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SECTION: 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 the report of respective auditors of the subsidiary companies, associates, and joint ventures incorporated in India, we state that: (xxii) 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 Ind AS financial statements. As indicated in Note 29 (iii)(d) of the consolidated Ind AS 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. SECTION: Annexure 2 To the Independent Auditor’s Report of even date on the Consolidated Financial Statements of ITC Limited. SECTION: 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, 2024, 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. SECTION: 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. SECTION: Auditor’s Responsibility 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 were 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.
SECTION: 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. Pertains 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. ``` ``` SECTION: Internal Financial Controls Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. SECTION: 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. 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 may become inadequate due to changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. SECTION: Opinion In our opinion, the 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 were operating effectively as at March 31, 2024, 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. SECTION: 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, eight 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.
SECTION: Report Details For S R B C & CO LLP Chartered Accountants ICAI Firm Registration Number: 324982E / E300003 per Arvind Sethi Partner Place of Signature: Kolkata Membership Number: 89802 Date: May 23, 2024 UDIN: 24089802BKEJFF5612 ITC Limited REPORT AND ACCOUNTS 2024 339 SECTION: Ten Years at a Glance SECTION: Standalone Operating Results FY15 - FY24 Year ended 31st March, FY15, FY16, FY17, FY18, FY19, FY20, FY21, FY22, FY23, FY24 - Gross Sales Value (net of rebates & discounts): 57799, 60196, 64174, 67082, 75309, 76097, 74979, 90104, 106625, 108425 - Gross Revenue from sale of products & services: 49965, 51582, 55002, 43957, 45221, 46324, 48151, 59101, 69481, 69446 - Total Income: 51932, 53714, 57434, 46460, 48269, 49821, 51776, 62336, 72689, 73644 - EBITDA: 13474, 13715, 14578, 15541, 17306, 17904, 15523, 18934, 23944, 24479 - PBT: 13998, 14434, 15503, 16439, 18444, 19299, 17164, 19830, 24677, 26323 - Exceptional items: , , , 413, , (132), , 73, , (7), , - PBT after Exceptional Items: 13998, 14434, 15503, 16852, 18444, 19167, 17164, 19830, 24750, 26316 - Tax: 4390, 5106, 5302, 5628, 5980, 4031, 4133, 4772, 5997, 5894 - PAT: 9608, 9328, 10201, 11223, 12464, 15136, 13032, 15058, 18753, 20422 - Interim + Proposed Dividends: 6030, 8233, 6945, 7577, 8498, 12477, 13230, 14172, 19255, 17163 - Earnings Per Share, Actual (`): 12.05, 11.61, 8.43, 9.22, 10.19, 12.33, 10.59, 12.22, 15.15, 16.39 - Adjusted (`) @: 8.03, 7.74, 8.43, 9.22, 10.19, 12.33, 10.59, 12.22, 15.15, 16.39 - Dividend Per Share, Actual - Ordinary (`): 6.25, 6.50, 4.75, 5.15, 5.75, 10.15, 10.75, 11.50, 12.75, 13.75 - Actual - Special (`): , 2.00, , , , , , 2.75, , , , - Adjusted - Ordinary (`) @: 4.17, 4.33, 4.75, 5.15, 5.75, 10.15, 10.75, 11.50, 12.75, 13.75 - Adjusted - Special (`) @: , 1.33, , , , , , 2.75, , , , SECTION: 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: Financials for FY21 & FY22 were impacted by unprecedented disruptions in certain operating segments of the Company due to the COVID-19 pandemic. SECTION: Standalone Equity, Liabilities and Assets FY15 - FY24 As at 31st March, FY15, FY16, FY17, FY18, FY19, FY20, FY21, FY22, FY23, FY24 - Equity†, Share capital: 802, 805, 1215, 1220, 1226, 1229, 1231, 1232, 1243, 1248 - Other equity: 29934, 40851, 44126, 50180, 56724, 62800, 57774, 60168, 66351, 70985 - Shareholders’ funds (Net Worth): 30736, 41656, 45341, 51400, 57950, 64029, 59005, 61400, 67594, 72233 - Non-current liabilities, Borrowings: 39, 26, 18, 11, 8, 6, 5, 5, 3, 2 - Deferred tax liabilities (Net): 1632, 1867, 1872, 1918, 2044, 1618, 1728, 1667, 1621, 2084 - Non-current liabilities (others) ^: 108, 127, 155, 195, 174, 493, 669, 543, 628, 593 - Current liabilities, Borrowings &: 14, 16, 8, 7, 3, 2, …, 1, 1, 2 - Proposed dividend (including tax): 6030, , , , , , , , , , - Current liabilities (others) ^: 5637, 6339, 6822, 8850, 9619, 9087, 10173, 11477, 12415, 12414 - Total Equity and Liabilities: 44196, 50031, 54216, 62381, 69798, 75235, 71580, 75093, 82262, 87328 - 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 ^: 16293, 16430, 18417, 20592, 21888, 23298, 25521, 25688, 25871, 26830 - Non-current investments: 2442, 6853, 8486, 13494, 14071, 13456, 12937, 15657, 16364, 22822 - Non-current assets (others): 1506, 3515, 2776, 3792, 4269, 1974, 1306, 2806, 4824, 1605 - Current assets, Current investments: 5964, 6471, 10100, 9903, 12507, 17175, 14047, 11625, 16357, 11917 - Cash and cash equivalents and Other bank balances: 7589, 5639, 2747, 2595, 3769, 6843, 4002, 3878, 3831, 6218 - Current assets (others): 10402, 11123, 11690, 12005, 13294, 12489, 13767, 15439, 15015, 17936 - Total Assets: 44196, 50031, 54216, 62381, 69798, 75235, 71580, 75093, 82262, 87328 - Net Worth Per Share (`) §: 25.56, 34.51, 37.33, 42.12, 47.27, 52.09, 47.94, 49.82, 54.39, 57.86 $ FY16 to FY24 as per Ind AS; previous GAAP for FY15. † Equity includes impact of 1:2 Bonus Issue (` 403 Crores) in FY17.
^ 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 amendments to Schedule III to the Companies Act, 2013. § To facilitate like-to-like comparison, adjusted for 1:2 Bonus Issue in FY17. SECTION: REPORT AND ACCOUNTS 2024 9038603057799 9731629660196 SECTION: Financial Highlights Gross Sales Value, ₹ Crores, PAT, ₹ Crores - 1250, 5849, 75309 - 1247, 7760, 971284 - 1323, 0749, 7914728 - 1417, 2901, 0415994 - 1583, 7106, 62519123 - 1716, 3108, 42520967 SECTION: Segment Revenue - FMCG - Others FY, ₹ Crores - FY15: 8.03 - FY16: 12.96 - FY17: 85.01 - FY18: 7.74 - FY19: 30.69 - FY20: 285.22 - FY21: 21.60 - FY22: 8.43 - FY23: 265.10 - FY24: 15.72 SECTION: Segment EBITDA - FMCG - Others FY, ₹ Crores - FY15: 9.22 - FY16: 45.61 - FY17: 2236.21 - FY18: 10.19 - FY19: 688.12 - FY20: 4646.93 - FY21: 12.33 - FY22: 9141.51 - FY23: 10.15 - FY24: 10.75 SECTION: Dividend ₹ Crores, Earnings Per Share and Dividend Per Share, ₹ Per Share - 3418, Ordinary Dividend: 1937 - Special Dividend: , SECTION: 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 FY24 as per Ind AS; previous GAAP for FY15. SECTION: Business Responsibility SECTION: REPORT AND ACCOUNTS 2024 SECTION: and Sustainability Report SECTION: Glossary SECTION: SECTION A: GENERAL DISCLOSURES SECTION: I. Details of the Listed Entity: 1. Corporate Identity Number (CIN) of the Company: L16005WB1910PLC001985 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: enduringvalue@itc.in 7. Telephone: +91 33 2288 9371 8. Website: www.itcportal.com 9. Financial year for which reporting is being done: 2023-24 10. Name of the Stock Exchange(s) where shares are listed: National Stock Exchange of India Limited (‘NSE’), BSE Limited (‘BSE’), and The Calcutta Stock Exchange Limited (‘CSE’) 11. Paid-up capital: ₹1248.47 Crores (As on 31.03.2024) 12. Name and contact details of the person who may be contacted in case of any queries on the BRSR report: Ms. Madhulika Sharma CSO Madhulika.sharma@itc.in +91 33 2288 9371 13. Reporting boundary: The disclosures are on a standalone basis. This report is prepared on a standalone basis. The reporting boundary for the current year has been revised as compared to the previous year i.e. from consolidated basis to standalone basis for the environmental indicators presented in Principle 6 of the report. The change is not material. 14. Name of assurance provider: Messrs. KPMG Assurance and Consulting Services LLP 15. Type of assurance obtained: Reasonable Assurance for BRSR Core indicators SECTION: II. Products/Services ``` ``` SECTION: 16. Details of Business Activities (Accounting for 90% of the Entity’s Turnover) Main Activities: 1. FMCG: Cigarettes, Branded Packaged Foods (Staples & Meals, Snacks, Dairy & Beverages, Biscuits & Cakes, Chocolates, Coffee & Confectionery), Personal Care Products, Education and Stationery Products, Safety Matches and Agarbattis. % of Turnover: 44.06% 2. Hotels: Hoteliering. % of Turnover: 4.28% 3. Agri-Business: Agri-commodities such as wheat, rice, spices, coffee, soya, and leaf tobacco. % of Turnover: 12.12% 4. Paperboards, Paper & Packaging: Paperboards, Specialty Paper & Packaging including flexibles. % of Turnover: 9.41% --- SECTION: Business Responsibility and Sustainability Report --- SECTION: REPORT AND ACCOUNTS 2024 --- SECTION: 17. Products/Services Sold by the Entity (Accounting for 90% of the Entity’s Turnover) Products/Services Data: 1. Cigarettes: NIC Codes - 12003, 21002, 46307. % of Total Turnover: 44.06% 2. Others: Branded Packaged Foods, Education and Stationery Products, Personal Care Products, Safety Matches and Agarbattis. NIC Codes - 10202, 10304, 10308, 10501, 10504, 10509, 10611, 10613, 10616, 10712, 10732, 10733, 10739, 10740, 10750, 10792, 10795, 10798, 20231, 20233, 20234, 20236, 20237, 20239, 46411, 46491, 46496, 46497, 46909. % of Total Turnover: 30.13% 3. Hoteliering: NIC Codes - 55101, 56101, 56301, 74909, 47110, 47190, 68200, 77400, 79900, 96010, 96020, 96905, 94990, 49223. % of Total Turnover: 4.28% 4. Agri-commodities: NIC Codes - 12001, 10209, 10302, 10304, 10406, 10611, 10795, 46201, 46207, 46301, 46305, 46306, 47300, 47737, 71200. % of Total Turnover: 12.12% 5. Paperboards and Specialty Paper: NIC Codes - 17015, 17016, 17093, 17022, 17029, 22203. % of Total Turnover: 9.41% --- **SECTION: III.
Operations 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 the Company’s Report and Accounts 2024. --- SECTION: 18. Number of Locations Where Plants and/or Operations/Offices of the Entity Are Situated Locations Data: - National: 107 Plants, 52 Offices, Total: 159 - International: 0 Plants, 1 Office, Total: 1 --- SECTION: 19. Markets Served by the Entity a. Number of Locations - National (No. of States): 28 States and 7 Union Territories - International (No. of Countries): 105 Countries b. Contribution of Exports as a Percentage of Total Turnover: FY 2023-24: 9.11% c. Brief on Types of Customers: ITC is one of India’s foremost private sector companies and a diversified conglomerate with businesses spanning FMCG, Hotels, Paperboards, Paper & Packaging, Agri Businesses, and Information Technology. The Company operates across all three sectors of the economy – Agri, Manufacturing, and Services, covering B2C, B2B, and D2C segments. The Company’s portfolio includes over 25 world-class Indian brands, representing an annual consumer spend of over ₹32,000 crores and reaching over 250 million households in India. --- SECTION: IV. Employees 20. Details as at the End of Financial Year a. Employees and Workers (Including Differently Abled) Employees Data: 1. Permanent Employees: Total: 24,567, No. (B): 21,804, % (B/A): 89%, No. (C): 2,763, % (C/A): 11% 2. Other than Permanent Employees: Total: 30,679, No. (B): 25,729, % (B/A): 84%, No. (C): 4,950, % (C/A): 16% 3. Total Employees: Total: 55,246, No. (B): 47,533, % (B/A): 86%, No. (C): 7,713, % (C/A): 14% 4. Permanent Workers: Total: 12,745, No. (B): 11,966, % (B/A): 94%, No. (C): 779, % (C/A): 6% 5. Other than Permanent Workers: Total: 30,386, No. (B): 25,518, % (B/A): 84%, No. (C): 4,868, % (C/A): 16% 6. Total Workers: Total: 43,131, No. (B): 37,484, % (B/A): 87%, No. (C): 5,647, % (C/A): 13% Note: Definition of employee clustering is as under: - Permanent employees include permanent workers, management, and non-management staff. Workers are a subset of employees. - Other than Permanent Employees include Service Provider Personnel (SPP), Fixed Term Contract (FTC), and Fixed Term Retainer (FTR). - 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 Differently Abled Employees Data: 1. Permanent: Total: 44, No. (B): 37, % (B/A): 84%, No. (C): 7, % (C/A): 16% 2. Other than Permanent: Total: 458, No. (B): 360, % (B/A): 79%, No. (C): 98, % (C/A): 21% 3. Total Differently Abled Employees: Total: 502, No. (B): 397, % (B/A): 79%, No. (C): 105, % (C/A): 21% 4. Permanent Workers: Total: 40, No. (B): 33, % (B/A): 83%, No. (C): 7, % (C/A): 18% 5. Other than Permanent Workers: Total: 308, No. (B): 263, % (B/A): 85%, No. (C): 45, % (C/A): 15% 6. Total Differently Abled Workers: Total: 348, No. (B): 296, % (B/A): 85%, No. (C): 52, % (C/A): 15% --- SECTION: 21. Participation/Inclusion/Representation of Women Representation Data: - Board of Directors: Total: 16, No. and Percentage of Females: 3, 18.75% - Key Managerial Personnel: Total: 5, No. and Percentage of Females: 0, 0% --- SECTION: 22. Turnover Rate for Permanent Employees and Workers In FY 2023-24, the overall attrition across employees was 9%. Gender-wise attrition stood at 9% for male employees and 15% for female employees. Turnover Data: - FY 2023-24: - Permanent Employees: Male: 9%, Female: 15%, Total: 9% - Permanent Workers: Male: 5%, Female: 15%, Total: 5% --- SECTION: V. Holding, Subsidiary and Associate Companies (Including Joint Ventures) 23. Names of Holding/Subsidiary/Associate Companies/Joint Ventures (As on 31.03.2024) Companies Data: 1. ITC Infotech India Limited: Subsidiary, 100.00%, No 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. ITC Infotech de México, S.A. de C.V.: Subsidiary, 100.00%, No 10. ITC Infotech Arabia Limited: Subsidiary, 100.00%, No 11. Surya Nepal Private Limited: Subsidiary, 59.00%, No 12. Surya Nepal Ventures Private Limited: Subsidiary, 59.00%, No 13. Technico Agri Sciences Limited: Subsidiary, 100.00%, No 14. Technico Pty Limited: Subsidiary, 100.00%, No 15. Technico Technologies Inc.**: Subsidiary, 100.00%, No 16.
Technico Asia Holdings Pty Limited: Subsidiary, 100.00%, No 17. Technico Horticultural (Kunming) Co. Limited: Subsidiary, 100.00%, No 18. Srinivasa Resorts Limited: Subsidiary, 68.00%, No 19. Fortune Park Hotels Limited: Subsidiary, 100.00%, No 20. Landbase India Limited: Subsidiary, 100.00%, No 21. Bay Islands Hotels Limited: Subsidiary, 100.00%, No 22. WelcomHotels Lanka (Private) Limited: Subsidiary, 100.00%, No 23. Russell Credit Limited: Subsidiary, 100.00%, No 24. Greenacre Holdings Limited: Subsidiary, 100.00%, No 25. Wimco Limited: Subsidiary, 100.00%, No 26. Gold Flake Corporation Limited: Subsidiary, 100.00%, No 27. ITC Integrated Business Services Limited: Subsidiary, 100.00%, No 28. MRR Trading & Investment Company Limited: Subsidiary, 100.00%, No 29. North East Nutrients Private Limited: Subsidiary, 76.00%, No 30. Prag Agro Farm Limited: Subsidiary, 100.00%, No 31. Pavan Poplar Limited: Subsidiary, 100.00%, No 32. ITC IndiVision Limited: Subsidiary, 100.00%, No 33. ITC Fibre Innovations Limited: Subsidiary, 100.00%, No 34. ITC Hotels Limited: Subsidiary, 100.00%, No 35. Logix Developers Private Limited: Joint Venture, 27.90%, No 36. ITC Filtrona Limited: Joint Venture, 50.00%, No 37. Maharaja Heritage Resorts Limited: Joint Venture, 50.00%, No 38. Gujarat Hotels Limited: Associate, 45.78%, No 39. International Travel House Limited: Associate, 48.96%, No 40. Russell Investments Limited: Associate, 25.43%, No 41. Divya Management Limited: Associate, 33.33%, No 42. Antrang Finance Limited: Associate, 33.33%, No 43. ATC Limited: Associate, 47.50%, No 44. Delectable Technologies Private Limited: Associate, 39.32%, No 45. Mother Sparsh Baby Care Private Limited: Associate, 26.50%, No 46. Sproutlife Foods Private Limited: Associate, 44.74%, No --- SECTION: VI. CSR Details 1. Whether CSR is Applicable as per Section 135 of Companies Act, 2013: Yes 2. Turnover of the Company for the Year Ended 31st March, 2024: ₹69,446.20 crores 3. Net Worth of the Company as at 31st March, 2024: ₹69,035.30 crores --- SECTION: VII. Transparency and Disclosures Compliances 25. Complaints/Grievances on Any of the Principles (Principles 1 to 9) Under the National Guidelines on Responsible Business Conduct (NGRBC) Complaints Data: - Communities: Yes, 6 complaints, 6 pending - Investors and Shareholders: Yes, 0 complaints, 0 pending - Employees and Workers: Yes, 18 complaints, 1 pending - Customers: Yes, 21 complaints, 995 pending - Value Chain Partners: Yes, No complaints --- SECTION: Stakeholder Grievance Redressal Mechanism in Place Communities: ITC’s Social Investments Programme (SIP) team conducts annual community engagement to capture views, issues, complaints, and grievances of community members. During 2023-24, 42 community engagements were held across major states. --- SECTION: Investors and Shareholders The Company has an Investor Service Centre (ISC) registered with SEBI as Category II Share Transfer Agent. ISC has effective systems for prompt redressal of investor grievances. --- SECTION: Employees and Workers The Company seeks to address employee concerns through its Grievance Redressal Policy, ensuring open discussions on grievances related to human rights and labor practices. ``` ``` SECTION: Customer Engagement and Feedback Robust systems have been put in place across ITC Businesses to continuously engage with consumers for gathering feedback and addressing their concerns in a timely manner. A dedicated customer interactions team is in place to address any product-related queries or complaints. Several communication channels, such as email, telephone, and feedback forms, are provided to consumers. Additionally, the Company has an online reputation management team that interacts with consumers via social media channels and responds to their queries in real time. A Customer Relationship Management (CRM) platform has been implemented for capturing customer complaints, queries, feedback, and suggestions received across channels. The CRM platform also provides consumer insights for bringing about process-related changes and system enhancements to improve CSAT scores. Contact Information: - Customers can reach out to ITC via the following emails in the ITC Portal: - webmaster@itc.in - contactus@itc.in - itccares@itc.in - Customers can also raise their grievances via brand-specific websites. SECTION: Value Chain Partners As per the Company’s Code of Conduct for Suppliers and Service Providers, they are expected to report any actual or suspected breach of the Code to the concerned manager at ITC. Suppliers and Service Providers are encouraged to report any known or suspected improper behavior of ITC employees. Such reports are treated confidentially. SECTION: Overview of 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, and the approach to adapt or mitigate the risk along with its financial implications. SECTION: Business Responsibility Report and Accounts 2024 and Sustainability Report Meetings Data: \| S. No.
