ITC Report and Accounts 2023

Nation First: Sab Saath Badhein
REPORT AND ACCOUNTS 2023

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ITC: Contributing to India’s Amrit Kaal

Creating value for Agriculture, Manufacturing and Services
Board of Directors and Committees 01
Report on Corporate Governance (including Shareholder Information) 12
Report of the Board of Directors & Management Discussion and Analysis 38
Secretarial Auditor’s Report 131
CEO and CFO Compliance Certificate 145
Standalone Financial Statements
Balance Sheet 146
Statement of Profit and Loss 147
Statement of Changes in Equity 148
Cash Flow Statement 150
Notes to the Financial Statements 152
Independent Auditor’s Report 214
Guide to Subsidiaries, Joint Ventures & Associates 226
Salient Features of the Financial Statements of Subsidiaries,

Joint Ventures & Associates (Form AOC-1) 229
Consolidated Financial Statements 233
Ten Years at a Glance 322
Financial Highlights
Business Responsibility and Sustainability Report I-XLVIII
ITC Infotech: Business Friendly Solutions
Creating Enduring Institutions
Awards & Accolades
The mnemonic is a visual representation of ITC’s deep commitment to sustainable

and inclusive growth addressing national priorities. The 12 colourful stems
represent ITC’s vibrant businesses of the future that contribute to all three sectors
of the Indian economy. The icon at the centre is a metaphor for ITC’s future
readiness and digital transformation that is at the core of every business. The
soaring birds symbolise growth that is sustainable and inclusive and reiterate ITC’s
commitment to its credo of Nation First, Sab Saath Badhein.
ITC: Contributing to India’s Amrit Kaal

Creating value for Agriculture, Manufacturing and Services
Inspired by its credo of ‘Nation First, Sab Saath resilience and consumer centricity. New avenues for
Badhein’, ITC has pioneered a paradigm of growth have been identified, whilst fortifying existing
‘Responsible Competitiveness’, that focuses on businesses and putting in place higher order
building extreme competitiveness of its businesses structural competitiveness to create new vitality for
whilst serving national priorities of generating the enterprise. These strategic interventions will
sustainable livelihoods and enriching the make a growing contribution to the nation in its
environment. journey to the Amrit Kaal.
ITC contributes to nation building by unleashing As a core element of ITC Next, ITC has been
multiple drivers of growth that are manifest in its exploring opportunities to craft disruptive business
growing presence across the three sectors of the models anchored at the intersection of the two mega
economy – agriculture, manufacturing and services; trends of Digital and Sustainability, while leveraging
creation of world-class Indian brands; investments in the Company’s institutional strengths. This has
creating state-of-the-art manufacturing assets; enabled ITC to unleash new vectors of growth with
building of iconic hospitality assets and empowering interventions like ITCMAARS – a ‘phygital’ farmer
farmers as well as rural communities. Such empowerment ecosystem, Food Tech Services and
endeavours create enduring value for our Sustainable Packaging. In addition, new drivers of
stakeholders and the nation. growth are also being pursued through value
Today, the world is traversing through unprecedented accretive acquisitions and exports.
challenges emerging from a ‘polycrisis’ ITC’s diversified portfolio of future-ready businesses,
encompassing climate change, widening inequality, spanning FMCG, Paperboards & Packaging, Agri
geo-political issues and reglobalisation. A new global Business, Hotels and Information Technology,
economic order is being shaped with these crises enables it to contribute meaningfully to all 3 sectors
spurring new strategies, innovations and business of the Indian economy. To infuse new energy into the
models. Addressing these challenges and growth drivers of the future, significant investments
opportunities, ITC has crafted a comprehensive are being made across building assets, accelerating
ITC Next vision to build a future-tech, innovative, digital transformation, powering R&D infrastructure
climate positive, sustainable and inclusive and in raising the bar in sustainability to build an
enterprise, powered by agility, competitiveness, enterprise of tomorrow.
Spices, Coffee, Frozen Marine Products and

Processed Fruits amongst others. Third, to address
the challenges of climate change, ITC has introduced
a range of sustainable agricultural practices under its
climate-smart agriculture (CSA) programme.
In line with India’s focus on promoting millets as the
grain of the future, ITC has launched a dedicated
initiative titled ‘ITC Mission Millets’ leveraging its
enterprise strengths in agriculture, food and
hospitality. This initiative is focused on developing
a‘good for you’ range of products, implementation of
sustainable farming systems and enhancing
consumer awareness.
ITC - Making in India
ITC: Transforming Agriculture

Agriculture is a critical pillar of the Indian economy,
engaging with more than half of the nation’s
workforce. The sector also plays a vital role in
providing food, fuel, fibre, fodder and nutrition
security. However, farming remains extremely
vulnerable to the vagaries of climate change.
Endeavours to usher in a new dimension of
agricultural development must focus on enhancing
the competitiveness of the sector by improving
productivity, enabling value addition, effectively linking
farmers to markets and promoting regenerative
agriculture.
ITC is a leading Agri Business player in India,
supporting 20 value chain clusters. The Company has
been sourcing over 4.5 million tonnes of agri
Recognising that it is important to create national
commodities from 22 states and is today the largest
procurer of wheat in the private sector. ITC’s Agri assets and in alignment with the Government’s vision
Business is also one of India's largest exporters of to ‘Make in India’, ITC has invested significantly in
agri commodities and provides competitive advantage building world-class manufacturing, intellectual and
to ITC’s FMCG Businesses through distinctive hospitality assets for India. ITC’s contribution
sourcing capabilities. ITC’s world-class FMCG brands includes creating world-class Indian brands that
also anchor demand-driven agri value chains. bring about superior value-capture in the economy,
ITC has a century-old legacy of farmer setting up of a network of state-of-the-art Integrated
empowerment. Building on the ITC e-Choupal Consumer Goods Manufacturing facilities across the
programme that has empowered 4 million farmers in country to support indigenous value chains,
the last two decades, ITC is now ushering in NextGen developing a globally benchmarked Life Sciences &
Agriculture with a three-pronged approach. First, ITC
Technology Centre for cutting edge R&D and
aims to bring the power of digital to the agri sector
innovation that contributes to building intellectual
through its‘phygital’ platform, ITCMAARS
capital for the nation. ITC has also built iconic hotel
(Metamarket for Advanced Agriculture and Rural
Services), a programme that delivers hyperlocal and assets that not only enrich the nation’s tourism
personalised solutions by synergistically integrating landscape but are also a trailblazer in green
NextGen agri-technologies to empower farmers. hoteliering through their ethos of ‘Responsible
Second, ITC is rapidly scaling up its value-added agri Luxury’. Such assets create enduring value for
portfolio straddling multiple value chains comprising ITC and the nation.
ITC – Reimagining Sustainability social challenges of inequity and livelihood

generation, ITC has adopted a 2-horizon approach to
Climate change has emerged as an existential threat support livelihoods and contribute to inclusive
that requires building of resilience through innovative growth, especially in rural areas. The first horizon
solutions for both mitigation and adaptation. It is aims at securing and strengthening the dominant
heartening that India is leading the world in climate sources of livelihood through extensive programmes
action with the nation ranking first overall among all for farmer empowerment, while the second focuses
G20 members in the Climate Performance Index. on building capabilities for the future in areas such as
India’s updated NDCs, its global collaboration “One
primary education, vocational training, women
Sun, One World, One Grid” to promote solar energy,
empowerment, healthcare and so on.
the National Hydrogen Mission demonstrate India’s
leadership in the area. Reimagining sustainability to address the challenges
of climate crisis and livelihood creation, ITC has now
For decades, ITC has been acclaimed as a global
embarked on an even more ambitious Sustainability
exemplar in sustainability. Aligning with the nation’s
2.0 journey to raise the bar to create a secure and
climate action plan, ITC has now crafted a
better tomorrow.
comprehensive strategy to pursue a low carbon
growth path through extensive decarbonisation The following pages provide a glimpse into ITC’s
programmes across its operations and value chains, multi-dimensional growth drivers that are propelling
while also implementing largescale adaptation the Company to a new horizon of competitive and
initiatives encompassing water stewardship, sustainable progress, while contributing to India’s
biodiversity, CSA, among others. Recognising the journey to Amrit Kaal.
ITC’s Triple Bottomline Contribution
Economic
`69,481cr
Gross Revenue
`23,944 cr
EBITDA
Nearly
75% Among Top 3

Corporates in the Private Sector in Terms of
of Value-added Accrues Contribution to Exchequer over the Years
to the Exchequer
Net Cash from Total Dividend
`19,255 cr
Operating Activities
`17,912 cr
12
Future-ready Businesses
25+
World-class
across Agriculture, Mother Brands
Manufacturing and Services
200+
Manufacturing
4.5 mn
tonnes of Agri Commodities Throughput
Units
*for the year ended 31st March, 2023

ITC’s Triple Bottomline Contribution
Social
Over 50 Lakh Women

60 Lakh e-Choupal:
Benefitted through Multi-dimensional

Sustainable
Livelihoods Supported
40 Lakh
Farmers Empowered
Programmes
Livestock Development:
Primary Education: Skilling and Vocational Training:
Over 11.2 Lakh Over 21.3 Lakh
Over 1.2 Lakh Milch Animals Covered
Children Benefitted Youth Enrolled
Environmental
Watershed Development: Biodiversity Conservation:

Afforestation:
Over 14.7 Lakh Over 10.4 Lakh Over 2.9 Lakh
Acres Covered Acres Covered
Acres Greened
Climate Smart Agriculture:

23.4 Lakh ITC is
Well-being Out of Waste Covers:
Acres Covered in 17 states Plastic Neutral

Collecting and Sustainably
Over 2.2 Crore
Citizens
Managing 60,000 MT of Waste
ITC Malur is the

First Foods ITC Life Sciences
and Technology Centre -
Factory in Asia,
while ITC Kovai is the
First Paper Mill
Around 43%
of ITC's Energy is from
40
Platinum-Rated
Ranked Top
Innovator in India*
globally to receive AWS Renewable Sources Green Buildings
Platinum certification *amongst Indian Pharma & Health Care Pvt. Cos.
(Sagacious IP Report Aug’21)
Recognition for ITC’s Initiatives
Sustained
‘AA’ rating by MSCI
for the fifth consecutive year
ITC included
in the ITC retained its
Dow Jones CDP score of
Sustainability ‘A-‘ (Leadership
Emerging Level) for
Markets Index climate change
for the third and water
year in a row security for the
second
consecutive year
CO2
World’s first
World’s first
12 LEED Zero Carbon
2 LEED Zero
Hotels are ITC Hotels
Water Hotels
and ITC Sankhya
are ITC Hotels
is the First LEED Zero
Carbon Data Centre
ITC’s Businesses
FMCG Businesses
• India’s leading FMCG marketer
• Businesses spanning Foods, Personal Care
Products, Education & Stationery Products,
Agarbattis & Matches
• ITC Next strategy focuses on a future-ready
portfolio, premiumisation, innovation, digital
adoption, and a greater market penetration
• Annual consumer spend of nearly
`29,000 crores
• Exports to over 60 countries
• ITC e-Store: 45+ categories, over 900 products,
operational in 24,000+ pin-codes
• Extensive digital adoption across operations
Agri Business
• Leading Agri Business player in India
• Best-in-class profitability
• Sourcing from 22 states; supporting over 20 value
chain clusters
• ITC Next strategy focuses on scaling up value-added
segments (Spices, Coffee, Aqua, MAPE, etc.), digital
adoption through ITCMAARS and climate smart agriculture
• Extensive engagement with farmers for over 100 years
• Largest procurer of wheat in the private sector
• One of India's largest exporters of agri commodities
Paperboards & Packaging Businesses

• No. 1 in Revenue and Profitability
• One of India's largest, greenest and most technologically
advanced
• ITC Next strategy focuses on value-added paperboards,
sustainable packaging and accelerated adoption of Industry 4.0
technologies
• Contributing to ‘Make in India’ and Import Substitution
• Anchoring local forestry value chains, empowering farmers,
enhancing green cover, generating livelihoods
• First in India to obtain Forest Stewardship Council-Forest
Management (FSC®-FM)
• Invested in a green boiler to increase share of renewable energy
in its operations
ITC Hotels
• Pre-eminent Hotel Chain in India with
over 120 properties
• World-class properties under 6 brands - ITC Hotels,
Mementos, Welcomhotel, Storii, Fortune and
WelcomHeritage
• ITC Next strategy focuses on an "Asset-right"
approach, sweating existing assets and creating
additional revenue streams
• Iconic cuisine brands like Bukhara, Dum Pukht,
Avartana, Yi Jing, Royal Vega etc.
• Trailblazer in 'Responsible Luxury' & Sustainability
• All luxury collection hotels are LEED Platinum certified
• ITC Hotels & Welcomhotels achieved global 2030 Carbon
emissions targets well ahead of time
ITC Infotech
• Wholly owned subsidiary of ITC Limited and a leading
global technology services and solutions provider
• Employees from 40 nationalities; Operating in 39
Countries; 60+ Fortune 500 Clients
• ‘Orbit Next’ strategy powering the next horizon of growth
and differentiation
• Capability-led differentiation through portfolio of client
and industry-led capabilities including PLM-led Digital
Thread Solutions, Digital Manufacturing, Open Hospitality,
Cloud, and Sustainability
• Strategic partnership with PTC Inc., (US-headquartered,
global technology company) to start new Service Line, DxP
Services, comprising a global ecosystem of PLM-led
Digital Thread and SaaS experts
• Amplifying new-age Digital capabilities with sustained
Analyst recognition across CPG Digital Services, Digital CX
Services, Digital Workplace Services, Manufacturing
Digital Solutions and Intelligent Automation Services
Brand Leadership
No. 1 No. 1 No. 1

in Bridges segment of Snack Foods
in Branded Atta in the Cream Biscuits segment
No. 1 No. 2
in Noodles
No. 1
in Dhoop segment
No. 2
in Agarbattis
in Notebooks
ITC’s Agri Business –

Pioneer in Rural Transformation
ITC - One of India’s Largest Agri Business Players

• Century-old engagement with farmers
• Sourcing 45 Lakh tonnes across 22 States; supporting 20+ agri value chains
• Delivering competitive advantage to ITC’s Foods Businesses through distinctive sourcing capabilities
• Exporter of agri commodities including spices, coffee, fruits, rice, wheat, value-added frozen marine products
Value-Addition for Exports and Domestic Markets
Value-addition empowers farmers by helping them move up the value chain. ITC is fortifying its Value-Added Agri
Products (VAAP) portfolio comprising Millets, MAPE, Organic, Spices, Coffee, Frozen Marine Products and Processed
Fruits. The products also cater to domestic and exports markets. ITC's Agri Business provides strategic support to
ITC’s Foods Businesses.
ITC: Ushering in NextGen Agri
ITC’s Agri Business is ushering in NextGen Agriculture by accelerating Digital Adoption and promoting
Climate Smart Agriculture.
ITCMAARS
Farmers’ App
ITCMAARS (Metamarket for Advanced Agriculture and Rural Services) is a crop-agnostic ‘phygital’ full stack AgriTech
platform, powered by cutting-edge digital technologies, that provides a robust eco system to deliver hyperlocal
personalised solutions to farmers, whilst creating new revenue streams, strengthening sourcing efficiencies and
powering the Company’s world-class Indian brands. ITCMAARS has been rolled out in nine states till date, with over
1150 FPOs encompassing more than 5 lakh farmers.
Building Climate Resilience through Climate Smart Agriculture

ITC’s climate smart agriculture interventions are aimed at making agri practices climate resilient and future ready.
The programme has benefitted over 7 lakh farmers, covering over 23 lakh acres in 17 states. GHG emissions of select
crops have been reduced by upto 66% and net returns of farmers increased upto 90%, over a period from 2016 to 2021.
Assessments made in 3 states highlight that 70% of the villages moved into the High Resilience, High Yield category,
thus becoming Climate Smart.
ITC: Empowering Rural Communities
Creating Vibrant Demand Driven Value Chains Anchored by Brands

ITC’s Foods, Agri and Paperboards Businesses drive powerful and sustainable agri value chains across crops, linking
farmers to markets.
Wheat Potato Fruit Pulp Spices
Millets Milk Paper

ITC: Building World-Class

Brands for India
ITC’s Branded Packaged Foods
Atta, Organic Pulses, Frozen Bread & Parathas, Salt and Dairy products
Biscuits, Cookies and Cakes
Potato Chips and Finger Snacks Instant Noodles and Pasta
Frozen Snacks

Brands for India
ITC’s Branded Packaged Foods
Spices and Papad
Juices Frozen Vegetables
Luxury Chocolates Candies, Toffees and Wafers
Coffee Range Ready-to-eat Gourmet Cuisine


Brands for India
ITC’s Personal Care Products
Gel Bars, Shower Gels, Handwash and Perfume Mists
Fragrances
Soaps and Body Washes
Skincare and Bath Care Range
Skin-friendly Germ Protection Products Floor Cleaners – Power of Neem


Brands for India
ITC’s Education and Stationery Products
Stationery Products Diaries and Premium Pens
ITC’s Matches and Agarbatti Products
Agarbatti and Dhoop
Safety Matches

Brands for India
ITC's Mission Millets

In line with its purpose of ‘Help India Eat Better,’ ITC has developed an innovative 'good-for-you' range of
millet-based products for new-age consumers that caters to every meal occasion, age group and formats which
are being progressively introduced in the market.
Flour and Multi Millet Mix
Cookies and Biscuits
Vermicelli, Instant Meals, Instant Noodles, Confectionery


Brands for India
Recent Launches - High Quality Differentiated Offerings
Engage Eau De Parfum Dermafique Hydra Soft Nourishing Body Wash

and Aqua Cloud Hydrating Shower Gel
Aashirvaad Organic Whole Wheat Atta
Fabelle Luxury Chocolates
Dark Fantasy Desserts
Sunbean Coffee Range Sunfeast Smoothies - with fruit chunks and badam bits
Aashirvaad Svasti Paneer Slices Classmate Interaktiv Craft Books Mangaldeep 3in1 and
Temple Festive Flora Agarbattis

Brands for India

Branded Packaged Foods
Aashirvaad: Staples, Organic Pulses, Dairy, Ready-to-cook, Vermicelli, Rava, Salt and Spices, Frozen Breads & Parathas
Sunfeast: Biscuits and Shakes


Brands for India

Branded Packaged Foods
Bingo: Namkeen & Chips YiPPee!: Noodles
ITC Master Chef: Frozen Snacks
Sunbean: Beaten Caffe and Instant Coffee
B Natural: Coconut Water and Juices
Sunrise: Spices

Brands for India

Personal Care Products
Fiama Men Charcoal & Grapefruit Range Fiama Happy Naturals Perfume Mists & Shower Gels Engage Intense Deos for Men
Nimyle Floor Cleaners – Power of Neem Vivel VedVidya Beauty Soaps
Education & Stationery Products
Classmate Hook Pens, Augmented Reality Notebooks and

Interaktiv Craft Book Paperkraft Vintage Diaries
Agarbatti & Matches
Mangaldeep Dhuno Cups and Sambrani Cups Special Celebration Pack of Matches

Brands for India
Sustainable Packaging Innovations
Aashirvaad Organic Atta in Sunfeast YiPPee! Noodles: Transitioned to 100% Mono Material
Paper-based Packaging PP Laminate (Outer pack and inner sachet)
ITC Master Chef Frozen Snacks: Transitioned to Aashirvaad Iodized Salt: ITC Savlon First in the Category to use 70%
100% Mono Material PE Laminate 100% Mono Material Recycled Plastic Material in the PET Films
PE Laminate of Savlon Glycerin Soap Wrapper
Fiama Shower Gel Bottles made from 50% Recycled Plastic Engage Cologne Secondary Packaging is
100% Paper-based Recyclable Cartons

Brands for India
Brands with Purpose
ITC's Brands with Purpose embrace environmental & social causes and
also create awareness amongst consumers.
Aashirvaad Atta 'Raho Chaar Kadam Aage'

campaign-helping homemakers with Making mental well-being Supporting women empowerment with
upskilling opportunities a more proactive conversation Ab Samjhauta Nahin
B Natural: supporting local Indian Sunfeast Cup: annual football tournament Sunfeast Mom’s Magic #HugHerMore
farmers by making majority of providing a platform to young campaign reinforces the magical effect of
our juices from 100% Indian fruit sporting talent in the North-East a Mom’s hug, and encourages everyone
to hug their Moms more frequently

Brands for India
Brands with Purpose
ITC's Brands with Purpose embrace environmental & social causes and
also create awareness amongst consumers.
Better World Programme: assisting Terra by YiPPee! : a new solution to

schools with desks and benches made sustainably manage post-consumer Savlon Swasth India Mission: seeding
of recycled plastic packaging waste behavioural change towards hand hygiene
Supporting holistic skill development of Training and empanelling visually impaired

school students, nurturing them to persons as fragrance testers, fostering
become well-rounded individuals a life of dignity and hope
ITC: Building Agile, Resilient and

Competitive Distribution Infrastructure
Extensive Distribution Network
ITC’s deep & wide distribution network reaches millions of households in India.
ITC’s omni-channel distribution network facilitates availability of its products at nearly 70 lakh retail
outlets and is a source of sustainable, competitive advantage for its FMCG Businesses.
A tech-enabled Digital Infrastructure with AI/ML enabled apps like Unnati among others are providing
structural efficiencies to help build ITC as a future enterprise.
ITC is also scaling up its D2C platforms.

ITC e-Store is operational in 24,000+ pin-codes.
New routes-to-market have been unlocked
through several strategic partnerships catering to
segments like 'on-the-go' consumption, direct
marketing, airports & airlines and QSRs.
ITC: Making in India,

Building Manufacturing Assets for India
Recent Launches of State-of-the-Art

Manufacturing Facilities
The network of 11 state-of-the-art Integrated Consumer Goods Manufacturing & Logistics (ICML)
Facilities, the recently established Ancillary Manufacturing and Logistics Facilities (AMLF) and other
units provide structural competitiveness to ITC's businesses.
ICML Medak, Telangana Global spices facility in Guntur, Andhra Pradesh
ICML Kapurthala, Punjab
ICML Khordha, Odisha


ITC's Paperboards, Paper and Packaging Businesses

• Promoting manufacturing excellence with state-of-the-art factories adopting best-in-class technologies
• Established India's largest integrated pulp and paper mill, anchoring inclusive fiber value chain and enabling import
substitution
• Scaling up the value-added products portfolio, pioneering innovative fiber-based solutions as well as sustainable
packaging options
• A trendsetter in digital adoption and a pioneer in Industry 4.0 technology adoption. The digital interventions include
Industrial IoT for Smart Operations, Integrated Data Platform, AI/ML algorithms for optimisation in manufacturing
process, AI/ML based image analytics and IoT based crop monitoring & advisory, computer vision-based solutions to
improve workforce safety
ITC Paperboards & Specialty Papers Manufacturing unit, Bhadrachalam, Telangana

• Enhancing share of Renewable Energy in its operations with several initiatives including investment in a green boiler
at Bhadrachalam
• A state-of-the-art High Pressure Recovery Boiler at the Bhadrachalam paper mill is progressively enhancing energy
efficiency and reducing the carbon footprint of the unit
New High Pressure Recovery Boiler at the ITC Paperboards & Specialty Papers Manufacturing unit,
Bhadrachalam, Telangana

ITC’s Paperboards and Packaging Businesses

Promoting sustainable packaging solutions that substitute single-use plastics.
‘FiloPack’ and ‘FiloServe’ - recyclable paperboards ‘OmegaBev’ and ‘OmegaBarr

- biodegradable paperboards
IndoBowl - Replacing plastic

containers in food delivery WrapWell - an easily-recyclable
food grade paper that serves as Bio-seal -
a substitute for aluminium foil An environment-friendly
paper-based tea envelope bag
with a 100% biodegradable
coating provides a good
alternative for multilayer
plastic bags
Sign-up Green Tribe Kraft -

- ITC’s paperboard 100% recyclable
OXY BLOCK - Recyclable offering that is a more alternative to
coating solution to enhance sustainable alternative single-use
barrier properties in packaging to plastic-based plastic
indoor advertising packaging
ITC: Enriching Tourism Landscape of India

ITC Hotels with its credo of ‘Responsible Luxury’ stands for iconic hotel properties,
signature cuisines, service excellence and as a sustainability exemplar.
Glimpses of New Launches

ITC’s Hotels Business is one of the fastest growing hospitality chains in the country. The Business has over 120 properties under
6 distinctive brands – ‘ITC Hotels’ in the Luxury segment, ‘Mementos’ in the Luxury Lifestyle segment, ‘Welcomhotel’ and ‘Storii’
in the Premium segment, ‘Fortune’ in the Mid-market to Upscale segment and ‘WelcomHeritage’ in the Leisure & Heritage
segment. ITC’s Hotels business meaningfully contributes to the tourism potential of the country, while supporting livelihoods.
The first 12 LEED Zero Carbon hotels in the world and the first 2 LEED Zero Water properties are ITC Hotels.
ITC Narmada, Ahmedabad

Mementos, Udaipur

In the last year, 12 new properties were added across brands.
Glimpses of New Launches
Welcomhotel, Manali Storii Moira, Goa
WelcomHeritage Cheetahgarh Resort

ITC Fortune Resort, Kalimpong and Spa, Rajasthan
Innovations at ITC Hotels
ITC Hotels' credo of ‘Responsible Luxury’ has enabled the business to synergise exclusive
experiences with sustainable practices.
The Hotels Business has the highest number of hotels in the world to have been awarded the LEED
Platinum Certification by USGBC, with 22 of its hotels achieving this feat.
ITC Hotels reduced the use of single-use plastics from around 150 touch points across its operations,
eliminating around 2.5 lakh kg of plastic per year.
ITC’s Hotels also offer a host of innovative, curated propositions across accommodation, dining and
banqueting to delight customers.
Special Packages Gourmet Couch - Signature

for Staycations Food Delivery Services ‘Sleeep’ Boutiques
*Representative image
ITC: Driving Purposeful and

Agile Innovation
Cutting-edge R&D at LSTC
ITC’s Life Sciences & Technology Centre is at the centre of driving innovation to strengthen ITC’s
competitiveness.
Strategic investments in key science-based platforms in emerging areas important for the future as
well as Centres of Excellence across domains have enabled ITC to launch winning products anchored
on the vectors of Health & Nutrition, Hygiene, Protection & Care, Convenience & On-the-Go,
Indulgence etc.
With over 400 scientists, ITC has filed over 800 patent applications till date. It has been ranked as the
top innovator in India.
ITC’s Digital Transformation
Accelerated Digital Adoption Across Every Node of Operation

ITC’s aspiration is to be a ‘FutureTech’ enterprise by leveraging cutting-edge digital technologies, including AI/ML,
Industry 4.0, Advanced Analytics, Big Data and Industrial IoT, to enable competitive business transformation.
Smart Insights Smart Sourcing
Sixth Sense Marketing Command

Centre – an AI-powered hyper- Astra - An AI/ML and ITCMAARS – Bringing
personalised platform, utilised to analytics-based digital platform the power of digital
gain insights on market trends and for ITC's Agri Business to support to farmers
consumer behaviour smart buying decisions
Smart Manufacturing Smart Distribution
Next Generation
Agile FMCG
Supply Chain
Unnati VIRU Vistaar Zen

Over 100 use cases developed ITC e-Store - operational in 24,000+ pin-codes, Unnati - covering
and implemented using nearly 5.4 lakh outlets, PACE - using 8000+ data points to provide
Industry 4.0 at the Paperboards and sharp targeted store level recommendations. Other digital projects
Specialty Papers Business include Lighthouse, Zen, VIRU, Trinetra, Vistaar, M Astra
Smart Consumers
ITC Hotels App Classmateshop.com Dermafique AI powered Meri Chakki atta Engage
smart skin advisor Fragrance Finder
Building a Digi First Culture

Young Digital Innovators’ Forum; DigiNext Council
Towards the Next Horizon

of Sustainability
ITC: Combating Climate Change, Creating Sustainable Livelihoods

ITC’s sustainability journey over a quarter of a century has been inspired by its vision to make sustainable and
inclusive growth the bedrock of its corporate strategy. ITC’s efforts have focussed on designing and implementing
large-scale programmes to address the challenges of climate change, replenish the environment and create
sustainable livelihoods to empower rural communities.
ITC’s Climate Action
ITC is pursuing a low carbon growth strategy through extensive decarbonisation programmes across its value chain.
ITC is also implementing adaptation measures based on nature-based solutions, across its operations and sites.
Decarbonisation
 Green infrastructure - 40 LEED Platinum Certified green buildings
 ITC’s social and farm forestry initiative also helps in carbon sequestration of nearly 6 million tonnes annually
 World’s first 12 LEED Zero Carbon Hotels, 2 LEED Zero Water Hotels and first LEED Zero Carbon Data Centre
are ITC properties
ITC Maratha, Mumbai ITC Grand Chola, Chennai
ITC Rajputana, Jaipur ITC Grand Central, Mumbai ITC Mughal, Agra ITC Sonar, Kolkata
ITC Gardenia, Bengaluru ITC Windsor, Bengaluru Welcomhotel, Chennai Welcomhotel, Bengaluru
Welcomhotel, Guntur Welcomhotel, Coimbatore Sheraton, New Delhi ITC Sankhya Data Centre, Bengaluru
Climate Risk Assessments Renewable Energy

ITC is working with climate experts to conduct • Around 43% of ITC's energy is
comprehensive climate risk assessments across its from renewable sources
locations to estimate the impact of climate hazards • ITC’s Renewable Energy capacity
over different time frames. Site-specific agri value has reached nearly 178MW. This
chain studies are being undertaken for developing includes an off-site solar plant in
contextual location-specific adaptation plans and Tamil Nadu. 3 more such plants
strategies. are in the pipeline
Circular Economy New High Pressure

• Solid Waste Management - Well-being Out of Recovery Boiler at the
Waste covered over 2.2 crore citizens ITC Paperboards & Specialty Papers
Manufacturing unit, Bhadrachalam,
• ITC is Plastic Neutral for the 2nd consecutive year
Telangana

of Sustainability
ITC: Combating Climate Change, Creating Sustainable Livelihoods
Nature-Based Solutions | Adaptation • Integrated Water Stewardship

- Watershed development covering 14.7 lakh acres,
• Afforestation - greened over 10.4 lakh acres,
benefitted over 4.2 lakh people
1,900 lakh person-days of employment supported
- Demand Side Management: water savings of 20-45% in 15 crops
• Biodiversity - restored over 2.9 lakh acres • AWS Certification for high water stressed areas
• Climate Smart Agriculture - Platinum certification achieved for ITC Kovai and
ITC Malur factories
ITC: Supporting Sustainable Livelihoods
Women Empowerment
Around 1.2 lakh women benefitted
Collaboration with NITI Aayog Baareh Mahine Hariyali

Improved Agriculture & Allied Services has benefitted over 2 lakh farmers in Uttar
indicators in 27 aspirational districts across 8 states Pradesh, income doubled for over 35,000 farmers

of Sustainability
ITC: Supporting Sustainable Livelihoods
Primary Education Vocational Training

Covered over 11 lakh children Benefitted over 1.2 lakh youth
Livestock Development Health and Sanitation

Benefitting over 4.68 lakh households Built over 39,600 toilets - 97% households
reported usage

of Sustainability
Sustainability Targets 2030

Reduce. Recycle. Restore.
Strategic Interventions to Combat Climate Change
Decarbonisation Nature-Based Green

Solutions Infrastructure
Circularity Climate Adaptation Inclusive

and Resilience Value Chains
Sustainability Targets 2030
50% 50% 100% 100%

Collection
in FY22
Renewable Energy Specific GHG Emission Recyclable Packaging Plastic Neutrality

(by 2028) achieved ahead of its time
Water Security for all Biodiversity & Agriculture

5x of ITC’s Net Consumption Biodiversity Conservation
1 million acres
AWS Certification Climate Smart Village
3 million acres
for High Water Stressed
Sites by 2035 Social & Farm Forestry million acres
Supporting Sustainable Livelihoods: From 6 million to 10 million

Board of Directors
Chairman & Managing Director Non-Executive Directors
Sanjiv Puri Shilabhadra Banerjee Anand Nayak
Hemant Bhargava Sunil Panray
Executive Directors Peter Rajatilakan Chittaranjan Nirupama Rao
Arun Duggal Ajit Kumar Seth
Nakul Anand
Mukesh Gupta Meera Shankar
Sumant Bhargavan
Shyamal Mukherjee David Robert Simpson
Supratim Dutta
(also Chief Financial Officer)
Board Committees
Audit Committee CSR and Sustainability Nomination &
A Duggal Chairman Committee Compensation Committee
S Banerjee Member S Puri Chairman S Banerjee Chairman
H Bhargava Member P R Chittaranjan Member A Nayak Member
S Mukherjee Member M Gupta Member S Puri Member
S Dutta Invitee S Panray Member M Shankar Member
M Ganesan Invitee N Rao Member R K Singhi Secretary
(Head of Internal Audit) A K Seth Member
Representative of Invitee M Shankar Member
the Statutory Auditors
D R Simpson Member
R K Singhi Secretary
R K Singhi Secretary
Securityholders Independent Directors

Relationship Committee Committee
A Nayak Chairman S Banerjee Member
P R Chittaranjan Member H Bhargava Member
S Dutta Member A Duggal Member
B Sumant Member S Mukherjee Member
R K Singhi Secretary A Nayak Member
N Rao Member
A K Seth Member
M Shankar Member
Corporate Management Executive Vice President & Company Secretary

Rajendra Kumar Singhi
Committee General Counsel
S Puri Chairman Angamuthu Shanmuga Sundaram
N Anand Member Investor Service Centre
37 Jawaharlal Nehru Road, Kolkata 700 071, India
S Dutta Member
Telephone nos. : 1800-345-8152 (toll free)
B Sumant Member 033 2288 6426 / 0034
S Kaul Member Facsimile no. : 033 2288 2358
e-mail : [email protected]
H Malik Member
Statutory Auditors
A K Rajput Member
S R B C & CO LLP
S Sivakumar Member Chartered Accountants, Mumbai
R K Singhi Secretary Registered Office
Virginia House
37 Jawaharlal Nehru Road, Kolkata 700 071, India
Telephone no. : 033 2288 9371
CIN : L16005WB1910PLC001985
ITC Corporate Website : www.itcportal.com
ITC Limited REPORT AND ACCOUNTS 2023 1

Your Directors
S. Puri consumer preferences. Given his deep conviction that
mega trends like Digital and Sustainability will reshape
Sanjiv Puri (60), DIN: 00280529, is the Chairman &
the future, Puri has passionately rallied the organisation
Managing Director of ITC Limited.
to develop capabilities, channelise investment and
Puri was appointed as a Wholetime Director on the resources to enhance competitiveness of existing
Board of ITC with effect from December 6, 2015, businesses, and also identify tech-enabled growth
Chief Executive Officer in February 2017 and opportunities. Lending new wings to ITC’s credo of
re-designated as the Managing Director in May 2018. ‘Nation First: Sab Saath Badhein’, he has articulated
He was appointed as the Chairman effective an ambitious Sustainability 2.0 vision that will enlarge
May 13, 2019. He is an alumnus of the ITC’s contributions to a net-zero economy and
Indian Institute of Technology, Kanpur, and meaningfully support national priorities.
the Wharton School of Business, USA. Puri has served as the Chairman of the Expert Group
Puri joined ITC in January 1986. During his career constituted by the Fifteenth Finance Commission of the
of over three decades at ITC and its subsidiaries, Government of India to promote agri-exports, and of the
he has held several business leadership positions CII National Council on Agriculture. He was also a
and also handled a wide range of responsibilities in Member of the CII Policy Council and the technology
manufacturing, operations and information & discussion group ‘Farm to Table - driving India’s agriculture
digital technology. Puri served as the Chief Operating sector digitally’ constituted by the NITI Aayog.
Officer of ITC between July 2016 and January 2017, Presently, Puri is the President-Designate of CII.
and prior to that as President - FMCG Businesses He is the Chairman of the Advisory Council of the
since December 2014. Earlier, he was the CII-ITC Centre of Excellence for Sustainable
Divisional Chief Executive of the Tobacco Division Development, Co-Chair of the CII Associations Council
since December 2009, with additional responsibility for as well as the CII Membership Council, and a
the Company’s Trade Marketing & Distribution Vertical Member of the CII Economic Affairs Council. He is a
from August 2012. He led ITC Infotech India Limited, Director on the Board of US-India Strategic Partnership
a wholly owned subsidiary of ITC, as its Forum, Co-Chair of the ‘Business Commission to
Managing Director from May 2006 to August 2009. Tackle Inequality’ set up by the World Business Council
Puri served between October 2001 and April 2006 as for Sustainable Development, Member of the
the Managing Director of Surya Nepal Private Limited, BRICS Business Council, and also a Member
a joint venture subsidiary company of ITC in Nepal. of the Governing Body of the National Council of
Spearheading the ‘ITC Next’ vision, Puri has driven Applied Economic Research. Puri is also the Chairman
an extensive strategy reset to define new vectors of of the ‘Action Council on ESG in Business’ under the
growth for each business with greater focus on aegis of Business 20 India, the official dialogue forum
consumer-centricity, agility, resilience and innovation with the global business community as part of
to build an even more competitive, future-ready and India’s G20 Presidency.
inclusive enterprise. Puri’s emphasis on purposeful Puri was conferred with the ‘Distinguished Alumnus Award
and cutting-edge innovation has led to the creation of the year 2018’ by the Indian Institute of Technology,
of sharp focused R&D platforms in areas aligned to Kanpur. He was bestowed with an Honorary Doctorate
market opportunities, that is continuously developing by the XIM University, Bhubaneshwar, and also honoured
several differentiated as well as first-to-market with the ‘IMPACT Person of the Year, 2020’ Award by
products addressing the dynamic and evolving exchange4media, a leading online news platform.
2 ITC Limited REPORT AND ACCOUNTS 2023

Your Directors
Other Directorships Member of the India-Sri Lanka CEOs Forum, and

Name of the company Position Council Member & Executive Committee Member
of the National Culture Fund, Ministry of Culture -
ITC Infotech India Limited Chairman &
Government of India. He is presently a Member of the
Non-Executive Director
National Tourism Advisory Council constituted
ITC Infotech Limited, UK * Chairman &
by the Ministry of Tourism - Government of India,
Chairman of the Federation of Associations in
ITC Infotech (USA), Inc. * Chairman &
Indian Tourism & Hospitality, and a Member of the
Executive Committee of the Hotel Association of India.
Surya Nepal Private Limited * Chairman & He is also a Member of the Senior Advisory Council
Non-Executive Director of the Sustainability Hospitality Alliance.
Indian School of Business Member, Governing
Anand was recognised as the ‘Corporate Hotelier
Board and Executive
of the World 2019’ by Hotels Magazine USA.
Board
He was also conferred with Lifetime Achievement
Committee Membership of other companies: Nil Awards at the Hotel Investment Conference -
South Asia 2022 and by the Iconic Forum 2023, and
the ‘Outstanding Exemplar in the Promotion of Travel,
N. Anand Tourism & Hospitality Award’ by FOODFOOD Awards
Nakul Anand (66), DIN: 00022279, was appointed as 2022. In April 2023, he has been honoured with
a Wholetime Director on the Board of ITC effective the prestigious ‘Hall of Fame Award’ at the
January 3, 2011. He oversees the Hospitality and Global Hospitality Awards 2023 organised by the
Travel & Tourism Businesses of ITC. International Hospitality Council, London, in collaboration
with the International Institute of Hotel Management.
An Economics Honours Graduate from Delhi University
with an AMP Degree from the Bond University, Australia, Other Directorships
Anand joined erstwhile ITC Hotels Limited as a Name of the company Position
Management Trainee in 1978. He has also served as the
Managing Director of that company from 2003 to 2005. International Travel Chairman &
House Limited # Non-Executive Director
In a career that spans more than four decades,
Anand has been acknowledged for his vision, Gujarat Hotels Limited # Chairman &
commitment and for his role as a thought leader to the Non-Executive Director
tourism and hospitality industry. Building on ITC’s ethos Landbase India Limited Chairman &
as an exemplar in sustainability, he has passionately
advocated the imperative for a sustainable business
model of hoteliering. Leveraging the significant Fortune Park Hotels Limited Chairman &
learnings of sustainable excellence within ITC, Non-Executive Director
he has led the team at ITC Hotels to pioneer the WelcomHotels Lanka Chairman &
concept of ‘Responsible Luxury’ in the hospitality
(Private) Limited * Non-Executive Director
industry. This commitment has won global recognition
for ITC Hotels as the largest chain of hotels in the Srinivasa Resorts Limited Vice-Chairman &
world having the maximum number of LEED® Platinum Non-Executive Director
certified properties. Bay Islands Hotels Limited Non-Executive Director
Anand has been a past President of the Hotel
Maharaja Heritage Resorts Non-Executive Director
Association of India and past Chairman of the
Limited
CII National Tourism Committee. He was also a

Your Directors
Committee Membership of other companies Other Directorships

Name of the company Committee Position Name of the company Position
International Travel Nominations & Member Russell Credit Limited Chairman &
House Limited Remuneration
Committee
Greenacre Holdings Limited Chairman &

Gujarat Hotels Limited Nominations and Member
Remuneration
Committee
Gold Flake Corporation Limited Chairman &
ITC Integrated Business Chairman &

S. Dutta Services Limited Non-Executive Director
Supratim Dutta (56), DIN: 01804345, was appointed
ITC Infotech India Limited Non-Executive Director
as a Wholetime Director on the Board of ITC effective
July 22, 2022. He is, inter alia, responsible for Finance,
ITC Infotech Limited, UK * Non-Executive Director
Accounting, Internal Audit & IT Functions and
also for the Investment Subsidiaries of the Company. ITC Infotech (USA), Inc. * Non-Executive Director
He continues to be the Chief Financial Officer (‘CFO’)
of the Company. Surya Nepal Private Limited * Non-Executive Director
A qualified Chartered Accountant and WelcomHotels Lanka Non-Executive Director

Cost Accountant, Dutta joined ITC in November 1990. (Private) Limited *
In a career spanning over three decades at ITC,
he has held various senior roles in the finance function,
Committee Membership of other companies
both at the business and corporate level. Before
becoming the CFO, he held the position Name of the company Committee Position
of the Corporate Financial Controller of the Company
Russell Credit Limited Audit Committee Chairman
responsible for Accounts, Taxation and Finance
operations, and prior to that, he was
CSR Committee Chairman
Executive Vice President - Corporate Finance in charge
of the Corporate Treasury, Strategic Planning and Nomination and Member
Corporate Planning Functions of the Company. Remuneration
He has handled various aspects of finance including Committee
Planning, Treasury, M&A, Accounting, Taxation, IT,
Investor Relations and business strategy. ITC Infotech India Audit Committee Chairman
Limited
Presently, Dutta is a Member of the CII National Nomination and Member
Committee on Financial Reporting and of the Remuneration
World Business Council for Sustainable Development Committee
CFO Network.

Your Directors
B. Sumant S. Banerjee
Sumant Bhargavan (59), DIN: 01732482, was appointed Shilabhadra Banerjee (74), DIN: 02922331, joined
as a Wholetime Director on the Board of ITC effective the ITC Board as a Non-Executive Director effective
November 16, 2018. He oversees the Paperboards, July 24, 2014 and was appointed as an Independent
Paper and Packaging as well as the Personal Care Director effective July 30, 2014.
and Education & Stationery Products Businesses of the
Banerjee, a Masters in History from St. Stephen’s
Company, and also the Trade Marketing &
College, Delhi, Post Graduate Diploma holder in
Distribution (‘TM&D’) Vertical. Sumant, an alumnus
Public Administration from the Indian Institute of
of the National Institute of Technology, Durgapur,
Public Administration, New Delhi, and an M. Phil in
joined ITC in January 1986, and has handled a wide
Social Sciences from the University of Panjab,
range of responsibilities across several businesses.
joined the Indian Administrative Service in 1971.
Prior to his appointment as a Director on the
In a career spanning over 37 years, he has held
Board of ITC, he was President - FMCG Businesses
several eminent positions in the Government of India
since April 2016. Earlier, he was the
including that of Joint Secretary in the Ministry of
Divisional Chief Executive of the Tobacco Division.
Petroleum and Natural Gas and the then
He also held additional responsibility of the
Ministry of Urban Development. Banerjee was
TM&D Vertical as its Chief Executive for a period of
Director General (Acquisition) in the Ministry of Defence
one year from October 2016. He spent his first 19 years
and retired as Secretary, Ministry of Tourism in
with ITC in Manufacturing operations of the
October 2008. He has been a Visiting Fellow at the
Tobacco Division and has worked in four production
Queen Elizabeth House, University of Oxford, UK.
units as well as at the Head Office. In October 2004,
Banerjee also served on the Board of the Company
he moved to the Foods Business and set up the
from February 2010 to March 2014.
Snack Food category under the brand name ‘Bingo!’.
He has led ITC Infotech India Limited, a wholly owned Banerjee does not hold directorship of any other company.
subsidiary of ITC, as its Managing Director from
September 2009 to October 2014, and has been on
the Boards of ITC Infotech’s wholly owned subsidiaries
in the UK and the USA. H. Bhargava
Sumant has also been on the Boards of Surya Nepal Hemant Bhargava (63), DIN: 01922717, joined the
Private Limited and The Tobacco Institute of India. ITC Board as a Non-Executive Independent Director
Presently, he serves as a Member of the CII Eastern effective December 20, 2021.
Region Council.
Bhargava, a Post Graduate in Economics from the
Other Directorships Lucknow University, has also studied Masters in
Name of the company Position Financial Management from the Jamnalal Bajaj Institute
ITC Fibre Innovations Limited Chairman & of Management Studies. He started his corporate
Non-Executive Director journey in 1981 with the Life Insurance Corporation of
India (‘LIC’) as the youngest Direct Recruit Officer,
The Tollygunge Club Limited Member,
and reached the zenith of becoming the
General Committee
Chairman in-charge and Managing Director of the
Committee Membership of other companies: Nil organisation in January 2019. He was also appointed

Your Directors
as the Non-Executive Chairman of IDBI Bank and P. R. Chittaranjan

LIC Housing Finance Limited in January 2019.
Peter Rajatilakan Chittaranjan (59), DIN: 09773278,
During his long tenure of 38 years, he worked across
joined the ITC Board as a Non-Executive Director
diverse set of roles both in India and abroad, building
effective February 3, 2023, representing the
multi-dimensional experience in different capacities,
General Insurers’ (Public Sector) Association of India.
especially in Marketing, International Operations and
new ventures. Adept at establishing new strategic Chittaranjan is the General Manager and Wholetime
initiatives with multiple stakeholders and designing Director of National Insurance Company Limited (‘NICL’)
innovative marketing & sales campaigns, Bhargava effective November 1, 2022, and has more than
has guided several skilled professionals across 36 years of experience at NICL. A Post Graduate
the finance value chain. He also served on the in Economics, he joined the NICL as Assistant
Board of the Company from July 2018 to Administrative Officer (Generalist) in July 1986.
August 2021. He has thereafter served in various capacities at NICL,
Other Directorships including Motor Hub in-charge and Divisional in-charge

in the North-Eastern region of India.
Name of the company Position
Chittaranjan, as the General Manager of NICL since
The Tata Power Company Nominee Director
July 27, 2020, has handled Information Technology,
Limited #
Human Resources, Corporate Social Responsibility,
Larsen & Toubro Limited # Nominee Director
Publicity and Digital Marketing, Research &
UGRO Capital Limited # Independent Director Development, Liability and Aviation Insurance,
and all India Motor Strategic Tie-ups of NICL.
West End Investment and Independent Director
Finance Consultancy He has also driven the cyber security initiatives at NICL
Private Limited particularly during the COVID-19 pandemic,
and has served as the Chief Risk Officer of NICL
Providence Life Limited, Non-Executive Director
PCC, Mauritius * from August 2020 to May 2021. Prior to this,
he has held the positions of Chief Manager,
Committee Membership of other companies Deputy General Manager and Bangalore Regional
Name of the company Committee Position Officer in-charge of NICL.
The Tata Power Stakeholders Chairman Other Directorships

Company Limited Relationship
Committee
National Insurance Company Wholetime Director
Larsen & Toubro Limited Stakeholders Member
Limited #
Relationship
Committee
UGRO Capital Limited Nomination and Chairman Name of the company Committee Position
Remuneration
National Insurance Corporate Social Member
Committee
Company Limited Responsibility
Audit Committee Member Committee

Your Directors
A. Duggal Committee Membership of other companies

Name of the company Committee Position
Arun Duggal (76), DIN: 00024262, joined the ITC Board
as a Non-Executive Independent Director effective ICRA Limited Audit Committee Member
September 15, 2014. Stakeholders Member
Relationship
Duggal, a Mechanical Engineer from the Indian Institute
Committee
of Technology, Delhi (‘IIT Delhi’), and an M.B.A.
Dr. Lal PathLabs Limited Audit Committee Member
from the Indian Institute of Management, Ahmedabad
(‘IIM Ahmedabad’), is an international banker with Nomination & Member
global experience in financial strategy, M&A and Remuneration
Committee
capital raising. His professional career includes
26 years with Bank of America (‘BoA’), primarily in the ASK Automotive Limited Audit Committee Chairman
USA, Hong Kong and Japan, with his last assignment Stakeholders Member
as Chief Executive of BoA, India, from 1998 to 2001. Relationship
He was the Chief Financial Officer of HCL Technologies Committee
Limited, India, from 2001 to 2003. He has also been Nomination and Member
the Chairman of the American Chamber of Commerce, Remuneration
India, and on the Board of Governors of the Committee
National Institute of Bank Management. He is presently
a Trustee of the Chennai Mathematical Institute.
Duggal is involved in several initiatives in social &

M. Gupta
educational sectors and is founder of FICCI’s
‘Women on Corporate Boards’ Programme, the Mukesh Gupta (61), DIN: 06638754, joined the
‘Centre of Excellence for Research in Climate Change ITC Board as a Non-Executive Director effective
and Air Pollution’ at IIT Delhi, and the ‘Centre for ESG October 27, 2021, representing LIC.
Research’ at IIM Ahmedabad. He is recipient Gupta holds Degrees of Bachelor in Science
of Distinguished Alumnus Awards from IIT Delhi and and Masters in Business Administration
IIM Ahmedabad. (Human Resources). He joined LIC as a Direct Recruit
Other Directorships Officer in 1984 and retired as its Managing Director on
September 30, 2021. During his long tenure of
37 years, he worked across diverse set of roles building
ICRA Limited # Chairman & multi-dimensional experience in different capacities,

Independent Director especially in Insurance and Marketing. Gupta held
prominent positions in the Corporate Office and
Dr. Lal PathLabs Limited # Independent Director
three major zones of LIC, including Executive Director
ASK Automotive Limited Independent Director (Personnel) and Executive Director (Bancassurance) at
Corporate Office, Marketing Manager of Bikaner Division,
Davenport Management Non-Executive Director
Senior Divisional Manager of two Divisions viz.,
Consultants Services
Amritsar and Hyderabad, Regional Manager
Private Limited
(Bancassurance & Alternate Channels) of

Your Directors
LIC’s South Central Zone, Regional Manager Other Directorships

(Marketing) of Western Zone, and Zonal Manager Name of the company Position
of the Central Zone.
Bharti Airtel Limited # Independent Director
Other Directorships UrbanClap Technologies India Independent Director
Name of the company Position Private Limited
IDBI Bank Limited # Nominee Director Committee Membership of other companies

Jindal Worldwide Limited # Independent Director Name of the company Committee Position
Bharti Airtel Limited Audit Committee Member

Stakeholders Member
Relationship
IDBI Bank Limited Audit Committee Member Committee
Nomination & Member UrbanClap Technologies Audit Committee Chairman
Remuneration India Private Limited
Nomination & Member
Committee
Remuneration
Committee
S. Mukherjee
Shyamal Mukherjee (63), DIN: 03024803, joined the A. Nayak

ITC Board as a Non-Executive Independent Director
Anand Nayak (71), DIN: 00973758, joined the
effective August 11, 2021.
Mukherjee is a Chartered Accountant and also holds effective July 13, 2019.
Degrees of Bachelor in Commerce and Law from
Nayak is a Post Graduate in Personnel Management
Delhi University. He is the former Chairman and
and Industrial Relations from XLRI, Jamshedpur,
Senior Partner of PricewaterhouseCoopers (‘PwC’) in
from where he graduated in 1973. He joined ITC the
India. With over 37 years of experience, Mukherjee
same year and served for more than 42 years until his
started his professional journey with PwC in 1984
retirement in December 2015.
and became a Partner in 1993. Along the way, he
assumed several leadership roles, including During his long tenure with the Company, Nayak
PwC India’s Brand & Strategy Leader and Leader of held various portfolios and worked across several
PwC India’s Tax practice. As PwC’s Chairman, he was businesses as well as at Corporate Headquarters where
at the forefront of making it a more future-ready firm, he headed the Human Resources Function from 1996
investing in and strengthening the firm’s key capabilities to 2015. He served on the Corporate Management
across its people, go-to-market initiatives and internal Committee of ITC for over 18 years from 1997 to 2015.
transformation. He has been known for building a He was also responsible for overall management of
culture that is value-driven and encourages innovation Social Sector initiatives under the CSR agenda of ITC,
and mentored the Mission Sunehra Kal team in crafting
& robust governance. He is the Managing Trustee of
enduring sustainability solutions for rural India.
the Phanindranath Education Trust, Howrah, and also a
Member of the Bar Council of Delhi. Nayak does not hold directorship of any other company.

Your Directors
S. Panray A career diplomat from the Indian Foreign Service

from 1973 to 2011, she served the Government in
Sunil Panray (65), DIN: 09251023, was appointed as a several important positions including that of the Foreign
Non-Executive Director on the Board of ITC effective Secretary of India. She has represented India in several
August 11, 2021, as a representative of Tobacco countries during her distinguished career and was the
Manufacturers (India) Limited (‘TMI’), a subsidiary of first Indian woman to be appointed High Commissioner
British American Tobacco p.l.c. (‘BAT’). to Sri Lanka and Ambassador to China. She was also
Panray holds Degrees of Bachelor in Commerce and the first woman spokesperson of the Ministry of External
Masters in Business Administration from Concordia Affairs. After her retirement, she was appointed
University in Montreal, Canada. He is a retired senior Ambassador of India to the United States for a period of
executive. Panray started his professional journey as a two years from 2011 to 2013. She is the author of
Senior Auditor and Financial Consultant with Raymond ‘The Fractured Himalaya: India Tibet China, 1949 to 1962’,
Chabot Grant Thornton, Canada, and has held published in 2021.
senior leadership positions at Imasco Limited,
Imperial Tobacco, Canada, and BAT. He has also
Other Directorships
served as the Vice-President Finance and Treasurer Name of the company Position
of Canadian National Railway Company, the largest KEC International Limited # Independent Director
transcontinental public railway transportation company JSW Steel Limited # Independent Director
in Canada, from 2012 to 2016. During his professional
Adani Ports and Special Independent Director
career, he has played key leadership roles in complex Economic Zone Limited #
business and regulatory environments.
Panray does not hold directorship of any other company. Committee Membership of other companies
KEC International Limited Nomination and Member
N. Rao Remuneration
Committee
Nirupama Rao (72), DIN: 06954879, was appointed
Sustainability Member
as a Non-Executive Independent Director on the
and Corporate
Board of ITC effective April 8, 2016.
Social
A Post Graduate in English Literature, she is also a Responsibility
Fellow - Harvard University, Fellow - Brown University, Committee
Jawaharlal Nehru Fellow, and a recipient of the JSW Steel Limited CSR Committee Chairperson
Degree of Doctor of Letters (Honoris Causa) from the Stakeholders Member
Pondicherry University. She was conferred with the Relationship
Vanitha Ratna by the Government of Kerala in 2016. Committee
She is currently a Global Fellow of The Wilson Center Nomination & Member
in Washington, D.C., Council Member of the Remuneration
World Refugee & Migration Council, Council Member & Committee
Court Member of the Indian Institute of Science,
Adani Ports and Special Corporate Social Chairperson
Bengaluru, and an Advisor to the Board of US-India
Economic Zone Limited Responsibility
Business Council. She is also a Member of the Council
Committee
of Management of the National Institute of Advanced
Audit Committee Member
Studies as well as of the Board of Governors of the
Indian Council for Research on International Economic Nomination and Member
Remuneration
Relations, besides being a Founder Trustee of
Committee
The South Asian Symphony Foundation, Bengaluru.

Your Directors
A. K. Seth 1985 to 1991 working on foreign policy and security matters.

Thereafter, she led the Commercial Wing in the
Ajit Kumar Seth (71), DIN: 08504093, joined the
Indian Embassy in Washington as Minister (Commerce)
till 1995. She returned as Director General of the
effective July 13, 2019.
Indian Council of Cultural Relations overseeing India’s
An alumnus of St. Stephen’s College, Delhi, from where cultural diplomacy. She has had extensive experience in
he did his post-graduation in Chemistry, Seth obtained South Asia having worked on Bangladesh, Sri Lanka and
an M. Phil in Life Sciences from the Jawaharlal Nehru Maldives as Under Secretary and Deputy Secretary in
University, New Delhi, and a Masters in Development the Ministry of External Affairs. Later as Joint Secretary,
Finance from the University of Birmingham, UK. she headed divisions dealing with neighbours, Nepal
In 2015, the University of Birmingham conferred upon and Bhutan, and the South Asian Association for
him a Doctorate Honoris Causa. Regional Cooperation (‘SAARC’). As Additional
Secretary, she handled the UN and international
Seth is a retired IAS Officer with administrative
security issues. She served as Ambassador of India
experience of more than 41 years. He retired in
to Germany from 2005 to 2009 and then to the
June 2015 after serving for four years as the
United States from 2009 to 2011.
Cabinet Secretary of the Government of India, the highest
position in civil services. Thereafter, he was appointed Other Directorships
Chairman of the Public Enterprises Selection Board. Name of the company Position
In a varied and distinguished career, his past
Pidilite Industries Limited # Independent Director
assignments include postings in the Ministry of
Commerce, the Permanent Mission of India to the Adani Transmission Limited # Independent Director
United Nations at Geneva (dealing with GATT / UNCTAD) JK Tyre & Industries Limited # Independent Director
and the Ministry of Textiles. Earlier, in Uttar Pradesh,
he served as Principal Secretary - Rural Development,
Special Secretary - Industries, Divisional Commissioner Name of the company Committee Position
of Kumaon Division and District Magistrate, Lucknow. Pidilite Industries Limited Corporate Social Member
Responsibility
Seth does not hold directorship of any other company.
Committee
Adani Transmission Audit Committee Member

Limited
Nomination and Member
M. Shankar Remuneration
Meera Shankar (72), DIN: 06374957, was appointed Committee
as a Non-Executive Independent Director on the Corporate Social Member

Board of ITC effective September 6, 2012. Responsibility
Committee
A Post Graduate in English Literature, she joined
the Indian Foreign Service in 1973 and had an JK Tyre & Industries Corporate Social Member
Limited Responsibility
illustrious career spanning 38 years. She served
Committee
in the Prime Minister’s Office for six years from

Your Directors
D. R. Simpson Healthcare, Education, Investment Risk Assessment etc.

He has also served as a Director of the
David Robert Simpson (66), DIN: 07717430,
British Geological Survey.
was appointed as a Non-Executive Director on the
Other Directorships
Board of ITC effective January 27, 2017,
as a representative of TMI. Name of the company Position
Ecofin Global Utilities and Chairman &

Simpson holds a Masters Degree from the University of
Infrastructure Trust plc, UK * Non-Executive Director
Cambridge and is a qualified lawyer from the Guildford
M&G Credit Income Investment Chairman &
College of Law. He started his career in 1979 and has
Trust plc, UK * Non-Executive Director
held various leadership positions with major corporates
Aberdeen New India Non-Executive Director
including the investment banking arm of Barclays PLC
Investment Trust PLC, UK *
and as Global Head of M&A at KPMG LLP. He has a
European Transport Non-Executive Director
wide range of expertise and understanding of
Investments (UK) Limited *
diverse sectors spanning Investment Banking and
Private Equity, Infrastructure, Energy, Transport, Committee Membership of other companies: Nil
* Denotes foreign company

# Denotes Indian company whose securities are listed on a recognised stock exchange
Notes:
1. Other Directorships and Committee Memberships of Directors are as on 18th May, 2023.
2. Committee Memberships cover Committees under the Companies Act, 2013 viz., Audit Committee, Stakeholders Relationship Committee,
Nomination and Remuneration Committee and CSR Committee of Indian companies.

Report on
Corporate Governance
The Directors present the Company’s Report on ITC’s Corporate Governance structure, systems and
Corporate Governance pursuant to the Securities and processes are based on two core principles:
Exchange Board of India (Listing Obligations
(i) Management must have the executive freedom
and Disclosure Requirements) Regulations, 2015
to drive the enterprise forward without undue
(‘Listing Regulations’).
restraints, and
ITC Limited has been one of the frontrunners in India
to have put in place a formalised system of Corporate (ii) This freedom of management should be
exercised within a framework of effective
Governance. Its governance framework enjoins the
accountability.
highest standards of ethical and responsible conduct
of business to create value for all stakeholders. ITC believes that any meaningful policy on
Corporate Governance must empower the
THE COMPANY’S GOVERNANCE executive management of the Company. At the
PHILOSOPHY same time, Governance should create a
ITC defines Corporate Governance as a systemic mechanism of checks and balances to ensure that
process by which companies are directed and the decision-making powers vested in the executive
controlled to enhance their wealth-generating management are used with care and responsibility
capacity. Since large corporations employ a vast to meet stakeholders’ aspirations and societal
quantum of societal resources, ITC believes expectations.
that the governance process should ensure that From this definition and core principles of Corporate
these resources are utilised in a manner that Governance emerge the cornerstones of ITC’s
meets stakeholders’ aspirations and societal governance philosophy, namely trusteeship,
expectations. This belief is reflected in the transparency, ethical corporate citizenship,
Company’s deep commitment to contribute to empowerment & accountability and control.
the “triple bottom line”, namely conservation and ITC believes that the practice of each of these creates
development of the nation’s economic, social and the right corporate culture that fulfils the true purpose
environmental capital. of Corporate Governance.
The cornerstones of ITC’s governance philosophy are

trusteeship, transparency, ethical corporate citizenship,
empowerment & accountability and control.

Report on Corporate Governance
Trusteeship recognises that large corporations, which represent a coalition of interests, namely
those of the shareholders, other providers of capital, business associates and employees,
have both an economic and a social purpose, thereby casting the responsibility on the
Trusteeship Board of Directors to protect and enhance shareholder value, as well as fulfil obligations to
other stakeholders. Inherent in the concept of trusteeship is the responsibility to ensure equity,
namely, that the rights of all shareholders, large or small, are protected.
Transparency means explaining the Company’s policies and actions to those to whom it has
responsibilities. Externally, this means maximum appropriate disclosures without jeopardising
Transparency the Company’s strategic interests and internally, this means openness in the Company’s
relationship with its employees and in the conduct of its business. ITC believes transparency
enhances accountability.
Ethical Corporate Citizenship means setting exemplary standards of ethical behaviour,

Ethical both internally within the organisation, as well as in external relationships. ITC believes
Corporate that unethical behaviour corrupts organisational culture and undermines stakeholder value.
Citizenship Governance processes in ITC continuously reinforce and help realise the Company’s belief
in ethical corporate citizenship.
Empowerment is a process of unleashing creativity and innovation throughout the organisation

by truly vesting decision-making powers at the most appropriate levels and as close to the scene
Empowerment of action as feasible, thereby helping actualise the potential of its employees. Empowerment
& is an essential concomitant of ITC’s first core principle of governance that management must
Accountability have the freedom to drive the enterprise forward. ITC believes that empowerment combined
with accountability provides an impetus to performance and improves effectiveness, thereby
enhancing shareholder value.
Control ensures that freedom of management is exercised within a framework of checks and
balances and is designed to prevent misuse of power, facilitate timely management of change
Control and ensure effective management of risks. ITC believes that control is a necessary concomitant
of its second core principle of governance that freedom of management should be exercised
within a framework of appropriate checks and balances.
THE GOVERNANCE STRUCTURE (b) Strategic management of the Company,

The practice of Corporate Governance in ITC takes uncluttered by the day-to-day tasks of executive
place at three interlinked levels: management, remains focused and energised; and
Strategic supervision by the Board of Directors (c) Executive management of the divisional business
Strategic management by the Corporate Management
free from collective strategic responsibilities for
Committee
ITC as a whole, remains focused on enhancing the
Executive by the Divisional Chief Executive
management assisted by the Divisional quality, efficiency and effectiveness of the business
Management Committee to achieve best-in-class performance.
The three-tier governance structure ensures that:
The core roles of the key entities flow from this
(a) Strategic supervision (on behalf of the Shareholders), structure. These roles, in turn, determine the core
being free from involvement in the task of strategic
responsibilities of each entity. In order to discharge
management of the Company, can be conducted
by the Board with objectivity, thereby sharpening such responsibilities, each entity is empowered
accountability of management; formally with requisite powers.

The structure, processes and practices of governance Chairman: The Chairman is the Chief Executive of
are designed to support effective management of the Company. He is the Chairman of the Board and
multiple businesses while retaining focus on each the CMC, and also presides over General Meetings of
one of them. Shareholders. His primary role is to provide leadership
to the Board and the CMC for realising Company
The Governance Document that sets out the
goals in accordance with the charter approved by the
structure, policies and practices of governance is
Board. He is responsible, inter alia, for the working of
available on the Company’s corporate website at
the Board and the CMC, for ensuring that all relevant
https://www.itcportal.com/governance-document .
issues are on the agenda and that all Directors and
ROLES OF VARIOUS ENTITIES CMC Members are enabled and encouraged to play
a full part in the activities of the Board and the CMC,
Board of Directors (‘Board’): The primary role of the
respectively. He keeps the Board informed on
Board is that of trusteeship to protect and enhance
all matters of importance. He is also responsible for
shareholder value through strategic supervision of
balance of membership of the Board, subject to
ITC and its wholly owned subsidiaries. As trustees, Board and Shareholder approvals.
the Board ensures that the Company has clear
Non-Executive Director: Non-Executive Directors,
goals aligned to shareholder value and its growth.
including Independent Directors, play a critical role
The Board sets strategic goals and seeks
in imparting balance to the Board processes by
accountability for their fulfilment. The Board also
bringing independent judgement on issues of strategy,
provides direction and exercises appropriate control
performance, resources, standards of Company
to ensure that the Company is managed in a manner
conduct etc.
that fulfils stakeholders’ aspirations and societal
expectations. The Board, as part and parcel of Executive Director: The Executive Director assists
its functioning, annually reviews its role and evaluates the Board in realising its role of strategic supervision
its performance and that of the Board Committees & of the Company in pursuit of its purpose and goals.
As a member of the CMC, the Executive Director
the Directors.
contributes to the strategic management of the
Board Committees: The roles of the Board Committees Company’s businesses within Board approved
are determined by the Board from time to time, direction / framework. An Executive Director
details of which are provided below under the heading accountable to the Board for a business, assumes
‘Committees of the Board’. overall responsibility for its strategic management,
Corporate Management Committee (‘CMC’): The including governance processes and top management
primary role of the CMC is strategic management of effectiveness. Similarly, as Director accountable to the
the Company’s businesses within Board approved Board for a corporate function, the overall strategic
direction / framework and realisation of Company goals. responsibility for its performance forms part of the
The CMC also assesses the performance of the Executive Director’s role. In the context of the
businesses and allocates resources, and operates under multi-business character of the Company, an Executive
Director is in the nature of a Managing Director for
the strategic supervision and control of the Board.
those businesses and functions reporting to him.
Divisional Management Committee (‘DMC’): The
CMC Member: The CMC Member contributes to the
primary role of the DMC is executive management of
strategic management of the Company’s businesses
the business to realise tactical and strategic objectives
within Board approved direction / framework.
in accordance with the Board approved Business Plan.
A CMC Member accountable for a business, assumes
The Executive Committee for Business Vertical within responsibility for its strategic management, including
the Division is responsible to deliver comprehensive governance processes and top management
business results under the overall direction and effectiveness. Similarly, where accountable for a
supervision of the Divisional Chief Executive corporate function, the overall strategic responsibility for
supported by the DMC. its performance forms part of the CMC Member’s role.

Divisional Chief Executive: The Divisional

Director Category No. of No. of Membership(s) /
Chief Executive for a business has the executive other Chairmanship(s) of
responsibility for its day-to-day operations and Directorship(s) * Audit Committee /
provides leadership to the DMC in its task of executive Stakeholders
management of the business and the Verticals within Relationship
the Division. Committee of other
Indian public limited
The Chief Operating Officer of a Business Vertical is companies
responsible for providing leadership to the Vertical
S. Puri Chairman & 5 Nil
and realising the tactical & strategic objectives of the
Managing Director
respective business area.
N. Anand Executive Director 8 Nil
BOARD OF DIRECTORS
S. Dutta Executive Director & 9 2
Composition Chief Financial Officer [also as Chairman]
The ITC Board is a balanced Board, comprising
B. Sumant Executive Director 2 Nil
Executive and Non-Executive Directors.
The Non-Executive Directors include independent S. Banerjee Independent Director Nil Nil
professionals. Independent Directors represent
at least 50% of the total strength of the Board. H. Bhargava Independent Director 5 3
The Governance Policy of the Company, inter alia, A. Duggal Independent Director 3 3
requires that Non-Executive Directors be drawn from
S. Mukherjee Independent Director 2 2
amongst eminent professionals, with experience in
business / finance / law / public administration and A. Nayak Independent Director Nil Nil
enterprises. The present composition of the Board
N. Rao Independent Director 3 2
represents an optimal mix of professionalism, knowledge
and experience. The Policy on Board Diversity requires A. K. Seth Independent Director Nil Nil
the Board to have balance of skills, competencies,
experience and diversity of perspectives appropriate to M. Shankar Independent Director 3 1
the Company. The Directors of the Company possess P. R. Chittaranjan Non-Executive Director 1 Nil
the skills, expertise and competencies, as identified
Representative of the
by the Board, and provided in the Annexure forming General Insurers’
part of this Report. (Public Sector) Association
of India as Investor
In terms of the applicable regulatory requirements
read with the Articles of Association of the Company, M. Gupta Non-Executive Director 2 1
the strength of the Board shall not be fewer than Representative of the
six nor more than eighteen. The present strength Life Insurance Corporation
of the Board is sixteen comprising the Chairman & of India as Investor
Managing Director, three Executive Directors,
S. Panray Non-Executive Director Nil Nil
eight Non-Executive Independent Directors, of which
two are Women Directors, and four other Representative of Tobacco
Non-Executive Directors. Manufacturers (India)
Limited (‘TMI’),
Composition of the Board as on 31st March, 2023: a subsidiary of British
American Tobacco p.l.c.,
Category No. of Percentage to as Investor
Directors total no. of Directors
D. R. Simpson Non-Executive Director 4 Nil
Executive Directors 4 25
Representative of TMI
Non-Executive Independent Directors 8 50
as Investor
Other Non-Executive Directors 4 25
* Details with respect to other Directorships are provided under the section ‘Your Directors’
Total 16 100
in the Report and Accounts.

Meetings and Attendance S

ignificant court judgement or order passing
strictures, if any, on the conduct of the Company or a
The Company’s Governance Policy requires the
subsidiary of the Company or any employee, which
Board to meet at least five times a year.
could negatively impact the Company’s image.
The tentative annual calendar of meetings is
Product liability claims of a substantial nature, if any.
broadly determined at the beginning of each year.
The intervening period between two Board Meetings Default, if any, in payment of dues to any major creditor.
was well within the maximum gap of 120 days W
rite-offs / disposals of fixed assets, inventories,
prescribed under the Listing Regulations. receivables, advances etc.
S
ignificant development in Human Resources /
Board Agenda
Industrial Relations.
Meetings are governed by a structured agenda. N
on-compliance of any regulatory or listing requirements
The Board members, in consultation with the Chairman, and in relation to shareholders’ services.
may bring up any matter for the consideration of Post-meeting follow-up system
the Board. All major agenda items are backed by
The Governance processes in the Company include
comprehensive background information to enable the an effective post-meeting follow-up, review and
Board to take informed decisions. Agenda papers are reporting process for action taken / pending on
generally circulated seven to fourteen days prior to the decisions of the Board, the Board Committees, the
Board Meeting. CMC and the DMCs.
Information placed before the Board Details of Board Meetings during the financial year
During the financial year ended 31st March, 2023,
In terms of the Company’s Governance Policy, all
six meetings of the Board were held, as follows:
statutory and other significant & material information
are placed before the Board to enable it to discharge Sl. Date Board Strength No. of
its responsibility of strategic supervision of the No. Directors
present
Company as trustees of Shareholders. The following
1 18th April, 2022 16 16
in particular are also tabled for the Board’s
approval / periodic review or information: 2 18th May, 2022 16 15
3 20th July, 2022 16 16
A
nnual operating plans & budgets and periodic
4 1st August, 2022 16 16
review of the Company’s businesses.
5 20th October, 2022 16 16
Q
uarterly performance including business-wise 6 3rd February, 2023 15 14
financials.
Attendance at Board Meetings and at
E
xternal Audit Management Reports (through the
Annual General Meeting (‘AGM’) during the
Audit Committee).
financial year
Status of safety and legal compliance.
Director No. of Board Attendance at
S
tatus and effectiveness of risk management Meetings attended last AGM
plans. S. Puri 6 Yes
S
uccession to senior management (through the N. Anand 6 Yes
1
Nomination & Compensation Committee). S. Dutta 3 N.A.
B. Sumant 6 Yes
S
tatutory compliance reports from business
units / corporate functions. S. Banerjee 6 Yes
H. Bhargava 6 Yes
S
how cause / demand / prosecution / adjudication
P. R. Chittaranjan 2 N.A. N.A.
notices, if any, from revenue authorities which
A. Duggal 6 Yes
are considered materially important, including
M. Gupta 6 Yes
any exposure that exceeds 1% of the Company’s
net worth, and their outcome. S. Mukherjee 6 Yes

Attendance at Board Meetings and at AGM during The role of the Committee includes the following:
the financial year (Contd.) (a) To oversee the Company’s financial reporting
Director No. of Board Attendance at process and the disclosure of its financial
Meetings attended last AGM information to ensure that the financial statements
are correct, sufficient and credible;
A. Nayak 6 Yes
(b) To recommend the appointment, remuneration
S. Panray 6 Yes
and removal of Statutory and Cost Auditors;
N. Rao 6 Yes
(c) To recommend the appointment of the
A. K. Seth 6 Yes Chief Financial Officer of the Company;
M. Shankar 5 Yes (d) To approve transactions with related parties,
D. R. Simpson 6 Yes including modifications thereto;
N. Doda 3 4 Yes (e) To evaluate the Company’s internal financial
R. Tandon 4 3 Yes
controls and risk management systems;
(f) To review with the management the following:
1. Appointed as Executive Director w.e.f. 22nd July, 2022.
2. Appointed as Non-Executive Director w.e.f. 3rd February, 2023. (i) Annual financial statements and
3. Resigned as Non-Executive Director w.e.f. 20th January, 2023. Auditor’s Report thereon before submission
4. Ceased to be Executive Director w.e.f. 22nd July, 2022 upon completion of term.
to the Board for approval;
COMMITTEES OF THE BOARD (ii) Quarterly financial statements before
submission to the Board for approval;
Currently, there are five Board Committees –
the Audit Committee, the Nomination & Compensation (g) To review the following:
Committee, the Securityholders Relationship Committee, (i) Management discussion and analysis of
the CSR and Sustainability Committee and the financial condition & results of operations,
Independent Directors Committee. The terms of and matters required to be included in the
reference of the Committees are determined by the Directors’ Responsibility Statement;
Board from time to time, other than the Independent (ii) Adequacy of internal control systems and the
Directors Committee the terms of reference of which Company’s statement on the same prior to
have been adopted as prescribed under law. endorsement by the Board, such review to be
Meetings of Board Committees are normally convened done in consultation with the management,
by the respective Committee Chairman. Matters requiring and Statutory & Internal Auditors;
the Board’s attention / approval, as emanating from the (iii) Adequacy and effectiveness of internal
Board Committee Meetings, are placed before the Board control systems laid down in the Company for
with clearance of the Committee Chairman. compliance with the provisions of the
All the recommendations made by Board Committees Securities and Exchange Board of India
during the year were accepted by the Board. Minutes of (Prohibition of Insider Trading) Regulations, 2015;
Board Committee Meetings are placed before the Board. (iv) Internal Audit Reports and discussion with
The role and composition of these Committees, including Internal Auditors on any significant findings
the number of meetings held during the financial year and follow-up thereon;
and the related attendance, are provided below. (v) Statutory Auditors’ independence and
performance, and effectiveness of the
I. AUDIT COMMITTEE audit process;
The Audit Committee provides reassurance to the (vi) System for storage, retrieval, security etc.
Board on the existence of an effective internal control of books of accounts maintained in the
environment that ensures: electronic form;
efficiency and effectiveness of operations, both (vii) Functioning of Whistleblower mechanism in
domestic and overseas. the Company;
safeguarding of assets and adequacy of provisions (viii) Financial statements, including investments,
for all liabilities. of subsidiary companies;
reliability of financial and other management (ix) Utilisation of loans and / or advances and
information and adequacy of disclosures. investments by the Company to / in the
compliance with all relevant statutes. subsidiary companies.

Composition II. NOMINATION & COMPENSATION COMMITTEE

The Audit Committee presently comprises four The Nomination and Remuneration Committee of
Independent Directors. The Chairman of the the Board, under the nomenclature ‘Nomination &
Committee is also an Independent Director. Compensation Committee’, inter alia, identifies
The Executive Director & Chief Financial Officer, the persons qualified to become Directors, and
Head of Internal Audit and the representative of recommends to the Board the appointment,
the Statutory Auditors are Invitees to the meetings remuneration and removal of the Directors and
senior management. The Committee’s role also
of the Audit Committee. The Head of Internal Audit
includes formulation of criteria for evaluation of
is the Coordinator and the Company Secretary is
performance of the Directors & the Board as a whole,
the Secretary to the Committee. The representatives
and administration of the Employee Stock
of the Cost Auditors are invited to meetings of the
Option Schemes of the Company.
Audit Committee whenever matters relating to
cost audit are considered. All members of the Composition
Committee are financially literate; three members, The Nomination & Compensation Committee
including the Chairman of the Committee, have presently comprises three Independent Directors and
accounting and financial management expertise. the Chairman of the Company. The Chairman of the
The names of the members of the Audit Committee, Committee is an Independent Director. The Company
including its Chairman, are provided under the section Secretary is the Secretary to the Committee.
‘Board of Directors and Committees’ in the The names of the members of the Nomination &
Report and Accounts. Compensation Committee, including its Chairman, are
provided under the section ‘Board of Directors and
Meetings and Attendance Committees’ in the Report and Accounts.
Details of Audit Committee Meetings during the
Meetings and Attendance
financial year
Details of Nomination & Compensation Committee
During the financial year ended 31st March, 2023, Meetings during the financial year
seven meetings of the Audit Committee were held,
as follows:
five meetings of the Nomination & Compensation
Sl. Date Committee No. of Members Committee were held, as follows:
No. Strength present
Sl. Date Committee No. of
1 4th May, 2022 4 4 No. Strength Members
2 18th May, 2022 4 4 present
3 11th July, 2022 4 4 1 18th April, 2022 4 4
4 1st August, 2022 4 4 2 17th May, 2022 4 4
5 20th October, 2022 4 4 3 19th July, 2022 4 4
6 17th January, 2023 4 4 4 20th October, 2022 4 4
7 3rd February, 2023 4 4 5 3rd February, 2023 4 3
Attendance at Audit Committee Meetings during Attendance at Nomination & Compensation

the financial year Committee Meetings during the financial year
Member No. of Meetings attended Member No. of Meetings attended
A. Duggal 7 S. Banerjee 5
S. Banerjee 7 A. Nayak 5
H. Bhargava 7 S. Puri 5
S. Mukherjee 7 M. Shankar 4

Remuneration Policy and regulatory provisions, and is payable on a

ITC’s Remuneration strategy is performance based, uniform basis to reinforce the principle of collective
competitive and values led. It is designed to reward responsibility. Non-Executive Directors are also
holistic performance that is in congruence with the entitled to sitting fees for attending the meetings of
Company’s “triple bottom line” approach to business, the Board and its Committees. The sitting fees as
to attract and retain high quality talent and is anchored determined by the Board are ` 1,00,000/- for each
on ITC’s values, all of which are integral in pursuit of meeting of the Board, ` 50,000/- for each meeting of
the Company’s vision and mission of enhancing the the Audit Committee, Nomination & Compensation
wealth generating capability of the enterprise in a Committee, CSR and Sustainability Committee, and
globalised environment, while delivering superior and Independent Directors Committee, and ` 10,000/- for
sustainable stakeholder value. The Remuneration each meeting of the Securityholders Relationship
Policy of the Company is market-led and factors in the Committee. Non-Executive Directors are also entitled
competitive context of each business. The Company to coverage under Personal Accident Insurance.
has adopted a comprehensive ‘Total Rewards’ Details of Remuneration paid to the Directors
approach to remuneration that, inter alia, promotes a during the financial year ended 31st March, 2023
superior quality of personal and work life by combining (` in Lakhs)
both cash and non-cash components / benefits.
Director Basic / Perquisites / Performance Sitting Total
The Company’s Policy on remuneration of Consolidated Other Bonus / Fees
Directors, Key Managerial Personnel and Salary Benefits Long Term
other employees, as approved by the Board, Incentives /
may be accessed on the Company’s corporate website Commission
at https://www.itcportal.com/remuneration-policy .
S. Puri 288.00 57.38 1,286.57 - 1,631.95
There has been no change in the Policy during the year.
N. Anand 168.00 91.66 559.33 - 818.99
Remuneration of Directors S. Dutta 1 108.19 20.43 72.06 - 200.68
Remuneration of the Chairman and the other B. Sumant 168.00 31.23 559.33 - 758.56
Executive Directors is determined by the Board on the
S. Banerjee - - 90.00 12.50 102.50
recommendation of the Nomination & Compensation
Committee, subject to the approval of the Shareholders. H. Bhargava 2 - - 60.66 # 10.00 70.66
3
The Chairman and the other Executive Directors P. R. Chittaranjan - - - 0.40 * 0.40
are entitled to performance bonus for each financial A. Duggal - - 90.00 11.50 101.50
year up to a maximum of 300% and 200% of their
M. Gupta 4 - - 38.47 * 7.50 45.97
basic / consolidated salary, respectively, as may be
5
determined by the Board on the recommendation S. Mukherjee - - 57.45 10.00 67.45
of the Nomination & Compensation Committee; A. Nayak - - 90.00 10.90 100.90
such remuneration is linked to the performance of S. Panray 6 - - 57.45 7.50 64.95
the Company inasmuch as the performance bonus
is based on various qualitative and quantitative N. Rao - - 90.00 8.00 98.00
performance criteria. Apart from fixed elements of A. K. Seth - - 90.00 8.00 98.00
remuneration and benefits / perquisites, the Chairman M. Shankar - - 90.00 9.00 99.00
and the other Executive Directors are also eligible D. R. Simpson - - 90.00 7.50 97.50
for Long Term Incentives, including Stock Options,
as may be determined by the Nomination & N. Doda 7 - - 57.45 * 6.30 * 63.75
Compensation Committee and / or the Board; such A. Jerath 8 - - 7.40 * - 7.40
incentives are linked to individual performance and S. B. Mathur 9 - - 41.18 - 41.18
the overall performance of the Company, including
R. Tandon 10 47.81 148.62 520.65 - 717.08
Sustainability goals. The maximum annual value of
# Includes ` 35.51 Lakhs paid to the Public Financial Institution the Director represented.
such Long Term Incentives is 0.10% and 0.05% for the
* Paid to the Public Financial Institution the Director represents / represented.
Chairman and each of the other Executive Directors, 1. Appointed as Executive Director w.e.f. 22nd July, 2022.
respectively, of the net profits of the Company for 2. Resigned as Non-Executive Director w.e.f. 23rd August, 2021; Appointed as Independent Director
the immediately preceding financial year. w.e.f. 20th December, 2021.
3. Appointed as Non-Executive Director w.e.f. 3rd February, 2023.
Non-Executive Directors, including Independent 4. Appointed as Non-Executive Director w.e.f. 27th October, 2021.
Directors, are entitled to remuneration by way of 5. Appointed as Independent Director w.e.f. 11th August, 2021.
6. Appointed as Non-Executive Director w.e.f. 11th August, 2021.
commission for each financial year, ranging between 7. Appointed as Non-Executive Director w.e.f. 11th August, 2021 and resigned w.e.f.
` 70,00,000/- and ` 1,00,00,000/- individually, as 20th January, 2023.
approved by the Shareholders. Non-Executive 8. Resigned as Non-Executive Director w.e.f. 1st May, 2021.
9. Ceased to be Independent Director w.e.f. 15th September, 2021 upon completion of term.
Directors’ commission is determined by the 10. Ceased to be Executive Director w.e.f. 22nd July, 2022 upon completion of term.
Board, based inter alia on Company performance Note: Disclosure with respect to Non-Executive Directors - Pecuniary relationship or transaction: None.

Employee Stock Option Schemes Service Contract, Severance Fee and Notice Period
The Company granted 13,76,300 Options during The appointment of the Chairman and the other
the financial year to certain eligible employees and Executive Directors is governed by resolutions
Directors of the Company at ‘market price’ as defined passed by the Board and the Shareholders of the
under the Securities and Exchange Board of India Company, which cover the terms and conditions of
(Share Based Employee Benefits and Sweat Equity) such appointment, read with the service rules of the
Regulations, 2021. Company. A separate Service Contract is not entered
into by the Company with those elevated to the Board
Each Option entitles the holder thereof to apply for and from the management cadre, since they already
be allotted ten Ordinary Shares of the Company of have a Service Contract with the Company. Letters
` 1/- each upon payment of the exercise price during of appointment have been issued by the Company to
the exercise period. The exercise period commences the Independent Directors, detailing their roles, duties,
from the date of vesting of the Options and expires responsibilities etc.
at the end of five years from the date of such vesting.
There is no separate provision for payment of
Options vest as per the following schedule: severance fee under the resolutions governing the
appointment of Executive Directors who have all been
From the date of grant of the Options % of Options vest
drawn from the management cadre. The statutory
On completion of 12 months 30%
provisions will however apply. With respect to
On completion of 24 months 30% notice period, the service rules of the Company
On completion of 36 months 40% read with the statutory provisions will apply.
Shareholding and Stock Options of Directors Performance Evaluation
Director No. of Ordinary Shares No. of Options granted Performance evaluation of the Board, the Board
of ` 1/- each held during the Committees and the individual Directors was carried
(singly / jointly) financial year out by the Board in accordance with the Policy
as on 31st March, 2023 approved by the Nomination & Compensation
S. Puri 6,04,324 1,34,500 Committee in this regard; brief details of the same are
N. Anand 11,69,000 67,250 provided in the ‘Report of the Board of Directors &
S. Dutta 7,93,580 18,750 * Management Discussion and Analysis’, forming part of
B. Sumant 4,35,401 67,250 the Report and Accounts.
S. Banerjee Nil Nil III. SECURITYHOLDERS RELATIONSHIP COMMITTEE
H. Bhargava Nil Nil The Stakeholders Relationship Committee of the
P. R. Chittaranjan Nil Nil Board, under the nomenclature ‘Securityholders
A. Duggal Nil Nil Relationship Committee’, primarily oversees redressal
M. Gupta Nil Nil of shareholder and investor grievances, approves
S. Mukherjee 21,000 Nil transfer & transmission of shares, sub-division /
A. Nayak 12,24,955 Nil consolidation / renewal of share certificates, issue of
duplicate share certificates, and allots shares upon
S. Panray Nil Nil
exercise of Options under the Company’s Employee
N. Rao Nil Nil
Stock Option Schemes. The Committee also reviews
A. K. Seth 1,32,480 Nil adherence to the service standards adopted by the
M. Shankar 45,000 Nil Company in respect of its in-house share registration
D. R. Simpson Nil Nil and related activities, and the measures taken for
* Options granted for the period prior to appointment as Executive Director. effective exercise of voting rights by the Shareholders.
Inherent in the concept of trusteeship is the responsibility

to ensure equity, namely, that the rights of all shareholders,
large or small, are protected.

Composition IV. CSR AND SUSTAINABILITY COMMITTEE

The Securityholders Relationship Committee presently The role of the CSR Committee of the Board,
comprises four Directors. The Chairman of the under the nomenclature ‘CSR and Sustainability
Committee is an Independent Director. The Company Committee’, is inter alia, to review, monitor and
Secretary is the Secretary to the Committee. provide strategic direction to the Company’s CSR
The names of the members of the Securityholders and sustainability practices towards fulfilling its
Relationship Committee, including its Chairman, are triple bottom line objectives. The Committee seeks
provided under the section ‘Board of Directors and to guide the Company in crafting unique models to
Committees’ in the Report and Accounts. support creation of sustainable livelihoods together
with environmental re-generation. Formulation and
monitoring of the CSR Policy, the Sustainability
Details of Securityholders Relationship Committee Policies and the annual CSR Action Plan, including
Meetings during the financial year making recommendation to the Board as necessary,
During the financial year ended 31st March, 2023, form part of the role of the Committee.
nineteen meetings of the Securityholders Relationship
Committee were held, as follows: Composition
The CSR and Sustainability Committee presently
Sl. Date Committee No. of
No. Strength Members
comprises the Chairman of the Company and
present seven Non-Executive Directors, three of whom are
Independent Directors. The Chairman of the Company
1 21st April, 2022 4 4
is the Chairman of the Committee. The Company
2 9th June, 2022 4 3
Secretary is the Secretary to the Committee.
3 30th June, 2022 4 4
The names of the members of the CSR and
4 6th July, 2022 4 3
Sustainability Committee, including its Chairman, are
5 13th July, 2022 4 4 provided under the section ‘Board of Directors and
6 26th July, 2022 4 4 Committees’ in the Report and Accounts.
7 1st August, 2022 4 4
8 5th August, 2022 4 4
Details of CSR and Sustainability Committee
9 22nd August, 2022 4 3
Meetings during the financial year
10 14th September, 2022 4 4
11 20th September, 2022 4 4
three meetings of the CSR and Sustainability
12 18th October, 2022 4 4 Committee were held, as follows:
13 17th November, 2022 4 4
Sl. Date Committee No. of Members
14 19th December, 2022 4 4
No. Strength present
15 19th January, 2023 4 4
1 14th April, 2022 8 8
16 15th February, 2023 4 4
2 17th May, 2022 8 7
17 22nd February, 2023 4 4
3 19th October, 2022 8 8
18 28th February, 2023 4 4
19 20th March, 2023 4 4 Attendance at CSR and Sustainability Committee
Meetings during the financial year
Attendance at Securityholders Relationship
Committee Meetings during the financial year Member No. of Meetings attended
Member No. of Meetings attended S. Puri 3
P. R. Chittaranjan 1 N.A.
A. Nayak 19
M. Gupta 3
P. R. Chittaranjan 1 4
S. Panray 3
S. Dutta 2 13
N. Rao 3
B. Sumant 19
A. K. Seth 3
N. Doda 3 13
M. Shankar 3
R. Tandon 4 5
D. R. Simpson 3
1. Appointed as Member w.e.f. 3rd February, 2023.
2. Appointed as Member w.e.f. 22nd July, 2022. N. Doda 2 2
3. Ceased to be Member w.e.f. 20th January, 2023. 1. Appointed as Member w.e.f. 3rd February, 2023.
4. Ceased to be Member w.e.f. 22nd July, 2022. 2. Ceased to be Member w.e.f. 20th January, 2023.

V. INDEPENDENT DIRECTORS COMMITTEE RISK MANAGEMENT COMMITTEE

The statutory role of the Independent Directors The role of the Risk Management Committee is,
Committee of the Board is to review the performance inter alia, to approve the strategic risk management
of the non-Independent Directors including the framework of the Company, and review the risk
Chairman of the Company, and the Board, and also to mitigation strategies and results of risk identification,
assess the quality, quantity and timeliness of flow of prioritisation & mitigation plans for all business
information between the Company management and units / corporate functions, as also the measures taken
the Board. for cyber security. The Committee also formulates
the Risk Management Policy, and reviews the
Composition
implementation, effectiveness and adequacy of the
The Independent Directors Committee comprises risk management systems, processes & plans
all the Independent Directors of the Company. of the Company.
The names of the members of the Independent
Composition
Directors Committee are provided under the
section ‘Board of Directors and Committees’ in the The Risk Management Committee presently
Report and Accounts. comprises all the Executive Directors, one
Independent Director and one senior member of
Meetings and Attendance management. The Chairman of the Company is the
Details of Independent Directors Committee Chairman of the Committee. The Head of Internal Audit
Meeting during the financial year is an Invitee to the meetings of the Committee.
The Chief Risk Officer is the Secretary to the
Committee.
one meeting of the Independent Directors Committee
was held, as follows: The names of the members of the Risk Management
Committee, including its Chairman, are provided
Date Committee No. of Members
below.
Strength present
17th May, 2022 8 8 Meetings and Attendance
Attendance at Independent Directors Committee Details of Risk Management Committee Meetings
Meeting during the financial year during the financial year
Member Attendance at the Meeting During the financial year ended 31st March, 2023,
S. Banerjee Yes three meetings of the Risk Management Committee
were held, as follows:
H. Bhargava Yes
A. Duggal Yes Sl. Date Committee Strength No. of Members
No. (including Invitees) & Invitees
S. Mukherjee Yes
present
A. Nayak Yes
1 21st September, 2022 7 7
N. Rao Yes
A. K. Seth Yes 2 13th January, 2023 7 7
M. Shankar Yes 3 28th March, 2023 7 7
The CSR and Sustainability Committee provides strategic

direction to the Company’s CSR and Sustainability practices
towards fulfilling its Triple Bottom Line objectives.

Attendance at Risk Management Committee SUBSIDIARY COMPANIES

Meetings during the financial year All subsidiaries of the Company are managed by their
Member No. of Meetings attended respective Board of Directors in the best interest of
S. Puri (Chairman) 3 those companies and their shareholders. The annual
financial statements of the subsidiary companies are
N. Anand 3
reviewed by the Audit Committee of the Company.
A. Duggal 3 Performance review reports of the subsidiary
S. Dutta 1 3 companies are placed before the Board of Directors
B. Sumant 3 of the Company on a half-yearly basis. The Minutes
S. Sivakumar 3 of Board Meetings of the subsidiary companies,
including details of significant transactions &
Invitee No. of Meetings attended
arrangements entered into by them, are also placed
M. Ganesan 3 before the Board of Directors of the Company.
1. Appointed as Member w.e.f. 22nd July, 2022; earlier was an Invitee.
Note: Messrs. R. Tandon and S. K. Singh ceased to be Members of the Committee
The Company does not have any material subsidiary.
w.e.f. 22nd July, 2022 and 26th May, 2022, respectively. The Company’s Policy for determination of a
material subsidiary, as approved by the Board,
CORPORATE MANAGEMENT COMMITTEE
may be accessed on the Company’s corporate
The primary role of the CMC is strategic management website at https://www.itcportal.com/material-
of the Company’s businesses within Board approved subsidiary-policy .
direction / framework and realisation of Company
goals. The CMC, inter alia, formulates the Company’s FAMILIARISATION PROGRAMME FOR
business plans and organisational policies, systems DIRECTORS
& processes, reviews business performance against ITC believes that a Board, which is well
approved plans, allocates resources, and operates informed / familiarised with the Company and its
under the strategic supervision and control of the Board. affairs, can contribute significantly to effectively
discharge its role of trusteeship in a manner that fulfils
Composition
stakeholders’ aspirations and societal expectations.
The CMC presently comprises all the Executive In pursuit of this, the Directors of the Company are
Directors and four senior members of management. updated on material changes / developments in the
The Chairman of the Company is the Chairman domestic / global corporate and industry scenario
of the Committee. The composition of the CMC is including those pertaining to statutes / legislation &
determined by the Board on the recommendation of economic environment, and on matters significantly
the Nomination & Compensation Committee. affecting the Company, to enable them to take well
The Company Secretary is the Secretary to the CMC. informed and timely decisions. The Directors are also
The names of the members of the CMC, including its kept abreast on all business related matters including
Chairman, are provided under the section risk assessment & minimisation procedures,
‘Board of Directors and Committees’ in the Report CSR & sustainability interventions, and new initiatives
and Accounts. proposed by the Company. Visits to Company
facilities are also organised for the Directors from
Meetings time to time. During the year, the Directors attended
The CMC normally meets once a month. Minutes of a ‘Strategy Session’ where the Company’s overall
CMC Meetings are placed before the Board. strategy, including ITC Sustainability 2.0 vision and
Matters requiring the Board’s attention / approval, goals, were discussed / reviewed.
as emanating from the CMC Meetings, are placed in Further details may be accessed on the Company’s
the form of notes from the relevant Executive Director, corporate website at https://www.itcportal.com/directors-
backed by comprehensive background information. familiarisation-programme .

MEANS OF COMMUNICATION aspects of Management Discussion and Analysis

Timely disclosure of consistent, comparable, relevant as required under the Listing Regulations.
and reliable information on corporate financial Presentations to the investing community:
performance is at the core of good governance. Detailed presentations on the quarterly results
Towards this end, the Company has taken the for the investing community are sent to the
following initiatives: Stock Exchanges where the Company’s shares are
Website: The Company’s corporate website listed, and also made available on the Company’s
www.itcportal.com provides comprehensive corporate website.
information on ITC’s portfolio of businesses, Other disclosures / filings: A copy of the
CSR & sustainability initiatives, EHS performance, Chairman’s speech made at the Annual
shareholding pattern, key Company Policies, General Meeting of the Company is sent to all
and contact details of the Company’s employees the Shareholders and also made available on
responsible for assisting Investors and handling the Company’s corporate website. In addition,
investor grievances. The website has entire shareholding pattern, material events and other
sections dedicated to ITC’s profile, history and important information relating to the Company are
evolution, its core values, corporate governance submitted to the Stock Exchanges and also made
and leadership. An exclusive section on available on the Company’s corporate website.
‘Investor Relations’ serves to inform and service
Shareholders, enabling them to access information ITC CODE OF CONDUCT
at their convenience. The entire Report and The ITC Code of Conduct, as adopted by the Board,
Accounts as well as the quarterly, half-yearly and is applicable to the Directors, senior management and
annual financial results, along with the employees of the Company. The Code is derived from
Media Statements, presentations and FAQs on three interlinked fundamental principles viz., good
such results, are available in downloadable formats corporate governance, good corporate citizenship
under the said section as a measure of added
and exemplary personal conduct in relation to the
convenience for the Investors. The ‘Media Centre’
Company’s business and reputation. The Code
section includes all major media releases from the
covers ITC’s commitment to CSR and sustainable
Company and relevant media reports.
development, concern for occupational health, safety
Financial Results and Annual Report: The and environment, a gender friendly workplace,
quarterly, half-yearly and annual financial results, transparency and auditability, legal compliance,
along with the Media Statements and presentations avoidance of conflict of interest, and the philosophy of
on the Company’s financial performance, are sent leading by personal example. The Code is available
to the Shareholders of the Company. Extracts of on the Company’s corporate website.
these results were published, inter alia, in
‘The Times of India / Business Standard’ &
‘Aajkal / Ei Samay’ from Kolkata, and on an all India
Declaration as required under the Listing Regulations
basis in major newspapers and also in
‘Luxemburger Wort’, Luxembourg. Annual financial
results are also sent to the GDR holders at their All Directors and senior management of the Company
registered addresses. have affirmed compliance with the ITC Code of Conduct
Further, the Report and Accounts of the for the financial year ended 31st March, 2023.
Company, inter alia, including the Standalone and
Consolidated Financial Statements, the Report of S. Puri
the Board of Directors and the Auditors’ Reports, Chairman &
is sent to the Shareholders of the Company. Kolkata, 18th May, 2023. Managing Director
The Report of the Board of Directors includes all

WHISTLEBLOWER POLICY T
he Company has not raised any funds through
Synopsis of the Whistleblower Policy of the Company preferential allotment or qualified institutions
is provided in the ‘Report of the Board of Directors placement.
& Management Discussion and Analysis’, forming N
one of the Directors of the Company has been
part of the Report and Accounts. The Whistleblower
debarred or disqualified from being appointed or
Policy may be accessed on the Company’s corporate
continuing as a Director by the SEBI / Ministry of
website at https://www.itcportal.com/whistleblower-
Corporate Affairs / Statutory Authorities; this has
policy .
also been confirmed by the Company’s Secretarial
POLICY ON RELATED PARTY TRANSACTIONS Auditors, Messrs. S. N. Ananthasubramanian & Co.,
The Policy, as approved by the Board, may be Company Secretaries.
accessed on the Company’s corporate website at
D
etails of ‘loans and advances (being in the nature of
https://www.itcportal.com/rpt-policy .
loans) provided by the Company to firms / companies
ITC CODE OF CONDUCT FOR PREVENTION in which its Directors are interested’ are given in
OF INSIDER TRADING - 2019 the ‘Notes to the Financial Statements’, forming
The ITC Code of Conduct for Prevention of Insider part of the Report and Accounts.
Trading - 2019, as approved by the Board, inter alia, D
etails with respect to secretarial audit of
prohibits trading in the securities of the Company by
the Company, and confirmation by the Board
the Directors and employees while in possession of
with respect to the Independent Directors, are
unpublished price sensitive information in relation to
provided in the ‘Report of the Board of Directors
the Company.
& Management Discussion and Analysis’, forming
OTHER DISCLOSURES part of the Report and Accounts.
D
uring the last three years, there was neither any D
isclosures in relation to the Sexual Harassment of
instance of non-compliance by the Company nor
Women at Workplace (Prevention, Prohibition and
penalty / stricture imposed on the Company by the
Redressal) Act, 2013 are provided in the
Stock Exchanges / SEBI / Statutory Authorities on
‘Business Responsibility and Sustainability Report’,
any matter related to the capital markets.
forming part of the Report and Accounts.
T
here are no inter-se relationships between the
Directors and Key Managerial Personnel of the Information with respect to ‘Commodity Price Risk
Company. or Foreign Exchange Risk and Hedging Activities’
D
uring the year, the Company has not entered into is provided in the ‘Report of the Board of Directors
any materially significant related party transaction & Management Discussion and Analysis’ and in
which may have potential conflict with the interest the ‘Notes to the Financial Statements’, forming
of the Company at large. The details of related part of the Report and Accounts.
party transactions entered into by the Company
In view of the diversified business portfolio of the
during the year are provided in the ‘Notes to the
Company, its exposure in none of the individual
Financial Statements’, forming part of the Report
and Accounts. commodities which are sourced either for use
as inputs in its businesses or for agri-commodity
D
uring the year, the senior management of the
trading, is material in the context of its overall
Company did not enter into any material financial
and commercial transaction in which they had operations, and also in terms of the ‘Policy
personal interest that may have had potential for determination of materiality of events and
conflict with the interest of the Company at large. information for disclosure to the Stock Exchanges’,
D
uring the year, the Company was not required to as approved by the Board. Accordingly, the
obtain credit rating for any debt instrument, fixed disclosure requirements prescribed under the
deposit programme or any other scheme involving SEBI Circular dated 15th November, 2018 are not
mobilisation of funds. applicable for the Company.

T
he total fees paid during the year sent to the Shareholders and also posted on
by the Company and its subsidiaries to the Company’s corporate website; extracts of these
Messrs. S R B C & CO LLP, Statutory Auditors, results in the prescribed format are published
and all entities in the network firm / network in newspapers on an all India basis. Significant
entities which are part of the network of which events are also posted on the Company’s website
the Statutory Auditors are a member firm, under the ‘Media Centre’ section.
aggregate ` 8.57 Crores.
Audit Opinion: It has always been the Company’s
4.
M
r. R. K. Singhi, Executive Vice President &
endeavour to present Financial Statements
Company Secretary, is the Compliance Officer
with unmodified audit opinion, i.e. without any
under the Listing Regulations.
qualification. The Statutory Auditors have issued
DISCRETIONARY REQUIREMENTS UNDER an unmodified audit opinion on the Company’s
THE LISTING REGULATIONS Financial Statements for the year ended
The status of compliance with the discretionary 31st March, 2023.
requirements under the Listing Regulations is Internal Audit: The Head of Internal Audit reports
5.
provided below: to the Audit Committee of the Board.
Separate posts of Chairman and Managing
1.
Director: The Chairman of the Company is
GENERAL SHAREHOLDER INFORMATION
an Executive Chairman. The Company has a Provided in the ‘Shareholder Information’ section of
diversified business portfolio, which demands that the Report and Accounts.
the senior leadership has in-depth knowledge and
understanding of the functioning of the Company, CONFIRMATION OF COMPLIANCE
so as to enhance the value-generating capacity It is confirmed that the Company has complied with the
of the organisation and contribute significantly requirements prescribed under Regulations 17 to 27
to stakeholders’ aspirations and societal
and clauses (b) to (i) of sub-regulation (2) of
expectations. The Chief Executive is therefore
Regulation 46 of the Listing Regulations.
generally chosen from amongst the executive
The Statutory Auditors’ Certificate that the Company has
management of the Company.
complied with the conditions of Corporate Governance
Non-Executive Chairman’s Office: Not applicable.
2. is annexed to the ‘Report of the Board of Directors &
Shareholder Rights: The quarterly, half-yearly
3. Management Discussion and Analysis’, forming part
and annual financial results of the Company are of the Report and Accounts.
Notes:
1. Reference to Division / Divisional Business includes Strategic Business Unit (SBU), Business Vertical and Shared Services.
2. Reference to Divisional Management Committee includes SBU Management Committee, Shared Services Management Committee and Executive Committee for
Business Vertical.
3. Reference to Divisional Chief Executive includes Heads of SBU, Business Vertical and Shared Services.
The ITC Code of Conduct is derived from three interlinked

fundamental principles - good corporate governance,
good corporate citizenship and exemplary personal conduct.

ANNEXURE TO THE REPORT ON CORPORATE GOVERNANCE Ability to appreciate and critique the need for in-depth
specialisation across business critical areas such as
SKILLS, EXPERTISE AND COMPETENCIES OF DIRECTORS manufacturing, marketing, legal, information technology,
public advocacy etc., as well as the breadth of general
ITC believes that it is the collective effectiveness of the
management capabilities.
Board that impacts Company performance and therefore
members of the Board amongst themselves should have a 4. Stakeholder Value Creation
balance of skills, experience and diversity of perspectives Ability to understand processes for shareholder value
appropriate to the Company. creation and its contributory elements and critique
Given the Company’s size, scale and diversified nature of interventions towards value creation for the other
its businesses, the Directors should possess one or more stakeholders.
of the following skills, expertise and competencies: 5. Commercial Acumen
1. Organisational Purpose Commercial acumen to critique the Company’s financial
Ability to comprehend the socio-economic, political, performance and evaluate the Company’s strategies and
action plans in the context of their financial outcomes.
regulatory and competitive environment, both domestic
and global, in which the Company is operating and 6. Risk Management and Compliance
insight to identify opportunities and threats for the Ability to appreciate key risks impacting the Company’s
Company’s businesses. businesses and contribute towards development of
Ability to contribute towards creating an inspiring Vision systems and controls for risk mitigation & compliance
for the Company with superordinate societal goals and management and review and refine the same
appreciate the Company’s triple bottom line philosophy periodically.
of building synergy between serving the society and 7. Policy Evaluation
creating economic value for the Company.
Ability to comprehend the Company’s governance
2. Strategic Insight philosophy and contribute towards its refinement
Ability to evaluate competitive corporate and business periodically.
strategies and, based thereon, contribute towards Ability to evaluate policies, systems and processes in the
progressive refinement of the Company’s strategies context of the Company’s businesses, and review the
for fulfilment of its goals. same periodically.
Ability to comprehend strategy of organisation of a 8. Culture Building
diversified company like ITC, in the context of its Ability to contribute to the Board’s role towards
unique sources of competitive advantage and assess promoting an ethical organisational culture, eliminating
its strengths and weaknesses. conflict of interest, and setting & upholding the highest
3. Organisational Capacity Building standards of ethics, integrity and organisational conduct.
Acumen to evaluate organisational capacity and 9. Board Cohesion
readiness across relevant parameters and provide Ability to comprehend the statutory roles and
guidance on bridging gaps in capacity building. responsibilities of a Director and of the Board as a whole.
Ability to understand the talent market and the Ability to encourage and sustain a cohesive working
Company’s talent quotient so as to help finetune environment and to listen to multiple views and
strategies to attract, retain and nurture competitively thought processes and synergise a range of ideas for
superior talent. organisational benefit.
*******************

Shareholder Information
Details of Annual General Meeting (‘AGM’) as also on 31st March, 2023; the same position was
also reflected on SCORES, the web-based complaint
Date Friday, 11th August, 2023
redressal system of SEBI.
Venue The AGM will be held on The e-mail ID earmarked by the Company for investor
electronic platform complaints is [email protected] .
Time 10.30 a.m.

Shareholder Satisfaction Survey
Record Date Tuesday, 30th May, 2023 A Shareholder Satisfaction Survey was conducted by
the Company during the year with a view to assess
Dividend Payment Between Monday, 14th August, 2023
and further improve the performance standards of ISC.
Date and Thursday, 17th August, 2023
Over 49,000 Shareholders participated in the
Survey. Of the same, more than 94% were satisfied
Share Transfer Agent (in-house) with the services provided by ISC, with 80% of the
The Investor Service Centre of the Company (‘ISC’), Shareholders rating the services as excellent.
accredited with ISO 9001:2015 certification, is registered The feedback / suggestions provided by the Shareholders
with the Securities and Exchange Board of India (‘SEBI’) are being evaluated for appropriate action.
as Category II Share Transfer Agent for providing
in-house share registration and related services to the Share Transfer System
Shareholders and Investors. ISC continues to provide During the financial year, no share transfers were
best-in-class services to the Shareholders and Investors required to be effected by the Company.
of the Company, while ensuring compliance with the
applicable statutory requirements. Dematerialisation of Shares and Liquidity
The shares of the Company are traded in the
Mr. T. K. Ghosal, Deputy Secretary and Head of ISC,
is the Compliance Officer under the SEBI (Registrars to dematerialised form under both the Depository Systems
an Issue and Share Transfer Agents) Regulations, 1993. in India - NSDL and CDSL. The International Securities
Identification Number (‘ISIN’) allotted to the Company’s
Shareholder / Investor complaints
shares under the Depository System is INE154A01025.
The Company attends to Shareholder / Investor
During the financial year, 43,98,12,853 shares of the
complaints within three working days, except where
constrained by disputes or legal impediments. Company, covered in 1,830 requests and constituting
3.54% of the Issued and Subscribed Share Capital of the
During the financial year, one complaint relating to
Company, were dematerialised. The processing activities
dividend was received and promptly resolved,
with respect to requests received for dematerialisation
in terms of the Complaint Identification Policy of the
were generally completed within five working days.
Company approved by the Securityholders Relationship
Committee. There was no investor complaint pending The Company’s shares are amongst the most liquid and
either at the beginning or at the end of the year. actively traded shares on the Indian Stock Exchanges
National Stock Exchange of India Limited, BSE Limited and consistently rank among the top frequently traded
and The Calcutta Stock Exchange Limited have shares. The Company’s market capitalisation stood
confirmed that there were no investor complaints at ` 4,76,614 Crores (US$ 58.00 Billion) as on
pending against the Company at the end of each quarter 31st March, 2023.

Distribution of Shareholding as on 31st March, 2023

No. of Shares No. of Shareholders No. of Shares
Slab
Physical Demat Total % Physical Demat Total %
1 – 5000 19,052 28,60,021 28,79,073 98.24 1,36,45,672 52,10,53,685 53,46,99,357 4.30
5001 – 10000 1,398 21,398 22,796 0.78 1,04,21,744 15,64,61,630 16,68,83,374 1.34
10001 – 20000 853 12,672 13,525 0.46 1,15,03,627 17,91,40,252 19,06,43,879 1.54
20001 – 30000 367 5,127 5,494 0.19 90,46,809 12,67,04,169 13,57,50,978 1.09
30001 – 40000 119 2,274 2,393 0.08 40,48,620 7,89,15,619 8,29,64,239 0.67
40001 – 50000 90 1,612 1,702 0.06 40,21,045 7,28,33,833 7,68,54,878 0.62
50001 – 100000 140 2,766 2,906 0.10 98,54,065 19,43,41,726 20,41,95,791 1.64
100001 and above 64 2,574 2,638 0.09 1,21,95,29,705 9,81,64,95,540 11,03,60,25,245 88.80
Total 22,083 29,08,444 29,30,527 100.00 1,28,20,71,287 11,14,59,46,454 12,42,80,17,741 100.00
Categories of Shareholders as on 31st March, 2023
0.83%
1.00% 0.06%
Financial Institutions, Insurance Companies,
Mutual Funds, Banks and Others - 5,22,58,43,235 shares
(42.05%)
12.73% Foreign Companies - 3,61,98,91,567 shares (29.13%)
Foreign Portfolio Investors - 1,76,42,54,790 shares

(14.20%)
14.20%
42.05%
Public and Others - 1,58,27,58,202 shares (12.73%)
Bodies Corporate - 12,46,00,518 shares (1.00%)
NRIs and Foreign Nationals - 10,35,21,690 shares

29.13% (0.83%)
Shares underlying Global Depository Receipts -

71,47,739 shares (0.06%)
Global Depository Receipts

Pursuant to the offer of Global Depository Receipts (‘GDRs’) made in 1993 by the Company, 71,47,739 GDRs,
representing 71,47,739 underlying shares i.e. 0.06% of the Issued and Subscribed Share Capital of the Company,
were outstanding as on 31st March, 2023.
The Company’s GDRs are listed on the Luxembourg Stock Exchange (Code: 004660919), 35A Boulevard Joseph II,
L-1840, Luxembourg. The Listing Fee for the calendar year 2023 has been paid to the Luxembourg Stock Exchange (‘LSE’).

Listing of Shares on Stock Exchanges with Stock Code

Stock Exchange Stock Code
National Stock Exchange of India Limited (‘NSE’) ITC
Exchange Plaza, Plot No. C-1, Block G
Bandra Kurla Complex, Bandra (E)
Mumbai 400 051
Telephone nos. : 022-2659 8100 / 14
Facsimile no. : 022-2659 8120
Website : www.nseindia.com
BSE Limited (‘BSE’) 500875
Phiroze Jeejeebhoy Towers, Dalal Street
Mumbai 400 001
Telephone nos. : 022-2272 1233 / 34
Facsimile no. : 022-2272 1919
Website : www.bseindia.com
The Calcutta Stock Exchange Limited (‘CSE’) 10000018
7, Lyons Range
Kolkata 700 001
Telephone no. : 033-4025 3000
Facsimile no. : 033-4025 3030
Website : www.cse-india.com
Stock Exchange Reuters Code Bloomberg

NSE ITC.NS ITC IS
BSE ITC.BO ITC IB
The Listing Fees for the financial year 2023-24 have been paid to NSE, BSE and CSE.
Monthly High and Low Quotes and Volume of Shares traded on NSE & BSE and GDRs on LSE
NSE BSE LSE
Year & Month High Low Volume High Low Volume High Low Volume
in 000’s in 000’s in 000’s
(`) (`) (Nos.) (`) (`) (Nos.) (US$) (US$) (Nos.)
2022 APRIL 273.15 248.80 4,43,042 273.10 248.80 23,322 N.A. N.A. Nil
MAY 282.35 249.15 4,62,384 282.30 249.20 20,663 N.A. N.A. Nil
JUNE 275.80 258.55 2,63,357 275.70 258.05 11,549 N.A. N.A. Nil
JULY 305.90 271.20 3,16,761 305.90 271.30 14,837 N.A. N.A. Nil
AUGUST 321.40 303.10 2,45,937 321.40 303.15 15,715 N.A. N.A. Nil
SEPTEMBER 349.55 316.00 3,13,634 349.50 316.00 15,045 N.A. N.A. Nil
OCTOBER 353.20 323.25 2,50,510 354.00 323.25 15,880 4.24 3.96 …
NOVEMBER 361.45 334.40 2,56,225 361.90 334.35 10,236 N.A. N.A. Nil
DECEMBER 347.35 325.35 1,91,176 347.25 325.35 6,702 N.A. N.A. Nil
2023 JANUARY 355.00 326.00 2,18,461 354.65 325.85 7,656 N.A. N.A. Nil
FEBRUARY 394.00 329.10 3,71,513 394.00 329.00 13,513 N.A. N.A. Nil
MARCH 393.60 369.65 2,47,223 393.40 369.70 8,364 N.A. N.A. Nil
There was no trading in the Company’s shares on CSE during the financial year 2022-23.

ITC Share Price vis-à-vis Nifty 50
450 20000
400 19000
ITC Share Price (`)
350 18000
Nifty 50
300 17000
250 16000
200 15000
Apr-22
May-22
Jun-22
Jul-22
Aug-22
Sep-22
Oct-22
Nov-22
Dec-22
Jan-23
Feb-23
Mar-23
ITC Share Price Nifty 50
Note: Indicates monthly closing positions.
ITC Share Price and Volume traded on NSE
450 525000
400 450000
Volume Traded (’000 Shares)

ITC Share Price (`)
350 375000
300 300000
250 225000
200 150000
Apr-22
May-22
Jun-22
Jul-22
Aug-22
Sep-22
Oct-22
Nov-22
Dec-22
Jan-23
Feb-23
Mar-23
Highest Price Lowest Price Volume Traded
Note: Indicates monthly high & low share price and volume.

Dividend
As one of India’s foremost private sector companies, the Company has performed consistently for over a century and has
rewarded Shareholders since inception with uninterrupted dividends. Details of dividend for the last 10 financial years are
provided below:
Financial Year Dividend per Dividend Dividend Total Dividend

Share (` in Crores) Distribution Tax including Dividend
(including (` in Crores) Distribution Tax,
Interim Dividend) where applicable
(`) (` in Crores)
2022-23 15.50 * 19,255.02 N.A. 19,255.02
2021-22 11.50 14,171.55 N.A. 14,171.55
2020-21 10.75 13,230.31 N.A. 13,230.31
2019-20 10.15 12,476.63 N.A. 12,476.63
2018-19 5.75 7,048.71 1,448.88 8,497.59
2017-18 5.15 6,285.21 1,291.94 7,577.15
2016-17 #
4.75 5,770.01 1,174.64 6,944.65
2015-16 8.50 ^ 6,840.13 1,392.48 8,232.61
2014-15 6.25 5,009.71 1,019.86 6,029.57
2013-14 6.00 4,771.91 810.99 5,582.90
* Includes (i) Final Dividend of ` 6.75 per share (aggregating ` 8,388.91 Crores) and (ii) Special Dividend of ` 2.75 per share (aggregating
` 3,417.70 Crores), which are subject to the approval of the Shareholders, and (iii) Interim Dividend of ` 6.00 per share (aggregating ` 7,448.41 Crores)
declared by the Board of Directors of the Company on 3rd February, 2023.
# On expanded Share Capital arising out of Bonus Shares issued in the ratio of 1:2.
^ Includes Special Dividend of ` 2.00 per share.
Financial Calendar
Financial Year 2023-24
(1st April - 31st March)
1 First Quarter Results July / August 2023
2 Second Quarter and Half-Year Results October / November 2023
3 Third Quarter Results January / February 2024
4 Fourth Quarter and Annual Results May 2024
Particulars of past three AGMs
AGM Financial Year Venue Date Time Special Resolution passed
111th 2021-22 20/07/2022 –
110th 2020-21 The AGM was held 11/08/2021 –

on electronic 10.30 a.m.
platform Re-appointment of Ms. N. Rao as
109th 2019-20 04/09/2020 Independent Director with effect from
8th April, 2021.

Postal Ballot through E-voting

During the financial year, the following Ordinary Resolutions were passed by the Shareholders by requisite majority
by way of postal ballot through e-voting. The Board of Directors of the Company appointed Mr. R. L. Auddy,
Senior Solicitor and Partner, Messrs. Sandersons & Morgans, Advocates & Solicitors, as the Scrutinizer for scrutinizing
the postal ballot through e-voting. Brief details pertaining to the said postal ballot are provided below:
Re-appointment of Entering into related party Appointment of

Mr. Nakul Anand as a transactions with British Mr. Peter Rajatilakan
Wholetime Director American Tobacco (GLP) Chittaranjan as a
Limited, United Kingdom, Non-Executive Director
during the financial year
2023-24
(Resolution No. 1) (Resolution No. 2) (Resolution No. 3)
Date of Postal Ballot Notice 20th October, 2022 3rd February, 2023
Date of completion of despatch of
15th November, 2022 13th February, 2023
Postal Ballot Notice
16th November, 2022 to 14th February, 2023 to
Period of e-voting
15th December, 2022 15th March, 2023
Date of declaration of results 16th December, 2022 16th March, 2023
The results of the postal ballot through e-voting were as follows:
Votes in favour of the Resolution Votes against the Resolution

Resolution Number of Shares % of votes to total Number of Shares % of votes to total
for which valid number of valid for which valid number of valid
votes cast votes cast votes cast votes cast
Resolution No. 1 919,78,42,928 90.12 100,82,00,893 9.88
Resolution No. 2 657,51,04,259 99.99 3,58,305 0.01
Resolution No. 3 940,90,13,174 92.23 79,25,52,070 7.77
No special resolution is proposed to be passed by postal ballot.
Plant Locations
Saharanpur
CIGARETTE FACTORIES SPICES PROCESSING PLANT
5. Sardar Patel Marg
Saharanpur Guntur
Bengaluru
Uttar Pradesh 247 001 Plot Nos. 1, 2 & 2A, Spices Park
1. Meenakunte Village
Mydavolu Village, Edlapadu Mandal
Jala Hobli
District Guntur
Bengaluru North Taluk GREEN LEAF THRESHING PLANTS Andhra Pradesh 522 233
Karnataka 562 157
Anaparti
Kolkata PACKAGING & PRINTING FACTORIES
1. Anaparti
2. 93/1, Karl Marx Sarani District East Godavari Chennai
Kolkata Andhra Pradesh 533 342 1. Tiruvottiyur
West Bengal 700 043 Chennai
Chirala Tamil Nadu 600 019
Munger 2. Chirala
3. Basdeopur P.O. Haridwar
District Bapatla
District Munger 2. Plot No. 1, Sector - 11
Andhra Pradesh 523 157
Bihar 811 202 Integrated Industrial Estate
Nanjangud Haridwar
Pune 3. Thandya Industrial Area Uttarakhand 249 403
4. Plot No. B - 27, MIDC Immavu & Adakanahalli Villages Munger
Ranjangaon, Taluka Shirur Nanjangud Taluk 3. Basdeopur P.O.
District Pune District Mysuru District Munger
Maharashtra 412 220 Karnataka 571 302 Bihar 811 202

Nadiad Nanjangud 5. ITC Windsor

4. Memdabad - Nadiad Road 11. Survey No. 77/3 25, Windsor Square
Village Silod, Taluka Nadiad Thandya Industrial Area Golf Course Road, Bengaluru
District Kheda Immavu & Adakanahalli Villages Karnataka 560 052
Gujarat 387 320 Nanjangud Taluk, District Mysuru
6. Welcomhotel Bengaluru
Karnataka 571 302
46, Richmond Road, Bengaluru
PAPER & PAPERBOARD MILLS Panchla Karnataka 560 025
Bollaram 12. Mouza Kulai, J. L. No. 26 Bhubaneswar
1. Anrich Industrial Estate P.S. Panchla, District Howrah 7. Welcomhotel Bhubaneswar
Bollaram Municipality, Jinnaram Mandal West Bengal 711 322 D/1, Mz. Dumuduma, District Khordha
District Sangareddy Pudukkottai Bhubaneswar
Telangana 502 325 13. Vadugapatti & Velur Villages Odisha 751 019
Sarapaka Taluk Illupur, District Pudukkottai Chennai
2. Sarapaka Village Tamil Nadu 621 316 8. ITC Grand Chola
Burgampahad Mandal Pune 63, Mount Road, Guindy
District Bhadradri Kothagudem 14. Plot No. D - 1, MIDC Chennai
Telangana 507 128 Ranjangaon, Taluka Shirur Tamil Nadu 600 032
Thekkampatty District Pune 9. Welcomhotel Chennai
3. Thekkampatty Village Maharashtra 412 220 Cathedral Road, Chennai
Vivekanandapuram Post Reengus Tamil Nadu 600 086
Mettupalayam Taluk 15. F-122 & F-126 Coimbatore
District Coimbatore Shree Khatu Shyam Industrial Area 10. Welcomhotel Coimbatore
Tamil Nadu 641 113 Reengus, District Sikar 1266/14, West Club Road
Tribeni Rajasthan 332 404 Race Course Area
4. Village & Post Chandrahati Coimbatore
Sankrail
District Hooghly Tamil Nadu 641 018
16. F-21, Sudharas Food Park
West Bengal 712 504 Kandua Gram Panchayat Goa
P.S. Sankrail, Howrah 11. ITC Grand Goa Resort & Spa
FOODS FACTORIES West Bengal 711 302 Arossim Beach Road, Cansaulim
Goa 403 712
Agra Uluberia
1. 13.2 Km. Stone, Shamshabad Road 17. Mouza Amraberia, J. L. No. 8 Guntur
Village Naufri P.S. Uluberia, District Howrah 12. Welcomhotel Guntur
Post Shyamo, Agra West Bengal 711 303 4-5-10 Vidyanagar Ring Road, Guntur
Uttar Pradesh 283 125 Andhra Pradesh 522 007
Bikaner PERSONAL CARE PRODUCTS FACTORIES Hyderabad
2. Plot No. F-16 13. ITC Kohenur
Haridwar
Bichhawal Industrial Area Plot No. 5, Hyderabad Knowledge City
1. Plot No. 1, Sector - 11
Phase II, Bikaner Madhapur, Hyderabad
Integrated Industrial Estate, Haridwar
Rajasthan 334 006 Telangana 500 081
Uttarakhand 249 403
Haridwar Jaipur
Kamrup 14. ITC Rajputana
3. Plot No. 1, Sector - 11 2. NH - 37, Bortejpur
Integrated Industrial Estate Palace Road, Jaipur
Mouza Rampur Rajasthan 302 006
Haridwar Kukurmara, District Kamrup
Uttarakhand 249 403 Assam 781 134 Kolkata
15. ITC Sonar
Jaitpura Manpura 1, JBS Haldane Avenue
4. Plot Nos. F-170-171 & G-172-173 3. Village Manpura Kolkata
Jaitpura Industrial Area, Jaipur Tehsil Baddi, District Solan West Bengal 700 046
Rajasthan 303 704 Himachal Pradesh 174 101
16. ITC Royal Bengal
Kamrup 1, JBS Haldane Avenue
5. NH - 37, Bortejpur PLANT UNDER CONSTRUCTION Kolkata
Mouza Rampur West Bengal 700 046
Kukurmara, District Kamrup Uluberia
Assam 781 134 Personal Care Products Factory Mumbai
Mouza Malanchaberia, J. L. No. 56 17. ITC Maratha
Kapurthala P.S. Uluberia, District Howrah Sahar, Mumbai
6. Plot Nos. A-1-A & A-1-B West Bengal 711 316 Maharashtra 400 099
Integrated Mixed Use Industrial Park
Village Jhalthikriwal 18. ITC Grand Central
HOTELS
District Kapurthala 287, Dr. B. Ambedkar Road
Punjab 144 601 Owned Hotels Parel, Mumbai
Maharashtra 400 012
Khordha Agra
7. IDCO Plot No. 4 1. ITC Mughal New Delhi
Kholadwara Industrial Area Taj Ganj 19. ITC Maurya
District Khordha Agra Sardar Patel Marg
Odisha 752 050 Uttar Pradesh 282 001 Diplomatic Enclave
New Delhi 110 021
Malur Ahmedabad
8. Survey Nos. 15/1 & 15/2 2. ITC Narmada 20. Sheraton New Delhi
Madivala Gram Panchayat Judges Bungalow Road District Centre, Saket
Village Yeshwanthpura, District Kolar Vastrapur, Ahmedabad New Delhi 110 017
Karnataka 563 130 Gujarat 380 015 Licenced Hotels
Medak Amritsar Ahmedabad
9. 395-412, 416, 417, 447, 449-451 3. Welcomhotel Amritsar 21. Fortune Park, Ahmedabad
Next to TSTransco Sub-station Raja Sansi, Ajnala Road Ellis Bridge, Ahmedabad
Manoharabad, Medak Amritsar Gujarat 380 006
Telangana 502 336 Punjab 143 101
Gurugram
Munger Bengaluru 22. ITC Grand Bharat
10. Sitakund Industrial Area 4. ITC Gardenia P.O. Hasanpur, Tauru
Village Nandlalpur, District Munger 1, Residency Road, Bengaluru District Mewat, Gurugram
Bihar 811 202 Karnataka 560 025 Haryana 122 105

Port Blair New Delhi Itarsi

23. Welcomhotel Bay Island 39. Welcomhotel Dwarka 11. Survey Nos. 309/1, 310/2 & 310/3
Marine Hill, Port Blair Plot No. 3, Sector - 10 Patwari Halka No. 11, Village Raisalpur
Andaman & Nicobar Islands 744 101 District Centre, Dwarka Tehsil Itarsi, District Hoshangabad
New Delhi 110 075 Madhya Pradesh 461 111
Vadodara
24. Welcomhotel Vadodara Pahalgam Jagdishpur
R. C. Dutt Road, Alkapuri 40. Welcomhotel Pine-n-Peak 12. Khasra Nos. 2377-2380
Vadodara Aru Road, Near Amusement Park Village Kathura, Pargana Jagdishpur
Gujarat 390 007 Pahalgam Tehsil Musafirkhana, District Amethi
Jammu & Kashmir 192 126 Uttar Pradesh 227 817
Hotels under Operating Services
Panchkula
Ahmedabad Mandsaur
41. Welcomhotel Bella Vista
25. Welcomhotel Ahmedabad 13. Survey Nos. 30-33
SM - 8, City Center
15 Ashram Road, Dandi Kuch Circle Patwari Halka No. 14, Village Azizkhedi
Sector - 5, Panchkula
Ahmedabad Tehsil & District Mandsaur
Haryana 134 109
Gujarat 380 013 Madhya Pradesh 458 001
Udaipur
Aurangabad Mhow
42. Mementos Ekaya
26. Welcomhotel Rama International 14. Survey Nos. 188/2, 189/1, 189/2, 189/4,
Raya, Near Eklingji Temple
R - 3, Chikalthana, Jalna Road 190/1,191 & 192/2
Udaipur
Aurangabad Patwari Halka No. 20
Rajasthan 313 324
Maharashtra 431 003 Village Gawli Palasia, Vikaskhand Mhow
Visakhapatnam Tehsil Mhow, District Indore
Chail
43. Welcomhotel Devee Grand Bay Madhya Pradesh 453 441
27. Welcomhotel Chail
Beach Road, Visakhapatnam
Tavleen Chail, Bhalawag Forest
Andhra Pradesh 530 002 Nagda
Kandaghat-Chail-Kufri Road
15. Khasra Nos. 1393 (Part), 1394 (Part),
Near Janedghat, Shimla
CHOUPAL SAAGARS – 1396/1 & 1397/1
Himachal Pradesh 173 217
RURAL SERVICES CENTRES Patwari Halka No. 18, Village Padliya Kala
Chennai Tehsil Nagda, District Ujjain
28. Welcomhotel GST Road Chennai Amravati
Madhya Pradesh 456 335
1, GST Road, SP Koil 1. Patwari Halka No. 48
Maraimalai Nagar Mouza Devlgaon, Pargane Nandgaon Peth Parbhani
Tamil Nadu 603 204 Taluka & District Amravati 16. Gate No. 803
Maharashtra 444 602 Near Water Filter Plant, Village Assola
Dharamshala Vasmat Road, Taluka & District Parbhani
29. Storii Amoha Retreat Badaun
2. Arazi Nos. 10 & 12/3 (Part) Maharashtra 431 401
Village Diktu, P.O. Jheol
District Kangra, Tehsil Dharamshala Village Khunak, Tehsil & District Badaun Pilibhit
Himachal Pradesh 176 001 Uttar Pradesh 243 601 17. Khasra No. 261
Goa Bahraich Village Sandiya Mustakil
30. Storii Shanti Morada 3. Khasra Nos. 475-476, 477 (Part), Tehsil, Pargana & District Pilibhit
8/123, Bairo Alto Vaddo 496-kha (Part), 497, 498 (Part), Uttar Pradesh 262 001
Saligao, North Goa 500-Mi, 501-505, 507 & 509
Village Mohammad Nagar Ratlam
Goa 403 511 18. Survey Nos. 107/1-107/3
Tehsil, Pargana & District Bahraich
Hyderabad Uttar Pradesh 271 801 R. I. Circle No. 5, Moondri
31. ITC Kakatiya Patwari Halka No. 31
6-3-1187, Begumpet Chandouli Village Kharakhedi, Tehsil & District Ratlam
Hyderabad 4. Khasra Nos. 57-62 & 641 Madhya Pradesh 457 001
Telangana 500 016 Village Muhabatpur, Ganj Khwaja
Pargana Dhoos, Tehsil Mughal Sarai Sehore
Jim Corbett District Chandouli 19. Khasra Nos. 208-209
32. Welcomhotel Jim Corbett Uttar Pradesh 232 104 Patwari Halka No. 36
Village Kyari, Tehsil Salt Village Rafiqganj
Chindwara
Ramnagar Betalghat Road, District Almora Tehsil & District Sehore
5. Survey Nos. 16/1-16/2 & 16/4-16/7
Uttarakhand 263 646 Madhya Pradesh 466 001
Settlement No. 7
Jodhpur Patwari Halka No. 34, R. I. Circle Ujjain
33. Welcomhotel Jodhpur Village Imaliya Bohata, Chindwara - I 20. Survey Nos. 433/3, 456 & 458
Khasra No. 53 Tehsil & District Chindwara R. I. Circle No. 2, Patwari Halka No. 19
Uchiyarda Village, Jodhpur Madhya Pradesh 480 001 Village Kamed
Rajasthan 342 027 Tehsil Ghattia, District Ujjain
Dewas
Katra 6. Survey Nos. 294/2 & 295 Madhya Pradesh 456 001
34. Welcomhotel Katra Patwari Halka No. 26
Vidisha
9 Shrine View, SMVD Chowk Village Lohar Pipliya
21. New Revenue Survey Nos. 18 & 18/2
Katra, Reasi Tehsil & District Dewas
Patwari Halka Nos. 35 & 45
Jammu & Kashmir 182 301 Madhya Pradesh 455 001
Village Bais
Khimsar Dhar Tehsil & District Vidisha
35. Welcomhotel Khimsar Fort & Dunes 7. Survey No. 438, Patwari Halka No. 13 Madhya Pradesh 464 001
P.O. Khimsar, District Nagaur Village Jaitpura, Tehsil & District Dhar
Rajasthan 341 025 Madhya Pradesh 454 001 Wardha
22. Survey Nos. 151/1 & 151/4
Mamallapuram Gonda Wardha - Hinghaghat Road, Inzapur
36. Welcomhotel Kences Palm Beach 8. Arazi Nos. 420 (Part), 421-424, 427-428, Taluka & District Wardha
No. 53, Devaneri Village, East Coast Road 431, 433-434, 442-446, 447 (Part), Maharashtra 442 001
District Kanchipuram, Mamallapuram 448 (Part), 450-456, 456 (kha) & 457 (Part)
Tamil Nadu 603 104 Village Haripur, Tehsil & District Gonda Washim
Uttar Pradesh 271 001 23. Survey No. 104
Mashobra
Hardoi Patwari Halka No. 10
37. Welcomhotel Shimla
9. Arazi Nos. 658 & 659 Mouza Zakalwadi
Village Patengali (Tarapur)
Village Korriyan, Pargana Gopamau Taluka & District Washim
P.O. Mashobra, Shimla
Tehsil & District Hardoi Maharashtra 444 505
Himachal Pradesh 171 007
Uttar Pradesh 241 001 Yavatmal
Mussoorie
38. Welcomhotel The Savoy Hathras 24. Bhumapan # 15/2A
Library Bazar, Gandhi Chowk 10. Khasra No. 21, Village Srinagar Village Parwa, Pandharkoda Road
P.O. Savoy, Mussoorie Tehsil Sasni, District Hathras Taluka & District Yavatmal
Uttarakhand 248 179 Uttar Pradesh 204 216 Maharashtra 445 001

Shareholder Referencer
Service of Documents
In conformity with the regulatory requirements, the Notice of the 112th Annual General Meeting of the Company and the
Report and Accounts 2023 are being sent only through electronic mode to those Shareholders who have registered their
e-mail addresses with the Company or with the Depositories.The Company will also provide physical copies of the
said Notice and the Report and Accounts 2023 to the Shareholders upon request.
Shareholders who wish to register their e-mail addresses with the Company are requested to register the same at
https://eform.itcportal.com . Alternatively, Shareholders may send a letter requesting for registration of their
e-mail addresses, mentioning their name and DP ID & Client ID / folio number, through e-mail at [email protected] or
by post to the Investor Service Centre of the Company (‘ISC’) at 37 Jawaharlal Nehru Road, Kolkata 700 071.
KYC details of Shareholders holding shares in the certificate form
Shareholders holding shares in the certificate form are required to mandatorily furnish their Permanent Account Number (‘PAN’),
specimen signature, and details of their bank account, nomination, complete postal address including pin code, and
mobile number to the Company.
Shareholders who are yet to provide any of the aforesaid information to the Company or who would like to advise any
change in such information may use the prescribed forms for this purpose, which may be accessed on the Company’s
corporate website at https://www.itcportal.com/mandatory-furnishing , or can be furnished by ISC on request.
Shareholders are also required to link their PAN with the Aadhaar Number by 30th June, 2023, unless extended further by
the Income-tax authorities.
In the absence of the aforesaid information / action, the folio of the concerned Shareholders will be frozen by the Company,
in conformity with the regulatory requirements, with effect from 1st October, 2023; any service request from such
Shareholders such as sub-division / consolidation / renewal of share certificates, issue of duplicate share certificates, change
of address or bank particulars etc., will also not be processed.
Dividend
The Company provides the facility for remittance of dividend to Shareholders through RTGS (‘Real Time Gross Settlement’) /
NACH (‘National Automated Clearing House’) / NEFT (‘National Electronic Funds Transfer’).
Shareholders who have not opted for remittance of dividend through electronic mode and wish to avail the same, are
required to provide their bank details, including IFSC (‘Indian Financial System Code’) and MICR (‘Magnetic Ink Character
Recognition’), to their respective Depository Participants (‘DPs’), in case shares are held in the dematerialised form, or to the
ISC, where shares are held in the certificate form. Shareholders holding shares in the certificate form may use the prescribed
form for this purpose, which may be accessed on the Company’s corporate website at https://www.itcportal.com/form ,
or can be furnished by ISC on request.
Pursuant to the Income-tax Act, 1961, dividend income is taxable in the hands of the Shareholders and the Company is
required to deduct tax at source from such dividend at the prescribed rates. A communication providing detailed
information & instructions with respect to tax on the Final Dividend, including the Special Dividend, for the financial year
ended 31st March, 2023 is being sent separately to the Shareholders.
Transfer of unclaimed dividend and shares to the Investor Education and Protection Fund
During the financial year 2022-23, unclaimed dividend for the financial year 2014-15 aggregating ` 17,07,03,748/- and
6,87,806 shares in respect of which dividend entitlements remained unclaimed for seven consecutive years, were transferred
by the Company to the Investor Education and Protection Fund established by the Central Government (‘IEPF’), pursuant
to the provisions of Section 124 of the Companies Act, 2013 read with the Investor Education and Protection Fund Authority
(Accounting, Audit, Transfer and Refund) Rules, 2016.
Shareholders may claim their unclaimed dividend for the years prior to and including the financial year 2014-15 and the
shares from the IEPF Authority by applying in the prescribed Form No. IEPF-5. This Form can be accessed on the website
of the IEPF Authority at https://www.iepf.gov.in/IEPF/corporates.html .
The due dates for transfer of unclaimed dividend and the shares to the IEPF for the subsequent financial years are given in
the table below. Attention in particular is drawn that the unclaimed dividend for the financial year 2015-16 and the shares
in respect of which dividend entitlements remain unclaimed for seven consecutive years will be due for transfer to the IEPF
on 27th August, 2023, for which purpose communication has been sent to the concerned Shareholders advising them
to write to ISC to claim their dividend. Notices in this regard have also been published in the newspapers. Details of
such unclaimed dividend and shares are available on the Company’s corporate website at http://info-dividend-
shares.itcportal.com/popup_new.aspx and http://info-dividend-shares.itcportal.com/popupiepf.aspx , respectively.

