 1934 are not applicable to the Company. 2. The Company is not engaged in any Non-Banking Financial or Housing Finance activities. Accordingly, the requirement to report on clause (xvi)(b) of the Order is not applicable to the Company. 3. The Company is not a Core Investment Company as defined in the regulations made by the Reserve Bank of India. Accordingly, the requirement to report on clause 3(xvi) of the Order is not applicable to the Company. 4. There is no Core Investment Company as a part of the Group; hence, the requirement to report on clause 3(xvi)(d) of the Order is not applicable to the Company. SECTION: Cash Losses The Company has not incurred cash losses in the current year and in the immediately preceding financial year.
SECTION: Auditor Resignation There has been no resignation of the statutory auditors during the year; accordingly, the requirement to report on Clause 3(xviii) of the Order is not applicable to the Company. SECTION: Financial Viability On the basis of the financial ratios disclosed in note 28 (xvi) to the financial statements, ageing and expected dates of realization of financial assets and payment of financial liabilities, other information accompanying the financial statements, our knowledge of the Board of Directors and management plans, and based on our examination of the evidence supporting the assumptions, nothing has come to our attention which causes us to believe that any material uncertainty exists as of the date of the audit report that the Company is not capable of meeting its liabilities existing at the date of the balance sheet as and when they fall due within a period of one year from the balance sheet date. We, however, state that this is not an assurance as to the future viability of the Company. SECTION: Corporate Social Responsibility (CSR) (a) In respect of other than ongoing projects, there are no unspent amounts that are required to be transferred to a fund specified in Schedule VII of the Companies Act (the Act), in compliance with the second proviso to sub-section 5 of section 135 of the Act. This matter has been disclosed in note 28 (iii) to the financial statements. (b) There are no unspent amounts in respect of ongoing projects that are required to be transferred to a special account in compliance with the provision of sub-section (6) of section 135 of the Companies Act, 2013. This matter has been disclosed in note 28 (iii) to the financial statements. For S R B C & CO LLP Chartered Accountants ICAI Firm Registration Number: 324982E / E300003 per Arvind Sethi Partner Place of Signature: Kolkata Membership Number: 89802 Date: May 23, 2024 UDIN: 24089802BKEJFD2551 ``` ``` SECTION: Inherent Limitations of Internal Financial Controls With Reference to Standalone Financial Statements Because of the inherent limitations of internal financial controls with reference to standalone financial statements, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Projections of any evaluation of the internal financial controls to future periods are subject to the risk that the internal financial control may become inadequate due to changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. SECTION: Opinion In our opinion, the Company has, in all material respects, adequate internal financial controls with reference to standalone financial statements and such internal financial controls were operating effectively as at March 31, 2024, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note issued by the ICAI. For S R B C & CO LLP Chartered Accountants ICAI Firm Registration Number: 324982E / E300003 per Arvind Sethi Partner Place of Signature: Kolkata Membership Number: 89802 Date: May 23, 2024 UDIN: 24089802BKEJFD2551 SECTION: Guide to Subsidiaries / Joint Ventures SECTION: Subsidiaries of ITC Limited SECTION: Surya Nepal Private Limited, Nepal Shareholding: 59% held by ITC Limited. Nature of Business: Manufacture and sale of cigarettes & branded packaged food products. SECTION: Surya Nepal Ventures Private Limited Nature of Business: A wholly owned subsidiary engaged in the manufacture and sale of agarbatti. SECTION: North East Nutrients Private Limited Shareholding: 76% held by ITC Limited. Nature of Business: Manufacture and sale of packaged food products from its food processing facility based in Assam. SECTION: ITC Infotech India Limited (I3L) Shareholding: 100% held by ITC Limited. Nature of Business: Information technology services and solutions. SECTION: Subsidiaries I3L owns 100% of the shareholding of: - ITC Infotech (USA), Inc. (I2A) - ITC Infotech Limited, UK (I2B) - ITC Infotech Do Brasil LTDA., Brazil (I2B2) - ITC Infotech France SAS (I2F) - ITC Infotech GmbH, Germany (I2G) - ITC Infotech Malaysia SDN. BHD. (I2M) - ITC Infotech de México, S.A. de C.V. (I2MX)* - ITC Infotech Arabia Limited (I2AR) *Ownership includes shareholding by I2A. I2A owns 100% of the shareholding of Indivate Inc. incorporated as a New Jersey Corporation. I2A, I2B, I2B2, I2F, I2G, I2M, and I2MX are engaged in the information technology services business. I2AR has been incorporated for engaging in information technology services business and is yet to commence commercial operations. Indivate Inc.
is principally engaged in providing business consulting services and opportunity-based trading of FMCG products. SECTION: Associates SECTION: Russell Credit Limited Shareholding: 100% held by ITC Limited. Nature of Business: Investment company focused on long-term investments in strategic areas for ITC, including FMCG, Hotels & Tourism, Paper, Paperboards & Packaging, Agri Business, and Information Technology. SECTION: Greenacre Holdings Limited Nature of Business: A wholly owned subsidiary engaged in property infrastructure maintenance, engineering, procurement, construction management, and project management consultancy services. SECTION: Gold Flake Corporation Limited (GFCL) Shareholding: 100% held by ITC Limited. Nature of Business: General trading. SECTION: Joint Venture ITC Filtrona Limited (formerly known as ITC Essentra Limited), India, is a 50% joint venture of GFCL with Filtrona Products International Limited, UK. Nature of Business: Manufacture and sale of cigarette filter rods. SECTION: ITC Integrated Business Services Limited (IIBSL) Shareholding: 100% held by ITC Limited. Nature of Business: Providing support to the Business Shared Services operations of ITC Limited. SECTION: Subsidiary IIBSL owns 100% shareholding in MRR Trading & Investment Company Limited, which provides estate maintenance services. SECTION: Technico Pty Limited, Australia (Technico) Shareholding: 100% held by ITC Limited. Nature of Business: An agri-biotechnology company primarily engaged in the commercialization of seed potatoes with TECHNITUBER® technology. SECTION: Subsidiaries Technico has two wholly owned subsidiaries: - Technico Technologies Inc., Canada - Technico Asia Holdings Pty Limited, Australia Technico Asia Holdings Pty Limited has a wholly owned subsidiary, Technico Horticultural (Kunming) Company Limited, China. These companies support Technico in the production and commercialization of seed potatoes in different geographies. SECTION: Technico Agri Sciences Limited Shareholding: 100% held by ITC Limited. Nature of Business: An agri-biotechnology company primarily engaged in rapid multiplication and commercialization of seed potatoes with TECHNITUBER® technology & sourcing/supply of fruits and vegetables. SECTION: ITC IndiVision Limited Shareholding: 100% held by ITC Limited. Nature of Business: Manufacturing and sale of nicotine and nicotine derivative products from its facility in Karnataka. The company has commenced operations during the year. SECTION: WelcomHotels Lanka (Private) Limited, Sri Lanka Shareholding: 100% held by ITC Limited. Nature of Business: Owns and operates the hotel “ITC Ratnadipa”, a luxury hotel in Colombo, Sri Lanka, commissioned on 25th April, 2024. The company is also developing a super-premium residential apartment complex as part of the mixed-use project. SECTION: Srinivasa Resorts Limited Shareholding: 68% held by ITC Limited. Nature of Business: Owns the hotel “ITC Kakatiya” at Hyderabad, with operating services rendered by ITC Limited. SECTION: Fortune Park Hotels Limited Shareholding: 100% held by ITC Limited. Nature of Business: Provides operating services in the mid-market to upscale segment under its hospitality brands, currently operating 51 properties. SECTION: Bay Islands Hotels Limited Shareholding: 100% held by ITC Limited. Nature of Business: Owns the hotel “Welcomhotel Bay Island” at Port Blair, licensed to ITC Limited. SECTION: Landbase India Limited Shareholding: 100% held by ITC Limited. Nature of Business: Hospitality, management, and operation of golf courses and real estate development. Owns the Classic Golf & Country Club, a 27-hole Jack Nicklaus Signature Golf Course, and a 104-key all-suite luxury retreat “ITC Grand Bharat”, licensed to and operated by ITC Limited. SECTION: Wimco Limited Shareholding: 100% held by ITC Limited. Nature of Business: Engaged in fabrication & assembly of machinery for tube filling, cartoning, wrapping, conveyor solutions, and engineering services. SECTION: Pavan Poplar Limited & Prag Agro Farm Limited Shareholding: 100% held by ITC Limited. Nature of Business: Agro-forestry and related activities. SECTION: ITC Fibre Innovations Limited Shareholding: 100% held by ITC Limited. Nature of Business: Manufacture and sale of molded fiber products from its facility in Madhya Pradesh. The company has commenced operations during the year. SECTION: ITC Hotels Limited (ITCHL) SECTION: Shareholding 100% held by ITC Limited. SECTION: Nature of Business ITCHL was incorporated on 28th July, 2023, with the main object of ‘hotels and hospitality’ business. A Scheme of Arrangement amongst ITC Limited and ITCHL and their respective shareholders and creditors under Sections 230-232 and other applicable provisions of the Companies Act, 2013 (the ‘Scheme’), for demerger of ITC Limited’s Hotels Business into ITCHL was approved by their respective Boards on 14th August 2023, subject to necessary approvals. ITCHL will undertake the hotels and hospitality business upon the Scheme becoming effective. SECTION: Joint Venture of ITC Limited SECTION: Maharaja Heritage Resorts Limited Maharaja Heritage Resorts Limited, where ITC Limited holds 50%, is a joint venture with Jodhana Heritage Resorts Private Limited.
SECTION: Nature of Business The joint venture company currently provides Franchise & Marketing Services to 38 operational hotel properties across 14 States / Union Territories with its WelcomHeritage brand portfolio comprising “Legend Hotels”, “Heritage Hotels”, and “Nature Resorts”, offering uniquely differentiated experiences in cultural, heritage, and adventure tourism segments. SECTION: Major Associates of the Group SECTION: International Travel House Limited (ITHL) ITC Limited holds 48.96% in ITHL. SECTION: Nature of Business Air ticketing, car rentals, tourism, domestic holidays, conferences, events & exhibition management, and foreign exchange services for travelers. SECTION: Gujarat Hotels Limited ITC Limited holds 45.78% in Gujarat Hotels Limited. SECTION: Nature of Business Owns the “Welcomhotel Vadodara” in Vadodara, operated by ITC Limited under an Operating Licence Agreement. Note: The full list of the Group’s Associates appears on page 300. SECTION: Principles of Consolidation The Group’s interests in its subsidiaries, associates, and joint ventures are reflected in the Consolidated Financial Statements (CFS) in accordance with the relevant Indian Accounting Standards (Ind AS) specified under Section 133 of the Companies Act, 2013. SECTION: Subsidiaries (Ind AS 110) Line by line consolidation of the Statement of Profit and Loss and Balance Sheet is done by aggregating like items of assets, liabilities, income, and expenses. The excess/deficit of the cost to ITC Limited of its investments in its subsidiaries over its share of net worth (residual interest in the assets of the subsidiaries after deducting all its liabilities) at the date of investment in the subsidiaries is treated as goodwill/capital reserve in the CFS. The goodwill is disclosed as an asset and capital reserve as a reserve in the Consolidated Balance Sheet. Profit or loss and each component of other comprehensive income are attributed to the Group as owners and to the non-controlling interest; likewise, the non-controlling interests in the net assets of the consolidated subsidiaries are identified and presented separately within Equity in the Consolidated Balance Sheet. Inter-Company transactions within the Group (both Balance Sheet and Profit or Loss items) are eliminated for arriving at the Group CFS. CFS is prepared applying uniform accounting policies of ITC Limited to the Group companies. SECTION: Associates and Joint Ventures (Ind AS 28) An investment in associate and joint venture is initially recognized at cost on the date of the investment, inclusive of any goodwill/capital reserve embedded in the cost. Only the share of net profits/losses of associates/joint ventures is considered in the Consolidated Statement of Profit and Loss. The carrying amount of the investment in associates/joint ventures is adjusted by the share of net profits/losses in the Consolidated Balance Sheet. SECTION: Form AOC-1 (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) SECTION: Statement containing salient features of the financial statement of Subsidiaries / Associate companies / Joint Ventures SECTION: Part A: Subsidiaries (` in Crores) Name of the Subsidiary, Date since when subsidiary was acquired, Financial Year ending on, Reporting Currency, Exchange Rate on the last day of the financial year, Share Capital, Reserves & Surplus, Total Assets, Total Liabilities (excluding Total Equity), Investments (excluding Investments made in subsidiaries), Turnover, Profit / (Loss) before tax, Provision for tax, Profit / (Loss) after tax, Proposed Dividend, % of shareholding - ITC Infotech India Limited, 21-Aug-2000, 31-Mar-2024, Indian Rupee, 83.4050, 88.00, 1231.89, 2355.91, 1036.02, 464.50, 2941.96, 543.22, (161.02), 382.20, 488.40, 100.00 - ITC Infotech (USA), Inc., 17-Jun-1993, 31-Mar-2024, US Dollar, 105.0325, 151.80, 101.22, 400.31, 147.29, -, 1210.91, 43.47, (17.97), 25.50, 21.25, 100.00 - ITC Infotech Limited, 26-Jan-1993, 31-Mar-2024, British Pound, 83.4050, 7.20, 101.03, 171.71, 63.48, -, 360.97, 17.58, (1.91), 15.67, -, 100.00 - Indivate Inc., 18-Nov-2016, 31-Mar-2024, US Dollar, 16.7044, 0.83, 37.25, 56.09, 18.01, -, 113.89, 30.32, -, 30.32, -, 100.00 - ITC Infotech Do Brasil, 10-Oct-2022, 31-Mar-2024, Brazilian Real, 89.8775, 4.34, 1.20, 7.34, 1.80, -, 12.70, 1.46, (0.46), 1.00, -, 100.00 - ITC Infotech France SAS, 08-Feb-2023, 31-Mar-2024, Euro, 89.8775, 26.96, 3.53, 73.41, 42.92, -, 54.64, 5.20, (1.30), 3.90, -, 100.00 - ITC Infotech GmbH, 10-Mar-2023, 31-Mar-2024, Euro, 17.6225, 25.62, 25.20, 109.78, 58.96, -, 128.25, 7.96, 17.24, 25.20, -, 100.00 - ITC Infotech Malaysia SDN. BHD., 03-Feb-2023, 31-Mar-2024, Malaysian Ringgit, 5.0324, 14.10, 0.65, 20.40, 5.65, -, 14.40, 0.94, (0.28), 0.66, -, 100.00 - ITC Infotech S.A.
de C.V., 17-Apr-2023, 31-Mar-2024, Mexican Peso, 0.6250, 18.37, 0.38, 19.34, 0.59, -, 3.05, 0.28, 0.10, 698.85, -, 59.00 - ITC Infotech Private Limited, 20-Aug-2002, 13-Mar-2024, Nepalese Rupee, 0.6250, 126.00, 658.58, 1161.37, 376.79, -, 3172.75, 1007.61, (308.76), 698.85, -, 59.00 - ITC Infotech Limited, 03-Jul-2023, 13-Mar-2024, Nepalese Rupee, -, 2.56, (0.28), 7.23, 4.95, -, 0.09, (0.35), 0.07, (0.28), -, 59.00 SECTION: Notes: i) Turnover includes Other Income and Other Operating Revenue. Profit / (Loss) figures do not include Other Comprehensive Income. ii) ITC Infotech Arabia Limited, a subsidiary of ITC Infotech India Limited, was incorporated during the year on 17th December, 2023, and is yet to commence commercial operations. There have been no transactions in the company during the period ended 31st March, 2024, and hence the financial statements have not been prepared by the said subsidiary. SECTION: Part A: Subsidiaries (Contd.) (` in Crores) Name of the Subsidiary, Date since when subsidiary was acquired, Financial Year ending on, Reporting Currency, Exchange Rate on the last day of the financial year, Share Capital, Reserves & Surplus, Total Assets, Total Liabilities (excluding Total Equity), Investments (excluding Investments made in subsidiaries), Turnover, Profit / (Loss) before tax, Provision for tax, Profit / (Loss) after tax, Proposed Dividend, % of shareholding - Technico, 17-Aug-2007, 31-Mar-2024, Australian Dollar, 54.1125, 105.46, 37.96, 6.67, 19.94, 21.94, 24.00, 0.45, 317.00, 0.12, 2910.98, 646.48 - Technico, 17-Aug-2007, 31-Mar-2024, Indian Rupee, -, -, -, -, -, -, -, -, -, -, - - Technico, 17-Aug-2007, 31-Mar-2024, Canadian Dollar, 61.2675, -, -, -, -, -, -, -, -, -, - - Technico, 17-Aug-2007, 31-Mar-2024, Australian Dollar, 54.1125, -, -, -, -, -, -, -, -, -, - - Technico, 17-Aug-2007, 31-Mar-2024, Chinese Yuan, 11.5372, -, -, -, -, -, -, -, -, -, - - Srinivasa, 06-Feb-1995, 31-Mar-2024, Indian Rupee, -, -, -, -, -, -, -, -, -, - - Fortune, 06-Mar-1996, 31-Mar-2024, Indian Rupee, -, -, -, -, -, -, -, -, -, - - Landbase, 09-Sep-2000, 31-Mar-2024, Indian Rupee, -, -, -, -, -, -, -, -, -, - - Bay Islands, 08-Mar-1999, 31-Mar-2024, Indian Rupee, -, -, -, -, -, -, -, -, -, - - Welcom Hotels, 04-May-2012, 31-Mar-2024, Sri Lankan Rupee, -, -, -, -, -, -, -, -, -, - - Russell, 26-Sep-1997, 31-Mar-2024, Indian Rupee, -, -, -, -, -, -, -, -, -, - ``` ``` SECTION: Financial Overview SECTION: Reserves & Surplus - (32.00), 119.14, 0.02, (12.05), 2.39, 79.90, 34.52, (53.94), 24.29, 8.99, 803.33 SECTION: Total Assets - 78.58, 356.06, 7.14, 7.89, 24.72, 132.52, 53.73, 312.65, 25.12, 3081.40, 1502.45 SECTION: Total Liabilities (excluding Total Equity) - 5.12, 198.96, 0.45, -, 0.39, 28.62, 18.76, 49.59, 0.71, 161.43, 52.64 SECTION: Investments (excluding Investments made in subsidiaries) - -, 70.89, -, -, -, 45.45, 23.58, 27.82, 3.87, -, 1359.88 SECTION: Turnover - 11.67, 331.96, 5.58, 2.66, 5.60, 74.72, 54.92, 44.01, 3.79, 8.12, 60.91 SECTION: Profit / (Loss) before tax - 6.67, 50.13, 4.66, 2.66, 1.91, 11.73, 13.46, 10.00, 3.61, 1.65, 48.78 SECTION: Provision for tax - (2.27), (12.32), -, -, -, (3.63), (2.24), -, (0.91), -, (9.39) SECTION: Profit / (Loss) after tax - 4.40, 37.81, 4.66, 2.66, 1.91, 8.10, 11.22, 10.00, 2.70, 1.65, 39.39 SECTION: Proposed Dividend - -, 24.68, -, -, 2.72, -, 0.68, -, 0.12, -, 19.39 SECTION: % of shareholding - 100.00, 100.00, 100.00, 100.00, 100.00, 68.00, 100.00, 100.00, 100.00, 100.00 SECTION: Notes 1. Turnover includes Other Income and Other Operating Revenue. Profit / (Loss) figures do not include Other Comprehensive Income. 2. WelcomHotels Lanka (Private) Limited is yet to commence commercial operations.
SECTION: Part A: Subsidiaries - Name of the Subsidiary - Greenacre Holdings Limited - Wimco Corporation - Gold Flake Integrated Trading & Business Limited - ITC MRR Limited - North East Nutrients Private Limited - Prag Agro Limited - Pavan ITC Limited - ITC Fibre Limited - ITC Hotels Limited - Details: - Date since when subsidiary was acquired: - 09-Nov-1994, 01-Jul-2005, 29-Jan-1982, 17-May-2012, 23-Dec-1998, 06-Feb-2014, 01-Jul-2005, 01-Jul-2005, 29-Jul-2020, 03-Mar-2023 - Financial Year ending on: - 31-Mar-2024 (for all subsidiaries) - Reporting Currency: - Indian Rupee - Share Capital: - 42.06, 18.51, 16.00, 7.50, 0.05, 73.00, 1.28, 5.51, 120.00, 200.00, 83.00 - Reserves & Surplus: - 15.43, (23.56), 15.09, 1.62, (0.02), 44.36, (0.37), (5.24), (35.36), (3.56), 1.11 - Total Assets: - 75.02, 2.41, 33.65, 11.75, 0.05, 124.92, 0.95, 0.31, 409.91, 229.19, 86.38 - Total Liabilities (excluding Total Equity): - 17.53, 7.46, 2.56, 2.63, 0.02, 7.56, 0.04, 0.04, 325.27, 32.75, 2.27 - Investments (excluding Investments made in subsidiaries): - 38.73, 0.50, 11.83, 4.37, –, 26.65, –, –, 12.28, 35.96, – SECTION: Part B: Associates and Joint Ventures - Name of Associates / Joint Ventures - Logix ITC - Maharaja International - Russell Gujarat Hotels - Divya ATC Limited - Antrang Delectable - Mother Sproutlife - Filtrona Heritage - Travel Investments Limited - Management Finance Technologies - Sparsh Baby Foods Private Limited - Private Limited - Details: - Latest audited Balance Sheet Date: - 31-Mar-2024 (for all) - Date on which the Associate or Joint Venture was associated or acquired: - 27-Sep-2011, 30-Jun-1994, 02-Jul-1997, 21-Mar-1982, 14-May-1988, 12-Sep-1986, 23-Nov-2007, 18-Jan-1995, 21-Jan-2008, 17-Sep-2020, 27-Oct-2022 - Shares of Associate / Joint Venture held by the Company on the year end: - 77, 66,913, 22, 50,000, 1,80,000, 39,14,233, 42,75,435, 17,33,907, 41,82,915, 1,94,775, 43,24,634, 10,145, 3,937 - Amount of Investment in Associate / Joint Venture: - 126.94, 82.33, 47.81, 21.37, 7.89, 7.98, 5.20, 8.88, 40.20, 201.13, - Extent of Holding %: - 27.90, 50.00, 50.00, 48.96, 25.43, 45.78, 33.33, 47.50, 33.33, 39.32, 26.50 - Description of how there is significant influence: - Joint Venture, Consolidated (for all) - Reason why the Associate / Joint Venture is not consolidated: - Consolidated (for all) - Net worth attributable to Shareholding as per latest audited Balance Sheet: - 1.48, 126.53, -69.75, 48.41, 20.21, 6.82, 7.77, 5.11, 1.25, 0.02, 24.16 - Profit / (Loss) for the year: - 0.21, 80.80, 0.93, 22.50, 4.68, 4.72, 0.55, 1.00, 0.46, (3.00), (11.49) - Considered in Consolidation: - 0.06, 40.40, -11.02, 1.19, 2.17, 0.18, 0.47, 0.15, -1.11, (3.06), (23.86) - Not considered in Consolidation: - 0.15, 40.40, 0.93, 11.48, 3.49, 2.55, 0.37, 0.53, 0.31, (1.89), (8.43) SECTION: Notes - i) ITC Hotels Limited is yet to commence commercial operations. - ii) No subsidiary was liquidated or sold during the year. - iii) Turnover includes Other Income and Other Operating Revenue. Profit / (Loss) figures do not include Other Comprehensive Income. SECTION: Consolidated Financial Statements - Balance Sheet - Statement of Profit and Loss - Statement of Changes in Equity - Statement of Cash Flows - Notes to the Consolidated Financial Statements - Independent Auditor’s Report ``` ``` SECTION: Total Equity and Liabilities Total Equity and Liabilities: 91826.16 (Previous Year: 85882.98) The accompanying notes 1 to 32 are an integral part of the Consolidated Financial Statements. On behalf of the Board In terms of our report attached For S R B C & CO LLP S. PURI, Chairman & Managing Director (DIN: 00280529) S.
DUTTA, Director & Chief Financial Officer (DIN: 01804345) Arvind Sethi, Partner (Membership No.: 89802) Kolkata, May 23, 2024 SECTION: Consolidated Statement of Profit and Loss for the year ended 31st March, 2024 \| For the year ended \| Note \| 31st March, 2024 (` in Crores) \| 31st March, 2023 (` in Crores) \| \|--------------------\|------\|----------------------------------\|----------------------------------\| \| I Revenue From Operations \| 22A \| 76840.49 \| 76518.21 \| \| II Other Income \| 23 \| 2727.84 \| 1980.49 \| \| III Total Income (I+II) \| \| 79568.33 \| 78498.70 \| \| IV EXPENSES \| \| \| \| \| Cost of materials consumed \| \| 21772.58 \| 20275.99 \| \| Purchases of Stock-in-Trade and Biological Assets \| \| 6063.32 \| 9088.37 \| \| Changes in inventories of finished goods, Stock-in-Trade, work-in-progress, intermediates and Biological Assets \| 24 \| (588.69) \| (358.59) \| \| Excise duty \| \| 5959.49 \| 5581.36 \| \| Employee benefits expense \| 25 \| 6134.35 \| 5736.22 \| \| Finance costs \| 26 \| 45.96 \| 43.20 \| \| Depreciation and amortization expense \| \| 1816.39 \| 1809.01 \| \| Other expenses \| 27 \| 11245.09 \| 10529.93 \| \| Total expenses (IV) \| \| 52448.49 \| 52705.49 \| \| V Share of profit / (loss) of Associates and Joint Ventures \| \| 27.61 \| 49.04 \| \| VI Profit before exceptional items and tax (III-IV+V) \| \| 27147.45 \| 25842.25 \| \| VII Exceptional Items \| 29(i) \| (7.57) \| 72.87 \| \| VIII Profit before tax (VI+VII) \| \| 27139.88 \| 25915.12 \| \| IX Tax expense: \| \| \| \| \| Current Tax \| 28 \| 6165.27 \| 6450.90 \| \| Deferred Tax \| 28 \| 223.25 \| (12.50) \| \| X Profit for the year (VIII-IX) \| \| 20751.36 \| 19476.72 \| \| Other Comprehensive Income \| \| \| \| \| A (i) Items that will not be reclassified to profit or loss: \| \| \| \| \| – Remeasurements of the defined benefit plans \| 29(vi) \| (20.74) \| (24.06) \| \| – Equity instruments through other comprehensive income \| \| 2957.51 \| 108.65 \| \| – Effective portion of gains / (losses) on designated portion of hedging instruments in a cash flow hedge \| \| (10.46) \| 21.22 \| \| – Share of other comprehensive income in Associates and Joint Ventures \| \| 15.21 \| 3.94 \| \| (ii) Income tax relating to items that will not be reclassified to profit or loss \| 28 \| (268.53) \| 0.38 \| \| B (i) Items that will be reclassified to profit or loss: \| \| \| \| \| – Exchange differences in translating the financial statements of foreign operations \| \| 256.53 \| 46.12 \| \| – Debt instruments through other comprehensive income \| \| 18.00 \| (34.76) \| \| – Effective portion of gains / (losses) on designated portion of hedging instruments in a cash flow hedge \| \| 16.93 \| (52.41) \| \| (ii) Income tax relating to items that will be reclassified to profit or loss \| 28 \| (8.79) \| 21.94 \| \| XI Other Comprehensive Income [A (i+ii)+B (i+ii)] \| \| 2955.66 \| 91.02 \| \| XII Total Comprehensive Income for the year (X+XI) \| \| 23707.02 \| 19567.74 \| \| Profit for the year Attributable to: \| \| \| \| \| Owners of the parent \| \| 20458.78 \| 19191.66 \| \| Non-controlling interests \| \| 292.58 \| 285.06 \| \| Other Comprehensive Income Attributable to: \| \| \| \| \| Owners of the parent \| \| 2955.66 \| 91.76 \| \| Non-controlling interests \| \| (0.74) \| \| \| Total Comprehensive Income for the year Attributable to: \| \| \| \| \| Owners of the parent \| \| 23414.44 \| 19283.42 \| \| Non-controlling interests \| \| 292.58 \| 284.32 \| \| XIII Earnings per equity share (Face Value ` 1.00 each): \| 29(ii) \| \| \| \| (1) Basic (in `) \| \| 16.42 \| 15.50 \| \| (2) Diluted (in `) \| \| 16.38 \| 15.46 \| The accompanying notes 1 to 32 are an integral part of the Consolidated Financial Statements. On behalf of the Board In terms of our report attached For S R B C & CO LLP S. PURI, Chairman & Managing Director (DIN: 00280529) S. DUTTA, Director & Chief Financial Officer (DIN: 01804345) Arvind Sethi, Partner (Membership No.: 89802) Kolkata, May 23, 2024 SECTION: Consolidated Statement of Changes in Equity for the year ended 31st March, 2024 **SECTION: A.