\| Material Issue \| Indicate whether Risk or Opportunity (R/O) \| Rationale for Identifying the Risk/Opportunity \| In case of Risk, Approach to Adapt or Mitigate \| Financial Implications of the Risk or Opportunity (Indicate Positive or Negative Implications) \| \|--------\|------------------------------\|---------------------------------------------\|------------------------------------------------\|------------------------------------------------\|-------------------------------------------------------------------------------------------------\| \| 1 \| Climate Change \| Risk \| Climate-related physical and transition risks may impact business operations, sourcing, supply chain, and increase compliance costs. \| - Risk Mitigation Strategy: Physical Risk Management: Usage of contemporary climate risk modeling tools for identifying high-risk/vulnerable sites and agri value chains, and undertaking detailed assessments for developing locally contextual adaptation plans, risk mitigation strategies, and measures for improving climate resilience. - Promotion of climate-smart agriculture and development of heat/drought-tolerant and high-yielding varieties to improve productivity by adopting micro-region-specific agronomic practices. \| - Potential impact: As average temperatures rise, extreme weather events are expected to grow in severity and frequency, significantly impacting the Company’s operations, physical assets, and agri value chains. These may lead to complete or partial outages of operations. Further, these events may adversely impact the availability and quality of agri raw materials, consequently affecting the production and sales of the Company’s products. - Vagaries of weather caused by climate change may impact crop cycles, output, and productivity, resulting in disruption of operations/supply chain. - Availability of water for operations and agri value chains may be adversely impacted by erratic precipitation patterns. - Transition risks associated with climate change may also impact the Company’s operations. \| SECTION: Business Responsibility and Sustainability Report SECTION: Report and Accounts 2024 Meetings Data: \| S. No. \| Material Issue \| Indicate Risk or Opportunity (R/O) \| Rationale for Identifying the Risk/Opportunity \| In case of Risk, Approach to Adapt or Mitigate \| Financial Implications of the Risk or Opportunity (Indicate Positive or Negative Implications) \| \|--------\|------------------------------\|-------------------------------------\|------------------------------------------------\|------------------------------------------------\|-------------------------------------------------------------------------------------------------\| \| 1 \| Water Stewardship \| Transition Risk \| Adoption of a water stewardship approach to achieve water security for all stakeholders within defined catchment areas of units located in high water stress areas. \| - Supply chain diversification and contingency planning. - Map risks arising from the climate crisis, build adaptive capacity, and invest in mitigative measures to strengthen resilience across the value chain. \| - 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 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 to evaluate potential environmental impacts of products during their entire lifecycle. \| SECTION: Business Responsibility Report and Accounts 2024 and Sustainability Report Meetings Data: \| S. No. \| Material Issue \| Indicate Risk or Opportunity (R/O) \| Rationale for Identifying the Risk/Opportunity \| In case of Risk, Approach to Adapt or Mitigate \| Financial Implications of the Risk or Opportunity (Indicate Positive or Negative Implications) \| \|--------\|------------------------------\|-------------------------------------\|------------------------------------------------\|------------------------------------------------\|-------------------------------------------------------------------------------------------------\| \| 2 \| Product and Plastic Packaging \| Risk \| Difficulty in complying with current or future regulations on plastic packaging and/or failure to meet commitments on packaging and the environment. \| - Going beyond compliance wherever possible: - Ensuring plastic neutrality ahead of regulatory targets through source segregation programs, creating replicable, scalable, and sustainable models of solid waste management, and developing viable recycling options for Multi-Layered Plastic (MLP) packaging. - Additionally, undertaking third-party assurance of underlying data related to plastic waste generation and collection. - Ensuring a robust compliance management system supported by internal and external process review. - Partnering with upstream players and suppliers for ensuring supply of recycled plastic for meeting regulatory/market demand for increasing recycled content in plastic packaging. - Harnessing the enterprise strengths of ITC in driving cutting-edge innovation to offer sustainable alternatives to single-use plastics. - Pursuing sustainable packaging initiatives like reduction in plastic packaging intensity and improving recyclability of plastic packaging. \| - Potential impact of non-compliance with plastic waste management regulations could lead to imposition of environmental compensation, negatively impacting the Company’s reputation. - Stricter government laws around usage of plastics, including bans, may give rise to multiple challenges such as redesign of product packaging, shelf life, and product distribution-related issues. - Disruptions in the supply chain for recycled plastic or plastic packaging substitutes as required by law could impact the Company’s ability to comply, produce, and distribute products. - Inability to provide sustainable alternatives could negatively impact consumer sentiment.
\| SECTION: Business Responsibility and Sustainability Report SECTION: Report and Accounts 2024 Meetings Data: \| S. No. \| Material Issue \| Indicate Risk or Opportunity (R/O) \| Rationale for Identifying the Risk/Opportunity \| In case of Risk, Approach to Adapt or Mitigate \| Financial Implications of the Risk or Opportunity (Indicate Positive or Negative Implications) \| \|--------\|------------------------------\|-------------------------------------\|------------------------------------------------\|------------------------------------------------\|-------------------------------------------------------------------------------------------------\| \| 3 \| Talent Management \| Risk \| Difficulty in attracting and retaining high-quality talent in a highly competitive market. \| - Strengthening and communicating ITC’s talent proposition about ‘Building Winning Businesses. Building Business Leaders. Creating Value for India’. - Providing meaningful and challenging roles that enrich individual capability and act as a powerful incentive to stay, learn, and grow. - Building a robust talent pipeline across responsibility levels through requisite quality in key roles, depth of bench, and reliable succession plans. - Investments in capability building of managers through access to the best-in-class upskilling programs and development interventions. - Recognizing and nurturing specialism so that employees who wish to focus on niche, business-critical skills can continue to grow in their area of expertise. - Benchmarking compensation to the relevant market periodically, ensuring strong alignment with short-term and long-term performance, particularly at senior levels and ring-fencing top talent. - Ensuring the talent quotient in the Company remains healthy and vibrant through annual segmentation supported by differential rewards and progression opportunities for industry-leading talent. - Energizing and nurturing pride in membership through frequent leadership outreach to managers. \| - Potential impact: Lack of requisite quality of management personnel could adversely affect business operations and long-term growth prospects. - Talent attrition beyond acceptable levels may impact the ability to effectively fulfill organizational goals and customer expectations. \| SECTION: Business Responsibility Report and Accounts 2024 and Sustainability Report SECTION: 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 to as P1-P9 as given below: \| Principle \| Description \| \|-----------\|-------------\| \| 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. \| SECTION: Disclosure Questions 1. a. Whether your entity’s policy/policies cover each principle and its core elements of the NGRBCs. (Yes/No) b. Has the policy been approved by the Board? (Yes/No) c. Web Link of the Policies, if available 2. Whether the entity has translated the policy into procedures. (Yes / No) 3. Do the enlisted policies extend to your value chain partners? (Yes/No) 4. Name of the national and international codes/certifications/labels/standards (e.g., Forest Stewardship Council, Fairtrade, Rainforest Alliance, Trustea) standards (e.g., SA 8000, OHSAS, ISO, BIS) adopted by your entity and mapped to each principle. \| Principle \| Policy and Management Processes \| \|-----------\|---------------------------------\| \| P1 \| Yes \| \| P2 \| Yes \| \| P3 \| Yes \| \| P4 \| Yes \| \| P5 \| Yes \| \| P6 \| Yes \| \| P7 \| Yes \| \| P8 \| Yes \| \| P9 \| Yes \| ITC has a comprehensive set of Board-approved Policies that cover NGRBC principles (P1 to P9) and the underlying core elements. To achieve its Sustainability 2.0 vision, the Company continues to strengthen its management approach, guided by a comprehensive set of Sustainability Policies implemented across the organization. The Company continues to strengthen mechanisms for engagement with key stakeholders, identification of material sustainability issues, and progressively monitoring and mitigating impacts along the value chain of each Business. 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 management teams.
Various committees designated with specific responsibilities have also been constituted for operationalizing these Policies. The Sustainability Compliance Review Committee, comprising senior members of management, has the overall responsibility to monitor and evaluate compliance with these Policies. The responsibility for implementing ITC’s CSR Policy rests with the Corporate Social Investments Programme (SIP) Team. SECTION: Specific Commitments, Goals, and Targets In line with its Sustainability 2.0 agenda, ITC has set short to medium targets for key priority areas like climate change, water stewardship, plastic waste and circular economy, sustainable agriculture, biodiversity conservation, and sustainable livelihoods. SECTION: Performance Against Commitments, Goals, and Targets To achieve these targets, all ITC Units have established management systems that entail regular monitoring of environmental KPIs, development of an environmental management plan, and reviewing progress regularly 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 the ‘Sustainability 2.0 Ambitions’ section of ITC Sustainability Report 2024. SECTION: Governance, Leadership, and Oversight Statement by Director Responsible for the Business Responsibility Report Please refer to the ‘Chairman’s Message’ section in ITC Sustainability Report 2024. Details of the Highest Authority Responsible for Implementation and Oversight of the Business Responsibility Policy The CSR and Sustainability Committee of the Board, chaired by the Chairman & Managing Director, reviews and oversees the implementation of the Sustainability Policies of the Company annually. In addition, the CSR and Sustainability Committee and the Board of Directors also review the progress of implementation of the Company’s CSR Programs on a half-yearly basis. Composition of the CSR and Sustainability Committee as of 31st March 2024: \| Sl. No. \| Name of the Director \| Designation/Nature of Directorship \| DIN of the Director \| \|---------\|----------------------\|-----------------------------------\|---------------------\| \| 1 \| S. Puri (Chairman of the Committee) \| Chairman & Managing Director \| 00280529 \| \| 2 \| M. Gupta \| Non-Executive Director \| 06638754 \| \| 3 \| R. Jain \| Non-Executive Director \| 07442202 \| \| 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 \| 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 CMC of the Company is the management body responsible for compliance with the Sustainability Policies of the Company. The CMC has constituted the 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 / SBUs, through members of the respective Management Committees, and Heads of Corporate Functions are responsible for ensuring the 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 CSO of the Company is 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 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 report-backs on the Company’s sustainability initiatives to the senior leadership of the Company. SECTION: Business Responsibility and Sustainability Report SECTION: Report and Accounts 2024 Details of Review of NGRBCs by the Company: \| Subject for Review \| Indicate whether review was undertaken by Director / Committee of the Board/ Any other Committee \| Frequency (Annually/Half-yearly/ Quarterly/Any other – please specify) \| \|--------------------\|------------------------------------------------\|------------------------------------------------\| \| Performance against above policies and follow-up action \| Any other Committee \| On a quarterly basis \| \| Compliance with statutory requirements of relevance to the principles, and rectification of any non-compliances \| Any other Committee \| On a quarterly basis \| The Company is in compliance with the applicable laws and regulations. Independent Assessment/Evaluation of Policies ITC has a robust review mechanism supported by both external and internal audits covering the implementation of key policies. ITC has been obtaining independent third-party assurance for its Sustainability Reports since 2004.
In the reporting year, the authenticity of the data and systems disclosed in the Sustainability Report 2024 has been assured by an independent third-party assurance provider; the assurance has been provided as per the International Standard for Assurance Engagements (ISAE) 3000 at the ‘Reasonable Assurance’ level. ``` ``` SECTION: Green House Gas (GHG) Inventory ITC has computed its Green House Gas (GHG) inventory, including GHG emissions, biogenic emissions, and GHG removals, in accordance with ISO 14064:2018. The GHG inventory of FY 2023-24 has been verified at the ‘Reasonable Assurance’ level by an independent third-party assurance provider. Relevant third-party assessments and certifications are conducted across Business Units periodically. SECTION: Business Responsibility REPORT AND ACCOUNTS 2024 and Sustainability Report SECTION: Section C: Principle-wise Performance Disclosure SECTION: Principle 1 Businesses should conduct and govern themselves with integrity, and in a manner that is ethical, transparent, and accountable. SECTION: Essential Indicator 1. Percentage coverage by training and awareness programmes on any of the principles during the financial year: - Segment: Board of Directors - Total Number of Training and Awareness Programmes Held: 5 - Topics/Principles covered under the Training and its Impact: The Directors are briefed on the sustainability initiatives of the Company from time to time. The Directors are also updated on changes/developments in the domestic/global corporate and industry scenario including those pertaining to statutes/legislation & economic environment and on matters affecting the Company, to enable them to take well-informed and timely decisions. During the financial year 2023-24, the Directors and KMP of the Company were briefed/updated on the following: - Overview of the Company’s businesses and ITC’s globally acknowledged sustainability initiatives provided to newly appointed Directors. - Review by the CSR and Sustainability Committee of the implementation of the Sustainability Policies, including framework and approach relating thereto. - CSR initiatives including the Company’s CSR Programmes and Sustainability 2.0 Vision & roadmap. - Strategy of Corporate Communications covering external stakeholders like media. - Periodic review of the Company’s businesses. - %age of Persons in Respective Category covered by the Awareness Programmes: 100% 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: - NGRBC Principle: Penalty/Fine - Name of the Regulatory/Enforcement Agencies/Judicial Institutions: Nil - Amount (In INR): Nil - Brief of the Case: Nil - Has an Appeal been preferred? (Yes/No): No SECTION: Business Responsibility and Sustainability Report SECTION: REPORT AND ACCOUNTS 2024 SECTION: Non-Monetary - NGRBC Principle: Imprisonment - Name of the Regulatory/Enforcement Agencies/Judicial Institutions: Nil - Brief of the Case: Nil - Has an Appeal been preferred? (Yes/No): No SECTION: 3. Appeal/Revision Details 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: Not applicable SECTION: 4. Anti-Corruption or Anti-Bribery Policy The Company’s Code of Conduct covers aspects relating to anti-corruption and anti-bribery. The ITC Code of Conduct can be accessed on the Company’s corporate website at [ITC Code of Conduct](https://www.itcportal.com/about-itc/values/index.aspx#sectionb5). SECTION: 5. Disciplinary Action Against Directors/KMPs/Employees/Workers - Number of Directors/KMPs/employees/workers against whom disciplinary action was taken by any law enforcement agency for the charges of bribery/corruption: - FY 2023-24: Directors: Nil, KMPs: Nil, Employees: Nil, Workers: Nil - FY 2022-23: Directors: Nil, KMPs: Nil, Employees: Nil, Workers: Nil SECTION: 6. Complaints Regarding Conflict of Interest - Number of complaints received in relation to issues of conflict of interest of the Directors: - FY 2023-24: Nil - FY 2022-23: Nil SECTION: 7. Corrective Action on Issues Related to Fines/Penalties 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. SECTION: 8. Accounts Payables - Number of days of accounts payables: - FY 2023-24: 43.50 - FY 2022-23: 40.60 SECTION: 9. Openness of Business Provide details of concentration of purchases and sales with trading houses, dealers, and related parties along with loans and advances & investments, with related parties: - Concentration of Purchases: - a. Purchases from trading houses as % of total purchases: 0.29% - b. Number of trading houses where purchases are made: 57 - c. Purchases from top 10 trading houses as % of total purchases from trading houses: 82.94% - Concentration of Sales: - a. Sales to dealers/distributors as % of total sales: 80.40% - b. Number of dealers/distributors to whom sales are made: 6718 - c.
Sales to top 10 dealers/distributors as % of total sales to dealers/distributors: 7.41% - Share of RPTs: - a. Purchases (Purchases with related parties/Total Purchases): 3.17% - b. Sales (Sales to related parties/Total Sales): 2.70% - c. Loans & advances (Loans & advances given to related parties/Total loans & advances): 0.96% - d. Investments (Investments in related parties/Total Investments made): 18.08% SECTION: Leadership Indicators SECTION: 1. Awareness Programmes Conducted for Value Chain Partners - Total number of awareness programmes held: 5 - Topics/principles covered under the training: - Environment, Social, Governance (ESG) Landscape: Global & Indian including National Guidelines on Responsible Business Conduct (NGRBC) Principles and SEBI’s BRSR Core Value Chain Reporting Requirements - Environmental Compliance - Fair Business Practices - Corporate Governance and Ethics - Occupational Health and Safety - Fair Labour Practices and Human Rights - %age of value chain partners covered (by value of business done with such partners) under the awareness programmes: 100% identified Critical Tier-1 value chain partners SECTION: 2. Conflict of Interests Management Does the entity have processes in place to avoid/manage conflict of interests involving members of the Board? Yes. The ITC Code of Conduct requires the Directors, Senior Management, and employees to avoid situations in which their personal interests could conflict with the interests of the Company. SECTION: Principle 2 Businesses should provide goods and services in a manner that is sustainable and safe. SECTION: Essential Indicators 1. Percentage of R&D and capital expenditure (capex) investments in specific technologies to improve the environmental and social impacts of product and processes to total R&D and capex investments made by the entity: - Specific R&D to total R&D: 13.3% - Specific Capex to total Capex: 30.0% SECTION: Note 1: R&D The Company’s state-of-the-art ITC Life Sciences and Technology Centre (LSTC) in Bengaluru is at the core of driving science-led product innovation to support and build ITC’s portfolio of world-class brands. SECTION: Note 2: Capex Investments Specific Capex includes investments in the areas of renewable energy, green buildings, energy-efficient equipment, pollution control equipment, water management, and treatment systems. SECTION: 2.a. Sustainable Sourcing Procedures Yes, there are procedures in place for sustainable sourcing. ITC has a Board approved Policy on ‘Sustainable Supply Chain and Responsible Sourcing’ and a ‘Code of Conduct for Suppliers and Service Providers’. SECTION: 2.b. Percentage of Inputs Sourced Sustainably ITC’s key agri value chains are certified as per global standards like Rainforest Alliance (RFA), Forest Stewardship Council®, Fairtrade, India Organic, USDA Organic, and Bio-Suisse. SECTION: 3. Product Reclamation Processes - Plastics: ITC first achieved Plastic Neutrality in FY 2021-22 by implementing an integrated solid waste management programme. - E-waste: Not applicable. - Hazardous waste: Not applicable. - Other waste: All ITC Units have established systems and procedures to ensure that waste is disposed of through authorised agencies in line with applicable regulations. SECTION: 4. Extended Producer Responsibility (EPR) Yes, ITC is in compliance with the requirements of Extended Producer Responsibility (EPR) under the Plastic Waste Management Rules, 2016 (as amended). SECTION: Leadership Indicators SECTION: 1. Life Cycle Perspective/Assessments (LCA) Has the entity conducted Life Cycle Perspective/Assessments (LCA) for any of its products or services? Yes. ``` ``` SECTION: Sustainability Strategy In line with the overall strategy to embed principles of sustainability into the various stages of product or service life cycle, ITC initiated Life Cycle Assessments (LCA) of its products and services in 2010. The objective was to evaluate the impacts and identify areas for improvement in the value chain. LCA studies have been carried out for some of the Company’s key products from Paperboards and Specialty Papers Business, Personal Care Products Business, Branded Packaged Foods Business, and Matches & Agarbattis Business to identify additional opportunities to reduce environmental impact across the value chain. These assessments have enabled the identification of concrete solutions towards more efficient packaging designs and loading efficiencies in transportation. Studies conducted on the selected products also provided valuable insights which are duly considered for new product development and design. Additionally, during the year, capacity building programmes were conducted for practitioners across ITC Businesses and LSTC to further strengthen the application of LCAs at the product design stage itself, including interventions related to using alternative raw materials/formulations, manufacturing processes, and minimizing use phase and end-of-life impacts.
