Balance Sheet as at 31st March, 2009

Schedule 31st March, 2009 31st March, 2008

(Rs. in Crores) (Rs. in Crores)

I. Sources of Funds
1. Shareholders’ Funds
a) Capital 1 377.44 376.86
b) Reserves & Surplus 2 13357.64 13735.08 11680.81 12057.67
2. Loan Funds
a) Secured Loans 3 11.63 5.57
b) Unsecured Loans 4 165.92 177.55 208.86 214.43
3. Deferred Tax - Net 5 867.19 545.07
Total 14779.82 12817.17

II. Application of Funds

1. Fixed Assets 6
a) Gross Block 10558.65 8959.70
b) Less: Depreciation 3286.74 2790.87
c) Net Block 7271.91 6168.83
d) Capital Work-in-Progress 1214.06 8485.97 1126.82 7295.65
2. Investments 7 2837.75 2934.55
3. Current Assets, Loans and Advances
a) Inventories 8 4599.72 4050.52
b) Sundry Debtors 9 668.67 736.93
c) Cash and Bank Balances 10 1032.39 570.25
d) Other Current Assets 11 215.35 146.07
e) Loans and Advances 12 1644.98 1515.50
8161.11 7019.27
Less :
4. Current Liabilities and Provisions
a) Liabilities 13 2964.52 2786.97
b) Provisions 14 1740.49 1645.33
4705.01 4432.30
Net Current Assets 3456.10 2586.97
Total 14779.82 12817.17

Notes to the Accounts 19

Segment Reporting 20
Related Party Disclosures 21
Significant Accounting Policies 22

The Schedules referred to above form an integral part of the Balance Sheet.

Per our Report attached On behalf of the Board

For A. F. FERGUSON & CO.
Chartered Accountants Y. C. DEVESHWAR Chairman
M. S. DHARMADHIKARI K. VAIDYANATH Director
Partner B. B. CHATTERJEE Secretary
Kolkata, 22nd May, 2009

78 ITC Report and Accounts 2009

Profit and Loss Account for the year ended 31st March, 2009
Schedule For the year ended For the year ended
31st March, 2009 31st March, 2008
(Rs. in Crores) (Rs. in Crores)

IA. Gross Income 23678.46 21966.84

IB. Net Income

Gross Sales 23143.53 21355.94
Less : Excise Duties and Taxes on Sales of
Products and Services 7755.42 7408.41
Net Sales 15388.11 13947.53
Other Income 15 534.93 610.90
15923.04 14558.43

II. Expenditure
Raw Materials etc. 16 6446.78 6016.70
Manufacturing, Selling etc. Expenses 17 4101.11 3531.50
Depreciation 549.41 438.46
11097.30 9986.66

III. Profit
Profit before Taxation 4825.74 4571.77
Provision for Taxation 18 1562.15 1451.67
Profit after Taxation 3263.59 3120.10
Profit brought forward 724.45 647.53
Available for appropriation 3988.04 3767.63

IV. Appropriations
General Reserve 1500.00 1500.00
Proposed Dividend 1396.53 1319.01
Income Tax on Proposed Dividend
- Current year 237.34 224.17
- Earlier year’s provision no longer required (3.97) –
Profit carried forward 858.14 724.45
3988.04 3767.63
Earnings Per Share (Face Value Re. 1.00 each) 19(iii)
Basic Rs. 8.66 Rs. 8.29
Diluted Rs. 8.64 Rs. 8.25

Notes to the Accounts 19

Segment Reporting 20
Related Party Disclosures 21
Significant Accounting Policies 22
The Schedules referred to above form an integral part of the Profit and Loss Account.