Equity Share Capital (` in Crores) \| Balance at the beginning of the reporting year \| Changes in equity share capital during the year \| Balance at the end of the reporting year \| \|------------------------------------------------\|------------------------------------------------\|------------------------------------------\| \| 1242.80 \| 5.67 \| 1248.47 \| \| 1232.33 \| 10.48 \| 1242.80 \| SECTION: B. Other Equity (` in Crores) \| Reserves and Surplus \| Items of other comprehensive income \| Attributable to owners of the parent \| Non-controlling interests \| \|----------------------\|-------------------------------------\|--------------------------------------\|--------------------------\| \| Special Reserve \| Exchange differences on translating the financial statements \| Capital Reserve \| Retained Earnings \| \| 5.46 \| 13036.79 \| 72.67 \| 17672.57 \| \| Balance as at 1st April, 2023 \| 35340.23 \| (23.23) \| 1004.46 \| \| Profit for the year \| – \| – \| 20458.78 \| \| Other Comprehensive Income (net of tax) \| – \| – \| (15.95) \| \| Total Comprehensive Income for the year \| – \| – \| 20442.83 \| \| Issue of equity shares under ITC Employee Stock Option Schemes \| – \| 1437.16 \| – \| \| Dividend \| – \| – \| – \| \| Final Dividend (2022-23 - ` 6.75 per share) \| – \| (8388.91) \| (293.14) \| \| Special Dividend (2022-23 - ` 2.75 per share) \| – \| (3417.70) \| – \| \| Interim Dividend (2023-24 - ` 6.25 per share) \| – \| (7799.45) \| – \| \| Transfer from retained earnings \| – \| 7.88 \| – \| \| Balance as at 31st March, 2024 \| 5.46 \| 14813.95 \| 36172.49 \| SECTION: Consolidated Statement of Cash Flows for the year ended 31st March, 2024 \| For the year ended 31st March, 2024 \| For the year ended 31st March, 2023 \| \|--------------------------------------\|--------------------------------------\| \| A. Cash Flow from Operating Activities \| \| \| PROFIT BEFORE TAX \| 27139.88 \| 25915.12 \| \| ADJUSTMENTS FOR: \| \| \| Depreciation and amortization expense \| 1816.39 \| 1809.01 \| \| Share based payments to employees \| 107.30 \| 60.41 \| \| Finance costs \| 45.96 \| 43.20 \| \| Interest Income \| (1710.51) \| (1534.00) \| \| Dividend Income \| (11.13) \| (0.02) \| \| (Gain) / Loss on sale of property, plant and equipment, lease termination - Net \| (57.04) \| 4.40 \| \| Inventory write-offs / write-downs (net of reversals) \| 156.12 \| 157.33 \| \| Doubtful and bad debts \| 14.81 \| 5.96 \| \| Doubtful and bad advances, loans and deposits \| 24.61 \| 0.75 \| \| Impairment of investment in joint venture \| 0.06 \| 1.42 \| \| Gain recognised on divestment of shares held in joint venture \| (9.84) \| – \| \| Share of (profit) / loss of associates and joint ventures \| (27.61) \| (49.04) \| \| Net gain arising on financial instruments measured at amortised cost / mandatorily measured at fair value through profit or loss \| (840.17) \| (393.97) \| \| Foreign currency translations and transactions - Net \| (13.38) \| 31.37 \| \| OPERATING PROFIT BEFORE WORKING CAPITAL CHANGES \| 26635.45 \| 26051.94 \| \| ADJUSTMENTS FOR: \| \| \| Trade receivables, advances and other assets \| (933.64) \| (884.21) \| \| Inventories and biological assets other than bearer plants \| (2544.87) \| (1097.87) \| \| Trade payables, other liabilities and provisions \| 141.48 \| (3337.03) \| \| CASH GENERATED FROM OPERATIONS \| 23298.42 \| 25127.79 \| \| Income tax paid (net of refunds) \| (6119.56) \| (6250.24) \| \| NET CASH FROM OPERATING ACTIVITIES \| 17178.86 \| 18877.55 \| SECTION: B. Cash Flow from Investing Activities** \| Purchase of property, plant and equipment, intangibles, ROU asset, etc.
\| (3562.53) \| (2742.99) \| \| Sale of property, plant and equipment \| 107.48 \| 49.17 \| \| Purchase of current investments \| (72237.17) \| (78483.49) \| \| Sale / redemption of current investments \| 75201.73 \| 73172.80 \| \| Payment towards contingent purchase consideration \| – \| (63.75) \| \| Investment in associates* \| (65.04) \| (1.88) \| \| Purchase of non-current investments* \| (2870.12) \| (2448.96) \| \| Sale / redemption of non-current investments \| 2627.78 \| 4057.60 \| \| Advance received towards divestment of shares held in joint venture [Refer Note 29(viii)] \| – \| 56.00 \| \| Dividend received from associates and joint venture \| 24.52 \| 18.56 \| \| Dividend received from others \| 11.13 \| 0.02 \| \| Interest received \| 1138.35 \| 1323.74 \| \| Investment in bank deposits (original maturity more than 3 months) \| (4612.10) \| (8904.33) \| \| Redemption / maturity of bank deposits (original maturity more than 3 months) \| 5800.00 \| 6754.44 \| \| Investment in deposit with housing finance company \| – \| (3520.00) \| \| Redemption / maturity of deposit with housing finance company \| – \| 5000.00 \| \| Loans given \| (12.55) \| (8.56) \| \| Loans realised \| 11.29 \| 9.34 \| \| NET CASH FROM / (USED IN) INVESTING ACTIVITIES \| 1562.77 \| (5732.29) \| SECTION: C. Cash Flow from Financing Activities \| Proceeds from issue of share capital \| 1442.83 \| 2477.39 \| \| Proceeds from current borrowings \| 8.00 \| – \| \| Repayment of non-current borrowings \| (1.57) \| (0.73) \| \| Principal payment of lease liabilities \| (66.89) \| (59.11) \| \| Interest paid \| (46.25) \| (41.42) \| \| Net increase in statutory restricted accounts balances \| 12.12 \| 14.94 \| The accompanying notes 1 to 32 are an integral part of the Consolidated Financial Statements. On behalf of the Board In terms of our report attached S. PURI, Chairman & Managing Director For S R B C & CO LLP (DIN: 00280529) Chartered Accountants Firm Registration Number: 324982E / E300003 S. DUTTA, Director & Chief Financial Officer (DIN: 01804345) Arvind Sethi, Partner R. K. SINGHI, Company Secretary (Membership No.: 89802, FCS 3770) Kolkata, May 23, 2024 ``` ``` SECTION: Cash Flow Statement Dividend paid: 19899.20, 15417.53 Dividend distribution tax refund received: 20.43 NET CASH USED IN FINANCING ACTIVITIES: (18550.96), (13006.03) NET INCREASE IN CASH AND CASH EQUIVALENTS: 190.67, 139.23 OPENING CASH AND CASH EQUIVALENTS: 405.91, 266.68 CLOSING CASH AND CASH EQUIVALENTS: 596.58, 405.91 Also refer Note 29(x) SECTION: Notes 1. The above Statement of Cash Flows has been prepared under the “Indirect Method” as set out in Ind AS - 7 “Statement of Cash Flows”. 2. CASH AND CASH EQUIVALENTS: As at 31st March, 2024, As at 31st March, 2023 Cash and cash equivalents as above: 596.58, 405.91 Unrealised gain / (loss) on foreign currency cash and cash equivalents: 29.31, 23.48 Cash credit facilities (Note 20): –, 33.96 Cash and cash equivalents (Note 13): 625.89, 463.35 3. Net Cash Flow from Operating Activities includes an amount of ` 450.50 Crores (2023 - ` 341.23 Crores) spent towards Corporate Social Responsibility. 4. Disclosure of change arising from financing activities in respect of lease liabilities - Refer Note 17A. The accompanying notes 1 to 32 are an integral part of the Consolidated Financial Statements. SECTION: Group Information ITC Limited (the ‘Holding Company’) [CIN: L16005WB1910PLC001985] is a public limited company domiciled in India with its registered office located at Virginia House, 37 Jawaharlal Nehru Road, Kolkata 700071. The Holding Company’s shares are listed on the National Stock Exchange of India Limited, BSE Limited and The Calcutta Stock Exchange Limited. The Holding Company and its subsidiaries (together referred to as the ‘Group’) has presence in multiple businesses spanning Fast-Moving Consumer Goods (Cigarettes & Cigars, Foods, Personal Care Products, Education & Stationery Products, Safety Matches and Agarbattis), Hotels, Paperboards, Paper and Packaging, Agri Business and Information Technology. SECTION: 1. Material Accounting Policies SECTION: Statement of Compliance These financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 and amendments thereto. The financial statements have also been prepared in accordance with the relevant presentation requirements of the Companies Act, 2013. The Group adopted Ind AS from 1st April, 2016.
SECTION: Basis of Preparation The financial statements are prepared in accordance with the historical cost convention, except for certain items that are measured at amortised cost or fair value, as explained in the accounting policies. 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, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Group takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes in these consolidated financial statements is determined on such a basis, except for share-based payment transactions that are within the scope of Ind AS 102 – Share-based Payment, leasing transactions that are within the scope of Ind AS 116 – Leases and measurements that have some similarities to fair value but are not fair value, such as net realisable value in Ind AS 2 – Inventories or value in use in Ind AS 36 – Impairment of Assets. The preparation of financial statements in conformity with Ind AS requires management to make judgements, estimates and assumptions that affect the application of the accounting policies and the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the year. Actual results could differ from those estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period; they are recognised in the period of the revision and future periods if the revision affects both current and future periods. SECTION: Basis of Consolidation The Consolidated Financial Statements (CFS) include the financial statements of the Company and its subsidiaries together with the share of the total comprehensive income of joint ventures and associates. Subsidiaries are entities controlled by the Group. Associates are entities over which the Group exercises significant influence but does not control. Joint Ventures (“JV”) are entities in which the Group has the ability to exercise control jointly with one or more uncontrolled entities and the parties have proportionate interests in the assets and liabilities of the JV entity. Control, significant influence and joint control is assessed annually with reference to the voting power (usually arising from equity shareholdings and potential voting rights) and other rights (usually contractual) enjoyed by the Group in its capacity as an investor that provides it the power and consequential ability to direct the investee’s activities and significantly affect the Group’s returns from its investment. Such assessment requires the exercise of judgement and is disclosed by way of a note to the Financial Statements. The Group is considered not to be in control of entities where it is unclear as to whether it enjoys such power over the investee. The assets, liabilities, income and expenses of subsidiaries are aggregated and consolidated, line by line, from the date control is acquired by any Group entity to the date it ceases. Profit or loss and each component of other comprehensive income are attributed to the Group as owners and to the non-controlling interests. The Group presents the non-controlling interests in the Balance Sheet within equity, separately from the equity of the Group as owners. The excess of the Group’s investment in a subsidiary over its share in the net worth of such subsidiary on the date control is acquired is treated as goodwill while a deficit is considered as a capital reserve in the CFS. SECTION: Notes to the Consolidated Financial Statements SECTION: 1. Material Accounting Policies (Contd.) An investment in an associate or a JV is initially recognised at cost on the date of the investment, and inclusive of any goodwill/capital reserve embedded in the cost, in the Balance Sheet. The proportionate share of the Group in the net profits/losses as also in the other comprehensive income is recognised in the Statement of Profit and Loss and the carrying value of the investment is adjusted by a like amount (referred as ‘equity method’). All intragroup assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Group are eliminated in full on consolidation.
While preparing CFS, appropriate adjustments are made to subsidiaries/associates/JVs financial statements to ensure conformity with the Group’s accounting policies. SECTION: Operating Cycle All assets and liabilities have been classified as current or non-current as per the Group’s normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013 and Ind AS 1 – Presentation of Financial Statements based on the nature of products and 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. SECTION: Property, Plant and Equipment Property, plant and equipment (PP&E) are stated at cost of acquisition or construction less accumulated depreciation and accumulated impairment, if any. For this purpose, cost includes deemed cost which represents the carrying value of PP&E recognised as at 1st April, 2015 measured as per the previous Generally Accepted Accounting Principles (GAAP). Cost is inclusive of inward freight, duties and taxes and incidental expenses related to acquisition. In respect of major projects involving construction, related pre-operational expenses form part of the value of assets capitalised. Expenses capitalised also include applicable borrowing costs for qualifying assets, if any. All upgradation/enhancements are charged off as revenue expenditure unless they bring similar significant additional benefits. An item of PP&E is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of PP&E is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in the Statement of Profit and Loss. Depreciation of these assets commences when the assets are ready for their intended use, which is generally on commissioning. Items of PP&E are depreciated in a manner that amortizes the cost (or other amount substituted for cost) of the assets after commissioning, less its residual value, over their useful lives as specified in Schedule II of the Companies Act, 2013 on a straight-line basis. Land is not depreciated. SECTION: The estimated useful lives of PP&E of the Group are as follows: - Buildings: 30-60 Years - Leasehold Improvement: Shorter of lease period or estimated useful lives - Plant and Equipment: 3-25 Years - Furniture and Fixtures: 8-10 Years - Vehicles: 8-10 Years - Office Equipment: 5 Years PP&E’s residual values, useful lives and method of depreciation are reviewed at each Balance Sheet date and changes, if any, are treated as changes in accounting estimate. SECTION: Goodwill and Other Intangible Assets SECTION: Goodwill Goodwill arising on Business Combination is carried at cost less any accumulated impairment losses. The Group also presents the excess of the Group’s investment in a subsidiary over its share in the net worth of such subsidiary on the date control is acquired as goodwill arising on consolidation. Goodwill is annually tested for impairment. Impairment loss, if any, to the extent the carrying amount exceeds the recoverable amount is charged off to the Statement of Profit and Loss as it arises and is not reversed. For impairment testing, goodwill is allocated to Cash Generating Unit (CGU) or group of CGUs to which it relates, which is not larger than an operating segment, and is monitored for internal management purposes. On disposal of the CGU or group of CGUs, attributable amount of goodwill is included in the determination of the profit or loss recognised in the Statement of Profit and Loss. SECTION: Other Intangible Assets Other Intangible Assets that the Group controls and from which it expects future economic benefits, are capitalised upon acquisition and measured initially: 1. For assets acquired in a business combination, at fair value on the date of acquisition. 2. For separately acquired assets, at cost comprising the purchase price (including import duties and non-refundable taxes) and directly attributable costs to prepare the asset for its intended use. Internally generated assets for which the cost is clearly identifiable are capitalised at cost. Research expenditure is recognised as an expense when it is incurred. Development costs are capitalised only after the technical and commercial feasibility of the asset for sale or use has been established. Thereafter, all directly attributable expenditure incurred to prepare the asset for its intended use are recognised as the cost of such assets. Internally generated brands, websites and customer lists are not recognised as intangible assets.
The carrying value of intangible assets includes deemed cost which represents the carrying value of intangible assets recognised as at 1st April, 2015 measured as per the previous GAAP. After initial recognition, an intangible asset is carried at its cost less accumulated amortization and/or impairment losses. The useful life of an intangible asset is considered finite where the rights to such assets are limited to a specified period of time by contract or law (e.g. patents, licences, trademarks, franchise and servicing rights) or the likelihood of technical, technological obsolescence (e.g. computer software, design, prototypes) or commercial obsolescence (e.g. lesser known brands are those to which adequate marketing support may not be provided). If there are no such limitations, the useful life is taken to be indefinite. Intangible assets that have finite lives are amortized over their estimated useful lives by the straight-line method unless it is practical to reliably determine the pattern of benefits arising from the asset. An intangible asset with an indefinite useful life is not amortized. However, it is annually tested for impairment. Amortization expenses and impairment losses and reversal of impairment losses are included in the ‘Depreciation and amortization expense’ in the Statement of Profit and Loss. SECTION: The estimated useful lives of intangible assets of the Group with finite lives are as follows: - Trademarks / Know How, Business and Commercial Rights: 10 Years (unless shorter useful life is required based on contractual or legal terms) - Computer Software: 5 Years - Customer Relationships: 8 Years The useful lives of intangible assets are reviewed annually to determine if a reset of such useful life is required for assets with finite lives and to confirm that business circumstances continue to support an indefinite useful life assessment for assets so classified. Based on such review, the useful life may change or the useful life assessment may change from indefinite to finite. The impact of such changes is accounted for as a change in accounting estimate. SECTION: Investment Property Properties that are held for long-term rental yields and/or for capital appreciation are classified as investment properties. Investment properties are stated at cost of acquisition or construction less accumulated depreciation and impairment, if any. Depreciation is recognised using the straight-line method so as to amortize the cost of investment properties over their useful lives as specified in Schedule II of the Companies Act, 2013. Freehold land and properties under construction are not depreciated. Transfers to, or from, investment properties are made at the carrying amount when and only when there is a change in use. An item of investment property is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of investment property is determined as the difference between the sales proceeds and the carrying amount of the property and is recognised in the Statement of Profit and Loss. Income received from investment property is recognised in the Statement of Profit and Loss on a straight-line basis over the term of the lease. SECTION: Impairment of Assets Impairment loss, if any, is provided to the extent that the carrying amount of assets or cash generating units exceeds their recoverable amount. Recoverable amount is higher of an asset’s fair value less costs of disposal and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset or cash generating unit and from its disposal at the end of its useful life. Impairment losses recognised in prior years are reversed when there is an indication that the impairment losses recognised no longer exist or have decreased. Such reversals are recognised as an increase in carrying amounts of assets to the extent that it does not exceed the carrying amounts that would have been determined (net of amortization or depreciation) had no impairment loss been recognised in previous years. SECTION: Inventories Inventories are stated at lower of cost and net realisable value. The cost is calculated on weighted average method. Cost comprises expenditure incurred in the normal course of business in bringing such inventories to their present location and condition and includes, where applicable, appropriate overheads based on normal level of activity. Net realisable value is the estimated selling price less estimated costs for completion and sale.
Obsolete, slow moving and defective inventories are identified from time to time and, where necessary, a provision is made for such inventories. SECTION: Foreign Currency Transactions The presentation currency of the Group is Indian Rupee. Transactions in foreign currency are accounted for at the exchange rate prevailing on the transaction date. Gains/losses arising on settlement as also on translation of monetary items are recognised in the Statement of Profit and Loss. Exchange differences arising on monetary items that, in substance, form part of the Group’s net investment in a foreign operation (having a functional currency other than Indian Rupee) are recognised in other comprehensive income and accumulated in foreign currency translation reserve. For the preparation of the consolidated financial statements: (a) assets and liabilities of foreign operations, together with goodwill and fair value adjustments assumed on acquisition thereof, are translated to Indian Rupees at exchange rates prevailing at the reporting period end; (b) income and expense items are translated at the average exchange rates prevailing during the period; when exchange rates fluctuate significantly the rates prevailing on the transaction date are used. Differences arising on such translation are recognised in other comprehensive income and accumulated in foreign currency translation reserve and attributed to non-controlling interests proportionately. On the disposal of a foreign operation, all of the exchange differences accumulated in equity in respect of that operation attributable to the owners of the Group is reclassified to the Statement of Profit and Loss. In relation to a partial disposal, that does not result in losing control over the subsidiary, the proportionate exchange differences accumulated in equity is reclassified to the Statement of Profit and Loss. SECTION: Derivatives and Hedge Accounting Derivatives are initially recognised at fair value and are subsequently remeasured to their fair value at the end of each reporting period. The resulting gains/losses are recognised in the Statement of Profit and Loss immediately unless the derivative is designated and effective as a hedging instrument, in which case the resulting gain/loss is recognised as per the hedge accounting principles stated below. The Group complies with the principles of hedge accounting where derivative contracts and/or non-derivative financial assets/liabilities that are permitted under applicable accounting standards are designated as hedging instruments. At the inception of the hedge relationship, the Group documents the relationship between the hedging instrument and the hedged item, along with the risk management objectives and its strategy for undertaking hedge transaction, which can be a fair value hedge or a cash flow hedge. SECTION: (i) Fair value hedges ``` ``` SECTION: Changes in Fair Value of Hedging Instruments Changes in fair value of the designated portion of hedging instruments that qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk. Such fair value changes are recognised in the line item relating to the hedged item in the Statement of Profit and Loss. Hedge accounting is discontinued when the hedging instrument is derecognised, expires or is sold, terminated, or exercised, or when it no longer qualifies for hedge accounting. The fair value adjustment to the carrying amount of the hedged item arising from the hedged risk is amortised to profit or loss from that date. SECTION: Cash Flow Hedges The effective portion of changes in the fair value of hedging instruments that are designated and qualify as cash flow hedges is recognised in other comprehensive income and accumulated as ‘Cash Flow Hedge Reserve’. The gains/losses relating to the ineffective portion are recognised immediately in the Statement of Profit and Loss. Amounts previously recognised and accumulated in other comprehensive income are reclassified to profit or loss when the hedged item affects the Statement of Profit and Loss. However, when the hedged item results in the recognition of a non-financial asset, such gains/losses are transferred from equity (but not as reclassification adjustment) and included in the initial measurement cost of the non-financial asset. SECTION: Notes to the Consolidated Financial Statements SECTION: 1. Material Accounting Policies (Contd.) Hedge accounting is discontinued when the hedging instrument is derecognised, expires or is sold, terminated, or exercised, or when it no longer qualifies for hedge accounting. Any gains/losses recognised in other comprehensive income and accumulated in equity at that time remain in equity and are reclassified when the underlying transaction is ultimately recognised.
When an underlying transaction is no longer expected to occur, the gains/losses accumulated in equity are recognised immediately in the Statement of Profit and Loss. SECTION: Investment in Associates and Joint Ventures Investment in associates and joint ventures are accounted for using the ‘equity method’ less accumulated impairment, if any. SECTION: Financial Instruments, Financial Assets, Financial Liabilities and Equity Instruments Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions of the relevant instrument and are initially measured at fair value except for trade receivables that do not contain a significant financing component, which are measured at transaction price. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities measured at fair value through profit or loss) are added to or deducted from the fair value on initial recognition of financial assets or financial liabilities. Purchase or sale 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 when the Group commits to purchase or sell the asset. SECTION: Financial Assets SECTION: Recognition: Financial assets include Investments, Trade receivables, Advances, Security deposits, Cash and cash equivalents. Such assets are initially recognised at fair value or transaction price, as applicable, when the Group becomes party to contractual obligations. The transaction price includes transaction costs unless the asset is being fair valued through the Statement of Profit and Loss. SECTION: Classification: Management determines the classification of an asset at initial recognition depending on the purpose for which the assets were acquired. The subsequent measurement of financial assets depends on such classification. Financial assets are classified as those measured at: - (a) amortised cost, where the financial assets are held solely for collection of cash flows arising from payments of principal and/or interest. - (b) fair value through other comprehensive income (FVTOCI), where the financial assets are held not only for collection of cash flows arising from payments of principal and interest but also from the sale of such assets. Such assets are subsequently measured at fair value, with unrealised gains and losses arising from changes in the fair value being recognised in other comprehensive income. - (c) fair value through profit or loss (FVTPL), where the assets are managed in accordance with an approved investment strategy that triggers purchase and sale decisions based on the fair value of such assets. Such assets are subsequently measured at fair value. Unrealised gains and losses arising from changes in the fair value, including interest income and dividend income, if any, are recognised in the Statement of Profit and Loss in the period in which they arise. Trade receivables, Advances, Security deposits, Cash and cash equivalents etc. are classified for measurement at amortised cost while investments may fall under any of the aforesaid classes. However, in respect of particular investments in equity instruments that would otherwise be measured at fair value through profit or loss, an irrevocable election at initial recognition may be made to present subsequent changes in fair value through other comprehensive income. SECTION: Impairment: The Group assesses at each reporting date whether a financial asset (or a group of financial assets) such as Investments, Trade receivables, Advances and Security deposits held at amortised cost and financial assets that are measured at fair value through other comprehensive income are tested for impairment based on evidence or information that is available without undue cost or effort. Expected credit losses are assessed and loss allowances recognised if the credit quality of the financial asset has deteriorated significantly since initial recognition. SECTION: Reclassification: When and only when the business model is changed, the Group shall reclassify all affected financial assets prospectively from the reclassification date as subsequently measured at amortised cost, fair value through other comprehensive income or fair value through profit or loss without restating the previously recognised gains, losses or interest and in terms of the reclassification principles laid down in the Ind AS relating to Financial Instruments. SECTION: Derecognition: Financial assets are derecognised when the right to receive cash flows from the assets has expired, or has been transferred, and the Group has transferred substantially all of the risks and rewards of ownership.
Concomitantly, if the asset is one that is measured at: - (a) amortised cost, the gain or loss is recognised in the Statement of Profit and Loss; - (b) fair value through other comprehensive income, the cumulative fair value adjustments previously taken to reserves are reclassified to the Statement of Profit and Loss unless the asset represents an equity investment, in which case the cumulative fair value adjustments previously taken to reserves are reclassified within equity. SECTION: Income Recognition: Interest income is recognised in the Statement of Profit and Loss using the effective interest method. Dividend income is recognised in the Statement of Profit and Loss when the right to receive dividend is established. SECTION: Financial Liabilities Borrowings, trade payables and other financial liabilities are initially recognised at fair value and are subsequently measured at amortised cost. Any discount or premium on redemption/settlement is recognised in the Statement of Profit and Loss as finance cost over the life of the liability using the effective interest method and adjusted to the liability figure disclosed in the Balance Sheet. Financial liabilities are derecognised when the liability is extinguished, that is, when the contractual obligation is discharged, cancelled or on expiry. SECTION: Offsetting Financial Instruments Financial assets and liabilities are offset and the net amount is included in the Balance Sheet where there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. SECTION: Equity Instruments Equity instruments are recognised at the value of the proceeds, net of direct costs of the capital issue. SECTION: Revenue Revenue is measured at the transaction price that the Company receives or expects to receive as consideration for goods supplied and services rendered, net of returns and estimates of variable consideration such as discounts to customers. Revenue from the sale of goods includes Excise Duties and National Calamity Contingent Duty which are payable on manufacture of goods but excludes taxes such as VAT and Goods and Services Tax which are payable in respect of sale of goods and services. Revenue from the sale of goods and services is recognised when the Group performs its obligations to its customers and the amount of revenue can be measured reliably and recovery of the consideration is probable. The timing of such recognition in case of sale of goods is when control over the same is transferred to the customer, which is mainly upon delivery and in case of services, in the period in which such services are rendered. SECTION: Government Grant Group entities may receive government grants that require compliance with certain conditions related to the entity’s operating activities or are provided to the entity by way of financial assistance on the basis of certain qualifying criteria. Government grants are recognised when there is reasonable assurance that the grant will be received upon the Group entity complying with the conditions attached to the grant. Accordingly, government grants: - (a) related to or used for assets, are deducted from the carrying amount of the asset. - (b) related to incurring specific expenditures are taken to the Statement of Profit and Loss on the same basis and in the same periods as the expenditures incurred. - (c) by way of financial assistance on the basis of certain qualifying criteria are recognised in the Statement of Profit and Loss as they become receivable. In the unlikely event that a grant previously recognised is ultimately not received, it is treated as a change in estimate and the amount cumulatively recognised is expensed in the Statement of Profit and Loss. SECTION: Dividend Distribution Dividends paid (including income tax thereon, if any) are recognised in the period in which the interim dividends are approved by the Board of Directors, or in respect of the final dividend when approved by shareholders. SECTION: Employee Benefits Short-term employee benefits are expensed in the period in which the employee renders the related service on an undiscounted basis. A liability is recognised for the amount expected to be paid within twelve months, if the Company has a present legal or constructive obligation to pay the same as a result of past service provided by the employee and the obligation can be reliably estimated. The Group makes contributions to both defined benefit and defined contribution schemes which are mainly administered through duly constituted and approved Trusts. Provident Fund contributions are in the nature of defined contribution scheme.
