ITC Ltd — Interim / Quarterly Report 2020

Jul 2, 2020

2 nd July, 2020

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 31 st March, 2020, in the required format.

Yours faithfully,

ITC Limited

(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

Consolidated Half Yearly Disclosure of Related Party Transactions

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

• i) Associates & Joint Ventures: Associates
  • a) Gujarat Hotels Limited
  • b) Divya Management Limited
  • c) Antrang Finance Limited
  • d) ATC Limited
  • e) International Travel House Limited - being associates of the Group
  • f) 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:

S. Purl" Chairman & Managing Director N. Anand Executive Director B. Sumant Executive Director R.Tandon S. Banerjee# H. Bhargava A. Duggal# A. Jerath S. B. Mathut A. Nayak# N. Rao# A. K. Seth# M. Shankar" D. R. Simpson Y. C. Deveshwar J. Pulinthanam Executive Director & Chief Financial Officer Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director (w.e.f. 31.01.2020) Non-Executive Director Non-Executive Director (w.eJ. 13.07.2019) Non-Executive Director Non-Executive Director (w.e.f. 13.07.2019) Non-Executive Director Non-Executive Director Chairman & Non-Executive Director (passed away on 11.05.2019) Non-Executive Director (up to 22.12.2019)

S. S. H. Rehrnan'' Non-Executive Director (up to 14.09.2019)

"appointed as the Chairman of the Company w.eJ. 13.05.2019 # Independent Director

Company Secretary R. K. Singhi

Members - Corporate Management Committee

• S. Puri
• N. Anand
• B. Sumant
• R. Tandon
• C. Dar
• S. K. Singh
• S. Sivakumar
• K. S. Suresh (up to 08.06.2019)

b) Relatives of Key Management Personnel:

B. Deveshwar (wife of Late Y. C. Deveshwar)

• T. Anand (wife of N. Anand)
• R. Tandon (wife of R. Tandon)
• N. Singhi (wife of R. K. Singh i)

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) IL TO 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 31.03.2020 AND THE STATUS OF OUTSTANDING BALANCES AS AT 31.03.2020

													(H,Ctoros
	RELATED PARTY TRANSACTIONS SUMMARY		Associates		Joint Ventures		Key Management Personnel		Relatives of KeyManagement Personnel		Employee Trusts		Total
			HY ended on HY ended onMarch 31. 2020 March 31, 2019 March 31, 2020 March 31, 2019 March 31, 2020 March 31, 2019 March 31. 2020 March 31, March 31. 2020 March 31			HY ended on HYended on HY ended on HY ended on HY ended on			HYendedon HYend2019		ed on HY ended on HYended on HYended on		, 2019 March 31. 2020 March 31,2019
	1. Sale of Goodsl Services	1.67	1.98	16.40	15.58							18.07	17.56
	2. Purchase of Goods/ Services	67.11	69.54	127.34	135.15							194.45	204.69
	3. Sale of Property. Plant and Equipment					0.18						0.18
	4. Value of share based payment
	Reimbursement for share based payments	(0.15	0.56	0.02	0.15							(0.13)	0.71
	S. Rent Income	0.51	0.52									0.51	0.52
	6. Rent Paid'	2.31	2.49			0.22	0.11	0.16	0.40			2,69	3.00
	7. Remuneration of Managers on Deputation reimbursed	3.09	248									3.09	2.48
	8. Remuneration of Manaqers on Deputation recovered	2.46	2.60	0,48	0.53							2.94	3.13
	9. Contribution to Employees' Benefit Plans									56.67	53.22	56.67	53.22
	10. Expenses Recovered	0.14	0.14	0.10	0.13	,	.					0.24	0.27
	11. Expenses Reimbursed	0.13	0.15			0.02	0.02					0.15	0.17'
	12. Advances Given durinq the half year	0.68	0.26									0.68	0.26
	13. Adjustment/Receipt towards Refund of Advances	0.68										0.68
	14. Deposits Given ourmo the half year					0.05		0.05				0.10
	15. Remuneration to Kev Manaqement Personnel T
	15A. - Short term benefits					26.76	20.51					26.76	20.51
	15B • • Other remuneration					3.73	3.38					3.73	3.38
	15C. . Share based payment granted 2
	16. Outstanding Balances •
	i.l Receivables	2.99	1.76	7.98	3.53							10.97	5.29
	iilAdvances Given	O.OS	0.49								54.86	0.05	55.35
	iii) Deposits Given 3					0.07	0.08	0.07	0040			0.14	0.48
	iv) Advance Taken
	v) Deposits Taken	0.63	0.63									0.63	0.63
	vi) Payables	7.73	9.99	8.49	16.21					90.67	-	106.89	26.20
17.	Impairment of investment in Joint Venture as at the halfyear end			4.67	4.82							4.67	4.82

• Includes rent pertaining to leases classified as Right of Use Assets •

• The amounts outstanding are unsecured and will be settled in cash.

1Post employment benefits are actuarially determined on overall basis and hence not separately provided.

