MIRA
INFORM REPORT
|
Report Date : |
09.05.2007 |
IDENTIFICATION DETAILS
|
Correct Name : |
ITC LIMITED |
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Formerly Known
As : |
INDIA TOBACCO
COMPANY LIMITED |
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Registered
Office : |
Virginia House,
37, |
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Country : |
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Financials (as
on) : |
31.03.2006 |
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Date of
Incorporation : |
28.08.1910 |
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Com. Reg. No.: |
21-1985 |
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CIN No.: [Company Identification No.] |
L16005WB1910PLC001985 |
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TAN No.: (Tax Deduction & Collection Account No.) |
CALI01571D/CALI01969C/CALI01837D |
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PAN No.: (Permanent Account No.) |
AAACI5950L |
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Legal Form : |
Public Limited Liability
Company. Company’s shares are listed on Stock Exchanges. |
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Line of
Business : |
Manufacturer of
Cigarettes and Tobacco. It is also engaged in Hotel Business. |
RATING & COMMENTS
|
MIRA’s Rating
: |
Aa |
RATING
|
STATUS |
PROPOSED
CREDIT LINE |
|
|
71-85 |
Aa |
Possesses adequate working capital. No caution
needed for credit transaction. It has above average (strong) capability for
payment of interest and principal sums |
Large |
|
Maximum Credit
Limit : |
USD 350000000 |
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Status : |
Good |
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Payment
Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
ITC is a reputed
group of companies, having multi products and multi business operations. Available
information indicates high financial responsibility of the company and its
management. Financial position of the company is good. Payments are usually
correct and as per commitments. The company
has been faring well. Its’ trade relations are fair. The company can
be considered good for normal business dealings at usual trade terms and
conditions. |
LOCATIONS
|
Registered
Office : |
Virginia House,
37, |
|
Tel. No.: |
91–33–22260034 /
22260029 / 22266426 / 22499371 / 9253
/ 22469373 / 22889371 |
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Fax No.: |
91–33–22452251-60
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E-Mail : |
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Website : |
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Head Office : |
ITC Hotel
Kakatiya Sheraton & Towers 63-3-1187,
Begumpet, Hyderabad-500016 |
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Tel. No.: |
91-40-23400132 |
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Fax No.: |
91-40-23401045 |
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|
|
Plants : |
Cigarette Factories
˜
P. O.
Pulikeshinagar, ˜
Sardar
Patel Marg, P. O. Box No. 25, ˜
93/1,
Karl Marx Sarani, P. B. No. 17203, Kolkata - 700 043, ˜
˜
Basdeopur
P. O., District Munger - 811 202, Munger Green Leaf Threshing Plants
˜
East
Godavari District, Anaparti - 533 342, Andhra Pradesh ˜
P. B.
No. 1, Chirala - 523 157, Andhra Pradesh Packaging & Printing Plants
˜
Basdeopur
P. O., District Munger, Munger - 811 202 ˜
P. O.
Box No. 2277, Tiruvottiyur, Chennai - 600 019, Tamilnadu Tel.
No. 91-44-2434 5298 / 3585 / 7092 Fax No. 91-44-2434 0294 ˜
Tribeni
Mill, P. O. Chandrahati, District Hooghly, Paper & Paperboard Mills
˜
Anrich
Industrial Estate, Village Bollarum, Medak District, Andhra Pradesh – 502 325 ˜
P. O.
Chandrahati, District Hooghly - 712 504, ˜
Sarapaka,
Khammam District - 507 128, Andhra Pradesh Cast Coating Plant
Anrich Industrial
Estate, Village Bollarum, Medak District - 502 325, Andhra Pradesh Lifestyle Retailing
Design & Technology Centre
86, Industrial
Estate, Phase I, Udhyog Nagar, Gurgaon - 122 016, Haryana Wills Lifestyle Stores
˜
A-6,
Sadar Bazar, ˜
Shop
No. 3, ˜
171/12,
˜
1381/13-4,
˜
Motiwala
Trade Centre, Shop No. B-10 & N-11, Nirala Bazar, ˜
No.
6, ˜
Shop
No. 42-44, Siddharth Complex, R. C. Dutt Road, Alkapur, Baroda – 243 001,
Gujarat ˜
48-A,
Civil Lines, ˜
1675,
˜
138/42,
˜
794,
Shaheed Nagar, Janpath, Bhubaneshwar – 751 001, Orissa ˜
SCO –
14, Sector – 17E, ˜
No.
19, Ground Floor, Quaiser Tower, Khader Nawaz Khan Road, Nungambakkam,
Chennai – 600 034, Tamilnadu ˜
Plot
No. 4676, No. AA/11, Ground Floor, Anna Nagar, Chennai – 600 040, Tamilnadu ˜
Aishwareya
Commercial Centre, 196/13, ˜
56, ˜
Ground
Floor No. 40/7182, M. ˜
No.
3293, Ground Floor, ˜
Shop
No. G 4 & 5, G. S. Chambers, ˜
Shop
No. 8 & 9, Bansi Trade Centre, 581, ˜
Gulab
Niwas, ˜
540-R,
˜
5
& 6 Residency Road, ˜
Rave
3, ˜
19 B,
Shakespeare Sarani, Ground Floor, Kolkata – 700 071, ˜
17/1491,
A-4 Malabar Gate, ˜
85/4A,
The Mall, ˜
No.
36, ˜
Shop
No. 1 & 2, 14-2-99/1, Ward No. 14, ˜
Plot
No. 386, Ground Floor, Durga Chambers, Linking Road, Khar (West), Mumbai –
400 052, Maharashtra ˜
Shop
No. 7 & 8, Ground Floor, Prema Building, Plot No. 67, J. P. Road,
Lokhandwala, Andheri (West), Mumbai – 400 058, Maharashtra ˜
No. 6
& 6A, Tirupati Apartment, ˜
Shop
No. 2, 3 & 32, Ruki Mahal Co-operative Housing Society Limited, Plot No.
46, 44, Sector 17, Vashi, Navi Mumbai – 400 705, Maharashtra ˜
3, 4,
61 & 62, Chadda Crescent Co-operative Housing Society Limited, Plot No. 46, 55, Sector 17, Vashi, New Mumbai –
400 705, Maharashtra ˜
No.
27-29, Poonam Chambers, ˜
F-41,
South Extension – 1, ˜
No.
10208, ˜
E-2, ˜
M-12,
Greater Kailash – I, ˜
No.
M-14 a & M-15, a, b, c, d, Plot No. 331, Block E, Sector – 27, Noida, G.
B. Nagar, Uttar Pradesh – 201 301 ˜
No.
1204/22, Ground Floor, Shivaji Nagar, Junglee Maharaj Road, Pune – 411 004,
Maharashtra ˜
119, ˜
1st
& 2nd Floor, GEL Church-Commercial Complex, ˜
1-7-293/2/A/1,
˜
UG-2,
Manav Mandir, Athawa Lines, ˜
Shop
No. 1, ˜
C-56,
˜
Shop
No. 1, Rednam Manor, Dwarka Nagar, Near Club Stores
Karnataka Golf
Association Gurgaon
Classic Golf
Resort
Beldih Club Kolkata
Tollygunge Club Royal Mumbai
United Services
Club |
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Hotels : |
ITC Hotel Sonar Bangla
Sheraton &
Towers, 1, ITC Hotel Grand Maratha Sheraton & Towers
Sahar, Mumbai -
400 099, ITC Hotel Maurya Sheraton & Towers
Diplomatic
Enclave, Chola Sheraton
10, WelcomeHotel Mughal Sheraton
Taj Ganj, |
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Division
Headquarters : |
Chief Executive
Head of Finance
Vice President - HRD
Chief Information Officer
Chief Manager - Processed Fruits
Vice President - Operations
Trader - Edible Nuts and Spices
Chief Trader - Coffee and Spices
Chief Manager - Aqua
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DIRECTORS
|
Name : |
Mr. Yogesh
Chander Deveshwar |
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Designation : |
Chairman |
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Name : |
Mr. Sahibzada
Syed Habib-ur-Rehman |
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Designation : |
Executive Director |
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Name : |
Mr. Anup Singh |
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Designation : |
Executive Director |
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Name : |
Mr.
