ITC Ltd — Interim / Quarterly Report 2020

Oct 30, 2019

ITC Limited Virginia House 37 J. L Nehru Road Kolkata 700 071, India Tel. : 91 33 2288 9371 Pax : 91 33 2288 4016 / 1256 / 2259 / 2260

30thOctober, 2019

The Manager Listing Department National Stock Exchange of India Ltd. Exchange Plaza Plot No. C-1, G Block Bandra-Kurla Complex Bandra (East) Mumbai 400 051

The General Manager Dept. of Corporate Services BSE Ltd. P. J. Towers Dalal Street Mumbai 400 001

The Secretary The Calcutta Stock Exchange Ltd. 7, Lyons Range Kolkata 700 001

Dear Sirs,

Related Party Transactions

We enclose, in terms of Regulation 23(9) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, statement on related party transactions of the Company for the half year ended 30thSeptember, 2019, in the required format.

Yours faithfully,

ITCiinvited , 4

(R. K. Singhi) Executive Vice President & Company Secretary

Encl. as above.

cc: Securities Exchange Commission Division of Corporate Finance Office of International Corporate Finance Mail Stop 3-9 450 Fifth Street Washington DC 20549 U.S.A.

cc: Societe de la Bourse de Luxembourg 35A Boulevard Joseph II L - 1840 Luxembourg

Related Party Disclosures

	1. OTHER RELATED PARTIES WITH WHOM THE COMPANY AND ITS SUBSIDIARIES HAD
	TRANSACTIONS:

i) Associates & Joint Ventures:

• Associates
• a) Gujarat Hotels Limited b) Russell Investments Limited
• c) ATC Limited
• d) International Travel House Limited - being associates of the Group
• e) Tobacco Manufacturers (India) Limited, UK - of which the Company is an associate

Joint Ventures

• a) Maharaja Heritage Resorts Limited
• b) ITC Essentra Limited

ii) a) Key Management Personnel (KMP):

Y. C. Deveshwar	Chairman & Non-Executive Director (upto 11.05.2019)
S. Pun *	Chairman & Managing Director
N. Anand	Executive Director
B. Sumant	Executive Director
R. Tandon	Executive Director & Chief Financial Officer
S. Banerjee	Independent Director
H. Bhargava	Non-Executive Director
A. Duggal	Independent Director
S. B. Mathur	Independent Director
A. Nayak	Independent Director (w.e.f 13.07.2019)
J. Pulinthanam	Non-Executive Director
N. Rao	Independent Director
S. S. H. Rehman	Independent Director (upto 14.09.2019)
A. K. Seth	Independent Director (w.e.f. 13.07.2019)
M. Shankar	Independent Director
D. R. Simpson	Non-Executive Director
appointed as Chairman of the Company w.e.f. 13.05.2019

Members - Corporate Management Committee

• S. Puri
• N. Anand
• B. Sumant
• R. Tandon
• C. Dar
• S. K. Singh
• S. Sivakumar

K. S. Suresh (upto 08.06.2019)

Company Secretary R. K. Singhi

b) Relatives of Key Management Personnel:

Mrs. B. Deveshwar (wife of Late Y. C. Deveshwar) (upto 11.05.2019) Mrs. R. Tandon (wife of Mr. R. Tandon) Mrs. N. Singhi (wife of Mr. R. K. Singhi)

iii) Employee Trusts:

• a) IATC Provident Fund
• b) ITC Defined Contribution Pension Fund
• c) ITC Management Staff Gratuity Fund
• d) ITC Employees Gratuity Fund
• e) ITC Gratuity Fund 'C'
• f) ITC Pension Fund
• g) ILTD Seasonal Employees Pension Fund
• h) ITC Platinum Jubilee Pension Fund
• i) ITC Bhadrachalam Paperboards Limited Management Staff Pension Fund
• j) ITC Bhadrachalam Paperboards Limited Gratuity Fund 'A'
• k) ITC Bhadrachalam Paperboards Limited Gratuity Fund 'C'
• I) ITC Hotels Limited Employees Superannuation Scheme
• m) Greenacre Holdings Limited Provident Fund
• n) Greenacre Holdings Limited Gratuity Fund

Related Party Disclosures (contd.)