SECTION: Details of LCAs done in the last two years Meetings Data: NIC code, Name of Product/Service, % of total turnover contributed, Boundary for which the Life Cycle Perspective/Assessment was conducted, Whether conducted by Independent External Agency, Results Communicated in Public Domain (Yes/No) If yes, Provide the web-link 46496, Classmate Notebook, -, Cradle-to-grave, Yes, No 20237, Savlon Powder Handwash, -, Cradle-to-grave, Yes, No 20237, Savlon Liquid Handwash, -, Cradle-to-grave, Yes, No 20239/46491, Nimyle Floor Cleaner, -, Cradle-to-gate, Yes, No 17016, CFKE Paperboard, -, Cradle-to-gate, Yes, No 17016, OmegaBev Vio Paperboard, -, Cradle-to-Gate with end-of-life, Yes, No 20238/46491, Mangaldeep Sandal Agarbatti, -, Cradle-to-Grave, Yes, No SECTION: Social and Environmental Concerns If there are any significant social or environmental concerns and/or risks arising from the 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. SECTION: Recycled or Reused Input Material 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 2023-24, the Kovai Unit of ITC’s Paperboards & Specialty Papers Business sourced nearly 89,000 tonnes of waste paper from external sources, which constituted over 71% of the Unit’s total input materials. Additionally, ITC continues to integrate recycled plastic content in packaging across its leading brands. Input Material Data: Indicate input material, Recycled or re-used input material to total material FY 2023-24, FY 2022-23 Waste Paper used in Kovai Mill, Recycled Paper used: ~ 89,000 tonnes, Recycled Paper used: ~ 84,000 tonnes Use of Recycled Plastic Content, Recycled plastic content used in packaging: ~ 170 tonnes, Recycled Plastic content used in packaging: ~ 98 tonnes SECTION: Business Responsibility and Sustainability Report Of the products and packaging reclaimed at the end of life of products, amount (in metric tonnes) reused, recycled, and safely disposed: During FY 2023-24, the Company collected and sustainably managed more than 70,000 tonnes of plastic waste across the Country. The amount of plastic waste managed exceeded the amount of plastic packaging utilized by ITC during the year, enabling the Company to sustain its plastic neutrality status for the third year in a row. Waste Management Data: FY 2023-24, Re-used, Recycled, Safely Disposed Plastics (including packaging), -, ~ 31,000 tonnes, ~39,000 tonnes FY 2022-23, -, ~ 27,500 tonnes, ~ 32,500 tonnes E-waste, NA, NA, NA Hazardous waste, NA, NA, NA Other waste, NA, NA, NA NA: Not applicable SECTION: Reclaimed Products and Packaging Materials Reclaimed products and their packaging materials (as percentage of products sold) for each product category. Please refer to responses to Questions 3 and 4 above. SECTION: Employee Well-being Measures Details of Measures for the Well-being of Employees: Category, Total (A), Health Insurance (B), Accident Insurance (C), Maternity Benefits (D), Paternity Benefits (E), Day Care Facilities (F) Permanent Employees, 21,804, 21,804 (100%), 21,804 (100%), NA, 10,324 (47%), - Female, 2,763, 2,763 (100%), 2,763 (100%), 2,763 (100%), NA, 2,763 (100%) Total, 24,567, 24,567 (100%), 24,567 (100%), 2,763 (100%), 10,324 (47%), 2,763 (100%) SECTION: Measures for the Well-being of Workers Category, Total (A), Health Insurance (B), Accident Insurance (C), Maternity Benefits (D), Paternity Benefits (E), Day Care Facilities (F) Permanent Workers, 11,966, 11,966 (100%), 11,966 (100%), NA, 486 (4%), - Female, 779, 779 (100%), 779 (100%), 779 (100%), NA, 779 (100%) Total, 12,745, 12,745 (100%), 12,745 (100%), 779 (100%), 486 (4%), 779 (100%) SECTION: Spending on Employee Well-being Spending on measures towards the well-being of employees and workers (including permanent and other than permanent) in the following format: FY 23-24, FY 22-23 Cost incurred on well-being measures as a % of total revenue of the company, 0.1%, 0.1% SECTION: Retirement Benefits Details of Retirement Benefits, for Current FY and Previous Financial Year: Benefits, No. of Employees Covered as a % of Total Employees, No. of Workers Covered as a % of Total Workers, Deducted and Deposited with the Authority (Y/N/N.A.) PF, 100%, 100%, Y, 100%, 100%, Y Gratuity, 100%, 100%, Y, 100%, 100%, Y ESI, 10%, 17%, Y, 12%, 20%, Y Others, please specify, NA, NA, NA, NA, NA, NA * Covers all eligible employees SECTION: Accessibility of Workplaces Are the premises/offices of the entity accessible to differently-abled employees and workers, as per the requirements of the Rights of Persons with Disabilities Act, 2016? If not, whether any steps are being taken by the entity in this regard.
As part of its commitment to enhancing diversity, ITC places particular emphasis on representation and inclusion of differently-abled persons. Most of the divisional head-quarters have enabling infrastructure such as: - Elevators enabled with Braille signages for persons with visual difficulty - Ramps, tactile pavers, and handrails to facilitate movement of persons with motor disability - Accessible parking places - Accessible washrooms SECTION: Equal Opportunity Policy 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 emphasizes the Company’s Zero Tolerance Policy on discrimination, inter alia, on the grounds of disability. The aforesaid Policy can be accessed at this link. SECTION: Return to Work and Retention Rates Return to work and Retention rates of permanent employees and workers that took parental leave: Gender, Permanent Employees Return to Work, Retention Rate, Permanent Workers Return to Work, Retention Rate Male, 100%, 87%, NA, NA Female, 100%, 93%, 100%, 92% Total, 100%, 88%, 100%, 92% SECTION: Grievance Mechanism Is there a mechanism available to receive and redress grievances for the following categories of employees and workers? If yes, give details of the mechanism in brief. Category, Yes/No (If Yes, then give details of the mechanism in brief) Permanent Workers, Yes, ITC’s Grievance Redressal Procedure is available to employees and workers. The objective of 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 available for the permanent employees. Other than Permanent Workers, The Whistleblower Policy of the Company encourages all employees to bring to the Company’s attention instances of illegal or unethical conduct, actual or suspected incidents of fraud, 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. SECTION: Membership in Associations or Unions Membership of employees and workers in association(s) or Unions recognised by the listed entity: Category, FY 2023-24, No. of Employees/ Workers in Respective Category, %, FY 2022-23, No. of Employees/ Workers in Respective Category, % Total Permanent Employees, 24,567, 10,372, 42%, 23,725, 10,222, 43% - Male, 21,804, 10,215, 47%, 21,337, 10,113, 47% - Female, 2,763, 157, 6%, 2,388, 109, 5% Total Permanent Workers, 12,745, 10,372, 81%, 12,602, 10,222, 81% - Male, 11,966, 10,215, 85%, 11,948, 10,113, 85% - Female, 779, 157, 20%, 654, 109, 17% *A vast majority of 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, and to ensure that employees are not discriminated against for exercising this freedom in a lawful manner and consistent with ITC’s core values.
SECTION: Training for Employees and Workers Details of training given to Employees and Workers: Category, Total (A), On Health and Safety Measures, On Skill Upgradation, Total (D), On Health and Safety Measures, On Skill Upgradation Employees, No., %, No., % Male, 21,804, 12,174, 56%, 21,337, 9,914, 46% Female, 2,763, 1,409, 51%, 2,388, 877, 37% Total, 24,567, 13,583, 55%, 23,725, 10,791, 45% Workers, No., %, No., % Male, 11,966, 9,007, 75%, 11,948, 6,832, 57% Female, 779, 685, 88%, 654, 524, 80% Total, 12,745, 9,692, 76%, 12,602, 7,356, 58% Note: The above includes formal Induction training upon 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. SECTION: Performance and Career Development Reviews Details of Performance and Career Development Reviews of Employees and Workers: Category, Current Financial Year, No. (B), % (B/A), Previous Financial Year, No. (D), % (D/C) Employees, Total (A), , , Total (C), , , Male, 21,804, 19,690, 90%, 21,337, 17,560, 82% Female, 2,763, 2,712, 98%, 2,388, 2,283, 96% Total, 24,567, 22,402, 91%, 23,725, 19,843, 84% Workers, Total (A), , , Total (C), , , Male, 11,966, 9,852, 82%, 11,948, 8,171, 68% Female, 779, 728, 93%, 654, 549, 84% Total, 12,745, 10,580, 83%, 12,602, 8,720, 69% SECTION: Health and Safety Management System Health and Safety Management System: a. Whether an Occupational Health and Safety Management System has been implemented by the Entity? Yes, ITC has implemented an occupational health and safety management system in all its Factories, Hotels, Offices, and Warehouses. ITC endeavours that Environment, Health & Safety (EHS) standards at all its units are ahead of applicable legislation and regulations, Standards and Codes, and are benchmarked against international best practices across sectors in which it operates. ITC’s approach to occupational health & safety standards is articulated in the Board approved Environment, Health and Safety Policy. It is based on an EHS management system that emphasizes enhancing EHS performance by setting objectives and targets and continually monitoring key performance indicators. Further, the Company promotes a culture of safety through behaviour change programmes and by providing appropriate training to employees as well as service providers’ employees, while continually investing in state-of-the-art technology and in developing human capital. EHS requirements are integrated at the design stage for all new investments. Compliance with EHS standards during the construction phase as well as in the operation phase of ITC units, Hotels, Warehouses, and Offices is ensured by implementing project EHS management systems and through established EHS management systems with designated roles and responsibilities for competent resources, respectively. b. What are the processes used to identify work-related hazards and assess risks on a routine and non-routine basis by the entity? ITC has identified the EHS Risk Management framework as one of the integral steps towards building a robust safety management system in all its factories, hotels, offices, and warehouses. This framework entails a set of processes for continual risk identification, assessment, and mitigation, with active participation of the workforce in each of its facilities. Shop floor processes in this regard include hazard spotting tours, suggestion schemes, daily briefings, and periodic EHS Committee meetings in which employees participate. In addition, all ITC Units undergo periodic Environment, Health & Safety audits at the Business as well as Corporate level which endeavours to identify additional latent risks besides verifying compliance with standards. Several national awards and certifications acknowledge ITC’s commitment and efforts towards providing a safe and healthy workplace to all. SECTION: Reporting Work-related Hazards Whether you have processes for workers to report the work-related hazards and to remove themselves from such risks. (Y/N) ``` ``` SECTION: Safety and Health Management A system is in place across ITC factories, hotels, and offices for workers to spot and report work-related hazards and offer suggestions for improvements. Necessary training is given to all employees in recognizing hazards and issues. Joint inspections by management representatives and employees on the shop floor are carried out at regular intervals, and respective corrective and preventive measures are undertaken to mitigate the identified risks. To create an open and transparent safety culture across ITC Units, employees are encouraged to participate and discuss safety-related issues in forums like periodic EHS Committee meetings and Departmental Open Forums. SECTION: Access to Medical and Healthcare Services **Do the employees/workers of the entity have access to non-occupational medical and healthcare services?
(Yes/No) Yes, permanent employees and their family members have access to the Company-provided or Company-supported medical benefits. Workers have access to medical benefits through Company-provided group insurance policies, Company-funded medical support, and where applicable, statutory benefits under the Employees’ State Insurance Act. SECTION: Details of Safety Related Incidents Safety Incident/Number** Category, FY 2023-24, FY 2022-23 Lost Time Injury Frequency Rate (LTIFR) (per one million-person hours worked) Employees: 0.05, 0.07 Workers: 0.09, 0.12 Total recordable work-related injuries Employees: 3, 4 Workers: 7, 8 No. of fatalities Employees: 0, 0 Workers: 0, 1 High consequence work-related injury or ill-health (excluding fatalities) Employees: 0, 0 Workers: 0, 1 Including the contract workforce. Note: For Question 11, Employees include only permanent employees, permanent workers, and other than permanent employees, whereas workers include only SPPs (Service Providers Personnel). Trainees/Apprentices not included. SECTION: Measures for a Safe and Healthy Workplace* In line with the Company’s Environment, Health and Safety Policy, safety as a value-led concept has been institutionalized by inculcating a sense of ownership at all levels and driving behavioral change, leading to the creation of a cohesive safety culture. ITC has put in place comprehensive health and safety protocols for the safety and well-being of its stakeholders. ITC endeavors that EHS standards at all its units are ahead of applicable legislations, regulations, and standards and codes, and are benchmarked against international best practices across the diverse sectors in which it operates. ITC continues to strengthen its safety processes, adopting globally recognized best practices, and ensuring that facilities are designed, constructed, operated, and maintained in an inherently safe manner. ITC will continue to undertake efforts for creating a safe working environment and a strong safety culture by: - Integrating safety at the design stage itself and ensuring it through design reviews, stage inspections, and pre-commissioning audits, thereby strengthening the engineering control measures through ‘design for safety’ principles. - Conducting pre-commissioning and periodic operational audits during construction and operational stages respectively. - Implementing behavior-based safety initiatives to facilitate engagement for collaborative work on improving safety performances. - Adoption of keystone behaviors by individual units to demonstrate collective commitment and create a shared vision of safety and discipline. SECTION: Business Responsibility and Sustainability Report REPORT AND ACCOUNTS 2024 - Embracing and leveraging the digital landscape for safety management systems. - Identifying solutions for strengthening the safety culture aligned with the goal of ‘Zero Accidents’. SECTION: Complaints by Employees and Workers Employees are encouraged to report work area-related safety issues through various programs like hazard identification processes, suggestion schemes, and EHS Committees. \| Filed during the Year \| Pending Resolution at the end of Year \| Remarks \| \|---\|---\|---\| \| Working Conditions \| 12 \| 1 \| \| Health & Safety \| 0 \| 0 \| SECTION: Assessments for the Year % of your plants and offices that were assessed (by entity or statutory authorities or third parties) Health and safety practices: 100% Working Conditions: 100% SECTION: Corrective Actions for Safety-Related Incidents 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 of Directors (quarterly). The learnings from all accidents are disseminated across the organization at periodic intervals and formal compliance obtained. SECTION: Leadership Indicators 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), who have been rehabilitated and placed in suitable employment or whose family members have been placed in suitable employment. \| Total no. of affected Employees/Workers \| No.
of Employees/Workers that are rehabilitated and placed in suitable employment or whose family members have been placed in suitable employment \| \|---\|---\| \| Employees \| 0 \| 0 \| \| Workers \| 0 \| 2 \| 0 \| 1 \| SECTION: Transition Assistance Programmes 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, as per requirements of the relevant statute. SECTION: Assessment of Value Chain Partners ITC’s Policy on Sustainable Supply Chain and Responsible Sourcing ensures integration of sustainability in its supply chains. ITC’s suppliers/value-chain partners are expected to adopt the principles enumerated in ITC’s Code of Conduct for Suppliers and Service Providers. 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 conducts third-party desktop assessments of its Critical Tier-1 suppliers which include key aspects on Occupational Health and Safety, amongst other assessment criteria. \| % of value chain partners (by value of business done with such partners) that were assessed \| Critical Tier-1 Suppliers \| Health and safety practices \| 40% \| Working Conditions \| \|---\|---\|---\|---\|---\| SECTION: Corrective Actions for 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. SECTION: Stakeholder Engagement 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 identifying and engaging with its key stakeholders across the value chain. ITC’s engagement approach is anchored on the principles of materiality, completeness, and responsiveness. The engagement approach takes into cognizance 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. Note: For details on ITC’s Process of Stakeholder Engagement, refer to ‘Stakeholder Engagement’ section of ITC Sustainability Report 2024. SECTION: Stakeholder Groups and Engagement Frequency \| Stakeholder Group \| Whether identified as Vulnerable & Marginalized Group (Yes/No) \| Channels of communication \| Frequency of engagement \| Purpose and scope of engagement including key topics and concerns raised during such engagement \| \|---\|---\|---\|---\|---\| \| Providers of financial capital \| No \| For more details on consultation mechanisms and key issues discussed with the stakeholder groups, refer to ‘Strengthening Relationships with All Stakeholders’ section of ITC Sustainability Report 2024 \| \| \| \| Government and regulatory authorities \| No \| \| \| \| \| Customers \| No \| \| \| \| \| Employees \| No \| \| \| \| \| Farmers \| Yes \| \| \| \| \| Value chain partners \| No \| \| \| \| \| Media \| No \| \| \| \| \| Civil Society \| No \| \| \| \| \| Local communities \| Yes \| \| \| \| SECTION: Consultation Processes with Stakeholders 1. Provide the processes for consultation between stakeholders and the Board on economic, environmental, and social topics or if consultation is delegated, how is feedback from such consultations provided to the Board. ITC believes that an effective stakeholder engagement process is necessary for achieving its sustainability goal of inclusive growth. In this context, the Company has laid down a four-layered mechanism to deal with the aspect of stakeholder engagement. The Board, through the CSR and Sustainability Committee, inter alia, reviews, monitors, and provides strategic direction to the Company’s CSR and sustainability practices towards fulfilling its Triple Bottom Line objectives. Half-yearly reports on the progress made by the Company in this regard are placed by the CMC before the CSR and Sustainability Committee.
The CMC in turn has constituted the Sustainability Compliance Review Committee (SCRC), comprising senior members of management, which evaluates and monitors compliance with the Policy formulated in this connection. The SCRC places a quarterly report on the subject before the CMC. The Company has a practice of periodically assessing employee engagement through a Company-wide survey. Since 2016, the Company has made a concerted effort to assess and improve engagement. The impact is visible in the consistent improvement of engagement over the years. 2. Whether stakeholder consultation is used to support the identification and management of environmental, and social topics (Yes/No). If so, provide details of instances as to how the inputs received from stakeholders on these topics were incorporated into policies and activities of the entity. Yes, the Company believes that an effective stakeholder engagement process is necessary for achieving its sustainability goal of inclusive growth. Accordingly, the Company anchors stakeholder engagement on the following principles: - Materiality – Prioritized consideration of the economic, environmental, and social impacts identified to be important to the stakeholders as well as the organization. - Completeness – Understanding key concerns of stakeholders and their expectations. - Responsiveness – Responding coherently and transparently to such issues and concerns. The Company has put in place systems and procedures to identify, prioritize, and address the needs and concerns of its stakeholders across Businesses and Units in a continuous, consistent, and systematic manner. It has implemented mechanisms to facilitate effective dialogues with all stakeholders across Businesses, identify material concerns, and their resolution in an equitable and transparent manner. These measures have helped the Company develop strong relationships, which have stood the test of time. SECTION: Examples of Stakeholder Input Incorporation 1. Investors: The Company engages extensively with the investor ecosystem i.e., analysts representing institutional equity investors, fund/portfolio managers in top FIIs, Domestic Mutual Funds, FPIs, Private Insurance Companies, etc. The Company hosted its second ‘Investor Day’ event for the investor community to provide deeper insights into ITC’s Corporate Strategy and operating segments including inter alia, the ‘ITC Next Strategy’ which incorporates Sustainability 2.0 as a significant strategic pillar of the organization. The event was hosted in hybrid mode with over 100 physical attendees and 400+ overall attendees. The Company continues to communicate quarterly performance takeaways through press releases and detailed Investor presentations along with post-result calls with analysts. Key highlights of the performance are also being shared with the shareholders by e-mail. The Investors section of the Company’s website is also being updated on an ongoing basis. The Company is well-recognized for its ESG credentials and is acknowledged as one of the pioneers of adopting the Triple Bottom Line philosophy in India. 2. Customers & Value Chain Partners: Customers, Consumers, and Value Chain Partners are some of ITC’s core stakeholders. Various tech-enabled avenues have been deployed to constantly receive feedback and ideas from these stakeholders. A specialized team, ‘Team Synthesis’, has progressively evolved from being a ‘Customer Interactions’ team to a ‘Customer Experience’ team to ‘Stakeholder Experience Team’, and now into a ‘Stakeholder Experience Management Team’. In its current avatar, in addition to keeping customer centricity as the base, SOPs and policies are designed and implemented in such a manner that the experience of all stakeholders is taken into equitable consideration. This has not just helped in achieving better experience for customers as well as the employees, but has also made every stakeholder accountable for the team’s and the organization’s growth. Rapidly evolving consumer needs are constantly being monitored through social listening, in-depth immersions, and are being carefully synthesized to transform into relevant solutions. A few key initiatives that demonstrate the above are: - The entire customer experience process has been incentivized for the associates, team leaders, as well as for the Quality Analysts (QAs) in such a manner that each month they accumulate certain points for their monthly performance based on objective and quantitative parameters. This has given the primary stakeholders (the associates) an opportunity to perform better. The parameters include factors like ideation (KAIZEN) and initiatives taken beyond tasks to improve the process continuously. - The scenarios related to matters like environment, product, packaging, ergonomics, quality engineering, etc. highlighted by the customers are answered as per the respective brand teams, and any new or unique scenario highlighted by the customers is shared with the respective stakeholders as a VOC (Voice of Customer). 3. Community: Presented ahead are some of the instances where inputs received from stakeholders were incorporated into interventions.