Krishnamoorthy Vaidyanath |
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Designation : |
Executive Director |
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Name : |
Mr. Charles
Richard Green |
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Designation : |
Non-Executive Director |
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Name : |
Mr. Ajeet Prasad |
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Designation : |
Non-Executive Director |
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Name : |
Mr. Pillappakkam
Bahukutumbi Ramanujam |
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Designation : |
Non-Executive Director |
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Name : |
Mr. Basudeb Sen |
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Designation : |
Non-Executive Director |
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Name : |
Mr. John Patrick
Daly |
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Designation : |
Non-Executive Director |
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Name : |
Mr. Ram S.
Tarneja |
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Designation : |
Non-Executive Director |
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Name : |
Mr. Balakrishnan
Vijayaraghavan |
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Designation : |
Non-Executive Director |
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Name : |
Mr. Yash Pall
Gupta |
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Designation : |
Non-Executive Director |
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Name : |
Mr.
Sunil Behari Mathur |
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Designation : |
Non-Executive
Directors |
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Name : |
Mr.
Dinesh Kumar Mehrotra |
|
Designation : |
Non-Executive
Directors |
KEY EXECUTIVES
|
Name
: |
Mr. Biswa Behari Chatterjee |
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Designation
: |
Executive Vice President and Company Secretary |
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Managements :-
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Audit
Committee :- |
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Mr. P. B.
Ramanujam |
Chairman |
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Mr. S B Mathur |
Member |
|
Mr. B Vijayaraghavan |
Member |
|
Mr. K Vaidyanath |
Director responsible for the Finance Function |
|
Mr. S Basu |
Head of Internal Audit |
|
Mr. B B
Chatterjee |
Company Secretary |
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Compensation Committee :- |
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Mr. B. Sen |
Chairman |
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Mr. C. R. Green |
Member |
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Mr. J P Daly |
Member |
|
Mr. S B Mathur |
Member |
|
Mr. Ram S. Taneja |
Member |
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Investor Services Committee :- |
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|
Mr. B. Sen |
Chairman |
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Mr. P. B.
Ramanujam |
Member |
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Mr. A. Singh |
Member |
|
Mr. B. B.
Chatterjee |
Secretary |
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Nominations Committee :- |
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|
Mr. Y. C.
Deveshwar |
Chairman |
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Mr. J P Daly |
Member |
|
Mr. C. R. Green |
Member |
|
Mr. S B Mathur |
Member |
|
Mr. D K Mehrotra |
Member |
|
Mr. P. B.
Ramanujam |
Member |
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Mr. B. Sen |
Member |
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Mr. Ram S.
Tarneja |
Member |
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Mr. B.
Vijayaraghavan |
Member |
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Corporate Management Committee:- |
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|
Directors:- |
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Mr. Y. C.
Deveshwar |
Chairman |
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Mr. S. S. H.
Rehman |
Member |
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Mr. A. Singh |
Member |
|
Mr. K. Vaidyanath |
Member |
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Executives :- |
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|
Mr. K. S.
Vaidyanathan |
Member |
|
Mr. R G Jacob |
Invitee |
|
Mr. A. Nayak |
Permanent Invitee |
|
Mr. R. Srinivasan |
Permanent Invitee |
|
Mr. B. B.
Chatterjee |
Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
Category
|
No. of shares
|
% of shareholding
|
|
Banks, Financial Institutions, Insurance Companies and Mutual Funds |
1,35,91,45,869 |
36.19 % |
|
Foreign Companies |
1,20,86,86,701 |
32.19 % |
|
Foreign Institutional Investors |
53,84,43,002 |
14.34 % |
|
NRIs / OCBs / Foreign Nationals |
2,39,41,653 |
0.64 % |
|
Shares Underlying Global Depository Receipts |
6,87,00,497 |
1.83 % |
|
Indian Public & others |
55,62,61,138 |
14.81 % |
|
Total |
3,75,51,78,860 |
100.00 % |
Top Ten Shareholders of the Company as on 31st
March, 2006
Names of Shareholders
|
No of shares
|
% of shareholding
|
|
Tobacco Manufacturers
( |
99,27,82,440 |
26.44 % |
|
Unit Trust of |
44,55,54,160 |
11.87 % |
|
Life Insurance
Corporation of |
44,08,83,480 |
11.74 % |
|
Myddleton
Investment Company Limited |
16,21,03,980 |
4.32 % |
|
The New India
Assurance Company Limited |
9,77,56,835 |
2.60 % |
|
General Insurance
Corporation of |
7,43,32,465 |
1.98 % |
|
The Oriental
Insurance Company Limited |
7,39,05,780 |
1.97 % |
|
National
Insurance Company Limited |
6,89,55,110 |
1.84 % |
|
Citibank N.A. |
6,87,00,497 |
1.83 % |
|
Rothmans International Enterprises Limited |
5,16,51,630 |
1.38 % |
BUSINESS DETAILS
|
Line of
Business : |
Manufacturer of
Cigarettes and Tobacco. It is also engaged in Hotel Business. |
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Product : |
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PRODUCTION STATUS
The company's
production status for the year ended 31st March, 2006 was as under
:
|
Class of Goods |
Unit |
Licensed Capacity |
Installed Capacity |
Actual Production |
|
Cigarettes |
Million |
1,23,547 |
99,349 |
59,123 |
|
Smoking Tobaccos |
Tonne |
N.A. |
N.A. |
118 |
|
Printing /
Packaging including Flexible |
Tonne |
N.A. |
47837 |
38,316 |
|
Redried Tobacco |
Tonne |
N.A. |
N.A. |
1,03,889 |
|
Pulp |
Tonne |
N.A. |
1,00,000 |
97,615 |
|
Paperboards and
Paper |
Tonne |
N.A. |
3,52,500 |
3,65,819 |
GENERAL INFORMATION
|
No. of
Employees : |
5000 |
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Bankers : |
˜
State
Bank of ˜
Standard
Chartered Grindlays Bank Limited, 41, ˜
United
Bank of ˜
Citibank
N.A., Kolkata, ˜
Facilities:
Cash / Export Credit of Rs. 363.7 millions secured by charge over certain
current assets of the company, both present and future. |
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Facilities : |
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Banking Relations : |
Good |
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|
Auditors : |
A. F. Ferguson
and Company Chartered Accountants |
|
Address : |
Kolkata, |
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|
|
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Associates : |
˜
Ansal
Hotels Limited ˜
Gujarat
Hotels Limited ˜