In respect of employees who are members of constituted and approved trusts, the Group recognises contribution payable to such trusts as an expense including any shortfall in interest between the amount of interest realised by the investment and the interest payable to members at the rate declared by the Government of India. In respect of other employees, provident funds are deposited with the Government and recognised as expense. The Group makes contribution to defined contribution pension plan. The contribution payable is recognised as an expense when an employee renders the related service. The Group also makes contribution to defined benefit pension and gratuity plan. The cost of providing benefits under the defined benefit obligation is calculated by independent actuary using the projected unit credit method. Service costs and net interest expense or income is reflected in the Statement of Profit and Loss. Gain or Loss on account of remeasurements are recognised immediately through other comprehensive income in the period in which they occur. The employees of the Group are entitled to compensated leave for which the Group records the liability based on actuarial valuation computed using projected unit credit method. These benefits are unfunded. Actual disbursements made under the Workers’ Voluntary Retirement Scheme are accounted as revenue expenses. SECTION: Employee Share Based Compensation SECTION: Stock Options Stock Options are granted to eligible employees under the ITC Employee Stock Option Schemes (“ITC ESOS”), as may be decided by the Nomination & Compensation Committee / Board. Eligible employees for this purpose include employees of the Group entities, their Directors and those on deputation to joint ventures and associates. Under Ind AS, the cost of ITC Stock Options (Stock Options) is recognised based on the fair value of Stock Options as on the grant date. The fair values of Stock Options granted are recognised in the Statement of Profit and Loss over the period in which the performance and/or service conditions are fulfilled for employees of the Group (other than those out on deputation). The value of Stock Options, net of reimbursements, granted to employees on deputation is considered as capital contribution/investment. The Group generally seeks reimbursement of the value of Stock Options from such companies, as applicable. It may, if so recommended by the Corporate Management Committee and approved by the Audit Committee, decide not to seek such reimbursements in respect of value of Stock Options from such companies, who need to conserve financial capacity to sustain their business and growth plans and where the quantum of reimbursement is not material - the materiality threshold being ` 5 Crores for each entity for a financial year. SECTION: Cash Settled Stock Appreciation Linked Reward (SAR) Plan Cash Settled SAR units are granted to eligible employees under the ITC Employee Cash Settled Stock Appreciation Linked Reward Plan (“ITC ESARP”). The eligible employees for this purpose are such present and future permanent employees of the Company, including a Director of the Company, as may be decided by the CMC / Nomination & Compensation Committee / Board. For cash settled SAR units granted to eligible employees, a liability is initially measured at fair value at the grant date and is subsequently remeasured at each reporting period, until settled. The fair value of ESAR units granted is recognised in the Statement of Profit and Loss over the period in which the performance and/or service conditions are fulfilled for employees of the Group. In case of employees on deputation to group companies, the Company generally seeks reimbursements from the concerned group company. The value of such payments, net of reimbursements, is considered as capital contribution/investment. SECTION: Leases The Group assesses at contract inception whether a contract is, or contains, a lease. A contract is, or contains, a lease if it conveys the right to control the use of an identified asset for a period of time in exchange for consideration. SECTION: Group as a Lessee Right-of-Use (ROU) assets are recognised at inception of a contract or arrangement for significant lease components at cost less lease incentives, if any. ROU assets are subsequently measured at cost less accumulated depreciation and impairment losses, if any. The cost of ROU assets includes the amount of lease liabilities recognised, initial direct cost incurred and lease payments made at or before the lease commencement date. ROU assets are generally depreciated over the shorter of the lease term and estimated useful lives of the underlying assets on a straight-line basis.
Lease term is determined based on consideration of facts and circumstances that create an economic incentive to exercise an extension option, or not to exercise a termination option. Lease payments associated with short-term leases (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option) and low value leases (i.e., where the value of the underlying asset, when new, is ` 5 lakhs or less) are charged to the Statement of Profit and Loss on a straight-line basis over the term of the relevant lease. The Group recognises lease liabilities measured at the present value of lease payments to be made on the date of recognition of the lease. Such lease liabilities do not include variable lease payments (that do not depend on an index or a rate), which are recognised as expense in the periods in which they are incurred. Interest on lease liability is recognised using the effective interest method. Lease liabilities are subsequently increased to reflect the accretion of interest and reduced for the lease payments made. The carrying amount of lease liabilities is also remeasured upon modification of lease arrangement or upon change in the assessment of the lease term. The effect of such remeasurements is adjusted to the value of the ROU assets. SECTION: Group as a Lessor Leases in which the Group does not transfer substantially all the risks and rewards of ownership of an asset are classified as operating leases. Where the Group is a lessor under an operating lease, the asset is capitalised within property, plant and equipment or investment property and depreciated over its useful economic life. Payments received under operating leases are recognised in the Statement of Profit and Loss on a straight-line basis over the term of the lease. SECTION: Taxes on Income Taxes on income comprise current taxes and deferred taxes. Current tax in the Statement of Profit and Loss is provided as the amount of tax payable in respect of taxable income for the period using tax rates and tax laws enacted during the period, together with any adjustment to tax payable in respect of previous years. Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities and the amounts used for taxation purposes (tax base), at the tax rates and tax laws enacted or substantively enacted by the end of the reporting period. Deferred tax assets are recognised for the future tax consequences to the extent it is probable that future taxable profits will be available against which the deductible temporary differences can be utilised. Income tax, insofar as it relates to items disclosed under other comprehensive income or equity, is disclosed separately under other comprehensive income or equity, as applicable. Deferred tax assets and liabilities are offset when there is legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on net basis, or to realise the asset and settle the liability simultaneously. SECTION: Claims Claims against the Group not acknowledged as debts are disclosed after a careful evaluation of the facts and legal aspects of the matter involved. SECTION: Provisions Provisions are recognised when, as a result of a past event, the Group has a legal or constructive obligation; it is probable that an outflow of resources will be required to settle the obligation; and the amount can be reliably estimated. The amount so recognised is a best estimate of the consideration required to settle the obligation at the reporting date, taking into account the risks and uncertainties surrounding the obligation. In an event when the time value of money is material, the provision is carried at the present value of the cash flows estimated to settle the obligation. SECTION: Operating Segments Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker (CODM). The CODM, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Corporate Management Committee. Segments are organised based on businesses which have similar economic characteristics as well as exhibit similarities in nature of products and services offered, the nature of production processes, the type and class of customer and distribution methods.
Segment revenue arising from third party customers is reported on the same basis as revenue in the financial statements. Inter-segment revenue is reported on the basis of transactions which are primarily market led. Segment results represent profits before finance charges, unallocated corporate expenses and taxes. ``` ``` SECTION: Unallocated Corporate Expenses “Unallocated Corporate Expenses” include revenue and expenses that relate to initiatives / costs attributable to the enterprise as a whole. SECTION: Financial and Management Information Systems The Group’s Accounting System is designed to unify the Financial and Cost Records and also to comply with the relevant provisions of the Companies Act, 2013, to provide financial and cost information appropriate to the businesses and facilitate Internal Control. SECTION: Notes to the Consolidated Financial Statements SECTION: 2. Use of estimates and judgements The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period end. Although these estimates are based upon management’s best knowledge of current events and actions, actual results could differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. SECTION: A. Judgements in applying accounting policies The following are the judgements, apart from those involving estimations (see note B below), that the Group have made in the process of applying the accounting policies and that have a significant effect on the amounts recognised in the consolidated financial statements: SECTION: 1. Control: The Group assessed whether or not it has control on its investees based on whether, as an investor, it has the power / rights and consequently the practical ability to direct the relevant activities of its investees unilaterally. In making this judgement, the Group considered the absolute size of its holding, the relative size of and dispersion of other shareholders, and whether any contractual arrangements exist between the Company (and its subsidiaries) and other shareholders of the investees. Based on this, and in accordance with its Accounting Policy, the Group has determined that the entities listed in the notes to the financial statements are the only entities over which Group has control. The Company is a settlor for certain trusts, i.e., ITC Sangeet Research Academy, ITC Education and Health Care Trust and ITC Rural Development Trust. The Group while considering the nature and insignificant variability of its return has concluded that it does not ‘control’ these trusts. SECTION: 2. Significant influence: The Group assessed whether or not it has significant influence on its investees based on its practical ability to participate in the financial and operating policy decisions of the investee, though it is not in control or in joint control of these policies. Based on such assessment, the Group determined that the entities listed in the notes to the financial statements are the only entities over which the Group has significant influence, and accordingly recognised as associates. SECTION: 3. Joint Control: (i) The Group holds 50% of the equity share capital of Maharaja Heritage Resorts Limited, a company involved in operation of hotel properties. The Group do not consider that it is able to exercise control over the company as the decisions about relevant activities of the company are made jointly between the Group and the co-venturer (who holds 50% of the equity share capital) and both the parties have rights to the net assets of such arrangement. (ii) The Group holds 27.90% of the equity share capital of Logix Developers Private Limited, a company intended for the purpose of developing a luxury hotel-cum-service apartment complex. The Group has concluded that the key decisions about relevant activities of such company are made jointly between the Group and the co-venturer (who holds 72.10% of the equity share capital) and both the parties have rights to the net assets of such arrangement. (iii) The Group holds 50% of the equity share capital of ITC Filtrona Limited (formerly known as ITC Essentra Limited), a company involved in manufacture and sale of filter rods.
The Group has concluded that the key decisions about relevant activities of such company are made jointly between the Group and the co-venturer (who holds 50% of the equity share capital) and both the parties have rights to the net assets of such arrangement. SECTION: 4. Useful life of Intangible Assets: The Group is required to determine whether its intangible assets have indefinite or finite life which is a subject matter of judgement. Certain trademarks have been considered of having an indefinite useful life taking into account that there are no technical, technological or commercial risks of obsolescence or limitations under contract or law. Other trademarks have been amortised over their useful economic life. Refer notes to the financial statements. SECTION: B. Key sources of estimation uncertainty The following are the key assumptions concerning the future, and other key sources of estimation uncertainty at the end of the reporting period that may have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. SECTION: 1. Useful lives of property, plant and equipment, investment property and intangible assets: As described in the material accounting policies, the Group reviews the estimated useful lives of property, plant and equipment, investment property and intangible assets at the end of each reporting period and the impact of changes in the estimated useful life is considered in the period in which the estimate is revised. SECTION: 2. Fair value measurements and valuation processes: Some of the Group’s assets and liabilities are measured at fair value for financial reporting purposes. In estimating the fair value of an asset or a liability, the Group uses market-observable data to the extent it is available. Where Level 1 inputs are not available, the Group engages third party valuers, where required, to perform the valuation. Information about the valuation techniques and inputs used in determining the fair value of various assets, liabilities and share based payments are disclosed in the notes to the financial statements. SECTION: 3. Actuarial Valuation: The determination of Group’s liability towards defined benefit obligation to employees is made through independent actuarial valuation including determination of amounts to be recognised in the Statement of Profit and Loss and in other comprehensive income. Such valuation depends upon assumptions determined after taking into account inflation, seniority, promotion and other relevant factors such as supply and demand factors in the employment market. Information about such valuation is provided in notes to the financial statements. SECTION: 4. Claims, Provisions and Contingent Liabilities: The Group has ongoing litigations with various regulatory authorities and third parties. Where an outflow of funds is believed to be probable and a reliable estimate of the outcome of the dispute can be made based on management’s assessment of specific circumstances of each dispute and relevant external advice, management provides for its best estimate of the liability. Such accruals are by nature complex and can take number of years to resolve and can involve estimation uncertainty. Information about such litigations is provided in notes to the financial statements. SECTION: Notes to the Consolidated Financial Statements SECTION: Property, Plant and Equipment Particulars, As at 31st March, 2022, Additions, Withdrawals and adjustments, Translation Reserve, As at 31st March, 2023, Additions, Withdrawals and adjustments, Translation Reserve, As at 31st March, 2024 - 3A. Property, Plant and Equipment - Land: 2107.16, 7.17, 3.32, –, 2111.01, 20.18, 17.85, –, 2113.34 - Buildings: 8821.57, 693.69, 10.55, –, 9504.71, 1068.85, 11.62, –, 10561.94 - Leasehold Improvements: 23.11, 0.41, 6.36, 0.05, 17.21, 17.15, 3.05, 0.03, 31.34 - Plant and Equipment: 16863.03, 1750.62, 182.14, 0.24, 18431.75, 2410.68, 166.09, 0.17, 20676.51 - Furniture and Fixtures: 907.34, 104.25, 11.87, 0.05, 999.77, 78.15, 9.88, 0.04, 1068.08 - Vehicles: 179.38, 29.79, 23.44, (0.02), 185.71, 29.03, 25.69, 0.14, 189.19 - Office Equipment: 43.70, 3.84, 3.88, 0.02, 43.68, 12.32, 2.92, 0.01, 53.09 - Railway Sidings: 1.73, –, –, –, 1.73, –, –, –, 1.73 - TOTAL: 28947.02, 2589.77, 241.56, 0.34, 31295.57, 3636.36, 237.10, 0.39, 34695.22 - 3B. Capital work-in-progress: 3198.45, 2316.23, 2517.67, (12.30), 2984.71, 3252.02, 3528.66, 143.07, 2851.14 - 3C. Investment Property: 410.11, –, (0.52), –, 410.63, –, (0.95), –, 411.58 - 3D. Goodwill - Goodwill on Consolidation: 202.53, –, –, –, 202.53, –, –, –, 202.53 - Goodwill acquired through business combinations: 577.20, –, –, –, 577.20, –, –, –, 577.20 - TOTAL: 779.73, –, –, –, 779.73, –, –, –, 779.73 - **3E.
Other Intangible assets (acquired) - Assets with indefinite life, Trademarks: 1889.78, –, –, 1889.78, –, –, –, 1889.78 - Assets with finite life, Trademarks: 30.83, –, –, 30.82, –, –, –, 30.82 - Computer Software: 273.64, 69.58, 3.36, –, 339.86, 56.47, 1.84, –, 394.49 - Know How, Business and Commercial Rights: 43.35, 745.88, –, –, 789.23, 15.57, –, –, 804.80 - Customer Relationships: 35.21, –, –, –, 35.21, –, –, –, 35.21 - TOTAL: 2272.81, 815.46, 3.36, (0.01), 3084.90, 72.04, 1.84, –, 3155.10 - 3F. Intangible assets under development: 27.09, 54.43, 62.93, –, 18.59, 57.84, 66.79, –, 9.64 - 3G. Right-of-use assets - Land: 721.98, –, –, (3.48), 718.50, 9.55, 0.19, 24.22, 752.08 - Buildings: 255.07, 84.82, 72.74, 0.38, 267.53, 132.51, 49.90, 0.09, 350.23 - Plant and Equipment: 48.63, –, –, –, 48.63, –, 6.80, –, 41.83 - Vehicles: –, 2.92, –, –, 2.92, 0.96, 0.99, –, 2.89 - TOTAL: 1025.68, 87.74, 72.74, (3.10), 1037.58, 143.02, 57.88, 24.31, 1147.03 SECTION: Includes amounts transferred to Investment Property on its recognition. SECTION: Notes: 1. a) The above includes following assets given on operating lease: - Particulars, Gross Block, Accumulated Depreciation, Net Block, Charge for the year - Buildings: 0.94, 0.23, 0.71, 0.02, 0.94, 0.25, 0.69, 0.02 - Plant and Equipment: 243.01, 164.17, 78.84, 17.39, 260.13, 179.85, 80.28, 13.81 - TOTAL: 243.95, 164.40, 79.55, 17.41, 261.07, 180.10, 80.97, 13.83 b) The amount of expenditure recognised in the carrying amount of property, plant and equipment in the course of construction is ` 195.73 Crores (2023 - ` 90.68 Crores). 2. Land includes certain lands at Munger with Gross Block - ` 1.16 Crores (2023 - ` 1.16 Crores) which stood vested with the State of Bihar under the Bihar Land Reforms Act, 1950 for which compensation has not yet been determined. SECTION: Notes to the Consolidated Financial Statements Particulars, ` in Crores, Depreciation and Amortization, Net Book Value, Foreign, On, Currency, Withdrawals, Translation, Upto, As at, As at, - 3A. Property, Plant and Equipment - Land: –, –, –, –, –, –, –, –, 2113.34, 2111.01 - Buildings: 1214.41, 249.84, 4.23, –, 1460.02, 246.72, 6.10, –, 1700.64, 8861.30, 8044.69 - Leasehold Improvements: 15.64, 1.94, 6.00, 0.02, 11.60, 0.54, 2.21, 0.01, 9.94, 21.40, 5.61 - Plant and Equipment: 6908.33, 1269.70, 149.85, 0.16, 8028.34, 1251.42, 136.27, 0.08, 9143.57, 11532.94, 10403.41 - Furniture and Fixtures: 483.57, 80.62, 9.93, 0.04, 554.30, 84.10, 8.51, 0.03, 629.92, 438.16, 445.47 - Vehicles: 85.91, 20.25, 15.15, (0.01), 91.00, 20.33, 17.70, 0.08, 93.71, 95.48, 94.71 - Office Equipment: 30.82, 5.95, 4.59, 0.01, 32.19, 4.24, 2.49, –, 33.94, 19.15, 11.49 - Railway Sidings: 0.91, 0.13, –, –, 1.04, 0.13, –, –, 1.17, 0.56, 0.69 - TOTAL: 8739.59, 1628.43, 189.75, 0.22, 10178.49, 1607.48, 173.28, 0.20, 11612.89, 23082.33, 21117.08 - 3B. Capital work-in-progress: –, –, –, –, –, –, –, –, 2851.14, 2984.71 - 3C. Investment Property: 45.91, 12.38, (0.08), –, 58.37, 12.11, (0.17), –, 70.65, 340.93, 352.26 - 3D. Goodwill: –, –, –, –, –, –, –, –, 202.53, 202.53 - Goodwill acquired through business combinations: –, –, –, –, –, –, –, –, 577.20, 577.20 - TOTAL: –, –, –, –, –, –, –, –, 779.73, 779.73 - 3E. Other Intangible assets (acquired) - Assets with indefinite life: –, –, –, –, –, –, –, –, 1889.78, 1889.78 - Assets with finite life: - Trademarks: 20.59, 3.16, –, –, 23.75, 3.16, –, –, 26.91, 3.91, 7.07 - Computer Software: 209.48, 23.66, 0.41, –, 232.73, 35.00, 1.84, –, 265.89, 128.60, 107.13 - Know How, Business and Commercial Rights: 22.25, 67.06, –, –, 89.31, 78.69, –, –, 168.00, 636.80, 699.92 - Customer Relationships: 7.39, 4.40, –, –, 11.79, 4.40, –, –, 16.19, 19.02, 23.42 - TOTAL: 259.71, 98.28, 0.41, –, 357.58, 121.25, 1.84, –, 476.99, 2678.11, 2727.32 - 3F. Intangible assets under development: –, –, –, –, –, –, –, –, 9.64, 18.59 ``` ``` SECTION: Right-of-use assets As at 31st March, 2024 and 31st March, 2023, the details of Right-of-use assets are as follows: \| Asset Type \| As at 31st March, 2024 \| As at 31st March, 2023 \| \|---------------------\|------------------------\|------------------------\| \| Land \| 29.76 \| 36.29 \| \| Buildings \| 112.23 \| 138.56 \| \| Plant and Equipment \| 16.56 \| 20.56 \| \| Vehicles \| – \| 1.40 \| \| TOTAL \| 158.55 \| 207.91** \| The fair value of the investment property is ₹ 1020.05 Crores (2023 - ₹ 903.04 Crores).
The fair value has been determined based on a valuation carried out at the reporting date by a registered valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017. This has been categorized as Level 2 based on the valuation techniques used and inputs applied. The main inputs considered by the valuer include government rates, property location, market research & trends, contracted rentals, terminal yields, discount rates, and comparable values. Amounts recognised in the Statement of Profit and Loss in respect of the investment property: \| Particulars \| For the year ended 31st March, 2024 \| For the year ended 31st March, 2023 \| \|----------------------------------------------------------\|-------------------------------------\|-------------------------------------\| \| Rental Income etc. from investment property \| 128.29 \| 124.05 \| \| Direct Operating Expenses arising from investment property \| 13.32 \| 11.42 \| \| Direct Operating Expenses arising from investment property that did not generate rental income \| – \| – \| SECTION: Notes to the Consolidated Financial Statements SECTION: Capital work-in-progress (CWIP) ageing schedule \| Particulars \| Less than 1 year \| 1 - 2 years \| 2 - 3 years \| More than 3 years \| Total \| \|----------------------\|------------------\|--------------\|--------------\|-------------------\|-------\| \| As at 31st March, 2023 \| 1190.55 \| 646.01 \| 302.56 \| 845.59 \| 2984.71 \| \| Projects in Progress \| 1190.55 \| 646.01 \| 302.56 \| 845.59 \| 2984.71 \| \| Projects temporarily suspended \| – \| – \| – \| – \| – \| \| Total \| 1190.55 \| 646.01 \| 302.56 \| 845.59 \| 2984.71 \| SECTION: Completion schedule for Projects in Capital work-in-progress, which are overdue or have exceeded their cost compared to its original plan \| Particulars \| Less than 1 year \| 1 - 2 years \| 2 - 3 years \| More than 3 years \| \|----------------------\|------------------\|--------------\|--------------\|-------------------\| \| As at 31st March, 2023 \| 1018.03 \| – \| – \| – \| \| MXD - COL \| 1018.03 \| – \| – \| – \| \| MXD - KOL \| 633.54 \| – \| – \| – \| SECTION: Intangible assets under development (IAUD) ageing schedule \| Particulars \| Less than 1 year \| 1 - 2 years \| 2 - 3 years \| More than 3 years \| Total \| \|----------------------\|------------------\|--------------\|--------------\|-------------------\|-------\| \| As at 31st March, 2023 \| 15.33 \| 0.01 \| 3.25 \| – \| 18.59 \| \| Projects in Progress \| 15.33 \| 0.01 \| 3.25 \| – \| 18.59 \| \| Projects temporarily suspended \| – \| – \| – \| – \| – \| \| Total \| 15.33 \| 0.01 \| 3.25 \| – \| 18.59 \| Note: There are no projects in IAUD that are overdue or have exceeded their cost compared to their original plan as at 31st March, 2024 and 31st March, 2023. SECTION: Non-current investments \| Face Value \| As at 31st March, 2024 \| As at 31st March, 2023 \| \|------------\|------------------------\|------------------------\| \| (Fully Paid unless stated otherwise) \| (` in Crores) \| (` in Crores) \| \| 4.
Non-current investments (Contd.) \| \| \| \| INVESTMENT IN EQUITY INSTRUMENTS \| \| \| \| In Associates (carrying amount determined using the equity method of accounting) \| \| \| \| Quoted \| \| \| \| International Travel House Limited \| 39 \| 14,233 \| \| Cost of acquisition (including goodwill of ₹ 11.89 Crores) \| 21.87 \| 21.87 \| \| Add / (Less) : Group Share of Profits / (Losses) \| 60.46 \| 82.33 \| \| Gujarat Hotels Limited \| 17 \| 33,907 \| \| Cost of acquisition (including goodwill of ₹ 1.16 Crores) \| 1.94 \| 1.94 \| \| Add / (Less) : Group Share of Profits / (Losses) \| 19.43 \| 21.37 \| \| Unquoted \| \| \| \| Delectable Technologies Private Limited \| 2,386 \| 100 \| \| Cost of acquisition [including goodwill of ₹ 3.30 Crores (2023 - ₹ 0.09 Crores)] \| 3.60 \| 0.10 \| \| Add / (Less) : Group Share of Profits / (Losses) \| (0.18) \| 3.42 \| \| Mother Sparsh Baby Care Private Limited \| 100 \| 100 \| \| Cost of acquisition (including goodwill of ₹ 1.03 Crores) \| 0.96 \| 0.96 \| \| Add / (Less) : Group Share of Profits / (Losses) \| (0.14) \| 0.82 \| \| Sproutlife Foods Private Limited [Refer Note 29(x)] \| 2,443 \| - \| \| Cost of acquisition [including goodwill of ₹ 27.53 Crores (2023 - ₹ Nil)] \| 40.33 \| - \| \| Add / (Less) : Group Share of Profits / (Losses) \| (6.04) \| 34.29 \| \| ATC Limited \| Fully paid \| 55,650 \| \| Cost of acquisition (net of capital reserve of ₹ 0.16 Crore) \| 0.83 \| 0.83 \| \| Add / (Less) : Group Share of Profits / (Losses) \| 1.92 \| 2.75 \| \| ` 70.00 per share paid \| 1,39,125 \| 1,39,125 \| \| Cost of acquisition (including goodwill of ₹ 0.30 Crore) \| 2.92 \| 2.92 \| \| Add / (Less) : Group Share of Profits / (Losses) \| 2.31 \| 5.23 \| \| Russell Investments Limited \| 42 \| 75,435 \| \| Cost of acquisition (net of capital reserve of ₹ 0.30 Crore) \| 4.27 \| 4.27 \| \| Add / (Less) : Group Share of Profits / (Losses) \| 43.54 \| 47.81 \| \| Divya Management Limited \| 41 \| 82,915 \| \| Cost of acquisition (including goodwill of ₹ 1.09 Crores) \| 6.93 \| 6.93 \| \| Add / (Less) : Group Share of Profits / (Losses) \| 0.96 \| 7.89 \| \| Antrang Finance Limited \| 43 \| 24,634 \| \| Cost of acquisition (including goodwill of ₹ 0.10 Crore) \| 4.40 \| 4.40 \| \| Add / (Less) : Group Share of Profits / (Losses) \| 0.80 \| 5.20 \| \| Total \| 211.11 \| 211.11 \| SECTION: Investment in Preference Shares \| Face Value \| As at 31st March, 2024 \| As at 31st March, 2023 \| \|------------\|------------------------\|------------------------\| \| (Fully Paid unless stated otherwise) \| (` in Crores) \| (` in Crores) \| \| In Associates (carrying amount determined using the equity method of accounting) \| \| \| \| Unquoted \| \| \| \| Delectable Technologies Private Limited \| (Compulsorily Convertible Cumulative Preference Shares) \| 10 \| 7,759 \| \| Cost of acquisition [including goodwill of ₹ 6.78 Crores] \| 7.40 \| 7.40 \| \| Add / (Less) : Group Share of Profits / (Losses) \| (1.94) \| 5.46 \| \| Mother Sparsh Baby Care Private Limited \| (Compulsorily Convertible Cumulative Preference Shares) \| 10 \| 3,837 \| \| Cost of acquisition [including goodwill of ₹ 41.61 Crores (2023 - ₹ 30.62 Crores)] \| 44.04 \| 32.50 \| \| Add / (Less) : Group Share of Profits / (Losses) \| (4.66) \| 39.38 \| \| Sproutlife Foods Private Limited [Refer Note 29(x)] \| (Compulsorily Convertible Cumulative Preference Shares) \| 10 \| 9,571 \| \| Cost of acquisition [including goodwill of ₹ 128.43 Crores (2023 - ₹ Nil)] \| 184.68 \| - \| SECTION: Investment in Government or Trust Securities (at amortised cost) \| Face Value \| As at 31st March, 2024 \| As at 31st March, 2023 \| \|------------\|------------------------\|------------------------\| \| (Fully Paid unless stated otherwise) \| (` in Crores) \| (` in Crores) \| \| Quoted \| \| \| \| Government of India Zero Coupon Government Stock \| \| \| \| Zero Coupon Government Stock - 22-Feb-2025 \| 100 \| – \| \| Zero Coupon Government Stock - 15-Jun-2025 \| 100 \| 10,20,000 \| \| Zero Coupon
Government Stock - 22-Aug-2025 \| 100 \| 25,35,000 \| \| Zero Coupon Government Stock - 15-Dec-2025 \| 100 \| 36,34,800 \| \| Zero Coupon Government Stock - 17-Dec-2025 \| 100 \| 6,02,300 \| ``` ``` SECTION: Zero Coupon Government Stock Investments - Zero Coupon Government Stock - 22-Feb-2026: Face Value 100, Number 25,35,000, As at 31st March, 2024: 22.52, As at 31st March, 2023: 21.17 - Zero Coupon Government Stock - 15-Jun-2026: Face Value 100, Number 10,20,000, As at 31st March, 2024: 8.89, As at 31st March, 2023: 8.35 SECTION: Notes to the Consolidated Financial Statements \| Face Value \| As at 31st March, 2024 \| As at 31st March, 2023 \| \|------------\|-------------------------\|-------------------------\| \| (Fully Paid unless stated otherwise) \| (` in Crores) \| (` in Crores) \| **SECTION: 4.
