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100 Inspiring Years 1910-2010

Presented By:
Hari Mohan
Nakul Gupta Gaurav Yadav Kuldeep Jain Sumit Sindhu

Y C Deveshvar, Chairman
It is ITC endeavor to continuously explore for growth by synergizing and blending its multiple core competencies to create new epicentres of growth. It is indeed a matter of great satisfaction that together we have built a national asset that will continue to create growing value for all our shared tomorrows. The employees of ITC are inspired by the vision of growing ITC into one of Indias premier institutions and are willing to go the extra mile to generate value for the economy, in the process creating growing value for the shareholders.

In commemoration of this historic milestone, Board of Directors have recommended a Centenary issue of Bonus shares in the ratio of 1:1. In addition, Board has also proposed a Dividend, including a special Dividend, of Rs 10/- per share for the year ending 31st March, 2010.

Board of Directors

-Yogesh Chander Deveshwar, Vice President & Company Secretary -B B Chatterjee, Executive Director -Anup Singh, -Krishnamoorthy Vaidyanath -Kurush Noshir Grant Non Executive Directors - Anil Baijal -Shilabhadra Banerjee, -Angara Venkata Girija Kumar, -Serajul Haq Khan, -Sunil Behari Mathur,, -Pillappakkam Bahukutumbi Ramanujam,

-Hugo Geoffrey Powell - Basudeb Sen -Anthony Ruys, - Balakrishnan Vijayaraghavan,

Sustain ITCs position as one of Indias most valuable corporations through world class performance, creating growing value for the Indian economy and the Companys stakeholders.

To enhance the wealth generating capability of the enterprise in a globalising environment, delivering superior and sustainable stakeholder value.


Governance Structure
ITCs strategic thrust is founded on its ability to continuously invest in

existing and new capabilities. As a result, one of ITCs most important assets today is its pool of diverse core competencies residing in its various businesses. Accordingly, its governance structure has been designed to manage diversity, enabling it to pursue new avenues of growth without diluting focus on its existing lines of business.
Over time, these blended capabilities will, in turn, spawn newer

competencies which will impart a force multiplier to your Companys future growth potential.

Companies Share Capital

250,54,34,924 Ordinary Shares of the Company, representing 65.47% of the Company's paid up capital, as on 30th July, 2010 are in dematerialised form. The paid-up share capital of the Company, as on 30th July, 2010, is Rs. 382,67,01,530 (Rs.382.67 crores) divided into 382,67,01,530 Ordinary Shares of the face value of Re 1/- each. Total No. of Shareholders as on 30th July, 2010 ::3,61,735 No. of shareholders in dematerialised form ::3,16,442 No. of shareholders in physical form ::45,293

Financial Performance
In its 100th year, Company continues its impressive record of financial

Gross Turnover for the year grew by 13.5% to Rs. 26,259.60 crores. Net Turnover increased by 16.3 % to Rs.18,153.19 crores. Pre-tax profits rose by 24.7% to Rs. 6,015.31 crores Post-tax profits at Rs. 4,061 crores registered a growth of 24.4%. Earnings Per Share for the year stands at Rs. 10.73.

In 1996:
ITC had a Gross Income of Rs. 5,188 crores. In the last decade and a half, Gross Income

has risen to Rs. 26,863 crores. Profit After Tax has increased from a level of Rs. 261 crores to Rs. 4,061 crores. In terms of Market Capitalisation, Company was valued at Rs. 5,571 crores in 1996. This valuation now stands at Rs. 1,14,000 crores.

(Figures in Rs. Crores) *As at 19th July 2010

ITC : Financial Highlights 1996-2010*

March 31,1996 March 31, 2010

Gross Income Profit After Tax Return on Net Assets (%) Net Assets Employed Net Worth Market Capitalisation

5,188 261 28 1,886 1,121 5,571

26,863 4,061 41 14,957 14,064 1,14,000* 24.3 %

CAGR in Total Shareholder Returns in the period 1996-2010 :

Corporate Governance Report

ITCs Corporate Governance structure, systems and processes are based on two core principles: Management must have the executive freedom to drive the enterprise forward without undue restraints, This freedom of management should be exercised within a framework of effective accountability.