Megatop
Financial Services and Leasing Limited ˜
Newdeal
Finance and Investment Limited ˜
Peninsular
Investments Limited ˜
Russell
Investments Limited ˜
Asia
Tobacco Company Limited ˜
Maharaja
Heritage Resorts Limited ˜
Classic
Infrastructure & Development Limited ˜
International
Travel House Limited ˜
Tobacco
Manufacturers ( ˜
ITC
Filtrona Limited ˜
King
Maker Marketing Inc., |
|
|
|
|
Subsidiaries :
|
˜
Bay
Islands Hotels Limited ˜
BFIL
Finance Limited ˜
BFIL Securities
Limited ˜
Fortune
Park Hotels Limited ˜
Gold
Flake Corporation Limited ˜
Greenacre
Holdings Limited ˜
ITC
Hotels Limited ˜
ITC
Infotech ( ˜
ITC
Infotech India Limited ˜
ITC
Infotech Limited ˜
Landbase
India Limited ˜
MRR
Trading & Investment Company limited ˜
Surya
Nepal Private Limited ˜
Russell
Credit Limited ˜
Srinivasa
Resorts Limited ˜
Wills
Corporation Limited ˜
ITC
Global Holdings Pte. Limited, ˜
Hup
Hoon Traders Pte. Limited, ˜
Hup
Hoon Shipping Pte. Limited, ˜
Chai Fu
Trading Pte. Limited, ˜
AOZT
"Hup Hoon", ˜
Hup
Hoon Impex srl, ˜
Fortune
Tobacco Company Limited, ˜
Fortune
Tobacco Company Inc., |
CAPITAL STRUCTURE
Authorised
Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
5,00,00,00,000 |
Ordinary Shares |
Rs 10/- each |
Rs. 5000.000
millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
3,75,51,78,860 |
Ordinary Shares |
Rs 10/- each |
Rs. 3755.200
millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE SHEET
|
SOURCES
OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS
FUNDS |
|
|
|
|
|
1] Share Capital |
3755.200 |
2482.200 |
2476.800 |
|
|
2] Share
Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves &
Surplus |
86859.600 |
76461.800 |
61623.800 |
|
|
4] (Accumulated
Losses) |
0.000 |
0.000 |
0.000 |
|
NETWORTH
|
90614.800 |
78944.000 |
64100.600 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
336.700 |
886.900 |
315.600 |
|
|
2] Unsecured
Loans |
860.600 |
1566.700 |
892.900 |
|
TOTAL
BORROWING
|
1197.300 |
2453.600 |
1208.500 |
|
|
DEFERRED TAX
LIABILITIES |
3247.600 |
3760.900 |
877.400 |
|
|
|
|
|
|
|
TOTAL
|
95059.700 |
85170.600 |
66186.500 |
|
|
|
|
|
|
|
APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block]
|
41617.300 |
39507.600 |
32983.100 |
|
Capital work-in-progress
|
2434.000 |
1861.500 |
3137.400 |
|
|
|
|
|
|
|
INVESTMENT
|
35170.100 |
38746.800 |
30539.600 |
|
DEFERREX TAX ASSETS
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
|
Inventories
|
26362.900
|
20029.900
|
15342.100 |
|
|
Sundry Debtors
|
5479.600
|
5277.600
|
2301.500 |
|
|
Cash & Bank Balances
|
8558.200
|
556.600
|
340.400 |
|
|
Other Current Assets
|
1468.000
|
1425.200
|
8171.800 |
|
|
Loans & Advances
|
9750.300
|
8103.600
|
8697.700 |
Total Current Assets
|
51619.000
|
35392.900
|
34853.500 |
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
21890.300
|
19256.400
|
28498.300 |
|
|
Provisions
|
13890.400
|
11081.800
|
6828.800 |
Total Current Liabilities
|
35780.700
|
30338.200
|
35327.100 |
|
Net
Current Assets
|
15838.300
|
5054.700
|
(473.600) |
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
95059.700 |
85170.600 |
66186.500 |
|
PROFIT &
LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
Sales Turnover [including other income]
|
100766.100 |
78752.600 |
66953.200 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
32691.900 |
26730.700 |
23190.600 |
Provision for Taxation
|
10338.400 |
48167.700 |
7262.100 |
Profit/(Loss) After Tax
|
22353.500 |
21914.000 |
15928.500 |
|
|
|
|
|
Export Value
|
17935.100 |
12686.500 |
10775.100 |
|
|
|
|
|
Import Value
|
6094.000 |
5970.900 |
4123.700 |
|
|
|
|
|
Total Expenditure
|
68074.200 |
52021.900 |
43762.600 |
QUARTERLY RESULTS
|
Particulars |
30.06.2006 1st Quarter |
30.09.2006 2nd Quarter |
31.12.2006 3rd Quarter |
|
Sales Turnover |
28497.500 |
28876.400 |
31655.700 |
|
Other Income |
849.400 |
794.800 |
697.900 |
|
Total Income |
29346.900 |
29671.200 |
32353.600 |
|
Total Expenditure |
18791.800 |
19149.100 |
20827.700 |
|
Operating Profit |
10555.100 |
10522.100 |
11525.900 |
|
Interest |
07.200 |
34.800 |
-08.700 |
|
Gross Profit |
10547.900 |
10487.300 |
11534.600 |
|
Depreciation |
876.400 |
909.700 |
921.000 |
|
Tax |
3148.700 |
2781.600 |
3439.600 |
|
Reported PAT |
6522.800 |
6796.000 |
7174.000 |
200606 Quarter 1 –
Expenditure Includes (Increase) / Decrease in Stock in Trade
Rs (2411.30) million Consumption of Raw Materials Rs 14716.60 million Staff Cost
Rs 1525.50 million Other Expenditure Rs 4961.00 million Tax indicate Provision
for taxation (including prior year adjustments) EPS is Basic Status of Investor
Complaints for the quarter ended June 30, 2006 Complaints Pending at the
beginning of the quarter Nil Complaints Received during the quarter 08
Complaints disposed off during the quarter 08 Complaints unresolved at the end
of the quarter Nil 1. The above results were reviewed by the Audit Committee
and approved at the meeting of the Board of Directors of the Company held on
July 21, 2006. 2. Figures for the corresponding previous quarter have been
re-arranged, wherever necessary, to conform to the figures of the current
quarter. 3. Gross Income comprises Segment Revenue and Other Income. 4. Effective
April 01, 2006, the Company has adopted the revised Accounting Standard - 15
(AS-15) Employee Benefits as issued by the Institute of Chartered Accountants
of India. Pursuant to this, based on actuarial valuation: a. The net additional
opening liability as on April 01, 2006 for defined benefit plans towards
Pension and Gratuity amounting to Rs 1.7 million has been adjusted against the
opening balance of avenues reserves, and b. There is an additional charge of Rs
16.90 million for the current quarter towards liability for Pension and
Gratuity. 5. Profit after tax of Rs 5583.00 million for the quarter ended June
30, 2005 included a once-of income (net of tax) of Rs 194.90 million, which
arose from the settlement reached with the owners of Searock hotel. Consequently,
the underlying growth in Profit after tax for the quarter ended June 30, 2006
is 21.1%. 6. Provision for Taxation includes Rs 30.8 million (corresponding
previous quarter Rs 43.20 million) for Fringe Benefit Tax. 7. The above as per
clause 41 of Listing Agreement Limited Review: The Limited Review as under
Clause 41 of the Listing Agreement has been completed and related Report
farwarded to the Stock Exchanges. The Report does not have any impact on the
above 'results and Notes' for the quarter ended 30.06.2006 which needs to be
explained.
2006-09 Quarter 2 –
Expenditure
Includes (Increase) / Decrease in Stock in Trade Rs (117.40) million
Consumption of Raw Materials Rs 12428.30 million Staff Cost Rs 1496.70 million
Other Expenditure Rs 5341.50 million Tax indicate Provision for taxation
(including prior year adjustments) EPS is Basic Status of Investor Complaints
for the quarter ended September 30, 2006 Complaints Pending at the beginning of
the quarter Nil Complaints Received during the quarter 01 Complaints disposed
off during the quarter 01 Complaints unresolved at the end of the quarter Nil
1. The above results were reviewed by the Audit Committee and approved at the
meeting of the Board of Directors of the Company held on October 30, 2006. 2.
Figures for the corresponding previous quarter and half year ended September
30, 2005, have been re-arranged, wherever necessary, to conform to current
presentation. 3. Gross Income comprises Segment Revenue and Other Income. 4.