Non-current investments (Contd.) Brought forward: 5367.83 (2024), 2227.71 (2023) SECTION: INVESTMENT IN GOVERNMENT OR TRUST SECURITIES (Contd.) \| Description \| Number \| As at 31st March, 2024 \| As at 31st March, 2023 \| \|-------------\|--------\|-------------------------\|-------------------------\| \| Zero Coupon Government Stock - 22-Aug-2026 \| 100 \| 63,54,400 (54.55) \| 63,54,400 (51.19) \| \| Zero Coupon Government Stock - 15-Dec-2026 \| 100 \| 10,20,000 (8.58) \| 10,20,000 (8.05) \| \| Zero Coupon Government Stock - 22-Feb-2027 \| 100 \| 40,11,000 (33.20) \| 40,11,000 (31.10) \| \| Zero Coupon Government Stock - 15-Jun-2027 \| 100 \| 31,17,000 (25.32) \| 31,17,000 (23.73) \| \| Zero Coupon Government Stock - 22-Aug-2027 \| 100 \| 48,54,400 (38.70) \| 48,54,400 (36.20) \| \| Unquoted \| \| Government Securities - cost ` 70000.00 (0.01) \| 0.01 \| \| National Savings Certificates (pledged with various Mandi Samitis) (cost ` 6000.00) \| \| \| \| SECTION: INVESTMENT IN BONDS IN THE NATURE OF DEBENTURES (at amortised cost) SECTION: Quoted \| Description \| Number \| As at 31st March, 2024 \| As at 31st March, 2023 \| \|-------------\|--------\|-------------------------\|-------------------------\| \| Tax Free Bonds - Secured, Redeemable & Non-Convertible \| \| \| \| \| Housing and Urban Development Corporation Limited 7.07% - Series B - 01-Oct-2025 \| 10,00,000 \| 432.13 \| 433.65 \| \| 7.19% - Series A - 31-Jul-2025 \| 10,00,000 \| 15.18 \| 15.31 \| \| 7.39% - Series 2A - 08-Feb-2031 \| 1,000 \| 70.07 \| 70.07 \| \| 8.20% - Series 2 - 05-Mar-2027 \| 1,000 \| 52.62 \| 53.42 \| \| India Infrastructure Finance Company Limited 7.36% - Series II - 22-Jan-2028 \| 1,000 \| 31.38 \| 31.69 \| \| 8.26% - Series V B - 23-Aug-2028 \| 10,00,000 \| 121.96 \| 122.82 \| \| 8.46% - Series VI B - 30-Aug-2028 \| 10,00,000 \| 137.27 \| 138.65 \| \| 8.48% - Series VII B - 05-Sep-2028 \| 10,00,000 \| 185.83 \| 187.31 \| \| Indian Railway Finance Corporation Limited 7.07% - Series 102 - 21-Dec-2025 \| 1,000 \| 7.13 \| 7.18 \| \| 7.15% - Series 100 - 21-Aug-2025 \| 10,00,000 \| 25.28 \| 25.46 \| \| 7.19% - Series 99 - 31-Jul-2025 \| 10,00,000 \| 225.26 \| 225.38 \| \| 7.34% - Series 86A - 19-Feb-2028 \| 1,000 \| 10.51 \| 10.63 \| \| 8.48% - Series 89A - 21-Nov-2028 \| 10,00,000 \| 130.20 \| 131.09 \| \| 8.55% - Series 94A - 12-Feb-2029 \| 10,00,000 \| 13.60 \| 13.69 \| Brought forward: 6986.61 (2024), 3844.34 (2023) SECTION: INVESTMENT IN BONDS IN THE NATURE OF DEBENTURES (Contd.) \| Description \| Number \| As at 31st March, 2024 \| As at 31st March, 2023 \| \|-------------\|--------\|-------------------------\|-------------------------\| \| National Bank for Agriculture and Rural Development, 7.07% - Series 1A - 25-Feb-2026 \| 10,00,000 \| 2,000 \| 203.14 \| 2,000 \| 204.71 \| \| National Highways Authority of India, 7.11% - Series NHAI - II A - 18-Sep-2025 \| 10,00,000 \| 2,600 \| 260.23 \| 2,600 \| 260.25 \| \| 7.14% - Series I A - 11-Jan-2026 \| 1,000 \| 8,06,381 \| 81.19 \| 8,06,381 \| 81.45 \| \| 7.28% - Series NHAI - II B - 18-Sep-2030 \| 10,00,000 \| 2,500 \| 250.00 \| 2,500 \| 250.00 \| \| 7.35% - Series II A - 11-Jan-2031 \| 1,000 \| 17,49,943 \| 181.40 \| 17,49,943 \| 182.10 \| \| 8.50% - Series II A - 05-Feb-2029 \| 1,000 \| 5,00,000 \| 54.74 \| 5,00,000 \| 55.55 \| \| 8.75% - Series II B - 05-Feb-2029 \| 1,000 \| 2,50,000 \| 27.77 \| 2,50,000 \| 28.25 \| \| National Housing Bank, 8.46% - Series V - 30-Aug-2028 \| 10,00,000 \| 800 \| 83.07 \| 800 \| 83.65 \| \| Power Finance Corporation Limited, 7.16% - Series 136 - 17-Jul-2025 \| 10,00,000 \| 600 \| 60.63 \| 600 \| 61.11 \| \| 8.46% - Series 107B - 30-Aug-2028 \| 10,00,000 \| 500 \| 51.92 \| 500 \| 52.28 \| \| 8.54% - Series 2A - 16-Nov-2028 \| 1,000 \| 3,50,000 \| 38.73 \| 3,50,000 \| 39.42 \| \| REC Limited, 7.17% - Series 5A - 23-Jul-2025 \| 10,00,000 \| 850 \| 85.88 \| 850 \| 86.51 \| \| 8.46% - Series 3B - 29-Aug-2028 \| 10,00,000 \| 1,190 \| 125.96 \| 1,190 \| 127.30 \| \| 8.46% - Series 2A - 24-Sep-2028 \| 1,000 \| 3,50,000 \| 38.52 \| 3,50,000 \| 39.20 \| \| 8.54% - Series 4B - 11-Oct-2028 \| 10,00,000 \| 50 \| 5.21 \| 50 \| 5.25 \| SECTION: Taxable Bonds - Unsecured, Redeemable & Non-Convertible** \| Description \|
Number \| As at 31st March, 2024 \| As at 31st March, 2023 \| \|-------------\|--------\|-------------------------\|-------------------------\| \| HDFC Bank Limited, 7.80% - Series US005 - 02-Jun-2025 \| 1,00,000 \| 10,000 \| 99.88 \| – \| – \| \| National Bank for Agriculture and Rural Development, 5.70% - Series 22 D - 31-Jul-2025 \| 10,00,000 \| – \| – \| 1,000 \| 99.45 \| \| 7.62% - Series 24 H - 10-May-2029 \| 1,00,000 \| 20,000 \| 200.00 \| – \| – \| \| 7.62% - Series 23 I - 31-Jan-2028 \| 1,00,000 \| 19,000 \| 188.72 \| – \| – \| \| 7.49% - Series 24 B - 15-Oct-2026 \| 1,00,000 \| 10,000 \| 99.06 \| – \| – \| \| 7.69% - Series 20 C - 29-May-2024 \| 10,00,000 \| – \| – \| 4,300 \| 441.85 \| Brought forward: 9281.14 (2024), 5942.67 (2023) SECTION: Notes to the Consolidated Financial Statements \| Face Value \| As at 31st March, 2024 \| As at 31st March, 2023 \| \|------------\|-------------------------\|-------------------------\| \| (Fully Paid unless stated otherwise) \| (` in Crores) \| (` in Crores) \| SECTION: 4. Non-current investments (Contd.) Brought forward: 9281.14 (2024), 5942.67 (2023) SECTION: INVESTMENT IN BONDS IN THE NATURE OF DEBENTURES (Contd.) \| Particulars \| Number \| As at 31st March, 2024 \| As at 31st March, 2023 \| \|-------------\|--------\|-------------------------\|-------------------------\| \| Power Finance Corporation Limited, 8.20% - Series 128 - 10-Mar-2025 \| 10,00,000 \| – \| – \| 450 \| 46.75 \| \| 8.39% - Series 130 C - 19-Apr-2025 \| 10,00,000 \| – \| – \| 200 \| 20.89 \| SECTION: Additional Tier 1 bonds - Perpetual in nature, issued by commercial banks under Reserve Bank of India guidelines. SECTION: Notes to the Consolidated Financial Statements \| As at 31st March, 2024 (` in Crores) \| As at 31st March, 2023 (` in Crores) \| \|---------------------------------------\|---------------------------------------\| \| 5. Loans \| \| \| Current \| Non-Current \| Current \| Non-Current \| \| Others Loans - Employees \| 9.81 \| 4.05 \| 7.12 \| 5.48 \| \| TOTAL \| 9.81 \| 4.05 \| 7.12 \| 5.48 \| ``` ``` SECTION: Financial Assets as at 31st March, 2024 (` in Crores) \| Category \| Current \| Non-Current \| Current \| Non-Current \| \|---\|---\|---\|---\|---\| \| 6. Other financial assets \| \| \| \| \| \| Bank deposits with more than 12 months maturity \| – \| 329.65 \| – \| 2144.07 \| \| Other financial assets \| \| \| \| \| \| Advances \| 3.58 \| – \| 4.93 \| – \| \| Security Deposits* \| 32.25 \| 79.03 \| 28.39 \| 74.34 \| \| Deposits other than Security Deposits \| 10.76 \| 0.31 \| 2.75 \| 1520.62 \| \| Interest accrued on Loans, Deposits, Investments etc. \| 422.76 \| – \| 413.38 \| 0.72 \| \| Other Receivables \| 712.39 \| – \| 669.22 \| – \| \| TOTAL** \| 1181.74 \| 408.99 \| 1118.67 \| 3739.75 \| * Include deposits to Directors and Key Management Personnel ` 0.01 Crore (2023 - ` 0.06 Crore) (Refer Note 31). Comprise receivables on account of government grants, claims, rentals, derivatives designated as hedging instruments, unbilled revenue etc. --- SECTION: Notes to the Consolidated Financial Statements** \| Category \| As at 31st March, 2024 (` in Crores) \| As at 31st March, 2023 (` in Crores) \| \|---\|---\|---\| \| 7. Deferred tax* \| \| \| \| Deferred tax liabilities (Net) \| 2141.44 \| 1629.00 \| \| Less: Deferred tax assets (Net) \| 72.19 \| 52.02 \| \| TOTAL \| 2069.25 \| 1576.98 \| * Refer Note 29(xvii). --- SECTION: Movement in Deferred Tax Liabilities / Assets Balances (` in Crores) \| Category \| Opening Balance \| Recognised in profit or loss \| Recognised directly in OCI \| Reclassified to profit or loss \| Effect of foreign exchange \| Closing Balance \| \|---\|---\|---\|---\|---\|---\|---\| \| Deferred tax liabilities / assets in relation to: \| \| \| \| \| \| \| \| On fiscal allowances on property, plant and equipment, investment property etc.
\| 1740.53 \| 146.09 \| – \| – \| – \| 1886.62 \| \| On Excise Duty / National Calamity Contingent Duty on closing stock \| 117.93 \| (17.32) \| – \| – \| – \| 100.61 \| \| On cash flow hedges \| (0.41) \| – \| (3.19) \| (2.74) \| 4.82 \| (1.52) \| \| Other timing differences \| 324.99 \| 175.69 \| 280.90 \| – \| – \| 781.63 \| \| Total Deferred Tax Liabilities \| 2183.04 \| 304.46 \| 277.71 \| (2.74) \| 4.82 \| 2767.34 \| --- SECTION: 8. Other Assets \| Category \| As at 31st March, 2024 \| As at 31st March, 2023 \| \|---\|---\|---\| \| Current \| Non-Current \| Current \| Non-Current \| \| Capital Advances \| – \| 292.17 \| – \| 224.56 \| \| Advances other than capital advances \| \| \| \| \| \| Security Deposits \| \| \| \| \| \| – With Statutory Authorities \| 0.78 \| 813.46 \| 0.38 \| 811.75 \| \| – Others \| 0.97 \| 163.30 \| 0.79 \| 151.23 \| \| Advances to related parties (Refer Note 31) \| 21.30 \| 9.54 \| 5.76 \| – \| \| Other Advances (including advances with statutory authorities, prepaid expenses, employees etc.) \| 1130.65 \| 99.06 \| 1323.82 \| 122.26 \| \| Other Receivables* \| 229.49 \| 2.33 \| 231.00 \| 2.15 \| \| TOTAL \| 1383.19 \| 1379.86 \| 1561.75 \| 1311.95 \| * Comprise receivables on account of government grants, withholding taxes etc. --- SECTION: 9. Inventories* \| Category \| As at 31st March, 2024 \| As at 31st March, 2023 \| \|---\|---\|---\| \| Raw materials (including packing materials) \| 8727.39 \| 7129.99 \| \| Work-in-progress \| 1334.72 \| 961.08 \| \| Finished goods (manufactured) \| 2297.12 \| 2268.64 \| \| Stock-in-trade (goods purchased for resale) \| 1048.58 \| 760.37 \| \| Stores and spares \| 649.34 \| 535.99 \| \| Intermediates - Tissue paper and Paperboards \| 95.73 \| 115.09 \| \| TOTAL \| 14152.88 \| 11771.16 \| The above includes goods in transit as under: \| Category \| As at 31st March, 2024 \| As at 31st March, 2023 \| \|---\|---\|---\| \| Raw materials (including packing materials) \| 159.15 \| 239.89 \| \| Stock-in-trade (goods purchased for resale) \| 2.89 \| 2.37 \| \| Stores and spares \| 2.45 \| 5.41 \| \| TOTAL \| 164.49 \| 247.67 \| The cost of inventories recognised as an expense includes ` 157.99 Crores (2023 - ` 158.14 Crores) in respect of write offs / write-downs of inventory to net realisable value. During the year, reversal of previous write-downs of ` 1.87 Crores (2023 - ` 0.81 Crore) have been made owing to subsequent increase in net realisable value. Inventories of ` 1551.68 Crores (2023 - ` 957.15 Crores) are expected to be recovered after more than twelve months. --- SECTION: 10. Biological Assets Other than Bearer Plants \| Category \| Amount \| \|---\|---\| \| Balance at the beginning of the year \| 142.97 \| \| Biological assets acquired during the year \| 1.55 \| \| Cost incurred during the year \| 178.30 \| \| Changes in fair value* \| 60.64 \| \| Transfer of Biological assets to Inventories \| (12.54) \| \| Biological assets sold during the year \| (220.85) \| \| Effect of foreign exchange translation \| (0.07) \| \| Balance at the end of the year \| 150.00 \| * Represents aggregate gain / (loss) arising on account of change in fair value less costs to sell during the year. --- SECTION: Notes to the Consolidated Financial Statements \| Face Value \| As at 31st March, 2024 \| As at 31st March, 2023 \| \|---\|---\|---\| \| (Fully Paid unless stated otherwise) \| Number (` in Crores) \| Number (` in Crores) \| \| 11.
Current investments (at fair value through profit or loss, unless stated otherwise) (Contd.) \| \| \| \| INVESTMENT IN EQUITY INSTRUMENTS \| \| \| \| In Others \| \| \| \| Quoted \| \| \| \| Ultra Tech Cement Limited \| 10 \| 3,… \| \| Unquoted \| \| \| \| SKH Metals Limited \| 10 \| 40,000,… \| \| Patheja Brothers Forgings and Stampings Limited \| 10 \| 50,000,… \| \| Jind Textiles Limited \| 10 \| 5,00,000,… \| \| Taib Capital Corporation Limited \| 10 \| 2,45,000,… \| --- SECTION: Notes to the Consolidated Financial Statements (Contd.) \| Face Value \| As at 31st March, 2024 \| As at 31st March, 2023 \| \|---\|---\|---\| \| (Fully Paid unless stated otherwise) \| \| \| \| INVESTMENT IN CERTIFICATES OF DEPOSIT \| \| \| \| Unquoted \| \| \| \| Axis Bank Limited - 19-Jul-2023 \| 5,00,000 \| – \| \| Axis Bank Limited - 18-Jul-2024 \| 5,00,000 \| 42,000 \| \| Export Import Bank of India - 17-Aug-2023 \| 5,00,000 \| – \| \| Export Import Bank of India - 29-Aug-2023 \| 5,00,000 \| – \| \| HDFC Bank Limited - 17-Jul-2023 \| 5,00,000 \| – \| \| HDFC Bank Limited - 11-Aug-2023 \| 5,00,000 \| – \| --- SECTION: Summary of Current Investments \| Category \| Amount \| \|---\|---\| \| Brought forward \| 2056.11 \| \| Total Current Investments \| 3267.18 \| ``` ``` SECTION: Investment in Government or Trust Securities (at amortised cost) - Unquoted: - National Savings Certificates (pledged with Mandi Samiti) (cost ` 2000.00) - National Savings Certificate (cost ` 10000.00) SECTION: Investment in Debt Mutual Funds - Quoted: - Exchange Traded Funds - Edelweiss Mutual Fund: 1,000, – , 30,00,000, 368.72 - Nippon India Mutual Fund: 10,58,69,560, 70.52, 58,69,560, 65.73 - Unquoted: - Liquid / Overnight Funds - Aditya Birla Sun Life Mutual Fund: 100, – , 15,43,944, 72.61 - Axis Mutual Fund: 1,000, 7,81,331, 208.45, 2,65,373, 70.21 - Bandhan Mutual Fund: 1,000, – , – , 784, 0.21 SECTION: Notes to the Consolidated Financial Statements - Face Value, As at 31st March, 2024, As at 31st March, 2023 - Current investments (at fair value through profit or loss, unless stated otherwise): - Brought forward: 2891.92, 5990.03 SECTION: Investment in Debt Mutual Funds (Contd.) - DSP Mutual Fund: 1,000, – , – , 81,780, 26.07 - HDFC Mutual Fund: 100, 3,91,114, 184.02, – , – - ICICI Prudential Mutual Fund: 100, 9,58,246, 34.20, 1,96,704, 4.05 - Kotak Mutual Fund: 1,000, 5,697, 2.78, – , – - LIC Mutual Fund: 1,000, 2,31,584, 100.18, – , – - Nippon India Mutual Fund: 100, – , – , 66,75,451, 80.01 - Nippon India Mutual Fund: 1,000, 3,41,195, 199.82, 2,95,476, 161.04 - SBI Mutual Fund: 1,000, 49,240, 16.98, 4,80,959, 168.16 - UTI Mutual Fund: 1,000, 34,046, 13.41, 31,444, 11.52 SECTION: ITC Limited Report and Accounts 2024 - Notes to the Consolidated Financial Statements: - Face Value, As at 31st March, 2024, As at 31st March, 2023 - Current investments (at fair value through profit or loss, unless stated otherwise): - Brought forward: 11216.81, 13601.93 SECTION: Investment in Bonds in the Nature of Debentures (at amortised cost) - Quoted: - Taxable Bonds - Unsecured, Redeemable & Non-Convertible - National Bank for Agriculture and Rural Development, 6.40% - Series 20K - 31-Jul-2023, 10,00,000, – , – , 2,700, 268.84 - Small Industries Development Bank of India, 5.40% - Series IV - 17-Mar-2025 (with Put and Call option on 18-Mar-2024), 10,00,000, – , – , 250, 24.46 SECTION: Aggregate Amount of Investments - Aggregate amount of quoted investments: 119.98, 3414.42 - Aggregate amount of unquoted investments: 12824.44, 13818.44 - Total: 12944.42, 17232.86 - Aggregate market value of quoted investments: ` 119.60 Crores (2023 - ` 3414.51 Crores) SECTION: Trade Receivables (Current) - Considered good - Secured: 55.06, 56.56 - Considered good - Unsecured: 3970.76, 2899.61 - Credit impaired: 188.13, 197.55 - Less: Allowance for credit impairment: 188.13, 197.55 - TOTAL: 4025.82, 2956.17 SECTION: Trade Receivables Ageing Schedule - Outstanding for following periods from due date of payment as at 31st March, 2024: - Undisputed Trade Receivables – considered good: 1851.02, 2109.43, 59.95, 5.33, 0.02, 0.07, 4025.82 - Undisputed Trade Receivables – credit impaired: – , 2.68, 10.24, 7.85, 4.71, 43.61, 69.09 - Disputed Trade Receivables – credit impaired: – , 1.03, 3.27, 2.98, 0.65, 111.11, 119.04 - SUB-TOTAL: 1851.02, 2113.14, 73.46, 16.16, 5.38, 154.79, 4213.95 - Less: Allowance for credit impairment: 188.13 - TOTAL: 4025.82 SECTION: Cash and Cash Equivalents - Balances
with Banks: - Current accounts: 477.01, 453.39 - Deposit accounts: 138.66, 5.08 - Cheques, drafts on hand: 2.00, 1.39 - Cash on hand: 8.22, 3.49 - TOTAL: 625.89, 463.35 ``` ``` SECTION: Other bank balances Earmarked balances: 268.94, 239.43 In deposit accounts: 6322.85, 4177.41 TOTAL: 6591.79, 4416.84 * Includes balances towards unpaid dividend, unspent corporate social responsibility. Represents deposits with original maturity of more than 3 months having remaining maturity of less than 12 months from the Balance Sheet date. SECTION: Notes to the Consolidated Financial Statements SECTION: As at 31st March, 2024, 31st March, 2024, 31st March, 2023, 31st March, 2023 Equity Share capital (No. of Shares) (` in Crores): Authorised, Ordinary Shares of ` 1.00 each: 20,00,00,00,000, 2000.00, 20,00,00,00,000, 2000.00 Issued and Subscribed, Ordinary Shares of ` 1.00 each, fully paid: 12,48,47,21,471, 1248.47, 12,42,80,17,741, 1242.80 SECTION: A) Reconciliation of number of Ordinary Shares outstanding As at beginning of the year: 12,42,80,17,741, 1242.80, 12,32,32,55,931, 1232.33 Add: Issue of Shares on exercise of Options: 5,67,03,730, 5.67, 10,47,61,810, 10.48 As at end of the year: 12,48,47,21,471, 1248.47, 12,42,80,17,741, 1242.80 SECTION: B) Shareholders holding more than 5% of the Ordinary Shares in the Company Tobacco Manufacturers (India) Limited: 2,54,14,95,863, 20.36, 2,97,83,47,320, 23.96 Life Insurance Corporation of India: 1,89,68,61,285, 15.19, 1,89,68,61,285, 15.26 Specified Undertaking of the Unit Trust of India: 97,45,31,427, 7.81, 97,45,31,427, 7.84 SECTION: C) Shareholding of Promoters Nil SECTION: D) Ordinary Shares allotted as fully paid pursuant to contract(s) without payment being received in cash or as fully paid up Bonus Shares during the period of five years immediately preceding 31st March Nil SECTION: E) Rights, preferences and restrictions attached to the Ordinary Shares The Ordinary Shares of the Company, having par value of ` 1.00 per share, rank pari passu in all respects including voting rights and entitlement to dividend. SECTION: F) Shares reserved for issue under Options Ordinary Shares of ` 1.00 each: 8,99,46,120, 13,20,94,790 SECTION: Terms and Conditions of Options Granted Each Option entitles the holder thereof to apply for and be allotted ten Ordinary Shares of the Company of ` 1.00 each upon payment of the exercise price during the exercise period. The exercise period commences from the date of vesting of the Options and expires at the end of five years from the date of vesting in respect of Options. The vesting period for conversion of Options is as follows: - On completion of 12 months from the date of grant of the Options: 30% vests - On completion of 24 months from the date of grant of the Options: 30% vests - On completion of 36 months from the date of grant of the Options: 40% vests The Options have been granted at the 'market price' as defined under the Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021. Further details of ITC Employee Stock Option Schemes are provided in Note 29(xii). SECTION: Notes to the Consolidated Financial Statements SECTION: As at 31st March, 2024 and 31st March, 2023 16. Non-current borrowings Unsecured: Term loans – From Others: – 0.21 Deferred payment liabilities – Sales tax deferment loans: 1.76, 3.28 TOTAL: 1.76, 3.49 Terms of borrowings are as under: Term Loans from Others: Interest free loan repayable on the basis of 33% (2023 - 33%) of the net profits earned by a subsidiary or the residual balance, whichever is less. During the year, the subsidiary has repaid the outstanding balance in accordance with the terms of the loan. Sales tax deferment loans: Interest free deferral period of 14 years and repayable by 2025-26. The repayment schedule is summarised as under: Term Loans, Deferred Payment Liabilities In the first year (Refer Note 20): –, 1.52, 0.10, 1.26 Current maturities of long-term debt: –, 1.52, 0.10, 1.26 In the second year: –, 1.76, 0.21, 1.52 In the third to fifth year: –, –, –, 1.76 Non-current borrowings: –, 1.76, 0.21, 3.28 SECTION: 17A. Lease liabilities Current, Non-Current Lease liabilities: 61.54, 230.61, 53.86, 213.37 TOTAL: 61.54, 230.61, 53.86, 213.37 SECTION: Movement of Lease Liabilities during the year Particulars, 31st March, 2024, 31st March, 2023 Opening Lease Liabilities: 267.23, 243.85 New Leases recognised: 116.74, 87.31 Remeasurements and withdrawals: (24.95), (4.83) Interest expense on Lease Liabilities: 21.97, 20.35 Payment of Lease Liabilities made (including interest): (88.86), (79.46) Foreign Currency Translation Reserve adjustment: 0.02, 0.01 Closing Lease Liabilities: 292.15, 267.23 SECTION: Notes to the Consolidated Financial Statements** As at 31st March, 2024 (` in Crores), As at 31st March, 2023 (` in Crores) 17B.