Shareholder Referencer
Transfer of unclaimed dividend and shares to the Investor Education and Protection Fund (Contd.)
Financial Dividend Date of Total Dividend Unclaimed Dividend Due date for
Year Identification declaration (`) as on 31/03/2023 transfer of dividend and
No. of Dividend (`) % shares to IEPF
2015-16 86th 22nd July, 2016 68,40,13,10,170 27,14,71,349 0.40 27th August, 2023 *
2016-17 87th 28th July, 2017 57,70,01,46,310 25,12,50,695 0.44 2nd September, 2024
2017-18 88th 27th July, 2018 62,85,22,11,487 25,27,53,155 0.40 27th August, 2025
2018-19 89th 12th July, 2019 70,48,72,63,716 22,17,26,812 0.31 12th August, 2026
2019-20 90th 4th September, 2020 1,24,76,63,21,288 34,30,71,677 0.27 5th October, 2027
Interim Dividend 11th February, 2021 61,52,68,08,755 18,16,83,782 0.30 15th March, 2028
2020-21 91st 11th August, 2021 70,77,62,73,691 20,77,85,358 0.29 13th September, 2028
(Final Dividend)
Interim Dividend 3rd February, 2022 64,69,47,59,808 19,82,94,390 0.31 7th March, 2029
2021-22 92nd 20th July, 2022 77,02,07,16,603 23,48,88,827 0.30 22nd August, 2029
(Final Dividend)
2022-23 Interim Dividend 3rd February, 2023 74,48,40,89,766 20,14,95,564 0.27 8th March, 2030
* ISC will not be able to entertain any claim received after 25th August, 2023.
Unclaimed Shares
The status of unclaimed shares of the Company transferred to the demat account, ‘ITC Limited - Unclaimed Suspense Account’,
in accordance with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, is as follows:
Particulars No. of No. of
Shareholders Shares
Aggregate number of Shareholders and outstanding shares held in the Unclaimed Suspense Account as 6,606 63,46,185
on 1st April, 2022
Number of Shareholders who approached the Company during the year for transfer of shares from the 118 3,99,790
Unclaimed Suspense Account
Number of Shareholders to whom shares were transferred from the Unclaimed Suspense Account upon 112 3,78,661
receipt and verification of necessary documents
Number of shares in respect of which dividend entitlements remained unclaimed for seven consecutive 24 20,010
years and transferred from the Unclaimed Suspense Account to the IEPF
Aggregate number of Shareholders and outstanding shares held in the Unclaimed Suspense Account as 6,494 59,47,514 *
on 31st March, 2023
* Voting rights in respect of these shares will remain frozen till the time such shares are transferred from the Unclaimed Suspense Account to the
concerned Shareholders.
Depository Services
Shareholders may write to the respective Depository / DPs or to ISC for guidance on depository services. The contact details
of the Depositories are given below:
National Securities Depository Limited Central Depository Services (India) Limited
Trade World, ‘A’ Wing, 4th Floor Marathon Futurex, ‘A’ Wing, 25th Floor
Kamala Mills Compound Mafatlal Mills Compound
Senapati Bapat Marg, Lower Parel N. M. Joshi Marg, Lower Parel
Mumbai 400 013 Mumbai 400 013
Telephone no. : 022-2499 4200 Telephone no. : 022-2302 3333
Facsimile no. : 022-2497 6351 Facsimile no. : 022-2300 2035
e-mail : [email protected] e-mail : [email protected]
Website : www.nsdl.co.in Website : www.cdslindia.com
Address for Correspondence with ISC
Investor Service Centre
ITC Limited
37 Jawaharlal Nehru Road
Kolkata 700 071
Telephone nos. : 1800-345-8152 (toll free), 033-2288 6426 / 0034
Facsimile no. : 033-2288 2358
Website : www.itcportal.com
Shareholders holding shares in the dematerialised form should address their correspondence to the respective DPs, other than
for dividend and Report and Accounts, which should be addressed to ISC.
Shareholders are requested to provide their DP ID & Client ID / folio numbers, e-mail addresses and contact numbers to
facilitate prompt and efficient investor servicing.
*****************
Report of the Board of Directors
&
Management Discussion and Analysis
For the Financial Year Ended 31st March, 2023
SOCIO-ECONOMIC ENVIRONMENT Euro Area set to grow at a slower pace than 2022.
Emerging Markets and Developing Economies are
After two years of pandemic-led disruptions,
estimated to grow by 3.9% in 2023 as against 4.0%
FY 2022-23 marked a return to normalcy in
in 2022. As priority of policy makers currently centre
operations. However, geopolitical tensions, continued
largely around inflation control, the monetary policies
supply chain dislocations and climate crisis resulted
of central banks would remain a key monitorable in
in unprecedented inflation and volatility in global
the near term.
commodity and energy prices. Central banks across
the world responded swiftly with sharp increase in The Indian economy remained a bright spot in
interest rates within a relatively short time frame. FY 2022-23 amidst the global slowdown. Real
As per IMF estimates, global GDP growth slowed to GDP growth for the year is estimated at 7.0%
3.4% during 2022, well below projections made (first half: 9.6%; second half: 4.8%) with Nominal
at the beginning of the year. Growth in Advanced GDP growth at 15.9% (first half: 22.3%; second half:
Economies decelerated sharply to 2.7% in 2022 10.5%), reflecting the inflationary pressures in the
(Vs. 5.4% in 2021) while Emerging Markets & economy. While Agriculture grew by 3.3% in real
Developing Economies grew at a relatively slower terms, Services and Industry sectors grew by 9.4%
pace of 4.0% (Vs. 6.9% in 2021), mainly impacted by and 3.6% respectively, on a soft base. With steep
lower growth in China. inflation eating into household budgets, consumption
demand remained subdued in rural markets and for
Going forward, the global macroeconomic
discretionary categories in urban markets.
environment continues to be confronted with myriad
challenges; these include the continuing impact of In spite of severe global headwinds, India remained
the Russia-Ukraine conflict, global inflation remaining one of the fastest growing major economies enabled
sticky and at elevated levels, recessionary pressures by purposeful interventions by policy makers. The
in most Advanced Economies, spectre of stress Government of India has continued its thrust on
in the financial sector and the cost-of-living crisis in structural reforms to raise India’s potential growth.
several economies, especially in the near term. As per During the year, concerted efforts continued
IMF estimates, aggregate global economic growth to be made towards shaping India as a global
is expected to further decelerate to 2.8% in 2023. manufacturing hub through policy initiatives such
Advanced Economies are projected to grow at 1.3% as Production Linked Incentive (PLI), Make in India,
with major economies such as the United States and PM Gati Shakti, National Monetisation Pipeline
The Indian economy remained a bright spot in FY 2022-23 amidst the

global slowdown. The Government of India has continued its thrust
on structural reforms to raise India’s potential growth.

schemes and strengthening the country’s digital public announcements in the Union Budget 2023 including
infrastructure as well as the healthcare infrastructure. focus on expanding digital infrastructure, direct
Further, astute management of macros including fiscal benefit transfer, etc. are expected to provide further
and monetary policies also aided in mitigating the impetus to enhance India’s competitiveness, enable
volatility in the operating environment. greater empowerment and foster inclusive growth
while maintaining the path to fiscal consolidation.
While the pace of growth of the Indian economy is
Sharp step-up in capital expenditure outlay, focus on
projected to decelerate in FY 2023-24 against the
infrastructure and promotion of exports are expected
backdrop of global macro headwinds as aforestated,
to boost domestic manufacturing, spurring a virtuous
India would continue to be the fastest growing major
consumption-investment-employment cycle.
economy in the world. Even as inflation is projected to
soften on an overall basis, prices of certain As the Indian economy combats uncertainties in the
industry-specific commodities are expected to remain external environment, policy interventions focused
elevated with continued geopolitical issues and supply on supporting sustainable livelihoods and fostering
chain disruptions. The year is also expected to witness inclusive growth augur well for the economy.
‘El Nino’ weather phenomenon after three consecutive Structural support would need to be provided to
‘La Nina’ years; the impact of this on monsoon, sectors with large economic multiplier impact; the
along with related events like heatwaves, spatial and development of robust domestic agri and wood-based
temporal rainfall distribution etc. will remain a key value chains hold special importance in the Indian
monitorable for agri output, inflation and consumer context given their enormous potential to contribute to
demand in 2023. A good Rabi harvest, broad-based national objectives.
credit growth and Government’s thrust on capital
Agricultural sector plays a crucial role in the
spending to bolster investment activity supported by
economy with about half of the Indian workforce
buoyant tax collections, augur well for the economy
engaged in the sector. As reported in earlier years,
going forward. Healthier Bank and Corporate Balance
enhancing agricultural productivity and value addition
Sheets, improving capacity utilisation levels and
to international standards, while simultaneously
structural reforms represent some of the key positive
improving market linkages, remain critical to enhance
factors for revival in private capex.
the competitiveness of the agricultural sector
India is widely acknowledged as one of the most and drive significant increase in farmers’ income.
dynamic major economies in the world with immense India is the leading producer worldwide of several
headroom for growth over the medium and long commodities, including pulses, spices, fruits such as
term. A favourable demographic profile, increasing bananas, etc. While India’s agri exports have grown
affluence, rapid urbanisation and accelerated digital sharply over the last few years to reach appx.
adoption represent some of the key structural US$ 53 billion in FY 2022-23, its share of global
drivers of growth of the Indian Economy. Policy agri-trade remains low at only about 3%.
Agricultural sector plays a crucial role in the economy. Enhancing agricultural

productivity and value addition to international standards, while simultaneously
improving market linkages, remain critical to enhance the competitiveness
of the agricultural sector and drive significant increase in farmers’ income.

The Agri sector remains vulnerable to the vagaries building next generation agriculture that is climate
of climate change, facing considerable challenges resilient and capable of supporting gainful livelihoods.
as a primary source for food, fuel, fibre, fodder and Digitalisation of agriculture also offers the potential
livelihood security. According to an article in the to increase productivity and foster structural changes
Harvard Business Review, global food demand is across the value chain thereby enabling efficient use
expected to increase by up to 98% by 2050. of resources. In line with its commitment to harness
An exponential increase in production and productivity the power of cutting-edge digital technologies and
will be required to meet the growing needs of unlock the potential of India’s farmers, your Company
an increasing population at a time when natural had launched ITCMAARS (Metamarket for Advanced
resources are fast depleting and the impact of climate Agriculture and Rural Services). This ‘phygital’
change is becoming more severe. Evolving consumer ecosystem will empower the farming community
preferences will also require nutritious food that is and FPOs by delivering hyperlocal and personalised
sustainably sourced. These developments accentuate solutions by synergistically integrating NextGen
the need to enhance the competitiveness of agri-technologies. Further details on this transformative
agri-value chains in order to cater to the dynamic initiative are provided in the Agri Business section
market requirements of the future. India with its of this report.
tremendous strengths in agriculture has a unique
The Government of India has inspired the United
opportunity to play a leading role in this global
Nations to declare 2023 as the ‘International Year
transition and in forging an eco-system of sustainable,
of Millets’. This has indeed drawn global attention to
regenerative and climate smart agriculture.
this ‘super-grain’ that has the potential to redefine
Against this background, the Government’s initiative agriculture with its unique value proposition. Millets
to promote Farmer Producer Organisations (FPOs) are climate resilient crops using substantially lesser
as the core catalyst of agricultural transformation can water than other staples and grow in half the time as
indeed leverage economies of scale, enable sustainable other crops, offering a comprehensive solution for
agriculture, support market-led production and create sustained food security.
larger market access. FPOs provide the power of the
Your Company has spearheaded ‘ITC Mission Millets’,
collective to small and marginal farmers. FPOs have
leveraging its enterprise strengths in agriculture,
a tremendous potential to serve as major enablers in
food and hospitality to implement multi-dimensional
augmenting farm livelihoods, by facilitating a crucial link
interventions in this area. The holistic programme
between markets and individual farmers.
follows a strategic 3-fold approach – 1) developing
In this context, your Company has adopted targeted a ‘good-for-you’ product portfolio, 2) implementing
collaborative models to multiply the scale and impact sustainable farming systems, and 3) enhancing
of its agri and rural interventions. This collaborative consumer awareness through an Educate, Empower
approach, as opposed to a traditional transactional and Encourage approach. Your Company has
approach, can contribute meaningfully towards implemented a focused strategy in crafting a millet
The Government of India has inspired the United Nations to declare 2023 as the
‘International Year of Millets’. Your Company has spearheaded ‘ITC Mission Millets’,
leveraging its enterprise strengths in agriculture, food and hospitality to
develop a ‘good-for-you’ product portfolio, implement sustainable
farming systems and enhance consumer awareness.

based products portfolio under its world-class Indian infrastructure as well as in branded products that
brands for every occasion, age and format. To cater to benefit large agri-value chains. Corporate participation
the diverse needs of consumers, your Company has is essential not only to invest in requisite infrastructure,
launched products across traditional and modern but also to provide assured market linkages to
formats viz. ‘Gluten Free Flour’, ‘Multi-Millet Mix’ and farmers. A big thrust on India’s Food Processing
‘Ragi Flour’, Vermicelli and Biscuits under the sector can play a pivotal role and have a multiplier
‘Aashirvaad’ and ‘Sunfeast’ brands. Your Company effect which will lead to significant job creation,
has also designed products that suit every meal enhance rural incomes and help manage food
occasion like millet idlis for breakfast, biscuits & cookies inflation in a sustainable manner. In this context,
for snacking and noodles & pasta for other meals. the recently announced PLI Scheme for the Food
The thrust on millets is further exemplified by the Hotels Processing sector, with an estimated outlay of
Business creating easy-to-try recipes with millets to help ` 10900 crores, is expected to play a critical role in
encourage individuals experiment with the taste and
boosting investments, agri exports, farmer incomes,
texture of millets.
employment generation and building Indian brands for
In line with your Company’s commitment to empower the global market. Your Company has been included
farmers, your Company has developed a millets under the scheme for several of its Branded Packaged
agri-value chain with special thrust on enhancing Foods Businesses and in the Agri Business, details of
value-addition and market linkages. Your Company which are provided in the subsequent sections.
is also promoting FPOs in millet farming anchored
Similarly, the Agro-forestry sector, as a source of
by ITCMAARS. The Agri Business Division has
raw material for wood-based industry, is woefully
implemented two Public-Private Partnerships projects
constrained by policies that not only impede job
in Maharashtra and Andhra Pradesh, in partnership
creation in India but also promote avoidable imports.
with Indian Institute of Millets Research (IIMR),
Recent policy interventions to enable greening of
Hyderabad. Your Company remains committed to
supporting the Government’s efforts to promote millets wastelands and providing financial assistance to
given their immense benefits in terms of nutritional members of marginalised communities taking up
properties and attributes as a planet friendly and Agro-forestry is a commendable starting point to
climate resilient crop. reverse this situation. Supportive policies in this
area would go a long way in enhancing sustainable
It is pertinent to note that a substantial quantum of
livelihoods, augmenting alternative sources of
food is wasted along the chain in India, depending on
energy (bio-fuel) and enabling import substitution
the inherent perishability of the crop and the season.
for wood-based industries while simultaneously
Higher levels of food processing in the economy can
augmenting the Nation’s environmental capital.
create a much larger pull for quality agri-commodities,
thereby reducing farm wastages and raising farm The integrated nature of your Company’s
incomes. This would require focused investments business models along with strategic investments
in developing product-specific climate-controlled to enhance efficiencies across its operating
A big thrust on India’s Food Processing sector can play a pivotal role and have a
multiplier effect. The recently announced PLI Scheme for this sector is expected
to play a critical role in boosting investments, agri exports, farmer incomes,
employment generation and building Indian brands for the global market.
Your Company has been included under the scheme for several of its
Foods Businesses as well as Agri Business.

segments - including agri-commodity sourcing similarly, cost of cultivation is estimated to have

expertise for the Branded Packaged Foods reduced by nearly 15%, resulting in expansion of
Businesses and cost-competitive fibre supply chain farmer incomes by up to 60%.
along with in-house pulp manufacturing capability of
Your Company has also partnered with the State
the Paperboards & Specialty Papers Business – is
Government of Andhra Pradesh towards improving
a key source of competitive advantage, especially
the quality of chilli produced in the country to meet
against the backdrop of severe inflationary
global standards. A Public Private Partnership
headwinds. Each of your Company’s Businesses
programme - ‘Integrated Agri-Extension Platform for
derive benefits of synergy with seamless access to
Chilli Farm Value Chain Development’ - has been
the deep & varied capabilities across different parts
conceptualised under which 40,000 farmers covering
of the enterprise. Your Company’s interventions
about 1,00,000 acres are expected to be benefited
across operating segments are aligned to the
by 2025. In FY 2022-23, the programme covered
national priorities of enhancing competitiveness of
over 17,500 farmers and over 72,600 acres across
Indian agriculture and industry, generating
135 villages. Improved quality, farm productivity and
large-scale employment opportunities and supporting
higher share of farm gate sales enabled farmers
sustainable livelihoods, driving import substitution,
covered under the project to generate additional
creating national brands to maximise value
income.
capture in India, accelerating growth in tourism,
increasing Indian agri exports and promoting Your Company is working towards developing village
sustainable business practices. Investments made level institutions and fostering micro entrepreneurship
by your Company continue to be guided by the by promoting custom hiring centres for farm
national objectives of ‘Make in India’ and mechanisation, post-harvest product management
‘Doubling Farmers’ Income’ and the overarching infrastructure and community managed seed
theme of ‘AatmaNirbhar Bharat’ that seeks to make banks for self-reliance in quality seed material.
the country stronger, resilient and more competitive. Environmentally sustainable farm practices, including
zero-till sowing of wheat, direct seeding of rice,
The collaboration with NITI Aayog, aimed at boosting
micro-irrigation and watershed development, continue
agricultural and allied activities in 27 aspirational
to be promoted.
districts of eight states under the Aspirational
Districts programme, advanced to its second The farm sector faces enormous threats arising
phase in FY 2022-23. During the year, over 10 lakh out of climate change as evident from the growing
farmers were trained on package of practices for number of extreme weather events such as droughts
principal crops of the region as well as on livestock and floods. Given the vulnerabilities, it is critical to
management, taking the cumulative number of farmer strengthen climate resilience and adaptability of the
interactions to over 44 lakh. Estimates indicate yield agri-food sector. In this context, your Company’s
improvement of up to 30% for cotton, maize, paddy interventions in collaboration with CGIAR’s
and soyabean in locations covered by the programme; ‘Climate Change and Food Security Programme’
Investments made by your Company continue to be guided by the

national objectives of ‘Make in India’ and ‘Doubling Farmers’ Income’ and
the overarching theme of ‘AatmaNirbhar Bharat’ that seeks to make
the country stronger, resilient and more competitive.

to build climate smart villages were expanded to capital while enhancing shareholder value.
over 4,800 villages across 11 states covering This ‘Triple Bottom Line’ approach to creating larger
10 lakh acres and supported farmers in the ‘stakeholder value’, as opposed to merely focusing
management of risks arising from erratic and extreme on uni-dimensional ‘shareholder value’ creation,
weather events. Further, according to CGIAR’s is the driving force that defines your Company’s
estimates, your Company’s Climate Smart Village sustainability vision and its growth path into the future.
intervention in Madhya Pradesh demonstrated average
Your Company is a global exemplar in ‘Triple Bottom
increase in yield of 38% and 15% in soyabean and
Line’ performance. The focus on creating unique
wheat respectively, over the baseline. Reduction
business models that generate substantial livelihoods
in cost of cultivation along with yield improvement
across the value chains has led to your Company’s
led to an increase in net income by 93% in soyabean
Businesses supporting over six million sustainable
and 46% in wheat over the baseline and average
livelihoods, many of whom belong to the weaker
Green House Gas emissions reduced by 66%
sections of society.
for soyabean and 13% for wheat as compared
to the baseline. Your Company sustained its ‘AA’ rating by MSCI-ESG
for the fifth successive year - the highest amongst
In Kapurthala District, Punjab, your Company under
global tobacco companies. Your Company has
its flagship programme of ‘ITC Mission Sunehra Kal’
also been included in the Dow Jones Sustainability
has, over the last five years, implemented solutions
Emerging Markets Index for the third year in a
that have effectively substituted the burning of paddy
row – a reflection of being a sustainability leader
stubble by farmers. During the year, the programme
in the industry and a recognition of its continued
covered 2.5 lakh acres with appx. 92.5% of the area
commitment to people and planet. Your Company has
(2.3 lakh acres) witnessing total stoppage of stubble
also been rated at the ‘Leadership Level’ score of
burning, thereby avoiding appx. 1.8 lakh tonnes of
‘A-’ for both Climate Change and Water Security
carbon release into the atmosphere.
(Asia and Global average at ‘C’ for climate change
Although India has appx. 18% of the world population, and ‘B’ for water security) by CDP, a reputed
its share of natural resources is disproportionately low independent global platform for disclosures on
with only 2% of global land mass, 4% of freshwater environmental impacts.
resources and 2% of forest resources. It is more
As a testament to your Company’s ‘Triple Bottom Line’
critical than ever before to redouble efforts, both at the
philosophy and Responsible Luxury ethos, all major
national and corporate level, to fashion strategies that
hotel properties of your Company are LEED Platinum
foster sustainable, equitable and inclusive growth.
certified, making your Company a trailblazer in green
It is your Company’s belief that businesses can bring hoteliering globally. ITC Grand Chola, the 600-key
about transformational change by pursuing innovative super-premium luxury hotel complex in Chennai, is
business models that synergise the creation of amongst the world’s largest LEED Platinum certified
sustainable livelihoods and the preservation of natural green hotels. In 2020, ITC Windsor’s best practices
Your Company sustained its ‘AA’ rating by MSCI-ESG for the 5th successive year -
the highest amongst global tobacco companies. Your Company has also been
included in the Dow Jones Sustainability Emerging Markets Index for the 3rd year
in a row – a reflection of being a sustainability leader and a recognition
of its continued commitment to people and planet.

on carbon management distinguished it as the first FINANCIAL PERFORMANCE

hotel in the world to be LEED Zero Carbon certified.
Against the backdrop of a challenging operating
Since then, 11 more ITC Hotels have been certified
environment as stated earlier, your Company’s
as LEED Zero Carbon. ITC Mughal became the first consumer centricity, agility in seizing market
hotel globally to be awarded the LEED Zero Water opportunities, focus on execution excellence and
Certification by the U.S. Green Building Council proactive strategic interventions enabled it to post
(USGBC), followed by ITC Sonar, which is the second strong performance across all operating segments.
hotel to be awarded the certification globally. Further,
Overall for FY 2022-23, Gross Revenue at ` 69480.89
your Company’s ‘Sankhya’ data centre in Bengaluru
crores increased by 17.6%, while EBITDA increased
became the first data centre in the world to be
by 26.5% to ` 23944.47 crores. Profit Before Tax
awarded the LEED Zero Carbon certification. Also,
and Exceptional items at ` 24677.54 crores grew by
the Kovai unit of your Company is the first site in India
24.4% over previous year and Profit After Tax stood at
and the first paper mill in the world to achieve the
` 18753.31 crores (previous year ` 15057.83 crores).
highest platinum rating under the ‘Alliance for Water
Total Comprehensive Income for the year stood at
Stewardship Standards’.
Your Company has been championing the urgent Earnings Per Share for the year stood at ` 15.15
need to combat climate change for building a more (previous year ` 12.22).
secure future and the role it can play in enabling
– The FMCG-Others Segment registered strong
a net-zero economy. Your Company continues
growth amidst subdued demand conditions.
to pursue a low carbon growth strategy through
Robust growth was witnessed across all major
extensive decarbonisation programmes across its categories of Branded Packaged Foods viz.
value chain whilst also developing adaptation plans Staples, Biscuits, Snacks, Noodles, Beverages.
across its sites. Your Company is the only enterprise While ‘Fiama’ and ‘Vivel’ range of Personal Wash
in the world of comparable dimensions to have products and ‘Engage’ Fragrances performed
achieved and sustained the three key global indices of well, the Hygiene portfolio witnessed moderation
environmental sustainability of being ‘water positive’ in demand with the ebbing of the effects of the
(for 21 years), ‘carbon positive’ (for 18 years), and pandemic, while remaining well ahead of
‘solid waste recycling positive’ (for 16 years). With pre-pandemic levels. In the Education &
its bold Sustainability 2.0 agenda, your Company is Stationery Products Business, notebook sales
setting the bar even higher, and remains committed to registered sharp growth with resumption of
making a meaningful contribution across all the three educational institutions. The Incense Sticks
sectors of the economy – Agri, Manufacturing and (Agarbattis) Business witnessed robust recovery
Services, while retaining its status as a sustainability during the year after two years of pandemic
exemplar. Further details on this subject are available induced disruptions. Segment Revenue for the year
in the Sustainability section of this Report. grew by 19.6% with Segment EBITDA growing
Against the backdrop of a challenging operating environment,

your Company’s consumer centricity, agility in seizing market opportunities,
focus on execution excellence and proactive strategic interventions
enabled it to post strong performance across all operating segments.

at a faster pace of 34.9% to ` 1953.97 crores. on the back of robust growth across end-user
Segment EBITDA margins expanded by segments; Segment Revenue and Segment
120 bps amidst severe inflationary pressures. Results grew by 18.8% and 34.9% respectively.
The Businesses continued to drive improvement Segment margins expanded by appx. 300 bps,
in profitability through multi-pronged interventions leveraging the integrated nature of the business
viz. premiumisation, supply chain agility, judicious model, Industry 4.0, digital interventions and
pricing actions, digital initiatives, strategic cost strategic investments in pulp import substitution
management and fiscal incentives. and proactive capacity augmentation in
– The FMCG-Cigarettes Segment witnessed Value Added Paperboards segment.
sustained claw back of volumes from illicit trade The operating environment in the last three financial
on the back of deterrent actions by enforcement years has been extremely challenging due to
agencies and relative stability in taxes. Market disruptions caused by the pandemic, unprecedented
standing continued to be reinforced through inflationary pressures and sluggish demand
focused portfolio/market interventions and conditions, amongst others.
agile execution.
It is heartening to note that, powered by the
– The Hotels Segment witnessed a stellar recovery ITC Next Strategy of building a Future-Ready,
during the year, clocking robust growth in Consumer Centric, Climate Positive and Inclusive
Revenue and Profits buoyed by weddings, leisure organisation anchored on the paradigm of
and MICE (Meeting, Incentives, Conferencing, ‘Responsible Competitiveness’, your Company has
Exhibition) segments along with progressive emerged stronger and enhanced its competitiveness
pick-up in business travel. Segment Revenue across operating segments through this period,
doubled over FY 2021-22 and stood at 1.4x of and sustained its position as a global exemplar
pre-pandemic levels. Segment EBITDA margin in Sustainability.
stood at 32.2% representing an expansion of
The Directors of your Company are pleased to
930 bps over FY 2019-20.
recommend a Special Dividend of ` 2.75 per share
– The Agri Business Segment delivered a resilient in addition to the Final Dividend of ` 6.75 per share
performance with Segment Revenue and Results for the financial year ended 31st March, 2023.
growing by 12.2% and 28.8% respectively. Together with the Interim Dividend of ` 6.00 per share
Restrictions imposed on wheat & rice exports paid on 3rd March, 2023, the total Dividend for the
impacted Segment Revenue. Margin expansion financial year ended 31st March, 2023 amounts to
was driven by leaf tobacco exports and
` 15.50 per share (previous year ` 11.50 per share).
value-added agri products.
Total cash outflow on account of Dividend (including
– The Paperboards, Paper & Packaging Segment Interim Dividend of ` 7448.41 crores paid in
demonstrated strong performance during the year March 2023) will be ` 19255.02 crores.
Powered by the ITC Next Strategy of building a Future-Ready,

Consumer Centric, Climate Positive and Inclusive organisation anchored on the
paradigm of ‘Responsible Competitiveness’, your Company has emerged stronger,
enhanced its competitiveness across operating segments and sustained
its position as a global exemplar in Sustainability.

VALUE-ADDED AND CONTRIBUTION amounted to ` 3163 crores, comprising purchase

TO EXCHEQUER of raw materials, spares and other expenses of
` 2950 crores and import of capital goods
Over the last five years, the Value-Added by your
of ` 213 crores.
Company, i.e. the value created by the economic
activities of your Company and its employees,
PROFITS, DIVIDENDS AND RETAINED EARNINGS
aggregated over ` 271000 crores, of which over
` 183000 crores accrued to the Exchequer. (` in crores)
PROFITS 2022 - 23 2021 - 22
Including the share of dividends paid and retained
earnings attributable to government owned a) Profit Before Tax@ 24750.41 19829.53
institutions, your Company’s contribution to the
b) Tax Expense
Central and State Governments represented appx. 6025.32 4833.88
– Current Tax
75% of its Value-Added during the year.
– Deferred Tax (28.22) (62.18)
Your Company has, over the years, ranked amongst
the Top 3 Indian corporates in the private sector in c) Profit for the year@ 18753.31 15057.83
terms of Contribution to Exchequer. d) Other Comprehensive Income 29.26 573.85
e) Total Comprehensive Income 18782.57 15631.68

FOREIGN EXCHANGE EARNINGS
STATEMENT OF RETAINED EARNINGS
Your Company continues to view foreign exchange
earnings as a priority. All Businesses in your a) At the beginning of the year 30060.39 28210.63
Company’s portfolio are mandated to engage
b) Add: Profit for the year 18753.31 15057.83
with overseas markets with a view to testing and
demonstrating international competitiveness and c) Add: Other Comprehensive Income (16.81) 23.66
(net of tax)
seeking profitable opportunities for growth. Foreign
exchange earnings of the ITC Group over the last d) Add: Transfer from Share Options Outstanding 20.82 315.34
Account on exercise and lapse
ten years aggregated nearly US$ 9.0 billion, of which
agri exports constituted appx. 60%. Earnings from e) Less : Dividends
agri exports, which effectively link small farmers – Final Dividend of ` 6.25 7702.03 7077.59
with international markets, are an indicator of your (2022: ` 5.75) per share
Company’s contribution to the rural economy. – Interim Dividend of ` 6.00 7448.41 6469.48
(2022: ` 5.25) per share
During FY 2022-23, your Company and its – Income Tax on Dividend paid (refund) (20.43) –
subsidiaries earned ` 12783 crores in foreign
f) At the end of the year 33687.70 30060.39
exchange. The direct foreign exchange earned by
@
your Company amounted to ` 10777 crores, urrent year includes Exceptional items representing proceeds received
C
in partial settlement of the insurance claim towards leaf tobacco stocks,
mainly on account of exports of agri-commodities. which were destroyed due to fire at a third party owned warehouse in an
Your Company’s expenditure in foreign currency earlier year.
Over the last five years, the Value-Added by your Company,

i.e. the value created by the economic activities of your Company and
its employees, aggregated over ` 271000 crores, of which over
` 183000 crores accrued to the Exchequer.

FMCG CIGARETTES consumer of tobacco, legal cigarettes constitute

only 8% of overall tobacco consumption in India, as
After two years of severe disruptions due to the
against a global average of 90%. It is pertinent to
pandemic, the legal cigarette industry recovered
note that India accounts for less than 2% of global
during the year with normalisation in the operating
cigarette consumption despite having 18% of the
environment. Stability in taxes on cigarettes, backed
world’s population- making India’s per capita cigarette
by deterrent actions by enforcement agencies enabled
consumption amongst the lowest in the world.
the legal cigarette industry to partially claw back
volumes from illicit trade. This in turn led to higher Over the years, discriminatory and punitive taxation
demand for Indian tobaccos and robust growth in on cigarettes has led to progressive migration
revenue to the Exchequer from the tobacco sector. from consumption of duty-paid cigarettes to other
lightly taxed/tax-evaded forms of tobacco products,
Your Company sustained its leadership position in
comprising illicit cigarettes, bidi, chewing tobacco,
the cigarette industry through its unwavering focus on
gutkha, zarda, snuff, etc. It is pertinent to note that
nurturing a future-ready portfolio of world-class products
while the share of legal cigarettes in total tobacco
anchored on its integrated seed to smoke value chain,
consumption has declined from 21% in 1981-82 to a
superior consumer insights, robust innovation pipeline
mere 8%, the aggregate tobacco consumption in the
and world-class product development capabilities. Your
country has increased over the same period. As a
Company continues to counter illicit trade and reinforce
result, despite accounting for less than 1/10th of the
market standing by fortifying the product portfolio
tobacco consumed in the country, duty-paid cigarettes
through innovation, democratising premiumisation
contribute more than 4/5th of the revenue generated
across segments and enhancing product availability
from the tobacco sector.
backed by superior on-ground execution. Several
differentiated variants such as ‘Classic Connect’, Taxes on cigarettes remain one of the highest in India
‘Gold Flake Indie Mint’, ‘Gold Flake Kings Mixpod’, as depicted in the chart:
‘Classic Alphatec’, ‘Gold Flake Smart Mintz’,
‘Wills Fab’ and ‘Lucky Strike’ were recently introduced. Tax per 2000 Cigarettes as a percentage of Per Capita GDP
The Business also expanded its presence in focus USA 0.46%
Japan 0.75%
markets with the launch of differentiated offerings China 1.14%
across segments and strengthened its presence Germany 1.14%
Russia 1.19%
in Duty-Free outlets at airports. Canada 1.37%
Malaysia 2.03%
Globally, cigarettes constitute the dominant form Thailand 2.10%
of tobacco use. In the Indian context, tobacco use Pakistan 2.44%
UK 2.66%
comprises a diverse range of chewing and smoking Australia 3.01%
India 7.70%
formats that are available at multiple price points
consequent to punitive and discriminatory taxation on Source: Tax data – WHO Report on Global Tobacco Epidemic, 2021
Per capita GDP – World Bank (Data for the year 2020)
cigarettes. While India is the world’s second largest
Legal cigarettes constitute only 8% of overall tobacco consumption in India.

India accounts for less than 2% of global cigarette consumption despite
having 18% of the world’s population, making India’s per capita
cigarette consumption amongst the lowest in the world.

Taxes on cigarettes in India are multiple times marked buoyancy and grew by 10.2% during
higher than in developed countries viz. 17x of USA, this period.
10x of Japan, 7x of Germany and so on. Further,
Period Increase in Growth in
the same is also substantially higher than that in
Tax Rate Revenue
neighbouring countries.
Collections
It is pertinent to note that India’s per capita cigarette FY 2012-13 to FY 2016-17 (CAGR) 15.7% 4.7%
consumption is amongst the lowest in the world and is
Apr’18-Jan’20 over Jul’17-Mar’18 – 10.2%
significantly lower compared to that of China, Japan,
USA, UK and even neighbouring countries such as Relative moderation in taxation in the subsequent
period, backed by deterrent actions of the enforcement
Bangladesh and Pakistan.
agencies, has helped the legal industry to partially
recover volumes that were ceded to illicit trade in
Per Capita Consumption of Cigarettes earlier years, benefiting all stakeholders, including the
No. of Cigarettes per annum tobacco farmers, the consumers and the Exchequer.
1971
Punitive taxes on the legal cigarette industry in
earlier years have resulted in rapid growth of illicit
1133
898 897
cigarette trade – making India the 4th largest illicit
cigarette market globally according to Euromonitor
468 394
estimates. Over the years this has created attractive
90
" tax arbitrage opportunities for unscrupulous players
China Japan Bangladesh USA UK Pakistan India
indulging in illicit cigarette trade. While legitimate
cigarette industry volumes have declined consistently
Source: The Tobacco Atlas – 7th Edition, 2022
over the last decade, illicit cigarette trade volumes, in
contrast, have grown rapidly during the same period,
During the period FY 2012-13 to FY 2016-17, excise accounting for about 1/3rd of the legal industry.
duty on cigarettes increased sharply at a CAGR of
During the year, there were extensive media reports
15.7%; however, tax revenue from cigarettes grew
on the multitude of cases of evasion of taxes/duties
by a mere 4.7% CAGR during the same period. In
by dealers in illicit cigarettes which were unearthed by
FY 2017-18, the legal cigarette industry was further
raids conducted by Directorate of Revenue Intelligence
impacted by a sharp rise of 20% in tax incidence as a (DRI) and other enforcement agencies. ‘Illicit markets:
result of increase in excise duty and transition to the A Threat to Our National Interests’, a study published
GST regime. Thereafter, relative stability in taxation by FICCI-TARI in September 2022, noted that
until January 2020 helped the legal industry partially “The consumption of illegal cigarettes in India has
claw back volumes lost to the illicit trade in earlier increased, signalling a shift from legal products to
years; consequently, revenue collections witnessed a cheaper substitutes or illicit products, which have no
Punitive taxes on the legal cigarette industry in earlier years have resulted in
rapid growth in illicit cigarette trade, making India the 4th largest illicit
cigarette market globally according to Euromonitor estimates.

or little tax element in them. When taxes are raised (Prohibition of Advertisement and Regulation of Trade
beyond a certain optimum level, consumers gravitate and Commerce, Production, Supply and Distribution)
towards cheaper alternatives or illicit supplies, Act, 2003 (COTPA) requires cigarette packages to
which are normally smuggled or tax evaded goods”. display the statutorily mandated pictorial and textual
According to this report, illicit trade causes an warnings covering 85% of the surface area of the
annual revenue loss of appx. ` 15500 crores to the packet - one of the largest in the world.
Exchequer. With respect to other tobacco products as It may be observed that smuggled international
well, the revenue losses are significant since about brands of cigarettes do not bear any of the pictorial
68%1 of the total tobacco consumed in the country or textual warnings mandated by Indian laws or,
remains outside the tax net. bear much smaller pictorial/textual warnings as per
The DRI, in its report “Smuggling in India 2021-22” the tobacco laws of the countries from where these
acknowledges the high incidence of taxes in India cigarettes originate. As reported in prior years, findings
providing opportunities for illicit trade of cigarettes. from research conducted by IMRB International, an
The report states: “High Incidence of tax on cigarettes independent market research organisation, show that
in India results in a tax arbitrage in favour of smuggled the lack of pictorial warnings on packets of smuggled
cigarettes on which no taxes are paid and there is no international brands of cigarettes or their diminutive size
creates a perception in the consumers’ mind that these
statutory requirement of pictorial warning covering
illicit cigarettes are ‘safer’ than domestic duty-paid
at least 85 percent of the packaging space. More
cigarettes that carry the 85% pictorial warnings. The
importantly, the smuggled cigarettes are, on an
combination of low prices to consumers due to tax
average, 50 percent cheaper in the Indian Market,
evasion and the misleading perception created by
compared to the price of any similar cigarette brand.
the absence of statutory pictorial warnings provides
From a public health perspective, the smuggling of
significant buoyancy to illicit cigarette volumes.
cigarettes also poses a very serious challenge since
a part of the smuggled cigarettes are counterfeits and India is among the top three tobacco growing countries
the quality of tobacco and other ingredients used in in the world. Tobacco plays a significant role in
the said cigarettes, is inferior.” the Indian economy on account of its considerable
contribution to the agricultural, industrial and
Tobacco control measures in India have ranked
export sectors2. The illicit cigarette trade also has
amongst the most stringent in the world from the
a deleterious impact on farmers and farm workers
time of enactment of the Cigarettes (Regulation of
engaged in the tobacco value chain. In India,
Production, Supply and Distribution) Act, 1975, to the
cigarettes are manufactured largely using Flue Cured
present. India is also one of the few countries where
Virginia (FCV) tobacco grown in the states of Andhra
tobacco products are regulated across the value
Pradesh, Telangana and Karnataka. As smuggled
chain – from their manufacture to sale to consumers.
international brands of cigarettes do not use Indian
The Cigarettes and Other Tobacco Products
2 Report on Tobacco Control in India, Ministry of Health & Family Welfare,
1 eport on the impact of current tax framework on the tobacco sector in India
R GoI, 2004 (Jointly supported by Centers for Disease Control and Prevention,
and suggestions for its improvement - 2014, by ASSOCHAM and KPMG. USA and the World Health Organisation).
As per the FICCI-TARI report, illicit trade causes an annual revenue loss of
around ` 15500 crores to the Exchequer. The illicit cigarette trade also has a
deleterious impact on farmers and farm workers engaged
in the tobacco value chain.

tobaccos, in addition to revenue losses, the growth have had numerous negative, albeit unintended
of illicit cigarette trade has also resulted in a sharp repercussions. These include:
drop in demand for Indian FCV tobaccos in the
– rapid growth in illicit cigarette volumes, which
domestic market. resulted in sub-optimisation of the revenue
It is pertinent to note that several other major potential of the tobacco sector and significant loss
tobacco producing countries, including the USA, to the Exchequer. It is estimated that on account
have established regulatory frameworks taking into of illicit cigarettes alone, revenue loss to the
consideration the economic interests of their tobacco Government is appx. ` 15500 crores per annum.
farmers. The punitive and discriminatory taxation & – widespread availability of illicit cigarettes and
regulatory regime on cigarettes in India continues other tobacco products of dubious quality and
to adversely affect the livelihood of Indian tobacco hygiene to consumers at extremely affordable
farmers with corresponding gains to those countries prices. As a result, despite accounting for less than
that have opted for moderate and equitable tobacco 1/10th of the tobacco consumed in the country,
regulations. These developments, coupled with lower duty-paid cigarettes contribute more than 4/5th of
availability of Indian crop, lower export incentives in the revenue generated from the tobacco sector.
India and relative weakness of currencies in certain
– a large component of tobacco consumption in
competing geographies have had a debilitating impact
the country, aggregating around 68%, remaining
on 46 million livelihoods comprising tobacco farmers,
outside the tax net.
farm workers, etc. who are dependent on the tobacco
value chain. It is estimated that since 2014, Indian – persistent negative impact on the livelihood of
tobacco farmers have suffered a cumulative drop in tobacco farmers and others dependent on tobacco.
earnings of over ` 7500 crores. Studies by the Central Tobacco Research Institute
(CTRI) indicate that on account of agro-climatic
As reported in earlier years, your Company and conditions, there is no equally remunerative
several other stakeholders had challenged the validity alternate crop that can be grown in the FCV
of the pictorial and textual warning covering 85% tobacco growing regions of the country.
of the surface area of the packet prescribed under
Your Company continues to engage with policy
COTPA. The Honourable Karnataka High Court, by its
makers for a framework of pragmatic, equitable,
judgement in December, 2017, held the 85% pictorial
non-discriminatory, evidence-based regulations
warnings to be factually incorrect and unconstitutional.
and taxation policies that balance the economic
Upon Special Leave Petitions filed by the Government
imperatives of the country and tobacco control
and others, the Honourable Supreme Court has
objectives, cognising for the unique tobacco
stayed the judgment of the High Court. The cases are
consumption pattern in India. Stability in taxes is
pending before the Honourable Supreme Court.
critical to address the interests of all stakeholders of
The extremely stringent regulations along with the this industry, including tobacco farmers, consumers
discriminatory and steep taxation on cigarettes and the Exchequer.
Stability in taxes is critical to address the interests of all

stakeholders of this industry, including tobacco farmers,
consumers and the Exchequer.

Manufacturing facilities of the Business continue to be Business continued to be recognised with Kidderpore
modernised by inducting contemporary technologies unit receiving the ‘Excellent Energy Efficient Unit
to drive innovation and secure higher levels of Award’ at the CII National Award for Excellence in
productivity and product excellence. New benchmarks Energy Management 2022. The 21 MW wind farm in
continue to be set in areas of quality, sustainability, Karnataka also received ‘Best Performing Wind Farm
supply chain responsiveness and productivity. Award’ in Karnataka, Andhra Pradesh & Telangana
Cutting-edge technologies such as Industry 4.0 and by Indian Wind Power Association for FY 2021-22
Data Sciences are being leveraged to build a smart and ‘Performance Excellence Award for Solar and
manufacturing environment of connected systems. Wind Plants – 2022’ under the Wind Category from
These initiatives, coupled with innovative capabilities, CII. Ranjangaon unit received ‘Shreshtha Suraksha
in-house design and development expertise, have Puraskar’ from National Safety Council of India
further improved the speed-to-market of new launches under Safety Awards-2022 (Manufacturing Sector).
and augmented the innovation pipeline of the Business. Saharanpur unit won ‘IGBC Excellence Award’ under
Factory Building category from CII.
It is extremely satisfying to report that your Company
continued to be recognised for its commitment Your Company is well positioned to fortify its market
towards operational excellence. The Bengaluru standing in the legal cigarette industry, leveraging its
unit won ‘Responsible Manufacturer of the Year superior strategies, integrated seed to smoke value
Award 2022 – Platinum Medallion’ by Kaizen Hansei chain, future-ready portfolio, robust innovation pipeline,
Institute, wing of Kaizen Institute of India. Two cutting-edge manufacturing & digital technologies and
projects from Kidderpore and Saharanpur units, were best-in-class execution capabilities. A stable taxation
recognised as ‘Winner’ under ‘Automation & Robotics’ and regulatory regime remains critical to enable
and ‘Operational Excellence Leadership’ categories the legal cigarette industry to recover volumes
respectively by Frost & Sullivan. from illicit trade.
In line with your Company’s commitment to the FMCG – OTHERS

‘Triple Bottom Line’, the Business continued to focus
With steep inflation impinging upon household
its efforts for resource conservation and adoption of
budgets, consumption demand remained subdued,
best-in-class technologies and processes. During
especially in rural markets and for certain discretionary
the year, the Business continued to evaluate and
categories in urban markets. Input costs remained
adopt various sustainable inputs in its operations.
elevated, even as certain commodities witnessed
Nearly 57% of the total energy used by the Business
sequential moderation in prices towards the latter
is generated from renewable sources. Various
half of the year.
interventions over the years such as investments in
renewable energy sources, and continued wheeling Notwithstanding the challenging conditions prevailing
of wind energy through interstate open access have during the year, your Company’s FMCG Businesses
enabled the same. Sustainability initiatives of the grew ahead of the industry in both urban and rural
Your Company’s FMCG Businesses grew ahead of the industry in both

urban and rural markets driven by enhanced distribution footprint,
superior last mile execution, deep consumer insights,
purposeful innovation and portfolio premiumisation.

markets driven by enhanced distribution footprint, enhance brand loyalty. Your Company continues
superior last mile execution, deep consumer insights, to make strategic interventions aimed at creating
purposeful innovation and portfolio premiumisation. a futuristic platform to deliver delightful brand
Discretionary/Out-of-Home categories witnessed experiences seamlessly across touchpoints through
strong growth driven by agile innovation and relevant personalised journeys mapped to individual’s needs,
portfolio assortments across consumer cohorts preferences and context.
and trade channels. Staples & Convenience Foods
‘Sixth Sense’, the Marketing Command Centre
registered strong traction driven by region-specific
and Consumer Data Hub – an AI-powered
interventions, differentiated offerings and focused
hyper-personalised platform backed by a robust
brand investments. Health & Hygiene portfolio of
partner ecosystem for content and data, is being
personal care products witnessed moderation in
increasingly utilised to gain insights on market trends
demand, while remaining ahead of pre-pandemic
and consumer behaviour, as well as synthesise the
levels. The first half of the year saw significant
same to craft contextual and hyper-personalised
increase in prices of key inputs such as edible oils,
brand communication and product development.
packaging materials, soap noodles, fuel, logistics,
Over 3,000 content assets have been deployed
etc., which exerted considerable pressure on margins.
leveraging this capability within a relatively short span
This was mitigated by adopting a comprehensive
of time at significantly lower cost.
approach across the value chain focusing sharply
on cost management, portfolio premiumisation, Your Company continues to leverage deep consumer
competitive trade and marketing investments, fiscal insights and cutting-edge R&D capability to address
incentives (including PLI), supply chain agility, digital present and emergent consumer need spaces.
interventions and judicious pricing actions. Over 90 new products anchored on the vectors
of Health & Nutrition, Hygiene, Protection & Care,
Your Company’s FMCG Businesses recorded
Convenience & On-the-Go, Indulgence etc., were
Segment Revenue of ` 19122.50 crores representing
launched across target markets during the year,
an increase of 19.6% over the previous year.
leveraging the R&D platforms of your Company’s
Segment EBITDA for the year registered a robust
Life Sciences and Technology Centre (LSTC) and
growth of 34.9% to ` 1953.97 crores with margins
agile product development teams across Businesses.
improving by 120 bps to 10.2%, amidst elevated
commodity prices. Cutting-edge digital technologies including Industry
4.0, Advanced Analytics, Big Data and industrial
A consumer-centric approach, backed by a
Internet of Things (IoT) continue to be deployed
future-ready portfolio and agility in execution, remains
towards strengthening your Company’s real time
at the core of your Company’s strategy to rapidly
operations and execution platform, and enhancing
scale up the FMCG Businesses.
productivity, driving efficiency and cost agility.
The Businesses continue to leverage the power These initiatives are anchored on the key pillars
of digital to drive superior consumer insights & of synchronised planning and forecasting, agile,
innovation, deepen consumer engagement and resilient & efficient supply chain, smart buying &
Cutting-edge digital technologies including Industry 4.0, Advanced Analytics,

Big Data and industrial Internet of Things (IoT) continue to be deployed
towards strengthening your Company’s real time operations and
execution platform, and enhancing productivity,
driving efficiency and cost agility.

value engineering, smart manufacturing and smart Your Company’s FMCG brands have achieved
demand capture and fulfilment. Strategic investments impressive market standing3 in a relatively short
have been stepped up to build platforms of insights span of time in their respective categories viz.
by harmonising and integrating large and isolated Aashirvaad is No. 1 in Branded Atta, Bingo! is
datasets powered by AI/ML technologies and No. 1 in the Bridges segment of Snack Foods,
‘human-centred design’ & visualisation tools. Sunfeast is No. 1 in the Cream Biscuits segment,
Classmate is No. 1 in Notebooks, YiPPee! is No. 2
The FMCG Businesses comprising Branded
in Noodles and Mangaldeep is No. 2 in Agarbattis
Packaged Foods, Personal Care Products, Education
(No. 1 in Dhoop segment).
and Stationery Products, Incense Sticks (Agarbattis)
and Safety Matches have grown at an impressive Your Company remains focused on rapidly scaling
pace over the past several years. up the FMCG businesses anchored on strong growth
platforms and a future-ready portfolio. It is pertinent
FMCG - Others to note that the chosen categories, which are largely
characterised by low household penetration levels
Revenue (` Crores) 19123 and/or low per capita consumption, offer significant
15994 headroom for long-term growth. This is borne out by
14728
several reports which highlight that your Company’s
12505 12844
11329 total addressable market expansion potential is
10512
9038
9731 amongst the highest in the Indian FMCG space.
8122
7012 In this context, it is noteworthy that your Company
is well poised to address value-added adjacencies
3642
2511 and categories of the future by leveraging the
109 25+ powerful mother brands it has established over
the years. Recent examples of such brand extensions
FY03
FY08
FY10
FY13
FY14
FY15
FY16
FY17
FY18
FY19
FY20
FY21
FY22
FY23
include Aashirvaad to Dairy, Ready-to-Eat, Vermicelli,

Salt and Spices; Sunfeast to Dairy Beverages and
Cakes; Bingo to Namkeens; ITC Master Chef to
Your Company’s vibrant portfolio of over 25 world-class
Frozen Snacks and Cooking pastes; Classmate to
Indian brands, largely built through an organic growth
Writing instruments; Savlon to Sanitisers, Wipes and
strategy in a relatively short period of time,
Disinfectant sprays etc. Simultaneously, the FMCG
represents an annual consumer spend of nearly
Businesses continue to make strategic investments
` 29000 crores and reach over 230 million households
in building categories of the future and establishing
in India. These home-grown, purpose-led Indian
your Company’s ‘right to win’ by progressively scaling
brands, powered by agile innovation, support the
up those nascent categories where beachheads
competitiveness of domestic value chains, especially
have been created. Your Company is also proactively
in the agri space, thereby ensuring creation and
retention of value within the country. 3 Source: Nielsen, Kantar Household Panel
Your Company’s vibrant portfolio of over 25 world-class Indian brands, largely

built through an organic growth strategy in a relatively short period of time,
represents an annual consumer spend of nearly ` 29000 crores and
reach over 230 million households in India.

pursuing value accretive acquisition, joint venture already delivering substantial benefits will realise their
and collaboration opportunities towards accelerating full potential over the medium term and continue to
growth and value creation. create long-term value.
The FMCG Businesses continue to expand Your Company remains confident of rapidly scaling up
their export footprint leveraging the equity of their its FMCG Businesses on the back of a future-ready
world-class brands – with a reach now spanning portfolio powered by purpose-led brands,
over 60 countries. Your Company also continues to world-class quality, deep consumer insights,
explore strategic opportunities in proximal markets as cutting-edge innovation and an agile, resilient and
a potential vector of growth going forward. The PLI efficient supply chain. The Businesses will continue
scheme has provided further fillip to your Company’s to leverage your Company’s institutional strengths
exports across Biscuits & Cakes, Snacks, Dairy and viz. strong backward linkages with the Agri Business,
Ready-to-Eat categories. deep and wide multi-channel distribution network,
cuisine knowledge resident in the Hotels Business,
The FMCG Businesses continue to create structural
industry-leading packaging knowhow and access to
competitive advantages and enhance profitability
robust R&D platforms nurtured by LSTC.
by leveraging world-class distributed manufacturing
and logistics infrastructure, multi-channel distribution Branded Packaged Foods
network and newer routes to market, smart buying
& value engineering and smart manufacturing. Your Company sustained its position as one of the
Investments over the years in several state-of-the-art fastest growing branded packaged foods businesses
Integrated Consumer Goods Manufacturing and in the country, leveraging a robust portfolio of brands,
Logistics facilities (ICMLs) have laid a strong a slew of first-to-market products, a range of
foundation to drive structural advantages such distinctive products customised to address regional
as ensuring product freshness, enhancing agility tastes and preferences, supported by an efficient
and responsiveness of the supply chain, reducing supply chain and distribution network. This was
cost of servicing proximal markets through lower achieved in the face of a volatile operating
distance-to-market etc. Capacity utilisation at the environment marked by unprecedented inflation in
11 operational ICMLs continues to be ramped up commodity prices, global supply chain disruptions and
along with focused smart manufacturing interventions climate change impacting crop outputs.
leveraging automation and Industry 4.0 technologies The Branded Packaged Foods Businesses remain
to drive operational efficiencies, yield and energy focused on addressing emerging consumer needs
management and further enhance safety and quality. with innovations anchored on the vectors of health,
With growing scale, supply chain operations are nutrition, wellness, immunity, naturals, indulgence
being increasingly delayered through direct-to-market and convenience. The Businesses launched several
shipments thereby reducing freight costs and innovative and first-to-market products leveraging
eliminating multiple handling. Your Company is superior consumer insights, capabilities of your
confident that these strategic interventions which are Company’s Life Sciences and Technology Centre
The Branded Packaged Foods Businesses remain focused on addressing emerging

consumer needs with innovations anchored on the vectors of health, nutrition,
wellness, immunity, naturals, indulgence and convenience. The Businesses launched
several innovative and first-to-market products leveraging superior consumer
insights, capabilities of your Company’s Life Sciences and Technology Centre and
the cuisine expertise resident in your Company’s Hotels Business.

(LSTC) and the cuisine expertise resident in your continues to deploy robust, scalable and secure digital
Company’s Hotels Business. technologies and infrastructure to enhance agility,
accelerate innovation and drive impactful business
With the overarching vision to ‘Help India Eat Better’,
outcomes. Several campaigns launched during the
your Company’s Nutrition strategy seeks to create
year received wide recognition and won prestigious
a sustainable ecosystem anchored on a portfolio of
healthier, affordable & accessible ‘Good For You/ awards across leading platforms, including the
Free From’ value-added products, supported by ‘Innovative Integrated Media Campaign’ from The
responsible policies in line with national priorities Advertising Club’s Abbys for Aashirvaad Multigrain
on nutrition. Your Company’s institutional strengths Atta’s Happy Tummy Campaign, Gold for ‘Best
viz. strong agri business supply chain, product Performance Marketing Campaign’ by Maddies for
development knowledge of the LSTC and cuisine B Natural e-Commerce campaign, Gold in
knowledge in the Hotels Business are being leveraged ‘Innovation in e-Commerce’ for Aashirvaad Svasti
to develop products providing consumers wholesome Ghee, Gold in ‘Online Commerce Campaign for
and enjoyable food experiences. Customer Acquisition’ for Sunbean Coffee by
Campaign India’s Digital Crest Awards and Silver in
Encouraged by the Government of India’s initiative of
‘Best Content Marketing on Films’ for Dark Fantasy
promoting millets, a range of millet-based products
Batman Collaboration by Exchange4Media.
have been introduced. In the Staples Business,
‘Ragi Flour’, ‘Gluten Free Flour’, ‘Multi-Millet Mix’ were The Businesses continue to increasingly leverage
recently launched under the ‘Aashirvaad’ brand. ‘Sixth Sense’, the Marketing Command Centre and
The Biscuits Business augmented its portfolio with the Consumer Data Hub and generated more than 3000+
launch of ‘Sunfeast Farmlite Super Millets’, with two creatives and 50+ content solutions during the year.
variants – ‘Chocochip Millet’ and ‘Multi Millet’ cookies; The rise of social commerce has enabled brands to
while the Confectionery Business also launched millet engage with their target audience in a focused manner
based ‘Fantastik Choco Sticks’. Your Company is using social media. During the year, your Company
further developing a comprehensive millets-based leveraged technologies such as Augmented Reality (AR)
portfolio under its popular brands and in familiar for creating wider impact, worked with popular
formats to enable easier adoption. influencers, especially amongst the youth, and also
commenced pilot campaigns integrating AI based
The Businesses continued to make sharp targeted
solutions and technology.
brand building investments to grow the core portfolio,
address value-added adjacencies leveraging Relentless focus on delivering superior quality
mother brands and scale up categories of the future. products to consumers continues to be a key source
Clutter-breaking communication and consumer of sustainable competitive advantage for the Branded
engagements, both in conventional and digital media, Packaged Foods Businesses. In this context, the
along with focused market development efforts Businesses continue to leverage the agri-commodity
resulted in reinforcement of brand positioning for sourcing expertise resident in your Company’s
your Company’s bouquet of world-class brands in Agri Business to procure high quality raw materials,
the branded packaged foods space. The Business thereby ensuring the highest level of quality,
With the overarching vision to ‘Help India Eat Better’, your Company’s
Nutrition strategy seeks to create a sustainable ecosystem anchored on a portfolio of
healthier, affordable & accessible ‘Good For You/Free From’ value added products,
supported by responsible policies in line with national priorities on nutrition.

consistency and safety in its products. In addition, confident of sustaining Aashirvaad’s position as
each of your Company’s branded packaged food India’s No. 1 Staples brand going forward.
products is manufactured in HACCP/ISO-certified
‘Aashirvaad Salt’ continued to strengthen
manufacturing locations ensuring compliance with leadership in key focus geographies and posted
all applicable laws and adherence to the highest healthy growth across markets during the year,
quality norms. supported by its distinctive positioning – ‘Created
– In the Staples Business, ‘Aashirvaad’ witnessed by Sun and Sea - pure just like nature intended
robust growth on an elevated base and fortified it to be’. ‘Crystal Salt’, the variant recently launched
its market standing across geographies, while in Southern markets, scaled up to become the
addressing emerging consumer preferences for No. 2 brand within two years of launch.
healthy products and catering to regional tastes. In the Spices category, your Company continued to
The value-added portfolio, consisting of Multigrain, deliver robust growth with its endeavour to provide
Select and Sugar Release Control Atta posted consumers unique and personalised experiences
healthy growth driven by higher salience in Modern that meet their taste preferences and reflect the
Trade and e-Commerce channels. A differentiated regional flavours of the state. During the year,
range of products comprising ‘Gluten Free Flour’, the Business grew on the back of distribution
‘Ragi Flour’, ‘Multi-Millet Mix’, ‘Organic Atta’ and expansion in focus states, sharp region-specific
‘Organic Dals’ continued to witness strong growth communication and an enhanced portfolio with
trajectory. ‘Aashirvaad Vermicelli’, launched innovative new products. The ‘Sunrise’ brand
last year, gained robust consumer traction; the strengthened its market standing in the core
range was augmented with the launch of market of West Bengal and extended gains in
‘Ragi Vermicelli’ during the year. Product portfolio East/North East markets to fortify its position as
was further strengthened with the launch of one of the leading Spices brands of the region.
‘Aashirvaad Bansi Rava’, ‘Aashirvaad Samba ‘Aashirvaad Spices’ continues to enhance its
Broken Wheat’, ‘Aashirvaad Double Roasted Suji presence in emerging channels and core markets
Rava’ and ‘Aashirvaad Besan’. The Business also to enable full portfolio play along with expansion
expanded distribution of Frozen Indian Flat Breads of the blended portfolio. Together, the two brands
(Paratha, Naan and Chapati), hitherto offered are well positioned to leverage your Company’s
only in international markets, in select domestic institutional strengths to progressively enhance
markets. Focused and purposeful marketing their market standing in the Spices category.
inputs, consumer activations and region-specific – The Biscuits category witnessed strong growth
interventions supported by sharply directed during the year, driven by robust performance
media investments, especially in digital platforms, of the core portfolio, scale up of innovations and
enabled further improvement in Aashirvaad’s brand the launch of several exciting and differentiated
health metrics. Powered by the trust reposed by variants. The Business continues to strengthen
nearly 74 million households, your Company is its core portfolio with investments behind powerful
The Branded Packaged Foods Businesses continued to make

sharp targeted brand building investments to grow the core portfolio,
address value-added adjacencies leveraging mother brands and scale up
categories of the future.

brand ideas, superior products and calibrated – The Ready-To-Eat (RTE) category continued to
pricing actions. The Business augmented its scale up in the institutional and exports segments.
portfolio with the launch of ‘Sunfeast Supermilk’ Growth in exports was led by the ‘Kitchens of India’
and ‘Sunfeast Thin Arrowroot’ in select markets. range to the USA, Canada and other countries
Emerging channels continue to grow at an along with introduction of a range of ‘Aashirvaad’
accelerated pace on the back of superior product products to target the Indian diaspora in the USA.
assortments and portfolio mix. Institutional business registered strong growth
– The Snacks Business sustained its robust growth driven by acquisition of new customers, including
trajectory during the year driven by the core Food Service segment, through a range of
variants as well as new launches. A slew of new customised offerings.
launches during the year, viz., ‘Bingo! Street Bites’, – The Frozen Snacks category under the ‘ITC
a differentiated offering, combining quintessential Master Chef’ brand, which caters to both Retail
Indian flavours of Pani Puri & Dahi Chaat in a and Food Service channels, continued to deliver
modern format, lattice cut chips under ‘Bingo!
industry leading growth, powered by a range of
Hashtags’ and refreshed packs of ‘Bingo! Tedhe
innovative and differentiated offerings. Over 65
Medhe’ namkeen portfolio, amongst others, elicited
high quality and differentiated products distributed
excellent consumer response. ‘Bingo!’ continued
across both traditional and emerging channels are
to be the market leader in the Bridges segment
rapidly gaining consumer franchise. The portfolio
across the country, and in the potato chips
offers a delectable range of Indian & Western
segment in South India.
snacks, Frozen Prawns and Frozen Vegetables.
– ‘YiPPee!’ witnessed strong growth during the
– ‘Aashirvaad Svasti’ fresh dairy portfolio comprising
year, aided by judicious pricing interventions and
pouch milk, curd, lassi and paneer continued to
focused brand investments. The product portfolio
gain strong consumer traction on the back of
was augmented with the launch of ‘Quik Mealz’
in a differentiated ‘noodles in a bowl’ format, in best-in-class quality standards, differentiated
target markets. In line with the purpose of creating products and superior taste profile. These products
‘A better world’, the brand continues to promote are currently available in Bihar, West Bengal and
sustainability through plastic waste management Jharkhand markets. The value-added portfolio
and recycling. During the year, more than 30 lakh is constantly being enriched with launch of
school children were educated on plastic waste differentiated offerings such as ‘Litchi’ flavoured
recycling with an initiative to collect plastic Lassi, select Indian desserts under ‘Aashirvaad
equivalent to 10 lakh YiPPee! Noodles wrappers Mithaas’, ‘Paneer Slice’ and organic range of
across 100+ cities. The Business also organised ‘Aashirvaad Svasti Ghee’ in select markets. During
the ‘Terra by YiPPee!’ contest, a new waste the year, the Dairy industry witnessed severe
upcycling initiative wherein, contest winners were pressure on input costs. In spite of a challenging
awarded tote bags/laptop sleeves/pouches made operating environment, the Business registered
from YiPPee! wrappers. strong growth during the year.
During the year, more than 30 lakh school children were educated on
plastic waste recycling with an initiative to collect plastic equivalent to
10 lakh YiPPee! Noodles wrappers across 100+ cities.

– With return to normalcy in market conditions, the During the year, a convenient powder format
Beverages portfolio witnessed a resurgence during was also introduced based on consumer insights.
the year. The Business continued to leverage The product has received encouraging consumer
the ‘Fruit and Fibre’ proposition of ‘B Natural’ to response.
deepen consumer connect and increase brand
– Exports remain a key area of focus for the
affinity. The Dairy Beverages portfolio leveraged
Business. Currently, your Company’s Branded
the strong equity of ‘Sunfeast’ and ‘Dark Fantasy’
Packaged Food products are exported to
to grow rapidly in target markets and in emerging
more than 60 countries. During the year,
channels. The Business has strengthened
your Company’s exports of Branded Atta was
presence in rapidly emerging Direct to Consumer
(D2C), Travel & QSR segments and sustained impacted due to restrictions on export of wheat
consumer facing partnerships with alternate flour. Exports have since resumed under the
delivery channels which aided the Business to Advance Authorisation scheme introduced by
deliver superior performance. the Government. With its portfolio of winners
and a high quality distribution pipeline, your
– The Confectionery category continued to nurture its
Company is confident of scaling up exports at an
range of premium portfolio by leveraging Fantastik
accelerated pace in focus markets across a range
Choco Sticks and ‘Jelimals’ and recovered to
of categories, leveraging the equity of its core
pre-pandemic levels. The portfolio was augmented
brands such as Aashirvaad, Sunfeast and
with the launch of ‘Candyman Fruitee Fun
Kitchens of India.
3 in 1 chews’, a differentiated offering in the fruit
bucket and has received encouraging consumer Over the years, your Company has made significant
feedback. ‘Fabelle’ chocolates continue to receive investments in setting up state-of-the-art Integrated
excellent response from discerning consumers Consumer Goods Manufacturing and Logistics
setting new benchmarks in the luxury and premium facilities (ICMLs) proximal to large demand centres.
chocolate segments. During the year, availability These facilities are at the heart of your Company’s
of the gourmet range of Fabelle chocolates was strategy to create structural advantage by enhancing
enhanced beyond the ITC Hotels boutiques by product freshness, improving market responsiveness,
leveraging e-Commerce platforms and food delivery reducing the cost of servicing proximal markets,
aggregators in six major cities. The product offering enabling scalability besides setting new benchmarks
at Fabelle boutiques across ITC Hotels was in safety, quality and product hygiene. Your Company
augmented with the addition of a range of bespoke continues to leverage the benefits of the state-of-the-art
eclairs. A new Fabelle boutique was launched at the Ancillary Manufacturing cum Logistics Facilities
recently opened ITC Narmada in Ahmedabad. (AMLFs) at Pudukkottai and Kapurthala. These
– ‘Sunbean Beaten Caffe’, a unique ready-to-use automated facilities are co-located with the ICMLs
beaten coffee paste that produces a rich, creamy and provide several structural advantages including
and frothy cup of coffee, continues to receive inventory optimisation, delayering operations and
favourable response from discerning consumers. lowering cost of market servicing.
The Branded Packaged Foods Businesses export to more than 60 countries.

With its portfolio of winners and a high quality distribution pipeline, your Company
is confident of scaling up exports at an accelerated pace in focus markets across
a range of categories, leveraging the equity of its core brands
such as Aashirvaad, Sunfeast and Kitchens of India.

Your Company recently commissioned a new industry has significant potential to transform the
ICML at Khordha, Odisha. With this, 11 ICMLs are agriculture sector through increased market linkages,
operational in locations proximal to large demand improvement in the efficiency of resource use,
centres enabling delivery of fresher products, enhancement in the farmer incomes, expansion of
reduction in distance to market and delayering of exports and generation of employment opportunities.
operations. The capacity utilisation at existing ICMLs Development of the food processing sector will aid
continues to be ramped up. With every successive in addressing issues of food security and inflation,
ICML coming on-stream, the representation of improved nutrition availability and prevention of
women in the workforce has progressively increased. wastage, amongst others.
The ICML units received several prestigious awards
Recognising this potential and headroom for growth
and accolades from leading industry bodies such
in the Indian market, your Company has made
as the Confederation of Indian Industry (CII),
significant investments in food processing and
International Research Institute for Manufacturing
remains focused on establishing itself as the leading
(IRIM), Integrated Manufacturing Excellence
player in the branded packaged foods industry.
Initiative (IMexI), National Safety Council of India
The Government’s Production Linked Incentives
(NSCI), Ministry of Labour and Employment, etc. for
(PLI) Scheme for the food processing industry will
their high standards of safety, quality, operational
incentivise fresh investments, enable building Indian
excellence and benchmarks in green and sustainable
brands for the global market, promote exports and
manufacturing. The Malur unit became the first food
boost farmer incomes. Your Company has been
processing facility in Asia to be awarded the AWS
included under the PLI Scheme towards sales-based
Platinum-level certification, the gold standard for
incentives in the Ready to Eat, Fruits & Vegetables
water stewardship in the world. These accolades are
and Marine categories respectively as well as for
testament to your Company’s unwavering commitment
incentives towards expenditure incurred for branding
to providing products with the highest levels of quality
and marketing in export markets. Your Company is
while reducing the environmental impact of the same.
confident of meeting the requisite investment and
The Business implemented several strategic cost sales growth targets towards the same. In line with the
management initiatives in areas such as supply chain Government’s initiatives towards promoting millets,
optimisation, smart procurement and productivity a PLI scheme for millet-based products has also
improvement through automation, leveraging new-age been introduced during the year. Your Company has
technologies such as Industry 4.0 and smart utilities. been included under the PLI Scheme for millet-based
These interventions helped mitigate the unprecedented products as well.
cost inflation witnessed during the year and also offset
Your Company is well poised to strengthen its position
start-up costs of new facilities and strategic investments
as one of the fastest growing food companies and
in brand building for gestating categories.
the ‘most trusted provider of food products’ in the
With the growing importance of processed food Indian market in line with its purpose to ‘Help India
products in the consumer basket, the food processing Eat Better’. Your Company remains confident of
11 ICMLs are operational in locations proximal to large demand centres enabling

delivery of fresher products, reduction in distance to market and delayering of
operations. With every successive ICML coming on-stream, the representation
of women in the workforce has progressively increased. The Malur unit
became the first food processing facility in Asia to be awarded
the AWS Platinum-level certification for water stewardship.

rapidly scaling up the Branded Packaged Foods agility in mitigating the impact of commodity inflation
Businesses leveraging the strong growth platforms enabled the Business to strengthen the core and
nurtured over the years in chosen categories which grow emerging categories during the year, in spite of
offer immense headroom for growth and powerful a challenging operating environment.
purpose-led mother brands that have the potential
In the Personal Wash segment, premiumisation
to be extended to address opportunities in adjacent
continues to remain a key lever of growth. During
spaces. In addition, your Company’s deep & wide
the year, ‘Fiama’ registered strong growth fuelled
multi-channel distribution network, with growing
by investments in brand building, wider distribution
presence in emerging channels such as e-Commerce,
and growth across channels. Fiama gel bar format
Modern Trade, On-the-go and Institutional sales,
witnessed significant gains during the year, whilst
continues to deliver competitive advantage through
providing consumers a differentiated and compelling
superior product availability, visibility and freshness.
offering. A new range of ‘Happy Naturals’ Perfume
Recent investments in establishing a world-class
mists and Shower Gels were launched during the
distributed manufacturing footprint have created a
year to meet the growing demand for ‘Naturals’.
solid foundation to secure structural advantage over
The portfolio was further augmented with launch of
time. Cutting-edge R&D platforms of your Company’s
‘Deep Clean Charcoal and Grapefruit’ range of gel
LSTC are driving agile innovation and faster
bathing bars and shower gel, exclusively for men. The
turnaround times for introduction of differentiated &
brand continued building on promoting mental wellness
first-to-market products catering to constantly evolving
while improving access to mental health experts.
consumer needs. Investments in leading-edge digital
technologies and platforms continue to be stepped up The ‘Vivel’ range of soaps continued to build
across the value chain to drive competitive advantage. momentum and posted healthy growth during
the year. The premium ‘VedVidya’ range was
Personal Care Products launched during the year in three variants –
‘Nargis & Kumkumadi oil’, ‘Nagarmotha &
Your Company’s Personal Care Products Business
Bahumanjari oil’, ‘Chandan & Badamam oil’. Vivel’s
continued to strengthen its core strategic levers
proposition of empowerment of women through the
of building brands with purpose, introducing
#AbSamjhautaNahi campaign continues to resonate
first-in-category innovations, focusing on categories
well with target consumers.
of the future and accelerating presence in emerging
channels. Hyper-inflationary pressure on prices of key The Fragrance category witnessed strong growth
inputs witnessed in the previous year continued to across segments with the premium range of
impact the industry for most of the financial year. ‘Engage’ perfumes garnering encouraging response.
The surge in inflation also led to moderation in The Business launched a new premium EDP range
demand, especially in rural markets; however, with best-in-class fragrances for occasion-based use
progressive improvement was witnessed during the which includes a differentiated ‘gender neutral’ variant
course of the year. Portfolio premiumisation, launch ‘One Soul’. In the popular segment, Deo sprays were
of innovative and differentiated range of products and also launched in the mini-can format.
Your Company’s Personal Care Products Business continued to

strengthen its core strategic levers of building brands with purpose,
introducing first-in-category innovations, focusing on categories
of the future and accelerating presence in emerging channels.

The ‘Savlon’ portfolio witnessed moderation in and rapid evolution of ‘beauty tech’ have opened
demand with the waning of the pandemic, while up opportunities for providing relevant personalised
remaining above pre-pandemic levels. Sustained experiences to consumers. The Business continues to
focus on distribution expansion, proactive cost drive a range of Digital Marketing initiatives to target
management, enhanced supply chain responsiveness relevant consumer cohorts.
with a range of exciting offerings enabled the
In order to further strengthen its presence in the
Business to augment its germ-protection equity.
D2C segment, your Company acquired a minority
Savlon powder handwash, in a convenient low unit
stake in ‘Mylo’ – a digital start-up, which offers
pack format, witnessed strong traction amongst
science backed, expert-led solutions primarily
target consumers.
in the mother and baby care segments. In addition,
The Business continued to expand its presence further investments were made during the year in
in the Home Hygiene segment by leveraging the ‘Mother Sparsh’, a premium ayurvedic and natural
‘Nimyle’ brand. During the year, Nimyle strengthened personal care start-up to support the company’s
its leadership position in core markets. The brand growth plans.
continued to demonstrate robust growth in emerging
Your Company is setting up a state-of-the-art
channels on the back of its unique proposition of
Personal Care and Home Care products manufacturing
‘100% Natural Action’.
unit in Uluberia, in line with its strategy of building
Under the Skincare portfolio, ‘Dermafique’ introduced in-house manufacturing capabilities for products with
an AI powered smart skin advisor to provide unique formulations, enhancing supply chain agility
personalised skin health analysis, empowering and responsiveness and reducing distance to market.
individuals to know their skin better and adopt
solutions suited to unique skin needs. During the Fiama, Vivel and Savlon have been frontrunners in
year, the brand launched its D2C platform to deepen adopting sustainable packaging for the soap portfolio.
consumer engagement based on sharp consumer The Fiama and Vivel wrapped soap portfolio has also
insights and drive revenue growth. The brand also transitioned to re-cyclable mono material while Savlon
strengthened its equity through relevant product benefit soap wrappers now contain 70% recycled plastic in
communications, leveraging influencers to drive buzz the PET film used. Sustainable materials are being
and engagement, running digital campaigns etc., used for in-store merchandising for Fiama and Vivel
which is visible in strong conversions and repeat rates soaps. Further, Fiama Shower Gel and Handwash
on digital platforms. bottles are now made with 50% Post-Consumer
Recycled (PCR) material.
The Business bolstered its presence in the rapidly
growing e-Commerce channel and continues to widen The state-of-the-art R&D facility of your Company
its assortment of offerings tailored to consumer needs. continued to leverage cross functional collaborations
With reinforced focus on footprint expansion, salience to develop innovative and differentiated products
of the e-Commerce channel for the Business stood backed by robust science-based claims, to meet the
at double digits. The proliferation of digital access emerging consumer needs.
Fiama, Vivel and Savlon have been frontrunners in adopting sustainable packaging.
The Fiama and Vivel wrapped soap portfolio has also transitioned to re-cyclable
mono material while Savlon soap wrappers now contain 70% recycled plastic
in the PET film used. Fiama Shower Gel and Handwash bottles are now
made with 50% Post-Consumer Recycled (PCR) material.

Your Company received accolades in the field of Digital The Business continued to leverage its innovation
and Marketing excellence. Vivel’s #WorkForHome platform in collaboration with your Company’s Life
campaign, celebrating the relentless and unconditional Sciences and Technology Centre to craft differentiated
contribution of homemakers and encouraging equality, products of superior quality.
won a ‘Silver’ at the ‘Digixx 2022 Awards’ and a
The ‘Classmate Interaktiv’ Notebooks portfolio was
‘Gold’ at the ‘ACEF 2022 Awards’. Further, Vivel’s
augmented with the launch of over 40 differentiated
Bodywash was awarded the ‘Campaign India Digital
variants under the Origami range. Extensive
Crest Silver Award’ for use of social media on
consumer engagement with 1,000+ schools and
‘Sharechat’. Engage ‘Pocketful O’Stories 3.0’
2 Lakh+ students through craft-based competitions
bagged 2 ‘Golds’ for best use of social media for UGC
enabled Classmate to fortify its position as an
(User Generated Content) in the ‘ET Digi+ 2023 Awards’
innovation leader in the industry. In the youth and
and in ‘AFAQs Digies 2023 Awards’.
college segment, the Business accelerated the
Your Company’s strategic focus continues to be on adoption of ‘Classmate Pulse’ spiral format through
expanding the core categories of Personal Wash, activations and driving new consumption segments.
Fragrance and Homecare through innovative, The ‘Paperkraft’ portfolio was further scaled up with
differentiated and consumer centric products, highest launch of ‘Paperkraft Vintage Kraft’ cover series for
levels of product quality and impactful communication.
leisure writing and ‘Paperkraft Debossed PU’
Your Company, with its future-ready portfolio and
series with motivational quotes. The Writing
purpose-led brands, is well positioned to seize growth
Instruments portfolio was bolstered with the launch
opportunities and emerge as a significant player in
of ‘Classmate Hook’ pens, a unique innovation that
this space.
enhances the brand’s visibility and appeal.
Education and Stationery Products To promote holistic learning in line with the National
The Education and Stationery Products industry Education Policy 2020, an inter school initiative
recorded a strong recovery with progressive ‘Classmate All Rounder’ was conceptualised providing
resumption of physical classes at educational students with a platform to nurture and showcase
institutions and demand recovering to pre-pandemic their varied skills. The initiative received tremendous
levels. However, on the supply side, industry had to response with over 3 Lakh students across
contend with unprecedented inflationary pressures. 1000+ schools participating in the very first edition.
The Business strengthened its market leadership The multi-channel capability of your Company’s
position in the industry, delivering a competitively strong distribution network was leveraged to enhance
superior performance driven by portfolio premiumisation, availability and drive sales. The Business sustained
judicious pricing actions and continued focus on its leadership position on e-Commerce platforms
cost and working capital management, leveraging through consistent availability of a wide assortment of
institutional strengths such as backward integration in products, backed by focused interventions to enhance
the value chain for supply of paper and paperboard consumer traction. Consumer engagement was
and multi-channel distribution infrastructure. further enhanced through Classmateshop.com,
The ‘Classmate Interaktiv’ Notebooks portfolio was augmented with the launch of
over 40 differentiated variants under the Origami range. Extensive consumer
engagement with 1,000+ schools and 2 Lakh+ students through craft-based
competitions enabled Classmate to fortify its position
as an innovation leader in the industry.

a D2C platform, which facilitates brand affinity through Incense Sticks (Agarbattis) and Safety Matches
creative product personalisations. Industry-first
The Agarbatti industry witnessed robust recovery
propositions such as personalised videos and
after two years of pandemic induced disruptions.
AI (Artificial Intelligence) generated cover designs
further enhanced consumer engagement. Your Company’s flagship brand ‘Mangaldeep’
effectively leveraged market opportunities and
The Business continues to ramp up capacity
continued to enhance its standing in the Incense
utilisation of its dedicated notebook manufacturing
Sticks category. With presence across several formats
facility at Vijayawada. Equipped with state-of-the-art
viz. Agarbattis, Dhoop and Sambrani, Mangaldeep
technology, the facility enables the Business to
provides discerning consumers a differentiated and
develop differentiated notebook formats, drive cost
superior product experience with a deep emotional
reduction and address opportunities in overseas
connect with devotion. The Mangaldeep App,
markets. During the year, the Business expanded its
which has garnered over 1.6 million downloads,
exports footprint to newer geographies & segments
continues to play a key role in the devotional journey
and successfully onboarded large global retailers
of consumers. The Business continued to drive
leveraging capabilities at the aforestated facility.
brand salience through sharply focused marketing
The Classmate and Paperkraft range of notebooks interventions. Proactive steps were also taken
leverage your Company’s world-class fibre line at towards driving product mix enrichment and cost
Bhadrachalam - India’s first ozone treated elemental optimisation. Unprecedented inflationary headwinds in
chlorine free facility - and embody the environmental key ingredients viz. paper board, chemicals, etc. were
capital built by your Company in its paper business. mitigated by leveraging economies of scale, superior
The Business continued to scale up the Paperkraft range portfolio mix and driving sourcing efficiencies.
of notebooks using Forest Stewardship Council (FSC)
Based on superior consumer insights, Mangaldeep
certified paper, made at your Company’s paper mill.
introduced a slew of offerings during the year.
With over 250 million school going students, India has
The brand launched ‘Mangaldeep 3 in 1’ Agarbatti
one of the largest education systems in the world. The
in the Popular segment during the year. Built on the
Indian Education and Stationery Products industry
proposition of ‘Prarthana Ki Mehak, Prarthana Ke
holds immense potential driven by growing literacy,
Baad Bhi’ - Mangaldeep 3 in 1 Agarbatti has three
increasing enrolment ratios, the Government’s
unique long-lasting fragrances enabling longer lasting
continued thrust on the education sector and a
auspiciousness.
favourable demographic profile of the country’s
population. Your Company, with its strong brands, Mangaldeep also introduced ‘Dhuno Cups’ in West
robust product portfolio, collaborative linkages with Bengal and Assam markets, which offers a modern
small & medium enterprises and superior distribution and innovative solution to the age-old tradition of
network is well poised to sustain its leadership Dhunuchi in the daily puja. In the Dhoop segment,
position in the industry. staying in tune with the modern consumer’s need for
Your Company’s flagship brand ‘Mangaldeep’ effectively

leveraged market opportunities and continued to enhance its standing
in the Incense Sticks category. The Agarbatti Business has also partnered
with around 150 visually impaired fragrance evaluators from across the country
as a part of its ‘Mangaldeep Sixth Sense’ panel for fragrance evaluation and selection.

convenience and variety, Mangaldeep introduced TRADE MARKETING & DISTRIBUTION

bamboo-less ‘Dhoop Sticks’ in four modern Your Company’s Trade Marketing & Distribution
fragrances– Luxury, Flora, Sandal and Rose. (TM&D) vertical demonstrated remarkable agility and
The Business has also partnered with appx. 150 responsiveness in capitalising on the emergent market
visually impaired fragrance evaluators from across opportunities arising from normalisation of market
the country as a part of its ‘Mangaldeep Sixth Sense’ conditions, premiumisation and increasing online
panel for fragrance evaluation and selection. purchases. Concerted actions were taken across
all nodes of operations to ensure efficient market
Over the years, the Business has implemented servicing and availability of your Company’s products.
several measures to enhance the competitiveness These include realigning distribution infrastructure,
of the agarbatti value chain in India. These include deploying innovative delivery models, forging strategic
import substitution and backward integration of partnerships, leveraging digital technologies and
sourcing raw materials and manufacturing raw battis adopting a focused approach to accelerate growth in
using indigenous inputs. The Business has been emerging channels.
a pioneer in developing domestic manufacturing
As stated in earlier years, the dynamic interplay of
capabilities for raw battis and is also working closely varied and evolving consumer preferences, multiplicity
with the Government under the aegis of the of channels including emergence of new channels,
‘National Bamboo Mission’ and other nodal agencies diverse demographic profiles & socio-economic factors
of state governments for cultivating bamboo and vast geographical landscape pose a high degree
plantations in the country. of complexity for distribution of FMCG products in
The proactive measures implemented by your India. Given the varied set of needs and challenges
Company, as highlighted above, sub-serve the associated with each channel, TM&D continues to
sharpen channel-specific strategies to efficiently
national priorities of employment generation and
service consumer demand across the country.
provide a source of competitive advantage to the
Valuable insights into consumer behaviour and
Business while contributing towards enhancing
channel-specific trends gained over the years continue
income of bamboo farmers in the agarbatti stick and
to be leveraged to deliver superior performance in
raw batti manufacturing value chain.
terms of availability, visibility and freshness.
In the Safety Matches industry, the Business
The rapid growth of Modern Trade & e-Commerce
strengthened its market leadership position channels, along with the emergence of several new
by leveraging the brand ‘Homelites’ – built on players, has necessitated deployment of differentiated
differentiated positioning of stronger, longer and market/outlet specific strategies to seize the emerging
karborised sticks. The Business continues to focus opportunities. The Modern Trade channel witnessed
on scaling up the share of value-added products in robust growth in the retail format aided by store
its portfolio and enhancing supply chain efficiency by expansion by accounts, both in metros and Tier 2 &
sourcing products manufactured closer to markets. Tier 3 cities, coupled with omni-channel presence.
Your Company’s Trade Marketing & Distribution vertical demonstrated remarkable

agility and responsiveness in capitalising on the emergent market opportunities.
TM&D continues to leverage cutting-edge digital technologies to drive productivity,
improve market servicing, draw actionable insights for sharp-focused interventions,
augment sales force capability and deepen connect with retailers.

Growth in the channel continues to be driven by During the year, urban markets continued to witness
deploying a format-based assortment approach channel shift with the growth of Modern Trade and
catering to the needs of a diverse set of shoppers e-Commerce. Automation, data-led insighting and
with category specific sell-out strategies. Agile supply machine-learning enabled solutions have been
chain initiatives including collaborations with supply increasingly leveraged to drive field-force productivity
chain partners led to enhanced operational and and performance across urban markets. Customised
execution efficiencies. servicing based on outlet potential and retail
engagement programmes have been deployed to
Significant increase in internet penetration led by
stimulate demand for your Company’s products with
smartphones, growing adoption of digital payments,
enhanced focus on premium grocery outlets.
attractive loyalty programmes, wide assortment
of products and faster deliveries continue to drive In rural markets, your Company continued to deploy
the rising salience of e-Commerce channel. Your market-specific interventions to enhance direct
Company’s collaborations with leading e-Commerce coverage on the basis of socio-economic indicators
platforms on all aspects of operations viz. category and market potential. This has been supported
development, marketing, supply chain and customer through a hub and spoke distribution model with
acquisition has enabled it to significantly scale the continued expansion of rural stockists network
up sales in this channel. This was augmented to 1.2x over previous year and collaborations with
by development of exclusive and relevant pack rural-focused eB2B players. Your Company has also
assortments, driving ‘Digital First’ brands and enabling leveraged its deep connect with rural entrepreneurs
platform discoverability through jointly curated in key geographies to build local connect and carry
campaigns. Joint Business Plans, built and executed out extensive consumer engagement activities. These
in close co-ordination with e-Commerce platforms, initiatives have substantially enhanced distribution
coupled with account specific strategies further reach of your Company’s range of products in rural
consolidated the market standing of your Company in markets leading to sales growth ahead of industry.
this channel. Sales through the e-Commerce channel
The Food Service and Institutional channels have
has grown rapidly in recent years and stood at appx.
also witnessed robust growth during the year
5x of FY 2019-20 levels; the channel accounts for
leveraging existing partnerships and enhancement of
over 10% of your Company’s Branded Packaged
product range. Further, new routes-to-market were
Foods and Personal Care Products sales.
unlocked through several strategic partnerships to
Your Company’s multi-channel distribution network, cater to specialised segments, including ‘on-the-go’
which facilitates availability of its products in nearly consumption, direct marketing, airports & airlines
seven million retail outlets of which more than one-third and QSRs. Your Company continues to scale up its
are serviced directly, was further strengthened during presence in the rapidly growing emerging channels
the year with the addition of new markets and outlets and has further expanded availability of its products
to its direct servicing base. Market coverage was with new trade partners on Quick Commerce and
stepped up to appx. 2x of pre-pandemic levels. Social Commerce platforms.
Your Company’s multi-channel distribution network, which facilitates availability of

its products in nearly seven million retail outlets of which more than one-third are
serviced directly, was further strengthened during the year. Market coverage
was stepped up to appx. 2x of pre-pandemic levels.

During the year, TM&D continued to focus on enhance their competitiveness in the growing digital
enhancing availability in markets proximal to its marketplace as also enable them to effectively
ICMLs through increased awareness levels, product address evolving consumer buying behaviour.
trial generations, expansion of distribution reach and
‘ITC e-Store’, your Company’s exclusive D2C
consumer promotions.
platform, is now operational in 24,000+ pin-codes and
TM&D continues to leverage cutting-edge digital continues to receive excellent consumer response.
technologies to drive productivity, improve market ITC e-Store has also partnered with ONDC in the
servicing, draw actionable insights for sharp-focused journey of unlocking newer consumer touchpoints
interventions, augment sales force capability and addressing buyer preferences in the growing
and deepen connect with retailers. Technology e-Commerce arena. Powered by state-of-the-art
enablement in the form of customised mobility and digital technology and robust fulfilment infrastructure,
routing solutions, machine learning algorithms, data the platform offers consumers on-demand access to a
science models, data analytics comprising insightful wide range of your Company’s FMCG products across
visualisation tools and predictive analysis is being 45+ categories and over 900 products under one roof.
increasingly leveraged to enable speedy and accurate
The scale and diversity of your Company’s distribution
data capture, enable real-time informed decisions and
network continues to be a critical lever to enhance
aid in optimisation of trade inputs to enhance sales.
market presence, gain valuable insights into consumer
Self-service analytics tools are also being increasingly
& trade behaviour and provide speed and scale of
used to analyse data and present insights which are
execution for launches across geographies. In order to
digitally integrated into business decisions, resulting in
effectively leverage new routes-to-markets and meet
intelligent digitalisation of processes.
the assortment needs of emerging channels, your
The digitally powered eB2B platform of your Company, Company executed over 90 new product launches
UNNATI, has been rapidly scaled up during the across target markets besides extending distribution
year covering nearly 5.4 lakh outlets. UNNATI reach of several existing products in the portfolio.
facilitates sharp and direct engagement with retailers,
Several interventions were undertaken by TM&D
superior analytics, personalised recommendations
during the year to further improve operational
of hyperlocal baskets based on consumer purchase
effectiveness & productivity and create structural
insights, and deeper brand engagement.
competitive advantage. These include supply chain
In line with your Company’s credo of ‘Nation First: & network optimisation, smart buying including
Sab Saath Badhein’, TM&D has partnered with Open efficient freight procurement and delayering of
Network for Digital Commerce (ONDC) to help small operations through direct shipments to customers.
retailers ride the digitalisation wave. As a part of this During the year, your Company implemented an
industry-first initiative, your Company is assisting integrated planning and supply chain tool, which
traditional retailers to on-board the ONDC network is powered by AI/ML technology for inventory
and helping them have an omni-channel presence. optimisation and productivity enhancement. This
This intervention would enable such retailers to intervention is expected to enhance supply chain
‘ITC e-Store’, your Company’s exclusive D2C platform, is now operational

in 24,000+ pin-codes and continues to receive excellent consumer response.
Powered by state-of-the-art digital technology and robust fulfilment infrastructure,
the platform offers consumers on-demand access to a wide range of your Company’s
FMCG products across 45+ categories and over 900 products under one roof.

agility and efficiency, while also further improving GDP. While the global passenger traffic has recovered
market servicing. An IoT based solution has also to 68.5% of 2019 volumes in 2022, domestic air travel
been implemented which monitors stock movements in India has recovered at a faster pace to over 85%
on a real time basis resulting in improved vehicle of 2019 levels. However, foreign tourist arrivals in
turnaround time and enhanced customer service India, while improving over the previous year, remains
through data analytics. significantly below pre-pandemic levels.
TM&D’s distribution highway is a source of sustainable During the year, your Company’s Hotels Business
competitive advantage for your Company’s FMCG delivered competitively superior performance,
Businesses and is well-positioned to support the rapid on the back of enriched guest experiences,
scale up of operations in the ensuing years leveraging operational excellence and new growth opportunities.
its best-in-class systems and processes, an agile and The Business continued to focus on its strategy
responsive supply chain, and a synergistic relationship of offering a host of curated propositions across
with its channel partners. accommodation, dining and banqueting to augment
revenues across properties. This included introduction
HOTELS
of special packages offering distinct value propositions
The global Travel & Tourism industry, which had and flexibility, targeting short getaways/staycations,
been severely impacted in the last two years due revamped packages for the MICE & wedding
to the pandemic, witnessed strong rebound in the segments and extension of exclusive privileges to
current year. As per estimates of the World Travel and members of the Club ITC Loyalty programme.
Tourism Council (WTTC), the Travel & Tourism sector
is expected to contribute US$ 8.6 trillion to the global In the backdrop of a buoyant operating environment,
economy in 2022 (about 94% of pre-pandemic levels). Segment Revenue for the year doubled to ` 2585.03
As per estimates of the WTTC, the sector, which had crores while Segment EBITDA stood at ` 831.62
suffered 62 million job losses in 2020, has almost crores, as against ` 78.03 crores in the previous year.
recovered to pre-pandemic levels, with an estimated Segment PBIT for the year stood at ` 541.90 crores
40 million jobs having been added in 2022 on top of representing a positive swing of ` 724.99 crores over
the 18 million jobs which were added in 2021. the previous year.
The Travel & Tourism sector plays a vital role in the Your Company’s Hotels Business continues to
Indian economy and holds immense potential for leverage its ‘asset-right’ strategy to be amongst
growth. The extensive tourism value chain spanning the fastest growing hospitality chains in the country
hotels, travel agents, airlines, tour operators, with over 120 properties and 11,500 rooms under
restaurants, tourist transporters and guides, etc. distinguished and distinctive brands – ‘ITC Hotels’ in
results in a huge economic multiplier impact, ranking the Luxury segment, ‘Welcomhotel’ in the Premium
it amongst the highest across industries on this count. segment, ‘Fortune’ in the Mid-market to Upscale
The sector’s contribution to the Indian economy segment and ‘WelcomHeritage’ in the Leisure &
remains significant and is estimated at appx. 7% of Heritage segment.
Your Company’s Hotels Business continues to leverage its ‘asset-right’ strategy

to be amongst the fastest growing hospitality chains in the country with over
120 properties and 11,500 rooms under distinguished and distinctive brands –
‘ITC Hotels’ in the Luxury segment, ‘Welcomhotel’ in the Premium segment,
‘Fortune’ in the Mid-market to Upscale segment and ‘WelcomHeritage’
in the Leisure & Heritage segment.

Further expanding its footprint, the Business had to be onboarded under the management contract
launched two new brands in the previous year - route, the brand is well positioned to scale up
‘Mementos’ in the Luxury Lifestyle segment and ‘Storii’ rapidly in line with the ‘asset-right’ growth strategy
in the Premium segment, targeting new age travellers of the Business.
looking for varied experiences. The ‘Fortune’ brand continues to maintain its
During the year, 12 new properties were added to the pre-eminent position in the Mid-market to Upscale
Group portfolio, including: segment, with a positioning of ‘First class, full service
hotels – an affordable alternative’, comprising
– ITC Narmada at Ahmedabad (Gujarat’s first LEED
43 operating properties and over 3,300 rooms.
Platinum rated hotel), offering 291 guest rooms
The ‘WelcomHeritage’ brand continues to create
and suites, which draws inspiration from the river
best-in-class authentic experiences with an operational
Narmada along with the iconic architecture, vibrant
inventory of 36 hotels comprising over 950 rooms.
culture and grandeur of Gujarat.
With a strong pipeline of properties under the
– Ekaaya Udaipur (managed property), located
management contract route, the Business’s distinctive
amidst the Aravali hills, with 117 suites under
brands are well poised for rapid scale up, in line with
‘Mementos by ITC Hotels’.
its ‘asset-right’ growth strategy.
– Storii Shanti Morada at Goa (managed property),
‘Responsible Luxury’ continues to guide business
offering 20 well-appointed guest rooms,
best practices in line with the ‘Triple Bottom Line’
representing a varied confluence of Portuguese
philosophy of your Company. The Business has the
and Indian culture.
highest number of hotels in the world to have been
– Storii Amoha Retreat at Dharamshala (managed awarded the LEED Platinum Certification by USGBC,
property), offering 37 guest rooms and suites; built with 22 of its hotels achieving this feat. Furthering your
using sustainable and locally sourced materials. Company’s Responsible Luxury ethos, 12 of its iconic
hotels have received LEED Zero Carbon Certification,
– Welcomhotel Jim Corbett in Uttarakhand (64-key
the first in the world to have received the same.
managed property), offering a premium experience
ITC Mughal became the first hotel globally to be
nestled in close proximity to the picturesque Jim
awarded the LEED Zero Water Certification by the
Corbett National Park.
USGBC, followed by ITC Sonar, which is the second
– Welcomhotel Ahmedabad (129-key managed hotel to be awarded the certification globally.
property), a premium boutique property offering
Going forward, the Business has plans to further
signature dining experience and expansive
enhance the renewable energy portfolio, increase
banqueting.
the number of LEED Zero Carbon Certifications, and
All of these properties have received excellent reduce carbon emission levels.
response from guests within a short span of time.
ITC Hotels was recognised as the best Luxury Hotel
The Welcomhotel brand now consists of 24 hotels and Chain for the 4th consecutive year at ‘Travel + Leisure
over 2,600 keys. With a strong pipeline of properties India’s Best Awards 2022’. In the premium segment,
Your Company’s Hotels Business, with its ethos of ‘Responsible Luxury’

scaled new heights with 12 of its iconic hotels being the first in the world
to receive the LEED Zero Carbon Certification; while 2 hotels became
the first in the world to be awarded the LEED Zero Water Certification.

the Welcomhotel brand continues to strengthen delectable dishes from humble ingredients and ensuring
its equity with its characteristic positioning of every meal is an aromatic celebration par excellence.
‘Enriching Experiences’.
The Business continues to enhance its
Leveraging its expertise and experience in the domain award-winning repertoire of culinary brands.
of sleep, the Business had recently launched its In alignment with the Government’s initiative of
signature ‘Sleeep’ Boutiques across the country, promoting millets and in keeping with its ethos of
offering a wide range of premium home bedding producing sustainable cuisine, the Business has
products with both online and offline retail options. also created a range of millet-based gourmet cuisine
These boutiques, present across seven ITC Hotels, across its signature restaurants. Further, it is also
have received encouraging response and plans are promoting easy-to-try recipes with millets to help
on the anvil to scale up operations going forward. encourage individuals experiment with the taste and
texture of millets.
The world-class ambience of your Company’s luxury
hotels continues to be leveraged for gourmet luxury Over the years, your Company has expanded its
chocolates under the Fabelle brand with exclusive footprint in the Luxury and Upper Upscale segments
boutiques across nine ITC Hotels and kiosks at of the Indian hospitality industry. Your Company’s
four Welcomhotels. ‘asset-right’ strategy envisages a substantial part of
incremental room additions, going forward, to accrue
Digital investments continue to be leveraged
through management contracts. The Business is
towards enhancing guest experience, facilitating
witnessing growing interest amongst property owners
guest acquisition, augmenting revenue generation
to partner with its iconic brands resulting in healthy
and driving operational efficiency. During the year,
generation of leads and pipeline of management
the Business continued to promote its full stack
contracts. The Business is confident of rapidly scaling
ITC Hotels App for Food Delivery, Room & Table
up revenues through this route going forward.
Reservations, Loyalty Benefits, Exclusive Offers and
more. The App has also been enhanced with room As reported earlier, your Company remains committed
automation and entertainment control module, which to implement its ‘asset-right’ strategy, focus on
has been rolled out in select hotels. sweating existing assets, create additional revenue
streams and pursue alternate structures in view of the
ITC Hotels is recognised for its award-winning culinary
strong industry recovery witnessed during the year
excellence, with illustrious brands, dishes and concepts
towards engendering the next horizon of growth as
revolving around indigenous ingredients and signature
also enhancing value creation.
dining experiences. From bringing alive local flavours,
inspired by the ever-changing seasons, cultures With its highest standards of hygiene and safety,
and age-old traditions, the Business has been at the portfolio of world-class properties, iconic cuisine
forefront of presenting gastronomical delights to food brands and best-in-class service levels anchored on
connoisseurs for decades. Sourcing local ingredients the ethos of ‘Responsible Luxury’, your Company is
and using time-honoured techniques, the Business well placed to sustain its pre-eminent position in the
continues to remain ahead of peers in creating Indian hospitality industry.
ITC Hotels is recognised for its award-winning culinary excellence,

with illustrious brands, dishes and concepts revolving around indigenous
ingredients and signature dining experiences. The Hotels Business has also
created a range of millet-based gourmet cuisine across its signature restaurants.

PAPERBOARDS, PAPER AND PACKAGING The Business fortified its clear leadership in the
Value Added Paperboard (VAP) segment through
Paperboards & Specialty Papers innovation focused on developing customised
The demand for Paper & Paperboards grew at about solutions for end-use industries and maintaining
6-7% in FY 2022-23 driven by robust growth across best-in-class customer service levels. The Business
most end-user segments. Sequential moderation was is also the industry leader in the eco-labelled
witnessed during the second half of the year, primarily products segment as well as the premium recycled
due to inventory pipeline adjustments by export paperboards space.
customers and relatively lower offtake by domestic The Business continues to ramp up its sustainable
customers towards the end of the year. Cost of key products portfolio and achieved appx. two-fold
inputs remained elevated with global pulp prices increase in revenue over the previous year.
witnessing unprecedented highs during the first half of The ‘Filo’ series of sustainable solutions viz. ‘FiloBev’
the year on account of global supply chain disruptions, (for cups), ‘FiloServe’ (for QSR, bakeries, food retail) &
geopolitical tensions, adverse weather events, higher ‘FiloPack’ (packaging for sweets and deep freeze
power and chemical costs. However, pulp prices applications), continued to witness strong traction
moderated in the second half of the year due to in both domestic and international markets. The
subdued Chinese demand, recessionary conditions in ‘Omega’ series viz. ‘OmegaBev’ and ‘OmegaBev
Europe and progressive normalisation in supply chain Vio’, certified compostable by Central Institute of
operations. Chemical prices, which were also at record Petrochemicals Engineering & Technology (CIPET)
highs, moderated towards the end of the financial year, and also registered with the Central Pollution Control
while remaining elevated over pre-pandemic levels. Board (CPCB), continued to increase its franchise
Coal supplies were adversely impacted by supply with large eco-conscious brands. The Business is
chain disruptions and prioritisation of domestic supplies stepping up investments in this fast-evolving space
to thermal power plants. The Indian Rupee depreciated which holds immense growth potential, supported
against the US Dollar during the year which further by the R&D capabilities of your Company’s Life
impacted cost of imports. Sciences & Technology Centre and through external
Amidst heightened inflationary pressures, the collaborations with global specialists.
Business delivered robust performance during the During the year, your Company set up a wholly owned
year leveraging its integrated business model and subsidiary, ITC Fibre Innovations Limited, to foray into
strong end-user engagements. Structural interventions the fast-growing premium Moulded Fibre Products
across the value chain including, inter alia, (MFP) space. Towards this end, construction of a
developing high yielding clones, augmenting value state-of-the-art MFP manufacturing facility in
added paperboard & in-house pulp manufacturing Badiyakhedi, Madhya Pradesh, is underway.
capacity, product & process innovation, digital Customers are increasingly seeking solutions that
interventions including Industry 4.0 and creating are bio-degradable, substitute single use plastic
superior distribution infrastructure continue to provide and meet stakeholder and regulatory expectations
the Business sustainable competitive advantages. across industries including food serving and
The Paperboards & Specialty Papers Business fortified its clear leadership in
the Value Added Paperboard (VAP) segment through innovation focused on
developing customised solutions for end-use industries and maintaining
best-in-class customer service levels. The Business is also
the industry leader in the eco-labelled products segment
as well as the premium recycled paperboards space.

delivery, pharmaceutical, beauty and electronics. upon a comprehensive Digital Transformation

The raw materials for such products are sourced Programme across the vectors of manufacturing,
from environment-friendly, renewable, natural fibres supply chain and support services to achieve operational
such as wood, bamboo etc. The MFP business excellence and drive improvement in profitability.
will leverage your Company’s expertise in fibre
Your Company is a pioneer in the adoption of Industry
value chain, manufacturing excellence and strong
4.0 in the Indian Paper & Paperboard industry. Digital
sustainability credentials to rapidly scale up business
and emergent technologies continue to be leveraged
going forward.
towards enhancing operational efficiency, reducing
During the year, the Business delivered robust wastages, enabling cost optimisation and improving
performance in the Specialty Papers segment. safety across the value chain. The multi-dimensional
Market standing continues to be driven by product digital interventions encompass Industrial IoT for
mix enrichment and diversification of the customer Smart Operations, Integrated Data Platform, AI/ML
base. The domestic industry continues to remain algorithms for optimisation in the manufacturing
under pressure on account of cheap imports from process, AI/ML based image analytics and IoT based
China. Anti-dumping duty on Décor paper continues crop monitoring & advisory, computer vision-based
to provide a level playing field for domestic industry, solutions to improve workforce safety. The Business
further enhance ‘Make in India’ opportunities & foster also embarked on collaborating with leading online
domestic value chains and enable import substitution. training platforms to upskill managers across business
A strong distribution network, efficient supply chain functions in new age digital tools and technologies.
and customised product portfolio leveraging The Business continues to collaborate with partners
cutting-edge innovation capabilities based on superior from the start-up ecosystem, as well as established
customer insights, provide structural competitive solution providers, in building scalable solutions that
advantages to the Business to further consolidate its are custom-fit to business requirements. Over 100 use
market standing in the fast growing Décor segment. cases have already been developed and implemented
The Business continues to make structural across multiple spheres of the Business, aiding in
interventions to reduce dependence on imported pulp, margin expansion.
enabling substantial reduction in operating costs. Your Company continues to procure its wood
Significant increase in in-house pulp production was requirements from sustainable sources. Research
achieved through strategic interventions, Industry 4.0 on clonal development has resulted in introduction
initiatives and improved wood mix. Capacity utilisation of high-yielding and disease-resistant clones that are
of the chemical pulp mill at the Bhadrachalam unit adaptable to a wide variety of agro-climatic conditions
touched a record high during the year. which aid in increasing farmer income whilst securing
The Business has been practising the principles greater consistency in earnings. In this context, your
of Total Productive Maintenance (TPM), Lean and Company’s Life Sciences & Technology Centre
Six Sigma for over a decade and continues to reap is engaged in developing higher yielding second
substantial benefits through its Business Excellence generation clones with enhanced pest and disease
initiatives. In recent years, the Business has embarked resistant attributes.
Your Company is a pioneer in the adoption of Industry 4.0

in the Indian Paper & Paperboard industry. Digital and emergent technologies
continue to be leveraged towards enhancing operational efficiency, reducing wastages,
enabling cost optimisation and improving safety across the value chain.

Your Company has the distinction of being the first The Kovai unit has also been rated GreenCo
in India to have obtained the Forest Stewardship Platinum+ by CII. The unit is the first site in India
Council-Forest Management (FSC®-FM) certification, and the first paper mill in the world to achieve
which confirms compliance with the highest the highest platinum rating under the ‘Alliance for
international benchmarks of plantation management Water Stewardship Standards’. Bhadrachalam and
across the dimensions of environmental responsibility, Kovai mills won awards for Excellence in Energy
social benefit and economic viability. Till date, your Management at the ‘23rd National Awards’ for
Company has received FSC®-FM certification for ‘Excellence in Energy Management’ in the
close to 1.5 lakh acres of plantations involving over Pulp & Paper sector. The Bhadrachalam unit was
25000 farmers. During the year, nearly 4.3 lakh tonnes rated as the Winner in ‘Within the Fence’ category
of FSC®-certified wood was procured from these under CII-National awards for Water management.
certified plantations. Your Company sustained its
position as the leading supplier of FSC®-certified The Business continues to strengthen its safety
paper and paperboards in India. management processes, adopt globally recognised
best practices and ensure that facilities are designed,
Initiatives such as bund plantation and scaling up
constructed, operated and maintained in an inherently
plantations in new catchment areas in Odisha and
safe manner. Your Company continues to deploy
Chhattisgarh have enabled procurement of more than
various measures viz. use of Data Analytics Tools to
10,000 MT of wood from these areas, with further
identify risk prone areas for proactive mitigation of
potential for increasing cost-effective access to fibre in
incidents, video analytics etc.
the future.
In line with the objective of enhancing the share of
All manufacturing units of the Business continue to
renewable energy in its operations, the Business has
recycle nearly 100% of the solid waste generated
implemented several initiatives including investments
during operations by converting the same into lime,
in a green boiler, high pressure & efficiency circulating
fly ash bricks, cement, grey boards, egg trays etc.
In addition, the Business recycled around 1.1 lakh fluidised bed boiler, solar & wind energy and
tonnes of waste paper during the year, thereby increased usage of bio-fuel. With these initiatives,
sustaining your Company’s positive solid waste renewable sources presently account for appx. 44%
recycling footprint. of total energy consumed at the four manufacturing
units.
The manufacturing facilities at Bhadrachalam, Kovai,
Tribeni and Bollaram continue to receive industry Augmentation of the Bleached Chemical Thermo
recognition for their green credentials and safety Mechanical pulp production facility has been
standards in line with your Company’s focus on completed during the year. The project for augmenting
sustainable business practices. The Bhadrachalam chemical pulp capacity is also nearing completion.
unit is the first pulp & paper plant and the second in These initiatives will further enhance substitution of
the country overall, to be rated ‘GreenCo Platinum+’ imported pulp, enhance support to Indian farmers
by CII, as part of the Green Company rating system. and enable reduction in operating costs. The recently
The recently commissioned state-of-the-art and future-ready

High-Pressure Recovery Boiler at the Bhadrachalam mill is progressively
enhancing energy efficiency and reducing the carbon footprint of the unit’s
operations by significantly lowering coal consumption by appx. 25%.

commissioned state-of-the-art and future-ready High- Packaging and Printing

Pressure Recovery Boiler at the Bhadrachalam mill
Your Company’s Packaging and Printing Business
is progressively enhancing energy efficiency and
is a leading provider of superior value-added
reducing the carbon footprint of the unit’s operations
packaging solutions leveraging its comprehensive
by significantly lowering coal consumption by
capability-set spanning multiple technology platforms
appx. 25%. These investments are a testament to
coupled with in-house cylinder making and blown
your Company’s commitment towards embedding
film manufacturing lines. The Business caters to the
sustainability in its operations and supporting the
packaging requirements of leading players across
‘Make in India’ initiative.
several industry segments viz. Food & Beverage,
Going forward, paperboards demand is expected Personal Care, Home Care, Footwear, Consumer
to be driven by end-user segments such as Electronics, QSR, Pharma, Liquor and Tobacco. It
pharmaceuticals, apparels, FMCG, consumer also provides strategic support to your Company’s
durables and e-Commerce. Writing & Printing paper FMCG and Cigarettes Businesses by facilitating
demand is also expected to remain firm on the back of faster turnaround for new launches, providing
demand from the publishing and notebooks industries innovative packaging solutions, facilitating packaging
driven by the Government’s thrust on primary and changes, ensuring security of supplies and delivering
secondary education. benchmarked international quality at competitive cost.
The integrated nature of your Company’s business The year under review remained challenging for
model - comprising access to high-quality, cost the Business due to unprecedented inflation in
competitive and renewable fibre supply chain, commodity prices. Notwithstanding the challenging
in-house pulp manufacturing capability, imported operating environment, the Business remained
pulp substitution, world-class product quality, resilient and registered robust growth in domestic and
state-of-the-art manufacturing facilities, increasing exports businesses.
usage of data analytics and Industry 4.0 technologies
Amidst heightened competitive intensity and sluggish
along with robust forward linkages with the
economic conditions, the Business has been
Education and Stationery Products Business and
aggressively pursuing new business development
the Packaging and Printing Business - is a key
opportunities across segments and has acquired
source of competitive advantage for your Company’s
several key accounts during the year.
Paperboards & Specialty Papers Business. Your
Company is confident of further consolidating The Business continues to craft innovative packaging
its leadership position in the Indian Paper and solutions leveraging its deep understanding of end-user
Paperboards industry leveraging recent investments needs and the capabilities of your Company’s Life
in innovation platforms anchored on the development Sciences and Technology Centre. Recognising the
of sustainable products and cutting-edge digital need for sustainable packaging and the emerging
technologies to set new benchmarks in customer demand for plastic substitutes, the Business continues
satisfaction, operational excellence and sustainability. to leverage its flagship ‘InnovPack’ campaign and
Your Company’s Packaging and Printing Business is a leading

provider of superior value-added packaging solutions leveraging
its comprehensive capability-set spanning multiple technology platforms
coupled with in-house cylinder making and blown film manufacturing lines.

is focusing on end-use segments with potential for awards, IFCA Star awards and SIES SOP
rapid adoption of sustainable packaging and plastic Star awards for its excellence in packaging under
substitution solutions. Along with a steady pipeline various categories including sustainability and
of pioneering solutions anchored on molecular eco-friendly packaging.
science research such as ‘Bioseal’ (compostable
To cater to its growing customer base in Western
packaging solution), ‘Oxyblock’ (recyclable coating
region and to further improve customer service
solution to enhance barrier properties in packaging)
levels, the Business has commissioned a greenfield
and ‘Germ free coating’ (solution for microbial
manufacturing plant in Nadiad, Gujarat with
free packaging surface addressing the consumer
state-of-the-art equipment for the Cartons packaging
consciousness towards hygiene and safety), the
platform. Capacity utilisation at the facility is expected
Business has also pioneered several innovative
to be progressively scaled up going forward.
solutions towards ‘Reducing, Reusing and Recycling’
of plastic substrates which are under various stages All four units of the Business are certified as per the
of commercialisation. Going forward, the Business will Integrated Management System, consisting of ISO
continue to invest resources to develop sustainable 9001:2015, ISO 14001:2015 and ISO 45001:2018.
packaging solutions. The cartons packaging lines in both the Tiruvottiyur
and Haridwar units received the ‘Grade A’ and the
The Business continues to be acknowledged as a
Nadiad unit received ‘Grade AA’ Brand Reputation
‘first choice packaging partner’ by several reputed
Compliance Global Standards (BRCGS) certification,
FMCG companies in the country for providing superior
for global standards in packaging and packaging
and cost-effective packaging solutions across areas
materials - a key enabler for supplies to the packaged
such as sustainable packaging, superior structural
foods industry. The Tiruvottiyur unit received the Gold
design and enhanced security features. The Business
Award for Excellence in EHS from CII.
continues to deploy several operational excellence
tools along with focused interventions in the The Packaging and Printing Business of your
areas of efficiency improvement, waste reduction, Company has established itself as a one-stop
quality improvement and employee skill building. packaging solutions provider, offering a wide range
The Business also continues to be amongst the top of innovative products to cater to the evolving
ranked global packaging companies on productivity requirements of customers across industries. With
parameters as per the latest International Packaging world-class technology across a diverse range of
Group and International Flexibles Packaging Network packaging platforms, innovative sustainable packaging
rankings. During the year, the Business received solutions, best-in-class quality management systems,
global recognition and was adjudged winner at the focused investments in skill development and a
prestigious WorldStar Global Packaging Awards distributed manufacturing footprint, the Business is
(two awards for pack premiumisation and three for well positioned to grow its marquee customer base
sustainability) and also won nearly 50 national level while continuing to service the requirements of your
awards such as the IndiaStar awards, Printweek Company’s FMCG Businesses.
Recognising the need for sustainable packaging and the emerging demand for plastic
substitutes, the Business continues to leverage its flagship ‘InnovPack’ campaign.
Along with a steady pipeline of pioneering solutions anchored on molecular science
research such as ‘Bioseal’, ‘Oxyblock’ and ‘Germ free coating’, the Business has also
pioneered several innovative solutions towards ‘Reducing, Reusing and Recycling’ of
plastic substrates which are under various stages of commercialisation.