During the quarter, 21,69,670 Ordinary Shares of Re 1/- each were issued and
allotted under the ITC Employee Stock Option Scheme. Consequently, the issued
and paid up share capital of the Company as on September 30, 2006 stands
increased to Rs 375,73,48,530/-. 5. Provision for taxation includes Rs 31.70
million & Rs 62.50 million for Fringe Benefit Tax for the quarter and half
year ended September 30, 2006 respectively. (Corresponding previous quarter and
half year ended September 30, 2005 - Rs 52.00 million and Rs 95.20 million
respectively). 6. The Company has increased its shareholding in King Marketing,
Inc
200612 Quarter 3 –
Expenditure
Includes (Increase) / Decrease in Stock in Trade Rs (773.60) million
Consumption of Raw Materials Rs 14249.60 million Staff Cost Rs 1647.10 million
Other Expenditure Rs 5704.60 million Tax indicate Provision for taxation
(including prior year adjustments) EPS is Basic Status of Investor Complaints
for the quarter ended December 31, 2006 Complaints Pending at the beginning of
the quarter Nil Complaints Received during the quarter 03 Complaints disposed
off during the quarter 03 Complaints unresolved at the end of the quarter Nil
1. The above results were reviewed by the Audit Committee and approved at the
meeting of the Board of Directors of the Company held on January 31, 2007. 2.
Figures for the corresponding previous quarter and nine months ended December
31, 2005, have been re-arranged, wherever necessary, to conform to current
presentation. 3. Gross Income comprises Segment Revenue and Other Income. 4.
During the quarter, 2817390 Ordinary Shares of Re 1/- each were issued and
allotted under the ITC Employee Stock Option Scheme. Consequently, the issued
and paid up share capital of the Company as on December 31, 2006 stands
increased to Rs 3760.165 Millions. 5. Provision for taxation includes Rs 35.20
million & Rs 97.70 million for Fringe Benefit Tax for the quarter and nine
months ended December 31, 2006 respectively. (Corresponding previous quarter
and nine months ended December 31, 2005 - Rs 52.20 million and Rs 147.40
million respectively). 6. The above is as per Clause 41 of the Listing
Agreement. 7. The Limited Review as required under clause 41 of the Listing
Agreement has been completed and the related report forwarded to the Stock
Exchanges. This Report does not have any impact on the above results and Notes
for the quarter and nine months ended December 31, 2006 which needs to be
explained.
KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt Equity Ratio |
0.02 |
0.03 |
0.02 |
|
Long Term Debt Equity Ratio |
0.01 |
0.01 |
0.01 |
|
Current Ratio |
1.15 |
0.97 |
1.06 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
2.74 |
2.58 |
2.66 |
|
Inventory |
6.99 |
7.55 |
8.48 |
|
Debtors |
29.59 |
34.24 |
51.28 |
|
Interest Cover Ratio |
153.80 |
52.84 |
68.85 |
|
Operating Profit Margin (%) |
22.05 |
22.45 |
21.96 |
|
Profit Before Interest and Tax Margin (%) |
20.00 |
20.11 |
19.92 |
|
Cash Profit Margin (%) |
15.83 |
15.90 |
15.53 |
|
Adjusted Net Profit Margin (%) |
13.78 |
13.56 |
13.48 |
|
Return on Capital Employed (%) |
37.73 |
36.89 |
39.58 |
|
Return on Net Worth (%) |
26.55 |
25.52 |
27.34 |
STOCK PRICES
|
Face Value |
Rs. 10.00/- |
|
High |
Rs. 188.00/- |
|
Low |
Rs. 184.05/- |
LOCAL AGENCY FURTHER INFORMATION
History
Started
in 1990, ITC-IBD today holds a prominent position among the exporting community
in
ITC-IBD
attributes its leverage in the industry, to a focussed approach on
strengthening its core competencies in select commodities. Today, IBD continues
to deliver the pick of
Its beginnings were
humble. A leased office on
Though the first
six decades of the company’s existence were primarily devoted to the growth and
consolidation of the Cigarette and Leaf Tobacco businesses, the Seventies
witnessed the beginnings of a corporate transformation that would usher in
momentous changes in the life of the company.
In 1975, the
company launched its hotels business with the acquisition of a hotel in
Chennai, which was rechristened "Hotel Chola". It chose the hotels business for its
potential to earn high levels of foreign exchange, create tourism
infrastructure, and generate large scale direct and indirect employment. Since then the company's hotels business has
grown to occupy a position of leadership, with 40 owned and managed properties
spread across
In 1979, the
company entered the paperboards business by promoting ITC Bhadrachalam
Paperboards Limited, which today has become the market leader in
In 1985, it set
Surya Tobacco Company in
Recently, the
company's packaging and printing business has launched a line of high quality
greeting cards under the brand name "Expressions". It has also entered the Lifestyle Retailing
business with the Wills Sport range of international quality relaxed wears for
men and women.
During 2002, ITC
Bhadrachalam Paperboards Limited, a subsidiary company was merged with the
company. The shareholders of ITCPBL were
allotted one equity share of the company for every sixteen shares held.
ITC Bhadrachalam
Paperboards (ITCBPL) incorporated in July, 1975 commenced business in October,
1979. Part of the ITC group, in 1986, ITCBPL came out with a right issue of
15.90 millions equity shares (premium: Rs. 90) aggregating to Rs. 1590 millions
on 3:10 basis, to part finance its expansion plans. It manufactures a wide
range of baseboards, papers and paperboards for packing cigarettes, safety
matches, detergents, etc. Its product range also includes superior quality
cultural paper, coated and speciality papers and boards.
During the year
2000-2001 the company developed superior products for critical applications
like liquid packaging and premium quality graphics printing. It also embarked
on a modernisation-cum-upgradation project of the pulp mill with an outlay of
Rs. 2260 millions.
The company was
merged with ITC, its group company during the year 2002. The shareholders of
the company were allotted one equity share of ITC for every 16 shares held.
The company has
pioneered the manufacture of cigarettes in
The Scheme of
Amalgamation of the erstwhile ITC Bhadrachalam Paperboards (ITC Bhadrachalam)
with company was sanctioned by the Honourable High Court at Kolkata and the
Honourable High Court of Judicature of Andhra Pradesh at
In consideration of
the amalgamation, 20,96,982 fully paid-up ordinary shares of Rs. 10/- each of
company were issued and allotted on 6th May, 2002 to the members of
ITC Bhadrachalam. The new ordinary shares rank pari passu with the existing
ordinary share of the company. The paid up share capital of the company has
consequently increased from Rs. 2454.100 millions to Rs. 2475.100 millions.
Milestones
1996
Flat 10 packs
launchced
1997
10s hinged-lid
packs introduced for regular size filters
1999
New factory at
2000
Brownfield project
at
Entry into
Lifestyle Retailing business with first store in
2001
Regular size
filters offered in 5s packs
‘Wills Lifestyle’
chain rapidly scaled upto 29 stores
Engry into the
foods Business with lauch of ‘Kitchens of India’.
‘Expressions valued
Customer’ programme started
2002
Beveled edge packs
introduced
‘mint-o’ trademark
acquired relaunched in lemon and mint flavours, ‘Candyman’ added to confectionery
rang, ‘ Aashirvaad’ atta rolled out
Chain expanded to
48 stores; Master Design Facility established; ‘Wills Classic’ formal wear
launched; ‘John Players’ introduced in the mid-priced popular segment.
Entry into Greeting
Cards business
‘Expressions
Paperkraft’ premium paper products launched
Entry into
marketing of safety matches
2003
‘
Integrated Group
Research and Development Centre established ‘Aashirvaad’ Salt introduced;
‘Candyman’ range expanded to deposited candies and eclaris; ‘Sunfeast’ biscuits
lauched; Aashirvaad Ready Meals’ offered; ‘mint-o’ in lemon mint flavour.
‘Wills Clublife’
evening wear launched.
‘Expressions
Classmate’ mass market notebooks for schools and colleges introduced.
Entry into
marketing of Agarbatties
2004
Long – Size filters
offered in wave packs
‘Kitchens of
‘Mangaldeep’ brand
of Agarbatties added to portfolio.
Fixed
Assets
Ø
Trademarks and Goodwill
Ø
Know-how, Business and Commercial
Rights
Ø
Land Freehold
Ø
Buildings Freehold
Ø
Leasehold Properties
Ø
Licensed Properties - Building
Improvement
Ø
Railway Sidings etc.