Core Area Perspective Plan (CAPP) is done in ITC’s catchments to understand the need of the communities and design the interventions based on that. A comprehensive community needs assessment was earlier undertaken in 2015-16 in ITC’s core areas, that is, factory and agri-catchments. Based on this, the CAPP 1.0 was developed. While we keep revisiting the needs, based on regular stakeholder engagements, CAPP 2.0 was taken up in FY 2021-22 which also focused on ITC’s core catchments across 21 factories and 7 agri locations. The objectives of CAPP 2.0 were: - Revisit coverage and community needs in the changed external context; - Assess reasons for not achieving the earlier planned outcomes (if any); - Re-strategize MSK themes and approach based on the findings. As a follow-up to the second CAPP 2.0 done in FY 2021-22, household surveys are conducted every year on a lower sample to re-assess and reaffirm the continued relevance of the needs identified and accordingly cognize for the same in the future plans. In FY 2023-24, over 6,000 households across 4 states were covered. Forming large-scale long-term partnerships with Government to amplify reach & scale is one of the core tenets of SIP’s implementation approach. In this case, stakeholder feedback was received through consultations and interactions and they were duly incorporated during renewal/extension of the partnership. During the year, some PPPs with government ended and discussions were initiated on what changes and additions need to be considered in the next phase of partnership. - In Madhya Pradesh: Climate Smart Village (CSV) programme is being implemented in 1,500 villages by ITC directly. Considering the need for replicating CSVs across the state, ITC organized field visits for the State Agricultural Department. Post visits, discussions were taken up on how the CSV model can be replicated by the Government. ITC presented its CSV approach to the Department’s state and district level officials. Post the meetings, an MoU was signed to replicate ITC’s CSV model in the entire state starting with six districts in Phase-1. The CSV approach will be replicated by the Government staff with ITC’s support for capability building. On-ground delivery of the programme has since been initiated. ``` ``` SECTION: Engagement in Andhra Pradesh ITC was working with Women Development and Child Welfare in the area of Early Childhood Education and Care (ECCE) in 13 districts. ITC trained Integrated Child Development Services (ICDS) Supervisors who cascaded the training to Anganwadi Sevikas. After successfully implementing the programme in 13 districts, it was decided to replicate the approach across the entire state. Accordingly, a MoU was signed with the Department during FY 2023-24 to expand the partnership statewide. SECTION: Engagement with Vulnerable/Marginalized Stakeholder Groups ITC’s SIP adopts a bottoms-up approach to identify and address the emerging needs of the community. Below are instances where community needs were addressed through modifications in ongoing programme components or by introducing new interventions: 1. Vocational Training for Unemployed Youth: ITC provides vocational training to unemployed youth from marginalized sections. In Pune, unemployed women from two villages faced high travel costs to the skill centre. In response, ITC established a temporary community-level vocational skilling centre in their villages, training 27 youth, including 20 women, in electrical trade. 2. Toilet Construction and ODF Status: In ITC catchments, toilets were constructed, and areas were declared Open Defecation Free (ODF). However, many earlier constructed toilets were single pit. The community expressed the need for double pit toilets to ensure usability. ITC collaborated with the local Swachh Bharat Mission team to help households retrofit their toilets, sustaining the ODF status. 3. Drought Support in Karnataka: ITC has partnered with the Watershed Development Department of Karnataka for drought-proofing. In response to severe drought in North Karnataka, ITC implemented drought support interventions in Balagavi, Kalaburagi, and Yadgir, providing irrigation support, liquid fertiliser application through drones, and fodder support to approximately 2,200 poor households. 4. Crop Residue Management in Punjab: Since 2018, ITC has implemented a Crop Residue Management programme in Kapurthala district to help farmers incorporate stubble into soil. Recognizing the need for options to sell stubble, ITC piloted a project with rural entrepreneurs, extending it to 73 entrepreneurs in 2023-24, handling 1,900 tons of residue for fodder and ethanol purposes. SECTION: Business Responsibility Report and Accounts 2024 SECTION: Principle 5 - Human Rights SECTION: Essential Indicators 1.
Training on Human Rights Issues: - Category: Employees - 2023-24: - Permanent: 24,567 (100%) - Other than Permanent: 30,679 (100%) - Total Employees: 55,246 (100%) - 2022-23: - Permanent: 23,725 (100%) - Other than Permanent: 26,099 (100%) - Total Employees: 49,824 (100%) 2. Minimum Wages Paid: - Category: Employees - 2023-24: - Permanent: 24,567 (310 equal to minimum wage, 1%) - Other than Permanent: 30,679 (10,963 equal to minimum wage, 36%) - 2022-23: - Permanent: 23,725 (41 equal to minimum wage, 0.2%) - Other than Permanent: 26,099 (8,819 equal to minimum wage, 34%) SECTION: Remuneration Details - Median Remuneration/Wages: - Category: - Male: 13 (1,100,000) - Female: 3 (1,075,000) - Key Managerial Personnel: 5 (8,257,940) - Workers: 11,966 (5,086,15) SECTION: Human Rights Commitment ITC has a long-standing commitment to human rights, reflected in its Code of Conduct. The Company has policies on human rights applicable to employees, suppliers, and service providers. These policies ensure adherence to applicable laws and uphold the spirit of human rights. SECTION: Grievance Redressal Mechanism ITC encourages amicable resolution of grievances through open-door practices. Employees can discuss grievances with their reporting authority or submit a Grievance Redressal Form to the HR Manager. The ITC Whistleblower Policy allows reporting of unethical conduct, ensuring investigations are conducted impartially. SECTION: Complaints Statistics - FY 2023-24: - Sexual Harassment: Filed: 5, Pending: 0 - Discrimination at Workplace: Filed: 0, Pending: 0 - Child Labour: Filed: 0, Pending: 0 - Forced Labour: Filed: 0, Pending: 0 SECTION: Mechanisms to Prevent Retaliation ITC maintains a workplace free from harassment, with zero tolerance for such conduct. Complainants are protected from retaliation, and committees are established to investigate complaints. SECTION: Human Rights in Business Agreements Yes, human rights requirements are included in business agreements and contracts, ensuring compliance with standards related to EHS, human rights, and labour practices. SECTION: Assessments Conducted - % of Plants and Offices Assessed: - Child Labour: 100% - Forced Labour: 100% - Sexual Harassment: 100% - Discrimination at Workplace: 100% SECTION: Corrective Actions Details of corrective actions taken to address significant risks/concerns are referenced in the response to Question 10 of Principle 5 under essential indicators. SECTION: Leadership Indicators 1. Business Process Modifications: ITC’s Code of Conduct covers human rights aspects and engages with stakeholders to support human rights and social development. 2. Human Rights Due Diligence: The scope includes manufacturing locations, hotels, offices, and value chain partners. 3. Accessibility for Differently Abled Visitors: The entity's premises are accessible as per the Rights of Persons with Disabilities Act, 2016. ``` ``` SECTION: Accessibility Most of our establishments are accessible to differently abled persons (including visitors), with facilities like Persons with Disabilities (PWD) friendly entrance, wheelchair, braille systems, and tactile pavers. Accessible washroom is available for the visitors. SECTION: 4. Details on assessment of value chain partners ITC’s Policy on Sustainable Supply Chain and Responsible Sourcing ensures integration of sustainability in its supply chains. ITC’s suppliers/value-chain partners are expected to adopt the principles enumerated in ITC’s Code of Conduct for Suppliers and Service Providers. 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. ITC periodically coordinates third-party Human Rights impact assessments for the tobacco farm supply chain. Additionally, ITC conducts third-party desktop assessments of its Critical Tier-1 suppliers, which include key aspects on Human Rights, Labour Rights, and Occupational Health and Safety, amongst other assessment criteria. For more details, refer to the response to Question 1 (Principle 5) under leadership indicators. SECTION: Value Chain Partners Assessment Data % of value chain partners (by value of business done with such partners) that were assessed: - Critical Tier-1 Suppliers - Sexual Harassment: 40% - Discrimination at workplace - Child Labour - Forced Labour/Involuntary Labour - Wages - Others – please specify 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 focused on working closely with the set of identified critical suppliers. SECTION: 5. Corrective Actions for Significant Risks/Concerns* Please refer to responses to Questions 1 and 4 of Principle 5 under Leadership Indicators. SECTION: Business Responsibility REPORT AND ACCOUNTS 2024 and Sustainability Report SECTION: Principle 6 Businesses should respect and make efforts to protect and restore the environment. SECTION: Essential Indicators **SECTION: 1.
Total Energy Consumption and Intensity** \| Parameter \| FY 2023-24 \| FY 2022-23 \| \|-----------\|-------------\|-------------\| \| From renewable sources \| \| \| \| Total electricity consumption (A) \| 1,083,968 \| \| \| Total fuel consumption (B) \| 11,910 \| 10,337 \| \| Energy consumption through other sources (C) \| 175 \| 189 \| \| Total energy consumed from renewable sources (A+B+C) \| 13,168 \| 11,494 \| \| From non-renewable sources \| \| \| \| Total electricity consumption (D) \| 1,011 \| 1,023 \| \| Total fuel consumption (E) \| 12,058 \| 14,234 \| \| Energy consumption through other sources (F) \| 0 \| 0 \| \| Total energy consumed from non-renewable sources (D+E+F) \| 13,069 \| 15,257 \| \| Total energy consumed (A+B+C+D+E+F) \| 26,237 \| 26,751 \| \| Energy intensity per rupee of turnover \| 374 \| 381 \| \| Energy intensity per rupee of turnover adjusted for PPP \| 856 \| 862 \| \| Energy intensity in terms of physical output* \| 23.01 \| 23.59 \| \| Energy intensity (optional) \| \| Since ITC is a conglomerate with multiple businesses wherein physical output is reported in different units of measurement, hence the data for energy intensity in terms of physical output (tonnes of production) is reported only for PSPD which accounts for more than 80% of ITC’s total energy consumption. For data of other Divisions, refer to the ‘Climate Change’ section of ITC’s Sustainability Report 2024. ITC’s energy consumption data has been assured at the ‘Reasonable Level’ by an independent third-party assurance provider. SECTION: 2. Designated Consumers under PAT Scheme* Does the entity have any sites/facilities identified as designated consumers (DCs) under the Performance, Achieve and Trade (PAT) Scheme of the Government of India? (Y/N) If yes, disclose whether targets set under the PAT scheme have been achieved. In case targets have not been achieved, provide the remedial action taken, if any. Three Units of ITC’s Paperboards and Speciality Papers Business and twelve Hotels of Hotels Business are covered under the PAT scheme. The details of Units under PAT scheme is available at https://beeindia.gov.in/en/programmesperform-achieve-trade/pat-notifications. ITC has made significant investments in reducing energy consumption, and accordingly, the performance of the Company’s Units covered far exceeds the energy efficiency targets fixed under the PAT scheme. The Bhadrachalam Unit is the first pulp and paper mill and the second unit in the country overall, to be rated GreenCo Platinum+ by CII, as part of the Green Company rating system. Note: Details of the energy efficiency initiatives measures implemented during the year are included in ‘Disclosure on Conservation of Energy and Technology Absorption’ section of the Report of the Board of Directors & Management Discussion and Analysis in ITC Report and Accounts 2024. SECTION: Business Responsibility and Sustainability Report SECTION: REPORT AND ACCOUNTS 2024 SECTION: 3. Water Disclosures \| Parameter \| FY 2023-24 \| FY 2022-23 \| \|-----------\|-------------\|-------------\| \| Water withdrawal by source (in million kilolitres) \| \| \| \| (i) Surface water \| 28.2 \| 27.2 \| \| (ii) Groundwater \| 5.2 \| 4.8 \| \| (iii) Third party water \| 1.7 \| 1.8 \| \| (iv) Seawater/desalinated water \| 0 \| 0 \| \| (v) Others \| 0 \| 0 \| \| Total volume of water withdrawal (in million kilolitres) \| 35.1 \| 33.8 \| \| Total volume of water consumption (in million kilolitres) \| 13.3 \| 13.8 \| \| Water intensity per rupee of turnover (in kilolitres/Crore INR) \| 189 \| 197 \| \| Water intensity per rupee of turnover adjusted for PPP (in kilolitres/Million USD) \| 433 \| 446 \| \| Water intensity in terms of physical output* (in kilolitres/tonne of production) \| 8.33 \| 8.87 \| *Since ITC is a conglomerate with multiple businesses wherein physical output is reported in different units of measurement, hence the data for water intensity in terms of physical output (tonnes of production) is reported only for PSPD which accounts for ~70% of ITC’s total water consumption. For data of other Divisions, refer to the ‘Water Security’ section of ITC’s Sustainability Report 2024. There is a reclassification of ‘Rainwater’ under ‘surface water’ and ‘externally supplied wastewater’ under ’third party’ for FY 2023 data, without any change in total water withdrawal. ITC’s water withdrawal and consumption data has been assured at the ‘Reasonable Level’ by an independent third-party assurance provider. 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. As on 31st March 2024, ITC’s watershed development projects covering over 1.6 million acres of land created a total rainwater harvesting potential (RWH) of nearly 55 million kl (cumulative), which is over four times the net water consumed by ITC’s operations. SECTION: 4. Water Discharged \| Parameter \| FY 2023-24 \| FY 2022-23 \| \|-----------\|-------------\|-------------\| \| Water discharge by destination and level of treatment (in million kilolitres) \| \| \| \| (i) To Surface water \| 11.5 \| 11.7 \| \| 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 \| \| With treatment – please specify level of treatment \| NA \| NA \| \| (iv) Sent to third-parties \| 10.4 \| 8.3 \| \| No treatment \| 0 \| 0 \| \| With treatment – please specify level of treatment \| Tertiary \| Tertiary \| \| Total water discharged (in million kilolitres) \| 21.9 \| 20.0 \| ITC’s water discharge data has been assured at the ‘Reasonable Level’ by an independent third-party assurance provider. SECTION: Business Responsibility REPORT AND ACCOUNTS 2024 and Sustainability Report SECTION: 5. Zero Liquid Discharge Mechanism 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 utilizing 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. 35 Units of ITC including 13 hotels have achieved zero effluent discharge. SECTION: 6. Air Emissions (Other than GHG emissions) \| Parameter \| Please specify unit \| FY 2023-24 \| FY 2022-23 \| \|-----------\|---------------------\|-------------\|-------------\| \| NOx \| Tonnes \| 2,345 \| 2,380 \| \| SOx \| Tonnes \| 2,390 \| 3,600 \| \| Particulate matter (PM) \| Tonnes \| 562 \| 705 \| \| Persistent organic pollutants (POP) \| NA \| NA \| NA \| \| Volatile Organic Compounds (VOC) \| NA \| NA \| NA \| \| Hazardous Air Pollutants (HAP)* \| Tonnes \| 8.4 \| 8 \| The data is for PSPD Bhadrachalam Unit’s Hydrogen Sulphide emissions (HS)2. SECTION: 7. Greenhouse Gas Emissions (Scope 1 and Scope 2)* \| Parameter \| Please specify unit \| FY 2023-24 \| FY 2022-23 \| \|-----------\|---------------------\|-------------\|-------------\| \| Total Scope 1 emissions \| kilo tonnes of CO2 equivalent \| 1,141 \| 1,350 \| \| Total Scope 2 emissions \| kilo tonnes of CO2 equivalent \| 231 \| 231 \| \| Total Scope 1 and Scope 2 emissions per rupee of turnover \| tonnes of CO2 equivalent/Crore INR \| 20 \| 22 \| \| Total Scope 1 and Scope 2 emission intensity per rupee of turnover adjusted for PPP \| tonnes of CO2 equivalent/Million USD \| 45 \| 51 \| \| Total Scope 1 and Scope 2 emission intensity in terms of physical output* \| tonnes of CO2 equivalent/tonne of production \| 1.10 \| 1.29 \| *Since ITC is a conglomerate with multiple businesses wherein physical output is reported in different units of measurement, hence the data for Scope 1 and Scope 2 emission intensity in terms of physical output (tonnes of production) is reported only for PSPD which accounts for more than 75% of ITC’s total Scope 1 and Scope 2 emissions. For data of other Divisions, refer to the ‘Climate Change’ section of ITC’s Sustainability Report 2024. ITC’s GHG emissions (Scope 1 and Scope 2) data has been assured at the ‘Reasonable Level’ by an independent third-party assurance provider. ITC’s PSPD has large-scale Farm Forestry programmes promoting sustainable forest management with the 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 2023-24, the Farm and Social Forestry programmes have together sequestered over 5.5 million tonnes of CO2. SECTION: 8. Projects Related to Reducing Greenhouse Gas Emission ITC has undertaken a target of 50% reduction in Specific GHG Emissions (% Reduction in Scope 1 & 2 emission per Unit of Production) by 2030 as part of its Sustainability 2.0 ambitions. Accordingly, actions are being undertaken to reduce greenhouse gas emissions by investing in energy efficiency and increasing the share of renewable energy. Energy efficiency: All ITC Units focus on energy efficiency through process improvements and investment in new technologies. Over the years, ITC has implemented measures like installation of Vapour Absorption Machines (VAM), Automation in tube cleaning system of Heating, Ventilation and Air Conditioning (HVAC), and installation of energy-efficient equipment such as chillers, AHUs, motors, fans, pumps, and agitators. In FY 2023-24, the investments in energy conservation equipment have resulted in energy savings of about 500 TJ, which is equivalent to over 50,000 tonnes of GHG emissions. In line with ITC’s focus on accelerating digitalisation across Businesses, ITC’s PSPD is implementing several transformative projects leveraging Industry 4.0 technologies across key business areas, to enhance productivity, reduce carbon footprint, achieve strategic cost efficiencies, and superior product performance. SECTION: Business Responsibility and Sustainability Report SECTION: REPORT AND ACCOUNTS 2024 SECTION: Renewable Energy ITC has invested in renewable energy projects, for both renewable electricity and renewable thermal requirements. ITC has invested in several solar electricity projects during the year. Augmentation of Renewable Energy assets with commissioning of two offsite solar power plants, of capacity 13.5 MW in Uttar Pradesh and 14.5 MW in Karnataka. With investments over the years, ITC has increased its renewable energy capacity to over 200 MW. Based on the investments in renewable electricity and renewable thermal projects, ITC has been able to increase its renewable energy share to 50%, seven years ahead of its 2030 target. SECTION: 9. Waste Management \| Parameter (in kilo tonnes) \| FY 2023-24 \| FY 2022-23 \| \|----------------------------\|-------------\|-------------\| \| Plastic waste (A)* \| - \| - \| \| E-waste (B) \| 0.09 \| 0.11 \| \| Bio-medical waste (C) \| 0.01 \| 0.01 \| \| Construction and demolition waste (D)# \| 12 \| 6 \| \| Battery waste (E) \| 0.13 \| 0.15 \| \| Radioactive waste (F) \| -** \| 0.001 \| \| Other Hazardous waste (G) \| 22 \| 18 \| \| Other Non-hazardous waste (H) \| 696 \| 682 \| \| Total (A+B+C+D+E+F+G+H) \| 730 \| 706 \| \| Waste intensity per rupee of turnover \| 10 \| 10 \| \| Waste intensity per rupee of turnover adjusted for PPP \| 24 \| 23 \| \| Waste intensity in terms of physical output& \| 0.64 \| 0.63 \| Plastic waste is reported under Non-hazardous waste. Insignificant quantity of radioactive waste was generated. Waste re-used is reported under waste recycled. SECTION: Construction and Demolition (C&D) Waste There is an increase in C&D waste on account of multiple new Projects being executed across ITC. &Since ITC is a conglomerate with multiple businesses wherein physical output is reported in different units of measurement, hence the data for waste intensity in terms of physical output (tonnes of production) is reported only for PSPD which accounts for more than 80% of ITC’s total waste generation. For data of other Divisions, refer to the ‘Towards Circularity’ section of ITC’s Sustainability Report 2024. ITC’s waste data has been assured at the ‘Reasonable Level’ by an independent third-party assurance provider. In FY 2023-24, ITC continued to recycle over 99% of waste from its operations. In addition to this, the Company’s PSPD recycled over 89,000 tonnes of externally sourced 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. SECTION: Business Responsibility REPORT AND ACCOUNTS 2024 and Sustainability Report SECTION: 10. Waste Management Practices ``` ``` SECTION: Waste Management Practices** The Company has initiated measures across Units to ensure waste minimisation, segregation of waste at source, and recycling. During the year, the recycling level reached over 99%. Additionally, over 89,000 tonnes of externally sourced waste paper was used as raw material during the year. ITC follows a proactive approach to manage hazardous chemicals by actively looking for alternatives, which not only helps keep its operations safe but also ensures the safest products for customers.