ITC believes that with the following of each of the below mentioned points creates the right corporate culture: Trusteeship Transparency Empowerment Control Ethical Corporate Citizenship

Directors Report

Auditors Report
Annexures contained the following points in the Auditors Report:

Fixed Assets Inventory Size of the Company and the nature of its business for the purchase of inventory, fixed assets and for the sale of goods and services Deposits accepted from the public Internal audit system Cost Records Statutory Dues Accumulated Losses Dues to Financial Institutions, Banks & Debenture Holders Security for Loans & Advances granted Special Statute Dealing/ Trading in Shares, Securities, Debentures and other Investments Guarantees given Term Loans

Auditors Report Contd..

Utilization of Funds Preferential Allotment of Shares Security for Debentures issued Public Issue of Equity Shares Fraud Noticed Balance Sheet as at 31st March, 2010. Profit & Loss Account for the year ended 31st March,2010. Cash Flow Statement for the year ended 31st March,2010. Schedule forming part of the Balance Sheet and the Profit & Loss Account. Balance Sheet Abstract and Companys general Business Profile. Auditors Report on Consolidated Financial Statements.

CEO & CFO Certification

Y. C. Deveshwar, Chairman and K. Vaidyanath, Executive Director, responsible for the finance function, certify that : We have reviewed the financial statements and cash flow statement for the year ended 31st March, 2010 and to the best of our knowledge and belief .
To the best of our knowledge and belief, no transactions entered into by the Company

during the year ended 31st March, 2010 are fraudulent, illegal or violative of the Companys code of conduct.
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.

ITC in its 100th year

Portfolio of products and services is represented by over 50 energetic

Brands in a range of more than 650 Stock Keeping Units (SKUs) ITCs products are today available in over 6 million retail outlets in the country. ITCs factories, hotels, R & D facilities, lifestyle retail outlets, e-Choupals, integrated rural service hubs and offices, taken together, are present in over 6500 locations in the country. Companys hotel chain comprises 4 brands, namely, ITC Hotels, Welcom Hotels, Fortune Hotels and Welcom Heritage Hotels. Together these represent nearly a 100 hotels in over 80 locations spread across the country. ITCs businesses export products to over 90 countries across the world. The ITC Groups dedicated human resource team is over 26,000. Companys e-Choupals benefit over 4 million farmers in nearly 40,000 villages. Company has helped create more than 20,000 rural women entrepreneurs

Future Prospects
ITC is today positioned in the frontline of some of the most promising businesses of tomorrow.
The Fast Moving Consumer Goods sector in India, in which ITC is a major player, is expected to triple in size to over Rs 3,55,000 crores by 2018. There is an investment opportunity for ITC of upto Rs. 8,000 crores over the next 7 to 10 years to drive growth in this sector. Indias consumption of Paper, Paperboards & Packaging is one of the lowest in the world. Per capita consumption is around 5 kilograms per person per year compared to nearly 300 kgs in US, 200 kgs in UK, and 45 kgs in China. There is an investment opportunity of upto Rs. 6,000 crores to secure growth for ITC. ITCs Hotels are at the vanguard of service excellence and are an embodiment of Responsible Luxury. As is well known, India is grossly under-roomed. International arrivals in India are only 5 million a year, compared to around 80 million in France, 58 million in the United States and 55 million in China. At conservative estimates, India needs 50,000 rooms in the next 2 to 3 years. This sector too carries an investment opportunity for ITC of upto Rs. 9,000 crores in the next 7 to 10 years to fuel its growth.

Awards & Accolades

ITC wins FICCI Award in recognition of Corporate initiative in

Industrial Relations. (1971) ITC Mughal wins Aga Khan Award for Architecture. (1980) ICRA assigns its first Corporate Governance Rating to ITC Limited. (2002) Inaugural World Business Award at Marrakesh for ITCs e-Choupal initiative. (2004) ITC - first Indian company and second in the world to win the Development Gateway Award for its trail-blazing e-Choupal initiative. (2005) ITC wins the prestigious Corporate Social Responsibility Award from The Energy and Resources Institute (TERI) for its e-Choupal initiative. (2005) ITC wins top UNIDO Award at the International Conference on Sharing Innovative Agribusiness Solutions at Cairo. (2008) ITC-Welcome group tops the Hewitt Best Employer in Asia (Hospitality) Study. (2008)

ITCs transformation is also evident in the pace of its growth over the years. In the first 50 years of its existence, ITCs Gross I. had touched Rs. 37 crores with a PAT of less than Rs. 1.5 crores. At the time of Companys Platinum Jubilee in 1985, Gross I. had risen to Rs. 812 crores with PAT at Rs. 8 crores. Since then, its Gross Income has multiplied to Rs. 26,863 crores, and Profit After Tax to Rs. 4,061 crores.