Other financial liabilities Non-current: Others (Includes payable towards employee benefits, retention money payable towards property, plant and equipment, deposits, contingent consideration on asset acquisition etc.): 433.96, 416.87 TOTAL: 433.96, 416.87 Current: Interest accrued: 2.01, 2.39 Unpaid dividend: 251.19, 239.07 Unpaid matured deposits and interest accrued thereon: …, … Unpaid matured debentures / bonds and interest accrued thereon: 0.30, 0.30 Others (Includes payable towards employee benefits, property, plant and equipment, derivatives designated as hedging instruments, contingent consideration on business combination / asset acquisition etc.): 1925.50, 2165.95 TOTAL: 2179.00, 2407.71 Represents dividend amounts either not claimed or kept in abeyance in accordance with Section 126 of the Companies Act, 2013 or such amounts in respect of which Prohibitory / Attachment Orders are on record with the Company. Represents amounts which are subject matter of a pending legal dispute with a bank for which the Company has filed a suit. Current, Non-Current 18. Provisions Provision for employee benefits [Refer Note 29(vi)]: Retirement benefits: 79.85, 199.28, 74.97, 180.02 Other benefits: 27.06, 88.73, 25.59, 78.90 Provision for standard assets: –, 0.29, –, 0.29 TOTAL: 106.91, 288.30, 100.56, 259.21 SECTION: Notes to the Consolidated Financial Statements** As at 31st March, 2024 (` in Crores), As at 31st March, 2023 (` in Crores) 19. Other liabilities Non-current: Advances received from customers: 149.72, 82.84 TOTAL: 149.72, 82.84 Current: Statutory liabilities: 4542.71, 4142.21 Advances received from customers: 886.17, 1294.84 Others (includes deferred revenue, accruals etc.): 165.84, 134.30 TOTAL: 5594.72, 5571.35 * Includes revenue received in advance. 20. Current borrowings Secured: Loans from Banks: Cash credit facilities: –, 33.96 Unsecured: Loans from Banks: Working Capital Loan: 8.00, – Current maturities of long-term debt (Refer Note 16): 1.52, 1.36 TOTAL: 9.52, 35.32 Cash credit facilities are secured by hypothecation of certain property, plant and equipment and current assets, both present and future. 21A. Income Tax Assets (Net) Income Tax Assets (net of provisions): 44.93, 66.16 TOTAL: 44.93, 66.16 21B. Current Tax Liabilities (Net) Current taxation (net of advance payment): 940.88, 911.62 TOTAL: 940.88, 911.62 SECTION: Notes to the Consolidated Financial Statements SECTION: For the year ended 31st March, 2024 (` in Crores) SECTION: For the year ended 31st March, 2023 (` in Crores) 22A. Revenue from operations Sale of Products: 69731.48, 70017.08 Sale of Services: 6543.50, 5809.50 Gross Revenue from sale of products and services: 76274.98, 75826.58 Other Operating Revenues#: 565.51, 691.63 TOTAL: 76840.49, 76518.21 Net of sales returns, damaged stocks and estimates of variable consideration such as discounts to customers. SECTION: Includes Government grants of ` 248.93 Crores (2023 - ` 311.41 Crores) on account of Fiscal and Exports incentives etc. SECTION: 22B. Gross Revenue from sale of products and services FMCG: – Cigarettes etc.: 33667.97, 31267.46 – Branded Packaged Food Products: 17202.92, 15768.10 – Others (Education and Stationery Products, Personal Care Products, Safety Matches, Agarbattis etc.): 3753.28, 3341.23 Hotels: – Income from Sale of Services: 3085.49, 2672.79 Agri Business: – Unmanufactured Tobacco: 2447.20, 2510.93 – Other Agri Products and Commodities (Wheat, Rice, Spices, Coffee, Soya etc.): 6071.45, 9850.69 Paperboards, Paper and Packaging: – Paperboards and Paper: 5868.06, 6562.04 – Packaging and Printed Materials: 606.68, 671.65 Others: – Others (Information Technology services etc.): 3571.93, 3181.69 TOTAL: 76274.98, 75826.58 * Net of sales returns, damaged stocks and estimates of variable consideration such as discounts to customers. SECTION: Notes to the Consolidated Financial Statements SECTION: For the year ended 31st March, 2024 SECTION: For the year ended 31st March, 2023 23. Other income Interest income: 1710.51, 1534.00 Dividend income: 11.13, 0.02 Other non-operating income: 1006.20, 446.47 TOTAL: 2727.84, 1980.49 SECTION: Interest income: a) Deposits with banks etc.
- carried at amortised cost: 629.39, 462.79 b) Financial assets: – mandatorily measured at FVTPL: 214.03, 221.96 – measured at amortised cost: 565.95, 723.09 – measured at FVTOCI: 294.85, 121.29 c) Others (from statutory authorities etc.): 6.29, 4.87 TOTAL: 1710.51, 1534.00 SECTION: Dividend income: a) Equity instruments measured at FVTOCI held at the end of reporting period: 11.11, 0.01 b) Other investments: 0.02, 0.01 TOTAL: 11.13, 0.02 SECTION: Other non-operating income: Net foreign exchange gain / (loss): 7.79, 37.00 Net gain / (loss) arising on financial instruments measured at amortised cost / mandatorily measured at FVTPL (Refer Note 32): 833.34, 257.76 Gain recognised on divestment of shares held in joint venture: 9.84, - [Refer Note 29(viii)] Impairment of investment in joint venture [Refer Note 29(ix)]: (0.06), (1.42) Others (Including income from leases etc.): 155.29, 153.13 TOTAL: 1006.20, 446.47 Includes ` 182.73 Crores (2023 - ` 108.16 Crores) being net gain / (loss) on sale of investments. SECTION: Notes to the Consolidated Financial Statements For the year ended 31st March, 2024 (` in Crores) For the year ended 31st March, 2023 (` in Crores) 24. Changes in inventories of finished goods, Stock-in-Trade, work-in-progress, intermediates and Biological Assets For the year ended 31st March, 2024, For the year ended 31st March, 2023 Opening inventories and Biological Assets: Finished goods (manufactured): 2268.64, 1794.86 Work-in-progress: 961.08, 732.41 Stock-in-Trade (goods purchased for resale): 760.37, 1181.11 Intermediates - Tissue paper and Paperboards: 115.09, 79.89 Biological Assets: 142.97, 109.44 Less: Closing Inventories and Biological Assets: Finished goods (manufactured): 2297.12, 2268.64 Work-in-progress: 1334.72, 961.08 Stock-in-Trade (goods purchased for resale): 1048.58, 760.37 Intermediates - Tissue paper and Paperboards: 95.73, 115.09 Biological Assets: 150.00, 142.97 Less: Effects of foreign exchange fluctuation taken to foreign currency translation reserve: (89.31), 8.15 TOTAL: (588.69), (358.59) SECTION: 25. Employee benefits expense For the year ended 31st March, 2024, For the year ended 31st March, 2023 Salaries and wages: 5352.94, 4885.49 Contribution to Provident and other funds: 334.15, 291.46 Share based payments to employees [Includes cash-settled share based payments ` 33.08 Crores (2023 - ` 214.31 Crores)]: 140.38, 274.72 Staff welfare expenses: 328.21, 302.60 TOTAL: 6155.68, 5754.27 Less: Recoveries made / reimbursements received: 21.33, 18.05 TOTAL: 6134.35, 5736.22 Refer Note 29(xii) and 29(xiii) SECTION: Notes to the Consolidated Financial Statements For the year ended 31st March, 2024 (` in Crores) For the year ended 31st March, 2023 (` in Crores) 26. Finance costs Interest expense: – On Lease liabilities: 21.97, 20.26 – On financial liabilities measured at amortised cost: 9.00, 9.70 – Others (to statutory authorities etc.): 14.99, 13.24 TOTAL: 45.96, 43.20 SECTION: 27. Other expenses ``` ``` SECTION: Financial Data Overview Power and fuel: 1120.25, 1232.34 Consumption of stores and spare parts: 453.10, 454.75 Contract processing charges: 1120.30, 1013.39 Rent: 305.29, 266.46 Rates and taxes: 259.81, 165.55 Insurance: 179.54, 171.24 Repairs: - Buildings: 120.42, 108.62 - Machinery: 351.26, 334.48 - Others: 95.96, 86.08 Maintenance and upkeep: 370.54, 329.03 Outward freight and handling charges: 1617.89, 1680.39 Warehousing charges: 286.22, 265.80 Advertising / Sales promotion: 1439.45, 1173.21 Market research: 196.50, 156.35 Design and product development: 45.65, 48.37 Hotel reservation / Marketing expenses: 69.90, 58.72 Retail accessories: 224.97, 226.15 Brokerage and discount - sales: 14.78, 17.82 Commission to selling agents: 22.12, 21.26 Doubtful and bad debts: 14.81, 5.96 Doubtful and bad advances, loans and deposits: 24.61, 0.75 Bank and credit card charges: 34.10, 34.57 Information technology services: 268.31, 233.26 Travelling and conveyance: 434.29, 370.72 Training and development: 31.29, 28.11 Legal expenses: 37.42, 41.14 Consultancy / Professional fees: 694.67, 629.89 Postage, telephone etc.: 30.92, 31.77 Printing and stationery: 19.61, 17.87 (Gain) / Loss on sale of property, plant and equipment - Net: (55.89), 4.76 Loss on sale of stores and spare parts - Net: 2.09, 1.45 Miscellaneous expenses: 1414.91, 1319.67 TOTAL: 11245.09, 10529.93 SECTION: Notes to the Consolidated Financial Statements SECTION: For the year ended 31st March, 2024 (` in Crores) SECTION: For the year ended 31st March, 2023 (` in Crores) SECTION: 28. Income tax expenses SECTION: A. Amount recognised in profit or loss Current tax: - Income tax for the year: 6627.49, 6449.33 - Adjustments / (credits) related to previous years - Net: (462.22), 1.57 - Total current tax: 6165.27, 6450.90 Deferred tax: - Deferred tax for the year: 233.83, 1.78 - Adjustments / (credits) related to previous years - Net: (8.24), (11.66) - MAT credit entitlement: (2.34), (2.62) - Total deferred tax: 223.25, (12.50) TOTAL: 6388.52, 6438.40 **SECTION: B.
Amount recognised in other comprehensive income The tax (charge) / credit arising on income and expenses recognised in other comprehensive income is as follows: SECTION: On items that will not be reclassified to profit or loss Remeasurement gains / (losses) on defined benefit plans: 5.21, 5.72 Related to designated portion of hedging instruments in cash flow hedges: 2.63, (5.34) Equity instruments through other comprehensive income: (276.37), - TOTAL: (268.53), 0.38 SECTION: On items that will be reclassified to profit or loss Related to designated portion of hedging instruments in cash flow hedges: (4.26), 13.19 Debt instruments through other comprehensive income: (4.53), 8.75 TOTAL: (8.79), 21.94 SECTION: TOTAL TOTAL: (277.32), 22.32 SECTION: C. Amount recognised directly in equity The income tax (charged) / credited directly to equity during the year is as follows: SECTION: Deferred tax Arising on gains / (losses) of hedging instruments in cash flow hedges transferred to the initial carrying amounts of hedged items: (2.74), 2.62 SECTION: TOTAL TOTAL: (2.74), 2.62 SECTION: D. Reconciliation of effective tax rate** The income tax expense for the year can be reconciled to the accounting profit as follows: Profit before tax: 27139.88, 25915.12 Income tax expense calculated @ 25.168% (2023: 25.168%): 6830.59, 6522.31 Effect of tax relating to uncertain tax positions: 39.39, 26.72 Effect of different tax rate on certain items: (118.92), (165.89) Difference in tax rates of subsidiary companies: 53.09, 45.95 Effect of income not taxable: (73.46), (85.04) Other differences: 125.79, 98.34 Total: 6856.48, 6442.39 Adjustments recognised in the current year in relation to the current tax of prior years: (467.96), (3.99) Income tax recognised in profit or loss: 6388.52, 6438.40 The tax rate of 25.168% (22% + surcharge @ 10% and cess @ 4%) used for the year 2023-24 and 2022-23 is the corporate tax rate applicable on taxable profits under the Income-tax Act, 1961. The Group has reassessed its provisions relating to uncertain tax positions for earlier years based on a favourable order of the Honʼble Supreme Court received during the year. This has resulted in a credit of ` 468.44 Crores in the Current Tax expense for the year ended 31st March, 2024. SECTION: 29. Additional Notes to the Consolidated Financial Statements (i) The Board of Directors of the Company at its meeting held on August 14, 2023 has, subject to necessary approvals, approved a Scheme of Arrangement amongst ITC Limited (‘Demerged Company’) and ITC Hotels Limited (‘Resulting Company’) and their respective shareholders and creditors under Section 230 to 232 read with the other applicable provisions of the Companies Act, 2013 (‘Scheme’). The Scheme, inter alia, provides for demerger of the Demerged Undertaking (as defined in the Scheme) comprising the Hotels Business of the Demerged Company into the Resulting Company on a going concern basis and the consequent issuance of Equity Shares by the Resulting Company to all the shareholders of the Demerged Company as per the Share Entitlement Ratio i.e., for every 10 Ordinary Shares of face and paid-up value of ` 1/- each held in the Demerged Company, 1 Equity Share of face and paid-up value of ` 1/- each of the Resulting Company, and in accordance with Section 2(19AA) read with other relevant provisions of the Income-tax Act, 1961. The Scheme shall be effective from the Appointed Date and shall be operative from the Effective Date. The Scheme is subject to requisite approvals, including approval of the National Company Law Tribunal, Kolkata Bench. Accordingly, no accounting effect in respect of the Scheme has been given in these Financial Statements. Further, expenses aggregating ` 7.57 Crores incurred during the year in relation to the said demerger have been disclosed under ‘Exceptional Items’.
(ii) Earnings per share: (a) Profit for the year attributable to owners of the parent (` in Crores): 20458.78, 19191.66 (b) Weighted average number of Ordinary shares outstanding for the purpose of basic earnings per share: 12,46,10,58,425, 12,38,15,12,709 (c) Effect of potential Ordinary shares on Employee Stock Options outstanding: 2,80,92,231, 3,28,14,400 (d) Weighted average number of Ordinary shares in computing diluted earnings per share [(b) + (c)]: 12,48,91,50,656, 12,41,43,27,109 (e) Earnings per share on profit for the year (Face Value ` 1.00 per share): - Basic [(a) / (b)]: ` 16.42, ` 15.50 - Diluted [(a) / (d)]: ` 16.38, ` 15.46 (iii) (a) The subsidiaries (which along with ITC Limited, the parent, constitute the Group) considered in the preparation of these Consolidated Financial Statements are: Name, Country of Incorporation, Percentage of ownership interest as at 31st March, 2024, Percentage of ownership interest as at 31st March, 2023 - ITC Infotech India Limited, India, 100, 100 - ITC Infotech Limited@, UK, 100, 100 - ITC Infotech (USA), Inc.@, USA, 100, 100 - Indivate Inc., USA, 100, 100 - ITC Infotech Do Brasil LTDA.@, Brazil, 100, 100 - ITC Infotech Malaysia SDN. BHD.@, Malaysia, 100, 100 - ITC Infotech France SAS@, France, 100, 100 - ITC Infotech GmbH@, Germany, 100, 100 - ITC Infotech de Mexico, S.A. de C.V.@ (w.e.f. 17.04.2023), Mexico, 100, – - ITC Infotech Arabia Limited@ (w.e.f. 17.12.2023), Saudi Arabia, 100, – SECTION: 29. Additional Notes to the Consolidated Financial Statements (Contd.) Name, Country of Incorporation, Percentage of ownership interest as at 31st March, 2024, Percentage of ownership interest as at 31st March, 2023 - Surya Nepal Private Limited, Nepal, 59, 59 - Surya Nepal Ventures Private Limited (a 100% subsidiary of Surya Nepal Private Limited w.e.f. 3rd July 2023), Nepal, 59, – - Technico Agri Sciences Limited, India, 100, 100 - Technico Pty Limited, Australia, 100, 100 - Technico Technologies Inc. (a subsidiary of Technico Pty Limited), Canada, 100, 100 - Technico Asia Holdings Pty Limited (a 100% subsidiary of Technico Pty Limited), Australia, 100, 100 - Technico Horticultural (Kunming) Co. Limited (a 100% subsidiary of Technico Asia Holdings Pty Limited), China, 100, 100 - Srinivasa Resorts Limited, India, 68, 68 - Fortune Park Hotels Limited, India, 100, 100 - Landbase India Limited, India, 100, 100 - Bay Islands Hotels Limited, India, 100, 100 - WelcomHotels Lanka (Private) Limited, Sri Lanka, 100, 100 - Russell Credit Limited, India, 100, 100 - Greenacre Holdings Limited (a 100% subsidiary of Russell Credit Limited), India, 100, 100 - Wimco Limited, India, 100, 100 - Gold Flake Corporation Limited, India, 100, 100 - ITC Integrated Business Services Limited, India, 100, 100 - MRR Trading & Investment Company Limited (a 100% subsidiary of ITC Integrated Business Services Limited), India, 100, 100 - North East Nutrients Private Limited, India, 76, 76 - Prag Agro Farm Limited, India, 100, 100 - Pavan Poplar Limited, India, 100, 100 - ITC IndiVision Limited, India, 100, 100 - ITC Fibre Innovations Limited, India, 100, 100 - ITC Hotels Limited (w.e.f. 28.07.2023), India, 100, – The financial statements of all subsidiaries, considered in the Consolidated Financial Statements, are drawn up to 31st March other than for Surya Nepal Private Limited and Surya Nepal Ventures Private Limited where it is up to 13th March, based on the local laws of Nepal. SECTION: (b) Interests in Joint Ventures: The Group’s interests in jointly controlled entities (incorporated Joint Ventures) are: Name, Country of Incorporation, Percentage of ownership interest as at 31st March, 2024, Percentage of ownership interest as at 31st March, 2023 - Espirit Hotels Private Limited [Refer Note 29(viii)], India, –, 26 - Logix Developers Private Limited [Refer Note 29(ix)], India, 27.90, 27.90 - ITC Filtrona Limited (Formerly known as ITC Essentra Limited) (a joint venture of Gold Flake Corporation Limited), India, 50, 50 - Maharaja Heritage Resorts Limited, India, 50, 50 The financial statements of all the Joint Ventures, considered in the Consolidated Financial Statements, are drawn up to 31st March.
SECTION: (c) Investments in Associates: The Group’s Associates are: Name, Country of Incorporation, Percentage of ownership interest as at 31st March, 2024, Percentage of ownership interest as at 31st March, 2023 - Gujarat Hotels Limited, India, 45.78, 45.78 - International Travel House Limited, India, 48.96, 48.96 - Russell Investments Limited, India, 25.43, 25.43 - Divya Management Limited, India, 33.33, 33.33 - Antrang Finance Limited, India, 33.33, 33.33 - ATC Limited (an associate of Gold Flake Corporation Limited), India, 47.50, 47.50 - Delectable Technologies Private Limited, India, 39.32#, 33.42# - Mother Sparsh Baby Care Private Limited, India, 26.50#, 22.00# - Sproutlife Foods Private Limited (w.e.f. 04.05.2023) [Refer Note 29(x)], India, 44.74#, – associates of Russell Credit Limited SECTION: on a fully diluted basis The financial statements of all Associates, considered in the Consolidated Financial Statements, are drawn up to 31st March. SECTION: (d) These Consolidated Financial Statements are based, in so far as they relate to amounts included in respect of subsidiaries, associates and joint ventures on the audited financial statements prepared for consolidation in accordance with the requirements of Indian Accounting Standard - 110 (Ind AS 110) on “Consolidated Financial Statements” and Indian Accounting Standard - 28 (Ind AS 28) on “Investments in Associates and Joint Ventures” by each of the included entities other than in respect of a joint venture Logix Developers Private Limited which has been considered on the basis of financial statements as certified by Logix Developers Private Limited’s management and provided to the Company. SECTION: 29. Additional Notes to the Consolidated Financial Statements (Contd.) SECTION: (iv) Contingent liabilities and commitments: SECTION: (a) Contingent liabilities: Claims against the Group not acknowledged as debts: ` 1077.71 Crores (2023 - ` 945.12 Crores), including interest on claims, where applicable, estimated to be ` 324.08 Crores (2023 - ` 292.26 Crores), including share of associates ` 0.15 Crore (2023 - ` 0.15 Crore). These comprise: - Excise duty, VAT / sales taxes, GST and other indirect taxes claims disputed by the Group relating to issues of applicability and classification aggregating ` 679.10 Crores (2023 - ` 604.63 Crores), including interest on claims, where applicable, estimated to be ` 294.54 Crores (2023 - ` 265.04 Crores), including share of associates ` 0.12 Crore (2023 - ` 0.12 Crore). - Local Authority taxes / cess / royalty on property, utilities etc. claims disputed by the Group relating to issues of applicability and determination aggregating ` 266.56 Crores (2023 - ` 241.71 Crores), including interest on claims, where applicable, estimated to be ` 18.72 Crores (2023 - ` 15.09 Crores), including share of associates ` 0.03 Crore (2023 - ` 0.03 Crore). - Third party claims arising from disputes relating to contracts aggregating ` 41.27 Crores (2023 - ` 31.79 Crores), including interest on claims, where applicable, estimated to be ` 0.29 Crore (2023 - ` 0.17 Crore). - Other matters aggregating ` 90.78 Crores (2023 - ` 66.99 Crores), including interest on other matters, where applicable, estimated to be ` 10.53 Crores (2023 - ` 11.96 Crores). ``` ``` SECTION: Surya Nepal Private Limited (SNPL) Tax Proceedings In respect of Surya Nepal Private Limited (SNPL), Excise, Income Tax, and VAT authorities issued Show Cause Notices (SCNs) and raised demands to recover taxes for different years based on theoretical production of cigarettes. The authorities applied an input-output ratio allegedly submitted by SNPL in the year 1990-91, leading to demands for tax/duty on the differential production/turnover. This occurred despite SNPL’s cigarette factory being under the physical control of the Excise authorities, with production duly accounted for and certified. The Revenue Authorities first raised excise demands for the financial years 1993-94 and 1994-95, claiming that SNPL could have produced more cigarettes according to the input-output ratio from 1990-91. SNPL challenged these demands before the Hon’ble Supreme Court of Nepal through a writ petition. The Division Bench of the Hon’ble Supreme Court decided in favor of SNPL, rejecting the basis of theoretical production. The Ministry of Finance of Nepal filed a review petition before the Full Bench of the Hon’ble Supreme Court, which upheld the Division Bench's judgment on October 29, 2009. Similar demands were raised for other financial years, including: - Excise Demands for FY 1998-99 to FY 2002-03 - Income Tax Demand for FY 2001-02 These were also challenged by SNPL, and the Court allowed all writ petitions, setting aside the demands.
The Inland Revenue Department decided administrative review petitions in favor of SNPL, setting aside Value Added Tax demands for FY 2001-02 and 2007-08, and Income Tax demand for FY 2005-06. During the pendency of the review petition, the Revenue Authorities raised demands and issued SCNs regarding theoretical production for different years, which were challenged by SNPL through writ petitions between 2007 and 2010: 1. Excise demand letters for ₹ 17.38 Crores (NRs. 27.80 Crores) for FY 2003-04 to 2006-07. 2. Value Added Tax (VAT) demand letters for ₹ 10.93 Crores (NRs. 17.49 Crores) for FY 2002-03 to 2006-07. 3. Income Tax demand letters for ₹ 13.45 Crores (NRs. 21.52 Crores) for FY 2002-03 and 2003-04. SNPL’s writ petitions regarding these tax demands and SCNs were disposed of by the Hon’ble Supreme Court on April 15, 2021, holding that SNPL should avail the alternate remedy by way of appeal to the Inland Revenue Department (IRD). The Administrative Review Petitions related to these demands are currently pending with the IRD. SECTION: 29. Additional Notes to the Consolidated Financial Statements (Contd.) The Management considers that all the demands listed above have no legal or factual basis; accordingly, the Management is of the view that there is no liability likely to arise, particularly since the underlying issues have been settled by the Hon’ble Supreme Court of Nepal in favor of SNPL. It is not practicable for the Group to estimate the closure of these issues and the consequential timings of cash flows, if any. - (b) Uncalled liability on partly paid-up shares and other investments is ₹ 25.72 Crores (2023 - ₹ 35.56 Crores). - (c) Commitments: Estimated amount of contracts remaining to be executed on capital accounts and not provided for are ₹ 1189.36 Crores (2023 - ₹ 2113.07 Crores) for the Group, which includes share of joint ventures ₹ 5.14 Crores (2023 - ₹ 8.52 Crores). - (v) Research and Development expenses for the year amount to ₹ 170.47 Crores (2023 - ₹ 161.36 Crores). - (vi) The Group has adopted Indian Accounting Standard-19 (Ind AS 19) on ‘Employee Benefits’. These Consolidated Financial Statements include the obligations as per this standard, except for subsidiaries incorporated outside India, which have determined the valuation/provision for employee benefits as per their respective countries' requirements. The management considers the impact of this deviation to be not material. SECTION: Description of Plans The Group makes contributions to both Defined Benefit and Defined Contribution Plans for qualifying employees. These Plans are administered through approved Trusts, which operate in accordance with the Trust Deeds, Rules, and applicable Statutes. The Trusts are managed by Trustees who provide strategic guidance regarding the management of their investments and liabilities and periodically review their performance. Provident Fund and Pension Benefits are funded, Gratuity Benefits are both funded and unfunded; Leave Encashment Benefits are unfunded. The Defined Benefit Pension Plans are based on employees’ pensionable remuneration and length of service. Under the Provident Fund, Gratuity, and Leave Encashment Schemes, employees are entitled to receive lump sum benefits. SECTION: (a) Defined Benefit Plans As per Actuarial Valuations as of March 31, 2024, and recognized in the financial statements regarding Employee Benefit Schemes, the liabilities arising in the Defined Benefit Schemes are determined based on the advice of independent, professionally qualified actuaries, using the projected unit credit method at year-end. The Group makes regular contributions to these Defined Benefit Plans, with additional contributions made as required based on actuarial valuation. SECTION: Risk Management The Defined Benefit Plans expose the Group to risks of actuarial deficit arising from investment risk, interest rate risk, and salary cost inflation risk. - Investment Risk: This may arise from volatility in asset values due to market fluctuations and impairment of assets due to credit losses. These Plans primarily invest in debt instruments such as Government securities and highly rated corporate bonds, the valuation of which is inversely proportional to interest rate movements. - Interest Rate Risk: The present value of Defined Benefit Plans liability is determined using the discount rate based on market yields prevailing at the end of the reporting period on Government securities. A decrease in yields will increase fund liabilities and vice-versa. - Salary Cost Inflation Risk: The present value of the Defined Benefit Plan liability is calculated with reference to future salaries of participants under the Plan. An increase in salary might lead to higher liabilities. These Plans have a balanced mix of investments to manage the above risks.