This approach is demonstrated in pioneering practices implemented by ITC, such as Elemental Chlorine Free (ECF) bleaching and ozone bleaching technology in India in its Paper Business, and switching from solvent-based inks to water-based ones in its Packaging and Printing Business. For more details, refer to the ‘Chemical Safety Management’ section of ITC Sustainability Report 2024. SECTION: Operations in Ecologically Sensitive Areas ITC’s existing operations/offices comply with applicable environmental regulations of the Country and operate as per Consent to Operate (CTO) conditions from the Central and State Pollution Control Boards in line with guidelines issued by the Ministry of Environment, Forest and Climate Change, Government of India. SECTION: Environmental Impact Assessments Details of environmental impact assessments of projects undertaken by the entity based on applicable laws in the current financial year: - Project Name: Proposed Mill Expansion Plan (MEP) to increase Paper/Board capacity at ITC Limited, PSPD Unit Bhadrachalam - EIA Notification No.: EIA Notification 2006 - Date: September 2023 - Conducted by independent external agency: Yes - Results communicated in public domain: Yes - Relevant Web link: Link SECTION: Compliance with Environmental Laws ITC’s existing operations/offices comply with applicable environmental regulations of the Country and operate as per CTO conditions from the Central and State Pollution Control Boards. SECTION: Leadership Indicators 1. Water Withdrawal, Consumption, and Discharge in Areas of Water Stress (in kilolitres) ITC has developed a 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 assessments for water stress sites are done periodically using the above assessment framework, and sites for interventions are prioritized based on stakeholder consultation and business needs. ITC’s water stewardship goals are available in the ‘Sustainability 2.0 Ambitions’ section of ITC Sustainability Report 2024. SECTION: Business Responsibility and Sustainability Report SECTION: REPORT AND ACCOUNTS 2024 SECTION: Water Withdrawal, Consumption, and Discharge Details For each facility/plant located in areas of water stress, provide the following information: - Name of the area: Kapurthala, Saharanpur, Ranjangaon, Kothagudem, Bengaluru, and Kovai - Nature of operations: Manufacture of FMCG products and Paperboards & Specialty Papers SECTION: Water Withdrawal, Consumption, and Discharge Data \| Parameter \| FY 2023-24 \| FY 2022-23 \| \|---\|---\|---\| \| Water withdrawal by source (in million kilolitres) \| \| \| \| (i) Surface water \| 28.1 \| 27.2 \| \| (ii) Groundwater \| 0.1 \| 0.1 \| \| (iii) Third party water \| 0.5 \| 0.5 \| \| (iv) Seawater/desalinated water \| 0 \| 0 \| \| (v) Others \| 0 \| 0 \| \| Total volume of water withdrawal (in million kilolitres) \| 28.7 \| 27.8 \| \| Total volume of water consumption (in million kilolitres) \| 8.4 \| 9.3 \| \| Water intensity per rupee of turnover (Water consumed/turnover) (in kilolitre/crore INR) \| 121 \| 132 \| \| Water discharge by destination and level of treatment (in million kilolitres) \| \| \| \| (i) Into Surface water \| 10.5 \| 10.7 \| \| No treatment \| 0 \| 0 \| \| With treatment – please specify level of treatment \| Secondary \| Secondary \| \| (ii) Into Groundwater \| 0 \| 0 \| \| No treatment \| NA \| NA \| \| With treatment – please specify level of treatment \| NA \| NA \| \| (iii) Into Seawater \| 0 \| 0 \| \| No treatment \| NA \| NA \| \| With treatment – please specify level of treatment \| NA \| NA \| \| (iv) Sent to third-parties \| 9.8 \| 7.7 \| \| No treatment \| 0 \| 0 \| \| With treatment – please specify level of treatment \| Tertiary \| Tertiary \| \| Total water discharged (in million kilolitres) \| 20.3 \| 18.5 \| ITC’s water withdrawal, discharge, and consumption data have been assured at the ‘Reasonable Level’ by an independent third-party assurance provider.
SECTION: Scope 3 Emissions & Intensity \| Parameter \| Unit \| FY 2023-24 \| FY 2022-23 \| \|---\|---\|---\|---\| \| Total Scope 3 emissions (Break-up of the GHG into CO2, CH4, N2O, HFCs, PFCs, SF6, NF3, if available) \| Kilo tonnes of CO2 equivalent \| 253 \| 295 \| \| Total Scope 3 emissions per rupee of turnover \| Tonnes of CO2 equivalent/crore INR \| 3.60 \| 4.21 \| \| Total Scope 3 emission intensity (optional) – the relevant metric may be selected by the entity \| - \| - \| - \| The scope of coverage for Scope 3 emissions is mentioned in the ‘Climate Change’ section of ITC Sustainability Report 2024. Note: The Scope 3 emission for FY 2023-24 has reduced due to lower exports of some Agri commodities and substituting imported raw materials with domestically sourced raw materials. SECTION: Business Responsibility and Sustainability Report SECTION: Impact on Biodiversity With respect to the ecologically sensitive areas reported at Question 11 of Essential Indicators above, provide details of significant direct & indirect impact of the entity on biodiversity in such areas along with prevention and remediation activities. For details on the Company’s approach to Biodiversity Management, refer to the ‘Biodiversity Management’ section of ITC Sustainability Report 2024. SECTION: Resource Efficiency Initiatives If the entity has undertaken any specific initiatives or used innovative technology or solutions to improve resource efficiency or reduce impact due to emissions/effluent discharge/waste generated, please provide details of the same as well as the outcome of such initiatives. The Company has undertaken a number of initiatives and deployed innovative technologies across its operations for improving resource efficiency and minimizing environmental impact. For details, refer to ‘Disclosure on Conservation of Energy and Technology Absorption’ forming part of the Report of the Board of Directors & Management Discussion and Analysis in ITC Report and Accounts 2024, and ‘Climate Change’, ‘Water Security’, ‘Towards Circularity’, ‘Chemical Safety Management’, and ‘Air Emissions Management’ sections of ITC Sustainability Report 2024. SECTION: Business Continuity and Disaster Management Plan Yes, all Businesses in ITC have Business Continuity Plans duly approved by the Management Committee of the respective Businesses. Such Business Continuity Plans have been made comprehensive to include all facets of operations and are being tested at pre-determined intervals. SECTION: Environmental Impact Mitigation Measures Disclose any significant adverse impact to the environment arising from the value chain of the entity. ITC has a Board-approved Policy on ‘Sustainable Supply Chain and Responsible Sourcing’ and a ‘Code of Conduct for Suppliers and Service Providers’. The Code is shared and accepted by supply chain partners and service providers. ITC has a robust process of evaluating its Suppliers and Service Providers before engaging with them, proactively making them aware of its expectations/requirements, and seeking commitment for compliance through contractual agreements. Additionally, ITC facilitates its value chain partners in handling any adverse impacts. For example, managing hazardous chemicals is not only important within ITC factories but also in the supply chain. Within the supply chain, farmers working with hazardous pesticides is an area of special attention. ITC’s approach is to eliminate or reduce the use of hazardous pesticides. Intensive training is conducted on Integrated Pest Management (IPM), which helps adopt a holistic approach in reducing pesticide usage as well as substituting such pesticides with nature-based solutions. The training programmes also cover the safe handling of pesticides used and the responsible management of waste generated. SECTION: Value Chain Partners Assessment Percentage of value chain partners (by value of business done with such partners) that were assessed for environmental impacts. Key value chain partners like third-party manufacturers are encouraged to adopt management practices detailed under International Standards such as ISO 9001, ISO 14001, OHSAS 18001, and ITC’s Environment, Health and Safety (EHS) Guidelines. Contract manufacturing agreements also include aspects of EHS. Systems are in place for monitoring and reporting on key Third-Party Manufacturers’ (TPMs) environmental performance, including energy, water, and waste management. ITC’s leading Agri value chains are assessed for certification standards such as Forest Stewardship Council® (FSC)®, Rainforest Alliance, Sustainable Tobacco Programme (STP 2.0), G.A.P., etc. These standards, among others, also include environmental criteria. Additionally, ITC conducts third-party assessment of its Critical Tier-1 suppliers on an ongoing basis, and this assessment covers key aspects of environmental compliance and management practices. 40% of ITC’s Critical Tier-1 suppliers have been assessed so far. SECTION: Public Policy Advocacy Businesses, when engaging in influencing public and regulatory policy, should do so in a manner that is responsible and transparent.
ITC’s Policy on Responsible Advocacy 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. SECTION: Trade and Industry Affiliations \| S. No. \| Name of the trade and industry chambers/associations \| Reach of trade and industry chambers/associations \| \|---\|---\|---\| \| 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 & Agriculture \| State \| \| 7 \| PHD Chamber of Commerce & Industry \| National \| \| 8 \| Bombay Management Association \| State \| \| 9 \| Federation of Indian Chambers of Commerce & Industry \| National \| \| 10 \| Retailers Association of India \| National \| SECTION: Anti-Competitive Conduct The Company has not engaged in any anti-competitive conduct. SECTION: Public Policy Positions Advocated \| S. No. \| Public Policy Advocated \| Method Resorted for such Advocacy \| Whether Information Available in Public Domain? \| Frequency of Review by Board \| Web Link, if available \| \|---\|---\|---\|---\|---\|---\| \| 1 \| The Company’s Policy on Responsible Advocacy approved by the Board provides the framework for necessary interface with Government/Regulatory Authorities on matters concerning various sectors in which the Company operates. \| The Company works with apex industry institutions that are engaged in policy advocacy, like the Confederation of Indian Industry, Federation of Indian Chambers of Commerce & Industry, Associated Chambers of Commerce and Industry of India, and various other forums including regional Chambers of Commerce. \| For more details, refer to ‘Report of the Board of Directors & Management Discussion and Analysis’ section forming part of ITC’s Report and Accounts 2024. \| Annually \| - \| SECTION: Inclusive Growth and Equitable Development Businesses should promote inclusive growth and equitable development. SECTION: Social Impact Assessments 1. Details of Social Impact Assessments (SIA) of projects undertaken by the entity based on applicable laws in the current financial year: - Name and Brief Details of Project: 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 Project for which R&R is ongoing \| State \| District \| No. of Project Affected Families (PAFs) \| % of PAFs covered by R&R \| Amount paid to PAFs in the FY (In INR) - Not Applicable 3. Describe the mechanisms to receive and redress grievances of the community. ITC’s Social Investments Programme (SIP) adopts a bottom-up approach by keeping community needs and priorities as the key driver of all its interventions. Detailed and structured community engagements are planned every 4-5 years to revisit the changing needs of the community and the emerging priorities which feed into designing new interventions and re-designing ongoing and new programmes. Regular community interactions are undertaken by the internal state-level programme teams and the implementing partners to discuss, identify, and address any issues, complaints, and grievances of the community members pertaining to the interventions of the Social Investments Programme. SIP has also formalised and internalised the process of undertaking and recording such community interactions in line with the new SEBI requirements on Business Responsibility and Sustainability Reporting. During 2023-24, 42 such community engagements were held across all major states where SIP programmes are implemented. 6 grievances (mainly as requests for further interventions and scope of improvement) were reported. The SIP state teams have taken cognisance of all the relevant concerns, and applicable actions have been incorporated in plans for the upcoming year. 4. Percentage of input material (inputs to total inputs by value) sourced from suppliers: - FY 2023-24 \| FY 2022-23 - Directly sourced from MSMEs/small producers: 24.99% \| 17.65% - Directly from within India: 92.41% \| 91.64% 5.
Job creation in smaller towns – Disclose wages paid to persons employed (including employees or workers employed on a permanent or non-permanent/on contract basis) in the following locations, as % of total wage cost: - Location \| FY 2023-24 \| FY 2022-23 - Rural: 10% \| 11% - Semi-urban: 15% \| 15% - Urban: 17% \| 17% - Metropolitan: 58% \| 57% SECTION: CSR Projects in Aspirational Districts 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 \| 1,082.08 \| \| Uttarakhand \| Haridwar \| 592.00 \| \| Madhya Pradesh \| Vidisha \| 266.60 \| \| Assam \| Darrang \| 241.12 \| \| Odisha \| Malkangiri \| 226.34 \| \| Rajasthan \| Baran \| 212.73 \| \| Rajasthan \| Jaisalmer \| 195.77 \| \| Bihar \| Begusarai \| 125.11 \| \| Haryana \| Nuh \| 121.16 \| \| Karnataka \| Yadgir \| 92.23 \| \| Chhattisgarh \| Sukma \| 89.85 \| \| Madhya Pradesh \| Damoh \| 86.35 \| \| Multiple* (12 States) \| Multiple* \| 974.19 \| Spends in balance 50 Aspirational Districts of the total 62 where ITC had CSR projects. SECTION: Preferential Procurement Policy* Do you have a preferential procurement policy where you give preference to purchase from suppliers comprising marginalized/vulnerable groups? (Yes/No): ``` ``` SECTION: Policy on Sustainable Supply Chain and Responsible Sourcing The Board approved Policy on Sustainable Supply Chain and Responsible Sourcing defines the supply chain partners, which includes farmers. ITC is committed to collaborating with farmers to make them more sustainable and help build their adaptive capacity and resilience to emerging risks like climate change, water stress, and other extreme weather events. ITC is also raising awareness and working with farmers on crop quality, safety, protection, integrity, and traceability, as applicable. SECTION: Procurement from Marginalized/Vulnerable Groups Farmers, including women farmers and small landholders, have been identified as marginalized/vulnerable groups. SECTION: Percentage of Total Procurement by Value During FY 2023-24, ITC consumed over 2.4 million tonnes of agri raw materials, which is nearly 72% of overall raw materials’ consumption. SECTION: Benefits Derived from Intellectual Properties Not Applicable. SECTION: Corrective Actions on Intellectual Property Disputes Not Applicable. SECTION: Details of Beneficiaries of CSR Projects In the social sector, the two most important stakeholders of ITC are: - Rural communities with whom the Company’s Agri-Businesses have forged long and enduring partnerships. - Communities residing in close proximity to our manufacturing units, situated in urban and semi-rural locations. SECTION: Business Responsibility and Sustainability Report The beneficiaries of ITC’s CSR programmes mostly belong to the underprivileged sections of society and small & marginal farmers who face the challenges of securing sustainable livelihoods. These challenges are addressed through the Two Horizon approach of making today’s dominant source(s) of livelihoods sustainable and strengthening capabilities for tomorrow. The Two Horizon strategy ensures an integrated approach to development involving several interventions. SECTION: CSR Projects Beneficiaries Data \| CSR Projects \| No. Of Beneficiaries From CSR Projects (2023-24) \| % Of Beneficiaries From Vulnerable And Marginalised Groups \| \|--------------\|--------------------------------------------------\|-----------------------------------------------------------\| \| Climate Smart Agriculture \| 10.50 Lakhs \| SC / ST – 19%; Female – 19% \| \| Natural Resources Management - Water Stewardship \| 60,600 \| SC / ST – 11%; Female – 22% \| \| On-Farm Livelihood Diversification - Social Forestry \| 10,800 \| SC / ST – 34%; Female – 28% \| \| Off-Farm Livelihood Diversification - Improved Animal Husbandry Practices \| 2.33 Lakhs \| SC / ST – 19%; Female – 40% \| \| Support to Education \| 4.10 Lakhs \| Children – 100%; ~50% Girl Children \| \| Skilling of Youth \| 12,500* \| SC / ST – 31%; Female – 49% \| \| Improving Health & Sanitation - Household Sanitation \| 6,600 \| - \| \| Improving Health & Sanitation - Waste Management \| 25 Lakhs \| - \| \| Improving Health & Sanitation - Mother and Child Health and Nutrition \| 14.61 Lakhs \| - \| \| Women Empowerment \| 8.17 Lakhs** \| SC / ST – 5% \| * Includes 1,300 candidates who were trained through other centres after mobilisation by ITC. Includes Self Help Group (SHG) members and Financial Literacy programme SHG members. SECTION: Exclusions** Excludes farmers covered under NITI Aayog partnership programme or any other PPPs.
SECTION: 2030 Targets for Key Initiatives \| Objective \| Initiatives \| UoM \| Target 2030 \| Achieved till FY 2023-24 \| \|-----------\|-------------\|-----\|-------------\|--------------------------\| \| Horizon I - Sustainable Livelihoods Today \| Climate Smart Agriculture \| Lakh Acres \| 40 \| 27.94 \| \| Climate Smart Village Area (Sub-part of above) \| Lakh Acres \| 30 \| 19 \| \| Natural Resources Management to conserve and replenish natural resources critical for agriculture \| Lakh Acres \| 22 \| 16.38 \| \| Water harvesting structures (including ground water recharge structures) \| Nos. \| 50,000 \| 32,400 \| SECTION: Business Responsibility and Sustainability Report \| Objective \| Initiatives \| UoM \| Target 2030 \| Achieved till FY 2023-24 \| \|-----------\|-------------\|-----\|-------------\|--------------------------\| \| Storage Potential \| Million KL \| 60 \| 54.26 \| \| Crop Water Use Efficiency \| Million KL \| 2,000 \| 1,090 \| \| Bio-Diversity Conservation \| Lakh Acres \| 10 \| 4.70 \| \| Livelihood Diversification to improve incomes and de-risk livelihoods from climate change \| On-farm livelihood Diversification – Social Forestry \| Lakh Acres \| 6.30 \| 4.90 \| \| Off-farm livelihood diversification - Improved Animal Husbandry Practices \| Household Coverage \| 10 \| 7 \| \| Institutional Support for risk mitigation and reduction of costs of cultivation \| Link farmers with Government programmes \| No. of Linkages \| 50 \| 24.75 \| \| Agri Business Centres \| Nos. \| 2,000 \| 1,158 \| \| Farmer Producer Organisations \| Nos. \| 4,000 \| 1,660 \| SECTION: Horizon II - Creating Capabilities for Tomorrow \| Objective \| Initiatives \| UoM \| Target 2030 \| Achieved till FY 2023-24 \| \|-----------\|-------------\|-----\|-------------\|--------------------------\| \| Support to Education for improving quality of education and creating conducive learning environment \| Improvement in learning outcomes – Children covered \| No. in Lakhs \| 20 \| 15.31 \| \| Infrastructure support to Government Schools and Anganwadis \| Nos. \| 4,000 \| 3,914 \| \| Skilling of youth for enabling livelihood and employability \| Vocational Training – Youth trained \| No. in Lakhs \| 2.25 \| 1.12 \| \| Provide access to sanitation and waste management services to improve habitats \| Improving Health & Sanitation - Household Toilets constructed \| Nos. \| 40,000 \| 43,804 \| \| Improving Health & Sanitation - Waste Management (SWM) \| No. of Households \| 75 \| 50.59 \| \| Provide healthcare and nutrition services to women and children \| Beneficiaries covered under Maternal Child Health & Nutrition programme \| Nos. in Lakhs \| 15 \| 14.61 \| \| Empowering women for reduction in economic and social discrimination \| Women covered through livelihood and other microenterprises \| Nos. in Lakhs \| 2.50 \| 1.92 \| SECTION: Business Responsibility and Sustainability Report SECTION: Principle 9 Businesses should engage with and provide value to their consumers in a responsible manner. SECTION: Essential Indicators 1. Consumer Complaints Mechanism: A well-established system continues to be 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. The Company’s Businesses have a dedicated consumer response cell to respond to their queries and receive feedback on products to continuously improve upon its products and services. 2. Turnover of Products/Services: All products/services of the Company contain relevant information as required under applicable laws. 3. Number of Consumer Complaints: \| Category \| FY 2023-24 \| Remarks \| FY 2022-23 \| Remarks \| \|----------\|------------\|---------\|------------\|---------\| \| Data privacy \| 0 \| - \| 0 \| - \| \| Advertising \| 15 \| 1 \| 13 \| 0 \| \| Cyber-security \| 0 \| - \| 0 \| - \| \| Delivery of essential Services* \| 591 \| 135 \| 521 \| 0 \| \| Restrictive Trade Practices* \| 967 \| 38 \| 726 \| 0 \| \| Unfair Trade Practices* \| 28 \| 8 \| 13 \| 0 \| \| Others* \| 20 \| 394 \| 1,829 \| 17 \| 573 \| 1,648 \| Definition of complaints under various categories is given below. SECTION: Category* - Delivery of Essential Services - Restrictive Trade Practices - Unfair Trade Practices - Others SECTION: Product Recalls on Safety Issues \| Number \| Reasons for recall \| \|--------\|--------------------\| \| Voluntary Recalls \| Nil \| \| Forced Recalls \| Nil \| SECTION: Cyber Security Framework A Cyber Security Committee, led by the Chief Information Officer (CIO), is established to focus specifically on cyber security risks.