Ø
Plant and Machinery
Ø
Capitalised Software
Ø
Computers etc.
Ø
Furniture and Fixtures
Ø
Motor Vehicles etc.
Directors
Profile:
Y. C. Deveshwar
Y. C. Deveshwar,
Chairman of ITC Limited since January 1, 1996, is respected for the deep
insight with which he steers a multi-business corporation like ITC, and is credited
with several key strategic interventions which have positioned ITC as a well
managed, well governed, value creating, top league Company in India.
An engineering
graduate from NT,
Deveshwar has been honoured with several
recognitions within India/ including the Honorary Fellowship of the All India
Management Association, the Distinguished Alumni Award of the Indian Institute
of Technology, Delhi, the Meridien Hotelier of the Year Award and the Marketing
Man of the Year from A and M, the country's leading marketing publication.
Deveshwar has also been honoured with the Manager Entrepreneur of the Year
Award 2001, by Ernst and Young.
Other
Directorships
|
Name of the
Company |
Position |
|
Surya Nepal
Private Limited |
Chairman and
Director |
|
International
Travel House Limited |
Director |
|
HT Media Limited |
Director |
|
Woodlands Medical
Centre Limited |
Director |
|
West Bengal Industrial
Development Corporation Limited |
Director |
Committee Memberships of other Companies:
Nil
S. S. H. Rehman
S. S. H. Rehman
was appointed a Director on the Board of ITC on November 21, 1997. He began his
career with the Indian Army, moving over to the hospitality industry in 1975
and joining ITC in 1979. Since then Rehman has been General Manager of
Welcomgroup's premier hotels across
Other
Directorships
|
Name of the
Company |
Position |
|
ITC Infotech
India Limited |
Chairman and
Director |
|
ITC
Infotech Limited |
Chairman and
Director |
|
ITC Infotech ( |
Chairman and
Director |
|
Asia Tobacco
Company Limited |
Chairman and
Director |
|
Surya Nepal
Private Limited |
Director |
|
West Bengal
Industrial Development Corporation Limited |
Director |
|
The Tollygunge
Club Limited |
General Committee
Member |
Committee Memberships of other Companies:
Nil
Anup Singh
Anup Singh was appointed
a Director on the Board of ITC on November 21, 1997. He joined ITC in 1968
after receiving a Bachelor's degree in Electrical Engineering from NT,
Kharagpur. He was a key participant in the Company's major strategic initiative
in the mid seventies to implement the concept of 'Management by Objectives
(MBO)'.
Singh has had a
long stint in ITC's Cigarette business, including heading it as the Chief
Executive. He has also been the Chief Executive of the erstwhile Specialty
Papers Division. He is currently in charge of the Cigarettes, Information
Technology and Lifestyle Retailing businesses of the Company.
He is immediate
Past President and a Committee member of the Indian Chamber of Commerce. He is
also a Director of The Tobacco Institute of India.
Name of the Company
Committee Position
Other Directorships
|
Name of the
Company |
Position |
|
ITC Infotech
India Limited |
Chairman and
Director |
|
ITC Infotech
Limited* |
Chairman and
Director |
|
ITC Infotech ( |
Chairman and
Director |
|
Asia Tobacco
Company Limited |
Chairman and
Director |
|
Surya Nepal
Private Limited* |
Director |
|
|
Director |
|
Development
Corporation |
General Committee |
|
Limited |
Member |
|
The Tollygunge
Club Limited |
Committee Memberships
of other Companies: Nil |
K. Vaidyanath
K. Vaidyanath was
inducted into the ITC Board on January 1 7, 2001. He holds responsibility for
the Company's Finance and IT functions, its investment subsidiary, Agri
Business and Corporate Communications.
Before his elevation to the Board, he was the Company's Chief Financial
Officer. An MBA from XLRI,
Other Directorships
|
Name of the
Company |
Position |
|
Russell
Credit Limited |
Chairman and
Director |
|
Gold Flake
Corporation Limited |
Chairman and Director |
|
Wills Corporation
Limited |
Chairman and
Director |
|
Greenacre
Holdings Limited |
Chairman and
Director |
|
ITC Infotech
India Limited |
Director |
|
Agro Tech Foods
Limited |
Director |
|
Classic
Infrastructure and Development Limited |
Director |
Committee
Memberships of other Companies
|
Russell Credit
Limited |
Audit Committee |
Chairman |
|
Gold Flake
Corporation Limited |
Audit Committee |
Chairman |
|
Greenacre
Holdings Limited |
Audit Committee |
Chairman |
|
ITC Infotech India
Limited |
Audit Committee |
Member |
J. P. Daly
J. P. Daly
joined the ITC Board as a representative of BAT on January 21, 2005. His
academic qualifications include a Master of Business Administration from the
Other Directorships
|
Name of the
Company |
Position |
|
British-American
Tobacco |
Director |
|
British American
Tobacco ( |
Director |
Committee
Memberships of other Companies: Nil
C. R. Green
C. R. Green has
represented BAT on the ITC Board from April 16, 1999. He joined BAT in 1993
after a long and distinguished career in the oil industry. He has spent over 18
years with Texaco, the
In the tobacco
industry, Green has worked with Brown and Williamson, where he was Vice
President
P. B. Ramanujam
P. B. Ramanujam has represented the General
Insurance Corporation of India (GIC) and its erstwhile subsidiaries on the
Board of ITC since October 30, 1998. He has held several responsibilities in
GIC covering finance, accounts / investments, reinsurance, information
technology etc. He was General Manager and Director with the National Insurance
Company Limited and the Managing Director of GIC till July 31, 2004.
Ramanujam has served as a faculty member at
the National Insurance Academy, Pune. He was also the Chairman of the committee
appointed by the interim Insurance Regulatory Authority (IRA) for prescribing
norms, rules and regulations in the area of finance. He has also been a member
of two other IRA committees on technical issues and investment matters, and
Insurance Regulatory Information System. He has recently been appointed
Chairman of FICCI's Reinsurance Sub-Committee. He is also a Member of the
Insurance Tariff Advisory Committee and the Finance Committee of Insurance
Regulatory and Development Authority (IRDA).
Other Directorships
|
Name of the Company |
Position |
|
Nicco Corporation
Limited |
Director |
|
BOC India Limited |
Director |
Committee Memberships of other Companies:
Nil
Basudeb Sen
Basudeb Sen has been on the Board of ITC since
March 23, 1995, first as a nominee, then as a representative of UTI, and from
July 28, 2000 as an Independent Non-Executive Director. Sen has over 32 years
of management experience in different areas of commercial banking, development
banking and investment management. He is an M.A. in Economics and a Ph.D. from
Indian Statistical Institute, besides being an alumnus of the
financial
markets and energy.
He has served as Chairman and Managing
Director of the Industrial Investment Bank of India Limited and as Executive
Director of UTI. He has managed critical business responsibilities in various
areas including strategic planning, risk management system, investment
portfolio management and fund marketing and credit and project appraisal.
In the last two decades, Sen has served as
Chairman and / or Member of various working groups / committees set up by SEBI,
RBI, Indian financial institutions and industry associations on suth issues as
consortium lending, corporate governance, institutional disinvestment, overseas
investment by mutual funds, money markets and corporate debt restructuring, as
also on the Boards of several companies in sectors like infrastructure,
engineering, petrochemicals, electronics and financial services.