AGRI BUSINESS Green Leaf Threshing plants (GLT) at Anaparti,

Chirala and Mysuru towards delivering world-class
Leaf Tobacco quality and upgrading processing technology. The
Flue Cured Virginia (FCV) tobacco production in energy needs of all three GLTs are substantially met
2022 largely remained at similar levels as that of from renewable sources in line with your Company’s
the previous year with weather conditions adversely philosophy of adopting a low-carbon growth path.
impacting crop output in certain origins. The trend of The Business remains committed to highest standards
global customers increasing the share of sourcing of EHS (Environment, Health, Safety) & Quality and
requirement from suppliers with higher order continues to win recognition in these areas. During
sustainability credentials gained further momentum the year, the Business received an award for ‘Most
during the year. This, coupled with lower FCV supplies Innovative Best Practices’ from CII and Platinum
from major supply origins such as Brazil provided award for ‘Systematic and Sustainable Energy
an opportunity to enhance share in exports which was Performance’ from Society of Energy Engineers
effectively leveraged by your Company to register and Managers (SEEM). In addition, the Business
robust growth in exports. received various awards at events organised
by the Quality Circle Forum of India and CII for
The Business continued to leverage its crop
operational excellence.
development expertise, superior product quality,
world-class processing facilities and strong Strategic cost management across the value chain
sustainability credentials to strengthen its position continues to be a key focus area for the Business.
as a reliable supply chain partner for global The AI/ML powered real-time buying platform
customers. Deeper farmer & customer engagement, continues to be scaled up to facilitate efficient leaf
operational agility and supply chain efficiency tobacco buying across auction platforms. Several
enabled the Business to deliver enhanced value initiatives implemented in recent years have led
to existing customers and consolidate its to improved operating efficiencies in processing
pre-eminent position as the largest Indian exporter of facilities and the supply chain.
unmanufactured tobacco. Synergistic R&D initiatives with focus on varietal
development, climate smart farming techniques
The Business continues to make focused investments
and usage of water efficient technologies are being
across the tobacco value chain anchored on the key
scaled up towards enhancing productivity & product
vectors of Quality, Consistency, Compliance and
quality, reducing cultivation costs and strengthening
Sustainability. Crop and region-specific agronomic
resilience of the value chain. The Business enabled
practices continue to be deployed to cater to the
farmers to successfully implement integrated
emerging preferences of customers.
energy management initiatives spanning energy
The Business continues to set benchmarks in leaf conservation, increasing alternative fuel usage and
threshing operations through focused initiatives energy plantations, towards achieving fuel
and innovative technological & digital solutions. self-sufficiency in the curing process of FCV.
Investments continue to be made in your Company’s In addition to these initiatives, your Company is
The Leaf Tobacco Business consolidated its pre-eminent position as the

largest Indian exporter of unmanufactured tobacco. The Business continued to
leverage its crop development expertise, superior product quality, world-class
processing facilities and strong sustainability credentials to strengthen
its position as a reliable supply chain partner for global customers.

taking up integrated watershed management R&D capability, sustainability leadership, unique crop
programmes to ensure availability of water for development & extension expertise, state-of-the-art
irrigation during critical phases of the crop cycle. processing facilities and deep understanding of
A punitive and discriminatory taxation and regulatory customer & farmer needs, your Company is well
regime on cigarettes, apart from providing a fillip positioned to meet the current and emerging
to illicit trade and severely impacting the domestic requirements of global customers and sustain its
legal cigarette industry, has also adversely impacted position as a world-class leaf tobacco organisation.
demand for the leaf tobacco crop grown in India
Other Agri Commodities
over the years leading, inter alia, to severe stress
on farmer earnings. Illicit cigarettes also continue to The operating environment was rendered challenging
impact leaf tobacco trade as these products do not during the year against the backdrop of severe
use Indian tobacco. Accordingly, a more balanced inflationary headwinds and concerns of food security
regulatory and taxation regime that cognises for the that emerged due to geopolitical tensions and erratic
unique tobacco consumption pattern prevalent in weather patterns.
India and the economic realities of the country is the
Notwithstanding the challenging operating
need of the hour to support the Indian tobacco farmer
environment, the Business leveraged market
and the 46 million livelihoods dependent on tobacco.
opportunities to deliver robust performance during
Lower export incentives in India and high import
the year. This was achieved on the back of your
duty levied in several markets, including the USA
Company’s strong farm linkages and sourcing
and Europe, have weighed on the competitiveness
of Indian leaf tobacco exports. Restoring export networks, multi-modal logistics capability, agile
incentives to earlier levels and necessary policy supply chain operations, focused scale up of
support to alleviate trade barriers would go a Value-Added Agri Products (VAAP) portfolio and
long way in enhancing the competitiveness of deep customer relationships.
unmanufactured tobacco exports from India and The scope and scale of operations of your Company’s
contribute to increasing farmer earnings. Your Agri Business have grown manifold over the years
Company continues to engage with policy makers and currently encompass over 4.5 million tonnes
on these matters. The recent stability in the taxation of annual volume throughput in 22 states and over
and regulatory regime on cigarettes has enabled 20 agri-value chains. The strategic focus of the
engendering domestic demand for Indian tobaccos, Business in recent years has been to accelerate
while also enhancing farmer incomes. growth by rapidly developing and scaling up VAAP
Going forward, the Business will continue to provide straddling multiple value chains comprising Spices,
strategic sourcing support to your Company’s Coffee, Frozen Marine Products and Processed Fruits
Cigarettes Business and consolidate its leadership amongst others. The portfolio continues to be rapidly
position as a major exporter of quality Indian tobacco scaled up, leveraging your Company’s deep rural
thereby catalysing the multiplier impact of increased linkages and extensive sourcing expertise enabling
farmer incomes on the rural economy. With its strong traceable, attribute based and identity-preserved
Your Company’s Agri Business has grown manifold over the years and currently
encompass over 4.5 million tonnes of annual volume throughput in 22 states and
over 20 agri-value chains. In recent years, the strategic focus has been
to accelerate growth by rapidly developing and scaling up Value-Added
Agri Products straddling multiple value chains comprising Spices, Coffee,
Frozen Marine Products and Processed Fruits amongst others.

sourcing of agri-commodities, besides value addition – During the year, Coffee prices remained volatile
through processing. in the international markets due to supply
uncertainties in Brazil & Vietnam and muted
– Your Company is a leading player in whole
demand in Europe due to recessionary trends.
spices such as Chilli, Turmeric, Coriander and
In the domestic market, lower availability of
Cumin. In line with its strategy of enhancing
the crop led to high prices impacting demand.
value addition and ‘producing the buy’,
Notwithstanding these challenges, the Business
the Business has, in recent years, scaled up its
registered strong growth leveraging its strategic
presence in ‘food safe’ markets viz. USA, EU
presence in key coffee producing regions in
and Japan, leveraging its key strengths such
India, deep understanding of estate and
as identity-preserved sourcing expertise, strong
region-specific varieties and focus on premium
backward integration, custody of supply chain and
grades of Arabica, Certified Coffees, Specialty and
customer focused strategies. During the year, the
Monsooned Coffee. Apart from servicing the needs
Business consolidated its position as a preferred
of leading coffee houses in the value-added space,
supplier in the food safe segment, private labels,
the Business continues to source high quality
steam sterilised and organic products. Addition of
coffee grades customised to the needs of your
new export customers, improved product mix
Company’s gourmet coffee brand, ‘Sunbean’.
and higher offtake from large format players in
modern retail and e-Commerce segments aided – Your Company is one of the leading exporters
growth. The Business scaled up its Integrated of value-added frozen marine products from
Crop Management (ICM) programme, thereby India with expertise in processing individually
enhancing its ability to produce food safe spices in quick-frozen (IQF), raw and cooked products,
a sustainable manner. The Business continues to which adhere to the highest standards of safety
partner with the various State Governments and hygiene prevalent in developed markets
for production of food safe spices and has such as the US, EU and Japan. During the year,
maintained an unblemished track record over the Business expanded its value-added shrimp
the years in terms of compliance with stringent portfolio to include Aquaculture Stewardship
food safety parameters. The Business continues Council (ASC) certified products for EU markets.
to pursue sustainable farm management practices Leveraging its strong domain knowledge and
anchored on Rainforest Alliance and Global GAP sourcing expertise, the Business also supports
accreditation. the ‘ITC Master Chef’ range of ‘Super Safe’ frozen
prawns in the domestic market and supplies
In this context, during the year, your Company
high-quality shrimps to your Company’s Hotels
has commissioned a world-class, state-of-the-art
Business.
Spices processing facility in Andhra Pradesh.
This facility, compliant with Global Food Safety – In the Processed Fruits & Vegetables segment,
standards, will enable your Company in expanding the Business continues to expand its footprint in
its customer base in food safe export markets, categories of fruit pulp and tomato paste across
besides promoting inclusive spices value chains conventional and certified segments through a
benefiting thousands of Indian farmers. robust collaborative network comprising a large
Your Company has commissioned a world-class,

state-of-the-art Spices processing facility in Andhra Pradesh compliant
with Global Food Safety standards. This will enable your Company in expanding
its customer base in food safe export markets, besides promoting inclusive
spices value chains benefiting thousands of Indian farmers.

number of small and marginal farmers across wide range of advisory services covering weather
four states. forecasts, agronomy, best practices for improved
productivity, quality assurance, etc. The Business
The Business remains focused on expanding
expects to rapidly scale up the initiative to create
its scope of operations across identified agri
commodities, including both fresh and processed a unique platform providing significant competitive
products. As these businesses develop critical mass, advantage to your Company’s Agri Business as also
the Business is also scaling up end-to-end presence creating new revenue streams.
across the value chain, supported by the R&D Over the years, your Company has invested
capabilities of your Company’s Life Sciences and significantly in building competitively superior
Technology Centre and external collaborations. agri-commodity sourcing expertise comprising multiple
The Business is also scaling up its customised crop business models, wide geographical spread and
development programme in Madhya Pradesh to customised infrastructure. Rapid adoption of
build deeper expertise in Medicinal and Aromatic analytics-led smart procurement tools has further
Plant Extracts (MAPE). Collaborations with farmers augmented the aforestated expertise. These
are underway with the Business providing necessary capabilities and infrastructure have created structural
inputs, advisory and on-field support. The Business advantages facilitating competitive sourcing of
is also focusing on developing unique value-added agri raw materials for your Company’s Branded
products by leveraging the research platforms of your Packaged Foods Businesses.
Company’s Life Sciences and Technology Centre. – The Business continues to leverage its strong
Towards enhancing the competitiveness of farm linkages and wide sourcing network across
domestic agri-value chains, strengthening market geographies to secure supplies of critical grades
linkages and further augmenting value creation of wheat of benchmark quality towards meeting
opportunities, your Company has successfully the growing requirements of Aashirvaad atta.
scaled up ITCMAARS – a crop-agnostic full During the year, the Business further scaled up its
stack AgriTech platform, together with a ‘phygital’ strategic sourcing and supply chain interventions.
ecosystem across nine states. Over 1150 Farmer These include focused crop development towards
Producer Organisations (FPOs) encompassing securing the right varieties for Aashirvaad atta to
more than 5,00,000 farmers have been added to provide consumers best-in-class product quality
your Company’s network within a short period since and experience, use of multi-modal transportation,
launch. By synergistically integrating NextGen cost optimisation through geographical and varietal
agri technologies, this initiative is creating a robust arbitrage as also enabling supply of attribute
ecosystem to seamlessly deliver hyperlocal and based/identity preserved crop. The Business also
personalised solutions to the farming community, ramped up direct buying at various atta factories
whilst creating new and scalable revenue streams, and scaled up utilisation of railway rakes for wheat
strengthening sourcing efficiencies and powering your transportation, which aided in containing the impact
Company’s world-class Indian brands. These include of inflation in freight costs. At the Kapurthala
an e-Marketplace for agri inputs and farm outputs, ICML plant, for instance, direct buying of wheat
Your Company has successfully scaled up ITCMAARS (Metamarket for Advanced

Agriculture and Rural Services) – a crop-agnostic full stack AgriTech platform,
together with a ‘phygital’ ecosystem across nine states with over
1150 Farmer Producer Organisations (FPOs). More than
5,00,000 farmers have been added to your Company’s
network within a short period.

offers substantial benefits to farmers including in Data and Analytics’ by ET Ascent and has also
transparency in grading, weighment and pricing, received recognition for its excellence under the
besides delayering operations and enhancing Food, Perishables, Beverages & FMCG category
sourcing & logistics efficiencies. This initiative is by the CII SCALE Awards, 2022.
being scaled up through focused crop development
The Business continues to collaborate with reputed
in the area to upgrade crop quality.
research organisations such as the Indian Agricultural
– The Business continues to leverage its strong Research Institute, Indian Institute of Wheat & Barley
backward linkages and wide sourcing network Research, Indian Institute of Rice Research, Indian
across geographies to source high-quality fruit pulp Institute of Soybean Research, Indian Institute of
and frozen vegetables for your Company’s Vegetable Research, Punjab Agricultural University
‘B Natural’ and ‘Farmland’ brands. and Agharkar Research Institute towards building an
efficient and cost competitive agri-value chain. During
– Milk procurement network in Bihar and West
the year, the Business further scaled up its wheat crop
Bengal was strengthened during the year towards
development programme and introduced
meeting the growing requirements of your
location-specific new and superior seed varieties
Company’s Fresh Dairy portfolio under the
along with appropriate package of practices across
‘Aashirvaad Svasti’ brand, and in Punjab for
Rajasthan, Uttar Pradesh, Bihar, West Bengal,
‘Sunfeast’ Dairy Beverages. The Business
Punjab, Madhya Pradesh and Maharashtra. Sharp
continues to empower farmers by providing
focus on deepening capabilities in proprietary crop
infrastructure such as automated milk collection
intelligence, scaling up the sourcing & delivery
units & chillers and imparting package of best
network and developing customised blends will
practices to improve operational efficiency, maintain
support your Company’s Branded Packaged Foods
high quality and ensure identity preservation
Businesses in the years to come.
and traceability. The capability to source
superior quality milk has enabled the scale-up As stated earlier, in line with your Company’s
of ‘Aashirvaad Svasti Easy Digest Milk’ – West commitment to empower farmers, your Company has
Bengal’s first lactose free milk in pouch format and developed a millets agri-value chain with special thrust
‘Sunfeast Protein Shake’ in the Fresh Dairy and on enhancing value-addition and market linkages.
Beverages categories respectively. Your Company is also promoting FPOs in millet
farming anchored by ITCMAARS. The Business
– The Business continues to scale up sourcing
has implemented two Public-Private Partnerships
of spices to meet the growing requirements of
projects in Maharashtra and Andhra Pradesh,
Sunrise and Aashirvaad brands.
in partnership with Indian Institute of Millets Research
In recognition of the various initiatives undertaken (IIMR), Hyderabad. Your Company remains
by the Business to enable an agile, resilient and committed to supporting the Government’s efforts to
responsive sourcing and supply chain, your Company promote millets given their immense benefits in terms
was recognised as the ‘Logistics and Supply Chain of nutritional properties and attributes as a planet
Innovation Company of the Year’ and ‘Best Innovator friendly and climate resilient crop.
In line with your Company’s commitment to empower farmers, a millets agri-value

chain has been developed with special thrust on enhancing value-addition and
market linkages. Your Company is also promoting FPOs in millet farming anchored
by ITCMAARS. The Business has implemented two Public-Private Partnerships
projects in Maharashtra and Andhra Pradesh, in partnership with Indian Institute
of Millets Research (IIMR), Hyderabad. Your Company remains committed
to supporting the Government’s efforts to promote millets.

Your Company remains focused on developing Surya Nepal Private Limited

climate smart agriculture systems which address
The Nepalese economy grew by 5.6% during the
the environmental and social impacts of climate
fiscal year ended July 2022, as against a growth of
change, enhance the resilience of agri-value chains,
4.8% in the previous year. However, surging inflation
enable higher productivity and boost farmer incomes
on account of high fuel and other commodity prices
whilst also reducing emissions. Towards increasing
spurred by geopolitical developments and external
resilience of agri-value chains, your Company adopts
sector imbalances emerged as major challenges
a systematic approach including measuring climate
for the economy. Nepal Rastra Bank along with the
risk impacts of key crop value chains, promoting
Government of Nepal responded to these challenges
climate resilient crop varieties, deploying agronomical
through multiple policy actions such as increase in
practices to conserve soil and water usage, etc. For
interest rates and imposition of restrictions on import
instance, in wheat, rice and soyabean crop value
of certain luxury goods from April to December 2022.
chains, the Business has been helping farmers adopt
These policy measures along with robust inward
climate resilient varieties which are tolerant to various
remittances helped stabilise the country’s current
biotic and abiotic stress.
account and balance of payments. Nepal’s foreign
In line with the national goal of doubling farmers’ exchange reserves increased to US$ 10.7 billion
income, your Company remains committed to catalyse in March 2023, from US$ 9.5 billion in July 2022,
a transformational shift of the agri ecosystem from the representing around nine months of import cover.
conventional production-centric to demand-responsive
Although the external sector has seen a marked
value chains. Towards this, the Business continues
improvement in the latter half of the period under
to focus on developing NextGen Indian agriculture,
review, high inflation, muted domestic demand and
anchored on ITCMAARS and climate smart agri-value
gradual unwinding of stimulus provided during the
chains with strong market linkages. The focus of these
pandemic continues to pose significant challenges
interventions is to reduce vulnerability and increase
for the economy. As per a recent report from National
the resilience of farmers, while lowering greenhouse
Statistics Office, Nepal’s GDP growth is estimated to
gas emissions and promoting food security.
remain subdued at 1.9% for the fiscal year ending July
NOTES ON SUBSIDIARIES 2023. Measures towards encouraging Foreign Direct
Investment (FDI) in the country, incentivising domestic
The following may be read in conjunction with the
manufacturing to substitute imports, promoting the
Consolidated Financial Statements of your Company
hospitality sector which has significant potential to
prepared in accordance with Indian Accounting
generate foreign exchange earnings and employment,
Standard 110. Shareholders desirous of obtaining the
on-ground implementation of reforms and promulgation
Report and Accounts of your Company’s subsidiaries
of industry-friendly policies continue to remain the key
may obtain the same upon request. Further, the
imperatives for sustained economic growth.
Report and Accounts of the subsidiary companies is
also available under the ‘Investor Relations’ section The legal cigarette industry is a major contributor to
of your Company’s website, www.itcportal.com, in the manufacturing sector of the country. The industry
a downloadable format. Your Company’s Policy for provides livelihoods, directly and indirectly, to more
determination of a material subsidiary, as adopted than five lakh farmers, farm workers and others
by your Board, in conformity with Regulation 16 of engaged in the cultivation and trade of tobacco
the Securities and Exchange Board of India (Listing products. However, the legal cigarette industry
Obligations and Disclosure Requirements) continues to face significant challenges from a
Regulations 2015, can be accessed on your Company’s punitive and discriminatory taxation and regulatory
corporate website at https://www.itcportal.com/material- regime. The company continues to engage with policy
subsidiary-policy . Presently, your Company does not makers for equitable, non-discriminatory, pragmatic,
have any material subsidiary. evidence-based regulations and taxation policies that

balance the economic imperatives of the country and animal husbandry extension services to improve
tobacco control objectives. breeding, health and nutrition for livestock,
Despite a challenging economic environment, − enhance quality of education in public schools in
the company reinforced its market standing in the the vicinity of the company’s operating locations,
Cigarettes business by leveraging its robust portfolio,
− develop public infrastructure in catchment areas of
superior product quality and wide distribution network.
operating locations,
Differentiated and innovative offerings launched
under the ‘Naulo’ and ‘Shaan’ brand during the year − participate in environment preservation through
received encouraging response. measures such as urban plantation, biodiversity
preservation and solid waste management.
The company’s manufacturing systems continued
to set new benchmarks in responsiveness, quality and In addition to the above, the company partnered with
productivity. Various initiatives such as installation the Nepal Army in its Mountain Clean-up campaign
of state-of-the-art technologies and process during the year which involved cleaning four mountain
automation were implemented during the year which peaks including Mt. Everest.
further strengthened the manufacturing capability
During the year, the company recorded Revenue
of the company. Relentless focus on developing
from Operations of NRs. 4953 crores (previous year
world-class products anchored on innovation and
NRs. 4382 crores) and Net Profit of NRs. 1088 crores
benchmarked international quality standards remains
(previous year NRs. 1005 crores).
a key source of sustainable competitive advantage
for the company. The company declared and paid a dividend of
NRs. 516 per equity share of NRs. 100 each for the
During the year, the company continued to strengthen
year ended July, 2022 (Asadh, 2079), amounting to
its market standing in the Agarbatti business
NRs. 1040 crores (previous year NRs. 467 per equity
leveraging its differentiated product portfolio, sharply
share amounting to NRs. 941 crores).
focused marketing investments and best-in-class
product availability across target markets. The The company is well-positioned to consolidate its
product portfolio was augmented with the launch leadership position by leveraging its robust portfolio
of new variants such as ‘Pushpanjali’, ‘Indreni’ and of products, deep & wide distribution network, best-
‘Champa Ziplock’. in-class manufacturing facilities and execution
The Confectionery business continues to make excellence while rapidly scaling up the newer FMCG
focused investments towards strengthening its market businesses and evaluating emerging opportunities in
standing. During the year, two new flavours were this space. The company continues to be the largest
launched - ‘Toffichoo Chatpata Fun’ and ‘Toffichoo contributor to the exchequer in Nepal.
Tadka Lichhi’ which have received encouraging
ITC Infotech India Limited and its subsidiaries
consumer response.
The Indian Information Technology (IT) Industry
The company continues to make multi-dimensional
remained resilient during the year in the backdrop
contributions towards building the societal and
economic capital of Nepal. Key interventions are of heightened uncertainty in the global economic
summarised below: environment. According to NASSCOM estimates,
India’s technology sector revenues grew by 8.4% in
− create agri-infrastructure such as vermicompost FY 2022-23 to US$ 245 billion, with IT Services also
pits and harvesting sheds for farmers near the growing at 8.3% on a high base. The technology
company’s operating locations,
industry continues to play a pivotal role in enabling
− provide training to improve productivity and organisations to accelerate digital transformation,
enhance income generation for farmers through optimise costs and enhance operational efficiencies.

The company continues to sharpen its focus on the ‘Hire-from-Anywhere’ recruitment model continues to
strategic pillars of Customer Centricity, Employee attract quality talent across Tier 1 and Tier 2 cities.
Centricity and Operational Excellence, while building
During the year, the company’s consolidated
differentiated offerings around the strategic areas of
Total Income grew by 16.6 % to ` 3363.06 crores
Cloud Technologies, Digital Workplace Solutions, (previous year ` 2884.30 crores). This was driven
Digital Manufacturing, Customer Experience and Data by the increasing traction in the company’s strategic
Analytics. During the year, the company recorded accounts as well as revenues from the DxP Services
robust growth in revenue on the back of strong line. Profit Before Tax stood at ` 529.66 crores
traction in the Americas, India and Rest of World (previous year ` 719.64 crores) and Net Profit stood
markets. Industry 4.0 solutions and Digital Experience at ` 405.25 crores (previous year ` 541.04 crores)
using data analytics and Infrastructure services were after considering certain costs associated with the
the key drivers of growth. Strategic Partner Agreement with PTC Inc., resource
During the year, the company entered into a strategic augmentation, steep escalation in manpower costs
partnership agreement with PTC Inc. to accelerate and accelerated investments in capability building in
customer digital transformation initiatives and the strategic focus areas and infrastructure.
adoption of PTC’s industry-leading Windchill® For the year under review:
product lifecycle management (PLM) software as a
a. ITC Infotech India Limited recorded Revenue from
service (SaaS). Further, the company commenced a
Operations of ` 2632.30 crores (previous year
new service line ‘Digital transforms Physical’ (DxP)
` 2288.57 crores) and Net Profit of ` 353.38 crores
Services, comprising a global ecosystem of PLM-led
(previous year ` 517.81 crores). The company paid
Digital Thread and SaaS experts, bringing together
a total dividend of ` 17 per Equity Share of ` 10/-
professionals from both companies into a unified
each aggregating ` 149.60 crores (previous year
global practice which will create offerings, including
` 53 per Equity Share of ` 10/- each aggregating
the tooling and methodologies required, and execute
` 451.56 crores).
programs to accelerate the adoption of PTC’s next
generation PLM solutions. b. ITC Infotech Limited, UK, a wholly-owned
subsidiary of the company, recorded Revenue
The company also continued to forge new alliances
of GBP 30.30 million (previous year GBP 40.02
and strengthen existing relationships with Independent
million) and Net Profit of GBP 1.45 million
Software Vendors (ISVs) in focus areas such as
(previous year GBP 0.79 million).
Digital Workplace Solutions, Digital Manufacturing
and Data analytics. These partnerships are aligned c. ITC Infotech (USA), Inc., a wholly-owned
to the company’s vision of taking a leadership role subsidiary of the company, together with its
in enabling the Digital Transformation and SaaS wholly-owned subsidiary Indivate Inc., recorded
adoption journey of its clients. The company also Revenue of US$ 149.28 million (previous year
expanded its global footprint by setting up new US$ 133.76 million) and Net Profit of US$ 4.68
subsidiaries and branches across several focus million (previous year US$ 2.53 million).
geographies. d. ITC Infotech Do Brasil LTDA., a wholly-owned
To fulfil the demand for talent to support growing subsidiary of the company incorporated in October
business requirements, the company continues to 2022, recorded Revenue of BRL 1.37 million and
Net Profit of BRL 0.12 million.
invest in hiring, training and retaining high-quality
talent while shaping its differentiated employee value e. The subsidiaries in Malaysia, France and Germany
proposition built on the core tenets of a compelling were incorporated in February and March 2023
purpose & culture, holistic well-being and global and are expected to be fully operational in the
career opportunities. Further, the company’s next year.

The company’s business-friendly solutions and strong market linkages, superior product quality and
new-age capabilities continued to gain global wide distribution network.
recognition. The company was positioned as
The company’s leadership in production of early
‘Innovator’ in Avasant’s CPG Digital Services 2022-23 generation seed potatoes and strength in agronomy
RadarView™, ‘Disruptor’ in Avasant’s Digital CX continue to support the ‘Bingo!’ range of potato chips
Services 2022-23 RadarView™, Digital Workplace of your Company and in servicing the seed potato
Services 2022 RadarView™, Manufacturing Digital requirements of the farmer base of your Company’s
Services 2022-2023 RadarView™, Intelligent Agri Business.
Automation Services 2022-23 RadarView™ and
The company’s Revenue from Operations stood at
featured as ‘Challenger’ in their GCC Region Digital
` 257.77 crores (previous year ` 256.67 crores)
Services 2022-23 RadarView™. The company’s
with Net Profit of ` 41.38 crores (previous year
Automation capabilities were positioned in the
` 43.04 crores). Total Comprehensive Income
‘Leadership Zone’ in Zinnov Zones Hyperintelligent
for the year stood at ` 41.42 crores (previous year
Automation Services H1 2023 for Intelligent
` 43.04 crores).
Automation Services – Retail, CPG and mid-tier
service providers and Robotic Process Automation The company continues to build on a strong
Services (mid-tier service providers). foundation for the future and remains confident of
effectively leveraging its deep domain expertise to
The company continues to fulfil its vision of providing
fortify its market standing in the seed potato industry.
business-friendly solutions to clients. As clients
across industries and geographies look to drive cost Technico Pty Limited and its subsidiaries
efficiencies while sustaining growth momentum, The company continues to focus on upgradation
the company is focused on being their trusted and commercialisation of its TECHNITUBER® Seed
partner in this journey. Towards this, the company Technology and customising its application across
will continue to make client and employee-focused various geographies. Further, the company is also
investments to enable clients accelerate their journey engaged in the marketing of TECHNITUBER® seed
of growth and differentiation. An endorsement of this produced at the facilities of its subsidiaries in China
strategy has been the winning of a significant and Canada and Technico Agri Sciences Limited,
multi-million, multi-year engagement during the year, India, a wholly-owned subsidiary of your Company, to
with an existing marquee client which will bolster global customers. For the year under review:
mid-term revenue growth.
a. Technico Pty Limited, Australia registered a
turnover of Australian Dollar (A$) 1.83 million
Technico Agri Sciences Limited
(previous year A$ 1.86 million) and a Net Profit of
During the year under review, potato production in A$ 1.04 million (previous year A$ 0.91 million).
India stood at 51 million MT, lower by 5% compared
b. Technico Asia Holdings Pty Limited, Australia,
to the previous year. The drop in crop production led
Technico Technologies Inc., Canada and Technico
to stocks being warehoused in anticipation of higher
Horticultural (Kunming) Co. Limited, China – there
post-harvest prices. However, as the year progressed,
were no significant events to report with respect to
demand for seeds remained subdued on account of
the above companies.
lower planting due to heavy and continuous rains.
This resulted in a pile up of seed inventory in cold WelcomHotels Lanka (Private) Limited
stores, leading to a drop in seed prices during the
WelcomHotels Lanka (Private) Limited (WLPL),
peak selling season.
a wholly-owned subsidiary of your Company, was
Amidst a challenging operating environment incorporated in Sri Lanka in April 2012, with the
as aforestated, the company delivered resilient objective of developing and operating a mixed-use
performance by leveraging institutional strengths, development project (‘Project’) comprising a luxury

hotel and a super-premium residential apartment Course - which continues to enjoy strong brand equity
complex, situated on 5.86 acres of prime sea-facing with its members, guests and the golfing fraternity.
land in Colombo.
During the year, the Club hosted several prestigious
The Project has been accorded the status of a tournaments and sustained its leadership position in
‘Strategic Development Project’ entitling the company the corporate tournament segment in the Delhi-NCR
to various fiscal benefits in Sri Lanka. Further, the area. The Club continues to remain an ‘Asian Tour
Project is also exempt from Sri Lankan foreign Destinations Member’, the only one in the country and
exchange regulations. among 12 in Asia.
Project construction activity, which was running
Continuing with its endeavour to promote Junior Golf
on schedule till Q3 of FY 2018-19, was adversely
for the future generation of Golfers, the Club gained
impacted due to disruptions in the aftermath of the
the status of becoming a ‘US Kids Destination Course’
terror incidents in 2019, recurrent waves of the COVID
during the year.
pandemic and thereafter by the challenging
socio-economic and operating conditions prevailing The company also owns ‘ITC Grand Bharat’ – a
in the country over the last 18 months. The situation 104-key all-suite luxury retreat at Gurugram, which
in the country is progressively returning to normalcy. has been licensed to your Company. The retreat,
The Government of Sri Lanka has undertaken several an oasis of unhurried luxury, is co-located with
steps to stabilise the economy; these include securing the company’s prestigious Classic Golf & Country
financial assistance from multi-lateral agencies and Club. During the year, ITC Grand Bharat received
other countries, increasing interest rates to curb several prestigious awards that reflect the industry’s
inflation, restricting non-essential imports to conserve acknowledgement of exceptional hospitality offered
foreign exchange, introduction of taxes to boost
by the property. Aravali Pavilion, the retreat’s all day
Government revenues, etc. During the year,
dining restaurant, was recognised as the ‘Best All Day
Sri Lanka secured a 48-month Extended Fund
Dining Restaurant’ in the 5-star hotel category at
Facility from the International Monetary Fund of
‘The Big Foodie Awards’. Additionally, Kaya Kalp -
US$ 2.9 billion to support Sri Lanka’s economic
The Royal Spa won the ‘Sattva Iconic Wellness
policies and reforms.
Awards’ in the ‘Wellness Spa of the Year’ category.
Amidst the aforementioned challenges and
operational constraints, the company remains focused During the year ended 31st March, 2023, the
on completing the Project in an expeditious manner. company recorded Total Income of ` 37.21 crores
While the macro-economic challenges faced by (previous year ` 29.46 crores) and Net Profit of
the country have impacted the sales velocity of ` 9.68 crores (previous year ` 2.85 crores). Total
‘The Sapphire Residences’ luxury apartments, given Comprehensive Income for the year stood at ` 9.60
its unique positioning in the market and superior crores (previous year ` 2.88 crores).
value proposition, the company expects the same to
gain momentum with improved stability in the Srinivasa Resorts Limited
macro-economic environment and as the project The company owns ‘ITC Kakatiya’ – a 188-key
nears completion, in line with the trend in other luxury hotel located in Hyderabad, which is operated
projects in Colombo. and marketed by your Company. ITC Kakatiya is a
Your Company’s investment in WLPL stood at USGBC LEED Platinum Certified hotel. During the
` 2775 crores as at 31st March, 2023. year, the property also received a ‘Platinum +’ We
Assure Certification under DNV’s My Care Infection
Landbase India Limited Risk Management Programme. The property has
The company owns and operates the Classic Golf & received several accolades, establishing itself as one
Country Club, a 27-hole Jack Nicklaus Signature Golf of the finest luxury hotels and F&B destinations in the

city. ‘Dakshin’ was adjudged the ‘Best South Indian Income for the year stood at ` 5.20 crores (previous
Fine Dining Restaurant’ for the 13th consecutive year year ` 0.28 crore).
and ‘Gourmet Couch’ was adjudged the ‘Best
The Board of Directors of the company has
Takeaway’ for the third consecutive year at the Times
recommended a dividend of ` 12.50 per Equity Share
Food Guide Nightlife Awards 2023.
of ` 10 each for the year ended 31st March, 2023
Pursuant to easing of travel restrictions, the hotel (previous year Nil).
witnessed strong recovery in demand during the
year with revenues surpassing pre-pandemic levels. Bay Islands Hotels Limited
Investments in digital initiatives continued to be The company’s hotel in Port Blair, licensed to your
leveraged to enhance guest experience and drive Company, continues to offer a unique gateway to
cost optimisation. the Andamans with its strategic location, excellent
During the year ended 31st March, 2023, the architectural design and, superior product and
company recorded Total Income of ` 72.46 crores service quality.
(previous year ` 44.86 crores) with Net Profit of Tourism in the Andamans rebounded post easing of
` 7.55 crores (previous year Net loss ` 1.63 crores). travel restrictions that had been imposed during the
Total Comprehensive Income for the year stood at pandemic. However, airport operations at Port Blair
` 7.51 crores (previous year (-)` 1.59 crores). continued to remain affected due to ongoing renovation
activities, impacting tourist arrivals to the island.
Fortune Park Hotels Limited
During the year ended 31st March, 2023, the
The company, which caters to the ‘Mid-market to
company recorded Total Income of ` 2.75 crores
Upscale’ Business Hotels segment under the brand
(previous year ` 1.61 crores) and Net Profit and Total
‘Fortune’, continues to forge new alliances and
Comprehensive Income of ` 1.92 crores (previous
expand its footprint. During the year, five hotels were
year ` 1.14 crores).
launched under the brand. Further, with three new
alliances signed during the year, the company has an The Board of Directors of the company has
aggregate inventory of nearly 4400 rooms across recommended a dividend of ` 80.00 per Equity Share
57 properties and 49 cities of India. Of these, of ` 100 each for the year ended 31st March, 2023
43 hotels are in operation while the remaining (previous year ` 70.00 per Equity Share).
14 hotels are in various stages of development, and
are slated to be commissioned in the near term. Wimco Limited
During the year, the company registered strong The company’s business activities comprise
growth in revenue and profits with both business fabrication and assembly of machinery for tube filling,
and leisure segments witnessing significant traction. cartoning, wrapping, material handling including
The brand’s leadership in the target segment was conveyor solutions and engineering services for the
also acknowledged during the year, with the company FMCG and Pharmaceutical industries.
receiving the ‘Today’s Traveller Award 2022 for Best During the year, the company’s order book remained
Upscale Business & Leisure Hotel Brand’ as well as muted amidst a challenging operating environment.
the ‘VETA 2023 Award for Most Preferred Premium The company’s Revenue from Operations for the year
Business & Leisure Hotel Brand’.
stood at ` 11.46 crores (previous year ` 11.62 crores)
During the year ended 31st March, 2023, the company with a Net Profit of ` 0.16 crore (previous year
recorded Total Income of ` 44.35 crores (previous Net Loss of ` 0.42 crore). Total Comprehensive
year ` 25.39 crores) and Net Profit of ` 5.34 crores Income for the year stood at ` 0.21 crore
(previous year ` 0.19 crore). Total Comprehensive (previous year (-) ` 0.44 crore).

North East Nutrients Private Limited Russell Credit Limited

Your Company holds 76% equity stake in North East The company recorded Total Income of ` 48.61 crores
Nutrients Private Limited, which has set up a food (previous year ` 41.56 crores) and Net Profit of
processing facility in Mangaldoi, Assam, to cater to ` 38.30 crores (previous year ` 33.46 crores) driven
the fast-growing biscuits market in Assam and other by increase in the yield of its financial investments on
north-eastern states. the back of increase in market interest rates.
During the year, unprecedented inflation in Total Comprehensive Income for the year stood
input costs were effectively mitigated by the at ` 55.24 crores (previous year ` 120.79 crores).
company on the back of focused approach towards The company continues to closely monitor its
consistently improved operational efficiency and investments in line with market interest rate
productivity. In recognition of its high standards of movements and explore opportunities to make
quality, the company received two Gold Awards strategic investments for the ITC Group.
at the ‘Convention on Quality Concepts’, 2022
organised by Quality Circle Forum of India, Temporary surplus liquidity of the company is
Kolkata Chapter and a Bronze Award at the mainly deployed in bonds, government securities,
‘CII National Kaizen Competition’. debt mutual funds, bank fixed deposits etc.
For FY 2022-23, the Board of Directors of the
The company’s Revenue from Operations for the company has recommended a final dividend of
year stood at ` 160.69 crores (previous year ` 163.90
` 0.29 per Equity Share of ` 10 each, aggregating
crores), while Net Profit for the year increased
` 18.75 crores (previous year interim dividend of
to ` 15.98 crores (previous year ` 14.43 crores).
` 0.19 per Equity Share of ` 10 each and a final
Total Comprehensive Income for the year stood at
dividend of ` 0.06 per Equity Share of ` 10 each,
aggregating ` 16.16 crores).
Further, during the year, the company redeemed the
10% Cumulative Non-Convertible Preference Shares Gold Flake Corporation Limited
aggregating ` 18.00 crores held by your Company. The company holds 50% equity stake in
Pursuant to the redemption, the company has ITC Essentra Limited – a joint venture with Essentra
become debt free. Filter Products International Limited, UK. During the
year, the company recorded Total Income of
ITC IndiVision Limited
` 19.97 crores (previous year ` 17.29 crores) and
ITC IndiVision Limited (IIVL) was incorporated as a Net Profit of ` 18.42 crores (previous year
wholly-owned subsidiary of your Company on ` 16.08 crores). The company declared interim
9th July, 2020. dividend of ` 11.30 per Equity Share of ` 10 each,
The company has made substantial progress during aggregating ` 18.08 crores (previous year
the year towards construction of the manufacturing ` 10.00 per Equity Share of ` 10 each, aggregating
facility near Mysuru, Karnataka, primarily for the ` 16.00 crores).
manufacture and export of nicotine and nicotine
derivative products. Regulatory approvals for Greenacre Holdings Limited
commencing trials and commissioning are in the The company provides maintenance services for
process of being obtained. commercial office buildings, engineering, procurement
The facility is geared to manufacture purest nicotine and construction management services as well as
derivatives conforming to US and EU pharmacopoeia project management consultancy services.
standards. During the year, the company recorded Total Income
Your Company’s investment in IIVL stood at of ` 8.30 crores (previous year ` 8.09 crores) and Net
` 280 crores as at 31st March, 2023. Profit of ` 1.99 crores (previous year ` 1.79 crores).

ITC Integrated Business Services Limited Net Loss of ` 0.03 crore (previous year Net Loss of
(Formerly known as ITC Investments & ` 0.04 crore).
Holdings Limited)
Prag Agro Farm Limited
Until FY 2021-22, the company was an
The operations of the company continue to be
‘Unregistered Core Investment Company’ within
adversely impacted by the Order of the Honourable
the meaning of the Core Investment Companies
High Court of Uttarakhand at Nainital in February
(Reserve Bank) Directions, 2016. During the year,
2014 dismissing the Writ Petition filed by the company
the company entered into the business of providing
against the Order of the District Magistrate authorising
support to the Business Shared Services operations
the State authorities to take possession of the land
of your Company. For this purpose, the company
leased to the company. The Appeal filed by the
also changed its name to ‘ITC Integrated Business
company against the aforestated Order was admitted
Services Limited’ with effect from 20th December, in April 2014 and the matter has been pending before
2022. Accordingly, the company ceased to be the Honourable High Court.
an ‘Unregistered Core Investment Company’
During the year, the company recorded Total Income
as aforesaid.
of ` 0.11 crore (previous year ` 0.09 crore) and Net
During the year, the company recorded Total Income Loss of ` 0.05 crore (previous year Net Loss of
of ` 0.65 crore (previous year ` 0.05 crore) and Net ` 0.05 crore).
Profit of ` 0.04 crore (previous year ` 0.01 crore).
ITC Fibre Innovations Limited
MRR Trading & Investment Company Limited
The company was incorporated as a wholly owned
The company, a wholly-owned subsidiary of ITC subsidiary of your Company in March 2023 with the
Integrated Business Services Limited (formerly ITC objective of foraying into the Moulded Fibre Products
Investments & Holdings Limited), holds tenancy rights (MFP) space. Moulded Fibre Products, made from
in a commercial building located in Mumbai and also renewable natural fibres such as wood/bamboo
provides estate maintenance services. or bagasse, offer sustainable packaging solutions
across industries including food service & delivery,
pharmaceutical, beauty and electronics.
of ` 7.25 lakhs (previous year ` 7.25 lakhs) and Net
Profit of ` 0.28 lakh (previous year ` 0.13 lakh). In the first phase, a state-of-the-art manufacturing
facility is being set up at Badiyakhedi, Madhya
Pavan Poplar Limited Pradesh, to pursue identified opportunities in this
rapidly evolving space.
The operations of the company continue to be
adversely impacted pursuant to the Order of the NOTES ON JOINT VENTURES
Honourable High Court of Uttarakhand at Nainital in
February 2014 dismissing the Writ Petition filed by the ITC Essentra Limited
company against the Order of the District Magistrate The company registered strong growth during the
authorising the State authorities to take possession year aided by recovery in the macro-economic
of the land leased to the company. The Appeal filed environment, agility in execution and effective
by the company against the aforestated Order was customer service, in spite of significant volatility in
admitted in April 2014 and the matter is pending supply chains for certain input materials.
before the Honourable High Court.
The company retained its leadership position of being
During the year, the company recorded Total Income the preferred supply chain partner for several
of ` 0.12 crore (previous year ` 0.05 crore) and well-known national and international brands leveraging

its core strengths of strong customer relationships, luxury hotel complex at Begumpet, Hyderabad.
focused innovation, best-in-class quality and Under the terms of the Joint Venture Agreement,
consistent delivery. your Company had acquired 26% equity stake in
EHPL. Your Company’s investment in EHPL stood
The company continues to partner with its customers
at ` 46.51 crores as at 31st March, 2023.
and make investments in technology upgradation and
capability building towards sustaining its position as As reported in prior years, the Ambience Group
the ‘innovation and quality benchmark’ in the Indian had expressed its desire to review the timing of
cigarette filter industry. The company has further further investments in EHPL, citing concerns about
expanded its specialty filters capacity in line with the viability of the project in view of the challenging
its strategy of offering a wide range of innovative economic environment and the sluggish demand
products to its customers including filter offerings with conditions currently prevailing in the relevant market.
sustainable materials. Your Company had been exploring its options in
During the year ended 31st March, 2023, the this regard.
company’s Revenue from Operations stood at On 7th April, 2023, your Company divested its entire
` 545.66 crores (previous year ` 385.62 crores). shareholding i.e. 26% of the paid-up share capital,
Net Profit during the year stood at ` 64.77 crores held in EHPL, consequent to which EHPL ceased to
(previous year ` 41.09 crores). be a joint venture of your Company with effect from
The Board of Directors has recommended a dividend the said date.
of ` 100 per equity share of ` 10 each for the year
ended 31st March, 2023 (previous year ` 80 per Logix Developers Private Limited
equity share). Logix Developers Private Limited (LDPL) is a joint
venture between your Company and Logix Estates
Maharaja Heritage Resorts Limited Private Limited for developing a luxury hotel-cum-service
Maharaja Heritage Resorts Limited (MHRL), a joint apartment complex at the company’s leasehold
venture of your Company with Jodhana Heritage site located at Sector 105 in New Okhla Industrial
Resorts Private Limited, currently operates 36 Development Authority (NOIDA). Your Company
heritage properties across 14 States in India under the presently holds 27.9% equity stake in LDPL.
‘WelcomHeritage’ brand. The portfolio of properties, As reported in prior years, your Company reiterated
comprising ‘Legend Hotels’, ‘Heritage Hotels’ and its position with the JV partner that it was committed
‘Nature Resorts’, provides uniquely differentiated to developing a luxury hotel-cum-service apartment
offerings to guests in the cultural, heritage, nature, complex as envisaged under the JV Agreement and
wildlife and adventure tourism segments respectively. that it was not interested in progressing with any
During the year ended 31st March, 2023, alternative project plans proposed by the JV partner.
the company recorded Total Income of ` 7.20 crores However, the JV partner refused to progress the
(previous year ` 4.70 crores) and Net Profit of project and instead expressed its intent to exit from
` 0.51 crore (previous year ` 0.28 crore). Total the JV by selling its stake to your Company.
Comprehensive Income for the year stood at Subsequently, the JV partner proposed that both
` 0.49 crore (previous year ` 0.29 crore). parties should find a third party to sell the entire
shareholding in LDPL. In view of these developments,
Espirit Hotels Private Limited
your Company had filed a petition before the erstwhile
Espirit Hotels Private Limited (EHPL) was set up Company Law Board submitting that the affairs of the
as a joint venture between your Company and JV entity were being conducted in a manner that was
the Ambience Group, Hyderabad, for developing a prejudicial to the interest of your Company and the

JV entity. The matter is currently before the National statements of LDPL, the Consolidated Financial
Company Law Tribunal (NCLT). The JV partner had Statements of your Company for the year ended
also filed a petition before the Honourable Delhi High 31st March, 2023, have been prepared based on the
Court for winding up the JV company, which was financial statements prepared by the management
transferred to the NCLT by the Honourable Delhi of LDPL.
High Court. The matter was heard before the NCLT
on several occasions in the past but could not be NOTES ON ASSOCIATES
concluded. On 21st January, 2020, the matter was
International Travel House Limited
assigned to a new bench, post which hearings on the
matter are being held. The company offers a full range of business travel
solutions for domestic and international travel
In July 2022, LDPL received a communication from
including air ticketing, car rentals, hotel arrangements,
NOIDA authorities intimating cancellation of the
meetings & events, leisure services and foreign
sub-lease for the land on which the project was to
exchange. Business travel improved during the
be constructed on account of non-payment of lease
instalments and non-fulfilment of the conditions of year aided by improved sentiments and easing of
the sub-lease, including forfeiture of the amount travel restrictions. Travel solutions offered by the
deposited. The company is evaluating all options to company witnessed positive traction during the year.
pursue its rights in the matter. Consequently, as a Structural cost interventions over the years also aided
matter of prudence, the company had derecognised improvement in profitability. The company continues
the leasehold land/assets as well as adjusted/ to leverage the safety and hygiene initiatives adopted
reversed the lease liabilities towards NOIDA in across its mobility services. Further, in line with
accordance with the terms of the sub-lease deed, its initiatives towards embedding sustainability in
as an adjusting event in terms of Ind AS 10 – “Events business operations, the company also introduced
after the Reporting Period” in its financial statements electric vehicles during the year. Digital interventions
for the year ended 31st March 2022. to enhance customer service and efficiency were
strengthened with the roll out of the company’s new
During the year ended 31st March, 2023, the self-booking tool, providing state-of-the-art, unique
company recorded a Net profit of ` 0.16 crore solutions for business travel.
(previous year ` 152.56 crores, including exceptional
item of ` 152.45 crores on account of aforesaid During the year ended 31st March, 2023, the company
derecognition/adjustment of balances in respect of recorded a Total Income of ` 186.90 crores (previous
leasehold land). The Net Worth of the company stood year ` 96.51 crores) and Net Profit of ` 28.39 crores
at ` 5.10 crores as at 31st March, 2023 (previous year (previous year Net Loss of ` 10.70 crores).
` 4.94 crores). Total Comprehensive Income for the year stood at
` 27.94 crores (previous year (-) ` 10.18 crores).
Your Company’s total investment in LDPL was
` 41.95 crores. Your Company had made provisions Gujarat Hotels Limited
aggregating ` 33.45 crores towards diminution in the
The company’s hotel, ‘Welcomhotel Vadodara’,
carrying value of investment in LDPL in the previous
is operated by your Company under an Operating
years and has made additional provision of ` 8.50
License Agreement.
crores in the current year. Consequently, the carrying
value of your Company’s investment in LDPL as at The Hotel witnessed progressive recovery during
31st March, 2023, is Nil. the year driven by resumption of business and
international travel.
The financial statements of LDPL for the year ended
31st March, 2023, are yet to be approved by its During the financial year ended 31st March, 2023,
Board of Directors. In the absence of audited financial the company recorded a Total Income of ` 5.63 crores

(previous year ` 3.57 crores), Net Profit and Total your Company pursuant to additional investment of
Comprehensive Income of ` 4.25 crores (previous ` 13.46 crores through acquisition of Compulsorily
year ` 2.72 crores). The Board of Directors of the Convertible Preference Shares on 27th October, 2022
company has recommended a dividend of ` 2 per thereby increasing your Company’s stake to 22%
Equity Share of ` 10/- each for the year ended (previous year 16%) on a fully diluted basis.
31st March, 2023 (previous year ` 2 per Equity Share). Your Company’s investment in Mother Sparsh stood
at ` 33.46 crores as at 31st March, 2023.
ATC Limited (an associate of Gold Flake
Corporation Limited) Mother Sparsh is a premium ayurvedic and natural
personal care brand in the D2C space with focus
The company is a contract manufacturer of cigarettes.
on the mother and baby care segment. It has a
The company has continued to maintain high levels
wide range of baby and mother care products that
of operational responsiveness and benchmark
leverages the wisdom and knowledge of Ayurveda.
quality in its manufacturing operations to service its
customers. During the year, the company received Associates of Russell Credit Limited
the ‘CII National Award for Excellence in Energy
Management’ and a Certificate of Appreciation for Russell Investments Limited
Occupational Safety and Health from NSCI.
During the year, the company recorded Total Income of ` 3.55 crores (previous year ` 2.83 crores) and Net
of ` 30.95 crores (previous year ` 27.11 crores) and Profit of ` 2.52 crores (previous year ` 3.38 crores).
Net Profit of ` 1.26 crores (previous year Total Comprehensive Income for the year stood at
` 0.35 crore). ` 18.59 crores (previous year ` 15.51 crores)
reflecting higher mark-to-market gains from long
Delectable Technologies Private Limited
term investments. The company declared interim
Delectable Technologies Private Limited (Delectable) dividend of ` 0.70 per Equity Share of ` 10 each,
is, inter alia, engaged in the sale of FMCG products aggregating ` 1.18 crores (previous year final dividend
leveraging app-based technology through vending of ` 0.50 per Equity Share of ` 10 each, aggregating
machines, primarily installed across office locations. ` 0.84 crore). The company continues to explore
During the year, your Company invested ` 1.88 crores opportunities for strategic investments.
towards the fourth tranche of Compulsorily
Convertible Preference Shares offered by Delectable. Divya Management Limited
Consequently, your Company’s effective shareholding During the year, the company recorded Total Income
in Delectable increased to 33.42% (previous year of ` 0.74 crore (previous year ` 0.40 crore) and Net
27.34%) on a fully diluted basis. Profit of ` 0.42 crore (previous year ` 0.28 crore).
The company’s revenues progressively recovered The company continues to explore opportunities for
during the year with the reopening of offices and strategic investments.
surpassed pre-pandemic levels by the end of FY
Antrang Finance Limited
2022-23. The company continues to expand its
footprint through installation of new vending machines. During the year, the company recorded Total Income
of ` 0.54 crore (previous year ` 0.22 crore) and Net
Mother Sparsh Baby Care Private Limited
Profit of ` 0.32 crore (previous year ` 0.05 crore).
During the year, Mother Sparsh Baby Care Private The company continues to explore opportunities for
Limited (Mother Sparsh) became an associate of strategic investments.

INTERNAL FINANCIAL CONTROLS reasonable assurance with regard to recording and

providing reliable financial information; complying
The Corporate Governance Policy guides the conduct
of affairs of your Company and clearly delineates with applicable statutes; safeguarding assets from
the roles, responsibilities and authorities at each unauthorised use; ensuring that transactions are
level of its three-tiered governance structure and carried out with adequate authorisation and complying
key functionaries involved in governance. The ITC with Corporate Policies and Processes. Such controls
Code of Conduct commits management to financial have been assessed during the year, after taking into
and accounting policies, systems and processes. consideration the essential components of internal
The Corporate Governance Policy and the ITC Code controls stated in the Guidance Note on Audit of
of Conduct stand widely communicated across the Internal Financial Controls over Financial Reporting
enterprise at all times and together with the Strategy issued by The Institute of Chartered Accountants
of Organisation, Planning & Review Processes of India. Based on the results of such assessment
and the Risk Management Framework provide carried out by management, no reportable material
the foundation for Internal Financial Controls with weakness or significant deficiency in the design or
reference to your Company’s Financial Statements. operation of internal financial controls was observed.
Nonetheless, your Company recognises that any
Such Financial Statements are prepared on the
internal control framework, no matter how well
basis of the Significant Accounting Policies that are
designed, has inherent limitations and accordingly,
carefully selected by management and approved by
regular audit and review processes ensure that such
the Audit Committee and the Board. These Policies
are supported by the Corporate Accounting and systems are reinforced on an ongoing basis.
Systems Policies that apply to the entity as a whole
RISK MANAGEMENT
to implement the tenets of Corporate Governance
and Significant Accounting Policies uniformly across As a diversified enterprise, your Company continues
your Company. The Accounting Policies are reviewed to focus on a system-based approach to business
and updated from time to time. These, in turn, are risk management. The management of risk is
supported by a set of Divisional policies and Standard embedded in the corporate strategies of developing
Operating Procedures (SOPs) that have been a portfolio of world-class businesses that best
established for individual Businesses. match organisational capability with opportunities
in domestic and international markets, developing
Your Company uses Enterprise Resource Planning
(ERP) systems as a business enabler and also capabilities and competencies for the future in order
to maintain its books of accounts. The SOPs, in to enhance competitiveness and win in the markets
tandem with transactional controls built into the ERP of tomorrow. Accordingly, management of risk has
systems, ensure appropriate segregation of duties, always been an integral part of your Company’s
tiered approval mechanisms and maintenance of ‘Strategy of Organisation’ and straddles its planning,
supporting records. The Information Management execution and reporting processes & systems. Backed
Policy reinforces the control environment. The by strong internal control systems, the current Risk
systems, SOPs and controls are reviewed by Management Framework consists of the following
Divisional management and audited by Internal Audit, key elements:
whose findings and recommendations are reviewed – The Corporate Governance Policy, approved
by the Audit Committee and tracked through till by the Board, clearly lays down the roles
implementation. and responsibilities of the various entities in
Your Company has in place adequate internal relation to risk management covering a range
financial controls with reference to the Financial of responsibilities, from the strategic to the
Statements. These have been designed to provide operational. These role definitions, inter alia,

provide the foundation for appropriate risk – A robust and comprehensive framework of
management procedures, their effective strategic planning and performance management
implementation across your Company and ensures realisation of business objectives based
independent monitoring and reporting by on effective strategy implementation. The annual
Internal Audit. planning exercise requires all Businesses to clearly
identify their top risks and set out a mitigation
– The Risk Management Committee, constituted by
plan with agreed timelines and accountabilities.
the Board, monitors and reviews the strategic risk
Businesses are required to confirm periodically that
management plans of your Company as a whole
all relevant risks have been identified, assessed,
and provides necessary directions on the same.
evaluated and that appropriate mitigation systems
– The Corporate Risk Management Cell, through have been implemented.
focused interactions with Businesses, facilitates
Your Company endeavours to continuously sharpen its
the identification and prioritisation of strategic and
Risk Management systems and processes in line with a
operational risks, development of appropriate
rapidly changing business environment. In this regard,
mitigation strategies and conducts periodic
it is pertinent to note that some of the key Businesses
reviews of the progress on the management of
of your Company have adopted the ISO 31000 Risk
identified risks.
Management Standard and accordingly, the Risk
– A combination of centrally issued policies and Management systems and processes prevalent in
Divisionally-evolved procedures brings robustness these Businesses have been independently assessed
to the process of ensuring that business risks are to be compliant with the said global Standard on Risk
effectively addressed. Management. During the year, three Businesses
– Appropriate structures are in place to proactively were assessed for compliance with ISO 31000 Risk
monitor and manage the inherent risks in Management Standard. This is in addition to the nine
businesses with unique/relatively high risk profiles. Businesses which had previously been assessed for
such compliance. The centrally anchored initiative
– Foreign currency exposures continue to be
of conducting independent external reviews of key
managed within the framework of the Forex
business processes with high ‘value at risk’ continued
Manual.
during the year. These interventions continue to
– A strong and independent Internal Audit function at provide further assurance on the robustness of risk
the Corporate level carries out risk focused audits management practices prevalent in your Company.
across all Businesses, enabling identification of
Recognising Digital as a megatrend shaping the future,
areas where risk management processes may
your Company remains focused on building a dynamic
need to be strengthened. The Audit Committee
‘Future-Tech’ enterprise powered by state-of-the-art
of the Board reviews Internal Audit findings and
digital technologies and infrastructure across the value
provides strategic guidance on internal controls.
chain adding significant impetus to digital marketing,
The Audit Compliance Review Committee closely
digital commerce and digital operations. Your Company
monitors the internal control environment within
has made several interventions straddling strategic
your Company including implementation of the
impact areas such as Intelligent new-age insights that
action plans emerging out of internal audit findings.
reimagine Consumer Experience, Business Model
– At the Business level, Divisional Auditors Transformation, Smart Operations and Employee
continuously verify compliance with laid down Experience, which continue to be scaled up across
policies and procedures and help plug control your Company. Cutting-edge digital technologies
gaps by assisting operating management in the such as Internet of Things (IoT), Data Analytics,
formulation of control procedures. Artificial Intelligence/Machine Learning, Augmented/

Virtual Reality, Robotic Process Automation, mobile Information Technology-Operational Technology

applications etc., are being embraced by your (IT-OT) integration for Industrial Control Systems has
Company’s Businesses. Cumulatively, these are been identified as a focus area as the convergence
resulting in changes in the risk profile of your Company and integration between IT and OT is increasing
in a heightened cyber threat environment. The exponentially. Related guidelines have been
ever-evolving nature of cyber threats and the increased formulated towards ensuring that your Company’s
sophistication of attackers make cyber security risk systems & processes remain contemporary and have
management a critical focus area for the organisation. best-in-class capabilities.
A Cyber Security Committee, chaired by the Chief India ranks amongst the most vulnerable countries
Information Officer, is in place to provide specific around the world in terms of climate change impact.
focus on cyber security related risks, with the primary Accordingly, to mitigate the impact of climate
responsibility of tracking emerging practices & change on the operations of your Company, as part
technologies and providing suitable recommendations of its Sustainability 2.0 vision, your Company is
for enhancing security of the IT systems and pursuing a multi-pronged climate strategy that entails
infrastructure. extensive decarbonisation and building resilience
against climate risk across the value chain. Your
A multi-tier cyber defence architecture comprising
Company’s low carbon growth approach focuses on
firewalls, anti-virus and anti-malware systems is in
increasing the share of renewable energy, improving
place to detect, protect and respond to cyber incidents
energy productivity, construction of green buildings,
at various access and data processing points across
greening logistics, optimising ‘distance-to-market’ and
the organisation. The security policies and practices
promoting regenerative agriculture practices in
of the organisation are built on industry standard
agri-value chains, thus enabling transition to a net
frameworks such as NIST Cyber Security Framework
zero economy. At the same time, your Company
and ISO 27001. The robustness of the security
is actively working towards climate proofing its
posture is also premised on end user awareness of
operations and agri-value chains by using latest
safe and secure practices.
climate risk modelling techniques, and developing
Further interventions are underway to enhance site-specific adaptation strategies.
surveillance and response capabilities with
Your Company sources several commodities for
augmentation of cutting-edge technologies and skills of
use as inputs in its Businesses and also engages in
a Next Generation Cyber Security Operations Centre
agri-commodity trading as part of its Agri Business.
(SOC). With progressive transitioning of mission-critical
In respect of commodities sourced for use as inputs
data and transaction processing workloads to the
in its Businesses, your Company has well laid out
Cloud, the network infrastructure of the organisation is
policies to manage risks arising out of the inherent
also being transformed using contemporary network
price volatility associated with such commodities.
and security technologies into a Digital-Ready,
This includes robust mechanisms for monitoring
Cloud-Secure wide area network, to provide all
market dynamics towards making informed sourcing
authorised users fast, reliable and safe connections
decisions, well defined inventory holding norms
from anywhere through any device and at any time.
based on considerations such as seasonality and
During the year, a maturity assessment of the Cyber the strategic nature of the commodity concerned,
Security architecture of your Company was carried out long-term contracts with suppliers and continuously
by a global network and security solutions provider. diversify supplier base to secure supply of critical
As per the study, your Company’s Cyber Security items at competitive costs. Multiple sourcing models,
Systems and Processes are benchmarked to global wide geographical spread, extensive sourcing and
majors and outperformed local peers. supply chain network and associated infrastructure

in key growing areas coupled with deep-rooted was also updated on the effectiveness of your
farmer linkages ensure sourcing of high quality Company’s Risk Management systems and policies.
agri-commodities at competitive costs. The risk management practices of your Company,
In respect of Agri-commodity trading, your Company as reviewed through the Risk Management Cell
has a well laid out policy to manage risks associated and Internal Audit processes, have been found to
with sourcing of such commodities. This includes: be relevant and commensurate with the size and
complexity of its operations.
– segregation of duties and robust internal controls
through a system of checks and balances embedded AUDIT AND SYSTEMS
in the organisation and governance structure;
Your Company believes that strong internal control
– clearly defined limits for trading position (long and systems that are commensurate with the scale, scope
short) and net cash loss for specific commodities/ and complexity of its operations are concomitant
commodity groups; to the principle of governance that freedom of
– mitigation of price, liquidity and counter party management should be exercised within a framework
risks through hedging on commodity exchanges of appropriate checks and balances.
(mainly NCDEX) for certain commodities, as Your Company remains committed to ensuring a
applicable. Correlation between prices prevailing mature and effective internal control environment that,
in the physical market and those on the commodity inter alia, provides assurance on orderly and efficient
exchange is analysed regularly to ensure conduct of operations, security of assets, prevention
effectiveness of hedging; and detection of frauds/errors, accuracy and
completeness of accounting records and Management
– robust monitoring and review mechanisms of net
Information Systems, timely preparation of reliable
open positions and ‘value at risk’.
financial information, adherence with relevant statutes
The combination of policies and processes as and compliance with related party transactions.
outlined above adequately addresses the various
Your Company’s internal control systems include
risks associated with sourcing of commodities for
documented policies and procedures, segregation
your Company’s Businesses.
of duties and careful selection and development
Your Company’s strategy of backward integration in of employees.
sourcing of agri-commodities such as wheat, potato,
Your Company’s independent and robust Internal
fruit pulp, spices, milk and leaf tobacco; in-house
Audit processes, both at the Business and Corporate
manufacturing of paperboards, paper and packaging level, provide assurance on the adequacy and
(including pulp production and print cylinder making effectiveness of internal controls, compliance with
facilities); wood procurement from the economic operating systems, internal policies and regulatory
vicinity of the Bhadrachalam unit, facilitates access to requirements. The role of Internal Audit is to enhance
critical inputs at benchmark quality and competitive and protect organisational value by providing
cost besides ensuring security of supplies. Further, risk-based assurance, advice and insight while
each of your Company’s Businesses continuously enabling continuous improvement of your Company’s
focuses on product mix enrichment and yield control systems.
improvement towards protecting margins and
The Internal Audit function, consisting of
insulating operations from spikes in input prices.
professionally qualified accountants, engineers and
The Risk Management Committee met thrice during the Information Technology (IT) specialists, is adequately
year and was updated on the status and effectiveness skilled and resourced to deliver audit assurances at
of the risk management plans. The Audit Committee highest levels. Targeted Learning and Development

programmes on contemporary topics are periodically productivity including the deployment of contemporary
organised to enhance knowledge and skill sets. best-in-class tools for audit analytics.
In the context of your Company’s IT environment, Your Company’s Internal Audit processes are certified
systems and policies relating to Information as complying with ISO 9001:2015 Quality Standards.
Management are periodically reviewed and Further, systems and processes are in accordance
benchmarked for contemporariness. Compliance with the Standards on Internal Audit (SIA) issued by
with the Information Management policies receives The Institute of Chartered Accountants of India.
focused attention of the Internal Audit function.
The Audit Committee of your Board met seven times
With the increased importance of information security, during the year. The Terms of Reference of the
cyber security and adoption of emerging technologies, Audit Committee, inter alia, include reviewing the
focused reviews are carried out for IT applications effectiveness of the internal control environment,
and processes across Businesses. These primarily evaluation of your Company’s internal financial
focus on assessment of controls pertaining to controls, and risk management systems, monitoring
confidentiality, integrity and availability of business implementation of the action plans emerging out of
information and systems covering General IT Controls review of significant Internal Audit findings including
and security of your Company’s IT Infrastructure. those relating to strengthening of your Company’s risk
All critical Business-led Information Technology management systems and discharging of statutory
systems undergo pre-implementation audit before mandates. Material observations (as defined in Terms
being deployed in the operating environment, thereby of Reference) are reviewed at the highest level by the
delivering assurance with respect to the rigour of Audit Compliance and Review Committee (ACRC)
implementation and operational readiness of the and the Audit Committee.
proposed systems.
HUMAN RESOURCE DEVELOPMENT
The scope and coverage of Internal Audit continues
to remain contemporary and includes, inter alia, The talent management strategy of your Company
assessment of emerging risks in the social media focuses on sustaining ITC’s position as one of India’s
ecosystem, cloud infrastructure, robotic process most valuable corporations, remaining customer-centric,
automation, information technology-operational nimble and performance driven whilst continuing with
technology (IT-OT) integration and protection of its mission of building a responsible ‘Future-Tech’
sensitive personal data and information. enterprise. Your Company’s thought, strategy and
action are inspired by a larger purpose of being an
Qualified engineers in the Internal Audit function
exemplary Indian enterprise that not only pursues
review the quality of design, planning and execution of
agile innovation for competitive advantage, but also
all ongoing projects involving significant expenditure
embeds sustainability and inclusiveness at the
to ensure that project management controls are
core of its Businesses. This approach has enabled it
adequate and yield ‘value for money’. Internal Audit
to create enduring value for the Indian economy and
continues to use state-of-the-art tools and software for
the larger community of stakeholders, while
conducting project audits.
delighting consumers with a vibrant portfolio of
Your Company’s Internal Audit function has best-in-class products and services. Your Company’s
implemented a ‘hybrid’ audit approach, involving a employees relentlessly strive to deliver world-class
combination of onsite and offsite audits, to further performance, foster team spirit and discharge their
enhance productivity and optimise costs. Processes role as ‘trustees’ of all stakeholders. Your Company is
in the Internal Audit function are continuously committed to perpetuating this vitality – its growth as
strengthened for enhanced effectiveness and a value generating engine and also as an exemplary

institution – so that it continues to succeed in its technology companies rationalising their workforce
relentless pursuit of creating enduring value. and global entities experiencing growth challenges
in certain primary markets. Your Company’s unique
Your Company’s Human Resources development
employer equity as an exemplary Indian enterprise
approach spans four key organisational dimensions of
creating world-class brands, building business leaders
Agility, Alignment, Ability and Architecture which are
and generating economic, social and environmental
supported through strategies crafted in areas of impact
capital for the Indian economy, continues to play a
such as talent acquisition, engagement, diversity &
vital role in the attraction and retention of high-quality
inclusion, capability building, employee relations,
talent. The management trainee programme,
performance & rewards and employee well-being.
augmented with recruitment of experienced talent
The initiatives and processes of your Company
from the market, is an integral part of the leadership
strive to deliver the unique talent promise of Building pipeline development process. Your Company
Winning Businesses, Building Business Leaders continues to draw the finest management, technical
and Creating Value for India. The talent development and commercial talent from premier institutions
practices help create, foster and strengthen the in the country and is ranked amongst the leading
capability of human capital to deliver critical outcomes companies in these institutions. Intensive engagement
on the vectors of strategic impact, operational with the country’s premier academic institutions
efficiency and capital productivity while reimagining over the years to communicate your Company’s
consumer experience, driving business model talent proposition through case-study competitions,
transformation and enhancing employee experience. knowledge-sharing programmes by senior managers
Your Company’s ‘Strategy of Organisation’ is and the annual internship programmes have all
designed to promote agility through a culture and contributed to creating a compelling proposition for
the best candidates to aspire for a career with your
practice of distributed leadership enabled by a
Company. Your Company continues to enthuse talent
three-tier governance structure. This is manifested
with high-impact roles, competitive and performance
in market and consumer facing Businesses, which
driven remuneration with an emphasis on long-term
are driven by empowered, cluster-based teams
incentives, a wealth of learning opportunities, a
and supported by shared assets and capabilities,
commitment to enhancing diversity, equity & inclusion,
enabling strategic relevance, speed, responsiveness,
an employee-centric climate, well-being focused
and operational excellence. This approach allows
infrastructure and support that promotes fellowship
Businesses, through their Management Committees,
and commitment amongst employees.
to focus, develop and execute Business Plans
relevant to their product-market spaces while Your Company’s talent development approach
leveraging the institutional strengths of your Company is founded on the belief that learning initiatives
and harvesting internal synergies. must remain synergistic and aligned to business
outcomes. Towards this end, your Company has
While the year under review witnessed recovery from built a culture of continuous learning, innovation and
the pandemic, geopolitical developments and volatility collaboration. Your Company provides managers
in the macro-economic environment impacted the with contemporary and relevant learning and
overall talent market. Workforce readjustment, development support through a combination of
moderation of start-up opportunities, flexible work classroom programmes, on-the-job assignments,
configurations, increased female participation in the self-paced e-learning modules and application projects
workforce and a growing focus on reskilling were with emphasis on experiential learning and exposure
some of the year’s defining developments. Industry to nationally and globally renowned faculty. Deep
attrition levels, which witnessed significant increase functional expertise is fostered early in one’s career
during the year, are expected to soften with global through immersion in complex problem-solving

assignments requiring the application of domain In the spirit of continuous improvement, your
expertise. Managers are assessed on your Company maintains a practice of periodically
Company’s behavioural competency framework and assessing employee engagement through a
provided with learning and development support to Company-wide survey. The recent survey in 2022
address areas identified for improvement. Key talent affirms high levels of employee engagement and
is provided critical experiences in high-impact roles reflects significant consolidation of gains achieved
and mentored by senior managers, promoting the over recent years. The employee engagement,
development of a steady pool of high-quality talent. managerial effectiveness and performance
Your Company has identified three capability enablement indices have all improved, ranging from
platforms relevant to making Businesses future-ready – 7 to 12 percentage points since the survey’s inception
Business Critical Strategic Competencies, Leadership in 2016. Employees have expressed overwhelming
Development and Organisation Identity & Pride. appreciation on several dimensions with over 90%
Capability needs, vitally significant to competitive of employees reporting a deep sense of pride, belief
performance, are identified for talent cohorts across in your Company’s overarching goals & leadership
domains. These include Marketing Strategy, and optimism for the future. These sentiments are
Data Science and Analytics, Marketing in a Digital reflected in your Company’s superior standing
world, Business Strategy and Commercial Acumen. in terms of voluntary attrition across Businesses.
Globally benchmarked curriculums are designed During the year, a range of engagement
in these domains, delivered through internationally programmes were undertaken including initiatives
renowned faculty and supplemented with such as leadership outreach through extensive
business-critical application projects. Similarly, communication, recognition programmes
as a part of leadership development initiatives, acknowledging exceptional contributions of employees
the Reflections 360 programme comprising feedback and teams, career conversations and development
from team members, peers and managers enables planning for robust positioning and progression
personal development of employees. This approach, decisions and investments in employee wellbeing.
collectively ensures relevance and impact, thereby The year witnessed the Hotels Business winning
enhancing the capability index of your Company’s the W.E. Global Employees Choice Award 2022
human capital. Periodic induction programmes, by W.E.-Matter involving participation of
anchored by senior leaders, are conducted to appx. 1000 managers.
enable new entrants to appreciate your Company’s
Your Company’s efforts to enhance Diversity,
Vision, Mission, Culture, Values and Strategies while
Equity and Inclusion are founded on the conviction
fostering pride in affiliation with your Company.
that a diverse workforce contributes to rich discourse,
Your Company continues to strengthen its promotes holistic perspectives, fosters creative
performance management system and its culture of solutions and is integral to serving customers
accountability through the widespread adoption of the better while creating value for all stakeholders.
system of Management-by-Objectives. Performance Your Company’s policy on Diversity, Equity and
planning through clearly defined goals, outcome-based Inclusion articulates and institutionalises this
assessment, and alignment of rewards for conviction. Your Company is committed to
achievement of results have all contributed to a enhancing gender diversity and participation of the
robust culture of ownership and accountability. differently-abled in the workforce. Such concerted
‘Career Conversations’ and succession planning actions span three vectors, namely:
processes have contributed to helping employees
– Representation
realise their potential, craft their careers while
recognising their strengths and areas of development – Inclusion & Enablement
and ensuring a sound workforce planning system. – Commitment and Assurance

Measures to enhance diversity include ensuring building a robust platform which has aided the
sufficient representation of women in selection conclusion of collective bargaining agreements at
pools and deployment of the differently-abled several of its manufacturing units and hotel properties,
across suitable opportunities in the value chain. ensuring smooth commencement of operations at
Through progressive policies offering flexible work greenfield locations and the execution of productivity
arrangements, extended child-care leave, travel improvement practices.
support for infants and care-givers, secure transport,
WHISTLEBLOWER POLICY
paternity leave, same gender partner medical
benefits, infrastructure support coupled with various Your Company’s Whistleblower Policy encourages
sensitisation programmes, Employee Resource Directors and employees to bring to your Company’s
Groups, development interventions tailored for attention, instances of illegal or unethical conduct,
women talent, and the commitment and sponsorship actual or suspected incidents of fraud, actions that
of leaders; your Company provides an enabling affect the financial integrity of your Company, or actual
environment to further its Diversity, Equity and or suspected instances of leak of unpublished price
Inclusion goals. To ensure a safe and progressive sensitive information that could adversely impact your
work environment, Internal Complaints Committees Company’s operations, business performance and/
have been institutionalised as per provisions of or reputation. The Policy requires your Company
the Sexual Harassment of Women at Workplace to investigate such incidents, when reported, in an
(Prevention, Prohibition and Redressal) Act, 2013. impartial manner and take appropriate action to
ensure that the requisite standards of professional
Your Company continued its practice of active
and ethical conduct are always upheld. Anonymous
leadership outreach to employees. Periodic complaints are also entertained if the complaint
communication with the ITC community through sets out specific allegations & verifiable facts, and
‘StudioOne Townhalls’ led by the Chairman, provided is accompanied with supporting evidence. It is your
employees avenues to hear from and engage with Company’s Policy to ensure that no complainant is
leaders about your Company’s vision, strategy and victimised or harassed for bringing such incidents
milestones. This was supplemented by a more to the attention of your Company, and to keep
personalised engagement through the ‘StudioOne the information disclosed during the course of
Xchange’ initiative. The Chairman and other members the investigation as confidential. The practice of
of the Corporate Management Committee interacted the Whistleblower Policy is overseen by the Audit
with managers across Businesses in small groups, Committee and no employee was denied access to the
sharing your Company’s vision and strategies Committee during the year. The Whistleblower Policy
while also inviting suggestions and feedback. Your is available on your Company’s corporate website
Company believes that alignment of all employees at https://www.itcportal.com/whistleblower-policy .
to a shared vision and purpose is vital for winning in
the marketplace. It also recognises the mutuality of SUSTAINABILITY 2.0
interests with key stakeholders and is committed to Your Company believes that when enterprises
continue building harmonious employee relations. make societal value creation an integral part of their
Your Company remains dedicated to an Employee corporate strategy, powerful drivers of innovation
Relations climate of partnership and mutuality while emerge that make growth more enduring for all
ensuring operations are competitive, flexible and stakeholders. This paradigm is called ‘Responsible
responsive. The Employee Relations philosophy of Competitiveness’ - an abiding strategy that focuses
your Company, anchored in the tenets of Scientific on extreme competitiveness but in a manner
Management, Industrial Democracy, Human Relations that replenishes the environment and supports
and Employee Well-being, has contributed towards sustainable livelihoods.

Your Company’s innovative business models Climate Change

synergise the building of economic, environmental – Enhancing the share of renewable energy usage to
and social capital, thus embedding sustainability 50% of total energy consumption by 2030.
at the core of its corporate strategy. Today, this
– Meeting 100% of purchased grid electricity
strategy has not only contributed to building strong
requirements from renewable sources by 2030.
businesses of the future as well as a portfolio of
winning world-class brands, but also in making your – Reducing specific energy consumption by 30%
and specific GHG emissions by 50% by 2030 as
Company a global exemplar in ‘Triple Bottom Line’
compared to the FY 2018-19 baseline.
performance. Your Company is the only enterprise
in the world of comparable dimensions to have – Sustain and enhance carbon sequestration
achieved and sustained the three key global indices of by expanding forestry projects on wastelands
environmental sustainability of being ‘water positive’ through your Company’s Social and Farm Forestry
programme and other such initiatives covering
(for 21 years), ‘carbon positive’ (for 18 years),
over 15 lakh acres by 2030.
and ‘solid waste recycling positive’ (for 16 years).
This approach has enabled your Company and its Water Stewardship
businesses to support sustainable livelihoods for more – Achieving 40% reduction in specific water
than six million people. consumption by 2030 as compared to the
FY 2018-19 baseline.
Your Company is actively working towards
Sustainability 2.0, an agenda which reimagines – Creation of rainwater harvesting potential
sustainability under the pressing challenges of equivalent to over 5 times the net water
climate change and social inequity. Sustainability 2.0 consumption by 2030.
calls for inclusive strategies that can support – Certification of all sites in high water stressed
sustainable livelihoods, pursue newer ways to fight areas as per the international water stewardship
climate change, enable the transition to a net zero standard by Alliance for Water Stewardship (AWS)
economy, work towards ensuring water security by 2035.
for all and create an effective circular economy for – Improve crop water-use efficiency in agri-value
post-consumer packaging waste. It also entails chains through demand side management
protecting and restoring biodiversity and ecosystem interventions and enable savings of 2000 million kl
services through adoption of nature-based solutions. of water by 2030.
Your Company believes that agility in thought and Plastic Waste and Circular Economy
action, meaningful public-private-people
– 100% of your Company’s Packaging to be
partnerships and Responsible Competitiveness Reusable, Recyclable or Compostable/
will act as core enablers of this new agenda. Biodegradable by 2028.
Your Company has the potential to make a large-
Sustainable Agriculture
scale impact not only from an economic standpoint,
but also from an employment generation and social – Promote climate smart village approach in core
enablement lens because of its presence across Agri Business catchments covering over 3 million
acres by 2030.
several critical sectors of the economy. With its bold
Sustainability 2.0 agenda, your Company is setting Biodiversity Conservation
the bar higher and remains committed to making – Revive & sustain ecosystem services and
meaningful contribution to the Nation’s future while products provided by nature, through adoption
retaining its status as a sustainability exemplar. of nature-based solutions and biodiversity
The Sustainability 2.0 ambitions include: conservation covering over 1 million acres by 2030.

Sustainable Livelihoods line with ‘In Accordance – Comprehensive’ criteria

of the GRI standards and is third-party assured to
– Supporting sustainable livelihoods for 10 million
‘Reasonable Level’ as per International Standard on
people by 2030.
Assurance Engagements (ISAE) 3000.
Your Company’s Businesses are actively working
Your Company’s Sustainability Report for FY 2022-23
towards achieving your Company’s Sustainability
is being prepared and will be made available on your
2.0 vision. During the year, around 43% of your
Company’s corporate website in due course.
Company’s total energy requirements were met
from renewable sources. Commendable progress In addition, the Business Responsibility &
has been made in line with 2030 targets relating to Sustainability Report (BRSR), as mandated by the
specific energy, specific GHG emissions and specific Securities and Exchange Board of India (SEBI) for
water consumption across Businesses. In line with the year under review is annexed to the Report
its commitment, your Company continued to remain and Accounts. The BRSR maps the sustainability
plastic neutral during FY 2022-23 by sustainably performance of your Company against the nine
managing more plastic packaging waste than the principles forming part of the National Guidelines on
amount of plastic packaging utilised. During the Responsible Business Conduct (NGRBC) issued by
year, your Company’s large-scale programmes on the Ministry of Corporate Affairs, Government of India.
Sustainable Agriculture were augmented to cover During the year, your Company sustained its ‘AA’
2.3 million acres. A detailed performance dashboard rating by MSCI-ESG for the fifth consecutive year,
against 2030 commitments is available in your the highest rating among global tobacco majors,
Company’s Sustainability Report, 2023. and has also been included in the Dow Jones
To achieve its Sustainability 2.0 vision, your Sustainability Emerging Markets Index for the third
Company continues to strengthen its management year in a row. Additionally, your Company was rated
approach which is guided by a comprehensive set ‘A-’ at Leadership Level for both Climate Change and
of sustainability policies and is being implemented Water Security by CDP, which is above the Asia and
across the organisation. Your Company is also Global average of ‘C’ for climate change and ‘B’ for
strengthening the mechanisms of engagement water security.
with key stakeholders, identification of material Contribution to the United Nations Sustainable
sustainability issues and progressively monitoring Development Goals (UN SDGs)
and mitigating the impacts along the value chain of
Your Company’s Sustainability strategies and Social
each Business. Your Company will continue to update
Investment Programmes & interventions, in addition
these systems and processes in line with evolving
to their alignment with national priorities, are also well
disclosure standards and Environmental, Social and
positioned to contribute to the achievement of India’s
Governance (ESG) requirements.
commitment under the UN SDGs. For instance, your
Your Company’s 19th Sustainability Report published Company’s programme on Climate Smart Agriculture
during the year detailed the progress made across all is aligned to the Government’s National Mission for
dimensions of the ‘Triple Bottom Line’ for FY 2021-22. Sustainable Agriculture, and also contributes
This report was prepared in conformance with both to the achievement of multiple SDGs, including
the Global Reporting Initiative (GRI) standards and SDG 13 (Climate Action), SDG 15 (Life on Land),
International <IR> Framework published by Value SDG 1 (No Poverty) and SDG 2 (Zero Hunger).
Reporting Foundation. The report presents a range of A comprehensive statement linking your Company’s
financial and non-financial disclosures to illustrate how interventions to the SDGs including corresponding
different ‘capitals’ are deployed to enable creation of targets will be available in your Company’s
enduring value. In addition, the report is prepared in Sustainability Report for FY 2022-23.

Building Climate Resilience chains. These risk assessments help further calibrate
the climate resilience measures that are being
Your Company recognises the urgent need to combat
implemented across your Company’s value chains.
climate change for building a more secure future and
the role it can play in enabling a net-zero economy.
Energy Conservation and Renewable Energy
To address the risks of climate change, your
Company is pursuing a low carbon growth strategy As a responsible corporate citizen, your Company has
through extensive decarbonisation programmes made a commitment to reduce dependence on energy
across its value chain. These include increasing the from fossil fuels. Accordingly, all factories incorporate
share of renewable energy, continuous reduction appropriate green features and premium luxury hotels
of specific energy, construction of green buildings, and office complexes continue to be certified at the
greening logistics & optimising distance-to-market, highest level by either the USGBC or Indian Green
and promoting regenerative agriculture practices in Building Council (IGBC). During the year, around
agri-value chains. Your Company is also conducting 43% (previous year: 42%) of your Company’s total
life-cycle analysis (LCA) studies for developing a energy requirements were met from renewable
portfolio of innovative and sustainable products in sources such as biomass, wind and solar. As on date,
line with growing consumer preference for climate your Company has installed and commissioned
friendly products. 178 MW of renewable energy capacity in the form of
solar and wind power across the country. Additionally,
Additionally, in order to identify long-term physical your Company’s Paperboards & Specialty Papers
risks of climate change, your Company is working with Business commissioned a state-of-the-art and
climate experts to conduct comprehensive climate future-ready High Pressure Recovery Boiler at the
risk and vulnerability assessments using climate Bhadrachalam mill, replacing conventional soda
models across its operating locations (factories, hotels recovery boilers, which will contribute towards reducing
and warehouses). These assessments consider carbon footprint through lower coal consumption.
impact of climate hazards related to changes in
temperature, precipitation, sea level rise, flooding Your Company is well positioned to benefit from
and other extreme weather events over different time energy conservation and renewable energy promotion
frames under various Representative Concentration schemes such as Perform, Achieve and Trade (PAT)
Pathways (RCP)/Shared Socioeconomic Pathways and Renewable Energy Certificates (RECs) promoted
(SSPs) scenarios. Based on the findings of these by the Government of India. Your Company continues
assessments, detailed site-specific studies are its efforts towards meeting 100% of purchased grid
electricity requirements from renewable sources,
undertaken for developing contextual location-specific
and achieving 50% renewable energy share in
adaptation plans and strategies.
its total energy consumption by 2030 based on a
Similarly, factors such as rise in extreme weather mix of energy conservation and renewable energy
events, varying climatic parameters and dependence investments, despite significant enhancement in its
on rainwater for irrigation make agriculture in India scale of operations going forward.
quite vulnerable to climate change. For major crops
like wheat, pulp-wood and leaf tobacco among others, Greenhouse Gases (GHG) and Carbon Sequestration
there is significant and sustained work being done by
The GHG inventory of your Company for FY 2022-23
your Company on the development of climate-tolerant
compiled according to the ISO 14064 Standard
varieties as well as dissemination of climate-resilient and
has been assured, as in the earlier years, at the
regenerative agronomic practices in the growing areas.
‘Reasonable Level’ by an independent third party.
Detailed farm-level studies have also been conducted The GHG inventory covers emissions from your
to understand the potential adverse impacts of Company’s operations and GHG removals from your
climate change on your Company’s key agri-value Company’s large-scale forestry programmes.

Your Company’s Social and Farm Forestry initiatives, rainwater harvesting potential (RWH) of 48.9 million kl.
besides sequestering carbon from the atmosphere, In total, nearly 50 million kl of rainwater has been
help towards greening of degraded wasteland, prevent harvested, including within the fence, which is over
soil erosion, enhance organic matter content in soil 3 times the net water consumed by your Company’s
and increase ground water recharge. operations in FY 2022-23.
Towards Water Security for All During the year, your Company’s Foods unit at Malur
became the first foods processing facility in Asia to
With water scarcity increasingly becoming an area of
be awarded the AWS Platinum level certification, the
global and national concern, your Company continues
highest recognition for water stewardship in the world.
to focus on an integrated water management
Your Company is in the process of implementing the
approach that includes water conservation and
AWS Standards at other units in high water stress
harvesting initiatives at its units – while at the same
areas and will progressively obtain AWS certification
time working towards meeting the water security
needs of all stakeholders at the local watershed for these sites.
level. Several interventions have been rolled out to
Pioneering the Green Building Movement in India
improve water-use efficiencies such as adopting latest
technologies and increasing reuse and recycling In order to continuously reduce your Company’s
practices within the fence while also working with energy footprint, green features are being integrated
farmers and other community members towards in all new and old constructions including hotels,
improving water-use efficiencies. manufacturing units, warehouses and office
Demand side management is a critical component complexes. Your Company is a pioneer in the green
of your Company’s Water Stewardship programme. building movement, with 40 buildings having received
Recognising the critical imperative of reducing Platinum certification by USGBC/IGBC.
water use, especially in agriculture, your Company Several of your Company’s factories and office
continues to work with farmers to achieve ‘more crop complexes have received the Green Building
per drop’ and improve farmer incomes. Over 11.8 lakh certification from IGBC and the Leadership in Energy
acres have been covered till date across 12 states
& Environmental Design (LEED) certification from
through micro irrigation technologies and crop-specific
USGBC. In 2004, the ITC Green Centre at Gurugram
agronomical practices. Various studies indicate
received LEED Platinum certification by USGBC,
potential water savings to the tune of 780 million kl
making it the largest Platinum rated building in
during the year.
the world at that point in time. The data centre at
The demand side measures are implemented along Bengaluru, ITC Sankhya, is the first data centre in
with augmenting supply at the sub-catchment level the world to receive the LEED Platinum certification
through various interventions focused on harvesting by USGBC. Large infrastructure investments such as
rainwater based on the recommendations of the ITC Green Centre at Guntur and the ITC Green
hydro-geological studies. The supply side Centre at Bengaluru (both LEED Platinum certified)
interventions include enhancing capture and
continue to demonstrate your Company’s commitment
storage of rainwater (within soil surface and storage
to green buildings. Virginia House, Kolkata and ITC
structures) and recharging aquifers. Your Company
Centre, Kolkata – the headquarters of your Company,
also conducts efficacy studies to assess the impact
are also certified at the highest ‘LEED Platinum’ rated
of the watershed work carried out, and to ensure that
Green Building by USGBC.
maximum benefits accrue in the long-term. As on
31st March, 2023, your Company’s integrated Reaffirming your Company’s commitment to the
watershed development projects covering over ethos of ‘Responsible Luxury’, all luxury collection
1.47 million acres of land have created a total hotels of your Company are LEED Platinum certified,

making your Company a trailblazer in green Your Company has successfully implemented multiple
hoteliering globally. ITC Grand Chola, the 600-key large-scale models of solid waste management
super-premium luxury hotel complex in Chennai, is across the country. These models, based on
amongst the world’s largest LEED Platinum certified principles of circular economy, are scalable,
green hotels. replicable and sustainable, and have enabled your
In 2020, ITC Windsor’s best practices on carbon Company to sustain its plastic neutral status since
management distinguished it as the first hotel in FY 2021-22. The approach is centred around treating
the world to be LEED Zero Carbon certified. Since waste as a resource and ensuring that minimal waste
then, 11 additional ITC Hotels have been certified goes to landfill, which can be achieved only when
as LEED Zero Carbon. Further, your Company’s waste is segregated at source. The initiatives focus on
Sankhya data center in Bengaluru became the first educating citizens on segregating waste at source
data center in the world to be awarded the LEED Zero into dry & wet streams, ensuring that value is derived
Carbon certification. from these resources and, in the process, support
sustainable livelihood for waste collectors. These
Enabling a Circular Economy models operate on a public-private partnership basis
Your Company continues to make significant with active involvement of urban local bodies, civil
progress in improving the circularity of waste society and the informal sector of waste collectors.
generated in operations. The focus is on reducing Your Company has exceeded its commitment on
waste through constant monitoring, improvement of plastic neutrality for the second consecutive year
efficiencies in material utilisation and adequate waste by collecting and sustainably managing more than
segregation improving recycling rates. During the 60,000 tonnes of plastic waste across 36 States/Union
year, your Company achieved over 99% recycling of
Territories, which is more than the plastic packaging
waste generated in course of its operations.
utilised by your Company.
This has prevented waste from reaching landfills,
with the associated problems of soil & groundwater Your Company’s waste recycling programme,
contamination and GHG emissions, all of which ‘WOW – Well Being Out of Waste’, enables the
can adversely impact public health. In addition, your creation of a clean & green environment and promotes
Company’s Paperboards & Specialty Papers Business sustainable livelihoods for waste collectors. During
recycled nearly 84,000 tonnes of externally sourced the year, the programme continued to be executed
post-consumer waste paper, thereby creating yet in Bengaluru, Mysuru, Hyderabad, Coimbatore,
another positive environmental footprint. Chennai, Delhi, major towns of Telangana and several
districts of Andhra Pradesh. The quantum of dry waste
Your Company aims to go beyond the requirements
of Plastic Waste Management Rules, 2022 to ensure collected during the year was about 64,000 MT from
that over the next decade, 100% of packaging is over 1,270 wards. The programme has covered over
reusable, recyclable or compostable/biodegradable. 2.2 crore citizens in over 55 lakh households, 57 lakh
Your Company is working towards optimising school children and around 2,100 corporates since its
packaging in a way that reduces the environmental inception. It has promoted sustainable livelihood for
impact arising out of post-consumer packaging waste over 17,750 waste collectors by facilitating an effective
without affecting product integrity. This is being collection system in collaboration with Municipal
addressed in a comprehensive manner by optimising Corporations. The intervention has also created
packaging design, introducing recycled content in over 150 social entrepreneurs who are involved in
packaging, identifying alternative packaging material maximising value capture from the collected dry
with lower environmental impact and supporting waste. In Pune, your Company is supporting a circular
development of suitable end-of-life solutions for economy, based on first-of-its-kind Multi-Layer Plastic
packaging waste. (MLP) collection and recycling programme.

In addition to WOW, a separate community-driven management model involving processing of waste

programme on decentralised Solid Waste generated in temples to provide biogas to the temple
Management (SWM), in collaboration with Swachh kitchens and compost for its gardens. The initiative
Bharat Mission, is operational in 18 districts across has expanded to over 950 temples across Andhra
10 states covering 10.7 lakh new households, taking Pradesh, Uttar Pradesh, Uttarakhand, Tamil Nadu,
the cumulative coverage to 25.3 lakh households. Telangana, Karnataka and Maharashtra.
This programme deals with both wet and dry waste
and focuses on minimising waste to landfill by Promoting Thought Leadership in Sustainability
managing waste at source. Under the programme, To ensure wider adoption of the ‘Triple Bottom Line’
more than 2.6 lakh MT of waste was collected during philosophy across the Industry, your Company
FY 2022-23, out of which around 1.6 lakh MT of wet established the ‘CII – ITC Centre of Excellence
waste was composted, 64,000 MT of dry waste was for Sustainable Development’ (CESD) in 2006 in
recycled, and 87% of the total waste was avoided collaboration with the Confederation of Indian Industry
from being sent to landfills. Further, home composting (CII). The Centre continues to focus on its endeavour
was practiced by over 5 lakh households. to promote sustainable business practices amongst
In Uttar Pradesh, your Company partnered with Indian enterprises. The major highlights during the
Urban Development Department under which over year include the following:
3,100 Government officials from 57 municipalities Climate Change
have been trained on decentralised SWM, thus
– The CII Climate Action Charter was launched
enabling the extension of coverage of decentralised
in September 2022, at the 17th Sustainability
waste management to over 19 lakh households.
Summit. The Charter has more than 150
Your Company had also signed an MoU with
signatories from a wide variety of sectors including
Lohiya Swachh Bihar Abhiyan (LSBA), Rural
hard-to-abate and service sectors, diversified
Development Department, Government of Bihar to
businesses and MSMEs4.
train officials on implementation of decentralised
SWM in 472 villages of Ganga region – India released its Long-term Low Emissions and
(‘Ganga Gram’) across 12 districts of Bihar. During the Development Strategies (LTLEDS) at the UN
year, Panchayat officials of 446 Ganga Gram villages climate conference (COP27) at Sharm El-Shiekh,
were trained through a cascade approach, who then Egypt in November 2022. The Centre was
initiated focused waste management activities nominated by MoEFCC5 as Technical Advisory
in their villages. Unit and the Chair for the Task Force 4 on
low-emission industrial systems. Inputs for
During the year, your Company has also collaborated
the LTLEDS were provided to MoEFCC via
with Department of Drinking Water and Sanitation
consultations with stakeholders under this taskforce.
(DDWS), Government of India, and India Sanitation
Coalition (ISC), FICCI, to develop 36 Gram – The Centre organised three key events at
Panchayats (GPs) across 10 states as Lighthouses, COP 27 – ‘Driving Climate Adaptation & Resilience
demonstrating best practices in sanitation and waste through Nature Conservation’, ‘Aligning Clean Air
management, which will be adopted by other GPs & Climate Actions’ and ‘Energy Storage - Charging
gradually. The partnership is part of the DDWS’s the energy transition for businesses in India’.
plan of creating 75 lighthouse Gram Panchayats – Under India’s G20 presidency, CII is playing the
across India. role of B20 secretariat. The Centre is leading the
The ‘Green Temple’ initiative, powered by work on framing policy briefs under the Taskforce
your Company’s Social Investments programme 4 Micro, Small and Medium Enterprises
‘Mission Sunehra Kal’, is a closed loop waste 5 Ministry of Environment, Forest and Climate Change

on Energy, Climate Change & Resource Efficiency – A national-level dynamic library of solutions
and Action Council on ESG in Business. designed for air pollution was launched in
– The Centre has assisted in preparing GHG August 2022.
inventory and report for the Industrial Processes – Crop Residue Management intervention covering
and Product Use (IPPU) sector for India’s Third 300 villages across 12 districts of Punjab-Haryana
National Communication to the United Nations was carried out - preliminary results show
Framework Convention on Climate Change avoidance of burning on 85% of total intervened
(UNFCCC) on ‘Greening India’s Power Grids’. farmland (appx. 3 lakh acres) in the year 2022.
Circular Economy A report summarising the impacts and learnings of
Crop Residue Management activity was released on
– ‘India Plastics Pact’ (IPP) is a business-led
International Day for Clean Air in September 2022.
initiative to transform the plastics packaging
value chain from linear to circular. IPP is the first Excellence in Sustainability
in Asia and joins a global network of 13 Plastic
– The 17th Sustainability Summit, with the theme of
Pacts. The first IPP Annual Conference was held
Building a Sustainable Tomorrow: Transforming
in September 2022 where ‘India Plastics Pact:
Risks into Opportunities was organised with the
Roadmap to 2030’ was launched.
support of 28 partner organisations.
– 65 companies operating in India have undertaken
ESG Intelligence & Analytics: The Centre
CESD’s Plastic-use Protocol to record, verify and
conceptualised this service to help Indian companies
certify elimination/phasing out of single use plastics.
understand material ESG risks and opportunities and
– The Centre completed work on a study that aims help develop mitigation actions. The service is based
to identify greenhouse gas mitigation strategies on a SaaS-based tool developed by CII CESD with
through Resource Efficiency and Circular Economy support of third-party vendors.
across the cement value chain.
Eco Edge launched by the Centre is aimed at
Biodiversity integrating sustainability in value chains of companies.
– A Memorandum of Cooperation with MoEFCC to Key action areas in 2022 included training, developing
support multi-stakeholder partnership for Wetlands assessment methodology, stakeholder consultations,
Conservation was signed in May 2022, followed by among others.
launch of India Wetland Coalition (IWC).
CORPORATE SOCIAL RESPONSIBILITY (CSR)
– India Business and Biodiversity Initiative (IBBI)
submitted businesses’ recommendations on Post Your Company’s overarching commitment towards
2020 Global Biodiversity Framework to MoEFCC, creating significant and sustainable societal value is
which were used during the COP15 of UN manifest in its CSR initiatives that embrace the most
Convention on Biological Diversity (CBD). disadvantaged sections of society, especially in rural
India, through economic empowerment based on
– IBBI facilitated a National Consultation Group
grassroots capacity building. Your Company has a
on draft Taskforce for Nature related Financial
Disclosure Framework (TNFD), to be launched comprehensive CSR Policy outlining programmes,
in 2023. projects and activities that your Company undertakes
to create a significant positive impact on identified
Air Pollution
stakeholders. All these programmes fall within the
– In all, 101 signatories to the ‘India CEO Forum purview of Section 135 read with Schedule VII of the
for Clean Air’ have committed to take action on Companies Act, 2013 and the Companies (Corporate
air pollution. Social Responsibility Policy) Rules, 2014.

The key elements of your Company’s CSR on inclusive growth and holistic development of
interventions are to: households with women and poor & vulnerable
communities at the core. In addition to being
– deepen engagement in identified core operational
beneficiaries of several programmes, women are
geographies to promote holistic development and
also influencers and active participants in grassroot
design interventions in order to respond to the
institutions. Several progressive women beneficiaries
most significant development challenges of your
also act as change makers in society.
Company’s stakeholder groups.
The Two Horizon approach provides an integrated
– strengthen capabilities of Non-Government
and affirmative response to development with
Organisations (NGOs)/Community Based
Horizon-I focusing on strengthening and sustaining
Organisations (CBOs) in all project catchments for
participatory planning, ownership and sustainability livelihoods of communities (primarily agriculture and
of interventions. allied sector livelihoods) and Horizon-II focusing
on building capabilities and capacities to empower
– drive the development agenda in a manner that beneficiaries for a better life tomorrow.
empowers women and benefits the poor and
marginalised communities in the vicinity of your The footprint of your Company’s CSR projects is
Company’s factories and agri-catchments, thereby spread across 27 States/Union Territories covering
significantly improving Human Development over 300 districts.
Indices (HDI). Your Company’s CSR interventions were conferred
– ensure behavioural change through focus on with three prestigious awards and recognitions during
demand generation for all interventions, thereby FY 2022-23:
enabling participation, contribution and asset – 16th Edition of CII – National Awards for
creation for the community. Excellence in Water Management under the
– strive for scale with impact by leveraging category ‘Beyond the Fence’ for its Ghod River
government partnerships and accessing the most Basin Project.
contemporary knowledge/technical know-how. – FICCI CSR Award for its ‘Ghod River Basin Project’
Your Company’s stakeholders are confronted with under the category ‘Environment Sustainability’ for
multi-dimensional and inter-related concerns, at the Private Sector Companies with turnover of over
core of which is the challenge of securing sustainable ` 3000 crores per annum.
livelihoods. Your Company undertakes periodic – Recognition under ‘Protect and Restore Community
stakeholder engagements in the form of community Water Structures’ category at Water Sustainability
need assessments, impact assessments and Awards by TERI in collaboration with UNDP and
other evaluations. During the year, your Company the International Water Association (IWA).
undertook 66 community engagements across
14 states where your Company’s Social Investments Social Forestry
Programme is being implemented to discuss views
Your Company’s pioneering afforestation initiative
and grievances, if any, of the community members.
through the Social Forestry programme greened over
Additionally, over 26,000 household surveys were
31,000 acres during the year. It is currently spread
taken up in 14 states to estimate the household
across 17 districts in 6 States covering over 4.56 lakh
level gaps that need to be addressed. Accordingly,
acres in nearly 7,000 villages, impacting over 1.76
interventions under your Company’s Social
lakh poor households. Together with your Company’s
Investments programme are appropriately designed to
Farm Forestry programme, this initiative has greened
build capacities and promote sustainable livelihoods.
over 10.4 lakh acres till date, and generated about
Your Company’s Social Investments Programme 190 million-person days of employment for rural
follows the Two Horizon approach that focuses households, including women, poor tribal and

marginal farmers. Integral to the Social Forestry demand management intervention, your Company
programme is the Agro-Forestry initiative including continues to work with farmers to achieve ‘more crop
plantations on bunds, which cumulatively extends per drop’ by promoting agronomic practices and micro
to about 2 lakh acres and ensures food, fodder and irrigation techniques targeted towards saving water
wood security. Further, fast growing, high yielding in cultivation and improving farmer incomes. Around
and disease resistant hybrid clones and saplings of 11.8 lakh acres have been covered across 12 states
eucalyptus pulpwood developed by your Company during the year as part of demand management;
deliver significantly higher productivity vis-a-vis earlier more than twice that of the previous year. Studies
clones. The clones have been developed to grow have been conducted by Vasantdada Sugar Institute
under varying ecological conditions, thereby building and Tamil Nadu Agricultural University to estimate
resilience and contributing towards increasing income water savings in sugarcane, coconut and banana in
for the farming community. your Company’s programme locations. According to
these studies and other research documents, demand
Besides enhancing farm level employment, generating
management practices promoted by your Company
incomes and increasing green cover, this large-scale
have led to potential water savings to the tune of
initiative also contributes meaningfully to the nation’s
nearly 780 million cubic metres during the year.
endeavour to create additional carbon sinks for
tackling climate change. Additionally, your Company is continuing partnerships
with multiple state government departments for
In addition to the above, the Social and Farm Forestry
Water Stewardship. Under the partnership with
initiative of your Company, through a multiplier effect,
Watershed Development Department, Government
has led to improvement in pulpwood and fuelwood
of Karnataka, capacities are being built using your
availability in Andhra Pradesh, Telangana, Karnataka
Company’s Water Stewardship approach to
and Odisha.
drought-proof 157 watersheds across 29 districts
Water Stewardship Programme covering over 11.6 lakh acres. During the year,
Government officials responsible for all watersheds
The Water Stewardship programme aims to facilitate
were trained to incorporate your Company’s
water security for all dependents in the factory
drought-proofing framework and positive water
catchments and to drought-proof the agri-catchments
balance-based planning. The Government has initiated
to minimise risks to agricultural livelihoods arising
work on 135 watersheds covering 2 lakh acres
from drought and moisture stress. The programme
and has already constructed 818 water harvesting
promotes the development and management of
and ground water recharge structures based on the
local water resources in moisture-stressed areas by
training provided by your Company.
facilitating community participation in planning and
implementing such measures, as well as building, Driven by your Company’s Water Stewardship
reviving and maintaining water-harvesting structures. programme, Malur Food unit of your Company
The coverage of this programme currently extends became the second unit after Kovai Paper to receive
to 45 districts of 16 states. During the year, the area an AWS certification in Platinum category.
under watershed increased by over 1.36 lakh acres,
Biodiversity
taking the cumulative coverage area to over
14.7 lakh acres. Over 3,100 water-harvesting The focus of the programme is on reviving ecosystem
structures including ground water recharge structures services provided to agriculture such as natural
were built during the year, creating nearly 3.8 million regulation of pests, pollination, nutrient cycling,
cubic metres of rainwater harvesting potential. This soil health retention and genetic diversity, which
took the total number of water harvesting structures have witnessed considerable erosion over the past
to over 28,300 and the net water storage to over few decades. During the year, your Company’s
48.9 million cubic meters. In addition, as part of biodiversity conservation initiative covered over

1.5 lakh acres in over 41 districts across 11 states, enable adaptation to climate risks, mitigating the
taking the cumulative area under biodiversity same through knowledge, livelihood diversification,
conservation to over 2.9 lakh acres. While the natural resources management and institutional
conservation work is being carried out in village support. Details of Climate Smart Agriculture
commons, this intervention significantly benefits interventions are also provided in the section on
agricultural activity in the vicinity of these plots ‘Socio-Economic Environment’.
through soil moisture retention, carbon sequestration
During the year, knowledge was disseminated through
and by acting as hosts to insects and birds beneficial
more than 8,200 Farmer Field Schools and over
to agriculture. During the year, two technical studies
2,300 Choupal Pradarshan Khets. Over 900
were undertaken through ‘The Energy and Resources
Agri Business Centres delivered extension services,
Institute’ (TERI) & ‘IORA Ecological Solutions’. These
arranged agri-credit linkages, established collective
studies covered a universe of over 1 lakh acres of
input procurement and provided agricultural equipment
biodiversity conservation work done by your Company
for hire. In pursuit of your Company’s long-term
in two years across seven states. The studies have
sustainability objective of increasing soil organic
recorded improvement in carbon stocks, i.e. carbon
carbon, more than 3,600 compost units were
sequestered by trees, as well as floral and faunal
constructed during the year, taking the total number
biodiversity compared to control areas.
till date to over 55,000 units.
To increase the coverage for pastureland development
Your Company, with its presence across multiple
and biodiversity conservation, your Company
commodities and geographies including e-Choupal
partnered with Forest Departments of Maharashtra
network and agri extension programmes network,
and Telangana, and Wasteland & Pastureland
undertook an initiative to facilitate formation of
Development Board (WPDB) of Rajasthan.
new FPOs and/or strengthening existing FPOs,
The partnership with WPDB is targeted to cover
thus enhancing farm incomes, rural livelihood and
2.5 lakh acres across 8 districts. Further, as part of this
partnering in other relevant rural development
partnership, during the year, 924 Government staff
initiatives. During FY 2022-23, your Company
of these districts were trained for implementing the
supported additional 905 FPOs taking the cumulative
programme across 3,600 villages.
number to 1,150 FPOs.
Climate Smart Agriculture The ‘Adarsh Gram Programme’ pioneered by your
Company’s Agri Business presently covers 350
The Climate Smart Agriculture programme
model villages in the states of Andhra Pradesh
attempts to de-risk farmers from erratic weather
and Karnataka. Under this initiative, your Company
events through the promotion and adaptation of
supports villages to become economically,
climate-smart agriculture premised on dissemination
ecologically and socially sustainable. Your Company
of relevant package of practices, adoption of
is also addressing the human rights and farm safety
appropriate mechanisation and provision of
challenges in Indian farming by educating the farmers,
institutional services. Currently, 23.4 lakh acres
labour & community, providing access to Personal
and over 7.4 lakh farmers are covered under the
Protective Equipment (PPE) kits and adopting smart
programme, representing an increase of 54% and
technologies like drones for spraying activities on
64% respectively over previous year. To provide
the farms.
additional support to farmers in dealing with climate
risks, 9.5 lakh linkages were facilitated for farmers The ‘Baareh Mahine Hariyali’ programme in select
with six major Government schemes. In addition to districts of Uttar Pradesh (Chandauli, Ghazipur,
promotion of Climate Smart Agri practices at scale, Prayagraj and Varanasi) is a pioneering initiative
in core agricultural catchments, Climate Smart Village to facilitate farmers to enhance their incomes.
(CSV) programme has also been initiated, wherein This programme is founded on a 360-degree,
support is provided to majority of village population to multipronged approach with interventions such as

increased cropping intensity with a third crop during productivity and promoting commercial dairy farming
summer, enhancement of productivity through among farmers. During the year, about 84,700 cattle
context-specific agronomic practices demonstrated of over 33,800 dairy farmers across 547 villages in
through Choupal Pradarshan Khets (on-farm 9 districts of Bihar and 3 districts of West Bengal were
demonstrations) and provision of market linkages supported through training programmes on clean milk
with transparency in assessment of quality, price production, mastitis control and animal husbandry
and weighment. In some regions, taking a holistic services like deworming, ectoparasite control, etc.
approach to income diversification as an adjacency,
livestock development, women empowerment and Women Empowerment
agro-forestry are also included. Over 2 lakh farmers During the year, this initiative provided a range of
have already benefited from the interventions under gainful livelihood opportunities to around 35,400 poor
this programme – over 35,000 farmers who have women, taking the cumulative coverage to over
adopted the package of practices reported doubling 1.22 lakh. Of the beneficiaries till date, about 32,600
of income and those who have implemented the ultra-poor women in your Company’s core catchments
programme partially reported increase in their incomes were provided with assets and support to initiate
by 30% to 75%. enterprise of their choice and now have access
to sustainable sources of income through various
Livestock Development
livelihood opportunities. Studies have shown that
The programme provides an opportunity for the income of these ultra-poor women beneficiaries
households to improve their livestock-based has increased by more than five-fold, aided by the
livelihoods by improving productivity of the progeny programme. The financial literacy and inclusion
through breed improvement and dissemination project, in partnership with Madhya Pradesh State
of improved animal husbandry practices. Rural Livelihood Mission (MPSRLM) and CRISIL
The programme provided extension services, including Foundation, was extended for two more years to
breeding, fodder propagation and training to farmers cover 9 additional districts, increasing the operational
owning cows and buffaloes in 8 states and 22 districts. presence in the State to 52 districts. 173 Super
During the year, over 1.35 lakh artificial inseminations Trainers were trained directly who in turn trained
(AIs) were carried out which led to the birth of 0.45 lakh 1,372 Master Trainers; the training was thereafter
high yielding progeny. Cumulatively, the figures for cascaded to over 83,000 self-help-groups (SHGs)
AIs and calving stand at around 28.6 lakh and 10 lakh covering more than 7.6 lakh women during the year.
respectively. In addition, the livestock programme The programme has cumulatively covered over
also covered families engaged in goat and sheep, 2.1 lakh SHGs benefiting over 20.7 lakh women
poultry, piggery and fishery rearing, enhancing across more than 20,800 villages. Over 16.9 lakh
their productivity through promotion of improved trained women have also been provided access
management practices. Under the programme, over to bank accounts and government social security
400 women trained as ‘Pashu Sakhis’ have provided schemes till date.
extension services to over 45,000 households till date,
thus enabling Pashu Sakhis to earn supplementary Education
income of up to ` 5000 per month.
The Primary Education programme aims to provide
Your Company is also working with dairy farmers children from weaker sections of society access
in Bihar and West Bengal to improve productivity to education with focus on learning outcomes and
through several extension services and to facilitate retention. Operational in 32 districts of 12 states, the
higher milk production. Qualified teams comprising programme covered over 2.5 lakh children during the
veterinarians and para-veterinarians have been year, taking the cumulative coverage to over
deployed to facilitate animal breeding, animal nutrition 11 lakh children. Under the Read India Programme,
and animal health services towards improving the proportion of primary level children who were

able to perform basic mathematical computations renovated for households without land, taking
increased from 15% to 90%. Over 386 government the cumulative to 157. Cumulatively, IHHTs and
primary schools and anganwadis were provided community toilets are estimated to be benefiting over
infrastructure support comprising boundary walls, 1.15 lakh community members. In West Bengal, more
additional classrooms, sanitation units and furniture, than 6,700 women benefited from well-maintained
taking the total number of government primary separate community toilets with incinerator facilities.
schools and anganwadis covered till date to around Along with sanitation infrastructure development,
3,300. Infrastructure support to government schools special focus was also given to awareness campaigns
has helped in increasing enrolment, particularly of to drive behavioural change.
girls, in schools. To ensure sustainable operations
Health & Nutrition
and maintenance of infrastructure provided, more than
780 School Management Committees and around Your Company continued to enhance awareness on
680 Child Cabinets and Water and Sanitation various health related issues through a network of
(WATSAN) Committees were operational in various 430 women Village Health Champions (VHCs) who
schools during the year with active involvement of covered nearly 1.16 lakh women and adolescent girls
students and teachers. Further, 125 Supplementary during the year. The programme is operational in
Learning Centres (SLCs) were operational during the seven districts of Uttar Pradesh and three districts of
year, mainstreaming more than 2,000 out-of-school Madhya Pradesh. The VHCs conducted door-to-door
children into the formal education system. visits in the villages focusing on aspects like
sanitation, menstrual and personal hygiene, family
Skilling & Vocational Training planning, diarrhoea prevention and nutrition.
This programme provides training in market linked Over 5.6 lakh beneficiaries were covered under the
skills to youth to enable them to compete in the job Mother and Child Health and Nutrition initiative aimed
market. More than 14,400 youth were trained under at improving the health-nutrition status of women,
different courses during the year of which 46% were adolescents and children in the catchments of a few
female. The placement percentage for those trained of your Company’s factories with high maternal and
during the year stood at 68%. Further, a pilot program infant mortality indices. As per internal estimates, the
for skilling differently abled youth was also initiated in proportion of underweight children between 0-5 years
Bangalore, with placements of over 75%. of age in the two districts of Kamrup and Darrang
stood at 5.6% and 9.8% in FY 2022-23, significantly
Cumulatively, over 1 lakh youth have been trained
lower than districts’ averages6 of 19.7% and 33.1%
under the skilling programme, with presence
respectively. Based on success of the programme
expanding to 34 districts in 16 States.
in these two districts, Directorate of Social Welfare,
Government of Assam has entered into a partnership
Sanitation
with your Company to help address challenges of
Your Company continues to adopt a multi-pronged malnutrition in 8 districts including 7 aspirational
approach towards improving public health and districts in the state.
hygiene across 10 districts and 7 states. To promote
Additionally, Project Samposhan was undertaken
a hygienic environment through prevention of open
during the year to address the issue of anaemia
defecation and reduced incidence of water-borne
amongst adolescent girls in the districts of Bahraich
diseases, 200 Individual Household Toilets (IHHTs)
& Chandauli, Uttar Pradesh. Similarly, Project
were constructed in collaboration with the State
Balposhan was undertaken in Valsad district of
Government/District sanitation departments, taking
Gujarat to create awareness amongst mothers,
the total to over 39,600 IHHTs constructed so far in
pregnant & lactating women on child malnutrition.
your Company’s catchment areas. In addition, during
the year, 35 community toilets were constructed/ 6 as per NFHS-5 data of FY 2019-20

To bridge the gaps in primary and secondary initiatives to aid and enable the country in its fight
healthcare delivery and to address the challenges of against preventable infections that create huge
awareness, availability, accessibility and affordability, economic burden on the country.
your Company has undertaken several Rural
– Your Company launched a campaign focused
Healthcare interventions that are being implemented
on children, rooted in the belief ‘Swasth Bacche,
in a phased manner. After starting with the Mother
Mazboot Desh’. The mission reached out to school
and Child Health initiative in FY 2016-17, your
students through an innovative school programme
Company is now adopting a holistic approach
focused on seeding good hygiene behavior. The
focusing on two major components - preventive school programme covered 8,383 schools reaching
health care and curative services. The objective of out to appx. 22.4 lakh students.
the initiative is to improve health and nutrition by
strengthening institutional capacity, supplementing – Your Company launched the #HandwashFirst
existing infrastructure, promoting greater convergence campaign on the occasion of World Hand Hygiene
with existing government schemes, leveraging Day, which was promoted nationally on TV and
technology and increasing access to basic primary digital media including tie-ups with influencers on
and secondary healthcare services. As part of this the short video platform ‘Josh’.
project, ‘ITC Swaasth Kiran’ initiative was launched – Your Company also launched an innovative
during FY 2021-22 in Saharanpur and Munger digital campaign using gamified creatives to
districts. Under the initiative, 8 Mobile Medical Units spread awareness about proper health & hygiene
(MMU) - 4 each in Saharanpur & Munger became practices to be followed during monsoon season.
operational during the year. These MMUs provided
Your Company joined hands with Master Blaster
free medical consultation and medicines to the rural
Sachin Tendulkar, World’s first ‘Hand Ambassador’,
community at doorstep. During the year, more than
and launched a series of short films to promote
57,000 individual engagements were made with
the practice of washing hands, with the message
community members, 56% of which were women,
being widely disseminated through multiple
across over 690 villages. Further, 6,900 diagnostic
outreach formats.
tests were conducted and 5,600 referrals were made
during the year. Upgradation of Public Healthcare Waste Management
Centres was also initiated with the involvement of the
local community under the initiative. Simultaneously, Your Company’s initiatives focus on creating
plans to set up a 50-bed hospital for secondary care replicable, scalable and sustainable models of
are being pursued. Accordingly, for such ongoing municipal and rural waste management that can
activities, in FY 2022-23, an amount of ` 23.10 crores be implemented across the country to ensure that
has been kept aside under unspent CSR account and zero waste goes to landfills. Details of these models
will be spent over a period of next three financial years. are provided in the section on ’Building a Circular
Economy for Post-Consumer Packaging’ above.
To make potable water available to local communities
in Andhra Pradesh, Reverse Osmosis (RO) water ITC Sangeet Research Academy
purification plants were set up in villages where
The ITC Sangeet Research Academy (ITC SRA),
the water quality was poor. 9 new RO plants were
established in 1977, is an embodiment of your
established in FY 2022-23 taking the total operational
Company’s sustained commitment to a priceless
RO plants to 160, thus providing safe drinking water to
national heritage. Your Company’s pledge towards
over 2.1 lakh rural people.
ensuring enduring excellence in Classical Music
Your Company’s ‘Swasth India Mission’ programme education continues to drive ITC SRA in furthering its
has been a front runner in driving behavioural change objective of preserving and propagating Hindustani
towards good hand hygiene habits since its inception Classical Music based on the age-old principle of
in 2016. The Swasth India Mission drove a range of ‘Guru-Shishya Parampara’. The eminent Gurus of

the Academy impart intensive training and quality and mobilisation skills of NGOs, will continue to
education in Hindustani classical music to the provide innovative grassroot solutions to some of
scholars. The present Gurus of the Academy are India’s most challenging problems of development in
Padma Bhushan Pt. Ajoy Chakrabarty, Padma the years to come.
Shri Pt. Ulhas Kashalkar, Pt. Partha Chatterjee,
Pt. Uday Bhawalkar, Vidushi Subhra Guha, Shri CSR Expenditure
Omkar Dadarkar and Shri Brajeswar Mukherjee. The annual report on Corporate Social Responsibility
The Academy’s focus continues to be on nurturing activities, as required under Sections 134 and 135
exceptionally gifted students selected from across the of the Companies Act, 2013 read with Rule 8 of the
country through a system of multi-level audition. Companies (Corporate Social Responsibility Policy)
Full scholarship is provided to them to reside and Rules, 2014 and Rule 9 of the Companies (Accounts)
pursue music education in the Academy’s campus Rules, 2014, is provided in the Annexure forming part
and in other designated locations under the tutelage of of this Report.
the country’s most distinguished musicians. Creation of
the next generation of masters of Hindustani classical Environment, Health & Safety
music for the propagation of a precious legacy
Your Company’s Environment, Health & Safety (EHS)
continues to be the Academy’s objective.
strategies are directed towards achieving the greenest
Forging Multi-Stakeholder Partnerships and safest operations across all your Company’s units
by optimising natural resource usage and providing a
Your Company’s Social Investments Programme
safe and healthy workplace. Systemic efforts continue
lays continuous emphasis on building partnerships of
to be made towards natural resource conservation by
value for driving innovation & gaining contemporary
continuously improving resource-use efficiencies.
knowledge while effectively amplifying and executing
programmes. Your Company believes that a safe and healthy
work environment is a pre-requisite for ensuring
Your Company formed Knowledge Partnerships
employee well-being, and adopting best practices in
with several national & international organisations/
occupational health & safety bears a direct impact on
agencies to maintain contemporariness and leverage
overall performance. With an aim to percolate safety
latest knowledge/technical know-how to continuously
deeper into ITC’s operational practices and achieve
improve the quality of programmes.
the ‘Zero Accident’ goal, your Company has adopted
Public-Private Partnerships, aimed at pooling a comprehensive EHS strategy founded on two pillars:
resources, and partnership with Governments ‘Safety by Design’ and ‘Safety by Culture’.
are effectively leveraged to scale-up and amplify
Safety
programmes implemented in your Company’s
catchment areas. Your Company sustained focus on ‘Safety by Design’
by continuously striving to improve safety performance
The meaningful contribution made by your Company’s
and incorporating best-in-class engineering standards
Social Investments Programme to address some
for all investments in the built environment. Designs
of the country’s key development challenges, has
for all new greenfield & brownfield project investments
been possible in significant measure, due to your
are scrutinised to ensure compliance with relevant
Company’s partnerships with renowned NGOs such
standards and codes on safety. Periodic Environment,
as BAIF, DSC, FES, DHAN Foundation, MYRADA,
Health & Safety audits continue to be carried
Pratham, SEWA Bharat, WASH Institute, Water for
out in operational units to verify compliance with
People, MAMTA, Youth Invest, Cheshire Disability
relevant standards.
Trust amongst others. These partnerships, which
bring together the best-in-class management practices To drive a culture of safety, your Company, in addition
of your Company and the development experience to comprehensive focus on training, continues to hold

structured conversations with workers on ‘Safe and Research programmes and projects are structured
Unsafe’ Acts. These are supplemented by adoption through close alignment with the various Businesses
of keystone behaviours that inculcates individual of your Company resulting in a robust innovation
ownership for safe behaviour. Your Company has pipeline. Additionally, in line with your Company’s
also pioneered the usage of Design Thinking principles relentless focus on operational excellence and quality,
for seamless integration of safety in business each Business is mandated to continuously innovate
operations. This initiative is bringing in positive on materials, processes and systems to enhance their
behavioural changes. competitiveness.
Several national awards and certifications received by Your Company has been a forerunner in introducing
various units reaffirm your Company’s commitment to first-to-market innovative products for Indian
provide safe and healthy workplace to all. consumers. In the post-pandemic operating scenario
of unprecedented volatility and hyper-inflationary
R&D, QUALITY AND PRODUCT DEVELOPMENT
pressures, LSTC scientists and product development
Your Company’s state-of-the-art Life Sciences and teams continue to enable the Branded Packaged
Technology Centre (LSTC) in Bengaluru is at the Foods and Personal Care Businesses to deliver a
core of driving science-led product innovation to range of differentiated, superior quality products
build and support your Company’s portfolio of at competitive costs. Innovative science-based
world-class products and brands. LSTC is on the programmes continue to be leveraged to drive
verge of completing five decades of innovation this creation of healthier foods through systematic
year. Over the years, LSTC has emerged as a robust reduction in salt, sugar and fat without compromising
innovation engine that is a key enabler of the on sensory attributes. Leading edge technology
‘ITC Next’ growth strategy. Reinforced with
platforms in Personal Health & Hygiene, Health &
world-class infrastructure, resourced with a diverse
Wellness continue to power innovation and develop
team of over 400 highly qualified scientists, LSTC is
next generation product offerings to serve emergent
leading various initiatives to provide a competitive
consumer needs. LSTC’s unique competencies in
edge to your Company’s brands and products.
Materials and Packaging have enabled development
Driving purposeful innovations that fulfil the needs of innovative recyclable flexible packaging options and
of the Indian consumer through superior offerings bio-compostable coating solutions.
remains the key objective of LSTC. Centres of
In Agro-Forestry and Crop Science Platforms, LSTC
Excellence across domains viz. Biosciences,
has an ambitious R&D programme on improving
Agri-sciences & Materials sciences enabled
yield and quality, given the rising challenges of
building capabilities over the years to cater to the
constantly evolving needs of consumers. Focused climate change and depleting resources. Ongoing
research across identified domains viz. Health & research on climate resilient crops and pulp wood
Wellness, Formulation Design, Sustainable Materials seeks to address the security of raw material
& Packaging, Agro-forestry and Crop Science supplies across your Company’s value chains while
has enabled the teams to harness contemporary ensuring enhanced farmer profitability. Research
advances in relevant core areas to translate ‘proofs on wheat and potato varietal securitisation are at
of concept’ to novel product opportunities. Bearing advanced stages of development to achieve
testimony to LSTC’s innovation capabilities while flexibility in sourcing of raw material, create
building the intellectual assets for your Company, region-specific blends and ensure robust agro-climatic
over 800 patent applications have been filed till date. adaptability. Future ready, alternate value chains that
Robust risk management practices are in place to mitigate risks arising out of disruptions to existing
ensure that your Company’s intellectual properties sourcing models continue to be explored. LSTC, in
remain adequately protected and to ensure mitigation collaboration with the Agri and Branded Packaged
of information and infrastructure risk. Foods Businesses, endeavours to ensure that

science-based ideas are fully integrated across the opportunities leveraging your Company’s diverse
value chain from farm to fork. core competencies and R&D insights emerging from
contemporary science & technology.
Infrastructure capabilities across science areas
and new product development are strengthened
PROCEEDINGS INITIATED BY THE
continuously keeping in pace with the global
ENFORCEMENT DIRECTORATE
developments. Modern testing facilities include
estimation of disease resistance in plant varieties, In the proceedings initiated by the Enforcement
determination of biodegradability of newly developed Directorate in 1997, the appropriate authority after
materials for sustainable packaging, detection of hearing arguments on behalf of your Company
extraneous materials in foods and prediction of has passed orders in favour of your Company and
packaged product structural stability during transit. dropped some of the show cause notices issued by
the Directorate. In respect of some of the remaining
Rigorous systems, processes and industry best
notices, your Company filed writ petitions challenging
practices are continuously upgraded to secure quality
their validity. The Honourable Calcutta High Court,
certifications of the highest levels – a key enabler in
by its orders, allowed these writ petitions, and
delivering products that follow the highest standards in
the proceedings in respect of these notices were
quality, safety and efficacy to the Indian consumer. All
quashed. The remaining notices are pending.
branded packaged foods manufacturing units of your
Company not only have ISO quality certification but Meanwhile, some of the prosecutions launched by
also follow the highest standards under the integrated the Enforcement Directorate have been quashed
food quality management system-FSSC 22000; these by the Honourable Calcutta High Court while others
systems ensure adherence to internationally accepted are pending.
quality standards in producing safe and high-quality
food. All manufacturing units of the Branded Packaged TREASURY OPERATIONS
Foods Businesses (including contract manufacturing Your Company’s treasury operations continued
units) and Hotels operate in compliance with stringent to focus on deployment of surplus liquidity and
food safety and quality standards. Your Company’s management of foreign exchange exposures within a
food quality assurance laboratories are accredited by
well-defined risk management framework.
the National Accreditation Board for Testing and
Calibration Laboratories (NABL) under ISO 17025, FY 2022-23 witnessed significant volatility in the
a global standard for testing and calibrating labs, global economy and financial markets. Globally,
which guarantees quality. Additionally, the quality inflation remained at elevated levels for most part of
of all FMCG products of your Company is monitored the year due to disruptions in supply chains, rise in
through best-in-class customer-centric ‘Quality Control energy and other commodity prices. Central banks
and Quality Assurance Processes’ and ‘Product across the world responded swiftly increasing interest
Quality Ratings Systems’ (PQRS) enhancing rates sharply to rein in inflation. In India, Reserve
competitive superiority of your Company’s Bank of India (RBI) raised Repo rate by 250 bps which
product offerings. resulted in market interest rates moving higher across
tenures. In addition, decline in the Banking system
In its quest to continuously enhance efficiency and
liquidity also contributed to increase in market interest
be future-ready, LSTC is developing and deploying
rates, particularly in the short tenure segment.
cutting-edge digital tools for quality performance
analytics and competition benchmarking. LSTC Investment decisions relating to deployment of
continues to leverage AI/ML technology platforms surplus liquidity continued to be guided by the tenets
to strengthen quality management systems. Going of Safety, Liquidity and Return. Treasury operations
forward, LSTC will continue to identify growth focused on proactive rebalancing of portfolio

duration and mix in line with the evolving interest DIRECTORS

rate environment. Further, continuous review and
monitoring of credit worthiness, including engagement Changes in Directors
with market participants, ensured that the investment During the year, with your approval, Mr. Supratim Dutta
portfolio was not exposed to undue credit risks. was appointed as a Wholetime Director of your
As in earlier years, commensurate with the size of Company for a period of three years with effect from
the temporary surplus liquidity under management, 22nd July, 2022, and Mr. Nakul Anand was
treasury operations continue to be supported by re-appointed as a Wholetime Director of your
appropriate internal control systems, and independent Company for a period of one year with effect from
check of 100% of transactions by your Company’s 3rd January, 2023.
Internal Audit Department. Mr. Peter Rajatilakan Chittaranjan, representing the
In the currency market, the Indian Rupee (INR) General Insurers’ (Public Sector) Association of India
depreciated sharply against the US Dollar (US$) (‘GIPSA’), was appointed as an Additional Director by
during the first half of the year. The weakness was the Board of Directors of your Company (‘the Board’)
largely attributable to strength of the US$ relative with effect from 3rd February, 2023 and thereafter, with
to all major currencies during the year. Towards the your approval, as a Non-Executive Director for a period
end of the financial year inversion in US interest of three years with effect from 15th March, 2023.
rate curve, decline in India’s trade deficit, relative The Board on the recommendation of the Nomination
strength of foreign exchange reserves and judicious & Compensation Committee (‘the Committee’),
interventions in the forex market by RBI provided has recommended for the approval of the Members,
support to the INR. the appointment of Ms. Alka Marezban Bharucha as a
To effectively navigate the high volatility in currency Director and also as an Independent Director of your
markets, your Company adopted a proactive risk Company for a period of five years with effect from
management strategy and actively managed foreign 12th August, 2023. Ms. Bharucha has the required
currency exposures through appropriate hedging integrity, expertise and experience for appointment
strategies and market instruments to protect as an Independent Director of your Company.
business margins. Messrs. Anand Nayak and Ajit Kumar Seth will
complete their present term as Independent Directors
DEPOSITS
of your Company on 12th July, 2024. The Board,
Your Company’s erstwhile Public Deposit Scheme on the recommendation of the Committee, has
closed in the year 2000. As at 31st March, 2023, there recommended for the approval of the Members,
were no deposits due for repayment except in respect the re-appointment of Messrs. Nayak and Seth as
of two deposit holders aggregating ` 20000 which Directors and also as Independent Directors of your
have been withheld on the basis of directives received Company for a period of five years with effect from
from the government agencies. 13th July, 2024.
There was no failure to make repayments of Fixed Further, on the recommendation of the Committee,
Deposits on maturity and the interest due thereon the Board has recommended for the approval of the
in terms of the conditions of your Company’s Members, the appointment of Mr. Hemant Malik as
erstwhile Schemes. a Director, liable to retire by rotation, and also as a
Wholetime Director of your Company for a period of
Your Company has not accepted any deposit from the
three years with effect from 12th August, 2023.
public/members under Section 73 of the Companies
Act, 2013 read with the Companies (Acceptance of Mr. Sanjiv Puri will complete his present term
Deposits) Rules, 2014 during the year. as the Managing Director of your Company on

21st July, 2024. The Board, on the recommendation independence of Directors (including Independent
of the Committee, has also recommended for the Directors). The Policy on Board Diversity of your
approval of the Members, re-appointment of Mr. Puri Company requires the Board to have balance of
as a Director, not liable to retire by rotation, and as the skills, competencies, experience and diversity of
Managing Director & Chairman of your Company for a perspectives appropriate to your Company. The
period of five years with effect from 22nd July, 2024. skills, expertise and competencies of the Directors
as identified by the Board, along with those available
Appropriate resolutions seeking your approval to
in the present mix of the Directors of your Company,
the above are appearing in the Notice convening
are provided in the ‘Report on Corporate Governance’
the 112th Annual General Meeting (‘AGM’) of
forming part of the Report and Accounts.
your Company.
In terms of the applicable regulatory requirements
Mr. Rajiv Tandon completed his term as a Wholetime
read with the Articles of Association of your Company,
Director of your Company with effect from close
the strength of the Board shall not be fewer than six
of work on 21st July, 2022 after being associated
nor more than eighteen. Directors are appointed/
with the ITC Group for 42 years, including 35 years
re-appointed with the approval of the Members for
with the Company. Further, Mr. Navneet Doda,
a period of three to five years or a shorter duration,
representing GIPSA, stepped down from the Board
in accordance with retirement guidelines and as
with effect from 20th January, 2023. Your Directors may be determined by the Board from time to time.
place on record their appreciation for the contribution All Directors, other than Independent Directors, are
made by Messrs. Tandon and Doda during their liable to retire by rotation, unless otherwise approved
tenure with your Company. by the Members. One-third of the Directors who are
liable to retire by rotation, retire every year and are
Retirement by Rotation
eligible for re-election.
In accordance with the provisions of Section 152 of
The Independent Directors of your Company
the Companies Act, 2013 (‘the Act’) read with Articles
have confirmed that (a) they meet the criteria of
94 and 95 of the Articles of Association of your
independence prescribed under Section 149 of
Company, Messrs. Sumant Bhargavan and Mukesh
the Act and Regulation 16 of the Securities and
Gupta will retire by rotation at the ensuing AGM and
Exchange Board of India (Listing Obligations and
being eligible, offer themselves for re-election. Your
Disclosure Requirements) Regulations, 2015 (‘Listing
Board has recommended their re-election.
Regulations’), (b) they are independent from the
management of your Company, and (c) they are not
Number of Board Meetings
aware of any circumstance or situation which could
Six meetings of the Board were held during the year impair or impact their ability to discharge duties with
ended 31st March, 2023. an objective independent judgement and without any
external influence. In the opinion of the Board, the
Attributes, Qualifications & Independence of
Independent Directors fulfil the conditions prescribed
Directors and their Appointment under the Act and the Listing Regulations, and are
The Corporate Governance Policy of your Company, independent of the management of your Company.
inter alia, requires that the Non-Executive Directors
be drawn from amongst eminent professionals, Remuneration Policy
with experience in business/finance/law/public Details of your Company’s Policy on remuneration
administration and enterprises. The Nomination & of Directors, Key Managerial Personnel and other
Compensation Committee has laid down the criteria employees are provided in the ‘Report on Corporate
for determining qualifications, positive attributes and Governance’ forming part of the Report and Accounts.

Evaluation of Board, Board Committees and objectivity. Reports on the functioning of Committees
individual Directors were placed before the Board. The Independent
Directors Committee of the Board also reviewed the
The Nomination & Compensation Committee, as
performance of the Chairman, other non-Independent
reported in earlier years, formulated the Policy on
Directors and the Board, pursuant to Schedule IV to
Board evaluation, evaluation of Board Committees’
the Act and Regulation 25 of the Listing Regulations.
functioning and individual Director evaluation, and
also specified that such evaluation will be done by KEY MANAGERIAL PERSONNEL
the Board.
As stated earlier, Mr. Rajiv Tandon ceased to be a
In keeping with ITC’s belief that it is the collective Wholetime Director of your Company upon completion
effectiveness of the Board that impacts Company’s of term, and Mr. Supratim Dutta was appointed as a
performance, the primary evaluation platform is Wholetime Director of your Company, with effect from
that of collective performance of the Board as a 22nd July, 2022. There were no other changes
whole. Board performance is assessed, inter alia, in the Key Managerial Personnel of your Company
against the roles and responsibilities of the Board as during the year.
provided in the Act, the Listing Regulations and your
Company’s Governance Policy. The parameters for AUDIT COMMITTEE & AUDITORS
Board performance evaluation have been derived
The composition of the Audit Committee is provided
from the Board’s core role of trusteeship to protect
under the section ‘Board of Directors and Committees’
and enhance shareholder value as well as to fulfil
in the Report and Accounts.
expectations of other stakeholders through strategic
supervision of your Company; such parameters Statutory Auditors
include securing alignment of your Company’s goals
Messrs. S R B C & CO LLP, Chartered Accountants
with the nation’s economic, ecological and social
(‘SRBC’), were appointed with your approval as the
priorities, ensuring that your Company has a clearly
Auditors of your Company for a period of five years
defined strategic direction for realisation of its vision,
till the conclusion of the 113th AGM. The Board, on
and supporting your Company’s management to
the recommendation of the Audit Committee, has
meet challenges arising from the operating & policy
recommended for the approval of the Members, the
environment in the country. Evaluation of functioning
remuneration of SRBC for the financial year
of Board Committees is based on discussions
2023-24. Appropriate resolution seeking your approval
amongst Committee members and shared by the
to the remuneration of SRBC is appearing in the
respective Committee Chairmen with the Board.
Notice convening the 112th AGM of your Company.
Individual Directors are evaluated in the context of
the role played by each Director as a member of Cost Auditors
the Board at its meetings, in assisting the Board
in realising its role of strategic supervision of the Your Board, as recommended by the Audit
Committee, appointed the following Cost Auditors for
functioning of your Company in pursuit of its purpose
the financial year 2023-24:
and goals. The peer group ratings of the individual
Directors are collated by the Chairman of the (i) Messrs. ABK & Associates, Cost Accountants,
Nomination & Compensation Committee and made for audit of Cost Records maintained by your
available to the Chairman of your Company. Company in respect of ‘Wood Pulp’ and ‘Paper and
Paperboard’ products.
While the Board evaluated its performance against
the parameters laid down by the Nomination (ii) Messrs. S. Mahadevan & Co., Cost Accountants,
& Compensation Committee, the evaluation of for audit of Cost Records maintained in respect of
individual Directors was carried out against the laid all applicable products of your Company, other than
down parameters anonymously in order to ensure ‘Wood Pulp’ and ‘Paper and Paperboard’ products.