The investment strategy is designed based on the interest rate scenario, liquidity needs of the Plans, and investment patterns prescribed under various statutes. The Trustees regularly monitor the funding and investments of these Plans. Risk mitigation systems are in place to ensure the health of the portfolio is regularly reviewed, and investments do not pose significant risk of impairment. Periodic audits are conducted to ensure the adequacy of internal controls. Pension obligations of employees are secured by purchasing annuities, thereby de-risking the Plans from future payment obligations. SECTION: 29. Additional Notes to the Consolidated Financial Statements (Contd.) For the year ended March 31, 2024 (₹ in Crores), For the year ended March 31, 2023 (₹ in Crores): \| Component \| Pension \| Gratuity \| Leave Encashment \| Pension \| Gratuity \| Leave Encashment \| \|-----------\|---------\|----------\|------------------\|---------\|----------\|------------------\| \| I Components of Employer Expense – Recognised in the Statement of Profit and Loss \| \| \| \| \| \| \| \| 1 Current Service Cost \| 39.35 \| 42.82 \| 0.54 \| 18.78 \| 43.12 \| 39.58 \| \| 2 Past Service Cost \| 2.93 \| – \| 0.05 \| 0.06 \| – \| – \| \| 3 Net Interest Cost \| (3.62) \| (1.47) \| 0.49 \| 12.55 \| (1.32) \| (1.42) \| \| 4 Total expense recognised in the Statement of Profit and Loss \| 38.66 \| 41.35 \| 1.08 \| 31.39 \| 41.80 \| 38.16 \| \| – Remeasurements recognised in Other Comprehensive Income \| \| \| \| \| \| \| \| 5 Return on plan assets (excluding amounts included in net interest cost) \| (23.16) \| (3.61) \| – \| – \| 14.50 \| 1.22 \| \| 6 Effect of changes in demographic assumptions \| 1.65 \| 0.94 \| 0.34 \| 0.49 \| – \| – \| \| 7 Effect of changes in financial assumptions \| 25.89 \| 18.64 \| 0.14 \| 6.37 \| (14.26) \| (14.79) \| \| 8 Changes in asset ceiling (excluding interest income) \| – \| – \| – \| – \| – \| – \| \| 9 Effect of experience adjustments \| (30.13) \| 22.27 \| 0.09 \| 0.82 \| (1.24) \| 32.63 \| \| 10 Total re-measurements included in Other Comprehensive Income \| (25.75) \| 38.24 \| 0.57 \| 7.68 \| (1.00) \| 19.06 \| \| 11 Total defined benefit cost recognised in the Statement of Profit and Loss and Other Comprehensive Income (4+10) \| 12.91 \| 79.59 \| 1.65 \| 39.07 \| 40.80 \| 57.22 \| The current service cost, past service cost, and net interest cost for the year, as applicable, pertaining to Pension and Gratuity expenses have been recognized in “Contribution to Provident and other funds” and Leave Encashment in “Salaries and wages” under Note 25. The remeasurements of the net defined benefit liability are included in Other Comprehensive Income. \| II Actual Returns \| 92.17 \| 41.22 \| – \| – \| 46.39 \| 30.36 \| \| III Net Asset / (Liability) recognised in Balance Sheet \| \| \| \| \| \| \| \| 1 Present Value of Defined Benefit Obligation \| 947.48 \| 576.05 \| 7.70 \| 197.25 \| 925.28 \| 509.40 \| \| 2 Fair Value of Plan Assets \| 955.52 \| 525.06 \| – \| – \| 888.56 \| 480.39 \| \| 3 Status [Surplus / (Deficit)] \| 8.04 \| (50.99) \| (7.70) \| (197.25) \| (36.72) \| (29.01) \| \| 4 Restrictions on Asset Recognised \| – \| – \| – \| – \| – \| – \| \| 5 Net (Liability) recognised in Balance Sheet \| (22.80) \| (51.38) \| (7.70) \| (197.25) \| (42.48) \| (29.01) \| \| a. Current \| (1.23) \| (47.14) \| (1.15) \| (30.33) \| (25.57) \| (25.06) \| \| b. Non-Current \| (21.57) \| (4.24) \| (6.55) \| (166.92) \| (16.91) \| (3.95) \| \| 6 Net Asset recognised in Balance Sheet \| 30.84 \| 0.39 \| – \| – \| 5.76 \| – \| \| a. Current \| 21.30 \| – \| – \| – \| 5.76 \| – \| \| b. Non-Current \| 9.54 \| 0.39 \| – \| – \| – \| – \| **SECTION: 29.
Additional Notes to the Consolidated Financial Statements (Contd.) For the year ended March 31, 2024 (₹ in Crores), For the year ended March 31, 2023 (₹ in Crores): \| IV Change in Defined Benefit Obligation (DBO) \| \| \| \| \| \| \| \| 1 Present Value of DBO at the beginning of the year \| 925.28 \| 509.40 \| 6.96 \| 176.54 \| 929.62 \| 478.30 \| \| 2 Current Service Cost \| 39.35 \| 42.82 \| 0.54 \| 18.78 \| 43.12 \| 39.58 \| \| 3 Past Service Cost \| 2.93 \| – \| 0.05 \| 0.06 \| – \| – \| \| 4 Interest Cost \| 65.39 \| 36.14 \| 0.49 \| 12.55 \| 59.57 \| 30.16 \| \| 5 Re-measurement Gains / (Losses): \| \| \| \| \| \| \| \| a. Effect of changes in demographic assumptions \| 1.65 \| 0.94 \| 0.34 \| 0.49 \| – \| – \| \| b. Effect of changes in financial assumptions \| 25.89 \| 18.64 \| 0.14 \| 6.37 \| (14.26) \| (14.79) \| \| c. Changes in asset ceiling (excluding interest income) \| – \| – \| – \| – \| – \| – \| \| d. Effect of experience adjustments \| (30.13) \| 22.27 \| 0.09 \| 0.82 \| (1.24) \| 32.63 \| \| 6 Curtailment Cost / (Credits) \| – \| – \| – \| – \| – \| – \| \| 7 Settlement Cost / (Credits) \| – \| – \| – \| – \| – \| – \| \| 8 Liabilities assumed in business combination \| – \| – \| – \| – \| – \| – \| \| 9 Effects of transfer In / (Out) \| 0.01 \| 0.02 \| – \| – \| 15.56 \| 0.53 \| \| 10 Benefits Paid \| (82.89) \| (54.18) \| (0.91) \| (18.36) \| (107.09) \| (57.01) \| \| 11 Present Value of DBO at the end of the year \| 947.48 \| 576.05 \| 7.70 \| 197.25 \| 925.28 \| 509.40 \| As at March 31, 2024 (₹ in Crores), As at March 31, 2023 (₹ in Crores): \| V Best Estimate of Employers’ Expected Contribution for the next year \| – Pension \| 42.02 \| – Gratuity \| 106.85 \| \| VI Change in Fair Value of Assets \| 888.56 \| 480.39 \| – \| – \| 916.94 \| 457.31 \| \| 1 Plan Assets at the beginning of the year \| 888.56 \| 480.39 \| – \| – \| 916.94 \| 457.31 \| \| 2 Assets acquired in Business Combination \| – \| – \| – \| – \| – \| – \| \| 3 Interest Income \| 69.01 \| 37.61 \| – \| – \| 60.89 \| 31.58 \| \| 4 Re-measurement Gains / (Losses) on plan assets \| 23.16 \| 3.61 \| – \| – \| (14.50) \| (1.22) \| \| 5 Actual Group Contributions \| 57.75 \| 57.63 \| – \| – \| 32.38 \| 49.73 \| \| 6 Benefits Paid \| (82.89) \| (54.18) \| – \| – \| (107.09) \| (57.01) \| \| 7 Effects of transfer In / (Out) \| (0.07) \| – \| – \| – \| (0.06) \| – \| ``` ``` SECTION: Plan Assets at the end of the year As at 31st March, 2024, and As at 31st March, 2023: - 2024: 955.52 - 2023: 525.06 SECTION: VII. Actuarial Assumptions 1. Pension: - Discount Rate: 7.00% (2024), 7.50% (2023) 2. Gratuity: - Discount Rate: 7.00% (2024), 7.50% (2023) 3. Leave Encashment: - Discount Rate: 7.00% (2024), 7.50% (2023) The estimates of future salary increases are generally between 4% to 6% for the Company, considering inflation, seniority, promotion, and other relevant factors. SECTION: VIII. Major Category of Plan Assets as a % of the Total Plan Assets** \| Category \| 2024 \| 2023 \| \|---\|---\|---\| \| 1. Government Securities / Special Deposit with RBI \| 14.94% \| 14.86% \| \| 2. High Quality Corporate Bonds \| 11.39% \| 10.25% \| \| 3. Insurer / Citizen Investment Trust Managed Funds* \| 62.50% \| 66.71% \| \| 4. Mutual Funds \| 6.73% \| 3.92% \| \| 5. Cash and Cash Equivalents \| 4.44% \| 4.26% \| \| 6. Term Deposits \| – \| – \| In the absence of detailed information regarding plan assets funded with Insurance Companies, the composition of each major category of plan assets has not been disclosed. *SECTION: IX.
Basis used to determine the Expected Rate of Return on Plan Assets The expected rate of return on plan assets is based on the current portfolio of assets, investment strategy, and market scenario. The plan assets are well diversified to protect capital and optimize returns within acceptable risk parameters. SECTION: X. Net Asset / (Liability) recognised in Balance Sheet (including experience adjustment impact) \| Description \| 2024 \| 2023 \| \|---\|---\|---\| \| 1. Present Value of Defined Benefit Obligation \| 955.52 \| 525.06 \| \| 2. Status [Surplus / (Deficit)] \| 8.04 \| (50.99) \| \| 3. Experience Adjustment of Plan Assets [Gain / (Loss)] \| 23.16 \| 3.61 \| \| 4. Experience Adjustment of Obligation [(Gain) / Loss] \| (30.13) \| 22.27 \| SECTION: XI. Sensitivity Analysis The Sensitivity Analysis below has been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant. \| Assumption \| DBO as at 31st March, 2024 \| DBO as at 31st March, 2023 \| \|---\|---\|---\| \| 1. Discount Rate + 100 basis points \| 1632.05 \| 1530.08 \| \| 2. Discount Rate - 100 basis points \| 1833.95 \| 1715.52 \| \| 3. Salary Increase Rate + 1% \| 1825.64 \| 1708.10 \| \| 4. Salary Increase Rate – 1% \| 1637.60 \| 1533.68 \| SECTION: Maturity Analysis of the Benefit Payments \| Year \| 2024 \| 2023 \| \|---\|---\|---\| \| 1 \| 231.15 \| 244.36 \| \| 2 \| 287.00 \| 236.41 \| \| 3 \| 227.42 \| 219.34 \| \| 4 \| 157.08 \| 210.04 \| \| 5 \| 123.94 \| 145.67 \| \| Next 5 Years \| 637.88 \| 595.80 \| Amounts towards Defined Contribution Plans have been recognized under “Contribution to Provident and other funds” in Note 25: - ₹ 254.14 Crores (2023 - ₹ 211.50 Crores). SECTION: 29.
Additional Notes to the Consolidated Financial Statements (Contd.) (vii) Additional information as required by Paragraph 2 of the General Instructions for Preparation of Consolidated Financial Statements to Schedule III to the Companies Act, 2013: \| Name of the Entity \| As a % of Consolidated Net Assets \| Amount (₹ in Crores) \| As % of Consolidated Profit or (Loss) \| Amount (₹ in Crores) \| As % of Consolidated Other Comprehensive Income \| Amount (₹ in Crores) \| As % of Consolidated Total Comprehensive Income \| Amount (₹ in Crores) \| \|---\|---\|---\|---\|---\|---\|---\|---\|---\| \| Parent \| ITC Limited \| 88.22% \| 66070.83 \| 93.70% \| 19443.05 \| 77.16% \| 2280.53 \| 91.64% \| 21723.58 \| \| Subsidiary \| Indian Russell Credit Limited \| 1.81% \| 1357.28 \| 0.18% \| 37.82 \| 13.64% \| 403.28 \| 1.86% \| 441.10 \| \| Greenacre Holdings Limited \| 0.09% \| 67.81 \| 0.01% \| 2.82 \| – \| – \| 0.01% \| 2.80 \| \| Wimco Limited \| – \| 1.91 \| (0.01%) \| (1.88) \| – \| (0.05) \| (0.01%) \| (1.93) \| \| Prag Agro Farm Limited \| – \| 0.91 \| – \| – \| – \| – \| – \| – \| \| Pavan Poplar Limited \| – \| 0.27 \| – \| – \| – \| – \| – \| – \| \| Technico Agri Sciences Limited \| 0.22% \| 155.85 \| 0.18% \| 37.81 \| – \| 0.01 \| 0.16% \| 37.82 \| \| Srinivasa Resorts Limited \| 0.10% \| 71.82 \| 0.03% \| 5.51 \| – \| 0.04 \| 0.02% \| 5.55 \| \| Fortune Park Hotels Limited \| 0.05% \| 36.40 \| 0.05% \| 11.22 \| – \| (0.12) \| 0.05% \| 11.10 \| \| Bay Islands Hotels Limited \| 0.03% \| 23.32 \| 0.01% \| 2.70 \| – \| – \| 0.01% \| 2.70 \| \| ITC Infotech India Limited \| 1.54% \| 1153.44 \| 1.77% \| 364.75 \| 0.25% \| 7.44 \| 1.57% \| 372.19 \| \| Gold Flake Corporation Limited \| 0.03% \| 25.11 \| – \| 0.62 \| – \| – \| – \| 0.62 \| \| ITC Integrated Business Services Limited \| 0.01% \| 8.68 \| – \| 0.60 \| – \| – \| – \| 0.60 \| \| MRR Trading & Investment Company Limited \| – \| 0.03 \| – \| 0.01 \| – \| – \| – \| 0.01 \| \| Landbase India Limited \| 0.35% \| 261.72 \| 0.05% \| 10.00 \| – \| – \| 0.04% \| 10.00 \| \| North East Nutrients Private Limited \| 0.11% \| 82.86 \| 0.05% \| 11.32 \| – \| (0.01) \| 0.05% \| 11.31 \| \| ITC IndiVision Limited \| 0.50% \| 373.58 \| (0.15%) \| (30.62) \| – \| – \| (0.13%) \| (30.62) \| SECTION: 29. Additional Notes to the Consolidated Financial Statements (Contd.) (viii) During the year, the Group divested its entire shareholding, i.e., 26.00% of the paid-up share capital, in Espirit Hotels Private Limited, consequent to which Espirit ceased to be a joint venture of the Group. (ix) Under the terms of the Joint Venture Agreement (JVA), Logix Developers Private Limited (LDPL) was to develop a luxury hotel-cum-service apartment complex. However, the JV partner communicated its intention to explore alternative development plans, leading to a deadlock. The Company’s petition regarding the conduct of the JV is currently before the Hon’ble National Company Law Tribunal. (x) During the year, the Group acquired 2,443 Equity Shares and 9,571 Compulsorily Convertible Preference Shares of Sproutlife Foods Private Limited for an aggregate consideration of ₹ 225.00 crores, resulting in a 44.74% shareholding in Sproutlife as of 31st March, 2024. ``` ``` SECTION: Acquisition of Sproutlife** The Group has agreed to acquire 100% of the share capital (on a fully diluted basis) of Sproutlife over a time period of about three to four years from the execution of the transaction documents. Further infusion of ₹ 30 crores will be made through a primary subscription by 31st March, 2025 or such other later date as may be mutually agreed upon, based on pre-agreed pre-money valuation, taking the Group’s shareholding in Sproutlife to 47.5%, on a fully diluted basis. The consideration for acquisition of the balance stake of 52.5% will be determined based on pre-agreed valuation criteria and fulfilment of applicable terms and conditions.
SECTION: Leases as a Lessee The Group’s significant leasing arrangements are in respect of operating leases for land, buildings (comprising licensed properties, residential premises, office premises, stores, warehouses etc.) and plant & equipment. These arrangements generally range between 2 years and 10 years, except for certain land and building leases where the lease term ranges up to 99 years. The lease arrangements have extension/termination options exercisable by either party which may make the assessment of lease term uncertain. While determining the lease term, all facts and circumstances that create an economic incentive to exercise an extension option, or not exercise a termination option are considered. SECTION: Additional Notes to the Consolidated Financial Statements (Contd.) The amount of ROU Assets and Lease Liabilities recognised in the Balance Sheet are disclosed in Note 3G and Note 17A respectively. The total cash outflow for leases for the year is ₹ 448.62 Crores (2023 - ₹ 441.30 Crores) [including payments of ₹ 357.50 Crores (2023 - ₹ 359.11 Crores) in respect of short-term/low-value leases and variable lease payments of ₹ 2.27 Crores (2023 - ₹ 2.73 Crores)]. The sensitivity of variable lease payments and effect of extension/termination options not included in measurement of lease liabilities is not material. SECTION: Undiscounted Maturities of Lease Liabilities The undiscounted maturities of lease liabilities over the remaining lease term is as follows: - Term: Not later than three years, As at 31st March, 2024: 190.25, As at 31st March, 2023: 169.25 - Term: Later than three years and not later than ten years, As at 31st March, 2024: 137.99, As at 31st March, 2023: 125.63 - Term: Later than ten years and not later than twenty-five years, As at 31st March, 2024: 121.35, As at 31st March, 2023: 124.19 - Term: Later than twenty-five years and not later than fifty years, As at 31st March, 2024: 89.22, As at 31st March, 2023: 92.64 - Term: Later than fifty years, As at 31st March, 2024: 22.76, As at 31st March, 2023: 26.39 SECTION: Leases as a Lessor The Group has leased out its investment properties etc. under operating lease for periods ranging up to 5 years. Lease payments are structured with periodic escalations consistent with the prevailing market conditions. There are no variable lease payments. The details of income from such leases are disclosed under Note 3C and Note 23. The Group does not have any risk relating to recovery of residual value of investment properties etc. at the end of leases considering the business requirements and other alternatives. SECTION: Undiscounted Minimum Lease Payments The undiscounted minimum lease payments to be received over the remaining non-cancellable term on an annual basis are as follows: - Term: 1st year, As at 31st March, 2024: 1.32, As at 31st March, 2023: 0.90 - Term: 2nd year, As at 31st March, 2024: 1.15, As at 31st March, 2023: 0.33 - Term: 3rd year, As at 31st March, 2024: 0.66, As at 31st March, 2023: 0.17 - Term: 4th year, As at 31st March, 2024: Nil, As at 31st March, 2023: Nil - Term: 5th year, As at 31st March, 2024: Nil, As at 31st March, 2023: Nil - Term: Beyond Five Years, As at 31st March, 2024: Nil, As at 31st March, 2023: Nil SECTION: Employee Stock Option Schemes Information in respect of Options granted under the Company’s Employee Stock Option Schemes (‘Schemes’): - Sl. No., 1. Date of Shareholders’ approval, 2. Total number of Options approved under the Schemes (Adjusted for Bonus Shares issued in terms of Shareholders’ approval), 3. Vesting Schedule, 4. Pricing Formula, 5. Maximum term of Options granted, 6. Source of Shares, 7. Variation in terms of Options, 8. Method used for accounting of share-based payment plans and effect of employee share based plans on the entity’s profit or loss for the period and on its financial position, 9. Nature and extent of employee share based payment plans that existed during the period including the general terms and conditions of each plan. 1.
ITC Employee Stock Option Scheme - 2006: 22-01-2007, Options equivalent to 37,89,18,503 Ordinary Shares of ₹ 1.00 each, The vesting period for conversion of Options is as follows: On completion of 12 months from the date of grant of the Options: 30% vests, On completion of 24 months from the date of grant of the Options: 30% vests, On completion of 36 months from the date of grant of the Options: 40% vests, The Pricing Formula, as approved by the Shareholders of the Company, is such price, as determined by the Nomination & Compensation Committee, which is no lower than the closing price of the Company’s Share on National Stock Exchange of India Limited (‘the NSE’) on the date of grant, or the average price of the Company’s Share in the six months preceding the date of grant based on the daily closing price on the NSE, or the ‘market price’ as defined from time to time under the Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021. The Options have been granted at ‘market price’ as defined under the aforesaid Regulations. Five years - the exercise period commences from the date of vesting of the Options granted and expires at the end of five years from the date of vesting. Primary, None, The employee compensation cost has been calculated using the fair value method of accounting for Options issued under the Company’s Employee Stock Option Schemes. The employee compensation cost as per fair value method for the financial year 2023-24 is ₹ 108.64 Crores (2023 - ₹ 61.11 Crores), out of which ₹ 107.30 Crores (2023 - ₹ 60.41 Crores) relate to employee benefits expense (Refer Note 25), ₹ 0.60 Crore (2023 - ₹ 0.28 Crore) to property, plant and equipment and ₹ 0.74 Crore (2023 - ₹ 0.42 Crore) for group entities. In addition to the terms and conditions provided in the table under Serial Nos. (3) to (5) hereinbefore, each Option entitles the holder thereof to apply for and be allotted ten Ordinary Shares of the Company of ₹ 1.00 each upon payment of the exercise price during the exercise period. 2. ITC Employee Stock Option Scheme - 2010: 23-07-2010, Options equivalent to 55,60,44,823 Ordinary Shares of ₹ 1.00 each. Weighted average exercise prices and weighted average fair values of Options whose exercise price either equals or exceeds or is less than the market price of the stock: - Weighted average exercise price per Option: ₹ 4530.73 - Weighted average fair value per Option: ₹ 1064.83 Option movements during the year: - a) Options outstanding at the beginning of the year: 2,85,808 (2006), 1,29,23,671 (2010) - b) Options granted during the year: – (2006), 15,16,450 (2010) - c) Options cancelled and lapsed during the year: 955 (2006), 59,989 (2010) - d) Options vested and exercisable during the year (net of Options lapsed and exercised): 43,950 (2006), 8,36,370 (2010) - e) Options exercised during the year: 87,039 (2006), 55,83,334 (2010) - f) Number of Ordinary Shares of ₹ 1.00 each arising as a result of exercise of Options during the year: 8,70,390 (2006), 5,58,33,340 (2010) - g) Options outstanding at the end of the year (a+b-c-e): 1,97,814 (2006), 87,96,798 (2010) - h) Options exercisable at the end of the year: 1,71,284 (2006), 58,80,098 (2010) - i) Money realised by exercise of the Options during the year (` in Crores): 20.74 (2006), 1422.09 (2010) Summary of the status of Options: - Particulars, As at 31st March, 2024, As at 31st March, 2023 - No. of Options, Weighted Average Exercise Prices (₹) - Outstanding at the beginning of the year: 1,32,09,479, 2655.20 - Add: Granted during the year: 15,16,450, 4530.73 - Less: Lapsed during the year: 60,944, 2739.44 - Less: Exercised during the year: 56,70,373, 2544.51 - Outstanding at the end of the year: 89,94,612, 3040.61 - Options exercisable at the end of the year: 60,51,382, 2657.61 Weighted average share price of Shares arising upon exercise of Options: The weighted average share price of Shares, arising upon exercise of Options during the year ended 31st March, 2024 was ₹ 455.45 (2023 - ₹ 315.92). This was based on the closing market price on NSE on the date of exercise of Options (i.e. the date of allotment of shares by the Securityholders Relationship Committee). Summary of Options outstanding, scheme-wise: - Particulars, As at 31st March, 2024, As at 31st March, 2023 - No.
of Options, Range of Exercise Prices (₹), Weighted average remaining contractual life - ITC Employee Stock Option Scheme - 2006: 1,97,814, 1698.00 – 3463.50, 3.19 - ITC Employee Stock Option Scheme - 2010: 87,96,798, 1698.00 – 4534.50, 3.37 Methodology for determination of expected volatility: The volatility used in the Black Scholes Option Pricing model is the annualised standard deviation of the continuously compounded rates of return on the stock over a period of time. The period considered for the working is commensurate with the expected life of the Options and is based on the daily volatility of the Company’s stock price on NSE. The Company has incorporated the early exercise of Options by calculating expected life on past exercise behaviour. There are no market conditions attached to the grant and vest. Information in respect of Stock Appreciation Linked Reward Plan: - Nature and extent of Stock Appreciation Linked Reward Plan that existed during the year along with general terms and conditions: ITC Employee Cash Settled Stock Appreciation Linked Reward Plan (ITC ESAR Plan). Under the ITC ESAR Plan, the eligible employees receive cash on vesting of SAR units, equivalent to the difference between the grant price and the market price of the share on vesting of SAR units subject to the terms and conditions specified in the Plan. - Settlement Method: Cash – Settled - Vesting period and maximum term of SAR granted: Over a period of five years from the date of grant in accordance with the Plan. - Method used to estimate the fair value of SAR granted: Black Scholes Option Pricing model. The said model considers inputs such as Risk-free interest rate, Expected life, Expected volatility, Expected dividend, Market price etc. The number of SAR units outstanding as at 31st March, 2024 is 9,31,606 (2023- 25,00,251) and the weighted average fair value at measurement date is ₹ 1103.96 (2023 - ₹ 980.89) per SAR unit. - Total cost recognised in the profit or loss: The cost has been calculated using the fair value method of accounting for SAR units issued under the ITC ESAR Plan. The employee compensation cost as per fair value method for the financial year 2023-24 is ₹ 33.49 Crores (2023 - ₹ 216.12 Crores); out of which, ₹ 33.08 Crores (2023 - ₹ 214.31 Crores) relate to employee benefits expense (Refer Note 25), ₹ 0.05 Crore (2023 - ₹ 0.04 Crore) to property, plant and equipment and ₹ 0.36 Crore (2023 - ₹ 1.77 Crores) for group entities. The amount carried in the Balance Sheet as a non-current financial liability is ₹ 14.13 Crores (2023 - ₹ 71.35 Crores) and as current financial liability is ₹ 73.27 Crores (2023 - ₹ 122.30 Crores) (Refer Note 17B). Amount required to be spent by the Group during the year as per Section 135 read with Section 198 of the Companies Act, 2013: ₹ 417.74 Crores (2023 - ₹ 377.32 Crores) being 2% of the average Net Profit of the respective companies. Expenditure incurred during the year is ₹ 418.39 Crores (2023 - ₹ 377.93 Crores) comprising employee benefits expense of ₹ 15.52 Crores (2023 - ₹ 14.33 Crores) and other expenses of ₹ 402.87 Crores (2023 - ₹ 363.60 Crores), of which ₹ 30.60 Crores (2023 - ₹ 62.71 Crores) is accrued for payment as on 31st March, 2024. Such CSR expenditure does not include any spends on construction/acquisition of assets. Amount available for set off in succeeding financial years is ₹ 1.93 Crores (2023 - ₹ 1.35 Crores). CSR activities undertaken during the year pertain to: poverty alleviation; promoting education and skill development; promoting healthcare including preventive healthcare; providing sanitation and drinking water; ensuring environmental sustainability; enabling climate resilience; rural development projects; creating livelihoods for people (especially those from disadvantaged sections of society); protection of national heritage, art and culture; preserving and promoting music; promoting sports; conducting research in science, technology, engineering and medicine aimed at promoting Sustainable Development Goals (SDGs) and providing relief and assistance to victims of disasters and calamities.