Its primary responsibility is to monitor emerging practices and technologies and provide recommendations to enhance the security of the organisation’s IT systems and infrastructure. The Chief Information Security Officer (CISO) ensures that the cyber security systems remain effective and up-to-date. SECTION: Corrective Actions on Advertising and Essential Services Robust systems have been put in place to identify the issues faced by consumers and ensure timely resolution. Efforts are in place to continually strengthen the quality assurance system and improve delivery timelines. SECTION: Data Breaches Information - a. Number of instances of data breaches: Nil - b. Percentage of data breaches involving personally identifiable information of customers: Nil - c. Impact, if any, of the data breaches: Nil SECTION: Leadership Indicators 1. Channels for Product Information: \| 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 Brands \| https://www.itcportal.com/brands-microsite/default.aspx \| \| Bingo! on Instagram \| https://www.instagram.com/bingo_snacks/ \| \| YiPPee! on Instagram \| https://www.instagram.com/sunfeast_yippee/ \| \| Aashirvaad on Instagram \| https://www.instagram.com/aashirvaad/ \| \| Sunfeast Dark Fantasy on Instagram \| https://www.instagram.com/sunfeastdarkfantasy/ \| \| Mom’s Magic on Instagram \| https://instagram.com/sfmomsmagic/ \| \| Classmate on Instagram \| https://instagram.com/classmatebyitc/ \| \| ITC: Creating Enduring Value for India \| https://youtu.be/VwnE4eN_BTk \| 2. Consumer Education on Safe Usage: All Businesses of the Company comply with the regulations and relevant voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship. The Company’s communications are aimed at enabling consumers to make informed purchase decisions. 3. Mechanisms for Disruption Notification: The Company is not engaged in providing essential services. However, necessary mechanisms are in place to inform consumers if any major discontinuation happens in relation to its products and services. 4. Product Information Display: ITC’s Businesses have an established system for monitoring customer satisfaction and ensuring that their feedback is addressed systematically. SECTION: Independent Practitioners’ Reasonable Assurance Report To the Directors of ITC Limited, Assurance report on the sustainability disclosures in the Business Responsibility and Sustainability Reporting (BRSR) Core attributes of ITC Limited for the period 1 April 2023 to 31 March 2024. SECTION: Opinion We have performed a reasonable assurance engagement on whether the Company’s sustainability disclosures in the Identified Sustainability Information for the period 1 April 2023 to 31 March 2024 has been prepared in accordance with the reporting criteria. SECTION: Basis for Opinion We conducted our engagement in accordance with International Standard on Assurance Engagements (ISAE) 3000 (Revised). Our responsibilities under those standards are further described in the “Our responsibilities” section of our report. SECTION: Other Information Management and the Board of Directors are responsible for the other information. The other information comprises the information included in the Company’s Annual Report. SECTION: Other Matter The BRSR for the period from 1 April 2022 to 31 March 2023 was not subject to limited/reasonable assurance engagement. SECTION: Intended Use or Purpose ``` ``` SECTION: Introduction The ISI and our reasonable assurance report are intended for users who have reasonable knowledge of the BRSR Core attributes, the reporting criteria, and ISI. Users should have read the information in the ISI with reasonable diligence and understand that the ISI is prepared and assured at appropriate levels of materiality. Our opinion is not modified in respect of this matter. SECTION: Responsibilities for the identified Sustainability Information (ISI) The management of the Company acknowledges and understands their responsibility for: - Designing, implementing, and maintaining internal controls relevant to the preparation of the ISI that is free from material misstatement, whether due to fraud or error. - Selecting or establishing suitable criteria for preparing the ISI, taking into account applicable laws and regulations related to reporting on the ISI, identification of key aspects, engagement with stakeholders, content, preparation, and presentation of the ISI in accordance with the reporting criteria. - Disclosure of the applicable criteria used for preparation of the ISI in the relevant report/statement. - Preparing/properly calculating the ISI in accordance with the reporting criteria. - Ensuring the reporting criteria is available for the intended users with relevant explanation. - Establishing targets, goals, and other performance measures, and implementing actions to achieve such targets, goals, and performance measures. - Providing details of the management personnel who take ownership of the ISI disclosed in the report. - Ensuring compliance with law, regulation, or applicable contracts. - Making judgments and estimates that are reasonable in the circumstances. - Identifying and describing any inherent limitations in the measurement or evaluation of information subject to assurance in accordance with the reporting criteria.
- Preventing and detecting fraud. - Selecting the content of the ISI, including identifying and engaging with intended users to understand their information needs. - Informing us of other information that will be included with the ISI. - Supervising other staff involved in the preparation of the ISI. Those charged with governance are responsible for overseeing the reporting process for the Company’s ISI. SECTION: Inherent limitations in preparing the ISI The preparation of the Company’s BRSR information requires the management to establish or interpret the criteria, make determinations about the relevancy of information to be included, and make estimates and assumptions that affect the reported information. Measurement of certain amounts and BRSR Core metrics, some of which are estimates, is subject to substantial inherent measurement uncertainty, for example, GHG emissions, water footprint, energy footprint. Obtaining sufficient appropriate evidence to support our opinion/conclusion does not reduce the uncertainty in the amounts and metrics. SECTION: Our responsibilities - Planning and performing the engagement to obtain reasonable assurance on the sustainability disclosures in the BRSR Core that are free from material misstatement, whether due to fraud or error, in accordance with the Reporting Criteria. - Forming an independent opinion based on the procedures we have performed and the evidence we have obtained. - Reporting our reasonable assurance opinion to the Directors of ITC Limited. SECTION: Exclusions Our assurance scope excludes the following and therefore we will not express a conclusion on the same: - Operations of the Company other than those mentioned in the “Scope of Assurance”. - Aspects of the BRSR and the data/information (qualitative or quantitative) other than the ISI. - Data and information outside the defined reporting period, i.e., from 1 April 2023 to 31 March 2024. - Statements that describe expression of opinion, belief, aspiration, expectation, aim, or future intentions provided by the Company. SECTION: Summary of the work we performed as the basis for our conclusion We exercised professional judgment and maintained professional skepticism throughout the engagement. We designed and performed our procedures to obtain evidence that is sufficient and appropriate to provide a basis for our reasonable assurance opinion. The nature, timing, and extent of the procedures selected depended on our judgment, including an assessment of the risks of material misstatement of the information subject to reasonable assurance, whether due to fraud or error. We identified and assessed the risks of material misstatement through understanding the information subject to reasonable assurance and the engagement circumstances. We also obtained an understanding of the internal control relevant to the information subject to reasonable assurance in order to design procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of internal controls. In carrying out our engagement, we: - Assessed the suitability of the criteria used by the Company in preparing the reasonable assurance information. - Evaluated the appropriateness of reporting policies, quantification methods, and models used in the preparation of the information subject to reasonable assurance and the reasonableness of estimates made by the Company. - Performed substantive testing of data related to ISI, limited to 20 operational locations of the Company. - Evaluated the overall presentation of the information subject to reasonable assurance. SECTION: Business Responsibility and Sustainability Report SECTION: REPORT AND ACCOUNTS 2024 SECTION: Annexure – 1 SECTION: BRSR Core attributes \| BRSR Indicator \| Type of Assurance \| \|----------------\|-------------------\| \| P1 E8 - Number of days of accounts payable \| Reasonable \| \| P1 E9 - Concentration of purchases & sales done with trading houses, related parties Loans and advances & investments with related parties \| Reasonable \| \| P3 E1c - Spending on measures towards well-being of employees and workers – cost incurred as a % of total revenue of the company \| Reasonable \| \| P3 E11 - Details of safety related incidents including lost time injury frequency rate, recordable work-related injuries, no.
of fatalities \| Reasonable \| \| P5 E3b - Gross wages paid to females as % of wages paid \| Reasonable \| \| P5 E7 - Complaints filed under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, including complaints reported, complaints as a % of female employees, and complaints upheld \| Reasonable \| \| P6 E1 - Details of total energy consumption (in Joules or multiples) and energy intensity \| Reasonable \| \| P6 E3 - Provide details of the following disclosures related to water: water withdrawal by source, volume of water consumption, water intensity metrics \| Reasonable \| \| P6 E4 - Provide the following details of water discharged: water discharge by destination and level of treatment \| Reasonable \| \| P6 E7 - Provide details of greenhouse gas emissions (Scope 1 and Scope 2 emissions) & its intensity \| Reasonable \| \| P6 E9 - Provide details related to waste management by the entity \| Reasonable \| \| P8 E4 - Input material sourced from the following sources as % of total purchases Directly sourced from MSMEs/small producers and from within India \| Reasonable \| \| P8 E5 - Job creation in smaller towns \| Reasonable \| \| P9 E7 - Instances involving loss/breach of data of customers as a percentage of total data breaches or cybersecurity events \| Reasonable \| SECTION: ITC Infotech's "ORBITNEXT" with Blazeclan ITC Infotech signed a definitive agreement to acquire 100% shareholding of Blazeclan Technologies Private Limited – a born-in-the-cloud consulting company providing Cloud services on AWS, Azure, and GCP. The acquisition reiterates the company’s commitment to help clients steer their digital transformation journey and deliver business outcomes built on the foundation of strong Cloud capabilities. SECTION: Sustained momentum of capability-led growth and differentiation FY 2023-24 marked the sustained growth and global expansion of ITC Infotech, through capability-led strategic partnerships with key clients, towards the next orbit of its growth and differentiation. ITC Infotech stayed relevant to the evolving business priorities of its clients by jointly investing in their growth and transformation agendas. SECTION: We Enhanced the Portfolio of Differentiated Capabilities ITC Infotech’s portfolio of client and industry-focused capabilities includes Data & Analytics, Direct to Consumer (D2C), Open Hospitality (Hotels-in-a-Box), PLM-led Digital Thread Solutions, Digital Manufacturing, SAP S/4 HANA, and Cloud, amongst others. The company continued to invest in institutionalizing delivery excellence and building focused capabilities to drive client relevance, scale, and differentiation. The company remained committed to pursuing inorganic opportunities in strategic priority areas to augment and scale its portfolio of capabilities. SECTION: Our Capabilities Received Sustained Recognition from Analysts ITC Infotech's investments in building technology-led solutions and offerings in future-focused capabilities were acknowledged in global benchmarking reports across analyst firms. The company was recognized as ‘Disruptor’ across several Avasant RadarViewTM service provider benchmarking reports, including ‘Digital CX Services’, ‘Data Management and Advanced Analytics’, ‘Manufacturing Smart Industry’, ‘Internet of Things’, ‘End-user Computing’, ‘Digital Workplace’, and ‘Intelligent Automation’. The company was recognized as ‘Disruptor’ by HfS in ‘Horizons: Retail and CPG Service Providers, 2023’. The company received two ISG ‘Star of ExcellenceTM’ Awards in the categories of ‘Universal ISV/Cloud Vendor Ecosystem’ and ‘Industry Award for CPG + Retail’. SECTION: Focus on Large Deals enabled our Global Expansion ITC Infotech’s focus on large deals, including the Strategic Partner Agreement with PTC Inc. in FY 2022-23 to start a new Service Line, ‘DxP Services’; and the multi-year, multi-million deal in FY 2023-24 from an existing marquee client, enabled it to strengthen its portfolio of capabilities, bolster its mid-term revenue growth, and enabled its global expansion. SECTION: View of Our Expanded Global Footprint To support the growing business and client requirements, during the year, ITC Infotech expanded its global footprint by setting up new subsidiaries in Mexico and Saudi Arabia as well as a new Branch in British Columbia (Canada). SECTION: Employee-centricity is at the Core of our Strategy ITC Infotech sustained its investments in attracting, training, and retaining high-quality talent, particularly in niche and future-focused technologies to support the evolving business priorities of its clients and to help them succeed in the global technology landscape. The company strengthened its employee-centric and high-performance work culture through a comprehensive employee value proposition which drives holistic well-being and growth. The company continued to build leadership strength through curated leadership development programs and strengthened employee competencies through domain & technology-led training and career development programs.
SECTION: Reinforcement of our Commitment to Sustainability ITC Infotech strengthened its Environment Social & Governance (ESG) framework through a structured materiality assessment, aligned to its client, employee, and industry requirements. The company charted out a comprehensive multi-year blueprint, leveraging best-in-class peer and industry benchmarks in ESG. SECTION: Creating Enduring Institutions SECTION: CII-ITC Centre of Excellence for Sustainable Development To ensure wider adoption of the ‘Triple Bottom Line’ philosophy across the Industry, your Company established the ‘CII – ITC Centre of Excellence for Sustainable Development’ (CESD) in 2006 in collaboration with the Confederation of Indian Industry (CII). The Centre continues to focus on its endeavor to promote sustainable business practices amongst Indian enterprises. The major highlights during the year include the following: SECTION: Climate Change - An initiative of the Centre, the CII Climate Action Charter (CCAC) provides a platform for Indian businesses to map Climate Change as a material risk across value chains and develop long-term actions to build resilience. Currently, the Charter has more than 300 signatories from across industry sectors. - The Centre launched the “Industry’s Priorities for COP28, Dubai: Indian Industry Perspective Report” during the Round Table on ‘Decentralised Renewable Energy (DRE) for SDG7: Powering livelihoods with clean energy’ on December 4, 2023, organized by the Centre, Ministry of New and Renewable Energy (MNRE), and International Solar Alliance (ISA). - In collaboration with MoEF&CC, the Centre actively contributed to the formulation of the National Inventory of Greenhouse Gases related to the Industrial Processes and Product Use (IPPU) sector. This collaborative effort was part of India’s Third National Communications (NATCOM) to the United Nations Framework Convention on Climate Change (UNFCCC). - The Centre led efforts to frame a policy paper under the B20 Taskforce on Energy, Climate Change, and Resource Efficiency. The paper was finalized through consultations and shared with the G20 representatives for consideration. 160+ members shared their suggestions for the policy paper. The Taskforce also developed a policy brief on Decarbonisation of Emerging G20 Countries. - During the B20 Summit 2023, 2 sessions on Environment, Social and Governance (ESG) were organized by the Centre including a session on ‘Sustainability & Development Imperatives and the Role of Standards’. The session highlighted the need for sustainability reporting for companies with a simple, clearly defined sustainability standard, ensuring that standards, KPIs, thresholds, and ratings consider applicability, relevance, and prioritization of the Global South. The Centre also released the Policy Paper under B20 India Action Council on ESG in Business emphasizing the imperative for convergence on ESG standards and underscoring the role of the private sector in driving these transformations. SECTION: ITC Sangeet Research Academy ITC envisioned that the Company could play a major role in the preservation and propagation of India’s rich musical heritage. The ITC Sangeet Research Academy (ITC SRA) was established in 1977 as an independent Public Charitable Trust with the aim of dissemination of knowledge in traditional forms and techniques of Hindustani classical music. ITC SRA is an embodiment of your company’s sustained commitment to a priceless national heritage. ITC SRA’s driving force is enduring excellence in the education of Hindustani classical Music. The methodology of training is based on the age-old principles of ‘Guru Shishya Parampara’. The Academy is modeled as a professionally-run institution that epitomizes the teaching of Hindustani Raga music. Through its eminent Gurus, it imparts intensive training and quality education in Hindustani classical music to its Scholars. The present Gurus of the Academy are Padma Bhushan Pandit Ajoy Chakrabarty, Padmashri Pandit Ulhas Kashalkar, Pandit Partha Chatterjee, Pandit Uday Bhawalkar, Vidushi Subhra Guha, Shri Omkar Dadarkar, Shri Abir Hossain, and Shri Brajeswar Mukherjee. The focus of the Academy remains the nurturing of exceptionally gifted students carefully hand-picked from across India, who receive full scholarships to reside and pursue music education in the Academy’s campus and in other designated locations under the tutelage of the country’s most distinguished musicians. The Scholars of the Academy have excelled in many ways, receiving national scholarships given by both the Ministry of Human Resources and the Ministry of Culture, Government of India, and qualifying for other prestigious awards and accolades. They perform in very well-attended music festivals organized by the Academy in Kolkata, including the prestigious ITC Sangeet Sammelan. Additionally, through collaborations with organizers all over the country, the Academy presents its Scholars and young musicians in ITC Mini Sangeet Sammelans, concerts, and Baithaks in cities like Kanpur, Chennai, Vadodara, Ahmedabad, Dehradun, etc., enabling the Academy to fulfill its avowed objective of preserving and propagating Hindustani Classical Music.
The objective of ITC SRA is to create the next generation of masters of Hindustani Classical Music for the continued propagation of a priceless legacy. SECTION: Awards & Accolades SECTION: Major Awards & Certifications 2023-2024 - Mr. Sanjiv Puri, Chairman & Managing Director, was honoured with the ‘Business Leader of the Year Award’ by the All India Management Association. - Mr. Sanjiv Puri, Chairman & Managing Director, was conferred the Best CEO Award in the ‘Large Companies’ category by Business Today. - Mr. Sanjiv Puri, Chairman & Managing Director, was awarded the Transformational Leader Award by the Asian Centre for Corporate Governance and Sustainability. - ITC was declared the winner in the Large Enterprises – Manufacturing Industry category at the ‘Financial Express CFO Awards’. - ITC entered the prestigious ‘A’ List for ‘CDP Water’ and retained the ‘A-’ Leadership in ‘CDP Climate’ for the 3rd consecutive year (Asia & Global average of ‘C’). - ITC became the first Indian company to win the prestigious ‘Global Kaizen Award’ for its Panchla ICML facility at the 5th Edition of the Global KAIZEN™ Awards 2023 at Lisbon, Portugal. - ITC has won the first ‘UNDP-Mahatma Biodiversity Award’ for its human-centric approaches to biodiversity with intensive community engagement. - ITC was conferred the ‘Business Leader of the Year - ESG Award’ at the 50th edition of the ChemTECH Leadership and Excellence Awards 2024. - ITC’s 5 factories - Foods unit at Ranjangaon; Cigarette factories in Ranjangaon, Bengaluru, and Saharanpur; and Green Leaf Threshing unit in Mysuru, received the prestigious AWS Platinum level certification, the highest global recognition for water stewardship. - ITC Hotels was recognized as the best Luxury Hotel Chain for the 5th consecutive year at ‘Travel + Leisure India’s Best Awards 2023’. - ITC Savlon’s Swasth India Mission - Hand Ambassador campaign won 7 trophies and ITC Fiama’s ‘Talking Memes’ campaign won 8 trophies at the ‘Kyoorius Creative Awards’ 2023. - ITC’s Education and Stationery Products Business won a Gold at the ‘Wow Awards Asia’ for the ‘Classmate All Rounder’ competition. - ITC’s Paperboards & Specialty Papers Business was recognized as the Asia-Pacific winner of the ‘Special Award for Sustainability’ at the IDC Future Enterprise Awards 2023 for exemplary digital business models. - ITC’s Packaging Business won 3 prestigious prizes at the WorldStar Awards 2024. The Business also won several national level awards such as the ‘IFCA Star Awards’ and ‘SIES SOP Star Awards’ for excellence in Packaging. - ITC’s Agri Business won the 1st prize in the ‘FICCI Sustainable Agriculture Award’ 2023 for its natural resource management and climate-resilient agriculture programmes. SECTION: Major Awards & Certifications over the Years - 12 ITC Hotels became the first in the world to receive the LEED® Zero Carbon Certification; 4 ITC Hotels also became the first in the world to achieve the LEED® Zero Water Certification. ``` ``` SECTION: Awards and Recognitions - ITC was awarded the First Prize in the ‘Best Industry for CSR Activities’ category by the Ministry of Jal Shakti, Government of India, at the 3rd National Water Awards 2020. - ITC was conferred the ‘Best Governed Company’ Award in the Listed Segment: Large category by the ICSI at the 20th ICSI National Awards for Excellence in Corporate Governance. - Mr. Sanjiv Puri, Chairman & Managing Director, was honoured with the ‘Distinguished Alumnus Award of the Year 2018’ conferred by IIT, Kanpur in recognition of his achievements of exceptional merit. - Mr. Sanjiv Puri was conferred ‘The IMPACT Person of the Year, 2020’ Award by exchange4media, a leading online news platform. - Mr. Sanjiv Puri was ranked one of India’s Most Valuable CEOs by BW Businessworld. - ITC’s Life Sciences and Technology Centre was ranked ‘Top Innovator’ in India amongst Indian pharma and healthcare private companies. - ITC’s Kovai unit received the Platinum level certification, the highest recognition for water stewardship in the world, based on international benchmarks, from the Alliance for Water Stewardship. - ITC won the prestigious Porter Prize 2017 for ‘Excellence in Corporate Governance and Integration’ and for its exemplary contribution in ‘Creating Shared Value’. - ITC’s leading hygiene brand Savlon bagged 7 awards at the coveted Cannes Lions 2017. - ITC Limited became the 1st company to win the India Today Safaigiri Corporate Trailblazer Award 2016. - ITC’s Paperboards and Specialty Papers units at Bhadrachalam, Bollaram, Kovai, and Tribeni are FSC Chain of Custody certified. - ITC was presented the World Business and Development Award at the Rio+20 UN Summit for its Social and Farm Forestry initiative.