Per our Report attached to the Balance Sheet On behalf of the Board
For A. F. FERGUSON & CO.
Chartered Accountants Y. C. DEVESHWAR Chairman
M. S. DHARMADHIKARI K. VAIDYANATH Director
Partner B. B. CHATTERJEE Secretary
Kolkata, 22nd May, 2009

ITC Report and Accounts 2009 79

Balance Sheet as at 31st March, 2010
Schedule 31st March, 2010 31st March, 2009
(Rs. in Crores) (Rs. in Crores)

I. Sources of Funds
1. Shareholders’ Funds
a) Capital 1 381.82 377.44
b) Reserves and Surplus 2 13682.56 14064.38 13357.64 13735.08
2. Loan Funds
a) Secured Loans 3 – 11.63
b) Unsecured Loans 4 107.71 107.71 165.92 177.55
3. Deferred Tax - Net 5 785.01 867.19
Total 14957.10 14779.82

II. Application of Funds

1. Fixed Assets 6
a) Gross Block 11967.86 10558.65
b) Less: Depreciation 3825.46 3286.74
c) Net Block 8142.40 7271.91
d) Capital Work-in-Progress 1008.99 9151.39 1214.06 8485.97
2. Investments 7 5726.87 2837.75
3. Current Assets, Loans and Advances
a) Inventories 8 4549.07 4599.72
b) Sundry Debtors 9 858.80 668.67
c) Cash and Bank Balances 10 1126.28 1031.01
d) Other Current Assets 11 288.39 215.35
e) Loans and Advances 12 1304.54 1644.98
8127.08 8159.73
Less :
4. Current Liabilities and Provisions
a) Liabilities 13 3498.30 2974.12
b) Provisions 14 4549.94 1729.51
8048.24 4703.63
Net Current Assets 78.84 3456.10
Total 14957.10 14779.82

Notes to the Accounts 19

Segment Reporting 20
Related Party Disclosures 21
Significant Accounting Policies 22

The Schedules referred to above form an integral part of the Balance Sheet.

In terms of our report of even date On behalf of the Board

For DELOITTE HASKINS & SELLS
Chartered Accountants Y. C. DEVESHWAR Chairman
P. R. RAMESH K. VAIDYANATH Director
Partner B. B. CHATTERJEE Secretary
Kolkata, 21st May, 2010

78 ITC Report and Accounts 2010

Profit and Loss Account for the year ended 31st March, 2010
Schedule For the year ended For the year ended
31st March, 2010 31st March, 2009
(Rs. in Crores) (Rs. in Crores)

IA. Gross Income 26862.98 23678.46

IB. Net Income

Gross Sales 26259.60 23143.53
Less : Excise Duties and Taxes on
Sales of Services 19(xiv) 8106.41 7531.61
Net Sales 18153.19 15611.92
Other Income 15 603.38 534.93
18756.57 16146.85

II. Expenditure
Raw Materials etc. 16 6971.40 5957.87
Manufacturing, Selling etc. Expenses 17 5161.15 4813.83
Depreciation 608.71 549.41
12741.26 11321.11

III. Profit
Profit before Taxation 6015.31 4825.74
Provision for Taxation 18 1954.31 1562.15
Profit after Taxation 4061.00 3263.59
Profit brought forward 858.14 724.45
Available for appropriation 4919.14 3988.04

IV. Appropriations
General Reserve 406.10 1500.00
Proposed Dividend
- Ordinary Dividend 1718.18 1396.53
- Special Centenary Dividend 2100.00 –
Income Tax on Proposed Dividend
- Current year 634.15 237.34
- Earlier year’s provision no longer required (0.60) (3.97)
Profit carried forward 61.31 858.14
4919.14 3988.04
Earnings Per Share (Face Value Re. 1.00 each) 19(iii)
Basic Rs. 10.73 Rs. 8.66
Diluted Rs. 10.62 Rs. 8.64

Notes to the Accounts 19

Segment Reporting 20
Related Party Disclosures 21
Significant Accounting Policies 22
The Schedules referred to above form an integral part of the Profit and Loss Account.