Other Directorships
Name of the Company
Position
Gujarat NRE Coke
Limited Director
South Asian
Petrochem Limited Director
Srei Venture
Capital Limited Director
Committee Memberships of other Companies
Name of the Company Committee Position
Gujarat NRE Coke
Limited Audit
Committee Member
South Asian
Petrochem
Limited Shareholders'
Member
Grievance Committee
Audit
Committee Member
Ram S. Tarneja
Ram S. Tarneja
joined the ITC Board as an Independent Non-Executive Director on November 25,
1996. His present Chairmanships include, among others, that of Jolly Board Limited,
Nissin ABC Logistics Private Limited and the Pan Asian Management and Rural
Research Organisation. Tarneja was Managing Director - Bennett, Coleman and
Company Limited, until May 1991 and continues to be on the Board of that
company. He is past President, Indian Merchants Chamber, All India Management
Association, Indian Newspaper Society, Indian Institute of Personnel
Management, Asian Association of Management Organisations and others.
Other Directorships
|
Name of the
Company |
Position |
|
jolly Board
Limited |
Chairman and
Director |
|
Transcorp
International Limited |
Director |
|
Nesco Limited |
Director |
|
Bharat Gears
Limited |
Director |
|
Bennett, Coleman
and Company Limited |
Director |
|
Housing
Development Finance Corporation Limited |
Director |
|
Ballarpur
Industries Limited |
Director |
|
Rallis India
Limited |
Director |
|
Otis Elevator
Company ( |
Director |
|
Phillips Carbon
Black Limited |
Director |
|
Gati Limited |
Director |
|
Phoenix Township
Limited |
Director |
|
SOWiL Limited |
Director |
Committee
Memberships of other Companies
|
Name of the
Company |
Committee |
Position |
|
Bharat Gears
Limited |
Audit Committee |
Chairman |
|
Bennett, Coleman
and Company Limited |
Audit Committee |
Chairman |
|
Housing
Development Finance Corporation Limited |
Shareholders /
Investors Grievance Committee |
Chairman |
|
Ballarpur
Industries Limited |
Shareholders /
Investors Grievance Committee |
Chairman |
|
Rallis India
Limited |
Audit Committee Shareholders / Investors
Grievance Committee |
Member |
|
Otis Elevator
Company ( |
Audit Committee
Member |
Member |
B. Vijayaraghavan
B. Vijayaraghavan joined the ITC Board as an
Independent Non-Executive Director on November 25, 1996. Vijayaraghavan was in
the Indian Administrative Service from 1957 to 1993, when he retired in the
rank of Chief Secretary to the Government of Tamil Nadu. He has served as
Secretary to the Tamil Nadu Government in the Public Works, Forests and
Fisheries, Prohibition and Excise and Home departments. He has been the
Chairman of the Tamil Nadu Electricity Board, Member – Board of Revenue and
Commissioner of Commercial Taxes, Tamil Nadu, Chairman and President -
Tuticorin Alkali Chemicals and Fertilisers Limited, Chairman and Managing
Director – State Industries Promotion Corporation of Tamil Nadu and Vigilance
Commissioner and Commissioner for Administrative Reforms, Tamil Nadu.
After his
retirement from Government service, Vijayaraghavan was a Member of the
Syndicates of Alagappa University and
Notes:
1. Other Directorships
and Committee Memberships of Directors are as on 31st March, 2005.
2. Other Directorships
exclude Directorships in Indian Private Limited Companies, Memberships of
Managing Committees of Chambers
of Commerce /
Professional Bodies and Alternate Directorships.
3. Committee
Memberships are in respect of Audit Committee and Investors Grievance Committee
of Indian Companies.
Denotes foreign
Company.
Business:
Subject is engaged in
the business as manufacturers of Cigarettes and Unmanufactured Tobacco. It is also engaged in Hotel Business.
Subject is one
of the most valuable companies
Awards
·
Golden Peacock
Global Award;
- Greentech Environment Excellence Gold Award;
- Highest Green Rating from Centre for Science and Environment;
- Cll ENCON Award;
- CAPEXIL Top Export Award; Indira
- Priyadarshini Vrikshamitra Award;
- Cll Vantech Industry Rolling Trophy;
- Rajiv Gandhi Parti Bhoomi Mitra Award;
- National Award for Energy Conservation;
- Gold Award for Safety from the Royal Society for Prevention of
Accidents (
Company
Performance
The Company posted
yet another year of impressive results testifying to the robustness of the
corporate strategy of creating multiple drivers of growth. The performance is
even more satisfying when viewed in the light of the challenging business
environment of the cigarette industry, incubation costs of new FMCG businesses
and the rural marketing initiatives and gestation costs of investments in the
paperboards business.
Gross Turnover for the year 2005-06 grew by 21.5% to Rs.162240 millions, driven
by good top line growth across all businesses of the Company.
Pre-tax profit (before exceptional items) increased by 22.3% to Rs.32690
millions, while post-tax profit (before exceptional items) at Rs.22800 millions
registered a growth of 24.1%. The financials for the year include Rs.450
millions (post-tax) towards once off assistance to contract manufacturers in
view of the retrospective withdrawal of Central Excise exemption on cigarettes
manufactured in the North Eastern States during the year 2000 (last year's
exceptional items represent net income amounting to Rs.3540 millions
(post-tax), most of which relate to past litigation). Inclusive of this
exceptional item, the Company's Profit After Tax stands at Rs.22350 millions.
Earnings Per Share (before exceptional items) for the year stands at Rs. 6.08.
Cash flows from Operations were Rs.29970 millions during the year. The ITC
scrip gained 118% during the year outperforming the benchmark BSE Sensex by 44
percentage points.
In order to strike a balance between the need to sustain strategic
investments for a secure future and the annual expectation of shareholders for
growing income, the Directors are pleased to recommend a dividend of Rs.2.65
per Ordinary Share of Re.1/- each {previous year (adjusted for stock split and
bonus issue): Rs.2.07 per share} for the year ended 31st March, 2006. The cash
outflow in this regard will be Rs.11346.8 millions (previous year Rs.8817.0
millions) including Dividend Tax of Rs.1395.6 millions (previous year Rs.1084.5
millions). The Board further recommends a transfer to General Reserve of
Rs.11500 millions (previous year Rs.11000 millions). Consequently, the Board
recommends leaving an unappropriated balance in the Profit and Loss Account of
Rs.5620.6 millions (previous year Rs. 6114.1 millions).
Foreign
exchange earnings
The Company
continues to view foreign exchange earnings as a key priority. All businesses
in the ITC portfolio are mandated to engage with overseas markets in a bid to
test competitiveness and seek growth opportunities. The ITC Group's
contribution to foreign exchange earnings over the last ten years amounted to
nearly USD 2.5 billion, of which agri exports constituted 65%. Earnings from
agri exports is an indicator of the Company's contribution to the rural economy
through effectively linking small farmers with international markets.
During the financial year 2005-06, the Company, its subsidiaries and the
ITC-Welcome group hotel chain together earned Rs.19410 millions in foreign
exchange. Direct foreign exchange earned by the Company amounted to Rs.17940
millions. The Company's expenditure in foreign currency amounted to Rs.6790
millions, comprising purchase of raw materials, spares and other expenses at
Rs.5390 millions, and import of capital goods at Rs.1400 millions.
Branded
packaged foods
The Company's
Branded Packaged Foods business continued to expand rapidly with sales
recording an impressive growth of 87% over the previous year. Product portfolio
was further augmented during the year with the launch of a number of
differentiated and innovative products leveraging the in-house capability of
the ITC R&D Centre at
The Biscuits category was rapidly scaled up during the year with sales doubling
over previous year's levels. The Sunfeast' range was further expanded with the
launch of Cookies (Sunfeast Golden Bakes') in 3 exciting variants and Sweet and
Salt Crackers (Sunfeast Snacky') in 2 unique variants. These products have met
with excellent consumer response and continue to gain consumer franchise.
Sunfeast Dark Fantasy', a dark chocolate and vanilla cream offering, was
extended to select markets during the year. It has redefined the premium
segment and further strengthened the Company's quality reputation. These product
launches/extensions, along with the strong growth trend in the sales of other
value added products in the Creams and Marie segment, enriched the portfolio
and improved realizations. During the year, the outsourced and distributed
manufacturing capacities were geared up to support the increase in scale of
operations.