For other awards and accolades, please refer to www.itcportal.com. SECTION: ITC Next: Shaping a Future-Ready Enterprise that Puts Nation First SECTION: Farmer Empowerment - Increasing productivity & farmer income, promoting climate-smart agriculture, creating market linkages. - ITCMAARS bringing digital technology to farmers, supporting over 1650 FPOs; covering more than 15 lakh farmers. SECTION: Water Stewardship - Over 16 lakh acres covered. - Over 32,400 water harvesting structures built. - Around 15 lakh acres covered under demand side management. SECTION: Afforestation - Over 11.6 lakh acres greened. - About 21.2 crore person-days of employment supported. SECTION: Biodiversity - Over 4.7 lakh acres restored. SECTION: Skilling - Over 1 lakh youth trained. SECTION: Renewable Energy - 50% of energy consumed from renewable sources. SECTION: Climate Smart Agriculture - Over 10 lakh farmers benefitted. - Around 28 lakh acres covered. SECTION: Women Economic Empowerment - Over 1.9 lakh women benefitted. - Financial Literacy programme has covered over 28.5 lakh women. SECTION: Support to Education - Over 15 lakh children covered. SECTION: Health & Sanitation - Nearly 44,000 Individual Household Toilets constructed. SECTION: Maternal & Child Healthcare and Nutrition - Over 14.6 lakh women covered. SECTION: Livestock Development - Over 22 lakh milch animals covered. - Over 7 lakh animal owners benefitted. SECTION: Solid Waste Management - Over 2.5 crore citizens covered under Well-being Out of Waste. SECTION: Enduring Value - Plastic Neutral since 2021-22. - Pioneer of Green Building Movement in India. - 40 Green Buildings ® Zero Carbon certified hotels. - World’s first 12 LEED ® Zero Carbon data centre. - World’s first LEED ® Zero Water certified hotels. - World’s first 4 LEED certified sites in India are ITC Sites. ITC is the only enterprise in the world to be water positive for 22 years, carbon positive for 19 years, and solid waste recycling positive for 17 years. SECTION: ITC Limited CIN: L16005WB1910PLC001985 Registered Office: Virginia House, 37 Jawaharlal Nehru Road, Kolkata 700 071 Tel: +91 33 2288 9371 Fax: +91 33 2288 2358 E-mail: isc@itc.in Website: www.itcportal.com SECTION: NOTICE OF 113TH ANNUAL GENERAL MEETING NOTICE IS HEREBY GIVEN that the Hundred and Thirteenth Annual General Meeting of the Members of ITC Limited will be held on Friday, 26th July, 2024, at 10.30 a.m. (IST), through Video Conferencing / Other Audio Visual Means, for the transaction of the following businesses: SECTION: ORDINARY BUSINESS 1. To consider and adopt the Financial Statements of the Company for the financial year ended 31st March, 2024, the Consolidated Financial Statements for the said financial year and the Reports of the Board of Directors and the Auditors thereon. 2. To confirm Interim Dividend of ` 6.25 per Ordinary Share of ` 1/- each and declare Final Dividend of ` 7.50 per Ordinary Share for the financial year ended 31st March, 2024. 3. To appoint a Director in place of Mr. Sunil Panray (DIN: 09251023) who retires by rotation and, being eligible, offers himself for re-election. 4. To appoint a Director in place of Mr. Supratim Dutta (DIN: 01804345) who retires by rotation and, being eligible, offers himself for re-election. 5. To consider and, if thought fit, to pass the following resolution as an Ordinary Resolution: “Resolved that, in accordance with the provisions of Sections 139 and 142 of the Companies Act, 2013, Messrs. S R B C & CO LLP, Chartered Accountants (Registration No. 324982E/E300003), be and are hereby re-appointed as the Auditors of the Company from the conclusion of this Meeting to hold such office for a period of five years till the conclusion of the Hundred and Eighteenth Annual General Meeting at a remuneration not exceeding ` 3,85,00,000/- (Rupees Three Crores and Eighty Five Lakhs only), with authority to the Board of Directors of the Company to decide on such remuneration, for conduct of audit for the financial year 2024-25, payable in one or more instalments, plus goods and services tax as applicable and reimbursement of out-of-pocket expenses incurred.” SECTION: SPECIAL BUSINESS SECTION: 6. To consider and, if thought fit, to pass the following resolution as an Ordinary Resolution: “Resolved that, in accordance with the provisions of Section 152 of the Companies Act, 2013, Dr. Alok Pande (DIN: 10631871) be and is hereby appointed as a Director of the Company, liable to retire by rotation, with effect from the date following the date of this meeting, i.e.
27th July, 2024, for a period of three years or till such earlier date upon withdrawal by the recommending Institution or to conform with the policy on retirement and as may be determined by the Board of Directors of the Company and/or by any applicable statutes, rules, regulations or guidelines.” SECTION: 7. To consider and, if thought fit, to pass the following resolution as an Ordinary Resolution: “Resolved that, in accordance with the provisions of Section 152 of the Companies Act, 2013, Mr. Sunil Panray (DIN: 09251023) be and is hereby re-appointed as a Director of the Company, liable to retire by rotation, with effect from 20th December, 2024 for a period of five years or till such earlier date upon withdrawal by the recommending Institution or to conform with the policy on retirement and as may be determined by the Board of Directors of the Company and/or by any applicable statutes, rules, regulations or guidelines.” SECTION: 8. To consider and, if thought fit, to pass the following resolution as an Ordinary Resolution: “Resolved that, in accordance with the provisions of Section 197 of the Companies Act, 2013, consent be and is hereby accorded to variation in the terms of remuneration payable to Mr. Sumant Bhargavan (DIN: 01732482), Wholetime Director, with effect from 1st October, 2024 for the residual period of his current term of appointment, i.e. up to 11th July, 2025, as set out in the Explanatory Statement annexed to the Notice convening this Meeting.” SECTION: 9. To consider and, if thought fit, to pass the following resolution as an Ordinary Resolution: “Resolved that, in accordance with the provisions of Section 197 of the Companies Act, 2013, consent be and is hereby accorded to variation in the terms of remuneration payable to Mr. Supratim Dutta (DIN: 01804345), Wholetime Director, with effect from 1st October, 2024 for the residual period of his current term of appointment, i.e. up to 21st July, 2025, as set out in the Explanatory Statement annexed to the Notice convening this Meeting.” SECTION: 10. To consider and, if thought fit, to pass the following resolution as an Ordinary Resolution: “Resolved that, in accordance with the provisions of Section 197 of the Companies Act, 2013, consent be and is hereby accorded to variation in the terms of remuneration payable to Mr. Hemant Malik (DIN: 06435812), Wholetime Director, with effect from 1st October, 2024 for the residual period of his current term of appointment, i.e. up to 11th August, 2026, as set out in the Explanatory Statement annexed to the Notice convening this Meeting.” SECTION: 11. To consider and, if thought fit, to pass the following resolution as an Ordinary Resolution: “Resolved that, in accordance with the provisions of Sections 196 and 197 of the Companies Act, 2013, Mr. Sumant Bhargavan (DIN: 01732482) be and is hereby re-appointed as a Director, liable to retire by rotation, and also as a Wholetime Director of the Company with effect from 12th July, 2025 for a period of two years or till such earlier date to conform with the policy on retirement and as may be determined by the Board of Directors of the Company and/or by any applicable statutes, rules, regulations or guidelines, on such remuneration as set out in the Explanatory Statement annexed to the Notice convening this Meeting.” SECTION: 12. To consider and, if thought fit, to pass the following resolution as an Ordinary Resolution: “Resolved that, in accordance with the provisions of Sections 196 and 197 of the Companies Act, 2013, Mr.
Supratim Dutta (DIN: 01804345) be and is hereby re-appointed as a Director, liable to retire by rotation, and also as a Wholetime Director of the Company with effect from 22nd July, 2025 for a period of three years or till such earlier date to conform with the policy on retirement and as may be determined by the Board of Directors of the Company and/or by any applicable statutes, rules, regulations or guidelines, on such remuneration as set out in the Explanatory Statement annexed to the Notice convening this Meeting.” SECTION: 13. To consider and, if thought fit, to pass the following resolution as an Ordinary Resolution: “Resolved that, in accordance with the provisions of Regulation 23 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘Listing Regulations’), consent be and is hereby accorded to the Company for entering into and/or continuing to enter into contracts/arrangements/transactions with British American Tobacco (GLP) Limited, United Kingdom (‘BAT GLP’), a related party in terms of Regulation 2(1)(zb) of the Listing Regulations, for sale of unmanufactured tobacco of Indian origin (including storage/holding charges etc.) and purchase of unmanufactured tobacco of international origins, as set out in the Explanatory Statement annexed to the Notice convening this Meeting and on such terms and conditions as may be mutually agreed between the parties, such that the maximum value of the contracts/arrangements/transactions with BAT GLP, in the aggregate, does not exceed ` 2,350 Crores (Rupees Two Thousand Three Hundred and Fifty Crores only) during the financial year 2025-26. Resolved further that the Board of Directors of the Company (ʻthe Boardʼ, which term shall be deemed to include the Audit Committee) be and is hereby authorised to perform and execute all such acts, deeds, matters and things, including delegation of all or any of the powers conferred herein, as may be deemed necessary, proper or expedient to give effect to this Resolution and for the matters connected therewith or incidental thereto, and also to settle any issue, question, difficulty or doubt that may arise in this regard as the Board in its absolute discretion may deem fit or desirable, subject to compliance with the applicable laws and regulations, without the Board being required to seek any further consent/approval of the Members.” SECTION: 14. To consider and, if thought fit, to pass the following resolution as an Ordinary Resolution: “Resolved that, in accordance with the provisions of Section 148 of the Companies Act, 2013, the remuneration of Messrs. ABK & Associates, Cost Accountants, appointed by the Board of Directors of the Company as the Cost Auditors to conduct audit of cost records maintained by the Company in respect of ‘Wood Pulp’ and ‘Paper and Paperboard’ products for the financial year 2024-25, at ` 5,00,000/- (Rupees Five Lakhs only) plus goods and services tax as applicable and reimbursement of out-of-pocket expenses incurred, be and is hereby ratified.” SECTION: 15. To consider and, if thought fit, to pass the following resolution as an Ordinary Resolution: “Resolved that, in accordance with the provisions of Section 148 of the Companies Act, 2013, the remuneration of Messrs. S. Mahadevan & Co., Cost Accountants, appointed by the Board of Directors of the Company as the Cost Auditors to conduct audit of cost records maintained in respect of all applicable products of the Company, other than ‘Wood Pulp’ and ‘Paper and Paperboard’ products, for the financial year 2024-25, at ` 6,50,000/- (Rupees Six Lakhs and Fifty Thousand only) plus goods and services tax as applicable and reimbursement of out-of-pocket expenses incurred, be and is hereby ratified. The Record Date fixed for the purpose of determining entitlement of the Members to the Final Dividend for the financial year ended 31st March, 2024 is Tuesday, 4th June, 2024, and such Dividend, if declared, will be paid between Monday, 29th July, 2024 and Wednesday, 31st July, 2024 to those Members entitled thereto. By Order of the Board ITC Limited R. K. Singhi Executive Vice President & Company Secretary Dated: 23rd May, 2024. SECTION: NOTES: 1. Explanatory Statement, pursuant to Section 102 of the Companies Act, 2013 (‘the Act’), relating to the Special Business to be transacted at this Annual General Meeting (‘AGM’) is annexed. Additional information, pursuant to Regulation 36(5) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, with respect to re-appointment of the Auditors of the Company, as proposed under Item No. 5 of this Notice under Ordinary Business, is also provided in the Explanatory Statement. 2.
Since this AGM is being held through Video Conferencing (‘VC’)/Other Audio Visual Means (‘OAVM’), - Members will not be able to appoint proxies for the meeting, and - Attendance Slip & Route Map are not annexed to this Notice. 3. Corporate Members are requested to send a certified copy of the Board Resolution authorising their representative to attend this AGM, pursuant to Section 113 of the Act, through e-mail at itcagm2024@itc.in or by post to the Investor Service Centre of the Company (ʻISCʼ) at 37 Jawaharlal Nehru Road, Kolkata 700 071. 4. In terms of Section 108 of the Act read with Rule 20 of the Companies (Management and Administration) Rules, 2014, the Resolutions for consideration at this AGM will be transacted through remote e-voting (i.e. facility to cast vote prior to the AGM) and also e-voting during the AGM, for which purpose the Board of Directors of the Company (ʻthe Boardʼ) have engaged the services of National Securities Depository Limited (‘NSDL’). The Board has appointed Mr. R. L. Auddy, Senior Solicitor and Partner, Messrs. Sandersons & Morgans, Advocates & Solicitors, as the Scrutinizer to scrutinize the process of e-voting. Detailed instructions for attending the AGM and also for e-voting are annexed. 5. Remote e-voting will commence at 9.00 a.m. (IST) on Monday, 22nd July, 2024 and will end at 5.00 p.m. (IST) on Thursday, 25th July, 2024, when remote e-voting will be blocked by NSDL. 6. Voting rights will be reckoned on the paid-up value of the shares registered in the name of the Members on Friday, 19th July, 2024 (cut-off date). Only those Members whose names are recorded in the Register of Members of the Company or in the Register of Beneficial Owners maintained by the Depositories as on the cut-off date will be entitled to cast their votes by remote e-voting or e-voting during the AGM. Those who are not Members on the cut-off date should accordingly treat this Notice as for information purposes only. ``` ``` SECTION: Income-tax Act and Dividend Income Pursuant to the Income-tax Act, 1961, dividend income is taxable in the hands of the Members, and the Company is required to deduct tax at source from such dividend at the prescribed rates. A separate communication providing detailed information and instructions regarding tax on the Final Dividend for the financial year ended 31st March, 2024, is being sent to the Members. This communication will also be made available on the Company’s corporate website www.itcportal.com. SECTION: Unclaimed Dividend Unclaimed dividend for the financial year 2016-17 and the shares in respect of which dividend entitlements remain unclaimed for seven consecutive years will be due for transfer to the Investor Education and Protection Fund of the Central Government on 2nd September, 2024, pursuant to Section 124 of the Act read with the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016. Members are requested to claim the said dividend, details of which are available on the Company’s corporate website at http://info-dividend-shares.itcportal.com/popup_new.aspx. ISC will not be able to entertain any claim received after 30th August, 2024, in respect of the same. SECTION: Electronic Communication of AGM Notice In conformity with the Circulars issued by the Ministry of Corporate Affairs, Government of India, and the Securities and Exchange Board of India, the Notice of this AGM and the Report and Accounts 2024 are being sent only through electronic mode to those Members who have registered their e-mail address with the Company or with the Depositories. Members desirous of obtaining physical copies of the said Notice and the Report and Accounts 2024 may send a request to the Company, mentioning their name and DP ID & Client ID / folio number, through e-mail at isc@itc.in or by post to ISC. SECTION: Registration of E-mail Address Members who hold shares in certificate form or who have not registered their e-mail address with the Company or with the Depositories and wish to receive the AGM Notice and the Report and Accounts 2024, or attend the AGM, or cast their votes through remote e-voting or e-voting during the AGM are required to register their e-mail address with the Company at https://eform.itcportal.com. Alternatively, Members may send a letter requesting the registration of their e-mail address, mentioning their name and DP ID & Client ID / folio number, through e-mail at isc@itc.in or by post to ISC.
SECTION: Speaker Registration for AGM Members who would like to express their views or ask questions regarding the agenda item(s) of the meeting may register themselves as a speaker by sending an e-mail to the Executive Vice President & Company Secretary at itcagm2024@itc.in from their registered e-mail address, mentioning their name, DP ID & Client ID / folio number, and mobile number. Only those Members who have registered themselves as speakers by 10.30 a.m. (IST) on Monday, 22nd July, 2024, will be able to express their views / ask questions / seek clarifications at the meeting. The Company reserves the right to restrict the number of questions and/or number of speakers, depending upon the availability of time, for the smooth conduct of the AGM. Further, Members who would like to have their questions/queries responded to during the AGM are requested to send such questions/queries in advance to the Executive Vice President & Company Secretary at itcagm2024@itc.in within the aforesaid time period. SECTION: Inspection of Registers The Register of Directors and Key Managerial Personnel and their shareholding under Section 170 of the Act, the Register of contracts with related parties, and contracts and bodies etc. in which Directors are interested under Section 189 of the Act, and the Certificate from the Secretarial Auditors in respect of the Company’s Employee Stock Option Schemes will be available for inspection through electronic mode during the AGM. Members are required to send a request to the Executive Vice President & Company Secretary at itcagm2024@itc.in. SECTION: Webcasting of AGM Proceedings The Company will be webcasting the proceedings of the AGM on its corporate website www.itcportal.com. The transcript of the AGM proceedings will also be made available on the Company’s website. SECTION: Explanatory Statement Annexed to the Notice convening the Hundred and Thirteenth Annual General Meeting on Friday, 26th July, 2024. SECTION: Item No. 5 - Re-appointment of Auditors The Members at the 108th Annual General Meeting (AGM) held on 12th July, 2019, approved the appointment of Messrs. S R B C & CO LLP, Chartered Accountants (‘SRBC’), as the Auditors of the Company for a period of five years from the conclusion of the said AGM. SRBC will complete their present term on conclusion of this AGM. The Board of Directors of the Company (‘the Board’) at the meeting held on 23rd May, 2024, on the recommendation of the Audit Committee (‘the Committee’), recommended for the approval of the Members, the re-appointment of SRBC as the Auditors of the Company for a period of five years from the conclusion of this AGM till the conclusion of the 118th AGM, in terms of Section 139 of the Companies Act, 2013 (‘the Act’) read with the Companies (Audit and Auditors) Rules, 2014. On the recommendation of the Committee, the Board also recommended for the approval of the Members, the remuneration of SRBC for the financial year 2024-25, as set out in the Resolution. SRBC, established in the year 2002, is a member firm in India of Ernst & Young Global Limited and is a part of S. R. Batliboi & Affiliates network of audit firms. As of 31st March, 2024, the said network of audit firms had 120 partners and employed more than 4,300 people. SRBC have given their consent to act as the Auditors of the Company and have also confirmed compliance with the conditions prescribed under Sections 139 and 141 of the Act read with the Rules thereunder. None of the Directors and Key Managerial Personnel of the Company, or their relatives, is interested in this Resolution. The Board recommends this Ordinary Resolution for your approval. SECTION: Item No. 6 - Appointment of Non-Executive Director The Board of Directors of the Company (‘the Board’) at the meeting held on 23rd May, 2024, on the recommendation of the Nomination & Compensation Committee, recommended for the approval of the Members, the appointment of Dr. Alok Pande as a Non-Executive Director of the Company, as set out in the Resolution. Dr. Pande, if appointed, will represent the Specified Undertaking of the Unit Trust of India (SUUTI). Additional information in respect of Dr. Pande, including his brief resume, pursuant to the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and the Secretarial Standard on General Meetings, is provided below: Dr. Alok Pande (52), a senior Civil Servant specialized in Finance, is presently Additional Secretary, Department of Investment and Public Asset Management (DIPAM), Ministry of Finance, Government of India.
He holds a Bachelor Degree in Engineering (Mechanical) from the Motilal Nehru National Institute of Technology, Allahabad, and has also completed Fellow Programme in Management (Doctorate) from the Indian Institute of Management, Bangalore, in the area of capital markets. Dr. Pande joined the Indian Postal Service in 1994. In his career spanning over 29 years, he has held various positions in the Government of India, including Joint Secretary - DIPAM, and Director - Department of Financial Services (DFS) in the Ministry of Finance. As Joint Secretary, he handled the IPO of the Life Insurance Corporation of India and played a key role in the listing of three Government companies viz., Mazagon Dock Shipbuilders Limited, Indian Railway Finance Corporation Limited, and RailTel Corporation of India Limited. As Director - DFS, he was instrumental in the launch and execution of the Pradhan Mantri Jan Dhan Yojana. Dr. Pande has also handled the IT Project of the Department of Posts, Ministry of Communications, as Deputy Director General. Presently, Dr. Pande is on the Board of Advisors of SUUTI and a Director on the Boards of Indian Bank, AI Assets Holding Limited, AI Engineering Services Limited, and AI Airport Services Limited. He was earlier on the Board of Indian Overseas Bank from 2011 to 2016. He is not a Member of any Board Committee of these companies. Apart from Indian Bank, he has not been a Director of any other listed entity during the last three years. In addition to sitting fees for attending the meetings of the Board & its Committees and coverage under Personal Accident Insurance, Dr. Pande, similar to the other Non-Executive Directors, would be entitled to remuneration by way of commission ranging between ₹ 1,00,00,000/- and ₹ 1,30,00,000/- per annum, as may be determined by the Board. Dr. Pande, pursuant to Section 152 of the Companies Act, 2013 (‘the Act’), has given his consent to act as a Director of the Company, and requisite Notice, pursuant to Section 160 of the Act, proposing his appointment as a Director of the Company has been received; he also possesses appropriate skills, expertise, and competencies in the context of the Company’s businesses, particularly in the areas of financial management, administrative experience, and stakeholder engagement. Dr. Pande neither holds any share in the Company (in individual capacity or on a beneficial basis for any other person) nor is he related to any of the Directors or Key Managerial Personnel of the Company. None of the Directors and Key Managerial Personnel of the Company, or their relatives, is interested in this Resolution. The Board recommends this Ordinary Resolution for your approval. SECTION: Item No. 7 - Re-appointment of Non-Executive Director The Members on 15th December, 2021, approved the appointment of Mr. Sunil Panray as a Non-Executive Director of the Company for a period of three years with effect from 20th December, 2021. Mr. Panray, who represents Tobacco Manufacturers (India) Limited, a subsidiary of British American Tobacco p.l.c., will complete his present term on 19th December, 2024. The Board of Directors of the Company (‘the Board’) at the meeting held on 23rd May, 2024, on the recommendation of the Nomination & Compensation Committee (the Committee), recommended for the approval of the Members, the re-appointment of Mr. Panray as a Non-Executive Director of the Company, as set out in the Resolution. The Committee and the Board are of the view that given the contribution to Board processes by Mr. Panray and his knowledge, time commitment, experience, and performance, his continued association would benefit the Company; he also possesses appropriate skills, expertise, and competencies in the context of the Company’s businesses, particularly in the areas of industry knowledge, strategic insight, and business management. In addition to sitting fees for attending the meetings of the Board & its Committees and coverage under Personal Accident Insurance, Mr. Panray, similar to the other Non-Executive Directors, would be entitled to remuneration by way of commission ranging between ₹ 1,00,00,000/- and ₹ 1,30,00,000/- per annum, as may be determined by the Board. Mr. Panray, pursuant to Section 152 of the Companies Act, 2013 (‘the Act’), has given his consent to act as a Director of the Company, and requisite Notice, pursuant to Section 160 of the Act, proposing his re-appointment as a Director of the Company has been received. Additional information in respect of Mr.