2. DISCLOSURE OF TRANSACTIONS BETWEEN THE GROUP AND RELATED PARTIES FOR THE HALF YEAR (HY) ENDED ON 30.09.2019 AND THE STATUS OF OUTSTANDING BALANCES AS AT 30.09.2019 in Crores

RELATED PARTY TRANSACTIONS SUMMARY		Associates		Joint Ventures		Key ManagementPersonnel		Relatives of KeyManagement Personnel		Employee Trusts		Total
		HY endedSeptember 30,2019	HY endedSeptember 30,2018	HY endedSeptember 30,2019	HY endedSeptember 30,2018	HY endedSeptember 30,2019	HY endedSeptember 30,2018	HY endedSeptember 30,2019	HY endedSeptember 30,2018	HY endedSeptember 30,2019	HY endedSeptember 30,2018	HY endedSeptember 30,2019	HY endedSeptember 30,2018
	1. Sale of Goods/ Services	1.47	1.35	39.17	14.12							40.64	15.47
	2. Purchase of Goods/ Services	78.35	55.07	115.64	137.19							193.99	192.26
	3. Reimbursement received for Share Based Payments	0.44	0.91	0.07	0.26							0.51	1.17
	4. Rent Income	0.57	0.54									0.57	0.54
	5. Rent Paid	2.11	1.87			0.09	0.11	0.16	0.40			2.36	2.38
	6. Remuneration of Managers on Deputation reimbursed	3.20	2.87									3.20	2.87
	7. Remuneration of Managers on Deputation recovered	3.10	3.02	0.58	0.63							3.68	3.65
	8. Contribution to Employees' Benefit Plans									41.67	37.22	41.67	37.22
	9. Dividend Income	1.59	2.27	6.75	2.70							8.34	4.97
	10. Dividend Payments	1712.55	1533.85			0.69	1.61					1713.24	1535.46
	11. Expenses Recovered	0.08	0.09	0.12	0.18							0.20	0.27
	12. Expenses Reimbursed	0.13	0.09	0.01	0.01	0.02	0.03					0.16	0.13
	13. Advance given during the year	-										-
	14. Adjustment/Receipt towards Refund of Advances	0.45	-									0.45	-
	15. Deposits received during the year		-
	16. Adjustment/Receipt towards Refund of Deposits	-										-
	17. Transactions with Key Management Personnel'
17A.	- Short term benefits					15.52	23.58					15.52	23.58
17B.	- Other remuneration					4.08	3.61					4.08	3,61
17C.	- Stock options granted 2
	18. Outstanding Balances #
	i) Receivables	3.41	3.64	5.29	4.94							8.70	8.58
	ii) Advances Given	0.04	0.24							16.03	90.25	16.07	90.49
	iii) Deposits Given 3					0.03	0.08	0.03	0.40			0.06	0.48
	iv) Deposits Taken	0.62	0.62									0.62	0.62
	v) Payables	8.43	10.55	13.25	9.15					5.46		27.14	19.70
	19 . Impairment of investment in Joint Venture as at the half yearend			4.82	4.82							4.82	4.82

The amounts outstanding are unsecured and will be settled in cash

I Post employment benefits are actuarially determined on overall basis and hence not separately provided.

2The Company has granted Stock Options to the Directors and KMP under its Employee Stock Option Schemes at 'market price' [within the meaning of the Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014]. Since such Options are not tradeable, no perquisite or benefit Is immediately conferred upon the employee by such grant of Options, and accordingly the said grant has not been considered as remuneration. However, the Group has recorded employee benefits expense by way of share based payments to employees, in accordance with Ind AS-102, at t 64.51 Crores for the half year ended 30th September, 2019 [2019 (HY1) - 155.64 Crams], out of which 22.90 Crores [2019 (HY1) - 23.52 Crores] is attributable to Directors and KMP.

3 Outstanding deposit balances exclude deposits with a KMP and a relative of KMP, which were existing on the date of change in the related party relationship.