The business is in the process of establishing its own production facilities
across the country, including in tax-exempt zones, with a view to servicing
proximal markets in an efficient and cost-effective manner.
The year also saw the roll out to target markets of Sunfeast Pasta Treat', a
semolina based non-fried product. This healthy snacking option is available in
4 exciting flavours and has met with encouraging response from consumers. The
Company has signed up superstar Shah Rukh Khan as the brand ambassador for
Sunfeast'. This association is expected to yield significant value addition by
reinforcing the brand attributes and reiterating the spread the smile'
positioning.
In the Staples category, Aashirvaad Atta' continued to gain increasing consumer
franchise, further consolidating its position as the clear leader amongst
national branded players with market share touching 45%. Aashirvaad Select',
the Company's premium atta offering, was extended to target markets during the
year. Plans are on the anvil to launch value added variants to augment product
range. The year also marked the entry into the branded spices market under the
Aashirvaad' brand, leveraging the brand's strong association with superior
quality and consistency.
In the Confectionery category, the Company's brands - Candyman' and Mint-o' -
posted strong growth with sales growing by nearly 70% over the previous year.
Product portfolio was bolstered during the year with the launch of Mint-o masti
blue' in a refreshingly new pack design and product formulation and Cofitino'
in the hitherto unrepresented Toffees segment. These products have met with
encouraging response from consumers.
In the Ready-to-Eat segment, product portfolio was expanded with the
introduction of number of variants in the packaged desserts and conserves and
chutneys segment under the Kitchens of India' (KOI) banner. Several new
variants were also launched during the year to augment the popular' range of
Aashirvaad Ready Meals'.
The year also marked the business' foray into the Instant Mixes markets under
the Aashirvaad' brand. The Aashirvaad Instant Mixes' range currently comprises
5 products, which are being extended to the target markets. The Kitchens of
India' brand has become synonymous with the finest packaged Indian food. Its
gourmet offerings are critically acclaimed by consumers for their authentic
recipes, excellent taste and high quality. The KOI range is also exported to
the
The Company plans to rapidly scale up the Branded Packaged Foods business
drawing upon the agri-sourcing strength of the e-Choupals, cuisine expertise,
product development capabilities and branding, trade marketing and distribution
competencies to establish itself as the most trusted provider of food products
in the Indian market'.
Lifestyle
retailing
The Company's
Lifestyle Retailing business made good progress during the year in both premium
and popular segments of the branded apparel market. Impressive gains were made
in store productivity, sell through rates, average realisations and supply
chain efficiencies. The business also commenced exports of garments leveraging
the market opportunity arising post dismantling of the quota regime.
During the year, the Company's portfolio of products in the premium segment
comprising the Classic' range of formal wear, Wills Sport' relaxed wear and
Wills Clublife' evening wear expanded its consumer franchise significantly.
Product availability was further enhanced through the expansion of the Wills
Lifestyle' chain of exclusive stores in high potential catchment malls. The
brand is now available in over 150 locations through exclusive brand outlets'
(EBOs) and shop-in-shops'.
A strong customer privileges programme, combined with emphasis on superior
visual merchandising and in-store services helped raise the quality of consumer
experience, leading to a substantial increase in consumer loyalty.
Product portfolio was augmented during the year with the introduction of
new offerings such as suits and jackets, leather and other accessories. The
Wills Lifestyle' range was further supplemented during the year with the launch
of Essenza Di Wills', an exclusive line of prestige fragrance products, at
select Wills Lifestyle' stores. The 16-SKU range for men and women, designed to
complement the Wills Lifestyle' offerings, currently comprises perfumes,
deodorants, body lotions, bathing bars, nourishing creams, shampoos, etc. These
products have met with encouraging response from discerning consumers.
The year also marked the launch of the Wills Lifestyle India Fashion Week'
(WIFW), billed as the country's most premier fashion event. The first WIFW
event, which was held in
In the popular Youth' segment, John Players' delivered a strong performance
during the year. The brand's association with superstar and youth icon Hrithik
Roshan, who has been signed up by the Company as the brand ambassador for John
Players' reinforced its style with a playful side' positioning. This
association has created a high buzz for the brand among its youthful target
audience, mobilising large trials and garnering enhanced consumer mind share.
Distribution was strengthened through stronger presence in key multi-brand
outlets' (MBOs) and rapid expansion of the network of EBOs. The brand is now
available in 80 EBOs and over 1500 MBOs. In the short span of time since its
launch, the brand has earned high industry recognition, winning the Most
Admired Shirt Brand of the Year' award at the Images Fashion Awards 2005.
In the area of apparel exports, the Company made a healthy beginning during the
year, establishing relationships with key customers. The business is in the
process of enhancing its manufacturing capacities to take full advantage of the
emerging growth opportunities. It is also engaged in developing long term
partnerships with high potential customers.
During the year the in-house product testing laboratory was granted ISO 17025
certification by the National Accreditation Board for Calibration and Laboratories.
In line with its commitment to world-class quality, the Company launched Six
Sigma' based improvement programmes for both products and processes. The
business continued to leverage its state-of-the-art master facility' to develop
superior products. It also scaled up manufacturing at the outsourced
just-in-time' facility with a view to servicing consumer preferences more
effectively and to improve inventory management. The Company continues to
enhance competencies by inducting international experts and domain specialists
in the areas of product design, garment engineering and fabric development with
a view to strengthening its competitive position.
Greeting,
gifting and stationery
The Company scaled
ups the stationery business significantly during the year. The sales volume of
Classmate' notebooks trebled over that of last year, making it the most widely
distributed notebook brand across the country. It has established itself as the
quality leader in a short span of time. The Alfa Plus' paper used in these
notebooks is custom manufactured at the Company's Bhadrachalam unit. Besides
providing superior whiteness, brightness and smoothness, this paper is also
Elemental Chlorine Free (ECF), imparting a unique value proposition to the
brand. The brand franchise of Classmate' was significantly enhanced by
extending the Classmate Young Authors Contest 2005'- a creative story writing
competition - to 15 cities and introducing the Classmate Young Artist
Competition' in six metros, with an overall reach of 120,000 students across
4,000 schools. In line with its Citizen First' philosophy, the Company
contributes Re.1 to its social responsibility initiatives for every notebook
sold.
With the emergence of organized players in the market, the Rs.50000 millions paper
stationery industry is waking up to the presence of quality branded offerings.
The Company's Classmate' and Paperkraft' brands are well poised to achieve
leadership position in the notebook market. The business is also planning to
launch a mass-market range of notebooks leveraging the Company's distribution
strengths in smaller towns and rural areas, especially in markets served by the
e-Choupal and Choupal Saagar' networks.
The Greeting Cards segment continued to be impacted by the rapid growth of mobile
telephony and messaging services. Despite challenging market conditions, the
Expressions' brand of greeting cards established itself as the market leader in
multi-brand outlets across the country. Product range in the gifting segment
was augmented during the year with the launch of pop-up books, mini books and
three more variants of Regalia' - a premium collection of greeting cards for
the connoisseur.
The business has set up a creative design studio at Chennai and has installed a
digital asset management system to safeguard its intellectual property. The
business continues to partner with small-scale enterprises across the country
for effective sourcing. It continues to remain committed to aiding small-scale
units to enhance the quality of their products and processes. The business
enjoys ISO 9001:2000 certification in recognition of its quality systems and
processes.
Growing levels of literacy, favourable demographics, government led
education initiatives and improving quality consciousness are expected to drive
demand for branded notebooks. Accordingly, the Company plans to scale up the
stationery business significantly on the back of a superior and differentiated
product range and a strong distribution network.