Panray, pursuant to the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and the Secretarial Standard on General Meetings, is appearing in the Report and Accounts under the sections ‘Your Directors’ and ‘Report on Corporate Governance’. He has not been a Director of any other listed entity. Mr. Panray and his relatives are interested in this Resolution. None of the other Directors and Key Managerial Personnel of the Company, or their relatives, is interested in this Resolution. The Board recommends this Ordinary Resolution for your approval. SECTION: Item Nos. 8, 9 & 10 - Variation in Remuneration of Wholetime Directors The Board of Directors of the Company (‘the Board’) at the meeting held on 23rd May, 2024, on the recommendation of the Nomination & Compensation Committee, recommended for the approval of the Members, variation in the terms of remuneration payable to Messrs. B. Sumant, S. Dutta, and H. Malik, Wholetime Directors, with effect from 1st October, 2024, as detailed hereunder. The proposed variation in remuneration is based on the Company’s remuneration strategy of being market competitive, performance-driven, and long-term oriented, while recognizing the enduring impact of leadership talent on business performance. The said variation in remuneration also cognizes market benchmarks, compensation trends, and the Company’s context. Meetings Data: Name of the Director, Period, Basic / Consolidated Salary per month - Mr. B. Sumant, From 1st October, 2024 till the respective date of completion of their current term of appointment, ₹ 17,00,000/- - Mr. S. Dutta, ₹ 15,00,000/- per Director - Mr. H. Malik, * with annual increment not exceeding 7.5% of the applicable Basic / Consolidated Salary, as may be determined by the Board. The Wholetime Directors will be eligible to receive the first such increment effective 1st October, 2025. All other terms of remuneration of the Wholetime Directors, as approved by the Members, will remain unchanged. The aggregate of the remuneration and perquisites/benefits, including contributions towards Provident Fund, Superannuation Fund, and Gratuity Fund, payable to the Chairman & Managing Director and the Wholetime Directors of the Company taken together, shall be within the limit prescribed under the Companies Act, 2013. Additional information in respect of Messrs. Sumant, Dutta, and Malik, pursuant to the Secretarial Standard on General Meetings, is appearing in the Report and Accounts under the sections ‘Your Directors’ and ‘Report on Corporate Governance’. Messrs. Sumant, Dutta, and Malik and their relatives are interested in these Resolutions relating to variation in their respective remuneration. None of the other Directors and Key Managerial Personnel of the Company, or their relatives, is interested in these Resolutions. The Board recommends these Ordinary Resolutions for your approval. SECTION: Item Nos. 11 & 12 - Re-appointment of Wholetime Directors The Members at the 110th Annual General Meeting (‘AGM’) held on 11th August, 2021, approved the re-appointment of Mr. Sumant Bhargavan as a Wholetime Director of the Company for a period of three years with effect from 12th July, 2022. Mr. Sumant will complete his present term on 11th July, 2025. Further, the Members at the 111th AGM held on 20th July, 2022, approved the appointment of Mr. Supratim Dutta as a Wholetime Director of the Company for a period of three years with effect from 22nd July, 2022. Mr. Dutta will complete his present term on 21st July, 2025. The Board of Directors of the Company (‘the Board’) at the meeting held on 23rd May, 2024, on the recommendation of the Nomination & Compensation Committee, recommended for the approval of the Members, the re-appointment of Messrs. Sumant and Dutta as Directors and also as Wholetime Directors of the Company, as set out in the Resolutions relating to their respective re-appointment. The individual remuneration of Messrs. Sumant and Dutta is detailed below: (I) Basic / Consolidated Salary: - ₹ 17,00,000/- per month for Mr. B. Sumant - ₹ 15,00,000/- per month for Mr. S. Dutta, with annual increment not exceeding 7.5% of the applicable Basic / Consolidated Salary, as may be determined by the Board. Messrs. Sumant and Dutta will be eligible to receive the first such increment effective 1st October, 2025, in line with the Resolutions proposed under Item Nos. 8 and 9 of this Notice read with the Explanatory Statement thereto. (II) Performance Bonus: Not exceeding 200% of Basic / Consolidated Salary, payable annually for each financial year, as may be determined by the Board.
SECTION: Long Term Incentives Annual value not exceeding 0.05% of the net profits of the Company for the immediately preceding financial year [computed in accordance with Section 198 of the Companies Act, 2013 (‘the Act’)], as may be determined by the Board. SECTION: Perquisites In addition to the aforesaid Basic / Consolidated Salary, Performance Bonus, and Long Term Incentives, Messrs. Sumant and Dutta shall each be entitled to perquisites like gas, electricity, water, furnishings, leave travel concession for self and family, club fees, personal accident insurance, sampling of the Company’s products and services, etc., in accordance with the rules of the Company, the monetary value of such perquisites being limited to ₹ 10,00,000/- per annum, for the purpose of which limit perquisites shall be valued as per the provisions of the Income-tax Act, 1961 (‘IT Act’) and the Rules thereunder, wherever applicable, and in absence of any such provision, perquisites shall be valued at actual cost. However, the following shall not be included in the aforesaid perquisite limit: ``` ``` SECTION: Remuneration and Perquisites - Rent free accommodation owned/leased/rented by the Company, or Housing Allowance in lieu thereof, as per the rules of the Company. - Contributions to Provident Fund and Superannuation Fund up to 27% of salary and contribution to Gratuity Fund up to 8.33% of salary, as defined in the rules of the respective Funds, or up to such other limit as may be prescribed under the IT Act and the Rules thereunder for this purpose. - Perquisite value in terms of the IT Act and the Rules thereunder upon exercise of Options and/or Stock Appreciation Rights granted under the Company’s Employee Stock Option Schemes and/or Employee Stock Appreciation Rights Scheme. - Medical expenses for self and family as per the rules of the Company. - Use of chauffeur-driven Company car and telecommunication facilities at residence. - Encashment of unavailed leave as per the rules of the Company. - Costs and expenses incurred in connection with transfer/retirement as per the rules of the Company. The aggregate of the remuneration and perquisites/benefits, including contributions towards Provident Fund, Superannuation Fund, and Gratuity Fund, payable to Messrs. Sumant and Dutta along with the Chairman & Managing Director and the other Wholetime Director(s) of the Company taken together, shall be within the limit prescribed under the Act. Messrs. Sumant and Dutta, pursuant to Section 152 of the Act, have given their consents to act as Directors of the Company, and requisite Notices, pursuant to Section 160 of the Act, proposing their re-appointment as Directors of the Company have been received. Additional information in respect of Messrs. Sumant and Dutta, pursuant to the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and the Secretarial Standard on General Meetings, is appearing in the Report and Accounts under the sections ‘Your Directors’ and ‘Report on Corporate Governance’. Messrs. Sumant and Dutta have not been Directors of any other listed entity. Messrs. Sumant and Dutta and their relatives are interested in the Resolutions relating to their respective re-appointment. None of the other Directors and Key Managerial Personnel of the Company, or their relatives, is interested in these Resolutions. The Board recommends these Ordinary Resolutions for your approval. SECTION: Item No. 13 Regulation 23 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘Listing Regulations’) read with the Company’s Policy on Related Party Transactions provides that entering into material transactions with a related party which, either individually or taken together with previous transaction(s) during a financial year, exceed ₹ 1,000 Crores or 10% of the annual consolidated turnover of the Company as per the last audited financial statements, whichever is lower, requires approval of the Members of the Company. As the Members are aware, the Company, in order to further its business interests, enters into various transactions with its related parties, including British American Tobacco (GLP) Limited, United Kingdom (‘BAT GLP’). The estimated value of transactions with BAT GLP during the financial year 2025-26 is expected to exceed the materiality threshold as stated above. Accordingly, the Board of Directors of the Company (‘the Board’) at the meeting held on 23rd May, 2024, on the recommendation of the Audit Committee, recommended for the approval of the Members, entering into material related party contracts/arrangements/transactions in the ordinary course of business and on arm’s length basis with BAT GLP during the financial year 2025-26, as set out in the Resolution. SECTION: Details of contracts/arrangements/transactions Meetings Data: Sl.
No., Particulars, Details of contracts/arrangements/transactions 1, Name of the related party, BAT GLP, a subsidiary of British American Tobacco p.l.c. (‘BAT PLC’). 2, Nature of relationship, The Company is an associate of Tobacco Manufacturers (India) Limited, which is a subsidiary of BAT PLC. By virtue of the same, BAT PLC and its subsidiaries are related parties of the Company. SECTION: Nature and material terms of the transaction Nature of the proposed transaction, Estimated value for the financial year 2025-26 - Sale of unmanufactured tobacco of Indian origin (including storage/holding charges etc.), ₹ 2,335 Crores * - Purchase of unmanufactured tobacco of international origins, ₹ 15 Crores * Contract(s) with BAT GLP are executed for supply of unmanufactured tobacco in terms of which delivery of such goods may span across multiple financial years. The value of supplies under the aforesaid contract(s) executed during the financial year 2025-26, together with outstanding transactions under contracts signed in previous years, will not exceed ₹ 2,350 Crores during the financial year 2025-26. SECTION: Tenure of the transaction Financial year 2025-26 SECTION: Nature of concern or interest Financial SECTION: Value of the transaction Up to ₹ 2,350 Crores SECTION: Percentage of the Company’s annual consolidated turnover for the immediately preceding financial year that is represented by the value of the proposed transaction 3.08% of the Company’s annual consolidated turnover for the financial year 2023-24 SECTION: Justification as to why the related party transaction is in the interest of the Company The Company has been engaged in development, procurement, and supply of unmanufactured tobacco over the last several decades. The Company’s vast experience and strategic capabilities that it has developed in this area have enabled it to become the largest exporter of unmanufactured tobacco from India. The Company has been exporting unmanufactured tobacco to BAT GLP for the past several years. The proposed transactions will aid the growth of the Company’s business. SECTION: Details of valuation or other external party report, if such report has been relied upon Not applicable SECTION: Any other information that may be relevant None None of the Directors and Key Managerial Personnel of the Company, or their relatives, is interested in this Resolution. Members may note that pursuant to the provisions of the Listing Regulations, all related parties of the Company (whether such related party is a party to the above-mentioned transaction or not) shall not vote to approve this Resolution. The Board recommends this Ordinary Resolution for your approval. SECTION: Item Nos. 14 & 15 The Board of Directors of the Company (‘the Board’) at the meeting held on 15th April, 2024, on the recommendation of the Audit Committee, approved the appointment and remuneration of Messrs. ABK & Associates, Cost Accountants, to conduct audit of cost records maintained by the Company in respect of ‘Wood Pulp’ and ‘Paper and Paperboard’ products, and Messrs. S. Mahadevan & Co., Cost Accountants, to conduct audit of cost records maintained in respect of the other applicable products of the Company, including Antiseptic Liquid, Flexibles, Soyabean Oil, Facewash, Handwash, Vegetable and Fruit wash, Floor Cleaner, Hand Sanitizer, and Coffee, for the financial year 2024-25. In terms of Section 148 of the Companies Act, 2013 read with the Companies (Audit and Auditors) Rules, 2014, remuneration of the Cost Auditors is required to be ratified by the Members of the Company. None of the Directors and Key Managerial Personnel of the Company, or their relatives, is interested in these Resolutions. The Board recommends these Ordinary Resolutions for your approval. By Order of the Board ITC Limited R. K. Singhi Executive Vice President & Company Secretary Dated: 23rd May, 2024. SECTION: INSTRUCTIONS FOR ATTENDING THE AGM AND ALSO FOR E-VOTING SECTION: I. Instructions for attending the AGM through VC/OAVM (a) Members who wish to attend this AGM through VC/OAVM are requested to follow the steps enumerated under (II) below for login to the NSDL e-voting system. After login, click on the ‘VC/OAVM’ link appearing under ‘Join Meeting’ against the Electronic Voting Event Number (‘EVEN’) of ITC Limited. (b) The facility for the Members to join this AGM through VC/OAVM will be available from 30 minutes before the time scheduled for the meeting and may close not earlier than 30 minutes after the commencement of the meeting. (c) Members are requested to login to the NSDL e-voting system using their laptops/desktops/tablets with stable Wi-Fi or LAN connection for better experience.
Members logging in from mobile devices or through laptops/desktops/tablets connecting via mobile hotspot or with low bandwidth may experience audio/video loss due to fluctuation in their respective network. SECTION: II. Instructions for remote e-voting SECTION: Step 1: Access to NSDL e-voting website SECTION: (A) For Individual Members holding shares in dematerialised form: For Members holding shares in demat account with NSDL If you are registered for ‘IDeAS’ facility, you are required to follow the below-mentioned steps: 1. Launch internet browser by typing the URL: https://eservices.nsdl.com and click on ‘Beneficial Owner’ tab under the ‘IDeAS’ section. 2. Insert your existing user ID, password/OTP, and the verification code as shown on the screen. 3. After login, click on ‘Access to e-voting’ under value-added services and you will be able to see the e-voting page. 4. Click on ‘evote’ link available against ITC Limited or ‘e-voting service provider - NSDL’ and proceed to Step 2 to cast your vote. If you are not registered for ‘IDeAS’, you are required to follow the below-mentioned steps: 1. Launch internet browser by typing the URL: https://evoting.nsdl.com and click on ‘Shareholder/Member - Login’. 2. Insert your existing user ID, password/OTP, and the verification code as shown on the screen, and agree to the terms and conditions by clicking the box. 3. After authentication, you will be re-directed to NSDL e-services website wherein you will be able to see the e-voting page. 4. Click on ‘evote’ link available against ITC Limited or ‘e-voting service provider - NSDL’ and proceed to Step 2 to cast your vote. You may also download the NSDL Mobile App ‘NSDL Speede’ by scanning the following QR code, for e-voting: App Store & Google Play For Members holding shares in demat account with Central Depository Services (India) Limited (‘CDSL’) If you are registered for ‘Easi/Easiest’ facility, you are required to follow the below-mentioned steps: 1. Login at www.cdslindia.com and click on ‘My Easi New (Token)’, or launch internet browser by typing the URL: https://web.cdslindia.com/myeasitoken/home/login. 2. Insert your existing user ID and password. 3. After OTP based authentication and login, you will be able to view the e-voting menu. 4. Click on ‘evote’ link available against ITC Limited or ‘e-voting service provider - NSDL’ and proceed to Step 2 to cast your vote. You can also directly access the e-voting page by clicking on ‘E Voting’ on the home page of www.cdslindia.com with your demat account number and PAN. After OTP based authentication and login, select ‘NSDL’ as the e-voting service provider and proceed to Step 2 to cast your vote. SECTION: For Members logging in through the websites of their Depository Participants 1. Login to your demat account, using the login credentials, through the concerned Depository Participant registered with NSDL/CDSL. 2. Click on the option available for e-voting. You will be re-directed to NSDL e-services website wherein you will be able to see the e-voting page. 3. Click on ‘evote’ link available against ITC Limited or ‘e-voting service provider - NSDL’ and proceed to Step 2 to cast your vote. Members who are unable to retrieve their user ID or password are advised to use ‘Forgot User ID’/‘Forgot Password’ option(s) available on the websites of the respective Depositories/Depository Participants. SECTION: (B) For Non-Individual Members holding shares in dematerialised form and Members holding shares in certificate form: If you are holding shares in dematerialised form and are registered for NSDL ‘IDeAS’ facility, you can login at https://eservices.nsdl.com with your existing IDeAS login and click on ‘Access to e-voting’ to proceed to Step 2 to cast your vote. Other Members, including Members holding shares in certificate form, are required to follow the below-mentioned steps: 1. Launch internet browser by typing the URL: https://evoting.nsdl.com and click on ‘Shareholder/Member - Login’. 2. Insert your user ID, password, and the verification code as shown on the screen. User ID: - For Members holding shares in demat account with NSDL: 8 character DP ID followed by 8 digit Client ID. For example, if your DP ID is IN300* and Client ID is 12**, then your user ID is IN30012***. - For Members holding shares in demat account with CDSL: 16 digit Beneficiary ID. For example, if your Beneficiary ID is 12**********, then your user ID is 12**********. - For Members holding shares in certificate form: EVEN followed by your folio number registered with the Company. For example, if the EVEN is 101456 and your folio number is 01/12, then your user ID is 1014560112**. Password: 1.
If you are already registered with NSDL for remote e-voting, you should use your existing password for login. Members may also use OTP based login. 2. If you are using NSDL e-voting system for the first time, you would need to use your ‘initial password’ for login, which has been communicated to you by the Company. 3. If you are unable to retrieve the ‘initial password’, or have forgotten your password: - Click on ‘Forgot User Details / Password?’, if holding shares in dematerialised form, or - Click on ‘Physical User Reset Password?’, if holding shares in certificate form. You may also send an e-mail requesting for password at evoting@nsdl.com, mentioning your name, PAN, registered address, and your DP ID & Client ID/folio number. Agree to the terms and conditions by clicking the box. Click on ‘Login’. Home page of remote e-voting opens. SECTION: Step 2: Cast your vote on NSDL e-voting website 1. Select the EVEN of ITC Limited. 2. Now you are ready for remote e-voting as ‘Cast Vote’ page opens. 3. Cast your vote by selecting the appropriate option and click on ‘Submit’. Thereafter click on ‘Confirm’ when prompted; upon confirmation, your vote is cast and the message ‘Vote cast successfully’ will be displayed. SECTION: Other Instructions 1. Corporate and Institutional Members (companies, trusts, societies etc.) are required to send a scanned copy (in PDF/JPG format) of the relevant Board Resolution/appropriate authorisation to the Scrutinizer through e-mail at rla.itcscrutinizer@gmail.com with a copy marked to NSDL at evoting@nsdl.com. 2. Those who become Members of the Company after sending the Notice but on or before 19th July, 2024 (cut-off date) may write to NSDL at evoting@nsdl.com or to the Company at isc@itc.in requesting for user ID and password. On receipt of user ID and password, the steps under ‘Step 2: Cast your vote on NSDL e-voting website’ should be followed for casting of vote. 3. In case of any query, you may refer to the Frequently Asked Questions for Shareholders and e-voting User Manual for Shareholders available under the Downloads section of NSDL’s e-voting website www.evoting.nsdl.com. You may also contact the following persons for any query/grievance: 1. Mr. Amit Vishal, Deputy Vice President, National Securities Depository Limited, Trade World, ‘A’ Wing, 4th Floor, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel, Mumbai 400 013 at telephone no. 022-4886 7000 or at e-mail ID AmitV@nsdl.com; 2. Mr. T. K. Ghosal, Head of ISC, at telephone nos. 1800-345-8152 (toll free) or 033-2288 6426/0034 or at e-mail ID tunal.ghosal@itc.in. You may also send your queries to the e-mail ID isc@itc.in. SECTION: III. Instructions for e-voting during the AGM 1. The procedure for e-voting during the AGM is the same as mentioned under (II) above for remote e-voting. 2. The aforesaid facility will be available only to those Members who participate in the AGM and who do not cast their votes by remote e-voting prior to the AGM. Members who cast their votes by remote e-voting will not be entitled to cast their votes again. SECTION: General Information 1. There will be one vote for every DP ID & Client ID/folio number irrespective of the number of joint holders. ``` ``` SECTION: Technical Assistance for Meeting and E-Voting In case the Members require any technical assistance with respect to attending the meeting or e-voting during the meeting, they may contact the helpline numbers mentioned above under Clause (c) of ‘Other Instructions’ for remote e-voting. Individual Members holding shares in dematerialised form may also reach out for any technical issue related to login through their respective Depositories, i.e. NSDL and CDSL, as follows: - NSDL: e-mail at evoting@nsdl.com or call at telephone no. 022-4886 7000. - CDSL: e-mail at helpdesk.evoting@cdslindia.com or call at telephone no. 1800-225-533 (toll free). SECTION: Voting Results Declaration The Results of voting will be declared within two working days from the conclusion of the AGM and the Resolutions will be deemed to be passed on the date of the AGM, subject to receipt of requisite number of votes. The declared Results, along with the Scrutinizer’s Report, will be available forthwith on the Company’s corporate website www.itcportal.com under the section ‘Investor Relations’ and on the website of NSDL. Such Results will also be forwarded to the National Stock Exchange of India Limited, BSE Limited, and The Calcutta Stock Exchange Limited, where the Company’s shares are listed. ```

Subsets and Splits