3. INFORMATION REGARDING SIGNIFICANT TRANSACTIONS I BALANCES

Generally in excess of 10% of the total transaction value of the same

RELATED PARTY TRANSACTIONS SUMMARY		HY ended onSeptember 30,	HY ended onSeptember 30,20192018		RELATED PARTY TRANSACTIONS SUMMARY	HY ended onSeptember 30, 2019	HY ended onSeptember 30,2018
	1. Sale of Goods I Services				10. Dividend Payment
	ITC Essentra Limited	39.17	14.12		Tobacco Manufacturers (India) Limited	1712.55	1533.85
	2. Purchase of Goods / Services			11.	Expenses Recovered
	International Travel House Limited	63.82	43.65		Maharaja Heritage Hotels Limited	0.11	0.17
	ITC Essentra Limited	115.61	137.11		International Travel House Limited	0.08	0.09
	3. Reimbursement received for Share BasedPayments				12. Expenses Reimbursed
	Maharaja Heritage Resorts Limited	0.02	0.15		Gujarat Hotels Limited	0.13	0.09
	International Travel House Limited	0.29	0.60		13. Advances Given during the year
	ATC Limited	0.15	0.30		International Travel House Limited	-
	4. Rent Income				14. Adjustment/Receipt towards Refund of Advances
	International Travel House Limited	0.57	0.54		Intemational Travel House Limited	0.45	-
	5. Rent Paid				15. Deposits Received during the year
	Gujarat Hotels Limited	2.11	1.87		International Travel House Limited		-
	Mrs. B. Deveshwar	0.13	0.38		16. Adjustment/Receipt towards Refund of Deposits
	6. Remuneration of Managers on Deputationreimbursed				International Travel House Limited	-
	Gujarat Hotels Limited	3.20	2.87	17.	Transactions with Key Management Personnel*
	7. Remuneration of Managers on Deputationrecovered				17A. Short term benefits
	International Travel House Limited	1.44	1.50		Late Y.C. Deveshwar	1.59	7.22
	ATC Limited	1.31	1.22		Mr. S. Puri	3.34	3.07
	ITC Essentra Limited	0.42	0.28		Mr. N. Anand	2.16	1.79
	8. Contribution to Employees' Benefit Plans				Mr. R Tandon	1.68	1.66
	IATC Provident Fund	14.81	13.43		Mr. B. Sumant	1.76	1.19
	ITC Defined Contribution Pension Fund	11.67	10.73		178. Other Remuneration
	ITC Pension Fund	9.95	9.79		Late Y.C. Deveshwar	0.10	0.38
	9. Dividend Income				Mr. S. Banerjee	0.42	0.37
	ITC Essentra Limited	6.75	2.70		Mr. A. Duggal	0.41	0.37
	Gujarat Hotels Limited	0.61	0.61		Mrs. M. Shankar	0.43	0.38
	International Travel House Limited	0.98	1.66		Mr. S. B. Mathur	0.42	0.37
					Mr. S. S. H. Rehman	0.41	0.39
					Mrs. N. Rao	0.39	0.36
					Mr. D.R. Simpson	0.40	0.36
					Mr. J. Pulinthanam	0.41	0.31

RELATED PARTY TRANSACTIONS SUMMARY HY ended on September 30, 2019 HY ended on September 30, 2018 18. Outstanding Balances i) Receivables ATC Limited 1.49 1.53 Maharaja Heritage Resorts Limited 2.86 3.52 Intemational Travel House Limited 1.92 2.11 ITC Essentra Limited 2.43 1.43 ii) Advances Given Employee Trust - Pension Funds 16.03 77.96 Employee Trust - Gratuity Funds - 12.30 HO Deposits Given Late Y. C. Deveshwar - 0.05 Mrs. B. Deveshwar - 0.38 Mr. R. Tandon 0.03 0.03 Mrs. N. Singhi 0.03 0.03 iv) Deposits Taken International Travel House Limited 0.62 0.62 v) Payables International Travel House Limited 3.84 7.35 ITC Essentra Limited 13.25 9.15 Employee Trust - Gratuity Funds 5.46 19. Impairment of investment in Joint Venture as at the half year end Logix Developers Private Limited 4.82 4.82

In accordance with Ind AS-102, the Group has recognised employee benefits expense by way of share based payments, of which 0 22.90 Crores [2019 (HY1) - 0 23.52 Crores] Is attributable to key managerial personnel: Late Y. C. Deveshwar 0 0.62 Crore [2019 (HY1) - 0 0.45 Crore], Mr. S. Pun 0 7.12 Crores [2019 (HY1) - 0 5.93 Crores], Mr. N. Anand 0 4.02 Crores [2019 (HY1) - 0 5.31 Crores], Mr. R. Tandon 7 3.86 Crores [2019 (HY1) - 0 3.93 Crores], Mr. B. Sumant f 1.42 Crores [2019 (HY1) - 0 1.48 Crores] and Mr. R. K. Singhi 0 0.63 Crow [2019 (HY1) - 0 0.55 Grote)

in Crores)