Hotels
The hotel industry
continued on its growth path during the year on the back of the country's
strong economic performance. Foreign tourist arrivals continued to be buoyant,
registering a robust growth of 13.5% during the calendar year 2005 to touch
3.92 million. Consequently, foreign exchange earnings from the tourism sector
touched USD5.7 billion during 2005 representing a growth of 20% over the
previous year. Besides generating valuable foreign exchange, the tourism
industry has a large economic multiplier impact and provides significant
employment opportunities. While the growth in foreign tourist arrivals has been
relatively strong over the last two years,
The potential of the tourism industry to contribute to
The Company's hotels business posted yet another impressive financial
performance during the year with Segment Revenues growing by 36% to touch
Rs.7830 millions driven by improved occupancies and realizations across properties.
Gross Operating Profit (PBDIT) grew 64% over the previous year to touch Rs.3170
millions during 2005-06, while Segment Results (PBIT) at Rs.2580 millions grew
83% over the previous year.
ITC Grand Central, the Company's second property in Mumbai, which was
commissioned in January 2005, posted an impressive performance to record a
positive bottomline in its first full year of operations. The business also
progressed a comprehensive renovation and product up gradation Programme during
the year in keeping with the strategy of maintaining the contemporariness of
its properties. Key initiatives during the year included renovation of guest
rooms and suites in ITC Hotel Windsor Sheraton and Towers,
Buoyed by the impressive performance and the emerging opportunities in this
industry as discussed herein, the Company has embarked on an aggressive
investment led growth plan. The year marked the commencement of construction of
a new super-deluxe luxury hotel at
The ITC-Welcomgroup chain, with its globally benchmarked levels of product and
service excellence and superior hoteliering capabilities is well positioned to
not only sustain its leadership position in the industry, but also to emerge as
the largest hotel chain in the country over the next few years.
Paperboards,
paper and packaging
The Paperboards,
Specialty Paper and Packaging segment recorded strong growth during the year
both in terms of sales and operating profits. As set out in the Segment Report
annexed as Schedule 20 to the Accounts, Segment Revenue grew by 21% to touch
Rs.18960 millions while Segment Results improved by 25.5% to Rs.3510 millions.
The segment generated strong operating cash flow of Rs.4670 millions.
The company has
joint venture with the following:
˜
ITC
Filtrona Limited
ITC Filtrona maintained its market leader in the Indian Cigarette filter
industry with nearly 58% value share.
˜
King
Maker Marketing Inc.,
King Maker Marketing Inc. (KMM), a company registered in the State of
New York, USA, has been enabling company’s foray into the
˜
Maharaja
Heritage Resorts Limited
˜
CLI3L
e-Services Limited
The company has
entered into Agreements with Ardath Tobacco Company Limited,
MEMBERSHIP
˜
Confederation
of Indian Industry
Website Details :
Overview
Stay at
the beautiful ITC Hotel Kakatiya Sheraton & Towers and enjoy modern
facilities and great service. Located just three kilometres from the airport,
they are close to major corporate offices,
Retreat
to their guest rooms, filled with the things you need to connect with most:
High Speed Internet Access, cable television for relaxing, and a bed created
for a great night’s sleep. There’s even fresh coffee/tea in the morning for the
day ahead.
Indulge
in some of the best cuisine from anywhere. Relax with colleagues at one of
their bars or enjoy some live entertainment. They have a variety of cuisines,
ranging from Irish pub classics to Indian specialties.
Being a
favoured conference destination, their staff is ready to help you plan and
create a memorable meeting, conference, or celebration. Their audiovisual
equipment is also on hand to cover every angle.
Find
comfort and experience something new at ITC Hotel Kakatiya Sheraton &
Towers.
Features and Activities :
They
thought of the little things (and big things) that will make you feel at ease.
v
Hotel Services
v
24-Hour Front Desk
v
Babysitting Service
v
Business Center/Services
v
Car Rental Service
v
Concierge Service
v
Wake-up Service Available
v
Room Service
v
Tour Service
v
Golf Course Nearby
v
Fitness Facility
v
Parking Available
v
Smoke Detectors
v
Outdoor Pool
v
Whirlpool/Hot Tub
v
Safe Deposit Boxes
The welcomegroup
Grand Kakatiya Sheraton Hotel & Towers is a contemporary hotel with state
of the art facilities for the discerning business traveler and the finest
cuisines of the land.
Hotel Aminities
v
Fitness Room
v
Restaurant
v
Lounge
v
Meeting/ Banquet Space
v
Business/
v
Outdoor Pool
v
Child Care
Room Amenities
v
Coffe Maker
v
TV in room
v
Mni Bar in room
v
Room service
v
Hair Dryer
Hotel Policies :
v
Check in time : 12.00 p.m.
v
Check out time : 12.00 p.m.
Press Release:
ITC Limited & Starwood join
hands for luxury collection in India
Apr
12, 2007
ITC-Welcomgroup enters a new phase in its collaboration with
Starwood Hotels & Resorts through a new franchise agreement.
ITC-Welcomgroup will have an exclusive tie-up and partner Starwood in bringing in
its premium brand, the ‘Luxury Collection’, to
With this new tie-up, these ITC-Welcomgroup hotels will join the list of exclusive properties that are part of Starwood’s ‘Luxury Collection’. Globally recognized as a unique brand in the world, the Luxury Collection consists of 60 premium properties spread across the globe. The Luxury Collection brand philosophy of offering unique experiences indigenous to their destination complements ITC- Welcomgroup’s own ethos of being rooted in the Indian tradition of warm, personalized service.
Commenting on the new agreement, Mr Y C Deveshwar, Chairman,
ITC Limited, said, “A three decade old relationship has been strengthened and
enriched in a new partnership. The ITC-Luxury Collection exclusive arrangement
recognizes ITC’s leadership in the premium hotel segment and places it amongst
the finest hotel chains in the world. A new window to the world is now open to
us, and together with their aggressive growth plans in
S. S. H. Rehman Executive Director ITC Limited, in charge of
Hotels, Travel-Tourism & Foods, expressed his satisfaction, saying, “They
are delighted to partner Starwood in bringing the premium ‘Luxury Collection’
brand to
The tie up with Sheraton Hotels, came into being on January
1st 1979, when the ITC-Welcomgroup chain consisted of just three hotels. These
were the Chola in Chennai (then
Mr. Miguel Ko, President of Starwood Hotels & Resorts,
Asia Pacific says, “
Perspectives
Unlike
other trade players, they are focused on transforming their commodity export
business from being a price sensitive and cash leveraged trading operation to a
knowledge based and customer focused enterprise. With an objective to sustain
and strengthen their stringent quality standards, efficient execution of
contracts and accurate market information, they have become the most reliable
business partners with their customers.
The
mission of IBD is to become the first choice supply chain partner for
"select" international customers accessing the finest Agri and Aqua
product offerings from
Ingredients
for a Quality Story
Managed
by a team of highly qualified professionals, backed by sound experience and
product knowledge skills, ITC-IBD is equipped to deliver quality products and
services. Their range of agri products is procured from the most fertile of
Indian farmlands. This includes Soyabeans from Madhya Pradesh, Coffee from
Coorg in Karnataka, Basmati Rice from the Northern Plains, Groundnuts and
Sesame Seeds from
All
their products are carefully cleaned processed and hygienically packed to
maintain their wholesome goodness. At every stage - buying, milling,
state-of-the-art processing, storage, loading and despatch - a high standard of
quality control is maintained. This ensures that their customers get value
added products with their natural flavour, taste and aroma intact.
Awards
and Recognition
Recognising
ITC-IBD's effort, the Government of India has conferred on it the coveted
"Golden Star Trading House" status. IBD has earned many awards from
the Government and various trade organisations during the past decade for being
one of the topmost exporters in soyameal, rice etc. This impressive track record
symbolises IBD's unbeatable Sourcing and Execution Strength.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The
Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or anti-terrorism
sanction laws or whose assets were seized, blocked, frozen or ordered forfeited
for violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms and
conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.41.34 |
|
|
1 |
Rs.81.81 |
|
Euro |
1 |
Rs.55.74 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
75 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history (10%) Market
trend (10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|