Trade Payables ageing schedule: Outstanding for following periods from due date of payment as at 31st March, 2024: - Total: 4797.83 - MSME: 32.24, Not Due: 32.24 - Others: 662.21, Less than 1 year: 77.78, 1-2 years: 1.72, 2-3 years: 0.01 - Disputed Dues - Others: 0.28 - SUB-TOTAL: 694.45, 77.78, 1.72, 0.01, 774.24 Outstanding for following periods from due date of payment as at 31st March, 2023: - Total: 682.63 - MSME: 44.39, Not Due: 44.39 - Others: 632.94, Less than 1 year: 49.68, 1-2 years: 0.01 - Disputed Dues - Others: 0.28 - SUB-TOTAL: 677.33, 49.68, 0.01, 727.30 ``` ``` SECTION: Accrued Payables (not due) - MSME: 93.49 - Others: 3838.20 - TOTAL: 4658.99 SECTION: 29. Additional Notes to the Consolidated Financial Statements (Contd.) In FY 2022-23, ITC Infotech India Limited (I3L) entered into an agreement with PTC Inc., a global technology company headquartered in Boston, USA, to acquire a part of PTC’s PLM implementation services business and create a new service line focused on the adoption of PTC’s industry-leading Windchill PLM software as a service (SaaS). The consideration against the above agreement is payable to PTC over a period of time by way of cash consideration and also involves contingent consideration which is subject to achievement of revenue and business targets. The contingent consideration is recognised as a level 3 input as they are dependent on achievement of revenue and business targets. PTC Liability Movement: - Opening Balance: 522.74 - Net Consideration payable to PTC Inc. on the date of acquisition (1st June, 2022): 720.98 - Settled: - Initial consideration paid on 1st June, 2022: (252.19) - Settlement of consideration by offset of trade receivables: (29.00) (1.64) - Referral Fees: (101.49) - Changes in fair value recognised in Other Income (Refer Note 23): 5.08, 50.63 - Change in fair value transferred to Hedge Reserve (Refer Note 32): 2.78, 4.96 - Closing Balance: 400.11, 522.74 Represents settlement of consideration for Business and Commercial Rights through standardisation projects and service credits. The amount carried in the Balance Sheet as a non-current financial liability is ` 281.54 Crores (2023 - ` 213.27 Crores) and as current financial liability is ` 118.57 Crores (2023 - ` 309.47 Crores) [Refer Note 17B]. SECTION: (xvii) The Ministry of Corporate Affairs (MCA) issued the Companies (Indian Accounting Standards) (Amendment) Rules, 2023 on 31st March, 2023, amending the following Ind AS, effective for annual periods beginning on or after 1st April, 2023: - Ind AS 1, ‘Presentation of Financial Statements’: This amendment requires companies to disclose their material accounting policies rather than their significant accounting policies. Consequently, the Group has disclosed material accounting policies. There is no impact on the consolidated financial statements. - Ind AS 12, ‘Income Taxes’: This amendment has narrowed the scope of the initial recognition exemption so that it does not apply to transactions that give rise to equal and offsetting temporary differences. The amendments clarify how companies account for deferred tax on transactions such as leases. The Group previously recognised deferred tax on leases on a net basis. Pursuant to the aforementioned amendment, the Group has grossed-up the deferred tax assets (DTA) and deferred tax liabilities (DTL) recognised in relation to leases by ` 71.24 Crores each w.e.f. 1st April, 2022. However, the said gross-up has no impact on the net deferred tax liabilities/expense presented in the consolidated financial statements. SECTION: 29. Additional Notes to the Consolidated Financial Statements (Contd.) SECTION: (xviii) I3L on 18th April, 2024, entered into a Share Purchase Agreement for the acquisition of 100% Shares of Blazeclan Technologies Private Limited for total consideration up to ` 485.00 Crores, including contingent consideration which is subject to achievement of prescribed targets. Blazeclan is an AWS Premier Partner, Snowflake Elite Partner, and a leader in providing Cloud transformation solutions to customers globally. Blazeclan has strong expertise in Cloud Migration, Digital Services, Digital Cloud Consulting, and Data Analytics & Insights. SECTION: (xix) As per the proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014, a company using accounting software for maintaining its books of account shall use only such accounting software which has a feature of recording an audit trail of each and every transaction, that creates an edit log for each change made in the books of account along with the date when such changes were made and ensuring that such audit trail cannot be disabled.
The respective companies in the Group have laid down appropriate policies to govern their Information Technology (IT) environment, including the aspects of audit trails and have established controls in respect of user access and database administration. Further, in respect of the usage of cloud-based accounting software, where applicable, appropriate contractual restrictions are in place regulating access management at both application and database levels. Consequently, the Group has ensured compliance with the aforementioned requirements in respect of audit trails with the exception of the following associates, which are not material to the consolidated financial statements of the Group: An associate company of the Group uses a cloud-based Enterprise Resource Planning (ERP) solution for maintenance of its books of account along with an integrated customer invoicing software for which audit trail has been enabled at the application level. Direct access to the database is provided only to the authorised personnel from the application support team and service provider only for system administration purposes. The service provider is contractually bound not to carry out any direct changes/edits to financial transactions or its underlying database, which if carried out will be considered a breach of contract. While the audit trail feature is not enabled at the database level in the ERP and the invoicing software, any changes made directly in the database are documented through the structured process for system administration activities. During the year, another associate company of the Group upgraded its accounting software to comply with the aforementioned requirements in respect of the audit trail on 25th May, 2023. While the upgraded software is compliant with the aforementioned requirements, the audit trail feature did not capture details of the user ID for transactions recorded at certain locations accounting for approximately 1% of the total value of transactions for the year of that associate company; the same has since been enabled. SECTION: (xx) Figures presented as “…” are below the rounding off norm adopted by the Group. SECTION: (xxi) Figures for the previous year have been re-arranged, wherever necessary, to conform to the figures of the current year. The same does not have any material impact on the consolidated financial statements. SECTION: (xxii) The consolidated financial statements were approved for issue by the Board of Directors on 23rd May, 2024. Such financial statements are required to be placed before the shareholders for adoption in terms of the Companies Act, 2013. SECTION: Notes to the Consolidated Financial Statements SECTION: 30. Segment Reporting Segment Data: - Segment: FMCG - Cigarettes - 2024: External: 33667.97, Inter Segment: 0, Total: 33667.97 - 2023: External: 31267.46, Inter Segment: 0, Total: 31267.46 - Segment: FMCG - Others - 2024: External: 20956.20, Inter Segment: 45.95, Total: 21002.15 - 2023: External: 19109.33, Inter Segment: 43.76, Total: 19153.09 - Segment: FMCG - Total - 2024: External: 54624.17, Inter Segment: 45.95, Total: 54670.12 - 2023: External: 50376.79, Inter Segment: 43.76, Total: 50420.55 - Segment: Hotels - 2024: External: 3085.49, Inter Segment: 17.90, Total: 3103.39 - 2023: External: 2672.79, Inter Segment: 16.33, Total: 2689.12 - Segment: Agri Business - 2024: External: 8518.65, Inter Segment: 7605.78, Total: 16124.43 - 2023: External: 12361.62, Inter Segment: 6081.77, Total: 18443.39 - Segment: Paperboards, Paper and Packaging - 2024: External: 6474.74, Inter Segment: 1869.67, Total: 8344.41 - 2023: External: 7233.69, Inter Segment: 1847.66, Total: 9081.35 - Segment: Others - 2024: External: 3571.93, Inter Segment: 79.21, Total: 3651.14 - 2023: External: 3181.69, Inter Segment: 81.04, Total: 3262.73 - Segment Total - 2024: 76274.98, 9618.51, 85893.49 - 2023: 75826.58, 8070.56, 83897.14 - Eliminations: (9618.51) Gross Revenue from Sale of Products and Services: - 2024: 76274.98 - 2023: 75826.58 SECTION: 2. Segment Results Segment Results Data: - Segment: FMCG - Cigarettes - 2024: Total: 20071.04 - 2023: Total: 18882.59 - Segment: FMCG - Others - 2024: Total: 1789.91 - 2023: Total: 1386.49 - Segment: FMCG - Total - 2024: Total: 21860.95 - 2023: Total: 20269.08 - Segment: Hotels - 2024: Total: 764.94 - 2023: Total: 557.31 - Segment: Agri Business - 2024: Total: 1278.33 - 2023: Total: 1380.21 - Segment: Paperboards, Paper and Packaging - 2024: Total: 1372.34 - 2023: Total: 2293.95 - Segment: Others - 2024: Total: 600.14 - 2023: Total: 534.62 - Segment Total - 2024: 25876.70 - 2023: 25035.17 - Eliminations: (196.06) - Total: 25680.64 - Unallocated corporate expenses net of unallocated income: (1108.04) - Profit before interest etc. and taxation: 24572.60 - Finance Costs: (45.96) - Interest earned on loans and deposits, income from current and non-current investments, profit and loss on sale of investments etc.
- Net: 2593.20 - Share of profit/(loss) of Associates and Joint Ventures: 27.61 - Exceptional items [Refer Note 29(i)]: (7.57) - Profit before tax: 27139.88 - Tax expense: (6388.52) - Profit for the year: 20751.36 SECTION: 3. Other Information Segment Assets and Liabilities: - Segment: FMCG - Cigarettes - 2024: Segment Assets: 9751.86, Segment Liabilities: 5442.84 - 2023: Segment Assets: 7913.36, Segment Liabilities: 5239.34 - Segment: FMCG - Others - 2024: Segment Assets: 12592.81, Segment Liabilities: 2491.34 - 2023: Segment Assets: 12059.55, Segment Liabilities: 2338.08 - Segment: FMCG - Total - 2024: Segment Assets: 22344.67, Segment Liabilities: 7934.18 - 2023: Segment Assets: 19972.91, Segment Liabilities: 7577.42 - Segment: Hotels - 2024: Segment Assets: 8765.18, Segment Liabilities: 1159.06 - 2023: Segment Assets: 7896.45, Segment Liabilities: 920.30 - Segment: Agri Business - 2024: Segment Assets: 5850.07, Segment Liabilities: 1467.72 - 2023: Segment Assets: 4836.69, Segment Liabilities: 1750.62 - Segment: Paperboards, Paper and Packaging - 2024: Segment Assets: 9596.76, Segment Liabilities: 1287.23 - 2023: Segment Assets: 9195.24, Segment Liabilities: 1315.18 - Segment: Others - 2024: Segment Assets: 3496.86, Segment Liabilities: 1252.50 - 2023: Segment Assets: 3090.47, Segment Liabilities: 1210.08 - Segment Total - 2024: Segment Assets: 50053.54, Segment Liabilities: 13100.69 - 2023: Segment Assets: 44991.76, Segment Liabilities: 12773.60 - Unallocated Corporate Assets/Liabilities: 41772.62, 3835.50 - Total: 91826.16, 16936.19 SECTION: Notes to the Consolidated Financial Statements SECTION: 30. Segment Reporting (Contd.) Capital Expenditure and Depreciation: - Segment: FMCG - Cigarettes - 2024: Capital Expenditure: 544.32, Depreciation and Amortization: 291.59 - 2023: Capital Expenditure: 185.07, Depreciation and Amortization: 303.74 - Segment: FMCG - Others - 2024: Capital Expenditure: 675.67, Depreciation and Amortization: 567.89 - 2023: Capital Expenditure: 418.77, Depreciation and Amortization: 588.03 - Segment: FMCG - Total - 2024: Capital Expenditure: 1219.99, Depreciation and Amortization: 859.48 - 2023: Capital Expenditure: 603.84, Depreciation and Amortization: 891.77 - Segment: Hotels - 2024: Capital Expenditure: 882.47, Depreciation and Amortization: 300.84 - 2023: Capital Expenditure: 588.70, Depreciation and Amortization: 294.67 - Segment: Agri Business - 2024: Capital Expenditure: 143.61, Depreciation and Amortization: 81.47 - 2023: Capital Expenditure: 258.41, Depreciation and Amortization: 69.60 - Segment: Paperboards, Paper and Packaging - 2024: Capital Expenditure: 872.47, Depreciation and Amortization: 359.93 - 2023: Capital Expenditure: 744.56, Depreciation and Amortization: 347.99 - Segment: Others - 2024: Capital Expenditure: 41.77, Depreciation and Amortization: 106.53 - 2023: Capital Expenditure: 809.52, Depreciation and Amortization: 91.69 - Segment Total - 2024: Capital Expenditure: 3160.31, Depreciation and Amortization: 1708.25 - 2023: Capital Expenditure: 3005.03, Depreciation and Amortization: 1695.72 - Unallocated - 2024: Capital Expenditure: 286.83, Depreciation and Amortization: 108.14 - 2023: Capital Expenditure: 191.04, Depreciation and Amortization: 113.29 - Total - 2024: Capital Expenditure: 3447.14, Depreciation and Amortization: 1816.39 - 2023: Capital Expenditure: 3196.07, Depreciation and Amortization: 1809.01 SECTION: Non-Cash Expenditure Other than Depreciation - FMCG - Cigarettes: 5.31, 9.63 - FMCG - Others: 110.61, 84.73 - FMCG - Total: 115.92, 94.36 - Hotels: 7.19, 7.75 - Agri Business: 58.60, 27.68 - Paperboards, Paper and Packaging: 34.67, 40.01 - Others: 7.00, 16.97 - Segment Total: 223.38, 186.77 SECTION: GEOGRAPHICAL INFORMATION 1. Revenue from external customers: - Within India: 63955.33, 59900.75 - Outside India: 12319.65, 15925.83 - Total: 76274.98, 75826.58 2. Non-current assets: - Within India: 29781.42, 28661.84 - Outside India: 2314.83, 1570.84 - Total: 32096.25, 30232.68 SECTION: NOTES: 1. The Group’s corporate strategy aims at creating multiple drivers of growth anchored on its core competencies. The Group is currently focused on four business groups: FMCG, Hotels, Paperboards, Paper and Packaging, and Agri Business. The Group’s organisational structure and governance processes are designed to support effective management of multiple businesses while retaining focus on each one of them. The Operating Segments have been reported in a manner consistent with the internal reporting provided to the Corporate Management Committee, which is the Chief Operating Decision Maker. 2. The business groups comprise the following: - FMCG: Cigarettes – Cigarettes, Cigars etc. - FMCG: Others – Branded Packaged Foods Businesses (Staples & Meals; Snacks; Dairy & Beverages; Biscuits & Cakes; Chocolates, Coffee & Confectionery); Education and Stationery Products; Personal Care Products; Safety Matches and Agarbattis. - Hotels – Hoteliering. - Paperboards, Paper and Packaging – Paperboards, Paper including Specialty Paper and Packaging including Flexibles. - Agri Business – Agri commodities such as wheat, rice, spices, coffee, soya, and leaf tobacco. - Others – Information Technology services, Branded Residences etc. 3. The Group companies have been included in segment classification as follows: - FMCG: Cigarettes – Surya Nepal Private Limited.
- FMCG: Others – Surya Nepal Private Limited, Surya Nepal Ventures Private Limited, and North East Nutrients Private Limited. - Hotels – Srinivasa Resorts Limited, Fortune Park Hotels Limited, Bay Islands Hotels Limited, WelcomHotels Lanka (Private) Limited, ITC Hotels Limited, and Landbase India Limited. - Paperboards, Paper and Packaging – ITC Fibre Innovations Limited. - Agri Business – Technico Agri Sciences Limited, ITC IndiVision Limited, Technico Pty Limited and its subsidiaries Technico Technologies Inc., Technico Asia Holdings Pty Limited, and Technico Horticultural (Kunming) Co. Limited. - Others – ITC Infotech India Limited and its subsidiaries ITC Infotech Limited, ITC Infotech (USA), Inc., ITC Infotech DO Brasil LTDA., ITC Infotech France SAS, ITC Infotech GmbH, ITC Infotech Malaysia SDN. BHD., ITC Infotech de Mexico, S.A. de C.V., and Indivate Inc., Russell Credit Limited and its subsidiary Greenacre Holdings Limited, Wimco Limited, Pavan Poplar Limited, Prag Agro Farm Limited, ITC Integrated Business Services Limited and its subsidiary MRR Trading & Investment Company Limited, Landbase India Limited, Gold Flake Corporation Limited, and WelcomHotels Lanka (Private) Limited. 4. The geographical information considered for disclosure are: - Revenue within India. - Revenue outside India. 5. Segment results of ‘FMCG: Others’ are after considering significant business development, brand building, and gestation costs of the Branded Packaged Foods businesses and Personal Care Products business. 6. As stock options and stock appreciation linked reward units are granted under ITC ESOS and ITC ESARP respectively to align the interests of employees with those of shareholders and also to attract and retain talent for the Group as a whole, the charge thereof does not form part of the segment performance reviewed by the Corporate Management Committee. 7. The Group is not reliant on revenues from transactions with any single external customer and does not receive 10% or more of its revenues from transactions with any single external customer. SECTION: Notes to the Consolidated Financial Statements SECTION: 31. Related Party Disclosures SECTION: 1. OTHER RELATED PARTIES WITH WHOM THE COMPANY AND ITS SUBSIDIARIES HAD TRANSACTIONS: SECTION: i) Associates & Joint Ventures: SECTION: Associates - a) Gujarat Hotels Limited - b) International Travel House Limited - c) ATC Limited - d) Delectable Technologies Private Limited - e) Mother Sparsh Baby Care Private Limited - f) Sproutlife Foods Private Limited (w.e.f. 04.05.2023) - g) Tobacco Manufacturers (India) Limited (of which the Company is an associate) and the subsidiaries of its ultimate parent company (British American Tobacco p.l.c.) ``` ``` SECTION: Joint Ventures - Maharaja Heritage Resorts Limited - ITC Filtrona Limited (formerly known as ITC Essentra Limited) SECTION: Key Management Personnel (KMP) - S. Puri - Chairman & Managing Director - S. Dutta - Executive Director and Chief Financial Officer - H. Malik - Executive Director (w.e.f. 12.08.2023) - B. Sumant - Executive Director - S. Banerjee - Non-Executive Director - H. Bhargava - Non-Executive Director - A. M. Bharucha - Non-Executive Director (w.e.f. 12.08.2023) - A. Duggal - Non-Executive Director - M. Gupta - Non-Executive Director - R. Jain - Non-Executive Director (w.e.f 01.01.2024) - S. Mukherjee - Non-Executive Director - A. Nayak - Non-Executive Director - S. Panray - Non-Executive Director - N. Rao - Non-Executive Director - A. K. Seth - Non-Executive Director - M. Shankar - Non-Executive Director - N. Anand - Executive Director (up to 02.01.2024) - P. R. Chittaranjan - Non-Executive Director (up to 31.08.2023) - D. R. Simpson - Non-Executive Director (up to 29.01.2024) SECTION: Independent Directors Company Secretary: R. K. Singhi SECTION: Members - Corporate Management Committee - S. Puri - S. Dutta - S. Kaul - H. Malik - A. Rajput - S. Sivakumar - B. Sumant - N. Anand (up to 02.01.2024) SECTION: Related Parties of KMP SECTION: Close Members of KMP - N. Singhi (wife of R. K. Singhi) - Y. Singhi (son of R. K. Singhi) - T. Anand (wife of N.
Anand) (up to 02.01.2024) SECTION: Entities in which KMP / close member of KMP is interested - Décor & Design - Bharucha & Partners SECTION: Employee Trusts - IATC Provident Fund - ITC Defined Contribution Pension Fund - ITC Management Staff Gratuity Fund - ITC Employees Gratuity Fund - ITC Gratuity Fund ‘C’ - ITC Pension Fund - ILTD Seasonal Employees Pension Fund - ITC Platinum Jubilee Pension Fund - ITC Bhadrachalam Paperboards Limited Management Staff Pension Fund - ITC Bhadrachalam Paperboards Limited Gratuity Fund ‘A’ - ITC Bhadrachalam Paperboards Limited Gratuity Fund ‘C’ - ITC Hotels Limited Employees Superannuation Scheme - Sunrise Spices Limited Employees Gratuity Fund - Greenacre Holdings Limited Provident Fund - Greenacre Holdings Limited Gratuity Fund SECTION: Notes to the Consolidated Financial Statements SECTION: Related Party Disclosures (Contd.) SECTION: Disclosure of Transactions Between the Group and Related Parties and the Status of Outstanding Balances as at 31.03.2024 (in Crores) \| Key Management Personnel (KMP) \| Related Parties of Associates \| Joint Ventures \| Employee Trusts \| Total \| \|---\|---\|---\|---\|---\| \| RELATED PARTY TRANSACTIONS SUMMARY \| 2024 \| 2023 \| 2024 \| 2023 \| \| 1. Sale of Goods / Services \| 1829.61 \| 2070.86 \| 100.55 \| 93.84 \| \| 2. Purchase of Goods / Services \| 196.56 \| 136.63 \| 639.27 \| 438.31 \| \| 3. Sale of Property, Plant and Equipment \| 0.21 \| 0.44 \| - \| - \| \| 4. Investment in Associates \| 65.04 \| 1.88 \| - \| - \| \| 5. Reimbursement for Share Based Payments \| 0.96 \| 1.83 \| 0.14 \| 0.37 \| \| 6. Rent Received \| 0.89 \| 0.88 \| - \| - \| \| 7. Rent Paid* \| 4.06 \| 4.32 \| 0.87 \| 1.02 \| \| 8. Remuneration of Managers on Deputation reimbursed \| 6.45 \| 7.06 \| - \| - \| \| 9. Remuneration of Managers on Deputation recovered \| 9.37 \| 7.95 \| 1.71 \| 1.76 \| \| 10. Contribution to Employees’ Benefit Plans \| 163.23 \| 118.04 \| - \| - \| \| 11. Dividend Income \| 2.02 \| 0.56 \| 22.50 \| 18.00 \| \| 12. Dividend Payments \| 5715.08 \| 4447.03 \| 9.28 \| 6.25 \| \| 13. Expenses Recovered \| 6.84 \| 29.10 \| 0.27 \| 0.30 \| \| 14. Expenses Reimbursed \| 0.27 \| 0.25 \| 0.01 \| - \| \| 15. Adjustment / Receipt towards Refund of Advances \| - \| - \| - \| - \| \| 16. Advances Received during the year \| 981.64 \| 1813.30 \| - \| - \| \| 17. Adjustment / Payment towards Refund of Advances \| 1333.30 \| 1786.29 \| - \| - \| \| 18. Adjustment / Receipt towards Refund of Deposit \| 0.05 \| 0.02 \| 0.05 \| - \| \| 19. Remuneration to KMP \| - \| - \| - \| - \| \| 19A. – Short term benefits \| 60.59 \| 59.82 \| - \| - \| \| 19B. – Other long-term incentives \| 40.34 \| 28.95 \| - \| - \| \| 19C. – Post employment benefits \| - \| - \| - \| - \| \| 19D. – Share Based Payments \| - \| - \| - \| - \| \| 20. Outstanding Balances \| - \| - \| - \| - \| \| i) Receivables \| 222.57 \| 105.86 \| 6.24 \| 16.04 \| \| ii) Advances Given \| 30.84 \| 5.76 \| - \| - \| \| iii) Deposits Given \| 0.01 \| 0.06 \| 0.03 \| 0.07 \| \| iv) Advances Taken \| 367.76 \| 719.42 \| - \| - \| \| v) Deposits Taken \| 0.61 \| 0.61 \| - \| - \| \| vi) Payables \| 5.86 \| 6.35 \| 9.65 \| 20.60 \| Includes transactions with close member of KMP & entities in which KMP / close member of KMP is interested. SECTION: The amounts outstanding are unsecured and will be settled in cash.* 1. Post employment benefits are actuarially determined on an overall basis and hence not separately provided. Payments made on settlement of leave liability upon retirement - ₹ 1.50 Crores (2023 - ₹ 2.69 Crores) has not been included in the above. 2. During the year, the Company granted Stock Options to eligible employees, including Executive Directors and KMPs, under its Employee Stock Option Schemes at ‘market price’ [within the meaning of the Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021].
The Company has also granted Employee Stock Appreciation Linked Reward Units (ESAR Units) to the aforesaid persons in the previous years under the ‘ITC Employee Cash Settled Stock Appreciation Linked Reward Plan’. Since such Stock Options and ESAR Units are not tradeable, no perquisite or benefit is immediately conferred upon the employee by grant of such Stock Options / ESAR Units, and accordingly the said grants have not been considered as ‘remuneration’. However, in accordance with Ind AS -102, the Group has recorded employee benefits expense by way of share based payments to employees at ₹ 140.38 Crores for the year ended 31st March, 2024 (2023 - ₹ 274.72 Crores), of which ₹ 30.85 Crores (2023 - ₹ 35.43 Crores) is attributable to Executive Directors and KMPs. SECTION: Notes to the Consolidated Financial Statements SECTION: Related Party Disclosures (Contd.) SECTION: Information Regarding Significant Transactions / Balances (Generally in excess of 10% of the total transaction value of the same type) (in Crores) \| RELATED PARTY TRANSACTIONS SUMMARY \| 2024 \| 2023 \| \|---\|---\|---\| \| 1. Sale of Goods / Services \| British American Tobacco (GLP) Limited \| 1070.96 \| 1352.17 \| \| \| S. Puri \| 13.37 \| 10.08 \| \| \| IATC Provident Fund \| 43.07 \| 39.47 \| \| \| JSC ‘British American Tobacco-SPb’ \| 298.82 \| 446.96 \| \| \| N. Anand \| 7.41 \| 4.47 \| \| \| ITC Management Staff Gratuity Fund \| 29.53 \| 23.89 \| \| 2. Purchase of Goods / Services \| ITC Filtrona Limited \| 639.27 \| 438.15 \| \| \| S. Dutta \| 4.15 \| 2.51 \| \| 3. Sale of Property, Plant and Equipment \| British American Tobacco (GLP) Limited \| - \| 23.70 \| \| \| S. Dutta \| 0.12 \| - \| \| 4. Investment in Associates \| Employee Trust - Pension Funds \| 30.84 \| - \| \| \| Mother Sparsh Baby Care Private Limited \| 11.54 \| - \| \| 5. Reimbursement for Share Based Payments \| British American Tobacco (GLP) Limited \| 4.86 \| 21.97 \| \| 6. Rent Received \| International Travel House Limited \| 0.88 \| 0.87 \| \| 7. Rent Paid \| Gujarat Hotels Limited \| 4.06 \| 4.32 \| \| 8. Remuneration of Managers on Deputation \| N. Anand \| 0.05 \| - \| \| \| T. Anand \| 0.05 \| - \| \| 9. Remuneration of Managers on Deputation \| S. Puri \| 13.06 \| 12.09 \| \| \| B. Sumant \| 5.74 \| 5.35 \| \| \| ATC Limited \| 2.99 \| 3.11 \| \| \| S. Dutta \| 5.08 \| 4.31 \| \| \| H. Malik \| - \| - \| \| \| N. Anand \| 4.81 \| 5.96 \| \| \| R. K. Singhi \| 0.87 \| - \| SECTION: Notes to the Consolidated Financial Statements SECTION: Financial Instruments and Related Disclosures SECTION: A. Capital Management The Group’s financial strategy aims to support its strategic priorities and provide adequate capital to its businesses for growth and creation of sustainable stakeholder value. The Group funds its operations through internal accruals and aims at maintaining a strong capital base to support the future growth of its businesses. During the year, the Company issued 5,67,03,730 Ordinary Shares (2023 - 10,47,61,810 Ordinary Shares) of ₹ 1.00 each amounting to ₹ 5.67 Crores (2023 - ₹ 10.48 Crores) towards its employee stock options. The securities premium stood at ₹ 14813.95 Crores as at 31st March, 2024 (2023 - ₹ 13036.79 Crores). SECTION: B. Categories of Financial Instruments \| Particulars \| Note \| Carrying Value \| Fair Value \| Carrying Value \| Fair Value \| \|---\|---\|---\|---\|---\|---\| \| As at 31st March, 2024 \| - \| - \| - \| - \| - \| \| A.