Pursuant to Section 148 of the Act read with the are available in the Notes to the Financial Statements
Companies (Audit and Auditors) Rules, 2014, of the Company. The said disclosures forming
appropriate resolutions seeking your ratification to part of the Financial Statements can also be
the remuneration of the aforesaid Cost Auditors are accessed on your Company’s corporate website
appearing in the Notice convening the 112th AGM of http://www.itcportal.com under the section ‘Investor
your Company. Relations’. During the year, there has been no change
Your Company maintains necessary cost records as in your Company’s Employee Stock Option Schemes.
specified by the Central Government under Section Your Company’s Secretarial Auditors have certified
148(1) of the Act read with the Companies (Cost that the Employee Stock Option Schemes of your
Records and Audit) Rules, 2014. Company have been implemented in accordance with
the Regulations and the resolutions passed by the
Secretarial Auditors
Members in this regard.
Messrs. S. N. Ananthasubramanian & Co., Company
Secretaries, were appointed by the Board as the INVESTOR SERVICE CENTRE
Secretarial Auditors of your Company for the financial The Investor Service Centre of your Company (‘ISC’),
year ended 31st March, 2023. The Secretarial registered with the Securities and Exchange Board
Auditors have confirmed that your Company has of India as Category II Share Transfer Agent for
complied with the applicable laws and that there providing in-house share registration and related
are adequate systems and processes in your services, continues to maintain exemplary standards
Company commensurate with its size and scale of of investor servicing, while ensuring compliance with
operations to monitor and ensure compliance with the the applicable statutory requirements.
applicable laws.
The ISO 9001:2015 Quality Management System
The Report of the Secretarial Auditors, pursuant to Certification for investor servicing by ISC was
Section 204 of the Act, is provided in the Annexure renewed during the year by DNV, the accredited
forming part of this Report. agency for ISO certification, for a period of three
years up to 22nd March, 2026. DNV accorded the
CHANGES IN SHARE CAPITAL
highest possible ‘Level 5’ rating to ISC’s systems and
During the year, 10,47,61,810 Ordinary Shares of processes, exemplifying the excellence achieved
` 1/- each, fully paid-up, were issued and allotted by ISC in providing best-in-class services to the
upon exercise of 1,04,76,181 Options under your shareholders and investors of your Company.
Company’s Employee Stock Option Schemes.
A Shareholder Satisfaction Survey was conducted by
Consequently, the Issued and Subscribed Share
the Company during the year with a view to assess
Capital of your Company, as on 31st March, 2023,
stands increased to ` 1242,80,17,741/- divided and further improve the performance standards of
into 1242,80,17,741 Ordinary Shares of ` 1/- each. ISC. Over 49,000 shareholders participated in the
The Ordinary Shares issued during the year rank Survey. Of the same, more than 94% were satisfied
pari passu with the existing Ordinary Shares of with the services provided by ISC, with 80% of the
your Company. shareholders rating the services as excellent. The
feedback/suggestions provided by the shareholders
EMPLOYEE STOCK OPTION SCHEMES are being evaluated for appropriate action.
Disclosures with respect to Stock Options, as required The ‘Investor Relations’ section on your Company’s
under Regulation 14 of the Securities and Exchange corporate website http://www.itcportal.com serves
Board of India (Share Based Employee Benefits and as a user-friendly reference for the shareholders and
Sweat Equity) Regulations, 2021 (‘the Regulations’), investors in respect of share related matters.

RELATED PARTY TRANSACTIONS CONSOLIDATED FINANCIAL STATEMENTS

All contracts or arrangements entered into by your Your Company’s Board of Directors is responsible for
Company with its related parties during the financial the preparation of the consolidated financial statements
year were in accordance with the provisions of the of your Company and its Subsidiaries (‘the Group’),
Companies Act, 2013 and the Listing Regulations. All Associates and Joint Venture entities, in terms of the
such contracts or arrangements, which were approved requirements of the Companies Act, 2013 (the Act) and
by the Audit Committee, were in the ordinary course in accordance with the accounting principles generally
of business and on arm’s length basis. No material accepted in India, including the Indian Accounting
contracts or arrangements with related parties within Standards specified under Section 133 of the Act.
the purview of Section 188(1) of the Act were entered
The respective Boards of Directors of the companies
into during the year under review. Accordingly, the
included in the Group and of its associates and joint
disclosure of Related Party Transactions as required
in terms of Section 134 of the Act read with Rule 8 venture entities are responsible for maintenance of
of the Companies (Accounts) Rules, 2014 in Form adequate accounting records in accordance with the
AOC -2 is not applicable for this year. provisions of the Act for safeguarding the assets of
each company and for preventing and detecting frauds
DIRECTORS’ RESPONSIBILITY STATEMENT and other irregularities; the selection and application
of appropriate accounting policies; making judgements
As required under Section 134 of the Companies Act,
and estimates that are reasonable and prudent; and the
2013, your Directors confirm having:
design, implementation and maintenance of adequate
a) followed in the preparation of the Annual Accounts, internal financial controls, that were operating effectively
the applicable accounting standards with proper for ensuring the accuracy and completeness of the
explanation relating to material departures, if any; accounting records, relevant to the preparation and
b) selected such accounting policies and applied presentation of the financial statements that give a true
them consistently and made judgements and and fair view and are free from material misstatement,
estimates that are reasonable and prudent so as whether due to fraud or error. Such financial statements
to give a true and fair view of the state of affairs of have been used for the purpose of preparation of the
your Company at the end of the financial year and consolidated financial statements by the Board of
of the profit of your Company for that period; Directors of your Company, as aforestated.
c) taken proper and sufficient care for the
OTHER INFORMATION
maintenance of adequate accounting records in
accordance with the provisions of the Companies Compliance with the conditions of
Act, 2013 for safeguarding the assets of your Corporate Governance
Company and for preventing and detecting fraud
and other irregularities; The certificate from your Company’s Statutory
Auditors, Messrs. S R B C & CO LLP, confirming
d) prepared the Annual Accounts on a going concern
compliance with the conditions of Corporate
basis;
Governance as stipulated under the Listing
e) laid down internal financial controls to be followed Regulations, is annexed.
by your Company and that such internal financial
controls were adequate and were operating Going Concern status
effectively; and There is no significant or material order passed during
f) devised proper systems to ensure compliance with the year by any regulator, court or tribunal impacting
the provisions of all applicable laws and that such the going concern status of your Company or its
systems were adequate and operating effectively. future operations.

Annual Return Key Financial Ratios

The Annual Return of your Company is Key Financial Ratios for the financial year ended
available on its corporate website at 31st March, 2023, are provided in the Annexure
https://www.itcportal.com/investor/disclosures-under- forming part of this Report.
SEBI.aspx .
FORWARD-LOOKING STATEMENTS
Particulars of loans, guarantees or investments
This Report contains forward-looking statements that
Details of loans or investments covered under the involve risks and uncertainties. When used in this
provisions of Section 186 of the Companies Act, 2013
Report, the words ‘anticipate’, ‘believe’, ‘estimate’,
are provided in Notes 4, 5, and 9 to the Financial
‘expect’, ‘intend’, ‘will’ and other similar expressions as
Statements. No guarantees were outstanding as at
they relate to your Company and/or its Businesses are
the year end.
intended to identify such forward-looking statements.
Particulars relating to Conservation of Energy and Your Company undertakes no obligation to publicly
Technology Absorption update or revise any forward-looking statements,
whether as a result of new information, future
Particulars as required under Section 134 of the
events, or otherwise. Actual results, performances
Companies Act, 2013 relating to Conservation of
or achievements could differ materially from those
Energy and Technology Absorption are also provided
expressed or implied in such forward-looking
in the Annexure to this Report.
statements. Readers are cautioned not to place
Compliance with Secretarial Standards undue reliance on these forward-looking statements
that speak only as of their dates. This Report should
Your Company is in compliance with the applicable
be read in conjunction with the financial statements
Secretarial Standards issued by the Institute of
included herein and the notes thereto.
Company Secretaries of India and approved by the
Central Government under Section 118(10) of the Act.
CONCLUSION
Employees Your Company’s ‘Triple Bottom Line’ philosophy has
The total number of employees as on 31st March, over the years spurred the creation of innovative
2023, stood at 23,725. business models that synergise the building of
economic, environmental and social capital. It is
There were 282 employees, who were employed
now universally evident that enterprises of the future
throughout the year and were in receipt of
will not only have to be agile, consumer-centric,
remuneration aggregating ` 102 lakhs or more or
innovative and digital-first but also purpose-driven
were employed for part of the year and were in receipt
and responsibly competitive. Your Company’s
of remuneration aggregating ` 8.5 lakhs per month or
superordinate goal of serving larger national priorities
more during the financial year ended 31st March, 2023.
and creating value for all stakeholders has evolved
The information required under Section 197(12) of
into a new paradigm - ‘Responsible Competitiveness’ -
the Companies Act, 2013 and the Companies
that focuses on extreme competitiveness but in
(Appointment and Remuneration of Managerial
Personnel) Rules, 2014 is provided in the Annexure a manner that replenishes the environment and
forming part of this Report. supports sustainable livelihoods.
The strategic Vision of creating multiple drivers of
Dividend Distribution Policy
growth through the pursuit of market opportunities
The Dividend Distribution Policy of your Company that best match institutional strengths, has resulted
may be accessed on its corporate website in the development of strong Businesses of the future
at https://www.itcportal.com/about-itc/policies/dividend- anchored on a portfolio of purpose-led brands,
distribution-policy.pdf . future-ready products and world-class quality. Today,

your Company is the leading FMCG marketer in India, expanded to 8.3x during the same period.
a pre-eminent hotel chain and a globally acclaimed Sharp-focused investments have augmented
icon in green hoteliering, the clear market leader capability in emerging channels such as e-Commerce
in the Indian Paperboards and Packaging industry, and Modern Trade, resulting in strong growth in
a pioneering trailblazer in farmer and rural sales and enhanced market standing. In addition,
empowerment through its Agri Business and a global investments towards accelerating agile and
exemplar in sustainable business practices. In the purposeful innovation, optimising supply chain
last two decades, your Company’s non-cigarettes efficiencies, accelerated digital adoption, and
businesses have grown over 31-fold and presently strategic partnerships have significantly enhanced
constitute over two-thirds of Net Segment Revenue. competitiveness. The impact of these multi-dimensional
At the heart of this transformation lies the power of interventions is evident in the substantial margin
synergy, with seamless access for your Company’s expansion of 620 bps in Segment EBITDA over
new Businesses/initiatives to the deep and varied the last five years even in the face of severe
capabilities resident across different parts of the inflationary headwinds.
enterprise, and its world-class talent pool.
The FMCG Businesses will continue to leverage your
An extensive strategy reset has been undertaken in Company’s institutional strengths as a key source
recent years to architect the structural drivers that of sustainable competitive advantage viz. strong
will power the ITC Next strategy of building a backward linkages with the Agri Business, a deep
Future-Ready, Consumer-Centric, Climate Positive & wide multi-channel distribution network, cuisine
and Inclusive organisation anchored on the knowledge resident in the Hotels Business, packaging
Responsible Competitiveness paradigm. knowhow and the robust R&D platforms nurtured by
LSTC. Structural advantages arising out of distributed
In recent years, the FMCG Businesses have delivered
manufacturing footprint, anchored on state-of-the-art
strong revenue growth along with significant margin
ICMLs strategically located proximal to large
expansion, and are well poised to be rapidly scaled
demand centres, will be increasingly leveraged to
up. Multi-dimensional interventions have been made
drive rapid growth of the FMCG Businesses. With
to strengthen the FMCG Businesses for sustained
enhanced scale and margin expansion, the FMCG
profitable growth. The product portfolio of your
Businesses are expected to make increasingly
Company has been further strengthened in alignment
higher contributions to your Company’s profit
with new opportunities and enterprise strengths
pool, thereby setting the stage for further value
with sharper focus on fortifying the core businesses,
enhancement opportunities.
addressing adjacent opportunities leveraging Mother
Brands and building emerging businesses for the The Agri Business has been a strong backbone
future. To accentuate consumer-centricity, agility and and a key source of competitive advantage for your
enable sharper focus in the context of the growing Company’s FMCG and Cigarettes Businesses. The
scale and complexity of operations, the Branded scope and scale of operations have grown manifold
Packaged Foods Businesses have been reorganised over the years and currently encompass over
into product market centric clusters with integrated 4.5 million tonnes of annual volume throughput in
and empowered teams. Focused interventions 22 states and over 20 agri-value chains. In recent
made in the recent past have also augmented your years, the Business has pivoted its strategic focus
Company’s multi-channel go-to-market capability, towards rapidly scaling up its Value-Added Agri
resulting in manifold expansion in the reach and Products portfolio to accelerate growth and margins.
availability of its products. Over the last five years, With policy enablers in place, your Company is
market and outlet coverage have grown 3.5x and 1.5x developing NextGen agriculture value chains that are
respectively while the network of stockists has digitally enabled and climate smart, and re-structuring

the back-end into a robust network of Farmer drive growth. Investments have been stepped up
Producer Organisations. This will further strengthen to harness the power of Digital to enhance guest
the sourcing network and facilitate the development experience, efficiency and productivity across all nodes
of customised supply chains for traceable and of the value chain. As reported earlier, your Company
identity-preserved sourcing of agri-commodities and remains committed to implement its ‘asset-right’
in augmenting the product portfolio with the addition strategy, focus on sweating existing assets, create
of value-added products such as staples for the Food additional revenue streams and pursue alternate
Service segment, fresh and frozen fruits & vegetables, structures in view of the strong industry recovery
medicinal and aromatic plant extracts etc. Towards witnessed during the year towards engendering the next
enhancing the competitiveness of domestic horizon of growth as also enhancing value creation.
agri-value chains, fostering new business models Your Company’s purposeful innovation engine across
and augmenting value creation opportunities, your the portfolio of Businesses based on deep consumer
Company has launched ITCMAARS – a crop-agnostic insights, superior vectors of differentiation and agile
‘phygital’ full stack AgriTech platform integrating execution capabilities remains a strong source of
NextGen agri-technologies and solutions – to sustainable competitive advantage. The state-of-the-art
seamlessly deliver hyperlocal and personalised Life Sciences & Technology Centre at Bengaluru,
solutions to the farming community whilst creating with its multi-dimensional science-based research
new and scalable revenue streams and strengthening platforms and centres of excellence, powers the
sourcing efficiencies. innovation engine across your Company, and is
The Paperboards, Paper and Packaging Businesses effectively complemented through collaborations and
have made significant progress in recent years partnerships with several prestigious institutions in
in terms of enhanced scale and profitability India and across the world.
improvement. Strategic investments have been Your Company continues to build a dynamic
stepped up in areas such as pulp import substitution, ‘Future-Tech’ enterprise powered by state-of-the-art
proactive capacity augmentation in Value Added digital technologies and infrastructure across the
Paperboards segment, decarbonisation of operations, value chain adding significant impetus to digital
deployment of Industry 4.0 technologies and towards marketing, digital commerce, digital products and
nurturing robust innovation platforms. The focus digital operations. Your Company today, is a pioneer
going forward is to fortify market leadership in the in adoption of cutting-edge digital technologies across
fast growing Value Added Paperboards segment by strategic impact areas spanning Intelligent new-age
augmenting scale, driving cutting-edge innovation to insights that reimagine Consumer Experience,
rapidly scale up single use plastic substitutes as a Business Model Transformation, Smart Operations
new vector of growth, building structural advantage and Employee Experience. Foundational initiatives
through product mix enrichment and scaling up the such as ‘DigiNext’ and ‘Young Digital Innovator’s
use of emergent technologies such as Industry 4.0 to Lab’ are accelerating your Company’s digital journey
enhance operational efficiency, reduce wastage and inculcating a data driven and ‘digital first’ culture
and costs. across the organisation.
The Hotels Business has over the years established a Your Company is actively pursuing its Sustainability 2.0
strong footprint of iconic properties and F&B brands on agenda which calls for inclusive strategies that can
the back of an investment-led growth strategy. In recent support sustainable livelihoods, pursue newer ways
years, the strategy has been reset to pursue an to fight climate change, enable the transition to a net
‘asset-right’ growth path and augment revenue streams zero economy, aid adaptation, work towards ensuring
while simultaneously leveraging your Company’s water security for all and create an effective circular
world-class properties and iconic cuisine brands to economy. With its bold Sustainability 2.0 ambitions,

your Company is setting the bar higher with a and dynamic strategy pillars as aforestated, is well
multi-dimensional contribution to societal value poised to rapidly scale up and enhance its market
creation, and remains committed to making a standing across operating segments.
meaningful impact on the Nation’s future while
The resilience, agility and adaptive capacity
retaining its status as a sustainability exemplar.
demonstrated by your Company is a testament to
Disruptive business models and value propositions the talent, determination and untiring efforts of its
anchored at the intersection of future frontiers of pool of dedicated professionals, associates and
Digitalisation and Sustainability form an integral part partners. Your Company’s diverse talent pool of
of your Company’s strategic roadmap going forward. professional entrepreneurs, ‘proneurs’, have the
NextGen business models such as ITCMAARS in unique opportunity to nurture categories, products and
the agri-ecosystem, tech-enabled cloud kitchens in brands from ideation to execution. This talent pool is
the food service space, sustainable paperboards
being harnessed not only to create winning products
and packaging solutions customised for end-use with
and services for today, but also to seize larger
focus on single use plastic substitutes, are being
opportunities as they emerge from the expanding
piloted/progressed to actualise these opportunities.
horizons of your Company’s Businesses.
Value-accretive acquisitions, joint venture and
collaborations continue to be proactively pursued Your Company’s Board and employees are inspired
towards accelerating growth and value creation. by the Vision of sustaining ITC’s position as one
of India’s most admired and valuable companies,
The global operating environment has become
creating enduring value for all stakeholders, including
increasingly complex, uncertain and volatile. In the
the shareholders and the Indian society. The vision
wake of several upheavals witnessed over the last few
of enlarging your Company’s contribution to the
years, there is now a spectre of ‘permacrisis’ i.e. an
Indian economy is driven by its ‘Nation First: Sab
extended period of crisis from a series of extremely
disruptive events, viz. pandemic, extreme weather Saath Badhein’ credo anchored on the core values
events caused by climate change, geopolitical of Trusteeship, Transparency, Empowerment,
tensions, severe inflationary pressures. This is Accountability and Ethical Citizenship, which are
exacerbated by the phenomenon of ‘polycrisis’, the cornerstones of your Company’s Corporate
signifying simultaneous occurrence of several crises. Governance philosophy.
India remains one of the few bright spots in an Inspired by this Vision, driven by Values and powered
increasingly volatile and unpredictable world. With by internal Vitality, your Directors and employees
structural drivers of growth firmly in place, India is look forward to the future with confidence and stand
firmly positioned to play a larger role on the global committed to creating an even brighter future for
stage going forward. Your Company, with its robust all stakeholders.
On behalf of the Board
S. PURI Chairman & Managing Director

Kolkata
18th May, 2023 S. DUTTA Director & Chief Financial Officer

Annexure to the Report of the Board of Directors
ANNUAL REPORT ON CORPORATE SOCIAL RESPONSIBILITY (CSR) ACTIVITIES OF THE COMPANY
1. CSR Policy - Brief outline and Overview
Brief outline of the CSR Policy:
a.
It is ITC’s Policy to direct its CSR Programmes, inter alia, towards achieving one or more of the following – 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 and sports; and providing relief and
assistance to victims of disasters and calamities.
In pursuit of the above, ITC has identified the following focus areas for its CSR Programmes based on comprehensive
need assessment surveys of its stakeholders:
Create sustainable livelihoods and alleviate poverty through promotion of afforestation, water stewardship,
(i)
sustainable agriculture and climate smart practices, livestock development and women empowerment;
Build capabilities for tomorrow through interventions in education, vocational training, sanitation, school WASH
(ii)
(Water, Sanitation & Hygiene), safe drinking water and waste management;
Promote healthcare, including preventive healthcare, and improve critical nutritional & health status of at-risk
(iii)
population through interventions to strengthen mother & child health, nutritional content, delivery, outreach and
outcomes;
Protect national heritage, art & culture, and preserve & promote music and sports; and
(iv)
(v) Provide relief and assistance to victims of disasters and calamities.
The CSR Policy of the Company may be accessed on its corporate website at https://www.itcportal.com/about-
itc/policies/corporate-social-responsibility-policy.aspx
Role of the CSR and Sustainability Committee:
b.
The role of the CSR and Sustainability Committee is inter alia, to review, monitor and provide strategic direction to
the Company’s CSR and sustainability practices towards fulfilling its triple bottom line objectives. The Committee
seeks to guide the Company in crafting unique models to support creation of sustainable livelihoods together with
environmental regeneration. Formulation and monitoring of the CSR Policy and recommendation of the annual CSR
Action Plan to the Board form part of the role of the Committee.
CSR Programmes / Projects:
c.
The two most important stakeholders for ITC’s CSR programmes / projects are:
Rural communities, primarily in the Company’s Agri Business areas.
Communities residing in close proximity to the Company’s production units.
The Company’s stakeholder profile is varied, calling for an integrated approach to development comprising several
layers of interventions which are summarised below, in line with Schedule VII to the Companies Act, 2013:
i. Promoting Preventive Healthcare, Sanitation & Poverty Alleviation (Schedule VII – i):
Sanitation: Promote a hygienic environment through prevention of open defecation and reduce incidence of
waterborne diseases. The focus of the interventions is on enhancing awareness and impacting behaviour change
on Water, Sanitation & Hygiene (WASH). Facilitate health impacting social and civic infrastructure initiatives
like improved sanitation and hygiene, potable drinking water etc., in the neighbourhood of our catchments.
Health and Nutrition: Focus on preventive aspects through emphasis on maternal and child care (MCH) &
nutrition through awareness and counselling by leveraging institutions like Anganwadis, Asha workers
and network of women Village Health Champions (VHC). Also strengthen healthcare related services
by supplementing primary & secondary infrastructure, upgrade Primary Health Centres (PHC), provide
access to healthcare through mobile services & other interventions, and encourage adoption of effective
nutritional practices.

Waste Management: Create a clean and healthy environment through awareness & behaviour change for
inculcating individual & community responsibility, facilitate source segregation & recycling of dry & wet waste,
and enable sustainable livelihoods for waste collectors.
Poverty Alleviation: Target the needy and poor through interventions that enable income generation, and also
provide access to basic needs like clothing, food, etc., as needed.
ii. Livelihood Enhancement (Schedule VII – ii):
Integrated Animal Husbandry Programme: Enhance incomes of farmers and their families by increasing
productivity of large and small ruminants including poultry and fisheries through a comprehensive package of
extension services and capability building.
Education: Provide children from weaker sections access to education with focus on enrolment, learning
retention and improved pedagogy.
Vocational Training: Build and upgrade skills of youth with the emerging needs of the job market across
sectors.
iii. Economic Empowerment of Women (Schedule VII – iii):
Provide a range of gainful employment and entrepreneurial opportunities to women supported with access to
financial assistance by way of loans & grants and also provide for access to insurance & social security.
iv. Ensuring Environmental Sustainability (Schedule VII – iv):
Social Forestry: Provide food, fuel & fodder security to farmers through social & agro-forestry interventions.
Water Stewardship: Promote local management of water resources by facilitating community-based
participation in planning & executing watershed projects, and also identify & enable extensive use of water
efficient agri practices.
CII-ITC Centre of Excellence for Sustainable Development: Enable other businesses / organisations in India
to create enduring value on a sustainable basis by embedding the imperatives of sustainable development in
their strategies & processes.
v. Protection of National Heritage, Art & Culture (Schedule VII – v):
Revive and restore vanishing musical sub-genres by enlisting the goodwill of some of the finest musicians
through the ITC Sangeet Research Academy (ITC SRA), which was established in 1977 as an embodiment of
the Company’s sustained commitment to a priceless national heritage.
vi. Research in science, technology, engineering and medicine aimed at promoting Sustainable Development Goals
(Schedule VII – ix-b):
Leverage the technical expertise of premier institutions through partnerships and support R&D activities in the
areas of science, technology, engineering, environment, agriculture and health aimed at promoting Sustainable
Development Goals (SDGs).
vii. Rural Development (Schedule VII – x):
Sustainable Agriculture: Introduce advanced knowledge & technologies through package of practices,
increase awareness of farmers on optimum use of natural resources in order to increase farm incomes,
minimise cost of cultivation, and make agriculture resilient to extreme weather events.
Knowledge Empowerment: Enable farmers and farmer collectives to make informed choices by providing
relevant and real-time information on commodity prices, local weather reports, customised knowledge & best
practices on farm management, risk management and scientific farming.

Agri-extension / services: Encourage sustainable agricultural practices through various extension platforms
to enable access to relevant farm mechanisation technologies & implements, as also institutional support
mechanisms including linkages with Government schemes, especially for small farm holdings, to enhance
farm productivity and farm-based incomes.
viii. Disaster Assistance (Schedule VII – xii):
Provide relief especially to the poor and vulnerable sections of society who face severe disruption to their
livelihoods in the event of disasters and calamities, directly or through government bodies.

2. Composition of the CSR and Sustainability Committee as on 31st March, 2023:
Sl. Name of Director Designation / Nature Number of Number of

No. of Directorship meetings of CSR meetings of CSR
and Sustainability and Sustainability
Committee held Committee attended
during the year during the year
1 S. Puri Chairman & Managing Director 3
(Chairman of the Committee)
2 P. R. Chittaranjan 1 Non-Executive Director N.A.
3 M. Gupta Non-Executive Director 3
4 S. Panray Non-Executive Director 3 3
5 N. Rao Independent Director 3
6 A. K. Seth Independent Director 3
7 M. Shankar Independent Director 3
8 D. R. Simpson Non-Executive Director 3
1
Appointed Member w.e.f. 3rd February, 2023.
3. Provide the web-link(s) where composition of the CSR and Sustainability Committee, CSR Policy and CSR projects
approved by the Board are disclosed on the website of the Company: https://www.itcportal.com/sustainability/corporate-
social-responsibility.aspx
4. Provide the executive summary along with web-link(s) of Impact Assessment of CSR Projects carried out in pursuance
of sub-rule (3) of Rule 8 of the Companies (Corporate Social Responsibility Policy) Rules, 2014, if applicable:
Executive Summary – Impact Assessment of ITC’s CSR Projects for the financial year 2020-21
Brief Description ITC implements its CSR Programmes across the country under a Two Horizon approach
aimed at holistic development of communities.
Thematic Areas / The specific themes covered under the Two Horizon approach included:
Programmes Horizon – I: Strengthening today’s livelihoods
Covered
Climate Smart Agriculture
Water Stewardship
Social Forestry
Horizon – II: Building Capabilities for Tomorrow
Support to Education
Public Health: Sanitation, Health & Nutrition including Swasth India Mission
Waste Management including Well Being out of Waste
Skilling of Youth
Women Empowerment
Projects Covered 36 projects having budget of more than ` 1 crore each during the financial year 2020-21
were taken up for impact assessment.
The purpose of these impact assessment studies was to assess the impact of the CSR
projects and also learn from the findings to make course corrections, where required, and
to feed into future programme designing.
Projects Duration FY 2020-21

States The assessments covered interventions in the States of Assam, Bihar, Madhya Pradesh,
Odisha, West Bengal, Andhra Pradesh, Karnataka, Maharashtra, Punjab, Rajasthan,
Tamil Nadu, Telangana and Uttar Pradesh.
Impact Assessment These impact assessments were done by the following six external agencies selected
Agencies through competitive bidding process, and assigned specific projects / geographies for
assessment:
CRISIL Private Limited, Mumbai
Sutra Consulting Private Limited, Bhubaneswar
FDRI Private Limited, Faridabad
Ingrain Technologies, Hyderabad
Kantar, Mumbai
Surge Impact Foundation, Hyderabad
Period of Study FY 2022-23
Methodology The agencies took up studies through a mixed method approach covering quantitative and
qualitative data collection. A statistically significant sample size was covered under each
project.
The major impacts recorded by the impact studies are as follows –
Horizon – I
O
verall, the projects assessed under Horizon-I were found to be relevant, effective, efficient and sustainable. They
have not only contributed to higher incomes for farmers, but also enabled climate adaptation and conservation
of natural resources. More importantly, their implementation was not affected because of Covid, wherein digital
was not only leveraged, but also adopted quickly by the beneficiaries.
Climate Smart Agriculture:
Under Climate Smart Agriculture, the study covered Bihar, MP and Assam where post intervention, improvement
was observed in average yields of major crops of wheat, maize, paddy and soyabean. Overall, 35% improvement
was witnessed in wheat as compared to baseline and as against 13% reduction in control group, with highest
increase of 81% observed in Begusarai.
Overall increase in production for all major crops due to adoption of Climate Smart Agricultural practices was
52% in the study conducted covering Maharashtra and Punjab. Among major crops (onion, sugarcane, wheat
and paddy), highest increase in production was in onion (50%).
2.4 times and 5.3 times increase in awareness; and 3 times & 2.3 times increase in adoption of seed treatment
practices in the model villages of Assam and Bihar, respectively.
Integrated Pest Management Kit - Farmers appreciated the utility of phermone traps and 96% continued usage of
the same in subsequent years after the project. The traps helped in reducing the number of rounds of pesticide
spray (by 2-3 in number), thus saving costs to the tune of ` 6,000 to ` 8,000 per hectare.
T
ray seedlings showed up to 99% establishment in main field even in non-conducive climate, wherein they could
withstand water stress and could give yield improvement of 12% to 17%. The barn roof insulations and turbo
ventilators were instrumental in saving 25% to 28% of fuel wood.
Water Stewardship:
In the assessment conducted in select Districts of Bihar, Madhya Pradesh and Odisha, improvement in water
availability due to the Water Stewardship Programme resulted in an increase in average irrigated area by 7.5%
post intervention. In the study covering Andhra Pradesh, Telangana, Rajasthan, Karnataka and Tamil Nadu,
99% respondents stated that the project had resulted not only in reduction in water consumption, but also
improvement in income because of timely availability of water.

Social Forestry:
Additional income of more than ` 45,000/- per household was observed in Karnataka through plantation of Silver
trees and ` 60,000/- per household for Melia Dubia.
Horizon – II
Projects were of high relevance and successfully continued through online and community intervention inspite of
lockdown, because of changes made in the design to cognize for the changed context.
Support to Education:
In the study conducted in the states of Uttar Pradesh, Maharashtra, Telangana, Karnataka and Andhra Pradesh,
98% students stated improvement in learning levels in reading ability and math skills as an outcome of the Online
Learning and Mohalla Classes under the Read India Programme.
Public Health:
Availability of separate toilets for boys and girls, hand wash stations, drinking water, sanitary napkin dispensers
and incinerators increased in intervention schools compared to baseline and control. Maintenance fund generation
by School Management Committees increased by 70% compared with baseline resulting in better cleanliness
of toilets in Saharanpur, Uttar Pradesh. The beneficiary group witnessed an improvement in the student-toilet
ratio, which is at 1:33, whereas the control group has a ratio of 1:92. For the beneficiary group, the ratio for girl
students is 1:28, and for boys, it is 1:40. Moreover, post intervention, the enrolment rate in intervention group
increased by 30% and the drop-out rate among girls also reduced by upto 50%.
100% of the respondents in intervention areas in West Bengal have mentioned having access to toilet due to
construction of community toilets managed by Mohalla Committees in which 83% are women. The intervention
has also helped women overcome the challenges that they faced before having access to toilets, apart from
giving them security and greater dignity.

As a result of Mother & Child Health programme in Assam and West Bengal, underweight children in
intervention Anganwadis is lower as compared to control in the project locations. In the intervention areas,
over 93% women reported practicing exclusive breastfeeding and 95% women also reported having introduced
semi-solid food after completion of 6 months as advised.
T
here was a significant positive, timely and much needed improvement in awareness on handwash and hygiene
practices because of the campaign as part of the Savlon Swasth India Mission. 9 out 10 people agreed that the
campaign helped them understand the need and criticality of following a handwashing regime of 20 seconds
or more to stay protected from germs, coronavirus and other infections. 95% of the people also agreed that the
masking campaign influenced them to wear a mask properly during COVID.
Waste Management:
Under the Wellbeing Out of Waste project, out of the total collected waste in Bengaluru, 73.6% was recyclable,
and the rest of the waste comprising Low-value plastics, Mixed waste and other waste was sent for co-processing
and Refused Derived Fuel (RDF). The project also provided livelihood opportunities to over 590 waste collectors
in the city.
All the sampled households in intervention areas of the Solid Waste Management project in Tamil Nadu &
Telangana practiced source segregation of waste as against only 17% in control.
Skilling of Youth:
Vocational training in Andhra Pradesh, Tamil Nadu, Maharashtra & Punjab has helped in increasing average
monthly family income of the candidates by 69% because of skilling and consequent placement of youth in the
family. In Bihar, Madhya Pradesh & West Bengal over 82% of the candidates also reported taking independent
financial decisions, 78% started playing a role in family decision making process and 67% reported having
contributed to household assets.

Women Empowerment:
Average monthly income of ultra-poor women covered in the Targeting Hardcore Poor Programme in Telangana &
Uttar Pradesh increased by over 5 times compared to pre-intervention, against their earlier income of just
` 2,312/- per month. 100% of the women in the intervention area were part of SHG compared with only 8% in control.
Complete Impact Assessment Reports are available on the Company’s website at

https://www.itcportal.com/sustainability/impact-studies.aspx
5. (a) Average net profits of the Company as per Section 135(5) : ` 18,245.52 crores
(b) Two percent of the average net profits of the Company as per Section 135(5) : ` 364.91 crores
(c) Surplus arising out of the CSR projects or programmes or activities of the previous financial : Nil
years
(d) Amount required to be set off for the financial year, if any : Nil
(e) Total CSR obligation for the financial year [(b)+(c)-(d)] : ` 364.91 crores
6. (a) Amount spent on CSR Projects (both Ongoing Project and other than Ongoing Project) : ` 345.79 crores
(b) Amount spent in Administrative Overheads : ` 18.27 crores
(c) Amount spent on Impact Assessment, if applicable : ` 1.44 crores
(d) Total amount spent for the Financial Year [(a)+(b)+(c)] : ` 365.50 crores
(e) CSR amount spent or unspent for the Financial Year:
Amount Unspent (in `)

Total Amount
Total Amount transferred to Unspent Amount transferred to any fund specified under
spent for the
CSR Account as per Section 135(6) Schedule VII as per second proviso to Section 135(5)
Financial Year
Name of the
(in `) Amount Date of transfer Amount Date of transfer
Fund
` 342.40 crores ` 23.10 crores * 26th April, 2023 Not Applicable
*Amount pertains to Ongoing Project of FY 2022-23 relating to ‘Health Care Programme’. Different elements of the programme
will get implemented over the next 3 years in identified locations / catchments.
(f) Excess amount for set-off, if any:
Sl. Particular Amount (in `)

No.
(1) (2) (3)
(i) Two percent of average net profits of the Company as per Section 135(5) ` 364.91 crores
(ii) Total amount spent for the Financial Year ` 365.50 crores
(iii) Excess amount spent for the Financial Year [(ii)-(i)] ` 0.59 crore
(iv) Surplus arising out of the CSR projects or programmes or activities of the previous Nil
Financial Years, if any
(v) Amount available for set off in succeeding Financial Years [(iii)-(iv)] ` 1.35 crores *
* Includes an excess amount of ` 0.76 crore spent during the financial year 2021-22 and carried forward.

7. Details of Unspent Corporate Social Responsibility amount for the preceding three Financial Years:
1 2 3 4 5 6 7 8
Sl. Preceding Amount Balance Amount Amount transferred to a Fund Amount Deficiency,
No. Financial transferred to Amount in Spent in the as specified under Schedule remaining to if any
Year(s) Unspent CSR Unspent CSR Financial VII as per second proviso to be spent in
Account under Account under Year (in `) Section 135(5),if any succeeding
Section 135(6) Section 135(6) Amount Date of Financial
(in `) (in `) (in `) Transfer Years (in `)
1 2021-22 ` 3.90 crores Nil ` 3.90 crores Not Applicable
8. Whether any capital assets have been created or acquired through Corporate Social Responsibility amount spent in the
Financial Year:
Yes No 
If Yes, enter the number of Capital assets created / acquired Not Applicable
Furnish the details relating to such asset(s) so created or acquired through Corporate Social Responsibility amount
spent in the Financial Year:
Short particulars of the Details of entity / Authority / beneficiary

Amount
property or asset(s) Pincode of of the registered owner
Sl. Date of of CSR
[including complete the property CSR Registration Name Registered
No. creation amount
address and location or asset(s) Number, if address
spent
of the property] applicable
1 2 3 4 5 6
Not Applicable
9. S
pecify the reason(s), if the Company has failed to spend two per cent of the average net profits as per Section 135(5):
Not Applicable
S. PURI Chairman – CSR and Sustainability Committee

Kolkata, India

FORM NO. MR-3
SECRETARIAL AUDIT REPORT
FOR THE FINANCIAL YEAR ENDED 31ST MARCH, 2023
[Pursuant to Section 204(1) of the Companies Act, 2013 and Rule 9 of the
Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014]
To,
The Members,
ITC Limited
CIN: L16005WB1910PLC001985
Virginia House, 37 Jawaharlal Nehru Road,
Kolkata 700 071
We have conducted Secretarial Audit of compliance with the applicable statutory provisions and adherence to good corporate practices by ITC Limited
(hereinafter called ‘the Company’) for the Financial Year ended 31st March, 2023. Secretarial Audit was conducted in a manner that provided us a
reasonable basis for evaluating the corporate conducts / statutory compliances and expressing our opinion thereon.
Based on our verification of the Company’s books and papers, minute books, forms and returns filed and other records maintained by the Company and
also the information provided by the Company, its officers, agents and authorised representatives during the conduct of Secretarial Audit, we hereby
report that in our opinion, the Company has, during the audit period covering the Financial Year ended 31st March, 2023, complied with the
statutory provisions listed hereunder and also that the Company has proper Board-processes and compliance-mechanism in place to the extent,
in the manner and subject to the reporting made hereinafter.
We have examined the books and papers, minute books, forms and returns filed and other records maintained by the Company for the Financial Year
ended 31st March, 2023 according to the provisions of:
(i) The Companies Act, 2013 (‘the Act’) and the Rules made thereunder;
(ii) The Securities Contracts (Regulation) Act, 1956 and the Rules made thereunder;
(iii) The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder;
(iv) The Foreign Exchange Management Act, 1999 and the Rules and Regulations made thereunder to the extent of Foreign Direct Investment,
Overseas Direct Investment and External Commercial Borrowings;
(v) The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992:
(a) The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011;
(b) The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015;
(c) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018;
(d) The Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021;
(e) The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 1993 - The Company’s in-house
Investor Service Centre is registered with the SEBI as Category II Share Transfer Agent; and
(f) The Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.
(vi) The Management has identified and confirmed the following laws as being specifically applicable to the Company:
(a) The Tobacco Board Act, 1975 and the Rules and Regulations made thereunder;
(b) The Cigarettes and Other Tobacco Products (Prohibition of Advertisement and Regulation of Trade and Commerce, Production, Supply and
Distribution) Act, 2003 and the Rules made thereunder and other laws relating to manufacture and sale of Tobacco;
(c) The Food Safety and Standards Act, 2006 and the Rules and Regulations made thereunder;
(d) The Drugs and Cosmetics Act, 1940 and the Rules made thereunder.
We have also examined compliance with the applicable clauses of the following:
(i)
Secretarial Standards with respect to Meetings of Board of Directors (SS-1) and General Meetings (SS-2) issued by the Institute of
Company Secretaries of India;
(ii) Listing Agreements entered into by the Company with BSE Limited, National Stock Exchange of India Limited and The Calcutta Stock
Exchange Limited.
We report that during the period under review, the Company has complied with the provisions of the Act, Rules, Regulations, Guidelines, Standards
etc. mentioned above.
We further report that:
(i)
The Board of Directors of the Company is duly constituted with proper balance of Executive Directors, Non-Executive Directors, and
Independent Directors including Women Independent Directors. Changes in the composition of the Board of Directors that took place during
the year under review, were carried out in compliance with the provisions of the Act;
(ii) Adequate notice is given to all Directors to convene the Board Meetings; agenda and detailed notes on agenda were sent at least seven days
in advance and a system exists for seeking and obtaining further information and clarifications on the agenda items before the meeting and for
meaningful participation at the meeting;
(iii) All the decisions of the Board and Committees thereof were carried through with requisite majority.

We further report that based on review of compliance mechanism established by the Company, we are of the opinion there are adequate systems and
processes in place in the Company which are commensurate with its size and operations, to monitor and ensure compliance with the applicable Laws,
Rules, Regulations and Guidelines.
We further report that during the financial year under review, no event has occurred having a major bearing on the Company’s affairs in pursuance of
the above referred Laws, Rules, Regulations, Guidelines, Standards, etc., except as follows:
1. Issue and allotment of 10,47,61,810 Ordinary Shares of Re.1/- each, fully paid-up, upon exercise of Stock Options under the Employee Stock Option
Schemes of the Company, from time to time.
2. Acquisition of additional Compulsorily Convertible Preference Shares in Delectable Technologies Private Limited (‘Delectable’), an
Associate Company, consequent to which the Company’s shareholding in Delectable aggregated 33.42% of its share capital on a fully diluted basis.
3. Acquisition of Compulsorily Convertible Preference Shares in Mother Sparsh Baby Care Private Limited (‘Mother Sparsh’), consequent to which the
Company’s shareholding in Mother Sparsh aggregated 22% of its share capital on a fully diluted basis.
4. Acquisition of Equity Shares and Compulsorily Convertible Cumulative Participating Preference Shares in Blupin Technologies Private Limited
(‘Blupin’), consequent to which the Company’s shareholding in Blupin aggregated 10.07% of its share capital on a fully diluted basis.
This Report is to be read with our letter of even date which is annexed as Annexure - A and forms an integral part of this Report.
For S. N. ANANTHASUBRAMANIAN & Co.

Company Secretaries
ICSI Unique Code: P1991MH040400
Peer Review Cert. No.: 606/2019
S. N. Ananthasubramanian
Partner
8th May, 2023 FCS: 4206 | COP No.: 1774
Thane ICSI UDIN: F004206E000252841
Annexure - A
To,
The Members,
ITC Limited
CIN: L16005WB1910PLC001985
Virginia House, 37 Jawaharlal Nehru Road,
Kolkata 700 071
Management’s Responsibility
1. It is the responsibility of the Management of the Company to maintain secretarial records, devise proper systems to ensure compliance with the
provisions of all applicable laws and regulations and to ensure that the systems are adequate and operate effectively.
Auditor’s Responsibility
2. Our responsibility is to express an opinion on these secretarial records, standards and procedures followed by the Company with respect to
secretarial compliances.
3. We have conducted the Audit as per the applicable Auditing Standards issued by the Institute of Company Secretaries of India.
4. We believe that audit evidence and information obtained from the Company’s management is adequate and appropriate for us to provide a basis for
our opinion.
5. Wherever required, we have obtained reasonable assurance as to whether the statements prepared, documents or records, in relation to
Secretarial Audit, maintained by the Company, are free from misstatement.
6. Wherever required, we have obtained the Management’s representation about the compliance of laws, rules and regulations and happening of
events, etc.
Disclaimer
7. The Secretarial Audit Report is neither an assurance as to future viability of the Company nor of the efficacy or effectiveness with which the
management has conducted the affairs of the Company.
8. We have not verified the correctness and appropriateness of financial records and Books of Accounts of the Company.
For S. N. ANANTHASUBRAMANIAN & Co.

Company Secretaries
ICSI Unique Code: P1991MH040400
Peer Review Cert. No.: 606/2019
S. N. Ananthasubramanian
Partner
8th May, 2023 FCS: 4206 | COP No.: 1774
Thane ICSI UDIN: F004206E000252841

INFORMATION UNDER SECTION 134 (3) (m) OF THE COMPANIES ACT, 2013 READ WITH COMPANIES (ACCOUNTS) RULES,
2014 AND FORMING PART OF THE REPORT OF THE BOARD OF DIRECTORS
CONSERVATION OF ENERGY: c) Capital investment on energy conservation equipment:

All business units continued their efforts to improve energy ` 1892.57 lakhs
usage efficiencies and increase the share of renewable energy TECHNOLOGY ABSORPTION:
in line with ITC’s 2030 Goals. These goals include reduction in a) Efforts made towards technology absorption:
specific energy by 30% and specific GHG by 50% along with
increasing renewable energy share to 50% and sourcing 100% I. As a part of Industry 4.0 initiative, various technological
of purchased electricity from renewables. The Company regularly innovations are being implemented in large Businesses
tracks its performance against these key performance indicators. such as Paper and Foods. Key highlights are presented
The Company invests in energy conservation and renewable below:
energy projects along with exploring innovative technologies to a. Implemented IIoT (Industrial Internet of Things) sensors
bring alignment with the goals. These investments are done in to monitor equipment condition and plan for predictive
phases by taking into account future expansion plans, evolving maintenance and reduce downtime.
regulatory frameworks, techno-commercial feasibility and b. Installed advanced data management system to capture
socio-political aspects. real-time operations data across businesses that helps
a) Steps taken or impact on conservation of energy: in building machine learning tools. These tools help in
improving quality; increasing throughput and energy
Some of the energy conservation measures adopted across the
performance; reducing material consumption and costs.
Company are outlined below:
c. Automation coupled with machine learning models to
I. Installation of energy efficient electric boiler and electric help standardise processes across factories to maintain
dryer in ITC Hotels. consistent product quality in noodles manufacturing line.
II. Optimisation of compressed air management through II. State-of-the-art machine installed in Printing and
measures such as installation of intelligent flow controller Packaging Business for cylinder making process
to remove pressure surges, installation of additional that integrates excess material removal and surface
low-pressure compressor etc. in Foods Business. smoothening.
III. Reduction of steam consumption for evaporating effluent III. Pulsed Electric Field technology that softens potatoes
by concentrating it through an additional Reverse Osmosis resulting in lower starch loss in potato chips manufacturing.
stage in Foods Business.
IV. Laser diffraction-based particle size analyser for better
IV. Installation of energy efficient multi-disc screw press quality control in Atta plant.
by replacing decanter for sludge dewatering in Foods
V. New process and product technologies on personal
Business.
hygiene, skin care and fragrances developed through
V. Installation of heat pump for simultaneous cooling and in-house Research & Development in the Personal Care
heating applications. Products Business.
VI. Installation of Variable Frequency Drives (VFDs) for VI. Induction of contemporary technologies and continuous
various pumps, motors and chillers across Businesses. improvement across businesses, towards reducing process
VII. Replacement of cooling tower, Air Handling Units (AHUs), variability, cycle time and wastages while enhancing
chillers, air conditioners, motors, fans, pumps, agitators, manufacturing flexibility, productivity and capability across
UPS and pulp refiner with higher efficiency ones across Businesses.
Businesses.
b) Benefits derived:
VIII. Improvement in energy usage efficiency in lighting systems
by changing over to efficient lighting solutions such as I. Cycle time reduction and productivity enhancement
Light Emitting Diodes (LEDs) across Businesses. II. World-class quality and differentiated products
IX. Process improvements to enhance productivity and reduce III. Addressing market specific end-use applications
specific energy consumption across Businesses. IV. Conservation of resources and improved efficiencies
These investments have resulted in energy savings of over c) The expenditure incurred on Research and
200 TJ during the year.
Development:
b) Steps taken for utilising alternate sources of energy:
For the year ended
Some of the renewable energy initiatives undertaken during the 31st March, 2023
year are as follows:
Expenditure on R&D: (` in Lakhs)
I. Commissioning of 3MWp offsite solar photovoltaic power
plant in Tamil Nadu i) Capital 966.98
II. Commissioning of additional rooftop solar photovoltaic ii) Revenue 16,131.46
power plants. Total 17,098.44
III. Commissioning of biomass boilers at few locations.
Total R&D Expenditure (as a % of Gross Revenue) 0.25%
IV. Continued use of biomass-based fuels in existing
biomass boilers for thermal energy generation to reduce
dependency on fossil fuels across Businesses.
These investments have helped ITC increase its renewable On behalf of the Board
electricity capacity to 178 MW. These investments along with
investments in renewable thermal energy have helped ITC Kolkata, India S. PURI Chairman & Managing Director
achieve an overall renewable energy share of 43%. 18th May, 2023 S. DUTTA Director & Chief Financial Officer

A. Information pursuant to Section 197 of the Companies Act, 2013 read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014

Name of Directors & Designation Ratio of Remuneration to Increase in Remuneration
Key Managerial Personnel Median Remuneration over Last Year (%)
of all Employees
Based on remuneration paid
S Puri Chairman & Managing Director 326 : 1 52
N Anand Executive Director 144 : 1 51

1
S Dutta Executive Director & Chief Financial Officer 88 : 1 76
B Sumant Executive Director 152 : 1 55
S Banerjee Independent Director 17 : 1 14
H Bhargava Independent Director 12 : 1 (17)

2
P R Chittaranjan Non-Executive Director 0 : 1 –
A Duggal Independent Director 17 : 1 14
M Gupta Non-Executive Director 8 : 1 4497*
S Mukherjee Independent Director 11 : 1 1249*
A Nayak Independent Director 17 : 1 17
S Panray Non-Executive Director 11 : 1 2498*
N Rao Independent Director 17 : 1 16
A K Seth Independent Director 17 : 1 16
M Shankar Independent Director 17 : 1 14
D R Simpson Non-Executive Director 17 : 1 16

3
N Doda Non-Executive Director 11 : 1 1832*
4
R Tandon Executive Director 123 : 1 26
R K Singhi Executive Vice President & Company Secretary 46 : 1 32
* Remuneration paid during the financial year 2022-23 is not comparable since the concerned Directors were there only for part of the financial year 2021-22.
1
Appointed as Executive Director w.e.f. 22nd July, 2022
2
Appointed as Non-Executive Director w.e.f. 3rd February, 2023
3
Resigned as Non-Executive Director w.e.f. 20th January, 2023
4
Ceased to be Executive Director w.e.f. 22nd July, 2022 upon completion of term
Notes
1) The number of permanent employees as on 31st March, 2023 was 23,725
2) Compared to the financial year 2021-22, the figures for the financial year 2022-23 reflect that:
(i) Median remuneration of employees - Decreased by 3%
(ii) Average remuneration of employees - Increased by 6%
(iii) Average remuneration of employees excluding Key Managerial Personnel (KMPs) - Increased by 5%
(iv) Remuneration of KMPs - Increased by 28% due to impact of revision in remuneration and payment of long term incentives during the year.
3) Remuneration of Directors, KMPs and other employees is in accordance with the Company’s Remuneration Policy

B. 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 Net Qualifications Expe- Date of Previous Employment and
Remuneration Remuneration rience Commence- Position Held
(`) (`) (Years) ment of
Employment
1 2 3 4 5 6 7 8 9
Top ten employees in terms of remuneration drawn
Puri S 60 Chairman & Managing Director 19,12,62,379 7,28,49,150 B.Tech. 38 20.01.1986 TELCO Ltd., Trainee
Sumant B 59 Executive Director 8,93,63,848 3,31,81,229 B.E. 37 20.01.1986 Nil
Anand N 66 Executive Director 8,44,81,120 3,53,74,711 B.A. (Hons.) 43 01.12.1979 @
Rajput A K 67 President - Corporate Affairs 5,63,54,299 2,40,74,907 B.Com., M.B.A. 46 10.04.1976 Nil
Lahiri D 50 Divisional Chief Executive (ITD) 5,49,30,769 2,26,60,925 B.Com. (Hons.), M.B.A. 26 10.12.2020 VST Industries, M.D.
Malik H 57 Divisional Chief Executive (FBD) 5,46,42,570 2,11,39,574 B.A., M.B.A. 33 01.06.1989 Nil
Dutta S 56 Executive Director & Chief Financial Officer 5,16,82,375 1,79,20,961 B.Com. (Hons.), C.W.A., A.C.A. 32 01.11.1990 Nil
Sivakumar S 62 Group Head – Agri Business, IT, EHS, 4,98,11,730 2,33,74,535 B.Sc., P.G. Dip. in Rural Mgmt. 40 18.09.1989 Gujarat Co-op Oil Seeds Growers’
Sustainability & CSR Fed. Ltd., Mgr. Mktg.
Kaul S 56 Group Head - ITD, MAB, Start-up Ventures, 4,83,37,193 1,86,23,891 B.E., P.G.D.M. 32 01.06.1990 Nil
LS & T & Quality
Satpathy S 50 Divisional Chief Executive (PCPBD) 4,77,64,683 1,90,85,060 B.Com., P.G.D.M. 27 01.12.2015 Marico Ltd., Chief Marketing Officer
Other employees employed throughout the year and in receipt of remuneration aggregating ` 1,02,00,000/- or more per annum
Abraham C (Dr.) 59 Chief Executive - Healthcare 2,92,68,973 1,56,89,628 M.B.B.S., Adv. Dip. in Healthcare 29 02.05.2018 Health City Cayman Islands,
Administration CEO & Head of Medical Services
Agarwal U 43 Head of Finance, ITC Maratha (HD) 1,05,88,513 54,08,762 B.Com. (Hons.), A.C.A., C.S. (Inter) 20 06.06.2005 Usha Martin Ltd., Assistant
Manager - Management Audit
Aggarwal A 42 Vice President - Corporate HR 1,42,61,003 87,83,956 B.Tech., P.G.Dip. in P.M. & I.R. 19 15.03.2017 HCL Healthcare, G.M. - HR
Aggarwal G 39 General Manager - Finance - Dairy (FBD) 1,15,90,290 55,62,026 B.Com., C.S., A.C.A. 16 01.04.2008 Nil
Aiyer K 49 V.P. - Finance (Operations) (ITD) 2,03,65,621 99,40,342 B.Com. (Hons.), A.C.A. 25 01.09.1998 Modi Telstra Pvt. Ltd.,
Mgmt. Trainee
Amancharla V G 41 General Manager - Marketing (ESPB - SBU) 1,31,21,636 65,23,812 B.E., P.G.D.M. 19 07.06.2007 ABB Ltd., Marketing Engineer
Anandan M 52 V.P. - Sales & Category Development - Personal 2,56,62,089 1,13,27,333 P.G.D.M. 30 01.02.1994 Threads India Limited,
Care, Matches & Agarbatti (TM & D) Sales Representative
Arif N 61 Executive V.P. & Head - Corporate 4,61,66,982 1,78,56,478 B.A. (Hons.), M.A. 37 01.09.2006 Indian Chamber of Commerce,
Communications Secretary General
Arora B 49 V.P. - Finance (FBD) 2,30,70,632 1,04,90,115 B.Com. (Hons.), A.C.A. 29 06.09.1999 Maruti Udyog Ltd., Finance
Executive
Arun K R 44 General Manager - Sales (Alternate Trade) 1,14,34,015 60,28,972 B.Sc., M.B.A. 24 15.04.2002 Sanofi Synthelabo, Scientific
(ESPB - SBU) Services Officer
Ashok D 59 Executive V.P. & Head - Corporate Taxation 3,00,77,176 1,21,03,802 B.Com., A.C.S., F.C.M.A. 38 01.08.1992 UB Petro Products Ltd.,
Dy. Manager, Accounts
Awasthi J 56 V.P. - Special Projects 1,83,29,521 79,90,893 B.E. (Hons.), P.G.D.M. 34 01.03.1993 Network Ltd., Field Manager
Bagla M K 44 General Manager - Trade Marketing & 1,42,17,403 68,15,020 B.Com. (Hons.), M.B.A. 24 11.02.2008 Bunge India Pvt. Ltd.,
Distribution - Western District (TM & D) Brands Manager
Baheti V 39 General Manager (PSPD) 1,16,66,095 64,50,954 B.Com. (Hons.), C.S., A.C.A. 17 01.12.2005 Nil
Bajaj K 50 Executive V.P. - Marketing (ITD) 3,18,51,744 1,29,96,853 B.A. (Hons.), M.B.A. 28 16.03.2011 Bharti Retail Ltd., Head - Brands
Balaji L N 61 Executive V.P. - Shared Services 2,24,49,961 1,13,14,031 B.Com., F.C.A. 38 17.06.1985 Nil
Balaji P 57 Administrator - Salaries & Retirement Funds 1,21,75,746 74,21,597 B.Com. (Hons.), A.C.A. 35 01.06.1987 Nil
Balakrishnan S 56 V.P. - Integrated Supply Chain (PCPBD) 2,37,15,218 94,29,212 B.E. 35 01.09.1987 Nil
Balar S 48 V.P. - Marketing (PCPBD) 2,84,14,060 1,22,44,551 B.Tech., P.G.D.M. 22 01.06.2000 Nil
Bandyopadhyay S S 53 Executive V.P. - HR & CSR (PSPD) 2,46,62,843 1,21,79,390 B.Com., P.G.D.P.M., I.R. & L.W., 27 12.12.2006 Pepsico India Holdings Pvt. Ltd.,
M.B.A., Dip. in T&D Asst. Manager - HR
Banerjee Shuvadip 46 Chief Digital Marketing Officer (FBD) 2,66,88,733 1,45,98,496 B.E., M.B.A. 23 01.06.2009 IMRB International,
Insights Director
Banerjee Somnath 50 General Manager - Finance - Production 1,26,18,198 73,82,139 B.Com. (Hons.), A.C.A. 25 01.09.1998 EIH Ltd., Accounts Manager
Operation (ITD)
Bansal A 38 General Manager - Sales & Category 1,39,19,730 68,65,146 M.B.A. 16 10.06.2008 Tata Consultancy Services,
Development - Foods (TM & D) Systems Consultant
Bansal R 45 General Manager - Corporate Audit 1,80,84,256 80,36,112 B.Com., A.C.A., C.S. 24 22.01.2007 Bharat Oman Refineries Ltd.,
Asst. Mgr. Finance
Bansal R K 50 Executive V.P. - Finance (TM & D) 2,73,39,956 1,23,06,186 B.Com. (Hons.), C.W.A., A.C.A. 27 01.11.1995 Nil
Barhanpurkar M P 58 Divisional Head - Technical (PSPD) 1,80,19,542 94,65,083 B.E. 29 01.01.2004 Abhishek Industries Ltd.,
Manager Engineering
Barve M M 52 V.P. & Head of Product Development, 2,06,62,946 1,13,05,115 B.Sc., M.Sc. (Food Tech.), E.M.B.A. 27 27.07.2015 Pepsico India Holdings Pvt. Ltd.,
Chocolates & Confectionery (FBD) Associate Director
Basu N 53 V.P. - Corporate Communications 2,01,29,460 1,11,32,356 B.A., M.A. 30 01.01.2008 United Credit Belani Group, V.P.
Batra J K 52 Head of Project Finance (HD) 1,19,71,340 65,66,145 B.Com., M.Com., A.C.A. 27 17.06.1996 Nil
Bhalla A 55 A.M. - East and West & G.M. - ITC Maratha (HD) 1,46,47,875 60,54,129 B.A., Dip. in Hotel Mgmt., 32 09.02.1998 Holiday Inn, Restaurant Manager
Catering & Nutrition
Bhalla R 39 V.P. - New Business Development 2,13,63,784 97,57,173 B.Tech., M.Tech. 17 08.06.2006 Nil

Employment
1 2 3 4 5 6 7 8 9
Bhaskar James P (Dr.) 56 Senior Principal Scientist (PCPBD) 1,38,65,885 59,62,007 M.Sc., Ph.D. 28 27.08.2008 Hindustan Unilever Ltd.,
Senior Research Scientist
Bhatt S 54 V.P. & Head of Exports (FBD) 1,67,08,111 74,30,878 B.Sc., P.G. Dip. in Marketing 34 01.10.1997 Pertech Computers Ltd.,
Regional Sales Mgr.
Bhattacharjee A 59 V.P. - Information Systems (HD) 1,51,50,945 64,95,032 B.E. (Industrial & Production) 34 09.07.2001 @
Bhattacharjee P 54 General Manager & ICML Head - Panchla (FBD) 1,16,47,723 51,96,552 B.Tech. (Mechanical), Energy 32 01.09.2005 Asian Paints Ltd., Sr. Manager -
Management Plant Engineering
Bhaumick D 43 General Manager - Marketing (PCPBD) 1,26,54,446 58,88,050 B.Sc., P.G.D. 20 22.06.2009 Parle Agro Pvt. Ltd.,
Group Product Manager
Bisht S 45 V.P. - Spices & Aqua - Agri SBU (ABD) 1,77,42,155 88,96,828 B.Sc. (Agriculture), P.G. Prog. in Agr. 22 01.06.2001 Nil
Business Mgmt.
Bose S 54 Executive V.P. - HR & Learning & 2,98,95,894 1,55,65,582 B.A., P.G. Dip. in P.M. 28 28.09.2017 Indian Hotels Co. Ltd.,
Development (HD) V.P. HR Operations
Bose S K 57 General Manager - Finance - Business Systems (ITD) 1,07,68,680 48,33,337 B.Com. (Hons.), C.W.A., M.B.A. 31 01.09.1991 Nil
Bothra S 38 General Manager - Trade Marketing & Business 1,29,46,262 74,97,614 B.B.A., P.G.D.M. 15 10.06.2008 Nil
Transformation (TM & D)
Chadha A 53 Chief Executive (HD) 2,58,39,835 1,27,83,141 Dip. in Hotel Mgmt., Catering & Nutrition 33 01.05.2001 @
Chakrabarty B 47 General Manager - Packaging Development (FBD) 1,41,80,176 81,82,603 B.Sc., P.G. Dip. 23 12.07.2005 Bharat Shell Ltd., Executive -
Packaging
Chakraborty S 50 General Manager & Head of Central Quality (FBD) 1,08,11,611 66,10,561 B.Sc., B.Tech., M.Tech. 26 04.05.2005 Perfetti Van Melle India, Executive
Chakravorty A 52 General Manager - Brands (ITD) 1,17,12,581 54,98,380 B.Sc., M.B.M. 29 27.12.2001 Duncans Industries Ltd.,
Group Product Manager
Chand S 39 General Manager - Sales & Category 1,67,18,260 92,26,917 B.E., M.B.A. 17 21.04.2008 Marico Ltd., Area Sales Manager
Development - Cigarettes (TM & D)
Chandak A 46 Head - Divisional Audit (HD) 1,19,62,560 64,20,626 B.Com., C.W.A., A.C.A., C.S. 22 01.01.2003 Pepsico Inc., Asst. Mgr. -
Financial Planning
Chatterjee D 39 General Manager - Sales & Marketing 1,07,04,699 57,26,177 B.Tech. 16 04.07.2018 Zomato Media Pvt. Ltd., Business
(PPB - SBU) Head/Associate V.P.
Chatterjee K 62 V.P. & Head of Packaging Development (FBD) 1,79,55,989 78,53,648 Dip. in Mech. Engg. 37 15.10.2001 Agrotech Foods Ltd., Manager -
Packaging & Development
Chatterjee S 54 Executive V.P. & Head of Procurement (FBD) 2,71,95,450 1,48,40,585 B.A. 35 05.06.2006 Nestle India Ltd., Purchase
Manager
Chaturvedi K 45 Chief Operating Officer - Snacks, Noodles and 3,17,40,760 1,38,27,798 B.A. (Hons.), P.G. Dip. in 21 19.05.2003 Mindshare Fulcrum, Planning
Pasta (FBD) Communication Executive
Chaudhuri A 39 General Manager - Marketing, Beverages & 1,08,51,208 68,46,525 B.Com., P.G.D.B.M. 15 11.04.2016 Dabur India Ltd., Brand Manager
Ambient Dairy (FBD)
Cheruvathur N 51 General Manager - Supply Chain (PCPBD) 1,11,42,059 52,69,445 B.Sc. (Technology) 27 18.06.2007 Marico Ltd., Operations Manager
Chhaproo J T 49 General Manager & Head Media and PR (PCPBD) 1,66,83,041 84,73,898 B.Tech., P.G.D.M. 14 08.08.2016 Snapdeal, Head - Media
Choudhury S 47 V.P. - Finance - Agri SBU (ABD) 1,58,52,066 78,55,156 B.Com. (Hons.), A.C.A. 24 27.09.1999 Nil
Dalmia P 41 General Manager - Finance (PPB - SBU) 1,08,58,439 53,83,305 B.Com. (Hons.), A.C.A. 20 07.12.2004 Bharat Petroleum Corporation Ltd.,
Sr. Accounts Officer
Damani N 38 General Manager - Employee Relations (ITD) 1,25,65,087 78,79,614 B.Tech., M.B.A. 14 10.06.2008 Nil
Das A 39 General Manager - Divisional Human 1,02,76,918 57,75,127 B.A., M.B.A. 15 10.06.2008 Nil
Resources (HD)
Das S 51 General Manager - Quality (PCPBD) 1,10,65,634 51,05,610 B.E., P.G.D.B.M. 18 01.12.2005 Leaders Healthcare Pvt. Ltd.,
Plant Manager
Das S K (Dr.) 56 Senior Principal Scientist (PCPBD) 1,33,73,960 77,07,271 M.Sc., Ph.D. 24 20.11.2008 Hindustan Unilever Ltd., Senior
Research Scientist
Datta S 56 Chief Risk Officer 1,25,39,196 58,15,404 B.Com. (Hons.), A.C.A., C.W.A. 31 01.04.1992 Nil
David M I 58 V.P. - Exports - Tobacco SBU (ABD) 1,93,36,979 94,22,725 B.Sc. (Agriculture), M.Sc. (Agriculture) 34 16.12.1988 Nil
Desai H K 36 General Manager - Saharanpur Factory (ITD) 1,22,48,044 68,00,766 Integrated M.Tech. 12 16.05.2012 Galaxy Surfactants Ltd.,
Senior Associate
Dhanuka P 46 General Manager - Business Systems (HD) 1,12,25,317 62,29,172 B.Com. (Hons.), Dip. in Business 20 01.07.2009 DLF Hotel Holdings Ltd.,
Finance, A.C.A. Deputy G.M. - Financial Planning
& Analysis
Dixit P K 62 Executive V.P. - T & RA (ITD) 3,06,90,499 1,21,77,797 B.Sc. (Hons.) 39 17.10.1983 Nil
Dogra M 48 V.P. - Strategic Planning 1,79,47,269 97,95,864 B.Com., A.C.A., M.B.A. 23 01.11.2004 Export Import Bank of India,
Management Trainee
Dogra R 48 Executive V.P. - Alternate Channels (TM & D) 2,63,90,155 1,18,34,399 B.Tech., M.I.B. 23 01.06.2001 J.C.T. Electronics Ltd.,
Engg. Executive
Dugar P K 45 General Manager - Finance (TM & D) 1,03,00,341 57,12,636 C.W.A., A.C.A. 21 28.08.2007 Tata Teleservices Limited,
Assistant Manager
Gabriel C 41 General Manager & Head of Product 1,05,39,374 51,77,396 B.Sc., B.Tech. 17 20.03.2015 Coca Cola India Pvt. Ltd., Assistant
Development - Coffee (FBD) Manager - Project Development
Ganesan M 60 Executive V.P. & Head - Corporate Internal Audit 4,24,64,260 1,66,25,341 B.Com., A.C.A., A.C.S. 37 01.03.1986 Nil

Employment
1 2 3 4 5 6 7 8 9
Ganesh Kumar S 55 SBU Chief Executive – Staples, 4,22,78,541 1,68,96,113 B.E. 32 14.12.1991 Mather and Platt (I) Limited,
Snacks & Meals (FBD) Engg. Trainee
Garg A S 54 V.P. - Finance & MIS (PPB - SBU) 1,97,09,416 88,57,724 B.Com., C.W.A., A.C.A., Fellowship in 31 01.06.1992 Larsen & Toubro,
Management Chartered Accountant
Ghosal N 48 V.P. - Operations (ITD) 2,18,80,720 97,85,115 B.Tech., P.G.D.M. 24 01.06.1999 Nil
Ghosh A 45 General Manager & Head - Digital (Marketing and 1,36,01,833 84,41,505 B.Sc., M.B.A. 14 26.07.2017 PHD Media, Digital Strategic Lead
Performance) (FBD)
Ghosh Sarathi 48 General Manager - FMCG Infrastructure (TM & D) 1,19,99,972 54,46,732 Graduate in Electrical Engineering, 27 15.03.2000 Tata Steel, Senior Associate
Certified Energy Manager
Ghosh Subhasish 55 General Manager - Business Systems (FBD) 1,09,30,297 51,64,790 B.Com. (Hons.), C.W.A. 27 01.10.1996 Nil
Gohil M 43 V.P. - Supply Chain & Operations (ESPB - SBU) 1,93,65,951 90,02,186 B.Tech., P.G.D.I.E. 19 08.06.2006 Reliance Industries Ltd.,
Asst. Manager
Gopal R 44 Chief Information & Digital Officer & 2,08,94,453 1,24,78,670 B.E., M.S. 22 01.04.2022 Loreal, Cluster CIO
V.P. Digital Tech. (FBD)
Gouraha R 42 V.P. - ITC MAARS, Agri SBU (ABD) 2,34,00,561 1,31,39,735 B.Tech. 19 04.06.2004 Nil
Gupta J 40 V.P. & Head of Manufacturing - Staples (FBD) 2,09,07,727 96,16,442 B.Tech. 18 01.09.2016 Hindustan Unilever Ltd.,
Factory Manager
Gupta S 54 Head Procurement (HD) 1,13,95,345 68,20,900 B.Tech. (Textiles), P.G. Diploma in 32 05.08.2002 Kikomo Ltd., Head - Sourcing &
Marketing Management QA (Asia Pacific & Africa)
Gupta V 58 SBU Chief Executive (ESPB - SBU) 3,18,57,916 1,67,31,769 B.E., P.G.D.M. 32 09.01.2017 Cello (Writing) Group of
Companies, C.E.O.
Gurumurthy D S (Dr.) 53 Principal Scientist - Agro Forestry (LS & T) 1,08,71,346 67,02,401 B.Sc. (Forestry), M.Sc. (Agri) Crop 23 01.03.2007 Gangagen Biotechnologies - Head,
Physiology, Ph.D. - Molecular Biology Phage Engineering
Halder R 43 V.P. - Brands (ITD) 1,40,85,782 82,61,586 B.Sc., P.G.D.B.M. 18 08.06.2005 NIL
Handa M 44 V.P. - Marketing (PCPBD) 2,11,31,060 1,19,29,588 B.E., P.G.D. 18 22.07.2019 Marico Ltd., Head of Marketing
Janardanan Anand P 57 Executive V.P. - HR (FBD) 2,92,50,903 1,22,30,405 B.Com. (Hons.), P.G. Dip. in P.M. & I.R. 32 01.06.1990 Nil
Jasper N K 53 Executive V.P. - Finance & IT (FBD) 3,01,79,282 1,37,39,631 B.Com. (Hons.), A.C.M.A., A.C.A. 30 25.06.1993 A.F. Ferguson, Asst. Consultant
Jayaprakash D (Dr.) 53 Principal Scientist (PCPBD) 1,02,92,824 62,41,384 B.Sc. (Hons.), M.Sc., Ph.D. 15 01.07.2008 ISIR, Osaka University,
Asst. Professor
Jhingran R 45 Vice President - HR (PCPBD) 2,04,04,059 1,14,05,685 B. Pharm., P.G.D.M. 19 04.06.2004 Nil
John R 54 Executive V.P. - Technical (ITD) 2,89,99,270 1,19,05,362 B.Tech. 31 03.03.2006 Wings Corporation (Indonesia),
Operations Director - Nigerian
Operations
Jojo M 41 General Manager - Salt (FBD) 1,13,80,226 56,40,154 B.Tech., M.B.A., UCLA PGPX 16 01.10.2014 Kansai Nerolac Paints Ltd.,
Sr. Manager Marketing
Joshi K K 52 Head - Regulatory Affairs (FBD) 1,62,19,253 72,58,908 B.Sc., M.Sc. 28 25.05.2012 Nestle India Ltd., Food Regulatory
Affairs Mgr.
Kalsi G (Dr.) 58 Senior Principal Scientist - Health & 1,19,61,525 63,88,937 B.Sc. (Botany), M.Sc. (Botany), 29 03.03.2008 University of California, Resch.
Wellness (LS & T) Ph.D. - Botany Associate & Lab. Mgr.
Kanisetti V K 46 General Manager - Finance (ABD) 1,47,17,734 80,63,609 B.Com., A.C.A. 24 23.05.2005 Tata Coffee Ltd., Asst. Manager
Kannan S 49 V.P. - VAAP, Agri SBU (ABD) 2,07,63,638 1,11,82,906 B.E., P.G.D.M. 25 13.09.2021 V.V.F. India Ltd., Senior V.P.
Kar B 58 General Manager - Corporate Audit 1,36,16,933 76,54,818 B.E. (Civil) 33 05.02.2007 PD Hinduja National Hospital,
Asst. Director (Project & Engg.)
Kar S 50 Divisional Head - Finance (PSPD) 1,87,31,751 96,47,534 B.Com., C.W.A., A.C.A., A.C.S. 27 06.09.1999 Deloitte Haskins & Sells,
Asst. Mgr.
Karthik B 50 Executive V.P. & Head - Corporate Finance 2,40,20,708 1,04,88,029 B.Com. (Hons.), C.W.A., Advanced Dip. 27 07.05.2007 Tionale Pte Ltd.,
in Systems Mgmt., A.C.S., A.C.A., C.P.A. G.M. - Business Development
Kathuria S 37 General Manager - Marketing, Biscuits & 1,39,79,682 67,43,194 B.Com., M.B.A. 15 10.06.2008 Nil
Cakes (FBD)
Kaushik N 40 General Manager - Marketing Development (ITD) 1,45,79,966 71,64,825 B.Tech., M.B.A. 17 07.01.2008 Satyam Computer Services Ltd.,
Software Engineer
Khan K H 41 V.P. - Bulk Commodities - Agri SBU (ABD) 1,79,04,167 89,09,097 B.Tech. (Hons.), M.B.A. 17 08.06.2006 Nil
Khanna R 39 General Manager - Organisational 1,20,00,518 69,63,051 B.Tech., M.B.A. 13 01.09.2017 GE India, H.R. Manager
Development (ITD)
Khosla V 56 V.P. - Trade Marketing & Distribution - Southern 2,24,92,452 1,02,02,250 B.A. (Hons.), M.B.A 32 01.07.2001 Indian Army, Captain
District (TM & D)
Kidwai A R 48 A.M. (WH North) & G.M. - Sheraton New Delhi 1,04,86,459 48,65,374 Diploma in Hotel Management 25 01.08.1998 @
(HD)
Kini N 44 General Manager - Key Accounts (TM & D) 1,25,10,781 63,28,467 B.Com. 22 14.11.2018 Kottaram Agro Foods (P) Ltd.,
National Sales Manager
Kishore A 48 V.P. - Digital & Analytics (TM & D) 2,07,59,254 94,56,495 B.Tech., P.G.D.M. 27 15.05.2006 Gillete India Ltd., Regional Value
Chain Manager
Kookkal V 41 V.P. & Head of Marketing - Staples & 1,86,07,330 1,09,34,889 B.Tech., P.G. Dip. in Marketing 17 08.06.2006 Nil
Meals (FBD)
Krishnan S R 53 General Manager - Engineering (ITD) 1,02,40,893 49,46,105 B.Tech., M.B.A. 31 01.09.2000 NTPC, Senior Engineer

Employment
1 2 3 4 5 6 7 8 9
Kulkarni V 48 Divisional Chief Executive (PSPD) 3,61,24,714 1,78,27,654 B.Tech. 26 23.07.2001 Agrotech Foods Ltd.,
Unit In-charge
Kumar Amit 44 General Manager - Supply Chain Excellence 1,42,92,768 69,21,118 B.Tech., P.G.D.M. 18 04.03.2020 Pepsico India, Associate Director
(TM & D)
Kumar Ashit 57 Executive V.P. - Finance & MIS (ABD) 2,79,26,729 1,41,53,797 B.Com., A.C.A. 34 01.12.1988 Nil
Kumar Ashwani 59 Chief Technologist - Packaging & 2,20,83,250 92,61,328 B.Sc., M.B.A. 37 01.07.1990 Uptron India Ltd., Planning &
Graphics Design (ITD) Advertising Manager
Kumar Asish 58 General Manager - Leaf (ITD) 1,19,52,344 56,65,608 M.Sc. 33 02.07.1990 Nil
Kumar Atul 59 V.P. - Finance (HD) 1,58,79,499 75,38,022 B.Com. (Hons.), A.C.A. 35 01.06.1988 @
Kumar Avinash 47 General Manager - Operations - Spices (FBD) 1,08,54,663 53,68,647 B.Tech. 24 06.12.2011 Hindalco Industries Ltd.,
Sr. Manager - Projects
Kumar G K 57 V.P. - Leaf Operations, Tobacco SBU (ABD) 2,50,79,222 1,12,27,569 B.Sc. (Agriculture) 35 01.08.1987 Nil
Kumar K 51 Sr. Principal Technologist (PCPBD) 1,82,83,992 81,18,040 B.Com., A.C.A. 26 22.10.2008 Ruchi Soya Industries Ltd.,
Deputy G.M., Commercial
Kumar N 38 General Manager - Procurement (ITD) 1,13,09,021 55,91,973 B.Tech. 16 07.06.2007 Nil
Kumar S S 47 V.P. - Corporate Treasury 2,12,24,385 93,78,397 B.Com. (Hons.), C.W.A., A.C.A. 22 20.11.2000 Nil
Kumar T S 52 Executive V.P. - Sales & Category Development - 2,45,66,236 1,12,20,800 B.Sc. 30 01.04.1995 E.I.D. Parry (India) Ltd.,
Foods (TM & D) Sales Representative
Kumar U 41 General Manager - HR (PPB - SBU) 1,17,17,302 59,52,160 B.Sc., P.G.D. in P.M. & I.R. 18 15.07.2006 Jindal Stainless Steel Ltd.,
Management Trainee
Kumar V G 44 General Manager - Sales & Category 1,12,13,371 54,47,905 B.Sc., P.G.D.B.M. 22 29.07.2002 Music World Entertainment Ltd.,
Development - PCP (TM & D) Assistant Manager
Kunchey J K 48 Executive V.P. - Supply Chain & 3,03,13,999 1,31,81,156 B.Tech., P.G. Dip. in I.E. 25 24.08.2007 Reliance Retail Co.,
Logistics (TM & D) Head - Planning & Logistics
Lamba M 42 V.P. & Head of Marketing - Confectionery, 1,88,51,205 93,22,585 B.Com., P.G.P.C.M. 19 15.03.2017 Perfetti Van Melle India, Associate
Chocolates, Coffee & Gums (FBD) Category Director
Madhu Sudana Rao A 58 General Manager - Projects - Central Projects 1,03,84,513 60,16,924 Mech. Engg., M.B.A. 38 20.06.2007 TTK LIG Limited, Deputy General
Organisation Manager
Makhal S (Dr.) 47 General Manager & Head of Product 1,39,27,848 63,99,045 B.Tech., M.Tech., P.G.D., Ph.D. 18 10.12.2012 Cavincare Pvt. Ltd.,
Development - Dairy (FBD) Principal Scientist
Manian V 41 General Managers - Accounts - Central Projects 1,23,67,892 60,87,610 B.Com. (Hons.), F.C.A. 19 11.12.2006 B.S.R. & Co., Executive
Organisation
Manimaran G U 46 General Manager & Head of Product 1,47,46,786 83,96,676 B.Tech. 24 26.09.2005 Perfetti Vanmelle India Pvt. Ltd.,
Development - Biscuits & Cakes (FBD) QA Executive
Mathew K J 56 V.P. - Finance, Tobacco SBU (ABD) 1,49,77,471 80,32,625 B.Sc., A.C.A., A.C.S. 27 14.12.1995 Nil
Mathew T 48 V.P. - Talent Development, Corporate HR 2,07,77,975 93,06,588 Dip. in H.M.C.T. & A.N., B.B.A., M.A. 25 25.06.2001 Marico Ltd., Mgmt. Trainee
Mathur A 41 V.P. & Head of Manufacturing - Biscuits and 1,97,10,319 90,00,916 B.Tech. 18 08.06.2005 Nil
Cakes (FBD)
Mehrotra A 43 V.P. & Head of Marketing - Dairy & 1,68,49,327 83,94,730 B.Tech., M.B.A. 18 08.06.2006 Seaarland Management Services
Beverages (FBD) (I) Pvt. Ltd., Junior Engineer
Mehta V A 43 General Manager - Finance, Audit (ITD) 1,03,51,675 56,55,576 LL.B., A.C.A. 18 11.12.2006 Tata Chemicals Ltd., C.A. Trainee
Menon V P 57 V.P. - Projects (HD) 1,82,32,438 90,13,724 B.Tech. (Civil) 34 10.01.1993 @
Mishra P 41 Business Head - Spices (FBD) 1,86,81,984 1,05,27,987 M.B.A. 18 08.06.2005 Pepsico India, Customer Executive
Moza N 42 General Manager - OD (FBD) 1,28,14,071 62,63,088 B.Com., Dip. in I.H.M., M.A. in 18 06.08.2013 Peel Works Outsourcing Pvt. Ltd.,
P.M. & I.R. GM - Accounts & Delivery
Mukherjee S (Dr.) 57 Chief Scientist and Head R&D (ITD) 2,75,33,327 1,43,74,914 B.Sc., M.Sc., Ph.D., Post Doctorate 27 16.03.1998 ICI India Ltd., Manager Q.A.
Mukherji A 50 Executive V.P. & Head - Corporate Human 4,05,85,249 1,79,06,890 B.A., P.G. Dip. in P.M. & I.R., M.I.L.R. 27 01.08.1995 ANZ Grindlays Bank, Mgmt.
Resources Trainee
Muralidhar M 50 Head of Operations, Matches & Agarbatti SBU 1,10,11,888 53,30,850 S.S.C., Intermediate, B.Tech. 23 18.09.2000 Nil
(Instrumentation), M.B.A.
(Manufacturing Management)
Muralidharan M 53 General Manager - Operations (PPB - SBU) 1,30,86,992 64,40,439 B.E. 30 07.03.1997 Contemporary Packaging
Technologies Ltd., Engineering
Executive
Naik P V (Dr.) 48 Principal Scientist - Ingredients & 1,39,31,967 62,86,072 B.Sc., M.Sc., Doctorate 22 22.12.2010 E.I.D. Parry (India) Ltd., Head of
Submission (ITD) Parry Life Sciences
Nair J P 51 General Manager - Engineering (ITD) 1,46,00,597 66,00,984 B.Tech., M.S. 30 14.11.2005 Cadbury India Ltd., Factory Asset
Manager & EHS Manager
Narayanan R R 57 V.P. - Sales & Marketing (ESPB - SBU) 2,39,20,105 1,06,61,223 B.A., P.G.D.M. 36 01.01.1990 Godrej & Boyce Mfg. Co. Ltd.,
Sales Representative
Ohri R 56 Executive V.P. - Corporate Affairs 2,44,19,312 1,06,21,927 B.Com. (Hons.), A.C.A. 32 01.09.1991 Nil
Padmanabhan V 50 Principal Scientist (PCPBD) 1,12,59,263 66,91,256 B.Sc., M.Sc. 26 18.07.2005 Hindustan Unilever Ltd.,
Research Associate
Panda S 56 Executive V.P.- HR (ITD) 2,80,59,374 1,59,67,698 B.Sc. (Hons.), M.A. 33 01.09.2003 J K Papers Ltd., Mgmt. Trainee
Pandey P 36 General Manager - Marketing - Biscuits & 1,07,44,158 51,52,701 B.E., M.B.A. 13 14.06.2010 Nil
Cakes (FBD)

Employment
1 2 3 4 5 6 7 8 9
Pandey S K 56 Divisional Head - Plantations & 1,74,49,688 96,25,798 B.Tech., M.Tech., I.F.S. Diploma in 32 20.02.2014 Ballarpur Industries Ltd., V. P.
Raw Materials (PSPD) Bamboo Tech.
Patni V 39 General Manager - Procurement (PCPBD) 1,60,31,771 91,11,844 B.Tech., P.G.D.I.E. 17 19.05.2008 Glenmark Pharmaceuticals Ltd.,
Asst. Manager - Supply Chain
Patra A K 49 General Manager & Head of Product 1,33,16,699 64,52,029 B.Sc., B.Tech., M.Sc. 24 02.01.2014 Dabur India Ltd., Principal
Development - Beverages (FBD) Scientist
Patra P K 55 V.P. - ER (PSPD) 1,24,87,864 68,25,846 B.Sc., P.G. Diploma, LL.B., M.B.A. 32 02.05.2006 JK Paper, Asst. Manager -
Personnel
Paul A E 58 Asst. V.P. - Corporate Affairs 1,45,95,174 63,78,760 B.Com. 37 01.08.1986 Nil
Phakey A 53 V.P. - Frozen Snacks and Fresh F & V (FBD) 2,22,74,029 1,23,36,878 B.Com., M.B.A. 30 25.03.2019 H.T. Media Ltd., C.O.O.
Ponnuru R K 39 Category Manager - Juices & Dairy (FBD) 2,49,06,541 1,09,74,602 B.Tech. 19 04.06.2004 Nil
Prabhakar L 57 Executive V.P. & Head - Social Investments 2,83,45,759 1,37,64,465 B.E. (Mech.), P.G. Dip. in P.M. & I.R. 35 01.05.2006 ITC Infotech India Ltd., G.M.- HR
Pujar A 41 Head of Marketing, Matches & Agarbatti SBU 1,32,34,463 65,82,883 B.E. (I.T.), M.B.A., P.G.D.M. (Marketing) 15 10.06.2008 Nil
Puri Sudhir 46 V.P. - New Generation Products (ITD) 2,55,41,833 1,15,02,641 B.Tech. 24 01.06.1998 Nil
Radhakrishnan Y (Dr.) 51 Principal Scientist - Food Science & Technology 1,03,73,042 63,98,788 B.Sc. (Zoology), M.Sc. (Zoology), 20 15.11.2010 University of North California -
(LS & T) Ph.D. - Genetics Research Associate
Rae S 52 Senior Principal Technologist - Packaging & 1,17,46,430 57,57,793 B.Com. (Hons.) 28 24.01.1995 Nil
Graphics Design (ITD)
Rai R K 60 Divisional Chief Executive (ABD) & SBU Chief 3,97,26,818 1,95,60,595 B.A. (Economics), P.G.D. in Exports 40 16.08.1990 Britannia Industries Ltd.,
Executive (Agri SBU) & Imports Commercial Officer
Rajasekhar R 53 General Manager - Exports, Tobacco SBU (ABD) 1,25,27,477 60,94,875 B.Sc. (Agriculture) 31 03.03.1992 Nil
Rajesh V 39 General Manager - Product Development 1,06,44,839 65,47,628 M.M.S. 17 03.07.2006 Nil
(PPB - SBU)
Ralhan R 43 V.P. - Trade Marketing & Distribution - Northern 2,22,17,628 1,12,22,320 B.E., M.M.S. 20 04.06.2004 Kirloskar Oil Engines Ltd.,
District (TM & D) Graduate Engr. Trainee
Rama Prasad H N 57 SBU Chief Executive - Tobacco SBU (ABD) 2,90,97,271 1,28,35,099 B.Sc. (Agriculture), M.Sc. (Agriculture) 34 26.09.1988 Nil
Ramamurthi S (Dr.) 58 Chief Scientist & Head of Corporate 2,20,70,001 1,24,37,528 B.Sc., M.Sc. (Tech.), Ph.D. 29 27.08.2007 Hindustan Unilever Ltd.,
R&D (LS & T) Sr. Research Scientist
Ramesh V 57 General Manager - Manufacturing - 1,31,25,954 76,22,559 B.Sc., M.Sc. 35 11.09.2017 Britannia Industries Ltd., Regional
Biscuits (FBD) Manufacturing Head, South
Ramkumar P 52 V.P. - Finance, IT & Procurement (ESPB - SBU) 2,06,37,643 93,76,776 B.Com., C.W.A., A.C.A. 29 06.09.1999 Zuari Industries Ltd.,
Dy. Mgr. - Finance
Ranganathan S 48 V.P. - Finance (FBD) 2,01,90,260 90,58,428 B.Com. (Hons.), A.C.A. 25 01.09.1998 Phillips India Ltd.,
Accounts Officer
Rao K N 55 V.P. - Processing & Technology, Supply Chain, 1,67,63,868 82,12,412 B.Tech. 34 24.10.1988 Nil
Tobacco SBU (ABD)
Rao Renati V 53 General Manager - Exports & SO&P (ITD) 1,57,35,333 88,47,637 B.Sc. (Hons.), P.G.D.M. 29 01.04.1995 Wipro Ltd., Marketing Asst.
Rasquinha P C 58 Executive V.P. - Finance & MIS (PSPD) 2,34,28,088 1,27,68,526 B.Com. (Hons.), A.C.A., C.W.A. 35 15.07.1991 A.F. Ferguson & Co.,
Asst. Consultant
Rathi N 42 General Manager - ITC MAARS - Agri SBU (ABD) 1,06,59,409 57,30,613 B.E., P.G. Dip. in Rural Mgmt. 19 08.06.2005 Nil
Ravindranath V 59 General Manager - Corporate EHS 1,44,38,215 66,12,258 B.E., Certificate in Fire Protection 26 30.12.2009 Poet Consultants Pvt. Ltd.,
Additional Chief Engineer
Ravish H G 52 General Manager - Leaf Operations (NFCV), 1,28,88,160 63,31,156 B.Sc. (Agriculture) 31 26.02.1992 Nil
Tobacco SBU (ABD)
Ray Chaudhuri B 43 V.P. - Corporate Planning 2,24,92,098 98,51,136 B.Com. (Hons.), A.C.A. 22 01.03.2002 ABB Ltd., Asst. Financial Controller
Ray M 44 V.P. - Trade Marketing & Distribution - Eastern 1,61,76,645 93,86,439 B.Tech. 22 01.06.2001 Nil
District (TM & D)
Ray P 48 General Manager - Supply Chain Foods (TM & D) 1,35,35,452 77,97,720 B.Com., M.Com., P.G.D.M. 23 16.02.2001 Hindustan Unilever Ltd., T.S.I.
Reddy K V 57 Executive V.P. - Product Development - Staples, 2,45,60,332 1,29,46,819 B.Tech. 33 01.08.2001 Cargill India Pvt. Ltd.,
Spices, Noodles & Pasta (FBD) Production Manager
Roy Abhijit 57 Executive V.P. - Internal Audit 2,78,43,248 1,09,18,337 B.Com. (Hons.), A.C.A. 34 04.06.1990 E.L.M. (I) Ltd., Accounts Officer
Roy Agnidev 36 General Manager - Brands (ITD) 1,26,56,374 63,60,480 B.Sc. (Hons.), M.B.A. 13 11.06.2012 Bates 141, Brand Manager -
Strategic Planning
Rustagi A K 48 Chief Operating Officer - Chocolates, Coffee, 3,54,28,889 1,54,66,639 B.Tech., P.G.P.M. 26 01.10.2017 Unilever Inc. (London),
Confectionery & New Category Development (FBD) Global Brand Director
Saha G K 59 General Manager - Contracts & Purchase - 1,12,81,764 49,09,248 B.E. (Mechanical) 34 15.10.2008 CESC Limited, Manager -
Central Projects Organisation Material Purchase
Sahay S 52 Executive V.P. - Sales Operations & 2,82,76,211 1,29,62,437 B.A., P.G.D.B.A. 28 05.09.2002 Luxor Writing Instruments Ltd.,
Development (TM & D) Brand Manager
Saiprasad G V S (Dr.) 50 Senior Principal Scientist - Crop Sciences 1,32,38,091 76,49,042 B.Sc. (Agri), M.Sc. (Agri), Ph.D. - Plant 25 03.12.2007 Indian Institute of Horticultural
(LS & T) Physiology Research - Scientist
Sandeep C 52 Executive V.P. & Head - Central Projects 2,27,63,825 1,33,46,293 B.E. 31 24.05.1999 Kar Mobiles Ltd.,
Organisation Production Engineer
Sanganeria G 46 V.P. - Corporate Accounts 1,94,17,468 1,07,50,593 B.Com. (Hons.), A.C.S., A.C.A. 22 11.12.2000 Nil
Sangli D K A 48 Senior Principal Technologist - 1,44,65,463 84,09,157 B.Sc., M.Sc. 27 06.08.1996 Nil
Tobacco Flavours (ITD)

Employment
1 2 3 4 5 6 7 8 9
Saraf A 41 General Manager - Corporate Audit 1,05,36,088 64,60,096 B.Com. (Hons.), A.C.A. 19 01.06.2005 S.R. Batliboi & Co., Executive
Saravanan N 50 General Manager & ICML Head - 1,08,14,111 63,38,398 B.E. 29 11.02.2015 Asian Paints Ltd.,
Pudukottai (FBD) Senior Manager - Production
Sarda S 49 General Manager - Finance & Planning (ITD) 1,44,33,889 79,65,515 B.Com., A.C.A. 23 01.03.2007 Videocon Industries Ltd., Manager
Sawant S J 51 General Manager - Business Development - 1,38,48,932 80,96,693 B.Com., P.G.D.M. 23 01.10.2018 OSI Vista Foods Ltd.,
Frozen Snacks (FBD) Director Commercial
Seksaria S 50 Group Manager - Taxation 1,38,12,817 82,74,448 Dip. In Business Finance, A.C.S., 25 01.09.1998 CESC Ltd., Mgmt. Trainee
C.W.A., A.C.A.
Sen P 52 General Manager - Design & Quality Assurance - 1,13,01,921 54,33,748 B.E., M.C.E. 27 01.12.2010 Elbit India Healthcare Pvt. Ltd.,
Central Projects Organisation Chief Engineering Officer
Sengupta A 51 General Manager - Brands (ITD) 1,02,73,844 59,98,872 B.E., P.G.D.M. 26 19.12.2011 AC Nielsen Org. Marg Pvt. Ltd.,
Director - CR
Sengupta S 58 General Manager - Finance - Central Projects 1,09,96,226 53,48,477 B.Com., M.Com. 34 01.08.1989 Nil
Organisation
Senthil Kumaran S J 48 General Manager - Finance - Biscuits and 1,57,93,271 71,38,901 B.Com. (Hons.), C.W.A., A.C.A. 24 09.07.1999 L.M.W. Ltd., Audit Officer
Cakes (FBD)
Sequeira S 49 V.P. - Finance and IT (PCPBD) 2,00,54,026 90,88,931 B.Com. (Hons.), A.C.A. 25 01.09.1998 Berger Paints, Asst. Manager
Sethi N 39 General Manager - Brands (ITD) 1,15,33,020 62,62,052 B.Tech., M.B.A. 15 14.06.2010 Defence Research Dev. Org.,
Scientist
Shankar K 42 V.P. - Brands (ITD) 1,45,54,217 83,81,978 B.Tech., P.G.D.M. 18 25.09.2018 Godfrey Philips India Ltd., Group
Brand Manager
Shanmuga Sundaram A (Dr.) 56 General Counsel and Head of Corporate Legal 4,00,47,441 1,64,83,433 B.L., M.L., Ph.D. 34 20.10.1997 Maxworth Home Ltd.,
Manager, Legal
Sharma A 37 Senior Assistant General Counsel 1,02,22,055 51,75,949 B.A., LL.B. 13 14.06.2010 Nil
Sharma B 58 A.M. - Luxury Hotels (North) and G.M.- ITC 1,33,89,646 62,33,532 B.A. (Economics) 34 01.12.1988 @
Maurya (HD)
Sharma M 53 Chief Sustainability Officer 1,17,08,890 59,24,190 B.Sc., Executive Diploma in Gen. Mgmt. 30 01.12.2021 Tata Steel Limited,
Chief - Corporate Sustainability
Sharma S 45 V.P. - Channel & Dairy, Agri SBU (ABD) 1,67,15,018 88,69,815 M.Sc., P.G. Dip. in Agr. Business Mgmt. 20 09.06.2003 Nil
Shenoy T S M 55 Executive V.P. & Head - Corporate Accounts 2,79,06,732 1,25,23,641 B.Com. (Hons.), A.C.A. 35 03.08.1992 A.F. Ferguson & Co., Mgmt.
Consultant
Shere A H 46 Chief Operating Officer - Biscuits & Cakes (FBD) 3,38,27,779 1,95,19,863 B.A., M.B.A. 25 21.08.2019 Britannia Industries Ltd.,
Director Marketing
Shukla M 51 General Manager - Bengaluru Factory (ITD) 1,50,12,458 68,11,420 B.Tech. 31 01.08.2000 Pepsico Holdings Ltd.,
Shift Engineer
Singal S 52 Chief Operating Officer - Dairy & Beverages (FBD) 3,00,56,033 1,34,63,227 B.Sc., P.G.D.M. 27 01.07.2016 Dabur India Ltd., Head of
Marketing
Singh A P 40 V.P. & Head of Marketing - Snacks, Noodles & 1,46,61,782 73,28,932 B.Tech., P.G.D.M. 17 05.05.2008 Dabur India Ltd., Area Sales
Pasta Manager
Singh J 57 Corporate Financial Controller 3,33,52,057 1,43,32,364 B.Com. (Hons.), A.C.A. 35 01.04.1990 Lovelock & Lewes, Jr. Asst.
Singh V P 42 V.P. - Employee Relations (FBD) 1,42,20,347 65,35,608 B.A. (Hons.), P.G.D.M. 19 18.07.2007 Tata Motors Ltd., HR Manager
Singhi R K 58 Executive V.P. and Company Secretary 2,68,43,944 1,36,32,204 B.Com. (Hons.), LL.B., F.C.S. 38 01.08.1988 Chemcrown (I) Ltd.,
Asst. Secretary
Sipani S K 56 Head of Finance, Matches & Agarbatti SBU 1,55,09,610 68,17,281 B.Com., A.C.A., A.C.S., P.G.D.B.M. 34 01.10.1997 All India Tobacco Co. Ltd.,
Company Secretary
Somani S 49 General Manager - Corporate Audit 1,24,04,901 53,55,210 B.Com., C.W.A., C.S., A.C.A. 26 11.12.2000 Indian Rayon & Industries Ltd.,
Assistant Manager
Songadwala Z S 54 A.M. - South & G.M. - ITC Grand Chola (HD) 1,37,15,712 62,14,747 Bachelors in Hotel Management 32 01.02.1991 @
Sood A 39 General Manager & Head of Manufacturing - 1,38,09,705 65,89,052 B.Tech. 17 17.06.2013 Asian Paints Ltd., Manager -
Confectionery, Chocolates & Coffee (FBD) Production
Sri D K 38 General Manager & Head of Manufacturing - 1,22,05,772 59,34,474 B.Tech., M.Tech. 15 10.06.2008 Nil
Snacks, Noodles & Pasta (FBD)
Srinivas K 58 Chief Technologist - Blending & 2,40,08,892 1,05,50,484 B.Sc., M.Sc. 35 22.08.1988 Nil
Cigarette Design (ITD)
Srinivas S 49 V.P. - Marketing (PCPBD) 2,20,78,067 95,67,852 B.E., P.G.D.M. 25 01.06.2000 Computational Structural
Mechanics Pvt. Ltd.,
Marketing Executive
Srinivasan V P 50 Sr. Principal Technologist - PMD Process 1,67,40,676 97,17,288 Diploma in Mech. Engg., B.S. 30 23.02.1999 Union Carbide, Officer
Development (ITD) (Engg. Technology)
Srivastava S 44 General Manager - Supply Chain PCP & 1,05,53,083 59,68,397 B.E., E.P.G.D.M. 16 13.08.2012 ABB Limited, SCM Manager
MAB (TM & D)
Stephanos K G 58 Executive V.P. - Finance, MIS & T&RA (ITD) 2,88,45,960 1,15,65,057 B.Com. (Hons.), A.C.A. 35 01.07.1988 PricewaterhouseCoopers Pvt. Ltd.,
Jr. Officer
Subramanian V 51 General Manager - Manufacturing, Projects & 1,40,05,959 67,10,399 B.E. 29 06.10.2006 Asian Paints Ltd., Manager
EHS (PCPBD)
Sule S 57 Divisional Chief Executive (TM & D) 4,13,39,313 1,63,88,752 B.Com., M.I.B. 33 16.07.1990 Bayer India Ltd.,
Management Trainee

Employment
1 2 3 4 5 6 7 8 9
Suryavanshi R 45 V.P. - Competency Development & HR (TM & D) 1,78,22,045 81,82,990 B.M.S., P.G.D.M. 21 16.07.2003 Gabriel India Ltd., Mgmt. Trainee
Tandan S 63 On deputation 2,82,33,358 1,20,78,588 B.A. (Hons.), A.C.A. 37 01.10.1985 Nil
Tayal G 42 SBU Chief Executive - Matches & Agarbatti SBU 2,80,15,772 1,23,66,315 B.Tech. 20 09.06.2003 Nil
Thakar A 56 Executive V. P. - Finance, IT & Procurement (HD) 2,54,25,126 1,31,97,118 B.Com. (Hons.), A.C.A., M.B.A. 30 30.06.1992 Nil
Thakur N N 59 Executive V.P. - Sales & Category Development - 2,09,09,111 94,23,851 B.Sc., P.G.D.M. 36 01.09.1987 Nil
Cigarettes (TM & D)
Tripathy P K 52 General Manager - Sales and Manufacturing - 1,20,34,506 74,63,342 B.Sc., P.G.B.M. 27 06.06.2018 Metro Dairy Ltd., CEO
Fresh Dairy (East) (FBD)
Tunuguntla M R 42 General Manager - Finance - Staples and 1,63,76,359 73,84,185 B.Com., M.Com., A.C.A., D.I.R.M. 21 04.05.2005 Chemplast Sanmar Ltd., Asst.
Meals (FBD) Executive Manager
Tyagi K K (Dr.) 47 Principal Scientist - Analytical Standard (ITD) 1,11,61,199 68,58,381 B.Sc., M.Sc., Doctorate 26 01.07.2003 Forest Research Institute,
Research Fellow
Varghese M (Dr.) 59 Senior Principal Scientist - 1,11,97,895 62,35,851 B.Sc. (Agri), M.Sc. (Forestry), 32 14.02.2007 Indian Council of Forestry
Agro Forestry (LS & T) Ph.D. - Botany Research & Education-
Scientist - Gr: E
Vashistha S 37 General Manager - Sales & Category 1,23,37,403 59,84,195 B.Tech., P.G.D. 15 10.06.2008 Nil
Development - Foods (TM & D)
Vasireddy V V 49 Operations Manager 1,05,84,165 62,76,422 B.Sc. (Hons.), M.Sc. (Agriculture) 25 01.08.2007 APWELL Project, Agricultural
Production Trainee
Veeraswamy P 50 Vice President - HR (ABD) 1,62,95,128 85,28,834 B.Com., M.A. (P.M. & I.R.) 25 19.12.2013 Creamline Dairy Products Ltd.,
General Manager - HR
Veerubhotla V P 43 General Manager & Head of Consumer Insights & 1,66,62,297 72,90,144 B.Sc., M.Sc. (Statistics) 20 31.05.2012 Nielsen Bases, Manager
Analytics (FBD)
Venkataraman S N 59 Chief Executive (PPB - SBU) 2,78,98,051 1,33,76,254 B.Sc., M.B.A. 38 29.06.1985 Nil
Venneti S P Rao 56 Divisional Head - Marketing & 1,91,94,175 1,02,78,208 B.E., P.G.D. 24 20.06.2011 Century Pulp & Paper, President
Commercial (PSPD)
Verma A 40 General Manager & ICML Head - Haridwar (FBD) 1,37,74,693 76,03,838 B.Tech. 18 23.08.2010 Nestle India Ltd., Project Manager
Vijayakrishnan V (Dr.) 56 Chief Scientist & Head - Product Development 2,70,44,450 1,13,44,458 B.Sc., M.Sc., Ph.D. 27 02.05.2017 Unilever Inc., Global R & D -
and R&D (PCPBD) Design Director
Vikram R 52 Senior Associate General Counsel 1,35,85,531 84,22,093 B.A., LL.B. 28 18.07.2005 M/s. Janardana &
Janardana, Partner
Vinayaka H C 59 V.P. - Technical Services, Sustainability & 1,67,00,951 77,13,210 B.E. (Mech.) 35 23.05.2001 @
EHS (HD)
Vodela P K 53 Senior Principal Technologist - Blending & 1,30,50,798 58,28,704 B.Com., M.B.A. 28 01.07.1996 The Professional Couriers Pvt.
Cigarette Design (ITD) Ltd., Assistant Branch Manager
Wali P 53 Executive V.P. & Head - New Business 2,38,61,741 1,05,83,280 B.Tech., Sloan Fellowship in Management 32 16.08.1991 Nil
Development (London School of Business)
Wariah D S 56 V.P. & Head of Product Development - 2,22,05,189 1,14,25,844 B.E. 33 05.04.2005 Pepsico India Holdings Pvt.
Snacks (FBD) Ltd., G.M.
Yadav S M 53 Executive V.P. - Technology & 2,99,78,518 1,32,02,256 B.E., Dip. in International Business 32 24.08.2016 Mondelez International, Associate
Manufacturing (FBD) Director - Asia Pacific (Engineering)
Yarram Reddy S R 51 Associate General Counsel 1,40,61,565 68,33,271 B.A., LL.B. 26 16.06.2021 Pernod Ricard India Pvt. Ltd.,
GM - Legal
Other employees employed for a part of the year and in receipt of remuneration aggregating ` 8,50,000/- or more per month
Banerjee J 55 On deputation 72,27,696 36,46,641 B.Com. (Hons.), C.W.A., A.C.A. 35 04.05.1992 Price Waterhouse, Jr. Officer
Bezbaroa S K 60 Executive V.P. - Corporate EHS 80,67,722 52,21,472 B.E. (Elec.), P.G.D. (Safety Engg.), P.G.D. 39 02.06.1997 Tata Consulting Engineers Ltd.,
(Environmental Mgmt., Univ. of London) Engineer
Bhartee K 60 V.P. - Operations (HD) 69,52,139 39,08,222 B.Sc., Dip. in Hotel Mgmt. & Catering 38 18.04.2000 @
Technology
Chowdhary V 58 Divisional Manager - Process Excellence (ITD) 58,61,613 32,21,468 B.E. 37 01.09.1987 JK Synthetics, Assistant Engineer
Dasgupta K 46 Head of Marketing - Dairy & Juices (FBD) 1,64,21,090 81,75,922 B.Sc. (Hons.), P.G.D.C., P.G.D.M. 21 03.01.2020 Hindustan Unilever Ltd.,
G.M. Foods
Datta Sanjoy 60 Head - Marketing Research (ITD) 85,59,332 50,25,439 B.Tech., P.G.D.M. 34 01.11.1994 Smithkline Beecham, Marketing
Services Manager
Dharmendra V B (Dr.) 47 Head - Food Sciences (FBD) 82,31,257 53,40,054 B.Tech., M.Tech., M.S., Ph.D. 24 05.03.2020 E & J Gallo Winery, Applied
Technology Director
Dubey H 39 General Manager - Operations - Plant Protein 79,03,468 42,18,631 B.Tech., M.Tech. 17 01.07.2022 Shenzhen Next Vape Technologies
(FBD) Co. Ltd., CEO
Kataria G 47 Chief Digital & Information Officer (PSPD) 29,81,489 22,09,793 B.E. (C.S.E.), M.S. (S.E.) 24 06.03.2023 Sai Life Sciences Ltd., Chief Digital
& Information Officer
Mehta R R 62 Senior Associate General Counsel 96,82,902 50,78,887 B.Com. (Hons.), LL.B., LL.M., LL.M. 37 10.06.1994 Legal Practitioner
(Criminal Law), M.S.(Wis.), Ph.D.
Mittal K 55 Head - Sales (HD) 56,02,435 33,60,405 B.A., M.A., P.G. Diploma in Business 32 01.07.2022 Marriott International, General
Adminstration Manager
Moodliar A 57 On deputation 1,47,32,443 77,51,682 B.Com., M.B.A. 33 15.10.1993 @
Mukherjee Arya 60 General Manager - Finance (PCPBD) 92,21,034 53,54,454 B.Com. (Hons.), A.C.A. 35 16.10.1987 Nil

Employment
1 2 3 4 5 6 7 8 9
Mukherjee K 41 General Manager - Financial Accounts (FBD) 87,42,624 53,53,906 B.Com., A.C.A. 19 10.12.2003 %
Nengminthang J 38 General Manager - Special Projects (PCPBD) 77,67,873 45,90,586 B.Tech. 16 10.10.2019 Pepsico India Holdings Pvt.
Ltd., Productivity, Continuous
Improvement & LSS Head /
Factory Manager
Patel A M 53 Chief Commercial Officer (HD) 1,76,03,460 1,07,35,965 B.Sc. 31 01.08.2022 Hyatt Hotels Corporation,
V.P. - Sales & Marketing, India &
South Asia
Rangrass S 62 Group Head - LS & T, Central Projects, EHS & 3,18,01,225 1,69,22,445 B.Tech. 39 01.07.1982 Nil
Quality Assurance
Saha M K 47 General Manager & ICML Head - 1,17,34,272 55,62,745 B.Sc., B.Tech. 24 19.02.2007 Johnson Diversey India Pvt. Ltd.,
Ranjangaon (FBD) Manager
Salunkhe D J 49 Chief Executive (PPB - SBU) 1,08,00,592 54,81,505 B.E., M.B.A. 17 21.03.2019 3M India Ltd., Sr. G.M., Ops &
Cont. Imp.
Singh A 47 Divisional Manager - Central Projects (FBD) 14,74,399 7,80,111 B.E. 23 04.09.2006 Mcdowell & Company Ltd.,
Maintenance Manager
Singh S K 66 Group Head - Paper & Packaging 3,21,11,415 1,96,79,494 B.Tech. (Chem.) 45 21.06.1977 #
Tandon R 69 Executive Director 7,24,40,422 3,87,56,393 B.Sc., F.C.A. 44 01.01.1987 Triveni Handlooms Ltd.,
Finance Mgr. & Secy.
Tuli N 60 General Manager - Special Initiatives (HD) 38,57,804 24,36,498 Diploma in Hotel Mgmt. & Catering 22 21.02.2000 @
Umesh K S 64 Chief Manager - Corporate Affairs 91,20,526 51,98,248 B.A., M.S.W. 24 16.04.2001 Hotel Leelaventure Ltd.,
Manager HRD
Unnithan J 51 Head - Human Resources, Facility Management 1,52,62,803 43,24,551 B.A., Young Officer Course MHOW, 30 16.10.2002 M.Source India Pvt. Ltd. -
& EHS (LS & T) M.B.A., Diploma, Certificate Course Team Leader
in Comp.
Abbreviations denote :
ITD : India Tobacco Division ESPB : Education & Stationery Products Business
PSPD : Paperboards & Specialty Papers Division PPB : Packaging & Printing Business
ABD : Agri Business Division LS & T : Life Sciences & Technology
HD : Hotels Division TM & D : Trade Marketing & Distribution
FBD : Foods Business Division SBU : Strategic Business Unit
PCPBD : Personal Care Products Business Division
@ Previously employed with ITC Hotels Ltd. which was merged with the Company on March 23, 2005.
# Previously employed with ITC Bhadrachalam Paperboards Ltd. which was merged with the Company on March 13, 2002.
% Was on deputation to the Company’s Subsidiary and reverted to Company on July 25, 2022.
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, KMP 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: a) income tax, surcharge (as applicable) & education cess deducted at source
b) 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

Kolkata

KEY FINANCIAL RATIOS
[Pursuant to Schedule V(B) to the Securities and Exchange Board of India (Listing Obligations and
Disclosure Requirements) Regulations, 2015]
Key Financial Ratios for the Company:
FY23 FY22
(i) Operating Profit Margin (%) 35.6 33.6
(ii) Net Profit Margin (%)1 26.9 25.5
(iii) Debtors Turnover 32.5 29.2
(iv) Inventory Turnover 6.7 6.1
(v) Current Ratio 2.8 2.7
(vi) Return on Net Worth (%)1 29.0 25.0
Notes:
1. Net Profit Margin and Return on Net Worth ratios have been computed based on Profit After Tax
(before exceptional items).
2. Interest Coverage Ratio and Debt-Equity ratio are not relevant for the Company as it has negligible debt.

Kolkata

Independent Auditor’s Report on compliance with the conditions of Corporate Governance as per provisions
of Chapter IV of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements)
Regulations, 2015, as amended
The Members of ITC Limited
1. The Corporate Governance Report prepared by ITC Limited (hereinafter the “Company”), 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, as amended (“the Listing Regulations”) (‘Applicable criteria’) for the year ended March 31, 2023, and the said
Report will be submitted by the Company to the Stock Exchanges as part of the Annual Report.
Management’s Responsibility
2. 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. This responsibility also includes the design, implementation and maintenance of internal control relevant to the
preparation and presentation of the Corporate Governance Report.
3. The Management along with the Board of Directors are also responsible for ensuring that the Company complies with the conditions of Corporate Governance
as stipulated in the Listing Regulations, issued by the Securities and Exchange Board of India.
4. Pursuant to the requirements of the Listing Regulations, 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.
5. We conducted our examination of the Corporate Governance Report in accordance with the Guidance Note on Reports or Certificates for Special Purposes
and the Guidance Note on Certification of Corporate Governance, both issued by the Institute of Chartered Accountants of India (“ICAI”). The Guidance Note
on Reports or Certificates for Special Purposes requires that we comply with the ethical requirements of the Code of Ethics issued by ICAI.
6. We have complied with the relevant applicable requirements of the Standard on Quality Control (SQC) 1, Quality Control for Firms that Perform Audits and
Reviews of Historical Financial Information, and Other Assurance and Related Services Engagements.
7. The procedures selected depend on the auditor’s judgement, including the assessment of the risks associated in compliance of the Corporate Governance
Report with the applicable criteria. Summary of procedures performed include:
i. Read and understood the information prepared by the Company and included in its Corporate Governance Report;
ii. Obtained and verified that the composition of the Board of Directors with respect to executive and non-executive directors has been met throughout the
reporting period;
iii. Obtained and read the Register of Directors as on March 31, 2023 and verified that atleast one independent woman director was on the Board of Directors
throughout the year;
iv. Obtained and read the minutes of the following committee meetings / other meetings held from April 01, 2022 to March 31, 2023:
(a) Board of Directors;
(b) Audit Committee;
(c) Annual General Meeting (AGM);
(d) Nomination and Remuneration Committee;
(e) Stakeholders Relationship Committee;
(f) Risk Management Committee
v. Obtained necessary declarations from the directors of the Company.
vi. Obtained and read the policy adopted by the Company for related party transactions.
vii. Obtained the schedule of related party transactions during the year and balances at the year-end.
viii. Obtained and read the minutes of the audit committee meeting wherein such related party transactions have been pre-approved by the audit committee.
ix. Performed necessary inquiries with the management and also obtained necessary specific representations from management.
8. The above-mentioned procedures include examining evidence supporting the particulars in the Corporate Governance Report on a test basis. Further, our
scope of work under this report did not involve us performing audit tests for the purposes of expressing an opinion on the fairness or accuracy of any of the
financial information or the financial statements of the Company taken as a whole.
Opinion
9. Based on the procedures performed by us, as referred in paragraph 7 above, and according to the information and explanations given to us, we are of the
opinion that the Company has complied with the conditions of Corporate Governance as specified in the Listing Regulations, as applicable for the year ended
March 31, 2023, referred to in paragraph 4 above.
Other matters and Restriction on Use
10. This report is neither an assurance as to the future viability of the Company nor the efficiency or effectiveness with which the management has conducted the
affairs of the Company.
11. This report is addressed to and provided to the members of the Company solely for the purpose of enabling it to comply with its obligations under the
Listing Regulations with reference to compliance with the relevant regulations of Corporate Governance and should not be used by any other person or for
any other purpose. Accordingly, we do not accept or assume any liability or any duty of care or for any other purpose or to any other party to whom it is shown
or into whose hands it may come without our prior consent in writing. We have no responsibility to update this report for events and circumstances occurring
after the date of this report.
For S R B C & CO LLP
Chartered Accountants
ICAI Firm Registration Number: 324982E/E300003
per Arvind Sethi
Partner
Place of Signature: Frankfurt Membership Number: 89802
Date: May 18, 2023 UDIN: 23089802BGYPWI3242

CEO and CFO Compliance Certificate
We, S. Puri, Chairman & Managing Director and S. Dutta, Director & Chief Financial Officer
certify that :
a) We have reviewed the Financial Statements including the Cash Flow Statement for the
year ended 31st March, 2023 and to the best of our knowledge and belief :
i) these Statements do not contain any materially untrue statement or omit any material
fact or contain statements that might be misleading;
ii) 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.
b) To the best of our knowledge and belief, no transactions entered into by the Company
during the year ended 31st March, 2023 are fraudulent, illegal or violative of the
ITC Code of Conduct.
c) 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. Deficiencies in the design or operation of such
internal controls, if any, of which we are aware have been disclosed to the Auditors and
the Audit Committee and steps have been taken to rectify these deficiencies.
d) i) There has not been any significant change in the internal controls over financial
reporting during the year under reference;
ii) There has not been any significant change in the accounting policies during the year
requiring disclosure in the notes to the Financial Statements; and
iii) We are not aware of any instance during the year of significant fraud with
involvement therein of the management or any employee having a significant role in
the Company’s internal control systems over financial reporting.
Kolkata, India S. DUTTA Director & Chief Financial Officer

May 16, 2023 S. PURI Chairman & Managing Director

Balance Sheet as at 31st March, 2023
As at As at
Note 31st March, 2023 31st March, 2022
(` in Crores) (` in Crores)
ASSETS
Non-current assets
(a) Property, Plant and Equipment 3A 20491.32 19559.15
(b) Capital work-in-progress 3B 1681.47 2442.34
(c) Investment Property 3C 352.26 364.20
(d) Goodwill 3D 577.20 577.20
(e) Other Intangible assets 3E 2037.42 2007.22
(f) Other Intangible assets under development 3F 15.13 23.84
(g) Right of use assets 3G 715.91 712.84
(h) Financial Assets
(i) Investments 4 16363.55 15657.32
(ii) Loans 5 4.07 5.06
(iii) Others 6 3608.23 19975.85 1572.40 17234.78
(i) Other non-current assets 7 1211.74 47058.30 1228.92 44150.49
Current assets
(a) Inventories 8 10593.90 9997.77
(b) Financial Assets
(i) Investments 9 16357.07 11624.95
(ii) Trade receivables 10 2321.33 1952.50
(iii) Cash and cash equivalents 11 206.88 184.97
(iv) Other Bank Balances 12 3624.38 3692.97
(v) Loans 5 5.95 5.73
(vi) Others 6 705.84 23221.45 2287.97 19749.09
(c) Other current assets 7 1388.09 35203.44 1195.15 30942.01
TOTAL ASSETS 82261.74 75092.50
EQUITY AND LIABILITIES
Equity
(a) Equity Share capital 13 1242.80 1232.33
(b) Other Equity 66351.00 67593.80 60167.24 61399.57
Liabilities
Non-current liabilities
(a) Financial Liabilities
(i) Borrowings 14 3.28 4.54
(ii) Lease Liabilities 15 273.59 259.79
(iii) Other financial liabilities 16 152.49 429.36 96.50 360.83
(b) Provisions 17 201.83 186.87
(c) Deferred tax liabilities (Net) 18 1621.13 2252.32 1667.14 2214.84
Current liabilities
(ii) Trade payables
Total outstanding dues of micro enterprises
and small enterprises 137.50 100.96
Total outstanding dues of creditors other than
micro enterprises and small enterprises 4213.76 4122.44
(iii) Lease Liabilities 15 46.54 46.09
(iv) Other financial liabilities 16 1730.68 6129.74 1503.59 5773.82
(b) Other current liabilities 19 5446.16 5097.28
(c) Provisions 17 63.59 55.60
(d) Current Tax Liabilities (Net) 20 776.13 12415.62 551.39 11478.09
TOTAL EQUITY AND LIABILITIES 82261.74 75092.50
The accompanying notes 1 to 30 are an integral part of the Financial Statements.
In terms of our report attached On behalf of the Board
Chartered Accountants S. PURI Chairman & Managing Director
Firm Registration Number: 324982E / E300003
S. DUTTA Director & Chief Financial Officer
Arvind Sethi
Partner R. K. SINGHI Company Secretary
Frankfurt, May 18, 2023 Kolkata, May 18, 2023

Statement of Profit and Loss for the year ended 31st March, 2023
For the year ended For the year ended
I Revenue From Operations 21A, 21B 70251.28 59745.56

II Other Income 22 2437.61 2589.97
III Total Income (I + II) 72688.89 62335.53
IV EXPENSES
Cost of materials consumed 19809.83 16064.50
Purchases of Stock-in-Trade 9109.85 10734.48
Changes in inventories of finished goods, Stock-in-Trade,
work-in-progress and intermediates (39.50) (566.46)
Excise duty 4208.01 3404.29
Employee benefits expense 23 3569.46 3061.99
Finance costs 24 41.81 41.95
Depreciation and amortization expense 1662.73 1652.15
Other expenses 25 9649.16 8113.10
Total expenses (IV) 48011.35 42506.00
V Profit before exceptional items and tax (III - IV) 24677.54 19829.53
VI Exceptional Items 27(i) 72.87 –
VII Profit before tax (V + VI) 24750.41 19829.53
VIII Tax expense:
Current Tax 26 6025.32 4833.88
Deferred Tax 26 (28.22) (62.18)
IX Profit for the year (VII - VIII) 18753.31 15057.83
Other Comprehensive Income
A (i) Items that will not be reclassified to profit or loss:
– Remeasurements of the defined benefit plans 27(vi) (21.81) 31.62
– Equity instruments through other comprehensive
income 91.90 545.25
– Effective portion of gains / (losses) on designated
portion of hedging instruments in a cash flow hedge 21.22 (11.90)
(ii) Income tax relating to items that will not be reclassified
to profit or loss 26 (0.34) (4.96)
B (i) Items that will be reclassified to profit or loss:
– Debt instruments through other comprehensive
income (35.01) 3.71
– Effective portion of gains / (losses) on designated
portion of hedging instruments in a cash flow hedge (47.45) 14.78
(ii) Income tax relating to items that will be reclassified to
profit or loss 26 20.75 (4.65)
X Other Comprehensive Income [A (i + ii) + B (i + ii)] 29.26 573.85
XI Total Comprehensive Income for the year (IX + X) 18782.57 15631.68
XII Earnings per equity share (Face Value ` 1.00 each): 27(ii)
(1) Basic (in `) 15.15 12.22
(2) Diluted (in `) 15.11 12.22

Arvind Sethi

148
Statement of changes in equity for the year ended 31st March, 2023
A. Equity Share Capital (` in Crores)
Balance at the beginning Changes in equity share Balance at the end of the
of the reporting year capital during the year reporting year
For the year ended 31st March, 2023 1232.33 10.48 1242.80
ITC Limited
B. Other Equity (` in Crores)

Reserves and Surplus Items of other comprehensive income
Debt Equity
Share Instruments Instruments Effective Foreign Total
Options Capital through Other through Other portion of Currency
Capital Securities Outstanding Redemption Contingency General Retained Comprehensive Comprehensive Cash Flow Translation
Reserve Premium Account Reserve Reserve Reserve Earnings Income Income Hedges Reserve

Balance as at 1st April, 2022 2.48 9988.14 1316.33 0.30 363.05 17585.31 30060.39 2.78 793.58 14.33 40.55 60167.24
Profit for the year – – – – – – 18753.31 – – – – 18753.31
Other Comprehensive Income (net of tax) – – – – – – (16.81) (26.20) 91.90 (19.63) – 29.26
Total Comprehensive Income for the year – – – – – – 18736.50 (26.20) 91.90 (19.63) – 18782.57
Issue of equity shares under ITC Employee
Stock Option Schemes – 2466.92 – – – – – – – – – 2466.92
Dividends
– Final Dividend (2021-22 - ` 6.25 per share) – – – – – – (7702.03) – – – – (7702.03)
– Interim Dividend (2022-23 - ` 6.00 per share) – – – – – – (7448.41) – – – – (7448.41)
Dividend distribution tax refund received – – – – – – 20.43 – – – – 20.43
Transfer from Share Options Outstanding
Account on exercise and lapse – 610.56 (635.99) – – – 20.82 – – – – (4.61)
Transferred to initial carrying amount of hedged
items (net of tax) – – – – – – – – – 7.78 – 7.78
Recognition of share based payment – – 61.11 – – – – – – – – 61.11
Balance as at 31st March, 2023 2.48 13065.62 741.45 0.30 363.05 17585.31 33687.70 (23.42) 885.48 2.48 40.55 66351.00
Balance as at 1st April, 2021 2.48 9611.64 1706.52 0.30 363.05 17585.31 28210.63 – 248.33 4.93 40.55 57773.74
Profit for the year – – – – – – 15057.83 – – – – 15057.83
Other Comprehensive Income (net of tax) – – – – – – 23.66 2.78 545.25 2.16 – 573.85
Total Comprehensive Income for the year – – – – – – 15081.49 2.78 545.25 2.16 – 15631.68
Issue of equity shares under ITC Employee
Stock Option Schemes – 290.38 – – – – – – – – – 290.38
Statement of changes in equity for the year ended 31st March, 2023
B. Other Equity (Contd.) (` in Crores)
Reserves and Surplus Items of other comprehensive income
Debt Equity
Share Instruments Instruments Effective Foreign Total
Options Capital through Other through Other portion of Currency
Capital Securities Outstanding Redemption Contingency General Retained Comprehensive Comprehensive Cash Flow Translation
Reserve Premium Account Reserve Reserve Reserve Earnings Income Income Hedges Reserve
Dividend –
– Final Dividend (2020-21 - ` 5.75 per share) – – – – – – (7077.59) – – – – (7077.59)
– Interim Dividend (2021-22 - ` 5.25 per share) – – – – – – (6469.48) – – – – (6469.48)
Transfer from Share Options Outstanding
Account on exercise and lapse – 86.12 (423.70) – – – 315.34 – – – – (22.24)
items (net of tax) – – – – – – – – – 7.24 – 7.24
Recognition of share based payment – – 33.51 – – – – – – – – 33.51
Balance as at 31st March, 2022 2.48 9988.14 1316.33 0.30 363.05 17585.31 30060.39 2.78 793.58 14.33 40.55 60167.24
The Board of Directors of the Company has recommended Special Dividend of ` 2.75 per Ordinary Share in addition to the Final Dividend of ` 6.75 per Ordinary Share for the financial year ended 31st March, 2023 (previous year - ` 6.25 per
Ordinary Share) to be paid on fully paid Equity Shares amounting to ` 11806.61 Crores. The said Final and Special Dividend is subject to the approval of the shareholders at the Annual General Meeting and has not been included as a liability
in these financial statements.
Together with the Interim Dividend of ` 6.00 per Ordinary Share (previous year - ` 5.25 per Ordinary Share) paid on 3rd March, 2023, the total Equity Dividend for the financial year ended 31st March, 2023 is ` 15.50 per Ordinary Share
(previous year - ` 11.50 per Ordinary Share).
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.
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.
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.
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.
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.
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.
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.
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
ITC Limited
amounts reclassified, if any, to profit or loss when those instruments are disposed of.
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.
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.
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.


Arvind Sethi
149
Cash Flow Statement for the year ended 31st March, 2023
31st March, 2023 31st March, 2022
A. Cash Flow from Operating Activities
PROFIT BEFORE TAX 24750.41 19829.53
ADJUSTMENTS FOR:
Share based payments to employees 58.50 32.51
Finance costs 41.81 41.95
Interest Income (1434.53) (1004.59)
Dividend Income (556.90) (857.46)
(Gain) / Loss on sale of property, plant and equipment,
lease termination - Net 4.53 (59.05)
Doubtful and bad debts (0.93) 10.64
Doubtful and bad advances, loans and deposits 1.16 1.15
Impairment of investment in joint venture 8.50 –
Net gain arising on financial instruments measured at amortised
cost / mandatorily measured at fair value through profit or loss (416.74) (524.19)
Foreign currency translations and transactions - Net 37.89 (593.98) 11.07 (695.82)
OPERATING PROFIT BEFORE WORKING CAPITAL CHANGES 24156.43 19133.71
ADJUSTMENTS FOR:
Trade receivables, advances and other assets (603.25) (235.39)
Inventories (596.13) (526.90)
Trade payables, other liabilities and provisions 755.24 (444.14) 946.39 184.10
CASH GENERATED FROM OPERATIONS 23712.29 19317.81
Income tax paid (5800.59) (4510.02)
NET CASH FROM OPERATING ACTIVITIES 17911.70 14807.79
B. Cash Flow from Investing Activities
Purchase of property, plant and equipment, intangibles,
ROU asset etc. (1858.32) (1812.03)
Sale of property, plant and equipment 48.86 137.22
Purchase of current investments (72925.91) (60325.53)
Sale / redemption of current investments 67720.51 63554.78
Payment towards contingent purchase consideration (63.75) (71.25)
Investment in subsidiaries (1184.14) (427.24)
Investment in associate (1.88) (1.87)
Purchase of non-current investments (2349.41) (4777.02)
Sale / redemption of non-current investments 4057.60 2731.24
Redemption of investment in subsidiary 18.00 –
Advance received towards divestment of shares held in joint venture
[Refer Note 27(x)] 56.00 –
Dividend Income 556.90 857.46
Interest received 1216.27 962.97
Investment in bank deposits
(original maturity more than 3 months) (7427.20) (3525.01)
Redemption / maturity of bank deposits
(original maturity more than 3 months) 5476.33 3617.42
Investment in deposit with housing finance company (3500.00) (3011.37)
Redemption / maturity of deposit with housing finance company 5000.00 578.82
Loans given (8.21) (12.51)
Loans realised 8.98 6.86
NET CASH USED IN INVESTING ACTIVITIES (5159.37) (1517.06)

Cash Flow Statement for the year ended 31st March, 2023
C. Cash Flow from Financing Activities
Proceeds from issue of share capital 2477.39 291.82
Repayment of non-current borrowings (0.74) (0.35)
Principal payment of lease liabilities (51.97) (54.42)
Interest paid (40.04) (42.14)
Net increase in statutory restricted accounts balances 14.94 15.13
Dividend paid (15150.44) (13547.07)
Dividend distribution tax refund received 20.43 –
NET CASH USED IN FINANCING ACTIVITIES (12730.43) (13337.03)
NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS 21.90 (46.30)
OPENING CASH AND CASH EQUIVALENTS 184.98 231.28
CLOSING CASH AND CASH EQUIVALENTS 206.88 184.98
Notes:
1. The above Cash Flow Statement has been prepared under the “Indirect Method” as set out in Ind AS - 7 “Statement of Cash Flows”
2. CASH AND CASH EQUIVALENTS:
Cash and cash equivalents as above 206.88 184.98
Unrealised gain / (loss) on foreign currency cash and cash equivalents … (0.01)
Cash and cash equivalents (Note 11) 206.88 184.97
3. Net Cash Flow from Operating Activities includes an amount of ` 328.80 Crores (2022 - ` 340.96 Crores) spent towards Corporate
Social Responsibility.