2 During the year. the Company granted Stock Options to the Executive 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]. The Company also granted Employee Stock Appreciation Linked Reward Units (ESAR Units) to the aforesaid persons under the 'ITC Employee Cash Settled Stock Appreciation Linked Reward Pian'. Since such Stock Options and ESAR Units are not tradeable. no perquisite or benefit is immediately conferred upon the employee by grant of such Stock Options/ ESAR Units. and accordingly the said grants have not been considered as remuneration. However, in accordance with Ind AS -102, the Group has recorded employee benefits expense by way of share based payments to employees at ~ 18.29 Crores for the half year ended 31" March. 2020 [201jHY2) - ~ 103.11 Croresj), of which ~ 22.43 Crores [2019 (HY2) - ~ 20.23 Crores] is attributable to the Executive Directors and KMP.

3Outstanding deposit balance excludes deposit with KMP and Relative of KMP which were existing on the date of cessation of being designated as KMP.

Note. Figures of previous period have been regrouped / rearranged wherever necessary.

Related Party Disclosures (contd.)

3. INFORMATION REGARDING SIGNIFICANT TRANSACTIONS / BALANCES

(Generally in excess of 10% of the total transaction value of the same type)

RELATED PARTY TRANSACTIONS SUMMARY		March 31.2020	HY ended on HY ended onMarch 31.2019	RELATED PARTY TRANSACTIONS SUMMARY		March 31.2020	HY ended on HY ended onMarch 31,2019	RELATED PARTY TRANSACTIONS SUMMARY	March 31.2020	HY ended on HY ended onMarch 31.2019
	Sale of Goods / Services			10.	Expenses Recovered			16. Outstanding Balances
	International Travel House Limited	1.62	1.93		International Travel House Limited	0.14	0.14	Receivables
	ITC Essentra Limited	16.38	15.58		Maharaia Hentage Resorts Limited	0.09	0.13	ATC Limited	0.52	1.15
2.	Purchase of Goods / Services			11.	Expenses Reimbursed			Maharaia Heritage Resorts Limited	2.30	3.33
	International Travel House Limited	52.51	54 42		Gujarat Hotels Limited	0.12	0.13	International Travel House Limited	2.83	0.60
	ITC Essentra Limited	127.23	134.98		International Travel House Limited		0.02	ITC Essentra Limited	5.68	0.20
	Sale of Property, Plant and Equipment			12.	Advances Given during the half year			ii) Advances Given
	K.S. Suresh	0.11			International Travel House Limited	0.68	0.26	Employee Trust - Pension Funds		41.98
	R. K. Singhi	0.07		13.	Adjustment/Receipt towards Refund of Advances			Employee Trust - Gratuity Funds		17.53
	Value of share based payment				International Travel House Limited	0.68		International Travel House Limited	0.05	0.49
	Reimbursement for Share Based Payments			14.	Deposits Given during the half year			iii) Deposits Given
	Maharaia Heritage Resorts Limited	0.01	0.09		N. Anand	0.05		Y. C. Deveshwar		0.05
	International Travel House Limited	(0.17)	0.39		T. Anand	0.05		B. Deveshwar		0.38
	ATC Limited	0.02	0.18	15.	Remuneration to Key Management Personnel(KMP) *			IN Anand	0.05
5.	Rent Received			15A	Short term benefits			T. Anand	0.05
	International Travel House Limited	0.51	0.52		Y. C. Deveshwar	3.53	8.68	R. Tandon	0.03	0.03
6.	Rent Paid				S. Puri	6.95	3.09	N. Singhi	0.03	0.03
	Gujarat Hotels Limited	2.31	2.49		N. Anand	3.49	1.95	iv) Deposits Taken
	B. Deveshwar (Related Party upto 11.05.2019)		0.38		R Tandon	3.24	1.54	International Travel House Limited	0.63	0.63
7.	Remuneration of Managers on Deputationreimbursed				B. Sumant	3.19	1.17	v) Payables
	Guiarat Hotels Limited	3.08	2.48	15B	Other Remuneration			ATC Limited	2.39	3.16
8.	Remuneration of Managers on Deputationrecovered				Y. C. Deveshwar		0.35	Gujarat Hotels Limited	2.01	2.09
	International Travel House Limited	1.15	1.33		S. Baneriee	0.40	0.35	International Travel House Limited	3.34	4.75
	ATC Limited	0.99	0.97		H. Bhargava	0.39	0.36	ITC Essentra Limited	8.49	16.21
	Guiarat Hotels Limited	0.32	0.30		A. Duqqal	0.37	0.36	Employee Trust - Pension Funds	60.69
	ITC Essentra Limited	0.31	0.27		S. B. Mathur	0.38	0.36	Employee Trust - Gratuity Funds	29.97
	Contribution to Employees' Benefit Plans				A Nayak	0.39		Impairment of investment in Joint Venture as17.at the half year end
	IATC Provident Fund	21.33	16.61		N. Rao	0.38	0.32	Logix Developers Private Limited	4.67	4.82
	ITC Defined Contribution Pension Fund	4.29	11.61		S. S. H. Rehman		0.39
	ITC Pension Fund	12.20	10.64		A. K. Seth	0.38
	ITC Employees Gratuity Fund	12.58	10.00		M. ShankarD.R. Simpson	0.390.38	0.360.34

in accordance with Ind AS - 102, the Group has recognised employee benefits expense by way of share based payments (refer Note 2), of which ₹ 22.43 Crores [2019 (HY2)- ₹ 20.23 Crores] is attributable to Executive Direct