Financial assets \| - \| - \| - \| - \| - \| \| a) Measured at amortised cost \| - \| - \| - \| - \| - \| \| i) Cash and cash equivalents \| 13 \| 625.89 \| 625.89 \| 463.35 \| 463.35 \| \| ii) Other Bank Balances \| 14 \| 6591.79 \| 6591.79 \| 4416.84 \| 4416.84 \| \| iii) Investment in Bonds / Debentures & Government or Trust Securities \| 4 \| 117427.67 \| 7277.90 \| 8234.83 \| 8225.70 \| \| iv) Investment in Mutual Funds \| 4 \| 366.88 \| 362.91 \| 346.05 \| 337.99 \| \| v) Loans \| 5 \| 13.86 \| 12.72 \| 12.60 \| 11.31 \| \| vi) Trade receivables \| 12 \| 4025.82 \| 4025.82 \| 2956.17 \| 2956.17 \| \| vii) Other financial assets \| 6 \| 1587.83 \| 1540.34 \| 4824.27 \| 4776.27 \| \| Sub-total \| - \| 20639.74 \| 20437.37 \| 21254.11 \| 21187.63 \| \| b) Measured at Fair value through OCI \| - \| - \| - \| - \| - \| \| i) Investment in Equity shares \| 4 \| 4676.28 \| 4676.28 \| 1723.70 \| 1723.70 \| \| ii) Investment in Mutual Funds \| 4 \| 5020.09 \| 5020.09 \| 3776.62 \| 3776.62 \| \| Sub-total \| - \| 9696.37 \| 9696.37 \| 5500.32 \| 5500.32 \| \| c) Measured at Fair value through Profit or Loss \| - \| - \| - \| - \| - \| \| i) Investment in Mutual Funds \| 11 \| 10299.12 \| 10299.12 \| 9425.09 \| 9425.09 \| \| ii) Investment in Bonds / Debentures, Certificates of Deposit \| 11 \| 2612.95 \| 2612.95 \| 5412.55 \| 5412.55 \| \| iii) Investment in Venture Capital Funds \| 4 \| 121.96 \| 121.96 \| 119.25 \| 119.25 \| \| iv) Investment in Equity & Preference Shares \| 4 \| 39.34 \| 39.34 \| 39.34 \| 39.34 \| \| Sub-total \| - \| 13073.37 \| 13073.37 \| 14996.23 \| 14996.23 \| \| d) Derivatives measured at fair value \| - \| - \| - \| - \| - \| \| i) Derivative instruments not designated as hedging instruments \| 6 \| 2.37 \| 2.37 \| 4.77 \| 4.77 \| \| ii) Derivative instruments designated as hedging instruments \| 6 \| 0.53 \| 0.53 \| 29.38 \| 29.38 \| \| Sub-total \| - \| 2.90 \| 2.90 \| 34.15 \| 34.15 \| \| Total financial assets \| - \| 43412.38 \| 43210.01 \| 41784.81 \| 41718.33 \| SECTION: Financial Instruments and Related Disclosures (Contd.) \| Particulars \| Note \| Carrying Value \| Fair Value \| Carrying Value \| Fair Value \| \|---\|---\|---\|---\|---\|---\| \| B. Financial liabilities \| - \| - \| - \| - \| - \| \| a) Measured at amortised cost \| - \| - \| - \| - \| - \| \| i) Cash credit facilities & loans \| 16, 20 \| 8.00 \| 8.00 \| 34.27 \| 34.27 \| \| ii) Sales tax deferment loans \| 16, 20 \| 3.28 \| 2.90 \| 4.54 \| 3.66 \| \| iii) Trade payables \| - \| 4797.83 \| 4797.83 \| 4658.99 \| 4658.99 \| \| iv) Lease Liabilities \| 17A \| 292.15 \| 292.15 \| 267.23 \| 267.23 \| \| v) Other financial liabilities \| 17B \| 2192.79 \| 2170.85 \| 2280.58 \| 2249.76 \| \| Sub-total \| - \| 7294.05 \| 7271.73 \| 7245.61 \| 7213.91 \| \| b) Measured at fair value \| - \| - \| - \| - \| - \| \| i) Derivative instruments not designated as hedging instruments \| 17B \| 2.81 \| 2.81 \| 4.27 \| 4.27 \| ``` ``` SECTION: Financial Liabilities Overview Derivative instruments designated as hedging instruments: - Contingent Consideration: 412.76, 535.39 - Sub-total: 420.17, 544.00 - Total financial liabilities: 7714.22, 7789.61 SECTION: C. Financial Risk Management Objectives Entities comprising the Group have established risk management systems tailored to their respective operations. The following outlines the objectives and processes of the Company, the largest component of the Group. The Company employs a system-based approach to risk management, anchored in policies, procedures, and internal financial controls aimed at early identification, evaluation, and management of key financial risks (market risk, credit risk, and liquidity risk) arising from its business operations and investing and financing activities. The risk management framework aims to ensure that such risks are managed within acceptable and approved parameters in a disciplined manner, in compliance with applicable regulations, and to drive accountability.
SECTION: Liquidity Risk The Group’s current assets total ₹ 41065.54 Crores (2023 - ₹ 39670.89 Crores), including current investments, cash and cash equivalents, and other bank balances of ₹ 20162.10 Crores (2023 - ₹ 22113.05 Crores), against current liabilities of ₹ 13690.40 Crores (2023 - ₹ 13739.41 Crores). The Group may sell instruments held at amortised cost as part of its surplus liquidity management, with net losses from such sales amounting to ₹ 16.37 Crores (2023 - ₹ 49.13 Crores). Other non-current liabilities due between one and three years total ₹ 257.32 Crores (2023 - ₹ 304.94 Crores), and those due after three years amount to ₹ 178.40 Crores (2023 - ₹ 115.42 Crores). The maturity analysis of undiscounted lease liabilities is disclosed under Note 29(xi). The Group’s total equity stands at ₹ 74889.97 Crores (2023 - ₹ 69538.79 Crores), with non-current borrowings of ₹ 1.76 Crores (2023 - ₹ 3.49 Crores). Therefore, liquidity risk does not exist. SECTION: Market Risk SECTION: 1. Foreign Currency Risk The Group engages in transactions denominated in foreign currencies (mainly US Dollar, Pound Sterling, Euro, and Japanese Yen), which are subject to exchange rate fluctuations. Financial assets and liabilities in foreign currencies, including net investments in foreign operations, are also subject to reinstatement risks. SECTION: Notes to the Consolidated Financial Statements SECTION: 32. Financial Instruments and Related Disclosures (Contd.) The carrying amounts of foreign currency denominated financial assets and liabilities, including derivative contracts, are as follows: As at 31st March, 2024 (in Crores): - Financial Assets: USD 904.81, Euro 207.41, GBP 202.69, JPY 0, Others 121.16, Total 1436.07 - Financial Liabilities: USD 91.63, Euro 29.87, GBP 1.24, JPY 2.02, Others 14.58, Total 139.34 As at 31st March, 2023 (in Crores): - Financial Assets: USD 1010.94, Euro 312.50, GBP 66.24, JPY 0.27, Others 87.88, Total 1477.83 - Financial Liabilities: USD 129.94, Euro 32.56, GBP 2.44, JPY 8.24, Others 7.17, Total 180.35 The above does not include the consideration payable to PTC Inc. towards acquisition of business and commercial rights since it is hedged through cash flow hedge [Refer Note 29(xvi)]. The Group uses foreign exchange forward, futures, and options contracts to hedge exposures arising from firm commitments and highly probable forecast transactions. SECTION: a. Forward Exchange Contracts Outstanding* Designated under Hedge Accounting: As at 31st March, 2024: - Currency: US Dollar, Buy: 13.59, Sell: 98.15 - Currency: Euro, Buy: 11.15, Sell: 0 - Currency: GBP, Buy: 0.02, Sell: 0 - Currency: JPY, Buy: 36.03, Sell: 0 Not Designated under Hedge Accounting: As at 31st March, 2024: - Currency: US Dollar, Buy: 0, Sell: 76.45 - Currency: Euro, Buy: 1.24, Sell: 12.74 - Currency: JPY, Buy: 203.75, Sell: 0 SECTION: Notes to the Consolidated Financial Statements SECTION: 32. Financial Instruments and Related Disclosures (Contd.) SECTION: b. Currency Options Outstanding Designated under Hedge Accounting: - Currency: US Dollar, Buy: 0, Sell: 8.00 Hedges of foreign currency risk and derivative financial instruments are managed by each entity within the Group. The Company and a subsidiary have established risk management policies to hedge cash flow volatility arising from exchange rate fluctuations through various contracts. The proportion of forecast transactions to be hedged is based on transaction size and market conditions. SECTION: The Movement in the Cash Flow Hedging Reserve Particulars: - At the beginning of the year: (1.23) - Changes in the fair value of effective portion of matured cash flow hedges: (6.44) - Changes in fair value of effective portion of outstanding cash flow hedges: (9.02) - Amounts transferred to the Statement of Profit and Loss: (20.53) - Amounts transferred to initial cost of non-financial assets: 10.85 - At the end of the year: (4.50) SECTION: Notes to the Consolidated Financial Statements SECTION: 32. Financial Instruments and Related Disclosures (Contd.) SECTION: Foreign Currency Sensitivity For every percentage point increase/decrease in the underlying exchange rate of outstanding foreign currency denominated assets and liabilities, the profit before tax for the year ended 31st March, 2024 would decrease/increase by ₹ 4.30 Crores (2023 - ₹ 2.72 Crores). SECTION: 2. Interest Rate Risk The Group is virtually debt-free, and its deferred payment liabilities do not carry interest, resulting in negligible exposure to interest rate risk. The Group’s investments are primarily in bonds, fixed deposits, and debt mutual funds, with temporary mark-to-market movements. SECTION: 3. Other Price Risk The Group holds certain investments in equity for long-term value, measured at fair value through Other Comprehensive Income.
The value of these investments as at 31st March, 2024 is ₹ 4676.28 Crores (2023 - ₹ 1723.70 Crores). SECTION: Credit Risk Each entity within the Group manages its own credit risk. The Company primarily invests in government securities, fixed deposits with highly rated banks, and mutual fund schemes. The Group’s investments held at amortised cost stood at ₹ 14447.05 Crores (2023 - ₹ 16422.36 Crores). The Company’s customer base is large and diverse, limiting credit concentration risk. SECTION: Notes to the Consolidated Financial Statements SECTION: 32. Financial Instruments and Related Disclosures (Contd.) The Group’s exposure to trade receivables, net of expected loss provisions, stood at ₹ 4025.82 Crores (2023 - ₹ 2956.17 Crores). The movement of the expected loss provision is as follows: Particulars: - Opening Balance: 240.86 - Provisions made (net): 14.81 - Utilisation for impairment: 23.73 - Closing Balance: 232.19 SECTION: D. Fair Value Measurement The following table presents the fair value hierarchy of financial assets and liabilities measured at fair value on a recurring basis: Particulars: - Financial assets measured at amortised cost: - Investment in Bonds/Debentures: 7277.90 (2024), 8225.70 (2023) - Investment in Mutual Funds: 362.91 (2024), 337.99 (2023) - Loans: 2.91 (2024), 4.19 (2023) - Other Financial assets: 361.50 (2024), 3691.75 (2023) Sub-total: 8005.22 (2024), 12259.63 (2023) - Financial assets measured at Fair value through OCI: - Investment in Equity shares – Quoted: 4673.86 (2024), 1721.28 (2023) - Investment in Equity shares – Unquoted: 2.42 (2024), 2.42 (2023) Sub-total: 9696.37 (2024), 5500.32 (2023) - Financial assets measured at Fair value through Profit or Loss: - Investment in Mutual Funds: 10299.12 (2024), 9425.09 (2023) - Investment in Bonds/Debentures: 2612.95 (2024), 5412.55 (2023) Sub-total: 13073.37 (2024), 14996.23 (2023) - Derivatives measured at fair value. ``` ``` SECTION: Financial Instruments and Related Disclosures SECTION: A. Financial Assets - Derivative instruments not designated as hedging instruments: - Hierarchy (Level): 2 - Fair Value: 2.37 (As at 31st March, 2024), 4.77 (As at 31st March, 2023) - Derivative instruments designated as hedging instruments: - Hierarchy (Level): 2 - Fair Value: 0.53 (As at 31st March, 2024), 29.38 (As at 31st March, 2023) - Sub-total: - Fair Value: 2.90 (As at 31st March, 2024), 34.15 (As at 31st March, 2023) - Total financial assets: - Fair Value: 30,777.86 (As at 31st March, 2024), 32,790.33 (As at 31st March, 2023) SECTION: B. Financial Liabilities - Particulars, Hierarchy (Level), Fair Value, As at 31st March, 2024, As at 31st March, 2023 - Measured at amortised cost: - Sales tax deferment loans: - Hierarchy (Level): 3 - Fair Value: 1.38 (As at 31st March, 2024), 2.40 (As at 31st March, 2023) - Other Financial liabilities: - Hierarchy (Level): 3 - Fair Value: 130.48 (As at 31st March, 2024), 172.78 (As at 31st March, 2023) - Lease Liabilities: - Hierarchy (Level): 3 - Fair Value: 230.61 (As at 31st March, 2024), 213.37 (As at 31st March, 2023) - Loans: - Hierarchy (Level): 3 - Fair Value: – (As at 31st March, 2024), 0.21 (As at 31st March, 2023) - Sub-total: - Fair Value: 362.47 (As at 31st March, 2024), 388.76 (As at 31st March, 2023) - Measured at fair value: - Derivative instruments not designated as hedging instruments: - Hierarchy (Level): 2 - Fair Value: 2.81 (As at 31st March, 2024), 4.27 (As at 31st March, 2023) - Derivative instruments designated as hedging instruments: - Hierarchy (Level): 2 - Fair Value: 4.60 (As at 31st March, 2024), 4.34 (As at 31st March, 2023) - Contingent Consideration: - Hierarchy (Level): 3 - Fair Value: 412.76 (As at 31st March, 2024), 535.39 (As at 31st March, 2023) - Sub-total: - Fair Value: 420.17 (As at 31st March, 2024), 544.00 (As at 31st March, 2023) - Total financial liabilities: - Fair Value: 782.64 (As at 31st March, 2024), 932.76 (As at 31st March, 2023) *Represents fair value of non-current financial instruments.
SECTION: Reconciliation of Fair Value Movement of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis and Categorised within Level 3 of the Fair Value Hierarchy - As at 31st March, 2024: - Financial Assets at FVTPL: 39.34 - Financial Assets at FVTOCI: 2.42 - Financial Liabilities at FVTPL: 535.39 - Opening Balance: - 39.34, 2.42, 535.39, 20.00 - Additions during the year: - –, –, –, 39.34 - Sale / Transfer / Settlement during the year: - –, –, 130.49, 20.00 - Gain / (Loss) during the year recognised in Other Income: - –, –, (5.08), – - Gain / (Loss) during the year recognised in Other Comprehensive Income: - –, –, (2.78), (2.32) - Closing Balance: - 39.34, 2.42, 412.76, 39.34 SECTION: Fair Value Hierarchy Fair value of the financial instruments is classified in various fair value hierarchies based on the following three levels: - Level 1: Quoted prices (unadjusted) in active market or Net Asset Value (NAV) for identical assets or liabilities. - Level 2: Inputs other than quoted price included within level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). - Level 3: Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs). SECTION: Independent Auditor’s Report To the Members of ITC Limited SECTION: Report on the Audit of the Consolidated Ind AS Financial Statements SECTION: Opinion We have audited the accompanying consolidated Ind AS financial statements of ITC Limited (hereinafter referred to as “the Holding Company”), its subsidiaries (the Holding Company and its subsidiaries together referred to as “the Group”), its associates and joint ventures comprising of the consolidated Balance Sheet as at March 31, 2024, the consolidated Statement of Profit and Loss, including other comprehensive income, the consolidated Statement of Cash Flows and the consolidated Statement of Changes in Equity for the year then ended, and notes to the consolidated Ind AS financial statements, including a summary of material accounting policies and other explanatory information (hereinafter referred to as “the consolidated Ind AS financial statements”). In our opinion and to the best of our information and according to the explanations given to us and based on the consideration of reports of other auditors on separate financial statements and on the other financial information of the subsidiaries, associates and joint ventures, the aforesaid consolidated Ind AS financial statements give the information required by the Companies Act, 2013, as amended (“the Act”) in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the consolidated state of affairs of the Group, its associates and joint ventures as at March 31, 2024, their consolidated profit including other comprehensive income, their consolidated cash flows and the consolidated statement of changes in equity for the year ended on that date. SECTION: Basis for Opinion We conducted our audit of the consolidated Ind AS financial statements in accordance with the Standards on Auditing (SAs), as specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the ‘Auditor’s Responsibilities for the Audit of the Consolidated Ind AS Financial Statements’ section of our report. We are independent of the Group, associates, joint ventures in accordance with the ‘Code of Ethics’ issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the consolidated Ind AS financial statements. SECTION: Key Audit Matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the consolidated Ind AS financial statements for the financial year ended March 31, 2024. For each matter below, our description of how our audit addressed the matter is provided in that context. Key Audit Matter: Revenue Recognition Our audit procedures included the following: - Assessed the Group’s revenue recognition accounting policies in line with Ind AS 115 (“Revenue from Contracts with Customers”) and tested thereof.
- Evaluated the integrity of the general information and technology control environment and testing the operating effectiveness of key IT application controls over recognition of revenue. - Tested the effectiveness of such controls over revenue cut off at year-end. - On a sample basis, tested supporting documentation for sales transactions recorded during the year which included sales invoices, customer contracts and shipping documents. - Performed an increased level of substantive testing in respect of sales transactions recorded during the period closer to the year end and subsequent to the year end. - Compared revenue with historical trends and where appropriate, conducted further enquiries and testing. - Assessed disclosures in financial statements in respect of revenue, as specified in Ind AS 115. Key Audit Matter: Impairment Assessment of Capital Work in Progress (Hotel) and Valuation of Inventories (Residential Apartments) Our audit procedures included the following: - Obtained understanding of the Company’s policy on assessment of impairment of PPE and determination of net realizable value for inventory and assumptions used by the management including design and implementation of controls. - Obtained and read the projections / estimated selling price / future cashflows along with sensitivity analysis thereof. - Discussed and obtained from component auditor of WLPL their assessment of potential indicators of impairment of PPE and recoverable value of inventory. - Evaluated management’s methodology, assumptions and estimates used in the calculations. - Compared projections shared by the management in previous year with the actuals for the year ended March 31, 2024. - Performed sensitivity analysis around impact on future cash flows due to changes in key assumptions considered by management. - Verified the arithmetical accuracy of the future cash flow model including comparison with approved budgets. - Assessed the recoverability of PPE with regard to the value in use and net realizable value of inventory. SECTION: Information Other than the Financial Statements and Auditor’s Report Thereon The Holding Company’s Board of Directors is responsible for the other information. The other information comprises the information included in the Annual Report, but does not include the consolidated Ind AS financial statements and our auditor’s report thereon. Our opinion on the consolidated Ind AS financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the consolidated Ind AS financial statements, our responsibility is to read the other information and, in doing so, consider whether such other information is materially inconsistent with the consolidated Ind AS financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. SECTION: Responsibilities of Management for the Consolidated Ind AS Financial Statements The Holding Company’s Board of Directors is responsible for the preparation and presentation of these consolidated Ind AS financial statements in terms of the requirements of the Act that give a true and fair view of the consolidated financial position, consolidated financial performance including other comprehensive income, consolidated cash flows and consolidated statement of changes in equity of the Group including its associates and joint ventures in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended. The respective Board of Directors of the companies included in the Group and of its associates and joint ventures are responsible for maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of their respective companies and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgements and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the consolidated Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error, which have been used for the purpose of preparation of the consolidated Ind AS financial statements by the Directors of the Holding Company, as aforesaid.
In preparing the consolidated Ind AS financial statements, the respective Board of Directors of the companies included in the Group and of its associates and joint ventures are responsible for assessing the ability of their respective companies to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so. Those respective Board of Directors of the companies included in the Group and of its associates and joint ventures are also responsible for overseeing the financial reporting process of their respective companies. SECTION: Auditor’s Responsibilities for the Audit of the Consolidated Ind AS Financial Statements Our objectives are to obtain reasonable assurance about whether the consolidated Ind AS financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated Ind AS financial statements. As part of an audit in accordance with SAs, we exercise professional judgement and maintain professional skepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the consolidated Ind AS financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. - Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Holding Company has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such controls. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. - Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of the Group and its associates and joint ventures to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated Ind AS financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group and its associates and joint ventures to cease to continue as a going concern. ``` ``` SECTION: Evaluation of Consolidated Ind AS Financial Statements Evaluate the overall presentation, structure, and content of the consolidated Ind AS financial statements, including the disclosures, and whether they represent the underlying transactions and events in a manner that achieves fair presentation. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group and its associates and joint ventures of which we are the independent auditors and whose financial information we have audited, to express an opinion on the consolidated Ind AS financial statements. We are responsible for the direction, supervision, and performance of the audit of the financial statements of such entities included in the consolidated Ind AS financial statements. For the other entities included in the consolidated Ind AS financial statements, which have been audited by other auditors, such other auditors remain responsible for the direction, supervision, and performance of the audits carried out by them. We remain solely responsible for our audit opinion. We communicate with those charged with governance of the Holding Company and such other entities included in the consolidated Ind AS financial statements regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated Ind AS financial statements for the financial year ended March 31, 2024, and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. SECTION: Other Matter (a) We did not audit the financial statements and other financial information, in respect of twenty-four subsidiaries, whose financial statements include total assets of ₹ 8,009.91 crores as at March 31, 2024, and total revenues of ₹ 3,666.49 crores and net cash inflows of ₹ 43.60 crores for the year ended on that date. SECTION: Independent Auditor’s Report These financial statements and other financial information have been audited by other auditors, whose reports have been furnished to us by the management. The consolidated Ind AS financial statements also include the Group’s share of net profit of ₹ 27.61 crores for the year ended March 31, 2024, as considered in the consolidated Ind AS financial statements, in respect of nine associates and three joint ventures, whose financial statements and other financial information have been audited by other auditors and whose reports have been furnished to us by the management. Our opinion on the consolidated Ind AS financial statements, in so far as it relates to the amounts and disclosures included in respect of these subsidiaries, joint ventures, and associates, is based solely on the reports of such other auditors. Certain of these subsidiaries are located outside India whose financial statements and other financial information have been prepared in accordance with accounting principles generally accepted in their respective countries and which have been audited by other auditors under generally accepted auditing standards applicable in their respective countries. The Holding Company’s management has converted the financial statements of such subsidiaries located outside India from accounting principles generally accepted in their respective countries to accounting principles generally accepted in India. We have audited these conversion adjustments made by the Holding Company’s management. Our opinion in so far as it relates to the balances and affairs of such subsidiaries located outside India is based on the report of other auditors and the conversion adjustments prepared by the management of the Holding Company and audited by us. Our opinion above on the consolidated Ind AS financial statements, and our report on Other Legal and Regulatory Requirements below, is not modified in respect of the above matters with respect to our reliance on the work done and the reports of the other auditors. SECTION: Report on Other Legal and Regulatory Requirements 1. As required by the Companies (Auditor’s Report) Order, 2020 (“the Order”), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, based on our audit and on the consideration of the report of the other auditors on separate financial statements and the other financial information of the subsidiary companies, associate companies, and joint ventures incorporated in India, as noted in the ‘Other Matter’ paragraph, we give in the “Annexure 1” a statement on the matters specified in paragraph 3(xxi) of the Order. 2. As required by Section 143(3) of the Act, based on our audit and on the consideration of the report of the other auditors on separate financial statements and the other financial information of subsidiaries, associates, and joint ventures, as noted in the ‘Other Matter’ paragraph, we report, to the extent applicable, that: 1. We / the other auditors whose report we have relied upon have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit of the aforesaid consolidated Ind AS financial statements; 2.
In our opinion, proper books of account as required by law relating to preparation of the aforesaid consolidation of the financial statements have been kept so far as it appears from our examination of those books and reports of the other auditors. Insofar as the modification on maintaining an audit trail in the accounting software is concerned, refer paragraph (i) (vi) below; 3. The Consolidated Balance Sheet, the Consolidated Statement of Profit and Loss including the Statement of Other Comprehensive Income, the Consolidated Statement of Cash Flows, and Consolidated Statement of Changes in Equity dealt with by this Report are in agreement with the books of account maintained for the purpose of preparation of the consolidated Ind AS financial statements; 4. In our opinion, the aforesaid consolidated Ind AS financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015, as amended. SECTION: Independent Auditor’s Report (continued) (e) On the basis of the written representations received from the directors of the Holding Company as on March 31, 2024, taken on record by the Board of Directors of the Holding Company and the reports of the statutory auditors who are appointed under Section 139 of the Act, of its subsidiary companies, associate companies, and joint ventures, none of the directors of the Group’s companies, its associates, and joint ventures, incorporated in India, is disqualified as on March 31, 2024 from being appointed as a director in terms of Section 164 (2) of the Act; (f) The modification arising from the maintenance of the audit trail on the accounting software is as stated in the paragraph (i) (vi) below on reporting under Rule 11(g); (g) With respect to the adequacy of the internal financial controls with reference to consolidated Ind AS financial statements of the Holding Company and its subsidiary companies, associate companies, and joint ventures, incorporated in India, and the operating effectiveness of such controls, refer to our separate Report in “Annexure 2” to this report; (h) In our opinion and based on the consideration of reports of other statutory auditors of the subsidiaries, associates, and joint ventures incorporated in India, the managerial remuneration for the year ended March 31, 2024 has been paid / provided by the Holding Company, its subsidiaries, associates, and joint ventures incorporated in India to their directors in accordance with the provisions of section 197 read with Schedule V to the Act; (i) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of our information and according to the explanations given to us and based on the consideration of the report of the other auditors on separate financial statements as also the other financial information of the subsidiaries, associates, and joint ventures, as noted in the ‘Other Matter’ paragraph: 1. The consolidated Ind AS financial statements disclose the impact of pending litigations on its consolidated financial position of the Group, its associates, and joint ventures in its consolidated Ind AS financial statements – Refer Note 29(iv)(a) to the consolidated Ind AS financial statements; 2. The Group, its associates, and joint ventures did not have any material foreseeable losses in long-term contracts including derivative contracts during the year ended March 31, 2024; 3. There has been no delay in transferring amounts required to be transferred to the Investor Education and Protection Fund by the Holding Company, its subsidiaries, associates, and joint ventures, incorporated in India during the year ended March 31, 2024; 4.
a) The respective managements of the Holding Company and its subsidiaries, associates, and joint ventures which are companies incorporated in India whose financial statements have been audited under the Act have represented to us and the other auditors of such subsidiaries, associates, and joint ventures respectively that, to the best of its knowledge and belief, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Holding Company or any of such subsidiaries, associates, and joint ventures to or in any other person or entity, including foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the respective Holding Company or any of such subsidiaries, associates, and joint ventures (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; b) The respective managements of the Holding Company and its subsidiaries, associates, and joint ventures which are companies incorporated in India whose financial statements have been audited under the Act have represented to us and the other auditors of such subsidiaries, associates, and joint ventures respectively that, to the best of its knowledge and belief, no funds have been received by the respective Holding Company or any of such subsidiaries, associates, and joint ventures from any person or entity, including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Holding Company or any of such subsidiaries, associates, and joint ventures shall, whether directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and c) Based on the audit procedures that have been considered reasonable and appropriate in the circumstances performed by us and that performed by the auditors of the subsidiaries, associates, and joint ventures which are companies incorporated in India whose financial statements have been audited under the Act, nothing has come to our or other auditor’s notice that has caused us or the other auditors to believe that the representations under sub-clause (a) and (b) contain any material misstatement. v) The final dividend paid by the Holding Company, its subsidiaries, its associates, and a joint venture incorporated in India during the year in respect of the same declared for the previous year is in accordance with section 123 of the Act to the extent it applies to payment of dividend. The interim dividend declared and paid during the year by the Holding Company and its subsidiaries until the date of the respective audit report of such Holding Company is in accordance with section 123 of the Act. As stated in Note B of Statement of Changes in Equity to the consolidated Ind AS financial statements, the respective Board of Directors of the Holding Company, its subsidiaries, its associates, and a joint venture, incorporated in India have proposed final dividend for the year which is subject to the approval of the members of the respective companies at the respective ensuing Annual General Meeting. The dividend declared is in accordance with section 123 of the Act to the extent it applies to declaration of dividend. vi) Based on our examination which included test checks and that performed by the respective auditors of the subsidiaries, associates, and joint ventures which are companies incorporated in India whose financial statements have been audited under the Act, except for the instances disclosed in note 29 (xix) to the consolidated Ind AS financial statements, the Holding Company, subsidiaries, associates, and joint ventures have used accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software. Further, during the course of our audit, we and respective auditors of the above-referred subsidiaries, associates, and joint ventures did not come across any instance of audit trail feature being tampered with, in respect of accounting software where the audit trail has been enabled. SECTION: Annexure 1 Referred to in paragraph 1 under the heading “Report on Other Legal and Regulatory Requirements” of our report of even date.

Subsets and Splits