Arvind Sethi

Notes to the Financial Statements
1. Significant Accounting Policies
Statement of Compliance cycle and other criteria set out in the Schedule III to the
These financial statements have been prepared in Companies Act, 2013 and Ind AS 1 – Presentation of
accordance with Indian Accounting Standards (Ind AS) Financial Statements based on the nature of products and
notified under Section 133 of the Companies Act, 2013. the time between the acquisition of assets for processing
The financial statements have also been prepared in and their realisation in cash and cash equivalents.
accordance with the relevant presentation requirements of Property, Plant and Equipment – Tangible Assets
the Companies Act, 2013. The Company adopted Ind AS
Property, plant and equipment are stated at cost of
from 1st April, 2016.
acquisition or construction less accumulated depreciation
Basis of Preparation and impairment, if any. For this purpose, cost includes
The financial statements are prepared in accordance with deemed cost which represents the carrying value of
the historical cost convention, except for certain items that property, plant and equipment recognised as at 1st April,
are measured at fair values, as explained in the accounting 2015 measured as per the previous Generally Accepted
policies. Accounting Principles (GAAP).
Fair Value is the price that would be received to sell an asset Cost is inclusive of inward freight, duties and taxes
or paid to transfer a liability in an orderly transaction between and incidental expenses related to acquisition.
market participants at the measurement date, regardless of In respect of major projects involving construction, related
whether that price is directly observable or estimated using pre-operational expenses form part of the value of assets
another valuation technique. In estimating the fair value of capitalised. Expenses capitalised also include applicable
an asset or a liability, the Company takes into account the borrowing costs for qualifying assets, if any. All upgradation /
characteristics of the asset or liability if market participants enhancements are charged off as revenue expenditure
would take those characteristics into account when pricing unless they bring similar significant additional benefits.
the asset or liability at the measurement date. Fair value for An item of property, plant and equipment is derecognised
measurement and / or disclosure purposes in these financial upon disposal or when no future economic benefits
statements is determined on such a basis, except for are expected to arise from the continued use of asset.
share-based payment transactions that are within the scope Any gain or loss arising on the disposal or retirement of an
of Ind AS 102 – Share-based Payment, leasing transactions item of property, plant and equipment is determined as the
that are within the scope of Ind AS 116 – Leases, difference between the sales proceeds and the carrying
and measurements that have some similarities to fair amount of the asset and is recognised in Statement of
value but are not fair value, such as net realisable Profit and Loss.
value in Ind AS 2 – Inventories or value in use in Depreciation of these assets commences when the assets
Ind AS 36 – Impairment of Assets. are ready for their intended use which is generally on
The preparation of financial statements in conformity commissioning. Items of property, plant and equipment
with Ind AS requires management to make judgements, are depreciated in a manner that amortizes the cost (or
estimates and assumptions that affect the application of the other amount substituted for cost) of the assets after
accounting policies and the reported amounts of assets and commissioning, less its residual value, over their useful
liabilities, the disclosure of contingent assets and liabilities lives as specified in Schedule II of the Companies Act, 2013
at the date of the financial statements, and the reported on a straight line basis. Land is not depreciated.
amounts of revenues and expenses during the year. Actual The estimated useful lives of property, plant and equipment
results could differ from those estimates. The estimates of the Company are as follows:
and underlying assumptions are reviewed on an ongoing
basis. Revisions to accounting estimates are recognised Buildings 30-60 Years
in the period in which the estimate is revised if the revision Leasehold Improvements Shorter of lease period or
affects only that period; they are recognised in the period estimated useful lives
of the revision and future periods if the revision affects both
Plant and Equipment 3-25 Years
current and future periods.
Furniture and Fixtures 8-10 Years
Operating Cycle
Vehicles 8-10 Years
All assets and liabilities have been classified as current
Office Equipment 5 Years
or non-current as per the Company’s normal operating

1. Significant Accounting Policies (Contd.)
Assets held under finance leases are depreciated over their its cost less accumulated amortization and / or impairment
expected useful lives on the same basis as owned assets losses.
or, where shorter, the term of the relevant lease. The useful lives of intangible assets are reviewed annually to
Property, plant and equipment’s residual values and useful determine if a reset of such useful life is required for assets
lives are reviewed at each Balance Sheet date and changes, with finite lives and to confirm that business circumstances
if any, are treated as changes in accounting estimate. continue to support an indefinite useful life assessment for
assets so classified. Based on such review, the useful life
Intangible Assets
may change or the useful life assessment may change from
Intangible Assets that the Company controls and from indefinite to finite. The impact of such changes is accounted
which it expects future economic benefits are capitalised for as a change in accounting estimate.
upon acquisition and measured initially:
Investment Property
a. for assets acquired in a business combination, at fair
value on the date of acquisition. Properties that are held for long-term rental yields and / or
for capital appreciation are classified as investment
b. for separately acquired assets, at cost comprising
properties. Investment properties are stated at cost of
the purchase price (including import duties and
acquisition or construction less accumulated depreciation
non-refundable taxes) and directly attributable costs to
and impairment, if any. Depreciation is recognised using
prepare the asset for its intended use.
the straight line method so as to amortise the cost of
Internally generated assets for which the cost is clearly investment properties over their useful lives as specified in
identifiable are capitalised at cost. Research expenditure is Schedule II of the Companies Act, 2013. Freehold land and
recognised as an expense when it is incurred. Development properties under construction are not depreciated.
costs are capitalised only after the technical and commercial
Transfers to, or from, investment properties are made at
feasibility of the asset for sale or use has been established.
the carrying amount when and only when there is a change
Thereafter, all directly attributable expenditure incurred to
in use.
prepare the asset for its intended use are recognised as the
cost of such assets. Internally generated brands, websites An item of investment property is derecognised upon
and customer lists are not recognised as intangible assets. disposal or when no future economic benefits are expected
to arise from the continued use of asset. Any gain or loss
The carrying value of intangible assets includes deemed
arising on the disposal or retirement of an item of investment
cost which represents the carrying value of intangible
property is determined as the difference between the sales
assets recognised as at 1st April, 2015 measured as per
proceeds and the carrying amount of the property and is
the previous GAAP.
recognised in the Statement of Profit and Loss.
The useful life of an intangible asset is considered finite
Income received from investment property is recognised
where the rights to such assets are limited to a specified in the Statement of Profit and Loss on a straight line basis
period of time by contract or law (e.g. patents, licences, over the term of the lease.
trademarks, franchise and servicing rights) or the likelihood
of technical, technological obsolescence (e.g. computer Impairment of Assets
software, design, prototypes) or commercial obsolescence Impairment loss, if any, is provided to the extent, the
(e.g. lesser known brands are those to which adequate carrying amount of assets or cash generating units exceed
marketing support may not be provided). If, there are no their recoverable amount.
such limitations, the useful life is taken to be indefinite. Recoverable amount is higher of an asset’s net selling
Intangible assets that have finite lives are amortized over price and its value in use. Value in use is the present value
their estimated useful lives by the straight line method of estimated future cash flows expected to arise from the
unless it is practical to reliably determine the pattern of continuing use of an asset or cash generating unit and from
benefits arising from the asset. An intangible asset with an its disposal at the end of its useful life.
indefinite useful life is not amortized. Impairment losses recognised in prior years are reversed
All intangible assets are tested for impairment. Amortization when there is an indication that the impairment losses
expenses and impairment losses and reversal of impairment recognised no longer exist or have decreased. Such
losses are taken to the Statement of Profit and Loss. Thus, reversals are recognised as an increase in carrying
after initial recognition, an intangible asset is carried at amounts of assets to the extent that it does not exceed the

carrying amounts that would have been determined (net of (i) Fair value hedges
amortization or depreciation) had no impairment loss been Changes in fair value of the designated portion of
recognised in previous years. hedging instruments that qualify as fair value hedges
Inventories are recognised in profit or loss immediately, together
with any changes in the fair value of the hedged asset
Inventories are stated at lower of cost and net realisable
value. The cost is calculated on weighted average method. or liability that are attributable to the hedged risk.
Cost comprises expenditure incurred in the normal course The change in the fair value of the designated portion
of business in bringing such inventories to their present of hedging instrument and the change in fair value of
location and condition and includes, where applicable, the hedged item attributable to the hedged risk are
appropriate overheads based on normal level of activity. recognised in Statement of Profit and Loss in the line
Net realisable value is the estimated selling price less item relating to the hedged item.
estimated costs for completion and sale. Hedge accounting is discontinued when the hedging
Obsolete, slow moving and defective inventories are instrument is derecognised, expires or is sold,
identified from time to time and, where necessary, a terminated, or exercised, or when it no longer qualifies
provision is made for such inventories. for hedge accounting. The fair value adjustment to the
carrying amount of the hedged item arising from the
Foreign Currency Transactions hedged risk is amortised to profit or loss from that date.
The functional and presentation currency of the Company
(ii) Cash flow hedges
is Indian Rupee.
The effective portion of changes in the fair value of
Transactions in foreign currency are accounted for
hedging instruments that are designated and qualify
at the exchange rate prevailing on the transaction date.
as cash flow hedges is recognised in the other
Gains / losses arising on settlement as also on translation
comprehensive income and accumulated as ‘Cash
of monetary items are recognised in the Statement of Profit
Flow Hedge Reserve’. The gains / losses relating to the
and Loss.
ineffective portion are recognised immediately in the
Exchange differences arising on monetary items that, in Statement of Profit and Loss.
substance, form part of the Company’s net investment
Amounts previously recognised and accumulated in
in a foreign operation (having a functional currency other
other comprehensive income are reclassified to profit
than Indian Rupee) are accumulated in Foreign Currency
or loss when the hedged item affects the Statement
Translation Reserve.
of Profit and Loss. However, when the hedged item
Derivatives and Hedge Accounting results in the recognition of a non – financial asset,
Derivatives are initially recognised at fair value and are such gains / losses are transferred from equity (but not
subsequently remeasured to their fair value at the end as reclassification adjustment) and included in the initial
of each reporting period. The resulting gains / losses are measurement cost of the non–financial asset.
recognised in Statement of Profit and Loss immediately Hedge accounting is discontinued when the hedging
unless the derivative is designated and effective as a instrument is derecognised, expires or is sold,
hedging instrument, in which case the resulting gain / loss terminated, or exercised, or when it no longer qualifies
is recognised as per the hedge accounting principles for hedge accounting. Any gains / losses recognised
stated below. in other comprehensive income and accumulated in
The Company complies with the principles of hedge equity at that time remain in equity and is reclassified
a c c o u n t i n g w h e r e d e r i v a t i v e c o n t r a c t s a n d / o r when the underlying transaction is ultimately recognised.
non-derivative financial assets / liabilities that are permitted When an underlying transaction is no longer expected
under applicable accounting standards are designated to occur, the gains / losses accumulated in equity
as hedging instruments. At the inception of the hedge are recognised immediately in the Statement of Profit
relationship, the Company documents the relationship and Loss.
between the hedging instrument and the hedged item,
along with the risk management objectives and its strategy Investment in Subsidiaries, Associates and Joint Ventures
for undertaking hedge transaction, which can be a fair value Investment in subsidiaries, associates and joint ventures
hedge or a cash flow hedge. are carried at cost less accumulated impairment, if any.

Financial instruments, Financial assets, Financial unrealised gains and losses arising from changes in the
liabilities and Equity Instruments fair value being recognised in the Statement of Profit
Financial assets and financial liabilities are recognised and Loss in the period in which they arise.
when the Company becomes a party to the contractual Trade Receivables, Advances, Security Deposits, Cash
provisions of the relevant instrument and are initially and Cash equivalents etc. are classified for measurement
measured at fair value except for trade receivables that do at amortised cost while investments may fall under any of
not contain a significant financing component, which are the aforesaid classes. However, in respect of particular
measured at transaction price. Transaction costs that are investments in equity instruments that would otherwise
directly attributable to the acquisition or issue of financial be measured at fair value through profit or loss, an
assets and financial liabilities (other than financial assets irrevocable election at initial recognition may be made to
and financial liabilities measured at fair value through profit present subsequent changes in fair value through other
or loss) are added to or deducted from the fair value on comprehensive income.
initial recognition of financial assets or financial liabilities. Impairment: The Company assesses at each reporting
Purchase or sale of financial assets that require delivery date whether a financial asset (or a group of financial
of assets within a time frame established by regulation assets) such as investments, trade receivables, advances
or convention in the market place (regular way trades) and security deposits held at amortised cost and financial
are recognised on the trade date, i.e., the date when the assets that are measured at fair value through other
Company commits to purchase or sell the asset. comprehensive income are tested for impairment based
on evidence or information that is available without undue
Financial Assets cost or effort. Expected credit losses are assessed and loss
Recognition: Financial assets include Investments, Trade allowances recognised if the credit quality of the financial
Receivables, Advances, Security Deposits, Cash and Cash asset has deteriorated significantly since initial recognition.
equivalents. Such assets are initially recognised at fair value Reclassification: When and only when the business
or transaction price, as applicable, when the Company model is changed, the Company shall reclassify all affected
becomes party to contractual obligations. The transaction financial assets prospectively from the reclassification date
price includes transaction costs unless the asset is being as subsequently measured at amortised cost, fair value
fair valued through the Statement of Profit and Loss. through other comprehensive income or fair value through
Classification: Management determines the classification profit or loss without restating the previously recognised
of an asset at initial recognition depending on the purpose gains, losses or interest and in terms of the reclassification
for which the assets were acquired. The subsequent principles laid down in the Ind AS relating to Financial
measurement of financial assets depends on such Instruments.
classification. Derecognition: Financial assets are derecognised when
the right to receive cash flows from the assets has expired,
Financial assets are classified as those measured at:
or has been transferred, and the Company has transferred
(a) amortised cost, where the financial assets are held substantially all of the risks and rewards of ownership.
solely for collection of cash flows arising from payments Concomitantly, if the asset is one that is measured at:
of principal and / or interest. (a) amortised cost, the gain or loss is recognised in the
(b) fair value through other comprehensive income Statement of Profit and Loss;
(FVTOCI), where the financial assets are held not only (b) fair value through other comprehensive income, the
for collection of cash flows arising from payments of cumulative fair value adjustments previously taken to
principal and interest but also from the sale of such reserves are reclassified to the Statement of Profit and
assets. Such assets are subsequently measured at fair Loss unless the asset represents an equity investment,
value, with unrealised gains and losses arising from in which case the cumulative fair value adjustments
changes in the fair value being recognised in other previously taken to reserves are reclassified within
comprehensive income. equity.
(c) fair value through profit or loss (FVTPL), where the Income Recognition: Interest income is recognised in the
assets are managed in accordance with an approved Statement of Profit and Loss using the effective interest
investment strategy that triggers purchase and sale method. Dividend income is recognised in the Statement
decisions based on the fair value of such assets. Such of Profit and Loss when the right to receive dividend is
assets are subsequently measured at fair value, with established.

Financial Liabilities Accordingly, government grants:

Borrowings, trade payables and other financial liabilities (a) related to or used for assets, are deducted from the
are initially recognised at fair value and are subsequently carrying amount of the asset.
measured at amortised cost. Any discount or premium on (b) related to incurring specific expenditures are taken to
redemption / settlement is recognised in the Statement of the Statement of Profit and Loss on the same basis and
Profit and Loss as finance cost over the life of the liability in the same periods as the expenditures incurred.
using the effective interest method and adjusted to the
(c) by way of financial assistance on the basis of certain
liability figure disclosed in the Balance Sheet.
qualifying criteria are recognised as they become
Financial liabilities are derecognised when the liability is receivable.
extinguished, that is, when the contractual obligation is In the unlikely event that a grant previously recognised is
discharged, cancelled or on expiry. ultimately not received, it is treated as a change in estimate
Offsetting Financial Instruments and the amount cumulatively recognised is expensed in the
Financial assets and liabilities are offset and the net amount Statement of Profit and Loss.
is included in the Balance Sheet where there is a legally Dividend Distribution
enforceable right to offset the recognised amounts and Dividends paid (including income tax thereon) are
there is an intention to settle on a net basis or realise the recognised in the period in which the interim dividends are
asset and settle the liability simultaneously. approved by the Board of Directors, or in respect of the final
Equity Instruments dividend when approved by shareholders.
Equity instruments are recognised at the value of the Employee Benefits
proceeds, net of direct costs of the capital issue. The Company makes contributions to both defined benefit
Revenue and defined contribution schemes which are mainly
administered through duly constituted and approved Trusts.
Revenue is measured at the transaction price that the
Company receives or expects to receive as consideration Provident Fund contributions are in the nature of defined
for goods supplied and services rendered, net of returns contribution scheme. In respect of employees who
and estimates of variable consideration such as discounts are members of constituted and approved trusts, the
to customers. Revenue from the sale of goods includes Company recognises contribution payable to such trusts
Excise Duties and National Calamity Contingent Duty as an expense including any shortfall in interest between
which are payable on manufacture of goods but excludes the amount of interest realised by the investment and
taxes such as VAT and Goods and Services Tax which are the interest payable to members at the rate declared by
payable in respect of sale of goods and services. the Government of India. In respect of other employees,
provident funds are deposited with the Government and
Revenue from the sale of goods and services is recognised
recognised as expense.
when the Company performs its obligations to its customers
and the amount of revenue can be measured reliably and The Company makes contribution to defined contribution
recovery of the consideration is probable. The timing of such pension plan. The contribution payable is recognised as an
recognition in case of sale of goods is when the control over expense, when an employee renders the related service.
the same is transferred to the customer, which is mainly The Company also makes contribution to defined benefit
upon delivery and in case of services, in the period in which pension and gratuity plan. The cost of providing benefits
such services are rendered. under the defined benefit obligation is calculated by
independent actuary using the projected unit credit method.
Government Grant Service costs and net interest expense or income is
The Company may receive government grants that require reflected in the Statement of Profit and Loss. Gain or Loss
compliance with certain conditions related to the Company’s on account of remeasurements are recognised immediately
operating activities or are provided to the Company by way through other comprehensive income in the period in which
of financial assistance on the basis of certain qualifying they occur.
criteria. The employees of the Company are entitled to compensated
Government grants are recognised when there is reasonable leave for which the Company records the liability based on
assurance that the grant will be received upon the Company actuarial valuation computed using projected unit credit
complying with the conditions attached to the grant. method. These benefits are unfunded.

Actual disbursements made under the Workers’ Voluntary For cash settled SAR units granted to eligible employees, a
Retirement Scheme are accounted as revenue expenses. liability is initially measured at fair value at the grant date and
is subsequently remeasured at each reporting period, until
Employee Share Based Compensation
settled. The fair value of ESAR units granted is recognised
Stock Options in the Statement of Profit and Loss for employees of the
Stock Options are granted to eligible employees under Company. In case of employees on deputation to group
the ITC Employee Stock Option Schemes (“ITC ESOS”), companies, the Company generally seeks reimbursements
as may be decided by the Nomination & Compensation from the concerned group company. The value of such
Committee / Board. Eligible employees for this purpose payments, net of reimbursements, is considered as capital
include employees of the Company including Directors contribution / investment.
and those on deputation and employees of the
Leases
Company’s subsidiary companies including Managing
Director / Wholetime Director of a subsidiary. The Company assesses at contract inception whether a
Under Ind AS, the cost of ITC Stock Options (Stock Options) contract is, or contains, a lease. A contract is, or contains, a
is recognised based on the fair value of Stock Options as lease if it conveys the right to control the use of an identified
on the grant date. asset for a period of time in exchange for consideration.
While the fair value of Stock Options granted is recognised Company as a Lessee
in the Statement of Profit and Loss for employees of the Right-of-Use (ROU) assets are recognised at inception of
Company (other than those out on deputation), the value a contract or arrangement for significant lease components
of Stock Options, net of reimbursements, granted to at cost less lease incentives, if any. ROU assets are
employees on deputation and to employees of the wholly subsequently measured at cost less accumulated
owned and other subsidiary companies is considered as depreciation and impairment losses, if any. The cost of ROU
capital contribution / investment.
assets includes the amount of lease liabilities recognised,
The Company generally seeks reimbursement of the value initial direct cost incurred and lease payments made at
of Stock Options from such companies, as applicable. It or before the lease commencement date. ROU assets
may, if so recommended by the Corporate Management are generally depreciated over the shorter of the lease
Committee and approved by the Audit Committee, decide term and estimated useful lives of the underlying assets
not to seek such reimbursements from: on a straight line basis. Lease term is determined based
(a) Wholly owned subsidiaries who need to conserve on consideration of facts and circumstances that create
financial capacity to sustain their business and growth an economic incentive to exercise an extension option,
plans and to address contingencies that may arise, or not to exercise a termination option. Lease payments
taking into account the economic and market conditions associated with short-term leases and low value leases are
then prevailing and opportunities and threats in the charged to the Statement of Profit and Loss on a straight
competitive context. line basis over the term of the relevant lease.
(b) Other companies not covered under (a) above, who The Company recognises lease liabilities measured at the
need to conserve financial capacity to sustain their present value of lease payments to be made on the date
business and growth plans and where the quantum of of recognition of the lease. Such lease liabilities do not
reimbursement is not material - the materiality threshold
include variable lease payments (that do not depend on
being ` 5 Crores for each entity for a financial year.
an index or a rate), which are recognised as expense in
Cash Settled Stock Appreciation Linked Reward the periods in which they are incurred. Interest on lease
(SAR) Plan liability is recognised using the effective interest method.
Cash Settled SAR units are granted to eligible employees Lease liabilities are subsequently increased to reflect the
under the ITC Employee Cash Settled Stock Appreciation accretion of interest and reduced for the lease payments
Linked Reward Plan (“ITC ESARP”). The eligible employees made. The carrying amount of lease liabilities is also
for this purpose are such present and future permanent remeasured upon modification of lease arrangement or
employees of the Company, including a Director of the upon change in the assessment of the lease term. The
Company, as may be decided by the CMC / Nomination & effect of such remeasurements is adjusted to the value of
Compensation Committee / Board. the ROU assets.

Company as a Lessor Provisions

Leases in which the Company does not transfer substantially Provisions are recognised when, as a result of a past
all the risks and rewards of ownership of an asset are event, the Company has a legal or constructive obligation;
classified as operating leases. Where the Company is a it is probable that an outflow of resources will be required
lessor under an operating lease, the asset is capitalised to settle the obligation; and the amount can be reliably
within property, plant and equipment or investment property estimated. The amount so recognised is a best estimate
and depreciated over its useful economic life. Payments of the consideration required to settle the obligation at the
received under operating leases are recognised in the reporting date, taking into account the risks and uncertainties
Statement of Profit and Loss on a straight line basis over
surrounding the obligation.
the term of the lease.
In an event when the time value of money is material, the
Taxes on Income provision is carried at the present value of the cash flows
Taxes on income comprise current taxes and deferred estimated to settle the obligation.
taxes. Current tax in the Statement of Profit and Loss is
provided as the amount of tax payable in respect of taxable Operating Segments
income for the period using tax rates and tax laws enacted Operating segments are reported in a manner consistent
during the period, together with any adjustment to tax with the internal reporting provided to the chief operating
payable in respect of previous years. decision-maker (CODM). The CODM, who is responsible
Deferred tax is recognised on temporary differences for allocating resources and assessing performance of the
between the carrying amounts of assets and liabilities and operating segments, has been identified as the Corporate
the amounts used for taxation purposes (tax base), at the Management Committee.
tax rates and tax laws enacted or substantively enacted by Segments are organised based on businesses which
the end of the reporting period. have similar economic characteristics as well as exhibit
Deferred tax assets are recognised for the future tax similarities in nature of products and services offered,
consequences to the extent it is probable that future the nature of production processes, the type and class of
taxable profits will be available against which the deductible customer and distribution methods.
temporary differences can be utilised.
Segment revenue arising from third party customers is
Income tax, insofar as it relates to items disclosed under reported on the same basis as revenue in the financial
other comprehensive income or equity, is disclosed statements. Inter-segment revenue is reported on the basis
separately under other comprehensive income or equity,
of transactions which are primarily market led. Segment
as applicable.
results represent profits before finance charges, unallocated
Deferred tax assets and liabilities are offset when there is corporate expenses and taxes.
legally enforceable right to offset current tax assets and
“Unallocated Corporate Expenses” include revenue and
liabilities and when the deferred tax balances relate to the
same taxation authority. Current tax assets and tax liabilities expenses that relate to initiatives / costs attributable to the
are offset where the entity has a legally enforceable right to enterprise as a whole.
offset and intends either to settle on net basis, or to realize Financial and Management Information Systems
the asset and settle the liability simultaneously.
The Company’s Accounting System is designed to unify
Claims the Financial and Cost Records and also to comply with the
Claims against the Company not acknowledged as debts relevant provisions of the Companies Act, 2013, to provide
are disclosed after a careful evaluation of the facts and financial and cost information appropriate to the businesses
legal aspects of the matter involved. and facilitate Internal Control.

2. Use of estimates and judgements
The preparation of financial statements in conformity period and the impact of changes in the estimated
with generally accepted accounting principles requires useful life is considered in the period in which the
management to make estimates and assumptions that estimate is revised.
affect the reported amounts of assets and liabilities and
2. F
air value measurements and valuation
disclosure of contingent liabilities at the date of the financial
processes:
statements and the results of operations during the
reporting period end. Although these estimates are based Some of the Company’s assets and liabilities
upon management’s best knowledge of current events and are measured at fair value for financial reporting
actions, actual results could differ from these estimates. purposes. In estimating the fair value of an asset or a
liability, the Company uses market-observable data
The estimates and underlying assumptions are reviewed on
to the extent it is available. Where Level 1 inputs
an ongoing basis. Revisions to accounting estimates are
are not available, the Company engages third party
recognised in the period in which the estimate is revised
valuers, where required, to perform the valuation.
if the revision affects only that period, or in the period of
Information about the valuation techniques and
the revision and future periods if the revision affects both
inputs used in determining the fair value of various
assets, liabilities and share based payments are
A. Judgements in applying accounting policies disclosed in the notes to the financial statements.
The judgements, apart from those involving estimations 3. Actuarial Valuation:
(see note B below), that the Company has made in the
The determination of Company’s liability towards
process of applying its accounting policies and that have
defined benefit obligation to employees is made
a significant effect on the amounts recognised in these
through independent actuarial valuation including
financial statements pertain to useful life of intangible
determination of amounts to be recognised in
assets. The Company is required to determine whether
its intangible assets have indefinite or finite life which is the Statement of Profit and Loss and in Other
a subject matter of judgement. Certain trademarks have Comprehensive Income. Such valuation depends
been considered of having an indefinite useful life taking upon assumptions determined after taking into
into account that there are no technical, technological or account inflation, seniority, promotion and other
commercial risks of obsolescence or limitations under relevant factors such as supply and demand factors
contract or law. Other trademarks have been amortised in the employment market. Information about
over their useful economic life. Refer notes to the financial such valuation is provided in notes to the financial
statements. statements.
B. Key sources of estimation uncertainty 4. Claims, Provisions and Contingent Liabilities:
The following are the key assumptions concerning the The Company has ongoing litigations with various
future, and other key sources of estimation uncertainty at the regulatory authorities and third parties. Where an
end of the reporting period that may have a significant risk outflow of funds is believed to be probable and a
of causing a material adjustment to the carrying amounts of reliable estimate of the outcome of the dispute can
assets and liabilities within the next financial year. be made based on management’s assessment of
specific circumstances of each dispute and relevant
1. U
seful lives of property, plant and equipment, external advice, management provides for its best
investment property and intangible assets: estimate of the liability. Such accruals are by nature
As described in the significant accounting policies, complex and can take number of years to resolve
the Company reviews the estimated useful lives of and can involve estimation uncertainty. Information
property, plant and equipment, investment property about such litigations is provided in notes to the
and intangible assets at the end of each reporting financial statements.

(` in Crores)
Gross Block
As at Withdrawals As at Withdrawals As at
31st March, and 31st March, and 31st March,
Particulars 2021 Additions adjustments 2022 Additions adjustments # 2023
3A. Property, Plant and Equipment *

Land 1 1995.76 56.23 35.26 2016.73 7.17 5.80 2018.10
Buildings 7740.65 745.03 57.03 8428.65 686.84 10.08 9105.41
Leasehold Improvements 11.90 1.40 0.02 13.28 0.10 0.77 12.61
Plant and Equipment 14693.95 1772.87 210.41 16256.41 1712.10 163.45 17805.06
Furniture and Fixtures 810.02 79.51 4.75 884.78 103.54 7.64 980.68
Vehicles 158.71 15.18 18.28 155.61 23.32 22.67 156.26
Office Equipment 26.56 2.87 0.86 28.57 3.21 1.16 30.62
Railway Sidings 1.73 – – 1.73 – – 1.73
Total 25439.28 2673.09 326.61 27785.76 2536.28 211.57 30110.47
3B. Capital work-in-progress 3329.97 1761.73 2649.36 2442.34 1732.59 2493.46 1681.47
3C. Investment Property 5 410.11 – – 410.11 – (0.52) 410.63
3D. Goodwill 2 577.20 – – 577.20 – – 577.20
3E. Other Intangible assets (acquired) 2
Trademarks 1920.35 – – 1920.35 – – 1920.35
Computer Software 224.05 35.84 22.49 237.40 66.30 3.37 300.33
Know How, Business and Commercial Rights 33.85 9.53 – 43.38 0.51 – 43.89
Customer Relationships 35.21 – – 35.21 – – 35.21
Total 2213.46 45.37 22.49 2236.34 66.81 3.37 2299.78
3F. Other Intangible assets under development 3.50 64.48 44.14 23.84 53.98 62.69 15.13
3G. Right of Use Assets ^
Land 499.74 16.89 – 516.63 – – 516.63
Buildings 289.40 40.52 32.87 297.05 71.39 70.85 297.59
Plant and Equipment 48.63 – – 48.63 – – 48.63
Total 837.77 57.41 32.87 862.31 71.39 70.85 862.85
# Includes amounts transferred from Property, Plant and Equipment to Investment Property.
^ Also refer Note 27(vii)
(` in Crores)
* The above includes following assets given on As at 31st March, 2022 As at 31st March, 2023
Depreciation Depreciation
operating lease:
Charge Charge
Accumulated for the year Accumulated for the year
Particulars Gross Block Depreciation Net Block 2021-22 Gross Block Depreciation Net Block 2022-23
Land 1.48 – 1.48 – 1.48 – 1.48 –

Buildings 4.98 1.40 3.58 0.16 4.11 1.22 2.89 0.08
Plant and Equipment 229.25 144.79 84.46 20.49 247.10 166.96 80.14 17.75
TOTAL 235.71 146.19 89.52 20.65 252.69 168.18 84.51 17.83

(` in Crores)
Depreciation and Amortization Net Book Value
Upto On Withdrawals Upto On Withdrawals Upto As at As at

31st March, For and 31st March, For and 31st March, 31st March, 31st March,
Particulars 2021 the year adjustments 2022 the year adjustments# 2023 2023 2022
3A. Property, Plant and Equipment *

Land 1 – – – – – – – 2018.10 2016.73
Buildings 924.31 220.10 15.17 1129.24 239.88 4.17 1364.95 7740.46 7299.41
Leasehold Improvements 5.99 1.40 0.02 7.37 1.76 0.40 8.73 3.88 5.91
Plant and Equipment 5523.49 1213.29 208.96 6527.82 1210.12 133.07 7604.87 10200.19 9728.59
Furniture and Fixtures 397.74 73.25 3.45 467.54 79.43 6.15 540.82 439.86 417.24
Vehicles 67.54 18.15 11.10 74.59 16.85 14.49 76.95 79.31 81.02
Office Equipment 16.56 3.44 0.86 19.14 4.72 2.07 21.79 8.83 9.43
Railway Sidings 0.78 0.13 – 0.91 0.13 – 1.04 0.69 0.82
Total 6936.41 1529.76 239.56 8226.61 1552.89 160.35 9619.15 20491.32 19559.15
3B. Capital work-in-progress – – – – – – – 1681.47 2442.34
3C. Investment Property 5 33.55 12.36 – 45.91 12.38 (0.08) 58.37 352.26 364.20
3D. Goodwill 2 – – – – – – – 577.20 577.20
3E. Other Intangible assets (acquired) 2
Trademarks 17.30 3.14 – 20.44 3.14 – 23.58 1896.77 1899.91
Computer Software 170.12 31.36 22.44 179.04 21.16 0.41 199.79 100.54 58.36
Know How, Business and Commercial Rights 18.73 3.52 – 22.25 4.95 – 27.20 16.69 21.13
Customer Relationships 2.99 4.40 – 7.39 4.40 – 11.79 23.42 27.82
Total 209.14 42.42 22.44 229.12 33.65 0.41 262.36 2037.42 2007.22
3F. Other Intangible assets under development – – – – – – – 15.13 23.84
Land 13.73 7.67 – 21.40 7.83 – 29.23 487.40 495.23
Buildings 86.15 54.57 29.21 111.51 50.59 66.46 95.64 201.95 185.54
Plant and Equipment 11.05 5.51 – 16.56 5.51 – 22.07 26.56 32.07
Total 110.93 67.75 29.21 149.47 63.93 66.46 146.94 715.91 712.84
Notes:
1. Land includes certain lands at Munger with Gross Block - ` 1.16 Crores (2022 - ` 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.
2. a) Goodwill arising on Business Combination is carried at cost and annually tested for impairment in line with applicable Accounting Standards.
The Company has also considered certain acquired Trademarks aggregating ` 1889.78 Crores (2022 - ` 1889.78 Crores) as having indefinite useful lives. The indefinite useful life for such trademarks
has been assessed considering no technical, technological or commercial risks of obsolescence or any limitations under contract or law. Such assets are also annually tested for impairment.
These assets pertain to the ‘FMCG - Others’ Segment and are related to the Branded Packaged Foods and Personal Care Products businesses of the Company.
Impairment testing for goodwill and intangible assets with indefinite useful lives has been carried out considering their recoverable amounts which, inter-alia, includes estimation of their value-in-use
based on management projections. These projections have been made for a period of five years, or longer, as applicable and consider various factors, such as market scenario, growth trends, growth
and margin projections, and terminal growth rates specific to the business.
For such projections, discount rate of 10% (2022 - 10%) and long-term growth rates ranging between 5% to 6% (2022 - 5% to 6%) have been considered. Discount rate has been determined
considering the Weighted Average Cost of Capital (WACC) of market benchmarks.
Based on the above assessment, no impairment has been recognised during the year.
2. b) Computer software and Customer Relationships are amortized over a period of 5 years and 8 years respectively. Other Intangibles with finite useful life are amortized over a period of 10 years unless
shorter useful life is required based on contractual or legal terms.
3. The amortization expense of intangible assets has been included under ‘Depreciation and amortization expense’ in the Statement of Profit and Loss.
4. The amount of expenditure recognised in the carrying amount of property, plant and equipment in the course of construction is ` 90.50 Crores (2022 - ` 147.39 Crores).
5. The fair value of the investment property is ` 903.04 Crores (2022 - ` 870.11 Crores). The fair value has been determined on the basis of valuation carried out at the reporting date by registered
valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017 and the same has been categorised as Level 2 based on the valuation techniques used and inputs
applied. The main inputs considered by the valuer are government rates, property location, market research & trends, contracted rentals, terminal yields, discount rates and comparable values, as
appropriate.
Amounts recognised in the Statement of Profit and Loss in respect of the investment property is as under:
(` in Crores)
Particulars For the year ended For the year ended
Rental Income etc. from investment property 124.05 111.94
Direct Operating Expenses arising from investment property that
generated rental income during the year$ 11.42 9.94
Direct Operating Expenses arising from investment property that
did not generate rental income during the year – –
$As per the contractual arrangements, the Company is responsible for the maintenance of common area at its own cost. The expenses arising out of such arrangements are not material.

Capital work-in-progress (CWIP) ageing schedule (` in Crores)
As at 31st March, 2022 As at 31st March, 2023
Amount in CWIP for a period of Amount in CWIP for a period of
Less than 1-2 2-3 More than Less than 1-2 2-3 More than
Particulars 1 year years years 3 years Total 1 year years years 3 years Total
Projects in Progress 651.71 685.43 444.17 661.03 2442.34 655.86 345.20 140.10 540.31 1681.47
Projects temporarily suspended – – – – – – – – – –
Total 651.71 685.43 444.17 661.03 2442.34 655.86 345.20 140.10 540.31 1681.47
Completion schedule for Projects in Capital work-in-progress, which are overdue or has exceeded its cost compared to its original plan
(` in Crores)
To be completed in To be completed in
Less than More than Less than More than

Particulars 1 year 1 - 2 years 2 - 3 years 3 years 1 year 1 - 2 years 2 - 3 years 3 years
MXD - KOL – 542.00 – – 633.54 – – –

H - AHM 440.31 – – – – – – –
F - KHO – 164.42 – – – – – –
F - GNT 69.46 – – – – – – –
ME - MED 62.47 – – – – – – –
ME - PUN 20.01 – – – – – – –
Other Intangible assets under development (IAUD) ageing schedule (` in Crores)

Amount in IAUD for a period of Amount in IAUD for a period of
Projects in Progress 23.84 – – – 23.84 15.13 – – – 15.13

Total 23.84 – – – 23.84 15.13 – – – 15.13
Note: There are no projects in Other Intangible assets under development, which are overdue or has exceeded its cost compared to its original plan as at 31st March, 2023 and 31st March, 2022.

Face Value ` As at 31st March, 2023 As at 31st March, 2022
(Fully Paid
unless stated (` in (` in
Number Number
otherwise) Crores) Crores)
4. Non-current investments (Contd.)

INVESTMENT IN EQUITY INSTRUMENTS
In Subsidiaries (at cost unless stated otherwise)

Unquoted
Gold Flake Corporation Limited 10 1,59,98,385 16.00 1,59,98,385 16.00
Russell Credit Limited
Fully paid 10 59,74,54,177 619.29 59,74,54,177 619.29
` 6.50 per share paid 10 7,54,22,400 39.22 7,54,22,400 39.22
ITC Infotech India Limited 10 8,80,00,000 617.01 8,52,00,000 173.10
Landbase India Limited 10 31,70,00,000 325.57 31,70,00,000 325.57
Surya Nepal Private Limited (Ordinary Shares) Nepalese
Rupee
100 1,18,94,400 10.15 1,18,94,400 10.15
Srinivasa Resorts Limited 10 1,63,20,477 18.53 1,63,20,477 18.53
Fortune Park Hotels Limited 10 4,50,008 0.45 4,50,008 0.45
Bay Islands Hotels Limited 100 11,875 0.12 11,875 0.12
WelcomHotels Lanka (Private) Limited No par value 40,08,47,960 1247.99 13,96,42,260 641.85
Wimco Limited 1 18,50,81,193 3.50 18,50,81,193 3.50
Technico Pty Limited (Ordinary Shares)
( ` 16.29 Crores impaired) No par value 1,00,15,502 31.88 1,00,15,502 31.88
Technico Agri Sciences Limited 10 3,79,62,800 121.00 3,79,62,800 121.00
ITC Integrated Business Services Limited (formerly
known as ITC Investments & Holdings Limited) 10 45,00,000 4.50 45,00,000 4.50
ITC IndiVision Limited 10 12,00,00,000 120.00 12,00,00,000 120.00
North East Nutrients Private Limited 10 5,54,80,000 55.48 5,54,80,000 55.48
Pavan Poplar Limited
(cost ` 5.99 Crores, fully impaired) 10 55,10,004 – 55,10,004 –
Prag Agro Farm Limited
(cost ` 12.82 Crores, fully impaired) 1 1,28,00,020 – 1,28,00,020 –
ITC Fibre Innovations Limited 10 10,000 0.01 – –
In Associates (at cost unless stated otherwise)
Quoted
International Travel House Limited 10 2,87,600 0.65 2,87,600 0.65
Gujarat Hotels Limited 10 17,33,907 1.94 17,33,907 1.94
Unquoted
Delectable Technologies Private Limited 10 100 0.10 100 0.10
[Refer Note 27(ix)] 10 100 0.96 – –
Carried over 3234.35 2183.33

(Fully Paid
Number Number

Brought forward 3234.35 2183.33
INVESTMENT IN EQUITY INSTRUMENTS (Contd.)
In Joint Ventures (at cost unless stated otherwise)
Unquoted
Espirit Hotels Private Limited [Refer Note 27(x)] 10 4,65,09,200 46.51 4,65,09,200 46.51
Maharaja Heritage Resorts Limited 100 90,000 0.90 90,000 0.90
Logix Developers Private Limited [Refer Note 27(viii)]
[cost ` 41.95 Crores, fully impaired (2022 - ` 33.45
Crores impaired)] 10 77,66,913 – 77,66,913 8.50
In Others (at fair value through other comprehensive
income unless stated otherwise)
Quoted
VST Industries Limited 10 476 0.15 476 0.15
HLV Limited 2 4,99,53,055 45.71 4,99,53,055 45.71
EIH Limited 2 8,56,21,473 1418.32 8,56,21,473 1324.14
Tourism Finance Corporation of India Limited 10 25,000 0.18 25,000 0.15
Unquoted
Bihar Hotels Limited 2 8,00,000 0.04 8,00,000 0.04
Andhra Pradesh Gas Power Corporation Limited 10 8,04,000 – 8,04,000 2.32
Woodlands Multispeciality Hospital Limited 10 13,605 0.01 13,605 0.01
Mirage Advertising and Marketing Limited 10 12,488 – 12,488 –
(at fair value through profit or loss) [Refer Note 27(ix)] 10 – – 100 0.96
Blupin Technologies Private Limited
(at fair value through profit or loss) 10 400 3.82 – –
INVESTMENT IN PREFERENCE SHARES
In Subsidiaries (at amortised cost unless
stated otherwise)
Unquoted
WelcomHotels Lanka (Private) Limited (at cost)
(Cumulative Non-Convertible Redeemable
Preference Shares) No par value 38,33,73,340 1527.42 38,33,73,340 1527.42
Wimco Limited
Preference Shares) 100 5,00,000 5.00 5,00,000 5.00
Preference Shares) 100 1,60,00,000 160.00 30,00,000 30.00
Carried over 6442.41 5175.14

(Fully Paid
Number Number

INVESTMENT IN PREFERENCE SHARES (Contd.)
In Associates (at cost)
Unquoted
(Compulsorily Convertible Cumulative
Preference Shares) 10 7,759 7.40 5,792 5.52
[Refer Note 27(ix)] (Compulsorily Convertible
Cumulative Preference Shares) 10 2,980 32.50 – –
In Others (at fair value through profit or loss)
Unquoted

Preference Shares) 100 2,980 35.52 – –
[Refer Note 27(ix)] (Compulsorily Convertible
Cumulative Preference Shares) 10 – – 1,980 19.04
INVESTMENT IN GOVERNMENT OR TRUST SECURITIES
(at amortised cost)
Quoted
State Development Loans
7.20% Tamil Nadu - 25-Jan-2027 100 – – 20,85,500 21.81
7.41% Uttar Pradesh - 09-Nov-2026 100 – – 20,00,000 21.08
7.51% Maharashtra - 24-May-2027 100 – – 65,00,000 68.49
7.59% Gujarat - 15-Feb-2027 100 – – 1,25,00,000 132.61
7.62% Uttar Pradesh - 15-Feb-2027 100 – – 30,00,000 31.81
7.84% Maharashtra - 13-Jul-2026 100 – – 2,00,00,000 212.59
7.86% Karnataka - 15-Mar-2027 100 – – 50,00,000 53.24
7.96% Maharashtra - 29-Jun-2026 100 – – 25,00,000 26.73
8.03% Uttar Pradesh - 11-May-2026 100 – – 70,00,000 74.77
8.08% Maharashtra - 15-Jun-2026 100 – – 5,00,000 5.36
8.36% Maharashtra - 27-Jan-2026 100 – – 35,00,000 37.76
8.72% Tamil Nadu - 19-Sep-2026 100 – – 10,00,000 10.99
Government of India Zero Coupon Government Stock
Zero Coupon Government Stock - 22-Feb-2025 100 34,00,000 30.62 34,00,000 28.97
Zero Coupon Government Stock - 15-Jun-2025 100 10,20,000 8.97 10,20,000 8.46
Zero Coupon Government Stock - 22-Aug-2025 100 25,35,000 21.94 25,35,000 20.66
Zero Coupon Government Stock - 15-Dec-2025 100 36,34,800 30.93 36,34,800 29.14
Carried over 6610.29 5984.17

(Fully Paid
Number Number

INVESTMENT IN GOVERNMENT OR TRUST SECURITIES
(Contd.)
Unquoted
Government Securities (cost ` 70000.00) 0.01 0.01
National Savings Certificates (pledged with various
Mandi Samitis) (cost ` 6000.00) … …
INVESTMENT IN BONDS IN THE NATURE OF
DEBENTURES (at amortised cost)
Quoted
Tax Free Bonds - Secured, Redeemable &
Non-Convertible
Housing and Urban Development Corporation Limited
7.07% - Series B - 01-Oct-2025 10,00,000 4,300 433.65 4,300 435.09
7.19% - Series A - 31-Jul-2025 10,00,000 150 15.31 150 15.43
7.39% - Series 2A - 08-Feb-2031 1,000 7,00,696 70.07 7,00,696 70.07
8.20% - Series 2 - 05-Mar-2027 1,000 5,00,000 53.42 5,00,000 54.16
India Infrastructure Finance Company Limited
7.36% - Series II - 22-Jan-2028 1,000 3,00,000 31.69 3,00,000 31.99
8.01% - Series 1A - 12-Nov-2023 1,000 – – 50,000 5.13
8.26% - Series V B - 23-Aug-2028 10,00,000 1,175 122.82 1,175 123.63
8.46% - Series VI B - 30-Aug-2028 10,00,000 1,300 138.65 1,300 139.96
8.48% - Series VII B - 05-Sep-2028 10,00,000 1,780 187.31 1,780 188.71
Indian Railway Finance Corporation Limited
7.07% - Series 102 - 21-Dec-2025 1,000 70,498 7.18 70,498 7.22
7.15% - Series 100 - 21-Aug-2025 10,00,000 250 25.46 250 25.64
7.19% - Series 99 - 31-Jul-2025 10,00,000 2,250 225.38 2,250 225.52
7.34% - Series 86A - 19-Feb-2028 1,000 1,00,000 10.63 1,00,000 10.74
8.23% - Series 91 - 18-Feb-2024 1,000 – – 8,00,000 82.81
8.35% - Series 89 - 21-Nov-2023 10,00,000 – – 100 10.31
8.48% - Series 89A - 21-Nov-2028 10,00,000 1,250 131.09 1,250 131.94
8.55% - Series 94A - 12-Feb-2029 10,00,000 130 13.69 130 13.79
Carried over 8261.54 7701.83

(Fully Paid
Number Number

DEBENTURES (Contd.)
National Bank for Agriculture and Rural
Development
7.07% - Series 1A - 25-Feb-2026 10,00,000 2,000 204.71 2,000 206.19
National Highways Authority of India
7.11% - Series NHAI - II A - 18-Sep-2025 10,00,000 2,600 260.25 2,600 260.33
7.14% - Series I A - 11-Jan-2026 1,000 8,06,381 81.45 8,06,381 81.70
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 17,49,943 182.10 17,49,943 182.78
8.50% - Series II A - 05-Feb-2029 1,000 5,00,000 55.55 5,00,000 56.33
8.75% - Series II B - 05-Feb-2029 1,000 2,50,000 28.25 2,50,000 28.71
National Housing Bank
8.46% - Series V - 30-Aug-2028 10,00,000 800 83.65 800 84.20
Power Finance Corporation Limited
7.16% - Series 136 - 17-Jul-2025 10,00,000 600 61.11 600 61.57
8.46% - Series 107B - 30-Aug-2028 10,00,000 500 52.28 500 52.63
8.54% - Series 2A - 16-Nov-2028 1,000 3,50,000 39.42 3,50,000 40.07
REC Limited
7.17% - Series 5A - 23-Jul-2025 10,00,000 850 86.51 850 87.12
8.46% - Series 3B - 29-Aug-2028 10,00,000 1,190 127.30 1,190 128.55
8.46% - Series 2A - 24-Sep-2028 1,000 3,50,000 39.20 3,50,000 39.84
8.54% - Series 4B - 11-Oct-2028 10,00,000 50 5.25 50 5.28
Taxable Bonds - Secured, Redeemable &
Non-Convertible
7.83% - Series 118 - 21-Mar-2027 10,00,000 – – 1,750 187.83
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
Development
5.70% - Series 22 D - 31-Jul-2025 10,00,000 1,000 99.45 1,000 99.15
7.69% - Series 20 C - 29-May-2024 10,00,000 4,300 441.85 4,300 451.74
5.47% - Series 206 - 19-Aug-2023 10,00,000 – – 100 10.05
6.09% - Series BS-212 A - 27-Aug-2026 10,00,000 – – 300 30.09
Carried over 10359.87 10245.99

(Fully Paid
Number Number

DEBENTURES (Contd.)
6.50% - Series 208 - 17-Sep-2025 10,00,000 – – 1,150 116.68
6.72% - Series 203 A - 09-Jun-2023 10,00,000 – – 900 91.74
6.75% - Series 202 A - 22-May-2023 10,00,000 – – 1,200 122.26
8.03% - Series 147 - 02-May-2026 10,00,000 – – 600 64.04
8.20% - Series 128 - 10-Mar-2025 10,00,000 450 46.75 450 47.59
8.39% - Series 130 C - 19-Apr-2025 10,00,000 200 20.89 200 21.29
REC Limited
5.85% - Series 203 B - 20-Dec-2025 10,00,000 – – 1,100 109.37
Perpetual Bonds - Unsecured, Subordinated &
Non-Convertible#
ICICI Bank
9.15% - Series DMR 18AT
(with first Call option on 20-Jun-2023) 10,00,000 – – 2,647 264.70
9.90% - Series DDE 18AT
(with first Call option on 28-Dec-2023) 10,00,000 – – 3,000 300.00
State Bank of India
7.72% - Series I (with first Call option on 03-Sep-2026) 1,00,00,000 313 313.00 313 313.00
7.72% - Series II (with first Call option on 18-Oct-2026) 1,00,00,000 400 400.00 400 400.00
9.37% - Series II (with first Call option on 21-Dec-2023) 10,00,000 – – 2,350 235.00
9.56% - Series I (with first Call option on 04-Dec-2023) 10,00,000 – – 7,000 700.00
Zero Coupon Bonds - Secured, Redeemable &
Non-Convertible
LIC Housing Finance Limited
Tranche 416 - 25-Apr-2025 10,00,000 10,000 1081.21 10,000 1021.27
INVESTMENT IN DEBT MUTUAL FUNDS
Quoted
Fixed Maturity Plans (at amortised cost)*
Aditya Birla Sun Life Mutual Fund 10 2,19,98,900 23.40 2,19,98,900 22.03
DSP Mutual Fund 10 4,99,97,500 51.36 – –
Nippon India Mutual Fund 10 1,49,99,250 16.06 1,49,99,250 15.08
SBI Mutual Fund 10 23,69,88,151 255.23 23,69,88,151 241.25
Exchange Traded Funds (at fair value through
other comprehensive income) **
Axis Mutual Fund 1 5,50,00,000 59.60 5,50,00,000 58.00
Carried over 13353.49 14778.34

(Fully Paid
Number Number

INVESTMENT IN DEBT MUTUAL FUNDS (Contd.)
Unquoted
Target Maturity Index Funds (at fair value through
Axis Mutual Fund 10 14,37,69,946 148.73 1,98,53,868 20.02
DSP Mutual Fund 10 2,49,40,887 26.04 – –
ICICI Prudential Mutual Fund 10 54,91,10,334 574.27 17,74,37,385 180.27
Kotak Mahindra Mutual Fund 10 42,26,69,978 438.22 2,99,36,233 30.06
Nippon Mutual Fund 10 24,38,33,990 251.24 – –
SBI Mutual Fund 10 54,75,53,778 569.97 19,80,19,704 200.51
INVESTMENT IN ALTERNATIVE INVESTMENT FUNDS
(at fair value through profit or loss)
Unquoted
Chiratae Ventures India Fund IV 1,00,000 1,125 17.33 923 13.98
Fireside Ventures Investments Fund I 1,00,000 1,335 58.06 1,324 51.27
Fireside Ventures Investments Fund II 1,000 1,40,000 17.47 1,00,000 8.67
Fireside Ventures Investments Fund III 1,00,000 300 3.00 – –
India Foundation Fund Series I 100 3,46,463 3.85 1,63,740 2.15
Roots Ventures I 100 9,13,113 19.54 8,13,113 11.26
Aggregate amount of quoted investments 8302.60 10951.37
Aggregate amount of unquoted investments 8060.95 4705.95
Total 16363.55 15657.32
Aggregate market value of quoted investments ` 8340.39 Crores (2022 - ` 11205.72 Crores).
Aggregate amount of impairment in value of investments ` 77.05 Crores (2022 - ` 68.55 Crores).
* Investments in Fixed Maturity Plans (FMPs) that are intended to be held by the Company till maturity are classified as amortised
cost. The underlying instruments in the portfolio of these FMPs have minimal churn and are held to receive contractual cashflows.
** Exchange Traded / Target Maturity Index Funds follow a passive buy and hold investment strategy to receive contractual cashflows
except for meeting redemption and rebalancing requirements. Investment in such funds are classified as FVTOCI as cash flows
from these investments are realised on maturity or upon sale.
# Additional Tier 1 bonds, which are perpetual in nature, are issued by commercial banks under Reserve Bank of India guidelines.
These have been classified as debt instruments by the Company based on the substantive characteristics of the contract.

As at As at
Current Non-Current Current Non-Current
5. Loans
Other Loans - Employees

– Unsecured, considered good 5.95 4.07 5.73 5.06
TOTAL 5.95 4.07 5.73 5.06
6. Other Financial assets
Bank deposits with more than 12 months maturity – 2034.40 – –

Other financial assets
Security Deposits * 25.50 73.27 26.66 71.99
Deposits other than Security Deposits 2.75 1500.56 1510.27 1500.41
Interest accrued on Loans, Deposits, Investments etc. 393.83 – 496.10 –
Other Receivables** 283.76 – 254.94 –
TOTAL 705.84 3608.23 2287.97 1572.40
* Include deposits to Directors and Key Management Personnel ` 0.06 Crore (2022 - ` 0.08 Crore) (Refer Note 29).
** Comprise receivables on account of government grants, claims, rentals, derivatives designated as hedging instrument etc.

As at As at
7. Other Assets
Capital Advances – 168.45 – 187.21

Advances other than capital advances
Security Deposits
– With Statutory Authorities 0.35 789.38 0.28 787.46
– Others 0.79 149.86 0.66 134.22
Other Advances (including advances with statutory
authorities, prepaid expenses, employees etc.) 1197.50 104.05 1048.69 120.03
Other Receivables* 189.45 – 145.52 –
TOTAL 1388.09 1211.74 1195.15 1228.92
* Includes receivables on account of Government grants.
As at As at
8. Inventories*
(At lower of cost and net realisable value)

Raw materials (including packing materials) 6937.54 6442.11
Work-in-progress 263.47 232.70
Finished goods (manufactured) 2063.30 1638.93
Stock-in-trade (goods purchased for resale) 700.11 1150.95
Stores and spares 514.39 453.19
Intermediates - Tissue paper and Paperboards 115.09 79.89
TOTAL 10593.90 9997.77
The above includes goods in transit as under:

TOTAL 236.63 308.44
The cost of inventories recognised as an expense includes ` 20.67 Crores (2022 - ` 17.58 Crores) in respect of write-downs of
inventory to net realisable value. During the year, reversal of previous write-downs of ` 0.81 Crore (2022 - ` 0.91 Crore) have been
made owing to subsequent increase in realisable value.
Inventories of ` 337.08 Crores (2022 - ` 574.71 Crores) are expected to be recovered after more than twelve months. The operating
cycle of the Company is 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.

(Fully Paid
Number Number
9.
Current Investments (at fair value through profit or loss, unless
stated otherwise) (Contd.)

DEBENTURES
Quoted

Non-Convertible
7.18% - Series 86 - 19-Feb-2023 1,000 – – 10,00,000 101.82
8.23% - Series 91 - 18-Feb-2024 1,000 20,00,000 201.79 20,00,000 211.32
8.01% - Series 107 A - 30-Aug-2023 10,00,000 1,000 100.26 1,000 103.98
8.18% - Series 1 A - 16-Nov-2023 1,000 12,95,560 130.24 12,95,560 135.79
REC Limited
7.22% - Series 1 - 19-Dec-2022 1,000 – – 30,00,000 304.51
8.01% - Series 3 A - 29-Aug-2023 10,00,000 1,000 100.25 1,000 103.96

Non-Convertible
9.15% - Series P16 - 05-Sep-2022 10,00,000 – – 300 30.59
INVESTMENT IN CERTIFICATE OF DEPOSITS
Unquoted
Axis Bank Limited - 19-Jul-2023 5,00,000 42,000 2045.45 – –
Export Import Bank of India - 17-Aug-2023 5,00,000 1,000 48.37 – –
HDFC Bank Limited - 17-Jul-2023 5,00,000 9,500 462.88 – –
HDFC Bank Limited - 11-Aug-2023 5,00,000 1,600 77.50 – –
HDFC Bank Limited - 12-Sep-2023 5,00,000 12,000 576.92 – –
ICICI Bank Limited - 19-Jul-2023 5,00,000 5,000 243.51 – –
ICICI Bank Limited - 07-Aug-2023 5,00,000 1,000 48.48 – –
ICICI Bank Limited - 12-Dec-2023 5,00,000 5,000 235.39 – –
Kotak Mahindra Bank Limited - 19-Jul-2023 5,00,000 6,000 292.21 – –
Carried over 5022.91 991.97

(Fully Paid
Number Number
9.
INVESTMENT IN CERTIFICATE OF DEPOSITS (Contd.)
Kotak Mahindra Bank Limited - 17-Aug-2023 5,00,000 500 24.18 – –

Development - 23-Jan-2024 5,00,000 1,500 69.95 – –
Small Industries Development Bank of

India - 07-Jun-2023 5,00,000 2,000 98.38 – –

India - 29-Aug-2023 5,00,000 1,000 48.23 – –

India - 12-Sep-2023 5,00,000 1,000 48.08 – –
Quoted
Exchange Traded Funds
Edelweiss Mutual Fund 1,000 30,00,000 368.71 30,00,000 351.13
Nippon India Mutual Fund 10 58,69,560 65.73 58,69,560 63.61
Unquoted
Liquid / Overnight Funds
Ultra Short Term Funds
SBI Mutual Fund 1,000 2,47,159 127.50 2,47,159 121.04
Low Duration Funds
Aditya Birla Sun Life Mutual Fund 100 87,701 5.36 – –
Axis Mutual Fund 1,000 14,17,525 387.03 14,17,525 367.15
DSP Mutual Fund 10 17,22,63,805 290.89 17,22,63,805 277.37
ICICI Prudential Mutual Fund 100 1,40,07,103 647.96 53,44,324 233.93
Bandhan Mutual Fund

(Formerly IDFC Mutual Fund) 10 7,34,11,386 245.79 7,34,11,386 233.89
SBI Mutual Fund 1,000 19,73,814 604.99 8,30,697 241.68
Carried over 9957.07 4661.14

(Fully Paid
Number Number
9.
Money Market Funds
Aditya Birla Sun Life Mutual Fund 100 40,95,539 129.50 40,95,539 122.42
Axis Mutual Fund 1,000 20,57,053 250.47 – –
Bandhan Mutual Fund
HDFC Mutual Fund 1,000 7,47,666 367.98 2,39,118 111.30
Kotak Mahindra Mutual Fund 1,000 6,53,754 250.28 – –
Nippon India Mutual Fund 1,000 6,60,345 234.26 6,60,345 221.25
SBI Mutual Fund 10 6,33,58,708 238.05 6,33,58,708 225.31
Floating Rate Funds
HDFC Mutual Fund 10 10,07,90,662 427.05 10,07,90,662 404.13
Short Duration Funds
DSP Mutual Fund 10 – – 3,12,12,253 126.54
IDFC Mutual Fund 10 – – 6,58,03,493 322.42
Nippon India Mutual Fund 10 – – 3,86,19,184 175.83
SBI Mutual Fund 10 5,40,50,081 154.07 5,40,50,081 147.17
Banking & PSU Debt Funds
Axis Mutual Fund 1,000 31,86,227 720.37 31,86,227 689.41
Bandhan Mutual Fund
Corporate Bond Funds
Aditya Birla Sun Life Mutual Fund 10 – – 70,15,575 63.27
Quoted
Non-Convertible
Development
6.40% - Series 20K - 31-Jul-2023 10,00,000 2,700 268.84 – –
Carried over 14340.32 8546.37

(Fully Paid
Number Number
9.
Current Portion of Non-current investments

(at amortised cost)
In Subsidiaries
Unquoted
North East Nutrients Private Limited

(Cumulative Non-Convertible Redeemable Preference Shares) 100 – – 18,00,000 18.00
Quoted

Non-Convertible
Housing and Urban Development Corporation
Limited
7.34% - Series 1 - 16-Feb-2023 1,000 – – 3,29,870 33.27
7.19% - Series I - 22-Jan-2023 1,000 – – 5,00,000 50.34
8.01% - Series 1A - 12-Nov-2023 1,000 50,000 5.05 – –
7.18% - Series 86 - 19-Feb-2023 1,000 – – 5,00,000 50.37
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 – –

Non-Convertible
5.20% - Series X 01 - 04-Mar-2025

(with Put and Call option on 04-Mar-2024) 10,00,000 2,000 200.00 – –
Housing and Urban Development
Corporation Limited
6.99% - Series E - 11-Nov-2022 10,00,000 – – 700 70.05
7.61% - Series A - 22-Jun-2022 10,00,000 – – 250 25.02
8.40% - Series C - 11-Apr-2022 10,00,000 – – 850 85.00
Carried over 14636.86 8878.42

(Fully Paid
Number Number
9.
DEBENTURES (Contd.)
Development
4.60% - Series 21 E - 29-Jul-2024
(with Put and Call option on 29-Jul-2022) 10,00,000 – – 5,000 499.95
6.70% - Series 20 H - 11-Nov-2022 10,00,000 – – 250 25.00
6.98% - Series 20 G - 19-Sep-2022 10,00,000 – – 2,000 200.00
7.70% - Series 20 D - 13-Jun-2022 10,00,000 – – 500 50.09
7.85% - Series 20 B - 23-May-2022 10,00,000 – – 900 90.13
7.90% - Series 20 A - 18-Apr-2022 10,00,000 – – 600 60.02
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 – –
7.10% - Series 169 A - 08-Aug-2022 10,00,000 – – 700 70.02
7.35% - Series 191 - 15-Oct-2022 10,00,000 – – 4,500 450.00
8.45% - Series 181 - 11-Aug-2022 10,00,000 – – 250 25.14
REC Limited
7.09% - Series 152 - 17-Oct-2022 10,00,000 – – 300 29.95
7.09% - Series 185 - 13-Dec-2022 10,00,000 – – 2,000 200.00

Non-Convertible
Tranche 378 - 04-May-2022 10,00,000 – – 500 64.78

Non-Convertible#
ICICI Bank Limited
9.15% - Series DMR 18AT (with first Call option on

20-Jun-2023) 10,00,000 2,647 264.70 – –
9.90% - Series DDE 18AT (with first Call option on

28-Dec-2023) 10,00,000 3,000 300.00 – –
Carried over 15422.07 10643.50

(Fully Paid
Number Number
9.

DEBENTURES (Contd.)
State Bank of India
9.37% - Series II (with first Call option on 21-Dec-2023) 10,00,000 2,350 235.00 – –
9.56% - Series I (with first Call option on 04-Dec-2023) 10,00,000 7,000 700.00 – –
Quoted
Fixed Maturity Plans
Aditya Birla Sun Life Mutual Fund 10 – – 11,70,00,000 150.27
HDFC Mutual Fund 10 – – 4,00,00,000 52.17
ICICI Prudential Mutual Fund 10 – – 10,20,00,000 131.07
IDFC Mutual Fund 10 – – 2,20,00,000 27.97
Kotak Mahindra Mutual Fund 10 – – 19,70,00,000 254.79
SBI Mutual Fund 10 – – 19,70,00,000 251.57
Aggregate amount of quoted Investments 3252.57 4467.29
Aggregate amount of unquoted Investments 13104.50 7157.66
Total 16357.07 11624.95
# Additional
Tier 1 bonds, which are perpetual in nature, are issued by commercial banks under Reserve Bank of India guidelines.

As at As at
10. Trade receivables (Current)
Secured, considered good 55.96 55.09

Unsecured, considered good 2265.37 1897.41
Which have significant increase in credit risk – –
Credit impaired 167.87 170.65
Less: Allowance for Credit impairment 167.87 170.65
TOTAL 2321.33 1952.50
Trade receivables ageing schedule (` in Crores)
Outstanding for following periods from due date of payment as at 31st March, 2023
Less than 6 months- More than

Not Due 6 months 1 year 1-2 years 2-3 years 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 20.95 57.56
Disputed Trade Receivables – considered good – – – – – – –
Disputed Trade Receivables – which have
Disputed Trade Receivables – credit impaired – – 0.21 0.55 1.75 107.80 110.31
SUB-TOTAL 1566.84 731.97 25.45 7.92 28.27 128.75 2489.20
Less: Allowance for Credit impairment 167.87
TOTAL 2321.33
(` in Crores)
Outstanding for following periods from due date of payment as at 31st March, 2022

Not Due 6 months 1 year 1-2 years 2-3 years 3 years Total

good 1230.08 705.49 11.16 5.31 0.32 0.14 1952.50
SUB-TOTAL 1230.08 706.82 15.98 33.57 11.40 125.30 2123.15
TOTAL 1952.50

As at As at
11. Cash and cash equivalents@
Balances with Banks

Current accounts 203.19 181.46
Cheques, drafts on hand 1.37 0.89
Cash on hand 2.32 2.62
TOTAL 206.88 184.97
@ Cashand 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.
12. Other bank balances
Earmarked balances 239.30 224.36

In deposit accounts* 3385.08 3468.61
TOTAL 3624.38 3692.97
* Represents deposits with original maturity of more than 3 months having remaining maturity of less than 12 months from the
Balance Sheet date.

As at As at As at As at
31st March, 2023 31st March, 2023 31st March, 2022 31st March, 2022
(No. of Shares) (` in Crores) (No. of Shares) (` 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 12,42,80,17,741 1242.80 12,32,32,55,931 1232.33
A) Reconciliation of number of
Ordinary Shares outstanding
As at beginning of the year 12,32,32,55,931 1232.33 12,30,88,44,231 1230.88
Add: Issue of Shares on exercise
of Options 10,47,61,810 10.48 1,44,11,700 1.44
As at end of the year 12,42,80,17,741 1242.80 12,32,32,55,931 1232.33
B) Shareholders holding more than 5% of the Ordinary Shares in the Company

(No. of Shares) (%) (No. of Shares) (%)
Tobacco Manufacturers (India) Limited 2,97,83,47,320 23.96 2,97,83,47,320 24.17

Life Insurance Corporation of India 1,89,68,61,285 15.26 1,95,02,36,958 15.83
Specified Undertaking of the
Unit Trust of India 97,45,31,427 7.84 97,45,31,427 7.91
C) Shareholding of Promoters: Nil
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
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.
F) Shares reserved for issue under Options

As at As at
(No. of Shares) (No. of Shares)
Ordinary Shares of ` 1.00 each 13,20,94,790 22,76,87,310
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
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 27(xii).

As at As at
14. Borrowings
Unsecured
Deferred payment liabilities
Sales tax deferment loans* 1.26 3.28 0.74 4.54
TOTAL 1.26 3.28 0.74 4.54
*Interest free deferral period of 14 years and repayable by 2025-26.
The repayment schedule is summarised as under:

As at As at
In the first year 1.26 0.74

In the second year 1.52 1.26
In the third to fifth year 1.76 3.28
TOTAL 4.54 5.28
As at As at
15. Lease Liabilities *
Lease Liabilities 46.54 273.59 46.09 259.79
TOTAL 46.54 273.59 46.09 259.79
* Refer Note 27(vii)
Movement of Lease Liabilities during the year

Particulars 31st March, 2023 31st March, 2022
Opening Lease Liabilities 305.88 323.72

New Leases recognised 70.96 40.52
Remeasurements and withdrawals (4.74) (3.94)
Interest expense on Lease Liabilities 25.54 26.96
Payment of Lease Liabilities (including interest) (77.51) (81.38)
Closing Lease Liabilities 320.13 305.88

As at As at
16. Other financial liabilities
Non-current
Others
(Includes payable towards employee benefits, retention money payable
towards property, plant and equipment etc.) 152.49 96.50
TOTAL 152.49 96.50
Current
Interest accrued 1.69 1.71
Unpaid dividend * 239.07 224.13
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.) 1489.62 1277.45
TOTAL 1730.68 1503.59
* 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.
As at As at
17. Provisions
Provision for employee benefits [Refer Note 27(vi)]

Retirement benefits 55.43 139.45 47.11 126.57
Other benefits 8.16 62.38 8.49 60.30
TOTAL 63.59 201.83 55.60 186.87

As at As at
18. Deferred tax liabilities (Net)
Deferred tax liabilities 2074.58 2004.26

Less: Deferred tax assets 453.45 337.12
TOTAL 1621.13 1667.14
(` in Crores)
Recognised Recognised Reclassified
Opening in profit or Recognised directly in to profit or Closing
Movement in deferred tax liabilities / assets balances Balance loss in OCI Equity loss Balance
2022-23
Deferred Tax liabilities / assets in relation to:
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 278.17 (35.16) (8.81) – – 234.20
Total deferred tax liabilities 2004.26 83.11 (43.13) 2.62 27.72 2074.58
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 151.80 46.47 – – – 198.27
Total deferred tax assets 337.12 111.33 5.00 – – 453.45
Deferred tax liabilities (Net) 1667.14 (28.22) (48.13) 2.62 27.72 1621.13
2021-22
Deferred Tax liabilities / assets in relation to:
On fiscal allowances on property, plant and equipment,
investment property etc. 1627.98 14.08 – – – 1642.06
On Excise Duty / National Calamity Contingent Duty on
closing stock 72.25 6.96 – – – 79.21
On cash flow hedges 1.66 – 9.05 2.44 (8.33) 4.82
Other timing differences 312.12 (34.88) 0.93 – – 278.17
Total deferred tax liabilities 2014.01 (13.84) 9.98 2.44 (8.33) 2004.26
On employees’ separation and retirement etc. 59.00 1.09 2.50 – – 62.59
On provision for doubtful debts/advances 50.73 2.38 – – – 53.11
On State and Central taxes etc. 64.36 5.26 – – – 69.62
Other timing differences 112.19 39.61 – – – 151.80
Total deferred tax assets 286.28 48.34 2.50 – – 337.12
Deferred tax liabilities (Net) 1727.73 (62.18) 7.48 2.44 (8.33) 1667.14
As at As at
19. Other liabilities (Current)
Statutory Liabilities 4039.86 3599. 11

Advances received from customers 1275.96 1382.17
Others (includes deferred revenue, accruals, customer deposits etc.) 130.34 116.00
TOTAL 5446.16 5097.28

As at As at
20. Current Tax Liabilities (Net)
Current taxation (net of advance payment) 776.13 551.39
TOTAL 776.13 551.39

21A. Revenue from operations
Sale of Products 66903.80 57817.10

Sale of Services 2577.09 1283.99
Gross Revenue from sale of products and services* [including Excise
Duty / National Calamity Contingent Duty of ` 4054.16 Crores
(2022 - ` 3376.63 Crores)] 69480.89 59101.09
Other Operating Revenues # 770.39 644.47
TOTAL 70251.28 59745.56
* Net of sales returns, damaged stocks and estimates of variable consideration such as discounts to customers.
# Includes Government grants of ` 300.58 Crores (2022 - ` 258.92 Crores) on account of Fiscal and Export Incentives etc.
21B. Gross Revenue from sale of products and services*
FMCG
– Cigarettes etc. 28206.83 23451.39
– Branded Packaged Food Products 15762.46 13195.84
– Others (Education and Stationery Products, Personal Care Products,
Safety Matches, Agarbattis etc.) 3319.02 2768.91
Hotels
– Income from Sale of Services 2573.22 1279.33
Agri Business
– Unmanufactured Tobacco 2677.69 1797.44
– Other Agri Products and Commodities (Wheat, Rice, Spices,
Coffee, Soya etc.) 9637.17 10328.61
Paperboards, Paper and Packaging

– Paperboards and Paper 6570.82 5586.19
– Printed Materials 733.68 693.38
TOTAL 69480.89 59101.09

22. Other income
Interest income 1434.53 1004.59

Dividend income 556.90 857.46
Other non-operating income 157.77 141.19
Other gains and losses 288.41 586.73
TOTAL 2437.61 2589.97
Interest income:
a) Deposits with banks etc. - carried at amortised cost 382.73 177.50
b) Financial assets:
– mandatorily measured at FVTPL 206.61 87.96
– measured at amortised cost 719.79 735.32
– measured at FVTOCI 121.02 3.79
c) Others (from statutory authorities etc.) 4.38 0.02
TOTAL 1434.53 1004.59
Dividend income :
a) Equity instruments measured at FVTOCI held at the end of
reporting period 0.01 0.01
b) Other investments 556.89 857.45
TOTAL 556.90 857.46
Other gains and losses:

Net foreign exchange gain / (loss) 13.74 31.94
Net gain / (loss) arising on financial instruments measured at
amortised cost / mandatorily measured at FVTPL (Refer Note 30)* 283.17 554.79
Impairment of investment in joint venture [Refer Note 27(viii)] (8.50) –
TOTAL 288.41 586.73
* Includes ` 141.37 Crores (2022 - ` 186.06 Crores) being net gain / (loss) on sale of investments.
23. Employee benefits expense
Salaries and wages 2905.05 2634.04

Contribution to Provident and other funds 171.87 169.85
Share based payments to employees [Includes cash-settled share
based payments ` 208.62 Crores (2022 - ` 28.68 Crores)] 267.12 61.19
Staff welfare expenses 280.91 238.37
3624.95 3103.45
Less: Recoveries made / reimbursements received 55.49 41.46
TOTAL 3569.46 3061.99
24. Finance costs
Interest expense:
– On Lease Liabilities 25.45 26.87
– On other financial liabilities measured at amortised cost 4.00 2.18
– Others (to statutory authorities etc.) 12.36 12.90
TOTAL 41.81 41.95

25. Other Expenses
Power and fuel 1199.84 864.05

Consumption of stores and spare parts 446.03 353.48
Contract processing charges 941.72 814.41
Rent 239.68 196.00
Rates and taxes 153.02 114.59
Insurance 132.43 122.39
Repairs
– Buildings 104.80 61.11
– Machinery 325.43 263.29
– Others 81.43 55.05
Maintenance and upkeep 312.93 251.89
Outward freight and handling charges 1648.69 1624.97
Warehousing charges 233.72 200.35
Advertising / Sales promotion 1155.71 980.63
Market research 153.38 161.59
Design and product development 48.08 36.17
Hotel reservation / Marketing expenses 56.76 27.14
Retail accessories 224.54 206.54
Brokerage and discount - sales 17.82 23.55
Commission to selling agents 18.92 18.30
Doubtful and bad debts (0.93) 10.64
Bank and credit card charges 31.77 18.58
Information technology services 311.31 274.48
Travelling and conveyance 266.31 182.18
Training and development 18.55 13.64
Legal expenses 37.07 30.42
Consultancy / Professional fees 175.52 153.08
Postage, telephone etc. 19.48 18.33
Printing and stationery 16.66 11.80
(Gain) / Loss on sale of property, plant and equipment - Net 4.88 (58.77)
Loss on sale of stores and spare parts - Net 1.45 4.71
Miscellaneous expenses 1271.00 1077.36
TOTAL 9649.16 8113.10
Miscellaneous expenses include :
(1) Auditors’ remuneration and expenses*
Audit fees 3.40 3.40
Tax audit fees 0.70 0.70
Fees for limited review 1.40 1.40
Fees for other services # 0.44 0.58
Reimbursement of expenses 0.22 0.01
(2) Cost auditors’ fees 0.11 0.11
* Excluding taxes.
# Auditors’ remuneration excludes remuneration for services amounting to ` 2.44 Crores (2022 - ` 1.88 Crores) rendered by
network firm / entity which is a part of the network of which auditor is a member firm.

26. Income tax expenses
A. Amount recognised in profit or loss

Current tax
Income tax for the year 6019.69 4803.32
Adjustments / (credits) related to previous years - Net 5.63 30.56
Total current tax 6025.32 4833.88
Deferred tax
Deferred tax for the year (22.59) (31.62)
Adjustments / (credits) related to previous years - Net (5.63) (30.56)
Total deferred tax (28.22) (62.18)
TOTAL 5997.10 4771.70
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 5.00 (7.96)
Related to designated portion of hedging instruments in cash flow hedges (5.34) 3.00
(0.34) (4.96)
On items that will be reclassified to profit or loss
Related to designated portion of hedging instruments in cash flow hedges 11.94 (3.72)
Debt instruments through other comprehensive income 8.81 (0.93)
TOTAL 20.41 (9.61)
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 2.62 2.44
TOTAL 2.62 2.44
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 24750.41 19829.53
Income tax expense calculated @ 25.168% (2022 - 25.168%) 6229.18 4990.70
Effect of tax relating to uncertain tax positions 25.29 26.73
Effect of different tax rate on certain items (162.27) (79.46)
Effect of Income not taxable (76.60) (81.95)
Other differences (18.50) (84.32)
Income tax recognised in profit or loss 5997.10 4771.70
The tax rate of 25.168% (22% + surcharge @10% and cess @4%) used for the year 2022-23 and 2021-22 is the corporate tax rate applicable
on taxable profits under the Income-tax Act, 1961.

27. Additional Notes to the Financial Statements
(i) Exceptional items represent proceeds received in partial settlement of the insurance claim towards leaf tobacco stocks, which
were destroyed due to fire at a third party owned warehouse in an earlier year.
(ii) Earnings per share: 2023 2022
Earnings per share has been computed as under:

(a) Profit for the year (` in Crores) 18753.31 15057.83
(b) Weighted average number of Ordinary shares outstanding for
the purpose of basic earnings per share 12,38,15,12,709 12,31,65,71,748
(c) Effect of potential Ordinary shares on Employee Stock Options
outstanding 3,28,14,400 54,47,370
(d) Weighted average number of Ordinary shares in computing
diluted earnings per share [(b) + (c)] 12,41,43,27,109 12,32,20,19,118
(e) Earnings per share on profit for the year
(Face Value ` 1.00 per share)
– Basic [(a) / (b)] 15.15 12.22
– Diluted [(a) / (d)] 15.11 12.22
(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 - ` 364.91 Crores (2022 - ` 354.27 Crores) being 2% of the average Net Profit of the Company.
Expenditure incurred during the year is ` 365.50 Crores (2022 - ` 355.03 Crores) comprising employee benefits expense of
` 14.33 Crores (2022 - ` 15.92 Crores) and other expenses of ` 351.17 Crores (2022 - ` 339.11 Crores), of which ` 62.71 Crores
(2022 - ` 26.01 Crores) is accrued for payment as on 31st March, 2023. The above includes an amount of ` 23.10 Crores
(2022 - ` 3.90 Crores) with regard to ongoing project, which has been deposited in the Unspent CSR Account within 30 days from
the end of the financial year. Amount available for set off in succeeding financial years is ` 1.35 Crores (2022 - ` 0.76 Crore).
Such CSR expenditure of ` 365.50 Crores (2022 - ` 355.03 Crores) excludes ` 9.43 Crores (2022 - ` 5.85 Crores) being the
excess of expenditure of salaries of CSR personnel and administrative expenses over the limit of 5% of total CSR expenditure
laid down under Rule 7(1) of the Companies (Corporate Social Responsibility Policy) Rules, 2014 for such expenses.
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; and providing relief and
(iv) Research and Development expenses for the year amount to ` 161.31 Crores (2022- ` 143.59 Crores).
(v) Contingent liabilities and commitments:
(a) Contingent liabilities
Claims against the Company not acknowledged as debts ` 875.28 Crores (2022 - ` 880.58 Crores), including interest on
claims, where applicable, estimated to be ` 283.62 Crores (2022 - ` 285.07 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 ` 585.19 Crores (2022 - ` 593.95 Crores), including interest on claims, where
applicable, estimated to be ` 261.96 Crores (2022 - ` 267.18 Crores).
Local Authority taxes / cess / royalty on property, utilities, etc. claims disputed by the Company relating to issues of
applicability and determination aggregating ` 239.94 Crores (2022 - ` 236.63 Crores), including interest on claims,
where applicable, estimated to be ` 15.09 Crores (2022 - ` 11.22 Crores).
Third party claims arising from disputes relating to contracts aggregating ` 31.79 Crores (2022 - ` 29.22 Crores),
including interest on claims, where applicable, estimated to be ` 0.17 Crore (2022 - ` 0.10 Crore).
Other matters ` 18.36 Crores (2022 - ` 20.78 Crores), including interest on other matters, where applicable, estimated
to be ` 6.40 Crores (2022 - ` 6.57 Crores).
It is not practicable for the Company to estimate the closure of these issues and the consequential timings of cash flows,
if any, in respect of the above.

27. Additional Notes to the Financial Statements (Contd.)
(b) Commitments

Estimated amount of contracts remaining to be executed on capital accounts and not provided for ` 1403.04 Crores
(2022 - ` 984.51 Crores).

Uncalled liability on investments is ` 60.71 Crores (2022 - ` 54.89 Crores).
(vi) Employee Benefit Plans
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.
(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.
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.


Pension Gratuity Leave Pension Gratuity Leave

Encashment Encashment
Funded Unfunded Funded Unfunded
I Components of Employer Expense
– Recognised in the Statement of
Profit and Loss
1 Current Service Cost 41.32 32.14 12.23 44.87 32.93 10.74
2 Past Service Cost – – – – – –
3 Net Interest Cost (1.59) (1.41) 9.18 1.88 (0.95) 7.88
4 Total expense recognised in the
Statement of Profit and Loss 39.73 30.73 21.41 46.75 31.98 18.62
– Remeasurements recognised in
5 Return on plan assets (excluding amounts
included in Net interest cost) 13.71 1.15 – (7.07) (5.65) –
6 Effect of changes in demographic
assumptions – – – 4.44 (1.83) 0.12
7 Effect of changes in financial assumptions (10.44) (13.10) (2.80) (3.43) (7.77) 0.07
8 Changes in asset ceiling (excluding
interest income) – – – – – –
9 Effect of experience adjustments (1.31) 26.27 8.33 (35.49) 17.99 7.00
10 Total remeasurements included in
Other Comprehensive Income 1.96 14.32 5.53 (41.55) 2.74 7.19
11 Total defined benefit cost
recognised in the Statement of
Profit and Loss and Other
Comprehensive Income (4 + 10) 41.69 45.05 26.94 5.20 34.72 25.81
The current service cost, past service cost and net interest cost for the year, as applicable, pertaining to Pension and
Gratuity expenses have been recognised in “Contribution to Provident and other funds” and Leave Encashment in
“Salaries and wages” under Note 23. The remeasurements of the net defined benefit liability are included in Other
Comprehensive Income.
(` in Crores)
II Actual Returns 44.92 26.71 – 60.36 29.97 –
III Net Asset / (Liability) recognised
in Balance Sheet
1 Present Value of Defined Benefit
Obligation 878.89 439.40 154.53 897.75 416.05 144.48
2 Fair Value of Plan Assets 854.51 423.43 – 882.68 401.92 –
3 Status [Surplus / (Deficit)] (24.38) (15.97) (154.53) (15.07) (14.13) (144.48)
4 Restrictions on Asset Recognised – – – – – –

(` in Crores)
5 Net Asset / (Liability) recognised in
Balance Sheet
Current Non-current Current Non-current

– Pension (24.38) – (15.07) –
– Gratuity (15.97) – (14.13) –
– Leave Encashment (15.08) (139.45) (17.91) (126.57)


IV Change in Defined Benefit
Obligation (DBO)
1 Present Value of DBO at the beginning
of the year 897.75 416.05 144.48 933.22 396.43 133.52
2 Current Service Cost 41.32 32.14 12.23 44.87 32.93 10.74
3 Past Service Cost – – – – – –
4 Interest Cost 57.04 26.45 9.18 55.17 23.37 7.88
5 Remeasurement gains / (losses)
a. Effect of changes in
demographic assumptions – – – 4.44 (1.83) 0.12
b. Effect of changes in financial
assumptions (10.44) (13.10) (2.80) (3.43) (7.77) 0.07
c. Changes in asset ceiling (excluding
interest income) – – – – – –
d. Effect of experience adjustments (1.31) 26.27 8.33 (35.49) 17.99 7.00
6 Curtailment Cost / (Credits) – – – – – –
7 Settlement Cost / (Credits) – – – – – –
8 Liabilities assumed in business
combination – – – – – –
9 Effects of transfer In / (Out) (0.06) – – (0.07) – –
10 Benefits Paid (105.41) (48.41) (16.89) (100.96) (45.07) (14.85)
11 Present Value of DBO at the
end of the year 878.89 439.40 154.53 897.75 416.05 144.48
(` in Crores)
V Best Estimate of Employers’ Expected
Contribution for the next year
– Pension 86.28 70.95

– Gratuity 67.09 58.88



VI Change in Fair Value of Assets
1 Plan Assets at the beginning

of the year 882.68 401.92 – 822.53 376.20 –
2 Asset acquired in Business

Combination – – – – – –
3 Interest Income 58.63 27.86 – 53.29 24.32 –
4 Remeasurement Gains / (Losses)
on plan assets (13.71) (1.15) – 7.07 5.65 –
5 Actual Company Contributions 32.38 43.21 – 100.82 40.82 –
6 Benefits Paid (105.41) (48.41) – (100.96) (45.07) –
7 Effects of transfer In / (Out) (0.06) – – (0.07) – –
8 Plan Assets at the end of the year 854.51 423.43 – 882.68 401.92 –
VII Actuarial Assumptions As at 31st March, 2023 As at 31st March, 2022
Discount Rate (%) Discount Rate (%)
1 Pension 7.50 6.75
2 Gratuity 7.50 6.75
3 Leave Encashment 7.50 6.75
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.
VIII Major Category of Plan Assets as a %

of the Total Plan Assets
1 Government Securities / Special
Deposit with RBI 16.12% 17.96%
2 High Quality Corporate Bonds 11.06% 11.15%
3 Insurer Managed Funds* 63.00% 62.34%
4 Mutual Funds 5.09% 4.39%
5 Cash and Cash Equivalents 4.73% 4.16%
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.

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.


X Net Asset / (Liability) recognised
in Balance Sheet (including experience
adjustment impact)
1 Present Value of Defined
Benefit Obligation 878.89 439.40 154.53 897.75 416.05 144.48
2 Fair Value of Plan Assets 854.51 423.43 – 882.68 401.92 –
3 Status [Surplus / (Deficit)] (24.38) (15.97) (154.53) (15.07) (14.13) (144.48)
4 Experience Adjustment of
Plan Assets [Gain / (Loss)] (13.71) (1.15) – 7.07 5.65 –
5 Experience Adjustment of
obligation [(Gain) / Loss ] (1.31) 26.27 8.33 (35.49) 17.99 7.00
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. While each of these sensitivities holds all
other assumptions constant, in practice such assumptions rarely change in isolation and the asset value changes may
partially offset this impact. For presenting the sensitivities, the present value of the Defined Benefit Obligation has been
calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in
calculating the Defined Benefit Obligation presented above. There was no change in the methods and assumptions used
in the preparation of the Sensitivity Analysis from previous year.
(` in Crores)
DBO as at 31st March, 2023 DBO as at 31st March, 2022
1 Discount Rate + 100 basis points 1392.74 1375.72

2 Discount Rate - 100 basis points 1563.32 1552.14
3 Salary Increase Rate + 1% 1557.24 1543.65
4 Salary Increase Rate – 1% 1395.05 1377.35
(` in Crores)
Maturity Analysis of the Benefit Payments As at 31st March, 2023 As at 31st March, 2022
1 Year 1 216.14 236.75

2 Year 2 214.54 155.17
3 Year 3 197.58 176.96
4 Year 4 182.67 180.08
5 Year 5 115.26 154.62
6 Next 5 Years 499.51 437.59

(b) Amounts towards Defined Contribution Plans have been recognised under “Contribution to Provident and other funds” in
Note 23: ` 101.41 Crores (2022 - ` 91.12 Crores).
(vii) Leases:
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 parties 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.
The amount of ROU Assets and Lease Liabilities recognised in the Balance Sheet are disclosed in Note 3G and Note 15
respectively. The total cash outflow for leases for the year is ` 412.57 Crores (2022 - ` 359.73 Crores) [including payments
of ` 329.16 Crores (2022 - ` 275.66 Crores) in respect of short-term / low-value leases and variable lease payments of
` 5.90 Crores (2022 - ` 2.69 Crores)].
The sensitivity of variable lease payments and effect of extension / termination options not included in measurement of
lease liabilities is not material.
The undiscounted maturities of lease liabilities over the remaining lease term is as follows:
(` in Crores)
Term As at 31st March, 2023 As at 31st March, 2022
Not later than three years 172.10 166.77

Later than three years and not later than ten years 167.52 158.02
Later than ten years and not later than twenty-five years 216.82 212.58
Later than twenty-five years and not later than fifty years 205.12 210.91
Later than fifty years 192.86 198.24
As a Lessor
The Company has leased out its investment properties etc. under operating lease for periods ranging upto 30 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 22. The Company does not have any
risk relating to recovery of residual value of investment property at the end of leases considering the business requirements and
other alternatives.

The undiscounted minimum lease payments to be received over the remaining non-cancellable term on an annual basis are
as follows:
(` in Crores)
1st year 1.43 17.18

2nd year 0.89 1.10
3rd year 0.75 0.56
4th year 0.61 0.58
5th year 0.64 0.61
Beyond 5 years 26.31 26.95
(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, 2023 are yet to be approved by its Board of Directors.
(ix) The Company on 27th October, 2022 acquired, in the third tranche, 1000 Compulsorily Convertible Preference Shares of ` 10 / -
each of Mother Sparsh Baby Care Private Limited (Mother Sparsh), consequent to which the Company’s shareholding in Mother
Sparsh aggregated 22.00% of its share capital on a fully diluted basis. Accordingly, Mother Sparsh became an associate of the
Company with effect from the aforesaid date and the investment is being carried at cost.
(x) The Company on 7th April, 2023 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 with effect from the said date.
(xi) The Ministry of Corporate Affairs (MCA) has issued the Companies (Indian Accounting Standards) (Amendment) Rules, 2023
on 31st March, 2023 amending:
Ind AS 1, ‘Presentation of Financial Statements’ - This amendment requires companies to disclose their material accounting
policies rather than their significant accounting policies.

Ind AS 8 ‘Accounting Policies, Changes in Accounting Estimates and Errors’ - This amendment has introduced a definition
of ‘accounting estimates’ and includes guidance to help distinguish changes in accounting policies from changes in
accounting estimates.
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 same are applicable for financial statements pertaining to annual periods beginning on or after 1st April, 2023. Based
on a preliminary evaluation, the Company does not expect any material impact on the financial statements resulting from the
implementation of these amendments.
(xii) Information in respect of Options granted under the Company’s Employee Stock Option Schemes (‘Schemes’):
Sl. ITC Employee Stock Option ITC Employee Stock Option

No. Scheme - 2006 Scheme - 2010
1. Date of Shareholders’ : 22-01-2007 23-07-2010
approval
2. Total number of Options : Options equivalent to 37,89,18,503 Options equivalent to 55,60,44,823
approved under the Schemes Ordinary Shares of ` 1.00 each Ordinary Shares of ` 1.00 each
(Adjusted for Bonus Shares issued
in terms of Shareholders’ approval)
3. Vesting Schedule : The vesting period for conversion of Options is as follows:
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 the 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 : Five years - the exercise period commences from the date of vesting of the Options
granted 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


8. Method used for accounting of : The employee compensation cost has been calculated using the fair value method of
share-based payment plans 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 2022-23
is ` 58.50 Crores (2022 - ` 32.51 Crores); for the group entities, such compensation cost
is ` 2.61 Crores (2022 - ` 1.00 Crore).
9. Nature and extent of employee : In addition to the terms and conditions provided in the table under Serial Nos. (3) to (5)
share based payment plans hereinbefore, each Option entitles the holder thereof to apply for and be allotted
that existed during the period ten Ordinary Shares of the Company of ` 1.00 each upon payment of the exercise price
including the general terms during the exercise period.
and conditions of each plan
10. Weighted average exercise : Weighted average exercise price per Option : ` 3460.70
prices and weighted average Weighted average fair value per Option : ` 853.67
fair values of Options whose
exercise price either equals
or exceeds or is less than the
market price of the stock
11. Option movements during : ITC Employee Stock Option ITC Employee Stock Option
the year Scheme - 2006 Scheme - 2010
a) Options outstanding at the : 3,79,976 2,23,88,755

beginning of the year
b) Options granted during : 9,800 13,66,500

the year
c) Options cancelled and : 3,800 4,55,571

lapsed during the year
d) Options vested and : 33,990 6,65,415

exercisable during the year
(net of Options lapsed and
exercised)
e) Options exercised during : 1,00,168 1,03,76,013

the year
f) Number of Ordinary : 10,01,680 10,37,60,130

Shares of ` 1.00 each
arising as a result of
exercise of Options during
the year
g) Options outstanding at the : 2,85,808 1,29,23,671

end of the year (a+b-c-e)
h) Options exercisable at the : 1,95,798 1,05,09,326

end of the year
i) Money realised by exercise : 23.22 2,454.18

of the Options during the
year (` in Crores)

12. Summary of the status of

Options:
Particulars As at 31st March, 2023 As at 31st March, 2022
No. of Options Weighted Average No. of Options Weighted Average

Exercise Prices (`) Exercise Prices (`)
Outstanding at the beginning : 2,27,68,731 2469.30 2,91,81,292 2402.40

of the year
Add: Granted during the year : 13,76,300 3460.70 12,21,600 2333.96
Less: Lapsed during the year : 4,59,371 2477.37 61,92,991 2230.80
Less: Exercised during the year : 1,04,76,181 2364.79 14,41,170 2024.88
Outstanding at the end : 1,32,09,479 2655.20 2,27,68,731 2469.30

of the year
Options exercisable at the end : 1,07,05,124 2603.17 2,08,53,766 2495.72

of the year
13. Weighted average share : The weighted average share price of Shares, arising upon exercise of Options during the
price of Shares arising upon year ended 31st March, 2023 was ` 315.92 (2022 - ` 212.94). This was based on the
exercise of Options 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).
14. Summary of Options outstanding, scheme-wise:
No. of Range of Weighted No. of Range of Weighted

Options Exercise average Options Exercise average
Outstanding Prices (`) remaining Outstanding Prices (`) remaining
contractual life contractual life
ITC Employee Stock Option : 2,85,808 1698.00 – 3463.50 3.44 3,79,976 1698.00 – 2885.50 3.61
Scheme - 2006
ITC Employee Stock Option : 1,29,23,671 1698.00 – 3463.50 2.50 2,23,88,755 1698.00 – 2885.50 1.93
Scheme - 2010
15. A description of the method : The fair value of each Option is estimated using the Black Scholes Option Pricing model.
used during the year to estimate
Weighted average exercise price per Option : ` 3
460.70
the fair values of Options, the
weighted average exercise Weighted average fair value per Option : ` 853.67
prices and weighted average
fair values of Options granted
The significant assumptions : The fair value of each Option is estimated using the Black Scholes Option Pricing model
used to ascertain the above after applying the following key assumptions on a weighted average basis:
(i) Risk-free interest rate 7.31%
(ii) Expected life 4.61 years
(iii) Expected volatility 25.08%
(iv) Expected dividends 3.32%
(v) The price of the underlying shares in market at the time of Option grant ` 3460.70
(One Option = 10 Ordinary Shares)

16. Methodology for determination : The volatility used in the Black Scholes Option Pricing model is the annualised standard
of expected volatility 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.
17. Options granted to : As provided below:-
(a) Directors and Name Designation No. of Options granted
Senior managerial personnel during the financial year
2022-23
1 S. Puri Chairman & Managing Director 1,34,500
2 N. Anand Executive Director 67,250
3 S. Dutta Executive Director & 18,750
Chief Financial Officer
4 B. Sumant Executive Director 67,250
5 S. Kaul Group Head - ITD, MAB, Start-Up 13,050
Ventures, LS & T & Quality
6 H. Malik Divisional Chief Executive - 18,750
Foods Business Division
7 A. K. Rajput President - Corporate Affairs 18,750
8 S. Sivakumar Group Head - Agri Business, IT, EHS, 18,750
Sustainability & CSR
9 R. K. Singhi Executive Vice President & 11,050
Company Secretary
The aforesaid Options were granted at the exercise price of ` 3463.50 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.
(b) Any other employee who received a grant on any : None
one year of Options amounting to 5% or more of the
Options granted during the year.
(c) Identified employees who were granted Options, : None
during any one year, equal to or exceeding 1% of the
issued capital (excluding outstanding warrants and
conversions) of the Company at the time of grant.
(xiii) Information in respect of Stock Appreciation Linked Reward Plan:
Sl.
Particulars Details
No.
1 Nature and extent of Stock : ITC Employee Cash Settled Stock Appreciation Linked Reward Plan (ITC ESAR
Appreciation Linked Reward Plan Plan).
that existed during the year along Under the ITC ESAR Plan, the eligible employees receive cash on vesting of SAR
with general terms and conditions 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 : Over a period of five years from the date of grant in accordance with the Plan.
of SAR granted

Sl.
Particulars Details
No.
4 Method used to estimate the fair : Black Scholes Option Pricing model. The said model considers inputs such as
value of SAR granted Risk-free interest rate, Expected life, Expected volatility, Expected dividend,
Market price etc. The number of SAR units outstanding as at 31st March, 2023 is
25,00,251 (2022 - 39,46,719) and the weighted average fair value at measurement
date is ` 712.18 (2022 - ` 217.98) per SAR unit.
5 Total cost recognised in the profit or : The cost has been calculated using the fair value method of accounting for
loss SAR units issued under the ITC ESAR Plan. The employee benefits expense
as per fair value method for the financial year 2022-23 is ` 208.62 Crores
(2022 - ` 28.68 Crores) and ` 7.51 Crores (2022 - ` 1.33 Crores) for group entities
(Refer Note 23). The amount carried in the Balance Sheet as a non – current financial
liability is ` 69.38 Crores (2022 - ` 47.34 Crores) and as a current financial liability is
` 118.80 Crores (2022 - ` 18.47 Crores) (Refer Note 16).
(xiv) Trade Payables ageing schedule: (` in Crores)
Outstanding for following periods from due date of

payment as at 31st March, 2023
Less than More than
Not Due 1–2 years 2–3 years Total
1 year 3 years
MSME 44.01 – – – – 44.01
Others 582.85 20.12 – – – 602.97
Disputed Dues – MSME – – – – – –
Disputed Dues – Others – – – – 0.28 0.28
SUB-TOTAL 626.86 20.12 – – 0.28 647.26
Accrued Payables (not due)
– MSME 93.49
– Others 3610.51
TOTAL 4351.26
(` in Crores)

Less than More than
Not Due 1-2 years 2-3 years Total
1 year 3 years
MSME 32.80 – – – – 32.80
Others 818.93 69.68 0.02 0.01 – 888.64
Disputed Dues – MSME – – – – – –
Disputed Dues – Others – – – – 0.50 0.50
SUB-TOTAL 851.73 69.68 0.02 0.01 0.50 921.94
– MSME 68.16
– Others 3233.30
TOTAL 4223.40

(xv) 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, 2023. This information as required to be disclosed under the Micro, Small and
Medium Enterprises Development Act, 2006 (MSMED Act, 2006) has been determined to the extent such parties have been
identified on the basis of information available with the Company.
(` Crores)
(a) Principal amount remaining unpaid to any supplier as at the end of the
accounting year
– On account of trade payables 137.50 100.96
– On account of liabilities other than trade payables 33.70 29.03
– Total 171.20 129.99
(b) Interest due thereon remaining unpaid to any supplier as at the end of the – –
accounting year
(c) Amount of interest paid under MSMED Act, 2006 along with the amounts of the – –
payment made to the supplier beyond the appointed day during the accounting year
(d) Amount of interest due and payable for the period of delay in making payment – –
(which has been paid but beyond the appointed day during the year) but
without adding the interest specified under the MSMED Act, 2006)
(e) Amount of interest accrued and remaining unpaid at the end of accounting year – –
(f) Amount of further interest remaining due and payable even in the succeeding – –
year, until such date when the interest dues as above are actually paid to the
small enterprise
(xvi) Financial Ratios:

Ratio Numerator Denominator 31st March, 2023 31st March, 2022
Current Ratio (in times) Current Assets Current Liabilities 2.84 2.70
Return on Equity Ratio Profit for the year (before Average
28.99 25.01
(in %) exceptional items) Shareholder’s Equity
Inventory Turnover Ratio Gross Revenue from sale Average Inventory
6.75 6.07
(in times) of products and services
Trade Receivables Gross Revenue from sale Average
32.51 29.24
Turnover Ratio (in times) of products and services Trade Receivables
Trade Payables Turnover COGS + Other Average
Ratio (in times) Expenses – Non Cash Trade Payables 8.99 8.24
Expenditure
Net Capital Turnover Gross Revenue from sale Working Capital (Current
3.05 3.04
Ratio (in times) of products and services Assets – Current Liabilities)
Net Profit Ratio (in %) Profit for the year (before Gross Revenue from sale
26.91 25.48
exceptional items) of products and services
Return on Capital Profit before exceptional Average
38.72 33.33
Employed (in %) items, interest and taxes Capital Employed
Return on Income from investment Time weighted average
6.79 7.61
Investment (in %) Investment
Debt-Equity Ratio and Debt Service Coverage Ratio are not relevant for the Company as it has negligible debt.
(xvii) Figures presented as “…” are below the rounding off norm adopted by the Company.
(xviii) Figures for the previous year are re-arranged, wherever necessary, to conform to the figures of the current period.
(xix) The financial statements were approved for issue by the Board of Directors on 18th May, 2023.

28. Segment Reporting
(` in Crores)
2023 2022
External Inter Segment Total External Inter Segment Total
1. Segment Revenue - Gross
FMCG - Cigarettes 28206.83 – 28206.83 23451.39 – 23451.39
FMCG - Others 19081.48 41.02 19122.50 15964.75 29.74 15994.49
FMCG - Total 47288.31 41.02 47329.33 39416.14 29.74 39445.88
Hotels 2573.22 11.81 2585.03 1279.33 5.67 1285.00
Agri Business 12314.86 5857.48 18172.34 12126.05 4070.02 16196.07
Paperboards, Paper and Packaging 7304.50 1776.85 9081.35 6279.57 1362.05 7641.62
Segment Total 69480.89 7687.16 77168.05 59101.09 5467.48 64568.57
Eliminations (7687.16) (5467.48)
Gross Revenue from sale of products and services 69480.89 59101.09
2. Segment Results
FMCG - Cigarettes 17927.06 14869.07
FMCG - Others 1374.18 923.22
FMCG - Total 19301.24 15792.29
Hotels 541.90 (183.09)
Agri Business 1327.74 1031.15
Paperboards, Paper and Packaging 2293.99 1700.00
Segment Total 23464.87 18340.35
Eliminations 22.19 14.01
Total 23487.06 18354.36
Unallocated corporate expenses net of unallocated income 1167.72 874.28
Profit before interest etc. and taxation 22319.34 17480.08
Finance Costs 41.81 41.95
Interest earned on loans and deposits, income from current and
non-current investments, profit and loss on sale of investments etc. - Net 2400.01 2391.40
Exceptional items [Refer Note 27(i)] 72.87 –
Tax expense 5997.10 4771.70
Profit for the year 18753.31 15057.83
3. Other Information 2023 2022

Segment Segment Segment Segment
Assets Liabilities Assets Liabilities
FMCG - Cigarettes 7290.67 5056.90 6654.58 4684.28
FMCG - Others 11966.57 2351.99 11444.16 2273.87
FMCG - Total 19257.24 7408.89 18098.74 6958.15
Hotels 6514.91 940.88 6538.40 835.94
Agri Business 4114.31 1649.76 4699.08 1746.29
Paperboards, Paper and Packaging 9201.17 1315.17 8486.49 1326.06
Segment Total 39087.63 11314.70 37822.71 10866.44
Unallocated Corporate Assets / Liabilities 43174.11 3353.24 37269.79 2826.49
Total 82261.74 14667.94 75092.50 13692.93

28. Segment Reporting (Contd.)

(` in Crores)
2023 2022
Capital Depreciation Capital Depreciation
expenditure and amortization expenditure and amortization
FMCG - Cigarettes 173.60 268.60 137.25 263.19
FMCG - Others 418.79 579.79 336.27 525.75
FMCG - Total 592.39 848.39 473.52 788.94
Hotels 195.28 289.72 257.90 261.12
Agri Business 119.86 66.48 113.36 80.63
Segment Total 1652.01 1552.58 1741.50 1541.66
Unallocated 181.90 110.15 126.94 110.49
Total 1833.91 1662.73 1868.44 1652.15
Non Cash expenditure Non Cash expenditure
other than depreciation other than depreciation
FMCG - Others 5.42 6.66
FMCG - Total 5.76 12.91
Hotels 7.31 –
Segment Total 21.36 43.70
GEOGRAPHICAL INFORMATION
2023 2022
1. Revenue from external customers
– Within India 59074.73 49782.80
– Outside India 10406.16 9318.29
Total 69480.89 59101.09
2. Non-current assets
– Within India 27082.45 26915.71
– Outside India … …
Total 27082.45 26915.71
NOTES:
(1) The Company’s corporate strategy aims at creating multiple drivers of growth anchored on its core competencies. The Company is currently focused on
four business groups : FMCG, Hotels, Paperboards, Paper and Packaging and Agri Business. The Company’s organisational structure and governance
processes are designed to support effective management of multiple businesses while retaining focus on each one of them.
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 do 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.

29. Related Party Disclosures
1. ENTERPRISES WHERE CONTROL EXISTS:

Subsidiaries:
a) Srinivasa Resorts Limited
b) Fortune Park Hotels Limited
c) Bay Islands Hotels Limited
d) WelcomHotels Lanka (Private) Limited, Sri Lanka
e) Landbase India Limited
f) Russell Credit Limited and its subsidiary
Greenacre Holdings Limited
g) Technico Pty Limited, Australia and its subsidiaries
Technico Technologies Inc., Canada
Technico Asia Holdings Pty Limited, Australia and its subsidiary
Technico Horticultural (Kunming) Co. Limited, China
h) Technico Agri Sciences Limited
i) Wimco Limited
j) Pavan Poplar Limited
k) Prag Agro Farm Limited
l) 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 (w.e.f. 10.10.2022)
ITC Infotech Malaysia SDN. BHD. (w.e.f. 03.02.2023)
ITC Infotech France SAS (w.e.f. 08.02.2023)
ITC Infotech GmbH, Germany (w.e.f. 10.03.2023)
m) Gold Flake Corporation Limited
n) ITC Integrated Business Services Limited
(formerly known as ITC Investments & Holdings Limited) and its subsidiary
o) Surya Nepal Private Limited
p) North East Nutrients Private Limited
q) ITC IndiVision Limited
r) ITC Fibre Innovations Limited (w.e.f. 03.03.2023)
2. OTHER RELATED PARTIES WITH WHOM THE COMPANY HAD TRANSACTIONS

i) Associates & Joint Ventures:
Associates
a) Gujarat Hotels Limited
b) International Travel House Limited
c) Delectable Technologies Private Limited
– being associates of the Company, and
d) 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.)
Associates of the Company’s subsidiaries
ATC Limited
– being associate of Gold Flake Corporation Limited
Joint Ventures
Maharaja Heritage Resorts Limited
Joint Venture of the Company’s subsidiary
ITC Essentra Limited
– being joint venture of Gold Flake Corporation Limited

29. Related Party Disclosures (Contd.)
ii) a) Key Management Personnel (KMP):

S. Puri Chairman & Managing Director
N. Anand Executive Director
S. Dutta Executive Director (w.e.f. 22.07.2022) and Chief Financial Officer
B. Sumant Executive Director
S. Banerjee# Non-Executive Director
H. Bhargava# Non-Executive Director
P. R. Chittaranjan Non-Executive Director (w.e.f. 03.02.2023)
A. Duggal# Non-Executive Director
M. Gupta Non-Executive Director
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
D. R. Simpson Non-Executive Director
N. Doda Non-Executive Director (up to 19.01.2023)
R. Tandon Executive Director (up to 21.07.2022)
# Independent Directors
Company Secretary
R. K. Singhi
Members - Corporate Management Committee
S. Puri
N. Anand
S. Dutta
B. Sumant
S. Kaul (w.e.f. 01.05.2022)
H. Malik
A. Rajput
S. Sivakumar
R. Tandon (upto 21.07.2022)
S. Rangrass (upto 03.06.2022)
S. K. Singh (upto 26.05.2022)
b) Relatives of KMP:
T. Anand (wife of N. Anand)
N. Singhi (wife of R. K. Singhi)
Y. Singhi (son of R. K. Singhi)
R. Tandon (wife of R. Tandon) (upto 21.07.2022)
c) Entities in which relative of KMP is interested:
Décor & Design
iii) Employee Trusts:
a) IATC Provident Fund
b) ITC Defined Contribution Pension Fund
c) ITC Management Staff Gratuity Fund
d) ITC Employees Gratuity Fund
e) ITC Gratuity Fund ‘C’
f) ITC Pension Fund
g) ILTD Seasonal Employees Pension Fund
h) ITC Platinum Jubilee Pension Fund
i) ITC Bhadrachalam Paperboards Limited Management Staff Pension Fund
j) ITC Bhadrachalam Paperboards Limited Gratuity Fund ‘A’
k) ITC Bhadrachalam Paperboards Limited Gratuity Fund ‘C’
l) ITC Hotels Limited Employees Superannuation Scheme
m) Sunrise Spices Limited Employees Gratuity Fund

3. DISCLOSURE OF TRANSACTIONS BETWEEN THE COMPANY AND RELATED PARTIES AND THE STATUS OF OUTSTANDING BALANCES AS AT 31.03.2023 (` in Crores)
Enterprises where
Key Management Relatives of Employee
RELATED PARTY TRANSACTIONS SUMMARY control exists Associates Joint Ventures Total
Personnel (KMP) KMP^ Trusts
Subsidiaries
2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022
1. Sale of Goods / Services 356.99 322.83 1849.19 1080.07 93.84 54.19 2300.02 1457.09
2. Purchase of Goods / Services 429.41 394.12 116.79 66.18 438.27 280.30 0.05 – 984.52 740.60
3. Acquisition cost of Property, Plant and Equipment 15.64 10.58 15.64 10.58
4. Sale of Property, Plant and Equipment 0.44 – 0.44 –
5. Investment in Subsidiaries / Associate 1184.14 427.24 1.88 1.87 1186.02 429.11
6. Redemption of Preference Shares 18.00 – 18.00 –
7. Value of Share Based Payment
7A. Capital Contribution for Share Based Payments (4.09) (22.06) (4.09) (22.06)
7B. Reimbursement for Share Based Payments 7.40 1.66 1.83 0.41 0.37 0.08 9.60 2.15
8. Rent Received 24.73 25.60 0.72 0.72 25.45 26.32
9. Rent Paid* 11.58 9.89 4.32 2.51 1.02 1.05 0.32 0.32 17.24 13.77
10. Remuneration of Managers on Deputation reimbursed 2.45 2.41 7.06 5.36 9.51 7.77
11. Remuneration of Managers on Deputation recovered 40.68 36.32 7.95 6.83 1.76 1.43 50.39 44.58
12. Contribution to Employees’ Benefit Plans 115.04 178.43 115.04 178.43
13. Dividend Income 556.54 857.14 0.35 0.31 556.89 857.45
14. Dividend Payments 4434.03 3981.58 6.25 5.70 4440.28 3987.28
15. Interest Income 10.36 2.42 10.36 2.42
16. Expenses Recovered 13.88 10.01 29.10 21.59 0.30 0.11 43.28 31.71
17. Expenses Reimbursed 3.18 2.81 0.25 0.26 0.02 0.05 3.45 3.12
18. Advances Given during the year 0.03 0.45 0.03 0.45
19. Adjustment / Receipt towards Refund of Advances 0.03 0.45 0.03 0.45
20. Advances Received during the year 0.12 85.32 1813.30 1496.60 1813.42 1581.92
21. Adjustment / Payment towards Refund of Advances 120.99 152.01 1786.29 972.02 1907.28 1124.03
22. Deposits Given during the year – … – …
23. Adjustment / Receipt towards Refund of Deposit 0.02 – 0.02 –
24. Remuneration to KMP1
24A. – Short term benefits 46.76 46.85 46.76 46.85
24B. – Other long-term incentives 28.95 22.48 28.95 22.48
ITC Limited
24C. – Other remuneration 13.06 10.51 13.06 10.51
24D. – Share Based Payments 2
25. Outstanding Balances#
i) Receivables 38.61 68.76 46.56 78.17 16.04 14.66 101.21 161.59
ii) Deposits Given 0.60 0.60 0.06 0.08 0.07 0.07 0.73 0.75
iii) Advance Taken 26.96 147.83 719.42 692.41 746.38 840.24
iv) Deposits Taken 0.04 0.04 0.04 0.04
v) Payables 6.25 12.17 6.25 5.91 20.60 13.83 40.35 29.20 73.45 61.11
26. Commitments 0.66 1.51 0.66 1.51
^ includes transactions with entity in which relative of KMP is interested.
* Includes rent pertaining to leases classified as Right of Use Assets.
# The amounts outstanding are unsecured and will be settled in cash.
1 Post employment benefits are actuarially determined on overall basis and hence not separately provided. Payments made on settlement of leave liability upon retirement - ` 2.69 Crores (2022 - ` Nil) 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 Company has recorded
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employee benefits expense by way of share based payments to employees at ` 267.12 Crores for the year ended 31st March, 2023 (2022 - ` 61.20 Crores), of which ` 35.43 Crores (2022 - ` 23.14 Crores) is attributable to Executive Directors and KMPs.
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4. INFORMATION REGARDING SIGNIFICANT TRANSACTIONS / BALANCES

(Generally in excess of 10% of the total transaction value of the same type)
RELATED PARTY TRANSACTIONS SUMMARY 2023 2022 RELATED PARTY TRANSACTIONS SUMMARY 2023 2022 RELATED PARTY TRANSACTIONS SUMMARY 2023 2022
ITC Limited
1. Sale of Goods / Services 12. Contribution to Employees’ Benefit Plans 24B. Other long-term incentives
British American Tobacco (GLP) Limited 1352.17 985.49 ITC Pension Fund 21.02 96.02 S. Puri 10.08 6.52
JSC ‘British American Tobacco-SPb’ 446.96 – IATC Provident Fund 39.47 37.07
N. Anand 4.47 3.26
Surya Nepal Private Limited 328.58 308.47 ITC Management Staff Gratuity Fund 21.04 20.19
R. Tandon (related party up to 21.07.2022) 0.82 3.26
2. Purchase of Goods / Services ITC Employees Gratuity Fund 11.70 10.90
ITC Essentra Limited 438.11 280.19 B. Sumant 5.04 3.26
13. Dividend Income
North East Nutrients Private Limited 176.19 167.68 24C. Other remuneration
ITC Infotech India Limited 149.60 451.56
ITC Infotech India Limited 183.00 166.90 S. Banerjee 1.13 1.04
Surya Nepal Private Limited 383.24 346.84
3. Acquisition cost of Property, Plant and Equipment A. Duggal 1.12 1.03
14. Dividend Payments
ITC Infotech India Limited 14.38 9.96 A. Nayak 1.11 1.01
Tobacco Manufacturers (India) Limited 3648.48 3276.18
4. Sale of Property, Plant and Equipment
Myddleton Investment Company Limited 595.73 534.94 M. Shankar 1.09 1.01
S. K. Singh 0.20 –
15. Interest Income H. Bhargava 1.10 0.70

R. K. Singhi 0.12 –
ITC IndiVision Limited 9.81 0.17 25. Outstanding Balances
S. Sivakumar 0.12 –
North East Nutrients Private Limited 0.10 1.80 (i) Receivables
5. Investment in Subsidiaries / Associate
Wimco Limited 0.45 0.45 British American Tobacco (GLP) Limited 36.35 59.75
WelcomHotels Lanka (Private) Limited 606.14 327.24
ITC Infotech India Limited 448.00 – 16. Expenses Recovered Surya Nepal Private Limited 24.48 59.60
ITC IndiVision Limited 130.00 100.00 British American Tobacco (GLP) Limited 21.97 14.26
ITC Essentra Limited 14.78 12.50
6. Redemption of Preference Shares B.A.T (U.K. and Export) Limited – 4.95
(ii) Deposits Given
North East Nutrients Private Limited 18.00 – British American Tobacco Exports Limited 5.76 –
Russell Credit Limited 1 0.36 0.36
7. Value of share based payment ITC Infotech India Limited 3.74 3.54
Greenacre Holdings Limited 2 0.24 0.24
7A. Capital Contribution for Share Based Payments 17. Expenses Reimbursed
ITC Infotech India Limited (4.09) (21.96) Wimco Limited 1.84 2.11 (iii) Advance Taken
7B. Reimbursement for Share Based Payments Srinivasa Resorts Limited 0.46 0.46 British American Tobacco (GLP) Limited 520.52 692.33
ITC Infotech India Limited 2.36 0.38 Indivate Inc. 0.57 – JSC ‘British American Tobacco-SPb’ 198.80 –
WelcomHotels Lanka (Private) Limited 0.06 0.37 18. Advances Given during the year Surya Nepal Private Limited 26.96 147.83
Fortune Park Hotels Limited 2.23 0.34 Wimco Limited 0.03 0.45 (iv) Deposits Taken
International Travel House Limited 1.46 0.32 19. Adjustment / Receipt towards Refund of Advances International Travel House Limited 0.04 0.04
Surya Nepal Private Limited 0.61 0.28 Wimco Limited 0.03 0.45 (v) Payables
Technico Agri Sciences Limited 1.04 0.17 20. Advances Received during the year
Employee Trust - Pension Funds 24.38 15.07
8. Rent Received British American Tobacco (GLP) Limited 1152.95 1494.26
ITC Infotech India Limited 20.20 20.97 Employee Trust - Gratuity Funds 15.97 14.13
JSC ‘British American Tobacco-SPb’ 650.55 –
Surya Nepal Private Limited 3.08 3.23 ITC Essentra Limited 20.60 13.83
21. Adjustment / Payment towards Refund of Advances
9. Rent Paid North East Nutrients Private Limited 3.83 6.47
British American Tobacco (GLP) Limited 1324.76 967.97
Bay Islands Hotels Limited 2.48 1.31 26. Commitments
JSC ‘British American Tobacco-SPb’ 451.75 –
Landbase India Limited 6.87 6.35 ITC Infotech India Limited 0.66 1.51
Surya Nepal Private Limited 120.87 152.01
Technico Agri Sciences Limited 1.46 1.46
22. Deposits Given during the year # In accordance with Ind AS - 102, the Company has recognised employee benefits expense by way
Gujarat Hotels Limited 4.32 2.51
R. Tandon (related party up to 21.07.2022) – … of share based payments [refer Note 29.3], of which ` 35.43 Crores (2022 - ` 23.14 Crores) is
10. Remuneration of Managers on Deputation reimbursed
23. Adjustment / Receipt towards Refund of Deposit attributable to Executive Directors & KMPs:
Gujarat Hotels Limited 7.06 5.36
R. Tandon (related party up to 21.07.2022) 0.02 – S. Puri ` 9.96 Crores (2022 - ` 6.41 Crores), N. Anand ` 5.07 Crores (2022 - ` 4.15 Crores),
Bay Islands Hotels Limited 1.76 1.30
Fortune Park Hotels Limited 0.69 1.10 24. Remuneration to KMP # R. Tandon (related party upto 21.07.2022) ` 2.26 Crores (2022 - ` 5.04 Crores),
11. Remuneration of Managers on Deputation recovered 24A. Short term benefits B. Sumant ` 4.58 Crores (2022 - ` 2.15 Crores), S. Dutta ` 2.51 Crores (2022 - ` 0.53 Crore) and
ITC Infotech India Limited 10.66 9.17 S. Puri 12.09 10.66 R. K. Singhi ` 0.72 Crore (2022 - ` 0.57 Crore).
Srinivasa Resorts Limited 5.86 5.77 N. Anand 5.96 5.37 1 The maximum indebtedness during the year was ` 0.36 Crore (2022 - ` 0.36 Crore).
Fortune Park Hotels Limited 6.35 5.35 R Tandon (related party up to 21.07.2022) 1.62 4.84 2 The maximum indebtedness during the year was ` 0.24 Crore (2022 - ` 0.24 Crore).
Technico Agri Sciences Limited 4.62 4.56 B. Sumant 5.35 4.84

30. Financial Instruments and Related Disclosures
1. Capital Management
he Company’s financial strategy aims to support its strategic priorities and provide adequate capital to its businesses for growth
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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 10,47,61,810 Ordinary Shares (2022 - 1,44,11,700 Ordinary Shares) of ` 1.00 each
amounting to ` 10.48 Crores (2022 - ` 1.44 Crores) towards its employee stock options. The securities premium stood at
` 13065.62 Crores as at 31st March, 2023 (2022 - ` 9988.14 Crores).
2. Categories of Financial Instruments
(` in Crores)
Particulars Note Carrying Fair Carrying Fair
Value Value Value Value
A. Financial assets
a) Measured at amortised cost
i) Cash and cash equivalents 11 206.88 206.88 184.97 184.97
ii) Other Bank Balances 12 3624.38 3624.38 3692.97 3692.97
iii) Investment in Bonds /
Debentures, Preference
Shares & Government or
Trust Securities 4, 9 8154.48 8174.92 10985.36 11232.53
iv) Investment in Mutual Funds 4 346.05 337.99 278.36 277.12
v) Loans 5 10.02 9.35 10.79 9.75
vi) Trade receivables 10 2321.33 2321.33 1952.50 1952.50
vii) Other financial assets 6 4282.01 4234.05 3829.83 3784.58
Sub-total 18945.15 18908.90 20934.78 21134.42
Measured at Fair value
b)
through OCI
i) Investment in Equity shares 4 1464.41 1464.41 1372.52 1372.52
ii) Investment in Mutual Funds 4 3676.53 3676.53 1238.69 1238.69
Sub-total 5140.94 5140.94 2611.21 2611.21
c) Measured at Fair value through
Profit or Loss
i) Investment in Mutual Funds 9 8711.14 8711.14 8535.85 8535.85
ii) Investment in Bonds / Debentures,
Certificate of Deposit 9 5360.34 5360.34 991.97 991.97
iii) Investment in Venture
Capital Funds 4 119.25 119.25 87.33 87.33
iv) Investment in Equity &
Preference Shares 4 39.34 39.34 20.00 20.00
Sub-total 14230.07 14230.07 9635.15 9635.15
d) Derivatives measured
at fair value
i) Derivative instruments not
designated as hedging instruments 6 2.68 2.68 3.27 3.27
ii) Derivative instruments designated
as hedging instruments 6 29.38 29.38 27.27 27.27
Sub-total 32.06 32.06 30.54 30.54
Total financial assets 38348.22 38311.97 33211.68 33411.32

30. Financial Instruments and Related Disclosures (Contd.)

(` in Crores)
Particulars Note Carrying Fair Carrying Fair
B. Financial liabilities
i) Sales tax deferment loans 14 4.54 3.66 5.28 3.86
ii) Trade payables 4351.26 4351.26 4223.40 4223.40
iii) Lease Liabilities 15 320.13 320.13 305.88 305.88
iv) Other financial liabilities 16 1863.50 1834.49 1513.68 1502.05
Sub-total 6539.43 6509.54 6048.24 6035.19
b) Measured at fair value
16 2.68 2.68 0.45 0.45
designated as hedging instruments
16 4.34 4.34 9.56 9.56
as hedging instruments
iii) Contingent Consideration 16 12.65 12.65 76.40 76.40
Sub-total 19.67 19.67 86.41 86.41
Total financial liabilities 6559.10 6529.21 6134.65 6121.60
3. Financial risk management objectives
he Company has a system-based approach to risk management, anchored to policies and procedures and internal financial
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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.
Liquidity Risk
he Company’s Current assets aggregate ` 35203.44 Crores (2022 - ` 30942.01 Crores) including Current Investments, Cash
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and cash equivalents and Other Bank Balances of ` 20188.33 Crores (2022 - ` 15502.89 Crores) against an aggregate Current
liability of ` 12415.62 Crores (2022 - ` 11478.09 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
` 49.13 Crores (2022 - Nil) (Refer Note 22).
Other Non-current liabilities other than lease liabilities due between one year to three years amounted to ` 154.16 Crores
(2022 - ` 94.99 Crores) and Other Non-current liabilities due after three years amounted to ` 1.61 Crores (2022 - ` 6.05 Crores)
on the reporting date. The maturity analysis of undiscounted lease liabilities are disclosed under Note 27(vii).
urther, while the Company’s total equity stands at ` 67593.80 Crores (2022 - ` 61399.57 Crores), it has non-current borrowings
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of ` 3.28 Crores (2022 - ` 4.54 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.
Market Risk
he Company is not an active investor in equity markets; it holds certain investments in equity for long term value accretion
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which are accordingly measured at fair value through Other Comprehensive Income. The value of investments in such equity
instruments as at 31st March, 2023 is ` 1464.41 Crores (2022 - ` 1372.52 Crores). Accordingly, fair value fluctuations arising from
market volatility is recognised in Other Comprehensive Income.
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.
he Company’s investments are predominantly held in bonds / debentures, fixed deposits, certificate of deposits and debt mutual
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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, certificate of deposits 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 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 underlying portfolio of the mutual fund schemes in which the Company has invested, such price risk
is not significant.
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.
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.
The carrying amounts of foreign currency denominated financial assets and liabilities including derivative contracts, are as follows:
(` in Crores)
As at 31st March, 2023 USD Euro GBP JPY Others Total
Financial Assets 694.77 87.30 18.42 0.27 14.88 815.64

Financial Liabilities 99.88 22.16 2.42 8.24 3.46 136.16

he Company uses foreign exchange forward, futures and options contracts to hedge its exposures in foreign currency arising
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from firm commitments and highly probable forecast transactions.
a. Forward exchange contracts that were outstanding on respective reporting dates:

(In Million)
Designated under Hedge

Accounting
Currency Cross Currency Buy Sell Buy Sell
US Dollar Indian Rupee 47.55 125.68 22.38 586.94

Euro US Dollar 41.94 – 14.09 –
CHF US Dollar – – 1.16 –
GBP US Dollar – – 0.01 –
SEK US Dollar – – 1.36 –
SGD US Dollar – – 0.04 –
JPY US Dollar 123.81 – 324.36 –
The aforesaid hedges have a maturity of less than 1 year from the year end.


(In Million)
Not designated under Hedge
Accounting
Euro US Dollar – 7.25 – 9.15
AUD US Dollar – – 0.04 –
CAD US Dollar – 2.49 – –
CHF US Dollar 0.66 0.20 0.34 –
GBP US Dollar 0.08 2.74 – 8.59
KWD US Dollar – – 0.19 –
JPY US Dollar 232.72 – 53.90 –
b. Currency options that were outstanding on respective reporting dates (Designated under Hedge Accounting):
(In Million)
US Dollar Indian Rupee – 8.00 – 17.00
Hedges of foreign currency risk and derivative financial instruments
he Company has established risk management policies to hedge the volatility in cashflows arising from exchange rate fluctuations
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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 exchange(s), 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.
The Company may also designate certain hedges which are entered to manage the volatility in cashflows as a cash flow hedge
under hedge accounting. 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.
The movement in the cash flow hedging reserve in respect of designated cash flow hedges is summarised below:
(` in Crores)
Particulars 2023 2022

At the beginning of the year 14.33 4.93
Add: Changes in the fair value of effective portion of matured
cash flow hedges during the year (154.16) 16.71
Add: Changes in fair value of effective portion of outstanding
cash flow hedges 17.81 19.27
Less: Amounts transferred to the Statement of Profit and Loss on
occurrence of forecast hedge transactions during the year (81.93) 30.07
Less: Amounts transferred to the Statement of Profit and Loss
due to cash flows no longer expected to occur (28.19) 3.03
Less: Amounts transferred to initial cost of non-financial assets (10.40) (9.68)
Less: Net gain / (loss) transferred to the Statement of Profit and Loss
on Ineffectiveness – –
(Less) / Add: Deferred tax 3.98 (3.16)
At the end of the year 2.48 14.33
Of the above, balances remaining in cash flow hedge reserve for matured
hedging relationships (11.20) 2.46

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, in the anticipated
timeframes given below:
(` in Crores)
Outstanding balance in Cash Flow Hedge As at As at

Reserve to be subsequently recycled from OCI 31st March, 2023 31st March, 2022
Within one year 2.47 10.80

Between one and three years 0.01 3.53
Total 2.48 14.33
Foreign Currency Sensitivity
or every percentage point increase / decrease in the underlying exchange rate of the outstanding foreign currency denominated
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assets and liabilities, including derivative contracts, holding all other variables constant, the profit before tax for the year ended
31st March, 2023 would decrease / increase by ` 2.85 Crores (2022 - ` 2.22 Crores) and other equity as at 31st March, 2023 would
decrease / increase by ` 2.68 Crores (2022 - ` 42.87 Crores) on a pre-tax basis.
Credit Risk
Company’s deployment in debt instruments are 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
certificate of deposits issued by highly rated banks and financial institutions. Of this, investments that are held at amortised cost
stood at ` 15420.01 Crores (2022 - ` 17732.33 Crores). With respect to the Company’s investing activities, mutual fund schemes
and counter parties are shortlisted and exposure limits determined on the basis of their credit rating (by independent agencies),
financial statements and other relevant information. As these counter parties 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 counter party 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. Further, 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. The Company’s exposure to
trade receivables on the reporting date, net of expected loss provisions, stood at ` 2321.33 Crores (2022 - ` 1952.50 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 is recognized, where considered appropriate by responsible management.
he movement of the expected loss provision (allowance for bad and doubtful loans, advances and receivables etc.) made by the
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Company are as under:
(` in Crores)
Expected Loss Provision

Particulars
Opening Balance 214.05 205.11
Add: Provisions made (net) (0.25) 11.71
Less: Utilisation for impairment / de-recognition 3.36 2.77
Effects of foreign exchange fluctuation – –
Closing Balance 210.44 214.05

4. Fair value measurement

The following table presents the fair value hierarchy of financial assets and liabilities measured at fair value on a recurring basis:
(` in Crores)
Fair Value
As at As at
Particulars Hierarchy
(Level)
A. Financial assets
i) Investment in Bonds / Debentures,
Preference Shares & Government or
Trust Securities 2 8174.92 11232.53
ii) Investment in Mutual Funds 1 337.99 277.12
iii) Loans* 3 3.40 4.02
iv) Other Financial assets* 3 3560.27 1527.15
Sub-total 12076.58 13040.82
b) Measured at Fair value through OCI
i) Investment in Equity shares – Quoted 1 1464.36 1370.15
ii) Investment in Equity shares –
Unquoted 3 0.05 2.37
iii) Investment in Mutual Funds 1 3676.53 1238.69
Sub-total 5140.94 2611.21
c) Measured at Fair value
through Profit or Loss
i) Investment in Mutual Funds 1 8711.14 8535.85
Certificate of Deposit 2 5360.34 991.97
iii) Investment in Venture Capital Funds 2 119.25 87.33
iv) Investment in Equity & Preference Shares 3 39.34 20.00
Sub-total 14230.07 9635.15
d) Derivatives measured at fair value
i) Derivative instruments not designated
as hedging instruments 2 2.68 3.27
ii) Derivative instruments designated as
hedging instruments 2 29.38 27.27
Sub-total 32.06 30.54
Total financial assets 31479.65 25317.72
B. Financial Liabilities
i) Sales tax deferment loans* 3 2.40 3.12
ii) Lease liabilities* 3 273.59 259.79
iii) Other Financial liabilities* 3 123.48 84.87
Sub-total 399.47 347.78
i) Derivative instruments not designated
ii) Derivative instruments designated as
hedging instruments 2 4.34 9.56
iii) Contingent Consideration 3 12.65 76.40
Sub-total 19.67 86.41
Total financial liabilities 419.14 434.19
* Represents Fair value of Non-current Financial Instruments.