In terms of our report of even date On behalf of the Board

For DELOITTE HASKINS & SELLS
Chartered Accountants Y. C. DEVESHWAR Chairman
P. R. RAMESH K. VAIDYANATH Director
Partner B. B. CHATTERJEE Secretary
Kolkata, 21st May, 2010

ITC Report and Accounts 2010 79

Balance Sheet as at 31st March, 2008
Schedule 31st March, 2008 31st March, 2007
(Rs. in Crores) (Rs. in Crores)

I. Sources of Funds
1. Shareholders’ Funds
a) Capital 1 376.86 376.22
b) Reserves & Surplus 2 11680.81 12057.67 10060.86 10437.08
2. Loan Funds
a) Secured Loans 3 5.57 60.78
b) Unsecured Loans 4 208.86 214.43 140.10 200.88
3. Deferred Tax-Net 5 545.07 472.85
Total 12817.17 11110.81

II. Application of Funds

1. Fixed Assets 6
a) Gross Block 8959.70 7134.31
b) Less: Depreciation 2790.87 2389.54
c) Net Block 6168.83 4744.77
d) Capital Work-in-Progress 1126.82 7295.65 866.14 5610.91
2. Investments 7 2934.55 3067.77
3. Current Assets, Loans and Advances
a) Inventories 8 4050.52 3354.03
b) Sundry Debtors 9 736.93 636.69
c) Cash and Bank Balances 10 570.25 900.16
d) Other Current Assets 11 146.07 183.04
e) Loans and Advances 12 1515.50 1215.80
7019.27 6289.72
Less :
4. Current Liabilities and Provisions
a) Liabilities 13 2786.97 2384.75
b) Provisions 14 1645.33 1472.84
4432.30 3857.59
Net Current Assets 2586.97 2432.13
Total 12817.17 11110.81

Notes to the Accounts 19

Segment Reporting 20
Related Party Disclosures 21
Significant Accounting Policies 22

The Schedules referred to above form an integral part of the Balance Sheet.

Per our Report attached On behalf of the Board

For A. F. FERGUSON & CO.
Chartered Accountants Y. C. DEVESHWAR Chairman
M. S. DHARMADHIKARI K. VAIDYANATH Director
Partner B. B. CHATTERJEE Secretary
Kolkata, 23rd May, 2008

68 ITC Report and Accounts 2008

Profit and Loss Account for the year ended 31st March, 2008
Schedule For the year ended For the year ended
31st March, 2008 31st March, 2007
(Rs. in Crores) (Rs. in Crores)

IA. Gross Income 21966.84 19636.53

IB. Net Income

Gross Sales 21355.94 19300.04
Less : Excise Duties and Taxes on Sales of
Products and Services 7408.41 7135.75
Net Sales 13947.53 12164.29
Other Income 15 610.90 336.49
14558.43 12500.78

II. Other Expenditure

Raw Materials etc. 16 6016.70 5194.78
Manufacturing, Selling etc. Expenses 17 3531.50 3016.38
Depreciation 438.46 362.92
9986.66 8574.08

III. Profit
Profit before Taxation 4571.77 3926.70
Provision for Taxation 18 1451.67 1226.73
Profit after Taxation 3120.10 2699.97
Profit brought forward 647.53 562.06
Available for appropriation 3767.63 3262.03

IV. Appropriations
General Reserve 1500.00 1250.00
Proposed Dividend 1319.01 1166.29
Income Tax on Proposed Dividend 224.17 198.21
Profit carried forward 724.45 647.53
3767.63 3262.03

Earnings Per Share (Face Value Re. 1.00 each) 19(iii)

On Profit after Taxation
Basic Rs. 8.29 Rs. 7.19
Diluted Rs. 8.25 Rs. 7.16

Notes to the Accounts 19

Segment Reporting 20
Related Party Disclosures 21
Significant Accounting Policies 22

The Schedules referred to above form an integral part of the Profit and Loss Account.

Per our Report attached to the Balance Sheet On behalf of the Board
For A. F. FERGUSON & CO.
Chartered Accountants Y. C. DEVESHWAR Chairman
M. S. DHARMADHIKARI K. VAIDYANATH Director
Partner B. B. CHATTERJEE Secretary
Kolkata, 23rd May, 2008

ITC Report and Accounts 2008 69