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 is as under:
(` in Crores)
Financial Financial Financial Financial Financial Financial
Assets Assets Liabilities Assets Assets Liabilities
at FVTPL at FVTOCI at FVTPL at FVTPL at FVTOCI at FVTPL
Opening Balance 20.00 2.37 76.40 – 2.37 139.51

Additions during the year 39.34 – – 20.00 – –
Sale / Transfer / Settlement during the year 20.00 – 63.75 – – 71.25
Gain / (Loss) during the year recognised in
Other Income – – – – – (8.14)
Other Comprehensive Income – (2.32) – – – –
Closing Balance 39.34 0.05 12.65 20.00 2.37 76.40
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).
he fair value of financial instruments that are not traded in an active market is determined using market approach and valuation
T
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.
erivatives are valued using valuation techniques with market observable inputs such as foreign exchange spot rates and forward
D
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, Certificate of Deposits, 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.
Level 3: Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).
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 counterparty.
he fair value of trade receivables, trade payables and other current financial assets and liabilities is considered to be equal to the
T
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 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.

R. K. SINGHI Company Secretary

INDEPENDENT AUDITOR’S REPORT
To the Members of ITC Limited
Report on the Audit of the Standalone Ind AS Financial Institute of Chartered Accountants of India together with
Statements the ethical requirements that are relevant to our audit
Opinion of the financial statements under the provisions of the
Act and the Rules thereunder, and we have fulfilled our
We have audited the accompanying standalone Ind AS other ethical responsibilities in accordance with these
financial statements of ITC Limited (“the Company”), which requirements and the Code of Ethics. We believe that
comprise the Balance Sheet as at March 31, 2023, the the audit evidence we have obtained is sufficient and
Statement of Profit and Loss, including the statement of appropriate to provide a basis for our audit opinion on the
Other Comprehensive Income, the Cash Flow Statement standalone Ind AS financial statements.
and the Statement of Changes in Equity for the year
Key Audit Matters
then ended, and notes to the standalone Ind AS financial
statements, including a summary of significant accounting Key audit matters are those matters that, in our professional
policies and other explanatory information. judgement, were of most significance in our audit of the
standalone Ind AS financial statements for the financial year
In our opinion and to the best of our information and
ended March 31, 2023. These matters were addressed in
according to the explanations given to us, the aforesaid
the context of our audit of the standalone Ind AS financial
standalone Ind AS financial statements give the information
statements as a whole, and in forming our opinion thereon,
required by the Companies Act, 2013, as amended
and we do not provide a separate opinion on these matters.
(“the Act”) in the manner so required and give a true
For each matter below, our description of how our audit
and fair view in conformity with the accounting principles
addressed the matter is provided in that context.
generally accepted in India, of the state of affairs of the
Company as at March 31, 2023, its profit including other We have determined the matters described below to be
comprehensive income, its cash flows and the changes in the key audit matters to be communicated in our report.
equity for the year ended on that date. We have fulfilled the responsibilities described in the
Auditor’s responsibilities for the audit of the standalone
Basis for Opinion
Ind AS financial statements section of our report, including
We conducted our audit of the standalone Ind AS financial in relation to these matters. Accordingly, our audit included
statements in accordance with the Standards on Auditing the performance of procedures designed to respond to
(SAs), as specified under section 143(10) of the Act. our assessment of the risks of material misstatement of
Our responsibilities under those Standards are further the standalone Ind AS financial statements. The results of
described in the ‘Auditor’s Responsibilities for the Audit our audit procedures, including the procedures performed
of the Standalone Ind AS Financial Statements’ section to address the matters below, provide the basis for our
of our report. We are independent of the Company audit opinion on the accompanying standalone Ind AS
in accordance with the ‘Code of Ethics’ issued by the financial statements.
Key audit matters How our audit addressed the key audit matter
Revenue recognition
Revenue from the sale of goods (hereinafter referred Our audit procedures included the following:
to as “Revenue”) is recognised when the Company
Assessed the Company’s revenue recognition
performs its obligation to its customers and the amount accounting policies in line with Ind AS 115 (“Revenue
of revenue can be measured reliably and recovery of the from Contracts with Customers”) and tested thereof.
consideration is probable. The timing of such revenue
recognition in case of sale of goods is when the control
Evaluated the integrity of the general information
over the same is transferred to the customer, which is and technology control environment and testing the
mainly upon delivery. operating effectiveness of key IT application controls
over recognition of revenue.
The timing of revenue recognition is relevant to
the reported performance of the Company. The Evaluated the design, implementation and operating
management considers revenue as a key measure for effectiveness of Company’s controls in respect of
revenue recognition.

Independent Auditor’s Report
evaluation of performance. There is a risk of revenue Tested the effectiveness of such controls over revenue
being recorded before control is transferred. cut off at year-end.
Refer Note 1 to the Standalone Ind AS Financial On a sample basis, tested supporting documentation
Statements - Significant Accounting Policies and Note for sales transactions recorded during the year which
21A / 21B. 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.
Impairment assessment of investment in WelcomHotels Lanka (Private) Limited (‘WLPL’), a wholly owned
subsidiary
WLPL is developing a mixed-use project in Colombo, Our audit procedures included the following:
Sri Lanka which includes a hotel and a residential
Evaluated the key judgements
/
assumptions
apartment complex. At March 31, 2023, the carrying underlying management’s assessment of potential
value of Company’s investment in WLPL is INR 2,775.41 indicators of impairment.
crores. The Company’s investments in subsidiaries
Obtained and read the projections / estimated selling
are assessed annually by management for potential
price / future cashflows along with sensitivity analysis
indicators of impairment.
thereof of the underlying PPE and inventory at WLPL.
In view of the deterioration in the macro-economic
Discussed and obtained assessment of recoverable
scenario in Sri Lanka, the Company has assessed the
value of PPE and inventory from component auditor
carrying value of investments basis evaluation of the
of WLPL.
recoverable value of the capital work in progress of the
hotel (PPE) and inventory of the residential apartments Evaluated management’s methodology, assumptions
being developed by WLPL. The said determination is and estimates used in these calculations.
based on assumptions, that by their nature imply the
Involved valuation specialist to review the
use of the management’s judgement, in particular with appropriateness of methodology and key assumptions
reference to forecast of future cash flows, selling price, considered by management to determine discounted
balance cost to complete the project, selling costs, future cash flows.
terminal value, long-term growth rates and discount

Performed sensitivity analysis around impact on
rates applied to such forecasted cash flows. Considering
future cash flows due to changes in key assumptions
the judgement required for estimating the cash flows
considered by management.
and the assumptions used, this is considered as a key
audit matter. Verified the arithmetical accuracy of the future cash flow
model including comparison with approved budgets.
Refer Note 1 – Significant Accounting Policies and Note
2 – Use of estimates and judgements to the Standalone Assessed the recoverability of investment with regard
Ind AS Financial Statements to underlying value in use of PPE and net realisable
value of inventory in WLPL.

We have determined that there are no other key audit In preparing the standalone Ind AS financial statements,
matters to communicate in our report. management is responsible for assessing the Company’s
Information Other than the Financial Statements and ability to continue as a going concern, disclosing, as
Auditor’s Report Thereon applicable, matters related to going concern and using the
going concern basis of accounting unless management
The Company’s Board of Directors is responsible for the either intends to liquidate the Company or to cease
other information. The other information comprises the operations, or has no realistic alternative but to do so.
information included in the Annual Report, but does not
Those Board of Directors are also responsible for
include the standalone Ind AS financial statements and
overseeing the Company’s financial reporting process.
our auditor’s report thereon.
Auditor’s Responsibilities for the Audit of the
Our opinion on the standalone Ind AS financial statements
Standalone Ind AS Financial Statements
does not cover the other information and we do not
express any form of assurance conclusion thereon. Our objectives are to obtain reasonable assurance about
whether the standalone Ind AS financial statements as
In connection with our audit of the standalone Ind AS
a whole are free from material misstatement, whether
financial statements, our responsibility is to read the other
due to fraud or error, and to issue an auditor’s report that
information and, in doing so, consider whether such other
includes our opinion. Reasonable assurance is a high
information is materially inconsistent with the financial
level of assurance, but is not a guarantee that an audit
statements or our knowledge obtained in the audit or
conducted in accordance with SAs will always detect a
otherwise appears to be materially misstated. If, based on
material misstatement when it exists. Misstatements can
the work we have performed, we conclude that there is
arise from fraud or error and are considered material if,
a material misstatement of this other information, we are
individually or in the aggregate, they could reasonably be
required to report that fact. We have nothing to report in
expected to influence the economic decisions of users
this regard.
taken on the basis of these standalone Ind AS financial
Responsibilities of Management for the Standalone statements.
Ind AS Financial Statements
As part of an audit in accordance with SAs, we exercise
The Company’s Board of Directors is responsible for professional judgement and maintain professional
the matters stated in section 134(5) of the Act with skepticism throughout the audit. We also:
respect to the preparation of these standalone Ind AS
•
Identify and assess the risks of material misstatement
financial statements that give a true and fair view of the
of the standalone Ind AS financial statements, whether
financial position, financial performance including other
due to fraud or error, design and perform audit
comprehensive income, cash flows and changes in
procedures responsive to those risks, and obtain audit
equity of the Company in accordance with the accounting
evidence that is sufficient and appropriate to provide a
principles generally accepted in India, including the
basis for our opinion. The risk of not detecting a material
Indian Accounting Standards (Ind AS) specified under
misstatement resulting from fraud is higher than for one
section 133 of the Act read with the Companies (Indian
resulting from error, as fraud may involve collusion,
Accounting Standards) Rules, 2015, as amended. This
forgery, intentional omissions, misrepresentations, or
responsibility also includes maintenance of adequate
the override of internal control.
accounting records in accordance with the provisions of
the Act for safeguarding of the assets of the Company and •
Obtain an understanding of internal control relevant
for preventing and detecting frauds and other irregularities; to the audit in order to design audit procedures that
selection and application of appropriate accounting policies; are appropriate in the circumstances. Under section
making judgements and estimates that are reasonable and 143(3)(i) of the Act, we are also responsible for
prudent; and the design, implementation and maintenance expressing our opinion on whether the Company has
of adequate internal financial controls, that were operating adequate internal financial controls with reference
effectively for ensuring the accuracy and completeness of to financial statements in place and the operating
the accounting records, relevant to the preparation and effectiveness of such controls.
presentation of the standalone Ind AS financial statements •
Evaluate the appropriateness of accounting policies
that give a true and fair view and are free from material used and the reasonableness of accounting estimates
misstatement, whether due to fraud or error. and related disclosures made by management.

•
Conclude on the appropriateness of management’s use 2. As required by Section 143(3) of the Act, we report that:
of the going concern basis of accounting and, based (a) We have sought and obtained all the information
on the audit evidence obtained, whether a material and explanations which to the best of our knowledge
uncertainty exists related to events or conditions that and belief were necessary for the purposes of
may cast significant doubt on the Company’s ability our audit;
to continue as a going concern. If we conclude that
(b) In our opinion, proper books of account as required
a material uncertainty exists, we are required to
by law have been kept by the Company so far as it
draw attention in our auditor’s report to the related
appears from our examination of those books;
disclosures in the financial statements or, if such
disclosures are inadequate, to modify our opinion. Our (c) The Balance Sheet, the Statement of Profit and Loss
conclusions are based on the audit evidence obtained including the Statement of Other Comprehensive
up to the date of our auditor’s report. However, future Income, the Cash Flow Statement and Statement
events or conditions may cause the Company to cease of Changes in Equity dealt with by this Report are
to continue as a going concern. in agreement with the books of account;
•
Evaluate the overall presentation, structure and (d) In our opinion, the aforesaid standalone Ind AS
financial statements comply with the Accounting
content of the standalone Ind AS financial statements,
Standards specified under Section 133 of the
including the disclosures, and whether the standalone
Act, read with Companies (Indian Accounting
Ind AS financial statements represent the underlying
Standards) Rules, 2015, as amended;
transactions and events in a manner that achieves fair
presentation. (e) On the basis of the written representations
received from the directors as on March 31, 2023
We communicate with those charged with governance
taken on record by the Board of Directors, none of
regarding, among other matters, the planned scope and
the directors is disqualified as on March 31, 2023
timing of the audit and significant audit findings, including
from being appointed as a director in terms of
any significant deficiencies in internal control that we
Section 164 (2) of the Act;
identify during our audit.
(f) With respect to the adequacy of the internal
We also provide those charged with governance with financial controls with reference to these standalone
a statement that we have complied with relevant Ind AS financial statements and the operating
ethical requirements regarding independence, and effectiveness of such controls, refer to our separate
to communicate with them all relationships and other Report in “Annexure 2” to this report;
matters that may reasonably be thought to bear on our
(g) In our opinion, the managerial remuneration for the
independence, and where applicable, related safeguards.
year ended March 31, 2023 has been paid / provided
From the matters communicated with those charged with by the Company to its directors in accordance with
governance, we determine those matters that were of the provisions of section 197 read with Schedule V
most significance in the audit of the standalone Ind AS to the Act;
financial statements for the financial year ended March
(h) With respect to the other matters to be included in
31, 2023 and are therefore the key audit matters. We
the Auditor’s Report in accordance with Rule 11 of
describe these matters in our auditor’s report unless law the Companies (Audit and Auditors) Rules, 2014,
or regulation precludes public disclosure about the matter as amended in our opinion and to the best of our
or when, in extremely rare circumstances, we determine information and according to the explanations
that a matter should not be communicated in our report given to us:
because the adverse consequences of doing so would
i.
The Company has disclosed the impact of
reasonably be expected to outweigh the public interest
pending litigations on its financial position in its
benefits of such communication.
standalone Ind AS financial statements – Refer
Report on Other Legal and Regulatory Requirements Note 27(v)(a) to the standalone Ind AS financial
1. As required by the Companies (Auditor’s Report) Order, statements;
2020 (“the Order”), issued by the Central Government ii.
The Company did not have any long-term
of India in terms of sub-section (11) of section 143 of contracts including derivative contracts for
the Act, we give in the “Annexure 1” a statement on the which there were any material foreseeable
matters specified in paragraphs 3 and 4 of the Order. losses;

iii.
There has been no delay in transferring or provide any guarantee, security or the like
amounts, required to be transferred, to the on behalf of the Ultimate Beneficiaries; and
Investor Education and Protection Fund by the c)
Based on such audit procedures performed
Company that have been considered reasonable and
iv.
a)
The management has represented that, appropriate in the circumstances, nothing has
to the best of its knowledge and belief, no come to our notice that has caused us to believe
funds have been advanced or loaned or that the representations under sub-clause (a)
invested (either from borrowed funds or and (b) contain any material misstatement.
share premium or any other sources or kind v. The final dividend paid by the Company during
of funds) by the Company to or in any other the year in respect of the same declared for the
person or entity, including foreign entities previous year is in accordance with section 123
(“Intermediaries”), with the understanding, of the Act to the extent it applies to payment of
whether recorded in writing or otherwise, dividend.
that the Intermediary shall, whether, directly
or indirectly lend or invest in other persons or The interim dividend declared and paid by the
entities identified in any manner whatsoever Company during the year and until the date of
by or on behalf of the Company (“Ultimate this audit report is in accordance with section
Beneficiaries”) or provide any guarantee, 123 of the Act.
security or the like on behalf of the Ultimate As stated in Note B of Statement of changes
Beneficiaries; in equity to the standalone Ind AS financial
b)
The management has represented that, statements, the Board of Directors of the
to the best of its knowledge and belief, no Company have proposed final dividend for
funds have been received by the Company the year which is subject to the approval of
from any person or entity, including foreign the members at the ensuing Annual General
entities (“Funding Parties”), with the Meeting. The dividend declared is in accordance
understanding, whether recorded in writing with section 123 of the Act to the extent it applies
or otherwise, that the Company shall, to declaration of dividend.
whether, directly or indirectly, lend or invest vi.
As proviso to Rule 3(1) of the Companies
in other persons or entities identified in any (Accounts) Rules, 2014 is applicable for the
manner whatsoever by or on behalf of the Company only w.e.f. April 1, 2023, reporting
Funding Party (“Ultimate Beneficiaries”) under this clause is not applicable.

ICAI Firm Registration Number: 324982E / E300003
per Arvind Sethi

Partner
Membership Number: 89802
Place of Signature: Frankfurt
Date: May 18, 2023 UDIN: 23089802BGYPWJ5272

Annexure 1 referred to in paragraph 1 under the heading “Report

on Other legal and Regulatory Requirements” of our report of even date

Re: ITC Limited (the “Company”)
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:
(i) (a) (A) The Company has maintained proper records showing full particulars, including quantitative details and situation
of property, plant and equipment.
(B) The Company has maintained proper records showing full particulars of intangibles assets.
(b) The property, plant and equipment were physically verified during the year by the management in accordance with
a regular programme of verification which, in our opinion, provides for physical verification of all the property, plant
and equipment at reasonable intervals. According to the information and explanations given to us, no material
discrepancies were noticed on such verification.
(c) According to the information and explanations given by the management, the title deeds of all the immovable
properties (other than properties where the Company is the lessee and the lease agreements are duly executed in
favour of the lessee) are held in the name of the Company.
(d) The Company has not revalued its Property, Plant and Equipment (including Right of use assets) or intangible assets
during the year ended March 31, 2023.
(e) There are no proceedings initiated or are pending against the Company for holding any benami property under the
Prohibition of Benami Property Transactions Act, 1988 and rules made thereunder.
(ii) (a) 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.
Inventories lying with third parties have substantially been confirmed by them as at year end. No discrepancies of
10% or more in aggregate for each class of inventory (including inventories lying with third parties) were noticed.
(b) 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 on the basis of security of inventories of the Company. Based on
the records examined by us in the normal course of audit of the financial statements, the quarterly returns / statements
filed by the Company with such banks are in agreement with the books of account of the Company.
(iii) (a) 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.
(b) During the year the investments made by the Company is 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 and hence not commented upon.
(c) 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.
(iv) In our opinion and according to the information and explanations given to us, provisions of section 185 and 186 of the
Companies Act, 2013 in respect of loans to directors including entities in which they are interested and in respect of
loans and advances given, investments made and, guarantees, and securities given have been complied with by the
Company.
(v) According to the information and explanations given to us, the Company has not accepted any deposit from the public
nor accepted any amounts which are 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 or Reserve Bank of India or any
Court or any other Tribunal.
(vi) 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.
(vii) (a) 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.
(b) 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.
(c) The dues of income-tax, sales-tax, service tax, duty of custom, duty of excise, value added tax, cess and other
statutory dues have not been deposited on account of any dispute, are as follows:
Name of Nature of Amount Period to which Forums where the dispute

the statute the dues (` in Crores)* the amount relates is pending
(Financial Year)
Sales Tax and Sales Tax 38.93 1987-2020 Appellate Authority –

Value Added and VAT upto commissioners’ /
Tax Laws Revisional Authorities Level
33.69 2006-2018 Appellate Authority –
Tribunal Level
229.78 1979-2017 High Court
Customs Act, Customs 0.87 2012-2021 Appellate Authority –

1962 Duty upto commissioners’ /
Revisional Authorities Level
Tribunal Level
5.21 2006-2009 High Court
Central Excise Excise Duty 0.33 1996-2017 Appellate Authority –
Act, 1944 upto commissioners’ /
Tribunal Level
4.46 2004-2012 High Court
Finance Act, Service Tax 3.04 2007-2017 Appellate Authority –
1994 upto commissioners’ /
Tribunal Level
5.40 2005-2017 High Court
Entry Tax Laws Entry Tax 0.15 2005-2017 Appellate Authority –
upto commissioners’ /
Tribunal Level
68.49 1999-2018 High Court

Name of Nature of Amount Period to which Forums where the dispute
the statute the dues (` in Crores)* the amount relates is pending
(Financial Year)
Luxury Tax Laws Luxury Tax 54.95 1999-2004 Supreme Court
Goods and Goods and 4.76 2017-2019 Appellate Authority –

Services Tax Services Tax upto commissioners’ /
0.01 2017 High Court
Mandi Laws Mandi Fees 2.03 2010-2022 Mandi Board

& Cess
1.80 2001-2023 High Court
Municipal, Local Municipal, 3.44 2014-2021 Appellate Authority –

Bodies and Local upto commissioners’ /
Property Tax Bodies and Revisional Authorities
Laws Property Level / Municipal Council
Taxes & 2.40 2004 Appellate Authority –
Charges Tribunal Level
31.43 2001-2018 High Court
Stamp Duty Stamp Duty 4.22 2004-2016 Registrar /

Laws Appellate Authority
0.03 1987-2008 High Court
The Employees’ Provident 0.49 2012-2020 Appellate Authority- Tribunal

Provident Fund Level
Funds and
Miscellaneous
Provisions Act,
1952 1.52 1982-1990 High Court
Employees’ Employees’ 0.08 2007-2014 Principal Labour Court

State Insurance State
Act, 1948 Insurance
0.06 1995-1996 High Court
O
ut of the total disputed dues aggregating ` 661.86 Crores as above, ` 559.14 Crores pertain to matters which have
been stayed for recovery by the relevant authorities.
*Net of amount paid under protest.
(viii) 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.
(ix) (a) The Company has not defaulted in repayment of loans or other borrowings or in the payment of interest thereon to
any lender.
(b) The Company has not been declared wilful defaulter by any bank or financial institution or government or any
government authority.

(c) 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.
(d) 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.
(e) On an overall examination of the financial statements of the Company, the Company has not taken any funds from
any entity or person on account of or 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.
(f) 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.
(x) (a) 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.
(b) 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 and hence, the requirement to report on clause 3(x)(b) of the
Order is not applicable to the Company.
(xi) (a) No fraud by the Company or no material fraud on the Company has been noticed or reported during the year.
(b) During the year, no report under sub-section (12) of section 143 of the Companies Act, 2013 has been filed by
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.
(c) We have taken into consideration the whistle blower complaints received by the Company during the year while
determining the nature, timing and extent of audit procedures.
(xii) 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.
(xiii) According to the information and explanations given by the management, transactions with the related parties are in
compliance with section 177 and 188 of 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.
(xiv) (a) The Company has an internal audit system commensurate with the size and nature of its business.
(b) 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.
(xv) 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 Companies Act, 2013.
(xvi) (a) 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.
(b) 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.
(c) The Company is not a Core Investment Company as defined in the regulations made by Reserve Bank of India.
Accordingly, the requirement to report on clause 3(xvi) of the Order is not applicable to the Company.
(d) 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.

(xvii) The Company has not incurred cash losses in the current year and in the immediately preceding financial year.
(xviii) There has been no resignation of the statutory auditors during the year and accordingly requirement to report on
Clause 3(xviii) of the Order is not applicable to the Company.
(xix) On the basis of the financial ratios disclosed in note 27 (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 on the date of the audit report that Company is not capable of meeting its liabilities existing at the
date of 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. We further state that our reporting is based
on the facts up to the date of the audit report and we neither give any guarantee nor any assurance that all liabilities
falling due within a period of one year from the balance sheet date, will get discharged by the Company as and when
they fall due.
(xx) (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 second proviso to sub section 5
of section 135 of the Act. This matter has been disclosed in note 27 (iii) to the financial statements.
(b) All amounts that are unspent under section (5) of section 135 of Companies Act, pursuant to any ongoing project,
has been transferred to special account in compliance of with provisions of sub section (6) of section 135 of the
said Act. This matter has been disclosed in note 27 (iii) to the financial statements.

per Arvind Sethi

Partner

Annexure 2 to the Independent Auditor’s Report of even date on

the Standalone Financial Statements of ITC Limited

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act,
2013 (“the Act”)
We have audited the internal financial controls with reference to standalone financial statements of ITC Limited (“the
Company”) as of March 31, 2023 in conjunction with our audit of the standalone financial statements of the Company for
the year ended on that date.
Management’s Responsibility for Internal Financial Controls
The Company’s Management is responsible for establishing and maintaining internal financial controls 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 on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of
Chartered Accountants of India (“ICAI”). These responsibilities include the design, implementation and maintenance of
adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its
business, including adherence to the Company’s policies, the safeguarding of its assets, the prevention and detection of
frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial
information, as required under the Companies Act, 2013.
Our responsibility is to express an opinion on the Company’s internal financial controls with reference to these standalone
financial statements based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal
Financial Controls Over Financial Reporting (the “Guidance Note”) and the Standards on Auditing, as specified under
section 143(10) of the Act, to the extent applicable to an audit of internal financial controls, both issued by ICAI. Those
Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether adequate internal financial controls with reference to these standalone financial
statements was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls
with reference to these standalone financial statements and their operating effectiveness. Our audit of internal financial
controls with reference to standalone financial statements included obtaining an understanding of internal financial controls
with reference to these standalone financial statements, assessing the risk that a material weakness exists, and testing
and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures
selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion
on the Company’s internal financial controls with reference to these standalone financial statements.
Meaning of Internal Financial Controls With Reference to these Standalone Financial Statements
A company’s internal financial controls with reference to standalone financial statements is a process designed to provide
reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting principles. A company’s internal financial controls with reference

to standalone financial statements includes those policies and procedures that (1) pertain to the maintenance of records
that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements
in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being
made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable
assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company’s assets
that could have a material effect on the financial statements.
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. Also, projections of any evaluation of the internal financial controls with reference to standalone
financial statements to future periods are subject to the risk that the internal financial control with reference to standalone
financial statements may become inadequate because of changes in conditions, or that the degree of compliance with the
policies or procedures may deteriorate.
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 with reference to standalone financial statements were operating
effectively as at March 31, 2023, 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.

per Arvind Sethi

Partner

Guide to Subsidiaries / Joint Ventures / Associates
Subsidiaries of ITC Limited Subsidiary
Greenacre Holdings Limited, a wholly owned subsidiary,
Surya Nepal Private Limited, Nepal is engaged in property infrastructure maintenance,
Shareholding and providing engineering, procurement, construction
59% held by ITC Limited. management and project management consultancy
services.
Nature of Business
Manufacture and sale of cigarettes & branded packaged Gold Flake Corporation Limited (GFCL)
food products and also in the business of matches and Shareholding
agarbatti. 100% held by ITC Limited.
North East Nutrients Private Limited Nature of Business
Shareholding General trading.
76% held by ITC Limited. Joint Venture
ITC Essentra Limited, India, is a 50% joint venture of GFCL
Nature of Business
with Essentra Filter Products International Limited, UK.
The Company is in the business of manufacture and sale
of packaged food products from its food processing facility Nature of Business
based in Assam. Manufacture and sale of cigarette filter rods.
ITC Infotech India Limited (I3L) ITC Integrated Business Services Limited (IIBSL)
(formerly known as ITC Investments & Holdings Limited)
Shareholding
100% held by ITC Limited. Shareholding
100% held by ITC Limited.
Nature of Business
Nature of Business
Information technology services and solutions.
Until FY 2021-22, the company was an ‘Unregistered
Subsidiaries Core Investment Company’ within the meaning of
I3L owns 100% of the shareholding of : the Core Investment Companies (Reserve Bank)
ITC Infotech (USA), Inc. (I2A) Directions, 2016. The company during the year, entered
into the business of providing support to the Business
ITC Infotech Limited, UK (I2B)
Shared Services operations of your Company. For
ITC Infotech Do Brasil LTDA., Brazil (I2B2) this purpose, the company also changed its name to
ITC Infotech France SAS (I2F) ‘ITC Integrated Business Services Limited’ with effect
ITC Infotech GmbH, Germany (I2G) and from 20th December, 2022. Accordingly, the company
ITC Infotech Malaysia SDN. BHD. (I2M) ceased to be an ‘Unregistered Core Investment Company’
as aforesaid.
I2A owns 100% of the shareholding of Indivate Inc.
incorporated as a New Jersey Corporation. Subsidiary
I2A, I2B, I2B2, I2F, I2G and I2M are engaged / will be IIBSL owns 100% shareholding in MRR Trading &
engaged in the information technology services business. Investment Company Limited, which provides estate
Indivate Inc. is principally engaged in providing business maintenance services.
consulting services and opportunity based trading of
Technico Pty Limited, Australia (Technico)
FMCG products.
Shareholding
Russell Credit Limited 100% held by ITC Limited.
Shareholding Nature of Business
100% held by ITC Limited. An agri-biotechnology company primarily engaged in
Nature of Business commercialisation of seed potatoes with TECHNITUBER®
technology.
Investment company. Its activities are primarily confined
to making long-term investments in strategic thrust Subsidiaries
areas for ITC, namely FMCG, Hotels & Tourism, Paper, Technico has two wholly owned subsidiaries, namely
Paperboards & Packaging, Agri Business and Information Technico Technologies Inc., Canada and Technico Asia
Technology. Holdings Pty Limited, Australia.

Technico Asia Holdings Pty Limited has a wholly owned Nature of Business
subsidiary, Technico Horticultural (Kunming) Company The Company owns the hotel “Welcomhotel Bay Island” at
Limited, China. Port Blair, which is licensed to ITC Limited.
These companies support Technico in the production and
commercialisation of seed potato technology in different Landbase India Limited
geographies. Shareholding
Technico Agri Sciences Limited 100% held by ITC Limited.
Shareholding Nature of Business

100% held by ITC Limited. Hospitality, management and operation of golf course and
real estate development.
Nature of Business
The Company owns the Classic Golf & Country Club, a
An agri-biotechnology company primarily engaged in rapid 27-hole Jack Nicklaus Signature Golf Course. It also owns
multiplication and commercialisation of seed potatoes
a 104 key all suite luxury retreat “ITC Grand Bharat” which
with TECHNITUBER® technology & sourcing / supply of
is licensed to and operated by ITC Limited.
fruits and vegetables.
Wimco Limited
Shareholding
Shareholding
Nature of Business
Nature of Business
Wimco Limited is engaged in fabrication & assembly of
The Company is in the process of setting up a greenfield
machinery for tube filling, cartoning, wrapping, conveyor
manufacturing facility for manufacture and export of
solutions and engineering services.
nicotine and nicotine derivative products.
WelcomHotels Lanka (Private) Limited, Sri Lanka Pavan Poplar Limited & Prag Agro Farm Limited
Shareholding Shareholding
100% held by ITC Limited. 100% held by ITC Limited.
Nature of Business Nature of Business

The Company is developing a mixed-use project The Companies are engaged in the business of
comprising a luxury hotel and a super-premium residential agro-forestry and other related activities.
apartment complex in Colombo.
Srinivasa Resorts Limited Shareholding
Shareholding 100% held by ITC Limited
68% held by ITC Limited. Nature of Business
Nature of Business The Company is in the process of setting up a greenfield
The Company owns the hotel “ITC Kakatiya” at Hyderabad, manufacturing facility for manufacture and sale of moulded
for which operating services are rendered by ITC Limited. fibre products.
Fortune Park Hotels Limited Joint Ventures of ITC Limited

Shareholding Maharaja Heritage Resorts Limited
100% held by ITC Limited. Maharaja Heritage Resorts Limited, where ITC Limited has
Nature of Business an ownership interest of 50% (25% held through Russell
The Company is in the business of providing operating Credit Limited, a 100% subsidiary of the Company), is a
services in the mid-market to upscale segment under its joint venture with Jodhana Heritage Resorts Private Limited.
hospitality brands. It currently operates 43 properties. Nature of Business
Bay Islands Hotels Limited The joint venture company currently provides Franchise
& Marketing Services to 36 operational hotel properties
Shareholding spread across 14 States with its WelcomHeritage brand
100% held by ITC Limited. portfolio comprising “Legend Hotels”, “Heritage Hotels”

and “Nature Resorts”, which provide uniquely differentiated Principles of Consolidation
offerings to guests in the cultural, heritage and adventure The Group’s interests in its subsidiaries, associates and
tourism segments respectively. joint ventures are reflected in the Consolidated Financial
Statements (CFS) in accordance with the relevant Indian
Logix Developers Private Limited
Accounting Standards (Ind AS) specified under Section
ITC Limited holds 27.90% in Logix Developers 133 of the Companies Act, 2013.
Private Limited.
Nature of Business Subsidiaries (Ind AS 110)
The joint venture company is intended for the purpose of Line by line consolidation of the Statement of Profit and
developing a luxury hotel-cum-serviced apartment complex Loss and Balance Sheet is done by aggregating like items
at Noida, Uttar Pradesh. Also refer Management Discussion of assets, liabilities, income and expenses.
& Analysis for update in respect of the joint venture. The excess / deficit of the cost to ITC Limited of its
investments in its subsidiaries over its share of net
Espirit Hotels Private Limited
worth (residual interest in the assets of the subsidiaries
ITC Limited held 26% equity stake in Espirit Hotels Private after deducting all its liabilities) of the subsidiaries at
Limited as on 31st March, 2023 (the said investment was the date of investment in the subsidiaries are treated
divested on 7th April, 2023. Refer Management Discussion as goodwill / capital reserve in the CFS. The goodwill is
& Analysis for details). disclosed as an asset and capital reserve as a reserve in
Nature of Business the Consolidated Balance Sheet.
The joint venture company was intended for the purpose Profit or loss and each component of other comprehensive
of developing a luxury hotel complex at Begumpet, income are attributed to the Group as owners and to
Hyderabad. the non-controlling interest; likewise the non-controlling
interests in the net assets of the consolidated subsidiaries
Major Associates of the Group is identified and presented separately within Equity in the
Consolidated Balance Sheet.
International Travel House Limited (ITHL)
Inter-Company transactions within the Group (both
ITC Limited holds 3.60% and Russell Credit Limited, a
Balance Sheet and Profit or Loss items) are eliminated for
100% subsidiary of ITC Limited, holds 45.36% in ITHL.
arriving at the Group CFS.
Nature of Business CFS is prepared applying uniform accounting policies of
Air ticketing, car rentals, inbound outbound tourism, ITC Limited to the Group companies.
domestic holidays, conferences, events & exhibition
management and foreign exchange services for travellers. Associates and Joint Ventures (Ind AS 28)
An investment in associate and joint venture is initially
Gujarat Hotels Limited
recognised at cost on the date of the investment, and is
ITC Limited holds 45.78% in Gujarat Hotels Limited.
inclusive of any goodwill / capital reserve embedded in
Nature of Business the cost.
The Company owns the “Welcomhotel Vadodara” at Only share of net profits / losses of associates / joint
Vadodara which is operated by ITC Limited under an ventures is considered in Consolidated Statement of
Operating Licence Agreement. Profit and Loss. The carrying amount of the investment in
Note: The full list of the Group’s Associates appears on associates / joint ventures is adjusted by the share of net
page 283. profits / losses in the Consolidated Balance Sheet.

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)
Statement containing salient features of the financial statement of Subsidiaries / Associate companies / Joint Ventures
Part A : Subsidiaries
(` in Crores)
Name of the Subsidiary ITC Infotech ITC Infotech ITC Infotech Indivate Inc. ITC Infotech ITC Infotech ITC Infotech Surya Nepal Technico Pty Technico
India Limited (USA), Inc. Limited Do Brasil France SAS GmbH Private Limited Agri
LTDA. Limited Sciences
Limited
1. The date since when

subsidiary was acquired 21-Aug-2000 17-Jun-1993 26-Jan-1993 18-Nov-2016 10-Oct-2022 08-Feb-2023 10-Mar-2023 20-Aug-2002 17-Aug-2007 17-Aug-2007
2. Financial Year ending on 31-Mar-2023 31-Mar-2023 31-Mar-2023 31-Mar-2023 31-Mar-2023 31-Mar-2023 31-Mar-2023 14-Mar-2023 31-Mar-2023 31-Mar-2023
Reporting Currency Indian Rupee US Dollar British Pound US Dollar Brazilian Real Euro Euro Nepalese Australian Indian Rupee
Rupee Dollar
3.
Exchange Rate on the last day
of the financial year – 82.1700 101.6475 82.1700 16.1292 89.4425 89.4425 0.6250 55.0250 –
4. Share Capital 88.00 149.55 6.97 0.82 4.19 26.83 25.49 126.00 107.24 37.96
5. Reserves & Surplus 1337.95 95.53 82.61 6.82 0.19 0.01 … 669.14 (48.29) 105.99
6. Total Assets 2364.72 398.41 125.59 20.38 5.55 26.90 25.55 1174.12 63.76 279.10
7. Total Liabilities (excluding Total Equity) 938.77 153.33 36.01 12.74 1.17 0.06 0.05 378.98 4.81 135.15
8. Investments (excluding Investments
made in subsidiaries) 356.64 – – – – – – – – –
9. Turnover 2673.30 1192.51 308.77 34.15 2.21 0.06 0.06 3152.29 11.43 263.77
ITC Limited
10. Profit / (Loss) before tax 463.79 44.19 16.65 6.60 0.27 0.01 … 978.43 6.15 48.83
11. Provision for tax (110.41) (12.35) (1.90) – (0.08) … … (298.40) (0.35) (7.45)
12. Profit / (Loss) after tax 353.38 31.84 14.75 6.60 0.19 0.01 … 680.03 5.80 41.38
13. Proposed Dividend@ 149.60 – – – – – – 650.16 – –
14. % of shareholding 100.00 100.00 100.00 100.00 100.00 100.00 100.00 59.00 100.00 100.00
@ includes dividend paid during the year

Notes:
i) Turnover includes Other Income and Other Operating Revenue. Profit / (Loss) figures do not include Other Comprehensive Income.
ii) ITC Infotech Malaysia SDN. BHD., a subsidiary of ITC Infotech India Limited, was incorporated during the year on 3rd February, 2023 and is yet to commence commercial operations.
229
There have been no transactions in the company during the period ended 31st March, 2023 and hence the financial statements have not been prepared by the said subsidiary.
230
Part A: Subsidiaries (Contd.) (` in Crores)
Name of the Subsidiary Technico Technico Technico Srinivasa Fortune Landbase Bay Islands WelcomHotels Russell Greenacre
Technologies Asia Horticultural Resorts Park Hotels India Limited Hotels Lanka Credit Holdings
ITC Limited
Inc. Holdings Pty (Kunming) Limited Limited Limited (Private) Limited Limited
Limited Co. Limited Limited

subsidiary was acquired 17-Aug-2007 17-Aug-2007 17-Aug-2007 06-Feb-1995 06-Mar-1996 09-Sep-2000 08-Mar-1999 04-May-2012 26-Sep-1997 09-Nov-1994
2. Financial Year ending on 31-Mar-2023 31-Mar-2023 31-Mar-2023 31-Mar-2023 31-Mar-2023 31-Mar-2023 31-Mar-2023 31-Mar-2023 31-Mar-2023 31-Mar-2023
Reporting Currency Canadian Australian Chinese Yuan Indian Rupee Indian Rupee Indian Rupee Indian Rupee Sri Lankan Indian Rupee Indian Rupee
Dollar Dollar Renminbi Rupee
3.

of the financial year 60.6675 55.0250 11.9478 – – – – 0.2498 – –
4. Share Capital 6.91 20.27 22.72 24.00 0.45 317.00 0.12 1957.53 646.48 42.06
5. Reserves & Surplus (4.62) (14.93) 3.61 71.75 23.98 (63.94) 21.68 6.53 379.40 12.63
6. Total Assets 2.45 5.34 26.81 117.03 38.71 298.40 22.37 2051.08 1033.83 70.16
7. Total Liabilities (excluding Total Equity) 0.16 – 0.48 21.28 14.28 45.34 0.57 87.02 7.95 15.47
made in subsidiaries) – – – 41.09 11.35 1.75 3.61 – 919.65 35.34
9. Turnover 1.00 – 6.10 72.46 44.35 37.21 2.75 8.85 48.61 8.30
10. Profit / (Loss) before tax 0.30 – 1.99 9.33 7.84 9.68 2.56 7.90 43.68 2.07
11. Provision for tax – – – (1.79) (2.50) – (0.64) – (5.38) (0.08)
12. Profit / (Loss) after tax 0.30 – 1.99 7.54 5.34 9.68 1.92 7.90 38.30 1.99
13. Proposed Dividend@ – – – – 0.56 – 0.10 – 18.75 –
14. % of shareholding 100.00 100.00 100.00 68.00 100.00 100.00 100.00 100.00 100.00 100.00

Notes:
i) Turnover includes Other Income and Other Operating Revenue. Profit / (Loss) figures do not include Other Comprehensive Income.
ii) WelcomHotels Lanka (Private) Limited is yet to commence commercial operations.
Part A: Subsidiaries (Contd.) (` in Crores)
Name of the Subsidiary Wimco Limited Gold Flake ITC Integrated MRR Trading North East Prag Agro Farm Pavan Poplar ITC IndiVision ITC Fibre
Corporation Business & Investment Nutrients Limited Limited Limited Innovations
Limited Services Company Private Limited Limited
Limited ** Limited

subsidiary was acquired 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
2. Financial Year ending on 31-Mar-2023 31-Mar-2023 31-Mar-2023 31-Mar-2023 31-Mar-2023 31-Mar-2023 31-Mar-2023 31-Mar-2023 31-Mar-2023
Reporting Currency Indian Rupee Indian Rupee Indian Rupee Indian Rupee Indian Rupee Indian Rupee Indian Rupee Indian Rupee Indian Rupee
3.
of the financial year – – – – – – – – –
4. Share Capital 18.51 16.00 4.50 0.05 73.00 1.28 5.51 120.00 0.01
5. Reserves & Surplus (21.63) 14.53 1.02 (0.03) 39.03 (0.35) (5.21) (4.23) (0.04)
6. Total Assets 7.45 32.49 5.88 0.06 117.30 0.98 0.33 335.00 0.09
7. Total Liabilities (excluding Total Equity) 10.57 1.96 0.36 0.04 5.27 0.05 0.03 219.23 0.12
made in subsidiaries) 1.00 11.77 0.85 – 20.78 – – 10.76 –
9. Turnover 11.56 19.97 0.65 0.07 161.59 0.11 0.12 0.01 –
10. Profit / (Loss) before tax 0.16 18.58 0.06 … 16.22 (0.05) (0.03) (1.80) (0.04)
ITC Limited
11. Provision for tax – (0.16) (0.02) … (0.24) … … 0.12 …
12. Profit / (Loss) after tax 0.16 18.42 0.04 … 15.98 (0.05) (0.03) (1.68) (0.04)
13. Proposed Dividend@ – 18.08 – – 9.56 – – – –
14. % of shareholding 100.00 100.00 100.00 100.00 76.00 100.00 100.00 100.00 100.00
** formerly known as ITC Investments & Holdings Limited

Notes:

i) ITC IndiVision Limited and ITC Fibre Innovations Limited are yet to commence commercial operations.
ii) No subsidiary was liquidated or sold during the year.
231
iii) Turnover includes Other Income and Other Operating Revenue. Profit / (Loss) figures do not include Other Comprehensive Income.
Part B : Associates and Joint Ventures
232
Statement pursuant to Section 129 (3) of the Companies Act, 2013 related to Associate companies and Joint Ventures
Name of Associates / Joint Ventures Espirit Logix ITC Maharaja International Russell Gujarat Divya ATC Limited Antrang Delectable Mother Sparsh
Hotels Developers Essentra Heritage Travel Investments Hotels Management Finance Technologies Baby Care
Private Private Limited Resorts House Limited Limited Limited Limited Private Private
Limited Limited# Limited Limited Limited Limited
ITC Limited
1. Latest audited Balance Sheet Date 31-Mar-2023 31-Mar-2023 31-Mar-2023 31-Mar-2023 31-Mar-2023 31-Mar-2023 31-Mar-2023 31-Mar-2023 31-Mar-2023 31-Mar-2023 31-Mar-2023 31-Mar-2023
2. Date on which the Associate or Joint
Venture was associated or acquired 24-Sep-2010 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
3. Shares of Associate / Joint Venture
held by the Company on the year end
Number 4,65,09,200 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 7,859^ 3,080**
Amount of Investment in Associate /Joint
Venture (` in Crores) 46.17 – 109.01 – 72.88 31.28 19.55 7.71 7.73 5.05 6.49 31.72
Extent of Holding % 26.00 27.90 50.00 50.00 48.96 25.43 45.78 33.33 47.50 33.33 33.42@ 22.00@
4. Description of how there is significant
Joint Venture Joint Venture Joint Venture Joint Venture Associate Associate Associate Associate Associate Associate Associate Associate

influence
5. Reason why the Associate / Joint
Consolidated Consolidated Consolidated Consolidated Consolidated Consolidated Consolidated Consolidated Consolidated Consolidated Consolidated Consolidated
Venture is not consolidated
6. Net worth attributable to Shareholding
as per latest audited Balance Sheet
(` in Crores) 46.17 1.42$ 108.61 -$ 60.31 31.89 18.39 6.63 7.52 4.96 0.88 0.08**
7. Profit / (Loss) for the year
(` in Crores) (0.01) 200.30 64.76 0.51 28.39 3.31 4.25 0.42 1.26 0.32 (1.81) (22.25)
i. Considered in Consolidation
(` in Crores) … 1.42$ 32.38 -$ 13.90 0.84 1.95 0.14 0.60 0.11 (0.55) (1.74)
ii. Not considered in Consolidation
(` in Crores) (0.01) 198.88 32.38 0.51 14.49 2.47 2.30 0.28 0.66 0.21 (1.26) (20.51)
$ Net worth attributable to Shareholding and Share of profit / (loss) has been considered to the extent permitted under Ind AS 28 - Investments in Associates and Joint Ventures.
# Financial Statements are as certified by the management of Logix Developers Private Limited (Logix). During the year, the Company has impaired the carrying value of investment in Logix. [Refer Note 28 (ix)
to the Consolidated Financial Statements].
* Comprises 55,650 Equity Shares fully paid up and 1,39,125 Equity Shares partly paid up (Refer Note 4 to the Consolidated Financial Statements).
^ Comprises 100 Equity Shares fully paid up (investment ` 0.09 Crore) and 7,759 Compulsorily Convertible Cumulative Preference Shares (CCCPS) fully paid up (investment ` 6.40 Crores) (Refer Note 4 to the
Consolidated Financial Statements).
** Comprises 100 Equity Shares fully paid up (investment ` 0.90 Crore) and 2,980 CCCPS fully paid up (investment ` 30.82 Crores) (Refer Note 4 to the Consolidated Financial Statements). Net worth attributable
to the Company’s shareholding includes proportionate share of CCCPS classified as Borrowings in terms of the Ind AS requirements in the financial statements of the investee company.
@ on a fully diluted basis.
Notes:
i) Espirit Hotels Private Limited (Espirit) did not commence commercial operations during the year. The Company on 7th April, 2023 divested its entire shareholding, i.e., 26.00% of the paid-up share capital, held
in Espirit, consequent to which that company ceased to be a joint venture of the Company with effect from the said date [Refer Note 28 (viii) to the Consolidated Financial Statements].
ii) Logix Developers Private Limited is yet to commence commercial operations.
iii) No Associate or Joint Venture was liquidated or sold during the year.
R. K. SINGHI S. DUTTA S. PURI

Kolkata, May 18, 2023 Company Secretary Director & Chief Financial Officer Chairman & Managing Director
Consolidated
Financial Statements
Balance Sheet 234
Statement of Profit and Loss 235
Statement of Changes in Equity 236
Cash Flow Statement 238
Notes to the Consolidated

Financial Statements 240
Independent Auditor’s Report 313

Consolidated Balance Sheet as at 31st March, 2023
Note As at As at
ASSETS
Non-current assets
(a) Property, Plant and Equipment 3A 21117.08 20207.43
(b) Capital work-in-progress 3B 2984.71 3198.45
(c) Investment Property 3C 352.26 364.20
(d) Goodwill 3D 779.73 779.73
(e) Other Intangible assets 3E 2727.32 2013.10
(f) Intangible assets under development 3F 18.59 27.09
(g) Right of Use Assets 3G 874.88 867.13
(h) Investment accounted for using the equity method 4 337.59 269.24
29192.16 27726.37
(i) Financial Assets
(i) Investments 4 11844.57 12307.49
(ii) Loans 5 5.48 6.61
(iii) Others 6 3739.75 15589.80 1589.58 13903.68
(j) Deferred tax assets (Net) 7 52.02 63.53
(k) Income Tax Assets (Net) 21A 66.16 42.30
(l) Other non-current assets 8 1311.95 46212.09 1291.22 43027.10
Current assets
(a) Inventories 9 11771.16 10864.15
(b) Biological assets other than bearer plants 10 142.97 109.44
(c) Financial Assets
(i) Investments 11 17232.86 12264.28
(ii) Trade receivables 12 2956.17 2461.90
(iii) Cash and cash equivalents 13 463.35 271.37
(iv) Other Bank Balances 14 4416.84 4383.05
(v) Loans 5 7.12 6.77
(vi) Others 6 1118.67 26195.01 2565.41 21952.78
(d) Other current assets 8 1561.75 39670.89 1306.08 34232.45
TOTAL ASSETS 85882.98 77259.55
EQUITY AND LIABILITIES
Equity
(a) Equity Share capital 15 1242.80 1232.33
(b) Other Equity 67912.46 61223.24
Attributable to owners of the parent 69155.26 62455.57
Non-controlling interests 383.53 69538.79 366.30 62821.87
Liabilities
(ii) Lease liabilities 17A 213.37 193.67
(iii) Other financial liabilities 17B 416.87 633.73 144.50 343.02
(b) Provisions 18 259.21 221.05
(c) Deferred tax liabilities (Net) 7 1629.00 1673.47
(d) Other non-current liabilities 19 82.84 2604.78 36.43 2273.97
Current liabilities
(i) Borrowings 20 35.32 0.74
(ii) Trade payables
Total outstanding dues of micro enterprises and
small enterprises 137.88 101.42
Total outstanding dues of creditors other than
micro enterprises and small enterprises 4521.11 4658.99 4315.84 4417.26
(iii) Lease liabilities 17A 53.86 50.18
(iv) Other financial liabilities 17B 2407.71 1812.85
(b) Other current liabilities 19 5571.35 5116.03
(c) Provisions 18 100.56 79.56
(d) Current Tax Liabilities (Net) 21B 911.62 13739.41 687.09 12163.71
TOTAL EQUITY AND LIABILITIES 85882.98 77259.55

Arvind Sethi

Consolidated Statement of Profit and Loss for the year ended 31st March, 2023
I Revenue From Operations 22A,22B 76518.21 65204.96
II Other Income 23 1980.49 1836.35
III Total Income (I + II) 78498.70 67041.31
IV EXPENSES
Cost of materials consumed 20275.99 16399.94
Purchases of Stock-in-Trade 9088.37 10671.13
Changes in inventories of finished goods, Stock-in-Trade,
work-in-progress and intermediates (358.59) (686.00)
Excise duty 5581.36 4536.87
Employee benefits expense 24 5736.22 4890.55
Finance costs 25 43.20 39.36
Other expenses 26 10529.93 8734.06
Total expenses (IV) 52705.49 46318.32
V Share of profit / (loss) of Associates and Joint Ventures 49.04 17.48
VI Profit before exceptional items and tax (III - IV + V) 25842.25 20740.47
VII Exceptional Items 28(i) 72.87 –
VIII Profit before tax (VI + VII) 25915.12 20740.47
IX Tax expense:
Current Tax 27 6450.90 5306.58
Deferred Tax 27 (12.50) (69.24)
X Profit for the year (VIII - IX) 19476.72 15503.13
A (i) Items that will not be reclassified to profit or loss:
– Remeasurements of the defined benefit plans 28(vi) (24.06) 32.06
– Equity instruments through other comprehensive income 108.65 632.57
– Effective portion of gains / (losses) on designated portion of
hedging instruments in a cash flow hedge 21.22 (11.90)
– Share of OCI in Associates and Joint Ventures 3.94 3.40
(ii) Income tax relating to items that will not be reclassified to
B (i) Items that will be reclassified to profit or loss:
– Exchange differences in translating the financial statements
of foreign operations 46.12 (584.18)
– Debt instruments through other comprehensive income (34.76) 3.71
– Effective portion of gains / (losses) on designated portion of
hedging instruments in a cash flow hedge (52.41) 14.78
(ii) Income tax relating to items that will be reclassified to
XI Other Comprehensive Income [A (i + ii) + B (i + ii)] 91.02 80.67
XII Total Comprehensive Income for the year (X + XI) 19567.74 15583.80
Profit for the year
Attributable to:
Owners of the parent 19191.66 15242.66
Non-controlling interests 285.06 260.47
Total Comprehensive Income for the year
Attributable to:
Owners of the parent 19283.42 15323.11
Non-controlling interests 284.32 260.69
XIII Earnings per equity share (Face Value ` 1.00 each): 28(ii)
(1) Basic (in `) 15.50 12.37
(2) Diluted (in `) 15.46 12.37

Arvind Sethi

236
Consolidated Statement of changes in equity for the year ended 31st March, 2023
A. Equity Share Capital (` in Crores)
Balance at the beginning Changes in equity share Balance at the end of the
of the reporting year capital during the year reporting year
ITC Limited
B. Other Equity (` in Crores)
Reserves and Surplus Items of other comprehensive income Attributable Non-

to owners controlling
Special Exchange of the interests
Reserve differences parent
under Employees Debt Equity on translating Total
Section Housing Share Instruments Instruments Effective the financial
Capital 45-IC of the Reserve Options Capital through Other through Other portion of statements
Capital Securities Reserve on RBI Act, under Nepal Subsidy Outstanding Redemption Contingency General Retained Comprehensive Comprehensive Cash Flow of foreign
Reserve Premium Consolidation 1934 labour laws Reserve Account Reserve Reserve Reserve Earnings Income Income Hedges operations

Balance as at 1st April, 2022 5.46 9959.31 72.67 160.18 81.66 0.23 1316.33 0.22 363.05 17672.57 31292.03 2.78 891.72 14.33 (609.30) 61223.24 366.30 61589.54
Profit for the year – – – – – – – – – – 19191.66 – – – – 19191.66 285.06 19476.72
Other Comprehensive Income (net of tax) – – – – – – – – – – (17.75) (26.01) 112.74 (23.34) 46.12 91.76 (0.74) 91.02
Total Comprehensive Income for the year – – – – – – – – – – 19173.91 (26.01) 112.74 (23.34) 46.12 19283.42 284.32 19567.74
Issue of equity shares under ITC Employee Stock
Option Schemes – 2466.92 – – – – – – – – – – – – – 2466.92 – 2466.92
Dividend
– Final Dividend (2021-22 - ` 6.25 per share) – – – – – – – – – – (7702.03) – – – – (7702.03) (267.09) (7969.12)
– Interim Dividend (2022-23 - ` 6.00 per share) – – – – – – – – – – (7448.41) – – – – (7448.41) – (7448.41)
Dividend distribution tax refund received – – – – – – – – – – 20.43 – – – – 20.43 – 20.43
Transfer from Employee Housing Reserve – – – – (0.21) – – – – – 0.21 – – – – – – –
Transfer from retained earnings – – – 7.66 – – – 13.68 – – (21.34) – – – – – – –
Recognition of share based payment – – – – – – 61.11 – – – – – – – – 61.11 – 61.11
Transfer from Share Option Outstanding account on
exercise and lapse – 610.56 – – – – (635.99) – – – 25.43 – – – – – – –
items (net of tax) – – – – – – – – – – – – – 7.78 – 7.78 – 7.78
Balance as at 31st March, 2023 5.46 13036.79 72.67 167.84 81.45 0.23 741.45 13.90 363.05 17672.57 35340.23 (23.23) 1004.46 (1.23) (563.18) 67912.46 383.53 68295.99
Balance as at 1st April, 2021 5.46 9582.81 72.67 153.49 94.26 0.23 1706.52 0.22 363.05 17672.57 29229.31 – 256.06 4.93 (25.12) 59116.46 346.81 59463.27
Profit for the year – – – – – – – – – – 15242.66 – – – – 15242.66 260.47 15503.13
Other Comprehensive Income (net of tax) – – – – – – – – – – 24.03 2.78 635.66 2.16 (584.18) 80.45 0.22 80.67
Total Comprehensive Income for the year – – – – – – – – – – 15266.69 2.78 635.66 2.16 (584.18) 15323.11 260.69 15583.80
Consolidated Statement of changes in equity for the year ended 31st March, 2023
B. Other Equity (Contd.) (` in Crores)
Reserves and Surplus Items of other comprehensive income Attributable Non-

to owners controlling
Special Exchange of the interests
Reserve differences parent
under Employees Debt Equity on translating Total
Section Housing Share Instruments Instruments Effective the financial
Capital 45-IC of the Reserve Options Capital through Other through Other portion of statements
Capital Securities Reserve on RBI Act, under Nepal Subsidy Outstanding Redemption Contingency General Retained Comprehensive Comprehensive Cash Flow of foreign
Reserve Premium Consolidation 1934 labour laws Reserve Account Reserve Reserve Reserve Earnings Income Income Hedges operations
Issue of equity shares under ITC Employee Stock
Option Schemes – 290.38 – – – – – – – – – – – – – 290.38 – 290.38
Dividend
– Final Dividend (2020-21 - ` 5.75 per share) – – – – – – – – – – (7077.59) – – – – (7077.59) (241.25) (7318.84)
– Interim Dividend (2021-22 - ` 5.25 per share) – – – – – – – – – – (6469.48) – – – – (6469.48) – (6469.48)
Transfer from Employee Housing Reserve – – – – (12.60) – – – – – 12.60 – – – – – – –
Transfer from retained earnings – – – 6.69 – – – – – – (6.69) – – – – – – –
Recognition of share based payment – – – – – – 33.51 – – – – – – – – 33.51 – 33.51
Transfer from Share Option Outstanding account
on exercise and lapse – 86.12 – – – – (423.70) – – – 337.58 – – – – – – –
items (net of tax) – – – – – – – – – – – – – 7.24 – 7.24 – 7.24
Effect of capital reduction of subsidiary – – – – – … – – – – (0.39) – – – – (0.39) 0.05 (0.34)
Balance as at 31st March, 2022 5.46 9959.31 72.67 160.18 81.66 0.23 1316.33 0.22 363.05 17672.57 31292.03 2.78 891.72 14.33 (609.30) 61223.24 366.30 61589.54
The Board of Directors of the Company has recommended Special Dividend of ` 2.75 per Ordinary Share in addition to the Final Dividend of ` 6.75 per Ordinary Share for the financial year ended 31st March, 2023 (previous year - ` 6.25 per Ordinary Share) to be paid on fully paid Equity Shares
amounting to ` 11806.61 Crores. The said Final and Special Dividend is subject to the approval of the shareholders at the Annual General Meeting and has not been included as a liability in these financial statements.
Together with the Interim Dividend of ` 6.00 per Ordinary Share (previous year - ` 5.25 per Ordinary Share) paid on 3rd March, 2023, the total Equity Dividend for the financial year ended 31st March, 2023 is ` 15.50 per Ordinary Share (previous year - ` 11.50 per Ordinary Share).
Capital Reserve and Capital Reserve on Consolidation: This Reserve represents the difference between value of the net assets transferred General Reserve: This Reserve has been created by an appropriation from one component of equity (generally retained earnings) to another,
to the Group in the course of business combinations and the consideration paid for such combinations. not being an item of Other Comprehensive Income. The same can be utilized in accordance with the provisions of the Companies Act, 2013.
Securities Premium: This Reserve represents the premium on issue of shares and can be utilised in accordance with the provisions of the Retained Earnings: This Reserve represents the cumulative profits of the Group and effects of remeasurement of defined benefit obligations.
Companies Act, 2013. This Reserve can be utilized in accordance with the provisions of the Companies Act, 2013.
Special Reserve under Section 45-IC of the RBI Act, 1934: This Reserve represents profits transferred before declaration of dividend by Debt Instruments through Other Comprehensive Income: This Reserve represents the cumulative gains (net of losses) arising on revaluation
companies of the Group which are registered as NBFCs with the Reserve Bank of India (RBI). of Debt Instruments measured at Fair Value through Other Comprehensive Income, net of amounts reclassified, if any, to profit or loss when those
Employees Housing Reserve under Nepal labour laws: This Reserve represents the amounts set aside for providing employees’ housing as instruments are disposed of.
per the provisions of the Nepal Labour Act, 2048. The said Act has since been repealed with effect from 4th September, 2017, consequent to the Equity Instruments through Other Comprehensive Income: This Reserve represents the cumulative gains (net of losses) arising on revaluation
introduction of the new Labour Act, 2074, which does not require creation of similar Reserve. of Equity Instruments measured at Fair Value through Other Comprehensive Income, net of amounts reclassified, if any, to Retained Earnings
ITC Limited
when those instruments are disposed of.
Subsidy Reserve: This Reserve represents subsidies received from government authorities for capital investment and amounts taken over by
Effective portion of Cash Flow Hedges: This Reserve represents the cumulative effective portion of changes in Fair Value of hedging instrument
the Group consequent to business combinations.
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
Share Options Outstanding Account: This Reserve relates to stock options granted by the Company to employees under ITC Employee Stock accordance with the Group’s accounting policy.
Option Schemes. This Reserve is transferred to Securities Premium or Retained Earnings on exercise or lapse of vested options.
Exchange differences on translating the financial statements of foreign operations: This Reserve contains (a) accumulated balance of
Capital Redemption Reserve: This Reserve has been transferred to the Group in the course of business combinations and can be utilized in foreign exchange differences from translation of the financial statements of the Group’s foreign operations arising at the time of consolidation
accordance with the provisions of the Companies Act, 2013. of such entities and (b) accumulated foreign exchange differences arising on monetary items that, in substance, form part of the Group’s net
Contingency Reserve: This Reserve has been created out of Retained Earnings, as a matter of prudence, to take care of any unforeseen adverse investment in a foreign operation. Such foreign exchange differences are recognised in Other Comprehensive Income. Exchange differences
developments in pending legal disputes. previously accumulated in this Reserve are reclassified to profit or loss on disposal of the foreign operation.


Arvind Sethi
237
Consolidated Cash Flow Statement for the year ended 31st March, 2023
A. Cash Flow from Operating Activities
PROFIT BEFORE TAX 25915.12 20740.47
ADJUSTMENTS FOR:
Share based payments to employees 60.41 33.17
Finance costs 43.20 39.36
Interest Income (1534.00) (1082.63)
Dividend Income (0.02) (0.01)
(Gain) / Loss on sale of property, plant and equipment,
lease termination - Net 4.40 (56.22)
Doubtful and bad debts 5.96 14.98
Share of (profit) / loss of associates and joint ventures (49.04) (17.48)
Net gain arising on financial instruments measured at amortised cost /
mandatorily measured at fair value through profit or loss (393.97) (538.99)
Foreign currency translations and transactions - Net 31.37 (8.98)
Impairment of investment in joint venture 1.42 (20.51) – 116.54
OPERATING PROFIT BEFORE WORKING CAPITAL CHANGES 25894.61 20857.01
ADJUSTMENTS FOR:
Trade receivables, advances and other assets (884.21) (732.29)
Inventories and biological assets other than bearer plants (940.54) (466.37)
Trade payables, other liabilities and provisions 1057.93 (766.82) 1099.11 (99.55)
CASH GENERATED FROM OPERATIONS 25127.79 20757.46
Income tax paid (6250.24) (4981.95)
NET CASH FROM OPERATING ACTIVITIES 18877.55 15775.51
B. Cash Flow from Investing Activities

Purchase of property, plant and equipment, intangibles, ROU asset, etc. (2742.99) (2141.64)
Sale of property, plant and equipment 49.17 133.10
Purchase of current investments (78483.49) (64874.32)
Sale / redemption of current investments 73172.80 68260.67
Investment in associate (1.88) (1.87)
Purchase of non-current investments (2448.96) (4902.02)
Sale / redemption of non-current investments 4057.60 2731.24
Payment towards contingent purchase consideration (63.75) (71.25)
Advance received towards divestment of shares held in joint venture
[Refer Note 28 (viii)] 56.00 –
Dividend from associate and joint venture 18.56 16.06
Dividend from others 0.02 0.01
Interest received 1323.74 1034.55
Investment in bank deposits (original maturity more than 3 months) (8904.33) (4531.12)
Redemption / maturity of bank deposits (original maturity more than
3 months) 6754.44 4546.49
Investment in deposit with housing finance company (3520.00) (3011.37)
Redemption / maturity of deposit with housing finance company 5000.00 578.82
Loans given (8.56) (13.16)
Loans realised 9.34 7.32
NET CASH USED IN INVESTING ACTIVITIES (5732.29) (2238.49)

Consolidated Cash Flow Statement for the year ended 31st March, 2023
C. Cash Flow from Financing Activities
Proceeds from issue of share capital 2477.39 291.82
Repayment of non-current borrowings (0.73) (0.35)
Payment towards reduction of capital by a subsidiary – (0.34)
Principal payment of lease liabilities (59.11) (59.02)
Interest paid (41.42) (39.55)
Net increase in statutory restricted accounts balances 14.94 15.26
Dividend paid (15417.53) (13788.32)
Dividend distribution tax refund received 20.43 –
NET CASH USED IN FINANCING ACTIVITIES (13006.03) (13580.50)
NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS 139.23 (43.48)
OPENING CASH AND CASH EQUIVALENTS 266.68 310.16
CLOSING CASH AND CASH EQUIVALENTS 405.91 266.68
Notes:
1. The above Cash Flow Statement has been prepared under the
“Indirect Method” as set out in Ind AS - 7 “Statement of Cash Flows”.
2. CASH AND CASH EQUIVALENTS:
Cash and cash equivalents as above 405.91 266.68
Unrealised gain / (loss) on foreign currency cash and cash equivalents 23.48 4.69
Cash credit facilities (Note 20) 33.96 –
Cash and cash equivalents (Note 13) 463.35 271.37
3. Net Cash Flow from Operating Activities includes an amount of
` 341.23 Crores (2022- ` 349.30 Crores) spent towards Corporate
Social Responsibility.

Arvind Sethi

Notes to the Consolidated Financial Statements
1. Significant Accounting Policies
Statement of Compliance together with the share of the total comprehensive income
These financial statements have been prepared in of joint ventures and associates.
accordance with Indian Accounting Standards (Ind AS) Subsidiaries are entities controlled by the Group. Associates
notified under Section 133 of the Companies Act, 2013. are entities over which the Group exercise significant
The financial statements have also been prepared in influence but does not control. An entity / arrangement in
accordance with the relevant presentation requirements of which the Group has the ability to exercise control jointly
the Companies Act, 2013. The Group adopted Ind AS from with one or more uncontrolled entities may be a joint venture
1st April, 2016. (“JV”) or a joint operation (“JO”). Unlike in a JV where parties
have proportionate interests in the assets and liabilities of
Basis of Preparation
the JV entity, parties have rights to and obligations towards
The financial statements are prepared in accordance with specified assets and liabilities in a JO.
the historical cost convention, except for certain items that
Control, significant influence and joint control is assessed
are measured at fair values, as explained in the accounting
annually with reference to the voting power (usually arising
policies.
from equity shareholdings and potential voting rights) and
Fair Value is the price that would be received to sell an other rights (usually contractual) enjoyed by the Group in
asset or paid to transfer a liability in an orderly transaction its capacity as an investor that provides it the power and
between market participants at the measurement date, consequential ability to direct the investee’s activities and
regardless of whether that price is directly observable or significantly affect the Group’s returns from its investment.
estimated using another valuation technique. In estimating Such assessment requires the exercise of judgement and
the fair value of an asset or a liability, the Group takes into is disclosed by way of a note to the Financial Statements.
account the characteristics of the asset or liability if market The Group is considered not to be in control of entities
participants would take those characteristics into account where it is unclear as to whether it enjoys such power over
when pricing the asset or liability at the measurement date. the investee.
Fair value for measurement and / or disclosure purposes in
these consolidated financial statements is determined on The assets, liabilities, income and expenses of subsidiaries
such a basis, except for share-based payment transactions are aggregated and consolidated, line by line, from the date
that are within the scope of Ind AS 102 – Share-based control is acquired by any Group entity to the date it ceases.
Payment, leasing transactions that are within the scope of Profit or loss and each component of other comprehensive
Ind AS 116 – Leases, and measurements that have some income are attributed to the Group as owners and to
similarities to fair value but are not fair value, such as net the non-controlling interests. The Group presents the
realisable value in Ind AS 2 – Inventories or value in use in non-controlling interests in the Balance Sheet within equity,
Ind AS 36 – Impairment of Assets. separately from the equity of the Group as owners. The
excess of the Group’s investment in a subsidiary over
The preparation of financial statements in conformity
its share in the net worth of such subsidiary on the date
with Ind AS requires management to make judgements,
control is acquired is treated as goodwill while a deficit is
estimates and assumptions that affect the application of the
considered as a capital reserve in the CFS. In case of JO,
accounting policies and the reported amounts of assets and
Group’s share of assets, liabilities, income and expenses
liabilities, the disclosure of contingent assets and liabilities
are consolidated. On disposal of the subsidiary, attributable
at the date of the financial statements, and the reported
amount on goodwill is included in the determination of the
amounts of revenues and expenses during the year. Actual
profit or loss and recognised in the Statement of Profit and
results could differ from those estimates. The estimates
Loss. Impairment loss, if any, to the extent the carrying
and underlying assumptions are reviewed on an ongoing
amount exceeds the recoverable amount is charged off
basis. Revisions to accounting estimates are recognised
to the Statement of Profit and Loss as it arises and is not
in the period in which the estimate is revised if the revision
reversed. For impairment testing, goodwill is allocated to
affects only that period; they are recognised in the period
Cash Generating Unit (CGU) or a group of CGUs to which it
of the revision and future periods if the revision affects both
relates, which is not larger than an operating segment, and
is monitored for internal management purposes.
Basis of Consolidation An investment in an associate or a JV is initially recognised
The Consolidated Financial Statements (CFS) include the at cost on the date of the investment, and inclusive of
financial statements of the Company and its subsidiaries any goodwill / capital reserve embedded in the cost, in the

Balance Sheet. The proportionate share of the Group in The estimated useful lives of property, plant and equipment
the net profits / losses as also in the other comprehensive of the Group are as follows:
income is recognised in the Statement of Profit and Loss
Buildings 30-60 Years
and the carrying value of the investment is adjusted by a
like amount (referred as ‘equity method’). Leasehold Improvement Shorter of lease period or
estimated useful lives
All intragroup assets and liabilities, equity, income, expenses
and cash flows relating to transactions between members Plant and Equipment 3-25 Years
of the Group are eliminated in full on consolidation. Furniture and Fixtures 8-10 Years
Operating Cycle Vehicles 8-10 Years
All assets and liabilities have been classified as current or Office Equipment 5 Years
non-current as per the Group’s normal operating cycle and
other criteria set out in the Schedule III to the Companies Assets held under finance leases are depreciated over their
Act, 2013 and Ind AS 1 – Presentation of Financial expected useful lives on the same basis as owned assets
Statements based on the nature of products and the time or, where shorter, the term of the relevant lease.
between the acquisition of assets for processing and their Property, plant and equipment’s residual values and useful
realisation in cash and cash equivalents. lives are reviewed at each Balance Sheet date and changes,
if any, are treated as changes in accounting estimate.
Property, Plant and Equipment – Tangible Assets
Property, plant and equipment are stated at cost of Goodwill on Consolidation
acquisition or construction less accumulated depreciation Goodwill arising on consolidation is stated at cost less
and impairment, if any. For this purpose, cost includes impairment losses, where applicable. On disposal of a
deemed cost which represents the carrying value of subsidiary, attributable amount of goodwill is included in
property, plant and equipment recognised as at 1st April, the determination of the profit or loss recognised in the
2015 measured as per the previous Generally Accepted Statement of Profit and Loss. On acquisition of an associate
Accounting Principles (GAAP). or joint venture, the goodwill / capital reserve arising from
Cost is inclusive of inward freight, duties and taxes and such acquisition is included in the carrying amount of the
incidental expenses related to acquisition. In respect investment and also disclosed separately.
of major projects involving construction, related Impairment loss, if any, to the extent the carrying amount
pre-operational expenses form part of the value of assets exceed the recoverable amount is charged off to the
capitalised. Expenses capitalised also include applicable Statement of Profit and Loss as it arises and is not
borrowing costs for qualifying assets, if any. All upgradation / reversed. For impairment testing, goodwill is allocated to
enhancements are charged off as revenue expenditure Cash Generating Unit (CGU) or group of CGUs to which it
unless they bring similar significant additional benefits. relates, which is not larger than an operating segment, and
An item of property, plant and equipment is derecognised is monitored for internal management purposes.
upon disposal or when no future economic benefits Intangible Assets
are expected to arise from the continued use of asset.
Intangible Assets that the Group controls and from which
Any gain or loss arising on the disposal or retirement of
it expects future economic benefits, are capitalised upon
an item of property, plant and equipment is determined as
acquisition and measured initially:
the difference between the sales proceeds and the carrying
amount of the asset and is recognised in the Statement of a. for assets acquired in a business combination, at fair
Profit and Loss. value on the date of acquisition;
Depreciation of these assets commences when the assets b. for separately acquired assets, at cost comprising
are ready for their intended use which is generally on the purchase price (including import duties and
commissioning. Items of property, plant and equipment non-refundable taxes) and directly attributable costs to
are depreciated in a manner that amortizes the cost prepare the asset for its intended use.
(or other amount substituted for cost) of the assets after Internally generated assets for which the cost is clearly
commissioning, less its residual value, over their useful identifiable are capitalised at cost. Research expenditure is
lives as specified in Schedule II of the Companies Act, 2013 recognised as an expense when it is incurred. Development
on a straight line basis. Land is not depreciated. costs are capitalised only after the technical and commercial

feasibility of the asset for sale or use has been established. recognised no longer exist or have decreased. Such
Thereafter, all directly attributable expenditure incurred to reversals are recognised as an increase in carrying
prepare the asset for its intended use are recognised as the amounts of assets to the extent that it does not exceed the
cost of such assets. Internally generated brands, websites carrying amounts that would have been determined (net of
and customer lists are not recognised as intangible assets. amortization or depreciation) had no impairment loss been
The carrying value of intangible assets includes deemed recognised in previous years.
cost which represents the carrying value of intangible Investment Property
assets recognised as at 1st April, 2015 measured as per Properties that are held for long-term rental yields and / or
the previous GAAP. for capital appreciation are classified as investment
The useful life of an intangible asset is considered finite properties. Investment properties are stated at cost of
where the rights to such assets are limited to a specified acquisition or construction less accumulated depreciation
period of time by contract or law (e.g. patents, licences, and impairment, if any. Depreciation is recognised using
trademarks, franchise and servicing rights) or the likelihood the straight line method so as to amortize the cost of
of technical, technological obsolescence (e.g. computer investment properties over their useful lives as specified in
software, design, prototypes) or commercial obsolescence Schedule II of the Companies Act, 2013. Freehold land and
(e.g. lesser known brands are those to which adequate properties under construction are not depreciated.
marketing support may not be provided). If, there are no Transfers to, or from, investment properties are made at
such limitations, the useful life is taken to be indefinite. the carrying amount when and only when there is a change
Intangible assets that have finite lives are amortized over in use.
their estimated useful lives by the straight line method An item of investment property is derecognised upon
unless it is practical to reliably determine the pattern of disposal or when no future economic benefits are expected
benefits arising from the asset. An intangible asset with an to arise from the continued use of asset. Any gain or loss
indefinite useful life is not amortized. arising on the disposal or retirement of an item of investment
All intangible assets are tested for impairment. Amortization property is determined as the difference between the sales
expenses and impairment losses and reversal of impairment proceeds and the carrying amount of the property and is
losses are taken to the Statement of Profit and Loss. Thus, recognised in the Statement of Profit and Loss.
after initial recognition, an intangible asset is carried at its Income received from investment property is recognised
cost less accumulated amortization and / or impairment in the Statement of Profit and Loss on a straight line basis
losses. over the term of the lease.
The useful lives of intangible assets are reviewed annually to Inventories
determine if a reset of such useful life is required for assets
Inventories are stated at lower of cost and net realisable
with finite lives and to confirm that business circumstances
value. The cost is calculated on weighted average method.
continue to support an indefinite useful life assessment for
Cost comprises expenditure incurred in the normal course
assets so classified. Based on such review, the useful life
of business in bringing such inventories to their present
may change or the useful life assessment may change from
location and condition and includes, where applicable,
indefinite to finite. The impact of such changes is accounted
appropriate overheads based on normal level of activity.
for as a change in accounting estimate. Net realisable value is the estimated selling price less
Impairment of Assets estimated costs for completion and sale.
Impairment loss, if any, is provided to the extent, the Obsolete, slow moving and defective inventories are
carrying amount of assets or cash generating units exceed identified from time to time and, where necessary,
their recoverable amount. a provision is made for such inventories.
Recoverable amount is higher of an asset’s net selling Foreign Currency Transactions
price and its value in use. Value in use is the present value The presentation currency of the Group is Indian Rupee.
of estimated future cash flows expected to arise from the Transactions in foreign currency are accounted for at
continuing use of an asset or cash generating unit and from the exchange rate prevailing on the transaction date.
its disposal at the end of its useful life. Gains / losses arising on settlement as also on translation
Impairment losses recognised in prior years are reversed of monetary items are recognised in the Statement of Profit
when there is an indication that the impairment losses and Loss.

Exchange differences arising on monetary items that, or liability that are attributable to the hedged risk. The
in substance, form part of the Group’s net investment in change in the fair value of the designated portion of
a foreign operation (having a functional currency other hedging instrument and the change in fair value of
than Indian Rupee) are accumulated in foreign currency the hedged item attributable to the hedged risk are
translation reserve. recognised in the Statement of Profit and Loss in the
For the preparation of the consolidated financial statements: line item relating to the hedged item.
(a) assets and liabilities of foreign operations, together Hedge accounting is discontinued when the hedging
with goodwill and fair value adjustments assumed on instrument is derecognised, expires or is sold, terminated,
acquisition thereof, are translated to Indian Rupees at or exercised, or when it no longer qualifies for hedge
exchange rates prevailing at the reporting period end; accounting. The fair value adjustment to the carrying
amount of the hedged item arising from the hedged risk
(b) income and expense items are translated at the
is amortised to profit or loss from that date.
average exchange rates prevailing during the period;
when exchange rates fluctuate significantly the rates (ii) Cash flow hedges
prevailing on the transaction date are used instead. The effective portion of changes in the fair value of
Differences arising on such translation are accumulated hedging instrument that are designated and qualify
in foreign currency translation reserve and attributed to as cash flow hedges is recognised in the other
non-controlling interests proportionately. comprehensive income and accumulated as ‘Cash
Flow Hedge Reserve’. The gains / losses relating to the
On the disposal of a foreign operation, all of the exchange
ineffective portion are recognised immediately in the
differences accumulated in equity in respect of that operation
Statement of Profit and Loss.
attributable to the owners of the Group is reclassified to the
Statement of Profit and Loss. In relation to a partial disposal, Amounts previously recognised and accumulated in
that does not result in losing control over the subsidiary, the other comprehensive income are reclassified to profit
proportionate exchange differences accumulated in equity or loss when the hedged item affects the Statement
is reclassified to the Statement of Profit and Loss. of Profit and Loss. However, when the hedged item
results in the recognition of a non-financial asset, such
Derivatives and Hedge Accounting gains / losses are transferred from equity (but not as
Derivatives are initially recognised at fair value and are reclassification adjustment) and included in the initial
subsequently remeasured to their fair value at the end measurement cost of the non-financial asset.
of each reporting period. The resulting gains / losses are Hedge accounting is discontinued when the hedging
recognised in the Statement of Profit and Loss immediately instrument is derecognised, expires or is sold,
unless the derivative is designated and effective as terminated, or exercised, or when it no longer qualifies
a hedging instrument, in which case the resulting for hedge accounting. Any gains / losses recognised in
gain / loss is recognised as per the hedge accounting other comprehensive income and accumulated in equity
principles stated below. at that time remain in equity and is reclassified when
The Group complies with the principles of hedge accounting the underlying transaction is ultimately recognised.
where derivative contracts and / or non-derivative financial When an underlying transaction is no longer expected
assets / liabilities that are permitted under applicable to occur, the gains / losses accumulated in equity are
accounting standards are designated as hedging recognised immediately in the Statement of Profit and
instruments. At the inception of the hedge relationship, the Loss.
Group documents the relationship between the hedging
Investment in Associate and Joint Venture
instrument and the hedged item, along with the risk
management objectives and its strategy for undertaking Investment in associate and joint venture is accounted for
hedge transaction, which can be a fair value hedge or a using the ‘equity method’ less accumulated impairment,
cash flow hedge. if any.
(i) Fair value hedges Financial Instrument, Financial Assets, Financial
Changes in fair value of the designated portion of Liabilities and Equity Instruments
hedging instruments that qualify as fair value hedges Financial assets and financial liabilities are recognised
are recognised in profit or loss immediately, together when the Group becomes a party to the contractual
with any changes in the fair value of the hedged asset provisions of the relevant instrument and are initially

measured at fair value except for trade receivables that do at amortised cost while investments may fall under any of
not contain a significant financing component, which are the aforesaid classes. However, in respect of particular
measured at transaction price. Transaction costs that are investments in equity instruments that would otherwise
directly attributable to the acquisition or issue of financial be measured at fair value through profit or loss, an
assets and financial liabilities (other than financial assets irrevocable election at initial recognition may be made to
and financial liabilities measured at fair value through profit present subsequent changes in fair value through other
or loss) are added to or deducted from the fair value on comprehensive income.
initial recognition of financial assets or financial liabilities. Impairment: The Group assesses at each reporting date
Purchase or sale of financial assets that require delivery whether a financial asset (or a group of financial assets)
of assets within a time frame established by regulation or such as Investments, Trade receivables, Advances and
convention in the market place (regular way trades) are Security deposits held at amortised cost and financial
recognised on the trade date, i.e., the date when the Group assets that are measured at fair value through other
commits to purchase or sell the asset. comprehensive income are tested for impairment based
Financial Assets on evidence or information that is available without undue
cost or effort. Expected credit losses are assessed and loss
Recognition: Financial assets include Investments, Trade
allowances recognised if the credit quality of the financial
receivables, Advances, Security deposits, Cash and cash
asset has deteriorated significantly since initial recognition.
equivalents. Such assets are initially recognised at fair
value or transaction price, as applicable, when the Group Reclassification: When and only when the business
becomes party to contractual obligations. The transaction model is changed, the Group shall reclassify all affected
price includes transaction costs unless the asset is being financial assets prospectively from the reclassification date
fair valued through the Statement of Profit and Loss. as subsequently measured at amortised cost, fair value
through other comprehensive income or fair value through
Classification: Management determines the classification
profit or loss without restating the previously recognised
of an asset at initial recognition depending on the purpose
gains, losses or interest and in terms of the reclassification
for which the assets were acquired. The subsequent
principles laid down in the Ind AS relating to Financial
measurement of financial assets depends on such
Instruments.
classification.
Derecognition: Financial assets are derecognised when
Financial assets are classified as those measured at:
the right to receive cash flows from the assets has expired,
(a) amortised cost, where the financial assets are held or has been transferred, and the Group has transferred
solely for collection of cash flows arising from payments substantially all of the risks and rewards of ownership.
of principal and / or interest. Concomitantly, if the asset is one that is measured at:
(b) fair value through other comprehensive income (a) amortised cost, the gain or loss is recognised in the
(FVTOCI), where the financial assets are held not only Statement of Profit and Loss;
for collection of cash flows arising from payments of
(b) fair value through other comprehensive income, the
principal and interest but also from the sale of such
cumulative fair value adjustments previously taken to
assets. Such assets are subsequently measured at fair
reserves are reclassified to the Statement of Profit and
value, with unrealised gains and losses arising from
Loss unless the asset represents an equity investment,
changes in the fair value being recognised in other
in which case the cumulative fair value adjustments
comprehensive income.
previously taken to reserves are reclassified within
(c) fair value through profit or loss (FVTPL), where the equity.
assets are managed in accordance with an approved
Income Recognition: Interest income is recognised in the
investment strategy that triggers purchase and sale
Statement of Profit and Loss using the effective interest
decisions based on the fair value of such assets. Such
method. Dividend income is recognised in the Statement
assets are subsequently measured at fair value, with
of Profit and Loss when the right to receive dividend is
unrealised gains and losses arising from changes in the
established.
fair value being recognised in the Statement of Profit
and Loss in the period in which they arise. Financial Liabilities
Trade receivables, Advances, Security deposits, Cash Borrowings, trade payables and other financial liabilities
and cash equivalents etc. are classified for measurement are initially recognised at fair value and are subsequently

measured at amortised cost. Any discount or premium on (b) related to incurring specific expenditures are taken to
redemption / settlement is recognised in the Statement of the Statement of Profit and Loss on the same basis and
Profit and Loss as finance cost over the life of the liability in the same periods as the expenditures incurred.
using the effective interest method and adjusted to the (c) by way of financial assistance on the basis of certain
liability figure disclosed in the Balance Sheet. qualifying criteria are recognised as they become
Financial liabilities are derecognised when the liability receivable.
is extinguished, that is, when the contractual obligation is In the unlikely event that a grant previously recognised is
discharged, cancelled or on expiry. ultimately not received, it is treated as a change in estimate
Offsetting Financial Instruments and the amount cumulatively recognised is expensed in the
Financial assets and liabilities are offset and the net amount Statement of Profit and Loss.
is included in the Balance Sheet where there is a legally Dividend Distribution
enforceable right to offset the recognised amounts and
Dividends paid (including income tax thereon) are
there is an intention to settle on a net basis or realise the
recognised in the period in which the interim dividends are
asset and settle the liability simultaneously.
approved by the Board of Directors, or in respect of the final
Equity Instruments dividend when approved by shareholders.
Equity instruments are recognised at the value of the Employee Benefits
proceeds, net of direct costs of the capital issue.
The Group makes contributions to both defined benefit
Revenue and defined contribution schemes which are mainly
Revenue is measured at the transaction price that the administered through duly constituted and approved Trusts.
Company receives or expects to receive as consideration Provident Fund contributions are in the nature of defined
for goods supplied and services rendered, net of returns contribution scheme. In respect of employees who are
and estimates of variable consideration such as discounts to members of constituted and approved trusts, the Group
customers. Revenue from the sale of goods includes excise recognises contribution payable to such trusts as an
duties and National Calamity Contingent Duty which are expense including any shortfall in interest between the
payable on manufacture of goods but excludes taxes such amount of interest realised by the investment and the
as VAT and Goods and Services Tax which are payable in interest payable to members at the rate declared by the
respect of sale of goods and services. Government of India. In respect of other employees,
Revenue from the sale of goods and services is recognised provident funds are deposited with the Government and
when the Group performs its obligations to its customers recognised as expense.
and the amount of revenue can be measured reliably The Group makes contribution to defined contribution
and recovery of the consideration is probable. The timing pension plan. The contribution payable is recognised as an
of such recognition in case of sale of goods is when the expense, when an employee renders the related service.
control over the same is transferred to the customer, which
The Group also makes contribution to defined benefit
is mainly upon delivery and in case of services, in the period
pension and gratuity plan. The cost of providing benefits
in which such services are rendered.
under the defined benefit obligation is calculated by
Government Grant independent actuary using the projected unit credit method.
Group entities may receive government grants that Service costs and net interest expense or income is
require compliance with certain conditions related to the reflected in the Statement of Profit and Loss. Gain or Loss
entity’s operating activities or are provided to the entity on account of remeasurements are recognised immediately
by way of financial assistance on the basis of certain through other comprehensive income in the period in which
qualifying criteria. they occur.
Government grants are recognised when there is The employees of the Group are entitled to compensated
reasonable assurance that the grant will be received upon leave for which the Group records the liability based on
the Group entity complying with the conditions attached to actuarial valuation computed using projected unit credit
the grant. Accordingly, government grants: method. These benefits are unfunded.
(a) related to or used for assets, are deducted from the Actual disbursements made under the Workers’ Voluntary
carrying amount of the asset. Retirement Scheme are accounted as revenue expenses.

Employee Share Based Compensation Leases

Stock Options The Group assesses at contract inception whether a
contract is, or contains, a lease. A contract is, or contains, a
Stock Options are granted to eligible employees under
lease if it conveys the right to control the use of an identified
the ITC Employee Stock Option Schemes (“ITC ESOS”),
asset for a period of time in exchange for consideration.
as may be decided by the Nomination & Compensation
Committee / Board. Eligible employees for this purpose Group as a Lessee
include employees of the Group entities, their Directors and Right-of-Use (ROU) assets are recognised at inception of
those on deputation to joint ventures and associates. a contract or arrangement for significant lease components
Under Ind AS, the cost of ITC Stock Options (Stock Options) at cost less lease incentives, if any. ROU assets are
is recognised based on the fair value of Stock Options as subsequently measured at cost less accumulated
on the grant date. depreciation and impairment losses, if any. The cost of ROU
While the fair values of Stock Options granted is recognised assets includes the amount of lease liabilities recognised,
in the Statement of Profit and Loss for employees of the initial direct cost incurred and lease payments made at
Group (other than those out on deputation), the value or before the lease commencement date. ROU assets
of Stock Options, net of reimbursements, granted to are generally depreciated over the shorter of the lease
employees on deputation is considered as capital term and estimated useful lives of the underlying assets
contribution / investment. on a straight line basis. Lease term is determined based
The Group generally seeks reimbursement of the value on consideration of facts and circumstances that create
of Stock Options from such companies, as applicable. It an economic incentive to exercise an extension option,
may, if so recommended by the Corporate Management or not to exercise a termination option. Lease payments
Committee and approved by the Audit Committee, decide associated with short-term leases and low value leases are
not to seek such reimbursements in respect of value of charged to the Statement of Profit and Loss on a straight
Stock Options from such companies, who need to conserve line basis over the term of the relevant lease.
financial capacity to sustain their business and growth The Group recognises lease liabilities measured at the
plans and where the quantum of reimbursement is not present value of lease payments to be made on the date
material - the materiality threshold being ` 5 Crores for each of recognition of the lease. Such lease liabilities do not
entity for a financial year. include variable lease payments (that do not depend on an
index or a rate), which are recognised as expense in the
Cash Settled Stock Appreciation Linked Reward
periods in which they are incurred. Interest on lease liability
(SAR) Plan
is recognised using the effective interest method. Lease
Cash Settled SAR units are granted to eligible employees liabilities are subsequently increased to reflect the accretion
under the ITC Employee Cash Settled Stock Appreciation of interest and reduced for the lease payments made. The
Linked Reward Plan (“ITC ESARP”). The eligible employees carrying amount of lease liabilities is also remeasured
for this purpose are such present and future permanent upon modification of lease arrangement or upon change
employees of the Company, including a Director of the
in the assessment of the lease term. The effect of such
Company, as may be decided by the CMC / Nomination &
remeasurements is adjusted to the value of the ROU assets.
Compensation Committee / Board.
For cash settled SAR units granted to eligible employees, a Group as a Lessor
liability is initially measured at fair value at the grant date and Leases in which the Group does not transfer substantially
is subsequently remeasured at each reporting period, until all the risks and rewards of ownership of an asset are
settled. The fair value of ESAR units granted is recognised classified as operating leases. Where the Group is a lessor
in the Statement of Profit and Loss for employees of the under an operating lease, the asset is capitalised within
Group. In case of employees on deputation to group property, plant and equipment or investment property
companies, the Company generally seeks reimbursements and depreciated over its useful economic life. Payments
from the concerned group company. The value of such received under operating leases are recognised in the
payments, net of reimbursements, is considered as capital Statement of Profit and Loss on a straight line basis over
contribution / investment. the term of the lease.

Taxes on Income to settle the obligation; and the amount can be reliably
Taxes on income comprise current taxes and deferred estimated. The amount so recognised is a best estimate
taxes. Current tax in the Statement of Profit and Loss is of the consideration required to settle the obligation at the
provided as the amount of tax payable in respect of taxable reporting date, taking into account the risks and uncertainties
income for the period using tax rates and tax laws enacted surrounding the obligation.
during the period, together with any adjustment to tax In an event when the time value of money is material, the
payable in respect of previous years. provision is carried at the present value of the cash flows
Deferred tax is recognised on temporary differences estimated to settle the obligation.
between the carrying amounts of assets and liabilities and Operating Segments
the amounts used for taxation purposes (tax base), at the
Operating segments are reported in a manner consistent
tax rates and tax laws enacted or substantively enacted by
with the internal reporting provided to the chief operating
the end of the reporting period.
decision-maker (CODM). The CODM, who is responsible
Deferred tax assets are recognised for the future tax for allocating resources and assessing performance of the
consequences to the extent it is probable that future operating segments, has been identified as the Corporate
taxable profits will be available against which the deductible Management Committee.
temporary differences can be utilised.
Segments are organised based on businesses which
Income tax, insofar as it relates to items disclosed under have similar economic characteristics as well as exhibit
other comprehensive income or equity, is disclosed similarities in nature of products and services offered,
separately under other comprehensive income or equity, the nature of production processes, the type and class of
as applicable. customer and distribution methods.
Deferred tax assets and liabilities are offset when there is Segment revenue arising from third party customers is
legally enforceable right to offset current tax assets and reported on the same basis as revenue in the financial
liabilities and when the deferred tax balances relate to the statements. Inter-segment revenue is reported on the basis
same taxation authority. Current tax assets and tax liabilities of transactions which are primarily market led. Segment
are offset where the entity has a legally enforceable right to results represent profits before finance charges, unallocated
offset and intends either to settle on net basis, or to realise corporate expenses and taxes.
the asset and settle the liability simultaneously.
“Unallocated Corporate Expenses” include revenue and
Claims expenses that relate to initiatives / costs attributable to the
Claims against the Group not acknowledged as debts are enterprise as a whole.
disclosed after a careful evaluation of the facts and legal
Financial and Management Information Systems
aspects of the matter involved.
The Group’s Accounting System is designed to unify the
Provisions Financial and Cost Records and also to comply with the
Provisions are recognised when, as a result of a past relevant provisions of the Companies Act, 2013, to provide
event, the Group has a legal or constructive obligation; it financial and cost information appropriate to the businesses
is probable that an outflow of resources will be required and facilitate Internal Control.

2. Use of estimates and judgements
The preparation of financial statements in conformity notes to the financial statements are the only entities
with generally accepted accounting principles requires over which the Group has significant influence, and
management to make estimates and assumptions that accordingly associates.
affect the reported amounts of assets and liabilities and 3. Joint Control:
disclosure of contingent liabilities at the date of the financial
(i) The Group holds 50% of the equity share capital
statements and the results of operations during the
of Maharaja Heritage Resorts Limited, a company
reporting period end. Although these estimates are based
involved in operation of hotel properties. The Group
upon management’s best knowledge of current events and
do not consider that it is able to exercise control
actions, actual results could differ from these estimates. over the company as the decisions about relevant
The estimates and underlying assumptions are reviewed on activities of the company are made jointly between
an ongoing basis. Revisions to accounting estimates are the Group and the co-venturer (who holds 50% of
recognised in the period in which the estimate is revised the equity share capital) and both the parties have
if the revision affects only that period, or in the period of rights to the net assets of such arrangement.
the revision and future periods if the revision affects both (ii) The Group holds 26% of the equity share capital of
current and future periods. Espirit Hotels Private Limited, a company involved in
A. Judgements in applying accounting policies development of a luxury hotel complex. The Group
has considered that in view of the shareholder
The following are the judgements, apart from those involving
agreement, key decisions about relevant activities of
estimations (see note B below), that the Group have made
such company are made jointly between the Group
in the process of applying the accounting policies and that
and the co-venturer (who holds 74% of the equity
have a significant effect on the amounts recognised in the
share capital) and both the parties have rights to the
consolidated financial statements:
net assets of such arrangement.
1. Control:
(iii) The Group holds 27.90% of the equity share capital
The Group assessed whether or not it has control on its of Logix Developers Private Limited, a company
investees based on whether, as an investor, it has the intended for the purpose of developing a luxury
power / rights and consequently the practical ability to hotel-cum-service apartment complex. The Group
direct the relevant activities of its investees unilaterally. has concluded that the key decisions about relevant
In making this judgement, the Group considered the activities of such company are made jointly between
absolute size of its holding, the relative size of and the Group and the co-venturer (who holds 72.10% of
dispersion of other shareholders, and whether any the equity share capital) and both the parties have
contractual arrangements exist between the Company rights to the net assets of such arrangement.
(and its subsidiaries) and other shareholders of the
(iv) The Group holds 50% of the equity share capital
investees. Based on this, and in accordance with its
of ITC Essentra Limited, a company involved in
Accounting Policy, the Group has determined that the
manufacture and sale of filter rods. The Group has
entities listed in the notes to the financial statements are
concluded that the key decisions about relevant
the only entities over which Group has control. activities of such company are made jointly between
The Company is a settlor for certain trusts, i.e., ITC the Group and the co-venturer (who holds 50% of
Sangeet Research Academy, ITC Education Trust the equity share capital) and both the parties have
and ITC Rural Development Trust. The Group while rights to the net assets of such arrangement.
considering the nature and insignificant variability of 4. Useful life of Intangible Assets:
its return has concluded that it does not ‘control’ these
The Group is required to determine whether its
trusts.
intangible assets have indefinite or finite life which is a
2. Significant influence: subject matter of judgement. Certain trademarks have
The Group assessed whether or not it has significant been considered of having an indefinite useful life taking
influence on its investees based on its practical ability to into account that there are no technical, technological or
participate in the financial and operating policy decisions commercial risks of obsolescence or limitations under
of the investee, though it is not in control or in joint contract or law. Other trademarks have been amortized
control of these policies. Based on such assessment, over their useful economic life. Refer notes to the
the Group determined that the entities listed in the financial statements.

2. Use of estimates and judgements (Contd.)
B. Key sources of estimation uncertainty 3. Actuarial Valuation:

The following are the key assumptions concerning the The determination of Group’s liability towards defined
future, and other key sources of estimation uncertainty at the benefit obligation to employees is made through
end of the reporting period that may have a significant risk independent actuarial valuation including determination
of causing a material adjustment to the carrying amounts of of amounts to be recognised in the Statement of Profit
assets and liabilities within the next financial year. and Loss and in Other Comprehensive Income. Such
1. Useful lives of property, plant and equipment, valuation depends upon assumptions determined after
investment property and intangible assets: taking into account inflation, seniority, promotion and
As described in the significant accounting policies, the other relevant factors such as supply and demand
Group reviews the estimated useful lives of property, factors in the employment market. Information about
plant and equipment, investment property and intangible such valuation is provided in notes to the financial
assets at the end of each reporting period and the impact statements.
of changes in the estimated useful life is considered in
the period in which the estimate is revised. 4. Claims, Provisions and Contingent Liabilities:
The Group has ongoing litigations with various regulatory
2. Fair value measurements and valuation processes:
authorities and third parties. Where an outflow of funds
Some of the Group’s assets and liabilities are measured is believed to be probable and a reliable estimate of
at fair value for financial reporting purposes. In
the outcome of the dispute can be made based on
estimating the fair value of an asset or a liability, the
management’s assessment of specific circumstances of
Group uses market-observable data to the extent it is
each dispute and relevant external advice, management
available. Where Level 1 inputs are not available, the
Group engages third party valuers, where required, to provides for its best estimate of the liability.
perform the valuation. Information about the valuation Such accruals are by nature complex and can take
techniques and inputs used in determining the fair value number of years to resolve and can involve estimation
of various assets, liabilities and share based payments uncertainty. Information about such litigations is
are disclosed in the notes to the financial statements. provided in notes to the financial statements.

(` in Crores)
Gross Block
Foreign Foreign
Currency Currency
As at Withdrawals Translation As at Withdrawals Translation As at
31st March, and Reserve 31st March, and Reserve 31st March,
Particulars 2021 Additions adjustments adjustments 2022 Additions adjustments# adjustments 2023
3A. Property, Plant and
Equipment *
Land1 2086.20 56.23 35.28 0.01 2107.16 7.17 3.32 – 2111.01
Buildings 8114.44 764.41 57.29 0.01 8821.57 693.69 10.55 – 9504.71
Leasehold Improvements 21.74 1.40 0.02 (0.01) 23.11 0.41 6.36 0.05 17.21
Plant and Equipment 15258.10 1820.43 215.46 (0.04) 16863.03 1750.62 182.14 0.24 18431.75
Furniture and Fixtures 832.91 79.87 5.42 (0.02) 907.34 104.25 11.87 0.05 999.77
Vehicles 180.41 20.45 20.91 (0.57) 179.38 29.79 23.44 (0.02) 185.71
Office Equipment 40.71 4.05 1.06 – 43.70 3.84 3.88 0.02 43.68
Railway Sidings 1.73 – – – 1.73 – – – 1.73
TOTAL 26536.24 2746.84 335.44 (0.62) 28947.02 2589.77 241.56 0.34 31295.57
3B. Capital work-in-progress 4004.45 2128.20 2692.74 (241.46) 3198.45 2316.23 2517.67 (12.30) 2984.71
3C. Investment Property5 410.11 – – – 410.11 – (0.52) – 410.63
2
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)2
Trademarks 1920.61 – – – 1920.61 – – (0.01) 1920.60
Computer Software 270.51 37.62 34.48 (0.01) 273.64 69.58 3.36 – 339.86
Know How, Business and
Commercial Rights [Also refer
note 28(xv)] 33.82 9.53 – – 43.35 745.88 – – 789.23
Customer Relationships 35.21 – – – 35.21 – – – 35.21
TOTAL 2260.15 47.15 34.48 (0.01) 2272.81 815.46 3.36 (0.01) 3084.90
3F. Other Intangible assets
under development 6.84 64.83 44.58 – 27.09 54.43 62.93 – 18.59
Land 803.05 16.89 – (97.96) 721.98 – – (3.48) 718.50
Buildings 250.52 46.29 41.77 0.03 255.07 84.82 72.74 0.38 267.53
Plant and Equipment 48.63 – – – 48.63 – – – 48.63
Vehicles – – – – – 2.92 – – 2.92
TOTAL 1102.20 63.18 41.77 (97.93) 1025.68 87.74 72.74 (3.10) 1037.58
# Includes amounts transferred from Property, Plant and Equipment to Investment Property.
^ Also refer Note 28(xi)
(` in Crores)
* The above includes following assets given on As at 31st March, 2022 2022 As at 31st March, 2023 2023
operating lease: Depreciation Depreciation
Accumulated Charge Accumulated Charge
Particulars Gross Block Depreciation Net Block for the year Gross Block Depreciation Net Block for the year
Buildings 1.12 0.20 0.92 0.11 0.94 0.23 0.71 0.02

Plant and Equipment 224.35 142.33 82.02 20.12 243.01 164.17 78.84 17.39
TOTAL 225.47 142.53 82.94 20.23 243.95 164.40 79.55 17.41

(` in Crores)
Depreciation and Amortization Net Book Value
Foreign Foreign
On Currency On Currency
Upto withdrawals Translation Upto withdrawals Translation Upto As at As at
31st March, and Reserve 31st March, and Reserve 31st March, 31st March, 31st March,
Particulars 2021 For the year adjustments adjustments 2022 For the year adjustments# adjustments 2023 2023 2022
3A. Property, Plant and
Equipment *
Land1 – – – – – – – – – 2111.01 2107.16
Buildings 1000.12 229.48 15.20 0.01 1214.41 249.84 4.23 – 1460.02 8044.69 7607.16
Leasehold Improvements 13.23 2.44 0.02 (0.01) 15.64 1.94 6.00 0.02 11.60 5.61 7.47
Plant and Equipment 5850.11 1271.48 213.25 (0.01) 6908.33 1269.70 149.85 0.16 8028.34 10403.41 9954.70
Furniture and Fixtures 412.58 75.07 4.10 0.02 483.57 80.62 9.93 0.04 554.30 445.47 423.77
Vehicles 78.29 20.93 13.09 (0.22) 85.91 20.25 15.15 (0.01) 91.00 94.71 93.47
Office Equipment 27.19 4.65 1.03 0.01 30.82 5.95 4.59 0.01 32.19 11.49 12.88
Railway Sidings 0.78 0.13 – – 0.91 0.13 – – 1.04 0.69 0.82
TOTAL 7382.30 1604.18 246.69 (0.20) 8739.59 1628.43 189.75 0.22 10178.49 21117.08 20207.43
3B. Capital work-in-progress – – – – – – – – – 2984.71 3198.45
3C. Investment Property5 33.55 12.36 – – 45.91 12.38 (0.08) – 58.37 352.26 364.20
3D. Goodwill2
Goodwill on Consolidation – – – – – – – – – 202.53 202.53
Goodwill acquired through
business combinations – – – – – – – – – 577.20 577.20
TOTAL – – – – – – – – – 779.73 779.73
3E. Other Intangible assets
(acquired)2
Trademarks 17.43 3.16 – – 20.59 3.16 – – 23.75 1896.85 1900.02
Computer Software 209.94 33.99 34.44 (0.01) 209.48 23.66 0.41 – 232.73 107.13 64.16
Know How, Business and
Commercial Rights [Also refer
note 28(xv)] 18.73 3.52 – – 22.25 67.06 – – 89.31 699.92 21.10
Customer Relationships 2.99 4.40 – – 7.39 4.40 – – 11.79 23.42 27.82
TOTAL 249.09 45.07 34.44 (0.01) 259.71 98.28 0.41 – 357.58 2727.32 2013.10
3F. Other Intangible assets
under development – – – – – – – – – 18.59 27.09
Land 19.62 13.08 0.27 (2.67) 29.76 6.84 – (0.31) 36.29 682.21 692.22
Buildings 94.34 55.55 37.67 0.01 112.23 58.98 68.27 0.30 103.24 164.29 142.84
Plant and Equipment 11.05 5.51 – – 16.56 5.51 – – 22.07 26.56 32.07
Vehicles – – – – – 1.09 – 0.01 1.10 1.82 –
TOTAL 125.01 74.14 37.94 (2.66) 158.55 72.42 68.27 – 162.70 874.88 867.13
Notes:
1. Land includes certain lands at Munger with Gross Block - ` 1.16 Crores (2022 - ` 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.
2. a) Goodwill arising on Business Combination is carried at cost and periodically tested for impairment in line with applicable Accounting Standards. The Company has also considered certain acquired Trademarks aggregating ` 1889.78 Crores
(2022 - ` 1889.78 Crores) as having indefinite useful lives. The indefinite useful life for such trademarks has been assessed considering no technical, technological or commercial risks of obsolescence or any limitations under contract or
law. Such assets are also annually tested for impairment. These assets pertain to the ‘FMCG - Others’ Segment and are related to the Branded Packaged Foods and Personal Care Products businesses of the Company. Impairment testing
for goodwill and intangible assets with indefinite useful lives has been carried out considering their recoverable amounts which, inter-alia, includes estimation of their value-in-use based on management projections. These projections have
been made for a period of five years, or longer, as applicable and consider various factors, such as market scenario, growth trends, growth and margin projections, and terminal growth rates specific to the business. For such projections,
discount rate of 10% (2022 - 10%) and long-term growth rates ranging between 5% to 6% (2022 - 5% to 6%) have been considered. Discount rate has been determined considering the Weighted Average Cost of Capital (WACC) of market
benchmarks. Based on the above assessment, no impairment has been recognised during the year.
b) Computer software and Customer Relationships are amortized over a period of 5 years and 8 years respectively. Other Intangibles with finite useful life are amortized over a period of 10 years unless shorter useful life is required based
on contractual or legal terms.
3. The amortization expense of intangible assets has been included under ‘Depreciation and amortization expense’ in the Statement of Profit and Loss.
4. The amount of expenditure recognised in the carrying amount of property, plant and equipment in the course of construction is ` 90.68 Crores (2022 - ` 148.81 Crores).
5. The fair value of the investment property is ` 903.04 Crores (2022 - ` 870.11 Crores). The fair value has been determined on the basis of valuation carried out at the reporting date by registered valuer as defined under rule 2 of Companies
(Registered Valuers and Valuation) Rules, 2017 and the same has been categorised as Level 2 based on the valuation techniques used and inputs applied. The main inputs considered by the valuer are government rates, property location,
market research & trends, contracted rentals, terminal yields, discount rates and comparable values, as appropriate.
Amounts recognised in the Statement of Profit and Loss in respect of the investment property is as under:
(` in Crores)
Rental Income etc. from investment property 124.05 111.94
Direct Operating Expenses arising from investment property that generated
rental income during the year $ 11.42 9.94
Direct Operating Expenses arising from investment property that did not
generate rental income during the year – –
$As per the contractual arrangements, the Company is responsible for the maintenance of common area at its own cost. The expenses arising out of such arrangements are not material.

Capital work-in-progress (CWIP) ageing schedule (` in Crores)
Amount in CWIP for a period of Amount in CWIP for a period of
Projects in Progress 933.53 849.85 521.07 894.00 3198.45 1190.55 646.01 302.56 845.59 2984.71
Total 933.53 849.85 521.07 894.00 3198.45 1190.55 646.01 302.56 845.59 2984.71
Completion schedule for Projects in Capital work-in-progress, which are overdue or has exceeded its cost compared to its original plan
(` in Crores)
To be completed in To be completed in
Less than More than Less than More than

Particulars 1 year 1 - 2 years 2 - 3 years 3 years 1 year 1 - 2 years 2 - 3 years 3 years
MXD - COL – 639.44 – – 1018.03 – – –

MXD - KOL – 542.00 – – 633.54 – – –
H - AHM 440.31 – – – – – – –
F - KHO – 164.42 – – – – – –
F - GNT 69.46 – – – – – – –
ME - MED 62.47 – – – – – – –
ME - PUN 20.01 – – – – – – –
Other Intangible assets under development (IAUD) ageing schedule (` in Crores)

Amount in IAUD for a period of Amount in IAUD for a period of
Projects in Progress 23.84 3.25 – – 27.09 15.33 0.01 3.25 – 18.59

Total 23.84 3.25 – – 27.09 15.33 0.01 3.25 – 18.59
Note: There are no projects in Other Intangible assets under development, which are overdue or has exceeded its cost compared to its original plan as at 31st March, 2023
and 31st March, 2022.

(Fully Paid
unless (` in (` in
stated Number Number
Crores) Crores)
otherwise)
In Associates (carrying amount determined using

the equity method of accounting)
Quoted
International Travel House Limited 10 39,14,233 39,14,233
Cost of acquisition (including goodwill of

` 11.89 Crores) 21.87 21.87
Add / (Less) : Group Share of Profits / (Losses) 51.01 72.88 37.33 59.20
Gujarat Hotels Limited 10 17,33,907 17,33,907

` 1.16 Crores) 1.94 1.94
Unquoted
Delectable Technologies Private Limited 10 100 100

` 0.09 Crore) 0.10 0.10
Add / (Less) : Group Share of Profits / (Losses) (0.01) 0.09 … 0.10
[Refer Note 28(x)] 10 100
Cost of acquisition [including goodwill of
` 1.03 Crores,(2022 - ` Nil)] 0.96 – –
Add / (Less) : Group Share of Profits / (Losses) (0.06) 0.90 – –
ATC Limited
Fully paid 100 55,650 55,650
Cost of acquisition (net of capital reserve of

` 0.16 Crore) 0.83 0.83
` 70.00 per share paid 100 1,39,125 1,39,125
` 0.30 Crore) 2.92 2.92
Russell Investments Limited 10 42,75,435 42,75,435
Cost of acquisition (net of capital reserve of

` 0.30 Crore) 4.27 4.27
Divya Management Limited 10 41,82,915 41,82,915

` 1.09 Crores) 6.93 6.93
Antrang Finance Limited 10 43,24,634 43,24,634

` 0.10 Crore) 4.40 4.40

(Fully Paid
unless (` in (` in
Crores) Crores)
otherwise)

INVESTMENT IN EQUITY INSTRUMENTS (Contd.)
In Joint Ventures (carrying amount determined

using the equity method of accounting)
Unquoted
Espirit Hotels Private Limited [Refer Note 28(viii)] 10 4,65,09,200 4,65,09,200
Cost of acquisition 46.17 46.17
Add / (Less) : Group Share of Profits / (Losses) … 46.17 … 46.17
Maharaja Heritage Resorts Limited 100 1,80,000 1,80,000

` 0.13 Crore) – –
Add / (Less) : Group Share of Profits / (Losses) – – – –
Logix Developers Private Limited [Refer Note 28(ix)] 10 77,66,913 77,66,913
` 23.84 Crores) 42.07 42.07
Add / (Less) : Group Share of Profits / (Losses) (40.65) (42.07)
Add / (Less) : Provision for Impairment (1.42) – – –
ITC Essentra Limited 10 22,50,000 22,50,000
Cost of acquisition 38.85 38.85
In Others (at fair value through other

comprehensive income unless stated otherwise)
Quoted
VST Industries Limited 10 476 0.15 476 0.15
HLV Limited 2 5,49,80,620 50.31 5,49,80,620 50.32
EIH Limited 2 10,08,53,602 1670.64 10,08,53,602 1559.71
Tourism Finance Corporation of India Limited 10 25,000 0.18 25,000 0.15
Unquoted
Adyar Property Holding Company Private Limited 100 311 0.03 311 0.03
Andhra Pradesh Gas Power Corporation Limited 10 8,04,000 – 8,04,000 2.32
Bihar Hotels Limited 2 8,00,000 0.04 8,00,000 0.04
Jupiter Township Limited 1 150 … 150 …
Lotus Court Limited (Class G Shares) 48,000 2 2.34 2 2.34
Mirage Advertising and Marketing Limited 10 12,488 – 12,488 –
[Refer Note 28(x)]
(at fair value through profit or loss) 10 – – 100 0.96
(at fair value through profit or loss) 10 400 3.82 – –
Woodlands Multispeciality Hospital Limited 10 13,605 0.01 13,605 0.01
Carried over 2027.89 1880.21

(Fully Paid
unless (` in (` in
Crores) Crores)
otherwise)

In Associates (carrying amount determined using

the equity method of accounting)
Unquoted
Preference Shares) 10 7,759 5,792

` 6.78 Crores (2022 - ` 5.10 Crores)] 7.40 5.52
Add / (Less) : Group Share of Profits / (Losses) (1.00) 6.40 (0.46) 5.06
[Refer Note 28(x)]
Preference Shares) 10 2,980 –
` 30.62 Crores (2022 - ` Nil)] 32.50 –
Add / (Less) : Group Share of Profits / (Losses) (1.68) 30.82 – –
In Others (at fair value through profit or loss)
Unquoted
[Refer Note 28(x)]

Preference Shares) 10 – – 1,980 19.04
Preference Shares) 100 2,980 35.52 – –
INVESTMENT IN GOVERNMENT OR TRUST

SECURITIES (at amortised cost)
Quoted
State Development Loans
7.20% Tamil Nadu - 25-Jan-2027 100 – – 20,85,500 21.81

7.41% Uttar Pradesh - 09-Nov-2026 100 – – 20,00,000 21.08
7.51% Maharashtra - 24-May-2027 100 – – 65,00,000 68.49
7.59% Gujarat - 15-Feb-2027 100 – – 1,25,00,000 132.61
7.62% Uttar Pradesh - 15-Feb-2027 100 – – 30,00,000 31.81
7.84% Maharashtra - 13-Jul-2026 100 – – 2,00,00,000 212.59
7.86% Karnataka - 15-Mar-2027 100 – – 50,00,000 53.24
7.96% Maharashtra - 29-Jun-2026 100 – – 25,00,000 26.73
8.03% Uttar Pradesh - 11-May-2026 100 – – 70,00,000 74.77
Carried over 2100.63 2547.44

(Fully Paid
unless (` in (` in
Crores) Crores)
otherwise)


SECURITIES (Contd.)
8.08% Maharashtra - 15-Jun-2026 100 – – 5,00,000 5.36
8.36% Maharashtra - 27-Jan-2026 100 – – 35,00,000 37.76
8.72% Tamil Nadu - 19-Sep-2026 100 – – 10,00,000 10.99
Government of India Zero Coupon Government Stock
Unquoted
Government Securities - cost ` 70000.00 0.01 0.01
National Savings Certificates (pledged with

various Mandi Samitis) (cost ` 6000.00) ... ...

Quoted

Non-Convertible
Housing and Urban Development Corporation Limited
7.07% - Series B - 01-Oct-2025 10,00,000 4,300 433.65 4,300 435.09
7.19% - Series A - 31-Jul-2025 10,00,000 150 15.31 150 15.43
7.39% - Series 2A - 08-Feb-2031 1,000 7,00,696 70.07 7,00,696 70.07
8.20% - Series 2 - 05-Mar-2027 1,000 5,00,000 53.42 5,00,000 54.16
Carried over 2950.44 3409.05

(Fully Paid
unless (` in (` in
Crores) Crores)
otherwise)


DEBENTURES (Contd.)
7.36% - Series II - 22-Jan-2028 1,000 3,00,000 31.69 3,00,000 31.99
8.01% - Series 1A - 12-Nov-2023 1,000 – – 50,000 5.13
8.26% - Series V B - 23-Aug-2028 10,00,000 1,175 122.82 1,175 123.63
8.46% - Series VI B - 30-Aug-2028 10,00,000 1,300 138.65 1,300 139.96
8.48% - Series VII B - 05-Sep-2028 10,00,000 1,780 187.31 1,780 188.71
7.07% - Series 102 - 21-Dec-2025 1,000 70,498 7.18 70,498 7.22
7.15% - Series 100 - 21-Aug-2025 10,00,000 250 25.46 250 25.64
7.19% - Series 99 - 31-Jul-2025 10,00,000 2,250 225.38 2,250 225.52
7.34% - Series 86A - 19-Feb-2028 1,000 1,00,000 10.63 1,00,000 10.74
8.23% - Series 91 - 18-Feb-2024 1,000 – – 8,00,000 82.81
8.35% - Series 89 - 21-Nov-2023 10,00,000 – – 100 10.31
8.48% - Series 89A - 21-Nov-2028 10,00,000 1,250 131.09 1,250 131.94
8.55% - Series 94A - 12-Feb-2029 10,00,000 130 13.69 130 13.79

Development
7.07% - Series 1A - 25-Feb-2026 10,00,000 2,000 204.71 2,000 206.19
7.11% - Series NHAI - II A - 18-Sep-2025 10,00,000 2,600 260.25 2,600 260.33
7.14% - Series I A - 11-Jan-2026 1,000 8,06,381 81.45 8,06,381 81.70
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 17,49,943 182.10 17,49,943 182.78
8.50% - Series II A - 05-Feb-2029 1,000 5,00,000 55.55 5,00,000 56.33
8.75% - Series II B - 05-Feb-2029 1,000 2,50,000 28.25 2,50,000 28.71
8.46% - Series V - 30-Aug-2028 10,00,000 800 83.65 800 84.20
7.16% - Series 136 - 17-Jul-2025 10,00,000 600 61.11 600 61.57
8.46% - Series 107B - 30-Aug-2028 10,00,000 500 52.28 500 52.63
8.54% - Series 2A - 16-Nov-2028 1,000 3,50,000 39.42 3,50,000 40.07
Carried over 5143.11 5710.95

(Fully Paid
unless (` in (` in
Crores) Crores)
otherwise)


DEBENTURES (Contd.)
REC Limited
7.17% - Series 5A - 23-Jul-2025 10,00,000 850 86.51 850 87.12
8.46% - Series 3B - 29-Aug-2028 10,00,000 1,190 127.30 1,190 128.55
8.46% - Series 2A - 24-Sep-2028 1,000 3,50,000 39.20 3,50,000 39.84
8.54% - Series 4B - 11-Oct-2028 10,00,000 50 5.25 50 5.28

Non-Convertible
7.83% - Series 118 - 21-Mar-2027 10,00,000 – – 1,750 187.83

Non-Convertible
5.20% - Series X 01 - 04-Mar-2025

(with Put and Call Option on 04-Mar-2024) 10,00,000 – – 2,000 200.00

Development
5.70% - Series 22 D - 31-Jul-2025 10,00,000 1,000 99.45 1,000 99.15
7.69% - Series 20 C - 29-May-2024 10,00,000 4,300 441.85 4,300 451.74
5.47% - Series 206 -19-Aug-2023 10,00,000 – – 100 10.05
6.09% - Series BS-212 A - 27-Aug-2026 10,00,000 – – 300 30.09
6.50% - Series 208 - 17-Sep-2025 10,00,000 – – 1,150 116.68
6.72% - Series 203 A - 09-Jun-2023 10,00,000 – – 900 91.74
6.75% - Series 202 A - 22-May-2023 10,00,000 – – 2,050 208.61
8.03% - Series 147 - 02-May-2026 10,00,000 – – 600 64.04
8.20% - Series 128 - 10-Mar-2025 10,00,000 450 46.75 450 47.59
8.39% - Series 130 C - 19-Apr-2025 10,00,000 200 20.89 200 21.29
REC Limited
5.85% - Series 203 B - 20-Dec-2025 10,00,000 – – 1,100 109.37
Perpetual Bonds - Unsecured, Subordinated

& Non-Convertible#
ICICI Bank
9.15% - Series DMR 18AT (with first Call option

on 20-Jun-2023) 10,00,000 – – 2,647 264.70
9.90% - Series DDE 18AT (with first Call option

on 28-Dec-2023) 10,00,000 – – 3,000 300.00
Carried over 6010.31 8174.62

(Fully Paid
unless (` in (` in
Crores) Crores)
otherwise)


DEBENTURES (Contd.)
State Bank of India
7.72% - Series I (with first Call option on 03-Sep-2026) 1,00,00,000 313 313.00 313 313.00
7.72% - Series II (with first Call option on 18-Oct-2026) 1,00,00,000 400 400.00 400 400.00
9.37% - Series II (with first Call option on 21-Dec-2023) 10,00,000 – – 2,350 235.00
9.56% - Series I (with first Call option on 04-Dec-2023) 10,00,000 – – 7,000 700.00

Non-Convertible
Tranche 416 - 25-Apr-2025 10,00,000 11,250 1216.93 11,250 1149.72
Quoted
Fixed Maturity Plans (at amortised cost)*
DSP Mutual Fund 10 4,99,97,500 51.36 – –
SBI Mutual Fund 10 23,69,88,151 255.23 23,69,88,151 241.25
Exchange Traded Funds (at fair value through

Axis Mutual Fund 1 11,25,00,000 121.91 5,50,00,000 58.00
Unquoted
Target Maturity Index Funds (at fair value through

Axis Mutual Fund 10 15,49,28,153 160.27 1,98,53,868 20.02
DSP Mutual Fund 10 2,49,40,887 26.04 – –
Nippon India Mutual Fund 10 24,38,33,990 251.24 – –
SBI Mutual Fund 10 54,75,53,778 569.97 19,80,19,704 200.51
Carried over 12062.91 12489.40

(Fully Paid
unless (` in (` in
Crores) Crores)
otherwise)
INVESTMENT IN ALTERNATIVE INVESTMENT

FUNDS (at fair value through profit or loss)
Unquoted
Chiratae Ventures India Fund IV 1,00,000 1,125 17.33 923 13.98
Fireside Ventures Investments Fund I 1,00,000 1,335 58.06 1,324 51.27
Fireside Ventures Investments Fund II 1,000 1,40,000 17.47 1,00,000 8.67
Fireside Ventures Investments Fund III 1,00,000 300 3.00 – –
India Foundation Fund Series I 100 3,46,463 3.85 1,63,740 2.15
Roots Ventures I 100 9,13,113 19.54 8,13,113 11.26
Aggregate amount of quoted Investments 8858.57 11480.91
Aggregate amount of unquoted Investments 3323.59 1095.82
Total 12182.16 12576.73
* Investments in Fixed Maturity Plans (FMPs) that are intended to be held by the Company till maturity are classified as
amortised cost. The underlying instruments in the portfolio of these FMPs have minimal churn and are held to receive
contractual cashflows.
** Exchange Traded / Target Maturity Index Funds follow a passive buy and hold investment strategy to receive contractual cashflows
except for meeting redemption and rebalancing requirements. Investment in such funds are classified as FVTOCI as cash flows from
these investments are realised on maturity or upon sale.

As at As at
5. Loans
Others Loans - Employees

– Unsecured, considered good 7.12 5.48 6.77 6.61
TOTAL 7.12 5.48 6.77 6.61
6. Other financial assets
Bank deposits with more than 12 months maturity – 2144.07 – 14.90

Other financial assets
Advances 4.93 – 1.32 –
Security Deposits* 28.39 74.34 27.76 73.47
Deposits other than Security Deposits 2.75 1520.62 1510.27 1501.05
Interest accrued on Loans, Deposits, Investments, etc. 413.38 0.72 522.12 0.16
Other Receivables** 669.22 – 503.94 –
TOTAL 1118.67 3739.75 2565.41 1589.58
* Include deposits to Directors and Key Management Personnel ` 0.06 Crore (2022 - ` 0.08 Crore) (Refer Note 30).
** Comprise receivables on account of government grants, claims, rentals, derivatives designated as hedging instruments,
unbilled revenue, etc.

As at As at
7. Deferred tax
Deferred tax liabilities (Net) 1629.00 1673.47

Less: Deferred tax assets (Net) 52.02 63.53
TOTAL 1576.98 1609.94
Movement in deferred tax liabilities / assets balances (` in Crores)
Acquisitions
Recognised Recognised Reclassified through Effect of
2022-23
Opening in profit or Recognised directly in to profit or business foreign Closing
Balance loss in OCI Equity loss combination exchange Balance
Deferred tax liabilities / assets in

relation to:
On fiscal allowances on property, plant and
equipment, investment property etc. 1639.75 100.78 – – – – – 1740.53
On Excise Duty / National Calamity
Contingent Duty on closing stock 79.21 38.72 – – – – – 117.93
On cash flow hedges 4.82 – (35.57) 2.62 27.72 – – (0.41)
Other timing differences 291.79 (33.94) (8.75) – – – 0.06 249.16
Total deferred tax liabilities 2015.57 105.56 (44.32) 2.62 27.72 – 0.06 2107.21
On fiscal allowances on property, plant
and equipment, etc. 8.70 (1.06) – – – – (0.42) 7.22
On employees’ separation
and retirement etc. 86.28 65.91 5.72 – – – 0.32 158.23
On provision for doubtful
debts / advances 60.32 0.16 – – – – 0.09 60.57
On State and Central taxes etc. 69.62 0.45 – – – – – 70.07
On unabsorbed tax losses
and depreciation 6.47 (2.21) – – – – – 4.26
Other timing differences 166.35 52.19 – – – – 0.83 219.37
Total deferred tax assets before
MAT credit entitlement 397.74 115.44 5.72 – – – 0.82 519.72
Total deferred tax liabilities before
MAT credit entitlement (Net) 1617.83 (9.88) (50.04) 2.62 27.72 – (0.76) 1587.49
Less: MAT credit entitlement 7.89 2.62 – – – – – 10.51
Total deferred tax liabilities (Net) 1609.94 (12.50) (50.04) 2.62 27.72 – (0.76) 1576.98

Notes to the Consolidated Financial Statements (` in Crores)
7. Deferred tax (Contd.) Acquisitions
Recognised Recognised Reclassified through Effect of
2021-22 Opening in profit or Recognised directly in to profit or business foreign Closing
Balance loss in OCI Equity loss combination exchange Balance
Deferred tax liabilities / assets in

relation to:
On fiscal allowances on property, plant and
equipment, investment property etc. 1626.22 13.53 – – – – – 1639.75
On Excise Duty / National Calamity
Contingent Duty on closing stock 72.25 6.96 – – – – – 79.21
On cash flow hedges 1.66 – 9.05 2.44 (8.33) – – 4.82
Other timing differences 326.07 (35.21) 0.93 – – – – 291.79
Total deferred tax liabilities 2026.20 (14.72) 9.98 2.44 (8.33) – – 2015.57
On fiscal allowances on property, plant
and equipment etc. 7.44 0.84 – – – – 0.42 8.70
On employees’ separation and
retirement etc. 76.52 7.42 2.34 – – – – 86.28
On provision for doubtful
debts / advances 60.22 0.10 – – – – – 60.32
On State and Central taxes etc. 64.36 5.26 – – – – – 69.62
On unabsorbed tax losses
and depreciation 6.13 0.34 – – – – – 6.47
Other timing differences 128.55 37.80 – – – – – 166.35
Total deferred tax assets before
MAT credit entitlement 343.22 51.76 2.34 – – – 0.42 397.74
Total deferred tax liabilities before
MAT credit entitlement (Net) 1682.98 (66.48) 7.64 2.44 (8.33) – (0.42) 1617.83
Less: MAT credit entitlement 5.13 2.76 – – – – – 7.89
Total deferred tax liabilities (Net) 1677.85 (69.24) 7.64 2.44 (8.33) – (0.42) 1609.94
The Group has losses of ` 149.68 Crores (2022 - ` 160.09 Crores) for which no deferred tax assets have been recognised. A part of these losses will expire between
financial year 2023-24 to 2041-42.
As at As at
8. Other assets
Capital Advances – 224.56 – 203.62

Advances other than capital advances
Security Deposits
– With Statutory Authorities 0.38 811.75 0.29 809.91
– Others 0.79 151.23 0.66 135.52
Advances to related parties (Refer Note 30) 5.76 – 4.50 –
Other Advances (including advances with statutory
authorities, prepaid expenses, employees, etc.) 1323.82 122.26 1118.60 137.43
Other Receivables* 231.00 2.15 182.03 4.74
TOTAL 1561.75 1311.95 1306.08 1291.22
* Includes receivables on account of Government grants.

As at As at
9. Inventories*
(At lower of cost and net realisable value)

Work-in-progress 961.08 732.41
Finished goods (manufactured) 2268.64 1794.86
Intermediates - Tissue paper and Paperboards 115.09 79.89
TOTAL 11771.16 10864.15
The above includes goods in transit as under:

TOTAL 247.67 308.98
The cost of inventories recognised as an expense includes ` 20.86 Crores (2022 - ` 17.90 Crores) in respect of write-downs of
inventory to net realisable value. During the year reversal of previous write-downs of ` 0.81 Crore (2022 - ` 0.91 Crore) have been
made owing to subsequent increase in realisable value.
Inventories of ` 957.15 Crores (2022 - ` 1067.80 Crores) are expected to be recovered after more than twelve months. The operating
cycle of the Group is twelve months.
* Also Refer Note 20.
10. Biological assets other than bearer plants
Balance at the beginning of the year 109.44 110.05

Biological assets acquired during the year 1.70 3.11
Cost incurred during the year 153.21 113.15
Changes in fair value* 63.67 69.02
Transfer of Biological assets to Inventories (12.38) (4.98)
Biological assets sold during the year (172.67) (181.06)
Effect of foreign exchange translation – 0.15
Balance at the end of the year 142.97 109.44
* Represents aggregate gain / (loss) arising on account of change in fair value less costs to sell during the year.
The Group had 1,73,51,206 numbers of TECHNITUBER® seed potatoes (2022 - 1,26,56,494 numbers).
There were 102486 MT of field generated seed potatoes (2022 - 77968 MT). During the year, output of agricultural produce (potatoes)
is 14522 MT (2022 - 7470 MT).
In October 2022 - 20210 MT (October 2021 - 17168 MT) of seed potatoes were planted and in February / March 2023 - 121825 MT
(February / March 2022 - 85093 MT) of seed potatoes were harvested as a result of quantitative biological transformation.
Estimated amount of contracts remaining to be executed for acquisition/development of biological assets are ` 0.06 Crore
(2022 - ` 1.92 Crores).

(Fully Paid
Number Number
11. Current investments (at fair value through

profit or loss, unless stated otherwise) (Contd.)
In Others
Quoted
Ultra Tech Cement Limited 10 3 … 3 …
Unquoted
SKH Metals Limited 10 40,000 … 40,000 …
Patheja Brothers Forgings and Stampings Limited 10 50,000 … 50,000 …
Jind Textiles Limited 10 5,00,000 … 5,00,000 …
Taib Capital Corporation Limited 10 2,45,000 … 2,45,000 …
DEBENTURES
Quoted
Non-Convertible
7.19% - Series I - 22-Jan-2023 1,000 – – 1,50,000 15.25
7.18% - Series 86 - 19-Feb-2023 1,000 – – 25,00,000 254.56
8.23% - Series 91 - 18-Feb-2024 1,000 20,00,000 201.79 20,00,000 211.32
8.50% - Series II A - 05-Feb-2029 1,000 1,04,000 11.05 1,04,000 12.47
6.82% - 26-Mar-2023 10,000 – – 5,000 5.08
8.01% - Series 107 A - 30-Aug-2023 10,00,000 1,000 100.26 1,000 103.98
8.18% - Series 1 A - 16-Nov-2023 1,000 12,95,560 130.24 12,95,560 135.79
REC Limited
7.22% - Series 1 - 19-Dec-2022 1,000 – – 30,00,000 304.51
8.01% - Series 3 A - 29-Aug-2023 10,00,000 1,000 100.25 1,000 103.96
8.12% - 27-Mar-2027 1,000 60,000 6.20 60,000 6.81
Non-Convertible
9.15% - Series P16 - 05-Sep-2022 10,00,000 – – 300 30.59
Non-Convertible#
ICICI Bank Limited
(with first Call option on 20-Jun-2023) 10,00,000 350 34.96 350 35.20

(Fully Paid
Number Number

INVESTMENT IN CERTIFICATE OF DEPOSITS
Unquoted
Axis Bank Limited - 19-Jul-2023 5,00,000 42,000 2045.45 – –
HDFC Bank Limited - 17-Jul-2023 5,00,000 9,500 462.88 – –
HDFC Bank Limited - 12-Sep-2023 5,00,000 12,000 576.92 – –
ICICI Bank Limited - 19-Jul-2023 5,00,000 5,000 243.51 – –
ICICI Bank Limited - 07-Aug-2023 5,00,000 1,000 48.48 – –
ICICI Bank Limited - 12-Dec-2023 5,00,000 5,000 235.39 – –
Kotak Mahindra Bank Limited - 17-Aug-2023 5,00,000 500 24.18 – –
National Bank for Agriculture and
Rural Development - 23-Jan-2024 5,00,000 1,500 69.95 – –
Small Industries Development
Bank of India - 07-Jun-2023 5,00,000 2,000 98.38 – –
Bank of India - 29-Aug-2023 5,00,000 1,000 48.23 – –
Bank of India - 12-Sep-2023 5,00,000 1,000 48.08 – –
SECURITIES (at amortised cost)
Unquoted
National Savings Certificates
(pledged with Mandi Samiti) (cost ` 2000.00) … …
National Savings Certificate (cost ` 10000.00) … …
Quoted
Exchange Traded Funds
Edelweiss Mutual Fund 1,000 30,00,000 368.72 30,00,000 351.13
Unquoted
Liquid/ Overnight Funds
Axis Mutual Fund 1,000 2,65,373 70.21 4,67,509 110.04
DSP Mutual Fund 1,000 81,780 26.07 5,773 1.74
Carried over 6015.89 1752.65

(Fully Paid
Number Number

Bandhan Mutual Fund
(Formerly IDFC Mutual Fund) 1,000 784 0.21 – –
ICICI Prudential Mutual Fund 100 1,96,704 4.05 61,112 1.93
Kotak Mahindra Mutual Fund 1,000 – – 9,785 4.21
Nippon India Mutual Fund 1,000 2,95,476 161.04 49,780 25.90
SBI Mutual Fund 1,000 4,80,959 168.16 1,009 0.33
UTI Mutual Fund 1,000 31,444 11.52 84,494 29.30
Ultra Short Term Funds
Axis Mutual Fund 10 15,77,979 2.08 – –
SBI Mutual Fund 1,000 2,47,159 127.50 2,47,159 121.04
Low Duration Funds
Aditya Birla Sun Life Mutual Fund 100 87,701 5.36 – –
Axis Mutual Fund 1,000 14,71,091 401.66 14,61,916 378.65
Bandhan Mutual Fund
DSP Mutual Fund 10 17,22,63,805 290.89 17,22,63,805 277.37
ICICI Prudential Mutual Fund 100 1,47,04,689 680.09 60,49,828 264.70
SBI Mutual Fund 1,000 20,14,609 617.49 8,30,697 241.68
Money Market Funds
Axis Mutual Fund 1,000 20,57,053 250.47 – –
Bandhan Mutual Fund
HDFC Mutual Fund 1,000 7,64,367 376.20 2,39,118 111.30
Kotak Mahindra Mutual Fund 1,000 6,53,754 250.28 – –
Nippon India Mutual Fund 1,000 6,60,345 234.26 6,60,345 221.25
SBI Mutual Fund 10 6,65,47,323 250.03 6,65,47,323 236.65
Floating Rate Funds
HDFC Mutual Fund 10 10,07,90,662 427.05 10,07,90,662 404.13
Carried over 13601.93 7333.65

(Fully Paid
Number Number


Short Term Funds
DSP Mutual Fund 10 – – 3,12,12,253 126.54
IDFC Mutual Fund 10 – – 6,58,03,493 322.42
SBI Mutual Fund 10 5,40,50,081 154.07 5,40,50,081 147.17
Banking & PSU Debt Funds
Axis Mutual Fund 1,000 31,86,227 720.37 31,86,227 689.41
Bandhan Mutual Fund
Corporate Bond Funds
Aditya Birla Sun Life Mutual Fund 10 – – 70,15,575 63.27
Kotak Mahindra Mutual Fund 1,000 789 0.26 1,111 0.35
Quoted
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 – –
Current Portion of Non-Current Investment
Quoted
Non-Convertible
Corporation Limited
7.34% - Series 1 - 16-Feb-2023 1,000 – – 3,29,870 33.27
7.19% - Series I - 22-Jan-2023 1,000 – – 5,00,000 50.34
8.01% - Series 1A - 12-Nov-2023 1,000 50,000 5.05 – –
Carried over 15135.99 9287.31

(Fully Paid
Number Number


DEBENTURES (Contd.)
7.18% - Series 86 - 19-Feb-2023 1,000 – – 5,00,000 50.37
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 – –

Non-Convertible
5.20% - Series X 01 - 04-Mar-2025

(with Put and Call option on 04-Mar-2024) 10,00,000 2,000 200.00 – –

Corporation Limited
6.99% - Series E - 11-Nov-2022 10,00,000 – – 700 70.05
7.61% - Series A - 22-Jun-2022 10,00,000 – – 250 25.02
8.40% - Series C - 11-Apr-2022 10,00,000 – – 850 85.00

Development
4.60% - Series 21 E - 29-Jul-2024

(with Put and Call option on 29-Jul-2022) 10,00,000 – – 5,000 499.95
6.70% - Series 20 H - 11-Nov-2022 10,00,000 – – 250 25.00
6.98% - Series 20 G - 19-Sep-2022 10,00,000 – – 2,000 200.00
7.70% - Series 20 D - 13-Jun-2022 10,00,000 – – 500 50.09
7.85% - Series 20 B - 23-May-2022 10,00,000 – – 900 90.13
7.90% - Series 20 A - 18-Apr-2022 10,00,000 – – 600 60.02
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 2,050 205.42 – –
7.10% - Series 169 A - 08-Aug-2022 10,00,000 – – 700 70.02
7.35% - Series 191 - 15-Oct-2022 10,00,000 – – 4,500 450.00
8.45% - Series 181 - 11-Aug-2022 10,00,000 – – 250 25.14
Carried over 15733.16 10988.10

(Fully Paid
Number Number

DEBENTURES (Contd.)
REC Limited
7.09% - Series 152 - 17-Oct-2022 10,00,000 – – 300 29.95
7.09% - Series 185 - 13-Dec-2022 10,00,000 – – 2,000 200.00
Non-Convertible
Tranche 378 - 04-May-2022 10,00,000 – – 500 64.78
Non-Convertible#
State Bank of India
9.37% - Series II (with first Call option on 21-Dec-2023) 10,00,000 2,350 235.00 – –
9.56% - Series I (with first Call option on 04-Dec-2023) 10,00,000 7,000 700.00 – –
ICICI Bank Limited
(with first Call option on 20-Jun-2023) 10,00,000 2,647 264.70 – –
9.90% - Series DDE 18AT
(with first Call option on 28-Dec-2023) 10,00,000 3,000 300.00 – –
Quoted
Fixed Maturity Plans
Aditya Birla Sun Life Mutual Fund 10 – – 11,70,00,000 150.27
HDFC Mutual Fund 10 – – 4,00,00,000 52.17
ICICI Prudential Mutual Fund 10 – – 10,20,00,000 131.07
IDFC Mutual Fund 10 – – 2,20,00,000 27.97
Kotak Mahindra Mutual Fund 10 – – 19,70,00,000 254.79
SBI Mutual Fund 10 – – 19,70,00,000 251.57
Aggregate amount of quoted investments 3414.42 4694.84
Aggregate amount of unquoted investments 13818.44 7569.44
Total 17232.86 12264.28

As at As at
12. Trade receivables (Current)
Secured, considered good 56.56 52.45

Unsecured, considered good 2899.61 2409.45
Which have significant increase in credit risk – –
Credit impaired 197.55 196.87
Less: Allowance for Credit impairment 197.55 196.87
TOTAL 2956.17 2461.90
Trade receivables ageing schedule (` in Crores)
Outstanding for following periods from due date of payment as at

31st March, 2023
Total
Not Due 6 months 1 year 1-2 years 2-3 years 3 years

good 2003.32 926.55 21.07 0.66 4.52 0.05 2956.17
SUB-TOTAL 2003.32 928.94 34.15 17.05 34.35 135.91 3153.72
TOTAL 2956.17
Outstanding for following periods from due date of payment as at

31st March, 2022
Total
Not Due 6 months 1 year 1-2 years 2-3 years 3 years

good 1564.12 883.51 11.75 5.35 (0.61) (2.22) 2461.90
SUB-TOTAL 1564.12 885.21 23.43 44.49 17.62 123.90 2658.77
TOTAL 2461.90

As at As at
13. Cash and cash equivalents@
Balances with Banks

Current accounts 453.39 261.20
Deposit accounts 5.08 3.12
Cheques, drafts on hand 1.39 0.89
Cash on hand 3.49 6.16
TOTAL 463.35 271.37
@ 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.
14. Other bank balances
Earmarked balances 239.43 224.49

In deposit accounts* 4177.41 4158.56
TOTAL 4416.84 4383.05
* Represents deposits with original maturity of more than 3 months having remaining maturity of less than 12 months from the Balance
Sheet date.

(No. of Shares) (` in Crores) (No. of Shares) (` in Crores)
15. 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 12,42,80,17,741 1242.80 12,32,32,55,931 1232.33
A) Reconciliation of number of
Ordinary Shares outstanding
As at beginning of the year 12,32,32,55,931 1232.33 12,30,88,44,231 1230.88
Add: Issue of Shares on exercise
of Options 10,47,61,810 10.48 1,44,11,700 1.44
As at end of the year 12,42,80,17,741 1242.80 12,32,32,55,931 1232.33
B) Shareholders holding more than 5% of the Ordinary Shares in the Company

(No. of Shares) (%) (No. of Shares) (%)
Tobacco Manufacturers (India) Limited 2,97,83,47,320 23.96 2,97,83,47,320 24.17

Life Insurance Corporation of India 1,89,68,61,285 15.26 1,95,02,36,958 15.83
Specified Undertaking of the
Unit Trust of India 97,45,31,427 7.84 97,45,31,427 7.91
C) Shareholding of Promoters : Nil
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
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.
F) Shares reserved for issue under Options

As at As at
(No. of Shares) (No. of Shares)
Ordinary Shares of ` 1.00 each 13,20,94,790 22,76,87,310
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:
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).

As at As at
16. Non-current borrowings
Unsecured
Term loans
– From Others 0.21 0.31
Deferred payment liabilities
– Sales tax deferment loans 3.28 4.54
TOTAL 3.49 4.85
Terms of borrowings are as under:

Term Loans from Others:
Interest free loan repayable on the basis of 33% (2022 - 33%) of the net profits earned by a subsidiary or the residual balance,
whichever is less.
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 Term Loans Deferred

Payment Payment
Liabilities Liabilities
In the first year (Refer Note 17B) 0.10 1.26 – 0.74

Current maturities of long-term debt 0.10 1.26 – 0.74
In the second year 0.21 1.52 – 1.26
In the third to fifth year – 1.76 – 3.28
After five years – – 0.31 –
Non-current borrowings 0.21 3.28 0.31 4.54
As at As at
17A. Lease liabilities*
Lease liabilities 53.86 213.37 50.18 193.67

TOTAL 53.86 213.37 50.18 193.67
* Refer Note 28(xi)

Movement of Lease Liabilities during the year
Opening Lease Liabilities 243.85 261.02
New Leases recognised 87.31 46.28
Remeasurements and withdrawals (4.83) (4.44)
Interest expense on Lease Liabilities 20.35 21.21
Payment of Lease Liabilities made (Including interest) (79.46) (80.23)
Foreign Currency Translation Reserve adjustment 0.01 0.01
Closing balance of Lease Liabilities 267.23 243.85

As at As at
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.) 416.87 144.50
TOTAL 416.87 144.50

Current
Interest accrued 2.39 1.73
Unpaid dividend* 239.07 224.13
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.) 2165.95 1586.69
TOTAL 2407.71 1812.85
* 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.
As at As at
18. Provisions
Provision for employee benefits [Refer Note 28(vi)]

Retirement benefits 74.97 180.02 58.18 151.14
Other benefits 25.59 78.90 21.38 69.62
Provision for standard assets – 0.29 – 0.29
TOTAL 100.56 259.21 79.56 221.05

As at As at
19. Other liabilities
Non-current
Advances received from customers* 82.84 36.43
TOTAL 82.84 36.43

Current
Statutory liabilities 4142.21 3718.24
Advances received from customers* 1294.84 1278.17
Others (includes deferred revenue, accruals, customer deposits etc.) 134.30 119.62
TOTAL 5571.35 5116.03
* Includes revenue received in advance.
20. Current borrowings
Secured
Loans from Banks
Cash credit facilities* 33.96 –
Unsecured
Current maturities of long-term debt (Refer Note 16) 1.36 0.74
TOTAL 35.32 0.74
* 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) 66.16 42.30
TOTAL 66.16 42.30
21B. Current Tax liabilities (Net)
Current taxation (net of advance payment) 911.62 687.09
TOTAL 911.62 687.09

22A. Revenue from operations
Sale of Products 70017.08 60566.82

Sale of Services 5809.50 4051.41
Gross Revenue from sale of products and services*
[including Excise Duty / National Calamity Contingent Duty / Health Risk Tax
of ` 5390.00 Crores (2022 - ` 4489.67 Crores)] 75826.58 64618.23
Other Operating Revenues# 691.63 586.73
TOTAL 76518.21 65204.96
# Includes Government grants of ` 311.41 Crores (2022 - ` 275.87 Crores) on account of Fiscal and Exports incentives, etc.
22B. Gross revenue from sale of products and services*
FMCG
– Cigarettes etc. 31267.46 26158.31
– Branded Packaged Food Products 15768.10 13199.59
– Others (Education and Stationery Products,
Personal Care Products, Safety Matches, Agarbattis etc.) 3341.23 2793.53
Hotels
– Income from Sale of Services 2672.79 1341.02
Agri Business
– Unmanufactured Tobacco 2510.93 1647.25
– Other Agri Products and Commodities
(Wheat, Rice, Spices, Coffee, Soya etc.) 9850.69 10544.76
Paperboards, Paper and Packaging
– Paperboards and Paper 6562.04 5576.31
– Printed Materials 671.65 627.48
Others
– Others 3181.69 2729.98
TOTAL 75826.58 64618.23

23. Other income
Interest income 1534.00 1082.63

Dividend income 0.02 0.01
Other non-operating income 153.13 131.16
Other gains and losses 293.34 622.55
TOTAL 1980.49 1836.35
Interest income:
a) Deposits with banks etc. - carried at amortised cost 462.79 227.67
b) Financial assets:
– mandatorily measured at FVTPL 221.96 105.37
– measured at amortised cost 723.09 741.72
– measured at FVTOCI 121.29 3.79
c) Others (from statutory authorities etc.) 4.87 4.08
TOTAL 1534.00 1082.63
Dividend income:
a) Equity instruments measured at FVTOCI held at the end of
reporting period 0.01 0.01
b) Other investments 0.01 –
TOTAL 0.02 0.01
Other gains and losses:

Net foreign exchange gain / (loss) 37.00 52.21
Net gain / (loss) arising on financial instruments measured at amortised
cost / mandatorily measured at FVTPL (Refer Note 31)* 257.76 570.34
Impairment of investment in joint venture [Refer Note 28(ix)] (1.42) –
TOTAL 293.34 622.55
* Includes ` 157.29 Crores (2022 - ` 195.72 Crores) being net gain / (loss) on sale of investments.
24. Employee benefits expense
Salaries and wages 4885.49 4327.05

Contribution to Provident and other funds 291.46 253.11
Share based payments to employees {Includes cash-settled share based
payments ` 214.31 Crores [2022 - ` 29.46 Crores]} 274.72 62.63
Staff welfare expenses 302.60 258.86
5754.27 4901.65
Less: Recoveries made / reimbursements received 18.05 11.10
TOTAL 5736.22 4890.55

25. Finance costs
Interest expense:
– On lease liabilities 20.26 21.12
– On financial liabilities measured at amortised cost 9.70 4.21
– Others (to statutory authorities etc.) 13.24 14.03
TOTAL 43.20 39.36
26. Other expenses
Power and fuel 1232.34 889.77

Consumption of stores and spare parts 454.75 361.37
Contract processing charges 1013.39 859.17
Rent 266.46 213.77
Rates and taxes 165.55 130.80
Insurance 171.24 158.42
Repairs
– Buildings 108.62 63.34
– Machinery 334.48 274.81
– Others 86.08 58.89
Maintenance and upkeep 329.03 265.38
Outward freight and handling charges 1680.39 1652.01
Warehousing charges 265.80 229.52
Advertising / Sales promotion 1173.21 995.62
Market research 156.35 162.75
Design and product development 48.37 36.49
Hotel reservation / Marketing expenses 58.72 28.10
Retail accessories 226.15 207.57
Brokerage and discount - sales 17.82 23.55
Commission to selling agents 21.26 20.43
Doubtful and bad debts 5.96 14.98
Bank and credit card charges 34.57 20.63
Information technology services 233.26 192.83
Travelling and conveyance 370.72 235.29
Training and development 28.11 18.42
Legal expenses 41.14 31.36
Consultancy / Professional fees 629.89 480.53
Postage, telephone etc. 31.77 28.01
Printing and stationery 17.87 12.91
(Gain) / Loss on sale of property, plant and equipment - Net 4.76 (55.89)
Loss on sale of stores and spare parts - Net 1.45 4.71
Miscellaneous expenses 1319.67 1117.59
TOTAL 10529.93 8734.06

27. Income tax expenses
A. Amount recognised in profit or loss

Current tax
Income tax for the year 6449.33 5280.88
Adjustments / (credits) related to previous years - Net 1.57 25.70
Total current tax 6450.90 5306.58
Deferred tax
Deferred tax for the year 1.78 (33.72)
Adjustments / (credits) related to previous years - Net (11.66) (32.76)
MAT credit entitlement (2.62) (2.76)
Total deferred tax (12.50) (69.24)
TOTAL 6438.40 5237.34
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
Remeasurement gains / (losses) on defined benefit plans 5.72 (8.12)
Related to designated portion of hedging instruments in cash flow hedges (5.34) 3.00
0.38 (5.12)
On items that will be reclassified to profit or loss
Related to designated portion of hedging instruments in cash flow hedges 13.19 (3.72)
Debt instruments through other comprehensive income 8.75 (0.93)
21.94 (4.65)
TOTAL 22.32 (9.77)
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 2.62 2.44
TOTAL 2.62 2.44
D. Reconciliation of effective tax rate

The income tax expense for the year can be reconciled to the accounting profit as follows:
Income tax expense calculated @ 25.168% (2022: 25.168%) 6522.31 5219.97
Effect of tax relating to uncertain tax positions 26.72 27.58
Effect of different tax rate on certain items (165.89) (82.89)
Difference in tax rates of subsidiary companies 45.95 43.30
Effect of income not taxable (85.04) (90.77)
Other differences 98.34 123.83
Total 6442.39 5241.02
Adjustments recognised in the current year in relation to the
current tax of prior years (3.99) (3.68)
Income tax recognised in profit or loss 6438.40 5237.34
The tax rate of 25.168% (22% + surcharge @ 10% and cess @ 4%) used for the year 2022-23 and 2021-22 is the corporate tax rate applicable on taxable
profits under the Income-tax Act, 1961.

28. Additional Notes to the Consolidated Financial Statements
(i) Exceptional items represent proceeds received in partial settlement of the insurance claim towards leaf tobacco stocks, which
were destroyed due to fire at a third party owned warehouse in an earlier year.
(ii) Earnings per share: 2023 2022
Earnings per share has been computed as under:

(a) Profit for the year (` in Crores) 19191.66 15242.66
(b) Weighted average number of Ordinary shares outstanding for the purpose of
12,38,15,12,709 12,31,65,71,748
basic earnings per share
(c) Effect of potential Ordinary shares on Employee Stock Options outstanding 3,28,14,400 54,47,370
(d) Weighted average number of Ordinary shares in computing diluted earnings
12,41,43,27,109 12,32,20,19,118
per share [(b) + (c)]
(e) Earnings per share on profit for the year
(Face Value ` 1.00 per share)
– Basic [(a) / (b)] ` 15.50 ` 12.37
– Diluted [(a) / (d)] ` 15.46 ` 12.37
(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 Percentage of Percentage of

Incorporation ownership ownership
interest as at interest as at
ITC Infotech India Limited India 100 100
ITC Infotech Limited
(a 100% subsidiary of ITC Infotech India Limited) UK 100 100
ITC Infotech (USA), Inc.
(a 100% subsidiary of ITC Infotech India Limited) USA 100 100
Indivate Inc.
(a 100% subsidiary of ITC Infotech (USA), Inc.) USA 100 100
ITC Infotech Do Brasil LTDA.
(a 100% subsidiary of ITC Infotech India Limited w.e.f.
10.10.2022) Brazil 100 –
ITC Infotech Malaysia SDN. BHD.
(a 100% subsidiary of ITC Infotech India Limited
w.e.f. 03.02.2023) Malaysia 100 –
ITC Infotech France SAS
08.02.2023) France 100 –
ITC Infotech GmbH
10.03.2023) Germany 100 –
Surya Nepal Private Limited Nepal 59 59
Technico Agri Sciences Limited India 100 100
Technico Pty Limited Australia 100 100
Technico Technologies Inc.
(a 100% subsidiary of Technico Pty Limited) Canada 100 100

28. Additional Notes to the Consolidated Financial Statements (Contd.)

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 (formerly known
as ITC Investments & Holdings Limited)* India 100 100
(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
(w.e.f. 03.03.2023) India 100 –
* The Ministry of Corporate Affairs, Government of India, approved the change of name of ITC Investments & Holdings Limited to ITC
Integrated Business Services Limited with effect from 20th December, 2022.
The financial statements of all subsidiaries, considered in the Consolidated Accounts, are drawn upto 31st March other than for
Surya Nepal Private Limited where it is upto 14th March, based on the local laws of Nepal where the company is incorporated.
ITC Infotech Malaysia SDN. BHD. was incorporated during the year on 3rd February, 2023. There have been no transactions in the
company during the period ended 31st March, 2023 and hence the financial statements have not been prepared by the said subsidiary.
(b) Interests in Joint Ventures:
The Group’s interests in jointly controlled entities (incorporated Joint Ventures) are:

Espirit Hotels Private Limited (Refer Note 28(viii)) India 26 26
Logix Developers Private Limited (Refer Note 28(ix)) India 27.90 27.90
(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 Accounts, are drawn upto 31st March.

(c) Investments in Associates:
The Group’s Associates are:

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 33.42# 27.34#
(w.e.f. 27.10.2022) (Refer Note 28(x)) India 22.00# –
*associates of Russell Credit Limited

# on a fully diluted basis
The financial statements of all Associates, considered in the Consolidated Accounts, are drawn upto 31st March.
(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.
(iv) Contingent liabilities and commitments:
(a)
Contingent liabilities:
Claims against the Group not acknowledged as debts ` 945.12 Crores (2022 - ` 946.98 Crores), including interest
on claims, where applicable, estimated to be ` 292.26 Crores (2022 - ` 295.25 Crores), including share of associates
` 0.15 Crore (2022 - ` 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 ` 604.63 Crores (2022 - ` 616.65 Crores), including interest on claims, where applicable,
estimated to be ` 265.04 Crores (2022 - ` 272.19 Crores), including share of associates ` 0.12 Crore (2022 - ` 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 ` 241.71 Crores (2022 - ` 238.39 Crores), including interest on claims, where applicable,
estimated to be ` 15.09 Crores (2022- ` 11.22 Crores) including share of associates ` 0.03 Crore (2022 - ` 0.03 Crore).
Third party claims arising from disputes relating to contracts aggregating ` 31.79 Crores (2022 - ` 29.37 Crores), including
interest on claims, where applicable, estimated to be ` 0.17 Crore (2022 - ` 0.10 Crore).
Other matters aggregating ` 66.99 Crores (2022 - ` 62.57 Crores), including interest on other matters, where applicable,
estimated to be ` 11.96 Crores (2022 - ` 11.74 Crores).

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 on theoretical production of cigarettes. In all these
proceedings, the authorities applied an input-output ratio allegedly submitted by SNPL in the year 1990-91 and arrived at
a theoretical production and demanded tax / duty on the differential production / turnover. This, despite the fact that SNPL’s
cigarette factory was under ‘physical control’ of the Excise authorities and cigarettes produced were duly accounted for
and certified as such by the Excise authorities.
The Revenue Authorities for the first time 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 submitted in the year 1990-91. SNPL
challenged these excise demands before the Hon’ble Supreme Court of Nepal through a writ petition. A division bench of
the Hon’ble Supreme Court of Nepal decided the matter in favour of SNPL (the “Division Bench Judgement”) and rejected
the above basis of theoretical production. The Ministry of Finance of Nepal filed a review petition before the Full Bench of
Hon’ble Supreme Court of Nepal seeking review of the judgement of Division Bench. The Full Bench after hearing both the
sides at length upheld the judgement of Division Bench by its order dated October 29, 2009.
Similar demands had been raised for other financial years viz., Excise Demands for FY 1998-99 to FY 2002-03 and
Income Tax demand for FY 2001-02, which were also challenged by SNPL before the Hon’ble Supreme Court of Nepal by
way of writ petitions and the Court was pleased to allow all the writ petitions setting aside the demands.
Further, the Inland Revenue Department had decided administrative review petitions in favour of SNPL setting aside Value
Added Tax demands for the financial years 2001-02 and 2007-08 and Income Tax demand for the FY 2005-06 following
the aforesaid decisions of the Hon’ble Supreme Court of Nepal.
During the pendency of the aforementioned review petition before the Hon’ble Supreme Court of Nepal and thereafter, the
Revenue Authorities raised demands and issued a SCN, in the same subject matter of theoretical production for different
years (as listed below), which were also challenged by SNPL by way of writ petitions before Hon’ble Supreme Court of
Nepal between the years 2007 to 2010:
1. Excise demand letters for ` 17.38 Crores [Nepalese Rupee (NRs.) 27.80 Crores] relating to the financial years 2003-04
to 2006-07.
2. Excise Show Cause Notice for ` 12.28 Crores (NRs. 19.65 Crores) relating to the financial year 2007-08.
3. Value Added Tax (VAT) demand letters for ` 10.93 Crores (NRs. 17.49 Crores) relating to financial years 2002-03 to
2006-07.
4. Income Tax demand letters for ` 13.45 Crores (NRs. 21.52 Crores) relating to financial years 2002-03 and 2003-04.
SNPL’s writ petitions with regard to various tax demands and a SCN mentioned hereinabove were disposed of by the
Hon’ble Supreme Court of Nepal on 15th April, 2021 holding that SNPL should avail the alternate remedy by way of appeal
to the Inland Revenue Department (IRD). SNPL is currently pursuing legal remedy in line with the observations / directions
provided in the judgement of the Hon’ble Supreme Court of Nepal.
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 that is likely to arise, particularly in light of the fact that the issue underlying these
demands has already been settled by the Hon’ble Supreme Court of Nepal in favour of SNPL.
No legal recourse is required to be pursued in respect of a Show Cause Notice relating to the financial year 2007-08, since
no demand has been issued.
It is not practicable for the Group to estimate the closure of these issues and the consequential timings of cash flows, if any,
in respect of the above.

(b) Uncalled liability on investments is ` 35.56 Crores (2022 - ` 29.74 Crores).
(c) Commitments: Estimated amount of contracts remaining to be executed on capital accounts and not provided for are
` 2113.07 Crores (2022 - ` 2228.44 Crores) for the Group, which includes share of joint ventures ` 8.52 Crores
(2022 - ` 13.38 Crores).
(v) Research and Development expenses for the year amount to ` 161.36 Crores (2022 - ` 143.65 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 requirement of this standard except for those subsidiaries which are incorporated outside
India who have determined the valuation / provision for employee benefits as per requirements of their respective countries. In the
opinion of the management, the impact of this deviation is not considered material.
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 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 and Pension Benefits are funded, Gratuity Benefits are both funded as well unfunded; 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.
(a) Defined Benefit Plans:
As per Actuarial Valuations as on 31st March, 2023 and recognised in the financial statements in respect of Employee Benefit
Schemes:
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 as at year end. The Group makes regular contributions to these Defined
Benefit Plans. Additional contributions are made to these plans as and when required based on actuarial valuation.
Risk Management
The Defined Benefit Plans expose the Group 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 Plans 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.


Partially Funded Unfunded Unfunded Funded Funded Unfunded Unfunded
Funded
I Components of Employer Expense
– Recognised in the Statement of
Profit and Loss
1 Current Service Cost 43.12 39.58 0.54 18.21 45.70 38.95 0.57 14.17
2 Past Service Cost – – 0.17 – – – – –
3 Net Interest Cost (1.32) (1.42) 0.41 10.33 1.87 (0.86) 0.39 8.89
4 Total expense recognised in the
Statement of Profit and Loss 41.80 38.16 1.12 28.54 47.57 38.09 0.96 23.06
– Remeasurements recognised in
5 Return on plan assets (excluding
amounts included in net interest cost) 14.50 1.22 – – (7.16) (6.64) – –
6 Effect of changes in demographic
assumptions – – – (0.01) 4.46 (1.57) (0.08) 0.09
7 Effect of changes in financial
assumptions (14.26) (14.79) (0.39) (3.32) (4.24) (8.35) (0.24) (0.23)
8 Changes in asset ceiling (excluding
interest income) – – – – – – – –
9 Effect of experience adjustments (1.24) 32.63 0.22 9.50 (37.64) 19.32 0.04 10.18
10 Total remeasurements included in
Other Comprehensive Income (1.00) 19.06 (0.17) 6.17 (44.58) 2.76 (0.28) 10.04
11 Total defined benefit cost
recognised in the Statement of Profit
and Loss and Other Comprehensive
Income (4+10) 40.80 57.22 0.95 34.71 2.99 40.85 0.68 33.10
The current service cost, past service cost and net interest cost for the year, as applicable, pertaining to Pension and Gratuity
expenses have been recognised in “Contribution to Provident and other funds” and Leave Encashment in “Salaries and
wages” under Note 24. The remeasurements of the net defined benefit liability are included in Other Comprehensive Income.
II Actual Returns 46.39 30.36 – – 62.68 34.38 – –

III Net Asset / (Liability) recognised
in Balance Sheet
Obligation 925.28 509.40 6.96 176.54 929.62 478.30 6.60 164.55
2 Fair Value of Plan Assets 888.56 480.39 – – 916.94 457.31 – –
3 Status [Surplus / (Deficit)] (36.72) (29.01) (6.96) (176.54) (12.68) (20.99) (6.60) (164.55)
4 Restrictions on Asset Recognised – – – – – – – –
5 Net (Liability) recognised in Balance
Sheet (42.48) (29.01) (6.96) (176.54) (17.18) (20.99) (6.60) (164.55)
a. Current (25.57) (25.06) (0.90) (23.44) (15.08) (17.15) (0.60) (25.35)
b. Non-Current (16.91) (3.95) (6.06) (153.10) (2.10) (3.84) (6.00) (139.20)
6. Net Asset recognised in Balance Sheet 5.76 – – – 4.50 – – –
a. Current 5.76 – – – 4.50 – – –
b. Non-Current – – – – – – – –




Funded
IV Change in Defined Benefit

Obligation (DBO)
1 Present Value of DBO at the
beginning of the year 929.62 478.30 6.60 164.55 972.33 458.12 6.87 153.11
2 Current Service Cost 43.12 39.58 0.54 18.21 45.70 38.95 0.57 14.17
3 Past Service Cost – – 0.17 – – – – –
4 Interest Cost 59.57 30.16 0.41 10.33 57.39 26.88 0.39 8.89
5 Re-measurement Gains / (Losses):
a. Effect of changes in demographic
assumptions – – – (0.01) 4.46 (1.57) (0.08) 0.09
b. Effect of changes in financial
assumptions (14.26) (14.79) (0.39) (3.32) (4.24) (8.35) (0.24) (0.23)
c. Changes in asset ceiling (excluding
interest income) – – – – – – – –
d. Effect of experience adjustments (1.24) 32.63 0.22 9.50 (37.64) 19.32 0.04 10.18
6 Curtailment Cost / (Credits) – – – – – – – –
7 Settlement Cost / (Credits) – – – – – – – –
8 Liabilities assumed in business
combination – – – – – – – –
9 Effects of transfer In / (Out) 15.56 0.53 – 0.05 (0.07) – – –
10 Benefits Paid (107.09) (57.01) (0.59) (22.77) (108.31) (55.05) (0.95) (21.66)
11 Present Value of DBO at the end of
the year 925.28 509.40 6.96 176.54 929.62 478.30 6.60 164.55

V Best Estimate of Employers’ Expected
Contribution for the next year
– Pension 87.17 72.02
– Gratuity 75.30 66.02



Funded
VI Change in Fair Value of Assets
1 Plan Assets at the
beginning of the year 916.94 457.31 – – 861.78 436.23 – –
2 Assets acquired in Business
Combination – – – – – – – –
3 Interest Income 60.89 31.58 – – 55.52 27.74 – –
4 Re-measurement Gains / (Losses) on
plan assets (14.50) (1.22) – – 7.16 6.64 – –
5 Actual Group Contributions 32.38 49.73 – – 100.86 41.75 – –
6 Benefits Paid (107.09) (57.01) – – (108.31) (55.05) – –
7 Effects of transfer In / (Out) (0.06) – – – (0.07) – – –
8 Plan Assets at the end of the year 888.56 480.39 – – 916.94 457.31 – –
Discount Rate Discount Rate

(%) (%)
VII Actuarial Assumptions
1 Pension 7.50 6.75
2 Gratuity 7.50 6.75
3 Leave Encashment 7.50 6.75
The estimates of future salary increases, generally between 4% to 6% for the Company (being the largest component
of the Group), considered in actuarial valuations take account of inflation, seniority, promotion and other relevant factors
such as supply and demand factors in the employment market.

VIII Major Category of Plan Assets as a %
of the Total Plan Assets
1 Government Securities / Special Deposit with RBI 14.86% 17.67%
2 High Quality Corporate Bonds 10.25% 10.94%
3 Insurer / Citizen Investment Trust Managed Funds* 66.71% 62.88%
4 Mutual Funds 3.92% 4.36%
5 Cash and Cash Equivalents 4.26% 4.15%
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 participating companies.

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 optimise returns within acceptable risk parameters, the plan assets are well diversified.

Funded
X Net Asset / (Liability) recognised in
Balance Sheet (including experience
adjustment impact)
Obligation 925.28 509.40 6.96 176.54 929.62 478.30 6.60 164.55
2 Fair Value of Plan Assets 888.56 480.39 – – 916.94 457.31 – –
3 Status [Surplus / (Deficit)] (36.72) (29.01) (6.96) (176.54) (12.68) (20.99) (6.60) (164.55)
4 Experience Adjustment of Plan Assets
[Gain / (Loss)] (14.50) (1.22) – – 7.16 6.64 – –
5 Experience Adjustment of obligation
[(Gain) / Loss] (1.24) 32.63 0.22 9.50 (37.64) 19.32 0.04 10.18
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. While each of these sensitivities holds all
other assumptions constant, in practice such assumptions rarely change in isolation and the asset value changes may offset
the impact to some extent. For presenting the sensitivities, the present value of the Defined Benefit Obligation has been
calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in
calculating the Defined Benefit Obligation presented above. There was no change in the methods and assumptions used in
the preparation of the Sensitivity Analysis from previous year.
(` in Crores)
DBO as at 31st March, 2023 DBO as at 31st March, 2022
1 Discount Rate + 100 basis points 1530.08 1491.38
2 Discount Rate - 100 basis points 1715.52 1678.51
3 Salary Increase Rate + 1% 1708.10 1669.68
4 Salary Increase Rate – 1% 1533.68 1493.21
Maturity Analysis of the Benefit Payments
1 Year 1 244.36 259.19

2 Year 2 236.41 179.57
3 Year 3 219.34 196.14
4 Year 4 210.04 199.15
5 Year 5 145.67 179.46
6 Next 5 Years 595.80 528.13
(b) Amounts towards Defined Contribution Plans have been recognised under “Contribution to Provident and other funds” in Note
24: - ` 211.50 Crores (2022 - ` 167.45 Crores).

(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:
Net Assets Share in Profit or (Loss) Share in Other Share in Total

Comprehensive Income Comprehensive Income
As a % of Amount As % of Amount As % of Amount As % of Amount

Name of the Entity
Consolidated (` in Crores) Consolidated (` in Crores) Consolidated (` in Crores) Consolidated (` in Crores)
Net Assets Profit or Other Total
(Loss) Comprehensive Comprehensive
Income Income
Parent
ITC Limited 90.15% 62688.66 93.47% 18205.11 32.16% 29.26 93.19% 18234.37
Subsidiary
Indian
1 Russell Credit
Limited 1.34% 934.93 0.20% 38.09 18.62% 16.95 0.28% 55.04
2 Greenacre
Holdings Limited 0.09% 65.01 0.01% 1.99 (0.01%) (0.01) 0.01% 1.98
3 Wimco Limited … 3.44 … 0.16 0.04% 0.04 … 0.20
4 Prag Agro Farm

Limited … 0.93 … (0.05) – – … (0.05)
5 Pavan Poplar
Limited … 0.30 … (0.03) – – … (0.03)
6 Technico Agri
Sciences Limited 0.21% 144.40 0.21% 41.38 0.04% 0.04 0.21% 41.42
7 Srinivasa Resorts
Limited 0.10% 66.52 0.03% 5.13 (0.02%) (0.02) 0.03% 5.11
8 Fortune Park
Hotels Limited 0.04% 26.68 0.03% 5.34 (0.15%) (0.14) 0.03% 5.20
9 Bay Islands
Hotels Limited 0.03% 21.10 0.01% 1.92 – – 0.01% 1.92
10 ITC Infotech India

Limited 1.80% 1250.93 1.81% 353.25 19.37% 17.63 1.90% 370.88
11 Gold Flake
Corporation
Limited 0.04% 24.60 … 0.42 – – … 0.42
12 ITC Integrated
Business
Services Limited
(erstwhile ITC
Investments &
Holdings Limited) 0.01% 5.26 … 0.04 – – … 0.04
13 MRR Trading
& Investment
Company Limited … 0.02 … … – – … …


Name of the Entity As a % of Amount As % of Amount As % of Amount As % of Amount

Income Income
Indian
14 Landbase India
Limited 0.36% 253.11 0.05% 9.68 (0.09%) (0.08) 0.05% 9.60
15 North East
Nutrients Private
Limited 0.12% 81.32 0.06% 12.13 0.13% 0.12 0.06% 12.25
16 ITC IndiVision
Limited 0.43% 300.94 (0.01%) (1.18) – – (0.01%) (1.18)
17 ITC Fibre
Innovations Limited … 0.08 … (0.04) – – … (0.04)
Foreign
1 Technico Pty
Limited 0.08% 53.60 0.03% 5.80 (1.74%) (1.58) 0.02% 4.22
2 Technico
Technologies Inc. … 1.99 … 0.25 – – … 0.25
3 Technico Asia
Holdings Pty
Limited – – – – – – – –
4 Technico
Horticulture
(Kunming) Co.
Limited 0.03% 22.59 0.01% 2.10 – – 0.01% 2.10
5 WelcomHotels
Lanka (Private)
Limited 2.82% 1964.03 0.04% 7.90 29.36% 26.73 0.18% 34.63
6 ITC Infotech
Limited 0.13% 87.64 0.07% 14.09 – – 0.07% 14.09
7 ITC Infotech
(USA), Inc. 0.42% 289.14 0.16% 31.22 – – 0.16% 31.22
8 Indivate Inc. 0.01% 7.64 0.03% 6.47 – – 0.03% 6.47
9 ITC Infotech Do
Brasil LTDA. … 2.17 … 0.19 – – … 0.19
10 ITC Infotech
France SAS 0.04% 26.77 … 0.01 – – … 0.01
11 ITC Infotech
GmbH 0.04% 25.43 – – – – – –
12 Surya Nepal
Private Limited 0.67% 468.44 2.06% 401.24 (1.23%) (1.12) 2.04% 400.12
Non-Controlling
Interest in all
subsidiaries 0.55% 383.53 1.46% 285.06 (0.81%) (0.74) 1.45% 284.32


Name of the Entity As a % of Amount As % of Amount As % of Amount As % of Amount

Income Income
Associates
Indian
1 International
Travel House
Limited 0.10% 72.88 0.07% 13.90 (0.24%) (0.22) 0.07% 13.68
2 Gujarat Hotels
Limited 0.03% 19.55 0.01% 1.95 – – 0.01% 1.95
3 Russell
Investments
Limited 0.04% 31.28 0.01% 0.84 4.49% 4.09 0.03% 4.93
4 Divya
Management
Limited 0.01% 7.71 … 0.14 … … … 0.14
5 Antrang Finance
Limited 0.01% 5.05 … 0.11 … … … 0.11
6 ATC Limited 0.01% 7.73 0.01% 0.60 0.01% 0.01 … 0.61
7 Delectable
Technologies
Private Limited 0.01% 6.49 … (0.55) … … … (0.55)
8 Mother Sparsh
Baby Care
Private Limited 0.05% 31.72 (0.01%) (1.74) … … (0.01%) (1.74)
Joint Ventures
Indian
ITC Essentra
1
Limited 0.16% 109.01 0.17% 32.38 0.07% 0.06 0.17% 32.44
Maharaja
2 Heritage Resorts
Limited – – – – – – – –
Espirit Hotels
3
Private Limited 0.07% 46.17 … … – – … …
Logix Developers
4
Private Limited – – 0.01% 1.42 – – 0.01% 1.42
Total 100.00% 69,538.79 100.00% 19,476.72 100.00% 91.02 100.00% 19,567.74

(viii) The Company on 7th April, 2023 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 with effect
from the said date.
(ix)
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 instalments 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. Consequently, as a matter of prudence, LDPL had de-recognised the leasehold land / assets as well as
adjusted / reversed the lease liabilities towards NOIDA in accordance with the terms of the sub-lease, as an adjusting event
in terms of Ind AS 10 – “Events after the Reporting Period” while approving its financial statements for the year ended 31st
March 2022, on 29th September, 2022.
As the accounting treatment pertaining to the aforesaid event was given effect to by LDPL in its financial statements for
the year ended 31st March, 2022 subsequent to the approval of the consolidated financial statements of the Group for the
year ended 31st March, 2022, the consequential impact has been considered in these consolidated financial statements.
The financial statements of LDPL for the year ended 31st March, 2023 are yet to be approved by its Board of Directors.
(x) The Company on 27th October, 2022 acquired, in the third tranche, 1000 Compulsorily Convertible Preference Shares of
` 10 / - each of Mother Sparsh Baby Care Private Limited (Mother Sparsh), consequent to which the Company’s
shareholding in Mother Sparsh aggregated 22.00% of its share capital on a fully diluted basis. Accordingly, Mother Sparsh
became an associate of the Company with effect from the aforesaid date and the investment is being carried at cost.
(xi) 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 parties 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.

The amount of Right of Use 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 ` 441.30 Crores (2022 - ` 376.34 Crores) [including
payments of ` 359.11 Crores (2022 - ` 295.32 Crores) in respect of short-term / low-value leases and variable lease
payments of ` 2.73 Crores (2022 - ` 0.79 Crore)].
The sensitivity of variable lease payments and effect of extension / termination options not included in measurement of
lease liabilities is not material.
The undiscounted maturities of lease liabilities over the remaining lease term is as follows:
(` in Crores)
Not later than three years 169.25 154.66
Later than three years and not later than ten years 125.63 115.37
Later than ten years and not later than twenty-five years 124.19 118.03
Later than twenty-five years and not later than fifty years 92.64 98.43
Later than fifty years 26.39 27.27
As a Lessor
The Group has leased out its investment properties etc. under operating lease for periods ranging upto 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.
The undiscounted minimum lease payments to be received over the remaining non-cancellable term on an annual basis
are as follows:
(` in Crores)
1st year 0.90 16.67
2nd year 0.33 0.57
3rd year 0.17 Nil
4th year Nil Nil
5th year Nil Nil
Beyond 5 years Nil Nil

(xii)(a) Information in respect of Options granted under the Company’s Employee Stock Option Schemes (‘Schemes’):

1. Date of Shareholders’ approval : 22-01-2007 23-07-2010
2. Total number of Options : Options equivalent to Options equivalent to
approved under the Schemes 37,89,18,503 Ordinary 55,60,44,823 Ordinary
(Adjusted for Bonus Shares of ` 1.00 each Shares of ` 1.00 each
Shares issued in terms of
Shareholders’ approval)
3. Vesting Schedule : The vesting period for conversion of Options is as follows:
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 the 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 : Five years - the exercise period commences from the date of vesting of the Options
granted 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
8. Method used for accounting : The employee compensation cost has been calculated using the fair value method
of share-based payment plans 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 2022-23 is ` 61.11 Crores (2022 - ` 33.51 Crores), out of which ` 60.41
Crores (2022 - ` 33.17 Crores) relate to employee benefits expense, ` 0.28 Crore
(2022 - ` 0.23 Crore) to property, plant and equipment and ` 0.42 Crore (2022 - ` 0.11
Crore) for group entities.
9. Nature and extent of : In addition to the terms and conditions provided in the table under Serial Nos. (3) to (5)
employee share based hereinbefore, each Option entitles the holder thereof to apply for and be allotted
payment plans that existed ten Ordinary Shares of the Company of ` 1.00 each upon payment of the exercise
during the period including the price during the exercise period.
general terms and conditions
of each plan
10. Weighted average exercise : Weighted average exercise price per Option : ` 3,460.70
prices and weighted average
Weighted average fair value per Option : ` 853.67
fair values of Options whose
exercise price either equals
or exceeds or is less than the
market price of the stock


11. Option movements during the year :
a) Options outstanding at the : 3,79,976 2,23,88,755
beginning of the year
b) Options granted during the year : 9,800 13,66,500
c) Options cancelled and lapsed : 3,800 4,55,571
during the year
d) Options vested and exercisable : 33,990 6,65,415
during the year (net of Options
lapsed and exercised)
e) Options exercised during : 1,00,168 1,03,76,013
the year
f) Number of Ordinary Shares of : 10,01,680 10,37,60,130
` 1.00 each arising as a result
of exercise of Options during
the year
g) Options outstanding at the end : 2,85,808 1,29,23,671
of the year (a+b-c-e)
h) Options exercisable at the end : 1,95,798 1,05,09,326
of the year
i) Money realised by exercise of : 23.22 2,454.18
the Options during the year
(` in Crores)
12. Summary of the status of Options:
No. of Options Weighted Average No. of Options Weighted Average
Exercise Prices (`) Exercise Prices (`)
Outstanding at the beginning of : 2,27,68,731 2469.30 2,91,81,292 2402.40
the year
Add: Granted during the year : 13,76,300 3460.70 12,21,600 2333.96
Less: Lapsed during the year : 4,59,371 2477.37 61,92,991 2230.80
Less: Exercised during the year : 1,04,76,181 2364.79 14,41,170 2024.88
Outstanding at the end of the year : 1,32,09,479 2655.20 2,27,68,731 2469.30
Options exercisable at the end : 1,07,05,124 2603.17 2,08,53,766 2495.72
of the year
13. Weighted average share price of : The weighted average share price of Shares, arising upon exercise of Options during the
Shares arising upon exercise of year ended 31st March, 2023 was ` 315.92 (2022 - ` 212.94). This was based on the
Options 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).
14. Summary of Options outstanding, scheme-wise:
No. of Options Range of Weighted No. of Options Range of Weighted
Outstanding Exercise Prices (`) average Outstanding Exercise Prices (`) average
remaining remaining
contractual life contractual life
ITC Employee Stock Option : 2,85,808 1698.00 – 3463.50 3.44 3,79,976 1698.00 – 2885.50 3.61
Scheme - 2006
ITC Employee Stock Option : 1,29,23,671 1698.00 – 3463.50 2.50 2,23,88,755 1698.00 – 2885.50 1.93
Scheme - 2010


15. A description of the method used : The fair value of each Option is estimated using the Black Scholes Option Pricing model.
during the year to estimate the fair
values of Options, the weighted Weighted average exercise price per Option : ` 3460.70
average exercise prices and Weighted average fair value per Option : ` 853.67
weighted average fair values of
Options granted
The significant assumptions used : The fair value of each Option is estimated using the Black Scholes Option Pricing model
to ascertain the above after applying the following key assumptions on a weighted average basis:
(i) Risk-free interest rate 7.31%
(ii) Expected life 4.61 years
(iii) Expected volatility 25.08%
(iv) Expected dividends 3.32%
(v) The price of the underlying shares in market at the time of Option grant ` 3460.70
(One Option = 10 Ordinary Shares)
16. Methodology for determination of : The volatility used in the Black Scholes Option Pricing model is the annualised standard
expected volatility 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.
(xii)(b) Information in respect of Stock Appreciation Linked Reward Plan:
Sl. Particulars Details

No.
1 Nature and extent of Stock : ITC Employee Cash Settled Stock Appreciation Linked Reward Plan (ITC ESAR Plan).
Appreciation Linked Reward Plan Under the ITC ESAR Plan, the eligible employees receive cash on vesting of SAR units,
that existed during the year along equivalent to the difference between the grant price and the market price of the share on
with general terms and conditions vesting of SAR units subject to the terms and conditions specified in the Plan.
2 Settlement Method : Cash – Settled
3 Vesting period and maximum : Over a period of five years from the date of grant in accordance with the Plan.
term of SAR granted
4 Method used to estimate the fair : Black Scholes Option Pricing model. The said model considers inputs such as Risk-free
value of SAR granted interest rate, Expected life, Expected volatility, Expected dividend, Market price etc. The
number of SAR units outstanding as at 31st March, 2023 is 25,00,251 (2022 - 39,46,719)
and the weighted average fair value at measurement date is ` 712.18 (2022 - ` 217.98)
per SAR unit.
5 Total cost recognised in the profit : The cost has been calculated using the fair value method of accounting for SAR units
or loss issued under the ITC ESAR Plan. The employee compensation cost / (reversal) as per fair
value method for the financial year 2022-23 is ` 216.12 Crores (2022 - ` 30.01 Crores);
out of which, ` 214.31 Crores (2022 - ` 29.46 Crores) relate to employee benefits expense
(Refer Note 24), ` 0.04 Crore (2022 - ` 0.17 Crore) to property, plant and equipment and
` 1.77 Crores (2022 - ` 0.38 Crore) for group entities. The amount carried in the Balance
Sheet as a non - current financial liability is ` 71.35 Crores (2022 - ` 48.99 Crores) and
as a current financial liability is ` 122.30 Crores (2022 - ` 19.10 Crores) (Refer Note 17B).
(xiii) Amount required to be spent by the Group during the year as per Section 135 read with Section 198 of the Companies Act,
2013 - ` 377.32 Crores (2022 - ` 362.56 Crores) being 2% of the average Net Profit of the Company.
Expenditure incurred during the year is ` 377.93 Crores (2022 - ` 363.37 Crores) comprising employee benefits expense of
` 14.33 Crores (2022 - ` 15.92 Crores) and other expenses of ` 363.60 Crores (2022 - ` 347.45 Crores), of which ` 62.71 Crores
(2022 - ` 26.01 Crores) is accrued for payment as on 31st March, 2023. The above includes an amount of ` 23.10 Crores
(2022 - ` 3.90 Crores) with regard to ongoing project, which has been deposited in the Unspent CSR Account within 30 days from the
end of the financial year. Amount available for set off in succeeding financial years is ` 1.35 Crores (2022 - ` 0.76 Crore).

Such CSR expenditure of ` 377.93 Crores (2022 - ` 363.37 Crores) excludes ` 9.43 Crores (2022 - ` 5.85 Crores) being the

excess of expenditure of salaries of CSR personnel and administrative expenses over the limit of 5% of total CSR expenditure
laid down under Rule 7(1) of the Companies (Corporate Social Responsibility Policy) Rules, 2014 as applicable to individual
entities.
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; and providing relief and
(xiv) Trade Payables ageing schedule: (` in Crores)
Not Due Less than 1 - 2 years 2 - 3 years More than Total
1 year 3 years
MSME 44.39 – – – – 44.39

Others 632.94 49.68 0.01 – – 682.63
Disputed Dues - MSME – – – – – –
Disputed Dues - Others – – – – 0.28 0.28
SUB-TOTAL 677.33 49.68 0.01 – 0.28 727.30

– MSME 93.49
– Others 3838.20
TOTAL 4658.99
(` in Crores)
Not Due Less than 1 - 2 years 2 - 3 years More than Total
1 year 3 years
MSME 33.26 – – – – 33.26

Others 867.10 101.18 0.57 0.52 0.31 969.68
Disputed Dues - MSME – – – – – –
Disputed Dues - Others – – – – 0.50 0.50
SUB-TOTAL 900.36 101.18 0.57 0.52 0.81 1003.44

– MSME 68.16
– Others 3345.66
TOTAL 4417.26
(xv) On 20th April 2022, 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 Product Lifecycle Management (PLM) software 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). As part of this agreement, I3L acquired Business and Commercial Rights resulting in it becoming

a preferred partner for consulting and implementation services relating to the Windchill PLM and associated Application Lifecycle
Management (ALM) and Service Lifecycle Management service (SLM) software business. The transaction was consummated
on 1st June 2022, and I3L capitalized the fair value of the consideration payable to PTC amounting to ` 745.38 Crores as
‘Business and Commercial Rights’. The consideration is payable in cash and through assumption of certain employee liabilities.
A part of the said consideration is contingent in nature – payable subject to achievement of revenue and business targets.
The details relating to the transaction are as follows:
Particulars ` in Crores
Business and Commercial Rights acquired and capitalized on 1st June, 2022 as an intangible asset
(Refer Note 3E) 745.38
Less: Employee Liabilities assumed on date of acquisition (24.40)
Consideration payable to PTC Inc. 720.98
Settled
Initial consideration paid on 1st June, 2022 (252.19)
Settlement of consideration by offset of trade receivables (1.64)
Changes in fair value recognised in Other Income (Refer Note 23) 50.63
Changes in fair value transferred to Hedge Reserve (Refer Note 31) 4.96
Closing Balance as at 31st March, 2023* 522.74
*The amount carried in the Balance Sheet as a non – current financial liability is ` 213.27 Crores and as current financial liability
is ` 309.47 Crores (Refer Note 17B).
(xvi) The Ministry of Corporate Affairs (MCA) has issued the Companies (Indian Accounting Standards) (Amendment) Rules, 2023
on 31st March, 2023 amending:
Ind AS 1, ‘Presentation of Financial Statements’ - This amendment requires companies to disclose their material accounting
policies rather than their significant accounting policies.
Ind AS 8 ‘Accounting Policies, Changes in Accounting Estimates and Errors’ - This amendment has introduced a definition of
‘accounting estimates’ and includes guidance to help distinguish changes in accounting policies from changes in accounting
estimates.
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 same are applicable for financial statements pertaining to annual periods beginning on or after 1st April, 2023. Based
on a preliminary evaluation, the Company does not expect any material impact on the financial statements resulting from the
implementation of these amendments.
(xvii) Figures presented as “…” are below the rounding off norm adopted by the Group.
(xviii) Figures for the previous year have been re-arranged, wherever necessary, to conform to the figures of the current year.
(xix) The financial statements were approved for issue by the Board of Directors on 18th May, 2023.

29. Segment reporting
(` in Crores)
2023 2022
External Inter Segment Total External Inter Segment Total
1. Segment Revenue - Gross
FMCG - Cigarettes 31267.46 – 31267.46 26158.31 – 26158.31
FMCG - Others 19109.33 43.76 19153.09 15993.12 30.20 16023.32
FMCG - Total 50376.79 43.76 50420.55 42151.43 30.20 42181.63
Hotels 2672.79 16.33 2689.12 1341.02 6.64 1347.66
Agri Business 12361.62 6081.77 18443.39 12192.01 4273.66 16465.67
Paperboards, Paper and Packaging 7233.69 1847.66 9081.35 6203.79 1437.83 7641.62
Others 3181.69 81.04 3262.73 2729.98 69.23 2799.21
Segment Total 75826.58 8070.56 83897.14 64618.23 5817.56 70435.79
Eliminations (8070.56) (5817.56)
Gross Revenue from sale of products and services 75826.58 64618.23
2. Segment Results
FMCG - Others 1386.49 934.93
FMCG - Total 20269.08 16703.38
Hotels 557.31 (185.23)
Others 534.62 723.73
Segment Total 25035.17 20028.10
Eliminations 22.19 14.01
Total 25057.36 20042.11
Unallocated corporate expenses net of unallocated income 1247.27 906.84
Profit before interest etc. and taxation 23810.09 19135.27
Finance Costs 43.20 39.36
Interest earned on loans and deposits, income from current and non current
investments, profit and loss on sale of investments etc. - Net 2026.32 1627.08
Share of net profit of associates & joint ventures 49.04 17.48
Exceptional items [Refer Note 28(i)] 72.87 –
Tax expense 6438.40 5237.34
Profit for the year 19476.72 15503.13
3. Other Information 2023 2022

Segment Assets Segment Liabilities Segment Assets Segment Liabilities
FMCG - Cigarettes 7913.36 5239.34 7193.11 4855.07
FMCG - Others 12059.55 2338.08 11546.19 2258.59
FMCG - Total 19972.91 7577.42 18739.30 7113.66
Hotels 7896.45 920.30 7470.93 807.44
Agri Business 4836.69 1750.62 5202.93 1724.46
Others 3090.47 1210.08 1713.01 463.17
Segment Total 44991.76 12773.60 41608.54 11434.78
Unallocated Corporate Assets / Liabilities 40891.22 3570.59 35651.01 3002.90
Total 85882.98 16344.19 77259.55 14437.68
002
2021
29. Segment reporting (Contd.)
(` in Crores)
2023 2022
Capital Depreciation and Capital Depreciation and
expenditure amortization expenditure amortization
FMCG - Cigarettes 185.07 303.74 151.46 297.05
FMCG - Others 418.77 588.03 339.00 534.01
FMCG - Total 603.84 891.77 490.46 831.06
Hotels 588.70 294.67 499.56 265.77
Agri Business 258.41 69.60 215.26 82.92
Others 809.52 91.69 25.45 28.45
Segment Total 3005.03 1695.72 2127.45 1619.17
Unallocated 191.04 113.29 130.83 113.24
Total 3196.07 1809.01 2258.28 1732.41
Non Cash expenditure Non Cash expenditure

other than depreciation other than depreciation
FMCG - Others 5.42 6.56
FMCG - Total 5.85 13.04
Hotels 7.75 1.42
Others 7.56 7.35
Segment Total 29.45 52.78
GEOGRAPHICAL INFORMATION
2023 2022
1. Revenue from external customers

– Within India 59900.75 50533.64
– Outside India 15925.83 14084.59
Total 75826.58 64618.23
2. Non current assets

– Within India 28661.84 27624.06
– Outside India 1570.84 1166.59
Total 30232.68 28790.65
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.
: 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.
: Others – Surya Nepal Private Limited and North East Nutrients Private Limited.
Hotels – Srinivasa Resorts Limited, Fortune Park Hotels Limited, Bay Islands Hotels Limited, WelcomHotels Lanka (Private) Limited and Landbase India
Limited.
Agri Business – Technico Agri Sciences Limited, Technico Pty Limited and its subsidiaries Technico Technologies Inc., Technico Asia Holdings Pty Limited, Technico
Horticultural (Kunming) Co. Limited and ITC IndiVision 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. 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 (erstwhile ITC Investments & Holdings 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 do 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.
ITC Limited REPORT AND ACCOUNTS 2023

2021 003
301
30. Related Party Disclosures
1. OTHER RELATED PARTIES WITH WHOM THE COMPANY Company Secretary

AND ITS SUBSIDIARIES HAD TRANSACTIONS: R. K. Singhi
i) Associates & Joint Ventures:
Members - Corporate Management Committee
Associates
S. Puri
a) Gujarat Hotels Limited
N. Anand
b) International Travel House Limited
S. Dutta
c) ATC Limited
B. Sumant
d) Delectable Technologies Private Limited S. Kaul (w.e.f. 01.05.2022)
– being associates of the Group, and H. Malik
e) Tobacco Manufacturers (India) Limited (of which A. Rajput
the Company is an associate) S. Sivakumar
and the subsidiaries of its ultimate parent R. Tandon (upto 21.07.2022)
company (British American Tobacco p.l.c.) S. Rangrass (upto 03.06.2022)
Joint Ventures S. K. Singh (upto 26.05.2022)
a) Maharaja Heritage Resorts Limited
b) Relatives of KMP:
b)
T. Anand (wife of N. Anand)
ii) a) Key Management Personnel (KMP):
N. Singhi (wife of R. K. Singhi)
Chairman & Managing Director
S. Puri
Y. Singhi (son of R. K. Singhi)
N. Anand Executive Director
R. Tandon (wife of R. Tandon) (upto 21.07.2022)
S. Dutta
Executive Director
(w.e.f. 22.07.2022) and c) Entities in which relative of KMP is interested:
Chief Financial Officer Décor & Design
B. Sumant Executive Director
iii) Employee Trusts:
S. Banerjee# Non-Executive Director
a) IATC Provident Fund
H. Bhargava# Non-Executive Director
b) ITC Defined Contribution Pension Fund
P. R. Chittaranjan Non-Executive Director
c) ITC Management Staff Gratuity Fund
(w.e.f. 03.02.2023)
d) ITC Employees Gratuity Fund
A. Duggal# Non-Executive Director
e) ITC Gratuity Fund ‘C’
M. Gupta Non-Executive Director f) ITC Pension Fund
S. Mukherjee# Non-Executive Director g) ILTD Seasonal Employees Pension Fund
A. Nayak# Non-Executive Director h) ITC Platinum Jubilee Pension Fund
S. Panray Non-Executive Director i) ITC Bhadrachalam Paperboards Limited Management
N. Rao# Non-Executive Director Staff Pension Fund
A. K. Seth# Non-Executive Director j) ITC Bhadrachalam Paperboards Limited Gratuity

Fund ‘A’
M. Shankar# Non-Executive Director
k) ITC Bhadrachalam Paperboards Limited Gratuity
D. R. Simpson Non-Executive Director Fund ‘C’
N. Doda
Non-Executive Director l) ITC Hotels Limited Employees Superannuation
(up to 19.01.2023) Scheme
R. Tandon Executive Director (up to m) Sunrise Spices Limited Employees Gratuity Fund
21.07.2022) n) Greenacre Holdings Limited Provident Fund
# Independent Directors o) Greenacre Holdings Limited Gratuity Fund
002
2021
2. DISCLOSURE OF TRANSACTIONS BETWEEN THE GROUP AND RELATED PARTIES AND THE STATUS OF OUTSTANDING BALANCES AS AT 31.03.2023 (` in Crores)
Key Management Relatives of

Associates Joint Ventures Employee Trusts Total
RELATED PARTY TRANSACTIONS SUMMARY Personnel (KMP) KMP^
2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022
1. Sale of Goods / Services 2070.86 1316.61 93.84 54.19 2164.70 1370.80
2. Purchase of Goods / Services 136.63 73.37 438.31 280.54 0.05 – 574.99 353.91
3. Sale of Property, Plant and Equipment 0.44 – 0.44 –
4. Investment in Associate 1.88 1.87 1.88 1.87
5. Reimbursement for Share Based Payments 1.83 0.41 0.37 0.08 2.20 0.49
6. Rent Received 0.88 0.88 0.88 0.88
7. Rent Paid* 4.32 2.51 1.02 1.05 0.32 0.32 5.66 3.88
8. Remuneration of Managers on Deputation reimbursed 7.06 5.36 7.06 5.36
9. Remuneration of Managers on Deputation recovered 7.95 6.83 1.76 1.43 9.71 8.26
10. Contribution to Employees’ Benefit Plans 1 118.04 178.55 118.04 178.55
11. Dividend Income 0.56 0.31 18.00 15.75 18.56 16.06
12. Dividend Payments 4447.03 3993.34 6.25 5.70 4453.28 3999.04
13. Expenses Recovered 29.10 21.59 0.30 0.11 29.40 21.70
14. Expenses Reimbursed 0.25 0.26 0.02 0.05 0.27 0.31
15. Adjustment / Receipt towards Refund of Advances – … – …
16. Advances Received during the year 1813.30 1496.60 1813.30 1496.60
17. Adjustment / Payment towards Refund of Advances 1786.29 972.02 1786.29 972.02
18. Deposits Given during the year – … – …
19. Adjustment / Receipt towards Refund of Deposit 0.02 – 0.02 –
20. Remuneration to KMP 1
20A. – Short term benefits 46.76 46.85 46.76 46.85
20B. – Other long-term incentives 28.95 22.48 28.95 22.48
20C. – Other remuneration 13.06 10.51 13.06 10.51
20D. – Share Based Payments 2
ITC Limited
21. Outstanding Balances#
i) Receivables 105.86 127.10 16.04 14.66 121.90 141.76
ii) Advances Given 5.76 4.50 5.76 4.50
iii) Deposits Given 0.06 0.08 0.07 0.07 0.13 0.15
iv) Advances Taken 719.42 692.41 719.42 692.41
v) Deposits Taken 0.61 0.61 0.61 0.61
vi) Payables 6.35 6.00 20.60 13.83 49.15 32.05 76.10 51.88
^ Includes transactions with entity in which relative of KMP is interested.
* Includes rent pertaining to leases classified as Right of Use Assets.
# The amounts outstanding are unsecured and will be settled in cash.
1 Post employment benefits are actuarially determined on overall basis and hence not separately provided. Payments made on settlement of leave liability upon retirement - ` 2.69 Crores (2022 - ` Nil) 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

2021
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 ` 274.72 Crores
303
003
for the year ended 31st March, 2023 (2022 - ` 62.63 Crores), of which ` 35.43 Crores (2022 - ` 23.14 Crores) is attributable to Executive Directors and KMPs.
304
002
3. INFORMATION REGARDING SIGNIFICANT TRANSACTIONS / BALANCES

(Generally in excess of 10% of the total transaction value of the same type)
RELATED PARTY TRANSACTIONS SUMMARY 2023 2022 RELATED PARTY TRANSACTIONS SUMMARY 2023 2022 RELATED PARTY TRANSACTIONS SUMMARY 2023 2022
ITC Limited
1. Sale of Goods / Services 11. Dividend Income 20B. Other long-term incentives
British American Tobacco (GLP) Limited 1352.17 985.49 ITC Essentra Limited 18.00 15.75 S. Puri 10.08 6.52
JSC ‘British American Tobacco-SPb’ 446.96 – N. Anand 4.47 3.26
12. Dividend Payments
British American Shared Services (GSD) Limited 218.55 100.44 R. Tandon (related party up to 21.07.2022) 0.82 3.26
Tobacco Manufacturers (India) Limited 3648.48 3276.18
2. Purchase of Goods / Services B. Sumant 5.04 3.26
Myddleton Investment Company Limited 595.73 534.94 20C. Other remuneration
ITC Essentra Limited 438.15 280.43
13. Expenses Recovered S. Banerjee 1.13 1.04
International Travel House Limited 87.05 32.92
British American Tobacco (GLP) Limited 21.97 14.26 A. Duggal 1.12 1.03
3. Sale of Property, Plant and Equipment
British American Tobacco Exports Limited 5.76 – A. Nayak 1.11 1.01
S. K. Singh 0.20 –
M. Shankar 1.09 1.01
R. K. Singhi 0.12 – British American Tobacco Kenya plc 1.24 2.22

2021
H. Bhargava 1.10 0.70
S. Sivakumar 0.12 – BAT (U.K. & Export) Limited – 4.95
21. Outstanding Balances
4. Investment in Associate 14. Expenses Reimbursed i) Receivables
Delectable Technologies Private Limited 1.88 1.87 Gujarat Hotels Limited 0.25 0.23 British American Tobacco (GLP) Limited 36.35 59.75
5. Reimbursement for Share Based Payments British American Shared Services (GSD) Limited 56.44 35.75
15. Adjustment / Receipt towards Refund of
Maharaja Heritage Resorts Limited 0.23 0.03
Advances ITC Essentra Limited 14.78 12.50
International Travel House Limited 1.46 0.32 International Travel House Limited – … ii) Advances Given
ATC Limited 0.35 0.09 16. Advances Received during the year Employee Trust - Pension Funds 5.76 4.50

ITC Essentra Limited 0.14 0.05 iii) Deposits Given
British American Tobacco (GLP) Limited 1152.95 1494.26
6. Rent Received N. Anand 0.05 0.05
JSC ‘British American Tobacco–SPb’ 650.55 –
International Travel House Limited 0.87 0.87 S. Dutta 0.01 0.01
7. 17. Adjustment / Payment towards Refund of R. Tandon (related party up to 21.07.2022) – 0.03
Rent Paid
Advances
Gujarat Hotels Limited 4.32 2.51 N. Singhi 0.03 0.03
British American Tobacco (GLP) Limited 1324.76 967.97 iv) Advances Taken
A. Rajput 0.43 0.43
JSC ‘British American Tobacco–SPb’ 451.75 – British American Tobacco (GLP) Limited 520.52 692.33
8. Remuneration of Managers on Deputation

reimbursed 18. Deposits Given during the year JSC ‘British American Tobacco-SPb’ 198.80 –
Gujarat Hotels Limited 7.06 5.36 R. Tandon (related party up to 21.07.2022) – … v) Deposits Taken
9. Remuneration of Managers on Deputation International Travel House Limited 0.60 0.60
19. Adjustment / Receipt towards Refund of
recovered vi) Payables
Deposit
International Travel House Limited 4.06 3.27 R. Tandon (related party up to 21.07.2022) 0.02 – Employee Trust - Gratuity Funds 24.77 16.98
ATC Limited 3.11 2.86 Employee Trust - Pension Funds 24.38 15.07
20. Remuneration to KMP#
ITC Essentra Limited 1.14 0.89 ITC Essentra Limited 20.60 13.83
20A. Short term benefits # In accordance with Ind AS - 102, the Company has recognised employee benefits
10. Contribution to Employees’ Benefit Plans
S. Puri 12.09 10.66 expense by way of share based payments [refer Note 30.2], of which ` 35.43 Crores
ITC Pension Fund 21.02 96.02 (2022 - ` 23.14 Crores) is attributable to Executive Directors & KMPs:
IATC Provident Fund 39.47 37.07 N. Anand 5.96 5.37 S. Puri ` 9.96 Crores (2022 - ` 6.41 Crores), N. Anand ` 5.07 Crores (2022 - ` 4.15 Crores),
R. Tandon (related party upto 21.07.2022) ` 2.26 Crores (2022 - ` 5.04 Crores),
ITC Management Staff Gratuity Fund 23.89 20.19 R. Tandon (related party up to 21.07.2022) 1.62 4.84 B. Sumant ` 4.58 Crores (2022 - ` 2.15 Crores), S. Dutta ` 2.51 Crores (2022 - ` 0.53 Crore)
ITC Employees Gratuity Fund 11.70 10.90 B. Sumant 5.35 4.84 and R. K. Singhi ` 0.72 Crore (2022 - ` 0.57 Crore).
31. Financial Instruments and Related Disclosures
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 accrual and aims at maintaining a
strong capital base to support the future growth of its businesses.
During the year, the Group issued 10,47,61,810 Ordinary Shares (2022 - 1,44,11,700 Ordinary Shares) of ` 1.00 each amounting
to ` 10.48 Crores (2022 - ` 1.44 Crores) towards its employee stock options. The securities premium stood at ` 13036.79 Crores
as at 31st March, 2023 (2022 - ` 9959.31 Crores).
B. Categories of Financial Instruments (` in Crores)
As at As at
Particulars Note
Carrying Fair Carrying Fair
A. Financial assets
i) Cash and cash equivalents 13 463.35 463.35 271.37 271.37
ii) Other Bank Balances 14 4416.84 4416.84 4383.05 4383.05
iii) Investment in Bonds / Debentures
& Government or Trust Securities 4, 11 8234.83 8225.70 11147.17 11392.85
iv) Investment in Mutual Funds 4 346.05 337.99 278.36 277.12
v) Loans 5 12.60 11.31 13.38 11.64
vi) Trade receivables 12 2956.17 2956.17 2461.90 2461.90
vii) Other financial assets 6 4824.27 4776.27 4122.27 4077.03
Sub-total 21254.11 21187.63 22677.50 22874.96
i) Investment in Equity shares 4 1723.70 1723.70 1615.07 1615.07
ii) Investment in Mutual Funds 4 3776.62 3776.62 1238.69 1238.69
Sub-total 5500.32 5500.32 2853.76 2853.76
Profit or Loss
i) Investment in Mutual Funds 11 9425.09 9425.09 8965.63 8965.63
Certificate of Deposits 11 5412.55 5412.55 1219.52 1219.52
iii) Investment in Venture Capital
Funds 4 119.25 119.25 87.33 87.33
Preference Shares 4 39.34 39.34 20.00 20.00
Sub-total 14996.23 14996.23 10292.48 10292.48
designated as hedging
instruments 6 4.77 4.77 5.45 5.45
as hedging instruments 6 29.38 29.38 27.27 27.27
Sub-total 34.15 34.15 32.72 32.72
Total financial assets 41784.81 41718.33 35856.46 36053.92

2021 003
305
31. Financial Instruments and Related Disclosures (Contd.) (` in Crores)
As at As at
Particulars Note
Carrying Fair Carrying Fair
i) Cash credit facilities & loans 16, 20 34.27 34.27 0.31 0.26
ii) Sales tax deferment loans 16, 20 4.54 3.66 5.28 3.86
iii) Trade payables 4658.99 4658.99 4417.26 4417.26
iv) Lease liabilities 17A 267.23 267.23 243.85 243.85
v) Other financial liabilities 17B 2280.58 2249.76 1870.01 1855.46
Sub-total 7245.61 7213.91 6536.71 6520.69
designated as hedging instruments 17B 4.27 4.27 1.38 1.38
as hedging instruments 17B 4.34 4.34 9.56 9.56
iii) Contingent Consideration 17B 535.39 535.39 76.40 76.40
Sub-total 544.00 544.00 87.34 87.34
Total financial liabilities 7789.61 7757.91 6624.05 6608.03
C. Financial risk management objectives

Entities comprising the Group have put in place risk management systems as applicable to the respective operations. The
following explains the objectives and processes of the Company, being the largest component of the Group: 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 applicable regulation. It also seeks to
drive accountability in this regard.
Liquidity Risk
The Group’s Current assets aggregate ` 39670.89 Crores (2022 - ` 34232.45 Crores) including Current Investments,
Cash and cash equivalents and Other Bank Balances of ` 22113.05 Crores (2022 - ` 16918.70 Crores) against an aggregate
Current liabilities of ` 13739.41 Crores (2022 - ` 12163.71 Crores). As part of its surplus liquidity management operations, the
Group 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
` 49.13 Crores (2022 - Nil) (Refer Note 23).
Other Non-current liabilities other than lease liabilities due between one year to three years amounted to ` 304.94 Crores
(2022 - ` 112.94 Crores) and Other Non-current liabilities due after three years amounted to ` 115.42 Crores (2022 - ` 36.41
Crores) on the reporting date. The maturity analysis of undiscounted lease liabilities are disclosed under Note 28 (xi).
Further, while the Group’s total equity stands at ` 69538.79 Crores (2022 - ` 62821.87 Crores), it has non-current borrowings of
` 3.49 Crores (2022 - ` 4.85 Crores). In such circumstances, liquidity risk or the risk that the Group may not be able to settle or
meet its obligations as they become due does not exist.
Market Risk
The Group 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, 2023 is ` 1723.70 Crores (2022 - ` 1615.07 Crores). Accordingly, fair value fluctuations arising from market
volatility is recognised in Other Comprehensive Income.
002
2021
As the Group 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.
The Group’s investments are predominantly held in bonds / debentures, fixed deposits, certificate of deposits and debt mutual
funds. Mark to market movements in respect of the Group’s investments in bonds / debentures that are held at amortised cost
are temporary and get recouped through coupon accruals. Other investments in bonds / debentures, certificate of deposits 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 Group also invests in mutual fund schemes of leading fund houses. Such investments are susceptible to market price risk
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 underlying portfolio of the mutual fund schemes in which the Group has invested, such price risk is not
significant.
For select agricultural commodities primarily held for trading, futures contracts are used to hedge price risks till positions in
the physical market are matched. 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 and are
managed by the business within the approved policy framework. Accordingly, the Group’s net exposure to commodity price risk is
considered to be insignificant.
Foreign currency risk
The Group 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 Group’s net investments in foreign operations (with a functional currency other than Indian Rupee), are also subject
to reinstatement risks.
The carrying amounts of foreign currency denominated financial assets and liabilities including derivative contracts (other than in
functional currency), are as follows:
(` in Crores)

The Group uses foreign exchange forward, futures and options contracts to hedge its exposures in foreign currency arising
from firm commitments and highly probable forecast transactions.
a. Forward exchange contracts that were outstanding on respective reporting dates:
(In Million)
Designated under Hedge Accounting As at 31st March, 2023 As at 31st March, 2022

Euro US Dollar 41.94 – 14.09 –
CHF US Dollar – – 1.16 –
GBP US Dollar – – 0.01 –
SEK US Dollar – – 1.36 –
SGD US Dollar – – 0.04 –
JPY US Dollar 123.81 – 324.36 –
The aforesaid hedges have a maturity of less than 1 year from the year end.

2021 003
307
(In Million)
Not designated under Hedge Accounting As at 31st March, 2023 As at 31st March, 2022
Euro US Dollar 2.90 7.25 – 13.55
AUD US Dollar – – 0.04 –
CAD US Dollar – 2.49 – –
CHF US Dollar 0.66 0.20 0.34 –
GBP US Dollar 0.08 3.74 – 12.99
SEK US Dollar 4.10 – – –
KWD US Dollar – – 0.19 –
PLN US Dollar 1.00 – – –
JPY US Dollar 232.72 – 53.90 –
ZAR US Dollar – 11.20 – 3.50
US Dollar Nepalese Rupee 4.75 – 3.83 –
Euro Nepalese Rupee 0.31 – 0.39 –
GBP Nepalese Rupee 0.07 – … –
b. Currency options that were outstanding on respective reporting dates (Designated under Hedge Accounting):
(In Million)
US Dollar Indian Rupee – 8.00 – 17.00
Hedges of foreign currency risk and derivative financial instruments
Each entity comprising the Group manages its own currency risk. Within the Group, derivative instruments are largely entered
into by the Company and a subsidiary. The Company and the aforesaid subsidiary 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, options contracts and certain non-derivative financial liabilities.
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 primarily highly rated banks or recognised exchange(s), the risk of their
non-performance is considered to be insignificant. Where derivatives are not designated under hedge accounting, changes in the
fair value of such hedges are recognised in the Statement of Profit and Loss.
The Company and one of its subsidiary has designated certain hedges which are entered to manage the volatility in cashflows
as a cash flow hedge under hedge accounting. 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.
002
2021
The movement in the cash flow hedging reserve in respect of designated cash flow hedges is summarised below:
(` in Crores)
Particulars 2023 2022
At the beginning of the year 14.33 4.93
Add: Changes in the fair value of effective portion of matured
cash flow hedges during the year (154.16) 16.71
Add: Changes in fair value of effective portion of
outstanding cash flow hedges 12.15 19.27
on occurrence of forecast hedge transactions during the year (82.63) 30.07
due to cash flows no longer expected to occur (28.19) 3.03
Less: Amounts transferred to initial cost of non-financial assets (10.40) (9.68)
Less: Net gain / (loss) transferred to the Statement of Profit and
Loss on ineffectiveness – –
(Less) / Add: Deferred tax 5.23 (3.16)
At the end of the year (1.23) 14.33
Of the above, balances remaining in cash flow hedge reserve
for matured hedging relationships (11.20) 2.46
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, in the anticipated
timeframes given below:
(` in Crores)
Outstanding balance in Cash Flow Hedge Reserve to be As at As at
subsequently recycled from OCI 31st March, 2023 31st March, 2022
Within one year 0.98 10.80
Between one and three years (1.51) 3.53
Beyond three years (0.70) –
Total (1.23) 14.33
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, 2023 would decrease / increase by ` 2.72 Crores (2022 - ` (2.53) Crores) and other equity as at 31st March, 2023
would decrease / increase by ` 2.89 Crores (2022 - ` 38.12 Crores) on a pre-tax basis.
Credit Risk
Each entity comprising the Group manages its own credit risk. The following explains the processes followed by the Company,
being the largest component of the Group, to manage its credit risk: Company’s deployment in debt instruments are 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 certificate of deposits issued by highly rated banks and
financial institutions. As these counter parties 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 counter
party risk attached to such assets is considered to be insignificant.
The Group’s investments that are held at amortised cost stood at ` 16422.36 Crores (2022 - ` 18598.99 Crores).
The Company’s customer base is large and diverse limiting the risk arising out of credit concentration. Further, 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. 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 is recognized, where considered appropriate by responsible management.

2021 003
309
The Group’s exposure to trade receivables on the reporting date, net of expected loss provisions, stood at ` 2956.17 Crores
(2022 - ` 2461.90 Crores).
The movement of the expected loss provision (allowance for bad and doubtful loans, advances and receivables etc.) made by the
Group are as under:
(` in Crores)
Expected Loss Provision
Opening Balance 240.91 239.05
Add: Provisions made (net) 6.19 16.89
Less: Utilisation for impairment / de-recognition 5.76 14.82
Effects of foreign exchange fluctuation (0.48) (0.21)
Closing Balance 240.86 240.91
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:
(` in Crores)
Fair Value
Particulars Hierarchy (Level)
A. Financial assets
i) Investment in Bonds / Debentures
& Government or Trust Securities 2 8225.70 11392.85
ii) Investment in Mutual Funds 1 337.99 277.12
iii) Loans* 3 4.19 4.87
iv) Other Financial assets* 3 3691.75 1544.34
Sub-total 12259.63 13219.18
i) Investment in Equity shares –

Quoted 1 1721.28 1610.33
ii) Investment in Equity shares –
Unquoted 3 2.42 4.74
iii) Investment in Mutual Funds 1 3776.62 1238.69
Sub-total 5500.32 2853.76
Profit or Loss
i) Investment in Mutual Funds 1 9425.09 8965.63

Certificate of Deposits 2 5412.55 1219.52
iii) Investment in Venture
Capital Funds 2 119.25 87.33
Preference Shares 3 39.34 20.00
Sub-total 14996.23 10292.48
designated as hedging instruments 2 4.77 5.45
Sub-total 34.15 32.72
Total financial assets 32790.33 26398.14
002
2021
Fair Value
Particulars Hierarchy (Level)
i) Sales tax deferment loans* 3 2.40 3.12
ii) Other Financial liabilities* 3 172.78 129.95
iii) Lease Liabilities* 3 213.37 193.67
iv) Loans* 3 0.21 0.26
Sub-total 388.76 327.00
designated as hedging instruments 2 4.27 1.38
iii) Contingent Consideration 3 535.39 76.40
Sub-total 544.00 87.34
Total financial liabilities 932.76 414.34
*Represents Fair value of Non-current Financial Instruments
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 is as under:
(` in Crores)
Financial Financial Financial Financial Financial Financial

Assets Assets Liabilities Assets Assets Liabilities
at FVTPL at FVTOCI at FVTPL* at FVTPL at FVTOCI at FVTPL
Opening Balance 20.00 4.74 76.40 – 13.11 139.51

Additions during the year 39.34 – 720.98 20.00 – –
Sale / Transfer / Settlement during the year 20.00 – 317.58 – – 71.25
Other Income – – (50.63) – – (8.14)
Other Comprehensive Income – (2.32) (4.96) – (8.37) –
Closing Balance 39.34 2.42 535.39 20.00 4.74 76.40
*Also refer Note 28 (xv).
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).
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.

2021 003
311
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, Certificate of Deposits, 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.

Level 3: Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).
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 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 best estimate of fair value.
There has been no change in the valuation methodology for Level 3 inputs during the year. The Group 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.

R. K. SINGHI Company Secretary
002
2021
INDEPENDENT AUDITOR’S REPORT
To the Members of ITC Limited
Report on the Audit of the Consolidated Ind AS Financial described in the ‘Auditor’s Responsibilities for the Audit of
Statements the Consolidated Ind AS Financial Statements’ section of
our report. We are independent of the Group, associates,
Opinion joint ventures in accordance with the ‘Code of Ethics’
We have audited the accompanying consolidated Ind AS issued by the Institute of Chartered Accountants of India
financial statements of ITC Limited (hereinafter referred to together with the ethical requirements that are relevant to
as “the Holding Company”), its subsidiaries (the Holding our audit of the financial statements under the provisions
Company and its subsidiaries together referred to as of the Act and the Rules thereunder, and we have fulfilled
“the Group”) its associates and joint ventures comprising our other ethical responsibilities in accordance with these
of the consolidated Balance Sheet as at March 31, 2023, requirements and the Code of Ethics. We believe that
the consolidated Statement of Profit and Loss, including the audit evidence we have obtained is sufficient and
other comprehensive income, the consolidated appropriate to provide a basis for our audit opinion on the
Cash Flow Statement and the consolidated Statement of consolidated financial statements.
Changes in Equity for the year then ended, and notes to
Key Audit Matters
the consolidated Ind AS financial statements, including
a summary of significant accounting policies and other Key audit matters are those matters that, in our professional
explanatory information (hereinafter referred to as judgement, were of most significance in our audit of the
“the consolidated Ind AS financial statements”). consolidated Ind AS financial statements for the financial
year ended March 31, 2023. These matters were addressed
In our opinion and to the best of our information and
in the context of our audit of the consolidated financial
according to the explanations given to us and based on
statements as a whole, and in forming our opinion thereon,
the consideration of reports of other auditors on separate
and we do not provide a separate opinion on these
financial statements and on the other financial information
matters. For each matter below, our description of how our
of the subsidiaries, associates and joint ventures,
audit addressed the matter is provided in that context.
the aforesaid consolidated Ind AS financial statements
give the information required by the Companies Act, 2013, We have determined the matters described below to be the
as amended (“the Act”) in the manner so required and key audit matters to be communicated in our report. We
give a true and fair view in conformity with the accounting have fulfilled the responsibilities described in the Auditor’s
principles generally accepted in India, of the consolidated responsibilities for the audit of the consolidated Ind AS
state of affairs of the Group, its associates and joint financial statements section of our report, including in
ventures as at March 31, 2023, their consolidated profit relation to these matters. Accordingly, our audit included
including other comprehensive income, their consolidated the performance of procedures designed to respond to
cash flows and the consolidated statement of changes in our assessment of the risks of material misstatement of
equity for the year ended on that date. the consolidated financial statements. The results of audit
procedures performed by us and by other auditors of
Basis for Opinion components not audited by us, as reported by them in their
We conducted our audit of the consolidated Ind AS audit reports furnished to us by the management, including
financial statements in accordance with the Standards on those procedures performed to address the matters
Auditing (SAs), as specified under section 143(10) of the below, provide the basis for our audit opinion on the
Act. Our responsibilities under those Standards are further accompanying consolidated Ind AS financial statements.
Revenue recognition
Revenue from the sale of goods (hereinafter referred to Our audit procedures included the following:
as “Revenue”) is recognised when the Group performs
Assessed the Group’s revenue recognition accounting
its obligation to its customers and the amount of
policies in line with Ind AS 115 (“Revenue from
revenue can be measured reliably and recovery of the
Contracts with Customers”) and tested thereof.
consideration is probable. The timing of such revenue
recognition in case of sale of goods is when the control Evaluated the integrity of the general information
over the same is transferred to the customer, which is and technology control environment and testing the
mainly upon delivery. operating effectiveness of key IT application controls
over recognition of revenue.

The timing of revenue recognition is relevant to the Evaluated the design, implementation and operating
reported performance of the Group. The management effectiveness of Group’s controls in respect of revenue
considers revenue as a key measure for evaluation of recognition.
performance. There is a risk of revenue being recorded Tested the effectiveness of such controls over
before control is transferred. revenue cut off at year-end.
Refer Note 1 to the Consolidated Ind AS Financial On a sample basis, tested supporting documentation
Statements - Significant Accounting Policies and for sales transactions recorded during the year which
Note 22A / 22B. 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.
Impairment assessment of Capital Work in Progress (Hotel) and valuation of Inventories (Residential
Apartments) of WelcomHotels Lanka (Private) Limited (‘WLPL’), a wholly owned subsidiary
WLPL is developing a mixed-use project in Colombo, Our audit procedures included the following:
Sri Lanka which includes a hotel and a residential Obtained understanding of the Company’s policy on
apartment complex. At March 31, 2023, the carrying assessment of impairment of PPE and determination
value of Capital Work in Progress (‘CWIP’) and of net realisable value for inventory and assumptions
inventories (excluding leasehold land value of used by the management including design and
` 207.08 crores) is ` 1,018.03 crores and implementation of controls.
` 693.63 crores respectively. In view of the deterioration
in the macro - economic scenario in Sri Lanka, Obtained and read the projections / estimated selling
the management of WLPL has performed impairment price / future cashflows along with sensitivity analysis
assessment for its capital work in progress of the thereof.
Hotel (PPE) and net realisable value assessment for Discussed and obtained assessment of recoverable
the inventory of the residential apartments. value of PPE and inventory from component auditor.
The processes and methodologies for assessing and Evaluated management’s methodology, assumptions
determining the recoverable value of the project are and estimates used in the calculations.
based on assumptions, that by their nature imply the Involved valuation specialist to review the
use of the management’s judgement, in particular with appropriateness of methodology and key assumptions
reference to forecast of future cash flows, selling price, considered by management to determine discounted
balance cost to complete the project, selling costs, future cash flows.
terminal value, long-term growth rates and discount
rates applied to such forecasted cash flows. Considering Performed sensitivity analysis around impact on
the judgement required for estimating the cash flows future cash flows due to changes in key assumptions
and the assumptions used, this is considered as a key considered by management.
audit matter. Verified the arithmetical accuracy of the future cash flow
Refer Note 1 - Significant Accounting Policies and model including comparison with approved budgets.
Note 2 - Use of estimates and judgements to the Assessed the recoverability of PPE with regard to the
Consolidated Ind AS Financial Statements. value in use and net realisable value of inventory.

Information Other than the Financial Statements and maintenance of adequate internal financial controls, that
Auditor’s Report Thereon were operating effectively for ensuring the accuracy and
The Holding Company’s Board of Directors is responsible completeness of the accounting records, relevant to the
for the other information. The other information comprises preparation and presentation of the consolidated financial
the information included in the Annual Report, but does statements that give a true and fair view and are free from
not include the consolidated financial statements and our material misstatement, whether due to fraud or error,
auditor’s report thereon. which have been used for the purpose of preparation of
the consolidated financial statements by the Directors of
Our opinion on the consolidated Ind AS financial
the Holding Company, as aforesaid.
statements does not cover the other information and we
In preparing the consolidated Ind AS financial statements,
do not express any form of assurance conclusion thereon.
the respective Board of Directors of the companies
In connection with our audit of the consolidated Ind AS included in the Group and of its associates and joint
financial statements, our responsibility is to read the other ventures are responsible for assessing the ability of the
information and, in doing so, consider whether such other Group and of its associates and joint ventures to continue
information is materially inconsistent with the consolidated as a going concern, disclosing, as applicable, matters
Ind AS financial statements or our knowledge obtained in related to going concern and using the going concern
the audit or otherwise appears to be materially misstated. basis of accounting unless management either intends
If, based on the work we have performed, we conclude that to liquidate the Group or to cease operations, or has no
there is a material misstatement of this other information, realistic alternative but to do so.
we are required to report that fact. We have nothing to
Those respective Board of Directors of the companies
report in this regard.
Responsibilities of Management for the Consolidated ventures are also responsible for overseeing the financial
Financial Statements reporting process of the Group and of its associates and
joint ventures.
The Holding Company’s Board of Directors is
responsible for the preparation and presentation of these Auditor’s Responsibilities for the Audit of the
consolidated Ind AS financial statements in terms of the Consolidated Ind AS Financial Statements
requirements of the Act that give a true and fair view of
Our objectives are to obtain reasonable assurance about
the consolidated financial position, consolidated financial
whether the consolidated Ind AS financial statements as
performance including other comprehensive income,
a whole are free from material misstatement, whether
consolidated cash flows and consolidated statement of
due to fraud or error, and to issue an auditor’s report that
changes in equity of the Group including its associates
includes our opinion. Reasonable assurance is a high
and joint ventures in accordance with the accounting
level of assurance, but is not a guarantee that an audit
principles generally accepted in India, including the
conducted in accordance with SAs will always detect a
Indian Accounting Standards (Ind AS) specified under
material misstatement when it exists. Misstatements can
section 133 of the Act read with the Companies (Indian
arise from fraud or error and are considered material if,
Accounting Standards) Rules, 2015, as amended.
individually or in the aggregate, they could reasonably be
The respective Board of Directors of the companies
expected to influence the economic decisions of users
taken on the basis of these consolidated Ind AS financial
ventures are responsible for maintenance of adequate
statements.
accounting records in accordance with the provisions of
the Act for safeguarding of the assets of the Group and As part of an audit in accordance with SAs, we exercise
of its associates and joint ventures and for preventing professional judgement and maintain professional
and detecting frauds and other irregularities; selection skepticism throughout the audit. We also:
and application of appropriate accounting policies; Identify and assess the risks of material misstatement
making judgements and estimates that are reasonable of the consolidated Ind AS financial statements,
and prudent; and the design, implementation and whether due to fraud or error, design and perform audit

procedures responsive to those risks, and obtain audit express an opinion on the consolidated Ind AS financial
evidence that is sufficient and appropriate to provide a statements. We are responsible for the direction,
basis for our opinion. The risk of not detecting a material supervision and performance of the audit of the financial
misstatement resulting from fraud is higher than for one statements of such entities included in the consolidated
resulting from error, as fraud may involve collusion, Ind AS financial statements of which we are the
forgery, intentional omissions, misrepresentations, or independent auditors. For the other entities included
the override of internal control. in the consolidated Ind AS financial statements, which
• Obtain an understanding of internal control relevant to have been audited by other auditors, such other auditors
the audit in order to design audit procedures that are remain responsible for the direction, supervision and
performance of the audits carried out by them. We
appropriate in the circumstances. Under section 143(3)(i)
remain solely responsible for our audit opinion.
of the Act, we are also responsible for expressing our
opinion on whether the Holding Company has adequate We communicate with those charged with governance of
internal financial controls with reference to financial the Holding Company and such other entities included
statements in place and the operating effectiveness of in the consolidated Ind AS financial statements of which
such controls. we are the independent auditors regarding, among
other matters, the planned scope and timing of the audit
• Evaluate the appropriateness of accounting policies
and significant audit findings, including any significant
used and the reasonableness of accounting estimates
deficiencies in internal control that we identify during
and related disclosures made by management.
our audit.
• Conclude on the appropriateness of management’s use
We also provide those charged with governance
of the going concern basis of accounting and, based
with a statement that we have complied with relevant
on the audit evidence obtained, whether a material
ethical requirements regarding independence, and
uncertainty exists related to events or conditions that
to communicate with them all relationships and other
may cast significant doubt on the ability of the Group
matters that may reasonably be thought to bear on our
and its associates and joint ventures to continue
independence, and where applicable, related safeguards.
as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention From the matters communicated with those charged
in our auditor’s report to the related disclosures in the with governance, we determine those matters that were
consolidated financial statements or, if such disclosures of most significance in the audit of the consolidated Ind
are inadequate, to modify our opinion. Our conclusions AS financial statements for the financial year ended
are based on the audit evidence obtained up to the March 31, 2023 and are therefore the key audit matters.
date of our auditor’s report. However, future events or We describe these matters in our auditor’s report unless
conditions may cause the Group and its associates and law or regulation precludes public disclosure about
joint ventures to cease to continue as a going concern. the matter or when, in extremely rare circumstances,
we determine that a matter should not be communicated
• Evaluate the overall presentation, structure and content
in our report because the adverse consequences of doing
of the consolidated Ind AS financial statements,
so would reasonably be expected to outweigh the public
including the disclosures, and whether the consolidated
interest benefits of such communication.
Ind AS financial statements represent the underlying
transactions and events in a manner that achieves fair Other Matter
presentation. (a) We did not audit the financial statements and other
• Obtain sufficient appropriate audit evidence regarding financial information, in respect of twenty-two
the financial information of the entities or business subsidiaries, whose financial statements include total
activities within the Group and its associates and joint assets of ` 6,521.59 crores as at March 31, 2023,
ventures of which we are the independent auditors and total revenues of ` 3,274.91 crores and net
and whose financial information we have audited, to cash inflows of ` 177.51 crores for the year ended

on that date. These financial statement and other Report on Other Legal and Regulatory Requirements
financial information have been audited by other 1. As required by the Companies (Auditor’s Report)
auditors, which financial statements, other financial Order, 2020 (“the Order”), issued by the Central
information and auditor’s reports have been furnished Government of India in terms of sub-section (11) of
to us by the management. The consolidated Ind AS Section 143 of the Act, based on our audit and on
financial statements also include the Group’s share the consideration of report of the other auditors on
of net profit of ` 49.04 crores for the year ended separate financial statements and the other financial
March 31, 2023, as considered in the consolidated information of the subsidiary companies, associate
financial statements, in respect of eight associates companies and joint ventures, incorporated in India,
and four joint ventures, whose financial statements, as noted in the ‘Other Matter’ paragraph we give in the
other financial information have been audited by other “Annexure 1” a statement on the matters specified in
auditors and whose reports have been furnished to us paragraph 3(xxi) of the Order.
by the management. Our opinion on the consolidated 2. As required by Section 143(3) of the Act, based on our
Ind AS financial statements, in so far as it relates to audit and on the consideration of report of the other
the amounts and disclosures included in respect of auditors on separate financial statements and the other
these subsidiaries, joint ventures and associates, financial information of subsidiaries, associates and
and our report in terms of sub-section (3) of joint ventures, as noted in the ‘other matter’ paragraph
Section 143 of the Act, in so far as it relates to the we report, to the extent applicable, that:
aforesaid subsidiaries, joint ventures and associates, (a) We / the other auditors whose report we have relied
is based solely on the reports of such other auditors. upon have sought and obtained all the information
Certain of these subsidiaries are located outside and explanations which to the best of our knowledge
India whose financial statements and other financial and belief were necessary for the purposes of our
information have been prepared in accordance with audit of the aforesaid consolidated Ind AS financial
accounting principles generally accepted in their statements;
respective countries and which have been audited (b) In our opinion, proper books of account as required
by other auditors under generally accepted auditing by law relating to preparation of the aforesaid
standards applicable in their respective countries. consolidation of the financial statements have been
The Holding Company’s management has converted kept so far as it appears from our examination of
the financial statements of such subsidiaries located those books and reports of the other auditors;
outside India from accounting principles generally (c) The Consolidated Balance Sheet, the Consolidated
accepted in their respective countries to accounting Statement of Profit and Loss including the Statement
principles generally accepted in India. We have of Other Comprehensive Income, the Consolidated
audited these conversion adjustments made by Cash Flow Statement and Consolidated Statement
the Holding Company’s management. Our opinion of Changes in Equity dealt with by this Report are
in so far as it relates to the balances and affairs of in agreement with the books of account maintained
such subsidiaries located outside India is based for the purpose of preparation of the consolidated
on the report of other auditors and the conversion Ind AS financial statements;
adjustments prepared by the management of the (d) In our opinion, the aforesaid consolidated Ind AS
Holding Company and audited by us. financial statements comply with the Accounting
Our opinion above on the consolidated Ind AS financial Standards specified under Section 133 of the
statements, and our report on Other Legal and Regulatory Act, read with Companies (Indian Accounting
Requirements below, is not modified in respect of the Standards) Rules, 2015, as amended;
above matters with respect to our reliance on the work (e) On the basis of the written representations received
done and the reports of the other auditors. from the directors of the Holding Company as on

March 31, 2023 taken on record by the Board of iii. There has been no delay in transferring
Directors of the Holding Company and the reports amounts, required to be transferred, to the
of the statutory auditors who are appointed under Investor Education and Protection Fund by the
Section 139 of the Act, of its subsidiary companies, Holding Company, its subsidiaries, associates
associate companies and joint ventures, none and joint ventures, incorporated in India during
of the directors of the Group’s companies, its the year ended March 31, 2023.
associates and joint ventures, incorporated iv. a) The respective managements of the Holding
in India, is disqualified as on March 31, 2023 Company and its subsidiaries, associates
from being appointed as a director in terms of and joint ventures which are companies
Section 164 (2) of the Act; incorporated in India whose financial
(f)
With respect to the adequacy of the internal statements have been audited under the
financial controls with reference to consolidated Ind Act have represented to us and the other
AS financial statements of the Holding Company auditors of such subsidiaries, associate and
and its subsidiary companies, associate companies joint ventures respectively that, to the best
and joint ventures, incorporated in India, and the of its knowledge and belief, no funds have
operating effectiveness of such controls, refer to been advanced or loaned or invested (either
our separate Report in “Annexure 2” to this report; from borrowed funds or share premium
(g) In our opinion and based on the consideration of or any other sources or kind of funds)
reports of other statutory auditors of the subsidiaries, by the Holding Company or any of such
associates and joint ventures incorporated in India, subsidiaries, associates and joint ventures
the managerial remuneration for the year ended to or in any other person or entity, including
March 31, 2023 has been paid / provided by the foreign entities (“Intermediaries”), with the
Holding Company, its subsidiaries, associates and understanding, whether recorded in writing
or otherwise, that the Intermediary shall,
joint ventures incorporated in India to their directors
whether, directly or indirectly lend or invest
in accordance with the provisions of Section 197
in other persons or entities identified in any
read with Schedule V to the Act;
manner whatsoever by or on behalf of the
(h) With respect to the other matters to be included respective Holding Company or any of such
in the Auditor’s Report in accordance with Rule subsidiaries, associates and joint ventures
11 of the Companies (Audit and Auditors) Rules, (“Ultimate Beneficiaries”) or provide any
2014, as amended, in our opinion and to the best of guarantee, security or the like on behalf of
our information and according to the explanations the Ultimate Beneficiaries;
given to us and based on the consideration of the
b) The respective managements of the Holding
report of the other auditors on separate financial
Company and its subsidiaries, associates
statements as also the other financial information
and joint ventures which are companies
of the subsidiaries, associates and joint ventures,
incorporated in India whose financial
as noted in the ‘Other matter’ paragraph:
statements have been audited under the
i. The consolidated Ind AS financial statements Act have represented to us and the other
disclose the impact of pending litigations on its auditors of such subsidiaries, associates and
consolidated financial position of the Group, its joint ventures respectively that, to the best
associates and joint ventures in its consolidated of its knowledge and belief, no funds have
financial statements – Refer Note 28(iv)(a) to been received by the respective Holding
the consolidated Ind AS financial statements; Company or any of such subsidiaries,
ii. The Group, its associates and joint ventures associates and joint ventures from any
did not have any material foreseeable losses in person or entity, including foreign entities
long-term contracts including derivative (“Funding Parties”), with the understanding,
contracts during the year ended March 31, 2023; whether recorded in writing or otherwise,

that the Holding Company or any of such As stated in Note B of Statement of Changes
subsidiaries, associates and joint ventures in Equity to the consolidated Ind AS financial
shall, whether, directly or indirectly, lend or statements, the respective Board of Directors
invest in other persons or entities identified of the Holding Company, its subsidiaries, its
in any manner whatsoever by or on behalf of associates and a joint venture, incorporated in
the Funding Party (“Ultimate Beneficiaries”) India have proposed final dividend for the year
or provide any guarantee, security or the like which is subject to the approval of the members
on behalf of the Ultimate Beneficiaries; and of the respective companies at the respective
c) Based on the audit procedures that have ensuing Annual General Meeting. The dividend
been considered reasonable and appropriate declared is in accordance with Section 123 of
in the circumstances performed by us the Act to the extent it applies to declaration of
and that performed by the auditors of the dividend.
subsidiaries, associates and joint ventures vi. As proviso to Rule 3(1) of the Companies
which are companies incorporated in India (Accounts) Rules, 2014 is applicable only
whose financial statements have been w.e.f. April 1, 2023 for the Holding Company,
audited under the Act, nothing has come to its subsidiaries, associates and joint ventures
our or other auditor’s notice that has caused incorporated in India, hence reporting under
us or the other auditors to believe that the this clause is not applicable.
representations under sub-clause (a) and
(b) contain any material mis-statement.
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
per Arvind Sethi
during the year by the Holding Company and
Partner
its subsidiaries until the date of the respective
audit report of such Holding Company is in Place of Signature: Frankfurt
accordance with Section 123 of the Act. Date: May 18, 2023 UDIN: 23089802BGYPWK1709

Annexure 1 referred to in paragraph 1 under the heading “Report
on Other legal and Regulatory Requirements” of our report of even date
Re: ITC Limited (the “Holding Company”)
In terms of the information and explanations sought by us and given by the Holding 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 and based on the
consideration of report of respective auditors of the subsidiary companies, associates and joint ventures incorporated in
India, we state that:
(xxi) There are no qualifications or adverse remarks by the respective auditors in their report on Companies
(Auditors Report) Order, 2020 of the companies included in the consolidated financial statements. As indicated in
Note 28 (iii)(d) of the Ind AS Consolidated financial statements, in respect of a joint venture, consolidated based on
management accounts, the audit report under Companies (Auditors Report) Order, 2020 of the company has not
been issued till the date of our auditor’s report.
per Arvind Sethi

Partner
Date: May 18, 2023 UDIN: 23089802BGYPWK1709
Annexure 2 to the Independent Auditor’s Report of even date on

the Consolidated Financial Statements of ITC Limited
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act,
2013 (“the Act”)
In conjunction with our audit of the consolidated financial statements of ITC Limited (hereinafter referred to as the “Holding
Company”) as of and for the year ended March 31, 2023, we have audited the internal financial controls with reference to
consolidated financial statements of the Holding Company and its subsidiaries (the Holding Company and its subsidiaries
together referred to as “the Group”), its associates and joint ventures, which are companies incorporated in India, as of
that date.
Management’s Responsibility for Internal Financial Controls
The respective Board of Directors of the companies included in the Group, its associates and joint ventures, which are
companies incorporated in India, are responsible for establishing and maintaining internal financial controls based on the
internal control over financial reporting criteria established by the Holding Company considering the essential components
of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued
by the Institute of Chartered Accountants of India (ICAI). These responsibilities include the design, implementation and
maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient
conduct of its business, including adherence to the respective company’s policies, the safeguarding of its assets, the
prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely
preparation of reliable financial information, as required under the Companies Act, 2013.
Our responsibility is to express an opinion on the Holding Company’s internal financial controls with reference to consolidated
financial statements based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of
Internal Financial Controls Over Financial Reporting (the “Guidance Note”) and the Standards on Auditing, specified under
Section 143(10) of the Act, to the extent applicable to an audit of internal financial controls, both, issued by ICAI. Those
Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to
obtain reasonable assurance about whether adequate internal financial controls with reference to consolidated financial
statements was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls
with reference to consolidated financial statements and their operating effectiveness. Our audit of internal financial controls
with reference to consolidated financial statements included obtaining an understanding of internal financial controls with
reference to consolidated financial statements, assessing the risk that a material weakness exists, and testing and evaluating
the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on
the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether
due to fraud or error.
We believe that the audit evidence we have obtained and the audit evidence obtained by the other auditors in terms of
their reports referred to in the Other Matters paragraph below, is sufficient and appropriate to provide a basis for our audit
opinion on the internal financial controls with reference to consolidated financial statements.
Meaning of Internal Financial Controls With Reference to Consolidated Financial Statements

A company’s internal financial control with reference to consolidated financial statements is a process designed to provide
reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting principles. A company’s internal financial control with reference
to consolidated financial statements includes those policies and procedures that (1) pertain to the maintenance of records
that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2)
provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in
accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being
made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable
assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company’s assets
that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls With Reference to Consolidated Financial Statements
Because of the inherent limitations of internal financial controls with reference to consolidated 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. Also, projections of any evaluation of the internal financial controls with reference to
consolidated financial statements to future periods are subject to the risk that the internal financial controls with reference
to consolidated financial statements may become inadequate because of changes in conditions, or that the degree of
compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Group, its associates and joint ventures, which are companies incorporated in India, have, maintained
in all material respects, adequate internal financial controls with reference to consolidated financial statements and
such internal financial controls with reference to consolidated financial statements were operating effectively as at
March 31, 2023, based on the internal control over financial reporting criteria established by the Holding Company
considering the essential components of internal control stated in the Guidance Note issued by the ICAI.
Other Matters
Our report under Section 143(3)(i) of the Act on the adequacy and operating effectiveness of the internal financial controls
with reference to consolidated financial statements of the Holding Company, in so far as it relates to these ten subsidiaries,
seven associates and two joint ventures, which are companies incorporated in India, is based on the corresponding reports
of the auditors of such subsidiaries, associates and joint ventures incorporated in India.

per Arvind Sethi

Partner
Date: May 18, 2023 UDIN: 23089802BGYPWK1709

Ten Years at a Glance
Standalone Operating Results FY14 - FY23 (` in Crores)
Year ended 31st March FY14$ FY15$ FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23
Gross Sales Value (net of rebates & discounts) # 53889 57799 60196 64174 67082 75309 76097 74979 90104 106625
Gross Revenue from sale of products &
services # 46713 49965 51582 55002 43957 45221 46324 48151 59101 69481
Total Income # 48176 51932 53714 57434 46460 48269 49821 51776 62336 72689
EBITDA 12455 13474 13715 14578 15541 17306 17904 15523 18934 23944
PBT 12659 13998 14434 15503 16439 18444 19299 17164 19830 24677
Exceptional items 413 (132) 73
PBT after Exceptional Items 12659 13998 14434 15503 16852 18444 19167 17164 19830 24750
Tax 3874 4390 5106 5302 5628 5980 4031 4133 4772 5997
PAT 8785 9608 9328 10201 11223 12464 15136 13032 15058 18753
Interim + Proposed Dividends * 5583 6030 8233 6945 7577 8498 12477 13230 14172 19255
- Ordinary Dividend 5583 6030 6296 6945 7577 8498 12477 13230 14172 15837
- Special Dividend 1937 3418
Earnings Per Share
Actual (`) 11.09 12.05 11.61 8.43 9.22 10.19 12.33 10.59 12.22 15.15
Adjusted (`) @ 7.39 8.03 7.74 8.43 9.22 10.19 12.33 10.59 12.22 15.15
Dividend Per Share
Actual - Ordinary (`) 6.00 6.25 6.50 4.75 5.15 5.75 10.15 10.75 11.50 12.75
Actual - Special (`) 2.00 2.75
Adjusted - Ordinary (`) @ 4.00 4.17 4.33 4.75 5.15 5.75 10.15 10.75 11.50 12.75
Adjusted - Special (`) @ 1.33 2.75
$ FY16 to FY23 as per Indian Accounting Standards (Ind AS); previous GAAP for earlier years.
# Gross Sales Value (net of rebates & discounts) has been provided to facilitate comparison as the figures of Gross Revenue from sale of products & services and Total Income are not
comparable consequent to the introduction of Goods & Services Tax with effect from 1st July 2017, which replaced Central Excise (other than National Calamity Contingent Duty on
cigarettes), Value Added Tax etc.
* Including Dividend Distribution Tax, where applicable.
@ To facilitate like-to-like comparison, adjusted for 1:2 Bonus Issue in FY17.
Note : F inancials for FY21 & FY22 were impacted by unprecedented disruptions in certain operating segments of the Company due to the COVID-19 pandemic.
Standalone Equity, Liabilities and Assets FY14 - FY23

(` in Crores)
As at 31st March FY14$ FY15$ FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23
Equity
Share capital 795 802 805 1215 1220 1226 1229 1231 1232 1243
Other equity 25467 29934 40851 44126 50180 56724 62800 57774 60168 66351
Shareholders’ funds (Net Worth) 26262 30736 41656 45341 51400 57950 64029 59005 61400 67594
Borrowings 51 39 26 18 11 8 6 5 5 3
Deferred tax liabilities (Net) 1297 1632 1867 1872 1918 2044 1618 1728 1667 1621
Non-current liabilities (others) ^ 115 108 127 155 195 174 493 669 543 628
Current liabilities
Borrowings @@ 15 14 16 8 7 3 2 … 1 1
Proposed dividend (including tax) 5583 6030
Current liabilities (others) ^ 5906 5637 6339 6822 8850 9619 9087 10173 11477 12415
Total Equity and Liabilities 39229 44196 50031 54216 62381 69798 75235 71580 75093 82262
Non-current assets
Property, plant and equipment, intangible
assets (including capital work-in-progress,
intangible assets under development),
investment property and right of use assets ^ 14309 16293 16430 18417 20592 21888 23298 25521 25688 25871
Non-current investments 2512 2442 6853 8486 13494 14071 13456 12937 15657 16364
Non-current assets (others) 1480 1506 3515 2776 3792 4269 1974 1306 2806 4824
Current assets
Current investments 6311 5964 6471 10100 9903 12507 17175 14047 11625 16357
Cash and cash equivalents and Other bank
balances 3289 7589 5639 2747 2595 3769 6843 4002 3878 3831
Current assets (others) 11328 10402 11123 11690 12005 13294 12489 13767 15439 15015
Total Assets 39229 44196 50031 54216 62381 69798 75235 71580 75093 82262
Net Worth Per Share (`) * 22.01 25.56 34.51 37.33 42.12 47.27 52.09 47.94 49.82 54.39
$ FY16 to FY23 as per Ind AS; previous GAAP for earlier years.
* To facilitate like-to-like comparison, adjusted for 1:2 Bonus Issue in FY17.
Equity includes impact of :
FY17 - 1:2 Bonus Issue (` 403 Crores).
FY15 - 87,761 Ordinary Shares of ` 1.00 each issued pursuant to Scheme of Amalgamation of Non-Engineering Business of WIMCO Limited with the Company.
^ Includes right of use assets and lease liabilities from FY20 upon transition to Ind AS-116, “Leases”.
@@ To facilitate like-to-like comparison, figures for earlier years have been regrouped in line with amendment to Schedule III to the Companies Act, 2013.

Financial Highlights
Gross Sales Value# ` Crores ` Crores

EBITDA
106625
23944
90104
18934
17904
76097
17306
75309
74979
15541
15523
67082
64174
14578
60196
13715
13474
57799
53889
12455
FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23
# Refer Note to Ten Years at a Glance
Segment Revenue - FMCG - Others ` Crores Segment EBITDA - FMCG - Others ` Crores
19123
1954
15994
14728
1449
12844
12505
1317
11329
10512
9731
9038
8122
914
688
456
306
265
212
165
Dividend ` Crores Earnings Per Share and Dividend Per Share ` Per Share
Ordinary Dividend Earnings Per Share

Special Dividend Dividend Per Share
3418
Special Dividend Per Share

2.75
15.15
15837
12.75
14172
1937
12.33
12.22
13230
11.50
12477
10.75
1.60
10.59
10.19
10.15
9.22
8.43
8.03
8498
7.74
7.39
7577
6.93
6945
6.21
6296
6030
5.72
5583
5.22
5.01
4.68
Includes Dividend Distribu on Tax, where applicable
These graphs depict the standalone financial position

Notes:
• Financials for FY21 & FY22 were impacted by unprecedented disruptions in certain operating segments of the Company
due to the COVID-19 pandemic.
• EPS and DPS have been adjusted for impact of corporate action to facilitate like-to-like comparison.
• FY16 to FY23 as per Ind AS; previous GAAP for earlier years.
Business Responsibility
REPORT AND ACCOUNTS 2023 and Sustainability Report
and Sustainability Report
Glossary II
Section A General Disclosures III
Section B Management and Process Disclosures XII
Section C Principle wise Performance Disclosure XV
Businesses should conduct and govern themselves with integrity, and in

Principle 1 XV
a manner that is Ethical, Transparent and Accountable
Businesses should provide goods and services in a manner that is

Principle 2 XVII
sustainable and safe
Businesses should respect and promote the well-being of all

Principle 3 XXI
employees, including those in their value chains
Businesses should respect the interests of and be responsive to all its

Principle 4 XXVII
stakeholders
Principle 5 Businesses should respect and promote human rights XXX
Businesses should respect and make efforts to protect and restore the
Principle 6 XXXIV
environment
Businesses, when engaging in influencing public and regulatory policy,

Principle 7 XLI
should do so in a manner that is responsible and transparent
Principle 8 Businesses should promote inclusive growth and equitable development XLIII
Businesses should engage with and provide value to their consumers in

Principle 9 XLVII
a responsible manner
I
and Sustainability Report REPORT AND ACCOUNTS 2023
Glossary
ITC Divisions
ABD: Agri Business Division
ESPB: Education & Stationery Products Business
FBD: Foods Business Division
HD: Hotels Division
ITD: India Tobacco Division
MAB: Safety Matches & Agarbattis
PCPBD: Personal Care Products Business Division
PPB: Packaging & Printing Business
PSPD: Paperboards & Specialty Papers Division
TM&D: Trade Marketing & Distribution
ITC Specific Terms

CAPP: Core Area Perspective Plan
CMC: Corporate Management Committee
FTC: Fixed Term Contract
FTR: Fixed Term Retainer
ISC: Investor Service Centre
ITCMAARS: ITC Meta Market for Advanced Agriculture and Rural Services
LSTC: Life Sciences & Technology Centre
MSK: Mission Sunehra Kal
SBU: Strategic Business Unit
SCRC: Sustainability Compliance Review Committee
SIP: Social Investments Programme
SPP: Service Provider Personnel
TPMs: Third-Party Manufacturers
WOW: Well Being Out of Waste
General Terms
ABC: Agri-Business Centre
ATNI: Access to Nutrition Initiative
ASCI: Advertising Standards Council of India
AWS: Alliance for Water Stewardship
CSR: Corporate Social Responsibility
ECF: Elemental Chlorine Free
EHS: Environment, Health and Safety
ESG: Environment, Social and Governance
FPO: Farmers’ Producer Organisation
FSC®: Forest Stewardship Council®
FSSAI:The Food Safety and Standards Authority of India
GAP: Good Agricultural Practices
GP: Gram Panchayat
HACCP: Hazard Analysis and Critical Control Points
LCA: Life-Cycle Assessment
LEED: Leadership in Energy and Environmental Design
MCH: Mother and Child Health
MMU: Mobile Medical Unit
MPSRLM: Madhya Pradesh State Rural Livelihood Mission
MoU: Memorandum of Understanding
NA: Not Applicable
NGRBC: National Guidelines on Responsible Business Conduct
NOP: National Organic Programme
NPOP: National Programme for Organic Production
PPP: Public-Private Partnership
RFA: Rainforest Alliance
SEBI: Securities and Exchange Board of India
SEDEX: Supplier Ethical Data Exchange
SC: Scheduled Caste
ST: Scheduled Tribe
SHG: Self Help Group
SOP: Standard Operating Procedure
STP: Sustainable Tobacco Programme
UoM: Unit of Measurement
II
Section A: General Disclosures

I. Details of the Listed Entity:
1. Corporate Identity Number L16005WB1910PLC001985
(CIN) of the Company
2. Name of the Company ITC Limited

3. Year of Incorporation 1910
4. Registered Office Address

Virginia House, 37 Jawaharlal Nehru Road, Kolkata 700 071
5. Corporate Office Address
6. E-mail Id [email protected]
7. Telephone +91 33 2288 9371
8. Website www.itcportal.com
9. Financial Year for which 2022-23
Reporting is Being Done
10. Name of the National Stock Exchange of India Limited (‘NSE’), BSE Limited (‘BSE’), and
Stock Exchange(s) where The Calcutta Stock Exchange Limited (‘CSE’)
Shares are Listed
11. Paid-up Capital `1,242.80 crores (As on 31.03.2023)

12. Name and Contact Details of Ms. Madhulika Sharma
the Person who may be Chief Sustainability Officer
Contacted in Case of any [email protected]
queries on the BRSR Report +91 33 2288 9371
13. Reporting Boundary The financial disclosures made in this report are on a standalone basis, and
are excerpted from the Company’s Report and Accounts 2023. The data related
to social performance is on a standalone basis.
The environmental disclosures are based on performance of Company’s
Businesses, certain subsidiaries and associates, and key Third-Party
Manufacturers (TPMs). The details are available in ‘About this Report’ section
of ITC Sustainability & Integrated Report 2023.
II. Products/Services
14. Details of Business Activities:
S. Description of % of Turnover
Description of Business Activity
No. Main Activity of the Entity
1. FMCG Cigarettes: Cigarettes, Cigars etc. 40.60%
Others: Branded Packaged Foods Businesses (Staples & Meals;

Snacks; Dairy & Beverages; Biscuits & Cakes; Chocolates, Coffee & 27.46%
Confectionery); Education and Stationery Products; Personal Care
Products; Safety Matches and Agarbattis.
2. Hotels Hoteliering. 3.70%

3. Agri Business Agri-commodities such as wheat, rice, spices, coffee, soya and leaf 17.72%
tobacco.
4. Paperboards, Paperboards, Paper including Specialty Paper and Packaging including 10.51%
Paper & Packaging flexibles.
III
15. Products/Services sold by the entity:
S. % of Total Turnover
No. Product/Service NIC Code Contributed
1 Cigarettes: Cigarettes, Cigars etc. 12003, 21002, 46307 40.60%
2 Others: Branded Packaged Foods 10202, 10304, 10308, 10402,

Businesses (Staples & Meals; Snacks; 10501, 10504, 10509, 10611,
Dairy & Beverages; Biscuits & Cakes; 10712, 10732, 10733, 10740,
Chocolates, Coffee & Confectionery); 10750, 10792, 10795, 10796, 27.46%
Education and Stationery Products; 10798, 20231, 20233, 20234,
Personal Care Products; Safety 20236, 20237, 20239, 20293,
Matches and Agarbattis. 46411, 46491, 46496, 46497, 46909
3 Hoteliering 55101, 56101, 56301, 74909,

47110, 47190, 68200, 77400, 3.70%
79900, 96010, 96020, 96905
4 Agri-commodities such as wheat, rice, 12001, 10209, 10304, 10406, 10611,

spices, coffee, soya and leaf tobacco. 10795, 20213, 46201, 46207, 46301,
46305, 46306, 47300, 47737 17.72%
5 Paperboards, Paper including Specialty 17015, 17016, 17093,

Paper and Packaging including flexibles. 17022, 17029, 22203 10.51%
III. Operations
16. Number of Locations where Plants and/or Operations/Offices of the Entity are Situated.
The Company’s Businesses and operations are spread across the country. Details of plant locations, including hotels
owned/operated by the Company, are provided under the section ‘Shareholder Information’ in Company’s Report and
Accounts 2023.
Location Number of Plants Number of Offices Total
National 105 54 159
International 0 1 1
17. Markets Served by the Entity

a. Number of Locations
Location Number
National (No. of States) 28 States and 7 Union Territories
International (No. of Countries) 110 Countries
b. What is the Contribution of Exports as a Percentage of the Total Turnover of the Entity?
FY 2022-23 14.98%
FY 2021-22 15.77%
c. A Brief on Types of Customers

ITC is one of India’s foremost private sector companies and a diversified conglomerate with 12 businesses spanning
FMCG, Hotels, Paperboards, Paper & Packaging and Agri Businesses, and operates across all the three sectors of the
economy – Agri, Manufacturing and Services. The Company’s vibrant portfolio of over 25 world-class Indian brands,
largely built through an organic growth strategy in a relatively short period of time, represents an annual consumer
spend of nearly ₹29000 crores and reach over 230 million households in India.
IV
IV. Employees
18. Details as at the End of Financial Year:
a. Employees and Workers (including Differently Abled):
During FY 2022-23, the Company employed 49,824 employees, out of which 6,330 were female employees.
S. Male Female
Particulars Total (A)
No. No. (B) % (B/A) No. (C) % (C/A)
EMPLOYEES
1 Permanent (D) 23,725 21,337 90% 2,388 10%
2 Other than Permanent (E) 26,099 22,157 85% 3,942 15%
3 Total Employees (D + E) 49,824 43,494 87% 6,330 13%
WORKERS
4 Permanent (F) 12,602 11,948 95% 654 5%
5 Other than Permanent (G) 25,987 22,061 85% 3,926 15%
6 Total Workers (F + G) 38,589 34,009 88% 4,580 12%
Note: Definition of employee clustering is as under:
• Permanent Employees include Management & Non-Management Employees and Workers • Other than Permanent
Employees include Service Provider Personnel (SPP), Fixed Term Contract (FTC) and Fixed Term Retainer (FTR) (Management/
Non-management and Workers) • Permanent Workers include only Workers who are on the rolls of the Company • Other than
Permanent Workers include SPP and FTC (Worker) • Trainees and apprentices have not been included in the Workforce
b. Differently abled Employees and Workers:
During FY 2022-23, the Company employed 294 differently abled employees.
S.
No. Particulars Total Male Female
(A)
No. (B) % (B/A) No. (C) % (C/A)
DIFFERENTLY ABLED EMPLOYEES
1 Permanent (D) 38 31 82% 7 18%
2 Other than Permanent (E) 256 189 74% 67 26%
3 Total Employees (D + E) 294 220 75% 74 25%
DIFFERENTLY ABLED WORKERS
4 Permanent (F) 34 27 79% 6 18%
5 Other than Permanent (G) 98 88 90% 10 10%
6 Total Workers (F + G) 132 115 87% 16 12%
19. Participation/Inclusion/Representation of Women

Total (A) No. and Percentage of Females
No. (B) % (B/A)
Board of Directors 16 2 12.50%
Key Managerial Personnel* 5 0 0
* Comprising Chairman & Managing Director, Wholetime Directors and Company Secretary
20. Turnover Rate for Permanent Employees and Workers

In FY 2022-23, the overall attrition (voluntary separation, retirement, termination and abandonment of services)
across employees was 12%. Gender-wise attrition stood at 11% for male employees and 18% for female employees.
FY 2022-23 FY 2021-22 FY 2020-21

Male Female* Total Male Female Total Male Female Total
Permanent Employees 11% 18% 12% 9% 18% 10% 7% 15% 8%
Permanent Workers 7% 21% 7% 6% 25% 7% 6% 22% 7%
*Note: Primarily due to marriage and relocation
V
V. Holding, Subsidiary and Associate Companies (including Joint Ventures)

21. (a) Names of Holding/Subsidiary/Associate Companies/Joint Ventures (As on 31.03.2023)
S. Name of the Holding/Subsidiary/ Indicate Whether % of Shares Does the Entity Indicated at
No. Associate Companies/ Holding/Subsidiary/ Held by Column A, Participate in the Business
Joint Ventures (A) Associate/ Listed Entity* Responsibility Initiatives of the Listed
Joint Venture Entity? (Yes/No)**
1. ITC Infotech India Limited Subsidiary 100.00 Yes
2. ITC Infotech Limited Subsidiary 100.00 No
3. ITC Infotech (USA), Inc. Subsidiary 100.00 No
4. Indivate Inc. Subsidiary 100.00 No
5. ITC Infotech Do Brasil LTDA. Subsidiary 100.00 No
6. ITC Infotech Malaysia SDN. BHD. Subsidiary 100.00 No
7. ITC Infotech France SAS Subsidiary 100.00 No
8. ITC Infotech GmbH Subsidiary 100.00 No
9. Surya Nepal Private Limited Subsidiary 59.00 Yes
10. Technico Agri Sciences Limited Subsidiary 100.00 Yes
11. Technico Pty Limited Subsidiary 100.00 No
12. Technico Technologies Inc. Subsidiary 100.00 No
13. Technico Asia Holdings Pty Limited Subsidiary 100.00 No
14. Technico Horticultural (Kunming) Co. Limited Subsidiary 100.00 No
15. Srinivasa Resorts Limited Subsidiary 68.00 Yes
16. Fortune Park Hotels Limited Subsidiary 100.00 No
17. Landbase India Limited Subsidiary 100.00 Yes
18. Bay Islands Hotels Limited Subsidiary 100.00 Yes
19. WelcomHotels Lanka (Private) Limited Subsidiary 100.00 No
20. Russell Credit Limited Subsidiary 100.00 No
21. Greenacre Holdings Limited Subsidiary 100.00 No
22. Wimco Limited Subsidiary 100.00 No
23. Gold Flake Corporation Limited Subsidiary 100.00 No
24. ITC Integrated Business Services Limited (formerly Subsidiary 100.00 No
known as ITC Investments & Holdings Limited)
25. MRR Trading & Investment Company Limited Subsidiary 100.00 No
26. North East Nutrients Private Limited Subsidiary 76.00 Yes
27. Prag Agro Farm Limited Subsidiary 100.00 No
28. Pavan Poplar Limited Subsidiary 100.00 No
29. ITC IndiVision Limited Subsidiary 100.00 No
30. ITC Fibre Innovations Limited Subsidiary 100.00 No
31. Espirit Hotels Private Limited Joint Venture 26.00 No
32. Logix Developers Private Limited Joint Venture 27.90 No
33. ITC Essentra Limited Joint Venture 50.00 No
34. Maharaja Heritage Resorts Limited Joint Venture 50.00 No
35. Gujarat Hotels Limited Associate 45.78 Yes
36. International Travel House Limited Associate 48.96 No
37. Russell Investments Limited Associate 25.43 No
38. Divya Management Limited Associate 33.33 No
39. Antrang Finance Limited Associate 33.33 No
40. ATC Limited Associate 47.50 Yes
41. Delectable Technologies Private Limited Associate 33.42# No
42. Mother Sparsh Baby Care Private Limited Associate 22.00#
No
* Held directly or through subsidiary companies. # On a fully diluted basis.
Note: Refer Note 28(iii) of Consolidated Financial Statements forming part of Report and Accounts 2023 for further details on subsidiaries,
associates and joint ventures. ** For details, refer to ‘About this Report’ section of ITC Sustainability & Integrated Report 2023.
VI
VI. CSR Details

22. (i) Whether CSR is applicable as per section 135 of Companies Act, 2013: (Yes/No).
Yes, CSR is applicable as per Section 135 of Companies Act, 2013.
(ii) Turnover of the Company for the year ended 31st March, 2023 - ₹69,480.89 crores
(iii) Net worth of the Company as on 31st March, 2023 - ₹66,685.93 crores (computed as per the Companies Act, 2013)
VII. Transparency and Disclosures Compliances
23. Complaints/grievances on any of the principles (Principles 1 to 9) under the National Guidelines on Responsible
Business Conduct (NGRBC).
Stakeholder Grievance
Group from Redressal
whom Mechanism in
FY 2022-23 FY 2021-22
Complaint is Place (Yes/No)
Current Financial Year Previous Financial Year
Received (If Yes, then
provide web-link
for Grievance
Redress Policy) * Number of Number of Remarks Number of Number of Remarks
complaints complaints complaints complaints
filed during pending filed during pending
the year resolution the year resolution
at close of at close of
the year the year
Communities Yes 0 0 - 0 0 -
Investors and Yes 1 0 - 1 0 -
Shareholders
Employees Yes. 144 8 - 212 6 -

and Workers
It is available (closed after
through the ITC 31st March
Intranet 2022)
Customers Yes 18,846 1,648 - ~10,000 ~300 -
Value Chain Yes - - - - - -
Partners
*The details of grievance redressal mechanisms for each stakeholder group are provided in the table below.
Stakeholder
Group from whom Grievance Redressal Mechanism in Place
Complaint is Received
Communities In addition to all the ongoing and regular community interactions and stakeholder engagements,
ITC has initiated a structured process to capture views, issues, complaints and grievances of
community members pertaining to the operations of ITC’s Social Investments Programme (SIP).
During 2022-23, 66 such community engagements were held across all major states where
SIP projects are implemented – Andhra Pradesh, Assam, Himachal Pradesh, Rajasthan,
Karnataka, Madhya Pradesh, Maharashtra, Punjab, Telangana, Uttar Pradesh, Uttarakhand,
Bihar, Tamil Nadu and West Bengal. The sessions were conducted by ITC SIP team’s State level
managers. Meetings were Organised with community members in villages and urban catchments
wherein the programme implementing NGOs were also present. All meetings were planned and
reviewed by the SIP team at Head Office.
No grievances pertaining to the interventions under ITC Social Investments Programme were recorded.
The SIP state teams have taken cognizance of the relevant requests and expectations and
appropriate actions have been incorporated in the plans for the upcoming year.
VII
Investors and https://www.itcportal.com/investor/index.aspx

Shareholders
The Company has an Investor Service Centre (‘ISC’) which is registered with SEBI as
Category II Share Transfer Agent for providing in-house share registration and related services to
the shareholders and investors. ISC has effective systems and processes in place to ensure prompt
redressal of investor grievances, as follows:
(a) ISC has a ‘Complaint Identification Policy’ for identification of investor complaints. ISC attends
to shareholder/investor complaints within three working days, except where constrained by
disputes or legal impediments or other exceptional circumstances.
(b) The Head of ISC is responsible for redressal of investor grievances.
(c) The Company has a specific e-mail address earmarked for receiving investor complaints which
is [email protected].
(d) The ‘Investor Charter’ of the Company and the status of investor complaints received by the
Company are available on its website at https://www.itcportal.com/about-itc/shareholder-
value/investor-relations/investor-charter.aspx and https://www.itcportal.com/about-
itc/shareholder-value/pdf/investor-complaint.pdf, respectively.
(e) A Board Level Committee viz., the Securityholders Relationship Committee, has been mandated
to oversee redressal of investor grievances, and review adherence to the service standards
adopted by the Company in respect of its in-house share registration activities.
(f) Details of investor complaints received by the Company are filed on a quarterly basis with the
Stock Exchanges where the Company’s shares are listed, and with the SEBI on a half-yearly basis.
Employees and The Company, through its Grievance Redressal Policy, seeks to address employee concerns and
Workers complaints pertaining to human rights and labour practices. A Grievance Redressal Procedure
with appropriate systems and mechanisms is available across ITC Units. It aims to facilitate open
and structured discussions on grievances raised on labour practices and human rights. The
implementation is ensured by Divisional/SBU Chief Executives, through members of the respective
Management Committees of the Businesses.
Customers The Company provides various avenues to customers for raising their grievances:
• Web form on ITC’s website: https://www.itcportal.com/contact-us.aspx
• Customers can write to the following email addresses:
o [email protected]
o [email protected]
• Customers can also raise their grievances via Brand-specific websites and/or social media handles
Value Chain As per the Company’s Code of Conduct for Suppliers and Service Providers, they are expected to
Partners bring to the notice of the manager concerned at ITC, any actual or suspected breach of the Code.
Suppliers and Service Providers are encouraged to report any known or suspected improper
behaviour of ITC employees. Such reports are treated in a confidential manner.
24. Overview of the Entity’s Material Responsible Business Conduct Issues
Please indicate material responsible business conduct and sustainability issues pertaining to environmental and
social matters that present a risk or an opportunity to your business, rationale for identifying the same, approach to
adapt or mitigate the risk along with its financial implications.
VIII
S. Material Indicate Rationale for Identifying the In case of Risk, Approach Financial
No. Issue whether Risk/Opportunity to Adapt or Mitigate Implications
Identified Risk or of the Risk or
Opportunity Opportunity
(R/O) (Indicate Positive
or Negative
Implications)
1. Climate Risk Climate related physical and Physical Risk -
Change transitional disruptions may Management:
impact business operations, • Climate risk modelling
sourcing, supply chain and for identifying high-
increase compliance costs. risk/vulnerable sites
Potential Impact and agri value chains,
and undertaking
• As average temperatures
detailed assessments
rise, extreme weather
for developing locally
events are expected to
contextual adaptation
grow in terms of severity
plans, risk mitigation
and frequency which could
strategies and
have significant impact on
undertaking measures
the Company’s operations,
for improving climate
its physical assets and agri
resilience
value chains. These may
lead to complete or partial • Promotion of climate
outage of operations. smart agriculture, and
Further, these events may development of heat/
also adversely impact the drought tolerant and
availability and quality high yielding varieties to
of agri raw materials improve productivity by
and consequently, the adopting micro region-
production and sales of the specific agronomic
Company’s products practices
• Vagaries of weather caused - Micro segmentation

by climate change impact of growing zones and
crop cycles, output and developing appropriate
productivity can result in package of practices
disruption of operations/ and precision farming
supply chain techniques to mitigate
impact of weather.
• Availability of water for
- Enhancing climate
own operations as well as
resilience of farmers
farm value chains also can
through capacity building
get impacted by erratic
programmes including
precipitation patterns
leveraging ITCMAARS
app together with the
FPO (Farmers’ Producer
Organisation) ecosystem,
and supported by field
demonstrations under
Choupal Pradarshan
Khets.
IX
S. Material Indicate Rationale for Identifying the In case of Risk, Approach to Financial
No. Issue whether Risk/Opportunity Adapt or Mitigate Implications
or Negative
Implications)
• Besides physical risks, - Comprehensive
there are also transition programmes on social
risks associated with forestry, soil and moisture
climate change, that can conservation and
impact the Company’s biodiversity conservation.
operations: - Adoption of water
- Additional levies may be stewardship approach to
imposed by regulatory achieve water security for
authorities for emission/ all stakeholders within the
defined catchment areas of
water intensive industries
units located in high water
to address climate change,
stress areas.
which will lead to higher
cost of compliance, and • Diversification and
potential regulatory contingency planning of
penalties and reputational supply chain
risk in case of non- • Map risks arising out
compliance. of climate crisis, build
adaptive capacity and invest
in mitigative measures to
strengthen resilience across
the value chain
Transition Risk
Management:
• Continue to focus on energy
conservation, improving
energy productivity and
enhancing the share of
renewables in ITC’s total
energy requirement as part
of ITC’s Sustainability 2.0
targets; strengthen enterprise
sustainability and governance
mechanisms for reviewing
performance and progress
against Sustainability
2.0 targets through the
Sustainability Compliance and
Review Committee (SCRC)
• Adopt the Life-cycle
Assessment (LCA) approach
for identifying environmental
impact across a product’s
lifecycle; leverage the same
for sustainable design and
product innovation
X
S. Material Indicate Rationale for Identifying the In case of Risk, Approach to Financial
No. Issue whether Risk/Opportunity Adapt or Mitigate Implications
or Negative
Implications)
2 Product Risk Inability to comply with • Going beyond compliance -
and Plastic current or future regulation wherever possible:
Packaging on plastic packaging and/or
- Ensuring plastic neutrality
failure to meet commitments
ahead of regulatory targets
on packaging and the
through source segregation
environment.
programmes, creating
Potential Impact replicable, scalable and
sustainable models of solid
• Non-compliance to plastic
waste management, and
waste management
developing viable recycling
regulations could lead to
options for Multi-Layered
imposition of environmental
Plastic (MLP) packaging.
compensation, that
may negatively impact - Ensuring that 100% of
Company’s reputation; packaging is reusable,
additionally, stricter recyclable or compostable/
government laws around biodegradable.
usage of plastics including
• Partnering with upstream
bans may give rise to
players and suppliers
multiple challenges such
for ensuring supply of
as redesign of product
recycled plastic for meeting
packaging, shelf life-
regulatory/market demand
related issues and product
for increasing recycled
distribution issues
content in plastic packaging
• Disruptions in the supply
• Harnessing the enterprise
chain for recycled plastic
strengths of ITC (Life
or plastic packaging
Sciences and Technology
substitutes as required
Centre, Paperboards &
by law, can impact the
Specialty Paper Division
Company’s ability to comply,
and Packaging and Printing
produce and distribute
Division) in driving cutting-
products
edge innovation to offer
• Inability to provide sustainable alternatives to
sustainable alternatives single-use plastics; pursue
could have a negative sustainable packaging
impact on consumer initiatives like reduction in
sentiment plastic packaging intensity,
and improving recyclability
of plastic packaging
For more information on Risk Management Framework, refer to the ‘Risk Management Section’ of the Report of
the Board of Directors & Management Discussion and Analysis forming part of ITC’s Report and Accounts 2023, and
‘Strategic Risk Management’ section of ITC Sustainability & Integrated Report 2023.
XI
Section B: Management and Process Disclosures

The National Guidelines for Responsible Business Conduct (NGRBC) as brought out by the Ministry of Corporate
Affairs advocates nine principles referred as P1-P9 as given below:
P1 Businesses should conduct and govern themselves with integrity, and in a manner that is Ethical,
Transparent and Accountable
P2 Businesses should provide goods and services in a manner that is sustainable and safe
P3 Businesses should respect and promote the well-being of all employees, including those in their value chains
P4 Businesses should respect the interests of and be responsive to all its stakeholders
P5 Businesses should respect and promote human rights
P6 Businesses should respect and make efforts to protect and restore the environment
P7 Businesses, when engaging in influencing public and regulatory policy, should do so in a manner that is
responsible and transparent
P8 Businesses should promote inclusive growth and equitable development
P9 Businesses should engage with and provide value to their consumers in a responsible manner
Disclosure Questions P1 P2 P3 P4 P5 P6 P7 P8 P9
Policy and Management Processes

1. a. Whether your Entity’s Yes Yes Yes Yes Yes Yes Yes Yes Yes
Policy/Policies Cover Each
ITC is guided by a comprehensive set of Board-approved Policies that cover NGRBC principles
Principle and its Core (P1 to P9) and the underlying core elements.
Elements of the NGRBCs. To achieve its Sustainability 2.0 vision, the Company continues to strengthen its management
(Yes/No) approach which is guided by a comprehensive set of Sustainability Policies that are being
implemented across the organisation. The Company is also strengthening the mechanisms
of engagement with key stakeholders, identification of material sustainability issues and
progressively monitoring and mitigating the impacts along the value chain of each Business. The
Company will continue to update these systems and processes in line with evolving disclosure
standards and Environmental, Social and Governance (ESG) requirements.
The overall responsibility for ensuring the implementation of Sustainability Policies resides with the
Divisional/Strategic Business Unit (SBU) Chief Executives and the Heads of Corporate Functions
who work with their respective teams. Various committees designated with specific responsibilities
have also been constituted for operationalising these Policies. The Sustainability Compliance Review
Committee comprising senior management has the overall responsibility to monitor and evaluate
compliance with these Policies. The responsibility for implementation of ITC’s CSR Policy rests with
the Corporate Social Investments Programme (SIP) Team.
b. Has the Policy been Approved Yes Yes Yes Yes Yes Yes Yes Yes Yes
by the Board? (Yes/No)
c. Web Link of the Policies, https://www.itcportal.com/about-itc/policies/index.aspx
if available
2. Whether the Entity has Yes Yes Yes Yes Yes Yes Yes Yes Yes
Translated the Policy into
Procedures? (Yes/No)
3. Do the Enlisted Policies Yes Yes Yes Yes Yes Yes Not Yes Yes
extend to your Value Chain applicable
Partners? (Yes/No)
4. Name of the National Yes Yes Yes Yes Yes Yes Yes Yes Yes
and International Codes/
- Food Safety OHSAS ISAE SA 8000: Social ISO 14001: NGRBC - ATNI
Certifications/Labels/ Management 18001/ 3000 Accountability, Environment Framework,
Standards (e.g. Forest System (FSSC ISO 45001: United Nations Management ASCI, FSSAI,
22000/ISO Occupational Guiding System, ISO 9001,
Stewardship Council, 22000/HACCP) Health Principles on Alliance BRCGS and
Fairtrade, Rainforest Responsible and Safety Business and Packaging
for Water
Alliance, Trustea) Supply Chain Management Human Rights, Stewardship Materials
Certifications Systems Sustainable Global
Standards (e.g. SA 8000, like Rainforest (AWS), LEED
OHSAS, ISO, BIS) Adopted Alliance (RFA) Tobacco Certification Standard,
and Forest Programme, for Green HACCP, Sedex,
by your Entity and Mapped Stewardship RFA, FSC® Building, Zero NPOP, NOP,
to each Principle. Council® Carbon, Zero Halal and
(FSC®) Water Kosher
For more information on Environment, Social, Occupational Health and Safety, Food Safety Certifications and
Sustainable Farming Certifications, refer to ‘Certifications’ section of ITC Sustainability & Integrated Report 2023.
XII
5. Specific Commitments, Goals and In line with its Sustainability 2.0 agenda, ITC has set short to medium targets
Targets set by the Entity with defined for key priority areas like climate change, water stewardship, plastic waste
Timelines, if any. and circular economy, sustainable agriculture, biodiversity conservation and
sustainable livelihoods. In line with the above, ITC’s Businesses have targets for
6. Performance of the Entity against Key Performance Indicators (KPIs) like specific energy consumption, specific
the Specific Commitments, Goals and greenhouse gas emissions, specific water intake and specific waste generation.
Targets along with reasons in case In order to achieve these targets, all ITC Units have established management
the same are not met. systems which entail regular monitoring of environmental KPIs, development of
an environmental management plan, and reviewing progress on a regular basis to
ensure that Businesses are on track with respect to the agreed roadmap.
For more information on annual performance against the Sustainability 2.0
targets, refer to ‘Sustainability 2.0 Ambitions: 2030 Targets’ section of ITC
Sustainability & Integrated Report 2023.
Governance, Leadership and Oversight
7. Statement by Director Responsible for the Business Responsibility Report, Highlighting ESG Related
Challenges, Targets and Achievements (listed entity has flexibility regarding the placement of this disclosure)
Please refer to the ‘Chairman’s Statement’ section in ITC Sustainability & Integrated Report 2023.
8. Details of the Highest Authority The CSR and Sustainability Committee of the Board, chaired by the
Responsible for Implementation Chairman & Managing Director, reviews and oversees implementation of the
and Oversight of the Business Sustainability Policies of the Company on an annual basis. In addition, the
Responsibility Policy(ies). CSR and Sustainability Committee and the Board of Directors also review
the progress of implementation of the Company’s CSR Programmes on a
half-yearly basis. The composition of the CSR and Sustainability Committee
as on 31st March, 2023 is given below:
Sl. Name of the Designation/Nature DIN of the
No. Director of Directorship Director
1. S. Puri (Chairman of Chairman & Managing 00280529
the Committee) Director
2. P. R. Chittaranjan Non-Executive Director 09773278
3. M. Gupta Non-Executive Director 06638754
4. S. Panray Non-Executive Director 09251023
5. N. Rao Independent Director 06954879
6. A. K. Seth Independent Director 08504093
7. M. Shankar Independent Director 06374957
8. D. R. Simpson Non-Executive Director 07717430
At the highest level, the Board of Directors of the Company has the primary role of
trusteeship to protect and enhance shareholder value through strategic supervision
of ITC. As trustees, the Board ensures that the Company has clear goals aligned to
shareholder value and its growth, and also in line with its Sustainability agenda.
The Corporate Management Committee (CMC) of the Company is the management
body responsible for compliance with the Sustainability Policies of the Company.
The CMC has constituted the Sustainability Compliance Review Committee
(SCRC), which monitors and evaluates compliance with these Policies and places a
quarterly report thereon for review by the CMC. The Chief Executives of Divisions/
Strategic Business Units (SBUs), through members of the respective Management
Committees, and Heads of Corporate Functions, are responsible for ensuring
implementation of the Sustainability Policies of the Company within their respective
Division/SBU/Corporate Function, and communication of these Policies to the
employees.
In addition, the Chief Sustainability Officer (CSO) of the Company is, inter alia,
responsible for periodic review of material issues, scanning the external
environment for evolving sustainability trends and regulations, monitoring the
progress on sustainability targets and facilitating the Businesses & Corporate
Functions in implementing the sustainability initiatives. The CSO reports to the
Group Head of Sustainability who is also a CMC Member and the Chairman of the
SCRC. The CSO provides progress reportbacks on the Company’s sustainability
initiatives to the senior leadership of the Company.
XIII
9. Does the entity have Yes, as stated under (8) above, the CSR and Sustainability Committee of the Board, inter alia,
a specified Committee reviews, monitors and provides strategic direction to the Company’s CSR and sustainability
of the Board/Director practices towards fulfilling its Triple Bottom Line objectives. The Committee seeks to guide the
responsible for decision
Company in crafting unique models to support creation of sustainable livelihoods together with
making on sustainability
related issues? (Yes/No). environmental re-generation.
If yes, provide details. The CSR and Sustainability Committee of the Board also reviews the Business Responsibility and
Sustainability Report of the Company and recommends the same to the Board for adoption, and
approves the Sustainability & Integrated Report of the Company.
10. Details of Review of NGRBCs by the Company:

Indicate whether review was undertaken by Frequency (Annually/Half yearly/
Director/ Committee of the Board/Any other Quarterly/Any other – please specify)
Committee
P1 P2 P3 P4 P5 P6 P7 P8 P9
Performance Against Any other Any other Any other Any other Any other Any other Any other Any other Any other
Above Policies and Committee Committee Committee Committee Committee Committee Committee Committee Committee
Follow-up Action
On a On a On a On a On a On a On a On a On a
quarterly quarterly quarterly quarterly quarterly quarterly quarterly quarterly quarterly
basis basis basis basis basis basis basis basis basis
As stated under (8) above, the Sustainability Compliance Review Committee is responsible for
monitoring and evaluating compliance with the Sustainability Policies of the Company and placing
a quarterly report thereon for review by the CMC. The CSR and Sustainability Committee of the
Board also reviews implementation of these Policies on an annual basis.
The Chief Executives of Divisions/Strategic Business Units (SBU) and Heads of Corporate
Functions are responsible for ensuring implementation of the Sustainability Policies of the
Company within their respective Division/SBU/Corporate Function.
Compliance with Any other Any other Any other Any other Any other Any other Any other Any other Any other
Statutory Requirements Committee Committee Committee Committee Committee Committee Committee Committee Committee
of Relevance to the
Principles, and, On a On a On a On a On a On a On a On a On a
Rectification of any quarterly quarterly quarterly quarterly quarterly quarterly quarterly quarterly quarterly
Non-compliances basis basis basis basis basis basis basis basis basis
The Company is in compliance with applicable laws and regulations.
11. Has the Entity • ITC has been obtaining independent third-party assurance for its Sustainability Reports since
Carried out Independent 2004, in the reporting year, authenticity of the data and systems disclosed in the Sustainability
Assessment/Evaluation & Integrated Report 2023 has been assured by an independent third-party assurance
of the Working of its
provider; the assurance has been provided as per the International Standard for Assurance
Policies by an External
Agency? (Yes/No). If Engagements (ISAE) 3000 at the ‘Reasonable Assurance’ level
yes, provide name of the • ITC has computed its Green House Gas (GHG) inventory, including GHG emissions, biogenic
agency.
emissions and GHG removals, in accordance with ISO 14064:2018; the GHG inventory of
FY 2022-23 has been verified at the ‘Reasonable Assurance’ level by an independent third-party
assurance provider
• In addition to the above, relevant third-party assessments and certifications are conducted
across Business Units periodically
XIV
Section C: Principle-wise Performance Disclosure
Principle 1
Businesses should conduct and govern themselves with integrity, and in a manner that is Ethical, Transparent and
Accountable.
Essential Indicator
1. Percentage coverage by training and awareness programmes on any of the principles during the financial year
Segment Total Number Topics/Principles covered under the %age of Persons in
of Training and Training and its Impact Respective Category
Awareness covered by the
Programmes Held Awareness Programmes
Board of 8 • The Directors of the Company are briefed on the
Directors sustainability initiatives of the Company from time
to time. The Directors are also updated on changes/
Key developments in the domestic/global corporate
Managerial and industry scenario including those pertaining to
Personnel statutes/legislation & economic environment and on
(other than matters affecting the Company, to enable them to take
Directors) well informed and timely decisions
• During the financial year 2022-23, the Directors and KMP
of the Company were briefed/updated on the following:
a) Business Plan of the Company for the ensuing years.
b) CSR initiatives of the Company.
c) Diversity and Inclusion at ITC.
d) E-Commerce and New Routes to Market.
e) Talent Retention and Engagement at ITC.
f) Update on IT Business.
g) Field visit to Sehore, Madhya Pradesh, to
experience the ITC-MAARS Project and other social
investment projects.
• In addition to the above, the Directors of the Company
attended a ‘Strategy Session’ where the Company’s
overall strategy, including ITC Sustainability 2.0 vision
and goals, were discussed/reviewed
Employees 11 (types of Health and Safety,** ITC Code of Conduct, Policy on
other than training) Prevention of Sexual Harassment at the workplace,
100%*
BoD and and Wellness programmes
KMPs
Workers 11 (types of Health and Safety,** ITC Code of Conduct, Policy on 100%*
training) Prevention of Sexual Harassment at the workplace,
and Wellness programmes
*Note: All Employees/Workers are covered under at least one of the topics
**Detailed training programmes on various health and safety sub-elements are also provided
2. Details of Fines/Penalties/Punishment/Award/Compounding fees/Settlement Amount Paid in Proceedings (by
the Entity or by Directors/KMPs) with Regulators/Law Enforcement Agencies/Judicial Institutions, in the Financial
Year, in the following format (Note: The Entity shall make disclosures on the basis of materiality as specified in
Regulation 30 of SEBI (Listing Obligations and Disclosure Obligations) Regulations, 2015 and as disclosed on the
entity’s website):
Monetary
NGRBC Name of the Regulatory/ Amount Brief of the Has an Appeal been
Principle Enforcement Agencies/ (In INR) Case preferred?
Judicial Institutions (Yes/No)
Penalty/Fine
Settlement Nil
Compounding Fee
XV
Non-Monetary
NGRBC Name of the Regulatory/Enforcement Brief of the Has an Appeal
Principle Agencies/Judicial Institutions Case been preferred?
(Yes/No)
Imprisonment
Nil
Punishment
3. Of the Instances Disclosed in Question 2 above, details of the Appeal/Revision preferred in cases where
Monetary or Non-Monetary action has been appealed.
Case Details Name of the Regulatory/Enforcement agencies/Judicial Institutions
Not applicable Not applicable
4. Does the Entity have an Anti-corruption or Anti-bribery Policy? If yes, Provide details in brief and if available,
Provide a web-link to the policy.
The Company’s Code of Conduct covers aspects relating to anti-corruption and anti-bribery. In terms of the
said Code, the Company believes in conducting its business in a transparent manner and does not indulge in
bribery or corruption.The ITC Code of Conduct can be accessed on the Company’s corporate website at
https://www.itcportal.com/about-itc/values/index.aspx#sectionb5
Further, in terms of the Company’s Code of Conduct for Suppliers and Service Providers, all Suppliers and Service
Providers of the Company are required to avoid any actual or potential conflicts of interest in their business dealings
with the Company that could create a perception of unfairness or lead to uncompetitive favours, and are also required
to disclose any such situation of conflict of interest, including involvement or interest of any employee of the Company
or his/her immediate family members in their business. The said Code can be accessed on the Company’s corporate
website at https://www.itcportal.com/about-itc/policies/sustainability-policy.aspx#coc-vendor
5. Number of Directors/KMPs/Employees/Workers against whom disciplinary action was taken by any Law
Enforcement Agency for the charges of Bribery/Corruption:
FY 2022-23 FY 2021-22
Directors Nil Nil
KMPs Nil Nil

Employees Nil Nil
Workers Nil Nil
6. Details of Complaints with regard to Conflict of Interest:

FY 2022-23 FY 2021-22
Number Remarks Number Remarks
Number of complaints received in Nil - Nil -
relation to issues of conflict of interest of
the Directors
Number of complaints received in Nil - Nil -
relation to issues of conflict of interest of
the KMPs
7. Provide details of any Corrective Action taken or underway on issues related to Fines/Penalties/Action taken by
Regulators/Law Enforcement Agencies/Judicial Institutions, on cases of Corruption and Conflicts of Interest.
Not Applicable
Leadership Indicators
1. Awareness Programmes conducted for Value Chain Partners on any of the Principles during the Financial Year:
ITC facilitates capacity building workshops for its key value chain partners to educate, and create shared awareness on
key areas like human rights, labour practices and sustainability. All ITC businesses have identified Critical Tier-1 Suppliers
based on aspects like buy value, ESG risk exposure, importance to business continuity, among others. ITC’s Sustainable
Supply Chain Programme is focussed on working closely with the aforesaid set of identified Critical Suppliers.
XVI
Total Number of Awareness Topics/Principles covered %age of Value Chain Partners covered
Programmes held under the Training (by Value of Business done with such Partners)
under the Awareness Programmes
4 • Environmental Compliance • 60% of the identified Critical Tier-1 suppliers
• Fair Business Practices
• Corporate Governance and Ethics
• Occupational Health and Safety
• Fair Labour Practices and Human
Rights
2. Does the Entity have Processes in place to avoid/ transaction, or (b) an employee is in a position to benefit
manage Conflict of Interests involving Members of the someone with whom he/she has a close relationship, in
Board? (Yes/No) If Yes, provide details of the same. relation to the Company’s business. However, this is an
area in which it is impossible to provide comprehensive
Yes, the ITC Code of Conduct requires the Directors,
guidance but the guiding principle is that conflict, if any,
senior management and employees to avoid situations
or any potential conflict must be disclosed to higher
in which their personal interests could conflict with the
management for guidance and action as appropriate.
interests of the Company. The Code, inter alia, clarifies
that conflict of interest may arise when (a) an employee Further, the Directors of the Company are required to
or a family member (family member includes spouse, disclose to the Board, on an annual basis, whether they,
children, siblings and parents) has a material interest directly or indirectly or on behalf of third parties, have
in an entity that has a business relationship with the material interest in any transaction or matter directly
Company or is being evaluated for a commercial affecting the Company.
Principle 2
Businesses should provide Goods and Services in a manner that is Sustainable and Safe.
Essential Indicators Sustainable Packaging & Material Sciences: This
vertical works on reducing the impact of single-
1. Percentage of R&D and Capital Expenditure
use plastics and plastic packaging by focussing
(CapEx) Investments in Specific Technologies to
on suitable alternatives, improving recyclability of
improve the Environmental and Social Impacts of
multi-layered plastic packaging, and increasing the
Product and Processes to total R&D and CapEx
Investments made by the Entity, respectively. use of recycled content, thereby reducing the carbon
footprint of packaging.
The Company’s state-of-the-art ITC Life Sciences and
Technology Centre (LSTC) in Bengaluru is at the core of Health, Wellness and Nutrition: Health and
driving science-led product innovation to support and Wellness platform focuses on multiple aspects of
build ITC’s portfolio of world-class brands. human health stratified across age, gender, specific
health concerns as well as uniqueness of the Indian
ITC LSTC’s research and development initiatives are
equipped with world-class scientific platforms and consumer. LSTC, over the last decade, has been
centres of excellence that deliver improvements in instrumental in creating scientifically validated
environmental and social impacts, some of which are solutions catering to areas such as diabetes,
summarised below - cardiovascular health, weight management, gut
health, immunity, brain health, women’s health,
Agroforestry and Crop Sciences: Agroforestry, one
kids’ health, targeted nutrition as well as various
of LSTC’s key expertise, involves working on tree
improvement by using contemporary research tools for concerns associated with ageing. Solutions
Eucalyptus, Casuarina, Corymbia, and Subabul species. range from delivering benefits in various product
LSTC has released several new clones for all the four formats including nutraceuticals. Scientific due
species, aimed at improving productivity and catering to diligence as well as clinical efficacy has helped in
the sourcing needs of ITC’s paper business. Last year, generating health claims and in providing nutrition,
6 million new clones with improved productivity were nourishment, health and wellness to the Indian
distributed to farmers. consumer.
XVII
₹in crores agricultural productivity, strengthening regional water

FY 2022-23 FY 2021-22 security, and addressing the challenge of climate
change and enhancing resilience. ITC’s key agri value
Expenditure on 9.67 20.17
R&D – Capital chains are also certified as per global standards like
Rainforest Alliance (RFA), Forest Stewardship Council®,
Expenditure on 161.31 143.59
R&D – Revenue Fairtrade, India Organic, USDA Organic, Bio-Suisse etc.
These certifications specify environmental and social
Total R&D 170.98 163.76
Expenditure standards for agricultural practices, and help ensure
sustainability, traceability and transparency across
Capital Investment on 18.93 12.22
Energy Conservation value chains.
Equipment Note: For more details on ITC’s sustainable sourcing practices
2. a. Does the Entity have Procedures in place for pertaining to key agri value chains and key value chain partners
Sustainable Sourcing? like third-party manufacturers, refer to ‘Sustainable Agriculture’
and ‘Sustainable Supply Chain and Responsible Sourcing’ sections
Yes, there are procedures in place for sustainable
of ITC Sustainability & Integrated Report 2023.
sourcing. ITC has a Board approved Policy on
‘Sustainable Supply Chain and Responsible Sourcing’ b. If yes, what percentage of inputs were sourced
and a ‘Code of Conduct for Suppliers and Service sustainably?
Providers’. The Code reflects ITC’s commitment to ITC businesses, including Agri, FMCG and Paper
environmental conservation, business integrity and Businesses, depend on farm and forestry-based supply
human rights across the supply chain. It upholds the chains for key raw materials. Accordingly, farmers
spirit outlined in the International Labour Organisation constitute a vital part of ITC’s supply chain and the
Guidelines and United Nations Guiding Principles Company engages with farmers to ensure adoption of
on Business and Human Rights. All suppliers are sustainable agriculture practices. ITC’s key agri value
encouraged to fully comply with the Code. chains are also certified as per global standards like
Rainforest Alliance (RFA), Forest Stewardship Council®,
Additionally, ITC businesses, including Agri, FMCG and
Fairtrade, India Organic, USDA Organic and Bio-Suisse.
Paper Businesses, depend on farm and forestry-based
supply chains for key raw materials. Accordingly, focus Note: For more details on ITC’s sustainable sourcing practices
of ITC’s interventions in agri value chains has been pertaining to key agri value chains, refer to ‘Sustainable
largely around improving farmer livelihoods, increasing Agriculture’ section of ITC Sustainability & Integrated Report 2023.
3. Describe the Processes in place to Safely Reclaim your Products for Reusing, Recycling and Disposing at the
end of Life, for (a) Plastics (including Packaging) (b) E-waste (c) Hazardous Waste and (d) Other Waste.
Description of Processes
Plastics (including ITC achieved Plastic Neutrality in FY 2021-22 by implementing an integrated solid waste
Packaging) management programme that incorporates unique and multi-dimensional initiatives including the
Company’s flagship waste management initiative ‘ITC WOW – Well Being Out of Waste’. In FY 2022-23,
the Company collected and sustainably managed more than 60,000 tonnes of plastic waste across 36
States and Union Territories. The amount of plastic waste managed exceeded the amount of plastic
packaging utilised by ITC during the year, enabling the Company to maintain the milestone of Plastic
Neutrality.
ITC has been recycling more than 99% of the solid waste generated through its operations including
plastic waste for more than a decade.
E-waste Not applicable
Hazardous Waste Not applicable
Other Waste All ITC Units have established systems and procedures to ensure that waste is disposed through
authorised agencies in line with applicable regulations.
Note: For further details, refer to the ‘Towards Circularity’ section of ITC Sustainability & Integrated Report 2023.
XVIII
4. Whether Extended Producer Responsibility (EPR) (LCA) of its products and services in 2010 with an
is applicable to the entity’s activities (Yes/No). If objective to evaluate the impacts and identify areas
yes, whether the waste collection plan is in line with for improvement in the value chain. So far, LCAs have
the Extended Producer Responsibility (EPR) plan been carried out for key product categories from
submitted to Pollution Control Boards? If not, provide Paperboards & Specialty Papers Business, Personal
steps taken to address the same. Care Products Business, and Branded Packaged Foods
Businesses.
Yes, ITC is in compliance with the requirements of
Extended Producer Responsibility (EPR) under the In FY 2022-23, LCAs on Classmate Notebook, Savlon
Plastic Waste Management Rules, 2016 (as amended). Powder Handwash, Savlon Liquid Handwash and
Nimyle Floor Cleaner were initiated (details provided in
the table below). Additionally, during the year, capacity
1. Has the entity conducted Life Cycle Perspective/ building programmes were conducted for practitioners
Assessments (LCA) for any of its Products (for Manufacturing across ITC businesses in order to further strengthen
Industry) or for its Services (for Service Industry)? the application of LCA tools and methodologies for
The Company initiated Life Cycle Assessments sustainable product design.
NIC Code Name of % of total Boundary for which the Whether Results Communicated
Product/ Turnover Life Cycle Perspective/ conducted by in Public Domain
Service contributed Assessment was Independent (Yes/No)
conducted External Agency If yes, Provide the
(Yes/No) web-link.
46496 Classmate - Cradle-to-grave Yes No
Notebook
20237 Savlon Powder - Cradle-to-grave Yes No
Handwash
20237 Savlon Liquid - Cradle-to-grave Yes No
Handwash
20239/ Nimyle Floor - Cradle-to-gate Yes No
46491 Cleaner
2. If there are any significant Social or Environmental Concerns and/or risks arising from Production or Disposal of your
Products/Services, as identified in the Life Cycle Perspective/Assessments (LCA) or through any other means, briefly describe
the same along-with action taken to mitigate the same.
No significant social or environmental risks were identified from the LCA studies carried out.
3. Percentage of Recycled or Reused Input Material to Total Material (by Value) used in Production (for Manufacturing Industry)
or providing Services (for Service Industry).
During FY 2022-23, the Kovai Unit of ITC’s Paperboards & Specialty Papers Business sourced nearly 84,000 tonnes of
waste paper from external sources, which constituted over 73% of Unit’s total input materials. Additionally, some of
ITC’s Personal Care Products utilised recycled plastic in packaging during the year.
Indicate Input Material Recycled or Re-used Input Material to Total Material
FY 2022-23 FY 2021-22
Waste Paper used in Kovai Mill Recycled Paper used: 85,000 tonnes
~ 84,000 tonnes
Use of Recycled Plastic Content Savlon Glycerine Soap Wrapper with -

70% PCR (Post-consumer Recycled
Plastic) in PET layer.
Fiama Handwash Portfolio with 50%
PCR PET Bottles.
XIX
4. Of the Products and Packaging Reclaimed at End of Life of Products, amount (in Metric Tonnes) Reused,
Recycled, and Safely Disposed.
During FY 2022-23, the Company collected and sustainably managed more than 60,000 tonnes of plastic waste across 36
States and Union Territories. The amount of plastic waste managed exceeded the amount of plastic packaging utilised
by ITC during the year, enabling the Company to sustain its plastic neutrality status for the second year in a row.
FY 2022-23 FY 2021-22
Re-used Recycled Safely Disposed Re-used Recycled Safely Disposed
Plastics (Including - Approx. Approx. - Approx. Approx.
Packaging) 27,500 tonnes 32,500 tonnes 5,400 tonnes 48,600 tonnes
E-waste NA* NA NA NA NA NA
Hazardous Waste NA NA NA NA NA NA
Other Waste NA NA NA NA NA NA
*NA: Not applicable
5. Reclaimed Products and their Packaging Materials (as Percentage of Products sold) for each Product Category.
Please refer responses to Question 3 and 4 above.
XX
Principle 3
Businesses should respect and promote the well-being of all employees, including those in their value chains.
Essential Indicators
1. a. Details of Measures for the Well-being of Employees:
% of Employees Covered by
Total Health Insurance Accident Maternity Paternity Day Care
(A) Insurance Benefits Benefits Facilities
Category
Number % (B/A) Number % (C/A) Number % Number % Number %
(B) (C) (D) (D/A) (E) (E/A) (F) (F/A)
Permanent Employees
Male 21,337 21,337 100% 21,337 100% - 0% 9,389 44% - -
Female 2,388 2,388 100% 2,388 100% 2,388 100% - - 2,388 100%
Total 23,725 23,725 100% 23,725 100% 2,388 100% 9,389 44% 2,388 100%
Other than Permanent Employees
Male 22,157 21,952 99% 22,072 100% - 0% - - - -
Female 3,942 3,921 99% 3,938 100% 3,939 100% - - 3,939* 100%
Total 26,099 25,873 99% 26,010 100% 3,939 100% - - 3,939 100%
*Note: Eligible employees
b. Details of Measures for the Well-being of Workers:
% of Workers Covered by
Total Health Accident Maternity Paternity Day Care
Category (A) Insurance Insurance Benefits Benefits Facilities
Number % Number % Number % Number % Number %
(B) (B/A) (C) (C/A) (D) (D/A) (E) (E/A) (F) (F/A)
Permanent Workers
Male 11,948 11,948 100% 11,948 100% - 0% - - - 0%
Female 654 654 100% 654 100% 654 100% - - 654 100%
Total 12,602 12,602 100% 12,602 100% 654 100% - - 654 100%
Other than Permanent Workers
Male 22,061 21,886 99% 21,996 100% - 0% - - - 0%
Female 3,926 3,912 100% 3,926 100% 3,926 100% - - 3,926 100%
Total 25,987 25,798 99% 25,922 100% 3,926 100% - - 3,926 100%
2. Details of Retirement Benefits, for Current FY and Previous Financial Year.
FY 2022-23 FY 2021-22
No. of No. of Deducted and No. of No. of Deducted and
Employees Workers Deposited Employees Workers Deposited with the
Benefits Covered as Covered as with the Covered as Covered as Authority (Y/N/N.A.)
a % of Total a % of Total Authority a % of Total a % of Total
Employees Workers (Y/N/N.A.) Employees Workers
PF 100% 100% Y 100% 100% Y
Gratuity 100% 100%* Y 100% 100% Y
ESI 12%* 20%* Y 11% 19% Y
*Note: Covers all eligible employees
3. Accessibility of Workplaces premises have infrastructure that include the following
Are the premises/offices of the entity accessible to features:
differently abled employees and workers, as per the • Elevators enabled with Braille signages for persons
requirements of the Rights of Persons with Disabilities with visual difficulty
Act, 2016? If not, whether any steps are being taken by • Ramps, tactile pavers and handrails to facilitate
the entity in this regard.
movement of persons with motor disability
As part of its commitment to enhancing diversity, ITC
• Accessible parking places
places particular emphasis on representation and
inclusion of differently abled persons. Some of our • Accessible washrooms
XXI
4. Does the Entity have an Equal Opportunity Policy as per the Rights of Persons with Disabilities Act, 2016? If so,
provide a web-link to the policy.
Yes, the Company has a Policy on Diversity, Equity and Inclusion which clearly articulates its emphasis on Equal
Opportunity.
The said Policy clearly states ITC’s commitment towards providing equal opportunity. It also emphasises the
Company’s Zero Tolerance Policy on discrimination, inter alia, on the grounds of disability.
The aforesaid Policy can be accessed at https://www.itcportal.com/about-itc/policies/sustainability-
policy.aspx#EqualOpportunity
5. Return to Work and Retention Rates of Permanent Employees and Workers that took Parental Leave.
Permanent Employees Permanent Workers
Gender Return to Work Retention Rate Return to Work Retention Rate
Male 100% 100% - -
Female 100% 85% 100% 93%
Total 100% 86% 100% 93%
6. Is there a Mechanism available to Receive and Redress Grievances for the following Categories of Employees
and Worker? If yes, give details of the mechanism in brief.
Yes/No
(If Yes, then give details of the mechanism in brief)
Permanent Yes, ITC’s Grievance Redressal Procedure is available to employees and workers. The objective of
Workers the policy is to facilitate open and structured discussion on employees’ work-related grievances
with the intent of ensuring that the grievance is dealt with in a fair and just manner whilst being
in compliance with the Company’s policies. ITC’s open-door practices encourage an amicable
and fair resolution of grievances. Employees are encouraged to first discuss the grievance with
their immediate reporting authority, and attempt to arrive at a resolution before invoking a formal
grievance redressal mechanism.
In Unionised Units, grievances of workmen are also taken up for discussion by Union Office Bearers
and resolved through dialogue with human resources managers and other designated managers.
Units also have Committees with joint representation of workers and managers, which address
grievances raised by one or more workers. In addition, many Units have forums where workers
interact with the unit leadership team in small groups and share any suggestions or grievances they
may have, for resolution.
The Company’s Whistleblower Policy is also applicable to all permanent employees.
Other than The Company also has a Whistleblower Policy which encourages all employees to bring to the
Permanent Company’s attention, instances of illegal or unethical conduct, actual or suspected incidents of fraud,
Workers actions that affect the financial integrity of the Company, or actual or suspected instances of leak
of unpublished price sensitive information that could adversely impact the Company’s operations,
business performance and/or reputation. In terms of the said Policy, the Company investigates such
incidents, when reported, in an impartial manner and takes appropriate action to ensure that the
requisite standards of professional and ethical conduct are always upheld. This Policy can be accessed
on the Company’s corporate website at https://www.itcportal.com/whistleblower-policy
Permanent Same as stated for Permanent Workers.

Employees
Other than Same as stated for Other than Permanent Workers.

Permanent
Employees
XXII
7. Membership of Employees and Workers in Association(s) or Unions recognised by the listed entity:
FY 2022-23 FY 2021-22
Total No. of Employees/ % Total Employees/ No. of Employees/ %
Employees/ Workers in Respective (B/A) Workers in Respec- Workers in Respective (D/C)
Category
Workers in Category, who are part tive Category (C) Category, who are part
Respective of Association(s) or of Association(s) or
Category (A) Union (B) Union (D)
Total 23,725 10,222 43% 23,829 10,670 45%
Permanent
Employees
- Male 21,337 10,113 47% 21,568 10,550 49%
- Female 2,388 109 5% 2,261 120 5%
Total 12,602 10,222 81% 12,734 10,670 84%
Permanent
Workers
- Male 11,948 10,113 85% 12,102 10,550 87%
- Female 654 109 17%* 632 120 19%
*A vast majority of the women workers are based in manufacturing Units which currently do not have union representation.
These are Units that were commissioned in the recent past.
ITC believes that all employees are important stakeholders in the enterprise, and it is imperative to build a culture
of mutual trust and respect, interdependence, and meaningful engagement. This approach helps in building,
strengthening and sustaining harmonious employee relations across the organisation. It is ITC’s policy:
• To respect the dignity of the individual and the freedom of employees to lawfully organise themselves into interest
groups, independent of supervision by the management
• To ensure that employees are not discriminated against for exercising this freedom in a lawful manner and
consistent with ITC’s core values
8. Details of training given to employees and workers:
FY 2022-23 FY 2021-22
Total (A) On Health and On Skill Total (D) On Health and On Skill
Category
Safety Measures Upgradation Safety Measures Upgradation
No. % No. % No. % No.(F) %
(B) (B/A) (C) (C/A) (E) (E/D) (F/D)
Employees
Male 21,337 9,914 46% 6,464 30% 21,568 7,019 33% 4,199 19%
Female 2,388 877 37% 832 35% 2,261 586 26% 273 12%
Total 23,725 10,791 45% 7,296 31% 23,829 7,605 32% 4,472 19%
Workers
Male 11,948 6,832 57% 4,052 34% 12,102 5,188 43% 2,731 21%
Female 654 524 80% 150 23% 632 414 66% 0 0%
Total 12,602 7,356 58% 4,202 33% 12,734 5,602 44% 2,731 21%
Note: The above includes formal Induction training on joining and refresher trainings (Once in 3 years). Other forms of EHS
trainings on the job, like safety briefings, tool box talks, drills etc. which would have covered most of the employees and
workers have not been included.
9. Details of Performance and Career Development Reviews of Employees and Workers.
FY 2022-23 FY 2021-22
Category Current Financial Year Previous Financial Year
Total (A) No. (B) % (B/A) Total (C) No. (D) % (D/C)
Employees
Male 21,337 17,560 82% 21,568 16,418 76%
Female 2,388 2,283 96% 2,261 2,051 91%
Total 23,725 19,843 84% 23,829 18,469 78%
Workers
Male 11,948 8,171 68% 12,102 6,952 57%
Female 654 549 84% 632 422 67%
Total 12,602 8,720 69% 12,734 7,374 58%
XXIII
10. Health and Safety Management System: Necessary training is given to all employees in
recognising hazards and issues. Joint inspections by
a. Whether an Occupational Health and Safety
management representatives and employees on the
Management System has been implemented by the
shop floor are also carried out at regular intervals,
Entity? (Yes/No). If yes, the coverage of such system?
and respective corrective and preventive measures are
Yes, ITC has implemented an occupational health undertaken to mitigate the identified risks. In order to
and safety management system in all its Factories, create an open and transparent safety culture across
Hotels, Offices and Warehouses. ITC endeavours ITC Units, employees are encouraged to participate and
that Environment, Health & Safety (EHS) standards discuss safety related issues in forums like periodic EHS
at all its Units are ahead of applicable legislation Committee meetings and Departmental Open Forums.
and regulations, Standards and Codes, and are
benchmarked against international best practices d. Do the Employees/Worker of the Entity have access
across sectors in which it operates. ITC’s approach to to Non-occupational Medical and Healthcare Services?
occupational health & safety standards is articulated (Yes/No)
in the Board approved Environment, Health and Safety Yes, permanent employees and their family members
Policy. It is based on an EHS management system that have access to the Company provided or Company
emphasises on enhancing EHS performance by setting supported medical benefits. Workers have access to
objectives and targets and continually monitoring key medical benefits through Company provided group
performance indicators. insurance policies, Company funded medical support
Further, it promotes a culture of safety through behaviour and where applicable, statutory benefits under the
change programmes and by providing appropriate training Employees’ State Insurance Act.
to employees as well as service providers’ employees, 11. Details of Safety Related Incidents.
while continually investing in state-of-the-art technology
and in developing human capital. ITC reports its safety performance on two fronts – ‘on-
site’ — referring to the place of work i.e. Factory, Hotel,
EHS requirements are integrated at the design Office, etc. which is under direct operational control of
stage for all new investments. Compliance with EHS ITC and ‘off-site’ - defined as places other than on-
standards during the construction phase is ensured by site while on official duty, which includes to and fro
implementing project EHS management systems. In commute between residence and place of work. In
the operation phase of ITC Units, Hotels, Warehouses FY 2022-23, the total on-site Lost Time Accidents (LTAs)
and Offices, it is ensured through established EHS was 12 as compared to 11 in FY 2021-22. For details
management systems with designated roles and on ’off-site’ LTAs, please refer to ITC Sustainability &
responsibilities for competent resources. Integrated Report 2023.
b. What are the Processes used to identify Work- Detailed investigations are carried out for all accidents
Related Hazards and Assess Risks on a Routine and to identify the root causes and to understand the
Non-routine basis by the Entity? measures to prevent recurrence. The learnings from
ITC has identified the EHS Risk Management framework all accidents are disseminated across the organisation,
as one of the integral steps towards building a robust and a formal compliance is also obtained.
safety management system in all its Factories, Hotels, Safety Incident/ Category FY FY
Offices and Warehouses. This framework entails a set of
Number 2022-23 2021-22
processes for continual risk identification, assessment
and mitigation, with active participation of the Lost Time Injury Employees 0.07 0.09
workforce in each of its facilities. Shop floor processes Frequency Rate Workers 0.12
in this regard include hazard spotting tours, suggestion (LTIFR) (per one
schemes, daily briefings and periodic EHS committee
meetings in which employees participate. In addition, million-person
all ITC Units undergo periodic Environment, Health & hours worked)*
Safety audits at the Business as well as Corporate level Total recordable Employees 4 11
which endeavours to identify additional latent risks
work-related injuries* Workers 8
besides verifying compliance with standards. Several
national awards and certifications acknowledge ITC’s No. of fatalities* Employees 0 2
commitment and efforts towards providing a safe and Workers 1
healthy workplace to all.
High consequence Employees 0 9
c. Whether you have processes for workers to report work-related injury
the work-related hazards and to remove themselves
or ill-health (ex- Workers 1
from such risks. (Y/N)
cluding fatalities)*
Yes. A system is in place across ITC Factories, Hotels
and Offices for workers to spot and report work-related *Employees mean workforce who are under the payroll of ITC
Limited and workers means the workforce who are employees
hazards, and offer suggestions for improvements. of service providers (Trainees/Apprentices not included).
XXIV
12. Describe the measures taken by the entity to • Integrating safety at the design stage itself and
ensure a safe and healthy work place. ensuring it through design reviews, stage inspections
and pre-commissioning audits, thereby strengthening
In line with the Company’s Environment, Health and
the engineering control measures through ‘design for
Safety Policy, safety as a value-led concept has been
safety’ principles
institutionalised by inculcating a sense of ownership at
all levels and driving behavioural change, leading to the • Conducting pre-commissioning and periodic
creation of a cohesive safety culture. ITC has put in place operational audits during construction and
operational stages respectively
comprehensive health and safety protocols for the safety
and well-being of its stakeholders. ITC endeavours that • Implementing behaviour-based safety initiatives
EHS standards at all its Units are ahead of applicable to facilitate engagement for collaborative work on
legislations, regulations, and Standards and Codes, and improving safety performances
are benchmarked against international best practices • Adoption of keystone behaviours by individual Units
across the diverse sectors in which it operates. to demonstrate collective commitment and create a
ITC continues to strengthen its safety processes, shared vision of safety and discipline
adopting globally recognised best practices, and • Embracing and leveraging the digital landscape for
ensuring that facilities are designed, constructed, safety management system
operated and maintained in an inherently safe manner.
ITC continues to identify solutions for strengthening
ITC continues to undertake efforts for creating a safe the safety culture aligned with the goal of ‘Zero
working environment and a strong safety culture by: Accidents’.
13. Number of Complaints on the following made by Employees and Workers.

Employees are encouraged to report work area related safety issues through various programmes like hazard
identification processes, suggestion schemes and EHS Committees.
FY 2022-23 FY 2021-22
Filed during Pending Remarks Filed during Pending Remarks
the Year Resolution the Year Resolution
at the end of at the end of
Year Year
Working 134 8 212 6
Conditions (resolved after
31st March
2022)
Health & 7 0 0 0
Safety
14. Assessments for the Year:
Most of ITC’s manufacturing locations are covered under the OHSAS 18001/ISO 45001: Occupational Health and
Safety Management Systems. Compliance to safe working conditions is an essential aspect of EHS management
systems. In addition, all ITC Units undergo periodic Environment, Health & Safety audits at the Business/Division level
as well as at Corporate level, to verify compliance with Standards and Corporate Guidelines.
% of your Plants and Offices that were assessed (by
Entity or Statutory Authorities or Third Parties)
Health and Safety Practices 100%
Working Conditions 100%
15. Provide details of any corrective action taken or underway to address safety-related incidents (if any) and on
significant risks/concerns arising from assessments of health & safety practices and working conditions.
Internal audits of ITC Units at Divisional as well as Corporate level are being conducted on a periodic basis. Corrective
and preventive measures are taken based on the findings. Detailed investigations are carried out for all accidents
to identify the root causes and to understand the measures required to prevent recurrence. Accident investigation
findings with corrective and preventive measures form part of the report presented to the Corporate Management
Committee (monthly) and the Board (quarterly). The learnings from all accidents are disseminated across the
organisation at periodic intervals and a formal compliance obtained.
XXV
1. Does the Entity extend any Life Insurance or any Compensatory Package in the Event of Death of (A) Employees
(Y/N) (B) Workers (Y/N).
Yes. In the unfortunate event of the death of an employee including workers, the Company extends financial support
to family members of the employee.
2. Provide the Measures undertaken by the Entity to ensure that Statutory Dues have been Deducted and Deposited
by the Value Chain Partners.
The Company ensures that statutory dues as payable by service providers for their employees are deposited on time
and in full through periodic audits and controls.
3. Provide the number of employees/workers having suffered high consequence work-related injury/ill-health/
fatalities (as reported in Q11 of Essential Indicators above), have been rehabilitated and placed in suitable
employment or whose family members have been placed in suitable employment.
Total no. of affected No. of Employees/Workers that are
Employees/Workers* rehabilitated and placed in suitable
employment or whose family members have
been placed in suitable employment*
FY 2022-23 FY 2021-22 FY 2022-23 FY 2021-22
Employees 0 5 0 5
Workers 2 3 1 3
*Onsite Accidents
4. Does the Entity provide Transition Assistance Programmes to Facilitate Continued Employability and the
Management of Career Endings Resulting from Retirement or Termination of Employment? (Yes/No)
ITC continually invests in human capital development which includes building skills and capabilities that are
contemporary while providing employees with a diversity of experiences. These enhance the employability of the
workforce and enable a smooth transition to alternate opportunities where sought. The Company has in place a
programme called ‘Making New Choices’ for retiring staff. In addition, the Company provides pension benefits and
post-retiral medical benefits for those members of staff who qualify. Workers are provided with pension benefits
covered under the relevant statute.
5. Details on Assessment of Value Chain Partners on Health and Safety Practices and Working Conditions.
ITC reserves the right to verify compliance with the Code of Conduct for Suppliers and Service Providers at any time
through appropriate audit and assessment mechanisms, including self-certification.
Health and safety audits conducted at ITC’s own manufacturing sites cover all contract workers within ITC’s
operational premises.
Additionally, ITC has initiated a third-party desktop assessment of its Critical Tier 1* suppliers which includes key
aspects on Occupational Health and Safety, amongst other assessment criteria.
*All ITC businesses have identified Critical Tier-1 suppliers based on buy value, ESG risk exposure, importance to business
continuity, among others. ITC’s Sustainable Supply Chain Programme is focussed on working closely with the set of
identified critical suppliers.
% of Value Chain Partners (by Value of business done with such Partners) that were Assessed
Contract Workers within ITC Premises Other Suppliers/Vendors
(Manpower Service Providers)
Health and
Safety Practices Third Party Desktop Assessment of
100%
Working Critical Suppliers
Conditions
6. Provide details of any Corrective Actions taken or underway to address Significant Risks/Concerns arising from
Assessments of Health and Safety Practices and Working Conditions of Value Chain Partners.
ITC’s Sectoral EHS Guidelines are shared by Businesses with their value chain partners, and periodic training is given
to their concerned personnel.
Periodic audits by ITC are conducted for some of its key value chain partners against the sectoral EHS guidelines.
Corrective and preventive measures are recommended based on the audit findings.
XXVI
Principle 4
Businesses should respect the interests of and be responsive to all its stakeholders
1. Describe the Processes for Identifying Key Stakeholder Groups of the Entity.
In line with the Board approved Policy on Stakeholder Engagement, ITC has evolved a structured framework for
engaging with its stakeholders and fostering enduring relationships with each one of them. ITC’s engagement
approach is anchored on the principles of materiality, completeness and responsiveness.
The engagement approach takes into cognisance the fact that each stakeholder group is unique and has a distinctive
set of priorities. Insights gathered from stakeholder engagements, help validate the Company’s performance and
shape new perspectives.
For details on ITC’s Process of Stakeholder Engagement, refer to ‘Stakeholder Engagement’ section of ITC Sustainability & Integrated
Report 2023.
2. List Stakeholder Groups Identified as Key for your Entity and the Frequency of Engagement with each
Stakeholder Group.
The Board approved Policy on Stakeholder Engagement provides the approach for identifying and engaging with
stakeholders that include shareholders, consumers, farmers, employees, local communities, suppliers, Central and
State Governments, regulatory bodies and the media.
Stakeholder Group Whether Channels of Communication Frequency of Purpose and Scope

identified as (Email, SMS, Newspaper, Engagement of Engagement
Vulnerable & Pamphlets, Advertisement, (Annually/Half- including Key Topics
Marginalized Community Meetings, yearly/Quarterly/ and Concerns
Group (Yes/No) Notice Board, Website), others – please raised during such
Other specify) Engagement
Providers of No For more details on consultation mechanisms and key issues discussed with the
Financial Capital stakeholder groups, refer to ‘Strengthening Relationships with All Stakeholders’
section of ITC Sustainability & Integrated Report 2023.
Government and No
Regulatory Authorities
Customers No
Employees No
Farmers Yes
Value Chain Partners No
Media No
Civil Society No
Local Communities Yes
Leadership Indicators laid down a four layered mechanism to deal with the
aspect of stakeholder engagement.
1. Provide the Processes for Consultation between The Board, through the CSR and Sustainability
Stakeholders and the Board on Economic, Committee, inter alia, reviews, monitors and provides
Environmental, and Social Topics or if Consultation is strategic direction to the Company’s CSR and
delegated, how is feedback from such Consultations sustainability practices towards fulfilling its Triple
Bottom Line objectives. Half-yearly reports on the
provided to the Board.
progress made by the Company in this regard are
ITC believes that an effective stakeholder engagement placed by the CMC before the CSR and Sustainability
process is necessary for achieving its sustainability goal Committee. The CMC in turn has constituted the
of inclusive growth. In this context, the Company has Sustainability Compliance Review Committee,
XXVII
comprising of senior members of management, which of the Company’s website is also being updated on an
evaluates and monitors compliance with the Policies ongoing basis. The Company is well-recognised for its
formulated in this connection. The SCRC places a ESG credentials, and is acknowledged as one of the
quarterly report on the subject before the CMC. pioneers of adopting the Triple Bottom Line philosophy
in India. Based on requests, the Company engaged on
2. Whether Stakeholder Consultation is used to
one-on-one basis with ESG specialists of fund houses/
Support the Identification and Management of
brokerages covering, inter alia, progress towards
Environmental, and Social Topics (Yes/No). If so,
achieving its ambitious Sustainability 2.0 goals by 2030.
provide details of instances as to how the inputs
These initiatives have been much appreciated by the
received from stakeholders on these topics were
investor ecosystem.
incorporated into policies and activities of the entity.
2. Customers & Value Chain Partners: Customers,
Yes, the Company believes that an effective stakeholder
Consumers and Value Chain Partners are some of ITC’s
engagement process is necessary for achieving its
core stakeholders. Various tech-enabled avenues have
sustainability goal of inclusive growth. Accordingly,
been deployed to constantly receive feedback and ideas
the Company anchors stakeholder engagement on the
from these stakeholders.
following principles:
A specialised team, ‘Team Synthesis’, has progressively
a) Materiality – Prioritised consideration of the
evolved from being a ‘Customer Interactions’ team to a
economic, environmental and social impacts
‘Customer Experience’ team to ‘Stakeholder Experience
identified to be important to the stakeholders as
Team’, and now into a ‘Stakeholder Experience
well as the organisation.
Management Team’. In its current avatar, in addition
b) Completeness – Understanding key concerns of to keeping customer centricity as the base, SOPs
stakeholders and their expectations. and policies are designed and implemented in such a
c) Responsiveness – Responding coherently and manner that the experience of all stakeholders is taken
transparently to such issues and concerns. into equitable consideration. This has not just helped
in achieving better experience for customers as well
The Company has put in place systems and procedures as the employees but has also made every stakeholder
to identify, prioritise and address the needs and accountable for the team’s and the organisation’s
concerns of its stakeholders across Businesses and growth. Rapidly evolving consumer needs are constantly
Units in a continuous, consistent and systematic being monitored through social listening, in-depth
manner. It has implemented mechanisms to facilitate immersions and are being carefully synthesised to
effective dialogues with all stakeholders across transform into relevant solutions. A few key initiatives
Businesses, identify material concerns and their that demonstrate the above are:
resolution in an equitable and transparent manner.
These measures have helped the Company develop • The entire customer experience process has been
strong relationships, which have stood the test of incentivised for the associates, team leaders as
time. Select examples of how stakeholder inputs have well as for the Quality Analysts (QAs) in such a
been incorporated into ITC’s policies and activities are manner that each month they accumulate points
presented below: for their monthly performance based on objective
parameters like ideation (KAIZEN) and initiatives
1. Investors: The Company engages extensively with taken beyond the assigned tasks to improve the
the investor ecosystem i.e. analysts representing process continuously; this provides an enabling
institutional equity investors, fund/portfolio managers environment for them to perform better
in top FIIs, Domestic Mutual Funds, FPIs, Private
Insurance Companies etc. During the year, more than • The scenarios related to matters like environment,
200 interactions including meetings, participation product, packaging, ergonomics, and quality
in physical and virtual conferences, calls, etc. were engineering, highlighted by customers are answered
undertaken with the investor ecosystem. The Company by respective brand teams, and any new or unique
continues to communicate quarterly performance scenario highlighted is shared with the respective
takeaways through press releases, followed by stakeholders as a VOC (Voice of Customer)
presentations and post-result calls with analysts. Key 3. Community: Some of the examples where inputs
highlights of the performance are also being shared received from stakeholders were incorporated into
with all shareholders by e-mail. The Investors section interventions are mentioned below.
XXVIII
Forming large-scale long-term partnerships with • Liquid Waste Management: Requirement for
Government to amplify reach and scale is one of liquid waste management emerged as one of the
the core tenets of Social Investment Programme’s priority areas of community during the Core Area
implementation approach. In this case, stakeholder Perspective Plan (CAPP) 2.0 exercise; during the
feedback received through consultations and year, ITC had entered into a partnership with the
interactions were appropriately incorporated during Department of Drinking Water and Sanitation,
renewal/extension of the partnership. During the Government of India, through India Sanitation
year, some Public-Private Partnerships (PPPs) with Coalition (ISC), FICCI; under the partnership, ITC
government ended and discussions were initiated on aims to create 36 Light House’s Gram Panchayats
what changes and additions need to be considered in various States, under which liquid waste
in the next phase of partnership. Two such examples management is one of the major components;
are shared below: these Panchayats are now being assisted to plan
• After completion of first phase of partnership solutions like soak pits, and stabilisation ponds, to
with NITI Aayog for Aspirational Districts address liquid waste problem in their areas
Programme, there were detailed deliberations • Mobile Medical Units (MMUs): Healthcare emerged
with NITI Aayog, District Administration and as another priority area for community during
Krishi Vigyan Kendras, based on which scope for CAPP 2.0 exercise; in order to ensure access and
the second phase of partnership was finalised; availability of curative and preventive healthcare to
it was decided that in this phase, the activities rural communities, ITC Swaasth Kiran programme
that were directly done by ITC in the first phase was initiated, wherein Mobile Medical Units were
now need to be internalised by the Government deployed in Saharanpur and Munger districts in
and ITC should focus primarily on taking up pilots collaboration with local Health Department; these
for new emerging areas that will set direction MMUs visit the villages and provide doorstep
for replication of those models; subsequently, consultation to the rural communities
an agreement was done for the second phase
• Linkages of Farmers to Social Security Schemes:
partnership incorporating the same covering
Farmers being one of the most vulnerable
27 Districts across 8 States
population are prone to social and climatic shocks;
• In Assam, ITC was working in the area of hence, building resilience amongst the farmer
Mother & Child Health and Nutrition in two community is of utmost importance, as it not
districts – Kamrup and Darrang and had only provides a cushion against such shocks, but
successfully demonstrated its approach; in also helps in improving risk taking appetite of
consultation with Department of Women and farmers; with this view, farmer beneficiaries under
Child Development, it was decided that there the Climate Smart Agriculture programme were
is a need to replicate the approach at a larger linked to six identified government schemes on the
scale; accordingly, an MoU was signed with basis of needs – PM Kisan, Crop Insurance, Soil
the Department during FY 2022-23 to cover 8 Health Card, Kisan Credit Card, Pension Scheme
Districts of the State including 7 Aspirational and institutional channels like e-NAM (National
Districts, wherein the Government will replicate Agriculture Market) for selling of produce; over
the approach with ITC’s knowledge support 9.5 lakh linkages with such schemes were enabled
3. Provide details of instances of Engagement with, during the year benefitting over 3.8 lakh farmers
and Actions taken to, address the Concerns of • Credit Linkage to Agri-business Centers (ABC):
Vulnerable/Marginalized Stakeholder Groups. Access to institutional credit emerged as one of the
ITC’s SIP adopts a bottoms-up approach to identify key needs of farmers in Andhra Pradesh as they
and address the emerging needs of the community. were otherwise struggling with high interest loans
Presented hereunder are few instances wherein from informal sources; to address the specific need,
changing community needs were addressed either banking institutions were mobilised and credit
through modifications in ongoing programme linkage of ABCs through banks was planned and
components or by introducing entirely new interventions. executed helping them in availing low interest loans
XXIX
Principle 5
Businesses should respect and promote human rights.
1. Employees and Workers who have been provided Training on Human Rights Issues and Policy(ies) of the Entity,
in the following format:
2022-23 2021-22
Total (A) No. of % (B/A) Total (C) No. of % (D/C)
Employees/ Employees/
Workers Workers
Covered (B) Covered (D)
Employees
Permanent 23,725 23,725 100% 23,829 23,829 100%
Other than Permanent 26,099 26,099 100% 25,513 25,513 100%
Total Employees 49,824 49,824 100% 49,342 49,342 100%
Workers
Permanent 12,602 12,602 100% 12,734 12,734 100%
Other than Permanent 25,987 25,987 100% 25,317 25,317 100%
Total Workers 38,589 38,589 100% 38,051 38,051 100%
2. Details of Minimum Wages paid to Employees and Workers, in the following format:
2022-23 2021-22
Total Equal to % More % Total Equal to % More %
(A) Minimum (B/A) than (C/A) (D) Minimum (E/D) than (F/D)
Category Wage No. Minimum Wage No. Minimum
(B) Wage No. (E) Wage No.
(C) (F)
Employees
Permanent 23,725 41 0.2% 23,684 99.83% 23,829 0 0% 23,829 100%

Male 21,337 40 0.2% 21,297 99.8% 21,568 0 0% 21,568 100%
Female 2,388 1 0% 2,387 100% 2,261 0 0% 2,261 100%
Other than 26,099 8,819 34% 17,280 66% 25,513 6,677 26% 18,836 74%
Permanent
Male 22,157 6,571 30% 15,586 70% 22,237 4,777 21% 17,460 79%
Female 3,942 2,248 57% 1,694 43% 3,276 1,900 58% 1,376 42%
Workers
Permanent 12,602 41 0.3% 12,561 100% 12,734 0 0% 12,734 100%

Male 11,948 40 0.3% 11,908 100% 12,102 0 0% 12,102 100%
Female 654 1 0.2% 653 100% 632 0 0% 632 100%
Other than 25,987 8,819 34% 17,168 66% 25,513 6,677 26% 18,640 73%
Permanent
Male 22,061 6,571 30% 15,490 70% 22,237 4,777 21% 17,291 78%
Female 3,926 2,248 57% 1,678 43% 3,276 1,900 58% 1,349 41%
XXX
3. Details of Remuneration/Salary/Wages, in the following format:

Male Female
Number Median Number Median
Remuneration/ Remuneration/
Salary/Wages of Salary/Wages of
Respective Category Respective Category
(in INR) (in INR)
Board of Directors (BoD) 14 99.45 lakhs 2 98.50 lakhs
Key Managerial Personnel* 5 844 lakhs - -
Employees other 21,332 7.2 lakhs 2,388 8.5 lakhs
than BoD and KMP
Workers# 11,948 5.0 lakhs 654 2.4 lakhs
* Comprising Chairman & Managing Director, Wholetime Directors and Company Secretary
#
Female workers are primarily in newer Units or have just commenced their careers.
4. Do you have a Focal Point (Individual/Committee) 5. Describe the Internal Mechanisms in place to
Responsible for Addressing Human Rights Impacts or Redress Grievances related to Human Rights Issues.
issues caused or contributed to by the Business?
ITC’s open door practices encourage amicable
(Yes/No).
resolution of grievances. Employees are encouraged
Yes. ITC has a long-standing commitment to human to first discuss the grievance with their immediate
rights and it is reflected in its Code of Conduct. The reporting authority and attempt to arrive at a resolution.
Company has policies on human rights which are If grievances persist, employee can fill up the Grievance
applicable to its employees, suppliers and service Redressal Form and submit to the concerned HR
providers. The said Policies and their implementation Manager.
are directed towards adherence to applicable laws and
The process of registering a grievance is by filling up
upholding the spirit of human rights, as enshrined in
a grievance form and submitting it to the concerned
existing international standards such as the Universal
HR Manager which is then evaluated and analysed
Declaration and the Fundamental Human Rights
and a resolution is arrived and communicated to the
Conventions of the International Labour Organisation
employee. The grievance redressal guidelines and
(ILO). The Company continues to work towards
necessary forms are available on the Company intranet
strengthening and introducing systems to ensure
where employees can access the same directly.
sound implementation of ITC’s policies on human
rights and decent work place. All ITC contracts for the The ITC Whistleblower Policy (the Policy) encourages
construction of hotels, factories and property upgrades Directors and employees of the Company to promptly
incorporate the environment, health, safety and human bring to the Company’s attention, instances of illegal
rights clauses, including workplace environment and or unethical conduct, actual or suspected incidents
compliance of labour practices and are supervised by of fraud, actions that affect the financial integrity of
ITC managers for adherence. the Company, or actual or suspected instances of
leak of unpublished price sensitive information, that
Human Rights related policies of the Company are
could adversely impact the Company’s operations,
available on the ITC Portal. These include ITC Code of
business performance and/or reputation. The Company
Conduct, Policy on Freedom of Association, Policy on
investigates such reported incidents in an impartial
Prohibition of Child Labour and Prevention of Forced
manner and takes appropriate action to ensure that the
Labour at the Workplace, and Policy on Diversity, Equity
requisite standards of professional and ethical conduct
& Inclusion. The implementation of these Policies is
are always upheld.
ensured by Divisional/SBU Chief Executives, through
members of the respective Management Committees of The Policy is available at https://www.itcportal.com/about-
the respective Businesses. itc/values/index.aspx#sectionb5
XXXI
6. Number of Complaints on the following made by Employees and Workers:

FY 2022-23 FY 2021-22
Filed during Pending Remarks Filed during Pending Remarks
the Year Resolution the Year Resolution
at the at the
end of Year end of Year
Sexual Harassment 1* 0 2 0
Discrimination at 0 0 0 0
workplace
Child Labour 0 0 0 0
Forced Labour/ 0 0 0 0
Involuntary Labour
Wages 2 0 0 0
Other Human 0 0 0 0
Rights Related Issues
*ITC has a zero-tolerance approach to any behaviour that constitutes sexual harassment. There are Internal Complaints Committees
to examine and investigate any complaints. In the past, where investigations have indicated any violations, appropriate disciplinary
actions have been taken, reinforcing the Company’s stated position and helping create an environment free of any harassment.
7. Mechanisms to Prevent Adverse Consequences to 9. Assessments for the Year:

the Complainant in Discrimination and Harassment % of your Plants and
Cases. Offices that were
Assessed (by Entity or
ITC is committed to a workplace free of harassment,
Statutory Authorities or
including sexual harassment at the workplace, and Third Parties)
has zero tolerance for such unacceptable conduct. ITC
Child Labour 100%
encourages reporting of any harassment concerns
Forced/Involuntary Labour 100%
and is responsive to complaints about harassment or
Sexual Harassment 100%
other unwelcome or offensive conduct. As part of the
policy, the complainant will not suffer any harassment, Discrimination at 100%
Workplace
retaliation or adverse employment condition upon this
reporting. The policy is made aware to all employees Wages 100%
through regular training and awareness on the Others-please specify
subject and confidentiality clauses are clearly stated. *The Company has Policies on Human Rights which are
Committees have been constituted across locations to applicable to all its employees and value chain partners. The
said Policies and their implementation are directed towards
enquire into complaints of sexual harassment and to adherence to applicable laws and upholding the spirit of human
recommend appropriate action, wherever required. rights, as enshrined in existing international standards such as
the Universal Declaration and the Fundamental Human Rights
8. Do Human Rights Requirements form part of your Conventions of the International Labour Organisation (ILO).
Business Agreements and Contracts? (Yes/No) 10. Provide details of any Corrective Actions taken
Yes, contract manufacturing agreements provide or underway to Address Significant Risks/Concerns
for compliance with accepted standards on issues Arising from the Assessments at Question 9 above.
related to EHS, human rights and labour practices. Please refer to response to Question 9 of Principle
Additionally, ITC has a ‘Code of Conduct for Suppliers 5 under essential indicators.
and Service Providers’. This requires suppliers to
comply with applicable laws, labour standards,
environmental regulations, and uphold human 1. Details of a Business Process being Modified/
rights and principles of ethics and integrity in their Introduced as a Result of Addressing Human Rights
operations. All Suppliers are expected to meet the Grievances/Complaints.
requirements of this Code. ITC also expects its The ITC Code of Conduct, as adopted by the Board,
Suppliers to hold their business associates to the is applicable to Directors, senior management and
same standards as enshrined in this Code. employees of the Company. The Code covers ITC’s
XXXII
commitment to human rights aspects like self-respect 4. Details on Assessment of Value Chain Partners for
and human dignity, child labour, gender friendly Human Rights.
workplace, ethical dealings with suppliers and customers,
health & safety, environment, transparency, anti-bribery Contracts with the service providers include clauses
and corruption, and exemplary personal conduct. conforming to ITC’s Human Rights Policies and EHS
guidelines. ITC reserves the right to verify compliance
ITC constantly engages with the rightsholders and with the Code of Conduct for Suppliers and Service
stakeholders across the supply chain for devising
Providers at any time through appropriate audit and
programmes that support Human Rights and Social
assessment mechanisms, including self-certification.
Development in an integrated manner. An illustrative
example for ITC’s leaf tobacco value chain is presented ITC periodically coordinates third party Human Rights
below. impact assessment for the entire tobacco farm supply
ITC coordinates Human Rights impact assessment with chain. Additionally, ITC has initiated a third-party
an independent party for its farm value chains. The desktop assessment of its Critical Tier 1* suppliers
Human Rights Due Diligence focusses on identifying which includes key aspects on Human Rights, including
human rights risks and impacts covering farmers, sexual harassment, discrimination at workplace, child
labourers and communities. labour, forced labour, wages, among others.
Some of the actions undertaken as an outcome of the *All ITC businesses have identified Critical Tier-1 suppliers
assessment are: based on buy value, ESG risk exposure, importance to
business continuity, among others. ITC’s Sustainable
Training and Awareness on Human Rights: 350 Village Supply Chain Programme is focussed on working closely
level training programmes were conducted covering with the set of identified Critical Suppliers.
subjects such as Farm Safety, Child Labour, Wages, Fair For more details, refer to response to Question 1
Treatment, Freedom of Association, Water, Sanitation (Principle 5) under leadership indicators.
and Hygiene (WASH), No Discrimination and other areas
pertaining to Human Rights. % of Value Chain Partners (by Value
of Business done with such
Human Rights Manual in Vernacular Language: Partners) that were Assessed
Released the industry first Human Rights Do’s and
Don’ts in farm supply chain. The manual assists as a
Contract Third-party
Workers within Manufacturers
ready reckoner for ITC employees working in farm, the
ITC Premises
farmers with whom ITC partners and the labourers
(Manpower Service
engaged by the farmers.
Providers)
Farm Safety: Close to 1,000 farmers have been provided Sexual
with Personal Protective Equipment (PPE) kits for safe Harassment
spraying of chemicals and Secured Storage Box for safe
storage of chemicals were provided to 2,000 farmers. Discrimination
Drone Technology was scaled up covering 5,535 at Workplace
acres minimising human interference while chemical Child Labour
spraying besides increasing the efficacy of operation Forced
and water saving. 100% 100%
Labour/
For more information, refer to ‘Sustainable Supply Involuntary
Chain and Responsible Sourcing’ section of ITC Labour
Sustainability & Integrated Report 2023. Wages
2. Details of the scope and coverage of any Human Others –
Rights Due Diligence conducted. please specify
The scope and coverage of Human Rights Due Diligence *The Company has Policies on Human Rights which are
extends to own operations including manufacturing applicable to all its employees and value chain partners.
locations, Hotels, offices and value chain partners. The said Policies and their implementation are directed
towards adherence to applicable laws and upholding
3. Is the Premise/Office of the Entity accessible to the spirit of Human Rights, as enshrined in existing
Differently Abled visitors, as per the Requirements of international standards such as the Universal Declaration
and the Fundamental Human Rights Conventions of the
the Rights of Persons with Disabilities Act, 2016? International Labour Organisation (ILO).
Most of our establishments are accessible to the
5. Provide details of any Corrective Actions taken
differently abled persons (including visitors), with facilities
or underway to Address Significant Risks/Concerns
like Persons with Disabilities (PWD) friendly entrance,
arising from the assessments at Question 4 above.
wheelchair, braille systems, and tactile pavers etc.
Accessible washroom is available at the ground floor for Please refer to responses to Questions 1 and 4 of
the visitors. Principle 5 under Leadership Indicators.
XXXIII
Principle 6
Businesses should respect and make efforts to protect and restore the environment.
1. Details of Total Energy Consumption (in Joules or multiples) and Energy Intensity.
In FY 2022-23, ITC Units consumed 26,885 Terra Joules (TJ) of energy.
Parameter FY 2022-23 FY 2021-22
Total Electricity Consumption (A) 2,061 1,808
Total Fuel Consumption (B) 24,635 22,407
Energy Consumption through other Sources (C) 189 179
Total Energy Consumption (A+B+C) 26,885 24,394
Energy Intensity Per Rupee of Turnover (Total energy consumption/turnover in rupees) 387 413
(GJ/Crore INR)
ITC’s energy consumption data has been assured at the ‘Reasonable Level’ by an independent third-party assurance
provider. For more details, refer to‘Climate Change’ section of ITC Sustainability & Integrated Report 2023.
2. Does the Entity have any Sites/Facilities fixed under the PAT scheme. The Bhadrachalam Unit is
identified as Designated Consumers (DCs) under the the first pulp and paper mill and the second unit in the
Performance, Achieve and Trade (PAT) Scheme of the country overall, to be rated GreenCo Platinum+ by CII,
Government of India? (Y/N) If yes, disclose whether as part of Green Company rating system. Additionally,
targets set under the PAT scheme have been achieved. Kovai Unit is also rated GreenCo Platinum+ by CII, as
In case targets have not been achieved, provide the
part of Green Company rating system.
remedial action taken, if any.
Details of the energy efficiency initiatives measures
Three Units of ITC’s Paperboards and Speciality
Papers Business and twelve Hotels of Hotels Business implemented during the year are included in
are covered under the PAT scheme. ITC has made ‘Disclosure on Conservation of Energy and Technology
significant investments in reducing energy consumption Absorption’ section of the Report of the Board of
and, accordingly, the performance of the Company’s Directors & Management Discuss and Analysis in ITC
Units covered far exceeds the energy efficiency targets Report and Accounts 2023.
3. Provide Details of the following Disclosures related to Water.

In FY 2022-23, ITC’s Total Water Intake was 34.5 million kilolitres (kl).
Water Withdrawal by Source (in million kilolitres)
(i) Surface Water 27.1 26.9
(ii) Groundwater 5.5 5.4
(iii) Third Party Water 1.9 1.4
(iv) Seawater/Desalinated Water 0 0
(v) Others 0.1 0.1
Total Volume of Water Withdrawal (in million kilolitres) (i + ii + iii + iv + v) 34.5 33.7
Total Volume of Water Consumption (in million kilolitres) 14.5 11.7
Water Intensity Per Rupee of Turnover (Water Withdrawal/Turnover) (kilolitre/Crore INR) 497 569
XXXIV
Over the years, ITC has created rainwater harvesting potential through extensive investments in its Integrated
Watershed Development Projects. The programme promotes the development and management of local water
resources in water-stressed areas by facilitating community participation in planning and implementing such
measures, whilst building, reviving and maintaining water-harvesting structures. The coverage of this programme
currently extends to 45 Districts of 16 States in India. During the year, ITC’s watershed development projects
covering over 1.47 million acres of land created a total rainwater harvesting potential (RWH) of nearly 50 million kl
(cumulative), which is over three times the net water consumed by ITC’s operations.
ITC’s water withdrawal and consumption data has been assured at the ‘Reasonable Level’ by an independent third-party
assurance provider. For more details, refer to ‘Water Security’ section of ITC Sustainability & Integrated Report 2023.
4. Has the Entity Implemented a Mechanism for Zero Liquid Discharge? If yes, provide details of its coverage and
implementation.
ITC’s approach to water stewardship focuses on reducing water intake by utilising treated wastewater within the
process, thereby reducing demand for fresh water. ITC Units have put in place necessary systems to comply with the
Consent To Operate (CTO) conditions including Zero Liquid Discharge, where applicable.
5. Please provide details of Air Emissions (other than GHG Emissions) by the Entity.
Parameter Please Specify Unit FY 2022-23 FY 2021-22
NOx Tonnes 2,382 1,799
SOx Tonnes 3,602 3,203
Particulate Matter (PM) Tonnes 825 637
Persistent Organic Pollutants (POP) NA NA NA
Volatile Organic Compounds (VOC) NA NA NA
Hazardous Air Pollutants (HAP)* Tonnes 8 7
*The data is for Paperboards & Specialty Papers Business’s Bhadrachalam Unit’s Hydrogen Sulphide emissions (H2S)
ITC’s air emissions data has been assured at the ‘Reasonable Level’ by an independent third-party assurance provider. For
more details, refer to ‘Air Emissions Management’ section of ITC Sustainability & Integrated Report 2023.
6. Provide details of Greenhouse Gas Emissions (Scope 1 and Scope 2 Emissions) & its Intensity.
Parameter Please Specify Unit FY 2022-23 FY 2021-22
Total Scope 1 Emissions (Break-up of the GHG into CO2, Kilo tonnes of CO2 1,355 1,258
CH4, N2O, HFCs, PFCs, SF6, NF3, if available) equivalent
Total Scope 2 Emissions Kilo tonnes of CO2 241 193

(Break-up of the GHG into CO2, CH4, N2O, HFCs, PFCs, SF6, equivalent
NF3, if available)
Total Scope 1 and Scope 2 Emissions Per Rupee of Tonnes of CO2/Lakh 23 25

Turnover INR
ITC’s Paperboards & Specialty Papers Business has large-scale farm forestry programmes promoting sustainable forest
management with primary aim of securing pulpwood requirement for Business continuity. ITC also has a large-scale Social
Forestry programme, which, in addition to sequestering carbon, also benefits the stakeholders by improving productivity of
wasteland, and de-risking poor rural households by diversifying farm portfolios through promotion of tree-based farming.
During FY 2022-23, the farm and social forestry programmes have together sequestered nearly six million tonnes of CO2,
which is more than two times the amount of CO2 generated from ITC’s operations.
ITC’s GHG emissions (Scope 1 and Scope 2) data has been assured at the ‘Reasonable Level’ by an independent third-party
assurance provider. For more details, refer to ‘Climate Change’ section of ITC Sustainability & Integrated Report 2023.
XXXV
7. Does the Entity have any Project related to reducing achieve strategic cost efficiencies and superior product
Green House Gas Emission? If Yes, then provide details. performance.
ITC has undertaken a target of 50% reduction in Specific Some of the major projects undertaken by ITC’s
GHG Emissions (% Reduction in Scope 1 & 2 emission per Paperboards and Specialty Papers Business as part of
Unit of Production) by 2030 as part of its Sustainability 2.0 its Digital Transformation Programme include process
ambitions. Accordingly, actions are being undertaken to debottlenecking and throughput improvement for
reduce greenhouse gas emissions by investing in energy productivity and Overall Equipment Effectiveness (OEE),
efficiency and increasing share of renewable energy. process capability improvement leading to reduction in
defects and resource optimisation.
Energy Efficiency:
Renewable Energy:
All ITC Units focus on energy efficiency through process
improvements and investment in new technologies. Over ITC has invested in renewable energy projects, for both
the years, ITC has implemented measures like installation renewable electricity and renewable thermal requirements.
of Vapour Absorption Machines (VAM), Automation in tube ITC has commissioned five biomass boilers, primarily at
cleaning system of Heating, Ventilation and Air Conditioning Foods Business, in the current year thereby replacing
(HVAC), and installation of energy efficient equipment such existing fossil fuel fired boilers. This initiative has led to
as chillers, AHUs, motors, fans, pumps, and agitators. In FY significant improvement in renewable thermal energy share
of ITC’s Foods Business (from 22% to 45%). In addition,
2022-23, the investments in energy conservation equipment
ITC has also invested in several solar electricity projects.
have resulted in energy savings of more than 200 TJ, which
Among them was capacity augmentation of offsite solar
is equivalent to over 24,000 tonnes of GHG emissions.
power plant at Tamil Nadu from 14.9 MW to 17.9 MW. With
In line with ITC’s focus on accelerating digitalisation across investments over the years, ITC has increased its renewable
Businesses, ITC’s Paperboards and Specialty Papers energy capacity to 178 MW. Based on the investments in
Business is implementing several transformative projects renewable electricity and renewable thermal projects, ITC
leveraging Industry 4.0 technologies across key business has been able to its increase its renewable energy share to
areas, to enhance productivity, reduce carbon footprint, 43% despite significant expansion in scale.
8. Provide details Related to Waste Management by the Entity.

Total waste generated is mentioned in rows (A) to (H)
Parameter (in Kilo tonnes) FY 2022-23 FY 2021-22
Plastic waste (A)* - -
E-waste (B) 0.110 0.071
Bio-medical Waste (C) 0.015 0.018
Construction and Demolition Waste (D) 5.9 6.5
Battery Waste (E) 0.2 0.3
Radioactive Waste (F) 0.001 0
Other Hazardous Waste. Please specify, if any. (G) 18 20
Other Non-hazardous Waste Generated (H). Please specify, if any. 689 699
(Break-up by composition i.e. by materials relevant to the sector)
Total (A + B + C + D + E + F + G + H) 713 726
Total waste recovered through recycling, re-using or other recovery operations
(i) Recycled 702 715
(ii) Re-used** - -
(iii) Other recovery operations 11 10
Total 713 725
Total waste disposed by nature of disposal method
(i) Incineration 0.6 0.6
(ii) Landfilling 0.5 0.3
(iii) Other disposal operations 0.1 0
Total 1.3 0.9
* Plastic waste is reported under Non-hazardous waste
** Waste re-used is reported under waste recycled
XXXVI
In FY 2022-23, the Company continued to recycle over 99% of solid waste from its operations. In addition to this,
the Company’s Paperboards & Specialty Papers Business recycled nearly 84,000 tonnes of externally sourced
post-consumer waste paper, thereby creating a positive environmental footprint. The Company also collected and
sustainably managed more than 100% of its post-consumer plastic packaging waste.
ITC’s waste data has been assured at the ‘Reasonable Level’ by an independent third-party assurance provider. For more
details, refer to ‘Towards Circularity’ section of ITC Sustainability & Integrated Report 2023
9. Briefly describe the Waste Management 10. If the Entity has Operations/Offices In/Around
Practices Adopted in your Establishments. Describe Ecologically Sensitive Areas (such as National
the Strategy Adopted by your Company to Reduce Parks, Wildlife Sanctuaries, Biosphere Reserves,
Usage of Hazardous and Toxic Chemicals in your Wetlands, Biodiversity Hotspots, Forests, Coastal
Regulation Zones etc.) where Environmental
Products and Processes and the Practices Adopted
Approvals/Clearances are Required.
to Manage such Waste
ITC’s existing operations/offices comply with applicable
The Company has initiated measures across Units to environmental regulations of the Country, and operate
ensure waste minimisation, segregation of waste at as per Consent to Operate (CTO) conditions from the
source and recycling. During the year, the recycling Central and State Pollution Control Boards in line with
level reached 99.8%. In addition, nearly 84,000 tonnes guidelines issued by the Ministry of Environment, Forest
of externally sourced post-consumer waste paper was and Climate Change, Government of India.
used as raw material during the year. 11. Details of Environmental Impact Assessments of
Projects Undertaken by the Entity based on Applicable
ITC follows a proactive approach to manage
Laws, in the Current Financial Year.
hazardous chemicals by actively looking for
alternatives, which not only helps keep its operations Not applicable
safe but also ensures safest products for customers. 12. Is the Entity Compliant with the Applicable
This approach is demonstrated in pioneering Environmental Law/Regulations/Guidelines in
practices implemented by ITC like Elemental India; such as the Water (Prevention and Control
of Pollution) Act, Air (Prevention and Control of
Chlorine Free (ECF) bleaching, and ozone bleaching
Pollution) Act, Environment protection act and rules
technology in India in its Paper Business, and
thereunder (Y/N). If not, provide details of all such
switching from solvent based inks to water-based Non-compliances.
ones in its Packaging and Printing Business.
ITC’s existing operations/offices comply with applicable
For more details, refer to ‘Chemical Safety Management’ environmental regulations of the Country, and operate
section of ITC Sustainability & Integrated Report 2023. as per CTO conditions from the Central and State
Pollution Control Boards.
1. Provide Break-up of the Total Energy Consumed (in Joules or Multiples) from Renewable and Non-renewable Sources
Parameter** FY 2022-23 FY 2021-22
From Renewable Sources
Total Electricity Consumption (A)@ 977 910
Total Fuel Consumption (B) #
10,339 9,099
Energy Consumption Through other Sources (C) $
189 179
Total Energy Consumed from Renewable Sources (A+B+C) 11,505 10,188
From Non-renewable Sources
Total Electricity Consumption (D)@ 1,085 898
Total Fuel Consumption (E)# 14,296 13,308
Energy Consumption Through other Sources (F) $
0 0
Total Energy Consumed from Non-renewable Sources (D+E+F) 15,381 14,206
@
This includes electricity from own wind or solar power plants, and purchased electricity.
#
This includes all fuels used within the premises including for onsite electricity generation.
$
This includes purchased steam.
** In Terra Joules (TJ)
ITC’s Energy performance has been assured at the ‘Reasonable Level’ by an independent third-party assurance provider. For more details,
refer to ‘Climate Change’ section of ITC Sustainability & Integrated Report 2023.
ITC’s overall consumption of renewable energy has increased by 13%, taking up the overall share of renewable energy to 43% as compared
to 42% in previous year despite significant increase in production footprint.
XXXVII
2. Provide the Following Details Related to Water Discharged:

Water Discharge by Destination and Level of Treatment (in million kilolitres)
(i) To Surface Water 11.7 12.2
No Treatment 0 0
With Treatment – please specify level of Treatment Secondary Secondary
(ii) To Groundwater 0 0
No Treatment NA NA
With Treatment – please specify level of Treatment NA NA
(iii) To Seawater 0 0
No Treatment NA NA
(iv) Sent to third-parties 8.3 9.8
No Treatment 0 0
With Treatment – please specify level of Treatment Tertiary Tertiary
Total Water Discharged (in million kilolitres) 20.0 22.0
ITC’s water discharge data has been assured at the ‘Reasonable Level’ by an independent third-party assurance provider. For
more details, refer to ‘Water Security’ section of ITC Sustainability & Integrated Report 2023.
3. Water Withdrawal, Consumption and Discharge in Areas of Water Stress (in Kilolitres).
ITC has developed the water risk assessment methodology for identifying water stressed areas based on WRI
Aqueduct’s Baseline Water Stress and Central Ground Water Board’s (India) groundwater block classification. Site
level assessment for water stress sites is done periodically using the above assessment framework and sites for
interventions are prioritised on the basis of stakeholder consultation and business needs. ITC’s water stewardship
goals are available in ‘Sustainability 2.0 Ambitions’ section of ITC Sustainability & Integrated Report 2023.
For each facility/plant located in areas of water stress, provide the following information:
(i) Name of the Area: Kapurthala, Saharanpur, Ranjangaon, Kothagudem, Bengaluru and Kovai
(ii) Nature of Operations: Manufacture of FMCG products and Paperboards & Specialty Papers
(iii) Water withdrawal, consumption and discharge in the following format:
Water Withdrawal by Source (in million kilolitres)
(i) Surface Water 27.1 26.9

(ii) Groundwater 0.1 0.2
(iii) Third Party Water 0.4 0.2
(iv) Seawater/Desalinated Water 0 0
(v) Others 0.04 0.05
Total volume of Water Withdrawal (in million kilolitres) 27.8 27.3
Total volume of Water Consumption (in million kilolitres) 9.3 6.6
Water Discharge by Destination and Level of Treatment (in million kilolitres)
(i) Into Surface Water 10.7 11.5
No Treatment 0 0
With Treatment – please specify level of Treatment Secondary Secondary
(ii) Into Groundwater 0 0
No Treatment NA NA
(iii) Into Seawater 0 0
No Treatment NA NA
(iv) Sent to third-parties 7.7 9.2
No Treatment 0 0
With Treatment – please specify level of Treatment Tertiary Tertiary
Total Water Discharged (in million kilolitres) 18.5 20.7
XXXVIII
4. Please Provide Details of Total Scope 3 Emissions & its Intensity

Parameter Unit FY 2022-23 FY 2021-22
Total Scope 3 Emissions (Break-up of the GHG into CO2, Kilo tonnes of CO2 295 318
CH4, N2O, HFCs, PFCs, SF6, NF3, if available) equivalent
Total Scope 3 Emissions Per Rupee of Turnover - -
The Company has been progressively increasing the coverage of its Scope 3 emissions by including more Supply
Chain partners in its reporting boundary. The scope of coverage for Scope 3 emission is mentioned in ‘Climate
Change’ section of ITC Sustainability & Integrated Report 2023.
ITC’s Greenhouse Gas emissions (Scope 3) have been assured at the‘Reasonable Level’ by an independent third-party
assurance provider.
For more details, refer to ‘Climate Change’ section of ITC Sustainability & Integrated Report 2023.
5. With Respect to the Ecologically Sensitive Areas It ensures continuity of delivery of products or
Reported at Question 10 of Essential Indicators above, services at pre-defined acceptable levels following a
Provide Details of Significant Direct & Indirect Impact disruptive incident.
of the Entity on Biodiversity in such areas along- 8. Disclose any Significant Adverse Impact to the
with Prevention and Remediation activities. (Refer Environment, Arising from the Value Chain of the
Response in above Essential Indicator 10) Entity. What Mitigation or Adaptation Measures have
Nil been taken by the Entity in this Regard.
6. If the Entity has Undertaken any Specific Initiatives ITC has a Board approved Policy on ‘Sustainable
or used Innovative Technology or Solutions to Supply Chain and Responsible Sourcing’ and
improve Resource Efficiency, or Reduce Impact due a ‘Code of Conduct for Suppliers and Service
to Emissions/Effluent Discharge/Waste Generated, Providers’. The Code is shared and accepted by all
please Provide details of the same as well as outcome supply chain partners and service providers. ITC
of such Initiatives. has a robust process of evaluating its Suppliers
The Company has undertaken a number of initiatives, and Service Providers before engaging with them,
and also deployed innovative technologies across proactively making them aware of its expectations/
its operations for improving resource efficiency requirements, and seeking commitment for
and minimising environmental impact. For details, compliance through contractual agreements.
refer to ‘Disclosure on Conservation of Energy and Additionally, ITC facilitates its value chain partners in
Technology Absorption’ forming part of the Report handling any adverse impacts.
of the Board of Directors & Management Discussion For example, managing hazardous chemicals is
and Analysis in ITC Report and Accounts 2023, not only important within ITC factories, but also in
and ‘Climate Change’, ‘Water Security’, ‘Towards the supply chain. Within the supply chain, farmers
Circularity’, ‘Chemical Safety Management’, working with hazardous pesticides is an area of
and ‘Air Emissions Management’ sections of ITC special attention. ITC’s approach is to eliminate
Sustainability & Integrated Report 2023. or reduce the use of hazardous pesticides.
7. Does the Entity have a Business Continuity and Intensive training is conducted on Integrated Pest
Disaster Management Plan? Management (IPM), which helps adopt a holistic
Yes, Business Continuity Plans have been made approach in reducing pesticide usage as well as
comprehensive to include all facets of operations, and substituting such pesticides with nature-based
are being tested at pre-determined intervals. These solutions. The training programmes also cover the
Plans have been duly approved by the Management safe handling of pesticides used and the responsible
Committees of the respective Businesses. management of waste generated.
Designed to address the threat of disruptions to 9. Percentage of Value Chain Partners (by Value of
business activities or processes, Business continuity Business done with Such Partners) that were assessed
and resilience planning validates the adequacy of for Environmental Impacts.
the existing systems and processes to prevent and Key value chain partners like third-party manufacturers
recover from potential threats. are encouraged to adopt management
XXXIX
practices detailed under International Standards Tobacco Programme (STP 2.0), GAP, etc. These
such as ISO 9001, ISO 14001, OHSAS 18001 and ITC’s standards, among others, also include environmental
Environment, Health and Safety (EHS) Guidelines. criteria. Additionally, ITC has initiated a third-party
Contract manufacturing agreements also include desktop assessment of its Critical* Tier 1 suppliers
aspects of EHS. Systems are in place for monitoring which includes key aspects on Environmental
and reporting on key Third-Party Manufacturers’ compliance and management practices.
(TPMs) environmental performance, including *All ITC businesses have identified Critical Tier-1 suppliers
energy, water and waste management. based on buy value, ESG risk exposure, importance to
ITC’s leading Agri value chains are assessed for business continuity, among others. ITC’s Sustainable
certification standards such as, Forest Stewardship Supply Chain Programme is focussed on working closely
Council® (FSC)®, Rainforest Alliance, Sustainable with the set of identified Critical suppliers.
XL
Principle 7
Businesses, when Engaging in Influencing Public and Regulatory Policy, should do so in a manner that is
Responsible and Transparent.
1 a. Number of Affiliations with Trade and Industry Chambers/Associations.
ITC’s Policy on Responsible Advocacy (https://www.itcportal.com/about-itc/policies/sustainability-policy.aspx)
provides the framework for necessary interface with Government/Regulatory Authorities on matters concerning
various sectors in which the Company operates. The Company’s engagement with the relevant authorities is guided
by the values of commitment, integrity, transparency and the need to balance the interests of diverse stakeholders.
The Company works with apex industry institutions that are engaged in policy advocacy as well as various other
forums. The Company had active affiliations with 89 such trade and industry chambers/associations.
b. List the Top 10 Trade and Industry Chambers/Associations (determined based on the total members of such
body) the Entity is a Member of/Affiliated to.
S. No. Name of the Trade and Industry Chambers/ Reach of Trade and Industry Chambers/
Associations Associations (State/National)
1 ASSOCHAM National
2 All India Management Association National
3 Confederation of Indian Industry National
4 Madras Management Association State
5 Indian Merchants Chamber of Commerce National
6 Mahratta Chamber of Commerce, Industries State

& Agriculture
7 PHD Chamber of Commerce & Industry National
8 Bombay Management Association State
9 Federation of Indian Chambers of Commerce National
& Industry
10 Retailers Association of India National
XLI
2. Provide Details of Corrective Action Taken or Underway on Any Issues Related to Anti-competitive Conduct by
the Entity, based on Adverse Orders from Regulatory Authorities.
The Company has not engaged in any anti-competitive conduct.
1. Details of Public Policy Positions Advocated by the Entity.
S. Public Policy Method Resorted for Whether Frequency of Web Link, if
No. Advocated such Advocacy Information Review by Board available
Available in Public (Annually/Half-
Domain? yearly/Quarterly/
(Yes/No) Others – please
specify)
1. The Company’s Policy The Company works with For more details, Annually -
on Responsible apex industry institutions refer to ‘Report
Advocacy approved that are engaged in of the Board
by the Board provides policy advocacy, like the of Directors &
the framework for Confederation of Indian Management
necessary interface Industry, Federation Discussion and
with Government/ of Indian Chambers of Analysis’ section
Regulatory Authorities Commerce & Industry, forming part of
on matters concerning Associated Chambers of ITC’s Report and
various sectors in Commerce and Industry Accounts 2023.
which the Company of India, and various
operates. other forums including
regional Chambers of
Sector-wise matters
Commerce
taken up are in line
with national priorities The Company’s
to strengthen engagement with the
domestic industry, relevant authorities is
promoting sustainable guided by the values of
agriculture and commitment, integrity,
business practices. transparency and taking
into consideration
interests of all
stakeholders.
XLII
Principle 8
Businesses Should Promote Inclusive Growth and Equitable Development.
1. Details of Social Impact Assessments (SIA) of Projects Undertaken by the Entity Based on Applicable Laws, in
the Current Financial Year.
None of the projects undertaken by ITC in FY 2022-23 required Social Impact Assessments (SIA).
SIA Date of Whether Results Relevant
Notification Notification Conducted by Communicated Web link
Name and brief No. Independent in Public
details of project External Domain
Agency (Yes/ (Yes/No)
No)
Not Applicable
2. Provide Information on Project(s) for which Ongoing Rehabilitation and Resettlement (R&R) is being Undertaken
by your Entity.
S. No. Name of State District No. of Project % of PAFs Amounts paid

Project for Affected covered by to PAFs in the
which R&R is Families R&R FY (In INR)
ongoing (PAFs)
Not Applicable
3. Describe the Mechanisms to Receive and Redress pertaining to the commitments of programmes were
Grievances of the Community. recorded. Largely, requests and demands were raised
during these meetings for further expansion of scope
ITC’s Social Investments Programme (SIP) adopts a
of existing programmes. The SIP state teams have
bottom-up approach by keeping community needs and
taken cognisance of all the relevant concerns and
priorities at the center of all its interventions. Detailed
applicable actions have been incorporated in plans for
and structured community engagements are planned
the upcoming year.
every 4-5 years to revisit the changing needs of the
community and the emerging priorities which feed into Details on mechanisms to receive and redress
designing of new interventions and re-designing of grievances of the community are also provided under
ongoing and new programmes. Question 23 of Section A - Part VII of this Report.
Further, regular community interactions are undertaken 4. Percentage of Input Material (inputs to Total Inputs
by the internal state level programme teams and by Value) Sourced from Suppliers.
the implementing partners to discuss, identify and FY 2022-23 FY 2021-22
address any issues, complaints and grievances of the Directly Sourced from
MSMEs/Small Producers 18.81% 15.76%
community members pertaining to the interventions of
Social Investments Programme. Sourced Directly from
within the District and 53.40% 45.73%
SIP has also formalised and internalised the process of Neighbouring Districts
undertaking and recording such community interactions
in-line with the new SEBI requirements on Business
Responsibility and Sustainability Reporting.
1. Provide Details of Actions taken to Mitigate any
Such discussions not only focus on complaints and
Negative Social Impacts Identified in the Social Impact
grievances, but also on providing resolution in a time
Assessments (Reference: Question 1 of Essential
bound manner. During 2022-23, 66 such community
Indicators above):
engagements were held across all major states where
SIP programmes are implemented. No grievances Not applicable
XLIII
2. Provide the following Information on CSR Projects Undertaken by your Entity in Designated Aspirational
Districts as Identified by Government Bodies:
State Aspirational District Amount (Rs. In Lakhs)
Telangana Bhadradri Kothagudem 1024.44
Uttarakhand Haridwar 604.24
Assam Darrang 292.11
Rajasthan Baran 252.37
Madhya Pradesh Vidisha 243.99

Odisha Malkangiri 225.64
Madhya Pradesh Damoh 156.05
Uttar Pradesh Chandauli 115.95
Bihar Begusarai 112.35
Chhattisgarh Sukma 89.69
Uttar Pradesh Bahraich 88.17
Multiple* (15 States) Multiple* 1117.64
*Spends in balance 52 Aspirational Districts of the total 63 where ITC had CSR projects
3. a. Do you have a Preferential Procurement Policy 5. Details of Corrective Actions Taken or Underway,
where you give Preference to Purchase from Suppliers based on any Adverse Order in Intellectual Property
Comprising Marginalised/Vulnerable Groups? (Yes/No): Related Disputes wherein usage of Traditional
Knowledge is Involved.
The Board approved Policy on Sustainable Supply Chain
and Responsible Sourcing defines the supply chain Not Applicable
partners which includes farmers. ITC is committed
6. Details of Beneficiaries of CSR Projects:
to collaborating with farmers to make them more
sustainable and help build their adaptive capacity and In the social sector, the two most important
resilience to emerging risks like climate change, water stakeholders of ITC are:
stress and other extreme weather events. ITC is also • Rural communities with whom the Company’s
raising awareness and working with farmers on crop agri-businesses have forged long and enduring
quality, safety, protection, integrity and traceability, as partnerships; and
applicable.
• Communities residing in close proximity to our
b. From which Marginalised/Vulnerable Groups do you manufacturing Units, situated in urban and semi-
Procure? rural locations
Farmers including women farmers and small The beneficiaries of ITC’s CSR programmes mostly
landholders have been identified as marginalised/ belong to the under privileged sections of the society
vulnerable group. and small & marginal farmers who face the challenges
c. What Percentage of Total Procurement (by value) of securing sustainable livelihoods. These challenges
does it Constitute? are addressed through the Two Horizon approach of
making today’s dominant source(s) of livelihoods
During FY 2022-23, ITC consumed nearly 2,000 Kilo
sustainable; and strengthening capabilities for
tonnes of agri raw materials, which is nearly 71% of
tomorrow.
overall raw materials’ consumption.
The Two Horizon strategy ensures an integrated
4. Details of the Benefits Derived and Shared from
approach to development involving several
the Intellectual Properties Owned or Acquired by
interventions. Presented ahead are the total number
your Entity (in the current Financial Year), based on
of approximate beneficiaries for key interventions and
Traditional Knowledge.
estimated proportion of beneficiaries belonging to
Not Applicable vulnerable and marginalised groups.
XLIV
CSR Projects No. of Beneficiaries from % of Beneficiaries from Vulnerable

CSR Projects (2022-23) and Marginalised Groups
Climate Smart Agriculture 7.4 lakhs# SC/ST – 21%; Female – 20%
Water Stewardship 32,400 SC/ST – 25%; Female – 22%
Social Forestry 8,795 SC/ST – 25%; Female – 26%
Improved Animal Husbandry Practices 79,400 SC/ST – 19%; Female – 60%
Support to Education 2.5 lakhs Children – 100%; ~50% girl children
Skilling of Youth 14,400 SC/ST – 34%; Female – 46%
Sanitation 6,930 SC/ST – 5%
Waste Management 25.3 lakhs SC/ST – 18%
Mother and Child Health and 6.8 lakhs 100% - women, adolescents
Nutrition and children
Women Empowerment 8.1 lakhs* 100% women
#
excludes farmers covered under NITI Aayog partnership programme
* includes Self Help Group (SHG) members and Madhya Pradesh State Rural Livelihoods Mission SHG members
The table ahead presents the 2030 targets for key initiatives undertaken by SIP and achievement made till FY 2022-23
to demonstrate that the progress on the targets are on track.
Objective Initiatives UoM Target Achieved till

2030 FY 2022-23
Horizon I - Sustainable Livelihoods Today
Climate Smart Agriculture for Climate Smart Lakh Acres 40 23.4
Climate Risk Assessments, Agriculture Area1
Climate Change Adaptation,
and Actions for Sustainable Climate Smart Village Lakh Acres 30 10
Improvement of Yields and Area (Sub-part of
Incomes above)1#
Natural Resources Watershed Lakh Acres 22 14.7

Management to Conserve and Development
Replenish Natural Resources
Critical for Agriculture Water Harvesting Nos. 50,000 28,300
Structures (including
Groundwater
Recharge Structures)
Storage Potential# Million KL 60 48.9
Crop Water Use Million KL 2,000 780
Efficiency#
Bio-Diversity Lakh Acres 10 2.9
Conservation#
Livelihood Diversification to On-farm Lakh Acres 6.3 4.56
Improve Incomes and Diversification – Social
De-risk Livelihoods from Forestry#
Climate Change
Off-farm Household 10 4.68
Diversification Coverage
- Livestock- (Lakhs)
based Livelihood
Strengthening
Institutional Support for Risk Link Farmers No. of 50 9.5
Mitigation and Reduction of with Government Linkages
Costs of Cultivation programmes (Lakhs)
Agri Business Centres Nos. 2,000 916
Farmer Producer Nos. 4,000 1,150

Organisations
XLV
Objective Initiatives UoM Target Achieved till

2030 FY 2022-23
Horizon II - Creating Capabilities for Tomorrow
Support to Education for Improvement in No. in Lakhs 15 11
Improving Quality of Education Learning Outcomes –
and Creating Conducive Children Covered
Learning Environment Infrastructure Support Nos. 4,000 3,321
to Government
Schools and
Anganwadis
Skilling of Youth for Enabling Vocational Training – No. in Lakhs 2.25 1
Livelihood and Employability Youth Trained
Provide Access to Sanitation Household Toilets No. 40,000 39,600
and Waste Management Constructed
Services to Improve Habitats Waste Management No. of 45 25.3
(SWM) – Households Households
Covered excluding (Lakhs)
under WOW
Provide Healthcare and Beneficiaries No. in Lakhs 12 6.8
Nutrition services to Women Covered under MCH
and Children Programme
Empowering Women for Women Covered No. in Lakhs 2.5 1.2
Reduction in Economic and through Livelihood
Social Discrimination and other
Microenterprises
Note:
1
Figures on Climate Smart Village and Climate Smart Agriculture area pertains to scale in that FY
#
These indicators also contribute to five of the Company’s Sustainability 2030 (S 2.0) commitments
XLVI
Principle 9
Businesses should engage with and provide value to their consumers in a responsible manner.
1. Describe the Mechanisms in place to Receive and Respond to Consumer Complaints and Feedback.
A well-established system is in place for dealing with consumer feedback. Consumers are provided multiple options
to connect with the Company through email, telephone, website, social media, feedback forms, etc. In addition, the
Company’s Businesses have dedicated consumer response cells to respond to their queries and receive feedback on
products to enable continuous improvement of its products and services.
2. Turnover of Products/Services as a Percentage of Turnover from all Products/Service that Carry Information about:
All products/services of the Company contain relevant information as required under applicable laws.
3. Number of Consumer Complaints in respect to the following:
FY 2022-23 Remarks FY 2021-22 Remarks
(Current Financial (Previous Financial Year)
Year)
Received Pending Received during Pending
during resolution the Year resolution at
the Year at end of end of Year
Year
Data 0 0 A Customer Relationship During FY 2021-22, around 10,000 complaints
Privacy Management (CRM) were received across Businesses, and more
Advertising 13 0 platform has been than 97% of these were resolved as on 31st
implemented for capturing March, 2022.
Cyber-se- 0 0
complaints, queries,
curity
feedback and suggestions
Delivery of 521 0 received across channels.
Essential The CRM platform also
Services* provides consumer
Restrictive 726 0 insights for bringing about
Trade Prac- process-related changes
tices* and system enhancements
Unfair 13 0 for improving the CSAT
Trade Prac- (Customer Satisfaction)
tices* scores.
Others* 17,573 1,648
*Definition of complaints under various categories is given below
Category Complaints Related to

Delivery of Essential Services Availability Related
Restrictive Trade Practices Quantity and Weightage Related, Duplicate Pack
Unfair Trade Practices High Pricing (Product sold above MRP)
Product Quality Related Complaints, Service Related Complaints Against Distributor/
Others Retailer/Salesmen, Availability led Complaints, and Complaints Made on Account of
Fraudulent Calls/E-mails Offering ITC’s Distributorship
4. Details of Instances of Product Recalls on Account of Safety Issues:

Nil
Number Reasons for recall
Voluntary Recalls Nil Not Applicable
Forced Recalls Nil Not Applicable
XLVII
5. Does the Entity have a Framework/Policy on Cyber Security and Risks related to Data Privacy? (Yes/No) If available,
provide a web-link of the policy.
A Cyber Security Committee, chaired by the Chief Information Officer, is in place to provide specific focus on cyber security
related risks, with the primary responsibility of tracking emerging practices and technologies and providing suitable
recommendations for enhancing security of the IT systems and infrastructure. The Chief Information Officer is responsible
for ensuring that the Cyber Security systems remain effective and contemporary. He also participates in the meetings of
the Risk Management Committee of the Company, whenever matters related to Cyber Security are considered.
ITC’s Information Management Policy defines the framework/policy on cyber security and risks related to data
privacy. ITC’s Privacy Policy is part of Information Management Policy and is published on ITC Portal (please refer to
https://www.itcportal.com/about-itc/policies/privacy-policy.aspx).
6. Provide details of any Corrective Actions taken or underway on Issues relating to Advertising, and Delivery of Essential
Services; Cyber Security and Data Privacy of Customers; Re-occurrence of Instances of Product Recalls; Penalty/Action
taken by Regulatory Authorities on Safety of Products/Services.
Robust systems have been put in place to identify the issues faced by the consumers and ensure timely resolution of
the same. Efforts are in place to continually strengthen the quality assurance system and to improve delivery timelines.
1. Channels/Platforms where Information on Products and Services of the Entity can be Accessed (provide web
link, if available).
Products/Initiative Link
ITC Corporate Website https://www.itcportal.com/
ITC’s Businesses https://www.itcportal.com/businesses/index.aspx
ITCstore.in https://itcstore.in
ITC Brandworld https://www.itcportal.com/brands-microsite/default.aspx
“WeAssure” Programme https://www.itchotels.com/content/dam/itchotels/in/umbrella/documents/WeAssure-
itc-hotels.pdf
2. Steps taken to Inform and Educate Consumers regard to Consumer Satisfaction relating to the major
about Safe and Responsible Usage of Products and/or Products/Services of the Entity, Significant Locations
Services. of Operation of the Entity or the Entity as a whole?
(Yes/No)
All Businesses of the Company comply with the
regulations and relevant voluntary codes concerning As an integral part of ITC’s consumer satisfaction focus,
marketing communications, including advertising, attention is paid to product information and labelling
promotion and sponsorship. The Company’s and consumer engagement by the Businesses. ITC’s
communications are aimed at enabling consumers to Businesses have an established system for monitoring
make informed purchase decisions. The Company also customer satisfaction and it ensures that their feedback
makes efforts to educate consumers on responsible is addressed in a systematic manner.
usage of its products and services. For more information on Product Information,
For more information, refer to ‘Product Sustainability’ section of Labelling and Consumer Feedback Management, refer
ITC’s Sustainability & Integrated Report 2023. to ‘Product Sustainability’ section of ITC Sustainability &
3. Mechanisms in place to Inform Consumers of Integrated Report 2023.
any Risk of Disruption/Discontinuation of Essential 5. Provide the following Information relating to Data
Services. Breaches:
The Company has necessary mechanisms in place a. Number of Instances of Data Breaches along with
to inform consumers if any major discontinuation Impact.
happens.
Nil.
4. Does the Entity Display Product Information on the
b. Percentage of Data Breaches involving Personally
Product over and above what is Mandated as per Local
Identifiable Information of Customers.
Laws? (Yes/No/Not Applicable) If yes, provide details
in brief. Did your Entity Carry out any Survey with Nil.
XLVIII
ITC Infotech
Strengthening the
Foundations towards the
next Orbit of Growth and
Differentiation
FY 2022-23 was the year in which ITC Infotech further
strengthened its organisational foundations towards
the next orbit of its growth and differentiation.
Through industry-defining and capability-led strategic
partnerships with its key clients, ITC Infotech
expanded its global footprint, amplifying its vision of
providing business-friendly solutions to its clients.
Capability-led Differentiation
ITC Infotech stayed relevant to the evolving business

priorities of its clients, partnering with them in driving
their growth and transformation agenda.
The Company invested in strengthening its existing
capabilities and identifying new opportunities for
long-term growth and differentiation. The Company
continued to make focused investments in amplifying
its portfolio of client and industry-led capabilities
which include PLM-led Digital Thread Solutions,
Digital Manufacturing, Open Hospitality, Cloud, and
Sustainability. The Company continued to strengthen
existing relationships and forge new alliances with
Independent Software Vendors (ISVs) to amplify its
capabilities in focused areas such as Direct to
Consumer (D2C), Digital Workplace Solutions, Digital
Manufacturing, Enterprise Resource Planning (ERP)
and Data & Analytics, and sharpen its focus on key
customer relationships across all industry verticals.
Further to a strategic partnership agreement with
PTC Inc., (a global technology company headquartered
in Boston, USA), the Company started a new Service
Line, DxP Services, comprising a global ecosystem
of PLM-led Digital Thread and SaaS experts.
Sustained Recognition from Analysts
ITC Infotech’s business-friendly solutions and new-age capabilities continued to gain global recognition. In Avasant’s
RadarView™, the company was positioned as ‘Innovator’ in CPG Digital Services 2022-23; ‘Disruptor’ in Digital CX
Services 2022-23, Digital Workplace Services 2022, Manufacturing Digital Services 2022-2023, and Intelligent
Automation Services 2022-23; and featured as ‘Challenger’ in GCC Region Digital Services 2022-23. The Company’s
Automation capabilities were positioned in the ‘Leadership Zone’ in Zinnov Zones Hyperintelligent Automation
Services H1 2023 for Intelligent Automation Services – Retail, CPG and mid-tier service providers and Robotic
Process Automation Services (mid-tier service providers).
Expanding our Global Footprint
To support the growing business and

client requirements, ITC Infotech
expanded its global footprint by
setting up new subsidiaries in Brazil,
France, Germany, and Malaysia and
branches in Abu Dhabi (UAE), Canada,
Italy, Poland, Romania, and
Switzerland. These global expansions
further strengthened the company’s
diverse global fabric and its onshore
and nearshore capabilities from the
client, organisational and employee
perspective.
40 Nationalities | Operations in 39 countries
Continued Investments in Talent-Development
To fulfil its demand for talent to support its growing business

requirements, ITC Infotech continued to invest in hiring,
training, and retaining high-quality talent. The Company
continued to recruit in the ‘Hire-from-Anywhere’ model, to
attract quality talent across Tier 1 and Tier 2 cities.
The Company increased its campus hiring and continued to
make focused investments in strengthening its Learning and
Development capabilities. The Company’s next-gen learning
platform, ‘Learning Hub’, continued to gain traction with
clients. ‘Learning Hub’ is an online and mobile-friendly
learning platform that gives employees access to learning
academies that are customised to client-specific business
processes, technologies, skills, and ways of working.
Deepening our Investment in Sustainability & CSR
ITC Infotech continues to focus on its strategic pillars of Customer

Centricity, Employee Centricity, and Operational Excellence, towards
fulfilling its vision of providing business-friendly solutions to its
clients. Further, during the year, the Company has strengthened its
focus on Sustainability through a defined charter and also embarked
on its Corporate Social Responsibility (CSR) journey through
initiatives for promoting Science, Technology, Engineering, and
Mathematics (STEM) education. As clients across industries and
geographies are looking to drive cost efficiencies while sustaining
growth momentum, the Company is focused on being their trusted
partner in this journey. An endorsement of this strategy has been the
signing of a multi-million, multi-year deal with an existing marquee
client in March 2023, which will bolster mid-term revenue growth.
CII-ITC Centre of Excellence

for Sustainable Development
The ‘CII–ITC Centre of Excellence for Sustainable recycle 50% of plastic packaging and ensure 25% average
Development’, established by ITC in 2006 in collaboration recycled content across all plastic packaging. There are
with the Confederation of Indian Industry (CII), continues four Collaborative Action Groups (CAG) which identified
to focus on promoting sustainable business practices priority areas for action around these targets.
amongst Indian enterprises. An Advisory Council, which
The Centre signed a Memorandum of Cooperation with
includes members from the industry, civil society and
MoEFCC to support the development of a multi-stakeholder
institutions, provides strategic direction to the Centre.
partnership for Wetlands Conservation on 21st May 2022,
The 17th Sustainability Summit, with the theme ‘Building followed by the launch of India Wetland Coalition (IWC).
a Sustainable Tomorrow: Transforming Risks into The India Business and Biodiversity Initiative (IBBI)
Opportunities’ was organised on 21st and 22nd September submitted businesses’ recommendations on Post 2020
2022, at the Le Meridien, New Delhi. The conference had Global Biodiversity Framework to MoEFCC which was used
approximately 350 participants and was organised with the during the COP15 of UN CBD (Convention on Biodiversity).
support of 28 partner organisations. The congregation
comprised 1 national and 1 international (recorded) Minister, 200 countries, including the GoI, committed for the new
along with 116 speakers from diverse sectors, out of which Global Biodiversity Framework, in which Target 15 is
28% were female speakers and 18% were global speakers. focused on business disclosures on nature-related
impacts and dependencies. IBBI constituted a National
The CII Climate Action Charter was launched on 21st
Consultation Group on draft TNFD Framework, to be
September 2022, at the 17th Sustainability Summit.
launched in 2023.
The Charter has more than 150 signatories across sectors,
ranging from hard-to-abate sectors (cement, steel, and The endeavour to provide cleaner air and a better quality of
metals & mining), multi-sector diversified businesses, life to every Indian citizen was given a thrust during the year.
MSMEs (tanning, textiles and consultancies) and service The aspirations to achieve tangible improvements in
sectors, (IT and ITeS). The state-level initiative was held in ambient air quality were further strengthened.
Tirupur, Coimbatore, Indore, and Jaipur on 20th and 21st The 101 signatories to the ‘India CEO Forum for Clean Air’
December 2022, respectively, where more than committed to take action, on air pollution, provide leadership
100 MSMEs stated their interest and committed to join the for clean air action and work collaboratively on air pollution
Climate Action Charter. Under India’s G20 presidency, CII mitigation. A ‘Multi Agency Collaborative Project on Air
has been given the role of the B20 secretariat. The Centre Pollution’ was initiated for the Indore Metropolitan Region
is leading work on framing policy briefs under the (IMR) under ‘Clean Air-Better Life’ – CABL initiative.
Taskforce on Energy, Climate Change, and Resource A national-level dynamic library of solutions was designed
Efficiency and Action Council on ESG in Business. and launched on 15th August 2022. The Centre also directed
The first India Plastics Pact Annual Conference was held Crop Residue Management interventions covering 300
on 21st September 2022, to convene all signatories of the villages across 12 districts in Punjab and Haryana.
India Plastics Pact for the first time in a physical meeting. The preliminary results show burning was avoided on 85%
The conference also marked the completion of IPP’s first of total intervened farmland (approximately 3 lakh acres) in
year since launch. The Pact has set four major targets: the year 2022. A Report titled ‘Impacts and Learnings from
Eliminate unnecessary or problematic plastic packaging Field’ on Crop Residue Management activity was released
and items; reuse or recycle 100% of plastic packaging, on International Day for Clean Air in September 2022.
ITC Sangeet Research Academy
ITC Sangeet Research Academy (ITC-SRA), created in Ajoy Chakrabarty, Padma Shri Pandit Ulhas Kashalkar,
1977 as an independent Public Charitable Trust, is an Pandit Partha Chatterjee, Pandit Uday Bhawalkar,
embodiment of ITC’s sustained commitment to a Vidushi Subhra Guha, Shri Omkar Dadarkar and
priceless national heritage. The Company’s pledge Shri Brajeswar Mukherjee. The focus of the Academy
towards ensuring enduring excellence in Classical remains the nurturing of exceptionally gifted students,
Music education continues to drive ITC-SRA in carefully hand-picked from across India. ITC-SRA
furthering its objective of preserving and propagating provides its scholars with a stipend, along with free
Hindustani Classical Music through this modern tuition, boarding, and lodging within its campus and in
Gurukul based on the traditional ‘Guru-Shishya other designated locations under the tutelage of the
Parampara’. The Academy, through its eminent Gurus, country’s most distinguished musicians. The objective
imparts intensive training and quality education in of ITC-SRA is to create the next generation of masters
Hindustani Classical Music to its scholars. The present of Hindustani Classical Music for the continued
Gurus of the Academy are Padma Bhushan Pandit propagation of a precious legacy.
Awards
and & Accolades
Sustainability Report REPORT AND ACCOUNTS 2023
Major Awards & Certifications 2022-2023
• Sustained ‘AA’ rating by MSCI-ESG for the fifth • ITC’s Paperboards & Specialty Papers Business
consecutive year; ITC retained its CDP score of ‘A-‘ won the Pulp & Paper International (PPI) Awards
(Leadership Level) for climate change and water by Fastmarkets RISI in the category of ‘Internet of
security for the second consecutive year Things and Digitalisation’
• 12 ITC Hotels became the first in the world to receive • ITC’s Packaging Business was recognised as
the LEED Zero Carbon Certification; 2 ITC Hotels also ‘Packaging Company of the Year’ at the Printweek
became the first in the world to achieve the LEED Awards 2022; It also won three prestigious World
Zero Water Certification Packaging Organisation Awards for developing
• ITC Sankhya in Bengaluru became the world’s first sustainable packaging solutions
data centre to be LEED Zero Carbon certified
• ITC’s Bengaluru Unit won the ‘Responsible
• ITC’s Malur Unit became the first food factory in Asia Manufacturer of the Year Award 2022 – Platinum
to be awarded the prestigious Alliance for Water Medallion’ by the Kaizen Hansei Institute
Stewardship (AWS) Platinum-level certification
• ITC won the PAC Global Award of Distinction 2023 under
• ITC Limited was conferred the ‘Company of the Year’
the ‘Brand Marketing - Limited Edition’ category for its
Award at the Economic Times Bengal Corporate Awards
legacy ‘75 Years of Glory’ matches pack
• ITC was adjudged the winner at The Bengal Chamber
of Commerce and Industry Corporate Governance • ITC Foods Division won the Marketing Team of the
Recognition 2022 Year at the exchange4media Indian Marketing Awards
• ITC featured among the top 3 at the first ever • ITC Engage’s Pocketful O’Stories won a Gold for the
LinkedIn Talent Awards in the ‘Best Employer Brand best use of User Generated Content at ET Digi+ Awards
on LinkedIn’ category • ITC’s Agri Business was recognised as the ‘Best
• ITC won 9 first prizes at the Public Relations Society Innovator in Data & Analytics’ and ‘Logistics & Supply
of India (PRSI) National Awards 2022 Chain Innovation Company of the Year’ by ET Ascent
Major Awards & Certifications over the Years
• ITC was awarded the First Prize in the ‘Best Industry • ITC’s Life Sciences and Technology Centre was
for CSR Activities’ category by the Ministry of ranked ‘Top Innovator’ in India amongst Indian
Jal Shakti, Government of India, at the 3rd National pharma and healthcare private companies
Water Awards 2020 • ITC’s Kovai unit received the Platinum-level certification,
• ITC was conferred the ‘Best Governed Company’ the highest recognition for water stewardship in the
Award in the Listed Segment: Large category by the world, based on international benchmarks, from the
ICSI at the 20th ICSI National Awards for Excellence Alliance for Water Stewardship, Scotland
in Corporate Governance • ITC won the prestigious Porter Prize 2017 for
• Mr Sanjiv Puri, Chairman & Managing Director, was ‘Excellence in Corporate Governance and
honoured with the ‘Distinguished Alumnus Award of Integration’ and for its exemplary contribution in
the Year 2018’ conferred by IIT, Kanpur in recognition ‘Creating Shared Value’
of his achievements of exceptional merit (2018) • ITC’s leading hygiene brand Savlon bagged 7 awards
• Mr Sanjiv Puri, Chairman & Managing Director, was at the coveted Cannes Lions 2017
conferred ‘The IMPACT Person of the Year, 2020’ Award • ITC Limited became the 1st company to win the India
by exchange4media, a leading online news platform Today Safaigiri Corporate Trailblazer Award 2016
• Mr Sanjiv Puri, Chairman & Managing Director, • ITC’s Paperboards and Specialty Papers units at
was ranked one of India’s Most Valuable CEOs by Bhadrachalam, Bollaram, Kovai and Tribeni are
BW Businessworld FSC Chain of Custody certified
• Mr Nakul Anand, Executive Director, was conferred • ITC was presented the World Business and
the HICSA (Hotel Investment Conference - South Development Award at the Rio+20 UN Summit for its
Asia) Lifetime Achievement Award Social and Farm Forestry initiative
For other awards and accolades, please refer to www.itcportal.com
ITC: Transforming Lives
and Landscapes
Farmer Empowerment Water Stewardship Afforestation

• Increasing productivity & farmer income, promoting climate • Over 14 lakh acres covered • Over 10 lakh acres greened
smart agriculture, creating market linkages • Over 28,300 water harvesting • About 190 million
• ITCMAARS bringing digital technology to farmers, supporting structures built person-days of employment
1150 FPOs; covering more than 5 lakh farmers • Around 11.8 lakh acres covered supported
under demand side management
Biodiversity Climate Smart Agriculture Women Empowerment Supplementary Education

• Over 2.9 lakh acres restored • 7,40,000 farmers benefitted • Over 1.2 lakh women benefitted • Over 11 lakh rural children
• 23.4 lakh acres covered Mother & Child Healthcare covered
• Over 5.6 lakh beneficiaries
covered
Skilling and Vocational Training Health & Sanitation Livestock Development Solid Waste Management
• Over 1.2 lakh youth enrolled • Over 39,600 Individual • Over 21 lakh milch animals • Over 2.2 crore citizens
Household Toilets constructed covered covered under Well-being
• Over 4.68 lakh households Out of Waste
covered
Renewable Energy Plastic Neutral Pioneer of Green Building Movement in India

• Over 43% of Energy • Plastic Neutral since 2021-22 • 40 Green Buildings
consumed from Renewable • World’s first 12 LEED Zero Carbon certified hotels
Sources
• World’s first LEED Zero Carbon data centre
• World’s first 2 LEED Zero Water certified hotels
ITC is the only enterprise in the world to be water positive for 21 years,
carbon positive for 18 years and solid waste recycling positive for 16 years

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Nation First: Sab Saath Badhein

REPORT AND ACCOUNTS 2023

Contents Click 'ITC Limited' on the Header/Footer of each page to return

ITC: Contributing to India’s Amrit Kaal

Board of Directors and Committees 01

Report on Corporate Governance (including Shareholder Information) 12

Report of the Board of Directors & Management Discussion and Analysis 38

Secretarial Auditor’s Report 131

CEO and CFO Compliance Certificate 145

Standalone Financial Statements

Balance Sheet 146

Statement of Profit and Loss 147

Statement of Changes in Equity 148

Cash Flow Statement 150

Notes to the Financial Statements 152

Independent Auditor’s Report 214

Guide to Subsidiaries, Joint Ventures & Associates 226

Salient Features of the Financial Statements of Subsidiaries,

Consolidated Financial Statements 233

Ten Years at a Glance 322

Business Responsibility and Sustainability Report I-XLVIII

ITC Infotech: Business Friendly Solutions

Creating Enduring Institutions

Awards & Accolades

The mnemonic is a visual representation of ITC’s deep commitment to sustainable

ITC: Contributing to India’s Amrit Kaal

Spices, Coffee, Frozen Marine Products and

ITC - Making in India

ITC: Transforming Agriculture

ITC – Reimagining Sustainability social challenges of inequity and livelihood

ITC’s Triple Bottomline Contribution

75% Among Top 3

Net Cash from Total Dividend

*for the year ended 31st March, 2023

ITC’s Triple Bottomline Contribution

Over 50 Lakh Women

Benefitted through Multi-dimensional

Watershed Development: Biodiversity Conservation:

Climate Smart Agriculture:

Acres Covered in 17 states Plastic Neutral

ITC Malur is the

Recognition for ITC’s Initiatives

Paperboards & Packaging Businesses

No. 1 No. 1 No. 1

ITC’s Agri Business –

ITC - One of India’s Largest Agri Business Players

Value-Addition for Exports and Domestic Markets

ITC: Ushering in NextGen Agri

Building Climate Resilience through Climate Smart Agriculture

ITC: Empowering Rural Communities

Creating Vibrant Demand Driven Value Chains Anchored by Brands

Wheat Potato Fruit Pulp Spices

Millets Milk Paper

ITC: Building World-Class

ITC’s Branded Packaged Foods

Biscuits, Cookies and Cakes

Potato Chips and Finger Snacks Instant Noodles and Pasta

ITC: Building World-Class

ITC’s Branded Packaged Foods

Spices and Papad